Singapore stock market financial news and announcements

Global Voice will deploy IP¦nex a next generation suite of massively scalable, highperformance IP solutions providing Allianz Worldwide Care with the highest performance access to the Internet.

Kian Ann Engineering announces rights issue of 116m new ordinary shares at an issue price of S$ 0.14 per share and the option to elect to utilise the interim bonus dividend comprising an ordinary dividend of S$0.07.

Adroit Innovations announce that the Group has incorporated two wholly owned subsidiaries in Indonesia known as PT. Tyzen Pacific International and PT. Tyzen Pacific Nusantara, with an issued and paid up share capital of USD300,000.00, engaging in investment activities.

SP Chemicals, fourth largest ion-membrane chloralkali producer and the fifth largest aniline producer in the PRC plans to invest approximately
RMB1.1 billion in facilities for the production of styrene monomer, an intermediate raw chemical used in making polystyrene plastics, protective coatings, polyesters and resins.

MMP Reit. Lee Hwa Diamond Gallery and deluxe café by Bakerzin tie-up, a first in Singapore. F irst-in-Singapore shops: Schu from France, Beijaflor from Brazil and Sino London, a new fashion label by Singapore-based Aussino group.

CH Offshore. The Company wishes to clarify that the titles of all the reports are not an accurate interpretation or representation of the comments made by Mr Koh during the interview. US$23 million out of the Company's net profit of US$40.2 million for the Financial Year ended 30 June 2007 had been due to the gain from the disposal of vessels. US$11 million out of the gain of US$23 million had been due to the sale of a new vessel. Mr Koh had said that it would be difficult to predict the gain from the sale of vessels for the Financial Year ending 30 June 2008. It was not meant to be construed as a profit warning for the current financial year.

Hiap Seng wishes to announce that its wholly owned subsidiary, HS Compression & Process Pte. Ltd. ("HSCP") has, on 18 September 2007 issued and allotted 187,500 fully paid ordinary shares in the capital of HSCP to TG Project Consultancy Services Limited at an exercise price of S$1.00 per share. Hiap Seng's shareholdings in HSCP has reduced from 100% to 86.96%.
This is not expected to have any material impact on the consolidated net tangible assets and earning per share of the Company for the financial year ending 31 March 2008.

Creative Introduces Aurvana X-Fi– Noise-Canceling Headphones – Featuring X-Fi Audio Technologies to Improve Audio Playback for the iPhone, iPod and any other Portable Entertainment Device. Suggested retail price of S$499.00.

UNI-ASIA: half year results Revenue up 74% and net profit up 91%. increase in fee income stems from increase in finance arrangement fee and investment returns. More finance arrangment transactions this year aside, the group also disposed of 3 vessels under their principal investments. Launch of Akebono shipping fund boosted topline.

APEX-PAL: Celebrates Sakae Sushi's 19th Anniversary. Global chain to grow flagship brand with new markets in Mongolia, Vietnam and the Middle East

SGX: has invested S$750,000 in a minority stake in a company involved in developing new financial product platforms.No material impact on current FY's results.

SIA: August 2007 operation results out. Achieved 2.0% year-on-year growth in systemwide passenger carriage. P assenger load factor up 1.9 percentage points to 81.6%. The number of passengers carried rose by 5.1% over the same month last year to 1.62 million.

EZRA: Subsidiary, Lewek Shipping Pte Ltd, has awarded a contract to Karmsund Maritime for the design and building of one large 27,000 brake horsepower Multi-Functional Support Vessel at a contractual value of S$162,353,200

KEPPELCORP: Delivers third KFEL B Class jackup rig to Seadrill ahead of time and within budget.

SUNPOWER: Awarded China's Top Brand 2007. Company is a specialist in the design, R&D and manufacture of customized energy saving and environmental protection products

TIMEWATCH: Signed on actor Francis Ng for HK1mill to endorse Balco, one of the top Swiss-imported brands in the PRC. Store debut in SG end year.


OCBC: Aberdeen Asset Management PLC now holds 5.05% of OCBC ordinary shares as of 12 Sept 2007. Given proxy voting rights.

* MIIF - agreed to sell its 100 per cent interest in its wholly owned subsidiary, Macquarie Storage Holdings Limited (MSHL), the holding company of TanQuid GmbH & Co KG (TanQuid) to LODH Macquarie Infrastructure Fund
(LMIF) for €89.0 million (S$184.5 million1) subject to adjustments as announced.

* Serial System Ltd - has entered into 3 shares purchase agreements on 18 September 2007 with the minority shareholders of SMHK, SMTW and TBT respectively (collectively “Vendors”) as part of the corporate shareholding reorganisation of the Group’s semiconductors/ components distribution business.

* Ascott Group - voted the ‘Best Serviced Residence Company’ by readers of Business Traveller UK magazine. The Group is the first company to be chosen the winner for the serviced residence category which was created for the first time by Business Traveller UK magazine.

* Design Studio Furniture Manufacturing Ltd - SGX-ST has on 17 September
2007 granted approval in-principle for the listing and quotation of up to
111,111,111 new ordinary shares in the capital of the Company to be issued upon conversion of the Notes.

Stock market direction

Both malaysia and singapore stock markets have rebounded nicely after the big sell down few weeks ago. And now, I think the market is at a cross road again........

I expect most markets, including malaysia and singapore stock markets to take their cue from the US market after tonight's much anticipated FOMC rate decision meeting. I was told that most people are expecting a 50 basis point cut. And if that happens, we could see another short term boost in global markets.

Singapore Straits Times Index is now hovering around the 61.8% fibonacci retracement level of about 3500 points since the sell down from 3688 intra day high on 16th july to the intra day low of 2962 on 17th august. So if the 50 basis point cut materilized, STI may well try to retest the recent day high of 3561 and after that the next greater resistance at 3669.

Some "danger" signals to watch out for :
1. candlestick - doji formed on 14th sept is a warning signal of potential reversal signal
2. MACD histogram - forming lower highs while STI higher highs warns of potential weakening momentum
3. stochastics - forming lower highs while STI hit higher highs warns of potential weakening momentum

And of course what if the Feds disappoint the market by cutting the rate by 25 basis points only, then market may be disappointed and "lausai" again.

Whatever the case, we will continue to see lots of volatility in the near term.

18sept
Singapore stock market corporate news and announcements :

EZRA Holdings (EZRA SP)
Ezra Holdings has ordered a new multi-functional support vessel for some SGD162.4m. The contract value includes the cost of sophisticated equipment as well as integrated features such as a remotely operated vehicle hangar and foundations for a heave-compensated offshore crane. When delivered in 1Q2010, this latest vessel will join Ezra's two 30,000 brake horsepower large deepwater Rolls-Royce designed multi-functional support vessels which were ordered in May and scheduled for delivery in 2009 and 2010.

CH Offshore (CHOS SP)
CH Offshore, which owns and charters support vessels for oil and gas drilling, announced that net profit for FY08 will be lower compared to the previous year. FY07 earnings were boosted by vessel sales gains of US$23m.

Singapore Airlines (SIA SP)
SIA filled 81.6% of its seats in Aug, up 1.9 ppts y-y, as passenger carriage grew even as capacity shrank. The airline said it enjoyed a 2% y-y growth in system-wide passenger carriage (in revenue passenger kilometres) while capacity (measured in available seat kilometres) fell marginally by 0.3%. The number of passengers carried rose by 5.1% y-y to 1.62m.

Gen Int - Acquisition of new wholly owned subsidiary Glaive Limited, with no impact on NTA or EPS for curret year financial

Saint James Pte Ltd seeks listing on SGX's new sponsor supervised board through a $108 million reverse takeover of JK Technology Group Limited (JK Tech).

FJ Benjamin disposes entire stake in Saint James Pte Ltd

WEPCO disposes its 49.99% stake in Tong Chieh Trading (HK)

Westcomb invested a further sum of S$1 million in Westcomb Securities Pte.
Ltd a wholly owned subsidiary of the company.

NOL - For the four weeks of Period 8, 2007, liner volumes increased 11% over the same period last year reflecting continued strong container demand growth.

Chemoil announced that their 3Q profit after tax may get affected by issues affecting its logistics operations in Singapore as well as volatile conditions in both the petroleum and energy futures markets.


* JK Tech Ltd - St James Holdings Ltd has announced plans to seek a listing on Singapore’s soon-to-belaunched new board through a $108 million reverse takeover of JK Tech. Under a Sale and Purchase Agreement signed between the shareholders of St James and JK Tech, a Sesdaq-listed IT firm, the former will sell to the latter the entire issued and paid-up capital of St James.
The three shareholders of St James are FJD Pte Ltd, a joint-venture between Dennon Entertainment Pte Ltd, a private vehicle controlled by Dennis Foo and his family, and SGX-listed F J Benjamin Holdings Ltd, EK Capital Pte Ltd, a private investment vehicle associated with Jopie Ong and Daniel Ong, and Breadtalk Group Ltd, a Sesdaq-listed company.

* OKP - its wholly-owned subsidiary, Eng Lam Contractors Co (Pte) Ltd, had been awarded the Final Premix Surfacing, Reinstatement and Ancillary Works at Tuas View, Phase 6 ("the Contract") by the Jurong Town Corporation. The amount of the Contract is SGD6,257,000 and the commencement date for the Contact is 8 October 2007. The Contract is expected to be completed on 7 October 2008.

HPL: HPL and Lehmen Brothers in a 50-50 JV company, Laem Ka, formed to develop and construct a luxury hotel in Phuket Thailand.

UNISTEEL: Deregistration of subsidiary incorporated in China, Wuxi Gentech Co Ltd. Not expected to have any material impact on the net tangible assets or earnings per share of the Company for the financial year ending 31 December 2007.

Time Watch. Leading PRC watch Player Signs On Celebrity Actor Francis Ng for HK$1 million ahead of International Debut Store Opening in Singapore.

Sunpower's subsidiary, Jiangsu Sunpower Technology was awarded "2007 China's Top Brand" by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China.

Kep Corp. Keppel FELS delivers third KFELS B Class jackup rig to Seadrill ahead of time.

Ezra's subsidiary. Lewek Shipping Pte Ltd, has awarded a contract to Karmsund Maritime Service AS for the design and building of one large 27,000 brake horsepower Multi-Functional Support Vessel ("MFSV" or
"Vessel") at a contractual value of S$162,353,200. Contract has no impact on NTA or EPS. However, mgmt guides that this move will fuel growth.

A subsidiary of Singapore Exchange Limited ("SGX") has invested S$750,000 in a minority stake in a company involved in developing new financial product platforms. This investment is not expected to have any material impact on SGX Group's financial results for the year ending 30 June 2008.


UniAsia. - 1H07 Rev up 70%. NPAT up 91%.

Malaysia stock Stemlife share price rebounded after The Edge writeup

Stemlife stock which shot up like a rocket from from RM1.00 to RM5.60 in less than a year but recently experienced a sharp correction to below RM4.00. The share price rebounded after a big write up in The Edge last week. Interestingly, Berjaya owns more than 20% in Stemlife, and Berjaya also owns more than 20% in Nexnews (which is the owner of The Edge in Malaysia).......hmmm don't you think if someone is writing about "related companies", he or she should have a caption to remind readers. This will mean better corporate transparency and also to avoid any potential conflict of interests.

IPO - singapore stock Sinostar

Public shares - 5m
Placement shares - 155.4m
Price - $0.38
Closing date: 24 september 2007
Managers - Jointly by SBI E2 Capital and CIMB

The Company is one of the largest producers and suppliers of downstream petrochemical products and are engaged in the fractionation of raw LPG for the production and sale of propylene, polypropylene and LPG.

The profits for Sinostar rose spectacularly in FY06 to RMB97m from RMB15.4m in FY05. However, there is no 1H07 figures in the prospectus.

To estimate the potential worth of Sinostar, let's assume that profit in FY07 grow 30% and FY08 profit grow 20%, so FY08 profit could reach RMB152m or S$30m. Based on the post IPO 640m shares, the EPS will be 4.8 cents.
Based on a PE multiple of 10x-15x, potential fair value could be in the range of $0.48 to $0.72.

IPO - Singapore stock Fuxing

Closing date of application: 20 September 2007
Commencement of trading: 24 September 2007

Established in 1993, Fuxing is one of the few vertically integrated players in the PRC zipper industry with the ability to manufacture the entire zipper product from mould making for the production of zipper sliders to the manufacture of fabric tape for the zipper chains.

They have a diversified customer base of over 900 customers in the PRC, including:

• Renowned brands like Anta, Septwolves, CBA Leisu, Fujian Peak, and Northpole China, who use their zippers in their apparel, shoes, and bags products.
• Trading companies that export their zippers to overseas markets in Europe, Asia, and Australia.
  

Intended IPO price: $0.46
No. of shares available for public offer: 5m
No. of shares available for placement offer: 170m
Total post invitation share capital: 775m

THE EDGE BROKERS' REPORTS : SEP 17-23, 2007

China Sunsine Chemical Holdings (Sept 6: 35.5 cents) TP: 50 cents
OUTPERFORM (initiating coverage). China Sunsine Chemical Holdings is involved in the production of rubber chemicals, essential for rubber production. Capacity of its key product, rubber accelerators, is slated to expand 56% to 50,000 tonnes a year by end-2009, making the company the world's largest rubber accelerator producer. Sales and profits are set to grow 28% and 24% of CAGR for FY2007-2009. Growth should be fuelled by the 56% expansion in rubber accelerator capacity and contributions from new rubber chemical products. The projected three-year EPS CAGR for FY2007-2009 is lower at 13%, owing to share capital dilution post-IPO. The target price of 50 cents, based on 12x CY2008 earnings, is in line with international peers Lanxess and Chemtura. - CIMB-GK Research (Sept 5)

Macquarie MEAG Prime REIT (Sept 6: $1.23) TP: $1.32
MAINTAIN BUY. Revenue growths were tepid at 5.5% y-o-y and 1.1% q-o-q to $23.6 million. Net property income did better sequentially, improving 4%. This was due to lower expenses related to lease renewal commission and depreciation. DPU for 2Q2007 was 1.5 cents. MMP remains one of the few real estate investment trusts (REITs) with a low P/B ratio. This low valuation means it is likely to be more resilient in market uncertainty. Since our last report (April 2007), MMP's share price has corrected about 2%. It is trading at just under 1xP/B and implies that the market has not factored in growth. With a DPU yield of 5% and a capital value upside of 8%, total return of over 13% is possible with little downside risk. Fair value of $1.32. - OCBC Investment Research (Sept 5)

Singapore Food Industries (Sept 6: 84.5 cents) TP: 75 cents
HOLD (initiating coverage). SFI is an integrated food company headquartered in Singapore. The group is aggressively exploring more opportunities in the UK/ Europe geographical region - its core market, accounting for 58% of sales. SFI's share price seems to outperform relative to its financial performance despite being profitable every year since listing and consistently achieving ROE of at least 20%. Based on it historical average, we believe the stock should trade at a fair value of 75 cents. As it is currently trading at a premium of 10.7% and given the mature domestic outlook, coupled with bad tidings on the Australian and Chinese market, we are initiating coverage with a 'hold' recommendation. - SIAS Research (Sept 4)

CMZ Holdings (Sept 6: 26.5 cents) TP: 37 cents
BUY (initiating coverage). The company produces and sells zippers to the mid0ragne to high end of the garment industry. We like CMZ for three primary reasons: (a) no replacement product for zippers; (b) focus on the mid-range to high-end market; and (c) for the last two consecutive years, its Chima brand was named one of China's top 10 zipper brands. It is one of the designated suppliers to international brands such as Calvin Klein. The 12-month price target of 37 cents represents an upside potential of 54%. Our target price is based on a target multiple of 10x FY12/2008 EPS, which we feel is reasonable, in view of its robust earnings growth outlook. Management targets a 20% dividend policy for FY12/2007. - SBI ES-Capital Securities (Sept 3)

Midas Holdings (Sept 6: $1.37) TP: $1.84
MAINTAIN BUY. Midas announced that the proposed joint venture with Northeast Light Alloy Co (Nela) has not received regulatory approval. Thus, we have lowered our FY2008 earnings by 9.5% to $64.7 million. We remain positive on the group, however, as its core business and the Nanjing Puzhen JV should still help drive healthy growth. We have adjusted our target price of $1.84, based on 24x FY2008 earnings. Our target multiple has been lowered from 27x to 24x to reflect the slower earnings growth from the loss of the Nela JV. However, with earnings CAGR still robust at 50% from FY2006 to FY2009, driven by the existing core business and the Nanjing Puzhen JV, PEG at 24x FY2008 earnings remains undemanding at less than 0.5x. - DBS Vickers Securities (Sept 5)

Sinwa (Sept 6: 69.5 cents) TP: 82 cents
MAINTAIN BUY.For 1H2007, Sinwa's revenue rose 12.8% to $59.4 million while earnings jumped 41.5% to $5 million, mainly driven by the buoyant offshore marine activities in Australia and Singapore. Gross and net margins improved 0.5 percentage point and 1.7 percentage points respectively. EPS increased 23.2% from 1.85 cents to 2.28 cents. The issuance of 33 million new shares in February helped increase total equity as well as cash and equivalents. The 1H2007 results are in line with our earlier forecast and we maintain our target price of 82 cents a share. Our projected valuation represents a 29% potential upside. At this level, it will be valued at 16.3x FY2007 and 9.2x FY2008 earnings. - SIAS Research (Sept 5)

Fujian Zhenyun Plastics Ind Co (Sept 6: 63 cents) TP: 92 cents
BUY. FJZY is a leading plastic pipe maker in China. We view FJZY as a key participant in China's infrastructural boom and we like its market positioning in the lucrative gas sector as well as export growth potential. While is PER products may face margin pressure from higher oil prices, the cost increases have so far been absorbed by its customers. Forward PERs of 3.7x in FY2007 and 3.5x in FY2008 are grossly undervalued vis-a-vis two-year net profit CAGR of 22.5%. We have ascribed FJZY a FY2007 PER of 7.8x as compared with its closest peer Sinopipe, which is trading at 5.4x PER and applied a 20% "S-share" discount on the stock. This translates into a target price of 92 cents with a 80% upside return. The stock also offers an attractive 4.8% dividend yield. - Kelive Research (Sept 6)

SembCorp Marine (Sept 6: $4.38) TP: $4.71
OUTPERFORM (initiating coverage). We expect rig order momentum to carry through to 2009E, with SMM winning new rig orders aggregating $8.5 billion in 2007 to 2009E, representing 28 jack-ups or 10 semi-submersible rigs, in view of the cycle continuing for the next two year, given the current market conditions. We also expect gross margins to improve from 8.2% in FY2006 to 10.3% in FY2009E. We value SMM at $4.71, based on a target FY2008 PER of 20x, plus the value of its stake in Cosco Corp (S). With a 2007E dividend yield of over 3% and an earnings CAGR of 21% in FY2006 to FY2009, we believe this is a reasonable representation of the value of the company in relation to its Singapore large-cap peers and other offshore and marine companies. - Credit Suisse (Sept 3)

Time Watch Investments (Sept 6: 27.5 cents) TP: 52.5 cents
MAINTAIN BUY. Revenue increased 19% to 855.9 million renminbi ($173 million) in FY2007 y-o-y, thanks to 11 months' contribution form the original equipment manufacturer segment and robust retail sales performance. Gross margins swelled 5.3 percentage points on improved economies of scale and successful cost-cutting measure. Reported net profit was 73.4 million renminbi, up from a new loss of 48.3 million renminbi in FY2006. Net of goodwill written off in FY20056 and revaluation gain on property in FY2007, net profit will have grown 29% y-o-y. A dividend payout of 0.6 cents is declared, translating into 2.2% yield. We continue to value Time Watch at 15x FY2008F PER, giving a revised target price of 52.5 cents on earnings raised. - Westcomb Securities (Sept 5)