- 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.
- 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).
- 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.
*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.
- MS Holdings
- 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.
*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.
- 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.