Company Name: CSC STEEL HOLDINGS BERHAD
| Research House: HLG | Price Call: HOLD | Target Price: 1.62 |
SP Setia (HOLD)
Acquires land in Beranang
'''' SP Setia plans to acquire 1,010.5 acres of freehold land in Beranang, Daerah Ulu Langat, Negeri Selangor for RM330m, or RM7.50 psf (compared to RM5.46 psf for Sunway City's land in Semenyih, acquired back in 1996).
'''' The land is situation between the towns of Semenyih, Bangi Old Town and Beranang, and is approximately 19km from the proposed Bandar Kajang MRT station on the Sungai Buloh-Kajang line.''
'''' The group plans to develop a mixed residential township with RM3.5bn of GDV.'' We see this as a positive move as it allows SP Setia to replicate their highly successful valued-added township concept in Setia Alam.''
'''' We do not expect any significant impact for FY11-13, as the group's focus will be on key projects including KL Eco City, Setia Alam / Eco Park, Setia Sky Residences and Fulton Lane in Melbourne during this period of time.
'''' Trades at industry-leading 23.7x P/E with limited upside; maintain HOLD.
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CSC Steel (HOLD)
1H11 Results: Below expectations
'''' 1H11 reported net profit of RM30.4m came in below expectations, accounting for 41.4% of our full-year forecasts and 35.8% of the consensus full-year estimates.
'''' 2011-13 net profit forecasts cut by 7.1-27.9% to RM53.0m, RM77.1m and RM78.0m respectively, to reflect lower selling price and higher raw material cost.
'''' Following the cut in our 2011-13 net profit forecasts, we are cutting our TP for CSC Steel by 7.4% to RM1.62 based on 8x 2012 EPS of 20.3 sen.''
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FBM KLCI - Signs of stability returns
'''' Despite the 4.2% rebound from last week's low of 1423 pts, we remain cautious on the market (especially ahead of the long holiday week ahead in end Aug) and will only turn bullish if the KLCI is able to penetrate the 200-d SMA (1530 pts) level on high volume. Relief rally targets are 1500, 1510 (50% FR) and 1530. Support levels are 1470, 1464 (76.4% FR) and 1450 pts.
Stock to watch - AIRASIA: Medium term uptrend remains intact
'''' Following the breakdown of its mid-Bollinger band (RM3.75), 10-d (RM3.86) and 30-d (RM3.67) SMAs supports, AIRASIA near term has turned negative. Nevertheless, we are relieved that the long term uptrend line (RM3.15) and lower Bollinger band (RM3.30) supports remain intact, and coupled with oversold indicators and an uptick in Money Flow Index, a technical rebound is in the pipeline this week.
'''' Resistance levels are RM3.67 and RM3.86 and supports are RM3.30 and RM3.15. Cut loss below RM3.15.
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