AIO Finance Analysis

The heavy correction has punished a lot of stocks, but one of those most heavily punished is Allco REIT. It has fallen more than 50% from $1.40 in May 06 to $0.67 currently. As such, I am placing Allco REIT on the stock alert with a buy at $0.67 at 50% below NAV.
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Source: Extraordinary Profits

Another stock we saw was GEMSTV. We expect to see it rally and some brokers give a high target price for it. We might see it break $0.415.
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Source: Steady Bull

Shares of Singapore Petroleum (SPC) rose as much as 3.8 percent to S$6.33 with 377,000 shares traded a dy after the firm said it had doubled its net profit in the fourth-quarter.

Singapore Petroleum Corporation just delivered another good set of earnings. Its been a very fruitful dividend stock for me. Overall, I am getting a yield of 13% on this investment this year. This goes to show that:

• The business is important
• The company operation is important
• The cashflow is important
• Valuation / Getting the right price is important.

Wee Hur Holdings

Shares of construction firm Wee Hur Holdings opened at S$0.30 on Wednesday, 20 percent above its initial public offering price of S$0.25 per share.

Upon opening, its shares had further risen to S$0.31 -- 24 percent above the IPO price. The company, which raised S$20.9 million at its IPO, plans to use the proceeds to fund acquisitions and take up larger contract projects.

Congrats to all who have got its IPO. Finally saw an IPO turning green. I hope many other IPO will share it success.

Source: Reuters

China Sky

Shares of China Sky Chemical Fibre rose as much as 9.6 percent to S$1.48 with 1 million shares traded after the nylon fibre manufacturer said it has agreed to acquire Qingdao ZhongDa Chemical Fibre for RMB450 million.
The Singapore-listed Chinese firm will pay 60 percent of the amount in cash, and the remaining 40 percent through the issue of 21 million new ordinary shares for between S$1.70 and $2.00 per share.

BBR Holdings

Shares of BBR Holdings rose as much as 14.3 percent to S$0.08 with 2.4 million shares traded after the firm said it secured a S$95.3 million contract to build an office complex.
The two 12-storey tower blocks in western Singapore are expected to be completed by August 2009, the firm said in a statement on Monday.
Source: Reuters

Jade Technologies Holdings

The 51 per cent drop in the share price of leadframes manufacturer, commodities & resources trader and real estate developer, Jade Technologies Holdings, since mid-October 2007 from 40.5 cents prompted group president and non-executive director Anthony Soh Guan Cheow to acquire an initial 5.5 million shares (direct) last Monday at 20 cents each. Mr Soh also has deemed interest of 445.7 million shares or 45.97 per cent of the issued capital.
The purchase was made after the group, along with listed firm E3 Holdings, announced that they would acquire a 49 per cent stake in oil refinery and 100 per cent stake in a 3 km land parcel in Jilin Province in mainland China. The purchase by Mr Soh was the first on-market trade by a director or substantial shareholder in Jade Technologies since July 2007.
The stock closed sharply lower at 12 cents on Friday.

UOB Kay Hian Holdings

Chairman and managing director Wee Ee Chao recorded his first trade in investment holding firm UOB Kay Hian Holdings in the past five years, with 1.29 million shares purchased last Tuesday and Wednesday at $1.74 each. The trade increased his deemed holdings to 117.9 million shares or 16.3 per cent. The rare acquisitions were made on the back of the 29 per cent drop in the share price since November 2007, from $2.42.
The chairman's purchases were significant as they were made at sharply higher than his sale prices in 2003. He previously sold 5.8 million shares from August to December 2003 at an average of 89 cents each. Those sales in 2003 were made at a profit based on the 2.7 million shares that he acquired in 2002 at an average of 65 cents each. The fact that he turned from a seller in 2003 to a buyer five years later at a sharply higher price indicates strongly that the stock is undervalued at $1.74 each. The stock closed higher from the chairman's last purchase price to $1.84 on Friday.

ArianeCorp

CEO Kea Kah Kim has reduced his stake in ultra high-capacity data networks provider ArianeCorp by 39.4 million shares or 39 per cent, after the stock fell by 47 per cent from 7.5 cents on Dec 28, 2007. The disposal was made last Monday at four cents each, which lowered his deemed holdings to 62.5 million shares or 8.2 per cent. The sale was made at sharply lower than his previous on-market purchase price, based on the five million shares that he bought from November to December 2004 at an average of 13.9 cents each. The stock has fallen sharply since January last year, from 13 cents to 3.5 cents on Friday.

LottVision

Legg Mason Inc ceased to be a substantial shareholder of digital video designer, developer and distributor, LottVision, on Jan 18 following the sale of 15 million shares at an estimated price of 15.5 cents each. The trade reduced its deemed holdings by 38 per cent - to 24.3 million shares or 4.9 per cent. The group lowered its interest to below 5 per cent on the back of the steep decline in the share price since July 2007, from 69 cents. Not surprisingly, Legg Mason's sale was made at sharply below its open-market purchase prices from April to August last year.The counter closed lower compared to Legg Mason's exit price at 13 cents on Friday.

China Oilfield Technology

We visited China Oilfield Technology (COT) recently to have a look at its operations. Crude oil prices have receded, but are at prices where enhanced oil recovery (EOR) techniques remain feasible. Specifically, EOR will have a starring role as the Chinese economy struggles for energy independence and addresses the mismatch between strong demand and peaking domestic supply. As a proven and major EOR player in a key domestic oil region, the potential for COT's business remains intact.

Current Price: S$0.49
Fair Value: S$1.01

M1

M1 posts 4.8% fall in Q4 net profit to $37.9m. MOBILEONE yesterday reported a 4.8 per cent fall in net profit to $37.9 million for the fourth quarter of 2007 as it spent more on keeping its customers and on higher staff costs. The smallest of three telcos here said that full 2007 net profit was up 4.4 per cent to $171.8 million. The fourth-quarter net profit missed the $41.3 million median estimate of six analysts surveyed by Bloomberg. Q4 revenues rose 2.9 per cent to $206.9 million. M1 announced a final dividend of 8.3 cents, bringing the total payout (including a capital distribution) to 15.4 cents for the year, representing an 8 per cent yield based on the $1.92 closing price yesterday. Chief executive Neil Montefiore said that it had been a tough quarter, and 2008 would be even more challenging. Although its customer base rose 14.8 per cent to 1.54 million, market share fell to 27.4 per cent at the end of November from 28.3 per cent in August and 28.5 per cent in November 2006.

Current Price:S$1.92
Fair Value: S$2.33

Centraland Limited

The Company is a premium brand property developer in Zhengzhou City, the provincial capital of Henan Province, which is one of the most populated provinces in PRC. It is principally engaged in the development and sale of residential and commercial properties.

5m Offer shares at S$0.50 each by public offer
240m Placement shares at S$0.50 each.
Issue Manager: Boulton Capital Asia Pte Ltd
Underwriter and Placement Agent: UOB Kay Hian
Closing date: 30 January 2008, 12pm.

SGX listed peers:

Yanlord Land has a current market cap of $4.8b on SGX and is considered one of the top property developer in China with strong foothold in key cities. FY06: Sales $952m, net income $170m, EPS 11.36 cents.

China Yuanbang has a current market cap of $201 million. FYJun 07: Sales S$67m, net income $15.6m, EPS 3.1 cents.

Sunshine Holdings has a market cap of $158m. FY06: Sales $119m, net income $30m, EPS 3.8c
Landbank 840,000 sqm.

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(Prospectus)

Source: Singapore IPO

Chartered Semiconductor

Valuation

Our target price of S$0.90 continues to be based on a 2008E P/BV of 1.0-1.3x, at a slight premium to our valuation for UMC due to CHRT’s improved technological edge. Benchmarking CHRT to UMC is justified in our view because the gap between the two companies in operating margins, ROE, weighted average tech node, and breakeven utilization is narrowing. We use P/BV as our primary valuation method due to the cyclicality of the industry, and earnings could be absent during downcycles.

Risks

We rate CHRT Medium Risk based on our quantitative risk-rating system, which tracks 260-day historical share-price volatility. Upside risks that could cause the shares to trade above our target price include stronger-thanexpected PC and handset demand, faster-than-expected inventory build by OEM/EMS customers, a better-than-expected wafer pricing environment, and faster-than-expected tech migration to 0.09um at 12" fab.

Mapletree Logistics Trust

4Q07 results above expectations. Revenue was up 49.9% yoy to S$40.3m while distributable profit was up 67.8% yoy to S$19.7m. Full-year revenue was S$141.7m with a distributable profit of S$71.8m and DPU of 6.57cts, which is 2% above our ‘s and consensus’ forecast. The strong performance in the last quarter was attributed to increased revenue from nine acquisitions completed in the quarter. 2007

Operating expenses were significantly below expectations as a result of economies of scale. As at 31 Dec 07, MLT’s portfolio reached S$2.379bn, with revaluation gains of S$125.58m. Target price lowered to S$1.36 from S$1.65.

CapitaCommercial Trust, Singapore's third-biggest property trust by market value, said on Thursday its fourth-quarter distributable income rose 14.5 percent due to higher rentals from its portfolio of office properties.

The trust said it earned net distributable income of S$32.3 million ($22.5 million) for the three months ended December, higher than the S$28.2 million it had earned in the year-ago period. CapitaCommercial Trust, 30-percent owned by Southeast Asia's biggest developer CapitaLand, will pay unit-holders 2.33 Singapore cents per unit for the quarter.

Cosco said it has won $422 million worth of shipbuilding contracts. The firm said in a statement that the contracts are expected to have a postive impact on the company's earnings for the fiscal year ending December 31 2008.

Singapore-listed heart stent maker Biosensors said Thursday that it has appointed Robert Michael Kleine as president and chief executive with immediate effect. He replaces Lu Yoh Chie who will continue as chairman, the company said in a statement.

Wee Hur Holdings Ltd.

Wee Hur Holdings Ltd specialise in construction projects, ranging from new construction, additions and alterations of existing buildings. Bascially we can use one phrase to describe this company - A "Brave" Construction Firm.

2,091,000 Public Offer shares at $0.25
81,558,000 Placement shares at $0.25
Joint Managers: SBI E2-Capital and Phillip Capital

Closing date: 28 Jan 2008 12pm (they should have chosen 8.08 am as the closing time)

Assuming EPS for 2007 is 1H07 x 2 = 3.6 cents, based on the IPO price of 25 cents, it is trading at a historical PE of 6.9x, which in my view, is reasonably priced. Assuming a EPS growth of 20% for FY 2008, the EPS will be 4.32 cents. Assuming a PE value of 8x, the 'fair value' will be around 34 cents.

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Source: Singapore IPOs

Afor Limited

(IPO booth at Raffles Place. It was unusually crowded due to freebies offered by the launch of My Paper).

Afor Limited is a one-stop premium retailer specialising in the sale of Apple brand products and its complementary products.

1m public shares at $0.33 each
22.5m placement shares.
Issue Manager: DMG & Partners and Primepartners Corporate Finance
Closing date: 16 January 2008

FY2007 ended 30 June 2007

Revenue - S$60m
Net profit - S$3.47m
EPS based on post share cap of 93.5m = 3.71 cents
PE based on IPO price - 8.9x

ASIAN MARKETS

Asian markets, with the exception of Taiwan, will likely have a rough start following Wall Street’s sharp fall last Friday as a result of warning by American Express of rising credit card defaults, confirming fears of the spread of the credit market contagion. Dow was down nearly 250 points or 1.9%. (KMT, the opposition party in Taiwan, scored a landslide victory at the legislative elections on Saturday, representing a repudiation of incumbent President Chen’s call for a referendum on Taiwan’s UN application. Taiwan’s presidential election will be held on Mar 22nd.

ELLIPSIZ

Ellipsiz warned that profit for H1 ended Dec ’07 will be “significantly lower” than a year ago, when the profit was a robust $10.89 mln. (Profit in H2 ended Jun ’07 had already slipped to $4.14 mln.) Ellipsiz has also appointed Melvin Chan as the new CEO, as Xavier Chong gives up the role to remain as Executive Chairman. Ellipsiz’s share price has dropped 70% since the prospective buyer terminated talks with the company in June; at 30.5 cents, Ellipsiz is at its lowest since 2003.

STATS

Even though the Temasek name would help STATS borrow cheaply, investors were certainly not impressed with its plan to distribute US$813 mln to shareholders, which works out to 37 US cents / Singapore cents per share by taking on more borrowings: the stock rose by “only” 4 cents on Friday before closing 2 cents higher at $1.52.

Assuming the plan goes ahead, STATS’ borrowings will rise to US$1.41 bln from US$683 mln and gross gearing to 2.2x from 0.5x. (As at end Sept ’07, STATS had cash of US$260 mln.) Those hoping to see Temasek take STATS private will just have to wait till the scheme is completed, a process that is likely to take months. (Temasek owns, at the close of its S$1.75 cash offer on May 18 ’07, 1,693,700,099

shares or 83.1% of STATS’ issued capital.)

CHEMOIL ENERGY

Chemoil has appointed Clyde Michael Bandy as Chairman / CEO with immediate effect. Bandy, Lead Independent Director of Chemoil since Aug ’06, has >35 years of experience in the energy industry, mainly with the Texaco / Chevron group. This is positive for Chemoil after the tragic demise of founder Chairman / CEO R Chandran last week, except that investors are likely more interested in the possibility of Chemoil becoming a takeover candidate. As we had commented last week, it may be premature to speculate on this, given the legal

implications arising from Mr Chandran’s demise - bulk of Chemoil Chandran owned are held in a trust.

SIA

Reflecting the first official response to the SIA / Temasek / China Eastern saga, the Xinhua News Agency said on Saturday that China “needs to urgently unify its civil aviation market and create a national network of aviation routes that can act as runway for the country to soar globally”. This is taken to signal the central government’s change of mind, now wanting to consolidate the key domestic players (Air China, China Eastern and China Southern) to create a super-carrier”. An official was also quoted as saying the lack of competition resulting from such a consolidation would not be an issue. This is obviously negative news for SIA as far as its China aspirations go.

Source: Lim & Tan Securities

First Ship Lease Trust - Purchase and Analysis of Purchase

I purchased some FSL Trust today at a market price of S$1.17 to add to my portfolio. After doing some research on the Internet and on forums for high-yielding stocks, I chanced upon shipping trusts. There are 3 of them currently listed on SGX, namely Rickmers Maritime Trust, First Ship Lease Trust (FSL Trust) and Pacific Shipping Trust (PST). Since this was a relatively new asset class and promised high yield, I decided to do my research to see what I could sniff out in terms of yield and returns.

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Source: SG Music Whiz

STATS ChipPAC to distribute US$813m by capital reduction
STATS ChipPAC, South-east Asia's largest provider of chip testing and packaging services, plans to return up to US$813 million to shareholders through a proposed capital reduction.

Old Chang Kee's success: it's no puff
UNDAUNTED by failed attempts to enter Japan, Myanmar, China, New Zealand and South Africa in the early 1990s, F&B group Old Chang Kee is now launching a second wave of overseas expansion - this time with a firmer hand.

Second A380 jet joins SIA fleet
SINGAPORE Airlines' second Airbus A380, which was handed over to the company in Toulouse, France, yesterday, will join the first one on the Singapore-Sydney route.

One-time gain lifts Ezra Q1 net profit to $188.4m
A HUGE one-time gain lifted offshore support and marine services company Ezra Holdings to a net profit of $188.4 million for its first quarter ended Nov 30, 2007.

SIA Engg - TP $4.92

I am neither a pure fundamentalist nor a technician but surely I have a little bit of knowledge on both. I am pretty surprised on the performance of SIA Engg past few days. Puzzled as to why it recoverered while the others have gone down, I tried to look at its chart. This is my first technical analysis on any company, and I shall give a try. Fundamentally I know SIA Engg is a good company.

As you can see, the stock has been hovering around its support and resistance of $4.14 and $4.95 respectively. It seems to have recently rebounded from its support with good volume and macd histogram. Expect the stock to hit $4.90 soon.

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Source: STI-Stocksinfo

Old Chang Kee IPO

Closing date of application: 14 January 2008
Commencement of trading: 16 January 2008

Established in the 1986, Old Chang Kee is engaged in the maufacture and sale of affordable food products under their "Old Chang Kee" brand name.

Beginning with just their signature product curry puff, they have now introduced more than 40 other food products sold through their takeaway retail outlets.

They also have dine-in operations at our Old Chang Kee Take 5 retail outlets located at Icon Village, Square 2, Ogilvy Centre, Golden Shoe Car Park, Eastpoint Mall and West Mall, which offer a suite of local delights such as curry chicken or beef stew in loaf/rice, sambal fish rice, curry noodles and nasi lemak as well as our food products.

At present, they have 54 retail outlets in Singapore, 2 retail outlets in KL, and 3 retail outlets in Chengdu....

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Source: Extraordinary Profits