Affin Daily Insight (LV) - 23 July 2014 - MAXIS / AUTO / BAT / WCT / DMR

Top Calls

Results Note � Maxis (ADD, maintain) - Sombre set of earnings, but worst could be over Maxis' 1H14 results were a little disappointing, accounting for 44% of our FY14 estimates. We have cut our earnings because of this, and brought down our 10-year DCF derived TP to RM6.92. Good news is mobile service revenue degradation has stopped implying that its transformational initiatives are taking place. We remain confident that this telco giant would once again capitalize on its network infrastructure strength, especially with a strong management team now in place. Maintain our ADD rating primarily for its yields of 5.9% for FY14

Other Calls

Sector Update � Auto & Autoparts (NEUTRAL, maintain) - 1H2014 TIV increased 6.3% yoy to 333,142 units

Results Note � British American Tobacco (REDUCE, maintain) - Smoky outlook lingers

Flash Note � WCT Holdings (BUY, maintain) - First major external contract in this year

Debt Market Report - Slightly softer tone, profit taking ahead of long Raya weekend, risk appetite still healthy

Morning News & Market Summary