Barclays said it prefers oil and gas services firm Ezra
Holdings and Keppel Corp going into the next
results season as it sees earnings growth and potential
catalysts such as possible financing resolutions for Ezra and
further contract wins for Keppel.
Ezra is expected to deliver the highest year-on-year
earnings growth in the April-June period out of the oil services
and rig builders Barclays covers due to an increase in activity
in its subsea business and utilisation of its offshore support
segment, it said.
Barclays estimates Ezra's earnings per share in the third
quarter to jump 196 percent from a year ago, compared to
Keppel's 9 percent rise and Sembcorp Marine's 4
percent gain.
"The key focus of the upcoming results will likely be on the
operating margins...Ezra is expected to deliver sequentially
better margins, the Singapore rig-builders are also expected to
at least maintain their operating margins," said Barclays.
It has an 'overweight' rating on Ezra with a target price of
S$1.70.
Barclays said the recent pullback in Keppel and Sembcorp
Marine shares are an attractive entry point for investors. It
rates Keppel at 'equal weight' with a target price of S$13.30,
and Sembcorp Marine at 'overweight' with S$7.00 target price.
1236 (0436 GMT)
(Reporting by Charmian Kok in Singapore;
charmian.kok@thomsonreuters.com)
************************************************************
DBS Vickers downgraded vegetable processing firm China
Minzhong Food Corp Ltd to 'hold' from 'buy' and cut
its target price to S$0.60 from S$1.45, citing cost challenges,
lower margins outlook and muted growth prospects.
By 0215 GMT, China Minzhong shares were 1.6 percent lower at
S$0.60 and have fallen about 26 percent so far this year,
compard to the FT ST China Index's 2.4 percent rise.
"The slower-than-expected flushing out of crops due to the
winter delay in FY12 and persistently higher costs are likely to
depress margins going forward," said DBS in a report.
It also noted that China Minzhong is now more focused on
expanding industrial farmland instead of agricultural farmland,
which means slower earnings growth as margins for processing
vegetables are much lower than for cultivating vegetables, said
DBS.
The brokerage said it expects China Minzhong's gross margins
to decline to 35.3 percent in 2014 from 38 percent this year.
1019 (0219 GMT)
(Reporting by Charmian Kok in Singapore;
charmian.kok@thomsonreuters.com)
************************************************************
9:41 STOCKS NEWS SINGAPORE-IHH listing benefits ASEAN
healthcare stocks-CIMB
IHH Healthcare's planned $2 billion listing in Malaysia and
Singapore - the third largest initial public offering of the
year globally - has brought interest back into healthcare stocks
in Southeast Asia such as Singapore's Raffles Medical Group Ltd
, CIMB said in a report.
Shares of Raffles Medical were up 0.9 percent at S$2.36, and
have gained 11 percent so far this year, compared to the Thomson
Reuters Asia Pacific and Russia Healthcare Index's
5.6 percent rise.
"Recent news flow pertaining to the dual listing of
healthcare giant IHH Healthcare in Malaysia and Singapore has
certainly brought interest back," said CIMB, adding
company-specific news also helped.
Raffles Medical will benefit from hospital bed shortage in
Singapore, which has a lower bed ratio lower than other
developed countries at 2.22 beds per 1,000 people in 2010, CIMB
said. It has an 'outperform' rating on the stock with a target
price of S$2.69.
"With capacity constraints in public and other private
hospitals, patient loads at Raffles Medical's flagship Raffles
Hospital have been good," the brokerage said.
Raffles Medical is adding capacity at Raffles Hospital by
increasing clinical services and specialist offerings, at a time
when healthcare costs are rising.
Other healthcare stocks in the region include Thailand's
Bumrungrad Hospital, which has surged 71 percent this
year, and Malaysia's KPJ Healthcare, up 35 percent
this year.
To read a related story, click
(Reporting by Charmian Kok in Singapore;
charmian.kok@thomsonreuters.com)
Source: http://news.yahoo.com/stocks-news-singapore-barclays-favours-ezra-keppel-next-044633422--sector.html
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