The rebound off STI's 3260 immediate support looks set after corporate earnings and a buyout of Dell lifted US markets. Thus far into the US results season, about 74% out of the 291 S&P 500 companies that have released results have exceeded profit projections and 66% have beaten sales estimates, this according to Bloomberg.

In Asia, Nikkei and All-Ords have actually recovered above Monday's closing level thus far. At best, STI could see a re-test of 3300 or even exceed it little at best but heading into the CNY long weekend, Monday's high at 3320 will continue to cap weekly upside.

3QFY13 results for SIA Engineering slightly below; 9MFY13 earnings growth of about 1% is not exciting. Management expects that business should remain stable in 4Q-FY13 but macro uncertainties will continue to impact the aviation industry. Nevertheless, earnings for SIE should remain resilient and benefit from the expansion in traffic in the high growth Asia-pacific region. Its secure and attractive dividend expectations have fuelled strong share price performance. SIE is trading close to historic high valuations; further re-rating is unlikely at this point. Downgrade to HOLD; TP revised up to S$4.80 (Prev S$ 4.40) to account for stronger sentiment and market yield compression.

Yangzijiang has acquired another 20% stake in Xinfu yard for US$18m or 0.6% of its market cap, bringing its ownership to 80%. We estimate the additional stake to lift FY13-14F earnings by 2-3% assuming mid single digit net margin. We will adjust our forecasts after company's results due on Feb 22 (before market). This is a positive move as Xinfu Yard, located at Taixing City of Jiangsu province, is ideal for building higher value-add, large vessels and management has plans for building very-large crude carrier (VLCC) or large containership and other larger vessel types in this yard.

1H13 results for Silverlake Axis came in ahead of our expectations due to higher margins. Recurring revenue grew 33% YoY and accounted for 50% of group revenue in 1HFY13. Our analyst has raised FY13F/14F EPS by 3% each.

We expect Silverlake Axis to continue to register double-digit growth. Maintain BUY with higher TP of S$0.58 implying 14% upside potential with ~5% yield.

Sin Hengregistered total revenue of $41.4m for 2Q FY13 (+28.9% y-o-y) and $84.4m for 1H FY13 (+32.2% y-o-y). The increase in total revenue was due to increase in both rental and trading revenue. Revenue from Equipment Rental business increased by 49.7% y-o-y to $13.5m for 2Q FY13, mainly due to expanded fleet size in the Group and the improvement in rental rates. Revenue from Trading business increased by 20.7% y-o-y to $27.9m, mainly due to higher volume of cranes traded as a result of strong demand in the regional markets. Net profit came in at $3.0m (+19.1% y-o-y) for 2Q FY13 and $6.3m (+50.8%) for 1H FY13.

Hafary Holdingsis placing up to 20m new shares at S$0.294 per share. The Placement Price represents a discount of approximately 9.9% to the last weighted average price. The estimated net proceeds of about S$5.8m will be used for redevelopment of property and for general working capital purposes.

Sinotel Technologiesis expected to record a net loss for FY12, mainly attributable to thin profit margins arising from the increase in the subcontractor costs and the costs incurred in facilitating the initial certification of the completion for the projects.

United Food Holdingsis expected to report a loss for 4Q12 mainly due to increase in soybean raw materials costs and provision for impairment costs.

Ziwo Holdings is expected to record a significant drop in its revenue and report an operating loss for FY12 due to (i) slowdown in sales activities; (ii) lower gross profit; (iii) provision for doubtful debts; and (iv) writing off of research and development expenditure.

Growth in China's services sector hit a four-month high in January. The HSBC services purchasing managers' index (PMI) rose to 54 last month, up from December's 51.7. The services sector made up 46% of China's gross domestic product in 2012. Yesterday's PMI, the last of five from China in any month, is in line with other surveys released last week that showed a stabilising Chinese economy poised for a modest recovery.

In property news, a plum, 99-year leasehold private housing site opposite the Queenstown MRT Station drew just three bidders, below market expectations of between five and 10 contestants for the plot. The top bid was, however, within expectations at $562.8m, or $883 psf ppr. This came from a consortium backed by Hong Leong Holdings and City Developments. Predictions for the top bid had ranged from $700 psf ppr to $1,100 psf ppr.

Source: DBSV