RHBInvest Research

Top Story: TNB

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Bracing for weaker 2Q
TNB lacks catalysts due to slowing electricity demand growth and no clear timeline for a formal fuel cost pass-through formula.
Maintain Market Perform.

Corporate Highlights

Faber:
Company Update
Potential bidder for Khazanah’s hospital support concession
We maintain our fair value of RM2.79. Outperform call on the stock.

Parkson:
News Update
Going Into Indonesia Via Acquisition of Centro Department Stores
Assuming the deal does go through, we estimate that it would increase PHB’s FY06/12 earnings by ~1.7-2%,
Fair value is maintained at RM5.90. Keeping our Market Perform recommendation on the stock.

IOI:

News Update
Finally announces South Beach buy
Our estimates suggest this acquisition would have an immediate negative earnings effect of 4-5% p.a. from the interest expense incurred, given that earnings from this property development would not come in until 2015.
Reduced our SOP-based target price to RM5.60 (from RM5.90).No change to our Underperform call on the stock.