SG Market (30 Mar 17)

Local shares may consolidate gains after hitting a 12-month high in a lively session yesterday on positive broad market momentum despite lingering uncertainty over Trump's tax plan and UK's formal Brexit move.

Regional markets opened mixed in Tokyo (-0.4%), Seoul (+0.3%) and Sydney (+0.4%).Technically, immediate resistance for STI is seen at 3,200 with downside support at 3,140.

Stocks to watch:
*GLP: Another committed co-investor of its US Income Partners III has made an initial capital contribution of US$79m, representing 24.2% of the aggregate capital contributions to the fund to-date. Following this fourth syndication, GLP’s interest in the fund has been reduced from 74.1% to 49.9%.

*TEE International: The engineering group could join the growing list of companies exiting the Singapore bourse after its CEO and controlling shareholder (58.2% stake) Phua Chian Kin disclosed he is finalising a proposal to take his company private and expects to make an announcement end of the week. Trading halt of its shares will be extended until 31 Mar. At the last closing price, TEE is valued at a relatively hefty trailing P/E of 25.5x and 0.96x P/B.

*mm2 Asia: Entered non-binding MOU with StarHub and Astro Malaysia to co-produce a single version of singing reality show, The Voice, for Malaysia and Singapore, which is estimated to cost SGD5m. The partners will collaborate on the broadcast, promotion and securing of sponsorships for the iconic show, which is scheduled to roll out in 2Q17.

*Hong Leong Asia: 40.2% owned China Yuchai has established a 50:50 JV with MTU Friedrichshafen, a wholly-owned entity of Rolls Royce Power Systems, based at Yuchai's primary manufacturing facility in Yulin, to produce MTU's Series 4000 diesel engines for the oil & gas and power generation industries in China.

*Katrina: Entered into a non-binding MOU with Ajisen China to collaborate in opening restaurants under "So Pho" brand in Hong Kong and China on terms to be negotiated.

*Nordic: Signed non-binding term sheet to exclusively negotiate on the proposed acquisition of Ensure Engineering, which provides engineering services to the marine, industrial, oil and petrochemical industries, as well as public infrastructure maintenance services. Total consideration will not exceed $18m, capping P/B valuation at 1.92x.

*Second Chance Properties: 2QFY17 net profit surged 79% from a low base to $2m, mainly lifted by a $1.1m fair value gain on financial assets. Revenue fell 9.4% to $7.6m from weaker sales in apparel, securities and lower property rental contribution. NAV/share at $0.3412

*Camsing Healthcare (former Jacks Int'l): Swung into FY17 net profit of $0.2m (FY16: $2m loss), lifted mainly by other income of $1.2m from management and license fees. Revenue rose 29% to $18.2m from improved foreign wholesale trade of its health foods and supplements to China.

*Raffles Education: Terminated a deal to buy LEI Holdings US-1, which owns and operates Santa Fe University of Art and Design in the US, as regulatory approvals are unlikely to be granted by 3 Apr.

*Imperium Crown: Received LOIs for three of its Japanese properties, namely Green Forest Kuramae, New City Apartments Kuramae, and New City Apartments Minowa, for an aggregate sale price of of ¥3.3b ($41.8m). The divestment is in line with its strategy to exit its Japan portfolio and reallocate capital to new projects in Australia and China.

*Tritech/Terratech: Tritech has undertaken to vote in favour of the proposed RTO of subsidiary Terratech at the upcoming EGM. Post-approval, Terratech will subsequently proceed with its 4-into-1 share consolidation, and proposed compliance placement of up to 33.8m new consolidated shares at $0.28 apiece.

*BlackGold Natural Resources: Signs non-binding MOU with PT PLN Batubara to further cooperation in relation to the existing supply of coal to the latter's power plants in Indonesia..

*Hotel Properties: Announced its intention to redeem the $150m 6.125% perps that are due on 4 May ’17