News Bits | 26 Nov 2012

Highlights of the day

§  UMW Holdings (Results Review): 3QFY12: Exceeding expectations (Upgrade from HOLD to  BUY, TP: RM11.40) [download report]

9MFY12 net profit of RM743m exceeded expectations, as it made up 96% and 83% of house and consensus full-year estimates, respectively. 3QFY12 earnings grew more than doubled y-o-y, mainly on higher vehicle sales and better contribution across all business segments (excluding Equipment). As UMW Toyota’s 10M12 sales of 86,664 units have already reached 95% of our 2012 projection, we raised our FY12-14F sales forecast by 7-9% resulting in an upgrade in earnings by 28-46% and increase in our SOP/share valuation to RM11.40 from RM9.70. Upgraded our recommendation to BUY from Hold.

 

§  Economics (Consumer Price Index): October 2012: Inflation is stable at approximately 1.3%.[download report]

Malaysia’s consumer price index in October grew at the same pace as it did in September, which was 1.3% y-o-y. Core inflation was stable at 1.1% y-o-y, also unchanged from the previous month. The effect of RON97 price hike continued to be felt but transport inflation moderated slightly nonetheless. As there has been no major development affecting prices in November so far, we project headline and core inflation to remain unchanged at 1.3% y-o-y and 1.1% y-o-y in November.

 

Other reports

§  WCT (Quick Bits): Bonus shares issue and free warrants (Maintain BUY, TP: RM3.20) [download report]

§  Newz Bits [download report]

 

Other Malaysian news

§  KPJ Healthcare: Eyes stake in Thai operator

§  Genting Malaysia: Works on resort to start soon

§  MMC-Gamuda: Invests RM400m

§  RHB Capital: Hopes to seal Indonesian deal by June

§  MAHB: Join RM4.9bn race for Stanstead deal

§  MRCB: Penang Central take-off in 2013

§  Sealink International: Wins RM113m worth of contracts

§  I-Berhad: To launch residential incubator

§  SILK Holdings: Under no compulsion to sell toll road

§  SILK Holdings: Plans highway expansion

§  IPO: Malakoff comeback in 2Q

 

Global news

§  Europe: Catalan pro-independence parties win vote in defiance of Rajoy

§  China: Wage gains trimmed by weaker profit

§  Taiwan: GDP grew less than initially estimated last quarter

 

 

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