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A sign that the market is returning to normal is the emergence of many bloggers! 
Amara Holdings (Sept 27: 74.5 cents) TP: 98 cents
BUY (initiating coverage). Amara's strong presence in the hospitality industry enables it to leverage on Singapore's booming tourism industry and property market through increased hotel room rates and capital values. Amara has embarked on an expansion strategy over the past year. Its new resort in Sentosa has 121 rooms in luxurious surroundings and allows Amara to attract tourists descending upon the upcoming integrated resort. Amara's expansion plans to ride the strong growth in the tourism industry should be well received by investors. Amara trades at an attractive 50 % discount to our target price of 98 cents, which is at parity to RNAV. - DBS Vickers Securities (Sept 25)
Manufacturing Integration Technology (Sept 27:19.5 cents) TP: 20 cents
HOLD (initiating coverage). MIT has become one of the leading semiconductor integrated solutions providers. To reduce volatility in financial results, it has been diversifying into new businesses through synergistic alliances and acquisitions since 2006. Management is also making forays into other growth areas such as aerospace, medical, automotive, and oil and gas. Owing to the current softness in the semiconductor industry, FY2007 results are expected to be lower than FY2006, but are expected to improve in FY2008. Book value for FY2007 and FY2008 is estimated to be 18.8 cents and 20.5 cents respectively. By using the average book value of FY2007 and FY2008, we arrive at a fair value of 20 cents. - SIAS Research (Sept 27)
Suntec REIT (Sept 27: $1.94) TP: $2.18
MAINTAIN BUY. In Suntec REIT's 3Q2007 results, it announced its intention to buy a one-third stake in One Raffles Quay (ORQ) for $941.5 million from Cheung Kong. Since our ratings and fair value upgrade in end-July, Suntec has done well, appreciating by about 3 %. Suntec is well positioned to benefit from the retail and office sectors' strong performance as well as from the F1 race next year and the opening of the Marina Bay IR in 2009. The ORQ transaction with its sponsor implies that the future acquisition of assets from its sponsor's development in the nearby new Business Financial Centre is also assured. We retain our target size of $5.5 billion and fair value of $2.18. - OCBC Investment Research (Sept 25)
Cosco Corp (S) (Sept 27: $5.65) TP: $6.20
MAINTAIN OUTPERFORM. Cosco Zhoushan and Cosco Dalian shipyards have jointly clinched contracts for building 16 bulk carriers worth US$724.3 million ($1.08 billion) from ship owners in Germany, Taiwan and Greece. It has contract wins of US$3 billion year to date. Cosco's impressive pace on clinching bulky orders has brought its order book to US$4 billion, enhancing its earnings visibility until 2011. We have raised our EPS estimates by 3 % to 15 % for FY2008-09 on the back of the growing order book and higher order-book assumptions for FY2009. Together with our earnings upgrade, this has raised our target price to $7.70 from $6.20. We believe more conversion and shipbuilding contracts will continue, supported by its massive yard capacity. - CIMB-GK Research (Sept 25)
Sing Lun Holdings (Sept 27: 25.5 cents) TP: 33 cents
UPGRADE TO BUY. The adoption of a three-pronged growth strategy of operational excellence, product leadership and customer intimacy helped it turn in a stellar performance in 1H2007. As it moves to become an integrated supply chain management provider, the growth momentum of its earnings is expected to continue. In line with its new business plans, Sing Lun recently made a US$7.4 million investment in Vietnam, to boost production capacity. We estimate earnings of US$5 million (EPS: 2.1 US cents) for FY2007. Management intends to maintain its dividend payout of 1.4 cents per year. This translates to a dividend yield of 5.7%. We have a 12-month target price of 33 cents, or 8x FY2008 earnings. - DMG & Partners (Sept 26)
Tiong Woon Corp Holding (Sept 27: $1.14) TP: $1.50
OUTPERFORM (initiating coverage). TWC is arguably the largest integrated crane and marine logistics company in the region, exploiting booms in construction and oil and gas. The Bintan yard acquired last year is a potential money spinner. FY2007 net profit rose 153 % y-o-y to $22.8 million on margin expansion, higher equipment utilisation and higher chartering rates. TWC has strong operating cash flow to support its higher net gearing. FY2007 ROE doubled to 21.1 % from 10.5 % in FY2006. The target price of $1.50, set at 15x CY2008 PER, is comparable with valuations for SGX-listed construction peers. Our target implies upside potential of 43 %. TWC trades at an attractive 10.7x CY2008 PER against a three-year core earnings CAGR forecast of 50.3 %. - CIMB-GK Research (Sept 24)
Food Empire Holdings (Sept 27: 86.5 cents) TP: $1.20
MAINTAIN BUY. Revenue climbed 18.3 % to $123.41 million while net profit improved 9% to $15.09 million. Sales were boosted by a 20.1 % jump in Russia market revenue as its flagship brand MacCoffee continued to dominate the premium instant coffee market. Total profit after tax reached a record level of $15.1 million in 1H2007. Our revenue forecasts for FY2007 and FY2008 have changed slightly, giving us $281 million and $337 million respectively while net profit is projected to hit $36.35 million, a 16.8% increase from our previous projection. Using the industry average PER of 14.5x, we attain a revised target price of $1.20, which is 4.3 % higher than our previous target. - SIAS Research (Sept 24)
Singapore Petroleum Co (Sept 27: $6.55) TP: $6.70
MAINTAIN HOLD. SPC reported first oil production at its 40 %-held Oyong field in Indonesia. Although SPC's E&P operations will benefit from our higher crude price assumptions, the majority of earnings is still dominated by refining. Therefore, SPC's sum-of-parts target price is upgraded just marginally to $6.70, from $6.60 previously (4% upside), as we have upgraded oil price assumptions but maintained refining margin assumptions. SPC's share price rally this year was mainly fuelled by the strong rise in refining margin. However, while the refining margin has dropped more than 50% from this year's peak, SPC's share price fell by only 6 %. - DBS Vickers Securities (Sept 25)
United Engineers (Sept 27: $3.86) TP: $6.38
BUY. UE is expected to benefit from asset value enhancement on its investment properties, in particular UE Square. UE is financially healthy with gearing generally below lx. It has a healthy order book of $1 billion for the engineering and construction business. Its early foray into the local residential property market has paid off with two recent projects achieving attractive profit margins. Property development is expected to underpin UE's growth for next few years. Beyond that, we are expecting contributions from the environment engineering business to kick in. At the current share price of $3.84, UE is trading at a steep discount of 39% to a sum-of-parts valuation of $6.38 per share. - NRA Capital (Sept 27)
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