Research

HLIB Research

PP 9484/12/2012 (031413)

Breakfast Brief

14 March 2013

IHH/ Bumi Armada/ Traders Brief

Newsbreak (report)

Markets Overview

Close KLCI DJIA FTSE-100 Shanghai CI Hang Seng STI MYR/USD CPO spot (RM/tonne) Crude oil (USD/bbl) FBM Emas Construction Consumer Finance Industrial MESDAQ Plantation Property Services 1,646.2 14,455.3 6,481.5 2,264.0 22,556.7 3,288.5 3.1 2,346.0 92.5 11,252.2 236.6 551.2 15,302.4 2,846.3 3,972.5 7,920.2 1,140.1 205.0 Daily (%) -0.6 0.0 -0.4 -1.0 -1.5 -0.4 0.0 -0.2 0.0 -0.6 -0.6 -0.6 -0.9 0.3 -0.1 -0.7 -1.2 -0.4 YTD(%) -2.5 10.3 9.9 -0.2 -0.4 3.8 1.6 5.2 0.8 -1.6 0.2 3.5 -0.4 1.8 -5.7 -4.7 8.2 -0.9

IHH (HOLD

)

Charting Growth Beyond 2015 IHH has successfully won the public tender for the acquisition of a site and construction, development and operation of a private hospital located in Hong Kong. With The University of Hong Kong as the clinical partner, the hospital will be equipped with 500 beds and provides a full range of clinical service IHH estimated that this project will require a capital investment of approximately RM2.0bn which is inclusive of land cost for the acquisition of the site amounting to RM675.4m which will be funded internally and borrowings. We are positive on this development as management continues to chart IHH’s expansion roadmap beyond 2015 and not contained within its 3 main home markets. Strengthened foothold in Hong Kong would help IHH to grow further leveraging on the large population from China (medical tourism) who are becoming more affluence on the back of sustainable economic growth. We reiterate our HOLD call on the equity on the back of unchanged SOP-derived target price of RM3.45.

Local Movers

Close Daily Volume Value (RM) (m) (RMm) Index Movers CIMB 7.11 GENTING 9.80 YTL 1.60 DIGI 4.60 IOICORP 4.75 Top Gainers DLADY 46.60 PETGAS 18.96 HDBS 4.29 SHELL 8.67 HUPSENG 3.60 Top Losers ECM 0.86 BAT 62.60 NESTLE 60.50 HLFG 15.08 RHBCAP 8.15 Top Value Traded MAYBANK 9.19 MAXIS...