LPI Capital Berhad : Below Expectations - 08/10/2010

♦ Below expectations. LPI recorded 3QFY12/10 net profit of RM36.2m (+36.9% qoq) which brought its 9M10 earnings to RM101m (+10.8% yoy). This accounted for 68.6% and 60% of our and consensus full year expectations respectively. The deviation was mainly due to lower-thanexpected surplus transfer from the General Insurance (GI) account. No dividend was declared during the quarter.

LPI Capital Berhad : Below Expectations - 08/10/2010

RHB Equity 360° (Strategy, Banks, Fajarbaru, Hiap Teck; Technical: Sime Darby) - 01/10/2010

Top Story : 4Q2010 Market Outlook And Strategy – Volatility as economic worries persist
Strategy Update
- The impending release of the 2011 Budget, detailed ETP blueprint, award of major infrastructure contracts and Federal land deals, and the Sarawak state elections would likely create news flow and spur investors’ interest on the construction and property sectors.
- Nevertheless, as valuations of the local bourse are no longer cheap, it is susceptible to any adverse developments in the external sector and cause volatility to the market.
- Although we are less sanguine on the near-term outlook, we believe there is still room for the market to trend higher in 2011. This is primarily predicated on the view that the global economic recovery is more sustainable than feared, which in turn implies sustained corporate earnings growth (+12.9% projected for
2011) that will continue to create new shareholders’ value for investors.
- Our end-2011 FBM KLCI target remains unchanged at 1,640, based on 15x mid-cycle 2012 earnings. This, however, will not be without volatility as the global economy enters into a period of slowing growth in an uneven phase of recovery.
- Whilst we acknowledge that the long-term economic picture remains positive for the equity market, the revival of a “double-dip” recession fear can have a disproportionate impact on the market in the foreseeable future. Under such circumstances, it may be timely for investors to do some top slicing on stocks where valuations have become rich in the run-up of the market. This would then provide more room for investors to accumulate fundamentally-robust stocks on weakness.

RHB Equity 360° (Strategy, Banks, Fajarbaru, Hiap Teck; Technical: Sime Darby)-01/10/2010

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

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

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

RHB Equity 360° - (KFC, Parkson, Axiata, Gent Plant, Freight, HSL, Fajarbaru, Emas Kiara, IJMC, IJML, IJMP, MCIL, Allianz, MNRB, Lafarge, Wah Seong,..

Visit Note
- KFCH’s original plan was to open 12 outlets in FY2010, although we understand that target is now trimmed to 7 outlets. The reason for the lower target openings is due to the unexpected problems in the renovation of the stores combined with various red tape issues when getting approvals.

RHB Equity 360° - (KFC, Parkson, Axiata, Gent Plant, Freight, HSL, Fajarbaru, Emas Kiara, IJMC, IJML, IJMP,...

Allianz Malaysia Berhad : ICPS Rights To Commence Trading - 9/7/2010

Rights to be traded. The rights to purchase Allianz’ Irredeemable Convertible Preference Shares (ICPS) will start trading on 9 Jul, and will cease trading at 5pm 16 Jul. Allianz’ share price has already been adjusted ex-rights as at 6 Jul, to RM3.83. Every 100 Allianz shares held will be entitled to rights to purchase 125 ICPS. The rights will thus be priced at 61 sen, i.e. the difference between the share price and the ICPS issue price.

Allianz Malaysia Berhad : ICPS Rights To Commence Trading - 9/7/2010

RHB Equity 360° - 9 July 2010 (Allianz, Banks, KNM, LPI; Technical: Magna Prima)

Company Update
- The rights to purchase Allianz ICPS will start trading on 9 Jul and will cease trading at 5pm 16 Jul. We estimate the rights will trade at an estimated price of 61 sen.
- Based on our estimates of 35% and the assumption that the ICPS are worth the same as the ordinary shares, together with the 1.2x dividend payout for the ICPS, we believe the ICPS should trade at a premium of 20% from the ordinary share, or at RM4.55 after neutralizing the yield impact. This implies that the rights could trade up to RM1.37.
- We are maintaining our earnings forecast while adjusting our fair value after taking into account: 1) the fully diluted EPS after adjusting for ICPS; 2) the rollover of our base valuation year to FY11. Our new fair value for Allianz is RM5.32

RHB Equity 360° - 9 July 2010 (Allianz, Banks, KNM, LPI; Technical: Magna Prima)

Corporate Highlights - 31/5/2010

♦ MCIL
Briefing Note : Expecting Stronger Adex Ahead

♦ Tenaga Nasional
News Update : Cutting Subsidies For A Better Tomorrow

Corporate Highlights - 31/5/2010

Allianz Malaysia Berhad : Strong Premium Growth For 1QFY12/10 - 31/5/2010

Strong premium growth for both general and life. For 1QFY12/10, Allianz posted strong yoy growth of 29.0% and 35.6% in gross premiums for its general and life businesses respectively. For its general business, gross premiums grew to RM361.7m from RM280.4m in 1QFY12/09. Its general insurance agency force contributed 53% of gross written premiums, while for its life business, premium growth was driven by increased agency manpower, which contributed 86.9% of annualised new premiums (ANP).

Allianz Malaysia Berhad : Strong Premium Growth For 1QFY12/10 - 31/5/2010

RHB Equity 360° (MCIL, Consumer, Allianz, TNB, PLUS, Dialog, Fajarbaru, Axiata, TM, Gent Msia, Genting, Sime, CBIP, Ta Ann, ...) - 31/05/2010

Top Story : MCIL – Expecting stronger adex ahead - Outperform
Briefing Note

- Management expects stronger ad revenue ahead with bookings visibility having improved to around two months as opposed to only a month a year ago. We believe ad spending in the months ahead should see further improvement, in tandem with a recovering economy and sporting events ahead.

- Currently, the Hong Kong and Malaysian operations are carrying around 3 and 8 months worth of newsprint stock respectively at an average cost of US$550-580. This lower cost should bode well for the group ahead but a dampener is that the current newsprint price is around US$700/tonne. MCIL’s strategy would be to wait for the newsprint price to drop in order to stock-up more.

- MCIL has also been expanding its presence in the digital media platform by entering into mobile reading market in China through ByRead and introducing an entertainment website called Hihoku in Nov 2009. Total capex spent on expanding its digital media platform was said to be minimal (approximately HK$2m) and management expects to spent another HK$2m p.a. moving forward.

- Our fair value is maintained at RM1.14, based on unchanged target CY10 PER of 13x.

RHB Equity 360° (MCIL, Consumer, Allianz, TNB, PLUS, Dialog, Fajarbaru, Axiata, TM, Gent,Sime, CBIP, Ta Ann...

Allianz Malaysia Berhad : 1QFY12/10 Results Within Expectations - 27/05/2010

Within expectations. Allianz recorded 1QFY12/10 net profit of RM23.2m, an increase of RM2.93m or 14.5% yoy. Revenue increased by 28.2% yoy, underpinned by growth in both life and general insurance gross premiums. 1Q net profit came in at 21% of our full year earnings estimate and 25.5% of consensus estimate, which we consider to be in line with expectations.

Allianz Malaysia Berhad : 1QFY12/10 Results Within Expectations-27/05/2010

RHB Equity 360° (MPI, Ta Ann, KLK, RCE, Gent Plant, IJM Land, IJM Plant, IJM Corp, Proton, Tan Chong, Mah Sing, Allianz, MCIL; Technical: UEM Land)

Top Story : MPI – Stronger Growth Ahead Outperform
Briefing Note
♦ MPI expects 4QFY06/10 revenue to register stronger qoq growth, given that 3QFY06/10 qoq growth of +2.0% which bucks the trend of a seasonally weaker quarter.
- Also, MPI expects 4QFY06/10 net profit to grow sequentially on the back of:
1) higher utilisation rate;
2) stronger contribution from MLP and high-density packages; and
3) margin expansion stemming from higher contribution of high-density packages and cost-cutting measures.
♦ We understand that overall utilisation rates have increased to 95% from 85% in 2QFY06/10. Note that utilisation rates for Ipoh, Suzhou, and Dynacraft plants currently stands at 95%, 100%, and 90% respectively (vs. 90%, 100%, and 85% in 3QFY06/10).
♦ Separately, with Ipoh and Suzhou plants currently running at full-capacity, we understand that MPI expects to raise capacity for these plants by 25% and 30% by Sep-10. Note that MPI is targeting to increase its higher-margin MLP capacity to 12m/day by end-FY10 (vs. 8m/day currently). In addition, management had stated that it will be using the spare capacity from the Advance Packages (AP) line to expand its MLP packages as well as high-density packages. Furthermore, given the capex of around RM3m for its new etch and strip plating capacity, MPI expects capacity for Dynacraft’ to increase by 20%.
♦ Maintain Outperform with a fair value of RM8.46/share.

RHB Equity 360°( MPI, Ta Ann, KLK, RCE, Gent Plant, IJM Land, IJM Plant, IJM Corp, Proton, Tan Chong,Mah Si...

Corporate Highlights - 29/4/2010

Sime Darby
Visit Note : Short-Term Weakness In FFB Production,But Long-Term Sustainability Intact

Media
Sector Update : Another Strong Month For Print and TV Adex Neutral

Construction
Sector Update : Prasarana Pre-qualifies Contractors For LRT Line Extension Project

Corporate Highlights - 29/4/2010

Allianz Malaysia Berhad : Subscribe For The ICPS

Briefing highlights. AMB held an analysts’ briefing yesterday to discuss the proposed ICPS issue. Although the company had explored various capital raising options, management decided the ICPS was the best option to address the RM490m inter-company loan from Allianz SE, as well as the internal capital requirement under the RBC framework. More details on the ICPS will be given closer to the EGM which is scheduled for 24 Jun.

Allianz Malaysia Berhad : Subscribe For The ICPS

RHB Equity 360° - 29 April 2010 (Sime Darby, Construction, Media, Allianz, Sunway, Ann Joo, Fajarbaru, YNH; Technical: WCT)

Top Story : Sime Darby – Short-term weakness in FFB production, but LT sustainability intact. Outperform.
Visit Note:
Six key takeaways from our recent visit:
1) Slower FFB production in Indonesia now;
2) Longer-term FFB growth sustainable;
3) CPO price view unchanged;
4) Production costs to decline, but not as significantly as seen in 1HFY10;
5) Property division picking up speed; and
6) Capex higher than expected.

RHB Equity 360° - 29 April 2010 (Sime Darby, Construction, Media, Allianz, Sunway, Ann Joo, Fajarbaru, YNH;...

Allianz Malaysia Berhad : Proposed Rights Issue Of ICPS - 27/04/2010

Rights issue proposed. Allianz yesterday proposed a renounceable rights issue of new irredeemable convertible preference shares (ICPS). Other than the targeted gross proceeds of RM611m, and the preferential dividend rate of 1.2x the declared dividend for Allianz shares in the same year, other terms of the proposal have yet to be determined.

Allianz Malaysia Berhad : Proposed Rights Issue Of ICPS -27/04/2010

Top Glove Corporation Berhad : Proposes 1-For-1 Bonus Issue-27/04/2010

Bonus issue of 1-for-1. Top Glove yesterday declared a 1-for-1 bonus issue. Assuming all existing 6.6m treasury shares are resold in the open market (maximum scenario), up to 348.0m bonus shares will be issued, bringing Top Glove’s total issued share capital to 696.0m upon completion. The entitlement date will only be announced later.

Top Glove Corporation Berhad : Proposes 1-For-1 Bonus Issue-27/04/2010

RHB Equity 360° (Genting Singapore, Cement, Furniture, Allianz, Top Glove, EPIC; Technical: Measat) - 27/04/2010

Top Story : Genting Singapore – The competition starts now Outperform
Visit Note
♦ The Casino Regulatory Authority issued a casino licence to Marina Bay Sands (MBS) yesterday, 26 Apr. Nevertheless, recall RWS needed a few days to reset the systems back to zero and to get the real “chips” ready before it could officially open, and the casino only opened a full 8 days after the licence was awarded. If we assume a similar scenario, MBS may only open in a few days time.
♦ We believe MBS would likely face similar teething issues and would also take some ime to ramp up the hotel rooms and gaming tables to full capacity. As such, while we do expect to see some shift in visitors to MBS, we believe the effect could be short term. In addition, we expect MBS’ opening to actually enlarge, rather than shrink, the gaming market, as more visitors would likely come through Singapore once both casinos are open, as the “pull factor” would be greater.
♦ Seven takeaways from recent RWS visit: 1) >60% of tables operating currently; 2) no significant drop in visitor numbers since CNY; 3) table drops in line with expectations, mass table limits raised; 4) still waiting for junket approvals; 5) hotels still fully occupied; 6) Universal Studios Singapore tickets doubled up
already; and 7) pre-operating losses to be lower qoq in 1QFY10.
♦ Post-visit, we have tweaked our FY10-12 forecasts slightly, by +0.4-0.8%. No change to our S$1.35 fair value, based on blended average of EV/EBITDA (12x FY11 based on regional average) and DCF methodologies. At current price levels, GS’ FY11 EV/EBITDA of 11.8x is now at a 6.3% discount to FY11 regional peers average of 12.6x and 20% discount to Macau peers average. As such, while we expect some potential downside in share price upon opening of MBS, we believe downside risk is limited at these levels and advise investors to take this opportunity to buy the shares on weakness. Maintain Outperform.

RHB Equity 360°(Genting Singapore, Cement, Furniture, Allianz, Top Glove, EPIC; Technical: Measat) - 27/04/...

Allianz Malaysia Berhad : To Grow Both Life and General Business - 02/03/2010

General insurance. In FY09, Allianz has been aggressively growing its motor segment but this trend is expected to reverse in FY10, as it looks for healthier premium portfolio mix. In fact, this strategy has commenced in 4Q09, as gross premium in the quarter declined by 27.9% qoq, as it has put more stringent underwriting policy in containing motor premium growth. Thus, claims ratio is expected to remain below industry average atcirca 60% p.a..

Allianz Malaysia Berhad : To Grow Both Life and General Business - 01/03/2010