AirAsia; Hold; RM2.98
Price Target: RM2.90; AIRA MK
Challenging environment

2Q13 results were below our expectations. Yields suffered under intense competition from regional and domestic carriers. Cut FY13F net profit following weak 1H13 results. Maintain HOLD rating and RM2.90 TP.

Boustead Holdings; Hold; RM5.24
Price Target: RM5.20 (prev RM5.30); BOUS MK
Yield story for now

1H13 earnings below expectation, dragged down by plantations and pharmaceuticals. Trimmed earnings after imputing lower CPO prices. Listing valuation for plantation operation may be capped by weak CPO prices. HOLD for yields; nudged down TP to RM5.20.

IOI Corp; Buy; RM5.30
Price Target: RM5.95 (prev RM6.15); IOI MK
On track for property spin off

4QFYJune13 core pretax of RM314m was below expectations; 8.5 sen DPS declared. Ex fair value gains, Property reported weaker than expected operating profit; Plantations and Manufacturing were also below our estimates. FY14F/15F/16F earnings tweaked by -3.4%/-2.6%/-0.4% to account for lower cash level; TP is adjusted to RM5.95 (based on SOP). BUY call reiterated for 12% upside to revised TP.

JobStreet Corp; Buy; RM4.11
Price Target: RM4.90; JOBS MK
Earnings in line

2Q13 net profit of RM16.6m in line. Operating profit driven by Singapore and Philippines operations with stronger online job postings. Declared 2nd interim net DPS of 3.5 sen; announced 1-for-2 share split exercise’s ex-date. Maintain BUY with RM4.90 TP.

KLCC Property; Buy; RM6.12
Price Target: RM8.55; KLCCSS MK
Stapled structure shines

1H13 within expectations; strong bottom line growth driven by improved office and retail components and transition to a stapled structure 7.45sen DPS declared – 95% of distributable income. Near term earnings growth to be driven by Suria KLCC; office assets will be cash cows. Maintain BUY with RM8.55 TP based on SOP.

Malaysian Bulk Carriers; Buy; RM1.75
Price Target: RM2.10; MBC MK
Riding on O&G boom

2Q13 result was within expectations. Impressive earnings from POSH set to drive a successful IPO in Singapore. Maintain BUY with RM2.10 TP.

Maybank; Buy; RM10.10
Price Target: RM11.80; MAY MK
Strong forex/investment gains

1H13 earnings were within our/consensus estimates, led by strong revenues but offset by higher provisions. Accelerating ETP could hasten 2H13 growth; regional markets could be volatile. Declared 22.5 sen interim dividend (62% payout), eligible for dividend reinvestment plan. Maintain BUY rating and RM11.80 TP.

Petronas Dagangan; Fully Valued; RM27.70
Price Target: RM19.70; PETD MK
Lower MOPS prices drag earnings

2Q13 net profit of RM197.1m in line with expectations. MOPS prices trending higher in 3Q13 and weakening Ringgit will have positive impact on margins. Interim net dividend of 16.3 sen declared in 2Q13. Maintain FULLY VALUED at RM19.70 TP.

PPB Group; Hold; RM14.10
Price Target: RM13.30 (prev RM12.90); PEP MK
Unexciting for now

2Q13 profit was below expectation due to weaker Wilmar results. Still lacks a major catalyst; weak Wilmar earnings could cap upside. Declared 8 sen interim dividend (vs 7 sen in 2Q12). HOLD, raised TP to RM13.30 after rolling forward valuation base.

Source: HwangDBS Research - 22 Aug 2013