Stocks to watch: TRC, Bina Puri, Sime Darby, TM, Stone Master

Monday, November 29, 2010

KUALA LUMPUR: Worries about the European sovereign debt crisis spreading within the continent and the Korean conflict are expected to see investors staying on the sidelines in the coming week, starting Monday, Nov 29.

On Wall Street, US stocks fell after spending Black Friday in the red as worries over the euro zone’s finances overshadowed positive readings on the start of the holiday shopping season.

The Dow Jones Industrial Average dropped 95.28 points, or 0.9%, to end at 11092. JP Morgan Chase and American Express fell the hardest, with both stocks losing 1.7%. The Nasdaq Composite dropped 0.3% to 2,534. The Standard & Poor’s 500 index declined 0.8% to 1189.

At Bursa Malaysia, stocks to watch are TRC Synergies Bhd and BINA PURI HOLDINGS BHD, SIME DARBY BHD, TELEKOM MALAYSIA BHDand Stone Master Corp Bhd.

Syarikat Prasarana Negara Bhd picked TRC Synergies Bhd as the main contractor for the 17-km extension of the Kelana Jaya Line from Kelana Jaya station to Putra Heights, which includes 13 new stations. The contract value is RM950 million and it is for 30 months.

It also appointed Bina Puri-Tim Sekata JV as the main contractor to implement the 17.7 km extension for the Ampang LRT line between Sri Petaling to Putra Heights. The contract value is RM634.64 million and the duration is 27 months.

Sime Darby swung back into the black with net profit of RM654.74 million in the first quarter ended Sept 30, 2010 and has set a target of achieving net profit of RM2.5 billion for the current financial year.

Telekom Malaysia reported a 140% surge in its third quarter earnings to RM446.6 million from RM185.7 million due to higher operating revenue, disposal of investments and higher unrealised exchange gain.

Stone Master is venturing into China’s liquefied natural gas (LNG) transportation business following the proposed acquisition of a 51% stake in JinZhou Everthriving Logistics Co. Ltd for RM25 million. The shares surged 30 sen last Thursday before the suspension on Friday for the announcement.


Scomi Group in the red with RM166m net losses

Sunday, November 28, 2010

KUALA LUMPUR: SCOMI GROUP BHD reported net losses of RM166.48 million in the third quarter ended Sept 30, in contrast to the net profit of RM22.97 million a year ago.

The company said on Friday, Nov 26 the losses were due to lower revenue from its core business while there was a potential impairment and costs amounting to RM52.6 million and provision of RM109.7 million.

Turnover was RM367.6 million compared with RM448.5 million a year ago, with the major contributors from the oilfield services division and the transport solutions division. Loss per share was 11.99 sen compared with earnings per share of 2.27 sen.

“The oilfield services division generated revenue of RM269.5 million for the current quarter, representing a decrease of RM31.4 million or 10% over RM300.9 million recorded in the corresponding quarter in 2009,” it said.

Scomi said the decrease was mainly due to lower sales in UK, Middle East and India, whilst Russia and Asia countries performed fairly well. It added the weakening of US dollar against most currencies has also substantially impacted the revenue reported for the period.

Revenue from the transport solutions division was RM77.2 million, down RM45.1 million or 37% from RM122.3 million a year ago. The decline in revenue was due to the disposal of machine shop in the preceding quarter.

Scomi said the energy logistics division was impacted by the cabotage law in the regional markets which delayed the deployment of new vessels into these markets.

The company explained this caused it to reduce its equity interest in its coal logistics and offshore businesses in Indonesia.

“This transaction resulted in the need to remeasure the disposal group to its fair value in the current quarter with a provision being made amounting to RM109.7 million. However, the division will receive approximately RM550 million in cash upon completion of the transaction,” it said.

After the provision and other provisions for potential impairment and costs totaling RM52.6 million, net loss for the current quarter was RM166.5 million compared to net profit of RM23.0 million a year ago.

“Excluding these adjustments, net loss for the quarter would have been RM4.2 million,” it said.

source: theedgemalaysia


Nokia C6-01 at RM1099

Yesterday I was in Giant Terengganu, found that Nokia C6-01 was selling at RM1099 while at Mydin Mall it was selling at RM1200 price. The different is RM100. But all the softwares is not provided. We need to install the software ourselves. The set is original set from Zitron with 1 year warranty period.

At Giant, a shop sell in cash only. The seller said he only provide the GPS installation while others need to do by ourselves.

I am still thinking whether to buy or not. Buy or not? Buy or not....


Gold Price Chart

Saturday, November 27, 2010

Gold Price

Bearish divergence on Twiggs Momentum (21-day) and penetration of the rising trendline both warn of a correction. Failure of support at $1320 would confirm — while recovery above $1380 would suggest an advance to 1500*.

by collin twiggs


US Dollar Index

The US Dollar Index is testing secondary resistance at 80 (from the August low). Penetration of the rising trendline indicates that the down-trend is losing momentum. Twiggs Momentum (21-day) holding above the zero line would confirm. The primary trend remains down, however, and only a decline that respects support at 75.50 would signal a trend change.

by collin twiggs


RHB Invest Highlights

Friday, November 26, 2010

Top Story

Oil & Gas:
More room for growth?
  • Dialog: Fair value raised to RM1.94. Outperform (up from MP)
  • Sapuracrest: Fair value raised to RM3.34. Outperform
  • Kencana: Fair value raised to RM2.60. Outperform
  • KNM: Fair value maintained at RM0.58. Outperform
  • Dayang: Fair value maintained at RM3.86. Outperform
  • Petronas Gas: Fair value maintained at RM13.51. Outperform
  • Wah Seong: Fair value maintained at RM2.21. Market Perform
  • Petra Perdana: Fair value maintained at RM0.44. Underperform
  • We upgrade our call on the market to Overweight (from neutral previously).
  • Our top pick at this juncture is Kencana, while our longer-term pick is Dialog.

Corporate Highlights

  • On track to meet our full-year forecast.
  • Maintain Outperform with fair value of RM5.34.

  • Another offer to buy QSR; KFCH could be privatized.
  • We maintain our fair value for KFC at RM3.85.
  • We also maintain our Underperform call, pending further developments.

  • Acquisition of VTTI completed, minor news flow from the LNG segment expected
  • Indicative fair value is RM8.14. Maintain Underperform.

Technical Highlights

Daily Trading Strategy:
  • Removing the 10-day SMA will boost sentiment.
  • If the FBM KLCI is still unable to penetrate the 10-day SMA today and the daily turnover fails to improve from the current 1.0bn shares mark, selling activities may increase ahead of the weekend.
  • In contrast, a removal of the 10-day SMA with a higher daily trading volume will likely boost the short-term trading sentiment, in our view.
  • Nonetheless, the speculative interests are expected to drive share prices on the mid to lower-cap stocks, while mild profit-taking activities on the core defensive heavyweights may continue.

Daily Technical Watch: KNM Group
  • Follow-through buying support if it surpasses RM0.50 soon.
  • Immediate Support at RM0.44
  • Immediate Resistance at RM0.50Top Story


Maybank IB Views

AirAsia RM2.55: Buy

Shocking, but in a good way Shariah-compliant

Jetting up. AirAsia reported the highest 3Q operating profit in its history: net profit of RM271m (+1,022% YoY). We raise our forecasts to reflect a stronger yield environment and the rebound of associates' performances. AirAsia is the cheapest low cost carrier (LCC) globally, after adjusting for normalised accounting practices. Buy with a higher RM3.36 target price. We now peg the stock to 9.0x 2011 PER (previously 10.1x).

Malaysian Airline System RM2.06: Buy
It's coming together

Above expectations, cost reduction driven. 3Q10 recurring net profit of RM147m - reversal from losses, is the first sign that MAS is graduating to sustainable profits going forward. Yields were ahead - albeit at a lower pace than peers, but unit cost has improved significantly due to efficiency gains and higher utilization rate. We raise our earnings forecasts with slightly higher RM2.64 TP, based on 12.4x 2011 PER, 10% premium to peers for its higher growth prospects.

Proton Holdings RM4.73: Buy
Inspira to inspire

Results yielded no surprises, with 1H net profit meeting 54% of our full-year forecast. As Proton seeks to unlock value through strategic partnership(s) and explore opportunities overseas, valuations are inexpensive (0.5x book and 9-10x forward PERs). It also has a sizeable war chest of RM1.2b (RM2.12/sh cash), which could be upstream for higher dividends. Proton also trades at a lower 6x PER ex-cash. We remain Buyers of Proton with a RM5.90 target price (11x FY12 EPS).

Hock Seng Lee RM1.92: Buy
Share bonus cheer Shariah-compliant

Results in line; Buy. RM52m 9M10 net profit (+34% YoY) is 72% of our 2010 forecast and 73% of consensus. A surprise 1-for-50 treasury shares distribution translates into 3.8sen (net) return to shareholders based on the last close share price. We are still positive on HSL delivering double-digit earnings growth into 2011 and benefiting from job flows under SCORE. Our TP pegs the stock at 14x 2011 PER.

The FBM KLCI rebounded 7.95 points to 1,496.49 yesterday. Its resistance areas at 1,498 and 1,515 will cap market gains, whilst its obvious support areas are located at 1,477 and 1,496.
Trading idea for today is a TAKE PROFIT call on TENAGA.

Other Local News
MMHE: Eyes RM1b profit. Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), is targeting a RM1b net profit within five years. Prime Minister Datuk Seri Najib Razak said the target should be regarded as the company's key performance indicator (KPI). (Source: The Star)

O&G: Petronas to invest in Johor O&G hub, PM to announce new projects next week. Petroliam Nasional Bhd (Petronas) will play a major role in the development of Teluk Ramunia and Pengerang in Johor into an oil and gas (O&G) hub. Separately, prime minister Datuk Seri Najib Tun Razak is expected to announce new development and entry point projects in the oil, gas and energy sector on Tuesday. (Source: The Star)

O&G: Technip boosts presence in Malaysia. France-based Technip Group launched its flexible pipe manufacturing facility located in Tanjung Langsat, Johor. Costing EUR140m, the new plant will allow Technip to make further inroads in Asia-Pacific and Middle East subsea oil and gas markets. Technip has already established a long-term strategic collaboration with MISC Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd and two other subsidiaries of Petronas. (Source: Business Times)

MRCB: Construction on Penang Sentral starts next month. Construction works on the RM2.7b Penang Sentral Integrated Transport Hub in Butterworth is expected to begin next month. The project will be undertaken by a joint venture between MRCB and Pelaburan Hartanah Bumiputra Bhd. The first phase comprises an integrated transportation hub with a retail component could start next month and is scheduled for completion by Dec 2013. The second and third phases are commercial components, comprising a commercial hub, including office towers, serviced apartments, a hotel and waterfront amenities, is scheduled for completion 10 years from now. (Source: The Malaysian Reserve)

Transportation: Study on bullet train ready by mid-2011. The feasibility study on the KL-Singapore bullet train project is due to start in January and would be completed by mid-2011 before Malaysia proceeds to approach Singapore. The bullet train (which travels at an average speed of 350-450km/hour) could lower traveling time between the two cities to under two hours. (Source: Business Times)

Transportation: LRT extension jobs to be awarded soon. The government is expected to award the long-awaited light rail transit (LRT) extension project soon, and successful bidders have been short-listed. It is learnt that Bina Puri Holdings Bhd is in the forefront to win the LRT extension job for the Ampang line worth about RM600m. Meanwhile, TRC Synergies Bhd is tipped to bag the main contract for the Kelana Jaya line extension, estimated to be worth between RM900m and RM1b. (Source: The Edge Financial Daily)


RHB Invest Highlights

Top Story

Public Bank:
  • A bank for volatile times.
  • Fair value is RM15.40 from RM14.70. Outperform call reiterated.

Corporate Highlights

  • Key growth areas and targets unchanged.
  • Maintain forecasts, fair value of RM3.60 and Market Perform call.

Notion Vtec:
  • Camera focus.
  • Fair value is raised slightly to RM1.68 from RM1.54. Maintain Underperform.

Technical Highlights

Daily Trading Strategy:
  • Tough resistance near the 10-day SMA.
  • FBM KLCI has to remove both the 10-day and 40-day SMAs before it can return the robust sentiment, amid continuous speculation on more M&A activities in the near term, and optimism ahead of the listing of PetroChem on Friday.
  • On a negative point, a prolonged weakness at below the 40-day SMA near 1,493 will dampen the FBM KLCI’s near-term outlook.
  • Nevertheless, we expect tough resistance at the 10-day SMA near 1,503 in the immediate term

Daily Technical Watch: K. Europlus
  • Follow-through buying momentum likely if it sustains above RM1.08
  • Immediate Support at RM1.08
  • Immediate Resistance at RM1.25


Maybank IB View

Thursday, November 25, 2010

IJM Land / MRCB RM2.97 / RM2.12: Not Rated
A merger of equals

A win-win proposal. The IJML-MRCB merger will result in the largest property group with a potential market value of RM8.9b, a combined landbank of c.7,039 acres, and a combined GDV of RM36b, surpassing UEML-Sunrise's and SP Setia's. The merged entity will have a sizeable 39.8% public spread, hence raising liquidity. An enlarged balance sheet also improves its chances of taking part in the development of government land. IJML's shareholders gain better upside based on the share exchange prices of RM3.65 for IJML and RM2.30 for MRCB.

IJM Corporation RM5.69: Buy
Property merger unlocks value Shariah-compliant

Upgrading target price. RM178m 1HFY11 core net profit (+29% YoY) before RM31m forex translation gain was in line, at 47% of our full-year forecast. No change to our core earnings forecast but we incorporate the RM31m forex gain, raising FY11 bottomline forecast by 6%. We lift our RNAV-based target price to RM6.40 (+16%) after incorporating new IJM Land's (IJML) implied value for its merger with MRCB and higher valuations for the construction business. IJM Corp stays a Buy.

Notion VTEC RM1.63: Buy
Fortune changes, risk abates Shariah-compliant

Upgrade to Buy. 4Q results were better than expected, with 4Q net profit rising 2.8-fold QoQ and EBITDA margin expanding by 10.2-ppt QoQ. We upgrade NVB to a Buy (non-consensus) with an unchanged RM1.95 TP. On balance we believe the negatives have been priced in after a 37% fall in share price following the disastrous 3Q results. Valuations are inexpensive, with a 4-6x FY11-12 PER and improving business outlook.

Mah Sing RM1.79: Buy
Further expand its foothold in Penang Shariah-compliant

Buys land on Penang island. We are positive on the recent land acquisition in Penang island due to its attractive pricing and strategic location. The land is expected to enhance our RNAV by 4.8%. We continue to like Mah Sing given its undemanding valuation, 30% 3-year EPS CAGR and fast turnaround strategy. We lower our forecasts by 0.6-2.3%, but raise RNAV-based TP to RM2.60. Reiterate Buy.

IPO: Careplus Group RM0.23
Small glove-maker turns ambitious Shariah-compliant

Making debut on ACE Market. Careplus, a small latex glove-maker, is scheduled for listing on 6 Dec '10. The company expects capacity-driven earnings growth from FY12 onwards, but we see limited upside to its retail IPO price owing to: (i) fair valuation at its IPO price relative to small sized peers; and (ii) the presence of industry headwinds (i.e. persistently high latex prices, appreciating Ringgit).

The FBM KLCI fell 15.67 points to 1,487.53 yesterday. Due to the significantly weaker tone in the USA last night, we may see the FBM KLCI in a bearish mode today too. Its resistance areas at 1,487 and 1,510 will cap market gains, whilst its weaker support areas are located at 1,465 and 1,480.

Our trading idea for today is a TAKE PROFIT call on LIONIND.

Other Local News
Sunway, SunCity: Shares suspended on merger talks. Shares of Sunway Holdings Bhd and Sunway City Bhd (SunCity) have been suspended from trading for two days since yesterday amid speculation that they may be merged. Both companies are expected to make an announcement today. (Source: Business Times)

Tan Chong: Teana to boost Nissan’s local market share. Edaran Tan Chong Motor Sdn Bhd (ETCM) expects the launch of its new Nissan Teana luxury sedan to boost the company's local market share. The company had already received over 1,000 bookings for the Teana. For the Malaysian market, the Teana will be sold with three engine options 136bhp, 2-litre and 182bhp V6, 2.5-litre which are assembled in Tan Chong Motor's Serendah factory, and the 252bhp V6, 3.5-litre which is fully imported from Japan. (Source: The Star)

Parkson Holdings: Acquires Shantou Parkson for RM37m. Parkson Holdings Bhd, via Hong Kong-listed unit Parkson Retail Group, has acquired 100% interest in Shantou Parkson Commercial Co Ltd for RMB80m (RM37.3m). Shantou Parkson was the owner and operator of the Parkson branded department store at South City Shopping Mall, Shantou City, Guangdong Province, China. (Source: The Star)

YTL, YTL Land: YTL Corp plans revamp of property division. Conglomerate YTL Corp Bhd plans to house all its property development assets and projects under YTL Land & Development Bhd (YTL Land). It would dispose its property assets and projects in Malaysia and Singapore to YTL Land net of outstanding intercompany balances for RM476.1m. (Source: The Star)

Gadang: Bids for more than RM2b jobs. Gadang Holdings Bhd is bidding for several engineering and construction projects totaling more than RM2b. Among the tenders are the proposed development of the Women and Children Hospital in Kuala Lumpur announced under the budget 2011, the 300MW Kimanis power plant in Sabah, 1,000MW Manjung power plant in Perak and the Shah Alam Hospital. (Source: The Edge Financial Daily)

Property: M'sian city apartment prices second lowest in region. The average price of city apartments in Malaysia is the second lowest compared with other countries in the region. Global Property Guide (GPG) said according to its research, only Indonesia offered city apartments that were priced lower than Malaysia. In comparison, the average price of city apartments in Singapore is almost eight times more than in Malaysia, beating even Australian prices, which are almost five times higher than Malaysian city apartments. (Source: The Star)

Market: Bursa plans to attract more SRI funds with ESG index. Bursa Malaysia Bhd plans to attract more Socially Responsible Investment (SRI) funds into Malaysia by constructing the Environment, Social and Governance (ESG) Index in 2012. Bursa Malaysia CEO Datuk Yusli Mohd Yusoff said the exchange is working with various relevant authorities of similar global-based listed indices. (Source: The Malaysian Reserve)


RHBInvest Research Highlights

Wednesday, November 24, 2010

Top Story

Major changes ahead.
Stock picking is still important with news flow remaining one of the key catalysts.

Sector Call

Oct print and TV adex up by 9.0% YoY
No change to our Overweight call on the sector.

Corporate Highlights

To merge with IJM Land.
Maintain Trading Buy. Fair value is RM2.30.

IJM Land:
Thumbs up.
Maintain Outperform and revised fair value of RM3.65.

EON Capital:
Underlying operations coming along nicely.
Fair value is RM7.30. Underperform call.

Mah Sing:
Stocking up landbank.
Fair value is raised to RM2.43 (from RM2.40). Maintain Outperform.

Injection of Shantou Parkson into PRG.
Fair value is maintained at RM7.36. Maintain Outperform.

Technical Highlights

Daily Trading Strategy:
  • Tuning into a “sell” mode.
  • Selling pressure triggered by the strong selldown in the regional markets yesterday.
  • Investors Opted to trim down their holdings on the core bluechips, hence triggering the renewed selling pressure on counters like the banks in late trading yesterday.
  • The FBM KLCI must recover to above the 40-day SMA today to avoid further selldown on the local bourse, technically.
  • However, in view of the fresh political tension in Korea peninsula, plus the nervousness on the possibility of further tightening measures from Beijing, sentiment is likely to turn into a “sell” mode temporarily.
  • On the upside, the immediate key level is at the 40-day SMA of 1,493, while downside is seen at 1,450.

Daily Technical Watch: Maybank
  • Will turn short-term bearish if it dips below the 10-day SMA
  • Immediate Support at RM8.15
  • Immediate Resistance at RM8.89


Uchitec Nine Month Net Profit 140%

Today Uchitec posted nine month net profit 140% as pic above.


Maybank IB Research


3Q10 Real GDP
Further slowdown in growth...

3Q10 real GDP growth slowed to a lower than expected +5.3% YoY (Maybank IB estimate: +6.1% YoY; consensus estimate: +5.9% YoY). Growth was supported by continued growth in consumer and business spending as fiscal stimulus faded and external demand softened. We are placing our current full-year forecasts of 7.5% for 2010 and 6.1% for 2011 under review. Indications are that this year's growth will come in in between our and official forecast (+7%) and next year's growth to likely be in the 5.5% to 6% range.

Plantation Sector: Neutral
A re-look at small caps

Hidden gems. Contrary to market expectations, plantation small caps (RM5b) by 14% YTD but underperformed mid caps (RM1b–RM5b) by 11% YTD. While the overall valuation discount of small caps to mid and big caps have narrowed, there are still attractively valued stocks. We identify four names, MHC Plantations, Kurnia Setia, NPC Resources and TDM.

Automotive: Overweight
Sales rebound in Oct

Oct vehicle sales were stronger than expected with preference for smaller vehicles. We expect 2010's TIV to reach 580,000 units, which implies soft Nov-Dec periods. Nonetheless, new launches will dominate headlines as distributors will build orders for 2011's delivery. Stock-wise, all the companies have performed well this year, up 8.3 - 80.1% YTD, driven by recovery in spending and stronger RM. We are placing our strategy and calls on hold for now pending the Nov results season.

AirAsia RM2.48: Buy
3Q to surprise on strong yields Shariah-compliant

Looking great. AirAsia will release its 3Q10 results on 25th November. 3Q10 is expected to be highly profitable, buoyed by strong passenger growth, high load factors, and positive outlook on yields. We raise our earnings forecasts to account for higher yields, off-setting higher fuel costs. Maintain Buy, with a raised target price of RM2.94 (+23% from previous) based on 10.1x 2011 PER - 10% discount to peers.

CIMB Group Holdings RM8.41: Buy
Regional aspirations on track; upgrade to Buy

RM1b special dividend surprise. An unexpected 13.45sen/sh single-tier dividend totaling RM986m will be paid by 31 Dec 2010 (ex-date: 3 Dec). This suggests that future regulatory capital requirements may be well within CIMB's existing capacity. 9M10 net profit is in line, but we upgrade our 2011-12 earnings forecasts by 7% p.a. after raising our expectations for investment banking and Niaga. 2011 will continue to be a strong year. Upgrade to Buy with a new RM9.50 (+12%) TP.

UMW Holdings RM6.80: Hold
Auto drifts; O&G still drags Shariah-compliant

Auto's positive priced in; concern remains at O&G. Stronger 9M results, largely from auto and Ringgit, led us to lift 2010-12 forecasts by 15% p.a. Correspondingly, our target price is raised by 9% to RM7.20, based on unchanged 12x 2011 PER, in tandem with peers. Our Hold call remains. We are still unconvinced by its O&G's operations - impairment risk for Naga 3, continued losses at WSP. At the same time, we feel that its auto division growth prospect is already priced in.

QL Resources RM5.85: Buy
Scarcity premium now on the agenda? Shariah-compliant

Earnings delivered. As expected, QL chalked up another quarter of more than 20% YoY net profit growth as supply factors turned favourable for the Marine and Livestock divisions. Whilst we retain our earnings forecasts, we raise our TP to RM6.50 (+10%) as we normalise post-FY13 semi-explicit tax rates to FY13’s 15% instead of 20% as QL continues enjoying tax incentives from its expansion.

Dialog Group RM1.44: Buy
Strong visibility; target price raised Shariah-compliant

A fluid start. 1QFY11 earnings account for 26% of our full year forecast. We remain positive on Dialog's business model and direction as it seeks to grow its oil storage operations via the Tj. Langsat and Pengerang bases over the next 10 years. The CTF operations, backed by major oil traders (i.e. Vopak, Trafigura) and PETRONAS (i.e. MISC) should provide sustainable long term earnings, strong cashflows and consistent dividends. Buy with a higher RM1.75 SOP TP (+40%).

The FBM KLCI fell 2.85 points to 1,503.20 yesterday.Due to the weaker tone in the USA last night, we may see the FBM KLCI in a "range trading" mode today. Its resistance areas at 1,503 and 1,520 will cap market gains, whilst its weaker support areas are located at 1,487 and 1,500.

Our trading idea for today is an ACCUMULATE call on HAPSENG.

Other Local News
IJM Land, MRCB: Shares suspended. Market talk of a potential merger involving IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB) has intensified with the suspension of the shares of IJM Land, its parent IJM Corp Bhd and MRCB since 9am yesterday pending a material announcement on a potential corporate exercise. The companies are expected to announce details of the corporate exercise later today. (Source: The Star)

Salcon: Sells stake in unit for RM112m, aims to list unit in HKEx. Integrated water and wastewater engineering company Salcon Bhd has sold a 40% stake in Salcon Water (Asia) Ltd (SalconAsia) to Challenger Emerging Market Infrastructure Fund Pte Ltd (EMIF). SalconAsia holds the company’s water assets in China. Salcon also plans to list SalconAsia on the Hong Kong Stock Exchange (HKEx) in the next two to three years. (Source: The Edge Financial Daily)

Plantation: Introducing higher oil yielding seed. Agricultural Resources Sdn Bhd (AAR) introduced its' higher oil yielding semi-clonal hybrid called "AA Hybrida 1". Compared to Dolly Parton (Dura X Pisifera) which is the standard planting material, AA Hybrida I produces more, but smaller fruit bunches with 20% higher oil yields. (Source: Business Times)

Healthcare: Malaysia to review fees of doctors, private hospitals. The government will review the fees of doctors and private hospitals. The ministry will also set up six more ambulatory (out-patient) care centres under the Tenth Malaysian Plan, from 15 currently. (Source: Business Times)


RHBInvest Research Highlight 23 Nov 2010

Tuesday, November 23, 2010

Top Story

Price war looms, Airport blooms.
Fair value is raised to RM8.02 based on “sum-of-parts”. Maintain Outperform.

Macro View


  • Economic Highlights (published 22 Nov).
  • Real GDP growth slowed down to 5.3% yoy in the 3Q.
  • We expect the country’s exports to slow down in 2011, after a strong rebound in 2010.
  • While exports are likely to slow down, we expect domestic demand to be resilient and will likely hold up at 5.5% in 2011.

Technical Highlights

Daily Trading Strategy: Continue to stay range-bound between the SMAs…
  • The market’s trading sentiment is likely to stay sluggish in the immediate term
  • Regional markets’ sentiment remains uncertain, with the volatility in currencies markets prolong.
  • Investors to adopt further “wait-and-see” strategy before deciding the next course of action.

Daily Technical Watch: RCE Capital
  • Further buying momentum towards the RM0.715 level soon.
  • Immediate support RM0.61
  • Immediate resistance RM0.715


Maybank IB Research

Monday, November 22, 2010


WCT RM3.04: Buy
Earnings delivery in 2011 Shariah-compliant

Maintain Buy. We retain our earnings forecasts for WCT post analyst briefing on its 3Q10 results. Indications are that 2011 will be a good year in terms of earnings delivery - we forecast a 34% growth in net profit. We are also optimistic on job win momentum flowing into 2011, being the first year of the 10th Malaysia Plan implementation. Our target price pegs the stock to 15x 2011 earnings plus a 20sen increment from the new KLIA2 retail concession which will be inked this month-end.

Tan Chong Motor Holdings RM5.62: Sell
Needs to unlock value regionally Shariah-compliant

As anticipated, 3Q results were sequentially weak. With most of the positives priced in, TCM's valuations are no longer cheap vis-a-vis its peers. With no near-term catalyst in sight, TCM is unlikely to excite and should underperform relative to market. Reiterate Sell with a RM5.00 target price, which is based on 12x 2011 EPS.

RCE Capital RM0.625: Buy
Surprises on the upside

Beats expectations. 1HFY11 RM55m net profit (+47% YoY) made up 56% of house RM98m FY11 forecast and 60% of street RM91m. Loan impairment loss was lower than expected. We raise our FY11 net profit forecast by 11% and FY12-13 by 5-7% p.a. Our new TP is RM1.10 (+8%) based on 7x 2011 PER (unchanged) and the market value of its investment in AmFirst REIT (35m units). For its strong delivery track record and growth potential, valuations are low at 4.2x earnings. Buy.

The FBM KLCI rose 9.40-points last week. The obvious support areas for the FBM KLCI are located in the 1,462 to 1,500-zone. The key resistance areas of 1,507 and 1,531 will cap any rebound activity.

Trading idea for today is a SHORT TERM BUY call on KIANJOO.

Other Local News
QSR: Halim Saad eyes QSR. Tan Sri Halim Saad, the former boss at Renong/UEM Group has made an offer to acquire Pizza Hut restaurant operator QSR Brands Bhd's entire business that includes its controlling stake in KFC Holdings (M) Bhd. The board is in the midst of deliberating on the proposal and will make further announcements in due course. (Source: The Star)

CIMB: Opens in Cambodia. CIMB Bank Plc was officially launched after CIMB Group received its license to fully operate its 100%-owned subsidiary in Cambodia. CIMB received approval-in-principle to establish and operate in Cambodia six months ago to offer banking products and services to the nation of 14.5m people. (Source: The Star)

K-Star: Expands footprint in China. K-Star Sports Ltd's wholly owned subsidiary Fujian Jinjiang Dixing Shoes Plastics Co Ltd is expanding its footprint in China by setting up six new wholesale outlets in northern China. K-Star started developing the northern China market in the middle of this year and had set up 19 wholesale points, of which six were in Urumqi in Xinjiang province and the remaining in Russia. In China, Urumqi acts as a major export market as it is situated near neighbouring countries like Russia, Kazakhstan and the Middle East countries. (Source: The Star)

O&G: Total signs PSC, Gazprom buys stake in Gulf of Mexico project. French oil and gas company, Total has signed an agreement with Petroliam Nasional Bhd (Petronas) to acquire a 85% interest in Block SK317B, located about 100km offshore Sarawak. Under the agreement, Total will operate the block with its partner, Petronas Carigali holding the remaining 15% interest. Separately, Gazprom Neft, the oil arm of Russian energy company Gazprom, has signed a deal to acquire a 30% stake in a project operated by Petronas to explore and develop four offshore blocks in the Gulf of Mexico. (Source: Business Times)

E&U: Expansion in solar photovoltaic to generate RM200m in opportunities. The solar photovoltaic (PV) capacity in the country is expected to increase substantially to 11 mega watt (MW) in 2011, generating about RM200m in business opportunities for companies involved in installing solar power generation systems. AWC Bhd's MD, Azmir Merican said that the 11MW capacity would provide for the grid-connected market in the peninsula and the off-grid market in East Malaysia, following the implementation of the feed-in tariff scheme under the Renewable Energy Law next July. AWC set up a joint venture company with Solamas Sdn Bhd to provide solar power integrated services. (Source: The Star)

External reserves: Increased slightly in the first half of November 10. The external reserves has increased to RM326.5b (USD105.8b) as at 15 November 10 from RM324.9b (USD105.3b) on 29 October 10. The latest reserve amount is equivalent to 8.8 months of retained imports and 4.5 times short-term external debt. (Source: Bank Negara)


RHBInvest Research Highlight 22 Nov 2010

Top Story: Axiata

Outlook for regional cellcos is largely stable.
Earnings forecasts maintained.
We reiterate our Outperform call with SOP fair value of RM5.52

Sector Call

Yes unlikely to spark an all-out price war
No change to our Neutral stance on the sector.

Corporate Highlights

Potential upside to integrated complex at KLIA2
Short-listed for the Durkhan Highway 2 project
Fair value is RM2.55. Maintain Underperform.

Offer to buy all of QSR’s business
Fair value on the stock at KFCH at RM5.85.
We are downgrading our call on the stock to Underperform

  • Secures RM15m piling works in Port Dickson
  • Fair value is raised from RM2.35 to RM2.74
  • Maintain Outperform.

Technical Highlights

Daily Trading Strategy:
  • Near-term choppy trend expected
  • It must still surpass the critical 10-day SMA near 1,511, and to remove the 1,524.69 level before it could return to bullishness, in our view.
  • Given that the regional markets’ sentiment remains fragile, local market sentiment is likely to track the regional performance in the near term.

Daily Technical Watch: Tebrau Teguh
  • Bargain hunters to return nearer to RM0.75
  • Immediate Support RM0.765
  • Immediate Resistance RM0.835


Employee KWSP Portion Back to 11%

Friday, November 19, 2010

Starting January 2011, employee KWSP portion switch back to 11% after 2 years ago. Employee has given option whether to maintain 11% or reduce to 8% in 2008.

The employer contribution for their portion still maintain at 12%.

From KWSP website:

EPF Employee Contribution Rate Back to 11 Per Cent January 2011

The Employees Provident Fund (EPF) monthly statutory contribution rate for employees will revert to 11 per cent from 8 per cent with effect from January 2011 wage and the contribution to be paid to the EPF from February 2011 onwards.

The employees’ statutory rate was lowered for a two-year period from 11 per cent to 8 per cent beginning January 2009 to December 2010 wage.

Employers are advised to ensure that the correct amounts are deducted from the employees’ wages based on the new contribution rate and remitted to the EPF starting from February 2011 contributions.

Members who had previously submitted Form KWSP 17A (AHL) Khas/KWSP 17AA Khas to maintain the contribution rate at 11 per cent during the two-year period would not need to take further action.

The employers’ share of the monthly contribution to the EPF remains at 12 per cent.

Employers who need more information may visit the nearest EPF branch, contact EPF Call Centre at 03-8922 6000, or post their enquiries via myEPF website at Enquiry.


Maybank IB Views 19 Nov 2010


  • FBMKLCI 30
  • Out with the old, in with the new

New kid on the block. Petronas Chemicals (PetChem), to be listed on 26 Nov (tentative), will immediately feature as a FBMKLCI 30 stock. At a market value of RM41.6b on listing, it will be the 5th largest stock on Bursa. Financials will remain the largest sector, followed by plantations and telcos. Nestle may find its way back into the index this year-end, replacing Malaysia Airlines - but we think the possibility is remote at this juncture. The revised FBMKLCI 30 line-up (with PetChem) will have a positive impact on our present 2011 YE KLCI target of 1,660.

KNM Group RM0.435: Buy
Exceeds RM2b internal job win target Shariah-compliant

Buy, cheap, laggard. The RM680m new order from Lukoil will take KNM's job wins YTD to RM2.2b, surpassing its RM2b internal target for 2010. This order book trend is positive and suggests that business is recovering. We are Buyers of KNM for its improving fundamentals, inexpensive valuations and being a laggard play to the recovering sector. While interest in this stock may only return when KNM starts to deliver on its earnings, downside is limited as most of the negatives having been priced in.

IOI Corporation RM5.90: Hold
1QFY11: Downstream disappoints Shariah-compliant

Results below expectations. 1QFY11 recurring net profit of RM408m (-10.5% QoQ, +1.1% YoY) was 20% of our FY11 forecast. Upstream and property were in line, but downstream saw significant margin pressure, possibly from unexpected spikes in CPO prices. No dividends were declared this quarter. We retain our earnings forecasts pending a corporate update and maintain our Hold call on the stock.

WCT RM3.02: Buy
Looking beyond 2010 Shariah-compliant

Below expectations. RM99m 9M10 net profit (-13% YoY) made up 66-67% of house 2010 forecast of RM151m and street RM148m. The shortfall came from slower construction works recognition in 3Q10, partially offset by unexpected profits after the final accounts sign-off for overseas jobs. We downgrade our 2010 net profit forecast by 9%, but retain our 2011-12 forecasts and target price (15x 2011 PER target, plus a 20sen enhancement from the new KLIA2 retail concession). Buy.

Kossan Rubber Industries RM3.14: Buy
Good results; bird flu may raise interest Shariah-compliant

Results in line. 9M10 ex-EI net profit of RM89m (+13% YoY) made up 71% of our full-year forecast and 76% of consensus. Results are good considering the bellwethers (i.e. Top Glove, Supermax) reported 17-30% YoY earnings contraction. We maintain our Buy rating on Kossan (TP: RM3.60) as its share price has underperformed its peers and it is the cheapest large cap glove-maker. The sector could see a positive knee-jerk reaction to the new bird flu case in Hong Kong.

CB Industrial Product Holding RM3.55: Hold
Plantations take centre stage in 3Q10 Shariah-compliant

Results above, upgrade to Buy. 3Q10 recurring net profit of RM20m (+55% QoQ, +97% YoY) takes 9M10 net profit to RM45m (+65% YoY), 82% of our previous 2010 forecast. We raise earnings to reflect latest operating trends. CBIP now trades at just 5.5x 2011 earnings and 1sd below its mean PER - compellingly attractive in our view. We raise our target price to RM4.50 and upgrade the stock from 'Hold' to 'Buy'.

The FBM KLCI fell 6.89 points to 1,496.65 yesterday. Due to the firm tone in the USA last night, we may see the FBM KLCI in a "gap-up" mode today too - with initial nibbling activities being trimmed today by pre-weekend profit-taking. Its resistance areas at 1,496 and 1,531 will cap market gains, whilst its weaker support areas are located at 1,487 and 1,495.

Other Local News
AirAsia: To open new Paris-KL route next year. AirAsia is flying to Paris, its second European destination after London, via its long-haul low fare affiliate AirAsia X. The four-times weekly direct flight will commence on Feb 14, 2011 between Paris-Orly International Airport and Kuala Lumpur International Airport's Low Cost Carrier Terminal (LCCT). The new route will be serviced by the Airbus A340 aircraft with a 327 passenger capacity, including 18 premium seats. (Source: The Edge Financial Daily)

Leong Hup, Emivest: Receive Rm426m takeover offer. Leong Hup Holding Bhd and Emivest Bhd have received a takeover offer totaling RM426m from a major shareholder, Emerging Glory Sdn Bhd, to acquire all their assets and liabilities. Leong Hup is a poultry and farming breeding firm while Emivest manufactures animal feed and feed additive premix in Malaysia and Vietnam This comes after the acquisition of Lay Hong Bhd by QL Resources Bhd, and suggests the industry is moving into a merger and acquisition mode. (Source: The Edge Financial Daily)

Alliance: Alliance Financial unit & AIA in tie-up. Alliance Financial Group Bhd's subsidiary Alliance Bank Malaysia Bhd has entered into an agreement with American International Assurance Bhd (AIA) to set up a joint-venture company, AIA AFG Takaful Bhd. Alliance Bank had a 30% stake in the joint venture to carry out family takaful business while AIA had 70%. It said the joint-venture company would be formed with an authorised capital of RM200m and paid-up capital of RM100m. The family takaful business is expected to begin operation in the first quarter of 2011. (Source: The Star)

IPO: XOX awaiting call. XOX Bhd is planning to raise about RM40m in its initial public offering (IPO), to be Malaysia's first full-fledged mobile virtual network operator (MVNO) listed on the local stock exchange. XOX targets the urban Chinese market and offers services through Celcom Axiata Bhd’s network. XoX has more than 250,000 customers, with customers spending an average of RM27 a month. (Source: Business Times)


RHBInvest Research Highlight 19 Nov 2010

Top Story

IJM Plantation:
Highly sensitive to CPO prices.
Fair value is RM2.90. Market Perform.

Sector Call

Rubber Gloves:
First bird flu case detected in Hong Kong since 2003.
Neutral stance on the sector as the near-term outlook remains challenging.

Corporate Highlights

Two more quarters of inventory correction.
Fair value is cut to RM5.17. Downgrade our call to Underperform (from market perform).

Rising raw material prices - Part II
Fair value reduced to RM2.95. Market Perform.

RM670m wins.
Maintain our Underperform call and fair value of RM0.37

Technical Highlights

Daily Trading Strategy:
Investors applying wait-and-see strategy.
However, given the slight downward tick on the 10-day SMA near 1,511 and the poor state of the short-term momentum readings, trading activities are likely to stay under pressure.
We foresee a rangebound trading today as the FBM KLCI fluctuates between the two SMAs (1,490 – 1,511), while most investors staying sideline ahead of the weekend.

Daily Technical Watch: WCT
Continue to trade under pressure in the immediate term
Immediate Support at RM2.80
Immediate Resistance at RM3.20


Things you should never say to a woman

Things you should never say to a woman.

Today I found this article in other blog. Just to sharing with u all.


Save, Invest and Work Hard

“Any economy which saves and invests and works hard always wins out in the future over countries which consume, borrow and spend.” - Jim Rogers


Nokia C6-01 Price at RM1100

As I mentioned last time, Nokia C6-01 price range at RM1000 to RM1300. But today I found at mudah website, the price for the Nokia C6-01 is at RM1100.

Currently only selected shops sell this phone. That's why it's too hard for me to find this new model.


RHBInvest Research Highlight 18 Nov 2010

Thursday, November 18, 2010

op Story

CI Holdings:
Thirst quenching prospects.
We value CIH at RM4.90. Initiate coverage with Outperform.

Corporate Highlights

CSC Steel:
Near-term outlook cloudy, but dividend may surprise to the upside.
Fair value cut to RM2.12. Maintain Outperform.

HL Bank:
Loan growth gained further traction.
Fair value raised to RM11.00, from RM10.70. Maintain Outperform.

Above expectation.
Maintain Outperform, with an unchanged fair value of RM6.20.

Expect a weaker 4Q, concession pending renewal.
Fair value has been lowered to RM3.77 (from RM3.82). Outperform call on the stock.
Media Prima:
3Q Earnings boosted by continued recovery in adex.
Fair value is revised to RM2.82 from RM2.75. Reiterate Outperform.

Lower contribution from higher margin packages.
Market Perform call with a fair value of RM6.35.

Technical Highlights

Daily Trading Strategy:
  • Expect a knee-jerk reaction today.
  • Trading sentiment is suspected to stay negatively biased in the near term.
  • Given the recent sharp falls in the regional markets, and the negative news flows on more tightening measures in China to tame inflation, as well as the renewed debt crisis in Europe.
  • Investors are expected to stay defensive in sessions ahead, in our view.
  • The index should seek support at the 40-day SMA near 1,489.
  • Losing 1,450 will be seen as a trigger to a major correction phase on the FBM KLCI.

Daily Technical Watch: Karambunai Corp
  • Sentiment remains negatively biased
  • Immediate Support at RM0.18
  • Immediate Resistance at RM0.225


Maybank IB Views 18 Nov 2010

Sime Darby RM8.80: Buy
Post-provision divestments and law suits Shariah-compliant

Still our pick among the big caps. Two highlights arose from Sime's AGM: 1) the group will pursue legal action on the Energy & Utilities fiasco, and 2) there are no plans to spin off the plantations division yet. We believe that Sime, being a major laggard YTD, will play catch up in a liquidity-induced market rally. Reiterate Buy with a price target of RM10.50.

Gamuda RM3.55: Buy
Responds to stop-work order Shariah-compliant

Maintain Buy with a RNAV-based RM4.38 TP. MMC-Gamuda's swift response to the Penang state government's stop-work order for the electrified double tracking rail project should ease concerns which had affected Gamuda's share price last Friday. Looking beyond this setback, we think there is a larger positive for investors to look forward to - the government's decision on Greater KL's MRT project is likely to favour Gamuda. The stock, which has yet to fully recover from last Friday's drop, offers a good 24% upside to our target

Sapura Crest Petroleum RM2.60: Buy
To grow assets; eyes regional space

Maintain Buy; target price lifted to RM3.05 (+17%). SapCrest now expects stronger earnings from its T-10 rig contract extension, and we raise our FY12 EPS forecast by 5% as a result. There is upside to our 3-year profit CAGR of 12% if asset expansion plans to complement its regional agenda take off. We see opportunities in the rigs and installation of pipeline and facilities (IPF) businesses that SapCrest, with its domestic dominance, track record, regional partnerships and balance sheet, can tap.

Malaysian Airline System RM2.09: Buy
3Q to surprise due to yields, load factor

A promising quarter. MAS will release its 3Q10 results on 25 Nov. 3Q10 is expected to be profitable, buoyed by a high load factor of 79% (+1.9 ppt YoY), capacity growth of 7.8% YoY and a positive outlook on yields. We tweak our earnings forecasts to account for higher yields and fuel prices. Maintain Buy with a target price of RM2.61 based on 13.8x 2011 PER - 15% premium to global airlines - after taking into account its strong profit growth prospects for 2011-12.

Media Prima Berhad RM2.22: Buy
Prime performer

Dividend policy raised. RM51m 3Q net profit ex-exceptionals (+60% YoY/+64% QoQ) took 9M to RM111m (+177% YtD). We expect a stronger 4Q as revenue momentum continues and the tax rate normalizes. The company raised its dividend policy and declared an interim 4 sen net DPS. Buy, for market-leading businesses which we expect will drive 15% p.a. EPS growth and support growing dividends.

The FBM KLCI rose marginally by 1.98 points to 1,503.54 Tuesday. Its resistance areas at 1,503 and 1,531 will cap market gains, whilst its weaker support areas are located at 1,488 and 1,501.

Trading idea for today is a TAKE PROFIT call on AMMB.


Stocks to watch: Sime Darby, Media Prima, MPI, BDRB

KUALA LUMPUR: SIME DARBY BHD will be among the stocks to be in focus on Thursday, Nov 18 after announcing board changes, plans to divest its non-core business and its plan to return to profitability.

Other stocks to watch are MEDIA PRIMA BHD, MALAYSIAN PACIFIC INDUSTRIES and BANDAR RAYA DEVELOPMENTS BHD following their recent corporate results on Tuesday. TIME DOTCOM BHD, whose shares fell sharply on Tuesday after announcing its corporate revamp but included a share capital reduction and share capital consolidation, could see extended selling pressure.

Sentiment would also be cautious despite the late gains on Tuesday, but the broader market displayed rising profit taking. With the settlement date on Thursday after the heavy trading volume last week, punters would have to pay up.

At the regional markets, Shanghai and Hong Kong stocks fell to multi-week lows on Wednesday, Nov 17, on worries about how Beijing will tackle inflation including a rate rise as early as this week. After the market closed, the China cabinet said it will take forceful measures to stabilise prices and it will increase supplies of grain, oil and sugar from the country's reserves.

While Malaysia, Singapore and Jakarta were closed, other Southeast Asian stock markets ended weaker on Wednesday, continuing a losing trend on foreign outflows, worries over euro zone debt, fears of a rise in Chinese interest rates and talk over capital controls. Foreign selling hit Thailand and the Philippines as foreign institutions cashed in profits, although local retail investors were on the buying side.

At Bursa Malaysia, Sime Darby would see trading interest after the conglomerate said it was pursuing legal action in matters pertaining to losses suffered at the group’s energy & utilities division (E&U Division). Other surprises at Tuesday’s AGM were six members of the board who did not seek reelection while one resigned. However, its acting president and group chief executive Datuk Mohd Bakke Salleh said its first quarter results were in the black. The earnings are to be announced on Nov 25.

EMAS KIARA INDUSTRIES BHD, whose share price rallied after proposing to dispose of its geosynthetic manufacturing business for RM100 million, did see some concerns raised by Malaysian Rating Corp (MARC).

MARC said the MARCWatch on Emas Kiara’s RM80 million debt notes reflected the possibility that the transaction may not proceed as expected and the uncertainties that it would generate with respect to the operating profile and earnings generation ability of Emas Kiara following the disposal of its core operating business

Media Prima posted earnings of RM71.87 million for the third quarter ended Sept 30, 2010 compared with net profit of RM17.26 million a year ago. Its revenue was RM416.75 million compared with RM206.35 million a year ago. It declared a dividend of four sen a share.

For the nine-months period, net revenue exceed the RM1 billion mark for the first time and profit after tax and minority interest from continuing operations grew from RM39 million in 3Q FY2009 to RM154 million for the same period in 2010, with strong contributions from all media platforms. Its EBITDA margin, which grew from 20% to 24% due to the increase in revenue and effective cost control measures.

“Excluding the negative goodwill arising from the acquisition of The New Straits Times Berhad (NSTP), and other exceptional items, net revenue grew by 23.3% while PATAMI from continuing operations recorded an increase from RM28.6 million for the third quarter of 2009 to RM63.1 million for the same period in 2010,” it said.

MPI’s 1Q earnings rose to RM25.83 million from RM17.77 million a year ago while revenue rose to RM370.45 million from RM312.32 million. It declared an interim dividend of 10 sen a share. The chip makers said the better performance were due to higher sales in the quarter but this was partially offset by the appreciation of the ringgit against the US dollar.

BDRB swung into the red in the thid quarter with net loss of RM745,000 compared with net profit of RM40.92 million a year ago due to the inclusion of loss in a jointly controlled entity and higher expenses.

Revenue shrunk 52% to RM127.59 million from RM267.47 million as both property and manufacturing divisions reported lower revenues.

BDRB said the property division sold more PROPERTIES with the well-received previews of its new projects: 6 CapSquare in Kuala Lumpur and Straits View Residences in Johor. However, there was little progress income contribution as both these projects were at early stages of CONSTRUCTION [], whilst there were few remaining units of the completed One Menerung project available for sale.

Third-quarter revenue from the manufacturing division under MIECO CHIPBOARD BHD [] (MIECO) was RM42.0 million, 11% lower against RM47.1 million a year ago mainly due to lower export sales of particleboard. The decline in export sales was mitigated by higher domestic demand and more sales of value added products. MIECO recorded pre-tax profit of RM1.6 million in third-quarter 2010, an increase of 45% when compared to RM1.1 million a year ago, which was partly attributable to unrealised foreign exchange gains.

source: theedgemalaysia


Maybank Invest Daily Update

Tuesday, November 16, 2010

  • The FBM KLCI rose marginally by 1.75 points to 1,501.56 yesterday. Its resistance area at 1,503 and 1,531 will cap market gains, whilst its weaker support areas are located at 1,486 and 1,500.

Other Local News
TdC: In RM339m deal to transform into regional player. Time dotcom Bhd (TdC) is undertaking a RM339m acquisition exercise of three companies in the telecommunication services and infrastructure industry. TdC would partly own Unity Cable system, a 9,620km Japan-to-US submarine cable through the acquisition of Global Transit Ltd Labuan (GTL). This will be complemented with acquisition of Global Transit Communications Sdn Bhd (GTC) that enables TdC to enter the international submarine cable business and tap into GTC's regional wholesale customer base. On the other hand, acquiring AIMS Group is targeted to penetrate the fast-growing hosting and co-location businesses. AIMS is one of the leading network neutral data centres in Southeast Asia hosting more than 188 telcos and service providers. (Source: The Edge Financial Daily)

CIMB: CIMB Niaga to raise RM527m. PT Bank CIMB Niaga expects to raise 1.5t rupiah (about RM527m) via a rights issue of 1.4b shares at 1,065 rupiah (37.4 sen) per share next month. (Source: The Star)

MAS: Expects KK hub to contribute up to RM100m profit. Malaysian Airline System Bhd (MAS) expects its operations from Kota Kinabalu, Sabah to contribute between RM60m to RM100m annually to group net profit. MAS intends to increase flight frequencies on existing routes and also introduce new routes from Kota Kinabalu. (Source: The Edge Financial Daily)

Media Prima, YTL Comms: Hybrid TV gets content boost. YTL Communications Sdn Bhd (YTL Comms) will host RTM and Media Prima group channels on its hybrid television slated for launch in November 2011. The hybrid TV would cost RM1b to RM2b to roll out. (Source: The Star)

Kencana: Unit gets RM275m Sarawak Shell contracts. Kencana Petroleum Bhd's whole owned subsidiary, Kencana HL Sdn Bhd (KHL), has secured contracts worth RM275m from Sarawak Shell Bhd (SSB) for the fabrication of compression modules and tie-in modifications. These one-off construction contracts are expected to be completed by the first quarter of 2012. (Source: The Edge Financial Daily)

IPO: China firm Sozo Global to list on Bursa. Another China based company, Sozo Global Ltd, is expected to make a debut on the Main Market of Bursa Malaysia. Agro Treasures which is an outsourced fund initiated by Khazanah Nasional Bhd is the company's anchor investor, holding 10.4% equity stake in the food maker from northeast China's Shandong province. Sozo entered into an underwriting agreement with AmInvestment Bank Bhd and JF Apex Securities Bhd in conjunction for its IPO offer. (Source: The Edge Financial Daily)


Jusco Ipoh - Nokia C6-01 Still not around

Went to Jaya Jusco Ipoh yesterday. Find all the way the Nokia C6-01 at all outlets. But they said the Nokia model still not arrived. When I can get the new model???

Yesterday is the last day Jusco give extra discount until 15%. Bought some clothes for my family. We ate at Pizza Hut. Don't know where to find a good food there.


RHBInvest Research Highlights 16th November 2010

Top Story

  • Stable outlook.
  • We reiterate our Outperform call with fair value of RM5.52.

Macro View

Economic Growth:
  • Slowed down in the 3Q and will likely continue into 1H 2011.
  • We expect real GDP growth to slow down to 5.0% in 2011, from +7.3% estimated for 2010.

Corporate Highlights

  • One more in the bag.
  • Fair value has been raised to RM2.31. Upgrade to Outperform (from market perform previously)

Emas Kiara:
  • Exiting core geosynthetics business.
  • Fair value rationalised to Trading Buy and RM1.26 (from outperform and RM1.52 previously).
  • Cease coverage on the stock.

  • In line with expectations.
  • Fair value estimate is thus reduced to RM7.36 (RM7.76 previously). Maintain Outperform.

Below expectations but larger special dividend makes up for it.
Fair value estimate to RM8.30 (RM8.45 previously). Maintain Market Perform.

Technical Highlights

Daily Trading Strategy:
  • Trading sentiment to remain sluggish.
  • Technically, the closing with a small positive candle signals a chance of a further rebound in the immediate term.
  • In fact, given the poor technical readings overall, it could risk losing the 1,500 psychological level if the sentiment fails to improve significantly.
  • A key support is now seen at the previous breakout point of 1,450.
  • Breaching this level will confirm a major correction phase and potentially press the index towards a lower support at 1,390

Daily Technical Watch: Time Eng
  • Further weakness will force a revisit to the RM0.50 important level.
  • Immediate Support at RM0.50
  • Immediate Resistance at RM0.55


OSK buy call on Parkson

OSK buy call on Parkson with a target price at RM6.64. RHB invest still maintain the fair value of Parkson at RM7.72. Currently the share trading at RM5.78.


Timecom fall 14cents in the early trade this morning

Timecom share fall sharply in the early trade this morning

Timecom fall 14cents in the early trade this morning after it proposed a corporate exercise but investors were unhappy with the share capital reduction and share consolidation.


Stock Counter that Maybank Recommended

The following are the shares that recommended by Maybank:

Dialog Group Berhad , since its commencement in 1984, the Company has grown into one of Malaysia's leading integrated specialist technical services providers to the oil, gas and petrochemical industry. The Company jointly built, owned and operated Kertih and Langsat Terminal. Buy at RM1.46 and price target is RM1.72.

Favelle Favco Berhad , reputation for building the world's fastest cranes has cemented the Company's position in the market for super high rise buildings having constructed 9 out of 10 of the worlds' tallest buildings ever built. Buy at RM1.14 and price target is RM1.42.

Java Berhad , the company that has an exclusive rights to harvest logs from 55,000ha of timber concession areas in Sabah. Buy at RM0.63 and price target is RM0.75.

Hap Seng Plantations Holdings Berhad , the company that is principally engaged in the cultivation of oil palm and processing of fresh fruit bunches, having a combined area of 37,630 hectares located in Lahad Datu, Sandakan and Tawau. Buy at RM3.02 and price target is RM3.40.


RHBInvest Research Highlights

Top Story

First Resources

  • Significant turnaround from.
  • Fair value is trimmed to S$1.60 (from S$1.70). Maintain Outperform.
Corporate Highlights

Hua Yang
  • In the right affordable housing segment.
  • Fair value is RM1.16. Not rated.
  • Penang issues stop-work order against double-tracking project.
  • Fair value is RM4.51. Maintain Trading Buy.

Genting Bhd
  • One-off gain of RM390m.
  • Fair value for Genting is RM12.45 (from RM12.75). Maintain Outperform.

  • PRG 3QFY12/10 results slightly below expectations.
  • Fair value is unchanged at RM7.72. Maintain Outperform.

Tan Chong
  • Spreading its wings to the east.
  • Maintain fair value at RM6.16. Market Perform.

  • Off to a decent start.
  • Fair value is RM10.40. Maintain Outperform.

  • Another strong quarter.
  • Fair value is RM7.26 (from RM6.95) Maintain Outperform.

CSC Steel
  • 3QFY12/10 performance impacted by inventory write-down.
  • Fair value is RM2.33. Maintain Outperform.

Technical Highlights

Daily Trading Strategy
  • Cautious pending clearer regional performance.
  • FBM KLCI’s bearish technical readings continued amid the bearish reversal in the regional markets that responded negatively to the China markets’ unexpected 5% plunge.
  • If the index fails to recapture the psychological level of 1,500 and 10-day SMA of 1,513 soon, chances are high for it to continue heading downward to below the 40-day SMA near 1,488.
  • Key support is at 1,450, while the resistance is seen at the 10-day SMA for this week

Daily Technical Watch: Genting
  • Negative “double sells” signal on the indicators.
  • Immediate Support at RM9.57
  • Immediate Resistance at RM10.60

Weekly Trading Idea: Salcon
  • A chance to accumulate near RM0.75
  • Strategy: Buy on weakness at above RM0.75.
  • Immediate Resistance at RM0.89
  • Immediate Support at RM0.75
  • Exit: Cut loss if it loses the 10-day and 40-day SMAs


Nokia C6-01 Hands-on

Monday, November 15, 2010

Phone Arena brings you its first hands-on impression of the Nokia C6-01.
The Nokia C6-01 sits just below the C7, offering the same key features with two main differences: no internal memory and a smaller screen. Both of these detracting features are somewhat remedied by the fact ...

More details at phonearena.


21 Tactics to Increase Blog Traffic

21 Tactics to Increase Blog Traffic

  1. Choose the Right Blog Software (or Custom Build)
  2. Host Your Blog Directly on Your Domain
  3. Write Title Tags with Two Audiences in Mind
  4. Participate at Related Forums & Blogs
  5. Tag Your Content
  6. Launch Without Comments (and Add Them Later)
  7. Don't Jump on the Bandwagon
  8. Link Intelligently
  9. Invite Guest Bloggers
  10. Eschew Advertising (Until You're Popular)
  11. Go Beyond Text in Your Posts
  12. Cover Topics that Need Attention
  13. Pay Attention to Your Analytics
  14. Use a Human Voice
  15. Archive Effectively
  16. Implement Smart URLs
  17. Reveal as Much as Possible
  18. Only One Post in Twenty Can Be Linkbait
  19. Make Effective Use of High Traffic Days
  20. Create Expectations and Fulfill Them
  21. Build a Brand
This great post from the subject expert seomoz which we can learn to increase our blog traffic. I will try to find out other articles related to blogging in the next coming post.


Tan Chong Motor to venture into luxury cars manufacturing

Tan Chong Motor Holding Sdn Bhd will invest RM285 billion to manufacture and assemble luxury passenger cars at the Kota Kinabalu Industrial Park in Sabah.

Tan Chong said on Friday, Nov 12 it had received an approval from the Ministry of International Trade and Industry for a manufacturing licence at the industrial park to manufacture and assemble luxury passenger vehicles and commercial vehicles.

More details at

Tan Chong currently trading at RM5.39 on last Friday. Below I attached the Tan Chong weekly chart.

Tan Chong weekly chart view


More on New Toyota Corolla Altis

A supertanker is huge and long and changing course takes a while. Toyota has often been compared to this mega seagoing vessel because it has not always been quick in changing strategies or coming out with new product developments. This is not to say that the company is not innovative but its size does not permit it to be nimble like smaller companies which can react more quickly to market situations. But once Toyota has made the decision to 'change course' or respond to a market condition, it does so with 'forcefully' and that's what rivals fear.

The midterm revision to the Corolla could be considered an example of Toyota's 'course change' to restore the class-leading position of the model. Among the best-selling models in the world in terms of sheer numbers produced since it was introduced in 1966, the Corolla is no longer No. 1 in Japan (a position it held for decades) and in most markets, it is also not as dominant as it used to be. Many believe it continues to be popular more because it is a Toyota than because it is a Corolla.

The major upgrade for the current Corolla generation, to be launched in Malaysia at the end of this month, is under the bonnet where a new engine series is introduced across the range and extended to include a 2-litre variant. The ZZ series is replaced by the new all-aluminium ZR series that has dual variable valve timing with intelligence (VVT-i) and Acoustic Control Induction System (ACIS) to enhance performance across the engine speed range (but the 1.6-litre version does not have ACIS). While the 1.6-litre version (120 ps, 154Nm of torque) continues with a 4-speed automatic transmission, the new 1.8-litre (140 ps, 174Nm of torque) and 2.0-litre (147 ps, 187Nm of torque) Corollas get a 7-speed continuously-variable transmission (Super CVT-i).

Dual VVT-i is an advancement of VVT-i as it provides continuously variable valve timing on the exhaust valves as well. As most readers will know, variable valve timing (VVT) controls valve opening and closing so as to optimize power output and enhance fuel efficiency. Most VVT systems operate only on the intake side but the more expensive cars have had dual VVT for some time. In Toyota's case, the enhanced mechanism was first used in the 1998 Toyota Altezza (Lexus IS) and then became commonplace in the high-end Toyota models and all Lexus models.

The Super CVT-i for the new Corolla 1.8/2.0 is made by a Toyota subsidiary and is said to be a robust steel-belted unit with a fully-electronic hydraulic system.

The exterior looks are unchanged except for the usual alterations in areas like the grille, bumpers and rear lights. In a further effort to 'liven up' the image of the Corolla, a sportier styling theme was used. The Corolla 1.8/2.0 have more open alloy rims with 5 spokes instead of 10 spokes and the Corolla 2.0 gets powerful HID headlights with smoked bezel treatment. A slim rear spoiler is also fitted for this top version.

The interior layout is unchanged but unlike the exterior attempt at sportiness, the cabin has been given more refinement to add a 'luxurious feel'. The wood trim used is said to give a sense of 'real wood' with a darker, less glossy finish. The cheaper versions have fabric upholstery while the two top versions (1.8G/2.0V) have perforated leather.

The steering wheel is changed to the 3-spoke flat-bottomed type (rather like the one in the LF-A supercar) for the Corolla 2.0V which also gets cruise control. This version as well as the 1.8-litre versions have audio control buttons on the steering wheel.
The Optitron instrument panel (1.8G/2.0V) has the same looks but the graphics are slightly changed to give a more '3D' appearance. Illumination has been changed from character illumination to illumination of the whole meter surface. There's also a little ECO light which helps the driver to operate the Corolla more economically.

ESTIMATED PRICES (with insurance and roadtax)
1.6E- RM105,990
1.8E- RM112,990
1.8G- RM122,990
2.0V- RM131,990

Source: Autocar Asean & Motor Trader

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About This Blog

To learn better Bursa Malaysia Stock Market & build up My Portfolio.

Current stock in my portfolio:
1) Hupseng
2) Glomac
3) Masteel
4) Supermax
5) Cocoland
6) Xinquan

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