FBMKLCI
1869.22 -5.90pts (-0.31%)
Volume 1.570b Value 1.885b
1) The KLCI ended the session lower for the 4th straight
day on continued profit taking and lackluster activity bucking overall positive
market sentiments. In the regional market, bourses finished in positive
territory led by the NIKKEI +0.87% thanks to upbeat economic date from it's two
biggest trading partners - the US and China; followed by the SHCOMP +0.66% on
speculation the government will be easing property curbs whilst the HSI +0.05%
finished flat from profit taking. In the local scene, underperformance was seen
in the Plantation Index led by blue chips IOICORP -2.7%, KLK -1.38%, and GENP
-1.06% witnessing the most downside. Market breadth was negative with losers
beating gainers by 492:296. Futures closed at 1868.5 (1 point discount).
2) Heavyweights : IOICORP -2.7% RM5.05, SKPETRO -2.39%
RM4.09, CIMB -0.95% RM7.31, IHH -2.82% RM4.14, MAYBANK -0.50% RM9.90, KLK
-1.38% RM24.26, MISC -1.74% RM6.20, ASTRO +2.94% RM3.50.
3) DBT : SKPRES 52.0mil @ RM0.37 (5.78% PUC @ 6.33%
discount), DESTINI 5.0mil @ RM0.61 (3.94% discount), AAX 4.0mil @ RM0.73 (4.58%
discount).
4) Situational:-
PETGAS -0.25% RM24.34 - Petronas Gas Berhad's subsidiary,
Kimanis Power Sdn Bhd started the commercial operations of the first 100 MW
block of its Kimanis Power Plant in Kimanis. PETGAS owns 60 per cent of the
power plant.
5) DAYANG
1QFY14
Revenue+101% RM177.35mil
Net+21.7% RM33.45mil Eps 4.21sen
14.5% of FY concensus of RM230.5m
revenue more than doubled in the current quarter as
compared to the corresponding quarter is mainly due to higher value of work
orders received and performed in the current quarter for the new hook-up and
commissioning contracts that were awarded in May 2013. PBT excluding share of
results of an associate only grew by RM6.6mil or 21% due to lower profit
margins. EBITDA margins fell from 35.8% to 22% this quarter.
QoQ, Revenue fell 7% from RM190.75mil but saw PBT jumped
RM13mil or 54%. Lower revenue was mainly due to lower vessel utilisation rate
and lower work orders received and performed in the current quarter. However
the work orders in the current quarter have a higher profit margin contribution
as compared to those of the preceding quarter. An impairment loss of RM4.0
million was provided for in the preceding quarter ended 31 December 2013.
Expect earnings to grow substantially with earnings
pickup up post monsoon season. Company is backed by on-going hook-up and
commissioning contracts of about RM4.0 billion which is expected to last at
least until 2018. currently company has an outstanding tender book of
approximately RM400.0 million. Buy
6) Mkt: consolidation across the board is expected with
the KLCI support at 1860pts levels
