10 July 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 :Tell me and I forget. Teach me and I remember. Involve me and I learn.
- BENJAMIN FRANKLIN
Singapore: The Day AheadSINGAPORE DAYBOOK:Why banks here weren't fined for rigging rates [SINGAPORE] The Monetary Authority of Singapore (MAS) did not impose fines on the banks whose traders tried to rig financial benchmark rates because rate- setting today is not a regulated activity, Lawrence Wong, Acting Minister for Culture, Community and Youth, told Parliament yesterday.
An MAS board member himself, Mr Wong was responding on behalf of Deputy Prime Minister and MAS chairman Tharman Shanmugaratnam to a question raised by Member of Parliament Ang Wei Neng, who had asked whether MAS had been too lenient in its response to findings that there were clear attempts to manipulate rates.
Referring to the US$610 million fine imposed on Royal Bank of Scotland (RBS) by UK and US regulators for its traders' rigging of the London interbank offered rate (Libor), Mr Ang said the punishment meted by MAS here was "a light tap on the hand".
Mr Wong replied: "MAS is unable to impose a specific fine because . . . we do not regulate rate-setting activities today. Neither do many other jurisdictions."
(Source: The Business Times)
MARKET SCOOP
Europtronic in MOU to sell Singapore unit to WE
SPH Reit to be priced at 85-90 Singapore cents per unit
JTC awards tender for 3 industrial sites at Tuas South St 6
SIA unveils next generation cabins
In Iskandar, SMEs face same old labour crunch
Former top China Sky execs no-show at trial
China slowing; US, Japan perking up: IMF
MAS facilitates availability of RMB to banks
(Source: The Business Times)
CIMB Securities says...
TAT HONG HOLDINGS | OUTPERFORM | TP: S$1.75
The broader market has pulled back from its May high and TAT has not been spared, retreating20% in the last one month
As there have been no operational hiccups at the company, market sentiment and the overhang from AIF's voluntary conversion could be the culprits, n our opinion
The slight negative aspect of its operations, if any, is currency-related via translation effects
Yet, we believe the dent on FY14-15 numbers will only be 2.5-4%,at the most, after speaking with management
This is not surprising, as in recent quarters, higher revenue contributions had been flowing in from Singapore and other ASEAN markets, at the expense of Australia
Contributions from Australia have been generally affected by weaker demand in the mining sector this year
We are sticking to our view that near-term earnings will increasingly be spurred by Singapore and other ASEAN markets (Thomson Line construction in Singapore in 2H13, rail projects in Malaysia and Thailand) and Hong Kong
We conservatively lower our FY14-16EPS by 2-4% for lower Australian contributions from A$ weakness
Accordingly, we lower our target price, still at11x CY14 P/E (its 5-year average forward P/E)
Reiterate Outperform with strong Asian operations still its main catalyst while potential M&As could provide icing on the cake
DBS VICKERS Securities says ...
HUTCHISON PORT HOLDINGS TRUST | BUY | TP: US$0.82
Volume growth at the Trust's HIT terminals in HK has been below par so far in FY13, with the port workers' strike in April adding to the woes
HIT volumes could be down more than 10% y-o-y in 2Q13, with the high base in H12 - arising from higher transhipment activities between newly formed liner alliance partners - further skewing the comparison
Yantian Port volumes though remain on course for mid-single digit growth as expected, but overall volumes in FY13 could be flattish, despite contribution from newly acquired ACT terminals in HK
But the worst should be over and even though Europe trade remains weak, US volumes show relatively positive signs and upcoming peak season should provide more visibility for investors
This was the key message that HPHT communicated during our Pulse of Asia investor conference in Singapore recently
US payrolls data came in better than expected recently, and while unemployment rate didn't fall, consumer sentiment is improving and US inventory to sales ratio has maintained its upward momentum, giving us some confidence that trade flows in 2H13 will improve
In line with lower volume estimates, we moderate our FY13/14 DPU expectations by about 7%/ 6% to 5.3UScts/ 5.9UScts
Our TP is adjusted down to US$0.82
HPHT share price has corrected significantly in line with market sentiment, and we believe it has more than priced in lower DPU expectations
Maintain BUY in light of healthy yield promise amid the uncertain macro environment.
A trade recovery by 2H13 could provide an additional cyclical leverage boost to the stock price
DMG OSK Securities says...
KINGSMEN CREATIVES | BUY | TP: S$1.08
Kingsmen Creatives is in a dispute with Premier Inc (Premier) over a purported breach of intellectual property in relation to the work done for the Titanic Exhibition in The Venetian Macau
The case is still on-going, but management expects no major impact to its financials.
At this juncture, Venetian has only held back SGD0.4m
Business fundamentals remain healthy for Kingsmen, with a good pipeline of projects
Its success in thematic and scenic construction puts it in a favourable position to secure other theme park projects
On top of that, it has a net cash balance of SGD49.3m (SGD0.26 per share) as at end 1Q13
Maintain BUY with TP of SGD1.08 |
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