DBS Equity Research: Wired Daily 10 February 2015

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Publish date: Tue, 10 Feb 2015, 05:24 PM

Yoma Strategic - 3Q15 results in line; property and supportive business segments to see sequential improvements. BUY, TP S$0.73

3Q15 results for Yoma Strategic in line. Yoma reported a net profit of S$7.8m (+49.8% y-o-y), mainly boosted by a translation gain of c.S$3.2m. However, topline and pretax profit (ex gains) were down 17% and 23% to S$25.0m and S$5.2m respectively. Property and supportive business segments are expected to see sequential improvements while the rights issue will further strengthen its foothold in Myanmar. BUY, target price S$0.73 maintained.

Cache Logistics Trust has announced the proposed acquisition of three warehouse properties in Australia for A$75.6m (S$79.3m). Based on pro forma numbers provided, we estimate an Net Property Income (NPI) yield of 6.8% (based on total purchase consideration). Cache's investment property value will increase c.7% to S$1.2bn, and its portfolio Weighted Average Lease Expiry (WALE) will be extended from 4.1 to 4.6 years. Forex risk is mitigated via AUD loans and income hedges. We estimate this acquisition to raise DPU by 1-2% over FY15-16F. Maintain BUY, target price S$1.29 (Prev S$ 1.28).

Starburst Holdings has been awarded contracts totalling approximately S$2.5m for a project located in the Middle East. Under the contracts, Starburst will undertake ballistic protection works to a firearm training facility in the Middle East. Contract performance is scheduled to commence in February 2015 and be completed in September 2015.

Dyna-Mac has secured a Letter of Award (LoA) with the preliminary sum of approximately S$60m for the construction of 6 units of FPSO topsides modules from Armada Cabaca, an affiliate of Bumi Armada, a leading Malaysia-based international oilfield services provider to the oil and gas industry.

Geo Energy Resources has entered into a cooperation agreement with a major Chinese State-owned Enterprise (SOE), China Nuclear Industry 22nd Construction (CNI22), for the construction, management and operation of coalfired power stations in Indonesia. Under the agreement, the Group and CNI22 have agreed to cooperate on a nonexclusive basis for a period of two years.

Chuan Hup Holdings said it would sell its 24.7% stake in CH Offshore worth S$95.7m to Falcon Energy Group, after the latter sweetened the offer. Falcon raised its all-cash offer price for each CH Offshore share from 49.5 Singapore cents to 55 Singapore cents.

AEI Corporation is expected to register a net loss for FY14. The expected losses are mainly due to the Group's core business i.e., the Electronics & Precision Engineering segment, continued to face weak demand in FY2014. Its 90% owned subsidiary in China also continued to operate at a loss due to high labour and other operational costs.

GMG Global expects to report a loss in FY2014. The expected net loss is mainly attributable to the decline in the average selling price of natural rubber and share of loss of associate.

U.S. stocks fell, led by health-care and utility companies, amid concern that Greece's rejection of the nation's bailout terms could cause further turmoil in Europe. Greek Prime Minister Alexis Tsipras vowed to negotiate an end to austerity measures, fueling concern about a confrontation with the country's international creditors. Energy stocks edged higher as oil price rebounded further after OPEC cut its forecast for non-OPEC supply growth in 2015 by about 400k bpd, led by a reduction of 130k bpd in the U.S.

Source: DBS

Yoma Strategic (Z59)ARA LOGOS Log Tr (K2LU)Starburst (40D)Dyna-Mac (NO4)Geo Energy Res (RE4)Chuan Hup (C33)

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