News bits | 9 April 2012

Highlights of the day

§  Hartalega Holdings (Quick Bits): Embarking on a mega expansion (Maintain HOLD, TP:RM7.82) [download report]

Hartalega is embarking on a massive capacity expansion consisting of 70 new production lines. The RM1.5bn expansion will take place over the duration of 8 years (2013-2021). We have yet to factor in any earnings contribution from this project which we expect to start contributing in FY15. The stock is currently trading at 13x CY12 and 12x CY13 EPS, compared to an average net profit growth of 8%. Recommend a HOLD with TP RM7.82 based on 13x CY12 EPS of 60.2 sen, 18% above its historical average due to its superior margins.

Other reports

§  Newz Bits [download report]

Other Malaysian news

§  Sime Darby: Plans 11th township

§  Gamuda, MMC: To speed up MRT contract awards to the start of 3QCY12

§  SP Setia: Enters Indonesia in regional expansion

§  MBSB: Extends home financing

§  Yinson: To build Vietnam warehouse

§  LBS Bina: To finally exit China

§  Scomi Engineering: Hopeful in Chennai

§  Construction: Invensys-led group tipped to win Ampang LRT job

§  Construction: Government still keen on high-speed rail link

§  IPO: Koperasi Permodalan Felda back in the game?

Global news

§  US: Consumer credit rose less than forecast in February

§  US: Employment increase trails most-pessimistic forecasts

§  South Korea: Producer prices rise at slowest pace in two years

§  Global: Japan, China to ‘consult closely’ on support for IMF

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