SINGAPORE SHARE MARKET NEWS : Straits Asia Resources
OCBC Investment Research, Oct 8

STILL a 'buy' despite bear-case assumptions: Shares of Straits Asia Resources (SAR) have plunged by 49 per cent over the past two weeks, starkly underperforming the Straits Times Index's (STI) 14 per cent fall.
We spoke to management and gathered that other than the recent cancellation of its restructuring plans, the fundamentals have not changed.

A substantial portion of SAR's shareholding spread comprises US funds, several of which have been trimming their positions. We suspect that this could have triggered the price fall, and weakness could persist if global funds continue to face high redemptions.

Restructure cancellation renders SAR a pure Indonesian coal play: SAR recently called off restructuring plans, citing volatile market conditions and lack of shareholders' support. To recap, the restructuring would have involved SAR acquiring coal interests in Madagascar and Brunei for US$100.3 million and taking up a secondary listing in Australia.

We were positive on the acquisition as it would have transformed SAR, which currently derives all its coal from Indonesia, into a global player with geographically diversified coal assets and larger reserves. The cancellation of the acquisition has eliminated what we view as a key catalyst for SAR's growth. Nevertheless, management remains positive on its organic growth and reiterates that it is on track to raise production levels at its Indonesian mines.

Pressure off its balance sheet: On the bright side, the restructure cancellation takes some pressure off SAR's balance sheet. We were expecting the US$100.3 million acquisition cost to be funded by debt, which would have been challenging in light of today's tight credit market and could have strained the company's gearing levels.

With the restructuring exercise out of its way, SAR can now focus on refinancing its US$230 million bridge facility (for the acquisition of
Jembayan) that matures in December 2008.

We understand that SAR is close to securing a US$300 million loan. Finance costs, however, are expected to rise in line with London Interbank Offered Rate (Libor) and widening spreads.

Changing our assumptions to factor in bear-case scenario: We have lowered our earnings and fair value estimates to reflect the following bear-case
assumptions:
lower production from FY2009, assuming that SAR fails to obtain
relevant permits to extend its Sebuku Mine boundary;
lower ASP on softening global demand for energy and commodities; and
higher borrowing costs.

In addition, we change our valuation methodology to the free cash flow to the firm model, bringing our fair value estimate to S$2.25 (from S$4.66).
Nevertheless, we maintain our 'buy' rating on SAR.

Singapore share market IPO - China Kunda Technology

OCBC short note :
Summary: China Kunda Technology Holdings Ltd. (China Kunda) is a provider of precision moulds, plastic injection parts, and IMD products. Based in Shenzhen city, Guangdong province, PRC, its plastic engineering solutions include design, R&D of plastic injection and IMD technologies. China Kunda will be publicly listed on SGX-ST on 9 October 2008. At an IPO price of S$0.215, China Kunda will raise about S$11.64m in net proceeds from the issue of the 67.2m new shares. The proceeds will be used to acquire Shenzhen Precision and corresponding investments in plant, machineries and production facilities, enhancement of R&D capabilities, expansion of sales and marketing network, and for general working capital. We do not have a rating on the stock.

comments :
FY07 profit only HK45.1m a rather small size company to float during turbulent times for the singapore stock market.....plus tech related sector is not too sexy at the moment......i will give it a Five Z rating (z = sleepy level)

Singapore share market update

listed companies results release date - updated on 4aug

Date of Release Company Remarks
5-Aug Celestial NutriFoods 1H FY08
5-Aug China Hongxing 1H FY08
5-Aug Hi-P 1H FY08; Before 9am
5-Aug Hyflux Water Trust 1H FY08; After 5pm
5-Aug Li Heng Chemical Fibre 1H FY08
5-Aug Mermaid Maritime 1H FY08
5-Aug Tuan Sing Hldgs 1H FY08; After 5pm
6-Aug SembCorp Industries 1H FY08; After 5pm
6-Aug Synear Food Hldgs 1H FY08; After 5pm
7-Aug Broadway Industrial Grp 1H FY08; After 5pm
7-Aug Centraland 1H FY08; After 5pm
7-Aug China Sun Bio-Chem Technology Grp 1H FY08; Profit Warning
7-Aug Electrotech Investments 1H FY08; After 5pm
7-Aug LMA Int'l 1H FY08
7-Aug Midas Hldgs 1H FY08; After 5pm
7-Aug NOL 1H FY08
8-Aug Hiap Hoe 1H FY08
8-Aug Hotel Royal 1H FY08; After 5pm
8-Aug NippeCraft 1H FY08
8-Aug SuperBowl Hldgs 1H FY08
11-Aug Eastern Asia Technology (Eastech) 1H FY08
11-Aug Fabchem China 1H FY08; After 5pm
11-Aug Ho Bee 1H FY08
11-Aug Lee Kim Tah 1H FY08; After 5pm
11-Aug MegaChem 1H FY08
11-Aug Pine Agritech 1H FY08
11-Aug Sino-Environment Tech Grp 1H FY08; After 5pm
12-Aug Armstrong Industrial Corp 1H FY08
12-Aug China Lifestyle Food and Beverages Grp 1H FY08; After 5pm
12-Aug China Taisan Tech Grp 1H FY08; After 5pm
12-Aug Chip Eng Seng 1H FY08
12-Aug Golden Agri-Resources 1H FY08; After 12.30pm
12-Aug Hong Leong Asia 1H FY08
12-Aug Hotel Plaza 1H FY08
12-Aug IFS Capital 1H FY08; After 5pm
12-Aug Macarthurcook Industrial REIT 1Q FY08
12-Aug SingTel 1Q FY08; Before 9am
12-Aug ST Engg 1H FY08; After 5pm
12-Aug Straits Trading 1H FY08
12-Aug UOL Group 1H FY08
13-Aug Advanced Holdings 1H FY08; After 12.30pm
13-Aug Breadtalk Group 1H FY08; After 5pm
13-Aug ComfortDelgro Corporation 1H FY08; After 5pm
13-Aug Datacraft Asia 1H FY08; Before 9am
13-Aug Ellipsiz FY08; Profit Warning
13-Aug Foreland Fabritech 1H FY08
13-Aug Petra Foods 1H FY08; Before 9am
13-Aug Swiber Hldgs 1H FY08; After 5pm
13-Aug United Overseas Insurance 1H FY08
14-Aug China Sports Int'l 1H FY08
14-Aug City Developments 1H FY08
14-Aug CSE Global 1H FY08
14-Aug FerroChina 1H FY08; After 5pm
14-Aug HTL Int'l 1H FY08
14-Aug IndoFood Agri 1H FY08; After 5pm
14-Aug Nera Telecommunications 1H FY08; After 5pm
14-Aug Wilmar Int'l 1H FY08; After 5pm
18-Aug Chosen Hldgs 1H FY08; After 5pm
18-Aug Jaya Hldgs 1H FY08
20-Aug ASL Marine 1H FY08; After 5pm
13-Sep China Flexible Pack 3Q FY08
29-Oct NOL Tentative

Singapore stock market news & update

Singpoare listed companies results release date - updated as at 31july08

4-Aug ARA Asset Management 1H FY08; After 5pm
4-Aug Cosco Corporation 1H FY08; After 5pm
4-Aug Memtech Int'l 1H FY08; After 5pm
5-Aug Celestial NutriFoods 1H FY08
5-Aug China Hongxing 1H FY08
5-Aug Hi-P 1H FY08; Before 9am
5-Aug Hyflux Water Trust 1H FY08; After 5pm
5-Aug Mermaid Maritime 1H FY08
5-Aug Tuan Sing Hldgs 1H FY08; After 5pm
6-Aug SembCorp Industries 1H FY08; After 5pm
6-Aug Synear Food Hldgs 1H FY08; After 5pm
7-Aug Broadway Industrial Grp 1H FY08; After 5pm
7-Aug Centraland 1H FY08; After 5pm
7-Aug Electrotech Investments 1H FY08; After 5pm
7-Aug LMA Int'l 1H FY08
7-Aug Midas Hldgs 1H FY08; After 5pm
7-Aug NOL Tentative
8-Aug Hiap Hoe 1H FY08
8-Aug Hotel Royal 1H FY08; After 5pm
8-Aug SuperBowl Hldgs 1H FY08
11-Aug Eastern Asia Technology (Eastech) 1H FY08
11-Aug Ho Bee 1H FY08
11-Aug Lee Kim Tah 1H FY08; After 5pm
11-Aug Sino-Environment Tech Grp 1H FY08; After 5pm
12-Aug Armstrong Industrial Corp 1H FY08
12-Aug China Lifestyle Food and Beverages Grp 1H FY08; After 5pm
12-Aug Golden Agri-Resources 1H FY08; After 12.30pm
12-Aug Hotel Plaza 1H FY08
12-Aug IFS Capital 1H FY08; After 5pm
12-Aug Macarthurcook Industrial REIT 1Q FY08
12-Aug SingTel 1Q FY08; Before 9am
12-Aug ST Engg 1H FY08; After 5pm
12-Aug Straits Trading 1H FY08
12-Aug UOL Group 1H FY08
13-Aug Advanced Holdings 1H FY08; After 12.30pm
13-Aug Breadtalk Group 1H FY08; After 5pm
13-Aug ComfortDelgro Corporation 1H FY08; After 5pm
13-Aug Ellipsiz FY08; Profit Warning
13-Aug Petra Foods 1H FY08; Before 9am
13-Aug Swiber Hldgs 1H FY08; After 5pm
13-Aug United Overseas Insurance 1H FY08
14-Aug City Developments 1H FY08
14-Aug HTL Int'l 1H FY08
14-Aug IndoFood Agri 1H FY08; After 5pm
14-Aug Nera Telecommunications 1H FY08; After 5pm
14-Aug Wilmar Int'l 1H FY08; After 5pm
18-Aug Chosen Hldgs 1H FY08; After 5pm
20-Aug ASL Marine 1H FY08; After 5pm
29-Oct NOL Tentative

Singapore share market news update 15july08

- China Energy - PricewaterhouseCoopers' review of company's CNY197.8 million acquisition of Jiutai Energy last year found no evidence of irregularity. According to PwC, additional CNY190 million came from company's IPO proceeds, used mainly to repay Jiutai's debts, incurred to fund construction of phase 1 of its DME production plant. PwC says while review uncovered no discrepancy, China Energy failed to disclose payment of bulk of CNY190 million in 3Q07 to explain fall in its cash balance. Company says it'll take steps to strengthen its approval processes.

- Indofood Agri Resources said it did not plan to issue new shares to help repay loans that will become due next month.

- Singapore's central bank said it is closely monitoring financial markets in the wake of the crisis surrounding U.S. mortgage giants Fannie Mae and Freddie Mac, and warned of big downside risks in global markets.

- ST Engineering’s aerospace arm has signed an agreement for global cooperation with GE Aviation.

- Advanced Holdings has landed four new contracts totaling S$19.3m for projects in Singapore and China.

- Chosen Holdings warned it expects to report lower profits for FY08, citing lower demand from the data media storage industry and the slow ramp-up of new programs for the Malaysia and Thailand operations due to the slower US economy.

- ECS Holdings said it is working on a possible placement of shares to a sufficient number of placees in order to meet the 10% public free float requirement.

Singapore Share Market S-chips update :

Composition of the Merrill Lynch S-shares index
BBG Code Short Name Market Cap (USD MM) Weight Sector

COS SP Cosco Corp Singapore 5,462 6.63% Industrials
YZJ SP Yangzijiang Shipbuilding 2,175 6.63% Industrials
FRC SP Ferrochina Limited 734 6.63% Materials
CHHS SP China Hongxing Sports 842 6.63% Consumer Discretionary
LHCF SP Li Heng Chemical Fibre 817 6.63% Consumer Discretionary
YLLG SP Yanlord Land Group 2,823 6.63% Financials
CEGY SP China Energy Ltd 429 6.63% Materials
CENU SP Celestial Nutrifoods 371 6.63% Consumer Staples
CXLX SP China Xlx Fertiliser 568 6.04% Materials
SINOT SP Sino Techfibre 423 5.28% Consumer Discretionary
CMILK SP China Milk Products 414 5.22% Consumer Staples
SINE SP Sino-Environment Tech 348 5.04% Utilities
SYNF SP Synear Food Holdings 431 4.67% Consumer Staples
SVC SP Sunvic Chemical 158 3.75% Materials
CZAI SP China Zaino International 378 3.59% Consumer Discretionary
DLNG SP Delong Holdings Ltd 1,286 3.34% Materials
MIDAS SP Midas Holdings Ltd 560 3.13% Industrials
JIUC SP Jiutian Chemical Group 163 2.70% Materials
PAG SP Pine Agritech Limited 360 2.13% Consumer Staples
FBCM SP Fibrechem Technologies 434 2.09% Consumer Discretionary

Source: Merrill Lynch Equity Derivatives Strategy
Weights as of 30-Jun-08

SINGAPORE SHARE MARKET UPDATE 4july2008
- Another IPO bites the dust

Hong Kong dry-bulk shipping line Maritime Capital Shipping has
decided not to proceed with an initial public offering (IPO) in the Singapore Stock Exchange due to weak sentiment for the Singapore stock market in recent weeks.

"The performance of the global equity markets has deteriorated
sharply in the last few days and equity markets have closed for
IPOs, regardless of the underlying fundamentals of the company,"
said Maritime Capital chief executive officer Mark Harris. Mr. Harris
did not say when or whether the company might revive listing
plans.

After witnessing the "failure" of some of the recent IPOs in Singapore stock market, most investors would find it hard to jump into another IPO.
Most recent Singapore IPOs have tanked on day one of listing and are
still trading below their respective IPO prices. The last count is that
15 of the 18 new companies whose shares are listed in the Singapore stock exchange this year are now trading below their offer prices.

After the recent sell off in the broad market, some recent IPOs are
trading at 3-4 times FY08 earnings.......its no wonder new IPOs are finding hard
convincing investors to subscribe to them at 4-5 times FY07 earnings.