Highlights of the day
§
Public
Bank (Results Review): 2QFY12:
In line with consensus (Maintain HOLD, TP: RM14.50) [download
report]
1HFY12 results were within market expectations, with
EPS growth of 11% on the back of a 2% growth in operating profit and a drop in
provisions. Loan and deposit growth of
13% and 12% respectively were offset by lower net interest margins which
continue to remain under pressure. We
are maintaining our EPS forecasts which translate into moderate EPS growth of
9% in FY12 and 11% in FY13. However, as
we enter the 2H2012, we are rolling forward our 12-month target price valuation
by pegging an unchanged P/E of 12x on 2013 EPS from 2012 EPS previously. As a result, we are raising our target price
from RM13.00 to RM14.50 per share. We
maintain a HOLD recommendation and Public Bank is one of our preferred banking
stocks for its defensiveness and relatively stronger loan growth momentum.
§
DiGi.Com
(Results Review): 2QFY12:
Within house expectation (Maintain HOLD, TP: RM4.05) [download
report]
DiGi’s 1HFY12 results came in within expectation, accounting for 49% of
our full year estimates. Noteworthy, 1HFY12 core net profit growth of 14% y-o-y
was due to higher service revenue and recognition of last mile broadband tax
incentives. The Group’s normalized PBT grew 7% y-o-y. A second interim net DPS
of 5.9 sen was declared, bringing YTD net DPS to 11.8 sen which implies a
payout ratio of 142%. Maintain HOLD on its decent dividend yield and net cash
position which provides room for further capital management initiatives.
Other reports
Other Malaysian news
§ Building Materials: Cement prices to go up?
§ IHH: Poised for rapid growth
§ AirAsia: Wants out
§ Faber: In the dark
§ Inari:
To venture into optoelectronics segment
§ Construction:
MTD ACPI, Ekovest bag highway expansion
jobs
§ Iskandar
Malaysia
§ Media: At least 6 bidders
for digital TV broadcasting deal
§ Utility:
PAAB snubs offer for JV
Global news
§ Europe: Spain
§ Europe: Germany , Netherlands
§ Singapore
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