With bonds unlikely to fare well amid rising interest rates, the investment environment unfriendly for property, SGD gains taking care of themselves and commodity prices at multi-year highs, DBS Vickers says that leaves equities “as an attractive choice for investors given the market’s average valuation and ’pro-equity investment’ policies.”
Posts Tagged ‘Vickers’
STI off 1.3%; 3,090 worst case consolidation – DBS Vickers
January 31st, 2011 |
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The STI is down 1.3% at 3188.45, in line with regional markets’ weakness as worries over the unrest in Egypt cap demand for equities. Volume is light at 863 million shares worth $1.01 billion, with over four decliners per gainer on the broad market.
DBS Vickers says it expects investors “to shy off stocks this week on news of the worsening unrest in Egypt over the weekend, equity markets’ negative reaction to that unrest and this being a holiday-shortened week.”
DBS Vickers raises Olam’s target to $3.70
January 28th, 2011 |
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DBS Vickers raises Olam International’s (O32.SG) target to $3.70 from $3.60, and reiterates its Buy call on the back of higher commodity prices and expected earnings from recent acquisitions.
“We reiterate our Buy call on the stock for 19% upside to our revised target price. With earnings growth momentum intact from acquisitions, and diversified portfolio and geographic locations, we believe Olam remains undervalued. Strong 2Q11 and 3Q11 earnings should provide catalysts for share price appreciation,” DBS Vickers says.
Olam is down 0.6% at $3.09.
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STI +0.5% midday; recent correction is S/T – DBS Vickers
January 24th, 2011 |
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Singapore’s STI is up 0.5% at 3199.42 midday, rebounding slightly after recent losses, but in low volume of just 695 million shares traded worth $536 million.
Market breadth is slightly positive. DBS Vickers says despite last week’s market sell-off, “we maintain our view for STI to head for 3438.” The house’s fundamental objective stays at 3500, based on 15.8X FY11F earnings.
STI off 0.4%; volume tepid; 3165 support – DBS Vickers
January 21st, 2011 |
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Singapore’s STI is down 0.4% at 3192.60, with selling in banks, commodity plays and rig builders weighing on the index as caution prevails after yesterday’s sharp fall. Volume falls from yesterday, and is at 1.01 billion shares so far.
STI slumps at 1.1%; 3200 support should hold – DBS Vickers
January 20th, 2011 |
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Singapore’s STI is down 1.1% at 3206.11, tracking broad declines across the region, which are led by the Shanghai Composite Index’s 2.9% fall on unabated concerns over further tightening measures from Beijing, which would put the brakes on the world’s second largest economy.
“Singapore’s equities are reacting in response to near term weakness in Shanghai,” says Yeo Kee Kian, a market strategist with DBS Vickers.
Cosco Corp may gain if parent injects assets – DBS Vickers
January 20th, 2011 |
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Cosco Corp. (F83.SG) may gain if parent Cosco Group transfers its stake in two shipbuilding operations to the Singapore-listed company, DBS Vickers says in a report.
The possibility of the parent injecting its stakes — 19% of Cosco Shipyard Group and all of Cosco Shipbuilding Industry, which owns two shipbuilding yards in Nantong and Dalian — could add 20% to Cosco Corp.’s bottomline, DBS Vickers says in a report Wednesday.
Amtek Engineering started at Buy by DBS Vickers; $1.65 target
January 11th, 2011 |
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DBS Vickers initiates Amtek Engineering (M1P.SG) with a Buy call, and a target of $1.65, which offers 27% upside plus 5.0%-6.0% dividend yield.
It says “Amtek is a pioneering metal stamper founded in Singapore in 1970. After a private equity buyout in 2007, management quickly re-organised the business to move it further up the value chain and to improve the cross selling of higher value added products and services to existing and new customers.”
SembMarine target lifted to $6.08 by DBS Vickers
December 22nd, 2010 |
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DBS Vickers keeps Sembcorp Marine (S51.SG) at Buy and raises the target price to $6.08 from $5.48 to factor in the rig-builder’s latest US$400 million ($525 million) contract win in its valuations.
SembMarine target raised to $6.08 by DBS Vickers
December 21st, 2010 |
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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.”
SembCorp target raised to $5.70 from $5.20 by DBS Vickers
December 21st, 2010 |
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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).”
Be selective in Singapore property for 2011: DBS Vickers
December 20th, 2010 |
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DBS Vickers advocates a “selective stockpicking stance” in Singapore’s property sector in 2011; it says the sector is trading at mid-cycle valuations and stock performances “will continue to be led by volatile macroeconomic news flow.”
It adds, the office sector has ongoing re-rating catalysts, supported by the office upcycle and further details on the M+S JV (60% owned by Malaysia, 40% held by Temasek).
DBS Vickers ups Yangzijiang target 9.2% to $2.60
December 16th, 2010 |
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DBS Vickers raises Yangzijiang’s (BS6.SG) target price to $2.60 from $2.38 after rolling over its valuation to blended 2011-2012 earnings and increasing 2011-12 earnings forecasts by 4% and 14% respectively in anticipation of increased orders.
Cosco target raised by DBS Vickers to $2.76 vs $2.35
December 16th, 2010 |
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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.
Xinren started at Buy by DBS Vickers; Well positioned in China
December 16th, 2010 |
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DBS Vickers initiates Xinren Aluminium (MN5.SG) at Buy with a $0.70 target.
Says the company is well positioned in the Chinese aluminum industry as an integrated manufacturer with 275,000 tons smelting capacity and 50,000 tons fabrication capacity.
Plenty of reasons to buy Asian carriers: DBS Vickers
December 13th, 2010 |
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Singapore Airlines (C6L.SG) +0.9% at $15.84, Tiger Airways (J7X.SG) +1.1% at $1.87, faring better than the broader market though with both stocks are trading in low volume.
DBS, which rates the former at Buy, the latter at Hold, says there are “plenty of reasons to buy into regional airlines,” with the earnings rebound they enjoyed in 2010 likely to continue into 2011, albeit at a slower pace.
Hi-P +4.2%; In smartphone/tablet sweet spot: DBS Vickers
December 10th, 2010 |
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Hi-P International (H17.SG) is +4.7% at $0.995 with 1.13 million shares traded.
Today’s rise marks the stock’s first strong showing since its better-than-expected 3Q earnings November 1 ($33 million net profit); downward trend since then likely as those results had been priced in after the stock’s 10% rise from September 22 on bullish FY10 guidance; but perhaps with the festive shopping season in full swing, investors are getting a reminder of Hi-P’s earnings potential, as a beneficiary of booming smartphone and tablet sales.
Increase exposure to upstream planters: DBS Vickers
December 6th, 2010 |
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Singapore palm plays mostly higher with Golden Agri-Resources (E5H.SG) +2.0% at $0.755, Indofood Agri (5JS.SG) +0.7% at $2.86, First Resources (EB5.SG) +2.8% at $1.47, Kencana Agri (F9M.SG) +1.2% at $0.425.
Keppel Land +1%; DBS Vickers tweaks FY10 view on MBFC gain
December 6th, 2010 |
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Keppel Land (K17.SG) +1.0% at $4.85, roughly in-line with broad market gain (STI +0.9%) with relatively thin volume of 1.2 million shares; suggests upwardly revised net gain from sale of stake in MBFC 1 to K-REIT (K71U.SG) — due to favorable advance tax ruling — not doing much to generate excitement.
DBS Vickers, which has Buy rating, $4.96 target, notes firm expected to realise net gain of $394 million compared to $321 million reported earlier.