Sunday, October 6, 2013

DBSVickers Report 7 Oct 13

Venture Corp - On track for better 2H13 but growth
pushed to FY14. Maintain BUY rating and S$8.40 TP.
6.5% yield provides good support.
The STI went below the 3150 level last week. We believe
further downside should be limited at c.3100 and see
bargain hunting opportunities there or slightly above on
the presumption that the US does not sink into debt
default.
The 3Q results season starts this week with SPH leading
the blue chips releases. SPH should interest investors
looking for dividend payout; our analyst expects
final/special DPS of 16 Scts.
Generally, we are expecting a lacklustre Q3 results season.
However there are still potential bright spots. Nam
Cheong could deliver positive earnings surprise as the
pace of vessel sales has been ahead of expectations YTD.
Indofood Agri is a potential earnings recovery play. But
we are cautious on Hi-P.
New products and new customers for Venture Corp are
spurring growth in 2H13. The higher run-rate also bodes
well for margins; we expect net margins to improve to
5.6% in 2H vs 5.2% in 1H. However, while 3Q net profits
seem to be on track (DBSV estimate: S$39m), macro
uncertainties and customer consolidations could crop
upside in 4Q. Hence, we maintain our 2H earnings
estimate of S$79.3m (+37% h-o-h), resulting in a flat
FY13. Venture is on track for a better 2H but growth is
pushed to FY14. No change to BUY rating and S$8.40 TP.
6.5% yield provides good support.
Keppel Offshore & Marine has strengthened its foothold
in the offshore and marine industry in Mexico with the
signing of an MOU (Memorandum of Understanding) with
national oil company, Petroleos Mexicanos (PEMEX). The
MOU is to jointly develop, own and operate a yard facility
in Mexico, the first phase of which is to support the
construction of six KFELS B class jackup drilling rigs.
US Indices Last Close Pts Chg % Chg
Dow Jones 􀀘 15,072.6 76.1 0.5
S&P 􀀘 1,690.5 11.8 0.7
NASDAQ 􀀘 3,807.8 33.4 0.9
Regional Indices
ST Index 􀀙 3,138.1 (6.7) (0.2)
ST Small Cap 􀀙 545.5 (23.4) (4.1)
Hang Seng 􀀙 23,138.5 (75.9) (0.3)
HSCEI 􀀘 10,517.3 2.7 0.0
HSCCI 􀀘 4,499.6 19.7 0.4
KLCI 􀀘 1,776.6 5.2 0.3
SET 􀀙 1,427.7 (1.5) (0.1)
JCI 􀀙 4,389.3 (29.3) (0.7)
PCOMP 􀀘 6,390.5 2.8 0.0
KOSPI 􀀙 1,997.0 (2.5) (0.1)
TWSE 􀀘 8,364.6 5.5 0.1
Nikkei 􀀙 14,024.3 (132.9) (0.9)

STI
Total Market cap (US$bn) 586
Total Daily Vol (m shrs) 3,413
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price ($)
4 Oct
Target Price
($)
ST Engineering Buy 4.150 4.80
ComfortDelgro Buy 1.915 2.19
OCBC Bank Buy 10.190 12.40
Singapore Airlines Buy 10.320 11.40
Frasers Centrepoint Trust Buy 1.840 2.07
Stock Picks – Small /Mid Cap
Rec’n Price ($)
4 Oct
Target Price
($)
Ezion Holdings Buy 2.250 3.10
Goodpack Buy 1.710 2.00
CSE Global Buy 0.895 1.07
Mapletree Commercial Trust Buy 1.200 1.35
CDL Hospitality Trust Buy 1.620 1.80
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Wee Hur Holdings has abandoned the Thomson View
collective sale and is requesting for the full refund of the
deposit and stamp duty paid.
KS Energy announced its move into Mexico with the signing
of a Memorandum of Agreement (MOA) with one of
Mexico’s renowned conglomerate Empresas ICA (ICA). A
jointly controlled entity (JCE) will be formed to tap into
Mexico’s expanding oil and gas industry by providing drilling
services and heavy capital equipment for the offshore oil and
gas exploration market.
Singapore Exchange barred short selling and margin trading
of three stocks that were suspended after sharp plunges last
Friday, declaring them "designated securities" subject to
stricter rules and added scrutiny. Trading in shares of
Blumont Group, Asiasons Capital and LionGold Corp was
halted Friday after their prices tumbled more than 40% early
in the day, wiping out a combined S$4.8bn in market value
and months of big share-price gains.

No comments:

Post a Comment