CIMB; HOLD; RM7.09
Price target: RM7.90; CIMB:MK
Lower targeted ROE in 2014

4Q/FY13 net profit in line; larger contribution from consumer and corporate banking. Investment banking, treasury and markets faltered. 2014 targets: 13.5-14% ROE; 14% loan growth, 35-40bps credit charge, >8.5% CET-1. Declared 11 sen second interim DPS (DRS applies), taking total payout ratio to 40% (in line). Maintain HOLD and RM7.90 TP.

Hong Leong Bank; BUY; RM14.10
Price target: RM18.00; HLBK:MK
Picking up traction

2Q14/1H14 earnings in line with our estimates, slightly ahead of consensus; normalised provisions. Stable NIM, loan growth picking up; loan-to-deposit ratio inching closer to 80%. Declared 15sen interim DPS (within expectation). Maintain BUY, RM18.00 TP.

Hong Leong Financial Group; BUY; RM15.82
Price target: RM18.80; HLFG:MK
Steady contributions from insurance and investment bank

2Q/1HFY14 results were in line with our and consensus estimates . Steady earnings from insurance and investment banking; HLB remains key profit contributor. Maintain BUY and RM18.80 TP.

Lafarge Malayan Cement Bhd; Upgraded to HOLD; RM8.54
Price target: RM8.55 (Prev RM8.00); LMC:MK
Surprise margin improvement

FY13 earnings beat expectations, driven by margin expansion and higher volumes. Declared 41 sen DPS, implying 4.8% dividend yield. Expect stable near-term demand and subdued coal prices; raised FY14-15F profit by 5-8%. Upgrade to HOLD with higher RM8.55 TP.

Parkson Holdings Bhd; FULLY VALUED; RM2.81
Price target: RM2.25 (Prev RM3.00); PKS:MK
Persistent losses at PRG

2QFY14 net profit missed our and consensus’ expectations. Earnings were dragged by weak China operation, while Malaysia and Singapore markets were flat. Cut FY14-15 EPS by 28-31%. Maintain Fully Valued with RM2.25 TP.

Coastal Contracts; BUY; RM4.43
Price target: RM5.35 (Prev RM3.75); COCO:MK
Strong end to the year

FY13 earnings beat expectations; underpinned by stronger margins and vessel deliveries. RM1.1bn outstanding order book and expected charter contracts to underpin earnings going forward. Maintain BUY with higher RM5.35 TP.

TSH Resources; BUY; RM3.00
Price target: RM3.70 (Prev RM3.60); TSH:MK
Record high quarter

4Q13/FY13 core net profit beat our and consensus’ estimates. Stronger earnings attributed to higher FFB production and operational efficiencies. Raised FY14-16F earnings by 5-6%. Maintain BUY with RM3.70 TP.

Globetronics Technology; BUY; RM3.28
Price target: RM3.90 (Prev RM3.50); GTB:MK
Another record year

4Q13 net profit of RM13m in line. Earnings were driven by higher volumes and better operational efficiencies . Strong net cash
(RM0.52/share) to support dividends. Maintain BUY with higher RM3.90 TP.

WCT Bhd; BUY; RM2.14
Price target: RM3.00 (Prev RM3.35); WCTHG:MK
Profit lifted by revaluation gain, but WCT is an attractive laggard

Overall weak quarter for construction and property. Cut earnings by 10-13%. BUY, trimmed SOP-derived TP to RM3.00.
 

CB Industrial Product; BUY; RM3.87
Price target: RM4.50 (Prev RM3.50); CBP:MK
Strong support from Special Purpose Vehicle segment

4Q13 net profit of RM39m beat expectations. Earnings growth was driven by larger contribution and higher margins from E&C and Special Purpose Vehicle segments. Increase FY14-15F EPS by 6-9%. Maintain BUY with higher RM4.50 TP.

Source: HwangDBS Research - 26 Feb 2014