RHBInvest Research Highlights 18th January 2012

Stock Name: IJM
Company Name: IJM CORPORATION BHD

Research House: RHB

Price Call: SELL

Target Price: 4.48

Stock Name: TENAGA
Company Name: TENAGA NASIONAL BHD

Research House: RHB

Price Call: HOLD

Target Price: 6.50

Stock Name: AXREIT
Company Name: AXIS REITS

Research House: RHB

Price Call: HOLD

Target Price: 2.72

Stock Name: FAJAR
Company Name: FAJARBARU BUILDER GRP BHD

Research House: RHB

Price Call: HOLD

Target Price: 0.86

Stock Name: MBMR
Company Name: MBM RESOURCES BHD

Research House: RHB

Price Call: BUY

Target Price: 3.90

Stock Name: TCHONG
Company Name: TAN CHONG MOTOR HOLDINGS BHD

Research House: RHB

Price Call: HOLD

Target Price: 4.40

Stock Name: UMW
Company Name: UMW HOLDINGS BHD

Research House: RHB

Price Call: SELL

Target Price: 6.20

Stock Name: APM
Company Name: APM AUTOMOTIVE HOLDINGS BHD

Research House: RHB

Price Call: HOLD

Target Price: 4.30

Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD

Research House: RHB

Price Call: HOLD

Target Price: 5.50

Stock Name: DRBHCOM
Company Name: DRB-HICOM BHD

Research House: RHB

Price Call: HOLD

Target Price: 2.20

18th January 2012

 

Top Story

IJM Corp ' Kajang- Seremban Highway not living up a cash cow                                  Underperform Company Update -          FY03/12-14 net profit forecasts are trimmed by 3% p.a., having imputed share of RM20m net loss p.a. from Lekas. Fair value reduced by 2% from RM4.59 to RM4.48. Maintain Underperform. -          Related story : IJM Corp Results/Briefing Note ' 1HFY03/12 Core Net Profit Grows 11% YoY, Slight Delays In WCE and NPE Extension (29 Nov 2011)

Sector Update

Motor ' A better 2012                                                                                                Underweight Sector Update MBM Resources ' Fair value RM3.90                                                                           Outperform Tan Chong ' Fair value RM4.40                                                                             Market Perform UMW ' Fair value RM6.20                                                                                        Underperform APM ' Fair value RM4.30                                                                                       Market Perform Proton ' Fair value RM5.50                                                                                   Market Perform DRB-HICOM ' Fair value RM2.20                                                                           Market Perform -          MAA (Malaysian Automotive Association) guidance is for Jan 2012 vehicle sales to improve slightly given ongoing promotional campaigns and the seasonal rush to deliver new vehicles ahead of the Lunar New Year holidays. We are revising our 2012 TIV forecast to 612,000 units (+2% yoy) from 607,000 units on the back of RHBRI's 3.6% GDP growth forecast and 5.3% rise in consumption spending. -          Related story: Motor Sector Update  ' Seasonal Slump And Floods Hit Sales (20 Dec 2011)

Corporate Highlights

TNB ' On recovery path                                                                                         Market Perform Results / Briefing Note -          FY12 core earnings forecast raised by 22% after imputing an additional 50 mmscfd of gas to be received by TNB beginning Mar. Fair value revised to RM6.50 (from RM6.15) based on unchanged target CY12 PER of 15x.  Maintain Market Perform. -          Related story: TNB Results Preview  ' Slight improvement in 1Q (16 Jan 2012)   Axis REIT ' More asset acquisitions in the pipeline                                                 Market Perform Briefing Note -          Axis REIT is currently looking at 11 potential assets totalling RM545m that could be injected into the REIT over the next 2 years, with half targeted to be acquired by end-2012. -          Our EPS forecasts have been revised slightly by 0.8-1.1% for FY12-14 after we factor in lower interest expenses. We raise our fair value slightly to RM2.72 (from Rm2.70) after revising our FY12 DPU estimates. Maintain market Perform. -          Related stories: Axis REIT 4Q11 Results Note ' Total DPU of 17.2 sen for FY11 (17 Jan 2011); Axis REIT News Update ' Acquisition in Bayan Lepas (27 Oct 2011); Axis REIT News Update ' New Acquisition in Penang (29 Sep 2011)   Fajarbaru ' Completes private placement of 15m new shares at RM0.90/share         Market Perform Company Update -          Fajarbaru has completed a private placement of 15m new shares at RM0.90 per share.  -          The RM13.5m gross proceeds from the exercise will increase its net cash of RM24.2m as at 31 -          Fair value is reduced by 5% from RM0.91 to RM0.86.  Maintain Market Perform. -          Related story: Fajarbaru News Update  ' Lands RM62m Sewerage Treatment Plant Job In Selangor (22 Dec 2011)