Highlights
of the day
§
Tan Chong Motors
(Initiating Coverage): Growth fuelled by expansion
(HOLD, TP: RM4.72) [download report]
We initiate
coverage on Tan Chong Motor Holdings (TCM), a sole distributor for Nissan Motor
Co. Growth for the Group is expected to come from the introduction of
new/upgraded models, contract assembly and strategic expansion into the
Indochina
markets. We recommend a HOLD with DCF-based target price of RM4.72 as we view
that the local auto industry is already saturated—bogged down by a pedestrian
TIV growth (average 2.2% pa) as well as stricter hire purchase policies
§
Gamuda (2QFY12
Results): Double-track earnings surprise
(Maintain HOLD, TP: RM3.53) [download report]
Gamuda’s 1HFY12
results beat both consensus and house expectations. This was mainly due to the
much faster than expected earnings recognition and margin expansion from the
construction of the Northern electrified double-tracking project (EDTP). There
were no performance surprises from the other divisions (property, water and
expressway concessions). However, we expect Gamuda’s construction pretax profit
(PBT) margin to decline from the current 12.4% (1HFY12 average) in coming
quarters as the Northern EDTP tapers off towards completion but bounce back when
the Sungai Buloh – Kajang (SBK) MRT tunnelling job goes into full swing in CY14.
Maintain HOLD with target price at RM3.53, based on sum-of-parts.
Other
reports
Other
Malaysian news
§
YTL Corp: Plans more
acquisitions, dividend increase
§
AirAsia:
May listing
for Thai AirAsia, Zooming in on 2 more Aseas countries
§
MAS-AirAsia: MyCC probe into share swap still ongoing
§
UMW Toyota Motor: Maintain
sales target
§
IGB:
In JV for
RM6bn megamall
§
Bandar
Raya Development:
Closer to
open tender
§
Cypark: FiT deal to
earn RM11m yearly
§
Ho
Hup: Court orders
to buy over minority stake in BJD
§
Bintai Kinden: Bags
Singapore
jobs
§
Key West: Acquires
Manjung Niaga for US$52.5m
§
Oil
& Gas:
Petronas,
Total to study potential of CO2 field
§
Oil
& Gas: OSV players
face stiff competition
§
Property:
Prasarana in
RM200m development plan for Dang Wangi station
Global
news
§
US:
Orders for
durable goods show sustained demand
§
US:
Unemployment
may drop to 6% by mid-2013, NY Fed study finds
§
Europe:
France’s 4Q growth
less than estimated versus year ago
§
Europe: French consumer confidence unexpectedly jumped in
March
§
UK: Economy shrinks more than first estimated on services
§
UK:
Britons see
disposable incomes plunge most since 1977
§
Australia:
Government
plans deeper spending cuts
§
Global:
Iran oil flow
slows, and price fears rise
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