Wednesday, October 9, 2013

DBSVickers Report 10 Oct 13

Semb Marine – Secured upgrading contract of
passenger ship Diamond Princess
SembCorp Marine’s wholly owned subsidiary Sembawang
Shipyard has secured the upgrading of the passenger ship
Diamond Princess from the Princess Cruise, one of the
leading brands within Carnival Corporation, a global
cruise company and one of the largest vacation
companies in the world. The Diamond Princess is
scheduled to enter Sembawang Shipyard on 12 March
2014. Princess Cruises will also become a long-term
customer of SMM under the Favoured Customer Contract
which Carnival Corporation has with Sembawang
Shipyard for its future dockings in Singapore. This should
contribute positively to SMM's repair segment. The value
of the contract is not disclosed. In any case, we do not
take into account ship repair and upgrading projects in
our order win assumption. No change to HOLD call and
TP: S$4.70.
ST Engineering announced that its electronics arm, ST
Electronics has secured about S$416m worth of contracts
for rail electronics, satellite communications (satcoms) and
communications projects in the third quarter of 2013.
These contracts are not expected to have any material
impact on ST Engineering for the current financial year.
Cordlife Group has introduced an advanced non-invasive
metabolic screening service known as MetaScreen in
India. MetaScreen allows detection of as many as 110
metabolic disorders from urine samples. MetaScreen
allows Cordlife to further capitalise on the fast-rising India
middle class, whose population is expected to grow 67%
to 267 million by 2015.
Global Logistic Properties plans to increase space at new
projects by 20% to 25% annually in the next two years as
e-commerce grows and retail chains expand in China. It is
beginning construction of 2.5 million square metres of
warehouse space in China this year, compared with two
million sq m a year earlier. The company has a portfolio of
about eight million sq m in China.
US Indices Last Close Pts Chg % Chg
Dow Jones 􀀘 14,803.0 26.4 0.2
S&P 􀀘 1,656.4 1.0 0.1
NASDAQ 􀀙 3,677.8 (17.1) (0.5)
Regional Indices
ST Index 􀀘 3,154.8 8.3 0.3
ST Small Cap 􀀙 533.1 (0.0) (0.0)
Hang Seng 􀀙 23,034.0 (144.9) (0.6)
HSCEI 􀀙 10,505.5 (29.4) (0.3)
HSCCI 􀀙 4,531.7 (13.5) (0.3)
KLCI 􀀙 1,769.1 (8.4) (0.5)
SET 􀀘 1,434.7 0.6 0.0
JCI 􀀘 4,457.4 24.9 0.6
PCOMP 􀀙 6,377.8 (77.1) (1.2)
KOSPI 􀀘 2,002.8 8.3 0.4
TWSE 􀀙 8,344.7 (30.9) (0.4)
Nikkei 􀀘 14,037.8 143.2 1.0
Dow Jones 􀀘 14,803.0 26.4 0.2
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 581
Total Daily Vol (m shrs) 3,674
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
9 Oct
Target Price
($)
ST Engineering Buy 4.130 4.80
ComfortDelgro Buy 1.920 2.19
OCBC Bank Buy 10.200 12.40
Singapore Airlines Buy 10.150 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
9 Oct
Target Price
($)
Ezion Holdings Buy 2.230 3.10
Goodpack Buy 1.725 2.00
CSE Global Buy 0.890 1.07
Mapletree Commercial Trust Buy 1.195 1.35
CDL Hospitality Trust Buy 1.640 1.80
Frasers Centrepoint Trust Buy 1.835 2.14
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
CNA Group bags S$18m EPC project for Thailand property
development at Sriracha. This is the first contract in Sriracha
Development after the MOU was announced on 1 July 2013.
This project will increase the group’s orderbook of S$63.6m
as at 30 June 2013 to S$92.2m, inclusive of the Vietnam
Airport win announced on 2 September 2013.
Sino Construction expects to report a loss for 9M2013,
mainly due to: 1) Declining financial performance arising
from deteriorating business environment mainly due to
intense business competition in the construction industry; 2)
Impairment for long outstanding debts and 3) Repair and
maintenance expense.
Singapore’s IPO market raises US$1.7b proceeds in Q3. This is
up 39% from Q2 and the second highest globally after the
United States, despite QE fear. In the coming months, SGX
has a healthy IPO pipeline; but much of it depends on the
market conditions being supportive, according to Simon Lim,
Singapore Exchange's head of listings for South-east Asia.
The US$2-billion cruise tourism market in Asia is poised to
see an unprecedented 14% growth annually to 3.8 million
passengers by 2020, with almost half of that market coming
from China, according to an industry report. The report
estimated that in 2012 alone, the 12 primary Asian source
markets delivered 1.3 million passengers. At present there are
21 international cruise lines serving Asia in 2013, operating a
collective 43 ships, either year-round or seasonally

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