YNH (BUY)

The rise of Manjung

'''' Vale International SA, the world's second-largest mining company, is expected to invest US$1.4bn for Phase 1 of their new iron ore centre in Teluk Rubiah, Manjung.

'''' The award of the maiden construction contract signals the beginning of a period of multi-year growth in Manjung.

'''' With nearly 1,000 acres of land in their Seri Manjung township, YNH stands to be the biggest beneficiary from Vale's investment in the locale, with sales from their Seri Manjung township to enjoy a major boost from jobs creation in the area.

'''' As for their existing projects, Fraser Residence (75-80% sold) will only start to be earnings-contributing in Q3, while we believe Kiara 163 will only start to be earnings-accretive in 2012

'''' We maintain our 20-59% earnings growth forecast for FY11-12, pending Q2 results release at the end of the month.''

'''' We maintain our price target of RM2.65 (40% discount to RNAV), implying 42% upside.

''

FBM KLCI - Relief rally is likely to continue on optimism of U.S. debt deal approval today

'''' In anticipation of a U.S. debt ceiling approval today and as long as the key supports at the 1536 (50% FR from 1474 to 15987) and 1529 (200-d SMA) are intact, resumption of the uptrend to retest all time high of 1597 pts will be more apparent when the FBM KLCI overcomes 1562 (50-d SMA) and 1571 (30-d SMA) levels.

'''' Immediate resistance levels are 1562 (50-d SMA) and 1571 (30-d SMA).

''

Stock to watch - Cuscapi: Upside bias after bullish breakout

'''' Cuscapi broke out of downtrend line resistance and record new high to close at RM0.50 with huge volume yesterday. There is a good chance that prices may swing to RM0.55-0.60 in the immediate term. Supports are RM0.47 (upper Bollinger band) and RM0.44 (mid Bollinger band). Trading buy but cut loss below RM0.44.