Hi-P should see sustained ramp of production activities now that iPhone 5 is finally launched. Apple launched the long awaited iPhone 5, a substantially upgraded version of the iPhone last night. We see this as positive for Hi-P, which has been prepping up for the expected launch since 1H12, and finally started to ramp up production in July. Now that the phone is launched, we can expect the ramp to hit critical mass in 4Q12. Hence, we expect earnings to be substantially skewed in the last quarter. Our analyst's projection is for S$18m net profit in 3Q12 and S$34m in 4Q12. Overall, FY12F earnings is expected to grow 16% to S$52m, with further earnings upside in FY13F to S$74m if the iPhone reception is positive and momentum could continue into 2013. No change to earnings estimates for now. Maintain BUY and TP of S$1.06.

SembCorp Industrieswill be investing RMB326.6m (c.S$64.2m) to develop centralised utilities facilities to serve existing and new customers in the Fushun Petrochemical and Fine Chemical Park. SCI has secured a concession agreement for the exclusive provision of service corridor network in the industrial park. For the first phase of development, SCI will invest RMB76m (c.S$14.9m) to develop a 3km service corridor network to be completed in 1Q2013.

Separately, SCI will acquire a portfolio of existing water assets from the local government to develop a new industrial water treatment plant and a 3.6km water pipeline at a total investment of RMB250.6m (c.S$49.2m). These developments add incremental benefits to the firm's growing presence in China (Shenyang and Xinmin) but are not expected to have a material financial impact near term because it takes time to build critical mass for the services provided. In terms of contribution, China Utilities accounts for just slightly over 5% of SCI's Utilities profits and 3% of group's earnings. Hence, no change to forecast and maintain BUY, TP: S$6.00 for now.

Yanlord Land achieved Rmb1.31bn sales in August, touching the high end of expectations, with 71% of sales target locked-in. With new launches in Nanjing, Tianjin and Shanghai, our analyst believes Yanlord's September sales will be decent. For September-December, monthly sales of Rmb866m would be enough to meet the sales target (vs its YTD average monthly sales of Rmb1.1bn). Maintain HOLD, TP S$1.24.

Mr Oei Hong Leong has become a substantial shareholder of private education provider Raffles Education. Mr Oei bought 11.55m shares in an open market purchase at 32.6 cents apiece, raising his direct 3.51% stake to 4.86%. Including a deemed stake of 1.28%, his holding is now 6.14%.

World Precisionrecently secured three orders with an aggregate value of RMB10.0m to deliver 28 units of mid-to-high end stamping machines to home appliance and auto sectors. The group believes that the recent order wins were a result of the various economic stimulus measures by China's central and provincial governments.

GuocoLand has sold about 40 units or 10% of the total 381 units in its freehold Leedon Residence condo in the Holland Road area, according to Business Times. It began a private preview of the project in mid-August at an average price of $2,000 psf. The developer is not offering any discount or stamp duty absorption.

US markets rose after Germany's constitutional court cleared the way for the ESM. Investors also bet that the FED will announce further stimulus at tonight's FOMC meeting. Still, we note that financial markets have been pricing in the possibility of more QE in recent weeks ' i.e. little upside surprise factor.

Source: DBSV