Bursa Malaysia Daily Market Report - 15 November

Transcription

1. Wednesday , 15 November, 2017 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1 . D ai l y M arke t C om men t a ry 2 . D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . Ae on Co. ( M ) B h d: E x p ect s Dou b le D i g it S ale s Gr ow t h in F Y1 8 Te ch n ic al R ep o rt s 1 . D ai l y Te ch n ic a l St o ck Pi cks 2 . D ai l y St o ck S cr een 3 . Fore i gn Te ch n i ca l St o c k W at ch (H K ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
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Daily Market Commentary Wednesday , 15 November 2017 For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my KLSE Market Statistics (14.11.2017) (mil) Main Market 2,134.9 Warrants 259.0 ACE Market 577.7 Bond 7.7 ETF 0.1 LEAP 0.0 Total 2,979.4 Off Market 85.8 Volume +/-chg (RMmn) 335.6 2,440.4 21.7 29.9 -266.1 128.8 -5.4 1.4 -0.05 0.1 -0.03 0.0 2,600.6 -14.1 161.3 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP November 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 (mn) @ @ @ @ @ @ @ @ @ @ @ % chg % YTD chg 1,733.61 12,535.47 17,332.02 1,727.50 -3.88 -21.64 -81.38 -7.50 -0.22 -0.17 -0.47 -0.43 5.60 9.32 17.78 5.63 23,409.47 6,737.87 7,414.42 22,380.01 2,526.64 29,152.12 3,399.09 1,702.63 5,988.29 3,429.55 2,025.78 5,968.75 -30.23 -19.72 -0.76 -0.98 -3.71 -30.06 -20.04 15.58 -33.16 -18.29 -19.39 -53.03 -0.13 -0.29 -0.01 0.00 -0.15 -0.10 -0.59 0.92 -0.55 -0.53 -0.95 -0.88 18.45 25.17 3.80 17.08 24.68 32.51 17.99 10.35 13.06 10.50 2.88 5.35 (RM) Counter 0.03 0.06 9.27 1.06 0.13 4.43 1.18 6.35 0.15 0.03 0.33 SIME PCHEM CIMB DIGI GENTING PETGAS HLBANK GENM IOICORP KLK Exchange Rate USD/MYR 4.1943 0.0033 USD/JPY 113.72 0.4100 EUR/USD 1.172 0.0071 Mkt Cap. Chg (RM’mn) (RM) 61,412 59,200 56,184 37,398 34,735 33,599 32,645 28,002 27,398 26,092 -0.03 -0.05 -0.04 -0.02 -0.27 -0.46 -0.02 -0.11 -0.06 -0.06 Blue chips extended losses on profit-taking Tuesday and weaker regional cue, after China's economic data underwhelmed and uncertainty over US tax reform efforts disappointed investors. The KLCI shed another 3.88 points to close near session lows at 1,733.61, off an early high of 1,744.61, as losers trashed gainers 588 to 300 on higher turnover of 2.98bn shares worth RM2.60bn. Given the weak closing and bearish technical momentum, a breakdown below the April low of 1,729 may accelerate correction towards 1,700 before prices stabilize. Immediate overhead resistance stays at 1,750, next will be 1,763, the 100-day moving average, while tough hurdle is seen from the 8 Aug peak of 1,782. Bearish technical momentum on DiGi point to further downside bias towards the 50%FR (RM4.75), with better retracement support from the 38.2%FR (RM4.65) where buyers should cushion downside, while overhead resistance is from the 76.4%FR (RM4.98). Similar bearish momentum on TM suggests further downward correction potential for share price towards RM5.90 or re-test the 30/12/16 low (RM5.81) before base building again, while overhead resistance is from the 38.2%FR (RM6.22). News Bites • • • • Top 10 KLCI Movers Based on Mkt Cap. Off Market COMPUGT 24.9 TIGER 20.0 MAYBANK 11.9 WASEONG 10.0 LUSTER 5.0 ATLAN 4.4 ENGTEX 2.0 MAGNI 2.0 SNTORIA-WA 1.1 NETX 1.0 HUAAN 1.0 Review & Outlook Value Value/ +/-chg Volume Up Down 413.9 1.14 205 399 -3.4 0.12 57 125 -48.6 0.22 31 58 -0.7 0.18 5 4 -0.04 1.58 1 2 -0.01 0.27 1 0 0.87 300 588 45.8 1.88 Vol. (mn) 6.54 10.99 7.89 1.90 2.51 0.99 0.22 7.25 7.38 0.30 Commodities Futures Palm Oil (RM/mt) 2,735.00 -41.00 Crude Oil ($/Barrel) 55.00 -1.74 Gold ($/tr.oz.) 1,280.30 1.90 • • • • • • • • Important Dates JAG - 1:13 Bonus Issue - BI of up to 123.4m shares. JAG - 1:13 Bonus Issue - BI of up to 246.7m warrants. 1 bonus share for every 13 existing shares held, together with 2 warrants for every 13 existings shares held. LISTING ON: 15/11/2017. • • Sunway Construction Group Bhd said its JV with Taisei Corp of Japan has bagged a RM139.8mn contract from Nippon Express (Malaysia) Sdn Bhd to build a new warehouse in Shah Alam, Selangor. Mudajaya Group Bhd has proposed to issue up to RM245mn of Islamic bonds to part finance the development of a solar photovoltaic energy generating facility of 49MWac in Sungai Siput, Perak. Petra Energy Bhd has bagged a contract on a 'call-out' basis to provide maintenance, construction and modification services under Package B (offshore) Sabah from Petronas Carigali Sdn Bhd. Ho Wah Genting Bhd has proposed to undertake a four-to-one share consolidation as well as diversify into the travel retail business.After the proposed share consolidation exercise, it plans to raise up to RM20.18mn via a private placement of up to 30% of its issued shares. The value of Korea Electric Power Corp's 25% stake in Tadmax Resources Bhd's proposed power plant, which it proposed to buy, will be finalised by August 2018. Scomi Energy Services Bhd's joint-venture company Ophir Production Sdn Bhd has achieved first oil following the completion of its field development plan of the Ophir Field located offshore of the east coast of Peninsular Malaysia. Keretapi Tanah Melayu Bhd is eyeing on embarking on its maiden property development project within the Klang Valley area, slated to be worth RM6bn in the next two to three years, as part of its initiatives to ramp up income from its non-fare segment. AirAsia group CEO Tan Sri Tony Fernandes says the initial share sale plans of the Indonesia and Philippines units are proceeding well. Nestle (Malaysia), Press Metal Aluminium and SP Setia have been included into MSCI Malaysia Index with effect from Nov 30, giving a boost to the companies as they will be under the radar of global fund managers. Robert Kuok controlled Wilmar International is now looking to list its China unit on the Shanghai Stock Exchange in the second half of 2019, eight years after the initial listing plans was first announced. Kejuruteraan Asastera Bhd public portion of its initial public offering has been oversubscribed by 57.33 times. The Malaysian Palm Oil Board yesterday entered into a strategic partnership with e-commerce platform AladdinStreet.com.my to help expand the sale of palm oil, and palm oil based products from raw materials to finished products, in the Chinese market. Malaysia will lower its crude palm oil export tax to 6% in December, down from 6.5% in November. China's fixed-asset investment growth slowed to 7.3% and private sector fixed-asset investment rose 5.8% in the January-October period. VIS - 1:2 Bonus Issue - BI of up to 56.2m shares. JAG - 1:4 Bonus Issue - BI of up to 42.1m warrants. 1 bonus share for every 2 existing shares held, together with 1 warrant for every 4 existings shares held. LISTING ON: 15/11/2017. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. Wednesday , November 15, 2017 FBMKLCI: 1,733.61 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks Chartist: Stephen Soo Tel: +603-2167-9607 stsoo@ta.com.my www.taonline.com.my M a r k e t V i e w Bearish Momentum to Dampen Tone Blue chips extended losses on profit-taking Tuesday and weaker regional cue, after China’s economic data underwhelmed and uncertainty over US tax reform efforts disappointed investors. The KLCI shed another 3.88 points to close near session lows at 1,733.61, off an early high of 1,744.61, as losers trashed gainers 588 to 300 on higher turnover of 2.98bn shares worth RM2.60bn. Break Below 1,729 May Spark Correction to 1,700 Given the weak closing and bearish technical momentum, a breakdown below the April low of 1,729 may accelerate correction towards 1,700 before prices stabilize. Immediate overhead resistance stays at 1,750, next will be 1,763, the 100-day moving average, while tough hurdle is seen from the 8 Aug peak of 1,782. SELL DIGI & TM Bearish technical momentum on DiGi point to further downside bias towards the 50%FR (RM4.75), with better retracement support from the 38.2%FR (RM4.65) where buyers should cushion downside, while overhead resistance is from the 76.4%FR (RM4.98). Similar bearish momentum on TM suggests further downward correction potential for share price towards RM5.90 or re-test the 30/12/16 low (RM5.81) before base building again, while overhead resistance is from the 38.2%FR (RM6.22). Asian Markets Dip Lower on Soft China Data Equity markets were lower in Asia on Tuesday, as Chinese economic data disappointed and investors awaited developments in U.S. tax reform efforts. Data showed that China’s economy lost steam in October, with industrial output, fixed asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution. Sentiment was further dented by signs that liquidity in the banking system remains tight, with China’s benchmark 10-year treasury yields almost touching 4 percent, the highest level in three years. Investors were also waiting for any signs of compromise on U.S. tax policy after U.S. Senate Republicans on Thursday unveiled a plan that would cut corporate taxes a year later than a rival House of Representatives’ bill. Japan’s Nikkei share average ended little changed on Tuesday in choppy trade, with semiconductor equipment makers attracting buyers while Mizuho Financial Group fell on downbeat earnings. The Nikkei ended effectively flat at 22,380.01 after moving in and out of negative territory throughout the day. Across the Korean Strait, the Kospi lost 0.15 percent as automakers and cosmetics names pared gains made in the last session, while in Australia the S&P/ASX 200 fell 0.88 percent as declines in resource stocks and financials dragged on the broader market. Mainland markets also closed lower following the release of a slew of economic data released in the morning. The Shanghai Composite declined 0.52 percent to end at 3,429.97 and the Shenzhen Composite lost 0.95 percent to close at 2,025.78. Page 1 of 8
4. 15-Nov-17 Wall Street Trades Lower as Oil Retreats U .S. stock benchmarks traded lower, but off their intraday lows, on Tuesday, as a drop in crude oil prices hit energy stocks and General Electric shares plunged for a second straight day. Energy was the largest decliner among the 11 S&P 500 sectors as oil prices fell the most in a month. The International Energy Agency forecast rising U.S. crude output and had a gloomy outlook for global demand growth. U.S. crude slid 1.9 percent to USD55.70 a barrel. GE shares fell 5.9 percent to their lowest level since 2011 and have fallen more than 12 percent over the past two days. The company unveiled a massive restructuring plan and slashed its dividend by 50 percent at an investor meeting on Monday. Meanwhile, concerns about delays in much-anticipated corporate-tax cuts out of Washington have been acting as a drag on stocks. The House may vote on its version of the tax cut bill as soon as Thursday, while the Senate continues to hammer out its take. The Dow Jones Industrial Average fell 30.23 points, or 0.13 percent, to end at 23,409.47, the S&P 500 lost 5.97 points, or 0.23 percent, to 2,578.87 and the Nasdaq Composite dropped 19.72 points, or 0.29 percent, to 6,737.87. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Wednesday, November 15, 2017, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 8
5. 15-Nov-17 N e w s I n B r i e f Corporate The Malaysian Palm Oil Board (MPOB) yesterday entered into a strategic partnership with e-commerce platform AladdinStreet.com.my to help expand the sale of palm oil, and palm oil based products from raw materials to finished products, in the Chinese market. This would enable players to capitalise on incentives and facilities offered by the Chinese government under its One Belt, One Road initiative. (The Edge) Malaysia will lower its crude palm oil export tax to 6% in December, down from 6.5% in November, a government circular said on Tuesday. The Southeast Asian nation calculated a palm oil reference price of RM2,833/tonnes for December. Malaysia had last increased the tax to 6.5% in November from the previous month. (The Edge) Robert Kuok controlled Wilmar International is now looking to list its China unit on the Shanghai Stock Exchange in the second half of 2019, eight years after the initial listing plans was first announced. Wilmar’s China operation contributes to half of the group’s revenue and a significant portion of the profits. (The Star) Sunway Construction Group Bhd (SUNCON) said its JV with Taisei Corp of Japan has bagged a RM139.8mn contract from Nippon Express (Malaysia) Sdn Bhd to build a new warehouse in Shah Alam, Selangor. The project is for a period of approximately 22 months. Both JV companies holding equal stakes in the venture. (Bursa/ The Edge) Commentary: YTD, SUNCON has secured RM3.7bn of new jobs, matching our FY17 order book replenishment assumption of RM3.7bn. Its current outstanding order book stands at RM6.8bn. Maintain our Buy call on the stock with an unchanged target price of RM2.65 based on 18x CY18 EPS. Kejuruteraan Asastera Bhd public portion of its initial public offering (IPO) has been oversubscribed by 57.33 times. The electrical and mechanical engineering firm said that a total of 9,998 applications for 933.28mn shares were made by the Malaysian public for the IPO, against 16mn shares available. (Bursa) Mudajaya Group Bhd has proposed to issue up to RM245mn of Islamic bonds to part finance the development of a solar photovoltaic energy generating facility of 49MWac in Sungai Siput, Perak. The Green Sustainable & Responsible Investment Sukuk will be issued on a oneoff basis, where it may comprise one or more series having the same issue date but different maturity dates. (Bursa) Petra Energy Bhd has bagged a contract to provide maintenance, construction and modification services under Package B (offshore) Sabah from Petronas Carigali Sdn Bhd. There is no firm contract value stated in the letter of award as the contract is on a 'call-out' basis based on the work orders issued by Petronas Carigali and will include any or all other work and services which is generally related to the scope of works in this contract at a fixed schedule of rates. (Bursa) Ho Wah Genting Bhd has proposed to undertake a four-to-one share consolidation, as well as diversify into the travel retail business. It is also looking to raise gross proceeds of up to RM20.18mn via a private placement of up to 30% of its issued shares, or 77.62mn shares, after the proposed share consolidation exercise. The proceeds will be used as shareholder's equity and shareholder's loan into a new business venture with Dufry International AG for the operation of a duty and tax free shop in Genting Highlands and for the group's working capital. (Bursa/ The Edge) Page 3 of 8
6. 15-Nov-17 The value of Korea Electric Power Corp 's (Kepco) 25 percent stake in Tadmax Resources Bhd's proposed power plant, which it proposed to buy, will be finalised by August 2018. Its Executive Director, Datuk Noel John, said it would be finalised when the technical and commercial proposals for the implementation of the project were submitted to the Energy Commission by Aug 1, 2018. (Bernama) Scomi Energy Services Bhd's joint-venture company Ophir Production Sdn Bhd has achieved first oil following the completion of its field development plan of the Ophir Field located offshore of the east coast of Peninsular Malaysia. (Bursa/The Edge) Keretapi Tanah Melayu Bhd is eyeing on embarking on its maiden property development project within the Klang Valley area, slated to be worth RM6bn in the next two to three years, as part of its initiatives to ramp up income from its non-fare segment, according to its chief executive officer Mohd Rani Hisham Samsudin. (The Edge) AirAsia group CEO Tan Sri Tony Fernandes says the initial share sale plans of the Indonesia and Philippines units are proceeding well. He said the IPO for the Indonesia carrier is possible by year’s end or next year. Fernandes said there were no regulatory hurdles to the Philippine IPO, which will likely happen in mid-2018. (The Star) Nestle (Malaysia), Press Metal Aluminium and SP Setia have been included into MSCI Malaysia Index with effect from Nov 30, giving a boost to the companies as they will be under the radar of global fund managers. In its November 2017 semi‐annual index review for the MSCI Equity Indexes, MSCI said that under its MSCI Small Cap Index it had included Eco World International, George Kent, Hengyuan and Petron Malaysia. (The Star) LCTH Corp Bhd 3QFY17 net profit rose 3.4% to RM3.47mn from RM3.36mn a year ago on higher operating profit of RM1.8mn, offset by foreign exchange loss of RM1.2mn and the share of loss of a joint venture of RM0.6mn Its 9MFY17 net profit fall 26.1% to RM6.26 million from RM8.46mn a year ago. Moving forward, LCTH Corp expects the economic climate for the rest of 2017 to be challenging. (Bursa) Eastern & Oriental Bhd's 2QFY18 net profit jumped more than 5 times to RM19.68mn from RM3.83mn a year ago, driven by its core property segment's earnings. Its cumulative 6MFY18 net profit surged 5.8 times to RM40.92mn as the property segment’s operating profit more than doubled to RM103.7mn. (Bursa) Lay Hong Bhd's 6MFY17 net profit rose to RM16.59mn from RM3.96mn as revenue rose 18% to RM387.59mn from RM329.93mn on higher quantity and higher priced eggs and frozen products. Plans for an expansion to increase production capacity are on track. (Bursa) Paramount Corp Bhd’s 3QFY17 net profit grew to RM85.76mn from RM11.16mn mainly due to the disposal of its Sri KDU campus, which generated a gain of RM77.8mn. Its 9MFY17 net profit jumped 143% to RM108.72mn. (Bursa) Evergreen Fibreboard Bhd's recorded 3QFY17 net profit of RM15.1mn. Its 9MFY17 net profit fell 41% to RM31.841mn from RM53.96mn due to weaker contribution from its Thailand operations. (Bursa) Apex Healthcare Bhd’s 3QFY17 net profit increased 29% to RM11.27mn from RM8.74mn a year ago on stronger contributions from its consumer products division, as well as pharmaceutical sales to Malaysia and Singapore’s public sector. Its 9MFY17 net profit increased 12.3% to RM31.66mn, from RM28.2mn a year ago, helped by the reinvestment allowance tax incentives provided. (Bursa/The Edge) Page 4 of 8
7. 15-Nov-17 N e w s I n B r i e f Economy Asia China Investment Growth Slows , Industrial Output Misses Expectations China’s fixed-asset investment growth slowed to 7.3% in the January-October period, and came in slightly below market expectations. Analysts polled by Reuters had predicted investment growth of 7.4%. Private sector fixed-asset investment rose 5.8% in JanuaryOctober, down from the first nine months of the year. Industrial output grew 6.2% in October from a year earlier, the National Bureau of Statistics said, just under analysts’ estimates for a rise of 6.3% after increasing 6.6% in September. Retail sales climbed 10.0% in October on-year, versus a forecast rise of 10.4%, after September’s 10.3% gain. The government is targeting annual economic growth of around 6.5% this year, down from the 6.7% pace clocked in 2016. China’s economy has surprised financial markets with robust growth of nearly 6.9% in the first nine months of this year, underpinned by a recovery in its manufacturing and industrial sectors thanks to a government-led infrastructure spending spree, a resilient property market and unexpected strength in exports. But property and construction activity, two of the economy’s main growth drivers, are starting to slow due to higher borrowing costs and government measures to cool a heated housing market and curb industrial pollution. (Reuters) BOJ to Persist With Monetary Easing to Boost Inflation: Kuroda The Bank of Japan will continue to persist with “powerful monetary easing” to nurture positive inflation developments, BoJ Governor Haruhiko Kuroda said in Zurich. “Going forward, with the output gap improving steadily, firms’ stance is likely to gradually shift toward raising wages and prices,” Kuroda said in a lecture at the University of Zurich. “If further price rises come to be widespread, inflation expectations are likely to rise steadily.” “The Bank will continue to persist with powerful monetary easing to ensure that such positive developments are not cut short,” he added. Kuroda launched a massive asset buying program in 2013 to revive inflation with the aim of reaching the Bank of Japan’s 2% target, but inflation remains around 0.5%. Under a policy framework adopted last year, the BoJ now guides short-term interest rates at minus 0.1%, and the 10-year government bond yield around zero percent. (Reuters) Australia's Consumer Confidence Improves Australia's consumer confidence strengthened during the week ended November 12 to the highest level in seven weeks despite the current political uncertainty, a weekly survey compiled by the ANZ bank and Roy Morgan Research showed. The consumer confidence index climbed to 114.8 form 112.6 in the preceding week. The rise was primarily driven by a lift in sentiment towards economic conditions, only slightly offset by a fall in sentiment towards current financial conditions. "Wage and employment data out later this week are likely to drive confidence in the near term," ANZ's head of Australian economics, David Plank, said. "We expect an uptick in Q3 wages due to the larger-than-usual minimum wage hike and a positive number on the employment front, suggesting that confidence should receive some support even as political uncertainty rises." (RTT News) United States US Producer Price Index Up 0.4% in October Vs. 0.1% Increase Expected U.S. producer prices rose more than expected in October, driven by a surge in the cost of services, leading to the biggest annual increase in wholesale inflation in over 5-1/2 years. Report from the Labor Department also showed steady gains in underlying producer prices, which support expectations of a gradual increase in inflation and keep the Federal Reserve on track to raise interest rates in December. The producer price index for final demand increased 0.4% last month after a similar gain in September. In the 12 months through October, the PPI jumped 2.8%, the largest increase since February 2012. The PPI rose 2.6% year-on-year in September. Economists had forecast the PPI edging up 0.1% last month and increasing 2.4% from a year ago. The so-called core PPI increased 2.3% in the 12 months through October after advancing 2.1% in September. A weakening dollar could gradually lift Page 5 of 8
8. 15-Nov-17 core PPI . The dollar has this year lost 5.4% of its value against the currencies of the United States' main trading partners. (CNBC) Janet Yellen Admits the Fed Can be Confusing the Public with Its Many Voices Federal Reserve Chair Janet Yellen said that one of the challenges for the central bank is how its multiple members communicate with the public. "This really is one of the challenges of our system," Yellen told a European Central Bank panel in Frankfurt. "We have a very large committee, 19 people," she said. "We've had a kind of democratization of monetary policy that began really under my predecessor." The discussion panel — which also featured central bank chiefs from Japan, the U.K. and the euro zone — focused on how central banks communicate with the public and the markets about what they are doing to ensure price stability. Yellen said that individual speeches from committee members, mainly before a policy decision meeting, can be a hurdle for the Federal Reserve. (CNBC) Europe and Uni ted Kingdom UK Inflation Holds Steady in October Suggesting Peak in Price Rises Inflation unexpectedly held steady in October, prompting analysts to speculate that price pressures for the UK have now peaked. The Consumer Price Index rose 3% in the year to October, equal to the rate of growth in September, the Office for National Statistics reported. City of London analysts had pencilled in a rise to 3.1%, which would have compelled the Governor of the Bank to write a public letter to the Chancellor explaining why inflation was more than 1 percentage point above the official 2% target. Core inflation, which strips out volatile food end energy prices, was also steady at 2.7%, equal to the previous month. (The Independent) Bank of England to Stretch Out Horizon for Reining in Inflation Due to Brexit The Bank of England will stretch out the horizon over which it plans to rein in inflation to support Britain’s economy as it adjusts to the country’s exit from the European Union, BoE Governor Mark Carney said. “These are exceptional circumstances that the UK is operating in,” Carney told an ECB conference. “During these exceptional circumstances we will stretch out the horizon over which we return inflation to target ... in order to support the economy in the adjustment process.” (Reuters) ECB's Draghi Says Forward Guidance a Success as "Full-fledged" Policy Tool Forward guidance has evolved into a full-fledged monetary policy tool and has been successful, European Central Bank President Mario Draghi said. Speaking at the ECB's first conference on central bank communication in Frankfurt, Draghi said, "Forward guidance was initially protective and not proactive, and it worked." He was part a four-member panel, which included US Fed Chair Janet Yellen, Bank of England Governor Mark Carney and Bank of Japan Chief Haruhiko Kuroda, discussing central bank communication. "Forward guidance is especially important at the zero lower bound," Draghi said. Carney said there was a need for a reasonable transition period post-Brexit. The event has created exceptional circumstances for the UK economy and is having an impact on incomes, he added. (RTT News) Eurozone Growth, Eclipsing U.S. Economy, Set to be Best in Decade The Eurozone’s annual economic growth rate outstripped that of the United States in the third quarter setting up 2017 as the best year for the currency area since financial markets crashed a decade ago. Germany was a major factor, but even some of the bloc’s laggards, such as Italy, showed signs of revival. Eurostat, the European Union statistics office, confirmed a preliminary estimate that euro zone gross domestic product (GDP) grew 0.6% from July to September from the previous quarter and on a year on year basis was 2.5% higher. This was higher than the 2.3% year-on-year rate for the U.S. economy, which had been growing faster than the euro zone. The U.S. quarterly numbers were slightly better than the euro zones at 0.7%, however. (Reuters) Page 6 of 8
9. 15-Nov-17 Industrial Production Down by 0 .6% in Euro Area In September 2017 compared with August 2017, seasonally adjusted industrial production fell by 0.6% in the euro area (EA19) and by 0.5% in the EU28, according to estimates from Eurostat, the statistical office of the European Union. In August 2017, industrial production rose by 1.4% in the euro area and by 1.7% in the EU28. In September 2017 compared with September 2016, industrial production increased by 3.3% in the euro area and by 3.6% in the EU28. The decrease of 0.6% in industrial production in the euro area in September 2017, compared with August 2017, is due to production of capital goods falling by 1.6%, both energy and durable consumer goods by 0.9% and intermediate goods by 0.6%, while production of non-durable consumer goods rose by 0.1%. (The Financial) Germany's GDP Growth Accelerates in Q3 Germany's economic growth accelerated in the third quarter, data published by the Federal Statistical Office showed. Gross domestic product grew 0.8% sequentially, faster than the 0.6% expansion logged in the second quarter. The growth rate was forecast to remain at 0.6%. On a yearly basis, GDP climbed calendar-adjusted 2.8%, following the 2.3% growth seen a quarter ago. GDP was expected to climb again by 2.3%. Likewise, price-adjusted GDP growth improved to 2.3% from 1%. The rate was above the expected rate of 2%. Positive contributions to sequential growth came from foreign trade. In the third quarter, the increase in exports was higher than that of imports. While final consumption expenditure of both general government and households remained rather stable at the previous quarter's level, gross fixed capital formation made a positive contribution to economic growth, data revealed. Another report from the statistical office showed that business insolvencies declined 4.3% on year to 1,712 in August. (RTT News) Germany's Inflation Eases as Estimated in October Germany's inflation slowed as initially estimated in October, final data from Destatis showed. The consumer price index rose 1.6% year-on-year following 1.8% climb in September. A similar slower rate was last seen in June. The rate matched the preliminary estimate published on October 30. Inflation slowed for the first time since May, when it fell to 1.5% from 2%. Month-on-month, the CPI was unchanged from September, when it rose 0.1%. Monthly inflation figure was also similar to the flash estimate. The harmonized index of consumer prices, or HICP that is meant for EU comparison, rose 1.5% year-on-year after a 1.8% increase in each of the previous two months. On a monthly basis, the HICP slid 0.1% in October. Both annual and monthly HICP figures came in line with flash estimate. (RTT News) Germany's ZEW Economic Sentiment at 6-Month High Germany's economic confidence rose to a 6-month high in November, survey data from Mannheim-based think tank ZEW showed. The ZEW Indicator of Economic Sentiment for Germany rose to 18.7 in November from 17.6 in October. This was the highest score since May, when the reading was 20.6. Nonetheless, the score was below the expected level of 19.5. The prospects for the German economy remain encouragingly positive. Overall high levels of growth across Europe in the third quarter are supporting further growth in Germany and boosting expectations for the coming six months, ZEW President Achim Wambach, said. "This favourable economic climate should be used to create a stronger and more robust basis for future growth," Wambach added. The current conditions index of the survey, advanced to 88.8 in November from 87.0 in the prior month. This was the highest since July 2011. The financial market experts' expectations regarding economic development in the Eurozone improved considerably after the drop experienced in the previous month. The corresponding index rose by 4.2 points to 30.9 points in November. Likewise, the indicator for the current economic situation advanced 11.3 to 47.8 points in November. (RTT News) Page 7 of 8
10. 15-Nov-17 Share Buy-Back : 14 November 2017 Company BORNOIL DAIBOCI FFHB LIENHOE SUPERMX UNIMECH Bought Back Price (RM) Hi/Lo (RM) 5,300,000 2,600 13,000 241,700 25,600 5,000 0.10 2.19 0.675/0.665 0.35/0.345 1.87 1.05 0.095/0.09 2.20/2.18 0.675/0.66 0.35/0.345 1.90/1.86 1.05 Total Treasury Shares 62,171,000 695,400 830,800 14,736,600 17,726,600 6,083,810 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 8 of 8
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) BETA EPS (sen) PER (X) Div Yield (%) FY17 FY18 FY17 FY18 FY17 52weeks 52weeks % Chg FY18 High Price % Chg Low Price % Chg YTD 14-Nov-17 AUTOMOBILE BAUTO 2.09 2.50 0.81 10.2 14.3 20.5 14.6 5.6 5.5 2.20 -5.0 1.84 13.6 MBMR 2.16 2.09 1.00 20.7 23.2 10.5 9.3 1.9 2.1 2.60 -16.9 2.01 7.5 -1.9 0.9 PECCA 1.33 1.69 na 7.8 11.1 17.0 12.0 3.8 4.1 1.81 -26.5 1.28 3.9 -16.4 UMW 5.28 5.04 1.38 19.7 30.6 26.8 17.2 2.5 3.8 6.08 -13.2 4.09 29.0 25.0 BANKS & FINANCIAL SERVICES ABMB 3.68 4.80 1.39 33.1 30.6 11.1 12.0 4.3 4.3 4.49 -18.0 3.61 1.9 -1.1 AFFIN 2.48 3.00 0.88 29.4 33.6 8.4 7.4 3.2 3.2 3.00 -17.3 2.22 11.7 3.8 AMBANK 4.35 5.70 1.21 43.9 48.6 9.9 9.0 4.0 4.1 5.70 -23.7 3.90 11.5 0.9 CIMB 6.09 8.00 1.47 49.6 55.2 12.3 11.0 4.1 4.5 7.08 -14.0 4.49 35.6 35.0 HLBANK 15.96 17.50 0.58 104.9 114.2 15.2 14.0 2.8 2.8 16.48 -3.2 12.80 24.7 18.2 MAYBANK 9.34 10.20 0.97 69.6 75.9 13.4 12.3 5.4 5.4 9.86 -5.3 7.63 22.4 13.9 PBBANK 20.46 23.60 0.60 137.2 142.4 14.9 14.4 2.7 2.8 20.90 -2.1 19.46 5.1 3.8 RHBBANK 4.83 5.80 1.44 50.6 55.0 9.5 8.8 3.1 3.1 5.59 -13.6 4.58 5.5 2.5 BURSA 9.95 11.10 0.78 40.2 39.0 24.7 25.5 3.4 3.4 10.98 -9.4 8.08 23.1 14.1 CONSTRUCTION BPURI 0.36 0.38 0.55 4.7 4.6 7.6 7.8 0.0 0.0 0.49 -26.8 0.33 9.2 -18.4 GADANG 1.19 1.75 0.39 15.2 14.3 7.8 8.3 2.5 2.5 1.37 -13.1 0.89 34.5 13.3 GAMUDA 4.79 6.00 0.97 27.8 34.5 17.2 13.9 2.5 2.5 5.52 -13.2 4.65 3.0 0.2 IJM 3.00 3.50 0.89 15.3 20.2 19.7 14.8 2.5 3.2 3.61 -16.9 2.97 1.0 -6.3 PESONA 0.52 0.64 0.68 4.4 6.6 11.8 7.8 4.9 4.9 0.74 -29.9 0.50 3.0 -14.9 SENDAI 0.91 0.58 1.21 8.2 9.6 11.0 9.5 1.1 1.1 1.39 -34.5 0.51 80.2 58.3 SUNCON 2.38 2.55 na 12.7 14.7 18.8 16.2 2.3 2.3 2.43 -2.1 1.58 50.6 40.0 WCT 1.68 1.61 1.00 11.5 12.5 14.6 13.5 1.8 1.8 2.48 -32.1 1.49 12.8 -2.3 LITRAK 5.77 6.26 0.32 41.9 45.7 13.8 12.6 4.3 4.3 6.15 -6.2 5.57 3.6 -1.9 ANNJOO 3.86 4.40 1.18 41.3 45.4 9.3 8.5 5.3 5.7 3.98 -3.0 1.97 95.9 77.9 CHINHIN 1.28 1.58 na 8.3 11.3 15.5 11.4 3.1 4.7 1.49 -14.1 0.85 50.6 47.1 WTHORSE 1.96 1.67 0.50 6.7 10.0 29.2 19.7 5.1 5.1 2.19 -10.5 1.92 2.1 -2.5 CARLSBG 15.42 18.06 0.65 79.3 86.2 19.5 17.9 5.1 5.6 16.00 -3.6 13.72 12.4 10.8 HEIM 18.32 19.14 0.48 79.6 84.0 23.0 21.8 3.9 4.1 19.58 -6.4 15.56 17.7 11.8 AEON 2.00 2.23 0.45 6.5 7.5 30.7 26.6 2.0 2.4 2.81 -28.8 1.95 2.6 -22.2 AMWAY 7.13 8.62 0.33 30.6 38.7 23.3 18.4 4.6 4.9 8.18 -12.8 7.05 1.1 -2.7 F&N 25.48 27.41 0.17 102.6 150.9 24.8 16.9 2.3 2.4 26.00 -2.0 22.44 13.5 8.5 HUPSENG 1.12 1.50 0.37 6.5 6.6 17.2 16.9 5.4 5.4 1.28 -12.5 1.11 0.9 -2.7 10.5 Building Materials CONSUMER Brewery Retail JOHOTIN 1.37 1.80 0.43 13.5 15.1 10.1 9.1 3.1 3.6 1.76 -22.2 1.11 23.4 NESTLE 91.30 92.76 0.39 292.7 325.4 31.2 28.1 3.0 3.1 94.84 -3.7 74.12 23.2 16.8 PADINI 5.18 4.67 0.51 23.5 27.0 22.1 19.2 2.2 2.4 5.49 -5.6 2.26 129.1 104.0 POHUAT 1.98 2.50 0.65 27.3 27.3 7.3 7.3 4.0 4.0 2.08 -4.8 1.55 27.7 14.5 QL 3.94 3.26 0.31 12.1 12.8 32.6 30.7 1.1 1.1 4.03 -2.2 3.26 21.0 18.3 SIGN 0.87 1.08 0.88 6.7 8.6 13.0 10.2 2.9 4.0 1.07 -18.7 0.79 10.8 9.4 39.64 52.08 1.30 198.6 187.4 20.0 21.1 5.0 5.0 51.04 -22.3 37.00 7.1 -10.3 GENTING 9.08 11.54 1.46 50.2 54.4 18.1 16.7 1.5 1.8 10.00 -9.2 7.52 20.8 14.3 GENM 4.94 6.53 1.53 21.0 27.1 23.5 18.2 1.6 1.8 6.38 -22.6 4.42 11.8 9.3 BJTOTO 2.33 3.34 0.79 18.3 21.5 12.7 10.8 6.0 6.9 3.13 -25.6 2.25 3.6 -21.3 LUSTER 0.12 0.15 2.00 0.4 0.4 33.1 33.3 0.0 0.0 0.16 -25.0 0.05 140.0 140.0 Tobacco BAT GAMING Casino NFO HEALTHCARE Hospitals/ Pharmaceutical CCMDBIO 2.16 2.45 0.58 12.7 13.6 17.1 15.9 3.9 4.2 2.43 -11.1 1.90 13.7 9.1 IHH 5.70 6.41 0.71 7.9 13.1 71.8 43.6 0.6 0.6 6.60 -13.6 5.50 3.6 -10.2 KPJ 1.02 1.17 0.39 3.3 4.1 30.8 25.1 1.5 1.8 1.14 -10.5 0.96 6.0 -2.4 HARTA 8.95 6.87 0.66 19.4 24.6 46.1 36.4 0.9 1.2 9.28 -3.6 4.53 97.6 85.3 KOSSAN 7.54 7.35 0.03 33.9 40.0 22.2 18.9 2.2 2.7 7.74 -2.6 5.62 34.2 14.4 SUPERMX 1.87 1.80 0.27 10.6 15.2 17.6 12.3 1.8 2.4 2.38 -21.4 1.69 10.7 -11.4 TOPGLOV 6.83 6.00 -0.30 26.4 29.4 25.9 23.2 2.1 2.1 7.05 -3.1 4.56 49.8 27.7 KAREX 1.57 1.60 0.17 2.8 4.6 56.3 33.9 1.3 0.7 2.62 -40.1 1.37 14.6 -33.5 SCIENTX 8.73 9.38 0.40 52.3 64.9 16.7 13.5 1.8 2.1 9.85 -11.4 6.64 31.5 30.3 SKPRES 2.00 2.20 0.45 8.3 10.4 24.2 19.3 2.1 2.6 2.02 -1.0 1.24 61.3 55.0 ASTRO 2.75 3.40 1.32 13.2 14.5 20.8 18.9 4.5 4.7 2.94 -6.5 2.47 11.3 5.8 MEDIA PRIMA 0.76 0.60 0.47 0.9 2.8 89.2 27.0 0.9 3.0 1.28 -40.6 0.66 16.0 -33.9 STAR 1.43 1.00 0.67 3.3 4.0 43.1 35.4 29.4 12.6 2.22 -35.5 1.43 0.0 -26.6 Rubber Gloves INDUSTRIAL MEDIA
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) BETA EPS (sen) FY17 PER (X) Div Yield (%) FY18 FY17 FY18 FY17 52weeks 52weeks % Chg FY18 High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.46 0.75 1.10 3.6 4.5 12.7 10.2 2.2 2.2 0.69 -33.3 0.23 104.4 80.4 LCTITAN 5.11 6.66 na 42.8 63.4 11.9 8.1 4.5 4.9 6.53 -21.7 4.14 23.4 -21.4 -0.5 MHB 0.91 0.78 1.73 -2.0 -0.5 na na 0.0 0.0 1.16 -21.6 0.63 45.6 MISC 7.38 6.56 1.07 57.2 46.8 12.9 15.8 4.1 4.1 7.90 -6.6 6.91 6.8 0.4 PANTECH 0.67 0.69 1.13 4.0 6.1 16.7 10.8 2.7 4.1 0.74 -10.1 0.44 52.9 49.4 PCHEM 7.40 8.05 0.99 52.7 49.8 14.0 14.9 3.1 3.0 7.80 -5.1 6.54 13.1 6.0 SENERGY 1.45 1.66 2.83 6.6 -0.4 21.9 na 0.7 0.0 2.10 -31.0 1.33 9.0 -10.5 SERBADK 2.77 3.40 na 22.9 25.7 12.1 10.8 2.5 2.7 2.79 -0.7 1.51 83.4 84.7 UMWOG 0.32 0.48 1.70 -3.2 -0.9 na na 0.0 0.0 0.92 -65.9 0.27 16.7 -63.1 -8.8 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.55 1.55 1.32 FGV 1.87 1.52 1.79 IJMPLNT 2.88 3.58 0.32 IOICORP 4.36 4.14 1.29 KFIMA 1.66 1.89 0.45 KLK 24.50 26.18 SIME 9.03 UMCCA 11.3 12.3 13.7 12.6 0.0 0.0 1.98 -21.7 1.28 21.1 1.0 2.5 189.1 73.4 2.7 2.7 2.18 -14.2 1.42 31.7 20.6 12.3 14.1 23.4 20.5 2.4 2.8 3.60 -20.0 2.83 1.8 -15.3 17.3 21.0 25.1 20.7 2.2 3.7 4.81 -9.4 4.31 1.2 -0.9 19.9 13.3 8.3 12.5 5.4 5.4 1.96 -15.3 1.65 0.6 -2.4 0.78 103.4 120.4 23.7 20.3 2.1 2.4 25.50 -3.9 23.00 6.5 2.1 9.80 1.51 34.2 37.3 26.4 24.2 2.5 2.5 9.70 -6.9 7.87 14.7 11.5 7.03 7.52 0.40 37.5 31.8 18.7 22.1 3.3 2.4 7.08 -0.7 5.54 26.8 17.7 GLOMAC 0.64 0.60 0.53 1.4 5.0 43.9 12.6 4.3 4.3 0.77 -17.5 0.61 4.1 -8.6 HUAYANG 0.70 0.69 0.65 17.3 1.8 4.1 38.2 5.7 0.7 1.21 -42.1 0.70 0.0 -38.1 IBRACO 0.87 0.94 na 3.3 10.5 26.7 8.3 2.3 4.6 1.05 -17.1 0.76 15.2 -13.0 IOIPG 1.99 2.23 0.81 18.9 16.9 10.5 11.8 3.0 3.0 2.28 -12.5 1.85 7.7 2.1 MAHSING 1.55 1.76 1.00 14.3 13.5 10.8 11.5 4.2 4.2 1.64 -5.5 1.34 15.7 8.4 SNTORIA 0.72 0.98 0.27 6.2 10.3 11.7 7.0 1.4 1.4 1.00 -28.0 0.69 4.3 -10.0 PLANTATIONS PROPERTY Note: SNTORIA proposed bonus issue of warrants & right issue of shares. For more details please refer to 25.09.17 report. SPB 4.81 5.97 0.66 25.6 22.8 13.4 15.0 2.5 2.5 5.19 -7.3 4.32 11.3 8.8 SPSETIA 3.42 4.10 0.91 11.6 12.7 14.4 13.1 4.1 4.1 4.50 -24.0 3.10 10.3 9.3 SUNWAY 1.67 1.83 0.73 15.8 15.2 12.5 13.0 3.0 3.0 1.96 -14.7 1.24 34.8 29.9 SUNREIT 1.69 1.87 0.75 9.2 10.0 18.3 16.8 5.4 5.9 1.81 -6.6 1.63 3.7 -1.7 CMMT 1.45 1.72 0.41 8.1 8.6 17.9 16.8 5.8 6.2 1.72 -15.7 1.40 3.6 -5.2 -26.3 REIT POWER & UTILITIES MALAKOF 1.01 1.22 0.61 6.8 6.9 14.8 14.7 6.9 6.9 1.51 -33.1 1.00 1.5 PETDAG 23.72 22.08 0.67 102.8 105.1 23.1 22.6 3.2 3.3 25.70 -7.7 21.00 13.0 -0.3 PETGAS 16.98 19.10 0.89 89.1 98.8 19.1 17.2 3.9 4.1 21.98 -22.7 16.64 2.0 -20.3 TENAGA 14.82 17.38 0.77 175.7 130.0 8.4 11.4 3.0 3.0 15.46 -4.1 13.00 14.0 6.6 YTLPOWR 1.28 1.40 0.68 8.2 11.2 15.6 11.4 3.9 3.9 1.50 -14.7 1.28 0.0 -12.4 TELECOMMUNICATIONS AXIATA 5.35 5.40 1.35 15.7 16.9 34.2 31.6 1.5 1.6 5.47 -2.2 4.11 30.2 13.3 DIGI 4.81 5.20 0.76 19.5 20.0 24.6 24.1 4.1 4.2 5.19 -7.3 4.63 3.9 -0.4 MAXIS 5.95 6.10 0.74 26.0 26.2 22.9 22.7 3.4 3.4 6.60 -9.8 5.48 8.6 -0.5 TM 6.01 7.20 0.63 22.6 23.2 26.6 25.9 3.4 3.5 6.69 -10.2 5.81 3.4 1.0 TECHNOLOGY Semiconductor & Electronics ELSOFT 2.54 3.00 0.56 11.3 14.1 22.5 18.0 3.1 3.9 2.95 -13.9 1.29 97.6 80.9 IRIS 0.16 0.25 1.84 -1.3 0.6 na 28.9 0.0 0.0 0.22 -27.3 0.10 60.0 45.5 INARI 2.83 2.75 0.80 11.3 13.0 25.1 21.8 3.5 3.2 2.95 -4.1 1.61 76.1 70.8 MPI 13.74 15.00 0.15 89.5 105.5 15.4 13.0 2.0 2.3 14.52 -5.4 7.20 90.8 85.4 UNISEM 3.82 3.85 0.77 23.5 27.1 16.2 14.1 3.1 3.1 4.25 -10.1 2.28 67.5 61.9 TRANSPORTATION Airlines AIRASIA 3.23 3.76 0.92 44.0 37.6 7.3 8.6 1.2 1.5 3.59 -10.0 2.16 49.5 41.0 AIRPORT 8.21 8.47 1.23 19.6 19.7 41.9 41.6 1.2 1.2 9.45 -13.1 5.91 38.9 35.5 Freight & Tankers PTRANS 0.31 0.44 na 2.1 2.3 14.8 13.4 2.0 2.2 0.38 -20.1 0.14 116.5 109.7 TNLOGIS 1.36 1.80 1.12 12.0 13.6 11.3 10.0 3.1 3.7 1.83 -25.8 1.35 0.7 -12.8 WPRTS 3.66 4.06 0.87 17.1 16.8 21.3 21.8 3.5 3.4 4.39 -16.6 3.58 2.2 -14.9 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) Beta EPS (cent) FY17 FY18 PER (X) FY17 FY18 Div Yield (%) FY17 52week 52week % Chg FY18 High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 23.76 23.30 1.25 172.7 189.1 13.8 12.6 2.5 2.5 -2.2 16.1 48.04 37.0 0.0 OCBC 11.69 13.50 1.20 95.5 104.0 12.2 11.2 5.7 6.7 -2.4 8.6 8.84 31.1 0.0 UOB 25.07 26.90 1.08 200.8 215.5 12.5 11.6 2.8 2.8 -1.6 18.8 33.35 22.9 0.0 PLANTATIONS WILMAR 3.19 3.63 0.84 28.9 31.1 11.0 10.3 2.5 2.8 -20.3 3.1 3.57 -11.1 0.0 IFAR 0.45 0.53 1.01 4.9 5.2 9.3 8.7 2.6 2.8 -24.4 0.4 3.45 -14.3 0.0 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
13. COMPANY UPDATE Wednesday , November 15, 2017 FBMKLCI: 1,733.61 Sector: Consumer THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Aeon Co. (M) Bhd TP: RM2.23 (+11.6%) Last Traded: RM2.00 Expects Double Digit Sales Growth in FY18 Damia Othman Tel: +603-2167-9602 HOLD damia@ta.com.my Aeon’s 3Q17 financial results are expected to be released on 23 November 2017. We expect 9M17 earnings to come in the range of RM60.0mn and RM69.0mn, representing 30.9-49.2% growth YoY. This is attributable to i) sales contribution from nationwide sale, ii) maiden contributions from Aeon Kempas and iii) after effect of merchandise mix re-alignment. Expansion Progress Aeon has a CAPEX budget of RM500mn planned for FY17. So far, the group has utilised about 60% of the allocated CAPEX and is expected to spend another RM150mn in 4Q17. The utilised CAPEX has been used to i) expand Taman Maluri mall, ii) open a new mall in Kempas Johor and iii) refurbish old stores. The balance of RM150mn is expected to be used for i) continue financing the extension of Taman Maluri mall and ii) opening of new mall in Kuching, Sarawak. In the case of Aeon Taman Maluri mall, the group plans to turn the open space car park (c.100,000 sq.ft.) into part of the mall building (c.900,00 sq.ft.). The completion is targeted by 2H19. Currently the progress has reached 10% completion. We are positive on the outlook for this mall and have already considered its extension impacts in our earnings model. Figure 1: Aeon Taman Maluri Cheras Aerial View Expansion Area www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) Par Value 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) Aeon Co Aberdeen EPF Aeon MK 6599 Main Market 1,404.0 2,808.0 0.5 2.81/1.95 650.5 32.1 0.5 51.7 19.1 7.6 Forecast Revision (%) FY17 0.0 91.5 101.7 89.9 Hold (Maintained) FY18 0.0 105.6 118.7 89.0 Net debt/equity (%) ROE (%) ROA (%) NTA/Share (RM) Price/ NTA (x) FY17 47.8 4.7 2.0 1.4 1.5 FY18 51.9 5.4 2.2 1.4 1.4 Share Performance Price Change (%) 1 mth 3 mth 6 mth 12 mth AEON 2.0 0.0 (14.9) (28.6) FBMKLCI (1.2) (2.2) (2.5) 6.3 Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating Financial Indicators (12-Mth) Share Price relative to the FBMKLCI Source: Google Maps, TA Securities Recently on 7th Sep 2017, Aeon opened a new mall in Bandar Dato Onn, Kempas, Johor. Currently the mall has about 85% occupancy rate and is expected to be fully occupied by end of the year. Main advantages of the mall Source: Bloomberg Page 1 of 4
14. 15-Nov-17 include i ) good location which is 15 – 20 minutes from Tebrau City, ii) opening of an MBO cinema, which will help to increase consumers traffic into the mall and iii) less mall competition within the surrounding area. 3Q17 Expectations Considering that 3Q17 has no major festivities season, earnings for this quarter are expected to come from i) nationwide sales held in August, ii) maiden contribution from Aeon Kempas and iii) higher margins earned from realignment of merchandising mix which products are currently in trend with consumers (i.e. trendy food items from Japan). Therefore, we expect the adjusted net profit in 9MFY17 to come in the range between RM60.0mn and RM69.0mn, representing 30.9-49.2% growth YoY. Expects Higher Disposable Income in 2018 We are positive on Budget 2018 as it is expected to spur consumer’s purchasing power. 2018 Budget measures include i) middle-income tax payers are expected to have an extra RM300 – RM1,000 of disposable income from tax-cuts implementation, ii) the continuation of BR1M and iii) increase in bonus for the civil servants as well as the pensioners. Based on the total BRIM allocation of RM6.8bn (vs. RM6.6bn in 2017), allocation for civil servants and pensioners’ bonus of RM2.4bn (vs. RM800mn in 2017) and RM1.5bn tax reductions, these would increase consumer spending power, which will bode well for Aeon. Furthermore, the government i) expects 28mn tourist arrivals in 2018, ii) announced that 2020 will be the Visit Malaysia Year and iii) allocated RM3.5bn for the tourism sector in 2018 which we believe will also be positive for Aeon. Hence, we expect top-line growth of 10.8% YoY for FY18 after taking the above into consideration. For comparison purpose, Aeon’s 3-year average sales growth between FY14 – FY16 was only 4.7%. Figure 2: Expects FY18 Sales Growth to be 10.8% YoY 5,000.0 10.8% 12.0% 4,500.0 10.0% 4,000.0 3,500.0 7.9% 8.0% RMmn 3,000.0 5.4% 2,500.0 2,000.0 5.3% 5.3% 6.0% 3.5% 4.0% 1,500.0 1,000.0 500.0 2.0% 3,514.4 3,705.5 3,834.6 4,038.7 4,251.4 4,711.6 FY13 FY14 FY15 FY16 FY17E FY18F - 0.0% Revenue Sales Growth Source: Company, TA Securities Future Plans Moving forward, Aeon has allocated less CAPEX in FY17 – FY19 of RM500m for each financial year (versus average RM700mn each for FY15-16). The CAPEX in FY18 and FY19 will be used to i) finance the opening of mall in Kuching by FY18, ii) re-open Taman Maluri mall extension in FY19, iii) construction of Aeon Nilai and iv) stores refurbishments in Bandar Utama, Bandar Sunway as well as Seremban 2. We find that the above future plans are in line with its plan to normalize CAPEX level from RM700mn in FY15 and FY16 to RM500mn in FY17 – FY19. This would reduce the net gearing from 0.52x in FY16 to an estimated 0.48x in FY17. Note that 1HFY17 net gearing level was 0.46x. Page 2 of 4
15. 15-Nov-17 Figure 3 : CAPEX Level Normalizing 32 800.0 709.5 697.7 711.3 700.0 30 600.0 500.0 500.0 450.0 500.0 26 400.0 29 24 29 30 30 300.0 200.0 26 22 RMmn 522.4 28 24 100.0 22 20 FY13 FY14 FY15 FY16 Number of Malls - LHS FY17E FY18F FY19F CAPEX - RHS Source: Company, TA Securities Penang Floods To recap, early in the month Penang was hit by a massive flood, which caused over 2,000 people to evacuate their homes. We find Aeon Bukit Mertajam and Aeon Queensbay Mall are not affected by the flood. According to management, loading and unloading bays are clear and customers' traffic are normal. Therefore, we are neutral on the impact of the recent Penang flood on Aeon. Impact No change in earnings forecasts. Valuation Maintain HOLD on Aeon with unchanged target price of RM2.23/share based on DDM valuation (k: 6.5%, g: 3.0%). Reasons for our call includes; i) improving earnings margin due to management efforts in re-aligning merchandising mix, ii) higher consumer disposable income expected in FY18 to support Aeon’s topline growth and iii) competitive market environment within the Retail subsector. Page 3 of 4
16. 15-Nov-17 Earnings Summary INCOME STATEMENT FYE December 31 (RMmn) BALANCE SHEET FY15 FY16 FY17E FY18F FY19F FYE December 31 (RMmn) Revenue 3,834.6 4,038.7 4,251.4 4,711.6 4,942.9 PPE Gross profit Intangible assets FY15 FY16 FY17E FY18F FY19F 3,032.1 3,460.5 3,616.3 3,808.9 3,985.2 18.4 20.6 20.6 20.6 20.6 7.1 8.0 8.0 8.0 8.0 53.1 61.6 61.6 61.6 61.6 3,110.6 3,550.7 3,706.6 3,899.2 4,075.4 1,535.2 1,649.4 1,729.1 1,907.3 2,000.9 EBIT 227.0 181.2 249.1 246.6 277.6 Associate EBITDA 443.9 448.8 543.2 554.0 601.3 Others Reported PBT 210.8 147.1 212.9 207.3 236.2 Total Non-current assets Reported net profit 131.7 75.0 108.5 105.6 120.4 129.9 70.2 91.5 105.6 120.4 Inventories 577.5 614.7 640.6 710.0 744.8 37.5 49.0 49.0 49.0 49.0 Receivables 70.9 67.3 58.2 64.5 67.7 Core net profit Effective tax rate (%) Core EPS (sen) 9.3 5.0 6.5 7.5 8.6 Cash 213.9 96.0 17.7 64.9 2.2 GDPS (sen) 4.0 3.0 4.1 4.8 5.5 Total Current assets 931.7 867.0 805.6 928.4 903.8 Total Assets 4,042.3 4,417.7 4,512.1 4,827.6 4,979.2 FY15 FY16 FY17E FY18F FY19F 210.8 147.1 212.9 207.3 236.2 Payables 1,400.0 1,537.9 1,630.7 1,807.2 1,895.9 690.7 640.3 605.3 675.3 689.3 2,090.7 2,178.2 2,236.0 2,482.5 2,585.2 346.1 CASH FLOW STATEMENT FYE December 31 (RMmn) PBT Adjustments for: Borrowings D&A 216.9 267.5 294.1 307.4 323.8 Total Current liabilities Interest income (2.0) (2.0) (0.4) (1.3) (0.0) Interest expense 18.5 37.0 36.6 40.6 41.4 Borrowings 79.2 325.1 310.1 340.1 Others 210.5 153.6 125.1 207.3 236.2 Others 27.9 36.0 36.0 36.0 36.0 Op profit before working capital 443.9 456.1 455.5 554.0 601.4 Total Non Current liabilities 107.1 361.0 346.0 376.0 382.0 (58.7) (37.2) (25.9) (69.3) (34.8) Retained profits Change in WC; Inventories Receivables Share capital 2.8 (6.4) Payables Tax (6.3) 702.0 702.0 702.0 702.0 702.0 1,131.6 1,162.8 1,214.4 1,253.3 1,296.3 3.6 9.0 (3.2) Minority Interest 10.9 13.7 13.7 13.7 13.7 138.0 92.8 176.5 88.7 Total Equity 1,844.5 1,878.5 1,930.1 1,969.0 2,012.0 (115.8) Total Equity & Liabilities 4,042.3 4,417.7 4,512.1 4,827.5 4,979.2 (108.4) (72.1) (104.4) (101.7) Others 467.5 433.3 - - - CFO 296.9 465.5 427.0 553.2 536.2 Acquisition & capex (709.5) (711.3) (450.0) (500.0) (500.0) 17.8 87.8 - - (500.0) (500.0) RATIOS Others 4.9 CFI (704.6) (693.6) (362.2) FYE December 31 (RMmn) FY15 FY16 FY17E FY18F FY19F PER (x) 21.6 40.0 30.7 26.6 23.3 P/NTA (x) 1.5 1.5 1.5 1.4 1.4 Dividend yield (%) 2.0 1.5 2.0 2.4 2.8 Net borrowing 633.5 195.5 (50.0) 100.0 20.0 ROE (%) 7.0 3.7 4.7 5.4 6.0 Interest paid (18.5) (36.6) (36.2) (39.3) (41.4) ROA (%) 3.2 1.6 2.0 2.2 2.4 Dividend (70.2) (56.2) (56.9) (66.7) (77.4) EBIT margin (%) 5.9 4.5 5.9 5.2 5.6 Net margin (%) 3.4 1.7 2.2 2.2 2.4 Sales Growth (%) 3.5 5.3 5.3 10.8 4.9 EBIT Growth (%) (21.0) (20.2) 37.4 (1.0) 12.6 Net profit Growth (%) (38.4) (46.0) 30.3 15.5 14.0 Others - 7.5 CFF 544.8 110.3 Net change in cash 137.1 (117.8) (143.1) (78.3) - - (6.0) (98.8) 47.2 (62.6) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Wednesday, November 15, 2017, the analyst, Damia Othman, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
17. Wednesday , 15 November, 2017 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s P ic ks 2. D ai l y St o ck S cr een Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
18. Technical View Wednesday , November 15, 2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,733.61 (-3.88, -0.22%) Chartist: Stephen Soo Close Name FBMKLCI 14/11/2017 1733.61 Change (3.88) Tel: +603-2167-9607 High Low 1,744.61 1,733.31 Bollinger Bands Lower Mid RSI Upper 1,734.23 1,743.69 1,753.15 14d stsoo@ta.com.my Moving Averages 10d 38.78 1,743.78 www.taonline.com.my DMI 30d 50d 1,748.83 1,758.96 DI + DI - ADX 13.00 21.11 22.96 MACD DMI MACD DMI MACD Diff Line Signal Diff Recent Signal Signal Change (8.11) (4.23) (4.85) 0.621 SELL BUY - - AFFIN 2.48 0.00 2.49 2.47 2.48 2.55 2.62 32.85 2.52 2.56 2.57 9.17 25.37 23.41 -16.19 -0.02 -0.01 (0.007) SELL SELL - - ABMB 3.68 -0.01 3.70 3.68 3.62 3.74 3.86 41.04 3.71 3.78 3.81 19.49 21.17 16.81 -1.68 -0.04 -0.04 (0.002) SELL SELL - - AMBANK 4.35 0.00 4.37 4.35 4.22 4.36 4.50 47.66 4.32 4.39 4.39 13.50 19.64 21.77 -6.14 -0.03 -0.04 0.007 SELL BUY - - AXIATA 5.35 0.01 5.38 5.33 5.11 5.32 5.53 53.88 5.41 5.31 5.22 19.37 18.98 29.50 0.39 0.06 0.06 (0.007) BUY SELL - - CIMB 6.09 -0.04 6.18 6.05 6.05 6.16 6.27 40.24 6.18 6.22 6.38 18.29 22.78 21.21 -4.49 -0.05 -0.06 0.017 SELL BUY SELL - DIGI 4.81 -0.02 4.84 4.80 4.77 4.90 5.02 41.68 4.92 4.90 4.89 13.48 26.93 16.60 -13.45 0.00 0.01 (0.012) SELL SELL - - GAMUDA 4.79 0.00 4.82 4.77 4.74 5.06 5.38 24.71 4.97 5.13 5.22 7.46 42.21 47.96 -34.75 -0.12 -0.08 (0.035) SELL SELL - - GENTING 9.08 -0.27 9.37 9.05 8.86 9.28 9.70 50.42 9.17 9.37 9.53 17.52 17.32 24.31 0.20 -0.07 -0.11 0.043 BUY BUY - - GENM 4.94 -0.11 5.07 4.92 4.89 5.12 5.35 42.24 5.08 5.20 5.40 18.10 24.03 31.16 -5.93 -0.09 -0.11 0.021 SELL BUY - - IHH 5.70 0.07 5.70 5.60 5.52 5.69 5.85 43.04 5.63 5.71 5.78 12.67 22.64 26.85 -9.97 -0.04 -0.05 0.004 SELL BUY - - IOICORP 4.36 -0.06 4.42 4.31 4.41 4.49 4.56 42.08 4.49 4.50 4.53 15.25 13.08 19.14 2.18 -0.01 -0.01 (0.003) BUY SELL - SELL MALAKOFF 1.01 0.00 1.03 1.01 0.99 1.01 1.03 46.35 1.01 1.02 1.04 15.77 9.68 18.17 6.09 0.00 0.00 0.000 BUY BUY - - MAXIS 5.95 0.00 5.99 5.87 5.68 5.89 6.11 57.29 5.99 5.88 5.84 18.12 17.89 13.49 0.23 0.05 0.05 0.004 BUY BUY - - MAYBANK 9.34 0.18 9.48 9.18 9.10 9.25 9.41 28.79 9.21 9.35 9.48 21.11 25.45 42.96 -4.33 -0.09 -0.09 0.003 SELL BUY - - MBSB 1.13 0.00 1.15 1.13 1.08 1.12 1.16 48.18 1.13 1.12 1.17 28.60 14.76 26.00 13.84 0.00 -0.01 0.007 BUY BUY - - RHBBANK 4.83 0.00 4.85 4.81 4.84 4.99 5.15 29.66 4.95 5.03 5.05 13.22 24.87 18.83 -11.65 -0.05 -0.03 (0.018) SELL SELL - - SIME 9.03 -0.03 9.07 9.01 8.99 9.10 9.20 44.92 9.08 9.09 9.09 20.84 18.28 10.06 2.56 -0.01 -0.01 (0.005) BUY SELL - - 14.82 0.00 14.90 14.80 14.08 14.66 15.24 60.56 14.90 14.52 14.50 26.28 12.01 37.18 14.27 0.14 0.13 0.009 BUY BUY - - 6.01 -0.11 6.08 5.94 6.03 6.16 6.28 43.00 6.18 6.19 6.27 17.06 14.35 21.19 2.71 -0.03 -0.04 0.005 BUY BUY - - TENAGA TM WPRTS 3.66 -0.09 3.76 3.65 3.66 3.73 3.80 51.25 3.72 3.75 3.78 21.64 18.23 9.84 3.40 -0.01 -0.01 0.002 BUY BUY BUY BUY AIRASIA 3.23 0.01 3.25 3.22 3.13 3.33 3.53 41.47 3.31 3.36 3.39 15.39 27.91 20.23 -12.52 -0.04 -0.03 (0.012) SELL SELL - - AIRASIA X 0.38 -0.01 0.39 0.38 0.37 0.38 0.39 50.03 0.38 0.38 0.38 19.75 9.17 22.03 10.58 0.00 0.00 0.000 BUY BUY - - ARMADA 0.79 -0.01 0.80 0.78 0.68 0.74 0.81 73.17 0.77 0.74 0.74 32.82 10.80 33.41 4.73 0.02 0.01 0.006 BUY BUY - - BINAPURI 0.36 -0.01 0.37 0.35 0.35 0.37 0.39 49.33 0.37 0.36 0.36 28.72 23.99 14.61 -20.68 0.00 0.00 (0.001) SELL SELL - - CMSB 3.59 -0.03 3.62 3.57 3.60 3.74 3.88 30.47 3.69 3.80 3.89 23.74 -0.06 -0.06 (0.002) BUY SELL - SELL DIALOG 2.41 0.05 2.44 2.36 2.13 2.23 2.33 72.34 2.25 2.20 2.13 36.16 12.42 35.18 23.74 0.05 0.04 0.006 BUY BUY - - ECO WORLD 1.52 -0.01 1.53 1.50 1.51 1.54 1.56 43.54 1.55 1.54 1.55 15.95 27.02 16.67 -11.07 0.00 0.00 0.000 SELL BUY - - EKOVEST 0.99 -0.01 1.00 0.98 0.91 1.07 1.23 37.63 1.00 1.07 1.09 14.63 33.25 37.53 -18.62 -0.03 -0.02 (0.010) SELL SELL - - GADANG 1.19 -0.02 1.22 1.19 1.18 1.22 1.27 44.93 1.22 1.22 1.23 10.60 14.35 13.86 -3.75 -0.01 0.00 (0.003) SELL SELL - - HSL 1.50 -0.04 1.55 1.49 1.48 1.53 1.58 58.14 1.55 1.51 1.49 17.90 31.83 16.80 -13.93 0.02 0.02 (0.001) SELL SELL - - ISKANDAR 1.29 -0.01 1.31 1.28 1.25 1.34 1.44 45.29 1.33 1.32 1.31 19.55 20.00 23.43 -0.45 0.00 0.01 (0.009) SELL SELL SELL - KIMLUN 2.40 0.00 2.42 2.39 2.24 2.32 2.40 76.73 2.35 2.30 2.25 25.75 27.23 21.72 -1.49 0.04 0.03 0.006 SELL BUY - - KKBE 0.84 -0.01 0.85 0.84 0.81 0.84 0.86 45.80 0.85 0.86 0.87 21.37 33.90 31.49 -12.53 -0.01 -0.01 0.003 SELL BUY - - MUDAJAYA 1.09 0.02 1.10 1.08 1.07 1.19 1.32 33.55 1.14 1.19 1.14 19.57 35.34 24.93 -15.76 -0.02 0.00 (0.017) SELL SELL - - MRCB 1.05 0.00 1.06 1.04 0.87 1.01 1.14 57.20 1.06 0.98 0.99 31.80 18.46 27.65 13.34 0.03 0.02 0.004 BUY BUY - - NAIM 1.16 -0.01 1.17 1.15 1.14 1.18 1.23 43.84 1.17 1.20 1.20 28.12 21.38 17.55 6.74 -0.01 -0.01 (0.002) BUY SELL BUY - SAPURA ENERGY 1.45 -0.01 1.47 1.45 1.39 1.49 1.59 45.67 1.50 1.48 1.51 21.34 27.90 16.07 -6.56 -0.01 -0.01 (0.004) SELL SELL - - SUNCON 2.38 0.01 2.38 2.32 2.26 2.32 2.38 60.37 2.34 2.31 2.30 26.27 7.97 30.01 18.29 0.02 0.02 0.006 BUY BUY - - UEMS 1.08 0.01 1.08 1.07 1.07 1.10 1.12 36.65 1.09 1.10 1.13 13.67 17.93 12.90 -4.26 -0.01 -0.01 (0.001) SELL SELL - - WASEONG 1.08 -0.03 1.12 1.08 0.86 0.97 1.08 81.72 1.00 0.96 0.97 54.36 7.86 30.93 46.50 0.03 0.01 0.019 BUY BUY - - WCT 1.68 0.01 1.70 1.66 1.50 1.63 1.75 50.37 1.66 1.66 1.70 21.60 21.43 17.88 0.18 -0.01 -0.02 0.012 BUY BUY - - 8.03 28.72 39.71 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 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. Page 1 of 4
19. 15-Nov-17 Technical Comments : SELL DIGI & TM Bearish technical momentum on DiGi point to further downside bias towards the 50%FR (RM4.75), with better retracement support from the 38.2%FR (RM4.65) where buyers should cushion downside, while overhead resistance is from the 76.4%FR (RM4.98). Similar bearish momentum on TM suggests further downward correction potential for share price towards RM5.90 or re-test the 30/12/16 low (RM5.81) before base building again, while overhead resistance is from the 38.2%FR (RM6.22). DIGI RM4.81 (-0.02) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 5.02 4.89 4.76 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal Signal Change SELL Recent Signal Signal Change TM RM RM RM SIMPLE MOVING AVERAGES 6.27 6.14 6.02 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change SELL RM6.01 (-0.11) BOLLINGER BANDS Upper Middle Lower 4.90 4.90 4.89 RM RM RM DAILY MACD 6.15 6.18 6.27 BUY Page 2 of 4
20. Technical View Wednesday , November 15, 2017 FBMKLCI: 1,733.61 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia End Day Census of 14.11.2017 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 pguide 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 SUMATEC RESOURCE MALAYAN UTD INDS FRONTKEN CORP ABLEGROUP BHD UMW OIL & GAS CO GREEN PACKET BHD TADMAX RESOURCES DBE GURNEY RESOU JOHAN HLDGS BHD PA RESOURCES BHD MLABS SYSTEMS MIKRO MSC BHD HO WAH GENTING HIAP TECK VENTUR INARI AMERTRON B RAYA INTERNATION LAND & GENERAL CARIMIN PETROLEU ALAM MARITIM RES VIZIONE HOLDINGS TH HEAVY ENGINEE CAREPLUS GROUP PRINSIPTEK CORPO NOVA MSC BHD FAJAR BARU CONNECTCOUNTY MALAYSIA BUILDNG M-MODE BHD CME GROUP BHD HSS ENGINEERS BH Price 0.06 0.21 0.43 0.15 0.32 0.41 0.38 0.04 0.29 0.07 0.10 0.50 0.07 0.42 2.83 0.28 0.23 0.48 0.21 0.17 0.10 0.36 0.17 0.11 0.91 0.21 1.13 0.39 0.06 1.12 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.04 0.16 0.39 0.13 0.27 0.39 0.35 0.03 0.26 0.06 0.09 0.46 0.05 0.39 2.73 0.26 0.22 0.45 0.19 0.15 0.07 0.34 0.15 0.08 0.81 0.18 1.08 0.31 0.05 1.02 0.05 0.21 0.42 0.14 0.31 0.40 0.37 0.03 0.28 0.07 0.09 0.49 0.06 0.41 2.82 0.27 0.22 0.47 0.21 0.16 0.10 0.35 0.16 0.10 0.90 0.20 1.12 0.38 0.05 1.12 0.06 0.26 0.44 0.16 0.36 0.41 0.38 0.04 0.29 0.07 0.10 0.52 0.07 0.43 2.92 0.28 0.23 0.50 0.23 0.17 0.12 0.37 0.18 0.12 0.99 0.22 1.16 0.45 0.06 1.21 62.29 51.15 57.01 51.92 49.71 60.35 60.90 53.08 58.56 54.69 46.89 58.61 58.84 56.12 56.07 61.22 55.16 52.62 50.27 60.83 56.04 53.45 53.25 56.81 49.71 59.78 48.18 60.73 53.78 49.93 0.05 0.23 0.42 0.15 0.33 0.40 0.37 0.03 0.28 0.07 0.09 0.49 0.06 0.41 2.85 0.27 0.22 0.47 0.22 0.16 0.10 0.35 0.17 0.11 0.94 0.20 1.13 0.39 0.05 1.13 0.05 0.20 0.41 0.14 0.31 0.38 0.36 0.03 0.27 0.07 0.10 0.48 0.06 0.40 2.76 0.27 0.22 0.48 0.21 0.16 0.09 0.35 0.16 0.09 0.89 0.19 1.12 0.35 0.05 1.12 0.05 0.19 0.40 0.14 0.31 0.37 0.37 0.03 0.28 0.06 0.11 0.47 0.06 0.41 2.65 0.26 0.22 0.44 0.20 0.15 0.08 0.34 0.15 0.09 0.89 0.20 1.16 0.33 0.05 1.13 Vol 356,667,900 27,724,700 19,576,000 19,300,600 18,128,800 16,464,600 16,115,600 8,524,000 7,155,100 6,996,000 6,630,400 6,549,700 6,313,600 5,397,900 5,242,700 4,795,800 4,029,900 2,909,000 2,730,500 2,593,200 2,359,200 1,989,400 1,941,000 1,902,300 1,813,300 1,607,000 1,542,900 1,204,500 1,060,900 1,059,400 20-day avg vol 52,601,780 31,632,890 19,838,580 6,202,945 36,815,760 8,665,680 1,745,880 23,044,060 4,089,640 2,009,355 13,436,940 4,769,105 9,699,810 4,770,335 7,877,020 1,448,195 3,682,250 4,034,810 5,726,870 18,076,290 15,106,710 3,252,105 4,693,265 10,197,820 2,186,460 852,855 4,112,235 2,967,580 816,100 1,122,315 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2