The Star Online: Business
The Star Online: Business |
- Public Bank, Maybank lead KLCI higher
- Alliance Research upgrades Tenaga to Trading Buy, TP RM9.52
- Maybank KE Research maintains Buy on BIMB, TP RM4.60
| Public Bank, Maybank lead KLCI higher Posted: 26 Jun 2013 06:13 PM PDT KUALA LUMPUR: Fund nibbling of bank stocks including Public Bank and Maybank pushed the FBM KLCI slightly higher on Thursday. At 9am, the FBM KLCI was up 2.14 points to 1,742.90. Turnover was 10.60 million shares valued at RM7.58mil. There were 82 gainers, 15 losers and 57 counters unchanged. M&A Securities Research said its year-end target for the KLCI in 2013 was 1,838. "We recommend investors to continue investing as we expect bright spots from the US and Japan economies. The expected steady recovery in US and Japan economies will shore up sentiment in the global equity market and will be a catalyst for the market to reaccelerate in the near term," it said. M&A Research recommended investors to continue investing in fundamentally strong blue chips counters with attractive valuations especially the Economic Transformation Proramme related sectors. It has an Overweight call on finance, construction and oil and gas sectors. Public Bank added 10 sen to RM16.78 and Maybank six sen to RM10.14. GAB was the top gainer, adding 12 sen to RM19.20 while glove maker Top Glove recouped part of Wednesday's losses to add six sen to RM6.11. UEM Sunrise extended its gains, adding six sen to RM3.02 while Kimlun rose six sen to RM2.03 after its unit secured a contract in Singapore to supply its concrete products for the island republic's tunnel project. Among the decliners were Tasek, down 36 sen to RM15.62, UMW 12 sen to RM14.18 while among plantations, KL Kepong fell eight sen to RM21.02 and Sime Darby three sen to RM9.44. |
| Alliance Research upgrades Tenaga to Trading Buy, TP RM9.52 Posted: 26 Jun 2013 06:01 PM PDT KUALA LUMPUR: Alliance Research has raised its earnings outlook for Tenaga Nasional by 2% and upgraded it to a Trading Buy with higher target price of RM9.52. It said on Thursday gas shortages to the power sector are in its final days with the Melaka regasification terminal set to commence soon and Tenaga will no longer be burdened by the excessive use of alternative fuel. "We expect higher coal cost in 2H, but still lower on a full year basis. With the 13GE over, risk of sector reform delays has dissipated. "On Tenaga's bid for Bord Gais, we think competition is stiff from other global heavyweights," it said. Alliance Research said Energy Commission data showed that gas shortages have returned in 3QFY13 averaging -191 mmscfd. This was worse off than the -19 seen in the preceding quarter and -122 in 3QFY12. "Judging from the gas shortfall numbers, we estimate the generation mix from alternative fuel (oil and distillates) to come in at 10.9% in 3Q (2QFY13: 1.1%, 3QFY12: 7.1%)," it said. Nevertheless, the research house believed that gas shortages faced by the power sector were in its final days as the Melaka regasification terminal was ready to start. Petronas received its first spot LNG shipment at the Melaka RGT last month from Nigeria LNG Ltd's Bonny Island terminal. The regasification terminal was expected to provide an additional 250 mmscfd of gas to the power sector. This incremental sum would be sufficient to make up for the average quarterly shortfall witnessed since 1QFY12 ranging from -19 to -191 mmscfd. Alliance Research said Tenaga should see its generation mix from alternative fuel fall back to its usual less than 1% from FY14 (FYE: August) onwards. |
| Maybank KE Research maintains Buy on BIMB, TP RM4.60 Posted: 26 Jun 2013 05:42 PM PDT KUALA LUMPUR: Maybank KE Research is maintaining its Buy recommendation on BIMB Holdings with a sum-of-parts target price of RM4.60. It had on Thursday projected an above-industry three-year net profit CAGR of 14% for Bank Islam, 12% at the BIMB group level, and a further catalyst is BIMB's proposed purchase of the 49% stake in Bank Islam. "While Bank Islam's personal financing (PF) portfolio has been expanding rapidly, it has to be emphasised that PF is not just what Bank Islam is about. PF accounts for just 31% of its total portfolio and financing growth has been augmented by expansion in its housing, auto and commercial sector portfolios. Our SOP-derived TP of MYR4.60 is maintained," it said. Maybank Research said its channel checks with Bank Islam, MBSB and Bank Rakyat branches confirm that Bank Islam's package personal financing (financing under the salary deduction scheme to government employees) eligibility criteria are more stringent than that of its peers in terms of the minimum salary, maximum tenure and debt service ratio requirements. Bank Islam's median personal financing debt service ratio (DSR) is just 49% with an average tenure of seven to eight years. "Put into perspective, personal financing accounts for just 31% of Bank Islam's total financing vs. 69% for MBSB and 79% for Bank Rakyat. "While this segment grew at a rapid annualised pace of 30% in 1Q13, Bank Islam added only RM152mil worth of personal financing per month in 1Q13 vs. RM750mil for MBSB and RM327mil for Bank Rakyat," said the research house. |
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