RHB Invest Research

YTL Power: New WiMAX pricing competitive; high dividends in doubt
Market Perform

Company Update

Our initial impressions on the Buzz are less than favourable mainly due to: 1) smaller-than-average screen size; 2) lack of applications; 3) keypad being too small; and 4) a not-so-friendly user interface. We welcome the news that YTL Comms plans to launch Android smartphones in Jun, given their rising popularity.



MCIL: A Closer Look Into MCIL’s Non-Malaysian Business Outperform

Company Update

MCIL became a global Chinese language media group with operations spanning from Southeast Asia, Greater China as well as in North America following the merger of Sin Chew, Nanyang and Ming Pao in 1H07. Based on the 9MFY11 results, the non-Malaysian operations accounted for 39% of group’s revenue and 17% of group’s PBT.



Sector Call



Banking: BNM tightens eligibility requirements for credit cards Overweight

Sector Update



BNM announced last Friday a revision to the eligibility requirements for credit cards. Effective immediately: 1) The minimum income requirement for new credit card holders is set at RM24,000 p.a. (previously RM18,000 p.a.); and 2) For cardholders earning less than RM36,000 p.a.: a) Cardholders can now only hold credit cards from a maximum of two issuers. Cardholders with cards from more than two issuers will need to decide by end-2011 their preferred issuers and will be given at least two years to service their outstanding credit card debt for the cards that are cancelled; and b) Maximum credit limit per issuer must not exceed two times the customer’s monthly salary. Affected customers are given a two-year grace period to meet the new requirements.