July 6, 2012

Growing Its In-house Content

Stock Name: MEDIA
Research House: TAPrice Call: BUYTarget Price: 2.86

Multi-Purpose target price lifted to RM4.20

HwangDBS Vickers Research raised Multi-Purpose Holdings Bhd's (MPHB) target price to 4.20 ringgit per share from 3.85 ringgit previously, citing attractive valuations after the demerger of the company's gaming and non-gaming businesses.

"Excluding non-gaming businesses, MPHB's numbers forecast operator (NFO) business is only trading at 8.9 times 2013 forward price-to-earnings ratio (PER) versus Berjaya Sports Toto Bhd 's 13.5 times," the research house said in a note on Friday.

HwangDBS said transferring Berjaya Sports Toto's gaming operations to a business trust to be listed in Singapore may see investors switching to the only listed direct NFO player left in Malaysia - MPHB - which may even command a scarcity premium.

MPHB recently announced plans to transfer its non-gaming business that spans from insurance to property development into an entity to be offered for sale to MPHB's shareholders, leaving the company as a pure gaming company.

By 1033 am (0233 GMT), the counter shed 0.29 percent to 3.46 ringgit per share, underperforming the broader index's 0.06 percent rise. -- Reuters

SP setia target price raised to RM4.60

Stock Name: SPSETIA
Company Name: SP SETIA BHD
Research House: TAPrice Call: BUYTarget Price: 4.60

TA Securities raised its target price for property developer SP Setia Bhd to 4.60 ringgit from 4.45 ringgit after taking into account the property developer's share of project from the development of Battersea Power Station site in London.
SP Setia and Sime Darby announced on Thursday they will each have a 40 percent stake of the recently acquired Battersea Project Holding Company Ltd with Malaysia's Employee Provident Fund taking the remaining.
"We like this development which comes with planning permission that allows immediate launch of project," the research house said in a note on Friday.
"Most importantly, we understand from management that this development will have no significant impact on SP Setia's operations in Malaysia and the emerging markets in term of new property launch and landbanking exercise," it added.
TA maintained 'buy' on the counter. By 1030am (0230 GMT), shares in SP Setia climbed 0.81 percent to 3.73 ringgit, outperforming the broader market's 0.07 percent rise.

MIDF Research: Malaysia Marine a 'buy'

Stock Name: MHB
Research House: MIDFPrice Call: BUYTarget Price: 5.97

MIDF Research upgraded Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) to 'buy' with a higher target price of RM5.97 (US$1.89)per share on potential projects wins for the rest of this year.

"We are confident that the second half of 2012 would be a more invigorating part of the year for the (oil and gas service engineering) firm with about RM1.5-RM2 billion worth of potential works to be won," the research house said in a note today.

MMHE has already secured around RM2.1-2.4 billion worth of jobs, according to MIDF.

"Management noted that moving forward, MMHE will continue to stay true to its fabrication business roots," said the research house.

"They did not discount the fact that they are always on the lookout for potential mergers and acquisitions but it will be synergistic and not to diversify its business," it added.

By 0947 (0148 GMT), the counter was flat at RM5.30 per share, underperforming the Malaysia's benchmark stock index's 0.18 per cent rise. -- Reuters

July 5, 2012

Next Stop... London!

Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: TAPrice Call: BUYTarget Price: 11.92

July 4, 2012

On a Solid Path

Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: TAPrice Call: BUYTarget Price: 11.38

Fair value of semiconductor firms raised

Stock Name: UNISEM
Company Name: UNISEM (M) BHD
Research House: RHBPrice Call: BUYTarget Price: 1.90

Stock Name: MPI
Research House: RHBPrice Call: BUYTarget Price: 4.21

Stock Name: NOTION
Research House: RHBPrice Call: BUYTarget Price: 1.51

RHB Research kept its call on the Malaysian semiconductor industry at "overweight" due to the third consecutive month of rising global chip sales and forecasts of stronger demand in the second half of 2012.

RHB said it saw a gradual semiconductor sector recovery, driven by strong consumer and corporate information technology spending.

The research house raised the fair value of companies such as Unisem M Bhd, Malaysian Pacific Industries Bhd (MPI), and Notion Vtec Bhd.

RHB raised Unisem's fair value to RM1.90 per share from RM1.84 previously, MPI to RM4.12 per share from RM4.09 and Notion Vtec to RM1.51 per share from RM1.31.

All three semiconductor stocks are all rated as "outperform"
by the research house. -- Reuters

July 3, 2012

RHB lifts Genting Plant target price

Stock Name: GENP
Research House: RHBPrice Call: HOLDTarget Price: 9.40

RHB Research raised its target price for Malaysian palm oil firm Genting Plantations to RM9.40 (US$2.97) from RM9.00 based on expected increases in property sales by 10 percent on year and improved production from its estates.

RHB said in a note to clients the impact of the drought on oil palm estates should end by mid-year, signalling a positive outlook for the second half of 2012.

Indonesian palm oil operations have also bolstered Genting Plantations' favourable stock price as its 12,000 hectare estate in Kalimantan province matures in 2013 and the possibility of setting up a new local refinery.

RHB kept its call on Genting Plantions at "market perform." -- Reuters

July 2, 2012

QL Resources rated 'outperform'

Stock Name: QL
Research House: PUBLIC BANKPrice Call: BUYTarget Price: 3.83

Public Investment Research started agricultural producer QL Resources Bhd with an "outperform" call and a fair value of RM3.83 thanks to its strong agricultural business and aggressive expansion plans.

"We like QL for its strong play in its three agricultural segments - marine products manufacturing, integrated livestock farming and palm oil activities," the broker said in a note.

The research house said QL's expansion plans to Indonesia and Vietnam in its marine products and livestock segments will boost its earnings momentum.

At 0207, QL shares gained 0.96 percent against the Malaysian benchmark stock index 0.33 percent rise. -- Reuters

NCIP remains key contributor to sales

Stock Name: CRESNDO
Research House: TAPrice Call: BUYTarget Price: 2.53

Minimal impact from APH

Stock Name: CIMB
Research House: ALLIANCEPrice Call: BUYTarget Price: 8.47

1QFYJan13 results review

Stock Name: TA
Research House: NETRESEARCHPrice Call: HOLDTarget Price: 0.60