Highlights
of the day
§
Economics (Quarterly
Economic Outlook): Second Quarter 2012: Still
cloudy today but clearer skies tomorrow. [download report]
The first
quarter saw important resolution to the European crisis. At the same time, US
statistics are showing encouraging signs. Growth issues in term of weak global
aggregate demand still linger however. Nevertheless, we expect clearer skies
from here on. We maintain our 2012 Malaysian real GDP growth forecast at 4%. We
maintain our mean inflation forecast at 2.7%. We also maintain our year-end
target for the USD/MYR at MYR2.95 to a dollar. Finally, we are modifying our OPR
outlook from at least 25bps cut to no cut by the end of the year.
§
Bumi Armada (Company
Update): Firing in all cylinders (Upgrade
from HOLD to BUY; TP:RM5.10).
[download report]
Our recent
meeting with Bumi Armada has strengthened our
conviction on the company’s prospects. Bumi Armada’s
growth potential of 32% net profit CAGR for FY12-FY14 is driven by expansion
from all of its operating segments. FPSO is expected to contribute 45-50% to its
EBIT from FY12 onwards, while the remaining would be from the OSV and T&I
segments. Upgrade our HOLD call to BUY with RM5.10 TP, 27x PE pegged against
FY12 EPS, representing +1SD of its historical PE in line with its strong growth.
Other
reports
Other
Malaysian news
§
Maybank: NIM to be compressed by
another 10bps
§
Maybank:
License to expand
§
Sime
Darby:
Property unit on track to achieve sales of RM2.4bn
§
UEM
Land:
To launch Nusajaya Gateway this year
§
TNB:
Manjung 4 power
plant to boost Janamanjung revenue
§
TNB:
To make first FiT payment next week
§
Tradewinds
Plantation:
Buys 60% stake in Retus
§
Selangor
Properties: Unit gets notices of land
acquisition
§
UMLand: Iskandar Investment in
talks for RM1.4bn project
§
Cypark Resources: Exploring
opportunities in Myanmar
§
Crest Builder-Detik Utuh JV: Bags Dang Wangi project
§
Malaysia
Pacific Corp:
Unit Oriental in project
buy-back
§
Property:
Penang to build
11,800 cheap homes
§
IPO:
Investment banks approach Astro on possible re-listing
Global
news
§
US:
Unemployment claims fall to
four-year low
§
US:
Economy grew at 3% annual rate in
4Q2011
§
US:
4Q2011 income trends up, boost for
spending
§
US:
House adopts Republican budget
calling for spending cuts
§
Europe:
German unemployment fell in March
amid economic resilience
§
Europe:
Economic confidence unexpectedly
fell in March
§
Europe:
One-year rescue boost to EUR940bn
is close to complete
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