RHBInvest Research Highlights 29th December 2011

29th December 2011

 

Malaysia Equities Top Story Education – Lacking Excitement                                        Neutral Sector Update ¨       After the sector's lackluster performance in 2011, we believe that earnings will be more stable in 2012. Growth is expected to be organically-driven as the players' focus on optimising the utilisation of their existing campuses.

Bulletins

Company News Comment Rating Consumer: Retail The Malaysian Retailers Association (MRA) expects the industry to grow 6% in 2012, slightly slower than its estimates of 6.5% for 2011. The MRA said the unresolved eurozone debt crisis, the potential US double-dip recession and the recent decline in China export market will affect the country's economy in 2012. (Business Times) Neutral. MRA's estimates for the slightly slower growth in retail sales is in line with our expectations of a slower consumer spending growth in 2012 of 5.3% (down from an estimated 6.6% in 2011). We believe the continued growth in consumer spending would drive the retail sales revenue growth, which augurs well for the retail companies under our coverage, i.e AEON, Amway and Parkson. Overweight