Research firms mantains 'buy' call on WCT

Stock Name: WCT
Company Name: WCT BHD

Research House: OSK

Price Call: BUY

Target Price: 3.05

Three research houses -- OSK Research Sdn Bhd, AmResearch Sdn Bhd and Hong Leong Investment Bank research division (HLIB
Research) -- have recommended a 'buy' call on WCT Bhd.

OSK Research said it remained positive on WCT's long-term earnings given its sturdy outstanding orderbook of over RM2.5 billion as well as potential jobs flow for the remainder of the year.

"We expect the group to secure more contracts by year-end, with potential infrastructure jobs in Oman and the United Arab Emirates," it said in a note today.

The opening of KLIA2, scheduled in April 2013, may prove to be re-rating catalyst, it said.

OSK Research maintained its 'buy' call with the fair value reduced to RM3.06 from RM3.10 previously.

AmResearch said WCT's construction earnings before interest and taxes fell 19 per cent year-on-year in first half of financial year 2012 following a void left for some key Middle East jobs that were completed last year.

"But, sequential earnings momentum should pick up in the coming quarters as the impact of recently-secured local jobs begin to filter through.

AmResearch has maintained its 'buy' call with an unchanged fair value of RM3.05.

Meanwhile, HLIB Research said the positive factors for the 'buy' call were major contract wins, growing property investment income and strategic land banking exercise. It has maintained the target price at RM3.36. -- Bernama

AmResearch re-affirms 'buy' call on APM

AmResearch has re-affirmed its "buy" call on automotive component manufacturer, APM Automotive Holdings Bhd, on the
expectation of higher car sales in the second half of this year and the introduction of a new model by Nissan. It also maintained APM's fair value at RM6.50 a share.

The research house said a key issue in the second quarter financial year 2012 was the contraction in production, particularly at Perodua and Proton, which collectively accounted for 63 per cent in the first half of this year's total industry production.

It said the contraction was due to initial production hiccups for Proton Preve and DRB-Hicom's decision to downsize Proton's inventory upon acquisition in March while Perodua underwent a week-long plant maintenance during the period.

"We expect production to catch up with strong sales in the second half of this year, given the sustained demand visibility and normalisation of channel inventories," it said in a research note today.

AmResearch said the introduction of Nissan Almera, expected in the fourth quarter of this year, would provide a significant boost for APM in the period given that Nissan was targeting 10,000 booking bank ahead of the official launch.

"Furthermore, given its status as a sister company, APM derives up to 40 per cent higher revenue per car set from Nissan compared to supplies to a key customer like Proton on our estimates," it added. -- Bernama

1HFY12 Result Review - Banking on property

Stock Name: WCT
Company Name: WCT BHD

Research House: BIMB

Price Call: BUY

Target Price: 2.86

Higher property sales offset weak construction profit

Stock Name: WCT
Company Name: WCT BHD

Research House: MIDF

Price Call: BUY

Target Price: 3.48

Below expectations but expect improvement in 2H12

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

Research House: MIDF

Price Call: HOLD

Target Price: 4.70

Consumer banking and markets division drove PBT higher in 1HFY12

Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD

Research House: MIDF

Price Call: HOLD

Target Price: 8.20

Minimal impact from adoption of MFRS139

Stock Name: AFG
Company Name: ALLIANCE FINANCIAL GROUP BHD

Research House: MIDF

Price Call: HOLD

Target Price: 4.20

A Cheaper Proxy for Healthcare Stocks

Stock Name: YSPSAH
Company Name: Y.S.P.SOUTHEAST ASIA HOLDING

Research House: TA

Price Call: BUY

Target Price: 1.34

Less hurt by material prices

Stock Name: PANAMY
Company Name: PANASONIC MANUFACTURING MSIA

Research House: MIDF

Price Call: HOLD

Target Price: 21.62

Earnings Buoyed by Gains on Disposal

Stock Name: PETGAS
Company Name: PETRONAS GAS BHD

Research House: MIDF

Price Call: HOLD

Target Price: 17.72

Operating Environment Remains Tough

Stock Name: JADI
Company Name: JADI IMAGING HOLDINGS BHD

Research House: TA

Price Call: SELL

Target Price: 0.11

A strong showing but priced-in

Stock Name: DELEUM
Company Name: DELEUM BHD

Research House: ALLIANCE

Price Call: HOLD

Target Price: 1.93

Another rock-steady quarter

Stock Name: PERISAI
Company Name: PERISAI PETROLEUM TEKNOLOGI

Research House: TA

Price Call: BUY

Target Price: 1.26

MAS - Bleeding has eased

Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD

Research House: MIDF

Price Call: HOLD

Target Price: 1.16

AMMB - Expect credit cost to normalise in subsequent quarters

Stock Name: AMBANK
Company Name: AMMB HOLDINGS BHD

Research House: MIDF

Price Call: HOLD

Target Price: 6.60

Media Prima - Football saves the show

Stock Name: MEDIA
Company Name: MEDIA PRIMA BHD

Research House: MIDF

Price Call: HOLD

Target Price: 2.55

TRC - "T"hree "R"ailway "C"ontracts in hand

Stock Name: TRC
Company Name: TRC SYNERGY BHD

Research House: TA

Price Call: BUY

Target Price: 0.77

Gaining traction

Stock Name: MEDIA
Company Name: MEDIA PRIMA BHD

Research House: TA

Price Call: BUY

Target Price: 2.86

Benefiting from softening fuel prices

Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD

Research House: TA

Price Call: HOLD

Target Price: 1.23

To Remain Resilient Amid External Uncertainties

Stock Name: IJM
Company Name: IJM CORPORATION BHD

Research House: TA

Price Call: HOLD

Target Price: 5.77

On Track to Achieve MTAs

Stock Name: AMBANK
Company Name: AMMB HOLDINGS BHD

Research House: TA

Price Call: HOLD

Target Price: 7.20

Earnings on Track

Stock Name: AMEDIA
Company Name: ASIA MEDIA GROUP BERHAD

Research House: TA

Price Call: SELL

Target Price: 0.653

MIDF sees boost for Hirotako earnings

MIDF Research expects MBM Resource's (MBM) automotive safety equipment manufacturing arm, Hirotako Holdings Bhd, to contribute 24 per cent to MBM's pre-tax profit in 2013.

It said production in Hirotako was expected to increase for both Perodua and Proton ahead of the festive seasons coupled by the additional airbag volume orders.

"This is in compliance with the airbag policy which took effect on July 1, 2012.

"Hence, Hirotako's overall production volume and earnings are expected to be boosted in the second half of the year," MIDF said in its research note.

Both national car makers are Hirotako's biggest customers.

It said a depressed earnings contribution from Hirotako was mainly due to the drop in Proton's production volume by 18.6 per cent, year-on-year, in the second half of the year.

On other developments, MIDF believed MBM would continue expanding its distributorship network for Federal Auto going forward, which has already been aggressively growing its market share.

It said Federal Auto expected a higher sales volume as Volkswagen continued to grow its presence with additional Volkswagen dealerships in Alor Setar and Johor Baharu, and there would be two upcoming new launches soon, both of which are expected to see encouraging demand.

The research house maintained a "buy" call on MBM's shares with a target price of RM4.53.-- BERNAMA

Affin Invt cuts MSM Malaysia to 'reduce'

Stock Name: MSM
Company Name: MSM MALAYSIA HOLDINGS BERHAD

Research House: AFFIN

Price Call: SELL

Target Price: 5.10

Affin Investment Bank downgraded its rating on sugar producer MSM Malaysia Holdings Bhd to "reduce" from "add" as the company's results for the half-year period fell short of expectations.

MSM's core net profit for the first six months of 2012 was RM115.2 million, 17.2 percent below Affin's expectations.

Affin lowered its target price for MSM by 20 sen to RM5.10 per share, the research house said in a report on Tuesday.

Despite the downgrade, Affin expects the company to post stronger earnings in the second half as demand for sugar increases with the upcoming festive season and margins for MSM improve.

As of 10.57am, the stock dropped 0.05 percent against the Malaysian benchmark stock index's 0.92 percent rise. -- Reuters

Felda Global cut to 'neutral'

Stock Name: FGV
Company Name: FELDA GLOBAL VENTURES HLDG BHD

Research House: PUBLIC BANK

Price Call: HOLD

Target Price: 5.44

Public Investment Bank cut its rating on plantation operator Felda Global Ventures Holdings Bhd to "neutral" from "outperform" after its sugar unit posted disappointing first-half earnings.

MSM Malaysia Holdings Bhd which is 51 percent-owned by Felda Global, posted lower year-on-year earnings due to slumping sales for both its domestic and export markets despite recording a higher average price during the quarter, Public Investment Bank said in a note.

The research house kept Felda Global's target price at RM5.44 per share, adding that there was no "significant re-rating catalysts in sight" for the group.

As of 10.37 am, shares in Felda Global dropped 0.2 percent against the Malaysian benchmark stock index's 0.04 percent rise. -- Reuters

HwangDBS keeps 'buy' call on Coastal

The RM141 million vessel sales contracts bagged by Coastal Group is a positive turn for the shipbuilder, says HwangDBS.

It secured the contracts in the midst of a drought in orders during the first half of this year following increasingly negative sentiment in global markets and depressing oil and gas investments, it said.

In its research note, HwangDBS however said net margins on vessels would likely hover between 15 per cent and and 20 per cent, given a persistent buyer's market.

"We think orders will continue to trickle in, underpinned by demand for replacement of aging offshore support vessels and strong investment support from Petronas," it said.

The research house said Coastal still had a solid net cash position ensuring minimal debt issues, and was in the midst of moving up the value chain to build higher margin vessels -- subsea vessels worth US$100 million.

Accordingly, it maintained a 'Buy' call for the company's shares at a price target of RM2.35.

Coastal announced Monday that it secured RM141 million worth of vessel sales contracts comprising one 300 men accommodation work barge, one anchor handling tug supply (AHTS) and two tug boats.

Except for the AHTS, which is for a repeat customer, the rest of the vessels are being sold to new customers from Singapore.

"This brings year to date order wins to RM587 million and an accompanying outstanding order book of RM711 million, which will sustain earnings till 2013," said HwangDBS.

The vessels are expected to be delivered this year and in 2013.
As at 10.00am, it shares stood at RM1.90, up six sen.
-- BERNAMA

MBMR - Revving up sales

Stock Name: MBMR
Company Name: MBM RESOURCES BHD

Research House: MIDF

Price Call: BUY

Target Price: 4.53

Dialog - Ending the Year on High

Stock Name: DIALOG
Company Name: DIALOG GROUP BHD

Research House: MIDF

Price Call: BUY

Target Price: 2.80

Axiata - Growth expected to be modest

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD

Research House: MIDF

Price Call: HOLD

Target Price: 6.00

Alam Maritim - 2QFY12 RESULTS - Sailing into the wind

Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD

Research House: CIMB

Price Call: BUY

Target Price: 1.26

A long-term play

Stock Name: DIALOG
Company Name: DIALOG GROUP BHD

Research House: BIMB

Price Call: BUY

Target Price: 2.70

Coping With The Change in Competitive Landscape

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

Research House: TA

Price Call: HOLD

Target Price: 1.35

GenS 1H12 Results Below Expectations

Stock Name: GENTING
Company Name: GENTING BHD

Research House: TA

Price Call: BUY

Target Price: 11.15

Winston and Mild Seven, the Current Focus

Stock Name: JTINTER
Company Name: JT INTERNATIONAL BHD

Research House: TA

Price Call: SELL

Target Price: 7.10

Hektar REIT - 2QFY12 RESULTS - Healthy rental reversion

Stock Name: HEKTAR
Company Name: HEKTAR REITS

Research House: CIMB

Price Call: BUY

Target Price: 1.65