Local Brokerages Stock Call 28 March 2013

From OCBC:

Oil and Gas sector: Takeaways from IHS Petrodata’s seminar
We recently attended IHS Petrodata’s seminar on the offshore oil and gas sector, and came away feeling positive on prospects of selected sub-segments of the industry. For the deepwater drilling market, day rates have recovered to 2008 levels, especially the ultra-deepwater segment. Rates for harsh-environment rigs have also been climbing. 2013 is also expected to see the development of more global oil and gas field projects, while sentiment on the OSV market has generally improved. In particular, average earned day rates in Asia Pacific are showing signs of an upturn, especially for AHTS vessels smaller than 6,000BHP in Indonesia and Malaysia. Maintain Overweight on the broader oil and gas sector, with Ezion Holdings [BUY, FV: S$2.33], Keppel Corporation [BUY, FV: S$12.68], Sembcorp Marine [BUY, FV: S$5.84], and Nam Cheong [BUY, FV: S$0.30] as our preferred picks. (Low Pei Han, Chia Jiunyang)

Yoma Strategic Holdings: Moving into luxury tourism
Yoma Strategic Holdings (Yoma) reported that it would take a 70% stake in Chindwin Holdings which would acquire several connected tourism assets. First, Chindwin would acquire 75% of a balloon tour company “Balloons over Bagan (BOB)” for US$10.7m. BOB is the only hot air balloon operator in Myanmar and has had a profitable track record since it began operations 13 years ago. We understand that this acquisition price translates to a forward PE multiple of 6 to 8 times. In addition, Chindwin would acquire a 75% stake in 21.2 acres of land in Bagan for US$3.75m. This acquisition is conditional on the present owner converting the existing land-rights to allow for the construction and operation of a hotel business. Overall we see these acquisitions to be positive and allows Yoma to capitalize on the burgeoning demand for luxury tourism in Myanmar. While we believe the company holds meaningful franchise value as a leading developer in Myanmar, most positives are likely priced in at current prices. Maintain SELL with a 12-month fair value estimate of S$0.71 (20% premium to RNAV).  (Eli Lee)

Keppel Corporation: Good demand from Mexico; secures four more jack-ups
Keppel Corporation (KEP) announced that it has secured contracts to build four jackup rigs worth US$820m for Mexican drilling company, Grupo R. The rigs will be built to KEP’s proprietary KFELS B Class design and are scheduled for delivery progressively from 2Q15 to 4Q15. Recall that KEP also secured contracts to build two similar rigs for PEMEX in Dec last year for US$420m. As mentioned in our earlier notes, the strong demand coming from Mexico is within our expectations, as PEMEX plans annual capital expenditures of ~US$30b till 2019 to stem the country’s declining oil production. We see KEP as one of the beneficiaries of these developments. The group has secured new O&M orders worth about S$1.6b YTD, accounting for ~32% of our full year estimate. Maintain BUY with S$12.68 fair value estimate on KEP. (Low Pei Han)
 
Nam Cheong Ltd: US$72m contract for six vessels
Nam Cheong Ltd announced that it has sold six vessels worth a total of US$72m to two of its existing customers. Two 5,150 bhp Anchor Handling Towing Supply (AHTS) vessels are sold to Icon Offshore Berhad – one of Malaysia’s largest OSV group, while four Emergency Response and Rescue Vessels (ERRVs) will be sold to a Singapore-based company for deployment to the North Sea. The vessels are scheduled for delivery between 2Q13 and 4Q14. We currently have a BUY rating and S$0.30 fair value estimate for the counter. (Chia Jiunyang)

From CIMB:

Parkway Life REIT

Defensive without losing sight of growth

NEUTRAL - Maintained | S$2.48 - Tgt. S$2.40

We recently brought Plife to see investors in Europe. Management articulated moves it undertook to strengthen its portfolio to ensure a sustainable DPU and further strategies to maintain DPU growth. We sense increased optimism about acquisitions this year. Factoring in higher retained earnings partially offset by higher acquisition accretion, we lower DPUs. Our DDM-based target price (discount rate: 6.7%) is, however, raised after rolling forward valuations. Maintain Neutral for premium valuations with catalysts from higher-than-expected accretion from acquisitions.  

From UOB KH:

Kreuz Holdings

Kreuz has recently inked a deal to build a game-changing deepwater
subsea vessel, which will lift the group’s capability to match that of leading
global subsea players. We expect the vessel to contribute a net profit of
US$6m-11m per year, lifting earnings by 13-23%. Maintain BUY with higher
target price of S$0.68 (previously S$0.53), given attractive 2014F PE of 4.5x
and a respectable 4-year EPS CAGR of 15% (2011-15).

Mapletree Industrial Trust

MIT is developing a S$108m (S$281psf) built-to-suit data centre for Nasdaqlisted
Equinix, with an option to upsize the investment to S$217m. Yield-oncost
is attractive at 7.5-8.0% when completed in 2H14, while income stability
is secure with a 20-year lease agreement. Maintain BUY with a higher target
price of S$1.66 (from S$1.62), factoring in a 1% dip in DPU in FY14-15
during construction and a 3% accretion in FY16.

GuocoLeisure - Portfolio Of Undervalued Assets In A
Global City (GLL SP/BUY/S$0.885/Target: S$1.19)
GLL’s sustained profitability and huge margin of safety from its
undervalued asset portfolio make it an attractive buy for value
investors 

From DBS:

Mapletree Industrial Trust has signed an agreement to develop
a ‘built-to-suit’ facility for Equinix Singapore, a 7 storey, high
specification property located in One-North. We like this deal
as (i) the long lease provides good income visibility for this
proposed investment, with annual step ups providing longer
term organic growth (ii) high returns of cost of 7.75% (on
estimated rent of S$2.0 psf pm) for this property, which will be
accretive to distributions and (iii) quality earnings backed by a
blue chip tenant - Equinix Singapore is a subsidiary of
NASDAQ-listed Equinix Inc. a global interconnection and data
centre company. Target price is adjusted slightly higher to
S$1.46 (Prev S$ 1.43) after this latest deal has been factored
in. Maintain HOLD call, as upside to TP is limited. 

Keppel Corp has secured contracts to build four jackup rigs
worth US$820m in total from Mexican drilling company,
Grupo R. The jackup rigs are scheduled for delivery
progressively from 2Q 2015 to 4Q 2015. We expect more
orders to come from the Mexican market as PEMEX, the
Mexican national oil company has announced investment
plans of US$25.3bn for 2013, of which US$20bn will be
targeted at upstream activities. It plans to add between eight
and 12 offshore platforms to its fleet. These latest contracts
bring Keppel's YTD order win to S$1,590m, making up 26.5%
of our full year assumption of S$6bn. Maintain BUY, TP:
S$13.00.

Nam Cheong announced the first round of contract wins in
2013, securing US$72m worth of contracts for 2 AHTS and 4
ERRV (Emergency Response and Rescue) vessels. The two AHTS
vessels are part of Nam Cheong's build-to-stock series and we
estimate 15 of the 19 vessels scheduled to be completed in
FY13 have now been sold already. The order for the 4 ERRVs,
which will be built on a build-to-order basis, could add further
upside to our FY14 numbers. Orderbook now stands at about
RM1.3bn. This underpins robust earnings trajectory for the
Group in FY13/14. Maintain BUY with TP of S$0.30. 

From Maybank KE:

Noble Group : Leaner Is Better; Buy, TP $1.53
 NOBL SP | Mkt Cap USD6.3b | ADTV USD20.8m
    Ø   We  are  positive  on  Noble’s  new strategic direction to become a
    leaner  version  of  its former self. We believe some of its key drives
    over the next 12-24 months will bear immediate and tangible fruits.
    Ø   The  pricing  and  takeup  on Noble’s recent 5-year MTN issuance is
    evidence  that  the  company’s  healthier  balance  sheet and will have
    immediate positive impact on bottomline.
    Ø  Reiterate BUY with a Street-high TP of SGD1.53, pegged to 13x FY13F.
    Potential  catalysts  include  divestment gains and announcement of JVs
    with strong partners.  
Maintain BUY. We see company-specific reasons to be positive on
earnings outlook. Noble’s lower gearing should also find favor with
investors. We adjust FY13-FY15F earnings up by 1-2%, with TP of
SGD1.53 remaining pegged to 13x FY13F. Potential catalysts include
divestment gains and announcement of JVs with strong partners. 

From RHB-DMG:

Second Chance (BUY/TP: SGD0.53) recorded a 42.4% YoY
decline in 2QFY13 PATMI to SGD3.0m. This was despite a 9.6% growth in
revenue. The PATMI decline was largely due to higher operating expenses and
significantly lower property revaluation gains. Going forward, its apparel
business is expected to continue to do well, supported by its new stores in
Malaysia, but this is likely to be somewhat offset by lower rental income (it had
disposed a few investment properties in FY12) and possibly lower profits from
its gold business as gold prices remain softer. Management has guided that it
will distribute dividends of SGD0.034 / share for FY13. At the current price, this
would translate into an attractive yield of 8.2%. (Lynette Tan)

Nam Cheong: Closing 1QFY13 With Massive Win (BUY, S$0.26, TP:
S$0.35)
TP lifted to SGD0.35, maintain BUY. Following the order win, we raise our
FY13-14F EPS by 1%-2%. Nam Cheong remains one of our top picks in the
small-cap oil & gas space, and our 10x P/E valuation is at a large 33% discount
to rig builders Keppel and SMM. Maintain BUY.  

  

Local Brokerages Stock Call 27 March 2013

From OCBC:

Neptune Orient Lines: Turnaround still intact
The Shanghai Containerised Freight Index has exhibited relative stability since the start of the year, and this should provide a good base for upcoming generate rate increases such as those enacted under the TSA for Apr. Although there is a possibility of a supply outpacing demand, several liners have expressed confidence in the resilience of rates this year and continue to push through GRIs beyond Apr. Nonetheless, the major liners acknowledge potential threats to profitability and have reiterated the need for the industry to strike a balance between competition and sustainability. Although some liners have taken heed – such as the G6 and CKYH alliances who have cancelled their planned Asia-Europe service launches this year – there remains some routes that are particularly susceptible to rate fluctuations, and we adjusted our estimates downwards for NOL accordingly. Regardless of this adjustment, our view on NOL’s turnaround in FY13 remains intact and we maintain our BUY rating with a fair value of S$1.38. (Lim Siyi)

OKP Holdings: Revenue visibility but margin compression
To recap, 4Q12/FY12 results were generally in line with our expectations. While FY12 net income of S$104.5m (-5% YoY) was 5% lower than our estimate, PATMI of S$12.4m (-53% YoY) was 6% higher than what we expected. The lacklustre results were due to a weak economy, price competition and climbing labour costs. OKP declared a first and final dividend of 1.5 S cents/share, lower than the 2 S cents that we and the street had expected. FY12 dividend translates into a yield of 2.9%. We believe that management is conserving cash to increase its flexibility to tender for government projects. Following a change in analyst, we have adjusted our forecasts for OKP’s FY13 and FY14 performance. Applying a P/E multiple of 11x to FY13F EPS, we derive a FV of S$0.48/share, slightly higher than our previous FV of S$0.46/share. We maintain our HOLDrating on OKP. (Sarah Ong)

From UOB

Halcyon Agri Corp - Solid Midstream Rubber Player With
Potential For Upstream Expansion
(HACL SP/NOT RATED/S$0.475)
We see the potential for M&As in the upstream segment, which
would enhance Halcyon’s position in natural rubber

From Maybank KE

ST Engineering: Defence’s Turn In The Limelight; Buy, TP $4.4
STE SP | Mkt Cap USD10.5b | ADTV USD5.8m
Ø We reiterate our BUY call on ST Engineering (STE), as a positive defence business outlook lends support to the thesis that it should trade at a premium to its historical average.
Ø Two of STE’s largest contracts announced to-date have been derived from its defence business, and both from its Marine arm. We continue to see healthy defence expenditure trends both in terms of Singapore (CAGR 4%) as well as from STE’s overseas customers (CAGR 4-5%).
Ø We believe STE’s 1Q13 orderbook will set yet another record (~SGD13b), providing the earnings visibility that would catalyse its share price appreciation. Our target price of SGD4.40 is pegged at 21.6x FY2013 PER, 1 SD above its historical average. Investors who own the stock before Ex-Div on 26 Apr will stand to enjoy SG 13.8 cts / share of dividends (translating to ~3.3% yield).

BreadTalk Group: Have a MINT, Have a BreadTalk; Not Rated
BREAD SP | Mkt Cap USD194.5m | ADTV USD0.44m

Ø Primacy Investment, a wholly-owned subsidiary of Minor International (MINT) in Thailand, surfaced as a shareholder in January and purchased an additional 2.58% last week at an average of SGD0.83 a share, reaffirming our suspicions that Minor may just be getting started. With BreadTalk’s premium reputation as a bread operator, and entrenched position in Asia, this could be the prized jewel which Minor has been waiting for.
Ø BreadTalk offers MINT an excellent portal to extend its cross-selling channels, as well as an opportunity to strengthen and add prominent brands to its growing overseas portfolio. It is a leading bakery chain, which has restaurants and cafes also figuring in its portfolio.
Ø Current valuations of BreadTalk are below peers with a forward consensus P/E of 15.6x against 16.5x. We believe BreadTalk deserves a premium valuation for its multi-country success in growing its bakery chain.
 

 

Local Brokerages Stock Call 26 March 2013

From CIMB:

Raffles Medical Group
RFMD had been hit by a series of setbacks in the last two weeks. We think this is the time to revisit its financials, operational expansion and various greenfield projects. Our conversation with management suggested that we are on the right track with this argument. No change to our EPS but our target price has been raised, now based on 25x CY14 P/E (from 22x), on par with its regional peers given its proven execution. Maintain Outperform with the resumption of operating efficiencies providing potential catalysts.  

Outperform with higher target price
Our numbers are not affected by the setback in Orchard Road as we had not
factored in growth from services there. Similarly, our numbers do not capture
sale proceeds from any sale of this real estate. We lift our target to 25x CY14
P/E (from 22x) to reflect its proven execution that should place it on par with
its regional peers. Accordingly, our target price climbs to S$3.81 (from S$3.50). 

From UOB KH

Mid Cap Highlight: Ying Li - Deeply Discounted Asset Play
The stock is currently trading at a 46% discount to its RNAV despite gaining
21.6% ytd. With the appointment of a new CEO, we see potential new growth
drivers. Share price catalysts include a potential spin-off of its retail
properties into a REIT to recycle capital. Maintain BUY. Target price: S$0.65.  

Hafary Holdings (HAFA SP) –
Technical BUY with +26.4% potential return
Last price: S$0.435
Resistance: S$0.55
Support: S$0.375
BUY with a target price of S$0.55 with stops placed below
S$0.40. The stock may continue to form new highs after it
gapped up and is trending above its mid Bollinger band as
well as its 20-day exponential moving average. Its
Stochastics indicator has hooked up. Watch to see if its MACD
indicator could form a bullish crossover.

Yoma Strategic Holdings (YOMA SP, Z59) –
Technical SELL with +14.4% potential return
Last price: S$0.795
Resistance: S$0.925
Support: S$0.51
SELL with a target price of S$0.68 with stops placed above
S$0.83. The stock has broken below its rising trend line and
formed lower highs and lower lows. Its mid Bollinger band
could be acting as a resistance. A break below its 40-day
moving average could see more selling pressure. Watch to
see whether the stock could be supported above its 150-day
moving average.

First Resources (FR SP, EB5) –
Technical SELL with +13.6% potential return
Last price: S$1.90
Resistance: S$2.20
Support: S$1.50
SELL with a target price of S$1.64 with stops placed above
S$1.96. The stock appears to form lower highs and lower
lows as well as a potential bearish crossover. A dead cross on
its 50- and 200-day moving averages has also formed. Watch
to see whether its Stochastics and MACD indicator will form a
bearish crossover as its RSI indicator has turned down.
Our institutional research has a fundamental BUY with a
target price of S$2.35. 

From OCBC: 

UE E&C: Healthy pipeline of projects
We met the management of UE E&C last week for an update. Despite the labour crunch in the construction industry and the cooling measures introduced by the government, management remains upbeat. The group has implemented productivity enhancement measures and adopted new technologies to facilitate work processes to help mitigate the tighter manpower constraints and rising costs. Meanwhile, the group has an estimated order-book of S$600-800m, anchored by four key residential developments: Austville EC, Watercolours EC, Prince Charles Crescent and the new Punggol EC. We now roll forward our estimate to FY13F and incorporate projections for the new Punggol EC project. This increases our SOTP fair value to S$0.82 (previously S$0.68). Upgrade to BUY. (Chia Jiunyang)

Global Palm: HOLD with lower S$0.17 FV
Global Palm Resources (GPR) continues to see a rise in its inventory of CPO (crude palm oil), this time more than doubling to 7.7k tonnes from 3.4k tonnes at end 3Q12 (also up 19% YoY). And with the continued high production of CPO (which is likely to continue into Mar as company expects FFB production to increase some 11% this year), GPR may see its stock pile inching even higher going into 2Q13. Meanwhile, new planting has been slow – GPR only added 331k ha last year – and plans to plan 300-400ha this year, citing tough negotiations with the local population. Recent FY12 results were slightly disappointing – GPR reported a net loss of IDR39.8b; but if we strip out the bio-asset fair value losses, core earnings would have come in at IDR51.5b, or 10% below our forecast. In view of the still muted outlook for CPO, we cut our FY14 forecast for revenue by 13% and core earnings by 12%; this also brings our fair value down from S$0.19 to S$0.17, still based on 10x FY13F EPS. Maintain HOLD. (Carey Wong)   

By RHB-DMG

CapitaCommercial Trust: Rise of another icon (Neutral, S$1.61, TP:
S$1.70)
We visited CapitaGreen’s showroom yesterday morning and were
wowed by its: i) 40th-floor sky garden and restaurant, ii) innovative
technology which directs cool air inwards, and iii) unique dual facade
that cuts solar heat, among others. Set to be CCT’s next growth driver,
it offers c. 700,000 sq ft of Grade-A office space and is scheduled to
receive its TOP by 4Q14. Due to a dearth of immediate drivers, however,
CCT is still a NEUTRAL and its SGD1.70 TP remains unchanged as the
contribution from CapitaGreen would only stream in by FY15. 

From Maybank KE

Suntec REIT: Suntec City Mall AEI in full gear; Buy TP $1.90
SUN SP | Mkt Cap USD3.2b | ADTV USD11.5m
 
Asset enhancements at Suntec City Mall (SCM) have stepped up with the impending completion of Phase 1 and the commencement of Phase 2. Judging by the intensity of the refurbishment works, the overall AEI should be completed on schedule in 4Q14.
Post-AEI rental increases could also surpass expectations. We think SGD13.50 psf/pm (vs SGD12.59 psf/pm targeted by Suntec) is possible and we have thus raised FY14F DPU by 1% to reflect this. This should offset the expected FY13 dip in DPU caused by the AEI.
Reiterate BUY on a higher TP of SGD1.90. We are positive on the earnings enhancement potential of the ongoing AEI, which has seen pre-commitments hitting 83% for Phase 1 and 37% for Phase 2, which is completing at the end of 2013.

Local Brokerage stock call 25 March 2013

From OCBC:

RAFFLES MEDICAL GROUP
WHAT’S NEXT AFTER ANOTHER SETBACK?

- Second disappointment in two weeks
- Focus could now turn to China expansion
- Consensus PATMI estimates too bullish

Raffles Medical Group (RMG) announced last Friday that its resubmission for the change of use of its commercial podium at 30 Bideford Road to a medical centre had been unsuccessful. This is the second setback faced by RMG in as many weeks as it had only recently lost out on a land tender for the development of a private hospital in Hong Kong. Management could now possibly seek to sell the property, retain it for rental purposes, or keep it for partial use and partial rental. Meanwhile, we expect RMG to continue to grow its Singapore business and to step up its negotiation efforts with regards to its recent non-binding Letter of Intent for a proposed integrated international hospital development in Shenzhen, China. Maintain HOLD on RMG, with an unchanged fair value estimate of S$3.01.

MAPLETREE LOGISTICS TRUST

SECOND DISPOSAL ATTEMPT - Sale of Singapore property at S$15.5m - Transaction likely successful this time - Potential distribution of disposal gains Mapletree Logistics Trust (MLT) announced last Friday that it has entered into an option to purchase agreement for the divestment of 30 Woodlands Loop in Singapore at a sale price of S$15.5m. This represents a significant premium to its purchase price of S$10.3m in 2007 and its valuation price of S$11.0m in Mar 2012. The divestment is expected to be completed by May, and is expected to generate a net disposal gain of ~S$5.0m, which will be distributed to unitholders (subject to clarification on tax treatment). We re-jig our forecasts to take into account the divestment and the potential distribution of the net disposal gains in FY14. However, our fair value remains unchanged at S$1.25. We maintain our BUY rating on MLT.  From UOB: Ezion secured two new charter contracts and approvals for its marine supply base in Australia in March. We raise our 2013-15 earnings forecasts by 6- 13%, but our target price remains at S$2.40 after factoring in a 5% EPS dilution from a placement of 50m new shares. We expect Ezion to clinch more charters following its recent breakthroughs in Indonesia, Malaysia, Vietnam and India. Maintain BUY.  Maintain BUY. No change to our target price of S$2.40, which is pegged at 11x 2014F fully-diluted EPS (adjusted for dividends on perpetual securities), which is 15% above the long-term 1-year forward PE mean of 9.6x for the offshore support vessel-owner segment of the offshore & marine sector. While our net profit forecasts have been raised, EPS will be diluted by the issue of new shares.  Genting Hong Kong While GENHK’s 2H12 earnings recovery was impressive, its near-term valuations would be dampened by concerns of rising competition for its 50%-owned RWM in the intermediate term. While there will be potential long-term upside driven by the cruise divisions, valuations are rich for now. On the positive end, we have raised our earnings outlook. We maintain our SELL call, but with a higher target price of US$0.39. From DBS:  OSIM – Growth not over yet; initiate coverage with a BUY recommendation, target price S$2.25 We initiate coverage on OSIM with a BUY recommendation, for 18% upside to S$2.25 TP. We believe OSIM is no longer the entity it was before the write-off of Brookstone in FY08. Quarterly results from 1Q09 to 4Q12 have shown that earnings growth has been sustainable. OSIM is now a stronger entity and better positioned for further growth. China and product innovation are expected to drive the 16% earnings growth CAGR from FY12-FY14F that we are forecasting. OSIM is a beneficiary of the rising middle class population in China, with 56% of revenues originating from North Asia. Rising disposable income, a strong Rmb and increasing availability of credit will encourage Chinese consumers to spend more. OSIM now creates demand by innovating new products to target new market segments.    From Phillips: Courts Asia Limited – Initiation Recommendation: BUY Previous close: S$0.98 Fair value: S$1.14 Investment Actions Based on our DCF valuation, assuming WACC of 7.1%, and terminal growth of 2.5%, we derive a target price of S$1.14. This gives an implied P/E multiple of 15.6X, and P/B multiple of 2.1X. Based on the investment merits highlighted above, and current share price, we initiate coverage of Courts Asia with a BUY recommendation.

Local Brokerage stock call 22 March 2013

From CIMB:

Armstrong Industrial

Recovery priced in

UNDERPERFORM - Downgrade | S$0.31 - Tgt. S$0.29 We believe Armstrong’s post-FY12 results share price outperformance has priced in all the positives from its automotive segment and cost saving measures. In addition, our channel checks reveal an unexciting outlook for the HDD industry in 1H13. Our estimates are unchanged as we have already factored in strong sales growth from the automotive segment and recovery in data storage in 2H13. Our target price stays at S$0.29, pegged at 8x CY14 P/E, its 5-year average. Following the strong share price gains recently, we downgrade our rating to an Underperform from a Neutral. De-rating catalysts could come from potential earnings disappointments. From OCBC:  Ezion Holdings: Secures service rig contract with good ROE Ezion Holdings (Ezion) announced that it has secured a charter contract worth about US$48.2m over a three year period to provide a service rig for an international oil and gas major for work in the Arabian Gulf. The unit will be deployed before end 2013 after refurbishment and upgrading in a Middle Eastern yard. We estimate a good ROE of slightly more than 55% for this project, vs a forecasted ROE of 22% for Ezion in FY13. Ezion’s stock price has appreciated by about 18% YTD vs the STI’s 3% rise over the same period. However, we still see an upside potential of more than 15% over a one-year time frame. We tweak our earnings estimates, and based on 12x blended FY13/14F core earnings, our fair value estimate rises from S$2.33 to S$2.35. Maintain BUY. (Low Pei Han)  KSH Holdings: Placement exercise to raise S$13.9m KSH recently conducted a placement for 30.9m new shares and 4.1m existing treasury shares at 40.8 S-cents per share. This was at a 5.2% discount to the weighted average traded price of 43.0 S-cents on 11 Mar 2013 and raised S$13.9m of capital for the group. Shortly after the placement, KSH deployed S$1.9m to increase its stake in its Beijing condominium project (Liang Jing Ming Ju, Phase 4) from 26.24% to 45.00%. Pending further visibility on capital deployment, we are overall neutral on this placement but note it would increase the size of the public float and possibly improve the counter’s trading liquidity, which has been low historically. Maintain BUY on KSH. Our fair value estimate dips mildly to S$0.61 from S$0.62, due to a mild dilution effect, but our forecast for buoyant earnings growth over FY13-14 remains unchanged.  (Eli Lee)      From UOB KH: Silverlake Axis- Decoding The Positives; BUY Initiation (SILV SP/Buy/ S$0.625/Target: S$0.91) We initiate coverage on Silverlake Axis (SAL) with a BUY recommendation and a street-high, DCF-based target price of S$0.91, implying a 45.6% upside from the current price.  From DBS: Kreuz - Valuations still cheap; industry outlook robust. Maintain BUY with higher TP of S$0.58 Kreuz’s earnings delivery has consistently exceeded our expectations as they have continued to secure additional work at higher margins from customers, based on their execution track record. The robust industry outlook underpins order book momentum and earnings growth trajectory. Kruez is building asset base to propel future growth. It has won US$155m worth of orders in FY12, and current orderbook stands at US$205m, of which about 90% will be recognised in FY13. Valuations are still cheap at 4.6x FY13 earnings; maintain BUY with higher TP of S$0.58 (Prev S$ 0.43).