MIB Research Summary - 30 Oct 2014

Gamuda: Maintain Buy Wins PDP for KVMRT 2, TP raised  Shariah-compliant

Clinching the PDP role for KVMRT 2 significantly enhances its construction orderbook. Further major infrastructure job wins would further elevate its construction orderbook size. We raise our sustainable construction orderbook assumption and revise our RNAV-based TP to MYR6.00 (+13%). Gas Malaysia: Maintain Hold A milder than expected hike?  Shariah-compliant The 2.3% selling price hike appears to be insufficient for a full pass-through of a MYR1.50/mmBTU hike in the purchase price of subsidised gas. Our forecasts are unchanged pending further clarifications from the company. Maintain HOLD with an unchanged TP of MYR3.80. WCT Holdings: Maintain Hold Clinches MYR652m job  Shariah-compliant New MYR652m building construction works lifts outstanding external construction orderbook by 35%. Eyeing more jobs from TRX, RAPID, WCE and Qatar. Positive, but not re-rating our call yet; maintain HOLD with an unchanged TP of MYR2.30. Perdana Petroleum: Maintain Buy Sells Superior, gains MYR1m  Shariah-compliant A decent sale price, MYR1m gain. Proceeds to help part-finance fleet rejuvenation. Lowering 2015-16 earnings forecasts by 2-3%, taking into account this deal. Maintain BUY, but TP adjusted to MYR2.48 (unchanged 15x 2015 PER) from MYR2.55 post earnings revision. Axiata Group: Maintain Buy XL: Weak revenue trends  Shariah-compliant XL’s 9M14 EBITDA was in line at 72% of ours and 71% of consensus full year forecasts; net profit was below. The integration of Axis has been completed; Axis to be EBITDA-neutral by 1Q15. XL’s FY14 earnings are significantly distorted; our BUY rating and MYR7.60 TP for Axiata are unchanged. CIMB Group: Maintain Hold Provisions higher at CIMB Niaga CIMB Niaga’s results below expectations; FY14/15 net profit cut by 34%/20%. CIMB Group earnings trimmed by 8%/6%. TP trimmed to MYR7.40 from MYR7.60 for CIMB Group, to MYR10.20 from MYR10.45 for RHB – still 15% upside for both. BUY RHB for exposure to the merger, HOLD CIMB. IGB REIT: Maintain Hold Earnings on track 9M14 core net profit of MYR176.4m was in line. Maintain our earnings forecasts, MYR1.29 DCF-based TP. Lacks strong asset pipeline to re-rate over the short term; maintain HOLD. Technicals: Index may head to 1,840 and higher The FBMKLCI rose 13.87 points to 1,839.55 yesterday and the FBMEMAS and FBM100 gained 82.22 points and 78.41 points respectively. In terms of market breadth, the gainer-to-loser ratio was 587-to-231 while 280 counters were unchanged. 2.01b shares were traded, valued at MYR2.11b. Today's trading idea is a Short-Term BUY CALL on MMSV with target price of MYR0.59, MYR0.64 and MYR0.81.