Bursa Malaysia Stock Price Target: 02/26/12

TECFAST ( 0084 : 0.145 ) : Targeting 0.16

Description

Resistance : 0.16 0.19
Support : 0.12

RSI of 69
RSI is on the rise

STOCHASTIC
It riding on an upswing

TREND INDICATOR

Comment
Following the consolidation breakout, it is heading for 0.16, and possibly 0.19

Trading Strategy
Buy. Stop loss is at 0.12

Source: Jupiter Securities Research 7 March 2012

Stock Overview - PADINI - 7 Mar 2012

Stock Name: PADINI
Company Name: PADINI HOLDINGS BHD

Research House: JUPITER

Price Call: BUY

Target Price: 1.35

PADINI ( 7052 : 1.48 ) : Stop loss 1.35

Description

Resistance : 1.83
Support : 1.35

RSI of 78
RSI is overbought

STOCHASTIC
It riding on an upswing

TREND INDICATOR

Comment
The current uptrend has an upside of 1.83. A tight stop loss should be placed at 1.35

Trading Strategy
Buy. Stop loss is at 1.35

Source: Jupiter Securities Research 7 March 2012

Stock Overview - MUDAJYA - 7 Mar 2012

Stock Name: MUDAJYA
Company Name: MUDAJAYA GROUP BHD

Research House: JUPITER

Price Call: BUY

Target Price: 3.22

MUDAJYA ( 5085 : 2.94 ) : Targeting 3.22

Description

Resistance : 3.22
Support : 2.79

RSI of 63
RSI is on the rise

STOCHASTIC
It riding on an upswing

TREND INDICATOR

Comment
The current resumption off the low of 2.79, is heading for 3.22. Downside is limited to a pullback support of 2.86

Trading Strategy
Buy. Stop loss is at 2.79

Source: Jupiter Securities Research 7 March 2012

Stock Overview - GOCEAN - 7 Mar 2012

Stock Name: GOCEAN
Company Name: GREEN OCEAN CORPORATION BERHAD

Research House: JUPITER

Price Call: BUY

Target Price: 0.42

GOCEAN ( 0074 : 0.305 ) : Targeting 0.42

Description

Resistance : 0.42
Support : 0.17 0.25

RSI of 68
RSI is on the rise

STOCHASTIC
It riding on an upswing

TREND INDICATOR

Comment
It has bottomed at the 0.25 low, a 61.8% retracement, indicating a likely push up to 0.42. A tight stop loss should be placed at 0.25

Trading Strategy
Buy. Stop loss is at 0.25

Source: Jupiter Securities Research 7 March 2012

'Hock Seng Lee land acquisition to do well'

Hong Leong Investment Bank (HLIB) sees Hock Seng Lee (HSL) Bhd's land acquisition move at Bandar Samariang in Sarawak as being positive following the company's successful project previously.

The land is nearby its award-winning residential project, Samariang Aman.

"We believe it will do well due to the positive spill over effects from Samariang Aman," it said in a research note.

The project involves 1,500 houses -- semi-detached, quadruplex, terraced, 2,000 affordable units and 40 shophouses, it said.

The bank said the RM2.10 per square feet acquisition price looked attractive from the RM5 per sq ft market price for the area.

The research house is recommending a "buy" call on Hong Seng Lee,
maintaining its RM2.20 target price. -- Bernama

Tan Chong Motor Holdings - Another brand under its belt

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

Research House: CIMB

Price Call: HOLD

Target Price: 4.60

Target RM4.60

Tan Chong's appointment as a contract assembler for Subaru is a good low-risk strategy to help optimise its production facilities. An assumption of RM30m in total assembly and localisation charges from this deal would push up our FY13 net profit projection by c.5%.

Source: CIMB Day Break 07 March 2012, Full PDF Report

HSL (BUY) - Samariang land bank coup

Stock Name: HSL
Company Name: HOCK SENG LEE BHD

Research House: HLG

Price Call: BUY

Target Price: 2.21

HSL (BUY)

Samariang land bank coup

Entered into a S&P Agreement with Projek Bandar Samariang for thepurchase of a 275.5 acre land in Kuching's northern township of Samariangfor a total cash consideration of RM25.5m, equivalent to ~RM2.10/sq ft. Thelatest acquisition will enlarge HSL's existing land bank to a total of 890acres.

We belief that it will do well due to the positive spill over effectfrom Samariang Aman. The latest land deal will ensure continuity in HSL'sproperty launches in Samariang area.

GDV is estimated to be worth ~RM700m and the development is expected tocommence in 2013 and will span over a development period of 6 to 8 years.

The acquisition price of ~RM2.10/sq ft looks attractive compared to themarket price of ~RM5/sq ft for the area. Overall, land cost-to-GDV ratio is~3.6%, hence increasing the development's feasibility and success rate as wellas profitability.

By assuming a 10% discount rate over 7-years and 25% net profit margin,Samariang Aman 3 will translate to 16 sen/share for HSL.

Forecasts remain unchanged, hence maintain TP of RM2.21 based on12x average FY12 and FY12 earnings.

Source: HLIB Research 7 March 2012

CIMB: San Miguel near final deal with CIMB on bank unit

Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD

Research House: ECMLIBRA

Price Call: BUY

Target Price: 7.00

Philippine conglomerate San Miguel Corp is close to a deal to sell 60% of its banking unit to Malaysia's second largest lender CIMB Group Holdings (CIMB MK, Hold, TP: RM7.00), with the two agreeing on a final price, the chairman of Bank of Commerce said. The deal, is expected to be finalised this month, will provide San Miguel with fresh funds to close its US$610m (RM1.84bn) purchase of ExxonMobil Corp's Malaysian assets, or to invest in new acquisitions such as flag carrier Philippine Airlines Inc. (Financial Daily)

Source: ECM Newz Bits 07 March 2012

Tan Chong Motor: Maintain Sell - Assembly agreement with TC Subaru

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

Research House: MAYBANK

Price Call: SELL

Target Price: 4.00

Good for plant utilisation but Neutral to earnings. TCM's contract assembly works for the Subaru marque, catering for the ASEAN market, will lift its Segambut plant utilisation from 2013 onwards but will only contribute marginally to earnings, we estimate. Maintain Sell, with an unchanged TP of 4.00, based on 8x 2013 PER.

Maybank Research 7 March 2012

Click here for full report

SapuraCrest Petroleum: Maintain Hold - Charters T-9 rig to PCSB

Stock Name: SAPCRES
Company Name: SAPURACREST PETROLEUM BHD

Research House: MAYBANK

Price Call: BUY

Target Price: 5.62

Maintain Buy; RM5.62 TP has upside potential. The Petronas Carigali Sdn Bhd (PCSB) contract charter for the T-9 rig is earnings- neutral to SapCrest, for the daily charter rate (DCR) is relatively similar its previous contract with EMEPMI albeit for a shorter duration. With two more rig contracts set to expire by 1H12, we expect minimal difficulties in seeking contract extensions at decent rates owing to the greater number of drilling programmes planned for the next two years. Our RM5.62 TP excludes contributions from its 49% stake in FPSO Berantai. Incorporating this would lift our TP to RM5.94.

Maybank Research 7 March 2012

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Sime Darby: Maintain Hold - In talks to buy Jimah IPP

Stock Name: SIME
Company Name: SIME DARBY BHD

Research House: MAYBANK

Price Call: HOLD

Target Price: 9.90

Muted impact even if it goes through.Talks are still preliminary, we understand, but we expect a muted impact on Sime's bottom line even if its reported acquisition of the 1,400MW coal-fired Jimah power plant in Port Dickson, Negeri Sembilan does go through. Sime is still a Hold, with unchanged TP of RM9.90 based on 16x CY13 PER.

Maybank Research 7 March 2012

Click here for full report

TCHONG (FV RM4.00 - NEUTRAL) Corporate News Flash: To Assemble Subaru Cars

THE BUZZ

Following its earlier MOU in June last year, Tan Chong Motor(TCM) finally announced that its 70%-owned subsidiary, Tan Chong MotorAssemblies SB (TCMA), has secured a contractual assembly agreement with itssister company, TC Subaru, which is owned by Tan Chong International Ltd. Theexpected total assembly charges and related localisation fees payable by TCS toTCMA for duration of the agreement is estimated at RM30.22m. TCMH told BursaMalaysia that the agreement, which took effect yesterday up to 31 Dec, 2013,has an option for extension. The capex will solely be borne by TC Subaru.

OUR TAKE

What the contractentails. We understand that the Subaru model that is likely to be assembled could be the latest SUV, the Subaru Compact XV (see picbelow), with a likely target of 5000 units catering to the ASEAN market. Tan Chong International,a sister company of TCM, shares a common shareholder. At RM30m, this translatesinto revenue of RM6044 per car assembled, which is below the earlier guidancefor RM9000 per car set, taking into consideration that it is a related partytransaction.

Minimal impact onearnings. Management had earlier guided that production will likely commencesometime in October 2012. Hence,the initial contribution to its bottomline would be minimal. For 2013,however, we estimate the contribution to TCM's earnings to be RM3m-RM5m, which is still very small in relation to its forecast bottomline of RM260m for FY12. What is more significant is that the assembly agreementwill raise the capacity utilization atthe company's Segambut plant by 15%. The plant is currently under-utilizedsince most of TCM's vehicles are now produced at the Serendahplant. Hence, there could be further cost savings on unit fixed costs. MaintainNEUTRAL. We maintain our earnings, as well as our FV of RM4.00, which is peggedto 10x FY12 EPS, in line with the sector average.

Source: OSK188

PCHEM - Progress on JV with BASF

Stock Name: PCHEM
Company Name: PETRONAS CHEMICALS GROUP BHD

Research House: HWANGDBS

Price Call: SELL

Target Price: 5.50

Petronas Chemicals; Fully Valued; RM6.92
Price Target: RM5.50; PCHEM MK

The media reported that Petronas has entered into a heads of agreement with BASF for the development of the Refinery & Petrochemical Integrated Development (RAPID) complex in Pengerang, Johor. Under the agreement, Petronas will hold a 40% stake in the JV while BASF will hold the remaining 60%.

The JV will be developing production facilities for specialty chemical products including isononanol, highly reactive polyisobutylene, non-ionic surfactants, methanesulfonic acid, and plants for precursor material which is part of the MoU signed between the parties in Dec10 for a potential joint investment of RM4bn in Pengerang and their existing facility in Gebeng, Pahang.

In addition, Petronas Chemicals and BASF will expand their C3 value chain with a new plant for superabsorbent polymers, as well as to expand the production capacity of their existing glacial acrylic acid unit in Gebeng, pursuant to their feasibility study (initially to be concluded by end-11).

While the RAPID project is signed by Petronas, we believe that Petronas Chemicals, being the downstream subsidiary of Petronas is likely to be the owner and operator of the massive project when more details are finalized at the later stage of the feasibility study for the RAPID project which is expected to be concluded by end-12. The RAPID project is expected to be commissioned by 2016.

There is no change to our forecast. We reiterate our Fully Valued call with RM5.50 TP, based on 13x FY12 EPS. We remain cautious of PCG's near-term earnings outlook given the potentially weaker demand for petrochemicals and softer product prices. Also, there will not be any capacity growth for Petronas Chemicals at least for the next 3 years.

Source: HwangDBS Research 7 March 2012

PPB - No rerating catalysts

Stock Name: PPB
Company Name: PPB GROUP BHD

Research House: HWANGDBS

Price Call: SELL

Target Price: 15.00

PPB Group; Fully Valued; RM16.86
Price Target: RM15.00; PEP MK
Expansion of flour business is a long term story. No upside for dividends with higher capex. Maintain Fully Valued, RM15.00 TP.

Source: HwangDBS Research 7 March 2012

HSL (FV RM1.99 - BUY) Corporate News Flash: Buys Land For New Township

Stock Name: HSL
Company Name: HOCK SENG LEE BHD

Research House: OSK

Price Call: BUY

Target Price: 1.99

Details on the land. The 275.5 acres is part of a piece of leasehold land in Bandar Samariang Township in Kuching, Sarawaktotaling 2,795 acres. Located in therapidly expanding northern part of Kuching City and a 20-minute drive from the city centre, Bandar Samariang is an establishedtownship with some 5,000 homes and an estimated population of 25,000. The leaseon the land expires on 8 April 2098.

Samariang Aman 3 onits way. With the acquisition, HSL's landbank will swell to 890 acres.According to management, the land is earmarked for a mixed commercialand residential development called Samariang Aman 3, which is a continuation of its SamariangAman and Samariang Aman 2 developments. The proposed township will have about 1,500 landed residential homes comprising amix of semi-detached, quadruplex and terrace houses, 2,000 units of affordablehouses and 40 units of commercialshophouses. Spanning a development period of 6 to 8 years, the project as awhole is valued at a GDV of RM700m. Its initial launch is expected to takeplace as soon as 2014,.

Likely to be Internally funded. We believe theacquisition will be likely be funded through HSL's RM183.7m cash pile as ofDec 2011, which translates into an appealing RM0.32/share. With zero borrowings so far, theacquisition is unlikely to strain the company'sbooks.

BUY. While wemake no changes to our FY12 and FY13 forecasts at this juncture given that anycontribution from the proposed Samariang Aman 3 project would likely come in onlyby FY14, we continue to like HSL's strong execution track record of leveragingon its marine engineering expertise. Besides, the company is also the best proxy to Sarawak's construction play. Note that early this week, 2 South Koreancompanies -Dongbu Metal and Asia Cement' made a commitment to invest a combined USD650m in the Samalaju Industrial Park in Bintulu. That said, we continue to expectmore contracts to flow from SCORE as we believe that there may be apotential revival of infrastructure projects in this region in therun-up to the national polls. Hence, we maintain our BUYcall, at an unchanged FV of RM1.99, pegged at 12x FY12 PER.

Source: OSK188

KimLun (BUY; FV: RM2.07, Last Closing: RM1.53)

Stock Name: KIMLUN
Company Name: KIMLUN CORPORATION BERHAD

Research House: OSK

Price Call: BUY

Target Price: 2.07

Contract flows picking up momentum. The announcement came in as a positive surprise to us, with KimLun's YTD jobs securedstanding tall at RM445m. As we step into 2QCY12, KimLun has already exceededour expectations by achieving 74.2% of our orderbook replenishment forecast ofRM600m p.a. for both FY12 and FY13. Nonetheless, we make no changes to ourassumptions for now, although there is a potential upside bias should the groupsecure the supply of tunnel lining segment for the KV MRT SBK line as well assome possible job flows from the Singapore MRT on new line expansions.

Keep an eye out fortunnel lining segment. Earlier last month, KimLun entered into a sale andpurchase agreement to acquire a parcel of industrial land in Seremban for RM15.5mto construct a new precast plant. Thisexpansion will prime the company for potentially securing some tunnel liningsegment contracts in the underground portion of the MRT SBK line. We expect itsshare price to continue to trend upwards, pending the official award of thetunneling portion of the said line by MRT Corp come April this year. Weunderstand that the Gamuda-MMC JV, whichwe believe is likely to snag the tunneling portion, hadvisited KimLun's existing precast plants to conduct quality control checks.Over the medium term, we expect to hear more from the Iskandar region while inthe long run, we believe KimLun will likely gain a stronger foothold inSingapore, as we understand that a 35km underground cable tunnel is likely tobe awarded this year, with the 50km Thompson Easter Region line also in thepipeline.

BUY. Maintain ourBUY call at an unchanged FV of RM2.07 based on 10x FY12 PER. We continue tolike KimLun given its strong execution track record, sturdy job wins YTD, aswell as its increasing presence in the Johor and Singapore region. Thus, weview it as the best small cap proxy for Malaysia's construction sector.

Source: OSK188

Subaru deal to raise Tan Chong plant usage

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

Research House: OSK

Price Call: HOLD

Target Price: 4.00

Tan Chong Motor Assemblies (TCMA) Sdn Bhd's contract to assemble passenger vehicles for TC Subaru Sdn Bhd will raise the capacity utilisation of its Segambut plant by 15 per cent, said OSK Research.

Tan Chong Assemblies is a 70 per cent subsidiary of Tan Chong Motor Holdings Bhd (TCM) while TC Subaru is a subsidiary of Tan Chong International.

The plant is currently under-utilised since most of TCM's vehicles are now produced at the Serendah plant, OSK said.
"Hence, there could be further cost savings on unit fixed costs," it said in a research note today.

The contract to assemble passenger vehicles for TC Subaru was effective yesterday until Dec 31, 2013.

"For 2013, we estimate the contribution to TCM's earnings to be between RM3 million and RM5 million, which is still very small in relation to its forecast bottomline of RM260 million for 2012 financial year," OSK added.

The research firm said it has maintained a "Neutral" call and earnings for the company as well as its fair value of RM4, which is pegged to 10 times financial year 2012 earnings per share in line with the sector average. -- BERNAMA

Hong Leong: 'Neutral' call on plantation stays

Stock Name: CBIP
Company Name: CB INDUSTRIAL PRODUCT HOLDING

Research House: HLG

Price Call: BUY

Target Price: 3.03

Stock Name: TWSPLNT
Company Name: TRADEWINDS PLANTATION BHD

Research House: HLG

Price Call: BUY

Target Price: 5.04

Hong Leong Investment Bank (HLIB) is maintaining its 'neutral' stance on the plantation sector given the unattractive valuation, in particular, the bigger plantation players relative to their regional peers.

In a research note today, HLIB said although Malaysia started as a leader in palm biodiesel, its production growth underperformed the global diesel output, in particular, Colombia, Thailand and Indonesia.

"This is due to weaker cost competitiveness because of duty differential disadvantage against Indonesia and Argentina that has impaired its price competitiveness in the export market," it said.

It said another factor was the slow pace of B5 implementation.
An industry expert believed that several measures were required to ensure higher biodiesel consumption locally, it said.

Meanwhile, HLIB said it would keep average crude palm oil (CPO) price forecast of RM3,000 a tonne for this year, at the lower-end of the projected price range of RM3,000 to RM4,500, for three reasons.

It said the CPO price would likely weaken once La Nina subsided (expected by mid-2012).

"The current global economic headwinds may curb demand and prices of palm oil and the CPO production recovery is expected to begin this month," it said.

HLIB said the CPO prices would be supported by the lower-than-expected soyabean yield, resulting in higher soyabean prices, hence boosting prices of CPO.

It has put a 'buy' call on CB Industrial Product Holding Bhd and Tradewinds Plantation Bhd with target prices of RM3.03 and RM5.04, respectively. -- BERNAMA

4QFY11 resulted boosted by windfall from legal case won

Stock Name: CBSA
Company Name: CBSA BERHAD

Research House: ZJ

Price Call: HOLD

Target Price: 0.43

March 6, 2012

Buy Perisai shares: HwangDBS

Stock Name: PERISAI
Company Name: PERISAI PETROLEUM TEKNOLOGI

Research House: HWANGDBS

Price Call: BUY

Target Price: 1.20

Perisai Petroleum Teknologi Bhd (Perisai) is expected to see an explosive growth in its financial year of 2012 (FY12) with 100 per cent fleet utilisation and potential earnings enhancement from asset acquisition, says HwangDBS Vickers Research.

In a research note today, HwangDBS said the completion of Perisai's mobile offshore production unit (MOPU)'s acquisition in January will more than double its earning to RM85 million in the year.

There could be earnings accretion from the transfer of ownership of Intan's Offshore Sdn Bhd's vessel to a Labuan-registered company which expected to be completed by third quarter this year, it said.

It also noted that Perisai is looking at marine assets worth at least US$100 million, as early as the second half of this year, to mark its entry into the less-competitive market.

Given this, the research house is maintaining its "buy" call on Perisai with a target price of RM1.20. -- Bernama

Widens regional reach by strengthening stock brokering business

Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD

Research House: MIDF

Price Call: HOLD

Target Price: 7.70

Stock Overview - FABER - 6 Mar 2012

Stock Name: FABER
Company Name: FABER GROUP BHD

Research House: JUPITER

Price Call: BUY

Target Price: 2.03

FABER ( 1368 : 1.86 ) : Targeting 2.03

Description
Hotel management

Resistance : 2.03
Support : 1.70

RSI of 60
RSI is on a rebound

STOCHASTIC
It is riding on an upswing

TREND INDICATOR

Comment
Following the recent consolidation breakout, it is likely to head higher to 2.03 Trading Strategy Buy. Stop loss is at 1.70

Source:Jupiter Securities Research 6 March 2012

Stock Overview - POS - 6 Mar 2012

Stock Name: POS
Company Name: POS MALAYSIA BHD

Research House: JUPITER

Price Call: BUY

Target Price: 2.92

POS ( 4634 : 2.66 ) : Targeting 2.92

Description

Resistance : 2.92 3.10
Support : 2.60

RSI of 42
RSI is starting to stabilise

STOCHASTIC
It is on a positive divergence

TREND INDICATOR

Comment
With the downside limited to the lower trendline of 2.60, it is likely to head higher to 2.92

Trading Strategy
Buy. Stop loss is at 2.60

Source:Jupiter Securities Research 6 March 2012

Stock Overview - JOHOTIN - 6 Mar 2012

Stock Name: JOHOTIN
Company Name: JOHORE TIN BHD

Research House: JUPITER

Price Call: BUY

Target Price: 1.18

JOHOTIN ( 7167 : 0.955 ) : Targeting 1.18

Description
Tin containers

Resistance : 1.18
Support : 0.91

RSI of 73
RSI is overbought

STOCHASTIC
It is overbought

TREND INDICATOR

Comment
Following the recent consolidation breakout, it is likely to head higher to 1.18. Trading Strategy
Buy. Stop loss is at 0.91

Source:Jupiter Securities Research 6 March 2012

Stock Overview - LATEXX - 6 Mar 2012

Stock Name: LATEXX
Company Name: LATEXX PARTNERS BHD

Research House: JUPITER

Price Call: BUY

Target Price: 1.80

LATEXX ( 7064 : 1.58 ) : Targeting 1.80

Description

Resistance : 1.83
Support : 1.50

RSI of 32
RSI is recovering

STOCHASTIC
It has started to turn upwards

TREND INDICATOR

Comment
The consolidation breakout yesterday, is targeting 1.80.

Trading Strategy
Buy. Stop loss is at 1.50

OSK upgrades Sime's 2012, 2013 forecasts

Stock Name: SIME
Company Name: SIME DARBY BHD

Research House: OSK

Price Call: BUY

Target Price: 9.69

OSK Research Sdn Bhd is raising Sime Darby Bhd's forecast for financial years 2012 and 2013 by 7.2 per cent and 3.2 per cent, respectively, due to stronger industrial segment performance.

The optimistic outlook is based on the acquisition of Bucyrus distribution business by Sime Darby's industrial division in December.

In a research note today, OSK Research also noted that the better-than-expected oil extraction rate at the group's plantation division also contributed to its new forecasts.

The plantation segment raked in earnings before interest and taxes of (EBIT) RM911.1 million for the quarter, bringing its year to date EBIT to RM1.85 billion, it said.

EBIT for the quarter dropped 2.9 per cent, quarter-on-quarter, despite fresh fruit bunch volume falling 5.6 per cent and crude palm oil price by 4.8 per cent, it added.

"This was the second straight quarter that Sime's Indonesian production stumbled, which was not surprising given that parts of Kalimantan had been hit by poor weather since third quarter calendar year 2011.

"We are raising our forecast for the segment by 1.8 per cent for both FY12 and FY13 to factor in a higher oil extraction rate of 21.8 per cent as the company's 21.85 per cent oil extraction rate for the first half came out better than expected," it added.

Given this, the research house is recommending a "buy" call on Sime Darby with a target price of RM9.69. -- Bernama

Media (Neutral NEW) - 2012 to be a quiet year

Stock Name: MEDIA
Company Name: MEDIA PRIMA BHD

Research House: HLG

Price Call: SELL

Target Price: 2.34

Stock Name: STAR
Company Name: STAR PUBLICATIONS (M) BHD

Research House: HLG

Price Call: HOLD

Target Price: 3.27

Stock Name: MEDIAC
Company Name: MEDIA CHINESE INTERNATIONAL LT

Research House: HLG

Price Call: HOLD

Target Price: 1.26

Media (Neutral NEW)

2012 to be a quiet year

Adex growth to moderate' Jan-12 Adexfell by -10.2% YoY, continuing the downwards trend in Adex growth.
We believe that Adex growth will only pick up when there is more clarityon the global macro outlook, which in turn will reinforce confidence inbusinesses to invest in Adex.
Newspaper Adex dominates' The overallAdex market is worth ~RM8.3bn and newspaper medium still commands the lionshare, making up ~53%.
TV Adex is catching up' The nextbiggest Adex market is the FTA TV segment with 36% (~RM3bn) of the total Adexmarket. FTA TV Adex has been gradually increasing its share in the industryover the years because of growing affluence in the population whereby ~90% ofthe ~6.1m Malaysian household owns a TV.
With slowing Adex growth and lack of confidence within the businesscommunity to commit on additional Adex spending, we are NEUTRAL on the sector.
Hence, we initiate coverage on:

Media Prima with aSELL at TP: RM2.34;
Star with a HOLD atTP of RM3.27; and
MCIL with a HOLD atTP of RM1.26

Source: HLIB Research 6 March 2012

Sime Darby (Hold; TP: RM9.82) - Buys into Jimah power plant?

Stock Name: SIME
Company Name: SIME DARBY BHD

Research House: HLG

Price Call: HOLD

Target Price: 9.82

Sime Darby (Hold; TP: RM9.82)

Buys into Jimah power plant?

According to Star Biz, Sime Darby is considering acquiring the 1,400MWcoal-fired Jimah power plant in Port Dickson for more than RM1.1bn. Sime Darbyis currently carrying out a due diligence on the power plant.
Premature to assess the impact on earnings given the lack of informationon Jimah's profitability and source of financing.
While the potential inclusion of Jimah power plant will contributestable earnings and cash flow to Sime Darby, we believe the pricing is criticalin determining whether the deal would be beneficial to Sime Darby.
SOP-derived TP of RM9.82 remains unchanged.

Source: HLIB Research 6 March 2012

Bumi Armada: Buy - The Armada strikes back

Stock Name: ARMADA
Company Name: BUMI ARMADA BERHAD

Research House: MAYBANK

Price Call: BUY

Target Price: 4.88

Initiating coverage with a Buy and RM4.88 target price. Bumi Armada (BA) offers a niche exposure to the Floating Production, Storage and Offloading (FPSO) market. As one of the fastest growing FPSO operators in the world, it has set its sights on being the Top 4 player in terms of FPSO fleet size by 2013. It is also poised to gain traction in Malaysia's O&G sector, as it leverages on PETRONAS' capex programme. BA, which is steadfastly building up franchise values, is a steady growth stock with a 3-year net profit CAGR of 25%.

Maybank Research 6 March 2012

Click here for full report

PERISAI - Visible earnings

Perisai Petroleum; Buy; RM0.93
Price Target: RM1.20 (Prev RM0.85); PPT MK

FY12 to see explosive growth with 100% fleet utilisation. Acquiring a major asset soon. Maintain Buy with higher TP of RM1.20.

Source: HwangDBS Research 6 March 2012

SPSETIA - Hang in there

Stock Name: SPSETIA
Company Name: SP SETIA BHD

Research House: HWANGDBS

Price Call: HOLD

Target Price: 4.50

SP Setia; Hold; RM3.93
Price Target: RM4.50; SPSB MK

The independent advice circular in relation to PNB's MGO has been despatched, advising investors to reject the RM3.95 offer for SPSB's shares as it does not reflect the fundamental value of the company (based on the independent advisor's estimated RNAV of RM5.00). However, investors are advised to accept the warrant offer price of 96 sen as it is deemed reasonable (although not fair) given its limited life (expiring on 21 Jan 2013) and high volatility amidst heightened economic uncertainties.

This concurs with our view that investors should hold on to SPSB's shares for better value (our TP of RM4.50 is based on 10% discount to our RNAV estimate of RM4.97), given improved clarity on management continuity (Tan Sri Liew Kee Sin will remain fully in control for the next 3 years) and strong growth potential. SPSB is on track to achieve its RM4b FY12 sales target (+21% yoy), with RM932m chalked so far for the first 3 months and a brimming launch pipeline. SPSB is still looking for more landbank (including government land redevelopment projects) - leveraging on its strong balance sheet (net cash) & backing from PNB.

The offer has turned unconditional on 2 Mar with PNB and Tan Sri Liew Kee Sin collectively holding 51.6% currently. We understand EPF and KWAP will likely maintain their 13.6% and 5% stakes respectively. PNB intends to maintain SPSB's listing status (potential placement should public spread falls <25%).

Key dates:
22 Feb: Receipt of offer document
2 Mar: MGO turns unconditional
5 Mar: Independent Advice Circular despatched
19 Mar: Closing date of offer

Source: HwangDBS Research 6 March 2012

Sime Darby - Looking to buy Jimah power plant BUY

Stock Name: SIME
Company Name: SIME DARBY BHD

Research House: AMMB

Price Call: BUY

Target Price: 10.60

We reaffirm our BUY rating on Sime Darby (Sime), with ourfair value of RM10.60/share currently under review with an upside bias, pendinga meeting with management.

It has been reported that Sime is looking to acquire the1,400 MW coal-fired Jimah power plant in Port Dickson which is valued at aboveRM1.1bil. The plant is reported to have been up for sale for quite some timeand several parties, including Malakoff, a unit of MMC Corp, had shown interestpreviously. There were also plans by the owner to list the plant although itdid not materialise.

The power plant is owned by Jimah Energy Ventures HoldingsSdn Bhd, of which 70% is owned by the Negeri Sembilan royal family ' underJimah Teknik Sdn Bhd ' and the remaining shareholders are TNB (20%-stake) andJimah O&M Sdn Bhd (10%).

The plant started operations in 2009 and is a thirdgeneration independent power producer with a 25-year concession to supply powerto TNB.

We are not surprised that Sime is looking to acquire powerplants given that it needs to grow its Energy & Utilities (E&U) division,having sold its oil & gas business.We understand talks are at preliminary stage and Sime is currently doing thedue diligence. The group is looking atother power plants within Malaysia as well.

To recap, in 1HFY12, the power unit was the main contributorto E&U's EBIT, accounting for 76% 'albeit there was a one-off recognition of deferred revenue to the tune ofRM99mil during 2QFY12 from the power tariff revision. We estimate E&U tocontribute about 5% and 3% to its revenue and operating profit in FY12F,respectively.

We continue to like Sime as the company is the most liquidproxy to the plantation sector, which accounts for 61% of its FY11's EBIT.Valuations are also attractive, currently trading at CY12F PE of 16x which is belowits 3-year average of 17x.

Source: AmeSecurities

KFC Holdings - What's for dinner? BUY

Stock Name: KFC
Company Name: KFC HOLDINGS (M) BHD

Research House: AMMB

Price Call: BUY

Target Price: 4.15

McDonalds' Malaysia (McD) recently unveiled 'McValue Dinner'combo meals, targeted at dinner crowds. Essentially, 'McValue Dinner' isan extension of McD's long-running 'McValueLunch' promotion.

We note that both promotions offer same discounts of up to36% off the respective standard combo prices. The difference is that the 10selected combo meals are now also available from 6pm-9pm, daily, albeit for alimited time only.

While 'McValue Dinner' is not new, we observed that thepromotion is normally conducted in conjunction with the Hari Raya Puasa period.

We are not too concerned about this latest development.Marketing push by operators via new product launches and value propositions isin line with industry practice, especially during 1H given the lack of majorfestivities.

We expect an insignificant impact on KFC restaurant salesover the long run, though dinner sales volume could soften in the short term.We take comfort that KFC Holdings (KFC) retains a dominant market share of dinnerticket sales among the operators. Dinner sales constitute an estimated 30%-35%of KFC's group turnover.

We are keeping our earnings forecast unchanged, underpinnedby our assumption of 36 additional KFC stores for FY12F. The group openedequivalent new KFC stores across Malaysia, Singapore, Brunei and India lastyear.

Maintain BUY with an unchanged fair value of RM4.15/share,based on a fair PE of 18x FY13F earnings. We like the group's high cashgenerative food business model on the back of an established global brandequity, with stable restaurant sales in Malaysia and exciting growth prospectsin India.

Source: AmeSecurities

LPI (FV RM15.40 - BUY) Company Update: Solid as a Rock

Stock Name: LPI
Company Name: LPI CAPITAL BHD

Research House: CIMB

Price Call: BUY

Target Price: 15.40

We met up with LPI's management recently and came away fromthe meeting confident that the groupwill sustain its earnings momentum moving forward, driven by: (i) higherunderwriting surplus mainly from its non-motor segments, (ii) lower claimsratio, and (iii) stronger agency force. Maintain BUY, with an unchanged FV ofRM15.40, pegged to a 3-year PER of 19.4x.

Solid record. LPI's FY11 results stood strong in spite ofthe challenging and competitive business environment. Management is targetingto grow its gross premiums by some 15%, boosted by: (i) new businesses from strategic partners which are also globalinsurers, (ii) strong growth from its construction-related business, supportedby the rollout of more Economic Transformation Programme (ETP) projects, and(iii) stronger growth in its marine, aviation and transit business, which isgenerally profitable. We understand that management intends to strengthen itsagency force as it believes that it may be able to attract agents from otherinsurance companies given the prevailing uncertainties arising from M&As inthe industry.

MMIP likely to stillsee shortfall in FY12. The overall claims ratio in FY11 shot up to 48.9%from 47.7% y-o-y due to its share of losses incurred in relation to theMalaysian Motor Insurance Pool (MMIP). LPI's share of MMIP losses in FY11amounted to RM11.1m as MMIP had chalkedup a cumulative shortfall over 7 quarters as at end-3Q11. We expect MMIP tocontinue to fall short of funds over the next two years, at an estimatedRM2m'RM3m per quarter. Nonetheless, management is confident of keeping itsclaims ratio below 50% in tandem with its stringent underwriting practices.

Sustainable dividendpayout expected. Generally seen as adividend stock, management has guided that LPI would be able to maintain a100% dividend payout ratio given its high capital adequacy ratio (CAR) that is well above the required 130% set byBank Negara Malaysia. We are confident that this is possible in light of itsstable cash flow outlook and net cash position.

Maintain BUY. Wecontinue to like the group's record in creating shareholder value by consistently delivering robust results and growth. That said, given its relatively high share price, we do not discount thepossibility of the company declaring another bonus issue or share split toreward its shareholders as well as to enhance the stock's liquidity. MaintainBUY, with an unchanged FV of RM15.40, based on its 3-year PER band of 19.4x.

Source: OSK188

VW(rooming) its way in again?

Stock Name: DRBHCOM
Company Name: DRB-HICOM BHD

Research House: CIMB

Price Call: BUY

Target Price: 4.60

Target RM4.60

Implications of a potential Proton-VW tie-up to remodel the Polo as a national car are positive. The price positioning of the car should give Proton and VW the biggest bang for their buck in terms of market share. An equity participation is not a remote idea, in our opinion.

Source: CIMB Research on 6-March-2012

March 5, 2012

Time dotCom (BUY) - Indonesian Venture

Stock Name: TIMECOM
Company Name: TIME DOTCOM BHD

Research House: HLG

Price Call: BUY

Target Price: 0.85

Time dotCom (BUY)

Indonesian Venture

According to Bernama, GTL (TdC's potential acquiree)has entered into an agreement with PT PGAS Telekominikasi Nusantara to providecompetitive and reliable bandwidth connectivity to South-East Asia's most populous country.
GTL CEO shared that 10% of Indonesia'scommunication demand is equivalent to 70% of Malaysia's total demand.
The partnership would bring a total capacity of160Gbps to Indonesia,capable in meeting the demand for high quality data communication requirements.
With this partnership, Indonesiawill be the new addition to its existing Points of Presence portfolio of Malaysia, Hong Kongand US.
Comments: Weacknowledge this news as a very positive milestone in TdC's regional expansionplan, by tapping into one of the market with highest growth (over 30%) in theregion on the back of low mobile and internet penetration rates of 62.7% and1.1% respectively.
Maintain our BUY call with unchanged SOP target priceof RM0.85. If DiGi current share price is considered rather than our TP, SOPwould be enhanced by 11 sen.

Source: HLIB Research 5 March 2012