Highlights of the day
While the leading indicator suggests the Malaysian
economy is set to grow, the coincident indicator is providing hints of economic
slowdown. The leading index in June grew slower at 2.0% y-o-y after 2.3% growth
in May. The more interesting signals came from the coincident index as growth
dropped drastically to 1.7% y-o-y from 3.2% growth in May. This may run
parallel to our projection that the real GDP growth for 2Q2012 may grow slower
than 1Q. We estimate that the Malaysian economy may have grown by 4.1% y-o-y in
2Q2012 after growing 4.7% in 1Q.
§
AMMB
Holdings (Results Review): 1QFY13:
Sell into good results (Downgrade from HOLD to SELL, TP: RM6.25) [download report]
1QFY13 EPS growth of 2% y-o-y was 9% above market expectations. PBT before provisions dropped 8% y-o-y, but
recovery of bad debt gave a boost. As
net interest margins are expected to compress and provisioning normalise in
subsequent quarters, we maintain our EPS forecasts but raise our target price
from RM5.70 to RM6.25 as we roll forward our valuation from 2012 to 2013. Nevertheless, we are downgrading our call
from HOLD to SELL as AMMB’s share price is above our revised target price which
has already discounted 2013 earnings, leaving room for disappointment and share
price downside.
§
Media
Prima (Results Review): 2QFY12:
Expecting a better 2H (Maintain HOLD, TP: RM2.52) [download
report]
Media Prima’s 1HFY12 adjusted net profit of RM77.6m made up 40% of house
and consensus full year estimates respectively. The results are in line as
2HFY12 would typically be stronger backed by festivities such as Aidilfitri and
Christmas. 1HFY12 revenue recorded positive growth as the shortfall caused by a
negative growth in 1QFY12 was offset by 2QFY12’s stronger numbers. A single
interim dividend of 3.0 sen was declared—a payout ratio of c.44% for 1HFY12. We
maintain HOLD but raised our target price from RM2.35 to RM2.52 as we roll
forward our 12-month valuation from 14x FY12 EPS to 14x FY13 EPS.
Other reports
Other Malaysian news
§
Construction: 3
MRT station packages awarded
§ WCT: Expects work on RM4bn
project to kick off in 2014
§
MMC: Hires
bankers for Malakoff IPO
§ Hartalega:
Capex on NGC won’t affect the dividend policy
§ Media
Prima: In early talks with Worldview Broadcasting Channel
§ Hibiscus:
Proposes acquisition of Aussie assets
§
IPO: Astro
Malaysia
§
Property: Affordable
housing aim; efforts to curb speculation
§ Utilities: Must chip in to build infrastructure
Global news
§ US
§ US
§ US
§ Europe : Economy
contracted in 2Q
§ Europe : EU banking plans call for ECB to share power
§
China
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