SG Market (31 Aug 17)

MARKET OVERVIEW
- The market could edge higher on strong US economic data but gains may be capped by light pre-holiday trading.
- Technically, downside risk for STI lies at 3,220, with immediate resistance at 3,275.

POSITIVE NEWS
*Cityneon
- Acquired the global IP rights to Jurassic World: The Exhibition for US$25m, or 5x forward P/E based on a profit guarantee for its current Chicago tour ending Jan '18.
- This is its third franchise after Avengers S.T.A.T.I.O.N and Transformers: Autobot Alliance.
- Trades at 16x forward P/E.

*Oxley
- Acquiring all six residential units at Toho Green condominium at Yio Chu Kang Road for $8.4m for redevelopment.
- The 99-year leasehold property sits on a land area of 1,313 sqm.
- Trades at 7.7x trailing P/E and 1.6x P/B.

*Yongnam
- Secured three contracts worth $70m for projects in Singapore and Myanmar.
- One of the Singapore projects involves the installation of structural steelwork for JTC Logistics Hub @ Gul, while the second project is for the supply of king posts and strutting works for Woodlands Health Campus.
- The Myanmar project is for main building works for extension of the Japan Tobacco Int'l factory.
- All projects are expected to be completed between 2018 and 2019.

NEGATIVE NEWS
*TTJ
- Terminated its agreement with the Building and Construction Authority to manage and operate Jurong Dormitory, due to unexpected complexity in the building retrofitting works.

NEUTRAL NEWS
*Sembcorp Industries
- Acquired the remaining 28% stake in Sembcorp Green Infra (SGI) from IDFC Private Equity Fund III for $301m.
- SGI has close to 1,200 MW of wind and solar power capacity in operation and under development in India and contributed net profit of $39m, or 10% of the group's FY16 earnings.
- The deal will allow the group more flexibility to drive further growth within the renewable energy sector in India.
- Trades at 13.9x forward P/E.

*Yangzijiang
- Entered placement agreement with JP Morgan for 137m new shares (3.6% existing share capital) at $1.53 apiece.
- Net proceeds of $208.8m will be used to fund new investments and working capital.
- Upon completion, net cash will be lifted to Rmb2,099.4m from Rmb1,081m.

*Hi-P
- Dismissed claims that the group has been approached for a possible buyout or strategic tie-up, in relation to an article published on Straits Times.

*Aspen
- 30% owned Aspen Vision Land completed the acquisition of a 41-acre plot of land in Penang, Malaysia for RM67.9m.
- Additionally, the associate will also acquire another 45-acre plot in the vicinity for RM98m.
- The acquisitions are in line with the group's planned development of Aspen Vision City.

*Sincap
- Proposed placement of up to 420.25m new shares at a minimum price of $0.018 apiece to raise net proceeds of at least $8m.
- The new shares represent 33.3% of the enlarged share capital.
- KGI Securities has been appointed as the agent for the proposed placement.