Today's Focus

3Q13 operating results for IHH Healthcare in line. Admissions and average patient revenue showed growth. We cut our FY13F net profit forecasts by c.23% to reflect unrealized FX losses on USD loans. We also adjusted FY14F earnings down by c.7% with the weaker Turkish Lira, offset by a stronger SGD. Our TP is raised marginally to S$1.53 (RM3.94) as we roll valuations over to FY14F, from blended FY13F/14F previously. While long term prospects remain positive for healthcare players, we believe this has largely been priced in. Maintain HOLD.

United Envirotech(UENV) has entered into a second supplemental agreement with regards to the proposed acquisition of the business, assets and principal subsidiaries of Memstar by UENV. Among the changes are :- 1) Extend the existing agreement to 28 April 2014 from 28 Jan 2014; 2) KKR has undertaken, upon completion of the merger, to immediately convert US$51.1m or 44.9% of the US$113.8m convertible bonds into approximately 137m shares at the conversion price of S$0.45; 3) Memstar to distribute special dividend; 4) Purchase consideration shall be satisfied via cash and new UENV shares.

PGEO Group, a wholly-owned subsidiary of Wilmar, has acquired a 100% interest in Vopak Terminals Pasir Gudang from Vopak Pasir Gudang Malaysia BV for a purchase price of MYR45mil. The principal activity of Vopak Terminals Pasir Gudang is the provision of tank facilities for storage, unloading, loading and drumming of bulk liquid chemicals.

Global Logistic Properties has signed a lease agreement for 13,000 sqm with Geodis Group, one of the world's largest supply chain solutions providers, at GLP Park Suzhou, Eastern China.

Vallianz Holdingshas been awarded US$150m worth of chartering contracts by a leading company in the Middle East. Platform Supply Vessels (PSVs) will be chartered out from 1Q 2014 for 5 years, including option of extension. These contracts boost the current outstanding orderbook by 45% to US$485m.

Mermaid Maritimehas recently been awarded additional US$30m diving and cable lay projects in Middle East. This latest suite of contract awards include new build DP2 construction barge chartered-in to support additional work requirements.

Chip Eng Seng has entered into three contracts of sale to purchase a former nursery and orchard site in Australia. The purchase price of the property is A$19.3m. The property has a site area of 28,002 square metres which the Group intends to develop it into a residential project consisting of around 90 town houses and 50 apartments.

Novo Groupexpects to record an increase of loss for the six months ended 31 October 2013 as compared to that for 2012. The loss is mainly attributable to the cost increased significantly due to the commencement of operations of the Group's tinplate manufacturing plant in Jiangsu and tinplate processing plant in Tianjin.

Singapore's manufacturing output rose 8% in October but still short of market expectations, dragged down by a 2.3% contraction in the biomedical manufacturing cluster. Excluding the volatile biomedical sector - which shrank on a 6.9% drop in pharmaceuticals output - industrial production would have grown an even stronger 10.4% y-o-y. The electronics sector continued to build on September's robust showing, rising from 20% y-o-y growth that month to 22.8% in October. This was largely a result of most segments expanding amid improved demand.

U.S. stocks pared gains in the final minutes of trading to reflect changes in MSCI indices that offset a rally among homebuilders and technology shares. Homebuilders rose after the S&P/Case-Shiller index of property values indicated home prices in 20 U.S. cities rose 13.29% y-o-y, better than consensus estimates of 13%. October building permits registered 1.034mil, better than consensus expectations for 930k.

Source: DBSV