Harvesting more palm fruits

Stock Name: TAANN
Company Name: TA ANN HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.98

Valuation still attractive

Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD

Research House: MIDF

Price Call: BUY

Target Price: 2.48

Challenging times ahead

Stock Name: F&N
Company Name: FRASER & NEAVE HOLDINGS BHD

Research House: MIDF

Price Call: SELL

Target Price: 14.00

Slow growth of plantation landbank

Stock Name: SIME
Company Name: SIME DARBY BHD

Research House: ECMLIBRA

Price Call: HOLD

Target Price: 9.82

HLIB Research 8 February 2012 (Construction; GenM; Traders Brief)

Stock Name: GAMUDA
Company Name: GAMUDA BHD

Research House: HLG

Price Call: BUY

Target Price: 4.41

Stock Name: MRCB
Company Name: MALAYSIAN RESOURCES CORP

Research House: HLG

Price Call: BUY

Target Price: 2.64

Stock Name: SUNWAY
Company Name: SUNWAY BERHAD

Research House: HLG

Price Call: BUY

Target Price: 3.12

Stock Name: MUDAJYA
Company Name: MUDAJAYA GROUP BHD

Research House: HLG

Price Call: BUY

Target Price: 4.61

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD

Research House: HLG

Price Call: HOLD

Target Price: 4.07

Construction (OVERWEIGHT)

Relook into Gamuda and MRCB's valuation

'''' YTD, KLCON Index is up +9.8% vis-''-vis the KLCI's +0.5%. We believe that the strong outperformance is due to improved newsflow for the sector and return of risk appetite from investors.

'''' Gamuda and MRCB have seen their existing TP of RM3.81 and RM2.22 breached respectively. Hence, this report relooks into both companies' valuation as to where it may potentially touch if things materialise as planned.

'''' We upgrade Gamuda's TP by 16% to RM4.41 from RM3.81 and MRCB's TP by 19% to RM2.64 from RM2.22 to take advantage of the current buoyant sentiment in the construction sector, which tends to result in share prices overshooting. However, we caution that our newly assigned TP will be revised downwards if things do not pan out as planned.

'''' We MAINTAIN our OVERWEIGHT stance on the sector as we believe that more ETP projects should materialise this year to mitigate slowing economic growth.

'''' Top Picks in order of preference:

Sunway (TP: RM3.12)

Gamuda (TP: RM4.41)

Mudajaya (TP: RM4.61)

MRCB (TP: RM2.64)

''

Genting Malaysia (HOLD)

Destination Resort Bill Stalled

'' According to Reuters, the legislation that would allow three new resort-style casinos in Florida has been withdrawn before a House subcommittee could hold their vote. The bill has failed to pass at least one committee; hence the measure is dead for 2012.

'' This has turned out to be a disappointment for GenM. However, GenM's RWM remains positive with its mission to build a destination resort in Florida and will continue to work with the legislature and community to bring this mission into reality.

'' If the legislation is not approved, GenM will still continue with the US$3.8bn development, spreading it across 10-15 years. With this, GenM will incure approximately US$253-380m additional capex p.a., which should not be an issue given its net cash of RM2.2-4.8bn and free cash flow of RM0.8-1.8bn in FY11-13.

'' No changes made to our forecast. Maintain HOLD with TP of RM4.07.

''

KLCI: To retest 1550 zones after the 1530 breakout

'''' As KLCI continued to stay decisively above the major SMAs support levels, it is poised to unfold a follow-through rebound. Following last week's rally that partially filled the large gap of 1,529-1,546 pts, the index may continue its ascending trend today to retest immediate resistance target at 1550.

'''' Immediate supports are Immediate supports are 1530 (31 Dec 11), 10-d SMA (1523) and 1520 (mid Bollinger band).

''

RCECAP: More technical rebound ahead

'''' Technically, RCECAP short to medium term outlooks are positive as daily, weekly and monthly charts (FIG#3, 4 & 5) are strengthening. The strong breakout of the neckline resistance near RM0.52 will spur greater upside towards RM0.55-0.58 targets. Post RM0.58, more formidable resistance is RM0.62 (76.4% FR). Immediate supports are situ RM0.48 (30-d SMA), RM0.47 (100-d SMA) and RM0.46 (daily lower Bollinger band).

'''' Cut loss below RM0.46.''

RHBInvest Research Highlights 08th February 2012

Stock Name: UNISEM
Company Name: UNISEM (M) BHD

Research House: RHB

Price Call: HOLD

Target Price: 1.53

Stock Name: MPI
Company Name: MALAYSIAN PACIFIC INDUSTRIES

Research House: RHB

Price Call: HOLD

Target Price: 3.47

08th February 2012

 

Top Story

Indonesia Banks ' All Set For Lift Off                                                        Overweight (Upgraded) Sector Update Bank Rakyat ' Fair value IDR8,200                                                            Outperform (Upgraded) Bank Mandiri ' Fair value IDR7,900                                                           Outperform (Upgraded) BCA ' Fair value IDR7,500                                                                   Market Perform (Upgraded) Bank Danamon ' Fair value IDR5,500                                                        Outperform (Upgraded)

Sector Update

Semiconductor ' Dec chip sales slips, but more upbeat outlook                                           Neutral Sector Update Unisem ' Fair value raised to RM1.53 based on 1x forward FY12 P/BV                     Market Perform MPI ' Fair value maintained at RM3.47 based on 1x forward CY12 P/BV                    Market Perform

Corporate Highlights

CIMB ' 2011 ROE to end up between 16-17%                                                            Underperform Company Update -          CIMB held a small group meeting for analysts last Friday. -          For APH, the main focus was to find investors to complete the project. No further provision required at this juncture and although the loan has not been fully provided for, the balance required is not much while the upside from recoveries could be quite decent.    Genting Malaysia ' Hitch In Miami Casino Gaming Law Approval                                   Outperform Company Update -          Genting Malaysia's plans to build a US$3.8bn 5,200-room resort overlooking Miami's Biscayne Bay has stalled, as a Florida House of Representatives committee postponed a vote on a bill to expand casino gambling.   Wah Seong ' Transforming The Renewable Energy Division                                     Market Perform News Update -          The company announced that its wholly-owned subsidiary has entered an agreement to purchase 51% of Atama Resources for US$25m (approximately RM76.3m). Atama Plantation has a 30-year concession agreement to develop an oil palm plantation and industrial complexes on 470,000 hectares of federal land in Congo .

On an exciting growth path

Stock Name: DRBHCOM
Company Name: DRB-HICOM BHD

Research House: AMMB

Price Call: BUY

Target Price: 4.00

FY11F earnings expected to be in line

Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD

Research House: AMMB

Price Call: BUY

Target Price: 8.00

Beyond near-term headwinds

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD

Research House: AMMB

Price Call: BUY

Target Price: 6.08

Not Surprised by MARC's Rating Watch

Stock Name: KINSTEL
Company Name: KINSTEEL BHD

Research House: OSK

Price Call: TRADING BUY

Target Price: 0.66