Posted on Jan 27, 2014
Overweight
• Investors should stick to MRT-related proxies like Gamuda and MMC; the government is committed to ensure rollout of the entire project. Line 1 (Sg. Buloh-Kajang) has reached 30% completion and is on track for full handover by 2017.
• 2014 will be the year for IJM to play catch up to Gamuda, as we approach the award of WCE which will transform four of its business divisions and double its RM2.5bn order book. Financial close for WCE is expected by 1 Jan 2014. The market continues to assign negligible value to IJM’s construction business.
• Muhibbah remains our small cap pick, as it is the cheapest proxy to the infrastructure and oil & gas related jobs. Besides the RM62bn RAPID project, we think Muhibbah is poised to clinch port related jobs in Singapore and other Petronas fabrication jobs, while its shipyard division is also on track to triple its current order book
• Investors should stick to MRT-related proxies like Gamuda and MMC; the government is committed to ensure rollout of the entire project. Line 1 (Sg. Buloh-Kajang) has reached 30% completion and is on track for full handover by 2017.
• 2014 will be the year for IJM to play catch up to Gamuda, as we approach the award of WCE which will transform four of its business divisions and double its RM2.5bn order book. Financial close for WCE is expected by 1 Jan 2014. The market continues to assign negligible value to IJM’s construction business.
• Muhibbah remains our small cap pick, as it is the cheapest proxy to the infrastructure and oil & gas related jobs. Besides the RM62bn RAPID project, we think Muhibbah is poised to clinch port related jobs in Singapore and other Petronas fabrication jobs, while its shipyard division is also on track to triple its current order book
Muhibbah Engineering Buy at RM3.10 Target Price
1) Petronas licence, the game changer. With the recently awarded licence by Petronas, the Group can now bid for future O&G-related onshore and offshore jobs, particularly on construction and fabrication works. This enables a strong inflow of contracts with better margins, and improves its chances of securing international jobs. Hence, such major exposure to the O&G sector could transform Muhibbah into a valuable O&G proxy with diversification into other businesses as well.2) Strong recurring income. The Group’s earnings are also supported by its crane manufacturing (Favelle Favco), shipyard and concession segments which could provide favourable recurring income. Having its niche in manufacturing customised cranes, Favelle Favco has been receiving consistent orders particularly from its returning customers. Meanwhile, its Cambodian airport concession has been providing increasing cashflow each year, largely supported by the strong tourism
growth in the country.
3) Cheapest O&G related stock. Valuation is attractive at FY14-15 PE of 6-7x, backed by strong ROE of 21-22% and estimated double-digit forward annual EPS growth. We like this stock for its significant exposure to O&G, while gaining
earnings diversification from other segments. BUY at RM3.10 TP
Gamuda Buy At RM5.40 Target Price
1) Still the best MRT proxy.
Gamuda remains the most leveraged proxy to the MRT project. The next
positive catalyst is cabinet approval and PDP appointment for Line 2.
The revival of the southern double-tracking project will help fill the
potential earnings gap for construction in FY16. Both FY14 and FY15 will
be peak years for MRT Line 1 for Gamuda, while Line 2 will only
contribute in FY17.
2) Replenishing its land bank. The post-budget announcement of property cooling measures has not been materially affected Gamuda’s property sales. 1QFY14 property sales were RM575m (+72%) and are on track to beat its RM1.9bn sales target for FY14. There is concern of a potential slowdown at Iskandar due to over-building and higher minimum purchase limit of RM1m per property for foreigners. But the impact should be mild on Horizon Hills which appears to attract more genuine buyers, and the minimum price of the properties there is RM800k. IJM is also finalising three key land deals in Sabah, Iskandar and Klang Valley, with RM8bn in combined GDV.
3) BUY, TP RM5.40.Valuations are still tracking mean levels and should rerate once there is more newsflow on MRT Line 2 and southern double tracking. We still expect substantial special dividends from the sale of Splash but investors may have to wait longer.
2) Replenishing its land bank. The post-budget announcement of property cooling measures has not been materially affected Gamuda’s property sales. 1QFY14 property sales were RM575m (+72%) and are on track to beat its RM1.9bn sales target for FY14. There is concern of a potential slowdown at Iskandar due to over-building and higher minimum purchase limit of RM1m per property for foreigners. But the impact should be mild on Horizon Hills which appears to attract more genuine buyers, and the minimum price of the properties there is RM800k. IJM is also finalising three key land deals in Sabah, Iskandar and Klang Valley, with RM8bn in combined GDV.
3) BUY, TP RM5.40.Valuations are still tracking mean levels and should rerate once there is more newsflow on MRT Line 2 and southern double tracking. We still expect substantial special dividends from the sale of Splash but investors may have to wait longer.
Palm Vitamin E tocotrienols benefits hemodialysis patients
A newly published human clinical study gives
new hope for better heart health to people undergoing frequent or
ongoing hemodialysis. The study,
conducted by researchers at Wayne State University and published in
Vascular Health and Risk Management, showed that a unique combination
vitamin E tocotrienol-rich fraction helped to improve patients' lipid
profiles in as little as three to four months.
People undergoing frequent/ongoing (chronic) hemodialysis are at higher
risk for atherosclerosis because of inflammation, high cholesterol
levels and an impaired antioxidant system. Until now, it was unknown how
Vitamin E tocotrienols might impact these patients.
The randomized, double-blind, placebo-controlled, parallel trial was
conducted on 81 patients undergoing ongoing chronic hemodialysis.
Subjects were either given a daily vitamin E capsule containing 180 mg tocotrienols
and 40 mg tocopherols, or a placebo. Researchers monitored several
markers including C-reactive protein (inflammatory), triglycerides and
HDL cholesterol levels.
After 12 and 16 weeks of
intervention, those patients taking the Vitamin E supplementation showed
greater improvement in their lipid profiles compared to the placebo
group. Specifically, their triglycerides were reduced by 33 mg/dL and 35
mg/dL respectively, while no significant improvement was seen in the
placebo group. The Vitamin E group also had higher HDL levels than the
placebo group. There were no significant differences in any nutritional,
inflammatory or oxidative biomarkers during this study.
"This study highlights some important findings, especially in the lipid-altering properties of tocotrienols,
which could potentially have clinical implications," commented lead
researcher Pramod Khosla, associate professor, Department of Nutrition
and Food Science, Wayne State University. "However as several of the
patients were taking different medications it is not known if the TRF
acted independently. A multi-centered trial is warranted to confirm
these observations.
Reference:Z.A.M, Daud, B. Tubie, M. Sheyman, R. Osia, J. Adams, S. Tubie & P. Khosla.
Vitamin E tocotrienol supplementation improves lipid profiles in chronic hemodialysis patients.
Vascular Health and Risk management 2013, 9: 747-761.
没有评论:
发表评论