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STOCKS NEWS SINGAPORE-CIMB eyes dividend with StarHub's bond issue
September 5, 2012 / 5:20 AM / 5 years ago

STOCKS NEWS SINGAPORE-CIMB eyes dividend with StarHub's bond issue

CIMB Research said Singapore telecommunication firm StarHub Ltd’s planned S$220 million ($176.4 million) bond issue is a potential step towards a special dividend or an increase in dividend payout.

StarHub shares were up 1.1 percent at S$3.69 on Wednesday. The stock has increased 27 percent so far this year versus the 13 percent gain in the broader Straits Times Index.

CIMB said the bond issuance will be useful for StarHub given the impending spectrum action, probably in the first half of 2013.

StarHub’s existing dividend yield of 5.6 percent is already one of the highest among its regional peers, CIMB said, adding that the company’s dividend per share could rise to 22 Singapore cents in 2013 fiscal year, implying an even more “impressive” yield of 6.6 percent.

CIMB maintained its ‘outperform’ rating and S$3.90 target price on StarHub stock.

1306 (0506 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com)

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12:40 STOCKS NEWS SINGAPORE-OCBC initiates Yoma with ‘buy’ rating

OCBC Investment Research initiated coverage of Yoma Strategic Holdings Ltd, a Singapore-listed property developer in Myanmar, with a ‘buy’ rating and a S$0.45 target price.

Yoma shares were up 1.3 percent at S$0.38 on Wednesday. The stock has more than doubled so far this year, versus a 16.5 percent gain in the FT ST Small Cap Index.

OCBC said Yoma is the only publicly listed company in the world today providing almost pure exposure to Myanmar with an average daily liquidity over $5 million.

“The Myanmar economy is a key driver of Yoma’s business outlook and, given the political will shown by President Thein Sein so far, we believe the process of economic liberalization will likely be meaningful and sustainable,” OCBC said.

Yoma is also an affiliate of the SPA group, an established conglomerate in Myanmar with a track record of acquiring and developing large residential projects, OCBC said.

This gives Yoma a strong competitive edge and a first mover advantage in the Myanmar real estate sector, OCBC noted, adding that Yoma is able to access capital markets and acquire attractive assets from SPA.

1229 (0429 GMT)

(Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com)

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11:42 STOCKS NEWS SINGAPORE-Smaller offshore firms attractive - Maybank

Maybank Kim Eng said robust activities in rig-building would filter down the value chain and it is time to start looking at the smaller offshore support services companies, many of which are trading at single-digit price-earnings ratios.

Maybank’s top pick is Ezion Holdings Ltd due to the company’s expected earnings per share compound annual growth rate of 36 percent over the next three years.

In the offshore construction space, Ezra Holdings Ltd and Swiber Holdings Ltd have accumulated strong order books, Maybank said.

The broker also highlighted module fabricators like Dyna-Mac Holdings Ltd and Technics Oil and Gas Ltd, as well as offshore support vessel builders and charterers who may be potential beneficiaries.

1132 (0332 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ($1 = 1.2475 Singapore dollars)

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