Affin Daily Insight (LV) - 27 August 2014 - HLBK / IJM / IJMLD / KPJ / CARLSBG / PKS / UOA / IJMP / INARI / SUPERMX

Top Calls

Results Note � Hong Leong Bank (BUY, maintain) - Dividend surprise, domestic operations remain steady Hong Leong Bank�s FY14 headline net profit of RM2,102.3m (+13.3% yoy) was partially boosted by strong 4QFY06/14 net earnings (+29.1% yoy) due to a one-off tax credit of RM59.8m. Meanwhile, core net profit of RM2,043m is in line with our and the street�s estimates. Robust contribution from 20%-owned associate Bank of Chengdu (profits +40% yoy, accounting fro 14% of group PBT), continues to drive group earnings. A final DPS of 26 sen came as a surprise to us (4QFY06/13: 22.5 sen). We maintain our BUY rating on HLB with an unchanged price target of RM17.00, based on a CY15E P/BV target multiple of 1.8x. Management remains aggressive with key transformations underway, such as to be a Top 10 ASEAN bank, achieving a long-term non-interest income target of 35%, targeting higher loan growth of 10% in FY06/15 and lowering the cost-to-income ratio to 42-44%.

Other Calls

Results Note � IJM Corp (Not rated) - Higher core net profit in 1QFY15

Results Note � IJM Land (Not rated) - A slow start to FY03/15

Results Note � KPJ Healthcare (REDUCE, maintain) - Margins improved through better cost control

Results Note � Carlsberg (REDUCE, downgrade from ADD) - Hammering down costs

Results Note � Parkson (SELL, downgrade from REDUCE) - Higher costs drag down FY14 earnings

Results Note � UOA Development (ADD, maintain) - Weaker earnings yoy due to absence of lumpy sales

Results Note � IJM Plant (BUY, maintain) - Below expectations, CPO price significantly lower

Results Note - Inari Amertron (BUY, maintain) - Another commendable results!

Results Note - Supermax (ADD, downgrade from BUY) - Disappointing 2QFY14 results

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