RHBInvest Research Highlights 15th February 2012

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RHBInvest Research Highlights 15th February 2012

kltrader

Publish date: Wed, 15 Feb 2012, 10:21 AM

15th February 2012

Malaysia Equities

Top Story

UMW ' Still Expensive Underperform

Results Preview

- UMW is scheduled to report 4Q11 results after market close on 24 Feb. Our 2011 earnings estimates are nearly 5% below consensus and imply 4Q11 net profit of RM165m.

- We believe the 4Q11 results are relatively academic with the market focusing on 2012 prospects, signs of a turnaround at the oil & gas division in addition to the dividend payout.

Sector Update

Property ' Singapore buyers brighten up property outlook in Johor Neutral

Sector Update

- The Iskandar region has come out with another RM80bn development that covers Danga Bay , the JB city centre and the Tebrau coast. Based on our checks, about half of the 3,000-acre site would require dredging/reclamation. As such, Nusajaya, which is already miles ahead, is in a better position to capture the immediate demand for properties

Corporate Highlights

QL Resources ' MPM Margins To Recover; Further Expansion For Its ILF Division Outperform

Visit Note

- In the 1HFY03/12, MPM division margins dropped by 3.6%-pts yoy to 12.3% vs. 1HFY03/11 of 15.9% primarily due to weaker fish landing during the period. However, we understand that 3QFY03/12 fishing activities have been fairly stable.

Hektar REIT ' Offers The Highest Yield Among Retail REITs Outperform

Briefing Note

- The Manager is confident that refurbishment works on Subang Parade and Mahkota Parade will yield fruition in FY12, driven by 20% rental reversion in FY12 and improvement in shopper traffic.

Dayang ' New Talisman Contract Win Outperform

News Update

- Yesterday, the company announced that it had won a contract worth RM125m to provide general topside maintenance to Talisman Malaysia for 3+2 years. We are positive on the new win as it shows that the company continues to be one of the favourites for topside maintenance.

Dialog ' Expect a stronger 2HFY12 Outperform

Results Note

- 2QFY06/12 results appear to be slightly below expectations, with 6MFY12 net profit accounting for 40.2% of our full-year forecast and 43.0% of consensus estimates. Nevertheless, we are keeping our forecasts as the company normally performs stronger in the 2H of the financial year.

AMMB ' Results in line but CASA and NIMs Exhibit Positive Trend Market Perform

Results Note

- 3QFY03/12 results were in line with our and consensus expectations.

- Positive trends include: 1) NIM expanded 4bps qoq as AMMB continued to trade off loan growth for margins; 2) strong CASA growth (+13% qoq; +26% yoy); and 3) further improvement in asset quality. Gross loan growth rebounded (+2.3% qoq) after the qoq contraction in 2Q but annualised growth rate of 5.5% was in line with our 6% assumption. Loan growth was led by business and corporate loans. Main negative was weaker income level resulting in a 3% qoq net profit drop.

RCE Capital ' Net loan book contracted further Market Perform

Results Note

- 3QFY03/12 results were in line with our expectations. QoQ, net profit fell 7.8% mainly due to higher loan impairment allowances (+365% qoq).

- RCE's net loan book as at end-Dec 2011 contracted 2.1% qoq (-17.8% yoy), the 4^th consecutive quarter where net loans have declined (qoq basis). We think this reflects the challenging environment the cooperatives are operating in due to competition and regulatory changes.

Regional Equities

Bank Danamon ' No surprises Outperform

Results Note

- 4QFY11 results were in line with expectations. 4Q net profit was down 9% qoq mainly as credit cost rose 20bps qoq to 66bps.

- 2011 loan growth was 23%, underpinned by the SME and mass market (mainly 2- and 4-wheelers) segments. The micro lending loan book expanded by just 7.4% yoy, possibly due cautiousness towards that segment given that NPLs had been on the rise.

DAYANG (5141)QL (7084)HEKTAR (5121)UMW (4588)DIALOG (7277)AMBANK (1015)RCECAP (9296)

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