0743 GMT [Dow Jones] STOCK CALL: Citigroup keeps Buy on Tanjong (2267.KU) with MYR20.60; likes stock for resilient earnings and cheap valuations; "in terms of FY10E-11E P/Es, the stock is trading at an undemanding 9X with low earnings risk," says analyst Yong Yin Ng. Notes Tanjong is in good position to scout for expansion opportunities in power utility division with fast improving gearing ratio (from 58% in FY09 to 41% by FY11), mostly ring-fenced borrowings. "Despite a 16% share price appreciation year to date, the stock still offers a dividend yield of 6.5% based on a net payout ratio of less than 50% of net profits and less than 30% of its annual free cash-flow," he adds. Tanjong +3.8% at MYR16.42. (VGB)
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