January Industrial Output Grew 12.7%
Malaysia’s industrial output expanded 12.7% in January from a year ago as the economic recovery gains traction. Based on figures from the Department of Statistics released on Thursday, output from the key manufacturing sector grew 16.4% in January from a year earlier, faster than the revised 10.7% growth in December. The increase in manufacturing output was led by rises in the production of electrical and electronic products, as well as wood, furniture and paper products. Electricity output expanded 19.8%, from a 14.1% expansion in December. Mining sector output expanded 4.1% after shrinking 0.2% in December. On month, the industrial production index expanded 2.9%.

KKB Engineering Cut To Buy
OSK Research raised KKB Engineering TP to RM7.01 from RM4.36 to reflect short term Sarawak theme premium but cut its call to Trading Buy from Buy given short term nature of premium. “KKB’s share price has appreciated by 64.9% over the past 2 weeks after the announcement of its above-expected FY09 results as well as bonus issue and share split on Feb 23,” the brokerage said. It also added that the appreciation could partly be due to anticipation of more contracts awarded closer to state elections.

UOB-KayHian Cuts Setia To Hold
UOB-KayHian cut SP Setia to Hold from Buy due to recent gains, but raised its TP to RM4.66 from RM4.20 after strong 1Q10 sales, with management increasing its guidance for full-year sales target to RM2b from RM1.6b. “While we remain positive on its new sales momentum and earnings growth potential, we believe these have been priced into the stock,” the brokerage said.