Tuesday, May 30, 2006

Stock Earnings: Thakral Corp

Consumer electronics distributor Thakral Corp Ltd's year to March results:

Revenue - 391.68 mln sgd vs 522.31 mln
Pretax loss - 10.51 mln sgd vs profit 22.59 mln
Net loss - 32.59 mln sgd vs profit 18.50 mln
Loss per share - 1.82 cents vs EPS 1.23
Fourth quarter to March results:
Revenue - 73.04 mln sgd vs 131.84 mln
Pretax loss - 442,000 sgd vs profit 7.42 mln
Net loss - 7.28 mln sgd vs profit 4.74 mln
Loss per share - 0.40 cents vs EPS 0.31

Stock Earning: Giant Wireless Tech

Hong Kong-based Giant Wireless Technology Ltd's year to March results:

Sales - 4.42 bln hkd vs 3.21 bln
Pretax loss - 48.12 mln hkd vs profit 122.06 mln
Net loss - 68.52 mln hkd vs profit 91.78 mln
Loss per share - 0.1360 hkd vs EPS 0.1822
Fourth quarter to March results:
Sales - 1.05 bln hkd vs 782.02 mln
Pretax loss - 20.07 mln hkd vs profit 28.68 mln
Net loss - 27.82 mln hkd vs profit 20.54 mln
Loss per share - 0.0566 hkd vs EPS 0.0405

Stock Upgraded: SGX target price raised to 4.27!

CIMB-GK Research said it has upgraded its price target for Singapore Exchange (SGX) to 4.27 sgd per share from 4.15 sgd previously. It also hiked its rating on the stock to "neutral" from "underperform" as robust trading volumes are continuing even after the market's recent heavy slide. "We stress that poor equity sentiment does not equate (to) poor stock market volumes. Although the Straits Times index has fallen 6 pct from its peak in the past two weeks, the selldown was actually accompanied by a good pickup in market volumes," CIMB-GK said in a note to clients. "This only bodes well for SGX's earnings. Even if stock market volumes slow in June, SGX looks well-poised to equal its third quarter to March record earnings (in the current quarter to June)," it said. At 9.48 am, SGX was flat at 4.02 with 562,000 shares traded.

Stock Buy Call: Hong Guo fair value raise to -/95 by JP Morgan!

JP Morgan said it has initiated coverage of China-based shoemaker and retailer Hongguo International with a "buy" rating and fair value of 0.85 sgd per share. "We see Hongguo as an undervalued and under-covered Chinese retailer listed in Singapore," JP Morgan said. "Sustainable and possibly improving margins should drive earnings growth and an appreciation in returns on capital, which we believe would drive a continued re-rating of its stock price," it said. JP Morgan said it expects Hongguo's net profit to rise from 71 mln yuan last year to 90 mln yuan this year and 117 mln yuan next year. At 10.28 am, Hongguo was up 0.04 sgd or 8.25 pct at 0.525 with 3.94 mln shares traded.

Stock Hold Call: Samudera Shipping fair value of 0.42 by Philips Securities!

Phillip Securities said it has given Samudera Shipping Line a "hold" rating and a fair value of 0.42 sgd in light of falling freight rates and excess capacity in the shipping industry. Samudera serves Asia, operating mainly as a feeder line. "The industry's bleak outlook and the lack of significant earnings growth catalysts will hamper any upward price movement," Phillip said in a note to clients. "The feeder service business is subject to a dual threat of softer freight rates and rising bunker prices. We expect these two trends to continue for the rest of the year. Rates will not improve as supply outpaces demand through to the next year," the note said. Phillip said higher fuel costs may dim this outlook by eroding margins. At 10.50 am, Samudera was down 0.005 sgd at 0.38, on volume of 209,000 shares.

Stock Buy Call: Tat Hong Holdings target price raised to 1.3 by DBS Equity Research!

DBS Equity Research said it has raised its target price for Tat Hong Holdings Ltd, which leases heavy equipment, to 1.30 sgd from 1.22 sgd after it reported strong results for the year to last March, reflecting robust demand in the Asia-Pacific region. In a note to clients, DBS said it is keeping its "buy" rating for Tat Hong, as demand should continue to grow over the next 2-3 years. It forecasts that the group's core earnings will grow 12 pct in the year to March 2007 and by 18 pct in the year to March 2008. "We expect the Middle East and emerging southeast Asian economies to lead demand for heavy equipment, given the large amount of infrastructure projects slated for development in these regions," DBS said. "Closer to home, Singapore's construction industry is also turning for the better," it said. At 11.09 am, Tat Hong was flat at 0.93 sgd, on volume of 890,000 shares.

Stock News: Capitaland to invest 350 mln yuan in joint venture!

CapitaLand Ltd said it, through unit CapitaLand China Holdings Pte Ltd, has entered into an agreement with Chengdu Zhixin Industrial Co Ltd to form a 50-50 joint venture real estate company in China. CapitaLand China and Chengdu Zhixin will each invest 350 mln yuan into the joint venture company, Zhixin CapitaLand Co Ltd, it said. The Singapore-based firm's subsidiary will also provide a shareholder's loan of about 1.09 bln yuan. Zhixin CapitaLand has identified an initial five to seven development projects in Chengdu in China's Sichuan province with a potential gross floor area of up to 4.5 mln square meters, which will yield a pipeline of about 25, 000 homes from now until 2014, it said. "We target to launch the first project by this year. Currently, CapitaLand has about 8,000 homes in the pipeline spanning across Beijing, Shanghai, Guangzhou, Ningbo and Hangzhou," CapitaLand president and chief executive officer Liew Mun Leong said in a statement. "This joint venture, together with our stake in Lai Fung Holdings, will triple our residential development pipeline. We expect to see positive contribution from these two transactions from 2007," Liew said.

Stock News: Fabchem buys manufacturing facilities!

Fabchem China to buy manufacturing facilities in Shandong Fabchem China Ltd, a manufacturer of explosives for the mining and construction industries, has entered into a sale and purchase agreement to buy manufacturing facilities worth 12.2 mln yuan in Shandong Province, China. The facilities with a built-up area of about 8,551 square meters, will be able to produce about 3,000 tonnes of its new product, Seismic Charges, each year and contribute 30.5 mln yuan to Fabchem's revenue yearly. The estimated increase in revenue is expected to have a positive impact on Febchem's earnings for the financial year ending March 2007, the company said.

Stock News: Twinwood Eng in conditional share purchase deal!

Twinwood Engineering Ltd said it has entered into a conditional share purchase deal with Hup Soon Global Pte Ltd for 79.2 mln sgd via the issue of about 3 bln shares at 0.0264 sgd each. The deal will result in Hup Soon Global, a privately-owned marketing and distribution group, owning 77 pct of Twinwood. "This deal is timely and transformational for Twinwood. In one fell swoop, it will become a serious player in the automotive consumables, industrial supplied, agricultural tractors and forklift distribution business in two fast-growing Asian countries, namely Thailand and Malaysia," said Twinwood chairman Anil Thadani, who concurrently chairs Symphony Capital Partners (Asia) Ltd. The stake of a private equity fund, advised by Symphony Capital Partners, in Twinwood will fall to 17 pct from 75 pct after the deal, it said. Twinwood said it has also proposed to consolidate every ten shares into one share and will seek to transfer its listing to the main board of the Singapore Exchange from Sesdaq.

Stock Hold Call: Multi-Chem Ltd with target price of 0.27 by DMG!

Multi-Chem Ltd may fall after DMG & Partners Securities gave the chemical supplier a "hold" rating in its initial coverage, citing slower earnings growth compared to peers. Target price was set at 0.27 sgd. "We note that Multi-Chem's earnings growth is slower than its Singapore-listed brethren in the similar business of providing services for PCB manufacturers. Consequently, potential upside gain is smaller," DMG said. Multi-Chem closed flat at 0.220 sgd yesterday.

Stock Buy Call: Techcomp with a price target of 0.4 by NetResearch Capital!

Techcomp (Holdings) Ltd may gain after NetResearch Capital initiated coverage with a "buy" call and a target price of 0.40 sgd. NetResearch said the manufacturer of medical laboratory instruments is well positioned for growth, citing research by Strategic Directions International that shows the worldwide demand for analytical and life science instruments reached 29 bln usd last year, and is expected to grow by 5.5 pct this year. "The growth in revenue and net profit will be mainly driven by more original equipment manufacturer contracts currently pursued by Techcomp," it said. Techcomp closed unchanged at 0.280 sgd yesterday.

Monday, May 29, 2006

Stock downgraded: Biosensor target price reduces to 1.29 by UOB Kay Hian!

Recommendation: BUY (maintained) Price:
S$0.815 Target:
S$1.29 (previous S$1.61)

With management's guidance on higher R&D expenses and an assumed delay in the BioMatrix CE mark, we have made significant downward revisions to our forecasts. Despite this, we maintain our BUY recommendation, albeit with a lowered target price of S$1.29 as our valuation is pegged primarily to FY08 forecasts on DES sales.
Management's FY07 expense guidance. In today's meeting with management, Biosensors' CFO guided that R&D expenses for FY07 would be between US$33-36m, including costs of filing for IDE with the US FDA, and US$23-26m related to the LEADERS and STEALTH II trials. Sales and marketing expenses are projected at between US$14-18m for FY07, of which about 60% would be related to exhibitions, conferences and DES patient registries for clinical data collection. The remainder 40% of sales and marketing expenses would relate to headcount, commissions and sales calls. The other major expense item is general and administrative expenses, which management guided to be around US$13-14m, which would include setting up of its ERP system to connect all its offices globally.
Forecast revisions. The following table shows our revised net profit forecasts. While we had previously expected FY07 to be profitable, our financial model now shows that the assumed delay in the BioMatrix CE mark and higher R&D expenses from clinical trials will push FY07 into the red. Thus, we expect Biosensors to only turn profitable in FY08, with a much lower net profit of US$50.3m vs US$79.0m previously.

Stock New: Tat Hong FY net profit more than double!

Tat Hong Holdings was higher after the supplier of cranes and other heavy equipment reported that its year to March net profit more than doubled year-on-year to 44.25 mln sgd, bolstered by exceptional gains and higher sales. dealers said. The stock was also rising on the back of its increased dividend payout, with the company declaring a special and ordinary final dividend of 0.027 sgd per share, up from 0.012 sgd in the previous year. "We are delighted to have set a new record full year net profit of 44.25 mln sgd in the year to March 2006. We continued to benefit from the strong growth in the energy resources and infrastructure sectors in Asia-Pacific, which fuelled demand for our cranes and heavy equipment," Tat Hong president and CEO Roland Ng said. Tat Hong was up 0.015 sgd or 1.60 pct at 0.95 with 583,000 shares traded.

Stock News: Genting Int hot favourite to win sentosa IR!

Genting International and its partner Star Cruises stand a better chance of winning the licence for the second casino/resort project on Sentosa Island, CIMB-GK Research said in a note to clients. Genting/Star Cruises along with CapitaLand/MGM Mirage and Keppel Land/Harrahs lost out on the bidding for the first casino licence at Marina Bay which was awarded to Las Vegas Sands. "We believe that Las Vegas Sands' win is a much bigger blow for CapitaLand and Keppel Land, simply because Genting International had been considered an outsider (for the Marina Bay licence) from day one," CIMB-GK analyst Steven Tan said. "The fact, that the Singapore government selected Las Vegas Sands is a clear indication that the merits of the proposal in achieving the desired economic and tourism objectives far outweigh political connections," Tan said. Both CapitaLand and Keppel Land, which are controlled by state-linked Singapore investment firm Temasek Holdings, had been seen as strong contenders for both projects. "In view of this scenario, it appears that Genting/Star Cruises would have a better chance to win the Sentosa project as it presently appears to have the most compelling proposal on paper given its exclusive tie-up with Universal Studios," CIMB-GK said. "It was previously thought that Genting's chances could be marginalized by its Malaysian connections, but this may be a less contentious issue going by the latest developments, which suggest that a proposals merits are top priority," it added. At 9.52 am, Genting International was up 0.005 sgd or 1.49 pct at 0.34 with 1.26 mln shares traded, while Star Cruises was down 0.015 usd or 6.67 pct at 0.21 with 414,000 shares traded.

Stock Downgraded: CapitaLad and Keppel Land downgraded by CIMB-GK!

CIMB-GK Research has cut its target prices for CapitaLand and Keppel Land after the two firms' lost out in their bids for the first casino licence at Marina Bay to Las Vegas Sands. The brokerage firm however maintained its "outperform" rating for CapitaLand and Keppel Land given their strong fundamentals. In a client note, CIMB-GK cut its target price for CapitaLand by 0.17 sgd to 5.48 sgd. It also cut its target price for Keppel Land by 0.16 sgd to 5.74. "We believe their fundamentals are not affected by this (bidding) loss. We like CapitaLand for its leadership position in the high-growth property fund management business, continued growth in its Asian markets, and its focus on improving ROEs by recycling its capital," CIMB-GK said. "We like Keppel Land for its proxy to the resurgent Singapore office market, exposure to other Asian housing markets and its growing fund management business." At 11.00 am, CapitaLand was down 0.34 sgd or 7.7 pct at 4.08 on volume of 24.716 mln shares. Keppel Land was down 0.38 sgd or 8.2 pct at 4.24 on volume of 7.675 mln shares.

Stock Earnings: Hengxin Tech net profit doubled!

Chinese-based Hengxin Technology Ltd said its net profit last year more than doubled to 56.36 mln yuan from 27.34 mln yuan the year before because of strong sales and in the absence of a huge tax charge. Sales rose 22.9 pct to 468.04 mln yuan, with revenue from radio-frequency coaxial cables accounting for 68.6 pct. Sales of telecommunications equipment accounted for nearly a third. Hengxin incurred no tax charge last year, while there was a 17.98 mln yuan tax charge in 2004. The company said that overall group gross profit margin was maintained at about 22 pct. "We will continue to tap on the immense opportunities in rapidly growing telecommunications markets such as China," Hengxin Technology chairman and chief executive Qian Lirong said in a statement. He said Hengxin hopes to increase its share of the Chinese market as cellphone penetration there remains relatively low. The expected issuance of third-generation cellphone service licenses in China gives Hengxin another opportunity to increase its market share, Qian said. He said Hengxin intends to tap other developing markets such as India, the Middle East, Africa and South America in the next 1-2 years.

Hengxin Technology Ltd's results for 2005:
Sales - 468.04 mln yuan vs 380.81 mln
Pretax profit - 56.36 mln yuan vs 45.31 mln
Net profit - 56.36 mln yuan vs 27.34 mln
EPS - 0.0331 sgd vs 0.0161
Final div - 0.0033 sgd vs nil

Stock News: Peal Energy is expected to be delisted!!

PEARL Energy is expected to delist from the Singapore Exchange with its free float now below 10 pct, after Aabar Petroleum Investments Co PJSC raised its stake in the oil exploration firm to 96.93 pct. The Singapore bourse requires an issuer to ensure that at least 10 pct of listed equity securities are at all times held by the public. United Arab Emirates' Aabar, which previously held a 48.29 pct stake in PEARL, said it has raised its interest in the company to 96.93 pct through a mandatory unconditional cash offer to shareholders.

Stock Upgraded: Man Wah upgraded to buy by Kim Eng securities!

Man Wah Holdings Ltd may gain after Kim Eng Securities unit Kelive raised its rating on the Hong Kong-based sofa maker to "buy" from "hold," with a target price of 0.55 sgd. DMG & Partners Securities also changed its rating on Man Wah to "buy" from "hold," with a target price of 0.60 sgd. Man Wah rose 0.020 sgd to close at 0.450 on Friday.

Stock News: Lippo Property Investment buy over OUE!

Overseas Union Enterprises Ltd (OUE) may gain after Lippo Property Investment Pte Ltd, an investment vehicle controlled by Indonesia's Lippo Group, made a mandatory takeover offer to buy the rest of the company at 10.20 sgd per share. Lippo Property made the offer after buying 55 pct of OUE from United Overseas Bank Ltd for 989.86 mln sgd, or 10.20 sgd apiece. Under Singapore rules, investors accumulating more than 30 pct stake in listed companies are required to make a mandatory takeover offer. Lippo Property, which is 60 pct owned by the Lippo Group and 40 pct by Usaha Tegas Sdn Bhd, an investment vehicle owned by Malaysian businessman Ananda Krishnan, needs about 1.8 bln sgd to buy the whole of OUE. The Lippo Group has been actively investing in Singapore. Last month, its unit Auric Pacific Group bought a 29.9 pct stake, or 25. 71 mln shares, in retailer Robinson and Co for 203 mln sgd, or 7.90 sgd per share.

STock News: Substantial shareholder buy over NatSteel Ltd!

NatSteel Ltd may gain when it resumes trading after Indonesian businessman Oei Hong Leong offered to buy the rest of the company for 1.30 sgd per share, dealers said. Oei made the offer after the combined shareholdings of Oei Hong Leong Foundation and sister company Sanion Enterprises Ltd in Natsteel reached 30. 02 pct. Under Singapore rules, investors accumulating more than 30 pct of listed companies are required to make a mandatory takeover offer. Plans by NatSteel unit Kilby Associates to sell some of its shares in Banyan Tree may also boost sentiment on NatSteel shares, dealers said. Banyan Tree, a manager and developer of resorts, hotels and spas, is selling 380.12 mln new and vendor shares at up to 1.07 sgd each through an initial public offering. The IPO comprises 101.83 mln new shares and 278.29 mln vendor shares. Kilby Associates is planning to sell up to 71.23 mln Banyan Tree shares. It currently holds 81.14 mln shares. Banyan Tree's IPO price will be fixed on June 8 and trading on the Singapore Exchange will begin June 14.

Friday, May 26, 2006

Stock Earnings: Biosensor net loss of 22.47 mln!

SINGAPORE (XFN-ASIA) - Biosensors International Group said it incurred a net loss of 22.47 mln usd for the year to last March, reversing a net profit of 20.03 mln usd the year before, because of accelerated expenses for the clinical trials of its drug-eluting stents (DES) and a drop in licensing revenue. Sales declined 47 pct year-on-year to 37.85 mln usd. "This was due to the decrease in non-recurring licensing revenue from milestone payments of 40.8 mln usd," Biosensors said in a statement. Licensing revenue fell to 9.3 mln usd from 50.1 mln usd a year before. "[This] is consistent with the management's expectations, given that most licensing milestone payments have already been received," it said. Research and development expenses rose by 9.6 mln usd to 19.2 mln usd because of increased investment in clinical trials. Looking ahead, Biosensors said it will focus on the launch of its new DES. "While Axxion DES has contributed revenue in the quarters following its CE mark approval last year, we remain focussed on the launch of BioMatrix, which will be the key revenue driver for the company going forward," Biosensors chief executive Yoh-Chie Lu said in a statement.

Thursday, May 25, 2006

STI Outlook

SINGAPORE (XFN-ASIA) - Share prices closed sharply lower as players tracked the declines in foreign markets sparked by concerns that rapid inflation and further US rate hikes ahead could hurt the global economy, dealers said. The Straits Times Index closed 32.10 points or 1.32 pct lower at 2,404. 45, its lowest since Jan 27 when the market closed at 2,412.08. The index moved between a low of 2,376.53 and a high of 2,435.75. Losers outnumbered gainers 563 to 98, with 1,393 stocks unchanged. Volume was 1.25 bln shares valued at 1.36 bln sgd. A dealer with local brokerage firm said the next level of support is seen at 2,350 after the index briefly fell below 2,380 in afternoon trade. The dealer said the market may remain bearish tomorrow as players await US data due out tonight announcing first-quarter GDP revisions while the US core PCE deflator, a gauge of inflation, is due for release tomorrow. "Some economic data are coming out. I guess there's going to be a chain reaction (among the markets) if they fall outside market expectations," the dealer said. DBS Group Research in a report said global markets are waiting to see if the US will report a second 0.3 pct rise for the core PCE deflator, after reporting a similar increase in March. "Another 0.3 pct rise in the core PCE deflator in April looks likely," DBS said. Index heavyweight Singapore Telecommunications (SingTel) was down 0.04 sgd or 1.6 pct at 2.51 on volume of 49.033 mln shares. Among other blue chips, Singapore Airlines was down 0.30 sgd or 2.4 pct at 12.40 and Singapore Press was off 0.06 sgd at 4.08. Most banks were weaker, with DBS down 0.10 sgd at 17.40 and OCBC 0.05 sgd lower at 6.50. UOB closed flat at 15.10. Chartered Semiconductor, the world's third largest maker of customized chips, was down 0.04 sgd or 2.5 pct at 1.55, while UTAC was down 0.035 sgd at 0.805. Datacraft dropped 0.04 to 1.04 and Venture fell 0.20 to 11.60. Among property stocks, Southeast Asia's largest property developer CapitaLand was down 0.18 sgd or 4 pct at 4.32, while Keppel Land was 0.10 sgd weaker at 4.30.

Stock News: Labroy Marine won 28.8 mln usd contract!

Labroy Marine Ltd said it has won a 28.8 mln usd contract to build two 63-meter anchor-handling tug supply vessels for an unnamed repeat customer for delivery in 2008. Following the latest deal, the company's orderbook value for 2006 onwards now stands at 1.14 bln sgd, it said.

Stock News: Fraser & Neave formed joint venture with Far East Organization!

Fraser & Neave Ltd said its unit Frasers Centrepoint Ltd has formed a joint venture with Far East Organization to acquire an 809,000-square foot Waterfront View property here for 385 mln sgd, translating to 241 sgd per square foot. The site, which has a 2.5 plot ratio, is intended for residential development. F&N said that the property can be developed into 1,400-1,600 units of high rise apartments. Far East Organization is the largest private developer in Singapore.

Stock News: Swissco Int expands fleet!

Swissco International said its unit Swissco Offshore Pte Ltd has ordered two new vessels to expand its fleet and meet growing demands of its customers in the oil and gas industry. Swissco Offshore has ordered the construction of an anchor handling tug from a Chinese Shipyard in China. This vessel is scheduled for delivery in the second half of 2007. The second order was for the construction of an offshore barge, with the contract awarded to another Chinese shipyard in Nanjing. The barge is designed for heavy deck loading capability that can meet heavy load requirements in offshore work. The barge which is scheduled to be delivered this year. The purchases will be funded through combination of internal funds and bank borrowings

Stock Earnings: GP Batteries Int

Hong Kong-based GP Batteries International Ltd year to March results:
Sales - 886.31 mln sgd vs 893.86 mln
Pretax profit - 22.15 mln sgd vs 23.33 mln
Net profit - 13.58 mln sgd vs 1.26 mln
EPS - 0.1208 sgd vs 0.0115
Final div - 0.023 sgd vs 0.022
Interim div - 0.015 sgd vs 0.038

Fourth quarter to March results:
Sales - 198.77 mln sgd vs 222.70 mln
Pretax profit - 5.16 mln sgd vs 11.99 mln
Net profit - 2.81 mln sgd vs 40,000
EPS - 0.025 sgd vs 0.003

Stock News: AusGroup to acquire 76.6% in CActus Eng!

AusGroup Ltd said it will acquire a 76.6 pct stake in Cactus Engineering & Trade Pte Ltd for 15.3 mln sgd. The company said it has entered into a conditional sale and purchase agreement with Legacy Ventures Pte Ltd to acquire 100 pct of Sinergy Innovations Pte Ltd, which holds the 76.6 pct stake in Cactus Engineering. Cactus Engineering is a leading oil and gas machining and fabrication specialist in Southeast Asia, it said. AusGroup said it will issue 54.48 mln new ordinary shares at 0.2812 sgd per share, the weighted average trading price of AusGroup shares yesterday, to Legacy Ventures as payment for the acquisition.

Wednesday, May 24, 2006

Stock Earning: Pacific Andes FY net profit jumped 66.4%!

Pacific Andes International Holdings Ltd said its year to March net profit jumped 66.4 pct year-on-year to 257.38 mln hkd on the back of strong demand for fish in China. Sales for the period grew 22.9 pct to 3.55 bln hkd. "The significant growth is attributed to strong demand particularly in China, better selling prices, higher net contribution from China Fishery's strong performance and increasing operational efficiency upon integration with China Fishery's upstream activities," Pacific Andes said in a statement. The company said it recorded an exceptional gain of 81.3 mln hkd in the fourth quarter to December 2005 from the listing of its unit China Fishery on the Singapore Stock Exchange. Pacific Andes has a 31.1 pct stake in China Fishery. "China Fishery has quickly put its IPO net proceeds to earnings-accretive use in executing its expansion plans. This will in turn enhance the Group's consolidated earnings and shareholder returns going forward," Pacific Andes managing director Frank Ng said in a statement.

Stock Earnings: Singapore Shipping Corp

Singapore Shipping Corp Ltd's year to March results:
Sales - 36.86 mln sgd vs 56.17 mln
Pretax profit - 85.86 mln sgd vs 26.71 mln
Net profit - 86.42 mln sgd vs 29.53 mln
EPS - 19.8 cents vs 6.8
Final div - 3.0 cents vs 3.0
Special div - 9.0 cents vs 2.0

Fourth quarter to March results:
Sales - 8.54 mln sgd vs 13.95 mln
Pretax profit - 9.25 mln sgd vs 6.79 mln
Net profit - 7.96 mln sgd vs 7.87 mln

Tuesday, May 23, 2006

Stock Downgraded: SMY price target reduced to 0.725 by CIMB-GK!

CIMB-GK Research said it has cut its target price for Surface Mount Technology (Holdings) Ltd (SMT) to 0.725 sgd from 0. 79 sgd because of its weaker earnings outlook. "We have cut our full-year 2007-2008 forecasts by 6-9 pct to factor-in slightly higher operating expense assumptions," CIMB-GK said in a note to clients. The brokerage is keeping its "outperform" rating for SMT because of its bright business prospects, but said the company needs to monitor escalating costs. "To combat cost pressure (higher energy prices and wages), SMT will continue to re-engineer its manufacturing processes and production flow," CIMB-GK said. At 10.40 am, SMT was flat at 0.52 sgd, on volume of 154,000 shares.

Stock Upgraded: UOB price target of 17 by CIMB-GK!

CIMB-GK Research has upgraded its rating on United Overseas Bank Ltd to "outperform" from "neutral" and maintained its target price for the lender at 17.00 sgd, citing the recent weakness in the stock price. "UOB was downgraded on valuation grounds post-results. Since then, the share price has underperformed, retreating 9 pct," CIMB-GK analyst Kenneth Ng said in a note. "While our target price is unchanged, potential upside is bigger now and we upgrade UOB from neutral to outperform," he said. At 11.41 am, UOB was down 0.10 sgd or 0.66 pct at 15.00 on volume of 3.16 mln shares.

Stock Buy Call: China Essence price target of 0.955 by Philips Securities!

China Essence Group Ltd was higher on the back of a 20 pct improvement in year to March 2006 net profit, dealers said. For the term it reported net profit of 120.52 mln yuan. The stock was up 0.010 sgd or 1.75 pct at 0.580 on volume of 8.73 mln shares. Sales grew 24 pct to 385.23 mln yuan helped by higher volumes and average selling prices of both potato starch and potato starch-based products. "China Essence is optimistic of its performance in (the year to March) 2007, and expects order momentum for core products, potato starch and potato starch-based products to remain strong due to new market penetration and new distributors," it said in a statement. Phillip Securities maintained a "buy" recommendation on China Essence with fair value of 0.855 sgd. "In terms of valuation, we believe China Essence is the most attractively priced within its peer universe," Phillip analyst Eric Ong said in a note.

Stock News: OCBC to buy 12.2% of Ningbo Bank!

Oversea-Chinese Banking Corp Ltd (OCBC) has obtained regulatory approvals from both the Monetary Authority of Singapore and the China Banking Regulatory Commission to buy 12.2 pct of China's Ningbo Commercial Bank Co Ltd for 570 mln yuan, with the deal likely completed next month. OCBC will buy 250 mln new shares from Ningbo Commercial Bank at 2.28 yuan per share, making the Singapore lender Ningbo's second-largest shareholder, Ningbo said earlier. Ningbo had total assets of 42.1 bln yuan at the end of last year and was the second-largest city commercial bank in mainland China at the end of 2004, it said.

Stock Hold Call: Jishan Holdings by DMG & Partners Securities!

DMG & Partners Securities said it has resumed coverage of Jishan Holdings Ltd, a Chinese-based producer of fabric dyes, with a "hold" rating, saying the company's operating environment remains challenging after the US re-imposed quotas imports of some categories of textile products. With the lifting of restrictions on the global textile and apparel trade in January last year, Chinese exports of textiles and apparel to the US surged and textile prices fell. This surge in exports to the US and EU resulted in the US re-imposing quotas for some categories of textile products. A new agreement between the US and China came into effect on Jan 1, and will last until Dec 31, 2008. This agreement provides for a progressive increase in the annual rate of growth of exports of Chinese textile products to between 10 and 17 pct by 2008. "The situation surrounding the trade dispute seems less uncertain at this point. We re-initiate [sic] coverage with a 'hold' recommendation, as we await management's execution of its plans for strategic alliances," the brokerage said in a note to clients. Jishan has indicated that it seeking strategic alliances to grow its business. DMG said that when these alliances take off, Jishan will experience exponential growth.

Stock Earnings: Meghmani Organics net profit up 20.1%!

Meghmani Organics Ltd, an Indian company that makes specialty chemicals, may advance after reporting that its net profit for the year to last March rose 20.1 pct to 352.71 mln rupees on strong sales at its key agrochemical business. Revenue rose 16.5 pct to 3.86 bln rupees. Meghmani yesterday closed 0.015 sgd lower at 0.335.

Stock News: Pan United Marine secured 49.5 mln usd contract!

Pan-United Marine Ltd said it has secured a 49.5 mln usd contract to construct a specialized offshore support vessel with 180-metre diving support at its Batam shipyard. Delivery is scheduled for the third quarter of 2008. The latest contract brings the company's orderbook to above 470 mln sgd. "While this contract is expected to contribute positively to the company's earnings, it is not expected to have any material effect on the earnings per share and net tangible asset value per share of the group for the current financial year to December," Pan-United said in a statement. Pan-United Marine yesterday closed off 0.01 sgd at 0.69.

Monday, May 22, 2006

Stock News: Sembcorp increases stake in Cosco!

SembCorp Marine Ltd said it will buy another 110.4 mln shares in Cosco Corp (Singapore) Ltd for 120.34 mln sgd from Seletar Investments Pte Ltd, a unit of Temasek Holdings (Private) Ltd, to increase its stake to 8.17 pct. SembCorp Marine said it has signed a conditional sale and purchase agreement with Seletar for acquisition of the latter's entire shareholdings in Cosco at 1.09 sgd per share. The purchase will lift the number of Cosco shares it owns to 180.4 mln shares, from 70,000 shares or a 3.17 pct stake, it said. "The investment in Cosco Corp is in line with SembCorp Marine's strategy to grow its marine and offshore business in Singapore and China," SembCorp Marine said in a statement. The proposed acquisition still requires approval from shareholders, it said. The deal is not expected to have a significant impact on the earnings per share and net tangible assets per share of SembCorp Marine this year.

Stock News: Mapletree signed option to acquire a warehouse property!

Mapletree Logistics Trust Management Ltd said that Mapletree Logistics Trust, through trustee HSBC Institutional Trust Services (Singapore) Ltd, has signed a put and call option agreement to acquire a warehouse property within the Paya Lebar Industrial Park here for 38 mln sgd to be funded by debt. The seven-storey warehouse building, which has a gross floor area of about 23,367 square meters, is currently being upgraded and should be completed in the third quarter. Lease tenure for the land is expected to expire in 2053. It said the property will be leased back to the vendor for five years with an option to extend the lease for another five years. Targeted to be completed in the third quarter, the acquisition is expected to boost MapletreeLog's distribution per unit (DPU). "The pro forma financial effect of the acquisition on the DPU for 2005 would be an additional 0.14 Singapore cents per unit," Mapletree Logistics said.

Stock News: BH Global Marine won 2.5 mln contract!

BH Global Marine Ltd said that it has secured a 2. 5 mln sgd contract from MODEC International LLC - USA (MODEC) for the supply of cables to feed power requirement for its Petrobras PRA-1 floating storage offloading project. "This contract signifies a major milestone in the corporate history of BH Global as this represents our significant foray into the offshore oil & gas sector," BH Global managing director Vincent Lim said in a statement.

Stock News: FerroChina improve liquidity through sale of 54.6 mln shares!

FerroChina Ltd may move higher after its non-executive chairman Zhang Ye Dong sold 54.6 mln shares, equivalent to 16.35 pct stake in the company, at 0.82 sgd each to institutional investors. The sale is expected to improve liquidity for FerroChina as it gains steady following among institutional investors. "We welcome the vote of confidence in the management team and our business model from the institutional investors who have recognised the potential of the company going forward as it enters its next phase of growth, " FerroChina CEO She Chun Tai said. In a recent interview with XFN-Asia, FerroChina said it is planning to buy more Chinese steel mills to boost its capacity to as much as 2.5 mln tonnes from 700,000 tonnes currently.

Stock News: Nera Electronics discuss possible acquisition!

Nera Electronics Ltd, the electronics contract manufacturing arm of Nera Telecommunications Ltd, may advance after saying that it has been approached by an unidentified third party to discuss possible acquisition of the company. "The company has been notified of the _expression of interest by a third party in the acquisition of the company," Nera Electronics said in a statement, adding it has not resulted in any formal offer.

Friday, May 19, 2006

Stock New: Zhonghui Holding won 30 mln yuan contract!

Zhonghui Holdings Ltd said unit Shaanxi Zhonghui Environmental Conservation Co Ltd has won a 30 mln yuan turnkey contract from Lan Tian County Environmental Conservation Bureau in China. Under the contract, Zhonghui will advise, plan and install an integrated municipal solid waste treatment plant, which can treat 150 tonnes of waste a day. It expects to start working on the project this year. "This contract is expected to have a positive impact on the revenue of the group for the year," Zhonghui Holdings said in a statement.

Stock News: See Hup Seng to issue 76 mln new shares!

See Hup Seng said it has agreed to issue 12. 76 mln new shares at 0.14 sgd each to creditors as partial settlement of some 2.90 mln sgd debt owed by the company. On top of the issue of new shares worth 1.79 mln to the creditors, mainly suppliers of the company, an additional 1.11 mln sgd in cash will also be paid to settle the debts, See Hup Seng said. The new share issue is subject to shareholder and regulatory approvals.

Stock News: Datacraft proposed captial reduction!

Datacraft Asia Ltd may gain after proposing a capital reduction to facilitate future dividend payouts and write off accumulated losses worth 80.4 mln usd. Under the proposed exercise, Datacraft said it will cancel 80.4 mln usd from its issued and paid-up capital, reducing its issued paid-up capital to 139.8 mln usd from 220.2 mln currently. "The financial impact of this exercise will be minimal," Datacraft said. "There will be no change to the number of issued ordinary shares in the capital of the company as a result of the capital reduction exercise," it said. At the same time it said the move "will not have any effect on the earnings, net tangible assets and gearing of the company." The proposal is subject to shareholder and regulatory approvals.

Stock News: Keppel Corp won 415 mln contract!

Keppel Corp Ltd may advance after its unit Keppel FELS Ltd won a 415 mln sgd contract from AP Moller-Maersk to build an ultra deep water semi-submersible drilling platform. The new semi-submersible rig is expected to be delivered during the first quarter of 2010, Keppel said. Year to date, Keppel Corp said its offshore and marine engineering division has secured more than 4 bln sgd in new contracts.

Thursday, May 18, 2006

Stock News: STATS optimistic on quarter forecast!

Semiconductor testing and packaging company STATS ChipPAC Ltd repeated its second-quarter forecast of a 4-9 pct quarter-on-quarter increase in revenue. The company is looking to increase its earnings per American Depositary Share to 0.09 usd in the June quarter from 0.06 in the three months to March, also unchanged from its initial estimate. STATS ChipPAC made a net profit of 12.02 mln usd in the first quarter, reversing the year-earlier loss of 27.12 mln, as strong demand for semiconductors in the communications and consumer markets boosted sales.

Stock News: Sembawang Music Holdings in takeover offer!

Music and visual products retail chain operator Sembawang Music Holdings Ltd was sharply higher after Ruben Capital Ventures Ltd made a takeover offer for the company, dealers said. Sembawang Music soared 0.065 sgd or 43.33 pct to a high of 0.215 on volume of 1.23 mln shares. Prior to the mandatory cash offer, Ruben Capital bought 29.5 mln shares of Sembawang Music, representing 55.01 pct of the company from four shareholders for a total of 6.49 mln sgd or 0.22 sgd per share. In a disclosure to the Singapore Exchange last night, Sembawang Music said that the mandatory cash offer price is also at 0.22 sgd per share, which is a 46.7 pct premium to the stock's closing price of 0.15 sgd on May 10 before the company requested for a trading halt. Ruben Capital Ventures intends to preserve the listing status of Sembawang Music, it said.

Stock Upgraded: Singapore Land fair value raised to 6.39 by OCBC Investment Research!

OCBC Investment Research said it has raised its fair value for Singapore Land Ltd to 6.39 sgd from 5.68 sgd given the firm's improved financial standing. "In light of the completion of works at Marina Square and The Oriental, better earnings prospects, and the higher book value and accretion from its newly acquired land bank, we have revised up our fair value," OCBC analyst Winston Liew said in a note. The brokerage noted that Singapore Land is finally seeing recovery as it posted strong first quarter results with net profit up 23 pct year-on-year to 22.5 mln sgd and revenue up 17.1 pct at 51.1 mln sgd. "The investment case for SingLand remains the possibility of corporate developments (be it another takeover attempt or the unlocking of value by its parent United Industrial Corp). Presently, we do not see either in the short term," Liew said. The brokerage kept its "hold" recommendation on the stock. At 10.25 am, Singapore Land was down 0.30 sgd or 4.23 pct at 6.80 on volume of 219,000 shares.

Stock Downgraded: YHI Int downgraded to "hold" by CIMB-GK

CIMB-GK Research said it has downgraded its rating for YHI International Ltd to "hold" from "outperform" and cut its target price for the tires and alloy wheels distributor to 0.46 sgd. Lower profit assumptions for YHI's manufacturing division prompted CIMB-GK to scale back its 2006 earnings forecast for the company. "YHI's latest results show that while sales were on track, margins were lower than expected in the manufacturing division because of rising raw material costs," it said in a note. The company reported a slight fall in first quarter net profit to 5.11 mln sgd from 5.13 mln the year earlier. "With aluminium prices surging 30-40 pct in May, we believe that second quarter earnings could come in weak again. At 11.15 am, YHI was down 0.010 sgd or 2.33 pct at 0.420 on volume of 236, 000 shares.

Stock News: CapitaLand Ltd signed deal for retail maill in Beijing!

CapitaLand Ltd may be in focus after it said that CapitaRetail China Investments (B) Beta Pte Ltd has signed a sale and purchase deal to acquire Xihuan Plaza retail mall in Beijing for about 260.3 mln sgd or 1.32 bln yuan. CapitaLand said the Beijing mall will be included in the assets for its planned China retail real estate investment trust (REIT), up for listing this year. It also has Anzhen and Wangjing malls, which were acquired last year. CapitaLand gained 0.12 sgd to close at 4.64 yesterday.

Stock Buy Call: Ezra Holdings fair value of 3.4 sgd by OCBC Securities!

Ezra Holdings Ltd may advance after OCBC Securities initiated coverage of the provider of offshore support vessels with a "buy" rating and a fair value of 3.40 sgd per share. OCBC Securities said in a note to clients that it believes Ezra's core fleet of anchor handling tug supply vessels is well positioned to tap into strong growth in the offshore market. Ezra added 0.28 sgd to end at 2.52 yesterday.

Stock Downgraded:Shanghai Turbo with rating of sell by SIAS Research!

Shanghai Turbo Enterprises Ltd may fall after SIAS Research lowered its rating on the stock to "sell" after the China-based manufacturer of steam turbine generator components reported weak first-quarter results. In a client note, SIAS said it slashed its 2006 earnings per share forecast for Shanghai Turbo to 2.26 cents, which is around half of its 2005 EPS of 4.36 cents. "Signs of improvement will only be clear after the second quarter. Taking these new developments into consideration, we have lowered our target price to 0.23 sgd," SIAS said. Shanghai Turbo rose 0.005 sgd to close at 0.305 yesterday

Wednesday, May 17, 2006

Stock Buy Call: Memory Device with target price of 0.465 by Westcomb!

Westcomb Financial said it has raised its rating for Memory Devices Ltd to "buy" from "trading buy" in view of the Chinese-based company's prospects as dynamic random access memory (DRAM) prices rise and flash memory prices stabilize. Westcomb said it has a target price of 0.465 sgd for Memory Devices. "The share price has come off from the high of 0.505 sgd. We upgrade our call to 'buy', as we feel that this presents a good opportunity for investors to accumulate the stock," Westcomb said in a note to clients. "The outlook appears bright for Memory Devices. DRAM prices strengthened towards the end of 2005 and have remained strong. Flash memory prices took a beating in the first few months of this year but appear to be stabilizing." At 10.44 am, Memory Devices was up 0.015 sgd or 4.2 pct at 0.375, on volume of 503,000 shares.

Stock Hold Call: Magnecomp Int target price of 1.46 by DMG!

DMG & Partners Securities gave Magnecomp International a "hold" rating in its initial coverage of the hard disk drive (HDD) component supplier, with a target price of 1.46 sgd. In a client note, DMG said the outlook remains positive for Magnecomp as shipments of its suspension assemblies are expected to rise after the integration of Maxtor and Seagate. However, the brokerage gave it a "hold" rating on the assumption that the market may not fully appreciate the back-end loaded nature of Magnecomp's earnings model. "We believe that Magnecomp is likely to perform in line with the HDD market but will enjoy the fillip of a consumer boom for plasma and LCD televisions. Hence, it deserves a market premium over other HDD suppliers," DMG said. At 11.10 am, Magnecomp was flat at 1.19 on volume of 1.064 mln shares.

Stock Upgraded: Longcheer Holdings fair value raised to 1.65 by GK Research!

MB-GK Research said it has raised its fair value for Longcheer Holdings Ltd to 1.65 sgd per share from 1.59 sgd after the Chinese-based cellular phones designer posted strong earnings for the third quarter to March. The company reported a 70 pct year-on-year rise in net profit to 70.9 mln yuan for the quarter. Sales doubled year-on-year to 559.53 mln yuan. "Following our earnings upgrade for 2006 and 2007, our target price has been lifted by 3.7 pct to 1.65 sgd per share," CIMB-GK Research said in a client note. "With a prospective dividend yield of 6.6 pct for 2007, we believe the shares still offer excellent value and we maintain our 'outperform' rating," it said. The brokerage expects net profit for Longcheer to rise to 232.7 mln yuan this year, from 111.9 mln yuan in 2005. Net profit for 2007 is pegged at 298. 8 mln yuan and 368.5 mln yuan in 2008. At 11.18 am, Longcheer was up 0.07 sgd or 6.09 pct at 1.22 on volume of 5. 3 mln shares.

Stock Upgraded: Singtel fair value raised to 3.1 by Mrgan Stanley!

Morgan Stanley has raised its target price for Singapore Telecommunications (SingTel) to 3.10 sgd from 2.95 previously and reiterated its "overweight" rating given the firm's combination of earnings growth, balance sheet strength, and leverage to developing economies. In a client note, Morgan Stanley said it expects EPS growth of 6 pct per annum over the next three years for SingTel, together with a 5-6 pct dividend yield, and room for additional shareholder returns in the form of capital reductions. Other positive catalysts that may lift share price include further upward earnings revisions for regional affiliates; decelerating earnings reductions in Australia; and clarity on the Singapore government's national broadband policy. Morgan Stanley said further merger and acquisition activity by global carriers in search of emerging market exposure, may also boost sentiment towards SingTel. At 11.29 am, SingTel was up 0.04 sgd or 1.53 pct at 2.65 on volume of 39. 836 mln shares.

Stock Upgraded: NOL rating of neutral by Credit Suisse!

Credit Suisse said it has upgraded its rating on Neptune Orient Lines (NOL) to "neutral" from "underperform" and at the same time raised its 12-month price target to 2.20 sgd per share from 2.0 sgd previously. In a recent note to clients, Credit Suisse said the 39 pct year-on-year decline in NOL's first quarter net profit to 120 mln usd was not as bad as it had anticipated. "This is mainly due to better than expected operating cost controls," Credit Suisse. Notwithstanding the upgrade in its rating and price target, Credit Suisse said it is too early to re-accumulate NOL given that the company has given a cautious outlook. "Asia-US (container shipping) rates, which held up well in the first quarter are expected to see year-on-year declines from the second quarter onward as new contracts become effective," Credit Suisse said. "We believe, based on conversations with our industry contacts, that new Asia-US rates are in general likely to be some 8 pct lower year-on-year," it said. "Despite some recovery from their recent low point, Asia-Europe rates remain 10 pct lower year-on-year. Further, bunker prices are now higher and margins are being compressed," it added. At 11.48 am, NOL was up 0.04 sgd or 1.85 pct at 2.20 with 279,000 shares traded.

Stock News: Keppel Land launched 250 mln sgd of bond!

Keppel Land Ltd has launched for sale 250 mln sgd worth of seven-year convertible bonds, with an option to increase the size to 300 mln sgd. The bonds, which carry an interest rate of 2.50 pct per annum, can be converted into new shares of Keppel Land at 6.55 sgd per share, a 40 pct premium over yesterday's closing price of 4.68 sgd. Upon full conversion, Keppel Land will issue 38.17 mln new shares, equivalent to 5.33 pct of the company's existing issued and paid-up capital. Net proceeds from the bond issue of 245 mln sgd will refinance the property developer's existing debt and for general working capital purposes, it said. "The transaction was very well received by the market which shows the confidence investors have in the management of Keppel Land. The deal was priced at the tight end of the range despite volatile market conditions," said Keith Magnus, head of investment banking for Deutsche Bank, the issue manager.

Stock Buy Call: Huan Hsin targeet price raised to 0.7 by DBS Equity Research!

Huan Hsin Holdings Ltd may gain after DBS Equity Research raised its rating on the stock to "buy" from "hold", citing expectations of sustained earnings growth in the second quarter. DBS also increased its 12-month target price to 0.70 sgd from 0.67. CIMB-GK Research also upgraded the stock to "outperform" from "neutral" and kept its target price of 0.73 sgd. Huan Hsin retreated 0.015 sgd to close at 0.560 yesterday.

Stock Downgraded: OCBC with rating of "underperform" by Bear Stearns

OCBC may extend losses after Bear Stearns slashed its rating on the stock to "underperform" citing concerns over the bank's earnings prospects due to weak lending growth. "While we concede that OCBC's asset sales program should provide support for the group's current high share price over the next few months, we are unclear about the group's future core earnings growth," Bear Stearns said in a note. CIMB-GK Research cut its price target for the bank to 6.75 sgd from 7.20. "OCBC had provision writebacks and that served to pad up below-par results. The quality of earnings was not inspiring though," it said. OCBC slipped 0.15 sgd to finish trading at 6.65 yesterday.

Stock News: Technics Oil & Gas won 5 mln sgd contract!

Technics Oil & Gas Ltd may rise after its unit Technics Offshore Engineering Pte Ltd won a 5 mln sgd deal from J Ray McDermott Asia Pacific Pte Ltd for the engineering, procurement and construction of critical production equipment. Technics Oil & Gas fell 0.040 sgd to close at 0.690 yesterday.

Tuesday, May 16, 2006

Stock Upgraded: Elec & Eltek by Philip Securities!

Phillip Securities has raised its target price for Hong Kong-based printed circuit board maker Elec & Eltek International Co Ltd to 2.97 usd from 2.94 previously given its good margins amid strong consumer demand for electronic products such as LCD TVs. In a client note, the brokerage firm said it is keeping its "hold" rating on the company. Phillip Securities also raised its year to June 2007 revenue forecast to 539.8 mln usd from 522.7 mln previously, and its net profit estimate to 60.4 mln usd from 52.8 mln.

Stock Downgraded: Sinomem Tech rating to hold by DMG!

DMG & Partners Securities has cut its rating for Sinomem Technology Ltd to "hold" from "buy", with the Chinese-based water treatment company now trading near its target price of 0.94 sgd. However, the brokerage said it is keeping its forecast of net profit forecast for Sinomem, expecting it to meet its target net profit of 30.9 mln sgd this year, versus last year's 23.9 mln sgd. "Despite gross margin pressure experienced in the first quarter, 2006 performance should remain on track. The expanding downstream capacities, new low-cost membrane production and tax benefits should support growth in 2006," DMG said.

Stock News: Creative filed complaint against Apple for infringing patents!

Creative Technology Ltd on Monday filed a complaint with the U.S. International Trade Commission against Apple Computer Inc., charging the maker of the market-leading iPod media player of infringing on Creative's patents for some of its own music-playing devices. Creative said that it wants the ITC to investigate whether Apple violated the Singapore-based patents for the former company's Zen brand-name device, and is asking the organization to force Apple to stop "engaging in sales, marketing, importation or sale after importation into the United States" of what Creative called infringing iPod and iPod nano products.

Monday, May 15, 2006

Stock Upgraded: China Fish rating to hold by DBS Equity Research!

DBS Equity Research has changed its rating on China Fishery Group (CFG) to "hold" from "buy", saying the stock is now trading above its assumed fair value of 3.28 sgd. "We see that most of the positive expectations has already been priced into the share price and is currently trading above our target price," DBS said in a note to clients. "We believe that on current valuations CFG is slightly stretched trading at 14 times and 11 times 2006 and 2007 prospective price-earnings ratio, a slight premium to worldwide fishing peers," it said. "In the short term, we recommend to take profit on CFG and switch to (parent) Pacific Andes Holdings (which is) offering a cheaper valuation as its trading only at nine times 2007 prospective PE ratio," it said. At 9.38 am, CFG was down 0.10 sgd or 2.79 pct at 3.48 with 131,000 shares traded.

Stock Upgraded: Sarin Tech fair value raise to 1.24 by DBS Equity Research!

DBS Equity Research said it has raised its fair value for process equipment supplier Sarin Technologies to 1.24 sgd per share from 1.06 previously, as it expects sales growth for the diamond industry to accelerate further. In the first quarter to March, Sarin's net profit grew 64 pct year-on-year to 2.48 mln usd as sales rose 50 pct to 8.55 mln usd. "We expect top-line growth to accelerate through the second and third quarters, as we expect the Quazer product to contribute more significantly to revenues," DBS said. Sarin was untraded. It last traded on Thursday, finishing up 0.01 sgd at 1.08.

Stock Downgraded: NOL fair value reduced to 2.07 by Morgan Stanley!

Morgan Stanley said it has cut its 12-month fair value for Neptune Orient Lines Ltd (NOL) to 2.07 sgd per share from 2.22 previously but kept its "equal-weight" rating on the stock. "The potential share price downside of 9 pct to our target price should be mitigated by a prospective dividend yield of about 4 pct for each of the next two years," Morgan Stanley said in a note to clients. Morgan Stanley said NOL's stock price does not look attractive relative to the container shipping sector and said it has cut its EPS estimates for NOL by 5-7 pct for 2007-2008 in view of rising bunker fuel prices. NOL reported its first-quarter net profit fell 39 pct year-on-year to 120 mln usd as container shipping rates softened and bunker fuel costs soared. At 11.48 am, NOL was down 0.10 sgd or 4.37 pct at 2.18 with 1.61 mln shares traded.

Stock Earnings: OCBC

Oversea-Chinese Banking Corp (OCBC) said its net profit for the first quarter to March rose 7 pct year-on-year to 318 mln sgd, bolstered by growth in both net interest income and non-interest income. "The healthy growth in our Malaysia business, additional contribution from Great Eastern Holdings and Bank NISP [in Indonesia], and stronger non-interest income performance in Singapore have helped to offset low loan growth and margin pressure in Singapore," OCBC chief executive David Conner said in a statement. The first-quarter net profit was in line with the 314-329 mln sgd range of estimates by analysts polled by XFN-Asia. OCBC said its net interest income grew 9 pct year-on-year to 395 mln sgd in the first quarter, while non-interest income increased 11 pct year-on-year to 348 mln sgd. Its earnings also benefitted from write-back of provisions for potential loan losses, amounting to 7 mln sgd during the quarter.
Oversea-Chinese Banking Corp's (OCBC's) results for the first quarter to March:
Net interest income - 395.0 mln sgd vs 363.0 mln
Non-interest income - 348.0 mln sgd vs 312.0 mln
Pre-tax profit - 435.0 mln sgd vs 397.0 mln
Net profit - 318.0 mln sgd vs 298.0 mln
EPS - 0.412 sgd vs 0.382

Stock Earnings: C&O

China-based C&O Pharmaceutical Technology (Holdings) Ltd's third quarter to March results: Sales - 83.95 mln hkd vs 70.86 mln
Pretax profit - 33.32 mln hkd vs 29.16 mln
Net profit - 27.32 mln hkd vs 23.43 mln
EPS (basic) - 4.4 HK cents vs 4.7

Nine months to March results:
Sales - 228.27 mln hkd vs 182.76 mln
Pretax profit - 88.47 mln hkd vs 70.67 mln
Net profit - 71.77 mln hkd vs 57.10 mln
EPS (basic) - 11.6 HK cents vs 11.4

Stock Earnings: Pine Agritech!

Pine Agritech's results for the first quarter to March:
Sales - 223.68 mln yuan vs 171.68 mln
Net profit - 68.07 mln yuan vs 48.25 mln
EPS - 0.113 yuan vs 0.107 yuan

Stock Earnings: Longcheer Holdings!

Longcheer Holdings Q3 net profit 70.90 mln yuan vs 41.81 mln Longcheer Holdings Ltd third quarter to March results:
Sales - 559.53 mln yuan vs 277.15 mln
Pretax profit - 83.25 mln yuan vs 44.37 mln
Net profit - 70.90 mln yuan vs 41.81 mln
EPS - 17.87 cents vs 12.86
Quarterly div - nil

Nine month results:
Sales - 1.51 bln yuan vs 511.36 mln
Pretax profit - 195.29 mln yuan vs 88.66 mln
Net profit - 170.75 mln yuan vs 84.48 mln
EPS - 43.05 cents vs 25.99

Stock Earnings: Huan Hsin

Huan Hsin Q1 net profit 9.29 mln sgd vs 7.05 mln sgd Huan Hsin Holdings results for the first quarter to March:
Sales - 194.05 mln sgd vs 135.45 mln
Pre-tax profit - 10.25 mln sgd vs 8.57 mln
Net profit - 9.29 mln sgd vs 7.05 mln
EPS - 0.0232 sgd vs 0.0202

Stock Earnings: Fraser & Neave Ltd net profit up 11.4%!

Fraser & Neave Ltd (F&N) Ltd may rise after its second quarter to March net profit, including exceptional items, rose 11.4 pct year-on-year to 62.78 mln sgd. The company said development property sales surged 179 pct to nearly 200 mln sgd during the quarter, driven by sales of units in cities including Singapore, Kuala Lumpur, Sydney and Shanghai. Sales from new launch properties in the quarter, including the 194-unit One Leicester in Singapore and the 397-unit Pano condominium project in Bangkok, also contributed. F&N closed 0.70 sgd lower at 21.30 last Thursday. Financial markets in Singapore were closed Friday for a public holiday.

Stock Earnings: Noble Group net profit fell 58%!

Noble Group may slide after reporting that its first-quarter net profit fell 58 pct year-on-year to 35.11 mln usd on softer freight rates, which weighed on contributions from its chartering division. Noble said contributions from its aluminum division remained weak, offsetting the higher contributions of its oil and grains businesses. Noble closed 0.04 sgd lower at 1.28 on Thursday.
Hong Kong-based commodities supplier Noble Group Ltd first quarter to March results: Sales - 2.79 bln usd vs 2.54 bln
Pretax profit - 41.86 mln usd vs 94.97 mln
Net profit - 35.11 mln usd vs 84.29 mln
EPS - 1.41 US cents vs 3.41

Stock Earnings: NOL net profit fell 39%!

Neptune Orient Lines Ltd (NOL) may decline after reporting that its first-quarter net profit fell 39 pct year-on-year to 120 mln usd as container shipping rates softened and bunker fuel costs soared. NOL said it expects to see the continuing effects of high fuel costs on its earnings going forward. The outlook for freight rates also remains uncertain, and will depend largely on the extent to which demand can catch up with rising shipping capacity in the industry, it added. NOL closed 0.07 sgd lower at 2.28 Thursday.

Stock Outperform Call: ECS Holding target price of 0.48 by CIMB-GK

CIMB-GK Research has raised its rating for ECS Holdings Ltd to "outperform" from "trading buy", citing the company's positive earnings momentum. The brokerage also increased its target price for the distributor of information technology products to 0.48 sgd from 0.38. "ECS has continued to outperform industry growth, supporting our view that leading regional players will benefit from the consolidation of the IT distribution industry. We expect ECS to gain further traction in countries such as Indonesia and the Philippines this year," CIMB-GK said in a note. ECS finished Thursday's trading down 0.005 sgd at 0.355.

Stock Outperform Call: ComfortDelgro by CIMB-GK

ComfortDelgro Corp may advance after CIMB-GK Research upgraded its call on the stock to "outperform" from "neutral" on the view that the market had overreacted to rising oil prices. "Recent rises in fuel costs is a concern, but the resulting slip in ComfortDelgro's price was rather melodramatic," CIMB-GK said in a client note. ComfortDelgro closed 0.04 sgd lower at 1.48 Thursday.

Stock News: Temasek sold all CSE Global stake!

Temasek Holdings wholly-owned unit Republic Technologies Pte Ltd has sold 88.72 mln shares in CSE Global, its entire 26.7 pct stake, for 1.00 sgd each or a total 88.72 mln sgd, said DBS, which handled the sale for Temasek. The shares were sold on Thursday, primarily to institutional investors, DBS said. CSE Global, which provides engineering solutions to the oil and gas industry, closed on Thursday down 0.02 sgd at 1.03. Financial markets here were closed Friday for a holiday.

Saturday, May 13, 2006

Stock Downgraded: Starhub fair value lowered to 2.48 sgd by DBS Equity Research!

DBS Equity Research has lowered its assumed fair value for StarHub Ltd to 2.48 sgd from 2.51 after Singapore's second biggest telecommunications company posted first-quarter results that missed market estimates. While StarHub reported that it first-quarter net profit surged 102 pct year-on-year to 61.4 mln sgd, the figure was below the 63-73 mln forecast by analysts polled by XFN-Asia. DBS had projected StarHub's first quarter net profit at 65.6 mln sgd. "Despite the hiccup, we still like StarHub's underlying earnings growth prospects. Overall, StarHub remains our preferred pick among the Singapore telcos, and we continue to maintain our 'buy' recommendation," it said. At 10.07 am, the stock was flat at 2.24 sgd with 2.32 mln shares traded.

Stock Downgraded: SATS downgraded to neutral by CIMB-GK!

CIMB-GK CIMB-GK Research has trimmed its rating on Singapore Airport Terminal Services Ltd (SATS) to "neutral" from "outperform" as it believes valuations are stretched at current levels after the company posted weaker-than-expected results for the year ended March. "SATS' share price has performed well and we downgrade to 'neutral' on valuations ground. We believe some profit-taking is reasonable," CIMB-GK said in a client note. While SATS' full-year net profit rose 9 pct to 189 mln sgd, it was 7 pct below the market consensus estimate and CIMB-GK's forecast, the brokerage said. Following the dismal performance, CIMB-GK said it has cut its net profit estimate for SATS by 7 pct in the years to March 2007 and March 2008 to 202 mln sgd and 226 mln, respectively. CIMB-GK pegs fair value for the stock at 2.66 sgd. At 9.26 am, SATS was down 0.08 sgd or 3.23 pct at 2.40 with 145,000 shares traded.

Friday, May 12, 2006

Stock Buy Call: Midas with fair value of 1.11 sgd by DBS Equity Research!

DBS Equity Research has initiated coverage of Midas Holdings Ltd with a "buy" rating and a fair value of 1.11 sgd per share. "As the dominant supplier of aluminum alloy extrusion profiles to major train manufacturers in China, Midas is well positioned to ride the expected robust demand for trains in China," DBS said in a note to clients. "Furthermore, the group has recently gained a foothold into China's highly regulated train manufacturing industry, which is entering into a period of high growth," DBS said. DBS expects Midas' net profit to grow from 18.30 mln sgd last year to 28 mln this year, and further to 46.7 mln next year and to 66.0 mln in 2008. Growth will be supported by China's rail network expansion plans, in which the government intends to invest 240 bln usd over the next 10-15 years. At 9.43 am, Midas was up 0.015 sgd or 1.74 pct at 0.875 with 1.21 mln shares exchanged.

Stock News: Datacraft and OUE removed from MSCI!

Computer systems integrator Datacraft Asia and hotel operator Overseas Union Enterprises were lower after the two stocks were removed from the benchmark Morgan Stanley Capital International (MSCI) Singapore index, dealers said. In mid-morning trading, Datacraft Asia was down 0.04 usd or 3.13 pct at 1. 24, with 1.40 mln shares having changed hands. OUE was down 0.10 sgd or 1.05 pct at 9.40, with 62,000 shares traded. MSCI, which announced changes to its equity market indices for various countries overnight, added no new stocks to its Singapore index.

Stock Buy Call: Jiutian fair value of 0.85 sgd by DBS Equity Research!

DBS Equity Research said it has initiated coverage of Jiutian Chemical Group Ltd, a China-based manufacturer of fine chemicals that listed on the Singapore Exchange last month, with a "buy" rating and a fair value of 0.85 sgd per share. "Based in Henan, Jiutian Chemical manufactures DMF, methylamines, methanol and gases. Its key product, DMF, is used mainly to make polyurethane for a wide range of applications including packaging, automotive and construction," DBS said. With demand for DMF in China seen growing more than 20 pct a year in the next few years, DBS said Jiutian is tripling its production capacity. This capacity expansion should help Jiutian achieve a compounded annual growth rate (CAGR) for earnings of more than 50 pct up to 2008, it said. DBS expects Jiutian's net profit 58.7 mln yuan this year and 83.10 mln next year from 20.60 mln yuan in 2004. At 11.14 am, Jiutian was up 0.04 sgd or 5.44 pct at 0.775 with 20 mln shares traded.

Stock Upgraded: Celestial target price to 2.47!

DBS Equity Research has raised its target price for Celestial Nutrifoods to 2.47 sgd from 1.97 after the company posted upbeat quarterly results and announced plans to invest in a bio-diesel manufacturing joint venture. Yesterday, Celestial reported that its first-quarter net profit jumped 33. 5 pct year-on-year to 82.49 mln yuan, backed by growth in sales of health products. The company also said it has entered into a memorandum of understanding with Japan's Daiki Ltd to manufacture bio-diesel. Under the deal, Celestial and Daiki plan to establish a joint venture enterprise, with the former as the majority stakeholder. "Given the group's tripling of production capacity by the second quarter and bio-diesel prospects fuelling group earnings over the next few years, Celestial deserves a higher multiple of 15 times prospective 2007 price earnings (PE) ratio and a raised target price of 2.47 sgd. Its closest comparable, Pine Agritech is trading at 18 times prospective 2007 PE ratio," DBS said. At 11.40 am, Celestial was up 0.14 sgd or 8.24 pct at 1.84 with 6.73 mln shares traded.

Stock Upgraded: Longcheer Holdings fair value of 2 sgd by DBS Vickers!

DBS Vickers has increased its assumed fair value for Longcheer Holdings Ltd to 2.00 sgd from 1.20, citing attractive valuations and higher earnings forecast for the company. "At current levels, Longcheer is trading at just 10 times 2006 earnings and 6.3 times 2007 earnings," DBS Vickers said in a client note. "With an expected 30 pct dividend payout, current valuation remains very attractive against growth prospects and peers," it said. The brokerage believes Longcheer will benefit from leveraging on the 3G market in Europe and China. "We reiterate our 'buy' call with an upgraded one-year target price of 2 sgd per share," DBS said. DBS expects Longcheer's net profit for the year ending June 30 to rise to 212 mln sgd from 111.9 mln in the previous year, increasing further to 333.5 mln in the following year. Before trading was halted, Longcheer's share price rose to a 52-week high of 1.19 sgd. It last traded up 0.14 sgd or 13.46 pct at 1.18 on volume of 10. 16 mln shares.

Thursday, May 11, 2006

Stock Earnings: Eu Yan Sang International

Traditional Chinese medicines provider Eu Yan Sang International Ltd third quarter to March results:
Sales - 51.61 mln sgd vs 46.74 mln
Pretax profit - 5.56 mln sgd vs 4.76 mln
Net profit - 4.35 mln sgd vs 3.47 mln
EPS - 1.20 cents vs 0.97

Nine months to March results:
Sales - 137.31 mln sgd vs 123.47 mln
Pretax profit - 14.31 mln sgd vs 11.85 mln
Net profit - 10.91 mln sgd vs 8.74 mln
EPS - 3.02 cents vs 2.44

Stock Earnings: K1 Ventures

Investment holding firm K1 Ventures Ltd third quarter to March results:
Sales - 162.32 mln sgd vs 212.81 mln
Pretax profit - 17.06 mln sgd vs 25.17 mln
Net profit - 9.06 mln sgd vs 19.33 mln
EPS - 0.46 cents vs 1.02

Nine months to March results:
Sales - 481.47 mln sgd vs 460.25 mln
Pretax profit - 43.84 mln sgd vs 62.58 mln
Net profit - 24.31 mln sgd vs 49.27 mln
EPS - 1.23 cents vs 2.61

Stock Earnings: HTL Int

HTL International Holdings Ltd said its net profit for the first quarter to March rose 10.6 pct year-on-year to 11.83 mln sgd on the back of strong revenue from its sofa business unit. Sales rose 26.9 pct year-on-year to 158.53 mln sgd during the period. HTL said its sofa business contributed 131 mln sgd in the first quarter of this year, compared to 103.6 mln sgd in the first three months of last year. The company said its US and Canada business continued to grow strongly, while Europe, its largest market, contributed 74.7 mln sgd to revenue. "Amidst growing competition, HTL has been able to maintain its momentum to achieve double-digit growth in sales and net profit for first quarter 2006. We remain cautiously optimistic on our prospects for the rest of the year," HTL group managing director Phua Yong Tat said in a statement.

Leather sofa maker HTL International first quarter to March results:
Sales - 158.53 mln sgd vs 124.91 mln
Pretax profit - 13.67 mln sgd vs 11.86 mln
Net profit - 11.83 mln sgd vs 10.70 mln
EPS - 3.54 cents vs 3.21

Stock Earnings: HG Metal

HG Metal Manufacturing Ltd first half to March results:

Sales - 173.24 mln sgd vs 154.40 mln
Pretax profit - 5.12 mln sgd vs 13.26 mln
Net profit - 4.51 mln sgd vs 10.51 mln
EPS - 2.63 cents vs 7.34

Stock Earnings: Raffles Education Corp Q3 net profit up 136%!

Raffles Education Corp Ltd said its third quarter to March net profit jumped 136 pct year-on-year to 8.25 mln sgd, driven by higher student enrolments and course fees. Net profit for the nine months to March reached 22.24 mln sgd, up from the year-earlier 10.01 mln. Third quarter revenue rose 95 pct to 22.2 mln sgd, boosting nine-month turnover to 62.4 mln. "Our marketing efforts have resulted in increased student enrolment at our colleges. We are on track to set up more colleges in the region," Raffles Education CEO Chew Hua Seng said in a company statement. "We will also continue to strengthen and expand our extensive marketing network to attract more students around the world to our colleges and to continue the development of our proprietary courseware." Given the strong results, Raffles Education declared a quarterly dividend of 1.25 cents per share.

Raffles Education Corp Ltd third quarter to March results:
Sales - 22.18 mln sgd vs 11.38 mln
Pretax profit - 8.97 mln sgd vs 4.25 mln
Net profit - 8.25 mln sgd vs 3.50 mln
EPS - 1.61 cents vs 0.69
Interim div - 1.25 cents vs 0.5

Nine months to March results:
Sales - 62.42 mln sgd vs 33.52 mln
Pretax profit - 25.94 mln sgd vs 11.77 mln
Net profit - 22.24 mln sgd vs 10.01 mln

Stock Earnings: Capitaland Q1 net profit jumped 86.5 %!

CapitaLand said its first quarter net profit jumped 86.50 pct year-on-year to 130.60 mln sgd, bolstered by exceptional gains. CapitaLand booked a gain of 58.30 mln sgd during the quarter, primarily from the sale of its stake in Shanghai Xin Mao Property Development Co. The company said operating sales slipped 10.50 pct year-on-year to 658.65 mln sgd in the first quarter due to lower contributions from China and Australia. Overseas contributions accounted for 52 pct of the group's sales in the first quarter. "The lower revenue from China was due to the slowdown in residential property sales," CapitaLand said. "The deconsolidation of assets divested in 2005, such as Pidemco Tower in Shanghai and Four Seasons Hotel in London also contributed to the (sales) decline," it said. Notwithstanding the softening contributions from China, which had been a major growth driver for the group, company officials remain upbeat. "The group performed well in the first quarter and continues to see strong long-term growth trends in Asia, underpinned by concurrent high growth in China, India and a recovering Japan," CapitaLand chairman Richard Hu said in a statement. CapitaLand group CEO Liew Mun Leong said the group is on track to launch property funds in China and other Asian countries. "We announced that we would take a significan stake in a Hong Kong-listed property company to scale up our presence in China. We are also on track to launch new property funds in China and other Asian countries," Liew said.

Stock Earnings: Parkway Holdings

Parkway Holdings Ltd first quarter to March results:

Sales - 220.20 mln sgd vs 103.61 mln
Pretax profit - 27.46 mln sgd vs 18.12 mln
Net profit - 15.42 mln sgd vs 13.54 mln
EPS - 2.11 cents vs 1.86
Interim div - 1.5 cents, unchanged

Stock Earnings: Celestial

Celestial Nutrifoods Ltd first quarter to March results:

Sales - 231.29 mln yuan vs 172.05 mln
Pretax profit - 82.49 mln yuan vs 61.86 mln
Net profit - 82.49 mln yuan vs 61.78 mln
EPS - 0.13 yuan vs 0.13

Stock Earnings: Cerebos

Cerebos Q2 to March net profit 14.16 mln sgd vs restated 13.69 mln Cerebos Pacific Ltd second quarter to March results:

Sales - 152.66 mln sgd vs 150.87 mln
Pretax profit - 21.89 mln sgd vs 21.12 mln
Net profit - 14.16 mln sgd vs 13.69 mln EPS - 4.51 cents vs 4.36
First half to March results:

Sales - 334.36 mln sgd vs 329.20 mln
Pretax profit - 58.83 mln sgd vs 58.88 mln
Net profit - 39.80 mln sgd vs 36.89 mln
EPS - 12.66 cents vs 11.75

Stock Earnings: China Sun

China Sun Bio-Chem Q1 net profit 67.01 mln yuan vs 61.98 mln China Sun Bio-Chem Technology Group Co Ltd's first quarter to March results:

Sales - 279.49 mln yuan vs 192.51 mln
Pretax profit - 86.30 mln yuan vs 69.87 mln
Net profit - 67.01 mln yuan vs 61.98 mln
EPS - 0.0819 yuan vs nil

Stock Earnings: Reyoung

Reyoung Q1 net profit 20.77 mln yuan vs 17.64 mln Reyoung Pharmaceutical Holdings Ltd's first quarter to March results:

Sales - 168.05 mln sgd vs 137.46 mln
Pretax profit - 24.57 mln yuan vs 17.64 mln
Net profit - 20.77 mln yuan vs 17.64 mln
EPS - 0.0623 yuan vs 0.0678

Stock Earnings: Bio-Treat

Bio-Treat Q3 net profit 89.05 mln yuan vs 77.07 mln yuan Chinese-based water treatment specialist Bio-Treat Technology's results for the third quarter to March:

Sales - 375.50 mln yuan vs 284.58 mln
Pre-tax profit - 101.02 mln yuan vs 88.86 mln
Net profit - 89.05 mln yuan vs 77.07 mln
EPS - 0.10 yuan vs 0.09

Results for the nine months to March:
Sales - 1.01 bln yuan vs 767.74 mln
Pre-tax profit - 295.89 mln yuan vs 237.18 mln
Net profit - 255.49 mln yuan vs 205.91 mln

Stock Earnings: Beauty China

Beauty China Q1 net profit 27.16 mln hkd vs 22.42 mln Cosmetics and skin-care products company Beauty China Holdings Ltd's first quarter to March results:
Sales - 87.17 mln hkd vs 66.16 mln
Net profit - 27.16 mln hkd vs 22.42 mln
EPS - 0.077 hkd vs 0.065

Stock Earnings: Starhub Q1 net profit doubled!

StarHub Ltd, Singapore's second biggest phone firm, may gain after its first-quarter net profit surged 102 pct year-on-year to 61.4 mln sgd, after its cable TV, mobile, and broadband operations all registered double-digit growth in sales. But the quarterly profit was below market expectations. Three analysts surveyed by XFN-Asia had expected net profit in a range of 63-73 mln sgd, against 30.4 mln a year earlier. Operating revenue for the period rose 14 pct to 426.8 mln sgd. The company declared a quarterly dividend of 2.5 cents. StarHub declined 0.02 sgd to close at 2.24 yesterday.

Stock News: Hyflux won 2 water treament contracts in China!

Hyflux Ltd said its unit Hyflux Utility has won two more water treatment projects in China. Hyflux Utility is a wholly-owned subsidiary of SinoSpring Utility Ltd, which is 50 pct owned by Hyflux. "These new contracts attest to the confidence of the respective local governments in Hyflux's capabilities and track record as a leader in water treatment," Hyflux group CEO and president Olivia Lum said. For the first project, Hyflux Utility has been granted a 30-year concession by the local government of Dafeng City in Jiangsu province to supply industrial water to the south development zone of Dafeng City. Under the concession agreement, Hyflux will design, construct, supply, finance, operate and maintain a 20,000 cubic meter per day water clarification plant. Scheduled for commercial operation by end-2007, the project is estimated to cost 55 mln yuan. On the second project, Hyflux Utility has been granted a 30-year concession to treat wastewater and to recycle the treated water for industrial use for Liaoyang City in Liaoning province. Under the concession agreement, Hyflux Utility will design, construct, supply, finance, operate and maintain a plant capable of treating 30,000 cubic meters per day of wastewater and of producing 25,000 cubic meters per day of recycled water for industrial use. Scheduled for completion by the first half of 2008, the estimated total project cost is 50 mln yuan.

Stock News: Midas Holding to sell 76.5 mln shares at 0.82 via placement!

Midas Holdings Ltd, manufacturer of aluminium alloy extrusion products and polyethylene pipes in China, may be in focus after it said that it will sell 76.50 mln new shares at 0.82 sgd each via a placement to be handled by Morgan Stanley. Net proceeds of 61.50 mln sgd will be used to fund the 30 mln investment needed to set up a joint venture company, Nanjing Puzhen Rail Transport Co Ltd. The rest of the proceeds will be used to buy new manufacturing equipment and finance the company's working capital requirements, it said. Midas closed off 0.045 sgd at 0.860 yesterday.

Stock News: K1 investment result in 100% return!

k1 Ventures has received regulatory approval to sell its 99.9% stake in GASCO to Macquarie Infrastructure Company for US$238m. The sale price will result in US$120m disposal gain and represents a 100% return on invested capital of US$119m. Company said the deal is expected to close by 30 Jun 2006

Wednesday, May 10, 2006

Star Stock: Datacraft breakout today!

Immediate Resistance: 1.3
Immediate Support: 1.24

Datacraft breakout from major resistance at 1.22 today. With Wave 1 from 1.08 to 1.2 and Wave 2 retreated to 1.14, the target price of wave 3 should be around 1.33! After that, it may retreat to 1.26 for wave 4 before the final rally of Wave 5!

Stock Upgraded: Singtel fair value at 2.91 by UBS!

UBS Investment Research said it has raised its fair value for Singapore Telecommunications (SingTel) to 2.91 sgd per share from 2.82 sgd after the company announced sterling results for the year to last March and a 4.0 bln sgd pay-out to shareholders. "Post the announcement of its strong year-to-March-2006 results and an attractive 4.0 bln sgd pay-out to shareholders, SingTel's current share price weakness is unwarranted," UBS said in a note to clients. "We believe the stock should trade closer to our revised price target of 2.91 sgd," it said. However, UBS said it is keeping its "neutral 1" rating for SingTel, given expectations that margins of unit Optus will remain under pressure. UBS expects SingTel's net profit to ease to 2.77 bln sgd in the year to next March from 4.16 bln sgd the year before, but to increase to 3.03 bln sgd in the year to March 2008 and to 3.25 bln sgd in the year to March 2009. At 10.11 am, SingTel was flat at 2.69 sgd, with 18.07 mln shares traded.

Stock Upgraded: Global Test fair value to 0.48 by DBS Equity Research!

DBS Equity Research has raised its fair value for Taiwan-based chip testing firm Global Testing to 0.48 sgd from 0.42 after the company reported robust first-quarter earnings. On Monday, Global Testing said net profit for the March quarter rose to 5. 03 mln usd from 40,000 usd a year ago due to strong demand for its chip testing services. DBS said its revised fair value for the stock is at 1.80 times price to book value, which is still at a discount to its peers' 2.10 times. At 9.30 am, Global Testing was unchanged at 0.37 sgd with 3.85 mln shares traded.

Stock Buy Call: China Sun ratget price of 1.1 by Westcomb!

Westcomb gave China Sun Bio-Chem Technology Group a "buy" rating and target price of 1.10 in its initial coverage of the cornstarch producer. In a client note, the brokerage cited China Sun's potential to secure a license to produce ethanol fuel as a strong catalyst. "The Shenyang ethanol plant will be a profit booster as the group expects the plant to be completed in 2006. However, the key difficulty now lies on when the government will grant approval for the fuel ethanol licence," Westcomb said. To mitigate this risk, China Sun has planned for the production of both non-fuel ethanol and fuel-ethanol products. In addition, capacity expansion for the corn starch and modified corn starch product was successfully concluded in 2005. As such, the full benefit of the expanded capacity can be reaped in 2006. At 10.44 am, China Sun was up 0.03 sgd or 3.3 pct at 0.945 on volume of 11.521 mln shares.

Stock Upgraded: China Hongxing fair value raised to 1.7 sgd by CIMB-GK!

CIMB-GK Research has upgraded its assumed fair value for China Hongxing Sports Ltd to 1.70 sgd from 1.65, saying it expects the shoemaker's full-year earnings to be on track with its estimates despite slower first-quarter performance. On Monday, China Hongxing reported that net profit for the March quarter rose to 30.08 mln yuan from 26.92 mln a year ago. "The less-than-inspiring 12 pct year-on-year growth in first quarter net profit was blamed mainly on a jump in tax rate to 21 pct from 12 pct a year ago, as tax concession enjoyed by a subsidiary expired at end-2005. Also, there was a small contraction in gross profit margin to 32 pct due to increased outsourcing of shoe manufacturing in the face of Hongxing's capacity constrain," CIMB-GK told clients in a note. But with the company doubling its shoe-making capacity by the third quarter, and tripling capacity by the second quarter of 2007, margins should gradually improve as outsourcing is reduced, it said. The tax rate should also ease going forward as another subsidiary of the company has been granted a tax holiday, it added. CIMB-GK said it expects China Hongxing's full-year net profit to rise to 181.80 mln yuan from 127.50 mln last year, and further to 308 mln yuan next year and to 423 mln in 2008. At 11.01 am, China Hongxing was up 0.07 sgd or 4.27 pct at 1.71 with 1.28 mln shares changing hands.

Stock Upgraded: Inter-Roller fari value raised to 2.68 sgd by CIMB GK!

CIMB-GK Research said it has raised its fair value for Inter-Roller Engineering to 2.68 sgd per share from 2.0 sgd after the supplier of baggage handling systems reported robust results for the first quarter. Yesterday, Inter-Roller reported that its first-quarter net profit more than doubled to 4.66 mln sgd from 2.32 mln sgd a year earlier. CIMB-GK said it expects Inter-Roller's net profit to rise to 25.4 mln sgd this year from 16.9 mln last year, to 29.4 mln sgd next year and to 32.10 mln sgd in 2008. The growth should be underpinned by Inter-Roller's thick order book, which was worth 189 mln sgd at the end of March, it said. The value of the order book should grow further as Inter-Roller continues to pursue airport projects in Asia and the Middle East. "Recent developments are positive, including the privatization of Indian airports, which will speed up spending in airport upgrades, given robust air traffic growth in India. Prospects in China are abundant, which is targeting to raise the number of airports from 135 to 240 by 2010," CIMB-GK said. "Middle East countries such as Abu Dhabi and Qatar are investing in new airports, while Dubai plans to spend 33 bln usd to build the world's largest airport by 2012," it said. At 12.11 pm, Inter-Roller was down 0.04 sgd or 1.75 pct at 2.24, with 739, 000 shares traded.

Stock Earnings: Singapore Airlines weaker than expected annual earnings!

Singapore Airlines Ltd may edge lower after reporting weaker-than-expected earnings for the year to last March. SIA said its full-year net profit fell to 1.24 bln sgd from a restated figure of 1.35 bln a year earlier due to higher fuel expenses and foreign exchange losses. The figure was below the projected range of 1.26-1.35 bln sgd by analysts polled by XFN-Asia. An analyst with a local brokerage said he is keeping his "hold" rating on SIA with a fair value of 15 sgd as he does not see any share price catalyst at this stage. "It (share price) is not going to go up much more unless they make a decision on the divestments," the analysts said, referring to SIA's potential sale of stakes in SIA Engineering and Singapore Airport Terminal Services. Any such divestment, however, is unlikely to happen anytime soon with SIA still undecided on the matter. "The board has considered it comprehensively and thoroughly but there is no consensus either way," SIA chief executive officer Chew Choon Seng said, adding that SIA does not need funds in the near to medium term.

Stock Earnings: Datacraft Asia Q2 net profit 10.3 mln USD!

Datacraft Asia Ltd's second quarter to March results:

Sales - 116.88 mln usd vs 109.02 mln
Pretax profit - 12.58 mln usd vs 4.0 mln
Net profit - 10.30 mln usd vs 2.14 mln
EPS - 2.19 US cents vs 0.45
First half to March results:
Sales - 237.70 mln usd vs 212.52 mln
Pretax profit - 18.71 mln usd vs 7.80 mln
Net profit - 14.53 mln usd vs 4.25 mln
EPS - 3.09 US cents vs 0.91

Stock Earnings: Inter-Roller Engg beats expectation on Q1 result!

Inter-Roller Engineering Ltd may extend gains after posting better-than-expected results for the first quarter. The company said its net profit for the three months to March more than doubled to 4.66 mln sgd from 2.32 mln a year earlier, exceeding the 3.5-4.0 mln forecast by DBS Equity Research. Following the strong results, the company proposed a one-tier tax-exempt interim dividend of 0.015 sgd per share as well as a one-for-two stock split.

Stock Earnings: CSE Global Q1 net profit up 81%!

CSE Global Ltd may advance after its first-quarter net profit rose 81 pct year-on-year to 6.01 mln sgd, supported by its strong order book. The company said prospects remain upbeat and it expects better results in the second quarter and for the full year, due to outstanding orders that stood at 182.60 mln sgd as of end-March.

Stock Earnings Preview: Starhub 1st result!

StarHub will release its first-quarter results today. Analysts surveyed by XFN-Asia forecast first-quarter net profit in a range of 63-73 mln sgd, against 30.4 mln the year before. StarHub is also expected to announce a hefty payout to shareholders via a capital management exercise. Citigroup, which forecasts StarHub's net profit at 69 mln sgd, estimates that 560-850 mln will be returned to shareholders, equivalent to 0.26-0.40 sgd per share.

Tuesday, May 09, 2006

Stock downgraded: STX Pan Ocean target price of 0.67 sgd by CIMB-GK

CIMB-GK Research said it has cut its target price for STX Pan Ocean Co Ltd to 0.67 sgd from 0.74 sgd given lowered expectations for the company's 2006 results. STX Pan Ocean cited a decline in freight rates and higher prices for bunker fuel as major reasons for a 69 pct decline in its first quarter net profit to 25.95 mln usd. Consequently CIMB-GK said it has revised down its 2006 profit estimate for STX Pan Ocean by 5 pct on the assumption of lower freight rates. CIMB-GK said that the company's first quarter profit was 8 pct lower than its estimate and much lower than market consensus. "We believe it will be some time before STX can turn around its charter-in rates to match rate declines on the sales side. With continued opacity in its operations, STX's risk profile remains high, especially in an environment of softening rates," the brokerage said. CIMB-GK maintained its "outperform" call on STX Pan Ocean. At 11.09 am, STX Pan Ocean was down 0.015 sgd or 2.16 pct at 0.680 on volume of 2.21 mln shares.

Stock Upgraded: MMI with target price of 1.11 sgd by DBS Equity Research!

DBS Equity Research said it has raised its target price for MMI Holdings to 1.11 sgd from 0.82 sgd given expectations of much bigger earnings this financial year by the supplier of components for hard-disk drives (HDDs). DBS has raised its estimate of net profit for MMI for the year to June by 54 pct to 44.1 mln usd. DBS said this is because MMI's net profit for the nine months to last March, at 37.37 mln usd, was almost equal to its previous estimate for the full year, it said. "We are confident that MMI is one of the better HDD plays, and is able to ride the growth wave that the HDD segment is currently experiencing," DBS analyst Dinesh Chandiramani said in a note. He added that the stock deserves to trade at a premium, given its strong forward return on equity of 31 pct. At 2.02 pm, MMI was up 0.040 sgd or 5.84 pct at 0.725, on volume of 12.90 mln shares.

Stock Upgraded: Rotary price target raised to $0.745 by OCBC Research!

Rotary announced yesterday that it has secured an engineering, procurementand construction (EPC) project for Phase 7 petroleum storage and relatedfacilities on the Jurong Island. Oiltanking Singapore Ltd is the repeatcustomer, who has a working relationship with Rotary for the past 15 years.This latest contract win from Rotary will add S$41.0m to its order book,and we estimate that Rotary's current net order book is S$611.3m. Thislatest contract win has reinforced our belief that the huge UniversalTerminal contract secured in January will not crowd out its bread-andbutter small-mid size EPC contracts, as Rotary has the resources to handlethe record order books on hand. This contract win is expected to becompleted by end 2006, and we now expect net profit to rise fourfold YoY to S$33.5m in FY06 (vs. S$31.2m previously). We have raised our fair valueestimate for Rotary to S$0.745 (vs. S$0.73 previously), based on a similar2.2x P/B ratio, and 9x FY06 PER. We remain positive on Rotary's businessopportunities, which include the booming demand for petroleum storage inChina and Singapore and increasing works for offshore structures. MaintainBUY on Rotary.

Stock Buy Call: Fibrechem with a target price of $1.47 by Kim Eng!

Fibrechem is optimistic of achieving its RCPS full year minimum target ofHK$280 million net profit for FY06. We believe this is conservative andmaintain our view that Fibrechem will be able to achieve our earningsforecast of HK$368.7m net profit for the full year, an 87% yoy improvement.With Fibrechem's planned capacity ramp, we are forecasting 3 year EPS CAGRof 38% versus FY06E PE of 5.6x. We are maintaining our price target to S$1.47 per share, based on 9x PER; Buy maintained.

Stock Earnings: Global Testing Corp Q1 net profit of 5.03 mln usd!

Global Testing Corp Ltd may gain after reporting that its net profit rose to 5.03 mln usd from 40,000 usd a year ago on the back of strong demand for its chip testing services in the consumer and communications segments of the electronics industry. Global Testing president and CEO Paul Yang said revenues for the first quarter were down 0.2 pct from the previous quarter to 17.40 mln usd, smaller than the company's expectations for a 4-8 pct decline. "Our results for the first quarter have provided us with added confidence in our ability to deliver a strong performance this year.... We expect full year revenue growth of approximately 40 pct for 2006," Yang said. The company expects second quarter revenues to rise 5-10 pct compared to the first quarter, he added.

Stock Earnings: MMI Holdings reported 86% increase in Q3 net profit!

MMI Holdings Ltd may advance after reporting that its third quarter to March net profit soared 86 pct year-on-year to 11.90 mln usd on the back of strong HDD demand in the consumer electronics and PC industries. "The group will continue to increase its capacity in the next few quarters to meet the growing customer demand," MMI managing director Teh Bong Lim said. MMI said it expects to post another set of record revenue and profits in the current financial year to June, for the third consecutive year.

Stock Earnings: Jaya Holding reported 48% increase in q3 net profit!

Jaya Holdings Ltd may gain after reporting that its third quarter to March net profit rose 48 pct year-on-year to 29.39 mln sgd on the back of strong demand for anchor handling and tug supply vessel in the oil and gas industry. "We believe the demand for the kind of offshore support vessels which we are building for sale and also our own chartering operations will remain firm, " Jaya group managing director YM Pang said. "Currently, we have over 30 vessels under construction which will be completed over the next 24 months. These new buildings should provide the group with a steady stream of future earnings," he added.