20 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 : The art of leadership is saying no, not saying yes. It is very easy to say yes.
-TONY BLAIR
Singapore: The Day AheadSINGAPORE DAYBOOK: Eurozone still ready to help Cyprus after vote BRUSSELS - Eurozone finance ministers said Tuesday they still stood ready to help Cyprus after the island's parliament voted down a debt bailout accord which included an unprecedented bank deposit levy.
"I confirm that the Eurogroup stands ready to assist Cyprus in its reform efforts and reiterate the position of the Eurogroup" given Monday when it offered easier bank levy terms so as to reduce the impact on smaller savers, Dutch Finance Minister Jeroen Dijsselbloem said in a brief statement.
Monday's statement suggested that Cyprus spare any account under 100,000 euros - the same amount as EU deposit guarantee norms introduced at the height of the debt crisis in an effort to reassure savers unnerved by collapsing banks.
MARKET SCOOP
Midas bags US$29.4m Russian contract
Ascott opens first Citadines in Indonesia, M'sia
Rickmers' S$98.5m rights to repay loans
Cache's S$84.2m issue oversubscribed
MAYBANK KIM ENG Securities says...
SHENG SIONG GROUP | BUY | TP: S$0.70
Sheng Siong will launch its e-commerce platform in 1H13. Despite being a latecomer to online retailing, we believe this move is a step in the right direction as shopping on the Internet will inevitably erode traditional grocery shopping in the future
While Sheng Siong may be a late comer, it has had ample opportunity to study the online grocery shopping model to (1) avoid spending excessive investment and (2) get the products offering right
Sheng Siong has set aside approximately SGD20m of the net proceeds from its IPO for the development and expansion of grocery retailing in Singapore and overseas
The initial stage will not require much investment, as it will leverage on its warehouse capabilities, then systematically picked by workers in stores
We expect the online channel will take at least a couple of quarters to gain momentum and will be rolled out progressively by district
We have a Street-high TP of SGD0.70 on our favourite supermarket due to its healthy FY13 growth and 4+% yield on the back of a 90% fixed payout for the next two years
UOB KAY HIAN says...
CACHE LOGISTICS TRUST | BUY | TP: S$1.45
Cache Logistics Trust (Cache) announced the private placement of 70m new units (or 9.9% of total units) at an issue price of S$1.24 to raise gross proceeds of S$86.8m
Proceeds will be used to fund the earlier announced (Feb 13) acquisition of Precise Two, a newly completed three-storey ramp-up logistics warehouse, for S$57.3m, (66% of gross proceeds)
Advanced distribution of 2.12 S cents per unit for existing unitholders has been announced by Cache for the distributable income for the period 1 Jan 13 to 26 Mar 13
With an NPI yield of 8.7%, the acquisition of Precise Two would be yield accretive (1% accretion to DPU if acquired and held through 2012) even when fully-funded by equity (current DPU yields are 6.5%)
We believe CWT Logistics Hub 3 remains the most likely potential acquisition candidate from Cache's sponsor pipeline, with a potential estimated acquisition value of S$170m
Maintain BUY with a lower target price of S$1.45 (from S$1.52) factoring in the DPU dilution. We use DDM (required rate of return: 6.5%, terminal growth: 2.0%) to value Cache
DBS VICKERS Securities says...
YOMA STRATEGIC HOLDINGS | HOLD | TP: S$0.80
Yoma announced three investments totalling US$14.55m to expand its hospitality business from Yangon to Bagan to capitalise the tourism boom in Myanmar
All acquisitions would be made via Chindwin Holdings, a 70/30 JV company set up between Yoma and FMI
Acquisition of a 75% stake in SLTG, the only hot air balloon operator in Bagan that operates "Ballons over Bagan" (BoB) in Bagan, which has been in operation for the last 14 years. Based on 9M2012 figures, this business would contribute 23.06% to Yoma's profits upon completion of the deal
Acquisition of a 75% interest in 21.16 acres of land in Bagan, conditional upon the owner's ability to secure a permit to construct and operate a hotel business
Acquisition of a 75% stake in luxury tour operator Eastern Safaris Pte Ltd (ESPL) for US$0.1m. This is a company that offers exclusive and luxurious tours in Myanmar and Bhutan
Stock price performance also depends on the market's tolerance/appetite for potential fund raising exercises, thereby diluting existing shareholder interests
No change to our estimates pending more details and confirmation of acquisitions. Maintain HOLD, TP: S$0.80
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