Monday, March 18, 2013

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Nam Cheong
Company Name: NAM CHEONG LIMITED
Research House: UOB KayHianPrice Call: BUYTarget Price: 0.34

Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED
Research House: CIMBPrice Call: BUYTarget Price: 1.45

Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED
Research House: OCBCPrice Call: BUYTarget Price: 0.595




Market Compass


18 March 2013~ Good Morning Singapore!


Singapore Idea Snippets:

18 March 2013~ Good Morning Singapore!

Central Execution Team - Trading For A Living

This product is made available by your Central Execution Team, for you as TRs of OCBC Securities to help you with your business and therefore it is confidential and only for internal circulation. It is not intended for onward circulation to non-OSPL TRs, clients or any other third party in this or any other version. Neither is this intended to be relied upon as a sole basis for any recommendation. TRs must also consider their clients' investment objectives, financial position and needs when intending to make or making any recommendation. For the front desk, by the front desk. All feedback to make this a better product is welcome.


Global Flash: While You Were Sleeping





Source: Marketwatch

Quote for the day : He who is not courageous enough to take risks will accomplish nothing in life.

-MUHAMMAD ALI

Singapore: The Day Ahead

SINGAPORE DAYBOOK : S'pore M&A slow to rouse after 2012's party

[SINGAPORE] Singapore merger and acquisition (M&A) activity had its slowest start in four years as announced deal volumes fell 13.5 per cent year-on-year in the first quarter of 2013, according to preliminary data compiled by Thomson Reuters.

Total announced deal volume for transactions involving Singapore-based parties was US$6.4 billion (S$8 billion) year-to-date, compared with US$7.4 billion (S$9.3 billion) in the first quarter of 2012. This was the weakest first quarter since 2009's US$2.4 billion (S$3 billion) start.
Coming off a record 2012 in which mega deals such as the takeover of Fraser and Neave dominated headlines, the sluggish tone so far this year has been especially stark.


MARKET SCOOP

SingTel to review Optus satellite business
SembMarine gets US$417m order for two rigs
S'pore Feb NODX down 30.6% y-o-y
Reits with more offshore assets set to be listed here
Tender for JTC wastewater treatment plantlaunched
Urban Vista 43% sold after launch weekend



UOB KAY HIAN Securities says...

NAM CHEONG | BUY | TP: S$0.34

We see Nam Cheong as a key beneficiary of a recent pick-up in Malaysian offshore activity, being the largest Malaysian OSV shipyard with 50-75% domestic market share
OSV tendering activity is expected to pick up on the back of Petronas' 34 vessel requirements in 2013, coupled with about 30 additional vessels required for the Pan Malaysian Hook-Up and Commissioning project
Nam Cheong is scheduled to deliver 25 build-to-stock vessels in 2014, worth a total of US$520m
Nam Cheong has utilised about half of the S$160m raised from its recent share placement and medium-term note (MTN) issuance
More vessel sales due to a larger 2014 shipbuilding programme
Maintain BUY and target price of S$0.34, implying a 36% price upside, based on 9.7x 2014F PE (2014F EPS: 8.8 sen or 3.5 S cents)


CIMB Securities says...

EZRA HOLDINGS | OUTPERFORM | TP: S$1.45

Ezra is making its name in the Norwegian North Sea with the recent order wins from Det norske oljeselkap and Statoil
Its current share price, which is at a six-month low, provides good buying opportunities
Contracts won since Sep 12 totalled about US$685m, in line with our US$900m target for FY13
We think Ezra is making good albeit slow progress in the subsea world with its US$1bn order book
Our target price is also intact, still pegged at 12x CY14 P/E (5-year mean of small/mid-cap industrials)
Catalysts could come from a stronger 2H13 and more order wins


OCBC Securities says...

MIDAS HOLDINGS | BUY | TP: S$0.595

We view news of China's Ministry of Railways' (MOR) dissolution and subsequent restructuring as a mid-to-long term positive for the railway sector
However this reform may result in some near-term uncertainties over the timeline of new high-speed railway (HSR) contract tenders
Midas recently secured a total of CNY109.6m worth of contracts to supply aluminium alloy extrusion and fabricated parts to five metro projects in China
While there is still a lack of clarity on when the resumption of HSR contract tenders would materialise, we expect management to continue its negotiation process for more contracts from the metro/subway, international rail transport, power and industrial machinery industries to act as a near-term buffer
Reiterate BUY and S$0.595 fair value estimate on Midas (1.2x FY13F P/B), which implies total potential returns of 16.5%



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