FBM 1607.88
-6.44 pts( -0.4%) Volume
964.2m Value RM1.27b
1)The KLSE continued it's dismal run, extending losses to
it's 4th consecutive day on thin trading, despite slightly firmer regionals. Debutant Hiap Huat Holdings Bhd was most actively traded,
registering a respectable 25% gain over it's IPO price of 20s in the Ace
market, after earlier reaching a high of 37s. Market breadth was still very
much negative, with losers overwhelmed gainers 447:225. Futures closed 1605 pts
( 2.88 pts discount).
2)Heavyweights: SUPERMX +3% RM2.04, UMW+1.6% RM10.10,
TENAGA +0.7% RM6.94, BAT-4.1% RM55.58, PETGAS-4% RM18.14, SKPETRO-3.5% RM2.75,
MISC-1.7% RM4.06, PCHEM-1.6% RM6.10.
3) DBT: HHHCORP 5m @ RM0.22 ( 12% below closing price),
SYSTECH 3m @ RM0.10.
4) Situationals;
MAHB -2.6% RM5.34 : after it was reported that the group
has entered in the running for Stansted Airport, London's third hub. The Sunday
Telegraph understands that an approach has been made by MAHB, although there
were already 4 existing bidders in the first round. It is known that Stansted's
owner Heathrow has been seeking another suitor to revive the RM4.92b bidding
process. The sale process is being managed by Deutche Bank & ING, and the
sale is expected in the first half of 2013.
Sealink +4.1% RM0.385 : after having secured new
contracts totalling RM113m, consisting of contracts for the sale of 2 offshore
support vessels (OSV) & long-term
charter of 4 vessels. The contracts for the 2 OSV are worth RM42m while the
long-term charters RM71m. The OSVs are expected to be delivered by year end
& early next year.
5) Coastal: 9mths 09/12
Rev+14% RM570.7m Net-35% RM90.2m EPS 18.67s Div
9.7s Results
trails consensus by 18%, RM145.7m
For Q3 yoy, Rev from the Shipbuilding & Shiprepair
Div was higher by 60%, mainly attributable to more vessel deliveries in the
current quarter, 7 units in contrast to 5 units. The division's PBT margin of
15% was however lower than the 33% recorded LY as a result narrower margins
derived from the sale of vessels & losses from foreign exchange.
Rev from the Vessel Chartering Div was more than two-fold
that of LY, due to new charter contracts secured. The PBT margin of 72% was
better than the margin of 21% recorded LY. The better showing was due to
short-term chartering income earned from the charter of OSV as well as greater
gain on disposal of used vessels. Qoq, PBT was fairly consistent, a marginal
-2% despite higher Rev reported, due to foreign exchange losses incurred.
Margin compression due to normalization of rates,
unpredictability of oil prices are main headwinds faced by the company. To
address these issues, co is looking to focus more on deepwater vessels which
sees higher demand and diversifying into offshore structure fabrication as well
as upstream segment of the industry. Trades at attractive PER 6x but stk has run
up some 10% recently, may pause for some profit taking.
6) Mkt - continue to drift on light volume leading into
UMNO General Assembly which kicks off tomorrow. All eyes on this event which
may provide some leads on the political front. KLCI closed at crucial 200D SMA
support lvl of 1607 pts, technically oversold as MACD, RSI 21.
Continue to advocate buying on dips to position ahead of
year end/Jan effect rally. Final week for results season to dictate direction
of individual stks.
