STOCKS NEWS SINGAPORE-Yangzijiang to benefit from ship orders-Merrill

Tue Apr 17, 2012 11:21pm EDT

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Bank of America-Merrill Lynch said it sees China-based Yangzijiang Shipbuilding Ltd benefiting from potential orders after a revival of interest from container shipping firms in bigger vessels.

The remarks came after reports that Taiwan's Evergreen, the world's sixth-largest container shipping firm, ordered 10 vessels with a capacity of 13,800 twenty-foot containers (TEU) each.

"Evergreen Marine decided to lease ten 13,800-TEU container ships from Korea Infrastructure Investments Asset Management Co (KIIMA). KIIMA will place newbuild orders with Hyundai Heavy," the broker said in a report.

"We expect the other shipping companies to protect their market shares, and more mega-container ship orders are likely to be given to yards like Yangzijiang from mid-2012."

Merrill has a buy rating on Yangzijiang's stock with a target price of S$2.12.

Last year, the world's largest container shipping company, Maersk Line, ordered 10 18,000 TEU ships and later exercised the option for another 10, sparking others like Singapore's Neptune Orient Lines Ltd to increase their fleet.

Yangzijiang shares were up 1.22 percent at S$1.245, outperforming the 0.5 percent rise in the broader Singapore Straits Times Index

1107 (0307 GMT)

(Reporting by Harry Suhartono in Singapore; harry.suhartono@thomsonreuters.com)

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10:52 STOCKS NEWS SINGAPORE-RHB downgrades Genting to market perform

RHB Research downgraded casino operator Genting Singapore PLC to market perform from outperform after the recent rally in its share price.

The broker also lowered its net profit forecast for the fiscal years 2012 to 2014 by 6.5 to 13 percent.

RHB said Genting, a unit of Malaysian group Genting Bhd , has a market share in Singapore of 47 percent on a gross gaming revenue (GGR) level in the fourth quarter of fiscal 2011 and of 51 percent overall for the fiscal year.

"Going forward, management expects overall GGR market share to remain around the 50 percent mark on an annual basis, as both properties continue to see volatilities in market share depending on luck factor on a quarterly basis," RHB said.

"This is in line with our projections for FY12, but slightly below our expectations for FY13-14 of 51-52 percent. As such, we have revised our market share assumptions downwards to 50 percent for FY13-14."

Earnings are likely to see a boost after the first quarter from contributions from Genting's two junket operators, new hotel rooms and stronger marketing efforts, it said.

Genting's shares were up 0.9 percent on Wednesday at S$1.71, outperforming the 0.5 percent rise in the benchmark Singapore Straits Times Index. Genting shares have risen by more than 13 percent so far this year.

1037 (0237 GMT)

(Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)

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10:01 STOCKS NEWS SINGAPORE-DMG prefers HK Exchange over SGX

DMG & Partners recommended investors switch from Singapore Exchange Ltd (SGX) to Hong Kong Exchanges and Clearing Ltd due to better long-term earnings potential of the Hong Kong bourse.

The remarks came after SGX, Asia's third-biggest listed bourse, posted a forecast-beating 16 percent rise in quarterly profit and said it sees growing interest from international companies to list in the city-state.

SGX Chief Executive Magnus Bocker recently introduced a new business structure in a bid to improve its growth prospects. He is taking direct responsibility for the listings business and overseeing the separate sales and clients unit.

"SGX trades at a price-earnings ratio close to peers such as Hong Kong Exchange, and we see better long-term earnings growth potential for Hong Kong Exchange. Hence, we recommend investors to switch from SGX to Hong Kong Exchange," DMG said in a report.

The broker has a sell recommendation on SGX stock and a target price of S$5.40.

SGX shares gained as much as 1.5 percent on Wednesday to S$6.82. They have risen by around 10 percent so far this year, underperforming the 13 percent gain in the broader Singapore benchmark index

0946 (0146 GMT)

(Reporting by Harry Suhartono in Singapore; harry.suhartono@thomsonreuters.com)

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08:39 STOCKS NEWS SINGAPORE-Index futures rise

Singapore Index Futures rose 0.91 percent early on Wednesday, indicating the benchmark Straits Times Index would open higher.

Key Asian markets are opening up after forecast-beating results by some major U.S. companies, which drove the rally in Wall Street.

0833 (0033 GMT)

(Reporting by Harry Suhartono in Singapore; harry.suhartono@thomsonreuters.com)

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