News Bits | 1 June 2012

Highlights of the day

§  Maxis (Results Review): 1QFY12: Within expectations (Maintain HOLD, TP: RM5.69) [download report]

By excluding the last mile broadband tax incentive of c.RM16m, Maxis 1QFY12 adjusted net profit of RM556m came in within house and market expectations. Although Maxis offers a 6.5% dividend yield, the highest yield among other telco players, given its limited expected total return, we maintain HOLD call with our DDM-derived (cost of equity: 7.2%, growth: 1.5%) target price of RM5.69.).

§  SP Setia (Company Update): Growth on track (HOLD, TP: RM3.60) [download report]

SP Setia is set to achieve this year sales target of RM4bn driven by developments in Setia Eco Alam, Setia Business Park 1 & 2, the Kuala Lumpur Eco City, as well as projects located in Penang and overseas. Although 1HFY12 sales of RM1.8bn made up 45% of target, we believe this is achievable through new launches in 2HFY12. We resume coverage on SP Setia with a Hold call. Following revisions made to our forecasts, we lower our RNAV-based target price to RM3.60 from RM3.90, previously.

Other reports

§  Economics (Money and Banking): April 2012: A stable, boring month [download report]

§  KPJ Healthcare (Results Review): 1QFY12 came in within expectations, rich valuations (Maintain HOLD, TP: RM4.96) [download report]

§  Newz Bits [download report]

Other Malaysian news

§  Maybank, CIMB: Can breathe a sigh of relief

§  DiGi: Rolls out ‘smart’ plan

§  SapuraKencana: Seadrill sells 6% stake

§  Affin Bank: Awaits clear decision by Indonesian regulators

§  MAS: Reviews vendor contracts to slash costs

§  MBSB: Inks RM120m debt deal for Pantai Plaza project

§  Maybulk: To expand fleet despite weak market

§  Globaltec: To expand in plantations

§  SDB: Buys land in Sungai Buloh

§  TSM: To be suspended soon

§  SYF Resources: Hii is now substantial shareholder

§  IPO: Felda Global’s retail price set at RM4.55 per share

§  IPO: IHH bumiputera tranch at RM2.85

§  Oil & Gas: Several parties keen on importing LNG

Global news

§  US: Economy in expanded less than previously estimated

§  US: Companies added fewer workers than forecast in May

§  US: Jobless claims increase

§  US: Business activity unexpectedly grew at slower pace

§  Europe: Spain hasn’t asked for IMF Aid, no help planned

§  Europe: Spain says it has months to raise bank-bailout funds

§  Europe: Euro-area inflation slows more than economists forecast

§  Japan: Industrial production rises less than anticipated

§  Philippines: Growth beats estimates as Aquino boosts spending

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