Sime Darby (Buy)

FY06/11 result: above our expectation

'''' FY06/11 core net profit of RM3,808.5m beat our expectation, accounted for 110.5% of our full-year forecast.

'''' Main deviations are higher-than-expected contribution from the plantation, industrial, and motor divisions.''

'''' FY06/12-13 net profit forecasts raised by 0.1-3.1%, largely to reflect higher margin assumptions at both the industrial ad motor divisions, and slightly higher FFB output growth assumption in Malaysia.

'''' SOP-derived TP cut by 3.7% from RM10.99 to RM10.60 to reflect higher holding company discount that more than offset an upward revision in our forecasts.

''

DRB-HICOM (BUY '')

Forward with Strong Earnings Recovery

'''' 1QFY3/12 core profit of RM90.8m in line with our expectation (18.6%), but below consensus (16.8%).

'''' Impact of Japanese crisis on DRB automotive division was substantial in 1QFY3/12.

'''' Supply constraint has gradually eased off since July, in line to meet its FY3/12 target

'''' Expect strong earnings from 2QFY3/12 onwards due to recovery of automotive division, maiden contribution from POS, and effective implementation of Hire Purchase Act amendment and Waste Management Act amendment.

'''' Maintain BUY with unchanged TP of RM2.97.

''

YTL Power (BUY '')

4Q11 Results in Line

'''' Reported 4QFY6/11 core earnings of RM379m bringing FY11 to RM1,216m, inline with our expectation (96.1%) and'' consensus (102.1%).

'''' Strong contribution from Power Seraya in Singapore on the back of strong GDP growth, which offsets the lower contribution from Wessex (due to depreciation of UK'') and losses from YTLC (due to high initial capex outlay).

'''' YTLP will recognize RM210m gain on disposal in 1QFY6/12 from the sale of 15% Java Power. However, the contribution from Java Power will be reduced to RM150m in FY6/12 and RM130m in FY6/13 onwards, from original RM225m pa.

'''' Proposed 1.875 sen net dividend, taking FY6/12 dividend to 9.375 sen, below our expectation.

'''' Reduced FY6/12-13 earnings by 6-7%.

'''' Maintain BUY with lower TP of RM2.33 after accounting for lower earnings and imputing 10% holding discount.

''

Maxis (Hold)

1H11 results: In line wirh our expectation

'''' 1H11 reported core net profit of RM1,090m (-3.7%) came in within our expectation, at 48.2% of our full-year forecast. Against consensus, the results came in below, accounted for only 45.4% of the full-year estimates.

'''' 2011-13 net profit forecasts and our DDM-derived TP of RM5.51 maintained.