Stock Name: MISC
Company Name: MISC BHD
Research House: AMMB
KUALA LUMPUR: MISC BHD [] advanced in morning trade on Friday, April 23 after AmResearch upgraded the stock to a buy at RM8.80 with a higher fair value of RM11.80 (from RM8.85 previously) and said it had turned bullish on the company's prospects.
The counter was the top gainer in early trade Friday, advancing 28 sen to RM9.08 at 9.20am with 772,300 shares done.
The research house said the market would start to price in a recovery in tanker rates moving into 2HCY10, underpinned by deceleration in global fleet growth and a rebound in demand.
Meanwhile, container losses are expected to narrow, it said.
"MMHE is on the verge of a strong earnings upcycle as margins recover from depressed levels in FY10F. Having raised some RM5.2 billion from a recent rights issue, we sense that MISC is nearing a much-awaited acquisitive expansion.
"We have raised our projections by 1%-6% over FY11F-12F on back of higher tanker rate assumptions, lower losses for the container division and margin recovery at MMHE," it said.
AmResearch said MISC was hugely underowned by the market having underperformed the KLCI by 32% over the past 12 months.
"Convergence of the abovementioned catalysts should trigger a significant re-rating of MISC's share price, which in turn will trigger massive portfolio rebalancing by institutional funds given MISC's position as the 9th largest stock on the index with a significant 3.8% weighting," it said.
Company Name: MISC BHD
Research House: AMMB
KUALA LUMPUR: MISC BHD [] advanced in morning trade on Friday, April 23 after AmResearch upgraded the stock to a buy at RM8.80 with a higher fair value of RM11.80 (from RM8.85 previously) and said it had turned bullish on the company's prospects.
The counter was the top gainer in early trade Friday, advancing 28 sen to RM9.08 at 9.20am with 772,300 shares done.
The research house said the market would start to price in a recovery in tanker rates moving into 2HCY10, underpinned by deceleration in global fleet growth and a rebound in demand.
Meanwhile, container losses are expected to narrow, it said.
"MMHE is on the verge of a strong earnings upcycle as margins recover from depressed levels in FY10F. Having raised some RM5.2 billion from a recent rights issue, we sense that MISC is nearing a much-awaited acquisitive expansion.
"We have raised our projections by 1%-6% over FY11F-12F on back of higher tanker rate assumptions, lower losses for the container division and margin recovery at MMHE," it said.
AmResearch said MISC was hugely underowned by the market having underperformed the KLCI by 32% over the past 12 months.
"Convergence of the abovementioned catalysts should trigger a significant re-rating of MISC's share price, which in turn will trigger massive portfolio rebalancing by institutional funds given MISC's position as the 9th largest stock on the index with a significant 3.8% weighting," it said.
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