Maybank IB Views

Malaysia Airports Holdings RM6.08: Buy
January traffic shows strong start

Momentum still strong. MAHB's Jan 2011 traffic statistics reveals a strong 13.3% YoY passenger growth. This is above the region and world's averages, and also above its own 2011 guidance of 8%. This is impressive performance given there were no long holidays in January (New Year fell on a weekend). Cargo grew marginally by 3.3% YoY stemming from domestic traffic. Maintain Buy, no change to our earnings forecasts and RM7.12/share DCF-based target price.

Media Chinese International Limited RM1.20: Buy
More upside potential in these pages Shariah-compliant

Maintain Buy and RM1.35 TP. Since initiating coverage a month ago, MCIL's share price has appreciated by 37%, even hitting an all-time high of RM1.24 yesterday. Adex growth remains steady despite higher ad rates while newsprint prices are manageable in light of USD100/bbl oil. Assuming 60% net DPR, investors can expect 3% net dividend yield in 4QFY11 alone. Amid external turmoil, MCIL offers a calmer alternative with decent yields. Valuations remain attractive.

Technicals
The FBM KLCI closed higher by 4.99 points yesterday at 1,508.88. Its resistance areas of 1,510 and 1,529 will cap market gains, whilst the obvious support areas are located at 1,490 and 1,508. We expect the index to remain in a minor rebound mode in the short term and to be bearish in the medium term.

Daily Trading Idea is a Short-Term Buy call on MEDIAC.

Other Local News
AMMB: ANZ may raise stake in AMMB. Australia and New Zealand Banking Group Ltd (ANZ) may raise its equity interests to controlling stake in four of the Asian banks it has stakes in, including Malaysia's AMMB Holdings Bhd as the group sees important investment opportunities for it to make the next leap in Asia Pacific. (Source: The Edge Financial Daily)

Sime: Zubir's lawsuits against directors, not Sime Darby. Sime Darby does not expect the two lawsuits, which are filed by Emirates International Energy Services and Sime Darby's group former CEO Datuk Seri Ahmad Zubir against the former and current directors, to have any significant impact on the group. (Source: The Edge Financial Daily)

Salcon: Clinches 30-year concession for treatment plant. Salcon Bhd’s wholly owned subsidiary Salcon Changzhou (HK) Ltd (SCHK) has clinched a 30-year concession right to acquire, upgrade, operate and maintain a wastewater treatment plant on a transfer-operate-transfer basis in Changzhou. (Source: The Edge Financial Daily)

Benalec: Secures RM37m contract. Benalec Holdings Bhd’s unit has accepted a letter of award from COMTRAC Sdn Bhd to undertake the proposed earthworks, river protection works and its associated works at Klang worth RM37m. The scope of works includes earthworks, reclamation works, ground treatment and protection works. (Source: Bursa Malaysia)

Kulim: Malay chamber prepared to buy over Kulim. The Malay Chamber of Commerce Malaysia (DPMM) says it is prepared to buy over Kulim (M) Bhd to keep the company's Bumiputera ownership. (Source: Business Times)

Autos: February vehicle sales flat. Total vehicle sales were flat last month, slipping a marginal 0.66% to 40,387 units from 40,654 units in the previous corresponding period. It is attributable to seasonal trends and a shorter working month. (Source: The Star)

Tech: Mclean gets nod to list on ACE market. Singapore-based Mclean Technologies Bhd, a precision cleaning and plastic injection moulding service provider, has received the nod to float its shares on the ACE market this year. (Source: The Sun)