Local Brokerages Stock Call 22 May 2013

From OCBC:
Singapore REITs: The burgeoning market
In our latest assessment of the S-REITs sector, we continue to see familiar trends. REIT managers have generally maintained firm growth in their trusts’ rental income, on the back of contributions from past investments and improved operational performance. For 2013, we are maintaining our view that S-REITs are likely to continue to deliver firm performance. Nevertheless, the S-REIT index has been enjoying a good run-up, raking up 36.7% gain in 2012 and another 12.7% increase YTD. Given that the S-REITs are now trading at a 24% premium to book value on average, we feel that it is prudent to be selective on S-REITs. We continue to prefer S-REITs with good growth potential, strong financial position and compelling valuations. In this respect, we continue to pick CapitaCommercial Trust [BUY, S$1.80 FV], Fortune REIT [BUY, HK$8.64 FV] and Starhill Global REIT [BUY, S$1.05 FV] as our preferred BUYs. Reiterate our OVERWEIGHTview on the broader S-REITs sector.
 
Bumi Armada Berhad: A good start to FY13F
Bumi Armada Berhad’s 1Q revenue jumped 46% YoY to MYR489m and net profit to shareholders increased by 22% YoY to MYR110m. The results were roughly in-line with ours and the consensus’ estimates. Segment results were mixed. Although the FPSO, OSV and T&I segments had YoY increases in revenue, only FPSO and OSV showed segment profit improvements. The OFS segment reported no activity for 1Q13. The group also benefited from disposal gain of a subsidiary of MYR9.4m, write-back of doubtful debt of MYR2.0m and a net foreign exchange gain of MYR3.0m. We tweaked our models slightly to reflect 1Q13 results and roll forward our estimates to FY13/14. Accordingly, our fair value increases slightly to MYR3.56 (previously MYR3.74) on 21x PER. Maintain HOLD.

From UOB KH:
Regional Banking- Approval for DBS to acquire Bank Danamon but with conditions.
DBS Group Holdings (DBS SP/BUY/S$17.35/Target: S$20.80)
FY13F PE(x): 12.1
FY14F PE(x): 10.8
The need for reciprocity. Outgoing governor Darmin Nasution said during parliament yesterday that Bank Indonesia has given approval for DBS to acquire up to a 40% stake in Bank Danamon (BDMN). Bank Indonesia would allow DBS to acquire BDMN in its
entirety at a later stage if Singapore reciprocates by granting Indonesian banks more access. Bank Indonesia is said to have sought Qualified Full Bank (QFB) licences for Bank Mandiri, Bank Rakyat and Bank Negara Indonesia.
Management at DBS has stressed repeatedly that majority control is important to DBS for the purpose of branding and integration of IT systems. Deduction to core capital is also punitive under Basel III if DBS only manages to acquire an associate stake in
BDMN.
The acquisition dilutes earnings and ROE for two years and would turn accretive in the third year. The deal is positive over the longer term by increasing DBS’ exposure to high-growth emerging markets. We have not factored in the impact from the acquisition of BDMN in our current target price of S$20.80 given the prolonged delay. Maintain our BUY recommendation and existing target price till we get clarity on the final outcome.

Singapore Plantation: 1Q13 results wrap-up: Results skewed by the large inventory drawdown from 4Q12. First Resources continue to outperform peers on higher ASP.
Mixed set of results, with First Resource continuing to outperform its peers with its better-than-industry CPO ASP and drawdown of inventory while better-than-expected results for Golden Agri Resources (GGR) was mainly supported by better performance
from its Chinese operations and inventory drawdown. Indofood Agri’s (IFAR) and Kencana Agri’s (KAGR) results were mainly dragged by lower CPO ASP, rising cost of production and weak CPO production on less external crop purchases.
Maintain UNDERWEIGHT. As CPO price is expected to trade sideways, plantation stocks are unlikely to outperform. However, some Indonesian plantation companies are better positioned as their estates’ younger age profile translates into stronger production
growth which will be able to mitigate the weaker ASP. SELL Golden Agri-Resources (GGR SP/SELL/Target: S$0.55) and Genting Plantations (GENP MK/SELL/Target: RM6.80). BUY Wilmar International (WIL SP/BUY/Target: S$3.80, First Resources (FR
SP/BUY/Target: S$2.35) and Bumitama Agri (BAL SP/BUY/Target: S$1.12). 

From DBS:
Earnings growth for the Singapore market is at a tepid
2% in 2013 and PE has re-rated to a rolling 12-mth
forward 14.7x (+0.5SD), thus there leaves little room for
upside on earnings potential. We turn our focus to asset
plays. At 1.5x P/BV, valuation for the Singapore market is
not excessive, and lower than 2.3x for South-East Asia
peers. We look for value to be unlocked in selected
property stocks, where the sector is trading at a 27%
discount to RNAV. The low interest rate environment and
significantly compressed yields in the S-REIT sector will
drive asset monetisation. Top picks are UOL, CMA,
Keppel Land and Banyan Tree which have potential for
value unlocking through divestments or REITS. Wing Tai is
a value buy, trading at 36% discount to its RNAV and
we expect upcoming launches to underpin share price
performance.

We continue to hunt for stocks with dividend yield upside.
Top picks are FCOT, Cambridge Industrial, Mapletree
Greater China and Religare Health Trust, Sheng Siong and
Singapore Post. 

Oil and Gas stocks have lagged the STI since April,
triggered by the dip in oil prices and disappointing 1Q
Results, except for Ezion and Kreuz which sparkled amid a
lacklustre reporting season. With oil prices rebounding,
and jack up market tightening, we expect interest in the
sector to return. Our picks are Keppel Corp, Nam Cheong,
CSE Global and Ezion. 

 

Local Brokerages Stock Call 21 May 2013

From OCBC:
Telecom Sector: Downgrade to NEUTRAL
All three telcos reported 1QCY13 results that came in within our expectations, with all of them meeting between 25% and 27% of our full-year forecasts. Going forward, other than M1 expecting moderate earnings growth, the other two are guiding for a pretty muted showing this year, with SingTel expecting stable group revenue while StarHub has eased its guidance to low single-digit revenue growth from single-digit previously. Besides the run-up in the telcos’ share prices YTD, which makes the yields less attractive, a more “risk on” approach could see investors switch out of defensive stocks. As such, we downgrade our rating from Overweight to NEUTRAL on the sector. 

Global Palm: HOLD; No catalysts yet
Global Palm Resources (GPR) posted 1Q13 revenue of IDR66.8b, down 33% YoY and 4% QoQ, while reported net profit tumbled 36% YoY to IDR8.3b, meeting 29% and 25% of our full-year revenue and net profit estimates, respectively. While GPR has maintained its new planting target of 300-400ha for this year, it has made a very slow start, planting just 5ha in 1Q13 (versus 166ha in 1Q12) – the lowest new planting since 1Q11. Meanwhile, the outlook also remains muted, given the still-sluggish CPO prices and an impending increase in labour cost (with the upward revision in Indonesia’s minimum wages this year). Until we see fresh progress in its land negotiation and/or acquisition of either new or existing plantations, we opt to keep our HOLD rating and S$0.17 fair value (based on 10x FY13F EPS).

Keppel Corporation: Sells 6.7% of Keppel REIT at S$1.555/unit
Summary: Keppel Corporation (KEP) announced that its wholly owned subsidiary, Keppel Real Estate Investment Pte Ltd, has entered into a sale and purchase agreement with Goldman Sachs (the placement agent) for the sale of 180m units of Keppel REIT (6.7% of total issued units of KREIT) for S$1.555/unit. The aggregate cash consideration of S$279.9m took into account KREIT’s last transacted price of S$1.605/unit as at 20 May 2013 and the 30-day VWAP of S$1.5129. This is at a premium to the book value and NTA/share of S$1.31 and S$1.28, respectively, as at 31 Mar 2013. Upon completion of the sale (expected 27 May), KEP’s interest in KREIT remains substantial (from 58.2% to 51.5%). Recall that KEP earlier rewarded shareholders with dividend in specie of KREIT units; announced on 24 Jan 2013 when KREIT’s share price was S$1.37. Maintain BUYon KEP with S$12.68 fair value estimate.

ComfortDelGro – Addition to Australian operations
ComfortDelGro announced yesterday that it will acquire a privately-held bus company, Driver Group Pty Ltd, for A$22m. This acquisition will add five long-term, metropolitan bus routes in the Eastern suburbs of Melbourne to ComfortDelgro’s Australian operations in Victoria, and increase its fleet to 420 buses from 378. Assuming regulatory approval, this deal will be completed in Jul 2013. While the deal is relatively smaller compared to its previous acquisitions in Australia and will not have a material impact on its earnings in FY13, it demonstrates management’s intent to actively grow its overseas operations and we view this positively. However, valuations for ComfortDelgro remain expensive in our view and we maintain HOLD on the counter with an unchanged fair value of S$1.95. 

From UOB KH:
Tiger Airways- Recovery in Singapore but associates
could still be a drag on earnings. (TGR
SP/SELL/S$0.66/Target: S$0.61)
Maintain SELL. We lower our target price to S$0.61 (previously
S$0.63) as book value was lower than expected. While there is
a recovery in Singapore, we believe its regional cubs still face a
difficult operating environment and as such could still dilute
earnings. We continue to value Tiger Airways at 1.4x FY14F P/B
(excluding perps proceeds and no dilution).

SGX (SGX SP, S68) -
Technical SELL with +6.5% potential return
Last price: S$7.70
Resistance: S$7.85
Support: S$7.20
SELL with a target price of S$7.20 with tight stops placed
above S$7.85. The stock has a follow-through sell after it
formed a bearish engulfing pattern on 16 May 13 and a break
below its mid Bollinger band could see more selling pressure.
Its 21-day Stochastics indicator has formed a bearish
crossover and its RSI has also turned down below a reading
of 60. Watch to see if the stock could continue to be
supported near its rising trendline.

Hutchison Port Holdings Trust (HPHT SP, NS8U) -
Technical BUY with +12.6% potential return
Last price: US$0.835
Resistance: US$0.94
Support: US$0.80
BUY with a target price of US$0.94 with tight stops placed
below US$0.80. The stock is trading above its 200-day
moving average and has been supported near its lower
Bollinger band and a break above its upper Bollinger band is
likely to see further upside. Its Stochastics indicator has
formed a bullish crossover and its RSI indicator has turned up
above a reading of 40. Watch to see if its positive directional
indicator (DI) could continue to trend above its negative DI.
Our institutional research has a fundamental BUY with a
target price of US$0.96.

Logistics Holdings (LHO SP, 5CP) -
Technical BUY with +27.2% potential return
Last price: S$0.22
Resistance: S$0.28
Support: S$0.187
BUY with a target price of S$0.28 with tight stops placed
below S$0.190. On its hourly chart, the stock appears to be
reversing its prior downtrend as prices are trending above its
20- and 50-day period rising moving average. Its Stochastics
indicator has formed a bullish crossover and its RSI indicator
has turned up above a reading of 40. Watch to see if its
MACD indicator could form a bullish crossover.

From Maybank KE:
SIA Engineering: Worth More Than The SOTP Now ; Up to BUY, TP $6.16
SIE SP | Mkt Cap USD4.4b | ADTV USD1.5m
We  upgrade  SIA Engineering to BUY (from Hold) as we believe that the
company is a beneficiary of SIA’s constant re-jig of business models.
Collectively,  SIA,  SilkAir  and  Scoot have 143 aircraft on order as
compared  to  their  current  combined  fleet  of 127 aircraft, which is a
reflection of the future growth in MRO work for SIAEC.
We  believe that there is latent value in the JVs held by SIAEC, which
could  be  unlocked with a separate listing. In particular, we are bullish
on  the  outlook  for  one  of  its  JVs  with  Rolls  Royce, SAESL, which
specializes in the repair and overhaul of Trent engines.
Upgrade to Buy, TP of SGD6.16 based on SOTP.  

From DBS:
Global Logistic Properties is scheduled to release its 4Q13
results on Thursday, 23 May. We estimate the group to
achieve core net profit (before revaluation and divestment
gains) of US$70-75m for 4QFYMar13, lower than a year
ago and reflecting the impact of asset divestment into its
J-REIT. Post divestment, GLP’s balance sheet will be lowly
leveraged, putting it in a good position to reinvest for
future growth. Outlook remains positive in China.
Meanwhile in Japan, rents are inching up, with prospects
of higher capital values. Maintain BUY with higher target
price of S$3.31 (Prev S$ 2.93) as we roll over valuation to
FY14.

Ying Li’s 1Q13 revenue recognition was slow as expected,
but margins were above expectations. Four blocks of Int’l
Plaza have been structurally completed and are expected
to be delivered in 2013/2014. Phase V of Int’l Plaza
(office) will launch pre-sales in June. Maintain BUY with
S$0.55TP.

 
 

Local Brokerages Stock Call 20 May 2013

From OCBC:
Tiger Airways: Roaring success in FY14?
Tiger Airways (TGR) reported a decent set of 4Q13 results to close out the year with a second consecutive quarter of core operating profit. This helped overturn 1H13 losses and TGR recorded a FY13 overall core operating profit of S$7.3m (FY12: -S$83.4m) and its net loss narrowed to S$45.4m from S$104.3m a year ago. In the coming quarters, we expect TGR SG to continue exhibiting strong growth prospects and carry the group forward. Passenger demand has remained healthy for the group and the planned capacity increases for FY14 will allow it to capitalise on this demand. Despite the risk of a drag from its associates, we remain hopeful for a positive core net profit performance for FY14. Maintain BUYrating on TGR with an unchanged fair value estimate of S$0.79. 

CWT Ltd: Growing the trading wing
CWT Ltd’s 1Q13 revenue jumped 39% YoY to S$1.5b, while net profit was flat at S$27m. 1Q results were in-line with ours and the street’s expectations. The surge in 1Q revenue was mainly driven by its newly established trading business (Commodity SCM) which resulted in higher volume, and the inception of a new product line. At the same time, the group incurred higher administrative expenses relating to the costs of establishing new operations. The group’s logistics operations were largely business-as-usual. Looking ahead, we expect operating leverage to kick in for the Commodity SCM business and the group to expand its logistics capacity with the developments of three large warehouses in Singapore. Maintain BUY with unchanged FV of S$2.08. 

From UOB KH:
Cordlife Group- Pushed To A Record High On Positive
Newsflow (CLGL SP/BUY/S$0.915/Target: S$0.87)
Maintain HOLD; raised target price to S$0.87. We raised our
earnings estimates by 30% to reflect the impact of the latest
acquisitions and updated our outlooks on the cord blood and
tissue banking businesses. 

Oil services - Bottom-up strategy for outperformance.
We continue to advocate a bottom-up strategy that favours
companies in an aggressive business expansion phase leading
to EPS improvement. These companies focus on
regional/global expansion to capitalise on rising oil & gas
spending or are expanding their footprints to increase market
shares. They are actively pursuing business growth for greater
earnings, instead of waiting for a global recovery in offshore
support vessel (OSV) charter rates. Corporate growth
strategies in this cycle (2009 onwards) differ from those in the
last cycle (2003-08), which was driven by OSV charter-rate
increases. Our top picks include Kreuz, Nam Cheong and
Swiber. 

Kreuz Holdings (KRZ SP, 5RK) –
New capacity to bridge 2014 growth gap
Last price: S$0.74
Target Price: S$0.68
Kreuz reported 1Q13 numbers, which were in line with our
expectation. Margins continued to improve, while the group also
reported its seventh consecutive quarter of positive operating
cash flow. Kreuz’s orderbook currently stands at US$200m,
which will be recognised over 12-18 months. Even just based on
this, we estimate that the group will be able to achieve 70-75%
of our full-year revenue forecast. Management plans to charter
in one additional third-party vessel on a 1+1 year contract,
which will add capacity and allow the group to bid for additional
contracts. Kreuz has an option with a Chinese shipyard for a
second deepwater subsea construction vessel, which will
probably be exercised in light of buoyant subsea activity. We
maintain BUY with an unchanged target price of S$0.68, pegged
to a 2014F PE of 6.5x. We see the potential to raise our target
price now that the share price has exceeded it.
Technically, the stock has been supported near S$0.57 and a
break above S$0.75 may see it test S$0.85.

Nam Cheong (NCL SP, N4E) –
Strong earnings visibility from a record net orderbook
Last price: S$0.275
Target Price: S$0.34
Nam Cheong’s reported 1Q13 profit was in line with our
forecast. A key positive was the sale of five vessels, bringing
net orderbook to a record RM1.3b. This provides strong
earnings visibility for the next three years. According to
management, there have also been more enquiries on built-toorder
vessels, which is a sign of an industry-wide uplift in
activity. Management disclosed more details about the
shipbuilding programme for 2014, which we view as a wellbalanced
mix of different vessel types. We maintain BUY and
target price of S$0.34, based on 9.7x 2014F PE.
Technically, the stock has been supported near S$0.24 and may
continue to rise towards S$0.32.

Swiber Holdings (SWIB SP, AK3) –
Trading at a deep discount to our RNAV
Last price: S$0.695
Target Price: S$0.86
Swiber’s 1Q13 results were above expectations due to higherthan-
expected turnover and associates’ contributions. Gross
margin fell due to a different revenue mix. Swiber has won only
about US$150m worth of contracts ytd. Management said
project tenders are taking longer to conclude because of their
large size but they are eyeing three with an estimated value of
US$300m each. These projects are likely to be awarded in
2013. Swiber’s extensive regional footprints yield economies of
scale. While its high gearing is a still concern, it should start
tapering off from 2014 onwards as Swiber’s capex programme
is at a tail-end. The share price of 58%-owned Kreuz has
appreciated more than 80% ytd and this has enhanced Swiber’s
value. We estimate Swiber now trades at a more than 30%
discount to our estimated RNAV. We maintain BUY and target
price of S$0.86, based on a 2014F PE of 6.2x.
Technically on the weekly chart, the stock has been supported
near S$0.59 and a break above S$0.75 may see it test S$0.90. 

Singapore Airlines- 4QFY13: Market has not factored in key positives.
(SIA SP/BUY/S$10.93/Target: S$13.30)
FY14F PE(x): 22.1
FY15F PE(x): 14.2
The 4.3% yield decline was mainly due to forex impact. Some 79% of the 4.3% decline in the yields was due to lower S$-yields, ie SIA was impacted by the yen and the euro which had declined 7% during the period. About 10-12% of the parent airline's
revenue came from Japan and 22% from Europe. This suggests that competitive pressures were less of an issue. Despite the adverse forex moves in 1Q13, pax yields actually improved mom in March. If the forex impact was excluded, yields would have
improved qoq.
No reason to be pessimistic on results. We are surprised by the market’s reaction to the results. The decline in yields was mainly due to unprecedented currency volatility, especially in the yen. The market should be focusing on the impact of inbound travels to
Japan and that SIA would now have hedged its yen exposure at better rates.
Maintain BUY with a lower target price of S$13.30 (from S$13.50), mainly factoring in a 7.3% change in SIAEC’s target price. At current level, SIA is being valued at 70% ex-SIAEC after adjusting for a 10% discount to fair value. We continue to value SIA on an SOTP basis and value the airline business at 0.9x FY14F book value. 

From DBS:
CSE Global’s 1Q13 net profit of S$12.7m (flat y-o-y) was
in line but new order win of S$95m (up 11% y-o-y) was
below our S$110m estimate. CSE has guided for core
profit to improve in FY13F. The revival of higher margin
offshore projects in North America is expected to drive
growth despite lower revenue. Our revised TP of S$0.97
implies potential returns of 22%. CSE has a resilient
business model supporting a 40% payout ratio (4.9% to
5.5% yield).

Sheng Siong Group expects more earnings upside from
better operating costs and efficiencies. We have raised
earnings by 5.0%/3.5%. The recent price weakness
presents opportunities to accumulate. Upgrade to BUY
with higher TP of S$0.76 (Prev S$ 0.72).
We expect a maiden distribution of 8% annualised payout
(DPU of 3.56 Scts) in FY13 results announcement for
Religare Health Trust (RHT) on 21 May. Share price
appreciation is panning out as expected, and still has
8.3% yield and upside to revised TP. The recent drop in
Indian bond yields and stable INR is positive for RHT.
Maintain BUY, TP raised to S$1.06 (Prev S$ 0.97).

Operating profit of S$12.7m for Tiger Airways was above
estimates but associate losses dragged net earnings. The
upcoming divestment of stake in Tiger Australia stake and
recent round of fund raising bolsters balance sheet to
support growth trajectory. Tiger Singapore/ Mandala
should benefit from expansion of Singapore-Indonesia
bilateral. Maintain BUY with TP adjusted to S$0.79 (Prev
S$ 0.95) as we lower FY14/15F earnings by 38%/ 28% to
factor in a slower ramp up in associates’ profitability as
well as possibility of losses continuing at Tiger Australia,
albeit narrower.

Core earnings for Singapore Airlines were below
expectations due to an operating loss of S$44m in 4Q.
Net profit of S$379m was 13% higher than last year.
Passenger yields are likely to remain fairly tepid with a bias
towards modest improvements. However, jet fuel has
been trending lower and should help a modest recovery
for earnings. A S17cts final dividend was declared;
maintain HOLD, TP S$11.50 (Prev S$ 11.20).

Local Brokerages Stock Call 17 May 2013

From OCBC:
Singapore Airlines – Share gains premature
Singapore Airlines (SIA) reported a weak set of 4Q13 results as passenger yields remained depressed following weak demand for its services. Revenue fell 1.0% YoY to S$3.7b and operating loss widened to S$44.2m. On a full-year basis, revenue inched 1.6% higher but operating profit declined 19.8% to S$229.2m. Only with the gains from disposal of aircraft and parts did it manage to post an increase in PATMI for both the quarter (S$68.3m vs. –S$38.2m) and FY13 (S$378.9m vs. S$335.9m). Management declared a final dividend of 17 S cents, which brought the total dividends declared for FY13 to 23 cents (FY12: 20 cents). With the lacklustre results, continuing challenges ahead, and possible disappointment over the lack of a special dividend that some on the street had anticipated, we expect selling pressure on the counter, especially after it gained ~8% since mid-Apr. Based on a peg of 0.8x P/Book, we downgrade SIA to SELLwith a fair value estimate of S$10.00 (S$10.85 previously). 

KS Energy: Recovery will take time
KS Energy (KSE) reported a 27.6% YoY rise in revenue to S$153.4m and a net profit of S$1.1m in 1Q13, vs a net loss of S$315k in 1Q12. Though the group’s operating profit went into the red again after four previous quarters in the black, we understand that operating profit would have been about S$8.3m had it not been for a one-off foreign exchange loss from the Titan 2 disposal. We estimate core net profit of about S$0.4m in 1Q13. Overall, the group expects business and operating conditions this year to “remain similar” to 2012. We review the valuations of KSE’s closest comparables on the SGX, and note that the average P/Book valuation is about 0.7x. We ascribe a ~20% premium to arrive at a 0.85x P/Book for KSE due to its integrated operations which are larger in scale in comparison to some of its peers. As such, our fair value estimate falls to S$0.50, based on 0.85x FY13/14F NTA. Maintain HOLD. 

From UOB KH:
Silverlake Axis - Key takeaways from management
meeting
Grows its recurrent earnings and ventures into insurance.
Potential huge contract from a top-five Malaysian bank.
Maintain BUY; raise target price to street-high of S$0.94.

Far East Orchard (FEOR SP, O10) -
Technical BUY with +17.1% potential return
Last price: S$2.22
Resistance: S$2.60
Support: S$2.05
BUY with a target price of S$2.60 with tight stops placed
below S$2.12. The stock has closed above its rising 50-day
moving average and above its mid Bollinger band. Its bullish
momentum is likely to continue as its MACD and Stochastics
indicators look poised to form a bullish crossover and its RSI
indicator has rebounded above a reading of 40. Watch to see
if the stock could break above its recent high and its upper
Bollinger band.

DMX Technologies Group Ltd (DMX SP, 5CH) -
Technical BUY with +31.2% potential return
Last price: S$0.240
Resistance: S$0.315
Support: S$0.20
BUY with a target price of S$0.315 with tight stops placed
below S$0.21. The stock is trading above its 200-day simple
moving average and the golden cross formed earlier has yet
to be negated. Its Stochastics indicator has formed a bullish
crossover in the oversold region and its RSI indicator has
turned up above a reading of 40. Watch to see if prices could
break above S$0.27 as its 50-day simple moving average
could hook up instead.

Parkway Life REIT (PREIT SP, C2PU) -
Technical SELL with +7.8% potential return
Last price: S$2.70
Resistance: S$2.82
Support: S$2.49
SELL with a target price of S$2.49 with tight stops placed
above S$2.80. The stock could be moving sideways as prices
have been resisted by its upper Bollinger band and have
closed below its mid Bollinger band. Its MACD has formed a
bearish crossover and has hooked down, and its minus
directional indicator looks poised to cross above its plus
directional indicator. Watch to see if the stock could continue
to be supported by its rising 75-day moving average.
Our institutional research has a fundamental HOLD with a
target price of S$2.70.

From Maybank KE:
Singapore Airlines: Weak End To The Year; Upgrade to Hold, TP $11.70
SIA SP | Mkt Cap USD10.7b | ADTV USD7.3m
We upgrade SIA to Hold (from Sell) as we see limited downside with its
valuations near recession levels. Furthermore, the stock is well supported
by its net cash position of c.SGD3.7/shr.
SIA reported slightly disappointing earnings of SGD68mn in the quarter,
which was flattered by the SGD54.7mn gain on disposal of ppe.
We  expect  weakness  in the passenger yield to continue into the next
quarter  on  seasonal  factors.  However, further downside to cargo yields
should be limited by the ongoing measures to rein in capacity.
We lift our Target Price to SGD11.70, pegged to 1.0X FY14E BVPS. 

From DBS:

Tat Hong has entered into a non-binding heads of
agreement with Intraco and Mr Aung Moe Kyaw to
establish a JV in Singapore to carry out crane rental and
distribution to Myanmar. The shareholding of the
Singapore JV will be 40%/40%/20% for Tat
Hong/Intraco/Mr Aung with expected initial paid up
capital of US$3m. No impact on our call since the
development is very preliminary. We currently have a BUY
recommendation with TP of S$1.80.