MORNING BUZZ 11 March 2015
Market Indicators Mkt. T/O (S$ mil) 6‐Mar
9‐Mar
10‐Mar
1,179.9
Market Colour 1,130.7
1,216.1
Stock Advances 237
164
200
Noble Group (S$0.935; ‐6.5%) led the STI to close down, as investors sold into Stock Declines 248
338
283
weakness in anticipation of the 3rd report by Iceberg Research. With the dollar gathering momentum and weakening market sentiments, commodity counters Major Indices DJ Ind Avg 17,856.8
S & P 500 2,071.3
4,927.4
Nasdaq Comp 24,164.0
Hang Seng STI Index such as Golden Agri (S$0.410), Wilmar (S$3.24) and Olam (S$1.99) fell. As we see 17,995.7 17,662.9
increasing volatility moving forward, we favour stocks with strong fundamentals 2,079.4
2,044.2
4,942.4
4,859.8
that are trading with deep value. We note that it would, however, be harder to 24,123.1 24,897.0
unearth such stocks amongst the blue‐chip names that most people are 3,398.26 (‐0.19%) well‐acquainted with. The markets turned increasingly bearish when the US session took over. Investors sold into any signs of rebound, with the IT, financials and industrial sectors taking the largest hits. The Energy Information Administration cut the forecast of WTI to average US$52.15 in 2015. With heightened prospects of a June rate hike and weaker oil price, we could see pressure on oil & gas counters, especially for more heavily‐geared names such as Ezion (S$1.050), Ezra (S$0.505), Swiber (S$0.162) Source: Bloomberg and Marco Polo (S$0.280). Commodities
Current % Chge from Price Close Gold (SPOT) US$ / OZ Oil (NYMEX CWTI|) US$ / bbl Baltic Dry Index 1,163.93
0.48% 48.7
‐1.91% 568.00
0.00% Stocks to Watch Exchange Rates 
Singapore Shipping Corporation: Acquisition of pure car pure truck carrier 
Neo Group: Record‐Breaking Orders 
Nam Cheong: Clinches US$58m orders for two vessels 
WE Holdings: Acquire Singapore sand supplier for $25 million 
Keppel Corporation: Sells total stake in DPS Bristol for GBP1.08 million cash USD : SGD 1.3887 / MYR : SGD 0.3737 Source: Bloomberg Interest Rates 3‐mth Sibor 0.845%
SGS (10 yr) 2.486%
KGI Fraser Research Team KGI Fraser Securities Pte. Ltd. Please see important disclosures at the end of this publication MORNING BUZZ
KGI Fraser Securities Pte. Ltd. Singapore Shipping Corporation (SSCL SP): Acquisition of pure car pure truck carrier Singapore Shipping Corporation announces its entry into a term loan facility of up to US$77mil with a leading Japanese financial institution. It will be used to finance the acquisition of a Pure Car Truck Carrier vessel. Upon its delivery in March 2015, the vessel will be chartered to a blue chip shipping major. Neo Group (NGL SP): Record‐Breaking Orders Neo Group served 1,189 events around Singapore on the first day of Lunar New Year. The Group also achieved a new high of catering for 31,475 guests on the first day of the Lunar New Year. Euromonitor International’s December 2014 publication has shown that Neo Group captured the biggest market share in the year of 2013, at 10.0% in the events catering market, which is estimated to be worth S$362.6mil by customer value spend. Nam Cheong (NCL SP): Clinches US$58m orders for two vessels NAM Cheong has won orders for two vessels totalling US$58mil, taking its current order book to RM1.7bil (S$635mil) from Marco Polo Marine and repeat customer Topaz Energy and Marine. The contracts are expected to contribute to earnings for 2015 and 2016. WE Holdings (WTE SP): Acquire Singapore sand supplier for $25 million WE Holdings announced it has agreed to acquire a 100% stake in local sand supplier Hua Kai for a consideration of $25mil. In connection with the proposed acquisition, WE Holdings has entered into a non‐binding MOU with NRA Capital for the proposed issue of new convertible non‐redeemable bonds. Under the terms of this MOU, WE may issue a $25 million in principal amount bond offering. The bonds will carry a three‐year maturity and offered in $250,000 blocks and a fixed interest rate of 8% per annum, to be paid half‐yearly. Proceeds from the bond sale will be used to finance the company’s commodity business and investments in Myanmar and the working capital needs of the company. Keppel Corporation (KEP SP): Sells total stake in DPS Bristol for GBP1.08 million cash Keppel Corporation has sold all its 66.71% stake in indirect subsidiary, DPS Bristol, to DPSH One for GBP1.08mil ($2.3mil) cash. Source: The Business Times / Bloomberg / Straits Times 2
MORNING BUZZ
Apendix 1: Corporate Action Dividends
Results Period
Ann Date
24‐Feb‐15 FY14 SGD 0.021300
18‐Mar‐15
20‐Ma r‐15
27‐Ma r‐15 SGD
0.930
2.3
Da i ry Fa rm Int'l Hl dgs 5‐Ma r‐15 FY14 USD 0.165000
18‐Mar‐15
20‐Ma r‐15
13‐Ma y‐15 USD
9.690
1.7
Hongkong La nd Hl dgs 5‐Ma r‐15 FY14 USD 0.130000
18‐Mar‐15
20‐Ma r‐15
13‐Ma y‐15 USD
7.790
1.7
Ja rdi ne Ma thes on Hl dgs 5‐Ma r‐15 FY14 USD 1.070000
18‐Mar‐15
20‐Ma r‐15
13‐Ma y‐15 USD 65.000
1.6
Ja rdi ne Stra tegi c Hl dgs 5‐Ma r‐15 FY14 USD 0.190000
18‐Mar‐15
20‐Ma r‐15
13‐Ma y‐15 USD 35.360
0.5
Ma nda ri n Ori enta l Int'l 6‐Ma r‐15 FY14 USD 0.050000
18‐Mar‐15
20‐Ma r‐15
13‐Ma y‐15 USD
1.665
3.0
M1
19‐Ja n‐15 FY14 SGD 0.119000
17‐Apr‐15
21‐Apr‐15
30‐Apr‐15 SGD
3.850
3.1
6‐Feb‐15 FY14 SGD 0.400000
21‐Apr‐15
23‐Apr‐15
7‐Ma y‐15 SGD 25.030
1.6
Grea t Ea s tern Hl dgs Payable
Yield (%)
Book Close
As i a n Pa y Tel evi s i on Trus t
DPS
Share Price 10‐Mar‐15
Ex‐Date
Company
6‐Feb‐15 FY14 SGD 0.050000
21‐Apr‐15
23‐Apr‐15
7‐Ma y‐15 SGD 25.030
0.2
Keppel Corp 23‐Ja n‐15 FY14 SGD 0.360000
22‐Apr‐15
24‐Apr‐15
6‐Ma y‐15 SGD
8.730
4.1
Keppel Tel ecoms & Tpt
20‐Ja n‐15 FY14 SGD 0.035000
22‐Apr‐15
24‐Apr‐15
5‐Ma y‐15 SGD
1.775
2.0
Keppel Tel ecoms & Tpt ‐ Speci a l
20‐Ja n‐15 FY14 SGD 0.115000
22‐Apr‐15
24‐Apr‐15
5‐Ma y‐15 SGD
1.775
6.5
Sembcorp Indus tri es 17‐Feb‐15 FY14 SGD 0.110000
23‐Apr‐15
27‐Apr‐15
18‐Ma y‐15 SGD
4.230
2.6
Ex‐Date
Book Close
Grea t Ea s tern Hl dgs ‐ Speci a l
Rights & Bonus Issues
Company
Rights Issue
Chi na Fi s hery Group
4 Rts Sha res @ S$0.173 ea ch Rts s ha re for every 5 exi s ti ng s ha res hel d
31‐Mar‐15
La s s eters Interna ti ona l Hl dgs
1 Ri ghts Sha re @ S$0.06 ea ch Ri ghts Sha re for every 1 exi s ti ng Sha res hel d
23‐Feb‐15
Rights Trading Period
From
To
2‐Apr‐15
8‐Apr‐15
16‐Apr‐15
25‐Feb‐15
2‐Mar‐15
10‐Mar‐15
Source: SGX Annoucement
Buyout
Company
Offer Price
Remarks
Closing Date
Offeror
euNetworks Group SGD 1.16
Ca s h
5.30 p.m. on 13 Ma r 2015
EUN Hol di ngs , LLP
Keppel Land *
SGD 4.38
Ca s h
5.30 p.m. on 12 Ma r 2015
Keppel Corpora ti on
LCD Gl oba l Inves tments Ltd
SGD 0.33
Ca s h
5.30 p.m. on 12 Ma r 2015
AF Gl oba l Pte. Ltd.
Popul a r Hl dgs
SGD 0.32
Ca s h
5.30 p.m. on 18 Ma r 2015
Gra nd Apex Hol di ngs Pte. Ltd.
Xyec Hol di ngs Co., Ltd
SGD 0.30
Ca s h
5.30 p.m. on 20 Ma r 2015
Ma mezou Hol di ngs Co., Ltd.
Source: SGX Annoucement
Keppel Land: A Base Offer Price of SGD 4.38 in cash for each Offer Share. A higher Offer Price of SGD 4.60 in cash, if KCL is able to reach the
Compulsory Acquisition Threshold.
KGI Fraser Securities Pte. Ltd. MORNING BUZZ
Apendix 2: Financial Calendar Monday
Tuesday
Wednesday
9‐Mar
Thursday
10‐Mar
11‐Mar
Friday
12‐Mar
13‐Mar
*Q3: Novo Grp
Q3: Del Monte Pacific
*Q4: Sound Global (Released on Sun, 15‐
Mar)
16‐Mar
17‐Mar
18‐Mar
SG: Prices of Private Residential Units Sold by Developers
19‐Mar
23‐Mar
24‐Mar
25‐Mar
20‐Mar
*Q4: Lung Kee Bermuda
*Q4: TPV Technology
26‐Mar
27‐Mar
SG (Feb 2015): Index of Industrial Production SG (Feb 2015): CPI
30‐Mar
Q2: Second Chance Properties
1‐Apr‐15
31‐Mar
2‐Apr
3‐Apr
Q4: China Sky Chemical
Good Friday
6‐Apr
7‐Apr
8‐Apr
*Q2: EMAS Offshore
* Tentative
Source: Company; Bloomberg
KGI Fraser Securities Pte. Ltd. 9‐Apr
10‐Apr
MORNING BUZZ
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