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RHB Research Neutral on UMW, fair value unch at RM13.15
CIMB Research: Catcha Media severely undervalued
KLCI opens higher, IOI Corp, Genting up

RHB Research Neutral on UMW, fair value unch at RM13.15

Posted: 16 May 2013 06:59 PM PDT

Published: Friday May 17, 2013 MYT 9:59:00 AM

KUALA LUMPUR: RHB Research is maintaining its Neutral recommendation on UMW Holdings with an unchanged fair value of RM13.15 after the latest corporate development involving the proposed listing of its oil and gas (O&G) subsidiary.

It said on Friday UMW would transfer the offshore drilling business and certain companies in the oilfield services division under UMW and its subsidiaries to UMW-OG. The listing would be by the fourth quarter of 2013.

UMW-OG is involved in the upstream sector of the O&G industry, providing offshore drilling and oilfield services, including engineering and maintenance services.

RHB Research said the listing company would only include UMW's profitable core oil and gas (O&G) businesses in offshore drilling and oilfield services while the unprofitable, non-core loss making O&G businesses would be retained in UMW.

The initial public offer (IPO) involves 843.18 million UMW-OG shares or 39% of the enlarged capital of UMW-OG. UMW will offer for sale 231.38mil UMW-OG shares and a public issue by UMW-OG of 611.8mil new shares. UMW will end up with a 61% stake in UMW-OG after the IPO.

It said UMW management would hold a briefing for analysts later Friday.

CIMB Research: Catcha Media severely undervalued

Posted: 16 May 2013 06:30 PM PDT

Published: Friday May 17, 2013 MYT 9:31:00 AM

KUALA LUMPUR: CIMB Equities Research said Catcha Media is severely undervalued as it trades at less than the value of its stake in iCar Asia Ltd.

The research house said on Friday the Australia-listed iCar Asia is Asean's top online auto classified portal.

"This attributes zero value to the advertising and e-commerce businesses and investors are getting them for free. "Our target price of 96 sen a share is based on a bottom-up sum-of-parts (SOP) based methodology, which implies an upside of 45%," it said.

CIMB Research said its valuation was transparent as 58% of its SOP value is derived from iCar Asia Ltd's market cap on the Australian Stock Exchange.

"Catcha Media has been overlooked and appreciation of its business and outlook is a catalyst," it said.

Listed on the ACE Market of Bursa Malaysia in 2011, the stock has languished, now 30% below the IPO price, due to the different media platforms in its stable that appear unrelated.

KLCI opens higher, IOI Corp, Genting up

Posted: 16 May 2013 06:15 PM PDT

Published: Friday May 17, 2013 MYT 9:16:00 AM

KUALA LUMPUR: Malaysia's blue chips rose at the start of trade on Friday, on mild buying interest in UMW, Hong Leong Bank, IOI Corp and Genting Bhd as investors shrugged off the previous day's dismal performance.

At 9am, the FBM KLCI was up 2.12 points to 1,768.84. Turnover was 28.58 million shares valued at RM10.77mil. There were 78 gainers, 41 losers and 95 counters unchanged.

BIMB Securities Research was cautious on the outlook for the market and pegged the immediate support for the index at 1,760.

"The KLCI was down 16.31 points to 1,766.72 as the profit taking mode has been triggered. Judging from the selling intensity yesterday, we reckon the downtrend to persist today as market sentiments may have been negative," it said.

BIMB Research said investors deemed the US below par economic data as reasons to lock in profits after registering multi-level highs recently.

It added the selling was also fuelled by statement that "the Feds may reduce the monthly QE asset buying as early as this summer".

At Bursa Malaysia, UMW was the top gainer, up 18 sen to RM14.16 with 100 shares done while HL Bank gained 10 sen to RM14.10 and IOI Corp six sen higher at RM5.13.

Genting and Ambank added four sen each to RM10.62 and RM7.19.

Kredit: www.thestar.com.my

Khamis, 16 Mei 2013