Pricing Of Rights Shares Fixed
Corporate News Flash
Inari Amertron has finalised rights issue pricing at MYR1.50 per rights share. The free warrants attached to the rights share are priced at MYR2.00 exercise price. We believe the proceeds raised from the rights issue could help to expand its core businesses to propel earnings growth in the medium term. Hence, we maintain BUY and keep our TP at MYR3.82 (or MYR3.10 fully diluted ex-rights), implying a 41.5% upside.
TAS Offshore (TOC MK, BUY, TP: MYR1.42)
Margins Decline Drastically Despite Revenue Surge
Results Review
1QFY15 QoQ revenue came in at 24% of our full-year target but bottomline was at 18% of our FY15 estimate. YoY, revenue surged 157% but core net margins declined to 7%. Maintain BUY with a lower MYR1.42 TP (a 67.1% upside), pegged to 9.5x FY15F P/E. The improved results were on higher sales recognition on vessels delivered. We lower our FY15-16 margins assumption and revise net profit down by 5-11%.
CapitaMalls Malaysia Trust (CMMT MK, NEUTRAL, TP: MYR1.41)
No Spark To Ignite Yet
Results Review
CMMT’s 9MFY14 came in within expectations at 72/71% of ours/consensus estimates. A decent DPU of 2.12 sen was declared. Earnings growth continued to be affected by Sg. Wang Plaza’s decline due to the ongoing MRT construction works. We note that CMMT’s upcoming change of guard on 1 Nov is unlikely to have an impact on future performance. Maintain NEUTRAL and DDM-based TP of MYR1.41.
Daibochi (DPP MK, NEUTRAL, TP: MYR4.10)
Earnings Slip Yet Again
Results Review
Daibochi’s 9M14 earnings of MYR17.8m were below expectations. Despite a 13.2% YoY surge in 9M14 sales, earnings declined 13.1%, largely due to higher raw material prices since 2H13. We retain our forecasts pending an analyst briefing today. Daibochi’s valuations are not compelling at this juncture. Maintain NEUTRAL and MYR4.10 TP, pegged to an unchanged 13x P/E 2015 EPS (a 3.5% downside).
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