KNM - Tenaga powers KLCI higher, KNM slumps

Stock Name: KNM
Company Name: KNM GROUP BHD
Research House: MAYBANK

KUALA LUMPUR: Tenaga Nasional helped power the FBM KLCI to a higher close at midday on Friday, May 27 on hopes of revised tariff by government during the National Economic Council meeting scheduled for Friday.

Key regional markets were also higher in the morning session, with Reuters reporting that investors were on a bargain hunting after the recent falls while the euro advanced.

At 12.30pm, the FBM KLCI was up 7.49 points to 1,548.43. Turnover was 447.13 million shares valued at RM692.33 million. There broader market was weaker with losers beating gainers 395 to 246 while 279 stocks were unchanged.

Tenaga up 22c to RM6.52 midday, on hopes of revised tariff by government.'' Among PLANTATION []s, KLK rose 30 sen to RM22.18, PPB 18 sen to RM17.70 and Batu Kawan 18 sen also to RM16.44.

Genting's strong set of earnings saw the shares climb 12 sen to RM11.22 while among the banks, HLFG rose 20 sen to RM11.70 and HL Bank 18 sen to RM12.08.

Among the losers, KNM fell 30 sen to RM2.23, the biggest one day loss in recent months after a poor set of first quarter earnings as investors ignored news of its RM217 million Uzbek contract.

MIDF Research maintained a Buy on KNM with a target price of RM3.20 while Maybank Investment Bank Research was more optimistic, keeping NMN as Buy with an unchanged target price of RM3.20.

Perstima was the top loser, down 47 sen to RM4.70 after its fourth quarter net profit fell sharply to RM6.49 million from RM26.62 million a year ago.

Other decliners were F&N, down 22 sen to RM19.28 in thin trade, Cypark shed 14 sen to RM2.06 and MSC 10 sen to RM5.39.

KNM - Tenaga powers KLCI higher, KNM slumps

Stock Name: KNM
Company Name: KNM GROUP BHD
Research House: MIDF

KUALA LUMPUR: Tenaga Nasional helped power the FBM KLCI to a higher close at midday on Friday, May 27 on hopes of revised tariff by government during the National Economic Council meeting scheduled for Friday.

Key regional markets were also higher in the morning session, with Reuters reporting that investors were on a bargain hunting after the recent falls while the euro advanced.

At 12.30pm, the FBM KLCI was up 7.49 points to 1,548.43. Turnover was 447.13 million shares valued at RM692.33 million. There broader market was weaker with losers beating gainers 395 to 246 while 279 stocks were unchanged.

Tenaga up 22c to RM6.52 midday, on hopes of revised tariff by government.'' Among PLANTATION []s, KLK rose 30 sen to RM22.18, PPB 18 sen to RM17.70 and Batu Kawan 18 sen also to RM16.44.

Genting's strong set of earnings saw the shares climb 12 sen to RM11.22 while among the banks, HLFG rose 20 sen to RM11.70 and HL Bank 18 sen to RM12.08.

Among the losers, KNM fell 30 sen to RM2.23, the biggest one day loss in recent months after a poor set of first quarter earnings as investors ignored news of its RM217 million Uzbek contract.

MIDF Research maintained a Buy on KNM with a target price of RM3.20 while Maybank Investment Bank Research was more optimistic, keeping NMN as Buy with an unchanged target price of RM3.20.

Perstima was the top loser, down 47 sen to RM4.70 after its fourth quarter net profit fell sharply to RM6.49 million from RM26.62 million a year ago.

Other decliners were F&N, down 22 sen to RM19.28 in thin trade, Cypark shed 14 sen to RM2.06 and MSC 10 sen to RM5.39.

GENM - OSK maintains 'neutral' call on Genting

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD
Research House: OSK

OSK Research is maintaining a "neutral" stance on Genting Malaysia (GENM) despite the group reporting improved results in the first quarter of the year.

"The group's first quarter earnings represented 27.7 per cent and 28.8 per cent of consensus and our full year forecasts.

"We deem the results to be in line with estimates as the first quarter is seasonally the strongest quarter, with the UK gaming operation benefitting from an above average luck factor, but still remains volatile and could normalise in the ensuing quarters," OSK Research said in a research note today.

It still preferred parent company, Genting Bhd, which is trading at a similar price to earnings ratio, but had a better growth rate on top of its exposure to the entire group's global casino operations, and value unlocking potential of its non-core gaming assets.

Meanwhile, MIMB Investment Bank is recommending a "Buy" with a new target price of RM4.26 for GENM, following continued resilient local earnings coupled with impressive numbers contributed by its UK casino operation.

"On the back of New York new site to be operational coupled with improving UK operations, we are now turning bullish on GENM," it added. -- Bernama

MRCB - MRCB could get RRIM land job: OSK

Stock Name: MRCB
Company Name: MALAYSIAN RESOURCES CORP
Research House: OSK

Malaysian Resources Corporation Bhd (MRCB) could be selected to undertake the development of the Rubber Research Institute
(RRIM) land in Sungai Buloh, Selangor.

"We believe this will be an upside catalyst for MRCB," OSK Research Sdn Bhd said in a research note today.

It maintained a trading "buy" recommendation on MRCB at an unchanged fair value of RM2.58. -- Bernama

GENM - Genting downgraded to 'hold' at Maybank

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD
Research House: MAYBANK

Genting Malaysia Bhd, a gaming group, was downgraded to “hold” from “buy” at Maybank Investment Bank Bhd. The stock is now close to Maybank’s share estimate of RM3.52, analyst Yin Shao Yang wrote in a report today. -- Bloomberg

GENTING - Genting cut to 'hold' at ECM Libra

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

Genting Bhd, a Malaysian gaming and plantations group, was downgraded to “hold” from “buy” at ECM Libra Capital Sdn Bhd.

“Strong” growth at its Singapore casino resort has already been priced in, ECM Libra analyst Bernard Ching wrote in a report today. -- Bloomberg

NAIM - Naim at 18-month low, its fair value cut

Stock Name: NAIM
Company Name: NAIM HOLDINGS BHD
Research House: AMMB

Naim Holdings Bhd, a Malaysian construction company, fell to an 18-month low in Kuala Lumpur trading after reporting lower first-quarter earnings and AmResearch Sdn Bhd cut its fair value for the stock to RM4.46.

Its shares fell 1.2 per cent to RM2.48 at 9:25 a.m. local time, set for its lowest close since December 2009. -- Bloomberg

PCHEM - Petronas Chem earnings forecast raised

Stock Name: PCHEM
Company Name: PETRONAS CHEMICALS GROUP BHD
Research House: OSK

OSK is upgrading Petronas Chemicals Group's 2012 financial year earnings forecast by 28 per cent based on expectations that current oil prices will sustain, which will, in turn, buoy the prices of chemicals products.

"Financial year 2011 were above expectations. We are upgrading our financial 2012 earnings forecast in line with the better outlook for the company.

"We continue to like the company's strong backing from Petronas group, especially in keeping its feedstock prices low, as well as, attractive dividend payout ratio of 50 per cent, which is the highest among its closest peers," it said in a research note today.

OSK maintained a "buy" on the company.

However, it said the company is still subject to uncontrollable factors which included fluctuations in the international price of petrochemical products, global economic conditions and utilisation of its production facilities based on demand.

Meanwhile, AmResearch, which maintained a "buy" on Petronas Chemicals, said the current Middle East political turmoil had pushed crude oil prices back to the US$100 per barrel threshold.

"As petrochemical prices have a high correlation to naphtha, which is a by-product of oil refining, we are sanguine about the company's earnings outlook," it said. -- Bernama

GENTING - Genting advances, boost from strong earnings

Stock Name: GENTING
Company Name: GENTING BHD
Research House: CIMB

KUALA LUMPUR: Shares of GENTING BHD [] advanced in early trade on Friday, May 27 after it reported a strong set of earnings in the quarter ended March 31, 2011.

At 9.14am, it was up 14 sen to RM11.24 with 173,600 shares done.

The FBM KLCI was up 5.26 points to 1,546.20. Turnover was 52 million shares valued at RM52.31 million. There were 113 gainers, 94 losers and 127 stocks unchanged.

Genting Bhd's net profit surged 254% to RM824.17 million in the first quarter ended March 31 from RM232.43 million a year ago when the net profit then was affected by net impairment losses.

Revenue rose 57.2% to RM4.89 billion from RM3.11 billion while earnings per share were 22.25 sen compared with 6.29 sen. The group's profit before tax in 1QFY11 was RM1.9 billion compared with RM200.0 million in 1QFY10.

CIMB Equities Research said Genting Bhd's 1Q11 core net profit accounted for 27% of its full-year forecast and 29% of consensus numbers.

'We regard it as being largely in line with our expectations as earnings should normalise after the seasonally strong 1Q. However, the 1Q results beat consensus estimates, courtesy of Resorts World Sentosa's (RWS) stronger-than-expected win rate.

'We are keeping our FY11-13 core EPS forecasts and SOP-based target price of RM15.40. The stock remains an OUTPERFORM and our top pick in our gaming universe,' it said.

PCHEM - OSK Research upgrades FV for PetChem

Stock Name: PCHEM
Company Name: PETRONAS CHEMICALS GROUP BHD
Research House: OSK

KUALA LUMPUR: OSK Research has upgraded its fair value for Petronas Chemicals Group Bhd to RM9.28 (previously RM7.26) based on the existing PER of 18x FY12 EPS following its FY12 earnings upgrade.

'We like the company's strong backing from Petronas Group, especially in keeping its feedstock prices low, as well as attractive dividend payout ratio of 50%, which is the highest among its closest peers,' it said on Friday, May 27.

OSK Research said PetChem's FY11 results were above expectations owing to the higher sales and better prices for its petrochemical products.