Drb-hicom

*DRB-HICOM (DRB MK, BUY, TP: MYR2.77)*
A New Dawn
Company Update
DRB-HICOM’s (DRB) binding heads of agreement with Zhejiang Geely (Geely) in respect of the sale of a 49.9% stake in Proton, marks a new beginning for the beleaguered national auto maker. Geely would pursue its expansion into ASEAN markets through Proton, which would be able to leverage on Geely’s advanced technology, business network and global best practices. DRB would be able to separately monetise non-core assets extricated from Proton including land, businesses and concurrent sale of Lotus. DRB expects to conclude the definitive agreement by July. After factoring in the additional value of extricated assets and the Government’s partial reimbursement of R&D costs in our SOP estimate (including 10% holding company discount), we raise our TP to MYR2.77 (from MYR1.83, 65% upside). Upgrade to BUY (from Trading Buy).

Rhb buy call

Today RHB *BUY* call based on Result review :
*Malayan Banking* (MAY MK, BUY, TP: MYR10.40)
*Kossan Rubber Industries* (KRI MK, BUY, TP: MYR7.50)
*Tong Herr Resources* (THR MK, BUY, TP: MYR4.86)
*Lion Industries Corp* (LLB MK, BUY, TP: MYR1.47)
*Datasonic Group* (DSON MK, BUY, TP: MYR2.07)
*AEON Co M* (AEONMK, BUY, TP: MYR2.97)
*OCK Group* (OCK MK, BUY, TP: MYR1.05)

Top Story

*Telekom Malaysia* (T MK, BUY, TP: MYR7.70)
1Q17 results were slightly ahead, at 27-28% of our/consensus estimates, but expect opex to increase in subsequent quarters from new services. The new leadership/management team (all home-grown) has its work cut out for them, with investors likely to keep a close tab on execution. We expect Telekom Malaysia’s (TM) core earnings to grow at a steady FY17-19 CAGR of 3%, supported by the continued growth of its internet/data segments (55% of revenue). Maintain BUY with revised DCF TP of MYR7.70 (from MYR7.50, 20% upside).

*UMW Holdings* (UMWH MK, NEUTRAL, TP: MYR5.56)
UMW Holding’s (UMW) 1Q17 results were slightly below expectations, dragged by higher-than-expected losses at UMW Oil & Gas (UMWOG). Its core businesses performed within expectations although there were still some residual losses at its non-core oil & gas businesses – this is despite having taken impairments in 2016. Pending approvals from the High Court, we expect the distribution of UMWOG shares to be completed by July. We tweak our SOP-derived TP to MYR5.56 (from MYR5.48, 6% downside) and reiterate our NEUTRAL call on the stock. UMW looks close to being fairly valued, with the core business trading slightly above the peer average.
 

*IOI Properties*(IOIPG MK, BUY, TP: MYR2.57)
Expect Stronger Earnings In 4Q
IOI Properties’ 3QFY17 (Jun) earnings were hit by the additional buyer stamp duty with interest (ABSD) charges arising from the Trilinq project. We expect 4QFY17 results to be stronger, as the remaining unsold units would have a full impact on earnings once they are sold. The project was completed in April. Full-year sales are to likely reach around MYR2.3-2.5bn. We maintain our BUY rating and MYR2.57 TP (24% upside)
 

*Eastern & Oriental* (EAST MK, TRADING BUY, TP: MYR2.37)
Eastern & Oriental’s (E&O) 4QFY17 (Mar) results were above expectations, mainly due to the sale of retail area in London. While new property sales in FY18 are likely to be flat, Seri Tanjung Pinang 2 (STP2) would continue to be the potential driver for share price. As the reclamation at STP2A is on track to be completed by Jun 2018, E&O would be able to recognise the bulk of the land sale in FY19, thereby boosting its earnings. A second investor is also likely to enter in mid-2018. We maintain our TRADING BUY call and MYR2.37 TP (29% upside).

*Ta Ann Holdings* (TAH MK, NEUTRAL, TP: MYR3.67)

Ta Ann Holdings’ (Ta Ann) 1Q17 results were in-line with our and consensus’ expectations. While the plantation segment continues to be the group’s largest earnings contributor, we see downside risks in the form of down-trending CPO prices in 2H17F. On the log front, although log prices are holding up, the group is in the midst of appealing for an increase in export quota to 40% in order to offset the expected sharp decline in log production volumes going forward. The group’s plywood segment saw a large improvement, with reported segmental PBT of MYR5.8m vs MYR2m in the previous quarter. Maintain our NEUTRAL call and TP of MYR3.67 (5% upside).

Source : RHB RESEARCH INSTITUTE

A&M Realty - Carey That Gem Now!

When I talk about A&M is when the price around 0.80 to 1.00.

Now, Investment Bank start talking about it when price now 1.7X.

Anyway, is still not too late for you to enter at current price as I foresee the great value release in future. Think about you're a property investor, you want to buy a house, you can choose to buy a house or you can choose to buy a stock with business selling house :)

Below is the Kenanga talk with TP 3.00 :). Can you believe it? I'm supporting this.

Source  :  KENANGA
Stock  :  A&M       Price Target  :  3.00      |      Price Call  :  BUY
        Last Price  :  1.72      |      Upside/Downside  :   +1.28 (74.42%) 
We initiate coverage on A&M with an OUTPERFORM call and TP of RM3.00 based on valuation of 57% discount to its SOP of RM7.00. We like the company for its healthy margins, light balance sheet, strong new sales, earnings growth, and its future catalyst, i.e. Pulau Carey that is set to ride on the potential port development project undertaken by SIME and MMC. We estimate FY17-18E sales growth of 195%-29% while earnings to grow by 33%-30%. Remaining total GDV of RM17.0b with long term visibility of 15-20 years.

A&M’s land banks are mostly located in the Klang Valley (93%) while the remaining is in Melaka and Seremban. In the long term, Pulau Carey would be the main growth driver being the 72% contributor of total remaining GDV. While in the immediate term, its development would be supported by its Klang and Sg. Buloh projects which make up 19% of its total remaining GDV. It also enjoys high project gross margins of 40%-50% thanks to its relatively low land-cost to GDV ratio that ranges between 0.3%-8.8%.

Beneficiary of Pulau Carey play. Pulau Carey is located approximately 70km away from KL City Centre accessible via South Klang Valley Expressway (SKVE) which is approximately an hour’s drive away. The main owner of the Pulau Carey landbank is SIME with c.11,000ha which are mostly plantation landbanks at the moment. Meanwhile, A&M has 1,901.4ac land in Pulau Carey, which currently includes 125.0ac golf-course called Amverton Cove Golf & Island Resort, which has been in operation since year 2013 and is a public golf course. Over the last 2 years, A&M’s Pulau Carey land has been rezoned for residential and commercial purposes from agriculture land status, meaning that their land is immediately developable.

Ramping-up more launches. Going forward, A&M is keen to launch its other projects currently in the pipeline, i.e. Amverton Links, Klang and Amverton Hills, Sg. Buloh. In FY17-18E, the group intends to roll out RM238.6m-RM290.1m worth of launches of which 41%-30% are landed/affordable apartments. This is positive given that the demand for landed residential projects in Klang Valley area remains fairly resilient compared to high-rises.

Light balance sheet allows for a semi build-then-sell model. Currently, the group has a net cash position of RM64.1m with zero borrowings implying that it has very little land holding costs. This allows the group to construct ahead of time RM164.5m (representing completion progress of 68%) out of the RM238.6m worth of planned launches over FY17E which indicates their confidence in the ability to sell their projects. On a positive note, the recognition of sales from these projects would have an immediate and significant impact to its earnings.

Estimates FY17-18E earnings growth of 33%-30% to RM26.7m-RM34.6m. We are expecting its earnings growth to be backed by our estimated sales for FY17-18E of RM111.9m and RM144.1m from its planned launches of RM238.6m and RM290.1m respectively. We believe that our sales estimates are highly achievable given that we have been conservative with our take up rate assumptions of c.50% for its landed residential projects in Sg. Buloh and Klang that are already at an 80% completion stage on plan launch in 2H17.

Initiating coverage with an OUTPERFORM call and TP of RM3.00 based on 57% SoP discount to its SoP of RM7.00 (partial GDV and partial landbank basis). Our applied property RNAV discount of 60% is a tad higher than HUAYANG’s applied discount of 57%. For the small-mid-cap developers within our coverage, the average SOP/RNAV discount applied is at 55% (range of 25%-82%), whereby Greater Klang Valley-based developers discount range is lower at 25%-57% while Johor based developers are higher at 73%-82%. While our TP implies a high FY17-18E PER of 41.0x- 31.6x vs. other small mid cap developers average of 9.1x–7.6x, we also note that its GDV/mkt cap ratio is also high at 26.6x vs. small-mid cap peer’s average of 12.4x. At this juncture, we think that A&M PER may not be the best basis of comparison to peers given its superior earnings growth of 33%- 30% in FY17-18E, coupled with its huge landbank size and exceptionally long visibility of 20-years. Our SOP is also conservative as 36% of its total landbank is value on land rather than project value basis

Mphbcap: fight back

Today is a big win after 2 days attacked by  panic sellers. I saw a road block at 1.60 suddenly disappeared and then it started rise up. This is a press down strategy to force you release your stock. Who don't have "tahan" skill will catch by this trap. So, patience will be rewarded.

Mphbcap: a road block to kill contra players

Or someone intention to take profit from yesterday big dropped. The price block at 1.65, and won't think retailers able to take that big portion.

Mphbcap: the beautiful line now damage

"thanks" to the same boss Magnum but nothing to do with business Mphbcap. So, take profit or keep? Or buy more? I'm still collecting some but I am scare it will drop further also. Nevertheless, I still cannot stop myself to buy more as I still on hope with Mphbcap super undervalued price...hehe...

Bpplas: we should be here 1.50!

Still cheap, preparing to top up if it able to stand above 1.50. This is meaningful breakout, mean below 1.50 will become a history.