SG Market (27 Jan 15)

Singapore shares could pull back a little to consolidate recent gains following the muted close on Wall Street as investors wait for the policy statement from the FOMC meeting this Tue/Wed. From a chart perspective, the STI may close the breakaway gap at 3,377, which now acts as a support, before resuming its march. Overhead resistance is at at 3,465 set in May 2013. Stocks to watch: *OUE Commercial REIT: 4Q14 DPU of 1.44¢ was 5.1% ahead of IPO forecast, while distributable income was 5.5% higher than forecast at $12.6m. Revenue was 12% higher than guided at $19.6m while NPI was 14.9% ahead at $14.4m, due to better occupancy and rental reversions than budgeted. Occupancy improved 0.8ppt q/q to 98% with WALE of 2.8 years. Aggregate leverage lowered 1.5ppt to 38.3% with average cost of debt of 2.81%. BVPU at $1.10. *Ascendas India Trust: 3QFY15 DPU and distributable income rose 6% to 1.16¢ and $11.9m respectively. Revenue grew 10% to $31.8m from positive rental reversions and a stronger rupee, while NPI climbed 3% from one-off accounting items. Occupancy stood at 96%. Aggregate leverage stood at 23% with all-in cost of debt of 6.5%. BVPU at $0.60. *Viva Industrial Trust: 4Q14 DPU was at 1.701¢ (-0.7% from IPO forecasts), taking FY14 DPU to 6.833¢ (-0.5%). Gross revenue for the quarter was at $16.6m (+8.7%) and NPI at $11.0m (+8.6%), driven by higher-than-anticipated rental contribution from new business park space tenancies at UE BizHub EAST and partial rental contributions resulting from the acquisition of Jackson Square and Jackson Design Hub. Bottom-line was weighed by a 40.9% rise in finance expenses to $3.7m, from the issuance of medium term notes. Leverage ratio stands at 44.3% with average interest costs at 4.9%. Portfolio occupancy is at 80.5%, with WALE at 3.8 years. NAV/unit at $0.758. *Halcyon Agri: Proposed to acquire US$12m Centrotrade Rubber Group, a leading distributor of rubber products with several warehouses and storage tanks in Europe and US, known for its technical capabilities. The intended acquisition would spearhead Halcyon into a world-leading sourcing and distribution network for natural rubber products. *Gallant Venture: Proposed to issue $75m 7% notes due 2017, under its US$500m euro MTN programme. *CH Offshore: Falcon Energy extended the closing date for its $0.495/share voluntary conditional offer from 26 Jan to 9 Feb. To-date, group has received 1.32% valid acceptances from the offer, bringing Falcon's holdings in CH Offshore to 30.42%. *Sincap Group: Proposed to place up to 351m new shares (50% enlarged share capital) at $0.10 each. The fund raising is intended to fund group's $38.5m proposed acquisition of LTN Land, which owns a land parcel in South Perth. *Dragon Group International: Proposed placement of 27.8m new shares (8% enlarged share capital) at $0.09 apiece to Asia Green Technology. *Hock Lian Seng: Awarded contract from LTA to design and construct the stabling at Gali Batu Depot for $137.4m, scheduled to complete by Nov ’19. *Lian Beng: 51%-owned Goldprime Land had been awarded the tender for land parcel at Tampines North Drive 1 at $64.4m. *Smartflex: Pilot launch for its eco.SIM technology in Indonesia with local partner, PT Cipta Srigati Lestari. The technology is a cost-effective way to manufacture SIM cards. *Capitaland: CapitaMalls Malaysia REIT acquired Tropicana City Mall, (448k sf NLA) and fully occupied Tropicana Office Tower (101k sf NLA), both in Petaling Jaya for RM540m. *Manufacturing Integration Technology: Expects to return to profitability in FY14, from its loss position in FY13. The expected sales and profit growth was mainly due to the successful introduction of its new series of vision scanning solutions and sales of high-end die sorters. In addition, the delivery of 24 units of solar equipment and contract equipment manufacturing sales also boosted bottom line.