AirAsia; Hold
Price Target: RM2.90; AIRA MK
Higher losses from Japan
1Q13 net profit of RM137.6m below our and consensus expectations. Higher losses from Japan offset Thai profits. Target to resolve Japan management differences by mid-June; Indonesia AirAsia listing by 1Q14. Maintain HOLD with RM2.90 TP.

Axiata; Fully Valued
Price Target: RM5.30; AXIATA MK
Celcom still the star
1Q13 core net profit was within expectations. Celcom remains resilient although margin erosion at XL and Dialog Axiata hurt earnings y-o-y. Data will continue to fuel revenue growth but associated network costs could be a drag. Maintain FULLY VALUED with RM5.30 TP.

Boustead Holdings; Hold
Price Target: RM5.30; BOUS MK
Earnings and dividends in line
1Q13 saw improvement at heavy industries division but plantation unit remained weak. Declared 7.5 sen DPS. Weak CPO prices likely to cap any rerating. Maintain HOLD rating and RM5.30 TP (20% discount to SOP value).

Dayang Enterprise Holdings; Buy
Price Target: RM5.90; DEHB MK
On track for record profit
1Q13 result within our expectation but below consensus’. Strong earnings visibility supported by RM3.5bn order book which will last until FY18. Maintain BUY rating and RM5.90 TP.

KL Kepong; Fully Valued
Price Target: RM18.85; KLK MK
Weak commodity prices
2QFY13 result within expectations. Lower plantation profit was partly offset by strong oleochemicals operation. Declared 15 sen interim single tier DPS. Maintain FULLY VALUED rating and RM18.85 TP.

Lafarge Malayan Cement; Hold
Price Target: RM9.40; LMC MK
Tough near-term operating conditions
1Q13 below expectations; price competition and higher operating costs continue to plague earnings. 8sen DPS declared – 125% payout. Resilient cement demand expected but dimmed by volatile rebates in the near-term. Maintain HOLD with higher RM9.40 TP.

QL Resources; Buy
Price Target: RM4.00; QLG MK
Earnings supported by MPM
4QFY13 net profit of RM32m was supported by higher contribution from MPM and POA segments. FY13 earnings were driven by higher volumes and operating margins at MPM (PBT +29% y-o-y). Proposed first and final 4.5sen net DPS (1.3% net yield), in line. Maintain BUY rating and RM4.00 TP.

WCT; Buy
Price Target: RM3.35; WCT MK
Solid start, still a laggard
1Q13 earnings in line, driven by higher construction billings. Strong earnings visibility supported by c.RM2.8bn orderbook. Confident of securing another RM1.5bn worth of new wins this year. Still a laggard; maintain BUY rating and RM3.35 TP.