♦ Vietnam Focus
Market Update : On A Recovery Path
♦ JAKS Resources
Company Update : Powering Up
♦ Semiconductor
Sector Update : Intel 1Q Earning Boosted By Stronger-Than-Expected PC Sales
♦ Market Technical Reading
Daily Trading Strategy : Crucial To Reclaim The 10-day SMA To Sustain The Upward Momentum...
Corporate Highlights...-14/04/2010
Showing posts with label Jaks Resources. Show all posts
Showing posts with label Jaks Resources. Show all posts
Wednesday, April 14, 2010
JAKS Resources Berhad : Powering Up - 14/04/2010
JAKS = water + more. We note that JAKS has primarily been identified with the water sector, including construction of water infrastructure projects and the manufacture of steel pipes and steel hollow sections. Although the water business is still important, we believe JAKS has been very busy over the last year spreading its wings to property and power.
JAKS Resources Berhad : Powering Up-14/04/2010
JAKS Resources Berhad : Powering Up-14/04/2010
RHB Equity 360° (Vietnam, Semicon, JAKS; Technical: Pos) - 14/04/2010
Top Story : Vietnam Focus – On a recovery path
Market Update
♦ Since our report on Vietnam in Jun 2008 and the significant market correction, latest technical indicators suggest that conditions have bottomed and are on a recovery path.
♦ The recovery in the Vietnam stock market mirrors the brighter outlook for the country’s economy. As it stands, we highlight Vietnam’s GDP growth of 6.4% for 2010, 88.6m population, and the government’s efforts to attract foreign investments.
♦ We see significant opportunities in the power sector, given the inadequate power supply infrastructure and the country’s plans to shift its reliance on hydropower to coal. We highlight that JAKS Resources last week signed agreements for a 1,200MW coal-fired IPP to come onstream in 2014-2015.
♦ The property plays of 2007 such as Gamuda, SP Setia and Berjaya Land are still there, and interestingly,other companies like MRCB are now also scouting for property projects in Vietnam.
♦ Since 2008, we note that manufacturers like Box-Pak have expanded their operations in Vietnam while furniture manufacturers such as Poh Huat and Latitude Tree are generating almost all their profits from their Vietnam operations. Global economic recovery and favourable operating conditions will likely continue to maintain this growth trend.
♦ Overall, while the recovery is still at an early stage, we believe the outlook for Malaysian companies in Vietnam is positive. In particular, we highlight Box-Pak (FV = RM2.35), JAKS (FV = RM2.00), and Parkson (FV = RM6.40) where we see significant growth potential.
RHB Equity 360° (Vietnam, Semicon, JAKS; Technical: Pos)-14/04/2010
Market Update
♦ Since our report on Vietnam in Jun 2008 and the significant market correction, latest technical indicators suggest that conditions have bottomed and are on a recovery path.
♦ The recovery in the Vietnam stock market mirrors the brighter outlook for the country’s economy. As it stands, we highlight Vietnam’s GDP growth of 6.4% for 2010, 88.6m population, and the government’s efforts to attract foreign investments.
♦ We see significant opportunities in the power sector, given the inadequate power supply infrastructure and the country’s plans to shift its reliance on hydropower to coal. We highlight that JAKS Resources last week signed agreements for a 1,200MW coal-fired IPP to come onstream in 2014-2015.
♦ The property plays of 2007 such as Gamuda, SP Setia and Berjaya Land are still there, and interestingly,other companies like MRCB are now also scouting for property projects in Vietnam.
♦ Since 2008, we note that manufacturers like Box-Pak have expanded their operations in Vietnam while furniture manufacturers such as Poh Huat and Latitude Tree are generating almost all their profits from their Vietnam operations. Global economic recovery and favourable operating conditions will likely continue to maintain this growth trend.
♦ Overall, while the recovery is still at an early stage, we believe the outlook for Malaysian companies in Vietnam is positive. In particular, we highlight Box-Pak (FV = RM2.35), JAKS (FV = RM2.00), and Parkson (FV = RM6.40) where we see significant growth potential.
RHB Equity 360° (Vietnam, Semicon, JAKS; Technical: Pos)-14/04/2010
Thursday, April 8, 2010
RHB Equity 360° (Gaming, Digi, KNM; Technical: Jaks Resources) - 08/04/2010
Top Story : Gaming – New opportunities from further liberalisation of policies? Overweight
Sector Update
♦ The NFO segment has undergone several new developments of late in the form of the allocation of 20 overlapping special draws for 2010, the approval of a new jackpot 4D game for Magnum and the approval of two higher minimum jackpot lotto replacement games for BToto. There is also potential for more industry changes in the form of the potential emergence of a new jackpot game for Tanjong and the possible approval of a sports betting licence, all of which has intensified industry hopes that the government is becoming more liberal in its gaming policies.
♦ We believe a sports betting licence may not necessarily be a good thing, depending on how it is implemented. This is due to four main issues. Firstly, the issue of the traditionally high prize payout ratios involved; secondly, the issue of gaming taxes to be borne; thirdly, the issue of agent commissions to be paid; and fourthly, the issue of implementation, as sports betting is far more complicated than normal 4D or
lotto betting.
♦ On the whole, we are positive on any potential liberalisation of the NFO industry, given that this would help enlarge the NFO revenue pie by taking market share from the illegals. If these liberalisation measures are taken, the next application to the government from NFOs would probably be in the form of outlet expansion,
given that the government’s stance on this has not changed for many years already. However, we would not hold out too much hope on that happening in the near future, given the political scenario in Malaysia. Currently, we project the NFO industry segment growth at 3.1% for 2010 and 1.6-1.7% for 2011-2012 (from 2.1% in CY2009).
♦ We have tweaked our forecasts for BToto slightly, after fine-tuning some parameters, resulting in a revision of -2% for FY04/10, +0.7% for FY04/11 and +1.8% for FY04/12. Maintain Overweight on sector. No change to the recommendations of Outperform for BToto (FV = RM4.95), Genting (FV = RM8.95) and Genting Singapore (FV = S$1.35); and Market Perform for Genting Malaysia (FV = RM2.90). Note that we have raised our fair value for Genting to RM8.95 (from RM8.90) to impute the recently updated target price for Genting Plantations of RM6.65 (from RM5.85).
RHB Equity 360°(Gaming, Digi, KNM; Technical: Jaks Resources)-08/04/2010
Sector Update
♦ The NFO segment has undergone several new developments of late in the form of the allocation of 20 overlapping special draws for 2010, the approval of a new jackpot 4D game for Magnum and the approval of two higher minimum jackpot lotto replacement games for BToto. There is also potential for more industry changes in the form of the potential emergence of a new jackpot game for Tanjong and the possible approval of a sports betting licence, all of which has intensified industry hopes that the government is becoming more liberal in its gaming policies.
♦ We believe a sports betting licence may not necessarily be a good thing, depending on how it is implemented. This is due to four main issues. Firstly, the issue of the traditionally high prize payout ratios involved; secondly, the issue of gaming taxes to be borne; thirdly, the issue of agent commissions to be paid; and fourthly, the issue of implementation, as sports betting is far more complicated than normal 4D or
lotto betting.
♦ On the whole, we are positive on any potential liberalisation of the NFO industry, given that this would help enlarge the NFO revenue pie by taking market share from the illegals. If these liberalisation measures are taken, the next application to the government from NFOs would probably be in the form of outlet expansion,
given that the government’s stance on this has not changed for many years already. However, we would not hold out too much hope on that happening in the near future, given the political scenario in Malaysia. Currently, we project the NFO industry segment growth at 3.1% for 2010 and 1.6-1.7% for 2011-2012 (from 2.1% in CY2009).
♦ We have tweaked our forecasts for BToto slightly, after fine-tuning some parameters, resulting in a revision of -2% for FY04/10, +0.7% for FY04/11 and +1.8% for FY04/12. Maintain Overweight on sector. No change to the recommendations of Outperform for BToto (FV = RM4.95), Genting (FV = RM8.95) and Genting Singapore (FV = S$1.35); and Market Perform for Genting Malaysia (FV = RM2.90). Note that we have raised our fair value for Genting to RM8.95 (from RM8.90) to impute the recently updated target price for Genting Plantations of RM6.65 (from RM5.85).
RHB Equity 360°(Gaming, Digi, KNM; Technical: Jaks Resources)-08/04/2010