SPSETIA, DIGI, BUMIPUTERA-COMMERCE FROM HDBS

S P Setia
Best proxy to sector re-rating (Buy; RM4.00; SPSB MK; TP
RM5.00)
• 8MFY09 sales hit RM1b and could exceed its RM1.1b
FY09 target. It might bring forward the RM5b mixed
development project near Midvalley in KL
• Top big-cap pick to benefit from positive policy changes
• Reiterate Buy, TP raised to RM5.00 from RM4.50, based
on narrower 10% discount to RNAV of RM5.54

Digi.Com
Focus on quality (Hold; RM22.90; DIGI MK; TP RM22.80)
• Digi to win broadband share with cheap entry-level
broadband plans and quality services
• Low broadband penetration offers Digi ample room to
win market share
• Impact only in FY11F due to gradual rollout because
Digi focuses on quality
• Maintain HOLD with RM22.80 price target

Comments
Bumiputera-Commerce
Positive newsflow on BCHB prospects (Fully valued; RM9.10;
BCHB MK; TP RM8.30)
BCHB has made several announcements over the past few
days. While some are not new, we believe they signal positive
prospects for BCHB.
(1) BCHB may revise its 2009 targets. BCHB currently has
an ROE target for 2009 at 12.5% but looks set to revise it
when it publishes its 2Q09 results sometime in August. We
have imputed a 12.2% ROE estimate for FY09 and 13.2% for
FY10.
(2) Aggressive drive for IPO work following the waiver of
the Bumiputera equity requirement could further boost fee
income, which we have partially priced into our forecasts for
2H09 and 2010