PPB Group; Hold; RM12.00
Price target: RM12.25 (Prev RM11.00); PEP MK
Wilmar lifts overall quarter
3Q12 above due to stronger Wilmar earnings. But forex hedging losses and weak livestock earnings dragged earnings. Raising earnings by 3-8%. Upgrade to HOLD with higher TP of RM12.25.

Pos Malaysia; Buy; RM2.98
Price target: RM4.60; POSM MK
Stronger courier earnings
2QFY13 net profit of RM30.5m was within expectation. Stronger courier revenues and earnings. Declared 6 sen interim net DPS. Maintain BUY rating and RM4.60 TP.

Coastal Contracts; Buy; RM2.00
Price target: RM2.25 (Prev RM2.35); COCO MK
Persistent headwinds
9M12 net profit was below expectations. Excess supply continues to cap pricing power of OSV vendors. Trimmed FY12-14F earnings by 3%-8%. Maintain BUY; nudged down TP to RM2.25.

Landmarks; Buy; RM1.01
Price target: RM2.45; LMK MK
Riding the Bintan upswing
Booked RM5.5m losses in 3Q12, taking 9M12 to RM10.3m losses, larger than we expected. Refurbishment work at The Andaman to be completed next month; Phase 1 Treasure Bay to open in 2013. We adjusted for larger losses for FY12 after accounting for higher costs for The Andaman. Maintain BUY rating, RM2.45 TP is pegged to 30% discount to FY12F BV; earnings irrelevant for now.

TRC Synergy; Buy; RM0.58
Price target: RM0.84; TRC MK
Earnings recover in 3Q12
3Q12 earnings were within expectation. Expect strong FY13F result driven by record orderbook. Cheap valuation; maintain BUY rating for 44% upside to our RM0.84 TP.

Wah Seong; Hold; RM1.80
Price target: RM1.65 (Prev RM1.90); WSC MK
Near-term headwinds
3Q12 result missed expectations due to losses at O&G and renewable energy segments. Cut FY12-14F earnings by 22%/12%/3%. Maintain HOLD rating; cut TP to RM1.65.

MSM Malaysia Holdings; Fully Valued; RM5.06
Price target: RM3.80 (Prev RM3.85); MSM MK
Another disappointing quarter
3Q12 result missed our and consensus’ expectations. Earnings were dragged by higher raw sugar costs and weaker domestic and export sales volumes. Cut FY12F – 14F earnings by 10%/9%/9% after reducing sales volumes. Maintain Fully Valued rating, with revised RM3.80 TP after rolling over to 11x FY13F EPS.

Source: HwangDBS Research - 27 Nov 2012