Sakari

Sakari: CIMB maintains Outperform with TP$2.73. High costs and low volumes were unsurprising though higher ASPs were a pleasant surprise read as pricing power despite falling coal prices. Costs rose mainly due to groundwork for future growth which was the opening of 2 new pits in Jembayan and developing pit infrastructure at Sebuku's Northern Leases. Co has stated it is seeing a bottoming of thermal coal mkts and house is of view that stock is cheap at 7x CY13 P/E vs peers' avg of 8.6x

CWT

CWT: UOB Kay Hian has Technical Buy Call with $1.40 TP. House note that the stock appears to hold above its 50-day EMA after a price retracement. The Stochastics indicator has formed a bullish crossover and turning up. The alternative exit for this long position will be if the stock closes below $1.19. House institutional research has a fundamental BUY with a TP of $1.80.

CH Offshore

CH Offshore: Business Times today highlights the co as a value play, with the following qualities – cash-rich, low P/E, solid earnings track record, dividend payout of >7%, a solid business, zero gearing, and trading at a significant discount to book value. CH Offshore, which has a fleet of fully paid-up and young anchor handling tug supply (AHTS) vessels, is 24% owned by Chuan Hup and 27% controlled by Falcon Energy. The latter bought its stake from Msia’s Scomi Marine in Feb ‘10 for 70cts/sh, a 40% premium above the current price. At half-time last Dec, the co made ~US$14m and is expected to rake in US$30-35m for the full year. DBSV said this earnings momentum will be sustained for several more years amid strong O&M activity, and steady recovery day rates for CH Offshore's AHTS vessels. DBSV also noted the co’s US$36.3m, and reckons it will rise to US$86.5m by end-FY12 and US$108.2m by FY13, driven by a vessel disposal, strong operating cash flows and no major capex plans. This was reiterated by CIMB, which noted the net cash translates to 16% of its market cap; expects CH Offshore to add >US$35m EBITDA pa for the next 3 years, coming from strong cashflow from its fully paid-up young fleet of 15 AHTS vessels (5,400 BHP to 12,340 BHP, avg age 5-6 years).Tips CH Offshore as an attractive takeover target for players who want exposure to the AHTS market. Says the co is "cheap enough at these levels” with 50% upside. Both houses also noted that the stock was trading at a significant discount to its RNAV of some 60 cts. The stock is +5.3% at $0.495.

Tuan Sing

Tuan Sing: 1Q rev at $72.0m +16.6% yoy -0.4% qoq with net profit at $8.4m 47.7% yoy. Increase was mainly from higher development property sales in Sg. More units were sold in Botanika and Mont Timah although costs increased due to showflat and mkting expenses from Seletar Park Residence launch. Rev from its 50% owned Australia hotels also increased to A$32.4m with net profit of A$2.2m much higher than prev yr’s A$0.1m. Co trades at approx 0.6x P/B

Indofood Agri

Indofood Agri: UOB Kay Hian maintains Buy with $2.00 TP. House note that 1Q12 results within expectation. Expect more CPO production in the remaining quarters. Although CPO production of 190,000 ton (+8% yoy) in 1Q12 represented 20.9% of forecast, expect full-yr production of 909,700 ton (+9% yoy) to be achievable due to: a) the low seasonal CPO production in the first quarter, b) conversion of about 15,000ha of immature area to mature area, and c) the commissioning of a 40-FFB tonne/hour CPO mill in Kalimantan in 2Q12. Expect oil-palm new planting of 10,000-15,000ha to be achievable. With the focus to expand new plantings of palm oil and sugar plantations, mgt still targeting oil-palm new planting of 10,000-15,000ha for 2012 despite oil-palm new planting of only 699ha and replanting of 531ha in 1Q12. EBITDA margin for EOF division to normalise at 3-5% for 2012 and also top sugar business to book full rev in 2H12 with the harvesting season for sugar expected to start from mid-May to October, although still expecting insignificant rev contribution from the sugar business in the near future.

Lum Chang

Lum Chang: Won the construction for condo project Ripple Bay at Pasir Ris valued at $143.7m from MCL Land. Ripple Bay will comprise of total 679 units with 7 blocks including a carpark and other condo facilities. This is expected to be completed in 1H2015. This brings co's outstanding orderbook to $1.0b. Co currently trades at 7.2x P/E, peers Lian Beng at 3.2x and Chip Eng Seng at 3.2x as well.

China Animal Healthcare

China Animal Healthcare: 1Q12 adjusted net profit of Rmb38m (+8% YoY; -31% QoQ) was below estimates on lower GP Margins and higher interest expenses that were partially mitigated by higher rev of Rmb172m. DMG note that grp’s share price performance had been lacklustre over the past year as its earnings disappointed for four out of the five quarters since 1Q11. Given a lack of upside catalysts, revise down target multiple to 3.7x FY12F EV/EBITDA (previously 4.6x), which is at -0.5STD to its historical mean of 4.6x. Nonetheless, key re-rating catalysts could come from better use of its huge cash pile of Rmb800m e.g. through special div and/or share buy-back. House Maintain BUY at lower TP of $0.28.