Dayang Enterprise; Buy; RM4.72
Price Target: RM5.90 DEHB MK
Focus on execution

2Q13 results were within our expectation but below consensus’. RM5bn order book provides 5-year earnings visibility. Proposes 5sen/ share interim dividend. Maintain BUY rating and RM5.90 TP.
 
Coastal Contracts; Buy; RM2.75
Price Target: RM3.35 (Prev RM2.70) COCO MK
Pieces falling into place

1H13 earnings in line; higher operating margin offset weaker revenue growth (delivered fewer vessels). Declared 3sen DPS, within expectations. Replenished order book to fuel earnings growth; securing a jackup rig contract could rerate the stock.  Maintain BUY with higher RM3.35 TP.
 
Eastern & Oriental; Buy; RM2.08
Price Target: RM3.10 (Prev RM2.90) EAST MK
Ripe for re-rating

Results below expectations, but expected topick up with aggressive growth strategy. STP2 approval approaching, Avira launch likely a sell-out. Maintain Buy, tweak TP to RM3.10.

Kossan Rubber Industries; Buy; RM6.17
Price Target: RM7.20 (Prev RM4.50); KRI MK
Beneficiary of stronger USD

2Q/1H13 results beat our estimates. Beneficiary of stronger USD and lower raw material prices; capacity expansion up to speed; raised FY13-14F net profit by 10-14%. Maintain BUY; raised TP to RM7.20, pegged to 15x FY14 EPS.
 
Southern Steel Bhd; Hold (downgrade from Buy); RM1.72
Price Target: RM1.80 (Prev RM1.70); SSB MK
Earnings still volatile

4Q/FY13 results beat our expectations. Expect excess industry capacity and softer steel prices to drag near term profitability. Downgrade to HOLD with revised RM1.80 TP.

CIMB; Hold; RM7.48
Price Target: RM8.70 CIMB MK
An unexciting quarter

2Q13 earnings were flat q-o-q excluding one-off gains booked in 1Q13; 1H13 net profit was in line. Good traction in consumer banking in Malaysia and Singapore, but volatility in treasury and markets overall and challenges in Indonesia. Declared 12.8 sen interim DPS (40% payout, DRS). Maintain HOLD and RM8.70 TP.
 
Plantation Companies
New policies in Indonesia

Indonesian government announced measures to address current account deficit on 23 Aug13. Amongst the proposals were higher palm oil-based biodiesel blending and tax holiday/ incentives for investments in palm oil sector. Despite the market-friendly proposals, we are skeptical on their implementations. Our top buys for the sector are AALI, IOI, FR and BAL.

Source: HwangDBS Research - 27 Aug 2013