2Q 13 results for Genting Singapore within expectations, but growth outlook is weak. Growth is under threat with still cautious lending to VIPs, mass segment stagnating (local visitation trending down given stricter restrictions; increased focus on expanding premium mass), slower tourist arrivals to Singapore, rising cost pressures from restrictions on foreign labour and tight hotel room supply (>90% occupancy rate with MBS having advantage of being surrounded by hotels in CBD). While GENS is ready to bid in Japan, it remains to be seen whether Japan can be a lucrative market given no clarity on tax rates and regulations. In the meantime, GENS is eyeing other Asia ventures which may materialise within the next 6-12 months. Maintain HOLD, S$1.42 TP.

Wilmar's 2Q13 core net profit came in at US$245m (+42% yo-y; -22% q-o-q) - or 18% below mid-point of expected US$290-305m range. Earnings were dragged by softer pretax profit across the board, except for Palm & Lauric M&P. Our current Buy rating and TP of S$3.48 are under review. We will provide more updates after analyst briefing today.

Ezion's 2Q13 recurring net profit rose 90% y-o-y and 28% qo-q to US$36.2m, driven by contributions of additional liftboats and jackups, as well as offshore logistics vessels with the commencement of the three LNG projects in Australia. Bottomline is ahead of our expectation of c.US$30m. The outperformance came from better than expected margins and JV income, as well as higher other income from management fees for vessels under JV. We will fine tune our numbers after results briefing this morning to factor in the stronger performance, and also higher interest expense in the light of management's move to swap to fixed rate. Maintain BUY.

Ezion is also proposing a bonus issue of new shares on the basis of one (1) new share for every five (5) existing shares held.

StarHub reported 2Q13 net profit of S$100.6m (+16% y-o-y, +10% q-o-q), 3-4% above our expectations. 1H13 profits comprised 51% of our full year estimate of S$378m. Key positive was recovery in mobile revenue, up 4% q-o-q to S$314m as post-paid ARPU recovered 6% q-o-q to S$72. Management attributed it to increased take up of tiereddata plans. We think a seasonal rebound in roaming revenue could also be a key factor here. No changes to our FY13F earnings. We rule out special dividends but StarHub may raise annual DPS to 22 Scts from FY14F onwards (20 Scts currently) to match DPS with EPS. Maintain HOLD with TP of S$4.30.

Yangzijiang's2Q13 results were slightly better than our expectations. Group revenue increased 12% mainly due to higher revenue recognition from construction of larger vessels. Healthy gross profit margin of 27%; core shipbuilding margin remains strong at 21%. Strong order book momentum despite weak shipbuilding industry. The group has secured US$1.0 bn worth of newbuild contracts secured in 1H2013.

Q2 profits for Hyfluxbelow on declining sales in all region. 1H made up only 37% of our original FY13F compared to 40-42% in previous years. EPC orderbook is left with S$792m. Management expects a couple of bids submitted this year to have outcomes next year. As new orders are lacking YTD, we cut new win assumption from S$500m to S$250m and trimmed Marine slightly. Consequently, net profit is cut by 20% and 29% for FY13 and FY14 respectively. Maintain HOLD, TP lowered to S$1.24 (Prev S$ 1.43).

2Q13 net profit for Sembcorp Industries of S$165m (-13% y-o-y, 10% q-o-q) came in below our forecast (S$170m) and consensus (S$199m) due to weaker Marine and Urban Development. Utilities, however, surprise on the upside. Singapore held up on one off gains while China's coal-fired plant was more profitable thanks to lower coal prices. SCI has revised up Utilities outlook to steady performance this year despite lingering pricing uncertainties. We incorporated higher Utilities, weaker Marine and other earnings adjustment to our forecast. Maintain HOLD given limited upside. 

City Developmentsreported a 5% jump in 2Q net profit to S$131m on 2% higher revenue of S$802m. Half-time earnings only make up 30% of our forecast, due to slight drag from lower hotel and timing of residential profits. Going forward, residential earnings visibility continues to be strong. Medium term upside surprise may come from hotel redevelopment and other growth platforms. Maintain HOLD, TP S$12.49 (Prev S$ 12.33).

Maxi-Cash is proposing a bonus issue on the basis of one Bonus Share for every ten (10) existing shares held.

Swee Hong has secured a contract from the Land Transport Authority (LTA) worth S$134.7m in relation to the proposed construction of a new dual four-lane road between MacRitchie Viaduct and Adam Flyover via the Bukit Brown Cemetery. The Contract is expected to contribute positively to earnings for FY June 2014. 

Innopac Holdingsis placing out 250m new shares at an issue price of S$0.1232 each. The issue price represents a discount of approximately 9.9% to the last weighted average price. The funds raised will strengthen the Group's working capital and increase its ability to fund its growth and business expansion.

ASTI Holdings is expected to report a net loss for 2Q13 mainly due to losses from the Distribution & Services business and impairment of goodwill.

Executive chairman of City Developments Kwek Leng Beng says unless the global and domestic economies rebound strongly and curbs on foreign buyers for private residential property sales are reviewed, some oversupply in the Singapore residential sector is expected from next year onwards. Private home prices could drop 5% from now till next year assuming all the cooling measures remain intact. Investment sentiment, particularly among foreign buyers in Singapore's high-end residential segment, has not recovered due to the additional buyer's stamp duty that is not a permanent measure

Data released continue to underpin optimism that the Eurozone economy is on the mend. Italy's 2Q GDP shrank by a less-than-expected 0.2% (consensus 0.4% contraction) following a 0.6% contraction in 1Q. UK's June industrial output increased a stronger-than-expected 1.2% y-o-y, much better than consensus for 0.7% gain and the fastest increase since January 2011. UK's July housing price rose at their fastest annual pace in nearly 3 years and retail sales had their best July since 2006. German industrial orders also rose a better-than-expected 3.8% m-o-m in June, the biggest rise since October last year as contracts for big-ticket items jumped and Eurozone demand rebounded.

US markets fell as fixation over a possible QE tapering as soon as September weighed on sentiment. Retailers results disappointed while shares of IBM declined after requiring most US employees in its hardware division to take a week off amid slowing demand.

Source: DBSV