Company Name: LIPPO MALLS INDO RETAIL TRUST
| Research House: OCBC | Price Call: HOLD | Target Price: 0.45 |
Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
| Research House: OCBC | Price Call: HOLD | Target Price: 10.85 |
Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD
| Research House: OCBC | Price Call: BUY | Target Price: 3.81 |
Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 2.00 |
Stock Name: Lian Beng
Company Name: LIAN BENG GROUP LTD
| Research House: OCBC | Price Call: BUY | Target Price: 0.47 |
MARKET PULSE: LMIRT, SIA, Telecoms, STE, STX-OSV, Lian Beng |
11 Oct 2012 |
| KEY IDEA Lippo Malls Indonesia Retail Trust: Acquiring four properties Summary: LMIRT has announced the proposed acquisitions of four properties from non-interested parties. Two properties, Palembang Square and Palembang Square extension, would be LMIRT's first malls in Palembang. The third and fourth properties are Tamini Square and Kramat Jati Indah Plaza (KJI), which are located in East Jakarta. All four properties are to be purchased at a discount to book value. Including the aggregate purchase consideration of ~S$180.7m and the acquisition fee payable to the manager, as well as professional fees and other expenses, the total acquisition fee is expected to be S$188.1m. As to be expected, management is proposing to finance the acquisitions from the proceeds raised from the issuance of S$250m worth of notes in early Jul. Incorporating the acquisitions into our model, we maintain our fair value of S$0.45 and our HOLD rating on LMIRT. (Sarah Ong) MORE REPORTS Singapore Airlines: Caution over fuel prices Summary: Despite a reported slowdown in global demand for air transport, Singapore Airlines (SIA) managed to hold its own amidst the challenges, and turn in a decent performance relative to the industry. For the first eight months of the year, passenger demand for SIA was slightly higher on the back of a similar pace of capacity expansion. Although SIA's passenger load factor was slightly lower versus the industry average, it remained within our expectations given SIA's slightly higher capacity base. Going forward, we see capacity management as essential in minimizing downward pressures on passenger yields, especially with the success of SIA's promotional fare strategy. In addition, jet fuel prices remain a key risk to profitability for the year and it could remain elevated for the rest of the year. While SIA's cargo traffic looks likely to stay weak given Asia-Pacific's greater share of global traffic, we believe most of the weakness has already been priced in. Maintain HOLD with an unchanged fair value estimate of S$10.85. (Lim Siyi) Telecoms Sector: SingTel gets BPL on non-exclusive basis Summary: SingTel has secured the broadcast rights for the 2013-2015 Barclays Premier League (BPL), further adding to its suite of soccer content. Interestingly, it was on a non-exclusive basis, meaning that SingTel is not required to make the content available to other Pay TV operators under the Cross Carriage ruling. And it also means that StarHub can separately negotiate for the same broadcast rights. While StarHub could win back some Pay TV customers should it secure the rights, we do not believe that it is crucial for the telco to do so. After all, it has done fairly well without BPL content for the past three years. It is also important to note that StarHub could be looking at a smaller pie than before. Until we see further developments in this space, we believe status quo should continue. We have an OVERWEIGHT view on the sector due to its defensive nature and relatively attractive dividend yields. (Carey Wong) ST Engineering: ST Aerospace secured S$590m of new contracts in 3Q12 |
| Lian Beng: 1QFY13 down from lumpy property recognition Summary: Lian Beng announced 1QFY13 (ended 31 Aug 2013) PATMI of S$10.5m - down 44.9% YoY - mostly due to the absence of a one-time S$7.9m disposal gain from an investment property sale in 1QFY12 and no profit contributions from the fully sold 55%-owned industrial development, M-space, which can only be recognized at TOP in FY14, as stipulated by the accounting standard INT FRS 115. 1QFY13 top-line also came in 16.5% lower YoY at S$113.4m similarly due to lower contributions from the property development segment. Looking ahead, the group expects to launch Spottiswoode Suites and Hougang Plaza, both 50%-owned, later in the financial year. We would speak with management regarding 1Q results later today and, in the meantime, put our Buy rating of Lian Beng and fair value estimate of S$0.47 UNDER REVIEW. (Research team) For more information on the above, visit www.ocbcresearch.comfor the detailed report. |
NEWS HEADLINES - US stocks fell on Wednesday as Alcoa Inc. cut its global aluminium demand forecast and Chevron Corp. warned of lower earnings. The Dow declined 1% to close at 13,344.97. The S&P 500 Index fell 0.6% to close at 1,432.56. - Fraser and Neave's independent financial advisers say that the S$8.88-a-share offer by the Thai consortium is fair but not compelling. - OUE has confirmed that it was the party that made the made an offer to acquire the hospitality business of F&N for an aggregate consideration of ~S$1.4b. |
Technical indicators MACD and RSI giving weak signal for STI today 12-Oct. STI having Resistance @ 3050 and above this level it may take resistance from 3085-3115 levels.
ReplyDeleteref: SGX Singapore