Friday, July 6, 2012

News Bits | 6 July 2012

 Highlights of the day
§  IHH Healthcare (Initiating Coverage): Guardian of private healthcare (HOLD, TP: RM2.94) [download report]
IHH Healthcare Berhad (IHH) is the guardian of private healthcare focusing on markets in Asia with commanding market position specifically in Singapore, Malaysia and Turkey. We believe the listing will attract market attention considering that IHH is institutionalised with a list of well-known cornerstone investors as well as a strong likelihood of entering into the FBMKLCI in a fast track manner.  We initiate coverage on IHH with a Hold recommendation and TP of RM2.94 based on sum-of-parts.
§  Sime Darby (Quick Bits): Battersea deal completed (Maintain HOLD, TP: RM9.32) [download report]
Sime Darby together with SP Setia and the EPF have formed a 40:40:20 JV to jointly acquire and invest in the Battersea Power Station, London. The acquisition cost amounts to GBP400m (RM1,972m) and the estimated GDV for this project is GBP8bn (RM39.4bn) over the project span of 15 years. We make no changes to our earnings and we maintain our HOLD recommendation with a TP of RM9.32.
§  SP Setia (Quick Bits): Battersea deal closed (Maintain HOLD, TP: RM3.70) [download report]
SP Setia, together with Sime Darby Property Berhad and Kwasa Global Development (a wholly-owned company of EPF) have entered into an agreement to form a joint venture (JV) company for the purpose of acquiring the Battersea Power Station (BPS) for GBP400m (c.RM1.97bn). SP Setia and Sime Darby Property will each hold a 40% stake in the JV, while Kwasa will hold 20%. Based on SP Setia’s stake, the Group will have to fork out GBP160m for the acquisition. We make no changes to our earnings at this juncture. Following the new acquisition, our RNAV/share estimate (and target price) has increased by 3% to RM3.70.  Maintain HOLD.
Other reports
§  Newz Bits [download report]

Other Malaysian news
§  AirAsia: F&B segment to boost revenue
§  MAS: Expects to double digital sales this year
§  OSK: Won’t be a PN17 firm after stake sale
§  TA Enterprise: Plans to set up REIT
§  TA Global: Plan for new block of hotel rooms
§  MAHB: No reason for KLIA2 to cost RM5bn
§  Aviation: AirAsia and Jetstar beat SIA, Cathay
§  Economy: Investment boost for Sabah

Global news
§  US: Jobless claims fall as hiring tops estimates
§  US: ADP says companies added 176,000 workers in June
§  US: Service industries grew less than forecast in June
§  Europe: ECB move to zero rates
§  Europe: BOE restarts QE as euro crisis threatens to prolong slump
§  Europe: Germany’s factory orders unexpectedly rebounded in May
§  China: Central bank cuts key interest rates
§  Japan: BOJ raises economic view of all regions, first time since 2009


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