May 4, 2012

Kenanga keeps 'outperform' call on MBM

Stock Name: MBMR
Company Name: MBM RESOURCES BHD
Research House: KENANGAPrice Call: BUYTarget Price: 6.57



Kenanga Research raised its target price on MBM Resources Bhd to RM6.57 per share from RM5.38 previously, citing stronger earnings outlook ahead for the Malaysian auto parts maker on the back of its expansion plans.

"We believe in the potential for MBM to grow into a significant auto parts player that would complement its existing manufacturing division," the broker said in a research note on today.

Maintaining an 'outperform' call on couter, Kenanga said MBM offered operational cost efficiency that benefits the entire group in cost savings.

As of 010.11 am, MBM shares rose 1.77 per cent against the Malaysian benchmark stock index that inched up 0.35 per cent. - Reuters

Fajarbaru upgraded to 'outperform' by RHB

Stock Name: FAJAR
Company Name: FAJARBARU BUILDER GRP BHD
Research House: RHBPrice Call: BUYTarget Price: 1.10



RHB Research upgraded Fajarbaru Builder Group Bhd to
'outperform' with a higher fair value of RM1.10 per share following the latter's fifth key construction contract win this fiscal year ending June 30, 2012 (FY2012).

The broker raised Fajarbaru's FY2013-2014 net profit forecasts by 11-15 per cent, having reflected 668 million new jobs in FY2012 as compared with 368 million a year earlier.

"Fajarbaru's valuations have become attractive after the latest earnings upgrade," RHB said in a research note today.

The company announced on Thursday it secured a 299.8 million contract to construct and commission the depot and power substation for the Malaysia's Ampang light rail transit extension project.

By 9.27am, Fajarbaru's shares climbed 0.53 per cent, outperforming the Malaysia's benchmark stock index that rose 0.22 per cent. - Reuters


May 3, 2012

9MFY12 Results Update

Stock Name: REDTONE
Company Name: REDTONE INTERNATIONAL BHD
Research House: NETRESEARCHPrice Call: HOLDTarget Price: 0.26



RHB upgrades UMW to 'outperform'

Stock Name: UMW
Company Name: UMW HOLDINGS BHD
Research House: RHBPrice Call: BUYTarget Price: 9.40



RHB Research upgraded UMW Holdings Bhd to 'outperform' with a higher fair value of RM9.40 per share from RM7.30 previously, citing improving outlook for the auto-to-oil and gas conglomerate going forward.

"We expect UMW first quarter earnings to be respectable that will likely prompt an upgrade in consensus estimates," the broker said in a research note today.

RHB added that the Syariah compliant counter was expected to be well supported by a reasonably attractive dividend yield.
UMW's dividend payout policy was 50 percent of recurring net profit.

"Given the strong earnings recovery forecast for 2012, a 50 per cent payout for 2012 implies a gross dividend per share of 39 sen (4.9 per cent gross yield) offering a healthy absolute year on year increase," the broker said.

By 9.53am, UMW shares remained flat at RM7.93, outperforming the Malaysian benchmark stock index that shed 0.12 per cent. - Reuters

TA raises Unisem's target price

Stock Name: UNISEM
Company Name: UNISEM (M) BHD
Research House: TAPrice Call: BUYTarget Price: 2.15



TA Securities upped its target price for Malaysian semiconductor packaging and test services provider Unisem (M) Bhd to RM2.15 per share from RM1.10 previously, citing bullish sales outlook in the semiconductor industry.

"We project sales to pick up significantly from the second quarter of this year onwards, to be in line with the improvement in global chip sales," the broker said in a research note today.

TA added that global chip sales, which has normalised since January, pointed to a sustainable recovery in the semiconductor industry.

The broker said Unisem's operating expenses are also expected to drop after the group implemented several cost-cutting measures in 2011.

As of 9.54 am, shares in Unisem dropped 2.05 per cent, underperforming the Malaysian benchmark stock index that dropped 0.12 per cent. - Reuters

May 2, 2012

TA maintains 'buy' on Pantech

Stock Name: PANTECH
Company Name: PANTECH GROUP HOLDINGS BHD
Research House: TAPrice Call: BUYTarget Price: 0.70



TA Research maintained "buy" on steel fittings firm Pantech Group Holdings Bhd with a target price of 70 sen, citing improving business outlook despite fiscal year ending Feb 29 (FY2012)'s earnings came below consensus expectations.

"The company's carbon steel division has orders until end of this calendar year and is currently ramping up capacity to meet rising demand, especially from the oil and gas sector," the broker said in a research note on Wednesday.

TA said Pantech can capitalise on its unit Nautic Steel Ltd's strength in milling, machining and welding of tube and pipe fittings in special metals with so much investments planned by the oil majors for the domestic oil and gas sector.

By 949 am, Pantech shares rose 5.77 percent, outperforming the Malaysia's benchmark stock index that climbed 0.32 percent. -- Reuters

April 30, 2012

APM Automotive Holdings Initiation Rpt Apr 2012

Stock Name: APM
Company Name: APM AUTOMOTIVE HOLDINGS BHD
Research House: WILSON & YORKPrice Call: BUYTarget Price: 6.00



Daibochi cut to 'underperform'

Stock Name: DAIBOCI
Company Name: DAIBOCHI PLASTIC & PACKAGING
Research House: RHBPrice Call: SELLTarget Price: 2.78



RHB Research downgraded Daibochi Plastic and Packaging Industry Bhd to "underperform" from "market perform", citing cautious industry outlook for the flexible packaging firm going forward.

"We remain conservative on the outlook for the flexible packaging industry as there could still be earnings risk due to the volatility of raw material prices that could have an impact on margins," the broker said in a research note on Monday.

Maintaining fair value of RM2.78 per share on Daibochi, RHB said the downgrade was also due to the recent run-up in the counter's share price, which had climbed 6.1 percent year to date.
-- Reuters

Bintulu Port Holdings Bhd - INITIATING COVERAGE - Buoyed by a high Score

Stock Name: BIPORT
Company Name: BINTULU PORT HOLDINGS BHD
Research House: CIMBPrice Call: HOLDTarget Price: 7.30



Some Value Emerging

Stock Name: EPMB
Company Name: EP MANUFACTURING BHD
Research House: TAPrice Call: HOLDTarget Price: 0.89