Maybank IB Views

Tuesday, August 9, 2011

CIMB Group Holdings RM8.30: Buy
CIMB Niaga's 2Q operationally in-line

Buy maintained, but uncertainty a drag. CIMB Niaga's 1H11 results were higher than expected due to lower provisions. We maintain our Buy call on CIMB with an unchanged target price of RM9.60 (2.6x 2012 P/BV, 17.4% ROE), pending the release of its 1H11 results. Uncertainty over Indonesian shareholding regulations, however, will remain a drag in the near term, as will CIMB's high foreign shareholding of 42.9% (end-June). CIMB's current share price largely reflects the possibility of lower shareholdings of c.40% in CIMB Niaga, we believe.

The FBM KLCI tumbled 27.44 points to close at 1,496.99 yesterday. Its resistance areas of 1,496 and 1,530 will cap market gains, whilst the weaker support areas are located at 1,450 and 1,474. The FBM KLCI’s previous key swing levels were: 1,576.95 (high), 1,474.38 (low), 1,565.04 (high), 1,507.64 (low) and 1,597.08 (high).

Trading idea is a Take profit call on E&O

Other Local News
SapCrest: Buys Australian marine outfit for RM400m. SapuraCrest Petroluem Bhd (SapCrest) is acquiring Australian-based Clough Ltd’s marine construction and offshore operations spanning Australia, UK and US for a total of AUD127m (RM400m) to be settled in cash. (Source: The Edge Financial Daily)

MMHE: Oilfield job renewal? The replenishment of Malaysia Marine and Heavy Engineering Holdings Bhd's (MMHE) order book has become uncertain as the project operators of the Malikai deepwater field are contemplating whether to maintain it as the preferred fabricator. It is learnt that Shell and other partners of Malikai, namely Petronas Carigali and Conoco Phillips, have yet to make a decision on the issue. (Source: The Star)

O&G: New lease of life for Asia Petroleum Hub. Asia Petroluem Hub Sdn Bhd (APH) and its bankers have reached an understanding, resulting in Datuk Gan Ah Tee of BDO-Binder being discharged as receiver and manager amid talks of new investors emerging to revive the company. (Source: The Edge Financial Daily)

Transportation: KTMB keen on Saudi high-speed rail project. Keretapi Tanah Melayu Bhd (KTMB) aims to work on the Haramain high-speed rail project in Saudi Arabia to gain expertise so it could undertake a similar project here. The USD6b (RM18b) Haramain project involves a 450km rail link between Makkah (Mecca) and Madinah. The project has commenced and is expected to be completed by end-2012. KTMB has sent several staff to the project site to lobby for contracts. (Source: Business Times)


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