RHBInvest Research

Top Story: Property – Overweight

Sector Update
The rising FDI into Penang should continue to hold up property values in the state.
Our picks for the sector remain the same: SP Setia (OP, FV = RM7.39) 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. Although we currently do not cover E&O and Benalec, we have an indicative fair value of RM1.85 and RM1.93 respectively for the two stocks.

Corporate Highlights

QL Resources:

• Company Update
• Highlights from RHB’s Food and Agri Day.
• The shares go ex for the 1-into-2 share split today. Our fair value is raised to RM3.44 (from RM3.25 adjusted for the share split)
• We maintain our Outperform call on the stock.

Hartalega: Market Perform

• 3QFY11 Results
• Demand for nitrile gloves still healthy
• We have raised our fair value for Hartalega to RM6.14 (from RM5.64), we maintain our Market Perform call on the company.