Bursa Malaysia Daily Market Report - 11 May

Transcription

1. Thursday , 11 May, 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: Secure Jalan Tun Razak Traffic Dispersal and Road Upgrading Works Package 2. Hartalega Holdings Berhad: 4QFY17 Partly Offset by Surge in Raw Material Prices 3. Overseas-Chinese Banking Corp.: Wealth Management Rises to New Highs (9 May 2017) 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 Thursday, 11 May 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (09.05.2017) (mil) Main Market 2,112.7 Warrants 268.8 ACE Market 842.0 Bond 7.4 ETF 0.0 Total 3,231.0 Off Market 92.6 Volume +/-chg (RMmn) -354.9 2,565.4 -33.4 33.7 -366.4 137.5 -22.9 1.3 0.02 0.0 2,737.9 44.9 220.6 Value +/-chg 328.5 -3.2 -16.4 0.0 0.02 -90.6 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 Value/ Volume 1.21 0.13 0.16 0.17 1.01 0.85 2.38 Up Down 303 324 82 65 39 60 2 5 1 1 427 455 % chg % YTD chg 1,766.56 12,645.36 17,571.40 1,767.00 -1.59 -7.43 -91.82 -1.00 -0.09 -0.06 -0.52 -0.06 7.60 10.28 19.41 8.04 20,943.11 6,129.14 7,385.24 19,900.09 2,270.12 25,015.42 3,249.97 1,560.31 5,653.01 3,052.79 1,822.56 5,875.44 -32.67 8.56 43.03 57.09 -22.64 126.39 0.00 0.00 -44.05 -27.74 -25.08 35.54 -0.16 0.14 0.59 0.29 -0.99 0.51 0.00 0.00 -0.77 -0.90 -1.36 0.61 5.97 13.86 3.39 4.11 12.02 13.70 12.82 1.13 6.73 -1.64 -7.44 3.70 The local market traded sideways on Tuesday, as profit-taking interest increased amid uncertainties over the Bandar Malaysia project and ahead of the Wesak Day holiday. The KLCI eased 1.59 points to settle at 1,766.56, after moving within a narrow range bordering 1,770.43 and 1,765.14, as losers edged gainers 455 to 427 on slower turnover totaling 3.23bn shares worth RM2.73bn. Stocks are likely to stay range bound pending more clues over the development of Bandar Malaysia project which should continue to see investors focus on construction related counters. As for the index, immediate uptrend supports will be at 1,751 and 1,742, the rising 30 and 50-day moving average levels, with better support from the lower Bollinger band at 1,725. Immediate upside hurdle stays at 1,782, the 76.4%FR of the 1,867 to 1,503 downswing closely matching the recent two-year high, followed by the 1,800 psychological level and 18 May 2015 high of 1,823. Kim Lun needs breakout confirmation above the 123.6%FP (RM2.39) to aim for the 138.2%FP (RM2.37), 150%FP (RM2.54) and 161.8%FP (RM2.60) ahead, while key breakout support at RM2.26 is reinforced by the 50-day ma (RM2.24). Sustained strength on Mudajaya above the 61.8%FR (RM1.17) will promote further strength towards the 76.4%FR (RM1.28), with tougher hurdle seen from the 6/4/16 peak (RM1.45). Key retracement support is available at the 50%FR (RM1.08). • • • • • Top 10 KLCI Movers Based on Mkt Cap. Off Market PTRANS MAYBANK SPSETTIA SIME TENAGA SERBADK KIPREIT SUNREIT MAGNI BJASSET (mn) 55.0 8.0 7.0 4.2 3.5 3.0 2.9 1.9 1.3 1.3 @ @ @ @ @ @ @ @ @ @ (RM) 0.20 9.38 3.69 9.32 13.90 1.90 1.00 1.71 4.70 0.95 Counter Mkt Cap. (RM’mn) MAYBANK 95,887 TENAGA 78,660 PBBANK 77,153 SIME 63,316 PETGAS 36,607 GENTING 36,239 MISC 32,809 GENM 32,537 IOICORP 28,843 HLBANK 28,361 Chg Vol. (RM) (mn) -0.03 14.77 -0.02 3.88 -0.02 2.33 -0.01 6.94 -0.08 0.64 -0.08 2.59 -0.09 0.27 -0.02 3.73 -0.01 3.50 -0.02 1.19 • • • • • • Important Dates PASUK GB - 1:1 Rights Issue - RI of up to 405.8m shares. SUKGB 1 rights share for every 1 existing share held, at an issue price of RM0.10 per rights share. LISTING ON: 11/05/2017. L&G - 8:5 Rights Issue - RI of up to 1,914.1m shares. 8 rights shares for every 5 existing share held, at an issue price of RM0.21 per rights share. LISTING ON: 18/05/2017. • News Bites Gas Malaysia Bhd is setting aside about RM500mn in capital expenditure for its pipeline network expansion in the next three years, which includes its Natural Gas Distribution System network in peninsular Malaysia. Tenaga Nasional Bhd has signed new deals with YTL Power International Bhd to extend the operations of the latter's power plant in Paka, Terengganu for a further period of three years and 10 months. Malaysian Resources Corp Bhd is expected to complete by year-end the payment for its 70% stake in the joint venture with the Employees Provident Fund to develop the RM8bn main town centre of the massive Kwasa Damansara township. Gadang Holdings Bhd's 51%-owned joint venture company Gadang CRFG Consortium Sdn Bhd has won a major traffic dispersion and improvement job from TRX City Sdn Bhd worth RM327.9mn. Country Heights Holdings Bhd's executive chairman and major shareholder Tan Sri Lee Kim Yew's fixed deposits of some RM126mn placed in a foreign-owned bank has been seized by the Inland Revenue Board. PPB Group Bhd's 55%-owned engineering arm CWM Group Sdn Bhd has bagged RM50mn worth of jobs in water and sewage treatment projects in Selangor and Johor year to date, bringing its current order book to about RM200mn. Selangor Dredging Bhd, via its wholly-owned subsidiary, SDB Connect Sdn Bhd, is acquiring a 20% equity interest in Webcon Mining Sdn Bhd for RM20mn. TRC Synergy Bhd has struck an agreement with Starwood Australia Hotels Pty Ltd to manage a hotel in Melbourne, Australia. EKA Noodles Bhd said its unit EKA Foodstuff Sdn Bhd had fully resumed operations on Tuesday, while another unit Kilang Bihun Bersatu Sdn Bhd would fully resume operations next month. ManagePay Systems Bhd has been appointed by a joint venture company formed by major taxi consortiums here known as PICK N GO Sdn Bhd as the sole card payment facilitator for its taxi e-hailing mobile application. Hartalega Holdings Bhd's FY17 core net profit of RM320.2mn (+25.1% YoY) was within ours but above consensus estimates at 97.4% and 113.4% respectively. The International Monetary Fund has raised its growth forecast for the Asia Pacific region to 5.5% in 2017, but warned that the nearterm outlook for the region is clouded with significant uncertainty. Exchange Rate USD/MYR 4.3470 -0.0008 USD/JPY 113.73 -0.0600 EUR/USD 1.087 -0.0027 Commodities Futures Palm Oil (RM/mt) 2,568.00 28.00 Crude Oil ($/Barrel) 47.34 1.14 Gold ($/tr.oz.) 1,219.10 -2.20 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 Thursday , May 11, 2017 FBMKLCI: 1,766.56 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 Range Bound Pending Bandar Malaysia Cues The local market traded sideways on Tuesday, as profit-taking interest increased amid uncertainties over the Bandar Malaysia project and ahead of the Wesak Day holiday. The KLCI eased 1.59 points to settle at 1,766.56, after moving within a narrow range bordering 1,770.43 and 1,765.14, as losers edged gainers 455 to 427 on slower turnover totaling 3.23bn shares worth RM2.73bn. Uptrend Support at 1,751/1,742 Stocks are likely to stay range bound pending more clues over the development of Bandar Malaysia project which should continue to see investors focus on construction related counters. As for the index, immediate uptrend supports will be at 1,751 and 1,742, the rising 30 and 50-day moving average levels, with better support from the lower Bollinger band at 1,725. Immediate upside hurdle stays at 1,782, the 76.4%FR of the 1,867 to 1,503 downswing closely matching the recent two-year high, followed by the 1,800 psychological level and 18 May 2015 high of 1,823. BUY Kim Lun & Mudajaya Kim Lun needs breakout confirmation above the 123.6%FP (RM2.39) to aim for the 138.2%FP (RM2.37), 150%FP (RM2.54) and 161.8%FP (RM2.60) ahead, while key breakout support at RM2.26 is reinforced by the 50-day ma (RM2.24). Sustained strength on Mudajaya above the 61.8%FR (RM1.17) will promote further strength towards the 76.4%FR (RM1.28), with tougher hurdle seen from the 6/4/16 peak (RM1.45). Key retracement support is available at the 50%FR (RM1.08). Asian Markets Mixed after Trump Fires Comey Asian markets traded mixed on Wednesday, as investors digest the dramatic dismissal of FBI Director James Comey in the U.S. and follow the inauguration of liberal candidate Moon Jaein after his win in the South Korean presidential election. Moon promised social and economic reforms including creating jobs, curbing excessive power of founding families who control big businesses and ending corruptions between big businesses and politicians. Markets in Singapore and Malaysia were closed for the Vesak Day, while Thailand was shut for Wisakha Bucha Day. In Japan, largely solid earnings results and receding fears about the eurozone contributed to the gains. Still, profit-taking pressure was also weighing on the Nikkei as the index approached the key 20,000-point level. The Nikkei finished 0.29 percent or 57.09 points higher to close at 19,990.09. The benchmark ASX 200 reversed earlier losses to gain 0.61 percent or 35.50 points to close at 5,875.40 as investors digested the release of the federal budget. Meanwhile, China factory gate prices cooled more than expected in April, in a sign manufacturing activity may be losing momentum along with other sectors of the economy as domestic demand remains muted and the government cracks down on financial risks. The blue-chip CSI300 index fell 0.44 percent, to 3,337.70 points, while the Shanghai Composite Index dropped 0.9 percent to 3,052.78 points. Page 1 of 10
4. TA Securities 11-May-17 A Member of the TA Group Wall Street Mixed as Street Shrugs off Comey Firing U .S. stocks traded mixed on Wednesday as investors digested President Donald Trump's abrupt dismissal of his FBI chief as well as corporate earnings from Walt Disney and Nvidia. The Dow Jones industrial average lost ground, while the Nasdaq closed at a record high. Trump said he fired Federal Bureau of Investigation Director James Comey over his handling of an email scandal involving then-Democratic presidential nominee Hillary Clinton. The reaction to Comey's firing in the market was largely muted because a large number of investors still believe the market will get tax reform at some point. The S&P 500 eked out a record close, with energy rising more than 1 percent to lead advancers. The sector popped up after the Energy Information Administration reported a larger-than-expected drawdown in crude barrels. The Dow Jones industrial average ended lower with Disney and Boeing contributing the most losses. The media giant's stock was on track for its biggest one-day decline since June after reporting weaker than expected quarterly sales. Boeing, meanwhile, tumbled to session lows after the firm said it is temporarily suspending 737 Max flights. With first-quarter earnings season nearly over, investors were looking toward April retail sales data, due out on Friday, for new clues about the economy's health. The Dow Jones Industrial Average fell 32.67 points, or 0.16 percent, to 20,943.11, the S&P 500 gained 2.71 points to 2,399.63 and the Nasdaq Composite added 8.56 points, or 0.14 percent, to 6,129.14. Page 2 of 10
5. TA Securities 11-May-17 A Member of the TA Group News In Brief Corporate Gas Malaysia Bhd is setting aside about RM500mn in capital expenditure for its pipeline network expansion in the next three years , which includes its Natural Gas Distribution System (NGDS) network in peninsular Malaysia. The group has so far extended its NGDS network to 2,186km, servicing more areas while successfully maintaining 99% service reliability. Separately, Gas Malaysia’s net profit grew 7.5% to RM33.7mn for the first quarter ended March 31, 2017 (1QFY17) from RM31.4mn a year ago, on higher gross profit in line with the increase in volume of gas sold, coupled with lower administrative expenses. (Bursa Malaysia / The Edge) Tenaga Nasional Bhd (TNB) has signed new deals with YTL Power International Bhd (YTL Power) to extend the operations of the latter’s power plant in Paka, Terengganu. TNB announced that it had signed a new power purchase agreement and a new land lease agreement with YTL Power for the independent power producer to continue operations of its Paka power plant for a further period of three years and 10 months. The scheduled commercial date of operation in relation to the extension would be on Sept 1, 2017. (Bursa Malaysia / StarBiz) Malaysian Resources Corp Bhd (MRCB) is expected to complete by year-end the payment for its 70% stake in the joint venture with the Employees Provident Fund (EPF) to develop the RM8bn main town centre of the massive Kwasa Damansara township, thus making the partnership deal unconditional. MRCB also announced that the size of the Sungai Buloh land, coded as MX-1, was now slightly larger at 64.3 acres (compared to 64.07 acres previously) following a subdivision. The balance subscription payment for its majority stake in Kwasa Sentral Sdn Bhd, the special-purpose vehicle to develop MX-1, has also been raised from RM735mn to RM737.9mn. (Bursa Malaysia / StarBiz) Gadang Holdings Bhd’s 51%-owned joint venture company Gadang CRFG Consortium Sdn Bhd has won a major traffic dispersion and improvement job from TRX City Sdn Bhd worth RM327.9mn. China Railway First Group Co’s subsidiary, CRFG Malaysia Bhd, owns the remaining 49% in Gadang CRFG Consortium. (Bursa Malaysia / The Edge) Country Heights Holdings Bhd’s executive chairman and major shareholder Tan Sri Lee Kim Yew's fixed deposits of some RM126mn placed in a foreign-owned bank has been seized by the Inland Revenue Board. Lee notified the company via a letter dated May 8 that he "understands" the seizure was in relation to RM22.5mn worth of tax liabilities incurred by Country Height's wholly-owned unit and major subsidiary, Country Heights Sdn Bhd. (Bursa Malaysia / The Edge) PPB Group Bhd's 55%-owned engineering arm CWM Group Sdn Bhd has bagged RM50mn worth of jobs in water and sewage treatment projects in Selangor and Johor year to date, bringing its current order book to about RM200mn. (Bursa Malaysia / The Edge) Selangor Dredging Bhd (SDB), via its wholly-owned subsidiary, SDB Connect Sdn Bhd, is acquiring a 20% equity interest in Webcon Mining Sdn Bhd for RM20mn. SDB said the acquisition represents a strategic and significant entry for the company into the mining sector. (Bursa Malaysia / StarBiz) TRC Synergy Bhd has struck an agreement with Starwood Australia Hotels Pty Ltd to manage a hotel in Melbourne, Australia. Its wholly-owned subsidiary, TRC (Aust) Pty Ltd entered into a 12-year operating service agreement with Starwood Australia to run the hotel known as Element Melbourne Richmond. (Bursa Malaysia / The Edge) EKA Noodles Bhd said its unit EKA Foodstuff Sdn Bhd had fully resumed operations on Tuesday, while another unit Kilang Bihun Bersatu Sdn Bhd would fully resume operations next month. (Bursa Malaysia / StarBIz) Page 3 of 10
6. TA Securities 11-May-17 A Member of the TA Group ManagePay Systems Bhd has been appointed by a joint venture company (JVCo) formed by major taxi consortiums here known as PICK N GO Sdn Bhd as the sole card payment facilitator for the JVCo's taxi e-hailing mobile application. The appointment will see its wholly-owned unit ManagePay Services Sdn Bhd enabling participating taxi operators to accept major card payments through their new taxi e-hailing mobile application, PickNGo. (Bursa Malaysia / The Edge) Hartalega Holdings Bhd’s net profit in its fourth quarter ended March 31, 2017 (4QFY17) improved by 45.3% to RM89.4mn from RM61.6mn a year earlier. The improvement in its bottomline during the period was due to increase in sales revenue, improvement in operational efficiency, as well as reduction in operation overheads. (Bursa Malaysia / The Edge) Malaysia Smelting Corp Bhd’s net profit for its first quarter dropped by about 30% yearon-year to RM17.4mn, mainly due to the absence of a favourable inventory valuation adjustment and a higher net foreign-exchange loss. Revenue was down 0.44% to RM406.6mn from RM408.4mn a year earlier. (Bursa Malaysia / StarBiz) Page 4 of 10
7. TA Securities 11-May-17 A Member of the TA Group News In Brief Economy Global OECD Tempers Global Growth Expectations A significant pickup in global economic growth has become less likely this year as the outlooks for the U .S., U.K. and China dim, according to leading indicators released by the Organization for Economic Cooperation and Development. The Paris-based research body’s gauges of future activity, based on data for March, pointed to faster growth in Germany and Canada, but steady expansions in other large developed economies. They include the U.S. and the U.K., for which leading indicators were pointing to pickups as recently as February. The leading indicators also pointed to steady growth for China, having previously pointed to acceleration. Of the world’s major economies, only India is set to see a turn for the better, since it is no longer likely to slow and should instead record steady growth. The stalling of the OECD’s leading indicators is the latest setback for hopes that 2017 would mark a breakout year for the global economy, after a long stretch of disappointingly weak expansions. At the turn of the year, investors, business people and policy makers had expected to see a series of spending increases and tax cuts from the new U.S. administration that would deliver a boost to U.S. and global growth. But those expectations are now being reassessed. Figures released over recent weeks have recorded slowdowns during the first three months of the year in the U.S., U.K. and France, although Germany recorded a pickup. Economists expect to see a rebound during the second quarter. The OECD’s leading indicators are designed to provide early signals of turning points between the expansion and slowdown of economic activity, and are based on a variety of data series that have a history of anticipating swings in future economic activity. The changes in economic activity signaled by the indicators usually follow six to nine months after. The OECD’s composite leading indicator for its 34 members was steady at 100.1 in March. A reading below 100.0 points to growth that is slower than normal. (The Wall Street Journal) Asia IMF Raises Asia Pacific Growth Forecast to 5.5% for 2017 The International Monetary Fund (IMF) has raised its growth forecast for the Asia Pacific region to 5.5% in 2017, but warned that the near-term outlook for the region is “clouded with significant uncertainty”, adding that medium-term growth faced difficulties from a slowdown in productivity growth in both advanced economies and China. In its new Regional Economic Outlook for Asia and the Pacific, the fund said the region’s prospects “remains robust – the strongest in the world, in fact – and recent data point to a pickup in momentum.” That pickup prompted the IMF to raise its growth forecast for the region to 5.5% for 2017, up from a pace of 5.3% growth projected in October 2016. It revised 2017 growth projections for China and Japan upward to 6.6% and 1.2%, respectively, based mainly on continued policy support and strong recent readings from indicators such as purchasing managers’ indices. However, it revised its outlook for India downward to 7.2%, due to the temporary effects of its demonetisation drive, as well as for South Korea, to 2.7%, based on political uncertainty. While it expected medium-term slowdown in growth from China to be partially offset by an uptick from India, it noted that “the risks to the outlook, on balance, are still tilted to the downside” and said medium-term growth for the region “faces secular headwinds”. It noted that a slowdown in productivity growth since the financial crisis has been most severe not only in advanced economies in the region, but in China as well. It warned that without reforms, “productivity growth will likely remain low for some time, with headwinds from rapid aging becoming increasingly important.” (Financial Times) Page 5 of 10
8. TA Securities 11-May-17 A Member of the TA Group Figure 1 : Asia: Real GDP Source: IMF Regional Economic Outlook: Asia and Pacific Malaysia Petrol Prices Fall for Third Week in a Row Petrol prices have dropped for the third week in a row under the weekly pricing mechanism, with RON95 and RON97 went down by 10 sen per litre for the second week of May. The price of RON95 petrol stood at RM2.01 per litre compared with RM2.11 last week, while the price of RON97 petrol priced at RM2.29, down from RM2.39 per litre last week. The price of diesel dropped by 13 sen to RM1.95 compared with RM2.08 per litre last week. The new prices come into effect today and will remain in effect until May 17. With this price reduction, Malaysia will have the 10th cheapest petrol prices in the world, according to the website Global Petrol Prices. Prior to this reduction, Malaysia was No. 12. The Domestic Trade, Cooperatives and Consumerism Ministry posted the new weekly fuel prices on Twitter. (The Star) China Consumer Inflation Edged Up in April Consumer inflation in China remained mild in April, edging up on higher costs for rent, education and other nonfood items, while producer prices rose at a slower pace in a sign of weak underlying demand. The consumer-price index was up 1.2% from a year earlier, the National Bureau of Statistics said, accelerating from 0.9% in March and slightly outpacing the 1.1% forecast of economists polled by The Wall Street Journal. Producer prices decelerated for a second consecutive month, to a below-expectation 6.4% from March’s 7.6%. Food costs in April were down 3.5% from a year earlier, led by lower pork and vegetable prices as compared with March’s 4.4% drop. Offsetting this was a 2.4% increase in nonfood prices, including higher oil prices working their way through China’s transport and utilities sectors. First-quarter industrial profits were up 28.3% from a year earlier, slowing from the 31.5% pace for the first two months of the year, and are expected to Page 6 of 10
9. TA Securities 11-May-17 A Member of the TA Group weaken further . While commodity companies have enjoyed higher returns, many in consumer-related business have been restrained by robust competition and government controls from raising their prices to reflect higher raw-material costs. In March, the gap between the PPI and the CPI—a measure of the transmission of price increases—reached 6.7 percentage points, its widest since 1993, suggesting many downstream companies are being squeezed, according to DBS Bank. (The Wall Street Journal) Japan's Leading Index at 21-Month High Japan's leading index rose to a 21-month high in March, preliminary data from the Cabinet Office showed. The leading index, which measures the future economic activity, rose to 105.5 in March from 104.7 in February. This was the highest since June 2015. The coincident index that reflects the current economic activity, declined to 114.6 from 115.2 in the prior month. The expected reading was 114.7. The lagging index improved to 117.7 from 115.9 a month ago. Separately, total labor cash earnings in Japan decreased for the first time in ten months in March, confounding economists' forecast for an increase. Gross earnings dropped 0.4% year-over-year in March, reversing a 0.4% rise in February. Meanwhile, economists had expected a 0.5% increase for the month. Contractual gross earnings edged down 0.2% annually in March and special cash earnings declined by 3.6%. Similarly, real cash earnings slid 0.8% in March, after remaining flat in the preceding month. (RTT News) Australia Retail Sales Slide 0.1% in March Retail sales in Australia fell a seasonally adjusted 0.1% on month in March, the Australian Bureau of Statistics said - standing at A$25.630 billion. That missed forecasts for an increase of 0.3% following the downwardly revised 0.2% decline in February (originally 0.1%). By category, there were falls in food retailing (-0.5%), cafes, restaurants and takeaway food services (-0.5%), department stores (-0.6%) and household goods retailing (-0.1%). These falls were offset by rises in other retailing (1.1%) and clothing, footwear and personal accessory retailing (0.4%). By region, there were falls in Queensland (-1.3%), the Northern Territory (-1.8%), South Australia (-0.1%) and Tasmania (-0.2%). There were rises in Victoria (0.4%), New South Wales (0.1%), the Australian Capital Territory (0.3%) and Western Australia (0.1%). For the first quarter of 2017, retail sales gained 0.1% on quarter. (RTT News) Australia Budget to Log Surplus in 2020-2021 Australia's Treasurer Scott Morrison unveiled the budget 2017-18 in the parliament that comprised measures to improve housing affordability and a levy on big banks. Morrison also forecast the budget balance to return to surplus in 2020-21. The budget deficit is expected to narrow to A$29.4 billion in 2017-18 from A$37.6 billion in 2016-17. The budget is forecast to log A$7.4 billion surplus in 2020-21. The projected return to surplus comes despite considerable obstruction, Morrison said. Government payments are also forecast to fall to 25 percent of GDP in 2020-21, returning close to the 30 year historical average, he said. Net debt as a share of GDP is expected to peak in 2018-19 before declining over the remainder of the forward estimates. For infrastructure funding and financing, the government committed over A$75 billion over the next 10 years. The treasurer said the government plans to increase defense spending to 2% of GDP in 2020-21, three years ahead of what it had first promised. (RTT News) United States US April Federal Budget Surplus Rises to $182.4bn The US Federal Government recorded a surplus of $182.4bn for April following a deficit of $176.2bn the previous month. The surplus was above consensus expectations of $176bn and sharply higher than the $104.4bn recorded in April 2016. The monthly data is erratic, especially given potential shifts in payments into different months. April is usually a strong month for tax revenue given the annual tax deadline, but the headline surplus was significantly overstated for this year. The April calendar-adjusted surplus amounted to $145bn from $146bn the previous year. For the first seven months of fiscal 2016/17 the deficit declined to $344.4bn from $352.9bn for the first seven months of fiscal 2015/16. Page 7 of 10
10. TA Securities 11-May-17 A Member of the TA Group Overall receipts rose 0 .7% over the year after a strong month for April with 4.0% annual growth. Spending increased 0.3% over the year following a sharp decline in April. (Economic Calendar) U.S. Import Prices Climb for Fifth Consecutive Month in April Import prices in the U.S. rose by more than expected in the month of April, according to a report released by the Labor Department, with the increase partly reflecting a rebound in prices for fuel imports. The Labor Department said import prices climbed by 0.5% in April after a revised 0.1% uptick in March. Economists had expected import prices to rise by 0.2% compared to the 0.2% drop originally reported for the previous month. The bigger than expected increase in imports prices came as prices for fuel imports jumped by 1.6% in April after sliding by 0.9% in March. Significant increases in prices for both petroleum and natural gas contributed to the rebound in overall fuel prices. Excluding fuel prices, import prices still rose by 0.3% in April compared to the 0.2% increase seen in March. The Labor Department said higher prices for non-fuel industrial supplies and materials, foods, feeds, and beverages, and each of the major finished goods categories all contributed to the increase. (RTT News) US Wholesale Inventories Rise in March, Sales Flat U.S. wholesale inventories increased in March amid flat sales, confounding the government's initial estimate of a modest dip. The Commerce Department said wholesale inventories rose 0.2% after increasing 0.3% in February. The department reported last month that wholesale inventories slipped 0.1% in March. Auto inventories increased 1.9%. Wholesale stocks of electrical goods surged 2.3%, the biggest gain since January 2015. Professional equipment inventories rose 1.0% in March. The component of wholesale inventories that goes into the calculation of gross domestic product — wholesale stocks excluding autos — were unchanged in March. A report last week showed inventories at factories were flat in March after rising 0.2% in February. Inventory investment subtracted 0.93 percentage point from GDP in the first quarter, helping to hold down the economy to a 0.7% annualized growth pace, the weakest performance in three years. Inventories had contributed to GDP growth for two straight quarters. Sales at wholesalers were unchanged in March after climbing 0.7% in February. Sales of electrical goods fell 0.3% while those of professional equipment tumbled 1.8%. At March's sales pace it would take wholesalers 1.28 months to clear shelves, unchanged from February. The ratio has declined from 1.36 months in January and February last year, which was the highest since January 2009. (CNBC) Hiring and Job Opening Rates Held Steady During Weak Month of March The Labor Department’s main jobs report in March showed a small slump in hiring, but a secondary jobs report for that month, showed little change in the labor market’s underlying momentum. The secondary report — the Job Openings and Labor Turnover Survey, known as Jolts — tracks the monthly pace at which people start jobs, quit jobs, or are laid off, and the number of job openings. For March, the report showed little change from previous months across all its main rates, despite that downdraft in the main report. Subsequent data has shown the labor market rebounded in April. That rebound, combined with Tuesday’s Jolts report, may imply that the weak month of March was largely a fluke. One popular measure in the report is the number of job seekers per job opening. The latest report shows there are 1.25 seekers per opening, compared to a peak of more than six per opening in 2009 during the recession. That ratio has moved down slightly over the past year, but mostly because the number of unemployed people has been shrinking and not because the number of openings has been rising. (The Wall Street Journal) The $2 Trillion Question in Trump’s New Tax Plan The Trump administration says a middle-class tax cut is at the center of its tax plan. But doing the arithmetic to figure out what middle-class families would pay is close to impossible. President Donald Trump’s plan is silent so far on crucial details Americans need to calculate their tax bills, including the personal exemption and the size of the tax brackets. Mr. Trump’s plans have become less clear and less easy to calculate since the presidential Page 8 of 10
11. TA Securities 11-May-17 A Member of the TA Group campaign . Back in September 2015, well before the first Republican primary, his tax plan was a model of simplicity for middle-income households. Individuals making under $25,000, single parents making under $37,500 and married couples making under $50,000 would get a new form from the Internal Revenue Service. They could literally write the words “I win” and pay nothing, the plan said. What Mr. Trump proposed then was expanding what tax experts call the 0% tax bracket, a central way the U.S. makes its tax system progressive. It is a politically attractive and economically logical idea: Don’t make people pay income taxes on money they need for basic living expenses. Under that original plan, 63% of Americans would pay no income tax compared with 44% in 2016, according to the Tax Policy Center, a project of the Brookings Institution and Urban Institute. (The Wall Street Journal) Europe and United Kingdom Mario Draghi Brushes Off Calls to End ECB’s Monetary Stimulus European Central Bank President Mario Draghi defended the ECB’s monetary stimulus before Dutch lawmakers in a rare visit to a national parliament, as pressure builds in Northern Europe for a policy change from Frankfurt. Speaking in the Dutch Lower House, Mr. Draghi argued that the ECB’s large-scale bond purchases and subzero rates have helped support local households and the national budget. He emphasized that the policies would remain in place for now, brushing off calls for a swift exit. “It is too early to declare success,” Mr. Draghi said, pointing to weak core inflation and wage growth. “Maintaining the current very substantial degree of monetary [stimulus] is still needed for underlying inflation pressures to build up.” The visit to The Hague comes at a sensitive time for the ECB, which is considering when to start winding down its €60 billion ($65.22 billion) monthly bondpurchasing program, known as quantitative easing. The program is currently due to run at least through December. (The Wall Street Journal) Germany's Exports Rise More than Forecast Germany's exports increased more than expected and imports rebounded in March, data from Destatis revealed. Exports grew 0.4% in March from the prior month, faster than the expected 0.2% rise. However, the monthly rate eased from 0.9%. At the same time, imports climbed 2.4% in March after declining 1.6% in February. Imports were expected to rise moderately by 1.6%. As a result, the trade surplus declined to a seasonally adjusted EUR 19.6 billion from EUR 21.2 billion in the prior month. On an unadjusted basis, the trade surplus dropped to EUR 25.4 billion from EUR 25.8 billion in the prior year. Meanwhile, the current account surplus rose to EUR 30.2 billion from EUR 20.7 billion in February. This was also bigger than prior year's EUR 29.1 billion. Year-on-year, growth in exports accelerated to 10.8% from 3.2%. Likewise, imports advanced 14.7% following a 3.7% rise in February. (RTT News) Germany's Industrial Production Falls Less than Forecast Germany's industrial production decreased at a slower-than-expected pace in March, data from Destatis showed. Industrial production fell 0.4 percent month-over-month in March, reversing a 1.8% rise in February, which was revised down from a 2.2% gain reported earlier. Economists had expected a 0.7% decline for March. Within industry, production of capital goods dropped 1.2% in March and those of consumer goods remained at the same level of the prior month. Energy production registered a fall of 2.5%, while production in construction grew by 1.5%. (RTT News) Page 9 of 10
12. TA Securities 11-May-17 A Member of the TA Group Share Buy-Back : 09 May 2017 Company FIAMMA FITTERS IOIPG TCHONG TEXCHEM UNIMECH Bought Back Price (RM) Hi/Lo (RM) 200,000 100,000 2,000,000 1,000 2,000 4,000 0.575/0.57 0.41 2.11/2.10 1.86 1.45 1.17/1.16 0.575/0.57 0.41/0.405 2.12/2.09 1.88/1.86 1.46/1.42 1.18/1.16 Total Treasury Shares 14,960,000 18,351,900 19,110,400 19,338,000 2,541,200 6,259,010 Source: Bursa Malaysia 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. 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 Page 10 of 10 We accept no
13. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 05-May-17 2.14 2.55 5.90 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 2.36 2.04 5.12 0.96 0.58 1.23 10.8 22.7 17.7 15.8 23.8 27.6 19.9 11.3 33.4 13.6 10.7 21.4 5.6 3.5 1.9 7.3 3.5 3.1 2.44 2.70 7.00 -12.3 -5.6 -15.7 1.95 1.95 4.43 9.7 30.8 33.2 0.5 19.2 29.1 4.10 3.40 5.40 6.10 15.80 9.20 22.10 4.70 10.00 1.28 0.96 1.33 1.34 0.66 0.96 0.80 1.31 0.71 35.8 29.4 46.4 50.6 101.3 73.6 136.6 49.0 40.3 37.7 33.1 50.6 55.6 109.8 82.6 140.4 51.7 39.0 12.2 10.1 12.0 11.6 13.6 12.7 14.6 11.2 24.8 11.6 8.9 11.0 10.5 12.6 11.3 14.2 10.6 25.6 3.4 2.7 2.9 3.5 3.0 5.3 2.8 2.2 3.4 3.4 2.7 3.2 3.8 3.0 5.3 2.9 2.2 3.4 4.38 3.00 5.70 5.96 14.00 9.68 20.58 5.59 10.38 0.0 -1.3 -2.6 -1.8 -1.3 -3.3 -2.9 -2.3 -3.9 3.60 2.08 3.90 4.11 12.70 7.50 18.72 4.46 8.20 21.7 42.3 42.3 42.3 8.8 24.8 6.7 22.4 21.7 17.7 23.8 28.8 29.7 2.4 14.1 1.3 15.9 12.8 0.44 1.28 5.33 3.56 1.01 2.08 2.23 5.92 0.49 1.62 5.49 3.27 0.58 1.90 1.50 5.58 0.80 0.68 1.06 1.09 1.21 na 1.11 0.12 5.7 14.6 31.6 16.8 9.6 12.6 11.9 44.3 5.7 13.5 36.4 20.9 9.9 12.5 11.8 45.8 7.6 8.8 16.9 21.2 10.5 16.4 18.8 13.4 7.6 9.5 14.7 17.0 10.2 16.6 18.9 12.9 0.0 2.2 2.3 2.7 1.0 2.6 1.3 4.2 2.3 2.2 2.3 2.7 1.0 2.6 1.3 4.2 0.51 1.35 5.36 3.61 1.05 2.13 2.49 6.13 -14.7 -5.3 -0.6 -1.4 -3.8 -2.3 -10.4 -3.4 0.36 0.80 4.64 3.07 0.41 1.42 1.41 5.15 20.8 60.8 14.9 16.0 149.4 46.5 58.2 15.0 0.0 21.9 11.5 11.3 75.7 22.4 28.9 0.7 1.99 2.00 0.46 15.4 15.6 12.9 12.7 5.0 5.0 2.40 -17.1 1.93 3.1 -1.0 14.72 18.12 15.41 21.08 0.53 0.57 69.6 93.1 77.5 21.1 101.9 19.5 19.0 17.8 4.7 4.6 5.2 5.1 15.30 18.74 -3.8 -3.3 12.52 14.58 17.6 24.3 5.7 10.6 2.43 7.65 24.68 83.00 3.44 1.81 4.95 1.01 2.23 9.59 27.41 88.66 3.76 2.74 4.17 1.10 0.49 0.35 0.36 0.37 0.50 0.69 0.43 0.58 6.5 35.9 120.5 293.6 22.3 25.1 12.7 9.3 7.5 40.5 148.1 326.2 24.7 25.3 15.8 12.8 37.4 21.3 20.5 28.3 15.4 7.2 39.0 10.9 32.2 18.9 16.7 25.4 13.9 7.1 31.4 7.9 0.8 3.9 2.8 3.3 4.4 4.4 0.9 5.0 0.9 5.0 3.0 3.4 4.9 4.4 1.0 5.0 3.00 9.53 27.00 83.68 3.58 2.04 4.95 1.07 -19.0 -19.7 -8.6 -0.8 -3.9 -11.3 0.0 -5.6 2.11 7.30 22.44 74.12 2.13 1.43 4.14 0.78 15.2 4.8 10.0 12.0 61.5 26.6 19.5 29.5 -5.4 4.4 5.1 6.1 34.9 4.6 14.3 27.0 45.02 52.08 1.05 198.6 187.4 22.7 24.0 4.4 4.4 55.64 -19.1 40.61 10.9 1.9 9.72 5.74 10.34 6.10 1.35 1.27 45.0 25.7 51.0 27.9 21.6 22.3 19.0 20.6 0.5 1.4 0.6 1.6 10.00 6.07 -2.8 -5.4 7.50 4.17 29.6 37.5 22.3 27.0 2.77 0.14 3.81 0.10 0.72 1.34 22.1 0.2 24.6 0.3 12.5 70.9 11.2 46.4 5.8 0.0 6.9 0.0 3.42 0.15 -19.0 -3.4 2.73 0.05 1.5 180.0 -6.4 180.0 6.18 4.18 6.40 4.61 0.78 0.52 13.9 13.3 17.9 16.5 44.5 31.4 34.4 25.4 0.7 1.5 0.7 1.8 6.79 4.37 -9.0 -4.3 5.78 3.85 6.9 8.6 -2.7 0.0 5.39 6.30 2.10 5.04 2.12 6.05 6.80 1.90 5.05 2.55 0.57 0.12 0.30 -0.22 0.28 19.5 35.8 16.2 26.6 4.3 24.4 40.5 18.3 30.2 7.1 27.7 17.6 12.9 19.0 49.4 22.1 15.6 11.5 16.7 30.0 1.5 2.8 2.3 2.6 0.5 2.0 3.2 2.6 3.0 0.8 5.47 7.07 2.73 5.45 2.64 -1.5 -10.9 -23.1 -7.5 -19.7 3.87 5.62 1.88 4.20 1.96 39.3 12.1 11.7 20.0 8.2 11.6 -4.4 -0.5 -5.8 -10.2 INDUSTRIAL SCIENTX SKPRES 8.43 1.28 8.50 1.75 0.57 0.48 67.9 9.1 78.0 14.1 12.4 14.1 10.8 9.1 2.5 3.4 2.8 5.3 8.99 1.44 -6.2 -11.1 5.90 1.12 42.9 14.3 25.8 -0.8 MEDIA ASTRO MEDIA PRIMA STAR 2.70 1.09 2.52 3.20 0.95 2.30 1.03 0.69 0.63 13.2 7.8 14.8 14.5 8.1 15.6 20.4 14.0 17.1 18.7 13.5 16.2 4.6 5.7 7.1 4.8 6.0 7.1 3.01 1.52 2.70 -10.3 -28.3 -6.7 2.56 1.00 2.20 5.5 9.0 14.5 3.8 -5.2 12.5 0.45 0.84 7.03 0.44 6.05 1.29 0.61 32.6 14.3 4.6 47.1 18.3 47.3 3.3 -4.8 4.9 0.0 43.8 2.6 17.3 -28.6 1.30 38.5 5.9 BANKS & FINANCIAL SERVICES AFG 4.38 AFFIN 2.96 AMBANK 5.55 CIMB 5.85 HLBANK 13.82 MAYBANK 9.36 PBBANK 19.98 5.46 RHBBANK BURSA 9.98 CONSTRUCTION BPURI GADANG GAMUDA IJM SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N 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 EATECH 0.59 0.45 1.04 11.5 11.9 5.1 4.9 0.0 0.0 1.18 -50.0 MHB 0.96 0.95 1.81 -1.2 1.3 na 73.3 0.0 0.0 1.23 -22.0 MISC 7.35 7.65 0.82 56.8 54.7 12.9 13.4 4.1 4.1 7.84 -6.3 PANTECH 0.64 0.69 1.28 4.1 5.0 15.4 12.8 2.8 3.1 0.67 -3.8 PCHEM 7.16 7.91 1.06 34.7 39.3 20.6 18.2 2.7 2.7 7.80 -8.2 SENERGY 1.90 2.02 2.42 5.3 4.6 36.2 41.0 0.0 0.0 2.10 -9.5 UMWOG 0.63 0.80 2.01 -12.0 -3.6 na na 0.0 0.0 1.04 -39.9 Note: UMWOG proposed 14 for 5 rights issue shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.80 1.40 1.39 11.3 12.2 16.0 14.7 0.0 0.0 2.02 -10.9
14. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 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 1.88 3.08 4.59 24.80 9.31 6.18 1.53 3.88 3.93 22.75 8.24 7.52 1.80 0.46 1.09 0.91 1.25 0.50 6.3 13.7 18.7 111.8 30.8 32.7 11.1 15.7 21.1 119.1 35.3 34.5 29.6 22.5 24.5 22.2 30.3 18.9 16.9 19.6 21.8 20.8 26.4 17.9 2.7 2.3 2.2 2.2 2.4 2.6 2.7 2.6 2.6 2.4 3.0 2.8 2.52 3.70 4.81 25.50 9.55 6.51 -25.4 -16.8 -4.6 -2.7 -2.5 -5.1 1.31 3.00 4.07 22.62 7.10 5.53 43.5 2.7 12.8 9.6 31.1 11.8 21.3 -9.4 4.3 3.3 14.9 3.0 0.70 1.09 0.86 2.10 1.54 0.77 3.69 3.62 0.69 1.07 1.00 2.10 1.60 0.80 4.10 3.40 0.65 0.66 0.33 0.93 0.71 0.29 0.67 0.49 3.4 20.0 7.3 14.7 14.5 6.4 25.6 27.2 7.0 17.4 11.2 15.3 12.5 9.7 22.8 29.1 20.2 5.4 11.8 14.3 10.6 12.0 14.4 13.3 9.9 6.2 7.7 13.7 12.3 7.9 16.2 12.5 5.8 3.7 4.1 3.3 3.9 1.3 3.8 3.3 5.8 3.2 4.7 3.6 3.6 1.3 3.8 3.3 0.83 1.43 1.05 2.46 1.70 1.00 3.77 3.66 -15.8 -23.9 -18.6 -14.6 -9.4 -23.5 -2.1 -1.1 0.68 1.05 0.85 1.85 1.34 0.69 2.80 2.84 2.2 3.8 1.2 13.7 14.9 10.9 31.8 27.4 0.0 -3.5 -14.5 7.7 7.7 -4.4 17.9 20.7 1.72 1.48 1.86 1.72 0.54 0.59 8.9 8.1 10.1 8.6 19.4 18.3 17.0 17.2 5.2 5.7 5.9 6.0 1.84 1.72 -6.5 -14.0 1.60 1.44 7.5 2.8 0.0 -3.3 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.24 24.00 18.50 13.90 1.51 1.45 20.19 19.02 17.37 1.81 0.72 0.75 0.76 1.02 0.58 6.6 98.4 88.2 131.9 8.8 6.1 102.3 101.3 130.8 10.6 18.8 24.4 21.0 10.5 17.3 20.2 23.5 18.3 10.6 14.3 5.6 3.0 3.3 3.2 6.6 5.6 3.2 3.8 3.3 6.6 1.80 25.70 22.66 14.90 1.64 -31.1 -6.6 -18.4 -6.7 -7.9 1.14 22.50 18.10 13.00 1.38 8.8 6.7 2.2 6.9 9.4 -9.5 0.8 -13.1 0.0 1.3 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.25 5.07 6.55 6.48 5.25 4.95 5.95 6.95 1.26 0.95 0.71 0.68 16.7 20.8 25.1 21.4 17.6 21.1 25.4 22.3 31.4 24.3 26.1 30.2 29.8 24.0 25.7 29.1 1.6 4.1 3.1 3.0 1.7 4.2 3.1 3.1 5.99 5.19 6.56 6.90 -12.4 -2.3 -0.2 -6.1 4.11 4.36 5.36 5.81 27.7 16.3 22.2 11.5 11.2 5.0 9.5 8.9 TECHNOLOGY Semiconductor & Electronics IRIS 0.19 INARI 2.11 MPI 12.84 UNISEM 3.52 0.14 2.35 13.15 3.55 1.43 0.78 0.50 0.82 -1.2 10.5 94.2 26.9 0.9 na 12.6 20.1 115.7 13.6 29.1 13.1 21.0 16.8 11.1 12.1 0.0 2.0 2.1 3.4 0.0 2.3 2.1 3.4 0.24 2.13 13.06 3.54 -20.8 -0.9 -1.7 -0.6 0.10 1.28 7.02 2.20 90.0 64.6 82.9 60.0 72.7 27.1 73.3 49.2 3.43 8.10 3.02 8.10 1.16 1.45 33.5 17.2 34.9 17.5 10.2 47.0 9.8 46.3 1.2 1.2 1.5 1.2 3.49 8.31 -1.7 -2.5 2.06 5.76 66.5 40.6 49.8 33.7 1.75 3.92 1.88 4.51 0.81 0.68 15.4 19.3 21.5 17.4 11.3 20.3 8.1 22.5 3.1 3.7 4.0 3.3 1.87 4.59 -6.4 -14.6 1.23 3.74 42.3 4.8 10.1 -8.8 PROPERTY GLOMAC HUAYANG IBRACO IOIPG MAHSING SNTORIA SPSETIA SUNWAY REIT SUNREIT CMMT TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 20.50 OCBC 10.46 UOB 23.55 PLANTATIONS WILMAR IFAR 3.47 0.50 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 21.40 11.10 23.60 1.23 1.13 1.09 173.8 87.8 195.7 190.2 11.8 92.5 11.9 209.4 12.0 10.8 11.3 11.2 2.9 5.7 3.0 2.9 6.7 3.0 20.8 10.5 23.6 -1.6 0.0 0.0 14.63 8.84 17.41 40.1 27.4 35.3 18.2 17.3 15.4 3.45 0.53 0.90 1.11 28.9 3.9 31.1 4.3 11.2 11.6 2.3 1.9 2.6 2.1 4.0 0.6 -13.3 -16.8 2.96 0.44 17.2 12.5 -3.3 -5.7 12.0 12.6 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. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
15. 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 Thursday, May 11, 2017 FBMKLCI: 1,766.56 Sector: Construction TP: RM1.62(+26.6%) Last traded: RM1.28 Secure Jalan Tun Razak Traffic Dispersal and Road Upgrading Works Package BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Ooi Beng Hooi Tel: 603-2167-9612 benghooi@ta.com.my Gadang CRFG Consortium Sdn Bhd, a 51:49 JV company between Gadang and CRFG Malaysia Berhad (a wholly-owned subsidiary of China Railway First Group), has accepted the award of contract from TRX City Sdn Bhd to undertake the construction works for Package 2 of Jalan Tun Razak traffic dispersal and upgrading works (between Jalan Langgak Golf and Kampung Pandan roundabout), for a contract sum of RM327.9mn. Our View This is the second construction job secured by Gadang before ending FY17. This brings the total amount of new construction contracts secured in FY17 to RM1,119.3mn (RM952.1mn for MRT line 2 works package V206 and 51% effective stake in Jalan Tun Razak package 2) www.taonline.com.my Share Information Bl oombe rg Code GADG MK Burs a GADANG Stock Code 9261 Li s ti ng Ma i n Ma rket Sha re Ca p (mn) 654.3 Ma rket Ca p (RMmn) 837.5 Pa r Va l ue 0.50 52-wk Hi /Lo (RM) 1.35/0.80 12-mth Avg Da i l y Vol ('000 s hrs ) 6675.7 Es ti ma ted Free Fl oa t (%) 64.8 Beta 0.68 Major Shareholders (%) Mel ori a Sdn Bhd - 13.37 Sumber Ra s wi ra Sdn Bhd - 12.44 Forecast Revision With this new job win, we estimate Gadang’s outstanding order book improves to RM1.5bn, translating into 3.1x FY16 construction revenue. This could provide earnings visibility to the construction division for the next 4 years. Foreca s t Revi s i on (%) Net profi t (RMm) Cons ens us TA's / Cons e ns us (%) Previ ous Ra ti ng FY17 FY18 2.8 95.4 88.0 92.7 93.6 102.9 94.0 Buy (Ma i nta i ne d) Assuming an operating margin of 8%, we expect the project to generate a net profit of RM10.2mn, or 1.6sen/share throughout the construction period. Financial Indicators Impact Following the job win, we upgrade FY18 and FY19 earnings forecasts by 2.8% and 4.7% respectively as it exceeded our order book replenishment assumption of RM952mn for FY17. Net 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 (9.5) 3.0 (13.5) 42.7 7.9 9.0 0.9 1.0 1.5 1.3 Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth GADANG FBM KLCI (3.0) 1.6 17.4 4.0 27.0 6.9 52.4 8.0 Valuation Subsequent to the revision in earnings forecasts, we raise the target price from RM1.55 to RM1.62, based unchanged on 14x CY18 construction earnings, 8x CY18 property earnings, 12x CY18 utility earnings, and assigned value of oil palm plantation landbank of RM25k/ha. Maintain BUY call on the stock. (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg Page 1 of 2
16. TA Securities 11-May-17 A Member of the TA Group Financial Statements Profit & Loss (RMmn) YE May 31 Revenue EBITDA Dep. & amortisation Finance cost PBT Core PBT Taxation MI PATAMI Core PATAMI Core EPS (sen)* GDPS (sen)* Div yield (%) FY15 587.4 92.9 (5.6) (2.5) 84.8 84.8 (24.0) 1.2 59.6 59.6 11.2 2.0 1.6 FY16 676.1 126.6 (6.1) (2.6) 124.1 124.1 (29.4) 0.4 94.2 94.2 16.3 2.8 2.2 FY17F 567.6 141.1 (8.1) (3.5) 129.5 129.5 (33.0) 1.1 95.4 95.4 14.8 2.8 2.2 FY18F 735.0 133.0 (9.5) (3.6) 119.9 119.9 (30.6) 1.3 88.0 88.0 13.6 2.8 2.2 FY19F 853.4 162.3 (11.8) (2.9) 147.7 147.7 (37.7) 3.3 106.7 106.7 16.5 2.8 2.2 Cash Flow (RMmn) YE May 31 PBT Dep. & amortisation Other adjustments Changes in WC Income tax Operational cash flow Capex Others Investment cash flow Debt raised/ (repaid) Equity raised/ (repaid) Dividend Others Financial cash flow Net cash flow Opening cash Forex adjustment Ending Cash FY15 84.8 23.1 4.5 8.9 (28.1) 93.2 (28.6) (14.8) (43.4) 104.0 32.4 (8.7) (81.9) 45.9 95.7 76.2 (1.8) 170.1 FY16 124.5 24.9 (3.9) (121.0) (26.6) (2.1) (3.2) (2.8) (6.0) 85.9 62.2 (11.8) (67.6) 68.7 60.6 170.1 1.8 232.5 FY17F 129.5 8.1 (3.5) (79.1) (33.0) 21.9 (3.5) (20.0) (23.5) 9.7 0.0 (9.1) 3.5 4.1 2.5 232.5 0.0 235.0 FY18F 119.9 9.5 (3.6) (107.2) (30.6) (12.0) (2.8) (20.0) (22.8) 9.7 0.0 (9.1) 3.6 4.3 (30.6) 235.0 0.0 204.5 FY19F 147.7 11.8 (2.9) (30.2) (37.7) 88.7 (2.8) (20.0) (22.8) (50.0) 0.0 (9.1) 2.9 (56.2) 9.7 204.5 0.0 214.2 Balance Sheet (RMmn) YE May 31 Fixed assets Concession assets Others Total NCA Cash & equivalents Others CA FY15 FY16 93.1 76.4 46.1 61.3 53.2 74.0 192.3 211.7 232.7 187.6 401.1 823.4 633.8 1,011.1 Total Assets 826.1 1,222.8 1,077.6 1,156.6 1,208.6 ST debt Others CL 101.2 232.4 333.6 55.8 319.6 375.4 89.3 207.7 297.0 91.2 195.9 287.1 91.2 195.9 287.1 LT borrowings Others LT Liabilities 91.8 12.3 104.1 167.0 144.1 311.0 143.2 13.5 156.7 151.0 14.4 165.4 101.0 15.4 116.4 Share cap Reserves NCI Shareholders' fund Total Equity Total Equity & Liabilities 216.4 165.0 7.0 381.4 388.4 826.1 258.6 270.5 7.3 529.1 536.4 1,222.8 323.3 292.2 8.4 615.5 623.8 1,077.6 323.3 371.1 9.7 694.4 704.1 1,156.6 323.3 468.8 13.0 792.1 805.0 1,208.6 Ratio YE May 31 EBITDA margin (%) Core EPS (sen)* EPS Growth (%) PER (x) GDPS (sen)* Div Yield (%) Net cash (RMm) Net gearing (x) ROE (%) ROA (%) NTA/share (RM)* P/NTA (x) FY15 15.8 11.2 26.9 11.5 2.0 1.6 FY17F 78.4 75.2 73.6 227.2 190.2 660.2 850.4 FY16 19.5 16.4 46.8 7.8 2.8 2.2 FY17F 24.9 14.8 (9.9) 8.7 2.8 2.2 FY18F 79.6 87.7 73.2 240.5 159.6 756.5 916.1 FY19F 80.8 98.9 71.8 251.5 169.3 787.7 957.1 FY18F 18.1 13.6 (7.8) 9.4 2.8 2.2 FY19F 19.0 16.5 21.3 7.8 2.8 2.2 39.6 71.5 64.3 24.1 83.8 net cash net cash net cash net cash net cash 17.5 20.8 16.7 13.4 14.4 8.5 9.3 8.3 7.9 9.0 0.6 0.7 0.8 0.9 1.0 2.2 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. 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
17. R E S U L T S UPDATE TA Securities Thursday , May 11, 2017 FBM KLCI: 1,766.56 Sector: Healthcare A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Hartalega Holdings Berhad TP: RM6.05 (+12.2%) Last traded: RM5.39 4QFY17 Partly Offset by Surge in Raw Material Prices BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Wilson Loo Tel: +603-2167 9606 wilsonloo@ta.com.my Review Hartalega’s FY17 core net profit of RM320.2mn (+25.1% YoY) was within ours but above consensus estimates at 97.4% and 113.4% respectively. Core net profit excludes losses of RM37.2mn arising mainly from the revaluation of USD denominated loans followed by foreign exchange and derivative losses. YoY, FY17’s revenue and adjusted PBT respectively increased by 21.6% to RM1.8bn and 22.3% to RM385.9mn. The robust growth was on the back of sales volume growth of 24.1% YoY and support from the strengthening of the USD against the Ringgit. Overall plant utilisation rates were optimal at 87% (+6.0%-points YoY). QoQ, revenue grew by 15.5% to RM527.0mn mainly on sales volume growth of 13.8% and higher average selling prices in Ringgit by 4.7%. Adjusted PBT however, grew at a slower pace of 7.9% QoQ to RM116.0mn due to the surge in raw material prices (nitrile butadiene rubber by +33.5% QoQ and natural rubber latex by +31.0% QoQ) during the quarter. Correspondingly, adjusted PBT margins declined by 1.6%-points to 22.0%. Of note, 4QFY17’s effective tax rate of 24.5% was slightly over the statutory tax rate of 24% due to the overutilization of tax allowances. Nevertheless, management continues to foresee effective tax rate in the foreseeable term to be below the statutory tax rate. Similar to 4QFY16, a third interim dividend of 2.0sen per share was declared, bringing YTD dividends to 6.0sen per share. Based on the group’s dividend policy which targets a minimum payout of 45%, we could anticipate a final dividend of circa 2.0sen per share. Impact Our FY18/FY19 earnings estimates are adjusted by +0.8%/+0.9% after imputing FY17’s figures into our model. We also introduce our FY20 earnings estimates of RM544.0mn. Outlook We remain sanguine on the group’s on-going expansion ambitions at the Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang. Prospective capacity from the NGC is expected to propel the group’s capacity from 23.6bn gloves/annum as at 4QFY17 to 40.7bn gloves/annum by FY21, representing a CAGR of 15%. Taking comfort, management guided that notwithstanding the competitive environment, the group’s increased marketing efforts and growing product range are bearing fruit with order visibility currently at 3 to 4 months. Our projections suggest FY18/FY19/FY20’s earnings growing at 25%/18%/15%. Share Information Bloomberg Code HART MK Stock Code 5168 Listing Main Market Share Cap (mn) 1643.6 Market Cap (RMmn) 8,858.8 Par Value 0.50 52-wk Hi/Lo (RM) 5.47/3.87 12-mth Avg Daily Vol ('000 shrs) 1,007.6 Estimated Free Float (%) 29.9 Beta 0.6 Major Shareholders (%) Hartalega Industries Sdn Bhd - 49.2 EPF - 7.5 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 0.8 0.9 401.6 472.4 342.3 382.3 117.3 123.6 Buy (Maintained) Financial Indicators Net gearing (x) CFPS (sen) P/CFPS (x) ROAA (%) ROAE (%) NTA/Share (RM) Price/ NTA (x) FY18 0.1 23.6 22.8 16.4 22.4 1.1 4.7 FY19 0.1 30.1 17.9 17.0 23.2 1.3 4.2 % of FY 97.4 113.4 Within Above Hartalega 10.5 13.0 8.5 38.2 FBM KLCI 1.6 4.0 6.9 8.0 Scorecard vs TA vs Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBM KLCI Key risks to our projetions are volatilities to the USD/Ringgit and raw material prices. Nonetheless, we note that lately the group has been able to respond better to these volatilities owing to its prudent measure to increase the frequency of reviewing selling prices to every month as well as the market’s improved adaptations to volatilities. Source: Bloomberg Page 1 of 3 www.taonline.com.my
18. TA Securities 11-May-17 A Member of the TA Group Valuation Our TP for Hartalega is maintained at RM6 .05/share. This is based on an unchanged PE multiple of 22.0x against CY18 EPS. We continue to like the group for its: 1) manufacturing capabilities, 2) superior margins, and 3) earnings growth prospects. Key risks to our call include: 1) volatile fluctuations in raw material prices and 2) sustaining high utilisation rates amidst capacity expansion. Reiterate Buy. Figure 1: Forward PER x 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 +1SD: 27.6x Average: 22.6x Mar-17 Sep-16 Dec-16 Jun-16 Dec-15 Mar-16 Jun-15 Sep-15 Mar-15 Dec-14 Jun-14 Sep-14 Mar-14 Sep-13 Dec-13 Jun-13 Dec-12 Mar-13 Jun-12 Sep-12 -1SD: 17.6x Source: Companies, TA Securities Table 1: Earnings Summary (RMmn) FYE Mar 31 Revenue EBITDA Depreciation & amortisation Net finance cost EI PBT Taxation MI Net profit (-MI) Core net profit (-MI) EPS (sen) EPS growth (%) PER (x) DPS (sen) Dividend yield (%) FY16 1,498.3 385.3 -70.6 0.9 1.3 316.9 -59.1 -0.4 257.4 256.1 15.6 22.7 34.6 8.0 1.4 FY17 1,822.1 456.5 -70.6 0.0 -37.2 348.7 -65.3 -0.4 283.0 320.2 17.1 10.0 31.5 7.9 1.5 FY18F 2,311.1 561.6 -83.9 0.6 0.0 478.2 -76.5 -0.1 401.6 401.6 24.3 41.9 22.2 10.9 2.0 FY19F 2,664.6 657.8 -95.7 0.3 0.0 562.5 -90.0 -0.1 472.4 472.4 28.5 17.6 18.9 12.8 2.4 FY20F 3,001.7 753.5 -106.8 1.1 1.0 647.7 -103.6 -0.1 544.0 543.0 32.9 15.2 16.4 14.8 2.7 Table 2: FY17 Results Analysis (RMmn) FYE Mar 31 Revenue EBITDA Depreciation & Amortisation Net finance cost EI PBT Adj PBT Taxation MI Net profit (-MI) Core net profit (-MI) Margins EBITDA margin (%) PBT margin (%) Adjusted PBT margin (%) Tax rate (%) Net profit margin (%) Core net profit margin (%) 4QFY16 400.5 72.7 -21.1 0.4 18.7 70.7 52.0 -9.2 0.0 61.5 42.7 3QFY17 456.3 125.1 -17.5 -0.1 -29.2 78.3 107.5 -11.9 -0.2 66.2 95.4 4QFY17 527.0 135.4 -19.2 -0.2 2.5 118.5 116.0 -29.1 0.0 89.4 86.9 QoQ (%) 15.5 8.2 10.0 29.3 -108.5 51.3 7.9 143.7 -93.1 35.0 -8.9 YoY (%) 31.6 86.4 -8.7 -139.9 -86.8 67.6 123.3 216.6 -75.0 45.4 103.4 FY16 1,498.3 385.3 -70.6 0.9 1.3 316.9 315.6 -59.1 -0.4 257.4 256.0 FY17 1,822.1 456.5 -70.6 0.0 -37.2 348.7 385.9 -65.3 -0.4 283.0 320.2 YoY (%) 21.6 18.5 0.0 -100.3 -2,905.5 10.0 22.3 10.5 -7.3 10.0 25.1 18.1 17.7 13.0 13.0 15.4 10.7 27.4 17.2 23.6 15.2 14.5 20.9 25.7 22.5 22.0 24.5 17.0 16.5 %-points -1.7 5.3 -1.6 9.3 2.5 -4.4 %-points 7.5 4.8 9.0 11.5 1.6 5.8 25.7 21.1 21.1 18.7 17.2 17.1 25.1 19.1 21.2 18.7 15.5 17.6 %-points -0.7 -2.0 0.1 0.1 -1.6 0.5 Page 2 of 3
19. TA Securities 11-May-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) 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. 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 3 of 3
20. TA Securities RESULTS UPDATE Tuesday , May 09, 2017 STI: 3,236.98 A Member of the TA Group Sector: Finance MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Overseas-Chinese Banking Corp. TP: S$ 11.10 (+7.8%) Last Traded: S$ 10.30 Wealth Management Rises to New Highs HOLD THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Tel: +603-2167 9610 liwong@ta.com.my Review Alongside peers, OCBC posted a stronger set of 1QFY17 results. Registering QoQ and YoY increases, 1Q net profit accelerated to S$973mn. Net profit came within expectations as it accounted for 26% and 27% of ours and consensus estimates. ROE widened to 10.8% in 1QFY17 from 10.1% a year ago. Net interest income (NII) continued its descent, falling by 2.7% YoY to S$1,272mn as strong asset growth was offset by a decline in the net interest margin (NIM) owing to compression in loan yields and lower LDR. Advances in loans were broad-based across most industry segments and key markets. Rising 8% YoY and 2% QoQ, loan growth was underpinned by increases in Indonesia (+12% YoY, +4% QoQ), Singapore (+8% YoY, +2% QoQ) and Greater China (+4% YoY, flat QoQ). In constant currency terms, loan volumes climbed 8% YoY (+4% QoQ) on the back of higher housing loans, other consumer-related loans and loans to the financial sector. Net interest margin (NIM) slipped 1 bp QoQ and 13 bps YoY to 1.62%. Lower customer loan yields and excess liquidity placed in high quality but lower yielding interbank placements resulted in the YoY decline in NIM. Compared to 4QFY16, NIM dipped mostly attributed to a larger amount of interest income not being recognised on NPLs. Non-interest income (non-NII) rebounded - climbing 5.5% QoQ and 29.7% YoY. Fee income expanded sharply to S$481mn from S$420mn in 4Q and S$374mn a year ago. According to management, the improvement was underpinned by a 70% increase in wealth management income, which was partly attributable to the acquisition of the former wealth and investment management business of Barclays PLC in Singapore and Hong Kong in November 2016. Bank of Singapore’s AUM rose 49% to US$85b. Increases in trading income and income from life and general insurance helped cushion lower investment gains from investment securities. Total allowances stood little changed at S$168mn YoY. Compared to 4QFY16, specific allowances (SA) reduced by more than half on the back of lower formation of new non-performing assets (NPA). Exposure to the oil and gas segment increased by S$1.3bn QoQ, driven by short term traderelated loans and lending to Singapore conglomerates. Management noted that 37% of O&G NPLs are being serviced as pro-active steps are being taken to restructure loans based on stress-test results. This is down from 52% in 4QFY16. The NPL ratio for the sector climbed to 0.62% from 0.43% in March 2016. Excluding the O&G portfolio, the NPL ratio for the rest of the group’s portfolio was relatively stable at 0.66% vs. 0.61% in March 2016. Sequentially, overall NPL ratio and allowance coverage was also stable at 1.25% (4QFY16: 1.26%) and 101% (4QFY16: 100%) respectively. By geography, we note QoQ improvements from all key overseas market except for Singapore, which saw NPAs balloon to S$924mn from S$745mn. OCBC Wing Hang’s 1QFY17 net profit improved by 1% YoY. Decreasing 2% YoY and 14% QoQ, operating profit performance remained weak. Higher allowances resulted in an 18% QoQ decline in net profit although Page 1 of 3 www.taonline.com.my 4 Share Information 2 Bloomberg Code Code 2. Stock Listing 1 Share Cap (mn) OCBC SP O39 STI 4182.5 43079.8 1.00 10.30/8.21 5355.9 69.2 1.1 Market Cap (S$mn) Par Value 52-wk Hi/Lo (S$) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) Selat - 10.8% Aberdeen - 4.8% Lee Foundation - 4.3% Singapore Investments - 3.7% Forecast Revision Forecast Revision (%) Net profit (S$m) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 3,673.1 3,869.7 3,574.0 3,936.0 102.8 98.3 Sell (upgraded) Financial Indicators ROE (%) Net Interest Margin (%) Cost/Income (%) NPL ratio (%) Loan loss coverage (%) BV/ Share (S%) Price/ BV (x) FY17 9.8 1.8 43.7 1.6 94.6 9.3 1.1 FY18 9.8 1.8 43.9 1.2 76.8 9.9 1.0 % of FY 26.0 27.0 Within Within OCBC 5.1 8.9 13.4 19.5 STI 1.9 4.5 11.4 16.0 Scorecard vs TA vs Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg
21. Thursday , 11 May, 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: Secure Jalan Tun Razak Traffic Dispersal and Road Upgrading Works Package 2. Hartalega Holdings Berhad: 4QFY17 Partly Offset by Surge in Raw Material Prices 3. Overseas-Chinese Banking Corp.: Wealth Management Rises to New Highs (9 May 2017) 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
22. 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 Thursday, 11 May 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (09.05.2017) (mil) Main Market 2,112.7 Warrants 268.8 ACE Market 842.0 Bond 7.4 ETF 0.0 Total 3,231.0 Off Market 92.6 Volume +/-chg (RMmn) -354.9 2,565.4 -33.4 33.7 -366.4 137.5 -22.9 1.3 0.02 0.0 2,737.9 44.9 220.6 Value +/-chg 328.5 -3.2 -16.4 0.0 0.02 -90.6 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 Value/ Volume 1.21 0.13 0.16 0.17 1.01 0.85 2.38 Up Down 303 324 82 65 39 60 2 5 1 1 427 455 % chg % YTD chg 1,766.56 12,645.36 17,571.40 1,767.00 -1.59 -7.43 -91.82 -1.00 -0.09 -0.06 -0.52 -0.06 7.60 10.28 19.41 8.04 20,943.11 6,129.14 7,385.24 19,900.09 2,270.12 25,015.42 3,249.97 1,560.31 5,653.01 3,052.79 1,822.56 5,875.44 -32.67 8.56 43.03 57.09 -22.64 126.39 0.00 0.00 -44.05 -27.74 -25.08 35.54 -0.16 0.14 0.59 0.29 -0.99 0.51 0.00 0.00 -0.77 -0.90 -1.36 0.61 5.97 13.86 3.39 4.11 12.02 13.70 12.82 1.13 6.73 -1.64 -7.44 3.70 The local market traded sideways on Tuesday, as profit-taking interest increased amid uncertainties over the Bandar Malaysia project and ahead of the Wesak Day holiday. The KLCI eased 1.59 points to settle at 1,766.56, after moving within a narrow range bordering 1,770.43 and 1,765.14, as losers edged gainers 455 to 427 on slower turnover totaling 3.23bn shares worth RM2.73bn. Stocks are likely to stay range bound pending more clues over the development of Bandar Malaysia project which should continue to see investors focus on construction related counters. As for the index, immediate uptrend supports will be at 1,751 and 1,742, the rising 30 and 50-day moving average levels, with better support from the lower Bollinger band at 1,725. Immediate upside hurdle stays at 1,782, the 76.4%FR of the 1,867 to 1,503 downswing closely matching the recent two-year high, followed by the 1,800 psychological level and 18 May 2015 high of 1,823. Kim Lun needs breakout confirmation above the 123.6%FP (RM2.39) to aim for the 138.2%FP (RM2.37), 150%FP (RM2.54) and 161.8%FP (RM2.60) ahead, while key breakout support at RM2.26 is reinforced by the 50-day ma (RM2.24). Sustained strength on Mudajaya above the 61.8%FR (RM1.17) will promote further strength towards the 76.4%FR (RM1.28), with tougher hurdle seen from the 6/4/16 peak (RM1.45). Key retracement support is available at the 50%FR (RM1.08). • • • • • Top 10 KLCI Movers Based on Mkt Cap. Off Market PTRANS MAYBANK SPSETTIA SIME TENAGA SERBADK KIPREIT SUNREIT MAGNI BJASSET (mn) 55.0 8.0 7.0 4.2 3.5 3.0 2.9 1.9 1.3 1.3 @ @ @ @ @ @ @ @ @ @ (RM) 0.20 9.38 3.69 9.32 13.90 1.90 1.00 1.71 4.70 0.95 Counter Mkt Cap. (RM’mn) MAYBANK 95,887 TENAGA 78,660 PBBANK 77,153 SIME 63,316 PETGAS 36,607 GENTING 36,239 MISC 32,809 GENM 32,537 IOICORP 28,843 HLBANK 28,361 Chg Vol. (RM) (mn) -0.03 14.77 -0.02 3.88 -0.02 2.33 -0.01 6.94 -0.08 0.64 -0.08 2.59 -0.09 0.27 -0.02 3.73 -0.01 3.50 -0.02 1.19 • • • • • • Important Dates PASUK GB - 1:1 Rights Issue - RI of up to 405.8m shares. SUKGB 1 rights share for every 1 existing share held, at an issue price of RM0.10 per rights share. LISTING ON: 11/05/2017. L&G - 8:5 Rights Issue - RI of up to 1,914.1m shares. 8 rights shares for every 5 existing share held, at an issue price of RM0.21 per rights share. LISTING ON: 18/05/2017. • News Bites Gas Malaysia Bhd is setting aside about RM500mn in capital expenditure for its pipeline network expansion in the next three years, which includes its Natural Gas Distribution System network in peninsular Malaysia. Tenaga Nasional Bhd has signed new deals with YTL Power International Bhd to extend the operations of the latter's power plant in Paka, Terengganu for a further period of three years and 10 months. Malaysian Resources Corp Bhd is expected to complete by year-end the payment for its 70% stake in the joint venture with the Employees Provident Fund to develop the RM8bn main town centre of the massive Kwasa Damansara township. Gadang Holdings Bhd's 51%-owned joint venture company Gadang CRFG Consortium Sdn Bhd has won a major traffic dispersion and improvement job from TRX City Sdn Bhd worth RM327.9mn. Country Heights Holdings Bhd's executive chairman and major shareholder Tan Sri Lee Kim Yew's fixed deposits of some RM126mn placed in a foreign-owned bank has been seized by the Inland Revenue Board. PPB Group Bhd's 55%-owned engineering arm CWM Group Sdn Bhd has bagged RM50mn worth of jobs in water and sewage treatment projects in Selangor and Johor year to date, bringing its current order book to about RM200mn. Selangor Dredging Bhd, via its wholly-owned subsidiary, SDB Connect Sdn Bhd, is acquiring a 20% equity interest in Webcon Mining Sdn Bhd for RM20mn. TRC Synergy Bhd has struck an agreement with Starwood Australia Hotels Pty Ltd to manage a hotel in Melbourne, Australia. EKA Noodles Bhd said its unit EKA Foodstuff Sdn Bhd had fully resumed operations on Tuesday, while another unit Kilang Bihun Bersatu Sdn Bhd would fully resume operations next month. ManagePay Systems Bhd has been appointed by a joint venture company formed by major taxi consortiums here known as PICK N GO Sdn Bhd as the sole card payment facilitator for its taxi e-hailing mobile application. Hartalega Holdings Bhd's FY17 core net profit of RM320.2mn (+25.1% YoY) was within ours but above consensus estimates at 97.4% and 113.4% respectively. The International Monetary Fund has raised its growth forecast for the Asia Pacific region to 5.5% in 2017, but warned that the nearterm outlook for the region is clouded with significant uncertainty. Exchange Rate USD/MYR 4.3470 -0.0008 USD/JPY 113.73 -0.0600 EUR/USD 1.087 -0.0027 Commodities Futures Palm Oil (RM/mt) 2,568.00 28.00 Crude Oil ($/Barrel) 47.34 1.14 Gold ($/tr.oz.) 1,219.10 -2.20 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
23. TA Securities Thursday , May 11, 2017 FBMKLCI: 1,766.56 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 Range Bound Pending Bandar Malaysia Cues The local market traded sideways on Tuesday, as profit-taking interest increased amid uncertainties over the Bandar Malaysia project and ahead of the Wesak Day holiday. The KLCI eased 1.59 points to settle at 1,766.56, after moving within a narrow range bordering 1,770.43 and 1,765.14, as losers edged gainers 455 to 427 on slower turnover totaling 3.23bn shares worth RM2.73bn. Uptrend Support at 1,751/1,742 Stocks are likely to stay range bound pending more clues over the development of Bandar Malaysia project which should continue to see investors focus on construction related counters. As for the index, immediate uptrend supports will be at 1,751 and 1,742, the rising 30 and 50-day moving average levels, with better support from the lower Bollinger band at 1,725. Immediate upside hurdle stays at 1,782, the 76.4%FR of the 1,867 to 1,503 downswing closely matching the recent two-year high, followed by the 1,800 psychological level and 18 May 2015 high of 1,823. BUY Kim Lun & Mudajaya Kim Lun needs breakout confirmation above the 123.6%FP (RM2.39) to aim for the 138.2%FP (RM2.37), 150%FP (RM2.54) and 161.8%FP (RM2.60) ahead, while key breakout support at RM2.26 is reinforced by the 50-day ma (RM2.24). Sustained strength on Mudajaya above the 61.8%FR (RM1.17) will promote further strength towards the 76.4%FR (RM1.28), with tougher hurdle seen from the 6/4/16 peak (RM1.45). Key retracement support is available at the 50%FR (RM1.08). Asian Markets Mixed after Trump Fires Comey Asian markets traded mixed on Wednesday, as investors digest the dramatic dismissal of FBI Director James Comey in the U.S. and follow the inauguration of liberal candidate Moon Jaein after his win in the South Korean presidential election. Moon promised social and economic reforms including creating jobs, curbing excessive power of founding families who control big businesses and ending corruptions between big businesses and politicians. Markets in Singapore and Malaysia were closed for the Vesak Day, while Thailand was shut for Wisakha Bucha Day. In Japan, largely solid earnings results and receding fears about the eurozone contributed to the gains. Still, profit-taking pressure was also weighing on the Nikkei as the index approached the key 20,000-point level. The Nikkei finished 0.29 percent or 57.09 points higher to close at 19,990.09. The benchmark ASX 200 reversed earlier losses to gain 0.61 percent or 35.50 points to close at 5,875.40 as investors digested the release of the federal budget. Meanwhile, China factory gate prices cooled more than expected in April, in a sign manufacturing activity may be losing momentum along with other sectors of the economy as domestic demand remains muted and the government cracks down on financial risks. The blue-chip CSI300 index fell 0.44 percent, to 3,337.70 points, while the Shanghai Composite Index dropped 0.9 percent to 3,052.78 points. Page 1 of 10
24. TA Securities 11-May-17 A Member of the TA Group Wall Street Mixed as Street Shrugs off Comey Firing U .S. stocks traded mixed on Wednesday as investors digested President Donald Trump's abrupt dismissal of his FBI chief as well as corporate earnings from Walt Disney and Nvidia. The Dow Jones industrial average lost ground, while the Nasdaq closed at a record high. Trump said he fired Federal Bureau of Investigation Director James Comey over his handling of an email scandal involving then-Democratic presidential nominee Hillary Clinton. The reaction to Comey's firing in the market was largely muted because a large number of investors still believe the market will get tax reform at some point. The S&P 500 eked out a record close, with energy rising more than 1 percent to lead advancers. The sector popped up after the Energy Information Administration reported a larger-than-expected drawdown in crude barrels. The Dow Jones industrial average ended lower with Disney and Boeing contributing the most losses. The media giant's stock was on track for its biggest one-day decline since June after reporting weaker than expected quarterly sales. Boeing, meanwhile, tumbled to session lows after the firm said it is temporarily suspending 737 Max flights. With first-quarter earnings season nearly over, investors were looking toward April retail sales data, due out on Friday, for new clues about the economy's health. The Dow Jones Industrial Average fell 32.67 points, or 0.16 percent, to 20,943.11, the S&P 500 gained 2.71 points to 2,399.63 and the Nasdaq Composite added 8.56 points, or 0.14 percent, to 6,129.14. Page 2 of 10
25. TA Securities 11-May-17 A Member of the TA Group News In Brief Corporate Gas Malaysia Bhd is setting aside about RM500mn in capital expenditure for its pipeline network expansion in the next three years , which includes its Natural Gas Distribution System (NGDS) network in peninsular Malaysia. The group has so far extended its NGDS network to 2,186km, servicing more areas while successfully maintaining 99% service reliability. Separately, Gas Malaysia’s net profit grew 7.5% to RM33.7mn for the first quarter ended March 31, 2017 (1QFY17) from RM31.4mn a year ago, on higher gross profit in line with the increase in volume of gas sold, coupled with lower administrative expenses. (Bursa Malaysia / The Edge) Tenaga Nasional Bhd (TNB) has signed new deals with YTL Power International Bhd (YTL Power) to extend the operations of the latter’s power plant in Paka, Terengganu. TNB announced that it had signed a new power purchase agreement and a new land lease agreement with YTL Power for the independent power producer to continue operations of its Paka power plant for a further period of three years and 10 months. The scheduled commercial date of operation in relation to the extension would be on Sept 1, 2017. (Bursa Malaysia / StarBiz) Malaysian Resources Corp Bhd (MRCB) is expected to complete by year-end the payment for its 70% stake in the joint venture with the Employees Provident Fund (EPF) to develop the RM8bn main town centre of the massive Kwasa Damansara township, thus making the partnership deal unconditional. MRCB also announced that the size of the Sungai Buloh land, coded as MX-1, was now slightly larger at 64.3 acres (compared to 64.07 acres previously) following a subdivision. The balance subscription payment for its majority stake in Kwasa Sentral Sdn Bhd, the special-purpose vehicle to develop MX-1, has also been raised from RM735mn to RM737.9mn. (Bursa Malaysia / StarBiz) Gadang Holdings Bhd’s 51%-owned joint venture company Gadang CRFG Consortium Sdn Bhd has won a major traffic dispersion and improvement job from TRX City Sdn Bhd worth RM327.9mn. China Railway First Group Co’s subsidiary, CRFG Malaysia Bhd, owns the remaining 49% in Gadang CRFG Consortium. (Bursa Malaysia / The Edge) Country Heights Holdings Bhd’s executive chairman and major shareholder Tan Sri Lee Kim Yew's fixed deposits of some RM126mn placed in a foreign-owned bank has been seized by the Inland Revenue Board. Lee notified the company via a letter dated May 8 that he "understands" the seizure was in relation to RM22.5mn worth of tax liabilities incurred by Country Height's wholly-owned unit and major subsidiary, Country Heights Sdn Bhd. (Bursa Malaysia / The Edge) PPB Group Bhd's 55%-owned engineering arm CWM Group Sdn Bhd has bagged RM50mn worth of jobs in water and sewage treatment projects in Selangor and Johor year to date, bringing its current order book to about RM200mn. (Bursa Malaysia / The Edge) Selangor Dredging Bhd (SDB), via its wholly-owned subsidiary, SDB Connect Sdn Bhd, is acquiring a 20% equity interest in Webcon Mining Sdn Bhd for RM20mn. SDB said the acquisition represents a strategic and significant entry for the company into the mining sector. (Bursa Malaysia / StarBiz) TRC Synergy Bhd has struck an agreement with Starwood Australia Hotels Pty Ltd to manage a hotel in Melbourne, Australia. Its wholly-owned subsidiary, TRC (Aust) Pty Ltd entered into a 12-year operating service agreement with Starwood Australia to run the hotel known as Element Melbourne Richmond. (Bursa Malaysia / The Edge) EKA Noodles Bhd said its unit EKA Foodstuff Sdn Bhd had fully resumed operations on Tuesday, while another unit Kilang Bihun Bersatu Sdn Bhd would fully resume operations next month. (Bursa Malaysia / StarBIz) Page 3 of 10
26. TA Securities 11-May-17 A Member of the TA Group ManagePay Systems Bhd has been appointed by a joint venture company (JVCo) formed by major taxi consortiums here known as PICK N GO Sdn Bhd as the sole card payment facilitator for the JVCo's taxi e-hailing mobile application. The appointment will see its wholly-owned unit ManagePay Services Sdn Bhd enabling participating taxi operators to accept major card payments through their new taxi e-hailing mobile application, PickNGo. (Bursa Malaysia / The Edge) Hartalega Holdings Bhd’s net profit in its fourth quarter ended March 31, 2017 (4QFY17) improved by 45.3% to RM89.4mn from RM61.6mn a year earlier. The improvement in its bottomline during the period was due to increase in sales revenue, improvement in operational efficiency, as well as reduction in operation overheads. (Bursa Malaysia / The Edge) Malaysia Smelting Corp Bhd’s net profit for its first quarter dropped by about 30% yearon-year to RM17.4mn, mainly due to the absence of a favourable inventory valuation adjustment and a higher net foreign-exchange loss. Revenue was down 0.44% to RM406.6mn from RM408.4mn a year earlier. (Bursa Malaysia / StarBiz) Page 4 of 10
27. TA Securities 11-May-17 A Member of the TA Group News In Brief Economy Global OECD Tempers Global Growth Expectations A significant pickup in global economic growth has become less likely this year as the outlooks for the U .S., U.K. and China dim, according to leading indicators released by the Organization for Economic Cooperation and Development. The Paris-based research body’s gauges of future activity, based on data for March, pointed to faster growth in Germany and Canada, but steady expansions in other large developed economies. They include the U.S. and the U.K., for which leading indicators were pointing to pickups as recently as February. The leading indicators also pointed to steady growth for China, having previously pointed to acceleration. Of the world’s major economies, only India is set to see a turn for the better, since it is no longer likely to slow and should instead record steady growth. The stalling of the OECD’s leading indicators is the latest setback for hopes that 2017 would mark a breakout year for the global economy, after a long stretch of disappointingly weak expansions. At the turn of the year, investors, business people and policy makers had expected to see a series of spending increases and tax cuts from the new U.S. administration that would deliver a boost to U.S. and global growth. But those expectations are now being reassessed. Figures released over recent weeks have recorded slowdowns during the first three months of the year in the U.S., U.K. and France, although Germany recorded a pickup. Economists expect to see a rebound during the second quarter. The OECD’s leading indicators are designed to provide early signals of turning points between the expansion and slowdown of economic activity, and are based on a variety of data series that have a history of anticipating swings in future economic activity. The changes in economic activity signaled by the indicators usually follow six to nine months after. The OECD’s composite leading indicator for its 34 members was steady at 100.1 in March. A reading below 100.0 points to growth that is slower than normal. (The Wall Street Journal) Asia IMF Raises Asia Pacific Growth Forecast to 5.5% for 2017 The International Monetary Fund (IMF) has raised its growth forecast for the Asia Pacific region to 5.5% in 2017, but warned that the near-term outlook for the region is “clouded with significant uncertainty”, adding that medium-term growth faced difficulties from a slowdown in productivity growth in both advanced economies and China. In its new Regional Economic Outlook for Asia and the Pacific, the fund said the region’s prospects “remains robust – the strongest in the world, in fact – and recent data point to a pickup in momentum.” That pickup prompted the IMF to raise its growth forecast for the region to 5.5% for 2017, up from a pace of 5.3% growth projected in October 2016. It revised 2017 growth projections for China and Japan upward to 6.6% and 1.2%, respectively, based mainly on continued policy support and strong recent readings from indicators such as purchasing managers’ indices. However, it revised its outlook for India downward to 7.2%, due to the temporary effects of its demonetisation drive, as well as for South Korea, to 2.7%, based on political uncertainty. While it expected medium-term slowdown in growth from China to be partially offset by an uptick from India, it noted that “the risks to the outlook, on balance, are still tilted to the downside” and said medium-term growth for the region “faces secular headwinds”. It noted that a slowdown in productivity growth since the financial crisis has been most severe not only in advanced economies in the region, but in China as well. It warned that without reforms, “productivity growth will likely remain low for some time, with headwinds from rapid aging becoming increasingly important.” (Financial Times) Page 5 of 10
28. TA Securities 11-May-17 A Member of the TA Group Figure 1 : Asia: Real GDP Source: IMF Regional Economic Outlook: Asia and Pacific Malaysia Petrol Prices Fall for Third Week in a Row Petrol prices have dropped for the third week in a row under the weekly pricing mechanism, with RON95 and RON97 went down by 10 sen per litre for the second week of May. The price of RON95 petrol stood at RM2.01 per litre compared with RM2.11 last week, while the price of RON97 petrol priced at RM2.29, down from RM2.39 per litre last week. The price of diesel dropped by 13 sen to RM1.95 compared with RM2.08 per litre last week. The new prices come into effect today and will remain in effect until May 17. With this price reduction, Malaysia will have the 10th cheapest petrol prices in the world, according to the website Global Petrol Prices. Prior to this reduction, Malaysia was No. 12. The Domestic Trade, Cooperatives and Consumerism Ministry posted the new weekly fuel prices on Twitter. (The Star) China Consumer Inflation Edged Up in April Consumer inflation in China remained mild in April, edging up on higher costs for rent, education and other nonfood items, while producer prices rose at a slower pace in a sign of weak underlying demand. The consumer-price index was up 1.2% from a year earlier, the National Bureau of Statistics said, accelerating from 0.9% in March and slightly outpacing the 1.1% forecast of economists polled by The Wall Street Journal. Producer prices decelerated for a second consecutive month, to a below-expectation 6.4% from March’s 7.6%. Food costs in April were down 3.5% from a year earlier, led by lower pork and vegetable prices as compared with March’s 4.4% drop. Offsetting this was a 2.4% increase in nonfood prices, including higher oil prices working their way through China’s transport and utilities sectors. First-quarter industrial profits were up 28.3% from a year earlier, slowing from the 31.5% pace for the first two months of the year, and are expected to Page 6 of 10
29. TA Securities 11-May-17 A Member of the TA Group weaken further . While commodity companies have enjoyed higher returns, many in consumer-related business have been restrained by robust competition and government controls from raising their prices to reflect higher raw-material costs. In March, the gap between the PPI and the CPI—a measure of the transmission of price increases—reached 6.7 percentage points, its widest since 1993, suggesting many downstream companies are being squeezed, according to DBS Bank. (The Wall Street Journal) Japan's Leading Index at 21-Month High Japan's leading index rose to a 21-month high in March, preliminary data from the Cabinet Office showed. The leading index, which measures the future economic activity, rose to 105.5 in March from 104.7 in February. This was the highest since June 2015. The coincident index that reflects the current economic activity, declined to 114.6 from 115.2 in the prior month. The expected reading was 114.7. The lagging index improved to 117.7 from 115.9 a month ago. Separately, total labor cash earnings in Japan decreased for the first time in ten months in March, confounding economists' forecast for an increase. Gross earnings dropped 0.4% year-over-year in March, reversing a 0.4% rise in February. Meanwhile, economists had expected a 0.5% increase for the month. Contractual gross earnings edged down 0.2% annually in March and special cash earnings declined by 3.6%. Similarly, real cash earnings slid 0.8% in March, after remaining flat in the preceding month. (RTT News) Australia Retail Sales Slide 0.1% in March Retail sales in Australia fell a seasonally adjusted 0.1% on month in March, the Australian Bureau of Statistics said - standing at A$25.630 billion. That missed forecasts for an increase of 0.3% following the downwardly revised 0.2% decline in February (originally 0.1%). By category, there were falls in food retailing (-0.5%), cafes, restaurants and takeaway food services (-0.5%), department stores (-0.6%) and household goods retailing (-0.1%). These falls were offset by rises in other retailing (1.1%) and clothing, footwear and personal accessory retailing (0.4%). By region, there were falls in Queensland (-1.3%), the Northern Territory (-1.8%), South Australia (-0.1%) and Tasmania (-0.2%). There were rises in Victoria (0.4%), New South Wales (0.1%), the Australian Capital Territory (0.3%) and Western Australia (0.1%). For the first quarter of 2017, retail sales gained 0.1% on quarter. (RTT News) Australia Budget to Log Surplus in 2020-2021 Australia's Treasurer Scott Morrison unveiled the budget 2017-18 in the parliament that comprised measures to improve housing affordability and a levy on big banks. Morrison also forecast the budget balance to return to surplus in 2020-21. The budget deficit is expected to narrow to A$29.4 billion in 2017-18 from A$37.6 billion in 2016-17. The budget is forecast to log A$7.4 billion surplus in 2020-21. The projected return to surplus comes despite considerable obstruction, Morrison said. Government payments are also forecast to fall to 25 percent of GDP in 2020-21, returning close to the 30 year historical average, he said. Net debt as a share of GDP is expected to peak in 2018-19 before declining over the remainder of the forward estimates. For infrastructure funding and financing, the government committed over A$75 billion over the next 10 years. The treasurer said the government plans to increase defense spending to 2% of GDP in 2020-21, three years ahead of what it had first promised. (RTT News) United States US April Federal Budget Surplus Rises to $182.4bn The US Federal Government recorded a surplus of $182.4bn for April following a deficit of $176.2bn the previous month. The surplus was above consensus expectations of $176bn and sharply higher than the $104.4bn recorded in April 2016. The monthly data is erratic, especially given potential shifts in payments into different months. April is usually a strong month for tax revenue given the annual tax deadline, but the headline surplus was significantly overstated for this year. The April calendar-adjusted surplus amounted to $145bn from $146bn the previous year. For the first seven months of fiscal 2016/17 the deficit declined to $344.4bn from $352.9bn for the first seven months of fiscal 2015/16. Page 7 of 10
30. TA Securities 11-May-17 A Member of the TA Group Overall receipts rose 0 .7% over the year after a strong month for April with 4.0% annual growth. Spending increased 0.3% over the year following a sharp decline in April. (Economic Calendar) U.S. Import Prices Climb for Fifth Consecutive Month in April Import prices in the U.S. rose by more than expected in the month of April, according to a report released by the Labor Department, with the increase partly reflecting a rebound in prices for fuel imports. The Labor Department said import prices climbed by 0.5% in April after a revised 0.1% uptick in March. Economists had expected import prices to rise by 0.2% compared to the 0.2% drop originally reported for the previous month. The bigger than expected increase in imports prices came as prices for fuel imports jumped by 1.6% in April after sliding by 0.9% in March. Significant increases in prices for both petroleum and natural gas contributed to the rebound in overall fuel prices. Excluding fuel prices, import prices still rose by 0.3% in April compared to the 0.2% increase seen in March. The Labor Department said higher prices for non-fuel industrial supplies and materials, foods, feeds, and beverages, and each of the major finished goods categories all contributed to the increase. (RTT News) US Wholesale Inventories Rise in March, Sales Flat U.S. wholesale inventories increased in March amid flat sales, confounding the government's initial estimate of a modest dip. The Commerce Department said wholesale inventories rose 0.2% after increasing 0.3% in February. The department reported last month that wholesale inventories slipped 0.1% in March. Auto inventories increased 1.9%. Wholesale stocks of electrical goods surged 2.3%, the biggest gain since January 2015. Professional equipment inventories rose 1.0% in March. The component of wholesale inventories that goes into the calculation of gross domestic product — wholesale stocks excluding autos — were unchanged in March. A report last week showed inventories at factories were flat in March after rising 0.2% in February. Inventory investment subtracted 0.93 percentage point from GDP in the first quarter, helping to hold down the economy to a 0.7% annualized growth pace, the weakest performance in three years. Inventories had contributed to GDP growth for two straight quarters. Sales at wholesalers were unchanged in March after climbing 0.7% in February. Sales of electrical goods fell 0.3% while those of professional equipment tumbled 1.8%. At March's sales pace it would take wholesalers 1.28 months to clear shelves, unchanged from February. The ratio has declined from 1.36 months in January and February last year, which was the highest since January 2009. (CNBC) Hiring and Job Opening Rates Held Steady During Weak Month of March The Labor Department’s main jobs report in March showed a small slump in hiring, but a secondary jobs report for that month, showed little change in the labor market’s underlying momentum. The secondary report — the Job Openings and Labor Turnover Survey, known as Jolts — tracks the monthly pace at which people start jobs, quit jobs, or are laid off, and the number of job openings. For March, the report showed little change from previous months across all its main rates, despite that downdraft in the main report. Subsequent data has shown the labor market rebounded in April. That rebound, combined with Tuesday’s Jolts report, may imply that the weak month of March was largely a fluke. One popular measure in the report is the number of job seekers per job opening. The latest report shows there are 1.25 seekers per opening, compared to a peak of more than six per opening in 2009 during the recession. That ratio has moved down slightly over the past year, but mostly because the number of unemployed people has been shrinking and not because the number of openings has been rising. (The Wall Street Journal) The $2 Trillion Question in Trump’s New Tax Plan The Trump administration says a middle-class tax cut is at the center of its tax plan. But doing the arithmetic to figure out what middle-class families would pay is close to impossible. President Donald Trump’s plan is silent so far on crucial details Americans need to calculate their tax bills, including the personal exemption and the size of the tax brackets. Mr. Trump’s plans have become less clear and less easy to calculate since the presidential Page 8 of 10
31. TA Securities 11-May-17 A Member of the TA Group campaign . Back in September 2015, well before the first Republican primary, his tax plan was a model of simplicity for middle-income households. Individuals making under $25,000, single parents making under $37,500 and married couples making under $50,000 would get a new form from the Internal Revenue Service. They could literally write the words “I win” and pay nothing, the plan said. What Mr. Trump proposed then was expanding what tax experts call the 0% tax bracket, a central way the U.S. makes its tax system progressive. It is a politically attractive and economically logical idea: Don’t make people pay income taxes on money they need for basic living expenses. Under that original plan, 63% of Americans would pay no income tax compared with 44% in 2016, according to the Tax Policy Center, a project of the Brookings Institution and Urban Institute. (The Wall Street Journal) Europe and United Kingdom Mario Draghi Brushes Off Calls to End ECB’s Monetary Stimulus European Central Bank President Mario Draghi defended the ECB’s monetary stimulus before Dutch lawmakers in a rare visit to a national parliament, as pressure builds in Northern Europe for a policy change from Frankfurt. Speaking in the Dutch Lower House, Mr. Draghi argued that the ECB’s large-scale bond purchases and subzero rates have helped support local households and the national budget. He emphasized that the policies would remain in place for now, brushing off calls for a swift exit. “It is too early to declare success,” Mr. Draghi said, pointing to weak core inflation and wage growth. “Maintaining the current very substantial degree of monetary [stimulus] is still needed for underlying inflation pressures to build up.” The visit to The Hague comes at a sensitive time for the ECB, which is considering when to start winding down its €60 billion ($65.22 billion) monthly bondpurchasing program, known as quantitative easing. The program is currently due to run at least through December. (The Wall Street Journal) Germany's Exports Rise More than Forecast Germany's exports increased more than expected and imports rebounded in March, data from Destatis revealed. Exports grew 0.4% in March from the prior month, faster than the expected 0.2% rise. However, the monthly rate eased from 0.9%. At the same time, imports climbed 2.4% in March after declining 1.6% in February. Imports were expected to rise moderately by 1.6%. As a result, the trade surplus declined to a seasonally adjusted EUR 19.6 billion from EUR 21.2 billion in the prior month. On an unadjusted basis, the trade surplus dropped to EUR 25.4 billion from EUR 25.8 billion in the prior year. Meanwhile, the current account surplus rose to EUR 30.2 billion from EUR 20.7 billion in February. This was also bigger than prior year's EUR 29.1 billion. Year-on-year, growth in exports accelerated to 10.8% from 3.2%. Likewise, imports advanced 14.7% following a 3.7% rise in February. (RTT News) Germany's Industrial Production Falls Less than Forecast Germany's industrial production decreased at a slower-than-expected pace in March, data from Destatis showed. Industrial production fell 0.4 percent month-over-month in March, reversing a 1.8% rise in February, which was revised down from a 2.2% gain reported earlier. Economists had expected a 0.7% decline for March. Within industry, production of capital goods dropped 1.2% in March and those of consumer goods remained at the same level of the prior month. Energy production registered a fall of 2.5%, while production in construction grew by 1.5%. (RTT News) Page 9 of 10
32. TA Securities 11-May-17 A Member of the TA Group Share Buy-Back : 09 May 2017 Company FIAMMA FITTERS IOIPG TCHONG TEXCHEM UNIMECH Bought Back Price (RM) Hi/Lo (RM) 200,000 100,000 2,000,000 1,000 2,000 4,000 0.575/0.57 0.41 2.11/2.10 1.86 1.45 1.17/1.16 0.575/0.57 0.41/0.405 2.12/2.09 1.88/1.86 1.46/1.42 1.18/1.16 Total Treasury Shares 14,960,000 18,351,900 19,110,400 19,338,000 2,541,200 6,259,010 Source: Bursa Malaysia 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. 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 Page 10 of 10 We accept no
33. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 05-May-17 2.14 2.55 5.90 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 2.36 2.04 5.12 0.96 0.58 1.23 10.8 22.7 17.7 15.8 23.8 27.6 19.9 11.3 33.4 13.6 10.7 21.4 5.6 3.5 1.9 7.3 3.5 3.1 2.44 2.70 7.00 -12.3 -5.6 -15.7 1.95 1.95 4.43 9.7 30.8 33.2 0.5 19.2 29.1 4.10 3.40 5.40 6.10 15.80 9.20 22.10 4.70 10.00 1.28 0.96 1.33 1.34 0.66 0.96 0.80 1.31 0.71 35.8 29.4 46.4 50.6 101.3 73.6 136.6 49.0 40.3 37.7 33.1 50.6 55.6 109.8 82.6 140.4 51.7 39.0 12.2 10.1 12.0 11.6 13.6 12.7 14.6 11.2 24.8 11.6 8.9 11.0 10.5 12.6 11.3 14.2 10.6 25.6 3.4 2.7 2.9 3.5 3.0 5.3 2.8 2.2 3.4 3.4 2.7 3.2 3.8 3.0 5.3 2.9 2.2 3.4 4.38 3.00 5.70 5.96 14.00 9.68 20.58 5.59 10.38 0.0 -1.3 -2.6 -1.8 -1.3 -3.3 -2.9 -2.3 -3.9 3.60 2.08 3.90 4.11 12.70 7.50 18.72 4.46 8.20 21.7 42.3 42.3 42.3 8.8 24.8 6.7 22.4 21.7 17.7 23.8 28.8 29.7 2.4 14.1 1.3 15.9 12.8 0.44 1.28 5.33 3.56 1.01 2.08 2.23 5.92 0.49 1.62 5.49 3.27 0.58 1.90 1.50 5.58 0.80 0.68 1.06 1.09 1.21 na 1.11 0.12 5.7 14.6 31.6 16.8 9.6 12.6 11.9 44.3 5.7 13.5 36.4 20.9 9.9 12.5 11.8 45.8 7.6 8.8 16.9 21.2 10.5 16.4 18.8 13.4 7.6 9.5 14.7 17.0 10.2 16.6 18.9 12.9 0.0 2.2 2.3 2.7 1.0 2.6 1.3 4.2 2.3 2.2 2.3 2.7 1.0 2.6 1.3 4.2 0.51 1.35 5.36 3.61 1.05 2.13 2.49 6.13 -14.7 -5.3 -0.6 -1.4 -3.8 -2.3 -10.4 -3.4 0.36 0.80 4.64 3.07 0.41 1.42 1.41 5.15 20.8 60.8 14.9 16.0 149.4 46.5 58.2 15.0 0.0 21.9 11.5 11.3 75.7 22.4 28.9 0.7 1.99 2.00 0.46 15.4 15.6 12.9 12.7 5.0 5.0 2.40 -17.1 1.93 3.1 -1.0 14.72 18.12 15.41 21.08 0.53 0.57 69.6 93.1 77.5 21.1 101.9 19.5 19.0 17.8 4.7 4.6 5.2 5.1 15.30 18.74 -3.8 -3.3 12.52 14.58 17.6 24.3 5.7 10.6 2.43 7.65 24.68 83.00 3.44 1.81 4.95 1.01 2.23 9.59 27.41 88.66 3.76 2.74 4.17 1.10 0.49 0.35 0.36 0.37 0.50 0.69 0.43 0.58 6.5 35.9 120.5 293.6 22.3 25.1 12.7 9.3 7.5 40.5 148.1 326.2 24.7 25.3 15.8 12.8 37.4 21.3 20.5 28.3 15.4 7.2 39.0 10.9 32.2 18.9 16.7 25.4 13.9 7.1 31.4 7.9 0.8 3.9 2.8 3.3 4.4 4.4 0.9 5.0 0.9 5.0 3.0 3.4 4.9 4.4 1.0 5.0 3.00 9.53 27.00 83.68 3.58 2.04 4.95 1.07 -19.0 -19.7 -8.6 -0.8 -3.9 -11.3 0.0 -5.6 2.11 7.30 22.44 74.12 2.13 1.43 4.14 0.78 15.2 4.8 10.0 12.0 61.5 26.6 19.5 29.5 -5.4 4.4 5.1 6.1 34.9 4.6 14.3 27.0 45.02 52.08 1.05 198.6 187.4 22.7 24.0 4.4 4.4 55.64 -19.1 40.61 10.9 1.9 9.72 5.74 10.34 6.10 1.35 1.27 45.0 25.7 51.0 27.9 21.6 22.3 19.0 20.6 0.5 1.4 0.6 1.6 10.00 6.07 -2.8 -5.4 7.50 4.17 29.6 37.5 22.3 27.0 2.77 0.14 3.81 0.10 0.72 1.34 22.1 0.2 24.6 0.3 12.5 70.9 11.2 46.4 5.8 0.0 6.9 0.0 3.42 0.15 -19.0 -3.4 2.73 0.05 1.5 180.0 -6.4 180.0 6.18 4.18 6.40 4.61 0.78 0.52 13.9 13.3 17.9 16.5 44.5 31.4 34.4 25.4 0.7 1.5 0.7 1.8 6.79 4.37 -9.0 -4.3 5.78 3.85 6.9 8.6 -2.7 0.0 5.39 6.30 2.10 5.04 2.12 6.05 6.80 1.90 5.05 2.55 0.57 0.12 0.30 -0.22 0.28 19.5 35.8 16.2 26.6 4.3 24.4 40.5 18.3 30.2 7.1 27.7 17.6 12.9 19.0 49.4 22.1 15.6 11.5 16.7 30.0 1.5 2.8 2.3 2.6 0.5 2.0 3.2 2.6 3.0 0.8 5.47 7.07 2.73 5.45 2.64 -1.5 -10.9 -23.1 -7.5 -19.7 3.87 5.62 1.88 4.20 1.96 39.3 12.1 11.7 20.0 8.2 11.6 -4.4 -0.5 -5.8 -10.2 INDUSTRIAL SCIENTX SKPRES 8.43 1.28 8.50 1.75 0.57 0.48 67.9 9.1 78.0 14.1 12.4 14.1 10.8 9.1 2.5 3.4 2.8 5.3 8.99 1.44 -6.2 -11.1 5.90 1.12 42.9 14.3 25.8 -0.8 MEDIA ASTRO MEDIA PRIMA STAR 2.70 1.09 2.52 3.20 0.95 2.30 1.03 0.69 0.63 13.2 7.8 14.8 14.5 8.1 15.6 20.4 14.0 17.1 18.7 13.5 16.2 4.6 5.7 7.1 4.8 6.0 7.1 3.01 1.52 2.70 -10.3 -28.3 -6.7 2.56 1.00 2.20 5.5 9.0 14.5 3.8 -5.2 12.5 0.45 0.84 7.03 0.44 6.05 1.29 0.61 32.6 14.3 4.6 47.1 18.3 47.3 3.3 -4.8 4.9 0.0 43.8 2.6 17.3 -28.6 1.30 38.5 5.9 BANKS & FINANCIAL SERVICES AFG 4.38 AFFIN 2.96 AMBANK 5.55 CIMB 5.85 HLBANK 13.82 MAYBANK 9.36 PBBANK 19.98 5.46 RHBBANK BURSA 9.98 CONSTRUCTION BPURI GADANG GAMUDA IJM SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N 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 EATECH 0.59 0.45 1.04 11.5 11.9 5.1 4.9 0.0 0.0 1.18 -50.0 MHB 0.96 0.95 1.81 -1.2 1.3 na 73.3 0.0 0.0 1.23 -22.0 MISC 7.35 7.65 0.82 56.8 54.7 12.9 13.4 4.1 4.1 7.84 -6.3 PANTECH 0.64 0.69 1.28 4.1 5.0 15.4 12.8 2.8 3.1 0.67 -3.8 PCHEM 7.16 7.91 1.06 34.7 39.3 20.6 18.2 2.7 2.7 7.80 -8.2 SENERGY 1.90 2.02 2.42 5.3 4.6 36.2 41.0 0.0 0.0 2.10 -9.5 UMWOG 0.63 0.80 2.01 -12.0 -3.6 na na 0.0 0.0 1.04 -39.9 Note: UMWOG proposed 14 for 5 rights issue shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.80 1.40 1.39 11.3 12.2 16.0 14.7 0.0 0.0 2.02 -10.9
34. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 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 1.88 3.08 4.59 24.80 9.31 6.18 1.53 3.88 3.93 22.75 8.24 7.52 1.80 0.46 1.09 0.91 1.25 0.50 6.3 13.7 18.7 111.8 30.8 32.7 11.1 15.7 21.1 119.1 35.3 34.5 29.6 22.5 24.5 22.2 30.3 18.9 16.9 19.6 21.8 20.8 26.4 17.9 2.7 2.3 2.2 2.2 2.4 2.6 2.7 2.6 2.6 2.4 3.0 2.8 2.52 3.70 4.81 25.50 9.55 6.51 -25.4 -16.8 -4.6 -2.7 -2.5 -5.1 1.31 3.00 4.07 22.62 7.10 5.53 43.5 2.7 12.8 9.6 31.1 11.8 21.3 -9.4 4.3 3.3 14.9 3.0 0.70 1.09 0.86 2.10 1.54 0.77 3.69 3.62 0.69 1.07 1.00 2.10 1.60 0.80 4.10 3.40 0.65 0.66 0.33 0.93 0.71 0.29 0.67 0.49 3.4 20.0 7.3 14.7 14.5 6.4 25.6 27.2 7.0 17.4 11.2 15.3 12.5 9.7 22.8 29.1 20.2 5.4 11.8 14.3 10.6 12.0 14.4 13.3 9.9 6.2 7.7 13.7 12.3 7.9 16.2 12.5 5.8 3.7 4.1 3.3 3.9 1.3 3.8 3.3 5.8 3.2 4.7 3.6 3.6 1.3 3.8 3.3 0.83 1.43 1.05 2.46 1.70 1.00 3.77 3.66 -15.8 -23.9 -18.6 -14.6 -9.4 -23.5 -2.1 -1.1 0.68 1.05 0.85 1.85 1.34 0.69 2.80 2.84 2.2 3.8 1.2 13.7 14.9 10.9 31.8 27.4 0.0 -3.5 -14.5 7.7 7.7 -4.4 17.9 20.7 1.72 1.48 1.86 1.72 0.54 0.59 8.9 8.1 10.1 8.6 19.4 18.3 17.0 17.2 5.2 5.7 5.9 6.0 1.84 1.72 -6.5 -14.0 1.60 1.44 7.5 2.8 0.0 -3.3 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.24 24.00 18.50 13.90 1.51 1.45 20.19 19.02 17.37 1.81 0.72 0.75 0.76 1.02 0.58 6.6 98.4 88.2 131.9 8.8 6.1 102.3 101.3 130.8 10.6 18.8 24.4 21.0 10.5 17.3 20.2 23.5 18.3 10.6 14.3 5.6 3.0 3.3 3.2 6.6 5.6 3.2 3.8 3.3 6.6 1.80 25.70 22.66 14.90 1.64 -31.1 -6.6 -18.4 -6.7 -7.9 1.14 22.50 18.10 13.00 1.38 8.8 6.7 2.2 6.9 9.4 -9.5 0.8 -13.1 0.0 1.3 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.25 5.07 6.55 6.48 5.25 4.95 5.95 6.95 1.26 0.95 0.71 0.68 16.7 20.8 25.1 21.4 17.6 21.1 25.4 22.3 31.4 24.3 26.1 30.2 29.8 24.0 25.7 29.1 1.6 4.1 3.1 3.0 1.7 4.2 3.1 3.1 5.99 5.19 6.56 6.90 -12.4 -2.3 -0.2 -6.1 4.11 4.36 5.36 5.81 27.7 16.3 22.2 11.5 11.2 5.0 9.5 8.9 TECHNOLOGY Semiconductor & Electronics IRIS 0.19 INARI 2.11 MPI 12.84 UNISEM 3.52 0.14 2.35 13.15 3.55 1.43 0.78 0.50 0.82 -1.2 10.5 94.2 26.9 0.9 na 12.6 20.1 115.7 13.6 29.1 13.1 21.0 16.8 11.1 12.1 0.0 2.0 2.1 3.4 0.0 2.3 2.1 3.4 0.24 2.13 13.06 3.54 -20.8 -0.9 -1.7 -0.6 0.10 1.28 7.02 2.20 90.0 64.6 82.9 60.0 72.7 27.1 73.3 49.2 3.43 8.10 3.02 8.10 1.16 1.45 33.5 17.2 34.9 17.5 10.2 47.0 9.8 46.3 1.2 1.2 1.5 1.2 3.49 8.31 -1.7 -2.5 2.06 5.76 66.5 40.6 49.8 33.7 1.75 3.92 1.88 4.51 0.81 0.68 15.4 19.3 21.5 17.4 11.3 20.3 8.1 22.5 3.1 3.7 4.0 3.3 1.87 4.59 -6.4 -14.6 1.23 3.74 42.3 4.8 10.1 -8.8 PROPERTY GLOMAC HUAYANG IBRACO IOIPG MAHSING SNTORIA SPSETIA SUNWAY REIT SUNREIT CMMT TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 20.50 OCBC 10.46 UOB 23.55 PLANTATIONS WILMAR IFAR 3.47 0.50 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 21.40 11.10 23.60 1.23 1.13 1.09 173.8 87.8 195.7 190.2 11.8 92.5 11.9 209.4 12.0 10.8 11.3 11.2 2.9 5.7 3.0 2.9 6.7 3.0 20.8 10.5 23.6 -1.6 0.0 0.0 14.63 8.84 17.41 40.1 27.4 35.3 18.2 17.3 15.4 3.45 0.53 0.90 1.11 28.9 3.9 31.1 4.3 11.2 11.6 2.3 1.9 2.6 2.1 4.0 0.6 -13.3 -16.8 2.96 0.44 17.2 12.5 -3.3 -5.7 12.0 12.6 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. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
35. 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 Thursday, May 11, 2017 FBMKLCI: 1,766.56 Sector: Construction TP: RM1.62(+26.6%) Last traded: RM1.28 Secure Jalan Tun Razak Traffic Dispersal and Road Upgrading Works Package BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Ooi Beng Hooi Tel: 603-2167-9612 benghooi@ta.com.my Gadang CRFG Consortium Sdn Bhd, a 51:49 JV company between Gadang and CRFG Malaysia Berhad (a wholly-owned subsidiary of China Railway First Group), has accepted the award of contract from TRX City Sdn Bhd to undertake the construction works for Package 2 of Jalan Tun Razak traffic dispersal and upgrading works (between Jalan Langgak Golf and Kampung Pandan roundabout), for a contract sum of RM327.9mn. Our View This is the second construction job secured by Gadang before ending FY17. This brings the total amount of new construction contracts secured in FY17 to RM1,119.3mn (RM952.1mn for MRT line 2 works package V206 and 51% effective stake in Jalan Tun Razak package 2) www.taonline.com.my Share Information Bl oombe rg Code GADG MK Burs a GADANG Stock Code 9261 Li s ti ng Ma i n Ma rket Sha re Ca p (mn) 654.3 Ma rket Ca p (RMmn) 837.5 Pa r Va l ue 0.50 52-wk Hi /Lo (RM) 1.35/0.80 12-mth Avg Da i l y Vol ('000 s hrs ) 6675.7 Es ti ma ted Free Fl oa t (%) 64.8 Beta 0.68 Major Shareholders (%) Mel ori a Sdn Bhd - 13.37 Sumber Ra s wi ra Sdn Bhd - 12.44 Forecast Revision With this new job win, we estimate Gadang’s outstanding order book improves to RM1.5bn, translating into 3.1x FY16 construction revenue. This could provide earnings visibility to the construction division for the next 4 years. Foreca s t Revi s i on (%) Net profi t (RMm) Cons ens us TA's / Cons e ns us (%) Previ ous Ra ti ng FY17 FY18 2.8 95.4 88.0 92.7 93.6 102.9 94.0 Buy (Ma i nta i ne d) Assuming an operating margin of 8%, we expect the project to generate a net profit of RM10.2mn, or 1.6sen/share throughout the construction period. Financial Indicators Impact Following the job win, we upgrade FY18 and FY19 earnings forecasts by 2.8% and 4.7% respectively as it exceeded our order book replenishment assumption of RM952mn for FY17. Net 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 (9.5) 3.0 (13.5) 42.7 7.9 9.0 0.9 1.0 1.5 1.3 Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth GADANG FBM KLCI (3.0) 1.6 17.4 4.0 27.0 6.9 52.4 8.0 Valuation Subsequent to the revision in earnings forecasts, we raise the target price from RM1.55 to RM1.62, based unchanged on 14x CY18 construction earnings, 8x CY18 property earnings, 12x CY18 utility earnings, and assigned value of oil palm plantation landbank of RM25k/ha. Maintain BUY call on the stock. (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg Page 1 of 2
36. TA Securities 11-May-17 A Member of the TA Group Financial Statements Profit & Loss (RMmn) YE May 31 Revenue EBITDA Dep. & amortisation Finance cost PBT Core PBT Taxation MI PATAMI Core PATAMI Core EPS (sen)* GDPS (sen)* Div yield (%) FY15 587.4 92.9 (5.6) (2.5) 84.8 84.8 (24.0) 1.2 59.6 59.6 11.2 2.0 1.6 FY16 676.1 126.6 (6.1) (2.6) 124.1 124.1 (29.4) 0.4 94.2 94.2 16.3 2.8 2.2 FY17F 567.6 141.1 (8.1) (3.5) 129.5 129.5 (33.0) 1.1 95.4 95.4 14.8 2.8 2.2 FY18F 735.0 133.0 (9.5) (3.6) 119.9 119.9 (30.6) 1.3 88.0 88.0 13.6 2.8 2.2 FY19F 853.4 162.3 (11.8) (2.9) 147.7 147.7 (37.7) 3.3 106.7 106.7 16.5 2.8 2.2 Cash Flow (RMmn) YE May 31 PBT Dep. & amortisation Other adjustments Changes in WC Income tax Operational cash flow Capex Others Investment cash flow Debt raised/ (repaid) Equity raised/ (repaid) Dividend Others Financial cash flow Net cash flow Opening cash Forex adjustment Ending Cash FY15 84.8 23.1 4.5 8.9 (28.1) 93.2 (28.6) (14.8) (43.4) 104.0 32.4 (8.7) (81.9) 45.9 95.7 76.2 (1.8) 170.1 FY16 124.5 24.9 (3.9) (121.0) (26.6) (2.1) (3.2) (2.8) (6.0) 85.9 62.2 (11.8) (67.6) 68.7 60.6 170.1 1.8 232.5 FY17F 129.5 8.1 (3.5) (79.1) (33.0) 21.9 (3.5) (20.0) (23.5) 9.7 0.0 (9.1) 3.5 4.1 2.5 232.5 0.0 235.0 FY18F 119.9 9.5 (3.6) (107.2) (30.6) (12.0) (2.8) (20.0) (22.8) 9.7 0.0 (9.1) 3.6 4.3 (30.6) 235.0 0.0 204.5 FY19F 147.7 11.8 (2.9) (30.2) (37.7) 88.7 (2.8) (20.0) (22.8) (50.0) 0.0 (9.1) 2.9 (56.2) 9.7 204.5 0.0 214.2 Balance Sheet (RMmn) YE May 31 Fixed assets Concession assets Others Total NCA Cash & equivalents Others CA FY15 FY16 93.1 76.4 46.1 61.3 53.2 74.0 192.3 211.7 232.7 187.6 401.1 823.4 633.8 1,011.1 Total Assets 826.1 1,222.8 1,077.6 1,156.6 1,208.6 ST debt Others CL 101.2 232.4 333.6 55.8 319.6 375.4 89.3 207.7 297.0 91.2 195.9 287.1 91.2 195.9 287.1 LT borrowings Others LT Liabilities 91.8 12.3 104.1 167.0 144.1 311.0 143.2 13.5 156.7 151.0 14.4 165.4 101.0 15.4 116.4 Share cap Reserves NCI Shareholders' fund Total Equity Total Equity & Liabilities 216.4 165.0 7.0 381.4 388.4 826.1 258.6 270.5 7.3 529.1 536.4 1,222.8 323.3 292.2 8.4 615.5 623.8 1,077.6 323.3 371.1 9.7 694.4 704.1 1,156.6 323.3 468.8 13.0 792.1 805.0 1,208.6 Ratio YE May 31 EBITDA margin (%) Core EPS (sen)* EPS Growth (%) PER (x) GDPS (sen)* Div Yield (%) Net cash (RMm) Net gearing (x) ROE (%) ROA (%) NTA/share (RM)* P/NTA (x) FY15 15.8 11.2 26.9 11.5 2.0 1.6 FY17F 78.4 75.2 73.6 227.2 190.2 660.2 850.4 FY16 19.5 16.4 46.8 7.8 2.8 2.2 FY17F 24.9 14.8 (9.9) 8.7 2.8 2.2 FY18F 79.6 87.7 73.2 240.5 159.6 756.5 916.1 FY19F 80.8 98.9 71.8 251.5 169.3 787.7 957.1 FY18F 18.1 13.6 (7.8) 9.4 2.8 2.2 FY19F 19.0 16.5 21.3 7.8 2.8 2.2 39.6 71.5 64.3 24.1 83.8 net cash net cash net cash net cash net cash 17.5 20.8 16.7 13.4 14.4 8.5 9.3 8.3 7.9 9.0 0.6 0.7 0.8 0.9 1.0 2.2 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. 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
37. R E S U L T S UPDATE TA Securities Thursday , May 11, 2017 FBM KLCI: 1,766.56 Sector: Healthcare A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Hartalega Holdings Berhad TP: RM6.05 (+12.2%) Last traded: RM5.39 4QFY17 Partly Offset by Surge in Raw Material Prices BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Wilson Loo Tel: +603-2167 9606 wilsonloo@ta.com.my Review Hartalega’s FY17 core net profit of RM320.2mn (+25.1% YoY) was within ours but above consensus estimates at 97.4% and 113.4% respectively. Core net profit excludes losses of RM37.2mn arising mainly from the revaluation of USD denominated loans followed by foreign exchange and derivative losses. YoY, FY17’s revenue and adjusted PBT respectively increased by 21.6% to RM1.8bn and 22.3% to RM385.9mn. The robust growth was on the back of sales volume growth of 24.1% YoY and support from the strengthening of the USD against the Ringgit. Overall plant utilisation rates were optimal at 87% (+6.0%-points YoY). QoQ, revenue grew by 15.5% to RM527.0mn mainly on sales volume growth of 13.8% and higher average selling prices in Ringgit by 4.7%. Adjusted PBT however, grew at a slower pace of 7.9% QoQ to RM116.0mn due to the surge in raw material prices (nitrile butadiene rubber by +33.5% QoQ and natural rubber latex by +31.0% QoQ) during the quarter. Correspondingly, adjusted PBT margins declined by 1.6%-points to 22.0%. Of note, 4QFY17’s effective tax rate of 24.5% was slightly over the statutory tax rate of 24% due to the overutilization of tax allowances. Nevertheless, management continues to foresee effective tax rate in the foreseeable term to be below the statutory tax rate. Similar to 4QFY16, a third interim dividend of 2.0sen per share was declared, bringing YTD dividends to 6.0sen per share. Based on the group’s dividend policy which targets a minimum payout of 45%, we could anticipate a final dividend of circa 2.0sen per share. Impact Our FY18/FY19 earnings estimates are adjusted by +0.8%/+0.9% after imputing FY17’s figures into our model. We also introduce our FY20 earnings estimates of RM544.0mn. Outlook We remain sanguine on the group’s on-going expansion ambitions at the Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang. Prospective capacity from the NGC is expected to propel the group’s capacity from 23.6bn gloves/annum as at 4QFY17 to 40.7bn gloves/annum by FY21, representing a CAGR of 15%. Taking comfort, management guided that notwithstanding the competitive environment, the group’s increased marketing efforts and growing product range are bearing fruit with order visibility currently at 3 to 4 months. Our projections suggest FY18/FY19/FY20’s earnings growing at 25%/18%/15%. Share Information Bloomberg Code HART MK Stock Code 5168 Listing Main Market Share Cap (mn) 1643.6 Market Cap (RMmn) 8,858.8 Par Value 0.50 52-wk Hi/Lo (RM) 5.47/3.87 12-mth Avg Daily Vol ('000 shrs) 1,007.6 Estimated Free Float (%) 29.9 Beta 0.6 Major Shareholders (%) Hartalega Industries Sdn Bhd - 49.2 EPF - 7.5 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 0.8 0.9 401.6 472.4 342.3 382.3 117.3 123.6 Buy (Maintained) Financial Indicators Net gearing (x) CFPS (sen) P/CFPS (x) ROAA (%) ROAE (%) NTA/Share (RM) Price/ NTA (x) FY18 0.1 23.6 22.8 16.4 22.4 1.1 4.7 FY19 0.1 30.1 17.9 17.0 23.2 1.3 4.2 % of FY 97.4 113.4 Within Above Hartalega 10.5 13.0 8.5 38.2 FBM KLCI 1.6 4.0 6.9 8.0 Scorecard vs TA vs Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBM KLCI Key risks to our projetions are volatilities to the USD/Ringgit and raw material prices. Nonetheless, we note that lately the group has been able to respond better to these volatilities owing to its prudent measure to increase the frequency of reviewing selling prices to every month as well as the market’s improved adaptations to volatilities. Source: Bloomberg Page 1 of 3 www.taonline.com.my
38. TA Securities 11-May-17 A Member of the TA Group Valuation Our TP for Hartalega is maintained at RM6 .05/share. This is based on an unchanged PE multiple of 22.0x against CY18 EPS. We continue to like the group for its: 1) manufacturing capabilities, 2) superior margins, and 3) earnings growth prospects. Key risks to our call include: 1) volatile fluctuations in raw material prices and 2) sustaining high utilisation rates amidst capacity expansion. Reiterate Buy. Figure 1: Forward PER x 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 +1SD: 27.6x Average: 22.6x Mar-17 Sep-16 Dec-16 Jun-16 Dec-15 Mar-16 Jun-15 Sep-15 Mar-15 Dec-14 Jun-14 Sep-14 Mar-14 Sep-13 Dec-13 Jun-13 Dec-12 Mar-13 Jun-12 Sep-12 -1SD: 17.6x Source: Companies, TA Securities Table 1: Earnings Summary (RMmn) FYE Mar 31 Revenue EBITDA Depreciation & amortisation Net finance cost EI PBT Taxation MI Net profit (-MI) Core net profit (-MI) EPS (sen) EPS growth (%) PER (x) DPS (sen) Dividend yield (%) FY16 1,498.3 385.3 -70.6 0.9 1.3 316.9 -59.1 -0.4 257.4 256.1 15.6 22.7 34.6 8.0 1.4 FY17 1,822.1 456.5 -70.6 0.0 -37.2 348.7 -65.3 -0.4 283.0 320.2 17.1 10.0 31.5 7.9 1.5 FY18F 2,311.1 561.6 -83.9 0.6 0.0 478.2 -76.5 -0.1 401.6 401.6 24.3 41.9 22.2 10.9 2.0 FY19F 2,664.6 657.8 -95.7 0.3 0.0 562.5 -90.0 -0.1 472.4 472.4 28.5 17.6 18.9 12.8 2.4 FY20F 3,001.7 753.5 -106.8 1.1 1.0 647.7 -103.6 -0.1 544.0 543.0 32.9 15.2 16.4 14.8 2.7 Table 2: FY17 Results Analysis (RMmn) FYE Mar 31 Revenue EBITDA Depreciation & Amortisation Net finance cost EI PBT Adj PBT Taxation MI Net profit (-MI) Core net profit (-MI) Margins EBITDA margin (%) PBT margin (%) Adjusted PBT margin (%) Tax rate (%) Net profit margin (%) Core net profit margin (%) 4QFY16 400.5 72.7 -21.1 0.4 18.7 70.7 52.0 -9.2 0.0 61.5 42.7 3QFY17 456.3 125.1 -17.5 -0.1 -29.2 78.3 107.5 -11.9 -0.2 66.2 95.4 4QFY17 527.0 135.4 -19.2 -0.2 2.5 118.5 116.0 -29.1 0.0 89.4 86.9 QoQ (%) 15.5 8.2 10.0 29.3 -108.5 51.3 7.9 143.7 -93.1 35.0 -8.9 YoY (%) 31.6 86.4 -8.7 -139.9 -86.8 67.6 123.3 216.6 -75.0 45.4 103.4 FY16 1,498.3 385.3 -70.6 0.9 1.3 316.9 315.6 -59.1 -0.4 257.4 256.0 FY17 1,822.1 456.5 -70.6 0.0 -37.2 348.7 385.9 -65.3 -0.4 283.0 320.2 YoY (%) 21.6 18.5 0.0 -100.3 -2,905.5 10.0 22.3 10.5 -7.3 10.0 25.1 18.1 17.7 13.0 13.0 15.4 10.7 27.4 17.2 23.6 15.2 14.5 20.9 25.7 22.5 22.0 24.5 17.0 16.5 %-points -1.7 5.3 -1.6 9.3 2.5 -4.4 %-points 7.5 4.8 9.0 11.5 1.6 5.8 25.7 21.1 21.1 18.7 17.2 17.1 25.1 19.1 21.2 18.7 15.5 17.6 %-points -0.7 -2.0 0.1 0.1 -1.6 0.5 Page 2 of 3
39. TA Securities 11-May-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) 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. 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 3 of 3
40. TA Securities RESULTS UPDATE Tuesday , May 09, 2017 STI: 3,236.98 A Member of the TA Group Sector: Finance MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Overseas-Chinese Banking Corp. TP: S$ 11.10 (+7.8%) Last Traded: S$ 10.30 Wealth Management Rises to New Highs HOLD THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Tel: +603-2167 9610 liwong@ta.com.my Review Alongside peers, OCBC posted a stronger set of 1QFY17 results. Registering QoQ and YoY increases, 1Q net profit accelerated to S$973mn. Net profit came within expectations as it accounted for 26% and 27% of ours and consensus estimates. ROE widened to 10.8% in 1QFY17 from 10.1% a year ago. Net interest income (NII) continued its descent, falling by 2.7% YoY to S$1,272mn as strong asset growth was offset by a decline in the net interest margin (NIM) owing to compression in loan yields and lower LDR. Advances in loans were broad-based across most industry segments and key markets. Rising 8% YoY and 2% QoQ, loan growth was underpinned by increases in Indonesia (+12% YoY, +4% QoQ), Singapore (+8% YoY, +2% QoQ) and Greater China (+4% YoY, flat QoQ). In constant currency terms, loan volumes climbed 8% YoY (+4% QoQ) on the back of higher housing loans, other consumer-related loans and loans to the financial sector. Net interest margin (NIM) slipped 1 bp QoQ and 13 bps YoY to 1.62%. Lower customer loan yields and excess liquidity placed in high quality but lower yielding interbank placements resulted in the YoY decline in NIM. Compared to 4QFY16, NIM dipped mostly attributed to a larger amount of interest income not being recognised on NPLs. Non-interest income (non-NII) rebounded - climbing 5.5% QoQ and 29.7% YoY. Fee income expanded sharply to S$481mn from S$420mn in 4Q and S$374mn a year ago. According to management, the improvement was underpinned by a 70% increase in wealth management income, which was partly attributable to the acquisition of the former wealth and investment management business of Barclays PLC in Singapore and Hong Kong in November 2016. Bank of Singapore’s AUM rose 49% to US$85b. Increases in trading income and income from life and general insurance helped cushion lower investment gains from investment securities. Total allowances stood little changed at S$168mn YoY. Compared to 4QFY16, specific allowances (SA) reduced by more than half on the back of lower formation of new non-performing assets (NPA). Exposure to the oil and gas segment increased by S$1.3bn QoQ, driven by short term traderelated loans and lending to Singapore conglomerates. Management noted that 37% of O&G NPLs are being serviced as pro-active steps are being taken to restructure loans based on stress-test results. This is down from 52% in 4QFY16. The NPL ratio for the sector climbed to 0.62% from 0.43% in March 2016. Excluding the O&G portfolio, the NPL ratio for the rest of the group’s portfolio was relatively stable at 0.66% vs. 0.61% in March 2016. Sequentially, overall NPL ratio and allowance coverage was also stable at 1.25% (4QFY16: 1.26%) and 101% (4QFY16: 100%) respectively. By geography, we note QoQ improvements from all key overseas market except for Singapore, which saw NPAs balloon to S$924mn from S$745mn. OCBC Wing Hang’s 1QFY17 net profit improved by 1% YoY. Decreasing 2% YoY and 14% QoQ, operating profit performance remained weak. Higher allowances resulted in an 18% QoQ decline in net profit although Page 1 of 3 www.taonline.com.my 4 Share Information 2 Bloomberg Code Code 2. Stock Listing 1 Share Cap (mn) OCBC SP O39 STI 4182.5 43079.8 1.00 10.30/8.21 5355.9 69.2 1.1 Market Cap (S$mn) Par Value 52-wk Hi/Lo (S$) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) Selat - 10.8% Aberdeen - 4.8% Lee Foundation - 4.3% Singapore Investments - 3.7% Forecast Revision Forecast Revision (%) Net profit (S$m) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 3,673.1 3,869.7 3,574.0 3,936.0 102.8 98.3 Sell (upgraded) Financial Indicators ROE (%) Net Interest Margin (%) Cost/Income (%) NPL ratio (%) Loan loss coverage (%) BV/ Share (S%) Price/ BV (x) FY17 9.8 1.8 43.7 1.6 94.6 9.3 1.1 FY18 9.8 1.8 43.9 1.2 76.8 9.9 1.0 % of FY 26.0 27.0 Within Within OCBC 5.1 8.9 13.4 19.5 STI 1.9 4.5 11.4 16.0 Scorecard vs TA vs Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg
41. TA Securities 9-May-17 A Member of the TA Group compared to a year ago , the increase in OCBC Wing Hang’s bottomline was due to lower allowances. The momentum in OCBC NISP (the Indonesian unit) remained buoyant. Registering another quarter of encouraging profit growth, net profit surged by 30% QoQ and 23% YoY. The better performance in Indonesia was premised on stronger operating income. Adding to stronger profit growth was an improvement in asset quality where total allowances decreased to Rp205bn from Rp400bn in 4QFY16 in 4QFY16 and Rp276mn a year ago. OCBC Malaysia report stronger earnings with net profit rising 1% YoY and 41% QoQ due to a combination of lower operating expenses and improvement in allowances. Elsewhere, capital ratios remained relatively stable, with proforma common equity tier 1 (CET1) and total capital ratio at 12.1% and 16.5% respectively. Impact No change to our earnings estimates. Outlook OCBC’s results strengthened on the back of strong fee income, improvement in overseas operations and tightly managed expenses. Amid the headwind of challenges envisaged for the remaining part of the year, we believe the group’s diversity of its geographical network and business franchise will continue to drive earnings forward. We see possibilities of wealth management fee income and AUMs rising to new highs, boosted by synergies from the acquisition of Barclay’s wealth business in Asia last year. By geography, Indonesia’s outlook is promising as OCBC NISP continued to perform strongly. Firm grip on cost management along with tight control on headcount and disciplined balance sheet growth could help support our forecast for a single digit earnings growth in 2017. In terms of asset quality, management envisage continued stress in the oil and gas sector, leading to pockets of allowances and NPLs. Nevertheless, management notes that there is sufficient provisions set aside. Strong capital and liquidity position should help the group weather though an increasingly demanding regulatory environment. Valuation and recommendation Rolling valuations forward to FY18, we adjust OCBC’s TP to S$11.10 from S$8.50. Given that we are also more upbeat on the growth prospects in the region, we lowered our market risk premium assumption for the sector to 5.5% from 6.0%. With that, our new TP valued the stock at an implied FY17e PBV of 1.2x vs. current valuation of c. 1.0x. Upgrade OCBC from Sell to HOLD. Page 2 of 3
42. TA Securities 9-May-17 A Member of the TA Group Earnings Summary (S$mn) FYE Dec 2015 2016 2017F 2018F 2019F Net interest income 5,189 5,052 5,654 5,986 6,387 Non-interest income 3,533 3,437 3,540 3,700 3,885 Total operating income 8,722 8,489 9,194 9,686 10,272 Operating expenses 3,664 3,788 4,015 4,256 4,597 Operating profit 5,058 4,701 5,178 5,430 5,676 Net profit 3,903 3,473 3,673 3,870 4,209 EPS (sen) 93.3 83.0 87.8 92.5 100.6 EPS growth (%) 1.6 (11.0) 5.8 5.4 8.8 Gross div (sen) 36.0 36.0 36.0 36.0 36.0 Div yield (%) 3.5 3.5 3.5 3.5 3.5 YTD FY17 1,272 977 2,249 (973) 1,276 (26) (168) 114 (223) 973 23 YoY (2.7) 29.7 9.2 5.4 12.2 8.3 0.6 7.5 13.8 13.7 13.7 1QFY17 Results Analysis (S$mn) YE 31 Dec Net interest income Non interest income Total income Operating expenses Operating profit Amortisation of intangibles Allowances Associates & JVs Tax & non-controlling items Net profit EPS (sen) 1Q FY16 1,307 753 2,060 (923) 1,137 (24) (167) 106 (196) 856 20 4Q FY16 1,251 926 2,177 (981) 1,196 (24) (305) 82 (160) 789 19 1Q FY17 1,272 977 2,249 (973) 1,276 (26) (168) 114 (223) 973 23 QoQ 1.7 5.5 3.3 (0.8) 6.7 8.3 (44.9) 39.0 39.4 23.3 23.3 YoY (2.7) 29.7 9.2 5.4 12.2 8.3 0.6 7.5 13.8 13.7 13.7 YTD FY16 1,307 753 2,060 (923) 1,137 (24) (167) 106 (196) 856 20 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. 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 3 of 3
43. Thursday , 11 May, 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
44. T e c h n i c a l TA Securities V i e w Thursday , May 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: 1,766.56 (-1.59, -0.09%) 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 9-May 1766.56 2.96 4.38 5.55 5.25 5.85 5.07 5.33 9.72 5.74 6.18 4.59 1.24 6.55 9.36 1.29 5.46 9.31 13.90 6.48 3.92 3.43 0.50 0.77 0.44 4.53 1.91 1.51 1.23 1.28 1.73 1.61 2.35 1.35 1.18 1.68 1.54 1.90 2.08 1.27 0.88 2.23 Change (1.59) 0.00 0.00 0.00 0.03 0.02 0.00 -0.02 -0.08 -0.02 0.03 -0.01 0.01 0.01 -0.03 -0.04 -0.01 -0.01 -0.02 0.00 0.06 0.03 0.00 0.00 0.00 -0.06 0.04 0.00 0.02 -0.01 0.00 -0.55 0.05 -0.03 0.04 0.00 -0.01 0.00 -0.02 -0.01 -0.01 0.01 Tel: +603-2167-9607 High Low 1,770.43 1,765.14 2.97 4.38 5.58 5.26 5.88 5.08 5.36 9.84 5.82 6.24 4.61 1.24 6.56 9.41 1.32 5.51 9.33 13.92 6.51 3.93 3.49 0.52 0.78 0.44 4.58 1.95 1.51 1.23 1.29 1.74 1.76 2.38 1.38 1.19 1.71 1.56 1.91 2.11 1.29 0.89 2.31 2.94 4.32 5.50 5.22 5.84 5.03 5.30 9.66 5.74 6.10 4.56 1.22 6.54 9.35 1.28 5.44 9.30 13.88 6.48 3.85 3.38 0.49 0.77 0.44 4.53 1.84 1.50 1.20 1.27 1.73 1.59 2.32 1.35 1.14 1.65 1.50 1.88 2.07 1.26 0.88 2.19 Bollinger Bands Lower Mid Upper 1,725.31 1,754.70 1,784.10 2.76 3.85 4.62 5.02 5.29 5.00 5.04 9.17 5.39 5.96 4.40 1.20 6.34 8.77 1.15 4.99 9.25 13.63 6.35 3.84 2.96 0.35 0.75 0.43 4.22 1.75 1.47 1.18 1.24 1.63 2.19 2.17 1.31 1.02 1.49 1.50 1.87 1.74 1.20 0.88 1.90 2.89 4.11 5.22 5.13 5.63 5.10 5.21 9.66 5.74 6.10 4.53 1.24 6.44 9.24 1.26 5.30 9.30 13.81 6.44 3.99 3.24 0.43 0.78 0.44 4.46 1.85 1.51 1.34 1.28 1.68 2.92 2.28 1.36 1.12 1.61 1.56 1.98 1.93 1.25 0.89 2.11 3.03 4.36 5.82 5.25 5.98 5.20 5.38 10.15 6.08 6.25 4.66 1.27 6.54 9.71 1.37 5.61 9.36 13.99 6.53 4.15 3.52 0.51 0.81 0.46 4.70 1.95 1.54 1.50 1.31 1.74 3.65 2.39 1.40 1.23 1.74 1.62 2.10 2.12 1.30 0.91 2.31 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 59.27 1,767.78 1,751.55 1,742.25 DMI DI + DI - ADX 34.47 17.78 33.14 Diff 16.69 68.18 73.12 69.79 63.11 70.04 44.44 61.22 52.38 52.00 62.48 52.33 53.85 65.57 57.99 54.95 62.37 53.21 61.44 62.63 44.01 75.77 73.37 49.42 43.41 59.24 62.73 49.62 40.03 52.64 61.21 22.39 62.14 52.25 61.54 59.32 46.43 44.35 69.06 53.94 43.05 62.20 30.48 38.14 36.76 29.48 32.07 19.36 30.99 24.30 24.61 28.56 16.56 14.58 15.45 32.61 32.09 24.36 14.98 24.24 26.24 15.89 31.17 38.19 20.86 23.44 27.92 32.31 15.94 14.44 24.88 43.16 16.80 43.61 36.69 35.42 29.28 23.86 16.77 41.79 27.29 26.82 38.39 12.98 25.27 19.29 13.42 19.34 1.21 17.39 8.00 10.22 18.22 (3.40) (1.33) 1.09 8.10 13.33 8.60 (8.23) 14.83 14.17 (9.03) 15.83 31.25 3.73 15.15 17.37 17.37 (0.64) (27.55) 8.36 32.62 (38.98) 27.95 12.37 18.26 11.87 (1.06) (9.78) 26.25 12.27 8.82 27.29 2.95 4.21 5.51 5.18 5.80 5.09 5.28 9.86 5.86 6.17 4.58 1.24 6.47 9.44 1.31 5.44 9.32 13.89 6.47 3.94 3.36 0.47 0.78 0.44 4.57 1.89 1.52 1.33 1.27 1.70 2.86 2.33 1.36 1.17 1.58 1.55 1.96 2.02 1.26 0.89 2.19 2.88 4.10 5.08 5.10 5.61 5.11 5.21 9.63 5.68 6.07 4.57 1.23 6.43 9.15 1.26 5.28 9.31 13.78 6.43 4.02 3.18 0.42 0.77 0.44 4.40 1.82 1.51 1.36 1.28 1.68 2.86 2.26 1.32 1.10 1.65 1.55 1.96 1.89 1.26 0.89 2.07 2.85 4.07 4.99 4.97 5.52 5.10 5.14 9.56 5.56 6.02 4.62 1.21 6.41 9.02 1.23 5.23 9.26 13.74 6.38 3.99 3.03 0.41 0.76 0.44 4.33 1.76 1.51 1.35 1.26 1.69 2.49 2.24 1.30 1.02 1.60 1.55 1.94 1.83 1.24 0.88 1.98 17.50 12.87 17.47 16.06 12.73 18.15 13.60 16.30 14.39 10.34 19.97 15.91 14.36 24.51 18.75 15.76 23.21 9.41 12.08 24.92 15.34 6.94 22.89 19.70 12.77 14.94 16.58 41.98 16.52 10.54 55.78 15.66 24.32 17.16 17.41 24.92 26.55 15.53 15.02 18.00 11.10 30.99 26.63 36.42 23.40 33.52 14.85 24.91 34.93 31.86 32.83 16.20 16.56 7.83 32.42 31.46 22.81 13.62 26.25 29.11 19.57 38.49 42.48 20.26 18.43 31.88 38.19 17.56 35.56 24.47 29.24 43.01 33.07 27.44 37.19 26.70 20.39 16.15 38.63 20.05 27.67 30.15 www.taonline.com.my Line 8.33 0.04 0.07 0.19 0.06 0.10 -0.01 0.05 0.10 0.08 0.04 -0.01 0.00 0.03 0.13 0.02 0.08 0.01 0.05 0.03 -0.04 0.11 0.03 0.01 0.00 0.08 0.04 0.00 -0.02 0.01 0.01 -0.02 0.03 0.02 0.04 0.00 0.00 -0.01 0.07 0.01 0.00 0.08 MACD Signal 8.27 0.04 0.04 0.16 0.06 0.08 -0.01 0.04 0.11 0.10 0.04 -0.02 0.00 0.02 0.14 0.02 0.06 0.02 0.05 0.03 -0.02 0.11 0.02 0.01 0.00 0.08 0.04 0.00 0.00 0.01 0.00 0.14 0.03 0.02 0.04 -0.01 0.00 0.01 0.06 0.01 0.00 0.06 Diff 0.062 DMI MACD Recent Signal BUY BUY DMI MACD Signal Change - 0.003 0.031 0.025 0.004 0.017 (0.009) 0.012 (0.007) (0.019) 0.007 0.011 (0.001) 0.011 (0.012) 0.002 0.016 (0.004) 0.009 (0.003) (0.017) 0.007 0.008 (0.003) (0.001) 0.003 (0.001) (0.001) (0.024) (0.002) 0.008 (0.164) 0.003 0.000 (0.003) 0.005 (0.000) (0.016) 0.012 0.002 (0.002) 0.010 BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY SELL SELL BUY BUY BUY BUY SELL BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL SELL BUY BUY SELL BUY BUY BUY BUY SELL SELL BUY BUY BUY BUY BUY SELL - BUY BUY BUY BUY BUY SELL BUY SELL SELL BUY BUY SELL BUY SELL BUY BUY SELL BUY SELL SELL BUY BUY SELL SELL BUY SELL SELL SELL SELL BUY SELL BUY BUY SELL BUY SELL SELL BUY BUY SELL BUY SELL BUY 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
45. Technical Comments : BUY KimLun & Mudajaya KimLun needs breakout confirmation above the 123.6%FP (RM2.39) to aim for the 138.2%FP (RM2.37), 150%FP (RM2.54) and 161.8%FP (RM2.60) ahead, while key breakout support at RM2.26 is reinforced by the 50-day ma (RM2.24). Sustained strength on Mudajaya above the 61.8%FR (RM1.17) will promote further strength towards the 76.4%FR (RM1.28), with tougher hurdle seen from the 6/4/16 peak (RM1.45). Key retracement support is available at the 50%FR (RM1.08). KIM LUN RM2.35 (+0.05) Upper Middle BOLLINGER BANDS RM RM 2.39 2.28 10-day 30-day Lower RM 2.17 50-day BUY Recent Signal DMI Recent Signal 2.24 BUY Signal Change MUDAJAYA Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 2.33 RM 2.26 BOLLINGER BANDS RM RM RM DMI RM1.18 (+0.04) 1.23 1.12 1.02 BUY SIMPLE MOVING AVERAGES RM 1.17 RM 1.10 RM 1.02 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4
46. T e c h n i c a l TA Securities V i e w Thursday , May 11, 2017 FBMKLCI: 1,766.56 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 09.05.2017 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 SMTRACK BHD IRIS CORP BHD FRONTKEN CORP TIGER SYNERGY BH MPAY M3 TECHNOLOGIES PWORTH HOVID BHD PAVILION REIT SIME DARBY PERAK TRANSIT BH MK LAND HLDGS MNC WIRELESS BHD TANCO HLDGS BHD PUC FOUNDER MSC ASIA BIOENERGY T MALAKOFF CORP BH GADANG HLDGS BHD SALCON BHD KUB MALAYSIA BHD BOON KOON GROUP PERISAI PETROLEU BIOALPHA HOLDING SANBUMI HOLDINGS GENTING MALAYSIA ADV SYNERGY BHD PROGRESSIVE IMPA K-ONE TECHNOLOGY SC ESTATE BUILDE SANICHI TECHNOLO Price 0.08 0.19 0.25 0.08 0.24 0.09 0.25 0.35 1.74 9.31 0.26 0.33 0.09 0.13 0.14 0.06 1.24 1.28 0.67 0.59 0.48 0.07 0.27 0.25 5.74 0.20 0.18 0.24 0.05 0.09 RSI Bollinger Band Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.06 0.15 0.22 0.05 0.22 0.08 0.22 0.32 1.72 9.25 0.23 0.31 0.08 0.11 0.13 0.05 1.20 1.24 0.62 0.55 0.45 0.06 0.26 0.22 5.39 0.18 0.16 0.21 0.04 0.07 0.07 0.18 0.24 0.07 0.23 0.09 0.24 0.34 1.74 9.30 0.25 0.32 0.08 0.12 0.14 0.06 1.24 1.28 0.66 0.58 0.47 0.07 0.26 0.25 5.74 0.19 0.17 0.23 0.04 0.08 0.09 0.21 0.26 0.09 0.25 0.09 0.26 0.36 1.76 9.36 0.27 0.34 0.09 0.13 0.14 0.06 1.27 1.31 0.69 0.61 0.50 0.07 0.27 0.27 6.08 0.21 0.18 0.25 0.05 0.09 61.09 57.55 53.91 60.48 52.78 58.60 62.75 55.51 51.36 53.21 62.90 57.35 55.97 56.97 56.34 57.75 53.85 52.64 54.75 54.92 63.93 57.70 54.30 55.63 52.00 56.27 56.37 55.41 59.26 56.03 0.07 0.20 0.25 0.08 0.24 0.09 0.24 0.35 1.73 9.32 0.25 0.32 0.08 0.12 0.14 0.06 1.24 1.27 0.65 0.59 0.47 0.06 0.26 0.24 5.86 0.20 0.17 0.23 0.04 0.08 0.07 0.17 0.24 0.06 0.24 0.08 0.22 0.34 1.74 9.31 0.25 0.33 0.08 0.12 0.14 0.06 1.23 1.28 0.67 0.58 0.44 0.07 0.26 0.25 5.68 0.18 0.17 0.23 0.04 0.08 0.06 0.16 0.24 0.06 0.24 0.07 0.20 0.33 1.74 9.26 0.23 0.32 0.07 0.11 0.13 0.06 1.21 1.26 0.65 0.57 0.33 0.07 0.26 0.22 5.56 0.17 0.17 0.21 0.04 0.08 Vol 34,442,300 19,356,300 15,130,600 14,384,700 13,799,200 13,353,800 10,000,100 8,380,200 7,853,200 6,937,500 6,626,700 6,488,600 5,391,400 5,322,000 5,307,600 4,990,000 4,544,900 4,281,300 4,232,000 3,976,300 3,829,100 3,783,800 3,770,200 3,732,100 3,730,400 3,539,200 3,245,500 2,839,200 2,539,000 2,531,200 20-day avg vol 7,680,005 50,047,350 15,351,380 45,811,450 7,606,690 10,005,780 56,850,410 3,946,315 1,472,385 6,992,130 8,298,990 1,466,395 11,472,400 5,913,500 11,514,850 7,000,655 6,309,995 4,390,990 2,124,420 2,885,115 4,304,030 8,420,625 8,915,270 1,122,770 7,822,335 14,968,220 576,350 3,338,835 2,217,565 4,230,245 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
47. TA Securities A Member of the TA Group *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. [UPPER BOLLINGER BREAKOUT] Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/SELL guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Stock Name Price PENSONIC HLDGS STAR MEDIA GROUP BOILERMECH COMFORT GLOVE BH SIG GASES BHD AWC BHD SEREMBAN ENGINEE XIDELANG HOLDING SUPERMAX CORP HARTALEGA HLDGS CREST BUILDER HO ASIA POLY HOLDIN ACCSOFT TECHNOLO ADVENTA BHD NOTION VTEC BHD MYCRON STEEL BHD PETRON MALAYSIA PROLEXUS BHD NETX HOLDINGS BH 0.69 2.52 0.95 0.71 0.67 1.13 0.75 0.05 2.10 5.39 1.00 0.23 0.35 0.78 1.34 0.91 7.97 1.58 0.10 19.26 AJINOMOTO MALA Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.60 2.28 0.79 0.67 0.54 0.95 0.45 0.03 1.87 4.74 0.89 0.20 0.29 0.68 1.09 0.78 5.88 1.45 0.02 16.75 0.63 2.37 0.85 0.69 0.59 1.02 0.56 0.04 1.96 4.97 0.94 0.21 0.32 0.72 1.19 0.84 6.73 1.50 0.05 17.92 0.67 2.46 0.90 0.70 0.63 1.08 0.67 0.04 2.05 5.19 0.99 0.22 0.35 0.76 1.29 0.89 7.57 1.55 0.08 19.09 73.65 74.45 73.27 59.50 73.19 69.83 80.40 67.51 74.32 77.72 67.21 70.22 60.39 72.64 71.35 66.18 82.96 74.89 83.58 78.48 0.64 2.37 0.86 0.69 0.60 1.04 0.59 0.04 1.95 5.00 0.95 0.21 0.32 0.71 1.21 0.85 7.02 1.50 0.06 18.29 0.63 2.38 0.84 0.69 0.59 1.02 0.55 0.04 1.96 4.95 0.94 0.21 0.32 0.71 1.20 0.82 6.58 1.47 0.04 17.37 0.63 2.40 0.85 0.71 0.60 1.01 0.53 0.03 1.99 4.91 0.94 0.19 0.32 0.69 1.15 0.81 6.34 1.44 0.03 16.39 Vol 2,572,900 1,503,200 3,552,400 6,393,000 1,592,100 10,228,400 2,343,300 33,989,400 9,474,800 2,794,800 1,139,000 14,576,700 441,100 187,600 8,797,900 12,056,700 764,700 1,928,000 192,348,400 74,900 20-day avg vol 295,725 193,730 460,515 914,585 243,515 1,579,595 396,965 6,636,830 1,943,860 586,685 245,885 3,482,880 107,680 47,950 2,266,135 3,260,980 214,750 549,140 55,195,770 21,565 *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. p [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 Stock Name Price ISKANDAR WATERFR TASEK CORP BHD MAGNA PRIMA BHD MEDIA PRIMA BHD ASIA FILE BHD BLD PLANTATION TITIJAYA LAND BH MCT BHD SEE HUP CONSD THONG GUAN IND HAP SENG PLANTAT TRIPLC BHD MNRB HOLDINGS GOH BAN HUAT CIMB FTSE CHINA TSH RESOURCES DUTALAND BHD BHS INDUSTRIES STERLING PROGRES FORMOSA PROSONIC 1.61 13.30 1.43 1.09 3.28 8.40 1.64 1.03 1.00 4.37 2.56 1.68 2.49 1.34 1.40 1.74 0.45 0.43 0.19 0.83 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 2.19 13.35 1.46 1.12 3.30 8.42 1.66 1.05 1.02 4.39 2.57 1.69 2.50 1.35 1.41 1.75 0.45 0.43 0.19 0.83 2.92 13.53 1.52 1.18 3.36 8.53 1.73 1.14 1.05 4.46 2.60 1.76 2.65 1.37 1.47 1.78 0.47 0.45 0.20 0.86 3.65 13.70 1.59 1.24 3.42 8.64 1.80 1.22 1.07 4.54 2.62 1.83 2.81 1.40 1.53 1.81 0.49 0.46 0.21 0.89 22.39 43.32 23.71 34.92 27.18 32.09 29.88 40.17 36.44 34.66 35.71 35.08 40.85 29.85 34.65 37.82 37.94 34.71 34.50 30.33 2.86 13.52 1.51 1.17 3.35 8.50 1.71 1.11 1.04 4.46 2.60 1.73 2.59 1.37 1.44 1.77 0.47 0.44 0.20 0.85 2.86 13.52 1.53 1.17 3.39 8.53 1.74 1.13 1.05 4.49 2.60 1.76 2.60 1.38 1.47 1.80 0.47 0.45 0.20 0.87 2.49 13.34 1.56 1.14 3.43 8.50 1.74 1.07 1.05 4.48 2.61 1.78 2.49 1.39 1.46 1.82 0.47 0.45 0.21 0.90 Vol 237,623,600 9,500 536,900 7,314,800 74,700 10,100 206,200 5,000 8,000 200,300 62,000 217,400 223,300 2,000 5,000 217,900 524,800 279,500 197,200 112,000 20-day avg vol 18,602,390 5,495 178,575 1,513,325 84,615 3,005 1,190,575 8,340 2,645 280,480 42,105 60,805 164,610 10,095 6,975 715,045 510,630 310,350 2,911,795 145,465 Raw data sourced from Bloomberg 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 Page 2 of 2
48. Thursday , 11 May, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED FOREIGN TECHNICAL REPORTS’ Asian Technical Reports 1. Foreign Technical Stock Watch (AUS) 2. Foreign Technical Stock Watch (HK) 3. Foreign Technical Stock Watch (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
49. T e c h n i c a l TA Securities V i e w Thursday , May 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 Foreign Technical Stock Watch Australia ASX: 5,875.40 (+35.50, +0.61%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name ASX 200 BHP BILLITON RIO TINTO COMMONW BK AUSTR WESTPAC BANKING AUST AND NZ BANK NATL AUST BANK WESFARMERS WOODSIDE PETRO NEWCREST MINING WESTFIELD GROUP FORTESCUE METALS QBE INSURANCE ORIGIN ENERGY AMP SANTOS MACQUARIE GROUP SUNCORP GROUP ORICA OIL SEARCH COCA-COLA AMATIL AMCOR STOCKLAND ALUMINA COMPUTERSHARE QANTAS AIRWAYS SIMS METAL MGMT Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD Change High Low 10-May Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change 5875.44 35.54 5888.10 5816.50 5799.49 5885.51 5971.52 51.42 5894.39 5874.56 5824.88 21.34 22.52 15.86 (1.18) 11.19 20.34 (9.151) SELL SELL 23.51 0.35 23.63 23.24 22.36 23.91 25.47 45.50 23.39 23.99 24.27 25.88 31.52 19.73 (5.65) -0.37 -0.33 (0.045) SELL SELL 60.00 1.21 60.05 58.49 57.21 59.61 62.01 50.96 59.22 59.83 60.36 25.62 28.73 16.49 (3.10) -0.52 -0.54 0.024 SELL BUY - BUY 81.73 -0.29 82.59 79.55 82.46 85.58 88.69 33.13 85.28 85.55 84.80 11.32 42.54 20.94 (31.22) -0.43 0.14 (0.571) SELL SELL 32.65 -0.23 33.03 32.14 33.04 34.39 35.74 30.95 34.22 34.50 34.43 14.47 38.78 16.99 (24.31) -0.28 -0.04 (0.236) SELL SELL 29.39 0.23 29.70 28.50 29.45 31.50 33.56 30.71 31.20 31.60 31.52 13.08 44.75 23.25 (31.67) -0.44 -0.08 (0.354) SELL SELL 32.20 -0.22 32.69 31.69 32.02 33.12 34.21 40.91 33.22 33.07 32.78 15.40 30.02 18.87 (14.62) -0.01 0.16 (0.168) SELL SELL 44.12 0.49 44.12 43.65 42.74 43.95 45.17 53.60 43.47 44.19 43.94 21.63 21.30 15.75 0.33 -0.13 -0.12 (0.017) BUY SELL BUY 32.57 0.23 32.74 32.43 31.44 32.56 33.67 54.05 32.21 32.44 31.88 28.58 26.34 13.24 2.24 0.03 0.08 (0.052) BUY SELL BUY 20.10 0.37 20.13 19.90 18.64 22.33 26.03 29.88 20.64 22.57 22.28 18.64 42.40 30.98 (23.77) -0.84 -0.50 (0.338) SELL SELL 8.93 0.03 8.95 8.86 8.87 9.08 9.29 46.10 9.04 9.02 8.87 19.75 21.35 20.03 (1.60) 0.01 0.05 (0.036) SELL SELL SELL 5.13 0.25 5.17 4.92 4.62 5.31 5.99 40.43 5.10 5.60 5.95 17.88 35.50 47.01 (17.62) -0.30 -0.30 (0.001) SELL SELL 13.45 0.47 13.49 13.09 12.35 12.83 13.31 66.64 12.97 12.84 12.79 32.32 14.40 15.12 17.92 0.10 0.04 0.050 BUY BUY 7.85 0.07 7.87 7.76 7.13 7.45 7.78 68.11 7.46 7.32 7.00 43.64 20.18 25.61 23.46 0.16 0.14 0.025 BUY BUY - BUY 5.42 0.06 5.46 5.34 5.16 5.31 5.46 65.59 5.37 5.25 5.14 24.20 7.37 36.61 16.82 0.07 0.07 0.002 BUY BUY 3.67 0.00 3.69 3.64 3.39 3.64 3.89 51.30 3.57 3.69 3.68 26.28 27.34 16.12 (1.06) -0.03 -0.05 0.012 SELL BUY - BUY 91.94 -0.52 92.69 90.31 85.45 90.63 95.81 54.74 92.92 90.03 89.16 31.00 31.78 19.45 (0.77) 1.30 1.15 0.144 SELL BUY SELL 14.55 0.39 14.58 14.23 13.04 13.79 14.53 78.59 14.11 13.55 13.44 41.84 10.57 30.06 31.27 0.28 0.22 0.064 BUY BUY 18.73 0.18 18.77 18.53 17.54 18.24 18.94 59.95 18.53 18.04 18.12 20.39 14.76 19.66 5.63 0.17 0.13 0.042 BUY BUY 7.38 0.01 7.42 7.25 7.04 7.31 7.58 56.48 7.25 7.29 7.15 25.76 22.68 13.26 3.08 0.03 0.03 0.001 BUY BUY - BUY 9.70 0.06 9.71 9.58 8.77 9.95 11.13 38.71 9.53 10.19 10.27 15.15 31.77 39.14 (16.62) -0.24 -0.23 (0.002) SELL SELL 15.49 0.02 15.63 15.39 15.07 15.45 15.82 56.54 15.51 15.34 14.95 24.62 18.58 19.56 6.04 0.12 0.16 (0.042) BUY SELL 4.81 0.02 4.84 4.76 4.77 4.87 4.98 49.87 4.87 4.81 4.72 15.32 23.37 19.49 (8.06) 0.03 0.06 (0.021) SELL SELL 1.73 0.00 1.75 1.72 1.67 1.77 1.86 44.74 1.74 1.77 1.80 20.75 28.04 13.84 (7.28) -0.03 -0.02 (0.006) SELL SELL 15.24 0.12 15.39 15.15 13.23 14.36 15.49 70.34 14.87 14.24 14.07 33.92 16.58 22.56 17.35 0.34 0.25 0.092 BUY BUY 4.77 0.04 4.85 4.70 3.62 4.20 4.79 90.44 4.46 4.12 3.98 51.18 4.97 44.97 46.21 0.21 0.15 0.061 BUY BUY 11.89 0.10 11.95 11.79 11.29 11.97 12.64 46.30 12.02 12.13 12.33 20.08 24.89 13.41 (4.81) -0.12 -0.11 (0.011) SELL SELL - The table below consists of the top 30 ASX 200 Index component stocks, weighted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. 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. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
50. TA Securities A Member of the TA Group 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 30day 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. Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name BHP AU BHP BILLITON LTD RIO AU RIO TINTO LTD CBA AU COMMONW BK AUSTR WBC AU WESTPAC BANKING ANZ AU AUST AND NZ BANK NAB AU NATL AUST BANK WES AU WESFARMERS LTD WPL AU WOODSIDE PETRO NCM AU NEWCREST MINING WFD AU WESTFIELD GROUP FMG AU FORTESCUE METALS QBE AU QBE INSURANCE ORG AU ORIGIN ENERGY AMP AU AMP LTD STO AU SANTOS LTD MQG AU MACQUARIE GROUP SUN AU SUNCORP GROUP LT ORI AU ORICA LTD OSH AU OIL SEARCH LTD CCL AU COCA-COLA AMATIL AMC AU AMCOR LTD SGP AU STOCKLAND AWC AU ALUMINA LTD CPU AU COMPUTERSHARE LT QAN AU QANTAS AIRWAYS SGM AU SIMS METAL MGMT EPS ($) Div Yield(%) PER(x) 52week Price % Chg Close Target Price % upside 23.16 27.44 16% 58.79 70.56 17% 4.64 82.02 84.22 3% 5.65 32.88 34.63 5% 2.40 29.16 32.08 9% 2.34 32.42 33.72 4% 2.44 2.50 13.3 13.0 6.080 6.055 34.09 23.90 5.71 43.63 43.35 -1% 2.58 2.62 16.9 16.7 5.029 5.109 46.06 38.62 3.54 32.34 33.15 2% 1.28 1.46 18.6 16.2 3.154 3.528 33.97 25.10 3.79 19.73 22.08 11% 0.60 0.78 24.4 18.7 0.735 1.075 27.20 16.35 -2.57 8.90 9.47 6% 0.33 0.36 19.8 18.2 2.876 2.921 11.14 8.21 -5.12 4.88 6.20 21% 0.77 0.50 4.7 7.3 6.291 3.914 7.27 2.81 -17.15 12.98 13.98 7% 0.64 0.80 15.0 12.0 3.274 3.837 13.28 9.22 4.51 7.78 7.50 -4% 0.30 0.55 26.0 14.1 0.000 1.362 7.80 4.69 18.06 5.36 5.31 -1% 0.36 0.37 15.1 14.3 5.448 5.672 5.96 4.39 6.35 3.67 4.34 15% 0.13 0.18 20.9 15.0 0.899 1.880 5.07 3.30 -8.71 92.46 95.73 3% 6.60 6.88 14.0 13.4 5.197 5.412 96.37 65.01 6.13 14.16 13.80 -3% 0.90 0.97 15.7 14.5 5.155 5.544 14.30 11.27 4.73 18.55 15.97 -16% 1.06 1.14 17.5 16.3 2.900 3.148 19.49 12.04 4.92 7.37 8.03 8% 0.21 0.25 26.4 21.9 1.180 1.425 7.75 6.19 2.79 -4.74 2017 2018 2017 2018 2017 2018 High Low YTD 1.46 1.25 11.7 13.6 3.696 3.454 27.96 17.29 -7.58 3.45 9.3 12.5 4.652 3.495 69.80 41.51 -1.85 5.86 14.5 14.0 5.176 5.328 87.74 69.22 -0.47 2.50 13.7 13.2 5.721 5.751 35.39 27.57 0.86 2.41 12.5 12.1 5.514 5.586 32.95 22.66 -4.14 9.64 9.47 -2% 0.55 0.57 17.4 16.9 4.761 4.886 10.87 7.94 15.47 15.97 3% 0.61 0.65 18.7 17.5 2.754 3.090 16.66 13.62 3.48 4.79 4.83 1% 0.32 0.34 14.9 14.2 5.365 5.574 5.11 4.03 4.59 1.73 1.79 3% 0.11 0.10 11.9 13.1 6.012 5.954 2.04 1.21 -5.46 15.12 14.07 -7% 0.56 0.62 19.9 17.9 1.772 1.898 15.31 8.63 21.35 4.73 4.70 -1% 0.53 0.54 8.99 8.71 3.150 3.636 4.77 2.58 42.04 11.79 12.31 4% 0.63 0.71 18.8 16.6 3.232 3.257 13.62 7.40 -8.11 Note : The above data is based on Bloomberg consensus. 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 Page 2 of 2
51. T e c h n i c a l TA Securities V i e w Thursday , May 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 Foreign Technical Stock Watch Hong Kong HSI: 25,015.42 (+126.39, +0.51%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Close Name 10-May HANG SENG 25,015.42 HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA GALAXY 67.35 85.45 6.34 5.10 8.90 24.15 3.79 116.80 5.29 250.40 194.20 100.70 45.50 6.21 18.08 83.70 3.21 32.80 162.70 15.66 73.95 19.64 66.80 22.05 71.55 6.07 49.55 5.89 3.51 10.38 32.70 5.92 46.70 13.40 18.56 9.69 20.60 21.90 14.00 3.47 10.88 11.36 8.66 2.67 2.39 55.65 34.60 40.35 Change Tel: +603-2167 9607 High Lower 126.39 0.20 0.65 0.07 0.06 (0.01) 0.50 0.05 (0.70) (0.03) (0.40) (0.20) 2.25 1.65 (0.02) (0.12) (0.30) (0.07) 0.05 0.00 0.00 (0.40) 0.28 (0.20) 0.00 (0.20) 0.00 0.35 0.02 (0.08) 0.34 0.30 0.03 0.30 0.00 0.22 0.01 (0.05) 0.20 (0.30) (0.16) (0.26) 0.10 (0.07) 0.00 0.00 0.25 (0.35) (0.75) 25,164.97 24,931.82 67.60 85.55 6.39 5.12 8.94 24.65 3.83 118.50 5.35 255.40 198.00 100.80 46.10 6.29 18.28 84.10 3.30 33.05 163.50 15.72 74.90 19.68 67.25 22.30 71.75 6.10 49.70 5.97 3.63 10.48 32.70 5.92 46.95 13.58 18.70 9.75 20.85 21.95 14.44 3.62 11.18 11.38 8.78 2.70 2.39 56.00 35.30 41.55 67.00 84.70 6.30 5.05 8.87 23.75 3.74 116.80 5.26 249.20 194.00 98.65 43.90 6.16 18.00 82.70 3.21 32.70 162.20 15.60 73.95 19.40 66.25 22.00 71.20 6.06 49.30 5.86 3.48 10.04 32.40 5.81 46.50 13.34 18.34 9.67 20.40 21.75 14.00 3.46 10.86 11.24 8.58 2.66 2.38 55.05 34.20 40.20 RSI Bollinger Bands Low 23,757.39 60.95 82.38 6.10 4.90 8.69 22.39 3.63 115.32 5.20 221.84 188.63 92.59 41.23 6.04 17.74 78.98 3.20 30.59 152.21 15.18 72.67 19.04 65.51 21.79 66.97 4.67 48.51 5.73 3.44 9.78 30.77 5.72 43.41 12.81 18.20 9.45 20.06 21.44 13.51 3.47 10.77 10.73 8.24 2.63 2.32 46.71 33.97 40.10 Mid stsoo@ta.com.my Upper 14d 24,393.44 25,029.48 66.76 64.26 84.05 6.25 5.02 9.12 23.27 3.72 117.07 5.52 238.19 192.57 96.21 43.00 6.30 18.09 81.54 3.27 31.78 157.99 15.55 75.02 20.00 66.49 22.70 69.44 5.47 49.27 5.91 3.86 10.28 31.88 6.01 44.85 13.20 18.78 9.67 21.68 22.19 14.03 3.88 11.09 11.08 8.49 2.68 2.37 51.76 35.92 42.45 67.56 85.72 6.39 5.15 9.56 24.14 3.81 118.82 5.83 254.54 196.50 99.83 44.77 6.55 18.45 84.09 3.33 32.98 163.76 15.92 77.36 20.96 67.48 23.60 71.91 6.26 50.04 6.10 4.28 10.78 32.98 6.29 46.28 13.58 19.35 9.89 23.30 22.94 14.55 4.28 11.40 11.43 8.73 2.73 2.42 56.82 37.86 44.80 75.75 56.03 55.24 55.14 37.46 59.50 54.19 52.33 27.94 71.76 53.93 74.42 71.46 48.23 52.26 65.95 35.86 66.61 63.60 59.00 37.58 44.88 53.32 36.57 70.99 82.85 60.40 46.04 27.98 55.65 59.85 39.91 77.96 54.05 51.34 51.18 40.16 46.98 49.37 31.54 39.21 58.70 55.29 37.43 54.50 75.32 42.36 42.06 Moving Averages 10d 24,668.67 65.52 83.88 6.29 5.06 8.96 23.56 3.75 116.98 5.39 245.44 192.11 97.73 43.72 6.25 18.14 82.22 3.26 32.22 160.03 15.52 74.58 19.80 66.59 22.38 70.45 5.75 49.15 5.94 3.69 10.12 32.33 5.92 45.36 13.18 18.61 9.63 21.16 22.07 13.95 3.73 11.16 11.22 8.58 2.67 2.35 53.99 35.25 42.03 30d www.taonline.com.my DMI 50d DI + DMI MACD DI - ADX Diff Line Signal Diff MACD Recent Signal DMI MACD Signal Change 24,361.16 24,184.65 36.49 18.18 18.00 18.31 188.53 136.91 51.616 BUY BUY - - 63.92 84.78 6.28 5.06 9.17 23.50 3.77 116.40 5.59 234.03 193.62 96.29 43.19 6.30 18.19 81.50 3.36 31.89 158.05 15.56 76.04 20.17 66.85 22.72 68.73 5.34 49.02 5.96 3.91 10.36 32.00 6.19 44.39 13.39 18.51 9.68 21.69 22.25 14.07 3.87 11.14 11.08 8.53 2.79 2.37 51.04 35.95 42.46 63.72 85.29 6.29 5.06 9.14 23.73 3.82 115.34 5.70 226.19 193.94 96.16 42.76 6.17 17.53 80.48 3.46 31.69 158.53 15.35 77.41 20.09 66.06 23.33 68.64 5.33 47.70 6.03 3.97 10.07 32.06 6.52 43.39 13.41 18.23 9.80 21.59 21.98 14.18 3.93 11.26 11.12 8.52 2.93 2.38 50.38 35.08 40.98 11.04 19.33 23.65 20.41 26.35 18.72 26.05 17.43 32.46 9.81 17.95 14.50 12.85 23.32 19.16 14.23 21.78 14.29 13.96 14.56 20.44 24.42 14.13 25.03 6.34 10.27 20.23 28.24 29.71 17.33 15.86 28.99 9.53 17.99 14.93 23.32 28.33 21.03 18.00 29.91 18.60 16.98 16.33 19.31 17.65 11.89 22.06 23.43 27.34 17.50 13.43 14.33 24.16 16.34 19.11 13.76 32.02 41.35 18.04 20.07 27.12 17.68 15.24 23.54 30.19 23.15 24.02 26.01 17.11 16.06 19.17 17.97 33.48 34.07 20.81 18.79 24.16 19.80 13.73 33.29 39.15 20.02 27.07 14.06 18.56 17.71 12.14 18.17 17.44 17.57 11.32 21.88 21.91 31.70 17.33 28.03 32.43 3.51 (1.87) 1.71 (11.85) 11.70 1.40 (1.08) (20.04) 30.20 11.38 15.23 25.79 (1.71) (0.95) 13.23 (5.94) 12.98 11.52 5.76 (0.71) (6.04) 8.48 (8.73) 22.44 44.75 5.93 (5.53) (18.44) 4.66 4.74 (15.41) 30.02 3.29 7.96 (0.81) (8.38) (5.25) 6.51 (16.12) 0.24 1.81 6.70 (2.98) 18.85 28.10 (0.58) (3.10) 0.89 -0.31 0.00 0.00 -0.10 -0.01 -0.02 0.56 -0.12 6.69 -0.61 0.88 0.39 -0.01 0.12 0.74 -0.06 0.28 1.17 0.05 -0.94 -0.20 0.16 -0.35 0.86 0.24 0.36 -0.04 -0.13 -0.02 0.13 -0.16 0.77 -0.04 0.08 -0.03 -0.33 -0.08 -0.06 -0.11 -0.03 0.04 0.04 -0.07 0.00 1.58 -0.22 -0.10 0.466 0.266 0.003 0.004 (0.026) 0.086 0.009 (0.162) (0.019) 0.556 0.189 0.440 0.176 (0.028) (0.043) 0.226 0.009 0.142 0.802 (0.000) 0.019 (0.083) (0.061) (0.067) 0.286 0.086 (0.136) (0.006) (0.038) (0.027) 0.114 0.006 0.111 0.032 (0.099) (0.003) (0.198) (0.089) 0.008 (0.052) (0.010) 0.033 0.019 0.009 0.002 0.438 (0.241) (0.443) BUY BUY SELL BUY SELL BUY BUY SELL SELL BUY BUY BUY BUY SELL SELL BUY SELL BUY BUY BUY SELL SELL BUY SELL BUY BUY BUY SELL SELL BUY BUY SELL BUY BUY BUY SELL SELL SELL BUY SELL BUY BUY BUY SELL BUY BUY SELL SELL BUY BUY BUY BUY SELL BUY BUY SELL SELL BUY BUY BUY BUY SELL SELL BUY BUY BUY BUY SELL BUY SELL SELL SELL BUY BUY SELL SELL SELL SELL BUY BUY BUY BUY SELL SELL SELL SELL BUY SELL SELL BUY BUY BUY BUY BUY SELL SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY - BUY BUY BUY BUY BUY BUY BUY SELL BUY - 43.47 22.84 21.79 22.12 14.50 30.41 27.45 16.35 12.42 40.01 29.34 29.73 38.64 21.62 18.21 27.46 15.85 27.26 25.48 20.32 19.73 18.38 22.61 16.30 28.77 55.02 26.16 22.71 11.27 21.99 20.60 13.58 39.55 21.27 22.90 22.51 19.95 15.78 24.51 13.79 18.84 18.79 23.03 16.33 36.50 39.99 21.48 20.33 0.43 -0.57 0.00 0.00 -0.08 -0.09 -0.03 0.72 -0.10 6.13 -0.80 0.44 0.22 0.01 0.16 0.51 -0.07 0.14 0.37 0.05 -0.96 -0.11 0.22 -0.28 0.57 0.15 0.50 -0.03 -0.09 0.01 0.01 -0.17 0.66 -0.08 0.18 -0.03 -0.13 0.01 -0.07 -0.05 -0.02 0.01 0.02 -0.08 -0.01 1.14 0.03 0.34 The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. 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. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
52. TA Securities A Member of the TA Group 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 30day 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. Fundamentals of Foreign Technical Picks Bloomberg Ticker 5 941 939 1398 883 2628 3988 16 857 700 388 1 2318 386 1088 2 494 2388 11 3 19 101 4 688 6 1880 12 3328 1898 762 23 330 66 83 291 17 1109 144 836 2600 293 267 1199 2038 678 1299 1928 27 HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price % upside 2017 2018 2017 2018 2017 2018 High Low YTD HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA LTD GALAXY 67.15 63.94 -5% 0.6 0.7 14.4 13.1 0.8 0.8 69.10 44.50 7.87 84.80 106.03 20% 5.6 6.1 13.3 12.4 3.1 3.3 99.30 80.30 3.16 6.27 7.64 18% 0.9 1.0 5.9 5.6 4.5 4.8 6.55 4.50 5.03 5.04 6.08 17% 0.8 0.8 5.7 5.5 4.7 4.9 5.27 3.82 8.91 11.19 20% 0.6 0.8 13.7 10.3 3.7 4.0 10.88 8.70 -8.14 23.65 28.29 16% 0.9 1.1 22.9 18.7 1.3 1.5 25.50 16.00 17.08 3.74 4.47 16% 0.6 0.6 5.8 5.4 4.7 5.0 4.08 2.90 8.72 117.50 129.22 9% 8.8 9.6 13.3 12.2 3.4 3.5 123.30 85.40 19.90 8.39 5.32 6.69 20% 0.2 0.4 20.3 12.6 2.0 3.0 6.38 4.92 -7.96 250.80 262.59 4% 6.2 7.9 36.0 28.2 0.3 0.4 250.80 153.70 32.21 194.40 197.45 2% 5.6 6.2 34.7 31.2 2.6 2.8 213.20 175.00 6.11 98.45 113.98 14% 9.3 10.1 10.6 9.8 2.9 3.2 103.90 80.60 12.00 43.85 55.80 21% 3.7 4.1 10.5 32.50 13.02 6.23 7.38 16% 0.5 0.5 12.1 11.1 4.1 4.5 6.57 4.96 13.27 18.20 19.12 5% 1.6 1.5 9.9 10.6 3.3 3.3 19.78 11.40 24.66 84.00 79.90 -5% 5.1 5.2 16.6 16.3 3.4 3.5 84.35 69.65 17.89 3.28 3.16 -4% 0.0 0.0 15.0 13.6 0.8 0.8 4.52 3.18 -3.81 32.75 35.71 8% 2.7 2.9 12.3 11.4 4.1 4.3 32.90 21.01 18.02 162.70 155.26 -5% 9.3 10.1 4.1 164.40 127.60 12.75 15.66 12.81 -22% 0.6 0.6 26.3 25.2 2.4 2.5 15.92 12.95 13.97 74.35 77.17 4% 5.0 5.2 15.0 14.2 3.6 3.9 94.40 72.20 0.41 19.36 20.19 4% 1.2 1.1 16.1 17.9 3.9 3.9 21.00 13.64 17.76 67.00 66.62 -1% 4.7 4.8 14.3 13.8 3.3 3.4 69.95 40.50 29.97 22.05 28.42 22% 3.2 3.6 6.9 6.2 3.7 4.2 27.85 20.15 7.30 71.75 74.41 4% 3.5 3.6 20.7 20.0 3.9 4.0 72.92 62.78 12.28 17.4 9.5 16.1 1.6 3.9 1.8 44.95 6.07 5.42 -12% 0.4 0.4 13.5 13.3 3.9 4.0 6.15 4.07 39.22 49.20 50.20 2% 3.3 3.2 14.9 15.2 3.2 3.2 50.20 39.64 19.27 5.87 6.00 2% 0.9 0.9 5.8 5.6 4.7 4.9 6.44 4.46 3.59 4.67 23% 0.3 0.3 9.8 10.5 2.7 2.3 4.88 2.92 -2.45 10.04 12.55 20% 0.2 0.4 41.8 21.6 0.7 1.4 11.20 7.70 11.18 32.40 25.91 34.75 26.35 4.63 -25% 2.2 1.8 14.5 18.0 2.9 2.5 5.89 5.89 0% 0.0 0.2 203.1 36.6 0.0 1.3 7.62 5.34 -3.28 46.40 39.91 -16% 1.6 1.6 29.3 28.4 7.1 2.4 46.50 35.55 23.08 13.40 13.87 3% 0.8 0.8 15.9 16.1 3.8 3.8 14.48 10.96 15.32 18.34 19.04 4% 0.6 0.7 28.5 24.5 1.0 1.2 19.60 14.46 19.09 9.68 11.17 13% 0.8 0.8 12.5 11.8 4.5 4.6 10.46 6.91 18.05 20.65 28.25 27% 7.5 6.5 21.70 24.73 12% 1.6 1.7 13.4 13.0 3.5 3.7 23.80 18.80 12.79 14.30 15.27 6% 1.3 1.5 10.9 9.3 5.8 6.0 15.10 10.70 16.07 13.44 2.8 3.2 3.8 4.5 23.85 16.50 9.09 18.41 3.63 4.65 22% 0.2 0.2 16.8 13.5 0.4 0.6 4.45 2.25 11.14 9.91 -12% -0.2 0.2 N/A 54.3 0.3 0.7 13.08 10.00 11.26 12.35 9% 1.6 1.7 7.2 6.7 3.0 3.8 12.78 10.54 1.44 8.73 9.09 4% 0.1 0.1 14.2 13.2 0.4 0.4 8.87 7.28 12.07 171.5 2.67 14.3 0.5 0.6 3.34 2.31 9.22 3.08 13% 0.0 0.0 2.39 2.45 2% 0.0 0.0 N/A N/A 0.0 0.0 2.80 2.00 5.75 55.40 60.53 8% 0.4 0.4 19.0 17.1 0.2 0.3 55.45 42.30 26.63 8.98 34.95 38.38 9% 0.2 0.2 23.6 21.1 0.7 0.7 39.30 24.60 3.71 41.10 46.11 11% 1.8 1.9 23.4 21.5 1.2 1.4 44.45 21.73 22.36 Note : The above data based on Bloomberg consensus. 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 Page 2 of 2
53. T e c h n i c a l TA Securities V i e w Thursday , May 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 • Foreign Technical Stock Watch FSSTI: 3,249.97 (+12.99, +0.40%) Singapore THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Stock Name FSSTI SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI YZJ Close Change 9-May 3,249.97 12.99 3.72 20.50 10.46 23.55 63.66 3.47 7.60 3.64 1.10 6.63 7.45 10.70 2.38 1.30 10.78 41.23 3.40 46.14 0.38 3.85 1.94 1.96 3.14 1.77 2.73 2.72 3.92 0.50 1.24 0.00 0.20 0.16 0.11 0.34 0.00 (0.07) (0.02) (0.01) (0.03) 0.02 0.15 (0.02) (0.05) 0.04 (0.17) 0.01 (0.80) 0.01 0.02 0.02 0.02 (0.06) (0.02) 0.03 (0.04) 0.00 0.01 (0.03) Tel: +603-2167 9607 stsoo@ta.com.my High Low Bollinger Bands RSI Lower Mid Upper 14d 3,250.26 3,237.69 3,104.59 3,180.70 3,256.81 71.96 Moving Averages 10d 30d 50d DI + 3,207.87 3,177.59 3,160.74 32.57 DI 15.75 ADX 19.14 Diff 16.82 MACD Line Signal Diff 23.18 15.01 8.169 DMI MACD Recent Signal BUY BUY 3.72 20.64 10.46 23.55 64.15 3.50 7.68 3.67 1.11 6.68 7.46 10.70 2.39 1.35 10.80 41.40 3.42 46.90 0.38 3.86 1.95 1.96 3.19 1.80 2.74 2.74 3.94 0.50 1.28 3.70 20.40 10.33 23.29 62.98 3.45 7.53 3.62 1.09 6.60 7.43 10.60 2.35 1.30 10.64 40.82 3.39 45.52 0.37 3.83 1.91 1.95 3.14 1.77 2.69 2.72 3.89 0.49 1.23 3.74 19.94 10.03 22.66 64.48 3.51 7.69 3.68 1.10 6.57 7.43 10.38 2.38 1.36 10.75 41.97 3.42 47.32 0.36 3.81 1.91 1.97 3.10 1.72 2.73 2.77 3.80 0.49 1.19 25.18 12.32 9.61 14.67 23.27 21.58 18.18 18.21 20.77 24.54 20.75 13.32 13.62 36.91 16.33 21.96 25.99 23.53 15.71 11.80 21.04 25.67 25.39 23.96 14.89 24.30 6.31 20.33 11.92 35.17 26.28 26.78 25.53 20.79 20.19 39.95 12.79 23.47 18.08 15.50 13.16 49.48 53.60 25.90 27.43 21.75 21.38 22.05 20.15 24.21 20.85 23.18 24.61 27.49 14.10 35.93 21.99 31.10 (13.23) 29.52 34.21 25.67 (12.34) (7.85) 4.06 (0.88) 5.16 (1.86) (4.71) 19.11 16.98 (28.00) 8.36 (0.36) (8.32) (2.13) 12.45 9.40 2.52 (8.18) 2.77 9.09 8.31 (9.27) 33.66 (3.13) 18.95 -0.04 0.37 0.18 0.42 -0.33 -0.02 0.06 0.00 0.02 -0.06 -0.04 0.11 0.03 -0.16 0.18 0.21 -0.03 0.55 0.00 0.04 -0.01 0.00 0.00 -0.02 0.04 -0.03 0.06 -0.01 0.03 SELL BUY BUY BUY SELL SELL BUY SELL BUY SELL SELL BUY BUY SELL BUY SELL SELL SELL BUY BUY BUY SELL BUY BUY BUY SELL BUY SELL BUY 3.66 18.18 9.26 20.81 63.29 3.43 7.58 3.59 1.05 6.35 7.35 10.00 2.29 1.11 9.96 40.99 3.33 44.31 0.34 3.68 1.87 1.94 2.99 1.61 2.58 2.71 3.56 0.45 1.04 3.76 19.47 9.82 22.23 64.87 3.50 7.70 3.67 1.09 6.67 7.47 10.28 2.35 1.53 10.50 41.80 3.43 46.53 0.36 3.78 1.91 1.99 3.10 1.76 2.69 2.80 3.74 0.48 1.15 3.85 20.76 10.38 23.66 66.44 3.58 7.83 3.75 1.13 6.99 7.60 10.56 2.41 1.96 11.04 42.61 3.54 48.74 0.38 3.87 1.95 2.03 3.21 1.90 2.79 2.89 3.91 0.51 1.26 35.55 68.11 82.61 77.26 41.68 40.25 49.31 46.91 57.55 47.50 44.15 74.59 61.84 28.32 63.82 46.65 41.90 49.47 58.73 62.78 56.06 43.64 52.48 49.87 60.10 32.38 78.19 52.35 64.56 3.81 19.37 9.78 22.15 65.06 3.52 7.66 3.67 1.07 6.74 7.55 10.24 2.34 1.66 10.41 41.86 3.47 45.95 0.37 3.75 1.91 1.98 3.12 1.80 2.66 2.83 3.72 0.49 1.15 3.86 19.21 9.69 21.93 65.18 3.55 7.42 3.66 1.04 6.80 7.54 10.13 2.25 1.83 10.25 40.91 3.49 45.22 0.37 3.72 1.93 1.96 3.16 1.84 2.60 2.84 3.71 0.51 1.13 11.95 41.84 43.82 40.34 10.94 13.73 22.24 17.33 25.93 22.68 16.04 32.42 30.61 8.91 24.69 21.60 17.68 21.41 28.15 21.20 23.55 17.49 28.15 33.05 23.19 15.03 39.97 17.20 30.87 DMI www.taonline.com.my -0.04 0.23 0.10 0.24 -0.16 -0.02 0.09 0.01 0.02 -0.06 -0.04 0.07 0.04 -0.15 0.16 0.36 -0.03 0.71 0.00 0.04 -0.01 0.00 -0.02 -0.03 0.04 -0.02 0.03 -0.01 0.02 0.003 0.140 0.075 0.182 (0.172) (0.001) (0.030) (0.007) (0.003) 0.005 (0.000) 0.035 (0.002) (0.012) 0.016 (0.151) (0.002) (0.155) 0.004 0.003 0.004 (0.006) 0.014 0.006 (0.004) (0.005) 0.024 0.003 0.012 DMI MACD Signal Change - BUY BUY BUY BUY SELL SELL - SELL SELL SELL SELL SELL BUY BUY SELL BUY SELL SELL BUY SELL SELL SELL SELL SELL BUY BUY BUY BUY SELL BUY BUY SELL SELL BUY BUY BUY - The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. 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. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
54. 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 30day 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. Fundamentals of Foreign Technical Picks Bloomberg Ticker ST DBS OCBC UOB JM WIL HKL CAPL GENS KEP SGX SIA FNN NOBL CIT JS SPH JCNC GGR STE OLAM CT SCI SMM CD STH SIE IFAR SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI 3.72 4.21 20.50 10.46 23.55 22.06 -7% 2.0 2.1 12.0 11.2 3.1 3.2 23.55 17.41 15.44 63.66 63.36 0.00 4.1 4.4 15.6 14.6 2.4 2.5 67.27 52.42 15.22 3.47 3.84 10% 0.2 0.2 12.5 11.8 2.0 2.2 4.00 2.96 -3.34 7.60 7.54 -1% 0.4 0.4 19.3 18.7 2.5 2.6 7.88 5.79 20.06 3.64 4.13 12% 0.2 0.2 17.1 17.8 2.8 2.9 3.79 2.85 20.53 1.10 1.07 -3% 0.0 0.0 31.4 28.9 2.6 2.7 1.14 0.69 21.55 6.63 7.06 6% 0.5 0.5 13.8 12.6 3.3 3.6 7.23 5.10 14.51 7.45 7.94 6% 0.3 0.4 22.9 21.0 3.9 4.2 7.84 6.96 4.05 10.70 10.09 -6% 0.4 0.4 24.2 25.4 3.2 2.5 11.67 9.60 10.65 2.38 2.19 -9% 0.1 0.1 30.9 31.3 1.8 1.8 2.42 1.92 13.88 1.30 2.20 0.41 0.2 0.2 5.9 4.3 0.3 0.5 3.14 1.12 -23.82 10.78 10.92 1% 0.6 0.7 16.9 15.7 1.4 1.4 10.93 7.83 30.68 41.23 40.93 -1% 2.7 2.9 15.1 14.1 0.8 0.8 43.78 27.35 24.19 3.40 3.28 -4% 0.1 0.2 22.8 22.5 4.9 4.8 4.05 3.36 -3.68 46.14 50.63 9% 2.2 2.5 14.7 13.4 1.9 2.0 48.50 31.60 11.91 0.38 0.38 0% 0.0 0.0 16.8 15.0 1.8 2.1 0.45 0.33 -11.63 3.85 3.68 -5% 0.2 0.2 22.3 21.2 4.0 4.1 3.86 3.01 19.20 1.94 1.99 3% 0.1 0.1 14.3 13.8 2.5 2.5 2.17 1.58 -1.78 1.96 2.12 8% 0.1 0.1 17.2 16.6 5.6 5.6 2.25 1.87 3.98 3.14 3.29 5% 0.2 0.3 14.2 11.7 2.8 3.3 3.38 2.44 10.18 1.77 1.67 -6% 0.0 0.1 37.6 27.6 1.4 1.6 2.09 1.22 27.90 2.73 2.93 7% 0.2 0.2 17.5 16.7 4.0 4.4 3.02 2.37 10.53 2.72 2.57 -6% 0.2 0.2 16.9 18.1 5.9 5.8 3.97 2.72 -3.20 3.92 3.44 -14% 0.2 0.2 25.5 24.8 3.9 3.8 3.94 3.35 16.32 0.50 0.59 16% 385 434 12.2 10.8 15549 17715 0.60 0.44 -5.71 1.24 1.14 -9% 0.5 0.5 11.6 12.1 16.0 16.0 1.28 0.71 52.15 YZJSGD SP YZJ % upside 2017 2018 2017 2018 2017 2018 High Low YTD 12% 0.2 0.3 15.4 14.5 4.8 5.0 4.36 3.59 1.92 20.60 0% 1.822 1.989 11.3 10.3 3.0 3.1 20.83 14.63 18.22 9.77 -7% 0.9 0.9 12.2 11.1 3.5 3.7 10.46 8.21 17.26 Note : The above data based on Bloomberg consensus. 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 Page 2 of 2