STX OSV jumps after order win

Stock Name: STXOSV
Company Name: STX OSV HOLDINGS LIMITED

Research House: DMG

Price Call: HOLD

Target Price: 1.20

Shares of Singapore-listed shipbuilder STX OSV Holdings (STXO.SI) rose as much as 4% on Wednesday to a one-month high after the company said it secured a contract worth 1.2 billion Norwegian crowns ($264.71 million) for the construction of a research vessel.

At 9:45 a.m., shares of STX OSV were 3.1% higher at $1.16 with about 4 million shares changing hands.

“The new order is a positive surprise,” said DMG & Partners in a report, adding that it now expects STX OSV's order wins so far this year to be more than 7.4 billion Norwegian crowns, boosted by the latest contract.

DMG also raised its fiscal 2011 earnings-per-share estimate for STX OSV by 7%, and increased its share-price target to $1.20 from $1.14. It kept its neutral rating on the stock.

Ascott Residence Trust rated 'hold' by DBS

Stock Name: AscottREIT
Company Name: ASCOTT RESIDENCE TRUST

Research House: DBS Vickers

Price Call: HOLD

Target Price: 1.13

DBS Vickers Securities in a Nov 28 research report says: "Ascott REIT has entered into a conditional sale and purchase agreement to acquire a 60% interest in 160-unit Citadines Shinjuku Tokyo from Mitsubishi Estate Co Ltd (MEC).

"Purchase consideration amounts to JPY 2.6 billion ($45.7 million), implying an initial yield of 4.5%yield. While this is lower compared against our estimated WACC of 7.3% for the REIT, as the acquisition will be fully funded by debt, it should be accretive to earnings. Post acquisition ART's gearing level is expected to head slightly upwards to 42% (vs 41% previously).

"While stock offers a relatively attractive yield of 8.6, there exists potential downside risk in the event of a worsening European crisis, given that 42% of its assets are in Europe. Our target price has been revised to $1.13. DOWNGRADE TO HOLD."

UMS Holdings rated 'increase exposure' by SIAS

Stock Name: UMS
Company Name: UMS HOLDINGS LIMITED

Research House: SIAS

Price Call: BUY

Target Price: 0.79

SIAS Research in a Nov 24 research report says: "UMS ended the quarter with cash, net of leases, of S$32.4m, which is equivalent to 9.43 cents per share. Net cash now accounts for 24.8% of UMS's market value.

"As UMS has no bank borrowings except for $3.56 million of finance leases, the company can lever its balance sheet to make acquisitions of decent size. While UMS may be setting aside cash for potential M&As, we expect the company to maintain its quarterly dividends as its cash conversion ratio remained high at 94% in 3Q 2011. In a nutshell, the company is paying dividends out of its cash flow, which is a sustainable policy.

"We have reduced our earnings forecast for FY2011 and revised our valuation downwards to 79 cents in view of the last two quarters' results. MAINTAIN INCREASE EXPOSURE."

Macquarie Int'l Infrastructure Fund rated 'buy' by DBS

Stock Name: MacqIntInfra
Company Name: MACQUARIE INT'L INFRA FUND LTD

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.64

DBS Vickers Securities in a Nov 28 research report says: "Over the years, MIIF has divested its non-Asian assets, and repaid corporate level loans with the sale proceeds, rendering a cleaner balance sheet with current net cash of about $115 million.

"The sale of stakes in other funds also eliminated the black box problem (assets with limited financial visibility) and the fund now focuses purely on key Asian infrastructure assets. MIIF paid out 3 cents dividend in FY2010. Post restructuring of its portfolio, MIIF is now guiding for 5.5 cents dividend per share in FY2011, based on expected cash flow generation plus existing cash reserves (2.75 cents already declared for 1H11).

"We expect this is achievable and given the healthy implied yield of close to 10.5% at current prices. Target price of 64 cents, based on DCF valuation of underlying assets. BUY (reinstating coverage)."

C&G Environmental Protection Holdings rated 'increase exposure' by SIAS

Stock Name: C&G EP
Company Name: C&G ENV PROTECT HLDGS LTD

Research House: SIAS

Price Call: BUY

Target Price: 0.21

SIAS Research in a Nov 28 research report says: "We like C&G exposure to the growing China waste to energy (WTE) industry which will benefit from rising waste generation per capita, rapid urbanization, limited land space around cities and energy shortage.

"Coupled with more upcoming projects over the next four years and preferential treatments such as better electricity tariff and tax reduction, the company is poised to benefit from these favorable industry developments. The company is merely trading at a FY12F P/B of 0.43X, which is significantly lower than its peers and does not reflect the industry's defensive nature.

"The company had also announced its intention to reward shareholders by distributing at least 20% of operating net profit between 2011 and 2013. Intrinsic value of 21 cents per share, upside of 61.5%. INCREASE EXPOSURE.

Tat Hong Holdings upgraded to 'outperform' by CIMB

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

Research House: CIMB

Price Call: BUY

Target Price: 0.77

CIMB in a Nov 28 research report says: "Tat Hong has finally turned the corner, with growth finding footing. Its Australian operations are set to prosper in 2H12 from an ongoing re-building programme. We believe the next stock catalyst will hinge on that, potentially throwing up positive surprises in 2H12.

"Apart from rebuilding work following floods in Queensland that will be rolling in the dough, the lucrative oil & gas (O&G) industry in Australia may commence some projects after delays.

Once commenced, utilisation and rental rates could climb for Tat Hong. Earnings estimates are unchanged, so is our target price of 77 cents (10x CY13 P/E). UPGRADE TO OUTPERFORM."

Global Logistics Properties rated 'outperform' by CIMB

CIMB in a Nov 29 research report says: "GLP is the largest modern logistics provider in Asia, with the largest GFA (sq m) in China and Japan. We estimate that core EBIT will rise by 29% to US$520 million by FY14 vs. FY11, backed by stable rents in Japan and a growing portfolio in China.

"Operating cash flows are expected to cover known capex needs; a high cash conversion rate (short development cycle) allows available surpluses to be swiftly redeployed for new investments. A low net gearing of 0.3x implies additional investment capacity of US$1.7 billion, by our estimates.

"Target price/RNAV of $2.24. It trades at a 20% discount to RNAV and at more attractive multiples than its logistics peers. OUTPERFORM (initiating coverage)."