“We’re bullish on its growth prospects from capacity and margin expansion, with earnings upside from acquisitions. Our target price of $1.41 is based on 13X CY12 P/E, a 10% discount to the plantation sector average to factor in its slimmer margins.”
CIMB in a Jan 21 research report says: “K-REIT completed an asset swap of Marina Bay Financial Centre Phase One (MBFC 1) and KTGE Tower and the acquisition of 77 King Street in Australia in December 2010. 4Q10 DPU of 1.7 cents broadly met our expectations and consensus, accounting for 26% of our FY2010 forecast.
CIMB in a Jan 24 research report says: “Q&M is in a sweet spot with 37 clinics and two Dental Centres island-wide to tap the population’s dentistry needs, while its two Dental Centres yield higher revenue intensity.
“Investors have over the last six months taken over two healthcare groups (Parkway and Thomson Medical) at high premiums. Like Q&M, these names have strong brand equities, solid patient volumes, revenue & cash flows, and overseas ventures.
“Target price of 83 cents, based sum-of-the-parts valuation. Q&M offers investors value at 15x CY12 P/E (cheaper than peers) against our 3-year core earnings CAGR forecast of 30%. We like it for its strong recurring earnings in the domestic market and international expansion plans. BUY (initiating coverage).”
CIMB in a Jan 17 research report says “Industry newswire, Upstream, says Keppel Fels has emerged as the frontrunner for two harsh-environment rigs from Maersk worth US$900 million.
CIMB in a Jan 14 research report says: “Supported by economic growth, strong tourist arrivals and rising costs of car ownership with recent spikes in COE premiums, ComfortDelgro’s local land-transport operations should continue to grow this year.
CIMB starts STX OSV (MS7.SG) at Outperform with a $1.60 target, based on 11x CY12 P/E (a 10% discount to rigbuilders’ 5-year mean).
“STX OSV is a designer and shipbuilder of high-end, customized offshore support vessels. With nine shipyards in four countries, it has exposure to global E&P spending,” the house says.
CIMB upgrades Bukit Sembawang Estates (B61.SG) to Outperform from Underperform, and raises its target to $5.86 from $4.80.
CIMB says “higher landed property prices, improved sales at Paterson Suites and an official launch of The Vermont prompt us to raise our ASP assumptions.” The new target is still pegged at a 30% discount to RNAV (higher estimate of $8.38 from $6.85 previously).
CIMB in a Jan 5 research report says: “A strong set of 2Q10 result provided indications of a profit recovery, while continued good performance in 3Q10 affirmed the trend.
CIMB upgrades Technics Oil & Gas (5CQ.SG) to Buy from Hold, raises its target to $1.08 from $0.89 on 10x CY12 P/E (a 20% premium above downstream engineering firms’ 5-year average) and factoring in a 10%-13% increase in earnings estimates for FY11-FY12 on higher order-win projections.
“The premium is justified thanks to Technic’s strong exposure to Vietnam’s oil & gas sector and above peers’ profitability, earnings growth as well as dividend yield.”
House projects 39% earnings CAGR for FY10-13; “We see catalysts from strong sets of results, continuous strong growth in the automotive segment, and any M&A announcements.”
A decline in the growth rate of Singapore’s exports isn’t worrying as it comes after the stronger-than-expected expansion last month while 2010 growth still looks to be robust, says CIMB economist Song Seng Wun; government data show November non-oil exports rise 10% on-year compared with 34.5% in October.
The number is less than half of the 22.8% expansion forecast in a Dow Jones poll of economists.
The STI is +0.1% at 3,150.90, rebounding slightly after yesterday’s 0.9% fall which was due to Moody’s Investors Service putting Spain’s Aa1 ratings on review for a possible downgrade, signalling a possible escalation of the euro-zone’s problems.
Volume is ultra-thin so far at 154 million shares worth $158 million, and the market breadth is flattish, suggesting trading interest has waned further as we edge closer to the year-end.
CIMB remains Neutral on dry bulk shipping, as it believes the sector “is in for rough seas in 2011-2012 as supply growth is outstripping demand, particularly for capesize.”
The house says the BDI dropped 3.4% last week, and has declined 9.5% over the past month, dragged by the capesize sector where rates ended last week 26% below the Nov. 12 close.
CIMB maintains its Overweight stance on container shipping, as “order book relative to the existing fleet is light compared to the bulk and tanker sectors.”
Though the house expects an interim dip in freight rates in 2011 after a strong 2010, “rates should move up again in 2012 and beyond as supply growth is set to moderate and demand growth will pick up pace.”
