Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-Hi-P International rises on China investment

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STOCKS NEWS SINGAPORE-Hi-P International rises on China investment Sep 3rd 2012, 04:04 Mon Sep 3, 2012 12:04am EDT Shares of Singapore's Hi-P International Ltd gained as much as 2.8 percent after the contract manufacturer said it plans to invest around S$300 million ($240.5 million) for a project in China. On Monday Hi-P shares rose as high as S$0.93, the highest since Aug. 24. Some 1.1 million shares changed hands, 1.8 times the average full-day volume over the past 30 days. Hi-P supplies parts to companies including Apple Inc and BlackBerry maker Research in Motion Ltd. Hi-P said on Friday it will acquire land use rights at the Nantong Economic and Technological Development Area and build a new plant that is set to increase its production space by around 50 percent. The plant will focus on producing electro-mechanical components, modules assembly and products for the electronics industry, Hi-P said. "We believe Hi-P's proposed S$300 million China investment, announced last Friday, is linked to greater allocations from Apple and a testament to Hi-P's ability to offer quality components at competitive prices," CIMB Research said. The project will boost Hi-P's 2013-2014 fiscal year earnings and catalyse its stock price, CIMB said, raising its target price on Hi-P to S$1.06 from S$0.96 and maintaining its 'outperform' call. 1154 (0354 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ************************************************************ 11:27 STOCKS NEWS SINGAPORE-Banks loan growth continuing to slow-Nomura Nomura said Singapore banks' loan growth is continuing to slow from the peak in September 2011, while the loan-to-deposit ratio remained stable at 91.9 percent, the highest since 2001. The banks' second-quarter results were relatively subdued, with downward revisions for loan growth from low teens to high single digits, and for net interest margin from flat year-on-year to a decline of around 5 basis points, Nomura said. But Singapore banks still appear on track to deliver 2012 fiscal year earnings growth of 6-8 percent on the back of "undershooting credit costs and resilient fee income growth". Nomura's top pick is DBS Group Holdings due to its broad franchise momentum and overly discounted valuation to its peers. "Its Bank Danamon bid faces regulatory uncertainty but organic growth drivers are strong," Nomura said. On Monday, DBS shares were down 0.2 percent at S$14.42, United Overseas Bank rose 0.4 percent at S$19.16 and Oversea-Chinese Banking Corp edged down 0.1 percent at S$9.28. The Straits Times Index was flat. Barclays said it likes Singapore banks due to their strong liquidity positions, proven risk management record and best capitalisation among the Asia ex-Japan banks it covers. "The Singapore banks can continue leverage their balance sheet strength and win loan market share," Barclays said. It prefers UOB to OCBC and DBS. 1106 (0306 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ************************************************************ 10:19 STOCKS NEWS SINGAPORE-Retail, industrial REITs most resilient - Maybank Maybank Kim Eng said funds are not likely to switch out of Singapore real estate investment trusts (S-REITs) as there are not many investable alternatives in the market, and within this space retail and industrial REITs are the most resilient. There are a total of 25 S-REITs spanning the office, retail, healthcare, hospitality, industrial and residential sub-sectors. Examples are CapitaCommercial Trust, CapitaRetail China Trust, Ascott Residence Trust and Ascendas REIT. Maybank, which met 17 Hong Kong-based fund houses recently, said most clients view S-REITs positively as they have one of the highest yield spreads among their peers, outperforming even major REITs markets such as the United States, Australia and Japan. S-REITs were currently trading at a 2012 fiscal year yield of 6.1 percent and a yield spread of 462 basis points (bps), Maybank said, adding that many funds believe there is headroom for another 80-90 bps compression. Retail and industrial REITs appear to be the most resilient partly because retailers hold inventory and there are steady income streams backed by shopping for necessities, while industrial REITs are characterised by long lease tenures with rental escalation every year, Maybank said. 1010 (0210 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ($1 = 1.2474 Singapore dollars) Link this Share this Digg this Email Reprints

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