Another Jittery Trading day......

Public Bank

1Q13 earnings were within expectations. But, with NIMs compressing much more than expected, trimmed FY13-15 earnings by 2-5%. Public Bank's share price is close to its all-time high is testimony to its strong fundamentals, with investors gaining exposure to a group that continues to steadily garner market share in the consumer segment.

Current valuations, however, appear toppish with the stock trading close to 1 SD above its mean PER and P/BV, with just an 8% upside to our TP of MYR17.60 (P/BV target of 3.2x, +1 SD from mean). Dividend yields are fair at 3.2% for FY13.

DIGI.COM

Digi's 1Q13 net profit of MYR329m (+2% YoY, +34% QoQ) was 19% the consensus on full-year forecast. This is in line with the expectation of accelerated depreciation (MYR91m in 1Q against c.MYR150m for the full year) to taper off in the subsequent quarters (1Q13 EBITDA was 24% of full-year forecast).  A 3.8sen DPS was declared, 90% payout. Overall, the sector continues to be devoid of strong re-rating catalysts.

Kossan Rubber

Having underperformed its peers in 2012, Kossan's share price has risen 13% YTD, outperforming peers by 5-ppt YTD. It is believe its share price performance will continue to be supported by falling rubber prices, along with a more assertive growth strategy and dividend payout.

FY13/14/15 EPS forecasts are raised by 6%/ 10%/9% on assumptions of stronger sales and better margins.

Pavilion REIT

PavREIT's 1Q13 net profit of MYR54.3m (+14% YoY, +8% QoQ) was within our and consensus expectations.
Maintain FY13-15 earnings forecasts and DCF-based TP of MYR1.63. The REIT has risen 14% in price since Jan 2013, outperforming the KLCI’s 2% rise. It currently trades at an FY14 gross yield of 4.8% vs the large-cap REIT average of 5.0%. Total return is less than 10%.


OTHERS

UMW: Primed for stronger showing. UMW Holdings Bhd is anticipating a stronger showing this year as its drilling operations and oilfield services and manufacturing and engineering (M&E) activities move upscale. The group has set aside a total of MYR1.3b for capital expenditure this year to boost its vast operations. (Source: Business Times)

Selangor Properties: To develop 105ha in Selangor. Selangor Properties Bhd plans to develop about 105.2ha in Selangor over the next few years. Firstly, it hopes to develop its landbank of about 32.4ha in the areas of Bukit Permata and Selayang Mulia, Selangor. (Source: The Star)

Plantation: Indonesia to limit size of new oil palm estates. Indonesia is working on a regulation to restrict to 100,000ha plantation area for new private palm oil firms, as the world's top producer of the edible oil seeks to open up the industry to smaller players. The regulation would not be retroactive. Companies that have acquired more than 100,000ha can still manage them. (Source: The Star)

Property: 5% to 10% property price correction seen. Luxury condominiums and even landed property may face a 5%-10% price correction this year in response to a slower occupancy rate last year. This does not, however, mean that property prices would start to tumble as overall mass market housing would be able to sustain slower growth. (Source: The Star)

Healthcare: Nusa Gapurna plans medical centre in MYR11b PJ Sentral project. Nusa Gapurna Development Sdn Bhd is in talks with a few parties, including the Pantai Group and KPJ Healthcare Bhd, to set up a medical facility in Phase Two of its flagship MYR11b PJ Sentral project. Separately, Nusa Gapurna is looking at real estate investment trust (REIT) option for the last of its six office towers, which form part of PJ Sentral's first phase. (Source: The Star)

Iskandar: Attracted RM5b in Q1, committed investments at MYR111b. Iskandar Malaysia attracted RMYR5.06b new investments for the January-to-March period, with committed investments totalling MYR111.37b from 2006 up to March 31. Of the total cumulative committed investments, MYR44.82b, or 40.2%, represents investments that have been realised. (Source: The Star)

FBMKLCI Is Still Resilient

The FBMKLCI climbed 6.96 points to close at 1,707.35 yesterday. Its resistance levels of 1,707 and 1,716 will cap market gains, whilst obvious support areas are located at 1,689 and 1,705. Trading Idea is a Take Profit call on MISC with downside target areas at MYR4.28 & MYR4.08.