Affin Hwang Capital Daily Insight (LV) - 13 May 2016 - PENB / BUILDING MATERIALS / SPSB / MPRIMA / ECONOMY - IPI / ECONOMY - IOS / ECONOMY - ASEAN OUTLOOK

Top Calls

Company Update � Petra Energy (BUY, maintain) - Higher crude prices likely to drive earnings Weaker HuC work orders and lower marine asset utilisation could drag PENB�s OES division to a loss, but earnings from the KBM cluster RSC should sustain 2016E group earnings. We cut our 2016E earnings by 11%, but raise those for 2017-18E by 39-71% after stronger RSC earnings driven by higher crude prices, which should mitigate weakness at the OES division. In 1Q16E we expect PENB to post a loss on seasonality and weak crude prices, but remain confident that it can hit our 2016E earnings. Reaffirm BUY.

Other Calls

Sector Update � Building Materials (NEUTRAL, maintain) - Steel: Recent rally in prices unlikely to sustain

Results Note � SP Setia (BUY, maintain) - Strong unbilled sales of RM8.6bn

Results Note � Media Prima (SELL, maintain) - Print segment deteriorates further

Economy � IPI - Growth in IPI slowed to 2.8% yoy in March

Economy � Index Of Services (IOS) - Sustained increase in growth of private services sector

Economy � ASEAN Outlook � Weekly Wrap - Most Asean central banks kept policy rates unchanged

Morning News & Market Summary

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