Yeo Hiap Seng 1Q12 Result Review

1. Net profit increased by 7% to RM8.17m. Accordingly, EPS up by  to 7% to 5.35 sen.
2. Book Value increased by 7 sen to RM1.80 per share.
3. Although Malaysia business 1Q12 PBT improved by 17% YoY to RM11.75m, Indonesia suffered loss before tax of RM1.26m (vs. RM0.18m PBT in 1Q11).
4. Loss in Indonesia is caused by higher advertising costs and forex losses.
5. YHS closed at RM2.88 yesterday or 17.6x historical PE and 1.6x Price-To-Book.

UMW upgraded to BUY with TP of RM8.35 at Maybank

Quoted from Maybank report:

1. Upgrade to Buy with a higher TP of MYR8.35, ahead of recoveries at
the automotive and O&G sectors, and on the back of a 10-11% rise in
2012-13 net profit forecasts. The disruption to the regional auto supply chain has abated while its O&G segment is at the cusp of a revival.

2. With market already absorbing the anticipated weak 1Q12 earnings
and its 2011 kitchen-sinking exercise, UMW now offers a recovery play
angle with modest growth (3-year EPS CAGR of 20%) and
undemanding valuations, supported by a decent dividend yield (6%).

3. We have raised our forecasts for Toyota vehicle
sales by 2-9% in 2012-13 to reflect an improved sales order outlook,
fuelled by its interesting launches ahead.

4. Net earnings lifted by 10-11% in 2012-13, incorporating the higher
profits from auto (+5-11%) and O&G (loss in 2011) divisions. We now
expect UMW to register a higher net profit of MYR723m in 2012 and
MYR812m in 2013.

TOWER REIT 1Q12 Result Review

1. 1Q2012 net income increased by 17% to RM9.93m. Accordingly, EPS up by 17% to 3.54 sen per share.

2. The better result was attributed to higher average occupancy rate of Menara HLA as a result of new tenancies and renewal of existing tenancies.

3. At yesterday closing price of RM1.42 and FY11 total dividend of 10.85 sen, historical dividend yield is 7.6%.

4. Conclusion: not a very sexy stock, but worth to keep for long run to enjoy the dividend yield.

Am Research Maintain BUY on TA ANN

1. We maintain BUY on Ta Ann Holdings Bhd, with a higher fair value of RM7.86/share (vs. RM7.60/share previously), based on a PE of 13x pegged to a raised FY12F EPS of 60.5
sen (vs. 58.5 sen previously).

2. We now expect Ta Ann’s oil palm division to fetch profit after tax of RM154mil (+26% YoY) and RM188mil (+22% YoY) for FY12F and FY13F, respectively.


3. We expect FFB production to grow by 24% and 16% annually to 570,000 tonnes and 663,000 tonnes for FY12F and FY13F, respectively. We expect the oil palm division to account for over 80% of earnings for FY12F and FY13F vs. about 77% in FY11.