Merry Xmas

Merry Xmas & a Happy New Year.

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SG Market (19 Dec 17)

MARKET OVERVIEW
- Risk-on mood could spill over to the SG market, on optimism that the US tax bill could be passed in the near term.
- Technically, the STI sees downside support at 3,390, with upside resistance at 3,475.

SECTOR WATCH
*Aviation
- Singapore Changi Airport welcomed a record 60m passengers ytd, surpassing 2016's 58.7m.
- This would be positive for airport operator SATS.

POSITIVE NEWS
*Keppel Corp
- Acquiring two prime sites (13ha & 6ha) in Ho Chi Minh City to build 1,549 homes with total development cost of US$297m.
- One 13-ha site in the city south will be developed into 220 landed homes and a 1.029-unit condominium with GFA of 36,110 sqm and 141,540 sqm respectively and will cost US$235m.
- The other 6-ha plot located in District 9 will have 300 homes with GFA of 55,000 sqm, costing US$62m.
- The two projects add to its pipeline of over 20,000 homes in Vietnam.
- The group sold 1,010 homes in 9M17, four times the number it sold in the same period last year, and has received positive response for Tilia Residences, Phase 2 of Empre City, which was launched un Julu and has sold more than 90% out of 472 units launched as at Sep.
- Last traded at 15.1x forward P/E.

*Citic Envirotech
- Secured an EPC contract worth Rmb130m in Xiangban City, Fujian Province, China.
- The project involves the upgrading and expansion of an existing conventional wastewater treatment plant by 12.5% to 90,000 m3/day, and improving water quality to Grade 1A from 1B, and is slated to be completed by Jun '18.
- Trades at 17.1x forward P/E.

*Oxley
- Updated that its Royal Wharf project in UK achieved its 1,000-unit handover milestone.
- The 3,385-unit development is ~90% sold and Oxley expects to hand over another 400 units by 30 Jun '18.
- Trades at 25% discount to its RNAV/share at $0.84.

*Jumbo
- Entered franchise agreement with Ho Sing Food to establish and operate JUMBO Seafood restaurants in Taiwan.
- The franchise agreement has an initial term of 10 years, with the franchisee targeting eight outlets across Taiwan.
- The group also updated that its first JUMBO Seafood outlet in Taiwan was opened three days back.
- Trades at 21.3x forward P/E.

*MindChamps
- Signed master franchise agreement with Evergrande Group in Vietnam to open 20 PreSchool and Reading centres in the country.
- Trades at FY16 P/E of 29.9x.

*Vard
- Secured a NOK2.7b contract for the design and construction of one luxury polar expedition cruise vessel for French cruise company PONANT.
- The hull will be built at Vard Tulcea in Romania, with delivery scheduled in 2Q21 from Vard Søviknes in Norway.
- Last traded at 0.82x P/B.

*ASTI
- Entered term sheet to dispose five of its wholly-owned subsidiaries (known as STI Group) to Shanghai Pudong Science and Technology, for $100m collectively.
- The sale price is subject to net debt and net working capital adjustments, and both parties have 60 days exclusivity period for negotiation.
- At $0.088, ASTI has a market cap of $60m and trades at 51.8x forward P/E and 0.93x P/B.

NEGATIVE NEWS
*China Sports International
- Received statutory demand from legal advisor RHT Corporate Advisory in relation to the group's outstanding professional fee of $0.051m.
- RHT may commence winding up proceedings against the group if it fails to pay the due payment within three weeks.

*First Ship Lease Trust
- In negotiations with lenders of its US$480m term syndicated loan facility to extend the maturity date by one year.
- The group currently has US$165.6m outstanding loan under the syndicated loan facility.
- While majority of the lenders have indicated their support for the extension, consensus from all lenders is required for the approval.
- Last traded at 0.19x P/B.

NEUTRAL NEWS
*Olam
- Issued 698,991 new shares in relation to a warrant exercise at US$1.09 each.
- 55m outstanding warrants remains, which expires on 29 Jan 2018.

SG Market (18 Dec 17)

MARKET OVERVIEW
- The market could trudge higher this week as key lawmakers pledged support for the US tax cut bill, bringing it a step closer for President Trump to sign it into law before Christmas.
- Technically, the STI sees downside support at 3,390, with upside resistance at 3,475.

SECTOR WATCH
*Property
- Developers moved 785 new homes in Nov (-8.7% y/y, +3.6% m/m) on fewer sale launches.
- Including ECs, 933 units were sold (-16% y/y, -3.7% m/m).
- The slower sales were in line with MKE expectations that developers would hold back launches in a bid to raise prices to maximise returns.
- We are Positive on the property developers and maintain UOL (TP: $9.80) as the top pick, along with City Dev (TP: $13.60), GuocoLand (TP: $2.90) and Bukit Sembawang (TP: $8.25).

*Banks
- MAS has introduced The Credit Limit Management Measure, which will take effect on 1 Jan 2018.
- The new rule to encourage financial prudence will cap additional unsecured credit for individuals whose outstanding unsecured debts exceed 6x monthly income.
- Impact is minimal as consumer credit formed less than 8.8% of total loans.
- MKE remains Neutral on the sector and prefer UOB (Buy, TP $27.10) over DBS (Hold, TP $22.75) and OCBC (Hold, TP $12.00).

POSITIVE NEWS
*SIA
- Nov group passenger load factor climbed to 80.7% (+3.5ppt) as traffic growth (+7.6%) outpaced capacity expansion (+3%).
- Cargo load factor rose 4ppt to 70.4% on higher traffic (+7.1%) due to improving regional demand.
- Subsidiary carriers SilkAir (+3.3ppt to 73.9%) and Scoot (+5.2ppt to 86.3%) also notched better load factors.
- Parent airline load factor rose 3.1ppt to 80%, on improvement across routes to East Asia (+4ppt), Americas (+3.3ppt), Europe (+1.9ppt), South West Pacific (+3.9ppt), West Asia and Africa (+1.6ppt).
- Last traded at 21.8x forward P/E and 0.92x P/B.

*Starhub
- Acquiring enterprise solutions provider D'Crypt for up to $122m, to enhance its capabilities in cyber security and Internet of Things.
- D' Çrypt engages in cryptographic technology and specialises in encrypted communications, high performance computing, secure IoT and vulnerability and threat analysis.
- It serves clients in the military, security and government sectors.
- The purchase will be conducted in 2 tranches - 65% stake by Feb '18 on milestone achievements and the remaining 35% in 1H21 upon meeting profitability thresholds.
- Trades at 17.9x forward P/E and offers 5.8% indicative yield.

*CapitaLand
- Serviced residence unit, The Ascott, has secured contracts to manage two properties in the heart of Accra in its first foray into Africa.
- The 220-unit Ascott 1 Oxford Street Accra will open in phases from 2019, while the 40-unit Kwarleyz Residence will open in 4Q 2018.
- Ascott added a record of over 21,000 units in 18 new cities across nine countries in 2017.

*Cityneon
- Entered a non-binding term sheet to acquire Scorpio East Properties from SGX-listed KOP for $2.9m.
- Scorpio East owns a leasehold property at 25 Tai Seng Ave with a lot area of 2,571 sqm.
- The group intends to use the building to expand its office space as a creative design suite, as well as derive rental revenue from remaining units.
- The group is also seeking future collaboration with KOP for its expansion in the entertainment and media industry.
- Upon completion, FY16 pro forma EPS is expected to rise 4.3% to 2.92¢.
- Separately, Cityneon signed a term sheet with South Korean firm Fabulous Inc to set up an interactive, exterior digital media signage board at Cityneon's Las Vegas Marvel's Avengers S.T.A.T.I.O.N. exhibition at Treasure Island.

NEGATIVE NEWS
*GKE
- To divest its entire 50% stake in JVCo Ocean Latitude for US$1.1m.
- The JVCo owns a liquefied gas carrier vessel and will be disposed due to the challenging operating environment.
- GKE's shareholder loan of US$4.4m will be repaid in four quarterly instalments upon completion.
- The group will incur a net loss of $6.9m from the divestment.
- Loss-making and trades at 0.75x P/B.

NEUTRAL NEWS
*Clearbridge Health
- Healthcare company will make its trading debut on SGX Catalist board at 9am today.
- IPO of 88m shares solely comprises a placement tranche at $0.28 each.
- Substantial investors include Coop International and two individuals.
- Net proceeds of $21.4m will be used for the expansion of its medical clinics business and group laboratory test unit, as well as for working capital purposes.

SG Market (15 Dec 17)

MARKET OVERVIEW
- Mounting worries of a delay on the US tax bill could cap any upside on the SG market, as profit-taking activity continues amid lower liquidity towards the end of the year.
- Technically, the STI is trading just above its near-term support at 3,430 (20-dma), with the next at 3,390. Upside resistance remains at 3,475.

SECTOR WATCH
*Telecom
- Over the past weeks the Apple Store order status for the iPhone X has gone from a 3-4 week wait to available for pick-up today.
- There has yet to be indications on incumbents' re-contracting efforts, and could be an upside risk to MKE's FY17E forecasts.
- Still, the negative view on the domestic telecom space is predicated on the thesis that the incumbents would become more aggressive with handset subsidies to re-contract postpaid subscribers before TPG Telecom gets off the ground.
- MKE has Sells on both M1 (TP $1.59) and StarHub (TP $2.17), with a Hold rating on Singtel (TP $3.87).

POSITIVE NEWS
*Frasers Commercial Trust (FCOT)
- 50:50 JV with Frasers Centrepoint to acquire Farnborough Business Park (FBP) in the UK for £174.6m.
- The 46.5 ha freehold business park in the west of London has a total net lettable area of 555,000 sf with WALE of 8.3 years and 98.1% occupancy.
- Accordingly, FCOT will expand its investment mandate to Europe, beyond existing markets Singapore and Australia.
- The REIT offers an indicative yield of 6.7% and trades at 0.9x P/B.

*Oxley
- Made three property acquisitions totalling $1.09b.
- Deals include a CBD commercial building Chevron House ($660m, or $2,526 psf), the collective sale of residential development Vista Park ($418m, or $1,096 psf ppr) and a stake in a residential project in Dong Nai province in Vietnam ($16.2m).
- Oxley trades at 1.81x P/B.

NEUTRAL NEWS
*TMC Education
- Mandatory unconditional cash offer at 6.75¢/share, following a management stake buyout of 51% by hotelier and property magnate Koh Wee Meng.
- The offer price is final and the offeror intends to maintain the listing of the education provider.
- Firm is loss-making and the offer price translates to 0.89x P/B.

*Zhongmin Baihui Retail
- Diluting its stake in a 51% JV which will operate and manage the retail component at Changsha Mingfa International City in China.
- Group formed a separate 48:52 JV with Chongqing Sasseur Outlets Commercial Management, to take over its earlier 51% stake for Rmb9.5m.
- The move reduces its effective stake to 24.5%.
- Operations at the 200,000 sqm gfa shopping centre is expected to commence by end-2018.
- Last traded at 14.8x trailing P/E.

*Viva Industrial Trust
- The right of first refusal granted by Kim Seng Holdings (KSH) to income-producing properties has ended, following its cessation as a shareholder in the REIT manager.
- Offers an attractive 7.9% indicative yield and valued at 1.2x P/B.

SG Market (14 Dec 17)

MARKET OVERVIEW
- The 25bps interest rate hike by the Fed was in line with expectations, while the dovish statement by Fed chief Janet Yellen could encourage some risk-taking in hopes of a stronger Capricorn effect.
- Technically, the STI is approaching the upper end of its uptrend channel at 3,475, with underlying support at 3,390.

SECTOR WATCH
*Property
- Collective sales maintain its strong momentum with hotly-contested tenders at two private residential developments Derby Court and Parkway Mansion.
- Derby Court saw a top bid of $73.9m ($1,390 psf ppr) from Roxy-Pacific, amongst seven bidders, 19% above owners' reserve price.
- Parkway Mansions' sale price of $147m ($1,536 psf ppr) was 6.5% above the guide price, and was sold to a consortium led by privately-owned Sustained Land.
- MKE maintains positive on the property developers and reiterates UOL (TP: $9.80) as its top pick, along with City Dev (TP: $13.60), GuocoLand (TP: $2.90) and Bukit Sembawang (TP: $8.25).

POSITIVE NEWS
*Singtel
- 36.5% owned Bharti Airtel is divesting 20% stake in wholly-owned pay TV operator Bharti Telemedia for US$350m to global PE firm Warburg Pincus.
- Bharti Telemedia is one of the largest direct-to-home paid TV service providers in India, with 14m subscribers and ~US$550m in annual revenue.
- The move frees up capital to bolster its balance sheet.
- Singtel offers 4.6% indicative yield and trades at 27.7x forward P/E.

*Roxy-Pacific
- Top bidder for the collective sale tender of freehold residential development Derby Court in Novena, Singapore, for $73.9m.
- The site has a land area of 18,506 sf and gross plot ratio of 2.872, which translates to $1,390 psf ppr.
- Trades at 1.3x P/B.

*SIIC Environment
- 91.2% owned subsidiary was awarded the HuangQiao Industrial BOT wasterwater treatment project in Taixin City, Jiangsu Province in China.
- The plant has a design capacity of 20,000 tpd and a base tariff of Rmb5.83/ton, with a concessionary period of 30 years.
- Project also includes a reclaimed water facility with a design capacity of 6,000 tpd and tariff of Rmb2.5/ton.
- The project will have an initial guaranteed minimum treatment volume of 17,000 tpd and subsequently increased to 20,000 tpd in the fourth year onwards.

*GSS Energy
- Struck oil in its Trembul operating area in Central Java, Indonesia.
- At a depth of 1,255 metres, eight columns of hydrocarbon (2 gas and 6 oil zones) bearing sandstone reservoir with 37m of total net pay zone were confirmed.
- Indo state-owned energy firm Pertamina, which holds an 11% economic interest in the site, has agreed to commence commercialisation of the gas zones.
- Management hopes to produce ~200 barrels of oil per day by 3Q18.
- Trades at 12.8x trailing P/E.

*CWG International
- 95.8%-owned Bluesky Parramatta is disposing a land plot at 14-20 Parkes Street Harris Park, Australia, for A$40m.
- Total land area of the plot is 2,878 sqm, with a plot ratio of 8:1.
- The sale would result in an estimated gain of A$9m.
- Trades at 3.8x trailing P/E and 0.64x P/B.

NEUTRAL NEWS
*Asiaphos
- Ceased operations at Feng Tai mine after its exploration licence expired on 12 Dec.
- The group has submitted an application for the licence renewal.

*Far East Group
- To dispose a warehouse and land located at 13th Mile Sungai Besi Road in Selangor, Malaysia, for RM11.5m.
- Upon completion, disposal gain of $2.5m is expected, with FY16 pro forma NTA/share to rise 12% to $0.2115.

*Olam
- Issued 264,642 new shares in relation to a warrant exercise at US$1.09 each.
- 55.7m outstanding warrants remains, which expires on 29 Jan 2018.

SG Market (13 Dec 17)

MARKET OVERVIEW
- Stock prices could nudge higher as Wall Street pushed to fresh records from banking gains but sentiment remained wary of the impending Fed rate hike tonight and signs of more tightening in 2018 as well as upcoming policy stance of ECB at a central bank meeting on Thu.
- Technically, the STI is approaching the upper end of its uptrend channel at 3,475, with underlying support at 3,390.

MACRO WATCH
*Economy
- Retail sales dipped 0.1% (est: +1%) in Oct, marking its second straight decline in seven months, on weaker takings from computer & telecom equipment (-23.4%) and food retailers (-3.9%).
- Stripping out motor vehicles, consumer spending grew a slower 0.8% against 3.3% expansion in Sep.
- Bright spots were in supermarkets (+7.2%), which bodes well for Dairy Farm and Sheng Siong.

CORPORATE RESULTS
*Vibrant Group
- 2QFY18 net profit plunged 60% to $3.6m due to a higher cost base from the consolidation of Blackgold Int'l as well as absence of disposal gain and lower fair value gains.
- Revenue surged 284% to $172.7m lifted by the acquisition, but gross margin shrank 22.4ppt to 11.6% amid markedly lower profitability at the new commodity logistics and trading entity.
- Bottom line was also dragged by lower associate contribution of $1.1m (-71%)'following the disposal of property investment arm Plaza Ventures in Apr '17.
- Trades at 2.1x trailing P/E and 0.6x P/B.

POSITIVE NEWS
*Vard
- Appeal for the Brazilian tax claim has been upheld by the authorities and the long-standing overhang is now over.
- The NOK200m claim dated since Aug '14 relates to transfer pricing of goods and services delivered from the group's Norwegian entities to Vard Niterói in FY10.
- No provision had been made for the tax claim. Thus the decision will not have any impact on its financials.
- Counter is loss-making and last traded at 0.81x P/B.

*Ley Choon
- Secured new contract worth $19.6m from PUB for the supply and laying of steel potable water pipelines around Singapore.
- Project to commence in 2018 for a 24-month period.
- Last traded at 2.4x trailing P/E and 1.28x P/B.

*TA Corp
- Awarded main contract worth $180m by JTC for building development.
- Contract period lasts 28 months and work is slated to commence by 26 Dec.
- Loss-making and trades at 0.61x P/B.

NEUTRAL NEWS
*Lippo Malls Trust
- Granted an extension of master leases over certain areas of Lippo Mall Kemang (carpark, casual leasing space and Avenue of the Stars) to three lessees for two years to 16 Dec '19.
- Trades at 8.3% indicative yield and 1.17x P/B.

*Datapulse
- Acquired Wayco Manufacturing, a Malaysian-based producer of haircare, cosmetics and other homecare chemical products, for $3.5m.
- The consideration translates to an annualised 1H17 P/E of 32.9x and 1.39x P/B.
- Wayco owns three production facilities in Johor Bahru and Selangor and the acquisition will enable the group to diversify into the beauty/wellness industry.
- Post-acquisition, pro forma FY17 EPS is expected to rise 3.6% to 1.43¢.
- Continuing operations are loss-making and trades at 1.45x P/B.

*Jubilee Industries
- Acquiring a 70% stake in Honfoong Plastic Industries for $3.5m via $1m cash and 55.6m new shares at 4.5¢ each.
- Honfoong manufactures plastic moulding, PCB assembly, tooling finishing and plastic precision engineering parts.
- Adding the 93 plastic injection machines from Hanfoong's plant in Batam to the 32 new machines at its Johor Baru facilities, the group plans to expand its production capacity from 26 units currently to 150 in FY3/18.

*Delong
- Received Rmb160m from People's Government of Laiyuan County for the cessation of operations of Laiyuan County Aoyu Steel, as part of China's effort to reduce capacity in steelmaking.
- The compensation is part of the Rmb968m consideration due, with the outstanding amount at Rmb600m.
- Trades at 1x trailing P/E and 0.31x P/B.

SG Market (12 Dec 17)

MARKET OVERVIEW
- Market might take cue from fresh record gains on Wall Street as investors position in banks ahead of the impending Fed rate hike tomorrow.
- Technically, the next resistance for the STI is at 3,550, with 3,390 as the underlying support.

POSITIVE NEWS
*Keppel Corp
- Secured projects from repeat customers, Petrobras and SOFEC, worth a combined value of $130m.
- Works include installation of equipment and cables for the hull of FPSO P-69, as well as fabrication of a turret mooring system for a newbuild FLNG vessel.
- Last traded at 15.9x forward P/E.

*China Everbright Water
- Won the bid for the Rmb70m Dezhou waste water pipeline network BOT project in Shandong, China, with concession period of 22 years.
- This is the first public-private-partnership project implemented by Lingcheng district government.
- Trades at 12.9x forward P/E.

*KSH/ Lian Beng
- 48%/ 42% owned Development 24 is acquiring 12 freehold properties at Lorong 24 Geylang Singapore for $60m.
- The properties are sited on 26,188 sf of land area and can be redeveloped into an 8-storey residential project with max gfa of 73,325 sf.
- KSH trades at 10.6x forward P/E, while Lian Beng is valued at 7.1x trailing P/E.

*Oxley
- Purchasing all eight freehold residential units at 21 Meyappa Chettiar Road in Singapore for $21.5m.
- The group intends to redevelop the property that is sited on residential land area of 898.1 sqm.
- Trades at 11.2x forward P/E and 1.78x P/B.

*TEE Intl
- Awarded new engineering contracts worth $65m between Sep and Nov '17.
- Works include sub-contracts from Dragages Singapore for the air-conditioning and mechanical ventilation system and building management system, as well as electrical works for the commercial development at Market Street, slated to be completed by end-2020.
- This brought total outstanding order book to $318m.

*MindChamps
- Signed a master franchise agreement with Myanmar firm Passion Capital Venture (PCV).
- PCV intends to launch 10 MindChamps PreSchool centres and five MindChamps Reading Centres with the first centre expected to be completed in Yangon in Aug '18.

*Sapphire Corp
- Secured three new rail transit contracts worth Rmb280m in Chengdu.
- Projects include construction of two tunnels of close to 3km, as well as certain open cut earthworks worth Rmb253m, and the supervision of construction across 25km of tracks worth Rmb27m.
- Projects are slated to complete between 31 Dec 2018 and 31 Dec 2020.
- Order book remained unchanged at Rmb3.4b.
- Last traded at 7.4x trailing P/E.

*First Ship Lease Trust
- Sold 14-year old containership FSL Santos for US$6.2m, netting a disposal gain of US$0.8m.
- Net proceeds will be used to repay outstanding debt.
- Loss-making and valued at 0.18x P/B.

NEUTRAL NEWS
*SingHaiyi
- Acquring 3.45% of stapled securities in ASX-listed Cromwell Property Group (CPG) for A$59.1m.
- CPG is the sponsor of SGX-listed Cromwell European REIT, of which SingHaiyi's non-executive director, Gordon Tang, and managing director, Celine Tang, also hold a combined 13.9% interest.
- Pro forma FY3/17 EPS is expected to rise 14.4% to 1.24¢.

*Top Global
- Acquired 32.5% stake in 5Footway Founders for $0.8m, raising its total stake to 83.75%.
- The target is in the business of hospitality management for hostels, hotels, and service apartments across China, Japan, and Singapore.
- Loss-making and trades at 0.29x P/B.

*Progen
- Proposed a 2-for-1 renounceable non-underwritten rights issue at $0.045 each (36.6% discount to last close).
- Maximum net proceeds of $5.9m earmarked to finance the redevelopment of recently-acquired land at 17 Balmoral Road and working capital.

*Asia Fashion
- Proposed 1-for-1 renounceable non-underwritten rights issue at $0.112 each (6.7% discount to last close).
- Maximum net proceeds of $9.4m intended for potential projects or investments and working capital.

SG Market (11 Dec 17)

MARKET OVERVIEW
- Market could track Wall Street higher following a solid US payrolls report, which cemented prospects for a third Fed rate hike on Wed.
- This would likely continue to support the rally in bank shares. Other key events to watch include the policy meetings of BoE and ECB this week.
- Technically, overhead resistance for STI lies at 3,460, with 3,390 providing the underlying support.

POSITIVE NEWS
*ComfortDelGro
- To acquire 51% stake in Uber's car rental subsidiary Lion City Rentals (LCR) in Singapore for $295m.
- The consideration values the target at around 0.9x P/B, based on an NAV of $642m, made out of 12,450 vehicles.
- LCR has a fleet of 14,000 private vehicles and Comfort has agreed to pay for more vehicles when utilisation increases.
- This is expected to enable the group's taxi drivers to receive ride requests on Uber's app, while the ride-hailing company may benefit from the group's fleet management capabilities.
- Comfort last traded at 13.2x FY18e P/E, and offers dividend yield of 5.7%.
- MKE reiterates Buy, with TP of $2.40.

*City Dev
- Raised offer price for Millenium & Copthorne Hotels (M&C) by 12% to £6.20, valuing the hotel group at £2,014m, 0.76x P/B.
- City Dev has committed not to sell or repurpose any of its hotels for at least 3 years (prior: 1 year).
- Offer is conditional on securing acceptance from more than half of the shares not owned by the group. Group has plans to delist M&C.
- MKE views the offer favourably, as it would improve recurring income, and allow City Dev to increase stake in an asset rich company with latent value that can be unlocked in the medium term.
- The house reiterates Buy with TP of $13.80.

*Centurion
- 36m new shares offered at HK$3.18 apiece for a dual listing in Hong Kong attracted strong investor demand.
- The public tranche of 6m shares was 18.76x subscribed, while the remaining placement tranche was also oversubscribed.
- Trading on the HK stock exchange is expected to start on 12 Dec '17 (Tue), 9.30am.

NEUTRAL NEWS
*Oxley
- Soft opening of Mercure Singapore on Stevens, located near Scotts Road and Orchard Road shopping belts.
- Mecure Singapore on Stevens is next to its sister hotel Novotel Singapore, and comprises of 518 guestrooms.
- The development of the two hotels marks Oxley's maiden venture into hotel development.

*Halcyon Agri
- Entered into a conditional agreement to acquire 80% stake of a crumb factory in Bintan, Indonesia, for an undisclosed amount.
- However, the 80% stake has a NAV of US$0.6m as at 31 Dec '16.
- The crumb factory has a licensed capacity of 60,000 cubic metric tonnes per annum and is an approved supplier to major tyre manufacturers including Goodyear, Bridgestone, Cooper Tires and Michelin.

*Asia Fashion
- Terminated its proposed placement of 145m new shares at HK$0.90 each as the group is reconsidering other funding options.

SG Market (08 Dec 17)

MARKET OVERVIEW
- Market could stay soft on profit-taking and lack of fresh impetus ahead of a key US jobs report.
- Technically, the STI is struggling near 3,390 with next level of support at 3,340, while short term resistance is re-calibrated at 3,420.

CORPORATE RESULTS
*Stamford Tyres
- 2QFY18 net profit grew 10.4% to $1.6m, on higher revenue of $59m (+2.3%) due to improved sales in Australia and SE Asia markets.
- Gross margin held steady at 26.1% (2QFY17: 26%).
- Bottom line was partially pared by FX loss of $0.5m (2QFY17: $0.7m gain) and higher operating lease rental (+21.4%), but mitigated by stronger JV contribution of $0.8m (+82.7%) and lower tax (-24.5%).
- Last traded at 9.1x trailing P/E.

POSITIVE NEWS
*Halcyon Agri
- Acquiring four Indonesian crumb rubber factories in West Kalimantan for $105.3m.
- The factories produce various grades of Standard Indonesian Rubber and have an annual capacity of 132,000 tonnes.
- The deal will raise Halcyon's total processing capacity to 1.55m tonnes p.a, propelling it to be the largest crumb rubber producer and exporter in Indonesia.
- Trades at 5.5x trailing P/E.

*CSC Holdings
- Secured foundation contracts for Kim Chuan Depot Extension and Keppel MRT station and its associated tunnels, on Circle Line 6.
- The new projects are slated to be completed by early-2019 and mid-2019, respectively.
- This brought aggregate value of transport infrastructure contracts secured to more than $70m, since the start of FY3/18.
- Loss-making and trades at 0.46x P/B.

NEGATIVE NEWS
*Ellipsiz
- Discussions between controlling shareholder Bevrian and an undisclosed third party, involving a possible share transaction has fallen through.
- Trades at 16.2x trailing P/E and 0.98x P/B.

NEUTRAL NEWS
*CapitaLand
- Partnering EBD in a $10m training and tech programme to upskill staff and develop technology-enablers.
- The innovation push will focus on data analytics, digital marketing, digital product management.
- MKE last had a Hold rating and TP $3.75.

*Noble Group
- Plans to sell Noble Americas ethanol unit to Mercuria for US$20m.
- This will result in a book loss of US$60.3m and reduce pro forma 9M17 NAV/share to US$0.75 from US$0.80.
- Valuations are meaningless as the group is loss-making and book cost of assets appear inflated.

*Straits Trading
- Acquiring an 11-storey office building at 45 St Georges Terrace, Perth, Australia, for A$54.2m ($55.7m).
- The property in Perth CBD is well-positioned to benefit from the rejuvenation of the city centre.
- Last traded at 15.1x trailing P/E and 0.68x P/B.

*ESR REIT
- Completed the divestment of 23 Woodlands Terrace for $17.7m or 2.8% above its book value as at 31 Dec.
- Offers 6.9% indicative yield and trades at 0.9x P/B.

*Geo Energy
- Lifted moratorium on 117m consideration shares (8.8% share capital) owned by International Resources Investment, which was previously issued in relation to the acquisition of Fortune Coal Resources.
- The move is to enable the vendor to collateralise the shares for other investments and businesses.
- Initial moratorium period was supposed to run until 23 Jun '20.
- Trades at 4.7x forward P/E.

*Miyoshi
- Acquiring an industrial strata unit located at Tradehub 21 for $1.5m.
- The double-storey terrace factory has a built-in area of 2,927sf and will used as its corporate office, following the sale of 5 Second Chin Bee Road.
- Trades at 15.3x trailing P/E.

*Neo Group
- 51%-owned Gourmetz has expanded into canteen operation, on top of food catering for the childcare and elderly care market.
- Trades at 23.7x forward P/E.

*Hoe Leong
- Granted moratorium to halt any creditor action against the group and its relevant subsidiaries, with the effect till 31 Jul '18 and 31 Jan '18 respectively. (

SG Market (07 Dec 17)

MARKET OVERVIEW
- Market may see more profit-taking after Nov's strong rally, weighed by major US policy shift to recognise Jerusalem as Israel's capital, while investors await new details on the final tax bill from Congress.
- Following yesterday's 1.2% decline, underlying support for STI lies at 3,390 with overhead resistance remaining at 3,420.

POSITIVE NEWS
*SGX
- Achieved higher Nov securities turnover of $28.5b (+3% y/y, +19% m/m), with daily average of $1.3b (-3% y/y, +13% m/m).
- Total derivatives volume rose to 18m contracts (+9% y/y, +21% m/m), while commodities derivatives volume totalled 1.4m contracts (+42% y/y, +9% m/m).
- There were three new mainboard and two Catalist listings raising a total of $1.55b and 80 new bond listings raising $30b.
- Trading at 21.6x forward P/E and 3.7% dividend yield.

*Sembcorp Marine
- Secured a US$490m EPC contract from Statoil Petroleum for a newbuild FPSO's hull and living quarters.
- The contract is scheduled for completion in 1Q20.
- Excluding the nine rigs sold to Borr Drilling for $1.77b, this brings its ytd order flow to $932m.

*Cityneon
- Will mark its 11th Marvel Avengers S.T.A.T.I.O.N exhibition when its third travelling set embarks on a tour to Norrköping, Sweden from Jun till Aug '18 after its stop in Moscow, Russia.
- Currently trades at 15.2x forward P/E.

*Japfa
- Day-old chick (DOC) and broiler chicken prices saw a sequential m/m rebound although y/y prices are still mixed.
- Nov ASPs of broiler and DOC hit Rp17,295 (+10.6% y/y, +11.7% m/m) and Rp4,445 (-6.3% y/y, +9.8% m/m) respectively.
- Price action might be due to recent culling efforts by the government to bring down supply levels.
- Trading at 8.3x forward P/E.

*Samurai 2K Aerosol
- Awarded the sole and exclusive distributorship of its products to Genesis GD in Cambodia till Apr '19, subject to renewal on a yearly basis.
- The move follows success in Indonesia, Malaysia, Thailand, Vietnam and Philippines.

NEUTRAL NEWS
*First Sponsor/City Developments
- To partner Tai Tak to acquire the 300-room Le Meridien Frankfurt Hotel in Germany for €85.0 million (S$135.9 million).
- First Sponsor will hold a 50% stake while City Dev and Tai Tak will hold a 25%-stake each in the partnership.
- The hotel currently has a lease expiry date of 31 May 2050 with a renewal option of five years. The partners are hoping to leverage on an inflow of business travellers following Brexit.
- MKE last had a Buy and TP of $13.60 on CIT, which is currently trading at 15% discount to RNAV.

*Delong
- To acquire a 60% stake in Xingtai Degui Nano Material Technology from Guo Zhimin for Rmb6m.
- The firm is involved in the trading of limestone and lime and performs R&D on nanocalcium carbonate. It is currently constructing two production plants in Xingtai, China, which would have a combined annual lime processing capacity of 0.4m tonnes.
- The acquisition will ensure stable supply of limestone or lime and reduce cost of raw materials for its steel production.

*CSC
- Reached an out-of-court settlement with China Construction (CC) in relation to a $4.7m suit claiming wrongful cancellation of a piling subcontract.

*Interra Resources
- 60% owned Goldpetrol Joint Operating is acquiring 11 patents from Chengdu North Petroleum Exploration & Development Technology for US$5.8m.
- The patents will be used to acquire production capabilities in order to enhance oil production in the Chauk and Yenangyaung field in Myanmar.

SG Market (06 Dec 17)

MARKET OVERVIEW
- Stock prices are expected to drift amid a lack of fresh leads as traders close off their positions in typically quiet year end trading.
- Recent price action on the STI suggests the index has reached a near-term top and could consolidate lower towards the underlying support at 3,390, while topside resistance remains at 3,460.

SECTOR WATCH
*Property
- Two 99-year leasehold sites on the reserve list of the Government Land Sales programme were snapped up.
- Frasers Centrepoint beat 9 other bidders for the former Zouk site at Jiak Kim Street with an aggressive bid of $955.4m, or $1,732.55 psf ppr, topping the Martin Modern site won by GuocoLand in Jun last year by 40%.
- Allgreen Holdings trumped 6 others to a residential plot at Fourth Avenue in Bukit Timah with a top bid of $553m or $1,540 psr ppr.
- MKE remains bullish on property developers and tags UOL (TP $9.80) as its top pick, along with City Dev (TP $13.60) and GuocoLand (TP $2.90).

CORPORATE RESULTS
*Del Monte
- Swung into 2QFY18 net loss of US$2.8m (2QFY17: US$20m profit), dragged by one-off expenses arising from shutdowns and divestment of $13.1m.
- Excluding the one-offs, net profit of US$10.2m (2QFY17: US$20.8m) still missed estimates.
- Revenue dipped 1.8% to US$624.7m on weaker sale in US due to unfavourable pricing in foodservice and USDA.
- Gross margin shrank to 20.6% (-2.5ppt) due to higher trade promotion spending, while underlying EBITDA slumped 26.7% to US$52.2m from higher capex spending.
- Expects to remain profitable for 2HFY18 on a recurring basis.
- Trades at 13.1x forward P/E.

POSITIVE NEWS
*Sembcorp Marine
- Signed a Letter of Intent with Shell for the construction of hull and topside as well as the integration of the Vito floating production unit.
- Final contract award will be dependent on Shell and its partners the sanctioning of the project.
- Last traded at 43.4x FY18 P/E.

*Mapletree Logistics Trust
- To divest warehouse Senai-UPS in Johor, Malaysia for Rm28m ($9.2m), 37% premium over the latest valuation as at 31 Oct '17.
- The property has a gfa of 11,494 sqm and was under-occupied at 51% since early-2015.
- Offers 5.3% indicative yield and valued at 1.24x P/B.

*Heeton
- To dispose commercial investment property, The Woodgrove, for $55.9m.
- The property with a strata floor area of 5,144 sqm has an unexpired lease term of 78 years.
- Net gain upon disposal of $22m is expected to lift pro forma EPS to 10.95¢ from 3.84¢.
- Trades at 3.2 trailing P/E and 0.46x P/B.

*Hupsteel
- Received Letter of Award for the redevelopment of freehold property at 38 Genting Lane.
- The site with land area of 2,103sqm will be redeveloped into an 8-storey industrial building with a gfa of 5,259 sqm.
- Project cost is estimated at $9.3m and construction will take 24 months to complete.
- Last traded at 19.8x trailing P/E and 0.65x P/B.

*Lippo Malls Trust
- National Land Authority has extended the strata ownership titles for four units at Mall WTC Matahari for 20 years until Apr '38.
- Offers 8.3% indicative yield and valued at 1.17x P/B.

*Q&M
- Established a $500m multicurrency debt issuance programme.
- Net proceeds arising from the programme will be used for general corporate purposes, including M&A, refinancing of borrowings and working capital and capex requirements.
- Trades at 31.3x forward P/E.

NEGATIVE NEWS
*Alliance Mineral Assets
- Updated that 40m shares (7.2% share capital) belonging to CEO Tjandra Pramoko and his wife were seized on court order, following non-payment of a $5.5m personal debt owed to Jonathan Lim Keng Hock.
- This is the second time shares have been seized following the first incident in Jul '17, and would create a major overhang in the stock.
- Separately, group announced positive exploration results at Bald Hill Project, its joint project with Tawana Resources.

*Debao Property Development
- A subsidiary received a winding-up petition, presented by Gabungan Tiasa to Malaysia High Court, in relation to Rm14.6m allegedly owed.
- Petition is scheduled for case management and hearing on 12 Dec '17 and 25 Jan '18.

SG Market (05 Dec 17)

MARKET OVERVIEW
- Strong signs of broader-based growth in the manufacturing sector and heightened probability of a US tax bill could provide some support to recent market weakness.
- Technically, underlying support for the STI lies at 3,390, with overhead resistance at 3,460.

MACRO WATCH
*Economy
- Nov PMI came in at 52.9, up from 52.6 in previous month, marking its 15th consecutive month of expansion in manufacturing and highest reading since Dec '09.
- The key leading indicator was fuelled by higher factory activity across most sectors.
- Upbeat data lends credence to Maybank KE's bullish view of the economy, which is anticipated to grow 3.4% in 2017, surpassing the official GDP growth forecast of 2-3% range.

POSITIVE NEWS
*Trendlines
- Portfolio company, Magdent, raised US$1.75m from three angel investors.
- Magdent developed a technology that uses electromagnetic fields to stimulate, accelerate and improve bone formation and quality, and to prevent bone infection, leading to more successful dental implant procedures.
- Trades at 12.1x forward P/E and 0.71x P/B.

*Amplefield
- Entered into a VND417.8b ($24.8m) contract with Sing Viet City to undertake earthworks on a 63.8 ha land in Ho Chi Minh City.
- Works expected to commence in Dec and be completed by Sep '18.
- Controlling shareholder Yap Teiong Choo owns 97% of Sing Viet City.
- The loss-making group trades at 0.41x P/B.

NEGATIVE NEWS
*New SGX Watchlist entrants:
- Interra Resources
- ISR Capital
- Global Yellow Pages

NEUTRAL NEWS
*Q&M
- Disposed Q&M Medical Aesthetic & Laser Centre to Dr Li Jingxiang for $0.24m.
- Net liability of the entity was $1.42m as at Sep '17.
- Trades at 31.3x forward P/E.

*Hong Leong Asia
- Completed the disposal of Rex Plastics at reduced price of RM7.54m (from RM10.8m).
- This was due to changes arising from inventory stock.
- The loss-making group trades at 0.62x P/B.

*Lian Beng/KSH Holdings
- Acquired 42% stake in Development 24 from KSH for $0.42m, or 1x P/B.
- Development 24 is engaged in property development and investment holding.

*CWG Int'l
- Incorporated three 60% owned subsidiaries for the purpose of holding specific property development projects.

*Indiabulls Properties Trust
- Exercised its right of compulsory acquisition after it received 99.66% acceptances following its voluntary conditional cash offer at $0.90/unit.

*China Great Land
- Seeking shareholders' approval on expanding its core business to include environmental solutions.
- Management believes that the diversification could enable the group to tap in a new market and boost its income stream.
- The proposal arose from increasing awareness of the negative impact of pollution in China, as well as a weak core business in concrete piles due to the challenging operating environment.

SG Market (04 Nov 17)

MARKET OVERVIEW
- Investors may start the week on a cautious note on fresh US political concerns, after ex-national security adviser is reported to testify that President Trump has directed him to make contact with Russians during the 2016 election campaign.
- Technically, STI sees underlying support at 3,390, with topside resistance at 3,460.

SECTOR WATCH
*Property
- Enbloc wave continues following the purchase of two separate freehold sites in Bukit Timah by Allgreen Properties.
- Both collective sale tenders at Royalville and Crystal Tower were competitive, sold at $477.4m ($1,960 psf ppr) and $180.7m ($1,840 psf ppr), respectively.
- MKE maintains positive on the property developers and reiterates UOL (TP: $9.80) as its top pick, along with City Dev (TP: $13.60) and GuocoLand (TP: $2.90).

POSITIVE NEWS
*SGX
- 19 IPOs in the first 11 months this year have raised $4.6b, twice the amount in 2016.
- The listings added $8.3b in market cap to the bourse, compared to the 16 firms that added $4.4b last year.
- SGX last traded at 21.7x forward P/E, an attractive 54% discount to peer HK Exchanges & Clearing.

*Roxy-Pacific
- Acquiring a freehold commercial and retail building in Melbourne CBD for A$33m.
- The six-storey property with net lettable area of 4,504 sqm will be redeveloped into a mixed-use development comprising hotel and retail units.
- Last traded at 18.6x trailing P/E and 1.27x P/B.

*Boustead Projects
- Clinched a contract from Ballore Logistics Singapore for the design and build of a five-storey ramp-up eco-sustainable logistics facility in Singapore.
- Construction for the new building is expected to complete in 2019.
- This marks the fourth logistics project secured in FY3/18 and raises order book to $300m from $242m on 27 Nov '17.
- Trades at 7.8x forward P/E.

*Vard
- Secured contracts worth an aggregate NOK700m for the design and construction of seven stern trawlers.
- Delivery for the vessels scheduled between 1Q19 and 4Q19.
- Counter is loss-making and trades at 0.83x P/B.

NEUTRAL NEWS
*Thai Beverage
- Completed the acquisition of 252 KFC stores in Thailand, as well as the properties and assets used for operations for Bt11.4b.
- The acquisition is part of the group's strategy to expand into food business.
- Last traded at 20.4x forward P/E.

*Sing Post
- Introduced higher rates for international small packets delivery services.
- The increase will come into effect in 2018 and is due to higher rates charged by the UN agency that sets the rules for international mail exchanges among its 192 member countries.
- The new rates reflect rising volumes of e-commerce packets and the higher cost of delivery.
- Last traded at 25.6x forward P/E.

*G. K. Goh
- Interest in associate Habitat Assets has been diluted to 36.09% from 37.66%, as the latter issued 4.8m new redeemable preference shares to a third party for A$4.8m.
- Trades at 8.5x trailing P/E and 0.86x P/B.

*Soilbuild REIT
- Received claim on insurance guarantee amounting to $1.7m, equivalent to around four months' rent from a tenant NK Ingredients.

SG Market (01 Dec 17)

MARKET OVERVIEW
- The market could be buoyed by the record Wall Street close as the US Senate is set to vote on a tax reform bill, while OPEC and its allies agreed to a further extension till end-2018 for oil production cuts.
- Technically, underlying support for the STI remains at 3,390, with topside resistance at 3,460.

SECTOR WATCH
*Banks
- Oct loans expanded 6.8% to $649.6b (Sep: +6.2%), bringing 10M17 loans growth to 6%.
- Growth was spurred by increased loans to businesses of 9% (Sep: +8%) and consumer of 3.8% (Sep: +3.6%).
- Positive loan momentum should be sustained as the economy picks up and on improved buying sentiment in the Singapore property market.
- Maybank KE maintains Neutral on Singapore banks with preference for UOB (Buy, TP: $27.10), followed by DBS (Hold, TP: $22.75) and OCBC (Hold, TP: $12.00).

*Property
- MAS flags risks from excessive exuberance in the property market, following the en-bloc rage and rising land prices.
- Concerns stem from a potential supply-demand mismatch, with anticipated new supply from government land sales sites to outstrip demand from slower population growth in the next 1-2 years.
- MKE is positive on the sector with preference for UOL (Buy, TP: $9.85), City Dev (Buy, TP: $13.80) and GuocoLand (Buy, TP: $2.90).

POSITIVE NEWS
*AEM
- Received sales orders worth $76m for delivery in 1H18.
- As a gauge for end-Nov '16, the group received sales orders worth $53m for delivery in 1H17.
- Last traded at 7.9x forward P/E.

*Citic Envirotech
- 34.9% owned Jiangyin Longyun Wastewater Treatment acquired an industrial transfer-operate-transfer wastewater treatment plant in Jiangyin City, Jiangsu Province in China, for Rmb25.8m.
- The 15-year service concession project has a capacity of 10,000m3/day.
- Last traded at 16.6x forward P/E.

*SIIC Environment
- Proposed two acquisitions which will lift treatment capacity for new projects secured to-date by 28% to 787,500 tpd.
1) 75.5% owned SIIC Environment Holdings (Weifang) to spend Rmb108.5m to acquire Dalian Ziguang Water Treatment, in charge of the Tiger Beach water treatment project in Dalian, China, and is currently upgrading its capacity by 12.5% to 90,000 tpd, and from grade 1B to 1A.
2) SIIC will also make a Rmb97m acquisition for an effective 86.5% stake in Dalian Ziguang Lingshui Waste Water Treatment that is in charge of the Lingshui River treatment project, currently upgrading its capacity by 33% to 80,000 tpd, and from grade 1B to 1A.
- Trades at 11.8x forward P/E.

*Golden Energy and Resources
- Investing A$67.86m to subscribe for a 10% stake in ASX-listed Westgold Resources
- The investment will help the group gain exposure to the counter-cyclical gold mining sector in Australia.
- Last traded at 9.6x trailing P/E.

NEGATIVE NEWS
*Duty Free Intl
- Received bills of demand from Royal Malaysian Customs of Perak, demanding aggregate payment of RM41.6m including custom and excise duties, sales taxes and GST.
- The demand stems from non-compliance of a duty-free shop located at the border of Perintah Tetap Kastam Bil 55.
- Group and its advisors believe there is no legal basis and will be defending against the allegations.
- Separately, substantial shareholder Heinemann Asia Pacific exercised the second tranche of its call option for €9.85m, to acquire an additional 5% in key operating subsidiary, DFZ Capital, to 15%.
- Trades at 15.8x forward P/E.

NEUTRAL NEWS
*STI
- FTSE Russell announced that there will be no changes to STI constituents in the Dec '17 quarterly review.
- STI reserve list, ranked according market cap, comprises Venture, Suntec REIT, Mapletree Commercial Trust, Keppel REIT, and Sembcorp Marine.
- Next review will take place in Mar '18.

*Oxley
- Included on the FTSE ST Large & Mid Cap Index and the FTSE ST Mid Cap Index.
- Trades at 10.8x forward P/E.

*Olam
- Issued 589,589 new shares in relation to a warrant exercise at US$1.09 each.
- 57m outstanding warrants remains, which expires on 29 Jan 2018.
- Trades at 16x forward P/E and 1.33x P/B.

*Marco Polo
- Singapore Court has approved the group's restructuring plan, which calls for a write-off on $258m in debts, and $60m fresh equity injection.
- Following the approval and sanction orders, Marco Polo will now need to seek shareholders' approval.

SG Market (30 Nov 17)

MARKET OVERVIEW
- Trading in the market could be muted ahead of OPEC's decision on another extension to its output curb agreement, and a widely anticipated US tax reform vote later today.
- Technically, STI sees underlying support at 3,390, with topside resistance at 3,460.

POSITIVE NEWS
*Chip Eng Seng
- Acquiring 245-room Mercure & Ibis Styles Grosvenor Hotel in Adelaide, Australia, and adjoining commercial properties at 72 and 74-78 Hindley Street, for A$43m.
- This lifts its rapidly growing hospitality portfolio to four, of which two are in Australia.
- Last traded at 16.8x forward P/E.

*Cosco Shipping Intl Singapore
- 51% owned Cosco Shipyard delivered a 9,785 dwt subsea support vessel to Maersk Supply Service AS.
- The vessel, MAERSK INVOLVER, measures 11 meters high, 27 meters wide, and 137m long.
- Counter is loss-making and valued at 4.4x P/B.

*Soilbuild Construction
- Awarded contract in Myanmar worth US$3.9m ($5.3m) for civil work and superstructure work of a food service distribution centre in Thilawa Special Economic Zone.
- The project is expected to commence in Dec and is slated to complete within 7 months.
- This brought order book to $508m (3Q17: $502.7m).
- Trades at 16.8x forward P/E.

*Acromec
- Secured a $7.5m contract to construct an integrated laboratory facility for a biopharmaceutical MNC.
- Project involves consolidating various existing laboratories with a new laboratory which requires highly stringent industry standards.
- The facility is located at Science Park, Singapore, with a gross lettable area of 3,100 sqm.
- Project is slated to complete by 30 Apr '18.
- Loss-making and trades at 3.9x P/B.

*Azeus Systems
- Secured a HK$15m (US$1.9m) project from the Hong Kong government to carry out platform migration works for a critical database system in a key government agency.
- Works are expected to commence in Nov '17 and be completed over the next 13 months, followed by a six-month nursing period.
- This lifted contract value secured year-to-date to HK$127.9m (US$16.4m).
- Loss-making and last traded at 0.9x P/B.

*Thakral Corp.
- 50% owned Thakral Japan Properties invested in two Japanese properties in Osaka.
- First is R Hotel Inn Kita Umeda, a 120-room business hotel in the heart of the city.
- Second is Namba retail redevelopment site, with gross area of 237 sqm and development plans for a 3-storey retail building, which has been pre-leased to a retail chain in Japan.
- Construction for the second property is expected to commence in Mar '18, and complete within a year.
- Last traded at 1.8x trailing P/E.

NEUTRAL NEWS
*SGX
- Proposed improvements to back-end clearing and settlement processes, shortening settlement cycle to two days from three days and eliminating time lag between money and securities settlement.
- The bourse aim to introduce the changes by 2H18.
- Trades at 21.5x forward P/E.

*Keppel T&T
- Undertaking a strategic review of its China logistics portfolio.
- In relation, group appointed Evercore Asia (Singapore) as its financial adviser for the review.
- Trades at 16.5x forward P/E and 1.11x P/B.

*Fraser Centrepoint
- Entered into a conditional agreement to acquire 94.8% of German company, greenfield Logistikpark Freiberg GmbH, for €32.44m.
- The firm holds freehold interest in a new logistics warehouse located in industrial estate Logistikpark Freiberg, Baden-Württemberg in Germany.
- It has a gross lettable area of 21,071 sqm and is leased on a long-term basis to be used as a warehousing facility for a leading company in the automotive industry.
- Trades at 10.6x forward P/E.

*Thai Bev
- Acquired 49% stake in Vietnam F&B Alliance Investment for 98m dong from a third party shareholder.
- The company was incorporated on 27 Sep for the purpose of management consultancy and investment holdings activities.
- Last traded at 20.7x forward P/E.

*Wilmar / Perennial Real Estate
- Wilmar acquired 51.7m Perennial shares at $0.8808 apiece, 4.2% above last closing price, raising its stake to 20% from 16.89%.
- The vendor was Wilmar co-founder and deputy chairman Martua Sitorus, whose stake in Perennial was pared to 3.32% from 6.42%.

*No Signboard
- F&B operator will make its trading debut on Catalist board at 9am today.
- IPO of 65.7m shares, comprising 63.2m placement and 2.5m public shares, at $0.28 each were 23.6x subscribed.
- Cornerstone investors include Lion Global Investors, JPMorgan Asset Management and Asian Opportunities Absolute Return Master Fund.
- Net proceeds of $18.7m will be used to build a new brewery in Indonesia, grow its Draft Denmark beer brand, as well as to open two Chinese casual dining restaurants.
- At $0.28, the counter is valued at FY16 P/E of 16.6x.

*Cromwell European REIT
- Trading debut at 12pm today for the European REIT with a portfolio across industrial, commercial and retail properties.
- IPO of 428.5m units, comprising 392.2m placement and 36.7m public units, at €0.55 each.
- The public tranche was 3.1x subscribed but no figure was disclosed for its placement tranche.
- Notable investors consist of DBS Bank (Treasury investments), Temasek-back SeaTown Master Fund and UBS Asset Management (HK), while cornerstone investors include Cerberus.
- Total proceeds will be used to acquire 60 properties across Denmark, France, Germany and the Netherlands from the four funds managed by Cromwell Property, and 14 Italian properties from independent third parties.
- At €0.55, the REIT offers projected FY18/19 distribution yield of 7.8%/8%, and P/B at 1.04.

*First REIT
- Extended the build-operate-transfer agreement for the land on which Siloam Hospitals Kupang & Lippo Plaza Kupang are located from 25 years to 30 years till 12 May 2041 for $5m.
- Offers 6.3% indicative yield and valued at 1.37x P/B.

SG Market (29 Nov 17)

MARKET OVERVIEW
- Positive sentiment could spill over to the SG market following approval to advance the US tax bill by the Senate Budget Committee. This brings the bill a step closer to a floor vote, expected to take place on Thu.
- The STI sees immediate upside resistance at 3,460, with underlying support at 3,390.

CORPORATE RESULTS
*Keong Hong
- 4QFY17 net profit leapt 213.5% to $53.4m, shored by a $49.8m revaluation gain.
- Revenue soared 70.9% to $97.7m on increased construction revenue from existing projects and variation orders, as well as final billings for completed projects.
- However, gross margin shrank 5.9ppts to 11.6% on higher cost of sales (+83.2%).
- Order book shrank to $344m (FY16: $351m).
- Lowered final DPS to 1.75¢ (4Q16: 3¢), bringing FY17 total DPS to 2¢ (FY16: 8¢)
- Trades at 2x trailing P/E.

POSITIVE NEWS
*CapitaLand Retail China Trust (CRCT)/ CapitaLand
- Formed a 51:49 JV to acquire shopping mall Rock Square in Guangzhou, China, at market value of Rmb3.36b ($688.9m).
- The five-storey mall with NLA of 53,107 sqm has committed occupancy of 96.4%.
- To fund the deal, CRCT issued 64.4m new units at $1.612 and raised aggregate gross proceeds of $103.8m.
- CRCT's pro-forma FY16 DPU is expected to dip 0.3% to 10.02¢, implying a distribution yield of 6%.

*Lian Beng
- Won a $136.8m contract from UVD Projects to develop a condominium.
- Contract period is for 38 months and works will commence in Dec '17.
- Group expects the new contract to contribute positively to FY5/18 results.
- Construction order book lifted to $836m (Aug '17: $661m).
- Last traded at 7.5x trailing P/E.

*Jumbo
- Opened its fifth Jumbo Seafood outlet in China, located in downtown Shanghai at the upscale L'Avenue Mall in Hongqiao.
- The outlet has a floor space of 820 sqm and seating capacity of 212 pax.
- Last traded at 20.9x forward P/E.

*Wee Hur
- Acquiring a 1,038 sqm freehold site with an existing heritage building at 183-189 A'Beckett Street, Melbourne, Australia, for A$35m.
- Group plans to redevelop the property into a 900-bed purpose-built student accommodation, as the location is just a 10-minute walk away from Uni. of Melbourne, and Royal Melbourne Institute of Technology.
- Construction expected to commence in 4Q18.
- Trades at 17.9x trailing P/E.

*Centurion
- Successfully closed its private fund, Centurion US Student Housing Fund, with an aggregate committed capital of US$89.5m and has been fully drawn down.
- The fund was raised to acquire 6 student accommodation in the US to mainly cater to first-tier universities.
- The proposed acquisition is slated to complete by end-2017 and will be accretive to earnings.
- The fund marks Centurion's maiden foray into the US and is in line its asset-light strategy.
- Last traded at 9.7x forward P/E.

NEGATIVE NEWS
*Noble
- In another attack, Iceberg Research cited that Noble's balance sheet is still unreliable, despite making billions in impairment.
- An open letter to the commodity trader's creditors warned that Noble's restructuring plan would not work as the group will continue to burn cash, and does not address the fundamental weakness that led to its collapse.
- Further, Iceberg requested creditors to further investigate Noble's recent $25m investment in Toronto-listed Mkango Resources, given its market cap of $11.6m and seemingly residential premise as its head office.
- Separately, Noble proposed a sale of four dry bulkers just slightly above book cost at US$95m.
- The counter last traded at 0.15x P/B.

NEUTRAL NEWS
*Sabana REIT
- Entered into a facility agreement with UOB for a $30m secured four-year term loan facility.
- The loan facility will be utilised to repay existing borrowings and for working capital purposes.
- Offers 7.7% yield and valued at 0.72x P/B.

SG Market (28 Nov 17)

MARKET OVERVIEW
- Oil-related counters will be in focus over the next two days ahead of the OPEC meeting in Vienna this Thu, with the oil production alliance anticipated to announce its decision whether to extend production cuts beyond Mar '18.
- Technically, underlying support for the STI is at 3,390, with topside resistance at 3,460.

CORPORATE RESULTS
*IHH Healthcare
- 3Q17 missed as net profit slumped 53% to RM82.1m, bringing 9M17 core net profit to RM413.4m (-36%), dragged by start-up costs and depreciation from the opening of two new hospitals.
- However, quarter's revenue grew 15% to RM2.8b on organic growth from existing operations and ramp-up of recently-opened hospitals, as well as new contributions from Tokuda and City Clinic in Bulgaria.
- EBITDA margin narrowed 2.3ppt to 20.1% on higher start-up, operating and staff expenses.
- MKE believes start-up costs, particularly at Gleneagles HK, have stabilised and new hospitals are gaining traction on patient visits.
- Hence, the house has upgraded to a BUY with higher TP of RM6.30 from RM6.08.

*Cogent Holdings
- 3Q17 net profit slipped 6% to $7.4m, bringing 9M17 earnings of $23.7m (+1%) to 73% of estimates.
- Quarter's revenue climbed 4% to $35.3m on higher volume handled within the container depot and transportation segments.
- But, operating margin narrowed 1.7ppt to 28.1% amid a shift in sales mix towards the lower margin container segment and higher fuel costs.
- Bottom line was also dragged by higher taxes (+14%).
- Stock supported by buy-out offer price of $1.02.
- NAV/share at $0.2823.

POSITIVE NEWS
*Ying Li
- Proposed divestment of Ying Li International Commercial Centre project in Chongqing to China Evergrande Group for Rmb3.29b ($672m).
- The consideration includes the transfer of a separate land parcel that Ying Li is still in progress of acquiring.
- The 320,000 sqm gfa mixed development is located in Chongqing's CBD of Jiefangbei and is priced at 2.04x P/B.
- Proceeds earmarked to pursue new ventures and/or investment opportunities in Tier 1 and fast-growing Tier 2 cities in China.
- Upon completion, Ying Li will net a disposal gain of Rmb343m ($70m) and pro forma NTA/share is expected to jump 6.6% to Rmb2.09.
- Trades at pro forma P/B of 0.35x.

*Boustead Projects
- Secured two contracts from repeat clients worth $67m.
- The first contract involves the design and building of a logistics facility in Singapore, slated to complete by 2019.
- Second contract requires the design and building of a power solutions manufacturing facility expansion in Vietnam, with expected completion in 2018.
- Group's order book lifted to $242m from $175m as at 8 Nov '17.
- Last traded at 7.8x forward P/E.

*Vard
- Secured contracts from Nowegian food producer Cermaq Norway for the design and construction of two offshore fish farming operation platforms.
- The platforms are scheduled for delivery in 2Q and 3Q18.
- Counter is loss-making and trades at 0.8x P/B.

*UnUsUal/ Imperium Crown
- Imperium signed non-binding MOU with concert & entertainment event organiser UnUsUal, to commence discussions on possible collaborations for the former's Wonder Stone Park (WSP).
- Imperium has a 50-year operating right to WSP, as well as a hotel in the park, which is located in commercial precinct in Feixian County, Linyi City, Shandong, China.

NEUTRAL NEWS
*Soilbuild REIT
- Expanding investment mandate from being Singapore-centric to business space and industrial properties in Australia.
- Offers indicative yield of 8.6% and trades at 0.9x P/B.

*Wilmar
- Converting a portion of its existing revolving credit facility of US$150m with ING Bank into a sustainability performance-linked loan.
- If performance milestones across environmental, social and governance aspects are met, interest rate for the loan will be reduced in the following year.
- Progress on the milestones will be measured by Sustainalytics.
- Last traded at 13.7x forward P/E and 0.96x P/B.

*Samurai 2K Aerosol
- Proposed placement of 10m new shares (9.1% enlarged share capital) at $1.008 apiece to placement agent UOB Kay Hian.
- Net proceeds of $9.6m are intended for business development and expansion.
- Pro-forma 1HFY3/18 EPS would be reduced by 9% to 5.86sen.

*QT Vascular
- Entered into an agreement with four individual bondholders to partially repay a sum of US$1.36m in cash and shares.
- These bondholders will accept a cash payment of US$0.34m and 42.2m new shares at an issue price of 1.08¢.
- The remaining outstanding amount of US$1.02m will be payable by 31 Jan 2018, bearing interest of 8% p.a from 1 Oct 2017.
- The group will continue to negotiate for settlement with other bondholders holding the remaining par value of US$2.555m.

SG Market (27 Nov 17)

MARKET OVERVIEW
- The market may gyrate within range, as investors monitor global markets for fresh directional cues including US Black Friday weekend retail sales, extension of OPEC production cut (30 Nov), and ongoing deleveraging concerns in China.
- Technically, underlying support for the STI is at 3,390, with topside resistance at 3,460.

CORPORATE RESULTS
*Jumbo
- FY17 results missed as net profit slipped 6.7% to $14.5m, as expenses rose at a faster pace from business expansion.
- Revenue grew 6.1% to $145.1m on increased contributions across Singapore and China outlets.
- Gross margin held steady at 63.3% (+0.1ppt).
- Bottom line was also weighed by lower government grants from a reduced wage credit scheme payout.
- Lowered final DPS to 0.5¢ (FY16: 1¢), but maintained special DPS of 0.7¢, bringing full-year payout to 1.7¢ (unch).
- Trades at 19.3x forward P/E.

*Kimly
- 4QFY17 underlying net profit slipped 2% to $5m, dragging FY17 earnings to $21.4m (-12%).
- Full-year revenue rose 11.6% to $192.1m on increased takings from coffee shops, drinks and food stalls, as well as sub-leasing of stalls and cleaning services provided.
- Gross margin dipped 1.6ppt to 20% amid higher staff costs and lease expenses for the newer coffee shops and food stalls.
- Bottom line was also hurt by lower government subsidies for wages, higher interest costs and a spike in taxes following a corporate restructuring for its recent IPO.
- Declared final DPS of 0.68¢, bringing full-year payout to 0.96¢ (FY16: nil).
- Trading at 18.4x trailing P/E.

POSITIVE NEWS
*Health Management International (HMI)
- Issued 16.9m new shares at $0.65 each to Temasek-backed Heliconia via a private placement.
- The issue price is 3% discount to last closing price of $0.67 and the placement represents 2% stake in the enlarged share capital of HMI.
- The group hopes to leverage on Heliconia's network and has earmarked net proceeds of $11m for business expansion and growing its existing operation.
- Trades at 28.4x forward P/E.

*Federal International
- Secured contract worth US$3.3m for the charter of its 1,200 HP land drilling rig.
- The rig will be deployed for drilling of six wells in Gn Parakasak Field, Banten Province in Indonesia.
- The charter period of the rig for each well is 50 days, and is expected to commence in Apr 2018.
- Trades at 8.8x trailing P/E and 0.7x P/B.

*TTJ
- Secured new contracts and lifted its total order book from $152m (as at 25 Sep) to $170m.
- New contracts are mainly from existing clients involving the supply, fabrication and installation of structural steelworks to various projects.
- Last traded at 11.8x trailing P/E.

NEUTRAL NEWS
*ST Engineering
- The JV between ST Aerospace resources and Wings Capital Partners has been wound up.
- To recap, the termination of JV was announced back in Aug 2015 and was due to differing views on strategic focus and operational plans.
- Trades at 20.9x forward P/E.

*Keppel Infrastructure Trust
- Undertaking a strategic review of its interest in Basslink undersea electricity and telecommunications interconnector between Tasmania and mainland Australia (Victoria).
- The Basslink interconnector is owned and operated by KIT, and has a 25-year term Basslink Services Agreement with an entity of the State of Tasmania since Apr '06.
- Since Jul '09, the Basslink telecommunications network has also provided wholesale telecommunications services between Hobart, Tasmania and Melbourne through the Basslink interconnector.
- Offers indicative yield of 6.5% and 1.89x P/B.

*Noble Group
- Proposed disposal of Noble Americas South Bend Ethanol (NASBE) for ~US$17m.
- Long-stop date for the deal on 13 Dec '17.
- NASBE owns and operates an ethanol production plant in South Bend, Indiana in US.
- Upon completion, pro forma NTA/share will be reduced 6.3% to US$0.75, implying P/B valuation of 0.17x.

*Sabana REIT
- Updated that talks with ESR-REIT has ended.
- Moving forward, the REIT will focus on three key initiatives to improve performance:
1) Rejuvenate portfolio through selective divestments and active asset management;
2) Renewal of senior leadership;
3) Enhancing the Board of Directors;
- At $0.43, REIT offers annualised 3Q17 yield of 7.3% and trades at 0.75x P/B.

*Tiong Seng
- Completed its acquisition of Sloane Court Hotel and an adjoining site at Balmoral Road.
- To recap, the sites, with an area of 3,617.9sm and gross plot ratio of 1.6, was acquired at $80.5m and will be redeveloped into a 12 storey condominium consisting of 80 units.
- Trades at 6.95x trailing P/E.

*Sri Trang
- Acquired a production line of medical examination gloves and industrial gloves in Surat Thani province for Bt840m.
- The line has a capacity of producing 2,000m pieces of gloves per year and the acquisition is slated to complete by 2Q18.
- The acquisition is aiming to serve the growing global demand for medical and industrial gloves.

SG Market (24 Nov 17)

MARKET OVERVIEW
- Reduced liquidity and profit-taking activity ahead of the weekend could lead to a dip on the STI, particularly after deleveraging concerns in China unsettled investors in Asia yesterday.
- Technically, underlying support for the STI is at 3,390, with topside resistance at 3,460.

CORPORATE RESULTS
*Thai Beverage
- FY17 core earnings climbed 4.6% to Bt26.2b, in line with expectations.
- Revenue was flat at Bt190b as improved sales in spirits (+2.6%) were doused by weakness in beer (-4.7%) and non-alcoholic beverages (-0.9%) segments.
- Core EBITDA margin widened to 19.3% (+0.7ppt) amid a turnaround in the non-alcoholic beverages segment to positive EBITDA margin of 1.2% (FY16: -4.1%).
- Headline net profit jumped 38% to Bt34.5b, mainly boosted by fair value gain arising from its stake in Vinamilk.
- Raised final DPS to Bt0.47 (4QFY16: Bt0.40), bringing full-year payout to Bt0.67 (FY16: Bt0.60).
- Trades at 19.9x forward P/E.

NEGATIVE NEWS
*Natural Cool
- To dispose a property with land area of 2,091.5 sqm at 38 Lok Yang Way for $4.2m.
- The property was previously used for operations prior to the relocation of manufacturing activities to Malaysia.
- The sale will incur a disposal loss of $1.95m, while net proceeds of $4.1m will be used to reduce bank borrowings.
- Last traded at 0.89x P/B.

*Dukang Distillers
- Expects a significant decrease in production by 60%-70% for 2QFY18 and 3QFY18.
- This is due to targeted stop-work orders from the government amid the winter-heating season, to cut emissions of industrial pollutants in various industries.
- Baijiu production is expected to gradually recover from 15 Mar '18.

NEUTRAL NEWS
*Keppel Corp
- Entered conditional JV agreement with KPN Land to acquire two prime sites in Bangkok's CBD for Bt2.2b ($90m).
- Subsequently, the 49:51 JV partners plan to develop two premium freehold condominiums projects with an estimated total cost of $233m.
- Construction for both developments is expected to commence around 3Q18.
- Trades at 16.1x forward P/E.

*MindChamps
- Trading debut at 9am today for the operator and franchisor of premium preschool centres.
- IPO of 30.45m shares, comprising 28.45m placement and 2m public shares, at $0.83 each were 21.4x subscribed (excluding reserved shares of 2.4m).
- Notable investors with >5% enlarged share base include ICH Capital, Island Asset Management, JF Asset Management and SUTL Holdings, while cornerstone investors include CFCG Investment Partners, Hillhouse Funds and Target Asset Management.
- IPO net proceeds of $46.2m will be used to fund expansion plans, partial repayment of an acquisition loan and working capital.
- At $0.83, the counter trades at a pro forma FY16 P/E of 32.2x.

*Ascendas India Trust
- Proposed acquisition of six warehouses at the Arshiya Free Trade Warehousing Zone near Mumbai, India, for $112.5m.
- The warehouses with total leasable area of 832,249 sf have a future redevelopment potential of 2.8m sf.
- Properties are close to full occupancy, with tenants that include DHL Logistics, Huawei and Cisco Systems.
- Upon completion, pro forma FY3/17 DPU is expected to rise 3.5% to 5.89¢, implying distribution yield of 5.1%.

*Olam
- Issued 524,847 new shares in relation to a warrant exercise at US$1.09 each.
- 57.7m outstanding warrants remains, which expires on 29 Jan 2018.
- Last traded at 15.7x forward P/E and 1.3x P/B.

*ValueMax
- Injected an additional $1m in subsidiary ValueMax Pawnshop (JP), lifting its paid-up capital to $5m.
- Trades at 0.94x P/B.

*QT Vascular
- Issued 21.6m new shares to GEM Global at $0.0108 each, representing a 10% discount to last closing price of $0.012.
- Fund raised will be used for working capital purpose.

*Fuji Offset Plate Manufacturing
- To sell a vacant industrial land in Taman Gembira, Johor Bahru in Malaysia, for RM3.5m (1.59x P/B)
- The sale is expected to net disposal gain of $0.4m.

SG Market (23 Nov 17)

MARKET OVERVIEW
- Market sentiment could be buoyed by firmer oil prices and dovish FOMC minutes.
- Additionally, Singapore's economy outperformed in 3Q with GDP growth of 5.2% (est: 5%), which prompted an upgrade to the official full-year growth forecast to 3-3.5%, from 2-3% previously.
- Technically, topside resistance for STI is seen at 3,460, with underlying support now at 3,390.

SECTOR WATCH
*Telco
- New entrant MyRepublic is targeting to launch its mobile services in 1Q18, although a slight delay from its year-end launch previously.
- This adds to increased competition in the domestic mobile space, which will also see the entry of TPG in the coming months.
- MKE has a NEGATIVE view on the sector with Singtel (HOLD, TP $3.87) as its preferred pick, with SELLs on StarHub (TP $2.17) and M1 (TP $1.59).

CORPORATE RESULTS
*Sen Yue
- Turned around to FY9/17 net profit of $2.2m (FY16: $0.9m loss), partially helped by a $2m drop in FX loss.
- Revenue jumped 36% to $207.2m, as stronger commodities segment was driven by higher sales demand from China, while other business segments were stable.
- Gross margin widened 0.5ppt to 8.3% on cost control measures.
- Trades at 13.4x trailing P/E.

POSITIVE NEWS
*Hong Leong Asia
- 40.2% owned China Yuchai received its first order from Beijing Automotive Group (BAIC) for 600 units of YC4Y20 engines.
- The engines will be used to power BAIC's Beiqi B40L SUVs that will be launched in China in Jan '18.
- Last traded at 0.7x P/B.

NEGATIVE NEWS
*Profit warnings
- Acromec
- LHN
- MS Holdings

*Mary Chia
- Will not be proceeding with a further appeal against the court's decision on its dismissal order, over a lawsuit filed by JV partner Slim Beauty House.
- Accordingly, costs adding up to $0.7m will be incurred, which is expected to have a material impact on FY3/18 earnings.

NEUTRAL NEWS
*AIMS AMP Capital Industrial REIT
- 42.1m new units will be issued at the low end of its asking price range at $1.305 apiece.
- Given the strong demand, the upsize option was triggered and the offer size was raised from $50m to $55m.
- Net proceeds of $53.4m will be used for debt repayment and future expansion opportunities.
- Offers 5.3% indicative yield.
- MKE last had a BUY with TP of $1.60.

*Chip Eng Seng
- Entered into a 70:30 JV with Sirona Lyall Street to acquire two properties in South Perth, Australia, for A$10.9m.
- The adjoining properties located at 31 Labouchere Road and 24 Lyall Street have an aggregate site area of 2,024 sqm, and will be redeveloped into a mixed use development.
- Last traded at 17x forward P/E and 0.76x P/B.

*Pavillon Holdings
- Entered into an equity transfer agreement with Inner Mongolia Jiangmeng Culture and Arts to sell 40% stake in Tianjin Binhai New Area Changjiang Cultural Assets Trading Center for Rmb4.1m.
- Net proceed of $0.8m received will be used for working capital, strategic investment or acquisitions.

SG Market (22 Nov 17)

MARKET OVERVIEW
- The market could continue on its upward move as investors position into banks, property developers and tech manufacturers, ahead of the anticipated positive release for the 3Q final GDP data tomorrow.
- Technically, topside resistance for STI is seen at 3,460, with underlying support now at 3,390.

POSITIVE NEWS
*Keppel Corp
- 24.5% owned PT Purimas Straits Resort will divest a 20.5ha site in West Bali's Tanah Lot district.
- The divestment will result in a net divestment gain of $17.6m, which is slated to complete by end-2017.
- Trades at 15.9x forward P/E.

*Viva Industrial Trust
- Singapore centric business park and industrial property trust will be included in the MSCI Singapore Small Cap Index as of the close of 30 Nov.
- Offers 7.44% indicative yield and trades at 1.27x P/B.
- MKE has a BUY with TP of $1.00.

NEGATIVE NEWS
*Envictus
- Warned of a FY17 net loss as operating losses were exacerbated by a full impairment of RM32.9m for its investment in Yamada Green Resources.
- Last traded at 0.43x P/B.

*Swing Media
- High Court of the Hong Kong Special Administrative Region has ordered the group to wind up.
- The official receiver of Hong Kong Special Administrative Region will be constituted as the provisional liquidator of the company.
- Counter has been suspended since 11 Jul.

NEUTRAL NEWS
*Sembcorp Industries
- To acquire an additional 3.7% stake in Vietnam Singapore Industrial Park (VSIP) for US$6.9m, lifting its stake from 92.9% to 96.6%.
- VSIP represents the Singapore consortium which holds a 51% stake in Vietnam Singapore Industrial Park JVCo, the developer of industrial park projects in Vietnam.
- Trades at 15.1x forward P/E.

*AIMS AMP REIT
- Launched private placement of new units between $1.305 and $1.345 each.
- Proceeds to be used mainly to repay debt and for asset enhancement initiatives.
- Offers 7.3% yield and trades at 1.03x P/B.
- MKE last had a BUY with TP of $1.60.

*Lum Chang
- Completed its collective acquisition of freehold residential property One Tree Hill Gardens for $65m, or a land rate of $1,664 psf.
- The 39,063 sf site could be redeveloped into 10 semi-detached homes plus three bungalows.
- Last traded at 7.2x trailing P/E.

*Olam
- Issued 994,919 new shares in relation to a warrant exercise at US$1.09 each.
- 58.2m outstanding warrants remains, which expires on 29 Jan 2018.
- Last traded at 15.7x forward P/E.

*Gallant Venture
- To issue 513m new shares (10.63% of issued share capital) to three placees at $0.133 each.
- Net proceeds of $68.2m intended to fund business expansion and working capital.
- Trades at 15.8x trailing P/E.

*Singapore Kitchen Equipment
- Proposed placement of 5m new shares (3.33% enlarged share capital) at $0.20 apiece to Ascapia Capital.
- Ascapia Capital is a fund backed by Asian family offices and high net worth individuals, and it focuses on investment in emerging Asian countries.
- Net proceeds of $0.98m earmarked for business expansion and working capital.
- Trades at 9.8x trailing P/E.

*Raffles United
- Established a 51% owned subsidiary, PT Radiant Thompson Indonesia (RTI), with a paid-up capital of Rp2.5b.
- RTI will be in the business of trading in bearing products in Indonesia.

SG Market (21 Nov 17)

MARKET OVERVIEW
- Economists' upward revisions on the 3Q final GDP estimate ahead of its release this Thu could lift the STI higher, anticipating that the domestic economy is growing at its fastest pace over more than three years.
- Technically, the STI could test the immediate topside resistance at 3,390, while underlying support remains at 3,320.

POSITIVE NEWS
*ST Engineering
- Awarded a 15-year contract by Gulf Air, Bahrain's national carrier, to provide MRO services for its new fleet of Boeing 787 aircraft.
- Last traded at 21.1x forward P/E.

*Yanlord
- Sold out all 636 apartment units at Oasis New Island Gardens Phase 3 in Nanjing on the first day of its sales launch.
- Contracted pre-sales of Rmb2.59b was derived from the launch for the 72,000 sqm gfa sold at an average Rmb36,000 psm.
- This will add to the group's total pre-sales pending recognition of Rmb24.68b as at 30 Sep '17.
- Last traded at 0.75x P/B.

*Wilmar
- To purchase edible oil facilities in Kuantan, Malaysia, from Cargill for an undisclosed amount.
- The acquisition includes a palm oil refinery and a neighbouring storage facility, and would strengthen Wilmar's sales and distribution network in Malaysia and serve as a strategic location for regional exports.
- Transfer of ownership is expected to occur by end-2018.
- Last traded at 13.5x forward P/E and 0.95x P/B.

*DeClout
- To collaborate with early stage venture capital Gobi Singapore to accelerate the growth of Southeast Asian start-ups in their portfolios.
- Gobi Singapore has been an active VC in the region with a portfolio of 42 companies across Southeast Asia, ranging from seed to growth stage investments.
- The strategic partnership with Gobi will allow portfolio companies to achieve their optimal potential through incubation and fund-raising facilitation capabilities.
- Trades at 38.7x trailing P/E.

*Cheung Woh Technologies
- Proposed disposal of 31.34% stake in Jiangsu Tysan Precision Engineering (JTPE) for Rmb68m ($13.95m), or 0.94x P/B.
- The sale of stake in the Chinese firm that manufactures seat recliners and seat tract adjusters comes amid apparent intensifying competition in the Chinese automotive industry.

*Ezion
- Obtained majority vote in favour of Ezion's proposal to push out maturity dates and reduce coupon rates on notes issued under the $1.5b multicurrency debt issuance programme.
- The positive development will pave the way for lenders to approve a six-year refinancing deal to bolster balance sheet for the group.

NEGATIVE NEWS
*New Wave Holdings
- Updated that it did not receive any bids at the close of the public tender exercise for the en-bloc sale of Jalan Besar Plaza.
- But, there was a letter dated 10 Nov '17 from a developer expressing interest to acquire the property.
- The collective sale committee of the property still has 10 weeks to enter into a private contract.
- Trades at 13.9x trailing P/E.

*Attilan
- Court has granted the group to convene a meeting with its scheme creditors by 28 Feb 2018.
- No action or proceeding shall continue or commence against the group until 31 Mar 2018.
- The counter has been suspended since 12 Jun.

NEUTRAL NEWS
*Poh Tiong Choon
- The consortium led by the group's chairman has received 90.17% valid acceptances for its $1.30/share buyout offer.
- Accordingly, the offeror will exercise its right to compulsorily acquire all the remaining shares.

*TSH Corporation
- Seeking SGX's approval for a further extension of time to enter into a definitive agreement for proposed acquisition by 28 Feb 2018.
- To recap, the acquisition consists of four freehold commercial properties located in Brisbane, Australia, for a total amount of A$13.2m.

SG Market (20 Nov 17)

MARKET OVERVIEW
- The market is likely to stay range-bound ahead of the slew of macro data to be released this week, including the US FOMC meeting minutes and UK budget statement on Wed, as well as the domestic official 3Q GDP this Thu.
- Technically, the STI could test the immediate topside resistance at 3,390, while underlying support remains at 3,320.

MACRO WATCH
*Economy
- PM Lee cited the Singapore economy could expand by more than 3% this year, above the 2-3% official forecast range.
- The buoyant economy is looking up, underpinned by low unemployment rates and higher wages, as well as improved productivity.

POSITIVE NEWS
*Jardine C&C
- Acquired an additional 16.5m (1.1% share capital) Vinamilk shares via the market.
- This lifted Jardine C&C's stake to 10%.
- The acquisition is in line with the group's strategy to increase its exposure in Vietnam.
- Last traded at 14.5x forward P/E.

*AusGroup
- Existing JV with Meisei Industrial has been awarded a A$67m contract extension by JKC Australia LNG.
- Trades at 3.6x trailing P/E.

*Enviro-Hub
- To sell 51% owned F2S1 Investments to PE fund Gaw Capital Partners for $342m.
- Upon completion, net proceeds will be used to pare outstanding borrowings from $430.9m to $130.1m, with pro forma gearing reduced from 4.49x to 1.36x.
- Last traded at 0.83x P/B.

*TA Corp
- 80% owned TK Modular received in-principle acceptance from Building and Construction Authority (BCA) to use its steel prefabricated prefinished volumetric construction (PPVC) system for building projects in Singapore.
- BCA encourages the use of PPVC to speed up construction and productivity in terms of labour and time saving.

NEGATIVE NEWS
*StarHub
- CEO Tan Tong Hai is stepping down from his position, effective from 1 May 2018, amid pressure in the domestic telecom sector.
- StarHub is in the process of searching for a new CEO globally.
- Current price offers an indicative yield of 6% and implies 17.4x forward P/E.
- MKE last had a Sell with TP of $2.17.

*Olam
- Disclosed that its free float will fall below 10% to 9.31%, following the exercise of 91.3m warrants into new shares at $1.09.
- There are 59.2m similar warrants remaining and can be exercised by 29 Jan '18. Assuming all are exercised, Olam's free float is expected to be back above 10%.
- Under SGX ruling, the regulator could suspend trading when the public float falls below the 10% mark. If that occurs, SGX may allow Olam to restore the float to the minimum threshold in a period of three months or longer.
- Trading at 15.6x forward P/E and 1.3x P/B.

*TT International
- Scheme creditors have agreed to extend its due payments to 18 Feb 2018.
- The counter has been suspended since 4 Aug.

*Hoe Leong
- Malayan Banking has made a claim against Hoe Leong in Singapore High Court in relation to a sum of $0.4m owed by the group.
- Last traded at 1.54x P/B.

NEUTRAL NEWS
*GuocoLand
*GuocoLand
- Undertaking an internal restructuring exercise to consolidate certain hotels under the group to promote business efficacy and enhance synergy.
- One hotel in Singapore (Sofitel Singapore City Centre) and two hotels in Malaysia (Thistle Johor Bahru and Thistle Port Dickson) will be consolidated under a wholly-owned business unit, GuocoLand Hotels.
- The group will have to pay an aggregate RM224m to acquire the two hotels in Malaysia as they are held under GuocoLand Malaysia. - Effective stake in the Johor hotel will be raised to 70%, while Port Dickson will be up to 100%.
- Maybank KE last had a Buy with TP of 2.90.

*Noble Group
- To acquire 49% stake in rare earths project, Songwe Hill, undertaken by Toronto-listed Mkango Resources for £14m ($25m).
- The proposed investment will bolster the group's position in the rare earths sector both upstream and downstream.
- Last traded at 0.31x P/B.

*TIH
- Updated that the discussion on a potential transaction that would involve the change in control of the company is still on-going.
- Last traded at 0.98x P/B.

*Arion Entertainment
- Entered into non-binding MOU to acquire certain cyber security assets from Bio-Nexus.
- Israel based Bio-Nexus is engaged in the development, manufacture and design of mobile workflow engine data transmission in a mobile environment.
- Discussions are on-going and yet to be materialised.
- Counter is loss-making and trades at 3.54x P/B.

SG Market (17 Nov 17)

MARKET OVERVIEW
- The market could recoup some losses after a 5-day losing streak as Wall Street cheered the House passage of Trump's tax cut bill.
- Technically, underlying support for the STI lies at 3,320 with upside resistance at 3,390.

SECTOR WATCH
*Property
- MKE stays Positive on the property sector even after its strong 30% ytd rally. We believe the sector is in the early stages of a recovery and recent share-price weakness on the back of profit-taking should be an opportunity to raise exposure.
- Three things to watch for the next potential leg up are 1) RNAV upgrades from accretive land deals; 2) lower home vacancies; and 3) a recovery in residential rents, with tailwinds stemming from accelerated enbloc demolitions.
- Top picks are UOL (TP: $9.85), City Dev (TP: $13.80) and GuocoLand (TP: $2.90).

POSITIVE NEWS
*Genting Hong Kong
- Disposing 5m Norwegian Cruise Line shares via a secondary public offering.
- The sale would raise US$270.1m and result in a US$57.4m gain.
- Upon completion of deal, the group's stake in NCL would be reduced to 5.64% from 7.83%.
- Last traded at 0.45x P/B

*Talkmed
- Entered three-year management and license agreements with Beijing New Hope Hospital (BNH) to provide management services for the Singapore Cancer Centre clinic at Beijing Parkway Jingshun Hospital and other oncology medical services set up by BNH in China.
- Management fee will be 4% of the clinic's EBITDA.
- License fee will be 1.5% of clinic's net revenue.
- Trades at 28.8x forward P/E.

*Pollux Properties
- Completed the acquisition of Pollux Alpha Investment (PAI) from Pollux Holdings for $145m.
- To recap, PAI is a property investment company, which owns several commercial and residential properties located in prime locations in Singapore, including the iconic MacDonald House in Orchard Road.
- The acquisition would enable the group to expand its investment portfolio and have a greater financial capacity to seek opportunities in Singapore and the region.
- Last traded at 0.49x P/B.

*Hatten Land
- Acquired two land parcels in Klebang, Melaka, for a combined RM108.6m
- The two integrated projects is near to new township developments, and will expand the group's land asset portfolio to seven integrated mixed-use developments and a retail mail.
- Acquisition will be funded via an issue of 140.16m shares at $0.25 each (29% premium to last close).
- Post-completion, pro forma NTA/share will increase to RM0.2213 from RM0.165.
- Trades at 7.7x forward P/E.

NEUTRAL NEWS
*Spackman Entertainment
- Invested KRW250m ($309,000) for a 20% stake in The Makers Studio, a South Korean film production company.
- The start-up firm was set up by three Korean entertainment industry veterans and has plans to produce and release four films in 2018-2020.

*Nam Cheong
- Application by key subsidiaries to restructure their debts under a scheme of arrangement has been granted by High Court of Malaysia.
- The group has been ordered to convene a meeting between Nam Cheong Dockyard and Nam Cheong Int'l and their respective creditors to consider and approve the scheme of arrangement within 90 days from 15 Nov 2017.
- The shipbuilder has suspended trading since 21 Jul 2017.

*HL Global
- Agreed with Natural Apex to extend the current long-stop date for the disposal of LKN Investment from 16 Nov to 23 Nov.
- Trades at 76.9x trailing P/E.

*Raffles Education
- Oei Hong Leong and Oei Hong Leong Art Museum have withdrawn their requisition notice to oust the group's founder, chairman and chief executive Chew Hua Seng.
- The loss-making group is trading at 0.59x P/B.

*Amplefield
- Proposed a renounceable non-underwritten 3-for-1 rights issue at $0.05 each, attached with two detachable warrants with exercise price of $0.05 apiece.
- Maximum proceeds from the rights of $51.3m will be used to repay debt of $22.6m and for working capital purposes.

SG Market (16 Nov 17)

MARKET OVERVIEW
- The market has begaun its long overdue correction as investors take profit after the corporate earnings season and head into the year-end lull period.
- Oil stocks could come under pressure as crude prices tumbled overnight after a US oil inventory report showed higher production and IEA cut its forecast for crude demand next year.
- Technically, the STI could consolidate towards the underlying support at 3,355, with topside resistance at 3,460.

SECTOR WATCH
*Property
- Developers sold 758 units in Oct (-40% y/y, +15% m/m) due to fewer sale launches.
- Including ECs, 969 new homes were sold (-37% y/y, +7% m/m).
- The slower sales is in line with Maybank KE expectations as developers hold back on launches in a bid to raise prices to maximise returns.
- The house remains positive on the property developers. Preferred picks are City Dev (TP $13.60), UOL (TP $9.80) and GuocoLand (TP $2.90).

POSITIVE NEWS
*SIA
- Lifted group passenger load factor of 80.8% (+4.1ppt) in Oct as traffic growth (+8.3%) outpaced capacity expansion (+2.8%).
- Cargo load factor improved 1.6ppt to 67.8% on higher cargo carriage (+1.8%).
- Notably, subsidiaries SilkAir (+6.5ppt to 73.8%) and Scoot (+9.1ppt to 95.8%) also notched markedly higher load factors.
- Parent carrier load factor rose 2.8ppt to 80.2% across routes to East Asia (+3.4ppt), Americas (+4ppt), Europe (+2.3ppt), South West Pacific (+0.3ppt), West Asia and Africa (+5.7ppt).
- Last traded at 0.95x P/B.

*CapitaLand
- Acquired Viet Hung Phu Real Estate Business Investment Joint Stock Company (VHP) for US$38.9m ($53.5m).
- VHP owns a 14,474 sqm land plot in District 4, Ho Chi Minh City, which is slated for a residential development.
- Trades at 33% discount to its RNAV/share of $5.25.

NEUTRAL NEWS
*Noble Group
- The struggling commodity trader is reorganising its rare earths and special ores & metal businesses into two distinct operating entities, Kalon Resources, and Talaxis, for growth.
- But the group continues to fight for survival as liquidity and credit constraints crimp its trading business.
- Last traded at 0.23x P/B.

*Darco Water
- Proposed placement of 1.5m new shares (2.62% existing share capital) at $0.60 each to controlling shareholder Robert Stone, which will raise his stake to 18.13% from 15.99%.
- Net proceeds of $0.88m will be used to invest in public-private partnership water infrastructure projects.

*MMP Resources
- Proposed issue of 12.5% convertible bonds due 2021 for $100k and placement of 7.99m new shares at 0.54¢ each.
- Aggregate proceeds of $114.5k from structured debt specialist fund, Maiora Asset Management, will be used for investment purposes.

*shopper360
- Entered into a 60:40 JV with Pahtama Group.
- The move will help expand its marketing services in the retail and consumer goods industries in Myanmar.

*Marco Polo Marine
- Obtained majority support of 89.81% in favour for the redemption of $50m 5.75% notes using cash and equity swap.
- The approval will give Marco Polo the green light to proceed with the redemption of $71,736 per note, comprising cash of $35,868 and an 1.025m shares at 3.5¢ each, to be made in Jan 2018.
- This will pave way for further refinancing and debt restructuring, involving a $60m equity fund raising via new shares and rights issues and settling trade debt via instalments and share issuance.

*Envictus International
- Proposed to acquire Motivage from the group's own Deputy CEO Khor Sin Kok and his sister Khor Guat Bee for RM24m.
- The Malaysian target is licensed to manufacture sweetened condensed milk and various other related dairy products.
- Motivage recorded a net loss of RM0.22m in FY9/17.
- The consideration implies 1.11x P/B, and will be funded via cash (RM5m) and an issue of 15.8m new shares at $0.3913 apiece.
- Last traded at 0.44x P/B.

*Olam
- Issued 82,766 new shares in relation to a warrant exercise at US$1.09 each.
- 150m outstanding warrants remains, which expires on 29 Jan 2018.
- Trades at 16.5x forward P/E and 1.3x P/B.

*Second Chance Properties
- Issued 26,000 new shares in relation to a warrant exercise at $0.25 each.
- 747m outstanding warrants remains, which expires on 23 Jan 2020.
- Counter trades at 20.2x trailing P/E and 0.74x P/B.