RHB Capital; Buy; RM7.85
Price Target: RM8.80 (Prev RM9.20); RHBC MK
Temporary overhang

Share price overhang will disappear once credit costs concern is addressed. DRP is a good capital management tool but ROE will be diluted over the longer term if profits grow slower than equity base. Cut FY13-15F EPS by 4-6% after raising provisions; imputed ROE dilution from DRP. Maintain BUY; lowered TP to RM8.80

Dayang Enterprise Holdings; Buy; RM5.22
Price Target: RM5.90; DEHB MK
Busy year ahead

3Q13 results in line, but missed consensus’ estimates. Ramping up activities to meet c.RM5bn order book. Maintain BUY rating and RM5.90 TP.

Eastern & Oriental; Buy; RM1.95
Price Target: RM3.10; EAST MK
Multiple growth drivers

Results fell short, but committed to achieve KPIs underpinned by strong unbilled sales & launch pipeline. Potential re-rating from STP2 approval in early-2014. Maintain BUY and RM3.10 TP.

Hong Leong Bank; Buy; RM14.22
Price Target: RM18.00; HLBK MK
Lifted by write-backs

1QFY14 earnings lifted by write-backs; excluding that, pre-provision profit is in line at 23% of our FY14 forecast. Expect provisions to normalise in next few quarters; expenses to pick up as it continues to open new branches and rationalise its network; loan growth to accelerate. Maintain BUY, RM18.00 TP.

Hong Leong Financial Group; Buy; RM15.30
Price Target: RM18.80; HLFG MK
Strong traction in insurance

1QFY14 results within our and street expectations; strong insurance and commercial banking revenues. Insurance contribution rose to 10% of PBT from 6% a year ago. Declared 1st interim DPS of 13 sen; ex-date is 9 Dec. Maintain BUY and RM18.80 TP.

IJM Corp; Buy; RM5.76
Price Target: RM7.20; IJM MK
Staying focused on WCE

2Q14 results in line; strong construction earnings. To continue to book stellar property earnings. Expect WCE financial close by 1 January 2014. Maintain BUY rating and RM7.20 TP; top pick for sector.

IJM Plantations; Hold; RM3.35
Price Target: RM3.30; IJMP MK
Costs remain high

2QFY14 core net profit of RM32m in line. Earnings were pressured by lower CPO prices and higher operating costs. Maintain HOLD rating and RM3.30 TP.

Source: HwangDBS Research - 27 Nov 2013