Yongnam's 2Q13 results were below expectations on weak margins. Delay in Yangon Airport tender results weakens stock catalyst. Weaker outlook as margins remain muted and order book shrinks. We have cut FY13F/FY14F earnings by 44%/25%. Downgrade to FULLY VALUED, TP S$0.28 (Prev S$ 0.41).

Sales for United Envirotech in line, but net profit fell short due to lower Treatment margin. Capacity utilization is on track to meet our full year expectation, but EPC wins are behind target. We have cut FY14/15F earnings by 13%/15% to reflect lower Treatment margin and EPC revenues. Maintain HOLD rating, nudged down TP to S$0.90 (Prev S$ 0.97).

City Developmentsposted a 48% rise in 2Q net profit as gains from asset sales offset lower contributions from hotels. Quarterly earnings rose to SGD203.8mil from SGD137.7mil the previous year. Rental properties business was the lead contributor to earnings largely due to the gains recognised from the disposal of 100G Pasir Panjang. A special interim dividend of S$8ct/share is declared. Going forward, it flagged "stronger headwinds" starting 2HCY13 stemming from the recent property market-cooling measures imposed and potential oversupply in the residential market next year. Will provide more details after the briefing this morning.

2Q13 earnings for Interra Resources shot up to US$4.45m, more than the amount the firm made for the whole of 2012 - thanks to a new oil well in South Sumatra. Because of a doubling of the firm's shareable production, revenue increased by 94% to US$13.8m, in spite of lower transacted oil prices. The group's shareable production went up from 92,353 barrels a year ago to 191,895 barrels. The surge in production was mainly attributed to the good results of its new oil wells in the Tanjung Miring Timur (TMT) concession in South Sumatra, in which Interra holds full participating interest. Gross production there increased five times from the same period last year to 109,489 barrels of oil. The group will continue to actively seek new concessions and assets to strengthen its presence in the region, as well as to achieve growth sustainability.

CCM Group intends to diversify the Group's business to include the property development business, which is complementary to its current core business in building construction, with strong synergy between these two business segments. To finance the new business, CCM is proposing to raise up to S$41m from issue of Warrants and Exchangeable Notes. It plans to issue S$36.0m via the issue of up to 3.42 bn warrants and a further S$5.0m from the issue of exchangeable notes.

JES Internationalhas entered into a letter of intent for a facility of up to a maximum aggregate of US$20m with the option to request an additional facility of up to a maximum aggregate of US$20m. 

Ley Choon Grouphas secured a contract worth approximately S$6.5m awarded by the Public Utilities Board. The contract is in respect of the supply, laying and diversion of ductile iron.

Koon Holdingsexpects to report a pre-tax loss in the range of S$8.5m to S$9.5m in 1H2013 mainly due to lower gross profit from the Construction division owing to delays and in one case and losses from the Precast division due to the inability of new pre-cast plant to reach anticipated utilization rates.

Jason Parquet Holdings is expected to record a net loss for HY2013 mainly due to higher cost of sales, as a result of increase in cost of materials and subcontract costs, and allowance for doubtful trade receivables.

A new survey of 147 companies in Singapore has found that most of them are generally optimistic about their business outlook this year despite an uncertain economy. This is reflected in moderate wage increases, bonuses and recruitment plans that are largely similar to those of the second half of 2012, according to the survey conducted by the Singapore Human Resources Institute (SHRI) and wage consulting firm Remuneration Data Specialists (RDS). The survey of both multinationals and SMEs, conducted in June, showed 85% of companies reporting "satisfactory or better" business prospects, up from 78% almost a year ago.

US stocks fell following a FED official comment that the central bank is close to start QE tapering. Consensus is that the tapering process will begin next month, September. Meanwhile, the ISM non-manufacturing index rose to 56 in July, higher than consensus expectation for 53.1.

Source: DBSV