Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-DMG starts Nam Cheong with 'buy'; target S$0.29

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STOCKS NEWS SINGAPORE-DMG starts Nam Cheong with 'buy'; target S$0.29 Aug 28th 2012, 02:46 Mon Aug 27, 2012 10:46pm EDT DMG & Partners Securities initiated coverage of Singapore-listed Malaysian offshore vessel builder Nam Cheong Ltd with a 'buy' rating and a target price of S$0.29. Nam Cheong shares rose as much as 2.5 percent to S$0.205 on Tuesday. The stock has surged around 58 percent so far this year, versus the 17 percent gain in the FT ST Small Cap Index . Nam Cheong is the dominant offshore support vessel builder in Malaysia with a market share of 75 percent last year, DMG said, adding it expects the company's net profit to double over the next two years on the back of strong vessel sales. The broker said Nam Cheong offers a short time to delivery because of its build-to-stock model and the company is set to benefit from the higher capital expenditure of Malaysia's state-owned oil and gas company Petronas. Petronas has budgeted 300 billion ringgit ($96.5 billion) for capex over the next five years, an increase of 80 percent over the previous five, in response to its falling oil production, DMG said. "This provides a massive stimulus package to the entire Malaysian oil and gas industry." 1040 (0240 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) *********************************************************** 10:12 STOCKS NEWS SINGAPORE-Raffles Education at 8-year low after rights issue plan Shares of Raffles Education Corp Ltd fell to an eight-year low after the Singapore education services provider announced a rights issue plan and a net loss of S$59.3 million ($47.4 million) for the financial year ended June. Raffles shares fell as much as 8.1 percent to S$0.34, the lowest since August 2004. More than 2 million shares changed hands, 2.2 times the average full-day volume over the past 30 days. "There is some concern about dilution because of the rights issue, and their main business seems to be facing a lot of difficulties," said a trader. Raffles said late on Monday it plans to issue up to 170.9 million rights shares at S$0.14 each, on the basis of one rights share for every five existing shares held by certain shareholders. The company also announced last week that it swung to a net loss of S$59.3 million for its 2012 fiscal year from a net profit of S$13.2 million a year earlier. Raffles expects its business in China to continue being affected by challenging operational conditions in the country. Its operations in Vietnam had also been suspended, the company said. 1004 (0204 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ($1 = 1.2517 Singapore dollars) ($1 = 3.1095 Malaysian ringgits) Link this Share this Digg this Email Reprints

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