0223 GMT [Dow Jones] STOCK CALL: Credit Suisse keeps Muhibbah Engineering (5703.KU) at Outperform, raises target price to MYR1.70 from MYR1.10. Notes 1Q FY09 net profit of MYR15 million fell 25% on-year due to lower margins from the infrastructure construction division, arising from higher material and input costs; but says 1Q typically Muhibbah's weakest, with 1Q earnings accounting for less than 20% of full-year numbers, thus "results were largely in line with expectations." Says new target price implies 34% upside potential; "in light of increasing risk appetite, we are reducing the discount to RNAV to 25%." Shares last +0.8% at MYR1.30. (PVA)
0213 GMT [Dow Jones] STOCK CALL: Credit Suisse maintains Alliance Financial Group (2488.KU) at Outperform. Notes FY09 net profit down 40% on-year at MYR229 million; says results incorporated some material pre-emptive provisions, "if we add back the expense write-back in FY08 (MYR51.8 million), operating profit would be flat year-on-year." Adds management expects NIM to recover from 2.65% in 4Q FY09 (vs 3% in 3Q), barring further OPR cuts; "management does not intend to engage in price competition on loans and plans to focus on preserving NIM instead of loan growth." Raises target price to MYR2.64 from MYR2.20 to factor in drop in cost of equity (11% vs 12.6% previously) arising from lower market risk premium. Shares last down 0.5% at MYR2.16. (PVA)
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