Asia markets are on the rebound this morning. Investors recognizing that despite the deposit levy that rattles confidence among the peripheral Eurozone banks, Cyprus contributes only a small percentage to the EZ economy. The move on deposit levy is likely one-off and will unlikely be replicated by other troubled EZ countries. Across to the US, the FOMC meeting tomorrow is likely to see the FED keeping policies unchanged.

Goodpack should see stronger growth from 4QFY13 (FYE June) with new contracts from the Russian market and Lanxess' new plant in Singapore. Momentum should continue into FY14 with the pickup in rubber trade volume on the back of pent up demand in the replacement tyre market, which constitutes c.53% of total rubber demand, following 20 months of weakness. In addition, cost savings from the global tender exercise will help to improve net margins by an estimated 1ppt. We expect these to fuel FY14/15F net profit growth of 25%/16%. The recent price weakness is a buying opportunity. Upgrade to BUY; TP unchanged at S$1.95.

Yoma announced three investments totalling US$14.55m to expand its hospitality business from Yangon to Bagan to capitalise on the current tourism boom in Myanmar. These include acquisition of 75% stake in SLTG, the only hot air balloon operator in Bagan that operates "Ballons over Bagan" (BoB) in Bagan in the last 14 years for US$10.7m; acquisition of 75% interests in 21.16 acres of land in Bagan for US$3.5m to construct and operate a hotel business and acquisition of 75% stake in luxury tour operator Eastern Safaris for US$0.1m. These acquisitions are positive to profits on completion, but it is now too early to ascertain change to RNAV-based TP of S$0.80. Technically, the near-term resistance is strong at $0.82 or just slightly above.

Rickmers Maritimeis undertaking a non-underwritten renounceable rights issue to raise gross proceeds of up to approximately S$101.7m. The Rights Issue will be offered on a 1-for-1 basis at an issue price of S$0.240 per unit. This represents a discount of 33.3% to the last closing price. The proceeds will be used for repayment of bank loans to improve financial flexibility and strengthen balance sheet.

Yongnam plans to diversify into investing in infrastructural developments. The structural steelworks provider said it intends to consider joint ventures with partners with the relevant expertise of infrastructural developments in Singapore and overseas. The proposed business diversification will leverage on the group's existing business in the provision of structural steelworks, specialist civil engineering and mechanical engineering services, and enable the group to develop new revenue streams, expand its business and improve its growth prospects.

World Precision Machinery has won a tender to design, manufacture, deliver and commission high-end stamping machines for Chongqing Baosteel Meiwei Wheel, the automobile spare parts division of the world's second largest steel producer, Baosteel Group. The total value of the order is RMB20.8m and the equipment manufacturing and installation will be completed in the third quarter of 2013.

Homegrown building construction group, Keong Hong Holdings has won a S$101m contract to construct a 19-storey hotel mixed development, comprising a 13-storey hotel tower and a 6-storey podium. Keong Hong's current gross order book based on secured contracts stands at approximately S$550m, with projects stretching up to 2016.

Willas-Array Electronics intends to seek a dual primary listing of its shares on the main board of The Stock Exchange of Hong Kong.

Catalist-listed Sysma Holdings is proposing a renounceable non-underwritten Rights Issue of up to 95m new shares at an issue price of S$0.17 for each Rights Share on the basis of one Rights Share for every one existing share held. The issue price of S$0.17 represents a discount of approximately 39.3% to the last closing price. The estimated net proceed is expected to be approximately S$16m, and will be used for property development business and general working capital purposes.

In property news, Lam Soon Industrial Building, sitting on a freehold residential site in Hillview Avenue, has been relaunched for collective sale by Colliers International. The 10-storey building comprises 154 warehouses and light industrial factories. The site measures 230,915 sq ft and has a gross plot ratio of 1.92. The site can be redeveloped into a 10-storey residential building comprising 403 units of 1,100 sq ft each. Notwithstanding its current function as an industrial site, the plot is zoned for residential use. The Lam Soon site was launched last May, but the sale was not completed because the owner's price expectations were not met. It had an indicative pricing of $330m, or $925 psf per plot ratio.

Source: DBSV