Malaysia Daily, Maybank KE (2014-04-16)

Daily 16 April 2014 COMPANY UPDATE Malaysian Airlines System: Upgrade to Hold What if MAS is privatised?  Shariah-compliant The MAS Group can be segregated to seven business units, five units are profitable and two are loss making. Our theoretical break-up value of just its profitable units is MYR4,154m, which is 18% above its current MCAP. Upgrade to HOLD (from SELL) with a revised TP of MYR0.22 (vs. MYR0.275); we think the stock has reached the bottom. Click here for full report » Technicals Range bound and inching up The FBMKLCI rose 2.35 points to close at 1,853.88 yesterday, while the FBMEMAS and FBM100 also closed higher by 23.36 points and 27.41 points, respectively. Trading idea is a Short-Term Buy on ORIENT with upside target areas at MYR8.20 & MYR8.53. Stop loss is at MYR7.33. Click here for full report » Other Local News Bina Puri: Bags MYR248m fishering complex job. The job is to plan, design and build a government fishery complex in Kuching. Construction of the complex would take 36 months. With this, it raises it's unbuilt orderbook to MYR1.93b. (Source: The Star) AirAsia : Relents, to move by May 9. Airline to start operations at klia2 despite outstanding commercial issues. The group's announcement signifies its willingness to end its deadlock with Malaysia Airports Holdings Bhd, which has been steadfast in stand to close the current LCCT by May 9. (Source: The Edge Financial Daily) TIME dotCom: Part of consortium to build and maintain submarine cable. This job consists of building and maintaining a 25,000km Submarine cable system linking Asia and Europe via the Middle East. (Source: The Edge Financial Daily) Outside Malaysia U.S: Accelerating inflation adds to signs of improvement. The consumer-price index climbed 0.2% MoM after increasing 0.1% MoM in February, a Labor Department report showed. Over the past year, costs rose 1.5% YoY following a 1.1% YoY gain in February that was the smallest in four months. (Source: Bloomberg) U.K: Inflation rate declines to 1.6% YoY, lowest in 4 1/2 years. This compared with 1.7% YoY in February, the Office for National Statistics said. Core inflation also slowed to 1.6% YoY. (Source: Bloomberg) Japan: Population shrinks for third year as ranks of aged grow. Japan�s population slid for a third year with the proportion of people over the age of 65 rising to a record, underscoring the challenge the world�s most-indebted economy faces in financing its aging society. The population declined by 0.17% to 127.3 million as of Oct. 1, as the country maintains one of the world's lowest birth rate. People age 65 or older made up one fourth of the total, the highest-ever percentage, as postwar baby boomers head into retirement, the Internal Affairs Ministry said on its website. (Source: Bloomberg) India: Consumer inflation quickens, adding rate pressure. The consumer-price index rose 8.31% YoY, compared with a revised 8.03% YoY in February, the Central Statistics Office said in New Delhi. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,853.9 (0.7) 0.1 JCI 4,870.2 13.9 0.1 STI 3,246.3 2.5 1.0 SET 1,389.2 7.0 0.0 HSI 22,671.3 (2.7) (1.6) KOSPI 1,992.3 (0.9) (0.2) TWSE 8,916.7 3.5 0.7 DJIA 16,262.6 (1.9) 0.6 S&P 1,843.0 (0.3) 0.7 FTSE 6,541.6 (3.1) (0.6) MYR/USD 3.2 (1.0) (0.2) CPO (1mth) 2,680.0 2.0 0.4 Crude Oil (1mth) 103.8 5.4 (0.3) Gold 1,302.6 8.4 (1.9) TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.92 14.00 Genting Msia 4.26 4.74 HLBK 14.06 16.40 AMMB Holdings 7.16 8.50 Bumi Armada 4.01 5.00 IJM Corp 6.41 6.75 Time dotCom 4.41 4.40 MPHB Capital 2.01 2.42