- 9M14 net profit was below our expectation owing to higher taxes; EBITDA was in line.
- Sequentially higher prepaid subscribers and ARPU signal an end to Maxis’ prepaid woes; postpaid was however a drag.
- Maintain HOLD with an unchanged TP of MYR7.20.
(SINGAPORE) First Resources: Maintain Buy
Weak results priced in |
- 3Q14 results were below our and market expectations on low CPO ASP achieved and higher tax expenses.
- We cut our FY14E EPS by 6.5% to factor in lower CPO ASP and marginally higher effective tax rate assumptions.
- Negatives priced in. Maintain BUY with unchanged TP of SGD2.43 on 15x FY15E P/E.
Technical: Sell any and every rebound rally
The FBMKLCI inched down 0.43 points to 1,815.81 yesterday, while the FBMEMAS and FBM100 also closed lower by 17.11 points and 10.97 points, respectively. We recommend a “Sell on Rallies” stance for the index.
Trading idea is a Take profit call on PENERGY with downside target areas at MYR1.98 & MYR1.45.
Latest News
Plantations: 'PNG govt intends to hold up to 30% stake in NBPOL'. Sime Darby, welcomes the Papua New Guinea government’s intention to raise its stake in the plantation company, said its president and group chief executive Tan Sri Mohd Bakke Salleh. He also mentioned that ideally, Sime Darby would want to own a controlling 51% stake in NBPOL. (Source: The Edge Financial Daily)
Oil & Gas: GE O&G to supply turbomachinery for Petronas' FLNG facility. New York Stock-Exchange listed GE Oil & Gas said it will supply its gas turbine-driven compressor train and mechanical drive technology to Petroliam Nasional for the latter's second floating liquefied natural gas (FLNG) facility that is being developed off East Malaysia. (Source: The Edge Financial Daily)
Sarawak Energy: SEB to invest MYR10b more to build two more hydroelectric dams. Sarawak Energy (SEB) will invest an additional MYR10b to MYR15b in new energy generation projects in the next five years. It is proceeding to build another two major hydroelectric dams to boost power generation capacity. (Source: The Star)
U.S: Jobless claims rose more than forecast last week, representing a pause from a recent run of readings close to a 14-year low. Jobless claims increased by 12,000 to 290,000 in the week ended Nov. 8, the highest since Sept. 20, a Labor Department report showed. (Source: Bloomberg)
China: Slowdown deepened in October as policy makers refrained from economy-wide stimulus, with industrial output and investment trailing estimates. Factory production rose 7.7% YoY, the second weakest pace since 2009, a government report showed. Investment in fixed assets such as machinery expanded the least since 2001 from January through October, and retail sales gains also missed economists' forecasts last month. (Source: Bloomberg)
S. Korea: Central bank kept its key interest rate unchanged at a four-year low, as Governor Lee Ju Yeol weighs the effects of recent cuts in supporting growth that's threatened by a weak yen. The Bank of Korea held the seven-day repurchase rate at 2%, it said in a statement, after lowering it in August and October. (Source: Bloomberg)
Indonesia: Central bank kept benchmark borrowing costs unchanged in its first meeting since President Joko Widodo took office, refraining from tightening policy before the government raises fuel prices. Bank Indonesia Governor Agus Martowardojo and his board left the reference rate at 7.5%, the central bank said, staying on hold for a 12th straight month following 1.75 percentage points of increases in 2013. (Source: Bloomberg) |
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