Friday 27 February 2009.

DAILY MARKET REPORT.

Thursday Markets Closing Prices.


KLCI 893.42 down 3.09.
DJIA 7,182.08 down 88.81 or 1.22%.
Crude Oil US$45.22.
May FCPO RM1,890.
Ringgit 3.6680.


LOCAL NEWS.

PM Abdullah Badawi asked cabinet to reconsider the surprise decision to increase toll rates for 5 concessionaires namely PLUS, AKLEH, NPE, Sprint and Besraya.

Analysis - The rakyat were expecting toll free roads from the mini budget during this trying time, instead they were getting "unnatural economic stimulation".

SPAN offer RM5 billion for Selangor water assets.


WORLD NEWS.

Obama budget plan forecasts soaring deficits of US$1.75 trillion.

U.S. jobless claim notched a fresh record in the second week of February 2009.

Japan unemployment rate at 4.1%.


CORPORATE RESULTS.

Boustead Holdings Bhd, RM3.08, U4Q FY 31.12.2008.

4Q08 revenue RM1.227b down from RM2.188b year on year.
Net Profit RM105.5m down from RM266.7m on lower CPO price.
Net EPS at 16.99 sen.
Proposed Dividend of 12.50 sen.

FY2008 revenue RM7.03b up from RM5.75b year on year.
Net profit RM667.6m up from RM654.5m
Net EPS 90.69 sen up from 79.04 sen.
Dividend 30.00 sen.

Stock Recommendation - BUY on prospective FY09 gross dividend of 25 sen for 8.11% yield. FY 2008 gross dividend yield at 9.74%. 4Q08 gross dividend yield of 4.05% on 12.5 sen dividend.


Sime Darby Bhd, RM5.75, U2Q FY 30.6.2009.

2Q09 net profit down 65.2% to RM286.2m from RM843.8m on a turnover of RM7.3 billion as the plantation division profit down by 86% on lower average CPO price of RM1,656 per ton from RM2,962 in the preceeding quarter.
Net EPS at 4.63 sen.
Proposed dividend 5.00 sen.
Net assets per share RM3.33.

1H 2009 net profit down 18.3% to RM1.165 billion from RM1.544b quarter on quarter on a revenue of RM16.0 billion.
Net EPS 19.06 sen.
DPS 5.0 sen.

Stock Recommendation - SELL and TAKE PROFIT on deterioration in global economic outlook.


MAS Bhd, RM2.70, U4Q FY 31.12.2008.

4Q 2008 MAS net profit down 81% on slowing air travel to RM46.6m from RM242.2m on a revenue of RM3.866 billion year on year.
Net EPS 2.76 sen.
Net assets per share RM2.50.
No dividend.

FY2008 revenue at RM15.5b up from RM15.2b year on year.
Net profit at RM245.7m down from RM852.7m.
Net EPS at 14.62 down from 58.05 sen.
No dividend.

Stock Recommendation - SELL and TAKE PROFIT on dwindling world air travel demand. MAS also consider FY2009 net profit of RM50m to a loss of RM400m as meeting their target for the year based on their KPI for 2009.


TMI Bhd, Audited 4Q FY 31.12.2008.

4Q08 revenue RM2.41b down from RM2.754b year on year.
Net loss at RM613.5m on weak rupiah against ringgit, from net profit of RM554.3m.
Net loss per share 14 sen down from net EPS of 15.00 sen.
Net assets per share RM2.99.
No dividend.

FY 2008 revenue at RM11.347b from RM9.996b year on year.
Net profit lower at RM471m from RM1.847b.
Net EPS lower at 13.00 sen from 50.00 sen.
No dividend.

TMI also proposed a name change to AXIATA Group Bhd and to raise RM5.25b through rights issue.

Stock Recommendation - SELL.


UEM Land Bhd, RM0.755, Audited FY31.12.2008.

4Q08 revenue at RM181.98m down from 222.67m year on year.
Net profit at RM9.5m down from RM23.9 on lower contribution from Johor State New Administrative Centre as the project is almost completed.
Net EPS 0.40 sen
Net assets per share RM0.52.
No dividend.

FY2008 revenue lower at RM511.6m from RM1.87b year on year.
Net profit lower at RM75.069m from RM529.7m as no land sale to Khazanah as in 2007.
Net EPS at 3.10 sen down from 24.7 sen.
No dividend.

Stock Recommendation - BUY ON WEAKNESS especially at NAV of 52 sen as the ISKANDAR that has managed to attract close to RM50 billion in investment will spur the development of UEM Land own projects in Nusajaya.


By:-
Kamel Bin Mohd Yusoh.
Kenanga Investment Bank Bhd.
013-6306544.
27 Feb. 2009.