Bursa Malaysia Stock Watch

RHBInvest Research Highlights 09th November 2011

kltrader
Publish date: Wed, 09 Nov 2011, 11:38 AM
kltrader
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09th November 2011
 
Top Story: Kencana ' No signs of slowing down                                  Market Perform
Visit Note
''       For the EPCC division, the company is actively looking to beef up its fabrication capacity by increasing its overseas revenue contribution from countries like India and Australia as it is currently only operating at 50% utilisation. For its drilling division, the KM-2 and KM-3 rigs, which cost a cumulative US$290m (around RM870m), are expected to be completed by Mar 2013, and Jun/Jul 2013 respectively. The AME acquisition is also likely to exceed the RM40m profit guarantee.
 
Corporate Highlights
 
MBSB: Diversifying the loan book but high NIMs sustainable                Outperform
Briefing Note
''       MBSB plans to diversify the loan book mix to roughly equal contribution from personal finance, mortgage and corporate/wholesale segments over the next 12-18 months.
 
Hartalega: Core net profit up 1.7% qoq                Market Perform
2QFY12 Results
''       2QFY03/12 core net profit of RM54.8m (+24.8% yoy; +1.7% qoq) came in within expectations with 6M net profit of RM107.9m (+24.0% yoy) accounting for 49.3% of our and consensus estimates respectively.
 
MPI: 1QFY06/12 falls into losses                           Underperform
1QFY12 Results
''       MPI's reported a 1Q net loss of RM9.6m, way below our full-year net profit forecasts of RM39.8m and consensus full-year net profit of RM54.5m. We believe this was mainly due to lower EBITDA margins as a result of lower utilisation rates and lower contribution from higher margin packages.
 
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