MAPLETREE GREATER CHINA COMMERCIAL TRUST

• Broker: OCBC Investment Research
• Call: Buy
• Target price: $1.11

THE trust has announced its proposed acquisition of a 100 per cent interest in Sandhill Plaza for nearly $412.2 million. The complex is a business park within the Shanghai Free Trade Zone. Its occupancy rate was 96.2 per cent at the end of March.

Future growth would likely come from positive rental revisions, as the current rent at Sandhill Plaza is nearly

10 per cent below the average rental of its comparable basket. Revenue projections for the trust have been raised by 5.7 per cent for financial year 2016.

MIDAS HOLDINGS

• Broker: OCBC Investment Research
• Call: Hold
• Target price: $0.375

MIDAS Holdings announced this week that its joint-venture company Nanjing SR Puzhen Rail Transport (NPRT) has secured 2.1 billion yuan (S$452 million) worth of metro and tram contracts in China.

Delivery of the metro trains and trams is scheduled next year and the year after, and these contracts are expected to contribute positively to Midas' financial performance for both aforementioned financial years.

Our current model factors in lumpy contributions from NPRT in the past. Hence we keep our forecasts unchanged.

RIVERSTONE HOLDINGS

• Broker: Maybank Kim Eng
• Call: Buy
• Target price: $2.05

SINGAPORE-INCORPORA-TED Riverstone Holdings, which produces healthcare gloves in Malaysia, is expected to benefit from the US dollar's strength against the ringgit as 70 per cent to 80 per cent of its revenue, as opposed to 40 per cent to 50 per cent of its cost of sales, is denominated in US dollars.

This translates into net earnings exposure of 3 per cent to 6 per cent for each 10 per cent movement in the US dollar, in our estimation.

While gains for its healthcare gloves may be muted by major capacity expansion in the industry, cleanroom gloves stand to gain. These are expected to account for 68 per cent of its FY 2015 gross profit.

If demand were to surge in the event of a Middle East respiratory syndrome outbreak, Riverstone could book higher average sales prices than sales volume, as its capacity has been filled.

SEMBCORP MARINE

• Broker: Nomura
• Call: Buy
• Target price: $4.04

SETE Brasil could receive up to US$5 billion (S$6.6 billion) of financing for its newbuild deepwater rig programme.

Accumulate Sembcorp Marine as price drag from Sete Brasil orders is mitigating. We maintain a "buy" call on the stock.

We expect the eventual resolution of Sete Brasil's funding issues to remove a share price overhang on the stock since late last year.

The market may be surprised by stronger order wins in the second half of the year for semi-submersible crane vessels and offshore production units.

As crude oil price grinds higher, there could also be more drillship orders by the end of the year.