Maybank IB Views

INITIATING COVERAGE
Media Chinese International Limited RM0.875: Buy
Ride this dragon Shariah-compliant

Initiate coverage with a Buy call and RM1.22 TP. We like Media Chinese International (MCIL) for its dominance in the Chinese newspaper segment. With growing circulation, it will be able to capture a larger share of newspaper adex. Trading at an attractive 10x CY11 PER (lowest among the media stocks) and offering a decent 5.3% net dividend yield (highest among peers), MCIL offers value. Investors can also expect M&As or higher dividends for more upside potential.


Technicals
The FBM KLCI rose 10.81 points to 1,505.33 on Monday. Its resistance areas of 1,505 and 1,541 will cap market gains, whilst the weaker support areas are located at 1,474 and 1,500.

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


Other Local News
AMMB: EPF accumulating shares in AMMB. The Employees’ Provident Fund (EPF) has been accumulating shares in AMMB Holdings Bhd recently, increasing its stake in AMMB by 11.1% to 12.93% in AMMB. (Source: The Edge Financial Daily)

Oil & Gas: Petronas finds new O&G fields offshore Sarawak. Petronas has made a major oil and gas (Q&G) discovery from two wells that have the potential of producing both oil and gas in offshore Sarawak. The preliminary evaluation indicated about 100m stock tank barrels (mmstb) of oil and 0.2 trillion standard cubic feet (tscf) of gas in place respectively. (Source: Business Times)

Property: Race to let out office space. Competition among lessors of office space in Kuala Lumpur is expected to intensify this year, with average rental of office space in the business district projected to remain unchanged at USD24.31 (USD1 = RM3.05) per sq ft a year. This brings the total stock of office space in the area to 31.1m sq ft compared with 28.1m sq ft in 2010. (Source: Business Times)

Mining: Canadian miner to speed up Pahang ops. Monument Mining Ltd, a Canadian gold mining and exploration company, plans to buy two new drill rigs for USD1m (RM3.05m) to speed up its current exploration programmes in Pahang. Monument owns Selinsing gold mine, Damar Buffalo Reef and Famehub in Pahang, within the central gold belt district of Malaysia. (Source: Business Times)

Government: Sarawak assembly unlikely to be dissolved this week, says Taib. Sarawak Chief Minister Tan Sri Abdul Taib Mahmud yesterday said the state legislative assembly will not be dissolved by this week to pave way for the state election. (Source: The Edge Financial Daily)