Important Dates This Week 11th Oct 2017 (US, China and SG)
- Market sentiment is expected to remain subdued as traders awaiting key data from US (inflation), China (trade)and Singapore (3Q GDP, MAS policy) this Fri. - But support could come from the latest IMF update, which bumped up its global growth forecasts as an upswing in the world economy is expected to gather pace into next year.
- Technically, the STI is approaching overbought territory with upside resistance pegged at 3,320 and underlying support at 3,275.
- According to news reports, CapitaLand is holding back sales of two residential projects (57% sold Marina Blue, 81% sold Sky Habitat).
- This comes as other developers, Landlease, Qingjian Realty and GuocoLand have also postponed the next phase of their sale launches for projects launched earlier this year, possibly in the hope of raising prices next year.
- Top picks are UOL (TP: $9.43), GuocoLand (TP: $2.75) and City Dev (TP: $12.05).
- Clinched a Rmb94.8m contract to provide four cold hydrogenation fluidized bed reactors to Chinese conglomerate Inner Mongolia Tongwei.
- Delivery is slated by 1H18 and will be positive for the group's FY18 results.
- Last traded at 15.7x trailing P/E.
- Korean film, The Outlaws, distributed by 51%-owned subsididiary, has taken the top spot in the Korean box office for two consecutive days.
- Separately, the group raised its stake in 26.17% owned talent agency, Spackman Media Group, to 29.12% for US$2.7m. This will be funded via issue of by 28.5m new shares (6.1% of share capital) at $0.13 each.
- Proposed to acquire a development stage motion picture production firm, Take Pictures, for $3.9m, via cash ($0.6m) and 25.7m new shares (5.6% of share capital) at $0.13 each.
- Last traded at 8.6x forward P/E.
- Completed acquisition of Sengkang Pawnshop for $3.58m.
- The acquisition will provide an additional revenue stream and is in line with group's expansion plan.
- Last traded at 9.6x trailing P/E against 10.1x for peer Maxi-Cash'.
- Guided for a 3Q17 operating loss of several hundred thousand dollars.
- Forecast revenue for 3Q17 will just exceed US$11m (-33%).
- The lacklustre quarter was due to excess inventories of polished diamonds, which prompted manufacturers to slow down production and hold off capex, and imitation products that impaired the sales of its capital equipment.
- Last traded at 14.2x forward P/E.
- Proposed a slew of changes to encourage new remisiers to join the industry in bid to improve trading activity on the local bourse.
- These proposed changes include removing the minimum $30,000 security deposit in order to allow broking houses to set their own credit limit, and giving brokers more flexibility to operate off-premises and their own non-trading businesses.
- Last traded at 21.5x forward P/E.
- Acquiring two warehouse facilities in Moosthenning, Bavaria/Germany, for €42.4m ($67.8m).
- The properties with a combined gross lettable area of 72,558 sqm are leased on a long-term basis to a leading German car manufacturer for the warehousing of automotive spare parts.
- Secured its second management contract in China for an upcoming integrated marine located at Sanshan Island, Suzhou.
- The contract will be for a 10-year term, with no further financial details provided.
- Separately, the group inked an MOU with Hainan Cruise & Yacht Association to exchange ideas regarding the development and expansion of Hainan Island's leisure marina industry.
- Proposed placement of 100m new shares (19.7% existing share capital) at $0.1403 (10% discount to last close) to placement agent PrimePartners Corporate Finance.
- Net proceeds of $13.3m to be used for general working capital (30%) and investments into new, prospect or existing portfolio companies (70%).
- Proposed interested party transaction for a 51% acquisition of investment holding company, which owns Malaysian incorporated travel agency, YC Travel & Tours, for $15m.
- Funding will be via 117.2m new shares at $0.128 apiece to be issued to Executive Chairman and CEO, Chu Sau Ben, and will lift his stake from 50.002% to 74.752%.
*Samurai 2K Aerosol
- Signed an MOU with Genesis GD for the latter to be the sole and exclusive distributor of Samurai's line of products in Cambodia.
- Entered into a JV agreement with a privately-owned automobile parts importer in Myanmar.
- The JVCo will develop and establish a marketing business for automobile and industrial products in Myanmar.
- YHI has the option to increase its shareholding to a maximum of 51% from its current stake 19%.
- Last traded at 26.7x trailing P/E and 0.97x P/B.
News for today 11/10/2017:
- Oil rises above US$56 on Saudi export cuthttp://www.businesstimes.com.sg/energy-commodities/oil-rises-above-us56-on-saudi-export-cut?xtor=CS3-25
- Gold rises but US rate expectations cap gains http://www.businesstimes.com.sg/energy-commodities/gold-rises-but-us-rate-expectations-cap-gains
- World economic growth improving, even as US, UK potential slows: IMF http://www.straitstimes.com/business/world-economic-growth-improving-even-as-us-uk-potential-slows-imf?xtor=CS3-18
- Dow ends at record high as Wal-Mart surges on forecast http://www.straitstimes.com/business/companies-markets/dow-ends-at-record-high-as-wal-mart-surges-on-forecast?xtor=CS3-18
- Canada housing starts, building permits fall as long boom cools http://www.businesstimes.com.sg/real-estate/canada-housing-starts-building-permits-fall-as-long-boom-cools?xtor=CS3-25
- Euro rises to 1-week high on German trade data http://www.businesstimes.com.sg/companies-markets/euro-rises-to-1-week-high-on-german-trade-data?xtor=CS3-25
- Catalan leader stops short of formal independence declaration to allow talks http://www.straitstimes.com/world/europe/catalan-leader-puigdemont-to-address-regional-parliament-amid-fears-of-declaration-of?xtor=CS3-18
- China says will have no problem meeting 2017 growth target, may beat it http://www.straitstimes.com/business/economy/china-says-will-have-no-problem-meeting-2017-growth-target-may-beat-it?xtor=CS3-18
- IMF raises Japan growth forecast for 2017 to 1.5% http://www.businesstimes.com.sg/government-economy/imf-raises-japan-growth-forecast-for-2017-to-15
- SGX's top 20 China-linked firms achieve 39.8% average return http://www.businesstimes.com.sg/companies-markets/sgxs-top-20-china-linked-firms-achieve-398-average-return?xtor=CS3-25
- Locals make up majority being trained, hired for key jobs in Singapore's financial institutions http://www.straitstimes.com/business/banking/financial-institutions-in-singapore-training-and-employing-over-80-per-cent-of?xtor=CS3-18
- Condo resale prices edge up 0.1%, volume down 10.9% in September: SRX Property http://www.straitstimes.com/business/property/condo-resale-prices-edge-up-01-volume-down-109-in-september-srx-property?xtor=CS3-18
Stocks to watch today 11/10/2017:
- Adventus last close $0.013, 52wk high/low $0.019/$0.009 - ICT solutions provider Adventus names RHT Capital as Catalist sponsor http://www.businesstimes.com.sg/companies-markets/ict-solutions-provider-adventus-names-rht-capital-as-catalist-sponsor?xtor=CS3-25
- China Jishan last close $0.181, 52wk high/low $0.28/$0.025 - Company calls off asset disposal, may stave off cash company status http://www.businesstimes.com.sg/companies-markets/china-jishan-calls-off-asset-disposal-may-stave-off-cash-company-status
- First REIT last close $1.36, 52wk high/low $1.39/$1.25 - REIT completes Siloam Hospitals Buton, Lippo Plaza Buton purchase http://www.businesstimes.com.sg/companies-markets/first-reit-completes-siloam-hospitals-buton-lippo-plaza-buton-purchase?xtor=CS3-25
- GRP last close $0.20, 52wk high/low $0.283/$0.19 - Company to take up 51% stake in Malaysian property development firm http://www.businesstimes.com.sg/companies-markets/grp-to-take-up-51-stake-in-malaysian-property-development-firm?xtor=CS3-25
- Koh Bros Eco Engineering last close $0.119, 52wk high/low $0.134/$0.036 - Company receives regulatory approval for proposed rights cum warrants issue http://www.businesstimes.com.sg/companies-markets/koh-bros-eco-engineering-receives-regulatory-approval-for-proposed-rights-cum?xtor=CS3-25
- Olam last close $2.23, 52wk high/low $2.25/$1.855 - Company's 5.6% surge prompts SGX query http://www.businesstimes.com.sg/companies-markets/olams-56-surge-prompts-sgx-query?xtor=CS3-25
- Sunpower last close $0.63, 52wk high/low $0.885/$0.38 - Company's unit clinches 94.8 million yuan contract http://www.businesstimes.com.sg/companies-markets/sunpower-unit-clinches-948-million-yuan-contract?xtor=CS3-25
- Secura Group $0.109, 52wk high/low $0.23/$0.098 - CEO resigns to 'pursue personal interests' http://www.businesstimes.com.sg/companies-markets/secura-group-ceo-resigns-to-pursue-personal-interests?xtor=CS3-25
- SUTL last close $0.69, 52wk high/low $1.01/$0.50 - Company secures 10-year management contract for new Suzhou marina http://www.businesstimes.com.sg/companies-markets/sutl-secures-10-year-management-contract-for-new-suzhou-marina?xtor=CS3-25
- Trendlines last close $0.156, 52wk high/low $0.205/$0.136 - Company proposes S$14m share placement http://www.businesstimes.com.sg/companies-markets/trendlines-proposes-s14m-share-placement?xtor=CS3-25
- YHI last close $0.39, 52wk high/low $0.415/$0.28 - Company's unit in joint venture with Myanmar firm to market car and industrial products http://www.businesstimes.com.sg/companies-markets/yhi-unit-in-joint-venture-with-myanmar-firm-to-market-car-and-industrial-products?xtor=CS3-25
Singapore Stocks to Watch
* CWT (CWT SP): HNA to acquire all issued, paid-up ordinary shares in CWT: filing
*Nam Cheong (NCL SP): Latest Singapore restructuring shows oil distress far from over
*Noble Group (NOBL SP): Noble Group is said in advanced talks to sell oil unit to Vitol
* Olam (OLAM SP): Unaware of factors driving share price
*SGX (SGX SP): Proposes changes to rules on securities trading
*Sembcorp Industries (SCI SP): Raised to hold at HSBC; PT raised to S$3.05
*Sunpower (SPWG SP): Clinches contract worth RMB94.8m
*Wilmar (WIL SP): Ukraine’s Odessa region to get $300m of agriculture investments
|SGX gives brokers more flexibility|