The Star Online: Business
The Star Online: Business |
- Affin Reseach maintains "Buy" on Sunway, target price RM4.01
- KLCI opens three points lower on China's GDP announcement
- Affin Research maintains "Buy" on SapuraKencana
| Affin Reseach maintains "Buy" on Sunway, target price RM4.01 Posted: KUALA LUMPUR: Affin Research is maintaining its "Buy" rating on Sunway Bhd with an adjusted target price of RM4.01 from RM4.66 and view Sunway as an attractive proxy to Iskandar. "Key re-rating catalysts are stronger-than-expected property sales, further news flow on private investment in Iskandar and the listing of Iskandar Waterfront Holding," it said. It said Sunway's proposed rights issue went ex-date last Thursday and the trading of the rights will commence on Tuesday. 'To recap, Sunway had in April 2013 proposed to undertake a 1-for-3 rights issue (RM1.70 per right share), of which the proceeds raised will be used to repay borrowings and fund working capital. "Under the proposal, Sunway will issue up to 568.7 million of rights share, depending on the numbers of ESOS and warrant conversions. Based on its issued share base of 1.29 billion shares, we estimate Sunway will raise RM732.5mil from the issuance of 430.9 million new shares," it said. Affin said it is an important exercise to strengthen the group's balance sheet, thereby in a stronger position to fund its future capex program, where Sunway currently has the highest gearing among developers under the Affin's coverage. "Sunway achieved a weaker but commendable first half 2013 property sales of RM550mil, a 18.4% drop on-year. The group's first half year's property sales was, in our view, commendable considering Sunway did not launch any new projects in first half 2013," it said. It added moving into the second half of 2013, Sunway has lined up over RM1bil worth of domestic property launches and expects the group's property sales to pick up strongly. |
| KLCI opens three points lower on China's GDP announcement Posted: KUALA LUMPUR: The Malaysian bourse kicked off Monday more than three points lower as investors are jittery on China's announcement of its second quarter gross domestic product today, which is expected to direct the market movement. At 9.06am, the FBM KLCI fell 3.16 points to 1,782.49. Turnover was 56.06 million valued at RM34.474mil. There were 110 gainers, 69 losers and 121 counters unchanged. HwangDBS Vickers Research said there is a chance for the key FBM KLCI to pull away a bit more from the 1,785 resistance line today. "On the chart, the benchmark FBM KLCI may be making its way towards the psychological mark of 1,800 anytime soon. "Over on Wall Street last Friday, major US equity bellwethers ended between flat and +0.6% amid expectations that the Federal Reserve would maintain its monetary stimulus policy," it said. Reuters reported Asian stocks were flat on Monday even after another robust performance on Wall Street, while commodities and major currencies were subdued as investors kept to the sidelines ahead of fresh economic data from China. China's GDP growth is expected to have slowed to 7.5% from 7.7% in the second quarter on a year earlier, as weak overseas demand hit output and investment. At Bursa Malaysia, blue chips were the losers with Sime Darby down 12 sen to RM9.38 and AFG 10 sen to RM5.45. Axiata lost six sen to RM6.76 and Maxis four sen to RM6.81. Puncak Niaga rose 13 sen to RM2.44, Kumpulan Darul Ehsan seven sen to RM1.76 and TimeCom five sen to RM3.95. |
| Affin Research maintains "Buy" on SapuraKencana Posted: KUALA LUMPUR: Affin Research is maintaining its "Buy" call on SapuraKencana Petroleum Bhd (SKP) with an unchanged target price of RM4.62 for its strong earnings growth, strong management track record, integrated business model, extensive oil and gas asset base and growing global footprint. It said SKP announced that its wholly-owned subsidiary, Crest Tender Rigs Pte Ltd has been awarded a contract for the provision of tender assist rig services by PTTEP International Limited. "PTTEP intends to use SKP's tender assist rig SKD T-9 for its Zawtika development drilling campaign offshore Myanmar. "The contract value is US$40mil (RM128mil), commencing July 2013 for a period of 300 days," it said. However Affin said it is neutral on the contract win as the daily charter rate of US$133,300 (RM423,294) is comparable to the previous charter rate of US$132,000 (RM419,166), of which, Petronas Carigali was the client. |
| You are subscribed to email updates from Business News To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
0 ulasan:
Catat Ulasan