4 October 2012
Disclaimer:
DMG & Partners Securities Pte Ltd may have received compensation from the companies covered in this report
for its corporate finance or its dealing activities; this report is therefore classified as a non-independent report.
Please refer to important disclosures at the end of this publication.
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Morning Matters
Figure of the Day
Source: google.com
We are inviting TTJ, which provides the steel
structures for the Helix Bridge at Marina Bay
and the SuperTrees of Gardens by the Bay,
for a luncheon presentation today. See
Scoop of the Day.
Market Indices
Value Chg % Chg
Dow Jones 13,494.6 +12.25 +0.09
S&P 500 1,451.0 +5.24 +0.36
Nasdaq 3,135.2 +15.19 +0.49
FTSE 100
5,825.8 +16.36 +0.28
Nikkei 8,746.9 -39.18 -0.45
Hang Seng 20,888.3 +47.90 +0.23
Shanghai 2,086.2 - -
KOSPI 1,996.0 - -
STI 3,077.1 -2.00 -0.06
KLCI 1,649.8 -1.28 -0.08
Key Indicators
Value Chg % Chg
Oil Price*
(US$/bbl)
88.14 -3.75 -4.08
Gold Price**
(US$/oz)
1778 +3.30 +0.19
US$/S$ 1.2317 +0.00 +0.09
* WTI Crude Future
** Gold Spot
While You Were Sleeping
US markets: Positive
Dow futures: +18 (as at 8am Singapore Time)
US Wrap: U.S. stocks finished with mild gains Wednesday as better-thanexpected
services sector and payrolls data offset a sharp decline in Dow
component Hewlett-Packard (HPQ). HP was by far the biggest loser in the
Dow, falling nearly 13% as CEO Meg Whitman, at a her first analyst meeting
Wednesday since taking over at the helm in September 2011, warned that
earnings are expected to weaken in 2013 before her efforts at improving the
company begin to kick in. The Dow Jones Industrial Average rose more than
12 points, or 0.09%, to finish at 13,495. The blue-chip index, which briefly
dipped below the flat line in the final hour, has now risen in two of the past
three sessions and is up 10.45% so far in 2012. The S&P 500 gained more
than 5 points, or 0.36%, to settle at 1451, while the Nasdaq rose in excess
of 15 points, or 0.49%, to close at 3135. November crude oil futures slipped
$3.75 to settle down $88.14 a barrel, while December gold futures rose
$4.20 to settle at $1,779.80 an ounce. The benchmark 10-year Treasury
rose 1/32, diluting the yield to 1.620%. The greenback was up 0.26%,
according to the dollar index.
The Day Ahead…
Scoop of the Day: TTJ Holding’s key business activities are in the design,
supply and fabrication of structural steelworks for use in the construction of
buildings, factories, plants and infrastructure. It also operates two
dormitories in Singapore with a total capacity of 5,700 persons at Jalan
Papan. Its existing factories at Pioneer Road, Singapore and Keluli, Johor,
have a combined fabrication capacity of 42,000 tons per annum. Riding on a
strong pipeline of contract works for major infrastructural and industrial
projects such as the LNG Terminal on Jurong Island and the SuperTrees at
Gardens by the Bay, the group reported a strong set of results for FY12
(ending July), with net profit rising 15% to S$16.6m. This was underpinned
by a 54% surge in revenue to $129m for the structural steel division, while
the dormitory brought in revenue of $14m. With an existing orderbook of
$126m to be fulfilled over the next 2 years and a steady earnings stream
from the dormitory division, we see good earnings visibility for the group.
Contract opportunities in Singapore is underpinned by developments such
as Ophir-Rochor project, Marina One@ Marina Bay, GuocoLand Tanjong
Pagar, SUTD University, MRT DTL3, MRT Thomson Line and Changi
Airport Terminal 4, amongst others. Meanwhile, the group is pursuing a
number of potential projects in Malaysia to further diversify and grow its
revenue pie. at 4.4x P/E, the stock remains attractively priced and offers a
yield of 3.8%. (Goh Han Peng)
WHAT’S INSIDE?
Insider Trade Highlights 3 Oct 12
Diary of Events