SG: MARKET PULSE: Keppel Corp, CCT, MLT (18 Oct 2013)

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 12.87

Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.61

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.15

MARKET PULSE: Keppel Corp, CCT, MLT

18 Oct 2013

KEY IDEA Keppel Corporation: O&M margin continues to rise Keppel Corporation (KEP) reported a 8.4% YoY fall in revenue to S$2.95b but saw a 32.1% increase in net profit to S$457.6m in 3Q13, such that 9M13 net profit accounted for 77% of our full year estimates. Stripping out one-off items, we estimate recurring net profit at S$396m, in line with expectations. Operating margin in the O&M segment was strong at 16.5% in 3Q13, much higher than 2Q13's 14.2%. Order flow YTD has also been healthy, with KEP securing about S$5b new orders so far vs our full year estimate of S$6b. The net order book stood at a record S$13.6b as at end Sep. We continue to see good prospects in the O&M sector with the healthy rig demand, and expect the group to continue with its Near Market, Near Customer strategy. Maintain BUY with S$12.87 fair value estimate. (Low Pei Han) CapitaCommercial Trust: Average portfolio rent continues uptrend CapitaCommercial Trust (CCT) reported 3Q13 distributable income of S$58.8m - 1.6% higher YoY. This cumulates to a 9M13 distributable income of S$174.4m, up 2.2% YoY, which is within expectations and make up 75.9% of our FY13 forecast. 3Q13 DPU is 2.04 S-cents which translates to a 5.7% distribution yield based on the last closing price of S$1.42. The growth in 3Q13 distributable income was mainly due to lower interest expenses and the distribution of S$1.7m in tax-exempt distributable income from Quill Capita Trust, which offset the impact from the loss of income support from One George St. Portfolio occupancy edged up to 97.6% as at end 3Q13, versus 95.8% in the previous quarter. In addition, as a result of continued rental reversions, CCT's average committed office portfolio rentals increased to S$8.03psf from S$7.96psf. We would speak further with management regarding these results and, in the meantime, maintainBUY with our fair value estimate of S$1.61 under review. (Eli Lee) Mapletree Logistics Trust: Delivering steady growth Mapletree Logistics Trust (MLT) reported a 1.3% YoY drop in 2QFY14 NPI to S$66.6m, as its Japan portfolio saw lower translated income on weaker JPY. Stripping out the forex impact, NPI would have increased by 3.4% due to positive rental reversions and contributions from its past three acquisitions. Total amount distributable to unitholders grew at a faster pace of 7.5% to S$44.5m, as MLT substantially hedged its income streams from Japan, benefitted from lower financing costs, and distributed S$0.6m in divestment gains from 30 Woodlands Loop. For the quarter, DPU came in at 1.82 S cents, representing a 6.4% growth YoY. We deem the results to be in line with our expectations, as 1HFY14 DPU of 3.62 S cents have met 49.9% of our full-year DPU forecasts (consensus: 51.0%). Looking ahead, MLT reiterated that it will continue to optimize the portfolio yield through repositioning, enhancement and redevelopment opportunities. We will be attending MLT's analyst briefing later in the morning. For now, we put our HOLD rating and S$1.15 fair value estimate under review. (Kevin Tan)

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

NEWS HEADLINES - US stocks ended mostly higher on Thu, lifting the S&P 500 to a record finish, as Wall Street turned from the latest fiscal drama on Capitol Hill to corporate earnings. - Singapore's non-oil domestic exports fell YoY for an eighth consecutive month in Sep, though the contraction was narrower than market forecasts. - SGX said its 1QFY14 earnings rose 24% as revenue from securities and derivatives trading grew. - Qian Hu Corporation reported a net profit of S$88k for its 3Q13, reversing from a S$10.1m loss the same period a year ago caused by the disposal of its Malaysian subsidiary. - OUE Commercial Trust, a property trust controlled by OUE Ltd, will buy an office and shopping complex in Shanghai ahead of a listing that is likely to take place early next year. - A subsidiary of Cosco Shipyard Group has secured two contracts worth US$233.31m. - ISDN Holdings is embarking on a round of financing that will see it raise S$100m to S$150m via convertible bonds.

SG: MARKET PULSE: CMT, MLT, Suntec REIT, Raffles Medical (22 Jul 2013)

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST

Research House: OCBC

Price Call: BUY

Target Price: 2.35

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.15

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

Research House: OCBC

Price Call: BUY

Target Price: 1.85

Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD

Research House: OCBC

Price Call: BUY

Target Price: 3.42

MARKET PULSE: CMT, MLT, Suntec REIT, Raffles Medical

22 Jul 2013

KEY IDEA CapitaMall Trust: Another promising quarter CapitaMall Trust (CMT) reported DPU of 2.53 S cents, up 6.3% YoY. Together with 1Q DPU of 2.46 S cents, 1H13 DPU totaled 4.99 S cents (+6.6%), forming 50.9% of FY13F DPU. This is above our expectations given that a total of S$12.3m or c.0.36 S cents retained over 1H is available for distribution in 2H13. As at 30 Jun, CMT's portfolio occupancy stood at 99.1%, up 0.9ppt QoQ, while positive rental reversion of 6.4% achieved in 1H was slightly higher than 1Q's growth of 6.2%. CMT's financial position also improved during the quarter, with gearing ratio down to 34.9% from 35.2% in 1Q. On 2 Jul, CMT redeemed all its outstanding convertible bonds due 2013, thereby fully addressing its refinancing needs for 2013. All 14 properties held directly by CMT, we note, are also unencumbered as a result. We now update our model to incorporate the better results and higher risk free rate assumptions. Consequently, our fair value eases from S$2.43 to S$2.35. However, given the strong upside potential, we maintain BUY on CMT. (Kevin Tan) MORE REPORTS Mapletree Logistics Trust: Strength despite uncertain backdrop Mapletree Logistics Trust (MLT) reported 1QFY14 DPU of 1.80 S cents, up 5.9% YoY. Stripping out divestment gain from 30 Woodlands Loop, DPU would be up 4.7%. The results were in line with expectations, as 1Q DPU have met 24.8%/25.4% of our/consensus full-year DPU projections. Overall occupancy stood at 98.2%, largely stable from 98.5% seen in previous quarter. In addition, positive rental reversion of 17% was achieved. This is higher than prior quarter's growth of 14%, although MLT maintains its view that the rate is set to moderate going forward. MLT also updated that its redevelopment project at 21 Benoi Sector in Singapore is on track for completion in 3QFY14, and that the property is currently 94% pre-leased. In the coming quarter, The Box Centre in Korea (acquired in Jul at NPI yield of 8.4%) will start contributing to MLT's topline. We are keeping our forecasts intact for now as the results were within expectations. Maintain HOLD with an unchanged fair value of S$1.15 on MLT. (Kevin Tan) Suntec REIT: Recovery possibly in sight Suntec REIT's 2Q13 DPU was up 0.9% QoQ (-4.7% YoY) to 2.249 S cents, helped by a S$7.8m capital distribution from Chijmes sale proceeds. For 1H13, DPU amounted to 4.477 S cents, down 7.0% YoY and 4.3% HoH, and formed 48.1% of our full-year DPU forecasts. This is broadly in line with our expectations, as Suntec REIT's financial performance is likely to improve going forward now that the Phase 1 space has become operational in Jun. For the first time, Suntec REIT shared that SCM Phase 1 has achieved a passing rent of S$13.09 psf pm. This, we note, is higher than the rates of S$11.31 secured at the rest of SCM and S$12.59 projected for the AEI project. Committed occupancy at SCM Phase 1 now stands at 99.6%, while pre-commitment at Phase 2 has risen from 53.0% in 1Q to 70.1%. We tweak our model to incorporate the results and higher market risk free rates. While our fair value drops to S$1.85 from S$2.16, we view that current valuations are compelling. Maintain BUY on Suntec REIT. (Kevin Tan) Raffles Medical Group: 2Q13 results in-line with expectations Raffles Medical Group (RMG) reported its 2Q13 results this morning which were within our expectations. Revenue rose 12.9% YoY and 7.1% QoQ to S$86.8m. PATMI was up 15.9% YoY and 6.8% QoQ to S$14.4m. Growth during the quarter was driven by higher patient acuity and an increased depth and breadth of medical services on offer. Both RMG's core divisions contributed to its topline increase, with its Hospital Services and Healthcare Services segments growing 16.8% and 6.5% YoY, respectively. For 1H13, revenue increased 12.1% YoY to S$167.9m, forming 48.3% of our full-year estimates; while PATMI jumped 16.0% to S$27.9m, or 45.9% of our FY13 forecast. This is unsurprising, as 2H is seasonally a much stronger half for RMG, and we expect this trend to be maintained this year. An interim dividend of 1 S cent/share was declared (payable on 29 Aug 2013), similar to 2Q12 and our forecast. We will provide more details after the analyst briefing. We maintain our BUY rating and S$3.42 fair value estimate (29x blended FY13/14F). (Wong Teck Ching Andy)

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

NEWS HEADLINES - The S&P 500 index climbed slightly to end at another all-time high on Friday. The technology sector weighed on the DJIA and the Nasdaq after poor earnings from Advanced Micro Devices Inc. and Microsoft Corp. - TEE Land has entered into an MOU to jointly develop, build and operate a series of "Boutique" Industrial Estates in Thailand. - Perennial China Retail Trust intends to issue S$50.0m 5.25% fixed rate notes due 2016. - SGX's head of listings says that the IPO pipeline is healthy; there were 11 listings in 1H13. - Blumont Group announced that it is likely to report a loss for 2Q13. - Linair Technologies expects to report a consolidated loss for 1HFY13 due to lower margins for its engineering business, impairment of receivables and lower sales for its duct business.

SG: MARKET PULSE: Kep Corp, CRCT, CMT, MLT (19 Jul 2013)

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 12.53

Stock Name: CapitaRChina
Company Name: CAPITARETAIL CHINA TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.58

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST

Research House: OCBC

Price Call: BUY

Target Price: 2.43

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.15

MARKET PULSE: Kep Corp, CRCT, CMT, MLT

19 Jul 2013

KEY IDEA Keppel Corporation: Group CEO and O&M CEO to retire in early 2014 Keppel Corporation (KEP) reported a 11.7% YoY decrease in revenue to S$3.08b and a 33.4% drop in net profit to S$346.8m in 2Q13. However, excluding the lumpy profits from the sale of Reflections at Keppel Bay and the one-time gain from sale of investment shares, net profit in 1H13 was in line with last year's results, within our expectations. Operating margin in the O&M segment continued to hold up. The group CEO as well as the CEO of Keppel O&M will be retiring early next year and successors have been identified. An interim cash dividend and in-specie distribution of Keppel REIT units brings the total interim distribution to S$0.208/share. Maintain BUY with a slightly lower fair value estimate of S$12.53 (prev. S$12.68). (Low Pei Han) MORE REPORTS CapitaRetail China Trust: Improved debt profile in 2Q13 CRCT's 2Q13 results were in line with ours and the street's expectations. Net property income rose by 6.0% to S$26.4m and income available for distribution was 7.5% higher at S$17.9m. NPI would have grown 9.5% YoY excluding CapitaMall Minzhongleyuan, which is undergoing AEI. CRCT has refinanced the S$150.5m due in June 2013 and significantly improved the average term to maturity of its debt to 2.52 years as at 30 June from 1.30 years as at 31 March. The fixed rate proportion of CRCT's debt is 78%. Apart from the CapitaMall Anzhen unsecured onshore loan maturing next year, all other loans are offshore, and the average cost of debt for 2Q13 was at 2.58%. Gearing stands at 23.5% and all assets are unencumbered. We maintain our BUY rating and fair value of S$1.58. (Sarah Ong) CapitaMall Trust: Robust growth in 2Q13 CapitaMall Trust (CMT) released its 2Q13 results this morning. NPI grew by 12.2% YoY to S$125.6m while distributable income to unitholders rose by 10.2% to S$87.7m. The completed asset enhancement works at JCube, Bugis+ and The Atrium@Orchard last year, together with the rental rates achieved from the portfolio's new and renewed leases, were the key drivers for the quarter. DPU was up 6.3% YoY to 2.53 S cents, and was consistent with our expectations given that 1H13 DPU of 4.99 S cents formed 50.9% of FY13F DPU. As at 30 Jun, CMT's portfolio occupancy stood at 99.1%, representing an improvement from 1Q occupancy of 98.3%. In addition, positive rental reversion of 6.4% was also slightly higher than last quarter's reversion of 6.2%. We will be attending CMT's analyst briefing later in the morning. For now, we maintain BUY on CMT but put our fair value of S$2.43 under review. (Kevin Tan) Mapletree Logistics Trust: 1QFY14 DPU gained 5.9% YoY Mapletree Logistics Trust (MLT) reported 1QFY14 gross revenue of S$75.4m and NPI of S$65.3m, down 2% and 3% respectively. The decline was mainly due to a weaker JPY against the SGD. Excluding the forex impact, gross revenue and NPI would have increased by 3% and 2%, respectively. The impact of the depreciating JPY on distributable income was mitigated by currency hedges. During the quarter, MLT also benefitted from lower borrowing costs and a partial distribution of the net gain from the divestment of 30 Woodlands Loop. As a result, amount distributable to unitholders rose 6.9% YoY to S$44.0m while DPU grew 5.9% to 1.80 S cents. Stripping out the divestment gains, DPU would be up 4.7% YoY. The results were in line with expectations, as 1Q DPU have met 24.8% and 25.4% of our and consensus full-year DPU projections. We will be attending the analyst briefing later this morning. In the meanwhile, we keep our HOLDrating but place our S$1.15 fair value under review. (Kevin Tan)

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

NEWS HEADLINES - Singapore's office rents are expected to further improve at the end of 2014 after a "modest" rebound that started in the second quarter of this year, according to Lynette Leong, CEO of the manager for CapitaCommercial Trust. - UPP Holdings has announced a joint-venture with a Burmese industrial development company to develop an industrial park and jetty port in the Mandalay region of Myanmar. - Global Logistic Properties leases 24,000 sqm of space to one of the largest hypermarket operator in China. - Hoe Leong Corp. has announced that its associate company, Semua Shipping, has been awarded two 3 years charter contracts from Shell Malaysia Trading Sdn Bhd. - Oxley Holdings has inked a sale and purchase agreement for 10% of GD Capital Pte Ltd for S$7.3m, with the intent to be involved in development projects in an economic and technical development zone in China's Anhui province.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED

Research House: Nomura

Price Call: BUY

Target Price: 2.30

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.15

Market Compass

03 July 2013~ Good Morning Singapore!

Singapore Idea Snippets:

03 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 :So many people try to grow up too fast, and it's not fun! You should stay a kid as long as possible! - VANESSA HUDGENS Singapore: The Day Ahead SINGAPORE DAYBOOK:Singapore's Temasek faces key tests over China banks [SINGAPORE] Singapore's sovereign investor Temasek Holdings Pte Ltd is coming under pressure to review its large exposure to Chinese banks as the world's second biggest economy is on track for its slowest growth in more than 20 years. The city-state's AAA-rated wealth fund has poured billions of dollars into the biggest Chinese banks over the past few years including about US$2.4 billion in the Industrial and Commercial Bank of China since 2012 alone. But Chinese banks now face a difficult outlook due to credit tightening and bad loans. Banks suffered an unprecedented cash crunch last month after the Chinese central bank allowed rates to shoot to record highs to punish banks for making risky loans, and to force them to curtail dodgy lending. The state investor will shed more light on its China strategy when it presents its annual report for the year ended March later this week. (Source: The Business Times) MARKET SCOOP GLP leases 23,000 sqm to Lefeng ICPAS now known as ISCA Property love affair drives up debt levels Transcu, SingLand unit agree to delay judgment debt, explore options FEOrchardplots move into Australia UBSopens vault, joins gold rush in Singapore Mixed showing for China's Asean infrastructure fund (Source: The Business Times) NOMURA Securities says... OLAM INTERNATIONAL | BUY | TP: S$2.30 In order to enhance stakeholder communication, Olam kick-started its efforts with an Investor day in Singapore (27 June, 2013) focussing on its Edible nuts, spices & beans and Spices & Vegetable Ingredients (SVI) segments Most of the global Agri players don't participate in niche segments such as edible nuts and spices, giving Olam an opportunity to take advantage of its global, value chain presence compared to its mostly local competition Edible-nuts is a US$34bn market (Peanut: 24%, Almond: 18%, Walnut: 15% & Cashew: 14%) and Olam has a stronghold with its leadership in cashews, is the #1 peanut blancher, the #2 almond grower and a top-3 Hazelnut supplier Olam is present in 80% of the producing countries and in all the major consumer markets The company is the largest supplier of dehydrated onion, garlic, capsicum, black pepper and organic tomatoes The global spices/tomatoes market is US$10bn/US$4bn, respectively, growing at a rate of 2-3% in developed markets (~5-7% in rest of the world) Olam currently has 32%/14% and 12% share of global onion/garlic and pepper markets, respectively The edible nuts, spices and beans segment has contributed ~25-30% of Olam's overall net contribution over the past five years (~15% of Olam's revenue and ~29% of Olam's net contribution in FY12) and thus is a key driver of its profitability The segment has seen significant growth in the recent past (three-year revenue/net contribution CAGRs at 29%/36% respectively) driven by acquisitions in this space Olam's key acquisitions in this segment include - Key Foods (2007), Universal Blanchers (2007), De Francesco & Sons (2008), IMC (2009), SK Foods (2009), Timbercorp (2009) and Gilroy (2010) We expect three-year CAGRs of 7%/11% for revenues/net contribution for the segment going forward (without considering any further acquisitions) A key profit driver would be maturing almond yields and new plantations and processing facility in California and Australia, respectively DMG OSK Securities says ... EZION HOLDINGS | BUY | TP: S$3.00 As Ezion's share price has fallen 14% since its recent peak, we see this as an opportunity to accumulate We believe concerns over the impact of rising interest rates on the Group is overdone Increasing awareness of its liftboat capabilities could herald in more contract awards, leading to more EPS upgrades for Ezion We estimate that net gearing will rise to 1.14x by end-FY13 However, we are not concerned as the borrowings are backed by steady cash inflow of ~USD1.6bn from its liftboat and service rig chartering business YTD 2013, Ezion has secured USD445m new charters vs USD1.12bn in 2012 Even in a scenario of zero new charters for the rest of 2013, we see little downside risk to our earnings projections as we have not factored in new charters apart from the contracts already announced We are projecting FY13/14/15F net profit of USD117m/USD200m/USD243m, primarily driven by charter contracts secured in the past three years Based on the current pipeline of contracts, Ezion's fleet is set to expand from 15 units in 1H13 to 26 units by 1H2015 Based on our analysis, Ezion can undertake capex of USD100m in FY14 and USD500m in FY15, assuming no fresh equity raising and renewal of the perpetual securities We forecast that the new investments can deliver up to USD65m net profit, implying potential FY15F EPS revision of up to 28% Maintain BUY with a TP of SGD3.00, based on 16x blended FY13/14F EPS Key risks are charter renewals and lower level of LNG activities in Australia OCBC Securities says... MAPLETREE LOGISTICS TRUST | HOLD | TP: S$1.15 Mapletree Logistics Trust (MLT) announced that Menlo Worldwide Logistics, the subsidiary of NYSE-listed Con-way Inc, has signed a binding commitment to lease 48,700sqm at MLT's Mapletree Benoi Logistics Hub (MBLH) for a period of 10 years This agreement marks the latest expansion by Menlo in Singapore and lifts Menlo as MLT's largest tenant (contributing 3.6% of MLT's enlarged monthly gross revenue) Together with Menlo's commitment which accounts for 55% of MBLH's NLA, we understand the property is now 75% preleased, with the balance in the advanced stage of negotiation MBLH is MLT's first redevelopment project in Singapore Formerly known as 21/23 Benoi Sector, the property commenced the refurbishment in 2011 and is scheduled for completion in 4Q13 It is strategically located within the Jurong Industrial Estate and is in close proximity to Jurong Port and easily accessible via expressways When completed, MBLH will be transformed into a modern five-storey ramp-up warehouse with significantly enhanced features such as floor loading capacity of up to 40kN/sqm and a clear height of up to 12m Total GFA is expected to increase by four folds from 22,500sqm to 92,500sqm, based on an increased plot ratio from 1.4 to 2.5 We are positive on this development as it reflects continued healthy leasing demand and strong interest from major third-party logistics service providers Judging from the strong pre-commitment levels, we believe that MLT will be able to meet its estimated yield-on-cost of 8-9% (development cost of ~S$128m) In addition, we expect the long lease to further enhance MLT's already resilient lease structure We make no change to our forecasts as we have previously factored in the redevelopment project MLT is currently offering a 6.5% current yield, which is relatively attractive in our view However, as the stock appears to be fairly priced when compared to our fair value of S$1.15, we maintain HOLD on MLT

SG: MARKET PULSE: Mapletree Log, Vard (2 Jul 2013)

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.15

Stock Name: Vard Holdings
Company Name: VARD HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.93

MARKET PULSE: Mapletree Log, Vard

2 Jul 2013

KEY IDEA Mapletree Logistics Trust: Strong take-up rates at MBLH Mapletree Logistics Trust (MLT) announced that Menlo Worldwide Logistics has signed a binding commitment to lease 48,700sqm at MLT's Mapletree Benoi Logistics Hub (MBLH) for a period of 10 years. Together with Menlo's commitment which accounts for 55% of MBLH's NLA, we understand the property is now 75% pre-leased, with the balance in the advanced stage of negotiation. We are positive on this development as it reflects continued healthy leasing demand and strong interest from major third-party logistics service providers. Judging from the strong pre-commitment levels, we believe that MLT will be able to meet its estimated yield-on-cost of 8-9%. In addition, we expect the long lease to further enhance MLT's already resilient lease structure. However, as we have previously factored in the redevelopment project, we make no change to our forecasts. We maintain HOLD on MLT with an unchanged fair value of S$1.15. (Kevin Tan) MORE REPORTS Vard Holdings: Lower profit guidance Vard Holdings warned that its 2Q2013 financial results (due 11/7/2013) are likely to be below current consensus estimates due to difficulties in its operations in Brazil. After a recent assessment, management found further delays, cost over-runs at its Niteroi yard due to lower-than-expected productivity, additional costs for outsourcing and higher start-up costs at the Promar yard. This comes as a surprise as the group had previously guided that its Brazil operations are coming under control and would stabilize by year-end, suggesting that the situation is more fluid than initially thought. In view of the poor earnings visibility, we switched our valuation methodology to PBR. We also cut our FY13F/14F net profit estimates by 20-25%. Downgrade to HOLD with lower FV estimate of S$0.93 (previously S$1.52) using 1.5x PBR (2 std dev below). (Chia Jiunyang)

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

NEWS HEADLINES - Equity futures in Japan and Australia rose, following a rebound in US stocks on hints of improving manufacturing outlook for some of the world's biggest economies. - OKP Holdings says gross order book currently amounts to S$415.2m after it has secured an S$6.7m contract by the national water agency to carry out improvement works to Stamford Canal from Napier Road to Marina Reservoir. - CNA Group has announced and inked a Memorandum of Understanding (MOU) with TAMA Home to develop homes for the Japanese community in Thailand. - ISDN Holdings Limited has, through its 80 per cent ownership of PT Potensia Tomini Energi, been invited by the Governor of Central Sulawesi, Indonesia to develop a 126 MW hydropower plant at the Laa River in Central Sulawesi, Indonesia.

SG: MARKET PULSE: Hospitality, MLT, CapitaLand (21 Jun 2013)

Stock Name: GP Hotels
Company Name: GLOBAL PREMIUM HOTELS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.33

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.15

Stock Name: Capitaland
Company Name: CAPITALAND LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 4.29

MARKET PULSE: Hospitality, MLT, CapitaLand

21 Jun 2013

KEY IDEA Hospitality Sector: Hazy days While visitor arrivals increased by 6.4% in 1Q13, gross lettings for 1Q13 grew by only ~2.8% to 2.8m room nights. This means that on a per capita basis, visitor arrivals are converting into fewer room nights, continuing a trend we note for 2012. With regard to the haze, we understand from an industry source that hotel bookings are not being negatively affected just yet. However, we think a blip in hotel performance through 3Q13 is likely given that the haze could last at least several weeks. Keeping in mind the mild oversupply situation for hotels we see building up, we remain NEUTRAL on the hospitality sector. We prefer Global Premium Hotels [BUY, FV: S$0.33], a longer-term asset value play in the Economy and Mid-tier space. (Sarah Ong) MORE REPORTS Mapletree Logistics Trust: Scaling up presence in Korea Mapletree Logistics Trust (MLT) has entered into a sale and purchase agreement with supply chain management company, Oakline Co. Ltd, for the acquisition of The Box Centre in South Korea. Oakline will lease back the property for a period of six years with built-in rental escalation from second year onwards. At a purchase consideration of KRW28.75b (~S$32.0m), the property is expected to provide an initial NPI yield of 8.4%. Management expects to fund the acquisition fully by debt, which is expected to increase its aggregate leverage marginally from 34.1% as at 31 Mar to 34.6%. This is likely to add ~0.03 S cents to FY14 DPU, based on our projections. We now factor in the acquisition into our forecasts, with the assumption that it will be completed in Jul. However, we reduce our fair value from S$1.34 to S$1.15 on higher cost of equity to reflect a higher risk-free rate, higher beta and reduced market risk appetite for interest-rate sensitive stocks. We maintain HOLD on MLT due to valuation grounds. (Kevin Tan) CapitaLand Limited: Top bid for Coronation site Yesterday evening, CapitaLand (CAPL) put in the top bid of S$366 million for a 99-year leasehold landed residential site at Coronation Road. The 37,441 sqm site is located within an established landed housing estate and enjoys good accessibility to Bukit Timah Rd and Pan Island Expressway. The GLS tender attracted 12 bids and CAPL's top bid was 17% higher than the second highest bidder - signaling the group's confidence in this project. We understand CAPL intends to develop a landed project comprising semi-detached and bungalows. We expect selling prices in the range of S$1.6k - S$1.8k psf and the project to accrete 1.3 - 2.2 S-cents to CAPL's RNAV. Pending the award of the site, we would keep our fair value estimate unchanged at S$4.29 (20% discount to RNAV). Maintain BUY. (Eli Lee)

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

NEWS HEADLINES - US stocks tumbled on Thurs, with the S&P 500 suffering its worst session since Nov 2011, hit by fear that the Federal Reserve will scale back its bond buying later this year. - South Korea's Lotte Shopping Co Ltd is looking to raise US$800m to US$1b by listing a REIT in Singapore as early as this year, according to IFR, a Thomson Reuters publication. - China's flash HSBC Purchasing Managers' Index for June dropped to a nine-month low yesterday, pointing to continuing weakness in local and external demand. - Armstrong Industrial Corporation Limited said that it has received a proposal from a consortium involving its major shareholder that may result in the delisting of the company. - Former Novena Holdings CEO Toh Soon Huat is leading a group of 17 investors, including a unit of mainboard-listed Serial System, to pump a total of S$15.04m into Jubilee Industries Holdings. - ISDN Holdings Limited plans to raise up to S$111.6m in gross proceeds from the issue and exercise of warrants. - Stamford Tyres Corporation posted an 18.5% rise in earnings for its full fiscal year ended April 30, boosted by a one-time gain from the sale of its stake in an associate.

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

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.25

Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD

Research House: OCBC

Price Call: HOLD

Target Price: 3.01

MARKET PULSE: Mapletree Logistics Trust, Raffles Medical Group

25 Mar 2013

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

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

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

MARKET PULSE: KepCorp, Mapletree Log, Pacific Andes, Marco Polo Marine (27 Nov 2012)

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 12.49

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.25

Stock Name: Pac Andes
Company Name: PACIFIC ANDES RESOURCES DEVLTD

Research House: OCBC

Price Call: HOLD

Target Price: 0.143

Stock Name: Marco Polo
Company Name: MARCO POLO MARINE LTD.

Research House: OCBC

Price Call: BUY

Target Price: 0.53

MARKET PULSE: KepCorp, Mapletree Log, Pacific Andes, Marco Polo Marine

27 Nov 2012

KEY IDEA Keppel Corporation: Order flows to continue in 2013 In our year-end report on Keppel Corporation (KEP) last year, we highlighted that order flows for jack-up rigs would slow while prospects for semi-submersible rigs look increasingly brighter. The year played out as expected, with the group securing three jack-up rigs and seven semi-sub orders so far this year. This has been a front-end loaded year due to property, while O&M margins continued to normalize. Meanwhile KEP has started to improve the competencies and productivity of its regional satellite yards to meet heavier workload requirements. The group's net order book stood at S$13.1b as at end Sep with deliveries extending to 2019. We roll forward our valuations to FY13 earnings in which we are expecting lower operating margins mainly due to the O&M segment and comparatively lower property earnings contribution; as such, our fair value estimate slips from S$13.34 to S$12.49. Maintain BUY. (Low Pei Han) MORE REPORTS Mapletree Logistics Trust: Increasing presence in China Mapletree Logistics Trust (MLT) recently announced its intention to acquire Mapletree Wuxi Logistics Park in China from its Sponsor. The purchase consideration of RMB116m was at a 2.5% discount to the average valuation of RMB119m by two independent valuers. Management guided that the acquisition is expected to be accretive at the DPU level, with an initial NPI yield of 8.0%. This is higher than the implied yield of 6.0% for MLT's existing China portfolio. Separately, MLT also updated that the divestment of 30 Woodlands Loop in Singapore to Accenovate Engineering Pte Ltd will not proceed. This was because the buyer's application to purchase the property was not approved by JTC Corporation as it did not meet its evaluation criteria. We have earlier assumed the divestment to be completed by Feb 2013, as previously guided by MLT. We now factor the China warehouse acquisition into our forecasts and reverse the divestment of 30 Woodlands Loop as the sale will not be completed. Accordingly, our fair value inches up slightly from S$1.24 to S$1.25. We maintain BUYon MLT. (Kevin Tan) Pacific Andes: Below expectations 4Q Pacific Andes Resources Development (PARD) delivered a disappointing set of 4Q results, dragged down by lower earnings from China Fishery Group (CFG). Net earnings plunged to HK$8.9m, down from HK$146.1m in 3Q12. As a result of this, dividend per share was slashed from 1.08 S cents (which traditionally accounted for about one-third of its earnings) to 0.3 S cent (14.5% of earnings). Outlook is muted, and management is exploring new growth areas. While the Supply Chain Management (SCM) operation is still relative stable, the fishing operation appears to be under pressure. Overall, in view of the weaker outlook, we have cut our estimates for FY13 from HK$839m to HK$638m. In addition, we have also dropped our DPS projection to be the same as this year's payout at 0.3 S cent. Using the same valuation peg, but moving to blended FY13/14 earnings, we dropped our fair value estimate from 17.8 cents to 14.3 cents. Downgrade to HOLD. (Carmen Lee)

Marco Polo Marine: 4QFY12 results in line with expectations Marco Polo Marine (MPM) reported a 3% YoY fall in revenue to S$19.8m and a 10% increase in net profit to S$3.9m in 4Q12, bringing full year revenue and net profit to S$89.8m and S$21.3m, respectively. Results were in line with our expectations; full year net profit was exactly what we had forecasted earlier. Gross profit margin was 32.5% in FY12 vs 28.1% in FY11, mainly due to ship repair which performed well in the year. The group continues to receive enquiries for its ship building, repair and conversion services. Pending a briefing later in the afternoon, we maintain our BUY rating but put our fair value estimate of S$0.53 under review. (Low Pei Han) For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - US stocks finished mostly lower on Monday, with the S&P 500 Index snapping its winning streak, as lawmakers prepared to debate the fiscal cliff. The Dow fell 0.3% to 12,967.37, while the S&P 500 Index slid 0.2% to 1,406.29. Only the Nasdaq ended higher, rising 0.3% to 2,976.78. - Straits Trading Co has offered to buy 23.6% of WBL Corp for S$218m, raising its stake in the firm to 40.6%. If successful, the deal would trigger a mandatory offer to buy the remaining WBL shares for S$3.41 in cash or 1.07 new Straits Trading shares each. - BRC Asia's FY12 PATMI rose 9% to S$16.5m, on the back of a 37% increase in revenue to S$388m. Sales volume was higher due to buoyant construction activities in Singapore. - Rising manpower costs have hit businesses hard, with construction firms suffering the most, a survey of over 10,000 SMEs in Singapore showed. Overall, 72% of the SMEs polled cited high labour costs as the main reason for their eroding profits. High material costs and rising rental costs were also blamed.

MARKET PULSE: CMT, MLT, Dyna-Mac, Raffles Med, Yoma (22 Oct 2012)

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST

Research House: OCBC

Price Call: BUY

Target Price: 2.38

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.24

Stock Name: Dyna-Mac
Company Name: DYNA-MAC HOLDINGS LTD.

Research House: OCBC

Price Call: BUY

Target Price: 0.57

Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD

Research House: OCBC

Price Call: BUY

Target Price: 2.82

Stock Name: Yoma
Company Name: YOMA STRATEGIC HOLDINGS LTD

Research House: OCBC

Price Call: HOLD

Target Price: 0.51

MARKET PULSE: CMT, MLT, Dyna-Mac, Raffles Med, Yoma

22 Oct 2012

KEY IDEA CapitaMall Trust: Value emerging from strong execution Summary: CapitaMall Trust's (CMT) 3QFY12 results exceeded our expectations. NPI was up 4.0% to S$332.3m whereas DPU was up 0.4% to 7.10 S cents. This forms 77.6% and 76.1% of full-year NPI and DPU projections respectively. CMT's occupancy remained largely stable at 98.4% (98.6% in 2Q), despite a 4.6ppt drop QoQ at IMM building as a result of repositioning of the mall. For YTD, 6.1% positive rental reversions were achieved, largely unchanged from 6.4% seen in 1H. Looking ahead, we believe CMT is likely to sustain its growth profile, given the smooth execution of its AEIs and strong leasing activities. The development of Westgate, of which CMT has 30% stake, is also expected to start contributing to its income by end-2013. We now revise our assumptions to incorporate the better-than-expected results and rental uplift resulting from its AEIs. Rolling our valuations to FY13, our fair value is raised from S$2.04 to S$2.38. Upgrade CMT to BUY from Hold as we see an attractive upside potential. (Kevin Tan) MORE REPORTS Mapletree Logistics Trust: Pursuing growth on all fronts Summary: Mapletree Logistics Trust (MLT) reported 2QFY13 DPU of 1.71 S cents, up 1.2% YoY. This brings the 1HFY13 DPU to 3.41 S cents, forming 48.3%/48.7% of our/consensus full-year DPU projections. Operationally, we note that MLT's portfolio occupancy improved 0.2ppt QoQ to 99.2%, driven by stronger take-up rates in China, Hong Kong and Singapore. Leases renewed/replaced also achieved positive rental reversions of 8% on average. Looking ahead, management expects the overall acquisition activity to moderate, citing competitive cap rates in Singapore and relatively muted growth in Japan. Hence, it intends to turn more aggressive on capital recycling and asset enhancement initiatives (AEIs)/ asset redevelopment. We are currently keeping our forecasts unchanged. However, our fair value is raised to S$1.24 from S$1.19 as we lower MLT's cost of equity to 8.5% from 9.3% to align with the current low interest rate environment. Maintain BUY. (Kevin Tan) Dyna-Mac Holdings: Looking for more projects Summary: Dyna-Mac Holdings Ltd (DMHL) recently completed a placement of up to 139.5m ordinary shares, consisting of (i) 93m new shares issued and (ii) 46.5m vendor shares owned by current CEO Mr. Desmond Lim, at S$0.50 per share. This enlarges DMHL's existing share capital would by about 10%. Mr. Desmond Lim is still the largest shareholder with a 40.8% stake (previously: 49.9%). The net proceeds of S$45.7m from issuance of new shares will be used for working capital purposes. We continue to like DMHL for its prudent management style and its exposure to the FPSO topside market. After adjusting for the new shares, our fair value drops to S$0.57 (previously S$0.62). Maintain BUY. (Chia Jiunyang) Raffles Medical Group: 3Q12 PATMI slightly below expectations Summary: Raffles Medical Group (RMG) reported its 3Q12 results this morning with revenue meeting our expectations but PATMI was slightly below due to higher-than-expected operating expenses. Revenue rose 13.9% YoY and 2.4% QoQ to S$78.7m. PATMI increased 6.6% YoY and 1.2% QoQ to S$12.6m. Growth during the quarter was driven by a higher patient load as RMG continued to expand the depth and breadth of its specialist services. Both RMG's core divisions contributed positively to its topline increase, with its Hospital Services and Healthcare Services segments growing 14.5% and 14.8% YoY, respectively. For 9M12, revenue jumped 14.0% YoY to S$228.6m, forming 73.3% of our full-year estimates; while PATMI increased 8.0% to S$36.6m, or 68.0% of our FY12 forecast. We note that the fourth quarter is typically RMG's strongest quarter and we expect this trend to continue in FY12. RMG also maintained its strong financial position, improving its net cash position from S$63.9m in 2Q12 to S$68.7m in 3Q12. We will provide more details after the analyst briefing later. For now, we place our Buy rating and S$2.82 fair value estimate under review. (Wong Teck Ching Andy) Yoma Strategic Holdings: Hit by one-time charges Summary: Yoma Strategic Holdings (Yoma) reported a negative 2Q13 PATMI of -S$4.2m, mostly due to a S$5.4m one-time non-cash share-based payment to the CEO, partially offset by increased sales of residences and land development rights. Accounting for one-time non-operating expenses, net operating profit would have been S$1.8m - up 33% YoY - which we judge to be mostly in line with expectations. 2Q13 revenue was S$11.6m, increasing 59% YoY mainly due to stronger sales at Pun Hlaing Golf Estate and Star City. Management reports that, since Star City's acquisition, 249 units out of a total of 528 units in building 3 & 4 have been sold as of 30 Sep 2012. We would speak with management further regarding these results and, in the meantime, maintain HOLDwith an unchanged fair value estimate of S$0.51. (Eli Lee)

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

NEWS HEADLINES - Technology stocks led the fall in the US market on Friday. The Dow fell 1.5%, the S&P 500 Index declined 1.7%, and the Nasdaq dropped 2.2%. Microsoft, Google, IBM and Intel all posted poor quarterly results earlier in the week. - UPP Holdings, in collaboration with Myan Shwe Pyi Tractors Limited, has signed a memorandum of understanding with the Department of Electric Power of Myanmar, for the establishment of the 50 megawatt class new gas generating power plant project in Yangon. - Hi-P International expects lower revenue and profit for FY2012 as compared with FY2011. - Berger International posted 1H13 PATMI of S$1.636m, up 93% YoY. Revenue climbed 6% YoY to S$59.3m.

Mapletree Logistics' positives priced in: CIMB

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: CIMB

Price Call: HOLD

Target Price: 1.25

CIMB downgrades Mapletree Logistics Trust to Neutral from Outperform on valuations, viewing the positives as priced in. it notes fiscal-2Q12 DPU met its estimates, coming it at 24% of its FY13 forecast.

“2Q displayed sustained stability, a hallmark of MLT’s long-tenured logistics portfolio. But we believe the current environment of elevated asset values could throw a spanner in the works for MLT’s asset hunt, a key source of growth and share price outperformance.”

It notes MLT has outperformed the STI sharply this year, viewing its valuation at 1.3X P/BV and 6.0%-6.4% forward yields have priced in its portfolio stability. “While acquisitions will likely be accretive against cheap funding costs, competition and elevated asset values should make attractive finds difficult.”

It raises its target to $1.25 from $1.07 on a lower discount rate of 7.3% from 8.6% previously. The stock is down 0.9% at $1.165, but it remains up more than 37% year-to-date.

Market Pulse: KepCorp, SGX, MLT (19 Oct 2012)

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 13.34

Stock Name: SGX
Company Name: SINGAPORE EXCHANGE LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 6.80

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.19

MARKET PULSE: KepCorp, SGX, MLT

19 Oct 2012

KEY IDEA Keppel Corporation: Continues to see good prospects Keppel Corporation (KEP) reported a 19.1% YoY rise in revenue to S$3.2b but saw a 14.7% drop in net profit to S$346.4m in 3Q12, such that 9M12 net profit accounted for 87% and 88% of ours and the street's full year estimates, respectively. This has been a front-end loaded year as lumpy earnings from the property division boosted net profit in 1H12. O&M margins continued to normalize to 12.9% in 3Q12 but this was still slightly above our expectations. Meanwhile KEP has started to improve the competencies and productivity of its regional satellite yards to meet heavier workload requirements, which we think is a good strategy. After securing S$8.8b of orders in 9M12 (5% higher than in 9M11), the group's net order book stood at S$13.1b as at end Sep with deliveries extending to 2019. Maintain BUY with S$13.34 fair value estimate. (Low Pei Han) MORE REPORTS Singapore Exchange: Continued muted market outlook Singapore Exchange (SGX) delivered 1QFY13 net earnings of S$74.3m which were fairly in line with market expectation. Securities Revenue accounted for 36% while Derivatives Revenue made up another 28% of group revenue. Base dividend payout per quarter of 4 cents will be paid on 5 Nov 2012. SGX continues to work on several new initiatives, but these are fairly long term in nature and we expect minimal financial impact for FY13. We are keeping our FY13 estimates despite it being below market as we see continued softness in the global market, and this will also limit share price upside for the near term. We are maintaining our fair value estimate of $6.80 and HOLD rating. (Carmen Lee) Mapletree Logistics Trust: No surprises in 2QFY13 Mapletree Logistics Trust (MLT) reported NPI of S$67.5m and distributable amount of S$41.4m for 2QFY13, representing a YoY growth of 14.6% and 1.2% respectively. Contributions from its past acquisitions and improved operating metrics were the key drivers for the performance. DPU similarly grew 1.2% YoY to 1.71 S cents. This brings the 1HFY13 DPU to 3.41 S cents, forming 48.3% of our full-year DPU projections. Operationally, we note that MLT's portfolio occupancy improved 0.2ppt QoQ to 99.2%, while leases renewed/replaced achieved positive rental reversions of 8% on average (albeit lower than 10% seen in previous quarter). For the rest of FY13, management expects its portfolio income to remain stable as only 4.2% of its leases by NLA are due for renewal. In addition, MLT introduced the Distribution Reinvestment Plan (DRP), which will be applied to the quarterly distribution. We will be attending the analyst briefing this afternoon to get more insight on MLT's outlook and strategy. For now, we place our Buy rating and S$1.19 fair value UNDER REVIEW. (Kevin Tan)

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

NEWS HEADLINES - US stock indexes fell on Thursday with a rise in jobless claims offsetting upbeat manufacturing data and Google Inc.'s earnings miss. The Dow fell less than 0.1% to end at 13,548.94. The S&P 500 index lost 0.2% to 1,457.34. - Indonesian coal-mining firm Geo Energy Resources' IPO of 289.26m shares at 32.5 S cents was 2.9 times subscribed. Geo Energy is expected to begin trading on the mainboard today. - Second Chance Properties posted net profit of S$30.47m for the 14 months to end-Aug 2012 (FY12) and proposed dividends translating to an annualized yield of ~8%. - Food Junction has issued a profit warning for 3Q12 and FY12. It cites higher pre-operating costs for losses in its restaurant operations. - Interra Resources has received in-principal approval from the Singapore Exchange to transfer its listing from Catalist to the mainboard.

MARKET PULSE: Golden Agri, Mapletree Logistics Trust (04 Oct 2012)

Stock Name: GoldenAgr
Company Name: GOLDEN AGRI-RESOURCES LTD

Research House: OCBC

Price Call: BUY

Target Price: 0.76

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.19

MARKET PULSE: Golden Agri, Mapletree Logistics Trust

04 Oct 2012

KEY IDEA Golden Agri: CPO prices tumbling fast Summary: Golden Agri-Resources (GAR), as the second largest palm oil plantation owner in the world, has undoubtedly been hit by falling CPO prices, which recently tumbled following weaker-than-expected demand from China and the apparent lack of substitution effect for the higher-priced soybean oil. For Oct alone, GAR's share price fell by as much as 4.5%, bringing its YTD decline to 13.1%. Despite the sharp pullback in CPO prices, we believe that GAR should still be able to achieve our US$925/ton target; hence we are keeping our FY12 forecasts unchanged. But we are cutting our CPO target for 2013 to US$750/ton, which in turn pares our revenue and earnings forecasts by 6.7%. While we are maintaining our 12.5x blended FY12/13F EPS peg, our fair value eases from S$0.81 to S$0.76. But we maintain our BUY rating as we believe that the company's longer-term fundamentals remain sound. (Carey Wong) MORE REPORTS Mapletree Logistics Trust: Strong showing to continue Summary: Mapletree Logistics Trust (MLT) announced last week that it has completed the acquisition of Hyundai Logistics Centre in Gyeonggi-do, South Korea for KRW22.5b (~S$24.7m). The date of completion was ahead of our projection as MLT had previously guided that the transaction was targeted to complete by 3QFY13 (Dec quarter). Hence, the property will contribute two quarters to MLT's FY13 income, as opposed to just a quarter in our estimate. For FY13, we remain confident of MLT's financial performance. While management expects business sentiments to stay cautious in light of the slowing growth in Asia and concerns over the Eurozone crisis, we expect MLT to continue to benefit from its recent acquisitions and enhanced operational metrics. We are now making minor adjustments to our FY13 forecasts to incorporate an earlier rental contribution from Hyundai Logistics Centre. However, there is no change to our fair value of S$1.19. Maintain BUY on MLT. (Kevin Tan)

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

NEWS HEADLINES - US stocks rose following upbeat data on private-sector job growth and the services sector. The Dow climbed 0.1% to 13,494.61. The S&P 500 Index rose 0.4% to 1,450.99. - Hewlett-Packard Co. plunged 13% to close at US$14.91 - close to a 10-year low - after the company gave a forecast for the new fiscal year that was lower than expectations. - King Wan Corporation has secured five mechanical and electrical contracts in Singapore with an aggregate contract value of ~S$30.8m since Aug 2012. - Kreuz Holdings is to transfer to the Main Board on 8 Oct. It has also received a mandate from shareholders for the acquisition of a multipurpose subsea dive support and construction vessel. - Scorpio East Holdings has entered into a co-distribution agreement with Cathay-Keris Films Pte Ltd, which is a part of Cathay Organisation.

S-REITs likely to continue outperformance: UOB-KayHian

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

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.67

Stock Name: AscottREIT
Company Name: ASCOTT RESIDENCE TRUST

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.42

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: UOB KayHian

Price Call: BUY

Target Price: 1.21

S-REITs are likely to outperform in the prolonged low-interest rate environment spurred by QE3, UOB KayHian says. While the segment has outperformed the STI year-to-date, “we see potential for further
upside as the trend of yield compression continues.”

It tips Suntec REIT as its top office-segment pick as it fast-tracks asset renovations, rating it Buy with $1.67 target; it notes charts tip the next potential resistance at $1.60, with $1.40 support. Ascott Residence Trust is its hospitality pick for “good all-round performance,”  with 3Q12 earnings likely boosted by higher UK demand during the Olympic Games; it rates ART Buy with a $1.42 target, noting an around 7% dividend yield. Charts tip ART is consolidating for a potential breakout toward $1.40, with $1.20 offering near-term support, it says.

It tips Mapletree Logistics Trust as a steady industrial-segment bet, with a defensive portfolio, long leases and diversification across geographies and customers, while its sponsor continues to build an over-$400 million potential pipeline of assets. It rates MLT Buy with $1.21 target, noting charts indicate it may test $1.30, with support above $1.05.

Suntec rises 0.3% to $1.49, MLT is down at $1.12 and ART gains 0.4% to $1.26.

MARKET PULSE: MLT, Karin (30 Aug 2012)

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.19

Stock Name: Karin
Company Name: KARIN TECHNOLOGY HLDGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.25

MARKET PULSE: MLT, Karin

30 Aug 2012

KEY IDEA Mapletree Logistics Trust: Portfolio optimization via capital recycling Summary: Mapletree Logistics Trust (MLT) announced on 28 Aug that it will acquire Hyundai Logistics Centre in Gyeonggi-do, South Korea for a consideration of ~S$24.6m. Separately, MLT entered into an agreement to divest 30 Woodlands Loop in Singapore for S$15.5m. We understand that the sale proceeds will be redeployed to partially fund the acquisition in South Korea. We view both transactions positively as it clearly reflects MLT's capability to optimize portfolio returns through proactive asset management. The capital recycling initiative and overseas acquisition were also spot on with projections made in our S-REIT sector published a week ago. We now tweak our forecasts to accommodate the two transactions. Our FY13-14F DPUs are raised by 0.3-0.7%, but there is no change to our fair value of S$1.19. Maintain BUY. (Kevin Tan) MORE REPORTS Karin Technology: Good proxy to Apple Summary: Karin Technology (Karin) reported a 35.3% YoY surge in revenue to HK$1,712.9m and a 22.0% jump in PATMI to HK$36.9m for 2HFY12. After adjusting for exceptional items, we estimate that core PATMI would instead have declined 12.1% YoY to HK$21.4m, which was below our expectations. For FY12, revenue of HK$3,232.3m (+49.1%) was 1.8% above our forecast; while estimated core PATMI of HK$46.9m (-7.2%) was 14.1% below our projections. A final dividend of 7.1 HK cents/share was declared, bringing total FY12 dividends to 14.1 HK cents/share, or a yield of ~8.4%. Looking ahead, we believe that Karin's Consumer Electronics Products segment would remain as its main revenue driver given its license to sell the full range of Apple products at its retail stores. We raise our FY13 revenue forecast by 6.9% but lower our core PATMI estimate by 7.6% on lower margin assumptions. Maintain HOLD, with a lower fair value estimate of S$0.25 (previously S$0.265). (Wong Teck Ching Andy)

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

NEWS HEADLINES - US stocks on Wednesday closed slightly up. The Federal Reserve reported gradual economic expansion across its 12 districts. The Dow ended at 13,107.48, less than 0.1% higher. The S&P 500 Index rose 0.1% to 1,410.49. - GuocoLeisure announced FY12 PATMI of US$77.7m, down 3.6%. Revenue had slipped 5.4% to US$369.8m. - GuocoLand's FY12 PATMI of S$63.2m was down 48%. Revenue had declined 1% to 678.5m. - Dukang Distillers' FY12 net profit was RMB218.1m, up 29.8%. Revenue had increased 28.1% to RMB1.827b. - Lum Chang's FY12 PATMI of S$21.0m was up 31% versus restated FY11. Revenue had increased 48% to S$282.9m. - Swee Hong posted FY12 net profit of S$5.48m, down 55.5%. Revenue had increased by 15.2% to S$97.3m. - CFM Holdings reported FY12 PATMI of S$543k, up 33.1%. Revenue had declined by 9.3% to S$47.4m.

MARKET PULSE: MLT, Fortune REIT, OKP, CCT, Raffles Med (23 Jul 2012)

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.19

Stock Name: Fortune Reit HK$
Company Name: FORTUNE REAL ESTATE INV TRUST

Research House: OCBC

Price Call: BUY

Target Price: 5.33

Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.31

Stock Name: OKP
Company Name: OKP HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.53

Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD

Research House: OCBC

Price Call: BUY

Target Price: 2.73

MARKET PULSE: MLT, Fortune REIT, OKP, CCT, Raffles Med

23 Jul 2012

KEY IDEA Mapletree Logistics Trust: Robust 1QFY13 performance Summary: Mapletree Logistics Trust (MLT) delivered DPU of 1.70 S cents for 1QFY13. This is largely in line with both our and consensus expectations, as it formed 24.2% and 24.6% of the respective full-year forecasts. Going forward, MLT expects business sentiments to remain cautious in view of the slowing growth in Asia and concerns over the Eurozone debt crisis. While it is expecting its portfolio assets to stay resilient, management intends to focus on strengthening its fundamentals through active asset and lease management and prudent capital management. We maintain our BUY rating with an unchanged fair value of S$1.19 on MLT. (Kevin Tan) MORE REPORTS Fortune Real Estate Investment Trust: Highest DPU growth in nine years Summary: FRT achieved a record-breaking 1H12, with revenue and net property income climbing by 20.3% and 19.6% YoY to historic highs of HK$537.4m and HK$382.1m respectively. 1H12 DPU rose by 23.6% YoY, the highest growth in FRT's nine-year operating history, to 15.82 HK cents, slightly better than our expectations. The strong results are attributable to FRT's three-pronged growth strategy: active lease management, yield-accretive acquisitions of Provident Square and Belvedere Square in mid-Feb and good returns on AEIs of Fortune City One and Ma On Shan Plaza. We maintain our BUY rating and raise our fair value from HK$5.22 to HK$5.33. (Sarah Ong) CapitaCommercial Trust: Most positives priced in Summary: CapitaCommercial Trust (CCT) reported 2Q12 distributable income of S$58.5m - 7.5% higher YoY. This translates to a DPU of 2.06 S-cents per share which is broadly in line with expectations. 2Q12 revenues came in at S$95.8m - up 5.2% YoY mostly due to revenue contribution by Twenty Anson, higher revenues from Raffles City and HSBC Building, and higher yield protection income for One George Street.Though Grade A office rentals have dipped a further 4-5% in 2Q12, we see short-term vacancy rates likely stabilizing for the remainder of FY12 due to limited CDB additions till 2H13. We continue to like CCT's portfolio of prime office assets, and also note limited lease renewals of only 4.1% of office leases for the rest of FY12. At current price levels, however, we believe most positives are already priced in. Maintain HOLD with a higher fair value estimate of S$1.31, versus S$1.14 previously, due to stronger cap rate assumptions. (Eli Lee) OKP Holdings: Possible delay in new project Summary: OKP Holdings (OKP) reported that its 2Q12 revenue fell 17% YoY to S$23.6m, while PATMI sank 55% to S$3.1m. For the rest of 2012, management guided that revenue recognition is likely to remain slow and gross margin should remain in the range of low twenties. Management also said the fall in revenue is due to slower revenue recognition from some recently awarded projects. While management has not confirmed this, it is likely that the design-and-build project to expand the CTE/TPE/SLE interchange has experienced some execution delays, resulting in the slower recognition of revenue in 2Q12. Despite the delays, we expect the execution of this project to ramp up by the end of this year. Based on our 12-month investment horizon, we maintain our fair value estimate of S$0.53/share and HOLD rating on OKP. (Eric Teo) Raffles Medical Group: 2Q12 PATMI slightly below expectations Summary: Raffles Medical Group (RMG) reported its 2Q12 results this morning with revenue within our expectations but PATMI was slightly below due to higher-than-expected operating expenses. Revenue rose 14.9% YoY and 5.5% QoQ to S$76.9m. PATMI was up 6.8% YoY and 6.9% QoQ to S$12.4m. Growth during the quarter was driven by a higher patient load and patient acuity. Both RMG's core divisions contributed to its topline increase, with its Hospital Services and Healthcare Services segments growing 19.1% and 9.1%, respectively. For 1H12, revenue jumped 14.0% to S$149.9m, forming 48.0% of our full-year estimates; while PATMI increased 8.7% to S$24.0m, or 42.8% of our FY12 forecast. Note that 2H is typically a seasonally stronger half for RMG, and we expect this trend to be maintained in FY12. An interim dividend of 1 S cent/share was declared (payable on 31 Aug 2012), similar to 2Q11 and is in line with our expectations. RMG also continued to generate strong operating cashflows of S$22.4m in 2Q12, as compared to S$9.4m in 2Q11. We will provide more details after the analyst briefing. For now we place our Buy rating and S$2.73 fair value estimate under review. (Wong Teck Ching Andy)

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

NEWS HEADLINES - Spain's debt worries caused US stocks to slide, led by a decline in financial stocks. The Dow and the S&P 500 Index lost 0.9% and 1% respectively. - A subsidiary of AusGroup Limited has formalised a contract with BHP Billiton Iron Ore for the Jimblebar Project, valued at AU$48m for structural, mechanical and piping works for the inflow circuit of the plant. - A subsidiary of Full Apex (Holdings) Ltd has acquired 22% of the total issued share capital of Favour Development Ltd, which is engaged in the manufacture of PET performs and PET resin, at a purchase consideration of HK$90.5m. - SGX Catalist-listed AsiaMedic Limited has entered into a Memorandum of Understanding with Myanmar's Ni Ni Diagnostics And Healthcare to explore the possible establishment of a joint venture in Myanmar. - Mermaid Maritime Public Company Ltd has entered into a share purchase agreement to acquire the remaining equity in Seascape Surveys Pte. Ltd. and Seascape Surveys (Thailand) Ltd.

MARKET PULSE: KepCorp, FCT, Suntec, CCT, MLT, SIAEC (20 Jul 2012)

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 13.34

Stock Name: FrasersCT
Company Name: FRASERS CENTREPOINT TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.89

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

Research House: OCBC

Price Call: HOLD

Target Price: 1.41

Stock Name: CapitaComm
Company Name: CAPITACOMMERCIAL TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.41

Stock Name: MapletreeLog
Company Name: MAPLETREE LOGISTICS TRUST

Research House: OCBC

Price Call: BUY

Target Price: 1.19

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

Research House: OCBC

Price Call: HOLD

Target Price: 4.04

MARKET PULSE: KepCorp, FCT, Suntec, CCT, MLT, SIAEC

20 Jul 2012

KEY IDEA Keppel Corporation: Strong results boosted by property arm Keppel Corporation (KEP) reported a 52.2% YoY rise in revenue to S$3.5b and a 35.4% increase in net profit to S$520.9m in 2Q12, such that 1H12 net profit accounted for 78% and 80% of ours and the street's full year estimates, respectively. Lumpy earnings from the property division boosted net profit, and this is not expected to recur in 2H12. Operating margin in the O&M division continued to normalize to about 12% in the quarter, in line with management's guidance. Meanwhile the group's net order book stands at S$7.6b, with deliveries extending to 2015. KEP remains optimistic about the return of semi-submersible orders, given the tight supply of deepwater rigs. We fine-tune our estimates and update the market values of KEP's listed entities, such that our fair value estimate eases slightly from S$13.38 to S$13.34. In line with our expectations, an interim dividend of S$0.18 has been declared. Maintain BUY. (Low Pei Han) MORE REPORTS Frasers Centrepoint Trust: Strong growth momentum Frasers Centrepoint Trust's (FCT) 3QFY12 DPU of 2.6 S cents (+33.3% YoY) was above our expectations. The strong performance was achieved mainly on the back of a 60.9% NPI growth by Causeway Point (CWP) and S$2.0m NPI contribution from newly-acquired Bedok Point. During the quarter, we note that FCT continued to track positive rental reversions, where rental rates of new leases were 27.2% higher than preceding leases on average (2Q: +11.0%). This reflects continued strong demand for suburban retail space, in our view. We now re-jig our FY12-13 forecasts to reflect the better-than-expected results. This in turn raises our fair value from S$1.74 to S$1.89. Maintain BUY. (Kevin Tan) Suntec REIT: Good news factored in Suntec REIT announced 2QFY12 DPU of 2.361 S cents, down 6.8% YoY and 3.8% QoQ. However, we feel that management has executed well, as this was achieved despite the loss of income from the divestment of Chijmes and commencement of asset enhancement works (AEI) at Suntec City on 1 Jun. Office segment, we note, was the star performer for the quarter, with gross revenue 5.5% higher YoY due to positive rental reversions. Suntec REIT also announced that the Suntec City AEI is now projected to complete by end 2014, earlier than its last guidance for completion in 2015. We now incorporate the stronger performance at Suntec REIT's office portfolio and the revised completion schedule of Suntec City AEI into our model. Maintain HOLD with a revised fair value of S$1.41 (prev: S$1.23) on Suntec REIT. (Kevin Tan) CapitaCommercial Trust: 2Q12 numbers tracking expectations CapitaCommercial Trust (CCT) announced this morning 2Q12 distributable income of S$58.5m, which was 7.5% higher YoY. This translates to a DPU of 2.06 S-cents per share. 2Q12 results were mostly in line with expectations and YTD distributable income now makes up 57% of our full year forecast. 2Q12 revenues came in at S$95.8m - up 5.2% YoY mostly due to revenue contribution by Twenty Anson, higher revenue from Raffles City (in which CCT has a 60% interest) and HSBC Building and higher yield protection income for One George Street. We estimate that Grade A office rentals have dipped a further 4-5% in 2Q12, though vacancy rates are likely to stabilize due to limited completions of major office projects in the CBD till 2H13. We will meet with management later today and, in the meantime, put our Hold rating with a fair value estimate of S$1.41 UNDER REVIEW. (Eli Lee) Mapletree Logistics Trust: Stable 1QFY13 results Mapletree Logistics Trust's (MLT) 1QFY13 DPU of 1.7 S cents (+6.3% YoY) was largely in line with our expectations, meeting 24.2% of our full-year DPU forecasts. The strength came chiefly from its recent acquisitions made in Japan, South Korea and Malaysia. During the quarter, we note that MLT's portfolio continued to enjoy a high occupancy of 99% and positive rental reversions of 10% on average (albeit lower than 12% in the previous quarter). Management also revealed that the rentals and occupancy rates of well-located, quality facilities continue to be supported by firm demand and tight supply. However, in face of the uncertain market condition, MLT intends to focus on strengthening its fundamentals through active asset and lease management and prudent capital management. We will be speaking to MLT later this morning to get more details on its outlook. For now, we place our Buy rating and fair value of S$1.19 under review. (Kevin Tan) SIA Engineering: New S$166m contract from Cebu Air SIA Engineering Co Ltd (SIAEC) yesterday announced it has won a five-year contract worth S$166m from Cebu Air. Under the agreement, SIAEC will provide Cebu Air with a wide range of fleet management and maintenance, repair and overhaul (MRO) services. The contract covers Cebu Air's fleet of A320/A319 aircraft, which will grow to 48 aircraft over the next five years. However, SIAEC added that this transaction is not expected to have a material impact on SIAEC's financial performance in the current financial year. Thus, we maintain our fair value estimate of S$4.04/share and HOLD rating on SIAEC. (Eric Teo)

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

NEWS HEADLINES - U.S. stocks climbed for a third session as better-than-expected earnings from IBM and other companies compensated for weak economic data. The tech-heavy Nasdaq Composite rose 0.8%. Both the Dow and the S&P 500 climbed 0.3%. - A subsidiary of Raffles Education Corp. has agreed to sell off the land use rights to a plot of land located in Langfang Development Zone, Hebei, China, for RMB159.3m (S$31.8m). - Jackspeed Corporation has signed a MOU with two firms (one Chinese and one Thai) to tender for a project to refurbish locomotives for the Thai rail operator. The value of the project is up to THB3.36b (S$133.6m).