OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: UtdEnvirotech
Company Name: UNITED ENVIROTECH LTD

Research House: DBS Vickers

Price Call: HOLD

Target Price: 0.90

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED

Research House: OSK-DMG

Price Call: HOLD

Target Price: 11.23

Stock Name: GP Hotels
Company Name: GLOBAL PREMIUM HOTELS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.33

Market Compass

22 August 2013~ Good Morning Singapore!

Singapore Idea Snippets:

22 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 : Education... has produced a vast population able to read but unable to distinguish what is worth reading. - G. M. TREVELYAN Singapore: The Day Ahead SINGAPORE DAYBOOK :US Fed mulls reverse repo plan to achieve rate target THE US Federal Reserve is considering a new tool to help drain cash from the banking system and keep short-term interest rates on target when it shifts from its current cheap-money policy, minutes of the Fed's July policy meeting showed on Wednesday. Fed policymakers were briefed during the July 30-31 meeting on the potential for creating a fixed-rate facility for overnight reverse repurchase agreements, or reverse repos. "They are setting the stage for an eventual policy tightening by sometime in 2015," said Mary Beth Fisher, head of US interest rates strategy at SG Corporate & Investment Banking in New York. Reverse repos go together with the interest the Fed pays on excess reserves and the term deposit facility as tools to control short-term interest rates when the central bank is ready to normalize rates from their rock-bottom levels. (Source: The Business Times) MARKET SCOOP Blackstone to sell London office stake to GIC: report Sembcorp joint venture to launch US$135m IPO in Oman S'pore July inflation seen accelerating for 3rd straight month CapitaLand could do strata sales at Westgate Tower Neo Group expands into Indonesia PEC's Q4, full-year earnings up; boost from core divisions Albedo's planned RTO excites market (Source: The Business Times) DBS Securities says... UNITED ENVIROTECH | HOLD | TP: S$0.90 United Envirotech was awarded RMB100m (~S$20m) BOT contract by the government of Yantai City for a municipal wastewater treatment project in Shandong Province, China This BOT is a 25-year concession to build and operate a wastewater treatment plant utilising UENV's membrane bioreactor technology (MBR) for capacities of 30,000m3/day for Phase 1, reaching 80,000m3/day upon completion of Phase 2 Under the terms of the BOT contract, the minimum off-take quantity is 70% of the design capacity for Year 1 and it will be stepped up to 100% in 4 years' time Contract value met 25% of our FY14 new win assumption of RMB400m Additional capacity from this contract is slightly higher than our forecast We had expected UENV to acquire another 50, 000m3/day of capacity with the remaining S$18m proceeds from KKR While the full designed capacity is ahead of expectation, development in phases implied that a longer time is needed to reach full utilization Hence, no material changes to our estimates No change to our forecast, S$0.90 TP and Hold call In terms of expectations, we hope to see UENV catches up on EPC contracts to meet FY assumptions whereas anymore BOT/TOT/acquisitions would pose upside to our DCF valuations of the Treatment business DMG OSK Securities says ... KEPPEL CORPORATION | NEUTRAL | TP: S$11.23 Keppel FELS bags a fresh US$280m deal with Floatel Keppel Corp (KEP) announced a new contract worth USD280m (SGD358m) to build an accommodation semisubmersible (semisub) for Floatel This is the fifth unit ordered by Floatel The price for this unit is higher than the previous order for a similar design in June 2011 at USD260m YTD offshore & marine (O&M) order win has reached SGD4.11bn, making up 69% of our FY13 new order forecast, and net order book is estimated at SGD14.2bn We keep our EPS estimates and TP unchanged We maintain Neutral rating with a SGD11.23 TP OCBC Securities says... GLOBAL PREMIUM HOTELS | BUY | TP: S$0.33 Further to its announcement dated 27 May 2013 in relation to the proposed establishment of a S$300m multicurrency medium term note programme, Global Premium Hotels (GPH) has announced that it has on 20 August 2013 established the programme, under which it may issue notes from time to time Please note that OCBC Bank has been appointed by GPH as the arranger of the programme We note that the MTN programme will increase the funding flexibility for GPH We maintain our fair value of S$0.33 and BUY rating on GPH