Axiata; Fully Valued; RM6.74
Price Target: RM5.80 (Prev RM5.90); AXIATA MK
XL a near-term dampener

1H13 earnings within expectations; 8sen DPS declared. Competitive environment heating up across all countries. Cut FY13-15F earnings by 3-4%. Maintain Fully Valued with lower RM5.80 TP.

MMC Corp; Buy; RM2.50
Price Target: RM4.95; MMC MK
Short-term pain, long-term gain

Weak 2Q13 results due to ongoing maintenance at Tanjung Bin power plant. Key catalysts: PDP role for MRT Line 2, listing of Malakoff, and new land deals in Tanjung Bin. Cutting earnings. BUY, TP RM4.95 (20% discount to SOP).

Muhibbah Engineering; Buy; RM2.18
Price Target: RM3.10; MUHI MK
Stronger construction earnings

2Q13 net profit of RM21m was in line; y-o-y earnings growth largely supported by infrastructure construction. Expect 2H13 earnings to be driven by higher progress billings for existing orderbook. Maintain BUY with RM3.10 TP.

RHB Capital; Buy; RM7.48
Price Target: RM9.20 (Prev RM10.30); RHBC MK
Lower targets

2Q/1H13 earnings are below our and consensus’ expectations. Cut earnings forecasts to impute higher provisions and expenses. Declared single-tier interim DPS of 6 sen; DRP applies. Maintain BUY with lower RM9.20 TP.

Sime Darby; Hold; RM9.39
Price Target: RM9.65; SIME MK
Flattish year ahead

Core 4QFY13 earnings of RM971m was above our and consensus’ expectations. Weaker-than-expected Plantations profit was offset by better-than-expected profits from other segments, lower corporate expenses and lower tax. Final DPS of 27 sen declared; Dividend Reinvestment Plan proposed, subject to shareholders’ approval. FY14F/15F earnings raised by 5%/7%, TP unchanged at RM9.65; HOLD rating maintained.

UMW Holdings; Hold; RM12.58
Price Target: RM12.30 (Prev RM12.70); UMWH MK
Drag from slow automotive earnings

2Q13 net profit of RM251m is below expectation; interim DPS of 10sen declared. Stronger O&G earnings and lower effective tax rate were partly offset by weaker Toyota sales. Cut FY13-15 EPS by 4-6%. Maintain HOLD with lower TP of RM12.30.

Source: HwangDBS Research - 2 Sep 2013