Singapore's 1Q13 advance GDP estimates contracted 1.4% QoQ. This translates into a year-on-year decline of 0.6%, down from an expansion of 1.5% in the previous quarter. Growth momentum appears to be slowing down. But much of this "deceleration" is nothing more than reflecting the highly distorted data over the last two months, due to the Lunar New Year effect. Our economist believes that the bottom of the current cycle is back in 3Q12 when the economy contracted by 4.6% QoQ saar. The main drag came from the manufacturing sector, which contracted by 11.3% QoQ and 6.5% yoy. Beyond the existing seasonal effect, there are signs that this sector could see better performance in the coming months. A rebound in March manufacturing and export number is expected, judging from the recent turnaround in the PMI numbers. Services sector output grew 1.2% yoy while the construction sector expanded 7.0%.

Meanwhile, the Monetary Authority of Singapore has maintained its exchange rate policy stance. The central bank has maintained the current slope, width and centre of the Sing NEER policy band. With inflation still high (4.9% in Jan13) and growth outlook expected to improve, risks are nicely balanced on both ends. And this makes for a stable monetary policy. Nonetheless, the MAS has lowered its inflation forecast to 3-4%, down from 3.5-4.5% previously. This is to take into account the effect of the recent tightening of the regulations pertaining to car purchase financing, which will have a downside impact on COE premiums as well as inflation.

We initiate coverage of Del Monte Pacific with a BUY rating and target price of S$0.97, offering >30% total return, including 3.3% yield. The stock presents an opportunity for investors to leverage on robust growth of the Philippines economy. We are projecting 25% earnings CAGR over FY12-15F, supported by: (i) rising domestic sales driven by its branded products and larger distribution network; (ii) continued growth of the S&W brand in the Asia Pacific region; (iii) expiry / revision of long term supply contracts to lift margins in FY15F; (iv) expiry of PET toll packing contract in 3Q14, with potential to improve margins with new contracts; and (v) cost savings from its waste-to-energy project. Rerating catalysts include better trading liquidity and continued earnings growth.

Singtelconsortium and Digicel, partnering Yoma, and 10 others have been pre-qualified for Myanmar telecom licenses. As expected, international operating experience is crucial. Those we qualified for this factor are all short-listed. Apparently, the third and final stage of selection process has begun. The next round of applications is due on June 3. The Committee expects to announce the final two winners on June 27. We do not foresee significant earnings impact on the winners near term. Based on our estimated enterprise value of US$1.6-2b, investment should be kept within this range.

Ezra posted 2QFY13 recurring net loss of US$2.4m compared to our expectation of a US$3m net profit. Results were slightly below expectations in what is usually a seasonally weaker quarter. Revenues were largely in line at US$247m (17% growth) but EBIT margin of 3.4% came in below our forecast of 4%, as the subsea operations are still being ramped up. Separately, the group reported US$120m in new contract wins across its subsea services and offshore chartering segments. Will provide more details after the analyst briefing today. We currently have a BUY call with a target price of S$1.58.

PEC has secured milestone contracts for the supply and installation of electrical and instrumentation (E&I) works related to a mega liquefied natural gas (LNG) project in Australia. The E&I works will be carried out on the modules in Thailand and they will be shipped to Australia for site erection. The project is scheduled to be completed by Dec 2015. Other contracts include an EPC project for tank modification and storage and handling facilities for a major refinery in Singapore. Together, the new contracts will expand the group's orderbook, which stood at S$152m as at Dec 2012, excluding maintenance projects.

Hyflux announced that CFO Cho Wee Peng has resigned. His last day will be 28 Jun 2013, after 1Q13 results. With his departure, Hyflux has appointed Gary Kee to ED of corporate finance, investments and IT. He will be assisted by group CFO Ms Lim Suat Wah. Mr Cho has been one of the key finance officers to evaluate and advise on Hyflux's investment and new projects. We believe his contributions are meaningful but we do not foresee major disruptions as the remaining management team in Hyflux - Ms Olivia Lum & Sam Ong, together with the latest management shuffle, would be capable to ensure smooth operation.

Thai Beverageannounced that Standard and Poor's Ratings Services (S&P) has removed the group from S&P's CreditWatch, and that S&P's long-term corporate credit rating on Thai Bev has been changed from "BBB" to "BBB-" with negative outlook.

US stocks rose for a 4th day after weekly initial jobless claims fell more than expected (actual 346k, consensus 360k). Sentiment was further underpinned by optimism of consumer spending after retailers reported high March sales.

Source: DBSV