Company update Sep 22

For the past week, stocks under my radar released some news. Here are some analysts' view on them. Generally, the companies are on track for future growth, and we should stay vested.

Due to Rotary venturing into LNG in China. OCBC research is upgrading the fair value.

Upped fair value. We are optimistic of Rotary's pursuit in the LNG business in China. As the first transportation route will only be operational from November, we do not expect this to have much impact on its FY07 results. However, we expect this business to contribute 9% to our FY08 estimates. We are keeping our forecasts of S$46.7m in FY07, but revising up FY08 to S$54.5m. Based on 18x PER FY07/08 blended earnings, we are raising our fair value estimate to S$1.60. Maintain BUY.

DBS has reiterated a buy on Swiber citing

Revenue visibility for Swiber is high. Our offshore EPCIC revenue projection in FY07 is now fully backed by orders on hand, as compared to 94% previously. Our FY08 offshore EPCIC revenue projection is 30% backed by secured orders. Swiber’s orderbook now stands at US$230.7m.

Kim Eng initiated coverage on Orchard Parade Holding with a Buy

We think that OPH offers a rare dual exposure to hospitality and F&B. With
tourism in Singapore set to grow further and YHS being a household brand
name, we think that OPH is an enticing value proposition. We are initiating
coverage with a price target of $3.31, based on parity to RNAV.

CIMB-GK reviewed again the call on FJ Benjamin

Maintain Outperform. Following our earnings adjustments, we have lowered our
target price from S$1.29 to S$1.17, still based on sum-of-the-parts valuation. Our
new target continues to value its retail/entertainment business at 16x CY08 P/E and
takes into account potential capital distribution from the sale of investment
properties and warrant conversion.

DMG maintains the view on FJ Benjamin

FJB announced the listing of its associate, St. James Power Station through a reverse
takeover. The RTO is targeted for completion by 1Q 2008. FJB’s 30.4% stake is valued
between S$24.3m – S$32.8m, depending on the financial performance of St. James. Post
listing, FJB’s stake will be reduced to 25.2% with potential for further dilution upon a
subsequent placement. Maintain BUY with price target of S$1.03.

I always believe if you buy a good company and hold for long term, you would be rewarded.