Highlights of the day
§
Tan
Chong Motors (Results Review): 3QFY12:
Lower-than-expected (Upgrade from Hold to BUY, TP: RM5.00) [download
report]
Tan Chong’s 9MFY12 results came in lower-than-expected,
as net profit of RM108m only made up 53% of house and 54% of consensus
estimates. 3QFY12 revenue rose marginally by 4% y-o-y to RM938m on higher motor
vehicle sales, while net profit dropped
significantly by 40% y-o-y to RM33m as stiffer competition and higher
promotional and marketing costs squeezed margins. We have made adjustments to
our FY12 earnings projection to account for the slower vehicle sales. We
lowered FY12 earnings by 13% to RM177m, but increased FY13F-14F by 10-28%, backed
by the overwhelming response for the Nissan Almera and future model launches.
Rolling forward our DCF valuation to FY13, we set our target price at RM5.00,
which presents a 13% upside against current price, calling for an upgrade in
our Hold rating to Buy.
§
Maxis
(Results Review): 3QFY12:
Within house expectation (Upgrade from Sell to HOLD, TP: RM5.69) [download
report]
Maxis 9MFY12 adjusted net profit of RM1.57bn (+2% y-o-y) came in within
house but marginally below market expectation. Its 3QFY12 adjusted net profit
dropped by 16% y-o-y and q-o-q due to a lower EBITDA margin of 47.6% arising
from higher expenses of outright devices’ sales and higher operating costs,
coupled with higher tax rate that was due to non-deductible expenses. Since we
our SELL recommendation on Maxis (10 Sep 2012), its share price has depreciated
by c.6%. This presents a limited downside of 6.3% based on our TP of RM5.69,
warranting an upgrade in our SELL
recommendation to HOLD.
Other reports
§ Parkson Holdings (Results
Review): 1QFY13 results came in below expectations (Upgrade from Sell to HOLD, TP:
RM4.35) [download
report]
§ UEM Land
§ Sunway Bhd (Results
Review): 3QFY12: Performance on track (Maintain BUY, TP: RM2.70) [download
report]
§ IJM Corporation (Results
Review): 2QFY13: Results in line (Maintain BUY, TP: RM5.63) [download
report]
§ MISC (Results Review): 3QFY12: Hit by provision in heavy
engineering (Maintain HOLD, TP: RM4.60) [download
report]
§ Genting Plantations
(Results Review): 3QFY12: Severely below expectations (Maintain HOLD, TP: RM7.74) [download
report]
§ IHH Healthcare (Results
Review): 9MFY12: Within house but below consensus (Maintain HOLD, TP: RM2.94) [download
report]
Other Malaysian news
§ CIMB: Widens investment banking presence abroad
§ CIMB:
Four suitors to have submitted prices for CIMB Aviva bids
§ Bumi
Armada: Buys ship for RM88m
§ Malaysia Airports: Maldives
§ S
P Setia: Chalks up RM2.5bn sales for KL Eco City
§ DRB-Hicom: Wants to improve Lotus
§ Media
Prima: Plans notes programme
§ Scomi Group: Shah Hakim buys 21.65m warrants
§ Tiger Synergy: Abdul Azim a major
investors
Global news
§ US: Builders sell fewer new homes than
forecast
§ Brazil
§ Thailand: Bank of Thailand
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