Economic Highlights - Economic Activities Remained Resilient In August - 30/08/2010

◆ Vietnam’s industrial production rebounded to 15.2% yoy in August, after easing to +12.3% in July and compared with +14.6% in June. This suggests that industrial activities held up relatively well despite signs of slowing global economic growth.


Economic Highlights - Economic Activities Remained Resilient In August - 30/08/2010

Corporate Highlights - 30/08/2010

♦ Banking
Sector Update : Jul ‘10 System Data – Monthly Applications Still Strong Despite OPR Hikes

♦ Property
Sector News Update : Downpayment Ratio To Be Raised?

Corporate Highlights - 30/08/2010

Mandarin Version : Market Technical Reading - Stay Cautious On Market’s Near-term Direction… - 30/08/2010

Local Market Leads:
♦ Powered by sharp gains in Sime and other key blue chips, Bursa Malaysia extended its recent rally to another fresh year high on Friday.

Mandarin Version : Market Technical Reading - Stay Cautious On Market’s Near-term Direction… - 30/08/2010

Mandarin Version : Kumpulan Europlus Berhad : Good Chance For A Technical Rebound… - 30/08/2010

A positive candle indicates a firm bargain-buying support underway. The share price of KEuro surged on renewed buying activities in May 2010 and saw the stock rise towards the RM0.945 key resistance level in Jun 2010. Although the share price corrected to RM0.645 at one point, it managed to rebound swiftly and surpassed the RM0.945 level in late Jun. But, it wasn’t until mid-Aug 2010 that it launched a strong run-up from the RM0.945 region to a high of RM1.14, before succumbing to profit-taking pressure. The stock registered a positive candle near RM0.945 on Friday to indicate a firm bargain-buying support returning at the current level.

Mandarin Version : Kumpulan Europlus Berhad : Good Chance For A Technical Rebound… - 30/08/2010

Tracking The World Economy... - 30/08/2010

US Economy Grew At A Slower Pace Than Earlier Estimate And The Fed Pledged To Take Action If Necessary The US real GDP growth moderated to a revised annualised rate of 1.6% in the 2Q, weaker than +2.4% estimated previously (+3.7% in the 1Q) but stronger than the market expectation of 1.4%. This was due mainly to a sharperthan-
expected increase in trade deficit, as imports accelerated while exports eased during the quarter. As a result, net exports subtracted 3.4 percentage points from GDP growth in the 2Q, compared with -2.8 percentage points estimated previously and -0.6 percentage point in the 1Q. A smaller-than-expected build-up in inventory as businesses turned cautious also contributed to the slower growth. These were, however, mitigated by a stronger-than-expected increase in consumer spending and fixed-asset investment during the quarter.

Tracking The World Economy... - 30/08/2010

Mandarin Version : Commodities & Currencies : Potential Rebound On EUR Against US$ This Week… - 30/08/2010

Light Sweet Crude Oil futures (Crude)
♦ After registering a poor set of technical readings in the previous week, the US Light Sweet Crude Oil futures fell to a weekly low of US$70.76 last week, before
closing the week higher at US$75.17 on Friday.

Mandarin Version : Commodities & Currencies : Potential Rebound On EUR Against US$ This Week… - 30/08/2010

Commodities & Currencies : Potential Rebound On EUR Against US$ This Week… - 30/08/2010

Light Sweet Crude Oil futures (Crude)
♦ After registering a poor set of technical readings in the previous week, the US Light Sweet Crude Oil futures fell to a weekly low of US$70.76 last week, before
closing the week higher at US$75.17 on Friday.

Commodities & Currencies : Potential Rebound On EUR Against US$ This Week… - 30/08/2010

Kumpulan Europlus Berhad : Good Chance For A Technical Rebound… - 30/08/2010

A positive candle indicates a firm bargain-buying support underway. The share price of KEuro surged on renewed buying activities in May 2010 and saw the stock rise towards the RM0.945 key resistance level in Jun 2010. Although the share price corrected to RM0.645 at one point, it managed to rebound swiftly and surpassed the RM0.945 level in late Jun. But, it wasn’t until mid-Aug 2010 that it launched a strong run-up from the RM0.945 region to a high of RM1.14, before succumbing to profit-taking pressure. The stock registered a positive candle near RM0.945 on Friday to indicate a firm bargain-buying support returning at the current level.

Kumpulan Europlus Berhad : Good Chance For A Technical Rebound… - 30/08/2010

Market Technical Reading - Stay Cautious On Market’s Near-term Direction… - 30/08/2010

Local Market Leads:
♦ Powered by sharp gains in Sime and other key blue chips, Bursa Malaysia extended its recent rally to another fresh year high on Friday.

Market Technical Reading - Stay Cautious On Market’s Near-term Direction… - 30/08/2010

Ta Ann Holdings Berhad : Eco Friendly but Not Profit Wise - 30/08/2010

♦ Significantly below. Stripping off forex loss of RM4.7m, Ta Ann’s 1HFY12/10 core net profit of RM20.1m (-2.6% yoy) was significantly below our and consensus expectations, accounting for just 21-22% of our and consensus forecasts respectively. Key variance was mainly due to continued losses in its plywood division (vs. our forecast of RM10-15m profit before tax for FY10), where cost of production was higher as a result of a product mix shift, despite higher average selling prices achieved. Besides this, log production was also lower than expected due to the exceptionally wet weather.

Ta Ann Holdings Berhad : Eco Friendly but Not Profit Wise - 30/08/2010

Perwaja Holdings Berhad : In Line, Expecting Performance To Pick Up From 4Q - 30/08/2010

♦ In line. 1HFY12/10 core net profit of RM32.9m came in within our
expectation, at 51% of our full-year estimate.

Perwaja Holdings Berhad : In Line, Expecting Performance To Pick Up From 4Q - 30/08/2010

Petronas Gas Berhad : Off To A Good Start - 30/08/2010

♦ Above expectations. 1QFY3/11 net profit of RM382.8m (+88% qoq, +42.3% yoy) was above expectations, accounting for 31% and 33% of our and consensus full-year estimates respectively. The better-than-expected earnings came largely on the back of the 1) higher transportation fees (Capacity Reservation Charge) charged on a zoning basis under the 4th term Gas Processing And Transmission Agreement (which came into effect on 1 Apr); and 2) lower operating costs (as internal gas consumption is now provided by Petronas) that led to higher EBIT margins (+23.8ppts
qoq, +13.7 yoy).

Petronas Gas Berhad : Off To A Good Start - 30/08/2010

Economic Highlights - Broad Monetary Aggregate And Loan Growth Moderated In July - 30/08/2010

◆ The broader money supply, M3, slowed down to 8.1% yoy in July, from +8.8% in June and +9.3% in May. This was the second consecutive month of easing, suggesting that the underlying economic activities are moderating. The slowdown was due to weaker demand for funds by the private sector, on the back of slower increases in loans and
the issuance of securities. This was, however, mitigated by a pick-up in government operations and external operations during the month.

Economic Highlights - Broad Monetary Aggregate And Loan Growth Moderated In July - 30/08/2010

Property Sector Update : Downpayment Ratio To Be Raised? - 30/08/2010

♦ Downpayment ratio to be raised? Last weekend, The Edge Weekly reported that Bank
Negara Malaysia (BNM) may implement new lending rules to cool real-estate industry.
According to the article, downpayment ratio may be raised to 20% compared to 10%
currently. This is despite the reimposition of 5% real property gain tax (RPGT) announced during Budget 2010, to curb the speculative buying of properties. A few countries, such as China, Hong Kong and Singapore, where their properties experienced significant appreciation in prices over the past two years, have already implemented progressively higher downpayment ratio for buyers who own more than one property.

Property Sector Update : Downpayment Ratio To Be Raised? - 30/08/2010

KLCC Property Berhad : No Surprises - 30/08/2010

♦ Within expectations. KLCCP’s 1QFY11net profit of RM63.7m (+5.5% yoy) came in within our and consensus estimates. Revenue grew 4.6% yoy, mainly attributed to: a) higher rentals of retail mall and office buildings (+4.2% yoy) in particular Dayabumi, due to rental revisions; b) higher revenue from hotel operations (+3.1% yoy). Meanwhile, the yoy improvement in PBT was due to lower operating costs and finance cost incurred during the quarter. As expected, no dividend was declared for the quarter.

KLCC Property Berhad : No Surprises - 30/08/2010

Kinsteel Berhad : 2QFY12/10 Net Profit Falls 64% On Higher Input Costs And Weaker Sales Volumes - 30/08/2010

♦ Below expectations. 1H reported core net profit of RM30.7m came in below
expectations, accounting for only 37.8% of our and 32.8% of the concensus
full-year estimates. The variance against our forecast came largely from
lower-than-expected sales volume at the downstream operations.

Kinsteel Berhad : 2QFY12/10 Net Profit Falls 64% On Higher Input Costs And Weaker Sales Volumes - 30/08/2010

Banking Sector Update : Jul ‘10 System Data – Monthly Applications Still Strong Despite OPR Hikes - 30/08/2010

♦ Jul ‘10 banking system loan growth at 11.9% yoy. Jul ’10 loan growth moderated slightly to +11.9% yoy vs. +12.5% yoy in Jun ’10. This was largely due to lower disbursements during the month, especially to the business segment. The household segment saw outstanding loans accelerate further to +13.2% yoy (vs. Jun ’10: +12.9% yoy) with growth still broad-based.

Banking Sector Update : Jul ‘10 System Data – Monthly Applications Still Strong Despite OPR Hikes - 30/08/2010

Media Sector Update : Jul ’10 Adex Grew 19.3% YoY - 30/08/2010

♦ Jul’s adex for TV and print media grew 19.3% yoy. According to Nielsen Media Research (NMR), Jul’s gross ad spend for print and TV media rose 19.3% yoy with both TV and print media reporting yoy growth of 20.7% and 18.2% respectively.

Media Sector Update : Jul ’10 Adex Grew 19.3% YoY - 30/08/2010

RHB Equity 360° - 30 August 2010 (Banks, Property, PetGas, Ta Ann, Kinsteel, Perwaja, KLCCP; Technical: CIMB, K.Euro)

Sector Update
- Jul loan growth moderated slightly to +11.9% yoy (Jun: +12.5% yoy). This was largely due to lower disbursements during the month, especially to the business segment. The household segment saw outstanding loans accelerate further to +13.2% yoy (vs. Jun: +12.9% yoy) with growth still broad-based.
- Jul loan applications rose further to RM58.4bn (+13.6% yoy; +9.9% mom), a new high for the banking system. Absolute loan approvals, meanwhile, moderated to RM28.9bn (+7.9% yoy) vs. RM33.3bn (+24.2% yoy) in Jun. Jul’s statistics suggest that demand for loans has not been dampened by the three hikes in the Overnight Policy Rate (OPR) by BNM thus far.

RHB Equity 360° - 30 August 2010 (Banks, Property, PetGas, Ta Ann, Kinsteel, Perwaja, KLCCP; Technical: CIM...

Corporate Highlights...-27/08/2010

Excluding EI, above our forecasts. Sime Darby’s FY06/10 core net profit came in above our expectations, at 115% of our forecasts. In 4QFY10, Sime recorded more EI losses for the E&U division of RM777.3m, which include RM213m in write-offs for its groundwater project; RM61.2m of losses for impairment in investment in the healthcare sector and RM18.2m in unrealised forex losses, bringing total EI loss for FY10 to an estimated RM1.95bn. Management did not breakdown the EI losses for the E&U division by project, as it did not want to jeapordise its VO recovery.


Corporate Highlights...-27/08/2010

Mah Sing Group Berhad :Getting Stronger - 27/08/2010

Within expectations. Mah Sing’s 2Q10 net profit of RM29.2m (+26.6% yoy and +4.6% qoq) came in within our and consensus estimates. Key projects that contributed to earnings include Perdana Residence 2, Hijauan Residence, Kemuning Reidenc, Aman Perdana, Southgate, StarParc Point, i-Parc, Reidence @ Southbay, and some projects in JB. Given the aggressive new launches, Mah Sing has exceeded its 2010 full year sales target of RM1bn within 7 months, and therefore management is now targeting to achieve > RM1.5bn sales this year.. EBIT margin was however lower in 2Q10, mainly due to rental yield guarantee for Icon Tun Razak, which occupancy rate is still poor. Meanwhile, unbilled sales continued to climb, stood at RM1.17bn as at Jun 2010, from RM1.1bn previously.

Mah Sing Group Berhad :Getting Stronger-27/08/2010

Sime Darby Berhad : Kitchen Sinking Done – Whats Next?-27/08/2010

Excluding EI, above our forecasts. Sime Darby’s FY06/10 core net profit came in above our expectations, at 115% of our forecasts. In 4QFY10, Sime recorded more EI losses for the E&U division of RM777.3m, which include RM213m in write-offs for its groundwater project; RM61.2m of losses for impairment in investment in the healthcare sector and RM18.2m in unrealised forex losses, bringing total EI loss for FY10 to an estimated RM1.95bn. Management did not breakdown the EI losses for the E&U division by project, as it did not want to jeapordise its VO recovery.

Sime Darby Berhad : Kitchen Sinking Done – Whats Next?-27/08/2010

WTK Holdings Berhad : Improving Fundamentals - 27/08/2010

Within expectations. WTK’s 1HFY12/10 net profit of RM5.1m came in at 13% of our full-year forecasts and market consensus. This is within our expectations as we anticipate a stronger 2HFY12/10 underpinned by steady increase in log and plywood prices. We previously highlighted in our report dated 24 Aug 2010 that management has seen its log and plywood average selling prices rising gradually over the past few months to about US$165/m3 and US$575/m3 in mid-Aug (from US$160/m3 and US$545 in
1HFY10).

WTK Holdings Berhad : Improving Fundamentals-27/08/2010

Sunrise Berhad : Getting More Aggressive-27/08/2010

Within expectations. Sunrise’s FY10 net profit of RM134m came in within our and consensus estimates. FY10 turnover fell 26.5%, mainly due to the completion of Meridin as well as substantial recognition of MK 10 and Solaris Dutamas in FY09. Future revenue will be supported by billings from MK11, Dutamas and MK 28. As for the bottom-line, excluding the one-off gain on disposal of office space in Plaza MK and an Australian asset amounted to RM19.4m recognised in FY09, FY10 core net profit dropped slightly by 2%. EBIT margin was higher, due to better product mix of higher-end properties, such as Residence and MK 11. A 5 sen final dividend was declared,
representing a yield of 2.4%.


Sunrise Berhad : Getting More Aggressive-27/08/2010

YNH Property Berhad : No Surprises-27/08/2010

Within expectations. YNH’s 2Q10 net profit of RM16m (+3.8% yoy; +8.6% qoq) came in within our and consensus estimates. Key projects that underpinned earnings for the quarter include Lot 163 Suites (KL), Ceriaan Kiara (Mont’ Kiara), and township development in Taman Manjung Baru (Seri Manjung), Taman Singa Baru, Taman Pegawai, Taman Emas, and sales of development land. A 3 sen interim single tier dividend was declared, in line with our full year dividend forecast of 3.9 sen.

YNH Property Berhad : No Surprises-27/08/2010

CIMB Group Holdings Berhad : Tracking Expectations-27/08/2010

2QFY10 results in line. CIMB’s 2Q net profit of RM889m (+34.1% yoy; +6.1% qoq) was in line with our and consensus expectations with 1H10 net profit of RM1.7bn (+35.3% yoy) accounting for 49-51% of our and consensus full-year forecasts.

CIMB Group Holdings Berhad : Tracking Expectations-27/08/2010

Kossan Rubber Industries Berhad : 1H Core Net Profit Up 15.8% YoY - 27/08/2010

Within expectations. Kossan’s 2QFY12/10 net profit of RM30.0m (flat mom; +15.7% yoy) was within our and consensus expectations with 6M core net profit of RM60.4m (+15.8% yoy) accounting for 51% and 52% of our and consensus full-year forecasts respectively. As expected, no dividend was declared for the quarter.

Kossan Rubber Industries Berhad : 1H Core Net Profit Up 15.8% YoY-27/08/2010

Genting Malaysia Berhad : Keeping It Up-27/08/2010

In line with ours, but above consensus. Genting Malaysia’s (GM) 1HFY10 core net profit was in line with our expectations, making up 52% of our forecast, but above consensus, making up 57% of consensus FY10 forecast. No EI losses or gains were recorded this quarter. GM declared an interim dividend of 3.6 sen (2Q09: 3 sen), which is in line with forecasts.

Genting Malaysia Berhad : Keeping It Up-27/08/2010

Genting Berhad: Singaporean Dreams Coming Through - 27/08/2010

Above expectations due to Singapore. Genting’s 1HFY10 normalised pretax profit was above expectations, coming in at 90% of our FY10 forecasts and 111% of consensus forecast. We note that all the other divisions of Genting, with the exception of Genting Singapore, came in within expectations. As noted in our report dated 13 Aug, although topline numbers made up 56.5% of our revenue assumptions for Genting Singapore, EBITDA margins of 40.4% in 1H10 were much higher than our projected 28.5% for FY10. This, together with the positive effective tax rates in the 2Q10 (due to an S$86.8m deferred tax writeback) caused the outperformance in the bottomline. Genting declared a gross DPS of 3.3 sen (less 25% tax) (2Q09: 3 sen) in 2Q10, in line with our expectations.

Genting Berhad: Singaporean Dreams Coming Through-27/08/2010

Allianz Malaysia Berhad : Encouraging Fundamentals-27/08/2010

General business does well from top to bottom. General insurance gross premiums grew by 14.1% yoy in 1H FY12/10, driven by its productive agency force (49%) and bancassurance tie-up with CIMB (12%). We understand that in the 1H, its motor policy segment growth was driven by its franchise distribution channel (16%) where new car owners buy their policies straight from the car dealers i.e. the franchise distributor of Allianz products. Underwriting margin improved by 3.5%-pts to 89.6% as a result of lower claims ratio of 62.7% vs. 1H09’s 63.4%, lower commission ratio of 8.9% vs. 9.0% in 1H09, and lower management expense ratios of 18% vs. 20.7% in 1H09.

Allianz Malaysia Berhad : Encouraging Fundamentals-27/08/2010

AEON Co.(M) Berhad : 1HFY10 Earnings In Line With Expectations - 27/08/2010

In line with expectations. AEON’s 1HFY12/10 net profit of RM75.1m (+65% yoy) was in line with our and consensus expectations, accounting for 52% our and consensus forecasts respectively.

AEON Co.(M) Berhad : 1HFY10 Earnings In Line With Expectations - 27/08/2010

Mandarin Version -Market Technical Reading : Further Confirmation Needed To Resume Upside Momentum…-27/08/2010

Local Market Leads:
♦ The local bourse made a strong comeback by hitting a fresh year high on Thursday, aided by a strong recovery in the overnight US markets as well as a rebound in the regional markets.
♦ And as investors continued to chase up the core heavyweights, like Sime (+12sen), Maybank (+9sen) and IOICorp (+9sen), the FBM KLCI surged 11.03 pts or 0.79% to 1,408.00 for the day.
♦ But overall market sentiment appeared sluggish, as reflected in the lower daily trading volume and the lack of trading leads for the broader market.
♦ Elsewhere, Asian markets took advantage on the overnight positive reversal in the US markets by kicking off a mild recovery move. Also, due to the same reason, the European markets opened sharply higher yesterday.
♦ There were only 685m shares transacted throughout the day compared to 873m shares recorded a day earlier.
Market breadth turned positive for the first time in five trading days with 353 advancers against 333 decliners.



Mandarin Version -Market Technical Reading : Further Confirmation Needed To Resume Upside Momentum…-27/08/2010

Market Technical Reading : Further Confirmation Needed To Resume Upside Momentum…-27/08/2010

Local Market Leads:
♦ The local bourse made a strong comeback by hitting a fresh year high on Thursday, aided by a strong recovery in the overnight US markets as well as a rebound in the regional markets.
♦ And as investors continued to chase up the core heavyweights, like Sime (+12sen), Maybank (+9sen) and IOICorp (+9sen), the FBM KLCI surged 11.03 pts or 0.79% to 1,408.00 for the day.
♦ But overall market sentiment appeared sluggish, as reflected in the lower daily trading volume and the lack of trading leads for the broader market.
♦ Elsewhere, Asian markets took advantage on the overnight positive reversal in the US markets by kicking off a mild recovery move. Also, due to the same reason, the European markets opened sharply higher yesterday.
♦ There were only 685m shares transacted throughout the day compared to 873m shares recorded a day earlier.
Market breadth turned positive for the first time in five trading days with 353 advancers against 333 decliners.


Market Technical Reading : Further Confirmation Needed To Resume Upside Momentum…-27/08/2010

Puncak Niaga Holdings Berhad : 1HFY10 Net Profit Declines On Higher Expenses-27/08/2010

In line with our forecast, but below market expectations. Although 1HFY12/10 reported net profit of RM69.3m accounting for 52.9% of our fullyear estimate, we consider the results to be within expectation, as Puncak’s operating costs were traditionally lower in 1H. As against the market concensus, the results came in below expectations, at only 42.3% of the concensus full-year estimate.

Puncak Niaga Holdings Berhad : 1HFY10 Net Profit Declines On Higher Expenses

RHB Equity 360°(Allianz, CIMB, Sime, GentMsia, GentBhd, Sunrise, AEON, WTK, Kossan, Mah Sing,YNH, Puncak; Technical: Berjaya Corp)-27/08/2010

Top Story : Allianz – Encouraging fundamentals Outperform
Briefing Note
- General insurance gross premiums grew by 14.1% yoy in 1H FY12/10, driven by its productive agency force (49%) and bancassurance tie-up with CIMB (12%).
- Life insurance premiums grew by 27.6% yoy, but, Annualised New Premiums (ANP) grew by only 5.6% vs.
20.9% in 1H09. We understand that the ANP was under pressure as Allianz introduced its first universal life product, the Income Generator.
- Maintain Outperform call with an unchanged SOP-derived fair value of RM5.32/share.


RHB Equity 360°(Allianz, CIMB, Sime, GentMsia, GentBhd, Sunrise, AEON, WTK, Kossan, Mah Sing,YNH, Puncak; ...

Mandarin Version : Market Technical Reading : Losing 1,390 and 10-day SMA Will Confirm A Correction Phase…-26/08/2010

Local Market Leads:
♦ Dampened by strong selldown in Asian regional markets amid more signs of a global economic slowdown, the FBM KLCI surrendered to the sellers and ended lower at below the 1,400 psychological level on Wednesday.
♦ Investors decided to lock in their short-term profits after the overnight US DJIA posted a triple-digit loss following a worse-than-expected slump in the US existing home sales in Jul.
♦ Also, most of the regional peers suffered further correction on growing fears that the global economy could head into another recession. Nikkei 225 stumbled another 1.67% to a fresh year low even after the Japanese
government warned of a possible intervention on the recent spike in the yen.
♦ Back home, the FBM KLCI broke below 1,400 and closed 8.80 pts or 0.63% lower to 1,396.97.
♦ Turnover eased to 873m shares, from Tuesday’s 894m shares. Market breadth continued to deteriorate with counters down outpacing counters up by a ratio of nearly 3 to 1.

Mandarin Version : Market Technical Reading : Losing 1,390 and 10-day SMA Will Confirm A Correction Phase…-...

Allianz Malaysia Berhad : Net Profit Grew 48.5% YoY - 26/08/2010

Within our expectation but above consensus. Allianz’s 1H FY12/10 net profit of RM52.8m came in at 48% of our and 58% of consensus full-year earnings forecasts respectively. We consider this to be in line with our expectation as the surplus transfer from the life fund will only be included in the earnings in the 4Q. We project RM12m transfer from the life fund. Stripping out the after-tax surplus transfer of RM8m (assuming 1H10 tax rate of 33.5%) based on our forecasts, Allianz 1H10 earnings made up 51.5% of our full-year forecast.

Allianz Malaysia Berhad : Net Profit Grew 48.5% YoY - 26/08/2010

MNRB Holdings Berhad : Above Expectations - 26/08/2010

Above expectation. MNRB’s 1Q FY03/11 net profit of RM26.1m was above our expectation, coming in at 54% of our full-year earnings forecast. Revenue, however, was in line at 24% of our topline estimate.


MNRB Holdings Berhad : Above Expectations-26/08/2010

Petra Perdana Berhad : Troubles Continue - 26/08/2010

♦ 2QFY10 results turn to losses. Despite having one of the lowest forecasts for the company in the market, we were nevertheless still surprised by the size of the operating loss in the 2Q. The operating loss was caused mainly by: 1) lease rental charges amounting to around RM20.2m incurred for five off-balance sheet vessels which were not working during the quarter; 2) mobilisation cost of RM5.9m for five new vessels that were delivered from May, including two 12k HP AHTS, two
workboats and one workbarge; and 3) higher repair and maintenance cost for old vessels. There was also a fair value adjustment of RM8.7m under FRS139. In total, 10 out of 23 vessels in the fleet were not working, including six old and four new vessels.

Petra Perdana Berhad : Troubles Continue - 26/08/2010

Wah Seong Corp Berhad : Significantly Weaker - 26/08/2010

♦ Significantly below. 6M10 net profit of RM18.7m accounted for 15.4% and
14.2% of our and consensus full-year estimates. Results were significantly
lower due to the sluggish oil and gas contract awards seen since late FY09
that led to a dearth of contracts for 1H10. Although the company warned
about the softer earnings, we were surprised at the extent of the
deterioration.

Wah Seong Corp Berhad : Significantly Weaker - 26/08/2010

KFC Holding (M) Berhad : Some Hiccups In India - 26/08/2010

Hiccups in India store openings… KFCH’s original plan was to open 12 outlets in FY2010, although we understand that the target is now trimmed to 7 outlets, with 2 already opened in Pune and Mumbai in March and April respectively. The reason for the lower targeted opening is due to the unexpected problems in the renovation of the stores combined with various red tape issues when getting approvals. For example, the Mumbai outlet took 5-6 months to complete while the Pune outlet took 7 months to complete, as compared to roughly 5 weeks to open a new outlet in Malaysia.

KFC Holding (M) Berhad : Some Hiccups In India-26/08/2010

Lafarge Malayan Cement Berhad : Improved Due to Higher Domestic Prices - 26/08/2010

In line. Despite 1HFY12/10 core net profit of RM123.7m accounting for only 34.3-32.4% of our full-year forecast and the full-year market consensus, we consider this to be in line as we expect 2H10 to come in stronger on the back of: 1) Stronger domestic cement selling prices (recall, domestic cement prices were raised by 10% since May 10); and 2) Stronger domestic demand ahead arising from the rollout/resumption of several large-scale projects.

Lafarge Malayan Cement Berhad : Improved Due to Higher Domestic Prices - 26/08/2010

Freight Management Berhad : FY06/10 Earnings Rose 21.1% YoY - 26/08/2010

♦ Within expectations. FY06/10 net profit was in line with our and market
expectations, accounting for 101.9% and 102.5% of our and consensus fullyear
forecasts. FY06/10 net profit grew 21.1% from RM13.6m to RM16.4m
mainly due to: (1) contributions from new services (i.e. land freight and
haulage) since FY06/09; and (2) Higher contributions for its supporting
services segment i.e. custom brokerage.

Freight Management Berhad : FY06/10 Earnings Rose 21.1% YoY - 26/08/2010

Emas Kiara Industries Berhad : 1HFY12/10 Net Profit Grows By A Whopping 86% YoY - 26/08/2010

♦ No issue. 1HFY12/10 net profit came within our expectation at 48% of our
full-year forecast.

Emas Kiara Industries Berhad : 1HFY12/10 Net Profit Grows By A Whopping 86% YoY - 26/08/2010

Market Technical Reading : Losing 1,390 and 10-day SMA Will Confirm A Correction Phase…-26/08/2010

Local Market Leads:
♦ Dampened by strong selldown in Asian regional markets amid more signs of a global economic slowdown, the FBM KLCI surrendered to the sellers and ended lower at below the 1,400 psychological level on Wednesday.
♦ Investors decided to lock in their short-term profits after the overnight US DJIA posted a triple-digit loss following a worse-than-expected slump in the US existing home sales in Jul.
♦ Also, most of the regional peers suffered further correction on growing fears that the global economy could head into another recession. Nikkei 225 stumbled another 1.67% to a fresh year low even after the Japanese
government warned of a possible intervention on the recent spike in the yen.
♦ Back home, the FBM KLCI broke below 1,400 and closed 8.80 pts or 0.63% lower to 1,396.97.
♦ Turnover eased to 873m shares, from Tuesday’s 894m shares. Market breadth continued to deteriorate with counters down outpacing counters up by a ratio of nearly 3 to 1.


Market Technical Reading : Losing 1,390 and 10-day SMA Will Confirm A Correction Phase…-26/08/2010

Fajarbaru Builder Group Berhad : FY06/10 Net Profit Jumps By A Whopping 72% Yoy - 26/08/2010

♦ 1-for-20 distribution of treasury shares. FY06/10 net profit came in within
our expectation. Fajarbaru has declared a 1-for-20 distribution of treasury
shares. This is in addition to 6sen/share single-tier cash dividends it has
already paid and a 1-for-25 distribution of treasury shares it has already
carried out during the year.

Fajarbaru Builder Group Berhad : FY06/10 Net Profit Jumps By A Whopping 72% Yoy - 26/08/2010

The World Economy... - 26/08/2010

Japan May Intervene To Curb The Sharp Rise In Yen

Japan’s policymakers hinted on 25 August that they may intervene in the currency market for the first time in more than six years to curb the surging yen and ease the already loose monetary policy. The sense of crisis is growing in Japan
after the US dollar, which was at as high as 95 yen in early May, sank to an intraday low of 83.58 yen on 24 August, nearing its 1995 record low of 79.75 yen, before rebounding slightly. Japan policymakers fear the strong yen could hurt
the country’s export-reliant recovery and worsen deflation. Although currency intervention could help, the results had not been satisfactory in the past especially if it is not a concerted effort by the major central banks in the world.



The World Economy... - 26/08/2010

Hock Seng Lee Berhad : 1HFY12/10 Net Profit Grows By A Whopping 36% YoY - 26/08/2010

No issue. 1HFY12/10 net profit came in at 42-43% of our full-year forecast and the full-year market consensus. However, we consider the results within expectations as we expect a stronger 2H ahead as construction activities gather momentum.

Hock Seng Lee Berhad : 1HFY12/10 Net Profit Grows By A Whopping 36% YoY - 26/08/2010

IJM Land Berhad : Above Expectations - 26/08/2010

♦ Above expectations. IJMLD’s 1QFY11 net profit of RM53.5m (doubled
from 1QFY10) exceeded our and consensus estimates by 20-25%. The
strong performance was mainly due to large number of property launches,
such as The Light Linear and Light Point, and hence sales generated since
April 2009, driven by improved buyer sentiment. EBIT margin improved to
24.5%, thanks to the better product mix of more higher-end properties.
Unbilled sales continue to remain healthy at about RM850m.

IJM Land Berhad : Above Expectations - 26/08/2010

IJM Plantations Berhad : Benefitting From Improved Prices, But Valuations Still Stretched - 26/08/2010

♦ In line. IJMP’s 1QFY03/11 core net profit was in line with our and consensus estimates, making up 23% of our and consensus FY03/11 projections. IJMP recorded an EI gain of RM2.5m in 1QFY03/11, relating to a gain on disposal of a plantation asset. No dividend was declared for the quarter.

IJM Plantations Berhad : Benefitting From Improved Prices, But Valuations Still Stretched - 26/08/2010

IJM Corporation Berhad : 1QFY03/11 Net Profit Grows 27% YoY - 26/08/2010

♦ No issue. 1QFY03/11 net profit came in at 21-22% of our full-year forecast and the full-year market consensus. However, we consider the results within expectations as we expect stronger quarters ahead as construction activities at newer projects that command higher margins gather momentum.

IJM Corporation Berhad : 1QFY03/11 Net Profit Grows 27% YoY - 26/08/2010