OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: MapletreeCom
Company Name: MAPLETREE COMMERCIAL TRUST

Research House: CIMB

Price Call: HOLD

Target Price: 1.47

Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 3.90

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: UOB KayHian

Price Call: SELL

Target Price: 0.63

Market Compass

24 April 2013~ Good Morning Singapore!

Singapore Idea Snippets:

24 April 2013~ Good Morning Singapore! Central Execution Team - The Excellence of Execution 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 : Everyone here has the sense that right now is one of those moments when we are influencing the future. - STEVE JOBS Singapore: The Day Ahead SINGAPORE DAYBOOK:China knocked back by weak PMI. New export orders fall, hinting at tepid growth in Q2. IN a sign that China is heading for stagnant growth in the second quarter, advance indications released show that growth in its manufacturing sector fell this month, dragged down by new export orders. China's flash purchasing managers' index (PMI) compiled by Markit and HSBC came in at 50.5 points, against 51.6 points in March. Societe General economist Yao Wei said, following publication of the data: "This release paints a picture of a painfully slow recovery in China's manufacturing sector." Asian shares mostly fell yesterday after the data was released. Shanghai tumbled 2.57 per cent to 2,184.54; Hong Kong was down 1.08 per cent at 21,806.61. MARKET SCOOP Hong Leong Finance Q1 net profit falls 8.9% MIT posts Q4 DPU of 2.37 cents, up 6.8% First Reit posts DPU of 1.74 cents in Q1 JTC awards sites in Tuas Bay Walk, Buroh Crescent S'pore inflation eases to 3.5% in March, down from 4.9% in Feb Synear temporarily shuts Sichuan plant, warns production and sales will be affected F&N falls to 9-mth low as listing to be kept Passenger traffic hits a new high at 4.6 m CIMB Securities says... MAPLETREE COMMERCIAL TRUST | NEUTRAL | TP: S$1.47 4QFY13/FY13 DPUs came in slightly above our and consensus expectations, forming 27/102% of our FY13 forecast We expect upside from rental reversions at VivoCity to peter out in FY14 4Q DPU was up 12% yoy, thanks to positive rental reversions off a lumpy lease expiry profile and higher occupancy on existing assets VivoCity, a star performer, remains in the pink of health as it booked a 33% increase in fixed rents, while shopper traffic and tenant sales grew by 3.0% and 3.7% respectively Further leasing progress was made at PSAB Office and ARC, taking their committed occupancy to 100% and 81.9% respectively With strong rental reversions and acquisition accretion, we believe that MCT has set a high growth benchmark in FY13 that will be difficult to replicate in FY14 Trading at 1.4x P/BV and forward yields of 4.7%, we think that positives are largely priced in and further upside will have to come from major AEIs and acquisitions OCBC Securities says... WILMAR INTERNATIONAL | BUY | TP: S$3.90 Wilmar International Limited (WIL) has acquired a strategic 27.5% stake in Cosumar SA - a Morocco-based sugar producer; Cosumar is also the sole sugar supplier in Morocco and the third largest sugar producer in Africa WIL intends to focus the MAD2.3b (US$263m) acquisition with internal resources and bank borrowings WIL further believes that Cosumar provides the group with the opportunity to service a large and growing structural deficit in sugar in Morocco and the surrounding regions of Southern Europe, Northern and Western Africa While we see the latest acquisition dovetailing nicely with WIL's strategy of becoming a global sugar player, the near term impact is likely going to be muted by still-weak sugar prices Nevertheless, sugar experts believe that Asia will now be the engine for consumption growth, noting that the average level of sugar consumed in China is still very low at 10-11kgs compared to 24kgs globally Weaker sugar prices not withstanding, we believe that WIL's large distribution network in China puts the group in a good position to capitalize on the expected increase in sugar consumption there Maintain BUY with an unchanged S$3.90 fair value (based on 15x FY13F EPS) UOB KAY HIAN says... TIGER AIRWAYS | SELL | TP: S$0.63 Australian authorities approve Tiger Airways, 60% sale of Tiger Australia to Virgin Australia Tiger Airways s will book in approximately S$120m in gain on disposal of Tiger Australia, which will now become an associate Tiger Airways and Virgin Australia have committed to invest a further A$62.5m to fund growth in Tiger Australia Tiger Australia will pay Tiger Airways an annual licence fee based on % of revenue for 20 years Operationally, this is however positive as Tiger Australia will take over some of Tiger Airways fleet delivery and thus free it from capital constraints Tiger Airways is now free to focus on growing its business out of Singapore and its associates in Indonesia and Philippines We have valued Tiger Airways at 1.4x 2014 P/B, which is a premium to most airlines and have derived a fair value of S$0.63 The low fuel price environment remains the primary positive for the airline in the near term