Maybank IB Views

RESULTS REVIEW
Gamuda RM3.83: Buy
No surprises in 1Q, MRT in the bag ! Shariah-compliant

Positive big win. RM88.5m 1QFY11 net profit (+11% YoY) is 25% of our full-year forecast and 23% of consensus. Construction and property drove earnings uptrend. The award of the Greater KL MRT project delivery partner (PDP) role to MMC-Gamuda is positive, to potentially drive mid term earnings. No change to our earnings forecasts for now, while we have already imputed a 50sen impact from the MRT project in our RM4.45 RNAV-based target price. Maintain Buy.


COMPANY UPDATE
IJM Corporation RM6.27: Buy
Another major win; MRT, LRT jobs ahead? Shariah-compliant

Replenishing nicely. A new RM461m building works contract has lifted IJM's FY11-YTD job wins to RM1.61b, closing in to our RM2b estimate for FY11. No change to our earnings forecasts. Last Friday's Greater KL MRT project go-ahead and the remaining packages of the LRT extension works may benefit IJM, based on its works experience. The stock remains a Buy with a RM6.40 RNAV-based TP.


Technicals
The FBM KLCI lost 7.40-points and closed at 1,499.28 last week. The obvious support areas for the FBM KLCI are located in the 1,474 to 1,495-zone. The key resistance areas of 1,499 and 1,531 may cap any rebound activity.


Other Local News
EPIC: Ambitious plans for Tasik Kenyir. Eastern Pacific Industrial Corp Bhd (EPIC) has been granted the project to transform Terengganu's Tasik Kenyir, the largest man-made lake in Southeast Asia, into a duty-free shopper's paradise. This is part of the redevelopment plan to turn Tasik Kenyir, which will attain a duty-free status by the end of 2012, into a major tourist spot. (Source: The Star)

Genting Group: Gets nod for Vietnam venture, eyes Sri Lanka. The JV between Genting Group and a Vietnam fund manger VinaCapital has obtained approval from the central government for a USD4b (RM12.5b) casino resort project in Hoi An city, Vietnam. The large scale project features a five-star hotel, resort villas and a casino. Genting Group is also exploring the setting up of a casino in Sri Lanka, as its parliament recently passed the Gambling (Special Provision) Bill to legalise gaming. (Source: The Edge Financial Weekly)

Sime Darby: Culprits in Sime's RM2.1b losses to face full brunt of the law. The Malaysian Anti-Corruption Commission (MACC) has found several "elements of fraud" in Sime Darby Berhad and has shared its findings with police and the Companies Commission (SSM) for them to initiate action. Sime Darby was found to have breached several provisions under the Penal Code, the Companies Act and the Anti-Corruption Act 2009. (Source: The Star)

DiGi: Plans to spend RM700m in capex next year. DiGi.com Bhd will invest RM700m in 2011 in capital expenditure, focusing on enhancing data and internet rather than voice services. Revenue growth is expected to be a high single digit to 10% with the expanding contribution from data and Internet business. (Source: The Star)

RHBCap: EPF may sell 9% in RHBCap. The Employees Provident Fund (EPF) is planning to sell another 9% stake in RHB Capital Bhd to a diverse group of institutional fund managers. The senior management of RHB Banking Group participated in roadshows in the region and in London and New York to meet foreign investors, mostly institutional fund, for the divestment. (Source: The Edge Financial Weekly)

Kencana: JV with Petrofac may bag Berantai job. Kencana Petroleum Bhd and its technical partner London-based Petrofac Ltd have emerged as the front runners to bag the exploration of the Berantai oil and gas field at PM309, off the coast of Peninsular Malaysia. Kencana and Petrofac may opt for either a processing platform or a standalone development, utilizing a floating production, storage and offloading (FSPO) vessel. (Source: The Edge Financial Weekly)

Conglo: JCorp seeks to remove Muhammad Ali. Johor Corp (JCorp) is seeking to remove Tan Sri Muhammad Ali Hashim, its previous head for 18 years, from the boards of three listed companies it has direct stakes in. JCorp has called for EGMs at Kulim (M) Bhd, KPJ Healthcare Bhd and Damansara Realty Bhd (DRealty) for this purpose. (Source: The Star)

Scomi Marine: Unit to sell foooour logistic firms. Scomi Marine Bhd (SMB) unit Scomi Marine Services Pte Ltd has proposed to sell four companies to its 80.5%-owned subsidiary PT Rig Tenders Indonesia Tbk for IDR323.1b (RM538.3m) in a group-related corporate exercise. The four companies Scomi Marine Services is disposing of (its entire equity interest) are CH Logistics Pte Ltd, CH Ship Management Pte Ltd, Grundtvig Marine Pte Ltd and Goldship Private Ltd. (Source: The Star)

KPJ: Shareholders approve hospitals sale. KPJ Healthcare Bhd's shareholders have approved the disposal of three hospitals to the company's associate Al-Aqar KPJ Real Estate Investment Trust (REIT) for RM138.8m. KPJ, a 48.4% associate of Johor Corp, has a 43% stake in Al-Aqar KPJ REIT. The three hospitals being sold were the Bandar Baru Klang Specialist Hospital and the Kluang Utama Specialist Hospital in Malaysia as well as the Rumah Sakit Bumi Serpong Damai hospital in Jakarta. (Source: The Star)