OCBC Report 28 May 14

KEY IDEA KSH Holdings: Proposes final dividend of 1.75 S-cents KSH Holdings reported 4QFY14 PATMI of S$11.0m, down 28% YoY mostly due to weaker contributions from the property development segment. Full year FY14 PATMI cumulated to S$44.5m, which increased 18% and constituted 92% of our full year forecast. While FY14 earnings reflected decent growth, it is slightly below our expectations due to slower-than-anticipated progressive recognition at development projects over the fourth quarter. In terms of the topline, FY14 revenues increased 40.1% to S$324.5m as we saw stronger contributions from the construction segment (up 38.6%), the development segment (up 62.9%) and rental income from investment properties (up 13.5%) as well. The group also proposed a final dividend of 1.75 S-cents. Maintain BUY. After updating our model for latest assumptions, our fair value estimate slips to S$0.71 from S$0.73 previously. (Eli Lee) MORE REPORTS Goodpack Ltd: KKR offers at S$2.50/share Following news reports last week that global PE firm KKR is interested to acquire Goodpack, the former has now made an offer of S$2.50/share to the latter’s shareholders, valuing the company at about S$1.4b. This represents a 23.2% premium to Goodpack’s closing price on 18 Mar 2014, a day before the announcement by Goodpack of a possible transaction. This also represents a 6.8% premium to Friday’s closing price of S$2.34. IBC Capital, a company held by a fund affiliated with KKR, has received irrevocable undertakings from Goodpack's executive chairman David Lam who owns a 32% stake in Goodpack. We have a BUY rating on the counter with a fair value estimate of S$2.61, which is just 4.4% higher than KKR’s offer price.  As such, we recommend shareholders to accept the offer. (Yap Kim Leng) Yoma Strategic Holdings: Announces shareholding structure in telco JV This morning, Yoma reported its shareholdings in Digicel Asian Holdings (“the Digicel JV”), which is involved in telecommunications infrastructure projects in Myanmar. Under the announced structure, YSH Finance (80% owned by Yoma and 20% owned by FMI group) will hold 25% of the Digicel JV. The JV plans to roll out telecommunications towers across Myanmar as the country aims to rapidly increase mobile phone penetration after the award of two telco licenses last year. We note that the JV has already clinched a contract to provide telecommunication towers to Ooredoo (which won one of the telco licenses) and also intends to offer similar services to other telco operators in Myanmar. Maintain BUY on Yoma with an unchanged fair value estimate of S$0.87. (Eli Lee)

For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES - The S&P 500 Index reached its all-time high, up 0.6% to close at 1911.91. - The U.S. S&P/Case Shiller composite index pointed to a rise in home prices by 12.4% YoY in Mar 2014, beating the street’s 11.8% expectations. - According to the Department of Statistics, Singapore’s services sector recorded a 4.9% YoY growth in sales for 1Q14. - PACC Offshore Services Holdings reported a 76% YoY jump in its 1Q14 PATMI to US$36.7m despite a 6% decline in revenue to US$52.9m. - Bukit Sembawang Estates’ 4QFY14 revenue surged 94.5% YoY to S$89.5m but PATMI slumped 29.1% to S$18.2m. - EuroSports Global Limited’s 153.3% spike in its FY14 PATMI to S$17.0m was boosted by a S$16.3m gain on disposal of PPE.