Axis REIT : Quattro West Started To Contribute - 21/10/2010

♦ Within expectations. Axis REIT’s 3Q10 realised net profit of RM12.6m
(+22.8% yoy; +3.9% qoq) was in line with our expectation and consensus
estimates. The headline net profit of RM24.3m included a fair value gain
amounted to RM11.7m arising from the revaluation of 7 properties.
Sequential revenue increased by 6.5%, mainly attributed to the contribution
of Quattro West (formerly known as Nestle House), which commenced its
operations in Aug, as well as positive rental reversion of 6.1% up to Sept
2010. A 4 sen DPU was declared for 3Q10. Including the 7.7 sen DPU paid in
1H10, 9M10 DPU amounted to 11.7 sen, on track to meet our FY10 DPU
forecast of 16.7 sen.


Axis REIT : Quattro West Started To Contribute - 21/10/2010

Axis REIT : Continue To Expand Portfolio - 25/08/2010

Another property. Axis REIT announced a proposed acquisition of a purpose built hypermarket complex – Tesco, inclusive of 1,096 car parking bays, from Bukit Indah (Johor) Sdn Bhd (BIJSB), for a total cash consideration of RM75.6m. BIJSB is a wholly owned subsidiary of SP Setia. The property is located within the Main Commercial Precinct of Setia EcoCity in Taman Bukit Indah, which is a mixed development project by SP Setia that straddles the Johor Bahru Parkway, close to its major interchange with the Second Link Expressway at about 11km from JB city centre. Including this new property as well as Axis Technology Centre and Axis PDI Centre (both pending completion of acquisition), total assets of Axis REIT will increase to about RM1.2bn, from RM907.7m in FY09.

Axis REIT : Continue To Expand Portfolio - 25/08/2010

Corporate Highlights - 20/7/2010

♦ Kuala Lumpur Kepong
Visit Note : Value and Growth – Our Preferred Sector Pick
Outperform

♦ Axis REIT
Results Note : 1HFY12/10 Net Property Income Grows 18% YoY
Outperform

Corporate Highlights - 20/7/2010

Axis REIT - 1HFY12/10 Net Property Income Grows 18% YoY - 20/07/2010

4sen distribution for 2QFY12/10. Excluding RM12.3m property fair value and derivative gains, normalised 1HFY12/10 net profit of RM23.8m came in within expectations at 47-48 of our full-year forecast and the full-year market consensus. Axis REIT declared income distribution of 4sen for 2QFY12/10. Cumulatively, for 1HFY12/10, Axis REIT has declared income distribution of 7.7sen that makes up 47% of our full-year forecast of 16.4sen.

Axis REIT - 1HFY12/10 Net Property Income Grows 18% YoY - 20/07/2010

RHB Equity 360° - 20 July 2010 (KLK, Axis REIT; Technical: L&G)

Visit Note
- Five key points: 1) Strong FFB growth to continue for rest of FY9/10 coming from existing plantations and contribution from Indonesian JV; 2) Continued double digit growth expected for FY11 3) CPO price view unchanged; 4) More details on new Germany plant acquisition;; and 5) More land acquisitions coming?
- KLK’s recent acquisition of the 150,000-tonne Uniqema oleochemical plant in Emmerich, Germany is a step in the right direction, in our view. Although this plant reported an operating loss of €2.1m in 2009, KLK expects to be able to turn around the operations to record a profit within the first year of operations. This
confidence stems from its plans to: 1) upgrade the old technology that the plant currently runs on; 2) implement a hedging policy on its sales and purchases contracts, which is non-existent currently; and 3) integrate its upstream operations with the downstream operations in EU to achieve operational synergies. One of the main advantages of this Uniqema plant is the ownership of its own jetty and its ample storage tanks and warehousing facilities, as KLK intends to now send all its oil destined for the European market to Emmerich instead of Rotterdam. This will not only save KLK storage costs, given that currently, all of its oil is stored in third party tanks in Rotterdam, but will also give it a competitive advantage against other
downstream players.

RHB Equity 360° - 20 July 2010 (KLK, Axis REIT; Technical: L&G)

Corporate Highlights - 4/6/2010

♦ Wah Seong Corporation
Visit Note : Hit A Speed Bump

♦ Axis REIT
News Update : Acquiring Two Industrial Properties For RM134m, Proposes Placement Of 68.8m New Units

♦ Market Technical Reading
Daily Trading Strategy : Sellers To Return Near 1,300...

Corporate Highlights - 4/6/2010

Axis REIT - Acquiring Two Industrial Properties For RM134m, Proposes Placement Of 68.8m New Units - 4/6/2010

To buy two industrial properties, placement of 68.8m new units. Axis REIT (Axis) has proposed to acquire two industrial properties in Selangor for RM85m and RM49m cash respectively, and placement of 68.8m new units(translating to 22.4% of Axis’ existing units) that will raise an estimated RM130m, based on an indicative issue price of RM1.89/unit. The properties will be renamed Axis PDI Centre and Axis Technology Centre and fetch yields of 9.5% and 8.1% p.a., vis-à-vis Axis’ current trading yield of 8.2%.

Axis REIT - Acquiring Two Industrial Properties For RM134m, Proposes Placement Of 68.8m New Units - 4/6/2010

RHB Equity 360° - 4 June 2010 (Wah Seong, BAT, Axis REIT; Technical: Unisem)

While ShawCor’s successful acquisition of Socotherm would further strengthen its near global monopoly of specialist pipe-coating, management highlighted that Wah Seong is in a strong position to acquire other pipe coaters which currently do not have deepwater pipe coating assets and have limited geographical reach. Nevertheless, identifying sizeable pipe-coating assets will take time and we believe any M&A is unlikely in the near term.

RHB Equity 360° - 4 June 2010 (Wah Seong, BAT, Axis REIT; Technical: Unisem)

Corporate Highlights...-21/04/2010

TM
Visit Note : Higher Dividend, Possibly. Market Perform

Formis Resources
Company Update : Major Contract On The Platter. Not Rated

Tenaga Nasional
Results / Briefing Note : Demand Growth Turning Out Stronger Than Expected. Outperform

M’sian Airline System
Briefing Note : Flights To Europe To Resume Today, To Cap Net Gearing At 2x Over The Next Three Years. Underperform

Gamuda
News Update : Splash Sweetens Takeover Offer For Klang Valley Water Assets By Forgoing Ownership

Corporate Highlights...-21/04/2010

Axis REIT : Buys Property In Port Of Tanjung Pelepas - 21/04/2010

Within expectations. Excluding unrealised gains of RM2.6m, Axis REIT reported RM11.7m net profit in 1QFY12/10 (+0.8% qoq and +12.4% yoy). This was within expectations, accounting for 23-24% of our and consensus estimates. The 12.4% yoy earnings growth was mainly driven by contributions from its newly-acquired assets in FY09 i.e. Axis Steel Centre, Bukit Raja Distribution Centre and Prai industrial buildings (which were completed on 5 March 10). The company has proposed an interim dividend of 3.7 sen for 1Q10, which was in line with our expectation. Meanwhile, the company’s gearing ratio increased from 0.34x (4Q09) to 0.35x as at end-1Q10 following the acquisition of Prai buildings.

Axis REIT : Buys Property In Port Of Tanjung Pelepas -21/04/2010

Axis REIT : Buys Property In Port Of Tanjung Pelepas - 21/04/2010

Within expectations. Excluding unrealised gains of RM2.6m, Axis REIT reported RM11.7m net profit in 1QFY12/10 (+0.8% qoq and +12.4% yoy). This was within expectations, accounting for 23-24% of our and consensus estimates. The 12.4% yoy earnings growth was mainly driven by contributions from its newly-acquired assets in FY09 i.e. Axis Steel Centre, Bukit Raja Distribution Centre and Prai industrial buildings (which were completed on 5 March 10). The company has proposed an interim dividend of 3.7 sen for 1Q10, which was in line with our expectation. Meanwhile, the company’s gearing ratio increased from 0.34x (4Q09) to 0.35x as at end-1Q10 following the acquisition of Prai buildings.

axis1Q10

RHB Equity 360° (TM, Infra, TNB, Axis REIT, Quill Capita, MAS, Gamuda, Formis; Technical: Faber) - 21/04/2010

Top Story : TM – Higher dividend, possibly Market Perform
Visit Note
♦ TM’s UniFi packages has registered a take-up of 600 households as of 5 Apr 10. Although most of these subscribers were previously Streamyx users, nevertheless, UniFi would generally help TM both in terms of customer retention and acquisition in the rollout areas over the long run.
♦ Net adds for broadband has improved yoy since Dec 09, thanks to lower churn rate and the introduction of the “super upgrade deal” since Nov 09. While the “super upgrade deal” would result in higher ARPU, the accretive effect would only be felt from May onwards.
♦ Management did not rule out the possibility of paying shareholders in excess of the minimum of RM700m dividend, but neither did management provide a firm commitment to do so. Between special dividends and a higher minimum dividend policy, we sensed management’s preference would be for special dividends.
♦ Indicative fair value remains unchanged at RM3.55, which is based on a required net yield return assumption of 5.5% on the minimum RM700m dividends.

RHB Equity 360°(TM, Infra, TNB, Axis REIT, Quill Capita, MAS, Gamuda, Formis; Technical: Faber) - 21/04/2010