Singapore property developer stocks with a residential focus could fall about 10% near-term if past reactions to property curbs are anything to go by, says Morgan Stanley.
“What is different, however, is that we think a recovery is less likely this time round-as we think physical prices will also come under pressure.”
TOUR BEGINS MARCH 9 IN OKLAHOMA CITY
Bass giants Stanley Clarke
and Victor Wooten are
hitting the road together for a tour beginning March 9 in Oklahoma City, OK. The two-week jaunt will see the two
heading through Dallas, Boulder, Aspen, Minneapolis, Ann Arbor, Boston, New York, and more cities before wrapping
up on March 26 at Berks JazzFest in Reading, PA. In 2008, the duo released an album with fellow bass legend Marcus Miller under the name
SMV.
TOUR DATES
03/09/11 Wed Bricktown Live Oklahoma City, OK
03/10/11 Thu Granada Theater Dallas, TX
03/11/11 Fri Granada Theater Lawrence, KS
03/12/11 Sat Boulder Theater Boulder, CO
03/13/11 Sun Wheeler Opera House Aspen, CO
03/15/11 Tue Dakota Jazz Club & Restaurant Minneapolis, MN
03/16/11 Wed Viper Alley Lincolnshire, IL
03/18/11 Fri Northern Lights Theater Milwaukee, WI
03/19/11 Sat The Ark Ann Arbor, MI
03/21/11 Mon Water Street Music Hall Rochester, NY
03/22/11 Tue State Theatre State College, PA
03/23/11 Wed The State Theatre Falls Church, VA
03/24/11 Thu Royale Nightclub (formerly The Roxy) Boston, MA
03/25/11 Fri B.B. King Blues Club New York, NY
03/26/11 Sat Berks JazzFest Reading, PA
Stanley Clarke
Tour Dates
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Stanley Clarke News
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Stanley Clarke
Concert
Reviews
Victor Wooten
Tour Dates
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Victor Wooten News
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Victor Wooten
Concert
Reviews
Morgan Stanley expects to realize a pretax gain of about US$700 million (920.7 million) upon consummation of the transaction, which is expected to close before the end of 2010, the New York-based bank said today in a statement. Morgan Stanley is selling the stake to Kohlberg Kravis Roberts & Co., TPG Capital, Great Eastern Holdings and a Singaporean sovereign wealth fund.
Morgan Stanley says market “now accepts that the 2H10 CPO production recovery will be weak, but may underestimate the persistent weakness in 1H11, which in our view will be followed by a supply rebound in 2H11.”
Morgan Stanley cuts Wilmar International (F34.SG) target price to $6.80 from $7.45, keeps Overweight; but says next catalyst is 1Q11.
Notes industry midstream margins have held up well despite rising feedstock costs, outlook for CPO refining looks solid, outlook for Chinese soybean crushing margins worse than before, but does not expect collapse.
Morgan Stanley is selling its 34.3% stake in China International Capital Corp. to Kohlberg Kravis Roberts & Co., TPG Capital, Singapore’s Great Eastern Holdings Ltd. and the island nation’s sovereign-wealth fund, four people with direct knowledge of the deal said.
Morgan Stanley plans to sell stakes of about 10% each to TPG and KKR, and about a 5% stake to Great Eastern, the insurance company controlled by Oversea-Chinese Banking Corp., said the people, who declined to be identified because the matter isn’t public. Government of Singapore Investment Corp. will buy the remainder, the people said. The 34.3% stake is valued at about $1 billion, two of the people said.
Still, prefers office-focused property companies like Keppel Land (K17.SG), Overseas Union Enterprise (LJ3.SG) over pure residential developers given recovery in office capital values. 8,125 units comparable to 8,135 made available under 2H10 government land sales program.
Singapore rig builders rise, outperforming buoyant broad market, regaining most ground lost Tuesday in sharp market selloff as analysts remain bullish on order outlook for 2011.
SembCorp Marine (S51.SG) +1.8% at $5.00, Keppel (BN4.SG) +1.3% at $10.70, SembCorp Industries (U96.SG) +1.5% at $4.91, while STI +0.7%.
Morgan Stanley says “order pipelines for the SG yards have grown again since we last updated them in October,” with SMM, Keppel securing new orders with embedded options for extra future work.
Now expects $9.15 billion 2011 total order intake for Keppel (vs $4.20 billion previously), $11.01 billion for SMM (vs $4.01 billion). Ups SMM’s target to $5.15 vs $4.15, keeps Equalweight rating, ups Keppel’s target to $12.25 vs $11.00, keeps Overweight rating, ups SembCorp Industries’ target to $6.20 from $5.15, keeps Overweight rating.
Prefers laggards Sembcorp Industries, Keppel; says SMM order pipeline very strong, “but multiple is full.”
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Genting Singapore (G13.SG) gaps down at open, last off 6.1% at 2-week low of $2.14, as sequential fall in 3Q10 earnings dampens expectations for continued robust growth, says Dow Jones.
“Genting Singapore reported earnings and EBITDA lower than expectations,” says Morgan Stanley, which has Equalweight call with $2.00 target. Net profit at $187.8 million vs 2Q10’s $396.5 million, while EBITDA at $346.5 million vs $513.9 million.
“While we maintain our long-term positive view of the Singapore gaming market’s growth prospects, especially with the potential introduction of junket operators, the growth is likely to be gradual,” says JPMorgan; downgrades to Neutral from Overweight but ups target to $2.00 from $1.55 after rolling over valuation.
Bounce off early low of $2.07 suggests downside from current levels limited.
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Morgan Stanley starts UOB (U11.SG) at Equalweight with $20.75 target price, says Dow Jones.
Morgan Stanley says bank’s capital markets revenue exposed to mass affluent wealth sales, which will take time to recover: “We believe that UOB’s market-related fees are therefore more exposed to retail investor confidence, and therefore to moves in the equity market, and given recovery is likely to be slow, we do not expect that market-related fees will return to recent peaks.”
Morgan Stanley starts OCBC (O39.SG) at Overweight with $10.48 target price, says Dow Jones.
Morgan Stanley says bank not being given credit for its solid performance through last year’s global financial crisis. Notes OCBC has lowest non-performing loan ratio among Singapore banks, aided by prudent management over last 7 years.
Yield spreads for REITs will remain high while interest rates are low, meaning cheaper funding costs for the trusts, analysts Brian Wee and Wilson Ng wrote in a reported dated Oct. 1. The rise of Singapore’s dollar against the U.S. currency may add to demand for the city-state’s Singaporean dollar- denominated REITs, the analyst said.
Downside for prices of Singapore REITs limited in near term given investors’ continued demand for higher yields amid current low interest rates, says Morgan Stanley, according to Dow Jones.
Morgan Stanley adds rising asset values, especially for office properties, also supportive, while stronger SGD vs USD will help underpin SGD-denominated assets.
Still, REITs could find it challenging to pursue yield-accretive acquisitions as competition for assets heats up, capital values continue rising. Rolls over target prices to peg at end-2011 valuations.
Morgan Stanley remains the largest real estate fund manager in Asia Pacific, according to a survey by a Hong Kong-based industry group, despite running into difficulties with some of its investments in Japan.
The Asian Association for Investors in Non-listed Real Estate Vehicles (ANREV) said late on Monday the US investment bank managed US$19.5 billion worth of Asian property assets as of June 30, 2010, up from US$19.1 billion ($25.3 billion) a year ago.
Overall, real estate fund managers held US$178.6 billion worth of Asian property assets.
Morgan Stanley cuts Wilmar (F34.SG) target price to $7.45 from $8.00 after reducing FY10-12 earnings forecasts by average 9% to factor in plantation group’s weak 2010 results, later-than-expected 2H10 recovery in midstream margins, according to Dow Jones.
Morgan Stanley expects share price to be capped by lack of growth this year but still keeps Overweight call on view Wilmar remains most vertically integrated plantation play.
“In addition, Wilmar has significant direct exposure to China and India, which makes it a rare emerging market play,” says research house. Shares +0.2% at $6.35.
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Morgan Stanley downgrades Indofood Agri Resources (5JS.SG) to Equalweight from Overweight, cuts target price to $2.30 from $2.60, says Dow Jones.
Morgan Stanley says changes reflect reduction in FY10-FY12 earnings estimates by average 16% to reflect weaker-than-expected production outlook this year, higher costs, lower profits from branded cooking oil business.
Research house adds, valuations look full. Tips rebound in CPO price and production volumes, plus sustained decline in cost of capital as catalysts for stock.
Shares +0.4% at $2.34.
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