RHBInvest Research

Corporate Highlights

Sunway REIT:

News Update
Buying Putra Place.It comprises a retail podium, an office tower, a five-star hotel, service apartments and penthouses as well as 1,323 car parking bays.
No change in forecasts, pending more details from management. Maintain Market Perform with a fair value of RM1.05.

Glomac:

• 3QFY11 Results
• Strong set of results
• Fair value is raised to RM2.03 (from RM1.93) .We maintain our Market Perform call. The stock would be appealing to investors who are looking for yields.

Adventa:

• 1QFY11 Results
• Hit by high latex prices and weaker US$
• Fair value has been lowered to RM2.17 (from RM3.63).
• We downgrade our recommendation on the stock to Underperform.

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Maybank Invest Recommended Share Counter

1. Top Glove Corporation Berhad (TOPGLOV)
Since its inception in Malaysia in 1991, it has embarked on an impressive expansion plan to become the world’s largest rubber glove manufacturer.

2. Adventa Berhad (ADVENTA)
ADVENTA is principally involved in the manufacture and distribution of medical products and devices for the healthcare industry.

Since the Japanese earthquake, tsunami and nuclear plant woes, the demand for rubber had fallen. Thus rubber prices had also plunged. This would benefit the rubber glove manufacturers (rather than nitrile glove players like Hartalega). In this sense, these 2 rubber gloves stocks would benefit due to the lower rubber prices. Need for health-care products like gloves had risen since the Japan tsunami of 11 March 2011. Therefore, we strongly advocate some investment interest in this neglected sector for now.

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RHBInvest Research

APM Automotive:

Visit Note

¨ Near Term Headwinds To Cap Share Price

¨ We are downgrading our call to Market Perform (from Outperform) and trim our fair value to RM5.50 (from RM6.10).



Sector Call



Rubber Glove: Improvement In Sentiment On The Back Of Falling Latex Prices

Sector Update

Top Glove Market Perform (FV: RM5.38)

Kossan Outperform (FV= RM5.12)

Adventa Outperform (FV=RM3.63)

Hartalega Market Perform (FV=RM6.14)



¨ Maintain neutral stance on the sector. Kossan remains our top pick thanks to its cheap valuation and for its well-regarded management.



Corporate Highlights



Top Glove:

Results Note

¨ Margin Boost From Latex Price Could Lift 2HFY11 Earnings

¨ Our fair value has been raised to RM5.38 (from RM4.10) and as such, we upgrade our call on the stock to Market Perform from Underperform.

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Maybank Information Equity Flyer

This week, we highlight to you two companies for your reading information.

1. CB Industrial Product Holdings Berhad, a market leader in farm equipment and replacements parts makers with international presence.

2. Adventa Berhad, a leading medical glove and hospitals disposables manufacturers that focuses on producing and distributing quality and innovative medical products for surgeons and healthcare personnel the world over.

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RHBInvest Research

Petronas Chemicals:
New Coverage
The New Chemical Player In Town
Initiate with Outperform call and fair value of RM7.25/share


Corporate Highlights


CI Holdings:
Briefing Note
Bitter Days Ahead Surprise Sugar Bomb Dropped
Fair value is reduced to RM3.88 (from RM4.90 previously).
We downgrade our call on the stock to Market Perform.


Adventa:
Company Update
Share Price to Remain Buoyant On Talks of Takeover.
Our fair value have been raised to RM3.00 (from RM2.21).
We reiterate our Outperform call on the stock.


Fajarbaru:

2QFY11 Results
Slow 1HFY06/11 but stronger 2H ahead
Fair value is RM1.37. Maintain Outperform.

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RHBInvest Research

Top Story

Adventa:
Core FY10 Earnings Expected To Be Flat YoY
Upgrade to Outperform from Market Perform previously.
Fair value is RM2.47.

Sector Call


Semiconductor:

Oct chip sales flat mom

• Unisem: Fair Value RM2.31 OP
• JCY: Fair Value RM0.64 UP
• MPI: Fair Value RM5.17 UP
• Notion: Fair Value RM1.68 UP
• Maintain our Neutral call on the sector.

Corporate Highlights


Dayang:
Disposing Of Borcos For RM135m Cash
Fair value is reduced from RM3.86 to RM3.36.
Maintain Outperform.


Technical Highlights

Daily Trading Strategy:

• Sell Into Strength…
• Yesterday’s surprise jump on the bargain-hunting activities has led the FBM KLCI to close more positive.
• The buying momentum, if it continues, is likely to spur more buying, hence leading the index to retest the key resistance at 1,525 and the record level of 1,531.99 soon.
• However, on the regional markets sentiment that we think could still dampen the local trading behavior should the regional markets fall rapidly in the near term.
• Market sentiment will turn positive only if it moves into a higher trading zone from 1,531.99.

Daily Technical Watch: Petra Perdana

• Further rally possible if it removes the RM0.925 level soon.
• Immediate Support = RM0.74
• Immediate Resistance = RM0.925

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RHBInvest Research Highlights 21st October 2010

Top Story

Media:

• 9M10 print and tv adex up by 18.2% yoy
• Our Top pick is Media Prima (FV=RM2.75)
• We maintain Outperform call on Media Chinese (FV=RM1.21)
• Trading Buy call on Star (FV=RM4.34).
• Maintain Overweight for the sector.

Macro View

Economy:

• Leading index bounced back in Aug
• Pointing to resilient economic activities ahead.

Sector Call

Rubber Gloves:

• Still cautious on near-term outlook.
• Maintain Underperform call on Top Glove (FV=RM5.40)
• Market Perform call on Adventa (FV=RM2.47).
• As for Hartalega (FV=RM5.64), we downgrade our call to Market Perform.
• No change to our Neutral call on the sector.

Corporate Highlights

Puncak Niaga:

• Eyeing Hogenakkal water project in India .
• Fair value is RM3.01. Maintain Market Perform.

WCT:

• Secures RM1.36bn building job in Qatar and RM128m hospital project in Sabah .Fair value is raised to RM2.56 from RM2.30. Maintain Underperform.

Axis REIT:

• Quattro West started to contribute.
• Maintain Outperform call on Axis REIT with fair value of RM2.67.

BAT:

• Impact of less than 20’s ban cushioned by relaunch of Peter Stuyvesant.
• Fair value is thus raised to RM42.92 (from RM42.90 previously). Underperform.

Technical Highlights

Daily Trading Strategy:

• Recapturing the 10-day sma will renew upbeat sentiment.
• Further recovery to above the 10-day SMA today will attract further follow-through buying support in the near term.
• And once the recent high of 1,503.82 can be cleared, the short-term technical scenario will return to positive.
• On the downside, the solid medium-term support at 1,450 level and the 40-day SMA of 1,458 are expected to keep sellers at bay.

Daily Technical Watch: Alliance Financial Group

• Medium- to long-term uptrend remains largely intact.
• Immediate Support at RM3.10
• Immediate Resistance at RM3.30

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