MARKET PULSE: Noble Group, TEE International (7 March 2013)

Stock Name: Noble Grp
Company Name: NOBLE GROUP LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 1.19

Stock Name: Tee Intl
Company Name: TEE INTERNATIONAL LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.30

MARKET PULSE: Noble Group, TEE International

7 Mar 2013

KEY IDEA Noble Group: Focus on asset recycling, cost savings We recently attended Noble Group's (Noble) post-results analyst briefing and one of the key takeaways was management's focus on maintaining an "asset light" strategy with opportunistic capital recycling. Another key takeaway was the focus on cost savings, including interest savings. While it is good that Noble has taken steps to improve its operations, we note that the macro picture continues to be quite challenging in the medium term, especially for its Agricultural business. As such, we maintain our HOLD rating on the stock with an unchanged S$1.19 fair value. (Carey Wong) MORE REPORTS TEE International: Property spin-off looks on track TEE International announced recently (22 Feb) that it would inject S$16m worth of its property assets into wholly owned subsidiary TEE Land, as part of its plans to spin off its real estate business and list it separately on SGX by May. Certain pre-IPO investors have also agreed to invest S$4m in TEE Land when the restructuring is complete. Although TEE's share price has declined in recent days, we expect its share price to remain supported in the near term by expectations of a special dividend if its plan succeeds. Still, we prefer to remain cautious on TEE until we see stronger contributions from its real estate business, after its weak 2QFY13 results. We maintain our fair value estimate of S$0.30 and HOLD rating for TEE. (Conrad Tan)

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NEWS HEADLINES - US stocks finished mostly higher on Wednesday, with the Dow Jones notching another record high with a 0.3% rise after an encouraging report on private-payrolls growth. - Three companies - Yong Xin International Holdings, Matex International and China Oilfield Tech - have been added to the SGX watch-list. - S-REITs delivered the region's highest dividend yield as at the end of last month, according to the latest month-end Asia Index Report produced by the FTSE Group. - Global Logistic Properties Limited said it had signed 15,000 sqm of new leases at its first development in Changzhou, China. - Global Strategic Holdings announced plans to raise S$246.8m in a rights issue, just two weeks after it said the Lippo group and a PE fund have invested S$37.5m in it. - The Singapore government's latest moves to ensure Singaporeans get a fair chance at higher-skilled jobs continued to win MPs' approval on the Budget debate in Parliament. - The Monetary Authority of Singapore has announced that it will, for the first time, review the financial products industry. - Non-executive directors (NED) in Singapore companies saw a moderate increase of 5.3% in their annual average fees per NED to S$52k in FY11/12.