OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: PanUnited
Company Name: PAN-UNITED CORPORATION LTD

Research House: DBS Vickers

Price Call: BUY

Target Price: 1.21

Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD

Research House: UOB KayHian

Price Call: HOLD

Target Price: 11.50

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: Nomura

Price Call: BUY

Target Price: 2.61

Market Compass

18 October 2013~ Good Morning Singapore!

Singapore Idea Snippets:

18 Oct 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 : Architecture should speak of its time and place, but yearn for timelessness. - FRANK GEHRY Singapore: The Day Ahead SINGAPORE DAYBOOK : Improving tertiary education not just a numbers game: PM Lee. Unis must provide skills relevant in the future and which lead to good jobs [SINGAPORE]The government's efforts to improve Singapore's tertiary education system cannot be just about increasing the number of university places, says Prime Minister Lee Hsien Loong. Some countries have found that having a large proportion of their students going to universities "does not necessarily guarantee happy outcomes", he said at the opening ceremony of the National University of Singapore's (NUS) University Town campus last night. About 27 per cent of each cohort of students currently get a place in one of Singapore's publicly funded universities, and the target is to hit 40 per cent by 2020. In his speech, Mr Lee talked about the situation in South Korea, where more than 70 per cent of each cohort attend university. (Source: The Business Times) MARKET SCOOP Cosco Shipyard unit bags contracts worth US$233.3m SGX Q1 net profit rises 24% as revenue gains Grow-Tech Properties is top bidder for both Gambas Crescent plots Qian Hu reports S$88,000 Q3 profit Keppel Corp Q3 net profit rises 32% on property earnings Planned OUE Reit to include Shanghai's Lippo Plaza Asiasons to relook Black Elk deal after SGX rejects new share issue Singapore NODX contracts 1.2% in Sept (Source: The Business Times) DBS VICKERS Securities says ... PAN-UNITED CORPORATION | BUY | TP: S$1.21 Post acquisition of MIIF's 34.2% stake for S$101m (out of MIIF's 38% in CXP), CXP now contributes more significantly to PAN's earnings (27% vs 18% previously) Based on our estimates, the acquisition is earnings accretive and will improve FY14F's earnings by 10% We visited CXP port to gain further insight to its operations and have confidence that CXP is capable of contributing a sustainable stream of earnings to PAN going forward CXP is strategically located along the Yangtze River and is capable of serving 100,000 dwt vessels CXP enjoys a low 30% breakeven utilisation for its operations with port operational functions outsourced to third parties Cargo volumes have grown at 9% CAGR since 2005 We expect cargo volumes to be supported by robust log demand and expansion of steel and paper mills in the area As there is no longer a requirement that was made by MIIF to pay out 100% of earnings as dividends at CXP's level, management has more financial resources available to further develop the port in areas such as warehousing The CXP visit has given us confidence that earnings will be sustainable going forward We have not made any major changes to our forecast and outlook for now PAN should be able to maintain DPS despite retaining some portion of CXP's earnings for port development Reiterate BUY and S$1.21 TP UOB KAY HIAN says ... SINGAPORE AIRLINES | HOLD | TP: S$11.50 Pax traffic rose 1.8% in Sep and 4.9% for 2QFY14. 2Q loads improved 1.3ppt on the back of strong demand during Hari Raya period coupled with summer holiday leisure travel Cargo traffic declined 6.7% in sep and 7.2% during the quarter Key highlight was the 4.5ppt improvement in Europe loads for the quarter SIA attributed the improvement to better capacity management rather than a demand pickup SIA noted that efforts to boost loads continue to place downward pressure on yields Yields fell 2.6%yoy in 1Q due to competition and forex impact Loads fell 4ppt for Sep and 3.5ppt for 2Q marking the seventh consecutive month of decline Key reason was the 11.8ppt decline in West Asia loads as capacity growth far outpaced demand increase Overall some encouragement on the pax front with loads improving 4.9%yoy and 2.1%qoq 2Q loads are 1.3ppt above 2Q13 break-even loads indicating better results if yields remain firm.SIA will be reporting the results on 12th Nov(after market close) We will do a detailed results preview closer to the announcement date Maintain HOLD fair price of S$11.50, valuing it at 0.8x FY14's book value(ex- SIAEC) NOMURA Securities says... ASCENDAS REIT | BUY| TP: S$2.61 AREIT reported its 2QFY14 results on 16 October after the market closed 2QFY14 DPU of 3.6Scts (+2%y-y; +1.4%q-q) brought the 1HFY14 DPU to 7.2Scts (+1.3%y-y), which met 53.1% of our full year forecast of 13.5Scts The better-than-expected 1H performance was principally on account of: 1) marginally higher NPI; 2) lower net interest expense and 3) higher distribution from AREIT's China investment AREIT's aggregate leverage was 29.7% as of end-September (from 28.6% as of end-June; 30.5% if committed but yet-to-be-funded capex of SGD73mn were to be included) The SGD395mn CMBS due in mid-2014 could be refinanced by drawing from the SGD1.2bn revolving credit facility (33% drawn as of end-September), according to management The 2.1-3.7%q-q decline in market rents for AREIT's Business and Science Park (BSP) as well as light industrial and flatted factory portfolios during the quarter suggests a still challenging operating environment That being said, AREIT's overall portfolio appears to have held up quite well despite the challenges New and expansion leases of 53,461 sq m were signed during the quarter (vs. 44,873 sq m in 1QFY14 and 28,628 sq m in 2QFY13) with an increase of 1.5-14% in new take up rates (vs. a decline of 2.6-8% during the previous quarter) On a same-store basis, overall portfolio occupancy was slightly higher at 94.9%, vs. 94.8% at the end of the previous quarter With the exception of the previous Ultro Building (no pre-commitment yet) and the LogisTech new annex block (still in negotiation with prospective tenant), leasing for newly created space within the portfolio also appears brisk Commitment at Nexus increased to 73.9% by end-September (from 55.7% at end-June) and management expects commitment to exceed 80% soon The new factory block at Techplace II is now 22% committed Pre-commitment of the upgraded space at 31 IBP improved to 81.5% as of end-September (from 76.7% at end-June) Including leases under offer, the new warehouse space at Xilin Districentre Building D is almost fully committed In our view, AREIT's valuation remains relatively undemanding at P/B of 1.2x, based on the end-September book value of SGD1.90/unit, compared to the historical trading average of 1.3x Maintain Buy

SG: MARKET PULSE: Keppel Land, A-REIT, Midas (17 Oct 2013)

Stock Name: KepLand
Company Name: KEPPEL LAND LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 4.09

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OCBC

Price Call: BUY

Target Price: 2.45

Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.65

MARKET PULSE: Keppel Land, A-REIT, Midas

17 Oct 2013

KEY IDEA Keppel Land: A firm set of results KPLD's 3Q13 PATMI increased 70% YoY to S$126.4m mostly due to higher profits from the property development segment and a maiden contribution from Corals at Keppel Bay launched in May 13. 9MFY13 PATMI now cumulates to S$318.5m, forming 70% of our FY13 forecast which we judge to be mostly in line. KPLD sold about 310 residential units in Singapore over 9M13 and we expect the group's condominium project in Tiong Bahru to be launched next year. In China, KPLD sold a fairly impressive 3,070 units in 9M13 which we note is up three times over the 970 units in 9M12. We understand the group completed 1,800 homes in China over 9M13 and will take an opportunistic stance in launching its new projects in the pipeline. Maintain BUY with an unchanged fair value estimate of S$4.09 (30% RNAV disc.). (Eli Lee) MORE REPORTS Ascendas REIT: Continued strong execution Ascendas REIT (A-REIT) delivered a better-than-expected set of 2QFY14 results, with DPU rising 2.0% to 3.60 S cents. Leasing activity at A-REIT's portfolio assets, we note, also remained healthy during the quarter. Looking ahead, A-REIT expects occupancy in certain properties to come under pressure due to non-renewal of tenants. However, given the healthy pre-commitment rates at A-REIT City@Jinqiao and Nexus@one-north, and the completion of enhancement works at two of its properties, we expect the portfolio occupancy to remain stable or even improve going forward. In addition, management highlighted that passing rents for leases due to expire are still below spot rents, and positive rental reversions are still expected, albeit at more modest pace. We make marginal upward revisions in our FY14 forecasts to reflect the better results, but we keep our S$2.45 fair value unchanged. Maintain BUY. (Kevin Tan) Midas Holdings: Secures contracts worth CNY221.8m Midas Holdings (Midas) announced last evening that it has secured a number of contracts amounting to CNY221.8m. These include EUR17.7m (~CNY145.9m) worth of international contracts for two main train projects in Europe (delivery expected between 2013 and 2017) and metro contracts totalling CNY75.9m in China. The metro contracts from China were awarded by Midas' 32.5% owned joint-venture company, Nanjing SR Puzhen Rail Transport (NPRT) and involve a number of projects such as the Nanjing Metro Line 4 project. Deliveries for the various projects are slated to occur between 2013 and 2016. This latest development brings total YTD contract wins by Midas to ~CNY645.1m. We are keeping our estimates intact as our projections allow for such contract wins. We expect Midas' share price to react positively given these sizeable contract wins. Maintain BUY and S$0.65 fair estimate on Midas, based on 1.3x blended FY13/14F P/B. (Wong Teck Ching Andy)

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

NEWS HEADLINES

- US stocks surged on Wed, lifting the S&P 500 near its record, as the Senate reached an agreement to reopen the government and raise the debt ceiling, with votes later in the day expected to end the fiscal standoff. - Developers' private home sales surged 65% MoM to 1,246 units in Sep from 756 units in Aug, although the figure was slightly less than half the 2,621 units transacted in the primary market in Sep last year. - Jubilee Industries Holdings has unveiled a proposed reverse takeover deal involving a Malaysian property developer. - Singapore Technologies Aerospace has clinched S$600m worth of new orders in 3Q13, with projects including freighter conversions, cabin retrofitting as well as airframe, component and engine maintenance. - Higher contributions from associated firms pushed 3Q13 profit for Keppel T&T up 4.2% YoY to S$14.1m. - Loyz Energy has proposed a private placement of 50m new shares at S$0.35 each to raise net proceeds of about S$17.46m.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.74

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: DBS Vickers

Price Call: BUY

Target Price: 2.50

Stock Name: M1
Company Name: M1 LIMITED

Research House: Nomura

Price Call: BUY

Target Price: 3.18

Market Compass

18 July 2013~ Good Morning Singapore!

Singapore Idea Snippets:

18 July 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 : Losers live in the past. Winners learn from the past and enjoy working in the present toward the future. - DENIS WAITLEY Singapore: The Day Ahead SINGAPORE DAYBOOK : Falling exports may scupper GDP growth SINGAPORE] Singapore's miserable run on the exports front has continued and the advance official estimate of strong GDP growth in the last quarter may turn out to be overly optimistic. There are also questions over whether key non-oil domestic exports (NODX) will pick up steam in the second half after they wrapped up the April-June quarter with the longest run of declines since the global financial crisis. The NODX extended its fall in June with a steeper-than-expected 8.8 per cent tumble from a year ago, the fifth drop in as many months, according to the latest trade figures released yesterday by the government's trade promotion agency International Enterprise Singapore. Last month's decline followed a 4.6 per cent decrease in May and exceeded the 5.8 per cent drop which the market was looking at. Chua Hak Bin, an economist at Bank of America Merrill Lynch, calculated that the decline brought the full second quarter (Q2)'s NODX down 4.9 per cent, against a 12.5 per cent fall in the first quarter (Q1). (Source: The Business Times) MARKET SCOOP Singapore yards benefit from China shipbuilding woes Keppel Land Q2 profit up 0.9% Singaporeand Barbados sign open skies agreement SPH Reit priced at 90 cts, sees strong institutional interest Unifiberto place 74.56m new shares at S$0.02322 each CCT'sQ2 DPU at 2.07 cts, embarks on S$40m upgrade of Capital Tower Singapore's non-oil domestic exports fall 8.8% y/y in June One in 10 Singapore firms settle trade in yuan: HSBC (Source: The Business Times) UOB KAY HIAN says... CAPITACOMMERCIAL TRUST | BUY | TP: S$1.74 CapitaCommercial Trust (CCT) reported a 2Q13 distributable income of S$59.6m (+1.9% yoy, +7.0%qoq) and a DPU of 2.07 cents (+0.5% yoy, +5.6% qoq) The 1H13 DPU is in-line with our expectations, accounting for 50.1% of our full year DPU estimate of 8.0 cents 1Q13 revenues improved 1.8%yoy to S$97.5m while Net Property Income dipped 0.5%yoy to S$74.9m, due to better performance at 6 Battery Road and higher rental contribution from HSBC Building offset by lower occupancy at Capital Tower and higher property tax and operating expenses Occupancy rate rose 0.5ppt to 95.8% in 2Q13, helped by rising occupancies at 6 Battery Road and One George Street CCT signed and renewed 191,700sf of leases in 2Q13, with about 58% renewals and 42% new leases New and renewed tenants include CBRE, Mitsubishi UFJ Lease, Noonday Asset Management, AAPC Singapore and Bryan Cave Intl. Consulting Committed occupancy at 6 Battery Road rose to 1ppt qoq to 94.2% while occupancy at 1 George St rose 2.8ppt to 97.2% S$40m AEI announced for Capital Tower for the upgrading of common areas and technical specifications, with a projected return on investment of 7.8% (incremental NPI of S$3.1m) upon completion in 2Q15 Revaluation gain of S$85.3m from mid-year revaluation of properties With cap rates unchanged at 3.75% for Grade-A offices, gains were achieved primarily from higher signing rentals at CCT's properties and lower cap rates at Raffles City (down 15-20bps for retail and hotel components) Gearing fell 1.5ppt to 28.9%, due to higher asset valuations and lower borrowings, while average cost of debt also fell 0.2ppt to 2.8% as CCT adopted a 76% fixed/24% floating rate for its borrowing Sensitivity to a rise in the interest rate remains low as a 50bps increase in interest rate will impact DPU by -1% Average debt maturity fell 0.2 years to 2.8 years CCT has a debt headroom of S$1.2b for acquisitions before reaching a gearing of 40% Expiry of yield protection may be mitigated by retained earnings from Quill Management anticipates that estimated impact from the loss of yield protection at One George Street from July 2013 will be S$8m for 2H13 (7% of 1H13 distributable income) However, this will be mitigated by better portfolio occupancies, positive rental reversions and savings on interest expense In addition, CCT has retained S$10.8m of distributable income from Quill Capita Trust, which may be used for potential distribution to unitholders Positive rental reversions with average portfolio rents up 1.7% qoq to S$7.96 psf pm in 2Q13 from S$7.83 psf pm in the previous quarter AEI and redevelopment works remain on track, with CapitaGreen due to be completed in 4Q14, and the asset enhancement works (AEI) at Raffles City also due to be completed in 2Q14 AEI works at 6 Battery Road are due to be completed by 4Q13 We have a BUY on CCT with a target price of S$1.74 based on DDM (required rate of return: 7.2%, terminal growth: 2.2%) DBS VICKERS Securities says ... ASCENDAS REIT | BUY | TP: S$2.50 A-REIT's 1Q14 results were in line, with gross revenues and net property income growing 6% and 7% to S$150.9m and S$108.0m, respectively This was largely due to the acquisition of The Galen, supported by an organic uplift in rents Rental reversions remained positive at c9.6% compared to previously contracted rents while occupancy rates dipped slightly to 93.6% due to conversion of certain single-tenanted properties into multi- tenanted properties Weighted all-in cost declined slightly to 3.09% (vs 3.32%) but is expected to remain stable going forward Distributable income came in 11.3% higher at S$85.2m, translating to a DPU of 3.55 Scts for the quarter (+0.6% due to an enlarged share base) The recent completion of Unilever Four Aces Singapore (a built-to-suit facility) and the acquisition of A-REIT City @ Jinqiao are expected to start kicking in from 2Q14 We note that there is a S$13.5m rental guarantee on the latter, which will mitigate any earnings downside REIT has commenced leasing of the space, which is currently 3% leased with a further 20% of the space under negotiation A-REIT has an active good pipeline of development and asset enhancement projects (AEI), with an additional 3 AEIs at Techquest, LogisTech and Corporation Place unveiled, costing cS$25.4m and will complete in 2Q14 Together with its other developments, A-REIT has an additional S$190.8m in investments (new and uncompleted projects) that have yet to be funded Growth momentum will pick up from end of FY14F as these projects are progressively completed from 2HCY13. Amongst the development projects, Nexus@one-north, the largest development project in its pipeline (completing in 3QCY13), is seeing improving take-up rates, with reported occupancy of close to 58% Our TP is revised to S$2.50 as we raised our risk free rate assumption (2.6% vs 1.8%) We continue to like A-REIT for its stability and attractive yield of c6.1-6.5%. Upside to earnings will be acquisitions, which the manager is currently reviewing NOMURA Securities says... M1 | BUY | TP: S$3.18 A steady performance from M1 with service revenue 2% ahead of our expectations while EBITDA came slightly below due to mix change in handset sales Service revenue grew 9%, EBITDA grew 6% with 37% margin, and NPAT grew 11% y-y Management reaffirmed its FY13 guidance for moderate NPAT growth Key takeaways from the result to highlight: Some sequential improvement in postpaid ARPUs from data re-pricing Postpaid ARPU rose 2% q-q compared to a flat to 2% q-q decline for the past four quarters This, however, has a long way to go still as only 26% of postpaid customers are on tiered data plans now and only around 15% of subs appear to be exceeding data allowances M1 is also in discussion with OTT players for revenue sharing arrangements to protect ARPU\ Handsets continue to create margin volatilities Service margin fell from 39% in 1Q to 37% due to a rising mix of Android devices and accounting of these devices (expensed up front) Android handsets are now at 75% of the mix, from 60% in 1Q and 40% a year ago M1 has 67k fibre subs now with net adds of 7k This is around 3% of its total wireless base - improving this ratio is key to improving churn We estimate M1's fibre revenue contribution is SGD9mn, vs wholesale fixed cost of SGD7mn (excluding and advertising and other costs) FY13 capex guidance is now for SGD130mn, or at the lower end of its initial guidance This excludes payment for recently won spectrum, which will occur in end 2014 (SGD40mn) and 2016 (SGD64mn) We maintain Buy M1 has declared a 6.8sen dividend. Its 5% yield remains appealing and the stock is now trading at 17x FY13F P/E

SG: MARKET PULSE: A-REIT, M1, CCT (17 Jul 2013)

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OCBC

Price Call: BUY

Target Price: 2.45

Stock Name: M1
Company Name: M1 LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 3.10

Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.80

MARKET PULSE: A-REIT, M1, CCT

17 Jul 2013

KEY IDEA Ascendas REIT: Apparent growth drivers Ascendas REIT (A-REIT) reported NPI of S$108.0m and amount available for distribution of S$85.2m, up 6.8% and 11.3% YoY respectively. The increase was driven mainly by contribution from its newly-acquired The Galen and positive rental reversions. On the operational front, A-REIT continued to deliver as well. Despite starting FY14 with 21.4% of its revenue due for renewal, A-REIT has managed to reduce the figure significantly to 14.8%, thanks to its proactive portfolio management. Moreover, positive rental reversions averaging 9.6% were achieved across all its property segments. During the quarter, A-REIT also announced three new asset enhancement works to optimize its yield. In addition, we understand that A-REIT has completed the purchase of its second property in China in Jul, and is actively working to fill the spaces. These efforts, together with continued higher renewal rents and vacancies at its existing portfolio, are likely to provide further upside in its NPI. We are keeping our FY14 forecasts unchanged as the 1Q performance was within view. Maintain BUY and S$2.45 fair value on A-REIT. (Kevin Tan) MORE REPORTS M1: 1H13 results mostly in line - HOLD M1 Ltd saw its 2Q13 revenue +5.3% YoY (+0.6% QoQ) at S$244.5m, and was just 1.4% shy of our forecast, as smartphone customers and usage continue to drive revenue growth. Net profit climbed 11.2% YoY (-4.5% QoQ) to S$39.2m, or about 3% ahead of our estimate. 1H13 revenue slipped 1.5% to S$487.5m, meeting 42.7% of our full-year forecast (due to lower handset sales in 1Q13), but net profit rose 6.1% to S$80.2m, or 51.8% of our FY13 estimate. M1 declared an interim dividend of S$0.068/share, versus S$0.066 last year. With only very minor adjustments (<0.5%) to our FY13 and FY14 earnings forecasts, our DCF-based fair value remains at S$3.10; we have already factored higher interest rate assumptions in our model. Maintain HOLD for decent dividend yield of 4.7%. (Carey Wong) CapitaCommercial Trust: 2Q13 results within expectations CapitaCommercial Trust (CCT) reported 2Q13 distributable income of S$59.6m - 1.9% higher YoY. This cumulates to a 1H13 distributable income of S$115.3m, up 2.6% YoY, which is within expectations and make up 50.3% of our FY13 forecast. 2Q13 DPU is 2.07 S-cents which translates to a 5.4% distribution yield based on the last closing price of S$1.50. The growth in distributable income was mainly due to higher revenue contributions across portfolio properties, except Capital Tower, and lower finance costs which dipped S$3.4m QoQ due to reduced interest costs. Portfolio occupancy remained stable at 95.8% as of end 2Q13, versus 95.3% in the previous quarter. As a result of continued rental reversions, CCT's average committed office portfolio rentals increased from S$7.83 to S$7.96. We will be speaking further with management regarding these results and, in the meantime, put our Buy rating and fair value estimate of S$1.80 UNDER REVIEW. (Eli Lee)

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

NEWS HEADLINES - US stocks declined on Tue, with the S&P 500 breaking an eight-session winning streak after a Federal Reserve member urged reduced stimulus and Coca-Cola Co.'s profit fell. - The Monetary Authority of Singapore said the local banks are not at risk and regular stress tests have shown that adequate buffers are in place to cope with the upturn in interest rates. - United Overseas Bank has successfully sold a new bank debt with a loss absorption feature, in compliance with stricter Basel III rules on capital, the first Asian bank to do so. - United Fiber System has gone forward with its plan to acquire coal miner PT Golden Energy Mines (Gems) for S$1.88b in a reverse takeover deal with PT Dian Swastatika Sentosa (DSS).

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Starhill Gbl
Company Name: STARHILL GLOBAL REIT

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.06

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 4.29

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: UOB KayHian

Price Call: BUY

Target Price: 2.86

Market Compass

12 June 2013~ Good Morning Singapore!

Singapore Idea Snippets:

12 June 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 : Life is 10 percent what you make it, and 90 percent how you take it. - IRVING BERLIN Singapore: The Day Ahead SINGAPORE DAYBOOK:DBS wants to buy entire stake in Danamon: chairman. A smaller stake will require a review of the economics of the deal, he says [SINGAPORE] Peter Seah, DBS Group Holdings chairman, yesterday told BT that the bank would still want to buy Temasek Holdings' entire stake in PT Bank Danamon Indonesia. A smaller stake would require a review of the economics of the deal, he said. "We entered into an agreement to buy Temasek's stake in Danamon. Having done that, we hope it'll get approval (from the Indonesian authorities)." Mr Seah's comments on the Danamon acquisition came in an interview with BT on Singapore's evolving banking landscape. "Indonesia is an attractive market and fits very well into our Asian strategy," he said (Source: The Business Times) MARKET SCOOP Medi-FlexQ3 profit jumps to RM5.1 million Low Keng Huat's units transfer retail units at Paya Lebar Sq Indonesian state-owned servicing firm plans year-end IPO San Miguel sells control of banking unit to Malaysia's CIMB Petronasto spend US$5b on Canadian LNG project -exec UEproposes 1-for-1 rights issue after WBL takeover GuocoLeisurelaunches global hotel management company (Source: The Business Times) UOB KAY HIAN says... STARHILL GLOBAL REIT | BUY | TP: S$1.06 Starhill Global REIT (SGREIT) has announced that the Toshin master lease has been renewed at a rate which is 6.7% higher than the prevailing rate This is based on the average of three market valuations by independent market valuers The renewal rent will be valid for a period of 12 years from 8 June 2013, with a provision for a rental review every three years during the renewal period We estimate that the rental uplift will provide a 1% and 2% accretion to 2013 DPU and 2014 DPU respectively We have a BUY recommendation on SGREIT with a target price of S$1.06, based on the dividend discount model (required rate of return: 6.5%, terminal growth: 2.0%) OCBC Securities says ... CAPITALAND LIMITED | BUY | TP: S$4.29 CapitaLand (CAPL) announced yesterday that it has secured a contract to manage a serviced residence in Alabang, a major business district in Metro Manila, Philippines The 150-unit Somerset Alabang Manila is expected to open in 2017 and will be The Ascott Ltd's (Ascott) eighth property in the Philippines Over the last month, we note the Ascott Limited secured two management contracts in Wuxi, China (the 134-unit Ascott Central Wuxi and 169-unit Somerset Wuxi), one contract in Riyadh, Saudi Arabia (the 230 unit Ascott Olaya Riyadh) and two in Jeddah, Saudi Arabia (the 166-unit Citadines Tahlia Jeddah and 136-unit Citadines Al Salamah Jeddah) This carries on a track record of robust growth for CAPL's serviced residence business where the number of owned/managed units has grown at a CAGR of 13% since 2000 Ascott is now the world's largest international serviced residence owner-operator with 31,770 units in 78 cities as at end 1Q13 Over 1Q13, overall portfolio REVPAU remained stable at S$109, with China, Europe and the Gulf region and India up 4%, 2% and 2% YoY, respectively We see the continued growth of CAPL's serviced residence business extending its competitive edge in terms of scale and branding With about S$0.9b of assets under development (on an effective stake basis), Ascott enjoys a good pipeline for capital recycling and growing the Ascott REIT ahead The group recently divested three Chinese properties and 11 Japan properties to the Reit with a gain of S$15m and the transaction is expected to complete in 2Q13 We continue to favor CapitaLand for its diversified real estate portfolio across asset classes, its strong balance sheet and renewed management focus on improving shareholder ROE Maintain BUY with an unchanged fair value estimate of S$4.29 (20% discount to RNAV) UOB KAY HIAN says... ASCENDAS REIT | BUY | TP: S$2.86 Upgrade to BUY (from HOLD) with an unchanged target price of S$2.86, based on Dividend Discount Model (required rate of return: 6.8%, terminal growth: 2.0%) AREIT share price has seen the sharpest share price correction of 19% amongst the S-REITs under coverage vs an 11% correction for the sector Valuations are looking attractive with a forward yield of 6.7% relative to large-cap industrial peers (MINT: 7.0%, MLT:6.3%). P/B of 1.2x for AREIT is lower than the 1.3 for large-cap industrial REITs Growth fundamentals remain intact with DPU expected to grow 4% in FY14 and 8% in Y15 on the back of positive rental reversions, completion of asset enhancements and the completion of new developments Business park rentals are expected to remain resilient in light of the bottoming of office rentals in 2013 Gearing at 28.3% in 1Q13, its lowest point in over four years as AREIT issued 160m new units to raise S$406m (S$2.54 per unit) in a March private placement Even after factoring in committed investments, gearing is expected to rise only to 30.4%, giving AREIT headroom of S$1.9b for acquisitions before reaching 45% gearing The conservative gearing structure, which is one of the lowest amongst the S-REITs, also means that the impact of a rise in interest rates will be muted AREIT has taken advantage of the low interest rate environment to extend its debt maturity to 3.9 years, which is 18% longer than its average maturity of 3.3 years between 2009 and 2011 Over 50% of AREIT's debt is maturing in three years or later, with debt tenure extended to as long as 2024 (11 years) All-in interest costs have fallen only 11% from the 2009-11 average of 3.7% to 3.4% in 1Q13 as AREIT has opted to extend maturities in-lieu of lower financing costs A gradual rise in interest rates can be mitigated by shortening debt tenure

SG: MARKET PULSE: Property Sector, First REIT, A-REIT, KepCorp, FEHT (16 Apr 2013) - Resend

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 4.29

Stock Name: KepLand
Company Name: KEPPEL LAND LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 4.53

Stock Name: CapMallsAsia
Company Name: CAPITAMALLS ASIA LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.55

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

Research House: OCBC

Price Call: HOLD

Target Price: 1.31

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 2.63

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 12.68

MARKET PULSE: Property Sector, First REIT, A-REIT, KepCorp, FEHT

16 Apr 2013

KEY IDEA Singapore Residential Property: Wave of launches driving firm Mar sales Summary: URA reported that a headline total of 3,072 new private homes (including 279 EC units) were sold in Mar 13, which was up 235% MoM and 1% YoY. These healthy numbers were driven by a wave of new launches after the Lunar New Year, including D'Nest (912 total units, Pasir Ris) 699 units sold at a median S$963 psf, Bartley Ridge (868 total units, Mt Vernon Rd) 367 units sold at S$1,296 psf and Urban Vista (582 total units, Tanah Merah) 348 units sold at S$1,503 psf. We see sales reflecting still firm residential demand and an environment of continued liquidity but remain cognizant of potential incremental curbs should the housing sector show excessive activity going forward. Maintain NEUTRAL on the residential property sector and we prefer developers with strong balance sheets and diversified exposure. Our top picks are CapitaLand [BUY, S$4.29], Keppel Land [BUY, S$4.53] and CapitaMalls Asia [BUY, S$2.55]. (Eli Lee) MORE REPORTS First REIT: No major impact from possible Siloam Hospitals IPO Summary: News agency Reuters reported that Lippo Karawaci (Lippo), which is First REIT's (FREIT) sponsor, is seeking to raise at least US$200m in an IPO of its Siloam Hospitals healthcare division. We do not foresee any major impact to FREIT's prospects, as we believe that FREIT would remain as an important vehicle for Lippo to implement its asset-light strategy. Moreover, FREIT has a right-of-first-refusal for the purchase of healthcare assets from its sponsor and/or any of its subsidiaries. Meanwhile, FREIT will hold an EGM on 29 Apr to seek unitholders' approval in relation to its two proposed acquisitions from Lippo. As we expect the acquisitions to be DPU accretive and value-enhancing to unitholders, we expect unit-holders to vote in favour of the proposed conditions. Maintain HOLD and S$1.31 fair value estimate on FREIT. (Wong Teck Ching Andy) Ascendas REIT: Strength reflected in price Summary: Ascendas REIT's (A-REIT) FY13 DPU totalled 13.74 S cents, up 1.3%. This is somewhat below our and street's full-year estimates of 14.0-14.2 S cents. Excluding performance fee, however, we note that DPU would have grown 3.6% to 14.05 S cents, closer to our projections. Looking ahead, A-REIT expects the positive rental reversions to persist, albeit at a slower pace. Management also pointed out there is ~10% vacancy in the multi-tenanted portion of its portfolio, which may provide upside if these spaces are leased out. During the quarter, A-REIT announced the development of DBS Asia Hub Phase 2 for S$21.8m and two new asset enhancement projects totalling S$14.0m. These initiatives, together with the announced investments, are likely to maintain its stable performance in FY14, in our view. We incorporate the results into our forecasts and roll over our valuation to FY14. Maintain HOLD with a marginally higher fair value of S$2.63 (previously S$2.60) on A-REIT. (Kevin Tan) Keppel Corporation: Secures US$226m jack-up rig contract from Falcon Summary: Keppel Corporation (KEP) announced that its O&M arm has secured a US$226m contract from Falcon Energy to construct a KFELS Super B Class jack-up rig. Recall that KEP won a US$820m contract for four jack-up rigs from Grupo R in Mar (KFELS B Class design) and a US$225m contract from Ensco in early Apr (KFELS B Class design). The latter figure includes the construction cost, commissioning, systems integration testing and project management costs. Meanwhile, the last time Keppel secured a KFELS Super B Class jack-up rig was in Mar 2011 for US$210m. This latest order brings KEP's YTD orders to about S$2.2b, accounting for about 43% of our full year order win estimate. Maintain BUY with S$12.68 fair value estimate on KEP; the group will also be announcing its results on 18 Apr 2013. (Low Pei Han) Far East Hospitality Trust: Agreement to acquire Rendezvous Grand Hotel Singapore Summary: Far East Hospitality Trust (FEHT) has entered into an agreement with The Straits Trading Company Limited (STC) to acquire Rendezvous Grand Hotel Singapore and Rendezvous Gallery (70-year old leasehold estate) for an estimated total cost of acquisition of S$270.1m. The acquisition will be financed by the proposed issue proposed issue of new stapled securities in FEHT to STC (S$68.0m), the Sponsor (S$67.8m), as well as debt facilities (S$132.2m). The pro forma effects of the acquisition for FY12 (27 Aug-31 Dec) would have been an increase in DPU from 2.09 S-cents to 2.12 S-cents. Pro-forma effect on NAV per stapled security as of 31 Dec 2012 would have been an increase from 97 S-cents to 98 S-cents. This is Far East H-Trust's first acquisition since its initial public offering in August 2012. The master leasee will be a member of the Far East Organization group of companies. We maintain a HOLD rating but place our fair value of S$1.05 under review. (Sarah Ong)

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

NEWS HEADLINES - US equity indexes fell the most in five months, with the prices of commodities dropping after disappointing growth numbers from China and bomb blasts at the Boston Marathon. - Keppel REIT's net property income increased 20.7% YoY to $34.4m primarily due to improved performance from Ocean Financial Centre and 77 King Street. - Qian Hu's 1Q13 net profit fell 88% YoY to S$62k. Revenue declined 2% YoY to S$20.2m. - K-Green Trust achieved 1Q13 profit after tax of $3.2 m, down 10% YoY. Cash flow from operating activities was S$9.8m, down 16% YoY. - Sino Gradness has reported that it received tremendous response at a Chengdu trade exhibition, with indicative orders for "Garden Fresh" juices received to-date exceeding RMB290m, ~45% more than last year.

SG: MARKET PULSE: A-REIT, Singapore Post, Cache Logistics (19 Mar 2013)

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 2.60

Stock Name: SingPost
Company Name: SINGAPORE POST LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 1.23

Stock Name: CACHE
Company Name: CACHE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.34

MARKET PULSE: A-REIT, Singapore Post, Cache Logistics

19 Mar 2013

KEY IDEA Ascendas REIT: Acquires property following placement Ascendas REIT (A-REIT) yesterday announced the proposed acquisition of The Galen at 61 Science Park Road for a purchase consideration of S$126.0m. The Galen is a six-storey multi-tenanted science park building located within Singapore Science Park II and has a NLA of 234,384 sqft. It is currently 97.5% occupied, with Ascendas Land and the REIT manager taking up c. 22.5% of the lease space. The property, we note, was first mentioned as a potential acquisition asset when it raised S$406.4m through a private placement of 160m new units on 8 Mar. According to A-REIT, the asset is expected to generate a NPI yield of 6.8% and add 0.052 S cents to its DPU on an annualised basis, assuming the acquisition is fully funded using the proceeds from the placement. This is in line with our initial assumptions made on the transaction. We maintain HOLD on A-REIT with an unchanged fair value of S$2.60. (Kevin Tan) MORE REPORTS Singapore Post: Awaiting news of larger acquisitions In recent months, Singapore Post (SingPost) has been acquiring stakes in companies to build its non-mail businesses - it completed the 100% acquisition of General Storage Company Pte Ltd (GSC) in end Jan for S$37m and the 62.5% acquisition of Famous Holdings Pte Ltd (FH) in end Feb this year for S$60m. We see synergies with the group's logistics and e-commerce businesses, but note that these acquisitions remain on a relatively small scale as we await news of larger acquisitions. Meanwhile, the stock has been trading in a range of S$1.18-S$1.23 since we downgraded it to HOLD on 28 Jan. We like SingPost's stable operating cash flows and consistent dividends, but see few re-rating catalysts for now. Maintain HOLD with S$1.23 fair value estimate. (Low Pei Han) Cache Logistics Trust: Private placement to fund acquisition Cache Logistics Trust (CACHE) has exercised the call option and entered into the S&P agreement with Precise Development Pte Ltd to acquire the fully ramp-up warehouse known as Precise Two last evening. Separately, CACHE is proposing to carry out a private placement of 70m new units to institutional and other investors at an issue price of S$1.24-S$1.265 apiece. About S$86.8m in gross proceeds are expected to be raised (based on S$1.24 issue price), of which 66.0% (~S$57.3m) will be used to wholly fund the proposed acquisition of Precise Two, while the balance will be deployed to fund future investments or pare down debt. We understand that the issue price will be determined by today. An advanced distribution of ~2.12 S cents per unit is also expected to be paid to entitled unitholders around 26 Apr. We are currently reviewing our estimates as we have previously anticipated the acquisition to be fully funded by debt. For now, we place our Buy rating and S$1.34 fair value under review. (Kevin Tan)

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

NEWS HEADLINES - US stocks on Monday fell for a second session as Europe's efforts to get a handle on a rescue of Cyprus provided enough uncertainty for a much-anticipated retreat on Wall Street. - Singapore's non-oil domestic exports fell 30.6% YoY last month, dragged down by a sharp drop in pharmaceuticals and oil rigs and continued weakness in electronics. - The Asian Development Bank has sounded a strong warning about the danger of "asset bubbles" developing in the region's local-currency bond markets. - S-REITs are exposing themselves to various risks as they rely more and more on debt financing, a trend that is likely to continue this year, according to Fitch Ratings. - Yongnam Holdings said it intends to diversify its business into the business of investing into infrastructural developments in addition to the group's current core business.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OSK

Price Call: HOLD

Target Price: 2.73

Stock Name: OUE Ltd
Company Name: OVERSEAS UNION ENTERPRISE LTD

Research House: UOB KayHian

Price Call: BUY

Target Price: 3.36

Stock Name: Tat Hong
Company Name: TAT HONG HOLDINGS LTD

Research House: CIMB

Price Call: BUY

Target Price: 1.90

Market Compass

12 March 2013~ Good Morning Singapore!

Singapore Idea Snippets:

12 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:You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. - STEVE JOBS Singapore: The Day Ahead SINGAPORE DAYBOOK:OUE buys tallest building in California for US$367.5m [SINGAPORE] It pays to keep your chin up even after two failed takeover attempts, especially for Overseas Union Enterprise (OUE). Now, the property group will be able to look upwards at the tallest building in California that it will soon own. The property group announced yesterday that it will buy the 1,018-foot- high US Bank Tower in downtown Los Angeles for US$367.5 million. The tower is the 10th tallest building in the United States, almost three-quarters the height of the Empire State Building in New York. It has 72 floors of office space, six levels of underground parking and covers an area of about 1.4 million square feet. As part of the deal, OUE is also buying the accompanying Maguire Gardens and a car park facility. MARKET SCOOP WBL Q1 profit falls 74.3% SingXpress plans US expansion, proposes to raise capital S'pore tourism receipts to hit between S$23.5-24.5b this year Retail electricity mkt to be liberalised further Tiger Airways Feb passenger numbers up 44% China Environmental in the red, hit by climate change DMG OSK Securities says... ASCENDAS REIT | NEUTRAL | TP: S$2.73 Ascendas REIT (recently proposed the placement of 140m new shares (with an upsize option of 20m new units) at price range of SGD2.50 to SGD2.55, posting a discount of 3.8% - 5.7% from Thursday's closing price Fund potential acquisition of a property located within Singapore Science Park II Fund potential acquisition of an integrated industrial mixed use property at Kallang Avenue Of two properties that are to be acquired, based on the rental rate of the surrounding area, we expect the building at Science Park and the property at Kallang Avenue to provide the AREIT with an average yield of 6.8% and 6.2% respectively Maintain NEUTRAL with slightly higher TP SGD2.73 UOB KAY HIAN says... OVERSEAS UNION ENTERPRISE | BUY | TP: S$3.36 OUE's 2012 results were in line with our expectation Office leasing momentum picked up in newly-completed buildings The hotel segment is remaining steady OUE is re-evaluating options to REIT its hospitality assets and is discussing some plans to strengthen this portfolio Management is on the lookout for expansion opportunities in Singapore, the US and tier-3 cities in China We increased our target price to S$3.36, pegged at a 20% discount to our higher RNAV of S$4.20 CIMB Securities says... TAT HONG HOLDINGS | OUTPERFORM | TP: S$1.90 Hoisting sustainable growth Earnings sustainability is organically driven while M&A ventures in resilient sectors/markets would lift its growth trajectory Excitement over Singapore-Malaysia link projects is grabbing the headlines now The group's 25ha land in Iskandar, bought two years ago, has gone up in value but is still recorded at historical cost Current utilisation for crawler and mobile cranes is 71%, suggesting sufficient headroom for more optimization We maintain our earnings estimates, target price basis of 11x CY14 P/E (5-year average forward P/E) and Outperform rating

MARKET PULSE: Healthcare Sector, A-REIT, SPH (11 Mar 2013)

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 2.60

Stock Name: SPH
Company Name: SINGAPORE PRESS HLDGS LTD

Research House: OCBC

Price Call: HOLD

Target Price: 4.05

MARKET PULSE: Healthcare Sector, A-REIT, SPH

11 Mar 2013

KEY IDEA Healthcare Sector: 4QCY12 results roundup Summary: The healthcare companies under our coverage reported a contrasting set of results during the recently concluded 4QCY12 results season. While Raffles Medical Group (RMG) delivered double-digit YoY revenue and core PATMI growth which were in line with our expectations, Biosensors International Group's (BIG) results missed ours and the street's estimates. However, this was due to weak licensing revenue from Japan. Its core drug-eluting stent (DES) business continued to perform well. Other healthcare companies, notably IHH and Q&M Dental, have also largely delivered growth in 4QCY12. We maintain our OVERWEIGHTrating on the healthcare sector as we are still positive on the growth trajectory of the industry. BIG [BUY; FV: S$1.63] remains our preferred pick within the sector. Despite its recent share price decline, which we attribute partly to market jittery over the uncertainty of its acquisition timeline, we are optimistic that management would be able to finalise earnings accretive acquisition(s) in the near future. (Wong Teck Ching Andy) MORE REPORTS Ascendas REIT: First acquisition in three quarters Summary: Ascendas REIT (A-REIT) has raised gross proceeds of ~S$406.4m through a private placement. Management intends to use the bulk of the gross proceeds to fund the potential acquisition of a property within Singapore Science Park II and an integrated industrial mixed-use property at Kallang Avenue. We project the initial NPI yields for both assets to come in at around the 6%-handle, comparable to A-REIT's implied portfolio yield. Aggregate leverage is expected to increase slightly from 32.8% as at 31 Dec 2012 to 34.6%, assuming that the potential acquisitions and committed investments are funded immediately after the placement. However, as the Kallang Avenue property is expected to obtain TOP only around mid-2014, we believe part of the proceeds may be used to repay debt pending its deployment. We now factor in the proposed acquisitions and placement into our forecasts. This raises our fair value from S$2.43 to S$2.60. However, as A-REIT appears to be fairly priced at current level, we maintain our HOLD rating. (Kevin Tan) Singapore Press Holdings: Exploring a REIT listing Summary: Friday evening, Singapore Press Holdings (SPH) announced that it is exploring a REIT listing on the SGX Mainboard. The properties forming the REIT and the terms at which they would be injected are currently under review. We note that SPH now holds three retail mall assets: Paragon currently valued at S$2.43b; a 60% stake in Clementi Mall valued at S$598m (100% basis); and a 70% stake in Seletar Mall, currently under development, valued at S$505m (100% basis). If this transaction does occur, we see it to be a favorable move which would unlock additional value from its mall assets, by housing them in a more tax-effective REIT structure, and recycle capital back into the group's growing retail mall business. More importantly, we see this move to have deeper implications from a strategic perspective. The group has steadily built up a solid skill-set as a retail mall developer and manager over the last few years, and the establishment of a REIT, as a destination for stabilized assets, would further enhance its position as a major player with end-to-end capabilities, from developing greenfield projects to managing stabilized REIT assets. We would speak with management further regarding this development and, in the meantime, put our Hold rating and fair value estimate of S$4.05 UNDER REVIEW. (Eli Lee)

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

NEWS HEADLINES - The HDB will contemplate returning to a model where flat owners can only sell their units back to HDB as a way to drive down prices of new flats. Other measures being considered include lengthening the minimum occupancy period and shortening leases. - According to the data from SLP International, demand for strata factories moderated following the introduction of the seller's stamp duty in January this year. - Transcu Group has appointed its founder, Akihiko Matsumura, as chairman of the board, after the passing of its previous chairman, Hironori Aihara - Jardine Matheson Holdings on Friday reported a 51% fall in net profit to US$1.69m from US$3.45m a year ago for the fiscal year ended Dec 31, 2012. - Raffles Education Corporation on Friday announced plans to set up a university in Sri Lanka with an investment of S$25m, over five years.

MARKET PULSE: CMA, A-REIT, Ezion, YZJ (16 Jan 2013)

Stock Name: CapMallsAsia
Company Name: CAPITAMALLS ASIA LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.55

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 2.43

Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.95

MARKET PULSE: CMA, A-REIT, Ezion, YZJ

16 Jan 2013

KEY IDEA CapitaMalls Asia: Deepening its presence in Wuhan China CapitaMalls Asia (CMA) announced yesterday that it has been awarded a 70,400 sqm land site in Wuhan, China for RMB660m (S$128m) or RMB2,700 per sqm. The envisioned development would consist of a six-storey shopping mall and two office towers to open in 2015. Estimated total GFA is 240k sqm (160k sqm retail, and 80k sqm office), with a total development cost of ~RMB 2,800m (S$543m) or RMB 12,000 per sqm. We continue to favor CMA for executing sharply on a well thought-out strategy: active capital deployment into its growth market China through deepening its operational presence in key cities. Maintain BUY with an increased fair value estimate of S$2.55, versus S$2.16 previously, as we update our model for firmer cap rate assumptions and valuations of listed holdings. (Eli Lee) MORE REPORTS Ascendas REIT: Paying premium for strength Ascendas REIT (A-REIT) reported a 4.0% YoY increase in 3QFY13 DPU to 3.62 S cents. This brings the 9MFY13 DPU to 10.68 S cents (+6.2%), forming 76% of both our and consensus full-year DPU projection. The strong performance, we note, was driven by recognition of full-quarter rental income earned from completed development projects and new acquisitions over the past year. Portfolio occupancy as at 31 Dec 2012 was also stable at 94.0% on a sequential basis. In addition, A-REIT continued to achieve positive rental reversions averaging 18.5% across all its property types in 3Q. While A-REIT has been quiet on its acquisition front in FY13, it continues to be actively involved in asset enhancement (AEI) / development activities to boost its returns on its portfolio. This should sustain its growth profile in our view. We are maintaining our HOLD rating with an unchanged fair value of S$2.43 as the stock appears fairly priced at current level. (Kevin Tan) Ezion Holdings: Secures LOI for a liftboat charter worth US$116.8m Ezion Holdings (Ezion) announced that it has secured a letter of intent from a SE Asian state-linked corporation for the charter of one unit of liftboat over a four-year period with an approximate contract value of up to US$116.8m. The liftboat is expected to be deployed in SE Asia upon its completion at end 2014, and the charter is likely to commence in 1Q15. Confirmation of this contract would further lengthen the group's earnings visibility. We will have more details after an analyst briefing this morning. For now, we maintain our BUY rating on the stock and S$2.05 fair value estimate on Ezion. (Low Pei Han) Yangzijiang Shipbuilding: Proposes warrants issue for general working capital Yangzijiang Shipbuilding (YZJ) has proposed an issue of 330m warrants at an issue price of RMB0.3072 (S$0.0605) per warrant, each with the right to subscribe for one new ordinary YZJ share at RMB7.617/share (S$1.50). The expiry date of the warrants is 29 Apr 2016. Net proceeds from the warrant issue will be about RMB92.17m (~S$18.15m), and YZJ intends to use them for general working capital purposes. Based on the warrant strike price, assuming all warrants are exercised, YZJ will receive additional proceeds of about RMB2,514m (~S$495m), which will also be used for general working capital. Pending more details from management, we put our Hold rating and fair value estimate of S$0.95 under review. (Low Pei Han)

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

NEWS HEADLINES - The S&P 500 Index rose 0.1% on Tues, with its worst performer being Apple Inc., which closed down 3.2% on concerns about slow demand for the iPhone 5. - Regarding the takeover battle for F&N, the Securities Industry Council has stated that the final time by which TCC Assets or OUE Baytown can revise their offers is 5.30pm on Jan 20, after which an auction procedure will kick in if a competitive environment still exists. - Armarda Group expects to remain loss making and report a loss for 3QFY13 ended 31 Dec 2012. - Pan Pacific Hotels Group's 367-room Parkroyal on Pickering, located across from Hong Lim Park, opens today. The introductory rate is S$238 a night. - Mun Siong Engineering has been awarded a term contract from a new customer, bringing the total number of recurring term maintenance contracts for the company to eight.

MARKET PULSE: Ezra, SPH, CMA, A-REIT, Lian Beng (15 Jan 2013)

Stock Name: SPH
Company Name: SINGAPORE PRESS HLDGS LTD

Research House: OCBC

Price Call: HOLD

Target Price: 4.05

Stock Name: CapMallsAsia
Company Name: CAPITAMALLS ASIA LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.16

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 2.43

MARKET PULSE: Ezra, SPH, CMA, A-REIT, Lian Beng

15 Jan 2013

KEY IDEA Ezra Holdings: Share price has run up; downgrade to HOLD Summary: Ezra Holdings (Ezra) reported a 54% YoY rise in revenue to US$278.7m and a 44% rise in gross profit to US$49.9m in 1QFY13. But higher administrative expenses, a lower share of profit of associated companies, and a higher tax rate led to a 49% fall in net profit to US$6.8m. Though the fall in core net profit is lower at 16%, the 1QFY13 amount of US$4.3m represents only about 13% of our full year core net profit estimate of US$33m, which is already one of the lowest in the street. Still, we expect better performance in 2HFY13 as the subsea division continues to grow. Ezra's share price has run up by about 18.5% since our last report on 3 Dec 2012. Due to limited upside potential, we downgrade our rating to HOLD. (Low Pei Han) MORE REPORTS Singapore Press Holdings: Circulation and ad revenues continue weak trend Summary: Singapore Press Holdings (SPH) reported 1QFY13 PATMI of S$91.1m which was 6.6% lower YoY mostly due to a reduced contribution from the Newspaper and Magazine and the exhibitions business. 1QFY13 PATMI now forms 24.3% of our annual forecast and is broadly in line with expectations. Of note, circulation revenues declined by S$1.3m (down 2.6% YoY) to S$49.0m during the quarter, while rental income for the group increased by S$1.3m (up 2.9%) to S$48.2 due to higher rental rates achieved at the Paragon. We believe that the persistent trend of falling circulation and advertisement revenues point to increasing uncertainties in SPH's core newspapers and magazines business, and would put pressure on overall operating margins over the mid to long term. However, an attractive dividend yield at 5.8% likely points to limited price downside at this juncture. Maintain HOLD with an unchanged fair value estimate of S$4.05. We would turn buyer around S$3.90 levels. (Eli Lee) CapitaMalls Asia: Retail land site acquisition in Wuhan, China Summary: CapitaMalls Asia (CMA) announced this morning that it has been awarded a retail mall land site in Wuhan, China for RMB660m (S$128m) or RMB2,700 per sqm. It is located at the junction of Jiefang Avenue and Gutian Second Road, and will be the group's fourth mall in Wuhan. The site area is 70,400 sqm and the envisioned development would consists of a six-storey shopping mall with two office towers to open in 2015. Total GFA (excluding car-park) is estimated at 240k sqm (160k sqm retail, and 80k sqm office). The total development cost for the project is ~RMB 2,800m (S$543m) or RMB 12,000 per sqm. We would speak further with management regarding this acquisition this morning and, in the meantime, maintain BUY but our fair value estimate of S$2.16 is under review. (Eli Lee) Ascendas REIT: No surprises from 3QFY13 earnings Summary: Ascendas REIT (A-REIT) released its 3QFY13 results this morning. NPI rose by 11.5% YoY to S$104.7m while distributable income increased by 13.5% to S$81.1m. DPU for the quarter came in at 3.62 S cents, up 4.0%. This brings the 9MFY13 DPU to 10.68 S cents, forming 76% of both our and consensus full-year DPU projection. A-REIT reiterated that it expects to maintain a stable performance for FY13, barring any unforeseen event and deterioration of the economic environment. We note that A-REIT only has ~2.1% of its revenue due for renewal for the remaining of its financial year and has a weighted average lease to expiry (WALE) of 3.8 years. We will be incorporating the results into our model. In the meanwhile, we place our Hold rating and S$2.43 fair value under review. (Kevin Tan) Lian Beng Group: 1HFY13 results below expectations Summary: Lian Beng Group's net profit for 1HFY13 (ending 30 Nov 2012) was below our expectations, falling 36.2% to S$19.2m (37% of our FY13 forecast). The drop in profit was mainly due to the absence of a S$7.9m one-time gain in 1HFY12 on the sale of an investment property. Revenue was broadly in line with our expectations, declining 1.2% to S$234.9m (48% of our FY13 forecast), due mainly to lower revenue recognised from property development. The order book for the group's main construction business (73% of 1HFY13 revenue) stood at S$547m at 30 Nov, with orders stretching through FY15. Its 55%-owned M Space industrial development project at Mandai Estate has been fully sold but the revenue and profit will only be recognised at the TOP date, expected in Sep 2013 (FY14). We are keeping Lian Beng UNDER REVIEW pending a change in analyst. (Research Team)

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NEWS HEADLINES - US stocks ended mixed on Mon, with major indices weighed down by Apple Inc shares after reports that the company had cut iPhone production plans because of lower-than-expected sales. The Dow rose 0.1% to 13,507.32, the S&P 500 index fell 0.1% to 1,470.68 and the Nasdaq ended 0.3% lower at 3,117.50. - Singapore's productivity growth target of 2-3% a year this decade is challenging, but not overly ambitious, Trade and Industry Minister Lim Hng Kiang said. - Sin Heng Heavy Machinery has incorporated a heavy machinery leasing joint venture in Myanmar in a bid to secure a foothold in the country's potentially lucrative infrastructure market. - Renewable Energy Asia Group plans to build a 20-megawatt solar farm in China's Gansu province at an estimated cost of CNY226m, financed via internal resources and borrowings. - Miyoshi Precision posted a 1QFY13 net loss of S$0.7m, narrower than the S$3.4m net loss a year ago, as revenue more than doubled to S$54m, from S$22m.