20050922 Hwang DBS Daily Focus

> Highlights
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> TWP - New Toyo RTO viewed positively - Maintain Hold
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> With its latest acquisition, TWP will be enjoying positive long term
> effects, with earnings expected to be boosted by 3Q06 assuming smooth
> implementation. New Toyo will hold a controlling stake of 58% post
> acquisition. TWP remains a dividend play, with yields to remain at 6% and
> potentially higher going forward due to its generate business. For now, we
> are maintaining our target price of RM2.50, implying a PE of 8x FY06 EPS.
> Maintain Hold.
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> Comments
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> Tanjong - Moscow lottery operations to start by year-end - Maintain Hold
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> Tanjong PLC's associate Yuvenga JSC will start its online lottery game
> "Moscow Olympic Lottery" before end-2005. Tanjong owns 50% of Uniclic Ltd,
> which in turn holds a 49% stake in Yuvenga. Yuvenga has the licence until
> May 2013 to operate the game.
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> The joint venture, which was originally slated to take off in mid-year, is
> expected to be modestly profitable after initial start-up losses.
> Meanwhile, we maintain our forecasts for Tanjong, which has not imputed
> any contribution from this venture. Maintaining our Hold call and
> reviewing our RNAV-based target price of RM13.60 for an upgrade, which
> factors in the good likelihood of the company acquiring Egyptian utility
> assets from Electricite de France, thus boosting Tanjung earnings by
> c.20-30%.
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> Green Packet - Penetrated into Taiwan - Maintain Hold
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> GRPB announced that it has been chosen by Chung Hwa International
> Communication Network Co Ltd (CCNet) as a technology provider for
> Mobile-Taipei (M-Taipei) County project. The project is part of a RM427m
> exercise to link Taipei wireless, which in turn is a precursor to link the
> whole of Taiwan wirelessly.
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> We understand that GRPB's portion of the project is valued at US$5m
> (RM18.9m) with a rollout spanning three years. This represents a 10%
> upside to our FY06 forecast earning.
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> We are certainly pleased to hear that GRPB has established itself in a new
> market thereby helping to diversify its customer and earnings base. We are
> also in the midst of reviewing our outlook on GRPB with an upside bias
> given the new development. Meanwhile, maintaining our Hold call and RM1.10
> price target, based on 10x FY06 earnings. 
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