Malaysia Daily, Maybank KE (2015-04-21)

Daily 21 April 2015 RESULTS REVIEW Public Bank: Maintain HOLD A decent start to the year Marginally above expectations with very decent 15% YoY net profit growth, aided in part by pre-GST spending. Management targets still relevant � domestic loan growth of 9-10%, NIM compression of 8-10bps. HOLD maintained with a marginally higher TP of MYR19.50 (MYR19.20 previously) on the back of 2% earnings upgrades. Click here for full report » Nestle Malaysia: Maintain Hold 1Q15: In line  Shariah-compliant 1Q15 net profit within expectations. We expect a softer 2Q, followed by a pick-up towards year end as consumers adjust to the new normal (post-GST). Maintain HOLD with an unchanged DCF-based TP of MYR68. Click here for full report » Axis REIT: Maintain Hold Below expectations 1Q15 core net profit of MYR23m (+0.9% YoY) disappointed. Shave FY15-17 core net profit forecasts by 2.3-2.4%. Maintain HOLD. DCF-based TP trimmed to MYR3.35 (-2 sen). Click here for full report » Technicals Inching up towards 1,850 and higher The FBMKLCI gained 2.80 points to 1,848.66 yesterday, while the FBMEMAS and FBM100 also closed higher by 11.51 points and 12.80 points, respectively. We recommend a �Nibble on Dips� stance for the index. Trading idea is a Short-Term Buy on PHARMA with upside target areas at MYR7.35 & MYR8.03. Stop loss is at MYR5.98. Click here for full report » Other Local News Property: Impian Bebas gets MYR1b financing for Lot 91 project at KLCC. Maybank Investment Bank Bhd, Public Islamic Bank Bhd and RHB Islamic Bank Bhd signed an agreement with Impian Bebas on Monday to provide a 15-year syndicated Islamic term financing. Lot 91 would be a mixed commercial development comprising of office tower, convention centre and retail podium. The project is expected to be completed by 2020. (Source: The Star) AirAsia: Plans USD300m IPO for Indonesian unit in 2016. AirAsia plans to sell a 30% stake in the Indonesian carrier. AirAsia will be assigning the bankers for the IPO soon and will be making the announcement on that matter in the next couple of month. The airline is hoping to take advantage of rapid growth in Asia Pacific, where the number of passengers is projected to grow nearly 5% a year in the next two decades. Also, the airline expects to start a Japan venture early next year and is currently in the final stages of the application process. (Source: The Edge Financial Daily) Ecofirst: Inks option to buy land from IGB for MYR63m. This property firm has signed an option agreement to buy a 25-acre freehold parcel in Gombak, Selangor, which is situated just beside the 62 acres it was acquiring from Zurich Insurance (M) Bhd for MYR145m. The new land can complement the mixed project it has proposed for the Zurich land. (Source: The Star) Top Glove: Buys Bukit Raja land for more MYR20m from Century Logistics. Sales and purchase agreement was expected to be signed within 21 days from the date of acceptance on 17 April,2015. (Source: The Star) Outside Malaysia U.K: Asking prices for property climbed to a record in April as a shortage of homes for sale worsened, Rightmove Plc said. The average price rose 1.6% from March to GBP 286,133 (USD 428,000), reflecting a 4% drop in the number of new sellers this year compared with 2014, the property website operator said. Values in London rose 2.5%. All major political parties have promised to do more to alleviate strains in the housing market with less than three weeks to go before the May 7 general election. (Source: Bloomberg) Greece: Tsipras to seize public-sector funds to keep country afloat. Running out of options to keep his country afloat, Greek Prime Minister Alexis Tsipras ordered local governments to move their funds to the central bank. With negotiations over bailout aid deadlocked, Tsipras needs the cash for salaries, pensions and a repayment to the International Monetary Fund. Greek bonds fell after the move, pushing three-year yields to the highest since the nation's debt restructuring in 2012. The decree to confiscate reserves now held in commercial banks and transfer them to the central bank could raise about EUR 2b (USD 2.15b), according to two people familiar with the decision. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,848.7 (1.0) 0.2 JCI 5,400.8 26.4 (0.2) STI 3,503.3 10.6 (0.6) SET 1,560.3 20.1 (0.4) HSI 27,094.9 16.3 (2.0) KOSPI 2,146.7 6.7 0.1 TWSE 9,552.9 10.9 (0.2) DJIA 18,034.9 8.8 1.2 S&P 2,100.4 13.6 0.9 FTSE 7,052.1 4.5 0.8 MYR/USD 3.622 10.6 (0.1) CPO (1mth) 2,190.0 (16.7) 0.3 Crude Oil (1mth) 56.4 (42.7) 1.1 Gold 1,195.9 (0.5) (0.7) TOP STOCK PICKS Buy rated large caps Price Target Tenaga Nasional 14.52 16.00 Sime Darby 9.38 10.20 Genting Malaysia 4.33 4.60 Gamuda 5.21 6.00 Westport 4.12 4.50 SP Setia 3.49 4.07 AFG 4.76 5.30 Hartalega 8.27 8.50 Inari 3.47 3.95 MBM Resources 3.32 4.20 Vitrox 3.74 4.05 Axiata 7.01 7.60