KLCCP: 1H10 results within expectations

by Guest Tue 17 Nov 2009, 17:14

1H10 results for KLCCP were largely in-line with HLG and street estimates. PBT rose 5% yoy as office and retail properties enjoyed positive rental revisions, but this was partially offset by weaker results for hotel operations. We had anticipated this due to Mandarin Oriental’s weak occupancy rates (below 60%). We maintain our earnings forecasts as Lot C and Lot D1 catalysts remain long-dated in nature and keep our HOLD call on KLCCP.

We are positive on the Malaysian property sector: Occupancy rates for commercial/retail spaces in KL remain strong, and limited incoming supply of office spaces in KL gives owners scope to revise rental rates.

Newsbreak

CIMB to seek listing on Thailand

The bank will seek a dual listing on SET to sell a combination of new and vendor shares from a major shareholder; it is expected to raise RM452m (35m shares) and forecasted to be done by 1H10 pending approvals by regulators.

Axiata-owned Excelmindo rights plan approved

The 3^rd largest Indonesian telco (84% owned by Axiata) received shareholders’ approval for a US$304m rights issue; proceeds will be used for debt repayment.

Takaful stake sale aborted

BIMB’s talks with ADKM Investment regarding a stake in the insurance company fell apart after ADKM cited unfavorable economic conditions and circumstances as reason abort the proposal.

LionCorp 1Q10 devastated by lower prices and volume

Revenues fell 45% yoy to RM795m and the group suffered a loss of RM218m for the quarter; management expects an improvement next quarter due to recovery in international steel products’ prices.

Economics

US: October retail sales rebounded by a stronger than expected 1.4% MOM on auto sales but the 2-month net effect was offset by a bigger revised fall of 2.3% in September.

US: Empire state manufacturing index slipped to 23.5 in November from a 5-year high of 34.6 a month ago but nevertheless showed expansion for a 4th straight month.

US: Business inventories fell lesser than expected by 0.4% in September to the lowest in almost 4 years, paving the ground for restocking in the months ahead.

EU: CPI fell for a 5th month by 0.1% YOY in October as rising unemployment deterred demand push price pressure. MOM, prices was up 0.2%.