We remain positive on HG Metal's near-term prospects as we believe it
will benefit from a combination of rising
steel prices, robust construction and marine and offshore sectors in
Singapore, and a weaker US$. We have kept our
FY08-10 EPS forecasts unchanged for the time being in view of the
volatility of steel prices. However, we believe
there could be upside surprises to our FY08 numbers if steel prices
stay at current levels in 2HFY08. We have rolled
over our target P/E from CY08 to CY09, using 8x instead of 9x to factor
in compressions in the market P/E. However,
our target price remains relatively unchanged at S$0.61. Maintain
Outperform, given the potential upside to our
numbers from any higher-than-expected ASPs.
Quick Takes
* CapitaCommercial Trust (S$2.11) - One George Street on the
cards
* STX Pan Ocean (S$2.86) - 1Q guidance substantially ahead of
expectations
* StarHub (S$3.07) - Wins additional 2G spectrum rights
News of the Day
* US GDP up a feeble 0.6% in Q4
* Private bank RBS Coutts looks to expand in Singapore
* $484m gain in value of A-Reit properties
* KSE bags US$130m charter deal
* Templeton wants 24% more for AsiaPharm
* FCT to buy $480m malls from parent
* Ezra inks US$77.6m worth of charter deals
Technical Trading Ideas
* Celestial NutriFoods
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