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.

 

***** Trading Buy: Halcyon. Share price 0.92. (Follow up from previous call)

A follow up from previous call made on Tuesday, 28^th May 2013.

Halcyon has again tested and broke above the 0.900 resistance level. Upward momentum looks strong still and support now remains as 0.900. Possible to accumulate on dips near support level. Short term target to critical 1.00 level, Will average up on this 1.00 break out. As long as 0.900 holds as new support, uptrend intact and we are bullish. Likely to consolidated above 0.900 to 0.95 before staging a new high.

Stop loss at 0.885.

 

UOBKH – 27^th March 2013

Valuations

• Halcyon Agri (Halcyon) is trading at 9.5x 2012 PE and 3.6x

P/B. Its 2012 net profit jumped by about 130% yoy to reach

US$10m.

Investment Highlights

• A solid midstream natural rubber player. Halcyon

operates in the midstream segment of the natural rubber

supply chain. This involves: a) procurement of raw rubber,

b) processing into technically specified rubber, and c) selling

to vehicle tyre manufacturers. It had a production capacity

of 92,380mt p.a. as of end-12 and is set to expand its

capacity by 65% within the next three years. Halcyon owns

and operates two processing facilities in Palembang,

Sumatra, while its merchandising and marketing office is in

Singapore.

Strong cash flow to support potential M&As. Halcyon

generated FCF of US$7m in 2012 and this boosted its cash

balance by 42% yoy to hit US$12m. We see the potential for

M&As in the upstream segment, which would enhance

Halcyon’s position in the natural rubber supply chain,

expand its earnings potential and capture better margins.

 

*** Short trade (Sell): Biosensors. Share price 1.16. (CFD Short Trade)

Biosensors has broken support and 1.185 convincingly today. Has closed at 1.16 today. Has broken down head and shoulder neckline support formed at 1.185. Note that it has also been supported above 1.185 since Dec last year till today but broke down today. Cautious. More downside to 1.15 then 1.10 might be possible. Possible to accumulate short positions below 1.185 level and take profit near 1.10 support.

Buy Stop at 1.205.

 

Maybank KE: 13 March 2013- Biosensors Int’l: Turning More Conservative; Downgrade to Hold, TP $1.28

We cut FY3/13-15F net profit forecasts by 9-11% and reduce our TP to SGD1.28 as we turn more cautious. We thus downgrade the stock to a Hold, seeing limited upside to our revised TP.

Ø      We believe that Terumo may struggle to regain market share in the next 1-2 quarters. M&A seems likely in 2013 but without any specifics, it could be tough to make a call on whether it would be positive or negative.

Ø       While Biosensors looks cheap at 12.6x FY3/14F PER, we do not expect its licensing revenue with Terumo to last for forever. This is the key reason why our TP is lower than consensus. We value it separately using DCF but we have attributed a fair 18x PER multiple on its core business. 

 

*** Monitor - Short Term Speculative Trade: GSH Corp. Share price 0.080. (Not for holding, short term with tight stop loss)

GSH has just tested and broken the 0.08 psychological resistance level. At this level, it has also just crossed above BOTH the 20 DAY MA (Green line) and the 200 DAY MA (Dotted blue line), which can signal short term uptrend in placed. More confirmation needed though and it has to cross 0.081 and 0.082 for more serious buyers to bring it higher. If that happens, short term target to 0.084 then 0.09. Currently at Top 5 Volume. If it stays and closes above 0.08, more potential upside possible and new support at 0.08.

Stop loss at 0.076 tightly