Malaysia Daily, Maybank KE (2015-02-17)

Daily 17 February 2015 RESULTS REVIEW Alliance Financial Group: Maintain Buy Higher credit costs, lower NOII 9MFY3/15 core net profit of MYR418m (+5% YoY) below expectations due higher credit costs, lower NOII. FY15-FY17 net profit forecasts lowered by 5-6% p.a., factoring in higher credit costs. BUY maintained on a lower TP of MYR5.30 (MYR5.50 previously); dividend yield decent at 4.3% for FY15. Click here for full report » Kuala Lumpur Kepong: Maintain Hold Below street estimates  Shariah-compliant 1QFY9/15 results within our expectation, but below street estimates. Challenging business environment to persist for its oleo-chemical, refinery and property businesses in FY9/15. Maintain HOLD with an unchanged TP of MYR21.40 on unchanged 23x FY16 PER target. Click here for full report » Mah Sing Group: Maintain Hold Results on track  Shariah-compliant FY14 net profit of MYR339m (+21% YoY) is in line. We tweak FY15/16 net profit forecasts by -4%/-9%. FY15/16 net profit to grow by 19%/16% supported by MYR5.3b worth of unbilled sales (2x our FY15 revenue forecast). Our TP is marginally raised to MYR2.22 (+6sen) on unchanged 0.64x P/RNAV target. Maintain HOLD. Click here for full report » Padini: Maintain Buy Weaker-than-expected margins  Shariah-compliant 1HFY6/15 net profit of MYR35.5m fell short due to weaker-than-expected margins. Shave FY15-17 EPS estimates by 0.8-4.1% on lower margin assumptions. Maintain BUY with a lower MYR1.80 TP; yield remains attractive at 6.8%. Click here for full report » British American Tobacco: Maintain Hold Marginal shortfall BAT�s FY14 results marginally below expectations. Volumes continue to contract, Dunhill�s market share slips. Maintain HOLD with an unchanged TP of MYR64. Dividend yield of 4.7% provides support. Click here for full report » Technicals Inching up ahead of CNY The FBMKLCI advanced 7.94 points to 1,808.89 yesterday, while the FBMEMAS and FBM100 also closed higher by 34.20 points and 32.28 points, respectively. We recommend a �Range Trading� stance for the index. Trading idea is a Short-Term Buy call on HEVEA with upside target areas at MYR2.93 & MYR3.58. Stop loss is at MYR2.54. Click here for full report » Other Local News Construction: Kidex project is off. The Selangor government has withdrawn its approval in principle for the controversial MYR2.42b Kinrara-Damansara Expressway (Kidex) project, after the concessionaire cum developer - Kidex Sdn Bhd - failed to fulfil conditions set by the state by the Feb 14 deadline. Former Petaling Jaya City councilor Derek Fernandez said that while the proposed project by Kidex Sdn Bhd had been rejected, it does not stop a new company from applying for a fresh concession to undertake the project. (Source: The Edge Financial Daily) Melati Ehsan Holdings: Banks on MYR2b GDV Sports City. Melati Ehsan Holdings is banking on the 15.8-acre (6.39ha) Sports City project in Kelana Jaya, Selangor, estimated to carry a gross development value (GDV) of about MYR2b, to boost its financial year ending Aug 31, 205 (FY15) earnings. Sports City is a joint venture project with PKNS, to redevelop the PKNS Sports Complex in Kelana Jaya. (Source: The Edge Financial Daily) MBSB: Sets in motion 5-year plan spurred by record profit. Non-bank lender Malaysia Building Society (MBSB), fresh from posting profits crossing the MYR1b mark, will set in motion a five-year business plan to reduce its dependence on the retail sector. President and chief executive officer Datuk Ahmad Zaini Othman said the new plan, which is to run from 2015 to 2020, targets to shift its loan portfolio to a 70:30 exposure ratio between the retail and corporate sectors, from the 85:15 it has currently. (Source: The Star) Outside Malaysia U.K: BOE pushes rate-increase view even as inflation rate drops. Bank of England policy makers Ben Broadbent and Martin Weale said weak U.K. inflation will be temporary and indicated that the chance of more stimulus remains low. While the bank said last week it could respond to weak price pressures with an interest-rate reduction or more bond purchases, policy makers are pushing the message that such an outcome isn't the most likely scenario. (Source: Bloomberg) Greece: Euro-Area finance ministers' talks with Greece break up on rift. Talks between Greece and its official creditors in Brussels broke up on Monday after the country's new government said it could not accept euro-area proposals for it to stick to the terms of its bailout. The Greek government labeled the eurogroup�s demands "absurd" and "unacceptable," in an e-mailed statement shortly before the meeting ended. (Source: Bloomberg) Thailand: Recorded its slowest economic growth in three years in 2014 as political unrest curbed local consumption, while lower agricultural prices and cooling global demand hurt exports. GDP rose 0.7% last year, the National Economic and Social Development Board said, matching the median estimate of 15 analysts in a Bloomberg survey. GDP grew 2.3% YoY in the three months through December. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,808.9 (3.1) 0.4 JCI 5,325.5 24.6 (0.9) STI 3,427.2 8.2 0.0 SET 1,608.0 23.8 (0.5) HSI 24,726.5 6.1 0.2 KOSPI 1,958.2 (2.6) 0.0 TWSE 9,529.5 10.7 0.0 DJIA 18,019.4 8.7 0.0 S&P 2,097.0 13.5 0.0 FTSE 6,857.1 1.6 (0.2) MYR/USD 3.581 9.2 0.3 CPO (1mth) 2,305.0 (12.3) 1.8 Crude Oil (1mth) 52.8 (46.4) 0.0 Gold 1,233.6 2.6 0.7 TOP STOCK PICKS Buy rated large caps Price Target Axiata 7.17 7.80 Tenaga Nasional 14.82 16.00 Sime Darby 9.53 10.20 Genting Malaysia 4.18 4.60 Gamuda 5.15 6.00 AirAsia 2.78 3.00 Westport 3.50 3.60 SP Setia 3.54 3.98 AFG 4.80 5.50 Hartalega 7.55 8.50