August 22, 2013

Factory outlet will up MAHB non-aero gains

Stock Name: AIRPORT
Company Name: MALAYSIA AIRPORTS HOLDINGS BHD
Research House: ALLIANCEPrice Call: HOLDTarget Price: 6.78



Alliance Research expects Malaysia Airports Holdings Bhd's (MAHB) non-aeronautical revenue to be boosted upon the
completion of the Mitsui Outlet Park KL International Airport in 2015.

In a note today, the research house said once completed, MAHB would be entitled to an annual royalty and rent from the development, thus generating sustainable recurring income for the national airports operator.

MAHB signed a joint-venture agreement with Mitsui Fudosan Co Ltd to undertake the largest factory outlet project in South-East Asia, worth RM335 million.

Under the agreement, MAHB and Mitsui would form a joint-venture (JV) company, MFMA Development Sdn Bhd, to build the factory outlet. MAHB would hold a 30 per cent stake in the JV.

"We also favourably view the terms of the collaboration as MAHB will be entitled to an upfront concession fee, effectively subsidising its cost of investment in the JV.

"We are positive over the long-term fundamentals of MAHB, while riding the boom of low-cost carriers without the accompanying fuel cost risk," it added.

Alliance Research maintained it 'neutral' call on the stock, with an unchanged target price of RM6.78.-- Bernama

AirAsia - Yield contracts as competition heightens

Stock Name: AIRASIA
Company Name: AIRASIA BHD
Research House: MIDFPrice Call: BUYTarget Price: 3.78



Maybank - Loan loss provisioning likely to be lower in 2HFY13

Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Research House: MIDFPrice Call: BUYTarget Price: 11.00



Maybulk - Dry bulk segment still bleeding

Stock Name: MAYBULK
Company Name: MALAYSIAN BULK CARRIERS BHD
Research House: MIDFPrice Call: HOLDTarget Price: 1.90



MSM - To benefit from lower free-market prices as LTC drops to 40%

Stock Name: MSM
Company Name: MSM MALAYSIA HOLDINGS BERHAD
Research House: MIDFPrice Call: HOLDTarget Price: 5.28



August 21, 2013

TSH - 2QFY13 - Results Review

Stock Name: TSH
Company Name: TSH RESOURCES BHD
Research House: MIDFPrice Call: HOLDTarget Price: 2.50



AirAsia X - Shrinking losses in a traditionally weak quarter

Stock Name: AAX
Company Name: AIRASIA X BERHAD
Research House: MIDFPrice Call: BUYTarget Price: 1.70



BumiArmada - Highest PATAMI in six quarters

Stock Name: ARMADA
Company Name: BUMI ARMADA BERHAD
Research House: MIDFPrice Call: BUYTarget Price: 4.83



Dialog - Ended the year on a high

Stock Name: DIALOG
Company Name: DIALOG GROUP BHD
Research House: MIDFPrice Call: BUYTarget Price: 3.29



KLK - Earnings impacted by lower CPO prices

Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
Research House: MIDFPrice Call: HOLDTarget Price: 21.40



MAS - Degradation of ticket yield base

Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: MIDFPrice Call: SELLTarget Price: 0.27



TH Plantations - Growing pains

Stock Name: THPLANT
Company Name: TH PLANTATIONS BHD
Research House: MIDFPrice Call: BUYTarget Price: 2.10



Alam Maritim - Mast-erful navigation

Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD
Research House: CIMBPrice Call: BUYTarget Price: 1.49