ID :
140444
Thu, 09/02/2010 - 13:20
Auther :
Shortlink :
https://oananews.org//node/140444
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OSK RESEARCH: 2011 TO BE ANOTHER EXCITING YEAR FOR AUTOMOTIVE SECTOR
KUALA LUMPUR, Sept 2 (Bernama) -- OSK Research Sdn Bhd anticipates financial year 2011 to be another exciting one for the automotive sector given the slew of model launches planned over the next 18 months.
Among the models are replacements for the Myvi and Persona as well as facelifts
for the Altis and Nissan March, the research firm said in its research note
Thursday.
"Valuation-wise, we have started to roll over our earnings per share (EPS) to
reflect financial year 2011 earnings, which in turn saw many of our target
prices being increased, with buy calls mostly maintained," it added.
OSK Research said UMW Holdings was finally upgraded to a buy from neutral on the
stellar results from its auto and equipment division in addition to the more
bullish view on its oil and gas division going into next year.
"Our top pick for the automotive sector remains Tan Chong Motors, as it embarks
on structural changes, that will rev up volume and earnings over the next three
years," the research firm explained.
On the financial sector, OSK Research said going forward, earnings are expected
to be supported by healthy loans growth for 2010 and a further pick-up in
non-interest income from stronger bond origination and trading gains.
The industry's risk weighted capital and core capital ratio stood at a
comfortable 15.1 per cent and 13.2 per cent respectively, while non-performing
loans (NPLs) ratio remains at near a record low of 2.1 per cent which provides
some upside surprise in future capital management, it said.
"Our large cap banking top picks are CIMB and Maybank with the mid-cap stock
being RHB Capital," the research firm said.
On the construction industry, OSK Research maintains a neutral call, as it
believes, the RM10 billion mark achieved last year could easily be breached by
year-end based on job announcements on Bursa Malaysia.
There were RM7 billion (US$2.23 billion) worth of domestic jobs awarded from
January to August, representing a 11.9 per cent year-on-year increase.
-- BERNAMA
Among the models are replacements for the Myvi and Persona as well as facelifts
for the Altis and Nissan March, the research firm said in its research note
Thursday.
"Valuation-wise, we have started to roll over our earnings per share (EPS) to
reflect financial year 2011 earnings, which in turn saw many of our target
prices being increased, with buy calls mostly maintained," it added.
OSK Research said UMW Holdings was finally upgraded to a buy from neutral on the
stellar results from its auto and equipment division in addition to the more
bullish view on its oil and gas division going into next year.
"Our top pick for the automotive sector remains Tan Chong Motors, as it embarks
on structural changes, that will rev up volume and earnings over the next three
years," the research firm explained.
On the financial sector, OSK Research said going forward, earnings are expected
to be supported by healthy loans growth for 2010 and a further pick-up in
non-interest income from stronger bond origination and trading gains.
The industry's risk weighted capital and core capital ratio stood at a
comfortable 15.1 per cent and 13.2 per cent respectively, while non-performing
loans (NPLs) ratio remains at near a record low of 2.1 per cent which provides
some upside surprise in future capital management, it said.
"Our large cap banking top picks are CIMB and Maybank with the mid-cap stock
being RHB Capital," the research firm said.
On the construction industry, OSK Research maintains a neutral call, as it
believes, the RM10 billion mark achieved last year could easily be breached by
year-end based on job announcements on Bursa Malaysia.
There were RM7 billion (US$2.23 billion) worth of domestic jobs awarded from
January to August, representing a 11.9 per cent year-on-year increase.
-- BERNAMA
