§ MISC (Company Update): Lacks catalysts, better long term prospects in LNG segment (Maintain HOLD, TP: RM5.73) [download report]
We came back from MISC company visit feeling less sanguine about prospects over the medium term but positive over the long run. MISC excitement in the long run is expected to come from the LNG transportation business via its parent Petronas’ JV with Progress Energy to explore and develop production of large natural gas (LNG) of which MISC is expected to be the shipper. However, over the medium-term, the petroleum and chemical tanker market is in a tough operating environment hit by depressed charter rates due to oversupply of vessels and stubbornly high bunker cost. We maintain HOLD with a RM5.73 target price based on 1.2 P/B (multiple is below its historical average).
Other reports
§ Newz Bits [download report]
Other Malaysian news
§ SapuraCrest: Confirmed JV with Seadrill for the Brazilian job
§ Sime Darby: Close to sealing fruitful South Korean deal
§ Axiata: Unit signs deal with Broadway Media
§ Tenaga Nasional: Not raising stake in Integrax
§ AMMB: Indonesian subsidiary gets investment manager license
§ Petronas Chemicals: Upbeat on good demand
§ KEuro: To buy 15.8% of West Coast Expressway, up stake to 80%
§ Tanjung Offshore: An M&A target
§ Masteel: Aims for JB-Woodlands train service by end-2013
§ IPO: Felda settlers at crossroads
§ Automotive: Revised policy rollout in 2 months
§ Automotive: Lending rules hurting car sales
§ Banking: Banks get cautious
Global news
§ US
§ US: Leading indicators point to sustained growth
§ US: Payroll vote gives congress nine-month breather on tax decisions
§ Europe: ECB said to negotiate with Greece
§ Singapore
§ China
§ Global: Japan , China to help Europe solve crisis via IMF
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