Mah Sing Group - Sales picking up pace
Mah Sing's 9M results were in line with our expectations but above consensus as net profit made up 74% of our full-year forecast and 79% of consensus. It achieved new sales of RM2.45bn, 68% of its full-year target of RM3.6bn. We expect 4Q new sales to be stronger on the back of the conversion of the record bookings achieved in 2H14. Mah Sing has also proposed to undertake a rights issue with free warrants to raise up to RM630m as well as a 1-for-4 bonus. We have tweaked our EPS forecasts for the conversion of ESOS and warrants. We retain our Add call and target basis of parity with RNAV. Mah Sing remains one of our top picks for the sector, with potential re-rating catalysts that include its 1) strong and consistent earnings growth, 2) record sales in the face of tough market conditions, and 3) aggressive landbanking efforts.
YTL Power International - 1Q15 core net profit grew 3.8%
YTL Power's 1Q15 core net profit of RM243.8m was in line with our and consensus estimates, accounting for 24% of our full-year forecast. While revenues declined yoy to RM3.36bn (from RM3.98bn in 1Q14), earnings rose 3.8% yoy due to forex gains in its investment-holding division. No dividends were declared during the quarter, which was expected. We make no changes to our earnings forecasts while our SOP-based target price is reduced to RM2.34 (from RM2.39 previously) as we roll forward our valuation base year. We maintain our Add call on the stock, with new power plant bids and a turnaround of its WiMax division as potential re-rating catalysts.
QL Resources - Strong as usual
QL’s 1HFY54 net profit came in line with our expectation (meeting 47.5% of our full-year forecast) and consensus (45%). We deem this to be in-line as 1H is seasonally weak. 1H revenue rose 10.6% yoy, driven by stronger sales volume and selling prices. Despite higher operating costs, net profit increased by a larger extent of 14.3% yoy, thanks to the lower net interest expense and higher associate profit. Given the in-line results, we maintain our FY15-17 EPS forecasts, Add call and target price, still based on the consumer sector average of 23x CY15 P/E. QL remains our top pick in the sector. The turnaround of its Indonesia, Vietnam, palm oil and shrimp farming businesses is a key potential re-rating catalyst. As we had expected, no dividend was declared, in line with our forecast.
AirAsia X Bhd - Excellent strategic manoeuvres
Bumi Armada - Madura still floats our boat
Eco World Development Group Bhd - Strong start to maiden year
Genting Plantations - Stronger 4Q earnings in store
Kossan Rubber Industries - Non-core punctures 3Q
Oriental Holdings - Forex gain from yen debt
SapuraKencana Petroleum - New kid on the blocks
YTL Corporation - Let's focus on the HSR
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