RHBInvest Research Highlights 04th October 2011

Stock Name: PETGAS
Company Name: PETRONAS GAS BHD

Research House: RHB

Price Call: BUY

Target Price: 14.50

Stock Name: DIALOG
Company Name: DIALOG GROUP BHD

Research House: RHB

Price Call: BUY

Target Price: 3.26

Stock Name: KENCANA
Company Name: KENCANA PETROLEUM BHD

Research House: RHB

Price Call: BUY

Target Price: 2.21

04th October 2011

 

Top Story: Oil & Gas ' Taking a step back in view of global headwinds        Neutral (down from OW)

Sector Update

Petronas Gas: Fair value at RM14.50                                                                  Outperform

Dialog: Fair value downgraded to RM3.26 from RM3.90                                   Outperform

Kencana: Fair value downgraded RM2.21 from RM2.99                                   Market Perform

SapuraCrest:  Fair value downgraded to RM3.36 from RM4.56                      Market Perform                                                                                                         

Petronas Chemicals: Fair value downgraded to RM5.62 from RM6.37         Market Perform

Dayang: Fair value downgraded to RM1.55                                                        Market Perform (down from OP)

Wah Seong: Fair value downgraded to RM1.87                                                 Market Perform (down from OP)

Perdana Petroleum: Fair value downgraded to RM0.60                                  Market Perform (down from OP)

KNM: Fair value downgraded to RM0.70 from RM0.93                                      Underperform

MMHE: Fair value downgraded to RM3.93 from RM5.62                                   Underperform

RH Petrogas: Fair value downgraded to S$0.75 from S$1.36                         Outperform                         

 

Sector Call

 

Semiconductor: Aug global chip sales falls 2.2% yoy               Underweight

Sector Update

Unisem: Fair value at RM0.73                                                       Underperform

MPI: Fair value at RM2.07                                                               Underperform

Notion Vtec: Fair value at RM1.30                                               Underperform

 

Corporate Highlights

 

Amway: Resilient fundamentals                                         Outperform

Visit Note

''       We recently had a meeting with management of Amway. Based on our discussions, we came out of the meeting fairly confident of the resilience of Amway's topline outlook, underpinned by a stable Core Distributor Force (CDF) recruitment drive and membership productivity.

 

SapuraCrest: Platform Supply Vessel contract win        Market Perform

News Update

''       Yesterday, the company announced that its 50%-owned Labuan Shipyard & Engineering (LSE) had been awarded a contract by Tanjung Offshore worth RM99.5m to engineer, construct, test and deliver a 77-metres platform supply vessel. The vessel is expected to be completed within 21 months, which will contribute to Sapuracrest's FY13 earnings.

 

SP Setia: A bigger development in Beranang                 Market Perform

News Update

''       SP Setia proposed to acquire 673.27 acres of freehold land in Semenyih for RM381.3m or RM13 psf.