YangZijiang

YangZijiang: Announced that it had entered six shipbuilding contracts in Mar11 with contract value of US$214.2m. Contracts comprise two 82,000 and two 10,000 DWT bulk carriers and two 4,800 TEU container ships. Vessels scheduled for delivery from 2012 to 2013. In dry bulk segment, grp sees end users in China investing to build up vessel fleet and lower reliance on charterers…..

Deutsche note that current low BDI level, if sustained, could prompt demolitions to accelerate in coming years. Expect 30-yr high dry bulk demolitions in 2011 and 2012. Apart from high demolition tonnage, expect consolidation within the sector to further reduce supply and benefit large shipyards. Note that small shipyards are under threat of being taken over or going bankrupt as they face order cancellations, high gearing, and poor cash flows…..

YTD, YZJ has secured 14 shipbuilding contracts totaling US$512.3m. House FY11-13E new order forecasts are US$2.5b, US$3b and US$3.5b respectively. Add that grp had signed a LOI with Seaspan Corp to build 22 units of 10,000 TEU containerships worth over US$2b. If LOIs are confirmed, YZJ's new orders YTD could total around US$2.5b. CIMB and Deutsche has Buy Call on grp with TP of $2.69 and $2.31 respectively.

Oxley

Oxley: 55% subsi Oxley Ascend Realty has won a tender from JTC for a land parcel at Ubi Rd 1/Ave 4 at purchase price of $72.2m. The site is 12.4sqm with lease term of 60 yrs and is zoned for "Business 1" development for industrial purposes…

The acq will be funded by bank borrowings and internal resources. Co has generally focused on “shoebox” residential apts but has only recently listed. Co's acq at $72.2m is approx 13.5% of co's current mkt cap.

SoundGlobal

SoundGlobal: Won a project for wastewater treatment in Henan for Anyang Industrial Dev Zone. Project is a BOT project with capacity of 50k tons per day and cost about Rmb120m with tariff of Rmb1.44 per ton. When completed, the BOT plant has a concession period of 25 years. Co has a fwd P/E of 12.9x compared to Hyflux at 18.9x

UE E&C

UE E&C: Sale of two 3-storey shophouses in Tanjong Pagar for $10.1m. Both properties have total land area of 3.1k sqft and leasehold period of 99 yrs and was valued at $7.5m in 31 Dec 2010. Co will recognise net gain of $2.5m from sale. Co trades at current P/B of 1.1x

TigerAir

TigerAir: Good operating results out for Mar 2011. For the month, 576k passengers flew with co, +18%yoy and load improved by 1% pt to 85%. On a full yr operating basis Apr 2010 to Mar 2011, co carried 6.0m passengers +23%yoy and load improve by 1% pt from 86%...

Co looks to launch daily services from Manila (Clark) and Macau from 27 May 2011 following its partnership with SEAIR and increase seat capacity by 41% through increased frequencies to major SEA cities and Chennai.

FreightLinks

FreightLinks: Pursuant to announcement on 31 Jan 2011, co has acquired 7.2m convertible pref shares (24.0% stake) in Yongxing Coal for $17.6m. Yongxing has 5 coal mines in operation in Lijiang and 6th to commence operation in 2011 with a supply contract to a state-owned enterprise. The NTA of the stake was approx $7.5m and net profit attributable to the stake was $4.2m for 2009. This represents a diversification from its core biz. Freightlinks trades at 9.2x current P/E vs a hist avg of 11.3x

ARA

ARA: Macq has Outperform on co with TP$1.90 after announcement of 30% stake in Hui Xian REIT’s mgr. The IPO is expected to have a mkt cap of $5.0b to $5.4b and offer a yield of 4.00-4.26%...

The mgr will receive a base fee of 0.3% p.a of property value and 3.0% of NPI from the REIT. House estimates income will raise FY12 forecasts by 2.9%. CIMB also maintains Outperform with TP$2.08 and raise EPS estimates by 3-5% as well. CIMB expects the closing of ADF II and possible bonus shares to be further catalysts.