Target prices for media firms cut

Stock Name: MEDIA
Company Name: MEDIA PRIMA BHD

Research House: KENANGA

Price Call: HOLD

Target Price: 2.40

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

Research House: KENANGA

Price Call: HOLD

Target Price: 3.28

Stock Name: MEDIAC
Company Name: MEDIA CHINESE INTERNATIONAL LT

Research House: KENANGA

Price Call: HOLD

Target Price: 1.33

Kenanga Research cut target prices for Malaysian media companies including Star Publications Bhd and Media Prima Bhd on expectations the weaker ringgit against the US dollar could crimp future earnings.

The research house kept a "neutral" call on the Malaysian media sector on firm gross advertising expenditure.

But it cut target prices for Media Prima Bhd to RM2.40 (US$0.76) per share from RM2.62 and Star Publications Bhd to RM3.28 from RM3.40.

Kenanga also cut its target price for Media Chinese International Ltd to RM1.33 per share from RM1.36. -- Reuters

Maybank raises SP Setia target price

Stock Name: SPSETIA
Company Name: SP SETIA BHD

Research House: MAYBANK

Price Call: BUY

Target Price: 4.10

Maybank Investment raised its target price on SP Setia to RM4.10 (US$1.29) per share from RM4.00 as the property developer was on track to meet its RM4 billion sales target and netted strong profits.

Maybank said in a note that SP Setia's year-to-date locked in sales hit RM2.1 billion in the second half of the financial year. -- Reuters

Hwang DBS raises UMW Hldgs target price

Stock Name: UMW
Company Name: UMW HOLDINGS BHD

Research House: HWANGDBS

Price Call: BUY

Target Price: 10.15

Hwang DBS raised its target price of auto-to-oil and gas conglomerate UMW Holdings Bhd to RM10.15 (US$3.22) per share from RM9.65 on strong earnings from its oil and gas division.

Hwang DBS also said Myanmar's political and economic reforms will help UMW's plans to expand into the country's construction and mining sector.

As of 0246 GMT, UMW's shares rose 0.79 per cent against the Malaysian benchmark stock index's 0.18 drop. -- Reuters
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TA cuts Glomac's target price

Stock Name: GLOMAC
Company Name: GLOMAC BHD

Research House: TA

Price Call: SELL

Target Price: 0.98

TA Securities cut its target price of property developer Glomac Bhd to RM0.98 (US$0.31) per share from RM1.10 due to sales slowdown seen next year.

The research house said in note Glomac's sales momentum in FY2013 is expected to normalise after strong growth in FY 2012 as it faces delays in rolling out new townships.

TA Securities still kept its buy call on the stock but said it had cut its FY2013-2014 earnings forecast by 14-16 percent to factor in the changes in Glomac's future earnings and cash flow projections. -- Reuters

Slower Property Launch but Impact Minimal

Stock Name: NAIM
Company Name: NAIM HOLDINGS BHD

Research House: TA

Price Call: BUY

Target Price: 2.83

3QFY12: Topping expectation

Stock Name: TOPGLOV
Company Name: TOP GLOVE CORPORATION BHD

Research House: ALLIANCE

Price Call: BUY

Target Price: 5.15

Two More Lines Coming Right Up

Stock Name: SCIENTX
Company Name: SCIENTEX INCORPORATED BHD

Research House: TA

Price Call: BUY

Target Price: 3.05

Nestle Malaysia lifted to 'hold'

Stock Name: NESTLE
Company Name: NESTLE (M) BHD

Research House: MAYBANK

Price Call: HOLD

Target Price: 54.20

Maybank Research raised its call on food manufacturer Nestle Malaysia Bhd to "hold" from "sell" on the back of a stronger earnings and exports outlook.

"Nestle's ongoing heavy capex is supporting the group's earnings momentum, particularly with an upcoming plant which should provide additional capacity," Maybank said in a note.

Maybank raised its 2013-2014 earnings forecast by 2-3 percent due to stronger export projections and after Nestle reported a 10 percent export sales growth in the first quarter of 2012.

"While more than 50 percent of Nestle's exports are to ASEAN countries, there is still much potential outside ASEAN given that Nestle Malaysia is being positioned as the halal food hub for the Nestle group," Maybank said, referring to the Association of Southeast Asian Nations.

Maybank also revised its target price upwards to RM54.20 (US$17.17) per share from RM52.40 earlier. As of 9.25 am, Nestle shares rose 0.32 percent against the Malaysian benchmark stock index's 0.06 percent gain. -- Reuters

Major expansion plan in the Henan Province

Stock Name: MAXWELL
Company Name: MAXWELL INT HOLDINGS BERHAD

Research House: ZJ

Price Call: BUY

Target Price: 0.58

The Indonesian Connection

Stock Name: TENAGA
Company Name: TENAGA NASIONAL BHD

Research House: TA

Price Call: BUY

Target Price: 7.70

Positive Dividend Surprise

Stock Name: BJTOTO
Company Name: BERJAYA SPORTS TOTO BHD

Research House: TA

Price Call: BUY

Target Price: 5.05

Maybank Research: Kosan Rubber a 'buy'

Maybank Research raised its call on rubber manufacturer Kossan Rubber Industries Bhd to 'buy' from 'hold' on the back of declining latex costs and a stronger US dollar.

"Kossan's current latex:nitrile sales mix is 62:38 and it should benefit from the downtrend in key input costs," Maybank said in a note today.

"Additionally, earnings should also improve on a stronger US dollar as the bulk of its sales receipts are based in US dollar," Maybank added.

Maybank said Kossan's capacity expansion plans for its nitrile and surgical gloves would boost second half 2012 and 2013 earnings.

Raising the target price to RM3.75 (US$1.19) per share from RM3.50, Maybank kept its 2013-2014 earnings per share forecasts but trimmed 2012 forecasts by 4 per cent to factor in start-up costs from Kossan's glove factory in China. -- Reuters

RHB raises MRCB to 'trading buy'

Stock Name: MRCB
Company Name: MALAYSIAN RESOURCES CORP

Research House: RHB

Price Call: TRADING BUY

Target Price: 2.02

RHB Research raised its call on builder Malaysian Resources Corporation Bhd (MRCB) to "trading buy" from "market perform" on the back of stronger profits.

"MRCB's near-term earnings visibility is good on the back of strong construction profits underpinned by successful variation order claims," said RHB in a note on Monday.

RHB said risks include contracts coming in below target, rising costs and further delays in developing the country's Rubber Research Institute, where MRCB is eyeing a RM1 billion (US$316.51 million) infrastructure deal.

Ahead of the Malaysia's general elections, RHB expects the share price performance of construction stocks to be capped due to higher risk premiums.

"We are not overly enthusiastic on construction stocks as we believe their share price performance is likely to be capped over the next 6-9 months as the market continues to demand a higher risk premium ahead of the general elections," RHB said.

"Nonetheless, we now see value in MRCB after a steep decline in share price," RHB added.

RHB raised its fair value price to RM2.02 from RM1.83. -- Reuters

Positioned for longer-term growth

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD

Research House: ALLIANCE

Price Call: BUY

Target Price: 6.00