Olam BUY Target Price $3.38 by Kim Eng Research

Olam announced earlier this month that it was raising $740 million through a placement of new shares with an eye on future acquisitions.

Kim Eng said it views the equity-raising exercise negatively because of the high discount offered, which could be dilutive to minority shareholders.

However, the brokerage said the share price correction was overdone and it sees a good entry opportunity. Olam management is likely to have identified attractive investment targets and is building up a huge warchest, Kim Eng said.

Capitaland BUY Target Price $4.14 by Kim Eng Research

Kim Eng Research in a June 3 research report says: "A consortium comprising CapitaMalls Asia (CMA), CapitaMall Trust (CMT) and CapitaLand has secured a White Site at Boon Lay Way for $969 million, or $1,012 psf ppr.

"CapitaLand will lend its expertise on the office component while CMA will lead the design for the retail portion. With this acquisition, the CapitaLand group of companies will have a strong foothold in Jurong Gateway, right in the commercial heart of the Jurong Lake District.

"While the targeted 6% yield on cost for the JG site is attractive, the actual impact on CapitaLand's RNAV is minimal. The asset, when completed, is likely to be eventually monetised and sold to CMT and CCT. We have trimmed our target price to $4.14, pegged at par to RNAV after adjusting for the share prices of the listed subsidiaries. MAINTAIN BUY."

Bangkok Bank Target Price THB187 Kim Eng Research

Bangkok Bank's quarterly loan growth 14% year-on-year and 4% quarter-on-quarter was supported by demand for working capital loans and retail loans. Starting in 1Q, the banking sector is now booking dividend income as other income and fees and non-interest income net of expenses. Target price is THB187 which is based on a P/BV of 1.43 times FY2001F ending 31 Dec.