On The Platter
CIMB (FV RM8.53 –
BUY) Corporate News Flash: Completing Its ASEAN Reach
CIMB has finally announced that its 99.99% subsidiary, CIMB
Bank has entered into a sales and purchase agreement to acquire a much
anticipated 59.98% stake in Bank of Commerce
(BOC) in Philippines from the San Miguel Corporation for a total cash consideration
of PHP12.2bn or RM881m which values the stake at 1.14x Dec 2011 P/BV. Overall
we are positive on the acquisition of BOC as we view this as
a perfect opportunity to enter a large and underpenetrated banking
market at a reasonable 1.14x P/BV and relatively undemanding absolute pricing
of RM881m, essentially implying a favourable longer-term risk-reward profile.
Maintain BUY at an unchanged FV of RM8.53 (2.3x P/BV, 16.7% ROE).
HARTA (FV RM9.39 –
BUY) FY12 Results Review: Hitting The Mark
JOHOTIN (FV RM1.70 –
BUY) Company Update: Growth Momentum Intact
SAPURAKENCANA (FV
RM2.88 – BUY) Corporate News Flash:
Clinches Murphy Fabrication Job
SOP (FV RM7.24 –
NEUTRAL) 1QFY12 Results Review: Not Fully Out of The Woods Yet
INDOSAT (FV IDR6000 –
BUY) 1QFY12 Results Review: A Clearer Line
TELKOM INDONESIA (FV
IDR8500 – NEUTRAL) Corporate News Flash:
Bids for Pacnet
Market Review
Regains some lost ground. The FBM KLCI put on 5.73 pts to
close at 1590.60 on the back of gains chalked up by Petronas Dagangan, Petronas
Gas, Genting, YTL and CIMB. Gainers edged out losers by 404 to 307. However,
with the weaker overnight performance of the Dow, more so with key European
indices falling by 1.8%–2.8%, local stocks should feel the heat today. Today’s
news headlines include: CIMB Group Holdings enters into an agreement to acquire
a 60% equity stake in Bank of Commerce in the Philippines for PHP12,203m,
Kencana Petroleum receives a Letter of Award from Murphy Sarawak Oil for the
fabrication of offshore topsides for RM460m-RM474m, Perisai Petroleum awards a
USD208m contract for the construction of a jack-up drilling rig and Sarawak Oil
Palms announces RM43.0m net profit for 1QFY12.
MEDIA HIGHLIGHTS
Najib declares windfall for palm oil planters as general
election looms PM Datuk Seri Mohd Najib Razak announced windfall one-off
payments to palm oil planters and their family yesterday, the latest in a
string of giveaways ahead of an upcoming general election. The Federal Land Development
Authority will distribute RM1.7bn to more than 112k members of its planters’
cooperative, as well as their wives and children. The government has already
raised civil servants’ salaries, announced plans for a national minimum wage,
and begun distributing RM500 cash handouts to the poor. (Malaysian Reserve)
CIMB Group buys BoC
stake in the Philippines for RM881m
CIMB Group Holdings will pay RM881m or RM13.13/share for a
59.98% stake in Bank of Commerce (BoC) in the Philippines and thus extends its
footprint further into the Asean banking sector. Its group CEO Datuk Seri Nazir
Razak said the purchase value of 1.14x price to book and at a premium of about
RM110m was reasonable but warned that the multiple could rise to 1.3x upon
alignment with CIMB’s accounting and provisional policies. (Malaysian Reserve)
Please see accompanying report
Kencana Petroleum
awarded RM474m Sarawak job
Kencana Petroleum’s wholly-owned subsidiary, Kencana HL SB,
has received a letter of award from Murphy Sarawak Oil Co Ltd for the
fabrication of offshore topsides. The job is estimated at between RM460m and RM474m.
It was given the award on 20 Apr and is expected to deliver the job from 1QFY13
to 2QFY13. (Malaysian Reserve) Please see accompanying report
Perisai Petroleum
buys USD208m rig from PPL Shipyard
Perisai Petroleum Teknologi has announced its entry into the
offshore drilling segment by ordering a USD208m (RM635m) rig from SembCorp
Marine Ltd subsidiary, PPL Shipyard, to construct a jack-up rig, with an option
for a second rig at a later date. The first Pacific Class 400 jack-up drilling
rig is expected to be completed and delivered by end-July 2014, while the
second unit of similar specification is set for delivery in 2Q15. (Financial Daily)
MMC to relist
Malakoff next year
MMC Corp is expected to relist its 51% owned unit Malakoff
Corp next year, a move which could involve an offer for sale by MMC of its
shares in Malakoff, besides a new share sale in the power generation
subsidiary. Group MD Datuk Hasni Harun said the planned relisting could see MMC
offering to sell at least a quarter of its 51% block in Malakoff. This could
mean MMC lowering its interest to 38.25%, thus reducing Malakoff to an
associate company. (Financial Daily)
ECONOMIC
HIGHLIGHTS
Indonesia: Worst rupiah start since 2005 pressures Indonesia
to undo easing Indonesia’s central bank will probably consider steps to curb
excess funds in the economy and extend a pause in interest-rate cuts as the
second-worst performing currency in Asia
highlights the threat from inflation. Bank Indonesia will keep the reference
rate at 5.75% tomorrow, according to all 21 economists surveyed by Bloomberg
News. The central bank has left its benchmark unchanged since an unexpected
reduction in February. (Bloomberg)
Australia: Trade
deficit widest since October 2009
Australia’s trade deficit widened in March to the biggest in
almost 2 1/2 years as a 5% rise in imports outpaced export growth in an economy
driven by the mining industry. Imports
outpaced exports by AUD1.587bn (USD1.6bn), from a revised AUD754m
deficit in February, the Bureau of Statistics said. The gap was the widest since
a AUD1.595bn shortfall in October 2009 and exceeded the AUD1.3bn median
estimate in a Bloomberg News survey of 20 economists. (Bloomberg)
Germany: Industrial
output rose three times more than forecast
German industrial output rose more than three times as much
as economists forecast in March, adding to signs Europe’s largest economy may
have avoided recession. Production
jumped 2.8% from February, when it dropped 0.3%, the Economy Ministry said.
February output was revised up from a 1.3% decline. Economists forecast a March
gain of 0.8%, the median of 38 estimates in a Bloomberg News survey shows.
In the year, production advanced 1.6%
when adjusted for working days. (Bloomberg)
US: Factories in US
grew less optimistic about sales, ISM says
Manufacturers in the US became less-optimistic about 2012
sales growth than at the end of last year,
while service companies grew more upbeat, according to a survey by the
Institute for Supply Management. Purchasing managers at US factories said they
anticipate sales will grow 4.5% this year, less than a 5.5% December
prediction, according to the Tempe, Arizona-based group’s semi-annual forecast
issued. By contrast, service providers estimated revenue will climb 4.8% this
year, up from the 3.1% forecast in December. (Bloomberg)
US: Job openings rise
to highest level since 2008
Employers in the US were seeking to fill more jobs in March
than at any time in almost four years, showing growing confidence in the US
economy. The number of open positions increased by 172,000 to 3.74m, the most since
July 2008, from a revised 3.57m the
prior month that was larger than previously estimated, the Labor Department
said. (Bloomberg)
Source: OSK188
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