Maybank IB Research

Friday, January 27, 2012

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).


RHBInvest Research

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.


Maybank IB Research

Wednesday, January 25, 2012

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.

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.

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)


Maybank IB Research

Friday, January 13, 2012

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.

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.

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