MARKET PULSE - AsianBookie.Com Forums

15-Aug 2012 Wednesday 10:47 AM (4274 days ago)

Gold Member

Posts: 24638
Liked By: 14428
Joined: 16 Apr 12
Followers: 6

Tipsters
Championship:
Player has
not started

MARKET PULSE: CityDev, ST Eng, STX OSV, CSE Global, KSH, Dyna-Mac, ECS, KS Energy, Midas, Swiber, Wilmar, Global Palm

15 Aug 2012

KEY IDEA

City Developments Limited: Still healthy pace of residential sales
CDL reported 2Q12 PATMI of S$137.7m, down 38% YoY mostly due to a lower property development contribution and absence of disposal gains. Though YTD
figures appear to be tracking below pace, we are not overly concerned and expect maiden progress recognition from several substantially-sold
projects to roll in over 2HFY12. Take-up rates at launched projects remained healthy with 1,299 units sold in 1H12 (versus 809 in 1H11). The hotel
subsidiary M&C reported 1H12 PATMI of GBP58.4m - down 6% mostly due to refurbishments - though RevPar was up 4.6% on a like-for-like basis. Given
the current environment, we continue to view CDL as one of the best-of-class, amongst blue-chip developers, in terms of execution and strategy, that
is: sustaining earnings through effective land-banking while guarding the downside with a strong balance sheet (21% net gearing, S$2.3b cash).
Maintain BUYwith an increased FV of S$13.10 (15% RNAV disc.), versus S$11.53 previously, as we update listed holdings’ valuations and lower the RNAV
discount from 20%. (Eli Lee)

MORE REPORTS

ST Engineering: Strong order book lays 2H12 foundation
ST Engineering (STE) posted 2Q12/1H12 results that were generally in line with expectations. 1H12 EPS of 9.05 S cents formed 50% of ours and
consensus' estimate for FY12. STE's 2Q12 revenue climbed by 6% YoY to S$1.57b and PATMI rose by 10% YoY to S$143.1m. All sectors apart from
Aerospace posted higher revenues, and all sectors contributed higher pre-tax profits. STE's order book grew from S$12.2b to S$12.7b between end Mar
and end Jun 2012. The size of the 2Q12 order book compares even more favourably to 2Q11's order book of S$10.8b. We maintain our fair value estimate
of S$3.50/share and BUY rating on STE. (Sarah Ong)

STX OSV: Special dividend of 13 Scts
STX OSV reported a 21.6% YoY increase in revenue to NOK3.3b and a 2.6% YoY increase in net profit to NOK279m, such that 1H net profit represented
44% and 49% of ours and the street’s FY12F estimates. EBITDA margin decreased to 13.8% in 2Q12, compared to the exceptionally high 16.4% in the
year-ago period. The group suffered some delays in its Brazilian yard due to general yard overload, temporary supplier constraints and bottlenecks
in subcontracting capacity. Management has already taken measures to address these issues, and added that the financial impact has been largely
absorbed in previous quarters. Meanwhile, the group also announced a 13 S cts special interim dividend (1H11: 5 S cts interim dividend). We continue
to like STX OSV for its strong order pipeline and niche market position. Maintain BUYwith unchanged S$2.00 fair value estimate. (Chia Jiunyang)

CSE Global: Recovery underway
CSE Global reported a decent set of 2Q12 results that were in line with ours and the street’s expectations. 2Q revenue was S$144.2m, up 42% YoY, on
increased sales to USA, Europe/Middle East/Africa, while net profit was S$21.1m, helped by a S$10.0m one-off gain in disposal of associate company
eBworx. The group’s telecom division reverted to profitability during the quarter with profit after tax of S$0.7m. CSE Global’s balance sheet also
looked more stable as it lowered its gearing with cash proceeds from eBworx sale, and refinanced its short-term borrowing with a S$120m 3-year
banking facility. Maintain BUY with a higher fair value estimate of S$1.09 (previously S$0.80). (Chia Jiunyang)

KSH Holdings: Good kick-off to the year
KSH Holdings (KSH) announced 1QFY13 revenue of S$55.2m – 35% higher YoY mostly due to stronger construction revenues and $6.0m of progress
recognition from Cityscape. 1QFY13 PATMI was up 66% YoY to S$4.3m on the back of firmer performance from its construction segment, S$0.8m disposal
gains from the strata sale of one level of Tianxing Riverfront Square (Tianjin, China), and share of profits from associates reversing to a S$1.3m
gain from a S$0.8m loss in 1QFY12. We judge this set of results to be in line with expectations. Excluding the ~S$0.8m disposal gain, we estimate
core PATMI of S$3.5m in 1QFY13, constituting 24% of our FY13 forecast. We understand that KSH is actively seeking order book replenishment, though a
weaker outlook in the private construction segment and limited major catalysts ahead in CY12 could prove challenging. Maintain HOLD with a higher S
$0.26 fair value estimate, versus S$0.25 previously, as we update our valuation model with a firmer valuation for Tianxing Riverfront Square.(Eli
Lee)

Dyna-Mac Holdings Ltd: 2Q12 Net profit S$6.1m
Dyna-Mac Holding reported a sharp improvement in its 2Q12 results, with revenue of S$57.8m (1Q12: S$23.5m) and net profit of S$6.1m (1Q12: S$3.3m).
We believe this is due to the resumption of previously delayed orders. As the group expects to recognize most of its order-book (S$203m) by
year-end, we remain positive of its 2H12F performance. Pending a management briefing tomorrow, we keep our BUY rating but put our S$0.45 fair value
estimate under review. (Chia Jiunyang)

ECS Holdings: 2Q12 results below expectations
ECS Holdings (ECS) reported a 24.2% YoY decline in its 2Q12 PATMI to S$8.1m on the back of a 3.0% fall in revenue to S$823.6m. Excluding forex and
other exceptional items, we estimate that core earnings would have decreased 23.1% to S$7.4m. This set of results came in below our expectations.
For 1H12, revenue increased 2.0% to S$1,725.2m, forming 44.3% of our FY12 forecast. Core earnings slipped 29.8% (reported PATMI fell 32.5%) to S
$14.1m, or 40.3% of our full-year estimate. ECS’s gross margin declined 0.6ppt YoY to 4.5% in 2Q12, although this was an improvement vis-à-vis the
4.0% registered in 1Q12. The decline can be attributed to intense competition in the ICT industry and a change in sales mix as there was higher
revenue contribution from lower-margin media tablets and phone devices within its Distribution segment. We would likely adjust our earnings
estimates downwards, although we expect 2H12 to be stronger than 1H12. Our Buy rating and S$0.555 fair value estimate is currently under review
pending an analyst briefing with management. (Wong Teck Ching Andy)

KS Energy: 2Q12 sees a net profit
KS Energy (KSE) reported a 23.4% YoY fall in revenue to S$151.6m and a net profit of S$692k in 2Q12 vs. a net loss of S$5.5m in 2Q11. 1H12 revenue
and gross profit accounted for 50.3% and 50.7% of our full year estimates, respectively. Net profit was also within our expectations. Revenue in the
quarter was supported by the distribution business, which contributed 71.1% of total revenue. Meanwhile, the drilling division saw a 13% YoY fall in
turnover. 2Q12 marks the group’s first quarterly net profit after nine consecutive quarters of net losses, and results were also not boosted by any
significant one-off gains, unlike 1Q12. Pending a call with management, we maintain our HOLD rating and put our fair value estimate of S$0.85 under
review. (Low Pei Han)

Midas Holdings: Dismal results; cut in dividends
In line with its earlier profit guidance, Midas Holdings (Midas) reported a dismal set of 2Q12 results, with net profit plunging 97.5% YoY and 89.6%
QoQ to RMB1.6m. Revenue for the quarter was RMB219.8m, which represented a 30.0% YoY and 4.6% QoQ decline. The fall in net profit was attributed to
higher operating expenses and finance costs, as well as a RMB14.1m share of loss from its associated company, Nanjing SR Puzhen Rail Transport
(NPRT). This was the third time in the past four quarters which Midas had recorded a share of loss from NPRT. For 1H12, revenue dipped 26.2% to
RMB450.2m, or 46.0% of our FY12 forecast; net profit slumped 86.3% to RMB16.9m, forming just 14.8% and 13.9% of ours and the street’s full-year
estimates, respectively. Another disappointment came from a cut in interim dividend to 0.25 S cents/share (1H11: 0.5 S cents/share). Separately,
Midas also announced that NPRT won two metro contracts worth a combined RMB1.4b, with delivery scheduled from 2013 to 2016. We will provide more
details after the analyst conference call. Our Hold rating and S$0.30 fair value estimate is under review. (Wong Teck Ching Andy)

Swiber Holdings: 2Q12 results largely in line
Swiber Holdings (Swiber) reported a 27.1% YoY rise in revenue to US$229.6m and a 103.9% increase in net profit to US$15.1m in 2Q12, boosted by
one-off gains such as disposals and fair value changes in financial derivatives of about US$9m. 1H12 revenue and core net profit accounted for about
55% and 59% of our full year estimate, largely within our expectations. Gross profit margin fell slightly from 14.7% in 2Q11 to 14.2% in 2Q12; the
drop was larger compared to 1Q12’s 19.8%. As of Aug 2012, the group’s order book stood at about US$1.6b and is expected to contribute to results
over the next two years. Pending an analysts’ briefing later in the afternoon, we maintain our HOLD rating but put our fair value estimate of S$0.63
under review. (Low Pei Han)

Wilmar: Sharply lower 2Q12 earnings; Hold under review
Wilmar International Limited (WIL) reported a very disappointing set of 2Q12 results. Although revenue grew by 4.3% YoY to US$11,019.7m, driven by
volume growth in its Palm & Laurics, Consumer Products and Sugar businesses, reported net profit fell by a staggering 70.2% YoY to US$117.1m.
Management cited losses in Oilseeds & Grains and lower profits from Plantations & Palm Oil Mill; added that Sugar also posted higher losses while
Associates recorded lower contributions. Excluding non-operating items, WIL noted that core net profit would have declined 55% YoY to US$172.3m. For
1H12, revenue rose 6.9% to US$21,490.7m, meeting 42% of our FY12 forecast, while core net profit fell 52% to US$378.0m, or 22% of our full-year
forecast. WIL has declared an interim dividend of S$0.02/share. We will be attending an analyst briefing at noon later; until then, our Hold rating
and S$3.87 fair value is under review. (Carey Wong)

Global Palm: 2Q12 results tad ahead of forecast
Global Palm Resources (GPR) reported its 2Q12 results last evening. Revenue rose 23% YoY and 8% QoQ to IDR106.4b, lifted by both higher sales
volumes and ASP of CPO. As a result, gross margin improved to 35.8% in 2Q12 from 34.8% in 2Q11 and 25.7% in 1Q12. Net profit grew 3% YoY and 57% QoQ
to IDR20.3b. For 1H12, revenue was up 17% at IDR205.3b, meeting 57% of our FY12 forecast; although net profit slipped 4% to IDR33.2b, it still met
60% of our full-year estimate. We will be speaking to management regarding its expansion plan, which continues to remain very slow – only planted
166 ha in 1Q and 93 ha in 2Q, versus its 1k ha target this year. Until then, we place our Hold rating and S$0.19 fair value under review. (Carey
Wong)

For more information on the above, visit www.ocbcresearch.comforthe detailed report. NEWS HEADLINES - The Dow rose less than 0.1% to 13,172.14, buoyed by consumer stocks after some retailers posted good quarterly earnings and July's retail-sales data surpassed estimates. The S&P 500 Index declined less than 0.1% to 1,403.93. - Global Logistics Properties posted a 57.2% YoY increase in 1Q13 PATMI to US$153m. NAV rose to US$1.75 versus US$1.69 in the previous quarter. - The Hour Glass reported 1Q13 PATMI of S$9.3m, up 8% YoY, despite revenue dipping 1% YoY to S$135.3m.

..

ASIANBOOKIE.COM..亚洲庄家...BET WITH CARE AND OWN RISKS..NOTHING IS 100% AND NO 100% GUARANTEE DONT LOVE A STOCK,THE STOCK WILL NEVER LOVE YOU BACK

ASIANBOOKIE.COM..亚洲庄家..Always believe miracle do happen The decision lies in you,dun follow my luan luan picks blindly..PLEASE DO NOT FOLLOW BLINDLY..I ANYHOW PICKS ..祝你好运..鸿运当头。好运连连發。發。發。

AsianBookie Tipsters Championship
Member of Team:
AB Charity
(Est. Apr 2012)
Team Ranked: #17 - Team Score (Top 50 Members): AB$ 7,179,375 Total Members: 122

Like

stand up n wake up

15-Aug 2012 Wednesday 10:56 AM (4274 days ago)

Gold Member

Posts: 24638
Liked By: 14428
Joined: 16 Apr 12
Followers: 6

Tipsters
Championship:
Player has
not started

Retail Market Monitor

www.uobkayhian.com.sg 15 August 2012

Market News

The FSSTI was up 0.8% to 3,087.8, led by gains on regional

bourses. Noble Group gained 12.1% to S$1.25 after posting a

39.3% rise in quarterly net profit. The broader market saw

278 gainers and 119 losers, with trading value amounting to

S$5.3b.

US stocks ended flat, as positive retail sales data was offset by

a report that Greece was looking for an extension to

implement austerity measures. The DJIA gained 0.02% to

13,172 and the S&P 500 index fell 0.01% to 1,404. Commerce

Department data showed that US retail sales grew 0.8% in

July, breaking a string of three straight monthly declines.

Stocks on the move…

City Developments – 2Q12: Steady Sales But Cautious

Outlook Ahead

(CIT SP/HOLD/S$11.83/Target: S$11.85)

Results slightly below expectations…

Ho Bee Investments – 2Q12: Diversifying Its Risks

(HOBEE SP/BUY/S$1.25/Target: S$1.86)

Results in-line…

S’pore Telecommunications – 1QFY13: Slowdown In

Mobile Business In Singapore And Australia

(ST SP/SELL/S$3.39/Target: S$3.22)

SingTel reported net profit below our forecast…

ST Engineering – 2Q12: Excluding Several One-offs, Net

Profit Rises 7.5% yoy

(STE SP/BUY/S$3.31/Target: S$3.78)

Revenue, operating and net profit all improved yoy…

Ezra Holdings (EZRA SP, 5DN) –

Technical BUY with +11.8% potential return

The stock has broken above its mid Bollinger band…

Yangzijiang Shipbuilding Holdings (YZJ SP, BS6) –

Technical BUY with +13.7% potential return

The stock has broken above its trend line…

Noble Group (NOBL SP, N21) –

Technical SELL with +6% potential return

The Stochastics are in the overbought region and a bearish

crossover could be formed…

Last close: 3,087.8 (+0.8%)

Source: NextView

Current View:

A break above 3,090 is likely to test 3,140…

• The FSSTI staged a strong rebound with comparatively

higher trading volume in the last trading session. A break

above 3,090 is likely to test 3,140, a resistance level

mentioned from 6 Aug 12. Thus, the gap created on 8 Aug 11

could be closed and the bearish divergence with its price

oscillator could be temporarily negated for now.

Support: 2,970

Resistance: 3,140

In the last trading session…

• The FSSTI gained 23pts and opened higher at 3,065.8. The

intraday range was from 3,064.9 to 3,088.5.

• Within the FSSTI 30 stock components, Noble Group

(+12.1%) and Olam (+6.0%) led the gainers while City

Developments (-1.3%) and CapitaMall (+1.0%) lost ground.

• Regional bourses ended higher…

HSI (+1.1%) closed at 20,291.7

SSEC (+0.3%) closed at 2,142.5

ASX (+0.2%) closed at 4,317.4

Key dates for SG Economics

15 August Retail Sales (MoM & YoY)

17 August Electronic Exports (YoY)

17 August Non-oil Domestic Exports (MoM & YoY)

23 August CPI (MoM & YoY)

23 August Automobile COE Open Bid

Source: Bloomberg

AsianBookie Tipsters Championship
Member of Team:
AB Charity
(Est. Apr 2012)
Team Ranked: #17 - Team Score (Top 50 Members): AB$ 7,179,375 Total Members: 122

Like

stand up n wake up

15-Aug 2012 Wednesday 10:57 AM (4274 days ago)

Gold Member

Posts: 24638
Liked By: 14428
Joined: 16 Apr 12
Followers: 6

Tipsters
Championship:
Player has
not started

The FSSTI was up 0.8% to 3,087.8, led by gains on regional

bourses. Noble Group gained 12.1% to S$1.25 after posting a

39.3% rise in quarterly net profit. The broader market saw

278 gainers and 119 losers, with trading value amounting to

S$5.3b.

US stocks ended flat, as positive retail sales data was offset by

a report that Greece was looking for an extension to

implement austerity measures. The DJIA gained 0.02% to

13,172 and the S&P 500 index fell 0.01% to 1,404. Commerce

Department data showed that US retail sales grew 0.8% in

July, breaking a string of three straight monthly declines.

Stocks on the move…

City Developments – 2Q12: Steady Sales But Cautious

Outlook Ahead

(CIT SP/HOLD/S$11.83/Target: S$11.85)

Results slightly below expectations…

Ho Bee Investments – 2Q12: Diversifying Its Risks

(HOBEE SP/BUY/S$1.25/Target: S$1.86)

Results in-line…

S’pore Telecommunications – 1QFY13: Slowdown In

Mobile Business In Singapore And Australia

(ST SP/SELL/S$3.39/Target: S$3.22)

SingTel reported net profit below our forecast…

ST Engineering – 2Q12: Excluding Several One-offs, Net

Profit Rises 7.5% yoy

(STE SP/BUY/S$3.31/Target: S$3.78)

Revenue, operating and net profit all improved yoy…

Ezra Holdings (EZRA SP, 5DN) –

Technical BUY with +11.8% potential return

The stock has broken above its mid Bollinger band…

Yangzijiang Shipbuilding Holdings (YZJ SP, BS6) –

Technical BUY with +13.7% potential return

The stock has broken above its trend line…

Noble Group (NOBL SP, N21) –

Technical SELL with +6% potential return

The Stochastics are in the overbought region and a bearish

crossover could be formed…

Last close: 3,087.8 (+0.8%)

Source: NextView

Current View:

A break above 3,090 is likely to test 3,140…

• The FSSTI staged a strong rebound with comparatively

higher trading volume in the last trading session. A break

above 3,090 is likely to test 3,140, a resistance level

mentioned from 6 Aug 12. Thus, the gap created on 8 Aug 11

could be closed and the bearish divergence with its price

oscillator could be temporarily negated for now.

Support: 2,970

Resistance: 3,140

In the last trading session…

• The FSSTI gained 23pts and opened higher at 3,065.8. The

intraday range was from 3,064.9 to 3,088.5.

• Within the FSSTI 30 stock components, Noble Group

(+12.1%) and Olam (+6.0%) led the gainers while City

Developments (-1.3%) and CapitaMall (+1.0%) lost ground.

• Regional bourses ended higher…

HSI (+1.1%) closed at 20,291.7

SSEC (+0.3%) closed at 2,142.5

ASX (+0.2%) closed at 4,317.4

Key dates for SG Economics

15 August Retail Sales (MoM & YoY)

17 August Electronic Exports (YoY)

17 August Non-oil Domestic Exports (MoM & YoY)

23 August CPI (MoM & YoY)

23 August Automobile COE Open Bid

Source: Bloomberg

AsianBookie Tipsters Championship
Member of Team:
AB Charity
(Est. Apr 2012)
Team Ranked: #17 - Team Score (Top 50 Members): AB$ 7,179,375 Total Members: 122

Like

stand up n wake up

15-Aug 2012 Wednesday 10:58 AM (4274 days ago)

Gold Member

Posts: 24638
Liked By: 14428
Joined: 16 Apr 12
Followers: 6

Tipsters
Championship:
Player has
not started

GLP: 1QFY13 net profit jumps 57% yoy. Global Logistics

Properties (GLP) reported its 1QFY13 (ending June) net profit

rose 57.2% yoy to US$153m. EBIT contribution from China more

than tripled to US$82m, mainly due to the completion and

stabilisation of development projects, increasing the leasable

land area in China, and contributions from Transfar Logistics

Base Co. (Source: The Business Times)

Hong Leong Asia: 2Q12 net profit slumps 73% yoy. Hong

Leong Asia’s (HLA) 2Q12 net profit declined 73% to S$4.98m

from S$18.50m a year ago on lower revenue and higher costs.

Revenue from continuing operations declined 12% to S$1.09b on

lower sales from its diesel engine unit Yuchai and white goods

unit Xinfei. (Source: The Business Times)

Hour Glass: 1QFY13 net profit increases 8% yoy. Watch

retailer Hour Glass reported its 1QFY13 rose 8% yoy to S$9.3m

on improved margins. However, revenue declined slightly by 1%

to S$135.3m on a weakening global economy, which impacted

consumer sentiment. (Source: The Business Times)

SIA: Cabin upgrade. Singapore Airlines (SIA) has appointed

two world-renowned design firms - BMW Group subsidiary

Designworks USA, and UK and Singapore-based James Park

Associates (JPA) - to undertake its biggest premium cabin

upgrade in more than five years. Improvements will focus on

cabin ambience, storage space, and seating comfort. (Source:

The Business Times)

SMRT: Appoints new President/CEO. SMRT has appointed

Kuek Bak Chye Desmond as president and CEO from 1 October.

Mr Kuek is the permanent secretary for the Ministry of

Environment and Water Resources, a role which he assumed in

2010. Prior to that, Mr Kuek served in the Singapore Armed

Forces as Chief of Army (2003-07) and Chief of Defence Force

(2007-10). (Source: The Business Times)

WBL: 3QFY12 net profit down on absence of disposal gain.

WBL Corporation reported its 3QFY12 (ending June) net profit

declined 54% to S$14.48m from S$31.41m a year ago. The

decline was mainly attributed to a land disposal gain of S$27.2m

in the previous corresponding period. Revenue rose 61% to

S$553.44m, led by the automotive segment, which saw higher

COE premiums and sales of premium brands locally, and

Volkswagen and BMW in Malaysia. (Source: The Business Times)

Top Volume

Stock Price (S$) Chg (%) Volume (‘000)

Noble Group Ltd 1.250 12.1 171,963

Golden Agri-Resources

Ltd 0.705 0.7 73,871

Genting Singapore Plc 1.280 2.8 55,544

Yangzijiang Shipbuilding 1.020 4.1 35,430

Singapore Telecom Ltd 3.360 (0.9) 33,390

Top Gainers

Stock Price (S$) Chg (%) Volume (‘000)

Noble Group Ltd 1.250 12.1 171,963

Stx Osv Holdings Ltd 1.650 6.5 18,984

Olam International Ltd 2.130 6.0 19,616

Ezra Holdings Ltd 1.055 5.5 12,694

Neptune Orient Lines Ltd 1.230 5.1 13,562

Top Losers

Stock Price (S$) Chg (%) Volume (‘000)

Yeo Hiap Seng Ltd 2.100 (8.7) 11

United Industrial Corp

Ltd 2.550 (1.5) 62

City Developments Ltd 11.830 (1.3) 1,154

Capitamall Trust 1.955 (1.0) 10,255

Singapore Telecom Ltd 3.360 (0.9) 33,390

Source: Bloomberg

AsianBookie Tipsters Championship
Member of Team:
AB Charity
(Est. Apr 2012)
Team Ranked: #17 - Team Score (Top 50 Members): AB$ 7,179,375 Total Members: 122

Like

stand up n wake up

15-Aug 2012 Wednesday 10:58 AM (4274 days ago)

Gold Member

Posts: 24638
Liked By: 14428
Joined: 16 Apr 12
Followers: 6

Tipsters
Championship:
Player has
not started

City Developments – 2Q12: Steady Sales But Cautious Outlook Ahead

(CIT SP/HOLD/S$11.83/Target: S$11.85)

FY12F PE (x): 15.2

FY13F PE (x): 13.7

Results slightly below expectations. City Developments (CDL) reported 2Q12 PATMI of S$137.7m (+38%yoy), bringing 1H12

PATMI to S$294.5m (-42% yoy). The results came in below our expectations representing 43% of our full-year forecasts mainly

due to lower-than expected recognition from H20 Residences project in Singapore.

Maintain HOLD, target price increased to S$11.85 (from S$11.10). We raise our RNAV by 1% to S$12.47/share by marking to

market its listed entities. We maintain HOLD, raising our target price by 7% to S$11.85 pegged at a 5% discount (10%

previously) to its revised RNAV. The discount has been narrowed on the back of reduced policy risks targeting the Singapore

residential mass market segment.

Ho Bee Investments – 2Q12: Diversifying Its Risks

(HOBEE SP/BUY/S$1.25/Target: S$1.86)

FY12F PE (x): 6.2

FY13F PE (x): 6.3

Results in-line. Ho Bee Investment (Ho Bee) reported a 2Q12 net profit of S$72.9m (+45% yoy), bringing 1H12 net profit to

S$88.7m. Core 1H12 PATMI of S$74m (excluding S$18m gain from disposal of industrial property One Tannery) was in line with

our expectations, representing 51% of our full-year forecast.

Maintain BUY, target price raised to S$1.86 (from S$1.80). We raise our RNAV by 4% to S$2.65/share factoring in the

contribution from the Australian acquisition and the gains from the sale of One Tannery. We maintain BUY, raising the target price

to S$1.86 (from S$1.80), pegged at a 30% discount to the revised RNAV.

S’pore Telecommunications – 1QFY13: Slowdown In Mobile Business In Singapore And Australia

(ST SP/SELL/S$3.39/Target: S$3.22)

FY13F PE (x): 15.0

FY14F PE (x): 13.5

Singapore Telecommunications (SingTel) has reported net profit of S$945m (+3.2% yoy) for 1QFY13, below our forecast of

S$1,010m and consensus estimate of S$974m. The results included net exceptional gain of S$88m, contributed largely by a

S$119m gain on the disposal of its investment in Far EasTone.

Maintain BUY. Our valuation for SingTel is S$3.22 based on sum-of-the parts (SOTP) methodology.

ST Engineering – 2Q12: Excluding Several One-offs, Net Profit Rises 7.5% yoy

(STE SP/BUY/S$3.31/Target: S$3.78)

FY12F PE (x): 18.0

FY13F PE (x): 16.9

Revenue, operating and net profit all improved yoy. ST Engineering’s (STE) 9.7% yoy increase in net profit included a

S$13m gain on disposal of two properties and a S$9.3m increase in doubtful debts. The former is seen as non-recurring, while

S$6.7m of the doubtful debts arose from one customer within the Land Systems division. STE also recognised a S$3.6m MTM

charge on an embedded derivative contract. Overall net profit accounted for 49% and 50% of our and consensus full-year

estimates respectively. Excluding the one–off gain, the S$6.7m doubtful debt and the MTM loss, net profit would have still risen

7.5% yoy. Advance payments totalled S$1.8b, S$0.1b higher than 1Q12’s, while orderbook was at a record level of S$12.7b. STE

declared an interim dividend of 3 cents.

Maintain BUY and target price remains at S$3.78, based on DDM with a required return of 6%, terminal growth of 1%.

AsianBookie Tipsters Championship
Member of Team:
AB Charity
(Est. Apr 2012)
Team Ranked: #17 - Team Score (Top 50 Members): AB$ 7,179,375 Total Members: 122

Like

stand up n wake up

15-Aug 2012 Wednesday 11:02 AM (4274 days ago)

Gold Member

Posts: 24638
Liked By: 14428
Joined: 16 Apr 12
Followers: 6

Tipsters
Championship:
Player has
not started

Sunny Side Up: ST Engrg - Record Orderbook Leads the Way Again | Ying Li
Int'l: Prime Assets At Sharp Discount | Other Results – SingTel, City Dev,
Wilmar & First Resource

What’s cooking

ST Engineering: Record Orderbook Leads the Way Again; Still a Buy TP
SGD3.78

STE SP | Mkt Cap USD8.2b | ADTV USD5.2m

Ø ST Engineering (STE) reported 2Q2012 NPATMI of SGD143.1m, a 10%
increase YoY on the back of revenues that grew 6%. Results were in line
with our expectations. An interim dividend of SG 3.0 cts/sh was declared

Ø Management guided that the group expects to achieve higher revenue and
comparable PBT in 2H2012 (vs 1H2012). ST Aerospace is expected once again
to lead the way.
Ø We roll forward our 19x P/E valuation to FY2013 EPS. STE’s record order
book provides clear earnings visibility which in turn supports attractive
forward dividend yields of 5-6%. Maintain BUY.
Click here for full report bernardchin
@maybank-ke.com.sg

Ying Li Int’l: Prime Assets At Sharp Discount; Maintain Buy, TP SGD0.50

YINGLI SP | Mkt Cap USD564.4m | ADTV USD0.8m

Ø Ying Li International announced its 2QFY12 results yesterday. Net
profit came in at RMB40m in 2Q12 vs a loss of RMB17m in 2Q11 but it is
well-expected.

Ø We are confident that the continuous sales of IFC and launch of
International Plaza Block 1, 2 and 3 will generate sufficient cash flow to
cover the debt burden.
Ø Given the prime location and very high-end profile of Ying Li’s assets,
we believe this stock deserve a higher valuation than current level.
Click here for full report weibin
@maybank-ke.com.sg

SingTel: Poor start to the year; Maintain Sell TP SGD3.03

ST SP | Mkt Cap USD43.0b | ADTV USD52.4m

Ø 1Q13 underlying net profit were below expectations, hit by escalating
subscriber acquisition and retention costs in Singapore, a poor showing by
Optus in Australia due to structural changes in its business, and currency
headwinds.

Ø We expect SingTel to continue to face margin, competitive and currency
headwinds in FY13. Earnings are likely to be stable but there is downside
risk to cashflow, as capex is expected to rise on the back of 4G rollout
and expensive 4G spectrum auctions.
Ø Maintain SELL with SOTP TP of SGD3.03. Our target price for SingTel has
risen on the back of higher target prices for Globe, AIS and Bharti in
recent weeks. However, we prefer M1 for telco exposure as it offers a
superior yield of 5.7% at current levels.
Click here for full report
[email protected]
City Dev: Prudent to Take Profit; Reduce to Sell TP SGD10.30

CIT SP | Mkt Cap USD8.6b | ADTV USD7.7m

Ø Excluding divestment gains, we estimate that CDL’s 1H12 core PATMI
declined by 6% YoY to SGD257.3m, in line with our expectations. However,
management has sounded greater caution going forward as global economic
uncertainties persist.

Ø While CDL can still prepare its mass market sites for launch in 2H12,
buyers’ interest in the high-end segment remains depressed. Hotel arm M&C
has also warned that certain hospitality markets are softening.
Ø We are downgrading CDL to SELL, with a target price of SGD10.30 pegged
at a 20% discount to RNAV. Consider re-entry at SGD9.37 for a 10% upside.
Click here for full report
[email protected]

Wilmar Int’l: When bad quarters become the norm; Maintain Sell TP SGD2.60

WIL SP | Mkt Cap USD17.4b | ADTV USD26.6m

Ø 2Q12 results were way below expectations. Recurring net profit was down
55% yoy and we expect significant downwards earnings revisions.

Ø The Oilseeds & Grains division turned in another loss. We expect
matters may become worse as Wilmar find it difficult to pass on higher
soybean cost going forward.
Ø We cut our earnings estimates by 10-18% and now peg our TP of SGD2.60
to 1x P/B on poor earnings visibility.
Click here for full report jameskoh
@maybank-ke.com.sg

First Resources: Promising July Output Growth; Still a Buy TP SGD2.15

FR SP | Mkt Cap USD2.6b | ADTV USD2.8m

Ø 2Q12: A stable quarter. FR’s 2Q12 net profit of USD51m (+4% QoQ, +38%
YoY) was within our and street expectations and brings 1H12 net profit to
USD100m (+48% YoY), on higher FFB sales and strong downstream
contributions.

Ø July’s strong FFB (Nucleus) production growth of 25% MoM/18% YoY holds
promise of further upside to our FY12 net profit forecast
Ø We maintain our earnings estimates for now. BUY call retained with
unchanged TP of SGD2.15 based on 14x FY13 PER.
Click here for full report
[email protected]

AsianBookie Tipsters Championship
Member of Team:
AB Charity
(Est. Apr 2012)
Team Ranked: #17 - Team Score (Top 50 Members): AB$ 7,179,375 Total Members: 122

Like

stand up n wake up