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Thu, 17 Sep 2009, 10:22:40 SGT OCBC Investment Research

Summary:
Since we recommended Rotary Engineering (Rotary) as a positive themed investment on 8 Jul 09, Rotary has returned ~62%
while the FSSTI gained 18% during the same period. As mentioned during the 2Q09 briefing, Rotary is still pursuing
projects in the region despite clinching the landmark US$745m SATORP project in Saudi Arabia.

While caution is still prevalent, credit has loosened somewhat and Rotary should be able to seal a deal before the year is out.
Management has also updated us that a 50-man SATORP team will be based here with the Rotary team with initial
procurement starting end 2009. Engineering and design work is slated to be finished 2Q10.

Subsequently, material take-off will start and revenue recognition will ramp up. On the local front, 10 projects are slated to
conclude by 2H09 and we think tail-end variation orders will be awarded and will accrete positively. With good progress on
the SATORP project, more regional-based projects slated to come online and improved equity risk appetite, we have
re-pegged our valuation to 13x FY10F EPS (prev. 12x).

Iterate BUY for Rotary with a fair value of S$1.37 (prev. S$1.26).

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NOTICE OF A DIRECTOR'S (INCLUDING A DIRECTOR WHO IS A SUBSTANTIAL SHAREHOLDER) INTEREST AND CHANGE IN INTEREST *

* Asterisks denote mandatory information

Name of Announcer *	HONG LEONG ASIA LTD.
Company Registration No.	196300306G
Announcement submitted on behalf of	HONG LEONG ASIA LTD.
Announcement is submitted with respect to *	HONG LEONG ASIA LTD.
Announcement is submitted by *	NG SIEW PING, JASLIN
Designation *	COMPANY SECRETARY
Date & Time of Broadcast	16-Sep-2009 17:39:34
Announcement No.	00085

>> ANNOUNCEMENT DETAILS

The details of the announcement start here ...

>> PART I

1. Date of notice to issuer * 16-09-2009

2. Name of Director * Kwek Leng Beng

3.	Please tick one or more appropriate box(es): *
	Notice of a Director's (including a director who is a substantial shareholder) Interest and Change in Interest. [Please complete Part II and IV]

>> PART II

1. Date of change of Shareholding 16-09-2009

2. Name of Registered Holder Kwek Leng Beng

3. Circumstance(s) giving rise to the interest or change in interest Exercise of Share Options/Convertibles

# Please specify details

4. Information relating to shares held in the name of the Registered Holder

No. of Shares held before the change	600000
As a percentage of issued share capital	0.157 %

No. of Shares which are subject of this notice	60000
As a percentage of issued share capital	0.016 %

Amount of consideration (excluding brokerage and stamp duties) per share paid or received 1.51

No. of Shares held after the change	660000
As a percentage of issued share capital	0.173 %

>> PART III

1. Date of change of [Select Option]

2. The change in the percentage level From % To %

3. Circumstance(s) giving rise to the interest or change in interest [Select Option]

# Please specify details

4.

A statement of whether the change in the percentage level is the result of a transaction or a series of transactions:

>> PART IV

1.	Holdings of Director , including direct and deemed interest :

	Direct	Deemed
No. of shares held before the change	600000	0
As a percentage of issued share capital	0.157 %	0 %
No. of shares held after the change	660000	0
As a percentage of issued share capital	0.173 %	0 %

Footnotes

No. of Options held before the transaction: 60,000
No. of Options held after the transaction: Nil

Note: The above percentages have been calculated based on 381,452,018 issued ordinary shares in the capital of the Company as at 16 September 2009 and rounded to 3 decimal places.

Attachments

Total size = 0
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Nice. +0.08

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Allgreen is continue heading North now. +0.020 now!

Current Allgreen Projects: (http://www.ura.gov.sg/realEstateWeb/realEstate/pageflow/price/submitSearch.do)
One Devonshire (Devonshire Road)Cumulative Units Sold to-date:              149Units
Pavilion Park (Phase 2) (Bukit Batok Road)Cumulative Units Sold to-date:    82Units
The Cascadia (Bukit Timah Road)*Cumulative Units Sold to-date:               187Units
VIVA (Suffolk Walk)Cumulative Units Sold to-date:                                   218Units

*Total Cumulative Units Launched to-date:   658Units
*Total Cumulative Units Sold to-date:           636Units
Total Cumulative SOLD units %:                     96.66%

(From CIMB 16Sep09)
The recent introduction of property cooling measures is expected to cause some
moderation in transaction volumes. We believe a combination of dampened sentiment
and the remaining days of the Hungry Ghost month could result in considerably
reduced monthly volumes in 4Q09.

However, we see no need for alarm just yet. At the moment, broad property drivers remain intact,
namely ample liquidity, low interest rates and strong household balance sheets.

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HL Asia is outperform well today.. +0.070 now!

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Moving up....power up +0.060 now!

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nice! +0.030!

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Current Allgreen Projects:
(http://www.ura.gov.sg/realEstateWeb/realEstate/pageflow/price/submitSearch.do)

*Total Cumulative Units Launched to-date:   658Units
*Total Cumulative Units Sold to-date:           636Units
Total Cumulative SOLD units %:                     96.66%

One Devonshire (Devonshire Road)
Total Number of Units in Project:        152Units
*Cumulative Units Launched to-date:   152Units
*Cumulative Units Sold to-date:           149Units
Median Price ($psf) in the Month Number Sold By Price Range:   $2,066

Pavilion Park (Phase 2) (Bukit Batok Road)
Total Number of Units in Project:         298Units
*Cumulative Units Launched to-date:   84Units
*Cumulative Units Sold to-date:           82Units
Median Price ($psf) in the Month Number Sold By Price Range:   $750

The Cascadia (Bukit Timah Road)
Total Number of Units in Project:         536Units
*Cumulative Units Launched to-date:   187Units
*Cumulative Units Sold to-date:           187Units
Median Price ($psf) in the Month Number Sold By Price Range:   $N.A

VIVA (Suffolk Walk)
Total Number of Units in Project:         235Units
*Cumulative Units Launched to-date:   235Units
*Cumulative Units Sold to-date:           218Units
Median Price ($psf) in the Month Number Sold By Price Range:   $1,537

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Viva Launch on 3Aug2009
*Estimated Total Sold psf Revenue to-date: $ $509,677,557 ($549,399,113 x 92.77%)

Total Number of Units in Project: 235 units
Cumulative Units Sold todate: 218 units (92.77% SOLD, From CIMB 16Sep09)

VIVA info: http://www.viva.com.sg/
Developer: Allgreen

Launch on 3Aug2009
Location: No. 2, 6 & 8 Suffolk Walk

No of units: 235 condominiums
• 2BR (957 sqft) :                  25 units (approx 23925sqft)
• 2+S (1044 sqft) :                 25 units (approx 26100sqft)
• 3BR (1323 – 1345 sqft) :     69 units (approx 91287sqft)
• 3+S (1517 – 1528 sqft) :      39 units (approx 59163sqft)
• 4BR (1840 – 1991 sqft) :     65 units (approx 119600sqft)
• Suites (2486 – 3810 sqft) :    9 units (approx 22374sqft)
• Penthouses (4908 – 6339) : 3 units (apporx 15000sqft)

• Total area: approx 357449sqft
• $1,537psf (From CIMB 16Sep09)
• Total value: $549,399,113

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DBS Group Research . Equity 15 Sep 2009

Switch Strategies.
• Calling for a switch in strategies:
(1) Hunt for midcap value;
(2) Diversify in big-caps; (3) Accumulate those with small landbank in a de-rating
We had previously advocated our preference for mid/small-caps and those with a
sizeable landbank. For now, we are calling for a switch in strategies:
(1) Stay selective in the mid-caps, hunt for value, BUY Allgreen (TP S$1.36)
and Bukit Sembawang (TP S$5.94);
(2) Look for diversification in the big-caps,
BUY Capitaland (TP S$4.18);
(3) In a sector de-rating, we would take the opportunity to accumulate those with a
smaller landbank for less policy impact and potential opportunity to landbank for
cheaper as competition for sites may slow down. Keep watch on Wheelock (HOLD,TP S$1.85),
UOL (BUY, TP S$3.93) and Wing Tai (HOLD, TP S$1.75), which could return to development
of mass/mid-market sites as the Confirmed List returns. We downgrade City Dev and
Ho Bee to HOLD, on valuation.

RESIDENTIAL DEVELOPERS (As at 14Sep)
Allgreen         S$1.16 RNAVS$1.70 Disc-20% TP$1.36 Upside 17%   Buy
Bukit Sembawang S$4.97 RNAVS$8.49 Disc-30% TP$5.94 Upside 20%   Buy
Capitaland       S$3.72 RNAVS$5.26 Disc-15% TP$4.18 Upside 12%   Buy
City Dev         S$10.24 RNAVS$9.23 Disc+20% TP$11.08 Upside 8%    Hold (from Buy)
Guocoland        S$2.24 RNAVS$2.77 Disc-30% TP$1.94 Upside -13% Hold
Ho Bee           S$1.39 RNAVS$2.03 Disc-30% TP$1.42 Upside 2%    Hold (from Buy)
SC Global        S$1.56 RNAVS$2.28 Disc-30% TP$1.60 Upside 3%    Hold
Wheelock         S$1.83 RNAVS$2.31 Disc-20% TP$1.85 Upside 1%    Hold
Wing Tai         S$1.76 RNAVS$2.18 Disc-20% TP$1.75 Upside -1%   Hold

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Looks like Midas is getting hot..TOP 20 vol now! Hope it can gain ground above $0.86

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+$0.06 Wow!

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Hope Allgreen will reach $1.30!

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Wow!

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+$0.02 now...

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+$0.04 now..

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28 August 2009
Allgreen Properties Ltd S$1.21 Target: S$1.50
Source: Company, CIMB-GK Research, Bloomberg

Insights from company visit
We recently met Mr Khor Thong Meng, Executive Director of Allgreen, to discuss the
group’s plans and strategies. Key issues raised were Allgreen’s property
developments in China and Singapore, and management’s future focus.

China Projects:
Financing update;
Allgreen has eight sites in China, six through a JV with Kerry Properties and Shangri La. For JV projects,
total equity commitment is around S$700m, of which around S$450m is for the land and S$250m for construction. In the
last two years, Allgreen has paid down the bulk of the land-cost commitment. We expect proceeds received from recent
property presales in Singapore to take care of the rest. Management guided that Loan-to-Value (LTV) ratio for its China
developments ranges from 40% to 50%. Assuming a 40% LTV, we estimate a total development cost of S$1.1bn-1.2bn.
Our model accounts for this. We believe financing for the bulk of the debt component is already in place.

Planning to push out projects soon; selling price targets bullish;
Allgreen plans to release two residential projects in the near term: a site in Tianjin and a site in Chengdu. For the former,
construction is underway. Management guided that residential prices in Tianjin have gone up from Rmb8,000psm to Rmb16,000psm.
We believe it plans to use this as a benchmark for its Tianjin project. For its Chengdu project, Allgreen is looking at
Rmb12,000-14,000psm. Management believes that units in certain projects in the area are now commanding as much as Rmb17,000psm.
While the tone of the guidance is positive, our cross checks with our China analyst, Alice Chong, suggest that optimism should
be kept in check. For properties in Tianjin, ASPs of Rmb16,000psm are achievable, but only for high-end projects that are
located in very good districts. As a reference, Yanlord, a high-end developer in China, recently launched and sold a project in
Tianjin at Rmb16,000psm while Guangzhou R&F also achieved ASPs of Rmb10,000-16,000psm. For Chengdu, she believes
ASPs of Rmb17,000psm are mostly reserved for super-luxury projects. By and large, properties in the area are still
fetching Rmb6,000-8,000psm.

China strategy;
Allgreen plans to expand its China operations, likely through JVs with Kerry Properties and Shangri La again,
with Allgreen taking up minority stakes. We are unsurprised, given Allgreen’s relative inexperience in China’s property sector.
A consortium could also yield pricing advantages in land-banking.

Valuation and recommendation:
Raising RNAV estimate and target price; maintain Outperform. We raise our ASP assumptions for Allgreen’s Singapore
and China projects, based on the latest guidance. In particular, our China ASPs have been raised from Rmb10,000psm to
Rmb12,000-14,000psm, to reflect optimism on China properties. Our estimates are still 10-15% below guidance.

Our FY09-11 core EPS estimates have been raised by 8-30% as a result. We raise our end-CY10 RNAV estimate and
target price (parity to RNAV) from S$1.38 to S$1.50 to factor in the above, offset by lower capital values for Allgreen’s
investment properties. While the stock is up 134% YTD, we believe positive take-up of planned launches in 2H09 could lift its
valuations further. Allgreen is best positioned to capitalise on rising sentiment for mass-mid-tier properties, in our view, given its large
inventory in this segment.

Maintain Outperform.

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Property - CIMB 7 September 2009

Race is on for GLS sites

Valuation and recommendation:
Triggering of GLS sites to provide positive newsflow. The general environment
for land-banking has improved considerably compared with the beginning of the year.
Funding spreads have begun to narrow while developers’ balance sheets have been
strengthened through recapitalisations. These, combined with significant
improvements in capital values in the physical market, have made land acquisitions
interesting again. At the right prices, we believe the trigger of GLS sites could provide
positive newsflow for developers.

We retain our Neutral position on the sector simply because of our negative view
on heavily weighted CapLand.

We maintain our positive view on specific residential players under coverage. CityDev
remains our top pick in the sector with Allgreen and Ho Bee remaining our small-mid favourites.

Heat is on for GLS sites in reserved list:
Developers motivated to land-bank again. Property sentiment is currently sky-high.
As property launches continue to sell out, we believe developers’ next step will be to
replenish land banks more aggressively. The motivation comes from depleting
inventories and falling construction costs. System inventory has fallen to 2006 levels
(about 35,000 units) with unsold inventories for purer developers under our coverage
substantially dwindling from a year ago. Our recent meetings with developers and
contractors also suggest that the magnitude of the decline in construction costs is
significant, over 25% down from the peak levels for all segments. Given that the
private en-bloc market is still rather unattractive, developers are likely to turn their
attention to Government Land Sale (GLS) sites currently in the reserved list.

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Property - CIMB 7 September 2009

Race is on for GLS sites

Valuation and recommendation:
Triggering of GLS sites to provide positive newsflow. The general environment
for land-banking has improved considerably compared with the beginning of the year.
Funding spreads have begun to narrow while developers’ balance sheets have been
strengthened through recapitalisations. These, combined with significant
improvements in capital values in the physical market, have made land acquisitions
interesting again. At the right prices, we believe the trigger of GLS sites could provide
positive newsflow for developers.

We retain our Neutral position on the sector simply because of our negative view
on heavily weighted CapLand.

We maintain our positive view on specific residential players under coverage. CityDev
remains our top pick in the sector with Allgreen and Ho Bee remaining our small-mid favourites.

Heat is on for GLS sites in reserved list:
Developers motivated to land-bank again. Property sentiment is currently sky-high.
As property launches continue to sell out, we believe developers’ next step will be to
replenish land banks more aggressively. The motivation comes from depleting
inventories and falling construction costs. System inventory has fallen to 2006 levels
(about 35,000 units) with unsold inventories for purer developers under our coverage
substantially dwindling from a year ago. Our recent meetings with developers and
contractors also suggest that the magnitude of the decline in construction costs is
significant, over 25% down from the peak levels for all segments. Given that the
private en-bloc market is still rather unattractive, developers are likely to turn their
attention to Government Land Sale (GLS) sites currently in the reserved list.

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Property - CIMB 7 September 2009

Race is on for GLS sites

Valuation and recommendation:
Triggering of GLS sites to provide positive newsflow. The general environment
for land-banking has improved considerably compared with the beginning of the year.
Funding spreads have begun to narrow while developers’ balance sheets have been
strengthened through recapitalisations. These, combined with significant
improvements in capital values in the physical market, have made land acquisitions
interesting again. At the right prices, we believe the trigger of GLS sites could provide
positive newsflow for developers.

We retain our Neutral position on the sector simply because of our negative view
on heavily weighted CapLand.

We maintain our positive view on specific residential players under coverage. CityDev
remains our top pick in the sector with Allgreen and Ho Bee remaining our small-mid favourites.

Heat is on for GLS sites in reserved list:
Developers motivated to land-bank again. Property sentiment is currently sky-high.
As property launches continue to sell out, we believe developers’ next step will be to
replenish land banks more aggressively. The motivation comes from depleting
inventories and falling construction costs. System inventory has fallen to 2006 levels
(about 35,000 units) with unsold inventories for purer developers under our coverage
substantially dwindling from a year ago. Our recent meetings with developers and
contractors also suggest that the magnitude of the decline in construction costs is
significant, over 25% down from the peak levels for all segments. Given that the
private en-bloc market is still rather unattractive, developers are likely to turn their
attention to Government Land Sale (GLS) sites currently in the reserved list.