Morning Call 080212

FLOWS


BUYS: Axiata, AMMB, DRBHcm


SELLS: GentM, JCY, PBBank


Technical Stock Alert


Time Com (RM0.71) - Charting indicators, MACD and RSI cutting upwards with an immediate upside target of RM0.75 and RM0.82. Has been linked to Asia Broadcasting Network to provide the fiber optic infrastructure to carry the transmissions of the new cable network, set for roll out by 2Q this year.


TMC Life (RM0.325) - Consolidated in the last two months between RM0.30-RM0.35. Recent increased interest in healthcare players could see a breach above this trading range with a target of RM0.42.


Company Visit Update


Perisai - (RM0.845)


- Completed 100% acquisition of Garuda Energy in Jan 2012.


- Intan Offshore should see some recovery in earnings as past years involved statutory dry docking of a vessel.


- The full year effect of all the new acquisitions should see the company earn a PAT of RM80m to RM90m for FYE 2012.


- Remains on the acquisition trail with aspirations of being an asset based O&G player.


- Eyeing to participation in marginal oilfields through a tie up with a foreign partner.


- Potentially another USD100m to RM200m asset acquisition on the cards in the 2H 2012 which would require capital raising through equity as the company targets to maintain a maximum gearing of around 1.6x.


- We rate this stock a BUY, trading at only 8x PE multiple.

Market Roundup 231211

FBM30 1496.15, +4.69 points (+0.31%), Volume 942.5mil, Value 886.7mil       

1) The market traded in the positive territory in thin volume  ahead of the long weekend Christmas break and expected further +ve economic data from the US later today. Index closed marginally higher, just below the 1,500 psychological level with most of the heavyweights muted. Construction (+1.1%) led the gainers IJM+3%, MRCB+1%, AZRB+3% along with some select sits: LMCEMNT+4.6%, PETDAG+1.7%, KLK+1%. Market breadth was positive amid both volume and value fell below the 1bn mark, as gainers outpacing losers 413:292. Futures closed 1498 (2 points premium) 

2) Heavyweights: CIMB-1.3% RM7.09, DIGI+1.6% RM3.74, GENTING+1.1% RM10.88, IOICORP+1% RM5.19, TENAGA+0.9% RM5.84, BAT+2.8% RM49.20,TM+1.3% RM4.80, UMW+2.3% RM6.60, MAYBANK-1.2% RM8.35, PBBANK-0.6% RM13.18.  

3) DBT: MENANG 25mil @ RM0.20, A&M 10mil @ RM0.415, SUNWAY 7.5mil @ RM2.40 

4) Situationals: 

MRCB+1% RM2.09: Shares edged up after its unit MRCB Engineering Sdn Bhd has been awarded a RM13.93mil contract to upgrade the Sabah EPF building. The project involved renovating and upgrading the EPF building in Kota Kinabalu, Sabah of approximately 400,000 square feet. The project would be financed via internally generated funds and/or borrowings, and completed within 18 months from Jan 16, 2012. 

PERISAI+6.6% RM0.73: Share price rose in active trade after the company said it expects contribution from its mobile offshore production unit (MOPU), which it acquired through Garuda Energy (L) Ltd to be realised by FY12. Its MD said that the acquisition would be finalised by the end of this year and will start contributing to the group's bottom line from the first day of its operation as the group's asset.  

5) SUNWAY BERHAD

Announce that Sunway Geotechnics (M) Sdn Bhd, a wholly-owned subsidiary of Sunway Construction Sdn Bhd, which in turn is a wholly-owned subsidiary of Sunway Holdings Sdn Bhd and which in turn is a wholly-owned subsidiary of Sunway, had on 22 December 2011, accepted the letter of award for a contract worth RM27.57m from Hap Seng Land Development (JTR) Sdn Bhd for the proposed construction and completion of earthworks, pilings, basement (B2 & B1) and ground floor RC structures for 1 block of 43-storey service apartment at Lot 28, Seksyen 90, Jalan Tun Razak, Kuala Lumpur  

The Proposed Project is targeted to be fully completed on or by 12 December 2012 with a construction period of 12 months. It is expected to contribute positively to the earnings of Sunway Group for the financial year ending 31 December 2012 onwards.

6) Mkt - Bursa will be closed on 26th Dec and resume trading on the 27th. Merry Christmas!