News bits | 3 May 2012

Highlights of the day

§  Petronas Chemicals Group (Initiating Coverage): Surfing the crude oil wave (BUY, TP: RM7.69) [download report]

We initiate coverage on Petronas Chemicals Group Bhd (PCG), an integrated gas-based petrochemical producer, with a BUY call and target price of RM7.69 based on an implied FY12 PE of 15.1x. We like PCG for its robust 3-year EPS CAGR of 13.5%, superior margins, strong balance sheet (net cash) and decent dividend yields.

Other reports

§  Newz Bits [download report]

Other Malaysian news
§  MAS-AirAsia: Back in competition
§  TNB: New chief to be known today
§  YTL Power: Confirms 1Bestarinet project win
§  MMC: Malakoff acquires 40% of Bahrain plant
§  MBM Resources: Fixes rights issue at RM1.42
§  Yinson: To acquire more assets
§  Daya Materials: Bags RM270m deal, eyes fabrication yard
§  Menang Corp: Gets UiTM concession
§  Banking: Indonesia to unveil single shareholding cap
§  Media: Astro troubles with Lippo turn ugly
§  Oil & Gas: Five firms bid for oilfield jobs
§  Technology: Global chip sector on the upswing
§  Economy: Consumer confidence in Malaysia improves

Global news

§  US: Factory orders decrease on pullback in aircraft

§  US: Payroll survey signals jobs slowing
§  Europe: Unemployment rate rises to highest in almost 15 years
§  China: Manufacturing improvement signals growth rebound
§  Thailand: Bank of Thailand keeps key interest rate unchanged at 3.00%

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