OCBC cuts Osim target to $2.11, keeps buy

Stock Name: OSIM
Company Name: OSIM INTERNATIONAL LTD

Research House: OCBC

Price Call: BUY

Target Price: 2.11

OCBC has cut its target price for Singapore lifestyle products firm Osim International (OSIL.SI), which is best known for its massage chairs, to $2.11 from $2.34 and kept its buy rating.

OCBC Investment Research cut its target price for Osim to account for a larger share base resulting from the recent exercise of its warrants.

However, OCBC remains bullish on Osim's growth prospects as its product range should benefit from research and development efforts to boost product innovation.

"While current economic uncertainty surrounding the EU and U.S. could dampen investor sentiment, we believe that the fundamentals of Osim remain strong and ample growth opportunities exist," said OCBC in a report.

At 9:49 a.m., shares of Osim were 0.6% lower at $1.68. The shares have gained 2.4% since the start of the year.

Cosco Corp (S) rated 'hold' by Phillip Securities

Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD

Research House: Phillip Securities

Price Call: HOLD

Target Price: 2.18

Phillip Securities Research in a May 31 research report says: "Cosco Corp announced during lunch that it had entered into and made effective a US$114 million contract with ATP Oil Gas (UK) limited for the construction of "Octabuoy Topside Module"-Octabuoy Phase 2.

"Separately, Cosco also announced that the US$1.05 billion contract for two Sevan 650 drilling units from subsidiaries of Sevan Drilling ASA has been made effective. With these contracts, Cosco's year-to-date order wins have been lifted to approximately US$1.8 billion out of which US$1.6 billion is from rig construction.

"We do not see a fundamental shift in the value of Cosco's business arising from these recent developments. Therefore, we stick to our initial assignment of 18x FY12E P/E with target price of $2.18. MAINTAIN HOLD."

TPV Technology rated 'outperform' by CIMB

Stock Name: TPV
Company Name: TPV TECHNOLOGY LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 0.95

CIMB in a May 27 research report says: "1Q11 net profit of US$42 million (+5% y-o-y) was in line with consensus and our estimates, forming 24% of consensus and our FY2011 forecasts. Sales grew 13% y-o-y to US$2.7 billion, lifted by higher shipments of both PC monitors and LCD TVs.

"EBITDA margins contracted 1.0% pt y-o-y to 1.5%, as a result of a jump in the opex ratio. Net debt improved to 0.02x from 0.15x at end-December 2010. We leave our FY2011-2013 profit forecasts intact and target price of 95 cents, based on 0.95x P/BV. This already pegs TPV at the low end of its 5-year band for its challenging near-term prospects.

"Nevertheless, stock catalysts are still expected from: (1) a gradual recovery in its earnings with the recent improvement in panel prices; and (2) a recovery of the LCD TV market. MAINTAIN OUTPERFORM."

JES International Holdings rated 'buy' by DBS

Stock Name: JES
Company Name: JES INTERNATIONAL HOLDINGS LTD

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.49

DBS Vickers Securities in a May 27 research report says: "JES reported its fourth profitable quarter since turning around in 2Q10. Revenue surged 151% y-o-y to RMB663 million, benefiting from improving utilisation at the new yard that commenced operations in 2H10.

"Gross margin improved to 11.3% vs a loss in 1Q10. As a result, net profit grew to RMB31.6 million (vs loss of RMB43 million in 1Q11), which is largely in line with our expectation. We have tweaked our FY2011/2012F net profit estimates by 1.6%/3.4% to account for the higher net interest expense.

"We estimate JES' orderbook to stand at about US$1.5 billion, translating to a healthy 2.5x book-to-bill ratio. Target price is adjusted slightly to 49 cents following the earnings revision, still pegged at 1.5x FY11/12 P/BV. MAINTAIN BUY."

CIMB starts Mapletree Commercial at outperform

Stock Name: MapletreeCom
Company Name: MAPLETREE COMMERCIAL TRUST

Research House: CIMB

Price Call: BUY

Target Price: 1.08

CIMB Research has initiated coverage of Mapletree Commercial Trust (MACT.SI), which owns three commercial properties in Singapore, at outperform with a target price of $1.08.

CIMB said it expects Mapletree Commercial’s organic growth to be fuelled by room for higher rental income as it has significant proportion of leases expiring in 2012 to 2013.

The trust could also see growth through acquisitions as it has rights of first refusal from its sponsor Mapletree Investments’ office and retail assets.

Mapletree Commercial has an initial portfolio of three assets worth $2.8 billion, including Singapore’s largest shopping mall VivoCity.

At 9:21 a.m., shares of Mapletree Commercial were 1.1% higher at $0.885. They have gained 1.1% since their market debut on April 27.

Deutsche starts Mapletree Commercial at buy; target $0.98

Stock Name: MapletreeCom
Company Name: MAPLETREE COMMERCIAL TRUST

Research House: Deutsche Bank

Price Call: BUY

Target Price: 0.98

Deutsche has initiated coverage of Singapore real estate investment trust Mapletree Commercial Trust (MACT.SI) at buy and a target price of $0.98.

Deutsche said Mapletree Commercial offers exposure to Singapore’s emerging “Southern Corridor” through VivoCity, the largest mall in the city state, as well as a portfolio of high-quality office assets.

The Southern Corridor comprises the area around the southern coast of Singapore.

Mapletree Commercial’s sponsor, Mapletree Investments, has also granted the trust a right of first refusal for the acquisition of 10 properties including Mapletree Business City, an office precinct in the south of Singapore.

Deutsche said that given the nature of the acquisition pipeline, Mapletree Commercial is likely to evolve from a retail-centric REIT into one which focuses on office or business space.

The company’s assets also enjoy strong rental trends, Deutsche said, noting that visitor traffic at VivoCity is likely to improve and the expiry of the initial leases should narrow the rental gap with peers.

At 10:44 a.m., Mapletree Commercial shares were up 0.6% at $0.875 on a volume of 2.5 million shares.

 

Daiwa raises SembMarine to $6.05; keeps outperform

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD

Research House: Daiwa

Price Call: BUY

Target Price: 6.05

Daiwa Capital Markets has raised its target price on Singapore’s Sembcorp Marine (SCMN.SI), the world’s second-largest oil rig builder, to $6.05 from $5.90 and maintained its outperform rating.

Daiwa said Sembcorp Marine’s year-to-date new contract wins were $1.6 billion, trailing its closest competitor, Singapore’s Keppel Corp (KPLM.SI), at $6.6 billion.

However, Daiwa said Sembcorp Marine has eight options for new-build rigs worth around $1.6 billion granted to customers who have previously placed orders, and it expects most of these options to be exercised in 2011.

The exercise of the options would put Sembcorp Marine on track to meet the 2011 order win forecast of $5 billion, Daiwa said, adding that share price catalysts are new contracts secured and the return of semi-submersibles orders to the market.

At 9:41 a.m., Sembcorp Marine shares were flat at $5.33 on a volume of 177,000 shares. The stock is down around 0.7% so far this year, compared with a rise of around 10% for Keppel Corp shares.

OCBC raises Biosensors target to $1.55, keeps buy

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

OCBC Investment Research has raised its target price for Singapore-listed medical technology firm Biosensors International (BIOS.SI) to $1.55 from $1.48 and kept its rating at buy.

Biosensors reported strong net profit in the fourth quarter, which doubled to US$18.2 million ($22.5 million) from US$9.1 million a year ago.

OCBC said that Biosensors continued improving its gross and operating margins, with the former rising to 79.3% in the fourth quarter from 77.7% in the previous three months.

“Biosensors’ drug eluting stent sales are growing faster than the overall market, which implies that it is capturing market share away from its competitors,” OCBC said in a report.

The brokerage said Biosensors’ products have room to grow and it expects the firm to step up efforts to penetrate key markets in which it is not currently operating.

At 9:22 a.m., shares of Biosensors were 1.5% higher at $1.34. They have surged 18.6% since the start of the year.

Valuetronics Holdings rated 'buy' by OCBC

Stock Name: Valuetronics
Company Name: VALUETRONICS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.49

OCBC Investment Research in a May 26 research report says: "Valuetronics Holdings Ltd (VHL) reported its 4QFY11 results with revenue growth of 73.2% y-o-y and 1.4% q-o-q to HK$531.9 million. Gross profit surged 72.1% y-o-y and 6.6% q-o-q to HK$86.4 million, while net profit rose 27.6% y-o-y but declined 11.0% q-o-q to HK$28.1 million.

"FY2011 results were in line with our expectations, with revenue increasing 73.4% to HK$1.97 billion, which was 4.6% above our estimates. A first and final dividend of 14 HK cents was declared (versus 7 HK cents in FY10), which implies a payout ratio of 41.2% and a healthy yield of 9.0%.

"We raise our revenue and earnings forecasts for FY2012 by 6.7% and 3.9% respectively although we have also factored in slightly lower margin assumptions due to rising cost pressures. We introduce our FY2013 estimates and rollover our valuation to 8x FY12F EPS. Our value fair estimate increases to 49 cents (previously 47 cents). MAINTAIN BUY."

RBS cuts Yanlord Land to hold from buy, target $1.46

Stock Name: Yanlord
Company Name: YANLORD LAND GROUP LIMITED
Research House: RBS

RBS has cut its rating for Singapore-listed Chinese property developer Yanlord Land (YNLG.SI) to hold from buy and lowered its target price to $1.46 from $2.07.

RBS said that Yanlord Land could fall short of its full-year sales target of 11 billion yuan by launching only prime, high-end projects for the rest of the year, due to purchase limits set by the Chinese government.

The brokerage also expects Yanlord to record a low gross margin of 35%, but a net gearing of 71% by the end of the year which is relatively high for Chinese property

developers.

At 11:00 a.m., shares of Yanlord Land were flat at $1.33, and have plunged 20.8% since the start of the year.

Nomura cuts Keppel Land target to $5.19 vs $5.56

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

Nomura has cut its target price for Singapore property developer Keppel Land (KLAN.SI) to $5.19 from $5.56 and kept its rating at buy.

Nomura said it has placed a 45% discount, versus none previously, on Keppel Land’s property development business in China to reflect the market’s challenging near-term outlook.

“Besides policy concerns, supply is a significant overhang on home prices, especially in the prime luxury segment in the near term. Against this physical market outlook, residential developers are unlikely to outperform,” said Nomura in a report.

The brokerage noted that the overall residential property market in China appears weak following recent cooling measures by the government, and Keppel Land’s management expects sentiment to remain soft in the near term.

Keppel Land has property projects in Chengdu and Tianjin Eco City in China.

At 11:12 a.m., shares of Keppel Land were 0.25% higher at $3.98, and have fallen 17% since the start of the year.

UBS cuts Hutchison Port target to US$1.10 vs US$1.17

Stock Name: HPH Trust US$
Company Name: HUTCHISON PORT HOLDINGS TRUST
Research House: UBS

UBS has lowered its target price for Singapore-listed Hutchison Port Holdings Trust (HPHT.SI) to US$1.10 ($1.37) from US$1.17 and kept its buy rating.

UBS has cut its target price for Hutchison as it expects the trust to pay out more conservative dividends after 2022. It also assumed a higher cost of equity of 8.3% for Hutchison, versus 8.1% previously.

However, the brokerage has kept its buy rating as it believes Hutchison Port still has significant advantages over its peers, such as a stronger control over its cash flow.

At 11:32 a.m., shares of Hutchison Port Holdings were 0.55% lower at US$0.905 and have fallen about 4% since its debut in March. Hutchison Port, controlled by Hong Kong tycoon Li Ka-shing's Hutchison Whampoa (0013.HK), sold units at the IPO at US$1.01 each.

IIFL raises target on Olam to $3.87; keeps buy

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED
Research House: IIFL

IIFL has raised its target price on Singapore-listed commodities firm Olam International (OLAM.SI) to $3.87 from $3.77 and maintained its buy rating.

IIFL said Olam has a strong growth trajectory, with a 43% year-on-year increase in core earnings in its third quarter on the back of volume and margin expansion across its businesses.

The securities firm said it believes Olam has the room and execution capability to achieve an annual increase of 15-20% for volume and 5-10% for margins in the next three years.

IIFL added that Olam has planed capital expenditure of US$1 billion ($1.24 billion) to US$1.5 billion in the next three years for assets such as processing and logistics.

At 11:40 a.m., Olam shares were up 2.1% at $2.89 on a volume of 3.5 million shares.

Sapphire Corporation rated 'increase exposure' by SIAS

Stock Name: Sapphire Corp
Company Name: SAPPHIRE CORPORATION LIMITED

Research House: SIAS

Price Call: BUY

Target Price: 0.60

SIAS Research in a May 26 research report says: "Sapphire delivered a strong set of results with operating profit growing by $3.2 million y-o-y to $3.9 million in 1Q FY2011.

"However, these gains were negated by losses of S$16.0m from its stake in HKSE listed China Vanadium Titano-Magnetite Mining Company Limited (CVTM). We understand that the maximum losses that Sapphire can suffer due to its CVTM stake will be capped by its collar financing agreement with Credit Suisse.

"Operationally, Sapphire's outlook remains intact with government plans to develop the Chengdu-Chongqing vicinity into an economic zone. Our FY2012F and FY2013F forecasts were unchanged. Unchanged intrinsic value of 60 cents. MAINTAIN INCREASE EXPOSURE."

Hiap Seng Engineering rated 'fully valued' by DBS

Stock Name: Hiap Seng
Company Name: HIAP SENG ENGINEERING LTD

Research House: DBS Vickers

Price Call: SELL

Target Price: 0.50

DBS Vickers Securities in a May 26 research report says: "4Q11 barely broke even with net profit of $0.7 million (-91% y-o-y), blamed to slower revenue recognition and cost overruns on certain projects.

"Revenue declined 43% y-o-y from $57.4 million to $32.4 million. Gross margin fell from 22.5% to 14.5%. This brought FY2011 (FYE Mar) net profit to $8.0 million, 37% short of our estimates largely due to lower-than-expected revenue recognition in 4Q.

"Hiap Seng declared a final dividend of 1 cent, bringing full year dividend payout to 2.0 cents, translating to 4% dividend yield. We expect Hiap Seng to pay 2.5 cents dividend in FY2012/2013.

"We have cut our FY2012 earnings by 29% on slower revenue recognition. Our SOTP target price is lowered to 50 cents, with an implied FY2012 PE of 9.7x. FULLY VALUED."

United Envirotech rated 'buy' by OCBC

Stock Name: UtdEnvirotech
Company Name: UNITED ENVIROTECH LTD

Research House: OCBC

Price Call: BUY

Target Price: 0.53

OCBC Investment Research in a May 25 research report says: "United Envirotech Ltd (UEL) posted more lumpy results in 4QFY11, with revenue falling 34.5% y-o-y to an estimated $19.8 million; this followed the completion of the Guangzhou Jingxi plant in 2QFY11.

"Net profit fell by 63.0% y-o-y and 59.6% q-o-q to $1.6 million; but if we strip out exceptional items (negative goodwill), we estimate that UEL may have booked a slight $0.4 million loss.

"In light of the lumpy 4QFY11 results and poorer-than-expected margins, we pare our FY2012 revenue estimate by 5.5% and earnings by 20.1%. Our DCF-based fair value also eases from 65 cents to 53 cents. But given the still positive prospects, we maintain our buy rating. MAINTAIN BUY."

CSC Holdings rated 'buy' by DMG

Stock Name: CSC
Company Name: CSC HOLDINGS LTD
Research House: DMG

DMG & Partners Securities in a May 20 research report says: "CSC's 4QFY11 earnings disappointed, coming in at a loss of $4.9 million, due to a $7.9 million impairment loss made on the Changi MotorSports Hub project receivable.

"We have lowered our FY2012 earnings by 37.6%, to reflect the slower than expected pick up in gross margins as well as higher expenses. A final dividend of 0.1 cent was declared, bringing total FY2011 payout to 0.5 cents (3.6% yield). Outlook remains positive as CSC is likely to secure more projects from the MRT Downtown Line (DTL) Stage 3 with its strong track record.

"We lower target price of 19 cents, based on 12x FY12/FY13 blended P/E, the level it was trading at in 2005 just before its earnings recovery. MAINTAIN BUY."

STX OSV Holdings rated 'buy' by DBS

Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED
Research House: DBS Vickers

DBS Vickers Securities in a May 25 research report says: "STX OSV specialises in the construction of complex and specialised vessels used across the offshore services industry.

"We assumed FY2011 order wins of NOK13 billion vs. YTD order wins of NOK5.5 billion (including the 8 Transpetro LPG carriers to become effective upon funding approval). Despite full yard utilisation till late 2012/early 2013, improved project execution and efficiency gains are expected to result in superior EBITDA margins of >10% over FY2011F-2012F, supporting FY2010-2012 recurring earnings CAGR of 15%.

"Target price of $1.86, pegged to 11x blended recurring FY2011/2012 PE. At 7x FY11 PE, STX OSV trades at an unwarranted discount to peers, with valuations supported by steady earnings growth and a dividend yield of 4.2-4.5%. BUY (initiating coverage)."

Bukit Sembawang Estates rated 'outperform' by CIMB

Stock Name: BukitSem
Company Name: BUKIT SEMBAWANG ESTATES LTD
Research House: CIMB

CIMB in a May 25 research report says: "4Q11 core net profit of $14.4 million is below our expectation and the Street's, at 9% of our FY2011 estimate. FY2011 core net profit forms 92% of our forecast.

"The variance was due to higher-than-expected cost of sales. Positives, however, came from a higher final dividend of 12 cents (3% yield), lower net gearing and guidance of launches of Luxus Hills Phase 5 and Fairways in FY2012.

"We reduce our FY2012-2013 EPS estimates by 6-13%, factoring in slower sales at The Vermont, and introduce FY2014 estimates. Our target price, however, is unchanged at $5.86, pegged at a 30% discount to RNAV. MAINTAIN OUTPERFORM."

Sinopipe Holdings rated 'increase exposure' by SIAS

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

SIAS Research in a May 25 research report says: "Sinopipe 1Q revenue and PATMI grew 15.3% y-o-y and 12.1% y-o-y to RMB193 million and RMB14.4 million respectively. 1Q is seasonally weaker owing to the cold winter and festive seasons which affected the number of working days.

"This explains why the quarter revenue and PATMI were 18.2% and 16.1% of our prior full year forecasts. Impacts of higher interest rate will be negated after proceeds from the conditional agreements are available for use.

"We are also upgrading the long term growth rate to 2.5% in view of positive industry outlook. Our model values the company at 45 cents per share. Sinopipe continues to be trading at a cheap valuation of FY11F P/E of 3.7X and P/B of 0.46X. MAINTAIN INCREASE EXPOSURE."

Falcon Energy Group rated 'hold' by Kim Eng

Stock Name: FalconEne
Company Name: FALCON ENERGY GROUP LIMITED
Research House: Kim Eng

Kim Eng Research in a May 24 research report says: "Even though FEG successfully turned a profit on a sequential basis, net earnings were still sharply lower at US$3.3 million, or a drop of 59.7% y-o-y.

"In particular, its marine division continues to be a bugbear as near-term industry outlook remains muted. The saving grace came from its oilfield services and projects divisions. Together, they chalked up revenue of US$13.5 million, representing a 171% y-o-y increase.

"While 2Q11 is expected to be equally lacklustre, management maintains that the worst is likely to be over for the company. Key re-rating catalysts include faster-than-expected recovery in its marine division and successful execution of coal mining activities. Target price of 35 cents. MAINTAIN HOLD."

Allgreen Properties rated 'buy' by AmFraser

Stock Name: Allgreen
Company Name: ALLGREEN PROPERTIES LTD
Research House: AmFraser

AmFraser Research in a May 24 research report says: "Brookvale Investments Pte Ltd (Brookvale) has made a voluntary conditional cash offer of $1.60 per share for all issued shares of Allgreen Properties Ltd (Allgreen).

"Brookvale intends to take Allgreen private whilst offering existing shareholders a chance to liquidate their investment at a significant premium to the market traded price over the last three years.

"Due to the policy overhang on the property sector, mid-cap property counters under our coverage are currently trading in the region of 0.7x to 0.9x price-to-book value.

"Our RNAV estimate of $1.60 per share is exactly the same as the offer price by Brookvale. We had priced fair value of Allgreen at parity to our RNAV estimate. MAINTAIN BUY."

Cache Logistics Trust rated 'buy' by OCBC

Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST
Research House: OCBC

OCBC Investment Research in a May 23 research report says: "Cache Logistics Trust (CACHE) announced that it has completed the acquisition of 4 Penjuru Lane for $8.9 million. We applaud CACHE's efforts to diversify away from its sponsor with yet another third-party acquisition.

"We look forward to more property additions ahead not only to diversify CACHE's tenant base, but also to reduce its concentration risk on a single asset (CWT Hub which still account for 46.8% of FY2011 gross revenue following the acquisition).

"Concentration and inflation risks remain our top concerns for the trust and we expect management to consciously address these as the REIT grows in asset size. Increased fair value of $1.05 (previous: $1.04). MAINTAIN BUY."

UOB raises target on CWT to $1.61; keeps buy

Stock Name: CWT
Company Name: CWT LIMITED
Research House: UOB KayHian

UOB Kay Hian has raised its target price for Singapore logistics company CWT (CWTD.SI) to $1.61 from $1.23 and maintained its buy rating.

UOB said a new area for CWT's future growth is commodities trading as the company's presence and experience in commodities logistics gives it natural advantages, such as trade information flow and strong relationships with firms in the sector.

Over the past 6-9 months, CWT has been gradually building up its assets in commodities logistics, UOB said, adding that the company's recent license as a US Futures Commission Merchant enables it to provide trading access and logistics solutions.

The brokerage said that CWT had ventured into coal trading last year by sourcing coal from Indonesia and delivering it to customers in India and China. In the long term the company could consider trading metals and other soft commodities, UOB added.

At 9:57 a.m., CWT shares were down 1.7% at $1.19 on a volume of 157,000 shares. The stock has risen around 19% so far this year.

CIMB ups Keppel Land target to $5.36 vs $5.29

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

CIMB Research has raised its target price for Singapore property developer Keppel Land (KLAN.SI) to $5.36 from $5.29 and kept its outperform rating.

CIMB Research said it expects Keppel Land to weather China’s property cooling measures relatively unscathed, as its township portfolio in Tianjin Eco-City, a China-Singapore government venture development, has seen strong initial residental sales and will produce sustainable growth in the next decade.

“Its stock underperformance serves to reinforce our positive view. We continue to expect price catalysts from rising China township prices and Singapore office rents,” said CIMB in a report.

The brokerage said it expects Keppel Land’s China business to increasingly become an important growth driver for the company’s value.

At 10:29 a.m., shares of Keppel Land were 0.76% higher at $3.97 and have plunged 17% since the start of the year.

Credit Suisse ups UOB to outperform, target $25

Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: Credit Suisse

Credit Suisse has upgraded Singapore’s United Overseas Bank (UOBH.SI) to outperform from neutral and raised its target price for to $25.00 from $22.50.

Credit Suisse has raised its earnings per share estimates for UOB from 2011-2013 by 5-7% due to higher loan growth, fee income and an improvement in net interest margins in the second half of 2011.

“UOB is set to show the best loan growth in 2011 with a significant lead over DBS (DBSM.SI) and OCBC (OCBC.SI) already in the first quarter. Banks expect overseas loan growth to be the main driver in 2011, with UOB seeing the highest overseas loan growth,” said Credit Suisse in a report.

The brokerage also added that UOB is its new sector top pick, given its attractive return-on-equity of 13.7% versus 11.2% for DBS (DBSM.SI) and 12.8% for Oversea Chinese Banking Corp (OCBC.SI).

At 9:48 a.m., shares of UOB were 0.53% higher at $19.14, and have gained 5.2% since the start of the year.

 

Phillip ups Golden Agri to buy from hold, target $0.83

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

Phillip Securities has upgraded its rating for Singapore-listed palm oil firm Golden Agri-Resources (GAGR.SI) to buy from hold and raised its target price to $0.83 from $0.74.

Phillip upgraded Golden Agri after the firm reported a better-than-expected 134% increase in its first quarter revenue to US$1.4 billion ($1.75 billion), due to better performance from its China operations and higher average selling prices.

The brokerage also noted that Golden Agri is expanding its downstream business, which will benefit from the growing affluence of emerging markets and rising popularity of edible oils.

"We see the importance of Golden Agri’s need to improve their downstream business because diversification of their source of revenue will help them reduce their business risk," said Phillip in a report.

Shares of Golden Agri have fallen 13.8% since the start of the year to end at $0.69 on Monday.

Tiger Airways Holdings rated 'underperform' by CIMB

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

CIMB in a May 23 research report says: "During its analysts' briefing, management discussed the tough operating conditions in Australia but remained bullish on Asian demand. Tiger will no longer expand its Australian capacity, but instead focus on Asia.

"In response to this, we lower our cost estimates and adjust our operating assumptions. Our FY2012 estimate drops by 10.1% but FY2013-2014 forecasts rise by 4.8-10.3%. Our target price also climbs to $1.43 (from $1.39) following our adjustments, still based on 8X CY12 P/E.

"Execution of Tiger's plans remains uncertain in the near term, providing potential de-rating catalysts, though given time, Tiger's business model could mature. MAINTAIN UNDERPERFORM."

Indofood Agri Resources downgraded to 'underperform' by CIMB

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

CIMB in a May 23 research report says: "IFAR has announced that PT SIMP will be listed at Rp1,100 a share. We are negative as: (1) the offer price represents only 8x P/E; (2) earnings dilution is higher than expected; and 3) the implied value for IFAR is only $1.42 or 30% below its current share price.

"We are cutting our earnings forecasts to account for the shareholding dilution. We also cut our target price to $1.94, now based on 12x forward P/E, from $2.73 (14.5x), representing a 20% discount to our target for Golden Agri.

"We are disappointed with its plan to proceed with the listing despite the low offer price for SIMP. Potential de-rating catalysts are a stock overhang following the listing and higher-than-expected earnings dilution. DOWNGRADE TO UNDERPERFORM."

Yongnam Holdings rated 'buy' by DBS

Stock Name: Yongnam
Company Name: YONGNAM HOLDINGS LIMITED
Research House: DBS Vickers

DBS Vickers Securities in a May 20 research report says: "Yongnam Holdings announced that it has secured another structural steel contract worth $50 million for the restoration works to the former Supreme Court building and the former City Hall building.

"This is the fourth contract announced by Yongnam YTD, and comes close on the heels of the Singapore Sports Hub contract worth $75 million secured earlier this month. With this contract, we estimate new order wins YTD in FY2011 should add up to approximately $200 million, including unannounced contracts.

"This translates to more than 50% of our full-year order win projections of around $370 million, and should enhance Yongnam's current orderbook to over $500 million. Target price of 38 cents. MAINTAIN BUY."

Moya Asia rated 'increase exposure' by SIAS

Stock Name: Moya Asia
Company Name: MOYA ASIA LIMITED
Research House: SIAS

SIAS Research in a May 20 research report says: "Moya Asia Ltd (Moya Asia; previously known as Moya Dayen Ltd) announced an impressive set of turnaround 1Q FY2011 results, with revenue rising $10.2 million y-o-y to $12.0 million.

"The increment was largely due to progressive recognition of the Cambodian projects which were secured over the past one year. 1Q FY11 revenue and PATMI represent a substantial 44.4% and 59.8% of our previous forecasts respectively. Balance sheet remained firm with $27.1 million cash.

"In view of the healthy order book (end 1QFY2011: $51 million), stable gross margin and effective cost management we are revising our FY2011F revenue and PATMI upward to $39.7 million and $3.94 million respectively. Intrinsic value of 15 cents. MAINTAIN INCREASE EXPOSURE."

CDL Hospitality Trust downgraded to 'hold' by Phillip Securities

Stock Name: CDL HTrust
Company Name: CDL HOSPITALITY TRUSTS
Research House: Phillip Securities

Phillip Securities Research in a May 20 research report says: "CDL HT made a comeback to Singapore hospitality property sector by acquiring Studio M Hotel from its sponsor to ride on the tourism wave.

"Post acquisition, the gearing ratio remains at a healthy level of 26.9% and a debt headroom of $400 million for inorganic growth based on 40% total debt-asset leverage ratio. Our DDM model has priced in the property tax revision from 2011 onwards for Singapore hotel properties, lower RevPAR for Orchard Hotel and Novotel Clarke Quay due to refurbishment as well as revenue contribution from Studio M Hotel.

"We are still positive on the tourism sector for this year but the aforesaid downside risks and pipeline supply coming on stream in the next few years will keep a lid on rental growth. To account for the downside risks, we raise the cost of equity from 6.3 to 7.6% and derive the target price of $2.04. DOWNGRADE TO HOLD."

Ramba Energy rated 'increase exposure' by SIAS

Stock Name: Ramba
Company Name: RAMBA ENERGY LIMITED
Research House: SIAS

SIAS Research in a May 19 research report says: "Ramba Energy Ltd (Ramba) registered a healthy 17.7% y-o-y growth in revenue to $13.4 million for 1Q FY11. The $2.0 million increment was largely attributed to higher sales from the Jatirarangon block and greater contribution from the logistics business.

"However, bottom line was affected by escalating oil prices (which affected the logistic business) and higher consultation fees from the Indonesian operations. The company has taken actions to improve the logistics business' margins by implementing fuel surcharge.

"We are also adjusting our FY2011F PATMI from $2.4 million to $0.2 million to take into account the higher costs. At the same time, we have adjusted the value of Ramba's energy fields owing to more promising estimates. Intrinsic value of 80 cents per share. MAINTAIN INCREASE EXPOSURE."

CIMB ups Tiger Airways target to $1.43 vs $1.39

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

CIMB Research has raised its target price for Singapore budget carrier Tiger Airways (TAHL.SI) to $1.43 from $1.39 while keeping its underperform rating.

CIMB lowered its fiscal 2012 earnings estimate for Tiger by 10.1% but raised 2013-2014 forecasts by 4.8-10.3%. This follows Tiger’s comments it will not expand its Australian capacity due to tough operating conditions in the country.

Tiger Airways’ Australian operations reported its third year of losses for fiscal 2011, due to high fuel prices and poor demand. Therefore, the management will focus on its Asian business instead.

“Air travel remains strong in Asia and Tiger has planned a 41% increase in seat capacity in the current northern summer scheduling season,” said CIMB in a report.

At 9:17 a.m., shares of Tiger Airways were 1.3% lower at $1.51. They have fallen 18.8% since the start of the year.

 

DBS cuts target on Tiger to $1.50; keeps hold

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: DBS Vickers

DBS Vickers has lowered its target price on Singapore budget carrier Tiger Airways (TAHL.SI) to $1.50 from $1.60 and maintained its hold rating.

Tiger reported fourth quarter net profit of $1.3 million, compared with $22.3 million a year earlier, hurt by deferred tax charges, unfavourable weather conditions in Australia and higher fuel prices.

Separately, the carrier announced that it had agreed to acquire a 33% stake in Indonesia's PT Mandala Airlines for an undisclosed amount.

DBS Vickers said Tiger's fourth quarter results were below expectations as ticket prices failed to keep pace with oil costs. Visibility about Tiger's potential Mandala stake acquisition is limited at this point, the brokerage added.

It remained concerned about delays in the execution of the Thai Tiger start-up, a budget airline alliance between Tiger and Thai Airways International Plc (THAI.BK), DBS Vickers said.

It added that it is viewing with caution a recent regulatory ruling in the Philippines barring Tiger's partner SEAIR from starting new domestic routes.

At 10:01 a.m., Tiger shares were down 1.3% at $1.53 on a volume of 286,000 shares.

STX Pan Ocean rated 'underperform' by CIMB

Stock Name: STXPO 100
Company Name: STX PAN OCEAN CO., LTD.
Research House: CIMB

CIMB in a May 16 research report says: "STXPO held a post-results conference call last Friday. The company is exposed on the vast majority of its bulk shipping contracts to higher bunker costs without an avenue to pass them on to charterers.

"With bunker prices remaining elevated, STXPO is poised for further losses in 2Q, at the very least. Hence we slash our FY2011 forecast to a core loss of US$135 million from a core profit of US$37 million. Our FY2012-2013 forecasts have been reduced by 13-16%.

"Our target price has been cut from $11.90 to $9.80, as we raise our sum-of-the-part discount from 10% to 20% on account of heightened risks for the stock. We believe the next few quarters will be extremely tough for STXPO, with consensus earnings downgrades being the key de-rating catalysts. MAINTAIN UNDERPERFORM."

SATS rated 'buy' by Phillip Securities

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

Phillip Securities Research in a May 18 research report says: "SATS's PATMI for FY2011 was in line with our expectations to record a 5.6% y-y increase to $191.4 million. SATS also consolidated the results of TFK Corp for the first time in 4QFY11 (Revenue: $72.6 million; Operating loss: $1.6 million).

"TFK's losses for the quarter are fairly small, in our opinion, considering the disruptions to air traffic experienced in the month of March. Despite the translational effects of a weaker GBP against SGD, the UK business managed to record a marginal growth in revenue contribution, which we estimated to be an 8% y-o-y growth in local currency terms.

"Our target price of $3.41 implies a FY12E P/E of 19X, which is at the top end of its historical P/E range. After including forecasted dividends of 17.3 cents over the next 12months, we expect total return of 34.8%. MAINTAIN BUY."

Mermaid Maritime Plc upgraded to 'neutral' by CIMB

Stock Name: Mermaid
Company Name: MERMAID MARITIME PUBLIC CO LTD
Research House: CIMB

CIMB in a May 18 research report says: "2Q11 net loss of THB219 million (+16% y-o-y) was smaller than what we were expecting (THB392 million), though larger than consensus. Key variance was improved utilisation in the subsea fleet. 1H11 net loss of THB408 million forms 43% of our FY2011 number.

"Factoring in the better-than-expected 2Q, higher subsea day rates and improved utilisation for MTR-2, we narrow our FY2011 net-loss estimate by 36%, but keep our estimates for FY2012-2013. Our target price remains 41 cents, based on 0.7x CY11 P/BV (average since FY2009). Following our downgrade in our 4Q10 results note, the stock has underperformed the FSSTI by 26%. UPGRADE TO NEUTRAL."

Neptune Orient Lines downgraded to 'hold' by OCBC

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: OCBC

OCBC Investment Research in a May 16 research report says: "NOL had its first quarterly loss in a year when it reported a small loss of US$9.7 million for 1QFY11, which was better than market expectations of a loss of US$10 million.

"Although this was an improvement from the US$98.5 million loss reported over the same period a year ago, on a q-o-q basis, earnings were in the red versus 4QFY10's US$177.5 million earnings. Revenue rose 16% y-o-y from US$2.1 billion to US$2.4 billion while gross profit came in at US$191.8 million, up from US$89 million a year ago, but down 52% q-o-q due to rising fuel costs.

"We have adjusted our FY2011 estimates down, lowering volume and freight rate growth by 3% and 1%, respectively. Fair value estimate reduced from $2.70 to $2.05, based on the 5-year historical P/B average of 1.25x. DOWNGRADE TO HOLD."

First Resources rated 'buy' by DMG

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

DMG & Partners Securities in a May 16 research report says: "First Resources' (FR) 1Q10 earnings was in line, coming in at 21.4% of our FY estimates, attributable to higher selling prices for crude palm oil and palm kernel.

"Strong fresh fruit bunches (FFB) production growth was seen in 1Q10, with nucleus up 24.7%. FFB plasma production has recovered (up 33.4% y-o-y), thus giving production an added boost this year. FR has completed the acquisition of 100k ha of land in East Kalimantan and land usage details are likely to emerge in 1H12.

"Looking ahead, we do not expect comparably strong double digit y-o-y production growth in 2H11 (unlike in 1H11), since FR's trees showed signs of a recovery earlier than its peers last year. Target price of $1.77, based on 15x FY11 earnings. MAINTAIN BUY."

UOL Group rated 'buy' by OCBC

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

OCBC Investment Research in a May 16 research report says: "UOL announced 1Q11 PATMI of $230.0 million which was a 133% y-o-y increase from the restated 1Q10 PATMI of $98.7 million. Revenue increased 102% y-o-y in 1Q11 to $725.1 million from $358.9 million in 1Q10 (restated).

"We note that UOL had implemented INT FRS 115 this quarter, which requires revenue recognition under the completion of construction (COC) method for units sold under the deferred payment scheme (DPS). We adjust our FY2011 PATMI forecast up to $536.0 million to account for the effects of INT FRS 115 and faster rates of completion at development projects.

"Given $376.8 million in cash at a net gearing of 34%, there is ample gunpowder for acquisitions ahead and management continues to seek accretive opportunities. Fair value of $5.57 (at 20% discount to RNAV) versus $5.39 previously. MAINTAIN BUY."

UMS Holdings rated 'increase exposure' by SIAS

Stock Name: UMS
Company Name: UMS HOLDINGS LIMITED
Research House: SIAS

SIAS Research in a May 16 research report says: "UMS Holdings Ltd's (UMS) 1Q FY2011 net attributable profit grew by 63.4% y-o-y on revenue growth of 41.3%.

"We expect 2011 to be yet another record year for UMS as a result of (a) strong orders from customers, (b) the kick in of tax incentives starting from 2Q and (c) gains of $2.6 million from the disposal of a factory building in Singapore. Net cash flow generated from operations remained strong, at 4.8x that of 1Q last year (up 8.8% q-o-q).

"UMS declared a 1 cent dividend for 1Q FY11. This works out to an attractive annualized dividend yield of close to 7% - which is considerably attractive among companies listed on the SGX. Iintrinsic value of $1.08. MAINTAIN INCREASE EXPOSURE."

OCBC ups SATS target to $3.06, keeps buy

Stock Name: SATS
Company Name: SATS LTD.
Research House: OCBC

OCBC Investment Research has raised its target price for Singapore airport services firm SATS (SATS.SI) to $3.06 from $2.87 and kept its buy rating.

OCBC raised its target for SATS after it reported strong quarterly results, with a revenue of $504.9 million that exceeded the brokerage’s expectations.

“While we anticipate near-term risks stemming from food price inflation, which may elevate operating costs, we believe that SATS’s pass-through cost structures should adequately relieve costs in the medium term,” said OCBC in a report.

The brokerage noted that SATS’ management expects moderate growth from Singapore but remains cautious over its international operations, especially in Japan due to the effects from the earthquake.

At 9:38 a.m., shares of SATS were 0.38% higher at $2.67 and have fallen 7.3% since the start of the year.

DMG ups Keppel Corp to $13.80 vs $12.77

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

DMG & Partners Research has raised its target price on Keppel Corp (KPLM.SI), the world’s largest oil rig builder, to $13.80 from $12.77 and maintained its buy rating.

Keppel Corp has secured an order for four newbuild jackup oil rigs from Oslo-listed S.D. Standard Drilling Plc (SDSD.OL) for US$772 million that lifted its year-to-date order wins to more than $6.4 billion. 

DMG estimates Keppel’s current outstanding orderbook to be about $9.5 billion, with deliveries extending to June 2014.

Keppel has won 19 new orders year-to-date, and DMG has raised its order assumption for Keppel to $9 billion in 2011, against a previous estimate of $6.5 billion, with nine outstanding jackup options valued at about US$2.7 billion ($3.37 million).

At 11:03 GMT, shares of Keppel Corp were down 1.2% to US$11.50 on a volume of 2 million shares. The stock has risen about 12% since the start of the year.

Mewah International rated 'buy' by DBS

Stock Name: Mewah
Company Name: MEWAH INTERNATIONAL INC.
Research House: DBS Vickers

DBS Vickers Securities in a May 12 research report says: "Mewah reported 1Q11 net profit of US$17.0 million (-.3% y-o-y, -52.8% q-o-q), which was below our expectations of US$22 million. 1Q11 volumes are seasonally the lowest due to palm oil harvesting pattern and absence of significant festivities.

"1Q11 profit was dragged by lower sales volume (-10.8% y-o-y, -13.8% q-o-q) especially from Africa and Middle East where volumes shrank due to political instability during the quarter. Balance sheet remains strong with debt to equity ratio standing at 0.74x, representing a slight increase from 4Q11 at 0.64x due to higher commodity prices.

"We expect 2Q11 volumes to recover, as the political situation in Africa and the Middle East normalizes. Target price of $1.23, which offers c.26% upside from current levels. MAINTAIN BUY."

Banyan Tree Holdings rated 'hold' by DBS

Stock Name: BanyanTree
Company Name: BANYAN TREE HOLDINGS LIMITED
Research House: DBS Vickers

DBS Vickers Securities in a May 12 research report says: "1Q11 revenue of $114.3 million was 8% higher y-o-y, boosted by sale of a development site in Lijiang to its China Fund for $24.7 million.

"Stripping this out, the group's operating performance would be 16% lower y-o-y at $89.5 million due to (i) lower recognition of property sales - 62% y-o-y from sale of 1 unit Laguna Village bungalow and Banyan Tree Phuket double pool villa vs several units a year ago and (ii) loss of income from the divestment of Dusit Thani hotel back in 4Q10.

"However, BTH's hotel investment segment remained stable on same-store basis. Group's RevPAR declined 3% y-o-y to $245 per night. $200 million war-chest; substantially earmarked to build "branded" residential homes. Target price of $1.09. MAINTAIN HOLD."

Hong Leong Asia rated 'underperform' by CIMB

Stock Name: HL Asia
Company Name: HONG LEONG ASIA LTD.
Research House: CIMB

CIMB in a May 13 research report says: "1Q11 core net profit of $18.5 million (-49% y-o-y) was below our expectation and the Street's, forming 17% and 16% of the respective forecasts, due to disappointing performances at both Yuchai and Xinfei. Yuchai's net profit fell 16% y-o-y on weaker unit sales.

"Xinfei slipped into a second quarter of loss on declining margins and $5 million charge accrued in advance for higher selling costs. We cut our FY2011-2013 core EPS estimates by 4-11%, incorporating weaker earnings assumptions for Yuchai and Xinfei, offset by stronger earnings assumptions for Building Materials.

"Accordingly, our sum-of-the-part target price drops from $3.01 to $2.74. While sales at Xinfei should pick up with the arrival of warmer weather, we do not expect a sharp reversal with continued industry competition and rising raw-material and wage costs. MAINTAIN UNDERPERFORM."

Foreland Fabrictech Holdings rated 'overweight' by NRA Capital

Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD
Research House: NRA Capital

NRA Capital in a May 11 research report says: "Despite 1Q being the seasonally weaker quarter, revenue grew sequentially by 7% to RMB153.5 million (+264% y-o-y), thanks to increased sales volume and average selling prices. The remarkable results were attributed to the headway it has made in supplying high grade umbrella fabric to top umbrella manufacturers in China.

"Average selling price increased 36.3% y-o-y (-0.6% q-o-q) to RMB12.4 per yard while production volume jumped 167% y-o-y (+8% q-o-q) to 12.4 million yards. EBITDA margin jumped 13.3 ppt y-o-y but dropped 0.2ppt q-o-q to 28.7%, versus our estimate of 26.5%.

"We maintain our conservative valuation multiples, pegging at 30% discount on 7x FY11 PER and thus deriving target price of 19.5 cents (previous 18.5), which represent 4.8x FY12 PER and 4.7x FY13 PER. MAINTAIN OVERWEIGHT."

ComfortDelgro Corp rated 'buy' by Nomura

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD
Research House: Nomura

Nomura Research in a May 16 research report says: "CD reported a 7.7% y-o-y decline in 1Q11 profit to $50.1 million, below our and market estimates of $56 million and $58 million, on lower earnings in the bus and automotive engineering divisions while taxi and rail posted relatively robust growth.

"CD's land transport operations are likely to continue to be impacted by higher inflationary pressures, with higher fuel and labour costs as well as volatile currency-translation effects likely to impact earnings. However, its robust balance sheet and the strong cash generative aspects of its multinational bus, taxi and other land transport related businesses should continue to sustain profitability.

"CD now trades at FY11/12F P/E of 12x and 11x, at the lower end of its historical P/E band of 10x and 20x, while the dividend yield remains attractive at 4%. Target price of $1.98. BUY"

Golden Agri-Resources rated 'buy' by Nomura

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

Nomura Research in a May 16 research report says: "Golden Agri's 1QFY11 core net profit came in very strong at US$205.7 million, (+152% y-o-y and +102% q-o-q), on a stronger-than-expected CPO production recovery (+35% y-o-y - ahead of peers) and supported by higher realised CPO ASP (+58% y-o-y).

"Cost of production also fell 7% y-o-y due to economies of scale. We roll forward our earnings to FY2013F and raise our FY2011F earnings/price target by 13%/7%, to account for our new estimate of 10% y-o-y FFB production growth in FY2011F, which is still conservative, and has an upside risk in the absence of any unfavourable weather during the year.

"We raise target price to 96 cents (from 90 cents). MAINTAIN BUY."

Singapore Airlines rated 'outperform' by CIMB

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

CIMB in a May 16 research report says: "During its analysts' briefing, SIA reiterated its cautionary outlook for FY2012 due to high fuel prices, and potentially lower load factors.

"SIA is planning to increase aircraft utilisation, and replace its aged aircraft with new planes, moves that will improve operating efficiency. While we reduce our FY2012 EPS by 2% on various adjustments to our forecasts, we raise FY2013-2014 by 2-3%.

"We also raise our net dividend per share assumptions from $1 to $1.50 for FY2013-2014, as we expect SIA to distribute its excess cash on a more regular basis. Consequently, our target price drops from $16.20 to $16, but net dividend yields rise to 5.5-10.2% p.a. from 5.5-7%. MAINTAIN OUTPERFORM."

Swiber Holdings rated 'outperform' by CIMB

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED
Research House: CIMB

CIMB in a May 16 research report says: "Excluding fair-value gains on convertible bonds of US$6.9 million, 1Q11 core net profit of US$2.8 million (-65% y-o-y) was below our expected US$7 million and consensus's US$9 million, forming 10% of our full-year forecast.

"This was due to lower-than-expected gross margins of 16% (expected 20%) although revenue was stronger than expected. We reduce our FY2011-2013 estimates by 1-5% to account for the lower margins.

"Accordingly, our target price dips to 98 cents from $1.01, still based on 12x CY12 P/E (5-year sector average). We believe the share price could remain supported/catalysed by order wins in the short term from Indonesia and Malaysia. MAINTAIN OUTPERFORM."

Sunvic Chemical Holdings rated 'buy' by Phillip Securities

Stock Name: SunVic
Company Name: SUNVIC CHEMICAL HOLDINGS LTD
Research House: Phillip Securities

Phillip Securities Research in a May 16 research report says: "Revenue and net profit are 15% and 38% of our own full year forecast respectively. However we were not surprise, because we had been keeping our fingers crossed.

"Revenue for 1Q11 was RMB990.1 million (+52.0% y-o-y, +8.7% q-o-q), net profit was RMB221.1 million (+319.4% y-o-y, -26.4% q-o-q). Stripping out the tax rebate recognized in 4Q10, 1Q11 net profit would be on par with 4Q10. The high ASP led to a 20%pt improvement in gross profit margin (GPM) to 35%. We are keeping our forecast numbers unchanged for the moment.

"While 1Q11 results had been impressive, the moderation in GPM is an indication of rising raw material cost, the main one being propylene, a derivative of heavy oil. Target price of $1.20, which implies a forward earnings peg of 6x. MAINTAIN BUY."

OCBC ups Golden Agri price target, keeps buy

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

OCBC Investment Research has raised its target price for Singapore-listed palm oil firm Golden Agri-Resources (GAGR.SI) to $0.96 from $0.88 and kept its buy rating.

OCBC said it raised its earnings forecast for Golden Agri by 22.7% for this year to reflect improving margins and after it reported strong quarterly results.

Golden Agri said on Friday its first quarter net profit rose 161% from a year earlier to US$230.7 million ($287.4 million), lifted by higher sales volumes and crude palm oil prices.

However, OCBC only raised its 2011 revenue estimate for Golden Agri by 3.3% as it lowered its expectations for crude palm oil prices in the second half of the year due to increased supplies.

By 9:13 a.m., shares of Golden Agri were flat at $0.67 and have fallen 16.3% since the start of the year.

Singapore Air advances most in month on special dividend: Update

Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
Research House: Credit Suisse

Singapore Airlines, the world’s second-largest carrier by market value, rose the most in a month on the city’s stock exchange after pledging to pay S$1.20 a share in special and final dividends.

The airline climbed 2.8% to $14.66, the biggest gain since April 13. The benchmark Straits Times Index advanced 1.1%.

Singapore Air announced the dividends yesterday after rebounding travel demand following the end of the global recession helped boost annual profit fivefold. Net income in the fourth quarter declined a worse-than-expected 38% because of higher fuel costs.

“The key positive surprise is the big special and final dividend,” Credit Suisse Group AG analyst Sam Lee said in a research note today. “SIA’s valuation is not excessive, but we do not see short-term company-specific catalyst after the big cash dividend.”

Credit Suisse has an “outperform” rating and $18.50 target price for the carrier. Its forecasts are under review pending an analyst briefing today, Lee said.

The carrier’s 40 cent final dividend compares with 12 cents a year earlier. The special dividend totals 80 cents. The carrier had net cash, including investments, of $5.6 billion or about $4.70 a share, as of the end of March, Citigroup Inc. analysts led by Robert P. Kong said in a May 12 note.

PROFIT JUMP

The airline reported net income of $1.1 billion for the year ended March, compared with $216 million a year earlier. Fourth-quarter profit fell to $171 million, missing the $244 million average of four analyst estimates compiled by Bloomberg in the preceding 28 days.

The airline has hedged about 20% of this year’s fuel need at about US$130 per barrel, Chief Executive Officer Goh Choon Phong said at a press briefing in Singapore today.

In the three months ended March, the carrier filled 75.5% of total available seats, down from 80% a year earlier as capacity expansion outpaced demand, it said in a statement yesterday. Passenger numbers were little changed at 4.1 million. Yield, the average price a traveler pays to fly one kilometer, was 12.1 Singapore cents, compared with 11.1 cents a year earlier.

AIRBUS A380s

The airline intends to boost capacity 6% in the fiscal year started April 1. It expects to add eight Airbus SAS A380s, while retiring five Boeing Co. 777s and all seven of its 747-400s.

Singapore Air’s fuel bill, its biggest expense, jumped 24% to $1.24 billion in the quarter ended March 31. Jet- fuel prices averaged US$121.2 per barrel in the quarter in Singapore trading, 42% higher than a year earlier.

“The twin challenges of near-term weakness in load factors and high fuel prices will adversely affect operating performance,” Singapore Air said. “While there has been some respite in the past week, jet-fuel prices are likely to remain high and volatile in the near term.”

Eratat Lifestyle rated 'increase exposure' by SIAS

Stock Name: Eratat
Company Name: ERATAT LIFESTYLE LIMITED
Research House: SIAS

SIAS Research in a May 11 research report says: "Eratat's 1Q FY2011 results surprised us again with net attributable profit growing by 90.7% y-o-y on the back of revenue growth of 28.3%. Eratat ended 1Q FY11 with 42% of its Spring/Summer order book of RMB477 million delivered.

"With the remaining orders expected to be delivered in 2Q, we expect 2Q to be more than 30% better than 1Q, in terms of both sales and profits. Eratat's order book of RMB40 million will also be delivered in 2Q FY2011, which will propel Eratat's 2Q performance further upwards.

"The completion of Eratat's recent placement of 60 million new shares at 20.2 cents has, in our opinion, provided the company with the working capital to grow in 3Q and 4Q 2011. Intrinsic value of 43 cents. MAINTAIN INCREASE EXPOSURE."

Gallant Venture rated 'buy' by Kim Eng

Stock Name: Gallant
Company Name: GALLANT VENTURE LTD.
Research House: Kim Eng

Kim Eng Research in a May 11 research report says: "Gallant Venture reported a loss of $3 million for 1Q11, which was below our expectation. Revenue declined by 7.1% from $47.9 million to $44.5 million following a drop in utilities demand in its industrial parks as activities slowed in February during the Chinese New Year.

"No land sales were recognised in the first quarter as the transfer of land titles is still ongoing. Our forecast recognition for the year is between $30 million and $35 million. Gallant Venture has an outstanding orderbook of $55 million and management is positive on securing more land deals.

"In Shanghai, its 48%-owned project in Lao Xi Men has completed construction for the basement levels and is on track for the pre-sale launch at the end of the year. Target price of 75 cents, based on SOTP valuation. MAINTAIN BUY."

Kingsmen Creatives rated 'buy' by DMG

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

DMG & Partners Securities in a May 10 research report says: "Kingsmen achieved revenue of $36.5 million (-21.9% y-o-y) and PATMI of $1.4 million (-39.7% y-o-y) in 1Q11. Included in 1Q10 was revenue from the completion of works for the Shanghai World Expo and Universal Studios.

"1Q11 gross margins improved to 29.9%, vs 1Q10's 26.3%, as margins from work done for Universal Studios (USS) were generally low. Kingsmen has a strong balance sheet with net cash position of $25.9 million. Earnings growth over the next two years is likely to be modest, at less than 5% per annum.

"At present levels, it is trading at 6.7x FY11 P/E, which is attractive compared to its peers which are trading at an average of 8.4x. Target price of 76 cents, pegged to 9x FY11F earnings. MAINTAIN BUY."

Overseas Union Enterprise rated 'buy' by Phillip Securities

Stock Name: OUE Ltd
Company Name: OVERSEAS UNION ENTERPRISE LTD
Research House: Phillip Securities

Phillip Securities Research in a May 11 research report says: "OUE reported its 1Q11 results with revenue at $68.24 million, an increase of 42.2% y-o-y from $48 million, due mainly to higher contributions from its hotel operation and office rental income.

"Share of results of associates for the quarter was 41.3% y-o-y lower due largely to the absence of contribution from sale of residential properties by OUBC in 1Q11. PATMI was $227.6 million, an increase of 23.3% compared to the same period last year.

"We retain our RNAV estimates and fair value is thus unchanged at $4.13. The 1Q11 results were largely in-line with our estimates, new contributions from OUE Bayfront and Crowne Plaza Changi Airport Hotel in 2H11 shall pace the earnings closer to our FY2011 estimates. MAINTAIN BUY."

SIA Engineering Co rated 'outperform' by CIMB

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

CIMB in a May 11 research report says: "4Q11 net profit of $60.9 million (-18% y-o-y) was broadly in line with our expectation, though slightly below consensus. FY2011 net profit of $258.5 million (+9.5% y-o-y) forms 98% of our number. Key positive was robust operating cash inflow of $80.5 million (37% of full-year cash generation).

"In line with its higher cash inflows, SIE declared a final and special dividend per share of 20 cents, bringing total dividend to 30 cents. This translates to a 127% payout. With no major variances, we keep our earnings estimates for FY2012-2013.

"Our target price stays at $5.05, based on blended 15x CY12 P/E and DCF valuations. Catalysts could include more flights handled at Changi Airport and guidance of higher payouts (vs. typical 85%), in our view. MAINTAIN OUTPERFORM."

CIMB ups Keppel Corp to $14.00, keeps outperform

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

CIMB Research has raised its target price on Keppel Corp (KPLM.SI), the world’s biggest builder of oil rigs, to $14.00 from $13.50 and maintained its outperform rating.

Keppel Corp said on Wednesday it has secured contracts to build two high-specification jack-up rigs from Qatar’s Gulf Drilling International worth $393 million, lifting its year-to-date orders to $5.5 billion and order book to $8 billion.

In view of Keppel Corp’s order momentum, CIMB has upgraded its 2011 order target to $8.5 billion from $7.5 billion, on faster-than-expected new orders.

“Payment terms for recent contracts have improved from 20:80 bullet payments to multiple milestones across construction periods, a vote of confidence in the financing conditions of the industry,” the brokerage said in a statement.

Order momentum should continue to provide strong support for the share price, it added.

At 2:30 a.m., Keppel Corp shares were down 1.4% to US$11.44 ($14.14) on a volume of 1.6 million shares. The stock has risen 11 percent so far this year.

Sound Global rated 'outperform' by CIMB

Stock Name: SoundGlobal
Company Name: SOUND GLOBAL LTD.
Research House: CIMB

CIMB in a May 11 research report says: "1Q11 net profit of Rmb65.8 million (+44.5% y-o-y) met Street and our expectations, at 19% of our FY2011 forecast (1Q typically makes up 19-20%).

"Strong contributions from the EPC portion (Rmb262.6 million sales) stood out, with 40% attributable to its Marafiq contract in Saudi Arabia. We are keeping our earnings estimates and target price of 98 cents, still set at 14x CY12 P/E (3-year forward average).

"Other than the faster-than-expected contributions from its higher-margin Marafiq contract in Saudi Arabia that should feature prominently in FY2011, BOT contract awards in China and possibly in Taiwan are expected to provide stock catalysts. MAINTAIN OUTPERFORM."

OKP Holdings rated 'increase exposure' by SIAS

Stock Name: OKP
Company Name: OKP HOLDINGS LIMITED
Research House: SIAS

SIAS Research in a May 10 research report sayd: "OKP handed in another impressive set of results with 1Q FY11 net attributable profit growing by 49.4% y-o-y to $5.2 million. This set of results confirmed that 4Q FY10's record net margin of 15%-16% is being repeated as OKP takes on more complex projects, while managing its costs tightly.

"Currently, the high value design and build contracts, i.e. the CTE widening and TPE interchange projects, make up for almost 50% of OKP's current order book of $375.8 million. Largely as a result of the TPE project, OKP's order book was increased by 21.2%.

"We raised our FY2011F PATMI forecast from $19.3 million to $22.8 million. OKP continues to trade at a very attractive FY11F P/E of only 3.3x on an ex-cash basis. Intrinsic value of 95 cents (previously 93 cents). MAINTAIN INCREASE EXPOSURE."

Tiong Seng Holdings rated 'buy' by Kim Eng

Stock Name: Tiong Seng
Company Name: TIONG SENG HOLDINGS LIMITED
Research House: Kim Eng

Kim Eng Research in a May 11 research report says: "Tiong Seng announced a net profit of $2.1 million for 1Q11, albeit still short of our expectation. Revenue grew by 14% to $56 million, from $49 million a year ago, thanks to an increase in work done for ongoing projects such as The Wharf Residence and The Volari, as well as maiden recognition from the NUS staff housing project.

"Net profit fell by 30% y-o-y with the completion of major JV projects last year, including the Sentosa integrated resort and the MBFC Phase 1. Tiong Seng had recognised a total of $56 milion from its orderbook with gross margin rising to 13%, from 10% in 1Q10.

"There is still a strong orderbook of $1.1 billion to be recognised over the next 12-30 months, one of the highest among its listed peers. Target price of 33 cents, based on SOTP valuation. MAINTAIN BUY."

United Engineers rated 'outperform' by CIMB

Stock Name: UE
Company Name: UNITED ENGINEERS LTD ORD
Research House: CIMB

CIMB in a May 11 research report says: "1Q11 core net profit of $29 million met our expectation and consensus, at 26% of our FY2011 forecast. Revenue growth was driven mainly by the sale of Print Media Hub while development revenue was flat on lower recognition, with the completion of both Rochester and Park Central @ AMK expected in 2011.

"Incorporating its recent Bendemeer site win, we raise our FY11-13 earnings estimates by 2-4%. Target price rises from $3.21 to $3.26, still pegged at a 15% discount to RNAV.

"Valuations remain compelling at 0.6x P/BV, underpinned by investment properties (both completed and under construction) which should contribute more than 60% to UE's GAV even after the Bendemeer site acquisition. MAINTAIN OUTPERFORM."

ASL Marine Holdings rated 'neutral' by CIMB

Stock Name: ASL Marine
Company Name: ASL MARINE HOLDINGS LTD
Research House: CIMB

CIMB in a May 10 research report says: "3Q11 core profit of $3.7 million (-50% y-o-y) forms 11% of our FY2011 forecast, with 9M11 core profit of $17 million forming 51% of our forecast due to lower revenue from all segments and margin compression in ship repair/ conversion.

"Net profit of $8 million (-14% y-o-y) was broadly in line with our expectation ($10 million) and consensus (9m), helped by a $4.3 million gain from vessel disposal. We lower our FY2011-2013 estimates by 12-19% to account for lower revenue and margins.

"Our target price drops to 70 cents from 81 cents, still based on 7.5x CY12 P/E (7-year trading average). ASL is one of the cheapest small-cap stocks in the sector, trading at 0.7x P/BV. Stronger-than-expected order wins from shipbuilding and ship-repair/conversion could lead to our re-rating. MAINTAIN NEUTRAL."

HTL International rated 'sell' by DMG

Stock Name: HTL Int
Company Name: HTL INT'L HOLDINGS LIMITED
Research House: DMG

DMG & Partners Securities in a May 9 research report says: "HTL reported 1Q11 net profit of $0.1 million, down 98.9% from the previous corresponding quarter.

"This is attributed to: (1) 10% y-o-y fall in revenue to $135.6 million, (2) forex loss of $4.0 million versus $0.2 million loss in 1Q10 and (3) rising production and material input costs. Revenue fall was due to a 10.9% y-o-y decline in sofa sales to $124.4 million and a 3.5% y-o-y decline in home furnishings sales to $11.1 million.

"We revise lower our sales and earnings estimates by 3-4% for FY2011 and FY2012 respectively to take into account lower than expected sales. Lower target price of 46 cents, pegged to an unchanged 8x FY11F P/E. MAINTAIN SELL."

BBR Holdings rated 'buy' by DMG

Stock Name: BBR Hldg
Company Name: BBR HOLDINGS (S) LTD
Research House: DMG

DMG & Partners Securities in a May 9 research report says: "BBR's 1Q11 earnings were above expectations, more than doubling to $9.4 million. This was attributable to higher construction revenue and its maiden contribution from property development project, Lush on Holland Hill.

"On the back of a stronger than expected performance, we now estimate FY2011 earnings to come in at $29.1 million (+34.2% from earlier forecast) and FY2012 earnings to hit $31.9 million (+37.2% from previous estimates). We believe recent significant project wins (in terms of size and technical complexity) would strengthen its track record, boosting its chances of winning fairly sizable public sector projects ahead.

"A higher target price of 52 cents based on 5.5x FY11 P/E, the level some of its peers are trading. MAINTAIN BUY."

Singapore Telecommunications downgraded to 'hold' by DBS

Stock Name: SingTel
Company Name: SINGTEL
Research House: DBS Vickers

DBS Vickers Securities in a May 9 research report says: "We trimmed FY2012F/2013F group earnings by 4%/6% mainly due to Bharti. Bharti may grow slower than expected, eroding SingTel's appeal as a cheap proxy to Bharti. Slow adoption of Android phones in Singapore is not helping SingTel either.

"We are projecting a 70% payout ratio for FY2011F/2012F, towards the top end of SingTel's guidance of 55%-70%. Given non-compelling growth prospects, SingTel needs to (i) increase its earnings payout ratio to 80% to formulate an attractive (6.5%) dividend yield, or (ii) perform capital management proactively on top of its 70% payout ratio.

"Sum-of-the-part based target price of $3.20. The stock is trading at 12.5x FY12F PE below its 4-year average of 13.2x. DOWNGRADE TO HOLD."

Sembcorp Marine rated 'buy' from Phillip Securities

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: Phillip Securities

Phillip Securities Research in a May 10 research report says: "Sembcorp Marine reported 1Q11 turnover at $829 million (-39% y-o-y, -16% q-o-q) and 1Q11 net profit at $152 million (+ 0.1 y-o-y, -41% q-o-q).

"The results were well in line with expectations with turnover and net profit constituting 23% and 19% of FY2011 forecast respectively. Although revenue fell 39% y-o-y, which was well flagged earlier due to the rig order drought in 2009, gross profits remain relatively unchanged due to a sharper drop in cost of sales.

"Our SOTP based target price of $6.60 implies a valuation of 18x FY11E earnings, which we feel is undemanding given that the company has impressive margin growth and we have not factor in potential contract wins from Petrobras. With an upside of 21.2% to its last trading price, we maintain our Buy call on SMM at an unchanged target price of $6.60. MAINTAIN BUY."

Credit Suisse ups Sembcorp Marine to $6.60; keeps outperform

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: Credit Suisse

Credit Suisse has raised its target price on Singapore’s Sembcorp Marine (SCMN.SI), the world’s second-largest oil rig builder, to $6.60 from $6.30 and maintained its outperform rating.

Sembcorp Marine said on Monday first quarter net profit rose 1.2% though revenue fell, while margins improved due to greater operational.

Credit Suisse said Sembcorp Marine’s margin performance has surprised on the upside over the past 24 months primarily due to increased efficiency and better pricing of orders. The brokerage lifted its 2011 margin forecast to 17% from 15%. 

It also raised its order intake estimate for 2011 to $5 billion from $4 billion. Year to date, Sembcorp Marine has won $1.5 billion of orders and has another $2 billion of options in hand, Credit Suisse said.

The brokerage said it believes orders are likely to pick up in the second half of 2011 due to a combination of strong oil prices, the resumption of drilling in the Gulf of Mexico and positive commentary from offshore drillers.

At 9:48 GMT, Sembcorp Marine shares were up 0.5% at $5.61 on a volume of 1.3 million shares.

OSV rises on strong Q1 results

Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED
Research House: DMG

Shares of Singapore-listed offshore vessel builder STX OSV (STXO.SI) rose as much as 3.4% on Tuesday after the firm reported a 28% increase in its first-quarter net profit from a year earlier, helped by vessel deliveries.

At 9:05 a.m., STX OSV shares were up 2.6% at S$1.19 in volume of 2.9 million shares.

The firm reported net profit of 310 million Norwegian crowns ($70 million) for the quarter ended March 31, 2011, compared with 242 million crowns a year ago.

DMG & Partners Research said in a report that STX OSV’s first-quarter results were above its expectations on the back of strong margins and operational performance.

The brokerage said the firm’s robust order book will keep its yards busy and enquiries are picking up. It raised its target price to $1.89 from $1.75 and maintained the buy rating on the stock.

NOL up on improving container sector outlook

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: CIMB

Shares of Singapore-listed container shipping firm Neptune Orient Lines (NOL) (NEPS.SI) rose as much as 4.4% on Monday as analysts expect improving volumes and rates on the back of higher demand from the U.S. and Europe.

NOL is slated to release its first quarter result on Friday.

DnB NOR Markets said it expects the firm to be hurt by greater operating costs, which were mainly due to higher bunker prices and slightly lower-than-expected rates, but this weakness appears to have been factored into the share price.

The brokerage has a buy rating and a target price of $2.13 on NOL stock.

At midday, NOL shares were trading at $1.92 on a volume of 14.3 million shares. The stock has fallen around 12% so far this year.

NOL said last week it carried 12% more cargo in the four weeks to April 8 from a year ago, helped by higher traffic on intra-Asia and Asia-Europe routes.

CIMB Research said it expects container shipping rates to resume their uptrend in the second half this year and continue into 2012. The brokerage has an outperform rating and a target price of $2.45 on NOL.

Micro-Mechanics Holdings rated 'buy' by OCBC

Stock Name: Micro-Mech
Company Name: MICRO-MECHANICS (HOLDINGS) LTD
Research House: OCBC

OCBC Investment Research in a may 5 research report says: "Micro-Mechanics (MMH) reported its 3Q11 results which were within our expectations. Revenue rose 9.8% y-o-y to $11.1 million and net profit jumped 31.6% y-o-y to $1.7 million.

"Regarding the recent Japan earthquake and tsunami, MMH indicated that it had experienced minimal direct impact from its customers and supply chain so far. Looking ahead, MMH does not foresee any significant impact of this crisis on its FY2011 results, barring any unforeseen circumstances.

"We continue to like MMH for its healthy balance sheet (net cash) and attractive prospective dividend yield of 6.1%. We are keeping our estimates intact as its 3QFY11 results have met our expectations. Fair value estimate of 67 cents, still based on 12x blended FY2011/2012F EPS. MAINTAIN BUY."

Hi-P International downgraded to 'hold' by DBS

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

DBS Vickers Securities in a May 4 research report says: "Hi-P reported bottomline of $17.9 million, from $14 million net loss last year. Excluding $0.8 million one-offs and $5.4 million higher depreciation of PPE due to the change in accounting estimate, core profit would be $24 million, above our $19 million projection.

"Sales of $243 million were 66% higher y-o-y - in line with our projection. Gross margin improved significantly to16.3% from 4.4% in 1Q10, benefiting from economies of scale, effective cost control and better product mix. Hi-P generated $47 million FCF in 1Q as cash cycle shortened to 41 days from 44 in 1Q10.

"As a result of our earnings forecast cut, target price is revised down to $1.28, still based on 11x FY2011 PE. However, upside has now narrowed to 9%. DOWNGRADE TO HOLD."

Citi cuts Neptune Orient target price, keeps buy

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: CIMB

Citigroup has cut its target price on the world’s seventh largest container shipping firm Neptune Orient Lines (NOL)(NEPS.SI) to $2.40 from $2.50 but keep its buy recommendation on the stock.

Citi said low freight rates and the surge in bunker costs with corresponding lag in bunker surcharge implementation may hurt the company’s earnings.

NOL is scheduled to report its first quarter results on May 13 and Citi said it was expecting a net profit of more than US$30 million ($37 million), compared to a net loss of US$98 million a year ago.

The freight rates charged by the company were down by 2% on a year-on-year basis partly due to weakness in Asia-Europe routes.

Citi said rates may be near the bottom as tight capacity of container boxes as well as almost full deployment of container ships would make freight rates very sensitive to any upturn in demand.

NOL shares have declined by nearly 16% since the start of the year, underperforming the broader Singapore market which has fallen by almost 3%.

On Friday, NOL shares were up by as much as 2.8% to $1.86 as a sharp fall in crude oil price (CLc1) this week prompted investors to buy shares in the transportation sector.  

Singapore Post rated 'hold' by DBS

Stock Name: SingPost
Company Name: SINGAPORE POST LIMITED
Research House: DBS Vickers

DBS Vickers Securities in a May 3 research report says: "FY2011 net underlying profit of $149.6 million (+1% y-o-y) was in line with our expectations. Proposed final dividend per share (DPS) of 2.5 cents brings FY2011 DPS to 6.25 cents, same as last year.

"Group revenue was up 7.7% with logistics segment growing 14%, followed by 7.1% growth for mail and a stable retail segment. Expenses, however, grew faster at 10.8% y-o-y due to (i) higher traffic and labour costs and (ii) higher interest costs as Singpost raised $200 million debt in March 2010.

"Singpost would roll out a digital mail solution in 2H11 as an alternative option as physical mail is on the decline. Our target price of $1.17 is based on DDM. We maintain our FY2012F earnings estimates and assumed annual dividend growth of 2% in the long term. MAINTAIN HOLD."

Neptune Orient Lines rated 'outperform' by CIMB

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: CIMB

CIMB in a May 4 research report says: "NOL released their period 3 statistics yesterday for the four-week period from 12 March to 8 April 2011. Average rates dropped a small 0.1% sequentially from period 2, due to the continued decline in spot Asia-Europe (AE) rates and higher mix of intra-Asia (IA) volumes.

"However, daily volume rose 8% from period 2 as Chinese factories returned to work after the Lunar New Year holidays. Spot CCFI/SCFI rates show a slightly mixed picture, with increases for transpacific but continued declines in AE.

"We maintain our outperform call with potential rerating catalysts from strong US economic growth, and container shipping rates resuming their uptrend in 2H11 and continuing into 2012. Target price of $2.45. Our target price remains pegged to a P/BV multiple of 1.4x. MAINTAIN OUTPERFORM."

Hisaka Holdings rated 'increase exposure' by SIAS

Stock Name: HISAKA
Company Name: HISAKA HOLDINGS LTD.
Research House: SIAS

SIAS Research in a May 4 research report says: "Coming off a high base in FY2010 (ended September 2010), HISAKA handed in a worthy set of results for 1H FY2011 (ended March 2011). 1H FY2011 revenue hit $37.7 million or 44% of our full year forecast - well in line with our expectation taking into account industry seasonality.

"HISAKA's net profit actually grew by 15.4% or $0.6 million y-o-y, after excluding inventory and trade receivables related impairment charges and reversals. We are adjusting our revenue growth forecast for FY2012F and FY2013F to 15% and 20% respectively (previously 10% annually).

"We have already incorporated the additional 20 million shares to be listed and estimated proceeds of $9.5 million into our valuation model. Intrinsic value of 58 cents or 10.7x FY11F PER. INCREASE EXPOSURE."

Cosco Corporation (S) downgraded to 'hold' by Phillip Securities

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

Phillip Securities Research in a May 4 research report says: "Sevan Marine recently announced the completion of the initial public offering (IPO) of the shares in its ultra deepwater drilling arm, Sevan Drilling ASA. Reuters reported that Sevan Drilling has managed to raise a total of US$363 million from IPO and intent to proceed with the purchase of two newbuilds contracted with Cosco.

"Cosco Corp announced on April 13 that COSCO (Nantong) Shipyard Co Ltd. secured a contract from Seadrill to construct a new unit self-erecting tender drilling rig T-17 valued at US$66 million. With this contract, Cosco's total contract wins and orderbook to date adds up to approximately US$281 million and US$5.9 billion respectively.

"We assign a multiple of 18x FY12E P/E to derive a fair value of $2.39 for Cosco which we feel is amply justified.DOWNGRADE TO HOLD."

Citi cuts Wing Tai target to $2.05, keeps buy

Stock Name: Wing Tai
Company Name: WING TAI HLDGS LTD
Research House: Citigroup

Citigroup has lowered its target price on Singapore-listed property developer Wing Tai Holdings (WTHS.SI) to $2.05 from $2.53 but maintained its buy rating.

    

Citi said it revised downwards its earnings estimates to reflect slower-than-expected sales at some of Wing Tai’s projects, particularly Belle Vue Residences, a condominium project off Singapore’s prime Orchard Road shopping district.

Wing Tai’s taxes were also higher than its forecast, Citi said, adding that it prefers Singapore real estate investment trusts to property developers given the heightened policy risks.

However, the brokerage maintained its buy rating given Wing Tai’s attractive valuations.

At midday, Wing Tai shares were down 0.6% at $1.56 on a volume of 313,000 shares. The stock has fallen around 8% so far this year.

Macquarie raises Straits Asia to $3.80, keeps outperform

Stock Name: StraitsAsia
Company Name: STRAITS ASIA RESOURCES LIMITED
Research House: MacQuarie

Macquarie has raised its target price on Singapore-listed coal miner Straits Asia Resources (STRL.SI) to $3.80 from $3.40 and maintained its outperform rating.

Straits Asia said last week that Indonesia’s minister of forestry has issued a borrow and use license to the firm for the Northern Leases at the Sebuku mines, allowing it to begin mining work.

Macquarie said it believes the approval will lead Straits Asia to be the proxy of the ASEAN coal sector given the production size, improving governance, decent liquidity and attractive valuation.

The brokerage has increased its 2011 coal production estimate for Straits Asia to 12 megatonnes (MT) from 11.5 MT and it expects an additional 50-60 MT of reserves, on top of the current reserves of around 130 MT, with more upside upon successful exploration.

Straits Asia produced 10.6 MT of coal in the whole of 2010.

The Sebuku mines have better coal quality, which could lead to higher selling prices, as well as lower production costs, Macquarie said. Sebuku coal is one of Indonesia’s highest grades of thermal coal, according to Straits Asia.

At 10:38 a.m., Straits Asia shares were down 3.1% at $2.79 on a volume of 3.5 million shares.