Our analyst has raised FY13/14F headline net profit for Ezion by 15%/6% for 1) the latest liftboat charter, 2) the marine supply base, and 3) disposal of its OMSA JV stake and the subsequent reduction in charter rates to OMSA. The new liftboat charter and marine supply base adds to Ezion's recurring earnings stream. However, the higher earnings are partially offset by the dilution effect from placement; FY13/14 EPS adjusted by -5%/+1%. Maintain BUY on Ezion for its high earnings visibility and undemanding valuations of 13x/8x FY13/14 PE, against a solid FY12-14 EPS CAGR of 65%. Target price adjusted to S$2.38 (prev S$2.40).

We have upgraded Singapore Land to BUY with TP raised to S$9.53 (Prev S$ 6.99). We believe Singland has significant hidden value through its 53.06% stake in unlisted Marina Centre Holdings, in addition to its large portfolio of 2.1msf of directly owned centrally located and suburban office space. The group has also increased its landbank and now has 788,364sf residential GFA in Singapore, to be developed over the next few years. We anticipate these growth engines to continue to be ramped up in the coming years.

IHH's JV has successfully won the bid for the acquisition of a site at Wong Chuk Hang, Hong Kong, to be developed for private hospital use. The capital investment of RM2bn (incl land cost of RM675m) will be funded by internal generated funds, and bank borrowings. The hospital will have 500 beds and is expected to commence operations by Jan 2017. This latest development reaffirms the longer growth prospects for the Group.

United Envirotechhas signed an agreement with the Jiangsu government to invest RMB200m (S$46m) in TOT/BOT projects in textile industrial wastewater treatment, recycling and water supply. The agreement is for a 30 year concession right to operate a textile and mixed industrial wastewater treatment plant with capacities of 40,000 m3/day for Phase 1 and 80,000 m3/day for phase 2. As United Envirotech has achieved almost 80% of our new TOT (transfer-operate-transfer) projections, any substantial acquisitions from hereon would pose upside to our forecast. No change to estimates and fundamental TP of 74cts. Technically, any near-term bounces should be capped at $0.70-0.72 immediate resistance.

Koyo Internationalhas recently been awarded two mechanical and electrical (M&E) engineering contracts with an aggregate contract value of approximately S$23.7m. Its current order book stood at approximately S$30.5m.

  

In the most recent COE bidding, COE premiums fell across the board, with the most significant drop in the Category B (>1600 cc) and the Category E (open) segments. The sharp decline in COE premiums came on the back of the recently re-introduced financing curbs on vehicle loans. The drop in COE premiums will have an impact on inflation readings in the coming months. The hikes in taxes that were introduced recently will drive private transportation cost higher whereas the fall in COE premiums will bring it down. Our economist's assessment is that there could be downside surprise on the CPI inflation in the coming months as the effects of the loan curbs will likely override that of the tax hikes. This could pose risk to our inflation forecast of 4.0% for the year.

In property news, 43 commercial strata units in Singapore Shopping Centre are up in the market for a collective sale. The shop and office spaces, measuring 22,980 square feet in all, were put up via an expression of interest that closes on April 16. The vendor is looking for offers in the region of $38m or $1,650 psf. The 43 units in the seven-storey development, which has 34 years left on its 99-year lease, constitute 22.6% of the building's total strata area and will give the buyer 19.8% of its total share value.

US stocks ended marginally higher, helped by better-than-expected February retails sales (actual 1.1%, consensus 0.5%). Our economist thinks the initial jobless claims due out today should show the same improvement while Friday's February CPI (consensus 1.9% y-o-y) should indicate the FED has plenty of room to continue QE3.

Source: DBSV