August Watch out !

* TSH Resources 1H resutls beat forecast FY11 forecast raised by 7%. Maintain Buy, TP reduced to RM3.81 from RM3.84.
* UMW 1H net profit came in within ours but below consensus’ forecasts. O&G division returned to red. Maintain forecast, Hold call and TP of RM7.20. An interim single-tier DPS of 10 sen was declared.
* Alam Maritim returned to profitability in 2Q. Earnings forecast cut by 33% in FY11, TP lowered from RM1.10 to RM0.85. Maintain Hold.
* KNM’s 2Q results dissapointed. Cut earnings forecasts by 34-64% in 2011-13, TP cut from RM2.00 to RM1.19, downgrade call to Sell from Hold.
* QL Resources 1Q results came in below expectations. FY12-13 forecasts cut by 12%. TP lowered from RM3.75 to RM3.39. Buy call maintained.
* Malaysia’s vehicle sales rose 20% MoM in July to 50,252 units. Lacking catalyst, we maintained Underweight call on the automotive sector.
* Axiata 2Q results below expectations. Earnings forecasts cut by 11% (FY11) and 10% (FY12). TP lowered from RM5.80 to RM5.50. Call downgraded from Buy to Hold.
* KLCCP results met expectations. Recent sell down provided higher total return. Call upgraded from Hold to Buy. Maintain TP of RM3.50.
* AirAsia 2Q results dissapointed. Maintain Hold and TP RM3.36. 
* MAS reported net loss of RM470m in 2Q, bringing net loss of RM820m in 1H. Expect better outlook in 2H.Maintain Buy and TP RM2.70. 
* CIMB 2Q results beat expectations. Reduce TP to RM8.90 from RM9.60 on lower 2.2x P/Bv valuations. Maintain Buy call. 
W-o-W performance (until 23rd Aug) : DJIA +3% | STOXX +2% | NIKKEI -0.5% | HSENG +1.5% | KLCI +0.1%