Highlights of the day
§
CIMB
Group Holdings (Results Review): 2QFY12:
Just catching up with market expectations (Downgrade from Hold to Sell, TP:
RM7.80) [download
report]
2QFY12 results caught up with market expectations
after a slow 1QFY12. PBT before
provisions grew 18% y-o-y in 1HFY12, boosted by a 22% jump in non-interest
income. Higher provisions lowered PBT
growth to 12% y-o-y. A lower interim
dividend was proposed while awaiting clarity on Bank Negara’s new capital
framework, but we still assume a dividend payout ratio of 50% for the
full-year. We maintain our EPS forecasts
but raise our target price from RM7.00 to RM7.80 as we roll forward our
valuation from 2012 to 2013.
Nevertheless, we are downgrading our call from HOLD to SELL as CIMB’s
share price is above our revised target price which has already discounted 2013
earnings, leaving room for disappointment and share price downside. (refer to report for
details)
§
WCT
(Results Review): 2QFY12:
Earnings led by property development (Maintain Buy, TP: RM3.20) [download
report]
WCT’s 1HFY12 results came in below market expectations, mainly because
of the slow progress made on the group’s construction jobs in the Middle East . However, this was offset by a strong yearly
growth in the group’s property EBIT in 1HFY12, boosted by sales from new
launches at 1Medini Residences and Bandar Parklands. An interim single tier
3.75 sen dividend was declared for 2QFY12. Reiterate our BUY call on the stock
with sum-of-parts target price of RM3.20. (refer to report for
details)
Other reports
§ Tan Chong Motors (Results
Review): 2QFY12: Not fully recovered (Maintain Hold, TP: RM4.16) [download
report]
Other reports
Other Malaysian news
§
AMMB: Not
keen on buying banks outside Malaysia
§ AMMB: Unlikely for ANZ
to pare downs stake
§ Multi-Purpose: To revamp financial services, investments ops
§
Parkson: Parkson Retail Asia to open
maiden store in Yangon
§
DRB-Hicom: Gets
green light for talks on insurance assets sale
§ MCIL: To float travel
business
§
TH Heavy
Engineering: A step closer to exiting PN17
§
Yinson: All
set for US$737m contract
§ George Kent: Gives RM51m bank
guarantee
§ Banking: Better access to banking services
Global news
§ US: Factory
output in climbs as prices remain tame
§ US: July
consumer prices unchanged as pricing power wanes
§ Europe: Spain
§ Europe : BOE
drops reference to rate cut as it considers policy options
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