Kenanga - 21 Nov 2014

IDEAS OF THE DAY

l  Sector Update: Automotive

l  Results Note: AEON, ALAM, CBIP, GENP, KOSSAN, MAHSING, POS, QL, RHBCAP, TGUAN, YTLPOWR

l  Quick Bites: SKPETRO

l  On Our Technical Watch: CYPARK, SMRT

NEWS HIGHLIGHTS

l  IJM secured RM355.7m building jobs (Comments included in Kenanga Today)

l  KPJ gets nod for RM1.5b sukuk scheme

l  BDB unit to complete 323 PR1MA houses

l  MUI shares suspended

l  RM420.0m financing for MRCB unit

FOREIGN NEWS HIGHLIGHTS

l  Janus says Soros’s Quantum puts USD500.0m with Gross

l  GoDaddy aims to list next year, seeks USD4.5b valuation

 

ECONOMIC NEWS HIGHLIGHTS (MACRO BITS) 

Asia

l  Japan’s Exports Rise Most In 8 Months In Recovery Sign

l  China Manufacturing Activity Hits Six Month Low

USA

l  U.S. Factory Activity Growth Slips In November: Markit

l  U.S. Underlying Inflation Rising; Economy Firming Broadly

l  U.S. Jobless Claims Fall; Continuing Claims Lowest Since 2000

l  U.S. Existing Home Sales Hit One-Year High In October

l  Leading Economic Indicators In U.S. Rise More Than Forecast

Europe

l  Euro-Area Growth At Risk As Factories, Services Weaken

l  Euro Zone Consumer Confidence Falls In November

l  French Business Slump Eases Slightly In November But New Business Drying Up: PMI

l  UK Retail Sales Rose By 0.8% In October As Prices Fell

Currencies

l  Dollar Falls From Seven-Year High Against Yen

Commodities

l  Oil Up After 3-Day Loss On Strong U.S. Data, OPEC Cut Speculation

l  Gold Rises As Price Drop Tempts Physical Buyers

HLIB Research Summary - 21 Nov 2014

Automotive (NEUTRAL  çè)

Rebound in Oct, Driven by Perodua

• Oct TIV rebounded mom to 54.3k units (-1.6% yoy; +13.4% mom) from maiden contribution of Perodua Axia. YTD, TIV was 546.5k units (+0.6% yoy). We expect stronger sales in Nov & Dec, driven by Perodua Axia and Proton Iriz, as well as aggressive campaigns by foreign OEMs.
• Perodua reported strong sales of 17.7k units (+13.8% yoy; +46.0% mom) due to deliveries of newly launched Axia.
• Proton sales disappointing at 8.1k units (-37.2% yoy; +1.0%mom), due to mass production hiccups.
• YTD, Toyota and Nissan sales was relatively weak, behind FY14 sales target, while Honda is on track to achieve its FY14 target.
• Maintained NEUTRAL on automotive sector with top picks: MBM (TP: RM4.00) and DRB (TP: RM3.00).

SapuraKencana (BUY çè)

Expanding Reserves..

• SKP announced to acquire three blocks of oil assets from Petronas Carigali in Vietnam with total purchase consideration of US$400m.
• SKP also awarded PSC for Block SB331 and SB332 onshore Sabah with participating interest of 70%
• We expect the Vietnam acquisitions to increase 2P oil reserves by 80% to 39mm boe.
• Assuming net production of 11k bbl/d from Vietnam asset with oil price at US$80/bbl, we estimate it to contribute ~13% to FY01/16 bottomline.
• Maintain BUY call with an unchanged TP of RM4.26 based on unchanged 16x FY01/16 EPS of 26.6 sen/share.  

RHB Cap (BUY çè)

Growth Traction Gained Momentum

• 9MFY14 results in line with HLIB and consensus.
• Strong 3Q on sustained double-digit loans growth, stronger non-interest income (+24% qoq) and wider sequential JAW. 
• 9MFY14 ROE slightly below KPI but it is not changing as momentum in 3Q to sustain into 4Q, absence of additional provision and lower credit charge vis-à-vis earlier guidance.
• RHB-OSK integration on track to exceed initial synergy projection.  Coupled with new transformation (IGNITE 2017) progressing well, both has already contributed to the traction in Islamic and non-interest income growth.
• M&A with CIMB and MBSB to benefit the group and its shareholders.  Dedicated team to deal with integration to ensure BAU momentum is sustained
• Asset quality continued to improve with comfortable capital ratios.           
• Target price maintained at RM10.00 or 1.4x merger P/B (vs. RM10.028 merger valuation).  Maintain BUY.

YTLP (SELL ê)

1Q15 Within Expectations

• Within Expectations - Reported 1QFY06/15 core earnings of RM254.6m, accounting for 27.9% of HLIB and 24.0% of consensus.
• Main concern on the margin compression for Singapore Seraya Power (due to market overcapacity) and UK Wessex Water (regulatory reform to cut return on WACC).
• We believe the possibility of concession extension of domestic power plants relatively low.
• Given the continued earnings risk and lack of catalyst, we downgrade YTLP to SELL (from Hold) with unchanged Target Price of RM1.44, based on 10% discount to SOP.

Bumi Armada (BUY çè)

• Slightly Below mainly due to slower progress recognition of Kraken and Angola projects.
• Currently, Bumi is targeting 3 major FPSO bids in Ghana , Nigeria and Namibia and expects the result of tenders to be known by 1QFY15.
• FY14 earnings adjusted downward by 7% to reflect slower earnings recognition for Kraken and Angola projects under finance lease and lower margin for T&I.
• We maintain our BUY call with TP reduced from RM2.06 to RM1.74 based on SOP valuation method following adjustment to the group net debt position and lower value from T&I segment.

Genting Plantations (HOLD çè)

Within our expectation

• 9MFY14 core net profit of RM235m (+21.9%) came in within our expectation, accounted for 75.7% of our full-year forecast.
• We nudged up our FY15-16 net profit forecasts by 2.1-2.5%, largely to account for earnings contribution from the biodiesel production.
• SOP-derived TP raised by 10.4% to RM10.50 to reflect higher net profit forecasts and its latest net cash position. Maintain HOLD recommendation.  

Aeon (HOLD çè)

3QFY14: Well below expectations

• Below expectations – Aeon’s revenue of RM2733.8m (+6% yoy) translated into core earnings of RM123.3m (excluding RM14.2m exceptional gain occurred in previous quarter) came in well below our expectations, accounting for 53% of ours and 52% of streets’ full year estimates.
• YTD core net profit was depressed by 21% yoy, largely due to (1) higher utilities costs resulting from the electricity tariff hike; (2) greater initial start-up costs from the opening of new stores; (3) Aeon’s 30th anniversary promotional costs; and (4) higher marketing costs that was needed to boost consumer spending.
• Cut FY14, FY15, FY16 earnings by 25%, 12% and 10%, respectively, to reflect the short term macro headwinds, weak business and consumer sentiment as well as higher than expected operating costs.
• As a result, TP slashed by ~12% to RM3.42 pegged to unchanged 21.9x P/E FY15 EPS of 15.6 sen, based on 1 SD above 3-year historical average. Maintain HOLD.

Mah Sing (BUY çè)

9MFY14 Results & Corporate Exercises

• MSGB’s 9MFY14 PATAMI of RM254.7m came in within expectations.
• MSGB achieved property sales of circa RM2.45bn YTD. It has also grown its landbank by 1,134 acres, bringing the group’s undeveloped land bank to 3,658 acres with GDV of RM44.8bn. Unbilled sales stood at an outstanding RM5.1bn, representing 2.94x of FY13 property revenue.
• MSGB also proposed (1) renounceable rights issue with free detachable warrants to raise up to RM630m; and (2) a 1 for 4 bonus issue following the rights issue.
• Based on the indicative scenario of 3 rights for every 10 MSGB shares, there will be a total of 442.7m rights issued. This will result in dilution of FY14-15 EPS by 16.6% and 1101% while RNAV will be diluted by 13.8%.
• However, this is expected to be mitigated by the potential earnings from the launch of the development in Puchong (1HFY15) and Seremban (2HFY15).
• Gearing will be lowered significantly to 0.13x from 0.37x, allowing more room to gear up. The expected completion for the proposed rights issue with free warrants and bonus issue are by 1QFY15 and 3QFY15, respectively.
• BUY recommendation and TP of RM2.90 remained unchanged.

Kossan (HOLD é)

9M14 Results

• 9M14 core net profit accounted for 65.5% and 61.2% of HLIB and consensus full year estimates, respectively.
• We deem this to be in line as we are expecting a stronger quarter ahead from the contribution of new capacity.
• Declared 1^st interim dividend of 3.5 sen per share (9M13: 3.5 sen).
• QoQ: 3Q14 revenue grew (+8.1%) on the back of stronger sales from gloves and clean-room divisions, despite slower sales from TRP division, translating into higher core earnings (+7.4%).
• YoY: 9M14 revenue contracted (-4.5%) due to lower ASP in gloves division, offsetting the higher sales in clean-room division. Earnings turned positive thanks to improved margin.
• Upgrade from SELL to HOLD as we roll forward our valuation to CY16, leading to a higher TP of RM4.49.
• Our valuation is pegged to 12.8x of CY16 EPS, based on 1SD above 5-year historical average P/E.

PosM (SELL ê)

Weak 2Q15; Dragged by Mail and Retail

• Below - Reported 2QFY03/15 core earnings of RM8.2m and 1HFY03/15 of RM37.2m, which is 27.1% of HLIB and 22.9% of consensus.
• The weak performance was mainly due to higher than expected cost structures (related to staff and transportations).
• Recognized gain of RM25.5m from expired postal order in 2Q15.
• Cut earnings by 25-36% for FY03/15-17, after adjusting for the higher than expected cost structures.
• Downgrade PosM to SELL (from Hold) with lower Target Price of RM3.65 (from RM4.60), based on 18x P/E for FY03/16.

Scomi Energy (BUY çè)

Drag by marine segment.

• Below expectations due to lower margin as a result of change in product mix coupled with losses from marine segment.
• Marine segment under pressure with PAT swung from profit to losses. This was mainly due to lower utilisation of vessels and volume coal transported.
• We understand the company is still looking for opportunity in RSCs, brownfield and EOR businesses in the near future.
• We maintained our BUY call with a TP of RM1.07 (pending review of earnings forecasts).

CBIP (HOLD çè)

Within expectations

• 9MFY14 reported net profit of RM67m (+12.6%) accounted for 69.4% and 67.9% of our and consensus full-year forecasts. We consider the results within expectations, as we expect stronger 4Q (the special purpose vehicle division is seasonally stronger in 4Q). 
• Proposed a 2^nd interim DPS of 3 sen, bringing total DPS YTD to 5.5 sen.
• Maintain earnings forecasts, TP of RM2.13, as well as HOLD recommendation.  

ViTrox (BUY çè)

9M14 Results – Exceed Expectations

• 9M14 core net profit of RM35.4m was higher-than-expected, accounted for 84.6% of HLIB full year estimate.
• The sequential slowdown is very much guided and expected mainly due to industry’s seasonality. Even so, 3Q14 revenue of RM39.5m is another remarkable milestone as the second highest quarterly sales in its history.
• Gartner expects global semiconductor capital spending to be robust in 2015, growing 11.3% yoy to reach USD43.6bn.
• China’s enormous investment (Rmb1tr) into semiconductor industry may lead to potential multi-year high demand of ViTrox’s products.
• Reiterate BUY with unchanged TP of RM3.17, pegged to 1SD above 5-year historical average P/E multiple of 16.2x.

Traders Brief

Follow-through rebound still intact to retest 1836-1850 resistance zones

• The follow-through rebound remained intact as reversal pattern of “Bullish Engulfing” on 17 and 18 Nov is still in force and the traditional year-end Nov/Dec window dressing activities would spur some positive impacts. Further upside targets are 1836 (23.6% FR) and 1850 (downtrend line and 200- SMA) and 1860.
• However, near-term outlook for KLIC is not out of the woods yet since downtrend line has not been taken out yet. Thus, KLCI will continue to trap in range bound consolidation mode within 1800-1850, unless the 1850 resistance is taken out decisively.
• Short term supports are 1812 (50% FR) and 1800
• Took profit on PENTA yesterday as it hit R1.
• Today’s recommendation: Impulse Trading BUY on ESCERAM.

Impulse Trading - ESCERAM

ESCERAM: Resumption of uptrend on the card

• Share price movement has caught our attention as Downtrend Channel and Flag pattern on hourly and daily chart respectively have been taken out by a bullish candlestick, inducing sign of resumption of its uptrend.
• Our target price projection is pegged at RM0.255, RM0.27 and RM0.29. However, always prepared to set cut loss if situation changes. Support at RM0.23 with cut loss below RM0.22.

MIB Research Summary - 21 Nov 2014

SapuraKencana Petroleum: Maintain Buy On E&P assets expansion  Shariah-compliant

Buys PCSB’s 3 E&P blocks in Vietnam for USD400m, awarded 2 onshore E&P blocks in Sabah. Risk-reward outlook turning favourable; GSA signing on track, to be completed by end-2014. Earnings forecasts unchanged for now; maintain BUY and MYR3.80 SOP-based TP. IJM Corporation: Maintain Buy Another sizeable landing  Shariah-compliant Wins MYR356m building construction job. Further orderbook enhancement from WCE and Kuantan Port. Maintain BUY with an unchanged TP of MYR7.40. RHB Capital: Maintain Buy Decent results for the quarter 9M14 net profit of MYR1.55b (+17% YoY) within expectations; trimmed FY15-16 net profit forecasts by 3-4%. Merged entity’s proforma FY15 ROE now estimated to be a lower 10.4% vs 11% previously. Cut RHB’s TP to MYR9.45 (from MYR10.20) and CIMB’s TP to MYR6.85 from MYR7.40. BUY RHB, HOLD CIMB. Bumi Armada: Maintain Buy Risk-reward turning positive  Shariah-compliant 9M14 results within our expectation but below consensus. Risk-reward outlook is improving; FPSO business is less susceptible to oil price weakness/ volatility. Maintain BUY on a reduced SOP-TP of MYR2.05, on lower valuations for its OSV operations. Eco World Development: Maintain Buy Sales beat expectations  Shariah-compliant 12MFY10/14 net profit was below expectations but property sales beat internal target by 59%. Corporate restructuring exercises to complete by 1QCY15. Adjust our earnings forecasts by -48% to +103%. Maintain BUY and MYR6.59 TP (0.84x P/RNAV). Mah Sing Group: Buy (Under Review) Results on track; proposes cash call  Shariah-compliant 9M14 net profit of MYR255m (+21% YoY) was in line. Latest fund-raising to relieve MSGB from overstretching its balance sheet due to aggressive landbanking. Our earnings forecasts, MYR2.96 TP (on 0.79x P/RNAV target) and BUY rating are under review pending further details. Genting Plantations: Maintain Hold Save the best for the last quarter  Shariah-compliant 3Q14 core PATMI below expectations on high tax expenses but operational earnings were in line. GENP is poised to deliver its best performance in 4Q14; boosted by MYR142m land sale and seasonal peak crop. Earnings forecasts unchanged. Given limited upside, we maintain our HOLD call on sum-of-parts TP of MYR11.20. YTL Power: Maintain Hold Earnings momentum still weak 1QFY6/15 core net profit was below expectation due to poor showings from PowerSeraya and the broadband business. No dividend was declared in the quarter; there remains no clarity on the corporate action front. Maintain HOLD with an unchanged TP of MYR1.65. AEON Co. (M): Downgrade to Sell Sell, weak retail performance  Shariah-compliant 9M14 core net profit disappointed at 52% of our original and consensus 2014 forecasts. We cut our FY14-16 earnings forecasts by 14-16%, assuming lower retail margins and slower sales. Downgrade to SELL on a lower TP of MYR3.05 (vs. MYR3.65), pegged to an unchanged 20x FY15 PER. QL Resources: Maintain Hold A steady catch  Shariah-compliant 2QFY3/15 net profit was within expectations at 46% of our and consensus full-year forecasts respectively. Expect a pick-up in 2HFY15, backed by seasonal effects. Maintain HOLD with an unchanged TP of MYR3.20. Kossan Rubber Industries: Maintain Buy Stronger growth ahead  Shariah-compliant Flattish 3Q outperformed peers but still below expectations. Stronger earnings ahead on commencement of new capacity. Lower FY14-16 EPS by 9%/4%/5%; TP is unchanged after we roll forward our valuation base (17x mid-2016 PER). BUY. Alam Maritim: Maintain Sell Results disappoints  Shariah-compliant Sub-par 9M14 earnings, hit largely by weak OSV contributions at both subsidiary and associates level. Cut 2014 EPS by 9% to reflect lower OSV utilisation. Reiterate SELL on unchanged MYR0.80 TP (10x 2016 PER). MY Automotive Sector: Downgrade to Neutral Headwinds ahead Oct TIV recovered to 54k units (+13% MoM), driven by new model launches but capped by tighter financing guidelines. Cut 2014 TIV forecast to 660k units, introduce 2015 TIV forecast of 660k units, premised on the normal replacement cycle and in-house 2015 real GDP growth forecast of 5.2%. Downgrade the sector to Neutral. BUY MBM for Perodua exposure and BAuto for weakness in Yen. TECHNICAL: An uncertain index tone The FBMKLCI fell 2.10 points to 1,822.29 yesterday, while the FBMEMAS and FBM100 also closed lower by 22.07 points and 18.01 points, respectively. In terms of market breadth, the gainer-to-loser ratio was 264-to-497 while 317 counters were unchanged. A total of 1.64b shares were traded valued at MYR1.62b. Trading idea is a Take Profit on CIMB with weaker supports and clear downward target areas of MYR5.61, MYR4.70 and MYR4.20.   NEWS KPJ: Gets nod for MYR1.5b sukuk scheme. KPJ Healthcare has received the authorization from the Securities Commission for the proposed Islamic commercial papers and Islamic medium-term notes with a combined limit of up to MYR1.5b. (Source: The Star) Malton: Lines up MYR1.2b property launches for FY15. Builder and property developer, Malton, has lined up three new property launches with a total gross development value of up to MYR1.2b for the financial year ending June 30, 2015, said its director of corporate finance Ng Chee Kiet. (Source: The Edge Financial Daily) AirAsia X: No Management shake-up. AirAsia X founder Tan Sri Tony Fernandes, founder of AirAsia X has denied that the low-cost medium haul airline is facing management issues. He also brushed off media reports that AirAsia X was facing problems paying salaries and allowances to its staff. (Source: The Star) U.S: Previously owned home sales increase to one-year high in October as low borrowing costs helped sustain the recovery in residential real estate. Existing homes sold at a 5.26 million annual pace, the strongest since September 2013 and up 1.5% from a revised 5.18m pace in September, the National Association of Realtors reported. It was the fifth consecutive month that the sales pace topped 5 million. Prices also climbed, the group said. (Source: Bloomberg) U.S: Leading economic indicators rise more than forecast in October, as gains in manufacturing and easier credit boosted the world's largest economy. The Conference Board's index of U.S. leading indicators, a gauge of the outlook for the next three to six months, climbed 0.9% last month, the most since July, after rising 0.7% in September. (Source: Bloomberg) E.U: Euro-area economy risks a renewed slowdown. A Purchasing Managers Index for factories and services activity unexpectedly fell to 51.4 in November, the lowest in 16 months, from 52.1 in October, London-based Markit Economics said. A reading above 50 indicates expansion. (Source: Bloomberg) Germany: Manufacturing and services expanded at the slowest pace in 16 months in November, signaling that growth in Europe's largest economy will remain sluggish. A Purchasing Managers Index for both industries unexpectedly declined to 52.1 from 53.9 in October, London-based Markit Economics said. While the gauge has been above the 50-point mark that divides expansion from contraction since early last year, the reading was below the median forecast of economists for an increase to 54. (Source: Bloomberg) U.K: Retail sales rose at the fastest pace in six months in October, boosted by sales of household goods such as furniture and spending on food. The volume of sales including auto fuel jumped 0.8%from September, when they fell 0.4%, the Office for National Statistics said. Sales excluding fuel also rose 0.8% on the month. (Source: Bloomberg) China: Factory gauge fell to a six-month low in November, adding to signs broader stimulus is needed to halt a slowdown in the world's second-largest economy. The preliminary Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics was at 50.0 which came in lower than last month's 50.4. (Source: Bloomberg) Japan: Exports rose the most in eight months in October, supporting an economy that fell into recession last quarter. Overseas shipments rose 9.6% YoY to the highest level since October 2008, the finance ministry said. Imports grew 2.7% YoY leaving a trade deficit of JPY 710b (USD 6b). (Source: Bloomberg)

MIB Research Summary - 10 Oct 2014

MY Banking Sector: Maintain Neutral CIMB-RHB-MBSB’s mega-merger

Outright winner is MBSB with potential cash option at MYR2.82/share (+19% upside). Positive for RHB - upgrade to BUY with a higher TP of MYR10.45. Positive for OSK with a FV MYR2.64. HOLD on CIMB with an unchanged TP of MYR7.60. Sime Darby: Maintain Buy Short term pain, long term gain  Shariah-compliant Expect neutral-to-slight negative earnings impact in the short term if Sime successfully privatises NBPO. But we are long term positive as PNG opens up a new market and provides future expansion opportunities for the group. Maintain BUY with an unchanged TP of MYR10.20 based on 18x 2015 PER. Technicals: Sell the Budget Day rebound (if any) The FBMKLCI advanced 5.41 points to 1,829.73 yesterday, while the FBMEMAS and FBM100 also closed higher by 42.72 points and 35.20 points, respectively. We recommend a “Sell on Rallies” stance for the index. Trading idea is a Take Profit call on NAIM with downside target areas at MYR3.08 & MYR2.28.

HLIB Research Summary - 10 Oct 2014

Banking (NEUTRAL  çè)

Mega Merger – Still Prefer RHB Cap

• CIMB, MBSB and RHB Cap announced merger structure and valuations, completion expected in mid-2015.
• CIMB and MBSB delist post capital distribution.
• CIMB valued at RM7.267 (1.7x P/B 1HFY13) and RHB Cap at RM10.028 (1.44x), both in line but MBSB at RM2.82 (1.9x) surprised on upside.
• Long-term positive but short-term pain (ROE dilution and integration cost).  Execution and overlaps key risks.
• MBSB winner, privatize at RM2.82 vs. RM2.37, +19%.
• Neutral to CIMB, valued at near current price.
• RHB Cap positvie, new valuation yardstick vs. current undervaluation.  At RM10.028, FY15 P/E and P/B at 11x and 1.1x although ROE will drop to high single-digit.
• Maintain BUY on RHB Cap with unchanged RM10.00 TP and HOLD on CIMB with unchanged RM7.22 TP.
• OSK still good proxy but price appreciation reduced SOP (after 10% discount) of RM2.63 with market price to 15%.

Sime Darby (HOLD çè)

A surprise offer for NBPOL

• Sime surprised the market by announcing its intention to make a general offer for all the shares in NBPOL at £7.15/share cash.
• The price tag values NBPOL at 2014-2015 P/E of 16.4-20.5x (based on consensus), current P/B of 2.04x, EV/ha of RM80,356 (planted oil palm estates). We believe the high price tag is justified given: (1) the scarcity of sizeable brownfield plantation land bank; (2) the rare opportunity to acquire quality brownfield asset (which has strong reputation and track record, and full RSPO certification); (3) it is a good platform for Sime to expand into plantation business in PNG.
• Sime would not have issue funding the acquisition, and the acquisition will only raise Sime’s net gearing from 0.22x to 0.44x, based on our estimates. Earnings wise, we estimate that the acquisition will add ~2.5% to Sime’s FY06/15 earnings.
• Maintain earnings, SOP-derived TP of RM9.75, and Hold recommendation.

Traders Brief

Jittery mood returns amid overnight Wall St slump and the tabling of Budget 2015 today

• Ahead of the Budget 2015 release today and the return of jittery mood in Wall St and overseas markets due to concern of global economic growth, KLCI is expected to experience some wild swings ahead, tracking external markets.
• Immediate rebound targets are 1833 (50% FR), 1838 (10-d SMA) and 1852 (200-d SMA). Only a strong breakout above 200-d SMA will lift the market from current downward consolidation. Conversely, a breakdown below 1818 will likely to spur further downside towards 1800 psychological support.

Trading Idea - Brent Crude Oil

Brent Crude Oil – Technical rebound on the card!

• Positive Divergence between price and Slow Stochastics suggests potential technical rebound. Moreover, “Spinning Top” candlestick at bottom on weekly chart indicates sign of reversal of recent correction. Thus, Crude Oil is expected to rebound in near term and subsequently resume its uptrend if the downtrend (USD97) is taken out. Critical resistances are located at USD97, USD102 and USD105 while supports at USD88.42, USD82.68 and USD76.75.

Research Summary: 1 July 2014

Research Summary: 1 July 2014

Research House	Type	Company/Sector	Report Title	Rating/Call	Target
RHB	Sector update	Banking Sector	More patience required//May 2014 statistics – still unexciting	Neutral	N/A
RHB	Company Update	AMMB	An under-appreciated stock	Buy	RM8.00
RHB	Company update	CIMB	Quiet for now	Neutral	RM7.75
RHB	Company update	Hong Leong Bank	Capital raising causes overhang	Neutral	RM14.90
RHB	Company update	Maybank	Well-balanced exposure to sector	Buy	RM11.00
RHB	Company update	Public Bank	Positives largely priced in	Neutral	RM18.60
RHB	Results review	Hiap Teck	Earnings improved on lower tax expenses	Buy	RM1.00
RHB	Eco Outlook	Economic	More moderate but resilient growth envisaged for 2H
RHB	Eco Highlights	Economic	Broad monetary aggregate, loan growth weakened in May
CIMB	Results Note	Cypark Resources	Continued momentum	Add	RM3.09
CIMB	Sector update	Banking sector	May 14 tracker – south-bound trend in loan growth	Neutral	N/A
Maybank	Sector update	Banking sector	Sub-10% loan growth in May	Neutral	N/A
Maybank	Company update	RHB	Aborts Bank Mestika acquisition	Hold	RM8.70
Maybank	Technical	Vitrox		Short-term buy