STI looks set to overcome the 9 Nov10 high of 3313 to make a new post-GFC high. However, we see the index capped comfortably below 3400 in the course of the current results season. That is, while the index may venture a little beyond the average 12-mth forward PE, it won't go much further beyond that in the absence of aggressive upward earnings revision. It is also likely that the pace of ascend that STI enjoyed over the past 2 months should soon give way to a more gradual rise that could see STI heading pass 3600 by year-end.

Results for Hutchison Port Holdings Trust in line; volume growth of 5% in FY12. FY12 DPU of 6.6UScts meets IPO guidance, boosted by one-off diversion of cash flows from capex deferrals. DPU should be sustainable at the 6.0UScts level in FY13, still implying an attractive yield of c.7.5%. We expect throughput growth of about 3-4% at the Trust's ports in FY13. Operating cash flows could stay flattish in FY13, as we expect increases in staff costs, interest expenses and taxation to erode some of the revenue gains. HPHT is leveraged to cyclical recovery in trade; maintain BUY at revised TP of US$0.85 (Prev US$ 0.88).

4Q12 results for CapitaRetail China Trust in line, driven by strong positive rental reversions. The trust is benefitting from active tenancy remixing. Its low gearing helps to drive inorganic growth. Maintain Hold, TP raised to S$1.77 (Prev S$ 1.62).

Starhill Global REITis divesting Roppongi Primo Building, a mixed use property located in Tokyo for JPY 700m (or S$9.5m). The sale price is equivalent to the latest valuation of the property and translates to an exit yield of 3.2%. Proceeds will be substantially used to repay loan in JPY. Post divestment gearing is expected to remain stable at c30%. The property's footprint is fairly small and represents 0.4% of SGREIT total portfolio. We believe that this strategic re-balancing exercise in Japan is positive for SGREIT as the manager look to re-allocate its resources more efficiently to its other main exposures of Singapore, Australia and Malaysia. Impact on our estimates is expected to be minimal at <0.1%. Maintain BUY, TP: S$0.89.

Rowsley has signed the sale and purchase agreements to acquire RSP Architects Planners & Engineers, Singapore's leading architecture practice, in an all-share deal for $187m via the issue of up to 1.25 billion Rowsley shares at 15 cents a share. It will also acquire the Iskandar-located plot of land from Malaysia's Vantage Bay in an all-share deal for $358m by issuing 2.4 billion shares. To reward existing shareholders, Rowsley said that it will issue a free bonus of two warrants for every existing share held, once all the necessary shareholder and regulatory approvals for the deals are received. Each warrant will have an exercise price of 18 cents per share.

Metech Internationalis expected to record a profit for the quarter ended 31 December 2012 as well as for the half year, despite an unprofitable first quarter, mainly due to a reorganisation of its core business, acquisition of a profitable business in China and the disposal of its loss-making European units.

Dapai Internationalis expected to record a net loss in 4Q12 and FY12, mainly attributable to a slowdown in the sales of its products during the period.

Advanced Systems Automation is expected to report a net loss for FY12 mainly due to the decrease in the Group's revenue compared to the prior financial year as a result of the weak market demand for the Group's Equipment and Equipment Contract Manufacturing Services businesses arising from the current poor global economic environment.

The Casino Regulatory Authority of Singapore (CRA) has renewed the casino licence of Genting Singapore's Resorts World at Sentosa (RWS) for a further three years. The renewal comes with additional requirements to strengthen compliance. CRA has imposed additional requirements on RWS to put in place more robust structures and processes aimed at strengthening its overall compliance of our laws and regulations.

China's services industries expanded at the fastest pace since August as gains in retailing and construction aid a recovery in the world's second-biggest economy. The non-manufacturing Purchasing Managers' Index (PMI) rose to 56.2 in January from 56.1 in December. The manufacturing PMI released on Feb 1 showed a fourth month of expansion although the reading declined to 50.4 from 50.6 in December, while HSBC said that its final PMI reading stood at 52.3, a two-year high that outperformed its preliminary figure published last week.

Source: DBSV