News Bits | 3 August 2012

§  Malaysia Marine & Heavy Engineering (Results Review): 2H to be better than 1H, rich valuation (Maintain SELL, TP: RM4.44) [download report]

1HFY12 net profit of RM133m (-36% y-o-y) came in at 35-38% of our and consensus full-year forecasts. We leave our earnings forecast unchanged as we expect 2H2012 earnings to ramp up in progress billings from new projects.  Maintain SELL on MMHE but raised TP by 6% from RM4.21 to RM4.44 as we roll forward our 12-month TP valuation from 18x FY12 EPS to 18x FY13 EPS. The stock is trading at a hefty PE compared to its slow growth prospects, low order book replenishment and lower margins compared to peers.  (refer to report for details)

Other reports

§  Newz Bits [download report]

Other Malaysian news

§  Axiata: Celcom launches new WiFi hotspots

§  SapuraKencana: Wins RM50m Australian job

§  AirAsia: Batavia Air deal to comply with Indonesian rules

§  Media Prima: Expects revenues to stay solid

§  Eastern & Oriental: Plans RM1bn projects

§  Hibiscus: Raises RM210m for acquisitions

§  Hua Yang: Sees RM872m revenue from BUSI

§  George Kent: Confident of timely delivery

§  IPO: Pasukhas bids for more overseas jobs

§  Plantation: Refiners seek CPO quota clarification

Global news

§  US: Jobless claims in US climbed less than forecast

§  US: Orders to US factories unexpectedly declined in June

§  Europe: UK manufacturing slump deepens as export orders fall

§  Europe: Euro-area manufacturing output contracts for 12th month

§  China: Central bank to maintain ‘prudent’ monetary policy

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