♦ Shifting Trends
Market update : Seeking Shelter In Domestic Plays
♦ Consumer Sector - Tobacco
Sector Update : Industry Changes From AFTA-Cept
♦ Building Materials
Sector Update : Steel Sub-sector Running Out of Steam
♦ Perwaja Holdings
Results Note : In Line, Expecting Weaker 2H
♦ Kinsteel
Results Note : In Line; Anticipating Weaker 2H
♦ Malaysian Pacific Industries
Results Note : FY11 Earnings Growth To Be Driven By X3-MLP
Corporate Highlights...-25/05/2010
Showing posts with label Building Materials. Show all posts
Showing posts with label Building Materials. Show all posts
Wednesday, May 26, 2010
Building Materials : Steel Sub-sector Running Out of Steam - 26/05/2010
Good times for steel sub-sector are fast slipping away, anticipating weaker 2H. We are now turning bearish on the steel sub-sector, as:
1. Prices of key steelmaking inputs, in particular, scraps and iron ore are falling and lower input prices will weigh down on steel prices;
2. Concerns on overcapacity in China has heightened; and
3. The risk on a sharper-than-expected slowdown in global economy has heightened.
This will affect buying sentiment on consumer goods (such as automobiles and electric appliances) as well as property demand, hence filtering down to steel consumption.
Building Materials : Steel Sub-sector Running Out of Steam - 26/05/2010
1. Prices of key steelmaking inputs, in particular, scraps and iron ore are falling and lower input prices will weigh down on steel prices;
2. Concerns on overcapacity in China has heightened; and
3. The risk on a sharper-than-expected slowdown in global economy has heightened.
This will affect buying sentiment on consumer goods (such as automobiles and electric appliances) as well as property demand, hence filtering down to steel consumption.
Building Materials : Steel Sub-sector Running Out of Steam - 26/05/2010
Tuesday, April 27, 2010
Corporate Highlights - 27/04/2010
♦ Genting Singapore
Visit Note : The Competition Starts Now
♦ Manufacturing
Sector Update : Highlights From Timber & Furniture Day
♦ Building Materials
Sector Update : Higher Cement Prices Effective 1 May 10
♦ Top Glove Corporation
News Update : Proposes 1-For-1 Bonus Issue
♦ EPIC
Results Note : No Surprises
Corporate Highlights - 27/04/2010
Visit Note : The Competition Starts Now
♦ Manufacturing
Sector Update : Highlights From Timber & Furniture Day
♦ Building Materials
Sector Update : Higher Cement Prices Effective 1 May 10
♦ Top Glove Corporation
News Update : Proposes 1-For-1 Bonus Issue
♦ EPIC
Results Note : No Surprises
Corporate Highlights - 27/04/2010
Building Materials : Higher Cement Prices Effective 1 May 10...-27/03/2010
Higher cement prices effective 1 May 10. Various sources have confirmed that cement prices will increase effective 1 May 10 to reflect escalating energy prices, in particular, thermal coal, the price of which has increased by 12.4% YTD. We gathered that selling prices of both 50kg bagged cement and bulk cement will be raised by approximately 9-10% to RM15.50-16.50/bag and RM300/tonne respectively effective 1 May 10.
Building Materials : Higher Cement Prices Effective 1 May 10...-27/03/2010
Building Materials : Higher Cement Prices Effective 1 May 10...-27/03/2010
Thursday, April 1, 2010
Corporate Highlights...-01/04/2010
♦ Market Outlook & Strategy 2Q2010 : Volatile Market Uptrend Amid Policy Normalisation
♦ Benchmarking
Market Update : First Quarter Review
♦ Plantation
Sector Update : USDA Planting Intentions – Concentrating On Corn, Not Soybean
♦ Plantation
Sector Update : Smooth Or Bumpy Ride Ahead?
♦ Telecommunicatons
Sector Update : Digi Unveils iPhone Plans
♦ Building Materials
Sector Update : Japanese and Chinese Steelmakers Conclude 2Q Iron Ore Benchmark Price
Corporate Highlights...-01/04/2010
♦ Benchmarking
Market Update : First Quarter Review
♦ Plantation
Sector Update : USDA Planting Intentions – Concentrating On Corn, Not Soybean
♦ Plantation
Sector Update : Smooth Or Bumpy Ride Ahead?
♦ Telecommunicatons
Sector Update : Digi Unveils iPhone Plans
♦ Building Materials
Sector Update : Japanese and Chinese Steelmakers Conclude 2Q Iron Ore Benchmark Price
Corporate Highlights...-01/04/2010
Building Materials Sector Update : Japanese and Chinese Steelmakers Conclude 2Q Iron Ore Benchmark Price - 01/04/2010
Iron ore contract price for 2Q10 concluded. The world’s top two iron ore producers (Vale and BHP Billiton) concluded the 2Q10 iron ore price with Chinese and Japanese steelmakers at US$110-120/tonne, nearly double the benchmark price in 2009. The latest development also indicates that the 35-year old annual benchmark pricing system has ended and replaced by a quarterly benchmark pricing system.
Building Materials Sector Update : Japanese and Chinese Steelmakers Conclude 2Q Iron Ore Benchmark Price - ...
Building Materials Sector Update : Japanese and Chinese Steelmakers Conclude 2Q Iron Ore Benchmark Price - ...
Monday, March 29, 2010
Corporate Highlights..29/03/2010
♦ Sarawak Focus
Market Update : Settling The SCORE
♦ Building Materials
Sector Update : Investors’ Risk Appetite For Cement Stocks To Improve
♦ Building Materials
Sector Update : Near-Term Outlook “Steel” Good
♦ Insurance
Sector Update : Gearing Up For Liberalisation And Improving Earnings Prospects
♦ Market Technical Reading
Daily Trading Strategy : Revisiting The Recent High Of 1,334.34 Soon...
♦ UEM Land Holdings
Weekly Trading Idea : Confirmed Breakout From The RM1.46 Resistance Level…
Corporate Highlights...-29/03/2010
Market Update : Settling The SCORE
♦ Building Materials
Sector Update : Investors’ Risk Appetite For Cement Stocks To Improve
♦ Building Materials
Sector Update : Near-Term Outlook “Steel” Good
♦ Insurance
Sector Update : Gearing Up For Liberalisation And Improving Earnings Prospects
♦ Market Technical Reading
Daily Trading Strategy : Revisiting The Recent High Of 1,334.34 Soon...
♦ UEM Land Holdings
Weekly Trading Idea : Confirmed Breakout From The RM1.46 Resistance Level…
Corporate Highlights...-29/03/2010
UEM Land Holdings : Confirmed Breakout From The RM1.46 Resistance Level…-29/03/2010
♦ Sarawak Focus
Market Update : Settling The SCORE
♦ Building Materials
Sector Update : Investors’ Risk Appetite For Cement Stocks To Improve
♦ Building Materials
Sector Update : Near-Term Outlook “Steel” Good
♦ Insurance
Sector Update : Gearing Up For Liberalisation And Improving Earnings Prospects
♦ Market Technical Reading
Daily Trading Strategy : Revisiting The Recent High Of 1,334.34 Soon...
♦ UEM Land Holdings
Weekly Trading Idea : Confirmed Breakout From The RM1.46 Resistance Level…
UEM Land Holdings : Confirmed Breakout From The RM1.46 Resistance Level…-29/03/2010
Market Update : Settling The SCORE
♦ Building Materials
Sector Update : Investors’ Risk Appetite For Cement Stocks To Improve
♦ Building Materials
Sector Update : Near-Term Outlook “Steel” Good
♦ Insurance
Sector Update : Gearing Up For Liberalisation And Improving Earnings Prospects
♦ Market Technical Reading
Daily Trading Strategy : Revisiting The Recent High Of 1,334.34 Soon...
♦ UEM Land Holdings
Weekly Trading Idea : Confirmed Breakout From The RM1.46 Resistance Level…
UEM Land Holdings : Confirmed Breakout From The RM1.46 Resistance Level…-29/03/2010
Building Materials : Investors’ Risk Appetite For Cement Stocks To Improve - 29/03/2010
♦ Cement sub-sector due for a re-rating. Share prices of cement producers under RHBRI’s coverage (Lafarge and YTL Cement) have underperformed the market by 3.7-4.6% pts YTD. We believe the cement sub-sector is due for a re-rating, prompted by:
1. New expectations leading up to the announcement of 10MP, which will in turn boost investors’ risk appetite towards construction-related stocks; and
2. The anticipation of a meaningful pick-up in domestic cement consumption from 2Q 2010.
Building Materials : Investors’ Risk Appetite For Cement Stocks To Improve - 29/03/2010
1. New expectations leading up to the announcement of 10MP, which will in turn boost investors’ risk appetite towards construction-related stocks; and
2. The anticipation of a meaningful pick-up in domestic cement consumption from 2Q 2010.
Building Materials : Investors’ Risk Appetite For Cement Stocks To Improve - 29/03/2010
Building Materials : Near-Term Outlook “Steel” Good - 29/03/2010
♦ Steel price rally likely to sustain over the near term. We believe that global steel price strength is likely to sustain over the near term, underpinned by:
1. Rising iron ore prices. Given that the annual iron ore contract price has yet to be finalised and global iron ore miners are pushing for a significant increase in 2010 iron ore contract prices, we believe spot prices of iron ore are likely to trend up further and this will lend support to steel prices globally;
2. Seasonally strong demand. Steel consumption is seasonally strong in 2Q on the back of good weather and worldwide seasonal stock replenishing activities; and
3. Less concerns on overcapacity, at least for now. This is mainly on the back of the still-rosy near-term demand outlook. Also helping, is the Chinese government’s intensified efforts in curbing excess capacity in the country’s steel sector.
Building Materials : Near-Term Outlook “Steel” Good - 29/03/2010
1. Rising iron ore prices. Given that the annual iron ore contract price has yet to be finalised and global iron ore miners are pushing for a significant increase in 2010 iron ore contract prices, we believe spot prices of iron ore are likely to trend up further and this will lend support to steel prices globally;
2. Seasonally strong demand. Steel consumption is seasonally strong in 2Q on the back of good weather and worldwide seasonal stock replenishing activities; and
3. Less concerns on overcapacity, at least for now. This is mainly on the back of the still-rosy near-term demand outlook. Also helping, is the Chinese government’s intensified efforts in curbing excess capacity in the country’s steel sector.
Building Materials : Near-Term Outlook “Steel” Good - 29/03/2010
RHB Equity 360° (Market, Steel, Cement, Insurance; Technical: Mulpha, UEM Land) - 29/03/2010
Top Story : Sarawak Focus – Settling the SCORE
Market Update
Sarawak is due to hold its state elections at the latest by May 2011, although indications are that polls could be held this year. The constant news flow will likely be the catalyst for local companies there.
We maintain our view that SCORE is the most attractive of the five economic corridors launched by former PM Tun Abdullah Ahmad Badawi given the significant potential for cheap energy which is being used to attract energy-intensive industries. This will have knock-on effects on the construction, building materials and housing sectors.
The immediate focus will likely be on Sarawak’s natural resources including palm oil, timber and oil & gas, although construction stocks like HSL will clearly be an early beneficiary from the infrastructure projects.
Other key considerations are the FDI that will be attracted especially in the energy-based industries, as well as the Sarawak state election itself.
As it stands, the Sarawak-based companies like HSL, Naim, CMS and Weida have already outperformed the FBM KLCI for the YTD, and in our view will continue to be supported by positive news flow. Among the Sarawak stocks that we cover, we believe HSL will likely be a prime beneficiary of more construction contracts. The timber players are less tied into domestic projects but nevertheless could potentially be involved in other downstream activities. We believe the plantation companies may also be beneficiaries if the state government opens up more land for oil palm plantations.
RHB Equity 360° (Market, Steel, Cement, Insurance; Technical: Mulpha, UEM Land) - 29/03/2010
Market Update
Sarawak is due to hold its state elections at the latest by May 2011, although indications are that polls could be held this year. The constant news flow will likely be the catalyst for local companies there.
We maintain our view that SCORE is the most attractive of the five economic corridors launched by former PM Tun Abdullah Ahmad Badawi given the significant potential for cheap energy which is being used to attract energy-intensive industries. This will have knock-on effects on the construction, building materials and housing sectors.
The immediate focus will likely be on Sarawak’s natural resources including palm oil, timber and oil & gas, although construction stocks like HSL will clearly be an early beneficiary from the infrastructure projects.
Other key considerations are the FDI that will be attracted especially in the energy-based industries, as well as the Sarawak state election itself.
As it stands, the Sarawak-based companies like HSL, Naim, CMS and Weida have already outperformed the FBM KLCI for the YTD, and in our view will continue to be supported by positive news flow. Among the Sarawak stocks that we cover, we believe HSL will likely be a prime beneficiary of more construction contracts. The timber players are less tied into domestic projects but nevertheless could potentially be involved in other downstream activities. We believe the plantation companies may also be beneficiaries if the state government opens up more land for oil palm plantations.
RHB Equity 360° (Market, Steel, Cement, Insurance; Technical: Mulpha, UEM Land) - 29/03/2010