News Bits | 13 Dec 2012

Highlights of the day

§  S P Setia (Results Review): 4QFY12: Sales exceeded target (Maintain HOLD, TP: RM3.70) [download report]

SP Setia’s FY2012 results met our expectations but was below market’s as net profit of RM394m made up 99% and 82% of house (adjusted) and consensus full-year estimates, respectively. 4QFY12 saw net profit growth 54% y-o-y backed by higher revenue recognition mainly from its property development projects and better margins. The Group managed to surpass its FY2012 sales target by securing total property sales of RM4.23bn (+29% y-o-y). For FY2013, the Group is targeting sales of RM5.5bn to be driven by the Group’s existing projects and new launches. A gross final dividend of 9 sen was recommended for the quarter.

 

Other reports

§  Newz Bits [download report]

 

Other Malaysian news

§  AirAsia: To unveil order for 100 Airbus jets

§  MBSB: Buying tower in PJ Sentral

§  Berjaya Toto: May give special dividend

§  Media Prima: Forms digital arm to expand revenue

§  UOA Development: To sell building to UEM for RM173.25m

§  REDtone: Eyes RM80m revenue from data business in FY13

§  Construction: Rail decisions by 1Q

§  Media: ABN targets 80% of TV households in five years

§  Media: Rolling out digital TV may cost RM1bn

§  Telco: U Mobile works with Macro Kiosk on EMS

 

Global news

§  US: Fed links rates to joblessness, prices as bond buying expanded

§  US: Fed officials forecast main rate to stay near zero until 2015

§  Europe: EU finance ministers move toward agreement on ECB bank oversight

§  Europe: Greece plans to retire EUR31.9bn of debt in buyback

Market Roundup 130212

FBM30 1562.82, +1.16 points (+0.07%), Volume 2,661mil, Value 2,119mil

1) Despite the welcomed news of the Greek Parliament had passing the unpopular austerity bill to secure a second bailout package, the KLCI remained subdued which saw  lackluster trading with index remaining in a tight 5 points range before closing marginally higher. Plantation names led the gainers list as KLK+2%, UTDPLNT+2.3%, HSPLNT+2.4% while profit taking dominated proceedings as recent out performers were sold down: DRBHCOM-3.7%, NICORP-16.4%, LONBISC+4.3%. Market breadth turned negative with losers thumping gainers 517:364. Futures closed 1558.5 (4 points discount)

2) Heavyweights: GENTING+1.9% RM10.50, TENAGA+1.3% RM6.19, KLK+2% RM25.98, YTL+2.7% RM1.52, BAT+2.4% RM51.50, IOICORP+0.5% RM5.50, PETGAS+0.9% RM16.60, HLBANK+0.5% RM11.56, CIMB-0.7% RM7.16, SIME-0.6% RM9.61.

3) DBT: TWRREIT 2.5mil @ RM1.36, COMPUGT 1.8mil @ RM0.13.

4) Situationals:

TIME+15.7% RM0.405: Share price surged in active trade on news of a potential stake sale by major shareholder, Khazanah Nasional; with three potential bidders for its 45% stake, the Edge weekly reported. The three bidders are Zamcorp, MM Tech Corp and "an entity linked to prominent businessman" Syed Mokhtar Al-Bukhary, the paper said citing an unnamed source.

MBSB+5.8% RM2.36: Local news tabloid speculated that the company's biggest shareholder, Employees Provident Fund is considering buying out the mortgage financing provider.

5) FELDA GLOBAL VENTURES

At a briefing to Felda personnel today, the Government is expecting the market capitalization to touch RM21bn when it list on May 10. The government also intends to pay pre and post listing dividends. Koperasi Permodalan Felda (KPF) will be the single largest shareholder with a 37% stake. The list of other government linked funds including PNB & EPF stakes has also been finalized.

Felda Global has also narrowed down its choice of global partners to two companies to help diversify the group and open more markets. A final decision will be made once negotiations are completed.

+ve as the listing will help refocus interest back on the plantation sector which has been in a consolidation phase.

6) Market - The KLCI could continue its consolidation phase after the record volumes traded last week. We expect it to remain in a tight range of between 1560-1540 pts.

Market Roundup 100112

FBM30 1521.99, +0.26 points (+0.02%), Volume 1,858mil, Value 1,872mil

1) KLCI ended mixed trading in a 5 points range as market was sluggish despite the positive region which rose on positive US data and speculations slowing China export data could encourage monetary easing policies. Malaysia's industrial production growth was also lower than estimates as manufacturing growth slows. Construction+1.2% outperformed in anticipation of jobs being awarded from the ETP program. Market breadth was positive with advancers outpacing decliners 416:330. Futures closed 1527 (5 points premium).

2) Heavyweights: DIGI+1.04% RM3.90, PETGAS+1.59% RM15.34, KLK+1.06% RM24.84, TM+1.03% RM4.91, PCHEM+0.47% RM6.36, GENTING-2.15% RM10.90, GENM-0.77% RM3.88, MHB-1.91% RM5.65

3) DBT: SCOMI 16.3mil @ RM0.15 (46% discount), BJCORP 12mil @ RM0.94 (10.5% discount),

4) Situationals:

TAKASO+2.08% RM0.245: TAKASO topped volume today with share price reaching a high of RM0.28 after news reported that company will be acquiring Kayumas Plantation PNG Ltd which has a timber license and concession in a bid to diversify its business. The company holds the rights to a net loggable area of 40,000ha of timber possibly worth up to RM500mil with length of extraction up to 9 years.

MBSB+4.12% RM2.02: Bank Negara has granted permission for MBSB to participate in its Central Credit Reference Information System (CCRIS) effective this month. This information is collected by the central bank's credit bureau from participating lending institutions to assit them in making informed decisions on credit applicants.

GAMUDA+3.52% RM3.53: Gamuda in response to news reports confirmed they have been invited by China Railway Construction corp to be its local partner in a group bidding for the Gemas-Johor Bahru railway project that is worth RM8bil.

5) SAPURACREST

Announced that SapuraAcergy Sdn Bhd has been awarded a contract for a subsea construction project, offshore Vietnam. SASB is a joint venture company equally owned by SapuraCrest Petroleum Berhad and Subsea 7 S.A. The scope of work requires the installation of 28km of 12" diameter pipeline, a 28km umbilical, Pipeline End Terminations and Subsea Isolation Valve , Structures, spools and pre-commissioning.

The value of the Contract awarded is approximately USD100 million, with the offshore work expected to be performed in mid 2012.

+ve the merger exercise with Kencana expected to be finalized by the 1Q this year will be the major re rating catalyst for both companies.

6) Market - Current bullish trend to continue with situationals and 2nd liners continuing to take center stage in the run up to CNY.