BPURI - Bina Puri's earnings forecast revised up

Stock Name: BPURI
Company Name: BINA PURI HOLDINGS BHD
Research House: KENANGA



KENANGA Research has revised upward the earnings forecast of Bina Puri Holdings by five per cent for the financial year 2011 after imputing the amount of contract to be recognised.

Kenanga Research in a statement Monday said it has maintained a "buy" recommendation on the company's shares but placed a higher target price of RM1.92 from RM1.79 previously.

The research company also forecast Bina Puri to record a RM33 million net profit for the financial year 2012, reflective of a higher recognition of two significant projects, the Low Cost Carrier Terminal (LCCT) and Light Rail Transit (LRT) contracts with a two per cent net margin assumption.

It added, media reports of a joint venture company between Bina Puri and Tim Sekata Sdn Bhd having been appointed the contractor for phase one of the LRT Ampang extension from Sri Petaling to Putra Heights, bodes well for the company's earnings for financial year 2011.

It also added, the RM635 million LRT project as well as a RM68 million contract to fabricate and deliver the segmental box girder, will add some earnings visibility for the next two and a half years.

This Kenanga Research explained, will contribute to the bottomline, mainly in financial year 2011 and 2012. - BERNAMA

SUNRISE - ECM revises Sunrise rating to 'hold'

Stock Name: SUNRISE
Company Name: SUNRISE BHD
Research House: ECMLIBRA



ECM Libra has revised Sunrise Bhd recommendation to "hold" from "buy" but maintained the target price at RM2.80 per share following UEM Land Holdings' takeover offer to acquire all the company's equity last week.

It said UEM Land offer price of RM2.80 has increased the company's share price by 8.3 per cent to RM2.73, close to the offer price.

While Sunrise's revised net asset value is estimated to be at RM3.46 per share, near term upside is expected to be capped by the offer price, it said in a research note.

Prior to the acquisition, ECM Libra said UEM land did not intend to maintain the listing status of Sunrise if the company did not fulfil the minimum public shareholding spread as a result of the takeover offer. - Bernama

TM - ECM keeps 'hold' call on TM

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
Research House: ECMLIBRA



ECM Libra Investment Research is maintaining its "hold" call on Telekom Malaysia (TM) with an unchanged target price of RM3.54.

In its research note here today, it said TM's nine-month financial year 2010 core net profit of RM324.5 million, was in-line with its expectations but below consensus expectation.

The research house projected TM's Unifi subscribers growth at 20-30 per cent Compound Annual Growth Rate (CAGR)over the next two years.

"2011 will be a ramp-up year for Unifi, while 2012 will see significant revenue contribution from Unifi," it added.

ECM said, TM plans to stick to its dividend policy of paying RM700 million or 90 per cent of net profits, whichever is higher.

"Any changes in its dividend policy will only be considered after the announcement of its last quarter result," it added.

Meanwhile, AmResearch said it is maintaining a "buy" call on TM with a fair value of RM3.90.

The research house said, TM made RM446.6 million in the third quarter financial year 2010, against RM497 million of its full-year estimate.

"We were hoping that the second half 2010 would be able to register a better performance due to the festive season," it added.

It said, against the last quarter, there was an expected reduction in revenue from voice business, by 2.2 per cent, which may have been caused by the bundle packages.

"The implication of which is, as more subscribers upgrade to bundle packages, the contribution from voice business would decline in tandem," it added. -- Bernama

EONCAP - 'EONCap takeover likely to proceed'

Stock Name: EONCAP
Company Name: EON CAPITAL BHD
Research House: AMMB



AmResearch Sdn Bhd is maintaining its view that the EON Capital Bhd (EONCap) takeover by Hong Leong Bank Bhd (HLBB) will likely proceed.

The fair value for EON Cap remains at RM7.30 per share, it said in its research note today.

HLBB and EON Cap have announced that HLBB had extended the deadline for EON Cap to accept its offer to acquire the latter's entire assets and liabilities to April 30 next year from Nov 30, 2010.

AmResearch said, there is no surprise, as it had been widely expected following news that the High Court had provided further dates for the hearing of Primus (M) Sdn Bhd''s first petition, which stretches to March next year.

This is in relation to the petition filed by Primus, EON Cap's major shareholder, essentially on grounds that selected directors had neither performed their fiduciary duties nor acted in the best interest of the company.

Primus also felt the proposed takeover is not structured in the best interest of shareholders.

"We still think that EON Cap's acceptance is pending, only on one main condition, which is the outcome of the lawsuit.

"This is because we consider EON Cap to have fulfilled most of the conditions set by HLBB in order to comply with the latter's Nov 30, 2010 timeline," AmResearch said. -- Bernama

SUNWAY - ECM maintains 'buy' call on Sunway

Stock Name: SUNWAY
Company Name: SUNWAY HOLDINGS BHD
Research House: ECMLIBRA



The earnings estimate of Sunway Holdings Bhd has been revised upward by 1.1 per cent for the financial year 2012, taking into account the contributions to be generated by the Tampines development, says ECM Libra Investment Research.

Last week, Sunway Holdings in filing with Bursa Malaysia said the Housing and Development Board of Singapore had awarded the tender for a parcel of land in Tampines Avenue 8 on a 99-year lease term at S$187.59 million or about RM450 million.

The tender was jointly submitted by Hoi Hup Realty Pte Lt, SC Wong Holdings Pte Ltd and Sunway Developments Pte Ltd, a wholly-owned subsidiary of the group.

"We are positive about the project as the group has significant experience in the Singaporean property market, having launched three projects since 2008.

"Another private housing development located in Yishun is slated for launch in the second half of next year," ECM Libra said in a research note today.

The research firm said the group's Singaporean projects have thus far registered strong sales.

ECM Libra said Sunway remains its top "buy" for the construction sector.

This is premised on a strong earnings growth of 86.5 per cent in this financial year, more landbank acquisitions in the pipeline and strength in securing overseas construction contracts, the research firm said. -- Bernama

ANNJOO - AmResearch cuts Ann Joo's fair value

Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: AMMB



AmResearch Sdn Bhd is projecting Ann Joo Resources Bhd's net profit for the financial year 2011 to expand by 59 per cent year-on-year to RM244 million.

This is largely backed by maiden contributions from its new blast furnace amid an imminent steel price upcycle, it said in its research note today.

AmResearch has maintained a "buy" call on Ann Joo with a lower fair value of RM4.02 per share from RM4.20 previously.

Ann Joo recorded a nine months financial year 2010 net profit of RM123 million against RM9 million a year earlier.

"While we expect a better performance in the fourth quarter financial year 2010, we have clipped the financial year 2010 net profit forecast by 13 per cent to RM154 million to account for some slight hiccups in the roll-out of its new blast furnace.

"But, hot commissioning works, are still on track to kick off by end of this year. More than 90 per cent of the plants' equipment/structures have been installed," AmResearch said.

Ann Joo is seeing an imminent upswing in steel prices in the fourth quarter financial year 2010 given low global inventories. It also revealed that export enquiries have resumed since two weeks ago.

With its steel-making unit running at full capacity, AmResearch said Ann Joo is also well positioned to benefit from a revitalisation of domestic steel demand in fourth quarter financial year 2010. -- Bernama

ANNJOO - OSK Research ups Ann Joo TP to RM2.76

Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: OSK

KUALA LUMPUR: OSK Research said Ann Joo's 3Q net profit plummeted to RM10.4 million but this was well within its estimates.

In its research note issued on Monday, Nov 29, it said the poor numbers were attributed to lower steel prices and demand, which were further worsened by escalating material costs.

'While we see an improvement in 4Q, we think the recovery may be limited. Compounded by another delay in commissioning its blast furnace and the lack of major earnings surprises, the stock's expensive valuation versus its peers warrant no change in our NEUTRAL recommendation, with its target price revised up slightly to RM2.76 on rolling over its valuation to FY11,' it said.

OSK Research pervious target price was RM2.64 while the last traded price was RM2.86.

TM - OSK Research keeps Telekom target price unch at RM3.28

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
Research House: OSK

KUALA LUMPUR: OSK Research said Telekom Malaysia's annualised 9MFY10 core earnings were in line with its but below consensus estimates.

The research house on Monday, Nov 29 there were no surprises in that its fixed line (DEL) business continued to languish with the internet and data segments providing the silver lining.

'We make no change to our forecast noting that Unifi will be dilutive to earnings over the medium term. TM is expensive on PER terms and lacks share price catalysts," it said.

OSK Research said however TM's decent dividend yield of 7.8% should mitigate any share price downside. Our TP is unchanged at RM3.28.

'We prefer DiGi for dividend exposure,' it said.

SIME - AmResearch maintains Buy on Sime Darby, FV RM9.90

Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: AMMB

KUALA LUMPUR: AmResearch reiterates its BUY call on SIME DARBY BHD [] but lowered its earnings expectations.

The research house said on Monday, Nov 29 it had reduced its fair value from RM10.45 a share to RM9.90 a share, pegged to an unchanged 10% discount to its sum-of-parts value of RM10.98 a share.

'Our fair value implies a CY11F PE of 17 times'' - at parity to its three-year average. The group's 1QFY11 net profit of RM655 million (-4% YoY) came in below expectations, accounting for 19% of our earlier FY11F earnings of RM3.4billion and 21% of street estimate's RM3.1 billion,' it said.

AmResearch said this largely stemmed from the lower-than-expected earnings rebound from higher crude palm oil prices. The stock currently trades at an attractive CY11F PE of 15 times, below its three-year average of 17 times.

SIME - Sime upgraded to 'buy' at HwangDBS

Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: HWANGDBS



Sime Darby Bhd, the world's biggest publicly traded palm oil producer, was upgraded to "buy" from "hold" at HwangDBS Vickers Research Sdn Bhd, after recovery in most of the group's businesses exceeded expectations.

"We believe Sime deserves a second look as current earnings growth momentum still has legs," HwangDBS said in a report today.

The share price estimate was raised to RM10.20 from RM9.00. - Bloomberg