Dow was -90 last night closing at 16041.
Europe closed mixed., Dow's trend is up but starting to turn
down. Dow's future is now -36. Europe has opened down.
Asian bourses were mostly down. Nikkei
-317, ShanghaiC -4, Hangseng -270. STI closed -3 at 3086. Volume
was 2b shares. Gainers were 200 to 250 losers.
Trend of STI is up.
Top volumes were Hankore -0.3, WCorp
+1, Albedo unchanged, CharismaEner -0.1, EMS +0.7, WE Hldg -0.6, SingHaiyi
+0.1, KLW unchanged, Noble +4, SIIC unchanged.
Market opened up but slipped down to
close marginally lower. Regional bourses were also lower after the
recent gains. Blue chips were mixed. Penny and speculatives were slightly
firmer.
Dow and Europe are looking a bit weak
at the moment. Could see a bit of pulling back tonight.
Thursday, February 20, 2014
Wednesday, February 19, 2014
Daily Summary 19 Feb 14
Dow was -24 last night closing at 16130.
Europe closed mixed. Dow's trend is still up. Dow's future
is now -11. Europe opened slightly down.
Asian bourses were mixed. Nikkei -77, ShanghaiC +23, Hangseng +77. STI closed +18 at 3089. Volume was 2.5b shares. Gainers were 230 to 218 losers.
Trend of STI is up.
Top volumes were HanKore -0.1, CharismaEner unchanged, SIIC -0.3, KLW -0.1, Vallianz unchanged, GoldenAgr +2, WE Hldg +0.4, Albedo -0.1, Transcu unchanged, JES -0.9.
Market opened up and stay up the whole day but closing off its high. Blue chips were mostly up. Penny and speculatives were mixed. Market is still trending up gradually.
Europe and Dow look like pulling back a bit tonight.
Asian bourses were mixed. Nikkei -77, ShanghaiC +23, Hangseng +77. STI closed +18 at 3089. Volume was 2.5b shares. Gainers were 230 to 218 losers.
Trend of STI is up.
Top volumes were HanKore -0.1, CharismaEner unchanged, SIIC -0.3, KLW -0.1, Vallianz unchanged, GoldenAgr +2, WE Hldg +0.4, Albedo -0.1, Transcu unchanged, JES -0.9.
Market opened up and stay up the whole day but closing off its high. Blue chips were mostly up. Penny and speculatives were mixed. Market is still trending up gradually.
Europe and Dow look like pulling back a bit tonight.
Tuesday, February 18, 2014
DBS Vickers Report 19 Feb 14
Today’s Focus
China’s SOE invests into Global Logistics Properties
China plans RMB2tril spending to tackle water pollution
Global Logistic Properties has signed an agreement with a
group of Chinese state-owned enterprises and financial
institutions for an up to US$2.5bil investment in the
company. The transaction is expected to increase GLP's
growth substantially. Its strategic partners include Bank of
China Group Investment, a wholly owned unit of Bank of
China, HOPU Funds and a large Chinese insurance company.
They will invest US$163mil in new shares of GLP's listed entity
at $2.755 per share, representing 1.5% of the issued and
outstanding shares. The remaining investment of up to
US$2.35bil will be in new shares of GLP's wholly owned
Chinese subsidiary, giving the partners a stake of up to
30.3%.
China plans to spend RMB2tril on an action plan to tackle
pollution of its scarce water resources. The plan is still being
finalised but the budget has been set, this according to the
China Securities Journal, citing the Ministry of Environmental
Protection. It will aim to improve the quality of China's water
by 30 to 50% through investments in technologies such as
waste water treatment, recycling and membrane technology.
The paper did not say how the funds would be raised, when
the plan would take effect, or what timeframe was visualised.
Our picks in the water sector are SIIC Environment and United
Envirotech.
CapitaLand achieved Group revenue of S$3.98bil for FY
2013, up 20.5% y-o-y, driven by higher revenue from its four
strategic business units – CapitaLand Singapore, CapitaLand
China, CapitaMalls Asia and The Ascott. Group operating
PATMI rose 42.9% to S$527.7mil in FY13 led by higher
contribution from development projects in China, as well as
the shopping mall business. Earnings before Interest and Tax
of S$1.80bil in FY 2013 is 10.9% lower than FY 2012. This
was mainly attributable to divestment loss as compared to a
gain in FY 2012 and higher impairments, partially mitigated
by higher operating profit and fair value gains from the
revaluation of investment properties. A dividend of 8cts per
share is declared.
US Indices Last Close Pts Chg % Chg
Dow Jones 16,130.4 (24.0) (0.1)
S&P 1,840.8 2.1 0.1
NASDAQ 4,272.8 28.8 0.7
Regional Indices
ST Index 3,070.8 1.5 0.0
ST Small Cap 532.3 2.9 0.5
Hang Seng 22,587.7 51.8 0.2
HSCEI 10,057.8 (43.4) (0.4)
HSCCI 4,280.1 (16.7) (0.4)
KLCI 1,825.2 (2.2) (0.1)
SET 1,326.2 (6.2) (0.5)
JCI 4,556.2 0.8 0.0
PCOMP 6,194.0 26.2 0.4
KOSPI 1,946.9 0.6 0.0
TWSE 8,556.2 36.7 0.4
Nikkei 14,843.2 450.1 3.1
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 566
Total Daily Vol (m shrs) 3,336
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$)
18 Feb
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.635 0.76
Keppel Corp Buy 10.510 12.60
ST Engineering Buy 3.800 4.90
Yangzijiang Buy 1.135 1.32
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
18 Feb
Target Price
($)
Ezion Holdings Buy 2.330 3.36
China Merchants Buy 0.890 1.20
Pacific Radiance Ltd Buy 0.950 1.05
Nam Cheong Buy 0.335 0.43
Source: Bloomberg Finance L.P., DBS Bank
Singapore
Wired Daily
Page 2
US indices finished mixed with the S&P 500 Index climbing
to within 8 points of a record as M&A news offset slower
growth in New York-area manufacturing. The Fed Bank of
New York’s general economic index fell to 4.48 (consensus
8.5) in February from 12.5 in January. The Fed will release
minutes from its Jan. 28-29 meeting tonight, giving
investors details on central bank policy makers’ decision to
trim bond purchases by US$10bil for a second time. Our
economist notes that the biggest risk to the outlook and to
Fed policy is in the housing sector. It is not supporting
growth like it once was. In the 4Q GDP accounts, home
construction fell by 9.8% (QoQ, saar). That will be repeated
if mortgage applications and home sales don’t make a Uturn
soon. Several Fed officials have said that serious
trouble would be necessary to push the Fed off its tapering
path. Falling home sales qualify
China’s SOE invests into Global Logistics Properties
China plans RMB2tril spending to tackle water pollution
Global Logistic Properties has signed an agreement with a
group of Chinese state-owned enterprises and financial
institutions for an up to US$2.5bil investment in the
company. The transaction is expected to increase GLP's
growth substantially. Its strategic partners include Bank of
China Group Investment, a wholly owned unit of Bank of
China, HOPU Funds and a large Chinese insurance company.
They will invest US$163mil in new shares of GLP's listed entity
at $2.755 per share, representing 1.5% of the issued and
outstanding shares. The remaining investment of up to
US$2.35bil will be in new shares of GLP's wholly owned
Chinese subsidiary, giving the partners a stake of up to
30.3%.
China plans to spend RMB2tril on an action plan to tackle
pollution of its scarce water resources. The plan is still being
finalised but the budget has been set, this according to the
China Securities Journal, citing the Ministry of Environmental
Protection. It will aim to improve the quality of China's water
by 30 to 50% through investments in technologies such as
waste water treatment, recycling and membrane technology.
The paper did not say how the funds would be raised, when
the plan would take effect, or what timeframe was visualised.
Our picks in the water sector are SIIC Environment and United
Envirotech.
CapitaLand achieved Group revenue of S$3.98bil for FY
2013, up 20.5% y-o-y, driven by higher revenue from its four
strategic business units – CapitaLand Singapore, CapitaLand
China, CapitaMalls Asia and The Ascott. Group operating
PATMI rose 42.9% to S$527.7mil in FY13 led by higher
contribution from development projects in China, as well as
the shopping mall business. Earnings before Interest and Tax
of S$1.80bil in FY 2013 is 10.9% lower than FY 2012. This
was mainly attributable to divestment loss as compared to a
gain in FY 2012 and higher impairments, partially mitigated
by higher operating profit and fair value gains from the
revaluation of investment properties. A dividend of 8cts per
share is declared.
US Indices Last Close Pts Chg % Chg
Dow Jones 16,130.4 (24.0) (0.1)
S&P 1,840.8 2.1 0.1
NASDAQ 4,272.8 28.8 0.7
Regional Indices
ST Index 3,070.8 1.5 0.0
ST Small Cap 532.3 2.9 0.5
Hang Seng 22,587.7 51.8 0.2
HSCEI 10,057.8 (43.4) (0.4)
HSCCI 4,280.1 (16.7) (0.4)
KLCI 1,825.2 (2.2) (0.1)
SET 1,326.2 (6.2) (0.5)
JCI 4,556.2 0.8 0.0
PCOMP 6,194.0 26.2 0.4
KOSPI 1,946.9 0.6 0.0
TWSE 8,556.2 36.7 0.4
Nikkei 14,843.2 450.1 3.1
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 566
Total Daily Vol (m shrs) 3,336
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$)
18 Feb
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.635 0.76
Keppel Corp Buy 10.510 12.60
ST Engineering Buy 3.800 4.90
Yangzijiang Buy 1.135 1.32
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
18 Feb
Target Price
($)
Ezion Holdings Buy 2.330 3.36
China Merchants Buy 0.890 1.20
Pacific Radiance Ltd Buy 0.950 1.05
Nam Cheong Buy 0.335 0.43
Source: Bloomberg Finance L.P., DBS Bank
Singapore
Wired Daily
Page 2
US indices finished mixed with the S&P 500 Index climbing
to within 8 points of a record as M&A news offset slower
growth in New York-area manufacturing. The Fed Bank of
New York’s general economic index fell to 4.48 (consensus
8.5) in February from 12.5 in January. The Fed will release
minutes from its Jan. 28-29 meeting tonight, giving
investors details on central bank policy makers’ decision to
trim bond purchases by US$10bil for a second time. Our
economist notes that the biggest risk to the outlook and to
Fed policy is in the housing sector. It is not supporting
growth like it once was. In the 4Q GDP accounts, home
construction fell by 9.8% (QoQ, saar). That will be repeated
if mortgage applications and home sales don’t make a Uturn
soon. Several Fed officials have said that serious
trouble would be necessary to push the Fed off its tapering
path. Falling home sales qualify
OCBC Report 19 Feb 14
| KEY IDEA United Envirotech: More in store for FY15 Summary: Although United Envirotech Ltd (UEL) posted 9MFY14 earnings that fell short of our forecast, management remains upbeat about its waste-water treatment prospects in China, especially after getting the nod to acquire the membrane making operations of Memstar Technology. UEL not only expects to see cost-savings from making its own membrane, but it is also looking to go into third party membrane sales soon. To reflect the latest development, we bump up our FY15 revenue estimate by 20% but pare earnings by 2%. We also raise our valuation peg from 15x to 20x FY15F EPS, thus improving our fair value from S$1.00 to S$1.30. But given the limited upside, we maintain our HOLD rating. (Carey Wong) MORE REPORTS CapitaLand Limited: Marred by divestment and impairment losses Summary: CapitaLand’s 4Q13 PATMI decreased 45.6% YoY to S$142.9m, mostly due to divestment losses from its 20% Australand stake, impairments from investments in China, India, Abu Dhabi and Australia and forex losses. FY13 PATMI cumulates to S$849.8m, which fell 9.5% short of our full year forecast, and we judge these results to be below our expectations and consensus. Excluding one-time items, however, operating PATMI for FY13 stands at S$527.7m, which is a respectable 42.9% increase. 4Q13 topline is S$1,085.1m, down 2.3% YoY mostly due to the deconsolidation of Australand and lower revenues from domestic development projects. Over FY13, we saw 1,260 residential units sold in Singapore, up significantly versus the 681 units sold in FY12. In China, residential sales were mostly flat at 3,009 units – still a healthy pace – which is a mild 4.8% dip versus FY12. Chinese township project sales increased 35.6%% to 4,679 units. A dividend of 8.0 S-cents per share was proposed. We would speak with management regarding these results and, in the meantime, maintain BUY with our fair value estimate of S$3.77 under review. (Eli Lee) |
For more information on the above, visit www.ocbcresearch.comfor the detailed report. |
NEWS HEADLINES - US stocks ended Tue generally higher with the Nasdaq Composite recording its eighth consecutive session of gains, the longest since Jul 2013. - Market watchers saw red and yellow over reports that Temasek Holdings is toying with selling its US$3.1b stake in Thailand's Shin Corp to Singapore Telecommunications. - Global Logistic Properties has signed an agreement with a group of Chinese state-owned enterprises and financial institutions for an up to US$2.5b investment in the company. - Shares in Biosensors International Group shot up 14% in a matter of minutes yesterday on reports that a Chinese private-equity investor may offer to privatise the company. - United Overseas Bank has doubled its number of cross-border loans to businesses since setting up its first foreign direct investment (FDI) advisory unit here in Jun 2011. - Neo Kim Hock, executive chairman of Blumont Group, has been sued by Coutts & Co, taking the sum banks and brokers are seeking to recover from an Oct crash to at least US$140m. |
Daily Summary 18 Feb 14
Europe were up last night. Dow was closed.
Dow's trend is up. Dow's future is now +26. Europe now slightly
down.
Asian bourses were mixed. Nikkei +450, ShanghaiC -16, Hangseng +52. STI closed +1.5 t at 3071. Volume was 3.3b shares. Gainers were 283 and losers 170.
STI's trend is up.
Top volumes were Hankore +0.6, KLW +0.5, JES +1.8, Federal +0.4, CharismaEner +0.2, Albedo -0.4, Vallianz +0.9, Memstar +0.5, OttoMarine +0.3, Blumont +0.3.
Market opened up but traded almost flat throughout the day. Blue chips were mixed. Penny and speculatives fared better. Volumes were higher passing the 3b mark.
Dow is looking positive for tonight while Europe looking a bit weaker.
Asian bourses were mixed. Nikkei +450, ShanghaiC -16, Hangseng +52. STI closed +1.5 t at 3071. Volume was 3.3b shares. Gainers were 283 and losers 170.
STI's trend is up.
Top volumes were Hankore +0.6, KLW +0.5, JES +1.8, Federal +0.4, CharismaEner +0.2, Albedo -0.4, Vallianz +0.9, Memstar +0.5, OttoMarine +0.3, Blumont +0.3.
Market opened up but traded almost flat throughout the day. Blue chips were mixed. Penny and speculatives fared better. Volumes were higher passing the 3b mark.
Dow is looking positive for tonight while Europe looking a bit weaker.
Monday, February 17, 2014
OCBC Report 18 Feb 14
| KEY IDEA CapitaMall Trust: Worth a revisit Summary: CapitaMall Trust (CMT) has continued to underperform both its local retail REIT peers and the broader S-REITs sector YTD, despite its enhanced portfolio assets, financial position and strong track record. At current price, we believe that valuation is increasingly compelling, now that CMT is trading at 1.04x P/B, and offers a FY14F yield of 6.1%. In the past year, CMT has benefitted from higher secured rentals at several of its portfolio properties post asset enhancement initiatives (AEIs). We believe CMT will continue to focus largely on organic growth via AEI and tenant repositioning to improve its portfolio yield. The domestic landscape has also been supportive of the retail leasing demand, given the relatively resilient retail sales, expanding population and interest from international and new-to-market retailers. Maintain BUY and S$2.20 fair value on CMT. (Kevin Tan) MORE REPORTS Mapletree Logistics Trust: Fire at Mapletree Xi’an Distribution Centre Summary: Mapletree Logistics Trust (MLT) reported that a fire broke out at one of its China properties, Mapletree Xi’an Distribution Centre, last Sat evening. One of the two blocks of buildings at the property was partially damaged by the fire. The fire has been put out and no injuries were reported. We note that the property is insured for physical damage and loss of business income for a period of 18 months, and that the property accounts for only 0.4% of MLT’s gross revenue. Hence, we expect minimal impact on MLT’s portfolio relating to the fire incident. We are maintaining our HOLD rating and fair value of S$1.06 on MLT. (Kevin Tan) |
| For more information on the above, visit www.ocbcresearch.comfor the detailed report. |
NEWS HEADLINES - Singapore's non-oil domestic exports (NODX) declined 3.3% YoY in Jan, due to lacklustre electronics shipments. - Singapore notched a record 15.5m visitor arrivals last year, a 7.2% rise from 2012 that outpaced the more subdued 1.6% increase in tourism spend. - Rail operators here are in for heftier fines for train disruptions, with the maximum penalty now raised to 10% of the rail line's annual fare revenue. - Hiap Hoe Limited has bagged its fourth acquisition in Australia - an A-grade commercial building in Perth - for A$90m (S$102.3m). - Blumont Group will be investing about A$1.95m (S$2.2m) in an Australia-listed diamond miner, its first foray into the precious stones sector. - OSIM International has been served a writ of summons by The Wellness Group Pte Ltd and its chairman, Manoj Murjani, over its shares in TWG Tea. - Cryoviva Singapore, a JV company between SGX-Catalist-listed AsiaMedic Ltd and Cryoviva International, has been licensed to run Singapore's third private cord-blood bank. |
DBS Vickers Report 18 Feb 14
Today’s Focus
OSIM - Sued over its shares in TWG Tea
OSIM International has been served a writ of summons by
The Wellness Group Pte Ltd and its chairman, Manoj Murjani,
over its shares in TWG Tea. The claim in the writ of summons
relates to the recent subscription by OSIM and Paris
Investment of the shares in TWG Tea and other disputes. The
Wellness Group and Manoj claimed that the issuance of
shares was an act of minority oppression and is in breach of
the terms of the shareholders agreement dated March 18,
2011, entered into between OSIM, Paris Investment, The
Wellness Group, and TWG Tea. OSIM first acquired a 35%
stake in TWG Tea in April 2011 for $31.36m. This was raised
to 45% last July, and 53.7% in October. Last month, OSIM
raised its stake in the luxury tea company to 70%, when
TWG Tea undertook a rights issue to raise $25m.
Singapore's Temasek Holdings is seeking to sell its US$3.1bn
stake in Thai telecom company Shin Corp, according to
Business Times, and has approached SingTel as a possible
buyer. Temasek, which owns 41.6% of Shin Corp through a
subsidiary, held talks with SingTel late last year, but those
discussions have since stalled, according to sources.
SIA’s operating results for January 2014. In January, SIA’s
systemwide passenger carriage increased 2.2% against
capacity growth of 1.3%. Consequently, passenger load
factor (PLF) increased 0.8 percentage points to 79.1%. The
number of passengers carried increased by 3.2% to 1.6 m.
PLF improved across all route regions except East Asia. PLF for
East Asia declined 0.9 percentage points as the region
continues to absorb the increase in capacity and demand to
Bangkok remains weak. The operating environment continues
to remain challenging. Efforts to stimulate demand to boost
loads will continue to place downward pressure on yields.
Cargo traffic was 0.4% lower, while cargo capacity remained
flat year-on-year. Consequently, cargo load factor was
marginally lower by 0.2 percentage points at 60.5%.
KS Energy has secured a contract for the provision of a new
300ft drilling rig in Vietnam for Vietsovpetro. The contract is
for a period of one year with an option to extend for an
US Indices Last Close Pts Chg % Chg
Dow Jones 16,154.4 126.8 0.8
S&P 1,838.6 8.8 0.5
NASDAQ 4,244.0 3.4 0.1
Regional Indices
ST Index 3,069.3 30.6 1.0
ST Small Cap 529.4 3.7 0.7
Hang Seng 22,535.9 237.5 1.1
HSCEI 10,101.2 167.5 1.7
HSCCI 4,296.7 4.4 0.1
KLCI 1,827.5 8.1 0.4
SET 1,332.4 20.5 1.6
JCI 4,555.4 47.3 1.0
PCOMP 6,167.8 54.2 0.9
KOSPI 1,950.1 3.8 0.2
TWSE 8,519.6 5.9 0.1
Nikkei 14,393.1 80.1 0.6
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 561
Total Daily Vol (m shrs) 2,892
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$)
17 Feb
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.640 0.76
Keppel Corp Buy 10.500 12.60
ST Engineering Buy 3.800 4.90
Yangzijiang Buy 1.140 1.32
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
17 Feb
Target Price
($)
Ezion Holdings Buy 2.320 3.36
China Merchants Buy 0.890 1.20
Pacific Radiance Ltd Buy 0.955 1.05
Nam Cheong Buy 0.340 0.43
Source: Bloomberg Finance L.P., DBS Bank
Singapore
Wired Daily
Page 2
additional one year and is due to commence in 2Q FY14.
The total value of the contract, excluding the potential
extension, is approximately US$58m.
Armarda Group is partnering with Chinese marine
navigation and communications systems and handheld
fisheries rescue terminals, Zoeru (Fujian) Communications to
deliver marine-based mobile satellite solutions for Chinese
marine fisheries vessels and personnel. According to Zoeru’s
spokesman, currently it has approximately 30% market
share in the marine navigation and communication systems,
and approximately 70% market share in the marine rescue
handheld terminals in China. Based on National Marine
Fisheries Service’s requirements, the demand for satellite
communication terminals from registered marine fisheries
vessels and satellite mobile phones from marine fisheries
personnel are about 250,000 and 500,000 respectively.
Zoeru has placed an order of 3,000 mobile satellite
communication equipments.
Cryoviva Singapore, a joint venture company between
Cryoviva International and SGX-Catalist listed AsiaMedic, set
up in July last year to meet the rising demand for cord blood
banking services, is licensed to run Singapore’s third cord
blood bank. Cryoviva Singapore Laboratory Services has
appointed the Singapore Cord Blood Bank to contract
process and store all its cord blood units. Spurred by an
improved understanding and better treatment protocols
using stem cell therapy, cord blood banking is now one of
the fastest growing segments of the healthcare industry. It
was valued at US$12.40 bn in 2012 and is expected to
grow at a CAGR (Compound Annual Growth Rate) of 5.6%
from 2013 to 2019, to reach an estimated value of
US$15.23 bn in 2019, according to Transparency Market
Research.
Hiap Hoe announced a A$90m purchase for 130 Stirling
Street, an A-grade commercial building that sits on a quality
5,033 sq m site along the northern fringe of Perth’s CBD.
The acquisition is in line with Hiap Hoe’s strategy to build up
a geographically diversified portfolio of income-generating
assets. With the acquisition of 130 Stirling Street, Hiap
Hoe’s portfolio of investment properties in Australia now
include three quality assets in Melbourne and one in Perth.
China Haida is expected to report net loss for FY13, mainly
due to provision of outstanding debts.
Developers sold 565 private homes excluding ECs in Jan
2014, up from 259 units in Dec 2013. In January 2013, they
sold 2,028 private homes. Including ECs, which are a publicprivate
housing hybrid, developers moved 610 homes last
month, again up from 333 homes in December but much
lower than the 2,284 units they sold in January 2013.
Market watchers note that last month, developers chose to
hold back launches amid the lull leading up to Chinese New
Year festivities this year, on the back of generally weak
sentiment. As for this month, property consultants'
forecasts of developer sales range from 600 to over 1,000
units. For the whole of 2014, most property consultants
predict developers could sell around 10,000-12,000 private
homes excluding ECs. Last year's figure was 14,948 units,
down from 2012's record of 22,197 units.
Singapore notched a record 15.5m visitor arrivals last year, a
7.2% rise from 2012 that outpaced the more subdued
1.6% increase in tourism spend, which was dragged down
partly by smaller corporate budgets. Tourism spend worked
out to $23.5bn in 2013, the weakest performance since the
global financial crisis in 2009, when tourism receipts sank
19% to $12.4bn. The Singapore Tourism Board had
projected tourism receipts of between S$23.5bn and
S$24.5bn, and visitor arrivals of between 14.8m and 15.5m
for 2013. Our analyst expects tourism receipts to hit $26bn
for 2014, while visitor arrivals will climb to 16.3m
OSIM - Sued over its shares in TWG Tea
OSIM International has been served a writ of summons by
The Wellness Group Pte Ltd and its chairman, Manoj Murjani,
over its shares in TWG Tea. The claim in the writ of summons
relates to the recent subscription by OSIM and Paris
Investment of the shares in TWG Tea and other disputes. The
Wellness Group and Manoj claimed that the issuance of
shares was an act of minority oppression and is in breach of
the terms of the shareholders agreement dated March 18,
2011, entered into between OSIM, Paris Investment, The
Wellness Group, and TWG Tea. OSIM first acquired a 35%
stake in TWG Tea in April 2011 for $31.36m. This was raised
to 45% last July, and 53.7% in October. Last month, OSIM
raised its stake in the luxury tea company to 70%, when
TWG Tea undertook a rights issue to raise $25m.
Singapore's Temasek Holdings is seeking to sell its US$3.1bn
stake in Thai telecom company Shin Corp, according to
Business Times, and has approached SingTel as a possible
buyer. Temasek, which owns 41.6% of Shin Corp through a
subsidiary, held talks with SingTel late last year, but those
discussions have since stalled, according to sources.
SIA’s operating results for January 2014. In January, SIA’s
systemwide passenger carriage increased 2.2% against
capacity growth of 1.3%. Consequently, passenger load
factor (PLF) increased 0.8 percentage points to 79.1%. The
number of passengers carried increased by 3.2% to 1.6 m.
PLF improved across all route regions except East Asia. PLF for
East Asia declined 0.9 percentage points as the region
continues to absorb the increase in capacity and demand to
Bangkok remains weak. The operating environment continues
to remain challenging. Efforts to stimulate demand to boost
loads will continue to place downward pressure on yields.
Cargo traffic was 0.4% lower, while cargo capacity remained
flat year-on-year. Consequently, cargo load factor was
marginally lower by 0.2 percentage points at 60.5%.
KS Energy has secured a contract for the provision of a new
300ft drilling rig in Vietnam for Vietsovpetro. The contract is
for a period of one year with an option to extend for an
US Indices Last Close Pts Chg % Chg
Dow Jones 16,154.4 126.8 0.8
S&P 1,838.6 8.8 0.5
NASDAQ 4,244.0 3.4 0.1
Regional Indices
ST Index 3,069.3 30.6 1.0
ST Small Cap 529.4 3.7 0.7
Hang Seng 22,535.9 237.5 1.1
HSCEI 10,101.2 167.5 1.7
HSCCI 4,296.7 4.4 0.1
KLCI 1,827.5 8.1 0.4
SET 1,332.4 20.5 1.6
JCI 4,555.4 47.3 1.0
PCOMP 6,167.8 54.2 0.9
KOSPI 1,950.1 3.8 0.2
TWSE 8,519.6 5.9 0.1
Nikkei 14,393.1 80.1 0.6
STI Index Performance
Singapore
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
100-Day MA
Index
STI
Total Market cap (US$bn) 561
Total Daily Vol (m shrs) 2,892
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$)
17 Feb
Target Price
(S$)
Hutchison Port Hldgs Trust (US$) Buy 0.640 0.76
Keppel Corp Buy 10.500 12.60
ST Engineering Buy 3.800 4.90
Yangzijiang Buy 1.140 1.32
Stock Picks – Small /Mid Cap
Rec’n Price (S$)
17 Feb
Target Price
($)
Ezion Holdings Buy 2.320 3.36
China Merchants Buy 0.890 1.20
Pacific Radiance Ltd Buy 0.955 1.05
Nam Cheong Buy 0.340 0.43
Source: Bloomberg Finance L.P., DBS Bank
Singapore
Wired Daily
Page 2
additional one year and is due to commence in 2Q FY14.
The total value of the contract, excluding the potential
extension, is approximately US$58m.
Armarda Group is partnering with Chinese marine
navigation and communications systems and handheld
fisheries rescue terminals, Zoeru (Fujian) Communications to
deliver marine-based mobile satellite solutions for Chinese
marine fisheries vessels and personnel. According to Zoeru’s
spokesman, currently it has approximately 30% market
share in the marine navigation and communication systems,
and approximately 70% market share in the marine rescue
handheld terminals in China. Based on National Marine
Fisheries Service’s requirements, the demand for satellite
communication terminals from registered marine fisheries
vessels and satellite mobile phones from marine fisheries
personnel are about 250,000 and 500,000 respectively.
Zoeru has placed an order of 3,000 mobile satellite
communication equipments.
Cryoviva Singapore, a joint venture company between
Cryoviva International and SGX-Catalist listed AsiaMedic, set
up in July last year to meet the rising demand for cord blood
banking services, is licensed to run Singapore’s third cord
blood bank. Cryoviva Singapore Laboratory Services has
appointed the Singapore Cord Blood Bank to contract
process and store all its cord blood units. Spurred by an
improved understanding and better treatment protocols
using stem cell therapy, cord blood banking is now one of
the fastest growing segments of the healthcare industry. It
was valued at US$12.40 bn in 2012 and is expected to
grow at a CAGR (Compound Annual Growth Rate) of 5.6%
from 2013 to 2019, to reach an estimated value of
US$15.23 bn in 2019, according to Transparency Market
Research.
Hiap Hoe announced a A$90m purchase for 130 Stirling
Street, an A-grade commercial building that sits on a quality
5,033 sq m site along the northern fringe of Perth’s CBD.
The acquisition is in line with Hiap Hoe’s strategy to build up
a geographically diversified portfolio of income-generating
assets. With the acquisition of 130 Stirling Street, Hiap
Hoe’s portfolio of investment properties in Australia now
include three quality assets in Melbourne and one in Perth.
China Haida is expected to report net loss for FY13, mainly
due to provision of outstanding debts.
Developers sold 565 private homes excluding ECs in Jan
2014, up from 259 units in Dec 2013. In January 2013, they
sold 2,028 private homes. Including ECs, which are a publicprivate
housing hybrid, developers moved 610 homes last
month, again up from 333 homes in December but much
lower than the 2,284 units they sold in January 2013.
Market watchers note that last month, developers chose to
hold back launches amid the lull leading up to Chinese New
Year festivities this year, on the back of generally weak
sentiment. As for this month, property consultants'
forecasts of developer sales range from 600 to over 1,000
units. For the whole of 2014, most property consultants
predict developers could sell around 10,000-12,000 private
homes excluding ECs. Last year's figure was 14,948 units,
down from 2012's record of 22,197 units.
Singapore notched a record 15.5m visitor arrivals last year, a
7.2% rise from 2012 that outpaced the more subdued
1.6% increase in tourism spend, which was dragged down
partly by smaller corporate budgets. Tourism spend worked
out to $23.5bn in 2013, the weakest performance since the
global financial crisis in 2009, when tourism receipts sank
19% to $12.4bn. The Singapore Tourism Board had
projected tourism receipts of between S$23.5bn and
S$24.5bn, and visitor arrivals of between 14.8m and 15.5m
for 2013. Our analyst expects tourism receipts to hit $26bn
for 2014, while visitor arrivals will climb to 16.3m
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