Pacific Radiance coverage started at "hold", 64-cent target by KGI Fraser

Stock Name: Pacific Radiance
Company Name: PACIFIC RADIANCE LTD.

Research House: KGI Fraser

Price Call: HOLD

Target Price: 0.64

SINGAPORE (March 31): KGI Fraser Securities has started coverage on Pacific Radiance with a "hold" rating and price target of 64 cents, based on six times projected FY2015 earnings.

The company, which owns and operates offshore support vessels and provides subsea services, will be dragged down by its subsea business this year as a result of reduced demand, according to KGI analyst Joel Ng.

The subsea unit accounted for 27% and 19% respectively of Pacific Radiance's revenues in the last two years.

Nam Cheong coverage started at "sell", 27-cent target by KGI Fraser

Stock Name: Nam Cheong
Company Name: NAM CHEONG LIMITED

Research House: KGI Fraser

Price Call: SELL

Target Price: 0.27

SINGAPORE (March 31): KGI Fraser Securities has started coverage on Nam Cheong with a "sell" rating and price target of 27 cents, based on six times projected 2015 earnings.

The offshore support vessel builder's 40% annual earnings growth in the last three years is "a thing of the past" as the market is expected to face an oversupply of such vessels this year, according to Nam Cheong analyst Joel Ng.

"We see pressure on margins as it sells its built to stock vessels in a much weaker market that we expect to persist well into 2015," he wrote in a note today.

Ezion started at "hold", $1.12 target by KGI Fraser Securities

Stock Name: Ezion
Company Name: EZION HOLDINGS LIMITED

Research House: KGI Fraser

Price Call: HOLD

Target Price: 1.12

SINGAPORE (March 31): KGI Fraser Securities has started coverage on Ezion Holdings with a "hold" rating and a sum-of-parts price target of $1.12.

Once seen as "resilient" as its lift boats are mainly used in shallow waters, Ezion is increasingly at risk of seeing reduced demand for its service rigs amid weaker oil prices, according to KGI analyst Joel Ng.

"Low oil prices are slowing down new oil field developments, such that the only source of demand comes from redevelopment of existing fields," he wrote in a note today.

Sembcorp Marine cut to "reduce", target cut to $2.82 by CIMB

Stock Name: Sembcorp Marine
Company Name: SEMBCORP MARINE LTD

Research House: CIMB

Price Call: SELL

Target Price: 2.82

SINGAPORE (March 30): CIMB has downgraded Sembcorp Marine to "reduce" from "add", saying the rig builder is facing the beginning of an "order drought".

It also cut its price target from $3.39 to $2.82, based on 11 times projected 2016 earnings, after lowering its 2015 to 2017 earnings per share estimates by 6% to 21% to factor in fewer orders.

CIMB analyst Lim Siew Khee now expects SembMarine to secure just $1.2 billion worth of new orders this year, down from an earlier forecast of $2 billion.

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.

Venture Corp cut to "hold" by OCBC; target unchanged at $8.41

Stock Name: Venture
Company Name: VENTURE CORPORATION LIMITED

Research House: OCBC

Price Call: HOLD

Target Price: 8.41

SINGAPORE (March 26): OCBC Investment Research has downgraded Venture Corp to "hold" from "buy" as the stock has breached its price target of $8.41.

Even so, business prospects for the contract electronics manufacturer remain favourable, underpinned by continued growth in the global semiconductor industry, according to OCBC analyst Carey Wong.

Mapletree Industrial Trust started at "buy", $1.74 target by Maybank Kim Eng

Stock Name: Mapletree Ind Tr
Company Name: MAPLETREE INDUSTRIAL TRUST

Research House: Maybank Kim Eng

Price Call: BUY

Target Price: 1.74

SINGAPORE (March 26): Maybank Kim Eng has started coverage on Mapletree Industrial Trust (MIT) at "buy" and a price target of $1.74.

Two of MIT's build-to-suit projects - BTS Equinix and BTS-Hewlett Packard - will help offset risks stemming from Singapore's "below-trend" economic growth, according to Maybank Kim Eng analyst Joshua Tan.

MIT gets some 85% of its revenue from factories and 15% from business parks.