Bursa Malaysia Daily Market Report - 11 July

Transcription

1. Tuesday , 11 July, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Gadang Holdings Bhd: Disposing Plantation Business 2. Plantation Sector: Stockpile Decline but Within Expectation Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) 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. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Tuesday, 11 July 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (10.07.2017) (mil) Main Market 1,098.0 Warrants 117.9 ACE Market 416.2 Bond 34.9 ETF 0.0 Total 1,667.1 Off Market 41.0 Volume +/-chg (RMmn) 195.0 1,414.2 3.5 14.7 155.7 78.5 5.0 7.6 0.00 0.0 1,515.1 -17.5 21.0 Value +/-chg -52.3 2.1 18.2 0.1 0.00 -172.4 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP July 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 1,757.13 12,520.93 17,327.49 1,762.00 21,408.52 6,176.39 7,370.03 20,080.98 2,382.10 25,500.06 3,246.35 1,569.44 5,771.51 3,212.63 1,905.37 5,724.44 Off Market APPASIA SMRT-WA VERSATL MASTEEL BJASSET MEDAINC (mn) 12.7 11.2 5.0 4.9 1.5 1.4 @ @ @ @ @ @ (RM) 0.25 0.01 0.95 0.96 1.30 0.31 Exchange Rate USD/MYR 4.2954 -0.0029 USD/JPY 114.22 0.5200 EUR/USD 1.139 -0.0020 -2.80 -29.84 -50.64 3.00 Value/ Volume 1.29 0.13 0.19 0.22 1.11 0.91 0.51 Up Down 216 412 26 91 51 46 0 6 1 1 294 556 % chg % YTD chg -0.16 -0.24 -0.29 0.17 7.03 9.20 17.75 7.73 -5.82 -0.03 23.31 0.38 19.11 0.26 151.89 0.76 2.23 0.09 159.21 0.63 17.34 0.54 0.00 0.00 -43.29 -0.74 -5.32 -0.17 -12.76 -0.67 20.87 0.37 Top 10 KLCI Movers Mkt Cap. Counter Mkt Cap. (RM’mn) MAYBANK 101,342 IHH 59,110 CIMB 55,120 MAXIS 42,088 DIGI 38,720 GENTING 34,219 GENM 31,800 TM 24,389 PETDAG 23,724 HAPSENG 22,407 8.33 14.74 3.18 5.06 17.55 15.91 12.69 1.72 8.96 3.51 -3.24 1.03 Based on Chg Vol. (RM) (mn) -0.01 7.95 -0.02 12.32 -0.20 5.31 -0.01 5.43 -0.02 4.12 -0.16 3.60 -0.05 4.24 -0.07 2.27 -0.04 0.12 -0.09 0.23 Commodities Futures Palm Oil (RM/mt) 2,566.00 37.00 Crude Oil ($/Barrel) 44.55 0.22 Gold ($/tr.oz.) 1,213.70 1.80 Important Dates TDM - 1:10 Bonus Issue - BI of 150.5m shares. 1 bonus share for every 10 existing shares. Entitlement Date: 03/07/2017. LISTING ON: 04/07/2017. SCC - 1:10 Bonus Issue - BI of 4.3m shares. 1 bonus share for every 10 existing shares. Ex-Date: 06/07/2017. Entitlement Date: 10/07/2017. LISTING ON: 11/07/2017. Review & Outlook The local benchmark index hovered near three-month lows on Monday, as profit-taking interest amid weak technical momentum overshadowed regional strength helped by robust US jobs numbers and tame June inflation data from China. The KLCI fell 2.8 points to settle at 1,757.13, after ranging between early high of 1,760.44 and low of 1,754.57, as losers beat gainers 556 to 294 on moderate turnover of 1.66bn shares worth RM1.51bn. Further correction is needed for the index to lessen current bearish momentum, before an oversold recovery can follow. Immediate support remains at the 100-day moving average at 1,751, with stronger support at 1,729, a key support level in April, while crucial uptrend support is from the 200-day moving average at 1,703. Immediate resistance for the index stays at the 50-day moving average (1,773), next 1,782, followed by the recent peak of 1,796, and then the 1,800 psychological level. Bearish technical momentum on DiGi.com shares point to profit-taking correction potential towards the 61.8%FR (RM4.85), with stronger retracement supports seen from the 50%FR (RM4.75) and 38.2%FR (RM4.65), while strong overhead resistance is from the 30/3/17 high (RM5.19). Likewise, TM should slip into profit-taking correction mode, with better retracement supports from the 50%FR (RM6.36) and 38.2%FR (RM6.23), and key overhead hurdle from the 30/8/16 peak (RM6.90). • • • • • • • • • • • • • • • • • • News Bites The growth in palm oil stockpiles narrowed by 1.9% MoM to 1.53mn tonnes in June 2017 as MPOB's monthly production declined 8.5% MoM and 1.2% YoY to 1.51mn tonnes, which was below expectations of 1.62 - 1.64mn tonnes. Three companies have filed claims amounting to QAR181.6mn (RM214.1mn) from WCT Holdings Bhd over payment for a government project in Doha, Qatar where it was the main contractor. Genting Bhd's subsidiary Genting Oil Kasuri Pte Ltd has reportedly been asked by Indonesia's upstream regulatory body SKKMigas to revise its development plan for the Kasuri Block in West Papua. Malaysia Airports Holdings Bhd's network of airports, including Istanbul Sabiha Gokcen International Airport, recorded 10.2mn passengers in June 2017, an 11.9% YoY growth over the same month of 2016. Gadang Holdings Bhd has proposed to sell off its entire stake in indirect wholly-owned plantation unit, Desiran Impian Sdn Bhd, for RM15.0mn. Enra Group Bhd's 60%-owned subsidiary, ENRA SPM Sdn Bhd has bagged a USD48mn contract from PC Myanmar (Hong Kong) Ltd, a subsidiary of PETRONAS, for the lease of a single point mooring system and storage tanker. Advancecon Holdings Bhd has bagged a RM30.1mn contract from LM Partners Sdn Bhd for civil works at the proposed Pan Borneo Highway in Sarawak. Halex Holdings Bhd has proposed to acquire a 334-square-metre freehold land with a six-storey shop office in Klang for RM6.9mn. Perisai Petroleum Teknologi Bhd has obtained extension of time of up to 31 July 2017 to submit a draft circular, in relation to the proposed settlement agreement between the company and EOC Ltd (now known as Emas Offshore Ltd), to Bursa Malaysia Securities Bhd. Versatile Creative Bhd's due diligence for the development of mediumcost apartments, with a gross development value of RM110.0mn in Johor Bahru has been put on hold to relook into the land conversion cost payment proposal. LPI Capital Bhd's 2QFY17 revenue grew by 4.0% YoY to RM352.7mn but PBT declined by 61.6% YoY to RM89.2mn mainly due to the nonrecurring realised gains of RM150.4mn on disposal of investment in quoted equities in 2QFY16. Samling Group founder Tan Sri Dr Yaw Teck Seng has emerged as the second largest shareholder of Barakah Offshore Petroleum Bhd, having acquired a further 5.9% stake through United Power Group Holdings Ltd. The independent adviser of KUB Malaysia Bhd has advised shareholders to reject the takeover offer of RM0.35 per share from Anchorscape Sdn Bhd. The independent adviser of Wang-Zheng Bhd has advised minority shareholders to reject the takeover offer of RM1.14 per share from Hong Kong-listed Hengan International Group Co Ltd. 7-Eleven Malaysia Holdings Bhd's chief executive officer Gary Thomas Brown has stepped down from his role in the group, citing "personal reasons". Destini Bhd group managing director Datuk Rozabil @ Rozamujib Abdul Rahman and Caprice Capital International Ltd chief executive Datuk Paul Poh Yang Hong have been appointed non-executive directors of Iris Corp Bhd. According to Dun & Bradstreet's Malaysia's Business Optimism Index study, the overall index inched up slightly from 3.07 percentage points in the second quarter to 3.40 percentage points in 3Q17. China's Consumer Price Index rose 1.5% YoY in June while the Producer Price Index rose 5.5%, according to the National Bureau of Statistics. 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. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
3. TA Securities Tuesday , July 11, 2017 FBMKLCI: 1,757.13 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Market View Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my Further Correction Needed to Lessen Bearish Momentum The local benchmark index hovered near three-month lows on Monday, as profit-taking interest amid weak technical momentum overshadowed regional strength helped by robust US jobs numbers and tame June inflation data from China. The KLCI fell 2.8 points to settle at 1,757.13, after ranging between early high of 1,760.44 and low of 1,754.57, as losers beat gainers 556 to 294 on moderate turnover of 1.66bn shares worth RM1.51bn. Key Supports at 1,751/1,729 Further correction is needed for the index to lessen current bearish momentum, before an oversold recovery can follow. Immediate support remains at the 100-day moving average at 1,751, with stronger support at 1,729, a key support level in April, while crucial uptrend support is from the 200-day moving average at 1,703. Immediate resistance for the index stays at the 50-day moving average (1,773), next 1,782, followed by the recent peak of 1,796, and then the 1,800 psychological level. Take Profit DiGi.com & TM Bearish technical momentum on DiGi.com shares point to profit-taking correction potential towards the 61.8%FR (RM4.85), with stronger retracement supports seen from the 50%FR (RM4.75) and 38.2%FR (RM4.65), while strong overhead resistance is from the 30/3/17 high (RM5.19). Likewise, TM should slip into profit-taking correction mode, with better retracement supports from the 50%FR (RM6.36) and 38.2%FR (RM6.23), and key overhead hurdle from the 30/8/16 peak (RM6.90). Asian Markets Higher on U.S Jobs Data Asian stock markets traded mostly higher on Monday buoyed by Friday’s gains in the U.S after solid jobs data and as Chinese inflation data for June were in line with expectations. The China consumer price index gained 1.5 percent year-on-year, while the producer price index rose 5.5 percent. Meanwhile, the Group of 20 meeting of world leaders made little impact on markets, as there was less discord than expected. The Nikkei shares average rose 0.76 percent to 20,080.98, while Korean Kospi ended 0.09 percent higher to close at 2,382.10. In down under, the benchmark ASX200 ended higher by 0.36 percent to close at 5,724.40 led by advances in the financials and information technology sub-indexes. Markets in China were little changed as investors awaited fresh catalysts ahead of a burst of data due over the next week. China will release second-quarter gross domestic product on July 17, along with June industrial output, retail sales and January-June fixed asset investment. The blue-chip CSI300 index fell 0.06 percent to 3,653.69 points, while the Shanghai Composite Index lost 0.17 percent to 3,212.63 points. Nasdaq and S&P 500 Higher on Tech Shares U.S stocks traded mostly higher on Monday led by gains in tech stocks as investors got ready for the start of the latest earnings session. The S&P 500 technology index was up 0.8 percent, followed by a 0.6 percent gain in the materials index. Amazon stock climbed 1.8 percent ahead of its popular Prime Day shopping festival, while Apple added 0.6 percent amid Page 1 of 6
4. TA Securities 11-Jul-17 A Member of the TA Group speculation its next iPhone could cost more than USD1 ,200. Earnings season will kick off on Friday when JPMorgan, Citigroup and Wells Fargo all release their quarterly results. S&P 500 earnings are forecast to be up 7.9 percent in the second quarter compared with a year ago. Meanwhile, Fed Chair Janet Yellen's semi-annual testimony may be the highlight this week for investors looking for cues on further interest rate hikes. She will testify on Wednesday and Thursday. The Dow Jones Industrial Average fell 5.82 points, or 0.03 percent, to 21,408.52, the S&P 500 rose 2.25 points to 2,427.43 and the Nasdaq Composite gained 23.31 points, or 0.38 percent, to 6,176.39. Page 2 of 6
5. TA Securities 11-Jul-17 A Member of the TA Group News In Brief Corporate Genting Bhd 's subsidiary Genting Oil Kasuri Pte Ltd has reportedly been asked by Indonesia’s upstream regulatory body SKKMigas to revise its development plan for the Kasuri Block in West Papua. (The Edge) Malaysia Airports Holdings Bhd's (MAHB) network of airports, including Istanbul Sabiha Gokcen International Airport (ISG), recorded 10.2mn passengers in June 2017, a 11.9% YoY growth over the same month of 2016. The overall increase in passengers in June was supported by growth in airline seats and an improvement in average load factors following the long weekend of Hari Raya Aidilfitri at the end-June. For 1H17, passenger traffic in Malaysian airports grew by 5.8% YoY while that in ISG declined by -6.7% YoY (Bursa Malaysia/Bernama) Comment: The 5.8% YoY growth seen in Malaysian airports and -6.7% YoY in ISG operations for 1H17 was in line with our expectations. As such, we maintain our passenger traffic growth assumptions of 6.7% (management forecast: 6.5%) for Malaysian operations and 7.2% for ISG, in line with management guidance. Maintain MAHB as SELL with an unchanged target price of RM8.10 per share. LPI Capital Bhd’s 2QFY17 revenue grew by 4.0% YoY to RM352.7mn but PBT declined by 61.6% YoY to RM89.2mn mainly due to the non-recurring realised gains of RM150.4mn on disposal of investment in quoted equities in 2QFY16 from the investment holding segment. A first interim dividend of 27.0sen per share was declared. (Bursa Malaysia) Three companies (Trans Gulf International Electro-Mechanical WLL, Powermech Engineering WLL, and the joint venture of Trans Gulf International Electro-Mechanical WLL–Powermech Engineering WLL JV) have filed claims amounting to QAR181.6mn (RM214.1mn) from WCT Holdings Bhd (WCT) over payment for a government project in Doha, Qatar where it was the main contractor. The claimants were WCT’s subcontractor under a subcontract in respect of certain mechanical, electrical, and plumbing related works for the Ministry of Interior Head Quarters Project in Doha, Qatar. (Bursa Malaysia/The Star) Comment: The claimant is claiming RM214.1mn, being alleged sums due pursuant to and under the subcontract and further unquantified sums for legal costs, arbitration costs, and charges. Limited details were disclosed in the announcement. While it may take some to conclude the dispute, the negative development is expected to affect to a certain extent, the sentiment on the stock as the amount claimed is substantial and exceeds our FY17 to FY19 net profit forecasts of between RM137.5mn and RM161.9mn. Maintain our SELL call on the stock with an unchanged TP of RM1.49 per share. 7-Eleven Malaysia Holdings Bhd’s chief executive officer (CEO) Gary Thomas Brown has stepped down from his role in the group, citing “personal reasons”. Non-executive director Ho Meng will assume the role of CEO effective 1 August 2017. (The Edge) Gadang Holdings Bhd has proposed to sell off its entire stake in indirect wholly-owned plantation unit, Desiran Impian Sdn Bhd, for RM15.0mn. The proposed disposal is undertaken to dispose the group’s non-core and lossmaking subsidiary. (Bursa Malaysia) Samling Group founder Tan Sri Dr Yaw Teck Seng has emerged as the second largest shareholder of Barakah Offshore Petroleum Bhd, having acquired a further 5.9% stake through United Power Group Holdings Ltd. (The Star) Destini Bhd group managing director Datuk Rozabil @ Rozamujib Abdul Rahman and Caprice Capital International Ltd chief executive Datuk Paul Poh Yang Hong have been appointed non-executive directors of Iris Corp Bhd. (The Star) Page 3 of 6
6. TA Securities 11-Jul-17 A Member of the TA Group Enra Group Bhd ’s 60%-owned subsidiary, ENRA SPM Sdn Bhd has bagged a USD48mn contract from PC Myanmar (Hong Kong) Ltd (PCML), a subsidiary of PETRONAS, for the lease of a single point mooring system and storage tanker (facilities) to PCML. The facilities will provide condensate storing and offloading services for the Yetagun offshore gas field operated by PCML in the Andaman Sea off the coast of Myanmar. The contract is for a 4year primary period and is estimated to commence upon the facilities being commissioned and delivered to PCML. (Bursa Malaysia) The independent adviser of KUB Malaysia Bhd has advised shareholders to reject the takeover offer of RM0.35 per share from Anchorscape Sdn Bhd. (Bursa Malaysia) Advancecon Holdings Bhd has bagged a RM30.1mn contract from LM Partners Sdn Bhd for scope of works comprising of site clearing, earthworks, excavation in unsuitable materials, sand filling and surface drainage works for part of the proposed Pan Borneo Highway in Sarawak. (Bursa Malaysia) The independent adviser of Wang-Zheng Bhd has advised minority shareholders to reject the takeover offer of RM1.14 per share from Hong Kong-listed Hengan International Group Co Ltd. (The Star) Halex Holdings Bhd has proposed to acquire a 334-square-metre freehold land with a sixstorey shop office in Klang for RM6.9mn. The group’s new management opines that since the holding company’s core operations are centred in Klang, the proposed acquisition will consolidate and increase operations efficiency of the group as a whole. (Bursa Malaysia) Perisai Petroleum Teknologi Bhd (Perisai) has obtained extension of time of up to 31 July 2017 to submit a draft circular to Bursa Malaysia Securities Bhd. The draft circular is in relation to the proposed settlement agreement in respect of the disputes arising from or in connection with the share sale agreement (SSA) dated 30 November 2012 between Perisai and EOC Ltd (now known as Emas Offshore Ltd) and/or the put option rights of Perisai under the SSA. (Bursa Malaysia) Versatile Creative Bhd announced that the due diligence for the development of mediumcost apartments, with a gross development value of RM110.0mn in Johor Bahru has been put on hold as it was requested by Double Action Ventures Sdn Bhd to relook into the land conversion cost payment proposal within the deadline of 2 months. (Bursa Malaysia) Page 4 of 6
7. TA Securities 11-Jul-17 A Member of the TA Group News In Brief Economy Global CLI Continue to Point to Stable Pace of Expansion in the OECD Area Composite leading indicators (CLIs), designed to anticipate turning points in economic activity relative to trend six to nine months ahead, continue to point to a stable pace of expansion in the OECD area with the index stood at 100.0 in May. Stable growth momentum remains the assessment for Japan (99.6), Canada (100.49) and for the euro area (100.44) as a whole. However, in the US, the UK and Italy tentative signs are emerging that growth may be easing. The CLI for Germany continues to point to growth gaining momentum, which is now also the assessment for France. Amongst major emerging economies, the CLI for Brazil continues to signal growth gaining momentum with similar signs now emerging in China. In India, the CLI points to stable growth momentum, while tentative signs of easing growth are emerging in Russia. (OECD) Asia Malaysian Businesses Bullish on Q3 Outlook Business confidence in Malaysia has remained marginally optimistic for the third quarter Q3. According to Dun & Bradstreet’s (D&B) Malaysia’s Business Optimism Index (BOI) study, overall BOI inched up slightly from 3.07 percentage points in the second quarter to 3.40 percentage points in Q3. On a YoY basis, BOI eased from 4.42 percentage points in Q3 2016 to 3.40 percentage points in Q3 2017. For Q3 2017, three of six indicators have moderated upwards on a QoQ basis. On a YoY basis, three of six business indicators have improved. The services, transportation and agricultural sectors were most upbeat for Q3, with three of five indicators in the positive region. Meanwhile, the mining sector has remained downbeat, with three indicators in the negative region. (New Straits Times) Chinese Inflation Data Matches Expectations: CPI up 1.5%, PPI up 5.5% Chinese inflation data for June came in line with expectations on a year-over-year basis. Those figures are closely watched by investors for what they say about the strength of the Chinese economy. China's Consumer Price Index rose 1.5% year-on-year in June, according to the National Bureau of Statistics. The Producer Price Index, meanwhile, rose 5.5% against the same time last year. Both of those figures matched analyst forecasts. June CPI and PPI both fell 0.2% from May, the bureau said. Strong infrastructure investment in the first five months of the year, however, will help China secure its target 6.5% growth rate in 2017, Wang added. Despite broad-based concerns about international trade, China faces greater economic risks internally. Beijing is targeting consumer inflation at 3% this year, unchanged from 2016. (CNBC) Japan Core Machine Orders Slide 3.6% in May Core machine orders in Japan skidded a seasonally adjusted 3.6% on month in May, the Cabinet Office said on Monday - coming in at 805.5 billion yen. That missed forecasts for an increase of 1.7% following the 3.1% decline in April. On a yearly basis, core machine orders added just 0.6% - well shy of expectations for a jump of 7.6% following the 2.7% gain in the previous month. The total value of machine orders, which includes volatile ones for ships and electric power companies, fell 3.1% on month and gained 8.2% on year to 2,224.6 billion yen. Manufacturing orders gained 1.0% on month and 6.3% on year to 365.6 billion yen in April, while non-manufacturing orders dropped 5.1% on month and 4.0% on year to 447.3 billion yen. Other news in Japan: • Japan posted a current account surplus of 1,653.9 billion yen in May that missed forecasts for 1,792.8 billion yen following the 1,951.9 billion yen surplus in April. The trade balance showed a deficit of 115.1 billion yen, missing expectations for a shortfall of 45.0 billion yen and down from the 553.6 billion yen surplus in the previous month. Page 5 of 6
8. TA Securities 11-Jul-17 A Member of the TA Group • Europe and United Kingdom A measure of peoples' assessment of the Japanese economy increased more-thanexpected in June to the highest level in six months. The current index of Economy Watchers' survey rose to 50.0 in June from 48.6 in May. The outlook index also improved to 50.5 in June from 49.6 in the prior month. It was forecast to rise to 50.3. (RTT News) Germany's Exports Rise More than Forecast Germany's exports and imports grew more than expected in May, data from Destatis revealed. Exports grew 1.4% MoM in May, faster than the 0.9% increase seen in April. Shipments were expected to gain only 0.3%. At the same time, monthly growth in imports held steady at 1.2%, faster than the expected increase of 0.3%. As a result, the trade surplus rose to EUR 20.3 billion in May from EUR 19.7 billion a month ago. On a yearly basis, exports surged 14.1%, in contrast to a 2.9% fall in April. Imports growth accelerated to 16.2% from 5.4%. The current account of the balance of payments showed a surplus of EUR 17.3 billion versus EUR 17.9 billion in the same period of previous year. (RTT News) Big UK Firms Curtail Investment Plans, Consumer Slowdown Deepens - surveys The chances of Britain's economy picking up steam diminished further as surveys showed major companies have curtailed their investment plans and that consumers spent less on their credit cards. The reports added to a string of lacklustre economic data that has raised questions about the chances of the Bank of England raising interest rates this year. Accountancy firm Deloitte said business optimism at large British companies fell sharply in the second quarter, dampened by the inconclusive outcome of last month's national election. Deloitte's survey of chief financial officers showed 72% thought the overall business environment would be worse once Britain leaves the European Union, the largest proportion since Deloitte started asking the question a year ago. Only 8% of respondents saw an improvement after Brexit. The survey's findings have proven a good predictor for the BoE's own investment intentions survey which BoE officials watch closely as part of their monitoring of Britain's economy. Businesses are pressing May and her government to negotiate a smooth Brexit in two years' time, saying an abrupt departure would deter investment. (Reuters) Share Buy-Back: 10 July 2017 Company Bought Back Price (RM) Hi/Lo (RM) 67,800 51,000 100,000 10,000 300,000 2,000 77,000 16,900 18.92/18.80 0.44/0.425 0.61/0.605 0.23 0.535/0.53 1.33/1.31 0.96/0.955 1.05 18.92/18.78 0.44/0.425 0.615/0.595 0.225/0.22 0.535/0.53 1.37/1.31 0.96/0.95 1.05/1.02 BKAWAN CHEETAH GLBHD GRANFLO SALCON TEXCHEM TROP UNIMECH Total Treasury Shares 32,697,231 10,698,700 7,364,800 6,438,800 36,581,000 2,586,500 3,018,942 5,180,210 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. liability for any direct or indirect loss arising from the use of this document. the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 6 of 6 We accept no We, our associates, directors, employees may have an interest in
9. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 10-Jul-17 1.96 2.24 5.50 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.37 2.28 5.51 0.94 0.61 1.26 10.3 24.1 19.7 15.8 25.3 30.7 19.0 9.3 28.0 12.4 8.9 17.9 6.0 4.0 2.4 8.1 4.0 3.6 2.44 2.70 6.47 -19.7 -17.0 -15.0 1.88 1.96 4.09 4.3 14.3 34.4 -8.0 4.7 30.2 4.80 3.70 5.70 8.00 17.50 11.00 23.60 5.80 10.00 1.29 0.96 1.33 1.38 0.66 0.96 0.79 1.32 0.69 33.6 29.4 43.9 49.6 105.2 73.4 137.2 50.7 40.3 30.5 33.6 48.4 55.2 115.5 82.9 142.4 54.5 39.0 11.4 9.0 11.4 13.2 15.2 13.1 14.8 10.0 26.1 12.6 7.9 10.3 11.8 13.9 11.6 14.3 9.3 26.9 4.2 3.0 3.5 3.1 2.6 5.2 2.8 2.4 3.2 4.2 3.0 3.6 3.5 2.6 5.2 2.9 2.4 3.2 4.49 3.00 5.70 6.87 16.30 9.68 20.66 5.59 11.14 -14.5 -12.0 -12.1 -4.9 -1.8 -0.6 -1.6 -9.3 -5.7 3.60 2.08 3.90 4.11 12.70 7.50 19.26 4.53 8.20 6.7 26.9 28.5 58.8 26.0 28.3 5.5 11.9 28.0 3.2 10.5 16.2 44.8 18.5 17.3 3.0 7.6 18.6 0.41 1.30 5.42 3.50 0.66 1.20 2.02 2.09 5.91 0.45 1.57 6.00 3.50 0.78 0.58 2.26 1.49 6.26 0.79 0.63 1.05 1.09 1.01 1.27 na 1.09 0.10 5.6 14.6 28.1 15.3 4.9 8.3 12.6 11.9 42.0 5.6 13.5 34.8 20.3 5.7 9.6 12.5 12.0 45.8 7.2 8.9 19.3 22.8 13.3 14.5 16.0 17.5 14.1 7.2 9.6 15.6 17.2 11.6 12.4 16.1 17.4 12.9 0.0 2.2 2.2 2.1 3.8 0.8 2.7 1.4 4.2 0.0 2.2 2.2 2.7 3.8 0.8 2.7 1.4 4.2 0.51 1.37 5.52 3.61 0.74 1.39 2.15 2.48 6.15 -20.6 -5.1 -1.8 -3.0 -10.2 -13.7 -6.0 -15.6 -3.9 0.37 0.88 4.65 3.07 0.36 0.41 1.56 1.47 5.57 9.5 48.4 16.6 14.0 85.9 196.3 29.5 42.1 6.1 -6.9 23.8 13.4 9.4 9.1 108.7 18.8 21.5 0.5 1.98 2.00 0.49 11.0 11.5 18.0 17.2 5.1 5.1 2.19 -9.6 1.93 2.6 -1.5 15.04 18.10 17.84 21.08 0.50 0.59 74.8 93.1 81.3 20.1 101.9 19.4 18.5 17.8 5.0 4.6 5.4 5.1 15.30 19.10 -1.7 -5.2 13.72 15.56 9.6 16.3 8.0 10.5 2.19 7.34 25.40 1.19 83.56 3.46 1.95 4.91 0.91 2.23 8.62 27.41 1.39 88.66 4.10 2.46 4.41 1.23 0.49 0.35 0.32 0.46 0.36 0.48 0.64 0.43 0.56 6.7 26.4 121.1 6.1 290.1 22.3 27.5 15.7 8.1 7.9 40.6 151.0 6.3 327.7 24.7 27.0 16.6 11.6 32.6 27.8 21.0 19.6 28.8 15.5 7.1 31.3 11.2 27.8 18.1 16.8 19.0 25.5 14.0 7.2 29.5 7.8 1.8 1.4 2.8 5.0 3.3 4.3 3.1 0.9 2.8 2.2 2.0 3.0 5.1 3.4 4.9 4.1 1.0 3.9 3.00 8.89 26.60 1.33 85.20 3.66 2.04 5.00 1.07 -27.0 -17.4 -4.5 -10.4 -1.9 -5.3 -4.4 -1.8 -15.4 2.11 7.30 22.44 1.13 74.12 2.26 1.46 4.14 0.78 3.8 0.5 13.2 5.2 12.7 53.1 33.6 18.5 16.0 -14.8 0.2 8.2 3.4 6.9 36.3 12.7 13.4 13.8 42.26 52.08 1.01 198.6 187.4 21.3 22.5 4.7 4.7 55.64 -24.0 40.61 4.1 -4.3 9.03 5.61 11.51 6.54 1.35 1.29 49.3 25.7 54.7 27.7 18.3 21.8 16.5 20.2 0.6 1.4 0.6 1.6 10.00 6.38 -9.7 -12.1 7.50 4.19 20.4 33.8 13.7 24.2 2.41 0.12 3.34 0.13 0.75 1.25 19.3 0.4 23.2 0.4 12.5 33.1 10.4 33.3 5.8 0.0 6.6 0.0 3.42 0.16 -29.5 -25.0 2.41 0.05 0.0 140.0 -18.6 140.0 5.91 4.24 6.39 4.70 0.77 0.51 9.5 13.3 15.0 16.5 61.9 31.8 39.5 25.7 0.6 1.4 0.6 1.8 6.73 4.37 -12.2 -3.0 5.54 3.85 6.7 10.1 -6.9 1.4 6.75 6.75 1.97 5.60 1.64 6.80 7.60 1.80 6.05 2.20 0.58 0.16 0.33 -0.20 0.29 17.2 35.8 12.3 26.4 3.7 24.4 40.0 15.1 29.8 5.5 39.2 18.8 16.0 21.2 44.0 27.6 16.9 13.1 18.8 29.9 1.2 2.7 1.9 2.4 0.6 1.6 3.0 2.3 2.7 0.8 7.40 7.07 2.38 5.94 2.64 -8.8 -4.5 -17.2 -5.7 -37.9 4.06 5.62 1.88 4.20 1.64 66.3 20.1 4.8 33.3 0.0 39.8 2.4 -6.6 4.7 -30.5 INDUSTRIAL SCIENTX SKPRES 8.53 1.29 9.71 1.80 0.53 0.50 54.5 8.6 66.3 10.6 15.7 15.0 12.9 12.1 2.1 3.2 2.3 4.0 8.99 1.44 -5.1 -10.4 6.01 1.15 41.9 12.2 27.3 0.0 MEDIA ASTRO MEDIA PRIMA STAR 2.53 0.90 2.35 3.45 0.60 1.40 1.06 0.65 0.64 13.2 1.7 7.1 14.5 2.8 6.5 19.1 52.4 33.1 17.5 31.7 36.2 4.9 1.5 7.7 5.1 2.5 7.7 3.01 1.52 2.67 -15.9 -41.1 -12.0 2.51 0.89 2.19 0.8 1.1 7.3 -2.7 -22.2 4.9 -13.0 -31.5 -6.5 -7.5 -11.7 -22.4 -60.6 0.20 0.79 7.03 0.44 6.43 1.33 0.40 207.7 0.6 5.1 41.4 7.2 22.6 3.8 135.3 -13.1 0.5 38.2 -1.3 0.6 -53.1 -21.7 1.30 19.2 -8.8 BANKS & FINANCIAL SERVICES AFG 3.84 AFFIN 2.64 AMBANK 5.01 CIMB 6.53 HLBANK 16.00 MAYBANK 9.62 PBBANK 20.32 5.07 RHBBANK BURSA 10.50 CONSTRUCTION BPURI GADANG GAMUDA IJM PESONA SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N HUPSENG NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX OIL & GAS DNEX 0.60 0.76 1.02 3.7 4.6 16.4 13.1 1.7 1.7 0.69 MHB 0.80 0.87 1.83 -1.2 1.3 na 60.7 0.0 0.0 1.16 MISC 7.39 6.85 0.79 56.4 48.9 13.1 15.1 4.1 4.1 7.90 PANTECH 0.62 0.69 1.27 4.1 4.9 14.8 12.5 2.9 3.2 0.67 PCHEM 6.89 7.74 1.06 39.2 40.5 17.6 17.0 3.0 3.2 7.80 SENERGY 1.63 1.71 2.49 6.6 4.0 24.7 41.1 0.6 0.6 2.10 UMWOG 0.41 0.80 2.06 -11.7 -3.5 na na 0.0 0.0 1.04 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.55 1.55 1.48 12.0 12.6 13.0 12.3 0.0 0.0 1.98
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 1.65 3.00 4.49 24.72 9.54 6.48 Target Price BETA (RM) 1.55 3.88 4.15 26.19 10.02 7.52 1.78 0.46 1.07 0.86 1.23 0.43 EPS (sen) PER (X) FY17 FY18 FY17 FY18 4.2 12.3 18.7 111.8 34.0 37.6 8.5 15.7 21.0 119.1 37.5 34.5 39.1 24.4 24.0 22.1 28.0 17.3 19.4 19.1 21.4 20.8 25.4 18.8 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 3.0 2.3 2.2 2.2 2.6 3.5 3.0 2.7 2.7 2.4 3.2 2.6 2.52 3.70 4.81 25.50 9.70 6.58 -34.5 -18.9 -6.7 -3.1 -1.6 -1.5 1.42 2.99 4.21 22.92 7.41 5.53 PROPERTY GLOMAC 0.64 0.70 0.57 1.6 6.3 40.2 10.1 4.7 4.7 0.83 -22.4 0.64 HUAYANG 1.03 1.07 0.66 17.3 17.4 6.0 5.9 3.9 3.4 1.43 -28.1 1.03 IBRACO 0.81 0.92 0.36 4.9 10.2 16.5 7.9 4.3 5.0 1.05 -23.3 0.79 IOIPG 2.15 2.25 0.86 17.4 17.4 12.4 12.3 3.3 3.5 2.46 -12.6 1.85 MAHSING 1.56 1.76 0.73 14.3 13.5 10.9 11.5 4.2 4.2 1.70 -8.2 1.34 SNTORIA 0.85 0.98 0.27 6.2 10.3 13.8 8.2 1.2 1.2 1.00 -15.0 0.69 SPB 4.86 5.98 0.59 25.6 22.8 12.7 14.3 2.5 2.5 5.19 -6.4 4.32 SPSETIA 3.26 4.10 0.67 27.3 29.4 14.4 13.4 4.3 4.3 4.50 -27.6 2.80 SUNWAY 3.93 3.95 0.47 18.3 18.6 13.0 12.8 3.1 3.1 4.05 -3.0 2.84 Note: SUNWAY proposed bonus issue of shares and warrants. Ex-Target price RM1.69. For more details please refer to 15.06.17 report. REIT SUNREIT 1.70 1.86 0.51 8.9 10.1 19.2 16.8 5.2 5.9 1.84 -7.6 1.63 CMMT 1.56 1.72 0.58 8.1 8.6 19.3 18.1 5.4 5.7 1.72 -9.3 1.45 % Chg YTD 16.2 0.3 6.7 7.9 28.7 17.2 6.5 -11.8 2.0 3.0 17.8 8.0 0.8 0.0 2.5 16.4 16.4 23.2 12.4 16.4 38.3 -7.9 -8.8 -19.5 10.3 9.1 6.2 9.9 4.2 31.0 4.3 7.6 -1.2 2.0 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.02 23.88 18.90 14.12 1.43 1.13 21.47 19.60 17.37 1.90 0.76 0.76 0.77 1.02 0.53 7.1 98.4 88.2 131.9 8.2 6.4 102.3 101.3 130.8 10.7 14.3 24.3 21.4 10.7 17.4 15.9 23.4 18.7 10.8 13.4 6.9 3.1 3.3 3.1 7.0 6.9 3.2 3.7 3.2 7.0 1.80 25.70 22.50 14.90 1.64 -43.3 -7.1 -16.0 -5.2 -12.8 1.02 22.92 18.10 13.00 1.39 0.0 4.2 4.4 8.6 2.9 -25.5 0.3 -11.3 1.6 -4.0 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 4.69 4.98 5.51 6.49 5.25 4.95 5.70 7.50 1.31 0.93 0.71 0.66 14.6 20.8 24.8 21.4 16.0 21.1 25.0 22.3 32.2 23.9 22.2 30.3 29.3 23.6 22.0 29.1 1.6 4.2 3.6 3.0 1.7 4.2 3.6 3.1 5.99 5.19 6.60 6.90 -21.7 -4.0 -16.5 -5.9 4.11 4.70 5.48 5.81 14.1 6.0 0.5 11.7 -0.6 3.1 -7.9 9.1 TECHNOLOGY Semiconductor & Electronics IRIS 0.18 INARI 2.20 MPI 13.32 UNISEM 3.60 0.28 2.30 15.60 3.95 1.31 0.80 0.51 0.82 -2.6 10.3 94.2 26.9 -0.3 na 12.4 21.4 112.9 14.1 27.1 13.4 na 17.8 11.8 13.3 0.0 3.6 2.0 3.3 0.0 2.2 2.0 3.3 0.24 2.23 13.58 3.70 -27.1 -1.3 -1.9 -2.7 0.10 1.44 7.20 2.27 75.0 53.1 85.0 58.6 59.1 32.5 79.8 52.5 3.15 8.47 3.34 8.10 1.10 1.44 37.6 17.2 37.1 17.5 8.4 49.1 8.5 48.4 1.3 1.2 1.6 1.2 3.59 9.45 -12.3 -10.4 2.16 5.76 45.8 47.0 37.6 39.8 1.75 3.67 2.05 4.05 0.75 0.67 14.3 17.1 22.7 15.1 12.2 21.4 7.7 24.3 2.5 3.5 4.0 3.1 1.87 4.59 -6.4 -20.0 1.47 3.61 19.0 1.7 10.1 -14.7 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 21.00 OCBC 10.80 UOB 23.31 PLANTATIONS WILMAR IFAR 3.32 0.48 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 23.30 12.00 25.40 1.23 1.14 1.08 173.8 87.7 195.6 190.2 12.1 92.4 12.3 209.3 11.9 11.0 11.7 11.1 2.9 5.7 3.0 2.9 6.7 3.0 21.2 11.0 24.0 -0.8 -1.4 -3.0 14.72 8.84 17.51 42.7 30.6 33.1 21.1 21.1 14.3 3.72 0.53 0.91 1.13 28.9 4.9 31.1 5.2 10.7 9.1 2.4 2.5 2.7 2.7 4.0 0.6 -17.0 -20.2 2.96 0.44 12.2 8.0 -7.5 -9.5 11.5 9.8 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.
11. TA Securities A Member of the TA Group MENARA TA ONE , 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Gadang Holdings Bhd C O M P A N Y U P D A T E Tuesday, July 11, 2017 FBMKLCI: 1,757.13 Sector: Construction TP: RM1.57(+20.8%) Last traded: RM1.30 Disposing Plantation Business BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Ooi Beng Hooi Tel: 603-2167-9612 benghooi@ta.com.my Gadang has entered into a Sale of Shares Agreement (SSA) with a non-related party, Kumpulan Sawit Tan Holdings Sdn Bhd in relation to the disposal of its plantation unit, Desiran Impian Sdn Bhd (DISB) for a cash consideration of RM15.0mn. DISB is operating oil palm plantation business in Ranau, Sabah, with a land area of 5181 acres. The disposal consideration shall be paid in the following manner: i) RM1.5mn as a payment of deposit upon the execution of the SSA; ii) RM3mn on or before 30 September 2017; iii) RM3mn on or before 31 December 2017; and iv) RM7.5mn on or before 31 May 2018. www.taonline.com.my Share Information Bl oomberg Code GADG MK Burs a GADANG Stock Code 9261 Li s ti ng Ma i n Ma rket Sha re Ca p (mn) 655.8 Ma rket Ca p (RMmn) 859.1 52-wk Hi /Lo (RM) 1.37/0.88 12-mth Avg Da i l y Vol ('000 s hrs ) 7140.8 Es ti ma ted Free Fl oa t (%) 64.67 Beta 0.63 Major Shareholders (%) Mel ori a Sdn Bhd - 13.34 Sumbe r Ra s wi ra Sdn Bhd - 12.41 Forecast Revision Gadang has invested RM17.9mn in DISB and the disposal is expected to incur an estimated loss of RM1.2mn. The disposal consideration shall be utilised for general working capital requirement in the group. Our View We are slightly negatively on the proposed disposal as the disposal price was below our conservative valuation of RM52.4mn (based on RM25k/ha) for its plantation business and the disposal would incur a small loss. Nevertheless, the proposed disposal allows the group to dispose of its non-core and loss making business, and channel its resources to focus on its key businesses. Impact We maintain our earnings forecasts pending completion of the deal expected by 31 May 2018. Valuation Following the announcement, we adjust our valuation for its plantation business from RM52.4mn to RM15mn, and lower our target price from RM1.62 to RM1.57, based on sum-of-parts valuation. Maintain BUY call on the stock. Construction Property Utilities Plantation Warrant conversion TOTAL Enlarged share base Target price SOP valuation (RMmn) 508.7 486.6 68.4 15.0 137.1 1215.7 775.9 1.57 Foreca s t Revi s i on (%) Ne t profi t (RMm) Cons ens us TA's / Cons ens us (%) Previ ous Ra ti ng Financial Indicators Ne t Debt / Equi ty (%) CFPS (s en) Pri ce / CFPS (x) ROA (%) NTA/Sha re (RM) Pri ce/NTA (x) FY17 FY18 net ca s h net ca s h 0.8 (9.5) 165.1 (13.8) 8.3 7.9 0.8 0.9 1.7 1.5 Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth GADANG FBM KLCI 0.0 (1.8) (1.5) 1.2 23.8 4.9 40.7 6.2 (12-Mth) Share Pricerelative to the FBM KLCI Remark 14x CY18 net profit 8x CY18 net profit 12x CY18 net profit Proposed disposal price Source: Bloomberg Page 1 of 2 FY17 FY18 95.4 88.0 92.7 94.4 102.9 93.2 Buy (Ma i nta i ned)
12. TA Securities 11-Jul-17 A Member of the TA Group Financial Statements Profit & Loss (RMmn) YE May 31 Balance Sheet (RMmn) FY15 YE May 31 FY15 FY16 FY17F FY18F Revenue 587.4 676.1 567.6 735.0 853.4 Fixed assets 93.1 76.4 78.4 79.6 80.8 EBITDA 92.9 126.6 141.1 133.0 162.3 Concession assets 46.1 61.3 75.2 87.7 98.9 Dep. & amortisation (5.6) (6.1) (8.1) (9.5) (11.8) Others Finance cost (2.5) (2.6) (3.5) (3.6) (2.9) PBT 84.8 124.1 129.5 119.9 Core PBT 84.8 124.1 129.5 119.9 Taxation (24.0) (29.4) (33.0) 1.2 0.4 1.1 PATAMI 59.6 94.2 Core PATAMI 59.6 94.2 Core EPS (sen)* MI FY16 FY17F FY18F FY19F FY19F 53.2 74.0 73.6 73.2 71.8 Total NCA 192.3 211.7 227.2 240.5 251.5 147.7 Cash & equivalents 232.7 294.3 296.8 266.3 260.0 147.7 Others 401.1 716.8 553.6 649.9 697.1 (30.6) (37.7) CA 633.8 1,011.1 850.4 916.1 957.1 1.3 3.3 95.4 88.0 106.7 Total Assets 826.1 1,222.8 1,077.6 1,156.6 1,208.6 95.4 88.0 106.7 11.2 16.3 14.8 13.6 16.5 ST debt 101.2 55.8 89.3 91.2 91.2 GDPS (sen)* 2.0 2.8 2.8 2.8 2.8 Others 232.4 319.6 207.7 195.9 195.9 Div yield (%) 1.5 2.1 2.1 2.1 2.1 CL 333.6 375.4 297.0 287.1 287.1 LT borrowings 91.8 167.0 143.2 151.0 101.0 YE May 31 FY15 FY16 FY17F FY18F FY19F Others 12.3 144.1 13.5 14.4 15.4 PBT 84.8 124.5 129.5 119.9 147.7 LT Liabilities 104.1 311.0 156.7 165.4 116.4 Dep. & amortisation 11.8 Cash Flow (RMmn) 23.1 24.9 8.1 9.5 Other adjustments 4.5 (3.9) (3.5) (3.6) (2.9) Share cap 216.4 258.6 323.3 323.3 323.3 Changes in WC 8.9 (121.0) (79.1) (107.2) (46.2) Reserves 165.0 270.5 292.2 371.1 468.8 (28.1) (26.6) (33.0) (30.6) (37.7) NCI 7.0 7.3 8.4 9.7 13.0 Income tax 93.2 (2.1) 21.9 (12.0) 72.7 Shareholders' fund 381.4 529.1 615.5 694.4 792.1 Capex (28.6) (3.2) (3.5) (2.8) (2.8) Total Equity 388.4 536.4 623.8 704.1 805.0 Others (14.8) (2.8) (20.0) (20.0) (20.0) Total Equity & Liabilities 826.1 1,222.8 1,077.6 1,156.6 1,208.6 Operational cash flow Investment cash flow (43.4) (6.0) (23.5) (22.8) (22.8) Debt raised/ (repaid) 104.0 85.9 9.7 9.7 (50.0) Equity raised/ (repaid) 32.4 62.2 0.0 0.0 0.0 Dividend (8.7) (11.8) (9.1) (9.1) (9.1) (81.9) (67.6) 3.5 3.6 Others Ratio YE May 31 FY15 FY16 FY17F FY18F EBITDA margin (%) 15.8 19.5 24.9 18.1 19.0 2.9 Core EPS (sen)* 11.2 16.4 14.8 13.6 16.5 EPS Growth (%) 26.9 46.8 (9.9) (7.8) 21.3 PER (x) 11.7 8.0 8.9 9.6 7.9 GDPS (sen)* 2.0 2.8 2.8 2.8 2.8 Div Yield (%) 1.5 2.1 2.1 2.1 2.1 39.6 71.5 64.3 24.1 67.8 Financial cash flow 45.9 68.7 4.1 4.3 (56.2) Net cash flow 95.7 60.6 2.5 (30.6) (6.3) Net cash (RMm) Net gearing (x) FY19F net cash net cash net cash net cash net cash ROE (%) 17.5 20.8 16.7 13.4 14.4 ROA (%) 8.5 9.3 8.3 7.9 9.0 NTA/share (RM)* 0.6 0.7 0.8 0.9 1.0 P/NTA (x) 2.3 2.0 1.7 1.5 1.3 Note: *Adjusted for 1 into 2 share split and 1 for 4 share bonus issue in Nov 16 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 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. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
13. TA Securities A Member of the TA Group MENARA TA ONE , 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 SECTOR UPDATE Tuesday, July 11, 2017 FBM KLCI: 1,757.13 Sector: Plantation Neutral Plantation Sector Stockpile Decline but Within Expectation THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Angeline Chin Swee Tyng Tel: +603-2167-9611 angelinechin@ta.com.my Lower Stockpiles Due to Seasonal Lower Production MPOB’s June 2017 monthly production declined 8.5% MoM and 1.2% YoY to 1.51mn tonnes, which was below expectations of 1.62 - 1.64mn tonnes. As a result, the growth in palm oil stockpiles narrowed by 1.9% MoM to 1.53mn tonnes. Meanwhile, exports declined 8.4% MoM to 1.38mn tonnes mainly due to weak demand from China and India. Imports were slightly lower (-3.4% MoM, >100% YoY) at 46k tonnes. Domestic demand meanwhile declined sharply to 210k tonnes (-11.9% MoM, -26.4%YoY), which we suspect could be due to inventory destocking and lower biodiesel offtake. Production Marked Its First Decline CPO production marked its first decline after 6th consecutive YoY growth. We attribute the decline to fewer working days and holiday break for workers during Eid al-Fitr celebration. The FFB yield declined 4.1% MoM or 3.5% YoY to 1.39 tonnes/ha during the month. The FFB yield increase in Sarawak (+4.0% MoM) was not able to offset the decline in P. Malaysia (-9.5% MoM) and Sabah (-3.7% MoM). The YTD production stood at 8.7mn tonnes (+14.8% YoY) with higher production coming from all states except Terengganu (-6.0% YTD) and Kelantan (3.9%). Exports Within Expectations Exports came in within expectations at 1.38mn tonnes. All major exports destinations showed MoM declines except for US (+24.2% MoM) and Pakistan (+14.1% MoM). Exports to China declined the most with 39.4%, followed by India (-13.0% MoM) and EU (-0.4% MoM). As expected, the weak demand in India could be due to post Ramadan destocking activity. Meanwhile, the decline in China could be due to higher soybean import and local crushing activities. Looking forward, Intertek estimates that the palm oil exports for the first 10 days of July to decrease by 1.9% to 360k while another cargo surveyor, SocieteGenerale de Surveillance (SGS) estimates that exports increased by 3.8% to 381k tonnes. Record Soybean Acres in US but Don’t Capture the Acreage Crown The U.S. Department of Agriculture (USDA) recently released its planting data showing that soybean planted for 2017 is estimated at a record high of 89.5mn acres (+7.2% YoY). However, it does not capture the acreage crown as corn remains king at 90.89mn acres (-3.3% YoY). Soybean stock is reported to be 963mn bushels, which is below trade expectations. Soybean price and CPO price reacted positively to this news and trade higher after the reports was released. After all, the July and August weather will be crucial as near term weather forecasts varied and raised crop concerns. We expect soybean and CPO prices to hold steady in the near-term due to weather speculation thread. Maintain our 2017 average CPO forecast price at RM2,700/tonne. Maintain Neutral We reiterate our Neutral recommendation on the Plantation sector. Our re-rating catalysts include: 1) extreme weather change, which would affect both the production and CPO price, 2) downward revisions in soybean production estimates, and 3) better-than-expected demand in China and India. Maintain BUY recommendation on IJMP and United Malacca. We continue to like IJMP for its huge potential earnings accretion from its Indonesia operations in the long-term. While for United Malacca, its young tree profile, a strong earnings growth prospect and attractive Page 1 of 4 www.taonline.com.my
14. TA Securities 11-Jul-17 A Member of the TA Group valuations should help to boost its share price higher . Maintain Hold on KLK, Sime Darby, Wilmar and IFAR as near-term catalysts have already been priced in. Lastly, maintain Sell on IOI and FGV due to pricey valuation. Figure 1: Movement in Stockpiles Figure 2: CPO Production (YoY Growth) 30% '000 tonnes 21% 20% 3,500 20% 1,514 19% 21% 13% 3,000 10% 2,500 5% 0% -10% Source: MPOB, TA Research Jun-17 Apr-17 May-17 Mar-17 Jan-17 Jan-16 June Stocks Feb-16 May Stocks Feb-17 -30% 0 Oct-16 500 Sep-16 Import -18% -23%-25% Jul-16 Dom. Usage -12% -13%-13% -17% -18% -20% Aug-16 Export 1,481 Jun-16 Production 1,481 Apr-16 1,557 1,692 -5% -7% May-16 (210) 1,000 -1% -3% (1,380) 1,500 Dec-16 1,527 46 Mar-16 1,557 Nov-16 2,000 Source: MPOB, TA Research Figure 3: Monthly Palm Oil Data '000 tonnes Production Stock Export Dom. Usage Import Jun-16 1,533 1,775 1,142 286 20 May-17 1,654 1,557 1,506 239 47 Jun-17 1,514 1,527 1,380 210 46 % MoM (8.5) (1.9) (8.4) (11.9) (3.4) % YoY (1.2) (14.0) 20.8 (26.4) >100 1H16 7,590 7,301 1,406 258 1H17 8,716 7,829 1,389 362 YoY % 14.8 7.2 (1.3) 40.2 Source: MPOB, TA Research Figure 4: Monthly Palm Oil Exports Data '000 tonnes EU-25 US China India Pakistan Others Total Jun-16 151 30 101 169 89 602 1,142 May-17 169 39 113 274 108 803 1,506 Jun-17 169 48 69 238 124 733 1,380 % MoM (0.4) 24.2 (39.4) (13.0) 14.1 (8.7) (8.4) % YoY 12.0 58.6 (31.9) 40.8 39.5 21.6 20.8 1H16 891 308 611 1,428 368 3,694 7,301 1H17 927 253 693 1,117 438 4,401 7,829 YoY % 4.0 (17.7) 13.4 (21.8) 18.9 19.1 7.2 Source: MPOB, TA Research Figure 5: Stock vs. CPO Price RM/tonne Figure 6: CPO Production '000 tonnes tonne ('000) 3800 3500 3300 3000 2800 2500 2300 2000 1800 1500 1300 1000 2,100 1,900 1,700 1,500 1,300 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 1,100 Palm Oil Stock (RHS) Source: MPOB, TA Research 900 Jan Feb Mar 2013 CPO Price (LHS) Source: MPOB, TA Research Page 2 of 4 Apr 2014 May Jun Jul 2015 Aug Sep 2016 Oct Nov Dec 2017
15. TA Securities 11-Jul-17 A Member of the TA Group Figure 7 : Malaysia Average FFB Yield Trend Figure 8: Oceanic Nino Index (ONI) (tonnes/ha) 2.3 2.5 2.1 1.5 Strong 1.9 1.0 Moderate 1.7 0.5 Weak Very Strong 2.0 1.5 0.0 1.3 -0.5 Weak 1.1 -1.0 Moderate -1.5 Strong 0.9 Source: MPOB, TA Research 2017 2016 2015 2014 2017 2013 2016 2012 2015 2011 2014 2010 2013 Oct Nov Dec 2009 2012 Aug Sep 2008 2011 Jul 2007 Mar Apr May Jun 2006 Jan Feb -2.0 *above the +0.5 anomaly for warm (El Nino) events *below the -0.5 anomaly for cold (La Niña) events Source: NOAA, TA Research Figure 9:CPO Differential to Gas Oil (In USD/ Tonne) Figure 10: MYR/USD 4.7 600 500 400 300 200 100 0 -100 -200 -300 4.5 4.3 4.1 3.9 3.7 3.5 3.3 Feb-17 Jul-16 Dec-15 May-15 Oct-14 Mar-14 Aug-13 Jan-13 Jun-12 Apr-11 Nov-11 Sep-10 Feb-10 Jul-09 Dec-08 May-08 Oct-07 Mar-07 Jan-06 Source: Bloomberg, TA Research Aug-06 2.9 Apr-17 Nov-16 Jan-16 Jun-16 Aug-15 Oct-14 Mar-15 May-14 Jul-13 Dec-13 Feb-13 Apr-12 Sep-12 Nov-11 Jan-11 Jun-11 3.1 Source: Bloomberg, TA Research Figure 11: Peers’ Comparison Table Call Price TP (RM) (RM) CY17 (x) CY18 (x) Company PER P/BV CY17 CY18 (x) (x) Dividend Yield CY17 CY18 (%) (%) ROE CY17 CY18 (%) (%) Malaysia (RM) IOI Corp KLK Sime Darby United Malacca FGV IJMP Sell Hold Hold Buy Sell Buy 4.49 24.72 9.54 6.48 1.65 3.00 4.15 26.19 10.02 7.52 1.55 3.88 23.2 21.8 27.3 18.4 39.1 20.2 21.5 20.5 25.1 18.1 19.4 17.8 3.5 2.4 1.8 0.8 1.0 1.5 3.3 2.2 1.8 0.8 1.0 1.4 2.4 2.3 2.8 2.9 3.0 2.6 2.7 2.4 3.2 2.7 3.0 2.9 15.8 11.1 6.9 4.3 2.7 7.1 16.0 11.1 7.2 4.2 5.3 7.8 Singapore (SGD) Wilmar IFAR Hold Hold 3.32 0.48 3.72 0.53 16.9 10.0 15.7 9.3 1.4 0.5 1.3 0.5 1.7 2.5 1.9 2.7 8.5 5.4 8.6 5.5 Source: Bloomberg, TA Research Page 3 of 4
16. TA Securities 11-Jul-17 A Member of the TA Group ( T HI S P AGE I S I NT E N T I ON AL L Y L E FT B L ANK) Sector Recommendation Guideline OVERWEIGHT: The industry, as per our coverage universe, is expected to outperform the FBMKLCI over the next 12 months. NEUTRAL: The industry, as per our coverage universe, is expected to perform in line with the FBMKLCI over the next 12 months. UNDERWEIGHT: The industry, as per our coverage universe, is expected to underperform the FBMKLCI over the next 12 months. 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. For TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 4 of 4
17. Tuesday , 11 July, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 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. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
18. T e c h n i c a l TA Securities V i e w Tuesday , July 11, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Technical Stock Picks Malaysia FBM KLCI: 1,757.13 (-2.80, -0.16%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD EKOVEST GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 10/7/2017 1757.13 2.64 3.84 5.01 4.69 6.53 4.98 5.42 9.03 5.61 5.91 4.49 1.02 5.51 9.62 1.28 5.07 9.54 14.12 6.49 3.67 3.15 0.40 0.73 0.41 4.00 1.91 1.61 1.16 1.30 1.60 1.48 2.23 1.26 1.40 1.46 1.28 1.63 2.02 1.22 0.93 2.09 Change (2.80) 0.00 0.03 0.00 -0.01 -0.02 -0.02 -0.01 -0.16 -0.05 0.00 0.02 -0.01 0.02 -0.01 -0.01 0.00 0.00 0.00 -0.07 0.00 0.00 -0.01 -0.02 -0.01 0.02 0.00 -0.02 0.00 0.00 -0.01 -0.03 0.03 0.00 -0.03 -0.02 0.02 -0.02 0.01 0.01 -0.01 -0.01 Tel: +603-2167-9607 High Low 1,760.44 1,754.57 2.66 3.86 5.02 4.71 6.55 5.00 5.45 9.24 5.67 5.92 4.50 1.04 5.52 9.64 1.30 5.08 9.61 14.14 6.57 3.69 3.17 0.41 0.75 0.42 4.00 1.92 1.63 1.17 1.33 1.62 1.52 2.24 1.26 1.45 1.48 1.28 1.64 2.04 1.23 0.95 2.12 2.63 3.82 4.98 4.66 6.48 4.94 5.40 8.98 5.58 5.90 4.45 1.02 5.48 9.61 1.28 5.06 9.52 14.10 6.45 3.64 3.12 0.40 0.73 0.41 3.99 1.90 1.60 1.15 1.30 1.60 1.47 2.21 1.26 1.40 1.45 1.25 1.61 2.01 1.21 0.93 2.08 Bollinger Bands Lower Mid Upper 1,754.57 1,776.37 1,798.17 2.63 3.79 4.85 4.68 6.48 4.95 5.33 9.11 5.46 5.80 4.42 1.00 5.20 9.56 1.28 5.04 9.49 13.99 6.50 3.59 3.07 0.40 0.71 0.40 4.00 1.90 1.57 1.16 1.27 1.61 1.51 2.21 1.25 1.31 1.32 1.24 1.46 1.98 1.17 0.91 2.02 2.67 3.92 5.00 4.90 6.63 4.99 5.43 9.56 5.65 5.95 4.50 1.09 5.75 9.62 1.33 5.09 9.57 14.23 6.59 3.71 3.23 0.41 0.75 0.42 4.06 1.93 1.63 1.19 1.30 1.63 1.59 2.26 1.27 1.43 1.41 1.27 1.71 2.01 1.23 0.95 2.09 2.71 4.05 5.15 5.12 6.77 5.03 5.52 10.00 5.83 6.10 4.58 1.17 6.29 9.67 1.37 5.14 9.66 14.47 6.69 3.83 3.39 0.42 0.79 0.43 4.12 1.95 1.70 1.22 1.34 1.65 1.67 2.30 1.29 1.56 1.50 1.31 1.95 2.04 1.29 0.99 2.16 stsoo@ta.com.my www.taonline.com.my RSI Moving Averages 14d 10d 30d 50d 38.37 1,767.22 1,775.82 1,773.70 DMI DI + DI - ADX 16.61 26.41 21.00 Diff (9.81) 35.60 38.22 47.21 27.55 51.79 44.26 51.20 28.30 47.22 47.91 48.43 19.99 17.57 59.31 37.78 38.85 54.66 50.44 40.90 42.68 44.48 39.22 40.94 41.02 34.92 46.87 48.22 36.13 50.54 38.47 27.05 44.92 43.05 48.23 54.16 44.71 40.25 51.11 46.89 46.76 48.12 14.85 11.35 20.22 8.87 26.29 8.76 18.93 5.85 24.57 14.44 24.51 4.35 9.70 21.01 15.62 14.25 25.65 20.76 16.68 17.22 16.36 11.06 19.68 25.15 14.80 12.93 22.60 14.66 23.92 18.31 16.48 26.21 31.51 30.85 30.80 17.15 17.29 17.38 14.84 30.28 22.54 (5.53) (13.63) 0.65 (22.07) 4.55 (8.52) (3.81) (31.30) 3.22 (6.31) 12.01 (26.97) (31.58) 3.84 (2.91) (6.46) 11.57 4.46 (6.08) (0.34) (8.47) (9.15) (0.52) (11.30) (3.48) (3.48) 2.16 (5.31) 11.35 (3.70) (12.70) (9.92) (1.63) 10.07 13.53 (4.37) (8.55) (0.61) (6.01) 12.92 2.87 2.67 3.87 4.98 4.81 6.58 5.00 5.46 9.38 5.64 5.90 4.49 1.05 5.54 9.63 1.32 5.08 9.54 14.13 6.60 3.67 3.19 0.41 0.75 0.41 4.04 1.92 1.64 1.19 1.31 1.63 1.56 2.25 1.26 1.39 1.42 1.27 1.62 2.02 1.21 0.94 2.08 2.70 4.01 5.04 4.93 6.58 4.99 5.40 9.68 5.71 5.92 4.51 1.11 5.93 9.57 1.32 5.16 9.52 14.11 6.56 3.75 3.20 0.41 0.76 0.41 4.08 1.93 1.61 1.20 1.29 1.63 1.61 2.26 1.28 1.46 1.41 1.29 1.75 2.03 1.24 0.93 2.11 2.78 4.12 5.21 5.05 6.30 5.02 5.38 9.75 5.77 5.99 4.54 1.16 6.16 9.50 1.32 5.27 9.44 14.02 6.52 3.82 3.27 0.44 0.76 0.42 4.22 1.92 1.58 1.24 1.29 1.66 1.90 2.28 1.31 1.39 1.49 1.39 1.83 2.04 1.25 0.92 2.15 20.39 24.97 19.57 30.94 21.74 17.27 22.74 37.15 21.35 20.75 12.49 31.32 41.28 17.17 18.53 20.71 14.08 16.30 22.75 17.56 24.83 20.21 31.52 25.67 26.10 16.41 20.44 19.97 12.57 22.01 29.18 36.13 33.14 20.77 17.26 21.52 25.84 17.99 20.85 17.36 19.67 12.61 32.48 9.68 33.56 34.28 23.30 11.96 40.31 12.90 19.37 18.63 64.66 60.10 17.78 20.05 27.30 27.23 31.54 18.24 6.84 16.46 23.33 14.36 15.47 38.96 14.65 37.16 17.53 21.90 11.44 13.17 15.02 9.90 23.07 22.31 24.08 25.04 15.97 23.59 27.85 12.89 Line (3.47) -0.03 -0.07 -0.04 -0.09 0.06 0.00 0.03 -0.16 -0.03 -0.02 -0.01 0.02 -0.21 0.05 0.00 -0.05 0.02 0.03 0.02 -0.05 -0.02 -0.01 0.00 0.00 -0.05 0.00 0.02 -0.02 0.01 -0.01 -0.09 -0.01 -0.01 0.00 -0.01 -0.03 -0.06 0.00 -0.01 0.00 -0.01 MACD Signal Diff (0.79) (2.686) -0.03 -0.07 -0.05 -0.07 0.10 -0.01 0.03 -0.10 -0.04 -0.02 -0.02 0.02 -0.20 0.06 0.00 -0.06 0.04 0.05 0.03 -0.05 -0.01 -0.01 0.00 0.00 -0.05 0.01 0.02 -0.02 0.01 -0.01 -0.10 -0.01 -0.01 0.00 -0.02 -0.04 -0.07 0.00 -0.01 0.01 -0.02 0.003 0.002 0.012 (0.019) (0.042) 0.002 (0.006) (0.055) 0.008 (0.000) 0.004 (0.006) (0.001) (0.011) (0.008) 0.007 (0.016) (0.027) (0.015) 0.004 (0.008) 0.000 0.000 0.001 0.002 (0.004) (0.006) (0.001) (0.000) (0.001) 0.012 (0.004) 0.002 (0.005) 0.019 0.009 0.004 (0.000) 0.001 (0.004) 0.006 DMI MACD Recent Signal SELL SELL DMI MACD Signal Change - SELL SELL BUY SELL BUY SELL SELL SELL BUY SELL BUY SELL SELL BUY SELL SELL BUY BUY SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL BUY SELL SELL SELL SELL BUY BUY SELL SELL SELL SELL BUY BUY BUY SELL - BUY BUY BUY SELL SELL BUY SELL SELL BUY SELL BUY SELL SELL SELL SELL BUY SELL SELL SELL BUY SELL BUY BUY BUY BUY SELL SELL SELL SELL SELL BUY SELL BUY SELL BUY BUY BUY SELL BUY 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
19. Technical Comments : Take Profit DiGi.com & TM Bearish technical momentum on DiGi.com shares point to profit-taking correction potential towards the 61.8%FR (RM4.85), with stronger retracement supports seen from the 50%FR (RM4.75) and 38.2%FR (RM4.65), while strong overhead resistance is from the 30/3/17 high (RM5.19). Likewise, TM should slip into profit-taking correction mode, with better retracement supports from the 50%FR (RM6.36) and 38.2%FR (RM6.23), and key overhead hurdle from the 30/8/16 peak (RM6.90). DIGI Upper Middle RM4.98 (-0.02) BOLLINGER BANDS RM RM 5.03 4.99 10-day 30-day RM 4.95 50-day Lower DMI Recent Signal SELL 5.02 Recent Signal BUY Signal Change TM Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 5.00 RM 4.99 BOLLINGER BANDS RM RM RM DMI RM6.49 (-0.07) 6.69 6.59 6.50 SELL SIMPLE MOVING AVERAGES RM 6.60 RM 6.56 RM 6.52 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4
20. T e c h n i c a l TA Securities V i e w Tuesday , July 11, 2017 FBMKLCI: 1,757.13 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Stock Screen s Malaysia End Day Census of 10.07.2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* 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 BURSA MALAYSIA MNRB HOLDINGS MMS VENTURES BHD ENG KAH CORP BHD GLOBETRONICS TEC AMBANK HLDG BHD GEORGE KENT MALA EXCEL FORCE MSC MULTI-USAGE HLDG DKSH HOLDINGS M SHANGRI-LA HOTEL CHOO BEE METAL BISON CONSOLIDAT TA ANN HLDGS BHD SARAWAK OIL PALM SUNSURIA BHD ECONPILE HOLDING PLB ENGINEER MATRIX CONCEPTS AMTEK HLDGS IDEAL JACOBS MAL CREST BUILDER HO INNITY CORP BHD FLBHD WCT HOLDINGS BHD REX INDUS BHD BREM HLDG BHD DAIBOCHI PLASTIC MUHIBBAH ENGR QUALITY CONCRETE Price 10.50 2.65 1.47 1.56 6.06 5.01 4.09 1.14 0.75 4.99 5.07 2.28 2.37 3.52 3.59 1.43 2.50 1.50 2.73 0.31 0.42 1.13 0.73 1.72 2.09 2.26 0.99 2.29 2.75 1.20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 10.29 2.44 1.29 1.39 5.89 4.85 3.94 1.00 0.64 4.88 4.96 2.18 2.27 3.42 3.49 1.33 2.41 1.41 2.64 0.22 0.34 1.05 0.65 1.64 2.02 2.19 0.92 2.22 2.68 1.14 10.49 2.63 1.45 1.55 6.05 5.00 4.08 1.13 0.74 4.98 5.06 2.27 2.35 3.50 3.58 1.42 2.48 1.49 2.71 0.30 0.40 1.12 0.72 1.71 2.09 2.25 0.99 2.28 2.74 1.20 10.68 2.82 1.61 1.72 6.21 5.15 4.22 1.25 0.83 5.07 5.17 2.35 2.44 3.58 3.66 1.50 2.56 1.57 2.78 0.38 0.46 1.19 0.78 1.78 2.16 2.32 1.05 2.34 2.79 1.26 50.22 53.66 59.65 50.70 57.49 47.21 50.60 52.22 48.69 51.55 49.99 54.25 51.63 48.60 52.32 51.97 57.93 52.57 54.05 52.39 64.15 59.87 52.44 51.37 48.13 60.17 57.57 54.04 48.74 50.41 10.53 2.69 1.52 1.62 6.06 4.98 4.13 1.18 0.70 4.98 5.03 2.28 2.38 3.53 3.57 1.45 2.51 1.48 2.72 0.33 0.40 1.11 0.72 1.74 2.08 2.27 0.97 2.28 2.74 1.19 10.59 2.57 1.35 1.52 5.94 5.04 4.06 1.11 0.78 4.99 5.10 2.24 2.36 3.51 3.58 1.40 2.47 1.48 2.72 0.28 0.36 1.07 0.71 1.71 2.11 2.21 0.97 2.28 2.76 1.20 10.42 2.56 1.24 1.51 5.79 5.21 4.10 1.12 0.84 4.98 5.10 2.21 2.35 3.56 3.56 1.42 2.42 1.46 2.69 0.26 0.32 1.03 0.72 1.70 2.15 2.15 0.94 2.22 2.81 1.20 Vol 241,200 67,500 1,049,900 10,000 402,100 1,689,500 216,200 340,800 160,700 47,000 58,100 98,500 167,100 157,100 393,500 60,200 1,278,800 5,000 94,800 13,500 1,604,700 257,500 2,200 430,600 93,300 88,200 1,227,400 65,800 352,500 17,000 20-day avg vol 782,935 271,485 2,968,140 17,645 838,510 3,264,465 831,520 714,665 11,270 69,580 104,915 231,385 157,030 168,260 99,365 287,825 1,539,670 1,550 480,595 765 6,154,710 1,227,570 9,780 353,445 1,612,250 333,415 1,166,875 56,481 657,775 1,500 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 mediumterm 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. Page 1 of 2