Guan Chong; Fully Valued; RM1.65
Price Target: RM1.35; GUAN MK
Earnings risks ahead

Weak 2Q13 earnings reports by industry peers suggest lower profits q-o-q for Guan Chong. Depressed margins due to weak selling prices (especially for cocoa powder) pose earnings risk. Maintain Fully Valued with RM1.35 TP.

Bumi Armada; Fully Valued; RM3.75
Price Target: RM3.30; BAB MK
Growth priced in

2Q13 result within our expectation but below consensus’. Stable earnings led by strong RM7.5bn order book. Maintain Fully Valued rating and RM3.30 TP.

KL Kepong; Fully Valued; RM21.24
Price Target: RM18.20 (prev RM18.70); KLK MK
Uninspiring performance

3QFY13 result was below expectations. Dragged by weak plantation segment on higher cost and lower production. Maintain Fully Valued, TP lowered to RM18.20.

Malaysian Airlines; Fully Valued; RM0.34
Price Target: RM0.30 (prev RM0.35); MAS MK
Yields declining

2Q13 net loss of RM239m was below expectations. Increased competition continues to suppress yields. Higher costs going forward as fuel prices rise and Ringgit weakens. Fully Valued with RM0.30 TP.

Dialog; Hold; RM2.68
Price Target: RM3.00; DLG MK
Strong 4QFY13 sales

4QFY13 result was within expectations. Higher costs at upstream projects was offset by strong contribution from EPCC and Specialist Products & Services. Proposed 2.2sen final single-tier dividend. Maintain Hold rating; nudged down TP to RM3.20.

TSH Resources; Hold; RM2.29
Price Target: RM2.40; TSH MK
Growth is intact

2Q13 results were within expectations. Impressive 3-year FFB CAGR of 18% to cushion against weak CPO prices. Maintain Hold rating and RM2.40 TP.

Source: HwangDBS Research - 21 Aug 2013