20050926 Hwang DBS Daily Focue

> Highlights
>
> Telco - Complex MNP needs more than 2 years
>
> Shortly into the public inquiry on MNP (mobile number portability) held by
> the MCMC (Malaysian Communication and Multimedia Commission) last week, we
> discovered the complexity in implementing MNP which will impede the
> government's hope for major changes in the Malaysian mobile telephony
> industry. More likely, we think MNP would only be available in 2008. MNP
> had resulted in 3-9% porting rate in the first two years in other prepaid
> dominant markets. While market shares could shift, cost of Malaysian
> celcos will rise under MNP as they launch more loyalty programs to retain
> subscribers and to compete for market shares. We maintain Neutral on the
> sector. Digi (DIGI MK) is our sole buy call with a DCF-based price target
> of RM7.10.
>
> Comments
> 
>
> KFC - New substantial of QSR shareholder sues the Securities Commission -
> Fully Valued
>
> 
>
> Dr. Abdul Wahid Suhaime, a politician who had contested a seat in the last
> elections with Party Keadilan Nasional, bought a 10.24% stake in QSR last
> week. He took the Securities Commission to court for allegedly not acting
> on an earlier complaint claiming that Wisdom Innovative Technology Sdn Bhd
> and other parties were acting in concert but not disclosed. It was
> gathered that a decision on the possibility of a hearing for the legal
> suit will only be made next Friday. (Business Times)
>
> New twists and corporate maneuvers are not unexpected in the tussle for
> ultimately control over KFC. Hence, we maintain our Fully Valued call
> until Kulim clearly emerges as the controlling shareholder - it would need
> to clear legal and financial hurdles. Meanwhile, maintaining our RM3.10
> target price for KFC, based on 25% discount to RNAV.
>
> MISC - Uptrend in tanker index - Maintain Fully Valued
>
> The Baltic Dirty Tanker Index for certain routes has jumped 38% from a
> week ago. However, average YTD Aframax tanker rates are still 29% lower
> compared to the average for last year. The uptrend needs to be sustained
> to have a significant impact on earnings. We expect a 10% decline in
> tanker rates this year. A 5% increase from our forecast will increase our
> net profit forecast by 5%. We maintain Fully Valued on MISC with a RM17.20
> price target, based on 11.5x CY06 EPS.
>  <<20050926.pdf>>