FY12 results for Keppel Corp in line; O&M margins have stabilised. On top of a final cash DPS of 27.0 Scts declared, KEP is also rewarding shareholders with a proposed 27.4 Scts dividend-in-specie of Keppel REIT units, on the basis of one unit for every five KEP shares held. This will bring FY12 cash dividends to 45.0 Scts (FY11: 43.0 Scts), and total DPS to 72.4 Scts (an attractive yield of 6.4%), a record for the group. O&M orderbook stood at S$12.8bn as of end FY12. Amid competition from Chinese and Korean yards, we believe KEP remains well positioned given its established track record, global yard network, and innovative solutions. Maintain BUY, TP raised to S$13.00 (Prev S$12.65).

Starhill Global REITwill be acquiring the Plaza Arcade Building, a property located in Perth, for A$48.0m. The acquisition will be funded by a combination of debt and cash. The purchase price represents yield of 7.8% and is expected to lift DPU by 1.9%. Post acquisition, gearing is expected to increase marginally from 31.2% to 32% and will contribute about 3% to SGReit's gross revenue.

Yangzijiangannounced that Seaspan has exercised options for four 10k TEU containerships totaling US$360m. Including the seven units of 10k TEU orders received since 8 June 2011, Yangzijiang has a total of 11 vessels to Seaspan from year 2014 to 2015. Seaspan is left with 14 options for identical vessels unexercised. Contract price of US$90m each is lower than the US$100m contracted in 2011 but in line with current market price. Margins are expected to be mid single digit with the lower newbuild prices. (Maintain HOLD, TP: S$1.20).

Mermaid Maritimehas been awarded another subsea construction services contract in China with an existing client, China Offshore Oil Engineering (COOEC). The contract has potential value of US$30m over a six month period and is another accomplishment in a series of recent contract awards.

Intraco is expected to incur a loss for FY Dec 12. The Board considers it prudent to make provisions for doubtful debts and write-down in value of inventory.

Chip Eng Seng has placed the top bid for a mixed commercial and residential development site at the corner of Yishun Ring Road and Yishun Avenue 9. Its bid of $212.1m, translating to $794.44 psf ppr, was the highest of 13 bids received at the state tender yesterday. This was 9.5% more than the second highest offer of $193.8m, or $725.81 psf ppr, from a joint venture between Far East Organization and its listed vehicle, Far East Orchard.

Jiutian Chemicalhas entered into a placement agreement for up to 163m new shares at an issue price of S$0.0638 per share. The Placement Price represents a discount of approximately 9.5% to the weighted average price on 22 Jan 13. The estimated net proceeds of about S$10.2m will be utilised for funding of investments and acquisitions.

China's manufacturing expanded at its fastest clip in two years, bolstering hopes that economic growth will accelerate for a second straight quarter. The preliminary reading of HSBC Purchasing Managers' Index was 51.9 in January. That compares with the 51.5 final reading for December and the 51.7 market estimate, after falling for 12 consecutive months.

US stocks markets overcame a slump in Apple shares to end higher, lifted by the benign weekly jobless claims (actual 330k, consensus 355k) and the overall positive results season. Thus far, about 75%of the 134 companies in the S&P 500 that have released results have exceeded profit projections, this according to Bloomberg. Sentiment was also lifted by the firmer-than-expected January China flash PMI to 51.9 from 51.5 in December.

Source: DBSV