Kenanga: 14 Nov 2014

IDEAS OF THE DAY

l  Results Note: MAXIS

l  Company Update: MPI

l  On Our Technical Watch: ALAM, SUPERMX

NEWS HIGHLIGHTS

l  Econpile secures RM30.0m contract for condominium project

l  51.0% NBPOL stake ideal

l  Pos Malaysia submits proposal for fuel subsidy rationalisation plan

l  Encorp seeks RM68.0m in claims over wrongful termination of contract

l  I-Bhd plans theme park expansion in rural area

FOREIGN NEWS HIGHLIGHTS

l  Alibaba seeking USD8.0b in first U.S. bond sale

l  Buffett's Berkshire Hathaway buys P&G's Duracell

 

ECONOMIC NEWS HIGHLIGHTS (MACRO BITS) 

Global

l  Banks Back G20 Infrastructure Hub

Asia

l  China October Data Shows Economy Cooling Further, Need For More Policy Support

l  Bank Of Korea Keeps Policy Steady In Nov, Dims Rate Cut Outlook

l  Bank Indonesia Holds Rate Before Widodo Fuel-Price Move

l  India And US Reach WTO Breakthrough Over Food

Americas

l  Jobless Claims In U.S. Rose More Than Forecast Last Week

l  Hiring In U.S. Picks Up As Workers Gain Confidence To Quit Jobs

l  U.S. Budget Deficit At $122b In October

l  China, Mexico Eye $7.4b In Investment Funds

Europe

l  Greek Unemployment Eases To 25.9% In August

l  ECB Reiterates Ready To Act As Experts Cut Forecasts

Currencies

l  Yen Drops To 7-Year Low Vs Dollar As Japan Election Talk Picks Up

Commodities

l  Oil Slumps To Four-Year Low As Brent Crashes Below $80 A Barrel

l  Gold Down On Drop In Oil Prices, Bright US Outlook

RHB Research Summary - 27 Oct 2014

Notion (NVB MK, NEUTRAL, TP: MYR0.49) (Upgraded)

Fairly Valued Following Recent Selldown

Company Update

Notion’s share price corrected by >25% since our downgrade in February. Although we foresee earnings headwinds over the near term due to continued weakness in worldwide PC and camera sales, the downside has largely been priced in at current valuations. Hence, we upgrade our call to NEUTRAL with our TP still at MYR0.49 (based on an average of 8x FY15 P/E and 0.6x FY15 P/NTA), implying a 1% upside.

 

 

 

Hua Yang (HYB MK, BUY, TP: MYR2.74)

Landbank Replenishment Still The Main Priority

Company Update

Hua Yang’s management said in a briefing that it will continue to focus on landbanking activities in 2HFY15 (Mar), with the Penang mainland and Kota Kinabalu as potential new target markets. Interestingly, the company expects some buyers to hold off the purchase of new homes until after the GST is implemented.  Nonetheless, it is still targeting MYR1.1bn of new launches for FY15.  Maintain BUY, and a RNAV-based TP of MYR2.74 (15.0% upside).

 

 

 

MPI (MPI MK, BUY, TP: MYR6.34) (Upgraded)

Buy On Weakness

Company Update

Malaysian Pacific Industries’ (MPI) share price has retraced by >25% since August in tandem with the weakness in the local equity market. We think this as an opportunity to buy on weakness as we continue to see positives in the improving industry outlook. Upgrade to BUY, with our TP revised to MYR6.34 from MYR6.40 (15.8x 2015 P/E, 40.9% upside) as we updated our model following the release of its annual report.

Research Summary: 7 July 2014

Research Summary: 7 July 2014

Research House	Type	Company/Sector	Report Title	Rating/Call	Target
CIMB	Sector update	Aviation	Who benefits and who loses from new LCC terminals?	Neutral
CIMB	IPO Note	Tanah Makmur	Prosperous land		RM1.88
CIMB	Flash note	MPI	Exciting times ahead	Add	RM7.00
CIMB	Flash note	E&O	Elmina land acquisition finalized	Add	RM3.06
CIMB	Flash note	Sime Darby	Sells 135 acres of land to E&O	Hold	RM9.85
CIMB	Eco update	Economic	May exports expand 16.3% yoy
Kenanga	Quick bites	Sime Darby	Unlocking asset value	Outperform	RM10.50
Kenanga	Company update	Asia Brands	Expanding cautiously	Market perform	RM4.05
Kenanga	Company update	MPI	Positioned well for next growth wave	Outperform	RM6.03
Kenanga	Eco viewpoint	Economic	Exports increased by 16.3%, imports by 11.9% in May
RHB	Sector Update	Banks	OPR hike mildly positive for banks	Neutral
RHB	Company update	E&O	First wellness township in the Klang Valley	Buy	RM3.60
RHB	News flash	Sime Darby	First collaboration with E&O in Elmina West	Neutral	RM10.40
RHB	News flash	Inari	Surprise cash call	Buy	RM3.49
RHB	Eco highlights	Economic	Supplementary budget but deficit target likely be met
RHB	Eco highlights	Economic	Export growth moderated in May, but remained strong
Maybank	Sector update	Banking	Short-term positive price reaction?	Neutral
Maybank	Company update	Sime Darby	Partners E&O at Elmina Estate	Buy	RM10.30
Maybank	Eco update	Econimic	External trade May 2014: So far so good
Maybank	Technical	Ulicorp		Short-term buy

Research Summary: 24 June 2014

Research Summary: 24 June 2014

 

Research House	Type	Company/Sector	Report Title	Rating/Call	Target
RHB	Company update	MPI	Improving outlook triggers FV upgrade	Buy	RM6.23
RHB	Company update	Sime Darby	Buying Thai soybean crushing facility	Neutral	RM10.40
RHB	Company update	Unisem	Fairly valued for now	Neutral	RM1.56
RHB	News Flash	Perdana	Owing the first mega marine “hotels”	Buy	RM2.20
RHB	News Flash	Airport	Wins arbitration case	Buy	RM9.80
Maybank	Company update	Sime Darby	Buys a small Thailand refinery	Buy	RM10.30
Maybank	Company update	Perdana	On a fleet expansion drive	Buy	RM2.55
Maybank	Sector update	Plantations	Waning El Nino indicators	Neutral	N/A
Maybank	Technical	SEAL		Short-term buy
CIMB	Company visit	NAIM	Time to unlock more value?	NT	N/A
CIMB	Flash Note	Sime	Growing capacity in Thailand	Hold	RM9.85
CIMB	Flash Note	Perdana	Putting two and two together	Add	RM2.40
Kenanga	Quick Bites	CBIP	Guatemalan contract	Outperform	RM4.90
Affin	Flash Note	Perdana	Acquiring 2 accommodation work barges for US$84m	Add	RM2.08
Affin	Company update	Globetronics	On track for another record earnings in FY14	Buy	RM4.82
HL	Newsbreak	Airport	Winner of Maldives Airport arbitrage	Buy	RM10.55
HL	Newsbreak	Sime Darby	Expanding downstream footold	Hold	RH10.02