13 Sept 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 : All this talk about equality. The only thing people really have in common is that they are all going to die.
- BOB DYLAN
Singapore: The Day AheadSINGAPORE DAYBOOK :StarHub e-magazine store set for October launch. It'll offer 50 titles at first, to non-StarHub subscribers as well [SINGAPORE] StarHub is poised to be the latest telco to jump into the e-magazine fray with a service that is slated for launch early next month, The Business Times has learnt.
This e-magazine service, which currently has the working name of StarHub eMags, will have a website storefront and an app. It will be open to all consumers, including non-StarHub subscribers, according to a source.
The Android version of the app is expected to be launched first, followed by an iOS app for Apple devices later in the year. At least 50 titles are supposed to populate the store at launch-time.
"We believe digital publishing in Singapore has growth potential, given the high penetration of smart mobile devices among consumers here," said Stephen Lee, head of StarHub's i³ division, when contacted by BT yesterday. i³ is a relatively new division of the telco, set up to handle the group's digital doings.
(Source: The Business Times)
MARKET SCOOP
China Gaoxian responds to CAD'srequest
OCBC opens RMB1 bln China HQ in Shanghai
Guthrie GTS to delist as privatisation offer succeeds
SP AusNet fails in tax appeal
WE Hldgs makes S$8.8m placement
Centurion to build 4,100-bed dorm
SingTel, Optus win A$530m ANZ deal
SembMarine wins US$346m Helix deal
(Source: The Business Times)
DBS Securities says... CAPITARETAIL CHINA TRUST | BUY | TP: S$1.60
The coming two years could be transformational for CRCT
After fine-tuning its portfolio tenant mix and the completion of various asset enhancements, CRCT's portfolio of malls have been consistently seeing strong shopper traffic and tenant sales, resulting in higher rental reversions (averaging 17% over 2Q12-2Q13) compared to the average of 12% over 1Q11-1Q12
With a renewed tenant mix and a stronger operational footing, we believe this trend is likely to continue going forward
In addition, CRCT aims to deliver earnings alpha through planned inorganic growth initiatives via (i) refurbishment of CapitaMall Mingzhongleyuan Mall and (ii) proposed acquisition of Grand Canyon Mall, which when completed in 1H14 will be key growth catalysts for CRCT
Apart from a robust FY13-15F DPU CAGR of 7% (almost doubling its organic growth potential), CRCT's earnings base will also broaden and will be further diversified
Contribution from its multi-tenanted malls will increase to 79% of net property income, meaning that the trust earnings should better reflect underlying performance
BUY maintained, TP S$1.60
We see value emerging after the recent price decline
The stock offers an attractive FY13-15F DPU yield of 7.0%-8.3%, which is higher than the S-REIT peer average of 6.3-6.7%
UOB KAY HIAN says ...
HALCYON AGRI CORP | BUY | TP: S$1.00
Halcyon Agri Corp (HACL) has entered into a term sheet with Mr Basuki Prawono Winata and Mr Hendrik Oking for the acquisition of a rubber processing factory in Jambi Province, Indonesia, together with all associated buildings, plant and machinery and leasehold land on which these assets are located and operated
The assets are owned by PT. Golden Energi
The factory produces SIR20 grade rubber and has an annual export capacity of 18,000 tonnes, with significant scope for further upgrades and expansion
Purchase consideration is US$7m, arrived at after arm's length negotiations
This will be funded through internal resources and/or bank borrowings
The terms are being negotiated and subject to due diligence and the negotiation and execution of definitive agreements
The proposed acquisition is targeted to be completed by end-13
Jambi province is part of Sumatra island and neighbours South Sumatra, where HACL's two existing factories are situated
The targeted factory produces SIR20, one of HACL's existing rubber variants
We see scope for significant synergies between the two operations with regard to maximizing cost efficiency and productivity
It is highly likely that SIR20-VK, the premium variant of SIR20, will eventually be produced in the Jambi factory as well
Management has always intended to achieve an annual midstream production capacity of about 360,000 tonnes (~1,000 tonnes per day)
Assuming HACL's pending acquisitions and asset enhancements are completed, its annual capacity will reach 350,000 tonnes by 2015
We think management will undertake asset enhancements to increase the capacity in Jambi factory
We also do not rule out the possibility of another acquisition of similar size
We are comfortable with the company's current debt level
We note the possibility of an equity fund-raising exercise within the next 3-6 months
The potential dilution will be offset by the completion of its two midstream acquisitions in 4Q13 (targeted), which could begin contributing as early as end-13 or 1Q14
Maintain BUY and target price of S$1.00 based on a peer-average 2014F PE of 10x
No change to our forecasts for now pending completion of the above DMG OSK Securities says... YANGZIJIANG SHIPBUILDING | BUY | TP: S$1.31 We upgrade Yangzijiang Shipbuilding (YZJ) from Neutral to BUY with a higher TP of SGD1.31 vs SGD1.00 previously
In our view, the shipbuilding capacity cut in China and the recovery of ship orders in the dry bulk sector arising from improved supply and demand will drive the stock's re-rating
Our SGD1.31 TP implies 9.5x FY14F P/E
The Baltic Dry Index jumped 120% YTD and 54% in the past month due to slower supply growth while demand remains steady
Ship prices have risen by 5-12% from the bottom six months ago, and seasoned shipping players are expanding their fleet aggressively
Strength in dry bulk sustainable as fleet growth is slowing down
Our analysis shows that global dry bulk demand will start outpacing supply by early 2014
We estimate global dry bulk capacity to grow 4.8%/4.4%/3.0% in 4Q13/2014/2015 while global demand is likely to rise by 5-6% annually
We believe the recovery in ship orders and closure of inefficient yards in China will benefit YZJ
Good visibility from USD3.4bn order book
YTD, YZJ has secured USD1.22bn in new orders for 35 ships - making up 60% of our estimate - and has options for 51 ships worth USD2.87bn
The options are split into 22 container ships (USD1.79bn) and 29 bulk carriers (USD1.08bn)
The company's USD3.4bn (CNY20.9bn) outstanding order book, equivalent to 19 months of shipbuilding output, provides strong visibility in times when other yards are struggling for new orders
We upgrade YZJ from Neutral to BUY and raise our SOP-derived TP to SGD1.31 from SGD1.00
Our TP is based on: i) 12x P/E on FY14F shipbuilding earnings (previously 8x), ii) net cash and financial assets, and iii) less debt and amount due to customers
Our SGD1.31 TP is premised on a 9.5x FY14F P/E |
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