RHBInvest Research

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Digi:

• Briefing Note
• Looking forward to growth.
• Maintain Outperform call on the stock and fair value at RM29.10.

Corporate Highlights

IOI Corp:

• 2QFY11 Results
• IOIC recorded an estimated net EI loss of RM3.7m in 2QFY11, which included RM73m fair value loss on derivatives in the manufacturing division.
• Dampened by the weather
• We cut our SOP-based target price to RM6.70 (from RM7.65). We believe IOIC’s earnings may continue to disappoint for the rest of FY11, stemming from the weather-affected crop and potentially lower CPO prices achieved vis-à-vis current market prices.
• We downgrade the stock to Market Perform (from outperform).

Dialog:

• 2QFY11 Results
• 2Q results broadly in line
• No change to forecasts at this juncture, as we expect earnings to accelerate in the 2HFY11.
• Maintain Outperform call on the stock and RM2.82/share SOP-based fair value.

Amway:

4QFY10 Results
Amway’s FY12/10 net profit of RM78.3m (+7.9% yoy) was below expectations.
The main variance to our forecasts was the higher-than-expected selling and distribution expenses during the year, which was 14% higher than our estimates.
Our fair value is maintained at RM10.23 based on unchanged WACC of 8.9%. Maintain Outperform.

MAHB:

4QFY10 Results/Briefing Note

• A soft patch in FY10, growth to resume in FY11
• We have cut our FY11-12 earnings forecast by 3.6% and 6.1% respectively mainly due to reflect 1) higher effective tax rate; 2) lower non-airport revenue; and 3) Higher operating costs and depreciation.
• Correspondingly, our fair value is reduced to RM7.80 based on “sum-of-parts”. Maintain Outperform.