RHBInvest Research

Top Story : AirAsia – 9MFY12/11 results to trail consensus Underperform (down from MP)

Results Preview

- We expect AirAsia's 9MFY12/11 results to meet our forecast but trail the market expectations.





Corporate Highlights



Unisem : Weak 4Q ahead Underperform

Briefing Note

- Unisem expects revenue to decline 8-10% amidst the softening demand for electronics stemming from the slowdown in global economy. Nevertheless, despite the anticipation of a drop in revenue, Unisem still expects 4Q earnings to improve from the previous quarter on the back of cost-cutting measures.





Mah Sing : Adding a “Thai” flavour into Icon City Market Perform (up from UP)

News Update

- Mah Sing entered into a MOU with Central Pattana Public Company Ltd to study the potential investment of developing and managing a shopping mall in Icon City through a JV and/or partnership. The MOU takes effect on 2 Nov and is valid until formal agreements are entered into within six months time with an automatic extension of three months.

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Maybank IB Views

ECONOMICS
Singapore: Trade, Sep 2011
Bumpy ride...

Worse-than-expected... Singapore's non-oil domestic exports (NODX) fell by -4.5% YoY as opposed to the expected +3.5% YoY gain. At the same time, Aug 2011's growth was revised downward to +3.9% YoY (previous: +5.1% YoY). YoY figures have been swinging between growth and contraction in the past seven months, resulting in sluggish 2011 YTD growth of +3.9% (Jan-Sep 2010: +24.8%; 2011: +22.8%). Next year's NODX growth is expected to remain equally sluggish at 3.8%, according to the forecast by Maybank FX Research.

RESULTS REVIEW
Public Bank RM12.50: Hold
Decent growth but priced in

Hold maintained. 3Q11 RM899m net profit, while up a commendable 15% YoY, is broadly within expectations, with 9M11 RM2.61b net profit (+18% YoY) at 77% of our full-year forecast and consensus. Positive surprises on margins were offset by lower-than-expected non-interest income (NII). Our forecasts are maintained along with our TP of RM12.30 (2012 P/BV of 2.5x, ROE: 21.8%).

Axis REIT RM2.45: Buy
On track; better 4Q ahead

Maintain Buy. AXRB's RM48m 9M11 core net profit (+32% YoY) came in as expected. The proposed acquisition of warehouses in Seberang Perai is expected to be completed by end-11, lifting AXRB’s total assets to RM1.32b (+4.8%; from RM1.26b). AXRB aims to grow its total asset size to RM2.0b by 2012. We maintain our earnings forecasts and RM2.70 DCF-based TP. The trust's proven track record in growing its asset portfolio and dividend income will remain the pull factors.

SECTOR UPDATE
Automotive: Underweight
Cool down in September sales

Post raya and Merdeka sales dampen September TIV. The MoM contraction in Sep's vehicle sales was widely anticipated following the rush of deliveries in Aug and shorter working month. Overall, we expect a seasonally softer sales trend in 4Q from 3Q TIV sales of 153,041 units and continue to be bearish on the sector, on softer consumer spending in light of a potential global economic slowdown. The sector remains an Underweight and we retain our Hold calls on UMW and MBM while Proton and TCM remain as Sells.

Technicals
The FBM KLCI surged 22.92-points to close at 1,465.35 yesterday. Its resistance areas of 1,467 and 1,487 may cap market gains, whilst the obvious support areas are located at 1,445 and 1,465.

Trading Idea is MFLOUR

Other Local News
Mah Sing Group: RM2.5b sales target next year. In order to achieve its sales target of RM2.5b, Mah Sing Group plans to adjust their product mix in line with today's sentiment and needs. Mah Sing Group will focus on lower-priced and smaller units of serviced apartments in the next two years to cater to demand of the young population. (Source: The Star)

PacificMas: OCBC bids RM450m for PacificMas units. OCBC Capital Malaysia planned to acquire 100% of Pac Lease Bhd, PB Pacific Sdn Bhd, PacificMas Fidelity Sdn Bhd and PacificMas Capital Sdn Bhd as well as an 85% stake in Pacific Mutual Fund Bhd with aggregate purchase consideration of RM450m. (Source: Bursa Malaysia)

Leader Universal: Controlling shareholders offer buyout. The controlling shareholders of Leader Universal Holdings Bhd, through HNG Capital Sdn Bhd (HNGC), have made a RM480.1m offer to acquire the entire assets and liabilities of the company for RM1.10 per share. The purchase shall be satisfied via RM410.9m in cash and RM69.2m as an amount remaining due and owing by HNGC as a debt due to Leader. (Source: The Star)

Proton: Offers lifetime warranty on power windows. Proton has once and for all moved to erase any doubt over defective power windows by offering a lifetime warranty for all new Proton models registered from Sept 1, 2011 and vehicles that are still under the manufacturer’s warranty as at Sept 1. (Source: The Star)

Construction: Second Penang Bridge ahead of schedule. Construction of the second Penang bridge is likely to be completed two months ahead of its projected November 2013 schedule. It is likely that work on the new bridge will achieve 70% progress by the end of this year. (Source: Business Times)

Transportation: Better KTM Komuter service by Jan 2012. KTM Komuter users can look forward to better commuting experience this January when the first of the 38 six-car electrical multiple unit (EMU) is put into service. To complement the new trains, an automatic fare collection system was being implemented and full refund will be given for trips that are delayed by more than 30 minutes. (Source: The Sun, The Star)

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Maybank IB Views

COMPANY UPDATE
Mah Sing Group RM1.80: Buy
New township to sustain growth

3rd land purchase in 2011.We are positive on MSGB's latest land purchase in Rawang. Apart from attractive pricing, the new land would provide resilient bread-and-butter sales and sustain MSGB's long-term growth. We raise our 2012-13 forecasts by 1-3% to factor in this project but lower our RNAV estimate by 21 sen to RM2.95 on higher WACC assumption of 9.4-11.4% (from 7.5-9.4%). Our new TP is RM2.36 based on a 20% discount to RNAV. Maintain Buy.

KFC Holdings (Malaysia) RM3.20: Hold
More time for India's operation Shariah-compliant

Hold maintained. With slower economic growth likely to have some dampening effect on consumption demand, we have lowered our same-store-sales growth assumption by 0.5%-pts for 2012 and 2013 to 1.3% and 1.5% respectively and trimmed our profit forecasts for 2012 and 2013 by 5% each year. Our DCF-based TP is correspondingly cut to RM3.37 from RM3.97 on lower earnings and a higher cost of equity of 8.6% from 7.9% previously, on account of higher economic risks. Valuations are still not appealing at this stage, with KFC trading at a prospective 2012 PER of 14.2x and dividend yields of just 2.1%.

Technicals
The FBM KLCI rose 14.29-points to close at 1,375.67 yesterday. Its resistance areas of 1,376 and 1,410 will cap market gains, whilst the obvious support areas are located at 1,353 and 1,374.

Trading ideas are IJM, IGB and MHB.

Other Local News
Perodua, Proton: To ink deal. Perusahaan Otomobil Kedua (Perodua) expects to ink a collaborative agreement with Proton Holdings Bhd on certain aspects this year or early next year. (Source: The Star)

AirAsia: To take off for Da Nang. AirAsia Bhd is flying to Da Nang, Vietnam, from December 16 and the low-cost airline is confident of achieving a load factor of more than 80% based on the good load factor for its flights to Hanoi and Ho Chi Minh City. (Source: Business Times)

UEM Land: Unit appeals to IRB. UEM Land’s wholly owned subsidiary, Bandar Nusajaya Development Sdn Bhd (BND), received a notice of additional assessment from the Inland Revenue Board for additional tax and penalty in respect of the year of assessment 2006, resulting in an additional tax payable of RM73.8m . BND has commenced the appeal process against the additional assessment. (Source: Bursa Malaysia)

Malayan Flour Mills: Plans Indonesia venture. Malayan Flour Mills Bhd (MFM) has signed a shareholders' agreement with Indonesian company PT FKS Capital, Japan's Toyota Tsusho (Singapore) Pte Ltd (TTS) and PT Toyota Tsusho Indonesia (TTI) to establish a joint venture company named PT Bunga Sari Flour Mills Indonesia. MFM will own 30% stake in Bunga Sari for the purpose of carrying out the business of flour milling and distribution of flour products and by-products. The joint venture is expected to contribute positively to the profitability and growth of MFM Group in the future. (Source: Bursa Malaysia)

Plantation: MPOA will not quit RSPO. The Malaysian Palm Oil Association (MPOA) will not quit the Roundtable on Sustainable Palm Oil (RSPO) grouping but it is advising its members to stop seeking new RSPO certification for the production of certified sustainable palm oil (CSPO). Of the total RSPO-certified palm production, MPOA claimed that only 40% was taken up while the CSPO premium had plunged to only 30 US cents compared with USD50 per tonne in 2008. (Source: The Star)

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RHB Invest Research

Top Story: Plantation – Looking for a “safe haven” Overweight (up from N)

Sector Update

¨ We believe one sector that would hold up relatively better during times of economic uncertainty would be the plantation sector. While we acknowledge that commodity prices are likely to come under pressure during this period amidst the strengthening US$, we have already imputed this risk into our CPO price forecasts of RM3,100/tonne for 2011 (YTD RM3,400/t) and RM2,900/t for 2012



Corporate Highlights



Mah Sing: Strategic switch to affordable housing Underperform

News Update

¨ Mah Sing announced that it has entered into an agreement to acquire 100% of Semai Meranti for RM92m. Semai Meranti is the owner of 225.7m acres of freehold development land in Rawang. Land cost of RM9.36 psf is reasonable for a large tract of residential land in a suburb 30-40km away from KL city.

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Maybank IB Views

Plantation: Neutral
Short term fundamentals improved

Maintain Neutral, for now. Amidst the financial chaos in the past week which led to a 6% correction in CPO price to below RM3,000/t (3M Futures), we expect some short term relief as fundamentals improved on lower July inventory, rising exports over 1-10 Aug period, and lower production productivity during the fasting month. US' pledge to maintain interest rate at near-zero through mid-2013 would help to support commodity prices, CPO price inclusive. But do expect short term price volatility. Maintain Neutral on the sector. Our top Buys are SOP and TSH which offer single-digit valuations (for SOP) and strong +16 to +20% 3-year forward production CAGR.

RESULTS PREVIEW
Petronas Chemicals RM6.19: Buy
Maintenance shutdowns dampener Shariah-compliant

2Q11 will be beset by maintenance shutdowns. PCHEM is expected to release its 2Q11 results on 24 August. 2Q will be bogged down by major maintenance shutdowns and nationwide gas curtailment during the period. Product volumes will be lower but fortunately the higher product margin will help to offset this. Maintain Buy, with an unchanged TP of RM8.15 based on 13.5x 2012 PER, in line with global peers.

ECONOMICS
Industrial Production Index (IPI), Jun '11
Rebound after two months of declines

Industrial production index (IPI) rebounded in June '11 after two months of declines i.e. +1.0% YoY (revised May '11: -5.6% YoY) and +3.5% MoM (revised May '11: -1.4% MoM). Manufacturing output growth gained momentum as the Japan supply-chain effect diminished, but mining production - especially crude oil - remained a drag. Industrial output however shrank -1.6% YoY in 2Q 2011 (1Q 2011: +2.4% YoY) and -1.6% QoQ (1Q 2011: -0.3% QoQ), implying further deceleration in GDP growth. Our 2011-year real GDP growth forecast was revised downward to +5.1% at the start of 2H 2011 versus +5.5% at the start of the year. Our imputed 2Q 2011 growth was correspondingly trimmed to +3.9% YoY from +4.7% YoY. 2Q01 real GDP data will be out on 17 Aug.

Technicals
The FBM KLCI rose 8.38 points to close at 1,480.52 yesterday. Its resistance areas of 1,480 and 1,530 will cap market gains, whilst the weaker support areas are located at 1,423 and 1,472.Due to the US markets’ plunge last night; we will see some volatile trading activities in the local bourse today. Some heavy profit-taking and liquidation activities on any rebound.

Trading idea is AIRASIA.

Other Local News
Mah Sing: To buy potential lands yielding RM7b GDV. Mah Sing Group Bhd is targeting land acquisitions which could potentially yield RM5b to RM7b in gross development value (GDV) compared to 10 landbanking transactions in 2010 with combined GDV of approximately RM4b. (Source: The Malaysian Reserve)

AirAsia: AirAsia X picks IPO adviser. AirAsia X has chosen Morgan Stanley as its adviser for its proposed initial public offering (IPO) for which listing plans, targeted for next year, were underway. Khazanah Nasional Bhd's proposed plan to take up a 10% stake in AirAsia X would be executed "very quickly" with issuance of new shares in AirAsia X. (Source: The Star)

Maxis: Partners Alcatel-Lucent to deploy first 100G core transmission network in Asia Pacific. Maxis Bhd, with Alcatel-Lucent as a strategic supplier, will be deploying the first 100G single carrier with optical coherent energy network solution commercially deployed in the Asia Pacific. With that, Maxis will be able to address growing bandwidth requirements and data usage driven by smartphones, tablets, modems and fiber-to-the-premises services. (Source: Bernama.com)

Aviation: Airport tax hike. Malaysian Airports Holdings Bhd (MAHB) is raising tax to cover rising operating costs and finance airport expansion. The airport operator has proposed that the tax at the country's 39 airports it manages, excluding low cost carrier terminals (LCCT), be raised by RM14 for international travelers from Sept 15. The travelers will have to pay RM65 from RM51 (RM45 for airport tax and RM6 for security charge) now. (Source: The Sun)

Plantation: Planters see minimal impact by pay rise. The cost of production (COP) and profit margins among oil palm plantation companies will be minimally affected by the Malayan Agricultural Producers Association's (MAPA) decision to increase the wages of some 157,270 general plantation workers nationwide. (Source: The Star)

Construction: RM2b cable car link. The country's first proposed mainland-to-island cable car will be built in Port Dickson as part of the RM2b PD Waterfront project. The cable car project, spanning 750m, will link the new PD Waterfront township with Pulau Arang, an uninhabited island to boost tourism. (Source: The Star)

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Maybank IB Views

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).

Technicals
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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Stocks to watch: MBSB, Catcha, Mah Sing, Kawan

KUALA LUMPUR: Stocks which would see trading interest on Wednesday, Aug 3, despite the cautious market outlook include MALAYSIA BUILDING SOCIETY BHD (MBSB), Catcha Media Bhd, MAH SING GROUP BHD and KAWAN FOOD BHD.

MBSB posted net profit of RM78.25 million for the second quarter ended June 30, 2011, up 58% from the RM49.51 million a year ago.

MBSB said the increase in profit was mainly due to higher income from Islamic banking operations and conventional business net interest income, lower other operating expenses and lower impairment allowances on loans. These were partially set off by lower other income in the current quarter.

Revenue increased by 80.8% to RM318.56 million from RM176.13 million. It declared an interim cash dividend of 5% less 25% income tax.

In Catcha Media Bhd, Datuk Justin Leong Ming Loong has emerged as a substantial shareholder with 5.01%.

A filing with Bursa Malaysia showed he acquired the 6.663 million shares on Monday from the open market. Leong is the head of strategic investments and corporate affairs of Genting Group. He is a grandson of the late Tan Sri Lim Goh Tong.

Mah Sing Group Bhd is teaming up with Asie Sdn Bhd to jointly develop about 4.08 acres of prime land along Jalan Tun Razak-Jalan Pahang here which is part of the largest privatised urban regeneration project in Kuala Lumpur.

Mah Sing would undertake a niche development – M Sentral --with an estimated gross development value of approximately RM900 million.

Kawan Food Bhd’s 60 million free warrants will be listed on Wednesday. Under the corporate exercise, one free warrant was issued for every two existing shares held on July 27. The expiry date is July 28 and the revised exercise price is RM1.40.

In MNRB HOLDINGS BHD, the board of directors had agreed to recommend the payment of the first and final Dividend of 20% less 25% income tax for the financial period ended March 31, 2011 to be paid on a date to be announced later.

The proposal was subject to shareholders’ approval at the 38th AGM.

CB INDUSTRIAL PRODUCT HOLDING Bhd has secured a RM171 million contract to supply 100 units of fire rescue transport with the fittings and accessories.

Its unit AVP Engineering (M) Sdn Bhd had accepted the letter of award from the Ministry of Housing and Local Government on June 28.

Read more...

RHBInvest Research

Top Story: Penang Property Update

• Sector Update
• Property sector is the key beneficiary of all the infra developments and strong capital investment flow in Penang.
• IJM Land and E&O, which are the prime beneficiaries of the upcoming major infra developments and strong capital investment flows into the Penang state.
• Our estimated fair value for E&O is RM1.91,we maintain our Overweight stance on the sector. Our top picks are IJM Land and Mah Sing.

Sector Call

Banking:

Sector Update

1QCY11 report card
Low loan impairment allowances provides relief to slow start
No change to our Overweight stance on the sector.

Media:

Sector Update 1Q11

1. Apr Adex For TV and Print Grew 17.8% YoY
2. Media Prima remains our preferred pick given its position as the largest integrated media player in Malaysia. In addition, we believe there is still scope for further synergies to be unlocked across its different platforms.
3. No change to our Overweight call on the sector.

Building Material:

Sector Update

• Impact of electricity and natural gas tariff review
• Maintain Underweight for the sector.

Corporate Highlights

TNB:

Briefing Note

• TNB’s outlook received a boost after receiving an average tariff hike of 7.12% effective 1 Jun and the formalisation of a fuel cost pass-through (FCPT) formula.
• Fair value raised to RM8.00 (previously RM5.60). Upgrade to Outperform from Underperform.

CBIP:

Results / Visit Note

• Benefitting from plantation arm
• Raise target price to RM4.90 (from RM4.65), after updating for CBIP’s latest net debt figure.
• No change to our Market Perform recommendation on CBIP.

MCIL:

Results Note

• FY11 Ends On A High Note
• Fair value is raised to RM1.43 (from RM1.38), which is based on unchanged target CY11 PER of 13x.
• We reiterate our Outperform call on the stock.

Petronas Gas:

News Update

• Minimal Impact From Government’s Gas Price Hike
• We maintain our RM13.95/share fair value and Outperform call on the stock.

Petronas Chemicals:

News Update

• Minimal Impact From Government’s Gas Price Hike
• Fair value for the stock decreases slightly to RM8.92/share (from RM9.02/share previously). We maintain our Outperform call on the stock.

Read more...

RHBInvest Research

Top Story: Talking Points – Government in action?

• Market Update
• At the opening of the 7th InvestMalaysia conference yesterday, the PM’s message was clear execution is key to the transformation plans.
• Investors’ focus will remain fixed on the outcome of the Sarawak state election on 16 Apr.
• In the current volatility, investors may gravitate towards more defensive or alpha+ stocks and at the same time, take profit on stocks that have significantly outperformed YTD.
• Nevertheless, our long-term positive view on the equity market is unchanged given decent EPS growth estimates and valuations. Our year-end FBM KLCI target of 1,700

Corporate Highlights

Public Bank :

• Results Preview
• Banking on steady growth
• Public Bank is expected to announce its 1QFY11 results later this week. Apart from being a seasonally slower quarter, we do not expect any major surprises
• No change to forecasts. Fair value of RM15.40 and Outperform call maintained.

Mah Sing :

• News Update
• Strategic exposure for industrial development
• Mah Sing announced a proposed acquisition of freehold land in Tanjung Kupang JB, measuring 205.72 acres, for a purchase consideration of RM54.7m. This translates to RM6.10 psf.
• We are positive on the purchase. Our fair value is raised to RM3.15 (from RM3.03),
• Mah Sing continues to be our top pick for the property sector. Maintain Outperform.

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Maybank IB flyers

1. Mah Sing Group Berhad (MAHSING, Stock Code: 8583)

Mah Sing Group Berhad manufactures plastic molded products, operates in property development and investment, trades plastic and other related products and provides construction services

Currently, the Group has 33 projects spread throughout Malaysia 's economic nexus and property hotspots, namely KL and the Klang Valley , Johor Bahru (Iskandar Malaysia ) and Penang Island (North Corridor Economic Region). The Group's principal activity is in property development. Apart from the core business, the Group is also involved in plastic manufacturing and trading in Malaysia and Indonesia .


2. Coastal Contracts Berhad (COASTAL, Stock Code: 5071)

Coastal Contracts Berhad provides fabrication and sale of marine transportation vessels, property letting, ship repairs and maintenance, sub contract services, vessel chartering, tugboat and barge transportation, equipment hiring as well as barge hiring and leasing services.

With the Libya oil crisis, Brent Crude oil has now risen above USD120/barrel. Coupled with Petronas' re-gassification projects, Coastal is expected to gain from these 2 factors.

3. Masterskill Education Group Berhad (MEGB, Stock Code: 5166)

Masterskill Education Group Berhad is an investment holding company. Its subsidiaries provide higher education and training in nursing and allied health sciences.

It intends to open a campus in Indonesia soon in a move to diversify geographically, sources said. It will form a joint venture with Indonesia-based hospital owner PT Sejahteraraya Anugrahjaya (PTSA) for the venture. Having touched a low of RM1.67, its share price seems to have risen due to this news.

4. Mitrajaya Holdings Berhad (Mitra, Stock Code: 9571)

Mitrajaya Holdings Berhad is an investment holding company. Through its subsidiaries, it constructs buildings and roads, provides civil engineering services, supplies construction materials, and manufactures and sells ready-mix concrete. It also invests, manages and leases plant and machinery.

Its PE (of 5.9x) is still attractive since our recommendation to buy this stock at RM1.25 a few months back. Having successfully done KLIA & the Cyberjaya Flagship Zone, it may look to gain further as it may possibly be given a role in the coming Sg Buloh-Kajang MRT project. It performed a successful role in KL LRT project before.

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RHBInvest Research

Top Story: Benchmarking – Tracking the benchmark

• Market Update
• Equal weighting all FBM KLCI stocks would have resulted in YTD gain of 3.4% (vs. the index of +2.3%) but this would still have underperformed vs. FBM100 which rose by 4.7%.
• This implies that investors had to take an active risk position. We note that FBM KLCI followers had to get seven stocks right (Maybank, Sime, PetChem, Digi, Genting Malaysia, TM and PetDag), or underweight six others (TNB, MISC, KLK, YTL Corp, YTL Power and MAS). Big gainers outside of the FBM KLCI sectors and stocks included Dialog, SapuraCrest, Mah Sing, MCIL, UEM Land, DRB Hicom, and MPHB, highlighting the merits of bottom-up stock picking under current market conditions.

Sector Call

Insurance:

• Sector Update
• Gradual liberalisation of motor insurance
• We believe that the move to detariff the motor insurance segment is positive for the industry in the long run. In the short to medium term, we believe the gradual premium increase would do little to cover losses stemming from the TPBID policies although we believe that it is in the right direction.

Corporate Highlights

IOI:

• News Update
• RSPO suspends certification process
• We believe this suspension has more to do with the NCR land dispute in Baram, Sarawak, than any other issue.
• Maintain Underperform with fair value of RM5.90.

Read more...

RHBInvest Research

Property:

Sector Update
Fundamentals intact despite weak market sentiment
We lower our fair value on Glomac and YNH. As for KSL, the stock is still largely undervalued.
We maintain our Overweight rating on the sector. Our top pick is Mah Sing.



Corporate Highlights



UMW Holdings:

Company Update
UMW Secures NAGA-3 Contract
We reiterate our Market Perform recommendation and fair value of RM7.85



SP Setia:

Results Note
As good as expected
Maintain our Outperform call with an unchanged fair value of RM7.30



Kencana Petroleum:

Results Note
Earnings Mainly Bumped Up By KM-1
We maintain our fair value at RM2.85/share and our Market Perform call on the stock.

Read more...

RHBInvest Research

Property: – Outlook and concerns

UEM Land , SP Setia, IJM Land and KSL are confident in their property sales this year with more new launches scheduled in the pipeline.

Rising building material costs such as steel bar, cement as well as the shortage of labours are key concern.

UEM Land: Correlation between ULHB’s foreign shareholding and share price is 0.94. Hence, any short-term capital reversal would result in relatively strong profit taking activities on the stock. However, continuous news flow on IDR will keep investors’ interested on the stock. If we include the contribution from potential development of Singapore land parcels, RNAV/share is estimated at RM3.05.

IJM Land: A total of about RM2bn worth of new launches is scheduled for this year. Unbilled sales have risen from about RM800m to almost RM1bn. While management has conservatively estimated a GDV of only RM4bn for Canal City , we believe the actual GDV could amount to RM9-10bn.

SP Setia: Closed about RM1bn sales from KL EcoCity project – 10 blocks of boutique offices and over 90% of strata office units were booked. In addition to the unbilled sales of RM2.4bn, given the RM7-8bn worth of new projects in the pipeline, RM3bn sales target seems to be rather modest. Meanwhile, continued news flow on landbanking will provide some support to the share price.

KSL – Estimate that total value of all assets could amount to RM700-800m – similar to its current market cap. Although the delay in obtaining approval for Bandar Bestari could yield some earnings risk, the stock’s underlying asset are still under-estimated by the market

IRDA – Following the bilateral agreement between Malaysia and Singapore governments, increased interest from China is particularly strong on hotels and resorts business. Total investment from Singapore is now about S$2bn. Note that for Temasek and other developers from Singapore to enter, this suggests that the Singaporeans are confident on the potential of IDR, which will then lead to value appreciation for the real estate and properties in Johor.

Maintain Overweight. Top picks are SP Setia, IJMLD, Mah Sing (fair value is upgraded to RM3.03) and KSL. Considering the current valuations of the sector, we see better values in the small-mid cap property stocks such as Mah Sing and KSL which are trading at 15.7x and 8x FY11 PE, respectively.



Sime Darby:

• Lawsuit from Emirates International Energy Services (EMAS) asking for nearly US$200m in damages, stemming from a dispute over tender bids.
• No change to forecasts, target price of RM11.10 and our Outperform call.

Read more...

Maybank IB Views

MARKET COMMENTS
Special Feature
Dong devalues again

Small financial impact. The Dong devaluation, by 9.3% last Friday (11 February), was not unexpected. Forex loss in the profit and loss (P&L) statements of Malaysian corporates under our coverage are negligible. Impairment for investments for the property developers can be "compensated" via higher subsequent selling prices which are usually denominated in USD. No change to our earnings forecasts and recommendations for the Malaysian corporates.


COMPANY UPDATE
AirAsia RM2.69: Buy
AirAsia to defer aircraft delivery, again.... Shariah-compliant

Fourth deferral. AirAsia has deferred its 2012 aircraft delivery schedule from 24 to 14. This is its fourth deferral to date. The 10 aircraft deferred will be pushed to 2015 delivery schedule. No impact to our forecasts as we have already expected this aircraft deferral intention. Maintain Buy with a target price of RM3.36 based on 9.0x 2011 PER, 20% discount to peers.


RESULTS PREVIEW
Malaysia Airports Holdings RM6.02: Buy
MAHB Showed its true metal in 2010

Conclusion to a good year. MAHB will release its 4Q10 results on 16th Feb. 4QCY is seasonally the best. Based on the operating statistics published, we expect net recurring net income of RM154m (11.9% YoY, 63.4% QoQ) - this is MAHB's best quarter ever. MAHB is our top aviation pick as it is well placed to enjoy the current air travel up-cycle. Maintain Buy, no change to our RM7.12/share DCF-based target price.


RESULTS REVIEW
Amanah Raya REIT RM0.945: Buy
Beats consensus, driven by new acquisitions

Maintain Buy. AAREIT’s 2010 RM41.4m realised net profit (+34% YoY) was within our expectation, but above consensus estimates by 12%. We continue to like AAREIT for its 7.7% 2011 yield (on par with 7.8% industry), and good earnings visibility and sustainability supported by long lease agreements with step-up features. We however lower our forecasts by 3-11% and DCF-based TP by 7 sen to RM1.12 to factor in slower-than-expected completion of three PKNS’s asset acquisitions.


Technicals
The FBM KLCI plunged 37.30-points and closed at 1,494.52 last week, as fierce foreign selling emerged. Repatriation from the Asia-Pacific zone to Europe and USA was the obvious foreign fund agenda over the last 3-4 months and this especially accelerated last week in the region. Regional currency weakness (on the Vietnamese Dong, IDR and PHP) added to the regional malaise. The weaker support areas for the FBM KLCI are located in the 1,415 to 1,474-zone. The firm resistance zone of 1,494 and 1,544 will see heavy liquidation activities.

Weekly trading idea is a technical Take Profit call on CIMB


Other Local News
Auto: Proton confident of maintaining sales. The Proton Edar Dealers Association (Peda) is confident that Proton can sustain its current sales above its close competitor, Perodua. According to Peda, this would be achieved through better quality, delivery process, product line-up and marketing plan. Proton sales had superceded Perodua in the last month partly due to a healthier supply of cars and strong support from banks in approving loans and faster disbursement. (Source: Bernama)

Aviation: Turkish Airlines plans direct flight to KL in near future. Istanbul-based Turkish Airlines is eyeing Kuala Lumpur (KL) as one of its new flight destinations in the region, in line with plans to further expand its route network into Asia and the Far East region. (Source: Malaysian Reserve)

Logistics: Project to boost east coast economy. Kuantan Port City (KPC) is projected to attract up to RM38b investments by 2020 and help the East Coast Economic Region (ECER) and the country's first Special Economic Zone located within it to be an industrial and logistics hub. The ECER encompasses Kelantan, Terengganu, Pahang and the Mersing district in Johor. (Source: The Star)

Mah Sing: RM3b projects in the pipeline. Mah Sing Group is ready to roll out RM3b worth of new launches this year on positive domestic economic outlook. Mah Sing's group MD says there will be sustained demand in mid-tier to high-end properties, both landed and high rise in the residential, commercial and industrial segments. Mah Sing's new launches will comprise a mix of landed residential, niche size serviced residences, shop offices, retail units, small office/home office and industrial. (Source: Business Times)

Maybank: Set for windfall from sale of BII shares. Malayan Banking Bhd has sent out a request for proposals (RFP) for the secondary placement of at least a 17% block in Bank Internasional Indonesia (BII), which could net some RM2.35b in proceeds. Maybank is sitting on its investment in Bii which is about RM9b, inclusive of the rights issue. Today, BII has a market capitalization of RM13.8b (based on IDR700 per share). (Source: The Edge Weekly)

Media Prima: Radio Networks stays focused on online media. Media Prima Radio Networks (MPRN) CEO Seelan Paul said radio is no longer just about airtime spot. Online media is growing leveraging on online portal is crucial to stay attractive in this business. Radio is a great medium to work together with online media. (Source: Business Times)

RHB Capital: See a change at the top? Speculation is rife that a change is imminent in the top management of RHB Capital Bhd. According to industry sources, the group's CEO Datuk Tajuddin Atan, may leave the banking froup to take up the top position at Bursa Malaysia Bhd, replacing Datuk Yusli Mohamed Yusoff. (Source: The Edge Weekly)

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Maybank IB Research

In this edition of Weekly Equity Information Flyer, we highlight two companies for you all.

1. Hirotako Holdings Berhad, the key player in the automotive components making industry in Malaysia and Asean with strategic technical and equity partners inclusive of Toyota, Proton, Ford, Perodua, Honda and Volvo.


Price RM1.93


Target Price RM2.38

2. Mah Sing Group Berhad, the leading developer at the forefront of building quality homes and projects in strategic locations spread throughout Malaysia's economic nexus and property hotspots namely Kuala Lumpur and Klang Valley, Johor Bahru (Iskandar Malaysia) and Penang Island (North Corridor Economic Region).

Price RM2.26

Target Price RM2.88


Happy reading and Happy Chinese New Year!!

Thank you.

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Maybank IB Views

SECTOR UPDATE
Property: Overweight
Buoyant outlook

Maintain Overweight. The Malaysian Property Summit 2011 on 18 January reinforced our bullish stance on the sector. We reiterate that the upcoming MRT project is a catalyst for a structural change in the Greater KL / Klang Valley property scene, resulting in a positive re-rating of property/land values. Glomac and Mah Sing offer higher upside to our target prices after strong share price performance by SP Setia, our top pick for 2011. For REITs exposure, we like SunREIT.


RESULTS REVIEW
Tenaga RM6.49: Sell
Still waiting for the silver bullet Shariah-compliant

Strong topline underpinned by commercial and domestic users. 1QFY11 revenue of RM7.7b (5.3% YoY, -1.8% QoQ) was better than our expectation driven by strong power demand. Reduced excess capacity payment of RM200m partially offsets the impact of higher coal price (+RM168.8m YoY). However, Tenaga is facing severe headwinds from rising coal prices, dwindling gas supply and its silver bullet solution (tariff increase) is opaque at best. No change to our earnings forecasts and DCF-based target price for now. Maintain Sell.


ECONOMICS
CPI, Dec 2010
Inflation rate creeping up...

Consumer price index (CPI) rose by 2.2% YoY in Dec '10 (Nov '10: +2.0% YoY), the fastest pace in 18 months, mainly reflecting the impact of another round of fuel and food (sugar) subsidy reduction. MoM, it gained for the third consecutive month (Dec '10: +0.4%; Nov '10: +0.3%; Oct '10 +0.3%). For the whole of 2010, inflation rate was 1.7%. No change to our 2011 inflation rate forecast of 2.5%, and we still expect the Overnight Policy Rate (OPR) to be hiked by 50bps to 3.25% in 2H2011.


Technicals
The FBM KLCI closed lower by 3.53 points at 1,566.51 yesterday. Its resistance areas of 1,566 and 1,576 may cap market gains, whilst the obvious support areas are located at 1,545 and 1,561.
Trading idea for today is a TAKE PROFIT call on FABER.


Other Local News
AirAsia: Weighs listing in US or HK, spurred by demand for its shares from foreign investors. Earlier reports stated the low-cost carrier was looking at Thailand as an option for a secondary listing, in an effort to become a full-fledged Asean airline. Now, however, the company has set its sights on more mature markets, considering the strong buying interest in AirAsia's shares from investors in the US and Europe. (Source: Business Times)

Auto: TIV to hit record high this year. New motor vehicle sales are expected to grow by a modest 2.1% this year as car ownership in the country is already high even by developed-country standards, said the Malaysian Automotive Association (MAA). (Source: The Sun)

Aviation: Algae have potential as biofuel for aviation industry. Professor Dr Nor Aieni Mokhtar, the national oceanography directorate at the Ministry of Science, Technology and Innovation said unlike other biofuels such as bioethanol from corn and biodiesel from soyabean, the lipids from micro-algae can be transformed into jet fuel. (Source: Business Times)

EPF: Buys RM720m building on London's Fleet Street. The Employees Provident Fund (EPF) acquired a third office building of 225,000 sq ft on Fleet Street for £148m (RM717.8m). The building has housed law firm Freshfields Bruckhaus Deringer since 1989 and has over 10 years left on its lease. (Source: The Edge Financial Daily)

F&N: Targets Brunei, Thailand expansion. Fraser & Neave Holdings Bhd (F&N) is seeking to become a regional food and beverage (F&B) giant and has secured rights to market, distribute and sell its products in Thailand and Brunei. (Source: Malaysian Reserve, Business Times)

MTD: Road blocks in privatization. The bid by joint offerors (holding a stake of more than 50% in MTD Capital Bhd) to take over the remaining shares in the group at RM9.50 per share may not materialize now that the stock has closed above the offer price. (Source: The Edge Financial Daily)

Pasdec: To launch RM252m projects. Kuantan-based property developer Pasdec Holdings Bhd plans to launch at least RM252m worth of properties in Pahang this year. These include integrated developments Pasdec Persona, Pasdec Perdana and Pasdec Idaman as well as upscale mixed commercial developments Pasdec Mahkota and Pasdec Avenue. (Source: The Edge Financial Daily)

Steel: Vale project may cost up to RM14b. Brazilian mining giant Vale International SA's construction costs in its iron-ore transshipment project will be between RM9b and RM14b over a five-year period, and the project will likely start in July or August this year. Perak government has no equity participation in the project while local companies will be subcontracted to participate in the trickle-down activities. They will include Malaysian companies involved in iron ore, steel, fabrication, shipbuilding, canning and tin. (Source: The Star)

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Maybank IB Views

INITIATING COVERAGE
Petronas Chemicals RM6.02: Buy
The new Big Show

Golden opportunity not to be missed. PCG is an opportunity to participate in: (i) the world's most consistently profitable petrochemical company; just after its earnings trough, with (ii) huge earnings growth prospects, (iii) low indebtedness profile and (iv) generates significant free cash flow. PCG is the world's 22nd largest chemical company by market value, and it will inevitably be included into major chemical indices - a strong pull factor to international investors. Valuations are attractive compared to global peers' forward PERs and EV/EBITDAs.


Technicals
The FBM KLCI rose 3.55 points to 1,566.49 yesterday. Its resistance areas of 1,569 and 1,576 may cap market gains, whilst its firmer support areas are located at 1,552 and 1,566.

Trading Idea for today is a Firm Buy call for BERNAS and a Short-Term Buy call for DELEUM.


Other Local News
TNB: Awards RM2.15b jobs for Ulu Jelai project. Tenaga Nasional Berhad (TNB) has awarded the Ulu Jelai Hydroelectric Project construction jobs worth RM2.15b to two consortiums. The Project will involve the construction of one dam and the installation of two hydro turbines and generators in an underground power station with a total installed capacity of 372MW. The Project is expected to be completed and operational by July 2016. (Source: Bursa Malaysia)

SP Setia: Leads race for PICC deal. SP Setia Bhd has emerged as the leading contender to build the Penang International Convention Centre (PICC) on the grounds of the Penang International Sports Arena (Pisa) that is likely to cost over RM200m. SP Setia is likely to get a 30-year concession to build and operate the convention centre, which will include other components like a hotel and retail outlets. (Source: Business Times)

CIMB: Not in talks with Affin. CIMB Group has clarified that it is not involved in any discussions relating to a possible acquisition or merger with Affin Bank or any of its related companies. (Source: Business Times)

Mah Sing: Sets 2011 sales target of over RM2b, PNB ceases to be major shareholder. Mah Sing Group Bhd has set an ambitious sales target of RM2b to RM2.5b for the current financial year ending Dec 31 (FY11), which will be a 70% increase over the RM1.5b recorded in FY10. Separately, Permodalan Nasional Bhd (PNB) has ceased to be a substantial shareholder after it disposed 1.5m shares in the company, reducing its interest to less than 5%. (Source: The Star)

Perodua: Allocates RM614m capex. Perodua has set aside RM614.2m for capital expenditure (capex) this year. An amount between RM250m and RM300m of the capex will be utilised for the development of a new model, which is expected to further boost overall sales. (Source: The Star)

Green Packet: Capex at RM250m this year. Green Packet Bhd expects to spend up to RM250m in capital expenditure (capex) this year to expand the number of sites to 1,600 from 1,000 at present. Consequently, coverage would be increased to 52% (from 45%) of Peninsular Malaysia's population by end of 2011. P1 will focus on expansion this year by providing wider coverage, enhancing capacity and quality. (Source: The Edge Financial Daily)

Plantation: Suppliers expect 4%-20% increase in fertiliser prices. Fertiliser, which represents about 40% of production cost for local oil palm planters, are likely to trend higher by 4 to 20% this year. For murate of potash (MOP), the most popular fertiliser among local planters, fertiliser companies are expecting a price increase of about 5.8% to RM1,500 per tonne this year from RM1,417 per tonne last year. (Source: The Star)

Market: 15-20 foreign will be listing on Bursa this year. 15-20 foreign companies are expected to be listed on Bursa Malaysia this year from three last year as an initiative to develop an international board to list foreign securities by Bursa Malaysia. The guidelines to facilitate the implementation of the separate board for listing international companies would be finalized soon. (Source: The Edge Financial Daily)

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RHBInvest Research

Top Story

• Time to take some bold steps?
• Target price of RM11.10, upgrade to Outperform (from market perform).

Sector Call


Property:

• The “re-pricing” wave is coming to Johor.
• Maintain Overweight on the sector. Our picks are: SP Setia (OP, FV = RM6.95), and IJMLD (OP, FV = RM3.50) for big caps; and KSL (OP, FV = RM2.78) and Mah Sing (OP, FV = RM2.50) for small-mid caps. For Johor exposure, KSL is our fundamental pick.

Corporate Highlights

Faber:

• Non-renewal for two of its UAE contracts
• Fair value has been cut to RM2.35/share (from RM3.77 previously).
• We downgrade our call on the stock to Underperform, from outperform.

CIMB: Outperform

• CIMB Niaga loan growth to stay healthy
• No change to forecasts. Fair value of RM9.80 and Outperform call maintained.

IOI: Outperform

• Exchange of land
• The reason for the land exchange is that IOI has embarked on a redevelopment of a portion of the golf course land owned by Resort Villa into a shopping complex as part of its IOI Resort City development.
• Forecasts are unchanged.
  
• We maintain our target price of RM7.65 and our Outperform call on the stock

TNB: Market Perform

• TNB yesterday signed two agreements for the Ulu Jelai Hydroelectric project.
• We maintain our indicative fair value of RM7.50.

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RHBInvest Research

Top Story: Property

• Changing industry dynamics point to interesting times ahead
• We maintain our Overweight stance on the sector.
• Our picks for the year are: SP Setia (OP, FV = RM6.95 (from RM6.50 previously), and IJMLD (OP, FV = RM3.50) for big caps; and KSL (OP, FV = RM2.78) and Mah Sing (OP, FV = RM2.50) for small-mid caps.

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Maybank IB View

ACQUISITIONS / DISPOSAL
IJM Land / MRCB RM2.97 / RM2.12: Not Rated
A merger of equals

A win-win proposal. The IJML-MRCB merger will result in the largest property group with a potential market value of RM8.9b, a combined landbank of c.7,039 acres, and a combined GDV of RM36b, surpassing UEML-Sunrise's and SP Setia's. The merged entity will have a sizeable 39.8% public spread, hence raising liquidity. An enlarged balance sheet also improves its chances of taking part in the development of government land. IJML's shareholders gain better upside based on the share exchange prices of RM3.65 for IJML and RM2.30 for MRCB.


RESULTS REVIEW
IJM Corporation RM5.69: Buy
Property merger unlocks value Shariah-compliant

Upgrading target price. RM178m 1HFY11 core net profit (+29% YoY) before RM31m forex translation gain was in line, at 47% of our full-year forecast. No change to our core earnings forecast but we incorporate the RM31m forex gain, raising FY11 bottomline forecast by 6%. We lift our RNAV-based target price to RM6.40 (+16%) after incorporating new IJM Land's (IJML) implied value for its merger with MRCB and higher valuations for the construction business. IJM Corp stays a Buy.


Notion VTEC RM1.63: Buy
Fortune changes, risk abates Shariah-compliant

Upgrade to Buy. 4Q results were better than expected, with 4Q net profit rising 2.8-fold QoQ and EBITDA margin expanding by 10.2-ppt QoQ. We upgrade NVB to a Buy (non-consensus) with an unchanged RM1.95 TP. On balance we believe the negatives have been priced in after a 37% fall in share price following the disastrous 3Q results. Valuations are inexpensive, with a 4-6x FY11-12 PER and improving business outlook.


COMPANY UPDATE
Mah Sing RM1.79: Buy
Further expand its foothold in Penang Shariah-compliant

Buys land on Penang island. We are positive on the recent land acquisition in Penang island due to its attractive pricing and strategic location. The land is expected to enhance our RNAV by 4.8%. We continue to like Mah Sing given its undemanding valuation, 30% 3-year EPS CAGR and fast turnaround strategy. We lower our forecasts by 0.6-2.3%, but raise RNAV-based TP to RM2.60. Reiterate Buy.


IPO: Careplus Group RM0.23
Small glove-maker turns ambitious Shariah-compliant

Making debut on ACE Market. Careplus, a small latex glove-maker, is scheduled for listing on 6 Dec '10. The company expects capacity-driven earnings growth from FY12 onwards, but we see limited upside to its retail IPO price owing to: (i) fair valuation at its IPO price relative to small sized peers; and (ii) the presence of industry headwinds (i.e. persistently high latex prices, appreciating Ringgit).


Technicals
The FBM KLCI fell 15.67 points to 1,487.53 yesterday. Due to the significantly weaker tone in the USA last night, we may see the FBM KLCI in a bearish mode today too. Its resistance areas at 1,487 and 1,510 will cap market gains, whilst its weaker support areas are located at 1,465 and 1,480.

Our trading idea for today is a TAKE PROFIT call on LIONIND.


Other Local News
Sunway, SunCity: Shares suspended on merger talks. Shares of Sunway Holdings Bhd and Sunway City Bhd (SunCity) have been suspended from trading for two days since yesterday amid speculation that they may be merged. Both companies are expected to make an announcement today. (Source: Business Times)

Tan Chong: Teana to boost Nissan’s local market share. Edaran Tan Chong Motor Sdn Bhd (ETCM) expects the launch of its new Nissan Teana luxury sedan to boost the company's local market share. The company had already received over 1,000 bookings for the Teana. For the Malaysian market, the Teana will be sold with three engine options 136bhp, 2-litre and 182bhp V6, 2.5-litre which are assembled in Tan Chong Motor's Serendah factory, and the 252bhp V6, 3.5-litre which is fully imported from Japan. (Source: The Star)

Parkson Holdings: Acquires Shantou Parkson for RM37m. Parkson Holdings Bhd, via Hong Kong-listed unit Parkson Retail Group, has acquired 100% interest in Shantou Parkson Commercial Co Ltd for RMB80m (RM37.3m). Shantou Parkson was the owner and operator of the Parkson branded department store at South City Shopping Mall, Shantou City, Guangdong Province, China. (Source: The Star)

YTL, YTL Land: YTL Corp plans revamp of property division. Conglomerate YTL Corp Bhd plans to house all its property development assets and projects under YTL Land & Development Bhd (YTL Land). It would dispose its property assets and projects in Malaysia and Singapore to YTL Land net of outstanding intercompany balances for RM476.1m. (Source: The Star)

Gadang: Bids for more than RM2b jobs. Gadang Holdings Bhd is bidding for several engineering and construction projects totaling more than RM2b. Among the tenders are the proposed development of the Women and Children Hospital in Kuala Lumpur announced under the budget 2011, the 300MW Kimanis power plant in Sabah, 1,000MW Manjung power plant in Perak and the Shah Alam Hospital. (Source: The Edge Financial Daily)

Property: M'sian city apartment prices second lowest in region. The average price of city apartments in Malaysia is the second lowest compared with other countries in the region. Global Property Guide (GPG) said according to its research, only Indonesia offered city apartments that were priced lower than Malaysia. In comparison, the average price of city apartments in Singapore is almost eight times more than in Malaysia, beating even Australian prices, which are almost five times higher than Malaysian city apartments. (Source: The Star)

Market: Bursa plans to attract more SRI funds with ESG index. Bursa Malaysia Bhd plans to attract more Socially Responsible Investment (SRI) funds into Malaysia by constructing the Environment, Social and Governance (ESG) Index in 2012. Bursa Malaysia CEO Datuk Yusli Mohd Yusoff said the exchange is working with various relevant authorities of similar global-based listed indices. (Source: The Malaysian Reserve)

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