******** STI Direction - Lets have a look at when is a Good Entry level again for the overall Market. STI NOW 3195.

STI has tested the 3230 support level yesterday which it has held above since Jan this year. After 3230, support would be 3190 to 3200 which is where the 200 DAY MA (Dotted Blue Line) is hovering at. If this support does not hold as well, can see next support at 3160 which was the support consolidation phase in Dec last year. 3100 would be the next CRITICAL support which was actually the resistance STI broke above that resulted in the bullish run we have seen in the early part of the year. Can consider accumulating some Good blue chips on Dips when STI does trade within the 3100 to 3160 range. 3100 must hold or we can see further weakness in the market. Sti is mainly dragged down by blup chips banks and property counters which are more interest rate sensitve and are more affected wherever there are any signs of the FED’S stimulus measures scaling back. OPEN A FREE TRADING ACCOUNT NOW.

 

**** Accumulate on Dips: Ezion. Share price 2.31. ( Be prepared for the rebound, use this opportunity to accumulate at a discount)

Ezion has seen a slight pull back on a weak overall market. Support currently at 2.20 then 2.23. As long as this immediate support level holds, can consider accumulating on dips for a rebound back up. Resistance stands at 2.40 which it broke above last month but failed to maintain above. More upside to be seen to 2.50 if the 2.44 clears.

Stop loss at 2.18

 

DBSV – 6^TH June 2013

Ezion: BUY; S$2.25; EZI SP
Sky's the limit
Price Target : 12-Month S$ 3.00 (Prev S$ 2.52)

by: HO Pei Hwa
•        Raising FY14/15F earnings by 3/15% after imputing an additional 4/8 vessels to fleet
•        Poised to ride on the rising demand for liftboat/service rigs in Asia and robust activities in GOM
•        High earnings visibility with impressive EPS CAGR of 56% in FY12-15F
•        Maintain BUY, TP raised to S$3.00
Ample room for growth.  We revisited our earnings model for Ezion in an attempt to estimate its growth potential beyond its existing fleet and FY14. In our base case scenario, Ezion could add a further 4 vessels to its fleet during the rest of FY13 and another 8 in FY14 if it gears up to 1.3x, resulting in a 3/15% increase in our FY14/15F core earnings . Our recurring 3-year EPS CAGR will rise from 49% to 56%. There is room for further upside to our revised numbers from JV projects, sales & leaseback and equity raising exercises, which we have not factored in yet.
Fast growing international footprint.  As a relatively young player that started off in 2007, Ezion has made a significant breakthrough by securing liftboat/service rig contracts from national and independent oil companies for offshore Malaysia, Indonesia, Brunei, Myanmar, Vietnam, India, Middle East,  and even as far as Denmark and Mexico. Given the low penetration rate of liftboats in Southeast Asia, Ezion is well positioned to ride the potential rising substitution for liftboats and service rigs over workboats in the region. In addition, its strengthening ties with Pemex would allow Ezion to tap into the robust offshore activities in GOM.
BUY with a higher TP of S$3.00. We like Ezion’s unique business model that offers fascinating growth and high earnings visibility supported by long term contracts of 3-5 years. Ezion deserves to trade above the average of its small-mid-cap O&G service provider peers (10x PE) and closer to its 5-year peak of 19x. Hence, we are lifting our valuation peg from 12x to 14x, on revised blended FY13/14F recurring EPS, to arrive at a higher TP of S$3.00. Maintain BUY.

***** Trading BUY: Rowsley broke out of 0.455. Share price 0.46.

Following up from Previous call made on May 29, Last Wednesday. Rowsley has indeed broken out of it consolidation phase. As long as 0.45 holds as new support, short term upside intact. Target to 0.500 then 0.53. See previous call for more info.

0.465 clearing fast.

 

Property Counter to Short if Support is broken: Capitaland. (CFD TO Short sell Only)

Capitaland supported at 3.40 currently, has seen it touched the 3.40 level again today but still maintained above it. If this support breaks down, likely to head lower to probably 3.20 to 3.20 level.

Currently still holding above this support level. Can see that it has maintained above this 3.40 level since Nov Last year till now, like for seller to push it lower if support broken. One thing to NOTE is that it has broken below the 200 DAY MA ( Dotted Blue line) 3 days back and still below it as of now. If support at 3.40 does break down, short term downside likely with a Buy stop at 3.44.

 

 

****** Accumulate on Dips: Yoma. Share price 0.97 (Watch the breakout of Critical 1.00)

Yoma has broken the 0.925 resistance yesterday which was the high set in Feb this year. Support currently at 0.90 to 0.925. Yoma is likely to consolidate from 0.925 to 1.00 before testing critical 1.00. Can consider accumulating on dips near support level. Bullish in the short if the 1.00 and 1.005 clears out completely. As long as 0.900 holds as support, short term upside is still valid. A break above 1.00 can see it go to 1.10 possibly fast to see a new all time high. We will average up on the break of 1.005. Currently at TOP 5 Volume and forming new high.

Stop loss at 0.89.

  

DBSV – 4^TH JUNE 2013

Digicel makes compelling bid for Myanmar telco;

 

On Yoma: As discussed previously, a telco win would be positive for Yoma to evolve into a conglomerate and would add earnings/value to the stock over the long term. However, even a 5% stake in this US$6.6b project would require US$330m of capital. We feel Yoma may find the capital requirement challenging, but not impossible, to address at this juncture.

We have not factored in a telco license win for Yoma. If the consortium is successful, it could boost sentiment towards Yoma. However, the actual earnings impact may be immaterial, and possibly negative, in the first years because of aggressive initial capital investment.

**** Upward trend still intact above 1.00: Halcyon. Share price 1.04

Following up from Previous call made last Friday 31^st May 2013. Halcyon has indeed tested the 1.00 critical psychological resistance together and broke out convincingly. Currently at 1.03. Can consider to accumulate some on dips for those who have already made an exit at a reasonable profit. Support would now be 1.00 strongly. As long as this 1.00 holds in the near term, still a bullish stock to accumulate. Upward momentum don look like it’s going to stop anytime soon. Short term target now at 1.10. Might consolidate awhile like we have seen previously before testing resistance again.

Stop loss at 0.985 nevertheless.

***** Monitor closely: Yongnam. Share price 0.35. (Impending Breakout)

Following up from previous call made on 7^th May 2013. Yongnam has consolidated for about 2 weeks from 0.32 to 0.35 range. Monitor the breakout of 0.355 and 0.36. Those in view of a breakout can consider locking some positions around this level. Can considering averaging up on the breakout. Near term target price on breakout would be 0.38 to 0.400 level. As long as 0.35 holds as a new support level, short term upside intact.

Stop loss at 0.335.

 

Maybank KE – 4^TH June 2013

Yongnam International: Waiting on the “East Wind”; Buy TP $0.485

YNH SP | Mkt Cap USD341.9m | ADTV USD3.5m

Ø  Based on our latest info, we believe the indicative results for both Myanmar airport bids will come soon than earlier expected. We reiterate BUY and will be hosting management on an NDR in Hong Kong in June.

Ø  We now expect the award for extension of Yangon airport to arrive any moment. Estimated contract value is USD150m. Ascribing a 50% probability of winning to Yongnam, we add SGD0.045 to our TP.

Ø  The company announced a new 5-year SGD130m syndicated loan last week. This will be sufficient to fund the equity contributions for both airport projects. It also implies management is thinking big in terms of contract wins. We believe the impending announcements of the Myanmar airport projects will serve as concrete share price catalysts. We reiterate BUY with a street-high new TP of SGD0.485. 

 

***** Trading Breakout: Dukang. Share price 0.56.

Dukang has traded from 0.500 to 0.55 level for about a week and again today we have seen a breakout of 0.55 resistance level. New support now at 0.55 level. Short term target possible at 0.600. A break above 0.600 can see it trade higher to find new consolidation phase. Follow up from previous call made on 22 May 2013. As long as 0.55 hold, upside and momentum remains intact. Can consider averaging up on 0.600 breakout. TOP 30 Volume seen currently.

Stop loss at 0.535

 

See report from Next insights

Keeping up the momentum
The Dukang brand was recently endorsed by China’s Ministry of Foreign Affairs.  More than 200 embassies worldwide will have the option to serve Dukang baijiu at official banquets and use the liquor as official gifts presented to foreign dignitaries. In 4Q2013, it will step up on advertising and promotion (A&P) activities to bring the Dukang brand another leg up.  The management expects to increase its A&P activities in the quarters ahead but will ensutr that A&P expense over sales ratio will stay within 12% for the full year.
It will also start production of 700 new fermentation pools in July or August 2013, adding another 3,000 tonnes of grain alcohol production capacity to the existing 7,610 tonnes per year.