- The market is set for a mixed start after pacing a global rally as investors shrugged off the breakdown in trade relations between US and Europe/China to drive tech stocks higher.
- Oil-related counters may come under pressure as crude fell below US$66/bbl after an OPEC stressed the need to ensure supplies can meet growing demand, adding to speculation the cartel will phase out its production cuts.
- Technically, the STI is rebounding from deeply oversold levels with topside resistance at 3,510 (near 50-dma). Key support is at 3,424 level (200-dma).
- May PMI dipped 0.2ppt m/m to 52.7 (est: 53.0) but remained in expansionary mode for the 21st straight month.
- The latest reading was attributed to slower growth in factory output, new orders, new exports, inventory and employment.
- The electronics PMI edged up 0.1ppt to 52.3, which is into its 22th consecutive month of growth, backed by pick-up in new orders, exports and factory output.
- Its 40% owned, 1,052-unit residential project, Affinity at Serangoon has sold 112 out of 300 units launched over the weekend at an average selling price of $1,575 psf.
- 80% of buyers were Singaporeans while remaining 20% were PRs and foreigners.
- The group and consortium partners Lian Beng (20%), KSH associate (20%) and Super Group's Teo Family (20%) acquired the former Serangoon Ville site in a collective sale for $499m or $835 psf ppr in Jul '17.
- Trades at 37% discount to RNAV.
- Secured new orders for nine new vessels in May, including two 82,000dwt dry bulkers, two 208,000dwt dry bulkers and five 12,000-TEU containerships for US$578m
- In Apr and May, the shipbuilder delivered 18 vessels, comprising large containerships and dry bulkers.
- To-date, the group has outstanding order book of US$4.1b for 115 vessels, which will keep the its yards busy until 2020.
- Trades at 9x forward P/E and 0.73x P/B.
- Launching non-stop services to Newark in Oct, and Los Angeles soon, using its new A350-900ULR aircraft, marking the resumption of its non-stop Singapore-New York flight since 2013.
- The Newark service will offer 67 business class and 94 premium economy seats, and cover over 15,000km, with a flight time of just under 19 hours, making it the world's longest non-stop flight.
- With seven of the ultra long range planes due for delivery by Mar '19, the airline plans to operate similar services to other US destiations.
- Trades at 0.95x P/B.
- Awarded $8.7m contract to Ping Tan Construction for the construction of office building at 18 Pioneer Sector 1, Jurong, slated to be completed by 2Q19.
- The group will also be inviting tenders for tank and piping installation and jetty construction, in preparation for trading and manufacturing volume expansion amid stronger business and volume growth.
-Trades at 13.9x trailing P/E.
*Perennial Real Estate
- Acquiring additional 14.7% stake in Xi'an Perennial Cheng Tou East Real Estate Co for Rmb90m, raising its interest to 65.7%.
- Xi'an Perennial East is developing Plot 5 of Xi'an North HSR Integrated Development, on which is Perennial's second HSR healthcare integrated mixed-use development.
- The plot will comprise mainly medical/healthcare, facilities, hotel and retail, complemented by medical-related amenities when completed by 2020.
- The transaction will be funded via combination of internal cash and bank borrowings.
- Trades at 0.51x P/B
- Acquiring Indonesian coal assets of Param Mitra Coal Resources (RMCR) in $400m reverse takeover deal.
- PMCR is in the business of coal mining, logistics and trading of thermal coal sourced from various coal mines in Indonesia.
- It has mining rights over concession areas covering 7,243 ha with an estimated coal resources and coal reserves of 746m tonnes and 544m tonnes, respectively.
- The group will consolidate 100 shares into one consolidated share prior to the completion of the proposed transaction and issue 488.9m new consolidated shares at $0.8182 apiece to PMCR.
*Asian Pay TV Trust
- Despite several notices, a limited number of Restricted Persons (PRC investors) continue to own APTT units.
- As such, APTT units owned by PRC investors will be sold on-market by broker-dealer.
- To recap, investors from People's Republic of China are not allowed to invest in cable television industry under Taiwan regulation.
- Trades at 0.51x P/B and 15.7% indicative yield.