CapitaLand
Price – $3.69
Target – $3.84

CapitaLand is currently in exclusive negotiations with BlackRock for the purchase of Asia Square Tower 2, which has 750,000 square feet of office space, 30,000 square feet of retail space and a hotel component (Westin Hotel). The deal, if concluded, would strengthen CapitaLand’s recurring income base and allow it to strategically position itself ahead of a potential rebound in Singapore’s office sector. The group’s sales in China is likely to see a slowdown from recent policy tightening measures, including raised downpayments for second home purchases as well as limiting maximum mortgage repayment periods. Nevertheless, its sales in Singapore launches have picked up after increased marketing efforts and launch of its Stay-Then-Pay programme. Maintain NEUTRAL. RHB Research (27 Mar)

China Aviation Oil
Price – $1.47
Target – $2.28

China Aviation Oil’s (CAO) position as the sole imported jet fuel supplier in China makes it a proxy for China’s growing outbound travel segment, with the Civil Aviation Administration of China targets to have 260 airports by 2020. Meanwhile, CAO became a member of the LAXFUEL consortium, the largest jet fuel consortium in the US, solidifying its position in one of the world’s largest aviation markets, and in one of the world’s busiest airports Los Angeles International Airport. In addition, future associate contributions from Shanghai Pudong International Airport Aviation Fuel Supply Company (SPIA) looks promising as SPIA is not only the exclusive refueller for Shanghai Pudong airport, but is also undergoing capacity enhancements with a fifth runway and a new satellite terminal expected to be completed by end-FY17 and FY19 respectively. Maintain ADD. CIMB Securities (23 Mar)

Keppel Corporation
Price – $6.83
Target – $6.98

Borr Drilling (Borr) announced that it was acquiring Transocean’s fleet of jackup rigs for US$1.35b. Borr will make a downpayment of US$275m, and assume the remainder of the payment instalments owed to Keppel Corporation (KepCorp), which will deliver the first three rigs over 2017 to 2018 and the remaining two in 2020. Borr’s deposit will come on top of the US$219m deposit already collected from Transocean. Together with the sum due on delivery of the first three rigs, this translates to a cash inflow of roughly US$172m to US$344m within 2017 alone, a positive sign for KepCorp’s current tight balance sheet situation. We believe that KepCorp’s share price is largely at fair value at this level, though contract wins will likely spur share price upwards given the optimism as oil price rises. Maintain HOLD. UOB-Kay Hian (22 Mar)

Singapore Press Holdings
Price – $3.53
Target – $3.39

On the back of a robust 4Q16 which registered the strongest quarterly gross domestic product (GDP) growth in six years at 12.3%, our economic desk has upgraded 2017 GDP growth forecast for Singapore to 2.8%. We are now less pessimistic on Singapore Press Holdings (SPH) and expect to see adspend improvement by declining at a slower rate underpinned by strong economic recovery and pick-up in consumption. On 17 March, SPH announced that the group, along with Keppel T&T as well as Axiata Group, has appointed a financial adviser to review their stakes in M1. Should there be a successful divestment of M1, we believe that there could be support to SPH’s share price from expectations of special dividends. The stock is now trading at 22.7 times forward price-to-earnings ratio with decent dividend yield at 5.1%. Upgrade to HOLD. DBS Vickers (20 Mar)