SG: MARKET PULSE: Genting Singapore, Marco Polo Marine, Midas (6 Jun 2013)

Stock Name: Genting SP
Company Name: GENTING SINGAPORE PLC

Research House: OCBC

Price Call: HOLD

Target Price: 1.41

Stock Name: Marco Polo
Company Name: MARCO POLO MARINE LTD.

Research House: OCBC

Price Call: HOLD

Target Price: 0.51

Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.54

MARKET PULSE: Genting Singapore, Marco Polo Marine, Midas

6 Jun 2013

KEY IDEA Genting Singapore: Upgrade to HOLD on valuation Genting Singapore (GS) recently saw a pretty sharp tumble in share price, falling some 14% to a recent low of S$1.41, after we downgraded our call from Hold to Sell; this on the company posting slightly softer-than-expected 1Q13 results on 2 May. We have already pared our estimates after its 1Q13 results and we see no need for any revision for now. But we upgrade our rating from Sell to HOLD as the current share price is hovering around our unchanged DCF-based fair value of S$1.41. (Carey Wong) MORE REPORTS Marco Polo Marine: Ceasing coverage After BBR's listing on the Indonesia Stock Exchange early this year, Marco Polo Marine (MPM) has been increasingly branding itself as an entity for investors to gain exposure to Indonesia's growing offshore sector. Demand for larger sized AHTS vessels in Indonesia is expected to increase, benefitting owners such as MPM. Meanwhile, the ship repair business has seen a slow-down, which management thinks is seasonal. The ship chartering business, on the other hand, provides a steady base load of earnings. The long-term future of MPM looks bright, but time would be needed for significant earnings growth and a re-rating of the stock. We last rated MPM a HOLD with a fair value estimate of S$0.51. Due to a re-allocation of internal resources, we are ceasing coverage on this counter. (Low Pei Han) Midas Holdings: JV NPRT and consortium partners clinches CNY1.1b metro contract Midas Holdings (Midas) announced that its 32.5%-owned JV company Nanjing SR Puzhen Rail Transport (NPRT) has, together with its consortium partners Shanghai ALSTOM Transport Electrical Equipment and ALSTOM Transport S.A., clinched a CNY1.1b metro contract. This is for the supply of 29 train sets (or 174 train cars) for the Nanjing Metro Line 4 Phase 1 project. Delivery is scheduled from 2014 to 2016. Although NPRT's percentage share of the contract was not disclosed, we believe that it may be around the 70-75% range, after taking reference from previous contract wins by NPRT and its consortium partners. This would equate to a contract amount of ~CNY770-825m for NPRT, which is a sizeable win, in our opinion. Maintain BUY on Midas, with an unchanged fair value estimate of S$0.54, pegged to 1.1x FY13F P/B. (Wong Teck Ching Andy)

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

NEWS HEADLINES - US stocks tumbled on Wednesday for a second session as data on US private-sector job growth darkened views of the monthly nonfarm-payrolls report to be released in two days. - United Fiber System is starting afresh its bid to acquire Jakarta-listed coal miner PT Golden Energy Mines through a reverse takeover deal. - A tight labour market continued to raise workers' salaries last year, although the 2012 growth rate was lower compared to 2011 due to weaker economic conditions, says a new Ministry of Manpower report. - Singapore's future competitiveness will be enough to keep it as the most competitive city in Asia and the third most competitive city globally in 2025, according to a projection by the Economist Intelligence Unit. - Tiong Woon Corporation has entered into a MOU to sell its oil & gas services subsidiary to Metech Energy Corp for S$18m. - Two companies in the overseas real estate business, Dolphin Capital Asia and Shenton Wealth Holdings, have recently been put on MAS Investor Alert List.