By CIMB Research

Add (from hold)

Target price: RM3.40

CIMB Research said Puncak Niaga Holdings Bhd remained undervalued, with a market capitalisation that is 29% below the RM1.6bil offer price for its water business.

But it reiterated an “add” rating on Puncak, stating that the Selangor government had a stronger conviction that it would ensure that the conditions precedent for the RM1.6bil sale and purchase agreement (SPA) with Puncak would be met and completed by the Oct 15 deadline, and that there would be no more delays.

“This news is positive and should put to rest additional concerns regarding how fast Puncak’s RM1.6bil water deal can be revived following the signing of the supplementary agreement between the Federal and the Selangor governments,” said CIMB.

The RM1.6bil combined valuation offered by the state government for Puncak’s 100% stake in Puncak Niaga (M) Sdn Bhd (PNSB) (water treatment concession) and 70% stake in Syabas (water distribution concession) remained unchanged and accepted by Puncak.

With the final stage of the state’s first water acquisition deal underway in the next one to two weeks, Puncak would be exiting its water business and focusing on its oil and gas, and construction outfits, said CIMB Research. “Our earnings-per-share forecasts are retained pending the completion of the deal,” it said.

Assuming that the SPA could be completed and finalised by end-October, CIMB Research said Puncak should be able to announce and distribute the special dividends in the fourth quarter of 2015 or first quarter of 2016, at least, and this offered investors a shopping 38% yield.

1.90

1.86

so whats next alpha?

alpha,game over or collect?

1.80

http://www.theedgemarkets.com/my/article/federal-court-throws-out-syabas-appeal-upholds-pua-not-liable-defamation
any impact?

Affin Hwang Investment Bank Bhd expects Puncak Niaga Holdings Bhd ( Valuation: 2.10, Fundamental: 1.70)'s earnings landscape to be challenging, due to weak outlook for its oil and gas (O&G) business.

In a note today, Affin Hwang's analyst Lim Tee Yang said it had cut its earnings per share (EPS) forecast for Puncak Niaga by 22% to 24% for financial years ending Dec 31, 2015 (FY15) to FY17. Affin Hwang said the downgrade took into account Puncak Niaga's weak O&G profit margin.

"Work order for its pipe laying barge has slowed down considerably, while rates are also under pressure," said Lim. To mitigate this, Lim said Puncak Niaga was rationalising its labour force to keep cost down.

The EPS forecast downgrade for Puncak Niaga by Affin Hwang, came with a lower target price of RM2.60 for Puncak Niaga shares. This compares with RM2.90 previously.

Affin Hwang also downgraded Puncak Niaga shares to "hold", from "buy". "The conclusion of (the) water deal between state and federal governments will finally pave the way for disposal of water assets," Lim said.

whats wrong?kossan n harta not dropping much also

Any news?why drop 3.8%?

why no research cover?

still drop 1sen while mkt up 30points

so when Air Selangor can get RM2B? feb next year?then why they said going to take over PNSB and SYABAS within 2weeks??

estimated how much redbull going to contribute to its bottomline?

Malaysia Mercedes Car sales:
JAN+FEB 865,MAR 986,APR 938,MAY 1152,JUN 1222-1H15 total 5163 35%increase yoy frm 3366 1H14
JULY 1050, whats next?

UOB Kay Hian Malaysia Research: The research house’s channel checks suggest that F&N’s Red Bull energy drinks’ sales have grown to RM250 million per annum with RM25 million-RM30 million pre-tax profit previously.

While it is too early to gauge the financial impact on Yee Lee Corp, this distributorship can hypothetically lift the company’s net profit to RM47 million, assuming a pre-tax profit of RM25 million from the Red Bull contract and 6% organic growth its existing business. “However, we note that the full impact from this contract can only be seen in 2017 as Yee Lee Corp might incur infrastructure costs during the initial stages,” observed UOB Kay Hian Research.

According to the research house, Yee Lee Corp is currently trading at 8.3x forward PE (price-to-earnings ratio), assuming a RM47 million forward net profit. The current share price provides 21%-46% upside, assuming a PE multiple of 10-12x.

when is the redbull business going to contribute to the comapany?

today no show?

Air Selangor has 2weeks to take over PNSB and Syabas.

The signatories hv 5 months beginning today to complete all CP including transfer the Syabas concession afreement as well as conclude concession agreements related to PNSB and Abbas.

So is 2weeks or 5months,anyone can explain?

gogo scicom,slowly picking up the price

http://www.thestar.com.my/News/Nation/2015/09/08/Selangor-water-deal-signed/

ckk2266 where did u get this article?

cch1975 how much is ur tp?

mocics no reply?rosmah mansur what is ur comment?

mocics, actually what is the main catalyst for this stock?with pe of near to 23x is no longer cheap for a tech company. is there any new project or development that can bring in huge progit for the company?frm the technical view, it seems likes it is under consolidate now and can fly any time soon

alpha trader, today very quiet, asdion still got show not?

alpha trader, why frontken is second last and myeg is last stock?how bout salcon that not yet move?

CIMB research already ungrade the tp and send to clients today.i3 not yet publish, i think 2mr early in the morning can jump in to get the share before the news go to public

CIMB raise owg tp to 3.02!Exciting 2016 when Sky
Avenue is launched and the theme park is ready. The newly-refurbished
Komtar will also be ready by end-2015. EPS growth of 46-47% in
FY16-17 is very attravtive.Grap the opportunity to buy now before too late, this stock is worth RM4 next year and at least RM2.80 before end of this month,
mark my words.

PETALING JAYA: My EG Services Bhd (MyEG), whose shares have jumped more than 30% year to date, may see competition in the business of online renewal of foreign workers’ permits.

Deputy Home Minister Datuk Dr Wan Junaidi Tuanku Jaafar said on Wednesday the Government was looking for an alternative to MyEG in that area.

The move was to prevent the monopoly by MyEG of online renewal of permits for foreign workers.

“The Government is looking at another alternative to MyEG under the Malaysian Administrative Modernisation and Management Planning Unit (Mampu) but it is not implemented yet.

“There is nothing wrong with MyEG, it is just not to have a monopoly,” he told reporters at Parliament House.

On Jan 5, the Immigration Department announced that its counters would be closed for renewal of foreign workers’ permits (PLKS) and that renewals could only be done online through MyEG.

This was followed by a storm of protests over the fee of RM38 imposed by MyEG per foreign worker on top of the RM125 processing fee to the Home Ministry, with some saying it contravened the Competition Act 2010.

That led to the department to reopen its counters, but complaints continued to be heard about MyEG’s system, which some employers perceived as inefficient.

MyEG closed down 11 sen to RM2.77 on Wednesday.

http://www.thestar.com.my/Business/Business-News/2015/04/08/MyEG-may-see-competition-in-online-renewal-of-foreign-workers-permits/?style=biz

KUALA LUMPUR: The hospital support services (HSS) contract recently clinched by Faber Group Bhd's unit, Faber Medi-Serve Sdn Bhd (FMS), is worth more than RM3bil.
Faber announced to Bursa Malaysia on Thursday that the value of the 10-year HSS agreement was RM307.32mil per annum.

FMS sealed this new concession for the provision of support services to government hospitals in Perak, Penang, Kedah and Perlis on March 11.
On the same date, Faber's 40%-owned associate companies, Sedafiat and One Medicare, also signed concession agreements with the Government to provide HSS in Sabah and Sarawak. The value of these contracts was not disclosed in Thursday’s announcement.

On April 1, FMS was appointed a contractor to provide the services for facilitating, during the early period of the East Malaysian concessions, the transition of the services provision from FMS to the associates.
Faber revealed on Thursday that the six-month services contracts with Sedafiat and One Medicare were worth RM77.68mil and RM68mil, respectively.

In 1996 FMS, Radicare and Pantai Medivest netted a 15-year HSS contract from the Government. That concession, which expired in October 2011, was reported to be worth RM7.5bil.
Faber Group, which is 70.7% owned by UEM Group Bhd, saw its shares rise 5 sen to RM3.35 at Thursday’s close.

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/2CAD9B9E1248C17348257E07003F4A71/$File/Announcement%20-%20SPA%20(ABLI%20and%20ABLII).pdf

quarter result definitely extreme good with surprise, high possible come with dividend or bonus issue.and don forget maybank not yet upgrade their tp(normally mbb upgrade same time with cimb).so high chances cimb and mbb going to revise upward their tp with conservative RM1.68. As alpha trader said, i see no reason why not whack as much as possible below 1.30. i will collect whatever price price below this and don care rumuors what big shark or small fish.i think the operator just wan to wash us out before the qr!

vegebotak,where u wan to run?run toward mitra toward Rm1.20 and RM1.35 is the correct path

Going to fly later,sky is the limit!!!!!

http://www.theedgemarkets.com/my/article/mitrajaya-lands-rm40188m-condominium-job-uem-sunrise-unit

2014 earnings increase 54% compare to previous year!
Dividend 2cent again!
Plus bonus issue 1:5 for first time to reward shareholders.
I see no reason the share not surge to the max 2mr!
Are you ready?ding dong ding dong~

2mr open 0.97 and try 1.00 resistance and shoot up to 1.10.

keep break new high!wohoo!1.50 is around the corner!ding tong ding tong~

This week scicom result annouce expected to be good?sell on good news or keep hold?

Rsc is a good start for the company, going forward there is more to come especially institutional investor will come in.I 2mr is a big wave coming. Enter early in the morning to swim same way with those big fish.don miss it.

i think tomorrow morning is last call to buy. Get as much as possible and wait for the show.

sapu saja,wont wrong,this stk fully undervalue, net cash rm300m, plus result so good with high div yield,where to find and i dono what is the reason dowan take more.

Any comment here after the result out?profit taking or continue move to another stage for the price?

Scicom still looking good.uptrend all the while. gogogo

today closing price not pretty from technical, 2mr another pushing down?

flying soon and break RM1 2mr