MIDF raises AMMB Holdings to RM7.30

Stock Name: AMBANK
Company Name: AMMB HOLDINGS BHD

Research House: MIDF

Price Call: HOLD

Target Price: 7.30

MIDF Research has raised its target price for financial services provider AMMB Holdings Bhd to RM7.30 from RM6.90, expecting stronger loan growth from the country's economic initiatives and capital market deals.

MIDF raised its loan growth assumption for AMMB to 10 per cent from eight per cent, though it emphasised that the company's loan growth has lagged behind the industry average.

"We understand that this was due to the company's strategy to be selective, in growing only profitable segments within the retail financing space," said MIDF in a report on Friday.

The brokerage maintained its 'neutral' call on the company.
Shares of the company were up 1.4 per cent to RM7.25 at 9.42am while the benchmark index rose 0.24 per cent.-- Reuters

MIDF raises Century Logistics' traget price

Stock Name: CENTURY
Company Name: CENTURY LOGISTICS HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 1.82

MIDF Research raised its target price on Century Logistics Holdings Bhd to RM1.82 from RM1.70 even after the company's first-quarter earnings came in below market expectations.

"We opine that the logistics business may recover in the second half of 2013 as overall manufacturing activities are set to pick up again," the research house said in a research note on Friday.

Maintaining a 'neutral' call on the stock, MIDF said another two distribution centres by Century Logistics with a total size of 400,000 sq ft will be ready by this quarter and may contribute RM8-RM9 million additional rental income to the company nnually.

"We expect the warehouse business to help fill in the earnings void left by the downsizing of its oil and gas transportation segment," it added.

Century Logistics reported a lower-than-expected 3.4 per cent year-on-year rise in net profit at RM4.45 million for the quarter ended March, mainly due to reduced activities in the company's oil and gas logistics and contract business.

The counter dropped 1.76 per cent to RM1.67 at 10.04am, underperforming the benchmark stock index's 0.28 per cent rise.-- Reuters

RHB maintains 'buy' on Time dotCom

Stock Name: TIMECOM
Company Name: TIME DOTCOM BHD

Research House: RHB

Price Call: BUY

Target Price: 4.95

RHB Research has maintained 'buy' call on Time dotCom after the telecommunications company delivered within expectation first quarter results.

"First quarter is typically a seasonally weaker quarter and the management expects the global bandwidth sales to pick up momentum going forward.

"We like Time for its high earnings growth potential against a backdrop of increasing demand for bandwidth capacity in Asia-Pacific," it said in a research note today.

The research house said the expansion of its data centre in Kuala Lumpur and Cyberjaya were completed in the fourth quarter last year although contributions would require some gestation as sales would be progressive.

The fair value for the telecommunications company remained unchanged at RM4.95.-- Bernama

Kenanga positive on Sime's property deal

Stock Name: SIME
Company Name: SIME DARBY BHD

Research House: KENANGA

Price Call: HOLD

Target Price: 9.80

Stock Name: SIME
Company Name: SIME DARBY BHD

Research House: RHB

Price Call: BUY

Target Price: 10.40

Kenanga Research is positive on Sime Darby Bhd's decision to award Zecon Bhd a RM82.97 million contract to build a 10-storey commercial building in Taman Melawati, Setapak, namely "Melawati
Corporate Centre".

"We reckon that the award to Zecon looks fair as its tender was the lowest.

"In addition, Sime Darby is protected in the event of any delays due to the existence of penalty clause of RM36,700 per day," it said in a research note today.

The research house said the conglomerate would likely rent out the offices once they were completed in mid-2015 and this should bode well for Sime Darby's property division.

"We are positive on the deal as increased sustainable earnings from the property division should reduce Sime Darby's dependency on its plantation division, which is exposed to crude palm oil price volatilities," it added.

Kenanga Research maintained a 'market perform' on Sime Darby's share price, with an unchanged target price of RM9.80.

The research house also said Sime Darby's award of a construction contract to Zecon and en-bloc sale of an office tower at its Oasis Square development in Ara Damansara, Petaling Jaya, for RM124.5 million, was part of its ordinary course of property development business.

"Pricing for the disposal is fair in our opinion," the research firm said.

RHB Research maintains a 'buy' call on Sime Darby, with a target price of RM10.40.-- Bernama

RHB maintains 'buy' call on Dijaya

Stock Name: DIJACOR
Company Name: DIJAYA CORPORATION BHD

Research House: RHB

Price Call: BUY

Target Price: 2.08

RHB Research has maintained 'buy' call on Dijaya Corp for the group's aggressive expansion plan for long-term growth.

"We raised our fair value to RM2.08 after factoring in the impact from the Canal City land and the proposed placement exercise," it said in a research note today.

Following the acquisition, Dijaya has three anchor projects now in three key property hotspots in Malaysia with the total landbank of 809.37 hectares and total gross development value of RM60 billion, the research house said.

"This size makes Dijaya comparable to some of the top market leaders in the property scene," it added.

Dijaya's 10 per cent placement exercise is also estimated to raise about RM140 million to RM160 million, the research firm said.

"The equity call is expected, considering the company's strategy to de-gear its balance sheet substantially and also need to fund land acquisitions," it added.-- Bernama

No Catalysts in the Near Term

Stock Name: EPMB
Company Name: EP MANUFACTURING BHD

Research House: TA

Price Call: SELL

Target Price: 0.84

O&G Division Listing at the End of 2013.

Stock Name: UMW
Company Name: UMW HOLDINGS BHD

Research House: TA

Price Call: HOLD

Target Price: 15.64

FY13 Results Within Expectations

Stock Name: AMBANK
Company Name: AMMB HOLDINGS BHD

Research House: TA

Price Call: BUY

Target Price: 8.10

Datuk Seri Abdul Wahid Omar Appointed Minister

Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD

Research House: TA

Price Call: BUY

Target Price: 12.00

Green light for virtual pipeline

Stock Name: GASMSIA
Company Name: GAS MALAYSIA BERHAD

Research House: MIDF

Price Call: BUY

Target Price: 3.65

End of cost overruns

Stock Name: DIALOG
Company Name: DIALOG GROUP BHD

Research House: MIDF

Price Call: BUY

Target Price: 3.29

Robust start to the year

Stock Name: UOADEV
Company Name: UOA DEVELOPMENT BERHAD

Research House: MIDF

Price Call: TRADING BUY

Target Price: 2.73

Capex-ing to continued success

Stock Name: GTRONIC
Company Name: GLOBETRONICS TECHNOLOGY BHD

Research House: MIDF

Price Call: BUY

Target Price: 2.35

ALMERA to the fore

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

Research House: MIDF

Price Call: BUY

Target Price: 7.70

EBIT Grew by 8.5% YTD

Stock Name: GAB
Company Name: GUINNESS ANCHOR BHD

Research House: TA

Price Call: SELL

Target Price: 17.87

Property IPO - A Rewarding Exercise

Stock Name: IOICORP
Company Name: IOI CORPORATION BHD

Research House: TA

Price Call: HOLD

Target Price: 5.87

Demerger of the property businesess

Stock Name: IOICORP
Company Name: IOI CORPORATION BHD

Research House: MIDF

Price Call: HOLD

Target Price: 4.60

Alliance maintains 'neutral' on Mudajaya

Stock Name: MUDAJYA
Company Name: MUDAJAYA GROUP BHD

Research House: ALLIANCE

Price Call: HOLD

Target Price: 2.93

Alliance Research has maintained its 'neutral' call on the Mudajaya Group, given the projected earnings decline this year and no immediate contract win potential for key domestic project rollouts.

"Mudajaya's orderbook stands at RM2.6 billion (1.8x Financial Year 2012 construction revenue). We feel that new job wins are likely to fall short of its orderbook burn rate," it said in a research note today.

"Our estimates impute RM500 million in annual orderbook replenishment from Financial year 2013-2015.

"With this, revenue should be on a declining trend, unless sizable job wins materialise," it added.

It also forecast Financial Year 2013 earnings for the
construction-cum-energy player to decline by 17 per cent year-on-year, given the drop in topline growth.

"Our earning growth of 16 per cent and six per cent for Financial Year 2014-2015 hinges heavily on associate contributions from Indian partner RKM Powergen, once the Chhattisgarh independent power producer (IPP) plant
commences.

"Overall, our Financial Year 2013-2014 earnings are cut by 24.3 per cent and 16 per cent, respectively.

"The lower sum of parts (SOP) discount offsets the impact of our earnings cut and our target price is raised marginally from RM2.85 to RM2.93 (3.7 per cent upside)," Alliance Research said.-- Bernama

Affin upgrades IOI Corp to 'add'

Stock Name: IOICORP
Company Name: IOI CORPORATION BHD

Research House: AFFIN

Price Call: BUY

Target Price: 5.62

Affin Investment Bank upgraded IOI Corporation Bhd to 'add' from 'reduce' after the property and plantations group proposed to spin off its property business as a separate and independent listed company.

The broking house also raised its target price on IOI Corp to RM5.62 per share from RM4.93.

"We believe revalued net asset value (RNAV) valuation with an appropriate discount based on the quantum of future earnings stream has basis for property companies with large land banks," Affin said in a research note on Wednesday.

It pegged the new listed property firm at RM4.42 per share, a discount to the RNAV.

The property firm is expected to be the largest of its kind in Malaysia with a total asset size of almost RM15 billion and total land bank of over 10,000 acres, spread across Malaysia, Singapore and China, according to Affin.

Total gross development value over the next three years is estimated at RM16 billion, it added.

Shares of IOI Corp dropped 0.18 per cent to RM5.45 per share at 10.07am, underperforming the benchmark stock index's 0.28 per cent rise.-- Reuters

3Q/FY13 results - within expectations. Maintain Hold Call.

Stock Name: FREIGHT
Company Name: FREIGHT MANAGEMENT HLDGS BHD

Research House: MERCURY

Price Call: HOLD

Target Price: 1.44

Declining domestic sales mitigated by growing exports

Stock Name: MSM
Company Name: MSM MALAYSIA HOLDINGS BERHAD

Research House: MIDF

Price Call: HOLD

Target Price: 4.43

Modest Pan Malaysia contract

Stock Name: SKPETRO
Company Name: SAPURAKENCANA PETROLEUM BHD

Research House: MIDF

Price Call: BUY

Target Price: 3.96

Price reflecting visible fundamentals

Stock Name: FABER
Company Name: FABER GROUP BHD

Research House: MIDF

Price Call: HOLD

Target Price: 1.67

1QFY13 Core Earnings Within Expectations

Stock Name: PETGAS
Company Name: PETRONAS GAS BHD

Research House: TA

Price Call: SELL

Target Price: 16.64

Positioned to Capture Growth Across the Region

Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD

Research House: TA

Price Call: BUY

Target Price: 12.00

MIDF raises Petronas Gas target price

Stock Name: PETGAS
Company Name: PETRONAS GAS BHD

Research House: MIDF

Price Call: HOLD

Target Price: 18.12

MIDF Research raised its target price on shares of Petronas Gas Bhd to RM18.12 from RM17.12 after the company's operating profit from its core business segments expanded in the last quarter.

Shares of Petronas Gas remained unchanged at RM20.40, while the benchmark index gained 0.25 per cent.

Petronas Gas' net profit rose 8.1 per cent in the first quarter ended March 31, 2013 due to higher operating margins from its core segments, said MIDF in a report on Monday. The brokerage maintained its 'neutral' rating on Petronas shares.

MIDF said an upcoming re-gasification plant would lift the company's annual earnings by up to RM115 million. "Our target price could be adjusted higher to a range of RM18.97 to RM19.34 with the inclusion of contributions from the plant," it said.-- Reuters