DJ MARKET TALK: Singapore's STI May Stall; 3040 Initial Support 

0051 GMT [Dow Jones] Singapore's traders appear set to spend another day rearranging the deck chairs while waiting to arrive at the Jackson Hole port. "Today, equity markets will struggle to move higher ahead of Jackson Hole. All those 'Easing Wanters' positioned themselves weeks ago and with sentiment shifting towards the symposium being a non event, the risks are definitely to the downside," says Andrew Taylor, markets strategist at GFT Markets, in a note. The STI ended Wednesday up 1.50 points at 3,041.57. 3040 likely remains initial support, with some analysts looking at 3020 as the next floor. Resistance at the 3088 year-to-date high will likely remain untested. Rubber-linked shares such as GMG (5IM.SG) and Goodpack (G05.SG) may be in focus after major natural rubber producers Thailand, Indonesia and Malaysia firmed up a deal to limit rubber exports in an effort to support prices. Yongnam (Y02.SG) landed a S$21.3 million contract for a Malaysian project. Sembcorp (U96.SG) signed a JV deal for a new urban development in Indonesia. A study published in JAMA showed Biosensors' (B20.SG) BioMatrix stent is more effective than a bare-metal stent in treating patients with acute myocardial infarction.
 
 
 

*DJ Biosensors International Target Cut To S$1.42 From S$1.61 By Maybank-Kim Eng 
 
 
 

Daily Review, 30 August 2012 Page 1 of 4

SGX-ST Member, SGX-DT (CNCM)

Daily Review

30 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

FINANCIAL MARKETS

 September is indeed shaping up to be an

important month for financial markets.

 Mario Draghi, President of the ECB has cancelled

plan to attend the Federal Reserve’s economic

symposium on Friday, citing his heavy workload.

 Indeed, the Sept 6 ECB’s meeting will be more than

the regular rate-setting meeting, as a “show-down

between Draghi and Jens Weidmann

(Bundesbank’s president) is unavoidable.

 Recall Draghi’s unusually bold commitment, on

July 26th “to do whatever it takes within our mandate

to preserve the euro, and believe me, it will be

enough”, had set the world financial markets on a

strong rebound, eg Stoxx 600 has risen 6.3% at the

recent high, and Dow 3%.

 His latest remarks like “there is no need to wait for

full political integration”, that the original

architecture of the euro (in 1999) is “wrong”, are

music to the ears of all, except the Germans and their

northern neighbors.

 Bottomline is, equity markets have been consolidating

after a good summer, eg S&P500 has been fluctuating

around the 1400 level for 2 weeks, and our own

indicator has been totally indecisive, fluctuating

between positive and negative signals, no different

from what’s happening at Intraco / Hanwell.

 Our earlier view that global financial markets are

vulnerable (largely because of a strong summer) may

turn out to be too cautious.

 Other events in Sept, curiously around the 12th are:

the German court ruling on the constitutionality

of the euro bailout fund; launch of new Apple

iPhone, and the 2-day FOMC meeting.

Daily Review, 30 August 2012 Page 2 of 4

SGX-ST Member, SGX-DT (CNCM)

QINGMEI / S-CHIPS

S$0.064-QMEI.SI

 The attachment tracing recent key events at Qingmei

is worth noting, as it contains useful lessons, such as

share disposals by insiders in the name of increasing

liquidity; unusually high dividend yields.

Exhibit 1: Qingmei Daily Closing Since Listing In March 2010

Last Price 0.063

High on 02/08/11 0.360

Average 0.191

Low on 08/29/12 0.063

b

c

a. 25 Aug ‘11 : Declares Rmb0.1292 dividend or 2.45 Singapore cents for y.e. Jun ‘11. At

18.7¢, yield is 13.1%

b. 07 Oct ‘11 : Executive Chairman / CEO Su Qingyuan sells 23 mln shares to private

investors at 16.85¢ to enhance liquidity and meet investors demand

c. 22 Dec ‘11 : Su opts for 36,171,971 new shares pursuant to Scrip Dividend Scheme

d. 14 Feb ‘12 : Qingmei records best-ever H1 results (Rmb160.29 mln profit)

e. 17 Feb ‘12 : Su sells 114.32 mln shares to certain investors at 16 - 17¢

f. 28 Aug ‘12 : Incurs Rmb40.82 mln loss for Q4 ended Jun ‘12

d

a e

f

Daily Review, 30 August 2012 Page 3 of 4

SGX-ST Member, SGX-DT (CNCM)

YAMADA GREEN RESOURCES

S$0.131-YAMA.SI

 As warned by management at end July ’12, Yamada

swung into its first quarterly loss since its listing in

Oct ’10 of Rmb19.5mln against profit of Rmb6.5mln

last year.

 Severe gross margin erosion (down from 34% a year

ago and 39.1% a quarter ago to only 22.8%), fair value

loss (Rmb28.2mln) on their 51,193 mu of eucalyptus

trees and Rmb4.6mln share based expense were cited

as the reasons for the loss. But the quarter also

benefitted from one-time write-back of deferred tax

liability of Rmb6.4mln and other gains of Rmb6.4mln.

 While the operating profit for 4Q to June ’12 was

about break-even, we note that its a low season for

the company.

 Yamada’s financial position deteriorated with cash

holdings falling from Rmb80mln to Rmb14mln despite

having generated Rmb157.3mln operating cash flow

for the year to June ’12 as the company bought

Rmb187.1mln worth of shiitake mushroom synthetic

logs, Rmb94.2mln eucalyptus trees, Rmb37.5mln land

use rights for mushroom cultivation and Rmb22mln

fo capital expenditures.

 As a result, no dividend was declared.

 Trade and other receivables increased by 33% to

Rmb189mln due to advanced payment for synthetic

logs and deposit to purchase a piece of land for

expansion.

 Looking ahead, management will be putting efforts in

increasing sales of shiitake mushrooms as well as

promoting their own brand of konjac-based dietary

fibre products.

 Yamada’s share price has declined 21% since its profit

warning at the end of July ’12, implying that a good

part of the bad news is in the stock price.

 At 2-3x PE, Yamada is valued close to China

Minzhong.

 We prefer China Minzhong given its longer operating

history, more reputable shareholder base with GIC

and Templeton as major shareholders and 40+

different vegetable profile versus Yamada’s 1 type

(shiitake mushroom).

§        Capitaland’s technical indicators weakening – Initial downside to $2.91, below this is $2.81. Immediate resistance $3.03-3.07

§        Sakari Resources – S$1.90 offer by PTT reasonably attractive but longer term investors with bullish coal price outlook could still look to hold on

Singapore

Wired Daily

Page 2

City Developments and an unlisted sister company in the

privately held Hong Leong Group are understood to have

inked a deal to sell their nearly 500,000 sq ft freehold tract

of industrial land in Kranji for $240m. The buyers are

believed to be linked to property development group BS

Capital. Based on a 2.5 plot ratio, the property can be

developed into a maximum gross floor area of about 1.17m

sq ft, which works out to be around $205 psf of this

potential gross floor area. The site comprises six land

parcels. CDL is understood to have purchased the property

in 1989 for $19m, but later sold the majority stake to the

Hong Leong unit for about $37m in the 1990s. Based on

CDL's 37.17% interest in the property, it should be able to

book sales proceeds of around $89m when the sale is

completed, probably in late-October.

Yongnam has secured a significant project worth S$21.3m

to supply, fabricate, surface-treat and deliver 7,000 tonnes

of structural steel for a belt conveyor structure for German

company, Beumer Group in Lumut, State of Perak, Malaysia.

This is the group’s first significant project in Malaysia since

its last major project at Tanjung Bin Power Plant in 2005

Sembcorp Industries is co-developing an 860-hectare urban

development in Kendal Regency, Central Java, Indonesia.

Under an agreement, Sembcorp and its Indonesian partner,

GBC will incorporate a joint venture company in Indonesia

with an initial issued capital of US$20m. Sembcorp will own

a 49% stake in the joint venture company while GBC will

hold the remaining 51%. Sembcorp’s initial equity

investment of US$9.8m will be internally funded.

United Envirotech has signed an agreement for a 30-year

Built-Operate-Transfer (BOT) project in Xintai City,

Shandong Province, China. The design capacity of the

industrial wastewater treatment plant is 20,000 m3/day for

Phase I and 20,000 m3/day for Phase II. It will use UEL’s

membrane bioreactor (MBR) technology to treat chemical

industrial wastewater from an industrial park in Xintai. The

total investment for Phase I is approximately RMB100m.

Biosensors has welcomed publication of a study in the

prestigious medical journal JAMA which demonstrates that

BioMatrix™, its stent system which elutes Biolimus A9™

from a biodegradable polymer, is more effective in reducing

events and potentially safer than a bare-metal stent in the

treatment of patients with acute myocardial infarction. The

study showed that the use of BioMatrix reduced the rate of

major cardiovascular events by more than 50% compared

to the use of a bare-metal stent.

Singapore

Wired Daily

Page 3

Share Buy-Back

Source: SGX Masnet

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

Anchun International 29-Aug-12 Share Buy-Back 1,300,000 0.0500

CDW Holding Limited 29-Aug-12 Share Buy-Back 200,000 0.0930

Food Empire Holdigns Limited 29-Aug-12 Share Buy-Back 50,000 0.4200

Global Testing Corporation Ltd 29-Aug-12 Share Buy-Back 785,000 0.0621

Macquarie Int'l Infra Fund Ltd 29-Aug-12 Share Buy-Back 726,000 0.5250

Overseas-Chinese Banking Corp 29-Aug-12 Share Buy-Back 100,000 9.2100

Pan-United Corporation Ltd 29-Aug-12 Share Buy-Back 57,000 0.6193

Second Chance Properties Ltd 28-Aug-12 Share Buy-Back 200,000 0.0930

CDW Holding Limited 28-Aug-12 Share Buy-Back 50,000 0.4200

Food Empire Holdigns Limited 28-Aug-12 Share Buy-Back 420,000 0.0616

Global Testing Corporation Ltd 28-Aug-12 Share Buy-Back 265,000 0.0800

HG Metal Manufacturing Ltd 28-Aug-12 Share Buy-Back 460,000 0.5250

Macquarie Int'l Infra Fund Ltd 28-Aug-12 Share Buy-Back 100,000 9.2000

Overseas-Chinese Banking Corp 28-Aug-12 Share Buy-Back 170,000 0.6200

Pan-United Corporation Ltd 28-Aug-12 Share Buy-Back 36,000 0.3900

Second Chance Properties Ltd 28-Aug-12 Share Buy-Back 1,121,000 0.2800

Wee Hur Holdings Ltd 27-Aug-12 Share Buy-Back 100,000 0.0930

CDW Holding Limited 27-Aug-12 Share Buy-Back 5,000 0.7200

GK Goh Holdings 27-Aug-12 Share Buy-Back 500,000 0.0610

Global Testing Corporation Ltd 27-Aug-12 Share Buy-Back 1,075,000 NOK 4,00

Golden Ocean Group Limited 27-Aug-12 Share Buy-Back 500,000 0.0800

HG Metal Manufacturing Ltd 27-Aug-12 Share Buy-Back 45,000 0.2050

Koh Brothers Group Limited 27-Aug-12 Share Buy-Back 470,000 0.2200

KSH Holdings Limited 27-Aug-12 Share Buy-Back 1,000,000 0.5250

Macquarie Int'l Infra Fund Ltd 27-Aug-12 Share Buy-Back 100,000 9.2400

Overseas-Chinese Banking Corp 27-Aug-12 Share Buy-Back 150,000 0.6200

Pan-United Corporation Ltd 27-Aug-12 Share Buy-Back 576,000 0.3900

Second Chance Properties Ltd 27-Aug-12 Share Buy-Back 205,000 0.2800

Wee Hur Holdings Ltd 24-Aug-12 Share Buy-Back 100,000 0.0930

CDW Holding Limited 24-Aug-12 Share Buy-Back 1,407,000 0.3221

Hisaka Holdings 24-Aug-12 Share Buy-Back 505,000 0.5270

Macquarie Int'l Infra Fund Ltd 24-Aug-12 Share Buy-Back 100,000 9.2700

Overseas-Chinese Banking Corp 24-Aug-12 Share Buy-Back 608,000 0.3900

Second Chance Properties Ltd 24-Aug-12 Share Buy-Back 2,170,000 0.2800

Singapore

Wired Daily

Page 4

Substantial Shareholders’ Transactions: 16 Aug – 23 Aug 2012

*Deemed Interest

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

Stock Transacted Date Substantial Shareholder/ Director

Buy/Sell/

Conv

No of

Shares

('000)

Price Per

Share $

%Issued Cap

Before

Change

%Issued Cap

After Change

Pacific Healthcare 23-Aug-12 William Cheong * Buy 12 0.1 11.9 11.9

Marco Polo Marine 22-Aug-12 Lee Wan Tang Buy 2000 0.34 0.72 1.31

Pacific Healthcare 22-Aug-12 Pacific Investments Buy 12 na 7.53 7.53

Aspial Corporation 21-Aug-12 Koh Wee Seng Buy 386 0.37 14.21 14.23

Pacific Healthcare 21-Aug-12 Pacific Investments Buy 50 na 7.52 7.53

Pacific Healthcare 21-Aug-12 William Cheong * Buy 50 0.1 11.89 11.9

Starhub 21-Aug-12 Neil Montefiore Sell 420 3.6 0.04 0.02

Sunpower Group 21-Aug-12 Artur Jurczakowski Sell 400 na 7.81 7.69

UIS 21-Aug-12 Laxey Partners Ltd * Sell 2005 na 9.95 8.95

Aspial Corporation 17-Aug-12 Koh Wee Seng Buy 100 0.37 14.2 14.21

HLH Group 17-Aug-12 Wang Kai Yuen Buy 3600 0.03 0.03 0.12

Jasper Investm 17-Aug-12 Phillip Jeffrey Saile Sell 1800 0.06 0.14 0.1

Liongold Corp 17-Aug-12 Nomura Holdings * Buy 1007 0 4.93 5.06

Liongold Corp 17-Aug-12 Nomura Intl Sell 268 na 3.88 3.84

Liongold Corp 17-Aug-12 Nomura Intl * Buy 1260 na 1.05 1.21

M Development 17-Aug-12 Vslue Capital Asset Mgtm Sell 68000 na 14.06 6.17

M Development 17-Aug-12 Lin Chung Ming Buy 57000 0.01 0.2 6.2

M Development 17-Aug-12 Vslue Capital Asset Mgtm Sell 51899 na 6.17 0.15

Marco Polo Marine 17-Aug-12 Lai Qin Zhi * Buy 2000 0.34 57.61 58.2

Marco Polo Marine 17-Aug-12 Lee Wan Tang * Buy 2000 0.34 56.89 57.48

MFS Technology 17-Aug-12 Dato Tan Bian Ee Buy 1256 0.12 0.28 0.48

Nobel Design 17-Aug-12 Patrick Kho * Buy 179 na 6.22 6.32

PCI 17-Aug-12 Peh Kwee Chim * Buy 900 0.45 76.33 76.78

PCI 17-Aug-12 Chuan Hup Hldgs * Buy 900 na 76.33 76.78

Stamford Tyres 17-Aug-12 Dawn Wee * Buy 50 0.34 31.22 31.24

Stamford Tyres 17-Aug-12 Wee Kok Wah Buy 50 0.34 15.93 15.95

CSE Global 16-Aug-12 Amundi Group * Buy 60 na 5.99 6

CSE Global 16-Aug-12 Amundi S A * Buy 60 na 5.99 6

CSE Global 16-Aug-12 Amundi Group * Buy 79 na 5.99 6

CSE Global 16-Aug-12 Amundi S A * Buy 79 na 5.99 6

Liongold Corp 16-Aug-12 Nomura Intl * Sell 1424 na 1.23 1.05

Liongold Corp 16-Aug-12 Nomura Holdings * Sell 1235 na 5.08 4.93

Nobel Design 16-Aug-12 Patrick Kho Buy 439 na 7.78 8.04

OCBC 16-Aug-12 Lai Teck Poh Sell 30 0.4 0.01 0.01

Pacific Healthcare 16-Aug-12 Pacific Investments Buy 1 na 7.52 7.52

Pacific Healthcare 16-Aug-12 William Cheong * Buy 1 0.1 11.89 11.89

Sky One Hldgs 16-Aug-12 Teo Chew Seng Sell 387 0.32 0.12 0

Stamford Tyres 16-Aug-12 Dawn Wee * Buy 5 0.33 31.22 31.22

Stamford Tyres 16-Aug-12 Wee Kok Wah Buy 5 0.33 15.93 15.93

Sunvic Chemical 16-Aug-12 Jiao Xingkun Buy 300 0.32 0.04 0.1

Techcomp Hldgs 16-Aug-12 Kabouter Fund Buy 113 na 5.96 6.01

Singapore

Wired Daily

Page 5

Announced Dividends and Capital Issues: 30 Aug 2012 – 22 Nov 2012 (by Ex-Date)

Company Ty pe Part iculars Ex Date

Paid/

Pay able

F IRST 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

CHINAMOBILE ADR 10 DIVIDEND APPROXIMATE USD 0.94735 04-Sep-12 09-Oct-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 1.63% 20-Sep-12 01-Oct-12

N509100N 141001 INTEREST 1.38% 20-Sep-12 01-Oct-12

N511100W 160401 INTEREST 1.13% 20-Sep-12 01-Oct-12

N710100Z 170401 INTEREST 2.38% 20-Sep-12 01-Oct-12

NA12100N 420401 INTEREST 2.75% 20-Sep-12 01-Oct-12

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

TPV TECHNOLOGY LIMITED DIVIDEND USD 0.0046 01-Oct-12 12-Oct-12

LIAN BENG GROUP LTD DIVIDEND SGD 0.01 ONE-TIER TAX 03-Oct-12 19-Oct-12

LIAN BENG GROUP LTD DIVIDEND SGD 0.01 ONE-TIER TAX 03-Oct-12 19-Oct-12

SELECT GROUP LIMITED DIVIDEND SGD 0.005 ONE-TIER TAX 04-Oct-12 22-Oct-12

FRAGRANCE GROUP LIMITED DIVIDEND SGD 0.0005 ONE-TIER TAX 05-Oct-12 18-Oct-12

UMS HOLDINGS LIMITED DIVIDEND SGD 0.01 ONE-TIER TAX 11-Oct-12 31-Oct-12

YUEXIU PROPERTY CO LIMITED DIVIDEND HKD 0.042 12-Oct-12 15-Nov-12

GLOBAL PREMIUM HOTELS LIMITED DIVIDEND SGD 0.002 ONE-TIER TAX 16-Oct-12 30-Oct-12

ELLIPSIZ LTD DIVIDEND USD 0.0016 ONE-TIER TAX 24-Oct-12 15-Nov-12

BRITISH & MALAYAN TRUSTEES LTD DIVIDEND SGD 0.027 TAX EXEMPT 29-Oct-12 12-Nov-12

BOARDROOM LIMITED DIVIDEND SGD 0.02 ONE-TIER TAX 30-Oct-12 23-Nov-12

K1 V ENTURES LIMITED DIVIDEND SGD 0.005 ONE-TIER TAX 31-Oct-12 14-Nov-12

ASL MARINE HOLDINGS LTD DIVIDEND SGD 0.0175 ONE-TIER TAX 01-Nov-12 19-Nov-12

CHOSEN HOLDINGS LIMITED DIVIDEND SGD 0.0066 ONE-TIER TAX 05-Nov-12 23-Nov-12

F J BENJAMIN HOLDINGS LTD DIVIDEND SGD 0.01 ONE-TIER TAX 05-Nov-12 27-Nov-12

PARKSON RETAIL ASIA LIMITED DIVIDEND SGD 0.03 ONE-TIER TAX 06-Nov-12 23-Nov-12

NX09100W 190601 INTEREST 2.50% 22-Nov-12 03-Dec-12

NX11100X 210601 INTEREST 2.25% 22-Nov-12 03-Dec-12

Source: SGX