Sure the recent results were not great but two key things to consider - i) property sales have been strong and products are in affordable range with close proximity to MRT and ii) Young plantation land bank which will still show strong FFB growth while higher CPO prices is a bonus (Bear in mind plantations is a small part of earnings only now). My guess on why the big move downwards is the presence of recently issued covered warrants and the investment bank which owns the shares.

Report by AllianceDBS

MKH Bhd: BUY RM3.78; MKH MK
Fundamentals intact;
Price Target : 12-Month RM 5.70 (Prev RM 5.85)
• 3QFY14 results missed expectations
• Record unbilled property sales and strong FFB output growth to drive 29% earnings CAGR (3-year)
• High-conviction BUY with revised RM5.70 TP
Highlights
Weak quarter. Excluding RM22m unrealised forex loss, MKH booked RM28m core profit in 3QFY14 (-2% q-o-q, -6% y-o-y). This takes 9MFY14 core profit to RM88.4m (+13% y-o-y), or 65% of our earlier full-year projection. The weaker result was largely due to slower recognition for new launches in the preliminary development stage and higher-than-expected effective tax rate for the Group.
Our View
Record property sales. MKH is on track to achieve its record high property sales target of RM800m for FY14 (vs RM580m in FY13). It has booked RM548m sales in 9MFY14 and has RM178m booking sales (as at Jun14) yet to be recognised. Thanks to the robust sales, unbilled sales were at an unprecedented RM690m in June, which is 1.4x its FY13 property revenue. Its large exposure to affordable housing and landed residential projects in its stronghold Kajang/Semenyih growth corridor coupled with low land cost at prime locations will make MKH the largest beneficiary of KL South migration.
Exponential growth from Plantation division. FFB output grew 37% q-o-q to 81.7k MT in 3QFY14, taking 9MFY14 FFB volume to 212k MT (78% of our full-year projection). We also expect seasonally higher FFB output in 4QFY14. All in, plantation profit is projected to expand at 3-year CAGR of 61% because of the favourable palm tree age profile, and account for 27% and 34% of FY14F and FY15F Group earnings, respectively (vs 17% in FY13).
Recommendation
Maintain BUY. We nudged down FY14-16F earnings by 12%/10%/7% after imputing DBS’ latest forecast CPO prices, as well as the delayed launch of MKH Avenue 2 (RM135m GDV) and Saville@Cheras (RM280m GDV). This led us to nudge down our SOP-derived TP to RM5.70 (from RM5.85 previously). Nevertheless, MKH remains a high-conviction BUY because it is at the inflection point of an aggressive growth trajectory. The strong, visible growth driven by the Plantation and Property segments could be a multi-year re-rating catalyst. We would accumulate MKH amid the current share price weakness for 51% upside potential.

Could be another Globetronics. Way cheaper but needs pay more dividends.

• Home-grown champion of automated vision inspection systems & equipment with global track record
• Aggressive products launch pipeline and stronger marketing team to drive 3-year EPS CAGR of 21%
• RM1.70 TP is pegged to 12x FY14 EPS

Fair value of RM1.70. Our TP is pegged to 12x FY14 EPS, at a premium to ViTrox’s historical forward mean PE of 9x because it is in the midst of an exciting growth phase, riding on the growing electronic manufacturing services industry. FY13 revenue is set to breach the RM100m mark for the first time since inception in 2000 – a remarkable success for the home-grown champion.

Best in class. We forecast ViTrox will register 3-year earnings CAGR of 21% over FY12-15F. We also like its net cash position (RM0.11/share), superior margins (>25%) and high ROE (>19%). ViTrox will also benefit from the progressive recognition of RM16.2m government grant (FY13-15F) and tax-exempt status for its innovative products.

Wildcard. The Agilent machines that have been serviced by ViTrox since Agilent exited the business in FY10 are nearing the end of their life-cycle. This is a huge opportunity for ViTrox to fill. Additionally, ViTrox’s machines are compatible with the Agilent systems and interfaces which the customers are accustomed to.

relax guys. operationally plantations is profitable for 4Q. Just unrealised forex loss. Same thing with IJM Plantations for this quarter. Solid results still.

Undervalued broker and developer. The next M&A Target after HDBS.


HwangDBS Vickers Research has reiterated a 'buy' for TA Enterprise (TAE) based on a revised Sum Of Parts (SOP) of RM1.00
per share.

The revised SOP now factors in a higher 1.0 Price/Book Value (P/BV) for its broking business and higher capital values for its property business, HwangDBS Vickers said in a statement.

"A major catalyst for TA Global, a subsidiary of TAE, will be an
establishment of a hospitality REIT which will have at least an asset size of RM2 billion based on our SOP.

"The unlocking of deep latent value of largely prime overseas assets where one new hotel even has Donald Trump as an operator will lift TA Global’s SOP and in turn TAE's," the research house said.

It owns 7 acres (2.8 ha.) of very valuable land in key growth areas in the Klang Valley as well as overseas in Canada.

Property development earnings, according to the research house, have picked up.

TAE is the only stand-alone broker left in Malaysia with a strong retail presence of 5.7 per cent market share (trading volume).

"Consolidation among brokers had been apparent with increased competition where valuation benchmarks have been set at between 1.1 to 1.9 times Book Value.

"In our view, the founding shareholders may warm up to a cash offer of at least one times P/BV or RM687 million (broking and credit and lending business)," HwangDBS Vickers said.

At 11.01am, TAE was unchanged at 56 sen with 1.094 million shares traded.-- Bernama

MMC is a great story. but it is hilarious to see so many short sighted, gullible and foolish people out there.

yes GTRONIC will give you at least 7% yield this year with 20% growth in earnings. No brainer.

Target price RM4.95.

MMC Corporation: Overlooked and underappreciated
• Overlooked and lagging large cap proxy to infrastructure and Iskandar
• Current share price implies land in Johor is free
• Strong investor interest in Gamuda and UEML to filter down to under-owned MMC
• Raising earnings and TP, High conviction BUY

Overlooked. The lack of large cap liquid infrastructure stocks apart from Gamuda and IJM makes MMC stand out as a strong proxy. The appetite for Malaysian infrastructure has picked up judging by the surge in Gamuda's share price, which is up 35% YTD vs 2% for laggard MMC. We have also received more queries from foreign investors but MMC is often overlooked and this is likely due to its lack of coverage and more complex businesses. This is not justified given its market cap of US$2.5bn, decent trading liquidity, orderbook of RM4bn and strong pipeline ahead. Infrastructure now forms 32% of our revised SOP valuation. The stock is also under-owed with foreign shareholding at 6.9% vs Gamuda’s 45%. With the elections behind us, the substantial overhang on Syed Mokthar-related stocks is now removed.

Iskandar assets feeling the buzz. Iskandar forms 60% of MMC’s SOP. While the direct beneficiary will be its holding of 4,556 acres of land in Senai and Tanjung Bin, its other assets such as ports and airport will continue to benefit from higher throughput and passenger arrivals (1Q13: +26%). Given the success of Vitol in Tanjung Bin, there are 3 other tank operators which will lease land for RM40 psf (including infrastructure) vs Vitol’s RM20 psf. On our estimates, every RM5psf increase in land price over our new base case of RM28-RM30psf will raise SOP by 5%.
Current share price implies Iskandar land is free; share price lagging. Based on the market values of its listed entities, the market is assigning a residual value of RM1.4bn for its construction, ports, water and Johor land bank. Putting this in perspective, even at a depressed land price of RM10psf (most recent transacted price is 25-30psf), the land is worth RM2bn.

Raising EPS and TP. We raise our FY14-FY15F earnings to impute in PDP fees of 6%. Our new SOP value of RM6.19 (TP of RM4.95 based on 20% discount) now factors in DCF value of the PDP, expectations of just RM1bn in new orders and higher land values. High conviction BUY.

Strong earnings growth, cheap valuations, high dividend yields.

http://www.theedgemalaysia.com/business-news/241114-globetronics-capitalising-on-all-its-right-moves.html

It was from an analyst report.

This is an underresearched gem which will eventually morph into a resourced based stock. Property land bank also benefits from presence from MRT stations giving them strong pricing power and assured take ups. Don't miss the forest from the trees.

Stock is down due to poorer than expected 2Q results after a strong showing in 1Q. This is not a concern and largely due to timing of property billings with plantation filtering through nicely. Can't be a better time to load up.

Broker calling a Buy today. Target RM1.60

Potential catalysts: a) Cabinet approval for MRT2 line expected in July (Sentul has been identified as a potential interchange for MRT 2 & MRT3 line); b) Launch of Fennel condos in Sentul East (ASP: RM600-700psf; built-up: 850-1300sf; 900 units), Shorefront Residences condos in Penang (ASP: RM1000-1200psf), and U-Thant condos next to Micasa Hotel (ASP: RM1200psf). Fennel should see strong interest given its strategic location & good connectivity (7km from KLCC; existing KTM & LRT stations), affordable price (RM500-900k/unit; suburban launches are already asking for RM700-800psf), freehold status, and well thought out masterplan. Shorefront should also do well given its prime location next to E&O Hotel and change in layout to more popular smaller units. As for Midfields (YTL Land is the project manager with 10% share of revenue), there are still 5 blocks of condos to be launched in 3 phases (secondary market transacting at RM450psf).

Maintain Buy and TP of RM1.60 based on 30% discount to RNAV of RM2.27. We like YTLL given: a) it is the biggest beneficiary of MRT interchanges; b) Flagship Sentul is among the last remaining large contiguous undeveloped parcels near KL city centre; and c) Strong track record.