OCBC Report - 11 Jan 2008

Jackspeed Corporation: Additional stimulus to Thailand's auto industry

Summary: We met up with Jackspeed Corporation's (JS) management recently for an update and learnt that their aviation certification progress for FAR 145 is on track.

Obtaining the FAR 145 certification would be an added boost to JS' technical competency and could improve its sales generating ability.

In addition, The Thailand Board of Investment's (BOI) new incentives for the assembly of passenger cars and motorcycles with four-stroke engines greater than 500cc would make Thailand more attractive for auto companies to establish their production base there.

This would enhance JS' growth prospects for their parts/accessories business in Thailand. We are maintaining our fair value of S$0.26, which implies a potential upside of about 15.6% from the current level of S$0.225. Hence, we reiterate our BUY rating. (Selena Leong)

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NEWS HEADLINES

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- Banyan Tree Holdings Ltd has signed an agreement to operate a Banyan Tree resort in the Emirate of Ras Al Khaimah, UAE.