18 March 2013~ Good Morning Singapore!
Central Execution Team - Trading For A Living
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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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