Maybank IB Views

COMPANY UPDATE
Malaysia Marine and Heavy Engineering Holdings RM5.95: Buy
Bags Telok Gas job, more to follow Shariah-compliant

A direct proxy play to PETRONAS' domestic capex programmes. We are positive on MMHE's latest Telok Gas project job win. We expect more contract wins to follow, foreseeing strong orderbook visibility extending beyond 2013. The FLNG, TLP and RAPID projects are among the high-ticket items that would propel orders and earnings growth. MMHE is among our top picks in the sector. Maintain Buy with a RM8.00 target price, based on 20x 2013 EPS.

RHB Capital RM7.20: Hold
The alternative scenario

Hold maintained. Our RHB Cap-OSK analysis thus far has assumed a merger scenario involving a share exchange at the listed entity levels of RHB Cap and OSK Holdings. If RHB Cap exchanges shares for OSK Investment Bank (OSK IB) instead, the overall cost is theoretically lower, by our estimates, subject to final pricing. Our Hold call on RHB Cap is maintained, with an unchanged RM7.60 TP (2012 P/BV target of 1.3x, ROE: 13.3%). At this juncture, we do not foresee an immediate upward re-rating of the enlarged RHB Cap if the merger goes through.

ECONOMICS
China: 3Q 2011 GDP
Soft landing so far...

3Q 2011 real GDP marked the third consecutive quarter of mild moderation in growth… China's economy continued to grow YoY by more than +9% in 3Q 2011, but the pace slowed to +9.1% from +9.5% in 2Q 2011. Consensus estimate was +9.2%. QoQ growth remained at 2% or more so far this year i.e. 3Q 2011: +2.3%; 2Q 2011: +2.4%; 1Q 2011: +2%; 4Q 2010: +2.4%. YTD, the economy expanded by +9.4% (Jan-Sep 2010: +10.6%; 2010: +10.4%).

Technicals
The FBM KLCI plunged 25.41-points to close at 1,439.94 yesterday. Its resistance areas of 1,439 and 1,465 will cap market gains, whilst the obvious support areas are located at 1,403 and 1,433.

Trading Idea is ENG

Other Local News
Proton: Looks to commercialise electric vehicles by 2013. Proton Holdings Bhd is looking to commercialise its electric vehicles in 2013. The Proton Saga EV is expected to be priced at RM70,000 and Proton Exora Range Extender at about RM100,000. Proton and government are also working on a mechanism to build the infrastructure for electric vehicle charging centres. (Source: The Edge Financial Daily)

MAS: Takes over Firefly's jet services. Malaysian Airline Systems Bhd (MAS) has embarked on a network rationalization programme in which its subsidiary, Fly Firefly Sdn Bhd, will concentrate on serving short-haul turboprop operations and Malaysia Airlines focus on enhancing its premium full-service offering. The takeover of Firefly's jet services on Dec 4 is part of the service separation plans under the business realignment exercise which addresses the continuing heavy losses being incurred by Firefly's jet operations. (Source: The Edge Financial Daily)

UEM: To build hospital? UEM Group Bhd and its joint venture partner Najcom Sdn Bhd are understood to have bagged the contract to build a women and children's hospital in Kuala Lumpur costing between RM700m and RM900m. (Source: The Edge Financial Daily)

Top Glove: To spend RM100m on plant upgrades. Top Glove Corp Bhd has allocated RM100m to upgrade and expand its factories at Sadao in Thailand. It is also looking at making more value-added variants at its Banting and Ipoh facilities. Currently, Top Glove has 21 factories and 395 production lines with a total production capacity of 35.3b pairs of gloves per annum. By May 2012, Top Glove targets to produce 41.6b pieces of gloves per annum.

Healthcare: Parkway Pantai's international push. Parkway Pantai Ltd aims to triple the revenue contribution from its international operations to 33% by expanding in Asia. It is already one of the region's biggest healthcare groups, operating more than 3,000 beds under 16 hospitals currently, and is in the process of adding another 2,300 beds in eight new hospitals from 2013 onwards. Apart from three new hospitals in Malaysia, Parkway Pantai is also building five other hospitals in Singapore, Vietnam, China, India and the United Arab Emirates. (Source: Business Times)

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Maybank IB Views

COMPANY UPDATE
Malaysia Airports Holdings RM6.53: Buy

Thriving under adversity. MAHB's April 2011 traffic statistics reveal a strong 16.3% YoY passenger growth (4M 2011: +13.0% YoY). This is above industry average and makes MAHB's 2011 guidance of 8% traffic growth look like a pushover target. Cargo volumes shrunk by 6.2% YoY, consistent with the global collapse of the freight market. Maintain Buy; no change to our earnings forecasts and RM7.12/share DCF-based target price.

ECONOMICS
Industrial Production Index (IPI), Apr '11
Unexpected decline to be short-lived…

April's industrial production (IP) growth unexpectedly fall 2.2% YoY (revised Mar '11: +2.9% YoY; Maybank IB: +2.2% YoY; Consensus: +2.5% YoY) as the MoM drop of 7.6% MoM was more than our estimate of a 3% MoM decline. Malaysia joined Singapore and Thailand in posting lower IP in Apr on Japan's supply chain effect, with E&E and auto industries being the drag. However, indicators like Japan's PMI, imports of intermediate goods and manufacturing loans statistics point to a "short-lived" dip.

RESULTS REVIEW
S P Setia RM4.10: Buy
Earnings uptrend continues Shariah-compliant

Reiterate Buy. SPSB's RM121m 1HFY11 core net profit (+35% YoY) track expectations. YTD sales at RM1.7b has also met 55% of its RM3b target for FY11. Including e.RM1.5b sales/bookings from KL Eco City (KLEC), YTD sales would be c.RM3.1b (beats full-year target by 5%). We are bullish on SPSB's 2H performance, driven by strong sales at KLEC and potential RM8-10b GDV worth of new landbank. We maintain earnings forecasts and RM4.75 RNAV-based TP.

Technicals
The FBM KLCI closed marginally lower by 0.90 points and ended at 1,550.89 yesterday. Its resistance areas of 1,554 and 1,568 will cap market gains, whilst the obvious support areas are located at 1,537 and 1,551. We expect the FBM KLCI to remain quiet today, as the initial gains (following the American markets’ rise last night) could be curtailed by the pre-weekend profit-taking activities in the latter part of the day.

Daily trading idea is a Short-Term Buy call on MWE.

Other Local News
MAS: Final assembly of MAS A380 planes begins. The first Malaysia Airlines' (MAS) A380 has entered the Airbus final assembly line in Toulouse, France, for the final production phase. MAS has six A380s on order with deliveries due to begin in 2012. (Source: The Star)

UEM: In RM850m Nusajaya development project with Iskandar. UEM Land Holdings Bhd is collaborating with Iskandar Investment Bhd to develop retail and residential units in Nusajaya, Johor with a gross development value of RM850m. UEM Land owns 55% equity interest in that company while the remaining is under Iskandar. (Source: The Star)

Benalec: Unit target Mid-east investment with OIC Today. Benalec Bhd subsidiary has formed a strategic alliance with OIC Today magazine to attract investment from the Middle East for a proposed mixed commercial and tourism project in Klebang, Melaka. (Source: Business Times)

O&G: Perak approves RM5.8b investment in LNG project. The Perak government has approved a 60-ha site in Tanjung Hantu, Manjung for a liquefied natural gas (LNG) project involving an investment of RM5.8b that would be undertaken by Atigas Technology Sdn Bhd. The government is expected to save RM2b in subsidy a year because Atigas will sell the gas at the same subsidized price. (Source: The Edge Financial Daily)

Banking: Bank Mualamat still in merger mood. Bank Muamalat Malaysia Bhd is still keen to merge with a rival to build a mega Islamic bank, despite its failed attempt at courting Bank Islam Malaysia Bhd. The bank's pursuit of Bank Islam was driven by its largest shareholders' need to pare its stake in the bank and the desire by both its shareholders to create a bigger entity that is more relevant in the market. (Source: Business Times)

Market: MMHE to replace MAS in index. Malaysia Marine and Heavy Engineering will replace Malaysia Airlines in the FTSE Bursa Malaysia KLCI following the semi-annual review of the FTSE Bursa Malaysia Index Series. (Source: The Star)

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RHBInvest Research

Top Story: IJM Land

• Company Update
• IJMLD shares’ performance was flattish (YTD -2%) vs. Mah Sing’s 41% and SP Setia’s 11%.
• We believe the current valuations on IJMLD are decent, given the unchanged solid fundamentals, strategic landbank exposure and >50% FY12 net earnings growth.
• The value of the 2000-acre Canal City land will be unlocked next year. The project will be a bread-and-butter township development.
• IJMLD is our top pick besides Mah Sing. Maintain Outperform with a higher FV of RM3.28 (from RM3.18).

Corporate Highlights

UEM Land:

• News Update
• Secured maintenance contract
• Minimal impact on net profit. We expect the contract to yield a gross margin of 20%.
• No change to forecasts, Market Perform call and fair value of RM2.80.

Parkson: Market Perform

• News Update
• Clarity on the Centro deal
• For the time being, given that there is no cash involved in the deal, the cost to Parkson is a 9.9% earnings dilution in its Malaysian and Vietnamese operations earnings, which is to be transferred into Parkson Asia.
• As highlighted, the deal also involves Parkson granting MS a put option which, if exercised by June 2014, would require Parkson to purchase MS’ 9.9% stake in Parkson Asia at a total value of RM112.6m.
• Our SOP-derived fair value is maintained at RM5.90. Maintain Market Perform for the stock.

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Maybank IB Views

MARKET COMMENTS
Special Feature
Sarawak goes to the polls

Opportunity to accumulate. The Sarawak state assembly will dissolve today, paving the way for the 10th state elections. Share prices of Sarawak stocks had historically corrected after the dissolution of the state assembly post a short run-up, but this time around, share prices of most stocks have been down, affected by the external uncertainties. Any further weakness is an opportunity to accumulate the Sarawak construction stocks which are expected to see some major awards in the next few weeks. Hock Seng Lee (Buy; TP: RM2.30) is our pick.

Market Focus
Japan's disaster: Assessing the impact

Yen stabilises. G-7's agreed intervention in selling the Yen has bought back stabilisation, resulting in the currency pulling back to close at 80.58 per USD last Friday against a high of 76.25. The Yen, which rose a high 7.3% post the 11 March earthquake and tsunami at north-east Japan but prior to the G-7 agreed intervention, closed just 1.5% up since the disaster and after the agreed currency intervention. The earlier Yen climb was in anticipation of overseas money repatriation to Japan for rebuilding efforts. A stable Yen would limit the damage on Japanese exporters' earnings once factories restart.

SECTOR UPDATE
Banking: Overweight
Nipping the CC problem in the bud

System credit card (CC) risk manageable. System CC risks remain manageable at this point in time, and we see little impact to the local banks. Nevertheless, with high household debt, the threat of inflation negatively impacting disposable income levels, as well as signs of CC loan growth momentum beginning to outpace overall industry loan growth, BNM's vigilance and speed in nipping this issue in the bud is highly commendable. No change to our earnings forecasts and calls.

Technicals
The FBM KLCI rose 8.27-points and closed at 1,503.89 last week. The weaker support areas for the FBM KLCI are located in the 1,474 to 1,500-zone. The very firm resistance zone of 1,503 and 1,576 will see heavy liquidation activities.

Trading idea for today is a TAKE PROFIT call on TENAGA.

Other Local News
TM: Hopes to launch mobile voice services by year-end. Telekom Malaysia Bhd (TM) hopes to launch its mobile voice services by the end of this year. The company signed a memorandum of understanding with Celcom Axiata Bhd recently. Both companies will look into the collaborations in several areas, which include the possibility of TM becoming an MVNO (mobile virtual network operator) via Celcom's network. (Source: Business Times)

UEM Land: RM6b invested in Nusajaya. A total of RM6.2b in new investments from local and foreign investors have been received for development projects in the eight catalyst developments (except EduCity components) in Nusajaya. The investments included RM500m from Biocon Ltd, India to invest at SiLC (Southern Industrial and Logistics Clusters), RM2.3b Canal Homes at Puteri Harbour by Bandaraya Development Bhd and RM500m by Pantai Group for the Gleneagles Hospital at Medini. (Source: The Star)

Scomi Engineering: Likely to bag Brazillian monorail job. Scomi Engineering Bhd and its Brazilian consortium partners are likely to bag a USD782 m (RM2.4b) monorail job in Manaus, Brazil. (Source: The Edge Financial Weekly)

Rubber glove: Rubber price expected to be influenced by Thai decision. Malaysian rubber prices are expected to be influenced by the outcome of Thailand's national rubber committee meeting this week. The meeting would discuss whether to ask other major producers, Malaysia and Indonesia, to join the move to prevent a further drop in prices. (Source: The Star)

Plantation: EU not supporting NGOs against palm oil. The European Union is not using environmental non-government organisations as a "fifth column" to help it achieve its Renewable Energy Directive (RED) which places palm oil for biofuel at a disadvantage. RED is a result of a legislative decision between the council and parliament. RED is advancing sustainability in palm oil especially biofuel but it is not restricted to palm oil only. (Source: Business Times)

Aviation: Airport Operator interested in getting AirAsia X to fly to Munich. Munich Airport is interested to get AirAsia X to fly to Munich. (Source: Bernama.com)

Property: IRDK in reverse takeover talks. IRDK Group, a property development and construction outfit, says it is in talks with several listed property developers and manufacturing firms here for a reverse takeover. It expects a deal to materialise within the next 12 months to 18 months. (Source: Business Times)

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Stocks to watch: Sunway, Fajarbaru, oil and gas, Allianz

KUALA LUMPUR: Stocks on Bursa Malaysia are expected to trade in a tight range with some downside pressure on Monday, March 7 as investors worry about the impact of record oil prices on the economy while consumers cope with the rising costs of food.

The revolt in Libya continues as Muammar Gaddafi's forces captured part of a town in western Libya on Friday, but rebels said they had taken the coastal oil town of Ras Lanuf, extending the territory they control in the east of the country.

The fighting appeared to confirm the division of the oil-producing desert state into a western area round the capital Tripoli held by forces loyal to Gaddafi and an eastern region held by those rebelling against his four-decade rule.

CIMB Economics Research had recently estimated the federal government’s fuel-related subsidies could reach RM14 billion based on the current oil price of US$90 to US$100 per barrel.

“If the oil price rises to US$130 to US$140 per barrel, the amount of subsidies could balloon to at least RM18 billion to RM20 billion,” it said in a recent report.

Under the Budget 2011, the federal government earmarked 6.3% of the total operating expenditure (opex) or RM10.3bn as subsidies for LPG, diesel and petroleum, based on an average oil price of US$85 per barrel. In 2008, subsidies for fuel and petroleum-related products amounted to RM17.6 billion or 11.4% of opex.

Meanwhile, Wall Street erased most of its weekly gains on Friday as fears of more geopolitical turmoil and higher oil prices threaten to stifle rallies in coming weeks.

The worries overshadowed strong labour market news. U.S. unemployment fell below 9% for the first time in nearly two years, but investors quickly turned to focus on intensified fighting in Libya and simmering unrest throughout the region. Brent crude prices rose above SUS$116 a barrel and the CBOE Volatility Index VIX, Wall Street's so-called fear gauge, rose 2.7% to 19.11.

Stocks to watch on Monday include SUNWAY HOLDINGS BHD, Fajarbaru Builder Group Bhd, oil and gas-related companies, UEM Group Bhd and ALLIANZ MALAYSIA BHD.

Sunway’s unit Sunway CONSTRUCTION Sdn Bhd Holdings Bhd has secured a RM257.96 million contract for the proposed construction of part of the Legoland Malaysia Theme Park in Johor. Sunway Construction had accepted the letter of award from IDR Assets Sdn Bhd to build package four of the theme park.

Fajarbaru’s unit has received the letter of acceptance from the BINA PURI HOLDINGS BHD []-TIM Sekata joint venture for part of the light rail transit (LRT) extension project valued at RM62.66 million.

Its unit Fajarbaru Builder Sdn Bhd was appointed by Syarikat Prasarana Negara Bhd as the nominated sub-contractor to the joint venture.

Oil and gas related companies will continue to trading interest, underpinned by the high oil prices and Petroliam Nasional Bhd’s RM250 billion plan in the next five years in exploration and asset replacement to maintain the exploration levels.

Other companies in the news are BANDAR RAYA DEVELOPMENTS BHD, whose unit BR Property Holdings Sdn Bhd has secured a RM450 million term loan to repay inter-company loans, payment of dividend and working capital purposes.

MUTIARA GOODYEAR DEVELOPMENT Bhd has launched its new phase of its lifestyle homes in Nadayu 92, Kajang with a gross development value (GDV) of over RM40 million.

UEM Group Bhd is looking into investing more in India’s infrastructure development projects particularly expressways, which presents tremendous growth potential. The projects would be undertaken by PLUS EXPRESSWAYS BHD and UEM BUILDERS BHD.

OSK Research has initiated coverage of Allianz Malaysia with a BUY, at a target price of RM5.68, derived from a sum of parts valuation.

Riding on potentially strong growth in the life insurance industry and a re-rating of motor insurance, Allianz as the biggest general insurance player is poised to benefit from the encouraging industry outlook.

“The company is also seeking to establish a foothold in the fast growing takaful industry to diversify its business,” the research house said.

OSK Research said apart from being the No. 1 one player in Malaysia’s general insurance industry with gross written premiums (GWP) totaling RM1.3bn in FY10, Allianz’s life insurance business is no less a consistent performer, chalking up RM1bn in GWP on the back of a robust double digit growth of 18.5% in FY10.

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Maybank IB Views

ACQUISITIONS / DISPOSAL
PLUS Expressways RM4.36:Buy
RM5.20 offer, but what is the return? Shariah-compliant

Highly enticing but .... Jelas Ulung's RM26b offer is 13% higher than the RM23b offer by UEM-EPF. It promises not to seek any tax waiver, government compensation, nor toll increases. While extremely enticing for shareholders, we fail to see the investment return for Jelas Ulung as the offer price is 11% above our RM23.4b DCF value based on existing concession terms. Without that comfort, we are concerned on financial implications or recourse later. The government must reveal the revised concession terms sought by Jelas Ulung, before the offer proceeds.

Technicals
The FBM KLCI tumbled 4.00 points to 1,495.88 yesterday. The FBM 100 and FBM EMAS closed lower by 21.45 points and 24.48 points respectively.
Trading idea for today is a SHORT TERM BUY call on DIALOG.


Other Local News
TdC: To jointly offer IPTV services with Astro. TIME dotcom Bhd's (TdC) is collaborating with Astro, via its wholly owned subsidiary TT dotcom Sdn Bhd to offer Internet Protocol Television (IPTV) and broadband services in the Klang Valley and Penang. Under the collaboration, Astro's high-definition, video on demand and B.yond TV services will be bundled with TdC's broadband and telephony services. (Source: The Edge Financial Daily)

Supermax: ADR to broaden foreign interest in its share. Supermax Corporation Bhd has obtained approval from the US Securities and Exchange Commission for its Sponsored Level-1 American Depositary Receipt (ADR) programme which facilitates the trading of Supermax's shares by American investors. The Bank of New York Mellon would be the depository bank whilst Malayan Banking Berhad (Maybank) serves as the custodian of Supermax's shares in Malaysia. (Source: The Edge Financial Daily)

UEM Land, Sunrise: Takeover becomes unconditional, deadline extended. UEM Land's conditional take-over offer for Sunrise became unconditional after the acceptance has crossed the 50% threshold yesterday. The closing date and time for acceptance of the takeover has been extended to 5p.m. on Jan 7, 2011. (Source: The Edge Financial Daily)

MAS: Revamps fleet, adds capacity to India. Malaysia Airlines (MAS) plans to revamp its fleet and scale up operations to achieve 30 to 40% passenger growth in the Indian sector next year. MAS will switch from the B777, used at present, to the A380 aircraft to India by 2012. The carrier would also revamp its frequency to its regular destinations and allocate additional 40% capacity in India. (Source: Business Times)

RHB Capital: RHB Bank to hold Bank Mestika stake. Having consulted the relevant authorities, RHB Capital will now park its Bank Mestika stake under RHB Bank, from RHB Venture Capital previously. (Source: The Star)

MTDCap: Gets RM2.6b takeover offer. MTD Capital Bhd (MTDCap) has received a takeover offer from a consortium of four local firms in a deal that values the construction company at about RM2.6b. The four companies, namely Nikvest Sdn Bhd, Alloy Consolidated Sdn Bhd, Alloy Concrete Engineering Sdn Bhd and Alloy Capital Sdn Bhd which collectively own 131.48m shares or 53% stake in the company, offered RM9.50 a share to acquire the balance 116.0m shares or 47% stake they did not already own. The joint offerors do not intend to maintain its listing status. (Source: The Star)

Bina Puri: Wins job in Brunei. Bina Puri Holdings Bhd's unit Bina Puri (B) Sdn Bhd has entered into a sub-contract worth RM158.4m in Brunei with Chuon Tzu Construction Co Sdn Bhd. Bina Puri will undertake infrastructure works for a housing project which is expected to be completed in 36 months. (Source: The Star)

Iskandar Malaysia: Records RM64.4b in investments. The total value of investments recorded by Iskandar Malaysia from the start of the development corridor project in 2006 until September 2010 was RM64.4b, which exceeded the RM47b target set for this year. A total of RM37.26b or 58% from the total investments were by domestic investors while the balance of RM27.12b from overseas. Of the overall investment recorded, RM25.7b was in the service sector, RM12.8b in the tourism sector, RM19.6b in properties and RM6.28b in the government sector. (Source: Bernama)

Infrastructure: Plans for bridge between Malacca, Dumai. Malacca state government is seeking approval for the longest sea-crossing bridge connecting Malacca with Dumai in Sumatra from the federal government, while the Governor of Riau, Rusli Zainal, will attempt to secure Jakarta's approval. The proposed 127.9km highway costs USD12.8b (RM40.1b) and will be privately funded. Construction is expected to be completed in 10 years. The bridge will be built by Straits of Malacca Partners Sdn Bhd, with financial support guaranteed by China Exim Bank and other financial institutions. (Source: New Straits Times)

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Maybank IB Views

SECTOR UPDATE
Plantations: Neutral
MPOB data: Tightening supply

Bullish for prices. Stock levels fell below trend as demand stayed strong while production began its seasonal decline. In our view, Malaysian production is likely to decline in 2010. While spot prices have surpassed our CPO ASP forecast of RM3,000/t for 2011, we believe prices could trend down as weather concerns dissipate post the passing of the year-end monsoon season.


RESULTS REVIEW
Sapura Crest Petroleum RM2.85: Buy
Eyes strategic assets; target price lifted Shariah-compliant

Target price raised to RM3.30. 3Q results yielded no surprises but we are turning even more positive on SapCrest. It has a strengthened balance sheet to expand its core businesses (i.e. IPF, marine services, drilling ops) through M&As. Maintain Buy with a higher RM3.30 target price (+8%) as we lift target PER multiple from 16x to 17x FY13 on new asset injection prospects.


Technicals
The FBM KLCI rose 6.30-points and closed at 1,507.28 last week. The obvious support areas for the FBM KLCI are located in the 1,474 to 1,507-zone. The key resistance areas of 1,510 and 1,531 may cap any rebound activity.

Trading idea for today is an Accumulate call on KFIMA.


Other Local News
GreenPacket: P1 plans to improve and upgrade its 4G WiMAX coverage to 45% of Malaysian households by year-end, with the goal of hitting 65% by 2012. P1 also planning to roll out an array of rich media services, including Voice-over-Internet Protocol and mobile video. (Source: The Star)

KrisAssets: Could buy The Gardens from IGB. KrisAssets Holdings Bhd's plan to issue RM300m in redeemable convertible bonds may be a precursor to acquire The Gardens from parent IGB Corp Bhd (IGB). The acquisition could be via cash and shares. (Source: The Edge Weekly)

Landmarks: May start Bintan development in 1Q11. Landmarks Bhd, a 30.3% associate of Genting Bhd, is expected to start its Bintan development called Treasure Bay Bintan (TBB) by the first quarter of 2011. The development has been planned since 2007. This will be Landmark's second resort development after the Andaman Resort in Langkawi. (Source: The Edge Financial Daily)

Port: Ancom's Siew submits proposal for Penang Port. Oriental Pearl Harbour (led by Datuk Siew Ka Wei of the Ancom group), in partnership with China Shipping (Group) Co Ltd (the parent of China Cosco and Cosco Corp), has submitted a competing bid for Penang port. This rivals an earlier proposition by businessman Tan Sri Syed Mokhtar Al-Bukhary. Oriental's proposition would involve an outright purchase for RM500m (with the government holding a golden share) and the absorption of future capex totaling RM2b to RM2.5b. (Source: The Edge Weekly)

UEM-EPF: Seeks tax waiver on PLUS takeover. The special purpose vehicle (SPV) controlled by UEM Group and the Employees Provident Fund (EPF) which has made an offer of RM4.60 per share for PLUS Expressways Bhd is seeking a tax waiver for PLUS's toll operations until the end of its tenure in 2030. UEM-EPF is also seeking an exemption or relief from all stamp duty, real property gains tax and other taxes and levy that may arise during the acquisition. However, the acquisition of PLUS will still proceed if UEM-EPF is unable to secure any exemptions. (Source: The Edge Weekly)

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Headline is: TRC Synergy & UEM Group in final race for LRT extension job

Headline is: TRC Synergy & UEM Group in final race for LRT extension job.

TRC & UEM Builder Intria Bina S/B are believed to be at the last mile of the race to win the contract for the extension of the LRT near Kelana Jaya. It looks as if TRC is the front runner for the job. The cost of the civil works is estimated at RM900m to a bit more than a RM1b.

On the technical, we like it for its very firm Wave 3 uptrend with support at RM1.19 to RM1.45. Resistance is at RM1.49 & 1.60. Stop-loss is at RM1.17 and the upside target areas are RM1.68, RM1.86 and RM2.17 in the longer-term.

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