DBSV S'pore Wired Daily 8 October 2013

Date: 08/10/2013

Source  :  DBS Vickers
Stock  :  Frasers Cpt Tr       Price Target  :  2.14      |      Price Call  :  BUY
        Last Price  :  2.17      |      Upside/Downside  :  -0.03 (1.38%)

Today's Focus

ARA - Upside to $1.74 followed by $1.82 on technicals, fundamental TP $1.89

Frasers Centrepoint Trust - BUY for attractive valuations and visible long term growth drivers, TP
raised slightly to S$ 2.14

Our view that STI at c.3100 offers bargain hunt opportunities on the presumption that US does not go into default stays valid. Broad market stocks were generally weak yesterday weighed down by the volatility suffered among penny stocks. Still, underlying strength was noted among some of the stocks that DBSV research highlighted recently. Dairy farm, for example, firmed from $10.11 to $10.45 post our initiation last week. Our fundamental TP is USD11.60. Another stock that looks firm is ARA that currently sits just slightly above its base at c.$1.65. Technically, we see upside to $1.74 and $1.82 while our fundamental TP is $1.89.

Frasers Centrepoint Trust's two largest malls, Northpoint and Causeway Point, contribute c.80% to gross revenue. Rising affluence in the north as well as its sustained population growth bodes well for FCT, underscoring strong and sustainable organic rental growth going forward. FCT's acquisition of Changi City Point and possible expansion into Malaysia are expected to drive longer term growth. BUY for attractive valuations and visible long term growth drivers. Target price raised slightly to S$ 2.14 (Prev S$ 2.07).

Moody's Investors Service has changed the outlook of Mapletree Commercial Trust's Baa2 issuer rating and (P)Baa2 programme rating to positive from stable. Moody's has also changed the outlook of the Baa2 senior unsecured rating and the (P)Baa2 programme rating on Mapletree Commercial Trust Treasury to positive from stable. At the same time, Moody's has affirmed all ratings. The rating action reflects MCT's enlarged and enhanced asset quality and improved operating performance.

Boustead Singapore announced that its Energy-Related Engineering Division has recently secured approximately S$38m in contracts from the oil & gas industries globally. Over S$140m in oil & gas contracts has been secured by the division since the start of FY2014 in April. On a groupbasis, over S$300m in contracts has been secured in FY2014.Boustead Group's order book backlog has been raised to S$523m.

Mencast Holdings has been awarded a three year contract by Shell Refining Company for the provision of MRO (maintenance, repair and overhaul) related diving services such as underwater inspection and maintenance for Single Buoy Mooring and marine facilities, which includes diving vessel support.

Blumont has appointed Alexander Molyneux as its chairman designate with effect from yesterday. The move came after Mr Molyneux, in cooperation with Pacific Advisers, agreed to buy 135mil Blumont shares, which represents about 5.2% of the total shares outstanding, post rights issue. The indicative acquisition price will be 40cts/share, subject to price adjustments. The final acquisition price will be the volume weighted average price of Blumont's shares between the date of the agreement and closing of the transaction subject to a floor price of S$0.20/share and a ceiling price of S$0.60/share. Closing is expected to take place within 30 days.

GSH Corp announced that the extension of the MOI for the proposed joint planning and development of the Longhai-Singapore Marine Eco-City Project in Nanxi Wan New City Dongyuan Sector in Fujian Province, China, has expired on 6 October 2013. Due to unforeseen circumstances, there was a change in the Longhai City Government with whom the Company had been negotiating the terms of the MOI with.

Hiap Hoe intends to make a voluntary conditional offer to acquire all the issued and paid up shares in SuperBowl Holdings at S$0.75 in cash for each SuperBowl Share.

Viking Offshore and Marine is in discussions with another party on a possible investment in a private company in relation to the construction of a marine offshore asset.

Climate Holding, a special purpose vehicle in which its shareholders have a collective 43% control of Devotion Energy Group, is seeking voluntary delisting of the SGX mainboard. The exit offer price of 19 cents each represents a 23.4% premium above the last transacted price.

US markets fell as a breakthrough between lawmakers to resolve the deadlock over raising the debt ceiling stayed elusive. Unless the debt limit is raised, the US will exhaust its borrowing authority on Oct 17 and run out of funds to pay all of its bills sometime between Oct 22 and Oct 31, this according to the Congressional Budget Office. Industry Credit ratings agency Moody's Investors Service said it sees a "very low" chance the US will default on its debt payments. Meanwhile, the US 3Q results season starts mid-week with Alcoa first to report.

Source: DBSV
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Related Stocks

Chart Stock Name Last Change Volume 
Frasers Cpt Tr 2.17 -0.02 (0.91%) 1,638,300 
DairyFarm USD 8.89 +0.07 (0.79%) 402,700 
Mapletree Com Tr 1.55 -0.02 (1.27%) 5,386,300 
Boustead 0.77 -0.02 (2.53%) 310,600 
Mencast 0.098 0.00 (0.00%)
Blumont 0.002 -0.001 (33.33%) 1,000,000 
Hiap Hoe 0.88 -0.005 (0.56%) 42,500 
Viking Offshore 0.01 +0.001 (11.11%) 371,000 

Market Buzz

Stock Date Type Subject
Mapletree Com Tr 21-Jun-2018 Announcement General Announcement::Disclosure pursuant to Rule 704(31) of the Listing Manual of the SGX-ST
Boustead 25-Jun-2018 Announcement Asset Acquisitions and Disposals::Completion of Acquisition of Asia-Focused Healthcare Business

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