Tuesday, November 21, 2017

SG Market (21 Nov 17)

- 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.

*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.

- 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.

- 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.

- 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.

- 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.

*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.

- 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.

*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.

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