DBSVickers 25 Jun 14

Today’s Focus
 CWT - Raising the roof; maintain BUY with higher target
price of S$2.08. Valuation remain attractive at less than 8x
FY15 PE
The Logistics and Financial Services segments for CWT are
tracking above expectations, with firm momentum. We expect
better margins at Logistics segment, while Financial Services
should grow its profit firmly as revenue continues to scale up.
FY14/FY15 forecasts raised by 10.3%/10.6% to
S$119m/S$135m. Maintain BUY, with raised target price of
S$2.08, as we roll over to FY14/15 numbers; valuation remain
attractive at less than 8x FY15 PE.
Keppel Corp has signed a conditional contract with Golar LNG,
to perform the world’s first-of-its-type conversion of an existing
Moss LNG carrier into a Floating Liquefaction Vessel (FLNGV).
Longcheer Holdings has entered into a conditional sale and
purchase agreement with First Prosperous International in
relation to the disposal of its entire interest in its wholly-owned
subsidiary, Mobell Technology for an aggregate cash
consideration of RMB240m. The proposed disposal is
conditional upon the company distributing RMB450m from (i)
its total distributable profits and retained earnings; and (ii) the
net proceeds from the proposed disposal to its shareholders, by
way of a cash dividend.
Informatics Education has signed a set of agreements
comprising a Memorandum of Understanding, an Institutional
Agreement and a Memorandum of Cooperation with the
University of South Wales (USW), UK to offer undergraduate
and postgraduate degrees in Business Studies/Administration
and also in Logistics and Supply Chain Management.
Informatics is responsible for providing support to students in
areas such as student accommodation, student counselling and
careers advice.
OEL (Holdings) has entered into a Heads of Agreement with
Unionmet to dispose its entire stake in Biofuel Research for
S$3m. Biofuel is in the business of processing acid oils and
greasy waste using different technologies including thermal
separation techniques and such related businesses.
XMH Holdings has secured five new contracts worth a total of
S$10.6m from the start of April 2014 till date, marking a
positive start to the financial year. The five contracts, catering
to three different and major industries will provide the MPG
Group with a flow of activities through to January 2016.
US Indices Last Close Pts Chg % Chg
Dow Jones  16,818.1 (119.1) (0.7)
S&P  1,950.0 (12.6) (0.6)
NASDAQ  4,350.4 (18.3) (0.4)
Regional Indices
ST Index  3,262.0 4.6 0.1
ST Small Cap  559.1 1.4 0.2
Hang Seng  22,880.6 75.8 0.3
HSCEI  10,250.2 52.1 0.5
HSCCI  4,277.6 13.5 0.3
KLCI  1,892.3 8.4 0.4
SET  1,460.9 (7.8) (0.5)
JCI  4,862.2 20.1 0.4
PCOMP  6,793.1 31.1 0.5
KOSPI  1,994.4 19.4 1.0
TWSE  9,246.2 17.9 0.2
Nikkei  15,376.2 7.0 0.0

STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 612
Total Daily Vol (m shrs) 1,702
12m ST Index High 3,305
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large Cap
Rec’n Price (S$)
24 Jun
Target Price
(S$)
Global Logistic Properties Buy 2.660 3.42
Mapletree Greater China
Commercial Trust
Buy 0.865 1.02
Thai Beverage Public Buy 0.620 0.68
Stock Picks – Small Cap
Rec’n Price (S$)
24 Jun
Target Price
(S$)
Vard Holdings Buy 1.100 1.34
Nam Cheong Buy 0.400 0.47
Centurion Corporation Buy 0.705 0.86
Source: DBS Bank
Yeo Kee Yan (65) 6682 3706 keeyan@dbs.com / Ling Lee Keng (65) 6682 3703 leekeng@dbs.com
www.dbsvickers.com
Refer to important disclosures at the end of this report
Singapore
Wired Daily
Page 2
LionGold Corp's bid to raise $5m from a proposed share
subscription was off as the remaining four would-be
subscribers backed out of the deal. But the Group
unveiled another subscription agreement with a Malaysian
businessman to raise gross proceeds of $4.23m. Under
the new proposed share subscription deal, Malaysian
businessman Moi Hsien Hur has agreed to buy 52m new
LionGold shares at 8.135 cents each, about 9% discount
to the last volume-weighted average price. LionGold said
that of the estimated net proceeds of $4.2m from this
subscription, 70% will go to its gold mining operations,
while the remaining 30% will be used as working capital.
In property news, another Gambas Crescent industrial
parcel has been launched for sale - the fourth in the area
to be offered in the span of a year. The 30-year lease,
15,665 sq m site, located right next to the latest sold
Parcel 3, was released by the Urban Redevelopment
Authority (URA) yesterday. It has a maximum gross plot
ratio of 2.5 and is zoned for Business-1 development, or
light industrial use. The three earlier adjacent sites were all
bought by Far East Organization in 2013,
Meanwhile, Roxy-Pacific Holdings has had a slow start to
its Trilive condo project in the Kovan area, moving close to
30 units since sales began last Friday. It has released 80
units in the 222-unit freehold project along Tampines
Road at an average price of $1,550 per square foot (after
early-bird discounts).
US markets fell post record levels last week as reports of
escalating violence in the Middle East overshadowed
housing data that boosted optimism in the world’s biggest
economy. Data had showed purchases of new homes in
the U.S. rose in May by the most in 22 years. June
consumer confidence came in better than expected at
85.2 (consensus 83.5, previous 82.2). Federal Reserve
Bank of Philadelphia President said he’s “fairly optimistic”
economic growth will exceed 2.4% for the remainder of
this year and next amid steady growth in jobs. But the
optimism unwound following a report that Syrian
warplanes struck targets in western Iraq unnerved
investors.