Malaysia Daily, Maybank KE (2014-06-19)

Daily 19 June 2014 RESULTS REVIEW Glomac: Upgrade to Buy Value emerges; upgrade to BUY  Shariah-compliant Upgrade to BUY after recent share price weakness with new TP of MYR1.24 (+0.05sen) on unchanged 0.6x P/NNAV. FY4/14 core net profit of MYR93m (-9% YoY) was in line. Lowering FY15/16 earnings forecasts by -4%/-14% to factor in actual FY4/14 results and change in sales assumptions. Click here for full report » Astro Malaysia Holdings: Maintain Hold Challenging but still delivering 1QFY1/15 results within expectations. That said, net adds and Superpack take-up are slowing. Maintain HOLD and MYR3.37 DCF based TP. Click here for full report » COMPANY UPDATE YTL Power: Maintain Hold Withdrawing from 4A YTL Power announced it will not participate in 4A (a 1,000-1,400 MW gas fired plant) under the present arrangement. We noted previously that the project might not be significantly RNAV-accretive; we have not incorporated the project in our forecasts. Maintain HOLD with an unchanged TP of MYR1.66. Click here for full report » Eversendai Corp: Maintain Hold Pushing for more jobs  Shariah-compliant Secured 3 new jobs (total: MYR152m) in Qatar and India. Replenishment rate for its core structural steel business remains weak. Maintain HOLD and TP of MYR0.98 (10x FY14 PER). Click here for full report » Technicals Higher volume-based buying interest The FBMKLCI inched higher by 1.98 points to 1,876.58 yesterday, while the FBMEMAS and FBM100 rose 23.52 points and 22.73 points, respectively. In terms of market breadth, the gainer-to-loser ratio was 469-to-350, while 323 counters were unchanged. Trading idea is a is a Short-term Buy on MNRB with upside target areas at MYR5.07 & MYR5.43. Stop loss is at MYR4.16. Click here for full report » Other Local News Sunsuria: Aborts MYR10b property deal. It has scrapped its plan to buy MYR10b worth of property assets and 160ha of land linked to its executive chairman and major shareholder Datuk Ter Leong Yap. Decision to scrap will allow the company to have more time and flexibility to assess the options in relation to other potential purchases. (Source: Business Times) Maybank: Etiqa gets Singapore nod. Malayan Banking's unit Etiqa Insurance Pte Ltd has received approval from the Monetary Authority of Singapore to operate as direct insurer for life and non-life segments in Singapore. (Source: The Star) Tanjung Offshore: Reverse takeover talks ongoing. It says talks with several parties, including a unit of oil and gas (O&G) giant Bourbon SA, for a reverse takeover (RTO) of the company is still on-going. There is still no concrete result yet. (Source: Business Times) Outside Malaysia China: Li says to avoid hard landing as GBP-CNY trading begins. Chinese Premier Li Keqiang said that the nation will avoid a hard landing, while limiting the scale of any stimulus to support economic growth. "The Chinese government is adjusting its economic operations to ensure the minimum growth rate is 7.5%, the level to ensure job creation," Li said in a speech. Inflation won't exceed 3.5%, he added, without specifying a time period for the prediction. China will have "medium to high-level" growth in the long run and will rely on "smart and targeted regulation" rather than strong stimulus measures, Li said. (Source: Bloomberg) Thailand: Kept its key interest rate unchanged for a second straight meeting as the economy showed signs of a recovery after a military coup ended months of political unrest. The Bank of Thailand held its one-day bond repurchase rate at 2%, with monetary policy committee members voting unanimously in favor of the decision, it said. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,876.6 0.5 0.1 JCI 4,887.9 14.4 (0.4) STI 3,276.8 3.5 0.1 SET 1,451.4 11.8 (1.3) HSI 23,181.7 (0.5) (0.1) KOSPI 1,989.5 (1.1) (0.6) TWSE 9,279.9 7.8 0.4 DJIA 16,906.6 2.0 0.6 S&P 1,957.0 5.9 0.8 FTSE 6,778.6 0.4 0.2 MYR/USD 3.2 (1.3) 0.4 CPO (1mth) 2,484.0 (5.5) 1.6 Crude Oil (1mth) 106.0 7.7 (0.4) Gold 1,277.7 6.3 0.6 TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.88 14.00 Genting Msia 4.19 4.74 HLBK 13.88 16.20 AMMB Holdings 7.15 8.50 Bumi Armada 3.70 4.55 IJM Corp 6.63 7.20 MPHB Capital 2.00 2.42