Maybank IB Views

Wednesday, August 3, 2011

Mah Sing Group RM2.44: Buy
Starts small, aims big Shariah-compliant

Attractive land deal. We are excited over MSGB’s latest involvement in DBKL’s privatized urban regeneration project along Jln Tun Razak. More importantly, MSGB could be invited for the development of the remaining 54 acres land (worth RM8b GDV). We maintain our earnings forecasts and Buy call. While the deal would enhance our RNAV by about 7 sen, our RNAV is lowered by 11 sen to RM3.16, factoring the potential dilutive impact from its RM325m convertible bond issuance.

CB Industrial Product Holding RM4.16: Buy
New RM171m contract win Shariah-compliant

Potential upside to earnings. CBIP has clinched a RM171m contract to assemble special purpose vehicle from the government. We estimate the contract to lift our 2011-13 net profit forecasts by 3-8%, with a potential 14 sen upside (+3%) to our target price. Our earnings forecasts are maintained for now pending further updates from recent proposed estates disposal. Maintain Buy with an unchanged TP of RM4.75 (7x 2011 PER).

The FBM KLCI rose 3.16 points to close at 1,554.85 yesterday. Its resistance areas of 1,554 and 1,574 will cap market gains, whilst the obvious support areas are located at 1,544 and 1,552.Due to the US markets’ major fall last night; we will see some initial selling activities in the local bourse today.

Trading idea is a Take profit call on PMETAL.

Other Local News
SapuraCrest: Wins new jobs in Australia. SapuraCrest Petroleum Bhd's flagship vessel Sapura 3000 has won jobs worth up to USD260m (RM780m) for the Gorgon natural gas project offshore Western Australia. The Gorgon project is one of the world’s largest natural gas projects and is a joint venture between Chevron's Australia subsidiaries and ExxonMobil Corp. (Source: The Edge Financial Daily)

CIMB: Ventures into Indian market. CIMB Group has entered the Indian market with the opening of its Mumbai office and the signing of a Business Cooperation Arrangement with Kotak Mahindra Bank Ltd. The cooperation is expected to cover areas of mutual interest, including merger and acquisition, advisory, trade finance and remittance. (Source: The Edge Financial Daily)

Catcha Media: Leong emerges as substantial shareholder. Justin Leong, grandson of the late Tan Sri Lim Goh Tong, has emerged as a substantial shareholder of Catcha Media Bhd with 6.7m shares or a 5.01% stake. (Source: The Edge Financial Daily)

Tech: BlackBerry maker mulls procurement hub in Penang. Research In Motion (RIM), the company which makes BlackBerry smartphones, is looking at establishing an international procurement centre (IPC) in Penang. The application to set up the centre has been submitted to the Malaysian Industrial Development Authority. (Source: The Star)

Property: KL among top three retail investment destinations in Asia. Pacific Star Group, one of Asia's leading real estate investment houses says commercial properties in Asia will continue to do well in the 2H11. Within the commercial sector, its top pick is retail real estate, whilst the top three destinations in the region for retail property investment are Hong Kong, Singapore and Kuala Lumpur. (Source: The Malaysian Reserve)


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