SG Market (08 Sep 16)

SG Market: The Singapore market could face slight profit taking as economists pared their 2017 economic growth estimate to 1.8% from 2.1%, while keeping 2016 forecast of 1.8% unchanged.

Regional bourses opened generally lower in Tokyo (-0.1%), Seoul (+0.4%) and Sydney (-1.1%).

Immediate support for STI is at 2,880, with overhead resistance at 2,960.

Stocks to watch:
*Economy: Economists trimmed their 3Q16/4Q16 GDP growth forecasts to 1.7%/1.5% from 1.8%/1.7%, respectively, but kept the full year estimate at 1.8%. Growth estimate for 2017 was also pared to 1.8% from 2.1%.

*Pacific Radiance: Reached a settlement with Shanghai Waigaoqiao Shipbuilding & Offshore and China Shipbuilding Trading, after the two shipyards failed to deliver two platform supply vessels to the group. The shipyards will refund the full pre-delivery instalment of US$10.6m and equipment cost of US$0.1m, within 60 days.

*Marco Polo Marine: Latest O&G services provider to come under liquidity crunch. The group will be holding an informal meeting with its noteholders on 13 Sep to discuss options in relation to its $50m 5.75% MTN, which expires on 18 Oct '16. Financiers DBS (Sell, TP $14.30) and UOB (Hold, TP $18.34) to come under scrutiny.

*Keppel Corp: Investing US$48.6m into a 40:60 JV with Myanmar conglomerate Shwe Taung, to develop 260 units of premium serviced residences and offices in Phase 2 of Junction City, Yangon. Construction for the 50,000 sqm gfa development is expected to commence in 2018. MKE last had a SELL with TP of $4.50.

*GLP: Completed the 24.49% syndication of its US portfolio of industrial assets for US$485m, reducing its stake to 9.85%.

*Cache Logistics Trust: Suing parent C&P and C&P Holding to claim double the amount of rent payable under the master lease agreement arising from failure of Schenker to vacant 51 Alps Avenue following expiry and non-renewal of the anchor lease in Aug.

*TEE Int'l: Awarded $95m worth of new engineering contracts, bringing outstanding order book to $324m. The new addition & alteration and M&E contracts are scheduled for completion over the next 33 months.

*Rowsley: Acquiring Ariva, a hotel management and consultancy firm, which has more than 6,500 room keys under management and in pipeline spread over 47 properties in the Asia-Pacific region, for up to $10.6m. The acquisition will be funded via cash ($1m) and 8m new shares issued at $0.15/share, with the remaining subject to the achievement of cumulative net profit target of $5.2m up till Dec '19.

*Yuexiu Property: Acquired a 52,018 sqm land parcel in Jiangmen province, China, for Rmb514.4m, or Rmb2,800 psm ppr. This brings the group's total land bank to 10.6m sqm.

*CSC Holdings: JV with Triplestar Properties and Zillion Holding entered conditional agreements with Sime Darby to purchase two pieces of freehold land in Negeri Sembilan, Malaysia, totalling 15 acres for RM43m ($14m).

*Wong Fong: 1H16 net profit tumbled 76.9% to $0.8m due to IPO expenses, higher provision for doubtful debts and increased rent. Revenue fell 30.6% to $30.6m on reduced project and equipment sales. NAV/share at $0.1359.