RHBInvest Research

Top Story: Maxis –Market Perform (down from OP)

4QFY10 Results/Briefing Note
To unveil new services soon
Fair value revised from RM5.75 to RM5.65.
Hence, we revise our call from outperform to Market Perform. Core earnings growth in FY11 is modest, but generous dividends will provide support to the stock.


Sector Call

Banks:
Jan ‘10 system data – Continuing momentum from 2010
No change to our Overweight stance on the sector.

Corporate Highlights

Kencana: Market Perform
New contract awards
Maintain our fair value on the stock at RM2.85/share and our Market Perform call on the stock.

Allianz: Market Perform

Briefing Note
2011 fundamentals remain intact
Allianz is still in early stages of its planned acquisition of MNRB’s (Outperform, FV=RM3.41) Takaful Ikhlas arm.
We maintain our Market Perform call on the stock. Our fair value is unchanged at RM5.34/share.

WCT:

Briefing Note
Still positive on the Gulf States, Bakun provision final
Fair value is RM2.52. Maintain Underperform.

EON Capital: Underperform (down from MP)

4QFY10 Results/Briefing Note
4Q10 results hit by pre-emptive provisioning
Fair value remains at RM7.30 (HL Bank’s offer price), our expected market return is significantly higher than the potential upside for the stock and hence, recommendation downgraded to Underperform.

Kurnia Asia: Underperform

4QFY10 Results/Briefing Note
FY10 results below expectations, but in the right direction
Maintain fair value at RM0.25 and Underperform call on the stock.