FBMKLCI
1873.38 -3.24pts (-0.17%)
Volume 1.916b Value 6.012b
1) The KLCI saw sideways trading thruout the day before
closing in the red after the local index experienced the effects of month ends window dressing and
MSCI rebalancing. The huge surge in value today was due to the rebalancing with
PBBANK contributing RM2bn in value. The regional scene, bourses were flat as
HSI +0.31%, SHCOMP -0.07%, NIKKEI -0.34% closed mixed. In the local scene,
selected stocks were hit down especially towards the close led by FGV-3.6%,
GENM-3.5%, HAPSENG-5.2%, PARAMON-9% and YTLP-4%. Market breadth was negative
with losers beating gainers by 441 : 370. Futures closed at 1877 (4pts
premium).
2) Heavyweights : YTL -6.85% RM1.63, GENM -3.55% RM4.07,
MAYBANK -1.00% RM9.88, DIGI -1.81% RM5.42, IOICORP -1.98% MR4.93, FGV -3.63%,
PBBANK +4.75% RM21.60, PETGAS +2.08% RM24.50
3) DBT : DSONIC
130mil @ RM3.33 (19.25% PUC @ RM11.2% discount), ENCORP 110.388mil @ RM1.55
(46.807% PUC, Sale of stake to Felda Investment), ECOWLD 25mil @ RM4.50 (9.87%
PUC @ 10% discount).
4) Situational:-
HSL -0.50% RM1.99 - Hock Seng Lee Bhd has obtained a
contract from Kemena Holding Sdn Bhd for the construction of a water supply
works project at Samalaju, Bintulu worth RM51.94 million. HSL added the scope of works for the project
includes piling, earthworks, drainage, raw water intake facilities and related
piping works and mechanical and electrical works. The company expects
completion by the third quarter of 2015
at current rate.
5) HOVID
9Mths MarFY14
tover+2.7% RM135.5mil Net-6% RM13.38mil
Eps 1.76sen Div 1.8sen
60% of full year consensus of RM22.4mil
Ytd revenue was 2.7% higher rising from RM131.9 million
due to increased in orders. However PBT fell 4.2% as compared to RM18.4mil as
company was affected by higher operational costs and lower sales mix margin.
Ebitda margin fell from 18.7% to 17.1% ytd.
QoQ: revenue rose 14.1% to RM50.7 million from preceding
quarter's revenue of RM44.4 million. Pre-tax profit increased by 59.2% from
RM4.5 million in the preceding quarter to RM7.1 million in the current quarter,
attributed by better sales mix margins.
Expect follow thru recover in 4Q. Accumulate as currently
trading at 11.5xFY15 PER cheaper than its peers at around 13-15x. Key catalyst
from increased in overseas registrations and completion of its RM30m tablet and
capsule plant in early 2016.
6) Mkt: Expect quieter month ahead with index continuing
its recent consolidation with support at 1860pts level. Opportunity to buy on
selected names hit down during the rebalancing. Armada, GENM, FGV