Guan Chong; Fully Valued; RM1.64
Price Target: RM1.30 (Prev RM1.35); GUAN MK
Dragged by weak ASP

2Q13 net profit tumbled to RM7.4m, dragged down by lower ASP for cocoa powder and inventory writedown. Earnings risks  persist due to volatile cocoa price outlook. Maintain Fully Valued with lower RM1.30 TP.

Magnum Bhd; Buy; RM3.33
Price Target: RM3.80 (Prev RM3.95); MAG MK
Bearing fruits

Results in line, but continual decline in revenue per draw. Declared second interim DPS of 5 sen, dividend payout set to rise to >80% post-turning into a pure gaming play. Maintain BUY, tweak TP to RM3.80.

MSM Malaysia; Fully Valued; RM5.00
Price Target: RM3.80 (Prev RM3.40); MSM MK
Stronger margins

2Q13 net profit beat estimate at RM92.6m. Earnings were largely lifted by lower cost of sales; raised FY13- 14F EPS by 11% to reflect stronger 2Q13 earnings. Maintain cautious outlook for earnings because of its volatile, high costs. Maintain Fully Valued; lifted TP to RM3.80 after upgrading earnings and shifting valuation base to FY14F.

Perisai Petroleum; Buy; RM1.48
Price Target: RM1.80; PPT MK
Stable earnings

2Q13 result was within expectations. Newly-acquired FPSO to boost earnings in 4Q13. Maintain Buy with RM1.80 TP.

Petronas Chemicals; Hold; RM6.50
Price Target: RM6.15; PCHEM MK
Challenges ahead

2Q13 result was within expectations. Anticipate weak 3Q13 due to heavy maintenance activities in the pipeline. Declared 8 sen interim DPS. Maintain Hold with RM6.15 TP.

Petronas Gas; Buy; RM20.30
Price Target: RM22.20; PTG MK
Boosted by tax allowance

1H13 core earnings within our and market expectations. 2Q13 earnings boosted by tax allowance for LNG terminal. Expect stronger 2H with commencement of Melaka Regas plant. Key catalysts are new regas plant and Petronas’ larger gas capex; maintain BUY rating and RM22.20 TP.

QL Resources; Buy; RM3.43
Price Target: RM4.05; QLG MK
MPM unit remains key earnings driver

1QFY14 net profit of RM28.7m in line. PBT was lifted by MPM (stronger sales of fishmeal and surimi-based products). Expects MPM and ILF to drive forward earnings. Maintain BUY with RM4.05 TP.

Wah Seong Corp; Hold; RM1.77
Price Target: RM1.55 (Prev RM1.70); WSC MK
Slow recovery

2Q13 results significantly below expectations on losses from plantation and industrial trading. Cut FY3-15F earnings by 30%/10%/9%. Proposed 2 sen interim DPS. Maintain HOLD, revised TP lower to RM1.55.

WCT; Buy; RM2.37
Price Target: RM3.35; WCT MK
Poised to catch up

2Q13 net profit in line at RM57m. Confident of converting RM5bn tenderbook. WCT remains a laggard but will catch up. BUY, RM3.35 TP is based on SOP metric.

Wing Tai Malaysia; Buy; RM2.46
Price Target: RM2.90 (Prev RM2.55); WING MK
Much awaited KLCC launch soon

Results in line, 10sen DPS declared. Le Nouvel@KLCC launching in FY14 at higher ASP. Maintain Buy, lift TP to RM2.90 (35% discount to RNAV).

YTL Land; Buy; RM1.02
Price Target: RM1.40 (Prev RM1.60); YTLL MK
Sentul to the fore

Results above expectations, Capers bearing fruit. Strong take-up for Fennel; prime beneficiary of MRT. Maintain Buy, tweak SOP-based TP to RM1.40.

YTL Power; Hold; RM1.59
Price Target: RM1.70; YTLP MK
Dividend disappoints

FY13 profit in line with our estimate but 10% below market expectation. No dividend for 4QFY13; conserving cash for acquisitions. New acquisitions are crucial to cushion against earnings drop after expiry of Malaysian PPAs in 2015. Maintain HOLD rating and RM1.70 TP.

Source: HwangDBS Research - 23 Aug 2013