Today's Focus: Wilmar - Still lacking visibility; expect 2Q12 earnings to recover 36-56% q-o-q; but still 21-31% below 2Q11 level. Maintain HOLD, TP cut to S$3.90. Our analyst expects 2Q12 earnings for Wilmar to recover 36-56% q-o-q; but still 21-31% below 2Q11 level. He expects sequential recovery in M&P pretax; partly offset by seasonally-lower consumer volumes and out of-season losses in sugar processing. FY12-14F earnings trimmed by 4-8%; as M&P and consumer contributions are reduced. No near-term catalyst, HOLD call retained on limited visibility, TP cut to S$3.90 (Prev S$ 4.25).

SIA's 1Q13 net profits of S$78m (+74% y-o-y) in line with expectations, on rebound in passenger business. Average jet fuel price was lower than projected but so was passenger yield (-3% y-o-y to S 11.4 cts). Outlook remains challenging, especially for cargo. Maintain HOLD and S$10 target price (0.9x P/B).

1Q13 results for SATSwere within expectations; core profit of S$41.3m (+4%) helped by turnaround in TFK. Core operations ex-TFK witnessing costs pressures with EBIT declining by 3%. Share price has performed well recently, and will be supported by the impending payout of its final/special dividends of 21Scts, ex-date on 31 July, equating to a yield of c.7.5%. Maintain HOLD, TP adjusted slightly higher to S$2.56 (Prev S$ 2.48).

1Q13 results for Biosensors were within expectations. Biosensors gained market share in 1Q13; our analyst expects trend to continue as other products are rolled out. Gross margins have improved, but still expected to moderate eventually on price challenges. Maintain BUY, TP S$1.57.

Performance for CapitaRetail China Trust was in line with expectations; 1H forms c.53% of our analyst's full year. Steady operational outlook is supported by high occupancy and strong rental reversions. Maintain BUY, TP raised to S$1.53 (Prev S$ 1.48). FY12/13 yield of close to 7.0% remains attractive and is one of the highest amongst the Asian reits.

2Q12 results for Starhill Global REIT in line with expectations; 1H DPU forms 51% of our analyst's forecast. Improving office occupancy and Wisma Atria's asset enhancement initiative (AEI) is expected to drive earnings. Maintain BUY at a slightly higher S$0.77 TP (Prev S$ 0.75).

PEC has secured S$65m worth of projects from new and existing MNC clients. The contracts are expected to contribute to the group's earnings for current FY Jun 2013. PEC's latest wins will boost the group's orderbook which stood at S$246m as at Mar 2012 and excludes ongoing maintenance contracts.

Aussino Groupannounced a definitive agreement to buy a firm that operates petrol kiosks in Myanmar through a reverse takeover. Aussino is a bed linen maker but will privatise this part of the business and focus on energy in Myanmar through the acquisition of Myanmar-based Max Strategic Investments, which currently operates 21 fuel stations across Myanmar. Aussino said that it will acquire Max Myanmar's energy business unit by issuing about $70m worth of new shares, resulting in a change in ownership. The plan had been announced in June as a non-binding memorandum of understanding.

China Fibretechis expected to report materially lower revenue and a loss before taxation for 2Q12 as compared to 2Q11. The lower revenue was due mainly to the decrease in demand for its fabric processing services by its customers.

Roxy-Pacific has acquired the freehold residential development Harbour View Gardens for $33.0m. This translates to about $766.7 psf ppr, based on the site area of 30,745 sq ft. Under the 2008 Master Plan, the site is zoned for "residential" use, with a gross plot ratio of 1.4.

The Monetary Authority of Singapore (MAS) said that if global conditions deteriorate significantly, Singapore could be hit with a double whammy of growth slipping below 1 per cent coupled with high inflation as costs remain elevated. Housing and private transport costs are likely to remain high and the MAS said it is narrowing the forecast range for inflation to 4-4.5% in 2012 from 3.5- 4.5% previously. Core inflation remains unchanged at 2.5-3%.

A plot of land gazetted for good class bungalows (GCBs) in the Holland Rise area has been put up for sale by tender, with a target selling price of between $60m and $65m. This represents a price of between $1,132 and $1,226 psf for the sprawling vacant 53,000-sq-ft plot. Also up for grabs is a 20,133-sq-ft freehold industrial site at New Industrial Road zoned Business 1, and a former cinema space at Sultan Plaza.

China's economy is set for a soft landing even as global headwinds increase, the International Monetary Fund (IMF) said in a report that urged further reform and currency appreciation to rebalance growth and reduce risks. The report said economic reforms so far had substantially reduced external imbalances, but at the cost of significant domestic imbalances fuelled by its investment-driven growth model.

Source: DBS