Excerpts from analysts' reports


CIMB raises target of Straco to 76 cents

Analysts: Jessalynn Chen & Kenneth Ng, CFA

1Q14 net profit of S$5.4m formed 15% of our full-year forecast, which we deem broadly in line due to a seasonally weaker 1Q. 

Tourist arrivals at its two aquariums in Shanghai and Xiamen continued to climb higher, driven by favourable government policies. The better-than-expected revenue was offset by forex losses as the Rmb weakened against the S$ in 1Q14. 

We keep our Add recommendation, on expectations of stronger visitor arrivals as a result of favourable government policies. 

Our DCF-based target price rises to S$0.76 after reducing the liquidity premium from 5% to 2% and factoring in slight FY14-16 EPS revisions to reflect stronger visitor arrivals and higher expenses. 

straco_SOA5.14Above: Straco's Shanghai Ocean Aquarium. Photo: http://www.shanghai.gov.cn/

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CIMB says CWT's "outlook is now more positive"

jessalynn_kennethngAnalysts: Jessalynn Chen & Kenneth Ng, CFA (left)

1Q14 net profit of S$35.0m beat expectations, at 36% of our FY14 forecast and 31% of consensus. 

The results were strong across the board, but the beat was mainly due to higher contributions from the commodity marketing segment. 
We raise our FY14-16 EPS by 17-22% to reflect higher trading volumes, and our target price rises to S$1.92, still based on 9.1x CY15 P/E (its mean post-MRI acquisition). 

Our Add rating is premised on the growth potential of the core logistics segment given the new warehouses coming on stream in FY14-15, as well as strong momentum in the commodity marketing segment. 

NRA Capital maintains 100% upside potential for China Yuanbang Property

Analyst: Jacky Lee

yuanbang_5.14Earnings below expectations. China Yuanbang's 3Q14 net profit of Rmb9.1m (+441% yoy) came in 37% below our expectation due mainly to high-than-expected taxation, other variances included slightly lower-than-expected sales but offset by lower-than-expected operating expenses.

Cut earnings forecasts but maintain fair value. We have lowered our FY14 net profit forecasts by 9% to factor for higher taxation but kept FY15-16 numbers relatively unchanged.

Our fair value remains at S$0.36, still based on 30% discount to RNAV. Despite headwind ahead on China property sector. Maintain Overweight rating for deep discount to our fair value. 

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