Malaysia Daily, Maybank KE (2014-10-07)

Daily 07 October 2014 COMPANY UPDATE Top Glove: Maintain Hold Still unexciting  Shariah-compliant Expect flattish 4QFY8/14 results on higher gas cost. Earnings growth is muted given its cautious capacity expansion and cost pressure. Maintain HOLD and TP of MYR4.70 (15x CY15 PER). Click here for full report » CIMB Group Holdings: Maintain Hold Delay in Indonesian bill is a relief Delay in Indonesian bill buys time for Maybank and CIMB, maintaining shareholding status quo for several more years. Focus will now be on the merger announcement tomorrow, but this could be a non-event. HOLD maintained with an unchanged TP of MYR7.60 (CY14 P/BV of 1.7x) Click here for full report » REGIONAL COMPANY UPDATE Macau Gaming: Maintain Overweight Dismal Sep GGR, but odds still good Sep 14 Macau GGR fell 12% YoY. Oct 14 likely to be still challenging. That said, anti-graft drive may be winding down and mortgage rules have been substantially relaxed. Stay OVERWEIGHT. Sector trading at below five-year mean. Top Picks are Galaxy Entertainment Group and Sands China. Click here for full report » Technicals Volatility at lofty ends of the markets The FBM KLCI inched up 0.32 points WoW to close at 1,840.82, as minute local nibbling activities led the index up marginally in a lacklustre trading week. Speculative issues may remain range bound for this week. Trading idea is a Short-Term Buy on MMSV with upside target areas at MYR0.62 & MYR0.86. Stop loss is at MYR0.43. Click here for full report » Other Local News Infrastructure: Bombardier in KVMRT talks with local firms. They are in talks with local parties to form a consortium and bid for Line 2 and Line 3 of the KVMRT project. Bombardier hopes to form the consortium in time for tenders. Different divisions will need to be filled up. Hence, Bombardier is talking to more than five parties. (Source: Business Times) Automotive: Car trade body hopes for excise duty extension in Budget 2015. The Malaysian Automotive Association (MAA) is hopeful that the Government will extend the excise duty exemption period for locally-assembled hybrid and electric cars in Budget 2015. Under National Automotive Policy (NAP), announced in January, the excise duty exemption is only given to locally-assembled or completely-knocked-down (CKD) hybrid and electric cars. The exemption for hybrids will end on Dec 31, 2015 and for electric cars on Dec 31, 2017. (Source: The Star) MAS: Foreigner as CEO for Malaysia Airlines. This is for the first time in history that MAS will have a foreigner as CEO, who will be given the mandate to chart the restructuring of the company as well as see through its results over the next five years. It is learnt that Khazanah Nasional Bhd, has given its tacit agreement to the candidate, which is among three shortlisted. Apart from the CEO, MAS will also hire another five or six key personnel who are who are knowledgeable in specific areas of the industry to cut costs. (Source: The Star)     Key Indices Value YTD (%) Daily (%) KLCI 1,845.3 (1.2) (0.1) JCI 5,140.9 20.3 0.1 STI 3,264.1 3.1 (0.4) SET 1,587.4 22.2 0.1 HSI 22,933.0 (1.6) 0.0 KOSPI 1,991.5 (1.0) (1.4) TWSE 8,990.3 4.4 0.3 DJIA 16,804.7 1.4 (1.4) S&P 1,946.2 5.3 (1.3) FTSE 6,557.5 (2.8) (1.0) MYR/USD 3.3 (0.1) (0.2) CPO (1mth) 2,210.0 (15.9) (1.0) Crude Oil (1mth) 90.7 (7.8) (0.5) Gold 1,213.8 1.0 0.5 TOP STOCK PICKS Buy rated large caps Price Target Tenaga 12.32 14.00 Axiata 7.01 7.60 Sime Darby 9.18 10.20 Gamuda 4.80 5.30 UMW O&G 3.86 5.15 AFG 4.95 5.50 Perdana Petroleum 1.85 2.55 Hock Seng Lee 1.88 2.25