FBM30 1553.18, +14.41 points (+0.94%), Volume 4,388mil, Value 3,296mil
1) KLCI rallied and held above 1550pts mark as investors remained optimistic Greece debt will be resolved while regional markets led by HSI+1.5% and SHCOMP+2% were buoyed by China Central Bank's decision to support first home buyers. Trading volume surged to 4.3bil with heavy volume seen in penny stocks led by NICORP+172%, COMPUGT+39%, SAAG+20%. Index closed near its high of 1554.06 (+15.29pts) following buying support of TENAGA+6.5% at close while GENTING-5%, GENM-5% waere sold down after the bill to allow mega casinos in Miami was withdrawn by its legislative sponsor. Market breadth was positive with advancers thumping decliners 593:322. Futures closed 1548.5 (4.5pts discount).
2) Heavyweights: TENAGA+6.5% RM6.38, SIME+2.33% RM9.68, PBBANK+1.45% RM13.96, CIMB+1.57% RM7.11, MAYBANK+0.96% RM8.41, PCHEM+2.06% RM6.93, PPB+3.02% RM17.72, GENTING-4.55% RM10.50, GENM-5% RM3.81
3) DBT: NICORP 170.1mil @ RM0.08 (24.23% PUC, 83% discount), SUNREIT 46mil @ RM1.29 (1.7% PUC), PREMIER 10mil @ 0.48 (3% PUC, 6.6% premium)
4) Situationals:
KIMLUN+5% RM1.67: Mass Rapid Transit Corporation Sdn Bhd has appointed SPC Industries Sdn Bhd, a wholly-owned subsidiary of the Company, a RM223.18mil contract as the designated supplier for the supply of segmental box girders to certain packages of the Klang Valley MRT for the Sungai Buloh to Kajang stretch. The contract is expected to spread over a period of 40 months.
NICORP+172% RM0.49: Share price hit limit up RM0.49 with 270mil shares traded. Buying interest heightened in NICORP after Crest Energy Sdn Bhd which owns 22.8% stake comprising 160mil shares was said to be in discussion to dispose off its shares. Today 170mil shares traded off market at 8sen per share.
5) JCY: Q1 12/12 Rev +27%RM559m Net +2060% RM162.5m EPS 7.94s Div 2c Results 180% above ann cons RM230m.
For Q1 yoy, the higher Rev was due mainly to higher average selling prices (ASP) as a result of shortage in HDD mechanical components after the Oct 2011 Thailand floods & appreciating USD exchange rates. Net improved by more than 20x, mainly due to the aforesaid increase in ASP/appreciating USD, coupled with effective product mix and continuing effective cost management. For the Malaysian segment, Rev+29.9%, Net+285% while the Thailand segment recorded Rev+35% but recorded a net loss of RM0.7m this year, due to unfavourable exchange rate of the Thai baht & higher labour cost. Qoq, Rev+27%, PBT+535%, due to reasons mentioned earlier. Ahead, the Thai floods have significantly changed the landscape of the HDD industry supply chain. Increase in ASP should continue to benefit JCY in the next 12 months. JCY's Thailand factories were not affected by the Thai floods and together with the soon-to-be-ready China factories (Suzhou & Foshan), Co expects to increase output in the near future.
Comments: Strong set of results, surpassing even the company's guidance to Bursa in early Jan of between between RM121-143m net profit for Q1 is +ve but expected as stk has outperformed, gaining 32% ytd.
6) Mkt - continued buying momentum to carry KLCI higher with rotational interest in mid-small cap stks. Stks at buy lvls: TMCLife, MRCB, Timecom, Waseong.
