1Q13 results for Hutchison Port Holdings Trust lagged expectations; overall volume growth was flattish. The disruptions caused by port workers' protest in Hong Kong will have an impact on FY13/14 distributions. However, recent acquisition and fast ramp up of ACT will help mitigate the impact to an extent. Given the impact of lower capacity utilisation in 2Q13, and a likely increase in operating costs in future, we cut our DPU projections for FY13/14 by 9%/7% to 5.74UScts and 6.15SUcts, respectively. This still implies dividend yield in excess of 7% at current prices. Maintain BUY with slightly lower TP of US$0.87 (Prev US$ 0.89).

Earnings for OCBCwere above consensus but in line with ours. 1Q13 net profit was 23% of our FY13F.Sustained net interest margin (NIM) pressure and lower trading gains hit topline, but earnings were supported by lower provisions. OCBC is still guiding for high single digit loan growth. Prospects for wealth management remain positive. Downgrade to HOLD on valuations; TP unchanged at S$11.50. OCBC still remains our preferred pick over UOB despite our downgrade.

Broadway's 1Q13 results below forecast, Foam Plastic/Non-HDD did well but insufficient to offset HDD weakness. FY13F/14F earnings cut by 29% and 25%. Restructuring is at tail-end, and we expect recovery in 2H. TP revised to S$0.30 (Prev S$ 0.26), upgrade to HOLD.

Losses for SMRTin 4Q were larger than expected; FY13 below expectations. Key negative surprise is the huge cut in dividend payout and DPS. A final dividend per share (DPS) of 1 Scts/share was proposed, equating to a full-year DPS of 2.5 Scts (interim 1.5 Scts) and yield of 1.7%, substantially lower than last year's 7.45 Scts (4.9% yield). We have cut FY14F/15F earnings by 8%/6% on higher costs. Maintain FV, TP revised to S$1.20 (Prev S$ 1.30).

1Q13 results for Del Monte Pacific were dragged down by non-branded segment. Branded segment post strong 27% revenue growth, and accounts for 68% of group sales. Del Monte is a proxy into Philippines consumer sector with growth accelerating into FY15F, from established Del Monte and fast growing S&W brands. Maintain BUY and TP of S$0.97.

Venture's 1Q13 net profit was below; lower than expected sales dragged net margins below 6%. We

expect a stronger 2H but have cut FY13F/14F by 12%/10% to reflect lower margins. TP lowered to S$8.05 (Prev S$ 9.17), maintain HOLD.

Armarda is placing up to 715.7m new at S$0.0217 per share, a discount of about 9.96% to the last volume weighted average price. The net proceeds of approximately S$14.4m will be used to finance or fund the Group's corporate actions and/or business opportunities and for working capital purposes.

Vard Holdings has entered into a contract with Buksér og Berging for the construction of one Azimuth Stern Drive (ASD) offshore tug vessel. The vessel is scheduled for delivery in Q1-2015 from Vard Braila in Romania.

Ascott Residence Trust has agreed to buy three serviced residences in China and 11 residential rental properties in Japan for a total of S$287.4m. It will buy Citadines Biyun Shanghai and Somerset Heping Shenyang for about S$63.2m and S$86.2m, respectively, from Ascott Serviced Residence (China) Fund in which The Ascott Ltd holds a 36.1% stake. It will also buy Citadines Xinghai Suzhou for about S$23.2m and 11 rental housing properties in Japan for about S$114.8m.

Keppel Energy and Keppel Integrated Engineering will come under one umbrella in the form of newly incorporated Keppel Infrastructure Holdings. The new unit will drive the group's strategy to invest in, own and operate competitive energy and related infrastructure.  

Advanced Systems Automation is expected to report a net loss for 1Q13, mainly due to the continuing weakness in the Group's Equipment and Equipment Contract Manufacturing Services businesses arising from the weak global economic environment.

ASTI Holdings is expected to report a net loss for the 1Q2013 mainly due to the contribution of losses from its subsidiary - Advanced Systems Automation and increase in research and development cost incurred for development of semiconductor packaging technologies.

Asia-Pacific carriers' traffic rose 5.4% in March, compared with the previous year, according to latest figures from the International Air Transport Association (Iata). This was supported mainly by strong growth in the Chinese market, as well as increases in Asia trade since the fourth quarter of 2012. Indeed, half of the growth in international traffic since October has come from Asia-Pacific carriers, said Iata. Capacity rose 3.4% y-o-y and load factor climbed 1.5 percentage points to 79%. Compared to February, traffic rose 0.8%. On the global stage, international passenger demand rose 5.9% in

March, compared to a year ago. Part of the rise may be attributed to traffic related to the Easter holiday, which occurred in March this year, versus April the year before, said Iata.

US stocks fell after economic data disappointed. The April ADP employment change that comes ahead of Friday's official job number read 119k versus consensus 150k. April ISM manufacturing also declined to 50.7 from 51.3 the previous month. Meanwhile, the FED maintained its USD85bil/mth bond buying pace. At the end of the 2-day FOMC meeting, it left unchanged its statement that it plans to hold target interest rate near zero as long as unemployment remains above 6.5% and the outlook for inflation doesn't exceed 2.5%. In Asia, China's PMI of 50.6 came in about expectations that signalled a slowing in manufacturing activity.

Source: DBSV