RHBInvest Research

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TNB – Bracing for higher coal prices
Expected to release its 1QFY11 results on 19 Jan at around RM700-800m
Assuming Nov ‘10 electricity unit sales was sustained yoy, estimate 1QFY11 electricity unit sales to grow 3% yoy
Expect 1QFY11 total operating cost to remain stable
Market Perform with FV of RM7.50


Corporate Highlights


ViTrox:
Acquire US-based Agilent and has been able to improve the performance of the equipment and cut per unit costs
Forecast FY10-13 net profit to grow 1,103.4%, 40.5% and 34.9% p.a. respectively
Derived an indicative fair value of RM1.72/share



SP Setia:
Proposed placement and bonus issue
On a proforma basis, SP Setia’s outstanding shares and shareholders’ fund could be enlarged to 2.08bn and RM4.12bn
FY11-13 EPS is adjusted lower due to larger share base
Outperform with fairvalue of RM7.39


Freight:
Acquiring a warehouse for RM14.5m
The acquisition will raise FM’s net debt and net gearing
Maintain Outperform with fair value of RM1.57


Axis REIT:
4Q10 realised net profit was in line with our expectation and consensus estimates
Announced its proposed disposal of Axis North Port LC1 in Klang for RM14.5m cash
Maintain Outperform with fair value of RM2.71