20 Aug 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 : At his best, man is the noblest of all animals; separated from law and justice he is the worst.
- ARISTOTLE
Singapore: The Day Ahead
SINGAPORE DAYBOOK : With spending set to rise, will taxes follow? Analysts feel the wealthy may have to pay more taxes [SINGAPORE] All good things have to be paid for, Prime Minister Lee Hsien Loong said in his National Day Rally on Sunday night, raising the possibility of higher taxes.
Observers BT spoke to yesterday think that taxes may be raised in the next couple of years - with more falling on the wealthier - to ensure that the long-term healthcare, housing and infrastructure initiatives announced by the Prime Minister can be paid for.
In addition, a higher portion of investment returns on Singapore's reserves is likely to be channelled into the government's spending wallet, instead of being squirrelled away as reserves. And, the policy of locking proceeds from government land sales away as reserves may also be reviewed some time down the road, they said.
"For now, we can afford these measures from existing revenues," Mr Lee said on Sunday. (Source: The Business Times)
MARKET SCOOP
China Mining International to become pure mining firm through RTO
SGX aims to reduce board lot size to 100 units
CDL sells 76% of Lush Acres EC
Cedar Strategic plans 1-for-2 rights issue for up to 3b new shares
CMA's unit in MOU with Changi to jointly develop Project Jewel
Changi Airport reveals concept plans for 'Project Jewel'
(Source: The Business Times) DMG OSK Securities says... KINGSMEN CREATIVES | BUY | TP: S$1.08
KMEN's 2QFY13 PATAMI grew 4.3% y-o-y to SGD5.4m, on the back of a 12.7% increase in revenue
Revenue for the interiors division saw a robust 33.8% y-o-y growth but this was partially offset by a 25.7% y-o-y decline in revenue from the exhibitions & museums division, as fewer major exhibitions are held during the odd years
KMEN's orderbook stands at SGD294m, of which SGD232m is expected to be recognised in FY13
These projects include works for a few regional theme parks, the five-year F1 Singapore Grand Prix and interior fit-outs for a number of international brands
We expect its orderbook to grow further as demand for its services remains strong, which would boost 2H13's performance
KMEN has a net cash balance of SGD54.4m (or SGD0.28 per share) and it declared an interim dividend of SGD0.015 per share
Maintain BUY for stable dividends with a TP of SGD1.08, based on 8x FY13 P/E (ex-cash)
OCBC Securities says ...
CACHE LOGISTICS TRUST | BUY | TP: S$1.30
After staying quiet for over four months following the completion of the Precise Two acquisition on 1 Apr, we believe Cache Logistics Trust (CACHE) may now be close to striking another acquisition deal in the near term
On last Friday evening, CACHE announced the incorporation of four wholly owned subsidiaries, including a 100% stake in Cache Polar Logistics Warehouse (Shanghai) Co., Ltd
While no further details were given regarding the purpose of these entities except they are either investment holding or warehousing and logistics service companies, we are of the view that CACHE may be looking to acquire a warehouse facility in Shanghai, China from a third party vendor, possibly logistics solutions provider Polar Logistics Group
We note that CACHE's financial position is one of the strongest among the S-REITs space
As at 30 Jun, CACHE's aggregate leverage stood steady at 29.2%, giving it a sizeable debt headroom of circa S$100m before reaching the 35% gearing level
While we do not rule out any equity funding for potential investment opportunities (including our acquisition belief above), CACHE clearly has the financial resources and flexibility to take on attractive acquisitions as they arise, in our opinion
To recap, CACHE turned in a firm set of 2Q13 results, with DPU growing by 8.4% YoY to 2.147 S cents notwithstanding an enlarged unit base post private placement in Mar
This was chiefly driven by rental escalations from its existing portfolio assets and full-quarter contribution from Precise Two
We remain positive that CACHE will meet our FY13-14 forecasts, if it continues to be successful in its search for earnings-accretive targets
We are keeping our forecasts unchanged for now, but as we transition our RNAV valuation method to the dividend discount model, our fair value is trimmed to S$1.30 from S$1.40
We maintain our BUY rating on CACHE
OCBC Securities says...
ROWSLEY LIMITED | BUY | TP: S$0.67 TO S$0.85
Last Thursday, Rowsley received the approval in-principle from SGX for its proposed acquisitions of RSP Group and the Vantage Bay site in Iskandar, and a 2-for-1 bonus issue of warrants
Management reports that it would dispatch a circular and convene an EGM to seek shareholder approval in due course
We note that, on 2 Aug 2013, management announced that "barring unforeseen circumstances, the deal should complete in the second half of 2013 after regulatory and shareholders' approval."
In our research piece, we carry out an analysis of Rowsley's value under a successful RTO scenario, and also under a failed RTO scenario
If Rowsley's proposed deal fails, we value each existing Rowsley share at approximately S$0.034 - its book value per share as at end Jun 2013
However, if the deal succeeds, we calculate from our analysis a value of S$0.67 to S$0.85 for each existing Rowsley share (before the 2-for-1 warrant issue ex-date)
|
No comments:
Post a Comment