Wednesday, December 11, 2013

DBS Vickers Report 12 Dec 13

Possible exit offer for China XLX
China XLX Fertiliser has been approached by controlling
shareholder Pioneer Top Holdings over a possible exit offer
for the shares that it does not yet own. The offer, if made, is
not intended to take the company private as China XLX
shares will continue to be listed in Hong Kong. China XLX
said the possible exit offer would be at a cash consideration
of 40 cents per share, and is in connection with a possible
voluntary delisting from Singapore Exchange. The
consideration price is at a 23% premium to China XLX's last
traded price of 32.5 cents. Pioneer Top Holdings and its
concert parties now hold a 64.9% interest in the company.
China XLX also has yuan-denominated convertible bonds
worth about RMB324m (S$67m), which can be converted to
176m shares at a price of RMB1.84 per share.
Swiber Holdings is disposing its 33.3% stake in PJW 3000, a
vessel owning company that owns a construction barge, for
approximately US$52m. This transaction is part of the Group
strategy to restructure certain existing vessels under various
leasing arrangement. The unaudited gain on disposal was
approximately US$16.6m.
Vallianz Holdings has received shareholders’ approval for the
grant of options to Swiber and the issuance of capital
securities to Rawabi. Shareholders have also endorsed its
diversification into the area of sourcing and supplying of
vessels and equipment and additional shipping-related
services to the offshore oil and gas industry. The total
proceeds of US$57.2m which could be raised from the issue
of the option shares, as and when the options are exercised
by Swiber, and the proceeds from the issue of capital
securities to Rawabi, is intended to be used for capital
expenditure relating to future fleet expansion and general
working capital purposes.
SPH announced that its wholly owned subsidiary is the leadinvestor
in a Series B US$10m round of funding in Magzter
Inc (Magzter), a global digital magazine store and newsstand.
The other co-investor is Kalaari Capital (Kalaari), a venture
capital fund investing in global technology-oriented
companies.
US Indices Last Close Pts Chg % Chg
Dow Jones 􀀙 15,843.5 (129.6) (0.8)
S&P 􀀙 1,782.2 (20.4) (1.1)
NASDAQ 􀀙 4,003.8 (56.7) (1.4)
Regional Indices
ST Index 􀀙 3,060.7 (21.0) (0.7)
ST Small Cap 􀀙 525.0 (4.4) (0.8)
Hang Seng 􀀙 23,338.2 (405.9) (1.7)
HSCEI 􀀙 11,073.9 (308.2) (2.7)
HSCCI 􀀙 4,609.5 (51.5) (1.1)
KLCI 􀀙 1,842.8 (1.0) (0.1)
SET 􀀘 1,369.4 1.9 0.1
JCI 􀀙 4,271.7 (3.9) (0.1)
PCOMP 􀀘 5,888.7 2.3 0.0
KOSPI 􀀙 1,978.0 (15.5) (0.8)
TWSE 􀀙 8,433.8 (9.6) (0.1)
Nikkei 􀀙 15,515.1 (96.3) (0.6)
STI Index Performance
Singapore
Total Market cap (US$bn) 570
Total Daily Vol (m shrs) 1,802
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$)
11 Dec
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.615 0.82
ComfortDelgro Buy 1.930 2.19
OCBC Buy 9.830 12.40
Singapore Airlines Buy 10.050 11.40
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
11 Dec
Target Price
($)
Ezion Holdings Buy 2.200 3.30
China Merchants Buy 0.905 1.20
CSE Global Buy 1.005 1.11
Nam Cheong Buy 0.285 0.42
Source: Bloomberg Finance L.P., DBS Vickers
Singapore
Wired Daily
Page 2
Following positive feedback and strong enquiries from the
market, Keppel Corp is proceeding with the building of its
new CAN DO drillship. When completed in 2016, the drillship
is expected to be a state-of-the-art deepwater exploration,
development and completion drilling vessel.
The International Air Transport Association (Iata) said that next
year could be one of the strongest yet for aviation this
century. A bottom line of US$16.4 billion - second only to the
2010 record of US$19.2 billion - is expected as a result of
improving business conditions and easing oil prices. Regional
airlines is expected to chalk up a profit of US$3.6 billion next
year, 16% higher year on year, fuelled by a recovering cargo
market and growth in the Chinese domestic market. Brent oil
prices are expected to slide to US$105 per barrel from an
anticipated US$109 per barrel this year, but yields for the
passenger market will shrink 0.5% y-o-y, and the cargo
market, by 2.1% - even as both post traffic growth. This year,
Iata expects the industry's net profit to hit US$11.7 billion. This
is less than an earlier estimate of US$12.7 billion, but is still
nearly 60% more than the US$7.4 billion made last year.
The outlook for the Asian consumer electronics industry is
negative in 2014, said Moody's. Operating profit margin will
remain below 3% for most rated companies due to a lack of
product differentiation and high penetration rates in key
products like LCD televisions, as well as the convergence of
smartphones and mobile devices, driving intense competition.
It also revealed stronger demand in emerging countries for
mid to low-tier products, which carry lower average selling
prices; and significant cash outlays required to defend market
positions and remain competitive.
According to a MAS survey, optimism is on the rise here.
Professional forecasters now expect the Republic's economy to
expand by 3.8% in 2013 - up from the 2.9% median forecast
seen in September's survey. This puts growth just above the
mid-point of the government's projection of 3.5-4%, which
was raised last month from an earlier forecast of 2.5-3.5%.
Singapore deal-making is expected to pick up in 2014. The
past year was mixed for deal-making in Singapore, with equity
fund-raising picking up while mergers and acquisitions (M&A)
slowed down. But industry professionals see a tailwind
blowing into 2014 as global economies head towards modest
growth, although macro uncertainties like US Federal Reserve
"tapering" cast shadows over the horizon.
US stocks tumbled as investors bet that a new U.S. budget
deal raises chances the Federal Reserve might start to scale
back its support for the economy soon. Congressional
negotiators reached a deal that would prevent another
government shutdown, if approved by the House and Senate.
The deal would set spending levels, reduce the deficit and
relieve some of the arbitrary, forced spending cuts. Bank
stocks were under pressure after federal regulators officially
approved new restrictions to curb high-risk trades by banks

No comments:

Post a Comment