28 June 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 :Being an intellectual creates a lot of questions and no answers.
- JANIS JOPLIN
Singapore: The Day AheadSINGAPORE DAYBOOK:SingTel, Yoma lose out on Myanmar bids. Norway's Telenor and Qatar's Ooredoo outbid nine others to win the licences SINGAPORE-LISTED companies Singapore Telecommunications (SingTel) and Yoma Strategic Holdings have been shut out of two highly sought mobile licences in Myanmar that the authorities awarded yesterday.
Norway's Telenor and Qatar's Ooredoo beat out nine other bids to take the licences, wire services reported. France's Telecom-Orange, with Japan's Marubeni Corp, was named as a reserve, in case negotiations between Telenor or Ooredoo and the Myanmar authorities fall through.
This is the first time that Myanmar is opening mobile telco licences to foreign players.
SingTel, which had been seen as a frontrunner by market observers, was in a consortium with Myanmar's KBZ Group and Myanmar Telephone Co.
(Source: The Business Times)
MARKET SCOOP
Freight Links FY profit up 19.1%, raises dividends
China Fishery says to start arbitration against Veramar
No client data compromised by hacking: Eu Yan Sang
Private pre-schools eligible for government's Anchor Operator Scheme
Keppel Reit's portfolio to improve through Melbourne acquisition: Moody's
URA releases sales details for Havelock hotel site
Changi Airport passenger traffic up 4.7% in May
LTA to tender for operators of short bus routes in 2H13
(Source: The Business Times)
UOB KAY HIAN says...
KEPPEL REIT | BUY | TP: S$1.64
Keppel REIT (KREIT) has announced the acquisition of a 50% interest in 8 Exhibition Street, Melbourne from United Super Investments for A$160.2m (S$192.4m)
The 35-storey freehold prime office building has a NLA of 480,309sf and is 100% leased to well-established tenants in the financial, aviation, financial advisory, tax and transaction services sectors
KREIT has paid a deposit of S$9.6m with the remaining S$182.8m due upon completion of the transaction around 1 August 2013
DPU accretive with pro-forma 2.4% accretion to DPU if the transaction were fully funded by debt
However, gearing is estimated to rise from 43.3% in 1Q13 to 45.2% post-transaction if fully debt-funded
Management has guided that it will be looking to fund the transaction with an optimal mix of debt and equity, as the transaction will bring gearing above the 45% level
However, any equity fund raising conducted will be balanced to ensure that the transaction remains DPU accretive
The transaction is relatively small, representing about 2.9% of total asset valuations of S$6.6b
We retain our estimates pending further details on the financing for the transaction
We remain currently have a BUY on KREIT with a target price of S$1.64
DBS VICKERS Securities says ...
YOMA STRATEGIC HOLDINGS | BUY | TP: S$1.08
Yesterday, Myanmar's Parliament voted to delay awarding the licenses until a new telecommunications law governing the industry is passed
Members of the Parliament agreed that the "industry risked being monopolised" if the winners of the telecommunications license were announced before a new telecommunications law is passed in the country
In addition, it was also proposed that only foreign companies with a local joint-venture partner should be granted a telecommunications license, although it is unclear whether this new rule will be adopted
Some of the foreign bidders, including a consortium of Orange and Japan's Marubeni Corp. and Bharti Airtel, are competing for a license without a local partner
The Telecommunications Operator Tender Evaluation and Selection Committee is the independent body that oversees the bid but members of Parliament said that the decision from its lower house would override the authority of the Telecommunications Operator Tender Evaluation and Selection Committee
Hence, it is now unclear when the winners will be announced
Although bureaucratic delays are common in frontier markets, we hope that the delay will not be for too long as these developments - telecom networks and airports - are the new government's first attempts to revamp the country
It is crucial that the government shows that they are able to plan and execute the country's development forward
As mentioned in our earlier reports, we do not expect and have not imputed into our forecast any earnings impact from this telco bid
Maintain BUY and S$1.08 TP
OCBC Securities says...
YOMA STRATEGIC HOLDINGS | HOLD | TP: S$0.87
Yoma has requested for a trading halt last night pending the expected award of two telecommunications licenses today by the Myanmar authorities
However, latest news reports that the parliament had on Wednesday voted to delay the award until a new telecommunications law governing the industry is passed
This is due to concerns that the "industry risked being monopolized" and it is yet unclear if a proposed new rule - that only foreign companies with a local JV partners would be granted licenses - would be adopted
Given these latest updates, we believe that the license award could possibly be delayed as the decision from the parliament is purported to override that of the Telecommunications Operator Tender Evaluation and Selection Committee, which is overseeing the tender process
Maintain HOLD with a fair value estimate of S$0.87 |
No comments:
Post a Comment