Pan United - Port visit provides confidence that
earnings are sustainable. Maintain BUY, TP: S$1.21
Our analyst visited Pan United’s port, Xinghua Port in
Changshu (CXP), in China recently and gained further
insights to the Port’s operations. He now believes that
CXP is capable of contributing sustainable earnings to Pan
U going forward. CXP now contributes more significantly
(27% vs 18% previously) to Pan U’s earnings. Maintain
BUY with S$1.21 TP.
2Q14 results for Ascendas REIT in line. New acquisitions,
developments to underpin a steady growth profile in
coming quarters. Maintain BUY, TP revised to S$2.37 (Prev
S$ 2.27). We continue to like A-REIT for its stability and
attractive yields of c6.1-6.2%.
Keppel Land’s 3Q13 results in line, boosted by
development and recurrent income contributions. More
launches are in the pipeline in China and Singapore. With
a current gearing 0.44x, the group has deep balance
sheet capacity of S$1.1bn debt headroom assuming a
gearing of 0.6x. Maintain BUY, TP S$4.35.
SIA reported its September operating stats that showed a
mild 1.8% y-o-y growth in passenger carriage to
8,058.8m p-km on 2.6% increase in capacity, resulting in
a slight drop in load factor 0f 0.7ppt to 79.9%. Silkair
registered a 3.5% increase in carriage to 407m p-km but
load factor declined 4ppt to 64.9% on 10% growth in
capacity. Meanwhile, SIA Cargo's carriage fell 6.7% yoy
to 536.3m tonne-km with load factor falling 1.1ppt to
63%. Overall, a fairly uninspiring set of numbers as the
overall macro-environment remains soft. Our BUY call for
SIA is predicated on its undemanding valuation of just
0.9x P/B, with 40% of its market cap in net cash. TP of
S$11.50 is based on 1x P/B.
Midas had secured contracts to supply aluminium alloy
extrusion profiles and fabricated parts to two major train
projects in Europe worth 17.7m Euros, as well as profiles
and fabricated parts to major PRC metro projects worth
RMB75.9m. The European contracts are expected to be
delivered between 2013 to 2017, whilst the PRC metro
US Indices Last Close Pts Chg % Chg
Dow Jones 15,373.8 205.8 1.4
S&P 1,721.5 23.5 1.4
NASDAQ 3,839.4 45.4 1.2
Regional Indices
ST Index 3,174.0 8.8 0.3
ST Small Cap 533.4 (1.5) (0.3)
Hang Seng 23,228.3 (108.2) (0.5)
HSCEI 10,629.8 (41.4) (0.4)
HSCCI 4,546.1 (30.7) (0.7)
KLCI 1,791.4 6.6 0.4
SET 1,464.4 (8.5) (0.6)
JCI 4,492.3 (27.7) (0.6)
PCOMP 6,483.6 40.9 0.6
KOSPI 2,034.6 (6.4) (0.3)
TWSE 8,332.2 (35.7) (0.4)
Nikkei 14,467.1 25.6 0.2
STI
Total Market cap (US$bn) 583
Total Daily Vol (m shrs) 2,699
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
16 Oct
Target Price
($)
ST Engineering Buy 4.200 4.80
ComfortDelgro Buy 1.900 2.19
OCBC Bank Buy 10.350 12.40
Singapore Airlines Buy 10.280 11.40
Stock Picks – Small /Mid Cap
Rec’n Price ($)
16 Oct
Target Price
($)
Ezion Holdings Buy 2.190 3.10
Goodpack Buy 1.735 2.00
CSE Global Buy 0.895 1.07
Mapletree Commercial Trust Buy 1.205 1.35
Frasers Centrepoint Trust Buy 1.855 2.14
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
contracts, which include projects in Shenzhen Metro Line 4,
Ningtian Intercity Line 1, and Nanjing Metro Line 4 amongst
others, will be for delivery between 2013 to 2016. This is
positive news for the Group as it will grow its order book to
c. RMB800m, which should underpin its earnings recovery
next year. However, given the delayed re-starting of high
speed railway projects in China, Midas' earnings recovery will
likely be pushed back further out into next year. Still, we
maintain our BUY call as the stock is trading at just 0.9x P/B,
with a turnaround story next year as China re-embarks on its
high speed railway development plans. TP S$0.60 is based on
1.2x P/B.
CNA Group has won over S$8.5m in new projects in Asia.
The new project wins include: integrated building
management system for Tanjong Pagar Centre, upgrading
SCADA systems at Jurong Water Reclamation Plant –
inclusive of a 5-year maintenance; and second airport project
win in Laos.
AusGroup has signed a Multi-Discipline Services Agreement
(MDSA) with Woodside Energy as operator of the North West
Shelf Project for maintenance work at the Domestic Gas
Plant. The MDSA will provide AusGroup with the opportunity
to participate in a rolling program of general and campaign
maintenance activity potentially over the next 5 years.
Developers' private home sales surged 65% to 1,246 units in
September from 756 units in August - though the figure was
slightly less than half the 2,621 units transacted in the
primary market in September last year. The figures exclude
executive condominium (EC) units. Based on preliminary
figures, developers have sold 2,484 private homes in the third
quarter - the weakest showing since Q4 2009, when 1,860
units were sold. This shows the total debt servicing ratio
(TDSR) framework introduced in late June has bitten the
private housing sector deeper than previous cooling
measures. September's top-selling project was CapitaLand's
Sky Vue condo, with 433 units sold at a median price of
$1,401 psf.
US stocks surged as the market reacted positively to news
that Senate lawmakers have reached a deal that would end a
16-day government shutdown and raise the debt ceiling
ahead of the deadline and avoid a possible United States
debt default. On the economic front, the Fed said in its latest
snapshot of economic conditions, known as the Beige Book,
that growth continues at a modest pace
No comments:
Post a Comment