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.