Malaysia Daily, Maybank KE (2014-09-22)

Daily 22 September 2014 RESULTS REVIEW Astro Malaysia: Maintain Hold Mixed reception 2QFY1/15 results within expectations. Dividends pleasantly outperformed again, however. Trim net profit estimates by 1-5% but raise FY1/15-16 DPR assumption from 75% to 100%, FY1/17 from 75% to 80%. Maintain HOLD with a slightly reduced DCF-based TP of MYR3.30 (-2%). Click here for full report » Berjaya Sports Toto: Maintain Hold Still unlucky in 1QFY1/15 Results are below expectations. Dividends are in-line, however. Maintain HOLD and MYR3.95 DCF-based TP. Click here for full report » COMPANY UPDATE Sunway: Maintain Hold Construction arm returns to Bursa  Shariah-compliant Positive on the latest corporate exercise involving the listing of its construction arm, unlocking values. Shareholders will be rewarded in the form of a distribution-in-specie and special cash dividend. Maintain earnings forecasts, HOLD rating and MYR3.05 TP (on 0.59x P/RNAV) for now; stock could re-rate by up to 30sen. Click here for full report » SECTOR UPDATE MY Automotive: Maintain Overweight Hari Raya hangover in August August's TIV fell to 51.1k units (-15% MoM) post Hari Raya. Our 2014 TIV forecast of 675k units (+3% YoY) is unchanged. Maintain OVERWEIGHT. MBM is our new top sector BUY. Click here for full report » Technicals Index held 1,836. Remains shaky. The FBM KLCI fell 6.15 points WoW to close at 1,849.49, as persistent selling activities led the index down last Monday. Price recovery from Wednesday to Friday failed to lift the index to a positive close. We advise clients to sell at the resistance areas of 1,849 to 1,896. Trading idea is a Take Profit call on FGV with downside target areas at MYR2.75 & MYR2.20. Click here for full report » Other Local News Banking: Affin Hwang Capital begins operations. The merger of Affin Investment Bank and HwangDBS Investment Bank has completed and the official commencement of operations for the newly formed Affin Hwang Capital begins today. Affin Hwang Capital, which is based in KL and Penang, had a total workforce of 1,900 including remisiers across Malaysia, the company said in a statement. The business serves over 20,000 individuals, corporate and institutional clients, and manages about MYR30b in assets. (Source: The Star) Industrials: Bina Puri receives offers for its first shopping mall. Bina Puri Holdings Bhd has received three offers as high as MYR210m for its maiden shopping mall project, The Main Place in Subang Jaya. However, group executive director Matthew Tee was quick to point out that the company preferred not to sell the mall, or at least not yet. The mall, which was open in March this year, has 130 retail lots, of which 90% are already rented out. Its total leasable area is 240,000 sq ft across the 3�-floor mall. Tee expects the company to turn in about MYR20m from the mall's rental per annum in its financial year ended Dec 31, 2015. (Source: The Star) Outside Malaysia U.S: Leading economic indicators increased 0.2% in August as stronger job growth and a pickup in consumer confidence gave a lift to the world's largest economy. The Conference Board�s index, a gauge of the outlook for the next three to six months, increased 0.2% in August after a revised 1.1% advance the prior month that was bigger than initially reported, the New York-based group said. (Source: Bloomberg) Russia: Pledges state funds to business as sanctions limit growth. Prime Minister Dmitry Medvedev met with business leaders to discuss state aid to cope with the strain as Russia's economic slowdown is exacerbated by the sanctions, Economy Minister Alexei Ulyukayev said at an investment forum in the Black Sea city of Sochi, site of the Winter Olympics. The government is trying to revive its USD 2tr economy, growing at its slowest since a contraction in 2009 as U.S. and European Union sanctions compound cooling consumption and falling oil prices. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,849.5 (0.9) 0.2 JCI 5,227.6 22.3 0.4 STI 3,305.1 4.3 0.2 SET 1,584.9 22.0 0.0 HSI 24,306.2 4.3 0.6 KOSPI 2,053.8 2.1 0.3 TWSE 9,240.5 7.3 0.0 DJIA 17,279.7 4.2 0.1 S&P 2,010.4 8.8 (0.0) FTSE 6,837.9 1.3 0.3 MYR/USD 3.2 (1.3) 0.2 CPO (1mth) 2,136.0 (18.7) (1.6) Crude Oil (1mth) 92.4 (6.1) (0.7) Gold 1,215.7 1.2 (0.8) TOP STOCK PICKS Buy rated large caps Price Target Tenaga 12.38 14.00 Axiata 6.97 7.60 Sime Darby 9.11 10.20 Gamuda 4.81 5.30 UMW O&G 3.90 5.15 AFG 5.06 5.50 Perdana Petroleum 1.80 2.55 Hock Seng Lee 1.84 2.25