We hosted Yoma on a two-day roadshow in Hong Kong. Investors who are keen on Myanmar opening up mostly agreed that Yoma is a direct and liquid access to this frontier market. Discussions centered on Yoma's property business, with key concerns being sustainability of demand and pricing, Yoma's funding needs and its ability to execute an aggressive and diversified expansion plan. Also, the share price has more than doubled within the year and investors are apprehensive of entering at current levels, and asked about possible rerating catalysts. Property sales remain healthy but we cut FY14F/15F earnings by 14%/9% as higher costs would squeeze margins and growth. No change to long term positive view on Yoma; maintain BUY with lower TP of S$1.02 (Prev S$ 1.08).

Nam Cheongannounced another round of vessel sales worth US$70.5m for 2 PSVs and 1 accommodation work barge (AWB) to be delivered between 1Q14-4Q14. The AWB was sold to a subsidiary of Malaysian contractor Perdana Petroleum, a repeat customer who had earlier bought 2 similar vessels in April 2013. 1 of the PSVs were sold to an existing Asian customer, who had earlier bought 4 PSVs in May 2013, and the other PSV was bought by new customer EDT Offshore, a specialist OSV operator based in Cyprus. Nam Cheong is well on track to achieve its sales target of 19 vessels in FY13 and 25 in FY14. Orderbook now stands at about RM1.5bn. This underpins robust net profit CAGR of 20% for the Group in FY13/14. Maintain BUY with TP of S$0.36. Expect further near term catalysts from a strong showing in 2Q13.

Organic expansion and revaluation gains lifted CapitaMalls Asia's earnings. 2Q13 net profit grew 6% y-o-y to S$246m while revenue was up 25% to S$93.4m. New mall completions and healthy rental growth in China support NAV and cashflow. Maintain BUY, TP S$2.34 (Prev S$ 2.38). With 20 malls in the pipeline to be completed by 2017, earningstrajectory remains visible. The sentiment on China remains a dampener amid short term adjustments on growth quality, longer term prospects are bright, on the consumption front. This bodes well for CMA as a Pan Asian retail real estate player.

3Q13 results for Frasers Centrepoint Trust in line. Strong performances were seen at Causeway Point (CWP) and North Point (NP). We should continue to see positive rental reversions at both malls. Management is repositioning Bedok Point in light of the completion of Bedok Mall at the end of the year. In the coming quarters, CWP and NP will continue to be the two key growth drivers for the REIT, with performances for the other malls remaining stable. In addition, we expect the acquisition of Changi City Point to be completed in FY14, and this should contribute positively to earnings. Maintain BUY, TP unchanged at S$2.33.

Ascott Reitreported weaker yoy revenue and profit, largely due to a lost income from the divestments of Grand Cairnhill and Somerset Gordon Heights. Despite the JPY and AUD depreciating against the SGD, Ascott recorded a 0.4% net property income translation gain due to stronger EUR and CNY. Going forward, the REIT is looking to hedge 50% to 70% of its EUR and JPY denominated currencies in order to minimize income volatility from exchange rate movements. Maintain BUY, TP S$1.51.

2Q13 earnings for Sheng Siong Group slightly below; growth was driven by margin expansion and contribution by new stores but offset by store renovations and competition. We expect margins to expand further, and earnings should improve sequentially from seasonally weak 2Q. The group has declared interim DPS of 1.2 Scents; dividend yield of c.4% supports share price. Maintain BUY, TP S$0.80 (Prev S$ 0.78).

Singapore Exchangereported 4Q13 net profit of S$88m. Full year earnings at S$336m were in line with consensus but 7% above our estimates. Strong derivatives and other revenue lifted profits; expenses rose in tandem with revenue, and were mainly due to higher staff costs. SGX declared final DPS of 16 Scts, inclusive of 4 Scts base DPS, bringing full year DPS to 28 Scts (89% payout). Maintain HOLD and S$7.15 TP.

Global Logistic Properties has signed lease agreements totaling 44,000 sqm to Goodbaby, a leading global manufacturer and retailer of infant and children products. With these two new leases in Suzhou and Langfang, Goodbaby has increased its leased area with GLP to 51,000 sqm (549,000 sq ft).

Mencast Holdingshas won contracts worth a total of approximately S$6m from a Singapore based refinery. Effective from mid-2013 to June 2016, these contracts cover work such as maintenance, waste treatment, cleaning and operations.

Smartflex Holdingsexpects revenue for 1H2013 to be lower than 1H2012 as customers' demand for the Group's products fell. Consequently, the Group expects to report a net loss before tax for 1H2013. 

CSE Global has entered into agreements to acquire 75% stake in S3 ID for S$14.7m. The acquisition will enable CSE to increase products and services offered to the Oil & Gas Industry.

Sinostar PEC Holdingswill report a loss for 2Q2013 and 6 months ended 30 June 2013. The loss is mainly due to prolonged sluggish demands in the oil and petrochemical products leads to over-supply situation in the markets and the lower market selling price.

Singapore's inflation rose to 1.8% y-o-y this June due to higher petrol pump prices. June's inflation data was also 0.2% higher than the 1.6% in May. Services inflation was higher at 2.7% in June compared with 2.5% in May, mainly on account of costlier medical insurance and holiday travel. Food inflation was stable at 2.0% as the cost of prepared meals rose at a slightly stronger pace, while the price increase for non-cooked food was more modest. The government has reduced its inflation forecast for the year and said that its current monetary policy stance remains appropriate. Consumer price inflation is likely to range between 2.0% and 3.0% in 2013, according to the Monetary Authority of Singapore, revising an April estimate for a 3.0% to 4.0% rise in the index.

The Monetary Authority of Singapore said that Singapore's growth will be stronger and inflation lower this year compared to last year. GDP should comfortably meet growth forecast of 1-3% this year, according to MAS managing director Ravi Menon. Growth was estimated at 2% in H1 and should pick up further in 2H. MAS revised down CPI to 2-3% from 3-4% previously but said core inflation will persist.

Passenger traffic at Singapore Changi Airport increased 6.1% in June 2013 with 4.67mil passengers passing through the airport. Air traffic to and from Southeast Asia, Northeast Asia, South Asia and the Middle East grew. The haze situation in Singapore during the month had no discernible impact on passenger and aircraft movements, this according to Changi Airport Group. On the cargo front, 150,500 tonnes of airfreight were processed at Changi Airport in June 2013, 1.8% lower yo-y.

A state tender for a 30-year leasehold industrial site in Woodlands Industrial Park E9 has drawn 10 bids. The highest bid from Incorporated Woodlands Pte Ltd came in at S$72.69mil or S$161.02 per square foot per plot ratio (psf ppr). The second highest bid was from Lian Beng Group's unit, Wealth Land (S$107.17 psf ppr). The 1.68-hectare site is zoned for Business 2 use with an integrated heavy vehicle park.

Premier Li Keqiang's government sees 7% growth for China as the bottom line for tolerance of an economic slowdown, signalling the nation will act to support expansion if needed. Expansion below 7% won't be tolerated because China needs to achieve a moderately prosperous society by 2020, according to a commentary published by the official Xinhua News Agency.

US indices pulled back from gains in recent sessions as earnings releases continued and investors pondered when the FED will start QE tapering. In the technology sector, shares of Texas Instruments rose on better than expected results while Netflix fell on lower subscriber gains. In after hours trade, Apple reported profit and sales ahead of expectations.

Source: DBSV