BAT: ANALYSTS said longstanding concerns over BAT's earnings visibility have dampened the prospects for this stock which has been well-sought after for its quality earnings and good dividend payout. A Singapore brokerage in its recent notes said BAT's declining net profits in its first quarter FY05 confirmed that there could be a potential dip in dividends this year, given BAT's negative earnings prospects. The company had a 91% dividend payout ratio last year. The outlook for BAT may be even more challenging in the coming quarters as analysts expects full year demand to drop by as much as 10%. BAT : [Stock Watch] [News]
MAYBAN Securities, in its recommendation on CIMB, said the group's first half-year FY05 outlook remained strong. It has several deals in the pipeline and expects increased trading volume in the secondary bond market. In addition, the acquisition of Singapore-based GK Goh's stockbroking business is expected to be completed as early as June, allowing the investment bank to gain a strong foothold in the region. However, CIMB's second half-year outlook is clouded by the uncertainty surrounding the interest rate environment, economic growth and inherent volatility in the capital market. CIMB : [Stock Watch] [News]
Hiap Teck: HIAP Teck's order book and earnings would be enhanced as the group is said to be one of the major beneficiaries of the long-awaited RM3.8bil Pahang-Selangor interstate water transfer project. Analysts said the company is also applying for the American Petroleum Institute (API) standards to prepare for the production of oil and gas pipes, which will yield higher margins. This augurs well for Hiap Teck's plan to diversify and capture a larger client base. HIAPTEK : [Stock Watch] [News]
KL Kepong: ITS comfortable cashpile of RM636.3mil could provide the edge for KLK to seize any opportunity to generate future growth. SBB Securities has rated a “long-term buy” on KLK in its second quarter 2005 outlook report. It said KLK's net profit growth is likely to stabilise at a 10% range. Improvement in earnings is likely to be driven by prospects of favourable crude palm oil prices over the next eight months. The plantation division will continue to be the star performer, contributing about 14% growth year-on-year. KLK : [Stock Watch] [News]
IJM Corp: ANALYSTS are positive over IJM's latest joint venture with Mega First Corp Bhd to develop an RM250mil mixed property project called PJ eight in Petaling Jaya new town. Mayban Securities, in its notes, said: “This type of venture, which is essentially a fast track project, could contribute to earnings almost immediately.” It said margins from this development would be “healthy” as the strategic location would allow higher pricing to the JV. Assuming a 50:50 JV, the research unit expects IJM to register net profit between RM20mil and RM25mil over the next three years.
IJM : [Stock Watch] [News]
BAT : [Stock Watch] [News]
