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

Newz Bits 240212

Highlights of the day

§         Malaysia Market Strategy : Re-rating of FBMKLCI from PLUS is over [download report]

On 13 December 2011, we came out with a Malaysia Market Strategy report entitled “Delisting of PLUS to benefit others”.  Since then, the big cap stocks with dividend yield that we highlighted have appreciated in share price.  Given that their total increase in market cap of RM26.7bn is much higher compared to the RM9.1bn cash that was returned from the privatization of PLUS, this source of liquidity in pushing the FBMKLCI higher appears to have completed.  While there remains excess global liquidity which could continue to take the FBMKLCI higher, this lends credence to our view that at close to 1600, the FBMKLCI is toppish.

§         WCT (4QFY11 Results): Within expectations (Maintain BUY, TP: RM3.07) [download report]

WCT’s full year FY11 net profit was spot-on with respect to both house and consensus expectations. Although the group’s FY11 results were disappointing, we remain optimistic that WCT, backed by RM5bn tenderbook, will do much better in securing new construction jobs in FY12, having secured 2 contracts worth RM631m back-to-back this year in just one month. Maintain BUY, with sum-of-parts (SOP) target price raised slightly to RM3.07 from RM3.02 previously, to account for the group’s net debt position as at end-FY11 which was better than what we expected.

Other reports

§         Newz Bits [download report]

§         Malayan Banking (2HCY11 Results): stronger showing than expected (Maintain HOLD, TP: RM8.25) [download report]

§         Axiata (4QFY11 Results): Dividend surprise! (Maintain HOLD, TP: RM5.19) [download report]

§         IOI Corporation (2QFY12 Results): Strong plantations performance (Downgrade from Trading Buy to HOLD, TP: RM4.64) [download report]

§         Media Prima (4QFY11 Results): High dividend yield! (Maintain HOLD, TP: RM2.35) [download report]

Other Malaysian news

§         MMC: Dishing out RM5bn power-plant deal to a consortium

§         SP Setia: Eyes RM60bn in development value

§         Berjaya Corp: Vincent Tan retires from Berjaya Corp

§         Green Packet: To invest RM300m capex in 2012

§         Hibiscus Petroleum: Holds EGM on March 21

§         Construction: Mudajaya, Eversendai win RM 1.4bn Tanjung Bin expansion works

§         Oil & Gas: Gas Malaysia inks new gas supply agreement with Petronas

§         Oil & Gas: Petronas awards contract for LNG Train 9

§         Power: Ananda Krishnan mulls disposal of power portfolio

Global news

§         US: Jobless claims point to improving labor market

§         US: Home prices declined 2.4% in 4Q2011

§         Europe: IMF said to limit exposure to Greece at EUR30bn after second loan

§         Europe: Greece sets stage for Friday bond swap

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