numismatics

Rare coins, gold and silver if this is your cup of tea as a numismatics then you should engage Monaco Rare Coin. This is the company is part of the Monex family of companies, a trusted leader in precious metals investments for nearly 40 years. The Monex companies have helped tens of thousands of investors invest over $25 billion in hard asset investments including rare coins . . . gold, silver and platinum bullion and bullion coins . . . as well as other precious metals investments. Monaco Rare Coin offers a unique, vast and impressive array of resources for investors and collectors alike. Monaco also brings both buyer and seller to the market for them to trade. There is a vibrant trade for rare coins in the market. And alot of people are taking advantage of this to trade with each other, this also gurantees a form of dealing which is more open.

More weakness

U.S. stocks are poised for more weakness next week, after a slide in the Nasdaq wiped out hopes that technology shares could pull the market out of the subprime pain felt by financial institutions on Wall Street. "Tech had been the big winner since the August sell-off," said Paul Nolte, director of investments at Hinsdale Associates. "In any type of correction, you're likely to take money out of where you've done well." Stocks experienced another slide on Friday, with the Dow Jones Industrial Average (DJI) finishing off 223 points at 13,042, capping a week of pain that shaved 4.1% from the blue chip index. "We've had a confluence of worries about the dollar, energy prices and subprime problems that's really got investors nervous and they don't want to be hanging around the equity market," said Nolte. Hit by continued weakness among financial stocks, the broad S&P 500 index ( SPX) lost 21 points to 1,453, adding up to a 3.7% drop on the week. Yet most of the bleeding was seen in the tech-heavy Nasdaq Composite (RIXF) , which fell 2.5% to 2,627 on Friday. For the week, the Nasdaq shed a breathtaking 6.5%. Retail highlights week Next week, the market will turn to the September pending home sales index on Tuesday, October retail sales on Wednesday, and regional manufacturing surveys for November on Thursday, for the latest snapshot on the ailing U.S. economy. "The business surveys will help us figure out who's getting really hurt by the whole housing collapse and who's benefiting from a weak dollar and overseas growth," said Sal Guatieri, senior economist at BMO Capital Markets. Helping take the pulse of U.S. and global consumers, Wal-Mart Stores (WMT) and Home Depot Inc. (HD) will also report earnings on Tuesday, followed by JC Penney (JCP) on Thursday. Bad economic data may lift market odds that the Federal Reserve will continue lowering interest rates, although Fed chief Ben Bernanke's uncertainty last week in testimony to Congress left some investors concerned. "Back in August, we had the whole financial crisis leading up to the Fed cutting rates and then we were off to the races," said Hinsdale's Nolte. "Now we need another event like that" if the market is going to pull itself up, he said. Inflation data -- the October producer price index on Wednesday and the consumer price index on Thursday -- might hold back hopes about further rate cuts.

NASDAQ

HOW QUICKLY THE mighty techs have fallen. The Nasdaq had been enjoying an incomparable run in 2007, rising more than 18% to a peak of 2859 on Halloween. Through a turbulent year the tech-heavy composite index was beating the Dow Jones Industrial Average by nearly seven percentage points and the broader market by more than nine. Subprime landmines and $100 oil be damned; life in the tech sector was good. So it's something of a shock that investors who were giving thanks for techs would find November to be so frightening. The Nasdaq has plunged 8% this month, most of that coming just this week. All equity markets are in a bad way right now, but the tech index is getting hammered significantly harder than the Dow or the S&P 500, leaving investors to sort out whether the Nasdaq is just oversold or, more dreaded, that the flight to tech is over. First, a word on how we got to this point so rapidly. The cow that kicked over the lantern in the barn was Cisco Systems (CSCO: 28.58, -1.05, -3.54%). It all started with the company's first-quarter earnings report after the markets closed Wednesday. "Although they had an in-line report, they didn't do better than expected, so that was a disappointment," says Art Hogan, chief market economist at Jefferies & Co. "And even more disappointing was the revenue guidance. So [Thursday] and [Friday] we're really feeling the spillover effect of 'Wow, if it's bad for Cisco, it's bad for a lot of people.'

wedding cameras

Would you believe it my cousin is getting married. Although the wedding is at the end of the year, he has asked me to help him in some of the wedding planning. I am all excited, this is my first wedding planning or is it planning wedding. Whatever!! I spoken to him and have asked him to budget for his wedding. So that we could decide if it is going to be a lavish hotel reception or an intimate garden affair. The next hurdle is who is going to pay for the wedding. Traditionally, it is the brides’ families that pick up the tab for the wedding but that has all changed and more and more grooms’ families are getting involved in the payment. The next stick issue is how you raise the subject of the wedding expenses. I believe the best way is for the couple to speak to the parents separately. In order not to have a miss understanding later it is best that the couples can get their parents to commit to a specific amount of money. The other option may be if they could ask their parents to commit their finances to a certain part of the wedding like the ceremony, catering or honeymoon. I told my cousin that he should also work out a figure that both of them can contribute to the wedding. Now comes the serious part of the planning and that is to do the budget for the wedding. As a rough guide the cost for a 150 wedding guest is $25,000 and this may be higher depending on location (higher in urban area). Next is to work out a percentage of the budget to be allocated for the various items. I have worked out a breakdown as such (I do hope my cousin will approve it), Reception: 48%-50% Ceremony: 2%-3% Attire: 8%-10% Flowers: 8%-10% Entertainment/Music: 8%-10% Photography/Videography: 10%-12% Stationery: 2%-3% Wedding Rings: 2%-3% Parking/Transportation: 2%-3% Gifts: 2%-3% Miscellaneous: 8%. I also planned for a contingency fund of 5% from the budget. This is for the unplanned expenses. Now what have I not included. Oh Yes, the honeymoon, must budget that also. Something else that is critical but must not be forgotten and that is to get a good wedding cameras. as we do not want to miss out of getting the perfect wedding pictures. I am glad that my cousin has been setting aside about 20% of his income for the last 2 years just for the wedding. That cousin of mine has a whole list of how to reduce his expenses just to achieve that 20% savings. What he has been doing is that he has cut down on coffee from two cups to one only a day, buying songs through the internet instead of buying CDs. All this hardship over the last two years is worth it, now that he has extra cash to cover part of the wedding expenses. It was also smart of his to use this savings to open a money-market account and he also bought CDs. I am sure it is going to be a great wedding because we were prepared and have commence our wedding planning early.

Hi-P

Drop in 3Q07earnings despite strong sales Hi-P reported 98% qoq decline in net profit to S$0.3m in 3Q07 despite strong 30% qoq growth in revenues. 3Q07 is profitable but net profit dropped significantly. The fall in earning is mainly dragged down by a) provision of S$11.1m (S$7.8m for FY07, S$3.3m for FY06) for inventory obsolescence with several customers in Wireless Telecommunications (WL), Consumer Electronics and Electrical (CE) and Computing business units, and b) a mainly VAT related one-off recognition of costs (S$7.0m). Stripping out the one-time loss of S$18.1m in 3Q07, net profit would have risen 40% qoq to S$18.4m. (2Q07: 13m). The performance also suffer from c) a continued losses at Poland of S$7.8m due to production yield issues and higher-than-expected operating costs, and d) a S$3.2m forex conversion loss due to the weakening US dollar. Segment sales recovers. Sales of S$262.3m came in above our forecast of S$214m. WL (53.9% of sales) business was up 45.1% qoq to S$141.5m, mainly driven by MOT’s gradually recovery and contribution from Nokia in 3Q07. Sales of CE (38.5% of sales) rose 14% qoq, thanks to the rising revenue contribution from Poland. Computing, Automotive, Medical and Others (CA: 7.6% of sales) business also increased 29.9% qoq to S$20m on the back of existing customers rebounded. The cash cycle days improved to 46 days with shorten in inventory from 83 to 60 days, and the company expects cash cycle days can achieve 35 days in the future. 4Q07 revenue to be similar, or slightly higher than 3Q07. Hi-P expects 4Q07 sales to be similar to 3Q07’s with a higher net profit. The full year 2007, the company expects higher revenue but lower profit compared with 2006. This is mainly due to a) teething problem in Poland takes longer time to resolve, and b) MOT is gradually recovery, would move into mass production by 2008. We reduce our FY07 forecast 30% to 45.2m. Teething problem in Poland. Hi-P secured strong orders from Braun including orders to manufacture a series of kitchenware products, but the teething problem may take longer time to resolve. The company expects Poland plant to breakeven by Q2 FY08 with a) better yield through put, b) improvement of staff experience/efficiency with training programme, and c) rising price. We believe start-up losses could reduce 60%-70% in 4Q07. New Strategy, a Integrated Electro-Mechanics Solution Provider. Instead of taking profits from just satisfactions customers’ requirements (e.g. mobile phone casing), the company decided to move beyond to be complete solutions provider in market segments. This will help customers reduce time-market as they deal with only one supplier offering a one-stop solution for electro-mechanics assemblies. Hi-P will enhance its capabilities by more focused with formation of new corporate roles e.g. R&D. Production for Nokia (low cost phone, N series etc.) is still a small position, it could increase to 10% of total sales in 2008.

Banking

No major surprises from the banks. DBS kicked off the season with 3Q07 net earnings of S$610m, up 11% YoY, and slightly above market estimate of S$600m as polled by Bloomberg. UOB followed with net earnings of S$501, up 8% YoY, and slightly above market expectation of S$480m. OCBC posted net profits of S$463m, up 22% YoY, and slightly below market estimate of S$477m. Overall, 3Q results from the local banks contained no major surprises as earnings were fairly in line with market expectation. Strong fee-related income. On the whole, all three banks posted earnings that were slightly better than expectations. In total, the three banks delivered total earnings of S$1,574m in 3Q07, up 13% YoY. Several key operations stood out, especially the strong double-digit increase in Fee & Commission Income enjoyed by all three banks (ranging from 36% to 45%). This came from several fee-related operations such as stockbroking, investment banking, fund management, wealth management, loans and trade related activities. CDO exposure. Together with the results, there were further updates on the three banks' CDO portfolios. All three made allowances for their CDO portfolios, but with the present credit woes, more could be in store for 4Q07. With this uncertainty, this could cap the performances of the local banks in the months ahead. UOB made additional allowances of S$20m in 3Q07, DBS has set aside S$70m and OCBC S$221m for their ABS CDO portfolios. Lowering FY07 estimates, but UOB & DBS remain as BUY. While shortterm selling pressure for US banks could continue to exert pressure on Singapore banks, we believe that medium to longer term prospects for the local banks remain good as regional economies continue to do well, with developing Asia expected to grow 9.8% in 2007 and 8.8% in 2008, according to IMF. In addition, the local banking is still robust with healthy loans numbers due to strong property sales and construction boom. However, with the 3Q results, and taking into consideration the likelihood of further provisions, we have revised down our FY07 earnings estimates for UOB and DBS. We have marked down earnings for DBS from S$2461m to S$2392m and for UOB from S$2,227m to S$2,112m. However, despite these adjustments, we are retaining our BUY ratings for both stocks and our fair value estimates are S$25.40 and S$23.30 for DBS and UOB,

Mailing Lists

ResponseCom™ is a potent, proprietary blend of U.S. Response and U.S Consumer databases, resulting in a multi-dimensional database that offers extreme versatility and over 100 demographic and psychographic selects. The special synthesis of compiled and response data has created an unparalleled, powerful database that accurately identifies prospects with the most active, responsive, and impulsive buying history.“ResponseCom™ is the brain child of Martin Worldwide one of the leaders in the Mailing Lists business, which offers the clients with the innovation in the mailing list products. This innovation was not an overnight bright spark but it was developed over decades of tracking, compiling, and optimizing data merged into one vast database of proven direct mail responders. It was done with blood and sweat all with the clientsneeds in mind. Martin Worldwide possesses a database of over 290 million consumers and 14 million U.S. businesses.

Tai Sin Electric Cables

Tai Sin is poised to benefit from the construction boom in Singapore in thenext few years. The Building & Construction Authority (BCA) estimatesconstruction demand for 2007 at S$19bn-22bn, attributed to the rise inresidential and commercial demand due to the current property boom. Moreoffice space and hotels are also expected to be developed to meet marketdemand. Going forward, Tai Sin is expected to grow revenue and pretax atCAGR of 11.1% and 15.8% respectively for FY07 to FY2010. We believe Tai Sincan trade up to 9x FY08 P/E. This translates into fair value of S$0.635, offeringupside potential of 41% from the current price. We recommend a Trading Buy.Leading electric cable producer in Singapore. Incorporated in 1980 and listed on theSGX in 1998, Tai Sin’s main business is in manufacturing of electric cables. It iscurrently the second largest producer (total six domestic players) in Singapore, withabout 20-30% market share. It has two main business units :-1. Manufacturing - This cluster comprises mainly its leading electric wires and cablesmanufacturing activities in Singapore and Malaysia. It has recently set up a new plantin Vietnam, which commenced operation in September 07.• Its factory in Singapore produces about 600mt of cables per month and runs atutilisation rate of about 80%. By end of 07, production should be increased to1,000mt per month, with the addition of a new production line. In Malaysia,production is about 400mt per month at utilisation rate of about 60% while itsVietnam plant can produce about 100mt per month. It is a deliberate measure to runat less than full capacity in order to be able to take on urgent projects. Apart fromthis core activity, this cluster is also involved in lamp manufacturing and assembly ofswitchboards.2. Distribution – This unit operates a highly successful distribution network distributingelectrical and control products, devices and accessories and solutions to a wide rangeof local and regional industries. Its strength lies in its ability to source for specificitems based on customers’ requirements.�� Leveraging on construction boom. Singapore’s construction industry is recoveringstrongly after a decade of being in the doldrums. The Building & ConstructionAuthority (BCA) estimates construction demand for 2007 at S$19bn-22bn, attributedto the rise in residential and commercial demand due to the current property boom.More office space and hotels are also expected to be developed to meet marketdemand. This bodes well for Tai Sin as wires and cables are needed for these projects.�� Expanding into developing markets. Tai Sin has recently completed Phase 1 of itsmanufacturing plant in Vietnam. It has also established a Dubai branch office in 2006to expand its presence in the Middle East. By expanding overseas, Tai Sin is able todiversify risk from the cyclical nature of the construction industry in Singapore.�� Strong growth since 2003. Tai Sin has been consistently reporting strong growthsince 2003, before the construction sector started to pick up. Revenue CAGR overFY03 to FY07 was 43.5% while pretax CAGR during the same period was 89.9%.Going forward, Tai Sin is expected to grow at revenue and pretax CAGR of 11.1%and 15.8% respectively for FY07 to FY2010.

Jadason Enterprise Ltd

Stronger 3Q07 earnings. Jadason Enterprises Ltd is poised to makefurther progress in its earnings recovery in 4Q07, based on the updatefrom management. As a recap, Jadason recently posted a 31.8% YoY and48.8% QoQ fall in 3Q07 revenue to S$34.0m, hit by sharp decrease (down54.0% YoY and 67.9% QoQ) in equipment sales to S$16.7m. However,net profit jumped 34.1% YoY and 41.9% QoQ to S4.5m, mainly due to tworeasons. The first was a S$1.0m forex gain in the quarter, versus S$0.2mgain in 3Q06 and S$0.3m loss in 2Q07. The second and more importantreason was due to the strong demand for its PCB drilling and masslamination services, as the higher margin business grew 28.3% YoY and20.7% QoQ in 3Q07. This boosted its overall gross margin to 29.4%, from17.3% in 3Q06 and 14.1% in 2Q07, and net margin to 13.2%, versus 6.7%and 4.8%, respectively. For 9M07, revenue was down 17.3% at S$148.6m,while net profit fell 23.5% to S$10.0m.Earnings recovery to continue. Going forward, management expectsthe earnings recovery to continue, boosted by the still-strong demand forits PCB drilling and PCB mass lamination business; we understand thatthe facilities have been running at above 90% utilization rate, aided by thebuoyant mobile phone market in China as well as the booming consumerelectronics market. Management added that this would be on an increasedcapacity of 220 drilling machines, versus 140 last year, and that the productmix has also improved. Likewise, its equipment and supplies segmentbusiness has picked up and Jadason is now sitting on a healthy orderbacklog of US$50-60m, which it expects to deliver most of it in 4Q07. Assuch, management is looking towards a much better performance in thelast quarter.3G uncertainty remains biggest worry. Management also reassured usthat its forex exposure is only limited to its bank loans denominated inboth HK$ and US$; sales and cost of sales are denominated in RMB.However, the biggest worry would be the uncertainty over the award of 3Glicenses in China, where further delays could affect the order visibility. Atcurrent price, Jadason trades at an inexpensive 6.1x historical PER, ascompared to its peers (See Table 1). We do not have a rating on the stock.

Toshiba 65 include LCD

It is time to get rid of you old TV and make space for the flat screen or is it get rid of the space and make less space for your flat screen TV. Yes there are HD capable TV but the latest is Full HD TV. The Full High Definition TV is here, what with a $15.6 billion market for HDTV, now almost all TV manufacturers are producing them HDTV tha's it. One easy way to buy your TV is on the web and you should check out Krillion for Local Product, Location, Pricing. Check out the latest in HDTV the Toshiba 65 include LCD. HDTV prices has bee falling as more and more of them are being produced. Buying online through Krillion.com is a breeze. All the information you want is at your finger tip, no pesty saleman to bother you, you have all the time in the world to make that comparision and you get a comprehensive product, pricing and location information helps buyers find the exact TV they want at the retailers nearest them, bridging the last mile between a buyer’s online research and offline purchase. All this at your disposal.

CHT holding issued a profit warning

CHT (holdings) has issued a profit warning on last night, expecting 3Q2007 to be adversely affected by the reduction in the rate of value added tax export refund, appreciation of the Renminbi against the United States Dollars in 3Q2007 and rising costs. In our previous note, we had expected 5% lower profit in FY07 than FY06, considering the negative impact like from VAT and appreciation of RMB. The company will announce 3Q2007 results in the second week of November 2007. We are considering downgrading the company and will issue a note on it after the 3Q results for more visability.

VENTURE CORPORATION

3QFY07: Creating value for sustainable margins Venture reported net profit of S$76.3m (+29.4% yoy) on sales of $935.9m (+17.1% yoy). The results were slightly better than our net profit forecast of S$74.4m. Venture incurred marked-to-market adjustment of S$6.9m for investments in collateralised debt obligations (CDOs). This was offset by writeback of tax provision of S$6.7m as the company has extended its pioneer status for production facilities in Singapore and Johor, Malaysia. Top line affected by inventory adjustment. Revenue grew 17.7% yoy but contracted 6.8% qoq. There was significant impact from one-time rationalisation of channel inventory by a major customer during 3Q07. This has led to a 20.3% qoq decrease in revenue contribution from Printing & Imaging segment to S$237m. Revenue contribution from Retail Store Solutions/ Industrial Products was relatively unchanged at S$228.3m. Top line growth was affected by significant decline of the US$, which weakened from 1.5303 in Jun 07 to 1.4852 in Sep 07 against S$. Creating value for sustainable margins. EBITDA margin expanded from 19.2% in 3Q06 to 21.5% in 3Q07. Net margin has similarly expanded from 7.4% in 3Q06 to 8.2% in 3Q07. The better margins were achieved through diversification of product and customer base and increase in original design & manufacturing (ODM) activities. Venture creates more value add for customers by providing design and test development services. Venture generated cash flow from operations of S$175.6m in 3Q07. Its cash holding has increased to S$486.9m and net debt/equity ratio has reduced to 0.06x. The company is moving closer to a net cash position. Planning long-term expansion within IDR. Venture has added 150,000sf of production floor space in Johor, Malaysia and will renovate the Penang plant to create more production floor space. The company has about 12 buildings within the Iskandar Development Region (IDR). Venture plans to expand within the IDR over the longer term. Plans to hold CDOs till maturity. Venture invested in two tranche of CDOs embedded with credit derivatives in 2004, which were valued at S$206.1m as at Dec 06. The CDOs are backed by a global portfolio of investment grade corporate bonds issued by companies in a diversified range of industries and geographical markets. There is no exposure to mortgages. Venture received regular interest payments and intends to hold the CDOs till maturity (Jun 08 and Dec 09). The investment represents 11.2% of shareholders’ funds. Reiterate BUY. We like Venture for its defensive qualities (customer relationships for high-mix business are more enduring) and strong free cash flow. Our target price for Venture is S$18.50 or FY08 PE of 15x (Benchmark Electronics: 14.5x, Flextronics 13x, Jabil Circuit 13.8x and Plexus Corp: 16.5x)

Disney Tickets

Look for the cheapest website that gets you the lowest price tickets for that coming holiday. Do not search any more you have come to the right place Orlandofuntickets.com is the ultimate source for discount tickets for Disney World and all Orlando theme parks, dinner shows and attractions. Disney Tickets are now available for many different days and options from one to ten days for what is called, “Disney Magic Your Way”. OrlandoFunTickets.com has the lowest prices on all discount Disney tickets and guarantees the lowest prices. They are so many cobination that suits your taste. Do not forget there are four theme parks, two water parks and much, much more. You and your family will endless days of fun for both the young and old. Do not forget to check out the lowest discount prices for all Orlando dinner shows including Arabian Nights discount tickets, Medieval Times discount tickets, Pirates Dinner Adventure discount tickets, as well as all of the other major theme parks including Sea World tickets, Kennedy Space Center tickets, Universal Studios tickets, and more at the same website.

YANGZIJIANG

There was no month-end dressing in last 2 days and going by today’s continued fall, YZJ is going the opposite of its behaviour at end-Sept and early Oct when a sustainable breakout took it from around $1.80 to a high of $2.86 on Oct 2. This was followed by a minor new peak of $2.87 in mid-October. It was still doing alright after that peak until a heavy volume day on Oct 30 on 130.8m shares the highest turnover since debut on April 18 (462m shares changed hands), put pressure on the stock. Nevertheless, it managed to find support at $2.50 and some residual selling yesterday and today brought the stock to the next $2.43-45 support today. It is not as if YZJ has failed to penetrate new highs above $2.86-87 with no significant top formation there to justify a shakeout. It was different though early last month as the surge from 41.80 to $2.86 made it justifiable for an 18.5% correction to a low of $2.33 on Oct 4, 2 days after peaking at $2.86. Despite this big correction, the counter has stayed well above the lowest bollinger band (at $2.46) which it is now closing in. In fact only once on Aug 17 when the STI was floored to as low as 2962 that YZJ fell below the band which has never happened since April 18 debut. In addition, the close of $2.43 on Oct 4 when it hit $2.33 should be a pacifier for those concerned about a break of $2.43-45 support. On top of that the counter also rebounded strongly to close at $2.68 on Oct 17 after it fell to $2.43 and again on Oct 22 when its low was $2.49 it finished at $2.58. Now that it is back to below $2.50 at the low end of October’s $2.33-$2.87, buying on weakness below $2.50 appears appropriate.

Regional Morning Meeting Notes, November 05, 2007

CHINA Results WeiChai Power (BUY/HK$81.40/Target: HK$107.00) 3Q07: Fast growth continued. We adjust our FY08 forecasts and raise our target price to HK$107.00. INDONESIA Results Bakrie Sumatera Plantations (HOLD/Rp2,000/Fair: Rp1,900) 9M07: Net profit slips 6% to Rp136b despite a strong 39% revenue growth, mainly attributable to higher CPO price. London Sumatra Indonesia (BUY/Rp10,200/Target: Rp7,300-Under Review) 9M07: Net profit surges 64% yoy on the back of higher international CPO prices. Snippet Astra International (NOT RATED/Rp26,550) 9M07: Net Profit jumps 53%, propelled by strong 4Q sales and high CPO prices. Outlook remains positive. Bakrie Telecom (NOT RATED/Rp455) 9M07: Net profit soars 118.7% yoy to Rp113.5b due to strong growth in mobile phone subscribers. MALAYSIA Snippet Iskandar Development Region There were more market talks over the weekend that Walt Disney will build a Disney theme park in Nusajaya, IDR. SINGAPORE Results Venture Corporation (BUY/S$13.20/S$18.50) 3Q07: Creating value for sustainable margins. Snippet Keppel Land (BUY/S$8.30/Target: S$9.82) Two new JVs in Vietnam could contribute S$80m in pre-tax profit. TALKING POINT: SINGAPORE: HDD industry recovers For more details, click on the link. http://research.uobkayhian.com/research/content.show.action?filename=2007110509242872069101528.pdf

capella university

Online University such as capella university has more than 19,000 students, has released its latest Inside Online Education podcast. One of the featured student is Carla Chaldek a PhD student who currently holds the job of a Program Manager for the Joint Staff Training Program at the Pentagon. Chladek, who is pursuing a master’s degree in education at Capella, is responsible for ensuring that the training needs are met for the 2,000 military members who support the Chairman of the Joint Chiefs of Staff. Students from all walk of life, just like you and me, ordinary people no stars are featured regularly on their podcasts. The featured student or instructors, give their true feeling about their stay in the university. Just plain truth, why an online study fits their current working life.

Raffles Medical Group

3QFY07: Economics of scale Raffles Medical Group (RMG) reported a good set of results for 3Q07 with net profit of S$6.5m (+60.1% yoy) on revenue of S$43.8m (+25.2% yoy). The results were significantly better than our net profit forecast of S$5.1m. Raffles Hospital is key growth driver. Revenue from Hospital Services expanded 35.7% to an estimated S$26.2m. Raffles Hospital benefited from an increase in volume of foreign and local patients accompanied by higher revenue intensity. There were contribution from more complex procedures such as spinal surgeries, neural surgeries, fertility treatments and increased usage of neo-natal intensive care unit (ICU). Raffles Hospital has also reduced the amount of discount to corporate customers given the buoyant economic environment. The increase in patient volume has led to improvement in operating efficiency. Inventories & consumable used was controlled at 10.9% of sales in 3Q07, compared to 11.9% in the previous quarter, benefiting from greater scale in procurement. Gaining full ownership of the hospital building has also allowed Raffles Hospital to convert some office space into hospital and clinic space. Raffles Hospital benefited from economies of scale, as there is minimal increase in fixed costs as more beds are added. Overall EBITDA margin expanded from 17.9% in 2Q07 to 19.4% in 3Q07 due to margin expansion at Raffles Hospital. Steady growth from Healthcare Services. Revenue from Healthcare Services expanded 12.1% to an estimated S$17.6m. The buoyant economic environment resulted in more hiring and increased patient volume at its network of family medicine clinics from both corporate and individual customers. There was also increased contribution from International Medical Insurer (IMI). Continuing to expand network of clinics. RMG has opened a new Japanese clinic at International Building in Orchard Road in Oct 07. This is the second satellite clinic for Raffles Japanese Clinic. RMG will also start a new 24-hour multi-disciplinary medical centre at Terminal 3, which will open in Jan 08. The centre will provide family medicine, specialist care, emergency care, occupational medicine, aesthetics and health screening. Expansion into clinical research. Pfizer has set up the biggest clinical research unit in Singapore at Raffles Hospital. The S$67m 38,000sf facility is Pfizer’s third Phase 1 labs on a worldwide basis. Maintain BUY. We like RMG for the growth momentum at Raffles Hospital. Raffles Hospital will benefit from the influx of foreign patients, increase in revenue intensity and positive impact from economies of scale. We raised our target price to S$2.10 based on our three-stage discounted cash flow model.

Regional Morning Meeting Notes, October 30, 2007

CHINA Results Yanzhou Coal (HOLD/HK$17.38/Fair: HK$17.40) 3Q07: Results in line with estimates. Maintain HOLD due to limited asset injection and high operating risk. Update China Automation Group (BUY/HKS$2.95/Target: HK$4.55) A leading automation systems provider in China. We are initiating coverage with BUY recommendation and target price of HK$4.55. Snippet COSCO Pacific (BUY/HK$25.45/Target: HK$24.00 ? Under Review)) 3Q07 performance in line with our forecast. HONG KONG Snippet EganaGoldpfeil (BUY-Under Review/HK$0.66/Target: HK$7.70-Under Review) FY07: Reported a net loss of HK$2b for the year ended 31 May 07. The hefty loss was due to the HK$2b impairment losses on assets. I.T. (NOT RATED/HK$1.93) 1HFY08: Net profit jumped 41.4% yoy to HK$44m. Trading at 12x FY08 PE, the counter looks fairly valued considering its small market capitalisation. INDONESIA Results Astra Agro Lestari (BUY/Rp22,100/Target: Rp16,900-Under Review) 9M07: Net profit doubled yoy to Rp1,285.9b from Rp623.1b in 9M06, thanks to strengthening of international CPO prices. Bank Niaga (HOLD/Rp900/Fair: Rp880) 3Q07: Margin contraction and further deterioration in loan quality depressed earnings. We revised down our earnings estimation and fair price. International Nickel Indonesia (BUY-Under Review/Rp84,000/Target: Rp65,000-Under Review) 9M07: Net profit soared 292.3%, benefitting from a rise in average nickel-in-matte price by 108.9% yoy and increase in nickel-in-matte deliveries. MALAYSIA Update Eastern Corridor Economic Region Masterplan launched yesterday. Total development value of RM112b and 560,000 new jobs over the next 12 years. Hap Seng Plantation (IPO/Retail: RM2.65, Institutional: RM3.05) Efficient small pure plantation operator with 32,695ha of landbank. To be listed on the main board of Bursa Malaysia at FY08 PE of 13.4x. Snippet Equine Capital (BUY/RM2.92/Target: RM6.55) Proposes private placement of up to 10% of share capital. This could be used to potentially raise its 25%-stake in Abad Naluri. SP Setia (BUY/RM8.25/Target: RM9.70) Signed 30-year lease agreement with Tesco for a 9.7-acre plot in Bukit Indah, which should boost traffic flow. YNH Property (BUY/RM2.67/Target: RM3.50) CIMB-Mapletree underwriting en-bloc 66 units of Ceriaan Kiara project in Mont' Kiara for around RM60m or RM380psf. SINGAPORE Results Raffles Medical Group (BUY/S$1.53/Target: S$2.10) 3QFY07: Economics of scale. Update Hongkong Land (BUY/US$4.96/Target: US$5.97) Hong Kong's increasing role as an international financial centre for China will see firm support on office rents in Central, despite new supply. Snippet Fuxing China Group (NOT RATED/S$0.56) Benefitting from solid technical edge. THAILAND Results Dynasty Ceramic (SELL/Bt16.00/Fair: Bt13.23) 3Q07: Earnings continued to decline as the industry was in the low season. Performance is unlikely to improve until FY08. PTT Exploration & Production (BUY/Bt169.00/Target: Bt178.00) 3Q07: Both volume and ASP up qoq and yoy. Thai Stanley (HOLD/ Bt145.0/Fair: Bt152.0) 2QFY08: Sluggish top line expansion but bottom line boosted by margin improvement. TALKING POINT: China Shipping Development (1138.HK): BUY - Construction of four new vessels For more details, click on the link. http://research.uobkayhian.com/research/content.show.action?filename=2007103009271542375237734.pdf