SG Market (11 Sep 17)

MARKET OVERVIEW
- Markets are off to a nervous start to the week amid mounting geopolitical tensions on the Korean peninsula and destruction wrought by hurricanes in US.
- But tech plays are likely to come into focus with the anticipated launch of the iPhone 8. Preferred plays in the tech space include Venture, UMS, AEM and Micro-Mechanics.
- Technically, immediate support for the STI lies at 3,220, with overhead resistance at 3,275.

POSITIVE NEWS
*BRC Asia/HG Metal
- Conditional cash offer from Esteel Enterprise at $0.925 apiece (7.6% above its last close), valuing the steel mesh manufacturer at 44x trailing P/E.
- This follows the 43.77% stake purchase by Esteel from several substantial shareholders.
- Additionally, another major shareholder HG Metal has accepted the $39m offer for its 22.62% stake, subject to shareholders' approval.

*CWG International
- Successfully bid for land use rights of a land parcel at Zhangjiagang, Suzhou City in Jiangsu, China, for an undisclosed price.
- The 36,829 sqm site is designated for residential development and has a plot ratio of 1.8, giving a gross floor area of 66,292 sqm.
- The acquisition will enable the group to sustain its scale and presence in China but any development is not expected to complete before 2019.

*TEE Int'l/Advancer Global
- Forms strategic alliance to pursue new business opportunities to provide comprehensive solutions to customers.
- The collaboration will explore opportunities for joint tenders in contracts which require both mechanical and electrical engineering works and facility management services.
- Additionally, the partnership will jointly invest in facilities management projects in the Asia Pac region.

*Sysma Holdings
- Secured a $7.3m contract for the construction of a two-storey detached dwelling house with swimming pool at Tanglin Hill.
- The contract shall commence in Sep '17 and run for 18 months.
- Trades at 6.4x historical P/E and 0.8x P/B.

*Vicplas
- Acquiring Chelle Medical, a medical device contract manufacturer based in the International Trade Zone in the Seychelles, for US$5m, representing 2.5x P/NTA.

NEGATIVE NEWS
*ASL Marine
- A fire incident occurred at its Batam shipyard, on board a tanker that was being repaired at the dry dock.
- The incident resulted in the loss of five lives and one injury, which are employees of ASL Marine's subcontractor.
- Work on the vessel has been suspended pending investigation.