tag:blogger.com,1999:blog-66288385367085379602024-02-18T20:00:59.128-08:00Denzuke Asian Stock ResearchProfitable Asian Stock Research Reviews And Target PriceDenzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.comBlogger72125tag:blogger.com,1999:blog-6628838536708537960.post-42017126795669261052011-11-03T10:10:00.000-07:002011-11-03T10:10:17.998-07:00Kencana Petroleum BUY Target Price RM3.17 by OSK<br />
Bernama reported that there is no change in Petroliam Nasional Bhd's (Petronas) licensing policy related to companies engaged in Malaysia's upstream oil and gas (O&G) industry. The report said that under the Petroleum Regulation 1974, both local and foreign companies wishing to commence or even carry out any business or services related to Malaysia's O&G upstream operations must apply for a licence from Petronas.<br />
<br />
The clarification was made following The Edge report last week that such a licence may not be required going forward in bidding for local O&G jobs.<br />
<br />
First, we note that Petronas has embarked on a long-term plan to nurture the local O&G service providers, with the first few being Kencana Petroleum Bhd, SapuraCrest Petroleum Bhd and Dialog Group Bhd, which have been awarded marginal oilfields to expose these companies to upstream O&G activities.<br />
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Second, we understand that most of the local O&G service providers currently have spare capacity as O&G activities have slowed compared with before the global economic recession in 2008 when their capacity was mostly tailored to local needs.<br />
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Noting this spare capacity, it may not make economic sense for Petronas to get resources from the non-local O&G services providers whose capacity is mostly built to meet the requirements of their own countries or regions of operation.<br />
<br />
Finally, this licensing requirement does not prevent foreign companies from participating in Malaysia's O&G sector as what is required is a partnership with a local licence holder. In fact, such participation facilitates the transfer of technology and helps enhance the competence of the local companies while at the same time allowing the foreign companies to benefit from the development of the country's resources.<br />
<br />
Our top picks are Kencana ('buy', fair value (FV): RM3.17) and Dialog ('buy', FV: RM3.66). With an improving global economic outlook and the crude oil price having gone back to around US$90 (RM277)/barrel, we believe that O&G activities will gradually pick up, which would then benefit all O&G service providers through better utilisation rates and higher sales/unit or services/hour rates.<br />
<br />
On the local front, we expect the industry to be in for more marginal oilfield developments and the increasing need for brownfield services to boost O&G production while waiting for the commencement of deepwater activities on a large scale after pre-development preparations are completed.<br />
<br />
We gather that the ratio between shallow water and deepwater O&G production is still at 70:30 but over time, the deepwater portion will pick up after all the easy O&G finds deplete.<br />
<br />
Hence, we think Petronas is now preparing the local O&G supporting services providers for marginal oilfield (shallow water) developments first before embarking into the more challenging terrain (deepwater). ' OSK Research, Oct 31<br />Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-82969668040195442672011-11-03T10:01:00.000-07:002011-11-03T10:01:05.064-07:00Rio Tinto BUY Target Price AUD100 by UBS UBS has maintained its “buy” rating and $100 price target for Rio Tinto following the company’s investor review, where management reiterated that it remains bullish on “end user” demand and sees no material signs of slowing.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-16518611659528632852011-07-27T20:44:00.000-07:002011-07-27T20:44:38.319-07:00Malaysia Airports BUY Target Price RM7.55 by Maybank IB ResearchMaintain buy at RM6.50 with revised target price of RM7.55 (from RM7.12): MAHB will release its 2Q11 results tomorrow. The second quarter is seasonally the weakest for the year. Based on the operating statistics published, we expect a core net profit (less foreign exchange translation and all other non-cash items) of RM110.5 million (+24.5% year-on-year [y-o-y], -1.4% quarter-on-quarter [q-o-q]). We maintain our 'buy' call with a higher discounted cash flow-based target price of RM7.55, after imputing for a higher passenger growth of 10% in 2011 (previously 8%). Our new target price offers undemanding 15.2 times 2012 earnings.<br />
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For the first five months of 2011, passenger numbers were higher than expected, with a better mix profile. Growth was 13.3% y-o-y, substantially above management's guidance of 8% growth in 2011. Cargo was down by 2.6% y-o-y, which is in line with the global soft trend. International passengers make up 48.5% of total passengers, a 0.3 percentage point rise y-o-y. These factors will underpin strong profit growth as international passengers pay higher service charges.<br />
<br />
KLIA continues to surprise positively by delivering an impressive 15.7% y-o-y passenger growth (5M 2010: +13.8% y-o-y). If KLIA can maintain this growth momentum for the remainder of the year, it will probably register traffic of 38 to 39 million passengers; thus making it the 25th to 27th busiest airport in the world ' up from 31st in 2010.<br />
<br />
KLIA 2 may face another delay and we think it will be completed in 2013 as opposed to the guided 3Q11. This is not major and is expected for a project of this scale. The cash flow impact is small, but the depreciation charge of KLIA 2 will only commence in 2013 and thus impact our 2012/13 earnings.<br />
<br />
We have tweaked numbers by +0.7%, +14% and -4.3% for 2011 to 2013 after imputing a higher passenger traffic growth and the new estimated KLIA 2 completion date. MAHB is trading at attractive levels compared with global peers: 10.1 times price-to-cash flow ratio (11% discount to peers), 8.9% return on capital (26% higher) and it is lowly geared at 0.39 times against a peer group average of 0.66 times. 'Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-52105697342365099692011-07-27T20:40:00.000-07:002011-07-27T20:52:09.023-07:00Royal Plaza on Scotts Hotel Singapore Promotion 2011<div class="separator" style="clear: both; text-align: center;"><a href="http://www.hotelscombined.com/Hotel/Royal_Plaza_On_Scotts_Hotel_Singapore.htm?a_aid=29500&label=RoyalScotts"><img border="0" height="198" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3Bo-H7-rtGu0Vu1ZFeBSAXd0SKYM_r9h7RpIEtDpk5qk_BnqiLyXl-0dDhVEt83YdeI1zPnqNCCvYi87ZxB5QjwxBGWXN9oeBojR-Jqao8UCGBwIZn-sJXc59Tlh5SdplvYZRCfouwBgk/s400/scotts_singapore.jpg" width="400" /></a></div><br />
Royal Plaza On Scotts Hotel, Singapore<br />
<a href="http://www.hotelscombined.com/Hotel/Royal_Plaza_On_Scotts_Hotel_Singapore.htm?a_aid=29500&label=RoyalScotts" target="_blank">Royal Plaza on Scotts is a 5-minute walk from Orchard MRT Station. Shopping malls like ION Orchard, Takashimaya and Paragon are a 10-minute walk away.</a><br />
<a href="http://www.hotelscombined.com/Hotel/Royal_Plaza_On_Scotts_Hotel_Singapore.htm?a_aid=29500&label=RoyalScotts" target="_blank"> <br />
Modern rooms at the hotel are equipped with air conditioning and a private bathroom with a rainshower and hairdryer. A flat-screen TV and Nespresso coffee machine are included. Room service is available 24 hours.<br />
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Royal Plaza on Scott’s Carousel Restaurant offers a buffet spread of Asian and Mediterranean dishes. Guests can also choose from a variety of drinks at Heat Ultralounge.<br />
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Guests may relax at the sauna or make use of the hotel’s internet lounge. DFS Galleria is located within the same building.<br />
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Singapore Hotel Royal Plaza on Scotts is one of the most popular five stars hotels in Singapore. Strategically located at the heart of Singapore, Royal Plaza on Scotts Singapore Hotel, one of the few 100% smoke-free hotels in Singapore, is known for its prime location with just 3 kilometres from meeting venues of Suntec City, Raffles City and Shenton Way. The Singapore Expo is approximately 20 minutes’ drive away.<br />
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Make full use of the free internet in all 511 rooms using your laptop or mobile to be connected to the world of business and social network. Refresh yourselves in the midst of work with a selection of free mini-bar beverages.<br />
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Searching for a conference venue or meeting rooms? The hotel’s 10 state-of-the-art meeting rooms including Balmoral Hall and Ardmore Suite will meet your needs. The Internet Lounge and Gym is open 24 hours daily just for our guests. Find out more about hotel’s services and facilities.<br />
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With a 1 minute walk to the Orchard MRT station, Royal Plaza on Scotts is surrounded by famous mega shopping malls, such as ION Orchard, Ngee Ann City (Takashimaya), and DFS Galleria providing movie, food and various family entertainment options in Singapore. Unwind by visiting the Singapore attractions such as Universal Studios Singapore, Sentosa Island, The Merlion, Singapore Zoo and Singapore Flyer within 20 minutes of drive.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-30554513702106631212011-07-27T05:03:00.000-07:002011-07-27T05:48:43.497-07:00BToto BUY Target Price RM4.98 by Hong Leong IBBerjaya Sports Toto Target Price RM4.98 with a BUY Rating by Hong Leong Investment Banking.<br />
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<b>Highlights </b><br />
Since BToto launched its new game variant known as 4D Jackpot on 9 June 2011, its sales per draw have been growing rapidly. It recorded a sales of RM982k on its first draw, 35% higher compared to Magnum’s first sales per draw of RM725k. Average is now RM1.6m per draw<br />
Our regression study and analysis suggest that there will be cannibalization on lotto and existing 4D games (but no impact on Magnum 4D Jackpot). However, the impact is marginal (circa RM200k per draw on lotto games).<br />
Hence, we believe that 4D Jackpot has created a “new” market segment on its own and will result in elevated sales level.<br />
With assumption of RM1.3m sales per draw under 4D Jackpot, revenue will increase by an additional RM224.9m or equivalent to 6.1% extra growth.<br />
Drawing from Magnum 4D Jackpot experience, BToto 4D Jackpot sales per draw is expected to stabilize after 6 months and expand at faster rate than existing games.<br />
The above expected change in overall sales mix (or reduction in 4D contribution) is expected to reduce group theoretical prize payout ratio given 4D Jackpot fixed payout of 55% vs. 4D’s variable 64.5%. This will result in elevated but more stabilized profitability and dividend payout.<br />
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Catalysts </b> Additional new sales to boost overall earnings and dividend <br />
Reducing prize payout implies more stable earnings and dividend as well as reduced “hostage” to 4D luck factor.<br />
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Risks </b> Higher-than-expected prize payout ratio. <br />
Pan Malaysia Pools may launch its own 4D Jackpot. <br />
Hike in gaming tax and/or pool betting duty. <br />
<b><br />
Forecasts</b> We are assuming sales growth of 8.6% and 3.6% for FY12 and FY13 . With additional savings for prize payout, we expect FY12 and FY13 EPS to grow at 14.9% and 4.3% yoy<br />
respectively. <br />
<b><br />
Rating</b> BUY<br />
Positives - (1) Strong sales in its newly launched 4D <br />
Jackpot; (2) Only NFO who provides lotto games; and (3) <br />
Highest-yielding stock in the sector. <br />
Negatives – (1) Highly regulated industry; and (2) Prize <br />
payout highly dependable on luck factor. <br />
<br />
<b>Valuation</b> Initiating with a BUY recommendation and TP of RM4.98 based on Discounted Cash Flow (DCF) model with WACC of 8.81% and long-term growth of 2.5%.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-1267006232061973762011-07-27T00:01:00.001-07:002011-07-27T00:01:08.709-07:00KNM BUY Target Price RM2.80 by OSK ResearchOSK Research is maintaining its trading buy on KNM Group with the fair value remaining unchanged at RM2.80.<br />
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KNM is undertaking the refinery/polypropylene and storage projects at Teluk Ramunia, Johor, and the research house said this could be a potentially positive contribution to the existing orderbook.<br />
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"Currently, we believe KNM Group's orderbook is still above RM5 billion while the tenderbook is over RM17 billion," OSK Research said.<br />
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KNM announced yesterday that it and Zecon Bhd have entered into two agreements with Gulf Asian Petroleum SB (GAP)for the refinery/polypropylene and storage projects at Teluk Ramunia, Johor.<br />
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The company said it would form a consortium with Zecon Bhd and Korean/Chinese contractors to undertake the engineering, procurement and construction (EPC) of the projects.<br />
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But more information is needed to gauge the financial impact on KNM, according to OSK Research.<br />
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"KNM will need to arrange a sukuk issuance of up to RM1.5 billion to cover the project financing during construction, while GAP will arrange a financial guarantee from a local investment fund of up to RM1.5 billion during the construction period, to be converted into a long-term loan thereafter and a facilitation fund of up to RM300 million," OSK Research said.<br />
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OSK Research believes KNM would have the financial muscle to take up the preliminary investment of RM240 million as its net gearing is still below 1x.<br />
<br />
"Based on its 1QFY11 results, it had net debts of RM534.6 million with total debts of RM1 billion and cash equivalents of RM479.5 million. Hence, this also led to a net gearing of 0.3 times," OSK Research said.<br />
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Although these projects could potentially contribute positively to its FY12-15 earnings, OSK Research said it is keeping the FY12 forecast unchanged for now, pending more financial guidance from management.<br />
<br />
"Also, due to past events, we harbour some doubts on whether the project will take off," it added.<br />
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Other than that, OSK Research believes that securing the project financing itself has some uncertainty given the huge sum needed.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-39461990425631711222011-07-25T09:00:00.001-07:002011-07-25T09:00:58.207-07:00AirAsia BUY Target Price RM4.34 by OSK ResearchOSK Research Sdn Bhd has upgraded its fair value on AirAsia Bhd to RM4.34 from RM3.89 while maintaining its 'buy' call.<br />
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In a research note today, OSK said AirAsia's revenue passenger kilometres (RPK) and passenger carriage for first half of financial year 2011 (1HFY11) remained consistently strong, growing by 16 per cent and 23.2 per cent year-to-date.<br />
<br />
"Considering that 1H is typically the weaker half of the year, AirAsia's numbers nevertheless remained consistently strong despite the fuel surcharge having taking full effect in May," it said.<br />
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It said AirAsia's second quarter earnings were expected to rise further quarter-on-quarter on the back of improving yields due to the fuel surcharge, loan factor and RPK.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-35434291550782403112011-07-13T18:11:00.000-07:002011-07-13T18:11:16.750-07:00Puri Wulandari Boutique Bali Promotion 2011<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSYEUXgAnTqVSTDAbv7K4R-KFf_I9LKd5vZL6WcGGRVw1joJP30tZxLvkH0Ll08Tmvx1-2XyoedK915cmtK__xbz7jhKFlhWq-Wz8cnfmXMdkCxOW6QfWm83cAcp3sBl3b1ep9nqgMtLxz/s1600/puriwulandari.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="274" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgSYEUXgAnTqVSTDAbv7K4R-KFf_I9LKd5vZL6WcGGRVw1joJP30tZxLvkH0Ll08Tmvx1-2XyoedK915cmtK__xbz7jhKFlhWq-Wz8cnfmXMdkCxOW6QfWm83cAcp3sBl3b1ep9nqgMtLxz/s320/puriwulandari.jpg" width="320" /></a></div><br />
<a href="http://www.hotelscombined.com/Hotel/Puri_Wulandari_Boutique_Resort_Bali.htm?a_aid=29500&label=PuriW" target="_blank">Puri Wulandari Boutique Resort & Spa has 34 individual villas. Each unique villa consists of a private swimming pool, an open living room with dining corner, mini bar & fridge, luxurious bathroom with sunken bath, outdoor natural shower and double vanities, his & her private changing room, four posted bed with high mosquito net, king bedding, 29” flat TV with DVD player.<br />
<br />
Puri Wulandari has been chosen to be the only hotel in Indonesia amongst “100 hottest new hot spot” in the world by Conde Nast Traveller Magazine.</a>Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-22322831081254330452011-07-04T06:20:00.000-07:002011-07-04T06:20:11.785-07:00SPH BUY Target Price $4.32 by OCBC Research Singapore Press Holdings (SPH) recently bid S$917m for a 99-year white site beside Jurong East MRT station and came just 5.4% below the top bid. We think management is committed to expanding their retail landlord business and could be interested in three GLS sites in 2H11, or TripleOne and 313@Somerset which are likely to come onto the market. We visited Clementi Mall and found that it has opened for operations smoothly with good foot traffic. Our S$4.32 fair value indicates an upside of 13.4% against the current price of S$3.81. Also, we think the downside is limited by an attractive dividend yield of 7.1%, which is underpinned by a core newspaper segment yielding solid recurrent cash. Upgrade SPH to BUY with a fair value estimate of S$4.32.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-85094115609905709942011-06-29T08:18:00.000-07:002011-06-29T08:18:37.603-07:00Olam BUY Target Price $3.38 by Kim Eng ResearchOlam announced earlier this month that it was raising $740 million through a placement of new shares with an eye on future acquisitions.<br />
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Kim Eng said it views the equity-raising exercise negatively because of the high discount offered, which could be dilutive to minority shareholders.<br />
<br />
However, the brokerage said the share price correction was overdone and it sees a good entry opportunity. Olam management is likely to have identified attractive investment targets and is building up a huge warchest, Kim Eng said.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-83107117437958769782011-06-29T08:16:00.000-07:002011-07-27T05:48:17.208-07:00Kossan BUY Target Price RM3.71 by AmResearchMaintain hold at RM3.14 with revised fair value RM3.71: We are maintaining our 'hold' rating on Kossan with a lower fair value of RM3.71, post a downward earnings adjustment and the rolling forward of our valuation base year from FY11F to FY12F. We continue to peg our valuation to a price-earnings ratio of 10 times FY12F earnings ' at a 30% discount to its 10-year mean.<br />
<br />
Following a recent company visit, we have trimmed our FY11F/13F earnings per share by -7% to -9% after incorporating lower margin assumptions due to further normalisation in margins (1QFY11: -1 percentage point quarter-on-quarter [q-o-q]). We now forecast an earnings before interest, tax, depreciation and amortisation (Ebitda) margin of 16% for FY11F, against 18% previously.<br />
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We understand the upcoming 2QFY11F earnings will likely be flattish on a q-o-q basis. We observe the earnings underperformance mimics the trend seen in the recent results of peers, underpinning our longstanding view that it is too premature to turn constructive on the sector at this juncture.<br />
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While management has attributed it largely to continued lacklustre demand for rubber gloves on minimal inventory holding by customers amid elevated latex prices, our channel checks reveal price undercutting has been rife within the basic natural rubber (NR) gloves segment. However, the impact on Kossan's earnings has been relatively subdued, owing mainly to its more balanced product portfolio mix of 60:40 in nitrile:latex gloves.<br />
<br />
The group's earnings growth will continue to be primarily centred on better-margin glove variants as underpinned by its high utilisation rate of circa 90%.<br />
<br />
We expect earnings contribution from 51%-owned Cleanera HK Ltd to rise from 10% to approximately 14% to 15% of group earnings on the back of increased capacity. Recall, Cleanera is principally involved in the manufacturing of cleanroom products such as masks, wipes and gloves.<br />
<br />
The group has recently completed its US$3.06 million (RM9.3 million) acquisition of Cleanera and management remains confident of achieving a payback of 1.5 years. We expect a more aggressive marketing campaign to result in an increased market share for cleanroom products in China going forward.<br />
<br />
Potential stock re-rating catalysts include: (i) a meaningful easing of the latex price; (ii) better-than-expected 2Q results. 'Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-5785325058449179802011-06-23T23:42:00.000-07:002011-06-29T11:03:17.299-07:00AirAsia Outperform Target Price RM4.10 by CIMB Equities ResearchCIMB Equities Research said AirAsia announced a widely-expected order for 200 A320neo aircraft at the Paris Air Show on Thursday, June 23 for delivery starting 2016.<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjxlNt67O__2ZAF22aUxf83b1LfXnQV3oJK0cSJZJtIpMkpvbtHM_Pk623mykSI4MK6vZtP1tMHW8cgtyCevKQcnOC-a0KKIFKaBf7qJXnOgVGfRZUpkB4TZJidOfvcQRmKL5uqCH8T2uvK/s1600/KencanaPetroleumSetToSoar.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjxlNt67O__2ZAF22aUxf83b1LfXnQV3oJK0cSJZJtIpMkpvbtHM_Pk623mykSI4MK6vZtP1tMHW8cgtyCevKQcnOC-a0KKIFKaBf7qJXnOgVGfRZUpkB4TZJidOfvcQRmKL5uqCH8T2uvK/s1600/KencanaPetroleumSetToSoar.jpg" /></a></div><br />
“The orders are a positive development as the aircraft will be 15% more fuel efficient than the existing A320,” it said on Friday.<br />
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CIMB Research said AirAsia will not overstretch its balance sheet as its Thai and Indonesian associates should be able to take these planes in their own names post listing and AirAsia has the option to dispose of the older model.<br />
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The new planes are also needed to grow its Philippines and future Vietnam operations.<br />
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“We maintain our forecasts, RM4.20 target price (9x P/E) and OUTPERFORM rating as AirAsia’s low operating costs and strong demand put it in the best position to ride out high oil prices and global overcapacity. A potential catalyst is the listing of its two associates,” it said.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-59168718362262526902011-06-23T23:40:00.001-07:002011-06-23T23:40:56.619-07:00Hamilton Hotel Seoul South KoreaHamilton Hotel, Seoul, South Korea - Republic of Korea <a href="http://www.hotelscombined.com/Hotel/Hamilton_Hotel_Seoul.htm?a_aid=29500&label=Hamilton">Hamilton Hotel Seoul in the middle of Itaewon</a>Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-24890665000426166962011-06-23T01:11:00.000-07:002011-06-23T01:11:35.587-07:00Keppel Corp BUY Target Price $14.60 by Credit SuisseCredit Suisse has raised its target price on Singapore’s Keppel Corp (KPLM.SI), the world’s largest oil rig builder, to $14.60 from $14.18 and maintained its outperform rating.<br />
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Keppel has secured $7.1 billion of orders year-to-date and has options for additional rigs worth $2.5 billion, Credit Suisse said, adding that it has raised its 2011 order forecast to S$10 billion from $8 billion.<br />
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Credit Suisse said that it believes there will be a high conversion rate of jack-up rig options into firm contracts, driven by a shift towards more complex wells as well as a need for established drillers to regain market share.<br />
<br />
The brokerage added that Keppel is well-positioned to win orders from Brazilian oil company Petrobras’ tender for 21 rigs due to the Singapore firm’s established operations in Brazil, strong execution capabilities and relationship with Petrobras.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-88459941580511395692011-06-23T01:08:00.000-07:002011-06-23T01:08:10.277-07:00Berjaya Toto BUY Target Price RM5.10 by RHBUpgraded to outperform at RM4.28 with revised fair value of RM5.10 (from RM4.50): In a surprise move, BToto last Saturday launched a new game called 4D Jackpot, which is a combination of a 4D game and a jackpot game, a very similar game to Magnum's 4D Jackpot, which has been performing extremely well since its launch in September 2009. This brings the total number of games BToto has to seven from six. BToto's 4D Jackpot game has five prize categories, with a minimum win of RM2 million for the first prize and RM100,000 for the second prize. The theoretical prize payout ratio (PPR) is 55%, same as its other lotto games. <br />
<br />
Of the 55% prize pool, 55% (plus the upfront RM2 million and any snowballed amount) goes to the first prize, while 10% (plus any snowballed amount) goes to the second prize. As such, the actual payout for the first prize would be 30.25% and for the second prize 5.5%. We estimate the odds for the first prize are one in 16.67 million and for the second prize, one in 1.67 million, which is the same as Magnum's 4D Jackpot game. This game also has a cascading feature where if the Jackpot 1 prize is not won and the jackpot amount is RM30 million and above, then the Jackpot 1 prize money of any amount exceeding RM20 million shall cascade and be added to the Jackpot 2 prize money for the particular draw.<br />
<br />
We believe this is a positive development for BToto given its languishing sales ever since Magnum's new 4D jackpot game was launched. We believe this game could give Magnum a run for its money and boost BToto's sales and profit quite substantially, particularly since this is not a replacement game for any existing games but a new game entirely. As a guide, Magnum's gaming revenue rose by 9.3% year-on-year (or RM281.5 million), while gaming profit before tax (PBT) rose by 55.3% (or RM135.8 million) in FY12/10, which was largely attributed to its new 4D jackpot game. As the market is already used to the mechanics of this type of game, it should take off quite easily while any cannibalisation of its existing 4D sales is not expected to be significant, as was the case with Magnum. <br />
<br />
As for implications on the industry, this could mean that the government is now more open to liberalising the industry, and we would not be surprised if Pan Malaysian Pools (PMP) also gets to launch a similar game soon. This would then be a game changer for whoever the new buyers of PMP are (said to be a consortium of companies including the Genting group), as valuations would have to take this possibility into account.<br />
<br />
Risks: 1) Poor luck factor; 2) Regulatory changes for the numbers forecast operator (NFO) industry to discourage gambling in the country or to allow competitors more outlets and more game variations; and 3) Hike in gaming taxes.<br />
<br />
Our FY04/12-13 forecasts have been raised by 2.2% to 4.9%, but FY04/11 is unchanged. Post-earnings revision, our discounted cash flow-based fair value is raised to RM5.10 (from RM4.50). We raise our recommendation on the stock to 'outperform' (from market perform), as we believe this could be a catalyst for BToto, given the exciting potential and earnings prospects of this new game. ' RHB Research, June 13Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-83687151704468221532011-06-06T11:03:00.001-07:002011-06-06T11:03:56.274-07:00Capitaland BUY Target Price $4.14 by Kim Eng ResearchKim Eng Research in a June 3 research report says: "A consortium comprising CapitaMalls Asia (CMA), CapitaMall Trust (CMT) and CapitaLand has secured a White Site at Boon Lay Way for $969 million, or $1,012 psf ppr.<br />
<br />
"CapitaLand will lend its expertise on the office component while CMA will lead the design for the retail portion. With this acquisition, the CapitaLand group of companies will have a strong foothold in Jurong Gateway, right in the commercial heart of the Jurong Lake District.<br />
<br />
"While the targeted 6% yield on cost for the JG site is attractive, the actual impact on CapitaLand's RNAV is minimal. The asset, when completed, is likely to be eventually monetised and sold to CMT and CCT. We have trimmed our target price to $4.14, pegged at par to RNAV after adjusting for the share prices of the listed subsidiaries. MAINTAIN BUY."Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-62568110267047946792011-06-06T11:00:00.000-07:002011-06-06T11:00:10.969-07:00Global Logistic Properties BUY Target Price $2.71 by UBSUBS Investment Research in a May 31 research report says: "Global Logistic Properties (GLP) reported Q4FY11 earnings of US$49.2 million. Stripping out US$11 million revaluation loss, headline profit was 13.5% higher y-o-y at US$59.8 million, in line with consensus but below UBS estimates.<br />
<br />
"The shortfall was due primarily to higher withholding taxes in Japan, 2.4% weakening of the Yen against the US$ in Q4FY11, and a US$6.4 million foreign exchange loss on Yen-denominated loans. We fine-tune our model to reflect the higher lease ratios in China and update our forex assumptions.<br />
<br />
"On average, we raise our FY2012-2014 earnings estimates by 5.5%. Valuations remain attractive at 1.1x P/B. Price target of $2.71 based on 1x our sum-of-the-parts RNAV estimates. BUY".Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-7618894326103413372011-06-06T10:24:00.000-07:002011-06-06T10:32:40.008-07:00Banyan Tree Hangzhou Summer Nights<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxVpddcee1FoRQH53Io8Ce0g4NQF_shQBAN9FOjpVdLQnldIijryIoJyfhLbRT1YPvWgAfENc4jLx8xJlhMIr4U8H6FMaE7K5zzz32fXhGqUvY0jDlpzg0tmX9xh7OZyAKHVkMxE2byWS9/s1600/btcnhz.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxVpddcee1FoRQH53Io8Ce0g4NQF_shQBAN9FOjpVdLQnldIijryIoJyfhLbRT1YPvWgAfENc4jLx8xJlhMIr4U8H6FMaE7K5zzz32fXhGqUvY0jDlpzg0tmX9xh7OZyAKHVkMxE2byWS9/s1600/btcnhz.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Banyan Tree Hangzhou, China</td></tr>
</tbody></table>Banyan Tree, Hangzhou<br />
<a href="http://www.hotelscombined.com/Hotel/Banyan_Tree_Hotel_Hangzhou.htm?a_aid=29500&label=BTHangzhou" target="_blank">A villa style accommodation, the Banyan Tree Hotel Hangzhou provides guests with such amenities as simple, cultural décor, access to gardens and bamboo groves, a swimming pool, a water terrace, a central fireplace, and modern accommodations.</a>Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-31110984071358298682011-06-05T20:17:00.000-07:002011-06-05T20:17:41.749-07:00MMCCorp BUY Target Price RM3.70 by HwangDBSBuy at RM2.81 with revised target price of RM3.70 (from RM4.05): MMC reported 1QFY11 headline net profit of RM43 million (-56% quarter-on-quarter; +25% year-on-year) which was below our and consensus estimates. Earnings were dragged down by larger losses at Zelan Bhd of RM53 million against RM30 million loss in 1QFY10.<br />
<br />
Operationally, the key divisions did well, as reflected in the 7% y-o-y earnings before interest tax (Ebit) growth to RM627 million. 1QFY11 transport and logistics Ebit jumped 27% y-o-y driven by its port business.<br />
<br />
Pelabuhan Tanjung Pelapas Bhd's (PTP) throughput rose 18% to 1.8 million TEU, while Johor Port's conventional cargo volume and container volume rose 15% and 3% y-o-y. For its energy and utilities division, the overall higher dispatch factor for Malakoff Corp Bhd of 51% in 1QFY11 (against 49% in 1QFY10) and 6% y-o-y higher volume for Gas Malaysia Sdn Bhd drove 1QFY11 Ebit up 22% y-o-y.<br />
<br />
We reduce our FY11 to FY13F profit by between 11% and 17% to prudently reflect continued losses at Zelan, where we factor in liquidated ascertained damages or provisions for its projects in Indonesia and Abu Dhabi.<br />
<br />
We also take into account the recent unfavourable price structure for Gas Malaysia, whose spreads will narrow to RM2.04 to RM2.08 per mmbtu against RM3.95 previously. However, the impact will be offset by higher volume growth and strong TEU growth for PTP.<br />
<br />
We recommend a 'buy' with a lower target price of RM3.70. We drop our target price after factoring in lower discounted cash flow value for Gas Malaysia.<br />
<br />
While the news on Gas Malaysia might throw off valuations for a potential listing, there are other catalysts to look forward to. These are: (i) the expansion of 2,100MW Tanjung Bin coal-fired plant by 1000MW, with MMC being one of two parties short-listed. A decision will be made in 3QCY11; (ii) the RM50 billion mass rapid transit project, we use conservative assumptions in our sum-of-parts valuation; and (iii) higher values for its land in Johor. 'Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-45316642853164137072011-05-31T10:11:00.000-07:002011-05-31T10:11:07.844-07:00OSIM Target Price $2.11 BUY by OCBC ResearchOCBC has cut its target price for Singapore lifestyle products firm Osim International (OSIL.SI), which is best known for its massage chairs, to $2.11 from $2.34 and kept its buy rating.<br />
<br />
OCBC Investment Research cut its target price for Osim to account for a larger share base resulting from the recent exercise of its warrants.<br />
<br />
However, OCBC remains bullish on Osim's growth prospects as its product range should benefit from research and development efforts to boost product innovation.<br />
<br />
"While current economic uncertainty surrounding the EU and U.S. could dampen investor sentiment, we believe that the fundamentals of Osim remain strong and ample growth opportunities exist," said OCBC in a report.<br />
<a href="http://www.amazon.com/Massaging-Chair-uComfort-Massage-Chairs/dp/B001LA1AJ8?ie=UTF8&tag=definedf-20&link_code=bil&camp=213689&creative=392969" imageanchor="1" target="_blank"><img alt="Massaging Chair OSIM uComfort Massage Chairs" src="http://ws.amazon.com/widgets/q?MarketPlace=US&ServiceVersion=20070822&ID=AsinImage&WS=1&Format=_SL160_&ASIN=B001LA1AJ8&tag=definedf-20" /></a><img alt="" border="0" height="1" src="http://www.assoc-amazon.com/e/ir?t=definedf-20&l=bil&camp=213689&creative=392969&o=1&a=B001LA1AJ8" style="border: none !important; margin: 0px !important; padding: 0px !important;" width="1" /> <a href="http://www.amazon.com/OSIM-uSqueez-Lite-Calf-Massager/dp/B002ZFXMSU?ie=UTF8&tag=definedf-20&link_code=bil&camp=213689&creative=392969" imageanchor="1" target="_blank"><img alt="OSIM uSqueez Lite Calf & Foot Massager" src="http://ws.amazon.com/widgets/q?MarketPlace=US&ServiceVersion=20070822&ID=AsinImage&WS=1&Format=_SL160_&ASIN=B002ZFXMSU&tag=definedf-20" /></a><img alt="" border="0" height="1" src="http://www.assoc-amazon.com/e/ir?t=definedf-20&l=bil&camp=213689&creative=392969&o=1&a=B002ZFXMSU" style="border: none !important; margin: 0px !important; padding: 0px !important;" width="1" /><a href="http://www.amazon.com/OSIM-uAstro-Zero-Gravity-Massage-Chair/dp/B003RCIAF0?ie=UTF8&tag=definedf-20&link_code=bil&camp=213689&creative=392969" imageanchor="1" target="_blank"><img alt="OSIM uAstro Zero-Gravity Massage Chair" src="http://ws.amazon.com/widgets/q?MarketPlace=US&ServiceVersion=20070822&ID=AsinImage&WS=1&Format=_SL160_&ASIN=B003RCIAF0&tag=definedf-20" /></a><img alt="" border="0" height="1" src="http://www.assoc-amazon.com/e/ir?t=definedf-20&l=bil&camp=213689&creative=392969&o=1&a=B003RCIAF0" style="border: none !important; margin: 0px !important; padding: 0px !important;" width="1" />Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-2640045769792857702011-05-28T21:08:00.000-07:002011-05-28T21:08:51.012-07:00Petronas Chemicals BUY Target Price RM9.28 by OSK ResearchOSK is upgrading Petronas Chemicals Group's 2012 financial year earnings forecast by 28 per cent based on expectations that current oil prices will sustain, which will, in turn, buoy the prices of chemicals products.<br />
<br />
"Financial year 2011 were above expectations. We are upgrading our financial 2012 earnings forecast in line with the better outlook for the company.<br />
<br />
"We continue to like the company's strong backing from Petronas group, especially in keeping its feedstock prices low, as well as, attractive dividend payout ratio of 50 per cent, which is the highest among its closest peers," it said in a research note today.<br />
<br />
However, it said the company is still subject to uncontrollable factors which included fluctuations in the international price of petrochemical products, global economic conditions and utilisation of its production facilities based on demand.OSK is upgrading Petronas Chemicals Group's 2012 financial year earnings forecast by 28 per cent based on expectations that current oil prices will sustain, which will, in turn, buoy the prices of chemicals products.<br />
<br />
"Financial year 2011 were above expectations. We are upgrading our financial 2012 earnings forecast in line with the better outlook for the company.<br />
<br />
"We continue to like the company's strong backing from Petronas group, especially in keeping its feedstock prices low, as well as, attractive dividend payout ratio of 50 per cent, which is the highest among its closest peers," it said in a research note today.<br />
<br />
OSK maintained a "buy" on the company.<br />
<br />
However, it said the company is still subject to uncontrollable factors which included fluctuations in the international price of petrochemical products, global economic conditions and utilisation of its production facilities based on demand.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-4257937544839474732011-05-28T20:59:00.000-07:002011-05-28T20:59:35.276-07:00KNM BUY Target Price RM3.20 by Maybank IB ResearchKNM Target Price :<br />
RM3.20 by Maybank Investment Banking Research<br />
RM3.43 by ECMLibra<br />
RM3.34 by OSK Research.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-22200012041398491102011-05-27T07:19:00.000-07:002011-05-27T07:19:32.994-07:00Four Seasons Hotel Bangkok Room Rate Promotion<a href="http://www.hotelscombined.com/Hotel/Four_Seasons_Hotel_Bangkok.htm?a_aid=29500&label=FourBKK" target="_blank">Four Seasons Hotel Bangkok - This time-tested luxury hotel combines traditional style Thai architecture, artwork, and beautiful natural gardens, making it one of the most impressive hotels in Bangkok. The Four Seasons Hotel Bangkok is 25 km from the Suvarnabhumi International Airport, and is situated among many shopping venues and business addresses. It is also just a ten-minute walk to Lumpini Park, where guests can enjoy an evening walk or morning jog.</a>Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-32562868629732327502011-05-26T16:41:00.000-07:002011-05-26T16:41:35.491-07:00Hock Seng Lee HSL Target Price RM2.50 by OSK ResearchLast year, HSL managed to secure RM532 million worth of jobs, which marginally surpassed our RM500 million target. This year, management is confident of bagging another RM500 million in new wins, with an upside potential of RM600 million, versus our assumption of a conservative RM400 million. In the near term, HSL may bag two road packages collectively worth RM150 million. It is also eyeing the Tg Manis port extension (RM300 million), Mukah airport extension (RM300 million), an education facility (RM260 million) and a flyover job (RM100 million).<br />
<br />
We understand that the government intends to implement a mass affordable housing project across Sarawak worth RM1 billion. Another RM1 billion has also been allocated for rural infrastructure and utilities. While these jobs are sizeable, they will be broken up into packages worth RM20 million to RM30 million each, and we expect HSL to win some.<br />
<br />
The management indicated that Phase 2 of the Kuching Wastewater Project is now 30% complete and on track for the 2Q2014 deadline. HSL has submitted its proposal for Phase 2 (RM500 million), with the results possibly made known after the state elections. The entire job over 4 phases is worth RM2.2 billion.<br />
<br />
Given HSL's experience with Phase 1 and possession of the necessary equipment, we think it stands a good chance with the subsequent phases. We also gather that HSL is in discussions on a concession to maintain the wastewater system once it is completed.<br />
<br />
The bulk of HSL's billings for the RM452 million Kuching sewerage project and the high-end The Leaf property sales should start accruing from this year, along with FY10's RM532 million new contracts.<br />
<br />
Year-to-date, its order book replenishment stands at RM108 million, representing nearly a quarter of our FY11F new contract assumptions and nearly twice that of the same period last year.<br />
<br />
The group is targeting RM550 million (our assumption is RM500 million) new contracts this year; with a particular focus on the Sarawak Corridor of Renewable Energy's (Score) agro-based growth node of Tanjung Manis.<br />
<br />
Projects earmarked by HSL in Tanjung Manis this year include the RM350 million deepsea port extension, more than 100km of access roads and various high-margin marine civil works.<br />
<br />
Also expected this year is the announcement of the remaining packages of RM2 billion worth of road jobs linking Score's energy sites involving 21 open tenders that were closed last year. HSL has tendered for seven of these.<br />
<br />
Each package is valued at RM50 million to RM150 million. IJM Corp, Cahya Mata Sarawak Bhd (CMSB) and Loh & Loh Bhd Corp Bhd secured the early packages last year.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0tag:blogger.com,1999:blog-6628838536708537960.post-86224758878247806142011-05-25T23:04:00.000-07:002011-05-25T23:04:34.305-07:00Keppel Land BUY Target Price $5.36 by CIMB Equities ResearchCIMB Research has raised its target price for Singapore property developer Keppel Land (KLAN.SI) to $5.36 from $5.29 and kept its outperform rating.<br />
<br />
CIMB Research said it expects Keppel Land to weather China’s property cooling measures relatively unscathed, as its township portfolio in Tianjin Eco-City, a China-Singapore government venture development, has seen strong initial residental sales and will produce sustainable growth in the next decade.<br />
<br />
“Its stock underperformance serves to reinforce our positive view. We continue to expect price catalysts from rising China township prices and Singapore office rents,” said CIMB in a report.<br />
<br />
The brokerage said it expects Keppel Land’s China business to increasingly become an important growth driver for the company’s value.Denzukehttp://www.blogger.com/profile/00532019840171678068noreply@blogger.com0