On The Platter
AEONCR (FV RM9.98 –
BUY) FY12 Results Review: More Solid Earnings in Store
AEON Credit’s (ACSM) FY12 earnings beat consensus and our
full-year forecasts by 17.5% and 10.1% respectively. Revenue and net profit
surged 27.7% and 50.7% y-o-y on better
showing in all its business segments. Asset quality was largely preserved although
the CAR declined to 21.8% from 24.0% in the previous year – but still well above the required
16.0% - while NPLs dipped 14 bps to
1.80%. The company has proposed a 16.8
sen single tier final dividend, bringing the FY12 dividends to 30.0 sen. Maintain
BUY, with a higher fair value of RM9.98, pegged to 10x FY13 EPS vs 9x previously,
on ACSM’s consistent growth and bright prospects ahead.
HAIO (FV RM2.03 – NEUTRAL) Company Update: A Breath of Life From New Salt Product
KPJ (FV RM5.84 – BUY)
Corporate News Flash: Heading For Miri
Market Review
Investors stay sidelined. FBM KLCI eased
2.24 pts to 1,596.62 as investors turned cautious on regional markets’ losses
amid fresh concerns over the Eurozone debt crisis. Losers outpaced gainers 429
to 281, while 350 counters were unchanged.
Today’s headlines are Bank Negara governor Tan Sri Zeti Akhtar Aziz said the Malaysian economy is set for almost 5%
growth in 2012, the Felda co-op votes in favour of FGVH’s listing, sources said
Malaysia Airlines may need to re-engage with its employees before changing its business plan, Naza plans to produce big
bikes locally, Miti confirms the appointment
of Boston Consulting Group to study
the entire steel sector to
address increasing petitions among the players, and Bursa posts flat 1Q
earnings on lower revenue. Overnight, the DJIA
fell 68.65 pts, or 0.5%, to
12,964.10, as disappointing economic data and unease over Europe offset
the positive corporate results. We expect another uninspiring today for the
local bourse pending fresh leads.
MEDIA HIGHLIGHTS
KPF ‘yes’ to Felda
share transfer
Koperasi Permodalan Felda (KPF) voted overwhelmingly in
favour of a corporate restructuring that will pave the way for the listing of
Felda Global Ventures (FGVH). KPF holds a 51% stake in Felda Holdings, which controls
all of the domestic agriculture businesses and other plantation-related
business, while FGVH holds the remainder. KPF delegates yesterday voted in
favour of transferring its 51% interest in Felda Holdings to FGVH. Felda
Holdings will thus become a wholly-owned subsidiary of FGVH, which in turn will
be 51%-owned by KPF and 49% held by the government. Felda Holdings made
RM614.2m in profits in 2010 while FGVH made RM287.3m. (Financial Daily)
New HP guidelines hit
Proton
Proton recorded a 14% y-o-y and 10% q-o-q dip in car sales
in 1Q2012, attributing the decline to stricter Bank Negara (BNM) hire-purchase
(HP) guidelines introduced in January 2012. Perodua also indicated the BNM new guidelines
as the likely reason for its 11% drop in y-o-y sales. The new HP guidelines
have made it harder for car buyers to get their loan applications approved with
lower loan amounts. The entry-level segment customers are now faced with higher
loan rejections and will potentially move to lower-priced cars, such as used
cars or basic variants of A-segment models. (Malaysian Reserve)
Slower growth for
local adex
The local advertising expenditure (adex) growth in Malaysia
this year is expected to moderate slightly by 2% to reach an estimated RM12bn.
Last year’s growth was 12%. Cautious market sentiment and growing focus on social
media are said to be the main causes for the slower growth, said Media
Specialist Association president Ranganathan Somanathan. The area growing the
fastest are digital and pay-TV ads. Ranganathan said more marketers today are
starting to explore the earned media space, in which they have to earn their
audience, as opposed to the paid media space where they pay to engage
audiences. (Malaysian Reserve)
Ta Ann proposes bonus
issue
Ta Ann has proposed to undertake a 1-for-5 bonus issue of up
to 61.79m shares. The proposed bonus issue would be implemented by capitalizing
up to RM61.79m from the company’s retained earnings reserve. The bonus issue is
expected to be completed in 2Q this year. (Financial Daily)
ECONOMIC
HIGHLIGHTS
Philippines: Halts interest-rate cuts as growth outlook
gains
The Philippines kept interest rates unchanged, halting after
two consecutive cuts as a recovery in exports lessened the need for policy
makers to add stimulus to the economy. Bangko Sentral ng Pilipinas held the
rate it pays lenders for overnight deposits
at 4%, according to a statement yesterday. Asian central banks are juggling
the need to boost economies hurt by Europe’s debt crisis and slowing Chinese
growth with increasing pressure to contain inflation fanned by elevated oil
prices. (Bloomberg)
Japan: Fastest export
growth in a year boosts outlook
Japan reported the fastest export growth in a year and a
smaller-than-expected trade deficit, aiding prospects of a sustained recovery
in the world’s third- biggest economy. Boosted by car exports to the US,
outbound shipments rose 5.9% in March from a year earlier. Comparisons are
distorted by the earthquake in March 2011. The results support the
International Monetary Fund’s estimate earlier this week that Japan’s economy may
expand as much as 2% this year, boosted by reconstruction spending. (Bloomberg)
India: Trade deficit
surged to record last year, pressuring rupee
India’s trade deficit widened 56% in the fiscal year through
March to a record USD184.9bn, adding pressure on the rupee, government data
showed. Merchandise shipments climbed 21
percent to USD303.7bn in the 12-month period, Rahul Khullar, the top
bureaucrat in the commerce ministry said yesterday. Imports advanced 32.1% to
USD488.6bn. The trade gap in 2010- 2011 was USD118.7bn. The shortfall in
India’s current account, the broadest measure of trade, was USD19.6bn in the
three months through December, prompting the central bank to say it’s
unsustainable. (Bloomberg)
Global: Lagarde Gets
USD320bn to boost IMF coffers, expects more
International Monetary Fund Managing Director Christine
Lagarde said she expects more contributions after landing pledges of about
USD320bn in her campaign for bigger reserves to combat threats to global
growth.“I look at this pot of money as an umbrella,” Lagarde said on Bloomberg
Television yesterday. “There are clouds on the horizon.” Japan, Denmark and
Switzerland are among the countries to rally this week to Lagarde’s call for a
bigger lending capacity beyond the current USD380bn to shield the world economy
against any deepening of Europe’s debt turmoil. (Bloomberg)
EU: Italian, Spanish
bonds fall on concern debt crisis Is worse
Italian and Spanish bonds led declines among Europe’s
higher-yielding government securities amid concern the regional debt crisis is
worsening. Italy’s 10-year yields
climbed for a second day after a government report showed industrial orders
fell more than economists forecast and the Finance Ministry said debt-servicing
costs will increase. French bonds dropped after Citigroup Inc. said it expects
the nation’s credit rating to be cut over the next two to three years. German
bunds advanced as investors sought the safest assets. Spain and France both
raised the amounts they targeted at debt auctions today. (Bloomberg)
US: Jobless claims
signal growth may moderate
More Americans than forecast filed claims for jobless
benefits and sales of previously owned
homes unexpectedly dropped, indicating the almost three-year-old economic
expansion may be moderating. Jobless claims
fell by 2,000 to 386,000 in the week ended 14 April from a revised 388,000 the
prior period, Labor Department figures showed yesterday in Washington.
(Bloomberg)
US: Consumer
confidence rises to match four-year high
Household confidence improved last week to match the highest
level in four years as more Americans said their finances were in better shape.
The Bloomberg Consumer Comfort Index was minus 31.4 in the period ended 15 April,
compared with minus 32.8 over the previous seven days. The reading equaled that
from two weeks earlier as the best since March 2008. Nonetheless, the monthly
expectations measure fell from a one-year high, showing concern remains that
too many Americans are still unemployed. (Bloomberg)
US: Previously owned home sales unexpectedly fell
in March
Sales of previously owned US homes in March unexpectedly
fell for the third time in the last four months, showing an uneven recovery in
the housing market. Purchases dropped
2.6% to a 4.48m annual rate from 4.6m in February, the National Association of
Realtors reported yesterday. Residential real estate remains the economy’s soft
spot, challenged by stricter lending standards, lower home values and the
threat of more foreclosures. An improved labor market and mortgage rates near
historic lows have yet to stoke bigger
gains in demand. (Bloomberg)
Source: OSK188
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