Showing posts with label Stock Watch 02/13. Show all posts
Showing posts with label Stock Watch 02/13. Show all posts
Thursday, February 28, 2013
Friday, February 15, 2013
Affin keeps Add rating for CIMB, Maybank Research maintains Sell (STAR)
KUALA LUMPUR: RHB Research Institute retained its fair value of RM8.70 for CIMB Group based on the target CY13 price-to-earnings ratio (PER) of 13 times.
It said on Friday CIMB was an excellent proxy to the ongoing rollout of projects under the Economic Transformation Programme, Public-Private Partnership and various economic corridor projects.
“However, near-term risk we see is the upcoming general elections, although this could present investors the opportunity to buy on weakness'. Trading Buy recommendation maintained,” it said.
Affin Investment Research is maintaining its Add rating for CIMB Group and price target of RM8.73, which is two times price to book value (P/BV).
It said on Friday the factors were based on several assumptions of FY2013 returns on equity of 15.5%, growth rate at 7% and cost of equity of 11.2%.
"At RM7.16, CIMB is trading at a P/BV of 1.7 times FY13 and 1.5 times FY14, in-line with its prospective mean P/B multiple of 1.7 times multiple but below its one standard deviation of 2.2 times," it said.
Affin Research said for FY12, CIMB Niaga achieved a 33% growth in net profit to Rp4,233bil or RM1.354bil.
"The results were within our expectations and accounted for 32% of our FY12 net profit forecast of RM4,208.7m for the CIMB Group," it said.
Meanwhile, Maybank KE Research is maintaining its Sell on CIMB Group and its target price of RM7.30 for now, pending the group's results release on Feb 25.
"Sentiment towards the stock is likely to remain weak ahead of the 13th general election and further volatility is to be expected owing to its high foreign holding of 34.8%," it said on Friday.
Maybank Research said its target price of RM7.30 was based on a price-to-book value of 1.8 times, returns on equity of 15.9%.
It said CIMB Niaga's Q4, 2012 results were marginally above its expectations, contributing to a full-year net profit variance of about 4.6%.
"Factoring in a weaker Rupiah in Q4, 2012 vs Q3, 2012 however, the overall impact to CIMB's FY12 earnings would be a more muted 3% increase," it said.
Its FY13 net profit forecast for CIMB Niaga is raised by 6% on faster growth in non-interest income.
Treasury income growth has been stronger than anticipated in FY12; its momentum is likely to sustain as the bank shifts towards customer-based transactions.
"Overall, however, this translates to a more modest 2% increase in earnings for the CIMB group, and our forecasts are maintained for now. We expect CIMB Niaga to contribute 32% to group net profit in FY13 (FY12: 31%)," it said.
It said on Friday CIMB was an excellent proxy to the ongoing rollout of projects under the Economic Transformation Programme, Public-Private Partnership and various economic corridor projects.
“However, near-term risk we see is the upcoming general elections, although this could present investors the opportunity to buy on weakness'. Trading Buy recommendation maintained,” it said.
Affin Investment Research is maintaining its Add rating for CIMB Group and price target of RM8.73, which is two times price to book value (P/BV).
It said on Friday the factors were based on several assumptions of FY2013 returns on equity of 15.5%, growth rate at 7% and cost of equity of 11.2%.
"At RM7.16, CIMB is trading at a P/BV of 1.7 times FY13 and 1.5 times FY14, in-line with its prospective mean P/B multiple of 1.7 times multiple but below its one standard deviation of 2.2 times," it said.
Affin Research said for FY12, CIMB Niaga achieved a 33% growth in net profit to Rp4,233bil or RM1.354bil.
"The results were within our expectations and accounted for 32% of our FY12 net profit forecast of RM4,208.7m for the CIMB Group," it said.
Meanwhile, Maybank KE Research is maintaining its Sell on CIMB Group and its target price of RM7.30 for now, pending the group's results release on Feb 25.
"Sentiment towards the stock is likely to remain weak ahead of the 13th general election and further volatility is to be expected owing to its high foreign holding of 34.8%," it said on Friday.
Maybank Research said its target price of RM7.30 was based on a price-to-book value of 1.8 times, returns on equity of 15.9%.
It said CIMB Niaga's Q4, 2012 results were marginally above its expectations, contributing to a full-year net profit variance of about 4.6%.
"Factoring in a weaker Rupiah in Q4, 2012 vs Q3, 2012 however, the overall impact to CIMB's FY12 earnings would be a more muted 3% increase," it said.
Its FY13 net profit forecast for CIMB Niaga is raised by 6% on faster growth in non-interest income.
Treasury income growth has been stronger than anticipated in FY12; its momentum is likely to sustain as the bank shifts towards customer-based transactions.
"Overall, however, this translates to a more modest 2% increase in earnings for the CIMB group, and our forecasts are maintained for now. We expect CIMB Niaga to contribute 32% to group net profit in FY13 (FY12: 31%)," it said.
Friday, February 8, 2013
CIMB Research ups Perisai Petroleum target price to RM1.63 (STAR)
KUALA LUMPUR: CIMB Equities Research has raised its target price for Perisai Petroleum from RM1.57 to RM1.63, which is 68.6% from the current price of 97 sen.
The research house said its target price rose after it had increased the FY13-14 EPS on imputing the FPSO contributions, loss of contributions from a pipelay unit, and a 10% private placement.
“We continue to value the stock at our CY14 target market P/E of 13.3 times. Perisai remains an Outperform and our top small-cap oil & gas pick.
"Higher-margin new assets and successful drilling and floating production, storage and offloading (FPSO) ventures are potential catalysts,” it said.
CIMB Research said FY12 was a scorching year for Perisai, which turned in record core earnings, mostly thanks to Garuda's MOPU (Mobile Offshore Production Units).
Net profit excluding one-offs was in line, at 101% of our forecast and 99% of consensus. Another record is in store for 2013 when FPSO contributions kick in, it added.
It said the non-cash one-offs include impairment charges on investment in an associate and cold-stacked vessels. Excluding the exceptionals, Perisai posted a 4Q core net profit of RM23mil, up 24% on-year. This took FY12 core net profit to a record RM91mil, equivalent to blistering growth of 158%.
The research house said its target price rose after it had increased the FY13-14 EPS on imputing the FPSO contributions, loss of contributions from a pipelay unit, and a 10% private placement.
“We continue to value the stock at our CY14 target market P/E of 13.3 times. Perisai remains an Outperform and our top small-cap oil & gas pick.
"Higher-margin new assets and successful drilling and floating production, storage and offloading (FPSO) ventures are potential catalysts,” it said.
CIMB Research said FY12 was a scorching year for Perisai, which turned in record core earnings, mostly thanks to Garuda's MOPU (Mobile Offshore Production Units).
Net profit excluding one-offs was in line, at 101% of our forecast and 99% of consensus. Another record is in store for 2013 when FPSO contributions kick in, it added.
It said the non-cash one-offs include impairment charges on investment in an associate and cold-stacked vessels. Excluding the exceptionals, Perisai posted a 4Q core net profit of RM23mil, up 24% on-year. This took FY12 core net profit to a record RM91mil, equivalent to blistering growth of 158%.
Thursday, February 7, 2013
Ahmad Zaki Resources - Ahmad Zaki 2.0 (OSK)
buy Fair Value : MYR 1.45
A defensive side that is under-appreciated. Ahmad Zaki Resources (Ahmad Zaki) is beginning to see the fruit of its labour of having grown some defensive non-construction businesses, i.e. bunkering operation at Kemaman Supply Base, oil palm plantation in West Kalimantan, and the design, build, lease, maintain & transfer (DBLMT) of a teaching hospital for the International Islamic University Malaysia (IIUM) in Kuantan under the Private Finance Initiative (PFI). With their defensive, recurring and less cyclical incomes, these three businesses will materially boost the sustainability, visibility and resilience of Ahmad Zaki’s earnings. Theoretically, a radically changed earnings profile (with enhanced stability) will appeal to a generally still risk-averse market. Also, theoretically, enhanced earnings stability means reduced equity risk premium, translating to higher stock valuation or a re-rating.
A defensive side that is under-appreciated. Ahmad Zaki Resources (Ahmad Zaki) is beginning to see the fruit of its labour of having grown some defensive non-construction businesses, i.e. bunkering operation at Kemaman Supply Base, oil palm plantation in West Kalimantan, and the design, build, lease, maintain & transfer (DBLMT) of a teaching hospital for the International Islamic University Malaysia (IIUM) in Kuantan under the Private Finance Initiative (PFI). With their defensive, recurring and less cyclical incomes, these three businesses will materially boost the sustainability, visibility and resilience of Ahmad Zaki’s earnings. Theoretically, a radically changed earnings profile (with enhanced stability) will appeal to a generally still risk-averse market. Also, theoretically, enhanced earnings stability means reduced equity risk premium, translating to higher stock valuation or a re-rating.
Tuesday, February 5, 2013
E&O Berhad - STP2 Is Important And Valuable (OSK)
- Land swap an option for funding solution.
It was reported that the Penangstate government has managed to convince
the concessionaire for the RM8bn integrated road infrastructure
projects by using 110 acres of prime land at Seri Tanjung Pinang 2
(STP2) as payment in lieu. According to the State public works,
utilities and transport committee chairman Lim Hock Seng, the 110-acre
land is worth “several billion ringgit”. The integrated road project,
which is part of the Transport Master Plan, includes a 4.2km bypass from
Gurney Drive and Lebuhraya Tun Dr Lim Chong Eu, a 4.6km bypass between
Lebuhraya Tun Dr Lim Chong Eu and Bandar Baru Air Itam, a 12km-paired
road from Jalan Tanjung Bungah to Teluk Bahang, and the 6.5km
Penang-Butterworth sea tunnel. Out of the four road projects, only the
tunnel will be tolled. To recap, E&O was given the right to reclaim
up to 980 acres by the previous state government, and the company has
already reclaimed 220 acres for STP1.
- STP2 more valuable.
This news is favourable to E&O, as it signals the state’scommitment
to ensure the STP2 project materialise. In other words, the 760-acre
yet-to-be-reclaimed land is an integral part of the solution for the
state to fund the infra works. We understand that the 110 acres (on net
basis) consists of several parcels spread across the entire STP2. From
the state’s perspective, we believe the land will be priced lucratively.
Based on our estimate, assuming as a base-case that a RM2bn payment is
settled via land swap, this would value the STP2 land at RM417 psf,
higher than our conservative market value assumption of RM330 psf in our
RNAV estimate. The GDV of STP2 will therefore be boosted. More
importantly, by owning 760 acres of seafront land, E&O will
strategically be the property price leader in the Penang island market
in future.
- STP2 kicking off post election.
We think the whole process will beaccelerated after the general
election. Reclamation works can be kicked off by end 2013. A public
forum will be called in tandem with the revelation of the development
plan after the poll. Minor adjustments will be made for the final plan
after collecting public feedback.
- Key risks and concerns.
i) delays in approvals and launches; ii) downside inglobal economic
growth; and (iii) natural disaster that may disrupt reclamation work at
STP2 once it is started.
- Earnings growth.Unchanged.
- Valuations. We maintain our Trading Buy call on E&O, with an unchanged fairvalue of RM2.08 at 40% discount to RNAV. While investors’ sentiment over the short term could be negatively affected by the election risk, E&O is worth a closer look once the overhang is clear, given its upcoming catalysts as well as improving fundamentals.
MyEG a top pick on revenue growth (STAR)
Outperform (maintained)
Target price: RM1.34
WE maintain our earnings per share (EPS) forecasts and target price, based on an unchanged 16 times 2014 price-to-earnings (P/E), a 20% premium over our 13.3 times target market P/E given its above-market three-year EPS compounded annual growth rate.
Higher-than-expected revenue growth from new services should catalyse the stock. MyEG is our top pick in the tech sector and also our top small-cap pick.
The stock remains an “outperform”.
Last week, MyEG had the soft launch of its new service, the “foreign workers working permit renewal” or FWWPR.
The company plans to first target three key sectors after the soft launch - construction, plantation and services.
Given the transaction fee of around RM50 per FWWPR, this service has great potential. With 3.5 million foreign workers, the potential market size for this service is around RM175mil annually.
As we factor in a conservative revenue figure of RM10mil from MyEG's FWWPR service in financial year 2014, there is potential to surprise on the upside.
The auto insurance renewal business is a fast-growing business for MyEG. The company is targeting RM150mil premiums in 2013.
MyEG is also looking to penetrate the RM1.5bil foreign workers insurance market.
Commission from foreign workers' insurance premium is around 20%, much higher than the 10% to 15% commission from auto insurance.
We have not assumed any earnings from foreign workers' insurance.
Target price: RM1.34
WE maintain our earnings per share (EPS) forecasts and target price, based on an unchanged 16 times 2014 price-to-earnings (P/E), a 20% premium over our 13.3 times target market P/E given its above-market three-year EPS compounded annual growth rate.
Higher-than-expected revenue growth from new services should catalyse the stock. MyEG is our top pick in the tech sector and also our top small-cap pick.
The stock remains an “outperform”.
Last week, MyEG had the soft launch of its new service, the “foreign workers working permit renewal” or FWWPR.
The company plans to first target three key sectors after the soft launch - construction, plantation and services.
Given the transaction fee of around RM50 per FWWPR, this service has great potential. With 3.5 million foreign workers, the potential market size for this service is around RM175mil annually.
As we factor in a conservative revenue figure of RM10mil from MyEG's FWWPR service in financial year 2014, there is potential to surprise on the upside.
The auto insurance renewal business is a fast-growing business for MyEG. The company is targeting RM150mil premiums in 2013.
MyEG is also looking to penetrate the RM1.5bil foreign workers insurance market.
Commission from foreign workers' insurance premium is around 20%, much higher than the 10% to 15% commission from auto insurance.
We have not assumed any earnings from foreign workers' insurance.
Friday, February 1, 2013
未来盈利料将强稳 立通集团超越大市 (光华）
二零一三年一月三十一日 晚上六时二十五分
它说，随着最近大马通讯及多媒体委员会，颁发一份总值8250万令吉在沙巴为期3年的USP项目合约后，该综合电讯方案服务供应商有望获得一个正面的盈利贡献。
它说，在其10年的资源共享费协议下，该公司还预计将会拿到一笔可观的资源共享费用，以及从明讯取得一系列的经常性收入。
该研究机构表示，与明讯签订的协议可为立通集团提供巨大的协同效应，并且能够使用明讯的网络，以及通过合并2.6千兆赫频谱后推出数据服务，加上拥有一个显著的3亿9000万令吉资本开支储备，应可应付我国人口的50％。
它说，立通的短期催化剂主要由USP项目和频谱资源共享费用所支持，而其未来盈利有可能依靠争取到更多的USP项目，以及胥视明讯在推广4G服务上的进取程度。
肯纳格说，立通集团现正招投标政府总值约5亿令吉的合约以专注多项USP计划。
该公司的历史平均投标成功率介于10至20％。
该证券行给予立通集团“超越大市”评级，并将目标价订在56仙。
Subscribe to:
Posts (Atom)