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COMPANY UPDATE
|
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Inari Amertron: Maintain Buy
|
|
Proxy
to Avago�s expansion Shariah-compliant
|
- A Shariah-compliant
growth stock riding on near-term growth of smart-devices and
long-term growth of big data.
- We are
upbeat on Inari�s new
installed capacity to provide better scale, growth prospects and
new business proposition.
- Reiterate
BUY with an unchanged TP of MYR3.95, pegged on 16x CY16 PER.
This offers a 2x% upside and 2+% yields.
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REGIONAL SECTOR UPDATE
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Regional Plantations: Maintain Neutral
|
|
Lowest
monthly exports in 8 years
|
- Malaysia's
Feb 2015 stockpile at 7-month low; but overshadowed by
weaker-than-expected exports.
- CPO
price upside will be capped if exports remain weak in Mar 2015
without corresponding low palm oil output.
- While
we previously advocated a Trading approach in 1Q15, we are
turning Neutral on the sector following weak exports.
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Technicals
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An
immediate test of 1,770 and below
The FBMKLCI fell 2.01 points to 1,789.73 yesterday, while the FBMEMAS
and FBM100 also closed lower by 2.14 points and 4.37 points, respectively.
We recommend a �Sell on
Rallies� stance for
the index.
Trading idea is a Take profit call on AIRASIA with downside target
areas at MYR2.24 & MYR2.10.
Click here for full report »
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Other Local News
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Utilities:
Another round of PPA bidding. The Energy Commission will launch
another round of bidding for the extension of power purchase
agreements (PPAs) involving three first-generation independent power
producers (IPPs) said its chairman Datuk Abdul Razak Majid. It was
reported that the three IPPs - YTL Power International, Powertek Sdn
Bhd and Port Dickson Power (PDP) - did not secure a renewal for their
PPAs, which would be expiring in September and January next year.
(Source: The New Straits Times)
Sunsuria: Gets land bank worth MYR11b in GDV. Sunsuria
executive chairman and largest shareholder Datuk Ter Leong Yap will
inject over 440 acres into the property development company, raising
its total project gross development value (GDV) from MYR300m to MYR11b.
In a statement yesterday, Sunsuria said it had entered into several
agreements with Ter for stakes in three property companies for a
combined MYR349.9m. (Source: The Edge Financial Daily)
Telekom Malaysia: Euro debt gains favour as TM sells. Telekom
Malaysia (TM) may choose the euro for its debut global Islamic bond
sale, which would be only the fourth sukuk issuer to select the
European currency. TM is seeking to raise USD750m (MYR2.76b) as part
of a debt programme to fund capital requirements, and will pick
either the US dollar or the euro depending on which gives
"better pricing" its chief financial officer Bazlan Osman
said in an interview on Monday. (Source: The Edge Financial Daily)
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Outside Malaysia
|
|
Italy:
Industrial output falls, casting doubts on recovery timing. Italy's
industrial output unexpectedly fell in January, signaling that the
economy may fail to emerge from a record-long recession this quarter.
Production decreased 0.7% from December, when it rose 0.4%, national
statistics office Istat said. Output fell 2.2% YoY when adjusted for
working days. (Source: Bloomberg)
China: Consumer prices rose faster than forecast in February
after the central bank stepped up policy easing and the Lunar New
Year holiday pushed up food and transport costs. The consumer-price
index climbed 1.4% YoY. Producer prices fell 4.8% YoY, extending a
record stretch of declines to 36 months, driven by weaker commodity
prices. (Source: Bloomberg)
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|
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Key Indices
|
Value
|
YTD
(%)
|
Daily
(%)
|
|
KLCI
|
1,789.7
|
(4.1)
|
(0.1)
|
|
JCI
|
5,462.9
|
27.8
|
0.3
|
|
STI
|
3,398.3
|
7.3
|
(0.2)
|
|
SET
|
1,531.0
|
17.9
|
(1.8)
|
|
HSI
|
23,897.0
|
2.5
|
(0.9)
|
|
KOSPI
|
1,984.8
|
(1.3)
|
(0.4)
|
|
TWSE
|
9,536.5
|
10.7
|
(0.3)
|
|
|
|
|
|
DJIA
|
17,662.9
|
6.6
|
(1.8)
|
|
S&P
|
2,044.2
|
10.6
|
(1.7)
|
|
FTSE
|
6,702.8
|
(0.7)
|
(2.5)
|
|
|
|
|
|
MYR/USD
|
3.704
|
13.1
|
0.7
|
|
CPO (1mth)
|
2,240.0
|
(14.8)
|
(1.8)
|
|
Crude Oil (1mth)
|
48.3
|
(50.9)
|
(3.4)
|
|
Gold
|
1,161.8
|
(3.3)
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
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TOP STOCK PICKS
|
|
|
|
|
Buy rated large caps
|
|
Price
|
Target
|
|
Tenaga Nasional
|
|
14.66
|
16.00
|
|
Sime Darby
|
|
9.17
|
10.20
|
|
Genting Malaysia
|
|
4.05
|
4.60
|
|
Gamuda
|
|
5.23
|
6.00
|
|
Westport
|
|
3.65
|
3.80
|
|
SP Setia
|
|
3.40
|
4.07
|
|
AFG
|
|
4.77
|
5.30
|
|
Hartalega
|
|
8.10
|
8.50
|
|
Inari
|
|
3.29
|
3.95
|
|
MBM Resources
|
|
3.27
|
4.20
|
|
Vitrox
|
|
3.25
|
4.05
|
|
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