In a major policy shift in planning and development strategy, the Singapore Government will now invest and build housing and public transport infrastructure well ahead of demand. Complaints about overcrowding, congestion and the long wait for HDB flats prompted the switch, this according to National Development Minister Khaw Boon Wan.

We had recently highlighted that an anticipated acceleration in infrastructure spending, the need to 'build more & build faster' will underpin construction related stocks. We stick to this view. Our construction related picks are Tat Hong, Tiong Seng, Sin Heng and Pan-United. Other construction related plays are UE E&C, Engro Corp and Lian Beng. One of Tiong Seng's niche areas is its pre-casting services and their automated pre-fab hub, which is positioned to benefit from public housing building.

2Q13 earnings for ASL Marine in line, +40% y-o-y; gross margins continue to impress. The slow YTD order wins is not a concern; we expect back-end loaded wins as yard capacity frees up. While 1H FY13 forms 40% of our full year forecast, we keep our numbers intact as we expect a stronger 2H13. Maintain BUY, TP S$0.90. ASL remains firmly on track to post a strong 52% earnings recovery in FY13F, supported by its S$528m shipbuilding orderbook which provides visibility up to end FY14. Technically, the stock has re-based at $0.73 (support) over the past 3 weeks and looks ready to resume its steady rising trend for a re-test of the post-GPC high at $0.795. Based on Fibonacci projection, a rise above this level should lift the stock to $0.95 in coming month(s).

DPU of 2.09 Scts for Far East Hospitality Trust is 4.5% above forecasts; NAV uplift to S$0.97. Portfolio renewal is in progress, with further refurbishment plans to result in uplift in average daily rates. BUY maintained, TP S$1.13 (Prev S$ 1.09). We continue to see further upside upon the completion of its planned purchase of Grand Rendezvous Singapore, which we have not factored into our numbers. The stock offers a prospective yield of about 6%.

Goodpack posted 2QFY13 earnings of US$11.1m (+4% y-o-y), in line with our expectations. We expect a stronger 2HFY13, tapping into recovery in rubber trade volumes. The Automotive sector will support growth in the medium term. Maintain HOLD with TP S$1.95.

Cache Logistics Trusthas signed an option to acquire a ramp-up warehouse for S$55.2m at 15 Gul Way. Initial yield of 8.7% is higher than Cache's implied yields of c6.5%, which means that the acquisition will be accretive to earnings. With this acquisition, Cache will benefit from a larger and more diversified portfolio of warehouses in Singapore. Cache also announced that they have obtained the long anticipated Baa3 rating from Moody's. Given a visible acquisition pipeline from its sponsor, the credit rating will provide the trust with added financial capacity and flexibility to head above the current 35% limit. Maintain BUY, TP S$1.40. Cache's portfolio remains stable, with minimal renewals over next 2 years.

Trek 2000 is presently conducting a risk management review of its Intellectual Property (IP) assets in view of the rapid technological changes. Based on an initial assessment, this exercise is likely to result in a downward revaluation in the Company's IP assets, which may impact the Company's financial results, including the likelihood of reporting a loss for FY12.

Boustead Singaporehas been awarded a S$70m contract to design and build an integrated ramp-up logistics and office facility to be located at Tampines LogisPark in Singapore. The latest contract has raised the Group's order book backlog to S$422m.

UE E&C has been awarded the tender for S$35.2m Nominated Sub-Contract for Electrical Installation Works to the Proposed Residential/Commercial Development for the Waterway Point and Watertown Project at Punggol Central/Punggol Walk.

Pteris Global is proposing to acquire Shenzhen CIMC-TianDa Airport Support for S$112m. CIMC-TianDa Airport Support is a company incorporated in Shenzhen, PRC and is principally involved in the design, development, manufacture, installation and maintenance of passenger boarding bridges, ground support equipment and baggage handling systems.

Midas announced that its joint venture company, Nanjing SR Puzhen Rail Transport, has won a RMB710m metro contract. This contract is expected to contribute positively to the Group's financial performance for the 2014 and 2015 financial years.

Viz Branz is withdrawing the proposed 1 for 1 bonus issue that was announced in May last year.

Source: DBSV