RHBInvest Research

Sime Darby:
Writeback of RM100m for Maersk Oil Qatar project.
We maintain our Outperform recommendation with RM10.60 fair value.

Macro View

BNM 2010 Annual Report:
Higher risk of inflation, degree of policy accommodation needs to be adjusted.
We expect the OPR to be raised by 50 basis points in 2H 2011 to bring it to a more neutral level of 3.25%.

Corporate Highlights

Kossan:
Expanding into clean room gloves.
Fair value maintained at RM5.12. Reiterate Outperform.

TNB:
Acquires stake in Integrax.
Maintain Market Perform.

TM:
Alcatel blacklisted.
Earnings growth is lacking until HSBB contributions pick up in FY12. Hence, maintain Underperform.


Hai-O:
Within expectations
Fair value of RM1.35. Underperform.

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RHBInvest Research

Plantation:

• Raise forecasts by RM200/tonne for CY2011 and 2012 to RM3,100 and RM2,900 respectively, while maintaining our RM2,700 assumption for CY2010.
• Upgrade call on Genting Plant to Market Perform (from underperform)
• Upgrade our sector call to Overweight (from neutral).
• Sime Darby remains a Market Perform,

Corporate Highlights

PLUS:

• Received a takeover offer from Jelas Ulung Sdn Bhd (JU) at RM5.20/share, a 13% premium over UEM-EPF’s RM4.60/share offer.
• Revise fair value from RM4.60 to RM5.20 to match the latest offer.
• Upgrade from underperform to Trading Buy.

Hai-O:

• Fair value has been cut to RM1.35 (RM1.71 previously) based on unchanged 10x CY11 EPS.
• Maintain Underperform.

Jaya Tiasa:

• 2QFY04/11 net profit boosted by higher FFB and CPO prices Indicative fair value is revised to RM5.78 (from RM4.83).

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RHBInvest Research

Gamuda:

• Trading Buy
• 1QFY07/11 net profit grows 20% yoy, appointed MRT’s PDP
• Fair value is RM4.51.
• Maintain Trading Buy.

Corporate Highlights


IJM:

• Awarded RM461m building contract for Naza’s Platinum
• Fair value is RM6.16.
• Maintain Market Perform.

Hai-O:

• Weak MLM sales continues
• Maintain Underperform.

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