Singapore
Wired Daily
Page 2
Biosensors for use of BioMatrix technology - 1) in markets
outside Japan; and 2) in the Japanese market. The first
licensing agreement was set to expire this year, while the
Japan market agreement is due to expire in 2016. The new
extension has similar terms to that of the original agreement
entered into in 2003. This renewal is within our expectation
and we view the partnership as mutual. No change to our
earnings estimates; maintain BUY and TP S$1.57.
CSE Global has secured an order to engineer, procure and
construct a Telecommunications Systems for a LNG Onshore
Facility in Darwin, Australia. This order is one of a number of
large orders that CSE have been tracking over recent months.
The group has also recently been awarded two Mental
Health projects in the UK. Total value of these projects is
approximately S$33m. These projects will have a positive
impact on CSE's profit for the 2012 and 2013 financial years.
Metro Holdings has acquired a mixed development site in the
new central business district area of Nanchang, Jiangxi
province, China, for S$375m, together with Hong Konglisted
Chinese property developer Top Spring International.
The 269,454 sq m leasehold land parcel in Honggutan New
District has a plot ratio gross floor area of 795,000 sq m.
Metro and Top Spring plan to develop a large, upscale urban
mixed development - including commercial, office, residential
and entertainment components - on the plot.
URA released 3Q12 residential property price flash estimate
that showed a 0.5% q-o-q increase. The strongest showing
was in the Outside Central Region (OCR) which saw prices
ticking up 1% q-o-q while those in the Rest of Central
Region (RCR) showed a 0.7% sequential improvement. Prices
in the Core Central Region were the weakest with a 0.2%
expansion. Cumulative price improvement for the 9M YTD is
a positive 0.8%. HDB resale prices rose 2% q-o-q, bringing
9M increase to 3.9%. We expect policymakers to remain
watchful amid the low interest rate environment and the
new supply coming onstream, which will likely cap significant
upside in property prices. Our current expectations are for
prices to trickle down modestly by 5% pa over the next
couple of years.
In property news, Villa Des Flores, a freehold development
sitting along Whitley Road, is being re-launched for collective
sale by tender with its asking price of $165m, unchanged
from its previous launch in June. The cost of the 104,370 sq
ft site for landed housing works out to a land price of $1,581
psf. No development charge is payable.
IATA has raised profit outlook for world's airlines. It now
expects the airline industry to make a net profit of US$4.1 bn
this year, up from an earlier forecast of US$3 bn but still less
than half the US$8.4 bn achieved in 2011. IATA also said in
its first forecast for 2013 that industry profits will rise further
next year to US$7.5 bn, helped by passenger traffic
expansion of 4.5% and cargo expansion of 2.4% as global
economic growth quickens to 2.5% from an expected 2.1%
this year. Profit margins will remain razor-thin at 1.1% in
2013 versus an expected 0.6% in 2012.
China's official manufacturing Purchasing Managers' Index
improved slightly to 49.8 in September from 49.2 in August,
but still languishing below the key 50-point level. A sub-index
for new orders crept back towards the 50-mark, hitting 49.8,
its highest point since May, while the output sub-index also
strengthened to 51.3.
US stocks rose after the ISM manufacturing index for
September returned to expansion territory of 51.5, better
than consensus estimates for a 49.7 reading. Sentiment was
also lifted after FED Chairman Ben Bernanke renewed a
pledge to sustain record stimulus even after the U.S.
expansion gains strength. This is a good start to the data
heavy weak that culminates with the September job
numbers. Consensus calls for non-farm payrolls to improve to
115k from 96k while the unemployment rate is seen inching
a notch higher to 8.2% from 8.1%.China’s September PMI
also improved to 49.8 from 49.2 the previous month but still
remained at slightly below expansion territory.