SIA - SIA off 1.1%; 3Q saved by savvy Hedging - UOB KayHian

Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
Research House: UOB KayHian

Singapore Airlines (C6L.SG) is off 1.1% at $14.88, in line with a broadly weaker market, despite below-consensus 3Q results, with management noting a cloudy outlook. UOB KayHian says SIA’s “strong grip on its costs” could support its stock near term; the house notes passenger unit costs were at 8.6 cents/ASK, against its forecast of 9.0 cents/ASK; “This suggests that SIA had hedged a substantial portion of fuel requirements.” 

However, the house notes management warned about airlines’ higher capacity injections and higher jet fuel prices. “Tiger Airways (J7X.SG) is expected to add 40% in capacity out of Singapore, which could put pressure on yields.” 

The house keeps its Hold rating and $15.90 target, saying net profit was 71% above its expectation of $170 million on lower-than-expected unit costs (off 2.3% on quarter), $45.1 million in recognition of liquidated damages and subsidiary SilkAir’s surprisingly strong results. 

It adds, an improvement in load factors will likely be the next share price catalyst. The house suggests a $14.30 entry price. 

Biosensors - Biosensors off 1.8% in weak market; result strong - OCBC

Stock Name: Biosensors
Company Name: BIOSENSORS INT'L GROUP, LTD.
Research House: OCBC

Biosensors (B20.SG) off 1.8% at $1.12, falling along with the broad market despite posting yearly and sequential gains in earnings. 3Q revenue rose 31.8% on-year, 16.8% on-quarter to US$42.6 million ($54.8 million), net profit rose 7.8% on-year, and climbed 57.6% on-quarter to US$13.3 million. 

OCBC says the results were strong, with revenue within expectation, core earnings slightly higher than forecast. The house notes good gross profit, EBIT margins, at 77.7% (vs 72.4% in 3Q10, 78.7% in 2Q11) and 30.6% (vs 24.1% in 3Q10, 25.8% in 2Q11) respectively: “This was due largely to improving manufacturing efficiency, change in product mix and lower expenses resulting from its U.S. restructuring exercise.” 

The house adds that drug-eluting stents continue to be the key growth driver, with the segment’s sales rising 60.0% on-year, “which helped to offset a decline in sales of other interventional cardiology products.” 

OCBC keeps its Buy rating and nudges its target to $1.36 from to $1.35; “We remain sanguine about BIG’s growth prospects.”

SMRT - SMRT off 0.5%; costs cloud outlook

Stock Name: SMRT
Company Name: SMRT CORPORATION LTD
Research House: Kim Eng

SMRT (S53.SG) is off 0.5% at $2.04 after the transport group’s 3Q net profit rose 9.6% on-year to $43 million with revenue +8.5% at US$243.9 million ($313.7 million), as margin concerns limit potential upside. OCBC, which has a Hold rating and $2.16 fair value, says revenue gains were offset by a decline in operating margins, which contracted by 4.5 percentage point on-year to 21.0%.



“Going forward, high operating costs are likely to weigh on SMRT’s performance.” It notes revenue from fare-based operations +8.7% on-year though operating profits slipped 19.8% on-year. 

Kim Eng says the results were within expectations; it upgrades the stock to Hold from Sell, raises its target price to $1.97 from $1.75 as it rolls forward its target valuation to FY12. 

 

But it notes the company expects higher staff costs in 4Q11 ahead of the opening of Circle Line Stages 4 and 5 in 2011, while it expects 4Q profit to be hurt by higher scheduled train repair costs. 



Orderbook suggests downside likely limited to $2.03.  

 

Kep Corp - Nomura ups Keppel target to $15.00; buy rating

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: Nomura

Nomura raises Keppel Corp’s (BN4.SG) target to $15.00 from $13.10, reiterates its Buy rating after factoring in strong FY10 earnings (7.0% ahead of the house’s estimate) plus the recent run-up in jack-up rig contracts. 

“In 1Q11, Keppel has secured roughly US$800 million ($1.03 billion) in new contracts and we expect more to come on a strong jack-up rig renewal trend.” The house says the strong order momentum reaffirms its investment thesis on the jack-up replacement cycle in a market which is beginning to show differentiation in day-rates, and utilisation between old and new high-spec rigs. 

Nomura lifts its FY11F/FY12F EPS forecasts by 5.0%/10%; “While shares have outperformed the STI by 9.0% in the past month, valuation does not appear stretched (near five-year mean P/BV) and we expect further new order momentum to drive share price performance with the Petrobras orders yet to play out.” 

Keppel is down 2.3% at $11.74. 

TigerAir - RBS upgrades Tiger Airways to 'hold' from 'sell'

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: RBS

RBS has upgraded Singapore budget carrier Tiger Airways (TAHL.SI) to “hold” from “sell” and raised its target price to $1.90 from $1.58.



Tiger Airways said on Friday its third quarter net profit rose 60% to $22.6 million due to stronger passenger volumes and higher average passenger fares.

RBS said the firm’s passenger numbers grew 13.4% from a year earlier and the average fare per passenger rose by 4.6%, indicating that the airline’s reputation among travellers has been repaired after flight cancellations last year.

The brokerage had downgraded Tiger Airways to “sell” last September after the firm suffered a high number of flight cancellations due to pilot shortage, but it has been operating normally since November.

At 3:15 p.m., Tiger shares were down 1.7% at $1.74 on a volume of 1.1 million shares.

Mewah - BNP Paribas starts Mewah International at Buy

Stock Name: Mewah
Company Name: MEWAH INTERNATIONAL INC.
Research House: BNP Paribas

BNP Paribas starts Mewah International (MV4.SG) at Buy with a $1.33 target price. It says Mewah — Malaysia’s second-largest palm oil refiner and sixth-largest globally — has modern plants with state-of-the-art equipment, uses computerised process control and robotic system-storage facilities:

“All of which equates to operational efficiency.”" The house notes Mewah controls 14% of the Malaysian edible-oil market and is embarking on an expansion programme over 2010-13 that is expected to raise refining capacity 19% and quadruple its specialty fats output. 

It says one of Mewah’s key success factors is its management’s decision to integrate and modernise when most competitors were satisfied to remain pure refiners. The house benchmarks Mewah against Wilmar (F34.SG), rated Buy, Olam (O32.SG) not rated, and China Corn Oil (1006.HK) not rated, to derive a target blended mean P/E of 14X. Shares are off 0.9% at $1.09. 

SATS - Deutsche reinstates SATS at Buy; $3.80 target

Stock Name: SATS
Company Name: SATS LTD.
Research House: Deutsche Bank

Deutsche Bank reinstates SATS’ (S58.SG) Buy rating with a $3.80 target price saying the company is well-positioned for long-term structural growth.

“We like SATS given its strong market positions in both the aviation and food solutions sectors. We think (recent Japanese acquisition) TFK is value-accretive and estimate it adds 6% to our SATS valuation.”

It says further value-accretive M&A could be positive catalysts while “the growing importance of the food solutions business increases opportunities for synergies across the group. SATS offers 17% 3-year net profit CAGR on our estimates, which should support a relatively attractive 5%-6% dividend yield.” 

The shares are off 0.4% at $2.81. SATS’ 3Q results are due Tuesday.

Olam - DBS Vickers raises Olam's target to $3.70

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: DBS Vickers

DBS Vickers raises Olam International’s (O32.SG) target to $3.70 from $3.60, and reiterates its Buy call on the back of higher commodity prices and expected earnings from recent acquisitions. 

 

“We reiterate our Buy call on the stock for 19% upside to our revised target price. With earnings growth momentum intact from acquisitions, and diversified portfolio and geographic locations, we believe Olam remains undervalued. Strong 2Q11 and 3Q11 earnings should provide catalysts for share price appreciation,” DBS Vickers says. 

 

Olam is down 0.6% at $3.09. 

 

KingsmenC - OCBC cuts Kingsmen Creatives to Hold From Buy

Stock Name: KingsmenC
Company Name: KINGSMEN CREATIVES LTD
Research House: OCBC

OCBC downgrades Kingsmen Creatives (5MZ.SG) to Hold from Buy “in view of its hazy near-term outlook.” The house cuts its fair value estimate to $0.65 from $0.82.



The house says Kingsmen has been growing exponentially since its listing, with earnings growth recording double-digit rates between 2003 and 2008; “we believe that this trend may reach a plateau in FY10-FY11, and are projecting a mild contraction in FY10 profits followed by flat earnings growth in FY11.” 

The house trims FY10 and FY11 estimates by 14% and 23%, respectively, to reflect a more cautious stance; “the group’s ambition of doubling its revenue in five years now appears stretched.” 

It cites potential headwinds as a high-base effect after record high earnings in FY09, a gap in orderbook (with the bulk of revenues from Universal Studios Singapore already recognised) and arbitration proceedings against a sub-contractor. 

However, the house adds, “beyond near-term headwinds, we remain sanguine over Kingsmen’s longer-term prospects...in addition, dividend yield is relatively attractive at around 6%.” 

Shares are untraded at $0.570.

Genting SP - Credit Suisse reiterates Genting at Outperform; $2.65 target

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC
Research House: Credit Suisse

Credit Suisse says it likes Genting Singapore (G13.SG) as a high beta and liquid proxy for the Singapore tourism sector. Cites “burgeoning tourist arrivals (projects 16% growth for 2011), positive GDP growth for Singapore and neighbouring Asian economies in 2011-12E and an active stock market.”

It adds, anecdotal evidence suggests Genting had a happy holiday season: “The integrated resort was packed in end-2010; hotels were operating at maximum capacity while theme park tickets were sold out for November-December. Aside from year-end festivities, strong CPO prices could have boosted spending by punters from nearby Johor.” 

The house reiterates its Outperform call, noting the stock’s 6% underperformance vs Singapore’s market year to date, while “its long-term outlook is attractive.” 

It adds, taking 2010-12E EBITDA CAGR into account, the stock “appears relatively cheap vs global peers.” Credit Suisse’s target of $2.65 implies 30% potential; shares are down 1.5% at $2.03.  

GLP - AMB Property Corp. and Prologis may Change GLP's Japan landscape - UBS

Stock Name: GLP
Company Name: GLOBAL LOGISTIC PROP LIMITED
Research House: UBS

Global Logistic Properties (MC0.SG) is flat at S$2.12 in muted trade, shrugging off news AMB Property Corp. (AMB) and Prologis (PLD) Thursday confirmed the two companies were discussing a potential merger of equals. UBS analysts Michael Lim and Adrian Chua say if the deal proceeds, “it would create a global industrial powerhouse.” 

They note GLP’s competitive landscape in Japan could intensify, (PLD/AMB would have combined Japan logistic NLA of around 1.5 million square meters, 42% smaller than GLP’s) but “PLD/AMB would have a greater ability to leverage its combined network and could also intensify competition for acquisition and development growth. This, in turn, would challenge GLP’s plans to pursue greenfield projects through its Japan fund.”

They add, a PLD/AMB entity does not alter GLP’s China leadership dynamics as PLD does not have a China footprint or development pipeline. UBS keeps its Buy rating and $2.71 target; “nonetheless, we think this newsflow could weigh on investor sentiment although we do not foresee any near-term impact.” 

 

Capitaland - CapitaLand flat; tepid interest in land parcel Buy

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED
Research House: DBS Vickers

CapitaLand (C31.SG) flat at $3.65 with a moderate 2.2 million shares traded, as the developer’s purchase of a enbloc site at Marine Point for $100.68 million fails to generate much interest.



CapLand says inclusive of a $12.8 million development charge, the land cost works out at $1,056 psf per plot ratio. It plans to build 150 units of 1 and 2 bedroom apartments, for launch in 1H12. 

DBS Vickers, which has a Buy rating and $4.95 target, reckons the breakeven cost of the project could come in at $1,500-S1,550 psf; “based on the current market transactions in the area of around $1,700-$1,800 psf, we believe the group could rake in a margin of 10%-15% on this project.” 

UOB KayHian expects the breakeven price to be lower, at $1,300-$1,350 psf and selling prices at above $1,550 psf (assuming a margin of 15%), “on the higher side, factoring in a 10%-15% price appreciation in the area.” 

It adds, “the overall impact on CapitaLand’s RNAV is very minimal“ (at below 1.0%). 

OSIM - Osim off 2.9%; strong 4Q results likely priced-in

Stock Name: OSIM
Company Name: OSIM INTERNATIONAL LTD
Research House: OCBC

Osim International (O23.SG) off 2.9% at $1.67 in active trade, falling back after hitting $1.74 at the open, its highest level since late 2006, as despite its strong 4Q, FY results, investors are likely uneasy about pushing the price higher after the stock’s 215% surge since the start of 2010. 

Yesterday, the massage chair maker posted 4Q revenue at $132.6 million, off 5.9% on-year, up 13.6% on-quarter; net profit is at $16.9 million, up 108.3% on-year, 30.1% higher on-quarter. OCBC says the results beat its estimates, with the on-year revenue decline mainly due to the conversion of GNC Australia into franchised outlets. 

“There is strong growth momentum for Osim going forward. In view of the strong execution capabilities of the group’s expansion plans, rollout of new innovative products and better-than-expected financial performance, we raise our FY11F earnings estimate by 18.1%,” which increases its fair value estimate to $1.96 from $1.68. 

OCBC upgrades the stock to Buy from Hold.

FrasersComm - Frasers Commercial Trust off 2.9%; cosmo divestment positive - OCBC

Stock Name: FrasersComm
Company Name: FRASERS COMMERCIAL TRUST
Research House: OCBC

Frasers Commercial Trust (A48U.SG) is down 2.9% at S$0.170, in hefty volume of 23.6 million shares, after reporting 1Q FY11 gross revenue of $29.0 million, down 2.3% on year and off 1.1% on quarter, which was mainly on lower contribution from Cosmo Plaza due to the expiry of a significant tenancy in August 2010. 

FCOT successfully divested Cosmo Plaza on Jan. 18, 2011, notes OCBC; “We view the divestment of Cosmo Plaza favorably, as this will improve the overall quality of the portfolio and create additional debt headroom for FCOT to enlarge its existing portfolio via future acquisitions.” 

The house puts its Buy rating and $0.18 fair value estimate under review, pending more updates from management and notes that net property income dropped 2.4% on year and 1.2% on quarter to $22.9 million; “Our valuation has previously factored in the divestment of Cosmo Plaza, and 1Q11 income was in line with our estimates.” 

The REIT is likely to trade in a $0.165-$0.175 range today. 

FirstRes - First Resources rated 'hold' by DMG

Stock Name: FirstRes
Company Name: FIRST RESOURCES LIMITED
Research House: DMG

DMG & Partners Securities in a Jan 25 research report says: "Controlling shareholder, Eight Capital Inc., is selling 75 million of its First Resources' shares (bringing its stake down from 74% to 68.2%) and FR is selling 15 million treasury shares, at $1.48 per share (8.1% discount to 19 Jan's close).

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GMG - Bank of America-Merrill Lynch starts GMG Global at Buy; $0.50 target

Stock Name: GMG
Company Name: GMG GLOBAL LTD
Research House: BofA Merrill Lynch

Bank of America-Merrill Lynch starts GMG Global (5IM.SG) at Buy with a $0.50 target.



The house says the stock offers a 75% potential upside and new target price implies FY2011 price earnings of 15.5X. “Rubber is the new black” and that GMG is the “world's pure rubber play,” the house says. 

It adds, the rubber sector is facing a severe supply shortfall after several years of underinvestment. “With the rising demand driven by China and India auto, we expect the rubber price rally to last till 2012, especially as we enter the winter season for rubber in 1H 2011.” 

The stock is +7.0% at $0.305.

SIA - Daiwa cuts SIA target to $17, keeps 'outperform'

Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
Research House: Daiwa

Daiwa has lowered its target price for Singapore Airlines (SIA)(SIAL.SI) to $17.00 from $18.08 and kept its “outperform” rating.



Daiwa has lowered its earnings forecast for SIA by 6-17% for fiscal years 2011-2013 to account for higher jet-fuel prices and to include cargo price-fixing penalties.

The brokerage also said it expects SIA to report a net profit of $252 million for the third quarter, 38% lower than the year ago period, due to one-off fines by the European Union and the U.S. For cargo price-fixing.



Daiwa said without those fines, the world’s second largest carrier by market value, would have reported a net profit of $415 million or 6% higher than the same quarter in the previous financial year.



At 9:38 a.m. GMT, shares of SIA were 0.26% lower at $15.08 and have fallen 1.4% so far this year.

Kep Corp - Keppel +4.9%; analysts laud results; $12.00 cap

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: Daiwa

Keppel Corp. (BN4.SG) is +4.9% at $11.90 in active trade of almost 9 million shares, at its highest level since June 2008, as analysts laud the rig builder’s 4Q results and increase target prices and earnings estimates. 

DMG raises its target to $13.00 from $12.00, keeps at Buy, after raising FY11-12 EPS estimates by 8% and 7% respectively “as we tweak our O&M billing schedule and raised margins for old orders.” 

Deutsche Bank, which has a Buy rating, raises its target to $14.20 from $13.50, saying Keppel “is well positioned to benefit from any upgrade, replacement and new build opportunities in the O&M sector. Property also seems promising with its strong launch pipeline and capital deployment opportunities.”

Goldman Sachs, which reiterates its Buy call, raises its target to $13.50 from $13.00, saying stock catalysts include a strong pipeline for new order wins, rising crude oil prices (house 2011 forecast is US$100/bbl) and consensus earnings upgrades. 

Orderbook suggests $12.00 is likely to cap gains today.

MapletreeInd - Goldman Sachs nudges up Mapletree Indus target, estimates

Stock Name: MapletreeInd
Company Name: MAPLETREE INDUSTRIAL TRUST
Research House: Golman Sachs

Goldman Sachs says Mapletree Industrial Trust’s (ME8U.SG) 3Q DPU of 1.52 cents (core DPU of 1.46 cents) was 4.0% above its estimate, “driven by higher occupancy and disciplined cost controls.” 

It says operating trends were healthy with its portfolio passing rents of $1.45 psf, +1.0% on-quarter. It says, highlights include:

1. its portfolio occupancy rose to 92.3% from 91.2% in 2Q, above its 91.5% estimate;


2. 22% average positive rental reversion;


3.  a tighter cost to income ratio of 28% 4) the rollout of AEI works on Redhill 2.

It adds “we expect MIT to focus organically to improve its still under-rented portfolio (21% below market), delivering sector leading organic growth of 8.6% DPU CAGR over FY10E-FY12E.” 

The house maintains its Neutral call on valuation; “it remains our preferred yield play with 6.7% FY10E and 7.1% FY11E, underpinned by an underlying stickiness in its tenant base”. 

It revises FY10E/FY11E DPU by +3.7%/+2.5% and raises its target to $1.15 from $1.12. REIT is up 0.9% at $1.10.

 

SIA Engg - SIA Engineering off 1.0%; 4Q results in-line - OCBC

Stock Name: SIA Engg
Company Name: SIA ENGINEERING CO LTD
Research House: OCBC

SIA Engineering (S59.SG) off 1.0% at $4.18 after it posts 3Q revenue at $269.5 million, +11.6% on year and down 2.7% on quarter with net profit of $60.3 million, +7.7% on year and down 9.3% on quarter.



Despite the sequential declines, selling is light with only 116,000 shares traded, as the results were largely within expectations. 

OCBC says the results were “nearly spot on our forecasts” with revenue 1.3% above its view, net profit 0.7% ahead, while both 9-month numbers meet around 75% of its FY forecasts. 

“Going forward, management believes that the group will continue to benefit from the recovery in the aviation industry, which industry watchers believe has just embarked on its typical multi-year profit cycle,” the house says. 

“But some note that higher fuel prices and a potential recession in Europe could disrupt the smooth upward progression in profits.” It leaves FY11-FY12 forecasts largely unchanged, but tweaks fair value $4.30 vs $4.21, applying 16X FY12F EPS; “In view of the limited upside potential from here, we maintain our HOLD rating.”

Global Palm - OCBC initiates Global Palm Resources at Hold

Stock Name: Global Palm
Company Name: GLOBAL PALM RESOURCES HLGS LTD
Research House: OCBC

OCBC Investment Research starts Global Palm Resources Holdings (K6J.SG) at Hold recommendation with a $0.40 fair value estimate.



It says the stock looks fairly valued at the moment and has a slightly higher P/E of 16X compared with the sector average of 15.3X, looking at relative valuations. 

“Despite our relatively upbeat projections, we note that Global Palm has also run up with the rest of its plantation peers,” OCBC says. 

It sees an opportunity to revisit the rating if the group executes successfully on its expansion plans.

Kep Corp - Keppel Corp +2.3% after record 4Q earnings

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: Phillip Securities

Keppel Corp. (BN4.SG) is up 2.3% at $11.60 in active trade after its 4Q earnings beat the street, with net profit of $403 million, the first time the S$400 million mark has been breached.



Phillip Securities says the results were above its expectations; it maintains its Buy call and raises its fair value to $13.40 from $12.52 (on an increased valuation for O&M to 15X vs 13.5X FY11E). 

“We are optimistic on the outlook of Keppel for the next three years. Indeed, we expect Keppel to continue to win orders for the building of rigs from the major oil producers.” 



Says the company stands “a good chance of winning the bid to build some of the rigs from Petrobras.” The house adds though its property business may be affected by anti-speculation measures from the China and Singapore governments, “its Offshore & Marine, Infrastructure and Investments segments are likely to perform relatively well this year.” 

Immediate resistance is pegged at $11.70. 

KepLand - Deutsche Bank raises Keppel Land target to $5.08

Stock Name: KepLand
Company Name: KEPPEL LAND LIMITED
Research House: Deutsche Bank

Deutsche Bank raises Keppel Land (K17.SG) target price to $5.08 from $5.00 pegged to parity to RNAV and reflecting mark-to-market of KREIT (K71U.SG), higher-than-expected gain from the MFBC divestment, a higher-than-expected ASP for Lakefront and surplus on Nantong. 

The house keeps its Buy rating and says the developer produced “a solid set of FY10 results.” It adds, “offshore sales trends remain positive with over 4600 units sold in 2010 while office pre commitments continue to rise.” 

The house notes, acquisitions have picked up in 4Q in China and Vietnam “and we see scope for NAV expansion from a more active stance on capital deployment which could tighten discounts to NAV.” 

It says the 9 cents per share special dividend, in addition to the 9 cents final dividend was “a positive surprise.” 

Shares are +2.2% at $4.67.

KepLand - Keppel Land +2.0%; FY10 results positive - OCBC

Stock Name: KepLand
Company Name: KEPPEL LAND LIMITED
Research House: OCBC

Keppel Land (K17.SG) opens +2.0% at $4.66 after it reports an eight-fold on-year increase in 4Q net profit to $841 million, mainly due to a $363.8 million divestment gain from its stake in Marina Bay Financial Centre Phase 1 and fair value gains of $442.7 million from investment properties.



OCBC, which has its previous Buy rating and $4.50 fair value under review, says the FY10 results were positive, notwithstanding the bumper gains. 

It notes KPLD’s cash position surged from US$0.9 billion ($1.15 billion) in FY09 to US$1.6 billion for FY10 while net gearing remained at a relatively low 20%. 

“This balance sheet strength is a significant advantage as it gives KPLD flexibility to navigate an uncertain market and capitalize on attractive opportunities.” 

It adds “given the current policy overhang and uncertainty in its main markets, we like that KPLD has significant exposure to the recovering office sector in Singapore, a strong balance sheet and a clear strategy of seeking projects offering good risk-adjusted returns.” 

$4.70 may be a near-term cap. 

KepLand - Macquarie ups Keppel Land target to $4.81

Stock Name: KepLand
Company Name: KEPPEL LAND LIMITED
Research House: MacQuarie

Macquarie has raised its target price for Keppel Land (KLAN.SI), Singapore’s third-largest property developer, to $4.81 from $4.43 and kept its “neutral” rating.



Macquarie said Keppel Land’s core earnings for 2010 was $273.2 million, which were driven by residential projects in Singapore and China.

The company posted on Monday an eight-fold rise in fourth quarter net profit, helped by a $363.8 million one-time gain from the sale of its one-third interest in a large office project. It had a net profit of about $1.05 billion last year.

Given Keppel’s strategy of divesting income-producing office assets to its unit K-Reit Asia (KASA.SI), Macquarie expects the firm to announce further divestment plans over the next one-two years.

The brokerage also noted that Keppel’s low debt gearing of 20% could mean it may bid for more sites in China and Vietnam.

Shares of Keppel Land were up 2% at $4.66 at 10:36a.m., but have fallen 2.9% since the start of the year.

ComfortDelGro - ComfortDelGro Chengdu taxi news positive

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD
Research House: JP Morgan Chase

ComfortDelGro (C52.SG) is flat at $1.62 with 655,000 shares traded in a muted reaction to news its wholly-owned Chengdu subsidiary has been awarded 800 new taxi licences by the Chengdu Municipal Government, making it the second largest operator in Chengdu with 1050 taxis. 



JPMorgan, which has an Overweight rating and $2.00 target price says the addition of 800 taxis “implies an 8% increase in its China taxi fleet and is positive.” 

It adds, the latest move “is a strong demonstration of the company's capability to drive growth organically even in the absence of attractive M&A targets.” 

BNP Paribas, which rates the stock at Buy with a $1.98 target, says the new licenses carry a reasonable cost at CNY10,000 per license per year, “which we believe lowers the capex burden and enhances working capital management, and could potentially suggest even higher margins than its taxi operations in tier-one cities, a sentiment and fundamental positive.” 

Near-term resistance is tipped at $1.64. 

ComfortDelGro - ComfortDelGro Chengdu taxi news positive

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD
Research House: BNP Paribas

ComfortDelGro (C52.SG) is flat at $1.62 with 655,000 shares traded in a muted reaction to news its wholly-owned Chengdu subsidiary has been awarded 800 new taxi licences by the Chengdu Municipal Government, making it the second largest operator in Chengdu with 1050 taxis. 



JPMorgan, which has an Overweight rating and $2.00 target price says the addition of 800 taxis “implies an 8% increase in its China taxi fleet and is positive.” 

It adds, the latest move “is a strong demonstration of the company's capability to drive growth organically even in the absence of attractive M&A targets.” 

BNP Paribas, which rates the stock at Buy with a $1.98 target, says the new licenses carry a reasonable cost at CNY10,000 per license per year, “which we believe lowers the capex burden and enhances working capital management, and could potentially suggest even higher margins than its taxi operations in tier-one cities, a sentiment and fundamental positive.” 

Near-term resistance is tipped at $1.64. 

PLife REIT - Parkway Life Reit rated 'buy' by DBS

Stock Name: PLife REIT
Company Name: PARKWAYLIFE REIT
Research House: DBS Vickers

DBS Vickers Securities in a Jan 24 research report says: "4Q10 DPU of 2.38 cents (+16% y-o-y; 6% q-o-q) was within our expectations. Gross revenue grew 21% y-o-y to $21.5 million, driven largely by additional contributions from a total of 19 nursing homes acquired and higher revenue from Singapore properties.

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K-REIT - K-Reit Asia upgraded to 'neutral' by CIMB

Stock Name: K-REIT
Company Name: K-REIT ASIA
Research House: CIMB

CIMB in a Jan 21 research report says: "K-REIT completed an asset swap of Marina Bay Financial Centre Phase One (MBFC 1) and KTGE Tower and the acquisition of 77 King Street in Australia in December 2010. 4Q10 DPU of 1.7 cents broadly met our expectations and consensus, accounting for 26% of our FY2010 forecast.

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Q&M Dental - Q&M Dental Group rated 'buy' by CIMB

Stock Name: Q&M Dental
Company Name: Q & M DENTAL GROUP (S) LIMITED
Research House: CIMB

CIMB in a Jan 24 research report says: "Q&M is in a sweet spot with 37 clinics and two Dental Centres island-wide to tap the population's dentistry needs, while its two Dental Centres yield higher revenue intensity.

"Investors have over the last six months taken over two healthcare groups (Parkway and Thomson Medical) at high premiums. Like Q&M, these names have strong brand equities, solid patient volumes, revenue & cash flows, and overseas ventures.

"Target price of 83 cents, based sum-of-the-parts valuation. Q&M offers investors value at 15x CY12 P/E (cheaper than peers) against our 3-year core earnings CAGR forecast of 30%. We like it for its strong recurring earnings in the domestic market and international expansion plans. BUY (initiating coverage)."

FirstRes - CPO prices to stay firm; UOB likes mid cap plays

Stock Name: FirstRes
Company Name: FIRST RESOURCES LIMITED
Research House: UOB KayHian

UOB KayHian says firm CPO prices are likely to stay until mid-2011 as the peak production cycle is likely to be delayed to June/July vs earlier expectations of March/April.



The house says this is due to a lack of moisture after less-than-normal monsoon rainfall, while oil palm trees look stressed. It expects 2011 new add from Malaysia of 600,000-700,000 tons vs 800,000 tons earlier.

“This is new development that we think the CPO market has yet to factor in” and which could support CPO prices above MYR3300/ton to end-2Q11. 

Despite bullish CPO prices, it says plantation stocks are underperforming “as this sector is very well owned by investors.” 

Still, the house likes mid-cap names, including First Resources (EB5.SG), rated Buy with a $1.86 target and Kencana Agri (F9M.SG), Buy with a $0.53 target. Shares are +0.7% at $1.44 and +1.1% atS$0.445 respectively. Sell-rated Golden Agri (E5H.SG) is off 0.7% at $0.725 while Hold-rated Indofod Agri (5JS.SG) is flat at $2.60. 

KencanaAgri - CPO prices to stay firm; UOB likes mid cap plays

Stock Name: KencanaAgri
Company Name: KENCANA AGRI LIMITED
Research House: UOB KayHian

UOB KayHian says firm CPO prices are likely to stay until mid-2011 as the peak production cycle is likely to be delayed to June/July vs earlier expectations of March/April.



The house says this is due to a lack of moisture after less-than-normal monsoon rainfall, while oil palm trees look stressed. It expects 2011 new add from Malaysia of 600,000-700,000 tons vs 800,000 tons earlier.

“This is new development that we think the CPO market has yet to factor in” and which could support CPO prices above MYR3300/ton to end-2Q11. 

Despite bullish CPO prices, it says plantation stocks are underperforming “as this sector is very well owned by investors.” 

Still, the house likes mid-cap names, including First Resources (EB5.SG), rated Buy with a $1.86 target and Kencana Agri (F9M.SG), Buy with a $0.53 target. Shares are +0.7% at $1.44 and +1.1% atS$0.445 respectively. Sell-rated Golden Agri (E5H.SG) is off 0.7% at $0.725 while Hold-rated Indofod Agri (5JS.SG) is flat at $2.60. 

SuntecReit - Suntec REIT off 0.6%; 4Q revenue declines

Stock Name: SuntecReit
Company Name: SUNTEC REAL ESTATE INV TRUST
Research House: OCBC

Suntec REIT (T28U.SG) is off 0.6% at $1.57 after posting 4Q10 gross revenue of $61.41 million, down 0.6% on-year and off 2.9% on-quarter; its net property income was flat on-year and down 6.7% on-quarter at $47.2 million, while DPU fell 19.8% on-year and 7.4% on-quarter to 2.316 cents. 

The REIT says the fall in revenue is due to lower retail revenue. OCBC, which maintains its Hold call, revises fair value to $1.60 from $1.55; “we are overall positive on the office sector recovery, and confident of the manager’s expectation that negative rental reversions for Suntec’s office portfolio will bottom out by end 2011. However, we continue to have lingering concerns about Suntec’s retail portfolio.” 

The house notes, 25.5% of retail portfolio NLA is expiring in 2011, followed by 30.3% in 2012, 27% in 2013. “We still think that the MBFC1 acquisition will help to boost the proportion of office to retail mix for Suntec, and help mitigate some of the top-line effects of thinning retail traffic, but this is, nonetheless, still a temporary fix.”

Kep Corp - Keppel off 0.4%; no concern over cancellation - DMG

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: DMG

Keppel Corp. (BN4.SG) is off 0.4% at $11.32, despite announcing contracts for two newbuild jackup rigs from Clearwater Capital for US$360 million ($462.1 million); it also announced the termination of a US$152 million drillship upgrade contract from Noble.



DMG says the cancellation with Noble is “not a cause for concern” as it was due to a change in contract status with its end client, Petrobras. The house keeps its Buy rating and $12.00 target on Keppel, and estimates net outstanding orderbook rose $270 million to $5.5 billion with deliveries stretching up to end-2013. 

Separately, OCBC notes that Clearwater is an investment firm, not a rig operator or oil company: “This is the second announcement by Keppel relating to orders secured by an investment firm in the last three months and underscores the confidence the investment community has in the offshore rig market.” 

The house maintains its Buy rating and $12.50 fair value estimate. SembCorp Marine (S51.SG) is also down 0.4% at $5.12, perhaps reflecting Friday's slight drop in oil prices, which normally weighs on rig builders.

Kep Corp - Keppel off 0.4%; no concern over cancellation - DMG

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: OCBC

Keppel Corp. (BN4.SG) is off 0.4% at $11.32, despite announcing contracts for two newbuild jackup rigs from Clearwater Capital for US$360 million ($462.1 million); it also announced the termination of a US$152 million drillship upgrade contract from Noble.



DMG says the cancellation with Noble is “not a cause for concern” as it was due to a change in contract status with its end client, Petrobras. The house keeps its Buy rating and $12.00 target on Keppel, and estimates net outstanding orderbook rose $270 million to $5.5 billion with deliveries stretching up to end-2013. 

Separately, OCBC notes that Clearwater is an investment firm, not a rig operator or oil company: “This is the second announcement by Keppel relating to orders secured by an investment firm in the last three months and underscores the confidence the investment community has in the offshore rig market.” 

The house maintains its Buy rating and $12.50 fair value estimate. SembCorp Marine (S51.SG) is also down 0.4% at $5.12, perhaps reflecting Friday's slight drop in oil prices, which normally weighs on rig builders.

CapitaMall - IIFL upgrades CapitaMall Trust to Buy vs Add

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST
Research House: IIFL

IIFL upgrades CapitaMall Trust (C38U.SG) to Buy from Add, and raises its target price to $2.38 from $2.32, after the REIT reported inline FY10 results.



“We like its robust occupancy rate (99.3%) and steady organic growth via strong reversions (6.5% in FY10, another 3%-5% per annum in FY11-FY12) and Asset Enhancement Initiatives in JCube and Atrium@Orchard,” it says; the latter project is expected to generate an additional S$20 million in rental income in 2013, which translates to 10% ROI. 

The house reduces DPU estimates by around 2% in 2011 due to the expected loss incurred on convertible bonds put. “However, we have upgraded DPU estimates for FY12-FY15E on the back of lower interest expense (lower debt level) and incremental income from Atrium@Orchard.” 

“CMT is our top pick, offering 5.1% FY11 DPU yield and 5.9% DPU CAGR from FY10-FY15E,” it adds.

The REIT is +1.1% at $1.93.

Q&M Dental - Stocks-up on bargain hunting at midday, Golden Agri leads gains

Stock Name: Q&M Dental
Company Name: Q & M DENTAL GROUP (S) LIMITED
Research House: CIMB

Singapore shares were 0.47% higher at Monday’s midday break, in line with other Asian bourses as investors bought back shares after last week’s sell-off. Palm oil firm Golden Agri-Resources (GAGR.SI) rose in active trading.



As the lunch break, the Straits Times Index (STI) <.FTSTI> was up 14.89 points at 3,199.49. The total value of shares traded in the morning session was $562.1 million, down from $789.8 million on Friday.

"The STI is rebounding after being oversold in several bad days of trading last week, and investors are buying back some of their short positions," said Carey Wong, an investment analyst at OCBC Investment Research.

 

Wong said he expects the STI to consolidate in the in 3,180-3,220 range this afternoon, and to trade sideways this week ahead of the U.S. Federal Open Market Committee’s meeting and weekly jobless claims data.  

Golden Agri-Resources jumped as much as 4.2% on Monday as palm oil futures rose, boosted by expectations of tight supply and stronger demand, traders said.

As of midday, Golden Agri shares were up 3.5% at $0.735 with over 55.1 million shares changing hands.

Malaysian palm oil futures rose to a near two-week high on Friday as traders cited strong export data amid concern that supplies will struggle to keep pace with robust demand.

“Palm oil stocks are likely to continue inching upwards as palm oil prices are pretty stable, and demand for crude palm oil typically rises nearer to the Chinese New Year holiday because of the festivities,” said Wong.  

Palm oil firm First Resources (FRLD.SI) also rose 1.4% to $1.43 with over 4.5 million shares traded.

Shares of Singapore dental firm Q&M Dental Group (QMDT.SI) rose 4.7% to $0.56 after CIMB initiated coverage of the firm with a “buy” rating. 

CIMB said it expects Q&M’s core earnings to grow by 30% per annum on average over the next three years, and set a target price of $0.83.

Q&M Dental - CIMB starts Q&M Dental at Buy; $0.83 target

Stock Name: Q&M Dental
Company Name: Q & M DENTAL GROUP (S) LIMITED
Research House: CIMB

CIMB initiates Q&M Dental (JW8.SG) at Buy with a $0.83 SOTP-based target price. “Q&M offers investors value at 15X CY12 P/E (cheaper than peers) against our 3-year core earnings CAGR forecast of 30%. We like it for its strong recurring earnings in the domestic market and international expansion plans.” 

It says catalysts could include the opening of more clinics, higher charges, expansion through M&A, JVs and/or strategic alliances and a potential listing of its overseas dental business. 

It notes, dentistry has one of the most lucrative revenue intensity in healthcare business, dental expenditure is necessary, and dental charges are not the lowest of all healthcare consumption. 

“Q&M is in a sweet spot with 37 clinics and two Dental Centres island-wide to tap the population’s dentistry needs, while its two Dental Centres yield higher revenue intensity.” 

Shares are +4.7% at $0.560.

MapletreeLog - Citigroup cuts Mapletree Logistics Trust to Hold

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST
Research House: Citigroup

Citigroup downgrades Mapletree Logistics Trust (M44U.SG) to Hold from Buy; the house says MLT has been one of the best performing S-REITs in the past year, up over 30% and has outperformed the STI by close to 20%.



“While we remain positive on its outlook, we are downgrading the stock to Hold on valuation grounds.” Citi raises it target to $1.00 from $0.92 to reflect both the improved rental outlook as well as potential acquisitions. 

It says 4Q results were in line, with DPU flat on-quarter at 1.55 cents; it also says FY10 DPU amounted to 6.09 cents, in line with the house's and consensus DPU estimate of 6.1 cents. 

It also adds, high occupancy was sustained with improving tenancy in Malaysia up four percentage points to 99%. MLT is off 1.0% at $0.985.

M1 - M1 rated 'hold' by Phillip Securities

Stock Name: M1
Company Name: M1 LIMITED
Research House: Phillip Securities

Phillip Securities Research in a Jan 20 research report says: "M1 reported FY2010 operating revenue of $979.2 million (+25.3% y-o-y) and net profit of $157.1 million (+4.5% y-o-y). It announced a final dividend of $0.077 and special dividend of $0.035 per ordinary share for FY2010.

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M1 - UBS ups M1 target to $2.48, keeps at Neutral

Stock Name: M1
Company Name: M1 LIMITED
Research House: UBS

UBS raises M1’s (B2F.SG) target to $2.48 from $2.17, and keeps its Neutral rating. It says 4Q10 results were in line with expectations, with operating profit at $47 million, and net profit at $38 million.



“While revenue was higher than expected due to higher handset sales, this was offset by matching handset cost.” The house tips a 6.0% net profit growth in 2011 versus 2010. 

It notes, M1 declared a 2010 special DPS of 3.5 cents, and estimates a 2011 regular DPS of 14.9 cents, and a special DPS of 3.5 cents. “This implies 7.4% yield on the current share price. However, if no special DPS is declared in 2011, the yield would fall to 6.0%. As M1 shares have historically traded in the range of 6.0%-10% yield, we think the special dividends are needed to continue to provide support to the current share price.” 

It adjusts 2011/2012 EPS forecast to $0.186/$0.198 from $0.189/$0.197.

The shares are off 0.4% at $2.45.

TigerAir - Macquarie downgrades Tiger Air to 'underperform'

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: MacQuarie

Macquarie has downgraded Singapore budget carrier Tiger Airways (TAHL.SI) to “underperform” from “neutral”, and lowered its target price to $1.50 from $1.80.



Macquarie said Tiger Airways is looking fully valued compared to its peers and the firm may be more sensitive to the rise in jet fuel prices.

The brokerage said Tiger does not have fuel surcharges like its competitor Singapore Airlines (SIA) (SIAL.SI), and the firm’s strategy of proactively managing ticket pricing is unlikely to be a large differentiator.



The risk related to retaining pilots is also higher for Tiger compared to SIA as Tiger is likely to have a tighter cost base and fewer resources to get spare pilots when there is a sudden pilot shortage, Macquarie added.



At 9:09 a.m., Tigers shares were down 0.6% at $1.68 on a volume of 32,000 shares.





 

CoscoCorp - Phillip ups target price for Cosco Corp to $2.68

Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
Research House: Phillip Securities

Phillip Securities has raised its target price for Singapore-listed shipbuilder Cosco Corp (COSC.SI) to $2.68 from $2.32 and maintained its “buy” rating.



According to DBS Vickers, Cosco Corp could benefit from the restructuring of its parent Cosco Group, which may inject two of its shipbuilding assets into the Singapore-listed unit.

But Cosco Corp said in a filing to the Singapore Exchange on Thursday that it is not in talks with any party for an asset injection.



Phillip Securities said that despite Cosco Corp’s announcement, there is a possibility of restructuring that will benefit Cosco Corp because the firm will be bigger in size and gain a better position to compete with other shipyards globally.



The time is also appropriate as Cosco Corp has been reporting better quarterly financial results in its 2010 fiscal year, on top of winning contracts worth $2.7 billion in 2010 for dry bulk vessels and oil rigs, the brokerage added.



“We expect Cosco to win new orders of $3.8 billion in 2011. At the same, it has been working to reduce the time required to build new vessels, which should improve its gross profit margin,” Phillip said in a report.



However, the brokerage cautioned that Cosco Corp faces the problem of an appreciation of the yuan against the US Dollar as most of its contracts are in USD, adding that labour and steel costs have also increased.



At 09:02 a.m., Cosco Corp shares were up 0.4% at $2.34 on a volume of 205,000 shares.

ST Engg - ST Engineering +0.6% on 4Q contracts worth $320m

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD
Research House: OCBC

ST Engineering (S63.SG) is up 0.6% at $3.31 after it says its aerospace arm clinched around $320 million worth of new contracts in 4Q.



The company says the contracts, which range from 3-12 months in duration, include new components and engine maintenance contracts, as well as airframe contracts involving heavy maintenance checks, passenger-to-freighter and passenger-to-passenger/cargo conversions and interior refurbishments. 

The company does not expect these to have any material impact on NTA, or EPS for the current FY. OCBC says ST Engg’s Aerospace business contributed 34% of 9M10 revenue of $4.37 billion, and made up 42% of PBT of $433.9 million. 

“STE currently has an order book of some $10.8 billion (at 30 Sep. 2010), with $1.2 billion expected to be delivered in 4Q10,” it says. 

The house puts its Buy rating, and $3.68 fair value under review due to a change of analyst. ST’s stock rose 2.0% on November 9, after announcing 3Q contracts worth around $370 million. N/T cap is tipped at $3.39.

Sabana REIT - HSBC starts Sabana at Overweight, $1.12 target

Stock Name: Sabana REIT
Company Name: SABANA SHARI'AH COMPLIANT REIT
Research House: HSBC

HSBC starts Sabana Shari’ah Compliant REIT (M1GU.SG) at Overweight with a $1.12 target price; house likes Singapore’s first Shari’ah compliant REIT for its steady income profile and current pricing: “While we project flattish DPU over the next three years (distribution yield: 8.2%), we note that Sabana is trading at a 10% discount to our diluted FY11 NAV of $1.11 and at a 12% discount to our DDM valuation of $1.14, suggesting valuations are attractive.” 

The price target implies a 12-month potential return of 20% including distributions. It says risks are; master lessees defaulting on their lease obligations, Sabana being unable to exercise options to renew land leases and Shari’ah compliance-related risks. “Higher interest rates are a generic risk, which we see as less likely in the near term,” it says. 

REIT is flat at $1.00. 

RafflesEdu - Raffles Education +4.7%; BNP bullish; keeps Buy

Stock Name: RafflesEdu
Company Name: RAFFLES EDUCATION CORP LIMITED
Research House: BNP Paribas

Raffles Education (E6D.SG) is +4.7% at $0.335, taking its year-to-date run up to 31.4%; with 34 million shares traded it is the third most active stock today.



BNP Paribas analyst Brenda Lee says the recent rally has come on the back of potential positive news flow from the Oriental University City (OUC) development after RLS said it had identified a property developer to co-develop the OUC land to monetise its $394 million investment. 

“Should the company successfully develop the existing 280,000 sqm residential site within OUC, we believe it should be able to generate substantial investment returns,” Lee says. 

She notes, RLS estimates the residential property development can fetch CNY7,000/sqm, on land cost of $94/sqm (around CNY480/sqm) at a development cost of CNY3000-3500/sqm. 

Lee has not included any potential property development earnings from OUC but says “earnings growth potential looks skewed to the upside.” House is revisiting its estimates; it has a Buy rating on the stock with a $0.33 target. $0.350 is likely the near-term cap. 

CapitaMall - Kim Eng reiterates CapitaMall Trust at Buy

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST
Research House: Kim Eng

Kim Eng reiterates CapitaMall Trust (C38U.SG) at a Buy with a DDMderived target of US$2.32 ($3.00) after the REIT Thursday declared a FY10 DPU of 9.24 Singapore cents on the back of 5.9% on-year growth in net property income.



“With forward yields of at least 5.2% and rising, CMT could be an alternative inflation hedge,” the house says. It adds, like CapitaCommercial Trust (C61U.SG), CMT has a high cash position of US$712 million ($916.8 million). 

“However, unlike CCT, we see visibility in the deployment of the cash. This will include the potential early redemption of Convertible Bonds amounting to $578 million, and the capex for the asset enhancement initiatives (AEI) for The Atrium, budgeted at $150 million.” 

It adds, with the prospects of DPU boost in 2012 and 2013 following the completion of AEI works at JCube and The Atrium respectively, CMT is trading at attractive valuations. The REIT is flat at $1.89.

MapletreeLog - Mapletree Logistics had solid 2010; Buy - RBS

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST
Research House: RBS

RBS says Mapletree Logistics Trust (M44U.SG) had “a solid 2010” with FY10 distributable income growth of 10.3% on-year in line with expectations.



“The growth is driven by contributions from new acquisitions made during the year (MLT expanded its portfolio by acquiring 14 assets worth about $500 million, increasing its portfolio size to $3.46 billion). We expect MLT to utilise its ample debt headroom ($470 million based on a gearing of 45%) to acquire accretively in 2011.” 

The house keeps a Buy recommendation, with a $1.11 target price. It says, MLT is currently trading at 17% premium to its book value compared to the industrial REIT average of 23.5%. 

It adds, “we are positive on the industrial REIT sector on the back of the stellar growth of the Singapore economy.” 

Shares are up 1.0% at $0.99.

Sunshine - China Sunsine Chemical Holdings rated 'buy' by Phillip Securities

Stock Name: Sunshine
Company Name: SUNSHINE HOLDINGS LIMITED
Research House: Phillip Securities

Phillip Securities Research in a Jan 21 research report says: "9M10 revenue improved 39.8% y-y while net profit registered an improvement of 50.7% y-o-y. In view of the buoyant performance of the automobile industry, we believe Sunsine should maintain its momentum for 4Q10. The main product of the company is the rubber accelerator which accounts for close to 90% of revenue.

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PEC - PEC downgraded to 'hold' by Phillip Securities

Stock Name: PEC
Company Name: PEC LTD.
Research House: Phillip Securities

Phillip Securities Research in a Jan 20 research report says: "PEC announced that they had been awarded a $78 million EPC contract to provide pipe rack and utilities piping reticulation system for Tuas Power Utilities (TPU). With the contract win, we estimate that PEC's current order book should be worth approximately $245 million.

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Longcheer - Longcheer Holdings downgraded to 'sell' by DBS

Stock Name: Longcheer
Company Name: LONGCHEER HOLDINGS LIMITED
Research House: DBS Vickers

DBS Vickers Securities in a Jan 20 research report says: "Our channel checks indicated that in Nov/Dec, the India handset market was plagued with a severe stock pile in the feature phone segment (Longcheer's key products) due to: (1) weak sell through during Deepavali; and (2) smartphone's cannibalisation of the low to mid range feature phones.

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PacShipTr US$ - Pacific Shipping Trust rated 'buy' by DBS

Stock Name: PacShipTr US$
Company Name: PACIFIC SHIPPING TRUST
Research House: DBS Vickers

DBS Vickers Securities in a Jan 20 research report says: "Revenue and operating profit in 4Q10 came in 2% q-o-q and 8% y-o-y lower, owing to more off-hire days arising from repairs to the 2 time-chartered vessels.

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SembMar - Sembcorp Marine rated 'neutral' by DMG

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: DMG

DMG & Partners Securities in a Jan 17 research report says: "Sembcorp Marine (SMM) has won a shipbuilding and three upgrading jobs valued at $215 million for various customers. We estimate that total outstanding orderbook climbed to $5.7 billion, with deliveries extending up to end 2013 and is 1.4x annualised FY10 revenue.

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CapitaMall - Near term headwinds for CapitaMall units - JPMorgan

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST
Research House: JP Morgan Chase

CapitaMall Trust (C38U.SG) is down 1.1% at $1.88, in line with the broad market after earlier posting 4Q DPU of 2.36  cents, down 1.4% on year and flat on quarter with net property income at $101.5 million, +5.7% on year, also flat on quarter. 

JPMorgan, which has a Neutral rating and $2.00 target price, says the results were in line, and that outperformance is unlikely with near-term headwinds; “While rental growth is likely to remain positive, DPU growth for 2011 should be flattish as a result of one-off charges from CB redemption. With the stock already trading at 4.9% yield and 1.2x P/B, we believe that CMT is unlikely to outperform the sector.” 

The house adds that the strong EFR pipeline for the sector, especially a number of IPOs in the retail space expected in 1H11, “will likely add pressure on CMT’s share price performance in the near term.” Units unlikely to fall below $1.87 intraday low. 

UOL - UOL Group rated 'buy' by OCBC

Stock Name: UOL
Company Name: UOL GROUP LIMITED
Research House: OCBC

OCBC Investment Research in a Jan 19 research report says: "UOL announced that it has successfully tendered for the Lion City Hotel Site and the adjoining Hollywood Theatre Site for $313 million. We estimate that this project has a net present value of $62 million or $0.08 per share.

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Tat Hong - Tat Hong Holdings rated 'hold' by OCBC

Stock Name: Tat Hong
Company Name: TAT HONG HOLDINGS LTD
Research House: OCBC

OCBC Investment Research in a Jan 19 research report says: "The floods in Australia have taken a toll on Tat Hong Holdings (Tat Hong), which announced that one of its seven branches in Queensland was evacuated on 11 Jan as a result of the floods.

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Sinopipe - Sinopipe Holdings rated 'increase exposure' by SIAS

Stock Name: Sinopipe
Company Name: SINOPIPE HOLDINGS LIMITED
Research House: SIAS

SIAS Research in a Jan 19 research report says: "Sinopipe Holdings manufactures, distributes and installs plastic pipe and fittings. Positive industry factors such rapid urbanisation of China and superior properties of plastics over other materials are impelling the demand for plastic pipes.

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SIA - Singapore Airlines rated 'buy' by Kim Eng

Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
Research House: Kim Eng

Kim Eng Research in a Jan 18 research report says: "SIA's December passenger load factors dipped 3.6 percentage points y-o-y but still remained healthy at 80.7. Cargo continued to outperform expectations, with load factor holding steady at 63.5.

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M1 - M1 off 2.4%; 4Q earnings almost spot on - OCBC

Stock Name: M1
Company Name: M1 LIMITED
Research House: OCBC

M1 (B2F.SG) down 2.4% at $2.44 with investors likely taking profit after the telco posted its 4Q results Wednesday, with the stock up 11.4% since the start of October, outperforming peers on the view it will benefit most from Singapore’s NBN rollout.



OCBC, that has a Buy rating, and tweaks fair value to $2.79 from $2.70 on M1’s lower capex guidance, says the results were “almost spot on our expectations.” 

Revenue climbed 20.9% on-year, 6.4% on-quarter to $261.4 million, just 1.1% above its forecast, "buoyed by the continued good take-up for smartphones."

Net profit came in at $37.5 million, +0.8% on-year but off 4.8% on-quarter, 1.1% shy of house’s estimate, due to higher subsidies for smartphones, higher year-end promotional activities. 



It adds, M1 is guiding for earnings growth in 2011, “fixed network services tend to come with lower profit margins.” Thus it cuts FY11 earnings estimate by 2.0% after bumping up revenue forecast by 3.4%, and continues to like M1 for "its defensive earnings and attractive dividend yield." $2.40 is a likely support.

SembMar - SembMarine off 1.5%; orders within expectations - DMG

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: DMG

SembCorp Marine (S51.SG) is down 1.5% at $5.27 despite announcing that Atwood Oceanics has exercised the first of its three options to build a newbuild jackup rig with SMM’s PPL shipyard, worth $182 million. 

“The broad market is down, so it’s no surprise that the stock is down, the orders were within most of the market expectation and everybody is expecting more jack up orders to still come in,” says DMG analyst Jason Saw. 

He adds, with this option, total new orders for 2011 climb to $450 million, 10% of his full-year estimate of $4.5 billion; he estimates total outstanding orderbook at $5.9 billion. 

“We expect all the drillers (Atwood, Seadrill and Noble) to exercise remaining ten options for newbuild jackup rigs due to higher charter rates and return for premium rigs compared to normal spec jackup rigs.” He makes no changes to EPS estimates, and maintains a Neutral call with a $5.30 target. The orderbook suggests a $5.23 support. 

Ascendasreit - HSBC starts Ascendas REIT at Overweight

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST
Research House: HSBC

HSBC starts Ascendas REIT (A17U.SG) at Overweight, with a $2.36 price target. The house says A-REIT is the “leader of the industrial pack.” It adds, A-REIT has a stable income profile from diversified exposure across industrial property types, tenants and lease tenures. 

It says internal and external growth engines will drive distribution, while the units currently represent an “attractive entry point for Singapore's largest industrial REIT.” A-REIT is off 1.4% at $2.12, roughly in line with the STI’s 1.2% fall.

DBS - RBS upgrades DBS to Buy; bad news priced in

Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD
Research House: RBS

RBS upgrades DBS Group (D05.SG) to Buy from sell, and raises its target to S$16.50 from S$11.50. It says “DBS’s shares have been broadly flat for about a year now. As is well established, this reflects relatively weak underlying pre-impairment profit delivery (3.7% for FY10F and minus 0.6% for FY11F) on the back of historically low Sibor.” 

But the house says at 11.7X FY12F P/E and 1.2X FY12F P/B, “both broadly mean valuation levels, most of the low Sibor effect seem to us to be in the price.” RBS expects a “relatively powerful” recovery in pre-impairment profit growth to 11.8% FY12F, driven by a combination of higher rates, continued strong loan growth and moderating cost pressures. 

It says broad expectations of a recovery in U.S. rates are getting nearer, which is not reflected in the price, while the market “seems to attach little or no value as yet to the internal restructuring that is taking place at DBS.”

Shares are up 0.7% at $14.86.

Tat Hong - OCBC maintains Tat Hong Holdings at Hold

Stock Name: Tat Hong
Company Name: TAT HONG HOLDINGS LTD
Research House: OCBC

OCBC Investment Research maintains Hold recommendation on Tat Hong Holdings (T03.SG) and $0.99 fair value estimate, despite negative impact of floods on some of the heavy machinery group’s business in Australia. 

It notes that floods are “a double-edged sword” for the group; some of Tat Hong’s business has been transferred to its head office and equipment moved to higher ground; stock vulnerable to impairment risks and “insurance claims may not fully cover damages resulting from the floods.” However, it says post-flood construction may boost demand for Tat Hong’s cranes. 

“We believe that Australia’s floods may be a near-term negative, but medium-term positive event for Tat Hong.” OCBC notes Australia accounts for 60% of Tat Hong’s group revenue but less than 5% of its cranes are located in flood-affected areas.

Stock is +1.1% at $0.955.

SGX - Phillip lowers target price for SGX to $9.88

Stock Name: SGX
Company Name: SINGAPORE EXCHANGE LIMITED
Research House: Phillip Securities

Phillip Securities has lowered its target price for Singapore Exchange (SGXL.SI), Asia’s second-largest listed bourse operator, to $9.88 from $10.50 but maintained its “buy” rating.



SGX earned $81.7 million adjusted net profit in its fiscal second quarter ended December compared with $71.8 million a year ago. If transaction costs related to the merger with ASX were included, net profit was $74.2 million, little changed from the fiscal first quarter.

Phillip said that while SGX generally has a set of positive results, it was disappointed by the bourse operator’s securities daily average value and trading volume in American Depository Receipts, which have fallen below its estimates.



The brokerage said that it had lowered its earnings per share estimates for SGX to $0.33 from $0.39, adding that further disappointments to its forecast will result in a rating downgrade.



However, Phillip said the expected listing of Hutchison Port on SGX, together with Prudential and Global Logistic Properties (GLPL.SI), show that SGX is actively courting big names and issuers.



Hutchison Whampoa (0013.HK) plans to spin off its holdings in two ports assets, a move expected to raise US$6 billion ($7.7 billion) in what could be Southeast Asia’s largest-ever stock offering.



SGX also said on Wednesday it will launch the world’s fastest trading engine, called SGX Reach, on Aug 15 this year.



At 9:13 a.m., SGX shares were up 1.1% on a volume of 525,000 shares.

UOB - RBS keeps UOB at Buy; preferred Singapore bank

Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: RBS

RBS keeps UOB (U11.SG) at Buy, raising its target price to $23.00 from $22.00. It says “UOB’s management was too conservative going into 2010. It lagged both DBS and OCBC on loan growth,” but management recently adopted a more aggressive stance and loan growth could match its peers in FY11. 

Notes profitability remains strong and likes the bank’s high asset yield (3.78% at 9M10), “which we believe should partly cushion the negative impact of low Sibor as long as assets continue to grow.”

Says though leverage is only 10X (FY10F), “the bank earns the highest ROE among its peers under our coverage and the highest ROA. We think this stems from the bank’s high-margin business in Indonesia, its focus on SME and credit card businesses, and its disciplined cost control.” 

The house adds UOB’s share price has lagged OCBC’s over the past 12 months, opening up a relatively wide valuation gap which isn’t justified. UOB is +0.1% at $19.40. 

 

OCBC Bk - RBS upgrades OCBC to Buy; diverse earns drivers

Stock Name: OCBC Bk
Company Name: OVERSEA-CHINESE BANKING CORP
Research House: RBS

RBS upgrades OCBC (O39.SG) to Buy from Hold, and raises its target to $12 from $11; the house continues to like OCBC, “mainly for its diverse earnings drivers.” 

It says these include 

1. the recent acquisition of ING Private Bank, “which gives OCBC a good platform to grow its premium banking business;” 


2. the insurance business, which continues to grow strongly and offers an additional outlet for cross-sales; 


3. good regional footprint in Indonesia, Malaysia and 


4. its gradually growing SME business in Singapore. 

“In addition to these...we also like OCBC's solid risk management, with its historical NPL ratio the lowest in the Singapore banking sector under our coverage.” 

It adds, while the outlook for FY11F pre-impairment profit growth remains weak (5.6% on-year) vs peers, “we expect a sharp rebound in FY12 to 14.6%.”

Its share rise 0.6% to $10.16.

DBS - JP Morgan raises DBS target to $24 from $18

Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD
Research House: JP Morgan Chase

JP Morgan raised its target price for DBS Group (DBSM.SI) to $24 from $18 and kept its overweight rating.



JP Morgan said it expects the bank’s low return on equity to reverse over the next three years and rise to 14% in 2013, from 9% in 2009.

DBS is on track to deliver 27% core earnings growth in 2010, and its net interest margin is also expected to increase this year due to a steeper yield curve, JP Morgan said in a report.

"We believe this time it’s different for DBS M&A, as there appears to be greater clarity within top management that value-eroding transactions can lead to a multi-year stock de-rating," the brokerage said.

By 10:48 a.m, DBS shares were up 0.8% at $14.88 and have gained 3.9% so far this year.

GoldenAgr - Citi Ups palm planters targets; likes Indofood

Stock Name: GoldenAgr
Company Name: GOLDEN AGRI-RESOURCES LTD
Research House: Citigroup

Citigroup says “CPO prices will remain well-supported over the near-term, as 1Q is typically a seasonally weak production period, exacerbated by wet weather affecting harvesting in parts of Malaysia and Indonesia.” It says other positives for CPO include firm soybean prices (weaker production outlook), higher oil prices (raised its estimate last week to $90/bbl from $85/bbl). 

It now forecasts CPO prices at average $1050/ton, US$1000/ton and $950/ton in 2011, 2012, and over the long term vs previous estimate of $870/ton for 2011 and beyond. 

It raises Golden Agri-Resources (E5H.SG) target to $0.95 from $0.82, keeps Buy, as “prospects remain bright;” ups FY10-FY12 earnings estimates by 8.6%-25.8%.

Ups Indofood Agri (5JS.SG) target to $3.54 from $3.15, keeps Buy, remains optimistic on its growth prospects in 2011; adjusts earnings by minus 4.2 to +15.7% for FY10-FY12E. 

Tweaks Wilmar (F34.SG) target to $6.08 from $6.06, keeps Hold, increases FY10-12E net profit assumptions by 1.0%-4.0%. Golden Agri +1.3% at $0.77, Indofood +0.4% at $2.84, Wilmar +0.4% at $5.68. 

IndoAgri - Citi Ups palm planters targets; likes Indofood

Stock Name: IndoAgri
Company Name: INDOFOOD AGRI RESOURCES LTD.
Research House: Citigroup

Citigroup says “CPO prices will remain well-supported over the near-term, as 1Q is typically a seasonally weak production period, exacerbated by wet weather affecting harvesting in parts of Malaysia and Indonesia.” It says other positives for CPO include firm soybean prices (weaker production outlook), higher oil prices (raised its estimate last week to $90/bbl from $85/bbl). 

It now forecasts CPO prices at average $1050/ton, US$1000/ton and $950/ton in 2011, 2012, and over the long term vs previous estimate of $870/ton for 2011 and beyond. 

It raises Golden Agri-Resources (E5H.SG) target to $0.95 from $0.82, keeps Buy, as “prospects remain bright;” ups FY10-FY12 earnings estimates by 8.6%-25.8%.

Ups Indofood Agri (5JS.SG) target to $3.54 from $3.15, keeps Buy, remains optimistic on its growth prospects in 2011; adjusts earnings by minus 4.2 to +15.7% for FY10-FY12E. 

Tweaks Wilmar (F34.SG) target to $6.08 from $6.06, keeps Hold, increases FY10-12E net profit assumptions by 1.0%-4.0%. Golden Agri +1.3% at $0.77, Indofood +0.4% at $2.84, Wilmar +0.4% at $5.68. 

Wilmar - Citi Ups palm planters targets; likes Indofood

Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED
Research House: Citigroup

Citigroup says “CPO prices will remain well-supported over the near-term, as 1Q is typically a seasonally weak production period, exacerbated by wet weather affecting harvesting in parts of Malaysia and Indonesia.” It says other positives for CPO include firm soybean prices (weaker production outlook), higher oil prices (raised its estimate last week to $90/bbl from $85/bbl). 

It now forecasts CPO prices at average $1050/ton, US$1000/ton and $950/ton in 2011, 2012, and over the long term vs previous estimate of $870/ton for 2011 and beyond. 

It raises Golden Agri-Resources (E5H.SG) target to $0.95 from $0.82, keeps Buy, as “prospects remain bright;” ups FY10-FY12 earnings estimates by 8.6%-25.8%.

Ups Indofood Agri (5JS.SG) target to $3.54 from $3.15, keeps Buy, remains optimistic on its growth prospects in 2011; adjusts earnings by minus 4.2 to +15.7% for FY10-FY12E. 

Tweaks Wilmar (F34.SG) target to $6.08 from $6.06, keeps Hold, increases FY10-12E net profit assumptions by 1.0%-4.0%. Golden Agri +1.3% at $0.77, Indofood +0.4% at $2.84, Wilmar +0.4% at $5.68. 

CoscoCorp - Cosco Corp up on possible stakes injection

Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
Research House: DBS Vickers

Shares of Cosco Corp (COSC.SI), a Singapore-listed Chinese shipbuilder, rose as much as 4.7% on Wednesday after DBS Vickers said the firm stands to benefit from the potential injection of shipbuilding stakes by its parent.



DBS Vickers raised its target price on Cosco Corp to $3.03 from $2.76 and maintained its “buy” rating. At 9:14 a.m., Cosco Corp shares were up 4.3% at $2.41 on a volume of 18.6 million shares.

DBS Vickers said Singapore-listed Cosco Corp stands to benefit from a possible restructuring following the Chinese government’s plan to require listed state-owned enterprises to also list their non-core businesses.

The brokerage said Cosco Group, which owns 53.35% of Cosco Corp, may inject its 19% stake in Cosco Shipyard Group and 100% stake in Cosco Shipbuilding Industry Company into the Singapore-listed entity.

Cosco Group has four major business segments spanning shipping operation, shipping services, terminal and container boxes, as well as shipbuilding.

Kep Corp - Keppel Corporation rated 'outperform' by CIMB

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: CIMB

CIMB in a Jan 17 research report says "Industry newswire, Upstream, says Keppel Fels has emerged as the frontrunner for two harsh-environment rigs from Maersk worth US$900 million.

Read more...

Hi-P - Hi-P International rated 'buy' by DBS

Stock Name: Hi-P
Company Name: HI-P INTERNATIONAL LIMITED
Research House: DBS Vickers

DBS Vickers Securities in a Jan 17 research report says: "According to revised guidance, the group revenues are expected to increase in 4Q10 over 3Q10, compared to the original guidance for flat sales q-o-q. We had conservatively expected 4Q10 PATMI of $30 million compared to $33 million in 3Q10.

Read more...

SPH - Singapore Press Holdings rated 'hold' by DBS

Stock Name: SPH
Company Name: SINGAPORE PRESS HLDGS LTD
Research House: DBS Vickers

DBS Vickers Securities in a Jan 17 research report says: "Revenue and EBIT dropped respectively by 10% and 23% y-o-y to $318.7 million and $126.8 million respectively, on the absence of Sky@Eleven (Sky11) property development contribution, which was completed in May 2010. Else, revenue and EBIT would have increased by 12% and 11%, respectively.

Read more...

Yangzijiang - OCBC raises Yangzijiang to 'buy' from 'hold'

Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
Research House: OCBC

OCBC Investment Research has upgraded Singapore-listed Chinese shipbuilder Yangzijiang (YAZG.SI) to “buy” from “hold” and raised its target price to $2.36 from $2.04.



Yangzijiang delivered 48 vessels last year, better than 40 in 2009 and 27 in 2008, and OCBC said it expects the company to deliver 50 vessels this year, due to a healthy outlook for the Chinese shipbuilding industry.

The brokerage also said it expects Yangzijiang’s net profit to rise by 24% in 2010 and 14% in 2011.



“Unlike many Chinese shipyards, Yangzijiang emerged stronger from the 2008 crisis, evident from its acquisitions, improved execution abilities and increased publicity from its Taiwan depository receipts listing,” said OCBC in a report.



Yangzijiang shares have risen about 67% since the start of last year to close at $2.02 on Monday.





 

SingTel - Phillip cuts SingTel to $3.32, keeps 'hold'

Stock Name: SingTel
Company Name: SINGTEL
Research House: Phillip Securities

Phillip Securities has lowered its target price for Singapore Telecommunications (STEL.SI) to $3.32 from $3.52 and kept its “hold” rating.



Phillip said it expects SingTel to continue facing stiff competition in markets like India, Philippines, Indonesia, and Singapore.



It also noted that in Singapore, the launch of Next Generation National Broadband Network will allow competitors StarHub (STAR.SI) and M1 (MONE.SI) more opportunities to grab market share.

SingTel’s Australian unit Optus may also be affected by the floods in Australia, as Phillip expects the usage of telecommunications services to drop and its network could have also suffered from some damage.



Shares of Singapore Telecommunications have lost 0.64% since the start of last year to close at $3.09 on Monday.

Ascendasreit - Credit Suisse downgrades Ascendas REIT to Neutral

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST
Research House: Credit Suisse

Credit Suisse downgrades Ascendas REIT (A17U.SG) to Neutral from Outperform with 7.0% upside to its $2.33 target. It says the REIT’s 3Q11 DPU of 3.29 cents (+0.6% on-year, flat on-quarter), brings 9M11 DPU to 9.96 cents (down 4.0% on-year), 73% of its FY11 estimate. 

It adds, including $4.5 million interest income (from finance lease to one tenant) retained pending IRAS approval for tax transparency, 9M11 DPU would be 10.3 cents, in-line with the house’s FY11 estimate of 13.6 cents. 

“We expect unexciting single-digit (earnings) growth at A-REIT, despite improving GDP outlook, as we expect the hi-tech space to continue experiencing negative reversions into FY12, and accretions from acquisition growth (if any) to be capped due to its large base.” 

It also says, 3Q results yesterday showed rent reversions turned negative for business parks and hi-tech due to higher bases. The REIT is off 0.5% at $2.15. 

SIA - SIA +0.1%; UOB KayHian tips $14.30 entry price

Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
Research House: UOB KayHian

Singapore Airlines (C6L.SG) +0.1% at $15.30, rebounding slightly after two sessions of declines, despite posting a decline in December overall load factor to 69.8% vs November’s 70.1%. But a meagre volume of just 97,000 shares traded suggests investors would rather wait for the carrier’s fiscal 3Q results, due Jan. 28, before taking strong positions. 

UOB KayHian, which has a Hold rating and $15.90 target, says earnings growth hinges on yield improvement; notes SIA indicated it reinstated the all-business class daily flights to LA; “that suggests yields would have shown a on-quarter improvement.” But the house adds much of SIA’s recovery in profits for 1HFY11 was due to effective cost management, a surge in cargo traffic and yields. 

“The odds of further improvement in base yields remain low in the wake of a changing competitive landscape. Add to that an environment of firmer fuel prices and we see little reason to be positive on SIA aside from the immediate prospect of a bumper dividend payout.” The house makes no change to its estimates and suggests a $14.30 entry price (15% discount to its target).

SembMar - SembMarine +1.4% on new orders, peers also rise

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: OCBC

SembCorp Marine (S51.SG) is +1.4% at $5.21 in healthy volume, against the STI +0.1%, after the company says it secured a newbuild contract for a dynamically positioned research vessel and three upgrading contracts, totalling $215 million.



While analysts’ bullish views on demand for high spec jackup rigs have cheered investors as SMM and Keppel (BN4.SG) are key beneficiaries (60% market share in new jackup orders in 2010), these orders are likely generating interest as they highlight SMM’s strong capabilities in the highly specialized niche and customized vessel sector. 

OCBC, which has a Buy rating and $5.70 fair value estimate, says “this is SMM’s first announcement regarding contract wins for this year, and we are incorporating a $4 billion new order win estimate (excluding Petrobras tender) for FY11 versus 2010’s total order intake of about $3.2 billion...SMM is likely to meet our new order assumptions.” 

Last week’s high at $5.26 may cap the stock near term, before the multi-year high of $5.47. Keppel (BN4.SG) is +0.5% at $11.52 and Semborp Industries (U96.SG) is +0.8% at $5.08.