POS, Kencana, AEON, Petrnonas Gas,

DJ MARKET TALK: OSK Research Starts Pos Malaysia At Buy
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0321 GMT [Dow Jones] OSK Research starts Pos Malaysia (4634.KU) at Buy, with target price of MYR3.52; government approval for hike in postal tariffs from July came earlier than expected, says analyst Ahmad Maghfur Usman. Thinks revision in tariffs, first in 18 years, may result in 11% decline in mail volume in FY10; but, tariff increase will more than compensate for lower mail volume, planned 20% pay rise for postal workers. "We see yields on mail items ultimately jumping 80%, thus boosting total revenue and bottom-line by 38.5% and 174% respectively in 2011," Ahmad Maghfur says. Adds, with improved earnings, Pos Malaysia's gross dividend expected to double to 20 sen by FY11, for a gross yield of 7%. Pos Malaysia +12.2% at MYR3.21.

DJ MARKET TALK:HwangDBS Ups Petronas Gas To Hold; MYR10.60 Target
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0121 GMT [Dow Jones] STOCK CALL: HwangDBS Vickers Research raises Petronas Gas (6033.KU) to Hold from Fully Valued, with higher target price of MYR10.60 vs MYR8.00 previously; upgrade comes after company held briefing to explain recent revision in processing, transportation pricing terms with parent Petronas; cost savings derived from internal gas consumption to reach MYR400-MYR500 million, higher than earlier estimates, says house; adds new structure enables Petronas Gas to take on gas supply from other sources in the future as production from Terengganu fields declines. "We believe new supply might come from the Santos-Petronas LNG project in Australia, which is expected to come on stream in 2013." Stock trading at 17.2X 2011 PE vs 18.1X for regional peers. Untraded so far today, ends down 0.1% at MYR9.89 yesterday. (benjamin.low@dowjones.com)


DJ MARKET TALK: OSK Research Starts AEON Credit Malaysia At Buy
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0144 GMT [Dow Jones] STOCK CALL: OSK Research starts AEON Credit Malaysia (5139.KU) at Buy, with target price of MYR4.95. Notes AEON Credit, which provides payment plans for purchases of consumer durables, achieved revenue and earnings CAGR of 27% and 57% respectively in past 2 years, while keeping non-performing loans at under 2%; company also had profit margin of 23% and 35%, with high net interest margin of above 19% in past 2 years; analyst Lim Mei Ching says earnings momentum on track with fundamentals still solid. "Overall, the group is poised for organic growth on the back of a bigger clientele, improved consumer spending and rising demand for micro-credit financing," says Lim. AEON Credit untraded so far; ended +0.3% yesterday at MYR3.93.


DJ MARKET TALK: Pos Malaysia +11.9% On Postal Rate Hike
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0302 GMT [Dow Jones] Pos Malaysia (4634.KU) +11.9% at MYR3.20 after Malaysian government announces first increase in domestic postal rates in 18 years, to be effective July 1. AmResearch estimates Pos' EPS to be boosted by 168% in FY10, 60% in FY11, while EBITDA margins improving to 23% from 15% currently. "However this is still significantly lower than Singapore Post's EBITDA margin of 36%," says AmResearch. Adds, impending sale of Khazanah's 32.2% stake in Pos would now be more certain with the new tariff rates. Keeps Buy call, raises target to MYR3.80 from MYR2.30 previously; stock hit fresh 3-year high of MYR3.22 earlier. .


DJ MARKET TALK: OSK Research Starts Pos Malaysia At Buy
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0321 GMT [Dow Jones] OSK Research starts Pos Malaysia (4634.KU) at Buy, with target price of MYR3.52; government approval for hike in postal tariffs from July came earlier than expected, says analyst Ahmad Maghfur Usman. Thinks revision in tariffs, first in 18 years, may result in 11% decline in mail volume in FY10; but, tariff increase will more than compensate for lower mail volume, planned 20% pay rise for postal workers. "We see yields on mail items ultimately jumping 80%, thus boosting total revenue and bottom-line by 38.5% and 174% respectively in 2011," Ahmad Maghfur says. Adds, with improved earnings, Pos Malaysia's gross dividend expected to double to 20 sen by FY11, for a gross yield of 7%. Pos Malaysia +12.2% at MYR3.21.



DJ MARKET TALK: Maybank Research Rates Kencana As Accumulate
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0328 GMT [Dow Jones] STOCK CALL: Maybank Research rates oil and gas services provider Kencana Petroleum (5122.KU) as Accumulate based on charts. "Kencana recently made a Wave 4 low in February 2010 and is now on its Wave 5 uptrend," says chartist Lee Cheng Hooi; adds stock price went above its 19- and 50-day moving average, confirmed by positive crossovers on its firm technical indicators. Thinks stock has great potential to reach its stipulated resistance levels of MYR1.72, MYR1.81 and target areas of MYR1.83, MYR2.11. Tips support at MYR1.67, then areas MYR1.46 with stop-loss at MYR1.44. Stock last down 0.6% at MYR1.66

Summary

*DJ Petronas Gas Raised To Buy From Hold By AmResearch
*DJ Pos Malaysia Target Lifted To MYR3.80 From MYR2.30- AmResearch
*DJ Proton Target Upgraded To MYR6.30 From MYR5.50 By AmResearch
*DJ Telekom Target Raised To MYR3.90 From MYR3.25 By AmResearch
*DJ Telekom Malaysia Upgraded To Buy From Hold By AmResearch
*DJ Unisem Target Lifted To MYR3.30 From MYR2.68 By Affin Research

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