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Upgrade to outperform call with an increased target price (TP) of RM2.24. Last week, the Federal Government issued provisional safeguard measures for steel coils and reinforced bars at a duty rate of 13.9% and 13.4% imposed respectively towards exporting countries into Malaysian shores. Positive on the measure as it would boost ANNJOO’s steel re-bars ASPs. Upgrade FY17E earnings by 20% on the back of 8% higher ASP assumption. Post earnings adjustment, upgrade ANNJOO to OUTPERFORM (from MP) with higher TP to RM2.24 (from RM1.69) after switching valuation methodology from 0.76x FY17 PBV to 7.0x FY17 PER. Ann Joo Resources Bhd Approval of provisional safeguard measures. Last week, the Federal Government issued provisional safeguard measures in relation to steel coils and reinforced bars after 4 months of investigations. The measure entails safeguard duties of 13.9% for steel coils and 13.4% for steel rebars which will be imposed towards a list of 40 exporting countries begin...

Maintain Market Perform with marginally increased target price (TP) of RM8.80 1H16 NP came in within expectations .  As expected, an interim DPS of 17.0 sen was declared. Fluctuation in Ringgit, China’s economic slowdown, BREXIT as well as the expectations of a gradual rise in US interest rate will continue to cast a long shadow over market sentiment; hence, suppressing trading sentiment. Our FY16E/FY17E NPs have been tweaked by +2% following house-keeping purposes. Maintain MP with TP marginally increased to RM8.80 (from RM8.56). Within expectations . BURSA reported 2Q16 net profit (NP) of RM49.5m (-1% QoQ; 0% YoY), bringing 1H16 NP to RM99.4m (+3%) which made up 53% and 48% of our and the consensus’ full-year estimates, respectively. As expected, an interim DPS of 17.0 sen (representing 92% of dividend payout ratio) was declared under the quarter reviewed. YoY, 1H16 operating revenue increased by 3% with better performance in stable revenue (+6%) superseding the m...

Maintained Market Perform with unchanged Target Price (TP) of RM2.41 Star Publication (M) Bhd We attended Star Publication (M) Bhd (STAR)’s post-4Q15 results briefing last Friday. The key highlights of the briefing focused on: (i) dividend, (ii) adex outlook, (iii) forward business strategies, and (iv) an update on its existing businesses. The group intends to keep its annual DPS target at 18.0 sen in FY16 should its core PBT stay at the RM170m-RM190m range. Meanwhile, STAR remains hopeful on its event division and believes the recently completed exhibition rights (Victory Hills Exhibitions Ptd Ltd) could provide buffer to its earnings. Post-briefing, there are no changes to our FY16FY17 estimates. Our STAR’s target price remains unchanged at RM2.41, based on a targeted FY16E PER of 13.5x (-1.0x SD below its mean). Maintained MARKET PERFORM for its decent dividend yield.    Dividend aspiration. STAR is aiming to maintain its FY16E DPS at 18.0 sen if the core PBT is...

Maintain Buy call with unchanged Target Price (TP) of RM4.30 Inari Amertron Bhd Positive reinforcement to Inari’s new plant, P-21 We are positively surprised by the MYR100m matching grant awarded by MIDA; a testament to Inari’s capabilities. Look beyond temporary earnings weakness in 3QFY16 as Inari continues to offer long-term growth prospects. Our forecasts and MYR4.30 TP (17x CY17 EPS) are unchanged for now; reiterate Inari as the Top Pick of the sector for its improved earnings visibility and strong growth prospects. The biggest grant awarded by far Following the acquisition of the P-21 plant for the setting up of Inari Integrated Systems (IIS), a wholly-owned subsidiary of Inari, the Malaysian Investment Development Authority (MIDA) has granted MYR100m matching grant to Inari to upgrade its P-21 plant and for the purchase of equipment and machineries. This is to power Inari’s next growth engine in the areas of advanced communication chips and die preparation. ...

Maintain Buy call with  lower Target Price (TP) of RM0.90 (+29%) Eversendai Corp Strong job win momentum to continue Following strong job wins in 2015, the momentum would continue in 2016 especially from Middle East and Malaysia. Variation order claim is expected to pick up in 2016, providing upside to our earnings forecasts. The pick up in job flows from key global events in the Middle East would re-rate the stock. Post earnings forecasts adjustments, we maintain BUY on Eversendai with a lower MYR0.90 TP (-10%) based on 12x 2017 PER. Potential job wins from ME and Malaysia Eversendai’s 2015 record high job wins of MYR1.73b was mainly from Middle East (64% of total) and 65% consisted of structural steel works. In 2016, Eversendai would continue tendering actively in Middle East and Malaysia but would tender selectively in India. The major events including World Expo 2020 in Dubai and World Cup 2022 in Qatar would continue to drive construction jobs in the M...