Sakari

Sakari: UOB Kay Hian has Technical Buy Call with 17.4% potential return and $1.86 TP. House believe the stock is grossly oversold and a retracement near $1.50 may provide accumulation opportunities. Currently, the stock is trading near its lower Bollinger band and the rebound may test its mid band. The weekly Stochastics indicator appears to form a bullish crossover. The alternative exit for this long position will be if the stock falls below $1.41.

ST Engrg

ST Engrg: its aerospace arm has signed agreements with Airbus and EADS to launch an A330 passenger-to-freighter (P2F) conversion programme. STAerospace will invest €110.5m (S$186.6m), made up of A330P2F engrg devt work and internally funded cash, for a 35% stake in EADS EFW. EADS will hold the remainder 65% shareholding and a call option on ST Aerospace’s 35% shareholding, which will lapse when the A330P2F work is successfully delivered to EADS EFW by the end of 2012. ST Aerospace will be the programme and technical lead during the A330P2F development phase while EADS EFW will drive sales and marketing activities. The investment is not expected to have any material impact on the earnings of STE in the current financial year but will reduce STE’s NTA by $148m. OCBC maintains Buy rating with TP $3.50.

Midas

Midas: announced that it has been awarded two metro contracts worth RMB62.2m in total. The first contract, worth RMB33.7m, would involve the provision of aluminium alloy extrusion profiles for 22 train sets, or 132 train cars for the Ningbo Metro Line 1 project, which is Midas’ first penetration into the city. The second contract of RMB28.5m will see Midas supply aluminium alloy extrusion profiles for 21 train sets, or 126 train cars for the Nanjing Metro Line 10 project. Delivery for both contracts is scheduled to take place gradually from 2012 to 2013. This is Midas’ first contract wins announcement for the year. Metro contracts will continue to play a key role in Midas’ operations, given that China’s Ministry of Railways has yet to resume the re-tendering of high-speed rail train car contracts. OCBC maintains estimates as its projections allow for such contract wins. Keeps at Hold with TP $0.33.

Tiger Airways

Tiger Airways: Citi maintains Sell and lowers TP to $0.46 from $0.55. House cut estimates and lower TP to factor in a slower profit recovery due to: 1) Risk of continued losses in Australia upon ramp-up of capacity from Jun-Dec ‘12; 2) Ventures in Indonesia and the Philippines may struggle due to intense competition and overcapacity respectively; 3) While SG unit is expected to turn profitable, it may be insufficient to offset overseas losses; 4) Overall environment continues to be characterized by weak pricing power and high jet fuel costs.

People's Food

People's Food: To sell remaining 36.8% interest in Pine Agritech for Rmb463.6m to co Link Crest. The sum will be paid out in 10 instalments for 5 yrs with an effective interest rate of 5% p.a Pine Agritech is involved in the manufacture and sale of soybean-based products and supplies co with its entire raw material req of Soy Protein Isolates. The sale price is at a discount, est to be 83% of the fair value of Pine Agritech. Pine Agritech has made losses in the prev 3 yrs.

LionGold

LionGold: Profit warning, substantial loss before tax expected for Mar-end FY2012. In a separate announcement, co will lend $750k to ASX-listed Republic Gold at 8.5% per annum for potential sale of Republic's subsi Vista Gold. Vista Gold owns the Amayapampa Gold Project in Bolivia consisting of 38 overlapping concessions of 3.4k ha. The interest on the loan will accrue only if the share sale agreement of Vista Gold is not signed within 30 days. The agreement will allow co to acquire 100% of the Vista grp of companies and allow Republic to offset the loan with the consideration of the sale.

Sound Global

Sound Global: Announced 2 contract wins. Won the bid for phase II of a BOT project in Xi'an, Shaanxi to increase wastewater treatment capacity by 50k cubic m per day. The project is est to cost approx Rmb58.6m Co also won the bid for a transfer-operate-transfer (TOT) project in Hailun, Heilongjiang which has a wastewater treatment capacity of 20k cubic m per day. Co acquired the project at Rmb30m