Tuesday, November 26, 2013

DBS Vickers Report 27 Nov 13

IHH Healthcare - Current valuation reflects positive
prospects, maintain HOLD, TP: S$1.53
3Q13 operating results for IHH Healthcare in line. Admissions
and average patient revenue showed growth. We cut our
FY13F net profit forecasts by c.23% to reflect unrealized FX
losses on USD loans. We also adjusted FY14F earnings down
by c.7% with the weaker Turkish Lira, offset by a stronger
SGD. Our TP is raised marginally to S$1.53 (RM3.94) as we
roll valuations over to FY14F, from blended FY13F/14F
previously. While long term prospects remain positive for
healthcare players, we believe this has largely been priced in.
Maintain HOLD.
United Envirotech (UENV) has entered into a second
supplemental agreement with regards to the proposed
acquisition of the business, assets and principal subsidiaries of
Memstar by UENV. Among the changes are :- 1) Extend the
existing agreement to 28 April 2014 from 28 Jan 2014; 2)
KKR has undertaken, upon completion of the merger, to
immediately convert US$51.1m or 44.9% of the US$113.8m
convertible bonds into approximately 137m shares at the
conversion price of S$0.45; 3) Memstar to distribute special
dividend; 4) Purchase consideration shall be satisfied via cash
and new UENV shares.
PGEO Group, a wholly-owned subsidiary of Wilmar, has
acquired a 100% interest in Vopak Terminals Pasir Gudang
from Vopak Pasir Gudang Malaysia BV for a purchase price of
MYR45mil. The principal activity of Vopak Terminals Pasir
Gudang is the provision of tank facilities for storage,
unloading, loading and drumming of bulk liquid chemicals.
Global Logistic Properties has signed a lease agreement for
13,000 sqm with Geodis Group, one of the world’s largest
supply chain solutions providers, at GLP Park Suzhou, Eastern
China.
Vallianz Holdings has been awarded US$150m worth of
chartering contracts by a leading company in the Middle East.
Platform Supply Vessels (PSVs) will be chartered out from 1Q
2014 for 5 years, including option of extension. These
contracts boost the current outstanding orderbook by 45%
to US$485m.
US Indices Last Close Pts Chg % Chg
Dow Jones  16,072.8 0.3 0.0
S&P  1,802.8 0.3 0.0
NASDAQ  4,017.7 23.2 0.6
Regional Indices
ST Index  3,173.5 (7.1) (0.2)
ST Small Cap  536.1 5.1 1.0
Hang Seng  23,681.3 (3.2) (0.0)
HSCEI  11,302.0 (85.2) (0.7)
HSCCI  4,612.4 7.0 0.2
KLCI  1,798.1 0.2 0.0
SET  1,358.7 5.8 0.4
JCI  4,235.3 (99.5) (2.3)
PCOMP  6,025.4 21.1 0.4
KOSPI  2,022.6 6.7 0.3
TWSE  8,248.0 60.5 0.7
Nikkei  15,515.2 (103.9) (0.7)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013
100-Day MA
Index
STI
Total Market cap (US$bn) 583
Total Daily Vol (m shrs) 1,936
12m ST Index High 3,454
12m ST Index Low 3,004
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
26 Nov
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.68 0.82
ComfortDelgro Buy 1.99 2.19
OCBC Buy 10.47 12.40
Singapore Airlines Buy 10.41 11.40
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
26 Nov
Target Price
($)
Ezion Holdings Buy 2.05 2.65
China Merchants Buy 0.91 1.20
CSE Global Buy 1.015 1.11
Frasers Centrepoint Trust Buy 1.81 2.14
Yoma Strategic Holdings Buy 0.74 1.02
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Mermaid Maritime has recently been awarded additional
US$30m diving and cable lay projects in Middle East. This
latest suite of contract awards include new build DP2
construction barge chartered-in to support additional work
requirements.
Chip Eng Seng has entered into three contracts of sale to
purchase a former nursery and orchard site in Australia. The
purchase price of the property is A$19.3m. The property has a
site area of 28,002 square metres which the Group intends to
develop it into a residential project consisting of around 90
town houses and 50 apartments.
Novo Group expects to record an increase of loss for the six
months ended 31 October 2013 as compared to that for
2012. The loss is mainly attributable to the cost increased
significantly due to the commencement of operations of the
Group’s tinplate manufacturing plant in Jiangsu and tinplate
processing plant in Tianjin.
Singapore’s manufacturing output rose 8% in October but still
short of market expectations, dragged down by a 2.3%
contraction in the biomedical manufacturing cluster. Excluding
the volatile biomedical sector - which shrank on a 6.9% drop
in pharmaceuticals output - industrial production would have
grown an even stronger 10.4% y-o-y. The electronics sector
continued to build on September's robust showing, rising
from 20% y-o-y growth that month to 22.8% in October. This
was largely a result of most segments expanding amid
improved demand.
U.S. stocks pared gains in the final minutes of trading to
reflect changes in MSCI indices that offset a rally among
homebuilders and technology shares. Homebuilders rose after
the S&P/Case-Shiller index of property values indicated home
prices in 20 U.S. cities rose 13.29% y-o-y, better than
consensus estimates of 13%. October building permits
registered 1.034mil, better than consensus expectations for
930k

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