Local Brokerage stock call 20 March 2013

From CIMB Thai Beverage

The third cog

OUTPERFORM - Maintained | S$0.61 - Tgt. S$0.77 From OCBC: POTENTIAL NEW REAL ESTATE PROJECTS -  Hints of expansion into new segments -  More updates expected on spin-off plan -  Share price to remain supported TEE International recently announced the establishment of two wholly owned indirect subsidiaries, TEE Industrial Pte Ltd (yesterday) and TEE Hospitality Pte Ltd (12 Mar), under its real estate unit, TEE Land Private Limited. The principal activity of both subsidiaries will be in real estate development. Though no other details were given, the choice of names suggests that the group is preparing to expand its property business further, into the industrial and hospitality services segments. Meanwhile, TEE’s plans to spin off its real estate business appear to be on track for a listing on SGX by May and we expect more updates in the weeks ahead. Its share price should remain supported in the near term by expectations of a special dividend if the plan succeeds, but we remain cautious on TEE until we see stronger contributions from its real estate business. We maintain our fair value estimate of S$0.30 and HOLD rating for TEE. From Maybank KE: SG Daily - OSIM International: Alert: 2013 Will Be A Milestone Year; Buy  TP $2.60 From DBS: Midas – Won €22.7m overseas contract; maintain BUY, TP S$0.60 Midas has won a €22.7m (approximately RMB182.8m) contract from Ural Locomotives, a joint-venture company between Siemens and Russia’s Sinara Group. Midas will supply aluminium alloy extrusion profiles for use in the manufacture of 100 electric train sets (1 train set = 5 train cars), or 500 electric train cars for commuter passenger service. Delivery for the contract is slated to take place progressively from 2013 to 2019. This is a fairly significant win for Midas in the export market, which shows their capability to win contracts outside of China. As deliveries are spread over 7 years from 2013 to 2019, the annual contribution of this contract to the top line is relatively small at c. RMB25m but nonetheless grows the Group's order book to c. RMB700m, compared to just RMB400m at the end of Feb. This is the second significant supply contract won this month, with the first being a c. RMB110m contract to supply 5 metro train projects in China. Maintain BUY and TP S$0.60. From UOB KH: Wilmar  Upgrade Wilmar to BUY because we foresee 2013 pre-tax margin to be more stable and have better visibility. As Asia’s largest agri-commodity company, Wilmar can have better bargaining power in a high-inventory market and enjoy lower raw material prices. Upgrade to BUY with a higher target price of S$3.80 after applying 15x PE (vs 13x previously) to its oilseed business.