Today’s Focus
Midas - Significant RMB318m high speed railway contract
win. Maintain BUY, target price S$ 0.64.
Midas announced a significant high speed railway order win
worth RMB318m, from CNR Tangshan for the delivery of high
speed train car body components, for trains travelling up to a
speed of 350km/h. For delivery between 2014, the clinching of
this order should help the Group's earnings rebound
significantly this year. YTD, the Group has announced wins of
c. RMB390m, which is in line with our expectations. Just as
importantly, this represents the second high speed railway
order win since 4Q13 last year, and should signify a return of
high speed railway projects and contracts for Midas. Excluding
the revenue delivered in the first quarter of this year, the
Group's order books would be around RMB1.3bn, with more
to come from both metro and overseas contracts. Maintain
BUY, target price S$ 0.64.
Pacific Radiance has entered into a joint venture agreement
with Westsea Marine to set up a JV company. The Westsea
Marine's group of companies have operations in Perth,
Western Australia and are providers of maritime services, vessel
owners and operators of a modern diversified fleet of offshore
support vessels fleet. The JV Company intends to be engaged
in the business of ship ownership and other offshore marine
related services, in the offshore support vessel segment. Upon
incorporation, the JV Company intends to acquire two
deepwater platform supply vessels to position itself to access
the offshore oil and gas industry in Australia.
Sembcorp Industries has signed a joint venture agreement to
build, own and operate a new industrial wastewater treatment
plant in the Jingmen Chemical Industrial Park (JCIP). Sembcorp
will own a 95% stake in the JV. At a total investment of
RMB98.7m, the facility will have an initial capacity of 10,000
cubic metres per day with capabilities to treat multiple streams
of industrial wastewater. Expected to be completed in the first
half of 2016, the facility will provide industrial wastewater
treatment services to companies in the JCIP under a 30-year
exclusive concession agreement. With this expansion to Hubei
province, Sembcorp’s utilities business now extends across 11
provincial regions in China.
US Indices Last Close Pts Chg % Chg
Dow Jones 16,245.9 (166.8) (1.0)
S&P 1,845.0 (20.1) (1.1)
NASDAQ 4,079.8 (48.0) (1.2)
Regional Indices
ST Index 3,193.6 (19.1) (0.6)
ST Small Cap 542.8 (3.4) (0.6)
Hang Seng 22,377.2 (132.9) (0.6)
HSCEI 10,156.9 46.9 0.5
HSCCI 4,232.9 35.0 0.8
KLCI 1,862.9 6.3 0.3
SET 1,392.0 0.8 0.1
JCI 4,921.0 63.1 1.3
PCOMP 6,614.4 53.2 0.8
KOSPI 1,983.7 (6.0) (0.3)
TWSE 8,876.4 (12.1) (0.1)
Nikkei 14,808.9 (254.9) (1.7)
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 595
Total Daily Vol (m shrs) 1,847
12m ST Index High 3,454
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
7 Apr
Target Price
(S$)
ComfortDelgro Buy 2.03 2.19
Global Logistic Properties Buy 2.62 3.31
Keppel Corp Buy 10.92 12.60
Stock Picks – Small Cap
Rec’n Price (S$)
7 Apr
Target Price
(S$)
Ezion Holdings Buy 2.11 3.26
Goodpack Buy 2.29 2.60
China Merchants Buy 0.96 1.32
Pacific Radiance Ltd Buy 1.09 1.20
Nam Cheong Buy 0.35 0.46
Centurion Corporation Buy 0.72 0.86
Singapore
Wired Daily
Page 2
Global Logistic Properties has signed a new build-to-suit
(BTS) agreement with Trinet Logistics, a major third-party
logistics (3PL) provider in Japan. Trinet is expanding its
operations in Western Japan and will use GLP Kobe-Nishi as
its main distribution center in Greater Osaka.
CCM Group proposed to issue up to 28.75 bn shares via an
eight-for-one rights issue and another 28.75 bn bonus
shares on the basis of one bonus share for every rights share
subscribed. The Rights Issue Price of S$0.005 represents a
discount of approximately 54.5% to last closing price. The
proceeds will be used for general working capital, to
discharge costs of its Singapore construction projects, repay
and redeem liabilities and pursue property development
opportunities overseas, particularly the United States and
Australia. CCM reported a net loss of S$22.4m for FY13.
Sino Construction proposes to issue 5% unsecured
redeemable convertible bonds due in 2017 in the principal
amount of S$16m, which can be converted into issued
ordinary shares in the capital of the Company at S$0.16 per
Conversion Share. The proceeds is intended to be used to
fund the Group’s business expansion and for general
working capital purposes.
Resale prices of Housing and Development Board (HDB) flats
crawled slightly higher last month as price increases in
smaller units offset the declines in larger ones, according to
the latest data from the Singapore Real Estate Exchange
(SRX). But transaction volumes staged a strong rebound as
buyers returned to the resale market after the Chinese New
Year lull. Flash estimates by SRX showed HDB resale prices
edged up 0.3% in March from a month ago. Overall HDB
resale prices slipped 4.9% y-o-y in March. The total number
of resale transactions, however, jumped 40% from
February's 951 units to 1,319 in March - the highest
monthly volume observed since October.
U.S. stocks fell, with the S&P500 Index erasing the year’s
gains as technology shares extended last week’s sell-off.
Bellwether names Pfizer Inc. and American Express Co. led
the decline among the Dow component stocks. An index of
homebuilder stocks was also weak. In corporate news,
Procter & Gamble declared a 7% dividend Increase,
boosting quarterly dividend to US64.36cts/share
US60.15ct/share. The LEAP-1A engines, made by GE
Aviation, Snecma JV will power 40 of Lufthansa’s A320neo
planes ordered in 2013
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