RHBInvest Research Highlights 18th January 2012

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RHBInvest Research Highlights 18th January 2012

kltrader

Publish date: Wed, 18 Jan 2012, 11:05 AM

18th January 2012

Top Story

IJM Corp ' Kajang- Seremban Highway not living up a cash cow Underperform

Company Update

- FY03/12-14 net profit forecasts are trimmed by 3% p.a., having imputed share of RM20m net loss p.a. from Lekas. Fair value reduced by 2% from RM4.59 to RM4.48. Maintain Underperform.

- Related story : IJM Corp Results/Briefing Note ' 1HFY03/12 Core Net Profit Grows 11% YoY, Slight Delays In WCE and NPE Extension (29 Nov 2011)

Sector Update

Motor ' A better 2012 Underweight

Sector Update

MBM Resources ' Fair value RM3.90 Outperform

Tan Chong ' Fair value RM4.40 Market Perform

UMW ' Fair value RM6.20 Underperform

APM ' Fair value RM4.30 Market Perform

Proton ' Fair value RM5.50 Market Perform

DRB-HICOM ' Fair value RM2.20 Market Perform

- MAA (Malaysian Automotive Association) guidance is for Jan 2012 vehicle sales to improve slightly given ongoing promotional campaigns and the seasonal rush to deliver new vehicles ahead of the Lunar New Year holidays. We are revising our 2012 TIV forecast to 612,000 units (+2% yoy) from 607,000 units on the back of RHBRI's 3.6% GDP growth forecast and 5.3% rise in consumption spending.

- Related story: Motor Sector Update ' Seasonal Slump And Floods Hit Sales (20 Dec 2011)

Corporate Highlights

TNB ' On recovery path Market Perform

Results / Briefing Note

- FY12 core earnings forecast raised by 22% after imputing an additional 50 mmscfd of gas to be received by TNB beginning Mar. Fair value revised to RM6.50 (from RM6.15) based on unchanged target CY12 PER of 15x. Maintain Market Perform.

- Related story: TNB Results Preview ' Slight improvement in 1Q (16 Jan 2012)

Axis REIT ' More asset acquisitions in the pipeline Market Perform

Briefing Note

- Axis REIT is currently looking at 11 potential assets totalling RM545m that could be injected into the REIT over the next 2 years, with half targeted to be acquired by end-2012.

- Our EPS forecasts have been revised slightly by 0.8-1.1% for FY12-14 after we factor in lower interest expenses. We raise our fair value slightly to RM2.72 (from Rm2.70) after revising our FY12 DPU estimates. Maintain market Perform.

- Related stories: Axis REIT 4Q11 Results Note ' Total DPU of 17.2 sen for FY11 (17 Jan 2011); Axis REIT News Update ' Acquisition in Bayan Lepas (27 Oct 2011); Axis REIT News Update ' New Acquisition in Penang (29 Sep 2011)

Fajarbaru ' Completes private placement of 15m new shares at RM0.90/share Market Perform

Company Update

- Fajarbaru has completed a private placement of 15m new shares at RM0.90 per share.

- The RM13.5m gross proceeds from the exercise will increase its net cash of RM24.2m as at 31

- Fair value is reduced by 5% from RM0.91 to RM0.86. Maintain Market Perform.

- Related story: Fajarbaru News Update ' Lands RM62m Sewerage Treatment Plant Job In Selangor (22 Dec 2011)

IJM (3336)TENAGA (5347)AXREIT (5106)FAJAR (7047)

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