01 Oct 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 : People won't have time for you if you are always angry or complaining.
- STEPHEN HAWKING
Singapore: The Day AheadSINGAPORE DAYBOOK :$2.5m boost for next big water treatment tech. Grant for 7 firms to develop used-water treatment methods. THE government has given seven local enterprises a collective $2.5 million to develop innovative technologies to treat used water, to boost the country's water reclamation capacity and capabilities.
The grant from Spring Singapore and PUB will allow the firms - comprising small and medium-size enterprises (SMEs) and start-ups - to develop applications to treat both industrial and domestic used water. The funding follows a grant call from Spring and PUB last December, under which SMEs and start-ups were encouraged to put forward pitches on how to treat used water.
Currently, Singapore produces 330 million gallons of used water per day - which can fill more than 600 Olympic-size swimming pools. The amount of used water is expected to grow in tandem with the demand for water and is expected to double by 2060.
Among ideas pitched by participating firms which clinched the funding is Envirotech and Consultancy's treatment of oily used water.
(Source: The Business Times)
MARKET SCOOP
Singapore-listed Cosco says Li Yun Pengwill replace Ma as chairman
More time for firms to file financials in full XBRL: ACRA
Electricity tariffs to rise by an ave 0.5% for Oct-Dec 2013
Riviera Point goes on collective sale for $68m
Olam joins list of 87 Ivory Coast cocoa exporters: CCC
Ezion to buy 45.15% of enlarged Ocean Sky, inject marine ops
SingHaiyi to buy all of Tri-County Mall for US$45m
Roxy-Pacific gets nod for Yi Mei Garden enbloc purchase
Nam Cheong sells 4 vessels for US$120m
(Source: The Business Times) OCBC Securities says... CAPITALAND | BUY | TP: S$3.77
Over the weekend, CapitaLand (CAPL) launched the 694-unit Sky Vue condominium
project near the Bishan MRT station, and saw a strong sales performances with 430 units sold out of 505 units released for sale
The average selling price of the units sold was ~S$1,500 psf - which was 5% to 10% lower than those at the adjacent 509-unit Sky Habitat project
We like that the group has taken a rational approach, in terms of pricing, to move units during the Sky Vue launch
The strong sales performance will significantly reduce the group's unsold exposure in the locality from over a thousand units at Sky Habitat and Sky Vue to ~600 units currently
We continue to favor large cap developers with strong balance sheets and diversified exposure across regional real estate markets
Maintain BUY on CAPL with an unchanged fair value estimate of S$3.77
DBS Securities says ...
NAM CHEONG LTD | BUY | TP: S$0.36
Nam Cheong announced a significant vessel sales contract this morning worth US$120m for four Platform Supply Vessels to be delivered in FY14
The customer is an emerging offshore marine services company based in Latin America, and this is Nam Cheong's first direct sale to this region, though its vessels have been previously deployed there by other customers
These 3,200 dwt PSVs are high specs vessels with DNV-class and equipped with DP-2 system and diesel-electric propulsion
At US$30m each, the pricing is within expectations
With the sale of these four vessels, Nam Cheong has now sold 20 vessels worth a total of US$432m in FY13, and is well on track to beat the record of 21 vessels sold in FY12
In terms of vessel value, FY13 sales are already ahead
We estimate 18 of the 19 vessels scheduled to be completed in FY13 and about 13 out of the 25 vessels scheduled to be completed in FY14 have now been sold already
To recap, Nam Cheong has a bigger planned completion schedule of 25 vessels worth about US$520m in FY14
The group's FY15 new building programme has not been disclosed yet but could likely be bigger than FY14
Apart from the built-to-stock series, Nam Cheong is also building four ERRVs for deployment in the North Sea and four MPSVs for Bumi Armada on a built-to-order basis
Their orderbook now stands at about RM1.7bn
This underpins robust estimated earnings CAGR of 17% for the Group in FY13/14
Given that the pace of vessel sales has been ahead of expectations YTD in FY13, there is potential for positive earnings surprises in 2H13
Maintain BUY with TP of S$0.36 UOB KAY HIAN Securities says... GENTING HONG KONG | BUY | TP: US$0.49
Genting Hong Kong is reportedly reviving a plan to raise up to $500m in an IPO of their Manila casino-resort operator, people familiar with the matter said Friday
The company plans to start taking orders from institutional and retail investors early October and list by the end of that month, two people familiar with the deal said (Source: Media reports)
The revival of Travellers' IPO is within expectations (see our RMN on 20 Sep 13)
The reported IPO size, at US$500m, would value Travellers at US$5b (assuming the IPO involves the listing of 10% of its shares), vs the initial IPO attempt, which was thought to fetch US$6b-8b, but still creates significant shareholder value to GENHK, noting that our conservative forecasts and valuation valued the entity at US$2.2b (around 9x 2013F EV/EBITDA)
Valuing Travellers at US$5b would raise our SOTP/share for GENHK to US$0.69, from US$0.55 currently (assuming the IPO dilutes GENHK's stake to 45%)
We note that at US$5b, Travellers would be valued at almost 20x 2013F EV/EBITDA (based on our conservative forecasts) - above that of Bloomberry (current market capitalization of about US$2.5b, with an implied 2014F EV/EBITDA of 11.5x based on consensus forecasts), noting Travellers higher profitability and larger facilities (particularly with its on-going expansion plan which should come on-stream starting from mid-15)
Reiterate BUY and SOTP target price of US$0.49 on GENHK
We reckon the IPO would be timely, enabling Travellers to capitalise on its market leadership in the Philippines' casino market and the recovery in investor sentiment
Indicatively, should Travellers be valued at US$5b, GENHK's target price could be as high as US$0.55 assuming a 20% discount to SOTP |
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