FBMKLCI
1717.65 +9.68pts
(+0.57%) Volume 811.7mil Value RM2,266mil
1) The KLCI rose to an all-time high of 1718.44pts
(+10.47pts) as index saw month end window dressing with volume picking up for
last hour of trading. Prior to closing overall market were generally lackluster
in a tight trading range despite seeing a positive regionals which rose after
US homes sales gained. Property-1.19% fell led by recent outperformers
UEMLAND-4.9%, GUOCO-4.4% and TEBRAU-1.6%. Market breadth was negative with decliners leading gainers
443:254. Futures closed at 1716.5 (1pts discount)
2) Heavyweights: UMW+2.58% RM14.30, GENM+2.45% RM3.76,
KLK+1.99% RM21.56, RHB+1.49% RM8.48, IOICORP+1.41% RM8.48, FGV+1.32% RM4.62,
DIGI+1.31% RM4.64, BAT+1.25% RM63.32
3) DBT: ASIABIO 50mil @ RM0.07 (13% PUC, 6.6% discount),
KAMDAR 16mil @ RM0.55 (8% PUC, 6.7% premium ), SKPETRO 10mil @ 3.175
4) Situationals:
SSTEEL+8.7% RM1.50: Share price rose after posting a net
profit of RM18.26mil vs loss of 22.78mil million (previous year) for its third
quarter end-Feb 2013. Revenue was lower at RM724.99 million, compared with
RM869.26 million due to lower selling price and sales volume. Better margin
from lower material cost enabled the group to turnaround from a loss. The
company also proposed a dividend of 5 sen.
5) GTRONICS
1Q Mar 2013 Tover
+36.4% RM77.5m Net +68%
RM10.1m EPS 3.7sen
16% below cons (f) RM48m
The stronger numbers in top line and bottom line YOY was
a result of new product launches and higher volume loadings. The 1Q however was
9% lower in revenue vs 4Q 2012 due to seasonal slow downs and festive holidays
during the period. We are comfortable that full year earnings projections will
likely to be met as the company has already experienced a recovery in volume
loadings in March/April. Several news products are currently being developed
for the smart phone/tablet market and should see commercial roll out by the 4Q.
The company is also developing new sensor products for other application which
should help it achieved another 20-30% bottom line growth in 2014. Balance
sheet remains strong at RM109.7m net cash allowing the company to maintain its
recent dividend payout ratio of over 80% resulting in an attractive net yield
of 8%. Maintain accumulate on weakness.
6) Market - The KLCI remains unusually buoyant especially
in core blues despite the upcoming GE13. Investors are likely to remain
sidelined and we advocate a sell into strength with this uncertainty overhang
with a review after results are known.