RHBInvest Research

Top Story

YTL Power –Market Perform (up from UP)

• Visit Note
• More to come from “Yes”. Expect two new Yes devices in Mar when YTL Comms launches the Samsung Buzz mobile phone (mobile voice and SMS) and the Zoom router (enabling and sharing an Internet connection within a premise).
• Raised our SOP-derived fair value on YLTP from RM2.20 to RM2.57.
• YTLP offers investors attractive gross dividend yields of around 7% p.a..

Corporate Highlights

CIMB: Outperform

Company Update

• CIMB Niaga posts strong finish to FY2010
• No change to forecasts. Fair value of RM9.80 and Outperform call maintained.

MBM: Outperform

• 4QFY10 Results
• Slower growth ahead
• No significant changes to forecasts. Outperform call retained on valuation grounds.
• FV lowered to RM3.95 (from RM4.96).

CSC Steel: Outperform

• 4QFY10 Results
• Weak 4QFY10 due to margin contraction
• We continue to like CSC Steel due to its undemanding valuations, strong balance sheet with a net cash of RM241.4m or 64sen/share (after 13sen dividend payout), and attractive dividend yield.
• Indicative fair value is reduced to RM2.01.

Daibochi: Market Perform

• 4QFY10 Results
• Full-year FY10 net profit of RM18.2m (-19.6% yoy) was within expectations
• For 2011, we believe Daibochi will continue to grow its revenues as it did in 2010 (+20.7% yoy) through continuous product innovations in both F&B and non-F&B segments.
• Our fair value is unchanged at RM2.95

Wah Seong: Underperform

• 4QFY10 Results
• FY10 weak but within expectation
• FY11 will be a better year for earnings as both the pipe-coating and engineering divisions have already started to post improvements in 4QFY10. Current order book and tender book stand at RM1.4bn and RM5.7bn respectively, with the pipe-coating division contributing about 50% to both numbers.
• Maintain forecasts, Underperform call and our RM2.02/share fair value at this juncture.