SG Market (19 Sep 17)

MARKET OVERVIEW
- Investors will be looking for potential catalysts from PM Lee's official visit to China today through to Thu (21 Sep), well-timed before the twice-a-decade CCP Congress meeting to be held on 18 Oct.
- Technically, the STI looks poised break above its mmediate resistance at 3,245 (20-dma), with the next upside objective at 3,275 (50-dma). Underlying support is at 3,190.

SECTOR NEWS
*Property
- Owners of former HUDC estate Braddell View plan to hop onto the en-bloc bandwagon.
- The sprawling 918-unit development sits on 1.124m sf of land with a 2.1 plot ratio, and is reportedly seeking a $2b asking price.
- If successful, the sale could trump Pine Grove's $1.65b en bloc bid, potentially making it the largest collective sale since Farrer Court's $1.34b deal in '07.

POSITIVE NEWS
*Sembcorp Marine
- Signed LOI with Texas-based SeaOne Caribbean to design and construct at least two large compressed gas liquid carriers, for an estimated cost of US$500m each.
- The 366m 2bcf neo-panamax carriers will incorporate SMM's proprietary ship component inputs and will be deployed for SeaOne's Caribbean Fuels Supply Project.
- This could mark the start of a pick-up in non-drilling solutions contract wins after securing a meagre $270m of orders ytd.
- Trades at a hefty 41.8x forward P/E.

*SGX
- Launched SGX Iron Ore Futures Indices, a suite of inverse and leveraged indices based on the SGX TSI Iron Ore China Index Futures.
- This comprises two total return indices that offer both long and short exposure to the seaborne iron ore market.
- Last traded at 21.7x forward P/E.

*Cityneon
- Disclosed that recently-acquired Jurassic World: The Exhibition has just surpassed its one-millionth visitor, after operating for 12 months in Australia and US.
- Trades at 17x forward P/E.

*Aoxin Q&M
- Entered into definitive agreement to acquire Shenyang Qingaomei Oral Restoration Technology for Rmb16.9m (16.9x FY16 P/E) by end-2017.
- Separately, the group is also acquiring Zhuanghe City Chengguan Street Jiadawei Dental Clinic for Rmb8.4m (13.5x FY16 P/E) by end-2017.

*Sunpower
- Secured two projects worth more than Rmb500m to build and operate a power plant in Shanxi and to supply equipment to a petrochemical complex in Zhoushan, China>
cogeneration facility in the Xinjiang Circular Economy Demonstration Park in Shanxi Province, China, with investment sum of Rmb490m.
- The first project will involve the phased construction of two 90tph boilers and one 9MW electricity generator, one 150 tph boiler and one 18MW electricity generator, as well as steam distribution pipelines, in the Xinjiang Circular Economy Demonstration Park, Shanxi province, with investment cost of Rmb490m.
- The second contract, worth Rmb53m contract, is to supply heat exchangers and coolers for Zhejiang Petrochemical's refinery and chemical integration project.

*TEE Land
- Entered six call options to buy 2,236.1 sqm of freehold land at Seraya Crescent for $25.7m.
- The group plans to build a block of residential apartments, with the deal expected to complete by Jan '18.
- Last traded at 0.53x P/B.

*Spackman Entertainment
- Newly acquired unit Frame Pictures has secured a 320m won (US$0.28m) contract to supply camera systems and equipment for Netflix's first Korean original drama series, Love Alarm.
- According to its CEO, Frame Pictures has a strong pipeline of projects for 2H17.
- Trades at 9x forward P/E.

*The Trendlines Group
- Signed MOU with China-based Haier Group to explore ways for collaboration in developing new technologies, solutions and products, deal flow, and investments.
- This is aimed at supporting Trendlines' portfolio companies in China, and Haier's entrepreneurs in Israel.
- At end-2016, Haier has 1,333 venture capital investments totalling US$1.8b.

NEUTRAL NEWS
*Soilbuild REIT
- Called upon an insurance guarantee of $5.1m from its tenant, NK Ingredients, for rental arrears amounting to $3.4m.
- The remaining $1.7m of the insurance guarantee to be claimed is equivalent to four months of rent.
- Assuming the lease was terminated on 1 Jan '17, pro forma 1H17 DPU would contract 10.6% to 2.64¢.

*IPC Corp
- Entered non-binding agreement with Xinyuan Real Estate to acquire a 51% stake in Beijing iJourney Technology Development (BiTD) for an indicative US$5.1m.
- Funding for the intended acquisition will be via new IPC shares at $0.40 apiece.
- BiTD is an artificial intelligence business that focuses on R&D and marketing of robots which serve the needs of families.
- The group also entered a separate non-binding agreement for the proposed disposal of Grand nest HOTEL zhuhai to Xinyuan for Rmb200m.