Saturday, July 14, 2012

Brokers' call


Straits Times: Sat, Jul 14

MIDAS HOLDINGS

Broker: DBS Group Research

Recommendation: Buy

Target price: 49 cents

MIDAS Holdings has secured new orders worth 139.3 million yuan (S$28 million) from China and international customers.

The contracts were clinched by its aluminium alloy division, Jilin Midas Aluminium Industries.

The firm continues to win contracts from the metro segment and international projects, which will help it stay profitable.

Following these contract wins and deliveries in the second quarter of the 2012 financial year, the group's order book stands at 700 million yuan.

Orders could pile up again for Midas in this half of the year as China resumes orders for high-speed passenger trains, boosting the firm's earnings recovery and share price.

KEPPEL CORP

Broker: CIMB Singapore Research

Recommendation: Outperform

Target price: $14.80

THE pace of contracts for floating, production, storage and offloading (FPSO) platforms should quicken in this half of the year.

In addition to the US$200 million

(S$254 million) deal Keppel Brazil has just secured, it is also in the running for two more from Petrobras, potentially worth up to US$800 million.

IHS Petrodata expects 15 contracts to be awarded this year, which will be mostly conversions. Singapore rigbuilders are likely to benefit from the wave.

Oil price recovery, stronger orders and wider margins could trigger share price outperformance.

HOTEL PROPERTIES

Broker: Maybank Kim Eng Research

Recommendation: Buy

Target price: $2.75

THE firm holds a prime global portfolio of hotels, investment and residential properties.

Based on the market value of only its Singapore hotel assets, which include the Hilton, Four Seasons and Concorde hotels, and investment properties, the stock is worth $4.58 a share - more than twice its current price.

Orchard Parade Holdings' spin-off of Orchard Parade Hotel into a Far East hospitality real estate investment trust highlights the undervaluation of Hotel Properties' assets in the Orchard Road area. It should explore a similar restructuring exercise.

In addition, to encourage redevelopment, the Urban Redevelopment Authority has provided incentives such as higher plot ratios and extensions to boundaries. Hotel Properties could enjoy a boost in its plot ratios for these sites in Orchard Road if it were to embark on a redevelopment programme.

  
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
Email: marshe_inc@yahoo.com.sg
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

www.marshe.sg | www.marsheproperties.com.sg www.hudcsg.blogspot.com |
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