3Q13 results for Vard Holdings were again below expectations as losses persist at Brazil (Niteroi) yard, with no significant improvement in EBITDA margin. Margins should recover hereon, but likely at a slower pace than previously estimated. FY13/14 earnings cut by 24%/18%; order win expectations maintained. We continue to expect another NOK11bn/12bn in new orders for FY14/15. Maintain HOLD with lower TP of S$0.84 (Prev S$ 0.92).

Yoma Strategic Holdings recorded S$3.3m net profit for 2Q14, from a loss in 2Q13, on the back of a 132.4% increase in revenue to S$27.0m. Revenue growth was driven by continued strong performance of the Real Estate Division. More updates to follow.

Keppel Corp announced this morning that it has secured a repeat order from Transocean to build five KFELS Super B Class jackup rigs for US$1.1bn. In addition, the contract also comes with options to build up to another five similar jackup rigs. The rigs are scheduled to be delivered progressively from 1Q 2016 to 3Q 2017. With this contract, Keppel's YTD win is lifted to S$6.7bn, surpassed our expectation of S$6bn. We will raise our order win assumption for FY13, however, forecasts should largely unchanged in FY13-14 as the earnings will be recognized progressively from 2015 to 2017. Reiterate BUY on Keppel. The divergence in margins between Keppel and Semb Marine in recent released results reinforces Keppel's strength and stronger execution. We believe Keppel's order win momentum will continue to gather steam in the next few months, underpinned by robust potential orders in the pipeline.

China Yongsheng is expected to report a lower profit for 3Q13 compared with the corresponding period in 2012 mainly due to reduction in profit margin.

Action Asia is expected to report a loss for 3Q13 due to lower revenues during the period under review.

ASTI Holdings is expected to report a net loss for 3Q13 mainly due to weak market demand.

In property news, a hotel site in Katong has been triggered for sale, with a developer undertaking to put up a bid of at least $160m. This translates to $601.41 psf ppr for the 99-year leasehold tenure site. The 88,678.4 sq ft plot has a maximum gross floor area (GFA) of about 266,040.6 sq ft. Notably, the winning bidder will have to conserve and restore the former Joo Chiat Police Station, which sits on the plot.

Tanglin Shopping Centre is back on the en bloc market again, after several failed attempts in recent years. Millennium & Copthorne Hotels plc (M&C), the hotel arm of City Developments, has signed a collective sale agreement on its 34% interest in Tanglin Shopping Centre's share held through a wholly owned subsidiary. Tanglin Shopping Centre has been put up for collective sale several times in the last few years. The most recent was an attempt late last year. There were also two tries in 2011 which both failed in securing a buyer. Media reports had cited a reserve price of $1.25 bn for the freehold site of about 68,512 sq ft.

US markets rose on the hope that the FED will maintain its stimulus program after members of the FED board argued the need to maintain a loose monetary policy to support growth. Better-than-expected earnings have also underpinned markets. Of the 423 S&P500 companies that have reported earnings so far. 75% have beaten earnings forecast.

Source: DBSV