RHBInvest Research

Top Story

VS Industry:

• Vibrant sales ahead
• Maintain forecasts and Outperform call with a fair value of RM2.24.

Sector Call


Telecom:

• Maxis to ride on TM’s HSBB network
• TM benefits from a higher utilisation rate of its HSBB network, which leads to more wholesale revenue.
• Expect Maxis to focus on providing content via bundling, instead of competing head-on with TM in offering high speed Internet access.
• No change to our Overweight call on the sector.

Corporate Highlights


KLK:
To subscribe for Yule Catto rights issue
Fair value is raised to RM24.75 (from RM24.50). Maintain Outperform.

KNM:

• Going to Sabah
• The company is establishing a JV with Petrosab Logistik for a total initial investment outlay of RM51k.
• Positive on the JV given that the tie-up will improve KNM’s success rate for any potential contracts in the state.
• Raised our FY11-12 core EPS by 15.1% and 12.5% respectively
• Maintain our Outperform call on the stock with an upgraded target price of RM3.09/share

WCT:

• A second property jv project in Iskandar
• Fair value is RM2.55. Maintain Underperform.

Hiap Teck:

• 1QFY07/11 in the red due to lower margins
• Fair value is maintained at RM1.18 based on 7x CY11 EPS of 16.9 sen.

Technical Highlights

Daily Trading Strategy:

• Our technical outlook on the FBM KLCI remains on a negative bias.
• Further supports are seen near the recent low of 1,474 and 1,450, while the overhead resistance is at 1,524 and 1,532.

Daily Technical Watch: AMMB

• Short-term upswing remains intact if it sustains at above RM6.50…
• Immediate Support = RM6.50
• Immediate Resistance = RM7.32