Wednesday, April 13, 2016

SG Market (13 Apr 16)

Regional bourses rallied this morning in Tokyo (+1.7%), Seoul (+0.6%) and Sydney (+1.1%).

From a chart perspective, STI faces immediate resistance at 2,850, with support at 2,760.

Stocks to watch:
*SPH: 2QFY16 results missed with net profit of $54.1m (-22.3% y/y), dragged by the absence of sale of investment assets and restructuring gain. Revenue slipped 4.1% to $264.2m on weaker advertising and circulation in the core media segment. Interim DPS of 7¢ maintained. NAV/share at $2.16.

*Keppel T&T: JV with Keppel Land secured $84.5m in contracts to provide co-location and data centre services at Keppel Datahub 2 from a blue-chip internet client and a government-related entity. This brings commitment at Datahub 2 to 100% within two years since its completion in 2014.

*Hyflux: Marked its foray into Egypt after clinching a USD500m EPC contract for the Ain Sokhna Integrated Water and Power Project. The desalination plant is designed to produce 150,000 m3/day with an on-site 457 MW power plant.

*Cordlife: Appointed industry veteran Tan Poh Lan as its new COO, less than a month following the sudden resignation of its long serving CEO. MKE last call was Hold with TP of $1.59.

*Sembcorp Industries: Raised stake in India-based Sembcorp Green Infra by 2.6 ppt to 67.7% for $32.6m.

*Changjiang Fertilizer: Acquiring property firms WBH Investments and Cowealth Investments for an aggregate $27.6m, via an issue of 1.8b new shares at 0.5¢ apiece and $18.7m cash. Upon completion of the RTO deal, the group will transform into an investment property firm with assets in Singapore that has a net leasable area of 3,118 sqm, which is 82% occupied with lease expiry in Mar 2038. Separately, the group has put up its China properties, worth an estimated Rmb37.6m, for public auction.

*CSC: Former employee found guilty of misappropriation of ~$0.8m and has been ordered to repay $0.4m. CSC is appealing for a full compensation.

*Chasen: Signed partnership agreement with Jilin BiYuan ShuiWu (JBW), where JBW will provide consulting to Chasen’s water and wastewater treatment arm. Upon hitting specific targets spread across two years, JBW may be awarded up to 60% stake in Chasen’s water and wastewater treatment arm.

*MGCCT: Issuing HK$600m of 3.25% medium-term notes due 20 Apr 2023 for refinancing existing borrowings. The notes are rated Baa1 by Moody’s.

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