Affin Daily Insight (LV) - 26 May 2014 - FGV / UMW / BAB / IOIPG / KOSSAN / CBEE / DMR

Top Calls

Results Note � Felda Global Ventures (ADD, downgrade) - A weak quarter, below expectations FGV�s 1QFY14 revenue and PBT were boosted by higher CPO ASP, better OER and the inclusion of results of FHB, moderated by lower FFB and CPO production as well as lower profits from the Sugar and MLO, and losses in Downstream. Adjusted for forex and other one-off items, 1QFY14 core net profit however was below our expectations. We cut our FY14, FY15 and FY16 forecasts by11.3%, 9.0% and 3.8% respectively after cutting our estimates for FFB production growth as well as profit contributions from Sugar, MLO and Downstream. CPO ASP assumptions remain unchanged at RM2,700/MT for 2014 and RM2,850/MT for 2015-16. Based on the lowered FY15 EPS forecast plus a 4.4 sen enhancement from the investment of its massive cash reserve (RM4,923m as at end-1QFY14) and an unchanged PE target of 16x, target price is cut to RM5.16. At current price, we downgrade our rating for the stock from BUY to ADD.

Other Calls

Results Note - UMW (ADD, upgrade from REDUCE) - Within expectations, intense competition ahead

Results Note � Bumi Armada (ADD, maintain) - Weak results but positive FPSO outlook remains

Results Note � IOI Properties (REDUCE, maintain) - Earnings missed expectations on weak Singapore sales

Results Note � Kossan (BUY, maintain) - 1QFY14 earnings grew 11% yoy to RM37m

Results Note � Choo Bee (ADD, maintain) - Lower earnings due to higher cost of production

Debt Market Research - Slight buying interest follow through from the well received GII11/17

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