Axiata; Fully Valued; RM6.70
Price Target: RM5.70 (prev RM5.75); AXIATA MK
On track but snags abound

New developments at Celcom encouraging but competition could be a dampener. Strengthening opcos may be hampered by XL. Maintain FULLY VALUED with lower RM5.70 TP.

DRB-HICOM; Buy; RM2.43
Price Target: RM3.50; DRB MK
Stronger auto & services profits

DRB appears to be reaping better operational efficiencies for Proton. Expect higher TIV for Proton next year, led by new model launches and export markets. BUY, SOP-derived TP of RM3.50.

Gas Malaysia; Buy; RM3.89
Price Target: RM3.95; GMB MK
Yield play with promising prospects

3Q13 results were within our and market expectations. Rising gas volume to drive FY14-15F earnings growth. Promising prospects with rising gas demand. Strong balance sheet with 4% sustainable yield; maintain BUY.

Genting Bhd; Hold; RM10.36
Price Target: RM10.20 (prev RM9.40); GENT MK
Awaiting re-rating catalysts

Results below expectations. Lack of short-term catalysts, but warrants are in-the-money (9% discount). Maintain HOLD with SOP-based RM10.20 TP.

Genting Malaysia; Hold; RM4.28
Price Target: RM4.60 (prev RM4.05); GENM MK
Short-term pain for long-term gain

Results in line aided by higher VIP win rate; themepark closure affected volume of business and visitors. Look forward to seasonally stronger 4Q. Maintain HOLD, raise SOP-based TP to RM4.60.

Southern Steel; Hold; RM1.68
Price Target: RM1.80; SSB MK
Hurt by cheap imports

1Q14 results missed our and consensus’ estimates; sales volume improved, but lower selling prices dampened margins. Expect weak steel prices to continue to drag near term profitability; cut FY14F/15F/16F earnings by 26%/18%/14%. Declared 1st interim DPS of 2 sen; ex-date is 16 Dec. Maintain HOLD and RM1.80 TP.

Telekom Malaysia; Fully Valued; RM5.14
Price Target: RM4.80; T MK
Lifted by higher EBIT margin

9M13 earnings above expectations on lower tax rate and higher EBIT margins, but expect margin dilution in 4Q13. Internet and Data revenue drove the top line, backed by wholesale internet and retail subscriptions. Unifi to drive revenue growth, but still needs greater scale to be EBIT accretive. Raised FY13-15F earnings by 1-9% but maintain FULLY VALUED with RM4.80 TP.

Source: HwangDBS Research - 29 Nov 2013