Bursa Malaysia Stock Watch

RHBInvest Research Highlights 03rd February 2012

kltrader
Publish date: Sat, 04 Feb 2012, 09:01 AM
kltrader
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03rd February 2012
 
Top Story
KPJ Healthcare ' An Exciting Year Ahead
Outperform                                                                     
Visit Note
-          The anticipated listing of Integrated Healthcare Holdings (IHH) in mid-2012 is expected to stir up investor interest and drive a rerating of the healthcare sector.
-          We expect KPJ's valuations to move closer to the new benchmark set by IHH over the longer term.
-          Furthermore, KPJ's aggressive local expansion plans should help the company maintain its dominance in Malaysia over the longer term.
 
Sector Update
Rubber Gloves ' Improving Outlook Ahead                                                   Neutral                                                         
Sector Update
-          Following our Top Glove upgrade last month, latex prices have rebounded to around RM7.50/kg due to price supporting measures by rubber producing countries.
-          Nevertheless, latex prices should continue to weaken further towards the RM7.00/kg mark over the next few months as worldwide demand for rubber remains weak.
 
Corporate Highlights
CIMB ' CIMB to end up as shareholder in APH?  Underperform                                                        
News update
-          According to the Financial Daily, Muhibbah Engineering and CIMB could end up as shareholders in Asia Petroleum Hub (APH) through a debt-to-equity swap and take charge of the Johor hub. The daily reported that APH owes CIMB RM840m, which was part of a RM1.4bn bridging loan facility provided back in 2006.
 
MBSB ' Earnings momentum losing steam?                                                      
Market Perform
Results note
-          MBSB's 4Q11 results were in line with our and consensus expectations.
-          Pre-tax profit was down 22% qoq due to weaker net interest income (-5.5% qoq) and non-interest income (-25% qoq) and higher loan impairment allowances (+26% qoq). 4Q11 net profit (-12% qoq), however, was cushioned by a lower effective tax rate of 17% (3Q11: 27%).
 

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