11 Sep 2012 08:41
DJ MARKET TALK: Singapore's STI May Fall; 3000 Likely Tested - OCBC 

0041 GMT [Dow Jones] Singapore's STI may stumble, tracking regional markets' declines amid key event risks this week, including the FOMC meeting and the German court ruling on the eurozone bailout. But volume may be lackluster. "They're all waiting. Everybody is waiting for some signs that more bailout is on the way. We've been saying this may not be a good thing. The market could still be poised for disappointment, even if the bailout does come, if the size doesn't meet market expectations," says Carey Wong, an analyst at OCBC. "While (the Fed is) more accommodative to a QE3, the quantum may not be there because they've seen what happened with QE one and two. They stoked inflation without much (boost) to the economy." He adds, "the market looks a bit fragile above 3000. It looks likely to be tested. The market definitely is looking a bit cautious." The STI ended Monday down 0.1% at 3008.72. Thai Beverage (Y92.SG) said it and a third party are exploring an offer for Fraser & Neave (F99.SG), possibly complicating Heineken's (HEIA.AE) bid for F&N's APB (A46.SG) holdings. Cosco Corp. (F83.SG) landed a more than US$200 million contract for an accommodation rig.
 

11 Sep 2012 08:18
*DJ Midas Holdings Upgraded To Buy From Hold By Maybank-Kim Eng
 
Top 10 stocks with the highest YTD returns
 
The FTSE All Share Index is made up of 179 stocks of various sizes. As of Friday, 39 stocks maintained a market capitalisation above S$3 billion. Market capitalisation is calculated by multiplying the latest price close by the number of shares outstanding. 
 
Of the 39 biggest stocks, the top 10 performing stocks by total return represented five different sectors. These sectors represented Real Estate Holding & Development, Real Estate Investment Trusts, Oil & Gas, Industrials and Consumer Goods. As of the Friday close, the top 10 large cap stocks by total return (including dividends) were as follows:

Keppel Land Ltd (stock code: K17) is a constituent of the FTSE ST Real Estate Holding & Development Index and had generated a 2012 total return of 61.8% as of Friday. Based on the Friday close, the indicative dividend yield of the stock was 5.9% and the stock market cap was S$5.2 billion.
 
CapitaMalls Asia Ltd (JS8), also a constituent of the FTSE ST Real Estate Holding & Development Index, had generated a 2012 total return of 47.1% as of Friday. Based on the Friday close, the indicative dividend yield of the stock was 2.0% and the stock market cap was S$6.3 billion.
 
K-REIT Asia (K71U) invests in office property assets and is a constituent of the FTSE ST Real Estate Investment Trust (REIT) Index. The trust had generated a 2012 total return of 46.8% as of Friday. Based on the Friday close, the indicative dividend yield of the trust was 6.7% and its market cap was S$3.0 billion. Last week the relative performance of the Singapore REIT market was reported by Bloomberg News. Click here to read ‘Singapore REITs Yield World’s Best Returns: Southeast Asia’.
 
CapitaCommercial Trust (C61U) also invests in office property assets and is also a constituent of the FTSE ST REIT Index. The trust had generated a 2012 total return of 43.9% as of Friday. Based on the Friday close, the indicative dividend yield of the trust was 5.6% and its market cap was S$4.0 billion.
 
CapitaLand Ltd (C31), the second largest constituent of the FTSE ST Real Estate Holding & Development Index had generated a 2012 total return of 43.4% as of Friday. Based on the Friday close, the indicative dividend yield of the stock was 2.0% and the stock market cap was S$13.1 billion.
 
Suntec REIT (T82U) invests in retail property assets and is the fourth largest constituent of the FTSE ST REIT Index. The trust had generated a 2012 total return of 42.8% as of Friday. Based on the Friday close, the indicative dividend yield of the trust was 6.5% and its market cap was S$3.3 billion.
 
Sembcorp Industries Ltd (U96) represents the FTSE ST Oil & Gas Index with the energy related activities of its subsidiaries. The stock had generated a 2012 total return of 41.6% as of Friday. Based on the Friday close, the indicative dividend yield of the stock was 2.7% and the stock market cap was S$9.9 billion.
 
First Resources Ltd (EB5) represents the Consumer Goods Index and had generated a 2012 total return of 39.2% as of Friday. Based on the Friday close, the indicative dividend yield of the stock was 1.8% and the stock market cap was S$3.3 billion.
 
Fraser & Neave Ltd (F99) represents the Industrials Index and had generated a 2012 total return of 38.8% as of Friday. Based on the Friday close, the indicative dividend yield of the stock was 2.2% and the stock market cap was S$11.9 billion.
 
Global Logistic Properties Ltd (MC0) is the fourth largest constituent of the FTSE ST Real Estate Holding & Development Index and had generated a 2012 total return of 38.0% as of Friday. Based on the Friday close, the indicative dividend yield of the stock was 1.3% and the stock market cap was S$11.0 billion.
 
Of the 39 stocks that maintained a market capitalisation above S$3 billion, the 4 stocks that had posted year-to-date declines in total return as of Friday were Wilmar International (F34, -37.0%), Genting SP (G13, -10.4%), Olam International (O32, -10.3%) and Golden Agri Resources (E5H, -4.7%).

• Tiger Airways - Reported stable operating numbers for August; expect group to be profitable by last quarter of CY12 (3QFY13). Maintain BUY and S$0.92 TP.

Singapore

Wired Daily

Page 2

We expect gross margins from this project to be around

10% target margins for offshore projects. Chinese yards,

plagued by a dry spell for shipbuilding orders, are turning

towards the offshore sector to keep their yards utilized.

With this project, total YTD order win is US$1.45b, on track

to meet our assumed order wins of US$2b. The group

remains under pressure to top its gross order book of

US$6.1b, given persistent weak outlook in the shipbuilding

industry. Maintain Fully Valued and TP of S$0.88.

Global Logistic Properties has signed a strategic partnership

agreement with Haier Group, the world’s leading home

appliances solutions provider, to develop a state-of-the-art

logistics network for the distribution of household

appliances across China. The partnership will combine GLP’s

leading national platform and solutions with Haier’s strong

market presence. The result will be an expanded customer

base for GLP within the home appliance distribution

industry and further supply chain optimization for Haier.

Vashion Group is placing 900m new shares at an issue price

of S$0.01 per Placement Share for a consideration of

S$4.5m. The issue price represents a premium of 100% to

the volume weighted average price of S$0.005. The

estimated net proceeds of approximately S$8.95m will be

mainly used for business expansion, through acquisitions

and/or investments in new companies and/or capital

expenditure.

Share Buy-Back

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

GK Goh Holdings 10-Sep-12 Share Buy-Back 87,000 0.7250

Pan-United Corporation Ltd 10-Sep-12 Share Buy-Back 100,000 0.6500

Global Testing Corporation 10-Sep-12 Share Buy-Back 907,000 0.0630

Overseas-Chinese Banking Corp 10-Sep-12 Share Buy-Back 100,000 9.3100

Avi-Tech Electronics Limited 10-Sep-12 Share Buy-Back 237,000 0.0750

CDW Holdings 10-Sep-12 Share Buy-Back 150,000 0.0940

HG Metal Manufacturing Ltd 10-Sep-12 Share Buy-Back 433,000 0.0830

Kinergy Ltd 07-Sep-12 Share Buy-Back 48,000 0.1750

Overseas-Chinese Banking Corp 07-Sep-12 Share Buy-Back 31,000 9.3300

GK Goh Holdings 07-Sep-12 Share Buy-Back 95,000 0.7250

CDW Holdings 07-Sep-12 Share Buy-Back 472,000 0.0934

Viking Offshore and Marine Ltd 07-Sep-12 Share Buy-Back 50,000 0.1090

Macquarie Int'l Infra Fund Ltd 07-Sep-12 Share Buy-Back 2,500,000 0.5300

Wee Hur Holdings 07-Sep-12 Share Buy-Back 442,000 0.2756

Sarin Technologies 07-Sep-12 Share Buy-Back 100,000 0.9000

CDW Holdings Limited 06-Sep-12 Share Buy-Back 162,000 0.0931

Overseas-Chinese Banking Corp 06-Sep-12 Share Buy-Back 87,000 9.1800

Avi-Tech Electronics Limited 06-Sep-12 Share Buy-Back 100,000 0.0750

Viking Offshore and Marine Ltd 06-Sep-12 Share Buy-Back 190,000 0.1080

Macquarie Int'l Infra Fund Ltd 06-Sep-12 Share Buy-Back 150,000 0.5300

Sarin Technologies 05-Sep-12 Share Buy-Back 100,000 0.9150

Singapore Press 05-Sep-12 Share Buy-Back 500,000 3.9600

Macquarie Int'l Infra Fund Ltd 05-Sep-12 Share Buy-Back 470,000 0.5300

KS Holdings 05-Sep-12 Share Buy-Back 107,000 0.2250

Overseas-Chinese Banking Corp 05-Sep-12 Share Buy-Back 100,000 9.1400

CDW Holdings 05-Sep-12 Share Buy-Back 100,000 0.0920

Global Testing Corporation 05-Sep-12 Share Buy-Back 554,000 0.0630

San TehLimited 05-Sep-12 Share Buy-Back 309,000 0.2900

Straco Corporation Limited 05-Sep-12 Share Buy-Back 10,000 0.2200

Viking Offshore and Marine Ltd 05-Sep-12 Share Buy-Back 30,000 0.1090

Sarin Technologies 04-Sep-12 Share Buy-Back 88,000 0.9200

Macquarie Int'l Infra Fund Ltd 04-Sep-12 Share Buy-Back 3,000,00 0.5300

Viking Offshore and Marine Ltd 04-Sep-12 Share Buy-Back 30,000 0.1080

Second Chance Properties Ltd 04-Sep-12 Share Buy-Back 551,000 0.3950

Overseas-Chinese Banking Corp 04-Sep-12 Share Buy-Back 100,000 9.2200

CDW Holding Limited 04-Sep-12 Share Buy-Back 20,000 0.0920

Source: SGX Masnet

Singapore

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Substantial Shareholders’ Transactions: 31 Aug – 6 Sep 2012

Stock Transacted Date Substantial Shareholder/ Director

Buy/Sell/

Conv

No of

Shares

('000)

Price Per

Share $

%Issued Cap

Before

Change

%Issued Cap

After Change

Jiutian Chemical 06-Sep-12 Anyang Longyu (HK) Dev * Buy 500 na 28.52 28.55

Pacific Healthcare 06-Sep-12 Pacific Investments Buy 100 na 7.55 7.58

Contel Corp 05-Sep-12 Joanne Ng Sell 7150 na 7.46 6.12

Memstar 05-Sep-12 Hong Pian Tee Buy 611 0.06 0.08 0.1

Perennial China Retail Trt 05-Sep-12 Kuok Khoon Hong * Buy 500 0.48 16.96 17

Perennial China Retail Trt 05-Sep-12 Pua Seck Guan * Buy 500 0.48 3.97 4.01

Raffles Education 05-Sep-12 Chew Kok Chor Buy 20 0.31 0.06 0.06

8Telecom Int'l 04-Sep-12 Ye Tianyun Buy 105 0.14 2.56 2.59

KS Energy 04-Sep-12 Richard James Wiluan * Buy 40 na 55.39 55.4

KS Energy 04-Sep-12 Rija Holdings * Buy 40 na 55.39 55.4

KS Energy 04-Sep-12 Kris Taenar Wiluan * Buy 40 na 55.39 55.4

LHT Holdings 04-Sep-12 Neo Koon Boo Buy 1000 0.14 22.25 22.72

LHT Holdings 04-Sep-12 Yap Mui Kee Buy 1010 0.14 11.52 12

LionGold Corp 04-Sep-12 Dato Md Wira Dani * Buy 900 1.26 5.11 5.22

Pacific Healthcare 04-Sep-12 Pacific Investments Buy 68 na 7.53 7.55

Pacific Healthcare 04-Sep-12 Willian Cheong * Buy 68 0.1 11.9 11.92

Perennial China Retail Trt 04-Sep-12 Kuok Khoon Hong * Buy 393 0.48 16.92 16.96

Perennial China Retail Trt 04-Sep-12 Pua Seck Guan * Buy 393 0.48 3.93 3.97

Sakari Resources 04-Sep-12 PTT Mining , PTT Public Co Ltd Buy 26185 na 8.74 11.04

ABR Holdings 03-Sep-12 Ang Yee Lim Buy 190 0.63 40.07 40.16

BRC Asia 03-Sep-12 Lau Eng Tiong * Buy 900 0.13 8.16 8.27

BRC Asia 03-Sep-12 Lau Eng Lin * Buy 900 0.13 8.16 8.27

BRC Asia 03-Sep-12 Lau Eng Hoe * Buy 900 0.13 8.16 8.27

BRC Asia 03-Sep-12 Lau Eng Seng * Buy 900 0.13 8.16 8.27

BRC Asia 03-Sep-12 Sin Teck Guan Pte Ltd Buy 900 na 8.16 8.27

CSE Global 03-Sep-12 Amundi S A Buy 456 na 5.95 6.04

CSE Global 03-Sep-12 Amundi Group * Buy 456 na 5.95 6.04

LionGold Corp 03-Sep-12 Nomura Holdings * Buy 1300 na 4.87 5.03

LionGold Corp 03-Sep-12 Nomura Int'l Plc * Buy 800 1.24 1.05 1.15

LionGold Corp 03-Sep-12 Nomura Int'l Plc Buy 500 1.24 3.81 3.87

Perennial China Retail Trt 03-Sep-12 Kuok Khoon Hong * Buy 100 0.48 16.92 16.92

Perennial China Retail Trt 03-Sep-12 Pua Seck Guan * Buy 100 0.48 3.92 3.93

Swing Media Tech 03-Sep-12 Janies Ip * Buy 110 na 23.84 23.87

Swing Media Tech 03-Sep-12 Hui Yan Moon Buy 110 0.1 0.52 0.55

8Telecom Int'l 31-Aug-12 Ye Tianyun Buy 198 0.14 2.52 2.56

AVI-Tech Electronics 31-Aug-12 Goh Chung Meng Buy 100 0.07 0.02 0.05

Fujian Zhenyun 31-Aug-12 Lim Cheng Kee Buy 30 0.14 0 0.03

Hartawan Hldgs 31-Aug-12 Winstedt Chong Buy 41 0.14 0.08 0.08

Haw Par 31-Aug-12 Han Ah Kuan Sell 10 6.32 0.03 0.02

HLN Technologies 31-Aug-12 Wa Kok Liang Buy 12 na 14.25 14.25

KS Energy 31-Aug-12 Richard James Wiluan * Buy 60 na 55.38 55.39

KS Energy 31-Aug-12 Rija Holdings * Buy 60 na 55.38 55.39

KS Energy 31-Aug-12 Kris Taenar Wiluan * Buy 60 0.75 55.38 55.39

KS Energy 31-Aug-12 Pacific One Energy Buy 60 0.75 55.38 55.39

M Development 31-Aug-12 Value Capital Asset Mgtm Sell 173010 na 14.6 0

M Development 31-Aug-12 Lin Chung Ming Buy 150546 na 11.5 24.24

Perennial China Retail Trt 31-Aug-12 Kuok Khoon Hong * Buy 307 0.47 16.88 16.92

Perennial China Retail Trt 31-Aug-12 HPRY Hldgs * Buy 307 0.47 13.66 13.68

Perennial China Retail Trt 31-Aug-12 Pua Seck Guan * Buy 307 0.47 3.69 3.71

Petra Foods 31-Aug-12 Aberdeen Asset Mgtm * Buy 1218 na 6.87 7.07

Petra Foods 31-Aug-12 Aberdeen Asset Mgtm Asia * Buy 1218 na 6.87 7.07

*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 4

Announced Dividends and Capital Issues: 12 Sep 2012 – 22 Nov 2012 (by Ex-Date)

Company Type Particulars Ex Date Paid/ Payable

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

LANTROVISION (S) LTD RIGHTS OFFER OF 12 FOR 1 @ SGD 0.09 17-Sep-12

CDW HOLDING LIMITED DIVIDEND USD 0.005 18-Sep-12 05-Oct-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 0.02375 20-Sep-12 01-Oct-12

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

SIA $300M 2.15%B150930 BONDS INT 300312 - 310812 2.15% 24-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

AMTEK ENGINEERING LTD DIVIDEND SGD 0.022 ONE-TIER TAX 01-Nov-12 23-Nov-12

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

SINGAPURA FINANCE LTD DIVIDEND SGD 0.06 ONE-TIER TAX 01-Nov-12 15-Nov-12

SPINDEX INDUSTRIES LIMITED DIVIDEND SGD 0.018 ONE-TIER TAX 02-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

HUPSTEEL LTD DIVIDEND SGD 0.005 ONE-TIER TAX 05-Nov-12 20-Nov-12

EU YAN SANG INTERNATIONAL LTD DIVIDEND SGD 0.01 ONE-TIER TAX 06-Nov-12 23-Nov-12

EU YAN SANG INTERNATIONAL LTD DIVIDEND SGD 0.01 ONE-TIER TAX 06-Nov-12 23-Nov-12

MICRO-MECHANICS (HOLDINGS) LTD DIVIDEND SGD 0.02 ONE-TIER TAX 06-Nov-12 22-Nov-12

OLAM INTERNATIONAL LIMITED DIVIDEND SGD 0.04 ONE-TIER TAX 06-Nov-12 20-Nov-12

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

SILVERLAKE AXIS LTD DIVIDEND SGD 0.008 ONE-TIER TAX 07-Nov-12 28-Nov-12

ACE ACHIEVE INFOCOM LIMITED DIVIDEND CNY 0.003 09-Nov-12 28-Nov-12

NX09100W 190601 INTEREST 0.025 22-Nov-12 03-Dec-12

NX11100X 210601 INTEREST 0.0225 22-Nov-12 03-Dec-12

Source: SGX

11 September 2012

Disclaimer:

DMG & Partners Securities Pte Ltd may have received compensation from the companies covered in this report

for its corporate finance or its dealing activities; this report is therefore classified as a non-independent report.

Please refer to important disclosures at the end of this publication.

g

Morning Matters

Figure of the Day

Source: google.com

More action ahead? See 'Scoop of the Day'.

Market Indices

Value Chg % Chg

Dow Jones 13,254.3 -52.35 -0.39

S&P 500 1,429.1 -8.84 -0.61

Nasdaq 3,104.0 -32.40 -1.03

FTSE 100

5,793.2 -1.60 -0.03

Nikkei 8,869.4 -2.28 -0.03

Hang Seng 19,827.2 +25.01 +0.13

Shanghai 2,134.9 +7.13 +0.34

KOSPI 1,924.7 -4.88 -0.25

STI 3,008.7 -2.98 -0.10

KLCI 1,621.0 -3.51 -0.22

Key Indicators

Value Chg % Chg

Oil Price*

(US$/bbl)

96.54 +0.12 +0.12

Gold Price**

(US$/oz)

1726.25 -9.40 -0.54

US$/S$ 1.2369 +0.00 +0.09

* WTI Crude Future

** Gold Spot

While You Were Sleeping

US markets: Negative

Dow futures: -3 (as at 8am Singapore Time)

US Wrap: The major U.S. equity indices finished lower Monday as

disappointing economic data from both at home and China prompted a mild

bout of profit-taking ahead of the Federal Reserve's policy meeting later this

week. The Dow Jones Industrial Average lost more than 52 points, or 0.39%,

to close at 13,254. Notable stock movements include Intel which gave back

3.9%, extending Friday's losses after the world's biggest semiconductor

company lowered its financial outlook, citing challenging macroeconomic

conditions. The S&P 500 fell 9 points, or 0.61%, to settle at 1429. The

Nasdaq was off more than 32 points, or 1.03%, at 3104. October crude oil

futures fell 12 cents to settle at $96.54 a barrel and December gold futures

settled down $8.70 at $1,731.80 an ounce.

The Day Ahead…

Scoop of the Day: In response to media articles that Thai Bev is seeking

debt funding to mount a takeover of F&N, the former put out an

announcement this morning that: 1) It is seeking re-financing proposals for its

S$2.8b bridging loan taken earlier to finance its acquisition of F&N shares

and that it is not seeking funding for a potential general offer for F&N; 2) It is

exploring the possibility of making an offer for F&N with a party acting in

concert. Thai Bev has to date spent S$3.6b to build up a 29% stake in F&N

and the reminder could cost an additional S$9b, using the $8.88/F&N share

that it purchased from OCBC/GE as a reference. Given Thai Bev’s S$3b

equity base, we believe it would be stretched financially to make a sole bid

for F&N, hence the potential joint offer with another party. A key reason to

secure control over F&N at this stage would be to block F&N’s stake of its

39.7% stake in APB to Heineken. In many ways, F&N offers a solid regional

platform for Thai Bev to accelerate its regionalisation strategy in both

brewery and non-brewery businesses. Besides market leading positions in

soft drinks and dairies in Singapore, Malaysia and Thailand, F&N also has

distribution reach in emerging markets such as Vietnam and Myanmar

through its stake in Vinamilk and Myanmar Brewery. Cross-selling

opportunities between Thailand and overseas markets in beer and nonalcoholic

businesses could create meaningful revenue synergies for the

enlarged group. F&N should see some trading upside given the possibility of

a general offer by Thai Bev and its related parties. (Goh Han Peng)

WHAT’S INSIDE?

On The Platter

Hi-P International: Battle of gadgets, Hi-P's a sure bet (BUY, S$0.92, TP:

S$1.28)

Insider Trade Highlights 10 Sep 12

Diary of Events

11 September 2012

See important disclosures at the end of this publication

2

DMG Research

On the Platter

Hi-P International: Battle of gadgets, Hi-P's a sure bet (BUY, S$0.92, TP: S$1.28)

Edison Chen (+65 6232 3892, [email protected])

Terence Wong, CFA (+65 6232 3896, [email protected])

The month of September promises to be a very exciting one for consumers. With major OEMs like

Apple, Motorola, Amazon, Nokia launching a new generation of signature products, the new battle

for mobile device market share has begun. Out of the three OEMs that have unveiled new

products, the market has voted with two winners and one loser emerging. The two winners,

Motorola and Amazon, are believed to be amongst Hi-P’s top three customers, along with Apple.

And let us not write off Hi-P’s former largest customer just yet. Research In Motion (RIM) could still

rebound from the launch of BlackBerry (BB) 10 in the first quarter of next year. As such, we

believe that Hi-P is poised for phenomenal growth starting from 2H2012 onwards.

Supplier of the winners. The launch of Nokia’s Lumia 820 and 920, two of the first Windows 8

phones, were plagued with problems such as unclear availability dates and a fake demo video.

Share price of Nokia plummeted by 13% post-announcement. The two winners include

Google/Motorola’s Droid series and Amazon’s new Kindle Fire HDs, with the post-launch share

price of Amazon surging by 3.1% to a record high level, and Motorola Solutions by 4%. Leaving

the functions aside, we opine that Amazon and Motorola’s new flagship products possess form

factors that are more appealing to the consumers. We believe that both Motorola and Amazon are

currently amongst Hi-P’s top 3 customers beside Apple. Together with Apple’s highly anticipated

unveiling of iPhone5, Hi-P is in a favourable position like no other.

Let’s not write RIM off. RIM’s BlackBerry 10 may yet be able to restore part of its market share.

Last Friday, Verizon Wireless has announced that it will carry RIM’s new BB10 smartphone when

launched early next year. The largest U.S. wireless carrier is apparently backing RIM’s bet on the

BB10 model with an all time favourite keyboard as well as a full touchscreen version. If BB10

takes off, Hi-P will be amongst the first to benefit.

11 September 2012

See important disclosures at the end of this publication

3

DMG Research

Company Insider No. of Shares

Share Price

(S$)

% Stake before

transaction

% Stake after

transaction

COGENT HOLDINGS Tan Yeow Khoon 650,000 0.107 67.907 68.043

GIKEN SAKATA Tan Kay Guan 200,000 na 0.250 0.400

LUYE PHARMA GROUP Luye Pharmaceutical Investment Co., Ltd. 11,700,000 na 92.630 95.000

PACIFIC HEALTHCARE HLDGS PACIFIC INVESTMENTS 170,000 na 7.580 7.620

PERENNIAL CHINA RETAIL TRUST Kuok Khoon Hong 700,000 0.477 17.066 17.128

AVI-TECH ELECTRONICS Share Buy-Back 237,000 0.075 na 0.240

CDW HOLDING Share Buy-Back 150,000 0.094 na 1.560

GLOBAL TESTING CORPORATION Share Buy-Back 907,000 0.063 na 1.281

HG METAL MANUFACTURING Share Buy-Back 433,000 0.083 na 1.441

OCBC Share Buy-Back 100,000 9.310 na 0.323

PAN-UNITED CORPORATION Share Buy-Back 100,000 0.650 na 1.320

Company Insider No. of Shares

Share Price

(S$)

% Stake before

transaction

% Stake after

transaction

Sale

BIOSENSORS INT'L GROUP FMR LLC 227,000 na 5.010 4.990

JAYA Octavian Advisors 5,421,955 na 5.050 4.340

SRI TRANG AGRO-INDUSTRY PCL Prasit Panidkul 300,000 0.592 0.634 0.611

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

## Married deal.

Purchase

INSIDER TRADES HIGHLIGHT FOR 10 Sep 12