Tuesday, December 5, 2017

SG Market (05 Dec 17)

- Strong signs of broader-based growth in the manufacturing sector and heightened probability of a US tax bill could provide some support to recent market weakness.
- Technically, underlying support for the STI lies at 3,390, with overhead resistance at 3,460.

- Nov PMI came in at 52.9, up from 52.6 in previous month, marking its 15th consecutive month of expansion in manufacturing and highest reading since Dec '09.
- The key leading indicator was fuelled by higher factory activity across most sectors.
- Upbeat data lends credence to Maybank KE's bullish view of the economy, which is anticipated to grow 3.4% in 2017, surpassing the official GDP growth forecast of 2-3% range.

- Portfolio company, Magdent, raised US$1.75m from three angel investors.
- Magdent developed a technology that uses electromagnetic fields to stimulate, accelerate and improve bone formation and quality, and to prevent bone infection, leading to more successful dental implant procedures.
- Trades at 12.1x forward P/E and 0.71x P/B.

- Entered into a VND417.8b ($24.8m) contract with Sing Viet City to undertake earthworks on a 63.8 ha land in Ho Chi Minh City.
- Works expected to commence in Dec and be completed by Sep '18.
- Controlling shareholder Yap Teiong Choo owns 97% of Sing Viet City.
- The loss-making group trades at 0.41x P/B.

*New SGX Watchlist entrants:
- Interra Resources
- ISR Capital
- Global Yellow Pages

- Disposed Q&M Medical Aesthetic & Laser Centre to Dr Li Jingxiang for $0.24m.
- Net liability of the entity was $1.42m as at Sep '17.
- Trades at 31.3x forward P/E.

*Hong Leong Asia
- Completed the disposal of Rex Plastics at reduced price of RM7.54m (from RM10.8m).
- This was due to changes arising from inventory stock.
- The loss-making group trades at 0.62x P/B.

*Lian Beng/KSH Holdings
- Acquired 42% stake in Development 24 from KSH for $0.42m, or 1x P/B.
- Development 24 is engaged in property development and investment holding.

*CWG Int'l
- Incorporated three 60% owned subsidiaries for the purpose of holding specific property development projects.

*Indiabulls Properties Trust
- Exercised its right of compulsory acquisition after it received 99.66% acceptances following its voluntary conditional cash offer at $0.90/unit.

*China Great Land
- Seeking shareholders' approval on expanding its core business to include environmental solutions.
- Management believes that the diversification could enable the group to tap in a new market and boost its income stream.
- The proposal arose from increasing awareness of the negative impact of pollution in China, as well as a weak core business in concrete piles due to the challenging operating environment.

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