Highlights of the day
§
MISC
(Results Review): Looking
beyond 1QFY12 (Upgrade from Hold to TRADING BUY, TP: RM4.75) [download
report]
1QFY12 results came
in below expectations with a net loss of RM465m compared to our and consensus
full-year net profit forecast of RM725m and RM977m, respectively. We downgrade
our FY12 and FY13 net profit by 13% and 7%, respectively, to reflect the weaker
performance of MISC’s petroleum segment due to lower-than-expected charter
rates and high bunker cost. Correspondingly, our TP is reduced to RM4.75 from
RM5.70 based on 1.0x P/BV (from 1.2x previously), to account for concerns on
structural change due to declining demand for crude oil in the US, as the
country is the single largest importer of oil. At current price, the stock
offers a 20.6% upside. As such we upgrade our call from Hold to Trading Buy.
§
Hong
Leong Bank (Results Review): 3QFY12:
In line with consensus (Maintain HOLD, TP: RM11.50) [download
report]
3QFY12 results were
in line with market expectations but better than we expected. We are thus raising our FY12 EPS forecast by
4% but maintaining our FY13 EPS forecast as we believe that the factors behind
the 3QFY12 results only affect our FY12 and not our FY13 forecasts. We are also maintaining our target price and
HOLD recommendation.
Other reports
§ Media Prima (Results Review):
1QFY12: An
exceptional weak quarter (Maintain HOLD, TP: RM2.35) [download
report]
§ SapuraKencana Petroleum
(Company Update): New merged-entity listed (Maintain HOLD, TP: RM2.52) [download
report]
Other Malaysian news
§ WCT: Hopes to secure
RM1bn jobs
§
KPJ Healthcare: Proposal to acquire a parcel of vacant commercial
land
§ AirAsia: Surprises
investors
§ JCY International: Second RM40m dividend?
§ KFC
& QSR: EPF to take big stake in SPV in the buyout
§ SEGi: Offer letter
delivered
§ HSL: Wins RM73m
worth of new contracts
§ Hektar
REIT: Gets SC nod to up fund size
§ Petra
Global news
§ US: Fed
officials keep door open on easing, eye risks
§ US
§ US: Industrial
production rises 1.1%
§ Europe: Greece
§ Europe : ECB
stops lending to some Greek banks
§ Europe: Spain debt fight intensifies as Valencia
§ Europe : Inflation
slowed in April, March exports declined
§ UK
§ Japan
§
Japan
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