MAYBULK AND BJ TOTO by HDBS

Malaysian Bulk Carriers
Riding the down-cycle (Fully Valued; RM3.06; MBC MK; TP
RM2.25)
• The recent run up in Maybulk’s share price is likely not
sustainable. Expect more downward pressure in the
near-term
• Outlook for the drybulk shipping sector remains bleak
mainly due to severe vessel oversupply
• Initiate coverage with a Fully Valued call and RM2.25 TP
based on asset break-up value. Our valuation implies
1.2x CY10F BV and 16.4x CY10F EPS

Berjaya Sports Toto
BLand Places 40m BST Shares (Hold; RM4.98; BST MK; TP:RM4.80)Parent Berjaya Land (BLand) has placed out 40m of BST’s shares for RM190m or RM4.75/share. This would dilute
BLand’s stake by 3.2% from 50.7% to 47.5%.Concurrently, major shareholder Tan Sri Vincent Tan has placed out 15.6m shares (including Berjaya Corp and hisother private companies). All these would collectively dilute Tan Sri’s stake by 4.4% from 57.4% (direct 5.58%, indirect
51.85%) to 53.0%.The placement was done at a 4.6% discount to BST’s lastclosing price and values BST at 13.6x FY11 PE. The price is close to our dividend discount model value of RM4.83.
Net proceeds from the placement would be used for partialredemption of BLand’s RM848m 8% secured exchangeable bonds due in 2011 which bondholders can exercise a put option for early redemption on 15 Aug09 at 100% nominal value. The placement exercise follows the 80sen bumper dividends declared by BST in 4QFY09, including a 1-for-14treasury shares distribution valued at 35 sen. Collectively,BLand would have RM667m in hand (including the Treasury
shares receivable which may be placed out later should theneed arise) for the potential bond redemption (79%).

Maintain Hold on BST, and our DDM-TP of RM4.80