MIB Research Summary - 29 Oct 2014

CIMB Group Holdings: Maintain Hold No change in merger views

Merger views unchanged – estimated 11% accretion to FY15 EPS, 19% enhancement to BVPS, 0.9ppt ROE dilution. Already have a BUY on RHB (TP: MYR10.45) for exposure to the merger. HOLD maintained on CIMB but it is currently a 2% cheaper entry to the merger based on the 1.38 share swap ratio. Nestle Malaysia: Maintain Hold Slow and steady  Shariah-compliant Nestle’s 9M14 domestic sales rose 5.8% YoY, while export sales declined 13.1% YoY. Slip in export sales is not a major concern as the domestic market is still the main earnings driver in the longer term. Maintain HOLD with an unchanged DCF-TP of MYR63.60. Carimin Petroleum: Not Rated Proxy to Peninsular HUC The 5-year MYR899m Peninsular Malaysia HUC project underpins Carimin’s forward earnings. Earnings are on the uptrend due to expanding margins on ownership of vessels and the absence of minority interest. Indicative fair value of MYR1.35 is pegged to CY15 PER of 12x, giving a 23% upside potential. Technicals: Index creeping up on its rebound The FBMKLCI rose 2.53 points to 1,825.68 yesterday, but the FBMEMAS and FBM100 closed lower by 22.06 points and 12.74 points. In terms of market breadth, the gainer-to-loser ratio was 285-to-528 while 274 counters were unchanged. 1.58b shares were traded valued at MYR1.79b. Today's trading idea is a Short-Term BUY CALL on SLP Resources with target price of MYR0.735, MYR1.01 and MYR1.15.

RHB Research Summary - 29 Oct 2014

Globetronics (GTB MK, NEUTRAL, TP: MYR4.75)

Prospects Underpinned By Healthy Volumes

Results Review

Globetronics’ MYR49m 9M14 core earnings were within our/street estimates at 77%/76% of FY14 forecasts respectively. With the results largely in line, we maintain our FY14-15 forecasts, NEUTRAL call and MYR4.75 TP (a 12% upside), pegged to an unchanged 17x FY15 target P/E. Going forward, its prospect are underpinned by healthy volume loadings for most of its products.

 

 

Carimin Petroleum (CARIP MK, NR)

New Kid On The Block

IPO Note

Carimin Petroleum is predominantly involved in the provision of support services for the offshore oil and gas industry in Malaysia. The company is one of the HuC umbrella contract holders, given out by Petronas with a current orderbook of MYR900.8m. We value Carimin at MYR1.07, by ascribing a 10% discount to the industry average of 12.1x P/E, pegging Carimin to a 10.9x P/E.