Sime Darby; Hold
Price Target: RM9.50 (Prev RM9.60); SIME MK
Lower contribution from Industrial

3QFY13 earnings of RM691m (-2% q-o-q; -21% y-o-y) - slightly below our expectations, in line with consensus. 3QFY13 Industrial profit was weaker than expected, but partly offset by better-than-expected Plantations profit. FY13F-15F earnings revised by -1% to +3%; TP is adjusted to RM9.50 (based on SOP).
HOLD call maintained for c.4% total return.

Muhibbah Engineering; Buy
Price Target: RM2.15; MUHI MK
Steady growth

1Q13 net profit of RM20m is within expectations. Growth in net profit was lifted by better contributions from infrastructure construction, cranes and concession segments. Orderbook as at end-May stands at RM2.08bn.
Maintain BUY at RM2.15 TP based on SOP-valuation.

Guan Chong; Fully Valued
Price Target: RM1.35 (Prev RM1.90); GUAN MK
Hit by adverse cocoa market

1Q13 net profit of RM16.5m way below expectations; earnings will continue to be under pressure amid weak cocoa market. Cut FY13-15F earnings by 26-29% to factor in lower sales volume and weaker margins.
Downgrade to Fully Valued, TP cut to RM1.35.

CB Industrial Product; Buy
Price Target: RM3.20 (Prev RM3.30); CBP MK
Steady growth of core business

1Q13 net profit of RM19m was below expectations, dragged down by higher tax rate and minority interest. Declared first interim net DPS of 5 sen. Reduced FY13-15F net income by 6-7%. Maintain BUY, TP revised down slightly to 3.20 TP.

Source: HwangDBS Research - 3 Jun 2013