Malaysia Daily, Maybank KE (2014-04-24)

Daily 24 April 2014 COMPANY UPDATE Alam Maritim: Maintain Buy Enter new shareholders  Shariah-compliant Hong Leong Company (Malaysia) and Caprice Capital emerge as new shareholders with aggregate 13% stake. Proceeds will be timely for its fleet expansion program. Reiterate BUY but MYR1.90 TP (15x 2015 PER) is under review. Click here for full report » Barakah Offshore Petroleum: Maintain Buy Gets Pengerang�s pipeline job  Shariah-compliant Will contribute about MYR13m net profit, based on its 50% stake. Raising our FY14-16 net profit forecasts by 1-4% with majority of works to be recognised in FY15. Maintain BUY with a higher MYR1.90 TP (from MYR1.85), pegged to unchanged 14x FY15 FD PER. Click here for full report » Gas Malaysia: Maintain Hold An incremental positive?  Shariah-compliant GMB's unit cost of regulated gas has been raised as part of the tariff hike, but the scheduled cut in quota appears to have been deferred. This implies a lower blended cost in 2014, and thus a higher volume threshold for spread preservation. Maintain HOLD with a higher TP of MYR3.80 (+30 sen). Click here for full report » Technicals Inching up to 1,870 & 1,882 The FBMKLCI inched higher by 0.93 points to close at 1,867.35 yesterday, while the FBMEMAS and FBM100 also closed higher by 1.17 points and 5.23 points, respectively. Trading idea is a Short-Term Buy on MUDA with upside target areas at MYR2.03 & MYR2.31. Stop Loss is at MYR1.69. Click here for full report » Other Local News Property: Second phase of Battersea Power Station redevelopment project to cost more than twice that of phase one. Tagged at an average price of MYR12,627 per sq ft, this is more than double its phase one price of MYR6,039 per sq ft. It is also 176% higher than the average price of MYR4,567 per sq ft for newbuilds in the Nine Elms area, according to property consultancy Kinleigh Folkard & Hayward. Phase two comprising 254 units, with an approximate gross development value of MYR8.78b, is to be launched in London next Thursday. (Source: The Star) Automotive: Proton eyes China production. Proton Holdings Bhd is looking at manufacturing cars in China, riding on the success and future growth of the Lotus marque in the region, says former Prime Minister Tun Dr Mahathir Mohamad. The company is also looking at partnerships in China to start producing the cars soon. (Source: Business Times) Media Prima: Aims to maintain growth resiliency for FY14. It will continue to offer comprehensive, customized, integrated solutions to clients which appeal to end-users and in the short to medium term, will continue to capitalize on advertisement revenue from vernacular markets which is still growing. (Source: Business Times) Outside Malaysia U.S: Housing rebound losing steam as prices rise. Sales dropped a surprising 14.5% to a 384,000 annualized pace, lower than any forecast of economists surveyed by Bloomberg and the weakest since July, Commerce Department data showed. Three of the four regions saw setbacks, with demand in the West slumping to the lowest level in more than two years. (Source: Bloomberg) E.U: Euro Area factory surveys rise as price weakness persists. A composite index based on a survey of purchasing managers in both industries rose to 54 in April from 53.1 in March. That exceeded the median estimate of 53.0 and was the highest reading in almost three years. A reading above 50 indicates expansion. (Source: Bloomberg) Germany: Manufacturing and services strengthened, adding to signs that the euro area's largest economy is underpinning the region's recovery. A factory index based on a survey of purchasing managers rose to 54.2 from 53.7 in March, Markit Economics said. A separate services gauge jumped to 55 from 53, also exceeding forecasts. (Source: Bloomberg) China: Manufacturing gauge signals economic weakness persists. China's economy has yet to respond to policy makers' stimulus efforts, an April manufacturing gauge indicated, helping send the yuan to a 16-month low. The preliminary Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics was 48.3 in April. The reading rose from March's final figure of 48 while remaining below the expansion-contraction dividing line of 50. (Source: Bloomberg) S. Korea: Economy grows more than forecast as exports climb. Gross domestic product grew 0.9% QoQ in January-March period from the previous quarter, the Bank of Korea said. From a year earlier, GDP increased 3.9% YoY. (Source: Bloomberg) Thailand: Central bank kept its key interest rate unchanged, pausing after a cut last month as the central bank assessed the impact of the reduction and a political deadlock on the economy. The Bank of Thailand held its one-day bond repurchase rate at 2%, with monetary policy committee members voting six-to-one in favor of the decision, it said. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,867.4 0.0 0.0 JCI 4,893.1 14.5 (0.1) STI 3,258.0 2.9 (0.6) SET 1,423.4 9.6 0.6 HSI 22,509.6 (3.4) (1.0) KOSPI 2,000.4 (0.5) (0.2) TWSE 8,956.9 4.0 (0.2) DJIA 16,501.7 (0.5) (0.1) S&P 1,875.4 1.5 (0.2) FTSE 6,674.7 (1.1) (0.1) MYR/USD 3.3 (0.3) 0.0 CPO (1mth) 2,698.0 2.7 (1.2) Crude Oil (1mth) 101.4 3.1 (0.7) Gold 1,287.2 7.1 (0.3) TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.94 14.00 Genting Msia 4.21 4.74 HLBK 14.02 16.40 AMMB Holdings 7.23 8.50 Bumi Armada 4.00 5.00 IJM Corp 6.32 6.75 MPHB Capital 1.99 2.42