September 7, 2012

Bonus issue and free warrants to reward shareholders

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

OSK keeps 'buy' call on MBSB

Stock Name: MBSB
Research House: OSKPrice Call: BUYTarget Price: 3.02

OSK Investment Banking raised its fair value estimate for Malaysia Building Society Bhd shares to RM3.02 from RM2.70
as the financial services firm renews focus on driving fee-based income.

"The growth drivers are expected to be bancassurance tie-ups with several insurance players, as well as the kick-start of a foreign currency transfer business under Western Union," it said in a research note on Friday.

OSK maintained its "buy" call on the firm and added that the firm is also focused on maintaining the aggressive loans growth it showed in the past two quarters.

"We believe MBSB will repeat the fund-raising exercises carried out in 2011," OSK said.

At 10.14am Malaysia Building Society was up 0.89 per cent at RM2.27 per share while the Malaysia's benchmark composite index was up 0.01 per cent at 1618.18. - Reuters

September 6, 2012

HwangDBS keeps 'hold' call on FGVH

Felda Global Ventures Holdings Bhd (FGVH), which is in net cash position, plans to undertake aggressive expansion, especially to acquire plantation land bank, a research house said.

HwangDBS Vickers Research said FGV's improving operational efficiency should also help to propel growth, given its large fresh fruit bunch base.

"FGV intends to raise its sugar output and storage capacity, as well as to expand downstream via strategic overseas partnerships," it said in a research note said.

The research house has maintained a "hold" call on FGV's shares of RM4.85.

As at 11.55am, the stock slipped 1.24 per cent to RM4.79.

"At the current price FGV offers limited upside to our discounted cash flow-based target price of RM5.05, which implies 18 times financial year 2013 price earnings ratio.

"However, we like the counter for its steady cash flow and 50 per cent dividend payout policy, which implies a decent 3.9 per cent yield," HwangDBS said.

Meanwhile, FGV's 99-year land lease agreement for 355,864 hectares of plantation land from Felda positions the group as the world's third largest oil palm planter, the research house said.

It said 83 per cent of FGV's land area is mature with the remainder expected to progressively come to maturity over the next few years.

"FGV is also replanting about 15,000 hectares per annum to maintain and improve its age profile," the research house said.

FGV's 49 per cent-associate Felda Holdings Bhd (FHB) complements the group's upstream operations with milling and downstream businesses, HwangDBS said.

FGV has access to FHB's 3.3 million metric tonnes of crude palm oil, or seven per cent of global supply.

"We believe this provides FGV large economies of scale cost-wise," it said. -- Bernama

Maxis rated 'market perform' by Kenanga

Maxis Bhd's share price fell 11 sen to RM6.84 as at 11.26am today, despite news that it would enter a 10-year partnership with exclusivity for Astro to be the Internet Protocol television (IPTV) content service provider for three years.

Maxis Chief Executive Officer Sandip Das said both parties are currently in the midst of developing the packages and would co-market the packages.

Both companies are expected to jointly develop as well as co-market the consumer packages targeted to be launched in phases to the market by year-end.

Kenanga Research said the landmark strategic partnership would enable both companies to leverage on the synergies of each party's strengths and experiences.

"The ultimate package prices and contents will likely be the two key factors to determine the joint package take-up rate going forward," it said in a research note today.

The research house maintains a "market perform" call on Maxis with an unchanged target price of RM7.35. -- Bernama

2QFY12 within expectations - growth supported by RM1.8b orderbook

Stock Name: KIMLUN
Research House: ZJPrice Call: BUYTarget Price: 1.87

Acquisition of Battersea completed

Stock Name: SPSETIA
Company Name: SP SETIA BHD
Research House: MIDFPrice Call: HOLDTarget Price: 3.86

Loan growth to moderate as year’s target has been exceeded

Stock Name: MBSB
Research House: MIDFPrice Call: HOLDTarget Price: 2.45

Affin raises SP Setia to 'add'

Stock Name: SPSETIA
Company Name: SP SETIA BHD
Research House: AFFINPrice Call: TRADING BUYTarget Price: 3.82

Affin Investment Bank upgraded SP Setia Bhd to 'add' from 'reduce' and raised the stock's target price to RM3.82 from RM3.60.

SP Setia's valuations are "reasonably attractive" as the stock hasn't performed as well as its peers and Malaysia's benchmark composite stock index, Affin said in a research note on Thursday.

Additionally, Affin views the developer's purchase of London's Battersea power plant positively and is optimistic on the take-up rates for the first part of the project which involves property development.

"At a selling price of 900 pounds per square feet, we believe that the apartments are likely to achieve a decent take-up rate," Affin said but noted that the project will only contribute to SP Setia's bottom line upon completion and delivery of the properties in 2016.

At 9.25am, SP Setia was unchanged at RM3.56 while the benchmark composite index was down 0.44 per cent at 1,634.02. - Reuters

TA downgrades semiconductor sector

Stock Name: UNISEM
Company Name: UNISEM (M) BHD
Research House: TAPrice Call: SELLTarget Price: 1.00

TA Securities downgraded Malaysia's semiconductor sector to 'underweight' from 'neutral' as sales are likely to be constrained by global economic concerns.

There is a lack of positive catalysts for the sector and the current production cycle is low, TA said in a research note on Thursday.

TA reduced its rating on shares of Unisem Bhd to 'sell' from 'hold,' while cutting its target price to RM1 from RM1.35.

At 9.59 am, Unisem was down 0.96 per cent at RM1.03 while Malaysia's composite index was down 0.88 per cent at 1626.63 points. - Reuters

Wind of Change

Stock Name: TENAGA
Research House: TAPrice Call: BUYTarget Price: 8.32

September 5, 2012

Time dotCom a 'buy' says HLIB Research

Stock Name: TIMECOM
Research House: HLGPrice Call: BUYTarget Price: 4.12

Time dotCom Bhd's (TdC) share rose four sen to RM3.40 as at 11.45 am today on news that it has invested RM100 million to
create the TIME Fibre 100 megabits per second (mbps) Home Broadband.

Its Chief Executive Officer Afzal Abdul Rahim said TIME's 100 per cent fibre optic network would reach some 100,000 homes in the Klang Valley and Penang.

HLIB Research said: "We're slightly positive with TdC's approach in enlarging its presence in the consumer segment by offering undeniably the fastest fibre broadband in the market."

"Enticing the market with this new product will improve asset utilisation rate and hence the return on asset.

"We believe this product will be very appealing to high-end heavy duty users, especially existing Astro over-the-air subscribers," it said in a research note.

The research house said compared to TM's UniFi VIP20 bundle (package with highest speed at 20 megabytes per second, the monthly fee is RM70 cheaper and switchers would enjoy RM1,180 savings (after deducting RM500 termination cost) over the two-year contract period.

"This product is also better in monetising the data trend and upholding fair usage policy by imposing 100 gigabyte load quota, sufficient to accommodate normal usage while deterring bandwidth hoggers," it added.

HLIB Research reiterates "buy" call on TdC's shares with an unchanged RM4.12 target price. -- Bernama

2Q2012 results review

Stock Name: TRC
Research House: NETRESEARCHPrice Call: BUYTarget Price: 0.80

September 4, 2012

NPC Resources Bhd RR 2Q FY2012

Stock Name: NPC
Research House: WILSON & YORKPrice Call: HOLDTarget Price: 2.80

4QFYJun2012 results review

Stock Name: MALTON
Company Name: MALTON BHD
Research House: NETRESEARCHPrice Call: HOLDTarget Price: 0.60

Domestic consumption to drive growth

Stock Name: NESTLE
Company Name: NESTLE (M) BHD
Research House: TAPrice Call: SELLTarget Price: 59.73

Plans in the pipeline

Stock Name: NESTLE
Company Name: NESTLE (M) BHD
Research House: MIDFPrice Call: HOLDTarget Price: 59.52

FY12 sees earnings on the decline

Stock Name: IOICORP
Research House: ALLIANCEPrice Call: HOLDTarget Price: 5.19

HwangDBS keeps 'hold' call on Parkson

Stock Name: PARKSON
Research House: HWANGDBSPrice Call: HOLDTarget Price: 4.90

Parkson Holdings Bhd's (PHB) share price rose one sen to RM4.68 as at 12.16pm today, on news that it has acquired six hectares of land in Melaka for RM98 million.

The company said the proposed acquisition is expected to be completed by December this year and plans to develop a shopping mall on the land.

HwangDBS Vickers Research has maintained a "hold" call on PHB's shares with a target price of RM4.90.

It said it does not expect this new acquisition to impact PHB's earnings in the near term as it will take time for PHB to construct the shopping mall.

"Overall, we view this deal positively as it jives with management's long-term objective of building and owning its portfolio of investment properties and eventually setting up a retail REIT," HwangDBS said in its research note today.
-- Bernama