RHB Research maintains market perform on Faber, FV RM1.53

Stock Name: FABER
Company Name: FABER GROUP BHD

Research House: RHB

Price Call: HOLD

Target Price: 1.53

KUALA LUMPUR (Dec 14): RHB Research Institute is maintaining its market perform call on FABER GROUP BHD [] and leaving its sum-of-parts fair value estimate of RM1.53 unchanged pending the outcome of a lawsuit filed by a UAE contractor

It said on Wednesday that Faber reported that its UAE subsidiary, Faber LLC, and Project Penyelenggaraan Lebuhraya Bhd (Propel) received a summons and statement of claim from the UAE contractor Al Femah Contracting and Transporting Establishment (Al Femah) amounting to about RM13.1 million.

RHB Research said following an earlier lawsuit by Baynona Group, Faber'' now faces new claims made by Al Femah in relation to completed contract works for the infrastructure facilities at Madinat Zayed, UAE.

The contract works were first awarded to Faber LLC by the Department of Municipal Affairs, Western Region Municipality was subsequently contracted out to Propel which in turn, subcontracted out works to Al Femah.

'We understand from management that there was no direct award of subcontracting works to Al Femah. Propel had also informed Faber that it is currently disputing an additional claim of approximately RM7.3 million from Al Femah, on top of the approximately RM5.7 million outstanding amount owed to Al Femah,' ir said.

The research house said the lawsuit against Faber is currently at a preliminary stage as Al Femah is seeking Al Dhafra Court's approval to accept the case and serve summons to Faber and Propel in relation to the amounts claimed.

'Risks to our view are a failure to secure an extension to the concession agreement with the government; and delays in property launches and approvals, which could affect revenues from the property segment,' it said.

Dividend reinvestment plan due on 15 Dec

Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD

Research House: AMMB

Price Call: BUY

Target Price: 9.20

Aircraft funding intact, index boost

Stock Name: AIRASIA
Company Name: AIRASIA BHD

Research House: AMMB

Price Call: BUY

Target Price: 5.00

Strong Earnings Growth Driven By Plantation

Stock Name: JTIASA
Company Name: JAYA TIASA HOLDINGS BHD

Research House: RHB

Price Call: BUY

Target Price: 7.28

HLIB Research 13 December 2011 (BToto; Traders Brief)

Stock Name: BJTOTO
Company Name: BERJAYA SPORTS TOTO BHD

Research House: HLG

Price Call: BUY

Target Price: 4.92

BToto (BUY)

1HFY12 Results In-Line

'''' BToto's 1HFY12 net profit of RM197.8m came largely in-line, accounting for 50% of HLIB's and street's estimates.

'''' It declared second interim single tier dividend of 8 sen per share payable on 18 Jan 2012. 1HFY12's dividend totaled to 16 sen (1HFY11: 12 sen), representing dividend payout ratio and dividend yield of 109.3% and 3.6% respectively.

'''' The increase in net profit yoy was mainly due to the introduction of 4D Jackpot and lower prize payout ratio, partially offset by lesser draw days. On qoq basis, the increase is attributed to the lower prize payout ratio which also partially offset by lesser draw days in the quarter.

'''' Besides, BToto's total sales per draw increased 4.3% qoq and 4.4% yoy shows better performance in its 4D Jackpot game despite lesser draw days during the quarter.

'''' 4D Jackpot's sales remained stable during the quarter at RM1.7m/draw, reaching to 44.4% market share against Magnum's 55.6%.

'''' Forecasts remained unchanged with TP of RM4.92 based on DCF with WACC of 8.8%. Maintain BUY.

''

KLCI: Volatility ahead''

'''' Amid continued volatility, we still advocate the strategy of buy on weakness and take profits in any rebound, in anticipation of year-end window dressing activities, potential Chinese New Year and pre-election rallies as well as sufficient domestic catalysts and fiscal stimuli that will support a modest economic growth in 2012. Immediate supports are 50-d SMA or uptrend line (1449), followed by lower Bollinger band (1426). Resistance levels are 10-d SMA (1474) and 200-d SMA (1503).

''

MRCB: Base building for an impending breakout''

'''' After rising to 52-wk high of RM2.60 (2 Aug), it tumbled to RM1.48 (26 Sep) before trending upwards to RM1.97 yesterday. MRCB is likely to consolidate for a short while with immediate support at RM1.87 (Nov 24 low).

'''' After a brief consolidation, the next upswing is expected to push prices towards its daily upper Bollinger band (RM2.06) and 200-d SMA (RM2.10). A breakout above RM2.10 will drive prices higher towards stronger resistance zones of RM2.18 (38.2% FR) and RM2.35 (23.6% FR). Cut loss below RM1.85.

Berjaya Sports Toto (Buy): All I want for Christmas is more dividends

Stock Name: BJTOTO
Company Name: BERJAYA SPORTS TOTO BHD

Research House: MAYBANK

Price Call: BUY

Target Price: 4.85

Great results. 2QFY12 net profit of RM105.7m (+62% YoY, +15% QoQ) brought 1HFY12 net profit to RM197.8m (+53% YoY), within expectations at 49% of our FY12 estimate. 1HFY12 revenue of RM1.7b (+2% YoY) was also in line at 48% of our FY12 estimate. Although it surprised with another interim net DPS of 8 sen (16 sen YTD), representing a net DPR of 108% (assumption: 75%), we still hold out for a major capital management exercise. Maintain Buy, RM4.85 TP.

Maybank research (13 December 2011)

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Axiata edges up after Celcom teams with Broadcast Australia

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD

Research House: RHB

Price Call: HOLD

Target Price: 5.15

KUALA LUMPUR (Dec 13): Axiata Group Bhd shares advanced on Tuesday after Celcom signed a teaming agreement with Broadcast Australia, its technical partner in the bid to build infrastructure for the country's digital terrestrial television broadcasting (DTTB) network.

RHB Research in a note Tuesday said that it was positive if Celcom wins the tender, due to the potential for recurring income from renting out the infrastructure for the DTTB network to TV broadcasters.

At 11.45am, Axiata rose two sen to RM4.84 with 846,100 shares traded.

RHB Research Institute has maintained its market perform recommendation on Axiata Group and a fair value of RM5.15, and said capex demands on Celcom did not appear too significant.

'Assuming the cost of building the DTTB network infrastructure is split equally, Celcom only needs to spend an incremental capex of up to RM83 million per annum on top of its existing RM1 billion planned for 2012,' it said.

The Edge FinancialDaily on Tuesday said Celcom estimated the cost of building the infrastructure for the DTTB network would be RM500 million over three to five years, but the share of investment and stakeholding by Celcom and Broadcast Australia has yet to be determined.

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.