Money Talk: Capitaland, Trek2000, Noble

SINGAPORE - Stay up to date on market chatter with our picks of the latest broker research reports, compiled by The Straits Times Money Desk.

1. Capitaland

Broker: CIMB

Capitaland's results were in line with expectations, with core profit for the first nine months of 2014 (9M14) accounting for 75 per cent of our full-year estimate. While residential contributions in China were more volatile, strong recurrent income from CapitaMalls Asia (CMA) and serviced residence helped to fill the slack.

Going forward, we anticipate overall ROE to pick up in the medium-term as the group continues to launch more residences in China and time its launches in Singapore, while CMA is expected to continue to grow both operating metrics and portfolio size through developing its pipeline of assets. It also targets to double its serviced residence portfolio by 2020.

Maintain ADD with slightly higher target price of $3.84, from $3.15, pegged at a 20 per cent discount to its RNAV (revaluated net assets value).

2. Trek2000

Broker: OSK-DMG

Trek's revenue for the third quarter of 2014 (3Q14) surged 119 per cent year-on-year (YoY) to US$35.6 million from US$16.3m while its net profit after tax jumped 144.5 per cent YoY to US$760,000, driven partially by increased sales to a number of new MNC customers, as well as its toy deal with Rely/Mattel which commenced in 3Q14.

9M14 net profit after tax to shareholders of S$1.7 million made up 81 per cent of our estimate, well on track. We expect its wireless Flucard orders from Rely/Mattel to surge, especially in FY15.

Maintain BUY with target price of 61 cents

3. Noble Group

Broker: OCBC Investment Research

Noble reported its 3Q14 results, with revenue climbing 6.9 per cent to US$2.33 billion, and net profit of US$153.9 million, versus US$22.9 millio in 3Q13; although it included a gain on supply chain asset of US$81.8 million (which also includes disposal gain of US$254 million on its 51 per cent stake to Cofco, but offset by losses in its mining assets).

9M14 revenue was up 4 per cent at US$64822.4 million, meeting 64 per cent of our full-year forecast, while net profit jumped 193 per cent to US$127.0 million, meeting 79 per cent of our forecast. Noble also declared a special dividend of 3 US cents a share.

Upgrade to BUY from Hold, with fair value unchanged for now at $1.31.

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