07th October 2011
Top Story: Timber ' Uncertainty in Japan 's housing starts recovery Neutral (down from OW)
Sector Update
'' We believe that there is now increased uncertainty regarding the recovery of Japan housing starts going forward due to heightened risk of the global economy slipping into a double-dip recession. Bearing in mind that the recovery in Japan's normal housing starts could stall, we now view that the reconstruction activities of the earthquake disaster area would likely just help to sustain Japan's housing starts over the next two years, leading to relatively flat growth.
Corporate Highlights
Dialog: Kick-starting Langsat Terminal Three Outperform
News Update
'' Yesterday, Dialog announced that its JV with MISC, Centralised Terminals S/B (CTSB), has entered into a shareholders agreement with China Aviation Oil (Singapore) Corporation (CAO) to establish a JV known as Langsat Terminal Three (LgT-3). The JV will undertake the development of a 380,000m3 oil storage tank terminal facility, which is estimated to cost RM371m. The project is targeted to commence by early-CY12 and be completed by end-CY13. Dialog will have an effective 41% stake in LgT-3.
CIMB: Eyeing Bank of Commerce? Underperform
News Update
'' CIMB confirmed yesterday that it is in early discussions with San Miguel Corp with regards to a possible acquisition of a stake in Bank of Commerce (BoC) in the Philippines .
LPI Capital: Weaker-than-expected investment income Underperform (down from MP)
3QFY11 Results
'' LPI recorded 3QFY11 net profit of RM41.5m (+24.6% yoy) which brought its 9MFY11 earnings to RM115.2m (+14.1% yoy). This accounted for 71% of our and consensus full-year expectations.