DBS Equity Research: Wired Daily 13 August 2015

kiasutrader

Publish date: Thu, 13 Aug 2015, 04:59 PM

UOL Group - Attractively priced; maintain BUY, revised TP of S$8.47

2Q15 results for UOL Group in line; property development income led the way. Pre-sales for Singapore residential projects doing well amid muted residential outlook. But retail and office sub-segments are expected to see headwinds going forward. UOL offers high level of income visibility with substantial recurring income. Maintain BUY, revised TP of S$8.47 (Prev S$9.31).

Moody's Corphas cut the outlook for Noble Group to negative from stable. The company's liquidity profile has weakened compared to levels over the last few years, Moody's said. Moody's affirmed Noble's rating at Baa3, the lowest investment grade.

GLP has signed new lease agreements totaling 104,000 sqm with five industry leaders in China. All of the agreements, signed in July, are with repeat customers including Li & Fung, China Merchants Logistics and Itochu Logistics.

Soilbuild Construction Grouphas been awarded a contract for the proposed erection of a single-user 4-storey general warehouse complex. The project is scheduled to commence in the third quarter of 2015 and is to be completed within 12 months from the date of commencement of the project. The total contract sum for the project is S$8.3m.

Olam Internationalhas secured a US$800m revolving credit facility for its US subsidiaries. The facility consists of a twoyear and three-year tranche of US$400m each. Proceeds from the facility will be used to refinance existing debt, as well as to finance the working capital needs of the company's subsidiaries in the US and for general corporate purposes.

Vard Holdings has secured a contract for the construction of one stern trawler for a new Canadian client. The value of the contract is approximately NOK 350m. Delivery is scheduled from Vard Aukra in Norway in 4Q 2016, and the hull of the vessel will be built at Vard Braila in Romania. Vard has also secured another contract for the construction of one coastal fishing vessel for Breivik AS of Norway. The vessel is scheduled for delivery from Vard Braila in Romania in 3Q 2016, securing work for the yard in all stages of production. The value of the contract is approximately NOK 60m.

Heeton Holdings is proposing a renounceable nonunderwritten rights issue of up to 104.4m new shares at an issue price of S$0.493 for each Rights Share on the basis of one (1) Rights Share for every three (3) shares held. The issue price represents a discount of approximately 15% to the last transacted price. The proceeds will be mainly used for the repayment of borrowings and financing investments and acquisitions.

US stocks recovered from early session losses to finish mixed on speculation that the FED will delay rate hikes after the Chinese devalued the RMB. China's unexpected currency move has bolstered speculation the Federal Reserve may have to delay raising interest rates. The probability of a rate increase in September slipped to 42% from 54% on Monday, this according to futures trading data compiled by Bloomberg. The USD eased to 6.38 (from 6.45 yesterday) against the RMB. Expect a moderate rebound in the STI following the sell-down. Upside should be capped at 3100-3120 near-term resistance as uncertainties persist amid currency volatility, slowing economic and corporate earnings growth.

Source: DBS

UOL (U14)Soilbuild Const (S7P)Olam Intl (O32)Heeton (5DP)

Related Stocks

Market Buzz

Discussions

Be the first to like this. Showing 0 of 0 comments

Featured Posts

MQ Chat

New Update. Discover investment communities that resonate with your ideas

VCPlus

Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!

Latest Videos