29 June 2017

S$10 TRADING FEE at UOB KAY HIAN!


Details as above.

Interested friends, please drop me a message to open this trading account.

Be sure to catch this offer before it closes.

28 June 2017

NetLink NBN Trust IPO book building exercise

Dear clients,

For those interested to participate in this exercise, please email the required information stated below:



1.  TR code:  

2.  Client code:  
3.  Client name:  
4.  Indicative demand  [ units ] :  
5.   Offering price:                          S$0.80 to S$0.93 per unit

Please note:

1)        Book building exercise is scheduled to close on the 7 July 2017 (Friday), at 12 pm.

2)        To avoid duplicate order, please email your order once only.

3)        IOI must be reflective of the clients' true demand. No withdrawals or amendments to the IOIs will be permitted after the book is closed.

4)        1% brokerage plus GST is chargeable for allocable demand.

5)        Allocation result will be communicated via email after the prospectus is registered with MAS.






ISSUER : NetLink NBN Trust (“NLT”)
 
TRUSTEE-MANAGER: NetLink NBN Management Pte. Ltd.
 
SINGTEL STAKE POST IPO:  24.99% before exercise of over-allotment option
 
LISTING : Mainboard of SGX-ST
 
LISTING CURRENCY: SGD
 
KEY INVESTMENT HIGHLIGHTS:
More detailed information on NLT business description can be found in the preliminary prospectus lodged with MAS dated 27 June 2017
 


·         Critical infrastructure enabling Singapore’s Next Gen NBN
·         Resilient business model with transparent, predictable and regulated revenue stream
·         Sole nationwide provider of residential fibre network in Singapore, an attractive market with high demand for fibre broadband services
·         Well positioned to benefit from growth in the non-residential segment as the independent nationwide network provider
·         Well positioned to capitalise on growth in connected services including Singapore’s Smart Nation initiatives
·         Extensive nationwide network affording natural barrier to entry
·         Highly scalable operations and credit strength support unitholder returns
·         Experienced management team with proven track record
 
SYNDICATE:
·         Joint Global Coordinators and Issue Managers: DBS, Morgan Stanley and UBS
·         Joint Bookrunners and Underwriters: DBS, Morgan Stanley, UBS, BAML, Citi, HSBC, OCBC and UOB
 
OFFERING PRICE RANGE: S$0.80 – S$0.93 per Unit
 
BASE OFFERING SIZE OF 2,898,000,001 units (appx $2,318.4m to $2,695.1m):


·         Public offer of up to [S$250m]
·         Over-allotment option (OA) of up to approx. S$100m: approx. 107.5m units to 125m units
 
TOTAL UNITS OUTSTANDING, POST OFFERING (ASSUME FULL OA OPTION EXERCISED): 3,971.5m units to 3,989m units
 
FORECAST DISTRIBUTION YIELD
·         FP2018E: 4.73% to 5.50% (annualized);
·         FY2019E: 4.99% to 5.80%
All distributions are exempt from Singapore tax for all investors
 
MARKET CAPITALISATION (BASED ON OFFERING PRICE RANGE): S$3,091.2m – S$3,593.5m
 
LOCK-UP: 6 months (from Listing Date) lock-up for the Trustee-Manager, Singtel and HoldCo
 
USE OF PROCEEDS:


·         Settlement of the cash component of the aggregate consideration payable to Singtel for the acquisition of 100% units of NetLink Trust (NLT) by the Trust;
·         Repayment of the principal amount of S$1,100,000,000 due and owing under the facility agreement with Singtel;
·         Funding the consideration for the purchase by the Trust Group of approximately 27,000 lead-in ducts from Singtel;
·         Funding the consideration for (a) the purchase by the Trust of the shares of NLT Trustee and (b) the purchase by Unitholders of beneficial interests in the Trustee-Manager;
·         Payment of the equity issue expenses and other costs
·         If the over-allotment option is exercised in full, the additional proceeds may be used for capital expenditure and general corporate purposes
 
INDICATIVE TIMETABLE:


·         Books open: 27 June, 2017 upon MAS lodgment
·         Books close: 12pm, 07 July, 2017 or subject to notification by the Bookrunners
·         Pricing & allocation: 10 July, 2017
·         MAS registration: 10 July, 2017
·         Singapore Public Offer: 10 – 17 July, 2017
·         Listing: 19 July, 2017 at [3PM]
 
SELLING RESTRICTIONS: Regulation S, Cat 1.
 
END PLACEE BROKERAGE: 1.0% & applicable GST payable by all investors in the Placement Tranche
 
MULTIPLE APPLICATIONS: Multiple applications are allowed between the Placement and Public Offer Tranches

Preliminary Prospectus

https://eservices.mas.gov.sg/opera/Public/SD/ViewOfferDoc.aspx?shrID=28909a732b1d42649c306764a5b3325b


26 June 2017

Monthly Dividend US counters

Sharing some information for your reference, these are the list of US counters that has monthly dividends. However please note that there is a dividend tax of 30% regardless citizenship. And these dividend yield as tabulated are before dividend tax.

Two of the common concerns with dividend counters:

1. Dividend to be paid consistently? The company is not obligated to issue dividends, though they will promise to do so.
2. while dividends can be paid consistently if the share price were to fall, it is almost like taking money out from the capital itself. Thus 0 net gain overall.

Please note this is not a recommendation, rather a suggestion and info sharing for all.

Happy holidays




23 June 2017

GLP today

with regards to GLP this morning.



20 June 2017

Stocks to watch

Hi all,


as mentioned, my take is that noble is a share for trading only. yesterday's rally is due to updates on its secure lines, and for a company to turn around, it takes time and other factors to be in line for the desired outcome to be successful.

currently, i am looking at :

Lifebrandz
Parkson
Sembcorp marine
mermaid Maritime


For US stocks, dividend counters such as AGNC had a very good run from 20.50 to the current high of 22.10+. The most attractive part is its monthly dividends, and at the price 22.00 and below, the dividend yield is about 10%. Yet, pls note that there is a 30% dividend tax for US counters. Thus that comes up to about 7% pa, which is paid monthly. Still a good bargain IMO.

lastly, I am available daily till 12am midnight. Feel free to text me your trade orders, and call me if i do not respond in time.







MARKET OVERVIEW
- Local shares could push higher after the Dow, S&P 500 and DAX rallied to record highs as large tech stocks reversed a spate of weakness.
- Play in tech manufacturers could return; proxies include Venture (Buy, TP: $13.35), AEM, UMS and Micro-Mechanics.
- Technically, the STI held its ground above the 20 and 50-dmas and appears to be forming a pennant pattern. A breakout of the topside resistance at 3,268 could signal the resumption of its uptrend. Immediate support lies at 3,228.

POSITIVE NEWS
*Noble Group
- Updated that the senior secured revolving credit facility at Noble Americas Corp will be extended by 120 days from 20 Jun 2017.
- Continues to be in talks with potential investors concerning the sale of an interest in the group or parts of its business.
- Discussions with bankers are continuing in relation to its revolving credit facility due May 2018. Deferred the coupon payment of its US$400m perpetual capital securities due on 26 Jun 2017.
- Expects to complete its strategic review once discussions with banks and potential investors become clearer, with results likely to include an asset realisation programme and further reduction in overhead expenses.

*SIA Engineering
- 49:51 JV with Pratt & Whitney, Eagle Services Asia, has been designated as an MRO facility in Singapore for one of two engines that power the Airbus A320neo aircraft.
- ESA will invest US$85m to equip the facility and services are expected to commence in 2019 to tap on growth opportunities arising from large orders of A320neos in the region.
- Trading at 24.1x FY3/18 consensus P/E with indicative dividend yield of 3.1%.

*Manulife US REIT
- Proposed private placement of 73.6m new units (11.7% of unit base) to institutional and other investors at US$0.817-0.842/unit.
- Bulk of the gross proceeds of up to US$80.5m (including 24.9m upsize option) is intended to part fund the US$115m acquisition of an 11-storey prime office building in New Jersey, US.
- The property will increase its total NLA by 25.9% to 2.25m sf and is underpinned by a long WALE of 9.2 years with built-in rental escalation and high occupancy of 98.9%.
- Post-deal, pro forma FY16 DPU will rise 2.3% to US$0.0363.

*Dyna-Mac
- Clinched two contracts from new customers worth a total provisional sum of $30m.
- First was awarded by Schlumberger for fabrication of a MEG reclamation unit, expected to be completed by 3Q18.
- Second is fabrication of a skid package for Papua New Guinea, expected to be completed by 2Q18.
- Group is loss-making and trades at 0.95x P/B.

*Sarine Tech
- Launched Advisor 7.0, the latest version of its industry-leading rough planning software tool.
- Updated software includes many new features that further revolutionise rough planning, helping diamond manufacturers to further streamline the planning process and optimise the polished yield.
- Trading at 24.3x trailing P/E and 5.1x P/B.

*Ley Choon
- Bagged five new contracts worth $51.4m for underground utility infrastructure and construction works.
- The contracts lift order book to $172.3m.

*Wong Fong Industries
- Collaborating with two European principals Bucher Industries and Europress to supply a range of waste management products and solutions in Singapore and Myanmar.
- Under the agreement, it will be the exclusive distributor for Bucher's sweeper vehicles for two years till May '19.
- The group was also appointed to develop and market waste compactors for Europress, with the first shipment to be delivered for field testing in Jul '17.

NEUTRAL NEWS
*China Flex Packaging
- Voluntary unconditional management buyout at $1.25/share or 0.53x P/B.
- Offeror and concert parties currently own 58.4% of the loss-making plastic film manufacturer.

*Nobel Design
- Extended the offer period of its mandatory unconditional offer at $0.51/share to 20 Jun.
- As at 19 Jun, offeror Gland Slam RF18 Investments has garnered 82.51% control.

*Eurosports Global
- 51:49 JV with S Agata to distribute automobiles, parts and related accessories in Indonesia.
- S Agata is owned by a third party with business interest in the property and services sector in Indonesia.
- The group is currently loss-making and trades at 5.2x P/B.

*TIH
- Updated that discussions on the potential share sale and change of control are still on-going.
- Trading at 13.5x trailing P/E and 1.03x P/B.

*Vallianz
- Issuing 156.3m new shares at $0.02 apiece, for settlement of $3.1m in trade payables.
- This will result in NAV/share falling to US4.07¢ from US4.17¢
- Implied P/B valuation of 0.3x.

Singapore Stocks to Watch

* Singapore Premier Lee to address family feud in July 3 speech
*
Harmony Gowell (CFLX SP): Makes S$1.25/Shr cash offer for China flexible
*
Ley Choon (LEY SP): Award of contracts worth about s$51.4m
*
Manulife US REIT (MUST SP): Makes $115m purchase in New Jersey
*
Noble (NOBL SP): One of Singapore’s wildest stocks outdoes itself: Chart
*
Vallianz (VALZ SP): Reports subscription of 156.3m new shares

19 June 2017

Stocks to watch

MARKET OVERVIEW
- Investors may be in cautious mood following the mixed close on Wall Street on weaker-than-expected economic data coming against a hawkish Fed policy plan.
- Key events that could move markets this week include the annual MSCI review, which will decide whether to include China A-shares in its emerging market index, and the formal Brexit negotiations, which start today.
- Technically, the STI looks poised to re-test its 3,228 support line, with next level at 3,190, while upside resistance capped at 3,275.

POSITIVE NEWS
*GLP
- China Vanke is reportedly in talks to join Chinese consortium, led by Hopu Investment and Hillhouse Capital, to bid for GLP.
- Shortlisted bidders, including Blackstone and Warburg Pincus, will have until end Jun to submit their final proposals.
- Currently trading at P/B of 1.15x, well below that of US peer Prologis at 2.1x.

*Noble
- Reportedly won a 4-month reprieve after key lenders agreed to extend a US$2b credit facility until mid-Oct for it to sell its assets or find a white knight.
- Group remains under severe pressure after enduring several turbulent years marked by massive losses, credit rating downgrades and allegations of improper accounting.
- Trading at distressed valuation of 0.08x P/B but worth noting that 74% of its equity base is tied to net fair value gains from commodity derivatives contracts.

*Sarine Tech
- Secured entry into the Thai market after Aurora Group adopted Sarine's light performance technologies.
- Provides a testament of consumer demand for tech-based information on diamonds.
- Trading at 22.6x trailing P/E and 4.9x P/B.

*Darco Water
- Acquired a 12%-stake in Wuhan Kaidi Water Services for $1.9m or 8.6x FY16 P/E.
- Funded via 3.8m new shares at $0.50 apiece.
- Wuhan Kaidi is a China water treatment and management specialist and has 22 ongoing projects worth Rmb487.5m across 14 provinces.
- The group intends to use Wuhan Kaidi's permits and licenses to bid for projects in China.

*Tung Lok Restaurants
- Prominent investor and substantial shareholder Sam Goi acquired 25,000 shares in the open market at $0.121 each on 15 Jun, lifting his stake to 18.62% from 18.611%.
- Trading at hefty trailing P/E of 86.2x but market cap of $36.2m is supported by net cash position of $11.7m.

NEGATIVE NEWS
*F J Benjamin
- Exclusive distribution agreement in Singapore for French leather goods, Goyard, has expired.
- Facing retail headwinds mainly from e-commerce.
- Loss-making and trading at 0.56x P/B.

NEUTRAL NEWS
*Hi-P Int'l
- Entered 20:80 JV with Sino Coffee Machine Mfg to undertake the production of coffee machines, packaging and products related to the business.
- The group's initial investment of Rmb22.8m in the JVCo will include a Rmb19.8m shareholder loan.
- Trading at 10.2x trailing P/E and 1.3x P/B.




13 June 2017

Stocks to watch

currently looking at:
  • China sunsine (upcoming good results)
  • Lifebrandz (possible RTO?)
  • Sembcorp Marine
  • ShengSiong (has been quite stable after XD)


my 2 cents.


The U.S. Treasury Department unveiled a sweeping plan on Monday to upend the country's financial regulatory framework, which, if successful, would grant many items on Wall Street's wishlist.

The nearly 150-page report that suggested more than 100 changes, most of which would be made through regulators rather than Congress. Republican President Donald Trump has gradually been nominating heads of financial agencies like the Office of the Comptroller of the Currency and the Securities and Exchange Commission to carry out his agenda.

The changes suggested include easing up on restrictions big banks now face in their trading operations, lightening the annual stress tests they must undergo, and reducing the powers of the Consumer Financial Protection Bureau (CFPB), which has been aggressively pursuing bad behavior by financial institutions.

The industry has long sought such changes, which would benefit banks like:

  • JPMorgan Chase & Co (N:JPM),
  • Bank of America Corp (N:BAC), 
  • Citigroup Inc (N:C), 
  • Wells Fargo & Co (N:WFC), 
  • Goldman Sachs Group Inc (N:GS) and 
  • Morgan Stanley (N:MS).

The plan would also expand the authority of the Financial Stability Oversight Council, which is chaired by Treasury Secretary Steven Mnuchin. It would also change the way global capital standards are implemented at home to give U.S. banks a leg up against foreign rivals. Smaller banks also would get some relief. Lenders with $50 billion or less in assets would have to jump through fewer regulatory hoops than rivals with multi-trillion-dollar balance sheets.

Trade groups for large and small banks applauded the administration's proposals on Monday evening, though some said they wished there were more specifics on tricky questions, such as what level regulators should set for banks' assets before subjecting them to stricter regulations.

"This is the first time in a while where there's been an official undertaking where our concerns resonated with the folks in the driver's seat," said Rich Foster, senior counsel for regulatory and legal affairs at the Financial Services Roundtable, a trade group.

However, reform advocates and Democratic lawmakers were quick to criticize the plan as a handout to Wall Street and a dangerous one for U.S. consumers who lost homes and jobs during the 2007-2009 financial crisis.

"The Treasury proposal advances ideas that have been pushed by industry lobbyists since Dodd-Frank was passed," said Lisa Donner, executive director of Americans for Financial Reform. "We need more effective regulation and enforcement, not rollbacks driven by Wall Street and predatory lenders."

Democratic Sen. Sherrod Brown noted that the Treasury Department consulted with industry groups more than consumer groups, by a ratio of 17-to-1 while developing the report.

In a statement, Treasury Secretary Mnuchin said the regulatory overhaul is needed to grow the economy, give consumers more choices and ensure U.S. taxpayers would not have to bail out big banks again. While the Trump administration has said it wants to protect consumers, existing rules limit their access to loans and investment products they want.

If the Trump administration succeeds in making changes through regulatory agencies, it can avoid a lengthy and perhaps futile battle among lawmakers.

Although the White House and Congress are led by Republicans, Democrats in the Senate can block legislation and are unlikely to support any overhaul that eases rules on big banks. Many changes proposed by the Treasury Department would undo rules put in place by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, a landmark set of post-crisis laws signed by Obama, who is Trump's predecessor.

Dodd-Frank required banks to hold more capital and liquidity, implemented annual stress tests and put restrictions around the types of trading and investments they could make. It also set up the CFPB and put other consumer protections in place.



News for today 13/6/2017:
- Oil rises on signs of US inventory declines, lower Saudi exports
http://www.businesstimes.com.sg/energy-commodities/oil-rises-on-signs-of-us-inventory-declines-lower-saudi-exports-0?xtor=CS3-25

- Fed rate hike likely despite sluggish US data http://www.straitstimes.com/business/economy/fed-rate-hike-likely-despite-sluggish-us-data?xtor=CS3-18

- US stocks drop as tech shares fall again http://www.businesstimes.com.sg/stocks/us-stocks-drop-as-tech-shares-fall-again?xtor=CS3-25

- Tech stock selloff spreads to Asia, Europe as pound swings http://www.straitstimes.com/business/companies-markets/tech-stock-selloff-spreads-to-asia-europe-as-pound-swings?xtor=CS3-18

- Retail sales rise for 2nd month, up 2.6% http://www.straitstimes.com/business/economy/retail-sales-rise-for-2nd-month-up-26?xtor=CS3-18

- Banks take top spots in brand ranking http://www.straitstimes.com/business/companies-markets/banks-take-top-spots-in-brand-ranking?xtor=CS3-18

- PropNex, Dennis Wee Group merge to form largest agency here http://www.straitstimes.com/business/propnex-dennis-wee-group-merge-to-form-largest-agency-here?xtor=CS3-18

- Hotels go all out to woo millennial travellers http://www.straitstimes.com/business/property/hotels-go-all-out-to-woo-millennial-travellers?xtor=CS3-18

- Job prospects diminish across sectors: Survey http://www.straitstimes.com/business/job-prospects-diminish-across-sectors-survey?xtor=CS3-18

Stocks to watch today 13/6/2017:
- Cityneon last close $1, 52wk high/low $1.21/$0.77 - Opening of Marvel's Avengers S.T.A.T.I.O.N. exhibition in Taipei, Taiwan
http://infopub.sgx.com/FileOpen/Taipei_AvengersOpening_9jun17-F.ashx?App=Announcement&FileID=457182

- Hongkong Land last close US$7.76, 52wk high/low US$7.89/US$5.79 - IOI and Hongkong Land team up to develop prime site http://www.straitstimes.com/business/ioi-and-hongkong-land-team-up-to-develop-prime-site?xtor=CS3-18

- IPS Securex last close $0.09, 52wk high/low $0.205/$0.08 - Company wins S$10.4m security maintenance contract http://www.businesstimes.com.sg/companies-markets/ips-securex-wins-s104m-security-maintenance-contract

- Kim Heng last close $0.081, 52wk high/low $0.09/$0.06 - Company picks up 3 Swiber vessels for 'bargain US$9.6m' as it looks to industry turnaround http://www.straitstimes.com/business/companies-markets/kim-heng-picks-up-3-vessels-for-bargain-us96-million-as-it-looks-to?xtor=CS3-18

- Noble last close $0.295, 52wk high/low $2.80/$0.285 - Embattled Noble receives interest for oil business: FT http://www.straitstimes.com/business/companies-markets/embattled-noble-receives-interest-for-oil-business-ft?xtor=CS3-18

- SingPost last close $1.28, 52wk high/low $1.65/$1.23 - Company to arm postmen with smartphones, apps http://www.straitstimes.com/business/companies-markets/singpost-to-arm-postmen-with-smartphones-apps?xtor=CS3-18

- Singapore Medical Group last close $0.665, 52wk high/low $0.70/$0.138 - Company acquires pediatric clinics for $25.3m http://www.straitstimes.com/business/companies-markets/singapore-medical-group-acquires-pediatric-clinics-for-253-million?xtor=CS3-18

Singapore Stocks to Watch

* GIC said to pledge $100m to ex-employee’s hedge fund firm
*
Noble (NOBL SP): Borrowing base facility indicated near 90c in secondary; said to have received approaches for oil businesses, FT reports
*
SGX (SGX SP): Starts net total return futures for Asia emerging markets
*
Singapore Airlines (SIA SP): Plans to boost Paris services to 10 times a week

08 June 2017

Stocks to watch





Stocks to watch:
*Ascott Residence Trust: Acquiring a hotel in New York, its third US hospitality asset, at market value of US$106m ($148.4m). The 224-room DoubleTree by Hilton Hotel New York – Times Square South will enhance ART's pro forma FY16 DPU by 0.8%. NAV/unit has fallen 6.8% to $1.24 following the recent rights issue.

*SGX: Inked MOI with IMDA to create a pathway for fast growing IMDA-accredited companies to leverage capital markets in Singapore more efficiently for expansion. Through this tie-up, both parties aim to lower the access barriers for technology companies into the capital markets, catalyse more high-tech IPOs and increase Singapore’s attractiveness as a venue for capital raising.

*Ascendas REIT: Divested vacant light industrial building, 10 Woodlands Link, for $19.3m. Post-disposal, pro forma FY3/17 DPU is expected to slip marginally by 0.01¢ to 15.733¢, while aggregate leverage will be reduced from 33.8% to 33.7%.

*Centurion: Launched an A$30m asset enhancement for RMIT Village to boost capacity by 35% to 616 beds. Separately, it broke ground on its second student hostel in Australia with 280 beds in Adelaide. The two initiatives will almost double its Australian student accommodation portfolio to 900 beds. MKE last had a Hold with TP of $0.41.

*Tat Hong: 4QFY17 net loss narrowed to $29.2m from $39.8m a year ago, bringing FY17 loss to $38m (FY16: $39.3m). But quarter revenue still fell 13% to $110.2m, undermined by weaker crane rental (-32%) and tower crane (-11%) turnover due to lower utilization rates in Australia and Singapore on completion of projects as well as closure of specialized transport business in Australia from Apr '16 . Gross margin compressed 2ppt to 24.3% owing to downward pressure on rental rates. NAV/share at $0.78.

*Sing Myanmar: FY17 net loss widened to US$7.1m from US$0.3m, weighed by loss from discontinued telecom towers business and absence of disposal gains. Otherwise, underlying loss would have narrowed to $4.3m (FY16: $6.8m), on the back of a 211.8% spike in revenue to US$23.3m, stemming from the commencement of Duty Free luxury and lifestyle retail business at Yangon Int'l Airport. While gross margin expanded to 20.7% (+4.9ppts), higher distribution (+22.3%) and administrative costs (+11.2%) led to an operating loss. Operations at Junction City has commenced since Apr '17. NAV/share at US$0.0954.

*Swing Media: FY17 net profit grew 6.9% to HK$74.3m on better operating margin of 7.6% (+1.1ppts). Revenue rose 2.2% to HK$1.14b as sales of DVD-Rs (+2.4%), trading (+1%) and leasing income (+11.5%) improved. Bottom line was partly dragged by higher finance costs (+2.4%). NAV/share at HK$29.20..

*Mermaid Maritime: Clinched several subsea contracts across SE Asia and Middle East in 1Q17, with contract value totalling US$26m.

*Rex Int'l: 88.9% owned Masirah Oil completed the drilling of an exploratory well in Oman (Karamah#1), which yielded positive results. The next phase will be to plan for possible early production from the specific block.

*Jasper Investments: Will be removed from the SGX Watch-List with effect from 31 Mar 2017. However, the group remains on the watch-list based on the minimum trading price criteria.

*Chasen: Secured two relocation projects for FY18 amounting to Rmb90m, with works scheduled between Jun 2017 and Mar 2018.

*Telechoice: Disclosed that its logistics agreement with StarHub will be expiring on 30 Jun, which could result in a single-digit percentage drop on FY17 earnings.

*Lafe Corp: Granted NHT Management an option to buy its freehold office building at 57 Cantonment Road for $7.03m. The proposed sale of the 292sqm commercial property is expected to result in a disposal loss of US$0.46m.

*BRC Asia: Disclosed that certain substantial shareholders have received an unsolicited approach for a potential offer, but discussions are in preliminary stage.









06 June 2017

Stocks to Watch

*CapitaLand: Undertaking active capital recycling with the concurrent acquisition and divestment of two Shanghai office buildings. It is acquiring newly-completed Guozheng Center (80,701 sqm) in Yangpu District for Rmb2.64b (or Rmb32,713

*M1: According to Bloomberg, Warburg Pincus has dropped out of the bidding race but MyRepublic is reportedly seeking private equity backing to pursue the mobile carrier after failing to win Singapore’s fourth mobile operator license. Other contenders that have submitted first round offers include Shanxi Meijin Energy and China Broadband Capital. Substantial shareholders Axiata Group, Keppel T&T and SPH, which together hold a combined 60% of M1, has appointed Morgan Stanley to review their stakes.

*OCBC: Received proposals from several parties for its 20.47% effective stake in UEL. Bloomberg reported that the group has picked Perennial for final buyout talks, edging out other suitors, including KKR and Singhaiyi. Based on UEL’s current market cap, OCBC stands to reap gains of $69m and $307m for its direct and indirect holding (via 87% owned Great Eastern), respectively. UE's property portfolio include Rochester Mall, UE BizHub City, as well as condominiums, hotels and serviced apartments. The counter trades at 0.89x P/B.


*HG Metal: Subject of an open letter by activist hedge fund
Quarz Capital Management calling on the group to distribute up to $10m of its hefty cash pile of $29m (65% of market cap) back to investors and to explore the possible sale of its 22.6% stake in listed steel mesh manufacturer BRC Asia, worth $35m. This could boost its boost its shareholder value by >40% by 2018.

*Citic Envirotech: Awarded Rmb54m Phase 2 expansion project with
design
capacity of 25,000 m3/day for a wastewater treatment plant in Henan, China. This will lift total capacity to 50,000 m3/day. Construction is expected to be completed within one year in a year. The project comes with a 25-year service concession and minimum 15,000/20,000/25,000 m3/day offtake from year 1/2/3 onwards, guaranteed by the government.

*Silverlake: Insurance processing arm launched a suite of analytic solutions, TrueSight Analytics, for insurers and has won its first customer in Indonesia and is looking to extend the product to its regional customer base of 120 insurers.*Miyoshi: Proposed 45m placement of new shares (10% of share capital) at 6.8¢ apiece. Net proceeds of $3m are intended for new investments (35%) and working capital (65%).

*Magnus Energy: Terminating its joint investment agreement with Yangtze Investment Partners and will receive a repayment of US$1.2m of principal sum and 20% profit guarantee. It intends to use the funds for working capital requirements and its current projects.


30 May 2017

Upcoming IPOs: World Class Global Ltd and HRnetGroup Ltd


UOB Kay Hian is placement agent for two upcoming IPOs, if you're interested, please kindly reply me by tomorrow 31/5/2017 5PM indicating your name, account #, which company and number of shares you're keen to subscribe for:

1. World Class Global Ltd (Part of
Aspial Group):

-
Company is a real estate company that undertakes property development and property investment in major cities in Australia and Malaysia. They are currently undertaking several property development projects, including residential and mixed use developments, and may in future expand our business to include property development in other sectors, including the industrial and hospitality sectors and may acquire new properties in the Specified Region. They may also expand our business to include the acquisition or development of property for investment purposes in the Specified Region, to earn rental or other income.  Notable projects in the pipeline include Australia 108, Melbourne - the tallest building in Melbourne and tallest residence in the Southern hemisphere.
- Offer details

Issue Type n        Initial Public Offering
listing n        Catalist
Offering Size n        136,000,000 shares, comprising:-
n        100,000,000 new shares
n        36,000,000 vendor shares
Offer Structure n        132,020,000 placement shares
n        3,980,000 public offer shares
Overallotment Option n        10,800,000 Shares
Indicative Price n        S$0.25 – S$0.28 per share
RNAV (Analyst Estimate) n        S$464m (Pre listing based on 7% cost of equity)
n        S$491m - S$495m (Posting listing)
  Discount to RNAV  n        53.4% discount at S$0.25
Gross Proceeds n        S$36.7m – S$41.1m (including overallotment)
Share Capital n        805,000,000 shares (Pre-Listing)
n        916,500,000 shares (Including overallotment)
Market capitalisation n        S$229.15m – S$256.62m (including overallotment)
Lodgement 16 May 2017
Book Closes 1 June 2017, 5 pm
Registration 6 June 2017
Listing Date 15 June 2017
End Placee Brokerage: 1.0% & applicable GST payable


- Preliminary offer documents here: http://www.sgx.com/wps/wcm/connect/sgx_en/home/catalodge/20170516+World+Class+Global+Limited

2. HRnetGroup Ltd

- Company is the largest Asia-based recruitment agency in
Asia Pacific (excluding Japan), as compared to other key players within the professional recruitment and flexible staffing industry with presence
in Asia Pacific, according to Frost & Sullivan. As at 31 December 2016, company operates in 10 Asian growth cities, namely, Singapore (where our headquarters are located), Kuala Lumpur, Bangkok,
Hong Kong, Taipei, Guangzhou, Shanghai, Beijing, Tokyo and Seoul.
- Brands include Recruit Express, SearchAsia Consulting, RecruitFirst, HRnet One, and PeopleSearch
- Offer details

OFFERING STRUCTURE
ISSUER: HRnetGroup Limited (“HRnetGroup”)
TRANSACTION TYPE: Initial Public Offering (“IPO”)
LISTING: Singapore Stock Exchange (“SGX”)
OFFER PRICE RANGE: S$0.80 – S$0.90 per share
BASE OFFERING SIZE: ~194mm shares, 19.1% of enlarged share capital (pre-shoe)
OVER-ALLOTMENT: ~11mm shares (100% primary), ~1.1% of enlarged share capital
OFFERING STRUCTURE: 100% primary on base offering and over-allotment
TARGET DEAL SIZE: S$155mm – 174mm / US$112mm – 125mm (pre-shoe)
S$164mm – 184mm / US$118mm – 132mm  (post-shoe)
EST MARKET CAP: S$813mm – 910mm / US$585mm – 655mm (pre-shoe)
S$822mm – 920mm / US$591mm – 662mm (post-shoe)
PRO-FORMA SHARES O/S: 1,011mm – 1,016mm shares (pre-shoe)
OFFERING TRANCHE: - Cornerstone shares: ~104mm shares
- Institutional Shares (excluding Cornerstone): ~84mm shares
- Singapore Retail Shares: ~6mm shares
CORNERSTONE TRANCHE: ~S$89mm / ~US$64mm, ~54% of total offer size
7 Cornerstone investors: Aberdeen Asset Management Asia Limited, Affin Hwang Asset Management Berhad, Credit Suisse AG (on behalf of certain of their private banking clients), en-japan inc., FIL Investment Management (Hong Kong) Limited, Meiji Yasuda Asset Management Company Ltd, TechnoPro Holdings, Inc.
BOARD LOT: 100 shares
DISTRIBUTION: Reg S only
LOCK-UP: - 6 months from Listing Date for HRnetGroup, SIMCO (including certain of its direct and indirect shareholders) and Vanda 1(1)
- Certain of the employees to be issued the GLOW Initial Shares, the Opp 1 and Opp 2 Investment Shares, the Opp 1 Loyalty Shares and the Opp 2 Buy-in Shares are subject to lock-up restrictions in respect of certain of their Shareholdings as detailed in the prospectus. 88GLOW post-IPO shareholding: ~3.5% of enlarged share capital
USE OF PROCEEDS: Business expansion and acquisition
BROKERAGE: Up to 1.0% & applicable GST payable by all investors in the cornerstone and placement tranches


Exchange rate used: 1USD = 1.3905 SGD
* Notes: (1)     Vanda 1 is a Heliconia fund. Heliconia is a wholly-owned subsidiary of Temasek that provides growth capital to Singapore’s leading SMEs, to help them become globally competitive companies.
- Indicative IPO schedule

INDICATIVE IPO SCHEDULE
Expected Pricing: June 7
Public Offer Period: June 9 to June 14
Expected Listing: June 16


- Preliminary prospectus here: https://eservices.mas.gov.sg/opera/Public/SD/ViewOfferDoc.aspx?shrID=306ed2dfaf09478a83d531e560ccc05b

HRnetGroup Limited book building exercise

Hi all,


We are currently collating orders for HRnetGroup Limited IPO (HRnet). This book building exercise is only for HNW / retail clients, not for institutional clients. Please note that we do not have protection for this IPO. 

Clients may or may not receive any allocations for their orders.

The Company preliminary prospectus web-link are attached at the bottom of this email for your information please.

Please reply in the following format:

1.  TR code:  

2.  Client code:  

3.  Client name:  

4.  Indicative demand  [ shares ] :  

5.   Offering price:                          S$0.80 to S$0.90 per share

Please note:

1)        Book building exercise is scheduled to close on the 6 June 2017 (Tues), at 12 pm.

2)        To avoid duplicate order, please email your order once only.

3)        IOI must be reflective of the clients' true demand. No withdrawals or amendments to the IOIs will be permitted after the book is closed.

4)        1% brokerage plus GST is chargeable for allocable demand.

5)        Allocation result will be communicated via email after the prospectus is registered with MAS.


OFFERING SUMMARY
 

OFFERING STRUCTURE
ISSUER: HRnetGroup Limited (“HRnetGroup”)
TRANSACTION TYPE: Initial Public Offering (“IPO”)
LISTING: Singapore Stock Exchange (“SGX”)
OFFER PRICE RANGE: S$0.80 – S$0.90 per share
BASE OFFERING SIZE: ~194mm shares, 19.1% of enlarged share capital (pre-shoe)
OVER-ALLOTMENT: ~11mm shares (100% primary), ~1.1% of enlarged share capital
OFFERING STRUCTURE: 100% primary on base offering and over-allotment
TARGET DEAL SIZE: S$155mm – 174mm / US$112mm – 125mm (pre-shoe)
S$164mm – 184mm / US$118mm – 132mm  (post-shoe)
EST MARKET CAP: S$813mm – 910mm / US$585mm – 655mm (pre-shoe)
S$822mm – 920mm / US$591mm – 662mm (post-shoe)
PRO-FORMA SHARES O/S: 1,011mm – 1,016mm shares (pre-shoe)
OFFERING TRANCHE: - Cornerstone shares: ~104mm shares
- Institutional Shares (excluding Cornerstone): ~84mm shares
- Singapore Retail Shares: ~6mm shares
CORNERSTONE TRANCHE: ~S$89mm / ~US$64mm, ~54% of total offer size
7 Cornerstone investors: Aberdeen Asset Management Asia Limited, Affin Hwang Asset Management Berhad, Credit Suisse AG (on behalf of certain of their private banking clients), en-japan inc., FIL Investment Management (Hong Kong) Limited, Meiji Yasuda Asset Management Company Ltd, TechnoPro Holdings, Inc.
BOARD LOT: 100 shares
DISTRIBUTION: Reg S only
LOCK-UP: - 6 months from Listing Date for HRnetGroup, SIMCO (including certain of its direct and indirect shareholders) and Vanda 1(1)
- Certain of the employees to be issued the GLOW Initial Shares, the Opp 1 and Opp 2 Investment Shares, the Opp 1 Loyalty Shares and the Opp 2 Buy-in Shares are subject to lock-up restrictions in respect of certain of their Shareholdings as detailed in the prospectus. 88GLOW post-IPO shareholding: ~3.5% of enlarged share capital
USE OF PROCEEDS:   Business expansion and acquisition
BROKERAGE: 1.0% & applicable GST payable by all investors in the cornerstone and placement tranches


 
Exchange rate used: 1USD = 1.3905 SGD
* Notes: (1)     Vanda 1 is a Heliconia fund. Heliconia is a wholly-owned subsidiary of Temasek that provides growth capital to Singapore’s leading SMEs, to help them become globally competitive companies.
               
   
   
INDICATIVE IPO SCHEDULE
Expected Pricing: June 7
Public Offer Period: June 9 to June 14
Expected Listing: June 16





Preliminary Prospectus Weblink

https://eservices.mas.gov.sg/opera/Public/SD/ViewOfferDoc.aspx?shrID=306ed2dfaf09478a83d531e560ccc05b

26 May 2017

Stocks to Watch: ShengSiong, Parkson Retail, Sembcorp Marine

Crude oil plunged from a high of 51+ to a low of $48. OPEC confirmed on Thursday that both the cartel and non-OPEC members led by Russia have agreed to extend its output cut agreement for another nine months and expect to reach supply target by the end of 2017. It seems that market is not agreeing with this news, and focusing largely on the demand side instead.

Personally, I have sold my last batch of Sunningdale (small amount) and have taken profits along the way previously.

Personal list:

  1. Sembcorp Marine         possible privatisation, the dropped in oil prices also caused a drag on Sembcorp M prices too
  2. Serrano                         for trading only, no major news or developments within the company.
  3. Noble                       plagued with debts and cash flow issues, good for trading, not for the risk takers
  4. MM2                         acquired Golden Village cinemas, vertical integration. Possible more upside to come in months/years
  5. Parkson Retail           changed CEO, need time for its stores to turnaround, Net asset value 0.200
  6. Banks                         prices still rise after ex-dividends. Personally i feel it may be about time to take some profits now. If it drops, then able buy in again.
  7. Lee Metal                   good for dividends, but need to be patient to get a good price. Though lower the better, below 0.300 is a good price to get in.
  8. Comfort Delgro          facing competitions as Grab and Uber burning cash to capture market share. Yet, good news: GBP seems to be in recovery
  9. Ascott                        Good entry price would be below $1.100. Dividends about 6-7%
  10. ShengSiong               after XD, price stable around 0.970 to 0.980. Though price is high, for investing friends, i think it's relatively ok. Dividends abt 3%



Stocks to watch:
*GLP: Updated that discussions on the non-binding proposals it received during its strategic review are ongoing and due diligence process is still in progress

*Oxley/KSH/Lian Beng: A consortium by Oxley (35%), KSH (35%), Lian Beng (20%) and Apricot Capital (10%) has purchased a former HUDC estate, Rio Casa, in a collective deal for $575m. The 286-unit residential property sits on a site area of 36,811 sqm, with gross plot ratio of 2.8. Inclusive of $208m differential premium payable for lease top-up and redevelopment, the estimated land cost works out to $706 psf ppr.

*Oxley: Proposed to sell its 19.85% interest in MGlory to Sociedade De Investimento E Desenvolvimento Glory for Rmb22m.*Accordia Golf Trust: 4QFY17 DPU fell to 1.48¢ (-24.5%), bringing FY17 payout to 6.04¢ (-8.9%), meeting expectations. Quarterly revenue declined 5.1% to ¥9.91b due to a 0.2% dip in visitorship to its gold courses as well as the absence of a one-off refund recorded in 4QFY16. Consequently, operating loss deepened to ¥2.32b (4QFY16: ¥622m). Course utilisation rate inched up 1ppt to 70.2%, while loan-to-value ratio held steady at 28.9%. NAV/share at $0.91.

*Pan Hong: FY17 net profit jumped 25.3% to Rmb100.9m, while revenue surged 131.1% to Rmb1.4b, buoyed by the handover of property units at Nanchang Sino harbour Kaixuan City Zone 3, Pan Hong Run Yuna Phase 1 and Huzhou Hua Cui Ting Yuan Phase 2. Gross margin jumped 5.6ppt to 18.9% from improved sales mix. NAV/share at Rmb4.33

*Jason Marine: Broke even in FY17 with net profit of $0.3m (FY16: $6m loss). Revenue fell 10.8% to $33.2m, with weakness across all business segments. But gross margin widened 11ppt to 30.1% due to cost and operational efficiency. Bottom line was further boosted by a overall drop in operating expenses. NAV/share at 21.3¢

*Hiap Tong: FY17 net profit more than doubled to $4.8m mainly due to $3.8m in fair value gain on investment properties. Revenue rose 3.7% to $41.6m, mainly on the strength of its leasing business (+3.8%). Gross margin compressed to 19.2% (-5ppts) on higher wages. Bottomline was shored up by lower finance (-33.8%) and tax (-30.2%) expenses. NAV/share at $0.2696.

*BBR: Acquiring Goh & Goh Building at Upper Bukit Timah Road in $101.5m en-bloc deal, following the exercise of a call option. The 4-storey freehold property has a plot ratio of 3 and comprises seven apartments and seven shops, which can be redeveloped into 100 residential units with ground floor retail space, subject to a development charge.

*Rickmers Maritime: Received US$24.7m from the sale of 14 vessels to Navios Partners as part of its US$59m sale, which also saw Navios assume US$34.3m of secured loan obligations.

*ISDN: Entered into strategic cooperation framework with HK-listed Comtec Solar Systems to develop and operate solar power generation station projects, as well as collaborate on power storage and electric bar charging businesses. Group will also offer Comtec right of first refusal for sale of roof distributed photovoltaic power stations that it might develop in the future.

*DISA: No longer proceeding with the 50-into-1 share consolidation, citing the increase in company’s share price over the past few months (ytd return: +117%). However, as shareholder approval has been sought for the consolidation, management will have to seek approval to disregard the exercise.








Singapore Stocks to Watch

* Noble Group (NOBL SP): Muddy Waters asks when “last wheel” may fall
*
Oxley (OHL SP): Leads group buying former housing estate for S$575m
*
Rickmers Maritime (RMT SP): Received $24.7m from sales of 5 vessels

Malaysia Stocks to Watch

* AirAsia (AIRA MK): 1Q net 615.8m
rgt vs 877.8m rgt y/y



25 May 2017

Stocks to watch

Stocks to watch:
*Economy: Singapore final 1Q17 GDP growth was revised to 2.7% from earlier flash estimate of 2.5%. While MTI kept its 2017 growth forecast at 1-3%, it foresees the economy will expand more than 2% this year as exports continue to strengthen. 1Q17 NODX surged 15.2%, on the back of a recovery in electronic shipments. On that front, IE Singapore raised its growth estimate for exports from 4% to 6%.

*Keppel Corp: Won $103m contract to build two LNG carrier vessels for Stolt-Nielsen Gas, with completion in 2Q/3Q19. The deal comes with options for three additional vessels, with 6/12/18 months expiry from the contract date. Latest order brings the total contracts secured this year to just $279m, well off peak of $10b in 2011 and $0.5b in 2016.

*SIA Engineering: Setting up wholly-owned subsidiary in Japan to provide line maintenance services at airports in Japan. It will commence operations at Kansai Int'l Airport and subsequently expand to other Japanese airports. This will brings SIE’s maintenance network to 37 airports across eight markets.

*SATS: Launched a technology innovation centre, TechnIC@SATS, which will roll out technological solutions to boost productivity. The centre will be supported and co-funded by the CIAS and the EDB to the tune of $110m.

*Valuetronics: FY17 net profit jumped 27.9% to HK$154.1m, beating estimates, as it was partially helped by a positive HK$5.1m FX swing. Revenue climbed 16.5% to HK$2.27b, with improvement in industrial & commercial electronics (+14.1%), as well as consumer electronics (+19.7%) segments. Gross margin was relatively stable at 15% (FY16: 15.2%). Cash pile ballooned to HK$752.9m (FY16: HK$689.3m), accounting for 40% of market cap. Maintained final and special DPS of HK$0.20. Trading at 12x FY17 trailing P/E, and 7.1x ex-cash P/E.

*Cityneon: Officially opened its maiden Avengers S.T.A.T.I.O.N travelling exhibition in Beijing, China. After Beijing, the set will move on to other cities within China over the next two years. *Secura: Entered two-year strategic alliance with ComfortDelGro to offer cyber security related consultancy, products and services to the latter’s customers.

*Vallianz: Converting net payables to Swiber of US$36.6m, as well as Rawabi’s shareholder advances of US$102.1m into equity in its own capital, via the 1-for-1 proposed rights cum warrants issue first announced in Sep ’16.

*Sinwa: Won supply agreements of A$8m for the Prelude FLNG Project in Western Australia. Scope of services include the supply of provisions, stores and logistics to vessels involved in the project.

Singapore Stocks to Watch

* Keppel (KEP SP): Secures contract to build LNG carriers worth more than $100m
*
Noble Group (NOBL SP): Co-CEOs see “incredibly difficult environment;” hires Morgan Stanley, Moelis in battle for survival

Malaysia Stocks to Watch

* XL Axiata (AXIATA MK): Raised to buy from neutral at Nomura




Keppel Corporation (KEP SP)        HOLD
Price/Tgt: S$6.59 / S$6.55        Mkt Cap: US$8,623.9m         52-wk avg daily value: US$20.2m         1-Yr Hi/Lo: S$7.23/S$5.13

Order Momentum continues with another S$103m in LNG Carriers
Analyst(s): Foo Zhiwei / Andrew Chow, CFA        Tel: (65) 6590 6626 / 6633

What’s New?
- Keppel secures S$100m in new orders for two LNG carrier vessels. Contract value is S$103m for two LNG carriers (S$51.5m each) for Stolt-Nielsen Gas BV, a subsidiary of Stolt-Nielsen Ltd. Delivery is expected to be in 2Q19 and 3Q19 respectively.
- Option for three more similar units. As part of the order, Keppel Singmarine has also secured options to build another three similar units for Stolt-Nielsen Gas. Timeframes for exercise of the options are 6, 12, and 18 months form the effective date of the contract.

Our Take
- Contract wins still within expectations. Year to data contract wins now stand at S$279m and make up 19% of our full-year assumption of S$1.5b.
- Positive order momentum, but small contract win sizes insufficient to replenish declining orderbook. While the string of continued order wins is encouraging, it is insufficient to arrest the decline of Keppel's net orderbook (S$3.5b as of 1Q17). We look forward to 2H17 where we believe more sizeable contracts are likely to be awarded, and are also more meaningful to Keppel's orderbook (and bottom line). Should 2017, however, prove a repeat of 2016's low contract win of S$0.5b, current estimates for Keppel's O&M business will likely have to be revised down. Hopefully, given the continued stability in oil prices from OPEC's affirmation to extend their supply cut by another 9 months, more large-scale projects will be sanctioned, leading to greater tendering opportunities.

Valuation/ Recommendation
Maintain HOLD, target price of S$6.55. Our target price still remains unchanged on this development. It is based on SOTP which prices the O&M unit at 1.0x P/B, and Property at 0.8x historical P/B. Despite the improving environment, the contracting environment remains challenging and has not seen a flurry of large sized production order awards that Keppel O&M needs to replace its diminishing orderbook. Even if Keppel meets out S$1.5b contract win assumption, profitability will be lower and unlike levels seen in the previous boom cycle. Property remains the core earnings driver, with O&M likely to fluctuate between marginal profitability or breakeven. Continue maintaining HOLD.