Maybank IB Views

RESULTS REVIEW
Malaysia Airports Holdings RM6.20: Buy
Accountants and Taxman Spoilt an Otherwise Fantastic Year!

Below estimate. RM378m (+0.4%YoY) 2010 recurring net income was 12% below our forecast and 2% above of consensus. There was a host of accounting treatment items and a substantially higher than statutory tax rate which masks the true performance of an otherwise a fantastic year. Nonetheless, we look forward to a promising 2011 as we enter the fourth year of the aviation up-cycle underpinned by strong GDP growth, global trade and tourism boom. Maintain Buy, no change to our RM7.12/share DCF-based target price.


IOI Corporation RM5.71: Hold
Largely priced in Shariah-compliant

In line. RM920m 1HFY11 recurring net profit (+14% YoY) is 45% of our full-year forecast. Reported RM1.02b net profit (+8% YoY) is also within street's expectations at 46% of consensus full-year estimate. We raise our FY11 net profit forecast by 9% after imputing for stronger average CPO price of RM3,500/t in 2H (1H: RM2,800/t). Our sum-of-parts based target price is marginally lifted to RM6.35 (+5sen).


Dialog Group RM2.13: Buy
On track Shariah-compliant

Pengerang CTF & marginal field projects are catalysts. Dialog's 2QFY11 net profit of RM36m (+9% QoQ) took 1H earnings to RM69m (+24% YoY), on track to meet our forecasts. We remain optimistic about Dialog's long-term growth prospects, driven by its CTF projects in Pengerang. Dialog is also touted to be in the running to co-develop PETRONAS' marginal field projects, a major positive in our view. Maintain Buy with an unchanged RM2.60 SOP target price.


Technicals
The FBM KLCI traded mixed to finally close higher by 0.97 points to 1,506.30 yesterday. Its resistance areas of 1,506 and 1,541 will cap market gains, whilst the weaker support areas are located at 1,480 and 1,504.

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


Other Local News
Sime Darby: To challenge suit by Abu Dhabi firm. Sime Darby Engineering Sdn Bhd (SDE), a wholly-owned subsidiary of Sime Darby has confirmed that Emirates International Energy Services (EMAS) has indeed filed the suit against the company and vowed to challenge the suit. EMAS has written a letter to SDE claiming compensation in the amount of USD20m for not accepting several projects EMAS had identified for SDE. However, SDE stressed that it was under no obligation to accept EMAS's recommendations and had no time bound requirements to decline EMAS's recommendations. (Source: Bursa Malaysia)

QL Resources: Boilermech gets nod to float on Ace Market. Boilermech Holdings Bhd (BHB), an indirect associate company of QL Resources, has obtained approval to list on the Ace Market of Bursa Securities. (Source: Bursa Malaysia)

Green Packet: Defers Ebitda-breakeven target to end-2011. Green Packet Bhd has deferred its target of breaking even at the Ebitda level to the end of this year as opposed to the first quarter of 2011. The deferment was due to the more competitive environment and lower price point in the nomadic (portable) broadband segment. (Source: The Edge Financial Daily)

Ramunia: Azizul pares down stake in Ramunia. Ramunia Holdings Bhd's major shareholder Datuk Azizul Rahman Abdul Samad has pared down his stake significantly recently, raising speculations that he may exit the group soon. Azizul indirect shareholding in Ramunia fell to 73.3m shares, representing 11.06% stake, from 14.3% or 94.7m shares as at Dec 30, 2010. (Source: The Edge Financial Daily)

Supermax: Counts on new income stream. Glove maker Supermax Corp Bhd is banking on a new income stream derived from global sales and marketing network to mitigate any effects of higher production cost. The company would aggressively globalise its operations via its network of about 700 distributors worldwide. The new income stream is expected to contribute 5% of its 2011 net profit. (Source: The Star)

Metro Kajang: To buy plantation land in Kalimantan. Metro Kajang Holdings Bhd is in negotiations to acquire 20,000ha of plantation land in East Kalimantan. The acquisition could double the size of its plantation land bank which measures about 16,000ha at present. Metro Kajang expects to see contributions from its oil palm venture in 2012, when it will contribute 20% to group revenue. (Source: The Edge Financial Daily)

Utilities: Govt no to coal power plants in Sabah. The government has agreed not to build coal-fired power plants in Sabah. The proposed construction of the plant in Felda Sahabat, Lahad Datu, to meet electricity supply needs in Sabah's east coast had previously received objections not only from local non-governmental organizations but also international activists. (Source: The Edge Financial Daily)