Bursa Malaysia Corporate Actions - 8 May

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1. Tuesday , 08 May, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . O ve rs e a s - C h i n e s e Ba n k in g C o r p : R o b u st 1 Q F Y 1 8 R e su l t s 2 . S P S e t i a Be r h a d : P r iv a t is a t io n A g re e m e n t W i th D BK L f o r Q u a li ty Su s ta in a b le Pe o p le H o u sin g Pro je c t in C h e r a s Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck W at ch , D ai l y Mon e y F lo w , D a il y St oc k Sc reen ( Loc al ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
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Daily Market Commentary Tuesday , 08 May 2018 TA Research, e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (07.05.2018) Volume (mil) +/-chg (RMmn) Main Market 1,069.8 Warrants 583.0 ACE Market 269.0 Bond 0.9 ETF 0.0 LEAP 0.0 Total 1,922.7 Off Market 174.9 157.2 79.1 83.8 -4.3 -0.6 0.0 1,937.1 115.7 41.5 0.2 0.0 0.0 2,094.6 130.1 310.2 -32.3 2.4 5.5 -0.1 -0.7 0.0 252.7 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP May Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA Review & Outlook Value Value/ +/-chg Volume Up Down 1.81 0.20 0.15 0.27 1.12 0.00 1.09 1.77 123 46 13 0 5 0 187 % chg % YTD chg 1,828.20 12,753.01 14,392.40 1,823.00 -13.63 -106.28 -183.26 -9.50 -0.74 -0.83 -1.26 -0.52 1.75 -1.46 -15.59 2.13 24,357.32 7,265.21 7,567.14 22,467.16 2,461.38 29,994.26 3,532.86 1,779.80 5,885.10 3,136.65 1,822.18 6,084.47 94.81 55.59 0.00 -5.62 0.00 67.76 -12.52 -0.07 92.75 45.61 33.12 21.58 0.39 0.77 0.00 -0.03 0.00 0.23 -0.35 0.00 1.60 1.48 1.85 0.36 -1.46 5.24 -1.57 -1.31 -0.25 0.25 3.82 1.49 -7.40 -5.16 -4.06 0.32 (mn) (RM) 1.50 2.70 0.15 10.54 0.63 1.63 0.08 Counter MAYBANK PBBANK TENAGA PCHEM CIMB IHH AXIATA MAXIS HLBANK SIMEPLT Mkt Cap. Chg (RM’mn) (RM) 115,157 91,517 90,851 67,520 62,470 49,108 46,244 43,617 37,721 37,133 -0.08 -0.10 -0.08 -0.01 -0.10 -0.05 -0.04 -0.06 -0.16 -0.03 Important Dates VS - 1:4 Bonus Issue - BI of up to 397.5m shares. 1 bonus share for every 4 existing shares held. Ex-Date: 04/05/2018. Entitlement Date: 08/05/2018. LISTING ON: 10/05/2018. WZSATU - 1:3 Bonus Issue - BI of up to 157.3m shares. 1 bonus share for every 3 existing shares held. Ex-Date: 10/05/2018. Entitlement Date: 14/05/2018. LISTING ON: 15/05/2018. Buying momentum on index heavyweights should dwindle further pending a clearer market direction, given a widely expected fierce contest between the ruling Barisan Nasional (BN) and the opposition coalition on GE14 tomorrow. Crucial support for the index is revised lower to the 4/4/18 pivot low of 1,811 and subsequently the 200-day ma (1,795). The 10 and 30-day moving averages which are now at 1,855 and 1,859, will be the immediate upside hurdle, followed by stronger resistance at 1,880. Any sharp price weakness on FGV towards the low of 29/10/16 (RM1.52) would be a good buying opportunity for rebound upside towards the 38.2%FR (RM1.77), with stronger resistance coming from the 100-day ma (RM1.83) or the 38.2%FR (RM1.91). Similarly, further dip on UEM Sunrise would be attractive to buy for potential rebound towards the 38.2%FR (99sen), with next hurdle seen at the 50%FR (RM1.06) and 61.8%FR (RM1.13). Key support level is at the pivot low of 25/08/15 (75sen). News Bites Top 10 KLCI Movers Based on Mkt Cap. Off Market SEM 130.0 @ SIME 20.0 @ AEM 11.0 @ MAYBANK 5.0 @ WTK 4.1 @ UNISEM 2.3 @ MMAG-PA 2.1 @ 443 228 71 7 1 0 750 Blue chips led a sell-off on the broader market Monday, as investors continued to wind down their investments on the local market ahead of the general elections this Wednesday, ignoring the firmer regional markets after U.S. stocks rallied Friday on a solid April jobs report. The KLCI lost another 13.63 points to close at 1,828.20, off the low of 1,821.79 and high of 1,842.56, as losers thrashed gainers 750 to 187 on moderate trade totaling 1.92bn shares worth RM2.09bn. Vol. (mn) 13.25 6.13 18.36 8.61 21.79 2.35 2.29 2.59 1.07 1.82 • The international reserves of Bank Negara Malaysia was marginally down 0.45% to US$109.5bn as at April 30 and is sufficient to finance 7.5 months of retained imports and is 1.1 times the short-term external debt. • SP Setia's Bhd 50% owned Retro Highland will undertake a public housing project for Dewan Bandar Kuala Lumpur and in return, it will be awarded a piece of land in Cheras where it will carry out a project with a GDV of RM11.03bn. • Nestle SA (holding company of Nestle (Malaysia) Berhad) agreed to enter a partnership with Starbucks Corp. to market the coffee chain's consumer and food-service products globally in a first tie-up of major rivals in the java market. • Malayan Banking Bhd will spend RM30mn this year to implement a digital upskilling programme aimed at increasing its employees' digital literacy. • Tan Chong Motor Holdings Bhd is investing RM500mn to build the Tan Chong Automotive and Commercial Vehicle Hub in Bagan Datuk as part of its strategic business plan. • GFM Services Bhd has proposed to raise up to RM20.68mn via a private placement of up to 10% of its issued shares in tranches to part finance its acquisitions of KP Mukah Development Sdn Bhd. • Ranhill Holdings Bhd's net profit for the 1QFY18 jumped 15.6% to RM18.1mn or 2.04 sen per share, from RM15.7mn or 1.77 sen per share a year ago due to higher income contribution from its environment segment. • Luxchem Corp Bhd is targeting a 10% year-on-year revenue increase for the current financial year ending Dec 31, 2018 as the group contends with foreign exchange fluctuation and higher crude oil prices. • Some Bank of Japan policymakers warned against premature debate of an exit from ultra-loose policy even as they worried about the rising cost of prolonged easing, minutes of the BOJ's March meeting showed. • The Trump administration is seeking to complete its overhaul of the North American Free Trade Agreement with new rules that would penalize the Mexican auto industry unless it boosts wages-to roughly $16 an hour. Exchange Rate USD/MYR 3.9440 0.003 USD/JPY 109.07 0.020 EUR/USD 1.192 -0.0039 Commodities Futures Palm Oil (RM/mt) 2,378.00 35.00 Crude Oil (Brent) 75.56 0.55 Gold ($/tr.oz.) 1,314.80 -1.00 Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. Tuesday , May 08, 2018 FBMKLCI: 1,828.20 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Brief Market View, News in Brief: Corporate, Economy, and Share Buybacks Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my M a r k e t V i e w Sideways Pending GE14 Results Blue chips led a sell-off on the broader market Monday, as investors continued to wind down their investments on the local market ahead of the general elections this Wednesday, ignoring the firmer regional markets after U.S. stocks rallied Friday on a solid April jobs report. The KLCI lost another 13.63 points to close at 1,828.20, off the low of 1,821.79 and high of 1,842.56, as losers thrashed gainers 750 to 187 on moderate trade totaling 1.92bn shares worth RM2.09bn. Support Revised Lower at 1811, Resistance at 1,855 Buying momentum on index heavyweights should dwindle further pending a clearer market direction, given a widely expected fierce contest between the ruling Barisan Nasional (BN) and the opposition coalition on GE14 tomorrow. Crucial support for the index is revised lower to the 4/4/18 pivot low of 1,811 and subsequently the 200-day ma (1,795). The 10 and 30-day moving averages which are now at 1,855 and 1,859, will be the immediate upside hurdle, followed by stronger resistance at 1,880. Bargain FGV & UEMS Sunrise Any sharp price weakness on FGV towards the low of 29/10/16 (RM1.52) would be a good buying opportunity for rebound upside towards the 38.2%FR (RM1.77), with stronger resistance coming from the 100-day ma (RM1.83) or the 38.2%FR (RM1.91). Similarly, further dip on UEM Sunrise would be attractive to buy for potential rebound towards the 38.2%FR (99sen), with next hurdle seen at the 50%FR (RM1.06) and 61.8%FR (RM1.13). Key support level is at the pivot low of 25/08/15 (75sen). China Outperform Regional Peers Most Asian markets firmed on Monday after a tame reading on U.S. wages lessened the risk of faster rate hikes by the Federal Reserve, although Sino-U.S. trade tensions and a looming deadline for an Iranian nuclear deal lurked in the background. Friday’s U.S. jobs report showed unemployment dropping to a new cycle low of 3.9 percent yet wages remained benign, suggesting the Federal Reserve would keep raising rates but at a gradual pace. Geopolitics also remain in focus this week with President Donald Trump saying he’ll decide by May 12 whether the U.S. stays in or pulls out of the Iran nuclear deal. Earnings season continues, and on the economic front traders will watch out for an expected acceleration in U.S. consumer prices. China stocks rebounded sharply on Monday amid optimism about robust April economic data despite lingering Sino-U.S. trade tensions, as investors bid up tech shares after regulators detailed rules that pave the way for domestic flotation of overseas-listed technology giants. The Shanghai Composite Index gained 1.5 percent to 3,136.64 points. Australia's S&P/ASX 200 tacked on 0.36 percent to close at 6,084.50 amid broad-based gains, with energy and materials names leading the advance. Meanwhile, Japan’s Nikkei share average ended the day little changed, with the index finished lower by 0.03 percent at 22,467.16. Markets in South Korea were closed for a holiday. Page 1 of 7
4. 8-May-18 Tech Lift Wall Street Higher Wall Street climbed on Monday , boosted by Apple’s sixth straight day of gains and by a surge in oil prices to their highest since 2014. Apple added 0.72 percent, extending gains since it reported results last week after the company last week unveiled a USD100 billion buyback of stock and after Warren Buffett told CNBC that Berkshire Hathaway increased its large stake in the company by 75 million shares in the first quarter. The S&P energy index also ended 0.18 percent higher, although it surrendered earlier stronger gains after U.S. President Donald Trump tweeted that he would announce his decision on whether to withdraw from the Iran nuclear deal. Trump tweeted that he would make an announcement on a possible decertification of the Iran nuclear agreement that the Obama administration had reached with the Middle Eastern country back in 2015. European leaders had urged Trump not to abandon the pact. Trump had until May 12 to decide whether to keep the deal intact. Abandoning it would trigger a reimposition of economic sanctions on Iran, hampering oil exports from the country and cutting global supply. Seven of the 11 major S&P sectors rose, with the technology index climbing 0.79 percent. The Dow Jones Industrial Average rose 94.81 points, or 0.39 percent, to end at 24,357.32, the S&P 500 gained 9.21 points, or 0.35 percent, to 2,672.63 and the Nasdaq Composite added 55.60 points, or 0.77 percent, to 7,265.21. Page 2 of 7
5. 8-May-18 News In Brief Corporate SP Setia 's Bhd 50% owned Retro Highland (RH) will undertake a public housing project for Dewan Bandar Kuala Lumpur (DBKL). In return, it will be awarded a piece of land in Cheras where it will carry out a project with a gross development value (GDV) of RM11.03bn. The project entails the construction of 3,971 residential units, 112 units of shops/stalls, a market and other public facilities. In return, RH will be awarded with 52.25 acres of leasehold land in Cheras to be used for mixed development (StarBiz). Nestle SA (holding company of Nestle (Malaysia) Berhad) agreed to enter a partnership with Starbucks Corp. to market the coffee chain’s consumer and food-service products globally in a first tie-up of major rivals in the java market. Nestle will pay Starbucks US$7.2bn upfront in cash for a business that has annual sales of US$2.0bn. Nestle expects the deal to contribute positively to its earnings per share and organic growth targets as from 2019. Nestle plans to bring together three iconic coffee brands i.e. Starbucks, Nescafe and Nespresso in the coffee market and the agreement is expected to complete by end of 2018 subject to customary regulatory approval. The agreement also excludes all sales of products within Starbucks coffee shop and Ready-To-Drink products (StarBiz) Comment: We are neutral on the impact of this partnership on Nestle Malaysia as we have yet to receive further guidance from management on the implementation strategy of the deal within Malaysia. According to various resources, Malaysia has RM8.0bn worth of coffee industry in 2017 and is fast growing at 30% a year. Note that 44% of this market is held by Starbucks Coffee Malaysia. While Nestle's Nescafe and Nespresso brands in Malaysia are experiencing high competition within the instant coffee segment. Hence we believe this partnership is in line with Nestle's sustainable growth strategy and is expected to support the growth of market share within the instant coffee segment. No change in earnings forecast for Nestle Malaysia and maintain our Sell call on the stock with unchanged target price of RM129.90/share based on DDM valuation. Malayan Banking Bhd (Maybank) will spend RM30mn this year to implement a digital upskilling programme aimed at increasing its employees' digital literacy and equipping them with capabilities that will ensure their relevance now and in the future. Dubbed FutureReady, the training programme is mandatory for all employees (The Edge). Tan Chong Motor Holdings Bhd is investing RM500mn to build the Tan Chong Automotive and Commercial Vehicle Hub in Bagan Datuk as part of its strategic business plan. For the first phase, the Group said it would commence with a total investment outlay of RM100mn, which would be channeled towards land acquisition and the construction of a bus and truck plant. Once completed, this new plant will cater to the production expansion needs of the local and export markets (Bernama). Ranhill Holdings Bhd’s net profit for the first quarter ended March 31, 2018 (1QFY18) jump 15.59% to RM18.14mn or 2.04 sen per share, from RM15.69 mn or 1.77 sen per share a year ago. According to Ranhill, the better quarterly and year-to-date numbers were due to higher income contribution from its environment segment, which saw a rise in volume of water consumption that is in line with the increase in number of customer accounts (The Edge). Page 3 of 7
6. 8-May-18 GFM Services Bhd has proposed to raise up to RM20 .68mn via a private placement of up to 10% of its issued shares in tranches to part finance its acquisitions of KP Mukah Development Sdn Bhd (KPMD). The acquisition will provide a platform for the group to enhance its revenue and gain immediate access to a profitable facilities management company which currently holds a concession awarded by the Government and Universiti Teknologi MARA (Bursa Malaysia). Three-A Resources Bhd’s net profit fell 39.57% to RM6.24mn for the first quarter ended March 31, 2018 (1QFY18), versus RM10.32mn last year on lower profit margin as a result from higher raw material prices as well as higher net foreign exchange losses. Its quarterly revenue was down marginally by 0.68% to RM102.48 mn from RM103.18 mn in 1QFY17 due to lower sales volume (Bursa Malaysia). Revenue Group Bhd, which is seeking a listing on Bursa Malaysia's ACE Market by July this year, today signed an underwriting agreement with M&A Securities Sdn Bhd for its initial public offering (IPO) exercise (The Edge). Luxchem Corp Bhd is targeting a 10% year-on-year revenue increase for the current financial year ending Dec 31, 2018 (FY18) as the group contends with foreign exchange fluctuation and higher crude oil prices. According to management, fluctuation in foreign exchange rates will remain a key factor deciding Luxchem's future performance. This is given that the company's purchases and exports are mainly denominated in US dollars (The Edge). HSS Engineers Bhd is looking to expand its presence in the water and power sectors, in line with the projected increased government spending in these areas. The Group has also sets its sitghts on Indonesia and Phillipines, in line with its strategy of expanding into ASEAN countries (StarBiz). The auditors of Eden Inc Bhd have indicated the existence of significant material uncertainties during the course of their audit of the financial statements ended Dec 31, 2017(FY17), which may cast significant doubt on the group’s ability to continue as a going concern. In the audit report filed to Bursa Malaysia today, it was highlighted that Eden Inc had reported a loss after tax of approximately RM18.56mn for FY17, and the current liabilities of the group had exceeded its current assets by RM62.76mn. In addition to that the group had reported operating cash outflows of RM10.99mn (The Edge). Page 4 of 7
7. 8-May-18 N e w s I n B r i e f Economy Asia Bank Negara Reserves Slid 0 .45% to US$109.5bn as at April 30 The international reserves of Bank Negara Malaysia (BNM) was marginally down 0.45% to US$109.5bn as at April 30, from US$110bn as at April 13. In a statement, the central bank said the reserves position is sufficient to finance 7.5 months of retained imports and is 1.1 times the short-term external debt. Foreign currency, the biggest portion, slipped to US$102.9bn from US$103.2bn as at April 13, while the International Monetary Fund reserves position stayed at US$800mn. Special drawing rights and gold were also maintained at US$1.2bn and US$1.6bn respectively, while other reserve assets dipped to US$3bn from US$3.2bn. The bank's total assets stood at RM449.23bn as at April 30, while currency in circulation was at RM108.41bn. (The Edge Market) Bank Negara Seen Holding Key Rate on Moderating Core Inflation Malaysia's central bank is expected to leave its benchmark interest rate unchanged at a policy meeting on Thursday, a day after the country holds a general election, a Reuters poll showed. Eleven economists polled by Reuters were unanimous in expecting Bank Negara Malaysia (BNM) to hold its overnight policy rate at 3.25%, as core and headline inflation moderated during the first quarter of 2018. In January, the central bank raised its benchmark rate for the first time since July 2014, in a bid to "normalise" policy ahead of the election. (The Star) Some in BOJ Warned of Premature Exit Debate in March: Minutes Some Bank of Japan policymakers warned against premature debate of an exit from ultraloose policy even as they worried about the rising cost of prolonged easing, minutes of the BOJ’s March meeting showed, reinforcing yet again the challenge of hitting an elusive inflation target with a diminishing tool-kit. The nine-member board took time debating how to best communicate their policy intentions at the March meeting. Some board members said growing market interest on when the BOJ could whittle down its massive stimulus program was partly behind the recent market volatility, the minutes showed. “It was important for the BOJ to thoroughly explain to the public ... that the economy had not yet reached a phase where it should consider the timing and measures of a so-called exit from monetary easing,” some members said. “While normalization, or a gradual reduction in the degree of monetary accommodation, could become a topic for consideration in the future, the BOJ needs to explain to markets that normalization ... would be different from monetary tightening,” one of them was quoted as saying. At the March meeting, the BOJ kept policy steady and its governor signaled readiness to ramp up stimulus if the economy lost steam, in a push-back against speculation it could whittle down monetary support earlier than expected. (Reuters) Australia's Business Conditions Hit Record High: NAB Australia's business conditions reached its equal highest level since the survey started in 1997, data from National Australia Bank showed. The business conditions index climbed 6 points to 21 in April. At the same time, the business confidence index rose to 10 from 8 a month ago. "The record high in the business conditions index in the April Survey simply reinforces what has been evident since the middle of last year, that business activity in Australia is robust," Alan Oster, NAB group chief economist, said. The survey revealed that conditions increased in all industries except for manufacturing and retail and, in trend terms, were strongest in mining. By component, trading conditions, profitability and employment conditions all registered strong gains in April and they remained well above their historical average. According to Oster, the survey continues to point to subdued inflation and wages growth. Page 5 of 7
8. 8-May-18 In the meantime , The construction sector in Australia continued to expand strongly in April, though the rate of growth eased since March, the latest survey from the Australian Industry Group showed on Monday. The Performance of Construction Index dropped to 55.4 in April from 57.2 in March. However, any reading above 50 indicates expansion in the sector. Commercial construction was again the strongest performing sub-sector in April, with its rate of growth only mildly slower than March's twelve-and-a-half year high. Both activity and new orders increased at slower rates in April, while employment marked a full year of expansion with its highest pace of growth in 31/2 years. (RTT) United States U.S. Consumer Borrowing Cools on Slump in Revolving Credit U.S. consumer borrowing rose at a slower pace in March as credit-card debt outstanding declined by the most since the end of 2012, Federal Reserve figures showed Monday. A 0.9% annualized decline in first-quarter credit-card debt outstanding shows a waning appetite for borrowing after a 10.3% surge in the final three months of 2017. At the same time, the pace of non-revolving credit picked up in the first quarter, partly explained by a rebound in motorvehicle sales. The Fed’s consumer credit report doesn’t track debt secured by real estate, such as home equity lines of credit and home mortgages. The results are consistent with first-quarter data that showed household spending cooled following a strong run of gains. Consumption is expected to rebound as consumers benefit from lower taxes in addition to the strong job market. At the same time, wage gains remain moderate and gasoline costs are edging up, which may hinder discretionary spending unless they take on more debt. (Bloomberg) U.S. Pushes Nafta Partners to Accept a Wage Floor in Auto Sector The Trump administration is seeking to complete its overhaul of the North American Free Trade Agreement with new rules that would penalize the Mexican auto industry unless it boosts wages—to roughly $16 an hour. The administration is winning some support from U.S. auto makers for its Nafta proposals by including terms that would favor U.S. manufacturers over Asian and European rivals that produce cars in the U.S. Support from Detroit might help the administration reach its goal of concluding a Nafta deal by mid-May, which could allow it to push the pact through Congress by year-end. Under Nafta, U.S. manufacturers have produced in Mexico where wages are cheaper, but the Trump administration now is seeking to force Mexican factories to pay more for labor—or send auto jobs back to the U.S. or Canada. Robert Lighthizer, the U.S. trade representative and lead negotiator for the Trump administration, is reworking Nafta to require that 40% of the content of any car that trades duty-free within the North American bloc to come from workers who earn above a particular wage level, according to industry officials familiar with the trade negotiations. (WSJ) Europe and Uni ted Kingdom Fall in Eurozone Investor Sentiment Slows in May — Survey Eurozone investor sentiment edged lower in May, after a string of heavy falls that came amid a soft patch of data covering the currency bloc. A gauge of investor sentiment compiled by Sentix, a research institution, fell to 19.2 in early May from 19.6 in April. While the rate of decline eased, the level is now at its lowest since February 2017 and has dropped dramatically from 32.9 at the start of the year. Sentix said persistent concerns over trade — and particularly over whether the US will slap the eurozone with tariffs — had weighed on sentiment. The sub-index of current conditions fell to its lowest level since October 2017, while expectations dropped to the weakest point in more than three years. “The sentix economic indices continue to reflect a loss of momentum in the eurozone economy,” the group said in its monthly report. Eurozone economic growth cooled down in the first quarter after a strong performance in 2017. In fact, figures released last week show that the bloc’s economy expanded at the weakest pace in 18 months over the period. Data covering the second quarter have also been soggy. (Financial Times) Page 6 of 7
9. 8-May-18 Germany 's Factory Orders Fall Unexpectedly Germany's factory orders declined unexpectedly in March, figures from Destatis revealed. Factory orders dropped 0.9% month-on-month in March, bigger than the revised 0.2% decrease in February. Orders were expected to climb 0.5%. Excluding major orders, new orders decreased 0.1% on month in March. On a yearly basis, growth in factory orders rose slightly to 3.1% from 3.0% in February. Economists had forecast orders to grow 5% in March. Data showed that manufacturing turnover gained 0.4% on month in March, in contrast to a 2.4% drop in February. (RTT) Share Buy-Back 07-May 2018 Company ASTINO CHINWEL DUFU E&O FIAMMA GBGAQRS GRANFLO HAIO INCKEN KFIMA KOMARK MALAKOF N2N NYLEX P&O PRESTAR RCECAP SNTORIA SYSCORP TROP Bought Back 37,000 53,000 125,000 90,000 20,000 130,000 20,000 16,600 10,500 10,000 463,300 750,000 1,600,000 10,000 5,800 50,000 116,300 65,000 606,800 128,000 Price (RM) Hi/ Lo (RM) 0.80/0.78 1.56/1.54 1.08/1.05 1.40 0.48/0.445 1.66/1.63 0.21 4.89/4.85 0.69/0.68 1.47 0.18/0.17 0.89 1.03/1.01 0.665/0.66 1.07 0.86 1.24/1.22 0.56/0.555 0.27/0.26 0.875/0.87 0.80/0.77 1.60/1.54 1.08/1.03 1.40/1.36 0.48/0.445 1.66/1.57 0.21 4.89/4.83 0.69/0.68 1.47 0.18/0.16 0.89/0.875 1.03/0.99 0.665/0.66 1.07/1.06 0.87/0.855 1.27/1.21 0.565/0.55 0.27/0.255 0.875/0.865 Total Treasury Shares 1,524,537 5,212,900 12,233,900 29,361,747 24,059,000 1,061,302 9,649,000 9,337,688 17,899,900 493,500 8,386,200 62,138,700 24,879,200 6,735,024 11,786,093 7,941,500 14,956,725 8,460,800 10,476,600 6,910,942 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 7 of 7
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 07-May-18 AUTOMOBILE BAUTO 2.21 2.33 5.4% Buy 2,562 0.57 12.1 19.0 18.3 11.6 5.0 5.2 2.47 -10.5 1.84 20.1 MBMR 2.39 2.68 12.1% Hold 934 0.79 24.7 26.9 9.7 8.9 2.5 2.9 2.60 -8.1 2.01 18.9 0.5 8.6 PECCA 1.12 1.62 44.6% Buy 206 0.71 9.7 10.9 11.5 10.2 4.5 4.5 1.70 -34.1 1.10 1.8 -27.7 SIME 2.69 2.55 -5.2% Sell 18,294 1.63 13.2 16.4 20.4 16.4 1.2 1.5 3.06 -12.1 2.03 32.8 21.7 UMW 6.14 5.52 -10.1% Sell 7,173 1.32 28.6 40.2 21.4 15.3 2.3 3.3 6.98 -12.0 4.70 30.6 18.1 BANKS & FINANCIAL SERVICES ABMB 4.10 4.60 12.2% Sell 6,347 1.20 32.6 35.8 12.6 11.4 3.9 3.9 4.49 -8.7 3.62 13.3 0.5 AFFIN 2.45 2.40 -2.0% Sell 4,760 0.93 22.2 23.9 11.0 10.2 3.3 3.3 2.98 -15.0 2.22 13.9 9.5 AMBANK 3.68 4.70 27.7% Buy 11,092 1.59 38.1 44.4 9.7 8.3 4.9 4.9 5.59 -34.2 3.61 1.9 -16.6 CIMB 6.67 8.60 28.9% Buy 62,470 1.59 58.2 59.9 11.5 11.1 4.4 4.5 7.39 -9.7 5.81 14.8 2.0 HLBANK 18.44 21.30 15.5% Buy 37,721 0.92 116.8 126.8 15.8 14.5 2.6 2.6 20.02 -7.9 13.78 33.8 8.5 MAYBANK 10.54 11.50 9.1% Buy 115,157 0.96 73.6 77.7 14.3 13.6 5.2 5.2 10.84 -2.8 9.10 15.8 7.6 PBBANK 23.70 29.50 24.5% Buy 91,517 0.72 153.3 166.5 15.5 14.2 2.7 2.7 24.50 -3.3 19.90 19.1 14.1 RHBBANK 5.09 6.10 19.8% Buy 20,411 1.58 54.3 59.0 9.4 8.6 2.9 2.9 5.61 -9.3 4.71 8.1 1.8 BURSA 7.14 8.07 13.0% Buy 5,757 0.98 29.2 30.0 24.4 23.8 3.4 3.4 7.65 -6.7 6.31 13.1 5.8 ANNJOO 2.71 4.34 60.1% Buy 1,451 1.13 42.2 45.0 6.4 6.0 8.0 9.1 3.98 -31.9 2.71 0.0 -29.8 CHINHIN 1.09 1.32 21.1% Buy 606 0.97 10.7 10.5 10.2 10.4 5.6 5.0 1.49 -26.8 1.00 9.5 -9.9 CSCSTEL 1.33 1.70 27.8% Buy 491 0.90 17.4 17.9 7.6 7.4 7.0 7.2 2.05 -35.0 1.27 4.7 -13.6 ENGTEX 0.97 1.38 43.0% Buy 421 0.97 13.8 15.7 7.0 6.1 4.3 5.7 1.52 -36.5 0.95 1.6 -12.3 GADANG 0.81 1.34 65.4% Buy 536 1.43 14.0 16.6 5.8 4.9 3.7 3.7 1.37 -40.9 0.80 1.2 -27.0 GAMUDA 5.07 5.84 15.2% Buy 12,485 0.84 34.4 36.4 14.7 13.9 2.4 2.4 5.52 -8.2 4.58 10.7 2.2 IJM 2.64 2.96 12.1% Hold 9,577 1.47 13.7 18.2 19.2 14.5 3.6 3.6 3.60 -26.7 2.53 4.3 -13.4 BUILDING MATERIALS CONSTRUCTION KAB 0.22 0.38 70.5% Buy 7 na 31.4 37.3 0.7 0.6 4.5 5.5 0.33 -33.3 0.20 10.0 -26.7 PESONA 0.29 0.42 44.8% Buy 202 1.61 4.1 4.3 7.0 6.7 5.2 5.2 0.70 -58.6 0.29 0.0 -35.6 SENDAI 0.88 0.79 -9.7% Sell 683 1.59 9.9 8.7 8.9 10.0 1.1 1.1 1.39 -37.1 0.68 28.7 1.2 SUNCON 2.31 2.65 14.7% Hold 2,985 0.76 14.7 16.4 15.7 14.0 3.5 3.9 2.64 -12.5 1.92 20.3 -8.0 WCT 1.21 1.50 24.0% Sell 1,702 1.16 11.3 10.8 10.7 11.2 2.5 2.5 2.48 -51.1 1.13 7.1 -25.3 LITRAK 5.65 6.26 10.8% Hold 2,983 0.38 45.6 47.1 12.4 12.0 4.4 4.4 6.15 -8.1 5.37 5.2 1.8 CARLSBG 17.88 18.09 1.2% Buy 5,500 0.71 87.8 91.8 20.4 19.5 4.8 4.9 20.88 -14.4 14.30 25.1 17.5 HEIM 20.46 21.64 5.8% Hold 6,181 0.47 93.0 101.6 22.0 20.1 3.7 3.9 23.04 -11.2 17.30 18.3 8.3 AEON 2.01 1.97 -2.0% Buy 2,822 0.32 7.5 8.9 26.7 22.5 2.2 2.5 2.47 -18.6 1.45 38.6 14.2 AMWAY 7.71 8.59 11.4% Buy 1,267 0.51 48.3 49.9 15.9 15.4 5.2 5.3 8.10 -4.8 6.97 10.6 5.5 F&N 34.76 30.69 -11.7% Sell 12,741 0.58 96.0 114.0 36.2 30.5 2.0 2.2 36.76 -5.4 23.40 48.5 28.7 CONSUMER Brewery Retail HUPSENG 1.06 1.25 17.9% Buy 848 0.47 5.8 6.2 18.2 17.2 5.7 5.7 1.28 -17.2 1.02 3.9 -2.8 JOHOTIN 0.90 1.48 65.4% Buy 278 1.31 11.1 11.7 8.1 7.6 6.7 7.3 1.76 -49.1 0.90 0.0 -26.0 NESTLE 135.10 129.90 -3.8% Sell 31,681 0.68 322.2 360.2 41.9 37.5 2.2 2.4 163.00 -17.1 81.00 66.8 30.9 PADINI 4.50 4.67 3.8% Sell 2,961 0.93 28.0 30.4 16.1 14.8 2.8 2.9 5.50 -18.2 3.26 38.2 -14.8 -28.5 POHUAT 1.28 1.78 39.1% Buy 281 0.50 20.1 23.1 6.4 5.5 4.7 6.3 2.07 -38.1 1.15 11.3 QL 5.14 5.41 5.3% Hold 8,339 0.65 13.3 15.5 38.5 33.1 0.9 0.9 5.31 -3.2 3.65 40.7 18.2 SIGN 0.53 0.92 73.6% Buy 120 0.89 6.6 8.7 8.0 6.1 4.7 6.6 1.04 -49.0 0.48 10.4 -24.8 22.46 34.72 54.6% Buy 6,413 1.50 170.8 168.8 13.1 13.3 7.1 7.1 46.44 -51.6 22.46 0.0 -43.9 GENTING 8.50 11.58 36.2% Buy 32,568 1.37 54.1 60.6 15.7 14.0 1.9 1.9 9.92 -14.3 8.47 0.4 -6.9 GENM 4.99 6.68 33.9% Buy 28,236 1.50 27.6 32.0 18.1 15.6 2.4 2.6 6.28 -20.6 4.59 8.7 -10.0 2.07 3.22 55.6% Buy 2,788 0.57 19.9 26.0 10.4 8.0 7.7 8.7 2.83 -26.9 2.06 0.5 -7.6 CCMDBIO 2.89 3.40 17.6% Buy 806 0.80 16.2 17.7 17.8 16.3 1.6 1.7 3.05 -5.2 1.97 46.7 14.2 IHH 5.96 6.40 7.4% Sell 49,108 0.73 11.9 15.0 50.2 39.9 0.5 0.6 6.33 -5.8 5.42 10.0 1.7 KPJ 0.93 1.13 22.2% Buy 3,898 0.60 3.9 4.3 23.7 21.3 2.3 2.6 1.14 -18.9 0.84 10.1 -4.6 HARTA 5.83 7.80 33.8% Sell 19,311 0.95 12.6 14.4 46.4 40.5 1.3 1.5 6.64 -12.2 2.50 133.2 9.2 KOSSAN 6.60 9.73 47.4% Buy 4,220 0.65 37.4 42.1 17.6 15.7 2.8 3.2 8.79 -24.9 5.95 10.9 -18.6 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves SUPERMX 2.90 2.70 -6.9% Buy 1,901 0.57 20.0 22.6 14.5 12.8 1.8 2.1 3.01 -3.7 1.69 71.6 45.0 TOPGLOV 9.80 12.20 24.5% Buy 12,517 0.56 35.3 42.7 27.8 22.9 1.5 1.8 10.44 -6.1 4.79 104.6 22.7 KAREX 0.77 0.70 -8.5% Sell 767 0.72 2.3 3.3 33.9 22.9 0.4 0.8 2.26 -66.2 0.75 2.0 -41.2 SCIENTX 7.45 10.01 34.4% Buy 3,643 0.92 67.5 79.4 11.0 9.4 2.8 3.5 9.85 -24.4 7.45 0.0 -14.0 SKPRES 1.40 2.00 42.9% Buy 1,750 0.89 10.4 14.8 13.5 9.5 3.7 5.3 2.35 -40.4 1.27 10.2 -38.6 ASTRO 1.76 2.90 64.8% Buy 9,176 1.06 12.4 13.8 14.1 12.7 7.1 7.1 2.94 -40.1 1.75 0.6 -33.6 MEDIA PRIMA 0.33 0.45 38.5% Sell 360 1.36 -3.8 -1.8 na na 0.0 0.0 1.19 -72.7 0.29 12.1 -57.2 STAR 1.06 1.20 13.2% Sell 782 1.15 6.2 5.9 17.1 17.9 8.5 8.5 2.22 -52.2 1.04 1.9 -35.8 INDUSTRIAL MEDIA
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.38 0.69 84.0% Buy 659 1.94 4.0 4.3 9.4 8.7 2.7 2.7 0.66 -43.2 0.34 11.9 -22.7 LCTITAN 5.77 7.47 29.5% Buy 13,115 na 47.8 50.7 12.1 11.4 3.6 4.0 6.53 -11.6 4.14 39.4 22.8 MHB 0.76 0.81 7.3% Sell 1,208 1.48 0.5 1.7 157.2 45.3 0.0 0.0 0.99 -23.7 0.63 20.8 -8.5 MISC 7.06 7.00 -0.8% Sell 31,514 0.92 50.1 53.8 14.1 13.1 4.2 4.2 7.90 -10.6 6.73 4.9 -4.9 PANTECH 0.58 0.77 33.9% Buy 427 1.40 6.4 7.0 9.0 8.3 4.3 4.7 0.74 -22.3 0.51 12.7 -10.9 PCHEM 8.44 9.00 6.6% Hold 67,520 0.80 52.5 53.8 16.1 15.7 3.1 3.1 8.65 -2.4 6.80 24.1 9.6 SAPNRG 0.64 0.84 31.3% Buy 3,835 2.97 -5.0 -1.7 na na 0.0 0.0 1.97 -67.5 0.40 62.0 -9.9 SERBADK 3.38 4.15 22.8% Buy 4,964 na 27.7 31.5 12.2 10.7 2.7 3.0 3.68 -8.2 1.80 87.8 4.3 UMWOG 0.28 0.39 41.8% Buy 2,259 2.61 0.4 1.2 72.0 23.7 0.0 0.0 0.62 -55.6 0.22 27.9 -9.8 UZMA 1.40 1.57 12.1% Hold 448 1.20 12.9 13.9 10.9 10.1 0.0 0.0 1.87 -25.1 1.18 18.6 9.4 FGV 1.59 2.09 31.4% Buy 5,801 1.68 2.0 3.4 78.7 46.7 3.1 3.1 2.18 -27.1 1.51 5.3 -5.9 IJMPLNT 2.25 2.23 -0.9% Sell 1,981 0.27 6.5 8.2 34.4 27.4 3.6 4.0 3.22 -30.1 2.19 2.7 -17.9 IOICORP 4.69 5.43 15.8% Buy 28,639 0.88 19.0 21.3 24.7 22.1 5.6 3.5 4.81 -2.5 4.21 11.5 5.9 KFIMA 1.47 1.89 28.6% Buy 414 0.71 13.7 13.8 10.8 10.7 6.1 6.1 1.96 -25.0 1.44 2.1 -6.4 KLK 25.36 27.76 9.5% Hold 27,008 0.59 107.6 116.0 23.6 21.9 2.1 2.2 25.98 -2.4 23.80 6.6 1.4 SIMEPLT 5.46 6.27 14.8% Hold 37,133 na 19.6 20.0 27.9 27.4 2.6 2.9 6.00 -9.0 4.58 19.2 -9.0 TSH 1.25 1.81 44.8% Buy 1,726 0.50 9.3 9.6 13.4 13.0 1.9 2.0 1.82 -31.3 1.23 1.6 -24.2 UMCCA 6.05 6.21 2.6% Sell 1,269 0.39 17.0 22.4 35.7 27.0 2.6 3.0 7.08 -14.5 5.97 1.3 -7.1 GLOMAC 0.48 0.40 -16.7% Sell 381 0.67 1.5 2.5 31.8 19.4 2.1 2.1 0.65 -25.6 0.45 6.7 -13.4 HUAYANG 0.45 0.58 28.9% Sell 158 0.97 0.7 3.4 67.9 13.2 1.1 1.1 1.10 -59.1 0.44 2.3 -26.2 IBRACO 0.56 0.80 42.9% Buy 278 na 7.2 10.7 7.7 5.2 5.4 7.1 0.92 -39.1 0.50 12.0 -31.3 IOIPG 1.51 1.92 27.2% Buy 8,314 0.95 14.9 14.7 10.2 10.3 4.0 4.0 2.22 -32.0 1.47 2.7 -18.4 MAHSING 1.04 1.59 52.9% Buy 2,525 0.91 11.8 11.3 8.8 9.2 6.3 6.3 1.64 -36.6 0.98 6.1 -28.3 SIMEPROP 1.37 1.51 10.2% Hold 9,317 na 7.5 7.5 18.2 18.3 2.9 2.2 1.78 -23.0 1.04 31.7 -23.0 SNTORIA 0.56 0.76 35.7% Buy 313 0.43 8.3 8.6 6.8 6.5 1.8 1.8 0.82 -31.6 0.55 1.8 -19.4 SPB 4.20 5.10 21.4% Hold 1,443 0.68 18.7 24.0 22.4 17.5 2.9 2.9 5.50 -23.6 4.14 1.4 -14.3 SPSETIA 3.01 3.73 23.9% Buy 11,708 1.10 19.8 19.4 15.2 15.5 4.0 4.0 4.38 -31.3 2.77 8.7 -24.8 SUNWAY 1.53 1.75 14.4% Hold 7,455 1.00 11.8 12.4 12.9 12.3 3.9 3.9 1.96 -21.9 1.46 4.8 -6.1 SUNREIT 1.66 1.87 12.7% Hold 4,889 1.02 10.0 10.7 16.6 15.5 6.0 6.4 1.90 -12.6 1.48 12.2 -12.6 CMMT 1.16 1.48 27.6% Buy 2,367 0.92 7.9 8.4 14.7 13.9 7.0 7.4 1.83 -36.6 0.98 18.4 -36.6 PLANTATIONS PROPERTY REIT POWER & UTILITIES MALAKOF 0.89 0.82 -7.3% Sell 4,371 1.05 6.7 7.3 13.3 12.2 7.9 7.9 1.24 -28.6 0.85 4.1 -9.7 PETDAG 26.40 24.08 -8.8% Sell 26,227 0.58 114.7 116.3 23.0 22.7 3.3 3.3 28.18 -6.3 20.81 26.8 9.8 PETGAS 17.58 19.46 10.7% Buy 34,786 0.90 99.3 100.0 17.7 17.6 4.0 4.0 19.80 -11.2 15.82 11.1 0.6 TENAGA 16.00 18.22 13.9% Buy 90,851 0.58 131.3 127.5 12.2 12.6 4.1 4.0 16.34 -2.1 13.72 16.6 4.8 YTLPOWR 0.91 1.16 28.2% Sell 7,176 0.93 8.5 8.7 10.7 10.3 5.5 5.5 1.50 -39.7 0.90 0.6 -29.8 TELECOMMUNICATIONS AXIATA 5.11 6.50 27.2% Buy 46,244 1.65 15.9 19.4 32.1 26.3 1.6 3.1 5.82 -12.2 4.54 12.6 -6.9 DIGI 4.55 5.15 13.2% Buy 35,376 0.94 19.6 20.2 23.2 22.5 4.3 4.4 5.12 -11.1 4.36 4.4 -10.8 MAXIS 5.58 5.95 6.6% Sell 43,617 1.07 24.9 24.8 22.4 22.5 3.6 3.6 6.60 -15.5 5.30 5.3 -7.2 TM 5.00 7.20 44.0% Buy 18,790 0.71 22.8 24.9 21.9 20.1 4.1 4.5 6.69 -25.3 4.90 2.0 -20.6 ELSOFT 2.47 3.30 33.6% Buy 681 0.95 13.1 14.9 18.9 16.5 3.7 4.3 2.95 -16.3 2.22 11.3 -8.5 IRIS 0.15 0.23 53.3% Buy 371 2.63 0.0 0.6 545.3 26.9 0.0 0.0 0.25 -38.8 0.14 11.1 -18.9 INARI 1.79 2.40 34.1% Buy 5,576 0.55 9.1 10.2 19.6 17.6 3.6 4.0 2.55 -29.7 1.32 35.9 -21.0 MPI 7.60 10.70 40.8% Buy 1,512 1.11 73.9 86.9 10.3 8.7 4.2 4.2 14.52 -47.7 7.57 0.4 -39.8 UNISEM 1.69 2.75 62.7% Buy 1,240 1.50 13.1 18.6 12.9 9.1 6.5 6.5 4.25 -60.2 1.60 5.6 -53.7 TECHNOLOGY Semiconductor & Electronics TRANSPORTATION Airlines AIRASIA 3.70 4.93 33.2% Hold 12,365 1.03 41.0 41.0 9.0 9.0 2.2 2.2 4.75 -22.1 2.89 28.0 10.4 AIRPORT 8.85 8.61 -2.7% Sell 14,684 1.04 18.0 18.8 49.3 47.1 1.5 1.1 9.45 -6.3 7.86 12.6 0.7 Freight & Tankers PTRANS 0.24 0.46 91.7% Buy 304 na 2.3 3.7 10.4 6.5 2.9 4.6 0.38 -37.1 0.23 6.7 -14.3 TNLOGIS 1.05 1.45 38.1% Buy 479 1.02 12.0 12.3 8.7 8.5 4.8 4.8 1.79 -41.5 0.99 6.1 -21.6 WPRTS 3.10 4.06 31.0% Buy 10,571 0.48 15.6 20.0 19.9 15.5 3.7 4.8 4.06 -23.6 3.10 0.0 -16.2 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) % upside Recom Market Cap. (S$m) Beta EPS (cent) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 28.97 36.10 24.6% Buy 74,275 1.16 212.3 246.0 13.6 11.8 2.2 2.4 30.8 -5.8 19.68 47.2 OCBC 13.17 16.60 26.0% Buy 55,086 1.18 109.6 123.3 12.0 10.7 6.7 7.7 14.0 -6.2 10.21 29.0 18.6 6.3 UOB 29.29 31.70 8.2% Hold 48,694 1.17 216.8 244.2 13.5 13.5 2.7 2.7 30.4 -3.6 22.50 30.2 11.5 PLANTATIONS WILMAR 3.20 3.50 9.4% Buy 20,475 0.85 25.4 27.7 12.6 11.5 3.1 3.4 3.9 -17.3 2.97 7.7 3.6 IFAR 0.30 0.37 23.3% Buy 430 1.04 3.1 3.9 9.8 7.7 1.4 1.8 0.5 -41.7 0.30 0.0 -23.1 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
12. RESULTS UPDATE Tuesday , May 08, 2018 STI: 3,532.86 Sector: Finance THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: S$16.60 (+26.0%) Overseas-Chinese Banking Corp. Last Traded:S$13.17 Robust 1QFY18 Results Li Hsia Wong BUY Tel: +603-2167 9610 liwong@ta.com.my Review OCBC posted stronger 1QFY18 results. The improvement was anchored by a combination of robust performance across the group’s franchise, along with sharply lower loan allowances and modest increase in overhead expenses due to effective cost management. 1QFY18 net profit accelerated 29.2% YoY to S$1,112mn – in line with ours and consensus forecasts. Annualised ROE widened to 11.8% vs. 9.6% a year ago. Accounting for 23% of our estimates, net interest income (NII) increased sequentially for the 4th straight quarter. 1QFY18 NII climbed 11.2% YoY to S$1,415mn, driven by asset growth and improved margins. While the net interest margin (NIM) stood unchanged at 1.67% QoQ, it increased by 5 bps YoY on the back of higher customer loan yields, an increase in money market gapping income and average loans-to-deposits ratio. Asset growth was robust. In constant currency terms, loans and advances accelerated by 12% YoY and 5% QoQ. Loan growth was underpinned by increases in Greater China (+16% YoY, +6% QoQ) and Singapore (+8% YoY, +4% QoQ). We note strengthening of loan growth in Malaysia (+4% YoY, +3% QoQ) while the growth in Indonesia eased during the quarter (+1% YoY, -1% QoQ). By industry, the expansion in loans were spurred by higher housing loans, building and construction, other consumerrelated loans, general commerce as well as loans to the financial sector. 1QFY18 non-interest income (non-NII) ballooned 8.0% to S$918mn. Fee income, which accounts for almost half of non-NII surged 11% YoY, was lifted by an 18.6% jump in the wealth management income. These comprises income from private banking, and sales of unit trusts, bancassurance products, structured deposits and other treasury products to consumer customers. Fee income was also driven by higher contributions from Loan Related Activities and Brokerage and Fund Management. Further supporting nonNII in 1QFY18 were an increase in profit from life assurance from S$49mn in 1Q17 to S$166mn. These increases helped cushion the decline in net trading income, which fell 41% YoY attributed to lower treasury income. www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) OCBC SP O39 STI 4,182.7 55,086.2 14.04/10.21 5,393.4 79.8 1.18 Selat Pte Ltd - 11.0 Lee Foundation Singapore - 4.3 Singapore Investments - 3.8 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating Financial Indicators ROE (%) NIM (%) Cost/Income (%) NPL ratio (%) Loan loss coverage (%) BV/ Share (S%) Price/ BV (x) FY18 FY19 4583.1 5157.5 4718.0 5202.0 97.1 99.1 Hold (Downgraded) FY18 11.4 1.7 40.2 1.2 87.4 10.0 1.3 FY19 11.9 1.7 39.4 1.0 105.7 11.0 1.2 % of FY 24.0 24.0 Within Within OCBC (4.6) 0.8 5.8 25.5 STI (2.2) 0.4 2.9 10.0 Scorecard vs. TA vs. Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FSSTI Registering positive JAWS, total operating expenses expanded by 6.1% YoY largely from higher staff costs. On the back of stronger income growth, the cost-to-income ratio improved to 44.2% from 45.9% a year ago. Allowances for impaired loans improved substantially to S$13mn in 1QFY18 vs. S$108mn in 1QFY17. QoQ, total allowances for loans and other assets strengthened to S$12mn from S$178mn in 4QFY17. Standing at S$3,452mn, the formation of new non-performing assets (NPA) slipped from S$3,468mn in 4Q17 but increased 20% YoY due to Source: Bloomberg Page 1 of 3
13. 8-May-18 the downgrade of exposures associated with the offshore support services and vessels sector . The NPL ratio for the O&G sector improved QoQ to 0.85% from 0.91% in December 2017. Excluding the O&G portfolio, the NPL ratio for the rest of the group’s portfolio improved to 0.53% from 0.54% in 4Q17. Sequentially, overall NPL ratio also strengthened to 1.38% (Dec 2017: 1.45%) while the allowance coverage broadened to 78.1% (Dec 2017: 76.9%) respectively. Capital ratios remained relatively stable, with common equity tier 1 (CET1) and total capital ratio at 13.1% and 15.8% respectively. Elsewhere, the LCR and NSFR stood comfortably above regulatory guidelines at 149% and 106%. Impact No change to our earnings estimates. Outlook OCBC continued to deliver another set of encouraging results, with strong performance driven by the group’s wealth management and private banking operations. Wealth management income rose across key customer segments with Bank of Singapore’s AUM rising 19% YoY to US$102bn. We continue to believe that OCBC is in position to tap on improving macro outlook and rising personal affluence in region. Backed by the diversity of OCBC’s geographical network and business franchise, the group also benefited from better YoY earnings from all major subsidiaries. Collectively, Great Eastern Holdings, OCBC Wing Hang, OCBC Malaysia and OCBC NISP contributed to some 32% of group’s profit. Strong capital and liquidity position should also help OCBC weather though an increasingly demanding regulatory environment. Valuation Rolling valuations forward to FY19, we raise TP to S$16.60 from S$14.30, valuing the stock at an implied FY18e PBV of 1.65x. BUY maintained on OCBC. Table 1: Earnings Summary (S$mn) FYE Dec Net interest income Non-interest income Total operating income Operating expenses Operating profit Net profit EPS (sen) EPS growth (%) Gross div (sen) Div yield (%) FY16 5052.0 3437.0 8489.0 3788.0 4701.0 3473.0 83.0 (11.0) 36.0 2.7 FY17 5423.0 4213.0 9636.0 4034.0 5602.0 4146.0 99.1 19.4 37.0 2.8 FY18F 6086.7 4562.7 10649.3 4276.0 6373.3 4583.1 109.6 10.5 38.0 2.9 FY19F 6558.6 4932.3 11490.9 4532.6 6958.3 5157.5 123.3 12.5 38.0 2.9 FY20F 7151.3 5315.8 12467.1 4804.6 7662.6 5823.8 139.2 12.9 38.0 2.9 Page 2 of 3
14. 8-May-18 Table 2 : 1QFY18 Results Analysis (S$mn) YE 31 Dec 1Q FY17 4Q FY17 1Q FY18 QoQ YoY Net interest income 1,272.0 1,424.0 1,415.0 (0.6) 11.2 1,272.0 1,415.0 11.2 Non interest income 850.0 1,214.0 918.0 (24.4) 8.0 850.0 918.0 8.0 2,122.0 2,638.0 2,333.0 (11.6) 9.9 2,122.0 2,333.0 9.9 Operating expenses (973.0) (1,075.0) (1,032.0) (4.0) 6.1 (973.0) (1,032.0) 6.1 Operating profit 1,149.0 1,563.0 1,301.0 (16.8) 13.2 1,149.0 1,301.0 13.2 Amortisation of intangibles (26.0) (26.0) (25.0) (3.8) (3.8) (26.0) (25.0) (3.8) Allowances (168.0) (178.0) (12.0) (93.3) (92.9) (168.0) (12.0) (92.9) Total income YTD FY17 YTD FY18 YoY Associates & JVs 114.0 28.0 125.0 346.4 9.6 114.0 125.0 9.6 Tax & non-controlling items (208.0) (353.0) (277.0) (21.5) 33.2 (208.0) (277.0) 33.2 Net profit 861.0 1,034.0 1,112.0 7.5 29.2 861.0 1,112.0 29.2 EPS (sen) 20.6 24.7 26.6 7.5 29.2 20.6 26.6 29.2 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, May 08, 2018, the analyst, Wong Li Hsia, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
15. COMPANY UPDATE Tuesday , May 08, 2018 FBMKLCI: 1,828.20 Sector: Property THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM3.73 (+24.0%) SP Setia Berhad Last Traded: RM3.01 Privatisation Agreement With DBKL for Quality Sustainable People Housing Project in Cheras Thiam Chiann Wen Tel: +603-2167 9615 cwthiam@ta.com.my Privatisation Agreement With DBKL for Quality Sustainable People Housing Project SP Setia announced the long-awaited privatisation agreement to kick start the government’s land redevelopment project in Cheras. Recall in 2011, DBKL announced that the consortium comprising SP Setia and Tradewinds had been picked for the redevelopment of the ageing Sri Johor, Sri Pulau Pinang and Sri Melaka low-cost flats and the Taman Ikan Emas cluster houses in Cheras. This is part of DBKL’s urban renewal initiatives under the KL Structure Plan 2020. Yesterday, Retro Highland, a 50-50 jointly controlled entity of SP Setia and Tradewinds, had finally entered into a privatisation agreement with DBKL for the planning, design, construction, completion and commissioning of Quality Sustainable People Housing (QSPH) project, which entails the construction of 3,971 residential units, 112 units of shops/stalls, a market and other public facilities. In return, Retro Highland will be awarded with 52.25 acres of leasehold land in Cheras to be used for mixed development. More about the QSPH Project The QSPH development and exchange land are situated at the southeast of the Chan Sow Lin area in Kuala Lumpur and immediately east of the Cheras LRT Station. It is approximately 8km to Kuala Lumpur City Centre and 3km to Viva Mall and is located alongside Jalan Loke Yew – see Appendix 1. Under the privatisation agreement, the QSPH development will be undertaken in 2 phases with the respective components below: Figure 1: QSPH Development details Phase 1 2 Development Components • 1,192 residential units • 2,779 residential units • 112 shops/stalls • a 244-lots market; and • Public facilities such as an office, multi-purpose hall, prayer room, kindergraden and a funeral home Buy Estimated Construction Costs RM344.79mn Construction Period 4 Years RM835.12mn 4 Years www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) SPSB MK 8664 Main Market 3,889.8 11,708.4 4.38/2.77 3,471.8 21.5 1.1 PNB - 58.0 EPF - 9.2 KWAP - 7.7 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 0.0 0.0 743.8 728.7 698.2 809.9 106.5 90.0 Buy (Maintained) Financial Indicators Net gearing (%) CFPS (sen) P/CFPS (x) ROE ROA NTA/Share (RM) Price/ NTA (x) Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth FY18 18.6 (43.1) (7.0) 5.6 2.4 2.6 1.1 FY19 16.8 17.1 18.5 5.4 2.2 2.7 1.1 SP Setia 7.1 (8.2) (6.3) (14.9) FBM KLCI (0.5) (0.6) 4.8 3.4 (12-Mth) Share Price relative to the FBMKLCI Source: SP Setia The privatisation agreement is expected to be completed by 2028. More about the Exchange Land The privatisation agreement would allow Retro Highland to obtain 52.25 acres of leasehold land at an agreed value of RM1.19bn. This represents the total construction costs of QSPH of RM1.18bn and a cash consideration RM14.99mn. The exchange land will be transferred to Retro Highland in two phases, with first parcel of the exchange land measuring 13.89 acres to be Source: Bloomberg Page 1 of 5
16. 8-May-18 transferred to Retro Highland upon the completion of Phase 1 of the QSPH development . Meanwhile, the second parcel of the exchange land measuring 38.36 acres will be transferred to Retro Highland upon the completion of Phase 2 of the QSPH development. According to the announcement, the exchange land, which comprises residential and commercial components, is expected to generate gross development value (GDV) of RM11.03bn over 11 years. Our View This development will increase the group’s effective remaining GDV by 4.1% to RM141.1bn. All in, we view this development positively as it will further strengthen the group’s presence in the Klang Valley. Meanwhile, we also like the location of the exchange land, which is in the heart of Kuala Lumpur with readily available amenities, facilities and infrastructure. Based on the agreed value of RM1.19bn, the land cost works out to RM523psf, which is deemed fair as compared to Mah Sing’s cost in Cheras (RM538psf). In addition, based on the estimated GDV of RM11.03bn, the land cost makes up 11% of the total development value, which is below the general rule of thumb of 20%. Financial Impacts As the proposed development would be carried out by the jointly controlled entity, the impact to SP Setia’s earnings is insignificant until the development of exchange land takes place. Thus, we are leaving our FY18-20 earnings forecasts unchanged. Valuation Target price is maintained at RM3.73/share, based on target average blended CY18 PE/PB of 19x/1.4x. Reiterate Buy. Page 2 of 5
17. 8-May-18 Appendix 1 : Location of the QSPH Development and the Exchange Land Source: SP Setia Appendix 2: Phase 1 of the QSPH Development Source: SP Setia Page 3 of 5
18. 8-May-18 Appendix 3 : Phase 2 of the QSPH Development Source: SP Setia Appendix 4: Further Information on the Exchange Land Source: SP Setia Page 4 of 5
19. 8-May-18 Earnings Summary Profit and Loss (RM'mn) FYE Dec Revenue COGS Gross profit EBITDA Depreciation & Amortisation EBIT JV and Associates Finance cost PBT EI PBT Adj 2016 4,957.2 (3,515.8) 1,441.4 1,257.4 (26.0) 1,231.4 73.6 (120.3) 1,184.7 0.0 1,184.7 2017* 4,520.1 (3,006.5) 1,513.7 1,193.0 (64.4) 1,128.6 280.2 (137.4) 1,271.4 0.0 1,271.4 2018F 5,901.6 (3,895.1) 2,006.6 1,409.8 (87.2) 1,322.5 0.0 (178.0) 1,144.5 0.0 1,144.5 2019F 6,184.0 (4,081.4) 2,102.5 1,443.1 (87.9) 1,355.3 0.0 (186.5) 1,168.8 0.0 1,168.8 2020F 6,566.7 (4,334.0) 2,232.7 1,436.9 (85.0) 1,351.9 55.4 (195.3) 1,212.0 0.0 1,212.0 Tax MI Net profit Core net profit (285.4) (55.0) 808.0 808.0 (285.8) (99.8) 849.6 849.6 (274.7) (90.8) 743.8 743.8 (280.5) (124.3) 728.7 728.7 (290.9) (116.4) 769.6 769.6 Core EPS (sen) DPS (sen) 28.3 20.0 25.6 15.5 19.8 12.0 19.4 12.0 20.5 12.0 2016 1,184.7 26.0 (443.4) (345.7) 421.6 2017* 1,271.4 64.4 (339.6) (344.3) 651.9 2018F 1,144.5 87.2 (274.7) (476.0) 481.1 2019F 1,168.8 87.9 (280.5) (203.5) 772.6 2020F 1,212.0 85.0 (290.9) (331.3) 674.8 Capex Others CFI (1,750.7) 62.1 (1,688.6) (3,173.2) 112.7 (3,060.5) (2,100.0) 0.0 (2,100.0) (130.0) 0.0 (130.0) (130.0) 0.0 (130.0) Net Addition/Rpmt Dividend Paid Others CFF 632.7 (28.4) 1,052.4 1,656.8 3,605.2 (515.4) 263.3 3,353.1 2,798.0 (450.7) (196.4) 2,151.0 800.0 (450.7) (176.7) 172.6 (100.0) (450.7) (159.1) (709.7) Net Cash Flow 389.8 944.5 532.0 815.2 (164.9) FCF FCF/share (sen) (1,267.0) (43.0) (2,408.6) (72.4) (1,618.9) (43.1) 642.6 17.1 544.8 14.5 2017* 4,920.0 22.4 2018F 5,028.8 22.7 2019F 5,619.5 22.1 2020F 6,162.0 21.1 Cash Flow (RM'mn) PBT Depr & Amort Tax Others CFO Asssumptions (RM'mn) 2016 New Property Sales 3,823.0 Property margins (%) 23.4 * Based on pooling of interest accounting Balance Sheet RM'mn) FYE Dec PPE Land held for dev Concession assets Investment Properties Associates Others LT Assets 2016 271.5 5,579.6 11.6 1,016.0 1,677.7 1,965.1 8,843.8 2017* 425.1 10,795.8 15.5 1,319.7 2,463.0 2,753.8 15,309.9 2018F 437.9 12,795.8 15.5 1,319.7 2,463.0 2,753.8 17,322.7 2019F 380.0 12,895.8 15.5 1,319.7 2,463.0 2,753.8 17,364.8 2020F 325.0 12,995.8 15.5 1,319.7 2,518.4 2,809.3 17,465.2 Property dev. Cost Inventories Trade & other receivables Cash & Cash equivalent Others ST Assets Asset Held for Sale Total Assets 2,105.7 877.9 1,925.3 4,170.1 767.1 9,846.1 0.0 18,689.9 1,820.8 1,702.0 2,573.4 5,579.3 737.2 12,412.7 1.1 27,723.6 2,359.0 1,947.5 2,950.8 6,111.3 737.2 14,105.9 1.1 31,429.6 2,471.9 2,040.7 3,092.0 6,926.6 737.2 15,268.3 1.1 32,634.1 2,624.8 2,167.0 3,283.3 6,761.7 737.2 15,574.0 1.1 33,040.3 Trade and other payables ST Borrowings Others ST Liabilities 2,455.7 1,973.8 112.2 4,541.7 6,657.6 1,963.8 79.7 8,701.1 7,342.7 1,767.4 79.7 9,189.9 7,486.4 1,590.7 79.7 9,156.8 7,681.1 1,431.6 79.7 9,192.5 LT Borrowings Others LT Liabilities 3,892.1 13.1 3,905.2 5,008.8 215.5 5,224.3 6,808.8 215.5 7,024.3 7,608.8 215.5 7,824.3 7,508.8 215.5 7,724.3 Share Cap Reserves Shareholder's Funds Perpetual Bond MI 6,212.6 2,988.0 9,200.6 610.8 431.7 8,877.9 3,065.8 11,943.7 610.8 1,243.7 9,875.9 3,359.0 13,234.9 646.0 1,334.5 9,875.9 3,637.0 13,513.0 681.2 1,458.9 9,875.9 3,956.0 13,831.9 716.4 1,575.2 Liabilities + Equities 18,689.9 27,723.6 31,429.6 32,634.1 33,040.3 Ratios EPS Growth (%) PER (x) GDPS (sen) Div Yield (%) Net Debt (RMm) Net gearing (x) ROE (%) ROA (%) NTA (RM) P/NTA (x) 2016 (20.6) 10.6 20.0 6.6 1,695.7 0.2 8.8 4.3 2.4 1.1 2017* (9.8) 11.8 15.5 5.1 1,393.3 0.1 7.1 3.1 2.7 1.1 2018F (22.5) 15.2 12.0 4.0 2,464.9 0.2 5.6 2.4 2.6 1.1 2019F (2.0) 15.5 12.0 4.0 2,272.9 0.2 5.4 2.2 2.7 1.1 2020F 5.6 14.7 12.0 4.0 2,178.7 0.2 5.6 2.3 2.8 1.1 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, May 08, 2018, the analyst, Thiam Chiann Wen, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 5 of 5
20. Tuesday , 08 May, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s W at ch 2. D ai l y Mon e y F low of T e ch n i c a l St o ck W at ch 3. D ai l y Mon e y F low of FB MK L CI 4. D ai l y S t o c k S c r e e n Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
21. Technical View Tuesday , May 08, 2018 S REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Watch Malaysia FBM KLCI: 1,828.20 (-13.63, -0.74%) Chartist: Stephen Soo Name F BMKLCI AF F IN ABMB AMBANK AXIATA CIMB DIGI GAMUDA GE NTING GE NM IHH IOICOR P MALAKOF F MAXIS MAYBANK MBS B R HBBANK S IME TE NAGA TM WP R TS AIR AS IA AIR AS IA X AR MADA DIALOG DNE X E CO WOR LD E KOVE S T F GV GADANG HIAP TE CK HIBIS CUS KUB MALTON MUDAJ AYA MR CB S AP UR A E NE R GY S UNCON UE MS UMWOG WAS E ONG WCT Close 7/May 1828.20 2.45 4.10 3.68 5.11 6.67 4.55 5.07 8.50 4.99 5.96 4.69 0.89 5.58 10.54 1.12 5.09 2.69 16.00 5.00 3.10 3.70 0.38 0.83 3.02 0.38 1.15 0.79 1.59 0.81 0.37 0.83 0.38 0.80 0.64 1.00 0.64 2.31 0.89 0.28 1.40 1.21 Tel: +603-2167 9607 Change High Low (13.63) 1,842.56 1,821.79 0.00 -0.03 -0.03 -0.04 -0.10 0.02 -0.02 -0.13 -0.01 -0.05 -0.05 0.01 -0.06 -0.08 -0.02 -0.07 0.00 -0.08 -0.16 -0.13 -0.01 0.00 0.01 -0.04 -0.01 -0.02 -0.02 -0.05 -0.01 0.00 0.04 -0.01 0.01 -0.01 0.00 -0.02 0.01 -0.01 0.00 -0.02 0.01 2.45 4.12 3.73 5.13 6.77 4.59 5.10 8.65 5.01 6.05 4.77 0.89 5.60 10.58 1.14 5.18 2.71 16.10 5.14 3.24 3.73 0.38 0.83 3.05 0.39 1.16 0.81 1.66 0.83 0.38 0.83 0.39 0.80 0.65 1.00 0.67 2.31 0.90 0.28 1.43 1.23 2.42 4.06 3.65 5.05 6.65 4.51 5.01 8.50 4.90 5.89 4.62 0.88 5.50 10.50 1.11 5.09 2.63 15.84 5.00 3.10 3.65 0.37 0.81 3.01 0.38 1.09 0.79 1.54 0.81 0.37 0.77 0.37 0.77 0.63 0.95 0.63 2.23 0.89 0.27 1.37 1.17 Bollinger Bands Lower Mid Upper 1,834.93 1,865.53 1,896.12 2.20 4.10 3.65 5.13 6.90 4.43 5.05 8.60 4.83 6.00 4.71 0.87 5.64 10.44 1.09 5.13 2.52 15.75 5.11 3.22 3.66 0.36 0.77 2.99 0.36 1.02 0.77 1.60 0.78 0.36 0.72 0.38 0.78 0.61 0.98 0.52 2.03 0.88 0.24 1.33 1.14 2.39 4.30 3.86 5.32 7.16 4.54 5.11 8.87 5.04 6.07 4.77 0.89 5.80 10.62 1.14 5.30 2.70 15.90 5.39 3.38 3.86 0.38 0.85 3.09 0.39 1.11 0.84 1.76 0.85 0.39 0.84 0.41 0.81 0.67 1.02 0.68 2.18 0.93 0.28 1.42 1.20 2.57 4.50 4.06 5.52 7.43 4.65 5.18 9.14 5.25 6.14 4.82 0.92 5.96 10.79 1.18 5.46 2.89 16.04 5.66 3.53 4.05 0.40 0.92 3.19 0.42 1.20 0.91 1.91 0.92 0.43 0.95 0.45 0.85 0.72 1.06 0.84 2.33 0.97 0.32 1.51 1.26 RSI 14d 41.62 65.38 42.42 38.63 36.72 27.63 46.52 49.12 40.53 47.95 44.06 46.43 43.80 39.41 52.04 51.09 39.58 51.61 63.41 40.41 34.97 39.19 44.15 45.05 53.41 45.29 63.31 35.79 35.72 32.35 36.73 43.63 32.76 41.58 38.22 46.93 49.94 61.53 37.26 44.80 48.43 44.45 stsoo@ta.com.my Moving Averages 10d 30d 50d 1,861.72 1,861.24 1,858.73 2.47 4.27 3.80 5.28 7.14 4.54 5.10 8.77 5.02 6.06 4.77 0.89 5.77 10.67 1.13 5.29 2.65 15.90 5.28 3.34 3.79 0.38 0.83 3.06 0.38 1.14 0.81 1.70 0.82 0.38 0.81 0.40 0.80 0.65 1.01 0.69 2.18 0.91 0.28 1.42 1.21 2.37 4.28 3.87 5.35 7.16 4.56 5.11 8.85 5.00 6.05 4.77 0.89 5.76 10.58 1.12 5.28 2.67 15.90 5.33 3.42 3.93 0.38 0.84 3.04 0.39 1.08 0.87 1.74 0.86 0.40 0.83 0.42 0.81 0.68 1.00 0.63 2.13 0.95 0.29 1.43 1.22 2.39 4.24 3.99 5.38 7.18 4.63 5.07 8.88 5.07 6.06 4.73 0.89 5.80 10.51 1.15 5.31 2.67 15.81 5.48 3.49 4.07 0.39 0.84 2.91 0.41 1.12 0.92 1.79 0.92 0.43 0.86 0.44 0.85 0.73 1.02 0.60 2.17 0.98 0.30 1.49 1.31 www.taonline.com.my DMI DI + 18.23 31.25 13.66 17.63 8.49 11.33 19.93 18.83 13.20 20.72 7.31 8.02 15.10 9.79 19.17 20.28 14.87 19.18 24.47 15.33 17.04 19.31 19.09 18.78 22.00 20.51 27.54 14.49 16.18 18.26 13.08 16.60 17.94 19.37 15.41 18.46 24.19 27.17 11.97 17.97 18.77 18.15 DI 30.28 16.64 24.46 26.06 25.17 36.67 16.16 17.11 23.38 17.90 18.13 22.10 17.82 21.11 20.52 14.86 27.09 21.59 12.98 25.77 22.79 25.67 19.79 26.53 21.35 22.23 12.40 26.79 22.55 26.00 29.63 30.22 33.47 22.83 41.92 20.08 25.45 14.93 25.15 23.97 23.63 21.15 ADX 15.30 28.85 19.51 25.93 30.27 29.77 19.84 10.92 27.27 16.76 20.19 24.37 13.34 23.43 16.41 16.30 17.67 18.89 13.47 17.46 20.45 27.57 11.17 16.26 19.66 15.04 30.56 23.39 19.02 30.69 29.54 18.54 17.94 9.95 32.67 10.66 17.95 19.80 38.94 14.75 19.26 21.93 Diff (12.06) 14.61 (10.80) (8.43) (16.68) (25.34) 3.77 1.72 (10.19) 2.82 (10.82) (14.08) (2.73) (11.32) (1.35) 5.41 (12.22) (2.42) 11.49 (10.44) (5.75) (6.36) (0.70) (7.74) 0.65 (1.72) 15.14 (12.30) (6.37) (7.74) (16.55) (13.62) (15.53) (3.46) (26.51) (1.61) (1.26) 12.24 (13.18) (6.00) (4.86) (3.00) Line (1.22) 0.04 -0.02 -0.07 -0.05 -0.04 -0.02 0.01 -0.05 -0.01 -0.01 0.01 0.02 -0.03 0.06 0.00 -0.02 -0.01 0.03 -0.07 -0.06 -0.08 0.00 0.00 0.03 -0.01 0.02 -0.03 -0.03 -0.03 -0.01 -0.02 -0.01 -0.01 -0.02 0.00 0.02 0.02 -0.02 -0.01 -0.02 -0.02 MACD Signal 2.48 0.02 0.01 -0.06 -0.03 0.00 -0.03 0.01 -0.03 -0.01 0.00 0.02 0.01 -0.01 0.07 0.00 0.00 0.00 0.03 -0.06 -0.05 -0.08 0.00 0.00 0.05 -0.01 0.01 -0.03 -0.02 -0.03 -0.01 -0.01 -0.01 -0.02 -0.03 0.00 0.03 0.00 -0.02 -0.01 -0.02 -0.03 Diff (3.70) DMI MACD Recent Signal SELL SELL DMI MACD Signal Change - 0.02 (0.03) (0.00) (0.02) (0.04) 0.01 (0.00) (0.02) (0.00) (0.01) (0.01) 0.01 (0.02) (0.01) 0.00 (0.02) (0.01) 0.01 (0.01) (0.01) (0.00) (0.00) (0.00) (0.02) 0.00 0.01 0.00 (0.01) 0.00 (0.00) (0.01) (0.00) 0.00 0.00 (0.00) (0.01) 0.02 0.00 0.00 0.00 0.01 BUY SELL SELL SELL SELL BUY BUY SELL BUY SELL SELL SELL SELL SELL BUY SELL SELL BUY SELL SELL SELL SELL SELL BUY SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL BUY SELL SELL - BUY SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL BUY SELL SELL BUY SELL SELL BUY SELL SELL SELL SELL SELL SELL BUY BUY BUY SELL BUY SELL SELL SELL BUY BUY SELL SELL BUY BUY BUY BUY BUY SELL SELL BUY SELL SELL - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
22. 8-May-18 Technical Comments : Bargain FGV & UEM Sunrise Any sharp price weakness on FGV towards the low of 29/10/16 (RM1.52) would be a good buying opportunity for rebound upside towards the 38.2%FR (RM1.77), with stronger resistance coming from the 100-day ma (RM1.83) or the 38.2%FR (RM1.91). Similarly, further dip on UEM Sunrise would be attractive to buy for potential rebound towards the 38.2%FR (99sen), with next hurdle seen at the 50%FR (RM1.06) and 61.8%FR (RM1.13). Key support level is at the pivot low of 25/08/15 (75sen). FGV RM1.59 (-0.05) Z BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 1.92 1.75 1.58 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal SELL Signal Change Recent Signal SELL Signal Change UEMS SUNRISE RM0.89 (-0.01) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 0.97 0.92 0.87 10-day 30-day 50-day DMI Recent Signal Signal Change 1.68 1.73 1.77 SELL Recent Signal Signal Change RM RM RM DAILY MACD 0.90 0.94 0.97 BUY Page 2 of 4
23. 8-May-18 Daily Money Flow of Technical Stock Watch Malaysia Chartist : Stephen Soo No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 37 38 39 39 40 41 Tel: +603-2167 9607 www.taonline.com.my 27-Apr 30-Apr 2-May 3-May 4-May (A) Total 5D MF Prv. Chg FBMKLCI 9.4 9.9 (13.2) 41.7 11.9 59.7 54.8 (29.8) 1,863 1,870 1,852 1,852 1,842 (9.97) IN AFFIN ABMB AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA DIALOG DNEX ECO WORLD EKOVEST FGV GADANG HIAP TECK HIBISCUS KUB MALTON MUDAJAYA MRCB SAPURA ENERGY SUNCON UEMS UMWOG WASEONG WCT 0.0 (0.1) (0.1) 1.1 (3.9) 0.0 0.2 1.6 0.0 (0.7) 2.3 0.0 (0.7) 6.1 (0.1) (0.1) (0.8) (2.4) (0.1) 0.3 0.5 0.1 0.1 (1.6) (0.0) 0.0 (0.1) (0.4) 0.0 (0.0) (0.4) 0.0 0.1 0.0 (0.2) (0.1) (0.0) (0.0) 0.1 0.0 (0.0) 0.0 0.0 (1.7) 0.1 2.2 (0.0) (0.6) (1.1) 0.9 (0.5) (2.2) (0.1) (0.2) 2.5 (0.2) (0.1) (1.1) 19.3 0.3 (0.0) (0.3) (0.0) 0.1 (0.5) (0.1) 0.0 0.1 (0.4) 0.0 (0.0) (0.5) 0.0 (0.0) 0.0 (0.3) (0.2) 0.1 (0.1) 0.4 (0.0) (0.3) 0.0 (0.1) 0.8 (1.1) (1.3) (0.3) 0.3 (0.1) 6.2 0.2 (0.3) 0.0 (0.2) (9.5) 0.2 0.2 0.6 9.1 0.1 (0.1) 0.9 0.1 (0.2) (0.5) (0.1) (0.0) 0.0 0.7 0.1 (0.0) 0.0 0.0 0.0 (0.0) (0.4) (1.0) (0.1) 0.0 0.2 0.0 (0.1) 0.1 (0.0) (0.1) (0.1) 3.7 0.0 1.7 4.1 (0.8) (0.7) 0.3 (0.1) 0.0 15.0 (0.1) 0.8 0.0 12.6 0.1 (0.1) 0.3 0.0 (0.1) 2.1 0.0 (0.0) (0.1) 0.2 (0.0) (0.1) (0.0) 0.0 (0.0) 0.0 0.0 1.3 0.0 (0.1) 0.1 0.0 0.1 0.1 0.1 (0.2) (4.3) (0.6) (0.4) 0.3 (0.8) 1.7 0.1 (0.1) (0.0) (0.2) 5.0 (0.2) 0.3 (3.5) 15.3 (0.2) 0.1 2.1 (0.0) 0.2 0.0 (0.1) (0.0) (0.1) (0.2) 0.0 (0.0) (0.1) 0.0 (0.0) 0.0 (0.1) 0.2 (0.4) (0.0) 0.3 0.0 0.8 0.2 (0.1) (1.3) (4.2) 0.2 (0.7) 2.0 3.8 8.0 (1.6) 0.0 (0.1) (1.3) 19.0 (0.4) 1.1 (4.8) 53.8 0.2 0.1 3.5 0.1 0.1 (0.4) (0.3) (0.0) (0.3) (0.2) 0.1 (0.1) (1.0) 0.1 0.1 0.0 (1.0) 0.2 (0.4) (0.1) 0.9 0.0 0.6 0.1 0.1 (0.8) 1.0 5.0 0.3 1.4 4.2 (6.9) (1.0) 0.6 (0.1) 0.3 24.5 (0.3) 0.7 (0.5) 3.5 0.1 0.0 (0.6) (0.1) 0.2 2.6 0.2 0.0 (0.1) (0.5) (0.1) (0.1) (0.1) (0.0) (0.0) 0.0 0.4 2.2 0.1 (0.1) (0.2) (0.0) 0.2 (0.0) 0.1 (0.1) (4.2) (4.3) (0.4) (1.4) (4.9) 2.4 0.8 (0.4) 0.0 (0.3) (10.0) (0.0) (0.6) (3.6) 2.7 (0.3) 0.1 1.7 (0.0) 0.3 (2.1) (0.1) (0.0) (0.0) (0.4) 0.1 0.1 (0.0) (0.0) (0.0) (0.0) (0.1) (1.1) (0.4) 0.0 0.2 0.0 0.7 2.50 4.35 3.78 5.30 7.25 4.63 5.13 8.79 5.03 6.07 4.79 0.90 5.81 10.76 1.12 5.35 2.57 15.86 5.28 3.40 3.97 0.38 0.84 3.10 0.38 1.13 0.81 1.73 0.81 0.38 0.80 0.40 0.82 0.66 1.00 0.68 2.12 0.91 0.28 1.39 1.26 2.52 4.35 3.90 5.30 7.20 4.63 5.14 8.93 5.13 6.08 4.79 0.91 5.83 10.78 1.15 5.30 2.67 15.84 5.30 3.34 3.85 0.39 0.84 3.08 0.40 1.15 0.82 1.71 0.82 0.38 0.76 0.40 0.81 0.66 1.03 0.64 2.25 0.93 0.27 1.42 1.23 2.53 4.18 3.80 5.18 7.04 4.56 5.11 8.76 5.00 6.00 4.79 0.90 5.62 10.66 1.14 5.22 2.61 15.84 5.34 3.30 3.83 0.39 0.83 3.06 0.39 1.19 0.82 1.68 0.82 0.38 0.80 0.40 0.82 0.64 1.01 0.71 2.22 0.93 0.28 1.39 1.24 2.49 4.11 3.77 5.19 7.00 4.53 5.10 8.70 4.99 6.00 4.77 0.89 5.64 10.70 1.14 5.22 2.62 16.00 5.20 3.23 3.72 0.38 0.83 3.04 0.40 1.18 0.81 1.66 0.82 0.37 0.79 0.39 0.81 0.64 1.00 0.69 2.21 0.90 0.28 1.40 1.23 2.45 4.13 3.71 5.15 6.77 4.53 5.09 8.63 5.00 6.01 4.74 0.88 5.64 10.62 1.14 5.16 2.69 16.08 5.16 3.23 3.71 0.38 0.83 3.06 0.38 1.17 0.81 1.64 0.82 0.37 0.79 0.39 0.79 0.65 1.00 0.66 2.30 0.90 0.28 1.42 1.20 (0.04) 0.02 (0.06) (0.04) (0.23) 0.00 (0.01) (0.07) 0.01 0.01 (0.03) (0.01) 0.00 (0.08) 0.00 (0.06) 0.07 0.08 (0.04) 0.00 (0.01) (0.01) (0.01) 0.02 (0.02) (0.01) (0.01) (0.02) 0.00 0.00 0.01 (0.01) (0.02) 0.01 0.00 (0.03) 0.09 0.00 (0.01) 0.02 (0.03) IN IN OUT OUT IN OUT IN OUT OUT OUT IN OUT OUT IN OUT IN OUT IN OUT IN IN OUT IN IN IN IN OUT OUT OUT OUT OUT OUT OUT IN IN IN OUT OUT IN OUT IN Name Total Money Flow (RM'mn) stsoo@ta.com.my (B) Cur. Chg CLOSING PRICE 27-Apr 30-Apr 2-May 3-May 4-May Chg (A+B) DMF Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Page 3 of 4
24. 8-May-18 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Name FBMKLCI MAYBANK PBBANK TENAGA CIMB PCHEM IHH AXIATA MAXIS HLBANK SIME PLT DIGI NESTLE PETGAS GENTING MISC IOI CORP GENM KLK PETDAG HAP SENG HLFG PPB TM RHBBANK PMETAL SIME YTLCORP KLCCS AMBANK ASTRO (RM'mn) INF LOW OUTF LOW NET FLOW 27-Apr 9.4 6.1 1.2 (2.4) (3.9) (1.3) (0.7) 1.1 (0.7) (0.4) 0.2 0.0 8.1 0.2 1.6 0.2 2.3 0.0 (0.4) 0.0 (0.0) (0.1) (0.4) (0.1) (0.1) (0.3) (0.8) (0.0) 0.0 (0.1) (0.1) Tel: +603-2167 9607 Total Money Flow (RM'mn) 30-Apr 2-May 3-May 9.9 (13.2) 41.7 (9.5) 15.0 2.5 (6.4) (7.5) 1.5 19.3 9.1 12.6 2.2 (1.3) 3.7 0.9 (5.0) 1.4 (0.5) 0.1 (0.2) (1.0) (0.2) (0.0) 1.0 (0.8) (1.1) (1.2) (2.2) 0.9 0.5 (0.4) (0.2) (0.1) (0.2) 0.3 (0.1) (0.1) (1.1) (0.6) (0.2) (1.7) 0.3 0.2 (1.1) (0.2) (1.0) (0.2) (0.3) (1.0) (0.3) (0.1) 0.3 (0.3) 6.2 (2.8) (0.3) (0.1) 0.1 (0.3) 0.1 0.2 0.3 0.6 0.1 0.3 0.8 0.1 (0.7) (0.1) 0.0 (0.2) 0.1 0.0 0.6 (0.3) 4.1 0.5 0.3 (0.8) 2.2 0.1 0.2 (0.2) 0.5 0.1 0.8 0.1 0.0 (0.1) 0.1 (0.1) 0.2 4-May 11.9 5.0 0.4 15.3 (0.6) (0.9) 0.1 (4.3) (0.2) (0.1) 0.2 (0.4) (2.6) (0.2) (0.8) 2.2 (0.1) 1.7 (0.3) 0.3 0.3 0.2 0.1 (0.2) 0.3 0.1 (3.5) 0.1 0.1 (0.2) 0.0 Total 5D MF 59.7 19.0 (10.7) 53.8 0.2 (4.9) (1.6) (4.2) (1.3) (2.8) 0.1 (0.7) 6.0 (1.3) 3.8 2.0 0.0 8.0 (0.7) (0.2) 0.2 (0.1) (0.3) 0.2 1.1 0.1 (4.8) (0.5) 0.3 (1.3) 0.5 21.0 27.9 18.0 44.2 26.3 137.4 (11.7) 9.4 (17.9) 9.9 (31.2) (13.1) (2.5) 41.7 (14.4) 11.9 (77.6) 59.8 stsoo@ta.com.my (A) (B) Prv. Chg Cur. Chg 54.8 (29.8) 24.5 (10.0) 9.0 (1.1) 3.5 2.7 5.0 (4.3) 6.5 (2.3) (1.0) 0.8 1.0 (4.2) 0.3 (0.3) 0.8 0.1 0.3 0.1 0.3 (0.4) 1.6 (3.2) 0.0 0.1 4.2 (4.9) 0.3 1.7 0.6 (0.4) (6.9) 2.4 5.0 (2.4) 0.4 0.2 0.2 0.1 (0.3) 0.4 0.9 (0.4) 0.1 (0.3) 0.7 (0.6) (0.2) 0.0 (0.5) (3.6) (0.2) 0.2 (0.3) 0.0 (0.8) (0.1) 0.1 (0.2) 27-Apr 1,863 10.76 23.60 15.86 7.25 8.47 30-Apr 1,870 10.78 23.80 15.84 7.20 8.45 6.07 5.30 5.81 18.86 5.56 4.63 138.40 17.98 8.79 7.10 4.79 5.03 25.52 26.96 9.78 19.36 19.24 5.28 5.35 4.80 2.57 1.43 7.39 3.78 1.85 6.08 5.30 5.83 19.00 5.57 4.63 138.00 17.82 8.93 7.16 4.79 5.13 25.48 27.00 9.80 19.48 19.24 5.30 5.30 4.83 2.67 1.45 7.78 3.90 1.91 OUTFLOW 12 (18) 10 (20) 13 (17) 22 (8) CLOSING PRICE 2-May 3-May 1,852 1,852 10.66 10.70 24.00 23.94 15.84 16.00 7.04 7.00 8.41 8.46 6.00 5.18 5.62 18.84 5.49 4.56 133.10 18.20 8.76 7.03 4.79 5.00 25.42 26.74 9.70 19.04 19.08 5.34 5.22 4.80 2.61 1.41 7.49 3.80 1.83 6.00 5.19 5.64 18.66 5.51 4.53 135.90 17.78 8.70 7.05 4.77 4.99 25.46 26.86 9.70 19.00 19.10 5.20 5.22 4.84 2.62 1.38 7.62 3.77 1.84 4-May 1,842 10.62 23.80 16.08 6.77 8.45 6.01 5.15 5.64 18.60 5.49 4.53 135.80 17.76 8.63 7.12 4.74 5.00 25.50 26.80 9.70 18.82 19.10 5.16 5.16 4.76 2.69 1.35 7.53 3.71 1.80 Chg (9.97) (0.08) (0.14) 0.08 (0.23) (0.01) 0.01 (0.04) 0.00 (0.06) (0.02) 0.00 (0.10) (0.02) (0.07) 0.07 (0.03) 0.01 0.04 (0.06) 0.00 (0.18) 0.00 (0.04) (0.06) (0.08) 0.07 (0.03) (0.09) (0.06) (0.04) (A+B) DMF IN IN IN IN IN IN OUT OUT OUT IN IN OUT OUT IN OUT IN IN OUT IN IN IN IN IN OUT IN OUT OUT OUT OUT OUT OUT Daily Trading Participation COMPANIES INFLOW www.taonline.com.my 16 (14) Date Retail Ins titution Foreign Total 27-Apr 16.0% 51.0% 33.0% 100% 30-Apr 2-Ma y 3-Ma y 4-Ma y 18.1% 15.3% 15.0% 15.3% 50.1% 52.6% 55.7% 57.7% 31.8% 32.1% 29.3% 27.0% 100% 100% 100% 100% Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, May 08, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
25. Technical View Tuesday , May 08, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Stock Screen Malaysia End Day Census of 07.05.2018 Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas. The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/ SELL) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name FRASER & NEAVE HOLDINGS BHD FAR EAST HOLDINGS BHD SAM ENGINEERING & EQUIPMENT KLCCP STAPLED GROUP SERBA DINAMIK HOLDINGS BHD SUPERMAX CORP BHD TASCO BHD IMASPRO CORP BHD NEW HOONG FATT HOLDINGS BHD ENCORP BHD PMB TECHNOLOGY BHD MAGNA PRIMA BHD TRANSOCEAN HOLDINGS BHD METROD HOLDINGS BHD UOA DEVELOPMENT BHD MUHIBBAH ENGINEERING (M) BHD YINSON HOLDINGS BHD UZMA BHD WILLOWGLEN MSC BHD ORIENTAL HOLDINGS BERHAD HONG LEONG INDUSTRIES BHD ECO WORLD DEVELOPMENT GROUP INNOPRISE PLANTATIONS BHD UMS-NEIKEN GROUP BHD N2N CONNECT BHD HIL INDUSTRIES BERHAD TENAGA NASIONAL BHD KIA LIM BERHAD SENI J AYA CORPORATION BHD WATTA HOLDING BHD Price 34.76 11.10 6.70 7.48 3.38 2.90 1.82 2.09 3.40 0.68 2.44 1.15 0.62 1.71 2.53 2.99 4.10 1.40 1.15 6.26 11.20 1.15 0.86 0.99 1.00 0.75 16.00 0.34 0.66 0.30 Bollinger Band Lower Middle Upper 31.93 34.33 36.72 8.58 10.26 11.95 6.07 6.53 6.98 6.95 7.32 7.69 3.12 3.34 3.56 2.53 2.79 3.06 1.56 1.77 1.97 1.76 1.99 2.22 3.22 3.37 3.52 0.45 0.61 0.78 1.87 2.20 2.54 1.02 1.13 1.24 0.45 0.58 0.70 1.59 1.69 1.79 2.31 2.46 2.60 2.84 2.95 3.06 3.89 4.03 4.17 1.24 1.35 1.47 1.06 1.13 1.21 6.17 6.24 6.32 10.67 10.96 11.25 1.04 1.12 1.20 0.77 0.84 0.91 0.83 0.93 1.03 0.78 0.91 1.04 0.64 0.71 0.79 15.78 15.91 16.04 0.26 0.32 0.37 0.58 0.64 0.69 0.24 0.29 0.33 RSI 14-day 58.90 72.10 56.28 54.07 52.37 57.96 51.57 82.00 53.06 60.77 66.73 50.02 52.08 51.12 55.71 54.03 57.74 52.76 52.20 50.93 60.10 57.17 51.93 52.62 64.64 53.60 57.19 52.93 51.54 50.85 5-day 35.67 11.04 6.84 7.56 3.36 2.92 1.84 2.10 3.45 0.70 2.41 1.10 0.53 1.68 2.54 2.96 4.01 1.36 1.14 6.26 11.04 1.16 0.87 0.93 1.00 0.73 15.92 0.33 0.63 0.30 Moving Average 10-day 30-day 35.40 33.88 10.95 9.81 6.65 6.43 7.38 7.20 3.34 3.31 2.87 2.69 1.84 1.77 2.09 1.94 3.43 3.34 0.69 0.58 2.30 2.12 1.12 1.17 0.56 0.61 1.67 1.69 2.50 2.44 2.94 2.92 3.99 3.96 1.38 1.40 1.14 1.12 6.24 6.23 10.94 10.91 1.14 1.08 0.86 0.83 0.91 0.97 0.95 0.86 0.73 0.71 15.90 15.90 0.31 0.32 0.63 0.65 0.28 0.29 50-day 32.84 9.42 6.60 7.38 3.37 2.68 1.83 1.89 3.33 0.60 2.12 1.20 0.60 1.73 2.48 2.97 4.01 1.40 1.15 6.30 11.00 1.12 0.85 1.03 0.88 0.74 15.81 0.35 0.68 0.31 Vol 1,430,400 15,400 30,000 338,000 5,199,600 3,407,600 14,200 360,000 3,700 96,900 355,900 35,500 12,200 1,000 477,200 4,941,000 865,100 725,000 182,900 152,600 46,200 746,800 33,500 8,000 5,572,200 48,600 18,355,700 21,000 5,000 41,400 20-day avg vol 616,560 6,150 22,320 316,950 3,608,605 3,967,930 7,770 151,450 3,350 70,155 184,120 7,775 1,615 200 461,280 1,065,845 564,755 287,465 75,170 161,750 35,955 910,785 37,740 1,645 2,967,930 22,925 10,970,110 4,150 600 3,795 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. *Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy breakout trades. Page 1 of 2
26. [UPPER BOLLINGER BREAKOUT] Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/ SELL guide) No Stock Name Bollinger Band Price 1 DEGEM BHD 2 OPCOM HOLDINGS BHD 3 WIDETECH (MALAYSIA) BHD 4 SHIN YANG SHIPPING CORP BHD 5 ENG KAH CORP BHD 6 SEALINK INTERNATIONAL BHD 7 GPA HOLDINGS BHD 8 SILVER RIDGE HOLDINGS BHD 9 TIGER SYNERGY BHD 10 INCH KENNETH KAJ ANG RUBBER 11 COMPUGATES HOLDINGS BHD 12 EWEIN BHD 13 J ASA KITA BHD 14 LCTH CORP BHD 15 YTL LAND & DEVELOPMENT BHD 16 GUNUNG CAPITAL BHD 17 GSB GROUP BHD 18 GREENYIELD BHD 19 MNC WIRELESS BHD 20 PEGASUS HEIGHTS BHD Raw data sourced from Bloomberg Lower 0.93 0.31 0.52 0.23 0.98 0.13 0.09 0.20 0.02 0.68 0.02 0.31 0.13 0.57 0.46 0.35 0.09 0.16 0.06 0.03 1.10 0.45 0.63 0.27 1.39 0.15 0.09 0.24 0.03 0.69 0.03 0.36 0.14 0.58 0.48 0.40 0.11 0.18 0.07 0.04 Middle 1.00 0.37 0.57 0.25 1.18 0.14 0.09 0.22 0.03 0.69 0.03 0.33 0.13 0.57 0.47 0.38 0.10 0.17 0.06 0.03 Upper 1.07 0.43 0.62 0.27 1.39 0.15 0.09 0.24 0.03 0.69 0.03 0.36 0.14 0.58 0.48 0.40 0.11 0.18 0.07 0.04 RSI 14-day 65.07 64.24 61.60 61.81 66.43 57.31 44.07 60.22 53.48 50.68 57.31 57.63 58.35 55.52 51.98 57.11 55.32 52.89 47.56 50.46 Moving Average 5-day 1.03 0.40 0.58 0.25 1.24 0.14 0.09 0.22 0.03 0.69 0.03 0.35 0.14 0.57 0.47 0.36 0.10 0.17 0.06 0.03 10-day 1.02 0.38 0.57 0.25 1.15 0.14 0.09 0.22 0.03 0.69 0.03 0.34 0.14 0.57 0.47 0.37 0.10 0.17 0.06 0.03 30-day 1.00 0.36 0.55 0.25 1.23 0.14 0.09 0.22 0.03 0.69 0.03 0.34 0.13 0.57 0.47 0.38 0.10 0.17 0.07 0.03 50-day 0.99 0.38 0.51 0.24 1.29 0.14 0.09 0.22 0.03 0.69 0.03 0.35 0.13 0.57 0.48 0.38 0.10 0.18 0.07 0.04 Vol 100 2,130,200 19,200 3,742,800 200 10,100 120,000 6,216,600 3,144,600 10,500 6,496,200 673,000 132,000 929,100 101,000 41,000 1,461,000 140,200 1,061,000 575,000 20-day avg vol 3,250 876,265 2,166,080 85 36,345 329,635 5,020,565 7,203,215 48,745 1,821,115 153,515 161,870 587,785 133,345 14,600 220,930 35,385 415,575 690,895 *Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 S tock Na me Price CARLSBERG BREWERY MALAYS IA B HONG LEONG FINANCIAL GROUP CIMB GROUP HOLDINGS BHD S UIWAH CORP BHD WES TPORTS HOLDINGS BHD ANN J OO RESOURCES BHD PANS AR BHD TELEKOM MALAYS IA BHD GENTING BHD LBI CAPITAL BHD RHB BANK BHD PIE INDUS TRIAL BHD MAXIS BHD FAJ ARBARU BUILDER GROUP BHD BERJ AYA FOOD BHD BARAKAH OFFS HORE PETROLEUM CB INDUS TRIAL PRODUCT HLDG J AKS RESOURCES BHD J F TECHNOLOGY BHD YTL CORP BHD 17.88 18.56 6.67 2.02 3.10 2.71 0.91 5.00 8.50 0.85 5.09 1.27 5.58 0.59 1.60 0.16 1.42 1.37 0.60 1.33 Bollinger Band Lower Middle Upper 18.13 19.05 19.97 18.72 19.25 19.77 6.80 7.14 7.48 2.10 2.22 2.33 3.17 3.36 3.54 2.78 3.00 3.22 0.96 1.20 1.43 5.05 5.37 5.69 8.55 8.86 9.17 0.89 0.98 1.06 5.12 5.30 5.47 1.30 1.40 1.50 5.61 5.79 5.97 0.61 0.68 0.74 1.62 1.70 1.78 0.18 0.24 0.30 1.44 1.50 1.55 1.39 1.44 1.48 0.62 0.72 0.81 1.35 1.42 1.50 RS I 14-da y 33.12 36.37 24.67 22.34 28.35 28.21 23.47 35.23 36.33 29.56 35.54 26.01 36.08 20.53 34.23 17.70 31.18 39.65 29.80 37.43 5-da y 18.90 19.14 7.05 2.18 3.30 2.92 1.09 5.26 8.76 0.94 5.25 1.36 5.71 0.65 1.66 0.22 1.48 1.44 0.68 1.40 Moving Avera ge 10-da y 30-da y 19.07 19.00 19.31 19.16 7.14 7.16 2.21 2.30 3.34 3.42 2.95 3.02 1.17 1.19 5.28 5.33 8.77 8.85 0.97 1.02 5.29 5.28 1.39 1.41 5.77 5.76 0.67 0.69 1.70 1.72 0.23 0.25 1.48 1.51 1.44 1.44 0.70 0.76 1.42 1.41 50-da y 19.05 19.08 7.18 2.41 3.49 3.20 1.08 5.48 8.88 1.04 5.31 1.47 5.80 0.72 1.75 0.25 1.55 1.50 0.83 1.42 Vol 91,100 142,900 21,787,800 7,900 2,347,900 808,000 638,100 5,446,300 2,432,400 15,000 1,900,800 1,442,400 2,350,000 1,226,000 100,400 6,683,400 95,800 2,078,600 24,800 5,065,300 20-day a vg vol 101, 210 156, 390 13,635, 230 1, 760 1,279, 080 702, 580 2,606, 625 1,848, 815 2,515, 390 10, 575 1,333, 815 495, 790 1,500, 265 307, 495 44, 470 2,101, 660 75, 335 1,699, 610 63, 840 4,115, 275 Raw data sourced from Bloomberg S Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, May 08, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 2