SG: MARKET PULSE: Roxy-Pacific, Bumi Aramada (10 Jul 2013)

Stock Name: Roxy-Pacific
Company Name: ROXY-PACIFIC HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.76

MARKET PULSE: Roxy-Pacific, Bumi Aramada

10 Jul 2013

KEY IDEA Roxy-Pacific Holdings: Acquiring KL site near upcoming Quill City ROXY announced that it has acquired, for RM470k, a 47% stake in Macly Equity Sdn Bhd (Macly) which owns a 70k sq ft land site in Kuala Lumpur, Malaysia at Jalan Dewan Sultan Sulaiman. We understand this land site was acquired for RM89.8m by Macly and that ROXY is finalizing a JV agreement whereby it would likely fund the remaining commitment via a shareholder loan with the site valued at cost. This site has a total GFA of 686k sq ft and is strategically located beside the upcoming Quill City (a 7-acre mixed development on Jalan Sultan Ismail), the Sheraton Imperial Hotel and monorail Stations to Bukit Bintang. From our calculations, this acquisition would likely accrete 2.4 S-cents to ROXY's RNAV. Maintain BUY with a higher fair value of S$0.76 (30% RNAV disc.) from this acquisition, versus S$0.74 previously. (Eli Lee) MORE REPORTS Bumi Armada Berhad: Pipelay contract from Lukoil Bumi Armada Berhad has signed a MYR567.6m (USD178.5m) contract with OAO Lukoil for pipelay work in the Filanovsky and Korchagin fields of the Caspian Sea. The work will be carried out using Bumi Armada's derrick pipelay barge, the Armada Installer. Majority of the construction is expected to be carried out and completed in 2015. With the new contract, the group's T&I order backlog increases to over MYR2b (USD 629.4m). As the new contract already forms part of our previous contract win assumptions, we will be keeping our forecast unchanged. Maintain HOLD with unchanged fair value estimate of MYR3.74. (Chia Jiunyang)

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

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