Company Name: Q & M DENTAL GROUP (S) LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 0.98 |
Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD
| Research House: CIMB | Price Call: BUY | Target Price: 3.88 |
Stock Name: TCT
Company Name: TREASURY CHINA TRUST
| Research House: CIMB | Price Call: BUY | Target Price: 3.38 |
15 June 2011 / Singapore |
Trades of the Day... |
| Fundamentally: |
| When was the last time you saw your dentist?- Not yesterday at our Corporate Focus Series Lunch Talk we hope. Well, even if it was, the dentists at Q&M (QNM SP; S$0.83, BUY, TP S$0.98)had good news for you. China expansion remains on track and IFC recently gave QNM its vote of confidence by taking a stake in the dental Group. |
What's Relevant... |
| Singapore's lack of market moving newsflow in saw the STI ending just 1.65 points lower yesterday. Top 20 actives saw familiar names, Genting Singapore, Golden Agri, Cosco Corp and Dyna-Mac.Technically, the chart suggests that the index could push higher towards 3,180 though low trading volumes are a negative. No reason for the STI not to open higher given the positive close on the US markets overnight. |
Corporate News... |
| STX OSV. Faster-than-expected improvements in North Sea demand reaffirm our belief in a stronger order momentum for STX OSV in 2H11. Longer-term, STX OSV's growth is underpinned by booming Brazil demand. Take note that the North Sea rebound is not merely seasonal. It signals a sustained recovery. Our FY11 order target of NOK10bn (excluding Transpetro orders) has a high chance of being achieved. OUTPERFORM, Target Price S$1.70, based on 11x CY12 P/E (15% discount to rigbuilders' 5-year mean). ST Engineering has secured four AHTS orders worth S$171m from Swire Pacific. Vessels are expected to be delivered progressively from 1H13 to 1H14. Judging from the contract prices, we believe that the AHTS are of 12,000 bhp or in the medium class range. This order may seem surprising given that this asset class remains plagued by oversupply. However, we note that the medium class of AHTS consist only 3% of global AHTS fleet and is not as overcrowded as the smaller classes. Although a recovery in aviation MRO spending has somewhat been blunted by macro issues (Europe debt contagion, U.S growth concerns), we remain optimistic about a gradual recovery. Stronger quarters ahead and a pick-up in Aerospace could catalyse the stock. OUTPERFORM, Target Price S$3.88. Empty vessels make the loudest noise.Well, you'll sure be glad that Treasury China Trust is not one. The Company has been showing its confidence in its own business with unit buy backs recently. The latest was yesterday with 78,000 units bought back at S$2.00 per unit. So far, the Company has bought back 1.04% of its issued units. BUY, Target Price S$3.38. |
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