SG Strategy

SG Strategy: CS has strategy report on back of stellar Tourism numbers. Note that industry kicked off 2011 with a 16% jump in visitor arrivals, +16% YoY (-6% MoM) to 1.06m in Jan, driven by strong growth invisitor arrivals. Tip Key tourism stocks as Genting SP, SIA, SATS, CDLHT, AirAsia and ComfortDelGro. Maintain UnderPerform on Tiger Airways.

* Cosco: Seadrill enters into agreement with Cosco Nantong Shipyard to build 2 tender rigs for total project price of US$225. Co has not yet made an official announcement.

FirstResources: Strong FY2010 results, with rev at US$329.9m +50.7%yoy and net profit at US$143.1m +27.2%yoy. Co posted revaluation gains in bio assets of US$49.5m and even after stripping out the gains from both 2010 and 2009, core net profit rose +37.1%yoy. Improved results were driven by both increases in both average selling prices (ASPs) and volumes…
For its 2 products, ASPs and volumes for Palm Oil was up 40.0% and 4.3% yoy and ASPs for Palm Kernel was up 84.5%, and volumes up 2.1% yoy respectively. Co expects strong underlying profits in FY2011, with palm oil prices to remain firm in 1Q2011 due to supply disruption and resilient demand from emerging economies…
However higher export taxes by the Indonesian govt will offset some gains. Production volumes are also expected to growth due to the young age of co’s plantation profile and new planting of 15k hectares. A dividend of 1.9c declared bringing total FY2010 div to 2.9c, approx 2.3% yield. Co trades at 10.0x P/E.