02 April 2013~ Good Morning Singapore!
Central Execution Team - The Excellence of Execution
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Global Flash: While You Were Sleeping
Source: Marketwatch
Quote for the day : Education is the most powerful weapon which you can use to change the world.
- NELSON MANDELA
Singapore: The Day Ahead
SINGAPORE DAYBOOK: SPH to pay up to $60m for sgCarMart. CEO says acquisition will add to the breadth of SPH's online classifieds portfolio. [SINGAPORE] Singapore Press Holdings (SPH) yesterday agreed to pay up to $60 million in cash for popular online car portal, sgCarMart (SGCM).
The deal includes SGCM's online vehicle classifieds site, car auction platform, online marketing site as well as a service provider for car loans, insurance and settlement services.
SPH's announcement yesterday said that it had agreed to buy all of the issued shares of SGCM Pte Ltd from its current owners, and to purchase certain trademarks and other intellectual property rights from SGCM and its subsidiary, Quotz Pte Ltd. It added that the maximum purchase price of $60 million was arrived at "following arm's length negotiations on a willing-buyer, willing-seller basis and taking into account, inter alia, various factors such as the existing assets, intellectual property rights, goodwill, financial position and business prospects of SGCM".
MARKET SCOOP
CapitaLand restructures Surbana Corp
S'pore, Malaysia and Thailand set common standards for securities offering
CAO starts operation of joint-venture oil terminal in S Korea
Demonstrations hit HPH Trust's HK port
No bid for STX Corp's shares in STX Pan Ocean
Koyo adjusts FY12 results for Poh Lian receivables
HDB resale price index up 1.2% q/q in Q1
Private property prices rose less in Q12013: URA
CIMB Securities says...
NOBLE GROUP | OUTPERFORM | TP: S$1.47
Slower economic activity, heightened risk aversion and earnings disappointments have pinned Noble's share price near to all-time lows
The IMF now projects an acceleration of global growth in 2013-2014, suggesting that Noble's fortunes could be turning
The stock screens well not just relative to its historical trading band but also against its peers, from both P/E and P/BV perspectives
Higher economic activity and consumption will spur demand for raw materials, leading to improved earnings
Against a backdrop of low expectations and low ownership, any positives from earnings surprises and a return of risk appetites could spark Noble's rerating
FY13 will be a year of earnings recovery, driven by sustained profits from energy and metals, coupled with normalisation of agriculture profits, which tumbled to a record low in 2012
We maintain our Outperform rating, EPS estimates and target price (10.1x CY14 P/E, 0.5SD below the 5-year mean)
UOB KAY HIAN says...
SMRT CORPORATION | SELL | TP: S$1.30
SMRT has announced that the group is expected to report a net loss for 4QFY13
This is in line with deteriorating profitability due to: a) increasing operating costs coupled with a lack of fare increments, and b) a S$17m non-cash goodwill impairment for SMRT's associate, Shenzhen ZONA Transportation Group Co. Ltd
In our view, SMRT is likely to cut full-year dividends from 8.5 S cents and 7.45 S cents in FY11 and FY12 respectively to an expected 6.1 S cents for FY13, on the back of heavy capex commitments and increasing gearing
We expect staff headcount and repair and maintenance costs to continue escalating on the back of higher service, reliability and operational performance standards
We have slashed our FY13 and FY14 profit forecasts by 25% (11% excluding one-off impairment loss) and 5% respectively, due to the S$17m goodwill impairment and higher-than expected wage cost increases
Maintain SELL with a DCF-derived target price of S$1.30 (no change), assuming 7.1% cost of equity and 1.5% terminal growth
DMG OSK Securities says...
KEPPEL CORPORATION | NEUTRAL | TP: S$11.21
Keppel announced orders for four KFELS B Class jackup rigs from Mexico-based drilling company, Grupo R, for USD820m (SGD1bn)
The four KFELS B Class design rigs will delivered between 2Q2015 and 4Q2015
We reiterate our view that Singapore yards may find it hard to raise prices to expand margins due to the rush of the Chinese yards into the jackup market with near guaranteed take-out financing
The orders lifted its YTD order book to SGD1.59bn, 32% of our full-year forecast of SGD5bn
In our view, jackup rigs will be the key order driver this year as the fleet renewal cycle is still intact and few orders were placed last year
We are neutral on the stock: i) unexciting EPS growth as margins return to normal levels; ii) property earnings will see significant decrease due to absence of lumpy earnings in FY13; iii) valuation is fair at 14.3x FY13F P/E given slowdown in earnings |
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