Malaysia Daily, Maybank KE (2014-03-31)

Daily	31 March 2014
COMPANY UPDATE Star Publications (Malaysia): Maintain Buy Watch this e-space  Shariah-compliant Launched e-paper collaboration with regional English dailies; enjoys 60% of e-paper adex it initiates at negligible cost. This positively sets the backdrop for adex expansion given the enhanced regional presence. Maintain BUY and MYR2.55 DCF based TP. Click here for full report » Technicals Post window dressing profit-taking The FBM KLCI rose 30.25 points WoW as persistent 1Q14 window dressing local buying emerged last week. With the local buying that emerged recently at 1,802, we advise clients to buy at the support areas of 1,802 to 1,850. The resistance levels of 1,852 and 1,882 may see profit taking activities. Trading idea is a Short-Term Buy on KFIMA with upside target areas at MYR2.46 & 2.64. Stop loss is at MYR2.08. Click here for full report » Other Local News CMS: Eyes a piece of the state's telecom infrastructure. Cahya Mata Sarawak Bhd (CMS) which has its fingers in almost all key economic areas of the state, is now looking at a piece of action in the telecommunications segment by taking over state-controlled Sacofa Sdn Bhd which is an infrastructure and multimedia service provider in the telecom sector. It is learnt that Sacofa was worth at least MYR200m and based on CMS� cash pile of MYR613.7m as at end-2013, funding would not be an issue. According to industry sources, CMS could be eyeing Sacofa for its track record in building telecom towers and fibre-optic network in the Land of the Hornbill. Sacofa�s website showed that it had completed 611 towers as at Jan 31, 2013. (Source: The Star) Mah Sing: Eyes bigger affordable housing stake. Mah Sing Group Bhd�s landbanking strategy of locking in large tracts of township land is sharpening the developer�s competitive edge to carve a bigger market share in the affordable housing sector. The company has a remaining landbank of 2,818 acres worth a gross development value (GDV) of MYR26.8b. It is targeting to improve sales by 20% from the 2013 level of MY3b. Key projects by Mah Sing this year included The Meridin@Medini in Iskandar Malaysia, Johor, an 8.19-acre integrated development comprising the Meridin Linx SoVo, Meridin Exchange Corporate Towers, Meridin Walk Lifestyle Retail and Office Tower and a Wellness Residential Enclave, with a total GDV of MYR1.1b. (Source: The Star) Property: Medini to continue enjoying 10-year extension for special tax holidays and other packages for investments. Medini in Nusajaya will continue to enjoy special tax holidays and other incentive packages currently reserved for investments in the area for another 10 years after its privileges expire on Dec 31, 2015. Covering 902.44ha, Medini was conceptualised in 2007 to cater to property development projects which enjoy, among others, zero restrictions on foreign ownership, a MYR1m threshold for foreign property buyers and the real property gains tax (RPGT). Medini is sub-divided into three development clusters � the financial district, Medini Central, and lifestyle and leisure � with each developed by different developers. (Source: The Star) IPO: Shapadu plans MYR300m O&G IPO. Shapadu Corp Sdn Bhd has planned for an IPO for its O&G business, aiming to raise up to MYR300m in fresh proceeds. Shapadu Corp�s interest in the O&G business is held under four wholly-owned units � Shapadu Energy & Engineering Sdn Bhd, Shapadu Energy Services Sdn Bhd, Labuan-based Shapadu Marine Pte Ltd and Shapadu Marine Shn Bhd. For the purpose of listing, the four subsidiaries will be demerged from Shapadu Corp and transferred to a special purpose vehicle. As a part of the IPO plan, the group is pursuing a collaborative agreement with a third party for a major investment into NewCo. Shapadu Energy & Engineering is currently bidding for O&G contracts worth MYR3b. (Source: The Edge Financial Daily) Outside Malaysia U.S: Consumer spending picks up as incomes rise. Household purchases, which account for almost 70 percent of the economy, rose 0.3% MoM after a 0.2% MoM gain in January that was weaker than previously estimated. Incomes also advanced 0.3% MoM. (Source: Bloomberg) U.S: Michigan sentiment index fell to a four-month low in March, a sign U.S. households will be slow to increase their spending. The Thomson Reuters/University of Michigan final index of sentiment fell to 80 from 81.6 in February. Americans grew more pessimistic about the outlook for the economy as higher home-heating bills and gasoline prices strained budgets. (Source: Bloomberg) E.U: Euro-Area economic confidence increases more than expected. An index of executive and consumer sentiment rose to 102.4 from 101.2 in February, the European Commission in Brussels said. That beat the median estimate in a Bloomberg News survey of 31 economists and is the highest reading since July 2011. ECB President Mario Draghi said on March 25 that the Frankfurt-based central bank�s accommodative monetary policy should be increasingly felt throughout the euro-zone economy as disruptions in the financial system wane. The Governing Council will keep its benchmark interest rate at a record low of 0.25%. (Source: Bloomberg) Vietnam: 1Q 2014 GDP growth slows as lending hobbled. Vietnam�s growth slowed in the first quarter as the government failed to spur lending to businesses as banks struggled with bad debt. Gross domestic product rose 4.96% YoY in the first three months, the General Statistics Office said. That compares with a previously reported 6.04% YoY pace in 4Q 2013. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,850.7 (0.9) 0.2 JCI 4,768.3 11.6 1.0 STI 3,172.2 0.1 0.3 SET 1,368.9 5.4 1.0 HSI 22,065.5 (5.3) 1.1 KOSPI 1,981.0 (1.5) 0.2 TWSE 8,774.6 1.9 (0.1) DJIA 16,323.1 (1.5) 0.4 S&P 1,857.6 0.5 0.5 FTSE 6,615.6 (2.0) 0.4 MYR/USD 3.3 (0.4) (0.8) CPO (1mth) 2,735.0 4.1 0.1 Crude Oil (1mth) 101.7 3.3 0.4 Gold 1,296.2 7.9 0.2 TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.98 14.00 Genting Msia 4.20 4.74 HLBK 14.20 16.40 AMMB Holdings 7.18 8.50 Bumi Armada 3.91 5.00 IJM Corp 6.14 6.75 Time dotCom 3.90 4.40 MPHB Capital 1.82 2.42 Cahya Mata Swak 9.77 10.50