UMLand (Buy)

Updates from management

'''' We recently met with management and came away with the following updates on their key projects:

'''' Puteri Harbour: Relevant approvals were finally obtained, and is ready to launch in Oct/Nov, with 168 units and RM142m GDV.'' Indicative pricing remains at RM650 psf.''

'''' The RM630m Pulai Jaya industrial and logistics hub will only start in 2013 at the earliest.'' UMLand still needs to wait for the vendor to complete the interchange; works have yet to commence and will take at least 12 months.''

'''' The earliest launch date for the RM305m, 43-story apartments in Jalan Wong Ah Fook @ Johor Bahru will likely be in 1H 2012.''

'''' Jalan Mayang: we understand that all regulatory hurdles have been cleared, and that UMLand and Bolton are considering including commercial content, possibly office/SoHo units.

'''' We remain upbeat on their earnings growth story, and maintain our earnings forecast and keep our target price unchanged at RM2.30 (50% discount to RNAV).'' Maintain BUY.

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Glomac (Buy)

Disposes Thai subsidiary''''''

'''' Glomac has disposed their 49% owned Thai subsidiary, WHA Glomac Alliance for RM30.9m (THB286.9m) to WHA Corp Co Ltd (Warehouse Asia) yesterday.

'''' WHA Glomac Alliance is a warehouse operator in Thailand, and does not purse any property development projects. ''

'''' Negligible impact to earnings, given that Glomac does not have any active projects or landbank out of Malaysia.

'''' Book cost for WHA Glomac was not disclosed, but even assuming a 100% disposal gain, this would only marginally impact net gearing from 0.13x to 0.09x.

'''' No change to our earnings forecast and RM2.57 target price, based on 20% discount to RNAV.'' Maintain BUY.''

''

KLCI - Major supports at 1410-1423 pts

'''' KLCI is still facing downside risks with no signs of a trend reversal yet, unless it could convincingly breakout two immediate major resistances at 10-d SMA (1457) and mid Bollinger band (1470). Further tough resistance levels are 30-d SMA (1484) and upper Bollinger band (1507). Major supports are lower Bollinger band (1432), 1423 (YTD low) and 1410 (50% FR).

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Stock to watch ' TOPGLOVE: Crucial support at RM3.98 to prevent further selldown''

'''' Overall, near term outlook for the gloves sector remains dim as there were no strong catalysts to boost glove demand as well as profit margin, in the absence of pandemic and new markets. Despite its oversold indicators, we expect the trading band of RM4.36 (5-d SMA) to RM4.50 is likely to be a formidable resistance for any relief rally. More downside is in place if the weekly 200-d SMA of RM3.98 is broken.

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