CIMB Research Summary - 25 Nov 2014

Westports Holdings - Explosive catalysts on the horizon
Westports’ share price may be driven up in the months ahead by three potential catalysts: the start of the Ocean Three alliance, the renewal of the Investment Tax Allowance, and government approval to raise port tariffs. Westports is our top pick in the Malaysian transport space. We initiate Westports with an Add call and a probability-weighted DCF target price of RM4.57, incorporating different scenarios of the timing and quantum of the tariff hike. We expect the core EBIT 3-year CAGR of 10% to rise to 17% if port tariffs are raised 30% on 1 January 2016.

Petronas Dagangan - Fuel up!
Contrary to what the market thinks, the government’s decision to put RON95 petrol and diesel on a managed float system is positive for petroleum retailers, including PetDag. The managed float system will lead to the removal of subsidy receivables, thus potentially improving PetDag’s cash flow. Also, the automatic pricing mechanism (APM) remains in place, ensuring PetDag a fixed company margin of 5 sen/litre. In view of the sharp share price fall since the managed float system was announced on 21 Nov, we upgrade our call from Hold to a trading-oriented, non-consensus Add while maintaining our forecasts and target price. We continue to value the stock at 21.2x CY16 P/E, still at a 30% premium over our target market P/E of 16.3x.

Axiata Group - Celcom yet to regain footing
Axiata’s 3Q14 core net profit fell 15.2% qoq (-35.4% yoy). This missed our expectations, with 9M14 core net profit at 66%/69% of our/consensus full-year forecast. As expected, no dividends were declared for 3Q14. We cut our FY14-16 core net profit by 8-13% for weaker-than-expected Celcom and associate earnings, plus much higher depreciation. Our SOP-based target price is cut by 1.4% to RM7.10. With rebounds expected at Celcom and XL, we see stronger earnings for Axiata in FY15; though consensus numbers appear to have factored this in. Axiata is now guiding for steady to marginally higher capex in FY15, which is possibly a negative surprise for the market. Still, Axiata is our preferred Malaysian telco pick for its earnings recovery story.

Affin Holdings - Not taking full advantage of rate hike

Petronas Gas - Pengerang to drive excitement

Signature International - Gaining momentum

Uchi Technologies - A stronger brew

UMW Oil & Gas - Bigger fleet oils the way to record quarter and maiden dividend
WCT Holdings - Weighed down by property

Economic Update - Sep leading index holds steady

Research Summary: 24 July 2014

Research Summary: 24 July 2014

Research House	Type	Company/Sector	Report Title	Rating/Call	Target
RHB	Company update	Prestariang	Fully priced in for now	Neutral	RM2.34
RHB	Results review	Westports	Earnings improved on higher volume	Buy	RM3.29
RHB	News flash	AZRB	Bags MYR185m Putrajaya building/road job	Buy	RM0.96
RHB	Results review	Daibochi	Another unexciting Quarter	Take profit	RM3.75
RHB	Results review	Pantech	Margin improves but sales decline	Neutral	RM1.25
CIMB	Results note	Daibochi	Signs of stable costs	Hold	RM4.38
Maybank	Company update	Hartalega	Transitioning to higher growth; U/G to BUY	Buy	RM7.30
Maybank	Results review	Westports	Waiting for tariff revision	Buy	RM2.85
Maybank	Technical	KPS		Take profit
Kenanga	Results note	Pantech	1Q15 in-line	Outperform	RM1.23
Kenanga	Results note	Westports	2Q14 results inline	Outperform	RM3.13
Kenanga	On radar	Pintaras	Bright prospects	Trading buy	RM4.78

Research Summary: 16 July 2014

Research Summary: 16 July 2014

Research House	Type	Company/Sector	Report Title	Rating/Call	Target
RHB	Company update	Westports	Throughput growth is on track	Buy	RM3.23
RHB	IPO Note	Tanah Makmur	Growing into prosperity	Not rated	N/A
CIMB	Company visit	Titijaya Land	Shooting for the stars	Not rated	N/A
CIMB	Flash note	Genting Malaysia	GITP moving fast	Add	RM5.70
Maybank	Feature	Heng Huat Resources	Turning waste to gold	Not rated	N/A
Maybank	Company update	AirAsia	Trading on the cheap, BUY	Buy	RM2.65
Maybank	Company update	TSH Resources	Acquiring greenfield land	Hold	RM3.40
Maybank	Technical	Media		Take profit
Kenanga	Quick bites	TSH Resources	Expanding plantation landbank	Outperform	RM4.30