GENP (FV RM10.13 - BUY) Company Update: Steady Long TermGrower We are maintaining our Buy call on Genting Plant with our FV unchangedat RM10.13. Genting Plant is a core Malaysian plantation holding and one of thebiggest, best managed and most highly focused. While its PE valuation looksstretched, this is due to the stock pricing in the value of its landbank inIskandar Region, which we estimate to be worth between RM1.71 and RM2.13 pershare. Knocking off the Iskandar land, Genting Plant is trading at 14.7x CY12and 13.6x CY13 earnings.

Profit taking continues. The FBM KLCI declined 5.83 pts to 1,583.75 amid continued profit-taking andweak sentiment in  regional markets.Decliners thumped advancers 352 to 342 while 317 counters were unchanged. Amongthe key market news today  are:.Navis mayincrease  its  stake in SEG International to over 33% that could trigger a general offer, China's CSR Zhuzhou Electric Locomotive Co Ltdwins RM530m LRT deal, Favelle Favco secured RM102.1m worth of contracts, XianLeng reported irregular capex amounting to RM90.7m and Felda Global VenturesHolding will soon submit its IPO prospectus to the SC. Meanwhile, TDM securesnod on land for Terengganu hospital, Yung Kong unit sells land for RM12.2m,TNB's CFO resigns and the government postpones Lynas rare-earth mine licence.On the global front, US stocks closed with weekly losses as investors weighedEurope's return to the headlines against positive weekly claims data. With theDow declining 14.61 pts  to 13,060, localinvestors  are expected to continuestaying on the sidelines, pending any fresh lead.

A general offer may be announced for SEGi by as early as theend of next week should issues between interested stakeholders and NavisCapital Partners, which recently became the second largest shareholder, be ironedout. Sources said while nothing had been confirmed, a GO is a very realpossibility and would depend on several factors, including board-levelrepresentation, level of management control by Navis and key performanceindices. Sources also did not rule out Navis bringing in SEGi MD Datuk SeriClement Hii, EPF or another GLIC as a joint offeror in the GO. (StarBiz) Pleasesee accompanying report

Three former directors of Xian Leng Holdings Bhd did notfollow the group's accounting procedures in capital expenditure (capex)amounting to RM901.7m between FY05 and FY08, a special audit of the company hasfound. According to filling with Bursa, the group said the three formerdirectors and substantial shareholders former managing director Ng Huan Tong,his wife Lim Wan Hong and Chua Chong Seng were the signatories of cash chequesamounting to RM85.7m given out under questionable circumstances to pay fourcontractors for the construction of fish ponds. (Financial Daily)

Favelle Favco has secured 5 purchase order contracts worthRM102m through three of its wholly-owned subsidiaries. It said the contractswere secured through Favelle Favco Cranes (M) SB (three contracts), Favelle FavcoCranes Pty Ltd and Kroll Cranes A/S (one contract each). 'The contracts securedare for the supply of three offshore cranes and spare parts,' it said.(Financial Daily)

Hitachi Ltd has initiated take-over proceedings to acquireeBworx, a financial IT solutions company headquartered in Malaysia. Hitachiintends to expand its system solutions business in South-East Asia and China,by gaining access to eBworx's extensive customer base, software products, anddevelopment base, including highly-skilled human resources. The shareacquisition proposal is subject to approval from regulatory authorities.Hitachi also aims to establish a one-stop service framework targeting Japaneseand local financial institutions that were increasing their investments inglobal operations especially in Asia. By acquiring eBworx, Hitachi would have abusiness platform to provide comprehensive system solutions to financialinstitutions as eBworx has  an extensivetrack record and established reputation with leading banks in South-East Asiaand China. (StarBiz)

Navis Capital Partners has bought a majority stake in thecountry's 3^rd largest cinema operator MCAT Box Office SB (MBO) at aprice of RM104m. The investment was done via a combination of existing sharesfrom the current sole shareholder, Tan Sri Abdul Rashid Abdul Manaf, and newshares issued for a substantial capital injection from Navis. Upon completionof the exercise, Navis and Rashid will emerged as the majority shareholder ofMBO. (StarBiz)

Tenaga Nasional's CFO has resigned yesterday to pursuecareer opportunities elsewhere, according to a Bursa Malaysia filling. The47-year-old chartered accountant Mohd Rafique Merican resigned 'to pursuebetter opportunity and career advancement,' leaving  without any disagreement with the board ofdirectors nor any issues to be highlighted to TNB's shareholders. (StarBiz)Please see accompanying report.

The Terengganu state government has approved  the lease of land in Batu Burok to build andoperate a new 130-bed specialist hospital which is operating at or near maximumcapacity,' said its chairman, Datuk Roslan Awang Chik, said in a statement.'The hospital, on a 23,424 sq m land, will be the city's flagship specialist hospitalthat will serve the approximately 338,000 people of Kuala Terengganu.'(StarBiz)

Naza TTDI SB is eyeing a listing on the local bourse in thenext 3-5 years to achieve its aim of becoming one of the largest propertydevelopers in the country. Deputy executive chairman-cum-group MD SM Faliq SM Nasimuddinsaid although internally the company was 'all set to go', it would be moreprudent to wait for the right time to undertake the listing exercise. 'We wantto ensure the company realizes the right value from the listing and will waitfor the right market conditions and external factors before proceeding,' Faliqtold StarBiz. He said the local market would be quite challenging these fewyears given the high number of projects coming onstream, especially high-riseresidential and commercial projects. To address the market uncertainties, Faliqsaid Naza TTDI would be launching projects with good demand including terracehouses, shop lots, and also its 'bread and butter' township products. (StarBiz)

China's one-year central-bank bill yield dropped to thelowest level in 11 months on  speculationPremier Wen Jiabao will ease monetary policy to revive growth in Asia's biggesteconomy. The yield declined 17bps last month to 3.31%, the fastest declinesince Oct, compared with similar-maturity U.S. Treasuries that rose 1bps to 0.16%.Speculation that Wen will reduce banks' reserve requirements or interest rateshas increased since he said policy should be fine-tuned 'as soon as possible'in comments reported 3 April by state media. [Bloomberg]

Taiwan's consumer prices rose in March on costlier fuel,limiting the central bank's scope to cut interest rates. The consumer-priceindex climbed 1.21% from a year earlier, compared with a revised 0.23% increasein Feb, the statistics bureau said in Taipei. Taiwan joined Asian nationsincluding China and Vietnam in raising fuel prices this year as crude oil costsclimbed. The island's industrial output recovered in February for the firsttime in four months and exports rebounded, prompting the central bank to say itwould focus on inflation after leaving borrowing costs unchanged for a thirdmeeting on 22 March. [Bloomberg]

UK manufacturing output unexpectedly declined for a secondmonth in Feb, indicating the economy's return to growth may be uneven. Factoryoutput fell 1% from Jan, the most since Apr last year, the Office for National Statisticssaid in London. Manufacturing, which accounts for 10% of the economy, wasrevised to a 0.3% decline in Jan from a 0.1% increase. Reports this week showedexpansion in services, manufacturing and construction accelerated in March,suggesting the economy probably returned to growth in the first quarter.[Bloomberg]

Prime Minister Mario Monti's bill to overhaul the country'slabour market, his latest effort to spur Italy's economic growth, will be sentto parliament today for review after President Giorgio Napolitano signed thedraft law. Monti presented the bill yesterday after watering down some measureseasing firing rules to secure support of his political allies in parliament.Mont backed away from his original goal of allowing companies to fire workersfor economic reasons without fear of reinstatement, and in the draft labourcourts will still have a limited right to reverse those dismissals. [Bloomberg]

Employers probably added more than 200,000  workers to payrolls in March for a fourthstraight month as US companies gained confidence  that sales will keep improving, economists said before a government report. Hiringincreased by 205,000 after rising by 227,000 in Feb, according to the medianprojection of 80 economists surveyed by Bloomberg News. The last timeemployment advanced at a similar pace for as many months was late 1999 into2000. The jobless rate probably held at a three-year low of 8.3%. [Bloomberg]

Brian Sack, markets group chief at the Federal Reserve Bankof New York, is resigning this year after leading operations  in implementing the central bank's monetary policy since June 2009. Sack,41, will remain at his current post until 29 June, the district bank said in astatement on its website. He will then be placed on leave until his resignationfrom the New York Fed effective 14 Sept, according to the statement. As head ofthe markets group, Sack oversaw the record expansion of the Fed's balance sheetwhile policy makers turned to unconventional tools such as twoquantitative-easing programs in the aftermath of the credit crisis. [Bloomberg]

Source: OSK188