Welcome to Bursa Malaysia/KLSE Research Summary

Welcome to Bursa Malaysia/KLSE Research Summary

Friday, November 14, 2014

HLIB Research Summary - 14 Nov 2014

Mitrajaya Holdings (BUY çè)
Robust prospects ahead
  • Potential to clinch another contract (RM200-250m) by year end.
  • YTD job wins at a record RM949m, 5th consecutive year of growth (CAGR: 72%).
  • Strong take up for Wangsa 9 after 1st week of launch at 80%.
  • Expect 3Q results (26 Nov) to at least match 2Q.
  • Upside to forecast, maintain BUY (TP: RM1.52), our top small cap construction pick.  
Maxis (HOLD é)
9M14 Results In Line
  • Signs of fruitful transformation as operational data showing some reversals especially in prepaid segment, whereby YTD core net profit of RM1.44bn is within expectations.
  • Declared 3rd interim single-tier tax-exempt dividend of 8 sen per share (3Q13: 8sen), ex-date on 26th Nov 2014.
  • Service revenue was flat qoq breaking the 6 consecutive quarterly declines since 1Q13.
  • Prepaid gained momentum led by #Hotlink as sub base registered a first time net add after 5 continuous quarterly attrition along with ARPU expansion to RM35.
  • Internet remains the main growth driver for mobile revenue, cushioning its cannibalization effects on SMS and WBB’s slowdown.
  • Upgrade from TRADING SELL to HOLD after raising our fair value by 13.3% from RM5.95 to RM6.74 as we rolled over our valuation to FY16.
Traders Brief
Potential mild rebound
  • The overnight record breaking Dow and some signs of bottoming up in hourly and daily charts are likely to spur KLCI to test immediate resistance at 1822 levels today. A decisive breakout above 1822 will lift KLCI higher towards 1833-1840 levels.
  • Key supports are 1812 (50% FR) and 1800. A breakdown below 1800 will spur the index to retest 1778 (76.4% FR) and 1766 (YTD low) levels.
  • Closed position: We had closed our SELL position on UNISEM yesterday after hitting the envisaged S2 levels yesterday.

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