MARKET PULSE: Triyards, CRCT (4 Feb 2013)

Stock Name: Triyards
Company Name: TRIYARDS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 1.07

Stock Name: CapitaRChina
Company Name: CAPITARETAIL CHINA TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.72

MARKET PULSE: Triyards, CRCT

4 Feb 2013

KEY IDEA Triyards Holdings Ltd: Undemanding valuations; initiate with BUY Summary: With two yards in Vietnam and a fabrication facility in the US, Triyards Holdings Ltd (Triyards) is an engineering and fabrication solutions provider focused on the offshore oil and gas industry. Unlike many shipyards, the group has a strategic focus on the construction of self-elevating units (liftboats), having established a significant track record. Originating from Ezra Holdings which holds a 67% stake currently, Triyards may be able to be involved in some of the projects that Ezra undertakes and tap into Ezra's clientele base. Trading at 6.7x FY13F EPS and 5.7x FY14F EPS, Triyards's valuations are undemanding. Based on 8x FY13/14F earnings, we derive a fair value estimate of S$1.07. Initiate with BUY. (Low Pei Han) MORE REPORTS CapitaRetail China Trust: Additional AEI for Minzhongleyuan Summary: CRCT's 4Q12 results were generally in line with our expectations. Gross revenue climbed by 3.9% YoY to S$37.9m and net property income rose 6.0% YoY to S$24.2m. The portfolio was valued at RMB7.6b, up 4.7% from Jun 2012. The AEI at MZLY is being fast-tracked, with temporary closure of the mall from Jul 2013 and completion by 2Q14 as opposed to end 2014 as initially planned. Estimated capital expenditure has been increased from RMB74m to RMB103m and expected return on AEI investment falls from 10.8% to 10.1%. Increasing our longer-term growth rate assumptions, which were conservative previously, our fair value increase from S$1.56 to S$1.72 but we maintain our HOLD rating on CRCT on valuation grounds. (Sarah Ong)

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NEWS HEADLINES - US stocks rose on Fri on positive jobs and manufacturing data, lifting the Dow above 14,000 for the first time in five years. The Dow gained 1.1% to 14,009.79, the S&P 500 index rose 1% to 1,513.17 and the Nasdaq ended 1.2% higher at 3,179.10. - The 6.9m population figure in the recent White Paper is not a government target but the upper bound of a 6.5m to 6.9m projection range that Singapore needs to prepare for in making infrastructure plans, Minister in the Prime Minister's Office S Iswaran said. - Mobile phone distributor mDR Ltd is buying two privately held companies - Pixio, an outdoor advertising firm in Malaysia and Quanli, a leather accessories maker in China - to broaden its business footprint and ensure steady earnings flow. - Rowsley Ltd has signed sale and purchase agreements to acquire RSP Architects Planners & Engineers and a 9.23-hectare plot of land in Iskandar Malaysia for S$545m in total, in an all-share deal as part of a reverse takeover intended to transform Rowsley into a property player. - Epicentre Holdings expects a loss for the six months to 31 Dec 2012, due in part to the closure of its operations in China.