China Minzhong (BUY; Target Price: S$2.05) China Minzhong targets to raise fresh vegetable sales by 40-45 per cent in FY12 following the increase in its farmland area. This should give the group’s profitability a boost as the gross margin for fresh vegetables is typically higher at 60 per cent. In particular, the cultivation of high-value...

CapitaCommercial Trust (BUY; Target Price: S$1.63) CapitaCommercial Trust (CCT) has announced on June 16 that it has been granted permission to demolish Market Street Car Park (MSCP) to make way for its new ultra-modern Grade A office tower. The carpark, including its food court and all its shops, will be closed on June 30 and...

Ezion Holdings (BUY; Target Price: S$0.99) Ezion has entered a partnership to provide an accommodation jackup for deployment off the coast of Denmark. The new 50:50 JV, Atlantic Labrador, has secured a charter contract with a value of up to US$73.0 million over a four-year period to provide a North Sea Class accommodation jackup rig...

CapitaCommercial Trust (BUY; Target Price: S$1.59) CapitaMall Trust (BUY; Target Price: S$2.05) CMT and CCT announced that they will be issuing US$645 million worth of floating rates notes as part of its ongoing efforts to refinance the S$866 million CMBS (commercial mortgage-backed security) loan that is due to mature on September 13. The CMBS were...

City Developments Limited (BUY; Target Price: S$13.45) Based on the URA’s Written Permission issued in March, South Beach will comprise 644,871 square feet of office space, 60,924 sq ft of retail space, 701 hotel rooms and 180 residential apartments. Compared to the Provisional Permission granted in 2009, the retail GFA has been reduced by 60...

Biosensors International (BUY; Target Price: S$1.60) Biosensors International Group (BIG) has proposed to acquire the remaining 50 per cent stake in JW Medical Systems (JWMS) from Shandong Weigao Group Medical Polymer (Shandong Weigao). The purchase consideration amounts to S$625.4 million, comprising of  a cash payment of S$160 million; issuance of 260 million new ordinary shares...

Ascendas REIT (HOLD; Target Price: S$2.08) A-REIT announced on June 8 that it has been awarded the Fusionopolis site by JTC for S$110 million, which will be developed into a modern suburban business space facility. A-REIT will develop a suburban business facility of 25,000 square metres gross floor area (GFA) comprising 60 per cent business...

Ascendas REIT (NEUTRAL; Target Price: S$2.00) Ascendas REIT (A-REIT) has been awarded the business park site at Fusionopolis for S$110 million by Jurong Town Corporation (JTC). Completion of the business park is expected in 3QFY14. The site will be a modern suburban business facility of 25,000 square metres GFA, comprising 60 per cent business park...

Adampak Limited (Not Rated) Although Adampak has been trying to broaden its customer base in recent years, the HDD (hard disk drive) industry still accounts for half of its sales. Another significant segment is telecommunications (7 per cent of sales), while other electronics industries account for 31 per cent of sales. In total, the electronics...

Cosco Corp (BUY; Target Price: S$2.86) Cosco announced that it has secured an offshore contract worth US$25.85 million to build a semi-submersible barge from a Southeast Asia client. The barge has a capacity of 32,000 DWT (deadweight tonne) and is scheduled for delivery in 2Q12. Cosco’s year-to-date order win stands at US$1.829 billion, representing 73...

AusGroup (Not Rated) AusGroup’s 9M11 results showed improvement from FY10 with net profit up by 5.2 per cent YoY to A$8.1 million and revenue rising by 86.4 per cent YoY to A$453.8 million. This was boosted by higher revenue recognition with several projects reaching peak stages. However, the gross margins remained depressed at 8.8 per...

Adampak Limited (Not Rated) Adampak’s 1Q11 results were below expectations, with net profit of US$1.5 million accounting for only 15 per cent of our previous full year 2011 estimate. The variance was due to lower-than-expected sales and narrower-than-expected margins. We have reduced our earnings estimates by 25 per cent for 2011 and 12 per cent...