FreightLinks

FreightLinks: good 1QFYApr11 results. Revenue +19.5% to $36.6m, as main segments in freight forwarding, warehousing, and chemical storage saw improvements in volume and rates. Net profit to sh/h +359% to $2.4m, as associates swung to profit due to absence of impairment. Mgt remains “cautiously optimistic”; reiterates ongoing plan to reit certain properties to its 51% owned, Sabana Invmt Partners, which could be a catalyst in unlocking shareholder value if successful. Stock trades at 7.4x PE.

Biosensors

Biosensors: Awaiting trading debut of Microport Scientific's (853 HK) IPO on 24 Sep, which could reignite interest in the stock. Microport is China's market leader in drug-eluting stents (DES) with an est 30% market share. At an indicative IPO range of HK$4.60-6.10/share, Microport is valued at 20-27x FY10 PE vs Biosensors 20x FY11. If Shandong Weigao (1066 HK) current valuation of 38x FY11 PE is any guide, the pricing of Microport's IPO will be at the higher end the range.

Biosensors owns 50% of JW Medical Systems (JWMS), the last remaining private stent maker in China with a significant 20-25% market share. JWMS is a JV between Biosensors & Shandong Weigao. Good support at $0.835 with 1st resistance at $0.90 followed by $1.10 vs Nomura’s $1.20 price target.

Yangzijiang

Yangzijiang: BOA-ML restarts at Buy with $2.26 target, based on 14X FY11 P/E. Says China-based shipbuilder deserves re-rating given its sustained above-average profit margins, 3-year orderbook visibility, potential to close in on TDR price, which trades at premium to mother shares; believes the market has underestimated the sustainability of YZJ’s profit margins in FY10-12, despite its improving productivity, and the revenue recognition of existing orders that are largely secured at higher prices in 2007-08. Says company could have RMB9.6bn (S$1.9 bn) in funds for acquisitions in FY11, with potential targets being established yards equipped for new business like offshore marine engineering, or new yards located near to YZJ’s existing facilities.

Trek

Trek: +3.2% at $0.49, bucking broader market trend, and continuing its near vertical ascent. Trek’s growth story centers on its partnership with Toshiba, and new product, the FluCard. The FluCard is a micro processor that can be a substitute for SD cards in smart devices, allowing smart devices to ‘talk’ to one another, transfer data and share information wirelessly…

Trek may gain big if the FluCard emerges to be as successful as its previous product, the Thumbdrive. The difference now is that Trek has Toshiba to help protect its IP interests from competitors. Trek will receive licensing fees for the cards, which will be priced at US$50 apiece initially, though prices are likely to slide to around US$30…

With the partnership, Trek now gains access to the 45% of the US$1.3bn SD card market which Toshiba controls. Industry insiders estimate a potential revenue of US$200m a year for Trek by 2013, with at least 20% going straight to its bottom line. This compares with the US$6m Trek earned at its peak in FY07.
DMG only house to cover, with $0.55 target.

Swiber

Swiber: +2.9% at $1.05 in active trade. CIMB rates as Outperform with $1.42 target. Notes company bidding for an array of projects related to Saudi Aramco’s latest gas development project, worth a total of US$5bn. Says Swiber could announce several new contracts in 4Q10, and value of new contracts over next 12mths could be more than the US$400m clinched annually over 2007-08. Swiber’s orderbook stands at US$915m.

SGX

SGX will be launching ADRs of 19 major Asian companies on its new GlobalQuote board from 22 Oct. Many of these ADRs are not listed on their Asian home exchanges & SGX ADRs will enable investors to trade these companies on Asian time. The 19 ADRs are fully fungible with US-listed ADRs. Bank of NY Mellon will act as the depositary bank for SGX’s new ADR programme.

The 19 SGX ADRs are: Baidu, Ctrip.com, Changyou.com Home Inns & Hotel, Mindary Medical, Netlease.com, Shanda Interactive, Suntech Power, Trina Solar, Aluminium Corp of China, China Eastern Airlines, China Mobile, China Southern Air, China Telecom, China Unicom, Huaneng Power, Petrochina, Sinopec, Yanzhou Coal. These are all A-list China stocks with strong insti following & will definitely give a lift to the S-chips here as well as improve the trading volumes on SGX.

Golden Agri

Golden Agri: Greenpeace has launched a campaign to discourage potential investors from financing a US1.6b oil palm deal between the Liberian govt & Golden Agri, contending that the Sinar Mas palm oil arm is destroying Indonesia's forest & carbon-rich peatlands. Greenpeace has also sent a letter to SGX & MAS alleging that the company misrepresented the findings of an environmental impact audit.

MNCs such as Burger King, Unilever, Kraft & Nestle have cancelled contracts with Sinar Mas & global financial institutions such as HSBC are disinvesting in them. Last month, Golden Agri's Golden VerOleum (GVL) announced a partnership with Liberia for the cultivation of palm oil & mill processing on a 220k ha concession. Apart from Golden Agri, GVL is expected to receive funding from other investors. Stock remains unchanged today despite upgrade by OSK to trading buy with $0.68 TP.