MASTEEL - OSK remains neutral on Masteel

Stock Name: MASTEEL
Company Name: MALAYSIA STEEL WORKS (KL)BHD
Research House: OSK

Malaysia Steel Works (KL) Bhd (Masteel)
(June 3, 92 sen)
Reiterate neutral at 91.5 sen with target price of RM1: Masteel announced on June 2 that it has disposed of five million shares of RM1 each in wholly owned subsidiary, Bio Molecular Industries SB (BioM), for a cash consideration of RM1,000 to IBA Pharma SA (IBA).

The original issued and paid-up capital of BioM is 10 million shares of RM1 each.

BioM is principally engaged in the business of manufacturing and research and development of radio isotopes and radio-pharmaceuticals products for positron emission tomography (PET). The company is supposed to produce and market fluorine-labelled fluorodeoxyglucose (FDG), a diagnostic radio-pharmaceutical used in PET scans to detect and monitor the treatment of cancer.

To date, Masteel has invested about RM13.5 million in this company, which mainly covered the cost of the plant and a two-acre site in Sepang.

The new investor-cum-JV partner, IBA, is a wholly owned subsidiary of Ion Beam Application S A (IBA SA), which is listed on the pan-European stock exchange Euronet, and is a component of the BelMid Index.

IBA has undertaken to subscribe for another five million ordinary shares of RM1 each in the issued and paid-up capital in BioM upon signing the share purchase agreement with Masteel. It also agreed to absolve Masteel from the guarantee of about RM10 million for the purchase of cyclotron equipment from IBA SA for BioM.

Masteel's shareholding in BioM will be reduced to 45.34% on the completion of the above exercise plus capitalisation of additional capital injection in BioM, which we suspect will amount to RM3.5 million.

Masteel expects to incur a one-time disposal loss of about RM5.1 million from this transaction.

As we have expressed reservations on this investment since it was first announced in 2007, we are not surprised with the latest move to dispose of the stake at a loss. We have also not accounted for any contribution from this venture and think that the disposal loss can be categorised as an exceptional item, which would then not impact our core earnings estimates.

In view of this, we maintain our neutral recommendation on Masteel with a fair value of RM1. This is derived from five times EPS (earnings per share) and 0.59 times net tangible asset/share, or +1 standard deviation of the stock's historical trading band on FY10 numbers. ' OSK Research, June 3


This article appeared in The Edge Financial Daily, June 4, 2010.

BJTOTO - BToto raised to buy on emerging value

Stock Name: BJTOTO
Company Name: BERJAYA SPORTS TOTO BHD
Research House: ECMLIBRA

Berjaya Sports Toto Bhd
(June 3, RM4.37)
Upgrade to buy at RM4.24 with target price of RM4.91: We considered trimming our FY11 estimates to reflect cannibalisation from Berjaya Sports Toto's (BToto) punters shifting some of their bets to illegal sports betting during the 2010 World Cup.

Historically, this amounted to 4%-5% reduction in revenue per draw during the World Cup period. However, we noticed that the number forecasting operator (NFO) industry grew by 6% in 2006 despite the World Cup then because it was held in a different time zone, foreign workers were not deported and the regulatory environment then was favourable.

We deem the operating conditions surrounding the 2010 World Cup to be similar to that of 2006. Therefore, we maintain our earning estimates.

Although BToto is not expected to receive much from the touted 1% on retail sales commission payable by sister company Ascot Sports, we believe legalised sports betting will actually boost revenues.

Taking a leaf out of history, increased outlet visits driven by large jackpots led to higher revenues for both lotto and non-lotto games (4D, 5D and 6D).

In the same vein, we expect increased outlet visits driven by sports betting to again lead to overall revenue growth as punters who are not regular NFO punters bet on not only sports but mainstay NFO games.

More importantly, that little cannibalisation effect World Cups have had on BToto's revenue will be arrested once and for all.

We assumed a 15% reduction in revenue per draw for FY10 due to competition from Magnum's 4D Jackpot. Thereafter, we assumed 2% growth in revenue per draw (1998-2008 NFO industry compound annual growth rate: 2.6%).

Our unchanged target price of RM4.91 (terminal growth rate: 1.5%, weighted average cost of capital: 7.9%) currently offers 16% upside potential and 5.4% net dividend yields.

Thus, we revert back to our earlier buy call. We would also like to point out that BToto's share price is resilient during recessionary periods and periods of low consumer confidence due to its stable earnings (assuming stable prize payout ratios) and attractive dividend yields.

With the upcoming subsidy rationalisation programme, BToto will provide a 'safe harbour' for investors. ' ECM Libra Investment Research, June 3


This article appeared in The Edge Financial Daily, June 4, 2010.

HLBANK - Strong showing from banks in April

Stock Name: HLBANK
Company Name: HONG LEONG BANK BHD
Research House: AMMB

Banking sector
Downgrade to neutral (from overweight): Industry loans growth stable at 10% year-on-year (y-o-y) in April 2010, broadly unchanged from March 2010's +9.8% y-o-y.
Again, most of the growth was derived from the household segment, which reported growth of 12.2% y-o-y in April (March: 11.8% y-o-y). Business segment's loans growth slowed down somewhat to 4% in April from March 2010's 4.3% y-o-y.

Loans applications turned in a healthy growth rate of 26.8% y-o-y in April, comparable to the 23% growth recorded in March.

As for loans approved, the growth rate picked up again to a robust 26.7% y-o-y increase in April, which is certainly much higher than the 12.9% y-o-y and 11.8% y-o-y growth rates seen in March and February 2010, respectively.

Both the loan application and approval growth rates are surprisingly strong, and we had expected these to start to normalise given that the low base effect of 1Q09 will now be replaced by a more regularised base from March 2009.

The business segments are the main drivers in April 2010, with business applications growth rate strengthening to 40.2% y-o-y (March: +16.8% y-o-y), and business loans approved growth accelerating to +32.4% y-o-y (March: +4.8% y-o-y).

We understand the industry non-performing loans (NPL) figures would be somewhat of a hybrid, given that some banks are now reporting impaired loans based on FRS139, while others have yet to cross over to FRS139.

Nevertheless, as a gauge, April 2010's gross non-performing loans/impaired loans nudged up by RM357 million month-on-month (m-o-m), from a previous reduction of RM1.7 billion m-o-m in March 2010.

Gross NPL/impaired loan ratio is still somewhat stable at 3.5% in April (March: 3.5%), given higher loan base. Net NPL ratio is unchanged as well at 1.8% in April (March: 1.8%). Loan loss cover strengthened though to 97.8% in April, if compared to 95.9% in March.

April 2010's banking industry data indicates that loan growth is likely to remain healthy. However, we expect these to be largely discounted in our forecasts, as we now project 9.8% (previous 8%) calendarised loan growth for the seven banks under our coverage.

Looking ahead, we expect asset quality trends to be skewed by changes to accounting basis, when the other banks (AFG, HLBB, Maybank) adopt FRS139. Thus, a more relevant comparison will likely be possible only from the September 2010 banking statistics.

We are downgrading our sector rating to neutral from overweight. This is mainly due to our earlier downgrade on CIMB to hold from buy previously. Our sector top pick is still RHB Capital and HLBB. RHBCap in our view is still a laggard, trading at P/BV (price-to-book value) of only 1.4 times. We maintain our fair value on RHBCap at RM7.20 per share.

We remain positive on HLBB as we expect higher value extraction should its merger with EONCap goes through. We maintain buy on HLBB with unchanged fair value of RM10.90 per share. ' AmResearch, June 3


This article appeared in The Edge Financial Daily, June 4, 2010.

RHBCAP - Strong showing from banks in April

Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Research House: AMMB

Banking sector
Downgrade to neutral (from overweight): Industry loans growth stable at 10% year-on-year (y-o-y) in April 2010, broadly unchanged from March 2010's +9.8% y-o-y.
Again, most of the growth was derived from the household segment, which reported growth of 12.2% y-o-y in April (March: 11.8% y-o-y). Business segment's loans growth slowed down somewhat to 4% in April from March 2010's 4.3% y-o-y.

Loans applications turned in a healthy growth rate of 26.8% y-o-y in April, comparable to the 23% growth recorded in March.

As for loans approved, the growth rate picked up again to a robust 26.7% y-o-y increase in April, which is certainly much higher than the 12.9% y-o-y and 11.8% y-o-y growth rates seen in March and February 2010, respectively.

Both the loan application and approval growth rates are surprisingly strong, and we had expected these to start to normalise given that the low base effect of 1Q09 will now be replaced by a more regularised base from March 2009.

The business segments are the main drivers in April 2010, with business applications growth rate strengthening to 40.2% y-o-y (March: +16.8% y-o-y), and business loans approved growth accelerating to +32.4% y-o-y (March: +4.8% y-o-y).

We understand the industry non-performing loans (NPL) figures would be somewhat of a hybrid, given that some banks are now reporting impaired loans based on FRS139, while others have yet to cross over to FRS139.

Nevertheless, as a gauge, April 2010's gross non-performing loans/impaired loans nudged up by RM357 million month-on-month (m-o-m), from a previous reduction of RM1.7 billion m-o-m in March 2010.

Gross NPL/impaired loan ratio is still somewhat stable at 3.5% in April (March: 3.5%), given higher loan base. Net NPL ratio is unchanged as well at 1.8% in April (March: 1.8%). Loan loss cover strengthened though to 97.8% in April, if compared to 95.9% in March.

April 2010's banking industry data indicates that loan growth is likely to remain healthy. However, we expect these to be largely discounted in our forecasts, as we now project 9.8% (previous 8%) calendarised loan growth for the seven banks under our coverage.

Looking ahead, we expect asset quality trends to be skewed by changes to accounting basis, when the other banks (AFG, HLBB, Maybank) adopt FRS139. Thus, a more relevant comparison will likely be possible only from the September 2010 banking statistics.

We are downgrading our sector rating to neutral from overweight. This is mainly due to our earlier downgrade on CIMB to hold from buy previously. Our sector top pick is still RHB Capital and HLBB. RHBCap in our view is still a laggard, trading at P/BV (price-to-book value) of only 1.4 times. We maintain our fair value on RHBCap at RM7.20 per share.

We remain positive on HLBB as we expect higher value extraction should its merger with EONCap goes through. We maintain buy on HLBB with unchanged fair value of RM10.90 per share. ' AmResearch, June 3


This article appeared in The Edge Financial Daily, June 4, 2010.

AXIATA - OSK Research maintains buy call on Axiata

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Research House: OSK

KUALA LUMPUR: OSK Research has maintained its buy call on Axiata Group Bhd at RM3.77 with target price RM4.80 and said the company remains its top Malaysian and regional telecoms exposure on account of its positive longer-term prospects and strong operational execution.

"Axiata is currently on its Phase 2 transformation programme to become a regional champion by 2015.

"Its key earnings catalysts are: (i) the continuing strong growth at XL; and (ii) sustained performance of Celcom; and (iii) good group-wide cost management initiatives," it said in a note Friday, June 4.

EVERGRN - Evergreen's outlook remains favourable

Stock Name: EVERGRN
Company Name: EVERGREEN FIBREBOARD BHD
Research House: RHB

Evergreen Fibreboard Bhd
(June 2, RM1.43)
Maintain outperform at RM1.43 with a lower fair value of RM2.30 (from RM2.35): Evergreen expects 2Q10 results to be stronger by circa 5% quarter-on-quarter, due mainly to higher sales volume coupled with higher average selling prices. Its current capacity utilisation rate is above the 80% level while average selling prices have since strengthened by 3% in 2Q10 versus 1Q10. Total cost of production has dropped by 2.5% in 2Q10.

Evergreen will be commissioning its currently dormant Indonesian plant in 2H10. To be conservative, we have only assumed contributions from Indonesian operations to start from FY11 onwards. If the plant is commissioned on time in 2H10, this would potentially raise our FY10 forecast by 5%.

Evergreen expects growth to mainly come from an improvement of market share in the region as well as reduction in cost of production. Moving forward, Evergreen plans to grow both its Thailand and Indonesia market shares to 5% (from <2%) and 10% (from 6%), respectively in the near term.

We also believe that Evergreen may try to further reduce its cost of production through the securing of rubberwood log supply by acquiring rubber plantation land and/or the acquisition or commissioning of a third glue plant. Any acquisitions of existing MDF players would only take place earliest in 2012, if opportunities present themselves.

Given its stronger financial position currently, Evergreen highlighted that it may pay out more interim dividends in FY10 and FY11. Evergreen also targets to be in a net cash position by end-2011 (from 0.4 times net gearing currently). Following the management's commitment to paying out higher dividends in FY10-FY11, we have increased our net dividend payout assumption to 40%-45% in FY10-FY11 (from 25%), which would bring dividend, payouts back to '06 levels of 40% (before the acquisition of Takeuchi MDF and Hume Fibreboard). This translates to a very respectable 6%-7% net dividend yield for FY10-FY11 (from 3%-4% previously).

The risks to our view include: (1) sharp drop in MDF price; (2) sharp increase in log costs; (3) further escalation of crude oil related glue and logistics costs; and (4) strengthening of the ringgit which could reduce the company's export competitiveness.

We reduced our earnings forecasts by 1.4%-3.2% for FY10-FY12 per annum after updating our US dollar to ringgit assumptions; our FY09 numbers; and increasing our dividend payout assumptions.

Post earnings revision, we value Evergreen at RM2.30 (from RM2.35) based on unchanged target PER (price-earnings ratio) of 11 times FY12/10 earnings (which is at a three times PE discount to the timber sector due to its smaller market capitalisation). Maintain our outperform recommendation on the stock. ' RHB Research Institute, June 2


This article appeared in The Edge Financial Daily, June 3, 2010.

SAPCRES - SapuraCrest taps Mideast IPF market

Stock Name: SAPCRES
Company Name: SAPURACREST PETROLEUM BHD
Research House: RHB

SapuraCrest Petroleum Bhd
(June 2, RM1.95)
Reiterate outperform at RM1.96 with fair value of RM2.66: SapuraCrest announced that it had entered into joint venture (JV) with Al Rayan Investment (ARI) with an initial investment of RM308,700. We understand that SapuraCrest will have a 49% stake in this JV while ARI will own the remaining 51%.

Note that ARI was incorporated in Qatar in 2007 as a limited liability company and is a wholly owned subsidiary of Masraf Al-Rayan (Qatar's fourth-biggest lender by market cap). The businesses of ARI include real estate investment, private equity and investments and financial advisory services.

We are positive on the latest development as the JV would enable SapuraCrest to tap into the growing IPF (installation of pipelines and facilities) demand stemming from the resilient E&P (exploration and production) spending in the Middle East. Recall that SapuraCrest had secured few sizeable contracts from India (RM185 million Mumbai High South and RM255 million North Field projects) via the 40:60 JV with Larsen & Toubro. However, unlike the Acergy JV and L&T JV, this JV will not own an IPF vessel.

Risks to our view are: (1) rising costs of materials, labour and assets; 2) potential margin squeeze for the IPF division due to price competition for new contracts; and (3) potentially, more open competition from larger global players.

We maintain our forecasts, as it is premature to include earnings contribution from the JV.

We reiterate that medium-term earnings visibility remains bright on the back of: (1) RM9.1 billion effective order book and stronger order book replenishment from overseas (India and Australia) for its IPF division; (2) better cost control given ownership of its own IPF vessels as well as cost pass-through contract; and (3) stronger growth in rates for its drilling division.

Potentially, as we see more contracts secured, there may be upside to our fair value of RM2.66 per share, which is based on 16 times FY11 EPS (earnings per share). Hence, given still potential upside of 36% to our fair value, we reiterate our outperform call on the stock. ' RHB Research Institute, June 2


This article appeared in The Edge Financial Daily, June 3, 2010.

AIRASIA - Tax allowance extension is good news for AirAsia

Stock Name: AIRASIA
Company Name: AIRASIA BHD
Research House: OSK

AsiaAsia Bhd
(June 2, RM1.20)
Reiterate trading buy at RM1.25 with target price of RM1.48: AirAsia announced on Bursa Malaysia that the company has received the approval of the finance ministry vide its letter dated May 27, 2010 for an extension of investment allowance incentive for a period of another five years from July 1, 2009 until June 30, 2014.

This is indeed a piece of good news for AirAsia as 60% of its qualifying capital expenditure (capex)'' incurred from July 1, 2009 to June 30, 2014 will enjoy permanent tax savings. While the investment allowance can only be set off against 70% of statutory income for each year of assessment, we think the company may begin to record deferred tax assets (positive tax) in the coming quarter by topping up this extended allowance with regular capital allowance. AirAsia has begun to record some reversal of capital tax allowance since 3QFY09 after the company decided to slow down on the delivery of new aircraft.

As the investment allowance is granted only for aircraft based in Malaysia, we suspect this may lead to the company parking more aircraft under its books. However, we are uncertain whether the aircraft that are subsequently leased to its associates can enjoy similar incentives.

Apart from that, should any aircraft be sold or leased within five years, there would be a claw-back of the investment allowance utilised on the said aircraft. This may discourage AirAsia from selling and leasing back the new aircraft in order to fully capitalise on the tax incentive.

As we have been valuing AirAsia based on profit before tax (PBT) to exclude the implications of deferred tax recognition and our original estimates already incorporated a positive tax of RM20 million for FY10, we are keeping our projection. Together with this piece of good news, we also excited with the potential announcement of some corporate exercises pertaining to its plans for AirAsia X and Indonesia AirAsia soon. The board is also in talks with new investors to buy out the majority stake in its Indonesia associate, which was put up for sale by the original investors.

With the corporate exercises in the pipeline and as the share price offers some upside after the recent weakness, we maintain our trading buy recommendation with an unchanged fair value of RM1.48, derived from nine times FY10 EPS (earnings per share core- PBT level). ' OSK Research, June 2


This article appeared in The Edge Financial Daily, June 3, 2010.

TENAGA - Maybank IB downgrades Tenaga to sell, cuts target price to RM7.35

Stock Name: TENAGA
Company Name: TENAGA NASIONAL BHD
Research House: MAYBANK

KUALA LUMPUR: Maybank Investment Bank Bhd Research has downgraded TENAGA NASIONAL BHD [] to a sell at RM8.29 and cut its target price for the stock to RM7.35 (from RM11.80).

It said in a note Thursday, June 3 that after three months since the Energy minister mentioned a need to educate the public to justify higher electricity prices, there was no sign of higher base tariffs, suggesting it was low on the government's priorities.

A recent Pemandu proposal is for a gas and corresponding electricity hike without a change in the base tariff to raise ROA, it said.

Maybank IB Research said incremental electricity demand will have to be coal-generated, which is more costly (than gas) and results in a more volatile cost structure.

Existing coal plants could operate at 90% capacity by 2015 and industry reserve margins below 20% by then, raising the possibility of power shortages, it said.

The research house said feed-in tariffs, the price at which Tenaga buys excess renewable energy from third parties, may be imposed on Tenaga without sorting out a base tariff hike.

"We are removing our assumed 4% tariff hike from our forecasts, reducing our discounted cash flow-based target price to RM7.35, with earnings falling by 18% and 11% in FY11-12," it said.

AIRASIA - AirAsia a 'buy' as tax savings a boost

Stock Name: AIRASIA
Company Name: AIRASIA BHD
Research House: OSK

The extension of the tax allowance for budget carrier AirAsia Bhd is indeed good news as 60 per cent of its qualifying capital expenditure incurred from July 1 2009 to June 2014 will enjoy permanent tax savings.

OSK Research, in a note today, said as the investment allowance was only granted for aircraft based in Malaysia, this may lead to the company parking more aircraft under its books.

The approval is subject to the condition that the capex will exclude any aircraft not based in Malaysia and should any aircraft be sold or leased within five years.

In such a case, there will be a clawback of the investment allowance used on the aircraft and this may discourage the airline from selling and leasing back new aircraft to fully capitalise on the tax incentive.
"Together with this piece of good news, we are also excited with the potential announcement of some corporate exercise pertaining to its plan for AirAsia X and Indonesia AirAsia," it said.

Thus, OSK said it was maintaining its "BUY" recommendation, with an unchanged fair value of RM1.48 on AirAsia, supported with the corporate exercise in the pipeline and as the share price offered some upside after the recent weakness. - Bernama

POS - Pos Malaysia brought down by impairment charges

Stock Name: POS
Company Name: POS MALAYSIA BHD
Research House: INTER PACIFIC

Pos Malaysia Bhd
(June 1, RM2.62)
Reiterate outperform at RM2.67 with target price of RM3.28: The target price is based on FY10 EPS (earnings per share) of 23.4 sen and PER (price-earnings ratio) of 14 times. We expect Pos Malaysia's both top and botton line to benefit from the tariff hike which will come into effect from July 1.

Pos Malaysia's 1QFY10 revenue of RM231.08 million was lower than our forecast accounting for 21.5% of our FY10 projection. We expect its revenue to pick up in 2HFY10 benefiting from the tariff hike which is expected to raise its revenue by about 40%-50%.

1QFY10 revenue rose by 2.9% quarter-on-quarter (q-o-q) benefiting from all its business segments with the exception of its courier and logistic posted a negative growth of 0.8% q-o-q.

Retail business revenue was up 18.6% q-o-q to RM38.7 million which could be attributed to the refurbishment of post offices as well as the management's increasing concentration to develop this segment.

Pos Malaysia's profit margin fell due to higher expenses ' 1QFY10 operating profit fell by 14% year-on-year (y-o-y) to RM23.1 million in view of higher expenses, which were up 1.9% y-o-y to RM208 million following an increase in maintenance and supplies costs, transportation cost as well as promotional expenses.

Revenue, which gained by 0.1% y-o-y, failed to yield any major impact. Thus, the postal services provider's operating profit margin fell by 1.6 percentage points y-o-y to 10%.

Pos Malaysia's 1QFY10 profit before tax (PBT) fell by 69.8% y-o-y and 67.1% q-o-q to RM9.4 million due to impairment losses provided for non-current investments of RM19.4 million. Excluding all impairment charges, its 1QFY10 PBT would have contracted by 10.6% y-o-y, while on a quarterly basis, it rose 8.1%.

With Transmile's turnaround plan still unclear, this could put a lid on Pos Malaysia's interest into Transmile for its future growth plan. ' Inter-Pacific Research, June 1 ''


This article appeared in The Edge Financial Daily, June 2, 2010.

RHBCAP - RHBCap on track for another record year

Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Research House: MAYBANK

RHB Capital Bhd (RHBCap)
(June 1, RM5.77)
Maintain buy at RM5.75 with target price raised to RM6.60 (from RM6.40): 1QFY10 net profit of RM350 million made up 26% of our and consensus' full-year forecast, with the slight upside coming from lower provision for impaired loan loss after the switch to FRS 139 from GP3.

Loan growth was also stronger than expected. We raise our 2010 net profit forecast by 5%, forecasting a strong 18% growth. Our discount dividend model-based target price is slightly enhanced to RM6.60. The stock remains a buy.

1QFY10 net profit up 53% year-on-year (y-o-y), 4% quarter-on-quarter (q-o-q). The strong y-o-y jump was broad based, coming from loan growth (+15.8%), net interest margin (NIM) expansion (+12 basis points), higher fee and foreign exchange income, and lower provision for impaired loan loss (-52%).

The relatively smaller q-o-q net profit growth was mainly due to lower operational expenditure (-13%) with some one-off marketing and administration costs in 4Q09 not being repeated, and lower provision for impaired loan loss (-25%).

NIM meanwhile rose 1bps q-o-q to 2.82%. Credit charge retraced 65bps y-o-y and 18bps q-o-q to 0.46%.

Loans grew a strong 17.4% annualised, driven by loans to government and statutory bodies, and individuals, while credit to businesses contracted marginally.

The management believes the strong momentum is sustainable. We raise our loan growth forecast for 2010 to 15% from 12%. We retain our credit charge assumption at 0.7% as guided.

Our net profit forecast is slightly enhanced by 5% for 2010, and 1%-2% per annum for 2011-2012. Our new forecast implies a return on equity of 15.2% for 2010, a tinge higher than management's 14.5%-15% target.

Bank Negara's approval has been obtained while discussions are still ongoing with Bank Indonesia. The acquisition, for an 80% stake, is now targeted for completion by end-3Q10 versus mid-2010 previously.

We have earlier estimated an EPS (earnings per share) dilution of 10% for an estimated 1-for-6 rights issue to raise up to RM1.3 billion to fund the acquisition.

At single-digit forward PERs (price-earnings ratio), RHB Cap remains the cheapest banking stock under our coverage. Our raised RM6.60 target price implies 10 times 2010 PER (before rights dilution). ' Maybank IB Research, June 1


This article appeared in The Edge Financial Daily, June 2, 2010.

BSTEAD - Boustead's slow start to 2010

Stock Name: BSTEAD
Company Name: BOUSTEAD HOLDINGS BHD
Research House: ECMLIBRA

Boustead Holdings Bhd
(June 1, RM3.52)
Maintain hold at RM3.54 with target price raised to RM3.56 (from RM3.30): Annualised, Boustead's net profits for 1QFY10 came in some 20% below our estimates and 10% below consensus estimates.

The key area where the shortfall came compared to our expectations was in the heavy industries segment. Otherwise, other segments performed within expectations. Year-on-year (y-o-y), earnings of the group as a whole were better predominantly due to a higher crude palm oil (CPO) average selling price (ASP) but on a quarter-on-quarter (q-o-q) basis, its bottom line was softer due to lower contributions from Affin Holdings.

For 1QFY10, the group achieved a CPO ASP of RM2,499 per tonne which is below the MPOB average price of RM2,569 and that helped the segment turn in a PBT (profit before tax) that was 163% higher y-o-y. Besides this, fresh fruit bunches (FFB) yields were also better y-o-y and FFB production was up 1.5% y-o-y and a good 9.6% q-o-q.

The group said yields in Peninsular Malaysia have been better this year after a period of tree stress over FY09. To note, matured hectarage in the peninsula makes up 35% of total group estates.

Indonesia continues to bring the group's average down however and until the estates are sold, the full potential of Boustead's plantation segment will not be realised.

Earnings of BHIC were off to a slow start this year with current total yard utilisation at only 60% and the group completing several commercial vessel jobs over 4Q09.

Besides that, Boustead Naval Shipyard has only one more vessel to be delivered (currently the vessel is being tested) and now awaits a new tranche of vessels to be built from the Royal Malaysian Navy.

Towards the 2H, we expect some pick-up in earnings with the commencement of the RM700 million ship life extension job.

Another job likely to be commenced this year is the Scorpene submarine job which has as yet not been finalised. In any case, we are taking a more conservative stance and trimming our earnings expectations from BHIC.

Adjusting down our assumptions on the heavy industries segment, we lower our FY10 EPS (earnings per share) by some 8.8%. We are switching our valuation on Boustead from sum-of-parts to historical PEs (price-to-earnings).

Since 2009, Boustead has traded at an average PE of nine times and we are pegging this multiple to FY10 EPS deriving a target price of RM3.56 (previously RM3.30). To note, the group announced a single-tier five sen first interim dividend for the quarter. ' ECM Libra Investment Research, June 1


This article appeared in The Edge Financial Daily, June 2, 2010.

MAXIS - OSK remains neutral on Maxis

Stock Name: MAXIS
Company Name: MAXIS BERHAD
Research House: OSK

Maxis Bhd
(June 1, RM5.20)
Maintain neutral at RM5.22 with target price of RM5.80: Maxis' 1QFY10 core earnings of RM552 million (-1.1% year-on-year/-5% quarter-on-quarter) made up 21% of our and consensus full-year forecast.

Revenue rose 1.1% y-o-y but eased 3% q-o-q due to (i) seasonality (shorter festivity-induced quarter/business closure/lower roaming revenue); and (ii) the slide in voice and wireless broadband (WBB) ARPUs (average revenue per user).

This was despite the decent 3% q-o-q (+11.4% y-o-y) subscriber growth as prepaid revenue per minute (RPM) came under renewed pressure coupled with the promotional offer of two-months' subscription waiver on its WBB plans introduced in 4Q09.

WBB additions slowed to 49,000 in 1Q10 from a strong 75,000 in 4Q09 as it ceded the share of additions to a much stronger Celcom, which garnered 124,000 subscribers during the quarter. The board has declared a first interim dividend of eight sen per share (payable on June 30), implying a net payout of 109%.

Tight cost controls have enabled Maxis to maintain its superior (Ebitda) earnings before interest, tax, depreciation and amortisation margin of 50.3% in 1Q10, steady q-o-q.

Data revenue contribution inched higher to 34.8% from 34.4% in 3Q09 although its non-voice revenue was flat q-o-q.

The management expects more pressure on broadband price-points (WBB ARPU fell to RM69 in 1Q10 from RM85 in 4Q09) as the mobile and alternative broadband providers slug it out to court subscribers in meeting the government's target of 50% broadband penetration by end-2010.

We note that Maxis' advanced data services (ADS) revenue has grown remarkably over the past five quarters, with 50% of it subs base now being active mobile Internet users.

Maxis is finalising the commercial terms of the HSBB (high-speed broadband) wholesale arrangement with TM for last mile access and backhaul investments. It expects to be able to roll out fixed broadband services to 65,000 homes and businesses by end-3Q10, pitting its services against TM's UniFi.

We gather from the management that an agreement had also been inked with Tenaga Nasional Bhd for Maxis to deliver fixed broadband to homes via the stringing of cable on power poles. This would be a more cost effective way to deliver high speed broadband to the masses compared to laying out ground cables. ' OSK Research, June 1


This article appeared in The Edge Financial Daily, June 2, 2010.

AIRASIA - AirAsia upgraded to 'outperform' at RHB

Stock Name: AIRASIA
Company Name: AIRASIA BHD
Research House: RHB

AirAsia Bhd was raised to "outperform" from "market perform" at RHB Research Institute Sdn Bhd after first-quarter earnings exceeded its estimates.

The fair value for the stock was increased to RM2.20 from RM1.49, RHB said in a report today. -- Bloomberg

WASEONG - OSK Research lowers target price for Wah Seong to RM2.85

Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD
Research House: OSK

KUALA LUMPUR: OSK Research has maintained its buy call on Wah Seong Corp at RM2.21 but lowered its target price to RM2.85 (from RM3.35).

It said Wah Seong's 1QFY10 results were below expectations, mainly due to the lower revenue generated in the engineering, renewable energy and E&P services divisions, although this was offset by higher revenue from the pipe coating, pipe manufacturing and trading divisions.

"Hence, we are downgrading our FY10-11 earnings by 19%-26%.

"We believe that the stock's potential upside lies with the management's review of a new three- to five-year strategy going forward since the JV with Socotherm is no longer in its plans," it said.

AXIATA - Strong start for Axiata

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Research House: ECMLIBRA

Axiata Group Bhd
(May 31, RM3.77)
Maintain buy at RM3.69 with revised target price of RM4.50 (from RM4.15): Axiata's 3MFY10 revenue was in line while core net profit was above house and consensus estimates. Reported net profit was much higher as Axiata recorded an exceptional gain from the partial disposal of XL stake. Revenue and net profit growth was driven by strong year-on-year (y-o-y) performance by all major operating units, including Dialog.

Celcom and XL experienced strong double-digit growth both in terms of revenue and profitability on the back of steady subs growth and ever improving earnings before interest, tax, depreciation and amortisation (Ebitda) margins. Both companies' Ebitda margins are near record highs at 45.4% and 51% respectively. But management is guiding for Ebitda margin to stabilise at mid-40s level due to competition.

Dialog surprisingly posted a net profit of Sri Lankan rupee (SLR) 705 million (RM20.19 million) compared to a loss of SLR1.87 billion in 3MFY09. The turnaround was mainly due to a 20-percentage point rise in Ebitda margin y-o-y to 34% due to opex improvements. Meanwhile, Robi managed to continue churning out profits albeit lower q-o-q despite being more aggressive in acquiring subs.

Prospects look positive for the group as a whole, mainly driven by Celcom and XL while previously underperforming opcos (Dialog and Robi) return to the black. High single-digit growth from Celcom and high teens growth from XL will underpin earnings growth. Despite volatile earnings, Robi has remained profitable for a second consecutive quarter and looks to be on track to remain profitable throughout the year. A positive surprise is Dialog's turnaround, and we are hopeful that continued cost control should enable Dialog to stay in the black this year.

We maintain our earnings estimates as competition will likely put downward pressure on the good margins recorded in 1QFY10 while contribution from XL will be lower from 2QFY10 onwards as Axiata trimmed its stake in XL from 86.49% to 68.49% in March. We also expect financing costs to increase given the recent US$300 million (RM978 million) bonds issuance.

However, we revised our sum-of-parts target price higher to RM4.50 (previously RM4.15) due to lower net debt due to the RM1.7 billion cash received from the partial disposal of XL stake. Hence, we reiterate our buy call. ' ECM Libra Investment Research, May 31


This article appeared in The Edge Financial Daily, June 1, 2010.

AFFIN - Affin's fair value increased to RM3.58

Stock Name: AFFIN
Company Name: AFFIN HOLDINGS BHD
Research House: RHB

Affin Holdings Bhd was raised to "trading buy" from "market perform" at RHB Research Institute Sdn Bhd after the Malaysian bank reported first-quarter profit that was "above expectations."

The stock's fair value was increased to RM3.58 from RM3.03, RHB analyst David Chong said in a report today. -- Bloomberg

CARLSBG - Carlsberg - A merry past, present and future

Stock Name: CARLSBG
Company Name: CARLSBERG BREWERY MALAYSIA BHD
Research House: MAYBANK

Carlsberg Brewery Malaysia Bhd
(May 31, RM4.84)
Upgrade to buy from hold at RM4.73 with revised target price of RM5.50 (from RM4.60): Carlsberg's 1Q10 performance raises confidence that it will be able to realise the full measure of potential sales and synergies at Carlsberg Singapore Private Ltd (CSPL) of at least RM25 million net profit in 2010. We raise 2010-12 forecasts by 20%-22% and our discounted cash flow-based (DCF) target price to RM5.50 (from RM4.60) as a result.

1Q10 net profit of RM37.8 million was up 76.9% year-on-year (y-o-y) and 90.6% quarter-on-quarter (q-o-q). This was due to revenue growth of 30.6% y-o-y and 26% q-o-q coming from CSPL, which contributed, to 22.6% of this quarter's y-o-y sales growth. The slightly later Chinese New Year (CNY) in February 2010 (versus early January 2009) also allowed Carlsberg to capture a fuller part of the festive period's sales from the trade's stocking-up activities.

1Q10 net profit alone formed approximately 33% of our and consensus' full-year forecasts. Other than top-line growth, this was also boosted by improvements in earnings before interest, tax, depreciation and amortisation (Ebitda) margin, which stood at 14% in 1Q10 as compared to 11.4% in the corresponding quarter of 2009. Lower effective rate of 22.6% (-4 percentage points y-o-y, -2.5% percentage points q-o-q) due to lower tax rate in Singapore also contributed to the commendable bottom-line growth.

Carlsberg's 12-month moving average (MA) revenue totalled RM1.13 billion, or RM173.5 million more than its corresponding 12-month MA revenue of RM960.6 million. Allowing for new sales of RM131.9 million at CSPL, this implies that Carlsberg's 12-month MA revenue rose by RM41.6 million or 4.3%. This was less than its rival's RM66.7 million or 5.3% increase in 12-month MA revenue to RM1.33 billion. Thus, Carlsberg's revenue market share fell by 0.3 percentage point in 1Q10 to 43% as its rival Guinness' revenue market share grew more quickly.

With the World Cup football coming up next and the strong start from Singapore's two new integrated resorts, we see no reason for any tapering of near-term sales growth. We are placing our dividends forecasts under review for a potential upgrade. ' Maybank IB, May 31


This article appeared in The Edge Financial Daily, June 1, 2010.

KULIM - Inter-Pacific maintains outperform call on Kulim

Stock Name: KULIM
Company Name: KULIM (M) BHD
Research House: INTER PACIFIC

Kulim (M) Bhd
(May 31, RM7.32)
Reiterate outperform at RM7.32 with target price of RM9: We reiterate outperform with our target price at RM9 based on sum-of-parts valuation. We find Kulim attractive in view of its more attractive PER of 10.1 times vis-a-vis its peers of similar size. As expected, Kulim did not declare any dividend for the quarter.

Kulim's profit before tax (PBT) result of RM165.9 million is fairly in line with our expectation, accounting for 22.7% of our FY10 estimation. We are confident that our forecast revenue and PBT of RM6.9 billion and RM731.1 million will be realised as historically, result will pick up during 2HFY10.

1QFY10 revenue grew by 14.4% year-on-year (y-o-y) to RM1.5 billion supported from all their business segments with the exception of shipping services which posted negative growth. Revenue from food and restaurant services via QSR Brands Bhd grew by 14.3% y-o-y to RM724.7 million, while plantation revenue rose by 16.4% y-o-y following a 24.8% y-o-y gain from Malaysia and 13.1% y-o-y gain from Solomon Islands respectively.

Their palm oil production in Malaysia which rose 8% y-o-y to 36,300 tonnes in 1QFY10 was due to higher OER yield of 20.6%, up 0.6 percentage point from 1QFY09. This, together with higher average CPO selling price of RM2,455 per tonne (RM1,904 per tonne in 1QFY09) saw its profit from Malaysia doubled to RM32.2 million in 1QFY10 (1QFY09: RM16.2 million).

Revenue from their subsidiary plantation business ie New Britain Palm Oil (NBPOL) which grew 13.1% y-o-y growth in 1QFY10 was due to higher fresh fruit bunches (FFB) production (+2% y-o-y) and average CPO selling price of US$767 (+2.7% y-o-y).

Manufacturing business led by Natural Oleo Chemicals posted a profit of RM14.3 million from a loss of RM31 million in 1QFY09. This was due to their oleochemical business that recorded higher revenue of RM277.6 million in 1QFY10 or up 16.2% y-o-y after revenue was hit from cancellation of contracts in 1QFY09. Excluding translation gain of RM19.8 million, the manufacturing segment will be in negative of RM5.5 million in 1QFY10, a much smaller loss in comparison to RM31 million in 1QFY09 and RM11 million in 4QFY09. ' Inter-Pacific Research Sdn Bhd, May 31


This article appeared in The Edge Financial Daily, June 1, 2010.

SIME - Sime Darby - uncertainties linger

Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: OSK

Sime Darby Bhd
(May 31, RM7.75)
Maintain sell at RM7.83 with reduced target price of RM6.74 (from RM7.02): Sime Darby's 9MFY10 results were disappointing, even if we removed the effects of provisioning for its oil & gas (O&G) and engineering division amounting to RM1.33 billion year-to-date (YTD) and RM964 million for 3Q alone.

The plantation segment did better in the 9M, registering a 36.4% increase in earnings before interest and tax (Ebit). The improvement came from both upstream (RM1.56 billion against RM1.29 billion last year) and downstream, which turned around with a RM141,000 operating profit. Its Indonesian operation's fresh fruit bunches (FFB) production rose 23.3%, with group OER improving from 21.4% to 22%, driving the segment's profitability.

Despite the improvement, the segment profits so far suggest that our earlier estimates of RM2.64 billion were too high. Hence, we are cutting it by 8.6% to RM2.41 billion. FY11 and FY12 segment profit forecasts are also cut by similar percentage.

Provisions for Bakun are for estimated cost to completion. While some cost escalation has been provided for, there could still be more although we doubt it would be as significant as what was already provided for. So far, these provisions are non-cash items but will become cash items subsequently.

Segment Ebit declined by 14.8% on lower demand for new heavy equipment in Singapore and Australia. Stripping out the RM19 million gains from property disposal, Ebit fell by 17.8%. We are trimming contribution from Australia by between 9.7% and 13.2% for FY10'FY12 to reflect slower growth.

We have reduced our earnings forecast by 10.3% to 10.5% for FY10'FY12. We are rolling over our target price to 15 times CY11 earnings, which was based on our lower forecast, is cut from RM7.02 to RM6.74. While Sime's massive writedowns and its first-ever quarterly loss hog the limelight, these writedowns mask the weaker-than-expected results in other key divisions. Maintain sell on uncertainty over further writedowns and premium valuation against 'best of breed' companies. A lack of strategic focus and possibly loose internal controls, which we believe led to the sizeable losses, reinforce our belief that Sime's premium valuation is not justifiable. ' OSK Investment Research, May 31


This article appeared in The Edge Financial Daily, June 1, 2010.

MAXIS - Maxis upgraded to 'buy' at ECM Libra

Stock Name: MAXIS
Company Name: MAXIS BERHAD
Research House: ECMLIBRA

Maxis Bhd, Malaysia's biggest mobile phone operator, was upgraded to "buy" from "hold" at ECM Libra Capital Sdn Bhd.

This is due to recent weakness in its share price, ECM Libra said in a report today, maintaining its RM5.90 share forecast. -- Bloomberg

GENTING - OSK Research ups target price for Genting to RM8.90

Stock Name: GENTING
Company Name: GENTING BHD
Research House: OSK

KUALA LUMPUR: GENTING BHD [] rose three sen to RM6.76 at 9.42am Monday, May 31 after OSK Research maintained its buy call on the stock and raised its target price to RM8.90 from RM8.35.

"We continue to like the group as a cheap proxy to Genting Singapore for its alluring growth trajectory.

"The group's active search for global casino M&As and potential divestment of its power assets could potentially be share price catalysts," the research house said in a note Monday.

CARLSBG - Carlsberg Malaysia a 'buy': Maybank

Stock Name: CARLSBG
Company Name: CARLSBERG BREWERY MALAYSIA BHD
Research House: MAYBANK

Carlsberg Brewery Malaysia Bhd, the nation's biggest brewery, was raised to "buy" from "hold" at Maybank Investment Bank Bhd, after first quarter profit jumped 77 per cent from a year earlier.

The share price estimate was increased to RM5.50 from RM4.60, Maybank Investment said in a report today. -- Bloomberg

AXIATA - Axiata upgraded to 'buy' from 'hold'

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Research House: HWANGDBS

Axiata Group Bhd was upgraded to "buy" from "hold" at HwangDBS Vickers Sdn Bhd, with a raised share forecast of RM4.50.

The research house said in a report today it also increased the mobile phone company's earnings estimate by 46 per cent for its 2010 financial year and by 39 per cent for 2011.

Its shares climbed 1.1 per cent to RM3.73 at 9:04 am local time, set for their highest close since May 19.-- Bloomberg

TCHONG - A strong start for the year

Stock Name: TCHONG
Company Name: TAN CHONG MOTOR HOLDINGS BHD
Research House: MIDF

Tan Chong Motor Holdings Bhd
(May 27, RM3.95)
Upgrade to neutral from sell at RM3.83 with higher target price of RM3.61 (from RM3.50): Revenue improvement is in line but profit was a surprise on the upside. For 1Q, the group's revenue expanded by 26% year-on-year (y-o-y) on the back of a 5% increase in car sales. The stronger sales can be attributed to (i) faster delivery, (ii) aggressive promotions and (iii) a shift in sales mix where demand switches from high-end purchases to lower-end vehicles. Total industry volume (TIV) of new vehicles in Malaysia for 1Q10 improved by 22.4% to 147,415 units from 120,389 units in 1Q09. The group commands a 5.3% market share of the car market.

1Q10 operating margin was at 10.7% versus 7.4% recorded in the same period last year on the back of (i) higher ringgit that pushed the Japanese yen costs lower, (ii) better economies from the ramp-up in production in the quarter, and (iii) more sales of higher-end vehicles with higher margins. Margins could be sustained at around the 10% level for the year as business environment improves.

The general view for the remainder of this year is positive, underpinned by (i) ramp-up in production that would improve economies of scale, from 2,000 units to 3,000 units per month,'' (ii) shorter delivery period that would help to support sales turnover, and (iii) three new models would be introduced this year ' the 2WD Navarra pick up, X-Trail and the CKD Teana ' to compete with Camry and Accord.

Overseas expansion should provide the catalyst over the longer term. The group aims to be an integrated automotive supply chain manager in the region and so has made its moves into Thailand and Vietnam with Indonesia, Laos and Cambodia next. So far, contribution is minimal and we expect any meaningful contribution to be felt in FY11. ''

Upgrade to neutral from sell. We fairly value the counter at RM3.61 based on 10 times FY10 earnings, which is inline with the sector average. We have not imputed the impact from any property investment until a much clearer picture emerges. ' MIDF Research, May 27


This article appeared in The Edge Financial Daily, May 27, 2010.

PROTON - Proton zooms past expectations

Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD
Research House: MAYBANK

Proton Holdings Bhd
(May 27, RM4.67)
Maintain buy at RM4.44 with revised target price of RM5.90 (from RM5): We remain buyers of Proton with a higher target price of RM5.90 (+18%) as we lift FY11-12 earnings by 18%-20%. Operations and financials are improving whilst valuations are inexpensive. Strategic alliance(s) with reputable global original equipment manufacturers (OEM) maker(s) (VW, Renault, and Mitsubishi) is a key re-rating catalyst. Buy.

Core net profit of RM76 million (+112% quarter-on-quarter) in 4QFY10, on the back of higher revenue (+12% q-o-q) and earnings before interest and tax (Ebit) margin (+2.2 percentage points q-o-q) was ahead of our expectations. The underlying strength came mainly from higher vehicle sales (+11%) and lower operating (selling, distribution, administration and overheads) costs (-10% q-o-q to RM7,842 per unit).

Domestic operations led growth, 99% of Group Ebit (+218% q-o-q; margin: +2.8 percentage points q-o-q). Domestic vehicle sales totalled 38,781 units in 4Q (+7% q-o-q) whilst overseas unit sales grew a higher 47% q-o-q (8,061 units). However, overseas Ebit contracted 88% q-o-q, which we suspect was affected by higher advertising and promotion spending. Elsewhere, Proton recognised a one-off loss of RM53 million (nett) in 4Q.

Balance sheet continues to strengthen, with tighter inventory management (-2% q-o-q), which resulted in a stockholding period of just one month. This also helped net cash to grow to RM1.4 billion as at March 2010 (+8% q-o-q), equivalent to RM2.59 per share. No final dividend was declared.

FY11-12 core net profit is raised by 18%-20% as Proton reaps benefits of economies of scale and ongoing cost-cutting measures. Its best selling models (ie Saga, Persona and Exora) will continue to drive sales in FY11. The new Waja replacement model will be introduced by 2HFY11 together with some new variants of existing models. Proton will most likely consolidate its production facilities in Tanjung Malim, Perak and dispose of its Shah Alam land.

Raising target price to RM5.90, as we change our valuation methodology to 12 times FY11 EPS (from 0.5 times book). Proton offers excellent value with multiple key re-rating catalysts. We do not rule out strategic tie-up(s) with global OEM automakers (ie VW, Renault, Mitsubishi). ' Maybank Investment Bank Bhd, May 27


This article appeared in The Edge Financial Daily, May 27, 2010.

APM - APM Automotive - a good headstart

Stock Name: APM
Company Name: APM AUTOMOTIVE HOLDINGS BHD
Research House: INTER PACIFIC

APM Automotive Holdings Bhd
(May 27, RM4.20)
Reiterate outperform at RM4.31 with revised target price of RM5: We tweaked upwards our FY10 earnings estimate by 43.4% and introduced our FY11 forecasts. We reiterate outperform and revised our target price to RM5 (RM4.30 previously) based on FY10 forecast EPS of 54.7 sen and PER of 9.1 times. We remain positive on APM given their solid strong free cash flow, attractive dividends and a solid balance sheet amid resilient net cash position which stands at RM1.40 per share as at March 31, 2010. Key risks include: (1) economic recovery slowdown; (2) lower-than-expected industry vehicle sales volumes; and (3) weakening ringgit.

APM's annualised 1QFY10 net profit of RM25.9 million is above our expectation and consensus, which accounts for 35.6% and 28.8% of our full year forecast and market consensus respectively. As expected, no dividend was declared for the quarter under review.

For 1QFY10, net profit grew significantly by 151.8% year-on-year (y-o-y) on the back of strong revenue growth, up 49.4% y-o-y. The remarkable performance was driven by: (1) higher production volume and economies of scale; (2) better selling prices; and (3) strengthening of functional currencies against the major trading currencies which effectively lowered the import materials cost. Earnings before interest, tax, depreciation and amortisation (Ebitda) margin rose by 5.1 percentage points to 16.4% in 1QFY10, despite higher operating cost, up 41% y-o-y in 1QFY10.

In the domestic operations, the total vehicle production (TIP) rose by 25.6% y-o-y to 143,147 units in 1QFY10. Meanwhile, their original equipment manufacturer (OEM) revenue surged by 66.5%, thanks to the higher supply of interior and plastic car parts to the newly launched national model like Perodua MPV, Alza. Perodua will increase the production of Alza by 50% to 6,000 units per month in 2HCY10. Additionally, Perodua car sales in March posted at 18,500 units, which bring its 1QCY10 sales to 47,755 units. If we annualise the total FY10 sales, it will be at 191,000 units, which is about 9% higher than Perodua's own projection of 176,000 units. As for their overseas operations, revenue and PBT improved significantly, up 106.9% y-o-y and 1609.9% y-o-y in 1QFY10 due to higher demand for new vehicles from Indonesia. ' Inter-Pacific Research Sdn Bhd, May 27


This article appeared in The Edge Financial Daily, May 27, 2010.