Another good day for KLSE...

Alam Maritime
Alam's target price was raised to MYR1.30 (+16%) following a 9-11% upgrade in our FY14-15 earnings forecasts on higher IRM/T&I contract win assumptions. Now expect Alam to win up to MYR600m of Inspection Repair Maintenance (IRM) and Transportation & Installation (T&I) jobs in 2013 vs. MYR300m previously as O&G capex spend is expected to accelerate going into 2H. Alam has won MYR206.9m YTD. Expecting Alam's job win announcements to lift its share price further (+76.5 YTD). Our TP remains pegged to 10x FY14 EPS.

Dialog Group
Cut FY6/13 forecasts by 13% following softer than-expected 3QFY6/13 results. Nevertheless,  remain positive on Dialog's growth prospects; its tank terminal operations in Johor will sustain earnings growth over the long term. Dialog offers investors a steady business model, focused management, attractive earnings growth with an increasing proportion of recurring income, and a progressive dividend. SOP-based TP is unchanged at MYR3.05.

Tan Chong Motors
TCM's 1Q13 net profit of MYR84m (+74% QoQ, +169% YoY) beat our and consensus expectations at 27% respectively.  The better-than-expected results were due to (i) margin recovery from economies of scale from higher production volume and (ii) component cost savings from the softer Yen. Taking these into account, we raise our FY13/14/15 forecast by 5%/6%/4%. Backed by a strong investment case with a potential 3-year forward net profit CAGR of 66%, higher valuations are warranted and we have correspondingly raised our TP to MYR8.05 (+15%) on a higher FY14 PER target of 13x (12x previously) – 15% premium to its long-term mean of 11.3x.

Gas Malaysia
1Q13 core earnings made up 22% of our and consensus full year forecast. We are keeping our forecasts unchanged, and expect a stronger 2H12 performance driven by higher sales of natural gas as LNG regas supplies kick in. While Gas Malaysia is notable for its strong cash-generative capacity and dividend disbursements, most of the positives have been priced in. We maintain our HOLD call and MYR2.90 DCF-based TP.

Others

CIMB: San Miguel says sale of BoC at final stage. The Philippines' San Miguel Corp expects to know the outcome of its proposed sale of a stake in Manila-based Bank of Commerce (BoC) to CIMB Group Holdings Bhd in a week or so. (Source: The Star)

BIMB: To start board talks on Dubai Financial stake buy. BIMB Holdings Bhd will initiate detailed discussions within its board on the plan to acquire Dubai Financial Group LLC's equity interest in Bank Islam Malaysia Bhd by month-end. Group MD and CEO Johan Abdullah said at this juncture, valuation and pricing parameters for the acquisition had been determined. (Source: Business Times)

WCT: Confident of winning MYR1.5b projects this year. Deputy managing director Goh Chin Liong said the company has already secured MYR500m worth of projects and is tendering for contracts worth MYR5b here and overseas. "Out of the MYR5b, MYR3b is from domestic and MYR2b from overseas, especially in the Middle East," he told reporters after the company's AGM yesterday. He said the firm aims to grow its business in Malaysia and abroad and will continue to bid for some of the major infrastructure and building projects under the Economic Transformation Programme and other private sector projects. (Source: Business Times)

Astro: Signs MYR497.5m deal with Measat. Astro Malaysia Holdings Bhd has entered into an agreement with Measat Global Bhd (MGB) for the utilisation of transponder capacity on the Measat-3c satellite for a fee of MYR497.5m. The related party transaction signed via its unit Measat Broadcast Network Systems Sdn Bhd, and MGB's unit Measat Satellite Systems Sdn Bhd, would enable Astro to utilise transponder capacity of 6 Ku-band transponders on the satellite in tranches over a period of 15 years starting from the commencement date. It said the satellite is expected to be launched by the third quarter of 2015. (Source: The Star)