Malaysia Daily, Maybank KE (2014-08-19)

Daily 19 August 2014 RESULTS REVIEW Star Publications (Malaysia): Maintain Hold Comeback quarter  Shariah-compliant 2Q14 results were within expectations and made up for a poor 1Q14. Dividends surprised positively. Nonetheless, we leave our earnings and dividend estimates unchanged for now. Maintain HOLD and MYR2.50 TP. Even at our lower 15sen p.a. DPS estimate, yields are attractive at 5.8%. Click here for full report » COMPANY UPDATE Inari Amertron: Maintain Buy Growth momentum to sustain  Shariah-compliant Fibre-optics, Inari�s next growth catalyst, to be supported by capacity extension in the newly-acquired Batu Kawan land. 4QFY14 results, to be announced on 26 Aug, should be stronger QoQ but within expectations. Reiterate BUY with an unchanged MYR4.20 cum-rights TP (17x CY15 PER), offering 26% upside. Click here for full report » ECONOMICS Singapore Exports, July '14 Not a great start to 3Q 2014 NODX and NORX data for July 2014 were disappointing NODX fell for the third month in a row while NORX slipped for the second time in the past three months No change in our 2014 NODX forecast of another year of decline Click here for full report » Technicals Some minor profit taking The FBMKLCI fell 2.56 points to 1,861.75 yesterday, while the FBMEMAS and FBM100 also inched lower by 8.58 points and 14.96 points, respectively. We recommend a �Range Trading� stance for the index. Trading idea is a Short-Term Buy on PMBTECH with upside target areas at MYR1.95 & MYR2.45. Stop loss is at MYR1.44, Click here for full report » Other Local News O&G: Spain's Tecnicas Reunidas wins USD1.5b contract in Malaysia from Petronas. The 50-month contract, awarded by Petronas, is to engineer, supply and build part of the massive complex, which will include a refinery and integrated petrochemical plant. (Source: The Star) Auto: July vehicle sales up 2.9% on-month to 60,267 units. This was boosted by aggressive sales campaigns by industry players with the auto body expecting sales to be sustained in August. MAA said sales were expected to be maintained at the July level due to a longer working month and due to car companies' aggressive promotional campaign. (Source: The Star) Sime Darby: NBPOL may cost Sime Darby as much as GBP551.25m. Deal could be transacted at GBP6-7 a share, which is a "good offer", said sources. (Source: The Edge Financial Daily) Outside Malaysia U.S: Homebuilders confidence increases to seven-month high, showing the industry making headway after weakness earlier this year. The National Association of Home Builders/Wells Fargo sentiment measure climbed to 55 from 53 in July, the Washington-based group reported. Readings above 50 mean more respondents said conditions were good. (Source: Bloomberg) Ireland: Rating raised to A- by Fitch on growing economy. The rating was increased from BBB+ with a stable outlook, Fitch said in a statement. Ireland is recovering from the collapse of its real estate market after a decade-long housing boom, a crash that forced the country to take an international bailout. The country exited the rescue program in 2013 and its economy will grow by 3.5% this year, according to Dublin-based Davy, Ireland's largest securities firm. (Source: Bloomberg) China: New-home prices fell in July in almost all cities that the government tracks as tight mortgage lending deterred buyers even as local governments eased property curbs. Prices fell in 64 of the 70 cities last month from June, the National Bureau of Statistics said, the most since January 2011 when the government changed the way it compiles the data. Beijing prices fell 1% MoM from June, posting the first monthly decline since April 2012. (Source: Bloomberg) Thailand: Economy expanded more than estimated in 2Q 2014 as local demand recovered after a military coup ended months of political unrest. GDP rose 0.9% QiQ in the three months through June from the previous quarter, when it shrank a revised 1.9% QoQ, the National Economic & Social Development Board said. The economy expanded 0.4% YoY, compared to a survey estimate for no change. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,861.8 (0.3) (0.1) JCI 5,156.8 20.6 0.2 STI 3,312.8 4.6 (0.1) SET 1,542.4 18.8 (0.3) HSI 24,955.5 7.1 0.0 KOSPI 2,053.1 2.1 (0.5) TWSE 9,141.3 6.2 (0.7) DJIA 16,838.7 1.6 1.1 S&P 1,971.7 6.7 0.9 FTSE 6,741.3 (0.1) 0.8 MYR/USD 3.2 (3.6) 0.1 CPO (1mth) 2,099.0 (20.1) (3.1) Crude Oil (1mth) 96.4 (2.0) (1.0) Gold 1,298.4 8.1 (0.5) TOP STOCK PICKS Buy rated large caps Price Target Tenaga 12.30 14.00 Axiata 6.96 7.60 Sime Darby 9.51 10.30 Genting Msia 4.38 4.70 Gamuda 4.38 5.30 UMW O&G 4.05 5.15 AFG 4.98 5.50 Perdana Petroleum 1.85 2.55 Hock Seng Lee 1.97 2.25