SG: MARKET PULSE: Tiger, CWT (20 May 2013)

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.79

Stock Name: CWT
Company Name: CWT LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.08

MARKET PULSE: Tiger, CWT

20 May 2013

KEY IDEA Tiger Airways: Roaring success in FY14? Tiger Airways (TGR) reported a decent set of 4Q13 results to close out the year with a second consecutive quarter of core operating profit. This helped overturn 1H13 losses and TGR recorded a FY13 overall core operating profit of S$7.3m (FY12: -S$83.4m) and its net loss narrowed to S$45.4m from S$104.3m a year ago. In the coming quarters, we expect TGR SG to continue exhibiting strong growth prospects and carry the group forward. Passenger demand has remained healthy for the group and the planned capacity increases for FY14 will allow it to capitalise on this demand. Despite the risk of a drag from its associates, we remain hopeful for a positive core net profit performance for FY14. Maintain BUYrating on TGR with an unchanged fair value estimate of S$0.79. (Lim Siyi) MORE REPORTS CWT Ltd: Growing the trading wing CWT Ltd's 1Q13 revenue jumped 39% YoY to S$1.5b, while net profit was flat at S$27m. 1Q results were in-line with ours and the street's expectations. The surge in 1Q revenue was mainly driven by its newly established trading business (Commodity SCM) which resulted in higher volume, and the inception of a new product line. At the same time, the group incurred higher administrative expenses relating to the costs of establishing new operations. The group's logistics operations were largely business-as-usual. Looking ahead, we expect operating leverage to kick in for the Commodity SCM business and the group to expand its logistics capacity with the developments of three large warehouses in Singapore. Maintain BUY with unchanged FV of S$2.08. (Chia Jiunyang)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES -Mapletree Investments is looking to ramp up its overseas business and potentially list a REIT made up of office assets in Japan in two years. - Sembcorp Industries has entered into a joint venture with Oman's Takamul Investment Company to develop a centralised utilities complex, which costs around S$1b, to service the Duqm SEZ. -Indian firms flock to Singapore debt market, with Tata Motors being the latest to do so, raising S$350m through 5-year bonds. - Mercator Lines (Singapore) has posted a US$77.7m net loss for FY13 ended 31 Mar, versus a net profit of US$7.8m the previous year. - OCBC has announced that the Shanghai Financial Services Office has on 25 April 2013 approved the establishment of a Renminbi fund. -Yahoo!'s board has approved a deal to purchase the popular blogging platform Tumblr for US$1.1b (S$1.35b) in cash.