Maybank IB Views

COMMENTS ON NEWS
SP Setia RM5.96: Buy
Replicating Eco Park's success Shariah-compliant

3% EPS enhancement from new Cyberjaya land. We are positive on the latest Cyberjaya land purchase by SP Setia (SPSB) given its fair pricing. More importantly, the land, which will be developed into a RM3b GDV mixed development, will enhance our FY13 earning forecast by 3%. SP Setia remains as our top Buy in property. Our TP is unchanged for now at RM7.15 (10% premium to its RM6.50 RNAV).


Technicals
The FBM KLCI closes lower by 2.96 points at 1,499.28. Its resistance areas of 1,499 and 1,527 will cap market gains, whilst the weaker support areas are located at 1,485 and 1,497.

Trading idea for today is a Take Profit call on PROTON.

Other Local News
Celcom: Investing RM1b to upgrade network. Celcom Axiata Bhd will invest about RM1b this year in capex to upgrade its network to be long-term evolution (LTE) ready. 60% of the RM1b would be used to enhance its data network while 40% would be used to maintain its current network. (Source: The Star)

Sime Darby: No deal signed on Cameroon. Sime Darby Berhad clarified that it has not entered into any agreement to invest in oil palm plantation in Cameroon. However, Sime Darby does explore investment opportunities relating to its core businesses as part of the continuous expansion plan of the Group. (Source: Bursa Malaysia)

MMC, Gamuda: In shareholders deal. MMC Corp Bhd and Gamuda Bhd have entered into a shareholders' agreement to regulate their rights and liabilities as shareholders of a company that will act as the project delivery partner for the Klang Valley Mass Rapid Transit (MRT) project. The company that would undertake the MRT project would be equally owned by MMC and Gamuda. (Source: Bursa Malaysia)

Uzma: Secures RM200m Petronas contract. Uzma Bhd's subsidiary, Uzma Engineering Sdn Bhd, was awarded a long term service agreement from Petronas to provide a Low Pressure System (LPS) for its domestic upstream operations. The contract that is estimated to value at RM200m encompasses supply of uzmAPRESTM equipment, manpower and consultancy services. The tenure of the contract is from Feb 18 2011 till Feb 17 2014, with the option to extend the contract for another two years. (Source: Bursa Malaysia)

O&G: Petronas to invest RM250b in next 5 yrs. Petroliam Nasional Bhd plans to invest RM250b in the next five years in exploration and asset replacement to maintain the exploration levels. The capital expenditure would be internally funded. (Source: The Edge Financial Daily)

Aviation: IATA cuts airline industry 2011 earnings outlook. Global airline earnings will halve this year as rising costs, especially oil prices, offset increasing demand, according to industry body International Air Transport Association (IATA). IATA, whose 230 members include Malaysia Airlines and Singapore Airlines lowered its earnings forecast for 2011 to USD8.6b this year from USD9.1b forecasted in December. The new forecast represents a 46% decline in net profit from 2010 net profit of USD16b. (Source: The Star)