Affin Holdings Berhad : Loan Growth Momentum Appears Sustainable - 24/08/2010

♦ Affin yesterday held an analyst briefing with respect to its 2QFY12/10
results. We set out below the key highlights from the briefing.

Affin Holdings Berhad : Loan Growth Momentum Appears Sustainable - 24/08/2010

Corporate Highlights - 24/08/2010

♦ WTK Holdings
Visit Note : Gaining Momentum Outperform

♦ Affin Holdings
Briefing Note : Loan Growth Momentum Appears
Sustainable


Corporate Highlights - 24/08/2010

Mandarin Version : Affin Holdings Berhad : Supported By The 10-day And 40-day SMAs… - 23/08/2010

A possible medium-term positive sign on the chart of late. Affin has been
trading at above the uptrend since Mar 2009. Its uptrend extended further in Mar
2010, after the stock surpassed a key resistance level of RM2.70. But, after hitting a high of RM3.29 in Apr, it started the consolidation phase. However, for the past
three months, the stock has been trading near a key resistane level of RM3.08. On
the chart, the consolidation seems to be narrowing down to closer to the RM3.08
resistance level. Of late, the chart saw a possible medium-term positive sign when
the 10-day SMA cut above the 40-day SMA near RM3.03.

Mandarin Version : Affin Holdings Berhad : Supported By The 10-day And 40-day SMAs… - 23/08/2010

Affin Holdings Berhad : Supported By The 10-day And 40-day SMAs… - 23/08/2010

A possible medium-term positive sign on the chart of late. Affin has been
trading at above the uptrend since Mar 2009. Its uptrend extended further in Mar
2010, after the stock surpassed a key resistance level of RM2.70. But, after hitting a high of RM3.29 in Apr, it started the consolidation phase. However, for the past
three months, the stock has been trading near a key resistane level of RM3.08. On
the chart, the consolidation seems to be narrowing down to closer to the RM3.08
resistance level. Of late, the chart saw a possible medium-term positive sign when
the 10-day SMA cut above the 40-day SMA near RM3.03.

Affin Holdings Berhad : Supported By The 10-day And 40-day SMAs… - 23/08/2010

Affin Holdings Berhad : Low Allowance For Impairment Of Loans Helps Beat Estimates - 23/08/2010

♦ 2QFY10 results beat expectations yet again ... Affin’s 2Q10 net profit of RM112m (+24% yoy; -18% qoq) beat our and consensus estimates with 1H net profit of RM247m (+36% yoy) accounting for 60% of our and 57% of consensus full-year net profit forecasts. This was notwithstanding a RM30m provision charge for a legal case incurred during the quarter, partly cushioned by a gain on dilution of interest in associate of RM8m. The key variance was due to lower-than-expected impairment allowance on
loans (1H pre-impairment profit was in line, making up 48% of our fullyear estimates). As expected, Affin did not declare any dividend.

Affin Holdings Berhad : Low Allowance For Impairment Of Loans Helps Beat Estimates - 23/08/2010

Affin Holdings Berhad : Expanding Into Indonesia - 05/08/2010

Venturing into Indonesia. Affin announced yesterday it had entered into the following agreements: 1) share purchase agreement with PT Kharisma Prima Karya for the acquisition of a 20.8% stake in Bank Ina Perdana’s (Bank Ina) enlarged share base. The actual cash consideration will be determined later, based on a P/NTA multiple of 3.15x of the latest monthend balance sheet (completion balance sheet); 2) subscription agreement of new shares representing 59.2% of Bank Ina’s enlarged share capital. The subscription price will be based on the NTA/share as per the
completion balance sheet; and 3) a call and put option with PT Kharisma for 18% of Bank Ina’s enlarged share capital. The option price shall be based on a P/NTA multiple of 3.15x of Bank Ina’s future NTA/share.

Affin Holdings Berhad : Expanding Into Indonesia - 05/08/2010

RHB Equity 360° - 5 August 2010 (Sime Darby, Market, Affin, AirAsia, KFC; Technical: TDC, Kinsteel)

Top Story : Sime Darby – Is the worst over? Not yet, in our view - Underperform
Visit Note
- In the first few weeks of his appointment, Sime Darby’s new CEO, Dato’ Mohd Bakke Salleh, has visited all the divisions, met with all the Heads of Departments, reviewed the Group’s long term 4-year plan and set out a strategic plan for all the divisions. On 24 Aug, the Board will meet to review the plan and the results of the forensic audit for the oil & gas division, after which the results for 4QFY10 will be released on 26 Aug. Any further provision required for the two uncompleted projects, (ie. MOQ and Bakun, which are 96% complete), would be done in the 4QFY10 results.

RHB Equity 360° - 5 August 2010 (Sime Darby, Market, Affin, AirAsia, KFC; Technical: TDC, Kinsteel)

Affin Holdings Bhd : Legal Suit May Dent Upcoming 2QFY10 Results - 14/7/2010

Incurs RM48.2m sum on legal suit... Affin announced yesterday that pursuant to the decision of the High Court on a legal case (details below), it had paid a total of RM48.2m to Maybank.

Affin Holdings Bhd : Legal Suit May Dent Upcoming 2QFY10 Results - 14/7/2010

RHB Equity 360° - 14 July 2010 (Fajarbaru, Affin; Technical: Scomi Marine)

Top Story : Fajarbaru – Greenfield hotel project in Melaka a safe bet Outperform
Visit Note
- The greenfield hotel project in Melaka appears to be a safe bet given that its rooms will be sold to tour operators on a wholesale and long-term basis, and that the development also includes retail shops for sale.
- While the flow of small-scale public jobs has improved in recent months, Fajarbaru will rather stay conservative as far as job wins are concerned due to severe price undercutting, coupled with, we believe, the “lobbying” element that is making a quiet comeback to the market as a force to be reckoned with.
- Maintain Outperform, fair value is RM1.39.

RHB Equity 360° - 14 July 2010 (Fajarbaru, Affin; Technical: Scomi Marine)

RHB Equity 360° - 15 June 2010 (Gamuda, Sime Darby; Technical: Affin)

Top Story : Gamuda – 9MFY07/10 results to meet expectations

- Taking the cue from the improved construction margins recorded by IJM and WCT in their Jan-Mar 2010 results, we expect Gamuda's 3QFY07/10 results to come in roughly within expectations.

RHB Equity 360° - 15 June 2010 (Gamuda, Sime Darby; Technical: Affin)

Banking - BNM “Rejects” Affin’s Application To Commence Negotiations With EON Cap - 8/6/2010

BNM “rejects” Affin’s bid for EON Cap... Affin announced yesterday BNM’s reply that BNM was unable to consider Affin’s application to seek BNM’s approval to commence negotiation with EON Cap and its major shareholders. No further details were mentioned.

Banking - BNM “Rejects” Affin’s Application To Commence Negotiations With EON Cap - 8/6/2010

Corporate Highlights... - 01/06/2010

♦ Strategy / Earning Review : Downdraft Of Fear; Longer-term Outlook Still Positive

♦ Benchmarking
Market Update : Anticipating The Mid-Year Review

♦ Banking
Sector Update : Apr ‘10 System Data – Broadly Stable

♦ Sunway Holdings
News Update : Secures RM210m Building Job From SunCity

♦ Maxis
Results / Briefing Note : Delivering On Dividends

♦ Alliance Financial Group
Results Note : Lower-Than-Expected LLP Helps Beat Estimates

Corporate Highlights...-01/06/2010

Affin Holdings Berhad : Getting Off On The Right Foot - 1/6/2010

1QFY10 results above expectations... Affin reported 1QFY10 net profit of RM135m (+47.8% yoy; +60.8% qoq), which accounted for 32.9% of our and 31.5% of consensus full-year net profit forecasts respectively. The strong 1Q results vis-à-vis expectations was mainly due to the low allowance for impairment on loans during the quarter.

Affin Holdings Berhad : Getting Off On The Right Foot - 1/6/2010

RHB Equity 360° - 1 June 2010 (Earnings Review, Market, Banks, Sunway, Maxis, AirAsia, MNRB, Affin, WTK...)

Strategy Update
♦ After three consecutive quarters of positive earnings surprises, the earnings reporting season that has just ended showed that the bulk of the corporate results that we covered were within our (83.5%) as well as market (68.2%) expectations.
♦ Unlike the previous three quarters, there were no significant revisions to our individual company’s earnings numbers during this reporting season (except for Genting Bhd due to positive minority interest caused by exceptional items incurred in Genting S’pore and Genting M’sia), suggesting that major earnings upgrades have already been factored into analysts’ projections and that earnings growth might have peaked in 1Q.
♦ Sequentially, net EPS for FBM KLCI stocks under our coverage recovered to +10.6% qoq in the 1Q, after easing to +4.2% in 4Q09. Yoy, net EPS for FBM KLCI stocks continued to trend up and surged to a high of +35.6% in the 1Q, from +11.7% in 1Q09. The strong surge reflects partly a low base effect, although it points to sustained recovery in corporate earnings.

Economic Highlights - Broad Monetary Aggregate Moderated, But Loan Growth Bounced Back In April - 1/6/2010

Banking : Affin Entering Into The Fray For EON Cap? - 16/04/2010

Affin submits rival bid for EON Cap? According to the Financial Daily, Affin is believed to have submitted a rival bid for EON Cap. While the daily did not mention the offer price, the offer was believed to be higher than HL Bank’s offer (of RM5.06bn, cash) and includes a share equity element.

Banking : Affin Entering Into The Fray For EON Cap?-16/04/2010

RHB Equity 360° (MCIL, Pos, Petronas Gas; Technical: Affin) - 07/04/2010

Top Story : Media Chinese – Still An Outperform
Company Update
♦ MCIL has enjoyed a strong start to the year with its share price up 59.3% YTD. This has outperformed both the FBM KLCI (+5.4% YTD) and FBM100 (+6.2% YTD). We believe the strong share price performance has been due to factors such as improving economic conditions, which would generally benefit adex, and above-consensus quarterly results.
♦ We also note that ad spending for the Malaysian operations has got off on a strong note. According to Nielsen Media Research, YTD gross adex for MCIL’s Chinese dailies, namely, Sin Chew, Nanyang, China Press and Guang Ming, grew 20.6% yoy.
♦ Recall MCIL’s 3QFY10 EBIT margin for the publishing and printing division expanded by 7.0%-pts qoq. This was due to stronger ad revenue during the quarter, which would flow straight to operating profit, and on-going cost-control measures. With two major cost items which are newsprint and staff cost are kept under control, we think MCIL is poised to benefit from the upswing in ad spend ahead.
♦ Given the improved liquidity on the stock, we are raising our target CY10 PER to 13x (11x previously), which is at a 20% discount to our target PER for Star (of 16x) on account of its smaller market capitalisation.
♦ Our indicative fair value has been raised to RM1.09 (from RM0.92) and our Outperform call on the stock remains unchanged.

RHB Equity 360°( MCIL, Pos, Petronas Gas; Technical: Affin) - 07/04/2010

Corporate Highlights - 08/03/2010

Property - M-REITs
Sector Update : Expect Imminent Re-rating On Malaysian REITs

Magna Prima
Visit Note : The Gem Under The Radar Screen

Genting Singapore
News Update : Thrills And Spills Await

Market Technical Reading
Daily Trading Strategy : Critical Medium-term Bullish Chart Breakout Underway!

Affin Holdings
Weekly Trading Idea : Bargain Buy Near RM2.70 For A Rally Towards RM3.08

Commodities & Currencies
Weekly Technical Viewpoint : Positive On Commodities But Mixed Outlook On The US$

Corporate Highlights - 08/03/2010

Affin Holdings Berhad : Bargain Buy Near RM2.70 For A Rally Towards RM3.08…- 08/03/2010

Affin broke out from the tough hurdle of RM2.70 last Tuesday. After consolidating at between RM2.40 - RM2.70 region for nearly three-and-a-half months, Affin’s share finally broke out from the tough overhead hurdle of RM2.70 last Tuesday, spelling a bullish technical breakout. It then charged forward and marched to a high of RM2.86, its highest level since Nov 2007, before easing back to end with a negative candle on Friday, following a “shooting star” candle recorded on Thursday. It settled the week at RM2.80, well above the breakout point of RM2.70.

Affin Holdings Berhad : Bargain Buy Near RM2.70 For A Rally Towards RM3.08…- 08/03/2010

RHB Equity 360° (Property, Genting Singapore, Magna Prima; Technical: Proton, Affin) - 08/03/2010

Top Story : Property – Expect imminent re-rating on Malaysian REITs Overweight
Sector Note
♦ We like M-REITs due to their natural defensive qualities and solid property market fundamentals. Thesemake them excellent asset class in the current volatile market environment. On top of that, M-REITs is currently trading at attractive FY10 spread 10-year MGS, 10-year Cagamas bond and even its regional peer, S-REITs.
♦ The emergence of a new sector leader i.e. Suncity REIT in the M–REITS arena will help to inject excitement and interest into the sector. The REIT is expected to have an asset size of more than RM3.0bn. Given its size, it is expected to be the bellwether for the M–REITs industry and help to inject interest and excitement.
♦ We expect REIT players to renew their focus on portfolio expansion and growth in distributable income. Further acquisitions are likely in the coming year. We advocate that investors with lower risk appetite and longer-term investment horizon should position themselves in the M-REITs given their high yield and defensive nature. In addition, as the industry grows, liquidity will improve and we expect a sustainable narrowing of yield gap with S-REITs. Our current top pick for the sector is Axis REIT.

RHB Equity 360° Property, Genting Singapore, Magna Prima; Technical: Proton, Affin) - 08/03/2010

Corporate Highlights - 03/03/2010

♦ Daibochi
Briefing Note : Developments On Track

♦ Affin Holdings
News update : Acquisition of BH Insurance

♦ Market Technical Reading
Daily Trading Strategy : Short-term upswing momentum still intact...

Corporate Highlights - 03/03/2010