July 2, 2012 / 1:58 AM / 5 years ago

STOCKS NEWS SINGAPORE-DMG starts Technics with buy rating

DMG & Partners has initiated coverage of Technics Oil & Gas Ltd with a 'buy' rating and a target price of S$1.28, citing attractive valuations, yield and earnings growth.

By 0139 GMT, Technics shares were 1.1 percent higher at S$0.94, and have gained about 10 percent so far this year, compared to a 12.5 percent rise in the FT ST Small Cap Index .

DMG expects Technics' net profit to grow at a compounded 12.6 percent on average a year over fiscal 2011-2014, driven by strong spending in the industry and capacity expansion in Vietnam.

Technics entered into an agreement to buy an existing private yard in Vietnam that will double its revenue capacity and will help it to secure more work in the country, DMG said.

It added that Technics' business model requires limited capital expenditure and generates strong operating cash flow. Its management guided for a dividend payout of 8 Singapore cents for this year, translating into a yield of 8.6 percent, DMG said.

0939 (0139 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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9:24 STOCKS NEWS SINGAPORE-OCBC ups Cache Logistics' target price

OCBC Investment Research raised its target price for Cache Logistics Trust to S$1.18 from S$1.11 and kept its buy rating, to reflect its acquisition of a logistics property in Singapore.

By 0108 GMT, Cache units were 0.5 percent higher at S$1.055, and have gained about 11 percent since the start of the year, outperforming the Straits Times Index's 10 percent rise.

Cache has received approval from unitholders to acquire Pandan Logistics Hub, which OCBC expects to contribute S$5.2 million in rental income to the real estate investment trust in the first year.

This translates to an initial net property income yield of 7.6 percent and is expected to add 0.28 Singapore cents to its distribution per unit (DPU) on an annualised basis.

"We continue to like Cache for its resilient portfolio, healthy financial position and attractive fiscal 2012 DPU yield of 7.9 percent," said OCBC in a report.

0910 (0110 GMT)

Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com

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