Stock Name: SPRITZR
Company Name: SPRITZER BHD
Company Name: SPRITZER BHD
| Research House: MERCURY | Price Call: HOLD | Target Price: 0.88 |
January 30, 2012
Carlsberg Brewery (Hold): Brewing Asahi locally
Stock Name: CARLSBG
Company Name: CARLSBERG BREWERY MALAYSIA BHD
Maintain Hold and our DCF-based TP of RM8.30. We are positive on the move to brew Asahi locally, for this should contribute to some margin enhancement over the medium term. In the near term, however, no material impact is expected given that the super premium segment is not a meaningful contributor to overall sales just yet. No dividend policy has been established hence we maintain our net dividend payout assumption of 58-62% for FY12-13 - a net yield of 3.8% for FY12.
Maybank Research 30 January 2012
Click here for full report
Company Name: CARLSBERG BREWERY MALAYSIA BHD
| Research House: MAYBANK | Price Call: HOLD | Target Price: 8.30 |
Maintain Hold and our DCF-based TP of RM8.30. We are positive on the move to brew Asahi locally, for this should contribute to some margin enhancement over the medium term. In the near term, however, no material impact is expected given that the super premium segment is not a meaningful contributor to overall sales just yet. No dividend policy has been established hence we maintain our net dividend payout assumption of 58-62% for FY12-13 - a net yield of 3.8% for FY12.
Maybank Research 30 January 2012
Click here for full report
MIDF Equity Beat (Axiata Group) 30 JANUARY 2012
Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Company Name: AXIATA GROUP BERHAD
| Research House: MIDF | Price Call: BUY | Target Price: 5.85 |
Taking a Slower Pace
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Company Name: PUBLIC BANK BHD
| Research House: OSK | Price Call: HOLD | Target Price: 14.00 |
Up for Privatization
Stock Name: GNEALY
Company Name: GLENEALY PLANTATIONS (M) BHD
Company Name: GLENEALY PLANTATIONS (M) BHD
| Research House: OSK | Price Call: BUY | Target Price: 8.23 |
HLIB Research 30 Jan 2012 (Plantations; Traders Brief)
Stock Name: TWS
Company Name: TRADEWINDS (M) BHD
Stock Name: TSH
Company Name: TSH RESOURCES BHD
Company Name: TRADEWINDS (M) BHD
| Research House: HLG | Price Call: BUY | Target Price: 5.04 |
Stock Name: TSH
Company Name: TSH RESOURCES BHD
| Research House: HLG | Price Call: BUY | Target Price: 2.13 |
Plantations (Neutral)
Highlights from MPOB Seminar
'''' MPOB expects 2012 CPO production in Malaysia to increase to increase to 19.3m tonnes from 18.9m tonnes in 2011 on the back of: (1) Higher FFB yield; (2) Higher OER; and (3) More matured areas coming into production from replanting in 2009. As for Indonesia, industry expert expects CPO production in 2012 to expand to 26m tonnes from 24.55m tonnes in 2011.
'''' Besides having a direct negative impact on refiners' profitability and capacity utilization in Malaysia and India, the revised export taxes for palm products in Indonesia will also have an indirect impact to the upstream segment. This is mainly because India relies heavily on imported CPO for its downstream processing industry, and lower refined palm product prices from Indonesia will further weaken India refiners' price competitiveness and processing margin (of which the country is already suffering from low capacity utilization), hence reducing India's demand for CPO. This in turn means any reduction in the import of CPO from India will raise palm oil stockpile in Malaysia, hence affecting both demand and prices for CPO.
'''' Despite the current economic turmoil, most speakers expect CPO price to sustain at high level. MPOB expects CPO price to average at between RM3,100 and RM3,500 in 2012 assuming: (1) Crude oil price remains at US$100/barrel; and (2) Soybean oil price remains at US$950/tonne.
'''' We are keeping our Neutral stance on the plantations sector, given: (1) The unattractive valuation (in particular, the bigger plantation players) relative to their regional peers; and (2) Our less optimistic view on the downstream segment's fortunes. For exposure in the sector, our top picks are Tradewinds Plant. (BUY; TP: RM5.04) and TSH Resources (BUY; TP: RM2.13).
''
KLCI: Lower liners and penny stocks to shine
'''' Unless KLCI stages a breakout above the 1531 level (31 Dec 11 high), market is likely to consolidate further with attention remain on lower liners and penny stocks as more investors return from CNY holidays. Immediate support is 1500 while resistance are the huge gap between the 1529-1546 levels dated 5 Aug 11.
BPPLAS: Awaiting a neckline resistance breakout
Downside risks are limited with strong potential to rerate higher due to its cheap valuations, in the wake of its savvy management, strong average 4-year net profit margins of 7.6% (TGUAN: 5%; GWPLAST: 6.4%), superior 4-year ROE of 11.7%'' (TGUAN: 6.4%; GWPLAST: 7.4%) and compelling valuations at 6.9x trailing P/E (industry: 8.8x). Ex-cash, BPPLAS is only trading at 3.8x P/E. Moreover, BPPLAS dividend is also the highest at 6.2% against industry 3.1%.
'''' Technically, BPPLAS medium to long term outlooks are positive as weekly and monthly indicators are on the mend. A breakout above RM0.68 (neckline resistance) will spur greater upside towards RM0.74 (61.8% FR) and RM0.83 (76.4% FR). Immediate supports are situated near RM0.58 (38.2% FR) and RM0.60 (weekly mid Bollinger band5). Cut loss below RM0.58.
''
Initiation Report
Stock Name: NHFATT
Company Name: NEW HOONG FATT HOLDINGS BHD
Company Name: NEW HOONG FATT HOLDINGS BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 3.00 |
January 27, 2012
Boustead is a 'Buy', says HwangDBS
Stock Name: BSTEAD
Company Name: BOUSTEAD HOLDINGS BHD
KUALA LUMPUR: HWANGDBS Vickers Research Sdn Bhd has recommended a "buy" for Boustead Holdings Bhd due to its strong growth prospects, driven by all its core divisions.
The research firm said it had raised its ex-bonus target price to RM6.60 after including contribution from a new hotel, rolling over valuation base to financial year 2012 forecast and its new target price for Affin Holdings based on 1.1 times financial year 2012 forecast book value.
"This values Boustead at 12 times the financial year 2012 forecast price earnings and two times price over net tangible assets," it said in its research note today.
Boustead closed trading today at RM5.42, down one sen from RM5.43 yesterday.
According to HWANGDBS, the company had been stoking investor interest over the past two years with a more solid earnings delivery, formal 70 per cent dividend payout policy and a slew of acquisitions in Pharmaniaga Bhd and MHS Aviation.
"Its market capitalisation has visibly increased by almost double to RM5.6 billion, and it has beaten internal key performance indicators for return on equity and dividend per share," the research firm said.
However, HWANGDBS Vickers said Boustead was still undervalued.
"It is trading at 10 times financial year 2012 price earnings and 1.2 times price per net tangible assets currently, despite offering 19 per cent earnings per share compound average growth rate and an attractive 7.6 per cent yield," it added.
It also said Boustead's core divisions businesses were currently on solid ground.
Boustead naval shipyard contract of RM9 billion for six patrol vessels will keep its heavy industries unit busy until 2021.
The RM9 billion contract will provide long-term earnings visibility to BHIC and is set to reap substantial profits from this single largest contract awarded in Malaysia, given its leading roles in weaponry, combat system, vessel design, naval electronics.
"BHIC may also be given a maintenance contract for this batch of vessels, as for the first generation vessels. Strong patronage by the Royal Malaysian Navy will continue to ensure its order book is replenished regularly," the research firm said.
Boustead will also benefit from the rising crude palm oil (CPO) prices as it has about 74,000 hectares of matured estates. Every RM100 per metric tonne increase in the CPO price would raise financial 2012 forecast net profit by three per cent.
The research firm said Boustead's disposal of its 95 per cent stake in the Indonesian plantation business to PT Agro Investma Gemilang for US$38 million, was a good move, as the 8,000 hectares of planted area has been dragging down the group's blended fresh fruit bunches yield. - Bernama
Company Name: BOUSTEAD HOLDINGS BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 6.60 |
KUALA LUMPUR: HWANGDBS Vickers Research Sdn Bhd has recommended a "buy" for Boustead Holdings Bhd due to its strong growth prospects, driven by all its core divisions.
The research firm said it had raised its ex-bonus target price to RM6.60 after including contribution from a new hotel, rolling over valuation base to financial year 2012 forecast and its new target price for Affin Holdings based on 1.1 times financial year 2012 forecast book value.
"This values Boustead at 12 times the financial year 2012 forecast price earnings and two times price over net tangible assets," it said in its research note today.
Boustead closed trading today at RM5.42, down one sen from RM5.43 yesterday.
According to HWANGDBS, the company had been stoking investor interest over the past two years with a more solid earnings delivery, formal 70 per cent dividend payout policy and a slew of acquisitions in Pharmaniaga Bhd and MHS Aviation.
"Its market capitalisation has visibly increased by almost double to RM5.6 billion, and it has beaten internal key performance indicators for return on equity and dividend per share," the research firm said.
However, HWANGDBS Vickers said Boustead was still undervalued.
"It is trading at 10 times financial year 2012 price earnings and 1.2 times price per net tangible assets currently, despite offering 19 per cent earnings per share compound average growth rate and an attractive 7.6 per cent yield," it added.
It also said Boustead's core divisions businesses were currently on solid ground.
Boustead naval shipyard contract of RM9 billion for six patrol vessels will keep its heavy industries unit busy until 2021.
The RM9 billion contract will provide long-term earnings visibility to BHIC and is set to reap substantial profits from this single largest contract awarded in Malaysia, given its leading roles in weaponry, combat system, vessel design, naval electronics.
"BHIC may also be given a maintenance contract for this batch of vessels, as for the first generation vessels. Strong patronage by the Royal Malaysian Navy will continue to ensure its order book is replenished regularly," the research firm said.
Boustead will also benefit from the rising crude palm oil (CPO) prices as it has about 74,000 hectares of matured estates. Every RM100 per metric tonne increase in the CPO price would raise financial 2012 forecast net profit by three per cent.
The research firm said Boustead's disposal of its 95 per cent stake in the Indonesian plantation business to PT Agro Investma Gemilang for US$38 million, was a good move, as the 8,000 hectares of planted area has been dragging down the group's blended fresh fruit bunches yield. - Bernama
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