DBS Equity Spore: Wired Daily, 22 Aug 2014

kiasutrader

Publish date: Fri, 22 Aug 2014, 11:12 AM

ASEAN Small Mid Caps Radar:- Spackman Entertainment Group. Near-term catalyst would be earnings recognition due from recent screenings.

In this month's ASEAN Small Mid Caps Radar, for SGX-listed stock, we highlighted Spackman Entertainment Group (SEG), one of Korea's leading film production groups which derives a major part of its income from producing, presenting and investing in theatrical films. SEG owns two of the most recognised film production labels in Korea, namely Zip Cinema and Opus Pictures. Near-term catalyst for the stock would be earnings recognition due from recent screenings of two films, which we estimate to be >S$10m, excluding takings from the award-winning Snowpiercer, which is likely towards end-4Q14 or 1Q15.

Sheng Siong Group has entered into a non-binding letter of intent (LOI) to form a joint venture with Kunming LuChen Group to operate supermarkets in the PRC. The LuChen Group was established in 1954 and is principally engaged in the manufacture and distribution of food products such as sauces and condiments.

OCBCBank is talking to Thai billionaire Charoen Sirivadhanabhakdi to sell its stake in United Engineers Ltd (UEL), according to sources. OCBC and its 87% insurer unit Great Eastern Holdings issued a statement saying "they have been approached by a party in connection with a possible transaction relating to their combined stakes in UEL and WBL Corporation. Last year, UEL bought WBL in the largest local takeover which valued WBL at S$1.25 bn. OCBC, Great Eastern Holdings (GEH) plus the bank's founding family shareholder, the Lee group own a combined 34% in UEL.

Aztech Group has diversified into the ship-building segment. The Group has acquired the leasehold interest of a shipyard by acquiring full control of a company now known as AZ Marine Offshore Services. Occupying a site area of about 251,500 square feet and water frontage of some 2,475 feet, the shipyard, located on Pandan Road, consists of a part fourstorey/ part six-storey detached factory with an open yard and jetty. The acquisition is in line with the overall strategy of the group to strengthen its core marine logistics capability, as well as expand its ship-repair and maintenance capacity. AZ Marine is an offshore and marine company, also provides a wide range of marine services including ship management, vessel agency, ship chandling and ship brokerage services, which owns a fleet of 11 tugs, nine barges, two selfpropelled conveyor barges, two mooring boats and one passenger launch boat.

Sabana REIT has entered into an agreement to acquire a Property located at 10 Changi South Street 2 for S$50m. The Property is a purpose-built part single-storey/part sixstorey warehouse building with ancillary office areas. It is situated within the Changi South Industrial Estate, next to Changi Business Park, and has a gross floor area of 189,609 square feet. The Property is a JTC leasehold estate of 30 +27 years tenure commencing from 1 October 1994, with a remaining tenure of approximately 37 years. The acquisition is in line with the Manager's aim to invest in incomeproducing real estate and real-estate related assets used for industrial purposes in Asia which provide attractive cash flows and capital growth opportunities so as to generate stable and growing returns to Unitholders.

Growth in China's vast factory sector slowed to a threemonth low in August as output and new orders moderated, a preliminary private survey showed. The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index (PMI) fell to 50.3 from July's 18-month high of 51.7, missing consensus forecast of 51.5. It was the lowest reading since May. A sub-index measuring new orders, a gauge of demand at home and abroad, fell to a three-month low of 51.3. The sub-index for output also dropped to a three month low in August. Employment fell at a faster pace than in July, indicating more layoffs in the manufacturing sector.

US stocks continued to surge higher on the back of strong corporate earnings and U.S. economic data. Hewlett-Packard(HPQ, Tech30) beat expectations in its quarterly report. Jobless claims also came in lower than expected, and data on U.S. housing prices showed the fastest rise in months.

Source: DBS

Sheng Siong (OV8)OCBC Bank (O39)Sabana Reit (M1GU)

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