COSCO, dmg upgrade to NEUTRAL from SELL with target price $1.14($0.92)

EZRA, dbs maintain BUY with target price $1.53($1.45)
EZRA, jpm maintain NEUTRAL

FIRST SHIP LEASE TRUST by cl

FRASERS CENTRE POINT, uob maintain BUY with target price $1.44

KEPPEL CORP, dmg upgrade to BUY with target price $7.96($5.24)

KEPPEL LAND, ocbc downgrade to SELL from BUY with target price $1.61

LI HENG, daiwa downgrade to HOLD with target price $0.2($0.22)

PETRA FOOD, dbs downgrade to FULLY VALUED from HOLD with target price $0.53
($0.35)

SEMBCORP MARINE by cl
SEMBCORP MARINE, dmg maintain BUY with target price $3.04($3.02)

SGX, kim eng upgrade to BUY from HOLD with target price $8.30($5.30) EPS
for FY 09/10 revised to UNCHANGED and 21%
SGX, mac maintain OUTPERFORM with target price $8.80($7.37) EPS for FY09/10
raised by 2% and 12%

YANG ZI JIANG, mac maintain UNDERPERFORM with target price $0.38($0.28) EPS
for FY 09/10 raised by 23% and UNCHANGED

YANLORD by cl
YANLORD by daiwa

BREAD TALK, kim eng maintain BUY with target price $0.6

CHINA HONGXING, kim eng maintain SELL with target price $0.16
CHINA HONGXING, uob maintain SELL with target price $0.1($0.11) EPS for FY
09-11 cut by 26-28%

EPURE, cimb maintain OUTPERFORM with target price $0.52($0.37)

EU YAN SANG, ocbc maintain HOLD with target price $0.37($0.3)

GENTING SP, cimb maintain UNDERPERFORM with target price $0.51(from $0.36)
GENTING SP by cl
GENTING SP, ocbc maintain SELL with target price $0.45($0.33)

HONG LEONG ASIA, csfb maintain NEUTRAL with target price $1.20($0.7) EPS
for FY 09/10 raised by 11% and 7%

LI HENG, uob maintain BUY with target price $0.29($0.23)

MIDAS, cimb downgrade to NEUTRAL with target price $0.7
MIDAS, csfb maintain OUTPERFORM with target price $0.8($0.75) EPS for FY
09/10 raised by 2% and unchanged
MIDAS, dbs maintain BUY with target price $0.82($0.6)
MIDAS, ocbc downgrade to HOLD from BUY with target price $0.64($0.63)

MIIF, mac maintain OUTPERFORM with target price $0.59

PAN UNITED, ocbc downgrade to HOLD from BUY with target price $0.52($0.47)

PETRAFOOD, cimb downgrade to UNDERPERFORM from NEUTRAL with target price
$0.58($0.4)

SIA, ubs maintain BUY with target price $14

SINGTEL, cimb maintain OUTPERFORM with target price $3.05
SINGTEL, dbs upgrade to BUY from HOLD with target price $3.05($2.75) EPS
for FY 09/10 revised by unchange and 6%
SINGTEL, ocbc maintain BUY with target price $3.18($3.09)

SSH CORP, ocbc maintain HOLD with target price $0.16($0.11)

STARHUB, mac maintain OUTPERFORM with target price $2.45

STRAITS ASIA, dbs maintain BUY with target price $1.55($1)

WILMAR, am fraser maintain BUY with target price $5.05
WILMAR, cimb maintain OUTPERFORM with target price $5.30
WILMAR by cl
WILMAR, csfb maintain NEUTRAL with target price $4.54($3.84) EPS for FY
09/10 raised by 18% and 18%
WILMAR, db maintain HOLD with target price $3.30
WILMAR, dbs maintain BUY with target price $5.15($4.55) EPS for FY 09/10
raised by 26% and 22.3%
WILMAR, mac upgrade to OUTPERFORM from NEUTRAL with target price $5 EPS for
FY 09 raised by 31%
WILMAR, ssb maintain BUY with target price $5.30($4.33)
WILMAR, uob maintain BUY with target price $4.80(3.50)

singapore stock market news,singapore stock market

SYNEAR, uob maintain BUY with target price $0.72

CHINA SKY, citi maintain BUY with target price $1.03($1.16)
CHINA SKY, csfb maintain OUTPERFORM with target price $1.17($1.22)
CHINA SKY, cimb maintain OUTPERFORM with target price $2.25($2.62)
CHINA SKY, dbs downgrade to HOLD with target price $0.96($1.70)
CHINA SKY, uob maintain BUY with target price $1.74($2.16)

CHINA SUN BIO-CHEM, wc maintain HOLD with target price $0.23

CHINA ZAINO, cimb maintain OUTPERFORM with target price $0.95
CHINA ZAINO, uob maintain BUY with target price $0.725

CREATIVE, csfb maintain UNDERPERFORM with target price $5.50

FIBRECHEM, cimb maintain OUTPERFORM with target price $1.46

HK LAND, mac downgrade to UNDERPERFORM with target price $3.50($4.70)

HYFLUX, csfb maintain OUTPERFORM with target price $3.60
HYFLUX, dbs maintain BUY with target price $3.34($3.53)

KEPPEL CORP, mac maintain OUTPERFORM with target price $13($13.90)

LI HENG, dmg maintain BUY with target price $1.35
LI HENG, ocbc maintain BUY with target price $1.16

NOL by ubs

OCBC, csfb maintain NEUTRAL with target price $9

SEMBCORP INDUSTRIES, cimb maintain OUTPERFORM with target price $5.82
SEMBCORP INDUSTRIES, cl maintain OUTPERFORM with target price $4.90
SEMBCORP INDUSTRIES, csfb maintain OUTPERFORM with target price $5.20
($6.10)
SEMBCORP INDUSTRIES, dbs maintain HOLD with target price $4.76($4.59)
SEMBCORP INDUSTRIES, gs maintain NEUTRAL with target price $4.90
SEMBCORP INDUSTRIES, mac maintain OUTPERFORM with target price
$5.10($5.25)

SEMBCORP INDUSTRIES, ubs maintain BUY with target price $5.28
SEMBCORP INDUSTRIES, uob maintain HOLD with target price $4.70

STARHUB, cimb remains NEUTRAL with target price $3(from $3.20) EPS for
FY08
and 09 lowered by 9.7% and 7.1%
STARHUB, cl maintain OUTPERFORM with target price $3.25
STARHUB, csfb maintain UNDERPERFORM with target price $2.70
STARHUB, dbs downgrade to FULLY VALUED with target price $2.60($3.10)
STARHUB, ocbc maintain BUY with target price $3.19($3.51)

STRAITS ASIA, dbs maintain BUY with target price $4.77
STRAITS ASIA by gs

SYNEAR, uob maintain BUY with target price $0.72

TSIT WING, ocbc downgrade to SELL with target price $0.24($0.285)

VENTURE, cimb maintain OUTPERFORM with target price $13.42($16.35)
VENTURE, csfb maintain OUTPERFORM with target price $12.70($13.70)
VENTURE, dbs maintain HOLD with target price $11.86($12.81)
VENTURE, kim eng maintain HOLD with target price $11.10
VENTURE, ocbc downgrade to HOLD with target price $11.21($12.84)
VENTURE, ubs downgrade to NEUTRAL with target price $11($14)
VENTURE, uob maintain BUY with target price $13.50

LI HENG, dmg maintain BUY with target price $1.35
LI HENG, ocbc maintain BUY with target price $1.16

LI HENG, dmg maintain BUY with target price $1.35
-Financials looking strong.Li Heng registered revenue of RMB1.17b for
2Q08,
up 61.6% YoY from RMB722.8m and 45.3% QoQ from RMB 803.7 in 1Q08. NPAT
also
jumped 42.5% YoY, from RMB238.9m in 2Q07 to RMB 340.4m in 2Q08. This
was
credible given the fact that the Group incurred about RMB49.4m of tax
expenses, versus a tax-free environment in 2Q07. Gross profit margins
have
remained stable for 2Q08, coming in at 34.6% versus 34.5% the year
before
and 34.4% in 1Q08.
-Operating expenses well controlled. Despite operating in a period of
rising costs, Li Heng still managed to maintain its sales &
distribution
expenses as a proportion of revenue at around 0.6%, which highlights
its
strong ability to manage transport costs headcount. Administrative
expenses
for this quarter took a spike YoY from 0.4% to 0.8% as a proportion of
Group revenue, which is mainly attributed to IPO share issue expenses
and
professional fees.
-An optimal product mix is essential. Gross margins appear to be
stable.
However, delving into the gross margins for its individual product
segments
reveal that it actually has fallen for the quarter. HOY/POY slid
slightly
by 0.2ppt, but FDY and DTY shed more, coming down 1.2ppt from 38.2% to
37.0% and 2.7ppt from 39.9% to 37.2% respectively. Management
attributed
this to the expansion of product offerings to include new products with
slightly lower gross margins. DTY products (used to make laces and
women’s
lingerie) have lost more ground in gross profit terms as management
claims
this has been the product segment that has received the most
proliferation
and introduction of lower-priced products.
-Management has nonetheless shown flexibility and keen anticipation by
selling less low margin HOY/POY (1H07 76.2% of sales versus 1H08 60.2%
of
sales) and focusing on higher margin FDY (1H07 11.2% of sales versus
1H08
31.9%of sales), which seems to be the most popular (due to demand for
sports jackets and windbreakers that previously were made of polyester
fibre).
-Expansion reaps positive results. The main reason behind the strong
rise
in Li Heng’s top line is the expansion of its total production
capacity,
which rose from 92,400 tonnes in FY07 to 167,200 tonnes as of 2Q08.
Production volume for 2Q08 was up 64% to 34,820 tonnes versus 2Q07 of
21,232 tonnes. Besides raking in more sales, this helped the Group
achieve
better economies of scale, comfortably meet demand from its customers,
and
enabled it to offer a wider product range to its clients. In addition,
a
bigger production capacity meant that Li Heng successfully increased
its
market share and strengthened its in-house brands of “Liyuan” and
“Liheng”
in its geographical coverage.
-This is vindicated by its growing customer base, from 160 (Dec 07) to
178
as of end 2Q08. More interestingly, we interviewed a reasonably large
independent polyester fibre player in the Fujien Province recently and
they
affirmed Li Heng’s brand popularity and even gave good remarks about
their
product quality.

LI HENG, ocbc maintain BUY with target price $1.16
-Positive 2Q08 results. Li Heng Chemical Fibre (LHCF) reported a
sterling
set of 2Q08 results, which saw revenue jump 61.6% YoY and also 45.4%
QoQ to
RMB1168.4m, aided by higher sales volume as well as stable ASPs, as it
was
able to meet the increasing demand of its customers with a wider
product
range and better product mix. Net profit climbed by a slightly slower
42.5%
YoY (+51.9% QoQ) to RMB340.4m, but this was mainly due to the absence
of
taxes in 2Q07. 1H08 revenue rose 36.6% YoY to RMB1972.1m, meeting 55.5%
of
our FY08 estimate, while earnings climbed 19.2% to RMB564.5m, or 58.7%
of
our FY08 forecast.
-Strong showing from FDY segment. By segment, its HOY/POY business grew
8.0% YoY in 1H08 to RMB1187.9m, with fairly stable gross margin of
32.8%
(vs. 33.0% in 1H07); its FDY business surged 289% to RMB628m, aided by
the
sharp jump in capacity, although gross margin eased to 37% from 38.2%;
DTY
fell by 14.4% to RMB156.1m, while gross margin slipped from 39.9% to
37.2%.
Nevertheless, overall ASPs remained stable, as the 1% rise in HOY/POY
ASP
managed to offset the 1.8% and 18.0% decline in FDY and DTY ASPs,
respectively. We also understand that the large fall in DTY ASP was
mainly
due to a broadening of its products, and management expects the ASP to
stabilize from hereon.
-2H08 outlook cautiously optimistic. LHCF believes that the outlook for
2H08 remains cautiously optimistic. 1) It has not seen any major
negative
impact on its downstream customers, as most of them belong to the
highend
segment. 2) Raw material cost (mainly polyamide chips) has not only
stabilized but is also expected to ease 2-3% in 3Q08 in line with lower
crude oil prices. While the lower raw material price could translate
into
lower ASPs as LHCF typically passes on savings to customers, LHCF is
still
confident that the high utilization rates (>90% in 2Q08) would
continue. 3)
LHCF has largely filled its order book for 3Q08, and while the global
economic outlook remains uncertain, management believes the overall
textile
industry would recover, aided by the recent export rebate hike for
textiles.
-Keep BUY and S$1.16 fair value. LHCF has declared an interim dividend
of
S$0.015/share, or 22.5% of its 1H08 earnings; management remains
committed
to pay out at least 20% of its earnings as dividend in FY08 and FY09.
We
maintain our BUY rating and S$1.16 fair value.