Malaysia Daily, Maybank KE (2014-07-09)

Daily 09 July 2014 INITIATING COVERAGE Inari Amertron: Buy (New) Connecting dots for greater success  Shariah-compliant A growth stock with projected 3-year earnings CAGR of 61%. Provides exposure to the fast-growing smart devices and fibre-optics markets via its partnership with Avago. Initiate with BUY; MYR4.20 cum-rights TP (17x CY15 PER) offers 30% upside and backed by 2+% net yield in FY15. Click here for full report » COMPANY UPDATE Genting Malaysia: Maintain Buy Upstate New York one juicy apple GENM stands a good chance of winning a commercial casino license in Upstate New York, in our view. We estimate that every 5% share of the addressable market will accrete 26% to our FY16 EBITDA, +16% to our TP. If GENM wins, total upside surges from 12% to 26%. Maintain BUY on unchanged MYR4.70 SOP-based TP (for now). Click here for full report » Technicals Profit taking just below the 1,900 mark The FBMKLCI inched higher by 0.15 points to 1,892.65 yesterday, while the FBMEMAS and FBM100 rose 2.28 points and 1.77 points, respectively. We recommend a �Buy on Dips� stance for the index. Trading idea is a Short-Term Buy on SEACERA with upside target areas at MYR1.26 & MYR1.42. Stop loss is at MYR0.97. Click here for full report » Other Local News Auto: APs to stay for now. The approved permits (APs) to import cars will most likely not be abolished in the near future. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the APs have brought in more than MYR1.5b in revenue to the government in the last three years, making it difficult to abolish them. On whether the APs will be abolished eventually, Mustapa said the government is studying various options. (Source: Business Times) Felda: Aims to list life sciences unit on Nasdaq by March. Federal Land Development Authority of Malaysia (Felda) is looking to tap growing demand for botanical drugs and treatments with a planned USD300m (MYR954m) listing of Felda Wellness on the Nasdaq exchange by March. Felda Wellness has been working with a New York-based investment bank with expertise in raising funds for life sciences companies in the US. Bankers to advise on the deal will be chosen in September after the listing is approved by the Felda board. The firm will launch its health products in Malaysia next month, followed by US, South Korea and Australia in January next year and Indonesia in March. (Source: Business Times) Borneo Aqua Harvest: Extends pact with Southsea. The firm announced yesterday that its agreement with Southsea Gold Sdn Bhd for the prospecting, exploration, extraction and commercialization of mining business at Bukit Mantri in Tawau, Sabah, has been extended for about 12 months, starting from June 21. Borneo Aqua Harvest said the extension of time is to enable the company to continue with its due process of determining whether the mining site contains commercially justifiable mineral resources for commercial mining. (Source: Business Times) Outside Malaysia U.S: Job openings increased to an almost seven-year high, a sign the U.S labor market will help boost economic growth in the second half of this year. The number of positions waiting to be filled climbed by 171,000 to 4.64 million, the most since June 2007, a report from the Labor Department showed. The number of unemployed job seekers per opening fell to the lowest level in six years. (Source: Bloomberg) U.S: Consumer credit jumps in May as auto lending strengthens. The USD 19.6b increase in credit followed a revised USD 26.1b gain in April, Federal Reserve figures showed. Non-revolving lending, which includes auto and school loans, advanced by the most in a year. Stronger employment and stock-market gains this year are giving consumers the confidence to take on more debt. The figures coincide with robust auto sales and greater demand for furniture and appliances tied to the real-estate recovery. (Source: Bloomberg) Japan: Posted a fourth straight current-account surplus, as income from overseas investments masks the failure of the yen's slide to boost exports. The excess in the widest measure of trade was JPY 522.8b (USD 5.1b) in May, the finance ministry reported. Exports rose 2% YoY. (Source: Bloomberg) New Zealand: Outlook raised to positive by Fitch; currency gains. Fitch affirmed its long-term foreign currency rating at AA, two grades below the top score. "Fiscal consolidation is strengthening the resilience of New Zealand's sovereign credit profile," Fitch said in a statement. �The authorities have a credible plan to lift the fiscal surplus in the years ahead." (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,892.7 1.4 0.0 JCI 5,024.7 17.6 0.7 STI 3,283.3 3.7 (0.3) SET 1,507.6 16.1 0.3 HSI 23,541.4 1.0 0.0 KOSPI 2,006.7 (0.2) 0.1 TWSE 9,531.0 10.7 0.1 DJIA 16,906.6 2.0 (0.7) S&P 1,963.7 6.2 (0.7) FTSE 6,738.5 (0.2) (1.2) MYR/USD 3.2 (3.2) (0.6) CPO (1mth) 2,453.0 (6.7) (0.5) Crude Oil (1mth) 103.4 5.1 (0.1) Gold 1,319.2 9.8 (0.1) TOP STOCK PICKS Buy rated large caps Price Target Tenaga 12.48 14.00 Genting Msia 4.20 4.70 HLBK 13.94 16.20 AMMB Holdings 7.16 8.50 Bumi Armada 3.28 4.55 IJM Corp 6.70 7.20 MPHB Capital 2.31 2.42