The Star Online: Business
The Star Online: Business |
- Hong Leong Capital slumps to 3-wk low ahead of Aug 12 suspension
- CIMB Research maintains Neutral on Malaysia banks
- CIMB Research maintains Outperform on Gamuda, TP RM5.77
| Hong Leong Capital slumps to 3-wk low ahead of Aug 12 suspension Posted: 27 Jun 2013 06:42 PM PDT KUALA LUMPUR: Shares of Hong Leong Capital Bhd (HLCap) fell to a three-week low of RM5.92 early Friday ahead of its suspension on Aug 12 as it does not meet the public spread. At 9.32am, it was down 52 sen to RM5.92, the lowest since June 7. There were 38,900 shares done at prices ranging from RM5.92 to RM6.12. The FBM KLCI was up 10.99 points to 1,762.56. There were 163.42 million shares done valued at RM171.87mil. There were 259 gainers, 62 losers and 143 counters unchanged. StarBiz reported the exercise of stock options by the head of Hong Leong's investment bank, Lee Jim Leng, had led to the free float of HLCap's shares dipping below the 10% threshold. As a result of the HLCap public shareholding spread hitting 9.63% as at Wednesday. HLCap has said that its shares would be suspended on Aug 12, which amounts to 30 market days post the event. Lee acquired one million Hong Leong shares as a result of exercising her stock options on June 19. |
| CIMB Research maintains Neutral on Malaysia banks Posted: 27 Jun 2013 06:25 PM PDT KUALA LUMPUR: CIMB Equities Research remainS Neutral on Malaysian banks on concerns over margin compression and an upturn in credit costs. "However, price-to-earnings (P/E) valuations are undemanding at 11.5 times for CY14 while CY14 dividend yields are fairly attractive at 4%. Maybank is still our top pick," it said on Friday. CIMB Research also said that feedback from banks showed Bank Negara Malaysia (BNM) had yet to curb financing under the developer interest-bearing scheme (DIBS). "Our channel checks with banks suggest that BNM has not given any directive to banks to stop DIBS but has requested information from them for study. Banks shared that DIBS financing accounts for up to 3% of their existing property loans and 5-12% of new property loans," it said. CIMB Research said any discontinuation of DIBS would be negative for the banks though the impact should not be significant. Residential mortgages have been contributing 3.5 percentage points to 3.7 percentage points to industry loan growth of 10%-13% since Jan 12. "Assuming that 10% of the new loans disbursed are for DIBS, a curb of this scheme would only bring down loan growth by 0.3 percentage point to 0.4 percentage point. "This will trim banks' earnings by a similar magnitude. Moreover, we are expecting a slowdown in the growth of residential mortgages (from 12.7% on-year in March 2013) to about 11%-12% on-year due to BNM's measures to tighten consumer lending," it said. |
| CIMB Research maintains Outperform on Gamuda, TP RM5.77 Posted: 27 Jun 2013 06:14 PM PDT KUALA LUMPUR: CIMB Equities Research maintains its Outperform recommendation on Gamuda with a higher target price of RM5.77 from RM5.60. The research house said on Friday it anticipates strong catalysts in the second half of 2013, driven by rapid progress of the Mass Rapid Transit Two (MRT 2). "More land-banking moves are in the pipeline. Gamuda remains our top pick in the big-cap space," it said. CIMB Research said Gamuda's annualised nine-months FY 2013 core profit made up 99% of its full-year forecast and 98% of consensus. "The results are above expectations due to higher interest income. Construction and property remain the core drivers. MRT and Iskandar exposure will push profits to new highs. "We raise our FY13 EPS forecast as we had largely underestimated interest income. Our target price rises as we update for balance sheet items but is still pegged to a 10% RNAV discount," it said. |
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