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MALAYSIA SHARE
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ed88ks
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09-May-2007 16:31
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http://biz.thestar.com.my/bizweek/#Broker's%20Choice |
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ed88ks
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09-May-2007 15:56
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BURSA MALAYSIA BHD BURSA Malaysia reported a solid net profit of RM70.2mil in 1QFY07 (up 210% yoy) and exceeded consensus estimates. The positive result was backed by the strong equity market, which has seen splendid growth in both traded volume and value. Velocity rate hit a record high of 68% (vs. 39% in 4QFY06) and average daily turnover (ADT) reached RM2.8bil, or 180% higher than ADT in FY06. Net profit margins expanded to 52% from 34% in 4QFY06, given ADT ticked up, a similar phenomenon in all major exchanges (driven by volumes and values), and well-contained cost structure or high operating leverages. Revenue was 3.2x higher than expenses in 1QFY07 vs only 1.8x in 4QFY06. Surprisingly, the equity market's velocity reached 68% in 1Q, making it possible for Bursa's earnings to beat consensus estimates for three consecutive quarters. Market performance was commendable given that the total market cap of public listed companies increased by 34% yoy and 16% qoq to RM985bil. The strong market performance was sustained by 32% foreign participation in terms of trading volume. Comment by TA Securities: We believe our earlier velocity forecast of 36%-38% for FY07-FY09 is too conservative for the current bullish market sentiments. We have raised our FY07 velocity projection to more sustainable velocity rate of 50% -60% for FY07-09, where we assume a stronger and sustainable revenue growth. We believe our new assumptions are reasonable given the potential boost in trading value and positive news flow during the year as we are in the countdown period for the next election. Management remained fairly upbeat, expecting velocity rate to benefit from the recent bullish sentiment over the region, gradual liberalisation of capital controls, relaxation of the stringent foreign ownership in the property market and the strengthening of the ringgit. Management guided for 40% velocity rate in FY07 and at 60% in FY2010. As at 1QFY07, the group has net cash of RM441mil (RM0.86/share) and our full year estimate is RM500mil (RM1/share). Assuming a 90% payout ratio or payout of RM196mil (RM0.38/share), it would translate into a yield of 3.3%. We do not discount the possibility of a special payout due to strong cash flow. Recommendation: We raise our target price from RM7.90 to RM10.55 based on 5x FY07 book value of RM2.11 to reflect on strong trading momentum in the equity market as it is a proxy to KLCI. |
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ed88ks
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09-May-2007 15:53
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Transmile down on audit concerns PETALING JAYA: Transmile Group Bhd shares yesterday suffered from heavy selling as investors reacted to the company?s concern over the reliability of its unaudited consolidated results announced on Feb 15. The stock, which was well liked by investors for its solid track record and strong shareholders, plunged to an intra-day low of RM9.10 in the first half hour of resuming trading yesterday. The counter closed at RM10, down RM3 or 23%. The strong selling wave came after the Transmile board said it commissioned a special audit on the unaudited consolidated results for financial year ended Dec 31, 2006. In a filing with Bursa Malaysia on Tuesday, Transmile directors said they had been informed by the company?s auditor Deloitte & Touche (D&T) that it had ?not been able to obtain relevant supporting documentation from the management on certain transactions relating to trade receivables and related sales and additions to property, plant and equipment so as to enable them to satisfy themselves on the fairness or validity of those transactions? on which the unaudited consolidated results were based. It is learnt a committee had been set up to conduct the special audit, which is expected to take a while. The audited result by D&T will also be out soon. ?The sell-down is a knee-jerk reaction. Investors probably just want to sell first and ask questions later,? said MIMB Investment Bank head of equity research Pong Teng Siew. While the situation did not look good for Transmile, a ?bright spot? was the company?s willingness to disclose its concern, he added. Major shareholder Pos Malaysia & Service Holdings Bhd (PSH) on Tuesday told Bursa it had ceased to take into account Transmile?s earnings contribution since December 2006 and it had a single seat representative on the board. Analysts commented that PSH?s statement further fuelled investors?worries over the situation. The unaudited results show that Transmile?s revenue surged 80% to RM989.2mil in 2006 from RM550mil in 2005. Net profit more than doubled to RM157.5mil against RM74.8mil in 2005. Its trade receivables, however, ballooned to RM381mil from RM111mil. Several stockbroking houses, including Aseambankers and JP Morgan, downgraded the stock to ?fully valued? or ?sell? from a ?buy? recommendation. Nonetheless, some investors chose not to sell their shares. ?We are still holding on to our shares in Transmile. We don?t think that?s the end of the group?s business,? said Phillip Capital Management Sdn Bhd chief investment officer Ang Kok Heng. He said if it was a ?one-off? incident, the group could ?readjust the accounts and make provision for it. Business will go on as usual.? CIMB Research analyst Raymond Yap believed the long-term fundamentals of Transmile remained intact. He said the stock would be attractive at below RM10. The Kuok group and PSH hold 17.25% and 15.33% in Transmile respectively. |
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ed88ks
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09-May-2007 15:48
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anyone got any idea on TRANSMILE? |
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ed88ks
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09-May-2007 15:47
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performance of malaysia share are just moving ... recomendation pls from any wise malaysia share expert? |
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