DJ MARKET TALK: Singapore's STI May Stall; 3000-3088 Range Likely 

0058 GMT [Dow Jones] Singapore's STI may stall as the FOMC minutes saying measures are needed "fairly soon" gets a yawn from offshore markets. Local shares may trade "gingerly," says Song Seng Wun, head of research at CIMB. "Generally, we will still find a fairly cautious mode on the ground and activity fairly limited," he adds, expecting various firms' trading desks to keep activity from completely drying up. China's August HSBC flash manufacturing PMI, due later, is likely to be keenly watched, but expectations for improvement may be priced in. "Typically, August and September are the two busiest months of the year for Asian factories, China included. We do expect slightly busier activities--from making Christmas trees and Christmas lights and fake angels--to be reflected," Song notes. Singapore CPI, due at 0500 GMT, could give "some cheer" if it's below 4.5%, although that would be off a high base, he says. The STI ended Wednesday down 0.5% at 3049.47. 3000 likely offers support, while 3088 remains resistance. Among stocks in focus, casino regulators fined Genting Singapore (G13.SG) S$140,000 for casino-entry rule violations, while Nam Cheong (N4E.SG) landed US$43.81 million contract wins for three vessels.
 
 
 
 

DJ MARKET TALK: Genting Singapore Likely Won't React Much To Fines 

0036 GMT [Dow Jones] Genting Singapore (G13.SG) may track a possible market downdraft, but likely won't react much to Singapore's casino regulator fining it S$140,000 for failures in enforcing the city-state's tough casino-entry restrictions. "I don't think it is hugely significant," an analyst says. He doesn't think this indicates regulators are becoming more strict; "They've been fining them regularly for a lot of different reasons." He adds, "All casinos in all developed markets always get fined. It's quite common in Australia, the U.S. and the U.K." The stock ended Wednesday down 1.5% at S$1.335; its 10-day moving average around S$1.31 may offer support, while last week's S$1.38 intraday peak likely offers resistance.
 
 
 

*DJ Olam International Target Raised To S$1.60 From S$1.40 By Maybank-Kim Eng
 

 

Daily Review, 23 August 2012 Page 1 of 5

SGX-ST Member, SGX-DT (CNCM)

Daily Review

23 August 2012

LIM & TAN SECURITIES PTE LTD

20 CECIL STREET

#09-00 EQUITY PLAZA

SINGAPORE 049705

TEL: 65330595 FAX: 65332368

www.limtan.com.sg

RCB Reg No. 197301030W

PARKWAY LIFE

S$1.97-PLIF.SI

 We are downgrading PLife to HOLD following the

expiry of the right of first refusal granted by

Parkway Holdings, which is today part of IHH

Healthcare.

 The expiry suggests:

a. Mt Elizabeth Novena may not be sold to PLife;

b. hope for dual listing of Plife in Malaysia may not

materialize.

 PLife’s 5% yield, which still has upside given Singapore’s

high inflation, is expected however to provide cushion.

Daily Review, 23 August 2012 Page 2 of 5

SGX-ST Member, SGX-DT (CNCM)

ARA ASSET MANAGEMENT

S$1.50-ARAA.SI

 ARA (partly owned by Li Ka Shing) is reported to be

reviving plan for a Rmb denominated IPO of some

of its property assets in China, to raise an estimated

US$640 mln. Yield is expected to range between 6%

and 7%.

 These assets, largely office and retail, are currently in

ARA’s flagship Asia Dragon Fund I.

 The plan was shelved earlier due to unfavorable market

conditions.

 Two factors are likely to continue to weigh on the

planned IPO:

a. the dismal performance of Hui Xian Reit, the

first Rmb denominated listing outside China, with

Li Ka Shing behind it: priced at Rmb 5.24, it

slumped to Rmb 2.70 half a year later in October

’11 before rebounding to Rmb 3.77 currently.

Neither has Hutchison Port performed well.

See Exhibits 1 & 2 below.

b. drop in Rmb deposits in HK (and likely Singapore

as well) with Rmb no longer seen as a one-way bet.

 We do not have a rating on ARA.

Exhibit 1: Hui Xian Daily Closing Since Listing In April 2011

Last Price 3.77

High on 04/28/11 5.24

Average 3.921

Low on 10/10/11 2.70

Exhibit 2: Hutchison Port Daily Closing Since Listing In March 2011

Last Price 0.715

High on 03/17/11 1.01

Average 0.753

Low on 11/29/11 0.575

Daily Review, 23 August 2012 Page 3 of 5

SGX-ST Member, SGX-DT (CNCM)

PC MARKET

 After Dell’s 5% share price decline yesterday due to

the company cutting its profit and sales estimate by

20% on the back of the weaker than expected PC

demand, HP too fell 5% in after hours trading as the

company also lowered its sales and profit guidance on

the back of weaker than expected demand in the PC

market.

 The reasons cited by both companies include sluggish

demand in developed markets while developing

markets saw growth moderate at a faster than

expected pace as tablet computers and smart phones

take market share away and traditional PC and

notebook buyers await for new software upgrades

later this year.

 Locally, companies with exposure to the PC market

such as Broadway (35 cents, down 1 cent),

Armstrong (26.5 cents, unchanged) and Cheung

Woh (16.8 cents, down 0.2 cents) have similarly

warned about the tough operating conditions and we

believe its still too early for investors looking to

bottom-fish the sector.

Daily Review, 23 August 2012 Page 4 of 5

SGX-ST Member, SGX-DT (CNCM)

CHINA

 China’s Central Bank Governor Zhou XC was quoted

as saying that further cuts to China’s interest rates

and reserve requirement ratios are still possible after

the central bank yesterday injected more liquidity into

the banking system.

• Nam Cheong - Confirmation of 3 more vessel contracts. Maintain BUY with TP of S$0.24 for close to 30% earnings CAGR over FY11-13.

Today’s Focus

 Nam Cheong - Confirmation of 3 more vessel contracts.

Maintain BUY with TP of S$0.24 for close to 30%

earnings CAGR over FY11-13.

The O&M sector continues to be underpinned by contract

flows. Nam Cheong’s US$43.8m contract win follows Keppel

Corp’s US$315m contract finalization with Floatel Internaional.

Nam Cheong has secured sale contracts for three vessels - 2

AHTS and 1 PSV - for a total consideration of US$43.8m.

These vessels are part of Nam Cheong's build-to-stock series

models and are being built at one of its partner yards in China.

With the sale of these 3 vessels, Nam Cheong's orderbook has

expanded to RM912m, consisting of 15 vessels. Of the 12

vessels scheduled to be completed in 2H12 (6 were delivered

in 1H12), we reckon only 1 AHTS vessel remains unsold as of

now. The 2 AHTS were sold to repeat customers while the sale

of the PSV marks the penetration of a new offshore oil & gas

market for Nam Cheong, and expands future geographical

scope. These sale contracts also further strengthen Nam

Cheong's track record of being able to sell its built-to-stock

vessels well ahead of completion. As highlighted earlier, Nam

Cheong's earnings will be stronger in 2H12, as more vessels

are delivered during this period. Maintain BUY with TP of

S$0.24 for close to 30% earnings CAGR over FY11-13.

HLN Technologies proposes to sell its stake in Tianjin Swan

Lake project for S$14.1m. On top of the profit guarantee in

FY2011 of S$1.9m, the proposed sale included FY2012 prorated

profit of approximately S$2.0m, bringing the total to

S$3.9m. With the return on its investment, the Board would

be considering and recommending a one-time special dividend

payment to reward its shareholders. The proposed disposal is

expected to be completed by the first quarter of 2013.

RH Petrogas has received approval from China National

Petroleum Corporation (CNPC) for the revised Overall

Development Plan (ODP) with regards to the phased

development of the Yongping Field in the Fuyu 1 Block in Jilin

Province, China. CNPC will submit the ODP for final

government approval from the National Development and

Reform Commission (NDRC) and the approval is expected to

be obtained in the fourth quarter of 2012. Field development

and commercial production will commence immediately after

NDRC approval.

US Indices Last Close Pts Chg % Chg

Dow Jones  13,172.8 (30.8) (0.2)

S&P  1,413.5 0.3 0.0

NASDAQ  3,073.7 6.4 0.2

Regional Indices

ST Index  3,049.5 (16.3) (0.5)

ST Small Cap  465.4 (1.9) (0.4)

Hang Seng  19,887.8 (212.3) (1.1)

HSCEI  9,698.8 (127.1) (1.3)

HSCCI  3,876.1 (43.4) (1.1)

KLCI  1,652.3 2.5 0.1

SET  1,234.1 1.9 0.2

JCI  4,160.5 18.5 0.4

PCOMP  5,152.2 (54.7) (1.0)

KOSPI  1,935.2 (8.0) (0.4)

TWSE  7,496.6 (10.2) (0.1)

Nikkei  9,131.7 (25.2) (0.3)

STI Index Performance

Singapore

1,000

2,000

3,000

4,000

2006 2007 2008 2009 2010 2011 2012

100-Day MA

Index

STI

Total Market cap (US$bn) 560

Total Daily Vol (m shrs) 1,350

12m ST Index High 3,088

12m ST Index Low 2,529

Source: Bloomberg

Stock Picks – Large Cap

Rec’n Price ($)

22/8

Target Price

($)

Keppel Corp Buy 11.51 13.20

SembCorp Marine Buy 5.08 5.85

Noble Group Buy 1.250 1.30

SingTel Take profit 3.31 3.25

City Development FV 11.70 11.42

Stock Picks – Small Cap

Rec’n Price ($)

22/8

Target Price

($)

STX OSV Holdings Buy 1.515 2.00

Ezion Holdings Buy 1.070 1.42

Bumitama Agri Buy 1.115 1.30

Nam Cheong Buy 0.183 0.24

Tiger Airways Buy 0.745 0.92

Source: Bloomberg, DBS Vickers

Singapore

Wired Daily

Page 2

Hanwell, Intraco's controlling shareholder with a stake of

29.89%, has accepted tycoon Oei Hong Leong's $20.6m

offer (70 cents a share) for its stake in Intraco and is working

towards finalising the sale-and-purchase agreement.

Hanwell's latest move may mark the beginning of the end of

a bidding war for its Intraco stake. TH Investments - a

privately owned investment vehicle for the family that runs

Tat Hong Holdings - had offered 68 cents (up from 62 cents)

a share for that stake.

Passenger traffic through Changi Airport in July rose 4.5% yo-

y to 4.36m. Air traffic movements grew in tandem, with

27,100 landings and take-offs or 4.6% more than a year

ago. Traffic to and from the Middle East, south-west Pacific

and the Americas remained strong and recorded double-digit

growth. However, the growth in South-east Asia and Northeast

Asia traffic was weaker and in the low single digits.

These two regions account for about 70% of total passenger

traffic at Changi. On the cargo front, Changi handled

152,900 tonnes of shipments last month, a decline of 4.5%

y-o-y. On a rolling 12-month basis, passenger traffic and

aircraft movements increased to 49.3m (up 10.3% y-o-y) and

318,000 (up 12%) respectively. Airfreight movements were

stable at 1.85m tonnes for the 12-month period. The airport

is on target to record total passenger traffic of slightly over

50m for 2012.

Casino regulator has fined Marina Bay Sands and Resorts

World Sentosa for disciplinary for breach of social safeguard

requirements. Marina Bay Sands, run by Las Vegas Sands

Corp, was fined S$357,500 while Resorts World Sentosa,

operated by Genting Singapore, was asked to pay S$140,000

in fines.

In property news, a 30-year leasehold industrial site on Bukit

Batok Street 23 drew four bids, with the top bid coming in at

$32.3m, or $80.03 psf ppr. The top bid, submitted by

Soilbuild Group, beat the second-highest bid of $26.3m or

$65.06 psf ppr.

US markets pared early session losses after the FED minutes

showed policy makers favoured more stimuli. Many Federal

Reserve policy makers said additional stimulus would

probably be needed soon unless the economy shows signs of

a durable pickup, this according to the record of the most

recent FOMC meeting. Investors’ focus is likely to stay tune

on the details of Greece’s bailout package to be discussed

this week and the FED’s Jackson Hole summit next Friday. In

China, the HSBC flash manufacturing PMI will be released

this morning.

Singapore

Wired Daily

Page 3

Share Buy-Back

Company D.O.T . Buy /Sell No.of shares S$/shr

Global Testing Corporation Ltd 22-Aug-12 Share Buy-Back 200,000 0.0600

Golden Ocean Group Limited 22-Aug-12 Share Buy-Back 86,489 NOK 4,00

HG Metal Manufacturing Ltd 22-Aug-12 Share Buy-Back 1,300,000 0.0800

Koh Brothers Group Limited 22-Aug-12 Share Buy-Back 124,000 0.2050

KSH Holdings Limited 22-Aug-12 Share Buy-Back 110,000 0.2253

Overseas-Chinese Banking Corp 22-Aug-12 Share Buy-Back 100,000 9.3200

Second Chance Properties Ltd 22-Aug-12 Share Buy-Back 2,000,000 0.3900

Viking Offshore and Marine Ltd 22-Aug-12 Share Buy-Back 150,000 0.1070

Wee Hur Holdings Ltd 22-Aug-12 Share Buy-Back 229,000 0.2800

Golden Ocean Group Limited 21-Aug-12 Share Buy-Back 4,183,673 NOK 4,00

Hisaka Holdings 21-Aug-12 Share Buy-Back 2,503,000 0.3272

Overseas-Chinese Banking Corp 21-Aug-12 Share Buy-Back 100,000 9.3900

Pan-United Corporation Ltd 21-Aug-12 Share Buy-Back 122,000 0.6200

Second Chance Properties Ltd 21-Aug-12 Share Buy-Back 610,000 0.3900

Viking Offshore and Marine Ltd 21-Aug-12 Share Buy-Back 150,000 0.1080

Pan-United Corporation Ltd 17-Aug-12 Share Buy-Back 120,000 0.6080

HG Metal Manufacturing Ltd 17-Aug-12 Share Buy-Back 1,191,000 0.0800

Viking Offshore and Marine Ltd 17-Aug-12 Share Buy-Back 50,000 0.1080

G.K. Goh Holdings Limited 17-Aug-12 Share Buy-Back 87,000 0.7200

CDW Holding Limited 17-Aug-12 Share Buy-Back 300,000 0.0920

Overseas-Chinese Banking Corp 17-Aug-12 Share Buy-Back 100,000 9.3800

Hisaka Holdings 17-Aug-12 Share Buy-Back 1,374,000 0.3228

Wee Hur Holdings Ltd 17-Aug-12 Share Buy-Back 1,050,000 0.2850

Pan-United Corporation Ltd 16-Aug-12 Share Buy-Back 113,000 0.6085

Hisaka Holdings 16-Aug-12 Share Buy-Back 3,600,000 0.3249

See Hup Seng Ltd 16-Aug-12 Share Buy -Back 985,000 0.1967

Straco Corporation Limited 16-Aug-12 Share Buy-Back 90,000 0.2100

CDW Holding Limited 16-Aug-12 Share Buy-Back 5,000 0.0910

Global Testing Corporation Ltd 16-Aug-12 Share Buy-Back 100,000 0.0600

Overseas-Chinese Banking Corp 16-Aug-12 Share Buy-Back 100,000 9.4000

Second Chance Properties Ltd 16-Aug-12 Share Buy-Back 3,983,000 0.3900

KSH Holdings Limited 16-Aug-12 Share Buy-Back 206,000 0.2200

Wee Hur Holdings Ltd 16-Aug-12 Share Buy-Back 2,654,000 0.2800

HG Metal Manufacturing Ltd 16-Aug-12 Share Buy-Back 1,200,000 0.0800

Source: SGX Masnet

Singapore

Wired Daily

Page 4

Substantial Shareholders’ Transactions: 10 Aug – 16 Aug 2012

Stock

Transacted

Date

Substant ial Shareholder/ Director

Buy /Sell

/ Conv

No of

Shares

('000)

Price Per

Share $

%Issued

Cap Before

Change

%Issued

Cap A f ter

Change

Goldtron 16-Aug-12 Tan Kok Hiang Buy 2000 0 0 0.03

San Teh 16-Aug-12 Kao Ching Fong Nee Pan * Buy 1000 0.29 39.8 40.09

San Teh 16-Aug-12 Kao Shin Ping Buy 1000 0.29 16.21 16.5

Aspial Corporation 15-Aug-12 Koh Wee Seng Buy 100 0.37 14.19 14.2

ES Group 15-Aug-12 Low Chee Wee Buy 45 0.17 21.31 21.35

Global Premium 15-Aug-12 Lim Chee Chong Buy 100 0.24 0.05 0.06

J iutian Chemical 15-Aug-12 Anyang Longyu Buy 450 - 28.46 28.49

PCI 15-Aug-12 Peh Kwee Chim * Buy 325 0.45 76.16 76.33

PCI Ltd 15-Aug-12 Chuan Hup Buy 325 - 76.16 76.33

Serial System 15-Aug-12 Goh Bak Heng Buy 206 0.11 35.09 35.11

Stamford Tyres 15-Aug-12 Dawn Wee * Buy 50 0.33 31.2 31.22

Stamford Tyres 15-Aug-12 Wee Kok Wah Buy 50 0.33 15.91 15.93

BRC Asia 14-Aug-12 Lingco Holdings Buy 440 0.13 5.23 5.28

Hotel Royal 14-Aug-12 Lee Keng Thon Buy 35 2.49 0.6 0.64

LH Group 14-Aug-12 Tan Yong Kee Sell 2000 - 0.99 0.94

Liongold 14-Aug-12 Dato Md Wira Dani Buy 200 1.25 5.09 5.11

Liongold 14-Aug-12 Dato Md Wira Dani * Buy 200 - 5.09 5.11

M Development 14-Aug-12 Value Capital Asset Mgt Sell 12831 - 10.04 8.45

Marco Polo Marine 14-Aug-12 Lee Wan Tang * Buy 2000 0.34 56.3 56.89

Marco Polo Marine 14-Aug-12 Lai Qin Zhi * Buy 2000 0.34 57.03 57.61

Serial System 14-Aug-12 Goh Bak Heng Buy 12 0.11 35.08 35.09

Stamford Tyres 14-Aug-12 Dawn Wee * Buy 251 - 31.09 31.2

Stamford Tyres 14-Aug-12 Wee Kok Wah Buy 251 0.33 15.8 15.91

Stamford Tyres 14-Aug-12 Dawn Wee * Buy 63 - 31.06 31.09

Transpac Industrial Hldgs 14-Aug-12 Vincent Chen Sell 17 1.63 0.08 0.08

Ascendas India Trust 13-Aug-12 Matthews Int'l Funds * Buy 5580 - 9.37 10.04

Aspial Corporation 13-Aug-12 Koh Wee Seng Buy 376 0.37 14.17 14.19

China Essence Group 13-Aug-12 Sanlam Universal Fund Plc Sell 102 - 9 8.97

China XLX Fertilizer 13-Aug-12 Liu Xing Xu * Buy 3475 0.32 34.34 34.69

China XLX Fertilizer 13-Aug-12 Pioneer Top Hldgs Buy 3475 - 34.34 34.69

CSE Global 13-Aug-12 Amundi S.A. Sell 25 - 6 5.99

J asper Investments 13-Aug-12 Phillip J effrey Saile Sell 2000 0.06 0.25 0.21

LH Group 13-Aug-12 Tan Yong Kee Sell 5000 - 1.12 0.99

Liongold 13-Aug-12 Dato Md Wira Dani * Buy 1000 1.24 4.97 5.09

Sincap Group 13-Aug-12 Fu Hao Buy 81 0.11 53.86 53.91

Stamford Tyres 13-Aug-12 Wee Kok Wah Buy 63 0.33 15.77 15.8

Transpac Industrial Hldgs 13-Aug-12 Vincent Chen Sell 53 1.65 0.11 0.08

City Developments 10-Aug-12 Aberdeen Asset Mgt Asia * Sell 306 - 13.01 12.98

LH Group 10-Aug-12 Tan Yong Kee Sell 3000 - 1.2 1.12

Oceanus Group 10-Aug-12 Yu De Hua * Sell 2000 - 17.42 17.34

Oceanus Group 10-Aug-12 Yu Yang Sell 2000 - 8.18 8.1

Trust 10-Aug-12 Ooi Eng Peng Buy 150 0.5 0 0.01

Serial System 10-Aug-12 Goh Bak Heng Buy 284 0.11 35 35.03

Transpac Industrial Hldgs 10-Aug-12 Vincent Chen Sell 43 1.58 0.13 0.11

*Deemed Interest

Source: Business Times; SA: Share Allotment; ST: Share Transfer, B/R: Bonus/Rights Issue; OE: Option Exercise; PL: Placement Shares

Singapore

Wired Daily

Page 5

Announced Dividends and Capital Issues: 23 Aug 2012 – 26 Sep 2012 (by Ex-Date)

Company Ty pe Part iculars Ex Date

Paid/

Pay able

CSC HOLDINGS LTD DIVIDEND SGD 0.0009 ONE-TIER TAX 23-Aug-12 07-Sep-12

MACQUARIE INT'L INFRA FUND LTD DIVIDEND SGD 0.0275 23-Aug-12 10-Sep-12

MAXI-CASH FIN SVCS CORP LTD DIVIDEND SGD 0.005 ONE-TIER TAX 23-Aug-12 07-Sep-12

NY01100F 160901 INTEREST 3.75% 23-Aug-12 03-Sep-12

NY03100A 180901 INTEREST 4% 23-Aug-12 03-Sep-12

NY05100N 200901 INTEREST 3.25% 23-Aug-12 03-Sep-12

NY07100X 220901 INTEREST 3.13% 23-Aug-12 03-Sep-12

NY09100H 240901 INTEREST 3% 23-Aug-12 03-Sep-12

NZ07100S 270301 INTEREST 3.50% 23-Aug-12 03-Sep-12

NZ10100F 300901 INTEREST 2.88% 23-Aug-12 03-Sep-12

Q & M DENTAL GROUP (S) LIMITED DIVIDEND SGD 0.003 ONE-TIER TAX 23-Aug-12 07-Sep-12

SERIAL SYSTEM LTD DIVIDEND SGD 0.0022 ONE-TIER TAX 23-Aug-12 05-Sep-12

SUPER GROUP LTD. DIVIDEND SGD 0.02 ONE-TIER TAX 23-Aug-12 07-Sep-12

TECKWAH INDUSTRIAL CORP LTD DIVIDEND SGD 0.01 ONE-TIER TAX 23-Aug-12 10-Sep-12

THAI BEVERAGE PUBLIC CO LTD DIVIDEND THB 0.14 LESS TAX 23-Aug-12 11-Sep-12

ARA ASSET MANAGEMENT LIMITED DIVIDEND SGD 0.023 ONE-TIER TAX 24-Aug-12 11-Sep-12

CHASEN HOLDINGS LIMITED DIVIDEND SGD 0.006 ONE-TIER TAX 24-Aug-12 06-Sep-12

HAW PAR CORP LTD DIVIDEND FIRST & INTERIM SGD 0.06 ONE-TIER TAX 24-Aug-12 12-Sep-12

HONG LEONG FINANCE LIMITED DIVIDEND SGD 0.04 ONE-TIER TAX 28-Aug-12 14-Sep-12

OVERSEAS UNION ENTERPRISE LTD DIVIDEND SGD 0.03 ONE-TIER TAX 28-Aug-12 13-Sep-12

QAF LTD DIVIDEND SGD 0.01 ONE-TIER TAX 28-Aug-12 12-Sep-12

SINGAPORE REINSURANCE COR LTD DIVIDEND SGD 0.005 TAX EXEMPT 28-Aug-12 12-Sep-12

CAPITAMALLS ASIA LIMITED DIVIDEND SGD 0.01625 ONE-TIER TAX 29-Aug-12 13-Sep-12

FREIGHT LINKS EXPRESS HOLDINGS DIVIDEND SCRIPDIVSCHEME SGD 0.0045 ONE-TIER TAX 29-Aug-12

GLOBAL INVESTMENTS LIMITED DIVIDEND SGD 0.0075 TAX EXEMPT 29-Aug-12 10-Sep-12

LEE METAL GROUP LTD DIVIDEND SGD 0.005 ONE-TIER TAX 29-Aug-12 14-Sep-12

OSIM INTERNATIONAL LTD DIVIDEND SGD 0.01 ONE-TIER TAX 29-Aug-12 12-Sep-12

OSIM INTERNATIONAL LTD DIVIDEND SGD 0.01 ONE-TIER TAX 29-Aug-12 12-Sep-12

TAN CHONG INT'L LTD DIVIDEND HKD 0.02 29-Aug-12 13-Sep-12

TAT SENG PACKAGING GROUP LTD DIVIDEND SGD 0.01 ONE-TIER TAX 29-Aug-12 17-Sep-12

FIRST RESOURCES LIMITED DIVIDEND SGD 0.0125 ONE-TIER TAX 30-Aug-12 20-Sep-12

SAKARI RESOURCES LIMITED DIVIDEND USD 0.02 TAX EXEMPT 30-Aug-12 13-Sep-12

STAMFORD TYRES CORPORATIONLTD DIVIDEND SGD 0.015 ONE-TIER TAX 30-Aug-12 18-Sep-12

UNITED OVERSEAS BANK LTD DIVIDEND SGD 0.2 ONE-TIER TAX 30-Aug-12 13-Sep-12

TSIT WING INTL HOLDINGS LTD DIVIDEND HKD 0.015 31-Aug-12 21-Sep-12

HIAP HOE LIMITED DIVIDEND SGD 0.005 ONE-TIER TAX 03-Sep-12 21-Sep-12

HONG LEONG ASIA LTD. DIVIDEND SGD 0.01 ONE-TIER TAX 03-Sep-12 20-Sep-12

UOB 5.05%NCPS 100 DIVIDEND 150312 - 140912 5.05% ONE-TIER TAX 03-Sep-12 17-Sep-12

DESIGN STUDIO FURNITURE MFRLTD DIVIDEND SGD 0.0075 ONE-TIER TAX 04-Sep-12 21-Sep-12

KINGSMEN CREATIVES LTD DIVIDEND SGD 0.015 ONE-TIER TAX 04-Sep-12 24-Sep-12

MULTI-CHEM LIMITED DIVIDEND SGD 0.0055 ONE-TIER TAX 04-Sep-12 20-Sep-12

SAKAE HOLDINGS LTD. DIVIDEND SGD 0.005 ONE-TIER TAX 04-Sep-12 20-Sep-12

CAPITARETAIL CHINA TRUST DIVIDEND 010112 - 300612 SGD 0.0482 05-Sep-12 26-Sep-12

ASTI HOLDINGS LIMITED DIVIDEND SGD 0.0015 ONE-TIER TAX 06-Sep-12 26-Sep-12

PEOPLE'S FOOD HOLDINGS LIMITED DIVIDEND CNY 0.01 06-Sep-12 25-Sep-12

MEGACHEM LIMITED DIVIDEND SGD 0.003 TAX EXEMPT 07-Sep-12 28-Sep-12

POPULAR HOLDINGS LIMITED DIVIDEND SGD 0.008 ONE-TIER TAX 07-Sep-12 26-Sep-12

NOVO GROUP LTD. DIVIDEND SGD 0.01 ONE-TIER TAX 10-Sep-12 04-Oct-12

POH TIONG CHOON LOGISTICS LTD DIVIDEND SGD 0.005 ONE-TIER TAX 12-Sep-12 28-Sep-12

RIVERSTONE HOLDINGS LIMITED DIVIDEND MYR 0.022 ONE-TIER TAX 12-Sep-12 05-Oct-12

FRAGRANCE GROUP LIMITED BONUS OFFER OF 1 FOR 1 14-Sep-12

TOTAL ADR 10 DIVIDEND APPROXIMATE USD 0.587795 19-Sep-12 18-Oct-12

GP INDUSTRIES LIMITED DIVIDEND SGD 0.015 ONE-TIER TAX 20-Sep-12 04-Oct-12

N507101E 121001 INTEREST 2.50% 20-Sep-12 01-Oct-12

N507101E 121001 ENTITL. REDEMPTION 100% 20-Sep-12 01-Oct-12

N508100V 130401 INTEREST 0.01625 20-Sep-12 01-Oct-12

N509100N 141001 INTEREST 0.01375 20-Sep-12 01-Oct-12

N511100W 160401 INTEREST 0.01125 20-Sep-12 01-Oct-12

N710100Z 170401 INTEREST 0.02375 20-Sep-12 01-Oct-12

NA12100N 420401 INTEREST 0.0275 20-Sep-12 01-Oct-12

SINGAPORE EXCHANGE LIMITED DIVIDEND SGD 0.15 TAX EXEMPT 26-Sep-12 12-Oct-12

Source: SGX

Morning Matters

Figure of the Day

Source: google.com

Follow Green – astute investor who is

snapping up k1 Ventures. See 'Scoop of the

Day'

Market Indices

Value Chg % Chg

Dow Jones 13,172.8 -30.82 -0.23

S&P 500 1,413.5 +0.32 +0.02

Nasdaq 3,073.7 +6.41 +0.21

FTSE 100

5,774.2 -83.32 -1.42

Nikkei 9,131.7 -25.18 -0.27

Hang Seng 19,887.8 -212.31 -1.06

Shanghai 2,107.7 -10.56 -0.50

KOSPI 1,935.2 -8.03 -0.41

STI 3,049.5 -16.30 -0.53

KLCI 1,652.3 +2.46 +0.15

Key Indicators

Value Chg %

Oil Price*

(US$/bbl)

97.26 +0.58 +0.60

Gold Price**

(US$/oz)

1654.65 +16.85 +1.03

US$/S$ 1.2477 -0.00 -0.23

* WTI Crude Future

** Gold Spot

While You Were Sleeping

US markets: Negative

Dow futures: +5 (as at 8am Singapore Time)

US Wrap: Stocks got a boost on late Wednesday after minutes of the latest

Fed meeting showed growing support of a possible stimulus soon, unless

incoming data already shows strong signs of a US recovery. The Dow Jones

Industrial Average closed down 31 points (-0.2%) to 13,173 points as

Caterpillar, HP and Intel were the biggest decliners dragging down the Dow.

The Nasdaq rose 6 points (+0.2%) to 3074 points while the S&P500 finished

up less than a point at 1413.49. Notable stock movements include specialty

retailer Williams-Sonoma which surged 11.6% after it beat earnings

estimates and lifted growth outlook for the year. The benchmark 10-year

Treasury was surging 30/32, diluting the yield to 1.699%. The greenback was

down 0.4, according to the dollar index.

The Day Ahead…

Scoop of the Day: GKB Holdings, the investment vehicle set up by major

shareholders of k1 Ventures to undertake the privatisation of k1 Ventures,

has, as of 15 August 2012, received valid acceptances amounting to 283m

shares, or 13% of the outstanding shares. Together with GKB’s existing 62%

which were tendered for the offer, the group has now received valid

acceptances for 75.4% of the outstanding shares. One of the conditions for

the offer was valid acceptances of 90% of the outstanding shares, failing

which the offer will lapse. Following an earlier extension of the offer period,

the offer will expire next Wednesday, ie 29 August 2012. We continue to

believe that GKB’s offer of S$0.135/share substantially undervalues the

stock, representing a discount of 50% to our revised NAV of S$0.27/share.

We are optimistic of the prospects for the group’s key investee companies,

such as the 12.2% stake in Knowledge Universe Holdings, the largest preschool

chain in the United States with a meaningful international presence in

overseas markets in the United Kingdom, Singapore and Malaysia. Of k1’s

original US$56m investment cost, it has to date received over US$51m in

distributions, reducing its holding cost to US$5m. Similarly, Helm Holdings,

its rail equipment leasing business in the U.S., is poised to ride an uptrend in

equipment utilisation and rate uplift. We believe the independent financial

advisor for the offer, in using historical book values to value key investments

such as KUH , Helm and China Grand Auto, does not fairly reflect the private

market values of these investments. Steven Green, CEO of k1, seems to

agree with us. If the offer succeeds, he will be the biggest beneficiary with his

stake raised from the current 14% to 42.8%. We recommend to reject the

offer. (Goh Han Peng)

WHAT’S INSIDE?

On The Platter

OSIM International: Roadshow and showroom visits reaffirms confidence in

numbers (BUY, S$1.345, TP: S$1.75)

23 August 2012

See important disclosures at the end of this publication

3

DMG Research

On the Platter

OSIM International: Roadshow and showroom visits reaffirms confidence in numbers (BUY,

S$1.345, TP: S$1.75)

Melissa Yeap (+65 6232 3897, [email protected])

Terence Wong, CFA (+65 6232 3896, terence.wong@sg,oskgroup.com)

We recently hosted OSIM for a roadshow to Malaysia. We note that their product pipeline is set for

next year and we should expect two new chairs, which should drive earnings momentum in

FY13/14. Some investors were concerned over the impact of a slowdown in China but

management appears confident impact will be minimal as chair penetration rates there are still

very low at 1%. In terms of combating copycats in China, OSIM stands out by targeting the

premium end of the segment which value quality, durability and after-sales service. We have also

been busy scouting out the showrooms of OSIM, Ogawa and Otto and found that OSIM offers the

most extensive range of products among its peers in terms of price points as well as choices of

colours. Finally we note that management has its heart still set on getting 55%-owned Brookstone

re-listed in the US by 2014, which could be a kicker to earnings. We re-iterate our BUY call on the

stock with an unchanged TP of S$1.75, pegged to 15x FY14F earnings. We note investors have

begun to take notice of this stock, as it hit a high of $1.37 recently. OSIM remains our top pick

within the Singapore consumer space.

Showroom visits to OSIM, Ogawa & Otto. We spent a weekend scouting out the showrooms of

OSIM and its competitors Ogawa and Otto to compare products and prices. We came away

confident that OSIM is likely to retain its market leadership position as its products range are far

more extensive than its competitors, aesthetically more appealing and available in more colour

options.

Potential listing of Brookstone by 2014? – We understand financing for Brookstone is set till

2014, which is when OSIM targets to re-list the Company. Brookstone currently is EBITDA positive

but is still loss-making due to a US$126m loan at a 13% coupon which amounts to US$20m in

annual interest payments.

23 August 2012

See important disclosures at the end of this publication

4

DMG Research

Company Insider No. of Shares

Share Price

(S$)

% Stake before

transaction

% Stake after

transaction

ASPIAL CORPORATION Koh Wee Seng 386,000 0.365 74.400 74.420

LIONGOLD CORP Nomura International 992,413 1.250 4.930 5.050

MARCO POLO MARINE LEE WAN TANG 2,000,000 0.340 58.198 58.785

GLOBAL TESTING CORPORATION Share Buy-Back 200,000 0.060 na 0.634

HG METAL MANUFACTURING Share Buy-Back 1,300,000 0.080 na 1.323

KOH BROTHERS Share Buy-Back 124,000 0.205 na 0.772

KSH HOLDINGS Share Buy-Back 110,000 0.225 na 0.270

OCBC Share Buy-Back 100,000 9.320 na 0.288

SECOND CHANCE PROPERTIES Share Buy-Back 2,000,000 0.390 na 3.340

VIKING OFFSHORE AND MARINE Share Buy-Back 150,000 0.107 na 0.590

WEE HUR Share Buy-Back 229,000 0.280 na 1.400

Company Insider No. of Shares

Share Price

(S$)

% Stake before

transaction

% Stake after

transaction

Sale

M DEVELOPMENT VALUE CAPITAL ASSET MANAGEMENT 51,899,000 na 6.170 0.150

SUNPOWER GROUP Artur Jurczakowski 400,000 na 7.810 7.690

UNITED INTL SECURITIES Laxey Partners 2,005,000 na 9.950 8.950

# Exercise of Rights issue / Share Options / Convertibles / Warrants / Share Issuance.

## Married deal.

Purchase

INSIDER TRADES HIGHLIGHT FOR 22 Aug 12