Bursa Malaysia Stock Watch
RHBInvest Research Highlights 03rd January 2012
kltrader
Publish date: Tue, 03 Jan 2012, 01:26 PM
kltrader
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This blog provides consolidated Bursa Malaysia stock market research, analysis, news and blogs from various sources. You can search and find all the past analysis and coverage on stocks and news by searching within this site. While this blog re-publishes contents from other sites, it does not own the rights nor responsible for the accuracy of the contents. If you disagree to your content from being published here, please add a comment, and your article will be removed from this site.
03rd January 2012
| Top Story |
| Consumer ' Defensive and underpinned by resilient consumer spending Overweight (upgraded) Sector Update - The consumer retail companies' revenues, which are domestically and regionally derived, would be supported by the resilient consumer spending outlook in the Asia Pacific region. Locally, we expect consumer spending growth to remain resilient, with a projected growth of 5.3% for 2012 (vs. 6.6% for 2011). - Related story: Consumer Sector Update - 2011 Consumer Spending To Remain Resilient (28 Dec 2011) |
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| Sector Update |
| Plantation ' Risk of crop losses rising? Overweight Sector Update - Recently, several developments have led us to believe that the risk of CPO prices rising above market expectations is increasing, particularly in 1H2012, including: 1) The weather is now officially in La Ni''a territory; 2) Impact of La Ni''a on soybean supply is a high risk factor; 3) Any crop losses would have knock-on effects on CPO demand and prices; 4) Rising crude oil price and its close correlation with CPO prices; and 5) Continued narrowing of the price discount between CPO and other competing vegetable oils. - We maintain our CPO price assumptions of RM3,100/tonne for CY12 and RM2,900/t for CY13. For CY11, our price projection remains unchanged at RM3,100 even though YTD average price is RM3,274. We are not revising our forecasts for 2011 to be conservative, as we believe most plantation companies would not necessarily be able to achieve prices so close to the spot price. Banking ' Nov '11 system data ' Loan growth eased but leading indicators up mom Underweight Sector Update - Nov's loan growth moderated further to 12.8% yoy, vs. +13.1% yoy in Oct '11 (Sep '11: +13.8% yoy). This was due to slower growth in loans to businesses (Nov '11: +13.2% yoy vs. Oct '11: +13.6% yoy) while household loan growth remained steady at 12.5% yoy (Oct '11: +12.6% yoy). Banking ' BNM announced Basel III expectations Underweight Sector News Update - Last month, BNM issued a paper that sets out the Central Bank's approach to the implementation of Basel III in Malaysia . Essentially, BNM will adopt minimum capital levels and implementation timeline as spelt out by the Basel Committee last year, i.e. banking institutions are required to hold a minimum common equity ratio plus conservation buffer of 7% by 1 Jan 2019. |
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| Corporate Highlights |
| Adventa ' Burnt by fire incident in Johor plant Market Perform Results Note - 4Q11 net loss of RM8.7m brought full-year net profit to RM3.9m, i.e. 22% of our and consensus full-year estimates. The results were affected by exceptional losses relating to a fire incident in Johor (RM6.7m) and bond investment write-off (RM2.5m). VS Industry ' Net profit weaker yoy but picked up qoq Underperform Results Note - 1QFY07/12 core net profit of RM9.6m was within expectations. 1Q revenue increased by 7.5% qoq on orders from new volume sales for Itron and Epson. 1Q EBIT, however, more than doubled qoq as EBIT margin expanded by 2.8%-pts from operating leverage effects on higher utilisation rates. Coupled with lower share of associate losses, core net profit grew 29.1% qoq. |
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