Swiber price target cut 32% to 17 cents by Maybank Kim Eng

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: Maybank Kim Eng

Price Call: HOLD

Target Price: 0.25

SINGAPORE (March 25): Maybank Kim Eng has cut its price target for Swiber Holdings from 25 cents to 17 cents, based on 0.2 times book value versus 0.3 times previously, and kept its "hold" rating.

The stock trades at only 0.2 times book value, but the company's balance sheet is cause for concern given its gearing of 1.5 times and negative free cash flows, according to Maybank Kim Eng analyst Yeak Chee Keong.

SG: MARKET PULSE: Swiber, SingTel, Petra Foods, Comfort, CSE, Midas, KSE (15 Aug 2013)

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.86

Stock Name: SingTel
Company Name: SINGTEL

Research House: OCBC

Price Call: HOLD

Target Price: 3.81

Stock Name: Petra
Company Name: PETRA FOODS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 3.95

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD

Research House: OCBC

Price Call: HOLD

Target Price: 1.95

Stock Name: CSE Global
Company Name: CSE GLOBAL LTD

Research House: OCBC

Price Call: BUY

Target Price: 0.96

Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.54

Stock Name: KS Energy
Company Name: KS ENERGY LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.50

MARKET PULSE: Swiber, SingTel, Petra Foods, Comfort, CSE, Midas, KSE

15 Aug 2013

KEY IDEA Swiber Holdings: Softer 2Q13 but still executing well Swiber Holdings (Swiber) reported a 5.4% YoY rise in revenue to US$242.1m and a 13.7% increase in gross profit to US$37.1m in 2Q13. However, higher admin, finance and other operating expenses contributed to a 72.5% fall in net profit to US$4.2m in the quarter. Stripping out one-off items, core net profit was US$3.7m in the quarter, such that 1H13 recurring income accounted for 45% of our full year estimate. Gross margins remained healthy at 15.3% in 2Q13. Swiber's order book stood at US$1.2b as at 14 Aug 2013. Looking ahead, more orders are expected to be awarded by the end of this year. Its net gearing remains high at 0.92x, but the group is now executing well compared to its peers, and has improved substantially since its relatively difficult period in 4Q08-4Q09. Maintain BUY with S$0.86 fair value estimate. (Low Pei Han) MORE REPORTS SingTel: Decent FY14 start; but outlook muted Summary: SingTel posted 1QFY14 revenue of S$4293.3m, down 5.3% YoY and 4.2% QoQ, meeting about 24% of our full-year forecast; this largely weighed by lower revenue in Australia and the weaker AUD. Reported net profit though climbed 7.0% YoY and 16.4% QoQ to S$1011.0m, boosted by stronger EBITDA margins and higher associate contributions. Core net profit (excluding exceptional items) rose 5.5% YoY (but fell 10.4%) to S$897m, also meeting 24% of FY14 forecast. But going forward, the group's outlook remains somewhat muted, as SingTel expects lower overall revenue (mainly from Group Consumer), with likely EBITDA compression as well. In view of the latest guidance, we pare our FY14F revenue forecast by 5% and core earnings by 1.3%. Also accounting for weaker AUD forecast, our SOTP-based fair value slips from S$3.82 to S$3.81. Maintain HOLD. (Carey Wong) Petra Foods: A mixed 2Q13 Losses from Petra Foods' discontinued cocoa ingredients division in 2Q13 were smaller than expected, and PATM came in at US$4.8m with management declaring an improved interim dividend of 2.36 US cents (vs. 2.11 US cents in 2Q12). However, sales growth for the quarter was a bit disappointing and that leaves us concerned over a possible slowdown in consumption growth in Petra's core markets for 2H13. As a result, we maintain HOLD on Petra on account of the limited upside at this juncture. Our fair value estimate increases to S$3.95 (based on 28x FY14F PE) from S$3.88 previously following the much smaller cocoa losses. (Lim Siyi) ComfortDelGro: Fairly valued at this point ComfortDelGro's (CDG) 2Q13 results were in-line with expectations. Revenue grew 2.7% YoY to S$908.4m while operating profit improved 6.0% YoY to S$112.6m. An interim dividend of 3 S cents (vs. 2.9 S cents for 1H12) was announced. For 2H13, we expect a similar growth trend: continued top-line growth across most segments and manageable operating expenses. However, we view the lack of a SG fare increase in FY13 and anticipation of lower operating margins for Aussie bus operations as dampeners for upside potential at this juncture. Keeping our FY13 forecasts intact given the in-line results, we downgrade CDG to HOLD on valuation grounds but maintain our fair value estimate at S$1.95. (Lim Siyi) CSE Global: Simplifying CSE CSE Global Limited reported 2Q13 results that were generally in-line with ours and the street's estimate. 2Q core net profit increased 12% YoY to S$12m, mainly due to (i) the lower level of zero-margin revenue in the Middle East and (ii) higher level of more profitable offshore work in the Americas. Separately, the group disclosed that it intends to divest 100% of its ownership in its UK subsidiary through a separate listing on the London Stock Exchange. We are positive on the move. Besides unlocking value, we believe the spin-off would simplify and improve oversight of CSE's different businesses. Maintain BUY with an unchanged S$0.96 FV. (Chia Jiunyang) Midas Holdings: 2Q13 results above expectations Midas Holdings' 2Q13 results came in above our expectations, with revenue and PATMI soaring 29.2% and 834.1% YoY to CNY284.0m and CNY14.9m, respectively. This was due largely to a reversal of a hefty share of loss of CNY14.1m from its associated company, Nanjing SR Puzhen Rail Transport (NPRT) in 2Q12 to a share of profit of CNY3.1m in 2Q13. While we note that profit from operations actually fell 15.2% YoY to CNY35.9m, it was still ahead of our forecast. For 1H13, revenue grew 8.0% to CNY486.4m, while PATMI fell 40.8% to CNY10.0m due to a net loss in 1Q13. This constituted 53.4% and 28.6% of our FY13 projections, respectively. We are expecting 2H13 PATMI to improve significantly on a HoH basis. An interim DPS of 0.25 S cents was declared, similar to 1H12 and our forecast. We will provide more updates after the analyst conference call. For now we have a BUY rating on Midas. We will likely raise our 1.1x P/B target peg and S$0.54 fair value estimate given the improved sentiment within China's rail transport sector, with expectations that the high-speed train tenders may be resumed soon. (Wong Teck Ching Andy) KS Energy: S$1.6m net profit in 2Q13 KS Energy (KSE) reported a 29.4% YoY rise in revenue to S$196.2m and a net profit of S$1.6m in 2Q13 vs S$0.7m in 2Q12, such that 1H13 revenue and net profit accounted for 54% and 42% of our full year estimates, respectively. Gross profit margin was 22.8% in 2Q13 compared to 27.5% in 2Q12 and 23.3% in 1Q13, while operating profit was S$9.7m vs a loss in 1Q13. The group mentioned that it continues to experience "improving demand" from the oil and gas industry in Asia and believes that it is well positioned to tap into new opportunities in the oil and gas market. Pending more details from management, we maintain our HOLD rating but put our S$0.50 fair value estimate under review. (Low Pei Han)

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

NEWS HEADLINES - US stocks fell sharply, with the first triple-digit drop for the Dow since Jun, as investors worried about the recent spike in borrowing costs as well as the potential reductions in the Fed's bond purchases. - Global Logistic Properties reported 33% YoY increase in PATMI to US$204m for 1QFY14, which is boosted by revaluation gains despite a fall in revenue. - Thai Beverage Public Co posted a flat second quarter as lacklustre sales persisted in most business segments. - Liongold Corp is proposing a private placement of up to 180 million new shares at S$1.10907 apiece, a 10% discount on the volume-weighted average traded price on Tue.

SG: MARKET PULSE: Venture Corp, STE, CSE, Dyna-Mac, ECS, SingTel, Swiber, Tat Hong (14 Aug 2013)

Stock Name: Venture
Company Name: VENTURE CORPORATION LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 7.94

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD

Research House: OCBC

Price Call: HOLD

Target Price: 4.11

Stock Name: CSE Global
Company Name: CSE GLOBAL LTD

Research House: OCBC

Price Call: BUY

Target Price: 0.96

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

Research House: OCBC

Price Call: HOLD

Target Price: 0.44

Stock Name: ECS
Company Name: ECS HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.57

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.86

MARKET PULSE: Venture Corp, STE, CSE, Dyna-Mac, ECS, SingTel, Swiber, Tat Hong

14 Aug 2013

KEY IDEA Venture Corp: Position for the recovery Venture Corp's (VMS) 2Q13 revenue fell 3.9% YoY to S$587.7m, while PATMI dipped 10.6% to S$30.1m and was within our expectations. We expect a stronger showing from VMS in 2H13, driven by more meaningful contribution from the mass production of programmes from customers acquired in 2012 as well as new product launches. Management also sounded more upbeat during the analyst briefing, highlighting better sentiment amongst most of its customers. We retain our projections and roll forward our valuations to 15x blended FY13/14F EPS, which correspondingly raises our fair value estimate from S$7.37 to S$7.94. Given VMS's attractive FY13F dividend yield of 7.0% and an improved outlook, we upgrade the stock from Hold to BUY. (Wong Teck Ching Andy) MORE REPORTS ST Engineering: 2Q13 in line; Maintain HOLD Singapore Technologies Engineering (STE) reported 2Q13 results that were generally in line with our expectations and the street's. Revenue grew 1.7% YoY to S$1.60b, and PATMI climbed 3.3% to S$147.9m. Highlights include: 1) absence of gain on disposal of properties in Aerospace and Land Systems, which totalled S$12.8m in 2Q12; 2) write-back of allowance for doubtful debts (S$2.7m) in 2Q13 versus allowance for doubtful debts (S$10.6m) in 2Q12; 3) unfavourable fair value change of S$3.9m in 2Q13 versus a favourable fair value change of S$6.7m in 2Q12 with regard to cross currency interest rate swaps. We tweak our assumptions and our FY13F EPS falls slightly to 19.6 S-cents from 19.8 S-cents. Using a higher 21x peg (versus 20x previously) against our FY13F EPS, our fair value climbs to S$4.11 from S$3.97. We maintain a HOLD rating on STE. FY13F dividend yield is 4.1%. (Sarah Ong) CSE Global: Spin-off of UK business CSE Global reported in-line results with revenue of S$116m (-20% YoY) and core net profit of S$12m (+12%). Gross margin improved to 34% from 25% in the year-ago period, mainly due to lower level of zero-margin work in Middle East and more profitable offshore work in the Americas. Separately, the CSE disclosed that its UK subsidiary, CSE (UK), is currently pursuing a separate listing on the London Stock Exchange. The listing will provide financial independence to both CSE and CSE (UK) to facilitate future access into capital markets to pursue growth opportunities. We will follow up with more updates after its briefing later. In the meantime, we keep our BUY rating but put our S$0.96 FV under review. (Chia Jiunyang) Dyna-Mac Holdings: Improving order visibility Dyna-Mac Holdings reported revenue of S$76.6m (+32.6% YoY) and net profit of S$7.5m (+23.2%) for 2Q13. The results were in-line with our expectations such that 1H13 net profit formed 50% of our FY13F estimates. The order-book improved to S$246m, up from S$113m just three months ago, providing visibility over the next one year. We currently have a HOLD rating with S$0.44 FV, and will provide updates after speaking to management later. (Chia Jiunyang) ECS Holdings: 2Q13 core PATMI below expectations ECS Holdings (ECS) reported a 11.0% YoY increase in its 2Q13 PATMI to S$9.0m on the back of a 23.5% hike in revenue to S$1,017.5m. However, if we exclude forex and other exceptional items, we estimate that core earnings would have decreased 7.3% to S$6.9m, which was below our expectations due largely to a lower-than-estimated gross margin. For 1H13, revenue increased 22.0% to S$2,107.8m, forming 50.1% of our FY13 forecast. Core PATMI rose 9.6% (reported PATMI jumped 21.0%) to S$15.4m, or 44.5% of our full-year estimate. On a positive note, ECS generated healthy net operating cashflows of S$50.6m in 2Q13, which helped to lower its net gearing ratio from 50.1% (as at end 1Q13) to 38.5% (as at end 2Q13). We will provide more details after meeting up with management. Meanwhile, we maintain our BUY rating but our S$0.57 fair value estimate is under review. (Wong Teck Ching Andy) SingTel: Decent FY14 start; but outlook muted SingTel posted 1QFY14 revenue of S$4293.3m, down 5.3% YoY and 4.2% QoQ, meeting about 24% of our full-year forecast; this largely weighed by lower revenue in Australia and the weaker AUD. Reported net profit though climbed 7.0% YoY and 16.4% QoQ to S$1011.0m, boosted by stronger EBITDA margins and higher associate contributions. Core net profit (excluding exceptional items) rose 5.5% YoY (but fell 10.4%) to S$897m, also meeting 24% of FY14 forecast. Meanwhile, free cashflow also climbed 23% YoY to S$893m, mainly due to timing and higher dividend receipts from associates. But going forward, the group's outlook remains somewhat muted, as SingTel expects lower overall revenue (mainly from Group Consumer), with likely EBITDA compression as well. We will have more after the analyst teleconference later. For now, we place our Hold rating and S$3.83 fair value under review. (Carey Wong) Swiber Holdings: Soft 2Q13 results after a strong 1Q13 Swiber Holdings (Swiber) reported a 5.4% YoY rise in revenue to US$242.1m and a 13.7% increase in gross profit to US$37.1m in 2Q13. However, higher administrative, finance and other operating expenses contributed to a 72.5% fall in net profit to US$4.2m in the quarter. Earnings are generally lumpy by quarter due to project executions. 1H13 net profit rose 2.0% and accounted for close to 40% of our full year estimate, slightly below our expectations. Still, execution remains steady and the group has a US$1.2b order book with more work expected to be carried out in 2H13. Pending an analysts' briefing later in the afternoon, we maintain our BUY rating but put our fair value estimate of S$0.86 under review. (Low Pei Han) Tat Hong Holdings: Has earnings peaked? Our recommendation to take profit on Tat Hong shares ("Time to take profit", 26/6/2013) more than a month ago turned out to be timely. After eight quarters of strong performance, the group's earnings appeared to have peaked. In 1QFY14, it posted sharp declines in revenue (S$175m,-18% YoY) and net profit (S$8.2m; -51%) with weakness seen across every business segment. As we have feared, uncertainties in the macro environment have led to slower infrastructure and construction activities in Australia, Indonesia and Singapore. We are currently re-assessing the counter; and in the meantime, put our hold rating and S$1.31 FV under review. (Chia Jiunyang)

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

NEWS HEADLINES - US stock indexes rose on Tue, with technology pacing the gains, after investor Carl Icahn touted his large position in Apple Inc. - Banyan Tree Holdings' 2Q13 net profit rose to S$1.7m from S$644k a year ago as its revenue climbed 3% YoY to S$81.7m on the back of stronger contribution from its hotel investment segment. - Boustead Singapore saw its net profit for 1QFY14 rise 45% YoY to S$17.7m. - Asian Pay Television Trust declared a maiden distribution of 4.8 S-cents per unit for the period from 29 May 2013 (listing date) to 30 Jun 2013. - SBS Transit's ride continues to be bumpy, with its net profit dropping 30.6% YoY to S$3.2m for 2Q13.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: OKP
Company Name: OKP HOLDINGS LIMITED

Research House: DBS Vickers

Price Call: SELL

Target Price: 0.35

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 0.91

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

Research House: UOB KayHian

Price Call: HOLD

Target Price: 0.41

Market Compass

31 July 2013~ Good Morning Singapore!

Singapore Idea Snippets:

31 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 : Music is everybody's possession. It's only publishers who think that people own it. - JOHN LENNON Singapore: The Day Ahead SINGAPORE DAYBOOK :Bid for Jurong EC plot raises the roof and breaks record [SINGAPORE] An all-time record price for executive condominium land has been set for a plot in Jurong, an area which has been starved of new EC supply. Located near Jurong Country Club, the 99-year leasehold plot received a top bid of $418.53 per square foot per plot ratio (psf ppr) amid strong participation from 16 bidders. The buzz in the location, following strong sales at J Gateway condo last month, also contributed to the strong demand for the EC plot. However, two other EC sites - both in Punggol - whose tenders also closed yesterday in a bid by the authorities to rein in bullish bids for EC land - fetched top bids of about $355 psf ppr and $356 psf ppr, just a shade above the $351 psf ppr that a plot at Punggol Field Walk/Punggol East drew in December. Analysts said this was probably because developers were mindful of a possible saturation of EC and 99-year private condo projects in the Punggol/Sengkang location. ECs are a public-private housing hybrid with initial buyer eligibility and resale restrictions which are completely lifted 10 years after the completion of an EC project. Some analysts said the government's attempt to have simultaneous tender closings for three EC sites does not seem to have had its desired impact of tempering tender bids, while others suggest it may be too early to declare the experiment a failure. (Source: The Business Times) MARKET SCOOP SMRT's Q1 profit plunges 55.2% UOI's Q2 net profit down 32.1%, keeps dvd of 3cts OsimQ2 profit up 16% DBS offers protection for mortgages against rising rates Soilbuild Business Space REIT plans to offer 586.53m units at 77-80 cts each Fortune Reit plans to buy HK property for HK$5,849m, plans placement Q & M to buy 60% of Chinese dental group for S$21.6m LionGold to buy Canadian gold firm for up to S$9.1m (Source: The Business Times) DBS VICKERS Securities says... OKP HOLDINGS | FULLY VALUED | TP: S$0.35 2Q13 net profit plunged 77% y-o-y, 70% q-o-q to S$0.7m While revenue came in at S$30.1m (+27.5% y-o-y, -6% q-o-q), gross margins declined by 16.1ppts as a result of higher subcontracting costs and low margin work 1H13 earnings amounted to S$3.1m, accounting for just 30% of our previous forecast (net profit: S$10.1m) Margins to be depressed for another quarter The collapse in margins was affected by higher subcontracting costs, in particular construction work on Angullia Park The project was mostly subcontracted to third parties, and yielded very low margins but yet contributed close to 20% of 2Q13 revenue Angullia Park will continue to book in revenue till next quarter and we expect margins to continue to be depressed in 3Q13 as well Weak visibility for project wins Project rollout by the government has been slow in 1H13 To date, OKP has secured only S$52m of contracts compared to our S$130m project win expectations for FY13F at the start of the year Going forward, we expect project wins to come from the low value, low margin maintenance segment from 1) slow roll out of road works by LTA as it prepares to tender out work for the Thomson Line MRT; 2) continued roll out of drainage works by PUB to address flooding issues We cut FY13F/14F earnings by 42%/12% as we expect to see weak margins for at least another quarter Growth for FY14F will be driven by projects secured in FY12 and FY13, but we see pace of project wins slowing that will cause earnings decline in FY15F Our SOTP-based TP is reduced to S$0.35 Maintain Fully Valued We will be suspending coverage on OKP CIMB Securities says ... SWIBER HOLDINGS | OUTPERFORM | TP: S$0.91 Swiber has announced contracts of US$435m, comprising US$330m under the Swiber Group and US$105m from its JVs We understand that the US$330m itself is split into two major contracts:US$200m+ and US$100m(areas of work and customer details undisclosed) The above contracts will be largely executed in 2014-15 Earlier this year, Swiber's tender book was about US$2bn,with jobs from Mexico (US$500m), India (US$100m-200m), Brunei (US$300m) and Indonesia (US$1bn) We believe some of these bids have come to fruition and see more orders in the next quarter Given the nature of the industry, contract awards could be lumpy We keep our US$800m target for the year We see catalysts from more orders and stronger-than-expected quarterly earnings Swiber beat our expectations in 1Q13 with a core profit of US$22m from higher-than-expected revenue We expect net profit in 2Q13 to be about US$15m-18m Results will likely be announced in mid-Aug Maintain Outperform and target price at 0.9x CY13 P/BV (30% below its 5-year mean) YTD contracts have reached US$578m or 72% of our US$800mtarget No change to our EPS as the above orders form part of our assumptions We still see catalysts from stronger-than-expected orders and quarterly earnings UOB KAY HIAN says... GENTING HONG KONG | HOLD | TP: US$0.41 GENHK's 43.4% jointly-controlled entity, NCL Holdings, reported its 2Q13 results, with EBITDA of US$149m (+11.6% yoy) 1H13 EBITDA of US229m (+1.5% yoy) is in line with our full year EBITDA forecast of US$639m, after taking into account the seasonally strong 3Q13, and additional contribution from its newest vessel, the 4,000 berth Norwegian Breakaway, which commenced deployment in May 13 Revenue rose 10.5% yoy to US$644m in 2Q13, driven by an 8.2% yoy increase in capacity days The improved passenger ticket and on-board and other revenues, along with slower growth commissions, transportation and on board expenses rose at a slower 6.3% yoy lifted net yields NCL again booked a US$70.1m exceptional charge in 2Q13 relating to write offs and expenses related to two refinancing transactions While the transactions will strengthen NCL's balance sheet and reduce interest expense going forward, the expenses in relation to these transactions dragged 2Q13's bottomline to a net loss of US$8.8m for 2Q13 (recall that NCL recognized US$110.4m in expenses in relation to pre-payments and debt redemptions and related expenses) This brings 1H13's cumulative reported net loss US$105m, weighing down contributions to GENHK (we had forecast a full year net profit contribution of US$107m) Look forward to a stronger 2H13, lifted by the seasonally strong 3Q13 (3Q typically accounts for 40% of full year EBITDA) We maintain our HOLD call on GENHK pending the release of its 1H13 results Our conservative valuations mainly factor in uncertainties at RWM - the current tax liability issue and a sharp rise in industry capacity that could erode RWM's dilute returns Nevertheless, in the near term, GENHK's valuation could temporarily improve as its near term earnings momentum remains intact, driven by NCL and the resilience of RWM

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: CDL HTrust
Company Name: CDL HOSPITALITY TRUSTS

Research House: DBS Vickers

Price Call: BUY

Target Price: 1.89

Stock Name: Biosensors
Company Name: BIOSENSORS INT'L GROUP, LTD.

Research House: Nomura

Price Call: BUY

Target Price: 1.80

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: UOB KayHian

Price Call: BUY

Target Price: 0.86

Market Compass

30 July 2013~ Good Morning Singapore!

Singapore Idea Snippets:

30 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 : You may not be able to read a doctor's handwriting and prescription, but you'll notice his bills are neatly typewritten. - EARL WILSON Singapore: The Day Ahead SINGAPORE DAYBOOK :China cash homes in on S'pore property. Big jump in Chinese investments here and it's not limited to the residential sector. [SINGAPORE] An influx of Chinese capital is making itself felt in Singapore real estate, and not just in the residential segment. Looking at investment transactions above $50 million, CBRE has found that since the global financial crisis (GFC), Chinese capital invested in Singapore has been just short of $5 billion. Petra Blazkova, CBRE head of research for Singapore and South-east Asia, noted that in the first half of 2013, Chinese money represented 69 per cent of all foreign capital invested in Singapore (for investments above $50 million). In H1 2012, Chinese money accounted for 27 per cent of all foreign capital invested while in H2 2012, it was 67 per cent. (Source: The Business Times) MARKET SCOOP OKP Holdings Q2 profit plunges 77% Swiber jumps on contract wins, Islamic bond set-up GIC, Mitsubishi weigh Urenco bid: paper Prices of completed private homes dipped 0.4% in June Otto Marine signs US$170m sale and leaseback deal for two vessels (Source: The Business Times) DBS VICKERS Securities says... CDL HOSPITALITY TRUSTS | BUY | TP: S$1.89 Gross revenue and NPI declined by 3% and 4% y-o-y to S$35.6m and S$32.6m respectively The weaker operational performance from its Singapore hotels was the main culprit, which saw RevPAR declining by 8.5% y-o-y to S$193/night), while earnings from its Australian hotels were impacted by a weaker AUD-S$ exchange rate The contribution from Angsana Velavaru (cS$1.9m), acquired in 1Q13, mitigated the fall in income. Income available for distribution (after retained income) was 6.4% lower y-o-y at S$26.4m, translating to a DPU of 2.72 Scts ( -6.8% y-o-y) Faced with a weak corporate market and competition from new hotels, CDREIT's Singapore hotels, contributing c75% of topline, have performed fairly well in our view - portfolio occupancies for its Singapore portfolio remained fairly firm at 87.7% but average daily rate was 6.8% lower at S$220/night (-6.8% y-o-y), which might have been a result of the substitution effect from sourcing replacement demand from leisure travelers which typically pays lower rates Looking ahead, the group is seeing demand stabilizing in 3Q13 with bookings for the Sept'13 Formula One race looking brighter compared to a year ago Thus, 2H13 performance is likely see a sequential improvement Albeit short term uncertainties, we believe that the stock offers a re-look at close to 1x P/BV, forward yields of c6.5-6.8% Acquisitions are a likely feature as management undertakes a more aggressive stance towards growth, with an aim to achieve further portfolio diversification, which is not factored in our forecasts Stock offers a total return of 18% to our revised TP of S$1.89 (adjusted for higher risk free of 2.8% vs 2.1%) NOMURA Securities says ... BIOSENSORS INTERNATIONAL | BUY | TP: S$1.80 We caught up with the management of Biosensors at its AGM yesterday and highlight the following takeaways: Management indicated that it will continue to be on the lookout for M&A opportunities to grow the group into a global medical devices platform group The acquisition of Spectrum Dynamics (SD) provides an opportunity for the group to broaden its offering in the cardiovascular space The SD imaging machine could potentially help doctors ascertain the appropriate treatment for patients with heart disease A trial is being conducted in Japan to confirm the applications that the SD imaging machine can offer As at 31 March 2013, Biosensors has a net cash position of US$337m Management appeared confident of its guidance of 15% growth in product revenue, underpinned by its core DES business as it gains market share in spite of a stagnating global DES market Biosensors will launch 4 new products this year including Biomatrix Neoflex, BioFreedom and two balloon catheters under license from Eurocor Through joint marketing efforts with Terumo, Biosensors hopes to stabilize its market position in Japan and improve sales Plans are underway to seek regulatory approval for BioFreedom in Japan To a question from a shareholder if the group will address the US market, management indicated that while the US market is attractive, the group will need to find the best way to address the market eventually Enrolment for both its LEADERS FREE and GLOBAL LEADERS trials are progressing well (LEADERS Free is a prospective, randomized double blind trial between a DES and a bare metal stent involving patients with high risk of bleeding The primary end point is safety with one month course of DAPT.) The data from LEADERS FREE will be used to support the marketing of BioFreedom We reiterate our Buy Rating for Biosensors with price target of S$1.80 The shares look attractively valued at 12x FY2014 EPS with an earnings CAGR of 11% over the next 3 years UOB KAY HIAN says... SWIBER HOLDINGS | BUY | TP: S$0.86 Swiber has announced it has secured US$435m of new contracts, of which US$350m worth of contracts were secured by the Swiber Group while US$105m were clinched by a Swiber Group JV company We have assumed US$800m worth of new contracts for 2013 in our 2013-15F earnings forecasts Prior to today's announcement, contract wins were lagging expectations Swiber had won only US$153m worth of new contracts - announced in February - as the group was bidding for three large projects (worth US$300m each) which were taking a while to conclude With today's announcement, Swiber's gross contract wins ytd now stand at US$588m (including external JV shares) We are maintaining our contract win projection of US$800m (net basis, excluding external JV shares) for 2013 No change in our earnings forecasts and target price of S$0.86, which is pegged at 6.2x 2014F fully-diluted EPS

OSPL - Good Morning S'pore - Central Dealing Desk

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

Research House: UOB KayHian

Price Call: BUY

Target Price: 3.63

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.86

Stock Name: Tiong Seng
Company Name: TIONG SENG HOLDINGS LIMITED

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.33

Market Compass

11 June 2013~ Good Morning Singapore!

Singapore Idea Snippets:

11 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 : Someone's sitting in the shade today because someone planted a tree a long time ago. - WARREN BUFFETT Singapore: The Day Ahead SINGAPORE DAYBOOK:No single brand to dominate Sports Hub WHILE the door is wide open for companies to be involved in the new $1.33 billion Singapore Sports Hub, no single commercial brand must "overshadow or dominate" the project's national identity. With construction of the mega-project in Kallang approaching the final stretch ahead of its targeted April 2014 opening, the consortium members are in talks with potential corporate partners and sponsors. Acting Culture, Community and Youth Minister Lawrence Wong said that it was important to have a strong level of corporate involvement in such a large-scale project. "Companies enable us to have more impact and outreach in sports. That's why we entered into this project on a public-private-partnership (PPP) model," he told reporters after making a site visit to the Sports Hub yesterday. (Source: The Business Times) MARKET SCOOP CNAGroup plans investment in Australia KeppelInfra unit wins $80m to date Fitchrates UOB's offshore renminbi notes 'AA-(EXP) Raffles Medical to sell 30 Bideford Rd after failing to get nod for medical centre Deutsche Bank to open 200-tonne gold storage facility in Singapore Ascottto manage 8th serviced residence in the Philippines Petra'scocoa unit sale gets European Commission nod Del Monte's major shareholder places 150m shares at PhP26.40 each (Source: The Business Times) UOB KAY HIAN says... OVERSEAS UNION ENTERPRISE | BUY | TP: S$3.63 OUE H-Trust (OUE Hospitality Trust) imminent with Mandarin Orchard (S$1,190m) and Mandarin Gallery (S$540m) confirmed as initial assets The properties will be divested to OUE H-Trust at a minimum price of S$1,705m (maximum 1.4% discount to valuations of S$1,730m), comprising gross cash proceeds of S$$1,359.5m and OUE H-Trust units worth S$345.5m Special dividend of 6-10%, assuming OUE distributes at least 30-50% of the proceeds OUE has committed to distribute up to 50% (S$305m) of the gross cash proceeds (S$610m) following the repayment of existing S$750m debt secured against the properties OUE is expected to retain a 30% stake (S$345.5m) in OUE H-Trust post-listing EGM on 25 June for shareholders to approve the divestment of Mandarin Orchard and Mandarin Gallery into OUE H-Trust and the distribution of special dividends Gearing to improve to 14.8% post-listing of OUE H-Trust from 62.1% currently Asset-light strategy with Mandarin Orchard Hotel master-leased back to OUE for a period of 15 years on an underlying fixed rental of S$45m per year The minimum divestment price of S$1,705m is S$18m (1.1%) above our built-in RNAV estimate of S$1,687m (Mandarin Orchard S$1,151m and Mandarin gallery at S$536m) for the two properties The divestment at the minimum price would result in a marginal 1 S cent accretion to our RNAV of S$4.54 However, the NTA is likely to rise 33% to S$4.59 The choice of Mr Chong Kee Hiong as CEO of OUE H-Trust should be viewed favourably by the market OUE has granted a Right of First Refusal (ROFR) to OUE H-Trust to acquire relevant hospitality assets in the pipeline REIT offers new management fee income base as OUE is expected to retain 100% interest in the REIT manager\ Maintain BUY with unchanged target price of S$3.63/share, which is pegged at a 20% discount to our RNAV of S$4.54/share OCBC Securities says ... SWIBER HOLDINGS | BUY | TP: S$0.86 According to Upstream, PEMEX is preparing to begin a bid process that aims to offer a contract to deliver and install four Ayatsil platforms The group is in the prequalification phase for the contract, and heavy-lift contractors such as Saipem, Heerema and Swiber Holdings are said to be interested The entire package is estimated to be worth ~US$300m Swiber recently saw its share price run up about 23% from 14 May (pre-1Q13 results announcement) to its close on Friday, after we upgraded our rating from Hold to Buy However we still see an upside potential of about 12% over a one year time frame Maintain BUY with S$0.86 fair value estimate DBS VICKERS Securities says... TIONG SENG HOLDINGS | BUY | TP: S$0.33 Tiong Seng Holdings (Tiong Seng)V announced it had signed a non-binding Memorandum of Understanding ("MOU") with Shwe Taung Development Co., Ltd (Shwe Taung), one of the most prominent corporations in Myanmar, to consider a joint venture to set up a precast plant in Myanmar The proposal is for a 30%-70% structure with Tiong Seng taking a minority stake This comes on the back of the group's plan to expand its precast facilities in the region - it recently acquired a piece of land in Iskandar to build a pre-cast facility The partner, Shwe Taung, is one of Myanmar's prominent corporations with a diverse business portfolio and the country's largest employer This may in the longer term be another avenue to extend its business contacts and potentially a new business arm into Myanmar The Myanmar Ministry of Construction's plan to build more than 1 million houses nationwide over the next 20 years and residential construction accounts for 51%, or US$1.5 billion, of Myanmar's total construction output In Yangon alone, demand for affordable housing is 200,000 units each year compared to only 20,000 units supplied every year

SG: MARKET PULSE: Golden Agri, ASL Marine, Swiber (10 Jun 2013)

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

Research House: OCBC

Price Call: BUY

Target Price: 0.63

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

Research House: OCBC

Price Call: BUY

Target Price: 0.86

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.86

MARKET PULSE: Golden Agri, ASL Marine, Swiber

10 Jun 2013

KEY IDEA Golden Agri-Resources: Modestly firmer CPO boost Summary: Golden Agri-Resources (GAR), being one of the largest palm oil plantation owners in the world, should benefit from the recent rebound in CPO (crude palm oil) prices to MYR2450/ton; we note that there is a strong historical correlation of nearly 0.7 between CPO prices and GAR share price. While the general outlook for commodities is still uncertain (as China's economic growth continues to sputter along), we believe that headwinds appear to be dissipating. Furthermore, management remains fairly upbeat about its prospects as it continues to expand its integrated operation capabilities to benefit from the firm industry outlook. Maintain BUY with an unchanged S$0.63 fair value (based on 12.5x FY13F EPS). (Carey Wong) MORE REPORTS ASL Marine: Ceasing coverage Summary: Among the various offshore and marine stocks, ASL Marine (ASL) is one of the counters with a more diversified business model. Its shipbuilding operations accounted for 46% of gross profit in 9MFY13, ship-repair and conversion accounted for 22%, while ship-chartering contributed 32%. The group expects the outlook of the offshore and marine industry for this year to be "good", but margins may be impacted by stiffer competition from Chinese shipyards. The long-term future of ASL looks bright, but more time would likely be needed for significant earnings growth and a re-rating of the stock. In particular, the liquidity of the stock is relatively low, partly due to the free float of ~37.8%. We last rated ASL a Buy with a fair value estimate of S$0.86. Due to a re-allocation of internal resources, we are ceasing coverage on this counter. (Low Pei Han) Swiber Holdings: More work coming up? Summary: According to Upstream, PEMEX is preparing to begin a bid process that aims to offer a contract to deliver and install four Ayatsil platforms. The group is in the pre-qualification phase for the contract, and heavy-lift contractors such as Saipem, Heerema and Swiber Holdings are said to be interested. The entire package is estimated to be worth ~US$300m. Swiber recently saw its share price run up about 23% from 14 May (pre-1Q13 results announcement) to its close on Friday, after we upgraded our rating from Hold to Buy. However we still see an upside potential of about 12% over a one-year time frame. Maintain BUYwith S$0.86 fair value estimate. (Low Pei Han)

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

NEWS HEADLINES - Sembcorp Industries Ltd. reports solid waste management unit getting a S$299m contract from NEA to provide refuse collection and recycling services to the City-Punggol sector of Singapore. - British automaker Rolls-Royce has won a contract to supply engines and support 50 of Singapore Airlines' Boeing Dreamliner jets in a deal worth US$4b at list prices. - Asian Pay Television says asset manager Thornburg Investment to raise stake in the company; buying 73.8m shares for S$53.6m. - Halcyon Agri Corp. (HACL SP) reports listing of 40m new shares at S$0.5175 each. - Armarda Group (AMDA SP) names Chu Yin Ling Karen as CFO. Chu Yin Ling was previously the Financial Controller of Armarda Group Ltd since July 2009.

SG: MARKET PULSE: Land Transport, Swiber, SembMarine, Ezra and Ezion (31 May 2013)

Stock Name: SMRT
Company Name: SMRT CORPORATION LTD

Research House: OCBC

Price Call: HOLD

Target Price: 1.45

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD

Research House: OCBC

Price Call: HOLD

Target Price: 1.95

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.86

Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD

Research House: OCBC

Price Call: BUY

Target Price: 5.64

Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 1.10

Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.62

MARKET PULSE: Land Transport, Swiber, SembMarine, Ezra and Ezion

31 May 2013

KEY IDEA Land Transportation sector: Possibility of new entrant? The LTA recently re-iterated the possibility of introducing competition in the bus services industry. However, as with before, we do not anticipate any changes to the operating landscape in the medium term unless the government decides how it wants to strike a balance between a free-market and government assisted model. For the near-term, the street is awaiting the recommendations from the fare review committee and has already factored in some level of increase. That said, any further delays from this committee could lead to continued losses for both PTOs and even asset impairments for SMRT. We downgrade the sector to NEUTRALin light of this possibility but do not anticipate further deterioration in the share prices for both ComfortDelgro and SMRT at this juncture. Maintain our HOLD ratings on both SMRT [HOLD; FV:S$1.45] and ComfortDelgro [HOLD; FV:S$1.95] although we favour the latter for its more attractive overseas ventures. (Lim Siyi) MORE REPORTS Swiber Holdings: Expanding into deepwater According to Upstream, Swiber Holdings is preparing to invest in its first large deep-water offshore construction vessel for its fleet. In particular, the company is understood to have expressed its intention to purchase a vessel similar to Ezra's Lewek Constellation. The capex of US$400-500m is huge, but considering that the unit is expected to take up to three years to build and the group has not announced any additional substantial capex plans, this may be a manageable purchase. Meanwhile, we would continue to monitor the group's cashflow from operations. Pending an official statement from the company, we do not see this as a surprise, as Swiber has expressed its intentions to expand its operations into deeper waters. Maintain BUY with S$0.86 fair value estimate. (Low Pei Han) Sembcorp Marine: Secures US$220.5m jack-up rig Sembcorp Marine (SMM) announced that subsidiary PPL Shipyard has secured a contract to build a jack-up drilling rig from BOT Lease Co., Ltd, a leasing company of The Bank of Tokyo-Mitsubishi UFJ which is under the umbrella of Mitsubishi UFJ Financial Group. The contract price is US$220.5m (excluding cost of BOTL's project management team and pre-operations cost), and is scheduled for delivery at end-Jan 2015. The unit is based on the proprietary Pacific Class 400 design; we note that Oro Negro had ordered a rig of similar design from SMM with a price tag of US$208.5m in Mar and Perisai Petroleum at US$208m in Feb this year. With this latest win, SMM has secured orders worth about S$2.7b YTD, accounting for 67% of our full year estimate. Maintain BUY on SMM with S$5.64 fair value estimate. (Low Pei Han) Ezra Holdings and Ezion Holdings: Ezra divests remaining shares in Ezion Ezra Holdings announced that it will divest its holding of 40m shares in Ezion Holdings via a placement that is fully underwritten by DBS Bank. This represents about 4.17% of Ezion's issued share capital, and was transacted at a price of S$2.25/share (4.9% discount to VWAP over 30 May 2013) for a total consideration of S$90m. Ezra will realize an estimated net gain of ~US$65.7m, and it intends to use the proceeds for working capital needs, lowering debt and fund growth of operations. We are not surprised by this move as Ezra had also previously sold off 60m shares in Ezion in Mar 2012. Maintain BUY on Ezion with S$2.62 fair value estimate and HOLD on Ezra with S$1.10 fair value estimate. (Low Pei Han)

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

NEWS HEADLINES - US stocks rose on Thursday, rebounding from the previous session's losses, as tepid economic data eased concerns the US Federal Reserve would begin to gradually scale back its policy of stimulating growth. - WE Holdings Ltd will place 80m new shares at S$0.10224 each to raise S$7.5m in net proceeds to repay a bank loan and for general working capital purposes. - Ascendas Hospitality Trust has launched an equity-fund exercise to raise at least S$200m to partially fund the S$300m acquisition of Park Hotel Clarke Quay. - Del Monte Pacific Ltd announced that its application for listing by way of introduction of all the company's shares on the First Board of the Philippine Stock Exchange (PSE) was approved. - Yongnam Holdings has secured a 5-year S$130m syndicated loan from CIMB Bank, DBS Bank, OCBC and Chinatrust Commercial Bank. - The HDB on Thursday launched 8,000 flats for sale under the joint Build-to-Order (BTO) and Sale of Balance Flats (SBF) exercise.

SG: MARKET PULSE: NOL, SingTel, Olam, Noble, Comfort, Midas, SATS, SIAE, Swiber, CSE, CWT, Dyna-Mac, UE E&C, VARD (15 May 2013)

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 1.38

Stock Name: SingTel
Company Name: SINGTEL

Research House: OCBC

Price Call: TRADING BUY

Target Price: 3.68

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 1.50

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD

Research House: OCBC

Price Call: HOLD

Target Price: 1.95

Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.595

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

Research House: OCBC

Price Call: HOLD

Target Price: 4.38

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.70

Stock Name: CSE Global
Company Name: CSE GLOBAL LTD

Research House: OCBC

Price Call: BUY

Target Price: 0.99

Stock Name: CWT
Company Name: CWT LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 2.08

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

Research House: OCBC

Price Call: HOLD

Target Price: 0.50

MARKET PULSE: NOL, SingTel, Olam, Noble, Comfort, Midas, SATS, SIAE, Swiber, CSE, CWT, Dyna-Mac, UE E&C, VARD

15 May 2013

KEY IDEA Neptune Orient Lines - Looking at the positives Summary: Neptune Orient Lines's (NOL) 1Q13 results disappointed with a larger-than-expected core operating loss. Nonetheless, the figures marked a vast improvement over the same period a year ago. Revenue stayed relatively flat at US$2.37b (-0.3% YoY) and core operating losses narrowed to -US$85.2m from -US$233m a year ago following the success of the cost cutting initiatives implemented last year. Entering 2Q13, NOL could experience further downward pressure on freight rates although we remain hopeful that a combination of positive macro-data, collective industry action and lower bunker fuel costs will push NOL towards a more positive showing by 3Q13. We maintain our view for a modest recovery in FY13 for the liner and keep our BUYrating with an unchanged fair value estimate of S$1.38. (Lim Siyi) MORE REPORTS SingTel: FY13 results just about in line Summary: SingTel posted its 4QFY13 results this morning, with revenue slipping 6% YoY and 3% QoQ to S$4.48b, weighed down by the weaker A$. Full-year revenue fell 3% to S$18.18b, and was 3% shy of our forecast. Reported net profit for 4Q came in at S$868.2m, down 33% YoY but up 5% QoQ; core earnings slipped 2% YoY and rose 15% QoQ to S$1.0b. Core FY13 earnings eased 1.8% to S$3.61b, and was about 4% below our forecast. SingTel has declared a final dividend of S$0.10/share, bringing the full-year payout to S$0.168 (74% of underlying net profit). For FY14, SingTel expects to consolidated revenue to remain stable, while EBITDA should continue to see low single-digit growth. It also expects to spend some S$2.5b in capex, with free cashflow coming in at around S$2b. Last but not least, it has revised up its dividend payout ratio from 55-70% to 60-75%. We will have more after the analyst teleconference later. Meanwhile, we place our Buy rating and S$3.68 fair value under review. (Carey Wong) Olam Int'l: Decent 3QFY13 results Summary: Olam International Limited (Olam) saw 3QFY13 revenue climb 12% YoY (but down 4% QoQ) to S$4.72b, such that its 9MFY13 revenue of S$14.31b (+20%) met 72% of our FY13 forecast. Reported net profit gained 10% YoY (but fell 30% QoQ) to S$108.5m, while core earnings (excluding bio-asset revaluation gains etc) rose 13% YoY (down 22% QoQ) to S$92.8m. Core 9MFY13 earnings of S$240.3m met about 79% of full-year forecast. We will have more after the analyst briefing later. Until then, our Hold rating and S$1.50 fair value is under review. (Carey Wong) Noble Group Ltd: Weak FY13 start but recovery expected Summary: Noble Group (Noble) reported a 1.1% YoY QoQ decline in revenue to US$22.6b, meeting 22.5% of our full-year forecast, but reported net profit tumbled 62.5% to US$41.3m, or about only 10.2% of our original FY13 forecast, weighed by losses at its Agriculture segment. Its Metals, Minerals and Ores (MMO) also did not fare too well. The only bright spark came from its Energy segment, with operating income up 6% at US$368.0m, although tonnage (Excluding gas and power volume) was flat. Noble intends to continue with its asset light strategy and also intends to focus on improving its efficiency and lowering cost amid a still-challenging environment. Still, we are cutting our FY13F earnings by 10% (FY14F by 13%), which in turn eases our fair value from S$1.19 to S$1.09. Maintain HOLD. (Carey Wong) ComfortDelGro - Decent start to the year Summary: ComfortDelGro's 1Q13 results saw revenue increasing slightly by 1.8% YoY to S$870.8m on the back of broad-based growth across its segments while operating profit improved 2.8% to S$95.9m as higher staff and repairs and maintenance expenses were offset by a reduction in fuel and electricity expenditure. As a result, PATMI rose 7.9% to S$57.7m. In the coming quarters, we expect a fare increase to be implemented by the government in FY13, and the group should to continue benefiting from lower fuel costs due to the favourable fuel outlook and proactive hedges in place, which should offset sustained weakness in the SG bus business. While we continue to prefer ComfortDelgro over SMRT, we maintain our HOLD rating with an unchanged fair value estimate of S$1.95 in light of its recent ~8% appreciation. (Lim Siyi) Midas Holdings: 1Q13 net loss wider than expected Summary: In line with its profit guidance issued on 10 May, Midas Holdings reported a net loss attributable to shareholders of CNY4.9m in 1Q13, versus PATMI of CNY15.3m in 1Q12. Revenue fell 12.1% YoY to CNY202.4m. While we had expected Midas to report a loss-making quarter, the magnitude was larger than our forecast for a net loss of CNY3.2m. However, revenue was within our CNY199.8m estimate. The below-expectations bottomline performance was due partially to weaker-than-estimated gross margin and largely attributed to a wider share of loss of CNY4.0m from its associated company, Nanjing SR Puzhen Rail Transport (OIR forecast: share of loss of CNY0.8m). On an operational basis, Midas was actually profitable, although profit from operations dipped 50.4% YoY to CNY18.9m. We will provide more updates after the analyst conference call. For now we have a BUY rating on Midas. However, our forecasts, 1.2x P/B target peg and S$0.595 fair value estimate are likely to be lowered given the ongoing uncertainty over the timeline of resumption of new high-speed train car orders. (Wong Teck Ching Andy) SATS Ltd - FY13 results in-line Summary: SATS's FY13 results were in line with our expectations, coming in within 2% of our projections. Revenue grew 7.9% YoY to S$1,819m on the back of increases from the gateway and food businesses while operating profit increased correspondingly by 13.8% YoY to S$192.3m. Despite cost pressures related to higher staff expenses and raw material costs, SATS was able to register an improvement of 0.6ppt in operating margin to 10.6% from a year ago. FY13 PATMI was S$184.8m (+2.1% YoY). Management declared a final and special cash dividend of 6 S cents and 4 S cents, respectively, to bring the total dividends declared in FY13 to 15 S cents (FY12 total: 26 S cents), representing a payout ratio of 90.3% of PATMI. As SATS's share price has continued to appreciate in the previous weeks, we feel that many of the positives have already been priced in. Nonetheless, pending the analyst briefing later this morning, we place our HOLD rating and fair value under review. (Lim Siyi) SIA Engineering: FY13 within expectations Summary: SIA Engineering Company's (SIAEC) FY13 results were in line with ours and the street's expectations. Revenue decreased by 2.0% to S$1.15b, chiefly due to lower fleet management and project revenue. Operating profit fell 1.2% to S$128m. Share of profits from associated and JV companies increased by 1.5% to S$159m, representing a contribution of 52.0% of the group's pre-tax profits. PATMI was up 0.4% to S$270m. Basic EPS of 24.51 S cents formed 98% of ours and the street's FY13 estimates. The board is recommending a final ordinary dividend of 15.0 S cents, which will bring total FY13 dividends to 22.0 S cents per share. Pending a briefing with management, we are maintaining our HOLD rating but place our fair value estimate of S$4.38 under review. (Sarah Ong) Swiber Holdings: Good 1Q13 results Summary: Swiber Holdings (Swiber) reported a 59.3% YoY rise in revenue to US$309.7m and a significant rise in net profit from US$8.6m in 1Q12 to US$20.1m in 1Q13. Both revenue and pre-tax profit formed 27% of our full-year estimates, in line with our expectations, but the lower-than-expected tax rate meant that net profit accounted for 38% of our full-year forecast. Gross profit margin was lower at 16.1% in 1Q13 vs 19.8% in 1Q12. Swiber's order book stands at about US$1.1b as at May. Net gearing increased slightly from 0.95x in 4Q12 to 1.0x in 1Q13. Pending an analysts' briefing later in the afternoon, we put our hold rating and fair value estimate of S$0.70 under review. (Low Pei Han) CSE Global: 1Q13 net profit within expectations Summary: CSE Global's 1Q13 net profit was flat at S$12.7m, forming about 24% of our full-year estimates and 23% of the street's. Revenue declined 11% to S$120m due to lower contribution from the Americas and the EMEA region. However, net margin improved to 10.5% (1Q12: 9.4%) as it undertook higher margin work in the Americas and the loss-making projects are nearing completion. CSE's order-book declined to S$361.1m as at end-1Q13 (end-4Q12: 384.5m). Pending an analyst briefing later, we keep our BUYrating (FV: S$0.99) unchanged. (Chia Jiunyang) CWT Ltd: Commodity SCM expansion underway Summary: CWT's 1Q13 revenue increased by 39% YoY to S$1.5b, largely due to growth from its newly established Commodity SCM business. However, net profit was flat at S$27m as the start-up costs offset any incremental earnings for the new business segment. Nonetheless, the results were within our expectations. CWT's balance sheet also appeared to be stable with net gearing of 0.48x as at end-Mar 2013. We currently have a BUYrating on CWT with a FV estimate of S$2.08, and will provide further updates after our call with management. (Chia Jiunyang) Dyna-Mac Holdings: Stay cautious Summary: Dyna-Mac Holdings reported revenue of S$60m (+155% YoY) and net profit of S$6.7m (+101% YoY) for 1Q13. However, gross profit margin declined to 24.4% from 28.8% in the year-ago period due to fewer variation orders during the quarter. Its order-book fell to S$113m (as at 14 May 2013) from S$134m (as at 27 Feb 2013), providing cover for only two quarters. This makes it vulnerable to any delays in the award of new contracts. We keep our HOLD rating for now and will review our S$0.50 fair value after our discussions with management. (Chia Jiunyang) UE E&C: Construction pace expected to pick up Summary: UE E&C reported a 43% YoY increase in revenue to S$87.6m and a 14% YoY increase in net profit of S$4.8m in 1Q13. The improvements were mainly due to larger contribution from existing projects. However, 1Q gross profit margin fell to 10.8% from 15.4% in the year-ago quarter as some of the projects were still in preparatory stages. We expect the construction pace to pick up in 2H13. Pending our discussions with management, we keep our BUY rating and S$0.82 fair value unchanged. (Chia Jiunyang) VARD Holdings: Earnings recovery in FY14 Summary: VARD Holdings' 1Q revenue and net profit declined by 2% and 30% YoY to NOK2.7b and NOK188m respectively, largely due to (i) the completion of several high-margin jobs last year, and (ii) operational challenges in the Niteroi yard in Brazil. Although 1Q results were slightly lower than ours and consensus estimates, we now see positive developments that we believe would herald an earnings recovery in FY14F. Firstly, management is now more positive on Brazil and expects operations to stabilize by year-end. Secondly, order-book is at a very healthy level and management is optimistic on securing new contracts. Thirdly, management is now able to commit to longer-term investment with Fincantieri coming onboard as a controlling shareholder. Maintain BUY with unchanged S$1.52 fair value estimate. (Chia Jiunyang)

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

NEWS HEADLINES - Hotel Grand Central's 1QFY13 net profit declined 17% YoY due to a slowdown in its Australian businesses. - Jaya Holdings' 3QFY13 net profit rose 7% YoY from US$3.8m to US$4.0m, helped by higher day rates commanded for offshore support services. - Mewah posted a decline in PATMI by 53.6% YoY despite sales volume increasing 9.2% YoY and 18.1% QoQ. - Sim Lian recorded a 45% YoY improvement in net profit for 3QFY13 on the back of a 37% increase in revenue.

SG: MARKET PULSE: ART, Swiber (7 May 2013)

Stock Name: AscottREIT
Company Name: ASCOTT RESIDENCE TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 1.35

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.70

MARKET PULSE: ART, Swiber

7 May 2013

KEY IDEA Ascott Residence Trust: Acquisition of assets in China and Japan Ascott Residence Trust (ART) has entered into conditional agreements to acquire three prime serviced residences in China and a portfolio of 11 rental housing properties in Japan for S$287.4m at an EBITDA yield of 5.4% on a pro forma basis for FY12. On a pro forma basis, these accretive acquisitions are expected to have increased FY12 distribution per unit by 2.9% from 8.76 S cents to 9.01 S cents. However, with the Japanese Yen currently ~22% weaker in SGD-terms versus the FY12 average, any accretion post-acquisition is likely to be lower. The acquisitions will be funded partly by the S$150m recently raised from an equity placement and the balance will be funded by debt. We maintain our FV of S$1.35 and HOLD rating on ART. (Sarah Ong) MORE REPORTS Swiber Holdings: Still bidding for projects According to Upstream, Punj Lloyd is poised to win a US$131.45m contract from India's state-owned ONGC to lay subsea pipelines and execute topside modification work for the B-127 field development in India. We understand that Swiber was the highest bidder for the project with a 13.3% difference from Punj Lloyd's price quote. Meanwhile, Swiber is still bidding for other work; management has been upbeat regarding its potential pipeline. Despite the positive industry outlook, we would continue to monitor operating margins and cash flows of the group. Meanwhile, the stock price has fallen by about 1.6% YTD vs the STI's 6.9% rise. Though there is currently a more than 10% upside for the stock, we prefer to maintain our HOLD rating and fair value estimate of S$0.70 on Swiber, pending its 1Q13 results announcement next week. (Low Pei Han)

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

NEWS HEADLINES - MTQ Corporation's 4QFY13 net profit soared 94% YoY to S$7.75m. - CH Offshore, which charters vessels to support the offshore oil and gas industry, yesterday posted a 57% YoY fall in net profit to US$4.76m for its fiscal 3Q ended March 31. - Viking Offshore & Marine's 1Q13 net profit from continuing operations fell 77% YoY to $237,000 as "other income" dropped 64% to $698,000 due to absence of a one-time divestment gain from last year. - Asiamedic has agreed to buy 80% of Complete Healthcare International Pte Ltd for a maximum consideration of $2m in cash. - Abalone producer Oceanus Group's 1Q13 loss widened to CNY45.2m (S$9.0m) from CNY39.1m a year ago. - Industrial property developer OKH Holdings begins life as a listed entity today under the name OKH Global, following a S$123.2m reverse takeover of China-based IT solution provider Sinobest Technology.

Maybank starts Swiber with 'buy', target $0.82

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: Maybank Kim Eng

Price Call: BUY

Target Price: 0.82

Maybank Kim Eng initiated its coverage of offshore services firm Swiber Holdings with a ‘buy’ rating and $0.82 target price, citing the stock’s low valuations and limited downside.

Swiber shares were up 4.2% at $0.62 on Wednesday. The shares have risen 16% so far this year versus the 23% gain in the FT ST Small Cap Index.

Maybank expects Swiber’s earnings per share to grow at a compound annual growth rate of 18% over 2012-2014 fiscal years, supported by the recognition of its US$1.4 billion ($1.7 billion) offshore construction order book and contract win momentum.

Swiber’s fleet size increased from 10 vessels in 2006 to more than 50 currently, allowing it to handle more sophisticated jobs, depend less on third-party vessels and have greater flexibilities in fleet deployment, Maybank said.

The broker added that Swiber stock is a relative "laggard", trading at a price-earnings ratio of 5.8 times for 2013 fiscal year and a price-to-book of 0.6 times. But it noted there might be an overhang from high gearing and cash needs.

MARKET PULSE: CityDev, KSH, Olam, Swiber, STX OSV, Valuetronics, Viz Branz, Midas, KSE (15 Nov 2012)

Stock Name: CITYDEV
Company Name: CITY DEVELOPMENTS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 13.10

Stock Name: KSH Hldg
Company Name: KSH HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.50

Stock Name: Olam
Company Name: OLAM INTERNATIONAL LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 1.80

Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.65

Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 1.69

Stock Name: Valuetronics
Company Name: VALUETRONICS HOLDINGS LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.20

Stock Name: VizBranz
Company Name: VIZ BRANZ LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.735

Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 0.505

Stock Name: KS Energy
Company Name: KS ENERGY LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 0.83

MARKET PULSE: CityDev, KSH, Olam, Swiber, STX OSV, Valuetronics, Viz Branz, Midas, KSE

15 Nov 2012

KEY IDEA City Developments Limited: Looking ahead to Redhill launch in 4Q12 CDL reported 3Q12 PATMI of $134.5 which showed a marginal YoY increase (1.8%) over 3Q11. Recognition at development projects kept mostly in pace with the previous quarter and we judge this set of results to be generally in line with expectations. HAUS@SERANGOON GARDEN and Up@Robertson Quay have 86 and 48 units sold to date, respectively. In addition, The Palette and Bartley Residences are over 94% and 92% sold, respectively. Looking ahead to 4Q12, we expect CDL to launch the 508-unit condominium development (the Echelon) near Redhill MRT station and, in 1H13, another 912-unit project in Pasir Ris Grove. Hotel subsidiary M&C reported 3Q12 PATMI of GBP30.7, down 47.5% YoY due to the absence of disposal profit in 3Q11. YTD overall REVPAR was up 4.9%, with a particularly strong showing from London (up 10.2% YoY) from the Olympic games. Maintain BUYwith an unchanged fair value estimate of S$13.10 (15% RNAV disc.). (Eli Lee) MORE REPORTS KSH Holdings: Healthy earnings and dividends growth KSH reported 2QFY13 PATMI of S$9.8m, up a whooping 90% YoY mainly due to increased contributions from the construction business and project recognition from Cityscape@Farrer Park. We judge this set of results to be mostly in line with expectations as 1HFY13 PATMI now made up 46% of our FY13 forecast. We note the pace of profit recognition at Cityscape@Farrer in 2QFY13 (through share of results of associates) was somewhat below expectations - S$2.1m versus an expected S$3.5m-S$4.5m - but this was offset by higher profits from the construction segment. Management also announced an interim dividend of 1.35 S-cents, up 35% from a 1.0 S-cent interim dividend last year. KSH's order book continues to be healthy at S$375m as of end Sep 12, down 10% QoQ versus S$416m as of end Jun 12. Maintain BUY with an unchanged S$0.50 fair value estimate (50% discount to RNAV). (Eli Lee) Olam Int'l: 1QFY13 results mostly in line Olam International Limited (Olam) reported 1QFY13 revenue of S$4689.1m, though up 45% YoY, it was down 9% QoQ; but still met 24% of our full-year forecast. Reported net profit came in at S$43.2m, up 26% YoY but down 61% QoQ. We estimate that core earnings (excluding financial and biological revaluation gains) fell 16% YoY and 18% QoQ to S$28.4m, meeting around 8% of our FY13 estimate; but we still deem its results to be in line as 1Q typically contributes just 5-10% of its full-year earnings due to the unique seasonal pattern of its portfolio. As its results were mostly in line with our forecast, we are keeping our estimates unchanged. As such, our fair value also remains at S$1.80, or 12.5x FY13F EPS. Given the limited upside, we maintain our HOLD rating. (Carey Wong) Swiber Holdings: First dividend since FY05 Summary: Swiber Holdings (Swiber) reported a 92.6% YoY rise in revenue to US$265.3m but saw a 45.8% fall in net profit to US$7.3m in 3Q12, such that 9M12 net profit accounted for about 80% of our full year estimates, within expectations. Gross margin declined from 16.6% in 3Q11 to 14.1% in 3Q12, but was similar to 2Q12's 14.2%. Meanwhile, net debt to equity rose from 0.89x in Jun 2012 to 1.00x in Sep 2012. As of Nov 2012, Swiber's order book stood around US$1.4b vs. US$1.6b as at Aug. The group has also proposed an interim dividend of S$0.01/share. Meanwhile, we would be monitoring the group's operating cashflows. Maintain HOLDwith slightly lower fair value estimate of S$0.65 (prev. S$0.66). (Low Pei Han) STX OSV: Subdued 3Q STX OSV reported a fairly muted set of 3Q12 results that were below ours and the street's expectations. 3Q revenue and net profit to shareholders declined by 27% and 39% YoY to NOK 2.5b and NOK 228m respectively. On a sequential basis, revenue and net profit fell by 26% and 18% respectively. The weaker performance in 3Q12 was mainly due to slower pace of revenue recognition during the tail end of shipbuilding. Its yards reported generally stable operations, but the slow order intake (only NOK 900m in 3Q) may lead to under-utilization in its Norwegian yards in 2013. In view of this and the weaker-than-expected 3Q results, we reduce our fair value estimate to S$1.69 (previously S$2.00), Maintain BUY.(Chia Jiunyang) Valuetronics Holdings: Dearth of near-term catalysts Valuetronics Holdings Limited's (VHL) 2QFY13 PATMI plunged 88.5% YoY to HK$3.3m as it incurred hefty one-off termination expenses and provisions due to the cessation of its Licensing business. Revenue from continued operations was flat at HK$595.5m, or 11.6% below our forecast. However, we estimate that core PATMI came in at HK$31.5m, a 34.1% YoY increase, which exceeded our HK$26.2m projection. Looking ahead, we believe that sales from its largest customer would likely moderate, while there is also a strong sense of caution amongst its major customers. We trim our FY13 and FY14 revenue estimates by 9.7% and 10.6%, but raise our core PATMI forecasts by 8.0% and 6.5%, respectively, on higher margin assumptions. Applying a lower 4x (previously 4.5x) peg and rolling forward our valuations to blended FY13/14F core EPS, our fair value estimate falls from S$0.21 to S$0.20. While estimated 8.9% yield is attractive, we maintain HOLD given the lack of near-term catalysts. (Wong Teck Ching Andy) Viz Branz Limited: Faith will be rewarded Viz Branz (VB) reported a decent 1Q13 performance with continued margin improvements. Although revenue declined slightly, PATMI grew 17.4% YoY to S$4.5m following favourable raw material costs and effective cost control measures. With the performance coming in within our expectations, our FY13 outlook for VB remains unchanged, and we retain our fair value estimate of S$0.74. While there is no update on further share purchases by Lam Soon, we reiterate our optimism that an eventual general offer will materialize in the near-term. Given the recent price correction of the counter - and a supportive price base of S$0.735 from Lam Soon's partial stake purchase - we feel that an investment opportunity has presented itself. With a potential upside of nearly 10%, we upgrade VB to BUY. (Lim Siyi) Midas Holdings: 3Q12 net loss wider than expected Midas Holdings (Midas) reported a 21.8% YoY dip in its 3Q12 revenue to CNY202.7m, which was 6.0% below our projection. As a result of higher operating expenses, finance costs and a share of loss of CNY7.0m from its associated company, Nanjing SR Puzhen Rail Transport, Midas registered a loss before tax of CNY1.6m, which matched our estimate. However, net loss of CNY6.1m (3Q11: CNY27.4m PATMI) came in worse than our CNY1.3m forecast due to higher-than-expected income tax expenses. Midas' net gearing ratio also increased from 2.2% in 3Q11 and 22.5% in 2Q12 to 23.7% in 3Q12 as it increased its borrowings to finance its working capital requirements and capacity expansion plans. We expect this to translate into higher finance costs for the group in 4Q12 and FY13 and will thus adjust our estimates accordingly. More details will be provided after the analyst conference call. We still opine that FY12 would be a non-event for Midas and investors should instead focus on the likelihood of a recovery in its business operations in FY13, in line with the Chinese government's commitment to expand its rail transport system. We maintain our BUYrating but our S$0.505 fair value estimate is under review. (Wong Teck Ching Andy) KS Energy: Another profitable quarter KS Energy (KSE) reported a 21.9% YoY rise in revenue to S$161.3m and a net profit of S$14k in 3Q12 vs net loss of S$11.5m in 3Q11. 9M12 revenue and operating profit accounted for 80% and 73% of our full year estimates. 9M12 net profit was also within expectations, amounting to S$391k vs our full year estimate of a net loss of S$3.5m. Revenue growth was driven by the distribution business in 3Q12, while the drilling segment had a relatively stable quarter. More assets are expected to be deployed over the next 12 months, and we expect the earliest signs of a more significant recovery only in 2Q13. Pending a call with management, we maintain our HOLD rating but put our fair value estimate of S$0.83 under review. (Low Pei Han)

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

NEWS HEADLINES - US stocks slid further on Wednesday as worries about the fiscal cliff continued to weigh heavily on sentiment. The Dow slumped 1.5% to 12,570.95, despite surprisingly good results from Cisco Systems, while the S&P 500 Index fell 1.4% to 1,355.49 and the Nasdaq ended 1.3% lower at 2,846.81. - Otto Marine reported 3Q12 PATMI of US$4.7m, reversing a US$16.2m loss a year earlier. The improvement was supported by an 84% YoY jump in revenue to US$78.4m, with the increase coming mainly from its chartering and subsea services segments.