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Technology:
Tech shares -14.0% since beginning May vs STI’s -5.7%, hit by potentially lower spending by companies and consumers if Europe's debt problems take toll on global economic growth.
But CIMB still views outlook as attractive, given promising sequential semiconductor growth over the last five quarters, on the back of tight manufacturing capacity. Recent sell down provides opportunities for bottom-picking the following counters: Venture, Armstrong, Broadway, Elec & Eltek.
Raffles Education
Raffles Edu is down 4.7% to year low of $0.305 as broad market weakness further dampens interest in stock, already bogged down for months by lower student enrollment in China, lack of near-term growth drivers due to long gestation of new colleges. Shares down 21% since beginning 2010 vs STI’s 3.1% decline.
Mgmt expects 5 colleges it invested in FY09 to start contributing only from FY11 while contributions from another 8 new colleges established in FY10 due from FY12
Genting Singapore which recently posted a stronger-than-expected set of 1Q10 results may continue to do well, buoyed by the strong influx of tourists into Singapore.
According to the STB, tourist arrivals jumped 20.4% YoY (+1.1% QoQ) to 938,000 foreigners. Note that it is also the fifth straight month in which record monthly visitor arrivals were logged.
The S'pore govt recently announced that the casino entry levy collected by the 2 IRS amounted to about S$70m as of 10 May.
But since Marina Bay Sands only opened its doors to the public in late Apr, the bulk of the collection is likely to have come from Resorts World Sentosa which started its casino operations on 14 Feb.
Mgmt also revealed that its hotels continue to see high occupancy rates (>60%) since opening with an average room rate of S$250/night.
Meanwhile, it has ramped up its daily visitor intake for its theme park, Universal Studios for the upcoming Jun school holidays.
According to the STB, tourist arrivals jumped 20.4% YoY (+1.1% QoQ) to 938,000 foreigners. Note that it is also the fifth straight month in which record monthly visitor arrivals were logged.
The S'pore govt recently announced that the casino entry levy collected by the 2 IRS amounted to about S$70m as of 10 May.
But since Marina Bay Sands only opened its doors to the public in late Apr, the bulk of the collection is likely to have come from Resorts World Sentosa which started its casino operations on 14 Feb.
Mgmt also revealed that its hotels continue to see high occupancy rates (>60%) since opening with an average room rate of S$250/night.
Meanwhile, it has ramped up its daily visitor intake for its theme park, Universal Studios for the upcoming Jun school holidays.
Shipping/NOL:
Despite staging an impressive turnaround, the container shipping industry still faces a disconnect between valuations and the underlying demand/supply dynamics. Current sector valuation above 1x P/BV is not justified by the daunting 20% capacity oversupply by the end of 2010.
A combination of peak season demand, transpacific volume recovery and near term container box shortage has fuelled a freight rate increases and a sharp rebound in shipping stock prices, which might lead to continued outperformance in the 3Q. But supply discipline may break down as profits emerge and cap returns. Amongst the shipping stock, OOIL has the most attractive valuationat 0.8x P/BV while NOL appears stretched at 1.2x P/BV.
Higher Low formed...
Weakest Stock turning up...
Gapped up and move up further...
Signs of market is turning the corner...
AsiaTravel recently posted a weak set of 2Q10 results which saw net profit dropped by 41% YoY to $1m. The disappointing 2Q earnings were due to weak sales from Thailand and Dubai, as well as higher operating costs incurred for its new products.
In the near-term, Thailand violence may continue to drag down hotel room bookings.
On the other hand, sales of its online packages which Universal Studios as the key attraction have not been up-to-expectation. The stock trades at 15x FY10 and 11.3x FY11 P/E.
Haha thanks.
And thanks for all the updates on this thread.
Happy trading ...
KEahzq ( Date: 03-Jun-2010 14:59) Posted:
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According to Bloomberg, industry peers such as Ryanair, AirAsia and Virgin Blue,etc are trading at avg P/E of about 11x P/E and 1.2x P/B compared to Tiger Air's valuation of 12.8x P/E and 4.3x P/B
KEahzq ( Date: 03-Jun-2010 15:06) Posted:
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Tiger Airway reported FY10 net profit of S$28.2m, which was a sharp turnaround from S$51m loss in FY09. Going foward, FY11F earnings growth will be driven by scheduled delivery of 7 aircraft over the year.Long-term, I see expansion coming from by its robust business model and growing regional air travel.
However, valuation for the stock does not seem very attractive compared to its peer.
However, valuation for the stock does not seem very attractive compared to its peer.
Hey Chris,
got money to hold, you can possibly hold them...
If for contra, take part of your profits and risk the others...
That's what I think.
Need more limit, just call your broker and increase it!
haha...
chris168 ( Date: 03-Jun-2010 14:52) Posted:
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I bought some WT yesterday ... exactly the reason for the pretty attractive upside potential ...
I have been accumulating for the past 2 days, max my buying limit ... seems quite a good choice judging by today's market ...
Take some profits off the table? ... since I can't buy ...
OR,
Open more accounts and get carry away ... by greed ... hehehe
KEahzq ( Date: 03-Jun-2010 10:08) Posted:
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Olam recently registered a good set of results for 3QFY10 (Jun YE) with the headline numbers largely in line with our house's expectations.
Looking ahead, we expect to see more evidence that management is able to execute well on its stated six‐year plan to integrate the supply chain business with the upstream/midstream assets.
Kim Eng has a BUY recommendation with TP of $3.00.
KSH Holdings announced a new contract win worth S$70.6m from Lippo Real Estate, a subsidiary company under Lippo Group, for the construction of Centennia Suites located in the prime River Valley Road area.
Notably, this is the 2nd residential project that the Group has been awarded by Lippo Group, following the ongoing Marina Collection residential development at Sentosa Cove.
With this new contract win, the existing order book of the Group’s Construction business now stands at about S$355m. According to mtgm, the unfulfilled contract value for all existing contracts on hand is expected to be completed by May 2013. Based on Bloomberg estimates, the stock now trades at about 3.1x foward P/E.
Mid-day summary:
Interest in Singapore stocks firmer. STI +2.1% at 2784.19 midday vs low of 2763.32 (+1.3%); immediate resistance at 2800 (last tested May 19). All FTSE ST sub-indexes up with market breadth at 4 gainers for each decliner. Shipping, energy plays among best performers as investors load up on cyclical stocks, with FTSE ST Maritime Index +3.6%, FTSE ST Oil & Gas Index +3.3%. Top performers include Noble Group, NOL, UOB, OCBC
Interest in Singapore stocks firmer. STI +2.1% at 2784.19 midday vs low of 2763.32 (+1.3%); immediate resistance at 2800 (last tested May 19). All FTSE ST sub-indexes up with market breadth at 4 gainers for each decliner. Shipping, energy plays among best performers as investors load up on cyclical stocks, with FTSE ST Maritime Index +3.6%, FTSE ST Oil & Gas Index +3.3%. Top performers include Noble Group, NOL, UOB, OCBC
Hey Niuyear,
What you mean by retype the contents?!
Cheers.
niuyear ( Date: 03-Jun-2010 10:32) Posted:
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Hi,
KEahzq
looks like you retype the contents ? Thank you for your update. :)
Straits Asia:
OCBC Research upgraded SAR to Hold from Sell citing recent price correction has factored in negative news, including weak 1Q10 and possible 2Q10 results but expects earnings recovery in 2H10 as efforts to replenish inventories, build coal-loading facility should contribute to earnings from 2H10. Softer oil prices also positive as fuel accounts for substantial portion of SAR's production costs. Raises target price to $1.82 vs $1.80.
OCBC Research upgraded SAR to Hold from Sell citing recent price correction has factored in negative news, including weak 1Q10 and possible 2Q10 results but expects earnings recovery in 2H10 as efforts to replenish inventories, build coal-loading facility should contribute to earnings from 2H10. Softer oil prices also positive as fuel accounts for substantial portion of SAR's production costs. Raises target price to $1.82 vs $1.80.
Wing Tai announced that its Chairman, Mr Cheng Wai Keung, had bought 1.6m shares in the open market on 31 May and 1 June, at an average of $1.528/share, increasing his deemed interest in the company by 0.2% to about 40%.
I believe that this underlines the management's confidence in the company and that the company is undervalued.
Kim Eng's target price remains at $2.50, representating over 60% upside potential.
I believe that this underlines the management's confidence in the company and that the company is undervalued.
Kim Eng's target price remains at $2.50, representating over 60% upside potential.
Biosensors recently reported a decent set of 4Q10 results which were slightly above mkt expectation. Net profit surged to US$9.1m (partly helped by a US$2.4m contribution from its 50%-owned JW Medical Systems) while total product sales in the 4Q were US$29.9m (+46% YoY), driven largely by robust growth in the sales of the BioMatrix drug‐eluting stent across all regions.
Management believes the Co is close to reaching its target of a 10% share of the drug eluting stent (DES) mkt.
Going forward, mgmt guides that product revenue, excluding licensing and royalty revenues, will range between US$135.0m and US$145.0m. In addition, the Company expects overall profitability to grow over FY10 levels despite the effect of higher revenues may be partially offset by increased R&D expenses.
In my view, Biosensors may be seen as an attractive takeover target by other bigger incumbents.
Management believes the Co is close to reaching its target of a 10% share of the drug eluting stent (DES) mkt.
Going forward, mgmt guides that product revenue, excluding licensing and royalty revenues, will range between US$135.0m and US$145.0m. In addition, the Company expects overall profitability to grow over FY10 levels despite the effect of higher revenues may be partially offset by increased R&D expenses.
In my view, Biosensors may be seen as an attractive takeover target by other bigger incumbents.
*HK Market Outlook*
Telecom equipment makers, however, should be positive. ) India "Economic Times" reports that India has agreed to allow imports of Chinese telecommunications gear certified by international security audit firms. The report also quote an official saying the India Government would allow self-certification if backed by a bank guarantee. This is positive to China telecom equipment makers as India said earlier that they will ban import of telecom equipment from China.
On stock specific, Comba (2342) looks interesting. It fell over 2% yesterday while peer company ZTE (763) posted a 5% jump, probably on the India newsflow. Thus Comba looks to be a good short term laggard play for speculators. I also like its fundamentals. Related tech/telecom companies may also outperform today, suggestions include Kingdee (268 HK), China wireless (2369) and Sim (2000).
As market turnover has been low in recent days, likelihood of a short squeeze is high. The main sector watch today is telecoms. Mainland media report that telecom operators can decide their own tariffs starting as early as August. Likely to see more bundling service tariff and downtrend of ARPU will continue so expect some weakness here.