Lunch bites

KIM ENG
Lunch Bites - Cosco Corp Top volume featureCOSCO (COS SP, $1.63) – Cosco’s volume has picked up after it announced a groundbreaking drillship order worth more than US$500m. We have upgraded Cosco to a BUY. Technically, it is poised for more upside with the breakout of an ascending triangle. RSI is positive and support is at $1.56.

Top Idea

KIM ENG Top Idea

Overall volume traded is still thin... Highest volume Capitaland
Infrastructure
Midas Holdings (MIDAS SP) – Positive contract momentum
Midas announced two contracts yesterday worth a total of RMB130m. We estimate this brings the total contracts/letter of intent it secured in the last month to RMB290m. With improving market sentiment and positive contract momentum, we postulate that its Hong Kong dual-listing plans could be coming to fruition. We continue to peg our target price to 22x FY10F, in line with its peers in Hong Kong, and maintain our BUY recommendation with target price of $1.22.

Remisier Business: The game of how well you know your customers....

Hey guys, I'm so sorry that I haven't been blogging recently.... there were some changes in my work so I was busy doing the necessary paperwork.. but I am really glad that some of you are following up on the articles I wrote.
I have been meeting up with a lot of remisiers and dealers recently, just trying to understand how they succeed in their business when this industry is so competitive. I realise that it really takes a lot of perserverance, determination, EQ, foresight, passion and patience to walk through this long, tiring but rewarding career. The best sentence came from a remisier I have hardly know for two hours and he said that the remisier business is a game of how well you know your customers. His words keep ringing in my mind and I will definitely register all the kind teachings from the seniors... and my uncle who provided advices and took care of me in Kim Eng Securities....

There I go again.... rested enough and starting my engine again... Nothing fails if I'm determined and hardworking... Thank you for giving me the support and I hope to have your continual support.

The market has been really boring since the beginning or World cup. The volume traded in the market is quite low and the investors doesn't seem to be coming in... Counters breakout but did not hold. Market is clearly in a consolidating state and might unfortunately, last the entire year.

US market open negatively but closed positvely yesterday but did not have a significant effect on the Singapore market. If you search the news website like bloomberg or cnbc for information, you will realise that the overall market economy is not stabilized at the moment. Fortunately, the Q2 results for most of the companies is still acceptable or improving.

KIM ENG
PropertyKeppel Land (KPLD SP) – Tasting the fruit of its labour
Keppel Land (KepLand) reported a 1H10 PATMI of $134.7m. While this makes up 40% of our full-year estimate, it is largely in line with expectations as we anticipate even stronger contributions from its residential projects in 2H. Following good response to its recent launches in China, it has lined up more launches in 2H10.
The strong Singapore GDP forecast for 2010 should continue to underpin KepLand’s position as the leading prime Grade A landlord. New acquisitions from the Government Land Sale programme could also be on the horizon. Maintain BUY at a target price of $4.85.

Market Talk
Retail – Osim International (OSIM SP)banked cushy profits for its second quarter ended 30 June, with a 142% year-on-year surge from $5m to $12.1m. Revenue, fuelled by the launch of new products such as the uSoffa Petit, grew 12% from $117m to $131m. “Our product innovation and competitive positioning continued to drive consumer demand. We launched uMama Warm which exceeded sales expectations,” said Ron Sim, OSIM’s founder and chief executive. For the six months ended 30 June, net profit grew 146% to $20.1m, bolstered by strong margins. Revenue for the same period was up 22% year-on-year, from $213m to $259m.

Genting Singapore by Merrill Lynch

Haven't update this blog for a long time.... There are some changes to my job and have been pretty busy trying to make changes and updating all information. The world cup is coming to an end soon and it may be time for the market to improve. However, the world news are still causing jitters to the stock market.

Raise PO to S$1.40, implying 14x 2011E EV/EBITDA for RWSWe lift our earnings forecasts for Genting Singapore and thus raise our SOTPbased
PO to S$1.40, implying 23% upside. Short-term catalysts include the
completion of the UK asset sale as well as quarterly earnings, which we believe
will exceed consensus estimates. Despite the strong turnaround in share price
performance recently, we maintain our high conviction Buy on this stock.
Very little dilution from MBS opening and FIFA World Cup
A recent company visit reaffirmed that its casino operation at Resorts World
Sentosa (RWS) has not seen much dilution from the Marina Bay Sands (MBS)
grand opening and the on-going FIFA World Cup. Daily casino revenue remains
close to the levels the firm attained when it operated as a monopoly in early 2010.
Slot machines remain star performer; raising earnings
Despite the increased competition from MBS, slot machine performance at RWS
remains strong. We attribute this to the strong product offering – electronic table
games, progressive jackpots and a higher payout ratio – which enables it to gain
market share from slot clubs in Singapore.
As a result, we raise our 2010 and 2011 EBITDA assumptions by 13% and 12%,
respectively, to account for slots’ sustainable strong performance, which accounts
for over 20% of group forward earnings. With the upgrade, our 2010 and 2011
EBITDA forecasts are 41% and 26% above consensus.
UK disposal positive, enhancing focus and balance sheet
The proposed disposal of its UK casino business is a positive, in our view. It
enables management to concentrate on the ramp-up of RWS over the next 1.5
years, including junket introduction, the Universal Studio extension, new hotel
offerings and the Marine Life Park. More importantly, it will further enhance the
group’s balance sheet to prepare itself for the next leg of growth – possibly in
developed market jurisdictions – by 2012.