Today's Focus

Post FOMC, talks that the FED may start to taper QE as soon as December weighed down on equities for a second day. But our economist thinks differently as a series of slowing trend that if sustained further, may further postpone QE tapering beyond 2014 is observed. Home sales and mortgage applications, retail sales, personal consumption and payrolls have slowed in recent months even as inflation trended lower.

Having already eased some 20pts yesterday, firm bank results could underpin the index in the current session. OCBC reported better-than-expected 3Q earnings of S$750mil (+5% q-o-q, +27% y-o-y) mainly driven by stronger-than-expected insurance contribution. Other P/L items were inline. NIM was stable as expected at 1.63% on both flat asset and liability yields. This was supported by 2% q-o-q, 16% y-o-y loan growth and 3% q-o-q, 15% y-o-y deposit growth also within expectations.

Provisions were also inline. Will provide more updates after briefing today.

Though we tweaked slightly our FY14/15F earnings for Jaya Holdings down by about 4%/1% to account for slightly higher operating expenses, encouraging signs still persist. High fleet utilisation sustained at > 90% and improving day rates boost charter income in 1Q-FY14. Newly delivered vessels have been employed on long-term charters immediately on delivery. Industry uptrend

continues to support Jaya's transformation to a charter income growth story. Our BUY call and S$0.90 TP are well supported by independent fleet valuations and healthy balance sheet.

Hi-P's net profit of S$3.1m met our lowered expectations, margins collapsed on more assembly work. Balance sheet has deteriorated; Hi-P registered its first ever net debt position of S$42m. Guidance from Hi-P points to weaker 2H13, no recovery in sight. The group expects lower sales and profits in 4Q13 vs 4Q12 and maintains guidance for lower earnings in 2H13 compared to 1H13, even though

sales are forecast to grow h-o-h. Maintain FULLY VALUED and S$0.47 TP.

3Q13 earnings for Osim in line; driven by China, Taiwan and the new uInfinity chair. Osim has raised stake in TWG Tea to majority owner in October, we expect slight earnings accretion (+4%) to FY14F/FY15F earnings. DPS of 1 Scts declared, on track to meet our 5 Scts estimate for full year. Maintain BUY, with S$2.60 (Prev S$ 2.50) TP.

2Q14 results for SMRT below expectations, net profit slumped by 56% to S$14.4m. Fare revenue segments continue to register EBIT losses, offset by non-fare segments. 1H14 DPS of just 1 Sct (1H13: 1.5 Scts) was declared. We have cut earnings by 25%-28% to factor in higher operating costs. Maintain FULLY VALUED, TP lowered to S$1.08 (Prev S$1.20).

Soilbuild Business Space REIT declared maiden DPU of 0.76 Scts, ahead of IPO forecast but in line with our expectations. Steady growth in distributions in 2014, supported by organic drivers. BUY and S$0.87 TP maintained.

Kencana Agri expects to report a net loss for 3Q 2013 mainly due to unrealised foreign exchange losses resulting from the depreciation of the IDR against the USD.

Sin Heng registered total revenue of $47.4m in 1Q FY2014 which was 10.1% higher y-o-y. The increase was due to increase in trading revenue, partially offset by the decrease in equipment rental revenue. Revenue from Equipment Rental business decreased by 5.3% y-o-y to $12.4m in 1Q FY2014,

mainly due to completion of some domestic projects. Revenue from Trading business in 1Q FY2014 increased by 16.9% to $35.0m, mainly due to higher volume of cranes and aerial lifts sold in the domestic and regional markets. Net profit after tax of $3.8m for 1Q FY2014 was 14.6% higher yo-y.

Thai Village is proposing to place 180m new shares at S$0.138 per share. The issue price represents a premium of approximately 17.7% to the last volume weighted average price. The placement is proposed as part of the Group's strategy to diversify its businesses from its current restaurant operations and restaurant management services, and capitalise on opportunities in commercial properties in Asia (including in the PRC).

Longcheer Holdings is proposing a restructuring exercise. The proposed restructuring exercise will allow the company to consolidate its businesses within the Group and to categorise into mobile and non-mobile businesses. This is in line with the company's strategic plans and on-going efforts to redesign its strategic direction and strengthen the Group's position as well as cost control.

TEE International has signed an MOU with Loxley Public Company, a public company listed on the Stock Exchange of Thailand to explore opportunities in renewable energy business and related activities in the Indochina region - Myanmar, Laos DPR, Vietnam, Thailand and Cambodia.

Businesses continue to invest and expand while consumers are cutting back on borrowing. This divergence between corporate and consumer loans is "a positive development", and the trend is expected to continue in the months ahead, according to consensus. Over the month, total domestic

banking unit (DBU) loans rose 1.1% to $546.6 bn at the end of September, up from August's 0.3% growth. On a year-onyear basis, lending accelerated after slowing for four consecutive months. Loans growth grew 15.7%, up from August's 15.4% growth. Loans to businesses grew 1.4% over September to $325.6 bn, after remaining flat in August. Year-on-year growth picked up as well to 18.6%, faster than the 17.4% seen in the month before. In contrast, consumer loans grew a slower 0.6% in September to hit $220.9 bn, after rising 0.8% in August. On a year-on-year basis, consumer loans growth slowed to 11.7%, from August's 12.5%.

The jobless rate in Singapore surprisingly fell to 1.8% in September - the lowest level since last December - as layoffs subsided in the third quarter, preliminary official figures released yesterday showed. Employment growth remained strong, driven mainly by the services and construction sectors, despite slowing from the previous quarter.

Source: DBSV