DBS Equity Research: Wired Daily 28 May 2015

kiasutrader

Publish date: Thu, 28 May 2015, 03:06 PM

Religare Health Trust - Growth opportunities to be driven by both organic and inorganic initiatives. Maintain HOLD, TP lowered to S$1.04

Religare Health Trustreported a strong finish to the year with 4Q15 revenues rising 31% y-o-y. But 4Q15 DPU of 1.9 Scts was slightly below expectations, on the back of higher than expected overheads. Looking ahead, growth opportunities will be driven by both organic and inorganic initiatives. Maintain HOLD, TP lowered slightly to S$1.04 (Prev S$ 1.06).

FY15 results for Courts Asia in line as 4Q15 earnings improved sequentially on better gross profit margins and lower operating expenses. Final DPS of 1.29 Scts was declared, below the 1.52 Scts paid out last year. Earnings are bottoming out, but we are cautious on regional demand. Maintain HOLD and S$0.45 TP.

United Envirotechreported a net profit of S$62.4m (+197% y-o-y) for FY Mar15 on turnover of S$349m (+73% y-o-y). Net profit was 10% below our expectation and the major discrepancy was lower than expected turnover from EPC business in Q4. Going forward, we expect uptrend in water treatment sales to continue as UENV has secured more projects. Recent project wins include waste water treatment project in Xinjiang, Hebei and Jiangsu. A JV will also be set up with CNOOC to construct treatment facilities for its petrochemical complex in Huizhou. In addition, more JVs will be set up to boost membrane sales and EPC order book. More to follow after a conference call today.

Keppel DC REIT has entered into a sale and purchase agreement with Macquarie Telecom to acquire the shell and core building of Intellicentre 2 (IC2) in Sydney, Australia for a purchase consideration of approximately A$43.3m. This marks Keppel DC REIT's maiden acquisition five months after its listing.

Cosco Corporation has agreed, in conjunction with its American shipowner customer, to extend the delivery dates of two vessels, originally scheduled for delivery in early 2014. This will be extended until June 30, 2016. This is despite the fact that the construction of both Platform Supply Vessels (PSVs) are "significantly completed". Under the agreement, the shipowner can choose to take delivery of any one or both of the completed PSVs at any time before June 30, 2016. The two contracts were part of four vessels, worth over US$105m in all, signed in early 2012.

Jaya Holdings has entered into a non-binding term sheet in relation to the proposed acquisition of the entire stake in Izzisen Global, together with its subsidiaries and associated companies. The proposed acquisition, if undertaken and completed, is expected to result in a reverse takeover of Jaya Holdings. The Target Group comprise 24 Indonesian plantation companies, which hold concessions to parcels of agricultural permits, and two timber management companies, which are engaged in the provision of services relating to timber and plantation concessions development. The Target Assets are located on Sulawesi Island, Indonesia and have a land permit area of approximately 263,000 hectares.

IEV Holdings has secured five new contracts under its Subsea Solutions Business Unit valued at an aggregate of approximately US$2.2m.

Singapore has again been ranked the world's third most competitive economy by business school IMD, but lost its top spot on the Asia Pacific ranking to Hong Kong, which also by-passed Switzerland in its rise from fourth to second place in the 2015 world rankings. Singapore's score rose to 95, from 91 last year, while Hong Kong's rose to 96 from 90. The impact of Singapore's ongoing restructuring effort showed up in its relatively weaker performance on indicators such as productivity, the labour market and sentiment-related factors.

In US, Dow gained 121pts while Nasdaq closed at new all time high. Chipmaker Broadcom surged 21.5% higher following reports it is close to a deal to be acquired by Avago Technologies, which rose 7.8%. The reports helped lift other chip companies, including Texas Instruments (+2.6%) and Micron Technology (+3.0%). Other big gains came from Dow members Apple (+1.9%) and Microsoft (+2.2%), as well as Facebook (+1.5%) and Netflix (+2.1%).

Source: DBS

RHT HealthTrust (RF1U)Keppel DC Reit (AJBU)COSCO SHP SG (F83)Medi Lifestyle (5TN)

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