Malaysia Daily, Maybank KE (2014-04-01)

Daily	01 April 2014
RESULTS REVIEW Astro Malaysia Holdings: Maintain Hold Decent end to FY1/14 Results within expectations. Growth slows in 4QFY1/14 but expected to reaccelerate. Maintain HOLD but tweak TP 4% higher to MYR3.37. Click here for full report » COMPANY UPDATE Bumi Armada: Maintain Buy Bags Eni�s LOI for Angola�s FPSO job Bare-boat charter worth USD2.9b over 12-year firm period; projected to hit 1st oil by Oct 2016. Conversion works on the FPSO will take about 31 months to complete, on USD1.5b capex plan. Maintain BUY and MYR5.00 SOP TP. Click here for full report » Cahya Mata Sarawak: Maintain Buy Liquidity Boosters  Shariah-compliant Proposed a 2-for-1 share split and 1-for-2 bonus issue. These will improve trading liquidity and affordability. Potential acquisitions and new investments would further re-rate the stock positively. Reiterate BUY. Click here for full report » JT International: Maintain Hold Proposed Takeover Offer Parent JT International Holding B.V. (JTIH) to privatise 60.4%-owned JT International Bhd (RJR) at MYR7.80 / share. The takeover price translates to 16x 2014 PER, close to historical peak - we recommend investors accept the offer. TP raised to MYR7.80 from MYR6.70 to reflect the offer. Click here for full report » Technicals Buy on weakness The FBMKLCI declined 1.52 points to close at 1,849.21 yesterday, but the FBMEMAS and FBM100 closed higher by 9.72 points and 7.71 points respectively. We recommend a �Buy on Dips� stance for the index. Trading idea is a Short-Term Buy on OCK with upside target areas at MYR1.31 & MYR1.59. Stop loss is at MYR0.98. Click here for full report » Other Local News Automotive: Interest on car loans has increased quietly. Starting two weeks ago, interest rates on hire purchase loans have increased by about 40 basis points for both national and non-international cars. Increase was said to be an �order� from Bank Negara Malaysia, partly due to concerns over rising non-performing loans (NPL) for motor vehicles. (Source: The Edge Financial Daily) Oil & Gas: PGB renews 20-year contract with Petronas. Petronas Gas Berhad (PGB) entered into new agreements with its parent, Petroliam Nasional Berhad (Petronas) for another 20 years contract starting today, to replace the existing Gas Processing and Transmission Agreement (GPTA) that has lasted for 20 years. Under new agreements, PGB will continue to provide gas processing, gas transport and agent services to Petronas. Gas will be transported to Petronas�s customers via PGB�s pipeline systems in Peninsular Malaysia, Sabah and Sarawak. (Source:The Edge Financial Daily) Astro: Seeks boosting revenue, wants to attract customers to premium channel offerings. Astro hopes to boost average revenue per user (ARPU) by luring customers to subscribe to its expanding premium channels. Most of Astro�s customers are now on the B.yond high definition (HD) TV platform and they expect new additional transponders in the second half of the year which will be used to introduce premium and value added services such as HD channels. (Source: The Star) Star Publications: Lee resigns from Star Publications. Executive deputy chairman Tan Sri Vincent Lee Fook Long, 60, has resigned from his position in the company, to pursue other professional interests and commitments. He has been steadily disposing of his stake in the company over the last four months. He no longer holds any shares in Star, having sold his last batch on March 13. (Source: The Star) Public Bank: To focus on growing retail loans and overseas expansion. Public wants to open at least 2 branches each in Cambodia, Laos and Sri Lanka. Acceleration of overseas expansion by focusing growth on retail loans, deposits and fee based activities; enhancing revenue stream though diversification of income sources, creating market niche for products and intensifying efforts to build a stronger customer base. (Source: The Edge Financial Daily) Outside Malaysia E.U: Euro-Area inflation at four-year low misses estimates. Consumer prices grew 0.5% YoY, after a 0.7% YoY gain in February, the European Union's statistics office in Luxembourg said. The inflation rate has been below 1% for six months, while the ECB seeks to keep it at just under 2%. (Source: Bloomberg) Japan: Industrial production fell in February, undershooting all forecasts by economists surveyed by Bloomberg News, as the first sales-tax increase since 1997 risks stalling recovery in the world's third-biggest economy. Output fell 2.3% MoM from the previous month, the steepest drop in eight months, the trade ministry said. A separate gauge of manufacturing fell in March for a second straight month. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,849.2 (1.0) (0.1) JCI 4,768.3 11.6 0.0 STI 3,188.6 0.7 0.5 SET 1,376.3 6.0 0.5 HSI 22,151.1 (5.0) 0.4 KOSPI 1,985.6 (1.3) 0.2 TWSE 8,849.3 2.8 0.9 DJIA 16,457.7 (0.7) 0.8 S&P 1,872.3 1.3 0.8 FTSE 6,598.4 (2.2) (0.3) MYR/USD 3.3 (0.3) (0.2) CPO (1mth) 2,718.0 3.4 (0.6) Crude Oil (1mth) 101.6 3.2 (0.1) Gold 1,284.0 6.9 (0.9) TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.96 14.00 Genting Msia 4.20 4.74 HLBK 14.14 16.40 AMMB Holdings 7.18 8.50 Bumi Armada 3.91 5.00 IJM Corp 6.14 6.75 Time dotCom 3.85 4.40 MPHB Capital 1.82 2.42 Cahya Mata Swak 9.80 10.50