News Bits | 26 Sept 2012

Highlights of the day

§  Jaya Tiasa Holdings (Initiating Coverage): Poised for long term growth (HOLD, TP: RM2.56) [download report]

We initiate coverage on Jaya Tiasa with a HOLD recommendation and TP of RM2.56, implying a FY13 PE of 13.5x, P/B of 1.6x and net dividend yield of 1.5%. We like Jaya Tiasa for its young maturity profile, strong FFB production growth and more possible landbank expansion in the future.

 

§  Economics (Quarterly Economic Outlook): Fourth Quarter 2012: Not a bad year despite earlier pessimism [download report]

Amid weak global demand growth, domestic demand in Malaysia is likely to grow healthily as various civil engineering projects under the Economic Transformation Program are well underway. Electioneering by the incumbent government through increased government spending and transfer payments to positively affect private consumption may provide the bedrock for further economic growth. However, net export remains a major concern and this is the primary obstacle to overcome in 2012. Abroad, monetary policy has become increasingly expansive to combat economic quagmire as fiscal policy reaches its political limits. This may limit downside export growth risk for Malaysia. Finally, we maintain real 2012 GDP growth projection at 4.6%, our OPR forecast at 3.00% till the end of the year and maintain our inflation projection at 2.0% for 2012 on expected demand-pull inflation late in the year. We downgrade our USD/MYR forecast to MYR3.06 per USD from MYR2.95.

 

Other reports

§  Newz Bits [download report]

 

Other Malaysian news

§  CIMB Group: Decision on insurance JV stake this Saturday

§  Telekom: One Visa sues for RM221.5m

§  SapuraKencana: Unit wins Pearl oil contract

§  IJM: Scomi gives foothold in OGE

§  Fima: To buy more land in Indonesia

§  KKB Engineering: Obtains job extension

§  KAF-Seagroat: To buy 70% of Alliance Investment Management

§  Ho Wah Genting: Unit secures RM800m contracts

§  Hing Yiap: Shareholders approve Hing Yiap’s brand acquisition

§  Automotive: Perodua urges government to attract Japanese vendors

§  Steel: Stop dumping

 

Global news

§  US: Consumer confidence rises to seven-month high

§  US: Home prices rose more than forecast in July

§  Indonesia: Should boost spending if risks materialise

§  Thailand: Exports fall a third month as global demand cools

 

 

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