FBMKLCI
1776.16 +9.03 pts
(+0.51%) Volume 2,579m
Value RM2,753b
1) The KLCI bounced back to close above its first support
level (1772pts) after a brief profit taking over the last 3 trading days. The
local market was largely inline with the bullish regional market with Nikkei
advancing behind the weakening of the yen. On the local market, properties
index +3.48% outshined other sectors lead by UEMLAND +9.2% after it posted a
200% gain in 1Q yoy net profit followed by MAHSING +7.3%, E&O +5.7%, and
HUAYANG +10.6%. Market breadth was
positive with gainers stomping losers 633 : 239. Futures closed 1773.5 (3pts
discount)
2) Heavyweights: UEMLAND +9.28% RM3.65, TENAGA +1.19%
RM8.45, CIMB +0.83% RM8.48, GENTING +1.37% RM10.30, PCHEM +1.38% RM6.57,
MAYBANK +0.58% RM10.10, AMBANK +0.96% RM7.32, DIGI +0.64% RM4.67.
3) DBT : WINSUN 43mil @ RM0.12 (14.5% of PUC), PARKSON
7.8mil @ RM3.84 (0.71% PUC).
4) Situational;
DAYANG+3.87% RM5.09 - Dayang Enterprise has received a
letter of award from Petronas Carigali for the provision of hook-up,
commissioning and topside major maintenance services for five years effective
21 May 2013. The value of the contract is not disclosed. Estimated value of the
contract is about RM1bil.
5) COASTAL
1Q Mar 2013 Tover
-28% RM168.9m Net +1.3% RM31.1m EPS 6.4sen
8% below cons (f) RM134.7m
The group made a slight increase in earnings over 1Q 2012
despite a drop in revenue due to improved operating margins from the
shipbuilding division. The division registered revenues of RM164.9m in the
current qtr with a total of 4 vessels delivered vs 7 vessels in 1Q 2012. The
division PBT margin hit 18% vs 14% YOY from higher margins on sale of vessels.
The charter biz however experienced a loss before tax of RM1.2m despite higher
margins owing to loss on forex transactions and impairement loss on financial
assets.
The company expects demand for OSVs to grow especially
for more sophisticated OSV and the push for younger and more environmentally
friendly vessels by regulators.
It is also on the look out for O&G related assets to
leverage on its strong balance sheet. Valuations are undemanding on an
annualised PE of 8.8x, Trading BUY.
6) Market - Expected resumption of uptrend arrived
earlier than expected. Trading buys on relative laggards, WCT, Fajar, LBS.
