Affin Hwang Capital Daily Insight (LV) - 6 November 2014 - MMHE / PGAS / JTIASA / FIXED INCOME RESEARCH

Top Calls

Results Note � MMHE (REDUCE, maintain) - Weak results, challenging outlook MMHE�s 9M14 core pretax profit fell by 40% yoy to RM90m on weaker EBIT margins from both the offshore and marine businesses. Results are below consensus and our expectations. The group has merely secured RM325m of new contracts YTD, likely to miss our forecast of RM2.5bn. We cut our 2014-16E pretax profit forecast by 24-28%, and slash our TP to RM2.00 (from RM3.10), pegging the group at a lower target PER of 18x (from 21x). Maintain REDUCE.

Other Calls

Company Update � Petronas Gas (REDUCE, maintain) - Pengerang RGT on the horizon

Company Update � Jaya Tiasa (REDUCE, maintain) - Log production down due to bad weather

Fixed Income Research - Slightly biddish, focus on 7yr MGS

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