SG Market (07 Jul 15)

Singapore shares could open higher, after US stocks finished mildly lower overnight, recovering from sharply early losses as traders shook off concerns of contagion from Greece.

Regional bourses are trading higher this morning in Tokyo (+1.4%), Seoul (+0.3%) and Sydney (+1.5%).

From a chart perspective, downside support for the STI remains at its recent low of 3,268, with overhead resistance at the 3,360 triple-top.

Stocks to watch:
*IPO: The first potential mainboard listing for 2015 by Manulife US REIT on SGX has been shelved by its REIT manager, citing the volatile capital markets which has weighed on demand. Depending on market conditions, the IPO is expected to proceed at a later date. The number of IPO transactions on SGX this year has been anaemic, with a mere $56m raised year-to-date, and all on the Catalist board.

*Triyards: 3QAugFY15 results below estimates, as net profit dropped 14% y/y to US$5.4m, weighed by higher admin expenses (+91%) from the acquisition of Strategic Marine (SM). Revenue improved 16% to US$63.9m, driven by revenue recognition from construction of four self-elevating units, as well as maiden contributions from SM. NAV/unit at US$0.6189.

*EMAS Offshore: 3QAugFY15 net profit rocketed to US$5.2m from US$0.2m, mainly due to higher associate contribution from Perisai Kamelia and Lewek EMAS, acquired in Oct '14. Meanwhile, Revenue fell 15% to US$59.2m due to weakness in both the shallow water AHTS vessels and shallow water PSV segments, while gross margin dropped 3.4ppt to 10.1%. NAV/share at US$1.15.

*Wilmar: Announced the creation of a JV group alongside Volac International, to develop their added value animal feed fat business around the world. The JV will become a global leader in animal feed fats, supporting the dairy farming industry through deep nutritional expertise.

*Ezion: Subscribing for a 30% stake in Rotating Offshore Solutions (ROS) for a consideration of $18m through an equity share swap. Ezion will issue 17.5m new Ezion shares, representing 1.09% of its enlarged capital, at $1.0287/share in exchange for 321,429 shares in ROS. Ezion believes that the acquisition will create synergies between the two companies, and better support customers on their production support related activities in the offshore oil and gas industry.

*iFAST Corporation: To issue 694,400 new shares (0.27% share capital) at $1.44 apiece to Crouzet, a third party nominee that is a settlement agent for iFAST for certain trailer fees with financial advisory companies. The transaction is part of the group's initiative to build loyalty with its business partners.

*FSL Trust: Secured new two-year time charter agreements for three tankers- FSL Shanghai, FSL Hamburg and FSL Singapore. Contracted rates are significantly above current employment rates for all three vessels and expected to generate up to US$61m in revenue over the next three years.

*Noble Group: Initiated third party review with PricewaterhouseCoopers of mark to market models, valuations and governance framework.

*Cordlife: Rejected an unsolicited offer to acquire its 7.3m ordinary shares and 7% senior unsecured convertible notes in China Cord Blood Corporation (CCBC), as a disposal agreement with CCBC has been signed.

*mDR: Entered into MOU with four shareholders (vendors) to acquire a Japan-based company that primarily engages in the business of developing and providing mobile content. The consideration is between $110m and $165, and could result in a reverse takeover of the company.

*Hong Leong Asia: 37%-owned US-listed China Yuchai won a bid to provide ~1,300 engines for school buses to be exported to Saudi Arabia.

*Ntegrator: Issued writ of summon for 28.6m baht ($1.1m) for amounts owing under a fiber optic connection contract. Ntegrator intends to seek legal advice and will provide an update when appropriate.