Keppel Corp

Keppel Corp: secured a contract for its high-specification KFELS B Class rig from new customer, Safin Gulf worth US$199m. The pricing of the rig is slightly higher than the last rig order secured by KEP in Aug at US$195m and is probably reflective of the faster delivery and variations.
The rig will be delivered in 3Q12, and the relatively short delivery time (the norm is abt 2yrs) is because the rig will be a refurbishment and upgrade of a KFELS B Class jack-up rig that KEP purchased earlier this year.

This brings ytd orders to $8.3b, a record year for KEP. Despite the strong orderbook visibility, KEP share price has suffered an almost 40% pullback since the peak in May ’11.
It turns out that quarterly order wins may be a better indication of share price trends instead. The poor economic outlook, drying up of new rig orders and recent rig option expiries do not bode well for KEP’s orderbook going forward.
Although, the Street still has mainly Buy calls, many analysts have since lowered their earnings and TP forecasts. Street TP now ranges btwn $9.60 – 13.90.

SG Market

SG Market: Spore shares are expected to fall following the rout on Wall Street with US indices dropping to fresh 2011 lows as fears over Greece overshadowed stronger-than-expected US manufacturing data. On Mon, the benchmark STI also closed down 2% at 2621.40, nearly a 2-year low, in a broad-based selloff though cyclical sectors such as commodities and offshore took the brunt of the hit. Amid growing global uncertainties, stocks vulnerable to more downside risks would be high beta cyclical plays. These would include shipping, offshore and marine, plantation, property and technology stocks. If STI breaks below critical 2600 support, next downside seen at 2380.

SIA Engineering

SIA Engineering: CIMB has Technical Sell Call. Note that after violating its double top neckline band at $3.85 in August, prices quickly formed a bearish flag pattern. Last week, prices fell below this flag, which signals that the next downleg is likely underway.

Both indicators show that the bearish trend may resume in the coming days if not weeks. The MACD turned down after testing the zero line, which is a negative signal. Traders should only take short positions now with a stop placed above $3.96 or $4.10, depending on one’s risk tolerance levels. A break below $3.75 would likely confirm that prices are heading lower again to retest the $3.45 lows. The following supports are at $3.35 and $3.20.

Noble Grp

Noble Grp: CIMB has Technical Sell Call. Note that following the failure to regain the previous double top neckline support now turned resistance; think prices would likely continue on its downward trajectory in the near term. Possible short term targets are $1.24 and $1.15.

MACD has turned negative again after confirming its dead crossover while its RSI has hooked downwards once more. As prices remained below its key MAs as well as its key resistance at $1.68, the odds favour the bears. Traders should continue to stay with the bear’s camp as the near term gains are likely capped at the $1.60-1.68 resistance band. House will only review call if the candles can push this band. Place a stop above $1.70 just in case.

Kruez

Kruez: (The Edge) Following recent bullish orderwins by Parent Swiber, Co. note that it is on track to achieve its 2013 target of clinching its 1st deep-water installation contract, with its new fleet of 3 ROVs and aims to be an established deepwater installation player by 2015.

Co has been performing well and orderwins this yr is more than US$100m and has to rent 3rd party subsea equipment to service its clients as business has been ‘so good’, with assets fully utilized in APAC and India. Despite strong orderbook, DBSV note that contracts are generally short-term nature and limits orderbook visibility.

Contracts from Swiber accounted for 76% of Kruez’s contracts a yr ago, while Co. is now gaining traction with 3rd party customers, while maintaining its commitment to Swiber, although mkt rates will be offered to parent.

Tat Hong

Tat Hong: Citi maintains Sell and lowers TP to $0.64 from $0.70. House lower FY12-13E ests by 7-8% to reflect a slower recovery amid the growing risks of a global economic slowdown. Expect margin pressure in TAT’s crane rental division to persist in view the tough operating environment.

NOL

NOL: Macquarie note that over the nx 2-3yrs NOL could have the opportunity to further assert its position as a leading containership operator as it takes advantage of the financial challenges likely to face its less well-capitalised competitors, esp. in Europe. Grp is currently trading on a P/BV of 0.7x, which is in line with the avg for Asian containership operators, and house do not see any near-term positive catalysts and maintain Neutral rating.