OKP

OKP: DBSV initiates coverage with buy & TP of $0.70. Notes that the Co. is a key beneficiary of steady investments in public transport infrastructure projects in SG with net order book in access of $200m vs rev 129m FY09. Expect steady FY 09-11 net profit CAGR of 12%. Co. has net cash of $0.33 and secure dividend yield of 6.3%....

DBSV has been tipping infrastructure/construction plays as one of their most bullish sector, recommending recently Tiong Seng, Pan United and Tat Hong as their top picks within the construction industry.

F&N

F&N: property unit Frasers Centrepoint and Far East have jointly put in top bid $151.4m ($335 psf ppr) for a residential site at junction of Pasir Ris Drive 3 and 4. Project to have 400-450 units, expected to be completed in 5 yrs. Breakeven cost est at $650-$680 psf, while selling price est at $800 psf, slightly higher vs recently transacted prices in the vicinity - NV residences ($720-840 psf), Oasis@Elias (99Y, $650-740 psf), Bluewaters2 (999Y, $800-850 psf)…

Deutsche views acquisition as positive, expects it to be mildly NAV accretive. Raises target to $6.75 from $6.55, maintains Buy. Stock makes new all-time high of $6.58 in early trade.

SATS

SATS: wins contract to provide ramp and baggage handling services for SIA’s 7 daily pax flights at HK Int’l Airport from 1 Oct. contract size is small but underscores SATS’ strategy to serve major customers at key hubs. Of note, SATS’ other customers such as Tiger Air, Lion Air, Cathay Pacific, have increased frequencies with more flights to cities such as BKK, HK, Jakarta, KL. Deutsche reiterates Buy with $3.20 target.

SIA Engine

SIA Engine: Kim Eng maintains buy with TP of $5.00 based of historical peak of 20X PE. Note that airlines are finally catching up and expanding capacity faster, with travel volumes growing 4% and capacity 6% Ytd, citing accelerating growth in past few mths even as traffic growth came off…

Adds that SIAE business traditionally lags the rest of the airline industry, and business should remain robust, with stable traffic volumes sustaining its line maintenance business while faster expansion in capacity should boost its heavy maintenance business. Recommends that in the money investors may want to use further strength to cash out, as stock approaches previous peak of $5.

Centraland

Centraland: Thinly traded counter, could see some interests today after Private Equity Grp Warbug Pincus invested $128m in 2 of grp’s China mall projects, taking 31.7% stake in both projects, which both co. will jointly develop & manage. Tie up gives Warburg Pincus option to invest additional $128m in projects within 30 mths…..

Investment is expected to substantially boost the Chinese property developer fin. position, who has a cash hoard worth $104m. Both parties are also in talks for a 2nd investment by Warburg Pincus in an existing wholesale mall for automobile parts and building materials.…

Initial resistance tipped at $0.50 and 52 week high of $0.55. We note however that valuations for the counter appears rich, currently trading at 3.1X PB vs Debao Property of 1.1X & ChinaNTown at 1.2X.

Yanlord

Yanlord replenishes landbank, acquiring 180k sqm GFA prime residential site in Pudong, Shanghai for Rmb2.9bn or Rmb 16,100psm)> This follows a flurry of recent land acqns by other developers in Shanghai such as UOL & Guocoland.
No stock ratings changes this morning.

SG Market

SG Market: Spore shares may consolidate amid lack of leads with lower US close overnight. HK, China markets shut for public holidays today. Any upside for STI likely to be limited, capped at recent high of 3125; support at 3069. The 4Q may start on a quiet note with prices bound within a tight range ahead of the 3Q earnings season beg in mid-Oct. After the strong Sep rally, companies will have to deliver solid results & keep up positive guidance to drive shares higher.