FBM30 1650.09
-3.69points (-0.22%) Volume
1,563mil Value 1,402mil
1) Recent record high has encouraged investors to take
profit ahead of the festive long weekend as KLCI fell to a low of 1648.03
(-5.75pts) before mark ups of Tenaga and PCHEM push index above 1650pts.
Regionals ended mixed as slowing global growth concern was offset by Chinese
Premier Wen comment on possible monetary policy. Penny stocks dominated volume
with significant gains in INGENS+30%, ASUPREM+12%, UTOPIA+15%. Market breadth was positive with gainers leading
decliners 432:332. Futures closed 1650.5pts (0.5point premium).
2) Heavyweights: IOICORP-1.91% RM5.13, PETGAS-2.11%
RM19.50, CIMB-0.38% RM7.88, PBBANK-0.28% RM14.38, YTL-1% RM1.91, MAXIS+1.60%
RM6.98, MAYBANK+0.34% RM8.94, TM+0.85% RM5.95
3) DBT: CSL 10.1mil @ RM1.25 (8.7% premium), MYEG 7.8mil
@ RM0.70 (8.5% discount)
4) Situationals:
KNM+24% RM0.705: Pre-tax profit surged to RM21.74 million
in the 2Q compared to RM1.81 million in the same period last year.
The company attributed the better performance to higher job recognition on
stronger order book and better margin contribution from projects. On prospect,
KNM said its Asia and Oceanic segment has recorded slightly better order intake
for the first two quarters. Existing strong order book will sustain the
European segment to remain profitable for the remaining two quarters however
business performance for the Americas' segment remain challenging.
5) BUMI ARMADA
1H JUNE 2012 Tover
-6.5% RM719.7m Net +27.6%
RM181.6m EPS 6.2sen
33% below
cons(f) RM539.3m
Its FPSO segment grew 32% YOY mainly from the 2 FPSO secured
in 2Q 2011 but was unable to prevent lower group turnover primarily due to the
variation orders from Sepat FSO which has since been completed. Vessel
utilization was improved to 82% but down 3% if including its joint controlled
entities.
Operational wise the company remained efficient with
EBITDA margins above 60%, debt/annualised EBITDA less than 3x, debt/equity
below 1 underpinned by strong operating performance KPIs - strong HSSE
performance, 99% uptime for FPSOs, net profit for the period of RM181.6 million
and a total order backlog (including options) of RM10.6 billion.
In the 2Q FPSO business was running at 99% uptime; there
was additional new tonnage in our OSVfleet (Armada Tuah 107, 108 and 301) and
the start of contribution from the USD200 million Lukoil contract for our T
& I business.
It continues to bid for projects in Asia, West Africa and
Latin America and with projected forward demand for FPSOs remaining strong in
their key markets it continues to strive to be the fourth largest global owner
and operator of FPSOs.
BUY on weakness as recent sell off due to the lack of
major contract win particularly for FPSOs which they have guided the investment
community of 1-2 each year. They remain an efficient integrated operator and we
expect orderbook replenishment to eventually happen.
6) Market - Distinct rotational plays into high beta
laggards today illustrated by the +ve market breath but -ve index close.
Construction remains the big laggard sector which could see bargin hunting
ahead of Budget 2013 in late Sept. Our favourites in this sector include
Sunway, IJM, WCT.
