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.