DBSV Research is initiating coverage on Asian Pay Television Trust (APTT) with a BUY recommendation and target price of S$ 0.97. Forward dividend yield is attractive at 9.1% to 9.8%. APTT is a single asset business trust, and it holds Taiwan Broadband Communications (TBC) Group, the third largest cable TV operator in Taiwan. It is more aggressive than its peers in growing complementary businesses in Premium Digital Cable TV and Broadband services. 

Venture's core net profit of S$28.6m met our estimates, but it could be better if not for higher tax provisions. There are signs of underlying improvement in 2Q13 and continued strength into 2H13. Upgrade to BUY on improving outlook; 17% upside to higher S$8.40 TP (Prev S$ 8.03) and 7% yield.

Tat Hong reported a poor set of results for 1Q14, missing ours and consensus expectations as Australia underperforms. Australia outlook remains uncertain leading up to elections in September. We have cut FY14F/FY15F earnings by 46%/16%. Downgrade to HOLD with lower TP of S$1.08 (Prev S$ 1.43). 

Nam Cheong's 2Q13 earnings jumped 83% to RM41m, slightly above. Strong vessel sales momentum YTD and it looks set to exceed last year's record sales numbers. We expect EPS CAGR of 17% over FY12-14. Upside potential remains if vessel sales are faster than expected. Maintain BUY with unchanged TP of S$0.36.

2Q13 earnings for Kreuzwere in line; on track for another growth year. We expect order win momentum to pick up in 2H. Construction of new state-of-the-art multipurpose vessel is on track, and should boost growth prospects from FY15. Maintain BUY with a higher TP of S$0.95, as we roll over valuations to blended FY13/14 earnings and raise our PE multiple to 9x.

ST Engineering's2Q13 net profit of S$148m (+3% y-o-y) in line. All core segments posted improvements in profitability, led by Aerospace division. Initiatives to drive long-term growth are in place at Aerospace and Marine divisions. ST Engineering is a proxy to potential recovery in the US and appreciating US$. Maintain BUY with S$4.80 TP.

SingTel's 1Q14 underlying profit of S$897m (+5.5% y-oy, -10.4% q-o-q) was in line with consensus and ours. SingTel reclassified its business segments from Singapore and Australia into Group Consumer, Group Enterprise and Digital Life Segments.  However, management lowered its EBIT (excluding associates) guidance from stable to mid-single digit decline citing weak AUD and EBITDA decline in the Enterprise business. We could trim our FY14F/15F earnings forecasts by 2-3%. Cancellation of sale of Optus satellite division also takes off a possible catalyst. Will follow up with more updates.

CSE's 2Q13 core profit of S$12.5m (+12%y-o-y, -2% qo-q) was inline with our expectations. 1H13 profit comprises 48% of our FY13F forecasts. New order wins of S$127m was on the higher side of our estimate of S$115-120m despite no large order wins. 1H13 order wins comprises 44.4% of FY13F forecasts. Gearing declined further to 6% from 12% in 1Q13 due to bumper cash generation above S$15m despite an acquisition. CSE is planning an IPO of its UK business (accounted for S$16-17m profit last year) before the year end. This indicates potential for special dividends or more acquisitions. More updates to follow. We are likely to maintain BUY rating on CSE.

2Q13 earnings of US$37.7m for First Resources were below our US$45-50m estimates due to lower refining profit. 1.25Sct interim DPS was declared. Own FFB output growth guidance was cut to 0-5% from 5-10%; new planting target of 15-20k ha is unlikely to be met due to labour shortage. FY13F-15F earnings revised by +2%/-5%/-3% on lower yields, biodiesel volume and export taxes. BUY call reiterated for 21% upside to our revised TP S$ 2.15 (Prev S$ 2.18). At the current price, we believe the counter has more than priced in lower output.

Core operations for Banyan Tree continue to show improvement. There are positive indicators going forward despite a seasonal lull period. Higher profitability is expected. BUY maintained, TP S$0.83.

Eurozone's June industrial production rose 0.7% m-o-m (0.3% y-o-y), slightly below the consensus expectation for a 0.8% increase. The growth in June was driven by production of durable goods, such as cars, computers or electronics products, which rose by 4.9% on the month, its strongest growth since July 2011. The data underpins the hope that the Eurozone is on track to exit recession in 2H13.

US indices recovered from early session losses to end firmer despite a slightly weaker-than-expected July retail sales (actual +0.2%, consensus +0.3%) as the data pointed to a moderate recovery in the economy. Meanwhile, of the 450 companies in the S&P500 Index that have reported quarterly results this period, 72% exceeded analysts' profit estimates; this according to Bloomberg show.

Source: DBSV