SG Market (09 Jul 13)

SG Market: S’pore shares may hold up as Wall Street advance on optimism before the start of the earnings season and eurozone finance ministers approved aid for Greece. US stocks built on gains sparked by last week’s robust jobs data as attention turned to the improved view of the economy and forward earnings guidance. However, there are concerns that Asian markets may decouple from a strengthening US as global funds shift out of Asia amid slower growth in China. The STI is expected to be range-bound between 3,130 and 3,200 as investors stay cautious ahead of key Chinese economic data due this week. Stocks to watch for: *Global Logistic Properties: Will commence development of GLP Naruohama, a 110,000 sqm multi-tenant logistics facility in Greater Osaka in May 2014 at an estimated cost of JPY15.7b (US$160m) with completion due in Jun 2015. . This is its 21st facility in the area and the fifth project under GLP Japan Development Venture, its 50/50 JV with Canada Pension Plan Investment Board, which has committed US$603m out of its US$2.2b investment target. *AsiaMedic: Extending lease of flagship medical centre and secured additional floor space at Shaw House for 15 years. The expansion is scheduled to be completed by 2H13 and will lift its total floor space by over 50% to 22,000 sf. New sub-tenant Nichii Int’l Clinic, a subsidiary of Tokyo-listed Nichii Gakkan, will take up 1,680 sf to house its first general practice by 3Q13. *Q&M Dental: Acquired 70% of AR Dental Supplies Sdn Bhd (ARD) for RM8.4m. This is the group;s first foray ino the Malaysian dental supplies and equipment distribution sector to support its six clinics in Klang Valley and Johor Bahru. The group also intends to capitalize on the contacts and network of ARD to recruit more dentists, acquire more dental practices and expand in Malaysia. *Sunpower: Secured a Rmb253.5m EPC contract to supply sulphur recovery and flare systems to Xinjiang Kuishan Petrochemical Base, a large-scale oil-coal-chemical-power-heat integrated project of BaoTa Petrochemical Group. This is the largest contract won by the group’s energy saving and environmental protection systems division to-date. *Cambridge Industrial: Disposing its 69.4% stake in Lam Soon Industrial Building for $140.8m, a 28% premium to its book value of $110m. The property is a freehold strata-titled industrial building with residential zoning. The buyer, a JV between Enviro-Hub and BS Capital, has plans to redevelop the building into residential apartments. *Enviro-Hub: 51% subsidiary, EH Property has exercised the options to purchase an aggregate 97 strata units (69.4% strata share value) at Lam Soon Industrial Building for $140.8m. The remaining 49% shareholding in EH Property is held by BS Capital, wholly owned by Raymond Ng Ah Hua, a controlling shareholder and Chairman of Enviro-Hub. *Blumont: Entered into conditional agreement to subscribe for 60.05m placement shares or 12.8% stake in ASX-listed Cokal for A$9.6m. Cokal is a coking coal producer with interests in coal exploration concessions in Central and Western Kalimantan, Indonesia and Tanzania. This is Blumont’s third investment in a resource-based company, coming on the heels of its acquisition of Hudson Minerals (iron ore producer in Indonesia) and 11.5% interest in Celsius Coal (coal explorer in Kyrgyz Republic). *Chew’s Group: JV Chew’s A-Tech has signed a 30-year lease on 1,000 mu of land in Guilinyang Economic Development Zone in Hainan, China to set up a high technology seafood research training centre, marine seafood reproduction facilities anf an eco-tourism garden project. To be developed over five years, the first phase of the project involves the development of 100 mu of land into a water agricultural park with 20 greenhouse facilities for the rearing of sea cucumbers. Costruction cost is estimated to be US$3m with competion in two years. *Wilmar Int’l: Received merger clearance to form a 50/50 global amines company with Clariant Int’l. The JV will be the global platform for production and sales of fatty amines and selected amines derivatives. It has its own production capacities in China and Germany, as well as access to amines in Brazil and Mexico. For amines derivatives, it can harness a dozen of Clariant's multi-purpose plants globally.