On The Platter
TASCO (FV RM2.48 – BUY) Company Update: All Still Intact
On Tuesday, we attended the briefing by TASCO as part of the
Investor Relations Day co-organized by Malaysia Investor Relations Association
and ZJ Advisory. The briefing reaffirmed
our view of TASCO as the top pick in our Logistics universe for its: (i)
healthy growth in its sea and air freight business, (ii) expanding 3rd Party
Logistics volume from its existing clients, and (iii) low PER, at 6x FY12 EPS
vs the industry average of 7x. We keep our BUY call, but upgrade our FV from
RM2.33 to RM2.48, pegging the stock at a slightly higher PER of 7x, which is in
line with the industry average PER, from 6.5x previously.
AUTOMOTIVE (NEUTRAL) Sector Update: Mar’12 TIV: Sluggish
Sales
TELECOMMUNICATION (NEUTRAL) Sector News Flash: All to Share
Content from 1 May
CENSOF (FV RM0.57 – BUY) Corporate News Flash: Second Haul
in a Week
PBBANK (FV RM14.40– NEUTRAL) 1QFY12 Results Review: Going at
a Slower Pace
KASIKONBANK (FV THB188.9
– BUY) 1QFY12 Results Review:
Solid Numbers All Round
SIAM COMMERCIAL BANK (FV THB157.8 – NEUTRAL) 1QFY12 Results Review: Sizzling
Growth
MAANSHAN IRON & STEEL (FV HKD2.37 – NEUTRAL) 1QFY12 Results Review: Puzzled by
Widening Losses
Market Review
Battle for 1,600. The FBM KLCI rallied to a high of 1602.34
pts but could not sustain its move above the 1,600-pt psychological level. At
the end of the day, the benchmark closed 2.67
pts higher at 1598.86. Today’s
news headlines include: IMF revises up Malaysia’s
GDP growth from 4.0% to 4.4% for 2012 and projects a 4.7% growth in 2013, Public
Bank reports a RM940.8m 1Q net profit and Century Software receives two letter of
awards from Malaysia’s Inland Revenue worth RM5.6m, Meanwhile, DRB-Hicom signs cooperation
agreement with TATA Motors to develop, promote and market TATA military vehicles
and Eversendai was appointed as subcontractor for the
National Museum of Qatar package 2 worth RM134m. The Dow closed 83 pts
lower but stayed above the 13,000-pt
level, while Europe also lost ground with the Dax losing 1.0% and the CAC 40 down
by 1.6%. Some downward pressure could be expected for the local market as long as
it fails to break above the 1,600 level.
MEDIA HIGHLIGHTS
Public Bank registers
record net profit
Public Bank posted another record net profit for its 1Q
ended Mar 2012, buoyed by strong loan growth, higher deposits and non-interest
income, and the application of new accounting policies The banking group’s net
profit grew 6.4% to RM940.8m for the quarter in review, from RM884.1m for the
corresponding period a year earlier. (Financial Daily) Please see accompanying
report
Century Software
receives IRB awards
Century Software SB has accepted two letters of award from
the Internal Revenue Board to carry out accounting system projects worth RM5.6m
The first project will commence from 1 Jan for three years and the second will commence
from the date of acceptance of the letter of award for a period of two years
and three months. (Financial Daily) Please see accompanying report
Study on new
Johor-Singapore rail, road links
The Malaysian and Singaporean governments will appoint a
foreign consultant by early next month to undertake a detailed study on the
proposed Rapid Transit System (RTS) linking Johor Baru and the island republic.
It is understood that the study, which will take six to 12 months to complete,
will determine the best options for the RTS development and project cost.
People familiar with the matter said several options were being considered by
both governments. They said the governments were mulling whether to build an
elevated rail and road link or underground tunnels between the two cities. (BT)
DefTech, Tata seal
defence cooperation
Defence Technologies SB (DefTech), a wholly-owned defence
arm of DRB-Hicom, yesterday signed a cooperation agreement with India’s Tata
Motors Ltd to develop, promote and market the latter’s military vehicles. The
cooperation agreement will enable both DefTech and Tata to promote the high
mobility 4x4 trucks with payloads ranging from 2.5 to five tonnes to the
Malaysian government. (Malaysian Reserve)
Eversendai gets
RM134m sub-contract for Qatar museum
Eversendai Corporation’s
subsidiary has secured a RM134m sub-contract for the second package of
the National Museum of Qatar. It said on Wednesday the subsidiary, Eversendai
Engineering Qatar W.L.L, was awarded the contract by the main contractor Hyundai Engineering & Construction Co.
Ltd. The scope of work includes design, fabrication and building of steel
structures. (StarBiz)
First Solar plant
shutdown sparks fears of bigger shakeup
US-based solar panel manufacturer First Solar Inc announced
on Tuesday the shutdown of its manufacturing plant in Frankfurt, Germany. In
addition, beginning May, the company plans to indefinitely shut down four more production
lines at its plant in Kulim, Kedah. According to the company, this is to
facilitate the restructuring of its operations due to deteriorating market
conditions in Europe. The company also hopes to cut costs and explore new
market opportunities. (Malaysian Reserve)
JCY likely to
maintain strong earnings in Q2
JCY International’s second-quarter earnings could be as
strong as its first-quarter figures. Southeast Asia's largest technology
company is expected to release its second-quarter earnings by the middle of
next month. "Our production output should be on target," said JCY
finance director, James Wong, in an interview with Business Times recently. He
added that the company has been doing well in the current quarter (second quarter),
subject to external factors such as fluctuations in the currency markets. (BT)
ECONOMIC
HIGHLIGHTS
India: Consumer-price
inflation accelerated to 9.47% in March
Indian consumer-price inflation accelerated in March as the
cost of egg, vegetables, fish and meat products rose, the government said. The
consumer-price index climbed 9.47% y-o-y, compared with an 8.83% advance in February,
the central statistics office said in a statement yesterday. The Reserve Bank
of India cut interest rates earlier this week for the first time since 2009 on
slowing growth even as it said upside risks to inflation were limiting room for
further easing. The country’s benchmark wholesale-price index rose 6.89% in
March, slower than the 6.95% pace in February. (Bloomberg)
China: Home prices
decline in more than half of cities
China’s home prices fell in a record 37 of 70 cities tracked
by the government in March as officials pledged to keep restrictions on
property purchases that have sapped buyer demand. The eastern city of Wenzhou
led declines with a 9% slump in values from a year earlier, while Beijing and
Shanghai recorded drops of 0.8%, according to data released by the statistics
bureau yesterday. Yesterday’s release underscores forecasts for China’s
economic growth to slow further this quarter after the rate reached the lowest
level in almost three years in the three months through March. (Bloomberg)
UK: Unemployment
unexpectedly falls as growth resumes
UK jobless claims rose less than economists forecast in
March and a broader measure of unemployment fell for the first time for almost
a year, signs that the labour market is stabilizing as the economy recovers.
Joblessbenefit claims rose by 3,600 from February to 1.61m, the Office for
National Statistics said yesterday. Unemployment as measured by International
Labour Organization methods fell to 8.3% in the quarter through February from a
16-year high of 8.4%. (Bloomberg)
US: Factories cool
for first time in four months
Production at US factories dropped in March for the first
time in four months as the industry cooled following the strongest surge in
three decades. Manufacturing, which
makes up about 75% of industrial output, decreased 0.2% last month as appliance
and furniture makers cut back, data from the Federal Reserve showed today in Washington.
The decline followed a revised 3.4% gain from December through February that
marked the biggest three-month jump since March 1984. (Bloomberg)
Source: OSK188
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