GAB up on special interim dividend plan

Stock Name: GAB
Company Name: GUINNESS ANCHOR BHD

Research House: MAYBANK

Price Call: BUY

Target Price: 13.00

KUALA LUMPUR (Dec 13): GUINNESS ANCHOR BHD [] (GAB) shares rose on Tuesday after the company announced a single tier special interim dividend of 60 sen per 50 sen share for the financial year ending June 30, 2012, to be paid on Jan 20 next year.

At 9.35am, GAB added 64 sen to RM12.92 with 33,500 shares traded.

Maybank Investment Bank Bhd Research said that the company's plan to further reward shareholders with a special dividend was a pleasant, though not entirely surprising move.

'In fact, we see the potential for more capital management going forward, and thus, maintain a Buy on this stock for its resilient earnings and attractive net dividend yield of 9.8%.

'Our DCF-based target price is raised to RM13.00 from RM11.50,' it said on Tuesday.

CIMB Research has technical sell on CCM at RM1.62

Stock Name: CCM
Company Name: CHEMICAL COMPANY OF MALAYSIA

Research House: CIMB

Price Call: SELL

Target Price: 1.62

KUALA LUMPUR (Dec 13): CIMB Equities Research has a technical sell on CHEMICAL COMPANY OF MALAYSIA [] at RM1.62 at which it is trading at a price-to-book value of 0.9 times.

It said on Tuesday the stock was in a sideways consolidation mode for the past few days. Prices hit its 50-day SMA before buyers re-surfaced.

'However, we think that this 50-day SMA support is weak as prices may still succumb to one more downleg, which could potentially drag prices towards RM1.54 and RM1.40,' it said.

CIMB Research said the indicators continued to show lacklustre trends. MACD histogram bars were hovering in the negative territory while RSI was below the 50 pts mark.

'Unless prices climb back above the RM1.71 level, we would rather stick with the bear's camp,' it said.

CIMB Research has technical sell on MISC at RM5.60

Stock Name: MISC
Company Name: MISC BHD

Research House: CIMB

Price Call: SELL

Target Price: 5.60

KUALA LUMPUR (Dec 13): CIMB Equities Research has a technical sell on MISC at RM5.60 at which it is trading at a FY13 price-to-earnings of 16.5 times and price-to-book value of 1.1 times.

It said on Tuesday that MISC was trading below all its key moving averages. 'Hence, we have reason to believe that the stock is still entrenched in a downtrend channel. If we are right, the candles are likely to fall towards RM5.25 and possibly even RM4.90 in the near term,' it said.

CIMB Research said the technical landscape remained lethargic. MACD signal line was hovering in the negative territory while RSI was below the 50 pts mark.

'Unload on strength looks like a good option here, especially near the RM5.88-RM5.98 levels. We will only review our call if prices push back above the 30-day and 50-day SMAs,' it said.

Top Glove Corporation (Sell): Sentiment over, re-examining fundamentals

Stock Name: TOPGLOV
Company Name: TOP GLOVE CORPORATION BHD

Research House: MAYBANK

Price Call: SELL

Target Price: 3.40

Sell on strength. 1QFY12 net profit is likely to undershoot market's expectation but in line with ours. We think recent share price strength (+8% in 2 months) is sentiment driven on positive leading indicators (falling latex cost, stronger USD). However, we caution that over-capacity in the latex powdered segment (53% of product mix) will limit earnings recovery and there is now downside risk to street's earnings estimates. The stock currently trades at an expensive valuation of 16x CY13 PER. Our RM3.40 DCF-derived TP implies 12x CY13 PER.


Maybank research (12 December 2011)

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RHB Research downgrades Gamuda to market perform, FV RM3.02

Stock Name: GAMUDA
Company Name: GAMUDA BHD

Research House: RHB

Price Call: HOLD

Target Price: 3.02

KUALA LUMPUR (Dec 12): RHB Research Institute had downgraded GAMUDA BHD [] to market perform and cut its fair value to from RM3.41 to RM3.02.

It said on Monday that it expects 1QFY07/12 net profit to come in at RM100 million to RM105 million that will have met its expectations but miss the market consensus.

'We believe 1QFY07/12 core net profit declined 17-21% on-quarter due to the absence of a writeback of over-provision of scheduled highway maintenance, continued easing in property profits and slightly reduced CONSTRUCTION [] margins,' it said.

'Fair value cut from RM3.41 to RM3.02, now valuing Gamuda's construction business at 12 times one-year forward earnings (from 14 times previously),' it said.

RHB Research said this was in line with the downgrade in its one-year forward target PER for the construction sector to 8.0 times and 12 times (from 10 times to 14 times previously).

Petronas Chems upgraded, stock rises

Stock Name: PCHEM
Company Name: PETRONAS CHEMICALS GROUP BHD

Research House: RHB

Price Call: BUY

Target Price: 6.72

Petronas Chemicals Group Bhd, the petrochemicals arm of Malaysia's state oil company, rose the most in more than a week in Kuala Lumpur trading after the stock was upgraded to "outperform" with an increased so-called fair value of RM6.72 at RHB Capital Bhd.

Its shares gained 1.3 percent to RM6.08 at 9:15 a.m. local time, set for their biggest increase since Dec. 1. -- Bloomberg

Planning foray into PNG for oil palm plantation

Stock Name: TAANN
Company Name: TA ANN HOLDINGS BHD

Research House: AMMB

Price Call: BUY

Target Price: 6.80

Lotus Attracts Chinese Suitor

Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD

Research House: OSK

Price Call: TRADING BUY

Target Price: 5.00

An Attractive Growth-Value Proposition

Stock Name: SOP
Company Name: SARAWAK OIL PALMS BHD

Research House: OSK

Price Call: BUY

Target Price: 6.51

Strikes RM1bn Job From O&G Giant

Stock Name: KENCANA
Company Name: KENCANA PETROLEUM BHD

Research House: OSK

Price Call: BUY

Target Price: 3.17