Tiger Airways price target raised 50% to 27 cents by CIMB

Stock Name: Tigerair
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: CIMB

Price Call: SELL

Target Price: 0.27

SINGAPORE (May 7): CIMB has raised its price target for Tiger Airways to 27 cents from 18 cents as it now expects the carrier to return to the black this year on lower fuel prices and rising yields.

Its "reduce" call on the stock has not changed, as the airline will find it much harder to improve profitability substantially, according to CIMB analyst Raymond Yap.

"It would be much harder to improve profits materially from this point onwards since the Asean aviation markets remain very oversupplied, putting aside the drop in fuel prices," he wrote in a note.

Tiger Air kept at 'reduce' with target price of 18 cents by CIMB

Stock Name: Tigerair
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: CIMB

Price Call: SELL

Target Price: 0.18

SINGAPORE (Jan 27): CIMB Research is maintaining its "reduce" call on Tiger Airways with a higher target price of 18 cents as the budget carrier continues "to face huge longer-term challenges".

In a Jan 26 report, analysts Raymond Yap and Gan Jian Bo say Tigerair Singapore's relatively stagnant forecast capacity to the Asean region of around 33,000 seats by July 2015 stands in marked contrast against other carriers' expansion.

Between July 2014 and July 2015, the seat capacity for Singapore to Asean is expected to rise 8.8%, against Tigerair Singapore's reduction of 1.2%.

Tiger downgraded to 'underperform' with lower 23 cents target price

Stock Name: Tigerair
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: StanChart

Price Call: SELL

Target Price: 0.23

SINGAPORE (Oct 20): Standard Chartered's equity research has downgraded Tiger Airways Holdings to "underperform" from "in line".

It has also cut its target price to 23 cents from 41 cents.

As Tiger Air cut its bases in the Philippines, Indonesia and Australia, it has become a LCC based only in small and competitive Singapore, sharing the market with SIA, Silkair and Scoot, says Stanchart in an Oct 17 report.

This means a turnaround of its business remains tough.

Tiger Air posted an operating loss of $25.3 million in 2QFY15.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: UOB KayHian

Price Call: SELL

Target Price: 0.43

Stock Name: Yoma
Company Name: YOMA STRATEGIC HOLDINGS LTD

Research House: DBS Vickers

Price Call: BUY

Target Price: 1.02

Market Compass

04 December 2013~ Good Morning Singapore!

Singapore Idea Snippets:

04 Dec 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 : An advertising agency is 85 percent confusion and 15 percent commission. - FRED ALLEN Singapore: The Day Ahead SINGAPORE DAYBOOK : Property fuels surge in S'poreans' net wealth. MAS review shows household debt rising, but savings piling up faster; cautions that risks remain. [SINGAPORE] Singapore households have been given a clean bill of health as far as their debt is concerned. Despite warnings of an increasing exposure to mortgages, net wealth has grown robustly over the past decade and stands at about four times GDP, according to the Monetary Authority of Singapore Financial Stability Review 2013. While household debt continues to increase, savings are piling up faster and massive cash deposits outweigh total liabilities, the review showed yesterday. Measures to cool the residential property market are having a significant impact, too. "However caution is in order as uncertainties and risks remain," MAS warned. (Source: The Business Times) MARKET SCOOP Nov PMI dips to 50.8, points to slower growth SGX derivatives and clearing activities grow Yuan overtakes euro in trade finance S'pore household net wealth robust: MAS S'pore shadow banking small: MAS S'pore-based banks lending more to China, India: MAS S'pore jumps 50 spots up on World Giving Index (Source: The Business Times) UOB KAY HIAN says ... TIGERAIR | SELL | TP: S$0.43 We are not confident of Tigerair's prospects in 2HFY14 due to weak loads out of Singapore We, thus, lower our fair value to S$0.43, valuing the stock at 0.9x FY14F P/B from 1.0x P/B October pax load factor (LF) fell to a 21-month low as the 21% capacity growth vastly outstripped the 8% traffic growth The 74.4% load was substantially lower than the 88.0% breakeven load achieved in 2QFY14 The weak October loads do not bode well for 4Q13, which is a peak quarter for Tigerair As such, we have lowered our FY14 traffic growth by 5ppt to 20% and revise down our pax LF by 2ppt to 79% 2QFY14 LF was at its lowest in eight quarters, declining 5.6ppt yoy The weak October loads suggest little leeway in raising prices and yields are thus unlikely to improve in 2HFY14 At the 2QFY14 analysts briefing, Tigerair highlighted the possibility of implementing fuel surcharges on select routes after a successful implementation on Indonesian routes However, October's weak loads suggest that Tigerair does not have much pricing power and the odds of the airline implementing surcharges appear low One of the key concerns we have on Tigerair is the uncertainty regarding the financial stability of its associates and the extent and duration of continued financial backing For 1HFY14, combined associate losses and impairments amounted to S$99m Despite the losses, Tigerair invested an additional S$71m in associates during 2QFY14 We assume just S$34m in associate losses and impairment for 2HFY14 If November's operating statistics do not show an improvement, we believe the stock will face further downward pressure Political unrest in Thailand, which is a key sector for Tigerair would very likely lead to lower loads Under such a scenario, we believe that the odds of Tigerair underperforming for the next six months are high We lower our FY14 earnings forecast by S$20.0m and now expect Tigerair to report a net loss of S$19m compared to S$1m net profit previously The downward revision is mainly due to a 5ppt reduction in pax traffic growth assumptions We lower our target price by 17% to S$0.43 after lowering the fair value to 0.9x FY14F P/B from 1.0x It is worth noting that parent airline SIA's own airline operations are implicitly valued at a lower 0.7x P/B after adjusting for its stake in SIA Engineering DBS Securities says ... YOMA STRATEGIC HOLDINGS | BUY | TP: S$1.02 Yoma announced that its telecom JV with Digicel and FMI named Digicel Asian Holdings, has signed an agreement with Ooredoo Myanmar, one of the winners of Myanmar's telco operating licence, to develop, construct and lease telecom towers to the latter This joint venture will be amongst the first telecoms tower companies to begin construction in Myanmar and will accept multi-tenancy agreements This development is in line with Yoma's aspiration to be a conglomerate and we believe it will contribute positively to the company in the long haul although the accretion may be insignificant Yoma has not released any quantifiable details at this stage But, Yoma would surely need funding to invest in this JV although we believe their stake would not be substantial Based on Myanmar government's timeline to expand mobile penetration from less than 5% to 80% by 2015-2016, we believe this would be a fast-paced development and should start no later than 2014 That said, we do not expect immediate profits in its first year of operations considering start up expenses We expect further update on this JV over the next few weeks and will update accordingly Maintain Buy on Yoma with TP of S$1.02 OCBC Securities says... YOMA STRATEGIC HOLDINGS | HOLD | TP: S$0.84 Yoma reported that a consortium, Digicel Asian Holdings, comprising Digicel Group, First Myanmar Investment Co., Ltd and Yoma Strategic Holdings Ltd, has signed an agreement with Ooredoo Myanmar to develop, construct and lease telecommunications towers in Myanmar This will facilitate Ooredoo's commitment to rapidly achieve coverage across the country after winning a coveted telecommunication license earlier this year We understand that Digicel Asian Holdings' company in Myanmar, Myanmar Tower Company, will construct multi-tenancy towers in Myanmar and aim to work with multiple telecommunications operating companies We will speak further with management regarding this development and, in the meantime, maintain a HOLD rating with our fair value estimate of S$0.84 under review

SG: MARKET PULSE: Suntec REIT, Tiger, Triyards, ART (25 Oct 2013)

Stock Name: SuntecReit
Company Name: SUNTEC REAL ESTATE INV TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.85

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.55

Stock Name: Triyards
Company Name: TRIYARDS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.88

Stock Name: AscottREIT
Company Name: ASCOTT RESIDENCE TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.37

MARKET PULSE: Suntec REIT, Tiger, Triyards, ART

25 Oct 2013

KEY IDEA Suntec REIT: Poised for strong harvest Suntec REIT posted 3Q13 DPU of 2.289 S cents, up 1.8% QoQ (-2.6% YoY). This brings the 9M13 DPU to 6.766 S cents (-5.6%), meeting 73.4% of both consensus and our FY13F DPU. As at 30 Sep, both the office and retail portfolio occupancy rates were maintained at high levels of 99.8% and 98.3%, respectively. We understand that ~160,000 sqft of leases was signed in 3Q, leaving only a balance of 1.7% of office NLA due for renewal in 2013. As such, its portfolio performance is expected to stay relatively steady, despite potential weakness in 4Q13/1Q14 as Suntec REIT prepares for Phase 3 AEI. Management also updated that pre-commitment at Phase 2 retail space has improved from 70.1% in 2Q to 83.7%. While there are a few anchor tenants (which may command lower rents), Suntec REIT reiterated that ROI of 10.1% remains on track. In 4Q, we can reasonably expect revaluation gains of the portfolio assets, which may improve Suntec REIT's gearing and P/B ratios (currently at 37.2% and 0.84x respectively). Maintain BUYwith higher fair value of S$1.85 (S$1.80 previously) as we roll our valuation to FY14. (Kevin Tan) MORE REPORTS Tiger Airways: Growing pains to sustain We were disappointed by Tigerair's (TR) 2QFY14 results, which showed a larger operating loss (S$12.8m vs. S$11.5m in 2Q13) due to higher operating costs. Performance by its associate airlines during the quarter was also weak with overall losses at almost S$24m (S$26.6m in 1Q14; S$3.8m in 2Q13), and that lead to an erosion of gains from the disposal of 60% interest in Tigerair Australia. Although there were some seasonality factors at play, the lack of demand traction and competitive fare pressures force us to temper our earlier optimism over TR's performance for FY14/15. Lowering our FY14/15 net profit projections considerably to account for the growing pains of its associate airlines and the likelihood of depressed passenger yields for Tigerair Singapore in the near-term, we downgrade TR to HOLD with a reduced fair value estimate of S$0.55 (S$0.79 previously). (Lim Siyi) Triyards Holdings: Proposes maiden dividend Triyards Holdings (Triyards) reported a 6.5% YoY drop in revenue to US$76.7m and a 32.2% decrease in net profit to US$10.3m in 4QFY13, bringing FY13 revenue and net profit to US$275.1m and US$31.4m, respectively. Though results were good, the market is likely to focus on new orders. It has been about ten months since the group secured its last SEU order, and the lack of new contracts so far has been a key factor that has weighed on the share price, in our view. The group's net order book of US$217m will provide work for FY14, but more work has to be secured to keep its yards busy beyond that. Rolling forward our valuation to blended FY14/15F earnings with a lower P/E of 7x (prev 8x) due to the lack of orders so far, our fair value estimate dips from S$1.07 to S$0.88. Maintain BUY. Meanwhile, the group has proposed a final dividend of S$0.02/share, translating to a 3.1% dividend yield. (Low Pei Han) Ascott Residence Trust: 3Q13 results ahead ART has announced 3Q13 results that were ahead of ours and the street's expectations. Revenue climbed 11% YoY to S$86.1m, chiefly due to additional revenue of S$14.1m from the properties acquired in second half last year and on 28 June 2013. The increase was partially offset by the decrease in revenue of S$4.7m from the divestment of Somerset Grand Cairnhill in September 2012 and lower contribution of S$0.7m from the existing properties, mainly properties in Philippines and Japan. The group achieved a REVPAU of S$133 in 3Q 2013, a decrease of 10% as compared to 3Q 2012. The decrease in REVPAU was mainly due to divestment of Somerset Grand Cairnhill Singapore and weaker performance from Philippines and Japan. Gross profit climbed 10% YoY to S$44.8m. Unitholder's distribution increased 17% YoY to S$30.0m. DPU rose 6% YoY to 2.37 S cents, bringing 9M13 DPU to 7.07 S cents, versus full year estimates by us and the street of 8.9 S cents and 9.0 S cents respectively. We maintain our BUYrating on ART but place out FV of S$1.37 under review. (Sarah Ong)

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

NEWS HEADLINES - US stocks climbed on Thu, as equities picked up steam along with large-cap companies on signs of an improving global economy. - The total debt servicing ratio framework appears to have made a bigger dent on purchases of private homes by those with HDB addresses than by those with private addresses, according to consulting group DTZ. - Mapletree Commercial Trust's DPU rose to 1.801 S cents in 2QFY14, up 16.5% from a year earlier, thanks to positive contributions from its properties. - Far East Hospitality Management will launch three Singapore hotels over the next three months. - Stamford Tyres has appointed a dealer for Sumo Firenza tyres in the United Arab Emirates to expand its presence in the Middle East.

OSPL- Good Morning S'pore - Central Dealing Desk

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: UOB KayHian

Price Call: SELL

Target Price: 0.55

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED

Research House: Nomura

Price Call: BUY

Target Price: 3.94

Market Compass

17 September 2013~ Good Morning Singapore!

Singapore Idea Snippets:

17 Sept 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 : When you are a mother, you are never really alone in your thoughts. A mother always has to think twice, once for herself and once for her child. - SOPHIA LOREN Singapore: The Day Ahead SINGAPORE DAYBOOK :Govt hopes to roll out MediShield Life in 2015. Public consultation exercise in Q4 this year: Health Minister THE government hopes to roll out the new MediShield Life insurance plan, which will cover all Singaporeans and for life, in 2015. Health Minister Gan Kim Yong said in Parliament yesterday that the planned public consultation exercise will be done in the fourth quarter of this year; during the consultation, more details on the revamped scheme will be announced, such as the likely impact on payouts if all pre-existing conditions and all citizens are covered for life. Mr Gan gave the House this update in response to queries from Non-Constituency MP Gerald Giam, who asked for more information on the projected annual increase in MediShield payouts. MediShield Life was first announced by Prime Minister Lee Hsien Loong at his National Day Rally speech last month. It is part of the government's review of healthcare financing, aimed at ensuring that healthcare remains affordable for Singaporeans. (Source: The Business Times) MARKET SCOOP UE to buy HP Building for over S$400m Nam See makes partial offer for HMI Logistics plans precast plant inIskandar A-Sonic inks deal to lease more aircraft Aug home sales up from July, down from year ago (Source: The Business Times) MAYBANK KIM ENG Securities says... HANKORE ENVIROMENT | NOT RATED | Hankore is mainly involved in municipal wastewater treatments in China with 11 water plants and total contracted capacity of 1.57tons/day when fully completed We recently met with Hankore's management and visited one of its water plants in Suzhou We are impressed by the restructuring and progress that occurred in the past few years and think there are some improvements in company's fundamental The stock seems gain more interest after introducing a strategic investor in July 2013 We highlight this stock to investors as we think it might be a good turnaround story After a series of developments including debt restructuring (2008), appointment of new management (2011) and liquidation of some non-performing assets (2011), Hankore successfully recovered from a net loss of RMB407m in FY11 to a profit of RMB103m in FY12 Hankore is upgrading or expanding 5 out of its total 11 water projects in China, which gives growth potential to the company The turnaround might be sustainable given the better earnings visibility and cleaner balance sheet We identified three main growth drivers for the company (1) in FY6/14, there could be a big increase in the construction revenue as the existing 5 upgrading and expansion contracts delivered to the government; (2) FY6/15 onwards, the ongoing expansion works will increase the water processing capacity by around 33% from current level; and (3) water tariff hike due to the improved water quality after the upgrades are completed In our view, there are three main risks to almost any water treatment companies including Hankore: (1) interest rate risk, (2) liquidity risk and (3) credit risk Lack of a strong parent company could also be one of the disadvantages for Hankore compared with other SOE backed water companies such as Beijing Enterprises Water Group (371: HK) and SIIC Environment (SIIC: SP) Hankore provides a very attractive exposure to China water industry It is currently trading at 8.2x 12m trailing PER compared with 22.6x average for SGX-listed peers UOB KAY HIAN says ... TIGERAIR | SELL | TP: S$0.55 Tigerair rose 5% post release of August operating statistics We believe that the market viewed the absence of Tigerair Australia's operating stats as a sign that the former wholly-owned subsidiary will no longer be a drag on earnings 60% of the unit was divested to Virgin Australia on 8 July, which will lead to partial losses Still, a weak Australian dollar and higher fuel prices during the period will lead to associate losses Tigerair for the first time provided monthly load factors for Tigerair Mandala (74%) and Tigerair Philippines (70%), which were well below Singapore's (78.5%) The relatively weak loads suggest that both associates will continue to be in the red Pax traffic rose 23% while capacity grew by a higher 30% in August This resulted in a 4.7ppt decline in loads, the lowest load factor since Jan 12 The number of pax carried grew 19%, which shows that Tigerair was carrying passengers on longer distances Ideally, ticket prices should rise to compensate for the higher sector lengths However, we remain doubtful about Tigerair's ability to raise fares as the previous quarter showed a lack of pricing power In 1Q13, fares stayed constant and yields fell 5% in the wake of a S$6 increase in passenger service charge (PSC) by Changi Airport The lack of pricing power coupled with higher fuel costs in July and August (2.6% higher than in 1QFY14) would also impact margins Fuel accounted for 40% of total operating costs in 1QFY14 In 1QFY14, yields fell 5% and Tigerair Singapore reported an operating profit of S$5.9m During the period, Tigerair Singapore achieved a passenger load factor (PLF) of 83.9% Loads for 2M were a whopping 4.7ppt lower Thus, unless fares rise substantially, 2QFY14 earnings will likely disappoint At current price levels, Tigerair is trading at 1.5x 2013F P/B compared with AirAsia's 1.3x P/B and the industry average of 1x P/B As AirAsia has better pricing power, it successfully implemented fuel surcharges to defray fuel costs Thus it would be our preferred pick in the LCC space, especially if it has increased its hedging on its US dollar-denominated debt Tigerair has rebranded itself as a more customer friendly airline and has aligned itself with National Trades Union Congress (NTUC) While this will increase brand awareness with the potential for higher market share, we would like to see that supplemented by fuel surcharges Several other LCCs have successfully adopted such a strategy and raised revenue Until, we see that, we believe that there is limited scope for Tigerair to achieve operating efficiency from volume alone Maintain SELL with unchanged target price of S$0.55, valuing the stock at 1.4x FY14F book value, excluding perpetual securities NOMURA Securities says... CAPITALAND | BUY | TP: S$3.94 We visited the township development La Botanica in Xi'an on 6 September CAPL has an effective stake of 15.2% in the project via CapitaLand Township (the previous Surbana) Of the 7,300 units launched to date, 88% have already been sold and 1,100 units of which were sold this year (and this is on top of the 1,691 homes sold in China that CAPL reported in 1H13) The average price has also appreciated from CNY4,600psm for Phase 1 launched in 2008 to CNY6,900psm for the latest Phase 5 launched in May this year While CAPL's stake in the project is minor, the relatively healthy pace of take-up at La Botanica suggests the owner-occupied demand for mass market housing in China remains robust and this bodes well for the value home projects that CAPL plans to launch in FY14F (one in Guangzhou and two in Shanghai), in our view Besides home sales in China, we believe a near-term catalyst could be the launch and sales achieved at CAPL's second project in Bishan (694 units) Our estimates suggest the average unit size to be relatively small at just over 800 sq ft, which implies an average purchase price of just over SGD1mn/unit Therefore we expect sales to move faster than next-door Sky Habitat, which has larger units We maintain our Buy rating and TP of SGD3.94 (NAV SGD4.66/share) though our top pick in the sector remains CMA (CMA SP, Buy)

SG: MARKET PULSE: Raffles Med, Tiger, SIAE, ART, Osim (23 Jul 2013)

Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD

Research House: OCBC

Price Call: BUY

Target Price: 3.42

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.79

Stock Name: SIA Engg
Company Name: SIA ENGINEERING CO LTD

Research House: OCBC

Price Call: HOLD

Target Price: 5.00

Stock Name: AscottREIT
Company Name: ASCOTT RESIDENCE TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.31

Stock Name: OSIM
Company Name: OSIM INTERNATIONAL LTD

Research House: OCBC

Price Call: BUY

Target Price: 2.21

MARKET PULSE: Raffles Med, Tiger, SIAE, ART, Osim

23 Jul 2013

KEY IDEA Raffles Medical Group: Solid double-digit growth Summary: Raffles Medical Group's (RMG) 2Q13 revenue of S$86.8m (+12.9% YoY; +7.1% QoQ) and PATMI of S$14.4m (+15.9% YoY; +6.8% QoQ) were within our expectations. Topline growth was driven by both its Hospital Services and Healthcare Services divisions, which increased 16.8% and 6.5% YoY, respectively. As expected, an interim dividend of 1 S cent/share was declared, similar to 1H12. Management is currently evaluating the bids for its commercial property and will make a decision on the sale in the coming weeks. Looking ahead, we expect further operating leverage improvement by RMG as management will continue to grow its revenue, underpinned by the expansion of its specialist services. We retain our projections, and reiterate our BUY rating and S$3.42 fair value estimate on RMG, pegged to 29x blended FY13/14F EPS. (Wong Teck Ching Andy) MORE REPORTS Tiger Airways: Look beyond the bottom-line Summary: Tigerair (TR) reported weaker-than-expected 1Q14 results following continued losses from its associate airlines, which masked overall improvements in performance from Tigerair SG (TRS) and Tigerair AU (TRA). The group's operating loss had narrowed to S$6.2m from S$11.8m over the same period a year ago but 1Q14 net loss came in at S$32.8m (versus -S$13.7m in 1Q13). Nonetheless, we derive some positives from the figures as losses from its associates had actually narrowed during the quarter, and we believe the outlook for TR in FY14 remains encouraging. Adjusting our figures to account for TRA's deconsolidation and aircraft deliveries for TRS, we maintain our BUY rating on TR with an unchanged fair value estimate of S$0.79. (Lim Siyi) SIA Engineering: Uninspiring 1Q14 but within expectations Summary: SIA Engineering Company's (SIAEC) 1Q14 results were generally in line with ours and the street's expectations. Basic EPS of 6.22 S cents formed 25% of ours and 24% of the street's FY14 estimates. Revenue decreased 3.7% YoY to S$289.4m, chiefly due to lower material and fleet management revenue. Operating profit fell 19.5% YoY to S$27.7m. Share of profits from associated and JV companies increased 14.0% YoY to S$45.6m, representing a contribution of 58.0% of the group's pre-tax profits. PATMI was down 1.6% YoY to S$69.0m. We maintain our fair value of S$5.00 (EPS forecast of 25.0 S cents for FY14 and 20.0X peg) and HOLD rating on SIAEC. (Sarah Ong) Ascott Residence Trust: 2Q13 in line with street Summary: Ascott Residence Trust (ART) reported 2Q13 results that were better than our expectations but in line with the street's. Revenue fell 2% YoY to S$77.4m and gross profit dropped 4% YoY to S$41.0m. However, unitholders' distribution grew 14% YoY to S$30.9m (including a reversal of over-provision of prior years' tax expense of S$2.7m), which lead DPU rising 3% YoY to 2.45 S cents. Excluding the placement units issued in 1Q13, DPU for 2Q13 would be 2.70 cents. We place our FV of S$1.31 and Hold rating on ART UNDER REVIEW pending a briefing with management. (Sarah Ong)

OSIM International: Increases stake in TWG Tea by 10% to 45% Summary: OSIM announced that it has increased its stake in associated company TWG Tea Company Pte Ltd (TWG Tea) from 35% to 45%. The astonishing element is that the 10% stake was acquired for a total purchase consideration of only S$2. This was because the founding members of TWG Tea had failed to meet the agreed performance target for the year ended 31 Mar 2013; although we believe that the TWG Tea business is doing well. As a recap, OSIM bought a 35% stake in TWG Tea for ~S$31.36m in Apr 2011. We estimate that this additional 10% stake will have an incremental 0.6% and 0.9% impact to our FY13 and FY14 PATMI forecasts for OSIM, respectively. We maintain our BUY rating and S$2.21 fair value estimate on OSIM for now as the group is scheduled to release its 2Q13 results next Tue, 30 Jul. (Wong Teck Ching Andy) For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US equities climbed slightly on Monday, with the S&P 500 reaching its 23rd record close this year, as financial and healthcare counters led the market up. - Courts Asia has entered into an MOU with Sinar Mas Land, the property development part of Sinar Mas Group, to build its first two "Big-Box" outlets in Indonesia. - MFG Integration Technology expects to report a loss for 1H13 due to the weak market for semiconductor equipment worldwide. - According to the Wall Street Journal, Lotte Department Store, South Korea's largest department-store operator by revenue, is seeking to list some of its retail mall assets in the form of a trust in Singapore and could raise at least US$1b. - Aspial Corporation has issued S$50m 5% notes due 2016.

SG: MARKET PULSE: Starhill, Tiger, Midas (12 Jun 2013)

Stock Name: Starhill Gbl
Company Name: STARHILL GLOBAL REIT

Research House: OCBC

Price Call: BUY

Target Price: 1.00

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.79

Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.54

MARKET PULSE: Starhill, Tiger, Midas

12 Jun 2013

KEY IDEA Starhill Global REIT: Another positive development Summary: Starhill Global REIT (SGREIT) announced that the rent review for the Toshin master lease has been concluded, and that a renewal rent at 6.7% higher than the prevailing rate has been secured. This is consistent with our 29 Apr report that SGREIT may again benefit from rental upside following the completion of the review process. We now factor in the increased rents in our forecasts but lower our fair value marginally to S$1.00 on higher risk-free rate (S$1.05 previously). However, we continue to like SGREIT for its growth potential, strong financial position and compelling valuations. For FY13, SGREIT looks set to gain from continued strength from its Singapore portfolio, incremental income from its newly-acquired Plaza Arcade and a 7.2% rental escalation from its Malaysia master leases in Jun. We maintain BUY on SGREIT. Key risks include weaker JPY/AUD and negative impact from a potential CPU conversion. (Kevin Tan) MORE REPORTS Tiger Airways: Time for a tiger Summary: In light of its more than 6% price correction, we are reiterating our BUY rating on Tiger Airways (TGR) with an unchanged fair value estimate of S$0.79 as we believe prospects remain positive for the counter. Its recent May operating statistics revealed its eighth consecutive month of passenger traffic growth for TGR SG, and passenger load factors during the period have also remained fairly resilient, which demonstrates its effective capacity management. In addition, we are hopeful for a better showing from its associate airlines given the propensity for travel in the coming months for Indonesia and the Philippines. On a broader scale, the industry dynamics, namely growth in the Asia-Pacific region, remains conducive for budget carriers as consumers become more affluent and appetite for air travel increases. (Lim Siyi)

Midas Holdings: JV NPRT secures CNY1.26b metro contract Summary: Midas Holdings (Midas) announced that its 32.5%-owned JV Nanjing SR Puzhen Rail Transport (NPRT) has clinched a CNY1.26b metro contract. This is for the supply of 33 train sets (or 198 train cars) for the Shenzhen Metro Line 3 project. However, delivery is scheduled only from 2015 to 2016. Given that this is the third contract secured by NPRT in two weeks, we believe this highlights the growing momentum of China's metro industry. In our view, this may also lead to future contract wins for Midas given that it is a supplier of aluminium extrusion profiles for NPRT. Maintain BUY on Midas, with an unchanged fair value estimate of S$0.54, pegged at 1.1x FY13F P/B. (Wong Teck Ching Andy) For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks fell, sending the S&P 500 Index lower for a second day, after Bank of Japan Governor Haruhiko Kuroda said he sees no need to expand monetary stimulus immediately. - DBS would still want to buy Temasek's entire stake in Danamon, Business Times reports, citing an interview with Peter Seah, chairman of DBS Group Holdings Ltd. - Aussino expects that it will not be able to exit the SGX watch list by the 3 Sep deadline and intends to apply to SGX for extension of time to apply for removal from watch list. - T T J Holdings wins new contracts for structural steelworks and civil defence shelter doors in Singapore and Malaysia, bringing its order book to S$164m as at 11 Jun. - Tsit Wing's Chairman and CEO Peter Wong seeks to privatize the company and has acquired an aggregate of 20m ordinary shares at a price of $0.3075 each, valuing it at S$65.5m - Del Monte Pacific says shareholder Nutriasia Pacific to enter a placement agreement for the sale of 150m shares of the Company which will be listed and traded on the PSE, marking first dual listing between the SGX and the PSE.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.79

Stock Name: EuYanSang
Company Name: EU YAN SANG INTERNATIONAL LTD

Research House: OSK

Price Call: BUY

Target Price: 0.88

Market Compass

21 May 2013~ Good Morning Singapore!

Singapore Idea Snippets:

21 May 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 : When written in Chinese, the word 'crisis' is composed of two characters. One represents danger and the other represents opportunity. - JOHN F. KENNEDY Singapore: The Day Ahead SINGAPORE DAYBOOK:Law alone won't stop discrimination: Chuan-Jin. Moral suasion, measured response needed in review of employing foreigners [SINGAPORE] Anti-discrimination laws for workplaces remain a possibility, but will not be that "silver bullet that solves all problems". Acting Manpower Minister Tan Chuan-Jin yesterday reiterated that the government believes the current tripartite approach of tackling workplace discrimination along gender, age or nationality lines via "moral suasion" to be more effective and sustainable. Speaking to 500 business leaders and human resource practitioners at a conference on fair employment practices, Mr Tan said other countries' experiences with anti-discrimination laws show that legislation alone is not enough to alter mindsets. "Companies can fulfil the letter of the law, but not the spirit of it ... So legislation may cure and in fact may mask some of these symptoms, but it does not guarantee that we deal with the underlying problem," he said. (Source: The Business Times) MARKET SCOOP WE Holdings jumps on Myanmar business plan XMH jumps to 5-yr high on Koh Boon Hwee effect, speculation of major acquisition ahead SIA, SilkAir, Shenzhen Airlines in codeshare deal Ascott wins its first serviced residence deal in Riyadh Optus aims 4G coverage to reach 70% Australia's metro population by mid-2014 K-Green Trust gets new CFO Singapore's domestic wholesale trade falls 7.3% yoy in Q1 (Source: The Business Times) OCBC Securities says... TIGER AIRWAYS HOLDINGS | BUY | TP: S$0.79 Tiger Airways (TGR) reported a decent set of 4Q13 results with revenue increasing 49.4% YoY to S$240.6m - partly due to the lower base from TGR AU last year - and core operating profit was positive for the second straight quarter at S$12.7m (4Q12: -US$17.2m) Although losses from its associates caused an overall net loss of S$15.4m for the quarter, it was still an improvement over the same period a year ago (-S$16.4m) For FY13, TGR saw an overall core operating profit of S$7.3m (FY12: -S$83.4m) and its net loss narrowed to S$45.4m from S$104.3m a year ago In the coming quarters, TGR SG will increase its capacity by 25% following the addition of five new aircraft While this increase is substantial, we are comforted by its performance in FY13, and believe that growth in passenger traffic will be able to absorb this increase As a recap, TGR SG registered a 20.5% YoY increase in passenger traffic for 4Q13, which outpaced capacity growth of 14.3% YoY TGR's two associate airlines, Mandala and SEAir, experienced widening losses in 4Q13, and such losses could extend into FY14 Although it was not unexpected given their infancy stages - and we have already made concessions for a pickup only in FY15 - the magnitude of the losses requires us to be a little more conservative in our projections Despite the risk of a drag from its associates, we continue to like TGR for its growth prospects and anticipate a much improved core net profit performance for FY14 Maintain BUY rating on TGR with an unchanged fair value estimate of S$0.79 OSK DMG Securities says ... EU YAN SANG | BUY | TP:S$0.88 Eu Yan Sang said it has formed a 50:50 JV with Sichuan Neautus to set up a traditional Chinese medicine (TCM) decoction pieces (processed herbs) plant in China We view the move positively as it will give the Group better control of its supply chain This will ensure there is a stable supply of herbs and ingredients for EY's products The JV will invest CNY40m (SGD8m) capex in Phase One, which will involve the setting up of a Good Manufacturing Practice (GMP) standard TCM decoction pieces (processed herbs) plant in Chengdu Hi-Tech Zone in Sichuan province As construction of the plant is expected to take about a year, EY will not see any earnings contribution until 2015 Sichuan Neautus Traditional Chinese Medicine Co, founded in 2001, is the first GMP-certified pharmaceutical producer of herbal slices in China The company's chairman, Mr Jiang Yun, is also chairman of the Herbal Slice Chapter of the China Association of Traditional Chinese Medicine The Group recently reported a robust 54% surge in 3Q13 earnings to SGD8.4m, boosted by a faster-than-expected turnaround at its Australian operation This prompted us to upgrade the stock from Neutral to Buy As the share price has risen close to SGD0.80 TP, we are now raising our valuation multiple from 18x to 19x FY14F, to derive a new SGD0.88 TP DBS VICKERS Securities says... CSE GLOBAL | BUY | TP:S$0.97 1Q13 net profit of S$12.7m (flat y-o-y) was in line but new order win of S$95m (up 11% y-o-y) was below our S$110m estimate Free cash flow of S$13.6m resulted in its net gearing declining to 12% from 19% in 4Q12 Revenue declined 11% y-o-y due to lower onshore activity in North America and lower zero-margin revenue in the Middle East However its gross margin improved to 31.5% versus 27.9% in 1Q12 due to higher-margin offshore projects and less zero-margin revenue We trim FY13F/14F order win forecast to S$500m/ S$550m from S$550m/S$580m earlier leading to a 5%/4% cut in FY13F/14F earnings CSE has achieved 25% and 19% of our revised full-year earnings and order win forecasts There was no big order win in 1Q13, however, we expect CSE to secure two to three big order wins in 2H13F (S$100m in aggregate) on top of its smaller order wins of S$400m in FY13F These wins could come from LNG projects in Australia and Africa in 2H13F CSE has room to borrow S$40m to fund any potential acquisition which could accelerate earnings growth Our revised TP of S$0.97 is based on 9.6x FY13F PE The stock is a bargain versus STI at 16x FY13F PE (STI's hist. avg 13.9x) With 45% of the business recurring in nature, CSE has a resilient business model supporting a 40% payout ratio

SG: MARKET PULSE: Tiger, CWT (20 May 2013)

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.79

Stock Name: CWT
Company Name: CWT LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.08

MARKET PULSE: Tiger, CWT

20 May 2013

KEY IDEA Tiger Airways: Roaring success in FY14? Tiger Airways (TGR) reported a decent set of 4Q13 results to close out the year with a second consecutive quarter of core operating profit. This helped overturn 1H13 losses and TGR recorded a FY13 overall core operating profit of S$7.3m (FY12: -S$83.4m) and its net loss narrowed to S$45.4m from S$104.3m a year ago. In the coming quarters, we expect TGR SG to continue exhibiting strong growth prospects and carry the group forward. Passenger demand has remained healthy for the group and the planned capacity increases for FY14 will allow it to capitalise on this demand. Despite the risk of a drag from its associates, we remain hopeful for a positive core net profit performance for FY14. Maintain BUYrating on TGR with an unchanged fair value estimate of S$0.79. (Lim Siyi) MORE REPORTS CWT Ltd: Growing the trading wing CWT Ltd's 1Q13 revenue jumped 39% YoY to S$1.5b, while net profit was flat at S$27m. 1Q results were in-line with ours and the street's expectations. The surge in 1Q revenue was mainly driven by its newly established trading business (Commodity SCM) which resulted in higher volume, and the inception of a new product line. At the same time, the group incurred higher administrative expenses relating to the costs of establishing new operations. The group's logistics operations were largely business-as-usual. Looking ahead, we expect operating leverage to kick in for the Commodity SCM business and the group to expand its logistics capacity with the developments of three large warehouses in Singapore. Maintain BUY with unchanged FV of S$2.08. (Chia Jiunyang)

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

NEWS HEADLINES -Mapletree Investments is looking to ramp up its overseas business and potentially list a REIT made up of office assets in Japan in two years. - Sembcorp Industries has entered into a joint venture with Oman's Takamul Investment Company to develop a centralised utilities complex, which costs around S$1b, to service the Duqm SEZ. -Indian firms flock to Singapore debt market, with Tata Motors being the latest to do so, raising S$350m through 5-year bonds. - Mercator Lines (Singapore) has posted a US$77.7m net loss for FY13 ended 31 Mar, versus a net profit of US$7.8m the previous year. - OCBC has announced that the Shanghai Financial Services Office has on 25 April 2013 approved the establishment of a Renminbi fund. -Yahoo!'s board has approved a deal to purchase the popular blogging platform Tumblr for US$1.1b (S$1.35b) in cash.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: MapletreeInd
Company Name: MAPLETREE INDUSTRIAL TRUST

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.66

Stock Name: Nam Cheong
Company Name: NAM CHEONG LIMITED

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.30

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.79

Market Compass

25 April 2013~ Good Morning Singapore!

Singapore Idea Snippets:

25 April 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 :When you are courting a nice girl an hour seems like a second. When you sit on a red-hot cinder a second seems like an hour. That's relativity. - ALBERT EINSTEIN Singapore: The Day Ahead SINGAPORE DAYBOOK:Fans will have to pay more, says SingTel [SINGAPORE] SingTel's top executive, Allen Lew, said that the Media Development Authority's (MDA) decision yesterday will drive Barclays Premier League (BPL) prices up, and has vowed to fight its finding to the very end. If SingTel shares the content with StarHub as per MDA's instruction, the subscription cost of content will be "substantially higher", an irate Mr Lew warned last night. Currently, mio TV customers pay $34.90 for its sports package, the bulk of which is BPL content. Apart from existing mio TV customers with BPL subscriptions that extend beyond the start of BPL season this August, all football viewers - mio TV's and StarHub's - will have to pay more because of this decision. "If (viewers) are on StarHub's platform . . . I cannot upsell them other content that I have. (So), for them, I have to charge a higher price for BPL," he said. MARKET SCOOP Olam plan may slam the brakes on growth to appease investors MDA: SingTel has to share BPL content QAF Q1 profit up 14% on lighter tax load Hotung Group Q1 net profit falls 13% Cache Logistics Trust posts DPU of 2.234 cents in Q1, up 7.1% AVJennings to raise up to A$41.2m in 2- for-5 entitlement offer Singapore Airlines lifts stake in Virgin Australia to 19.9% UOB KAY HIAN says... MAPLETREE INDUSTRIAL TRUST | BUY | TP: S$1.66 Mapletree Industrial Trust (MIT) reported a 4QFY13 distributable income of S$38.9m (+8.7% yoy, +3.4% qoq) and a DPU of 2.37cents (+6.8% yoy, +2.2% qoq) The DPU of 9.24cents for FY2013 is above expectations, accounting for 102.7% of our full year estimate of 9.0 cents 4QFY13 revenues increased to S$72.1m (+8.8%yoy, +4.2% qoq) while Net Property Income increased to S$49.6m (+7.8% yoy, +1.0%qoq), driven by positive rental reversions at flatted factories (+30%), business parks (+13%) and stack-up/ramp-up buildings (+36%), partially offset by a 12% qoq rise in property expenses 6.3% rise in portfolio valuations, which are up S$183m to S$2,880m The increase is attributable to a portfolio revaluation gain of S$134.9m, arising from higher NPI and occupancies, and capitalized development costs of S$48.4m Aggregate leverage has fallen 2.3ppt qoq to 34.8% due to higher portfolio valuations AEIs and BTS to drive income growth over next 2 years With the positive results surprise, we are likely to review our DPU estimates We currently have a BUY on MIT with a target price of S$1.66 per unit based on DDM (required rate of return: 6.8%, terminal growth: 2.0%) DBS VICKERS Securities says... NAM CHEONG | BUY | TP: S$0.30 Nam Cheong announced another round of vessel sales worth US$59m for two accommodation work barges to be delivered in 1H-2014 The pricing is within expectations and the vessels were sold to repeat customer Perdana Petroleum, one of the major offshore services providers in Malaysia Nam Cheong has won orders for 6 vessels across its build-to-stock and build-to-order business models and is on track to achieve FY13/14 sales targets Orderbook now stands at about RM1.4bn We expect Nam Cheong to secure order wins for another 8-10 vessels in FY13, which will cover FY13 completions and half of FY14 completions Maintain BUY with TP of S$0.30, expect the stock to firm up after holding at $0.245-0.25 over the past 2-3 weeks OCBC Securities says... TIGER AIRWAYS | BUY | TP: S$0.79 Tiger Airways (TGR) announced yesterday that it received approval from the Australian ACCC to sell 60% of TGR AU to Virgin Australia Following this approval, TGR will record a one-time gain on disposal of S$119.8m and shore up its balance sheet More importantly, investors can now look to TGR SG as the main growth driver for the Group Although operating losses have narrowed, TGR AU remains loss-making and this trend could continue until the new entity incorporates complimentary services with Virgin Australia Similarly, TGR's other associate - South East Asian Airlines (SEAir) - is still in its infancy stage and operating losses could still hit TGR's books in the nearterm Despite the risk of a drag on performance by its associates, we continue to stand by our assertion that TGR's turnaround is ongoing Maintain BUY rating on TGR with a lower fair value estimate of S$0.79 (S$0.86 previously) after taking into consideration the recent rights and PCCS issuance

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: MapletreeCom
Company Name: MAPLETREE COMMERCIAL TRUST

Research House: CIMB

Price Call: HOLD

Target Price: 1.47

Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 3.90

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: UOB KayHian

Price Call: SELL

Target Price: 0.63

Market Compass

24 April 2013~ Good Morning Singapore!

Singapore Idea Snippets:

24 April 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 : Everyone here has the sense that right now is one of those moments when we are influencing the future. - STEVE JOBS Singapore: The Day Ahead SINGAPORE DAYBOOK:China knocked back by weak PMI. New export orders fall, hinting at tepid growth in Q2. IN a sign that China is heading for stagnant growth in the second quarter, advance indications released show that growth in its manufacturing sector fell this month, dragged down by new export orders. China's flash purchasing managers' index (PMI) compiled by Markit and HSBC came in at 50.5 points, against 51.6 points in March. Societe General economist Yao Wei said, following publication of the data: "This release paints a picture of a painfully slow recovery in China's manufacturing sector." Asian shares mostly fell yesterday after the data was released. Shanghai tumbled 2.57 per cent to 2,184.54; Hong Kong was down 1.08 per cent at 21,806.61. MARKET SCOOP Hong Leong Finance Q1 net profit falls 8.9% MIT posts Q4 DPU of 2.37 cents, up 6.8% First Reit posts DPU of 1.74 cents in Q1 JTC awards sites in Tuas Bay Walk, Buroh Crescent S'pore inflation eases to 3.5% in March, down from 4.9% in Feb Synear temporarily shuts Sichuan plant, warns production and sales will be affected F&N falls to 9-mth low as listing to be kept Passenger traffic hits a new high at 4.6 m CIMB Securities says... MAPLETREE COMMERCIAL TRUST | NEUTRAL | TP: S$1.47 4QFY13/FY13 DPUs came in slightly above our and consensus expectations, forming 27/102% of our FY13 forecast We expect upside from rental reversions at VivoCity to peter out in FY14 4Q DPU was up 12% yoy, thanks to positive rental reversions off a lumpy lease expiry profile and higher occupancy on existing assets VivoCity, a star performer, remains in the pink of health as it booked a 33% increase in fixed rents, while shopper traffic and tenant sales grew by 3.0% and 3.7% respectively Further leasing progress was made at PSAB Office and ARC, taking their committed occupancy to 100% and 81.9% respectively With strong rental reversions and acquisition accretion, we believe that MCT has set a high growth benchmark in FY13 that will be difficult to replicate in FY14 Trading at 1.4x P/BV and forward yields of 4.7%, we think that positives are largely priced in and further upside will have to come from major AEIs and acquisitions OCBC Securities says... WILMAR INTERNATIONAL | BUY | TP: S$3.90 Wilmar International Limited (WIL) has acquired a strategic 27.5% stake in Cosumar SA - a Morocco-based sugar producer; Cosumar is also the sole sugar supplier in Morocco and the third largest sugar producer in Africa WIL intends to focus the MAD2.3b (US$263m) acquisition with internal resources and bank borrowings WIL further believes that Cosumar provides the group with the opportunity to service a large and growing structural deficit in sugar in Morocco and the surrounding regions of Southern Europe, Northern and Western Africa While we see the latest acquisition dovetailing nicely with WIL's strategy of becoming a global sugar player, the near term impact is likely going to be muted by still-weak sugar prices Nevertheless, sugar experts believe that Asia will now be the engine for consumption growth, noting that the average level of sugar consumed in China is still very low at 10-11kgs compared to 24kgs globally Weaker sugar prices not withstanding, we believe that WIL's large distribution network in China puts the group in a good position to capitalize on the expected increase in sugar consumption there Maintain BUY with an unchanged S$3.90 fair value (based on 15x FY13F EPS) UOB KAY HIAN says... TIGER AIRWAYS | SELL | TP: S$0.63 Australian authorities approve Tiger Airways, 60% sale of Tiger Australia to Virgin Australia Tiger Airways s will book in approximately S$120m in gain on disposal of Tiger Australia, which will now become an associate Tiger Airways and Virgin Australia have committed to invest a further A$62.5m to fund growth in Tiger Australia Tiger Australia will pay Tiger Airways an annual licence fee based on % of revenue for 20 years Operationally, this is however positive as Tiger Australia will take over some of Tiger Airways fleet delivery and thus free it from capital constraints Tiger Airways is now free to focus on growing its business out of Singapore and its associates in Indonesia and Philippines We have valued Tiger Airways at 1.4x 2014 P/B, which is a premium to most airlines and have derived a fair value of S$0.63 The low fuel price environment remains the primary positive for the airline in the near term

SG: MARKET PULSE: Tiger Airways, First REIT, Nam Cheong (24 Apr 2013)

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.79

Stock Name: First REIT
Company Name: FIRST REAL ESTATE INV TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.31

Stock Name: Nam Cheong
Company Name: NAM CHEONG LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.30

MARKET PULSE: Tiger Airways, First REIT, Nam Cheong

24 Apr 2013

KEY IDEA Tiger Airways: Core strengths will emerge Following the TGR AU sale approval, investors can now look to TGR SG as the main growth driver for the Group. As a recap, TGR SG recorded an impressive set of growth figures for 9MFY13 (revenue +30.7% YoY to S$444m) while its operating statistics for the quarter just ended has been equally positive and encouraging. Although TGR will continue to experience some drag from TGR AU - albeit at a lower 40% proportion - and SEAir (which is still in its infancy), we expect TGR SG's performance to more than offset any draw-downs and continue to lead the ongoing recovery process for TGR. We reiterate our BUY rating on TGR with a lower fair value estimate of S$0.79 (S$0.86 previously) after taking into consideration the recent rights and PCCS issuance. (Lim Siyi) MORE REPORTS First REIT: Full-quarter of contributions from new assets First REIT (FREIT) reported its 1Q13 results which were within our expectations. Gross revenue grew 25.0% YoY to S$17.5m, underpinned by a full-quarter of contribution from the two properties it acquired on 30 Nov 2012. Distributable amount to unitholders and DPU increased by 16.5% and 9.4% YoY to S$11.6m and 1.74 S cents, respectively, if we exclude a special distribution made in 1Q12. Although FREIT is currently finalising its proposed acquisition of two hospitals from its sponsor Lippo Karawaci (subject to unitholders' approval at an EGM), we expect it to continue its search for more yield accretive assets in the near future. We reiterate our HOLD rating and S$1.31 fair value estimate on FREIT as we believe that its valuations are not compelling (trading at 1.6x FY13F P/B). (Wong Teck Ching Andy) Nam Cheong Ltd: Wins US$59m sale contracts Nam Cheong Ltd has secured two sale contracts with a total value of US$59m for two units of accommodation work barges (AWBs). The AWBs were sold to Perdana Petroleum Berhad, an established offshore marine service provider in Malaysia. The vessels are constructed as part of Nam Cheong's build-to-stock series in its subcontracted yards in China and are scheduled for delivery in 1H14. With this latest win, Nam Cheong's order book stands at RM1.4b. We currently have a BUYrating with S$0.30 fair value estimate on the counter. (Chia Jiunyang)

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

NEWS HEADLINES - In a sign that China is heading for stagnant growth in 2Q, Apr flash purchasing managers' index compiled by Markit and HSBC came in at 50.5 points, against 51.6 points in Mar. - Boustead Singapore has secured contracts worth $60m to design, engineer and construct key process systems and waste heat recovery units for downstream oil refineries and gas processing plants in Canada, Finland, Nigeria and Saudi Arabia. These deals raised the group's orderbook backlog to $415m. - Hong Leong Finance yesterday announced an 8.9% drop in 1Q13 net profit to $15.3m, from $16.7m a year ago. - Synear Food Holdings has temporarily shut down its production plant in Sichuan as a precautionary move due to the numerous aftershocks in the Chinese province. The plant suffered minor physical damage, it said. - Sino Construction expects to report a loss for FY2012 due to intense competition among construction players, a slowdown in the Chinese economy and property cooling measures introduced by the Chinese government. - Transit-Mixed Concrete's net profit for full year ended Feb 28, 2013 rose 15% to S$2.76m, spurred by an increase in construction activities.

MARKET PULSE: Oil & Gas Sector, Tiger Airways (6 Mar 2013)

Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.33

Stock Name: ASL Marine
Company Name: ASL MARINE HOLDINGS LTD

Research House: OCBC

Price Call: BUY

Target Price: 0.86

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: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.86

MARKET PULSE: Oil & Gas Sector, Tiger Airways

6 Mar 2013

KEY IDEA Oil and Gas sector: Valuations still not stretched Similar to 3Q12, companies in the sector presented investors with 4Q12 earnings that were mostly in line, save for a few such as Ezra Holdings (below) and STX OSV (below). Stocks in the oil and gas sector have performed well YTD, especially the small to mid cap firms. However, we note that many are still trading at or slightly above mid-cycle valuations, suggesting that multiples are not overly stretched as long as the economic recovery remains intact. Recovering earnings, sustainable earnings growth and continued contract wins for a select few are expected to be the main drivers ahead. Though we have an OVERWEIGHT rating on the oil and gas sector, investors are advised to be selective. We favour companies with earnings growth or sustainability backed by a strong order book and a positive outlook for their industry sub-segment. As such, our preferred picks are Ezion Holdings [BUY, FV: S$2.33], ASL Marine [BUY, FV: S$0.86], Keppel Corporation [BUY, FV: S$12.68] and Sembcorp Marine [BUY, FV: S$5.84]. (Low Pei Han) MORE REPORTS Tiger Airways: Positioning for growth Tiger Airways (TGR) announced yesterday that it plans to raise S$297m through a renounceable one-for-five rights issue and a non-renounceable one-for-four preferential offering of perpetual convertible securities. Although this is nearly twice the amount raised in 2011, it is necessary for the group to maintain its operational push towards its goals and was not unexpected by the street. Looking beyond the short-term jitters in terms of its share price, we wish to highlight that TGR is still on track to close out the year on a positive note, and this revitalisation of its balance sheet will give it the flexibility it needs to nurture its existing ventures. With the weak macro-environment continuing to favour budget airlines such as TGR, we leave our forecasts unchanged. Reiterate BUY at an unchanged fair value estimate of S$0.86. (Lim Siyi)

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NEWS HEADLINES - The Dow Jones rose 0.9% to clock a new high on Tuesday, surpassing levels reached more than five years ago, on indications of an improving US economy. - The Singapore government said it wants to raise the capabilities of Singaporeans as well as to calibrate the existing work pass framework. - Members of parliament said the Wage Credit Scheme may benefit larger multinational companies and government-linked firms more than the SMEs. - TTJ Holdings Limited said it had secured multiple projects totalling S$20m for the supply of structural steelworks and civil defence shelter doors in Singapore. - STATS ChipPAC said it will issue US$255m of 4.5% senior notes due 2018 in a private placement. - WE Holdings Ltd said it has received the nod from the SGX on 1 Mar to list and quote its S$6.2m placement shares on the Catalist board.