August 24, 2012

Freight rates remain depressed

Stock Name: MAYBULK
Company Name: MALAYSIAN BULK CARRIERS BHD
Research House: TAPrice Call: SELLTarget Price: 1.24



Maybulk shares fall on poor earnings

Stock Name: MAYBULK
Company Name: MALAYSIAN BULK CARRIERS BHD
Research House: OSKPrice Call: SELLTarget Price: 1.27



KUALA LUMPUR: Shares of Malaysian Bulk Carriers Bhd (Maybulk) dropped as much as 3.77 per cent after the country's second largest shipping firm's second-quarter earnings missed market expectations.

By 11:35 a.m. (0335 GMT), the counter dropped 2.52 per cent to RM1.55 per share with 291,500 shares traded, as compared with an average of 235,423 shares during the past 30 trading days. The broader index shed 0.1 per cent.

"With rates having tumbled 41 per cent year-on-year amid higher charter costs, Maybulk posted a surprise loss of RM1.2 million in the second quarter ended June 30, 2012, which disappointed our and street expectations," OSK Research said in a note on Friday.

Maintaining a 'sell' on the counter, the research house downgraded Maybulk's fair value to RM1.27 per share from RM1.46 previously.

"We expect the outlook to remain challenging and weakness to persist in the immediate term," OSK added. -- Reuters

OSK ups QL Resources fair value

Stock Name: QL
Company Name: QL RESOURCES BHD
Research House: OSKPrice Call: BUYTarget Price: 4.05



KUALA LUMPUR: OSK Research raised its fair value of QL Resources Bhd to RM4.05 per share from RM3.46, citing a brighter outlook due to its Indonesian operations.

"We see stronger contributions arising from expansion of its new surimi line in Surabaya commencing in September, and the poultry operation in Indonesia," OSK said in a note.

"QL, our top buy in the consumer sector, is a relatively safer bet amid the economic uncertainty, owing to its earnings track record and defensiveness," the research house added.

QL shares fell 0.61 per cent by 0331 GMT as the broader market was down. The Malaysian benchmark stock index dropped 0.09 per cent. -- Reuters

RHB raises Kuala Lumpur Kepong's fair value

Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
Research House: RHBPrice Call: BUYTarget Price: 22.40



KUALA LUMPUR: RHB Research raised its fair value of Kuala Lumpur Kepong Bhd to RM22.40 per share from RM20.80, citing better outlook for the plantation firm's refinery operations and its expansion plans in Indonesia.

"We were surprised to learn that KLK is setting up not one, but three refineries and one oleochemical facility in Indonesia," RHB said in a note on Friday.

Though RHB cut its earnings forecast by 2 per cent for the financial year 2012 to reflect flat fresh fruit bunches (FFB) production from KLK's Malaysian estates, it raised 2013 and 2014 growth forecasts by 3.4 per cent and 9.7 per cent, respectively.

The research house kept its 'underperform' rating on the stocks, saying "valuations remain rich in light of falling earnings growth momentum."

As of 0300 GMT, KLK shares remained unchanged at RM23.52 per share while the Malaysian benchmark stock index fell 0.07 per cent. -- Reuters

Affin downgrades Jaya Tiasa to 'add'

Stock Name: JTIASA
Company Name: JAYA TIASA HOLDINGS BHD
Research House: AFFINPrice Call: BUYTarget Price: 2.78



KUALA LUMPUR: Affin Investment Bank downgraded Jaya Tiasa Holdings Bhd to 'add' from 'buy' and cut its target price to RM2.78 per share from RM3.07, after the timber and plantation firm's earnings missed market expectations.

The research house trimmed its net profit forecast for Jaya Tiasa for the financial year ending June 30, 2013, by 6 per cent, citing lower plywood output and higher production costs.

Nonetheless, Affin said it still prefers Jaya Tiasa for exposure to the timber sector, mainly due to the company's less reliance on Japan for a recovery and strong exposure to palm oil production.

By 10:15am (0215 GMT), the counter rose 0.79 per cent to RM2.54, while the broader index dropped 0.02 per cent. -- Reuters

Profits plunged but cushioned by associate

Stock Name: MAYBULK
Company Name: MALAYSIAN BULK CARRIERS BHD
Research House: MIDFPrice Call: HOLDTarget Price: 1.68



Property sales surpasses FY11 full year sales

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD
Research House: MIDFPrice Call: BUYTarget Price: 2.07



Acquiring strategic commercial land in JB

Stock Name: WCT
Company Name: WCT BHD
Research House: MIDFPrice Call: BUYTarget Price: 3.48



TSH - 1HFY12 - Result - Review

Stock Name: TSH
Company Name: TSH RESOURCES BHD
Research House: MIDFPrice Call: HOLDTarget Price: 2.24



Kossan - 2QFY12 Results Review

Stock Name: KOSSAN
Company Name: KOSSAN RUBBER INDUSTRIES BHD
Research House: MIDFPrice Call: BUYTarget Price: 3.71



Paradigm, Welcome to JB!

Stock Name: WCT
Company Name: WCT BHD
Research House: TAPrice Call: BUYTarget Price: 3.67



1QFY13 Earnings Within Estimates

Stock Name: QL
Company Name: QL RESOURCES BHD
Research House: TAPrice Call: HOLDTarget Price: 3.64



When the Going Gets Tough, the Tough Get Going

Stock Name: SUNWAY
Company Name: SUNWAY BERHAD
Research House: TAPrice Call: BUYTarget Price: 3.34



August 23, 2012

Boustead Holdings - 2QFY12 RESULTS - Bowed under the weight of heavy industries

Stock Name: BSTEAD
Company Name: BOUSTEAD HOLDINGS BHD
Research House: CIMBPrice Call: HOLDTarget Price: 5.49



OSK raises MAS to 'buy'

Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: OSKPrice Call: BUYTarget Price: 1.38



OSK Research raised its call on Malaysian Airline System Bhd (MAS) to 'buy' from 'trading buy', citing a brighter outlook for the national carrier as its second-quarter losses narrowed by 72 percent year-on-year.

"While there is still a lot more that needs to be done to bring in consistent profits, we see sentiment turning more positive for the counter as the carrier undergoes a turnaround, slowly but steadily," OSK said in a note on Thursday.

Keeping its fair value at 1.38 ringgit per share, OSK said MAS has successfully trimmed costs across all levels and that arrival of new aircraft will reduce fuel consumption.

As of 3.10pm, Malaysian Airlines shares rose 0.93 percent to 1.08 ringgit against the Malaysian benchmark index's 0.06 percent fall. - Reuters

Double-Digit Earnings Growth Guidance Intact

Stock Name: SUPERMX
Company Name: SUPERMAX CORPORATION BHD
Research House: TAPrice Call: BUYTarget Price: 2.65



Earnings Below Expectations

Stock Name: CENSOF
Company Name: CENSOF HOLDINGS BERHAD
Research House: TAPrice Call: SELLTarget Price: 0.35



Genetec Technology Bhd RR 1Q FY2013

Stock Name: GENETEC
Company Name: GENETEC TECHNOLOGY BERHAD
Research House: WILSON & YORKPrice Call: HOLDTarget Price: 0.23



2QFY12 - Results Update

Stock Name: GRANFLO
Company Name: GRAND-FLO SOLUTION BHD
Research House: NETRESEARCHPrice Call: BUYTarget Price: 0.33



2QFY12 - Results Update

Stock Name: MTOUCHE
Company Name: MTOUCHE TECHNOLOGY BHD
Research House: NETRESEARCHPrice Call: HOLDTarget Price: 0.45



August 22, 2012

Growth Slightly Above Expectations

Stock Name: AFFIN
Company Name: AFFIN HOLDINGS BHD
Research House: TAPrice Call: BUYTarget Price: 4.30



Sarawak Plantation Berhad RR 2Q FY2012

Stock Name: SWKPLNT
Company Name: SARAWAK PLANTATION BHD
Research House: WILSON & YORKPrice Call: BUYTarget Price: 3.30



Affin cuts Ta Ann to 'sell'

Stock Name: TAANN
Company Name: TA ANN HOLDINGS BHD
Research House: AFFINPrice Call: SELLTarget Price: 3.08



Affin Investment Bank downgraded Ta Ann Holdings Bhd to "sell" from "add", and cut its target price to RM3.08 per share from RM5.08 previously, after the timber firm's first-half earnings missed market expectations.

"Given the weaker-than-expected second quarter (ended June 30, 2012) performance, we are cutting our financial year ending Dec 31, 2012 (FY2012) to FY2014 net profit forecast by 20 percent to 32 percent," the research house said in a note on Wednesday.

"At current share price level, the stock is trading at 14.7 times 2013 price-to-earnings ratio (PER), expensive in our view, considering its high risk to earnings, while also trading above its historical average PER of 13 times," Affin added.

Ta Ann reported on Friday a weaker-than-expected first-half net profit of RM24.8 million, a 68 percent drop year-on-year, mainly on lower selling prices and higher cost of production.

By 9.20am (0120 GMT), the counter dropped 1.78 percent to RM4.42 per share, while the broader index rose 0.16 percent. -- REUTERS

Taking a Dip

Stock Name: BSTEAD
Company Name: BOUSTEAD HOLDINGS BHD
Research House: TAPrice Call: BUYTarget Price: 6.35



2Q12 results review

Stock Name: OSK
Company Name: OSK HOLDINGS BHD
Research House: NETRESEARCHPrice Call: HOLDTarget Price: 1.60



1H FY12 Results Exceed Expectations

Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Research House: TAPrice Call: BUYTarget Price: 6.40