Market Roundup 310112

FBM30 1521.29, +7.74 points (+0.51%), Vol 1,782mil, Value 2,181mil       

1) Positive comments by Greek prime minister that significant progress has been made in talks with private-sector creditors gave investors fresh hope that a solution was in sight to settle the crisis, driving the regional bourses to recover earlier losses, including KLCI. Index dipped below the 1510 level in morning session, before month-end closing action marked the index to close at day's high. Domestically, investors are waiting for the outcome from BNM's meeting later today with mkt expecting no change in the OPR rate holding it steady at 3%. Market breadth was healthy with gainers edging losers 415:394. 

2) Heavyweights: GENTING+2% RM11.12, GENM+4.1% RM4.04, PETGAS+3.2% RM15.68, MAXIS+2.7% RM5.71, SIME+0.6% RM9.14, YTL+2% RM1.50, TENAGA+0.5% RM6.00, DIGI+0.5% RM3.96, AXIATA+1.7% RM4.67, HLBANK+1.2% RM11.36.

3) DBT: BJTOTO 5mil @ RM4.27, PROTON 3mil @ RM5.40  

4) Situationals: 

TENAGA+0.5% RM6.00: Shares were down most of the session before closing +ve during auction after news reports said the problem of compensation for the burning of distillates following the severe gas shortage has not been resolved yet. This was despite the three major stakeholders - TNB, Petroliam Nasional Bhd and the govt - having agreed to share the RM3bn incurred between Jan 2010 and October 2011. On another note, CEO Datuk Seri Che Khalib Mohd Noh will be calling it quits when his contract expires in June this year after heading TNB for seven years. The board has accepted Che Khalib's request and has begun finding a replacement. 

AXIATA-1.7% RM4.67: Shares fell to the lowest since Oct 4, on concerns about the regulatory approvals for its outdoor structures and regional risks. On Monday, Axiata said it received another two-year extension from the SC to get the local authorities' approval for its outdoor structures. The SC gave it until Jan 29, 2014 to get the approvals for the outdoor structures, which were part of the conditions for its listing on Bursa.

5) PPB Group: With regards the proposed acquisition by Waikari SB, a wholly owned subsidiary of FFM Bhd (which in turn is a 80% subsidiary of PPB) of 20% interest in Yihai Kerry (Anyang) Foodstuff Industries Co Ltd, PPB announced that Waikari had on Jan 30 2012 received notification that the relevant PRC regulatory authorities have issued the Certificate of Approval for Establishment of Enterprises with Foreign Investment in the PRC, and the Business Licence, on Jan 9 & Jan 12 2012 respectively; +ve and expected. Together with further proposed interest in other selected subsidiaries of Wilmar in the PRC, will enhance PPB's distribution network of it's produce there.

6) Mkt - buying momentum to continue to be concentrated in small-mid cap names. Any resolution from Greece is a welcomed relief for the mkt to trend higher. 

Morning Call 310112

FLOWS;

BUYS : UEMLand, DRBHicom, GentingMsia, TM

SELLS : Axiata, MRCB, AirAsia

Technical Stock Alert;

Dayang - Volume build up seen in past two trading days as the stock continues to consolidate around the RM1.90 levels after trending up from RM1.80 in early Jan. Track for a breakout above RM2.00 for a possible RM2.20 mid term target.

Yinson - Stock was sold down to a low of RM1.90 yesterday after touching a recent high of RM2.14 ahead of its ex date on the 3/2/2012 for a 3 Rights : 2 Shares issue at RM1.00 (25sen to be capitalized from its share premium and retained earnings). BUY

Stock of the Day

MMC Corp - (RM2.75)

Name    30-Dec  latest  YTD Change

DRB     2.04      2.78      36.27%

POS     2.59      2.87      10.81%

TWSPLNT 4.34      4.88      12.44%

ZELAN   0.37      0.42      13.51%

MMC     2.77      2.80       1.08%

TWS    10.04     10.06       0.20%

BERNAS  3.12      3.10      -0.64%

- Major recent underperformer in the Syed Mokhtar stable.

- Possible short term catalyst to ignite excitement in the stock could come from the unlocking of value in the listing of Gas Malaysia and possibly Malakoff and Johor Port at a later stage. MMC's 41.8% stake in Gas Msia could potentially be worth at least RM1.3bn.

- The MMC/Gamuda JV is the leading contender to secure the KL MRT tunneling project, potentially worth RM8bn.

- Recently the group has also been linked to a bid for KTMB.

- Buy for a breakout above RM3.00 for an immediate target of RM3.50.

Newz Bits 310112

Highlights of the day

§         Malayan Banking (Company Update): A mathematical analysis of its Dividend Reinvestment Plan (Maintain HOLD, TP: RM7.80) [download report]

Our mathematical analysis of Maybank’s dividend reinvestment plan (DRP) shows that with 90% of shareholders opting to reinvest their dividends, the beneficiaries are actually the shareholders who choose to receive their dividends in cash.  Their dividend yield remains an attractive 5.9% p.a. and the growth potential of their shareholding improves from 3.8% to 6.9% p.a. thanks to the reinvestment from the other 90% of shareholders.  We are reducing our target price for Maybank from RM8.00 to RM7.80 due to EPS dilution from its DRP, and lowering our net dividend yield forecast from 6.1% to 4.0% p.a. which is a truer reflection.  HOLD maintained.

§         Public Bank (4QFY11 Results): In line with consensus (Maintain HOLD, TP: RM13.00) [download report]

FY11 results were within market expectations, with EPS growth of 14% on the back of a 10% growth in operating profit and a drop in provisions.  Loan and deposit growth of 13-14% offset lower net interest margins, and Public Bank is still targeting similar growth rates in 2012. However, its FY11 dividend payout ratio of 48% was lower than FY10’s 52%. We have reduced our EPS forecasts marginally by 1-3%. Although we have raised our target price to RM13.00 per share, we are maintaining a HOLD as total expected return is zero.

Other reports

§         Newz Bits [download report]

Other Malaysian news

§         Tenaga: Che Khalib quits TNB

§         AirAsia: Flew 30m passengers in 2011

§         MAHB: Proposes private placement of up to 110m shares

§         DRB-Hicom: In Volkswagen charm offensive

§         Proton: New management team likely following takeover

§         E&O: SC committee shot down general offer

§         Tebrau Teguh: KPRJ to launch GO on Tebrau Teguh

§         Ekovest: In share swap deal with Wira Kristal

§         Temasek Formation: Gets nod for merger

§         Economy: Government to sell RM90bn worth of bonds

§         Economy: More liberalisation measures from BNM

§         Plantation: Delay in CPO quotas

Global news

§         US: Consumer spending stalls as Americans lift savings

§         US: Fed says business-loan demand climbs as economy accelerates

§         Europe: Leaders agree rescue fund, 25 join fiscal pact

§         Europe: Confidence increases less than estimated

§         South Korea: Industrial output rises slower at 2.8% y-o-y

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

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

Market Roundup 300112

FBM30 1513.55, -7.35 points (-0.48%), Volume 2,307.5mil, Value 1,841.5mil

1) KLCI gave away morning gains with losses accelerating after midday as investors took profits ahead of European summit on the region's debt crisis and after the U.S. economy expanded less than forecasted. China also failed to deliver a forecasted reduction in bank reserve requirements. Selling pressure of GENTING, TENAGA, IOICORP after midday saw index dropping and closed near its low of 1512.03 (-8.87pts). Market breadth managed to stay positive with gainers leading losers 460:387. Futures closed 1502 (11.5 points discount).

2) Heavyweights: GENTING-2.33% RM10.90, TENAGA-2.13% RM5.97, IOICORP-1.28% RM5.40, MAXIS-2.46% RM5.56, HLBANK-1.71% RM11.50, YTL-2% RM1.47, PBBANK+0.6% RM13.52, CIMB+0.58% RM6.89

3) DBT: MYEG 20mil @ RM0.65 (3.3% PUC), PROTON 5mil @ RM5.40, AIRASIA 5mil @ RM3.57.

4) Situationals:

MAYBULK-13.2% RM2.30: Maybulk which has risen 72% ytd plunged 13% after the company said it is not aware of any reasons or any corporate exercise that may have contributed to the increase in share price and high trading volume of Maybulk shares in response to Bursa UMA query.

E&O+4.3% RM1.70: Share price reached RM1.75, near its highest level (RM1.78) on new revelations stemming from an online portal relating to Sime Darby's acquisition of a 30% stake in the company.

5) PBB: FY12/11 Rev+16% RM12.8b Net+14% RM3.48b EPS 99.5s Div 48s, Results in line with cons RM3.45b

For 12 months yoy, the higher Net was mainly due to higher net interest & net income from Islamic banking +8.6%, while net fee/comm income +8.4%. In addition, impairment allowances on loans had shown a drop of 9.9%, despite the 1.5% collection impairment allowances set aside for the strong loan growth. These were partially offset by the higher other operating expenses +5.2%. Total loans grew by 13.5% ( mainly arising from property financing, passenger vehicles & lending to SMEs), total deposit +13.3%, impaired loan ratio further improved to 0.9% from 1.1% LY. The group's capital position remained healthy, with tier-1 capital & RWCR at 10.1% & 15.3% respectively. PBT by operating segments - Retail ops +17.5%, HP -5.5% ( lower interest margin & higher loan impairment allowances), Corporate lending +16.3%, Treasury & Capital market +20%, Investment bank +2%, Fund management +17.5% & Overseas ops -4.8% (foreign exchange movement & lower net interest income). Qoq, PBT -2%, Net -2.4%. These were mainly due to certain loan recoveries in the preceding quarter which were non-recurring in nature. Group declared a 2nd interim dividend of 28s, bringing total dividend for FY12/2011 to 48sen or 48% net profits (10% lower than cons 53.1s).

The bank's numbers are indicative of an overall industry slowdown with lower loan growth and contracting margins. Prefer for CIMB for core bank exposure.

6) Market - Range bound on index with interest remaining on situational mid caps, Trading buy on MMC, an under performing company under the Syed Mokhtar stable with short term catalyst possibly coming from the listing of subsidiary, Gas Malaysia.

Newz Bits 300112

Reports

§         Newz Bits [download report]

Malaysian news

§         IJM Corp, AZRB: Awaiting letter of award for MRT project

§         Berjaya Land: Mulling hotel divestment?

§         Bintulu Port: In talks on Samalaju deal

§         Lingui, Glenealy: Samling Global proposes privatisation

§         Kumpulan Perangsang Selangor: Cancels dolomite mineral project

§         Tebrau Teguh: To acquire Danga Bay

§         Leong Hup: To be delisted soon

§         Eng Kah: Partners Cosway China

§         The Media Shoppe, Theta Edge: Schools project worth RM350m

§         Banking: More measures to attract regional players

§         Building materials: More players expected to produce hot-rolled coils

§         Power: 47 potential bidders for new power plants

§         Shipping: Baltic Dry Index plunges to 3-year low

Global news

§         US: Growth trails forecasts as Americans curb spending

§         US: Michigan Consumer Sentiment Index rises to 75 in January

§         US: Obama Pushes ‘Buffett Rule’ in populist talk to house Democrats

§         Europe: EU leaders to agree on permanent bailout fund, balanced budget

§         Europe: Greece, bankers expect debt-swap deal this week

§         Europe: Italian, Spanish ratings cut two notches by Fitch on crisis

§         Japan: Consumer spending revives even as exports slide

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

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

Morning Commentary 300112

Good morning,

1) Lingui/Glenealy: Samling Strategic Corp SB (SSC) is proposing to privatize unit Samling Global Ltd (SGL) and in turn to privatize Lingui Developments Bhd and associate company Glenealy Plantations (M) Bhd. Lingui & Gleanealy, in separate statements to Bursa, said that the privatization exercise would be conditional, among other things, upon the approval of the independent shareholders of SGL. SSC has indicated that it expects to propose an offer price of RM1.63 per share in respect of the Lingui privatization and RM7.50 per share in respect of the Gleanealy privatization. It also said that the offer prices were indicative only, was non-binding and may be subject to variation. Lingui & Gleanealy are controlled by the diversified Miri-based Samling Group headed by TS Yaw Teck Seng. Trading in shares of Lingui & Gleanealy has been suspended since Jan 20 at the companies' request (at RM1.36 & RM6.55 respectively ); +ve if true, with offer at premiums of 20% & 14% over last traded prices.

2) IJM/AZRB: Both IJM & AZRB have said they are awaiting a formal LOA from MRT Corp for 2 elevated packages of the MRT Sungai Buloh-Kajang line. In a statement to Bursa, IJM said it's subsidiary IJM Construction SB had last December submitted a tender for the project & would make an announcement upon receipt of the LOA. AZRB made a similar disclosure to the exchange. The announcements were made in response to a statement from MRT Corp last Thursday that the 2 parties had been appointed the main contractors for package V5 & V6 respectively of the MRT construction works worth RM974m & RM764m; +ve. Packages V5 & V6 are among the 8 elevated packages to be awarded in 2012. The award should pave the way for more active newsflow on projects in the 1st half of the year.

3) Tebrau: Danga Bay SB (DBSB), the master developer of the Danga Bay waterfront projects in Johor, is to be injected into Tebrau Teguh Bhd, say sources. The exercise will transform Tebrau Teguh, which is majority owned by Johor State investment arm Kumpulan Prasarana Rakyat Johor (KPRJ), into the biggest owner & developer of the sea-fronting projects. It is said that the majority owner of DBSB, Datuk Lim Kang Hoo, will drive the development. The transaction is said to be satisfied via the issuance of new shares in Tebrau Teguh to Lim. KPRJ will still be the largest shareholder and Lim, the second largest; +ve if true. If the deal goes through, Tebrau will become a serious contender in the development of Iskandar Malaysia, competing with GLC, UEM Land. Counter suspended today.

4) Mkt: mixed trading with lower liners outperforming on privatization and M&A stories.

Newz Bits 270112

Highlights of the day

§         IJM Corp (Quick Bits): IJM's first win for CY12 (Maintain BUY, TP: RM7.02) [download report]

The Business Times reported that IJM Corp was appointed as the main contractor for the elevated V5 package from Taman Maluri to Plaza Phoenix station of Sungai Buloh – Kajang Mass Rapid Transit (MRT) project worth RM974.0m. This, together with the imminent award of the c.RM7.1bn West Coast Expressway (IJM’s effective share at c.RM4bn) in 2QCY12, is expected to double its outstanding orderbook to RM8.8bn. Maintain BUY.

Other reports

§         Newz Bits [download report]

Other Malaysian news

§         IJM Corp, Ahmad Zaki Resources: Win RM1.74bn MRT jobs

§         Kumpulan Europlus: To build RM7bn West Coast Highway

§         AirAsia: Acts on fare disclosure

§         AirAsia: Plans aircraft transfer to associates

§         MAHB: Eyes opportunities in China, Indonesia

§         Lafarge: Shares change hands in internal restructuring

§         MAS: Exploring JV with Qantas to set up a KL-based premium airline

§         QSR, KFC: Set to call for EGM

§         Alam Maritim: Bags RM115m engineering job

§         Automotive: Tighter financing

§         Consumer: Malaysia raises sugar subsidies as election draws near

§         Telecommunications: U Mobile inks deal with Ericsson

Global news

§         US: First-time jobless claims increase, displaying seasonal volatility

§         US: Durable goods data points to economic momentum

§         US: Sales of new homes unexpectedly decline in December

§         US: Index of leading economic indicators rises for third month

§         Singapore: Production rebounds on surge in pharmaceutical output

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

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

Newz Bits 260112

Reports

§         Newz Bits [download report]

Malaysian news

§         Sime Darby: Acquires Indonesian firm

§         DRB-Hicom: To start work on RM8bn Johor property project

§         Genting Bhd: Sells 100% stake in Genting Oil Natuna and Sanyen Oil

§         KNM Group: KMK Power in exclusive deal with Poplar

§         Can-One: Completes purchase of 32.9% stake in Kian Joo

§         Hunza Properties: Launching RM650m worth of projects

§         Healthcare: Khazanah eyes US$3bn IHH listing

§         Construction: MRT Corp to call for tenders worth RM15bn

Global news

§         US: Fed sets price goal as forecast for inflation declines below 2%

§         US: Fed weighing more bond buying as rate pledge extended to 2014

§         US: Home prices fell 1.8% y-o-y in November

§         US: Contracts to buy homes near 19-month high

§         US: MBA mortgage applications index decreased 5% last week

§         Europe: Business confidence jumps to highest in five months

§         Europe: Germany backs ECB’s opposition to taking loss on Greek debt

§         South Korea: Economy expands 0.4% as export outlook dims

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

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

Newz Bits 250112

Highlights of the day

§         Economy (Leading Economic Indicator): November 2011: The clearest sign of economic cooling yet. [download report]

The November leading indicator for Malaysia presents a weary outlook for the domestic economy. The leading indicator grew by 0.7% y-o-y only, the slowest growth rate since July 2009. This development should be read together with the inflation rate and the industrial production index figure; all suggest that the domestic economic growth is cooling down.

Other reports

§         Newz Bits [download report]

Other Malaysian news

§         SP Setia: Revised takeover offer

§         Genting: AWE and Genting unit in deal worth RM120m

§         RHBCap: Hopeful of completing OSK deal by April

§         AirAsia: Deploys new customer service system

§         Multi-Purpose: To sell hotel to pare down debt

§         CMMT: Higher FY11 pre-tax profit

§         Scomi Engineering: JV signs Brazilian monorail contract

§         DBE Resources: Three-way fight for DBE Gurney?

§         Vastalux: PBJV Group in back-door listing

§         Automotive: Perodua says sales slowed in January

§         Healthcare: Khazanah IHH acquired 60% stake in Turkey Acibadem

§         Semiconductor: Chip sector recovering in 2Q

§         Economy: Bank Negara reserves at RM423.5bn

Global news

§         US: Growth trails forecasts as consumers retrench

§         US: Sales of existing homes end 2011 on high note

§         Europe: Greek creditors urge quick deal after Eurozone rejection

§         Europe: EU hits Iran with oil ban, asset freeze over nuclear effort

§         Japan: BOJ cuts growth forecasts for FY2012, keeps policy unchanged

§         Japan: Fiscal pressure rises as tax increase not enough

§         India: Central bank unexpectedly cuts reserve ratio

§         Global: IMF says Europe crisis threatens to derail global economy

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

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

Newz Bits 200112

Highlights of the day

§         Samchem Holdings (Stock Idea): “Bond” with “free warrants” on Indonesia and Vietnam (BUY, TP: RM1.10) [download report]

Samchem Holdings (Samchem) is a leading chemical trading company in Malaysia, with an attractive forecast net dividend yield of 6% p.a. We recommend a BUY with 55% upside to our target price of RM1.10/share. At this price, investors will still be getting a yield of 3.9% p.a. in line with fixed deposit rates, while getting free exposure to Indonesia and Vietnam where sales are already surging.

Other reports

§         Newz Bits [download report]

Other Malaysian news

§         DiGi: 4Q net profit up 19% on tax incentives

§         CIMB: Thai unit’s profit rises by 58.8%

§         AirAsia: Sued by Australian watchdog

§         Pavilion REIT: To spend RM13.5m on fashion avenue

§         KFC Holdings: MCCM not giving up

§         OldTown: To build factory for RM36.7m

§         Tambun Indah: Proposes rights issue, warrants

§         The Media Shoppe: Teams up with LTH unit for school project bid

§         DBE Gurney: In talks with CI shareholder

§         Aviation: MyCC still waiting for MAS, AirAsia response

§         Consumer: Ekuinas expands F&B Portfolio

§         Plantation: CPO prices likely to remain firm in 2012

§         Plantation: Felda Global business model must change

§         Economy: MIER expects 3.7% GDP growth in 2012

Global news

§         US: Jobless claims fall to lowest since 2008

§         US: Consumer prices little changed as fuel costs fall

§         US: Housing starts dropped more than forecast in December

§         US: Philadelphia-area manufacturing increased to 7.3 in January

§         Europe: Spain passes bond test

§         Europe: France enjoys strong bond demand despite downgrade

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

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

Morning Commentary 200112

Good morning,

1) AirAsia: A consumer watchdog in Australia, The Australian Competition & Consumer Commission (ACCC) has submitted documents to the Australian Federal Court, alleging that the budget airline did not disclose the full fares for it's flights out of Australia. It claimed that the fares displayed on AirAsia's online website disclose only part of the total. The company is currently seeking legal advice & will not comment further at this time, AirAsia said in a media statement. It added that the allegations relate to specific routes from Australia that pass through KL. Group has been operating in Australia since 2007 without any previous claims; -ve. This suit comes on the back of AirAsia announcing that it's long haul arm AirAsia-X will commence selling tickets for it's KL-Sydney route, with flights to Sydney set to commence in April. Meanwhile,on the domestic front, AirAsia & MAS has been given a month to provide the Malaysia Competition Commission (MyCC) with the relevent documents in relation to the Commission's probe on the share-swap agreement between AirAsia & MAS.

2) DBE Gurney: In a reply to Bursa's query on unusual market activity, DBE Gurney said the company has plans to undertake a private placement and the talks with a CI Holding shareholder was at a preliminary stage now. The purpose of the placement of new shares was to raise fresh working capital. Datuk Johari Ghani, who sold Permanis SB to Japan's Asahi Group Holdings for RM820m cash last year, is the single largest shareholder of CI Holdings. Johari, the MD of CI Holdings, holds a 30.5% stake in the company. According to him, CI Holdings is on the prowl for new business after divesting Permanis. This has sparked speculation that CI Holdings may be keen on poultry breeder DBE Gurney. A Chinese media reported yesterday, which quoted sources, that CI Holdings would pay RM40.4m (equivalent to 20s per share) to acquire a 30% equity stake in DBE Gurney; Neutral, DBE was the most actively traded stock yesterday on the Bursa, with price surging 23%.

3) KFC: Media reported that The Malay Chamber of Commerce (MCCM) has not given up it's quest to gain control of the KFC fast food business in Malaysia. After the rejection of it's offer to acquire Kulim Bhd's 54% shareholding in QSR Brands, the Chamber is now said to be eyeing Lembaga Tabung Haji's (LTH) 23% stake in KFC Holdings. MCCM president urged LTH to oppose the proposed sale of KFC's assets & liabilities. Alternatively, he said LTH should sell it's KFC shares to the Chamber at RM4.10 each. KFC ended trading at RM3.82 yesterday. LTH has refused to comment on matter at this time.

4) Mkt: maintain rangebound trade with firm undertone on relatively lower volume in view of the long CNY holidays weekend, accumulate CIMB, MAS, MHB.

Market Roundup 190112

FBM30 1516.81, -0.57 points (-0.04%), Volume 1,936mil, Value 1,618mil

1) Index gave up early gains as it drifted south throughout the day, bucking the positive regional trendsas investors chose to stay sidelined ahead of long wkend. KLCI closed relatively unchanged as some buying during auction period on TM+1.5%, MMCCORP+1.5%, YTL+0.7%, BJToto +2% sent the index to close off-lows. TECH (+2.6%) sector was the biggest gainer (JCY+2.7%, UNISEM+5.6%, MPI+12.9%) on positive outlook by the analysts, amid hefty gains in active lower liner stocks: DBE+22.7%, TMS+155.6%, NEXTNAT+9.1%, INGENS+6.3%. Market breadth was flattish with mixed bias: gainers at parity with losers 378:370. Futures closed off lows 1522 (5 points premium).

2) Heavyweights: GENTING-1.6% RM10.82, MAYBANK-1% RM8.20, AXIATA-0.6% RM4.84, AIRASIA-0.5% RM3.63, KLK-0.2% RM24.78, IOICORP+0.7% RM5.39, TM+1.5% RM4.82, PCHEM+0.6% RM6.68, MAXIS+0.7% RM5.63.

3) DBT: IPMUDA 5.7mil @ RM0.54, OLDTOWN 4.8mil @ RM1.25, MASTEEL 3mil @ RM1.13.

4) Situationals:

Smartag+6% RM0.265: Shares rose after company said it will provide its Smartrack Technology for Brunei's Halal traceability project, enabling consumers to trace halal products in the sultanate. Smartag said it had inked a memorandum of collaboration with John Harith Technology Sdn Bhd where the latter would use its Smartrack solutions for the project. Under the project, John Harith will be developing the halal traceability software application on top of Smartrack, thus making Smartrack the engine for the project.

HELP+2.7% RM1.54: Shares saw gains in thin volume after it announced plans to set up a private primary and secondary international school in Subang but concerns about the growing competition from other players restrained strong buying interest. HELP announced it was expanding its education business which would see it investing RM20mil to set up the school with the capacity for more than 3,000 students. The first phase will open in September 2012 with an initial intake of 500 to 600 students.

5) Digi: FY 12/11 Rev+10% RM5.96b Net+6% RM1.25b EPS 16.13s Div 17.56s

Rev in-line, Net trails cons RM1.45b by 14%, Dividend in-line.

For Q4 yoy, Rev +8.1% achieved predominantly by growth in service revenue while handset sales was slightly lower. Service revenue came on the back of sequential growth in voice (+0.63% v 3Q +2%)& data (+5% v 3Q +10.4%)revenue.The slowdown in mobile broadband was due to a conscious decision to control growth & reduce excess usage of the network. Qoq PAT +35% from tax incentive on mobile broadband network facilities whilst EBITDA +2.8% qoq to RM728m & EBITDA margin rose to 47.1% (Q3: 46.6%). Key drivers were higher revenue & continued good cost management. Digi added 303k new customers in Q4, bringing total customers to 9.9m (of which 5.2m are mobile internet users). Group declared a 4th dividend of net 6.5s per share, taking total dividend for year to 17.5s ( in line with cons estm of 17.8s), yield 4.5%.

Management guidance for 2012: mid-high single digit rev growth, capex RM700-750m (2011 RM610m)

Comments: Hold-prefer TM as trades at cheaper EV/EBITDA of 5.6x (v Digi's EV/EBITDA 11x) with more attractive div yield 5.6%

6) Mkt - continue with muted trading amidst a tight range with 1500pts providing support. External factors will provide lead: Spain and France auctioning 1st LT bonds tonight amidst stabilization in yields since S&P downgrade and talks of China easing lending curbs on larger banks and weighing plans to relax capital requirements to provide stability in mkts.