Tiger Airways said on Friday its third quarter net profit rose 60% to $22.6 million due to stronger passenger volumes and higher average passenger fares.
“There is a major transfer of wealth from the developed countries to the developing countries in Asia,” Tan said today in an interview at the World Economic Forum meeting in Davos, Switzerland. “But it does not mean that for us in GIC, as an international investor, that we do not see opportunities, certainly in the US but even in Europe, because prices have gone so low.”
“The growth is driven by contributions from new acquisitions made during the year (MLT expanded its portfolio by acquiring 14 assets worth about $500 million, increasing its portfolio size to $3.46 billion). We expect MLT to utilise its ample debt headroom ($470 million based on a gearing of 45%) to acquire accretively in 2011.”
“The trust structure is reportedly planning to raise a massive US$6 billion ($7.7 billion), making it the biggest IPO in Singapore ever…the issue will breathe new life into SGX-listed business trusts in general, particularly infrastructure trusts.” Says K-Green Trust (LH4U.SG) and Macquarie International Infrastructure Fund (M41.SG) relative laggards, trading at or below book values, despite attractive yields of between 5.1%-7.4%.
Daiwa forecasts Singapore Press Holdings (T39.SG) will report a 1Q FY11 adjusted net profit of $126.6 million (down 12.5% on year), “due primarily to a lack of property-development business in 1Q” (says Clementi Mall will contribute only in 2Q) on revenue of $344.0 million.
The house’s forecast is 9.6% above consensus “which we attribute to our forecast of continued strong advertising volume growth throughout FY11 due to a resilient domestic consumer economy.”
“There is no need for stimulus measures” even as growth slows this year, Iswaran told parliament in Singapore today. “If anything, we need to be watchful of overheating risks and rising inflationary pressures as the labor market tightens and capacity constraints become more binding.”
At 0403 GMT, Comfort DelGro shares were up 2.5% at $1.63 on a volume of 7.2 million shares.
The house prefers Cosco (F83.SG) over Yangzijiang (BS6.SG) “as Cosco makes further inroads into the offshore sector while YZJ faces delays.” It says more switching from YZJ into Rongsheng (as it comes out of listing blackout) is possible given the valuation gap between the two.
DBS Vickers raises SembCorp Industries (U96.SG) target price to $5.70 from $5.20 as the “core utilities and marine divisions are both revving up.”
The house says utilities are poised for more growth next year and beyond: “Apart from the first full year contribution from Cascal, which adds some 6% to utilities earnings, other new drivers include SembGas expansion by 26% (2011-12), and Salalah (Phase one in 3Q11; full completion in 2H12).”
Singapore shares are slightly higher at 9:29 a.m. but buying conviction is low given a lack of leads.
The STI is +0.1% at 3,157.27 and is expected to stay below 3,200. “The overall directional bias is still uncertain,” says Phillip Securities analyst Phua Ming-Weii; “barring major catalytic events, the final two weeks of the year are traditionally quiet.”
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.”
Coupled with hot capital inflows pouring into Asia, says it’s likely that spot rental rates and asset prices will continue to be inflated. “At the same time, many REIT managers are capitalizing on the recovery cycle for further asset enhancement initiatives and acquisitions.”
“With the markets still rather weak at this point in time, we’re concerned that stocks will still be trading cautiously,” says SIAS Research technical analyst Edmund Seow. “That being said, the U.S. markets do seem to have a little more stability in them at this time, and their consolidations seems to be starting to end.”
The brokerage also boosted its share-price forecast for the operator of the securities and derivatives exchange to $10.37 from $8.22 previously.
Singapore plantation stocks succumbing to some profit-taking after recent hefty gains fuelled by firm CPO prices.
“This is a high-risk rally driven by liquidity,” says UOB KayHian analyst Leow Huey Chuen; “if you are sitting on a huge profit, no harm locking in profit for the year.”
Singapore shares slips on negative Wall Street cue.
“Expect range-bound trading today,” says Kim Eng Securities; “the STI has been slow in pushing to the upside and has failed to close above the 3200 level, indicating a lack of conviction.”
Benchmark off 0.2% at 3,183.98, likely to hold above current 3,150 November trough. Attention mainly on small caps, with most active being Gallant Venture (5IG.SG), +9.8% at $0.28, after Kim Eng Securities’ initiation at Buy with $0.75 target.
Other actively-traded stocks include EcoWise (5CT.SG), +4.0% at $0.13, Top Global (519.SG), +33.3% at $0.02, Bio-Treat (B22.SG), down 28.6% at $0.05. Among blue chips, Singapore Airlines (C6L.SG) down 1.5% at $15.72 as stock trades ex-dividend.
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Citigroup says drivers emerging for sustained upswing in offshore & marine sector; “a strong pickup in rig demand, strength in FPSOs and high margin rig upgrade suggests the orderbook has troughed and is poised for recovery.”
Tips contract wins could double in 2011-2012 vs 2010, reach $4.5–$5 billion.
“Should Petrobras wins materialise, a level above the 2007-2008 peak cycle would be possible.”
