· Taliworks Corp Bhd is taking over the New North Klang Straits Bypass Expressway from the government for RM265mn. · Petroliam Nasional Bhd’s US$27bn Pengerang Integrated Complex in Johor is on track for refinery start-up by early 2019, after several key projects were confirmed. · Westports Malaysia has added another feather to its cap as the world largest container vessel, MV CSCL Globe, made its maiden call at the terminal. · Malaysia Airports Holding Bhd is considering listing Istanbul Sabiha Gokcen International Airport Investment Development and Operation Inc that could potentially provide an annual savings by as much as €20mn in interest costs. · GW Plastics Holdings Bhd has received the Securities Commission’s nod for the revised terms of its regularisation plan to help lift it out of Practice Note 17 status. · The retail price of RON95 petrol and diesel may go below RM2 a litre from Jan 1, if global oil prices continue the downtrend said the Deputy Finance Minister Datuk Ahmad Maslan. · Proton Holdings Bhd says it is ready to collaborate in the Asean car project. · The recent sharp depreciation of ringgit will not augur well for 1Malaysia Development Bhd, which has US dollar-dominated debt of US$7.4bn. · The Bank of Japan maintained unprecedented stimulus at an annual pace of 80 trillion yen, as Governor Haruhiko Kuroda’s bid to stoke inflation faces increasing challenges from the tumble in oil prices. Sector Update Automotive Sector – Neutral MAA’s vehicle sales data for the month of Nov 2014 came in within our expectations. Total Industry Volume (TIV) grew for a second consecutive month in Nov 2014 to 55.3k units (+2.1% MoM). On a YoY basis, TIV was 5.9% higher, confirming our view that year-end promotional activities will boost demand in the last two months of the year. For the 11-months, cumulative TIV rose by a modest 1.1% YoY to 601.8k units. Passenger vehicle sales rose by 1.7% YoY to 532.8k units, while the sale of commercial vehicles declined by 3.0% YoY to 69.0k units. The data confirms that MAA’s TIV target of 680k units for this year will be missed. We estimate TIV in 2014 will about 662k – 664k units, some 2% - 3% lower than MAA’s estimate but still translate into 1% growth YoY. The national marques cumulatively posted 26.7k units of sales (+3.6% MoM, +10.6% YoY). However, the growth was entirely contributed by Perodua. Perodua continue to post strong gain in sales in Nov, thanks to overwhelmingly positive response to its newest model, Perodua Axia. Sales topped 24.1% YoY to 18.5k units in Nov. In the preceding month, sales grew by 13.8% YoY. Cumulatively, non-national passenger vehicle sales jumped by 15.3% YoY to 249.2k units. The larger growth in the non-national segment are attributable to, 1) attractive new model launches, and 2) its more resilient to the stricter financing rules imposed by the regulators. No change in Neutral call on the sector. UMW is our top stock pick in the sector with RM13.05 target price. TA Research
Posted on: Mon, 22 Dec 2014 06:35:17 +0000
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