News Bits | 9 Nov 2012

Highlights of the day

§  AMMB Holdings (Results Review): 1HFY13: Within expectations (Maintain SELL, TP: RM6.25) [download report]

2QFY13 EPS growth of 7% y-o-y was in line with market expectations. Profit before provisions in 1HFY13 dropped 7% y-o-y, but the large drop in provisions gave profit a boost.  As net interest margin is expected to compress and provisions to normalise in subsequent quarters, we leave our earnings forecasts and target price of RM6.25 unchanged.  We maintain our SELL call as AMMB’s share price is above our target price which has already discounted 2013 earnings, leaving room for disappointment and presenting a downside in share price.

 

§  Economics (Industrial Production Index): September 2012: Production is up strongly after an August contraction [download report]

Malaysia’s industrial production index for September 2012 grew strongly by 4.9% y-o-y after contracting by 0.2% in August. The strong rebound was due to manufacturing growth as the external environment improved. Exports across Asia appeared to have grown better in general in September than it did in the previous month. We expect production to grow at a more moderated pace of 3.0% y-o-y in October.

 

Other reports

§  Sunway Bhd (Company Update): Right on target (Maintain BUY, TP: RM2.70) [download report]

§  Newz Bits [download report]

 

Other Malaysian news

§  Sime Darby: Musa retires as chairman

§  Berjaya Corp: To acquire shares in Atlan

§  Wah Seong: To acquire IJM unit

§  Scomi: Siew increases hold on Scomi Group

§  iCapital.biz: Laxey determined to get on icapital.biz board

§  Salcon: To venture into property development

§  Engtex: Unit buys land for RM19m

§  Encorp: Secures RM64m contract

§  Telco: MCMC shortlists three for DTTB

§  Economy: BNM keeps OPR at 3%

 

Global news

§  US: Record exports boost growth as trade gap falls

§  US: Jobless claims fall as storm starts to affect data

§  Europe: Greek aid payment call won’t be made next week

§  Europe: BOE halts bond purchases as officials focus on lending

§  China: PBOC’s Zhou says China’s economy improving as data due

§  Indonesia: Central bank holds key rate as growth withstands global risks

 

Visit ECM Libra at https://www.ecmlibra.com/ecmlsmy

Our on-line trading portal at www.ecmmoney.com