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Top five Buys in Singapore : DBS, Genting, YZJ, Capitaland and M1
We drop ST Engineering, Keppel Corp and HPH Trust from our top five Buy list
and replace them with DBS, Genting Singapore and Yangzijiang Shipbuilding.
In Singapore, we have Sell recommendations on Ezra Holdings and Singapore
Airlines. Average P/E for Singapore stocks under DB coverage of 16.8x/14.9x
for 2013/2014E, respectively, do not look particularly exciting versus EPS
growth of 11.8%/13.1% over 2014/2015E, respectively.
Top Buys
We drop ST Engineering because it has rallied 14% over the past 15 weeks. In
its place, we have picked Genting because of its potential margin expansion at
RWS, the improving China macro outlook and its operating leverage. We see
strong 50% earnings growth in 2014E. Yangzijiang Shipbuilding replaces
Keppel Corp, as we think order flow has better upside potential versus market
expectations. The consolidating sector should increase its market share and a
number of its 51 contract options issued should be exercised in the coming
quarter. Lastly, we have included DBS and dropped HPH Trust because we
think DBS is well positioned for an eventual rate rise in the future. The bank is
growing its wealth management market in Singapore and Hong Kong, in
addition to re-jigging its HK loan book from lower-margin mortgages to highermargin
trade financing. We maintain CapitaLand and M1 on the list.
Increasingly visible structural reforms in China and growing domestic
consumption should benefit CapitaLand. We expect a margin improvement at
M1 over time and like its recent positive ARPU momentum we estimate a
dividend yield of 4.4% in 2013, rising to 5.9% in 2015.
cimb
| Yangzijiang Shipbuilding: Healthy order flow for replenishment Summary: Yangzijiang Shipbuilding (YZJ) has recently secured 17 contracts worth about US$871m, bringing total orders won YTD to US$2.096b. These new contracts are scheduled for deliveries in 2015-2016, and provide much-anticipated replenishment of the order book for execution of orders further down the road. Newbuild prices for bulk carriers in Chinese yards have been on a slow but steady uptrend since early this year, but additional monitoring is needed to determine its sustainability, which is dependent on the global economic recovery, the rate of China?s yard consolidation process as well as any further tightening in China?s money supply. With a gradually recovering newbuild market, we raise our peg from 8x to 9x P/E, while rolling forward our valuations from blended FY13/14F earnings to FY14F earnings, resulting in a slight rise in YZJ?s fair value estimate to S$1.04 (prev. S$0.99). Maintain HOLD. (Low Pei Han) |
Monday Short seller had to buy .but now the price look a bit higher compare to yesterday .just waiting for next down ware
What good thing now us gov shitdown . Fund managers analysis said . The us en comic will be drop . And unemployment rate will up . So the QE3 will not be reduced by tjis year
News and for both