Another quiet day....... Look like a construction play day

IJM Land

The crystalisation of major construction job wins by the end of this year, record-high property sales, strategic property landbanks with high capital appreciation potential and an expansion at its Kuantan Port are not fully reflected in IJM Corp's share price, in our view. We fine-tune our earnings forecasts post housekeeping, and raise our RNAV-based target price by 9% to MYR6.10. IJM Corp is now a BUY. Current valuations, at 13.2x CY14 earnings, are below its long-term mean of 14x. Our new TP implies a CY14 PER of 14.7x.

OTHERS

PChem: Investing MYR1.5b in Kuantan plant with BASF. Petronas Chemicals Group Bhd (PChem) and German chemicals giant BASF are investing USD500m (MYR1.5b) in an integrated aroma ingredients production facility in Gebeng, Kuantan, expanding on an existing joint venture (JV) there. (Source: The Star)

JTI: High dividends if there is excess cash. JT International's CFO Thean Nam Hooi said the company will continue paying high dividends if it has no major capital expenditure requirement. However, Thean also said that a high dividend payout for this year may not be possible as JTI expects the operating environment to remain "extremely challenging". This is due to the impact of illegal cigarette sales and from certain local brands being sold below the minimum price. (Source: Business Times)

Astro: PT Direct Vision claims USD20b from Astro. PT Direct Vision (PTDV) of Indonesia has served a statement of claim for USD20b (MYR60.8b) against Measat Broadcast Network Systems Sdn Bhd (MBNS) and its parent, Astro Malaysia Holdings Bhd, for "immaterial loss" resulting from the 2008 dispute over the proposed DTH pay TV business in Indonesia. (The Edge Daily)

Bright Packaging: Cancels dividend. Bright Packaging Industry Bhd's new board of directors have revoked the company's earlier announcement on the 100% dividend policy payout for the next five years. The current board said this is because the focus of the company, for the time being, is growth. (Source: The Star)

Property: Broadway Malyan wins design job for Bandar Malaysia. 1Malaysia Development Bhd (1MDB) has appointed an international team in partnership with local planners to create the master plan for Bandar Malaysia at the Sungai Besi airport in Kuala Lumpur. Led by internationally-acclaimed master planner Broadway Malyan (BM), the team will be supported by world-class design and engineering teams from Arup and Sinclair Knight Merz, in collaboration with local planner Arah Rancang Malaysia (AR). (Source: The Star)

FBMKLCI Will Be Boring And Range Bound

The FBMKLCI declined by a marginal 1.01 points to close at 1,706.34 yesterday. Its resistance levels of 1,706 and 1,716 will cap market gains, whilst obvious support areas are located at 1,688 and 1,704.

Trading idea is a Short-Term Buy on INARI with upside target areas at MYR0.63 & MYR0.72. Stop loss is at MYR0.48.

There is a wide speculations in the market that Eversendai’s executive chairman and group managing director AK Nathan may privatise Eversendai in short-mid term. Eversendai is not available to comment on this news speculation. Eversendai ends trading at 1.09 at Friday closing and believe to be trending higher next week on possible announcement of big contract win in the Kingdom of Saudi Arabia in the coming weeks. Eversendai is among the cheapest stock in the construction universe, with 9 times forward PER;8% 2012 to 2015 net profit CAGR;and 3.2% dividend yield.