IOI Corporation (IOI MK, NEUTRAL, TP: MYR4.35)
Pulled Down Again By Manufacturing Division
Results Review
IOIC’s 1QFY15 (Jun) results disappointed, due to weaker manufacturing contributions and higher tax rates. We maintain our NEUTRAL recommendation as valuations remain fair at current levels, with no significant share price catalyst in sight, while the impending exclusion from the Shariah Index could result in some overhang. We reduce our SOP-based TP to MYR4.35 (from MYR4.50), implying a 7.5% downside.
Tune Ins Holdings (TIH MK, BUY, TP: MYR3.00)
Lumpy Claims a Temporary Setback
Results Review
9M14 profit of MYR50m, at 63% of our and street estimates, was below expectations due to lumpy claim items and lower earned travel policies from slow international travel growth. Maintain BUY and MYR3.00 TP(24x FY15F EPS, 44.9% upside). We lower our FY14 earnings forecast by 6%. However, we believe these are just temporary setbacks and should not hamper Tune Ins’ swift expansion into a global player.
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