Highlights of the day
§
Felda
Global Ventures (Company Update): Looking
for a better 2H (Maintain HOLD, TP: RM4.85) [download
report]
ECM Libra hosted a corporate presentation by Felda
Global Ventures yesterday which highlighted the group’s current developments
such as replanting targets, future strategies including new plantings in Indonesia , 2H FFB production, overseas ventures
in Myanmar
§
Top
Glove Corporation (Quick Bits): Low 4Q12
tax rate explained, strong headwinds ahead (Maintain SELL, TP: RM4.62) [download
report]
We attended Top Glove’s 4QFY12 results briefing yesterday, which highlighted
the following: (i) 4QFY12’s low effective tax rate; (ii) capex plans; and (iii)
rubber plantation to drain cashflow over the next several years due to
long-term gestation period. We maintain our FY13F and FY14F earnings as we
assume a lower-than-expected sales volume and strong headwinds emanating from
higher production costs. The shift in demand to nitrile gloves over the last
two years has also led to a glut and potential price war in the latex glove
segment. Top Glove is also facing higher production costs from the minimum wage
policy to be effective on 1 Jan 2013 and higher natural gas prices. Maintain SELL with a target price of RM4.62
based on CY13 EPS of 25.7 sen. (refer to report for
details)
Other reports
Other Malaysian news
§
Green Packet: Looking
to sell P1
§ Media: Astro, TM and ABN scoring for EPL
§
DiGi: To
invest in more stores
§ Malaysia
Airports: Expects higher passenger growth at Penang
airport next year
§ DRB-Hicom:
Revival plan for Proton
§
Glomac: Hints at more land acquisitions by year end
§
Scomi: Asset sale still on, after cancellation of ROS
§ Sarawak
Cable: Plans to buy over Trenergy
§
Encorp: Launches
project in Nusajaya
§
Plantation : China
§
Economy: Malaysia
§
Economy: Slower
3Q growth likely
Global news
§ US
§ US
§ US: Confidence
among homebuilders climbs for a sixth month
§ Europe: Germany
§ China
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