Technical | Fundamental Analysis Discussion Stocks Listed In Bursa

Monday, May 24, 2010

PLUS, Airport, WCT, Sime Darby, Dayang

DJ MARKET TALK:PLUS May Rise On Better 1Q;Outlook Positive-Trader

0000 GMT [Dow Jones] PLUS Expressways (5052.KU) may rise, with trader tipping stock may test MYR3.39 (30-day moving average) vs Friday's close at MYR3.34 (down 0.9%), after company says 1Q net profit +7.4% on-year at MYR299.1 million; revenue +10.2% on-year at MYR813.2 million. Toll highway concessionaire says traffic volume growth in 1Q in line with economic recovery projected for 2010; "we are confident that the group will be able to sustain the performance as achieved last year," says Managing Director Noorizah Hamid. Trader says annualized earnings largely inline with expectations; "the Malaysian economy is expected to grow at least 6% this year, and this will be translated into stronger traffic volume for PlUS' highways... the outlook remains positive," trader says.

DJ MARKET TALK: HwangDBS Keeps Buy On PLUS; MYR4.00 Target

0147 GMT [Dow Jones] STOCK CALL: HwangDBS Vickers Research maintains Buy on PLUS (5052.KU), with unchanged target price of MYR4.00; this after toll highway operator reported in-line 1Q earnings. House says company on track to beat its 2010 key performance indicators of 5% revenue growth, ROE of 18%; management expects 2010 traffic volume to grow 3%-4%, analyst Chong Tjen-San says. "In more volatile times, PLUS is a safe haven with its strong free cash flows (5% dividend yield) and government backing," Chong says. Stock flat at MYR3.34

DJ MARKET TALK: OSK Downgrades Malaysia Airports To Neutral

0131 GMT [Dow Jones] STOCK CALL: OSK Research downgrades Malaysia Airports (5014.KU) to Neutral from Trading Buy, cuts target price to MYR4.80 from MYR5.50; says speculation airport operator may raise funds for new low cost carrier terminal project through bond sale instead of equity sale may be considered a disappointment as investors had earlier bought shares in Malaysia Airports in hopes that the company would be offering new shares at attractive prices. OSK says broader market weakness may also weigh on Malaysia Airports shares; "Therefore, we are applying a less aggressive valuation of 14X vs 16X FY10 EPS previously." Malaysia Airports untraded; stock ended 2.8% lower at MYR4.81 Friday.

DJ MARKET TALK: WCT Down 0.8%; Opportunity To Buy - Maybank

0240 GMT [Dow Jones] WCT (9679.KU) down 0.8% at MYR2.55 after builder reports 11% on-year decline in 1Q net profit; results within expectations, analysts say. Maybank Investment Bank says recent share price weakness is opportunity for investors to accumulate as company's earnings prospects for year remain bright, underpinned by company's MYR2.8 billion orderbook; "We expect earnings uptrend in the subsequent quarters and retain our forecast for a 15% net profit growth in 2010," Maybank says, citing pick-up of activity in key jobs such as new Doha airport, Malaysia's low cost carrier terminal; Maybank maintains Buy call, with unchanged target price of MYR3.40.

DJ MARKET TALK: Dayang May Rise On MYR150.9M Petronas Orders

2339 GMT [Dow Jones] Dayang (5141.KU) may rise after company says wholly-owned unit Dayang Enterprise Sdn. Bhd. awarded MYR150.9 million worth of work orders by upstream player Petronas Carigali; dealer tips stock may rise to MYR1.84 (10-day moving average) vs Friday's close at MYR1.80 (+2.3%). Works for provision of hook-up, commissioning of Petronas Carigali's facilities, to be completed within 6-12 months. Company says contract will contribute positively to 2010 earnings. Dealer says although stock rose Friday before the deal was announced, it may post further gains; "this is a good-sized contract that will be a nice boost to the bottom line... it will spur more buying interest," dealer says. Dayang posted 2009 full-year net profit of MYR43.5 million on revenue of MYR197.0 million.

DJ MARKET TALK: Sime Down 5.2% On Energy Losses; MYR7.50 Eyed

0206 GMT [Dow Jones] Sime Darby (4197.KU) down 5.2% at MYR7.66, lowest in 10 months; conglomerate has said its fiscal 3Q results, due May 27, will include MYR964 million in losses from its energy projects; dealers say stock extending declines on concerns Sime may need to make further provisions as an internal probe still ongoing. "Until the investigations are completed, we cannot rule out the possibility of further provisions in the coming quarters," dealer says; tips stock to stay in downtrend near-term, targeting MYR7.50 psychological support.

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1 comment:

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