DBS Equity Research: Wired Daily 15 Apr 2015

kiasutrader

Publish date: Wed, 15 Apr 2015, 02:25 PM

SPH - 2Q15 earnings within expectations; maintain HOLD and S$4.01 TP

2Q15 earnings for SPH within expectations; advertising revenue declined, offset by property income and lower costs. We believe print ad growth will remain soft going forward as GDP and consumption growth remains unexciting for Singapore. Interim DPS of 7 Scts was declared. We do not see significant downside to SPH's share price, as the stock remains firmly supported by dividend yield of 5%. Maintain HOLD and S$4.01 TP.

ST Engineeringannounced that its aerospace arm has clinched new contracts worth $298m in the first quarter (1Q) of 2015. These new orders involve projects ranging from aircraft maintenance and cabin interior modification, to engine wash and pilot training.

Swiber Holdingshas secured a US$133m contract, the third major award in India in the last three months, for Engineering, Procurement, Installation and Construction (EPIC) services in India. With the latest contract, the Group's order book stands at close to US$2 bn including US$435.6m new contracts announced last month, a US$710m offshore field development project in West Africa last December and a US$310m contract from the same client in February.

TPV Technologyis expected to record a net loss in the range of US$40m to US$60m (preliminary figures) for the first quarter of 2015, compared to a loss of US$50.4m in 1Q14 and a gain of US$51.2m in 4Q14.

QT Vascularannounced Federal Drug Administration's approval of the second generation (Gen 2) of the Chocolate® Percutaneous Transluminal Coronary Angioplasty balloon catheter (Chocolate® PTCA). Chocolate® PTCA is indicated for balloon dilatation of the stenotic portion of coronary artery or bypass graft stenosis for the purpose of improving myocardial perfusion.

Otto Marine has delivered four new-build vessels that translated into a total contract value of US$36.6m. Its shipyard, PT Batamec, completed the construction of two units of harbour tugs and two units of anchor handling tug supply for PT Pertamina Trans Kontinental (PTK).

Securities Investors Association (Singapore) (SIAS), in collaboration with The Singapore Association of the Institute of Chartered Secretaries and Administrators and data analytics firm Handshakes, unveiled a new corporate governance methodology which SIAS will use to screen smaller listed companies starting this year for its corporate awards. The new system called Gems (Governance Evaluation for Mid and Small Caps) is an innovative approach to the vexing issue of how best to gauge the governance practices of smaller companies, given that what applies to bigger firms may not be wholly suitable for smaller companies. However, a high total Gems score does not automatically equate to high investment quality or superior returns, but it does suggest the company is well-run, transparent, has an independent board and bears shareholder needs in mind.

US stocks rose, led by a rally in energy stocks that overshadowed weaker-than-forecast March retail sales (actual 0.9%, consensus 1.1%). Energy companies jumped 1.8% as the WTI crude gained 2.7%. In after hours, Intel shares rose after the company gave a forecast for 2Q sales that was in line with analysts' estimates.

Source: DBS

SPHREIT (SK6U)ST Engineering (S63)QT Vascular (5I0)

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