Malaysia Daily, Maybank KE (2015-03-02)

Daily 02 March 2015 RESULTS REVIEW CIMB Group Holdings: Maintain Hold Unexciting near-term prospects  Shariah-compliant FY14 core net profit of MYR3.2b (-25% YoY) below expectations on weaker NOII and surge in provisions. Unexciting near-term prospects with still high provisions in 1Q15, restructuring costs. FY15 11% ROE target does not include restructuring costs. HOLD and MYR5.70 TP (FY15 P/BV of 1.2x) maintained. Click here for full report » RHB Capital: Maintain Buy Looking to raise capital FY14 net profit in-line; FY15 targets loan growth of 10%, CIR of 11.5%. We see room for higher cost efficiencies, FY15/FY16 net profit forecasts raised 2% respectively. We estimate a MYR1.5b rights issue, already reflected in our TP of MYR9.00 pegged to FY15 P/BV of 1.1x. BUY. Click here for full report » 7-Eleven Malaysia Holdings: Maintain Hold FY14: In line FY14 core net profit of MYR63m within expectations. Expect positive revenue momentum on new store openings and increased traffic coming from newly renovated stores. Maintain HOLD with an unchanged TP of MYR1.73. Click here for full report » Star Publications: Maintain Buy 7.2% dividend yield delivered!!!  Shariah-compliant 4Q14 and 2014 core profits beat expectations due to low tax. Importantly, 2H14 DPS of 9sen brought 2014 DPS to 18sen. Offers 7.2% dividend yield!!! Maintain BUY and MYR2.65 TP. Click here for full report » MBM Resources: Maintain Buy Recovery in motion  Shariah-compliant FY14 earnings within our and consensus forecasts. Earnings unchanged pending analyst briefing today. Maintain BUY with an unchanged MYR3.50 TP (9x FY15 PER). Click here for full report » NCB Holdings: Maintain Buy Recovery in 2015?  Shariah-compliant 4Q14 results above expectations on higher throughput. Earnings could recover with the legacy volumes already out of the system; Jan 2015 container volume rose 13% YoY. Maintain BUY and TP of MYR3.00 (1x P/BV). Click here for full report » IHH Healthcare: Maintain Hold Strong finish in the price  Shariah-compliant FY14 core met, at 96% of our FY14E. Ramp-up of hospital openings in recent years & new beds to spur growth. Maintain HOLD as positives priced in. SOTP TP raised to MYR5.21, from MYR4.82, to reflect higher ratings enjoyed by peers. Click here for full report » Outside Malaysia U.S: Sentiment among American consumers in February cools from 11-year high, reflecting recent gains in fuel costs and bad winter weather in parts of the U.S. The University of Michigan final index of sentiment fell to 95.4, the first decrease in seven months, from January's 98.1 that was the highest since the start of 2004. (Source: Bloomberg) U.S. GDP grew less than previously estimated in 4Q 2014, restrained by a smaller gain in stockpiles and widening trade gap. Gross domestic product, the value of all goods and services produced, rose at a 2.2% annualized rate, down from an initial estimate of 2.6%, Commerce Department figures showed. (Source: Bloomberg) China: Seeks to cushion economy as leaders meet to set 2015 goals. China showed its determination to combat a slowdown in the world's second-largest economy, cutting interest rates before a yearly gathering of the legislature where the Communist leadership typically unveils its goals for the year. The PBOC lowered the one-year deposit rate to 2.5% and the one-year lending rate to 5.35%, the Beijing-based central bank said. It increased the deposit-rate ceiling to 1.3 times from 1.2, meaning lenders can pay a larger margin over the benchmark. (Source: Bloomberg) China: Factory gauge shows weakness that spurred rate cut. A Chinese factory gauge signaled contraction again in February, a day after the central bank's decision to step up support for the economy with its second cut to benchmark interest rates in three months. The government's manufacturing Purchasing Managers' Index was 49.9 last month from 49.8 in January, according to the statistics bureau and the China Federation of Logistics and Purchasing in Beijing. Numbers below 50 signal contraction. (Source: Bloomberg) India: Modi�s pro-growth budget keeps subsidies untouched. The shortfall will narrow to 3.9% of GDP in the year starting April 1, the smallest gap since 2008 but higher than a previous goal of 3.6%, Finance Minister Arun Jaitley told lawmakers. He also cut corporate taxes and increased infrastructure spending. "People who urge us to undertake big bang reforms also say the Indian economy is a super-giant that moves slowly but surely," Jaitley said. "Even our worst critics would say we have moved rapidly." (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,821.2 (2.5) 0.0 JCI 5,450.3 27.5 (0.0) STI 3,402.9 7.4 (0.7) SET 1,587.0 22.2 (0.4) HSI 24,823.3 6.5 (0.3) KOSPI 1,985.8 (1.3) (0.4) TWSE 9,622.1 11.7 0.0 DJIA 18,132.7 9.4 (0.4) S&P 2,104.5 13.9 (0.3) FTSE 6,946.7 2.9 (0.0) MYR/USD 3.610 10.1 1.0 CPO (1mth) 2,321.0 (11.7) 1.3 Crude Oil (1mth) 49.8 (49.4) 3.3 Gold 1,206.4 0.3 (1.0) TOP STOCK PICKS Buy rated large caps Price Target Axiata 7.16 7.60 Tenaga Nasional 14.72 16.00 Sime Darby 9.33 10.20 Genting Malaysia 4.11 4.60 Gamuda 5.26 6.00 AirAsia 2.62 2.65 Westport 3.44 3.80 SP Setia 3.49 4.07 AFG 4.82 5.30 Hartalega 8.05 8.50