Gallant Venture (BUY; Target price: S$0.75) Gallant Venture reported a net profit of S$0.2 million for 2Q11. Revenue fell by 17.9 per cent due to the absence of land sales recognition, compared to S$12.4 million in 2Q10. Excluding land sales, revenue grew by 4 per cent on the back of higher utilities demand from visitors...

Asia Enterprises (OVERWEIGHT; Target Price: S$0.325) Asia Enterprises (ASEH) recorded 26 per cent YoY jump in revenue to S$46.9 million in 2QFY11, due mainly to robust sales to marine and offshore sector which rose 37 per cent YoY to S$36.6 million. The recovery in new-build and repair projects boosted demand for steel, resulting positive growth...

CapitaLand (BUY; Target Price: S$3.52) CapitaLand’s 2Q11 were in line with expectations, with 2Q11 revenue at S$740 million while net profit is at S$399 million driven by development project contributions including The Interlace, The Wharf Residence, Urban Resort Condominium in Singapore and completed China project, Riverside Ville, as well as partly higher fee-based income to...

CSC Holdings (NEUTRAL; Target Price: S$0.12) Despite 1QFY12 revenue rising 8.8 per cent YoY to S$84.5 million, CSC turned in a profit of S$0.8 million (down 74.6 per cent YoY), due to margin erosion arising from higher labour costs and interruption/delays in certain projects that was not within the company’s control. As a result, gross...

CapitaLand (BUY; Target Price: S$3.97) CapitaLand reported a 1H11 PATMI (net profit) of S$500.5 million. Excluding revaluations and impairments, PATMI would have been S$271.4 million, a 69 per cent improvement from last year. While the bottomline numbers are no longer representative due to the timing of profit recognition under IFRS 115, we believe the results...

OCBC (BUY; Target Price: S$12.10) Great Eastern Holdings’ (GEH) 2Q11 net profit stood at S$118 million (-26 per cent QoQ, +58 per cent YoY. Weaker QoQ earnings were attributed to lower non-par fund profits. This was expected due to relative movements of lower long-term bond yields coupled with a larger decline in long-term swap rates,...

Capitamall Trust (BUY; Target Price: S$2.05) CMT announced that Temasek Holdings, an existing tenant at The Atrium@Orchard, will be taking up additional office space in the same building, while Telecom Equipment (Singtel) will be taking a 3-year lease at JCube. Temasek Holdings currently has an existing lease at The Atrium@Orchard due to expire on 30...

Cosco Corp (HOLD; Target Price: S$1.80) Cosco posted weaker-than-expected 2Q11 earnings, with net profit diving 53 per cent YoY to S$31.9 million. Sequentially, 2Q11 net profit was even lower than 1Q’s already weak quarter. Gross margins declined from 11.1 per cent to 7.5 per cent, indicating that the improvement in execution has derailed. This was...

DBS (NEUTRAL; Target Price: S$15.70) DBS recorded 2Q11 net profit of S$735 million, between consensus expectation of S$750 million and our S$720 million forecast. Net interest income rose 6.9 per cent QoQ to S$1.20 billion, due to average interest-bearing assets rising 5.4 per cent QoQ. The strength of net interest income was due to asset...

Cache Logistics Trust (BUY; Target Price: S$1.11) Cache Logistics Trust reported S$15.5 million net property income (NPI), 6.1 per cent above IPO forecasts. 2Q sequential performance was relatively robust with gross revenue and NPI rising 9.2 per cent and 7.2 per cent to S$16.2 million and S$15.5 million respectively, lifting distributable income to about S$13.2...