CHINA FISHERY, cimb maintain OUTPERFORM with target price $2.90

MMP PRIME REIT, ubs upgrade to BUY with target price $0.95

MOBILE ONE, dbs upgrade to BUY with target price $2.20

SIA ENGINEERING, uob upgrade to BUY with target price $3

SINGTEL, csfb maintain OUTPERFORM with target price $4($4.15)

SINO-ENVIRONMENT, ocbc maintain BUY with target price $1.68

STARHUB, dbs maintain FULLY VALUED with target price $2.50($2.60)

WILMAR, db initial coverage BUY with target price $4

WILMAR, db initial coverage BUY with target price $4
-A misunderstood downstream play that offers double digit growth.
Wilmar is
a key beneficiary of growing consumption of edible oils and proteins in
China. As the largest refiner, rising industry CPO output will raise
downstream profits, which along with expansion into other markets
should
ensure double digit growth and lower volatility to earnings. We
forecast
51%, 11% and 17% EPS growth in FY08E, FY09E and FY10E. We initiate with
a
Buy and TP of S$4.0.
-Vegetable oil growth drivers in place, seeking new ones. Wilmar has
strong
manufacturing, marketing and distribution network in its China
vegetable
oil and proteins business. It also has the strongest vegetable oil
brand in
Arawana¡±. Wilmar plans to replicate this model in adjacent products
such as
cereal milling, which is larger than the cooking oil markets, and
provides
it with substantial growth opportunities.
-Not a plantation play, refining and retail hedge out CPO price
declines.
We have a bearish outlook on CPO near term, but much of this is already
priced in. Less than 20% of Wilmar¡¯s earnings come from plantations,
so the
correction in the stock, which has been sold down as a proxy for CPO
prices
is overdone, in our view. Increased margins in refining, consumer
products
and volume growth should adequately compensate for lower profits from
plantations.
-Target price of S$4.0 based on ROE- COE methodology. Our target price
of
S$4.0 is based on ROE-g/COE-g approach, which we crosscheck with DCF
and a
sum-of-the-parts method. Our TP implies 13x FY09 earnings versus
average
trading multiple of 15x. Changes in the Chinese government¡¯s
agricultural
policies can negatively impact Wilmar. Animal diseases can affect
soybean
meal demand. Trade disputes, commodity cost and price volatility, and
currency swings are near-term market risks.