Affin Daily Insight (LV) - 26 March 2014 - GAM / GLOVES / INARI / DMR

Company Update � Gamuda (BUY, maintain) - Encore We continue to expect the MMC-Gamuda JV to win the underground works and Project Development Partner contracts for Line 2 due to its strong competitive position. In property, we believe the Malaysian market is heading for a cyclical slowdown but expect Gamuda, mainly a developer of large townships, to weather the slowdown well. A slowdown leading to more moderate land prices might work in its favour, as it still intends to augment its property land bank. From the various press reports, we understand that the offer for SPLASH is unlikely to be less than RM1,834.6, and as Gamuda is also agreeable to an arbitrated valuation based on internationally accepted methodologies, the offer could be higher. Furthermore, Gamuda Water is likely to continue to be the O&M provider should the government invoke Section 114 of WSIA to forcibly take over the four concessionaires in Selangor. We continue to like Gamuda for its good order book visibility, bulging property GDV and income as well as steady concession profits and potential monetisation of its concession assets. Maintain BUY.

Other Calls

Sector Update � Gloves (OVERWEIGHT, maintain) - Oversupply not yet an issue

Flash Note � Inari Amertron (BUY, maintain) - ISK receives MIDA grant

Debt Market Research - Mix day waiting for new 7.5y MGS auction

Morning News & Market Summary

For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.

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