Analyst calls for Sept 6
KUALA LUMPUR, Sept 6 — This is a selection of morning calls by local research houses for the day.
RHB Research
IJM Land
We brought 19 clients on a roadtrip to IJM Land’s Bandar Rimbayu last Thursday. The construction of The Arc and the show village has already started.
Total number of registrants has amounted to >7,000, compared to only 526 units of linked houses offered in the first phase (GDV RM330 million). Pricing at RM580,000 and above is at a slight premium of 10 per cent compared to the surrounding townships. We believe meaningful property price appreciation will materialise in at least five year’s time when the Greenfield township starts to mature.
No change in forecasts. Fair value is kept at RM2.80.
TNB
Management highlighted that TNB sees non-regulated businesses as the key growth driver going forward, and is targeting RM5 billion in revenue by 2015 (FY11: RM1.8 billion).
We understand that the gas supply situation has improved qoq to 1,000 mmscfd (3QFY12: 960 mmscfd), which suggests that 4QFY12 earnings will be stronger.
It remains unclear how TNB will be compensated from buying LNG at market price (RM44/mmbtu), but management reiterated its stance that any impact will be earnings neutral.
Maintain Outperform call on TNB with unchanged fair value of RM7.80.
Astro
Airasia group chief executive Tan Sri Tony Fernandes and AirAsia X chief executive Azran Osman Rani have denied reports that AirAsia or AirAsia X airline is buying Serbia’s national flag carrier, JAT Airways. (Business Times)
This removes concerns that AirAsia is taking excessive risks in expanding its operations.
Maxis
Maxis Bhd’s wholly-owned subsidiary Maxis Broadband Sdn Bhd has inked an exclusive 10-year strategic partnership with Measat Broadcast Network Systems Sdn Bhd (Astro) yesterday for the provision of IPTV and broadband services. (Financial Edge)
Both companies formalised the partnership as announced by Maxis on 30 Aug. Astro confirmed that the new partnership with Maxis will not affect its existing agreement with Time dotCom, which specifically caters for high-rise residences.
OSK Research
Positive surprises in the offing
At MBSB’s analyst briefing yesterday, we came to understand that the management will take priority in boosting its non-interest income, mainly through commissions from bancassurance agreements, and that several fund-raising exercises will likely happen as part of its capital management process. We have raised our forecast for FY12/13 by 2-3 per cent to take into account a more aggressive loans growth. Maintain BUY, with FV revised to RM3.02 from RM2.70 previously, premised on 2.6x 12-month forward PBV.
COMEX Gold Futures — Testing US$1,700 resistance
The commodity’s rebound following an upside breakout of the four-month sideways consolidation continues after it broke above the US$1,675 resistance level early-week. The upward bias was underlined by a bounce off the 200-day MAV line on a “Long White Day”, which sent the commodity to the highest close in almost six months.
Daily trading stocks: SCOMI, JCY, HAPSENG, RSAWIT, SYF, AMEDIA
These recommendations are solely the opinion of the respective research firms and not endorsed by The Malaysian Insider. The Malaysian Insider shall not be liable for any loss arising from any investment based on any recommendation, forecast or other information contained here.
