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STOCKS NEWS SINGAPORE-J.P. Morgan starts Ezion at 'overweight'
September 17, 2012 / 5:48 AM / 5 years ago

STOCKS NEWS SINGAPORE-J.P. Morgan starts Ezion at 'overweight'

J.P. Morgan initiated coverage of Ezion Holdings Ltd with an ‘overweight’ rating and a target price of S$1.60, saying the company owns the largest and most sophisticated class of liftboats in the world and is one of the first to promote their usage in Asia and the Middle East.

Ezion shares were up 1.2 percent at S$1.275 on Monday. The stock has nearly doubled so far this year, versus the 23 percent gain in the FT ST Small Cap Index.

Increased offshore construction activities and ageing platforms are likely to drive demand for liftboats, J.P.Morgan said, adding that $1.3 billion worth of charters will drive a 33 percent earnings per share compound annual growth rate for Ezion.

The proceeds from Ezion’s issue of perpetual securities can also be used for an additional 3-5 liftboat contracts to be announced over the next 3-6 months, J.P. Morgan said.

It added that Ezion is well positioned to benefit from Australia’s need for liquefied natural gas infrastructure.

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1330 (0530 GMT)

(Reporting by Eveline Danubrata in Singapore;


13:15 STOCKS NEWS SINGAPORE-Shares at five-week high, Wilmar extends gains

Singapore shares hit a five-week intraday high, led by property and commodities firms such as Wilmar International Ltd and CapitaLand Ltd as risk appetite returned after the U.S. Federal Reserve announced a new securities-buying programme last week.

At 0453 GMT, the Straits Times Index’s was up 0.3 percent at 3,078.53 points, and the MSCI Asia Pacific ex-Japan was up 0.2 percent.

Palm oil firm Wilmar rose 2.2 percent to S$3.31, extending its gains on Friday after its first share buyback, signalling the management’s confidence in its business.

Developers City Developments Ltd gained 2.1 percent to S$11.64 and CapitaLand climbed 1.3 percent to S$3.22, while casino operator Genting Singapore rose 2.2 percent to S$1.41.

1302 (0502 GMT)

(Reporting by Charmian Kok in Singapore;


12:43 STOCKS NEWS SINGAPORE-Maybank upgrades Far East Orchard to ‘buy’

Maybank Kim Eng upgraded property firm Far East Orchard Ltd to ‘buy’ from ‘hold’ and raised its target price to S$2.82 from S$2.37, on expectations it will bid for more land or acquire more yield-accretive properties.

Shares of Far East Orchard were up 3.1 percent at S$2.36, and have jumped 84 percent so far this year, compared with the FT ST Consumer Services Index’s 3.8 percent rise.

Far East Orchard, formerly known as Orchard Parade Holdings, was restructured two months ago, which saw it acquire a 33 percent stake in the trustee and real estate investment trust managers of Far East Hospitality Trust, thus improving its recurring income stream, Maybank said.

Far East Orchard, which owns medical suites in Singapore, will benefit from the growth in medical tourism there, helped by demand from an ageing population and rising affluence.

The company could also acquire Scotts Medical Centre next year after refurbishment works are completed, further expanding its healthcare exposure.

1033 (0233 GMT)

(Reporting by Charmian Kok in Singapore;


9:56 STOCKS NEWS SINGAPORE-CIMB downgrades Tiger Airways to ‘neutral’

CIMB Research downgraded Tiger Airways to ‘neutral’ from ‘outperform’ and cut its target price to S$0.81 from S$0.90 as tougher competition in Australia and higher fuel prices could delay it from turning profitable.

By 0940 GMT, Tiger shares were 0.7 percent higher at S$0.745, and have gained 17.3 percent so far this year, compared to the FT ST Consumer Services Index’s 3.2 percent rise.

“Tiger’s fortunes ride on Tiger Australia breaking even, which could be delayed by pressure from the ongoing Qantas-Virgin rivalry,” said CIMB.

The brokerage expects bigger losses for Tiger in fiscal 2013 and cut its 2014-15 earnings per share estimate by 6 percent to reflect lower yields and losses in Philippines-based unit SEAIR.

The next few years are expected to be capital intensive for Tiger as it bears lease rentals on behalf of its associates until they turn profitable, said CIMB.

“While Australia’s outlook seems challenging, Tiger Australia should still be able to regain profitability in 2014” due to encouraging advance bookings and improving load factors, said CIMB.

0939 (0139 GMT)

Reporting by Charmian Kok in Singapore;

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