Malaysia Budget 2014
Narrowing the fiscal deficit

Lower subsidies and GST would improve Government finances but could crimp consumer spending and pose further challenges for consumer plays. Complete removal of sugar subsidies; relief for gaming companies and breweries. Property sector gets hit with higher gains tax and removal of developer financing schemes though worse was speculated. No delays for construction; West Coast Expressway and Southern double track proceeding.
 

DRB-Hicom; Buy; RM2.46
Price Target: RM3.30; DRB MK
Completing the last mile

Synergistic acquisition of KLB. Muted impact on earnings and balance sheet. Management control and synergies could see  stronger turnaround. BUY, TP of RM3.50 (20% discount to SOP).

Source: HwangDBS Research - 28 Oct 2013