Highlights of the day
§
Boustead
Holdings (Initiating Coverage): Mixed
prospects, saving grace is 6.2% dividend yield (HOLD, TP: RM4.65) [download
report]
Boustead Holdings is a GLC-linked conglomerate with a
well-diversified portfolio which includes businesses in plantations, property,
finance & investment, trading & manufacturing, heavy industries and
pharmaceutical. We believe prospects are bound to be mixed due to the different
business models employed its diverse segments. However, its saving grace is the
Group’s current dividend yield of 6.2%.
We initiate coverage on Boustead Holdings with a Hold recommendation and
RNAV-based target price of RM4.65.
§
IJM
Corporation (Company Update): Drilling
into the Scomi stake deal (Maintain BUY, TP: RM5.32) [download
report]
We attended a briefing by IJM Corp on the rationale
behind its proposed RM149m acquisition of up to 25% equity stake in oil and gas
services provider Scomi Group Bhd (SGB). While IJM Corp remains a BUY, we
downgrade our sum-of-parts target price to RM5.32 from RM6.36 previously
assuming a worse-case scenario write-off of its SGB investment cost and
introduce a 15% holding company discount to reflect the negative investor
perception towards IJM Corp’s entry into SGB.
Other reports
Other Malaysian news
§
Maybank: Ayudhya stake not sold to Maybank
§
AMMB: Completes Kurnia Insurans purchase
§
KSK: Completes sale of Kurnia Insurans for RM1.63bn
§ AirAsia: To seek collaboration with Malindo Airways
§
Crest Builder: Eyes Langat 2 project
§ BRDB: Shares suspended from 4 October
§ Muhibbah: Unit secure RM241m contracts
§ SILK
Holdings: Buys 2 AHTS vessels for RM241m
§
Ireka Corp: Eyeing new MRT jobs
§
Majuperak: Unit in groundwater project with South Korean firm
§ Tricubes: To be delisted on Monday
Global news
§ US: Sales
of new homes stay close to
two-year high
§ US: MBA
Mortgage Applications Index climbed 2.8% last week
§ Europe: IMF,
EU clash over Greece
§ Singapore
Our on-line
trading portal at www.ecmmoney.com