June 8, 2012

MIDF ups Konsortium to 'buy'

Stock Name: KONSORT
Research House: MIDFPrice Call: BUYTarget Price: 1.22

MIDF Research upped Malaysia's logistics services provider Konsortium Logistics Berhad to 'buy' from 'neutral' after the firm won several contracts from multinational corporations and secured a delayed coal shipment deal.

"We view positively its progress of securing more logistics contracts. We believe that this will be a long term earnings catalyst," MIDF said in a research note.

MIDF said Konsortium's haulage division had a stronger-than-expected performance with its Q1 haulage revenue increasing 15 percent year-on-year, despite the recent trouble in the industry due to higher depot charges and worsening depot conditions.

MIDF raised its FY2012 and FY2013 earnings forecasts by 29.1 percent and 9.3 percent, and raised its target price to 1.22 ringgit ($0.39) per share from 1.10 ringgit.

As of 0310 GMT, Konsortium's shares dropped 2.56 percent on the Malaysian benchmark stock index which fell 0.27 percent. - Reuters

June 6, 2012

Kenanga Research: "Outperform" call on TSH

Stock Name: TSH
Research House: KENANGAPrice Call: BUYTarget Price: 2.50

Kenanga Research started Malaysian plantation firm TSH Resources Bhd with an outperform call on expectations of strong palm oil output growth and higher production efficiency.

Kenanga pegged a target price of RM2.50 (US$0.78) per share on the plantation firm, which it called one of Malaysia's most efficient planters.

It also said it positive on TSH's steady FY2012-2013 fresh fruit bunch growth of 19-25 per cent. The company has yet to utilise 69 per cent of its total plantation land, according to Kenanga.

"TSH's key earnings catalysts are better than expected crude palm oil prices and higher than expected fresh fruit bunch growth," said Kenanga in a research note to clients.

Kenanga said immediate risks faced by TSH include a sustained drop in crude palm oil prices and unexpected hikes in fertiliser and labour costs. -- Reuters

June 4, 2012

TA raises Glomac's target price

Stock Name: GLOMAC
Company Name: GLOMAC BHD
Research House: TAPrice Call: BUYTarget Price: 1.10

TA Research raised the target price of Glomac Bhd to RM1.10 per share from RM1.08 as it viewed positively the property developer's move to expand its landbank in Sepang, the southern part of Selangor state.

"Given the rising property prices and land scarcity in the first tier locations in the Klang Valley, we expect property demand to be decentralized from the first tier locations to areas like Cyberjaya, Kajang, Puchong and Seri Kembangan," TA said in a research note on Monday.

Glomac announced on Friday it was buying a piece of agricultural land in Sepang measuring 191.75 acres for RM66.8 million. It said it intended to develop the land into a mixed residential property.

Maintaining a "buy" on Glomac, TA said it raised the property developer's financial year ending April 30, 2014 (FY2014) earnings by 2.9 percent, as it expected the progress billing from the project to begin in that financial period.

By 10.38am, Glomac shares were down 1.78 percent, in line with the Malaysian benchmark stock index's 1 percent fall. - Reuters

HLIB: Glomac land buy part of key strategy

Stock Name: GLOMAC
Company Name: GLOMAC BHD
Research House: HLGPrice Call: HOLDTarget Price: 0.87

Hong Leong Investment Bank Research has described the land acquisition by Glomac Bhd as a continuation of its key strategy to acquire sizeable tracts of land in the outskirts of Klang Valley.

The company acquired 77.59 hectares of agricultural land in Dengkil, Selangor, from Lee Chin Cheng Dengkil Oil Palm Plantations Sdn Bhd for RM66.589 million.

The research house said the land's exact mix and gross development value was yet to be determined but it expected Glomac to roll out affordable housing projects.

"However we do not expect any launches before 2014 due to Glomac's ample land bank in Puchong and Kuala Selangor.

"And, the low acquisition price of only RM8 per square feet removes the urgency for a quick turnaround launch," it added. -- Bernama

Following the land acquisition, the research firm maintained a "hold" call on Glomac Bhd with an unchanged target price of 87 sen. -- BERNAMA