DJ MARKET TALK: Singapore's STI May Fall; 3000 Support Eyed 

 [Dow Jones] Singapore's STI is set for a bit of a nail-biter as players watch whether it manages to hold above the key psychological support at 3000, as it may track negative cues from Wall Street and some regional peers. "Markets will continue on the back foot as the Hope Trade (buying on ECB, Fed and PBOC stimulus expectations) continues to unwind ahead of Bernanke's speech," says Andrew Taylor, markets strategist at GFT Markets, in a note. "I don't see a mass exodus before his speech, or even after his speech for that matter. As we have seen many times before, the 'Hoper Traders' are willing to easily forgive and look to the next opportunity/meeting to be let down." The STI ended Thursday down 1.0% at 3011.82. OCBC has tipped 2980 as the next support level. On the upside, 3020 may now offer resistance. A dearth of fresh corporate news may help keep players sidelined. Mermaid Maritime (DU4.SG) landed an accommodation barge contract potentially valued at US$4.8 million. Otto Marine (G4F.SG) deployed a Landing Craft in Australia on a long-term charter contract for US$15.1 million. Osim (O23.SG) bought back 450,000 shares at S$1.257
 
 
August 30, 2012 20:34 ET (00:34 GMT)
DJ Ezra Holdings Sells S$200 Mln 3-Year Bond Issue - Term Sheet 

SINGAPORE--Ezra Holdings Ltd. (5DN.SG) has sold a 200 million Singapore dollar (US$160 million) three-year bond issue, according to a term sheet seen by Dow Jones Newswires Friday.
The fixed-rate note was priced with a 5.0% coupon.
DBS and HSBC were joint bookrunners.
 
 
 

*DJ Mapletree Logistics Trust Target Raised To S$1.17 From S$1.06 By Maybank-KE
 

Daily Review, 31 August 2012 Page 1 of 4

SGX-ST Member, SGX-DT (CNCM)

Daily Review

31 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

 World equity markets continued to weaken

yesterday (Dow down 0.8%, Stoxx 600 Europe

down 1.2%), and not without reasons:

a. waning hopes Bernanke will be announcing

QE3 at the conclusion of the annual get together

of central bankers today in the US;

b. weak economic numbers from countries like

Germany.

 We believe it is just as well expectations (for “action”

by central banks) are getting more realistic.

 Indeed, rising unemployment in Germany / Germany

and France on the brink of recession will likely cause

German leaders to “relent” a little from their push for

austerity and more austerity.

Daily Review, 31 August 2012 Page 2 of 4

SGX-ST Member, SGX-DT (CNCM)

DUKANG / S-CHIPS

What’s Amiss? S$0.24-DUKA.SI

 China’s National Bureau of Statistics said the baijiu

industry grew 30% in 2011 in terms of revenue. And

in the first half of 2012, production of baiju rose 17%

to 5.2 mln kiloliters. (History of the Chinese hard

liquor goes back >2000 years.)

 Yesterday, Dukang reported 30% increase in net profit

to Rmb 128.09 mln (S$43.03 mln) on 28% increase in

revenue to Rmb 1.83 bln for ye Jun ’12.

 Fact is since listing, Dukang has been reporting steady

profit growth - see below.

 Yet, stock has been languishing at the bottom end of

trading range since listing in Sept ’08.

 In fact, it is yet another half-on-half story: from 92

cents in Dec ’10 to 46 cents in Sept ’11; and then

to 21 cents in May this year.

 At 22 cents, historic PE is 4.2x with current market

cap of almost S$180 mln, of which just half represents

cash reserves of Rmb 469.2 mln / S$92 mln!

Revenue Net Profit Gross

Margin

Rmb mln Rmb mln %

2009 702.92 104.87 32.2

2010 779.59 174.65* 32.2

2011 1425.67 168.01 36.0

2012 1826.59 218.09 37.5

* Excluding Rmb 149.7 mln fair value loss on convertible

bonds

Daily Review, 31 August 2012 Page 3 of 4

SGX-ST Member, SGX-DT (CNCM)

YAMADA GREEN RESOURCES

S$0.131-YAMA.SI

 At the full year to June’12 results briefing yesterday,

management was decidedly more cautious versus our

last meeting 3 months ago.

 Management cited increasingly challenging operating

conditions in China such as fast-rising labor and land

costs in China as well as raw materials (synthetic logs)

to produce their shiitake mushrooms.

 Management’s original plan during their IPO in late

Oct ’10 was to use a good part of their IPO proceeds

to buy eucalyptus plantations which the company will

subsequently harvest and use as raw materials to grow

shiitake mushrooms.

 While they have spent close to Rmb150mln to buy

these plantations, they are still not able to harvest

them for their own use due to the government not

having granted them the permit to do so. As a result,

for the upcoming planting season (from late Sept ’12

till Apr ’13), the company would still have to source

for their raw materials externally which will result in

margin erosion due to the 5-10% rise in prices.

 The uncertain weather patterns such as the late arrival

of last year’s winter season coupled with heavier than

usual rains also caused last year’s production tonnage

(of shiitake mushrooms) of 55,000 to fall short of their

target of more than 60,000. Given the recent volatile

weather patterns, management is worried that it may

have an adverse impact on their output when their

planting season starts in late Sept ’12.

 And unlike China Minzhong which is increasing

production of higher margined crops such as King

Oyster Mushrooms, Black Fungus and organic

vegetables as well as improving farm land yield to help

offset cost increases in China, Yamada is still counting

on only shiitake mushrooms in the year ahead, implying

that profit margins are expected to contract further.

 Having considered the factors mentioned above, we

believe that Yamada is likely to see earnings

contraction of between 10-15% this year to

Rmb118mln to Rmb125mln giving a forward PE of

about 2.4x. (This would be significantly lower than

consensus expectation of Rmb202mln).

 Consensus on the other hand is expecting China

Minzhong to grow profit by about 10% this year to

Rmb748mln, giving a forward PE of 2.7x.

 We maintain our preference for China Minzhong in

the agricultural sector.

• Midas – Potential to win more orders. Maintain BUY, TP S$0.49; stock is already bombed out at 0.7x P/B.

Singapore

Wired Daily

Page 2

Share Buy-Back

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

Anchun International 30-Aug-12 Share Buy-Back 300,000 0.0501

CDW Holding Limited 30-Aug-12 Share Buy-Back 250,000 0.0920

Food Empire Holdigns Limited 30-Aug-12 Share Buy-Back 100,000 0.4200

Macquarie Int'l Infra Fund Ltd 30-Aug-12 Share Buy-Back 2,770,000 0.5250

Memtech International Ltd 30-Aug-12 Share Buy-Back 20,000 0.0770

Osim International Ltd 30-Aug-12 Share Buy-Back 450,000 1.2570

Overseas-Chinese Banking Corp 30-Aug-12 Share Buy-Back 100,000 9.2100

Pan-United Corporation Ltd 30-Aug-12 Share Buy-Back 207,000 0.6186

Ryobi Kiso Holdings 30-Aug-12 Share Buy-Back 497,000 0.1190

Second Chance Properties Ltd 30-Aug-12 Share Buy-Back 1,528,000 0.3900

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

Memtech International Ltd 29-Aug-12 Share Buy-Back 1,000,000 0.0730

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

CDW Holding Limited 28-Aug-12 Share Buy-Back 200,000 0.0930

Food Empire Holdigns Limited 28-Aug-12 Share Buy-Back 50,000 0.4200

Global Testing Corporation Ltd 28-Aug-12 Share Buy-Back 420,000 0.0616

HG Metal Manufacturing Ltd 28-Aug-12 Share Buy-Back 265,000 0.0800

Macquarie Int'l Infra Fund Ltd 28-Aug-12 Share Buy-Back 460,000 0.5250

Overseas-Chinese Banking Corp 28-Aug-12 Share Buy-Back 100,000 9.2000

Pan-United Corporation Ltd 28-Aug-12 Share Buy-Back 170,000 0.6200

Second Chance Properties Ltd 28-Aug-12 Share Buy-Back 36,000 0.3900

Wee Hur Holdings Ltd 28-Aug-12 Share Buy-Back 1,121,000 0.2800

CDW Holding Limited 27-Aug-12 Share Buy-Back 100,000 0.0930

GK Goh Holdings 27-Aug-12 Share Buy-Back 5,000 0.7200

Global Testing Corporation Ltd 27-Aug-12 Share Buy-Back 500,000 0.0610

Golden Ocean Group Limited 27-Aug-12 Share Buy-Back 1,075,000 NOK 4,00

HG Metal Manufacturing Ltd 27-Aug-12 Share Buy-Back 500,000 0.0800

Koh Brothers Group Limited 27-Aug-12 Share Buy-Back 45,000 0.2050

KSH Holdings Limited 27-Aug-12 Share Buy-Back 470,000 0.2200

Macquarie Int'l Infra Fund Ltd 27-Aug-12 Share Buy-Back 1,000,000 0.5250

Overseas-Chinese Banking Corp 27-Aug-12 Share Buy-Back 100,000 9.2400

Pan-United Corporation Ltd 27-Aug-12 Share Buy-Back 150,000 0.6200

Second Chance Properties Ltd 27-Aug-12 Share Buy-Back 576,000 0.3900

Wee Hur Holdings Ltd 27-Aug-12 Share Buy-Back 205,000 0.2800

CDW Holding Limited 24-Aug-12 Share Buy-Back 100,000 0.0930

Hisaka Holdings 24-Aug-12 Share Buy-Back 1,407,000 0.3221

Macquarie Int'l Infra Fund Ltd 24-Aug-12 Share Buy-Back 505,000 0.5270

Overseas-Chinese Banking Corp 24-Aug-12 Share Buy-Back 100,000 9.2700

Second Chance Properties Ltd 24-Aug-12 Share Buy-Back 608,000 0.3900

Wee Hur Holdings Ltd 24-Aug-12 Share Buy-Back 2,170,000 0.2800

Global Testing Corporation Ltd 23-Aug-12 Share Buy-Back 1,467,000 0.0600

Golden Ocean Group Limited 23-Aug-12 Share Buy-Back 25,000 NOK 4,00

Koh Brothers Group Limited 23-Aug-12 Share Buy-Back 50,000 0.2050

Overseas-Chinese Banking Corp 23-Aug-12 Share Buy-Back 100,000 9.3400

San Teh Limited 23-Aug-12 Share Buy-Back 484,000 0.2900

Second Chance Properties Ltd 23-Aug-12 Share Buy-Back 999,000 0.3900

Viking Offshore and Marine Ltd 23-Aug-12 Share Buy-Back 36,000 0.1080

Wee Hur Holdings Ltd 23-Aug-12 Share Buy-Back 152,000 0.2800

Source: SGX Masnet

Singapore

Wired Daily

Page 3

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 4

Announced Dividends and Capital Issues: 31 Aug 2012 – 31 Oct 2012 (by Ex-Date)

Source: SGX

Company Type Particulars Ex Date Paid/ Payable

BEST WORLD INTERNATIONAL LTD DIVIDEND SGD 0.006 ONE-TIER TAX 31-Aug-12 19-Sep-12

INTERRA RESOURCES LIMITED RIGHTS OFFER OF 1 FOR 2 @ SGD 0.15 31-Aug-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

ISHARES ASIA LC 1-3Y BOND ETF DIVIDEND USD 0.06 03-Sep-12 27-Sep-12

ISHARES ASIA LOC CUR BOND ETF DIVIDEND USD 0.08 03-Sep-12 27-Sep-12

ISHARES USD ASIA BOND ETF DIVIDEND USD 0.12 03-Sep-12 27-Sep-12

ISHARES USD ASIA HY BOND ETF DIVIDEND USD 0.22 03-Sep-12 27-Sep-12

PETROCHINA ADR 10 DIVIDEND APPROXIMATE USD 2.140294 03-Sep-12

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

XMH HOLDINGS LTD. DIVIDEND SGD 0.01 ONE-TIER TAX 03-Sep-12 14-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

OCBC CAP 3.93% S$400M NCPS 10 DIVIDEND 200312 - 190912 3.93% 04-Sep-12 20-Sep-12

OCBCCAPCORP(2008) 5.1%NCPS 100 DIVIDEND 200312 - 190912 5.1% 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

DIAGEO ADR 10 DIVIDEND APPROXIMATE USD 1.708365 05-Sep-12 26-Oct-12

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

KOON HOLDINGS LIMITED DIVIDEND SGD 0.005 ONE-TIER TAX 06-Sep-12 25-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

LUNG KEE (BERMUDA) HLDGS LTD DIVIDEND HKD 0.06 10-Sep-12 27-Sep-12

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

SURFACE MOUNT TECH (HLDGS) LTD ENTITL. SHARE CONSOL OFFER OF 1 FOR 15 10-Sep-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

SHANGRI-LA ASIA LIMITED DIVIDEND HKD 0.1 25-Sep-12 10-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

GENTING SPS$500M5.125% PERPSEC BONDS INT 180412 - 171012 5.125% 11-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

UNITED OVERSEAS AUSTRALIA LTD DIVIDEND UNFRANKED,DRP AUD 0.005 15-Oct-12 01-Nov-12

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

GUOCOLAND LIMITED DIVIDEND SGD 0.05 ONE-TIER TAX 18-Oct-12 15-Nov-12

GUOCOLEISURE LIMITED DIVIDEND SGD 0.02 22-Oct-12 08-Nov-12

CORDLIFE GROUP LIMITED DIVIDEND SGD 0.018 ONE-TIER TAX 24-Oct-12 14-Nov-12

ELLIPSIZ LTD DIVIDEND SGD 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

KARIN TECHNOLOGY HLDGS LIMITED DIVIDEND HKD 0.071 29-Oct-12 15-Nov-12

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

SIN GHEE HUAT CORPORATION LTD. DIVIDEND SGD 0.02 ONE-TIER TAX 30-Oct-12 14-Nov-12

AUSGROUP LIMITED DIVIDEND SGD 0.0036 ONE-TIER TAX 31-Oct-12 21-Nov-12

AUSGROUP LIMITED DIVIDEND SGD 0.0064 ONE-TIER TAX 31-Oct-12 21-Nov-12

GEMS TV HOLDINGS LIMITED DIVIDEND SGD 0.0095 31-Oct-12 15-Nov-12

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

KIAN ANN ENGINEERING LTD DIVIDEND SGD 0.0082 ONE-TIER TAX 31-Oct-12 14-Nov-12

RYOBI KISO HOLDINGS LTD. DIVIDEND SGD 0.003 ONE-TIER TAX 31-Oct-12 14-Nov-12

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Company Update 31 August 2012

Singapore

Co. Reg No: 198700034E

MICA (P) : 099/03/2012

Mapletree Logistics Trust

Capital Recycling to Bear Fruit

Capital Recycling. MLT has recently announced that it will be

acquiring Hyundai Logistics Centre (HLC) in South Korea at SGD24.3m

with an initial NPI yield of 9%. It will also be divesting 30 Woodlands

Loop in Singapore (FY3/12 NPI yield-on-cost of 6% according to our

estimates) at a sale consideration of SGD15.5m, booking a net disposal

again of ~SGD4.96m. Both transactions will complete by 3QFY3/13 and

Feb 2013 respectively. Gearing is expected to increase marginally to

37.2% upon completion of both transactions.

Our estimates. HLC is currently leased to E-Land World and ENVICO.

We expect the acquisition to complete by Oct 2012 and have factored

in modest rental escalations of 1.5% p.a. At existing 1QFY3/13 portfolio

yield of 6.5%, we think this acquisition will be yield-accretive. We revise

our DPU estimates by 0.3%-0.5% over FY3/13-FY3/16.

Still the highest WALE in the industry. MLT’s assets have increased

by almost ninefold since the company listed in July 2005. Given its

larger asset base, we expect further scale advantages ahead. MLT also

has one of the industry’s highest weighted average lease expiry profiles

(six years vis-à-vis AREIT’s four years). Despite having exposure to

seven overseas markets, Singapore Japan and South Korea (tier-1

mature markets) constitute 76.3% of revenue and 76.4% of NPI in

FY3/13 and 78% of our FY3/13 GAV, which should prove defensive in

volatile markets.

Yields can be compressed by another 53bps. From our estimates,

the implied cap rate for MLT (based on 1QFY3/13 results) is 6.09%. If

we take this cap rate as the floor for FY3/13 DPU yield, we believe

yields can still be compressed by another 53 bps from our forecasted

FY3/13 DPU of 6.6%. This dovetails neatly with our DDM-derived TP of

SGD1.17. We are confident that MLT’s stable assets and rental income

resilience will help it navigate the choppy waters ahead. Reiterate BUY.

Mapletree Logistics Trust– Summary Earnings Table

FYE Mar (SGD m) 2011A 2012A 2013F 2014F 2015F

Revenue 218.9 339.5 319.6 331.3 334.4

Net property income 193.0 293.6 268.5 278.3 280.9

Distributable income 130.1 199.9 174.1 176.0 181.2

DPU (cents) 6.1 8.2 7.2 7.3 7.5

DPU growth (%) 1.2 35.3 -12.9 1.1 2.9

DPU yield (%) 5.6 7.6 6.6 6.7 6.9

P/BV(x) 1.3 1.2 1.2 1.2 1.2

Gearing (%)

(Debt to deposited assets)

37.5 35.0 36.4 36.2 36.1

ROE (%) 7.8 14.7 7.9 8.6 8.7

ROA (%) 4.5 7.5 3.9 4.3 4.3

Consensus DPU (S cents) - - 6.9 7.0 7.1

*5Q11: MLT is changing its financial year from Dec to Mar.

Source: Company, Maybank KE

BUY(unchanged)

Share price: SGD1.09

Target price: SGD1.17 (from SGD1.06)

ONG Kian Lin

[email protected]

(65) 6432 1470

Stock Information

Description: Mapletree Logistics Trust is an Asia-focused

logistics real estate investment trust. The Company invests in

a diversified portfolio of income-producing real estate which

is used for logistics purposes.

Ticker: MLT SP

Shares Issued (m): 2,426.3

Market Cap (USD m): 2,101.8

3-mth Avg Daily Turnover (USD m): 4.7

ST Index: 3,010.08

Free float (%): 58.8

Major Shareholders: %

Temasek Holdings 41

Key Indicators

ROE – annualised (%) 7.9

Debt to deposited assets (%): 37

NAV/shr (SGD): 0.90

Interest cover (x): 6

Historical Chart

0.70

0.80

0.90

1.00

1.10

1.20

Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12

MLT SP Equity

Performance:

52-week High/Low SGD0.99/SGD0.80

1-mth 3-mth 6-mth 1-yr YTD

Absolute (%) 8.5 11.8 21.1 25.3 29.0

Relative (%) 9.2 3.3 20.4 16.1 13.3

31 August 2012 Page 3 of 7

Mapletree Logistics Trust

PROFIT AND LOSS (SGD m) BALANCE SHEET (SGD m)

YE Dec 2011A 2012A* 2013F 2014F 2015F YE Dec 2011A 2012A* 2013F 2014F 2015F

Gross Revenue 218.9 339.5 319.6 331.3 334.4 Total assets 3,614.3 4,272.5 4,417.6 4,438.9 4,452.6

Property expenses -25.8 -46.0 -51.1 -53.0 -53.5 Current assets 155.1 214.2 200.5 221.7 235.4

Net Property Income 193.0 293.6 268.5 278.3 280.9 Cash & equivalent 108.4 167.6 160.9 181.5 195.0

Interest income 0.3 0.9 0.7 0.8 0.9 Trade receivables 21.6 25.7 18.6 19.3 19.5

Other income 0.0 0.0 0.0 0.0 0.0 Others 25.1 20.9 20.9 20.9 20.9

Manager's management fees -23.1 -34.4 -32.4 -33.5 -33.9 Non-current assets 3,459.2 4,058.3 4,217.2 4,217.2 4,217.2

Trustee's fee -0.5 -0.7 -0.6 -0.7 -0.7 Investment properties 3,459.2 4,058.3 4,217.2 4,217.2 4,217.2

Other trust expenses -2.4 9.4 -20.1 -5.3 -5.4 Plant & equipment 0.0 0.0 0.0 0.0 0.0

Borrowing costs -29.2 -44.4 -35.4 -36.7 -36.7 Others 0.0 0.0 0.0 0.0 0.0

Others 0.0 0.0 0.0 0.0 0.0 Total liabilities 1,539.1 1,734.8 1,864.4 1,870.7 1,872.3

Net income b/f tax & change in FV 138.1 224.4 180.7 203.0 205.3 Current liabilities 319.3 427.1 419.8 498.6 253.5

Change in FV of Inv Pty 32.1 113.0 0.0 0.0 0.0 Trade and other payables 102.8 152.4 171.3 177.6 179.3

Others 0.0 0.8 5.0 0.0 0.0 Short term borrowings 172.3 243.8 217.8 290.4 43.6

Income tax -13.4 -27.9 -11.2 -11.6 -11.7 Others 44.2 30.9 30.6 30.6 30.6

Total return 162.7 321.8 174.5 191.4 193.6 Long-term liabilities 1,219.8 1,307.7 1,444.6 1,372.0 1,618.9

Non-tax deductibles & o'er adj -32.6 -121.9 -0.3 -15.3 -12.3 Long-term debts 1,181.8 1,251.3 1,388.2 1,315.6 1,562.4

Distributable income 130.1 199.9 174.1 176.0 181.2 Others 38.0 56.4 56.4 56.4 56.4

DPU (cts) 6.1 8.2 7.2 7.3 7.5 Unitholders' funds 2,072.8 2,186.4 2,201.9 2,216.9 2,228.9

Perpetual securities 0.0 344.0 344.0 344.0 344.0

*2011 has a change of FY from Dec to Mar (5 Qtrs) Non-controlling interests 2.4 7.4 7.4 7.4 7.4

CASH FLOW (SGD m) KEY RATIOS

YE Dec 2011A 2012A* 2013F 2014F 2015F YE Dec 2011A 2012A* 2013F 2014F 2015F

Operating cash flows 165.4 305.4 247.2 240.4 238.5 Growth (% YoY)

Total return 162.7 321.8 174.5 191.4 193.6 Sales 5.9 55.1 -5.9 3.7 0.9

Adjustments for NPI 6.8 52.1 -8.6 3.7 0.9

Net interest expense 28.0 41.6 34.7 35.8 35.8 Net income 71.8 97.8 -45.8 9.7 1.1

Depreciation 0.7 1.2 0.0 0.0 0.0 Distributable income 10.3 53.7 -12.9 1.1 2.9

Revaluation of Inv Pty -32.1 -113.0 0.0 0.0 0.0 DPU 1.2 35.3 -12.9 1.1 2.9

Others 2.2 13.4 16.1 11.6 11.7 Profitability (%)

Trade and other receivables -12.7 -3.8 7.0 -0.7 -0.2 NPI margin 88.2 86.5 84.0 84.0 84.0

Trade and other payables 22.0 52.8 18.9 6.3 1.7 Net income margin 74.3 94.8 54.6 57.8 57.9

Income tax paid -5.4 -8.7 -4.0 -4.0 -4.0 ROA 4.5 7.5 3.9 4.3 4.3

Investing cash flows -566.1 -514.0 -120.7 0.8 0.9 ROE 7.8 14.7 7.9 8.6 8.7

PPE 0.0 0.0 0.0 0.0 0.0 Stability

Capex on Inv Pty & others 0.0 0.0 0.0 0.0 0.0 Gross debt/asset (%) 37.5 35.0 36.4 36.2 36.1

Purchase of Pty -565.1 -565.6 -132.0 0.0 0.0 Total debt/Investment Prop 39.1 36.8 38.1 38.1 38.1

Others -1.0 51.7 11.3 0.8 0.9 Int. coverage (X) 5.7 6.1 6.1 6.5 6.6

Financing cash flows 443.3 267.8 -133.2 -220.6 -225.9 Int. & ST debt coverage (X) 0.8 0.9 0.9 0.7 3.0

New Issue proceeds 305.0 0.0 0.0 0.0 0.0 Cash flow int. coverage (X) 5.7 6.9 7.0 6.6 6.5

Borrowing costs -28.2 -38.8 -31.9 -33.0 -33.0 Per share data (Scts)

Net borrowing proceeds 282.8 150.3 110.9 0.0 0.0 EPU 6.7 13.2 7.2 7.9 8.0

Distribution to unitholders -115.5 -190.5 -174.1 -176.0 -181.2 DPU 6.1 8.2 7.2 7.3 7.5

Others -0.8 346.7 -38.2 -11.6 -11.7 CFPS 7 13 10 10 10

Net change in cash 42.6 59.2 -6.7 20.6 13.5 NAV 85.53 90.00 91.00 91.00 92.00

Beginning cash balance 67.4 108.4 167.6 160.9 181.5 SPS 9 14 13 14 14

Forex -1.6 0.0 0.0 0.0 0.0

Ending cash balance 108.4 167.6 160.9 181.5 195.0

Free cash flow 165.4 305.4 247.2 240.4 238.5

Source: Company, Maybank KE