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  Bookmark this page   Friday, 04 Sep 2015
 
Today's Headlines
Ezra Holdings: Selling half of its subsea segment

Ezra Holdings has signed an MOU with Chiyoda Corporation for the latter to invest in Ezra’s subsea services business, EMAS AMC, to form EMAS CHIYODA Subsea – a 50:50 JV. As mentioned in our 28 Aug 2015 note, we believed there would be a positive reaction to the share price upon lifting of the trading halt, as the proposed transaction implies an equity value of US$360m for EMAS AMC, and the sale proceeds is estimated to reduce Ezra’s net gearing from 1.0x (pro forma post-rights) to about 0.8x. However, as what both parties have at this stage is a binding MOU pending Ezra’s shareholders’ approval and a firm agreement with Chiyoda following the satisfaction of certain conditions, we maintain our 0.35x FY15/16F NTA valuation on the stock, such that our fair value estimate remains unchanged at S$0.16. Though there may be trading opportunities in the near term, we maintain our HOLD rating over a 12-month timeframe.

 
  Market Pulse
Market Pulse: Consumer Sector (2 Sep 2015)
Market Pulse: Ezra, Libra, SATS, SMM (1 Sep 2015)
Market Pulse: Olam (31 Aug 2015)
Market Pulse: Telco Sector, Ezra, Olam (28 Aug 2015)
Market Pulse: SMRT (27 Aug 2015)
Market Pulse: S-REIT Sector (26 Aug 2015)
Market Pulse: Thai Beverage (25 Aug 2015)
Market Pulse: Aviation sector, Property sector (24 Aug 2015)
Market Pulse: Wing Tai (21 Aug 2015)
Market Pulse: First REIT (20 Aug 2015)
  Research
Ezra Holdings: Selling half of its subsea segment
Ezra Holdings has signed an MOU with Chiyoda Corporation for the latter to invest in Ezra’s subsea services business, EMAS AMC, to form EMAS CHIYO ...
Olam International: Mitsubishi deal is medium-term positive
Olam announced last Friday that Mitsubishi Corp (MIT) has become a long-term strategic investor in the company after buying a 20% stake via a “com ...
Telecom Sector: Upgrading to OVERWEIGHT
For the Jun quarter, the three telcos reported results that were mostly in line with our expectations; they have also kept their previous guidance ...
SMRT Corporation: Pricing-in of potential fare cut overdone
Singapore’s Transport Minister announced on 3 Aug a fare reduction of up to 1.9% by end-CY15 effective for a one-year period, affecting public bus ...
Singapore REITs: Muted outlook
Following the conclusion of the 2QCY15 results season, we note that out of the 23 S-REITs under our coverage, all four hospitality REITs reported ...
Thai Beverage PLC: Still positive in the long term
Following last week’s fatal explosion in Thailand, there have been concerns over the prospects for the country’s tourism industry. While there wou ...
 
 Strategy
Telecom Sector: Upgrading to OVERWEIGHT
For the Jun quarter, the three telcos reported results that were mostly in line with our expectations; they have also kept their previous guidance ...
Singapore REITs: Muted outlook
Following the conclusion of the 2QCY15 results season, we note that out of the 23 S-REITs under our coverage, all four hospitality REITs reported ...
Aviation Sector: Persistent headwinds
With no surprises, companies within aviation sector under our coverage reported yet another quarter of weak performances for 2QCY15. Large hedging ...
Property Sector: Urge caution on S-REITs; reallocate to high-end and growth themes
Against the backdrop of an impending Fed lift-off and declining sector DPU growth, we believe the risk-reward of the S-REITs sector has turned unf ...
Consumer Sector: Expect similar drags in 2Q
Following recent data updates on retail sales growth in our selected countries, we think that concerns highlighted during 1Q remains pertinent in ...
Oil & Gas: Lifting of Iran sanctions and related plays
A Joint Comprehensive Plan of Action regarding Iran’s nuclear program could be reached as early as tonight, paving the way for the lifting of sanc ...
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