DBSV research upgrades F&Nto BUY, as shareholders' value is unlocked through dividend-in-specie of its property unit, Frasers Centrepoint Limited (FCL). Its JV partner in Myanmar Brewery Limited (MBL) has issued a notice of arbitration on FNN's 55% stake. The outcome is unknown at this stage, but we believe in the worst case scenario, impact on RNAV is low, at 2.5%. Stripping out the estimated value of F&B, we estimate that FCL is trading at a steep 47%/27% discount to RNAV and book value, higher than the property sector's average of 31% and c.5%, despite FCL's established position. We revised our TP to S$6.50 (Prev S$9.52), after incorporating the recent capital distribution (S$3.28/share).

SIA has unveiled plans with India's Tata group again to set up a joint-venture airline in that country. SIA said it had signed a Memorandum of Understanding with Tata Sons and applied for Foreign Investment Promotion Board (FIPB) approval to establish a new full-service airline in India. Total initial investment will be US$100m, with Tata Sons owning 51% for its US$51m share and SIA the remaining 49%. SIA and Tata had first tried - and failed - to start up their joint-venture airline in India back in 1994.

Albedo has agreed to a $774.1m reverse takeover (RTO) with a company majority owned by Malaysian tycoon Tan Sri Dato' Danny Tan that will see Albedo transformed into a major property developer in Iskandar, Malaysia's special economic zone in the southern state of Johor. Seven parcels of land in Iskandar valued at RM2.7 bn will be injected into Albedo; two more parcels under negotiations. The company will focus on property development and management in Malaysia after the RTO. Albedo will pay for the acquisition by issuing 34.55 bn new shares representing about 95% of the enlarged issued capital of the company at around 2.24 Singapore cents per share.

ComfortDelGro has incorporated a wholly-owned subsidiary with an initial paid-up capital of RMB1m in China. The principal activity of the subsidiary is operation of a driving school.

Hiap Tong is proposing to acquire a leasehold industrial property located at Soon Lee Road Singapore, with an estimated land area of 26,131 square metres, for S$18m. The proposed acquisition is for the Group's operations and business activities. Its current leasehold property at Pandan Loop, expiring on 15 January 2014, has been granted a one year tenancy (from 16 July 2013 to 15 July 2014) from Jurong Town Corporation.

Hiap Seng Engineeringhas been awarded two contracts worth approximately S$57m for the provision of piping and equipment installation works and the provision of mechanical, equipment erection and structural works in Singapore. Both contracts are expected to commence in September 2013 and scheduled for completion in the financial year ending 31 March 2015.

In property news, rental demand for homes continued to strengthen in Q2, driven by a surge in interest in shoebox units. According to data from Square Foot Research, a total of 12,352 rental contracts in the non-landed private residential market were reported in Q2, up 11.6% y-o-y. In the first six months of this year, a total of 22,937 rental contracts were signed, a 10.2% rise compared with the previous year. Rental demand for shoebox units, defined as units ranging from 300 to 500 sq ft, rose 93% to 748 contracts in H1 2013.

US markets eased, taking a breather from the rise the prior session triggered by the FED's decision to postpone cutting down QE. The 10-yr yield rebound a tat to 2.75% while the USD Index tapped up slightly to 80.36. Existing home sales rose 1.7% m-o-m, better than the -2.6% consensus expectations. The September Philadelphia Fed Business Outlook also gained a better 22.3 compared to 10.3 consensus expectations.

Source: DBSV