KLSE Stabilising....

AMMB Holdings
AMMB's FY13 net profit of MYR1.63b (+10% YoY) was within expectations and consensus. The forecasts are maintained but with the stock offering stable ROEs of about 14.5%, we do believe higher valuations are warranted. The TP is thus raised to MYR8.30 from MYR7.60 on a higher CY13 P/BV target of 1.9x vs 1.8x previously. AMMB continues to offer exposure to a) a decently valued (CY14 PER of 11.1x vs the sector’s 11.9x) financial stock with sustainable, rather than declining, ROEs of about 14.5%, b) a beneficiary of the ETP, c) a group whose fee income base is growing a double the rate of its peers'.

Notion Vtec
NVB's 6MFY9/13 core net profit of MYR5m (-73% YoY) was below expectations, making up just 12% and 15% of our and the market’s full-year estimates respectively. While we expect a strong revenue rebound in 2HFY9/13 (+30-40% HoH), full-year earnings may still come in below forecast. The earnings forecasts, HOLD rating and TP of MYR0.76 (5.5x 2013 PER) are under review, pending an analyst briefing today.

UMW
Pending an analyst briefing today, we remain neutral on UMW's proposal to list its core O&G assets via UMW Oil & Gas Corporation (UMW-OG). While the exercise is positive in unlocking values for the group, much will depend on the pricing of the IPO, which has not been determined just yet. Unchanged TP of MYR13.26 pegged at 14x FY14 PER.


Hartalega
Hartalega's non-deal roadshow (NDR) in Singapore last Friday was well-received. The two areas that garnered the most attention were with regard to: i) management’s ability to successfully execute its ambitious expansion plans; and ii) competition within the nitrile space.  Investors were generally positive on its next phase of growth, which will see Hartalega dominating the nitrile space. However, trading at forward PER of 16x, we think the current share price is already fair. TP of MYR5.40 (15x 2014 FD PER).

OTHERS

Petronas Gas: To allocates MYR8.1b capex. Petronas Gas Bhd has allocated MYR8.1b in capital expenditure (capex) for the next five years beginning from this fiscal year, which will be mainly spent on the construction of its two liquefied natural gas (LNG) regasification terminals in Pengerang and Lahad Datu and its plant rejuvenation projects. For FY13 alone, Petronas Gas has put aside MYR1b in capex. (Source: The Sun)

CIMB: To decide soon on BoC stake buy. CIMB Holdings Bhd expects a decision soon on its planned purchase of the Philippines' Bank of Commerce (BoC). Chief executive Datuk Seri Nazir Razak said the decision on whether to proceed (with the acquisition) could happen in a few days, or weeks, but surely within a month. (Source: Business Times)

Astro: To join MSCI Malaysia Index. Astro Malaysia Holdings Bhd will be included as a component of the 42-stock MSCI Malaysia Index with effect from May 31. MSCI Inc said Astro would replace Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) in the index. (Source: The Star)

AMMB: To complete due diligence for HwangDBS. MD Ashok Ramamurthy said AMMB Holdings Bhd (AmBank Group) expects to complete its due diligence on the proposed acquisition of HwangDBS Investment Bank Bhd in two weeks. (Source: The Sun)

Sime Darby: Sells office tower for MYR125m.Sime Darby Bhd's indirect subsidiary Sime Darby Ara Damansara Development Sdn Bhd is selling a 12-storey office tower in Oasis Square Ara Damansara, Petaling Jaya to Brunsfield Oasis Tower Sdn Bhd for MYR124.5m. The proceeds from the sale will be used for working capital. (Source: Bursa Malaysia)

Deleum: Tendering MYR2b contracts. Deleum Bhd, which aims for regional expansion, is tendering for contracts worth MYR2b this year. The contracts were related to power and machinery, oilfield services and maintenance, repair and overhaul works, its group MD Nan Yusry Nan Rahimy said. It currently has contracts worth MYR1.4b that would last through 2018. (Source: The Star)