Today’s Focus
Jardine
Cycle & Carriage - Initiate coverage with BUY
recommendation and target price
of S$49.88.
We initiate coverage on Jardine
Cycle & Carriage (JCC) with a
BUY recommendation and target
price of S$49.88. JCC is a
near 100% proxy for Jakarta-listed
Astra International (Astra),
with exposure to S.E. Asia’s
automotive market. The Group
owns 50.1% of Jakarta-listed Astra
International (Astra), which
contributes c.94% of the Group’s
total underlying profit. We
expect firm double-digit earnings
growth in 2015 and 2016,
driven by contribution from Astra.
The stock also offers a
decent dividend yield of c.3.5%.
Two Chinese giants - a leading
online travel firm and an ecommerce
heavyweight - may be vying for
a slice of Singaporelisted
Asiatravel.com, an online travel
reservation service
provider, to tap the booming e-ticketing
travel space in China.
The potential bidders have yet
to put a firm offer. Last month,
after releasing a weak financial
scorecard for the second
quarter, Asiatravel said it was
in "advance discussions with
various parties to explore all
strategic and M&A options".
Ley Choon Group has successfully
secured a contract worth
approximately S$38.2m awarded
by the Ministry of Local
Government and Provincial Councils
Sri Lanka. The contract is
for the rehabilitation of selected
10km of sewer lines and
assessment of 125km of sewer lines
within Colombo Municipal
Council Area and the term of the
contract is 30 months.
Communication Design International
is placing up to 87.2m
new shares at an issue price of
S$0.10 each. The estimated net
proceeds of S$8.4m will be used
to fund potential acquisitions
and investments, and for general
working capital.
Increasing uncertainty in global
economic conditions and
weaker than targeted business
performances are expected to
contribute to the slight dip in
average salary increments for
2014 and 2015. According to the
latest pay report by Hay
Group, a global management consultancy
firm, salaries are set
to rise at 4.3% for 2014, lower
than 4.9% the previous year.
The projected average pay rise
for next year is 4.2%. Actual
US Indices Last Close Pts Chg
% Chg
Dow Jones
16,722.3 (21.3) (0.1)
S&P
1,924.2 (0.7) (0.0)
NASDAQ
4,234.1 (3.1) (0.1)
Regional Indices
ST Index
3,296.7 (5.6) (0.2)
ST Small Cap
558.0 (0.5) (0.1)
Hang Seng
23,291.0 209.4 0.9
HSCEI
10,368.1 118.4 1.2
HSCCI
4,333.8 68.7 1.6
KLCI
1,872.6 8.3 0.4
SET
1,454.2 13.3 0.9
JCI
4,942.2 30.1 0.6
PCOMP
6,800.8 90.4 1.3
KOSPI
2,008.6 6.6 0.3
TWSE
9,123.5 47.5 0.5
Nikkei
15,034.3 98.3 0.7
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011
2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 616
Total Daily Vol (m shrs) 1,714
12m ST Index High 3,302
12m ST Index Low 2,960
Source: Bloomberg Finance L.P.
Stock Picks – Large
Cap
Rec’n Price (S$)
3 Jun
Target Price
(S$)
ComfortDelgro Buy 2.400 2.50
Global Logistic Properties Buy
2.750 3.42
Mapletree Greater China
Commercial Trust
Buy 0.885 1.02
Thai Beverage Public Buy 0.635
0.68
Stock Picks – Small
Cap
Rec’n Price (S$)
3 Jun
Target Price
(S$)
Vard Holdings Buy 1.115 1.21
Nam Cheong Buy 0.390 0.47
Centurion Corporation Buy 0.725
0.86
Source: DBS Bank
Singapore
Wired Daily
Page 2
average variable bonuses, on the
other hand, are set to
grow. For the 12 months up to
March 1, the average
variable bonus was 2.5 months,
up 0.3 months from the 2.2
in the corresponding period last
year. The projected average
bonus for 2015 is 2.4 months.
Lower inventory and finished goods
sub-indices pulled
Singapore’s May's purchasing
managers' index (PMI) down
to a reading of 50.8, from April's
six-month high of 51.1.
This also disappointed the market,
who had expected that
the index - seen as a barometer
of manufacturing activity -
to rise to 51.3 last month. The
electronics PMI held steady
at 50.4 in May is an encouraging
sign, particularly after
April's manufacturing figures
presented a surprise dip due
to a cutback in production at
a single semiconductor plant.
In China, the final HSBC/Markit
purchasing managers' index
(PMI) rose to 49.4 in May, a four-month
high and compared
to April's 48.1. China's factory
and services sectors had their
best showings in months in May
as demand rebounded.
Though the final reading was still
under the 50-point level
that separates growth in activity
from contraction, the
improvement nonetheless stirred
hopes that the economy is
working its way through its prolonged
soft patch. The
buoyancy was mirrored by a similar
acceleration in growth
in services, where a government-released
PMI climbed to a
six-month high of 55.5, from April's
54.8.
US stocks were little changed
as investors awaited an ECB
decision on stimulus measures
as well as the release of US
May employment numbers on Friday.
Eurozone’s core CPI
for May rose a lesser than expected
0.7% (consensus
0.8%), which ups the pressure
on the ECB to deploy
stimulus measures as soon as this
week that can include
negative interest rates to conditional
liquidity for banks.
No comments:
Post a Comment