Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
Company Name: CIMB GROUP HOLDINGS BERHAD
| Research House: MIDF | Price Call: HOLD | Target Price: 8.20 |
January 18, 2013
CIMB shares traded lower
Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
CIMB Group Holdings Bhd's shares were traded lower in the morning session today on news that the group has agreed to
dispose 98 per cent of CIMB Aviva Assurance Bhd and CIMB Aviva Takaful Bhd for RM1.8 billion with Khazanah Nasional Bhd and Sun Life Financial Inc.
CIMB's shares fell four sen to RM7.57 as at 11.14 am, with 3,198,200 shares changing hands.
The deal will see Khazanah and Sun Life each paying RM900 million in respect of the transaction which includes entering into a new 20-year exclusive bancassurance agreement with CIMB Bank Bhd.
Khazanah and Sun Life are each acquiring 49 per cent of the company from Aviva International Holdings Ltd and CIMB Group Holdings Bhd, respectively.
Kenanga Research is positive on the sales as they are seen as unlocking the group's value.
It said the sale proceeds will enable CIMB to replenish its capital after its two major acquisitions made early last year.
"We believe the valuation of the sale is attractive due to the interest of both Khazanah and Sun Life to want to forge a long-term strategic alliance in the insurance sector and thus are willing to pay a higher price to land a good asset in the sector to kick-start their partnership," it said in a research note today.
The research house maintained an "outperform" rating on CIMB's shares with a target price of RM8.20.
Meanwhile, Alliance Research said CIMB is able to dispose its stake in CIMB Aviva since the stake comes with control premium and the disposal comprises exclusive rights for Sun Life, the new bancassurance partner, to distribute its insurance products, through CIMB Bank's network across Malaysia.
"Although the indicative gain of disposal to CIMB is about RM800 million based on the latest combined book value of CIMB Aviva entities, we understand that there were revaluations at group level in the past.
"Therefore the net gain could not be determined at this juncture," it added.
Alliance Research is maintaining its "neutral" recommendation for CIMB with an unchanged target price of RM7.81. -- Bernama
Company Name: CIMB GROUP HOLDINGS BERHAD
| Research House: ALLIANCE | Price Call: HOLD | Target Price: 7.81 |
CIMB Group Holdings Bhd's shares were traded lower in the morning session today on news that the group has agreed to
dispose 98 per cent of CIMB Aviva Assurance Bhd and CIMB Aviva Takaful Bhd for RM1.8 billion with Khazanah Nasional Bhd and Sun Life Financial Inc.
CIMB's shares fell four sen to RM7.57 as at 11.14 am, with 3,198,200 shares changing hands.
The deal will see Khazanah and Sun Life each paying RM900 million in respect of the transaction which includes entering into a new 20-year exclusive bancassurance agreement with CIMB Bank Bhd.
Khazanah and Sun Life are each acquiring 49 per cent of the company from Aviva International Holdings Ltd and CIMB Group Holdings Bhd, respectively.
Kenanga Research is positive on the sales as they are seen as unlocking the group's value.
It said the sale proceeds will enable CIMB to replenish its capital after its two major acquisitions made early last year.
"We believe the valuation of the sale is attractive due to the interest of both Khazanah and Sun Life to want to forge a long-term strategic alliance in the insurance sector and thus are willing to pay a higher price to land a good asset in the sector to kick-start their partnership," it said in a research note today.
The research house maintained an "outperform" rating on CIMB's shares with a target price of RM8.20.
Meanwhile, Alliance Research said CIMB is able to dispose its stake in CIMB Aviva since the stake comes with control premium and the disposal comprises exclusive rights for Sun Life, the new bancassurance partner, to distribute its insurance products, through CIMB Bank's network across Malaysia.
"Although the indicative gain of disposal to CIMB is about RM800 million based on the latest combined book value of CIMB Aviva entities, we understand that there were revaluations at group level in the past.
"Therefore the net gain could not be determined at this juncture," it added.
Alliance Research is maintaining its "neutral" recommendation for CIMB with an unchanged target price of RM7.81. -- Bernama
Affin raises KL Kepong target price
Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
Affin Investment Bank raised the target price of Malaysia's third biggest oil palm planter KL Kepong Bhd (KLK) to RM19.62 per share from RM18.64 as productivity improves in the firm's Indonesian estates.
KLK is likely to post above average growth for fresh fruit bunch (FFB) output as more estates in Indonesia reach maturity and new acquisitions raise the firm's landbank close to 300,000 hectares, Affin said in a note.
Higher yields from KLK's estates are likely to lower production costs to RM1,290 per tonne this year from RM1,303 last year, the investment bank said.
Affin kept a "reduce" call on the stock as the price outlook is not so bright for crude palm oil extracted from the FBB on account of high stocks of the edible oil in Southeast Asia and sluggish demand.
KLK shares were up 0.4 per cent at RM21.94 as of 9.42 am (0142 GMT). -- Reuters
Company Name: KUALA LUMPUR KEPONG BHD
| Research House: AFFIN | Price Call: SELL | Target Price: 19.62 |
Affin Investment Bank raised the target price of Malaysia's third biggest oil palm planter KL Kepong Bhd (KLK) to RM19.62 per share from RM18.64 as productivity improves in the firm's Indonesian estates.
KLK is likely to post above average growth for fresh fruit bunch (FFB) output as more estates in Indonesia reach maturity and new acquisitions raise the firm's landbank close to 300,000 hectares, Affin said in a note.
Higher yields from KLK's estates are likely to lower production costs to RM1,290 per tonne this year from RM1,303 last year, the investment bank said.
Affin kept a "reduce" call on the stock as the price outlook is not so bright for crude palm oil extracted from the FBB on account of high stocks of the edible oil in Southeast Asia and sluggish demand.
KLK shares were up 0.4 per cent at RM21.94 as of 9.42 am (0142 GMT). -- Reuters
January 17, 2013
Update Report
Stock Name: SALCON
Company Name: SALCON BHD
Company Name: SALCON BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.78 |
TNB - Yen boost
Stock Name: TENAGA
Company Name: TENAGA NASIONAL BHD
Company Name: TENAGA NASIONAL BHD
| Research House: MIDF | Price Call: BUY | Target Price: 8.00 |
Wah Seong - OpportuneTimeToGoLong
Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD
Company Name: WAH SEONG CORPORATION BHD
| Research House: MIDF | Price Call: BUY | Target Price: 2.19 |
January 16, 2013
Seeing Light at The End of Tunnel?
Stock Name: MELEWAR
Company Name: MELEWAR INDUSTRIAL GROUP BHD
Company Name: MELEWAR INDUSTRIAL GROUP BHD
| Research House: TA | Price Call: BUY | Target Price: 0.325 |
Alam Maritim - It's a-boat time - 16 January 2013
Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD
Company Name: ALAM MARITIM RESOURCES BHD
| Research House: CIMB | Price Call: BUY | Target Price: 0.855 |
RM325m ADIA contract
Stock Name: SENDAI
Company Name: EVERSENDAI CORPORATION BERHAD
Company Name: EVERSENDAI CORPORATION BERHAD
| Research House: MIDF | Price Call: BUY | Target Price: 2.08 |
A Good Start
Stock Name: SENDAI
Company Name: EVERSENDAI CORPORATION BERHAD
Company Name: EVERSENDAI CORPORATION BERHAD
| Research House: TA | Price Call: BUY | Target Price: 1.93 |
January 15, 2013
Rights Issue to fund property development
Stock Name: NEXTNAT
Company Name: NEXTNATION COMMUNICATION BHD
Company Name: NEXTNATION COMMUNICATION BHD
| Research House: TA | Price Call: SELL | Target Price: 0.09 |
January 14, 2013
A Blended Affair
Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
Company Name: KUALA LUMPUR KEPONG BHD
| Research House: TA | Price Call: SELL | Target Price: 16.63 |
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