RHBInvest Research

Top Story: ILB

• Visit Note
• Full-steam ahead in China, Dubai warehouse opens for business in 2012
• Fair value is RM1.40. Maintain Outperform.

Market View

Government Measures:

Market Update

• Fourth ETP update.
• The nine EPP projects are under six NKEAs including tourism, healthcare, agriculture, palm oil & rubber, electronics & electrical, and oil, gas & energy.
• We believe the Government and Pemandu will have a difficult time keeping the momentum going on the ETP
• Longer-term positive outlook is likely to prevail and in our view, ETP projects related to the Greater KL and oil, gas and energy NKEAs will continue to draw attention from investors.

Sector Call


Plantation:

Sector Update

• Day 1 of POC: Most in agreement for weaker second half
• Maintain Overweight on the plantation sector.
• We reiterate our Outperform calls on KLK, Sime Darby, TH Plantations and on SGX-listed First Resources, and our Market Perform call on IOIC, Genting Plantations and IJMP.

Oil & Gas:

Sector Update

• Another oil & gas project under the ETP.RG
• Gas and Chemicals will invest RM1bn over three years in an integrated oil and gas hub on Pulau Daat, Labuan.
• Maintain our Overweight stance.
• Our top pick for the East Malaysia space is Dayang Enterprise.