News Bits | 27 April 2012

Highlights of the day

§  Genting Plantations (Company Update): FFB production set for steady growth (Downgrade to HOLD, TP: RM8.78) [download report]

We expect Genting Plantations’ (GenP) FFB production to grow by 8% and 13% in FY12 and FY13 based on their historical plantings, and we forecast GenP to plant some 12,000ha annually. This is possible as we estimate GenP’s unplanted land to be 75,000ha, predominantly in Indonesia. We upgrade our TP to RM8.78 implying 14.5x PE, 1.8x PB and 1.4% net dividend yield, but we downgrade our recommendation from Trading Buy to HOLD.

Other reports

§  Newz Bits [download report]

Other Malaysian news

§  CIMB: CIMB Niaga’s 1Q profit jumps 29%

§  Bumi Armada: Ananda pares down stake

§  IPO: Felda Global offers 2.2bn IPO shares

§  RHBCap-OSK: Merger believed to have received Bank Negara approval

§  Nestle: Sizable capex in Nestle’s pipeline

§  MAHB: KLIA passenger traffic hit by MAS, AirAsia route cuts

§  DRB-Hicom: Gets 98.6% of Proton

§  JT International: Battles illicit cigarette trade

§  Perdana Petroleum: Calls tender for Petra Energy

§  Ramunia: Tweaks utilisation of rights proceeds

§  TA Global: Buys Phuket resort for RM277m

§  Oil & Gas: Big spin-offs from Pengerang terminal project

§  Aviation: AirAsia dismisses ‘not using KLIA2’ talks

Global news

§  US: Labour market cools

§  US: Pending sales of existing homes increased 4.1% in March

§  Europe: Spain’s ratings cut by S&P on deficit

§  Europe: Eurozone economic confidence drops

§  China: Data show impact of global woes

§  Singapore: Production declines as electronics, drugs output drop

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