Malaysia Airports Holdings - Exciting prospects in 2013

By Maybank IB Research
29th Jan 2013


Buy (unchanged)
Share price: MYR5.50
Target price: MYR6.60 (from MYR6.90)


Maintain Buy with  a  lower target price.  We look forward to a promising 2013 with robust traffic growth thanks to sustained economic growth and high capacity deployment plans by the domestic airlines. We are also excited with the opening of KLIA2 (officially 28 June) as it opens platforms for many new revenue streams. Maintain BUY, with a lower  DCF-based  target price ofMYR6.60/share (from MYR6.90) after adjusting for higher number of shares and other cost items.

New method of investment in the stock market

By Star Online: Business
26th Jan 2013

MALAYSIA'S warrants specialist Alan Voon has come up with his first book, Trading The China Market with American Depository Receipts. A coup indeed, as the book is also published under the Wiley Trading Series which typically features only authors who are heavyweight hedge fund managers.

While Voon's expertise lies in warrants, he is now writing on a new instrument American Depository Receipts (ADRs), an instrument which he says will enable us to make some “free lunch” money in the stock market which is not entirely efficient.

Hai-O shares seen cheap

By Star Online: Business
25th Jan 2013

Hai-O Enterprise Bhd

By HwangDBS Research

Trading Buy

Fair value: RM2.95

THE stock has undemanding valuations with a price earnings (PE) multiple the cheapest among peers.

Hai-O is currently trading at 10.5 times 1-year forward PE, which is cheaper than Zhulian and Amway, which are both trading at 11 times and 17.5 times FY13F PE respectively.

Plantation stocks have been battered-down, is it a good time to buy now?

By Star Online: Business
25th Jan 2013

PETALING JAYA: Having been battered down since last September, is it a good time for investors to buy into plantation stocks?

Over the last 12 months, the plantation index of Bursa Malaysia has underperformed the benchmark FTSE Bursa Malaysia KL Composite Index (FBM KLCI) significantly. To-date, the plantation index is some 15% below the FBM KLCI.

This is not surprising, considering that the third-month contract of crude palm oil (CPO) prices have been taking a beating since September, dipping 19.26% to around RM2,481 per tonne on Jan 23.

The CPO price decline is basically due to higher inventories and weaker demand.

A glut of new capacity in will force Asian airlines to ply some less profitable routes

From Star Online: Business
23rd Jan 2013

SINGAPORE: Low-cost South-East Asian airlines risk jeopardising their margins by buying too many planes too quickly, an influential aviation banker said.

Across the region, discount carriers have placed orders over the past two years for at least US$50bil worth of aircraft, taking new Boeing and Airbus jets to serve dozens of fresh routes and replace their fleets. They are betting the region's expanding middle class will demand more and more frequent air travel for years to come.

Many of those carriers were making the wrong decisions by trying to grow market share without anticipating pressure on profit margins, DVB Bank SE's Bertrand Grabowski, who heads the German bank's aviation and land transport finance divisions, told Reuters in an interview.

Negri housing market looks promising

By Star Online: Business
19th Jan 2013

THE property market in Negri Sembilan looks promising this year and is expected to continue growing with no slowdown expected in take-up rates for residential property.

Real Estate and Housing Developers' Association Malaysia Negri Sembilan (Rehda NS) chairman S. Sivanyanam says demand for single- and double-storey landed properties is the strongest with terraces being the most-popular choice.

He says a good indicator of the continued demand for such properties is the sales reports from participating developers at the 2012 Mapex NS property expo held in October.

“These properties sold like hotcakes and were the most popular during the expo,” he says.

UBS positive on property stocks this year

By Star Online: Business

18th Jan 2013

PETALING JAYA: Residential property stocks which underperformed in 2012 will do better this year and among them the best is Mah Sing Bhd, a report by UBS Investment Research said.

It said the Mah Sing was ‘entrepreneurially managed with ambitious plans to grow within Malaysia”.

UBS stated that while 2013 should remain challenging, the company will deliver circa 20% sales and earnings growth based on its diversified range of products.

“Our new price target for Mah Sing’s stock is RM2.80 based on a 30% discount in realisable net asset value (RNAV) of RM3.99 and the company has a dividend policy of paying a minimum 40% of net profit resulting in a forecast yield of 6.2% for 2013,” it said.

Boon for the ringgit

By Star Online: Business

14th Jan 2013

An economist says US dollar likely to continue weakening

THERE are several reasons why currencies appreciate. In Malaysia, the recent appreciation of the ringgit has been attributed to the inflows of foreign funds into the stock market, which has soared to an all-time high as tail-risks receded and growth outlook brightened.

10 Things Traders Need to Know about Moving Averages.

By New Trader
12th Jan 2013

Do you use moving averages in your trading? If not you are missing out on a very simple tool for finding support and resistance levels along with possible trend identification. It is very interesting to lay a 50 day and 200 day simple moving averages on to a chart for the past year. You will begin to see patterns develop. Bounce off the 50 day, a last chance for support at the 200 day etc. Each stock and ETF has different key moving averages and different reactions to them on the chart. It can really help your trading to know the key moving averages for what you are trading and clues to support and resistance, they give clues as to where the buyers and sellers are waiting.

Ten things traders need to know about moving averages.

Golden opportunity for Genting in US

By Star Online: Business
11th Jan 2013

PETALING JAYA: Genting Malaysia Bhd may enjoy spillover benefits from New York governor Andrew Cuomo's plan to expand the state's gambling to private casinos.

Given Genting Malaysia's strong financial strength and good track record as the operator of the Aqueduct racino in Queens, New York, it is well-positioned to benefit from the potential gaming liberalisation in the state of New York.

According to Alliance Research analyst Cheah King Yoong, the New York state regulators' willingness to liberalise the gaming sector will offer Genting Malaysia a golden opportunity to expand its gaming operations in the United States.