EON Capital: THE failed merger talks with AMMB have not dented EON Capital's ambition to remain as an anchor bank in the next round of banking consolidation. Kim Eng Research suspects that the group is still looking at various alternatives, including the possibility of taking over other smaller anchor banking groups. Ranked eighth in terms of assets, a merger with any two smaller anchor banks will raise EON Capital's asset size to over RM50bil. The research unit maintains a buy on EON Capital with a targeted price of RM4.45 per share. Jusco: THIS retail giant remains vigilant amidst growing competition. OSK Research said Jusco's price reduction strategy would fend off hypermarkets while a more robust consumers' spending pattern could benefit Jusco's performance this year. The research unit maintains a buy on Jusco with targeted price of RM9.30 per share. As at the end of the first-quarter period, Jusco's net cash position stood at RM70.5mil while its net tangible asset per share strengthened to RM5.34 from RM5.20. DiGi.com: ANALYSTS said DiGi.com's share price has fallen as much as 6% since June 17 compared to a 4% rise on the benchmark KLCI. This was mainly due to the strong performance in the initial stage of th KLSE market run-up where share prices skyrocketed from a low of RM2.50 to a high of RM4.30. Despite competitive business environment, OSK Research said DiGi.com had maintained its relevance in the market place and had not been marginalised by the “big boys”. It was able to garner a fair market share but at the expense of higher market and promotional cost. Unisem: BETTER outlook is in the offing for Unisem. Analysts seem encouraged by the group's performance in the small lead frame packages and focus on R&D, which is crucial to the survival of a technology-based company. Unisem appears to have a clearer strategy under the leadership of its president C.H. Ang, an industry veteran, who came on board in April 2001. Despite the promising outlook, UT Securities said the third-quarter results could be dampened by the excess cellular phones inventory in Asia. OYL: GOING forward, Asian market will offer the strongest growth potential for OYL. China holds the key to future earnings bringing in sales from heating, ventilation and air conditioning worth RM4bil within the next four years. Kim Eng Research said OYL was expected to post stronger performance in the fourth quarter this year due to seasonal demand. The research unit recommends a buy on OYL, which it describes as a growth stock with attractive valuation on its price earnings ratio and dividend yield. For latest KLSE indices and other information click here
Jusco: THIS retail giant remains vigilant amidst growing competition. OSK Research said Jusco's price reduction strategy would fend off hypermarkets while a more robust consumers' spending pattern could benefit Jusco's performance this year. The research unit maintains a buy on Jusco with targeted price of RM9.30 per share. As at the end of the first-quarter period, Jusco's net cash position stood at RM70.5mil while its net tangible asset per share strengthened to RM5.34 from RM5.20. DiGi.com: ANALYSTS said DiGi.com's share price has fallen as much as 6% since June 17 compared to a 4% rise on the benchmark KLCI. This was mainly due to the strong performance in the initial stage of th KLSE market run-up where share prices skyrocketed from a low of RM2.50 to a high of RM4.30. Despite competitive business environment, OSK Research said DiGi.com had maintained its relevance in the market place and had not been marginalised by the “big boys”. It was able to garner a fair market share but at the expense of higher market and promotional cost. Unisem: BETTER outlook is in the offing for Unisem. Analysts seem encouraged by the group's performance in the small lead frame packages and focus on R&D, which is crucial to the survival of a technology-based company. Unisem appears to have a clearer strategy under the leadership of its president C.H. Ang, an industry veteran, who came on board in April 2001. Despite the promising outlook, UT Securities said the third-quarter results could be dampened by the excess cellular phones inventory in Asia. OYL: GOING forward, Asian market will offer the strongest growth potential for OYL. China holds the key to future earnings bringing in sales from heating, ventilation and air conditioning worth RM4bil within the next four years. Kim Eng Research said OYL was expected to post stronger performance in the fourth quarter this year due to seasonal demand. The research unit recommends a buy on OYL, which it describes as a growth stock with attractive valuation on its price earnings ratio and dividend yield. For latest KLSE indices and other information click here
