Pan-United

Pan-United: DBS maintains Buy with TP$0.78 up from $0.70. Earnings were up 51% yoy on higher demand for ready-mix concrete and disposal gains of $2.2m. Demand increased due to Downtown Line, LNG Terminal and Sports Hub projects. Highlights co’s div yield at attractive 6%. Demand for building materials is expected to remain buoyant on the back of robust construction spending projected by the BCA at c.S$30bn in 2012. Shipping division is expected to bottom out gradually on stabilising industry outlook while Ports division’s net margin is likely to be challenged by higher taxes.