SG Market (15 Sep 17)

MARKET OVERVIEW
- Investors may face more market jitters after North Korea fired another missile over Japan, further ratcheting up geopolitical tensions and sending the greenback lower against safe haven assets.
- Technically, the STI is sitting right on the 3,220, support. If this is broken, the next level would be 3,190. Overhead resistance remains at 3,275.

SECTOR WATCH
*Property
- Owners of 660-unit Pine Grove in Holland Road area are planning to launch Singapore's largest enbloc sale with an asking price of $1.65b.
- If it succeeds, it will beat the previous record of $1.34b set by the 618-unit Farrer Court's collective sale back in 2007.
- The 893,227 sf former HUDC estate has a 2.1 plot ratio (existing: 1.56) and can accommodate up to 2,000 new homes.
- So far ths year, there has been nine collective sales worth $3.5b with another six deals totalling $2.7b put up for tender.

POSITIVE NEWS
*Keppel Corp
- Confirmed media reports that it is looking to list a US commercial REIT on SGX, with an initial portfolio of 11 office assets injected by a fund managed by KBS Capital Advisors.
- Listing applications have been submitted and are currently under review and details and terms of the IPO are still being finalszed.
- Trading at 13.8x forward P/E.

*Mermaid Maritime
- Awarded a long-term cable survey contract in the Middle East worth US$7m.
- The contract will commence in 3Q17 and last for 21 months.
- Last traded at 11.6x forward P/E and 0.38x P/B.

*Trendlines
- Agtech-portfolio company EdenShield raised US$2m from strategic and financial investors.
- Funds raised will be used to accelerate sales and expand farming operations.

NEGATIVE NEWS
*HLH Group
- Terminated the proposed issue of $16m 5% convertible bonds due 2020 to Bridge Roots Capital, due to the non-performance of certain conditions.
- The group is considering the disposal of investment properties and other financing options to support its property development division.

NEUTRAL NEWS
*Keppel T&T
- Invested US$10m for a 24.1% stake in a US-based start-up that is engaged in developing water-cooled data centres.
- Trades at 15.8x forward P/E and 1.1x P/B.

*Silverlake Axis
- Disclosed intention to sell up to 19.2m shares in 9.25% owned Global InfoTech within a six-month period from 13 Oct.
- This is to comply with Chinese securities regulation that substantial shareholders of publicly listed companies state their intentions regarding disposal of shares,
- Trades at 19.6x forward P/E.

*Tuan Sing
- Received regulatory approval for the asset enhancement initiative of Hyatt Centre and development of one of two vacant land plots in Perth, Australia.
- The 2.5-ha site comprises the 367-room Hyatt Regency hotel, the adjoining office/retail Hyatt Centre and two vacant plots.
- The AEI will offer 20,000 sqm of retail space upon completion in 2019.
- Last traded at 16.4x trailing P/E and 0.45x P/B.

*Vard
- Secured a contract with Colomno Dockyard for the design of a cable lay vessel for Kokusai Cable Ship Co in Japan for an undisclosed sum.
- Construction will be done at Vard's Colombo Dockyard in Sri Lanka with expected delivery in 2019.
- Trading at 0.75x P/B.

*KTL Global
- Proposed allotment and issue of 26.1m new shares (10.8% of share capital) to Executive Chairman and controlling shareholder, Tan Tock Han, at 3.825¢ each.
- The new share subscription is to set off a $1m debt owed by the company to Tan.

*Global Yellow Pages
- Acquiring a 21.85-ha vacant plot of land in Papakura, New Zealand for NZ$38m.
- It intends to develop the land and subdivide it for sale as well as explore developing part of the land into residential and commercial units.

*YuuZoo
- Signed a three-year agreement to use Vinculum's Vin eRetail for multi-channel retailing.
- The platform will enable it to tap on a global network of merchants, brands, suppliers and marketplaces.

*China Kangda
- Entered into a framework agreement with undisclosed vendors to acquire a target company that is engaged in retail pharmaceutical business and owns pharmacies in Qingdao, China for about Rmb30m.