- Merger views unchanged – estimated 11% accretion to FY15 EPS, 19% enhancement to BVPS, 0.9ppt ROE dilution.
- Already have a BUY on RHB (TP: MYR10.45) for exposure to the merger.
- HOLD maintained on CIMB but it is currently a 2% cheaper entry to the merger based on the 1.38 share swap ratio.
Nestle Malaysia: Maintain Hold
Slow and steady Shariah-compliant |
- Nestle’s 9M14 domestic sales rose 5.8% YoY, while export sales declined 13.1% YoY.
- Slip in export sales is not a major concern as the domestic market is still the main earnings driver in the longer term.
- Maintain HOLD with an unchanged DCF-TP of MYR63.60.
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Carimin Petroleum: Not Rated
Proxy to Peninsular HUC |
- The 5-year MYR899m Peninsular Malaysia HUC project underpins Carimin’s forward earnings.
- Earnings are on the uptrend due to expanding margins on ownership of vessels and the absence of minority interest.
- Indicative fair value of MYR1.35 is pegged to CY15 PER of 12x, giving a 23% upside potential.
Technicals: Index creeping up on its rebound
The FBMKLCI rose 2.53 points to 1,825.68 yesterday, but the FBMEMAS and FBM100 closed lower by 22.06 points and 12.74 points. In terms of market breadth, the gainer-to-loser ratio was 285-to-528 while 274 counters were unchanged. 1.58b shares were traded valued at MYR1.79b.
Today's trading idea is a Short-Term BUY CALL on SLP Resources with target price of MYR0.735, MYR1.01 and MYR1.15. |
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