• Monthly Strategy - From cautious to cautiously optimistic
• Courts Asia - Strengthening operations
• Noble Group - Changing tack
• Stratech sets sight on a better FY17; proposes to raise up to S$50m in convertible notes
• Soilbuild Construction Group proposed preferential offering of up to 167.4m warrants at S$0.05 each
• Loyz Energy proposed placement of 102.45m new shares at S$0.0268 each
• SGX launches SGX Sustainability Indices
• Straits Trading Building may fetch record psf price

Stocks to Watch 
Courts Asia (COURTS SP): BUY
Last Traded Price: S$0.33; Price Target: S$0.45 (Upside 38.2%) (Prev S$0.44)

Strengthening operations

• 4Q16 earnings below as Courts undergoes destocking exercise; otherwise FY16 largely in line
• Raise FY17-18F earnings by 1-6% on clearer earnings visibility
• We see Courts as a potential privatisation play
• Maintain BUY, TP S$0.45

Noble Group (NOBL SP): HOLD
 Last Traded Price: S$0.31; Price Target: S$0.32 (Upside 6.5%) Changing tack

• Yusof Alireza steps down as CEO 
• Proposed sale of Noble America Energy Solutions 
• Maintain HOLD, TP S$0.32

News 
Stratech sets sight on a better FY17; proposes to raise up to S$50m in convertible notes 
The Stratech Group reports revenue of S$6.8m for FY16, impacted by late award and commencement of key projects. The Group expects a better FY17, and to deliver up to a third of its existing S$55m orderbook in FY17. Stratech has also proposed to issue up to S$50m in Convertible Notes. The Notes will enable the Group to fund growth and surge ahead, including financing its existing and future projects as well as product and capability development.

Soilbuild Construction Group proposed preferential offering of up to 167.4m warrants at S$0.05 each
Soilbuild Construction Group proposed a non-renounceable non-underwritten preferential offering of up to 167.4m warrants at S$0.05 for each warrant, on the basis of one warrant for every four existing shares held. The exercise price is S$0.18 per share.

Loyz Energy proposed placement of 102.45m new shares at S$0.0268 each
Loyz Energy has entered into a placement agreement to place 102.45m new shares at an issue price of S$0.0268 per new share, raising gross proceeds of approximately S$2.75m. The issue price is at a discount of approximately 8.53% to the last volume weighted average price.

SGX launches SGX Sustainability Indices 
SGX announced the launch of SGX Sustainability Indices, another suite of equity indices composed of SGX-listed stocks. SGX's partner, Sustainalytics, provided the environmental, social and governance (ESG) research and ratings for SGX-listed companies, and the ratings underpin the Indices.

The SGX Sustainability Indices suite is made up of four new indices including the flagship SGX Sustainability Leaders Index, which is comprised of SGX-listed companies that are considered to be clear frontrunners in ESG standards when compared to their peers. In addition to meeting the necessary ESG requirements, companies must also meet minimum liquidity requirement in order to qualify for inclusion.

Straits Trading Building may fetch record psf price 
 A new per square foot record price for an entire Singapore office building could be set if a deal that is brewing for Straits Trading Building on Battery Road materialises. Indonesian tycoon is said to be in exclusive due diligence with a view to purchase the 28-storey, 999-year leasehold building for S$560m. This translates to slightly more than S$3,520 psf based on the net lettable area (NLA) of 158,897 sq ft. The psf price would bust the current record of S$3,125 psf set in April 2008 for Commerz Real's purchase of 71 Robinson Road.

Source: DBS