XMH Holdings, the diesel engine, propulsion and power generating solutions provider in the marine and industrial sectors, says its public offer was 157.5 times oversubscribed as of 12 noon yesterday.
About 3,385 valid applications applying for a total of 237,788,000 offer shares were received for the 1.5 million offer shares made available to the public for subscription at 25 cents each.
Application money received amounted to $59.4 million.
OCBC Investment Research has raised its target price for Singapore water firm Hyflux (HYFL.SI) to $2.70 from $2.44 and kept its “buy” rating.
OCBC has raised its 2011 revenue and earnings estimates for Hyflux by 3 and 6.7% respectively, as it expects the firm to secure more contracts in China.
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).
OCBC upgrades Wilmar (F34.SG) to Buy from Hold, and keeps its fair value estimate at $6.48.
The house says in reaction to Wilmar’s maiden entry into the China property market, via a 35%-JV partnership with HK property firms Kerry Properties (40%) and Shangri-la Asia (25%), WIL’s share price tumbled 16% to a recent low of $5.50, weighed by worries that management may be losing its focus.
DMG raises SembCorp Marine’s (S51.SG) target to $5.30 from $4.70 and maintains its Neutral rating.
After SembMarine announced an order win from Noble Corp for two premium jackup rigs valued at US$400 million ($525 million) plus options for four more, the house estimates that SembMarine’s total outstanding order book is now around US$5.3 billion, with deliveries stretching up to 2Q 2013.
DMG raises its FY11-12F EPS estimates by 4.0% and 10% respectively to reflect the new jackup orders from Noble and higher margins on repeat orders.
DBS Vickers raises SembCorp Marine (S51.SG) target price to $6.08 from $5.48 and keeps Buy rating.
The house says since October, SembMarine has secured US$1.6 billion ($2.1 billion) in orders, reversing its orderbook decline, with orders at about US$5 billion currently from US$4.3 billion a quarter ago.
“Order momentum is gaining traction with SMM seeing a high level of enquiries for newbuild jackups and floaters, as well as production units, and not forgetting its outstanding options for seven newbuild jackups worth about US$1.4 billion.”
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).”
Goldman Sachs downgrades the Asian airline sector to Neutral from Attractive following the sector’s outperformance in 2H 2010.
“Our downgrade is underpinned by three key reasons: (1) slower traffic growth momentum expected; (2) rising unit costs to result in margin pressure; and (3) sector appears fairly valued.”
Says investors should be selective in 2011, prefers Buy-rated Cathay Pacific (0293.HK), Singapore Airlines (C6L.SG), and CEA H- (0670.HK) and A-shares (600115.SH).
DBS Vickers lifts its target price for Cosco (F83.SG) to $2.76 from $2.35 after rolling forward its valuation to blended 2011-2012 earnings to align with its Singapore peers.
Keeps its Buy call and upgrades 2011 and 2012 earnings forecasts by 2% and 17% respectively to assume increased orders.
RBS upgrades City Developments (C09.SG) to Hold vs Sell and lifts its RNAV-based target price to $11.90 vs $10.93 to reflect the higher valuations of the developer’s commercial properties and its Millennium & Copthorne (MLC.LN) unit.
“We expect the capital value of CDL’s commercial portfolio to appreciate next year on the back of higher transaction volume and rents.”
CIMB lifts Yangzijiang’s (BS6.SG) target price to $2.57 vs $2.15, based on 14x P/E vs 11x previously, after increasing its 2011 order-win assumption to US$1 billion ($1.3 billion) vs US$800 million.
Adds, the China-based shipbuilder secured US$1.3 billion worth of news orders in 3Q10; “we believe the strength in containership orders could make up for the softer demand for bulk carriers in 2011.”
LAHORE – Reiterating his opposition to the government’s plan to impose Reformed General Sales Tax, former prime minister Nawaz Sharif has said Rs 1,500 billion may be raised through better economic management.
In an interview to Nawa-i-Waqt on Sunday, he said it would be wrong to claim that the RGST would not lead to increase in prices. “This step will be like the proverbial last straw on the camel’s back,” he said. The PML-N chief said the economic situation could be set right by bringing in a team of capable and honest managers.
He said the letter he had recently written to President Asif Zardari had not only diagnosed the problems but also proposed solutions. What is needed is action on the proposals, he added
Reduction in expenditure, search for new income sources and end of corrupt practices, he said, could help raise more resources. Such a strategy, he said, would not only rid the country of dependence on foreign loans but also make it self-sufficient. The PML-N leader said he had held detailed discussions with Finance Minister Dr Hafeez Shaikh and others during their recent visit to Raiwind. He said he had told them that 60 per cent of resources were going to the pockets of the privileged and the remaining 40 per cent were also not being used properly. He said he had not agreed with the governmentÂ’s point of view on the RGST.
According to Nawaz, the government team had indicated that they would meet him again after considering steps about implementing the measures outlined in his letter.
The former prime minister said the rulers would have to change their lifestyle, cut wasteful expenditure and get rid of the corrupt elements. The real problem, he said, was not the shortage of resources, but absence of the right direction and a capable leadership.
Nawaz said the stakeholders were not taken into confidence before taking a decision on imposing the RGST. He said the matter had been bulldozed in the Senate and now bargaining was being made to get the controversial bill passed from the National Assembly.
This, he said, was not the right way to rule the country. He said he would appeal to the rulers to let better sense prevail. All efforts should be made for creating harmony between the Centre and the federating units, and policymaking should be done to serve peopleÂ’s interests and not to meet the requirements of foreign powers.
Nawaz said it was his considered opinion that the prevailing situation was not conducive for the RGST.
He made it clear that now he would not leave the people at the mercy of circumstances. “We’ll not let the government put more burden on the people.”
OCBC raises Venture Corp. (V03.SG) fair value to $12.10 from $10.73 as the house rolls forward 15x valuation from blended FY10F/FY11F EPS to FY11F EPS; keeps at Buy.
“After recently posting a fairly decent set of 3Q10 results, Venture Corp expects to see sequential revenue growth going into its seasonally strong quarter, noting most of its customers have maintained their positive sentiment.”
CLSA lifts target prices for Jardine Matheson (J36.SG) to US$54 ($70.5) vs US$52 based on 20% discount to NAV, Jardine Strategic (J37.SG) to US$31 vs US$30 on 30% discount to NAV.
Keeps both at Outperform; “steep NAV discounts and low valuation multiples renders the risk-reward positive for these holding companies.” Says earnings prospects hinge on sustainability of growth in Southeast Asia, “which seems plausible at present”.
Fraser & Neave (F99.SG) off 1.7% at $6.25, pulling back after Thursday’s 2.6% gain.
Share price has retreated around 8.8% since mid-November high of $6.85, which Nomura puts down to dampened sentiment towards stock due to rising input costs, “but we believe stronger volume growth and the ability to pass on higher costs will mitigate margin pressures.”
Citigroup upgrades SMRT (S53.SG) to Hold from Sell, raises target price to $2.05 from $1.90 after rolling over valuation.
Says continued losses at Singapore rail operator’s new Circle Line likely priced in at current share price, with company appearing on track to recover to historic 25% ROE performance by fiscal FY13 ending March.
Expects quarterly losses of $5 million-$7 million for Circle Line over next 4-6 quarters to be manageable, with profits from other business segments, such as high-margin rental/advertising, helping to cushion overall impact on bottomline. Shares off 0.5% at $2.01.
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HSBC raises Jardine Matheson (J36.SG) target price to US$54.00 ($71) vs US$46.00 to reflect recent upgrades in FY11-FY12 earnings estimates for units Astra International (ASII.JK), Dairy Farm (D01.SG), Hongkong Land (H78.SG).
Standard Chartered lifts China Fishery (B0Z.SG) target price to $2.61 from $1.90, based on 12x FY11 P/E vs 11x previously, after rolling forward valuation, increasing FY11 EPS estimate by 36%.
Royal Bank of Scotland raises Keppel Corp. (BN4.SG) target price to $13.00 from $11.30, based on 19x 2011 EV/EBITDA forecast for offshore marine segment, to reflect higher chances of company landing rig contracts from Petrobras.
The brokerage also boosted its share-price forecast for the operator of the securities and derivatives exchange to $10.37 from $8.22 previously.
