Maintain BUY with TP of S$0.24 for close to 30% earnings CAGR over FY11-13.

The O&M sector continues to be underpinned by contract flows. Nam Cheong's US$43.8m contract win follows Keppel Corp's US$315m contract finalization with Floatel Internaional. Nam Cheong has secured sale contracts for three vessels ' 2 AHTS and 1 PSV - for a total consideration of US$43.8m. These vessels are part of Nam Cheong's build-to-stock series models and are being built at one of its partner yards in China. With the sale of these 3 vessels, Nam Cheong's orderbook has expanded to RM912m, consisting of 15 vessels. Of the 12 vessels scheduled to be completed in 2H12 (6 were delivered in 1H12), we reckon only 1 AHTS vessel remains unsold as of now. The 2 AHTS were sold to repeat customers while the sale of the PSV marks the penetration of a new offshore oil & gas market for Nam Cheong, and expands future geographical scope. These sale contracts also further strengthen Nam Cheong's track record of being able to sell its built-to-stock vessels well ahead of completion. As highlighted earlier, Nam Cheong's earnings will be stronger in 2H12, as more vessels are delivered during this period. Maintain BUY with TP of S$0.24 for close to 30% earnings CAGR over FY11-13.

HLN Technologiesproposes to sell its stake in Tianjin Swan Lake project for S$14.1m. On top of the profit guarantee in FY2011 of S$1.9m, the proposed sale included FY2012 pro-rated profit of approximately S$2.0m, bringing the total to S$3.9m. With the return on its investment, the Board would be considering and recommending a one-time special dividend payment to reward its shareholders. The proposed disposal is expected to be completed by the first quarter of 2013.

RH Petrogas has received approval from China National Petroleum Corporation (CNPC) for the revised Overall Development Plan (ODP) with regards to the phased development of the Yongping Field in the Fuyu 1 Block in Jilin Province, China. CNPC will submit the ODP for final government approval from the National Development and Reform Commission (NDRC) and the approval is expected to be obtained in the fourth quarter of 2012. Field development and commercial production will commence immediately after  NDRC approval.

Hanwell, Intraco's controlling shareholder with a stake of 29.89%, has accepted tycoon Oei Hong Leong's $20.6m offer (70 cents a share) for its stake in Intraco and is working towards finalising the sale-and-purchase agreement. Hanwell's latest move may mark the beginning of the end of a bidding war for its Intraco stake. TH Investments ' a privately owned investment vehicle for the family that runs Tat Hong Holdings - had offered 68 cents (up from 62 cents) a share for that stake.

Passenger traffic through Changi Airport in July rose 4.5% y-o-y to 4.36m. Air traffic movements grew in tandem, with 27,100 landings and take-offs or 4.6% more than a year ago. Traffic to and from the Middle East, south-west Pacific and the Americas remained strong and recorded double-digit growth. However, the growth in South-east Asia and North-east Asia traffic was weaker and in the low single digits. These two regions account for about 70% of total passenger traffic at Changi. On the cargo front, Changi handled 152,900 tonnes of shipments last month, a decline of 4.5% y-o-y. On a rolling 12-month basis, passenger traffic and aircraft movements increased to 49.3m (up 10.3% y-o-y) and 318,000 (up 12%) respectively. Airfreight movements were stable at 1.85m tonnes for the 12-month period. The airport is on target to record total passenger traffic of slightly over 50m for 2012.

Casino regulator has fined Marina Bay Sands and Resorts World Sentosa for disciplinary for breach of social safeguard requirements. Marina Bay Sands, run by Las Vegas Sands Corp, was fined S$357,500 while Resorts World Sentosa, operated by Genting Singapore, was asked to pay S$140,000 in fines.

In property news, a 30-year leasehold industrial site on Bukit Batok Street 23 drew four bids, with the top bid coming in at $32.3m, or $80.03 psf ppr. The top bid, submitted by Soilbuild Group, beat the second-highest bid of $26.3m or $65.06 psf ppr.

US markets pared early session losses after the FED minutes showed policy makers favoured more stimuli. Many Federal Reserve policy makers said additional stimulus would probably be needed soon unless the economy shows signs of a durable pickup, this according to the record of the most recent FOMC meeting. Investors' focus is likely to stay tune on the details of Greece's bailout package to be discussed this week and the FED's Jackson Hole summit next Friday. In China, the HSBC flash manufacturing PMI will be released this morning.

Source: DBSV