Monday, May 28, 2012

News Bits | 28 May 2012


Highlights of the day
§  UEM Land Holdings (Results Review): 1QFY12: Slow sales deter q-o-q growth (Upgrade from HOLD to BUY, TP: RM2.25) [download report]
UEM Land’s (UEML) net profit for 1QFY12 increased threefold y-o-y to RM54.2m backed by strong revenue growth of 62%. The latter was attributable to contribution from its property developments. 1QFY12 net profit, however was below expectations, making up only 13% and 15% of our and consensus estimates, respectively. Sales achieved for the quarter was RM290m, c.10% of UEML’s FY12 sales target of RM3bn, and 18% of ours. Although lower than expected, management is positive that their sales target is achievable. We make no changes to our estimates on the premise that the bulk of sales would usually come in 2Q-4Q12. Upgrade from Hold to BUY as share price has fallen and currently presents an upside of 15%.

Other reports
§  Newz Bits [download report]

Other Malaysian news
§  IOI Corp: Will relist property arm, but no timeframe set yet
§  SP Setia: RM1bn a year for new land
§  MPHB: Not planning to go big in real estate
§  Affin Holdings: Adopting dividend policy to pay minimum 50% of net profit
§  MAS: Government to keep close watch
§  BRDB: Asset disposal plan still on
§  Permaju Industries: Unit gets Sabah Mydin hypermart offer letter
§  Samchem: Eyeing regional expansion, says CEO
§  IPO: Felda Global eyes top 5 spot
§  IPO: Globaltec to make Main Market debut on 31 May
§  Automotive: BMW to expand local production, launches new 4S centre
§  Biotechnology: BiotechCorp aims big
§  Building materials: Iron-ore players in the dark
§  Building materials: Players propose more duties on steel products
§  Healthcare: IFC plans to invest in Malaysia's Khazanah healthcare arm
§  Mining: Vale to tender out up to US$400m more jobs
§  Power: Possible changes in renewable energy industry

Global news
§  US: Consumer sentiment rises to highest since 2007
§  Europe: Greek pro-bailout New Democracy Party leads in 6 opinion polls
§  Europe: Spain bails out its third-largest bank
§  China: China industrial companies’ profit growth declined 2.2% in April
§  Thailand: Exports unexpectedly fall as global demand weakens
§  Singapore: Production unexpectedly declines on electronics, drugs
§  Vietnam: Reports trade gap as import gain signals improved demand


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