STI –
3270 failure points to risk of further decline to next
immediate support at 3220
QT Vascular
- An emerging balloon catheter producer
STI has fallen below the important
near-term support of 3270.
Technically, unless the STI is
able to recover above 3283 soon,
last week’s fall ups the risk
of a further decline to the next
immediate support at 3220.
The price of Brent crude rose
to USD115pbl last week, the
highest in 11 months as the fighting
in Northern Iraq
continued. Iraq’s oil production
as a percentage of the world’s
total is 3.6% and out of this,
about ¾ is in the south that has
been spared of the current unrests.
While the current unrests
are unlikely will not have a significant
impact on global oil
production, the concern is that
the situation deteriorates, civil
war breaks out within the country
and Middle East unity is
undermined. Over the weekend,
gunmen seized more territory
along Iraq’s borders with Jordan
and Syria. ISIL militants and
Sunni supporters now control territory
in Iraq from Mosul in the
north to Rutba in the west.
Beyond Iraq’s country specific
supply risk, on the demand side,
our chief economist believes that
rising incomes means Asia’s
energy demand over the long term
can only continue to soar.
China’s current per-capita energy
consumption is only 1/8th of
US while that for India’s is
just 1/12th.
These developments
should underpin O&G stocks.
For Singapore, our analyst’s
picks for the offshore O&G services
space are Ezion, POSH, Vard, Pacific
Radiance and Nam
Cheong
China June preliminary HSBC Manufacturing
PMI will be
released this morning. Consensus
expects a reading of 49.7,
still in contraction territory
but with a tat improvement over the
prior month’s 49.4. Singapore’s
May CPI will be released this
afternoon. Consensus expects 2.6%
y-o-y increase.
We issue a NON-RATED Equity Explorer
report on QT Vascular
(QTVC), an emerging balloon catheter
producer. Its flagship
product is the Chocolate PTA,
a percutaneous transluminal
angioplasty (PTA) Balloon approved
for the treatment of
Peripheral Artery Diseases (PAD).
Its products are distributed
US Indices Last Close Pts Chg
% Chg
Dow Jones
16,947.1 25.6 0.2
S&P
1,962.9 3.4 0.2
NASDAQ
4,368.0 8.7 0.2
Regional Indices
ST Index
3,258.8 (10.2) (0.3)
ST Small Cap
559.6 0.3 0.1
Hang Seng
23,194.1 26.3 0.1
HSCEI
10,395.5 41.4 0.4
HSCCI
4,326.8 (5.1) (0.1)
KLCI
1,885.7 4.2 0.2
SET
1,467.3 5.4 0.4
JCI
4,847.7 (16.6) (0.3)
PCOMP
6,731.0 31.6 0.5
KOSPI
1,968.1 (24.0) (1.2)
TWSE
9,273.8 (43.0) (0.5)
Nikkei
15,349.4 (11.7) (0.1)
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$bn) 612
Total Daily Vol (m shrs) 2,151
12m ST Index High 3,305
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large
Cap
Rec’n Price (S$)
20 Jun
Target Price
(S$)
Global Logistic Properties Buy
2.680 3.42
Mapletree Greater China
Commercial Trust
Buy 0.870 1.02
Thai Beverage Public Buy 0.620
0.68
Stock Picks – Small
Cap
Rec’n Price (S$)
20 Jun
Target Price
(S$)
Vard Holdings Buy 1.130 1.34
Nam Cheong Buy 0.385 0.47
Centurion Corporation Buy 0.725
0.86
Source: DBS Bank
Singapore
Wired Daily
Page 3
through Japan’s Century Medial,
China’s Weihai Weigao
and Johnson & Johnson. Market
penetration and
adoption of its balloon catheters
will drive growth going
forward. QTVC is awaiting approvals
for some of its
products in Japan and China. If
approved for sale, these
products could positively impact
its future earnings and
stock price. Factors that may
cause the company’s
earnings to underperform include
competition from stents
and other balloons, failure to
attain product approvals,
poor take-up rates from commercialisation
of products,
adverse clinical trial data on
QTVC’s products, and loss of
distributorship.
Repi Soap and Detergent (Repi)
and Wilmar International
have signed a joint investment
agreement for the
upgrading of an existing manufacturing
facility in Ethiopia
that will house an edible oil
refinery and packing plant,
production plants for specialty
fats, soft oils, soaps and
detergents, as well as a facility
for sesame seed
processing. Repi and Wilmar will
each have a 50%
participation in the joint investment.
Innopac Holdings is proposing
a renounceable nonunderwritten
rights issue of up to 6,930.4m
new shares at
an issue price of S$0.01 for each
rights share and up to
3,465.2m free detachable warrants
on the basis of two (2)
rights shares and one (1) free
detachable warrant for every
one (1) issued share. Each warrant
carries the right to
subscribe for one (1) new share
at an exercise price of
S$0.012 for each warrant share.
The rights issue price of
S$0.01 represents a discount of
approximately 45% to the
last closing price. The net proceeds
of approximately
S$68.9m will be used to fund the
expansion and growth
of existing businesses, acquisitions
and new investments;
and for general working capital
purposes.
Sunningdale Tech is issuing 153.0m
new shares at an
issue price of S$0.1633 per subscription
share,
representing gross proceeds of
approximately S$25m. The
investors are Yarwood Engineering
& Trading and Mr.
Sam Goi Seng Hui. The issue price
represents a discount of
approximately 10% to the last
weighted average price.
The gross proceeds will be used
as working capital to fund
the growth and expansion of the
company’s business, and
to increase the company’s capacity
for any acquisitions in
the future.
With more consumers letting their
fingers do the
shopping, transport firms Singapore
Airlines (SIA) and
SMRT Corp have launched e-commerce
sites for their
customers. SIA announced a retail
site for its KrisFlyer and
PPS Club members, enabling them
to rack up air miles
when they use the KrisFlyer Spree
website
(www.krisflyerspree.com)
to shop at over 2,000 retailers
such as Bloomingdale's and Marks
& Spencer. Meanwhile,
SMRT has launched I'm On Board,
or iMOB, at
www.iMOB.sg,
which offers a variety of lifestyle and
consumer products, along with
special deals and
promotions.
RH Petrogas, which a month ago
disclosed that an
investor had approached its controlling
shareholders for a
potential takeover of the company,
said that there have
been no further discussions or
progress on the matter
since then.
MoneyMax Financial Services is
investing RM15.63m to
hold a 51% stake in a network
of Malaysian pawnshops
in its first overseas investment.
HLH Group plans to acquire 13,541sqm
of freehold land
in Cambodia for US$14.9m. The
land is situated in Phnom
Penh, Cambodia, in the heart of
Phnom Penh City Centre.
The group plans to develop office
tower, luxury
condominiums, and F&B and
retail buildings on the land.
Ipco International is expected
to report a loss before tax
for the full financial year ended
30 April 2014.
The loss is mainly attributable
to:
1) Unrealised fair value loss
on financial assets at fair value
through profit or loss; and
2) Allowance for impairment loss
on available-for-sale
financial assets.
ISDN Holdings, an integrated engineering
solutions
provider for diverse industries,
hydropower business is
expected to benefit from a recent
upward revision of
electricity tariff rates to be
paid to mini-hydropower
developers by the Indonesian Government.
In early May
this year, the Indonesian energy
authority announced an
increase in the amount that it
will pay electricity producers
with capacity of 10MW or less
from the current base rate
of Rp 656 (USD 0.06) to Rp 1,075
(USD .09) per Kwh.
Yamada Green Resources is proposing
to acquire19%
equity interest in Zhangzhou Meisei
Foods Co. for
RMB36.4m. Meisei is principally
engaged in the
manufacturing and supply of a
wide variety of agricultural
processed food products including
different types of
processed bamboo shoots, pickled
vegetables and other
processed vegetables. Meisei is
recognized as one of the
leading processed bamboo shoots
suppliers in Fujian
Province.
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