SPH BUY Target Price $4.32 by OCBC Research

 Singapore Press Holdings (SPH) recently bid S$917m for a 99-year white site beside Jurong East MRT station and came just 5.4% below the top bid. We think management is committed to expanding their retail landlord business and could be interested in three GLS sites in 2H11, or TripleOne and 313@Somerset which are likely to come onto the market. We visited Clementi Mall and found that it has opened for operations smoothly with good foot traffic. Our S$4.32 fair value indicates an upside of 13.4% against the current price of S$3.81. Also, we think the downside is limited by an attractive dividend yield of 7.1%, which is underpinned by a core newspaper segment yielding solid recurrent cash. Upgrade SPH to BUY with a fair value estimate of S$4.32.

OSIM Target Price $2.11 BUY by OCBC Research

OCBC has cut its target price for Singapore lifestyle products firm Osim International (OSIL.SI), which is best known for its massage chairs, to $2.11 from $2.34 and kept its buy rating.

OCBC Investment Research cut its target price for Osim to account for a larger share base resulting from the recent exercise of its warrants.

However, OCBC remains bullish on Osim's growth prospects as its product range should benefit from research and development efforts to boost product innovation.

"While current economic uncertainty surrounding the EU and U.S. could dampen investor sentiment, we believe that the fundamentals of Osim remain strong and ample growth opportunities exist," said OCBC in a report.
 

Golden Agri Target Price $0.96 by OCBC Research

OCBC Investment Research has raised its target price for Singapore-listed palm oil firm Golden Agri-Resources (GAGR.SI) to $0.96 from $0.88 and kept its buy rating.

OCBC said it raised its earnings forecast for Golden Agri by 22.7% for this year to reflect improving margins and after it reported strong quarterly results.

Golden Agri said on Friday its first quarter net profit rose 161% from a year earlier to US$230.7 million ($287.4 million), lifted by higher sales volumes and crude palm oil prices.

However, OCBC only raised its 2011 revenue estimate for Golden Agri by 3.3% as it lowered its expectations for crude palm oil prices in the second half of the year due to increased supplies.

Yangzijiang BUY Target Price $2.42 by OCBC

OCBC Investment Research has raised its target price on Singapore-listed Chinese shipbuilder Yangzijiang (YAZG.SI) to $2.42 from $2.36 and maintained its buy rating.

Singapore-listed Chinese shipbuilder Yangzijiang (YAZG.SI) said on Thursday its first quarter net profit rose 63% from a year ago to 954.9 million yuan ($179.9 million).

OCBC said Yangzijiang's net profit was higher than expected, boosted by better gross profit margins. The firm said about 55% of its total order book comprises high-margin vessels and it is confident about sustaining margins in 2011-2012.

Yangzijiang also confirmed that it intends to continue to invest in held-to-maturity financial products. OCBC said this is currently a lucrative business, but a sudden dip in the Chinese stock market may affect the value of the collateral.

Golden Agri BUY Target Price $0.88 by OCBC Research

OCBC Investment Research in a 13th April research report says: "Golden Agri-Resources (GAR) has provided more details on its Forest Conservation Policy (FCP). Meanwhile, in the nearer term, we note that CPO prices continue to hold up pretty well, no doubt buoyed by the rising crude oil prices, as well as lessened demand concerns following the Japan twin disaster in early March.

"And with the MENA (Middle East North Africa) region still looking slightly uncertain, we believe that it may continue to drive demand for alternative sources of fuel, especially bio-diesel. The world's second largest CPO producer Malaysia plans to implement the use of B5 bio-diesel this year; it has also allocated MYR200 million for the establishment of blending facilities. Fair value of 88 cents (17x FY11F core EPS). MAINTAIN BUY."

Keppel Land BUY Target Price $5.09 by OCBC Research

Singapore property developer Keppel Land said its first-quarter net profit rose 46% year-on-year to $92.1 million, lifted by higher contributions from property trading and its unit K-REIT Asia, as well as gains from selling its stake in Keppel Digihub.

OCBC said future earnings for Keppel Land are likely to be lumpier as the firm will have to comply with accounting standards and recognize profits on its overseas projects only on full completion.

The brokerage added that it expects slower Chinese sales this year, noting that prices remain at healthy levels of 60,000-80,000 yuan ($11,405-$15,206) per square metre for unsold units but foot traffic has dipped since the purchasing curbs.

However, OCBC said the pre-commitment levels at the firm’s Ocean Financial Center in Singapore’s office district have edged up to 82.3% from 80% in the fourth quarter, and is fairly confident of robust occupancy when it is completed.

Biosensors BUY Target Price $1.36 by OCBC IR

OCBC Investment Research in a Mar 28 research report says: "Biosensors International Group (BIG) announced that it has obtained approval in-principle from SGX for the private placement of 216,325,800 new ordinary shares to Atlantis Investment Management Hong Kong Ltd and Ever Union Capital Ltd.

"The total placement represents approximately 19.55% of BIG's issued and paid-up share capital. The dilution factor works out to be 16.4%, which seems quite substantial, in our view. Nevertheless, we are confident that management would be able to efficiently utilise the proceeds to generate value for their shareholders.

"We adjust our DCF estimates to incorporate higher growth in its mid- to long-term profitability but also tweak our USD/SGD assumptions downwards due to persistent weakness in the U.S. dollar. Fair value revised to $1.32 (previously $1.36). MAINTAIN BUY."