FBMKLCI
1821.21 +0.34pts (+0.02%) Volume 2.212b Value 2.732b
1821.21 +0.34pts (+0.02%) Volume 2.212b Value 2.732b
1)
The KLCI traded most of the day in negative territory following a pullback in
oil prices overnight but closed slightly above parity on selected buying in
blue chips late in the session. In the regional scene, bourses were mixed with
SHCOMP +0.37%, ASX +0.34%, NIKKEI +0.06% whilst STI -0.68%, HSI -0.32% on an
uninspiring lead from the US (worse than expected jobless claims). In the local
scene, the TECHNOLOGY index +0.64% gained the most today led by INARI +4.76%,
VITROX +4.92%, MPI +2.46%. Market breadth was negative today with losers
beating gainers by 484 : 367. Futures closed at 1826 (5pts premium).
2)
Heavyweights : TENAGA +1.52% RM14.72, CIMB +2.06% RM5.95, FGV -10.43% RM2.32,
PETGAS -1.96% RM23.06, DIGI -1.24% RM6.35, GENTING -1.45% RM8.85, PETDAG +4.93%
RM19.58, IHH +1.64% RM5.57.
3)
DBT: IDMENSN 10mil @ RM0.10 (2.25% PUC @ 5.0% discount), NIHSIN 10mil @ RM0.38
(4.23% PUC), PELIKAN 10mil @ RM1.30 (2.3% premium).
4)
Situational:-
IJM
+1.13% RM7.18 - IJM Corp Bhd’s wholly-owned subsidiary, IJM Construction Sdn
Bhd, has bagged a RM1.19 billion contract from Kuantan Port Consortium Sdn Bhd
to construct a new deepwater terminal in Kuantan Port, Pahang. IJM said it will
take 36 months to complete the project. IJM’s wholly-owned subsidiary Road
Builder (M) Holdings Bhd has a 62% stake in KPC, with the Government of
Malaysia holding a special rights share.
5)
IJM
9mths
Dec 2014 Tover -8% RM4bn Net
-54% RM382.7m 26.1sen
15% below Cons(f) RM611m
Over
the current year to-date, the Group’s 8% dip in revenue was due to a decrease
in revenue from the
Group’s
Construction division, whilst the Group’s pre-tax profit decreased by 30.7% to
RM774.7
million
mainly due to the one-off gains recorded in the preceding year in addition to
another one-off gain of RM56.5 mil on the part disposal of Trichy Tollway Pte.
Ltd recorded in the first quarter of the previous year. Excluding the impact of
these three nonrecurring items, the Group’s pre-tax profits for the current
period have increased by 15.7% over the preceding year to date. On
segmental basis, Construction - year to-date revenue declined 51.1% whereas
pre-tax profit climbed 29.8% mainly due to better margins from various projects
and
favourable exchange rate movements resulting in an unrealised foreign exchange
gain of RM1.1 for current year to-date as compared to an unrealised foreign
exchange loss of RM7.8 mil in the preceding financial year to-date.
Property - excluding the one-off gain, the division’s yearly pre-tax
profits increased by 1.1%. Plantations - Revenue YTD increased 16.5% in
addition to higher sales volume, pre-tax profits YTD increased
by
244.3% as a result of the higher crop production (due to the recovery from palm
stress experienced in the previous year) as well as due to a lesser adverse
impact of the exchange rate movement of the Rupiah against the US Dollar.
Infrastructure - Revenue YTD increased by 33.2% compared to the previous year
mainly due to continued traffic growth in the Group’s toll road concessions as
well as the consolidation of Swarna Tollway Pte Ltd since it became a
subsidiary in November 2013.
With
the recent contract win for Kuantan Port bringing its order book to RM4bn, the
company remains one of the leading construction companies with West Coast
contracts the next big infrastructure project in the pipeline. Price has
however performed strongly this year, rising 9.3% hence we recommend only a
hold at this juncture with a Buy below RM7.00.
6)
Market : Range bound between 1800-1830pts to at best in the short term as
result season has seen more disappointments than earning surprises.
