Normally, PNB will always announce dividend ASB around between 20 to 24 December each year. But different from the year before, PNB is expected to announce the 2012 ASB dividend next week. Early in December 2012, much earlier than than usually.
ASB 2012 + bonus dividend was expected to be higher than normal .... Hoping that the dividen is high so that people in the mood "happy" before the 13th General Elections.
Malaysia Equities
Top Story
Top Glove – Expect Recovery In Margins Ahead Market Perform
Results / Briefing Note
- 3Q12 net profit of RM53.8m came in within our but above consensus expectations.
- We expect Top Glove to benefit from the recent softening in latex prices and strengthening in US$/RM rate. We thus maintain our fair value of RM4.95 and Market Perform call on the stock.
Corporate Highlights
Axis REIT – Continuing On The Acquisition Track Market Perform
News Update
- Axis REIT has proposed to acquire two properties in Petaling Jaya (the Wisma Academy Parcel and the Annex) for RM85m, and a placement of up to 90.8m new units, or about 20% of its existing 453.8m units.
- Our fair value is raised to RM2.82 (from RM2.76). Maintain Market Perform.
Malaysia Equities
Top Story
Taking Stock – Fundamentals Playing Catch-Up
Market Update
- Our expectations for the Dec 2011 quarter results are fairly neutral as we believe any bad news would have already been factored into earnings forecasts. However, we believe there is a possibility that some companies may use the market’s low expectations to delay booking in revenue (or provide for higher costs) in the 4QCY11 to boost the current year’s earnings.
Corporate Highlights
Digi – Looking Forward To LTE Outperform
Visit Note
- We remain positive on DiGi for potential to sustain future growth by monetising its 5.2m mobile Internet subscriber base through LTE.
- We understand that competition has been stable so far in 2012. While DiGi noted that U Mobile’s presence in the market has increased, since U Mobile is only a quasi-MVNO we do not expect competition to turn irrational anytime soon.
TH Plantation – Joining the ranks of the mid-cap plantation stocks Outperform
Visit Note
- Four key points: 1) Strong FFB production growth for FY11 achieved; 2) Production costs to rise in FY12, on higher labour and fertiliser costs; and 3) Work has started on THP’s new land acquisitions already; and 4) More acquisitions in 2012?
TRC Synergy – Defect liabilities weigh down on 4QFY12/11 performance Outperform
Results Preview
- We expect TRC’s FY11 net profit to miss expectations by 12-18% largely due to the recognition of additional defect liabilities in 4Q from certain recently completed projects.
BAT – BAT’s Market Share Grew In FY11 Market Perform (Upgraded)
Results/Briefing Note
- FY11 net profit (-1.6% yoy) was within expectations. BAT declared a fourth interim dividend of 66 sen, which brought its YTD dividend payout to 276 sen (including 30 sen special dividend paid in the 2QFY11).
Malaysia Equities
Top Story
Taking Stock – Fundamentals Playing Catch-Up
Market Update
- Our expectations for the Dec 2011 quarter results are fairly neutral as we believe any bad news would have already been factored into earnings forecasts. However, we believe there is a possibility that some companies may use the market’s low expectations to delay booking in revenue (or provide for higher costs) in the 4QCY11 to boost the current year’s earnings.
Corporate Highlights
Digi – Looking Forward To LTE Outperform
Visit Note
- We remain positive on DiGi for potential to sustain future growth by monetising its 5.2m mobile Internet subscriber base through LTE.
- We understand that competition has been stable so far in 2012. While DiGi noted that U Mobile’s presence in the market has increased, since U Mobile is only a quasi-MVNO we do not expect competition to turn irrational anytime soon.
TH Plantation – Joining the ranks of the mid-cap plantation stocks Outperform
Visit Note
- Four key points: 1) Strong FFB production growth for FY11 achieved; 2) Production costs to rise in FY12, on higher labour and fertiliser costs; and 3) Work has started on THP’s new land acquisitions already; and 4) More acquisitions in 2012?
TRC Synergy – Defect liabilities weigh down on 4QFY12/11 performance Outperform
Results Preview
- We expect TRC’s FY11 net profit to miss expectations by 12-18% largely due to the recognition of additional defect liabilities in 4Q from certain recently completed projects.
BAT – BAT’s Market Share Grew In FY11 Market Perform (Upgraded)
Results/Briefing Note
- FY11 net profit (-1.6% yoy) was within expectations. BAT declared a fourth interim dividend of 66 sen, which brought its YTD dividend payout to 276 sen (including 30 sen special dividend paid in the 2QFY11).
Malaysia Equities
Top Story
KNM – Still gloomy skies ahead? Underperform
Visit Note
- We came away from our visit remaining quite cautious on the company’s outlook. Management guided that 2012 will be a year of cost, operation and plant rationalisation.
- Besides that we are concerned that a couple of its’ large contracts will continue to be deferred despite management’s best efforts. The company is tentatively looking to release its 4QFY11 results on 28 Feb, but we are not too optimistic on it reporting better numbers.
Corporate Highlights
MRCB – EDL Losses To Weigh Down On FY12/12 Performance Market Perform (Downgraded)
Briefing Note
- MRCB guided RM30-40m start-up losses in FY12/12 from the newly completed 100%-owned toll road Eastern Dispersal Link (EDL) in Johor. MRCB guided very thin margins of 1-4% from the RM1.4bn LRT line extension project secured in Aug 2011.
Sunway REIT – Sunway Pyramid Still Spurring Growth Market Perform
Results/Briefing Note
- Sunway REIT’s (SunREIT) 2QFY12 realised net profit of RM50.7m (+13.6% yoy; +14.7% qoq) came in slightly above ours and consensus estimates. The strong earnings growth was driven by: 1) the flow through of rental reversion from Sunway Pyramid (SP); and 2) the incremental contribution from Sunway Putra Place. A 1.99 sen DPU was declared during the quarter, up 13.7% yoy and qoq.
Macro
IPI – Despite a rebound in industrial prod. in Dec, real GDP growth is likely to have moderated in 4Q
Economic Highlights (published 8 Feb 2012)
- Industrial production unexpectedly rebounded to 3.0% yoy in Dec, the first bounce back in four months, after easing to a revised +2.4% in Nov, from +2.9% in Oct.
COMPANY UPDATE
IJM Corporation RM5.45; Buy
Major wins
Upgrade to Buy. Two major pieces of news today - MRT job win and WCE concession win by Kumpulan Europlus - are positive for IJM, in terms of order book enhancement. However, we retain our earnings forecasts and RNAV-based target price pending details. Share price has come off since our last update and at current levels, the stock offers a 14% upside to our target. We upgrade our call to a Buy.
Alam Maritim Resources RM0.74; Hold
RM115m contract win to start 2012 Shariah-compliant
Positive but not yet a re-rating prospect. Securing Samsung's RM115m contract is newsflow-positive, and should contribute about 17.4% to 2012 earnings (which we have already factored in). While the contract flow momentum brought on by PETRONAS' capex plans is building up, Alam's stretched balance sheet will continue to curtail its growth potential (i.e. expansion of fleet size). Until this is addressed, Alam remains a Hold with a RM0.85 target price (9x 2012 EPS).
Top Story
MBSB – Watch out for NIM and credit cost Market Perform
Results Preview
- MBSB is expected to release its 4QFY11 results early-Feb. Our full-year net profit estimate of RM316m may appear conservative relative to MBSB’s 3QFY11 results as it implies that 4Q net profit would contract about 20% qoq (+>480% yoy) mainly due to NIM compression and higher loan impairment charges.
Sector Update
Media – A Seasonal Boost In December Underweight
Sector Update
- Dec’s gross advertising expenditure (adex) for TV and print media was relatively stable with 2.9% yoy growth (Nov was the weakest in 2011 at +2.2% yoy). On mom basis, adex jumped 16% mainly due to festivities and seasonality.
COMPANY UPDATE
Public Bank RM13.30: Buy
To kick off the reporting season
Raising our TP. Factoring in a 3% increase to our BV/share for FRS139 adoption and a higher target P/BV of 2.8x (2.7x previously) on updating our historical parameters, we are raising our TP on Public Bank to RM14.60 from RM13.50 previously. We maintain our Buy call for exposure to Public Bank’s impeccable fundamentals while a net yield of 4% provides support to share price.
RESULTS REVIEW
CapitaMalls Malaysia Trust RM1.45: Hold
East Coast Mall starts contributing
On track. CMMT's 2011 realised net profit of RM110.9m came in as expected. 2011 DPU of 7.9sen was also in line. CMMT has grown its asset size by 31% to RM2.8b since its listing in July 2010 with the Gurney Plaza Extension and ECM acquisitions. Potential earnings catalysts could come from the reconfiguration of outdoor car park lots at ECM into retail spaces. Hold.
Technicals
The FBM KLCI lost 0.41 points and closed at 1,522.66 last Friday ahead of the CNY holidays. The local market remained quiet in range-bound trading despite high volumes of between 1.44b to 1.94b shares traded. Some position-squaring ahead of the weekend and the impending CNY holidays later in the week caused a mild downward drift in the local bourse.
Trading Idea is an ACCUMULATE call on UNISEM, with upside target prices of MYR1.49 & MYR1.63.
Other Local News
Genting Bhd: RM120m deal with AWE. AWE Ltd (AWE), an Australian-based oil and gas exploration and production company, has entered a sale and purchase agreement with a subsidiary of Genting Bhd, whereby a wholly-owned subsidiary of AWE will acquire a 100% interest and operatorship of two production-sharing contracts (PSCs) offshore Indonesia. It also included an undeveloped oil field with an estimated 76m barrels of recoverable oil. The consideration for the acquisition of the interest in the PSCs will be USD39m (RM121.1m). (Source: The Star)
Sp Setia: Liew joins PNB in improved bid for SP Setia. Permodalan Nasional Bhd has revised its takeover offer for SP Setia Bhd's shares to RM3.95 apiece from RM3.90 previously, in a new deal with joint bidder CEO Tan Sri Liew Kee Sin. As the joint offeror, Liew will keep his 8% share of SP Setia. Liew will remain as SP Setia's group president and CEO for three years. He will be given a put option to sell his stake in SP setia to PNB at RM3.95 after the three-year period. (Source: Bursa Malaysia)
Perodua: Says sales slowed in January. Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has appealed to the government and the banking industry to loosen up the loan application process after new car sales slowed in January. New car sales had lost some momentum, because banks are taking a longer time to process loan applications. (Source: The Sun)
MPHB: To sell hotel to pare down debt. Multi-Purpose Holdings Bhd (MPHB) is in talks to sell a hotel in Kuala Lumpur for about RM50m as a part of its asset rationalization programme. Its wholly owned subsidiary, Syarikat Perniagaan Selangor Sdn Bhd, owns hotels in Penang, Pudu and Ampang, which are managed by Flamingo Managament Sdn Bhd. The other assets up for sale are its insurance business - Multi Purpose Insurans Bhd - as well as its stockbroking business. (Source: The Edge Financial Weekly)
COMPANY UPDATE
SapuraCrest Petroleum RM4.58: Buy
Orders 2 pipelay vessels Shariah-compliant
Maintain Buy with a RM5.60 TP. SapCrest's rapid expansion of its marine fleet to capitalise on the boom in the installation of pipelines and facilities (IPF) markets is positive, in keeping with its aspiration to be a regional player. This strategy will be rewarding, if executed well. However, contributions will only be realised from FY15. We remain positive on its strong ability to grow and pursue new jobs for medium term growth, and continue to rate SapCrest a Buy.
KNM Group RM0.96: Sell
Riding through a transition phase Shariah-compliant
Target price cut to RM0.88 (-19%) following a 10-19% downgrade in FY12-13F earnings forecasts on lower revenue recognition. While margin pressure has abated on improving order flows, we are cautious of KNM's cost management abilities and so retain a conservative stance on our estimates. KNM needs to deliver a consistent set of quarterly results to warrant a re-rating. Sell maintained.
Technicals
The FBM KLCI closed 3.27 points higher at 1,525.56 yesterday. Its resistance areas of 1,530 and 1,545 may cap market gains, whilst obvious support areas may be located at 1,505 and 1,525.
Trading idea is an ACCUMULATE call for UNISEM.
© Blogger template On The Road by Ourblogtemplates.com 2009
Back to TOP
