Bursa Malaysia Stock Watch

RHBInvest Research Highlights 24th October 2011

kltrader
Publish date: Mon, 24 Oct 2011, 02:10 PM
kltrader
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24th October 2011
 
Top Story: HSL ' What flows above and beneath                     Outperform
Visit Note
''       The RM452m Phase 1 of the Kuching City Centralised Sewerage System project has hit the half-way mark and HSL is in a good position to negotiate for Phase 2 of the project worth about RM800m.
 
Sector Call
 
Oil & Gas: Petronas opens up to unlicensed players?                Neutral
Sector Update
Petronas Gas:  Fair value at RM14.50                                         Outperform
Dialog: Fair value at RM3.51                                                         Outperform
Kencana: Fair value at RM2.21                                                     Market Perform
SapuraCrest:  Fair value at RM3.36                                             Market Perform
Petronas Chemicals: Fair value at RM5.62                               Market Perform
Dayang: Fair value at RM1.55                                                       Market Perform
Wah Seong: Fair value at RM1.87                                                Market Perform
Petra Perdana:  Fair value at RM0.60                                          Market Perform
KNM: Fair value at RM0.70                                                            Underperform
MMHE: Fair value at RM3.93                                                         Underperform
RH Petrogas: Fair value at S$0.75                                              Outperform
 
Corporate Highlights
 
Axiata: Idea weighed down by finance costs                                Market Perform
Company Update
''       Axiata's associate, Idea Cellular reported 1HFY03/12 core net profit of INR3,173m (-16.7% yoy), which came in below expectations, accounting for only 38% of consensus full-year estimates. The market had expected 9.5% net profit growth to INR4,171m. The key variance was higher interest expenses.
 
Maxis: Hops onto sharing bandwagon                                          Outperform
News Update
''       Maxis and U Mobile entered into an agreement to share Maxis' 3G radio access network (RAN), for an initial period of 10 years and will cater for long-term evolution (LTE) when the spectrum becomes available.
 
Proton: Big in China                                                                        Market Perform 
News Update 
''       Proton has entered into an MOU with Hawtai Motor Group ("Hawtai") to evaluate the possible establishment of a joint venture in China , to invest in product development via joint designing and development cost sharing.
 
MBM Resources: MOU to sell 20% of Daihatsu Malaysia         Underperform 
News Update 
''       MBM entered into an MOU with Mitsui for the sale of an additional 20% in Daihatsu ( Malaysia ) for RM75m cash. DMSB is the distributor of Daihatsu commercial vehicles and is also a dealer of Hino commercial vehicles and Perodua vehicles. DMSB is currently a 71.5% subsidiary of MBM with Mitsui holding 10% and will remain a subsidiary (51.5%) following the stake disposal.
 
Daibochi: Within expectations                                                       Market Perform
3QFY11 Results
''       Daibochi reported 9MFY11 net profit of RM14.2m, in line with our expectations but below consensus, accounting for 73% and 66% of our and consensus full-year estimates respectively.
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