Friday, May 10, 2013

Market Roundup | 9 May 2013


FBMKLCI    1766.07          -7.93 pts (-0.45%)           Volume  2.44b         Value RM2.52b
 
1) KLCI fell for 2nd day running as investors continue to lock in profits from gains post-election rally that brought the Index to an all-time high of 1826pts. Broader market showed resilience with mid-cap names seeing healthy gains led by ALAM+4.5%, PERISAI+9%, NAIM+8.5%, and E&O+7.7%. Regional market retreated after China CPI rose 2.4% in April which was more than consensus 2.3%. Market breadth was positive with gainers leading decliners by 556:214. Futures closed 1773pts (7pts premium).
  
2) Heavyweights : CIMB -3.03% RM8.31, MAYBANK -1.77% RM9.98, PBBANK -0.83% RM16.62, GENTING-0.92% RM10.80, AXIATA -0.57% RM6.95, PETGAS -0.97% RM20.30, IOICORP +4.1% RM5.33, SIME +0.64% RM9.51.
  
3) DBT : LUSTER-LA 36mil @ RM0.05, HUAYANG 2.5mil @ RM2.27 (1.2% PUC @ 1.3% discount), CRESNDO 2mil @ RM2.90 (1.02%PUC @ 2.7% discount)
 
4) Situationals:
 
KLCC+5.93% RM7.68 - Malaysia's first stapled REIT that bundles existing shares of KLCC Property and units of KLCC REIT rose upon lifting from its suspension. Its REIT status enhances its net profits via tax exemption. The yield now stands at 3.23% for FY13 according to consensus estimates.
  
CIMB-3% RM8.31: Share price fell after new shares totalling 183,075,800 or 2.4% of enlarged shares issued was listed today. These shares were issued via the dividend reinvestment scheme at price of RM6.30 per share.
 
5) MAXIS
 
1Q Mar 2013        Tover +4% RM2.33m     Net -17% RM475m    EPS 6.3sen
 
12% below Cons(f)  RM2.15bn
 
Group's revenue grew by 4% for the current period on the back of higher revenue from all business segments. The Group's EBITDA, however, was 1% or RM11 million lower driven by higher sales and marketing costs, staff-related costs, and other operating expenses resulting in EBITDA margin decline of 2.6% points to 48.2%.Bottom line was further affected by higher net financing, and amortisation costs of RM8 million and RM20 million, respectively resulting in net numbers falling 17% YOY.
 
Mobile services revenue recorded a 2% or RM51 million year-on-year growth largely driven by higher device sales, mobile internet usage and wholesale revenue. Total non-voice revenue as a percentage of total mobile revenue stands at 47.8%, an increase of 2.2% points over the same period last year.
 
Postpaid and Prepaid ARPUs decreased by RM4 and RM2 respectively mainly due to lower usage whilst Wireless Broadband ARPU remained relatively stable at RM65.
 
Enterprise fixed services revenue increased by RM18 million or 40% mainly due to higher volume from leased lines, satellite transmission and managed services.
 
Home services recorded revenue growth of RM9 million year-on-year on the back of a higher Home Fibre Internet subscription base. However, the EBITDA loss was largely due to start-up costs and higher operating cost.
 
Going forward,  the Group is focusing in bringing more value to its existing customers whose needs are growing across data and internet, over and above their traditional voice and SMS requirements. The Group will leverage on its existing mobile subscription leadership position and seed the market with new and exciting smart devices including those enabled with 4G LTE (launched 1 Jan 2013).
 
The strategic partnership between Maxis and Astro, which was launched on 30 April 2013, to exclusively develop and co-market unique consumer offers combining Astro B.yond IPTV and Astro On-The-Go services on Maxis' fixed and wireless platforms, is expected to further enhance the integrated proposition to its customers.
  
The company announced an interim div of 8sen and is committed to payout 40sen this year which will yield an attractive 5.7% but the sustainability of this payout remains in question as competition continues to eat into its mobile margins, hence going forward a lot is dependant on its fix line broad band segment.
 
 
6) Market - KLCI current consolidation around the 1750pts to continue before resuming the upward trend towards an immediate target of 1820pts.