Friday, May 15, 2015

Market Roundup | 14 May 2015


FBMKLCI   1807.55   +4.53pts (+0.25%)      Volume 1.574b   Value RM1.794b
 
1) The KLCI closed higher for a 2nd day as the Ringgit rebounded against the USD after weaker US retail sales weighed on the market and currency. In the regional market, bourses were mostly flat today with HSI +0.14%, SHCOMP +0.06%, NIKKEI -0.97% traded in range bound territory thruout the day. In the local scene, INDUSTRIAL PRODUCTS +0.86% index gained the most grounds boosted by PCHEM +2.83%, HARTA +2.72%, SKPRES +6.31% while the PROPERTY -0.65% index lost the most grounds due to losses amongst heavyweights UEMS -6.29%, IOIPG -3.68%, SPSETIA -1.43%. Market breadth was positive as gainers inched losers by 433 : 355. Futures closed at 1803 (4.5pts discount).
 
2) Heavyweights : CIMB +1.86% RM6.00, PCHEM +2.83% RM6.16, KLK +3.09% RM22.00, GENTING +1.43% RM9.20, TENAGA +0.58% RM13.85, AXIATA +0.89% RM6.79, IOICORP -2.09% RM4.21, BAT -0.59% RM63.74.
 
3) DBT: KANGER 26.5mil @ RM0.155 (5.02% PUC @ 35% discount), KENANGA 10.262mil @ RM0.65 (1.40% PUC @ 14% discount), SKPRES 10mil @ RM0.96 (5% discount), BARAKAH 8mil @ RM0.85 (2.9% discount).
 
4) Situational:-
KIMLUN 0.00% RM1.31 - Kimlun is acquiring 140.8 acres land in Kota Tinggi, Johor for RM28.3m and proposed to build residential properties thereon. Kimlun said the development potential has yet to be detailed or finalised as it is at the preliminary stage
 
MULPHAL 0.00% RM0.80 - Mulpha Land: Plans private placement to finance land buy, repay debts. Mulpha Land plans to undertake a private placement of up to 10% of its issued share capital to finance a land acquisition, repay borrowings and as its working capital. It said the proposed private placement will be issued at any point of time to third party investor(s) to be identified at an issue price to be determined later.
 
PERDANA/DAYANG  -  Dayang has proposed to acq 42.965m shares of Perdana representing 5.74% PUC in Perdana from Affin Hwang Asset Mgmt for a cash consideration of RM66.596m or RM1.55/share.
It has also proposed a MGO for all remaining Perdana shares for a cash consideration of RM1.55 and RM0.84 per warrant. – with the challenging environment O&G players are facing and particularly vessel operators, we advise investors to accept the MGO.
 
 
5) Media P
1Q Mar 2015  Tover -6.2% RM329.4m      Net -30% RM18.9m EPS 1.8c
                              Cons(f) RM168m
The company recorded overall numbers due to the continuous market uncertainties and consumers were adopting a more cautious approach closer to the Goods and Services Tax (GST) implementation. The 3 main divisions all recoded lower qtrs with  a) Television Network – Revenue for the period was lower by 7%. Profit after tax has also declined by 56%, in tandem with lower revenue recorded during the period.  b) Print Media – Print revenue declined by 6% due to lower newspaper sales revenue.  c) Outdoor Media – Revenue increased by 2% against previous comparative period. However, profit after tax decreased by 2% due to provision for authority fees in the period.
Company has guided for Adex to remain flat in 2015 as consumers slowly adjust to the new tax system and consumer sentiment gradually normalises. It will seeks to grow its non-traditional revenue while consolidating its market share in core advertising revenue.
The much weaker numbers is likely to impact its div payout which has been supporting current valuations, a 30% dip in current year earnings could see its current high yield dip closer to ard the 4.7% levels. However given the uncertain outlook investors could demand a high yield to remain invested which could see its price slip closer to ard the RM1.50 lvls.
 
6) Market – Current dull sentiment could be lifted by the biggest listing this year as Malakoff is relisted. IPO price of RM1.80 with immediate term earnings growth bolstered by capacity payments from Tanjong Bin commencing 2016. We recommend to take profits above the RM2.10 lvls as fwd yield dips below 4%.