SingTel - Guidance revised down; maintain HOLD, TP  S$3.75

CSE Global's 2Q13 net profit of S$12.5m (+12% y-o-y), S$127m new order wins (+10% y-o-y), 1.5 Scts/share interim dividend were in line; S$30m operating cash flow beat our estimate. CSE plans to list its UK business on the London Stock Exchange this year and divest 100% of its stake. The potential IPO of UK business will be 6% or 15% value accretive if it is listed at 12x or 15x PE Our S$0.97 (Prev S$ 0.85) TP implies 15% potential returns; Maintain BUY.

SingTel's 1QFY14 underlying profit of S$897m (+5.5% y-o-y, -10.4% q-o-q) was within our and consensus estimates. Management lowered EBIT (excluding associates) guidance from stable to mid-single digit decline, citing weak AUD and weaker margins at Enterprise business. We have trimmed FY14F/15F earnings by 3.5% each. Maintain HOLD with revised TP of S$3.75 (Prev S$ 3.80); stock is trading at +2SD of historical mean of 13.3x. SingTel has ruled out the sale of the Satellite business in the near term, which dashes hopes for special dividends.

2Q earnings of Rmb14.9m for Midas were largely in line; 1H13 earnings declined 41% to Rmb10m; 0.25Scts DPS declared. Core earnings remain weak as utilisation rate is still less than 50% but associate NPRT has turned around. Midas is expected to remain profitable but the strength of its recovery will depend on how soon China's high speed railway program restarts. Maintain BUY and S$0.60 TP (1.2x P/BV).

2Q13 net profit of S$3.4m for Tiong Seng Holdings was in line. Construction orderbook remains robust; stable margins with the use of pre-casts and construction technology. New pre-cast plants in Iskandar and Myanmar are expected to be ready in phases over 2013-2014. Maintain BUY rating and S$0.33 TP.

Religare Health Trust's 1QFY14 DPU within our expectation; topline improved q-o-q. Forex exposure is hedged till end FY14, and RHT is looking to hedge up to 1H15. Maintain BUY, nudged down TP to S$0.99 (Prev S$ 1.05) after we factored in a weaker INR vs SGD.

2Q13 results for ComfortDelgrowithin expectations. EBITmargins improved on cost management, fuel hedges. Interim DPS of 3 Scts was declared. Maintain BUY, TP: S$2.19. 

2Q13 results for Indofood Agri Resources disappoints again. Net profit of Rp65.9 bn (-74% y-o-y and -38% qo-q), representing only 29% of our mid-range expectation of Rp226 bn. 1H13 earnings hence make up only 23% of our FY expectation and 20% of consensus. Drop in output (vs. expectation of +10% q-o-q rise); and sequentially higher plantation costs were the key variance. Rating (previously HOLD) and TP (previously S$1.04) are under review, pending further details at the results briefing today. 

1H results for Yanlordbelow expectations mainly due to lower than expected GFA delivery, but iYanlord is keeping its full year delivery target. Yanlord has raised its full year saleable resources from Rmb18.6bn to Rmb22.5bn. Upgrade to HOLD with a higher TP of S$1.24 as negatives have been priced in.

Yingli registered a loss of Rmb17.2m in 2Q13, below largely on the increase in other expenses. Occupancy rate continued to improve at its IFC office area, with an average occupancy rate of 72.2%. Commercial occupancy rate fell to 86.8% in 2Q13 from 92.5% in 1Q13 on its attempt to upgrade the brand portfolio. We currently have a BUY call on this stock, with S$$0.55 TP. More to follow.

Malaysia's Jul13 palm oil output of 1.674m MT was in line with forecast, but ending stockpile of 1.664m MT was slightly higher on flat exports. Biodiesel exports jumped 71% m-o-m to 33k MT - volumes too small to make a difference. We expect Aug13 output to rise slightly by 3% m-o-m due to Eid break and marginally trimming ending stock. Global inventories are coming down, but prices still remain weak. We continue to like Bumitama Agri and First Resources for their superior longterm earnings growth outlook.

Raffles Medical Group(RMG) is selling the commercial podium of Thong Sia Building to Kishore Buxani, managing director of the Buxani Group, for $120m, more than two years after paying $92.08m for it in February 2011. With the sale of the eight strata-tiled units in Thong Sia Building - the freehold mixed-use commercial and residential property at 30 Bideford Road, opposite Paragon shopping and medical centre - along with the RMG unit that owns them, the group expects to book net gains of $40.8m.

Mermaid Maritimehas recently been awarded a subsea services contract with Bibby Offshore for services in the North Sea with estimated value of US$30m. This contract marks Mermaid's successful re-entry into the North Sea market. The contract is scheduled to commence in the second calendar quarter of 2014 for a term ending in the fourth calendar quarter of 2014, with options for extension subject to mutual agreement.

SIIC Environment Holdings has been awarded a Shenzhen Guanlan River Pollution Emergency Operation and Management Contract by Shenzhen Municipal Government Procurement Center in Shenzhen City, Guangdong Province, PRC. The Contract entails the operation and maintenance of a wastewater treatment plant with a design capacity of 400,000 tons/day for a period of one year.

LionGold has proposed a three-tranche private placement of up to 180m new shares at S$1.10907 each. In conjunction with the new share placement, up to 135m detachable warrants could be issued, at a price of S$0.02 each. The issuance of placement shares and warrants would raise up to S$202m, providing LionGold with an ample war chest to accelerate its acquisition plans in the gold mining industry.

Macquarie International Infrastructure Fund (MIIF) has agreed to sell its 38.0% effective interest in Changshu Xinghua Port (CXP) to Pan United for S$112.2m cash. If the proposed divestment completes, MIIF will distribute the net proceeds to shareholders. The amount is expected to be 9.5 Singapore cents per share.

Jaya Holdings has secured a long term charter for its Multi-Purpose Service Vessel in Mexico. The vessel is expected to be delivered in June 2015 and construction is now underway.

US markets fell as consensus view for the FED to start reducing QE strengthened further. According to Bloomberg, 65% of economists now thinks tapering will begin from the Sept 17-18 FOMC meeting, this compared to 50% of economists' prediction last month. The US 10-year treasury yield was flat at 2.7%.On a more positive note, the Euro area economy appears to have emergedfrom a record-long recession in 2Q, led by Germany & France. 2Q GDP expanded 0.3% following the 0.3% contraction in 1Q, this according to the EU's statistic office.

Source: DBSV