Highlights of the day
§ Malaysia
On 13 December 2011, we came out with a Malaysia Market Strategy report entitled “Delisting of PLUS to benefit others”. Since then, the big cap stocks with dividend yield that we highlighted have appreciated in share price. Given that their total increase in market cap of RM26.7bn is much higher compared to the RM9.1bn cash that was returned from the privatization of PLUS, this source of liquidity in pushing the FBMKLCI higher appears to have completed. While there remains excess global liquidity which could continue to take the FBMKLCI higher, this lends credence to our view that at close to 1600, the FBMKLCI is toppish.
§ WCT (4QFY11 Results): Within expectations (Maintain BUY, TP: RM3.07) [download report]
WCT’s full year FY11 net profit was spot-on with respect to both house and consensus expectations. Although the group’s FY11 results were disappointing, we remain optimistic that WCT, backed by RM5bn tenderbook, will do much better in securing new construction jobs in FY12, having secured 2 contracts worth RM631m back-to-back this year in just one month. Maintain BUY, with sum-of-parts (SOP) target price raised slightly to RM3.07 from RM3.02 previously, to account for the group’s net debt position as at end-FY11 which was better than what we expected.
Other reports
§ Newz Bits [download report]
§ Malayan Banking (2HCY11 Results): stronger showing than expected (Maintain HOLD, TP: RM8.25) [download report]
§ Axiata (4QFY11 Results): Dividend surprise! (Maintain HOLD, TP: RM5.19) [download report]
§ IOI Corporation (2QFY12 Results): Strong plantations performance (Downgrade from Trading Buy to HOLD, TP: RM4.64) [download report]
§ Media Prima (4QFY11 Results): High dividend yield! (Maintain HOLD, TP: RM2.35) [download report]
Other Malaysian news
§ MMC: Dishing out RM5bn power-plant deal to a consortium
§ SP Setia: Eyes RM60bn in development value
§ Berjaya Corp: Vincent Tan retires from Berjaya Corp
§ Green Packet: To invest RM300m capex in 2012
§ Hibiscus Petroleum: Holds EGM on March 21
§ Construction: Mudajaya, Eversendai win RM 1.4bn Tanjung Bin expansion works
§ Oil & Gas: Gas Malaysia
§ Oil & Gas: Petronas awards contract for LNG Train 9
§ Power: Ananda Krishnan mulls disposal of power portfolio
Global news
§ US: Jobless claims point to improving labor market
§ US: Home prices declined 2.4% in 4Q2011
§ Europe: IMF said to limit exposure to Greece
§ Europe: Greece
Visit ECM Libra at https://www.ecmlibra.com/ecmlsmy
Our on-line trading portal at www.ecmmoney.com
