Malaysia Daily, Maybank KE (2015-03-10)

Daily 10 March 2015 COMPANY UPDATE WCT Holdings: Maintain Buy Key project win; TP raised  Shariah-compliant Major MYR1.2b job win in Qatar is a positive surprise. We raise FY15-17 earnings forecasts by 10-14% p.a.. Reiterate BUY with a higher MYR2.10 TP (+11%). Click here for full report » RESULTS REVIEW Berjaya Auto: Maintain Buy No major surprises  Shariah-compliant 9MFY4/15 earnings within our and consensus forecasts. Catalysts: New model launches, lower COGS from weak Yen forex and potentially higher dividend payout or synergistic acquisition/new ventures given strong cash war chest. Reiterate BUY. TP is unchanged at MYR4.20 (13x CY15 PER). Click here for full report » Technicals Index�s downward stop is to 1,770 The FBMKLCI tumbled 15.22 points to 1,791.74 yesterday, while the FBMEMAS and FBM100 also closed lower by 90.56 points and 86.38 points, respectively. We expect weak nibbling at the supports of 1,770 to 1,788, whilst very heavy liquidation activities cap all rebounds at the resistances of 1,791 and 1,826. Trading idea is a Take profit call on AAX with downside target areas at MYR0.46 & MYR0.14. Click here for full report » Other Local News Puncak Niaga: In limbo as water agreement lapses. It is likely to be in limbo over its water assets which it has agreed to divest to Pengurusan Air Selangor Sdn Bhd (Air Selangor) as part of the state's water industry consolidation. Sale and purchase agreement (SPA) that both parties got into November, 2014 is void now after the state government had declined to give a third extension to the master water agreement which lapsed yesterday. (Source: The Edge Financial Daily) Brahim�s Holdings: In talks to buy local F&B firm, but stopped short of naming it, confirms Edge report. The Edge weekly reported sources as saying that Brahim's had been in talks to acquire TCRS Restaurants Sdn Bhd in a bid to reduce its dependency on the catering business. Brahim's emphasized that the acquisition may or may not materialize. (Source: The Edge Financial Daily) Maybank: 'Stong pipeline' of Malaysia, Thailand equity deals. CEO of Maybank Kim Eng Group foresees a "robust" flow of transactions this year in the region, where economic growth is expected to expand faster than global output. Maybank Kim Eng is expecting another good year for 2015 and that is already has a strong pipeline of deals for Malaysia and Thailand and have a number of very strong prospects for all the other markets. (Source: The Edge Financial Daily) Eita Resources: Seeks earnings lift via JVs, M&As. It announced a joint venture with China's Shanghai STEP Electric Corp, aims to grow its elevators and bus duct manufacturing segment to contribute 70% of its top line within five years' time through more JVs as well as mergers and acquisitions M&As. In a separate note, the group said that it has been awarded a RM19.39 million contract for the supply, delivery, installation, testing and commissioning of the lift services at RISDA building in Kuala Lumpur. (Source: The Sun, The Edge Financial Daily) Outside Malaysia Greece: Rescue talks to resume as Euro Area demands urgent action. Greece will resume talks with its creditors this week after euro-area finance ministers demanded urgent action to avert an impending cash crunch. Greece could gain access to part of its remaining bailout funds if it follows through with the required reforms, Dutch Finance Minister Jeroen Dijsselbloem said after a meeting in Brussels. Dijsselbloem, who heads the finance ministers' group, said talks will resume Wednesday to get a better picture of Greece's needs and the steps it is taking. (Source: Bloomberg) Japan: Companies cut investment in the nine months through December, even as cash on hand soars and profits are forecast to hit a record. Capital spending dropped 0.1% in October-December, the third straight quarter of declines, data showed. In the same period, cash on hand at Japanese companies listed on the Nikkei 225 rose to almost JPY 168t (USD 1.4t). That was double the level at the end of March 2013, three months after Prime Minister Shinzo Abe took office.(Source: Bloomberg) Japan: Emergence from recession was weaker than first estimated as companies unexpectedly cut investment and drew down their inventories, offsetting a pickup in consumer spending. GDP expanded an annualized 1.5% in the three months through December from the previous quarter, less than a preliminary 2.2%, revised government data show. The rebound followed a contraction caused by an increase in the sales tax last April. (Source: Bloomberg) Crude Oil: Glut seen easing in second half of year by head of OPEC. The global crude-oil market will return to balance in the second half of this year as demand growth picks up and high-cost producers trim output amid lower prices, OPEC Secretary-General Abdalla El-Badri said. Consumption in 2015 will increase by 1.2 million barrels a day after rising more slowly than expected last year by less than 1 million barrels a day, El-Badri said. Crude has lost half its value since June, raising risks for suppliers with comparatively high costs of production. The U.S. is idling rigs and delaying wells even as it pumps oil from shale and other deposits at the fastest pace since 1983. Cheaper crude is a boon to countries such as China and India that rely on energy imports, and OPEC's decision on Nov. 27 to maintain production rather than sacrifice market share has added to the glut. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,791.7 (4.0) (0.8) JCI 5,444.6 27.4 (1.3) STI 3,404.6 7.5 (0.4) SET 1,559.7 20.1 (0.5) HSI 24,123.1 3.5 (0.2) KOSPI 1,992.8 (0.9) (1.0) TWSE 9,563.0 11.0 (0.9) DJIA 17,995.7 8.6 0.8 S&P 2,079.4 12.5 0.4 FTSE 6,876.5 1.9 (0.5) MYR/USD 3.682 12.4 0.9 CPO (1mth) 2,280.0 (13.2) (1.4) Crude Oil (1mth) 50.0 (49.2) 0.8 Gold 1,175.0 (2.2) (1.8) TOP STOCK PICKS Buy rated large caps Price Target Tenaga Nasional 14.62 16.00 Sime Darby 9.34 10.20 Genting Malaysia 4.02 4.60 Gamuda 5.28 6.00 Westport 3.55 3.80 SP Setia 3.34 4.07 AFG 4.76 5.30 Hartalega 8.00 8.50 Inari 3.24 3.95 MBM Resources 3.26 4.20 Vitrox 3.26 4.05