SenseCents

STOCK NEWS & ANALYSIS
CIMB - We reiterate our OVERWEIGHT stance on the water sector with key re-rating catalysts being i) the award of Langat 2, ii) the award of the tunnelling portion of the water transfer programme and iii) eventual consolidation of Selangor’s water assets. Our top pick for the sector is Puncak Niaga (PUNCAK) which is a potential privatisation play. For direct exposure to Langat 2, investors should consider KPS and JAKS Resources.

CIMB - We are more excited about VADS following our recent visit for two reasons. 1) It expects to clinch a new offshore contact care service (CCS) contract soon; and 2) the ramp-up from existing customers is faster than expected. For now, we maintain our target price of RM7.75 based on 15.4x CY09 P/E.

Code/Price/Date/#Shares/Closing/Remarks
DBHD/0.3875/0906/4000/0.31/ hold
Dialog/1.639/1009/8000/1.60/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Idaman/0.3287/1025/4000/0.18/ hold
K1/0.9280/0411/4000/1.03/ hold
MEMS/0.175/0214/1000/0.17/ hold
MVest/0.804/0719/5000/0.815/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.075/ hold
Putera/0.56/1115/3000/0.57/ hold
SKPRes/0.1633/1102/3000/0.145/ hold
Tebrau/1.2251/0822/4000/1.06/ hold