Malaysia Daily, Maybank KE (2015-03-09)

Daily 09 March 2015 RESULTS PREVIEW SP Setia: Maintain Buy 2015, an exciting year  Shariah-compliant Record sales to start reflecting from 2QFY10/15 earnings. Domestic launches receive decent take-ups; FY15�s MYR4.6b sales target (flattish YoY growth) remains intact. A defensive stock during uncertain times. Maintain earnings forecasts, MYR4.07 TP and BUY rating. Click here for full report » COMPANY UPDATE Genting Plantations: Maintain Buy A strong partner in Musim Mas  Shariah-compliant The 600k tpa refinery is needed to supply the feedstock for GENP�s upcoming 240k tpa methathesis plant in POIC. This JV with Musim Mas is a win-win partnership for both. GENP is deep in value, backed by an RNAV of MYR14.20/sh. Maintain BUY with an unchanged SOP-TP of MYR11.36. Click here for full report » 7-Eleven Malaysia Holdings: Maintain Hold Pipeline expansion on track FY14 saw SSSG of 4.7% YoY and management is targeting 4-5% SSSG for FY15. Lowering FY15-17 net profit forecasts by 6-8% p.a., premised on more subdued consumer demand ahead. HOLD with a lower TP of MYR1.65 (MYR1.73 previously) on unchanged FY15 PER target of 26.6x. Click here for full report » ECONOMICS External Trade, January 2015 Weak trade but sustained surplus Exports and imports were down YoY and MoM Reflecting uneven global economy and soft commodity prices Maintain our forecasts of slower export growth pick up in imports, thus narrower trade surplus. Click here for full report » Technicals Downward volatility from lofty levels The FBM KLCI lost 14.25 points WoW to close at 1,806.96, as some persistent liquidation activities emerged after BNM�s steady OPR policy meeting. Take profits on positions at the resistance areas of 1,806 to 1,831. The support levels of 1,738 and 1,799 will be weaker. Trading idea is a Take profit call on BRAHIMS with downside target areas at MYR0.815 & MYR0.58. Click here for full report » Other Local News Oil & Gas: Mokhzani: No plans to up stake in Yinson for now. After his resignation from the board of SapuraKencana Petroleum last Wednesday, there is now speculation that Tan Sri Mokhzani Mahathir could be looking at raising his interest in Yinson Holdings next. When contacted, however, Mokhzani responded that they had no plans to do so at the moment. (Source: The Edge Financial Daily) Technology: Green Packet eyes Latin America and Europe. Green Packet - which divested its controlling stake in Packet One Networks (Malaysia) Sdn Bhd (P1) to Telekom Malaysia (TM) last year - sees opportunities to strengthen its remaining two businesses, solutions and communications, in the Latin American and European markets. (Source: The Edge Financial Daily) Sunsuria: Major shareholder likely to inject MYR350m into Sunsuria. Sunsuria's major shareholder Datuk Ter Leong Yap is likely to inject assets in the Klang Valley and Iskandar Malaysia measuring some 350 acres into the company to further strengthen the quality of its land bank. The land worth MYR350m and with a potential gross development value of MYR10b was supposed to be injected into Sunsuria last year but the agreement lapsed. (Source: The Star) Outside Malaysia U.S: Trade deficit narrowed in January to USD 41.8b after port disputes on the West Coast restrained imports and a strengthening dollar slowed overseas demand. The gap declined from a revised USD 45.6b the month before, the Commerce Department reported. The data reflected a labor dispute at West Coast ports that skewed both imports and exports, disrupting supply chains for U.S. companies. Imports fell by 3.9% while exports dropped by 2.9%. (Source: Bloomberg) U.S: Consumer credit rises at slowest pace since November 2013 as Americans cut back on their credit-card use. The USD 11.6b advance followed a USD 17.9b gain in the previous month that was bigger than previously estimated. Non-revolving credit, which includes loans for education and motor-vehicle purchases, accelerated. Households may become more willing to borrow and take advantage of low interest rates once they see faster wage growth on the heels of an improving labor market. Employers added 295,000 workers to payrolls last month, while hourly earnings rose less than forecast, a separate report showed. (Source: Bloomberg) Germany: Industry output in January rises for fifth month as growth firms. Output, adjusted for seasonal swings, was up 0.6% MoM in January after a revised 1% MoM gain in December, a report from the Economy Ministry in Berlin showed. Production climbed 0.9% YoY. (Source: Bloomberg) China: Export gains show foreign demand still aiding growth. Exports gained more than 48 % YoY in February, though the number was skewed by distortions from the timing of the Lunar New Year holiday. Together with January, overseas sales rose 15% YoY. The trade surplus for February was USD 60.6b, above January's record of USD 60b. Exports to the U.S. in the first two months jumped 21% YoY in yuan terms. Shipments to Association of Southeast Asian Nations rose 38% YoY. The government is targeting a 6% gain in trade for 2015. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,807.0 (3.2) 0.0 JCI 5,514.8 29.0 1.2 STI 3,417.5 7.9 0.7 SET 1,568.3 20.8 1.0 HSI 24,164.0 3.7 (0.1) KOSPI 2,012.9 0.1 0.7 TWSE 9,645.8 12.0 0.5 DJIA 17,856.8 7.7 (1.5) S&P 2,071.3 12.1 (1.4) FTSE 6,911.8 2.4 (0.7) MYR/USD 3.648 11.4 (0.1) CPO (1mth) 2,312.0 (12.0) (1.6) Crude Oil (1mth) 49.6 (49.6) (2.3) Gold 1,196.6 (0.4) (0.3) TOP STOCK PICKS Buy rated large caps Price Target Tenaga Nasional 14.66 16.00 Sime Darby 9.36 10.20 Genting Malaysia 4.17 4.60 Gamuda 5.28 6.00 Westport 3.56 3.80 SP Setia 3.42 4.07 AFG 4.79 5.30 Hartalega 7.97 8.50 Inari 3.26 3.95 MBM Resources 3.29 4.20 Vitrox 3.24 4.05