Maybank IB Research downgrades Aeon to Hold from Buy

KUALA LUMPUR April 18): Maybank Investment Bank Bhd Research has downgraded Aeon Co (M) Bhd to a Hold at RM9.6 with an unchanged target price of RM8.70 and said the company’s share price was up an impressive 33% year-to-date and had breached its target price (pegged at 14x 2013 PER).

“With little upside catalyst at this stage and low dividend yield as support, we downgrade our recommendation from Buy to Hold.

“We forecast revenue growth of 6.8% for the group in 2012, in line with the 6% industry growth expected by the Retail Association of Malaysia,” Maybank IB Research said in a note on Wednesday.



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CIMB Research maintains Outperform on PetDag, target price RM21.80

KUALA LUMPUR (April 18): CIMB Research has maintained its Outperform rating on Petronas Dagangan (PetDag) at RM18.78 and target price of RM21.80 and said that unlike Esso stations that ran on empty earlier this month due to a shortage of fuel, PetDag’s pumps were far from dry.

In a note Wednesday, the reach house said that the company’s network expansion was also on track and it had collected the bulk of subsidies receivable from the government.

“We continue to value the stock at 18.2x CY13 P/E, 40% premium over our target market P/E to reflect its earnings visibility and attraction as a growth and dividend stock.

“PetDag remains an Outperform and our big-cap oil & gas top pick,” it said.



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KLCI up in early trade, crosses 1,600-mark

KUALA LUMPUR (April 18): The FBM KLCI opened higher on Wednesday, lifted by key blue chips, in line with the rejuvenated regional markets, following the firmer overnight close at Wall Street.

Asian shares rallied in early trade on Wednesday, with risk appetite rejuvenated by a string of positive earnings from US companies and after Spain saw a fall in debt yields and drew strong demand at its bond auction, according to Reuters the FBM KLCI rose 4.28 points to 1,600.47 at 9am.

The broader market was positive with 112 gainers, 19 losers and 66 counters trading unchanged. Volume was . 41.14 million shares valued at RM16.93 million.

Among the early gainers were SAM Engineering, Tong Herr, Carlsberg, Hong Leong Industries, Maybank, CIMB, Parkson, Genting and MMC Corp



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MIDF Research starts coverage on CMMT with Neutral rating, target price RM1.51

KUALA LUMPUR (April 18): MIDF Research has initiated coverage on Capita Malls Malaysia Trust (CMMT) with a Neutral recommendation, setting a target price of RM1.51 based on the Gordon Growth Model (Required rate of return: 8.20%, perpetual growth rate: 3%, forward DPU: 7.9 sen).

In a note Wednesday, the research house said that in the longer term, CMMT had strong growth potential by leveraging on its sponsor’s management expertise, extensive network of tenants and potential yield-accretive asset injection.

“Even though the 5.7% distribution yield of CMMT in FY12 was much lower as compared to the sector average of 7.03%, investor will be compensated by higher free float (in absolute value) as well as more resilient earnings growth,” it said.



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Stocks to Watch Ariantec, V S Industry, Grand-Flo, United Plantations, APM

KUALA LUMPUR (April 17): External factors may continue to have an upper hand in dictating the direction of Malaysian stocks on Wednesday. For now, dynamics of the European sovereign debt market will be closely watched, on concerns that Spain's rising bond yields could threaten the stability of the region's economy.

That, together with the landscape in the US and China, could have an impact on Asian financial markets, as investors evaluate the effects of these major global importers on emerging exporting nations like Malaysia.

The FBM KLCI of 30 stocks fell 1.32 points to close at 1,596.19 on Tuesday.

Stocks to watch Wednesday include Ariantec Global Bhd, V.S INDUSTRY BHD [], GRAND-FLO SOLUTION BHD [], United PLANTATION []s Bhd, and APM AUTOMOTIVE HOLDINGS BHD [].

Bursa Malaysia has queried information TECHNOLOGY [] firm Ariantec on the unusual trading patterns of the stock. It was the most actively traded stocks in the morning session on Tuesday.

V S Industry shares go ex-dividend on Wednesday. The electronic products contract manufacturer plans to pay a second interim single-tier dividend of two sen a share for financial year ending July 31, 2012.

Grand-Flo, an enterprise data collection and collation system solutions provider, plans to reward shareholders with a final dividend of 1.2 sen a share for financial year ended Dec 31, 2011. The firm said that the dividend proposed is in line with its dividend policy, which aims to distribute to its shareholders a minimum of 20% of the group's net profits for each financial year.

United Plantations plans to reward shareholders with a special and final dividend with a combined value of 60 sen a share for financial year ended December 31, 2011. United Plantations said the special portion comprises a 50% gross payment of the stock's par value of RM1 less 25% tax. This translates into 37.5 sen a share. The final dividend of 30% less tax, translates into 22.5 sen.

APM has established a wholly-owned subsidiary, PT APM Auto Components Indonesia, to undertake production and sale of automotive heat exchange products on an industrial lot at Suryacipta Industrial City in Karawang, West Java. It said the Indonesian authorities had approved the deed of establishment of the subsidiary, and that completion of the facility was expected by the end of 2012. Operations would commence in the second quarter of 2013.



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United Plantations proposes final and special dividend

KUALA LUMPUR (April 17) : United PLANTATION []s Bhd plans to reward shareholders with a special and final dividend with a combined value of 60 sen a share for financial year ended December 31, 2011.

In a statement to the exchange on Tuesday, United Plantations said the special portion comprises a 50% gross payment of the stock’s par value of RM1 less 25% tax. This translates into 37.5 sen a share.

The final dividend of 30% less tax, translates into 22.5 sen. The ex and entitlement dates fall on May 14 and 16 respectively.



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Grand-Flo proposes final dividend of 1.2 sen a share

KUALA LUMPUR (April 17) : GRAND-FLO SOLUTION BHD [], an enterprise data collection and collation system solutions provider, plans to reward shareholders with a final dividend of 1.2 sen a share for the financial year ended December 31, 2011.

The dividend, which requires Grand-Flo’s shareholders’consent, comprises a gross taxable portion of 0.037 sen and the tax-exempt balance of 1.163 sen. The entitlement and payment dates will be decided later, the company told the bourse on Tuesday.

“The dividend proposed is in line with the dividend policy adopted by the company which aims to distribute to its shareholders a minimum of 20% of the group’s net profits for each financial year.

“Whilst the board believes in rewarding the company’s shareholders with steady returns on their investments and attracting potential long-term investors, the board is mindful that adequate working capital and reserves shall be set aside for capital investments and future potential growth, taking into consideration the global economic conditions,” Grand-Flo said.



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APM Automotive sets up Indonesian subsidiary to sell automotive parts

KUALA LUMPUR (April 17): APM AUTOMOTIVE HOLDINGS BHD [] is setting up a subsidiary in Indonesia to manufacture and sell automotive parts for the republic’s market.

In a filing Tuesday, APM Automotive said the Indonesian authorities had approved the deed of establishment of PT. APM Auto Components Indonesia (PT. APMACI).

The company said PT APMACI would carry on a project to manufacture and sell automotive heat exchange products, namely, air-conditioning cooling system, evaporators, condensers, cooling modules and radiators for the Indonesian market.

The manufacturing facility will be located on an industrial lot of land area measuring approximately 38,077 sq meters at Suryacipta Industrial City in Karawang, West Java, it said.

APM Automotive said completion of the facility was expected end 2012 with operations to commence in the second quarter of 2013.

“Under the Investment Registration of PT. APMACI, the company is also permitted to carry out the business of property rental.

“The total capital and investment outlay for the project will be approximately US$10.9 million, financed by internal funds,” it said.

APM Automotive said PT APMACI’s total issued and paid-up share capital would be US$10 million and would be subscribed for by two of its 100% owned investment holding companies , namely APM Automotive International Ltd, which would hold 6.4 million shares (80%) and Auto Parts Holdings Sdn Bhd, wwith 1.6 million shares (20%).



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