December 6, 2011
CIMB Research has technical buy on K. Euro at RM1.06
Company Name: KUMPULAN EUROPLUS BHD
| Research House: CIMB | Price Call: TRADING BUY | Target Price: 1.06 |
KUALA LUMPUR (Dec 6): CIMB Equities Research has a technical buy on Kumpulan Europlus at RM1.06 at which it is trading at a price to book value of 5.4 times.
It said on Tuesday that Kumpulan Europlus is still trading within its consolidation triangle pattern. If prices can continue to hold above its 30-day and 50-day SMAs, then a breakout to higher levels is likely.
'Technical landscape is neutral with both the MACD and RSI showing little signs of life, which is in line with the triangle view.
'Since the prior trend before the triangle is up, the odds favour the bulls here. Buy now with a tight stop placed below RM1.01. The likely breakout could send prices shooting towards RM1.18 and RM1.20 next,' it said.
''
RHB Research has Outperform on Jaya Tiasa, Ta Ann
Company Name: JAYA TIASA HOLDINGS BHD
| Research House: RHB | Price Call: BUY | Target Price: 6.71 |
Stock Name: TAANN
Company Name: TA ANN HOLDINGS BHD
| Research House: RHB | Price Call: BUY | Target Price: 6.49 |
KUALA LUMPUR (Dec 6): RHB Research Institute said the build-up in plywood inventory in Japan is easing with low arrivals of import since September.
It said on Tuesday that generally, plywood prices are firming, although demand is not strong enough to push up prices up very much.
For log, prices have remained firm due to robust demand from India amid seasonal low log production period in Sarawak currently.
'We maintain our Neutral call on the sector as we remain cautious that the recovery in Japan housing starts could stall due to a protracted slowdown in the global economy.
'Nevertheless we still like Jaya Tiasa (Outperform, FV RM6.71) and Ta Ann (Outperform, FV RM6.49) as there will be significant boost to their earnings from PLANTATION [] going forward due to rising fresh fruit bunches production volume and favourable crude palm oil prices,' it said.
December 5, 2011
Glomac (Hold): Building warchest for landbanking
Company Name: GLOMAC BHD
| Research House: MAYBANK | Price Call: HOLD | Target Price: 0.88 |
Maintain Hold. Glomac's RM35m 1HFY12 core net profit accounted for 45% of our and consensus full-year estimates. With close to RM50m (8.6sen/sh) net cash, Glomac is in a good position for accretive landbanking opportunities. We raise FY13-14 earnings forecasts by 4% and RNAV by 2sen. We now value Glomac at RM0.88 on a lower 40% discount (previously 50%). The formalization of BNM's prudent lending guidelines should remove surrounding policy risk.
Maybank research (5 December 2011)
Click here for full report
Proposed Capital Reconstruction And Settlement Scheme By LionCorp
Company Name: LION INDUSTRIES CORPORATION
| Research House: RHB | Price Call: SELL | Target Price: 1.19 |
Malakoff inks PPA with TNB
Company Name: MMC CORPORATION BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 3.10 |
Progressing Well
Company Name: SEG INTERNATIONAL BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 2.35 |
3Q11 results review
Company Name: TRC SYNERGY BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.80 |
HLIB Research 5 Dec 2011 (Market View; Tenaga; Glomac; Traders Brief) (Part 1/2)
Company Name: TENAGA NASIONAL BHD
| Research House: HLG | Price Call: HOLD | Target Price: 6.00 |
Stock Name: GLOMAC
Company Name: GLOMAC BHD
| Research House: HLG | Price Call: BUY | Target Price: 0.87 |
CY3Q11 Report Card
Disappointing But Revision Ratio Improved
'''' 'disappointed again but HLIB's revision ratio improved. ''Earnings risk persists but expectations toned down to levels less susceptible to shocks.
'''' Sectors that disappointed were Building Materials, Conglos, Construction, Property, Technology and Transportation.''
'''' Only the Gaming and Plantation sectors were ahead, Plantation continued to exceed expectations.
'''' Axiata, Genting Ml, Notion, TM and TSH cut to Hold while KLK is now a Sell.'' Only upgrade was JCY to Hold.
'''' HLIB's revision ratio improved to 1.3x (i.e. for every earnings upgrade, there were 1.3 downgrades) vs. 2.4x.''
'''' 2011 EPS growth forecasts cut to 6.3% vs. 6.8% but due to lower base, 2012 EPS growth is higher at 10.6% vs. 10%.
'''' Sentiment improved after major central banks provided liquidity support, VIX now below 30.
'''' However, progress towards resolving the EU debt woes are expected to be slow and with hiccups along the course.''
'''' With minor changes to our EPS growth, we maintain our end 2011 and 2012 FBM KLCI targets (unchanged 13x 1-year forward P/E) at 1,440 and 1,555 respectively.
'''' Although the market could overshoot in the short-term, we are keeping our defensive stance at this juncture and our preferred defensive picks are AFG, Boustead, BToto, Genting Mal, Maybank, MRCB, Sunway and TM.''
''
Tenaga (HOLD)
Official PPA between TNB and Tanjung Bin
'''' Tenaga has officially signed (PPA) Power Purchase Agreement with Tanjung Bin Energy (100% owned by Malakoff), for the 1,000MW coal power plant, for 25 years starting from the commercial operational date. The expected date is 1 March 2016.
'''' Similar to other power plants, the coal fuel will be supplied by TNB.
'''' We are positive on the news, for Tenaga will need to secure adequate power generation capacity to meet the annual 4-5% growing power demand in Peninsular Malaysia.
'''' Furthermore, coal energy could be the cheapest fuel energy to produce power by 2016, which is only ~14.5sen/kWh (assuming coal price at USD115/mt or RM345/mt) for natural gas price for power industry, is expected to rise gradually from current level of RM13.70/mmbtu to RM40.70/mmbtu by end 2015. Thus, natural gas energy will eventually cost ~40sen/kWh, more expensive than coal energy, but still cheaper than alternative energy costing 50-60sen/kWh.
'''' Maintain TP at RM6.00 (based on unchanged DCFE) and our Hold recommendation.
''
Glomac (BUY)
Rolling Out Heavy Projects In Petaling Jaya
'''' 1H FY12 net profit of RM41.6m was in-line with both HLIB and consensus estimates (51% of full -year forecast).
'''' 2Q net profit rose 33% qoq and 49.7% yoy thanks to a one-off RM8.6m disposal gain arising the sale of their 49% stake in their Thailand associate (WHA Glomac Alliance Company Limited).
'''' Glomac is current undergoing a soft patch in earnings following the completion of Glomac Tower, and now relies on Glomac Damansara Residences as its main earnings contributor.
'''' Next two key projects are in Bandar Utama and Mutiara Damansara, slated to launched in early 2012, with combined GDV of ~RM800m.
'''' Maintain our forecast, TP (RM0.87, 50% discount to RNAV), and BUY call, but we put our numbers under review.''
''
KLCI: More sideways trading after surging 4% wow
'''' The KLCI's strong weekly gains of 4% has overcome resistances of mid Bollinger band & 30-d SMA (now at 1464 pts), 50-d SMA (at 1437) and 100-day SMA (1473 pts), signalling a shift in market momentum. Nevertheless, the sighting of Doji stars on daily chart could indicate high possibility for a short-term peak coinciding with the key and strong 200-day SMA (1503 pts) resistance.'' This could see the index pull back and cover last Thursday's gap of 1472-1502 pts before more buying interest returns.
UOADEV: Getting oversold
'''' Based on daily chart, we reckon that UOADEV is likely to find a short term bottom near RM1.38 (38.2% FR). Stronger support is RM1.30 (23.6% FR). After a brief consolidation, the next upswing is expected to push prices towards its mid Bollinger band (RM1.50) and 30-d SMA (RM1.54). Stronger resistance is seen at RM1.65 (upper Bollinger band). ''