21 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 : As a teenager you are at the last stage in your life when you will be happy to hear that the phone is for you.
- FRAN LEBOWITZ
Singapore: The Day AheadSINGAPORE DAYBOOK : Singapore Exchange lifts trading curbs on three linked companies [SINGAPORE] Singapore Exchange Ltd (SGX) is to lift trading curbs on three inter-linked companies whose S$8.7 billion (US$7 billion)slump in combined market value in just two days earlier this month had sparked criticism of the SGX's market controls.
SGX said on Friday it was lifting curbs on Blumont Group Ltd , Asiasons Capital Ltd and LionGold Corp Ltd, restoring their full access to the equity market.
Trading in the three had been suspended on Oct 4 after their shares suffered dramatic reversals from massive increases built up earlier this year. SGX subsequently declared them "designated securities", meaning traders could not short-sell them and had to pay for any purchases with cash upfront.
These trading curbs, the first to be imposed on any Singapore-listed stocks for five years, will be lifted on Monday, though SGX said on Friday it would continue to monitor trading of all three.
(Source: The Business Times)
MARKET SCOOP
M-DAQ raises S$14.5m in Series B financing
Noble Group invests in Australia's Cockatoo, sells stake in Blackwood
Fosun to buy One Chase Manhattan Plaza in New York for US$725m
CCT's Q3 DPU estimated at 2.04, sees positive rent flow in 2014
Sembcorp to build S$189.9m water facility in China
(Source: The Business Times)
DBS VICKERS Securities says ...
KEPPEL CORPORATION | BUY | TP: S$12.90
Stripping out exceptional gains, Keppel's core net profit grew 17% q-o-q to S$403m in 3Q13, largely in line with expectations
The key highlight was the stronger than expected O&M operating margin that expanded 2.3ppts q-o-q to 16.5%, attributable to more deliveries of KFELS B class jack ups and higher repair margins for certain projects
However, this was offset by lower O&M revenue recognition resulting from slower orderbook drawdown
Property income rose 70% q-o-q to S$201m, driven by home sales in Singapore and China
9M13 net profit amounted to S$1.08bn, forming 71% of our full year estimate
We believe Keppel's order win momentum will continue to gather steam in the next few months, underpinned by robust potential orders in the pipeline: 1) PEMEX's six jack up orders totaling US$1.3bn; 2) Golar's FLNG projects following recent conclusion of FEED study; 3) Transocean's orders of up to 10 jack up rigs worth US$2bn to be awarded as early as end Oct and 4) Potential first drillship contract by end of 2013. YTD order wins stood at S$5.3bn, and looks set to exceed our full year expectation of S$6bn
Keppel remains our preferred pick in the large cap O&M space
Its solid execution track record, global yard network, and world-class proprietary designs are unrivalled
We see near term price catalyst stemming from strong order win momentum
Maintain BUY with unchanged SOTP-based target price S$12.90
UOB KAY HIAN says ...
GENTING HONG KONG | BUY | TP: US$0.49
Travellers has priced its IPO at P11.28, raising about US$473m, and valuing the company at around US$4.2b
Recall that Travellers is offering 1,573m new shares with an over-allotment option of 236m shares
The international tranche was 5x oversubscribed, with 70% of international subscribers from Asia, 20% from Europe and 10% from the US
The valuation is at around the mid-point of the indicative pricing range, and values GENHK's diluted 44% stake in the entity at about US$1.8b, significantly above our SOTP estimate of US$1.1b (50% stake pre-IPO), which had pegged the Philippine unit at about 9x EV/EBITDA
At its IPO pricing, GENHK's SOTP would rise to US$0.64/share, and a higher US$0.68/share if we value GENHK's stake in NCL Holdings at its market value
CREDIT SUISSE Securities says...
KEPPEL CORPORATION | OUTPERFORM | TP: S$12.50
Keppel reported 3Q13 net profit of S$403 mn, in line with our and consensus expectation
O&M operating margin continued to improve to 16.5% in 3Q13 from 14.2% in 2Q13, largely due to repeated delivery of jackups of similar design
Margin was also boosted from improved mix effect with lower rigbuilding revenue, as O&M revenue fell to S$1.54 bn in 3Q13 from S$1.82 bn in 2Q13
Infrastructure net profit fell to S$34 mn in 3Q13 from S$36 mn in 2Q13 due to continued challenges for its EPC projects in Qatar and Manchester
However, no further provisions were taken in 3Q13, and management expects both projects to be completed in 2014, in line with earlier guidance
Property net profit surged to S$139 mn in 3Q13 from S$66 mn in 2Q13, driven by the start of profit recognition for Corals at Keppel Bay (158 out of 366 units sold) and strong contribution from China
We maintain our OUTPERFORM rating and target price of S$12.50
Keppel is our preferred pick within the large cap offshore and marine sector |
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