Highlights of the day
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Gamuda
(Results Review): 1QFY13:
Record-breaking 1Q results (Upgrade from HOLD to BUY, TP: RM3.97) [download
report]
Gamuda’s 1QFY13 net profit of RM145m came in within
expectations. Construction PBT grew by 29% y-o-y while property division PBT
grew by 10% y-o-y. Due to the potential for job wins in FY13 e.g. MRT Line
2&3, Gemas-JB Southern Double Tracking Project and Langat 2 water treatment
plant, collectively worth in excess of RM10bn, we assume an orderbook
replenishment of RM2bn annually for FY14-15. Correspondingly, our FY14 EPS
estimates increases by 1.3% from 30.4 sen to 30.8 sen. We base our construction
division valuation on 13x average FY13-14 EPS estimates. Thus, our SOP-based
target price is increased to RM3.97 from RM3.47. Upgrade from HOLD to BUY..
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Top
Glove Corporation (Results Review): 1QFY13
came in within our but below market (Maintain SELL, TP: RM4.62) [download
report]
1Q FYE Aug 2013 reported net profit of RM57.5m (+83% y-o-y; -9.5% q-o-q)
appears to be above our expectation. However, excluding forex loss and fair
value gain on forex contracts, 1QFY13 net profit of RM45 (+1.5% y-o-y; -34%
q-o-q) came in within our expectation but below consensus full year net profit
forecast of RM222m. We maintain our FY13 and FY14 earnings forecasts as we
assume a slower-than-expected volume sales and headwinds emanating from higher
production costs from higher natural gas prices and minimum wage policy to be
effective 1 Jan 2013. Furthermore,
feedstock latex price is expected to move upwards in 1Q CY2013 due to the low
production period. The stock is trading
at 22x FY13 EPS compared to historical average of 18x. Maintain SELL with a target price of RM4.62
based on 18x CY13 EPS of 25.7 sen.
Other reports
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Axiata
(Quick Bits): M&A
makes Axiata No.2 in Cambodia
Other Malaysian news
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Genting Group: In makeover of UK
§ Astro, Felda Global: To replace AirAsia, MHB on
FBM KLCI
§ UEM Land
§ KNM: Forms O&G
JV with HMS
§ Petra
§ KUB: Unit signed MoU with Sutracom for RM50m palm mill
§ Jaks Resources: To half stake in Vietnam
§ O & G: Petronas awards PSC to three party alliance
§ Investment: Iskandar Investment mulls asset sales
Global news
§
US
§ US
§ US: Jobless claims fall to nine-week low of
343,000
§ US
§ South
Korea: Bank
of Korea
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