HSBC starts Mapletree Greater China Trust at Neutral

Stock Name: MapletreeGCC
Company Name: MAPLETREE GREATER CHINACOMM TR

Research House: HSBC

Price Call: HOLD

Target Price: 1.10

HSBC initiates Mapletree Greater China Commercial Trust (RW0U.SG), or Magic, at Neutral with $1.10 target.

It calls Magic's portfolio "best in class," on the quality of tenants and size, offering a quality Greater China commercial-property exposure. It expects the portfolio to see steady rental growth on the two assets' relatively resilient nature, high occupancy levels and periodic rental step-up provisions.

"We believe Magic is well-positioned to enhance rental growth via asset enhancements and/or acquisitions, both of which should be supported by the track records of Magic's management and sponsor." It estimates FY14-15 DPU growth at 7.2% and 6.7% respectively, with the trust offering fiscal-FY14-15 dividend yields of around 5.2%-5.5% at the current share price.

But based on HSBC's target price, the stock only offers an 11% potential return including forecast dividend yield, which isn't high enough to clear the house's "hurdle rate" for a volatile Singapore stock, leading to the Neutral call. The stock is down 0.5% at $1.045.

 

SG: MARKET PULSE: Hyflux, ComfortDelgro, Midas (10 Apr 2013)

Stock Name: Hyflux
Company Name: HYFLUX LTD

Research House: OCBC

Price Call: HOLD

Target Price: 1.44

MARKET PULSE: Hyflux, ComfortDelgro, Midas

10 Apr 2013

KEY IDEA Hyflux: China back on radar screen Summary: Hyflux recently announced that its subsidiary - Hyflux Investment Consultancy and Management Service (Tianjin) Co - has signed two memoranda of understanding (MOUs) with the prefectural governments of Chuxiong and Qujing in Yunnan province to develop water and environmental projects in these two cities. Management estimates the project in Chuxiong to be less than RMB2b and Qujing to be ~RMB1.2b. While it is still early days yet, we view the MOUs as a positive development as it suggests that China is back on the radar screen. For now, we will maintain our HOLD rating and S$1.44 fair value on the stock; but we do see room for re-rating should these MOUs translate into actual contracts. (Carey Wong) MORE REPORTS ComfortDelGro: Now joint-second in London ComfortDelGro's acquisition of a portion of FirstGroup plc's London bus business for approximately S$109m will increase its London bus fleet significantly by 494 to 1,700, and bring its market position to joint-second alongside Arriva London with a market share of around 19% (previously 12%). In addition, its UK bus revenue and operating profit should increase by ~37% as a result (assuming FY12 figures). With the outlook for ComfortDelgro's overseas ventures in FY13 remaining positive, our focus shifts domestically where we expect a fare increase to materialise by mid-2Q13, which we feel much of the street has already priced in. Pending its upcoming 1Q13 results, we maintain our HOLDrating on ComfortDelgro with an unchanged fair value estimate of S$1.95. (Lim Siyi) Midas Holdings: Secures S$17.3m in orders for Singapore MRT train parts Midas Holdings announced last evening that it has secured S$17.3m (~CNY86.5m) worth of orders from longstanding customer Alstom Transport S.A. This entails the supply of train car body parts for 18 train sets (or 108 train cars) for Singapore's North East Line and 24 train sets (or 72 train cars) for the Circle Line. Delivery is scheduled to take place from 2013 to 2015.This is Midas' second international contract win of the year and helps to boost its total orders won YTD to ~CNY379m, already higher than the CNY325m in orders won for the whole of 2012. Given that the Singapore government has committed to spending ~S$1.75b from 2013 to 2019 to upgrade and purchase assets for its rail system, we believe that future contract wins for similar projects are possible for Midas. We retain our forecasts as we have already assumed such contract wins in our assumptions. Maintain BUY and S$0.595 fair value estimate on Midas, based on 1.2x FY13F P/B. (Wong Teck Ching Andy)

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

NEWS HEADLINES - The Dow Jones Industrial Average shook off early weakness Tuesday and pressed on to another record close, led by strong gains in tech shares Microsoft and Intel. - KPMG Corporate Finance, the independent financial adviser (IFA) to the takeover of WBL Corporation, has rejected United Engineers' S$4.15 per share offer for the company as "not fair from a financial point of view". - The judicial managers of Poh Lian Construction are looking for buyers for the troubled construction firm and have already received several expressions of interest. - Frasers Centrepoint and Lum Chang have launched Twin Fountains, a 418-unit EC, located at the junction of Woodlands Avenue 6 and Woodlands Drive 16. - Asia should continue to enjoy solid economic growth this year and next, but efforts by the world's most advanced economies to reflate their flagging economies could touch off inflation and asset bubbles in developing Asian nations, the Asian Development Bank cautioned. - Most used car dealers are enjoying the government's 60-day reprieve, but they are now looking beyond clearing their stocks and hoping that financing restrictions will be eased for their market segment.

OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: Cordlife
Company Name: CORDLIFE GROUP LIMITED

Research House: Phillip Securities

Price Call: BUY

Target Price: 0.84

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

Research House: OSK

Price Call: BUY

Target Price: 2.10

Stock Name: Wilmar
Company Name: WILMAR INTERNATIONAL LIMITED

Research House: DBS Vickers

Price Call: HOLD

Target Price: 3.72

Market Compass

09 April 2013~ Good Morning Singapore!

Singapore Idea Snippets:

09 April 2013~ Good Morning Singapore! Central Execution Team - The Excellence of Execution This product is made available by your Central Execution Team, for you as TRs of OCBC Securities to help you with your business and therefore it is confidential and only for internal circulation. It is not intended for onward circulation to non-OSPL TRs, clients or any other third party in this or any other version. Neither is this intended to be relied upon as a sole basis for any recommendation. TRs must also consider their clients' investment objectives, financial position and needs when intending to make or making any recommendation. For the front desk, by the front desk. All feedback to make this a better product is welcome. Global Flash: While You Were Sleeping Source: Marketwatch Quote for the day :Family is not an important thing. It's everything. - MICHAEL J. FOX Singapore: The Day Ahead SINGAPORE DAYBOOK:China Q2 GDP could be hit if bird flu worsens HONG KONG] China's economic growth in the second quarter will be under pressure if the spread of the H7N9 avian influenza worsens, according to some economists. While the bird flu situation is not expected to be as bad as the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003, "we still would want to highlight a few downside risks facing the economy", Liu Ligang, chief Greater China economist at the Australia & New Zealand Banking Group Ltd, said in a research report yesterday. First, the tourism industry could be hit hard amid the uncertainties, Mr Liu said. Second, the bird flu will also have a negative impact on the agricultural sector and increase the inflation outlook as the supply of meat is likely to decline in the medium term. Thirdly, investor sentiment is likely to affect equity markets, which could remain weak in the foreseeable future, Mr Liu said. MARKET SCOOP PE fund mulls buying STX pan Ocean OCBC hikes chairman's fee HPH Trust's HK port resumes operations; dockers to meet with management CapitaLand's The Ascott wins Nanjing contract Maybank expects strong Q3 for SGX, raises target price MIIFto hold SGM on April 30 to seek nod for Taiwan cable TV stake sale S'pore GDP barely grew in Q1 as weakness in manufacturing drags PSDto keep salaries; National Bonus to replace GDP bonus DBS VICKERS Securities says... WILMAR INTERNATIONAL | HOLD | TP: S$3.72 We continue to monitor the mass culling of poultry flocks in China; no significant impact on soybean crush margins thus far Elsewhere, we estimate Indonesian palm oil gross refining margins have now dropped to US$45/MT from US$77 in Dec12, while Malaysian margin are flat at US$48 Although we are projecting only US$31-33/MT pretax margins, there is downside risk if we impute trade barrier costs (i.e. Indian import tax) Our initial margin assumptions were aggressive; we now cut Palm & Lauric pretax margins to US$26-27/MT after imputing higher trade costs All in, we cut Wilmar's FY13F/14F/15F earnings by 8%/8%/4%, respectively, and trimmed our DCF-based TP to S$3.72/share, implying 15.7x FY13F PE Despite near-term challenges, Wilmar's long term growth outlook is intact, led by recovering CPO prices, expansion in branded consumer, sugar origination and investments in Africa PHILLIP Securities says... CORDLIFE GROUP LTD | BUY | TP: S$0.84 With increasing awareness of cord blood banking, we expect market penetration of Singapore and Hong Kong to improve materially over the next 3yrs We believe that the Singapore government would keep policies accommodative to stimulate the current low level of birth rates (TFR target: 1.4-1.5 vs 2012E: 1.28-1.30) in the country We expect the strong cash generated to sustain a payout ratio of c.60% in the next 3yrs Cordlife announced a strategic alliance with Cordlabs Asia to offer umbilical cord tissue banking services beyond its current market in Hong Kong The alliance would allow Cordlife to provide the services in India, Indonesia, Malaysia, Philippines, Singapore and Hong Kong on an exclusive basis and in Thailand on a non-exclusive basis Acquisition of assets from CBB would drive geographical diversification into emerging markets Given the defensive nature and positive growth outlook, we believe that the current P/E multiple of 15X undervalues the stock of Cordlife At our target price of S$0.84, the stock would trade at a FY14/15E P/E of 19.6/17.4X respectively DMG OSK Securities says... SUNTEC REIT | BUY | TP: S$2.10 At its last results briefing, SUN's management indicated that 83% and 37% of Suntec City's Phase 1 and Phase 2 AEI space respectively have been pre-committed While we speculate Phase 1 pre-commitment rate to have exceeded 90%, we expect the earnings for SUN to be the weakest between 1Q13 and 2Q13, a period when the Phase 1 has not commenced operations while Phase 2 is closed in preparation for the upcoming AEI However, as we approach the end of Phase 1 AEI, we expect SUN to re-rate as its outlook brightens on the back of a well executed AEI SUN, which is currently trading at 0.9x P/B is one of the few S-REITs that are still trading at a discount to book value Currently, SUN is trading at a dividend yield of 5.2% and 5.7% of FY13's and FY14's forecasted yields respectively We have upgraded our rating on SUN to a BUY with a TP of SGD2.10 on the back of a clearer outlook, positive rental reversion and high pre-commitment rates for the new space

SG: MARKET PULSE: Biosensors, Fortune REIT, Keppel Corp (9 Apr 2013)

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

Research House: OCBC

Price Call: BUY

Target Price: 1.60

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

Research House: OCBC

Price Call: BUY

Target Price: 7.28

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED

Research House: OCBC

Price Call: BUY

Target Price: 12.68

MARKET PULSE: Biosensors, Fortune REIT, Keppel Corp

9 Apr 2013

KEY IDEA Biosensors International Group: Challenges apparent, but seeking market share gains Biosensors International Group's (BIG) regional peers have faced headwinds in the Chinese drug-eluting stent market, as highlighted in their recent results announcement. We believe that these factors, such as a slowdown in growth of PCI surgeries, would also have an adverse impact on BIG. However, we expect BIG to continue its market share gains in other key markets such as the EMEA region. BIG is also stepping up its collaboration with its licensee Terumo Corp to address the recent decline in licensing revenue from Japan. Nevertheless, we believe that a further depreciation of the Japanese Yen due to stimulus measures by the Bank of Japan could exacerbate this problem. We thus trim our FY14F revenue and core PATMI forecasts by 0.6% and 1.6%, respectively. However, we maintain our BUY rating although our FCFE-derived fair value estimate declines marginally from S$1.63 to S$1.60. (Wong Teck Ching Andy) MORE REPORTS Fortune REIT: Strong fundamentals The growth in HK's retail sales has picked up significantly since 4Q12. Combining the first two months of 2013 to eliminate distortions from the timing of Chinese New Year, retail sales climbed up 15.8% in value. Robust retail sales will continue to underpin the growth in retail rents throughout HK. The media has reported that a group has called for the boycott of Park'N Shop supermarket chain, which is part of Li Ka-shing's Hutchison Whampoa Ltd, in support of dock workers who are striking for better work conditions. Park'N Shop is FRT's top tenant, accounting for 8.0% of the REIT's total gross rental income in Dec 2012. According to FRT management, businesses are running as usual and impact to the Park'n Shop outlets in FRT's malls has not been seen. Management has indicated that 2013's rental reversions are likely to be in the mid-teen percentages. FRT has a low gearing of 23.4% and no refinancing needs till 2015. We are maintaining our fair value of HK$7.28 and BUYrating on FRT. (Sarah Ong) Keppel Corporation: Market for premium jackups is strong Keppel Corporation (KEP) announced that its O&M arm has secured a contract to construct a KFELS B Class jackup rig from Ensco. The construction cost, together with the commissioning, systems integration testing and project management is expected to be US$225m. When completed in 1Q15, this will be the fourth KFELS B Class Bigfoot unit in Ensco's fleet. With this latest order, KEP has won about S$1.85b of new orders YTD, accounting for 37% of our full year estimate. Looking ahead, we expect order flows for such premium jackups to continue. Indeed, Ensco's Chairman, President and CEO also commented that the market for premium jackups is "very strong", and "customer demand is broad-based for high-specification jackup rigs". Maintain BUY with S$12.68 fair value estimate on KEP. (Low Pei Han)

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

NEWS HEADLINES - Hutchison Port Holdings Trust (HPHT) said industrial actions are continuing but operations are gradually returning to normal at its Kwai Tsing port of Hong Kong. - Global Logistic Properties (GLP) has pre-leased about 463,000 sqft of space at two of its upcoming business parks in China, bolstering its market presence in the country. - A private equity fund set up by Korea Development Bank (KDB) has just launched a process to review a possible acquisition of Korean shipper STX Pan Ocean. - CNA Group has been awarded a contract worth almost $10m to design, supply and install an Internet protocol management system and extra low voltage system for MediaCorp's Media Complex at Mediapolis @ one-north Buona Vista. - National Development Minister Khaw Boon Wan said construction timelines for BTO flats have not been delayed so far by a further tightening of foreign labour.

SG: MARKET PULSE: Breadtalk, Chinese Shipyards (8 Apr 2013)

Stock Name: BreadTalk
Company Name: BREADTALK GROUP LIMITED

Research House: OCBC

Price Call: SELL

Target Price: 0.77

Stock Name: Yangzijiang
Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD

Research House: OCBC

Price Call: HOLD

Target Price: 0.95

Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD

Research House: OCBC

Price Call: HOLD

Target Price: 0.95

MARKET PULSE: Breadtalk, Chinese Shipyards

8 Apr 2013

KEY IDEA BreadTalk Group: Not fully baked yet Summary: The 12% correction in BreadTalk's share price over the past two days has helped to temper the sudden spike from late-Mar, and we take this opportunity to caution investors against getting too carried away. In our view, a takeover by Minor International is remote at this juncture. Despite impressive yearly double-digit revenue growth, BreadTalk has yet to translate the success to its operating margins. Although its ongoing expansion plans are partly to blame, the pace of the margin declines does create some concerns over its operational efficiencies in the long-run. In addition, with FY13 PATMI and dividend growth unlikely to differ much from recent performances, we deem BreadTalk expensive at current price levels. Keeping our fair value estimate of S$0.77, we downgrade BreadTalk to SELL and urge investors to take profit. (Lim Siyi) MORE REPORTS Chinese shipyards: Industry profitability remains under pressure Summary: The share price performances of COSCO Corp (Singapore) and Yangzijiang Shipbuilding (YZJ) have been uninspiring in recent history. COSCO's share price has fallen by about 21% in the past one year, while YZJ's has decreased by about 25%. We believe this is mainly due to a lack of positive catalysts amidst the difficult operating environment in China. In terms of offshore projects, Chinese yards still lack the established track records of their Asian competitors, but their organization, efficiency and sophistication are on the rise. To compete, the Chinese yards are going after orders at lower margins and back-end loaded payment terms. This inevitably leads to lower profitability and higher working capital requirements. Over the near- to medium- term horizon, we believe that the industry dynamics is unlikely to change significantly. Maintain HOLD ratings for both COSCO (FV: S$0.90) and YZJ (FV: S$0.95). (Chia Jiunyang)

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

NEWS HEADLINES - Interra Resources has completed its second producing well in a Myanmar oil field and has begun drilling on the third. - Olam International has decided not to pursue its libel lawsuit against US short-selling firm Muddy Waters and its founder Carson Block. - Park Hotel Group, which announced the S$300m sale of its Park Hotel Clarke Quay over the weekend, is understood to have put some of its other hotels on the market as well. Industry players say these include its two remaining Singapore hotels - Grand Park City Hall in Coleman Street and Grand Park Orchard. - Temasek Holdings has set up a company, Pavilion Energy Pte Ltd, with an initial authorised capital of S$1b, to invest in the liquefied natural gas (LNG) industry. - Despite poor export and output numbers in the first quarter, easing monetary policy is unlikely to be an option for the central bank this Friday. Economists and currency analysts expect the MAS to keep the SGD on its current path of a slightly steeper appreciation relative to a basket of trading partners' currencies to ward off inflationary pressures.

OSPL - Good Morning S'pore - Central Dealing Desk

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

Research House: DBS Vickers

Price Call: BUY

Target Price: 1.16

Stock Name: SPH
Company Name: SINGAPORE PRESS HLDGS LTD

Research House: StanChart

Price Call: BUY

Target Price: 4.99

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST

Research House: OCBC

Price Call: BUY

Target Price: 2.32

Market Compass

08 April 2013~ Good Morning Singapore!

Singapore Idea Snippets:

08 April 2013~ Good Morning Singapore! Central Execution Team - The Excellence of Execution This product is made available by your Central Execution Team, for you as TRs of OCBC Securities to help you with your business and therefore it is confidential and only for internal circulation. It is not intended for onward circulation to non-OSPL TRs, clients or any other third party in this or any other version. Neither is this intended to be relied upon as a sole basis for any recommendation. TRs must also consider their clients' investment objectives, financial position and needs when intending to make or making any recommendation. For the front desk, by the front desk. All feedback to make this a better product is welcome. Global Flash: While You Were Sleeping Source: Marketwatch Quote for the day :Success is a lousy teacher. It seduces smart people into thinking they can't lose. - BILL GATES Singapore: The Day Ahead SINGAPORE DAYBOOK:Park Hotel Grp seen seeking $1b for Orchard Rd hotel. Total price tag pegs hotel's value in the high-$1m range per room. [SINGAPORE] Park Hotel Group, which announced a $300 million or $893,000 per room sale of its Park Hotel Clarke Quay to Ascendas Hospitality Trust over the weekend, is understood to have put some of its other hotels on the market as well. Industry players say these include its two remaining Singapore hotels - Grand Park City Hall in Coleman Street and Grand Park Orchard (along with its retail podium Knightsbridge). The group is said to be seeking more than $1 billion for the latter asset or a whopping sum in the high-$1 million range per room - which if achieved would reprice the Singapore hotel market, according to industry players. The asset comprises the 308-room Grand Park Orchard and about 74,000 sq ft net lettable area of retail space - leased to retailers such as Abercrombie & Fitch, Topshop/Topman, Brooks Brothers, Tommy Hilfiger, Dickson Watch & Jewellery, and The Hour Glass. MARKET SCOOP Interra to drill new well in Myanmar Singapore's Temasek launches new firm for LNG investments MCT issues S$70 million fixed rate notes Govt closes car loan loopholes Olamwithdraws lawsuit against Muddy Waters and its founder Fu Yu seeks trading halt on SGX's query on price, volume surge DBS VICKERS Securities says... PAN-UNITED CORPORATION | BUY | TP: S$1.16 We believe the port business is currently undervalued Our current valuation of CXP port stands at 7x FY13F earnings vs peer average of China listed ports at 12.2x We believe placing 12.2x earnings multiple on the port business is fair to our valuation of PAN as it reflects a more representative value to assets that the company holds Our analysis into the MRT construction projects suggests that we may see concurrent construction for five MRT lines at various stages in 2015 We expect PAN to re-rate to +2SD of its mean valuation ahead of the construction peak in 2015. We conservatively re-peg CXP's value in PAN's SOTP valuation from 7x PE to 12x, in line with China-listed ports We raise PAN's TP to S$1.16, implying 13.9x FY13F PE, which is slightly above +1SD but below +2SD of its mean valuation STANDARD CHARTERED Securities says... SINGAPORE PRESS HOLDINGS | OUTPERFORM | TP: S$4.99 SPH announced an agreement to acquire all the issued shares of Sgcarmart, a vehicle classifieds site and car auction platform We welcome the deal as it provides synergies to SPH‟s online classifieds business The deal, which involves acquisition of the entire issued capital, will be fully financed by cash SPH already owns the online car portal, STCars, in addition to STJobs, STProperty and STClassfieds In our view, the Sgcarmart acquisition will tighten SPH‟s grip on the online classifieds market The proposed REIT listing would strengthen SPH‟s dividend stream and also enhance its value Its 6.0% (2013E) yield is the highest among classic Singapore yield plays, and is above the peer group average of 37% OCBC Securities says... CAPITAMALL TRUST | BUY | TP: S$2.32 CapitaMall Trust (CMT) has been a clear laggard within the S-REITs space, staying flat YTD versus an average of 11.0% increase in unit prices for its local retail peers (FTSE ST REIT Index: 7.2% YTD) We believe this is unjustified given its portfolio of 15 quality retail malls, which are strategically located in the suburban areas and downtown core of Singapore, and its relentless efforts in optimizing its yield via asset enhancement initiatives (AEIs) According to CBRE, the average rents in prime Orchard Road rose for the first time (up 2% QoQ) in 1Q13 after staying flat since 3Q11 While the suburban retail will see a substantial amount of space (~1.6m sqft) coming online in 2013, CBRE notes that retailers are still upbeat about the suburban market (1Q13 rents flat QoQ) This is consistent with our view that both Orchard Road and suburban rents may possibly remain firm in 2013 We are keeping our S$2.32 fair value unchanged and maintaining BUY on CMT as we expect the valuation gap to narrow between CMT and its peers

SG: MARKET PULSE: Long SPH/Short STH, CMT, Yoma, STE (5 Apr 2013)

Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST

Research House: OCBC

Price Call: BUY

Target Price: 2.32

MARKET PULSE: Long SPH/Short STH, CMT, Yoma, STE

5 Apr 2013

KEY IDEA Conviction Idea: Pair trade - Long SPH / Short STH We recommend a long SPH/short STH pair trade. Investors would pick up a 63 bps dividend yield spread (to offset transactions costs) and gain significant upside exposure to the scenario that SPH lists its REIT. Two bases for our trade: first, we believe SPH's 63 bps spread over STH is attractive. Newspapers are generally perceived to have weaker prospects than telcos but SPH has a virtual monopoly in its market while STH perennially competes against the much larger SingTel and has been losing market share in both its mobile and Pay TV segments. Second, from our calculations, we believe a SPH REIT listing scenario is realistic given the current yield/valuation dynamics of its assets and the size of its portfolio. Assuming SPH retains a 51% stake in the REIT, we see potential divestment gains of S$625m to S$744m or 39 to 46 S-cents per share. This could consequently lead to a special dividend and/or distribution in specie of REIT units for SPH shareholders. (Eli Lee) MORE REPORTS CapitaMall Trust: Deep value at current price CapitaMall Trust (CMT) has been a clear laggard within the S-REITs space, staying flat YTD versus an average of 11.0% increase in unit prices for its local retail peers. We believe this is unjustified given its portfolio of 15 quality retail malls and its relentless efforts in optimizing its yield via asset enhancement initiatives. The operating landscape in the retail space also appears sanguine thus far. According to CBRE, the average rents in prime Orchard Road rose for the first time in 1Q13 after staying flat since 3Q11. While the suburban retail will see a substantial amount of space coming online in 2013, CBRE notes that retailers are still upbeat about the suburban market. This is consistent with our view that both the Orchard Road and suburban rents may possibly remain firm in 2013. We are keeping our S$2.32 fair value unchanged and maintaining BUY on CMT as we expect the valuation gap to narrow between CMT and its peers. (Kevin Tan) Yoma Strategic Holdings: Forming consortium to bid for mobile license Yoma announced that it has formed a consortium with FMI, its affiliate in Myanmar, and Digicel Group and Quantum Strategic Partners to bid for one of the two mobile licenses expected to be awarded by the Myanmar Government later this year. The consortium has submitted its pre-qualification bid in Nay Pyi Taw yesterday as the first part of the mobile license process. We understand that Yoma and FMI has joined the consortium through a newly created 80:20 joint venture YSH Finance Ltd, but Yoma's eventual effective stake in the consortium is yet unclear. Also, we expect fierce competition for the mobile licenses from a host of contenders, including a Vodafone-China Mobile tie-up and other major telco players such as SingTel, Telekomunikasi Indonesia, Malaysia's Axiata Group Bhd, Norway's Telenor ASA and India's Bharti Airtel Ltd. Since we have downgraded Yoma to a SELL on 1 Feb 2013 with a fair value estimate of S$0.71, the share price has corrected 17.2% from S$0.90 to S$0.745. We now put our rating and fair value estimate UNDER REVIEW. (Eli Lee) ST Engineering: ST Electronics won S$151m of contracts in 1Q13 ST Engineering (STE) announced that its electronics arm, ST Electronics, has secured about S$151m of contracts. This is in line with our expectations. The contracts include S$65m in the rail electronics market with projects for mass rapid transit (MRT) projects in Malaysia, Taiwan and North America. S$78m in contracts was secured under the satcom and sensor business segment and S$8m was under smart utilities solutions. We maintain our fair value estimate of S$4.12 and HOLDrating on STE. (Sarah Ong)

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

NEWS HEADLINES - US stocks climbed Thursday as optimism over monetary stimulus in Japan outweighed news that US jobless claims rose to a four-month high. - Amara Holdings has entered into a MOU to develop hotels and engage in other real estate projects in Myanmar. The first project involves establishing a JV to develop and operate a hotel located in Dagon Township, Yangon. The proposed total investment is ~US$50m. - Metro Holdings has entered into an option to sell a property at 100H Pasir Panjang Rd for a purchase price of S$39.8m. - Riverstone Holdings has acquired a piece of land of 30 acres located at an industrial estate in Taiping, Malaysia for a purchase price of RM12.4m, to support business expansion.