Noble Group - Likely bottomed out on Aug 6, technical objective tweaked slightly higher to $1.34 (from $1.28) and $1.53 (from $1.48) in coming month(s)

Noble Group's 2Q12 core profit of US$145m (+7% q-o-q; +10% y-o-y) was above our analyst's estimate of US$89-107m. Energy outperformed, backed by growth in the US business and higher coal volumes. FY12F-14F core earnings were raised by 4-9% on higher Energy contribution. Proceeds of c.US$788m (capital and loan repayment from Gloucester) is expected to come in over next six months. We recommend investors BUY ahead of these positive events; TP unchanged at S$1.30. Technically, we continue to stay positive on the stock.

With reference to our report titled "Don't Despair" on August 6, we sought upside potential to $1.28 (23.6% upward and $1.48 based on the assumption that the stock may still experience one further decline to $0.96-1 before the rally starts. However, it is increasingly likely that the stock may already have bottomed out at $1.035 on July 25. Based on this, our upside technical objective is lifted slightly higher to $1.34 (23.6% upward retracement) and $1.53 (38.2% upward retracement).

2Q12 profit for Bumitama Agri came in at Rp191.5bn (+1% q-o-q; +8% y-o-y), in line on an annualised basis. CPO output rose by strong 15% q-o-q and 18% y-o-y due to maturing of young trees. With better profitability and proceeds from IPO, Bumitama's net debt/equity fell to 26% from 66%. The group is well positioned for more land bank acquisitions. We expect a stronger 2H12 ahead. Maintain BUY, TP S$1.35. Bumitama is our top sector pick despite expectations of near term moderation in CPO prices. Strong 20% p.a. growth in CPO output over the next 3 years should translate to earnings CAGR of 28% versus FY12 PE of only 13.1x. The counter remains undervalued for its growth outlook. Technically, $1 or just a tat higher provides good accumulate opportunity.

1Q13 earnings for Tat Hong were above expectations on strong demand in distribution and crane rentals. Our analyst believes that strong demand for cranes over the next two years across Asean, Australia and China will ultimately drive strong earnings, supported by regional construction pipeline. FY13F/FY14F earnings were raised by 16%/12%; upgrade to Buy with higher TP of S$1.31 (Prev S$ 1.13).

ComfortDelgro's 2Q12 results were within expectations. Weakness in Singapore bus business is mitigated by other geographical and business divisions. An interim dividend of 2.9Scts was declared for 1H12 (1H11: 2.7 Scts). With its low net gearing of just 4% as of June 2012, we believe the group has the ability to further raise its payout ratio from 53% in FY11. We believe this should provide a boost to share price. Maintain BUY, TP at S$1.86. We continue to like CD for its stable earnings growth profile, geographical diversification despite challenges for its bus business in Singapore.

SingTel reported 1Q13 results this morning. Underlying net profit of S$850m (-2.6% YoY) was 6-7% below consensus expectations. Optus' weakness was the key surprise due to cut in mobile termination rates and competitive plans in the market. Optus maintains its stable EBITDA guidance for FY13F. HOLD with unchanged TP of S$3.25. Near-term cost-pressures from mobile advertising is another concern.

2Q12 net profit of RM22.9m for Nam Cheong was within estimates. No change to Nam Cheong's shipbuilding programme, with strong growth potential from higher PSV sales in FY13. 2H12 earnings should be seasonally stronger; Maintain BUY with S$0.24 TP.

STX OSV's 2Q12 net profit of NOK278m (up 1% y-o-y) was in line with expectations. 1H12 net profit of NOK548m makes up 51% of our analyst's full year estimates. Operating margin of 13% was slightly lower than our estimate of 14%, but still within range. Total order intake YTD in 2012 amounts to NOK7.3bn, on track to meet our new order win estimate of NOK10.0bn in FY12. The group has declared a special interim dividend of 13Scts. At current prices, this implies a yield of 8.4%. Maintain BUY. Will provide more details after briefing today.

Excluding one-off S$10m gain, CSE Global's 2Q12 core profit of S$11.1m was broadly in line with our S$12m estimate. New order win of S$115m was also inline. CSE has declared a surprise interim dividend of 1.5 Scts, first time ever. Our current recommendation is BUY with S$0.90 TP. Will provide more details after briefing today.

2Q12 results for Banyan Tree Holdings were supported by an improvement in hotel operations and property sales. Forward bookings were slightly higher than 1Q12 but Thailand's outlook remains flattish. Maintain HOLD, TP revised lower to S$0.68 (Prev S$ 0.77).

Tiger Airways'load factor in Australia improved for the 4th consecutive month, and is now up to 84% from 82% in June, and 74-75% in April-May. The higher carriage and load factors bode well for improved operating results from Tiger Australia in coming quarters as it ramps up to pre-grounding scale by October 2012, and utilization of aircraft improves. We continue to believe that the carrier will move steadily towards profitability and we expect the group as a whole to be profitable by the last quarter of CY2012 (3QFY13). Maintain BUY and S$0.92 TP. Current level is a good accumulate opportunity for the anticipated turnaround story. We maintain our positive technical view for upside to $0.93 followed by $1.14 for the stock (refer to reported titled "Don't Despair" on August 6) in the months ahead.

LMA Internationalhad entered into an agreement with Teleflex to sell the group's assets at a price equivalent to approximately S$0.62 per share being around 50% premium over yesterday's closing price. If the sale is approved by shareholders, it is the Board's intention to dissolve LMA and distribute the proceeds less certain costs to be borne by the group.

Thai Beverage has raised its stake in F&N to 26.2% from 24.1%. The move will likely give ThaiBev a greater say in F&N's response to Heineken's US$4.06 bn bid to acquire F&N's stake in Asia Pacific Breweries.

Cosco Corporationhas secured a US$170m contract from Talland Navigation, a subsidiary of Foresight, to build (1) one unit Jackup Drilling Rig. The rig is scheduled to be delivered in the first quarter of 2015.

QingMei Groupexpects to incur a loss and report lower sales for 4Q FY12 as compared with the same corresponding period in last year, due to factors including excessive channel inventory for the downstream business, which together with the current global economic downturn, has impacted the Group's overall sales orders. The management would also expect difficult and challenging times ahead, for at least 2 more quarters.

Source: DBSV