OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 1.38

Stock Name: OKP
Company Name: OKP HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.48

Stock Name: GuocoLeisure
Company Name: GUOCOLEISURE LIMITED

Research House: OSK

Price Call: BUY

Target Price: 1.25

Market Compass

28 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

Global Flash: While You Were Sleeping Source: Marketwatch Quote for the day : If you just set out to be liked, you would be prepared to compromise on anything at any time, and you would achieve nothing. - MARGARET THATCHER Singapore: The Day Ahead SINGAPORE DAYBOOK: PRs pull back sharply on private home buys. Their share of February purchases plunges in the wake of the latest cooling measures. [SINGAPORE] The Jan 12 cooling measures appear to have spooked Singapore permanent residents (PRs) looking to buy private homes here. Their share of private home purchases dived in February after the measures introduced additional buyer's stamp duty (ABSD) on a PR's first residential property purchase here. The ABSD rate on subsequent purchases by PRs was also raised significantly. However, most analysts expect the PR buying share to recover, at least among PRs acquiring their first property. An analysis of URA Realis caveats data by Knight Frank shows that in February, PRs accounted for just 12.7 per cent of the 789 caveats lodged for the purchase of private homes excluding executive condominiums in that month. This marked a 5.7 percentage-point drop from the 18.4 per cent share held by PRs of the total 2,876 caveats in January. MARKET SCOOP Keppel to build four more jackup rigs for US$820m Second Chance hit by fair-value fall Nam Cheong gets US$72.1m in deals Office occupancy up 0.4% to 95.4% in Q1 '13: DTZ Singapore expects slower rise in visitors this year First Reit to buy two Indonesia hospitals RH Energy firms up RTO plan OCBC Securities says... NEPTUNE ORIENT LINES | BUY | TP: S$1.38 Despite the constant reminders of lingering economic uncertainty, the Shanghai Containerised Freight Index has stayed within a tight band (1,073-1,246) since the start of CY2013 Although container ship capacity is estimated to increase by at least 10% this year, several liners are quietly confident of a better CY2013 showing in terms of rates While we view the optimism over CY2013's prospects positively, there is still the likelihood of supply outstripping demand, especially on certain routes such as the transpacific trade lane We are encouraged by these developments and maintain our view that NOL will have a turnaround year in FY13 Nonetheless, we adjust our estimates downwards as we feel the transpacific route, which is NOL's main revenue contributor, to be especially susceptible to rate fluctuations OCBC says... OKP HOLDINGS | HOLD | TP: S$0.48 To recap, 4Q12/FY12 results were generally in line with our expectations While FY12 net income of S$104.5m (-5% YoY) was 5% lower than our estimate, PATMI of S$12.4m (-53% YoY) was 6% higher than what we expected OKP's extensive experience in public-sector construction and maintenance projects and its reputation for on-time delivery has secured it an order book of around S$377m (as of Feb), which stretches till 3Q 2015 However, we expect that, going forward, OKP gross profit margin will shrink below the 22% it registered for FY12, due to increasing manpower costs and growing competition Management indicated that it has found an established foreign partner with which it can jointly compete for work on the new MRT lines Applying a P/E multiple of 11x to FY13F EPS, we derive a FV of $0.48/share DMG OSK Securities says... GUOCO LEISURE | BUY | TP: S$1.25 GuocoLeisure (GLL), the listed leisure and hospitality arm of the Guoco Group, is an undervalued gem sitting on a portfolio of cash-generative, hard-to-replace assets GLL's crown jewel is its Guoman/Thistle hotel chain, the leading hotel operator in London An upcoming valuation exercise for GLL's hotels, currently underway, as a result of a privatization offer for its parent Guoco Group by major shareholder Quek Leng Chan, should shed more light on the market value of its hotels and the embedded surplus of the related real estate value GLL owns a 55% stake in the Weeks Royalty, which entitled it to a 2.5% royalty granted by BHP/EssoMobil on the gross value of all hydrocarbons produced and recovered in designated areas within the Bass Straits of Australia Trading at massive 53% discount to our SOTP valuation In our view, GLL offers a compelling asset play with imminent catalysts from restructuring within the group and greater transparency on its hotel assets

SG: MARKET PULSE: Oil & Gas Sector, Yoma, KepCorp, Nam Cheong (28 Mar 2013)

Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.33

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 12.68

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD

Research House: OCBC

Price Call: BUY

Target Price: 5.84

Stock Name: Yoma
Company Name: YOMA STRATEGIC HOLDINGS LTD

Research House: OCBC

Price Call: SELL

Target Price: 0.71

Stock Name: Nam Cheong
Company Name: NAM CHEONG LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.30

MARKET PULSE: Oil & Gas Sector, Yoma, KepCorp, Nam Cheong

28 Mar 2013

KEY IDEA Oil and Gas sector: Takeaways from IHS Petrodata's seminar We recently attended IHS Petrodata's seminar on the offshore oil and gas sector, and came away feeling positive on prospects of selected sub-segments of the industry. For the deepwater drilling market, day rates have recovered to 2008 levels, especially the ultra-deepwater segment. Rates for harsh-environment rigs have also been climbing. 2013 is also expected to see the development of more global oil and gas field projects, while sentiment on the OSV market has generally improved. In particular, average earned day rates in Asia Pacific are showing signs of an upturn, especially for AHTS vessels smaller than 6,000BHP in Indonesia and Malaysia. Maintain Overweight on the broader oil and gas sector, with Ezion Holdings [BUY, FV: S$2.33], Keppel Corporation [BUY, FV: S$12.68], Sembcorp Marine [BUY, FV: S$5.84], and Nam Cheong [BUY, FV: S$0.30] as our preferred picks. (Low Pei Han, Chia Jiunyang) MORE REPORTS Yoma Strategic Holdings: Moving into luxury tourism Yoma Strategic Holdings (Yoma) reported that it would take a 70% stake in Chindwin Holdings which would acquire several connected tourism assets. First, Chindwin would acquire 75% of a balloon tour company "Balloons over Bagan (BOB)" for US$10.7m. BOB is the only hot air balloon operator in Myanmar and has had a profitable track record since it began operations 13 years ago. We understand that this acquisition price translates to a forward PE multiple of 6 to 8 times. In addition, Chindwin would acquire a 75% stake in 21.2 acres of land in Bagan for US$3.75m. This acquisition is conditional on the present owner converting the existing land-rights to allow for the construction and operation of a hotel business. Overall we see these acquisitions to be positive and allows Yoma to capitalize on the burgeoning demand for luxury tourism in Myanmar. While we believe the company holds meaningful franchise value as a leading developer in Myanmar, most positives are likely priced in at current prices. Maintain SELL with a 12-month fair value estimate of S$0.71 (20% premium to RNAV). (Eli Lee) Keppel Corporation: Good demand from Mexico; secures four more jack-ups Keppel Corporation (KEP) announced that it has secured contracts to build four jackup rigs worth US$820m for Mexican drilling company, Grupo R. The rigs will be built to KEP's proprietary KFELS B Class design and are scheduled for delivery progressively from 2Q15 to 4Q15. Recall that KEP also secured contracts to build two similar rigs for PEMEX in Dec last year for US$420m. As mentioned in our earlier notes, the strong demand coming from Mexico is within our expectations, as PEMEX plans annual capital expenditures of ~US$30b till 2019 to stem the country's declining oil production. We see KEP as one of the beneficiaries of these developments. The group has secured new O&M orders worth about S$1.6b YTD, accounting for ~32% of our full year estimate. Maintain BUY with S$12.68 fair value estimate on KEP. (Low Pei Han) Nam Cheong Ltd: US$72m contract for six vessels Nam Cheong Ltd announced that it has sold six vessels worth a total of US$72m to two of its existing customers. Two 5,150 bhp Anchor Handling Towing Supply (AHTS) vessels are sold to Icon Offshore Berhad - one of Malaysia's largest OSV group, while four Emergency Response and Rescue Vessels (ERRVs) will be sold to a Singapore-based company for deployment to the North Sea. The vessels are scheduled for delivery between 2Q13 and 4Q14. We currently have a BUY rating and S$0.30 fair value estimate for the counter. (Chia Jiunyang)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks finished with limited losses on Wed, with the S&P 500 Index stalled just points from its record close, as worries over Europe's debt troubles abated. - Singapore expects overseas visitor arrivals to grow at a slower pace of between 2.8% and 7.6% this year, hurt by a tight domestic labour market. - Demand for office space remained healthy in 1Q13, with occupancy rates edging up 0.4ppt to 95.4% amid a sluggish economy, according to DTZ. - Second Chance announced that its net profit tumbled 42.4% YoY to S$3.02m due to a sharp drop in fair-value gain on investment properties. - RH Energy is making progress with its plans to mount a reverse takeover of Chinese property developer, Chiwayland Group (Singapore) Pte Ltd. - Japanese real estate firm Tosei Corporation, which has a primary listing on the Tokyo Stock Exchange, has found its way to the SGX through a secondary listing. - Mapletree Industrial Trust will develop a plot of land in one-north into a data centre for lease to Equinix Singapore. - Yanlord Land Group Ltd had its rating outlook revised to stable from negative by Standard & Poor's Rating Services.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Ying Li
Company Name: YING LI INTL REAL ESTATE LTD

Research House: UOB KayHian

Price Call: BUY

Target Price: 0.65

Market Compass

27 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

27 March 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 : Faced with what is right, to leave it undone shows a lack of courage. -CONFUCIUS Singapore: The Day Ahead SINGAPORE DAYBOOK: Regional real estate gets Morgan Stanley downgrade. Report gives low profitability and weak technicals as reasons for rating. MORGAN Stanley downgraded the regional real estate sector from "overweight" to "equal-weight" in its latest report. Citing the sector's low profitability and weak technicals, the report on Monday said: "Although still having cheap valuation, its current trailing return on equity is the second worst among all the 24 industry groups." "Real estate also ranks badly in terms of technical indicators like price momentum and fund flow... We observe relatively crowded fund flow going into the real estate industry recently... which is one of the drags on real estate to equal-weight from previous overweight," the report added. MARKET SCOOP Eastern Hldgs invests $10m in Asian securities Chuan Hup unit prematurely terminates JTC leases Olam opens new almond processing plant in Australia Retail unit size must average minimum 50 sq m from Wed S'pore industrial production plunges 16.6% yoy in Feb UBS asks S'pore court to seal cases of two fired traders CIMB Securities says... RAFFLES MEDICAL GROUP | OUTPERFORM | TP: S$3.81 RFMD had been hit by a series of setbacks in the last two weeks The group's re-application for a new proposed specialist centre in Orchard Road (Thong Sia Building, 30 Bideford Road) has not been successful Also, its bid for a new Hong Kong hospital lost out to IHH Healthcare two weeks back The group's existing efforts to upsize Raffles Hospital for another 100,000 sf of space should now take centrestage In terms of greenfield projects, RFMD will probably focus on its JV with China Merchant Bank to develop a Shenzhen hospital We understand that the investment may cost RFMD S$150m for its share of the JV The group can now fund its Chinese hospital by possibly selling its Orchard Road property, since the latter's development for healthcare use has been blocked We lift our target to 25x CY14 P/E (from 22x) to reflect its proven execution that should place it on par with its regional peers UOB KAY HIAN says... YING LI INTERNATIONAL | BUY | TP: S$0.65 The stock is currently trading at a 46% discount to its RNAV despite gaining 21.6% ytd New CEO could raise the profile of Ying Li. We are excited about the company's recent appointment of Mr Ko Kheng Hwa as Group CEO Sell-down unwarranted due to Ying Li's limited exposure to residential properties Ying Li has plans to transfer its retail malls into a trust vehicle for listing to monetise the assets and recycle the capital RNAV surprises will come from Wuyi Rd project and San Ya Wan phase 2 Ying Li will recognise the entire sales proceeds from International Plaza and book in the profits this year Key risks that could impede the stock from reaching our target price include: a) delays in the recognition of its properties, and b) regulatory measures to cool the property market Our targeted price is based on a 21.8% discount to our RNAV of S$0.83/share DMG OSK Securities says... CAPITACOMMERCIAL TRUST | NEUTRAL | TP: S$1.70 We visited CapitaGreen's showroom yesterday morning and were wowed by its: i) 40th-floor sky garden and restaurant, ii) innovative technology which directs cool air inwards, and iii) unique dual façade that cuts solar heat Set to be CCT's next growth driver, it offers c. 700,000 sq ft of Grade-A office space and is scheduled to receive its TOP by 4Q14 Unique design helps save on utility cost and strategic location a key selling point CapitaGreen is a joint development by CapitaLand, CCT and Mitsubishi Estate Asia In this project, CCT owns 40% equity interest as well as a call option to acquire the remaining 60% within three years upon receiving its temporary occupancy permit (TOP) We expect the building, involving a total development cost of SGD1.4bn, to generate a forecast yield of 5.1%-6.3% when occupancy stabilizes

SG: MARKET PULSE: NOL, OKP (27 Mar 2013)

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 1.38

Stock Name: OKP
Company Name: OKP HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.48

MARKET PULSE: NOL, OKP

27 Mar 2013

KEY IDEA Neptune Orient Lines: Turnaround still intact The Shanghai Containerised Freight Index has exhibited relative stability since the start of the year, and this should provide a good base for upcoming generate rate increases such as those enacted under the TSA for Apr. Although there is a possibility of a supply outpacing demand, several liners have expressed confidence in the resilience of rates this year and continue to push through GRIs beyond Apr. Nonetheless, the major liners acknowledge potential threats to profitability and have reiterated the need for the industry to strike a balance between competition and sustainability. Although some liners have taken heed - such as the G6 and CKYH alliances who have cancelled their planned Asia-Europe service launches this year - there remains some routes that are particularly susceptible to rate fluctuations, and we adjusted our estimates downwards for NOL accordingly. Regardless of this adjustment, our view on NOL's turnaround in FY13 remains intact and we maintain our BUY rating with a fair value of S$1.38. (Lim Siyi) MORE REPORTS OKP Holdings: Revenue visibility but margin compression To recap, 4Q12/FY12 results were generally in line with our expectations. While FY12 net income of S$104.5m (-5% YoY) was 5% lower than our estimate, PATMI of S$12.4m (-53% YoY) was 6% higher than what we expected. The lacklustre results were due to a weak economy, price competition and climbing labour costs. OKP declared a first and final dividend of 1.5 S cents/share, lower than the 2 S cents that we and the street had expected. FY12 dividend translates into a yield of 2.9%. We believe that management is conserving cash to increase its flexibility to tender for government projects. Following a change in analyst, we have adjusted our forecasts for OKP's FY13 and FY14 performance. Applying a P/E multiple of 11x to FY13F EPS, we derive a FV of S$0.48/share, slightly higher than our previous FV of S$0.46/share. We maintain our HOLDrating on OKP. (Sarah Ong)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks surged on Tuesday, lifting the Dow Jones to a record and the S&P 500 Index near its all-time high, following data that showed improvement in home prices and manufacturing. - Singapore's industrial production plunged 16.6% YoY in Feb, a drop almost twice as large as the 8.6% drop forecasters were expecting. - Eastern Holdings said that it would pump S$9.99m into Hong Kong-based Schroder Asian Asset Income Fund. - Chip Eng Seng Corporation has agreed to buy San Centre, an office building along Chin Swee Road, for S$113m under a collective purchase. - Chuan Hup Holdings Limited said that its subsidiary, Provest Transworld Limited, has prematurely terminated its JTC leases at Jalan Samulun. - Olam International opened an almond shelling and processing plant in Victoria, Australia. The factory will have a total capacity of 40k tonnes of almond kernels a year.

SG: MARKET PULSE: UE E&C, Global Palm (26 Mar 2013)

Stock Name: UE E&C
Company Name: UE E&C LTD.

Research House: OCBC

Price Call: BUY

Target Price: 0.82

Stock Name: Global Palm
Company Name: GLOBAL PALM RESOURCES HLGS LTD

Research House: OCBC

Price Call: HOLD

Target Price: 0.17

MARKET PULSE: UE E&C, Global Palm

26 Mar 2013

KEY IDEA UE E&C: Healthy pipeline of projects We met the management of UE E&C last week for an update. Despite the labour crunch in the construction industry and the cooling measures introduced by the government, management remains upbeat. The group has implemented productivity enhancement measures and adopted new technologies to facilitate work processes to help mitigate the tighter manpower constraints and rising costs. Meanwhile, the group has an estimated order-book of S$600-800m, anchored by four key residential developments: Austville EC, Watercolours EC, Prince Charles Crescent and the new Punggol EC. We now roll forward our estimate to FY13F and incorporate projections for the new Punggol EC project. This increases our SOTP fair value to S$0.82 (previously S$0.68). Upgrade to BUY. (Chia Jiunyang) MORE REPORTS Global Palm: HOLD with lower S$0.17 FV Global Palm Resources (GPR) continues to see a rise in its inventory of CPO (crude palm oil), this time more than doubling to 7.7k tonnes from 3.4k tonnes at end 3Q12 (also up 19% YoY). And with the continued high production of CPO (which is likely to continue into Mar as company expects FFB production to increase some 11% this year), GPR may see its stock pile inching even higher going into 2Q13. Meanwhile, new planting has been slow - GPR only added 331k ha last year - and plans to plan 300-400ha this year, citing tough negotiations with the local population. Recent FY12 results were slightly disappointing - GPR reported a net loss of IDR39.8b; but if we strip out the bio-asset fair value losses, core earnings would have come in at IDR51.5b, or 10% below our forecast. In view of the still muted outlook for CPO, we cut our FY14 forecast for revenue by 13% and core earnings by 12%; this also brings our fair value down from S$0.19 to S$0.17, still based on 10x FY13F EPS. Maintain HOLD. (Carey Wong)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks declined on Monday, erasing gains that briefly had the S&P 500 index less than one point from its record close, as Wall Street worried about Europe's troubles. - Share placements are gaining favour again among Singapore-listed companies as improving sentiment makes it easier to tap equity capital markets, observers say. - Singapore's CPI rose a faster than expected 4.9% in Feb from a year ago. Economists polled by Reuters were expecting an inflation rate of 4.1%, up from 3.6% in Jan. - About S$30m has been set aside by the Singapore government to run SME Centres over three years, from Apr 2013 to Mar 2016. - Lian Beng Group announced that it has won a S$220m contract to construct Bartley Ridge, a development comprising nine residential blocks along Mount Vernon Road. - Marine service provider Swissco Holdings Limited has diversified its business model to move higher up the value chain and into the oil rig sector.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Genting HK US$
Company Name: GENTING HONG KONG LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 0.55

Stock Name: SinoGrandnes
Company Name: SINO GRANDNESS FOOD IND GP LTD

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.23

Market Compass

26 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

26 March 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 : Don't necessarily avoid sharp edges. Occasionally they are necessary to leadership. -DONALD RUMSFELD Singapore: The Day Ahead SINGAPORE DAYBOOK: Sing$ may stay strong amid inflation worries. Highest inflation rate in Feb since last June with rise in MAS core inflation to 1.9%. MARKET SCOOP Lian Beng bags $220m Bartley Ridge deal Swissco diversifies into oil rig sector S'pore inflation rise to 4.9% in Feb DBS names new head of consumer banking/wealth mgmt Changi Airport traffic up 9.2% in February MIIF names new independent director Swissco in JV to clinch EPC contracts CIMB Securities says... GENTING HONG KONG | OUTPERFORM | TP: US$0.55 FY12 core EPS is 9% ahead of our expectation because of lower interest expense at Resorts World Manila (RWM) Underlying operations at its integrated resort were in line, though we had not expected the RWM's interest expense to halve from an interest-rate swap RWM remains a strong proxy for GDP growth in Metro Manila while GENHK's cruise operations have a unique footprint in the Asian leisure-travel market The re-rating of Norwegian Cruise Lines (NCL) since its IPO in Jan 13 is an additional catalyst We expect EBITDA margins to narrow to 28% in FY13 from 31% in FY12 on the back of competition from the new Solaire casino NCL is expected to spur much of GENHK's earnings in the next three years with the delivery of one new ship in Apr 13 and another in Jan 14 We expect 16% EBITDA growth this year on the deployment of its newly-refurbished Gemini to Shanghai UOB KAY HIAN says... SINO GRANDNESS | BUY | TP: S$1.23 Despite its strong share price outperformance, the stock is only trading at 3.9x FY13F earnings SGF is one of the largest exporters of canned asparagus, long beans and mushrooms with customers such as Carrefour and Walmart The group's steady earnings from canned fruits and vegetables is complemented by robust growth from its bottled juice division of approximately 40% p.a. over the next three years New production capacity to drive beverage business In our view, potential catalysts include better-than expected earnings as well as a potential listing of its subsidiary Garden Fresh, which could help unlock value Our target price assumes the listing of Garden Fresh to be successful in 2014 with a PE of 12x coupled with a holding company discount of 20% and a 4.0x 2014F PE valuation for its remaining business DBS VICKERS Securities says... OSIM INTERNATIONAL | BUY | TP: S$2.25 We initiate OSIM with a BUY recommendation, for 18% upside to S$2.25 TP Quarterly results from 1Q09 to 4Q12 have shown that earnings growth has been sustainable. OSIM is now a stronger entity and better positioned for further growth OSIM is a beneficiary of the rising middle class population in China, with 56% of revenues originating from North Asia OSIM currently has 435 stores in North Asia including 278 stores in China. We project 473 stores in North Asia by FY14F, or 20 store openings a year OSIM now creates demand by innovating new products to target new market segments We project FY12-FY14F earnings to grow at CAGR of 16%, driven by China and product innovation Our S$2.25 TP is based on 16x forward FY13F earnings, translating to a PEG of only 0.9x.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Armstrong
Company Name: ARMSTRONG INDUSTRIAL CORP LTD

Research House: CIMB

Price Call: SELL

Target Price: 0.29

Stock Name: Genting HK US$
Company Name: GENTING HONG KONG LIMITED

Research House: UOB KayHian

Price Call: SELL

Target Price: 0.35

Market Compass

25 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

25 March 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 : If a free society cannot help the many who are poor, it cannot save the few who are rich - JOHN F. KENNEDY Singapore: The Day Ahead SINGAPORE DAYBOOK: M&L goes on buying spree despite recent divestment. Acquisition of 3 properties brings its portfolio value to $1.4 billion. [SINGAPORE] M&L Hospitality Trust (M&L) is not in a divesting mood, having in fact acquired three properties since it suspended its initial public offering (IPO) last year, its new chief executive has said. Neil Maxwell, who took over the reins at the real estate investment trust (Reit) last month, told The Business Times that of the three, one is the 165-room Hilton Auckland in New Zealand; the other two, with a combined 350 rooms, are the Holiday Inn and Staybridge Suites in Stratford, London. Financial details were not disclosed. Mr Maxwell was speaking to BT after the trust had disposed of the Ibis Novena hotel - what he described as one of M&L's smaller assets - to Keppel Land for $150 million. MARKET SCOOP Yoma sets up new Myanmar-based JV Singapore's bond market takes a breather Banks are feeling the pinch of regulatory action OCBC shifts strategy to focus on the customer Cyprus in last ditch EU talks to save economy CIMB Securities says... ARMSTRONG INDUSTRIAL | UNDERPERFORM | TP: S$0.29 We believe Armstrong's post-FY12 results share price outperformance has priced in all the positives from its automotive segment and cost saving measures In addition, our channel checks reveal an unexciting outlook for the HDD industry in 1H13 Data storage sales from Armstrong are expected to bottom out in 2Q13; hence a better 2H13 is expected In the long term, our data checks suggest flat growth for HDD all the way to 2017 Jan-Feb's inventory data for Chinese automakers was positive, and we expect Armstrong's automotive segment to benefit accordingly Our target price stays at S$0.29, pegged at 8x CY14 P/E, its 5-year average UOB KAY HIAN says... GENTING HONG KONG | SELL | TP: US$0.35 Genting Hong Kong chalked up a net profit of US$183.3m from continuing operations in 2012 (+4.6% yoy on restated 2011 results) Better-than-expected results were seen at both Star Asia and Resorts World Manila (RWM), while we had already factored in the impressive results of NCL after its result announcement in Feb 13 Although commendably closing on a high note, GENHK's earnings have been inexplicably erratic this year, in part, due to RWM's exceptionally low margins in 1H12 and a strong recovery in 2H12 we continue to expect RWM's earnings to be impacted by the opening of Manila's second integrated resort and casino, Solaire Manila, last Saturday We continue to brace for a modest fall in RWM's gross gaming revenue this year, particularly in the 2H, and further slippage in 2014 Our caution on the stock has been premised on concerns over a) intensifying competition and a longish consolidation at the integrated resort and casino space for RWM, b) lofty valuations of NCL since its listing DBS VICKERS Securities says... KREUZ HOLDINGS | BUY | TP: S$0.58 Kreuz's earnings delivery has consistently exceeded our expectations as they have continued to secure additional work at higher margins from customers, based on their execution track record For FY12, Kreuz registered net profit of US$39.7m (up 49% y-o-y), and gross margin increased to 32.9% (FY11: 30.7%) as the group reduced reliance on third party vessel chartering, with a new vessel acquisition earlier in FY12 In the longer term, it is building a state-of-the-art multi-purpose support vessel capable of operating in deeper waters The group won US$155m worth of orders in FY12, and current order book stands at US$205m, of which about 90% will be recognised in FY13 With better-than-expected margins and robust order win outlook, we revise up our FY13/14F earnings by about 19-20% Current valuation is undemanding, given its earnings delivery track record to date, healthy growth prospects and strong FY13F ROE of close to 25% Maintain BUY with a higher TP of S$0.58, pegged to 6x FY13 earnings

SG: MARKET PULSE: Mapletree Logistics Trust, Raffles Medical Group (25 Mar 2013)

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.25

Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD

Research House: OCBC

Price Call: HOLD

Target Price: 3.01

MARKET PULSE: Mapletree Logistics Trust, Raffles Medical Group

25 Mar 2013

KEY IDEA Mapletree Logistics Trust: Second disposal attempt Summary: Mapletree Logistics Trust (MLT) announced last Friday that it has entered into an option to purchase agreement for the divestment of 30 Woodlands Loop in Singapore at a sale price of S$15.5m. This represents a significant premium to its purchase price of S$10.3m in 2007 and its valuation price of S$11.0m in Mar 2012. The divestment is expected to be completed by May, and is expected to generate a net disposal gain of ~S$5.0m, which will be distributed to unitholders (subject to clarification on tax treatment). We re-jig our forecasts to take into account the divestment and the potential distribution of the net disposal gains in FY14. However, our fair value remains unchanged at S$1.25. We maintain our BUY rating on MLT. (Kevin Tan) MORE REPORTS Raffles Medical Group: What's next after another setback? Summary: Raffles Medical Group (RMG) announced last Friday that its resubmission for the change of use of its commercial podium at 30 Bideford Road to a medical centre had been unsuccessful. This is the second setback faced by RMG in as many weeks as it had only recently lost out on a land tender for the development of a private hospital in Hong Kong. Management could now possibly seek to sell the property, retain it for rental purposes, or keep it for partial use and partial rental. Meanwhile, we expect RMG to continue to grow its Singapore business and to step up its negotiation efforts with regards to its recent non-binding Letter of Intent for a proposed integrated international hospital development in Shenzhen, China. Maintain HOLD on RMG, with an unchanged fair value estimate of S$3.01. (Wong Teck Ching Andy)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks rose Friday in light trading, but logged a slight loss for the week, as investors bet that Cyprus will eventually be able to reach a bailout deal with its euro-zone partners. - Global IPO activity saw a 42% YoY drop in deal volume in 1Q13, but the action is expected to pick up in the coming months, according to Ernst & Young's latest Global IPO Update. - Asian companies are listing a record amount of bonds on SGX as the city-state's top-AAA rating and transparent rules help cut borrowing costs and attract global investors. - Wholesale electricity prices in Singapore extended their decline in 1Q13, latest data by market operator Energy Market Company showed, continuing a trend that started in 4Q12. - Integrated engineering solutions provider IEV Holdings Limited said it planned to enter the renewable energy business through biomass production in Vietnam.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: OSIM
Company Name: OSIM INTERNATIONAL LTD

Research House: OCBC

Price Call: BUY

Target Price: 2.19

Market Compass

22 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

22 March 2013~ Good Morning Singapore! Central Execution Team - Trading For A Living 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 : I have just three things to teach: simplicity, patience, compassion. These three are your greatest treasures. - LAO TZU Singapore: The Day Ahead SINGAPORE DAYBOOK: EU gives Cyprus bailout ultimatum, risks euro exit NICOSIA - The European Union gave Cyprus till Monday to raise the billions of euros it needs to secure an international bailout or face a collapse of its financial system that could push it out of the euro currency zone. In a sign it was at least preparing for the worst, the Cypriot government sought powers on Thursday to impose capital controls to stem a flood of funds leaving the island if there is no deal before banks reopen following this week's shutdown. In stark warnings earlier in the day, the European Central Bank said it would cut off liquidity to Cypriot banks and a senior EU official made clear to Reuters that the bloc was ready to see the bankrupt island banished from the euro in the belief it could then contain damage to the wider European economy. MARKET SCOOP SembMarine's unit gets exclusive licence for MFPs Rickmers issue gets 39.92% undertaking Singapore Feb inflation seen higher on Lunar New Year: Poll Bouchard exercises option for barge unit from ST Engg JTC awards two industrial plots inTuas South Armarda unit ties up distributorship deal with China Telecom Satellite OCBC Securities says... OSIM INTERNATIONAL | BUY | TP: S$2.19 Jitters over the economic growth of China, which is OSIM International's (OSIM) largest market (~25% of revenue), recently resurfaced again, following disappointing industrial production and retail sales figures we believe that our revenue forecast for FY13 has already taken into account the uncertainties over China's economic growth, as it is 2.8% below Bloomberg's consensus forecast We believe the efforts put in place by management to enhance its product appeal through innovation and productivity gains to boost its margins, which also showcases the resilience of OSIM's business The uAngel Sofa-Tranzformer, one of OSIM's new flagship products for 2013, was first launched in Malaysia and Hong Kong at the start of the year We view this as an important development for OSIM as uAngel allows management to capture a new target group of young working female adults and thus provides a platform for OSIM to diversify its customer base OSIM's next product pipeline would be a new high-end massage chair (selling price likely to be comparable to uDivine), and we expect this to be launched in 2Q or 3Q 2013 and endorsed by international artiste Andy Lau Maintain BUY with an unchanged fair value estimate of S$2.19, still pegged to 16.4x FY13F EPS DBS VICKERS Securities says... SOUND GLOBAL LIMITED | BUY | TP: S$0.81 SGL was sold down after its weak 4Q12 results, CFO departure and the ensuing management shuffle It is the cheapest water stock in the region, trading at >40% discount to peers' average of 15x PE Visibility backed by record EPC backlog and growing base of recurring O&M revenue FY13/14F earnings adjusted by -5%/+12% respectively Surging interest expense and delayed execution are key risks; privatization/M&A could be a catalyst TP lowered to S$0.81, but there is still 62% potential upside; valuation stands at >40% disc to regional peers, Maintain BUY DBS VICKERS Securities says... EZION HOLDINGS | BUY | TP: S$2.42 Ezion has secured a charter contract worth US$48.2m over three years to provide a service rig for an international oil company in the Arabian Gulf region This is Ezion's fourth charter contract for 2013, bringing YTD contract wins to US$290m The economics of the project look good, with lower upfront investment costs and operating costs, and we estimate this contract to generate high ROE of close to 58% with 52% EBIT margins, and yield US$7m net profit annually No impact to our FY13F numbers, but our FY14F net profit estimate is raised by 3.5% after including contribution from this latest contract win Maintain BUY for its high earnings visibility and undemanding valuations of 13x/ 8x FY13/14 PE against a solid FY12-14F estimated EPS CAGR of 67%

SG: MARKET PULSE: Ezion Holdings, KSH Holdings (22 Mar 2013)

Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.35

Stock Name: KSH Hldg
Company Name: KSH HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.61

MARKET PULSE: Ezion Holdings, KSH Holdings

22 Mar 2013

KEY IDEA Ezion Holdings: Secures service rig contract with good ROE Ezion Holdings (Ezion) announced that it has secured a charter contract worth about US$48.2m over a three year period to provide a service rig for an international oil and gas major for work in the Arabian Gulf. The unit will be deployed before end 2013 after refurbishment and upgrading in a Middle Eastern yard. We estimate a good ROE of slightly more than 55% for this project, vs a forecasted ROE of 22% for Ezion in FY13. Ezion's stock price has appreciated by about 18% YTD vs the STI's 3% rise over the same period. However, we still see an upside potential of more than 15% over a one-year time frame. We tweak our earnings estimates, and based on 12x blended FY13/14F core earnings, our fair value estimate rises from S$2.33 to S$2.35. Maintain BUY. (Low Pei Han) MORE REPORTS KSH Holdings: Placement exercise to raise S$13.9m KSH recently conducted a placement for 30.9m new shares and 4.1m existing treasury shares at 40.8 S-cents per share. This was at a 5.2% discount to the weighted average traded price of 43.0 S-cents on 11 Mar 2013 and raised S$13.9m of capital for the group. Shortly after the placement, KSH deployed S$1.9m to increase its stake in its Beijing condominium project (Liang Jing Ming Ju, Phase 4) from 26.24% to 45.00%. Pending further visibility on capital deployment, we are overall neutral on this placement but note it would increase the size of the public float and possibly improve the counter's trading liquidity, which has been low historically. Maintain BUY on KSH. Our fair value estimate dips mildly to S$0.61 from S$0.62, due to a mild dilution effect, but our forecast for buoyant earnings growth over FY13-14 remains unchanged. (Eli Lee)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks slumped on Thurs, suffering their biggest drop in nearly a month, pressured by weak euro-zone economic data, escalating worries over the banking crisis in Cyprus and disappointment with Oracle's earnings. - China's flash PMI released by HSBC yesterday rebounded in Mar, dispelling fears that recovery in the world's second largest economy was running out of steam. - Singapore's CPI likely climbed 4.1% YoY in Feb, compared with a rise of 3.6% in Jan, according to a Reuters poll, due to higher food prices during the Lunar New Year holidays. - S-REITs are seeking to improve their financial flexibility by increasingly opting for unsecured funding rather than secured funding, according to Moody's Investors Service. - Four build-to-order (BTO) projects offering 3,898 new flats were launched on Thursday in three non-mature towns: Bukit Batok, Punggol, and Sengkang. - ST Engineering's US shipyard, VT Halter Marine, has landed an exercised option for a barge unit from Bouchard Transportation "in the region of US$100m". - Saizen REIT has acquired a residential property in Japan for S$9.9m. - Rickmers Maritime's S$101.7m rights issue has received a collective 39.9% undertaking with the latest pledge of support from Capital Research and Management Company.

SG: MARKET PULSE: Cache, TEE, Midas (20 Mar 2013)

Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.33

Stock Name: Tee Intl
Company Name: TEE INTERNATIONAL LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.30

Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.595

MARKET PULSE: Cache, TEE, Midas

20 Mar 2013

KEY IDEA Cache Logistics Trust: Raising equity to fund acquisition Cache Logistics Trust (CACHE) has exercised the call option to acquire the newly completed ramp-up logistics warehouse known as Precise Two. In a separate announcement, CACHE also launched a private placement to raise gross proceeds of S$86.8m, of which ~66.0% of the gross proceeds is expected to be used to wholly fund the proposed acquisition of Precise Two. We have earlier anticipated CACHE to fund the acquisition fully by debt, since it has recently received its maiden credit rating from Moody's (which allows it to exceed its previous debt ceiling of 35%). With this new development, we now adjust our estimates to factor in the placement and enlarged unit base. We also forecast a reduction in leverage as we believe CACHE may pare down its debts using the remaining proceeds to cushion a near-term dilution in DPU. Our fair value is revised to S$1.33 from S$1.34 previously. Maintain BUY. (Kevin Tan) MORE REPORTS TEE International: Potential new real estate projects TEE International recently announced the establishment of two wholly owned indirect subsidiaries, TEE Industrial Pte Ltd (yesterday) and TEE Hospitality Pte Ltd (12 Mar), under its real estate unit, TEE Land Private Limited. The principal activity of both subsidiaries will be in real estate development. Though no other details were given, the choice of names suggests that the group is preparing to expand its property business further, into the industrial and hospitality services segments. Meanwhile, TEE's plans to spin off its real estate business appear to be on track for a listing on SGX by May and we expect more updates in the weeks ahead. Its share price should remain supported in the near term by expectations of a special dividend if the plan succeeds, but we remain cautious on TEE until we see stronger contributions from its real estate business. We maintain our fair value estimate of S$0.30 and HOLDrating for TEE. (Conrad Tan) Midas Holdings: Wins first international contract of the year Midas Holdings (Midas) announced last evening that it has secured a EUR22.7m (~CNY182.8m) contract from Ural Locomotives LLC, a joint-venture company between Siemens AG and Russia's Sinara Group. We note that Midas' relationship with Siemens stretches a long way back, as it was appointed as a preferred global long-term supplier of aluminium alloy products for Siemens in Oct 2005.This is Midas' first international contract of 2013 and also helps to boost its total order wins YTD to ~CNY292.4m, following the five metro contract wins announced on 12 Mar. This latest contract entails the supply of aluminium alloy extrusion profiles for use in the manufacture of 100 electric train sets (or 500 electric train cars) for commuter passenger service in the Russian railway sector. Delivery is expected to take place progressively from 2013 to 2019. We had previously highlighted that management would be deepening its efforts to secure international railway contracts as a means of buffering the current standstill from the high-speed railway side in China. Maintain BUY and S$0.595 fair value estimate on Midas. (Wong Teck Ching Andy)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stock indexes finished mixed on Tuesday, with the S&P 500 extending its longest losing streak since late December. The S&P fell 0.2% while the Nasdaq eased 0.3%. - Rickmers Maritime plans to raise S$98.5m in a non-underwritten renounceable rights issue and use the proceeds to repay bank loans. - Noble Group says it sees an unprecedented amount of opportunities and is confident of another bull market for commodities in a few years. - China New Town drew mixed reactions after a unit of China Development Bank said it might buy 40% of the company. Its shares were up 7% in Singapore but down 11% in Hong Kong.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Sheng Siong
Company Name: SHENG SIONG GROUP LTD

Research House: Maybank Kim Eng

Price Call: BUY

Target Price: 0.70

Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.45

Stock Name: Yoma
Company Name: YOMA STRATEGIC HOLDINGS LTD

Research House: DBS Vickers

Price Call: HOLD

Target Price: 0.80

Market Compass

20 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

20 March 2013~ Good Morning Singapore! Central Execution Team - Trading For A Living 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 : The art of leadership is saying no, not saying yes. It is very easy to say yes. -TONY BLAIR Singapore: The Day Ahead SINGAPORE DAYBOOK: Eurozone still ready to help Cyprus after vote BRUSSELS - Eurozone finance ministers said Tuesday they still stood ready to help Cyprus after the island's parliament voted down a debt bailout accord which included an unprecedented bank deposit levy. "I confirm that the Eurogroup stands ready to assist Cyprus in its reform efforts and reiterate the position of the Eurogroup" given Monday when it offered easier bank levy terms so as to reduce the impact on smaller savers, Dutch Finance Minister Jeroen Dijsselbloem said in a brief statement. Monday's statement suggested that Cyprus spare any account under 100,000 euros - the same amount as EU deposit guarantee norms introduced at the height of the debt crisis in an effort to reassure savers unnerved by collapsing banks. MARKET SCOOP Midas bags US$29.4m Russian contract Ascott opens first Citadines in Indonesia, M'sia Rickmers' S$98.5m rights to repay loans Cache's S$84.2m issue oversubscribed MAYBANK KIM ENG Securities says... SHENG SIONG GROUP | BUY | TP: S$0.70 Sheng Siong will launch its e-commerce platform in 1H13. Despite being a latecomer to online retailing, we believe this move is a step in the right direction as shopping on the Internet will inevitably erode traditional grocery shopping in the future While Sheng Siong may be a late comer, it has had ample opportunity to study the online grocery shopping model to (1) avoid spending excessive investment and (2) get the products offering right Sheng Siong has set aside approximately SGD20m of the net proceeds from its IPO for the development and expansion of grocery retailing in Singapore and overseas The initial stage will not require much investment, as it will leverage on its warehouse capabilities, then systematically picked by workers in stores We expect the online channel will take at least a couple of quarters to gain momentum and will be rolled out progressively by district We have a Street-high TP of SGD0.70 on our favourite supermarket due to its healthy FY13 growth and 4+% yield on the back of a 90% fixed payout for the next two years UOB KAY HIAN says... CACHE LOGISTICS TRUST | BUY | TP: S$1.45 Cache Logistics Trust (Cache) announced the private placement of 70m new units (or 9.9% of total units) at an issue price of S$1.24 to raise gross proceeds of S$86.8m Proceeds will be used to fund the earlier announced (Feb 13) acquisition of Precise Two, a newly completed three-storey ramp-up logistics warehouse, for S$57.3m, (66% of gross proceeds) Advanced distribution of 2.12 S cents per unit for existing unitholders has been announced by Cache for the distributable income for the period 1 Jan 13 to 26 Mar 13 With an NPI yield of 8.7%, the acquisition of Precise Two would be yield accretive (1% accretion to DPU if acquired and held through 2012) even when fully-funded by equity (current DPU yields are 6.5%) We believe CWT Logistics Hub 3 remains the most likely potential acquisition candidate from Cache's sponsor pipeline, with a potential estimated acquisition value of S$170m Maintain BUY with a lower target price of S$1.45 (from S$1.52) factoring in the DPU dilution. We use DDM (required rate of return: 6.5%, terminal growth: 2.0%) to value Cache DBS VICKERS Securities says... YOMA STRATEGIC HOLDINGS | HOLD | TP: S$0.80 Yoma announced three investments totalling US$14.55m to expand its hospitality business from Yangon to Bagan to capitalise the tourism boom in Myanmar All acquisitions would be made via Chindwin Holdings, a 70/30 JV company set up between Yoma and FMI Acquisition of a 75% stake in SLTG, the only hot air balloon operator in Bagan that operates "Ballons over Bagan" (BoB) in Bagan, which has been in operation for the last 14 years. Based on 9M2012 figures, this business would contribute 23.06% to Yoma's profits upon completion of the deal Acquisition of a 75% interest in 21.16 acres of land in Bagan, conditional upon the owner's ability to secure a permit to construct and operate a hotel business Acquisition of a 75% stake in luxury tour operator Eastern Safaris Pte Ltd (ESPL) for US$0.1m. This is a company that offers exclusive and luxurious tours in Myanmar and Bhutan Stock price performance also depends on the market's tolerance/appetite for potential fund raising exercises, thereby diluting existing shareholder interests No change to our estimates pending more details and confirmation of acquisitions. Maintain HOLD, TP: S$0.80

UOB KayHian upgrades Wilmar to Buy from Hold

Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED

Research House: UOB KayHian

Price Call: BUY

Target Price: 3.80

UOB KayHian raises Wilmar (F34.SG) to Buy from Hold.

“We foresee 2013 pre-tax margin to be more stable and have better visibility. As Asia’s largest agri-commodity company, Wilmar can have better bargaining power in a high-inventory market and enjoy lower raw material prices.”

It expects Wilmar to benefit from the release of oilseeds and vegetable-oil reserves in China, starting in early March; “as the largest oilseed crusher and consumer pack cooking oil producer, Wilmar will bid for these, which are usually released from national reserves at a below-market price.”

It raises its target to $3.80 from $3.70 after applying a higher 2013 P/E of 15x vs the previous 13x for the oilseed & grain division on the oilseed-reserves release and strong sales volume growth from non-cooking oil consumer packs. The stock is up 0.9% at $3.39.


 

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: SingTel
Company Name: SINGTEL

Research House: UOB KayHian

Price Call: SELL

Target Price: 3.41

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD

Research House: UOB KayHian

Price Call: HOLD

Target Price: 4.76

Market Compass

19 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

19 March 2013~ Good Morning Singapore! Central Execution Team - Trading For A Living 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 : The art of leadership is saying no, not saying yes. It is very easy to say yes. -TONY BLAIR Singapore: The Day Ahead SINGAPORE DAYBOOK:Feb exports dive 30.6%; S'pore lags trading rivals.Pharmaceuticals and oil rigs register big fall, even as weakness in electronics persists. [SINGAPORE] Singapore's exports plunged far more than expected in February from a year earlier, dragged down by a sharp drop in pharmaceuticals and oil rigs as well as continued weakness in electronics. In a performance more reminiscent of recessions, non-oil domestic exports (NODX) fell 30.6 per cent last month from a year ago - on a par with the 31 per cent decline when the tech bubble burst in 2001 and the 35 per cent slide during the global financial crisis. Latest data released yesterday by International Enterprise Singapore surprised private-sector economists who were forecasting a 16 per cent decline. Singapore scraped through a technical recession in the last quarter, and the NODX bounced back from a 16.3 per cent drop in December to record a modest 0.4 per cent gain in January. MARKET SCOOP Sakae shareholders vote out Andy Ong A-Reit acquires The Galen for S$126m Yongnam to diversify into infrastructural development Lam Soon Industrial Building up for en-bloc sale again S&P rates UOB's new notes 'BBB' Sing dollar falls on weak exports data; seen to drop further UOB KAY HIAN Securities says... S'PORE TELECOMMUNICATIONS | SELL | TP: S$3.41 Key Takeaways From SingTel Investor Day Unfortunately, SingTel continues to confront slower growth in Singapore and Australia The presentation was organised around the new organisation structure with three business units, namely Group Consumer, Group Enterprise and Group Digital Life In particular, margins for Singapore continue to be under pressure. Continued investment in start-up companies contributing to start-up losses almost immediately but has long gestation period SingTel has maintained its guidance of low single digit revenue growth for Singapore and mid single-digit revenue decline for Australia No turnaround at Bharti as the telco industry is overcrowded and there are no initiatives to encourage consolidation in India Our valuation is S$3.41 based on sum-of-the-parts (SOTP) methodology. The slight increase in target price is primarily due to higher valuation for Telkomsel DMG OSK Securities says... SEMBCORP MARINE | NUETRAL | TP: S$4.76 Sembcorp Marine (SMM)'s PPL Shipyard has secured two new jackup rig orders from Mexico-based Oro Negro for USD417m We estimate that the new contracts lifted SMM's FY13 order win to SGD1.68bn, 42% of our FY13 new order estimate of SGD4bn SMM has won three jackup orders in 2013 from Perisai (one unit) and Oro Negro (two unit) and we expect more jackup orders in 2013 as the fleet renewal cycle is still intact We believe share price will react positively to the news. However, we maintain Neutral on the stock as we see limited upside to our TP of SGD4.76, which values the stock at 17.2x FY13F P/E DBS VICKERS Securities says... OVERSEAS UNION ENTERPRISES | NOT RATED | TP: S$3.16 Pure play into core real estate sectors in Singapore With a Singapore oriented portfolio (97% of RNAV), Overseas Union Enterprise (OUE) offers a unique exposure to Singapore' prime assets across various real estate segments - office, hotel, retail and residential Looking ahead, we expect the group's portfolio to continue undergoing transformation via: (i) addition of retail space at One Raffles Place retail podium and 6 Shenton Way, (ii) growing its hospitality portfolio through construction of an additional 240 rooms in an extension wing at Crown Plaza OUE is re-looking at its plan to list a hotel REIT, which we believe is likely to include its flagship Meritus Mandarin Hotel and Crowne Plaza Changi Airport Hotel in Singapore and potentially include the converted towers at Twin Peaks and DBS Tower This listing could potentially reap a valuation surplus of up to c. S$1bn in value for the group Fair Value of $3.16, pegged at a 25% discount to RNAV