TASCO (FV RM2.48 BUY)

Transcription

1 PP10551/09/2012 (030567) MALAYSIA EQUITY Investment Research Daily 19 APRIL 2012 On The Platter TASCO (FV RM2.48 BUY) Company Update: All Still Intact On Tuesday, we attended the briefing by TASCO as part of the Investor Relations Day co-organized by Malaysia Investor Relations Association and ZJ Advisory. The briefing reaffirmed our view of TASCO as the top pick in our Logistics universe for its: (i) healthy growth in its sea and air freight business, (ii) expanding 3rd Party Logistics volume from its existing clients, and (iii) low PER, at 6x FY12 EPS vs the industry average of 7x. We keep our BUY call, but upgrade our FV from RM2.33 to RM2.48, pegging the stock at a slightly higher PER of 7x, which is in line with the industry average PER, from 6.5x previously. AUTOMOTIVE (NEUTRAL) Sector Update: Mar 12 TIV: Sluggish Sales TELECOMMUNICATION (NEUTRAL) Sector News Flash: All to Share Content from 1 May CENSOF (FV RM0.57 BUY) Corporate News Flash: Second Haul in a Week PBBANK (FV RM14.40 NEUTRAL) 1QFY12 Results Review: Going at a Slower Pace KASIKONBANK (FV THB188.9 BUY) 1QFY12 Results Review: Solid Numbers All Round SIAM COMMERCIAL BANK (FV THB157.8 NEUTRAL) 1QFY12 Results Review: Sizzling Growth MAANSHAN IRON & STEEL (FV HKD2.37 NEUTRAL) 1QFY12 Results Review: Puzzled by Widening Losses KLCI Intraday Chart Market Review :00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 14:55 15:25 15:55 16:25 16:55 Battle for 1,600. The FBM KLCI rallied to a high of pts but could not sustain its move above the 1,600-pt psychological level. At the end of the day, the benchmark closed 2.67 pts higher at Today s news headlines include: IMF revises up Malaysia s GDP growth from 4.0% to 4.4% for 2012 and projects a 4.7% growth in 2013, Public Bank reports a RM940.8m 1Q net profit and Century Software receives two letter of awards from Malaysia s Inland Revenue worth RM5.6m, Meanwhile, DRB-Hicom signs cooperation agreement with TATA Motors to develop, promote and market TATA military vehicles and Eversendai was appointed as subcontractor for the National Museum of Qatar package 2 worth RM134m. The Dow closed 83 pts lower but stayed above the 13,000-pt level, while Europe also lost ground with the Dax losing 1.0% and the CAC 40 down by 1.6%. Some downward pressure could be expected for the local market as long as it fails to break above the 1,600 level. Key Market Indices Value Change %Change FBMKLCI % FBM % FBM % Dow Jones % S&P % Nasdaq % FTSE % DAX % FSSTI % Hang Seng % Nikkei % KOSPI % TWSE % Key Statistics Value Change %Change Volume (m) % Value (RM'm) % FKLI - May' % FKLI - Apr' % CPO - May' % Crude Oil (USD) % 3-mth KLIBOR 3.19 UNCHG UNCHG RM/USD % RM/SGD % EUR/USD % PE CY11 CY12F CY13F OSK Universe OSK CI OSK Research See important disclosures at the end of this report 1

2 MEDIA HIGHLIGHTS Public Bank registers record net profit Public Bank posted another record net profit for its 1Q ended Mar 2012, buoyed by strong loan growth, higher deposits and non-interest income, and the application of new accounting policies The banking group s net profit grew 6.4% to RM940.8m for the quarter in review, from RM884.1m for the corresponding period a year earlier. (Financial Daily) Please see accompanying report Century Software receives IRB awards Century Software SB has accepted two letters of award from the Internal Revenue Board to carry out accounting system projects worth RM5.6m The first project will commence from 1 Jan for three years and the second will commence from the date of acceptance of the letter of award for a period of two years and three months. (Financial Daily) Please see accompanying report Study on new Johor-Singapore rail, road links The Malaysian and Singaporean governments will appoint a foreign consultant by early next month to undertake a detailed study on the proposed Rapid Transit System (RTS) linking Johor Baru and the island republic. It is understood that the study, which will take six to 12 months to complete, will determine the best options for the RTS development and project cost. People familiar with the matter said several options were being considered by both governments. They said the governments were mulling whether to build an elevated rail and road link or underground tunnels between the two cities. (BT) DefTech, Tata seal defence cooperation Defence Technologies SB (DefTech), a wholly-owned defence arm of DRB-Hicom, yesterday signed a cooperation agreement with India s Tata Motors Ltd to develop, promote and market the latter s military vehicles. The cooperation agreement will enable both DefTech and Tata to promote the high mobility 4x4 trucks with payloads ranging from 2.5 to five tonnes to the Malaysian government. (Malaysian Reserve) Eversendai gets RM134m sub-contract for Qatar museum Eversendai Corporation s subsidiary has secured a RM134m sub-contract for the second package of the National Museum of Qatar. It said on Wednesday the subsidiary, Eversendai Engineering Qatar W.L.L, was awarded the contract by the main contractor Hyundai Engineering & Construction Co. Ltd. The scope of work includes design, fabrication and building of steel structures. (StarBiz) First Solar plant shutdown sparks fears of bigger shakeup US-based solar panel manufacturer First Solar Inc announced on Tuesday the shutdown of its manufacturing plant in Frankfurt, Germany. In addition, beginning May, the company plans to indefinitely shut down four more production lines at its plant in Kulim, Kedah. According to the company, this is to facilitate the restructuring of its operations due to deteriorating market conditions in Europe. The company also hopes to cut costs and explore new market opportunities. (Malaysian Reserve) JCY likely to maintain strong earnings in Q2 JCY International s second-quarter earnings could be as strong as its first-quarter figures. Southeast Asia's largest technology company is expected to release its second-quarter earnings by the middle of next month. "Our production output should be on target," said JCY finance director, James Wong, in an interview with Business Times recently. He added that the company has been doing well in the current quarter (second quarter), subject to external factors such as fluctuations in the currency markets. (BT) OSK Research See important disclosures at the end of this report 2

3 ECONOMIC HIGHLIGHTS India: Consumer-price inflation accelerated to 9.47% in March Indian consumer-price inflation accelerated in March as the cost of egg, vegetables, fish and meat products rose, the government said. The consumer-price index climbed 9.47% y-o-y, compared with an 8.83% advance in February, the central statistics office said in a statement yesterday. The Reserve Bank of India cut interest rates earlier this week for the first time since 2009 on slowing growth even as it said upside risks to inflation were limiting room for further easing. The country s benchmark wholesale-price index rose 6.89% in March, slower than the 6.95% pace in February. (Bloomberg) China: Home prices decline in more than half of cities China s home prices fell in a record 37 of 70 cities tracked by the government in March as officials pledged to keep restrictions on property purchases that have sapped buyer demand. The eastern city of Wenzhou led declines with a 9% slump in values from a year earlier, while Beijing and Shanghai recorded drops of 0.8%, according to data released by the statistics bureau yesterday. Yesterday s release underscores forecasts for China s economic growth to slow further this quarter after the rate reached the lowest level in almost three years in the three months through March. (Bloomberg) UK: Unemployment unexpectedly falls as growth resumes UK jobless claims rose less than economists forecast in March and a broader measure of unemployment fell for the first time for almost a year, signs that the labour market is stabilizing as the economy recovers. Joblessbenefit claims rose by 3,600 from February to 1.61m, the Office for National Statistics said yesterday. Unemployment as measured by International Labour Organization methods fell to 8.3% in the quarter through February from a 16-year high of 8.4%. (Bloomberg) US: Factories cool for first time in four months Production at US factories dropped in March for the first time in four months as the industry cooled following the strongest surge in three decades. Manufacturing, which makes up about 75% of industrial output, decreased 0.2% last month as appliance and furniture makers cut back, data from the Federal Reserve showed today in Washington. The decline followed a revised 3.4% gain from December through February that marked the biggest three-month jump since March (Bloomberg) OSK Research See important disclosures at the end of this report 3

4 CORPORATE ACTION CALENDAR UPCOMING EVENTS Date Company Details Time Venue 20-Apr-12 Malaysia Smelting Corporation Meeting 3.30pm Megan Avenue II 23-Apr-12 British American Tobacco 1QFY12 Analyst Briefing 5.00pm Petaling Jaya HQ 24-Apr-12 Various OSK Top Malaysian Small Cap Companies (2012 Edition) - OSK Jewels- Book Launch and Corporate Day pm Mandarin Oriental, Kualal Lumpur 27-Apr-12 Nestle Analyst Briefing 3.00pm Surian Tower ENTITLEMENTS 19-Apr-12 FSBM Holdings RENOUNCEABLE RIGHTS ISSUE OF UP TO 60,316,300 NEW ORDINARY SHARES OF RM0.30 EACH IN FSBM ( RIGHTS SHARES ) TOGETHER WITH UP TO 60,316,300 FREE NEW DETACHABLE WARRANTS ( WARRANTS ) AT AN ISSUE PRICE OF RM0.30 PER RIGHTS SHARE ON THE BASIS OF ONE (1) RIGHTS SHARE TOGETHER WITH ONE (1) WARRANT FOR EVERY ONE (1) EXISTING ORDINARY SHARE OF RM0.30 EACH HELD AT 5.00 P.M. ON 23 APRIL 2012, BASED ON THE MINIMUM SUBSCRIPTION LEVEL OF 26,117,500 RIGHTS SHARES TOGETHER WITH 26,117,500 WARRANTS ( RIGHTS ISSUE WITH WARRANTS ) 20-Apr-12 NV Multi Corporation Share Exchange Of The Entire Issued And Paid-Up Share Capital Of NV Multi Of 115,110,300 Ordinary Shares Of RM0.01 Each In NV Multi For 18,417,648 New Ordinary Shares Of RM0.50 Each In AYS Ventures Berhad Pursuant To A Scheme Of Arrangement Under Section 176 Of The Companies Act, 1965, At An Issue Price Of RM0.50 Per AYS Ventures Share On The Basis Of 8 New AYS Ventures Shares For Every 50 Existing NV Multi Shares Held 23-Apr-12 Evergreen Fibreboard Tax-Exempt Interim Dividend of 1.5 sen 23-Apr-12 MY E.G. Services Bhd First Interim Tax Exempt Dividend of 0.5 sen per ordinary share of RM0.10 each for the financial year ending 30 June Apr-12 OSK Holdings Berhad Final Dividend - Distribution of one (1) treasury share for every forty (40) existing shares of RM1.00 each, fraction of a treasury share to be disregarded 23-Apr-12 OSK Holdings Berhad Final Dividend - Final Dividend of 2.0 sen per ordinary share less 25% income tax 23-Apr-12 Sime Darby Bhd Interim single tier dividend of RM0.10 per ordinary share. 24-Apr-12 YTL Cement Bhd Thirteenth interest payment of 5% per annum on RM483,246,858 nominal value of 10-year 4% stepping up to 6% Irredeemable Convertible Unsecured Loan Stocks 2005/ Apr-12 Opcom Holdings Single Tier Interim Dividend of 1.50 sen per ordinary share 25-Apr-12 Selangor Properties First and Final Dividend of 10% less 25% Income Tax in respect of the financial year ended 31 October Apr-12 Cycle & Carriage Bintang Final single-tier tax exempt dividend of RM0.05 per share 26-Apr-12 Eksons Corporation Bhd Interim Dividend of 2.5 sen per ordinary share of RM0.80 each under the single tier system. 26-Apr-12 Grand Central Enterprises Bhd First and Final Dividend of 4% less Income Tax at 25%. 26-Apr-12 Opensys (M) First interim tax exempt dividend of 5% equivalent to 0.5 sen per ordinary share of 10 sen each 26-Apr-12 AXIS REIT First Interim Distribution of Income of 4.30 sen per unit (of which 4.25 sen per unit is taxable and 0.05 sen per unit is non-taxable in the hands of unitholders) in respect of the period from 1 January 2012 to 31 March Apr-12 Aliran Ihsan Resources Payment of First Interim Dividend (Single Tier) of RM0.085 per RM1.00 ordinary share of Aliran Ihsan Resources Berhad for the financial year ending 31 December Apr-12 Malayan Banking Berhad Final cash dividend in respect of the 6-month financial period ended 31 December 2011 of RM0.36 per ordinary share of RM1.00 each in Maybank less 25% taxation 27-Apr-12 Notion Vtec Berhad Adjustments to the exercise price and number of outstanding Warrants 2010/2015 ("Warrants-A") issued in accordance with the provision of the deed poll dated 19 July 2010 ("Deed Poll") ("Adjustments"), pursuant to the following: (I) Bonus issue of up to 138,910,522 new ordinary shares of RM0.50 each in Notion VTec Berhad ("NVB") ("NVB Shares") on the basis of 3 NVB Shares for every 4 existing NVB Shares held by the shareholders of NVB, to be credited as fully paid-up ("Bonus Issue"); and (II) Issuance of up to 46,303,507 free warrants in NVB ("Warrants-B") on the basis of 1 Warrant-B for every 4 existing NVB Shares held by the shareholders of NVB ("Free Warrants Issue") 27-Apr-12 Notion Vtec Berhad Issuance of up to 46,303,507 free warrants in Notion VTec Berhad ("NVB") ("Warrants-B") on the basis of 1 Warrant-B for every 4 existing ordinary shares of RM0.50 each in NVB 27-Apr-12 Notion Vtec Berhad Bonus issue of up to 138,910,522 new ordinary shares of RM0.50 each in Notion VTec Berhad ("NVB") ("NVB Shares"), on the basis of 3 NVB Shares for every 4 existing NVB Shares held by the shareholders of NVB, to be credited as fully paid-up ("Bonus Shares") 30-Apr-12 Shell Refining Company A final dividend of RM0.20 per share of RM1.00 each, less 25% Malaysian Income Tax in respect of the financial year ending 31 December Apr-12 Time Engineering Final Gross Dividend of 4.0 sen less 25% tax (net dividend of 3.0 sen) per ordinary share in respect of the financial year ended 31 December Apr-12 Asia File Corporation Bhd A Single Tier Interim Dividend of 8% 2-May-12 TH Plantation Bhd First and Final Single Tier Dividend of sen per ordinary share. 3-May-12 Chin Well Holdings Bhd Tax Exempt Interim Dividend of 2% 4-May-12 Century Logistics Holdings Single Tier Final Dividend of 7.0 sen per share 7-May-12 Syarikat Takaful Malaysia Berhad Final Dividend of 10% Single Tier 7-May-12 Poh Huat Resources Holdings First and Final Tax Exempt Dividend of 2% in respect of the financial year ended 31 October May-12 Zhulian Corporation A First Interim Single Tier Dividend of 3 sen per ordinary share of RM0.50 each 8-May-12 Help International Corporation First and Final Dividend of 4% (2 sen per ordinary share of 50 sen each) less 25% income tax 9-May-12 Microlink Solutions Berhad Final Tax Exempt Dividend of 1 sen per ordinary share of RM0.10 each 9-May-12 Classic Scenic Bhd A second interim dividend comprising franked dividend of RM0.03 per ordinary share less tax 25% and tax exempt dividend of RM0.02 per ordinary share in respect of the year ended 31 December May-12 The Nomad Group Bhd First and Final Dividend of 2 sen per share less 25% income tax 10-May-12 Wah Seong Corporation Bhd Twentieth/Last Interest Payment on RM89,499,999 Nominal Value of 10-Year 3% Per-annum Irredeemable Convertible Unsecured Loan Stocks 2002/2012 ("ICULS") 14-May-12 Ajiya Berhad FIRST AND FINAL DIVIDEND OF 6% LESS INCOME TAX FOR FINANCIAL YEAR ENDED 30 NOVEMBER May-12 Cypark Resources First and final tax exempt single tier dividend of 3.75 sen per ordinary share 14-May-12 Nestle (Malaysia) A final dividend of 125 sen per share, tax exempt under single tier system, amounting to RM293,125, in respect of the financial year ended 31 December May-12 United Plantations Berhad A Special Dividend of 50% gross per share less 25% Malaysian Income Tax for the year ended 31 December 14-May-12 United Plantations Berhad A Final Dividend of 30% gross per share less 25% Malaysian Income Tax for year ended 31 December May-12 Tasek Corporation Special ordinary dividend of 50% less income tax of 25% 16-May-12 Tasek Corporation Preference dividend of 6% single tier and final ordinary dividend of 30% single tier. 16-May-12 Tasek Corporation Special ordinary dividend of 50% single tier 21-May-12 BIMB Holdings Final Single Tier Dividend of 7.25% 21-May-12 Malaysia Smelting Corporation Bhd Final Dividend of 18 sen per RM1.00 ordinary share less 25% tax 22-May-12 Telekom Malaysia Final Single Tier Dividend of 9.8 sen per share 25-May-12 PPB Group Bhd Proposed final single tier dividend of RM0.13 per share. 25-May-12 ESSO Malaysia Bhd Final Dividend of Fourteen Sen (14 Sen) per ordinary stock unit of the Company, less Malaysian Income Tax at 25%, for the year ended December 31, 2011, subject to approval of 28-May-12 Shangri-La Hotels (Malaysia) Bhd 6% the Stockholders per ordinary share at the less Company's tax at 25%. forthcoming Annual General Meeting. 29-May-12 ECS ICT Berhad Single tier final dividend of 8 sen per share 30-May-12 APEX Healthcare Berhad Final dividend of 5.0 sen gross per share less tax and a special tax-exempt dividend of 5.0 sen per share for the financial year ended 31 December May-12 MMC Corporation Final single-tier dividend of 4.0 sen per share 30-May-12 SIG Gases Bhd Final Dividend of 0.6 sen per share under the single-tier system 6-Jun-12 CCM Duopharma Biotech Berhad Final Dividend of 14.5 sen per ordinary share of RM0.50 each less 25% income tax 6-Jun-12 Ken Holdings Berhad A first and final dividend of 6 sen per ordinary share less tax 25% in respect of the year ended 31 December Jun-12 Supermax Corp Final Tax Exempt Dividend of 3.5% 7-Jun-12 Luxchem Corp Bhd Final Dividend of 5.0 sen per ordinary share under the single-tier system 7-Jun-12 Luxchem Corp Bhd Special Dividend of 1.0 sen per ordinary share under the single-tier system 11-Jun-12 MMHE Bhd Final single tier dividend of 10 sen per ordinary share 13-Jun-12 Media Prima Bhd Final single-tier dividend of RM0.05 per ordinary share for the financial year ended 31 December Jun-12 Mesiniaga First and Final Dividend of 21 sen less tax at 25% 20-Jun-12 Yeo Hiap Seng (Malaysia) Bhd Final Dividend of RM0.09 per share less 25% Malaysian Income Tax for the financial year ended Jun-12 CSC Steel Final single tier system of dividend of 5% or 5 sen per share and a special single tier system of dividend of 2% or 2 sen per share for the financial year ended 31 December Jun-12 Metrod Holdings Bhd Final Single Tier Dividend of 6 sen per share 27-Jun-12 TRC Synergy Berhad First and Final gross dividend of 2.0 sen per share less 25% tax 27-Jun-12 Triumphal Associates First and final single tier dividend of 1 sen per ordinary share of RM1.00 each for the financial year ended 31 December Jun-12 Mega First Corporation Berhad Final Dividend comprising 4.6 sen less income tax of 25%, and 1.4 sen tax-exempt, per ordinary share of 29-Jun-12 Chemical Company of Malaysia Final Dividend of 2.86 sen per ordinary share comprising Gross Final Dividend of 0.44 sen per ordinary share (less 25% tax); and Final Tax Exempt Dividend of 2.42 sen per ordinary share 6-Jul-12 Kelington Group Final Tax Exempt Dividend of 4.0 sen per ordinary share of RM0.10 each for the financial year ended 31 December 2011 IPOs Company Prospectus date Listing date ECONOMIC EVENTS Date 18-Apr Apr-12 Events CPI Money Supply Details OSK Research See important disclosures at the end of this report 4

5 OSK Research Guide to Investment Ratings Buy: Share price may exceed 10% over the next 12 months Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain Neutral: Share price may fall within the range of +/- 10% over the next 12 months Take Profit: Target price has been attained. Look to accumulate at lower levels Sell: Share price may fall by more than 10% over the next 12 months Not Rated (NR): Stock is not within regular research coverage All research is based on material compiled from data considered to be reliable at the time of writing. However, information and opinions expressed will be subject to change at short notice, and no part of this report is to be construed as an offer or solicitation of an offer to transact any securities or financial instruments whether referred to herein or otherwise. We do not accept any liability directly or indirectly that may arise from investment decision-making based on this report. The company, its directors, officers, employees and/or connected persons may periodically hold an interest and/or underwriting commitments in the securities mentioned. Distribution in Singapore This research report produced by OSK Research Sdn Bhd is distributed in Singapore only to "Institutional Investors", "Expert Investors" or "Accredited Investors" as defined in the Securities and Futures Act, CAP. 289 of Singapore. If you are not an "Institutional Investor", "Expert Investor" or "Accredited Investor", this research report is not intended for you and you should disregard this research report in its entirety. In respect of any matters arising from, or in connection with, this research report, you are to contact our Singapore Office, DMG & Partners Securities Pte Ltd ("DMG"). All Rights Reserved. No part of this publication may be used or re-produced without expressed permission from OSK Research. Published by OSK Research Sdn. Bhd., 6th Floor, Plaza OSK, Jalan Ampang, Kuala Lumpur Printed by Xpress Print (KL) Sdn. Bhd., No. 17, Jalan Lima, Off Jalan Chan Sow Lin, Kuala Lumpur OSK RESEARCH SDN. BHD. ( V) (A wholly-owned subsidiary of OSK Investment Bank Berhad) Kuala Lumpur Hong Kong Singapore Malaysia Research Office OSK Research Sdn. Bhd. 6 th Floor, Plaza OSK Jalan Ampang Kuala Lumpur Malaysia Tel : +(60) Fax : +(60) OSK Securities Hong Kong Ltd. 12 th Floor, World-Wide House 19 Des Voeux Road Central, Hong Kong Tel : +(852) Fax : +(852) DMG & Partners Securities Pte. Ltd. 10 Collyer Quay #09-08 Ocean Financial Centre Singapore Tel : +(65) Fax : +(65) Jakarta Shanghai Phnom Penh PT OSK Nusadana Securities Indonesia Plaza CIMB Niaga, 14 th Floor, Jl. Jend. Sudirman Kav. 25, Jakarta Selatan Indonesia Tel : (6221) Fax : (6221) OSK (China) Investment Advisory Co. Ltd. Room 6506, Plaza 66 No.1266, West Nan Jing Road Shanghai China Tel : +(8621) Fax : +(8621) OSK Indochina Securities Limited No. 1-3, Street 271, Sangkat Toeuk Thla, Khan Sen Sok, Phnom Penh, Cambodia Tel: (855) Fax: (855) Bangkok OSK Securities (Thailand) PCL 10 th Floor,Sathorn Square Office Tower, 98, North Sathorn Road,Silom, Bangrak, Bangkok Thailand Tel: +(66) Fax : +(66)