Ascendas Hospitality Trust - Poised to deliver growth; initiate coverage with BUY recommendation and target price of S$ 0.95.

DBSV Research is initiating coverage on Ascendas Hospitality Trust (A-HTRUST) with a BUY recommendation and target price of S$ 0.95. As the first hospitality trust with both a REIT and an active business trust structure, A-HTRUST offers investors a higher beta proxy to major source of consumption growth in Asia ' corporate and leisure travel. A-HTRUST has a well-located portfolio spanning key growth markets in the Asia Pacific. Its collaboration with Accor Asia Pacific, a well- known international hotel operator, will help to rejuvenate and propel its initial portfolio to new heights, in addition to offering a potential pipeline for growth. A-HTRUST offers an attractive FYP13F-14F yield of close to 7.8-8.1%, c.200 bps above the S-REIT sector.

2Q12 results for IHH Healthcare within expectations; net profit surged 426% to RM403.5m due to medical suite sales, Acibadem consolidation and valuation gains on investment properties. 1H12 core profits forms 49% of FY12F (ex. Medical suites). Promising start for Novena hospital; we expect positive EBITDA by 2H13. Maintain BUY, TP: S$1.38 (RM3.44). We reiterate our view that IHH is an attractive healthcare play in the region with a robust growth profile, offering investors a unique and diverse geographical exposure. While trading at a premium to peers, we believe this could be justified given that net profit growth is expected to be robust, with projected CAGR (FY11 ' 14F) of 55%.

Olam's FY12 core profit of S$48.2m (-45% y-o-y, -39% q-o-q) was significantly below our expectations. Weak Industrial Raw Materials and jump in overheads hit FY12 profits. Olam expects challenging market conditions to persist in the near term (in particular cotton, for at least another 6 months). FY13F-15F earnings cut by 9-14% on lower margin outlook. Maintain HOLD, TP lowered to S$1.80 from S$2.00.

Singapore Exchangefurther enhanced its ties with China by entering into a Listing Memorandum of Understanding with the Shandong Finance Office. Under the MOU, SGX and the Shandong Finance Office will co-operate to develop communication channels and foster continued ties in areasincluding information exchange and the listing of more Shandong companies on SGX. Shandong Finance Office is the government body which drives the financial development of the province and helps Shandong businesses in their structuring and fund-raising plans.

Mapletree Logistics Trust announced the acquisition of Hyundai Logistics Centre in South Korea for KRW 22.5bn (S$24.5m) at an estimated initial yield of 9.0%. The acquisition comprises of 2 blocks of 3-storey dry warehouses in Gyeonggi-do, one of the largest logistics cluster in South Korea. The property is leased to E-Land World and Korea Environment & Resources Corporation (ENVICO) who are understood to be reputable companies with strong credit standing. In conjunction with the acquisition, MLT has also announced the divestment of 30 Woodlands Loop in Singapore for S$15.5m. The sale price represents a 50% and 41% premium above its purchase price and latest valuation. We estimate exit yield is estimated to be c 5.8%. The above deals are expected to be accretive to unitholders distributions when completed. In terms of financial impact, while yield enhancing, it is likely to be minimal at <1% of net property income and distributions. Gearing is also expected to remain stable at c37%. No change to BUY call and TP of S$1.14. Stock offers prospective yields of close to c 6.3-6.5%.

Mr Oei Hong Leong has called off talks to buy a substantial stake in Intraco after he failed to secure promises of support from the major shareholders of seller Hanwell Holdings, according to BT. This will deprive Intraco shareholders of a potential 70 cent-per-share general offer from Mr Oei, who has said that he would offer to take the company private if he could acquire the Hanwell bloc.

LMA Internationalhas been awarded a three-year Sole Supply Agreement for its LMA laryngeal mask range of products with the Ramsay Healthcare Group in Australia. The Ramsay Healthcare Group is the largest provider of private healthcare in Australia with over 50 private hospitals.

Loyz Energy has inked a milestone exploration and production (E&P) deal in US which could potentially contribute quickly to earnings and cash flow. It has signed an agreement to participate in drilling of 80 onshore wells in resource-rich plains of Colorado & North Dakota, in return for 20% share of net revenue Interest which is convertible into working Interest. Loyz and Rex Oil & Gas (a major technology partner of Loyz Energy) will provide 2 rigs for the project.

Pteris Global is placing a strategic stake to an entity within Chinese conglomerate China International Marine Containers' (CIMC) group of companies. The placement involves the placing of 82.2m new shares at S$0.13 per share. The issue price represents an approximate 14.8% premium over the last average traded price. Following the completion of the placement, CIMC will hold approximately 14.99% of the enlarged issued share capital of Pteris Global and will be invited to take up one board seat.

Sunpower has secured a RMB24.5m new contract from a subsidiary of Shanghai-listed petroleum gas refinery Zhejiang Haiyue. New order comes hot on the heels after RMB39.9m contract from the same customer in June 2012.

Source: DBSV