Wednesday, May 8, 2013

The election fever continues after the GE13....What next for Malaysian KLSE.....

Malaysia Airport Holdings

MAHB has announced that some of its contractors are facing difficulty in meeting the 28 June 2013 opening deadline. No details on a revised completion time and cost overruns were provided. This announcement is not a surprise, and that the market has priced in this risk already. Maintain earnings forecasts and MYR6.60 DCF-based target price. The stock is however downgraded to a HOLD (from BUY) for its narrowed 3% upside to target price.

Hartalega

FY3/13 net profit of MYR235m (+17% YoY) was in line, at 103% and street's full-year estimates. The share price has run up 12% in one-month due to the H7N9 newsflow, although note that the contagion rate has declined of late. Net profit forecasts (FY3/14: +7%, FY3/15: +7%) on better sales volume assumptions, but the impact to EPS is muted as we factor in the potential dilution from its outstanding warrants.  Consequently, TP is unchanged at MYR5.40 (15x CY14 PER) and stock is downgraded to HOLD (from BUY), in view of the reduced upside.

OTHERS

Telekom Malaysia: Has enough cash to redeem MYR2b Sukuk. Telekom Malaysia Bhd has enough cash to redeem the MYR2b Sukuk due to mature on Dec 31, 2013. As at end-2012, TM had MYR3.7b in cash and bank balances. At the AGM on Tuesday, TM obtained shareholders' approvals for all the resolutions including the final dividend of 12.2 sen per share which will be paid on May 27. The total dividend payout including interim dividend, of 22 sen per share or MYR787m exceeded its dividend obligation of MYR700m. (Source: The Star)

Alam Maritim: Extension of contract for the provision of one accommodation vessel. Alam Maritim (M) Sdn Bhd, has recently been awarded an extension of contract by Petronas Carigali Sdn Bhd for the provision of one unit workboat. The Contract for the value of approximately MYR38m (inclusive of catering, lodging and de-mobilisation costs) will be effective from 9 October 2013 to 8 October 2014 is for a firm period of one year. (Source: Bursa Malaysia)

Banking: OCBC Bank records MYR811m net gain. OCBC Bank (Malaysia) Bhd has recorded a MYR811m net gain for the fiscal year ended December 31 2012, a four per cent jump from the previous year. Total income rose 8% to more than MYR2b while its pre-tax profit was up 5% YoY, to more than MYR1b. OCBC attributed the robust performance to strong growth in operating profit and reduction in impairment losses and provisions. Total gross loans, advances and financing grew 12% to MYR48b as at year-end, mainly due to additional consumer and business loans of MYR3.5b and MYR1.6b, respectively. Total assets grew 13% to MYR73b. (Source: Business Times)


No Gap Filling Yet

The FBMKLCI advanced 24.71 points to close at 1,776.73 yesterday. Its resistance level of 1,780 and 1,826 will cap market gains, whilst obvious support areas are located at 1,718 and 1,776. The Trading Idea is a SHORT-TERM BUY call on TUNEINS with upside target prices of MYR1.92 & MYR2.26, followed by a stop-loss of MYR1.49.

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