News Bits | 02 Nov 2012

Highlights of the day

§  SapuraKencana Petroleum (Quick Bits): Won two contracts worth RM835m (Maintain HOLD, TP: RM2.46) [download report]

In an announcement to Bursa Malaysia, SapuraKencana Petroleum Berhad has won two contracts worth RM835m. This brings YTD contract wins to an estimated RM3.8-4.0bn. We have factored these contract wins into our orderbook assumption. Based on an average pretax profit margin of 12%, the total pretax profit from the contracts is RM100m over the contract period of three years or averaging RM33m pa which is 4% of our FY13 pretax profit. Maintain Hold with a target price of RM2.46 based on 20x CY13 EPS of 12.3 sen.

 

Other reports

§  Newz Bits [download report]

 

Other Malaysian news

§  DRB-Hicom: Streamlining of businesses in EON and Proton Edar

§  Gamuda:  Chief ups stake, stock at 7-month high

§  Berjaya Land: Plans RM9.92bn casino and mall on Jeju Island

§  Brahim’s Holdings: Targets the Middle East

§  Premier Naflin: Target for reverse takeover

§  Aviation:  Malindo Air brings forward operations date to mid-March

§  O&G: Petronas hires lobbyists

§  Telco: U-Mobile not interested in P1

 

Global news

§  US: Initial jobless claims fall by 9,000 to 363,000

§  US: Companies in sustain productivity to cut labor costs

§  US: ADP says companies add most workers in eight months

§  US: Factories to shoppers weathers world slowdown

§  US: Fed’s Rosengren backs QE3 until unemployment falls to 7.25%

§  Europe: IMF says measures to cut Greek debt must be meaningful

§  China: Manufacturing gains signal 4Q rebound

 

 

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News Bits | 29 Oct 2012

Reports

§  Newz Bits [download report]

 

Malaysian news

§  Bumi Armada:  New FPSO ready

§  AirAsia: To reap RM180m from Tune Ins IPO

§  AirAsia: EPF net seller of shares

§  DRB-Hicom: Expected to partner Mitsubishi

§  DRB-Hicom: Proton set to tie up strategic partnership with Japanese firm

§  TH Plantations: To buy land in Sarawak for RM255m

§  Cypark: Plans to expand supply to the national grid

§  Brahim’s Holdings: To complete acquisition of LSG Asia stake

§  Brahim’s Holdings: Hopes to wipe out losses 

§  Insurance: ING buy sets benchmark for CIMB-Aviva deal

§  Economy: Sabah has potential to become Malaysia’s economic powerhouse

 

Global news

§  US: Growth exceeds forecasts on consumer spending

§  US: Goods orders point to business spending slump

§  US: Jobless claims show limited labor market progress

§  US: Michigan consumer sentiment index increased to 82.6 in October

§  Europe: Troika proposes new debt restructuring for Greece, Spiegel says

§  China: Slowing Revenue Gains Seen Limiting Spending to Aid Growth

§  South Korea: Growth slows as global cooling caps exports

§  Singapore: Output declines

 

 

Visit ECM Libra at https://www.ecmlibra.com/ecmlsmy

Our on-line trading portal at www.ecmmoney.com

Market Roundup 180112

FBM30 1517.38, -1.98 points (-0.13%), Volume 1,490mil, Value 1,599.8mil

1) KLCI was lower after World Bank cut its global growth forecast by the most in three years as probable recession in the euro region threatens to exacerbate a slowdown in emerging markets. Market was also drifted lower after Fitch said Greece would probably default in March resulting in profit taking among heavyweights which saw index reach a low of 1513.38pts (-5.98pts) before late push up of MAYBANK, GENTING, and RHBCap salvaged 4 points at close. Broader market was mixed with advancers edging decliners 368:364. Futures closed 1516.5 (1 point discount).

2) Heavyweights: TENAGA-2.09% RM6.10, AXIATA-1.22% RM4.87, CIMB-0.7% RM7.11, AMMB-1.03% RM5.78, TM-1.04% RM4.75, PCHEM+2% RM6.64, PBBANK+0.45% RM13.24, YTL+2.04% RM1.50

3) DBT: DBE 12mil @ RM0.08, OLDTOWN 5mil @ RM1.22

4) Situationals:

BPURI+1.64% RM0.93: its subsidiary Bina Puri Pakistan (Private) Ltd has entered into a concession agreement worth RM864m with the National Highway Authority of Pakistan. The agreement is for the construction of the 136km four-lane Karachi-Hyderabad superhighway (M-9 highway) on a build-operate-transfer basis. The concession period is for 28 years and the construction, upgrading and rehabilitation of the motorway are expected to be completed over 30 months.

BRAHIMS+0.7% RM0.72: Share price of BRAHIMS which has risen 50% YTD, announced that the Company will subscribe for an up to 60% equity interest in Admuda Sdn Bhd (Admuda) for a consideration of up to RM20m to be satisfied via a combination of cash and issuance of the Company's shares. Admuda holds a licence from the Ministry of International Trade and Industry (MITI) to operate as a licensed manufacturer of refined sugar and molasses in East Malaysia.

5) Dayang - announced acquired and taken delivery of an offshore accommodation workboat named Dayang Topaz. Expected but +ve as adds to current fleet of 7 which is fully utilised. Enhances chances of RM3bn bids for 2012 to add to current orderbk of RM1.4bn which can last till 2016 (mainly from Petronas Carigali RM800m). Co recently acq 10% Perdana which is synergistic as adds another 8 vessels to fleet. Trades at PER 11x-Trading buy.

6) Mkt - consolidation above 1500pts as vol quietens down ahead of long wkend. Stks at attractive buy lvls: Pos, MAS, Integrax, Timecom, MRCB, Perdana.