The FBMKLCI gained 10.41 points to close at 1,776.74 yesterday. Its
resistance levels of 1,780 and 1,826 may cap market gains, whilst obvious
support levels are at 1,748 and1,776.
2013 YE KLCI target raised to 1,840 from 1,815, pegged to 15.5x 12M
forward earnings (15x previously), on a further re-rating of Malaysian equities,
due to their rising appeal.
The re-rating is supported by solid domestic fundamentals – stable
macroeconomic conditions, a strong banking system, healthy corporate balance
sheets, and continuous corporate earnings growth. Despite gaining 4.2% in just one month after the 13GE and 4.6% YTD, the KLCI
has still underperformed its regional peers.
MAHB
Estimate KLIA2 will be ready for operations in end-1Q14, nine months from
its latest 28 Jun 2013 target. Project cost could rise to MYR4.3b, up from the
original MYR3.9b estimate.
Despite this, upgrading the earnings and target price on the premise of
higher traffic growth of 6% p.a. in 2014-2020 (from 5% p.a.) and assume MAHB
will receive an investment tax allowance (ITA).
Once there is a firm date for KLIA2's completion, people will refocus on
MAHB's solid fundamentals and the fact that its share price has lagged the World
Airports Index (WAI) and regional peers. MAHB is a BUY, with a
DCF-based TP of MYR7.20/share (from MYR6.60/share).
SapuraKencana
While the USD35m offshore installation contract from PTSC is relatively
small, it reflects: (i) SAKP's continuous aspiration in growing its
regional/global footprint and (ii) improving orderbook replenishment, locally
and abroad.
SAKP's potential inclusion in the FBMKLCI 30 Index and the possibility of it
securing the Petrobras multi-billion contract are two near-term catalysts that
will further fuel interest on the stock. Our TP is pegged to 20x FY1/15 PER.
Others
Alam Maritim: Clinches MYR71.5m. Alam Maritim Resources Bhd has won an
MYR71.5m contract from an oil and gas company to supply an anchor handling tug
supply vessel. The five-year contract is expected to commence in the second half
of this year. (Source: Bursa Malaysia)
IPO: Cardiff, 7-Eleven listing
one of options. Billionaire Tan Sri Vincent Tan Chee Yioun has not ruled out
the possibility of listing Cardiff City Football Club and 7-Eleven to raise
funds. Confirming this, he said, the decision will only be made in the next few
months. "We will consider. We are looking at several options to raise money to
pay the banks. I have invested so much, so now I need to raise some money.
Listing is one of the options. Nothing firm or definite yet," he told reporters.
Pressed further, he said, the possible listing will probably happen this year.
(Source: Business Times)
UEM, Bina Puri: Seeking RM300m from MAHB.
The UEM-Bina Puri joint venture (JV) is seeking as much as MYR300m from
Malaysia Airports Holdings Bhd (MAHB) for additional works being done at the
Kuala Lumpur International Airport 2 (klia2) project, a person with first-hand
knowledge of the matter says. It is learnt that MAHB has requested the joint
venture to expand the floor area at the airport’s main terminal and satellite
buildings to cater to requirements from various government agencies. A source
said extra floor space is also required at the three-storey main terminal
building to cater to Malindo Air, Malaysia’s newest domestic low-cost carrier,
which plans to move to klia2 when it opens next year. (Source: Business
Times)
MMC Corporation: Che Khalib tipped to head MMC. Former
Tenaga Nasional Bhd (TNB) chief Datuk Seri Che Khalib Mohamad Noh (pic) is
tipped to head MMC Corp Bhd, taking over from group managing director Datuk
Hasni Harun whose contract expires end-June. An announcement on this could be
made as early as next month. Sources said the appointment was likely, owing to
the expertise of Che Khalib in the area of utilities, specifically power and
energy. Che Khalib, 48, is currently DRB-Hicom Bhd chief operating officer (COO)
of finance, strategy and planning. (Source: The Star)
F&N
Holdings: F&N distributor for Oishi green tea. Fraser & Neave
Holdings Bhd's unit, F&N Beverages Marketing Sdn Bhd, has been appointed the
exclusive distributor of Oishi ready-to-drink green tea products. (Source: Bursa
Malaysia)
