Weak 1Q13 results for CDL Hospitality Trusts were in line; earnings dragged down by its Singapore hotels. The absence of the bi-annual Singapore Airshow with Chinese New Year falling later (in Feb13 vs Jan12) impacted accommodation demand for 1Q13, especially the corporate travelers. We see challenges in the immediate term. We believe that further room rate hikes will be limited given new incoming hotel supply in 2013 (4,138 rooms, +8% of current). Downgrade to HOLD, TP adjusted to S$2.07 (Prev S$ 2.11).

OCBC 1Q13 results inline with ours but above consensus; lifted by lower provisions. Net profit came in at S$696m (+5% q-o-q;--16% y-o-y). While earnings were above consensus estimate of S$641m, there were largely inline with ours. 1Q13 net profit comprised 23% of our FY13F forecasts. As expected NIM continued to slide (-6bps q-o-q; -22bps y-o-y) given sustained pressure from asset yields and reduced gapping opportunities. Non-interest income was drive by brokerage and wealth management on a q-o-q basis but was offset by slightly lower insurance contribution and lower trading gains. Provisions continued to be low. Loans grew 3% q-o-q; 10% y-o-y while deposits grew 2% q-o-q; 7% y-o-y. Loan-to-deposit ratio was fairly stable at 87%. Our current BUY and S$11.50 TP is under review. Will furnish further details after analyst briefing today.

DPU of 1.99 Scts for Frasers Commercial Trust was in line (+14% y-o-y). Capital restructuring completing; expiring of Alexandra Technopark master lease in FY14 presents upside. Supported by its restructuring exercise coupled with underlying growth, we like FCOT's growth story over FY13-15F, which is visible and achievable. Maintain BUY with a higher TP of S$1.69 (Prev S$ 1.45) as we raise our FY15F earnings from Alexandra Technopark master lease expiry.

4Q13 results for Ascendas Hospitality Trust in line. Revenues of S$48.3m came in 8.7% below IPO forecasts. This is due to a seasonally low quarter for its Australian hotels while a soft operating environment resulted in its portfolio RevPAR coming in A$158/night, - 4.8% vs forecast). However, DPU of 1.68 cents beats its forecast by 14.3%. The proposed acquisition of Park Hotel Clarke Quay is subject to unitholders vote at an EGM to be convened soon. While we have not factored in the acquisition in our estimates pending financial details, based on our initial analysis, assuming that the trust raises 67% of the acquisition value (cS$200m) in equity, we estimate a 4-6% dilution to our FY14-15F estimates to 6.8 and 7.1Scts. Maintain HOLD, TP S$1.00.

Indofood Agri Resources' 1Q13 earnings of Rp106.8 bn (-72% y-o-y; -45% q-o-q) was below our and consensus expectations. Plantations EBITDA plunged 64% y-o-y, partly offset by 21% rise in Edible Oils & Fats EBITDA. Production cost is guided to increase 5-10% for FY13F on 15% higher wages and 5-10% output increase. FY13F/14F/15F earnings cut by 9%/7%/5% on lower Lonsum contribution, higher fertiliser and indirect costs, and lower FFB purchases. Maintain HOLD, TP reduced to S$1.14 (Prev S$ 1.20).

Bumitama released its 1Q13 production numbers after market yesterday. Both own and smallholders FFB (Fresh Fruit Bunches) output grew by 34% and 23%, slightly outperforming our full year growth forecasts of 29% and 12%, respectively. We expect own and smallholder FFB output to reach 1,221,106 MT and 561,389 MT, respectively. Hence, in 1Q13, the group had already achieved 20.2% and 21.4% of our full year forecasts, respectively. Bear in mind that 1Q is the lowest production quarter (typically accounting for c.19% of full year output). We understand the group expects full year growth rate to remain sustainable; and higher contribution in 2H13. Bumitama is due to release its results on 13 May13 after market close. We expect results to outperform our expectations, despite lower CPO ASP. We understand FFB yields in Kalimantan were not as adversely affected by dryness in Jul-Sep12 nor Mar13 that was reported by IndoAgri yesterday.

1Q13 results for Broadwaycame in below forecast due to continued HDD weakness and lower margins. The Foam Plastic segment offers better growth but expansion is too slow to offset HDD decline. We are likely to maintain Fully Valued call and cut earnings for FY13F and FY14F. Will provide more details after analyst briefing today.

Yongnam has announced that the consortium which it is working with (in partnership with JGC Corporation and Changi Airport Planners and Engineers), has submitted a proposal to the Myanmar Department of Civil Aviation for the right to design, construct, operate and maintain Yangon International Airport and its facilities for a 30 year concession period. We believe Yongnam's consortium stands a good chance to win the project due to their credentials. Maintain Hold rating and TP S$0.32 for now.

Lian Beng Grouphas secured three new projects worth a total of $211m. This brings the group's construction order book to a new high of $1.2 bn, and will provide the group with a substantial construction revenue flow through FY2016. The three new contracts involve the construction of Oxley Tower @ Robinson, a hotel at 122 Middle Road, and Goodwood Residence.

Prices of completed private apartments and condominiums rose marginally in March, reversing February's drop, according to the latest flash estimate from the National University of Singapore (NUS). NUS's overall Singapore Residential Price Index (SRPI), which tracks prices of completed non-landed private homes, excluding executive condos, rose 0.9% in March, after dipping 1.2% in February. This was driven mainly by the sub-index for Central Region (excluding small units), which rose 2.2% in March, against a 3.7% slide in February.

The first- quarter Global Economic Conditions Survey (GECS) revealed that levels of business confidence in Singapore, while still fragile, were stabilising and remained stronger than those in the rest of the region. Singapore's confidence index was up 8.4 points since Q4 last year, hitting -24.0 in Q1. This was just above the Asia-Pacific average at -24.8, as well as Hong Kong's at -25.7 and, to a greater extent, Malaysia's at -41.7. However, Singapore still fell short of the global confidence index at -13.0, as well as that of China at -4.7.The Middle East saw the highest confidence levels at 4.5.

US markets continued to rally higher. Not because the economy is improving but ironically, because it's not doing all that well and with tame inflation, the optimism is that the FED will renew its pledge to purchase bonds. In Europe, the ECB is also seen cutting interest rates to a record low of 0.5% this Thursday. Of the 273 S&P500 companies that have reported earnings so far this month, 74% exceeded analysts' profit predictions, while 55% missed sales estimates, this according to Bloomberg.

Source: DBSV