§
Sunway
Bhd (Results Review): 1QFY12:
Slow quarter (Upgrade from HOLD to BUY, TP: RM2.65) [download
report]
1QFY12 was a slow quarter for Sunway Bhd as most of the Group’s divisions
reported lower y-o-y earnings. Net profit of RM64.4m came in lower than our and
market expectations, making up 13% and 18% of our and consensus’ estimates,
respectively. Revenue dropped by 2% y-o-y due to low billings and slow sales.
We view the Group’s sluggish performance was simply weighed down by seasonal
effect. Our numbers and target price remain unchanged, but we upgrade our Hold
call to a BUY as Sunway’s share price has depreciated. The stock is cheaply
trading at FY12F PE of 7.0x.
§ IJM Corporation (Results
Review): 4QFY12: Record profit delivered (Maintain BUY, TP: RM6.36) [download
report]
IJM’s FY12 results came in broadly within
expectations, delivering a record high adjusted net profit of RM433.8m, up 15%
y-o-y on the back of topline growth of 21% annually. Operating profit
contribution from construction is expected to catch up with the other
divisions, reaching c.15% by FY13 from 8% currently, as key projects in its
outstanding RM4.3bn orderbook enter full swing. We remain sanguine on the
prospects of IJM securing its portion of West Coast Expressway infrastructure
works (c.RM4.2bn) once the concession agreement is duly signed. While we make
no changes to our FY13 – FY14 EPS forecast, we reduce our sum-of-parts target
price for IJM to RM6.36 from RM7.02
previously, after imputing current forward peer average P/E ratios into the
property development and plantation SOP components and FY13 – FY14 PATMI, lower
by 15% and 5% than our previous assumptions. Maintain BUY..
Other reports
§
Lafarge
Malayan Cement (Results Review): 1QFY12:
Down due to seasonal factors (Maintain BUY, TP: RM7.97) [download
report]
§ Genting Plantations
(Results Review): 1QFY12: Below expectations (Maintain HOLD, TP: RM8.78) [download
report]
§ Star Publications (Company
Update): Defensive play in media sector (Maintain HOLD, TP: RM3.34) [download
report]
Other Malaysian news
§ YTL
Corp: To pay dividends in shares, sell warrants
§ Maybank: In talks to keep
BII stake
§ Hong Leong Bank: To raise funds for expansion
§ MMC
Corp: To submit KTMB study earliest in July
§ KPJ: To buy more
hospitals in the region
§ Hap
Seng: Doubles capex
§ IJM
Land
§ Top-Glove: To automate
plants
Global news
§ US: Consumer
confidence falls to four-month low
§ US: Home
prices fell at slower pace in year ended March
§ Europe: Germany
§ China
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