Highlights of the day
§
Hartalega
Holdings (Results Review): FY12
results came in within expectations (Maintain HOLD, TP: RM7.78) [download
report]
Hartalega’s FY Mar 2012 net profit came in within ours and market
expectations. We like Hartalega because: (i) its “highly automated production
processes” model is moving from ‘good’ to ‘great’ as they are head and
shoulders above peers in terms of margins, solid improvement in production
capacity, and lower costs; (ii) offers superior quality nitrile gloves through
product innovation; and (iii) its nitrile gloves segment is booming. However,
the stock is trading at 13.4x CY12 and 12.2x CY13 EPS, compared to average net
profit growth of 8%. Maintain HOLD with TP RM7.78 based on 13x CY12 EPS of 59.8
sen, 18% above its historical average due to its superior margins.
§
Plantation
Average monthly FFB yields in 1Q12 dropped 22%
compared with the average drop of 12%, and yields registered in 1Q12 were below
the 5-year average. Recent climate indicators point towards neutral weather
conditions in the near term, but some climate models have suggested that El
Nino conditions may appear in 2H2012. Soybean supplies estimates for South America has also seen further cuts by Oil World due
to further crop losses, making latest estimates 15% less than what was
originally forecasted in Oct/Nov 2011. Maintain NEUTRAL.
Other reports
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SapuraKencana
Petroleum (Quick Bits): Kencana
bags RM460m Serendah platform job (Maintain HOLD, TP: RM2.52) [download
report]
Other Malaysian news
§ CIMB: Expands into the Philippines
§ DiGi:
Sees mobile data advancing to 35% of revenue
§
TM: Plans
RM2.6bn capex in 2012; have not decide role in digital TV plan
§ AirAsia: AirAsia X
passengers rise to 690,000 in 1Q
§ MMC: To relist Malakoff
next year
§ MAS: Troubles worsen
§ BIMB: Still in talks with Bank Muamalat Indonesia
§ Perisai
Petroleum: Buys US$208m rig from PPL
Shipyard
§ Formis
Resources: Divests subsidiaries for RM102m
§ Felda
Global: To reveal foreign partners next week
§ Plantation
§ Economy: BNM’s
international reserves at RM416.9bn
§ Economy: BNM’s
inflation forecast stays at 2-3% despite minimum wage
Global news
§ US
§ US
§ Europe : Greek
leaders given bailout ultimatum as Syriza begins talks
§ Europe : German
industrial output rose three times more than forecast
§ South Korea
§ Australia
§ Myanmar : IMF
says Myanmar
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