The Dow rose into all-time high territory led by cyclical stocks on optimism about continued central bank stimulus and a better-than-expected ISM non-manufacturing number (actual 56, consensus 55). At the same time, China maintained its 7.5% growth target for the year, which also triggered a relief rally yesterday. This is the heavy data week for US that culminate with February job numbers. Consensus expects non-farm payroll figure of 160k with the unemployment rate staying at 7.9%.

DBSV Research is upgrading Hi-P International to HOLD on valuation. FY12 earnings hit a new low. Management expects both revenue and profit to improve in FY13 but they have guided for a loss in 1Q13 as seasonally lower volumes and lower Apple orders are unlikely to cover a higher cost base. We expect breakeven in 1H13 and a steep ramp up in 2H13. Overall, FY13 earnings are expected to rise, but outlook is still weak. We have cut FY13F earnings by 32% to factor in lower margin assumptions. Growth drivers are Blackberry launches, better sales mix and further cost restructuring. We believe Hi-P's share price reflects most of the downside risk after correcting 20% since our downgrade last Oct. But, it is too early to turn positive as earnings have yet to stabilise. We have lifted TP to S$0.71 (Prev S$ 0.70) as we roll over to 1x FY13 P/BV.

Structural steel specialist TTJ Holdings has clinched $20m worth of new contracts in Singapore. This lifted its order book to $182m, the bulk of which it expects to substantially complete in FY2013 and FY2014. The latest contracts will see the group supply structural steelworks and civil defence shelter doors for the Tampines East Station on the Downtown Line 3 and other projects.

STATS ChipPAC is issuing its concurrent offering of US$255m senior notes in a private placement at par. This offering is concurrent to an offer of new notes in exchange for the group's outstanding US$600m principal amount of 7.5% senior notes due in 2015. Like the exchange offer, the concurrent offer notes are due in 2018, with interest of 4.5% per annum payable semi-annually. The notes are redeemable at the company's option from March 20, 2016.

The possibility of CapitaLand divesting its investment in Australand Property Group has attracted several parties, who have expressed an interest in either the whole or parts of the Australian subsidiary's business. Australand said that it is making certain information available to selected parties to determine whether any proposal can be developed. But both Australand and CapitaLand emphasised that the expression of interest by the parties did not mean that any definitive proposal was forthcoming. CapitaLand's strategic review of its investment in 59.3%-owned Australand is part of a broader move unveiled by the property giant earlier this year to streamline the group's business and focus on China and Singapore.

China's securities regulator is set to relax rules to allow more foreign investors to put their offshore renminbi holdings into the A-share market. Market observers expect that a fresh wave of RMB funds, including RMB200 billion (S$40 billion) worth of unused quotas in Hong Kong, will flow into the domestic liquidity pool and help sustain the A-share market's turnaround.

Source: DBSV