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Bursa Malaysia Daily Market Report - 15 September

Mohd Noordin
By Mohd Noordin
4 years ago
Bursa Malaysia Daily Market Report - 15 September

Ard, Mal, Shariah , Sukuk , Wakalah, Commenda, Provision, Reserves, Sales


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  1. Friday , 15 September, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Astro Malaysia Holdings Berhad: Revenue Rebounds as Adex Outperforms Industry 2. Bina Puri Holdings Berhad: Secure Road Works Package 3. KPJ Healthcare Berhad: Fruition of Expansion Plans, the Key to Driving Growth 4. Sunway Construction Group Berhad: Secured PPA1M Job in Kelantan 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 Friday , 15 September 2017 (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 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (14.09.2017) Volume (mil) +/-chg (RMmn) Main Market 1,197.3 -576.8 1,681.2 Warrants 123.2 -11.5 16.4 ACE Market 564.5 -219.1 109.1 Bond 5.7 3.1 1.9 ETF 0.0 0.01 0.0 Total 1,890.7 1,808.7 Off Market 72.4 -0.5 175.3 Value +/-chg 9.5 -0.7 -49.2 1.5 0.01 -23.4 Major Indices Index +/- chg Malaysia FBMKLCI 1,781.37 FBMEMAS 12,687.29 FBMSCAP 17,014.59 September Futures 1,777.50 Other Markets DOW JONES 22,203.48 NASDAQ (US) 6,429.08 FTSE (UK) 7,295.39 NIKKEI (JAPAN) 19,807.44 KOSPI (KOREA) 2,377.66 HANG SENG (HK) 27,777.20 FSSTI (S'PORE) 3,220.95 SET (BANGKOK) 1,659.10 JCI (JAKARTA) 5,852.00 SHANGHAI 3,371.43 SHENZHEN 1,993.53 AUSTRALIA 5,738.68 (mn) 35.0 10.0 10.0 7.1 3.0 2.3 2.2 (RM) @ @ @ @ @ @ @ Review & Outlook Up Down 295 338 58 93 37 59 5 2 2 0 397 492 % chg % YTD chg -4.70 -21.16 -6.32 -5.00 -0.26 -0.17 -0.04 -0.28 8.51 10.65 15.62 8.68 45.30 -31.10 -84.31 -58.38 17.48 -116.88 -9.41 16.16 6.27 -12.72 -1.45 -5.58 0.20 -0.48 -1.14 -0.29 0.74 -0.42 -0.29 0.98 0.11 -0.38 -0.07 -0.10 12.35 19.43 2.14 3.63 17.33 26.26 11.81 7.53 10.48 8.63 1.24 1.29 Top 10 KLCI Movers Based on Mkt Cap. Off Market FPGROUP CIMB TIGER MINETEC DRBHCOM TOMYPAK KAWAN Value/ Volume 1.40 0.13 0.19 0.34 1.33 0.96 2.42 0.80 6.75 6.00 0.15 1.60 0.87 3.10 Exchange Rate USD/MYR 4.2049 0.0144 USD/JPY 110.42 0.4700 EUR/USD 1.190 -0.0085 Counter PCHEM AXIATA MAXIS DIGI GENTING PETGAS GENM IOICORP KLK TM Mkt Cap. (RM’mn) 59,200 45,801 45,223 37,864 37,121 36,804 32,197 28,529 26,305 23,863 Chg (RM) -0.05 -0.01 -0.01 -0.04 -0.20 -0.06 -0.07 -0.10 -0.12 -0.06 Vol. (mn) 6.44 7.49 1.10 1.86 3.51 0.23 8.69 6.42 0.22 1.46 Commodities Futures Palm Oil (RM/mt) 2,840.00 -7.00 Crude Oil ($/Barrel) 49.72 0.40 Gold ($/tr.oz.) 1,329.60 6.20 Important Dates PTRANS - 1:10 Bonus Issue - BI of up to 114.3m shares. 1 bonus share for every 10 existing shares. PTRANS - 1:2 Bonus Issue - BI of up to 571.5m warrants. 1 warrant for every 2 existing shares. LISTING ON: 15/09/2017. Stocks extended profit-taking for a second day Thursday, as weaker-thanexpected economic numbers from China raised concerns the world's second largest economy is gradually slowing. The KLCI fell 4.7 points to close at 1,781.37, off an early high of 1,788.47 and low of 1,780.79, as losers beat gainers 492 to 397 on much slower turnover of 1.89bn shares worth RM1.81bn. Given the absence of any significant positive market leads locally and weak follow-through buying momentum, profit-taking interest should persist ahead of the weekend. Expect formidable resistance from the 16 June peak of 1,796, with tougher hurdles from 1,800, 1,815 and subsequently 1,823, the May 2015 peak. Immediate uptrend support is at 1,778 and 1,775, the respective rising 10 and 30-day moving averages, with better support at 1,769, the 50-day moving average. Bullish momentum indicators imply good rebound potential for AMMB shares towards the 38.2%FR (RM4.58), with a confirmed breakout to aim for the 50%FR (RM4.80) and 61.8%FR (RM5.01) ahead, while key retracement support is from the 23.6%FR (RM4.32). Likewise, RHBBank should recover towards the 76.4%FR (RM5.18), with a convincing breakout to target RM5.39 and the 3/5/17 peak (RM5.59) prior to profittaking pause, while immediate retracement support is from the 61.8%FR (RM4.92). News Bites • Astro Malaysia Holdings Berhad reported a 1HFY18 core net profit of RM432mn (+32.4% QoQ, +33.0% YoY). It was within expectations. • Eco World Development Group Bhd recorded a 76% YoY jump in net profit for 9MFY17 to RM175.9mn, thanks largely to a gain from the dilution of interest in then wholly-owned Paragon Pinnacle Sdn Bhd in the first quarter of the year. • Eco World International Bhd recorded a net loss of RM55.1mn for 9MFY17, which is 66.6% lower than RM165mn in the prior year. • Sunway Construction Group Bhd has bagged a construction contract worth RM581.7mn for the construction of PPA1M apartments in Kelantan. The project is for about 30 months, to be completed by 1Q20. • TRC Synergy Bhd, via Konsortium Kontraktor Melayu Sdn Bhd-TRC joint-venture, has secured a new contract worth RM348.3mn for the MRT Line 2. • Bina Puri's 51%-owned indirect subsidiary has accepted an award worth RM35.5mn from Aktif Unggul Sdn Bhd to undertake the pavement works and temporary road diversion. • Tenaga Nasional Bhd´s unit, Southern Power Generation Sdn Bhd, has proposed to issue sukuk of up to RM4.0bn in nominal value based on the Shariah principle of Wakalah Bi Al-Istithmar. • Magna Prima Bhd has launched a RM271mn condominium development dubbed The View Residences in Sultan Abdul Aziz Shah Golf Club, Shah Alam. • Pestech International Bhd has inked a MoU with Universiti Tunku Abdul Rahman to explore areas of cooperation for research opportunities and to facilitate industrial study visits and industrial placements for students. • Straits Inter Logistics Bhd's unit, Selatan Bunker (M) Sdn Bhd, has secured a RM45mn oil bunkering contract from Tumpuan Megah Development Sdn Bhd. • AWC Bhd has been awarded a subcontract worth RM32.6mn for the provision of plumbing works for the 8 Conlay project developed by Damai City Sdn Bhd. • CB Industrial Product Holding Bhd has secured a palm oil mill-related contract worth RM8.8mn from Sime Darby Plantation Bhd. • China's factory output grew 6.0% in August from a year earlier, while fixed-asset investment expanded 7.8% in the first eight months, both well below economists' forecasts, data showed. • The Bank of England signalled that officials are preparing to raise interest rates within months to restrain accelerating inflation. 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. Technical Comments : Buy Dips AMMB & RHBBank Bullish momentum indicators imply good rebound potential for AMMB shares towards the 38.2%FR (RM4.58), with a confirmed breakout to aim for the 50%FR (RM4.80) and 61.8%FR (RM5.01) ahead, while key retracement support is from the 23.6%FR (RM4.32). Likewise, RHBBank should recover towards the 76.4%FR (RM5.18), with a convincing breakout to target RM5.39 and the 3/5/17 peak (RM5.59) prior to profit-taking pause, while immediate retracement support is from the 61.8%FR (RM4.92). AMMB Upper Middle RM4.50 (+0.15) BOLLINGER BANDS RM RM 4.78 4.46 10-day 30-day RM 4.14 50-day Lower DMI Recent Signal BUY Recent Signal BUY Signal Change RHBBANK Recent Signal Signal Change BOLLINGER BANDS RM RM RM DMI RM 4.77 DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 4.32 RM 4.60 BUY RM5.07 (UNCH) 5.17 5.00 4.84 BUY SIMPLE MOVING AVERAGES RM 5.05 RM 4.98 RM 5.01 DAILY MACD Recent Signal BUY Signal Change 10-day 30-day 50-day Page 2 of 2
  4. TA Securities Friday , September 15, 2017 FBMKLCI: 1,781.37 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 Profit-Taking to Persist Ahead of Weekend Stocks extended profit-taking for a second day Thursday, as weaker-than-expected economic numbers from China raised concerns the world’s second largest economy is gradually slowing. The KLCI fell 4.7 points to close at 1,781.37, off an early high of 1,788.47 and low of 1,780.79, as losers beat gainers 492 to 397 on much slower turnover of 1.89bn shares worth RM1.81bn. Formidable Resistance at 1,796, Support at 1,778 Given the absence of any significant positive market leads locally and weak follow-through buying momentum, profit-taking interest should persist ahead of the weekend. Expect formidable resistance from the 16 June peak of 1,796, with tougher hurdles from 1,800, 1,815 and subsequently 1,823, the May 2015 peak. Immediate uptrend support is at 1,778 and 1,775, the respective rising 10 and 30-day moving averages, with better support at 1,769, the 50-day moving average. Buy Dips AMMB & RHBBank Bullish momentum indicators imply good rebound potential for AMMB shares towards the 38.2%FR (RM4.58), with a confirmed breakout to aim for the 50%FR (RM4.80) and 61.8%FR (RM5.01) ahead, while key retracement support is from the 23.6%FR (RM4.32). Likewise, RHBBank should recover towards the 76.4%FR (RM5.18), with a convincing breakout to target RM5.39 and the 3/5/17 peak (RM5.59) prior to profit-taking pause, while immediate retracement support is from the 61.8%FR (RM4.92). Asian Markets Pare Gains on Soft China Data Tepid economic data from China sent key Asian stock indexes lower on Thursday, reversing early gains as investors took profit from the strong rebound at the start of the week. China’s fixed-asset investment, factory output and retail sales all grew less than expected, reinforcing views that the world’s second-largest economy is gradually beginning to lose steam in the face of rising borrowing costs. That took some of the shine off China’s surprisingly robust growth in the first half of the year, which has helped fuel stronger global demand, particularly for commodities, but analysts do not see a risk of a sharp slowdown in its economic momentum. Japanese stocks edged lower in choppy trade on Thursday and snapped a three-day winning streak, as weak Chinese economic data offset early gains when the broader Topix index hit the highest level in more than two years. The Nikkei share average fell 0.3 percent to 19,807.44, while the broader Topix also dropped 0.3 percent to 1,632.13. In down under, the S&P/ASX 200 slipped 0.13 percent, with the materials sub-index falling 1.11 percent and leading losses. Meanwhile, Shanghai stocks also fell on Thursday, snapping a brief foray into 20-month highs, after data showed the world’s second-largest economy may be starting to lose some steam as lending costs rise. The blue-chip CSI300 index fell 0.3 percent, to 3,829.96 points, while the Shanghai Composite Index lost 0.4 percent to 3,371.43 points. Page 1 of 8
  5. TA Securities 15-Sep-17 A Member of the TA Group Dow Strikes Record High but Broader Market Weaken on Inflation Fears Rising shares of Boeing pulled the Dow Jones Industrial Average up to a record high on Thursday , while the S&P 500 fell as investors saw higher-than-expected inflation increasing the chances of an interest rate hike. United Technologies and Boeing were among the biggest contributors to the Dow industrials’ climb, adding roughly 42 points to the index. However, the S&P 500 and Nasdaq moved lower after a Labor Department report showed consumer prices rose more than expected in August, boosting the odds of another interest rate hike this year. Investors closely watched the data looking for clues about the future of the Fed's monetary policy. Market expectations for a Fed rate hike in December increased to 52.9 percent from 41.3 percent after the data were released, according to the CME Group's Fed Watch tool. The Dow Jones Industrial Average rose 45.30 points, or 0.20 percent, to 22,203.48, while the S&P 500 lost 2.75 points, or 0.11 percent, to 2,495.62, and the Nasdaq Composite fell 31.10 points, or 0.48 percent, to 6,429.08. Page 2 of 8
  6. TA Securities 15-Sep-17 A Member of the TA Group News In Brief Corporate Astro Malaysia Holdings Bhd 's pre-tax profit increased to RM608.7mn for 1HFY18 from RM449.0mn in the corresponding period in 2016. Revenue for 1HFY18 increased to RM2.7bn from RM2.8bn previously. ARPU in H1FY18 rose to RM100.8, driven by take-up of value-added products and services. (Bursa Malaysia/ Bernama) Eco World Development Group Bhd recorded a 76% YoY jump in net profit for 9MFY17, to RM175.9mn from RM99.9mn, thanks largely to a gain from the dilution of interest in then wholly-owned Paragon Pinnacle Sdn Bhd in the first quarter of the year. Topline for the period also came in 12% higher at RM2.0bn compared with RM1.8bn a year ago. (Bursa Malaysia/ The Edge) Eco World International Bhd recorded a net loss of RM55.1mn for 9MFY17, which is 66.6% lower than RM165mn in the prior year. Revenue slipped 7.8% to RM461k in 9MFY17 from RM500k a year ago. The group said for the remaining 2 months in FY17, it would work towards achieving its sales target of RM2.5bn. Sunway Construction Group Bhd has bagged a construction contract worth RM581.7mn for the construction of PPA1M apartments in Kelantan. The project is for about 30 months, to be completed by 1Q20. (Bursa Malaysia/ The Edge) Magni-Tech Industries Bhd's net profit fell 17% to RM19.6mn in 1QFY18, from RM23.5mn a year ago, due to net forex loss recorded for the quarter. Revenue for the quarter, however, improved 12% YoY to RM293.7mn from RM271.4mn. (Bursa Malaysia/ The Edge) AirAsia Bhd has appointed BDO Unibank Inc, the Philippines’ largest bank by assets, to conduct preparatory work on the IPO of Philippines AirAsia, according to a source. It was reported that the proposed IPO is expected to raise as much as US$200mn. (The Edge) TRC Synergy Bhd, via Konsortium Kontraktor Melayu Sdn Bhd-TRC joint-venture, has secured a new contract worth RM348.3mn for the construction and completion of Serdang Maintenance Depot, external works and other associated works for MRT Line 2. (Bursa Malaysia/ New Straits Times) Tenaga Nasional Bhd´s unit, Southern Power Generation Sdn Bhd (SPG), has proposed to issue sukuk of up to RM4.0bn in nominal value based on the Shariah principle of Wakalah Bi Al-Istithmar. SPG was incorporated as the special purpose vehicle for the development of 2x720MW combined cycle gas turbine power plant in Pasir Gudang, Johor. (Bursa Malaysia/ The Edge) Magna Prima Bhd has launched a RM271mn condominium development dubbed The View Residences in Sultan Abdul Aziz Shah Golf Club, Shah Alam. Sitting on a 5.25-acre leasehold site, The View Residences is the only residential condominium in the golf course and the first project by the developer this year. It is targeted for completion in 2021. (The Edge) AbleGroup Bhd has received a conditional mandatory takeover offer from Parallel Pinnacle Sdn Bhd, the private vehicle of its managing director Datuk Lim Kim Huat, after the latter bought 28.3mn AbleGroup shares or a 10.7% stake in the company. Parallel offered to buy the remaining shares at 13 sen per share, a 1 sen or 7% discount to the stock's closing price of 14 sen on Sept 13. (Bursa Malaysia/ The Edge) Pestech International Bhd has inked a MoU with Universiti Tunku Abdul Rahman to explore areas of cooperation for research opportunities and to facilitate industrial study visits and industrial placements for students. (Bursa Malaysia/ The Edge) Page 3 of 8
  7. TA Securities 15-Sep-17 A Member of the TA Group Straits Inter Logistics Bhd 's unit, Selatan Bunker (M) Sdn Bhd, has secured a RM45mn oil bunkering contract from Tumpuan Megah Development Sdn Bhd. (Bursa Malaysia/ Bernama) Bina Puri Holdings Bhd will undertake road pavement and diversion works along the Federal Road's Sungai Buloh-Assam Jawa stretch in Selangor, under a RM35.5mn contract. The works under the contract are expected to be completed within 31 months from the commencement date on 16 December 2017. (Bursa Malaysia/ The Edge) AWC Bhd has been awarded a subcontract for the provision of plumbing works for the 8 Conlay project developed by Damai City Sdn Bhd. The subcontract, worth RM32.6mn, is expected to be completed in phases, from May 14, 2019, until May 31, 2021. (Bursa Malaysia/ The Edge) CB Industrial Product Holding Bhd has secured a palm oil mill-related contract from Sime Darby Plantation Bhd. The RM8.8mn contract entails replacing existing front-end vertical sterilizer with continuous sterilizer system at Sime Darby Plantation's palm oil mill in Layang Layang, Johor. (Bursa Malaysia/ The Edge) G3 Global Bhd, formerly known as Yen Global Bhd, announced that it has appointed its major shareholder, Puan Chan Cheong, as its new non-executive chairman. Puan is replacing Goh Kok Beng, who has been redesignated as executive director. Puan is the founder of Green Packet Bhd. (Bursa Malaysia/ The Edge) Palette Multimedia Bhd, which provides solutions in the areas of broadband, wireless and networking products and services, said it intends to change its name to UCrest Bhd. The use of the proposed name UCrest Bhd has been approved and reserved by the Companies Commission of Malaysia. (Bursa Malaysia/ The Edge) Page 4 of 8
  8. TA Securities 15-Sep-17 A Member of the TA Group News In Brief Economy Asia Call to Boost Bilateral Trade in Malaysia-Thailand Border Areas Malaysia and Thailand want to enhance bilateral trade ties , especially in the border areas and are studying several proposals to achieve the goal, said Second Finance Minister Datuk Seri Johari Abdul Ghani. One of the proposals, he said, involved further facilitating the movements of goods and containers from Songkla Port in southern Thailand to Penang Port. He told Bernama at the business forum that, Thailand’s government is excited about this proposal as the distance between the two ports is 260 km, or four hours of travel. Separately, Prime Minister Datuk Seri Najib Tun Razak and US President Donald J. Trump have pledged to nurture the economic ties between the two nations to create jobs and opportunities, as well as remove trade barriers in key sectors. The two countries also recognised the importance of regular discussions under the Trade and Investment Framework Agreement to strengthen the trade relationship by removing barriers in key sectors, said a joint statement for enhancing the comprehensive partnership between the US and Malaysia. The pledge reflects a longstanding and substantial trade relations, it said. (Bernama) China Aug Factory Output up 6%, Investment up 7.8%, Both Miss Forecasts China's factory output grew 6.0% in August from a year earlier, while fixed-asset investment expanded 7.8% in the first eight months, both well below economists' forecasts, data showed. Analysts polled by Reuters had predicted factory output would grow 6.6% in August, up from 6.4% in the previous month. Fixed-asset investment had been forecast to grow 8.2% over the first eight months of the year, which would have marked a slight moderation from 8.3 growth in January-July. Retail sales rose 10.1% in August from a year earlier, the statistics bureau said, cooling from July's 10.4% pace and below analysts' expectations for a 10.5% increase. Growth of private investment slowed to 6.4% in January-August from 6.9% in the first seven months of the year, suggesting small- and medium-sized private firms still face challenges in accessing financing. Private investment accounts for about 60% of overall investment in China. China is forecasting growth of around 9% in fixed asset investment for 2017, and expects retail sales to increase about 10%. The government is targeting annual economic growth of around 6.5% this year, down from the 6.7% pace clocked in 2016. Separately, China’s home sales last month grew at the slowest pace in almost three years amid regulatory moves to rein in prices. The value of new homes sold rose 3.8% to 807bn yuan ($123bn) in August from a year earlier, according to Bloomberg calculations based on data released by the National Bureau of Statistics. That compares with a 4.3% jump a month earlier, and is the slowest increase since November 2014. (The Star/Bloomberg) Australia Unemployment Rate Unchanged at 5.6% The unemployment rate in Australia held steady at a seasonally adjusted 5.6% in August, the Australian Bureau of Statistics said. That was in line with expectations and unchanged from the July reading. The Australian economy added 54,200 jobs to 12,269,000 in August, beating forecasts for an addition of 20,000 jobs following the addition of 27,900 jobs in the previous month. The participation rate ticked up to 65.3% - exceeding expectations for 65.1%, which would have been unchanged. Full-time employment increased 40,100 to 8,392,300 and part-time employment increased 14,100 to 3,876,700. Unemployment decreased 1,100 to 727,500. The number of unemployed persons looking for full-time work increased 6,400 to 501,600 and the number of unemployed persons only looking for parttime work decreased 7,500 to 225,900. Monthly hours worked in all jobs increased 6.1mn hours (0.4%) to 1,705.4mn hours. The labour force underemployment rate decreased 0.2 points to 8.6%. The underutilization rate fell 0.2 points to 14.1%. (RTT News) Page 5 of 8
  9. TA Securities 15-Sep-17 A Member of the TA Group Separately , the Reserve Bank of Australia (RBA) posted a loss of AUD900mn (S$971.7mn) in the year ended June, compared with a profit of AUD2.9bn in the previous year, reflecting losses on foreign assets as the local dollar surged. The RBA will pay a dividend of A$1.3bn to the Australian government as unrealised valuation losses were offset against previously retained gains, the RBA said in its annual report. (RTT News/The Business Times) Singapore Jobless Rate Holds Steady at 2.2% in June, Retrenchments Dip to 3,640 Singapore's overall unemployment rate held steady at 2.2% in the second quarter, according to latest figures from the Ministry of Manpower (MOM). Quarter on quarter, the seasonally adjusted unemployment rate declined for residents from 3.2% in March 2017 to 3.1% in June 2017, and for citizens from 3.5% to 3.3%. Total employment declined by 7,900 excluding foreign domestic workers, said the Labour Market Second Quarter 2017 report. This was less than the 8,400 originally estimated in the Labour Market Advance Release. The decline, due to sustained declines in Work Permit holders in construction and manufacturing, was lower than the decline of 9,400 in the first quarter. Some 3,640 workers were retrenched in the second quarter, slightly higher than 3,500 cited in preliminary estimates. (The Business Times) Asia Foreign Reserves Climb on Steady Capital Inflows Foreign exchange reserves are growing across the region, positioning Asia’s central banks to tackle any volatility triggered by the Federal Reserve’s plan to shrink its balance sheet. India’s are set to hit a new high of USD400 billion, enough to cover a year of imports, while holdings of international currencies in South Korea, Taiwan, Thailand and Indonesia are all at record levels. China’s reserves – the world’s biggest – posted a seventh straight gain in August to USD3.09 trillion, helping to reverse a near USD1 trillion decline. (Bloomberg) United States U.S. Consumer Prices Rose 0.4% in August U.S. consumer prices rebounded in August, a sign of economic health that could nudge the Federal Reserve closer to raising short-term interest rates. The consumer-price index, measuring what Americans pay for everything from medicine to home rent, grew 0.4% in August from a month earlier, the biggest jump since January, the Labour Department said. Much of the gain was due to a sharp rise in gasoline prices after Hurricane Harvey, which shut Texas refineries that will likely prove temporary. But prices for other items— particularly housing—also rose. Excluding food and energy, so-called core prices grew 0.2%, the most since February. Overall prices rose 1.9% in the 12 months through August, up from July’s rate of 1.7% but below January’s pace of 2.5%. Core prices climbed 1.7% in the year through August, where it has stayed through summer. Energy prices rose 2.8% in August from a month earlier, driven by higher gasoline prices. Food prices gained 0.1%. Shelter prices, a measure of rent and mortgage payments, increased 0.5% over the month. Meanwhile, Americans’ incomes dropped last month, the Labour Department said in a separate report. Average weekly earnings, after inflation, fell 0.6% from a month earlier. While hourly earnings rose, higher inflation more than offset the gain, and the average workweek fell. (The Wall Street Journal) U.S. Jobless Claims Fell Last Week The number of Americans applying for new unemployment benefits fell last week but remained sharply higher than two weeks earlier because of Hurricane Harvey’s effects. Initial jobless claims, a proxy for layoffs across the U.S., fell by 14,000 to a seasonally adjusted 284,000 in the week ended Sept. 9, the Labour Department reported Thursday. Economists surveyed by The Wall Street Journal had expected 305,000 new claims. This latest drop arrives after claims jumped to 298,000 in the week ended Sept. 2 from 236,000 a week earlier. Claims have remained at historically low levels for several years, a sign of underlying health in the job market. But the flooding and destruction in Texas, Louisiana and Florida as a result of Hurricanes Harvey and Irma could cause significant job losses, at least temporarily. Advance claims, not adjusted for seasonality, in both Texas and Louisiana, the two states the Labour Department noted as being affected by Hurricane Harvey, were both down from the previous the week. (The Wall Street Journal) Page 6 of 8
  10. TA Securities 15-Sep-17 A Member of the TA Group Europe and United Kingdom Bank of England Says Interest Rates Could Rise Within Months The Bank of England signalled that officials are preparing to raise interest rates within months to restrain accelerating inflation , a fresh sign that a decade long era of ultra-loose central-bank policy is slowly drawing to a close. The BOE’s step toward tighter monetary policy comes as the Federal Reserve is poised to start the process of reducing its USD4.5 trillion in securities holdings, while the European Central Bank is likely to announce plans next month for phasing out its bond-buying programme amid a buoyant euro-zone economy. If all three deliver, it will be the first time since before the financial crisis that they will have moved together to withdraw their stimulus measures. The BOE held its benchmark interest rate steady at 0.25% following its September policy meeting but the rate-setting Monetary Policy Committee said in a statement that a majority of officials on the nine-member panel believe borrowing costs will soon need to rise to bring annual inflation back to its 2% goal. Such a move, which would mark the first interest-rate increase in the U.K. in almost a decade, is likely “over the coming months,” the panel said, if the economy performs broadly in line with officials’ expectations. The U.K. central bank faces a unique challenge: Britain’s decision to exit from the European Union in June last year is having multiple effects on its economy that are complicating officials’ policy-setting task. Officials had believed the boost would soon fade, allowing them to hold borrowing costs low to support a slowing economy. But in recent months they have become increasingly concerned that subdued investment and feeble productivity growth is hurting the economy’s capacity to produce goods and services without causing inflation. BOE Gov. Mark Carney warned last month that this supply-side squeeze means interest rates may have to rise sooner than investors than expected. At the time, investors doubted the BOE would raise interest rates this year or next. Significantly, officials repeated that warning Thursday—even though market expectations for a rate increase have advanced to around the middle of 2018. (The Wall Street Journal) Page 7 of 8
  11. TA Securities 15-Sep-17 A Member of the TA Group Share Buy-Back : 14 September 2017 Company CYMAO DAIBOCI E&O FFHB GRANFLO HARNLEN PWF SUPERMX TROP Bought Back Price (RM) Hi/Lo (RM) 100,000 6,200 23,200 12,800 125,000 10,000 190,000 200,000 80,000 0.32 2.18/2.17 1.59/1.55 0.62/0.615 0.245/0.24 0.71 1.19/1.15 1.80 0.95 0.32 2.18/2.17 1.59/1.55 0.62/0.615 0.245/0.235 0.725/0.71 1.19/1.13 1.81/1.79 0.945/0.94 Total Treasury Shares 1,664,600 435,300 6,010,847 252,600 7,029,800 7,302,000 5,636,118 16,701,000 4,726,542 TA RESEARCH – Remisiers’ Briefing Topic: Weekly Market Outlook Speaker: Kaladher/ Stephen Soo Venue: Auditorium, 10th Floor Menara TA One Date: 18 September 2017 (Today) Time: 12.40pm 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 8 of 8
  12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR PECCA UMW Share Price (RM) 14-Sep-17 2.07 2.14 1.52 5.41 Target Price BETA (RM) EPS (sen) FY17 FY18 PER (X) FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.40 2.09 1.69 5.04 0.88 0.60 na 1.38 10.2 20.7 7.8 19.7 16.1 23.2 10.6 30.6 20.3 10.4 19.5 27.4 12.9 9.2 14.4 17.7 5.6 1.9 3.3 2.4 7.7 2.2 3.5 3.7 2.33 2.67 2.04 6.08 -11.2 -19.9 -25.5 -11.0 1.84 2.08 1.45 4.09 12.5 2.9 4.8 32.2 -2.8 0.0 -4.4 28.1 4.80 3.70 5.70 8.00 17.50 10.20 23.60 5.80 11.10 1.30 0.82 1.21 1.52 0.63 0.91 0.73 1.31 0.68 33.6 29.4 43.9 49.6 104.9 69.7 137.2 50.6 40.2 31.0 33.6 48.6 55.2 114.2 76.1 142.4 55.0 39.0 11.5 9.0 10.2 13.6 15.2 13.9 15.0 10.0 25.1 12.5 7.9 9.3 12.2 13.9 12.8 14.5 9.2 25.9 4.1 3.0 3.9 3.7 2.8 5.1 2.7 3.0 3.4 4.1 3.0 4.0 4.1 2.8 5.1 2.8 3.0 3.4 4.49 3.00 5.70 7.08 16.30 9.84 20.90 5.59 10.98 -13.8 -11.7 -21.1 -4.9 -2.5 -1.2 -1.5 -9.3 -8.0 3.60 2.08 3.90 4.49 12.70 7.50 19.40 4.53 8.08 7.5 27.4 15.4 49.9 25.2 29.6 6.1 11.9 25.0 4.0 10.9 4.4 49.2 17.8 18.5 4.4 7.6 15.8 0.37 1.27 5.37 3.34 0.60 0.96 2.30 1.80 5.98 0.38 1.75 6.00 3.50 0.78 0.58 2.26 1.49 6.26 0.62 0.35 0.99 0.97 0.85 1.25 na 0.85 0.23 4.7 15.3 27.8 15.3 4.9 8.3 12.7 11.5 41.9 4.6 14.3 34.5 20.2 5.7 9.6 12.5 11.6 45.7 7.9 8.3 19.3 21.9 12.0 11.6 18.2 15.6 14.3 8.1 8.9 15.5 16.5 10.4 10.0 18.3 15.6 13.1 0.0 2.4 2.2 2.2 4.2 1.0 2.4 1.7 4.2 0.0 2.4 2.2 2.8 4.2 1.0 2.4 1.7 4.2 0.51 1.37 5.52 3.61 0.74 1.39 2.41 2.48 6.15 -27.5 -7.3 -2.7 -7.5 -19.0 -30.9 -4.6 -27.3 -2.8 0.33 0.89 4.65 3.07 0.40 0.46 1.56 1.58 5.57 13.8 43.5 15.5 8.8 48.8 111.0 47.4 13.9 7.4 -14.9 21.0 12.3 4.4 -1.7 67.0 35.3 4.7 1.7 1.31 1.97 1.58 1.67 na 0.43 8.6 6.7 11.8 10.0 15.2 29.4 11.1 19.8 3.1 5.1 4.6 5.1 1.49 2.19 -12.1 -10.0 0.85 1.92 55.0 2.6 50.6 -2.0 15.02 18.98 18.06 19.14 0.50 0.50 79.3 79.6 86.2 84.0 19.0 23.8 17.4 22.6 5.3 3.8 5.7 4.0 15.30 19.58 -1.8 -3.1 13.72 15.56 9.5 22.0 7.9 15.9 2.06 7.43 24.80 1.20 84.98 4.48 1.89 3.98 0.90 2.23 8.62 27.41 1.50 92.76 4.67 2.46 4.32 1.23 0.58 0.31 0.21 0.38 0.38 0.60 0.61 0.38 0.39 6.5 30.6 121.1 6.5 292.7 23.5 27.4 15.7 8.5 7.5 38.7 150.9 6.6 325.4 27.0 27.4 16.7 11.6 31.6 24.2 20.5 18.4 29.0 19.1 6.9 25.4 10.6 27.4 19.2 16.4 18.1 26.1 16.6 6.9 23.9 7.8 2.0 4.4 2.8 5.0 3.2 2.6 3.2 1.1 2.8 2.3 4.7 3.0 5.0 3.3 2.8 4.2 1.1 3.9 3.00 8.59 26.00 1.28 85.80 4.65 2.06 4.02 1.07 -31.3 -13.5 -4.6 -6.2 -1.0 -3.7 -8.3 -1.0 -15.9 1.98 7.05 22.44 1.13 74.12 2.26 1.50 3.19 0.78 4.0 5.4 10.5 6.1 14.7 98.2 26.0 24.9 15.4 -19.8 1.4 5.6 4.3 8.7 76.4 9.2 19.5 13.2 43.62 52.08 1.08 198.6 187.4 22.0 23.3 4.6 4.6 51.04 -14.5 40.61 7.4 -1.2 9.73 5.68 11.51 6.53 1.42 1.48 45.6 21.0 54.4 27.1 21.3 27.0 17.9 20.9 1.4 1.4 1.6 1.6 10.00 6.38 -2.7 -11.0 7.50 4.31 29.8 31.7 22.5 25.7 2.31 0.14 3.34 0.15 0.88 1.54 19.3 0.4 23.2 0.4 12.0 37.2 10.0 37.5 6.1 0.0 6.9 0.0 3.42 0.16 -32.5 -15.6 2.25 0.05 2.7 170.0 -22.0 170.0 6.00 4.30 6.41 4.67 0.74 0.44 7.9 13.3 13.1 16.2 75.6 32.4 45.9 26.5 0.6 1.4 0.5 1.7 6.70 4.32 -10.4 -0.5 5.54 3.85 8.3 11.7 -5.5 2.9 6.49 6.77 1.81 5.45 1.52 6.87 7.60 1.80 6.05 1.60 0.49 0.16 0.32 -0.20 0.30 17.2 33.9 10.6 26.4 2.8 24.6 40.0 15.1 29.8 4.6 37.8 20.0 17.1 20.6 54.5 26.4 16.9 12.0 18.3 32.8 1.3 2.5 1.8 2.4 1.3 1.7 3.0 2.5 2.7 0.8 7.40 7.36 2.38 5.94 2.62 -12.3 -8.0 -23.9 -8.2 -42.0 4.30 5.62 1.77 4.56 1.37 50.9 20.5 2.3 19.5 10.9 34.4 2.7 -14.2 1.9 -35.6 INDUSTRIAL SCIENTX SKPRES 9.46 1.50 9.28 1.75 0.48 0.56 51.0 8.4 56.5 10.4 18.5 17.9 16.7 14.5 1.8 2.8 1.9 3.4 9.85 1.55 -4.0 -3.2 6.10 1.24 55.1 21.0 41.2 16.3 MEDIA ASTRO MEDIA PRIMA STAR 2.63 0.69 2.35 3.40 0.60 1.35 1.23 0.60 0.55 13.2 0.9 3.3 14.6 2.8 4.0 19.9 80.9 70.9 18.1 24.5 58.2 4.8 1.0 17.9 4.9 3.3 7.7 2.95 1.39 2.60 -10.8 -50.4 -9.6 2.47 0.66 2.19 6.5 5.3 7.3 1.2 -40.0 4.9 -30.4 -14.4 -44.0 -6.5 -6.6 -5.1 -26.2 -2.6 -67.2 0.23 4.14 0.63 7.03 0.44 6.48 1.33 1.51 0.28 113.3 35.0 4.0 5.1 46.0 14.2 16.5 48.3 10.7 88.2 -14.0 -29.0 0.5 42.7 6.0 -4.3 49.3 -64.6 -31.8 1.28 5.5 -20.6 BANKS & FINANCIAL SERVICES AFG 3.87 AFFIN 2.65 AMBANK 4.50 CIMB 6.73 HLBANK 15.90 MAYBANK 9.72 PBBANK 20.58 RHBBANK 5.07 BURSA 10.10 CONSTRUCTION BPURI GADANG GAMUDA IJM PESONA SENDAI SUNCON WCT LITRAK Building Materials CHINHIN WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N HUPSENG NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX OIL & GAS DNEX 0.48 0.76 1.04 3.7 4.6 13.1 10.5 2.1 2.1 0.69 LCTITAN 5.59 6.88 na 43.1 64.9 13.0 8.6 3.0 5.5 6.53 MHB 0.65 0.78 1.69 -2.0 -0.5 na na 0.0 0.0 1.16 MISC 7.39 6.56 0.94 56.3 46.9 13.1 15.8 4.1 4.1 7.90 PANTECH 0.64 0.69 1.14 4.0 6.1 16.0 10.4 2.8 4.3 0.68 PCHEM 7.40 7.62 1.04 44.3 44.7 16.7 16.6 2.6 2.7 7.80 SENERGY 1.55 1.71 2.57 6.6 4.0 23.5 39.1 0.6 0.6 2.10 SERBADK 2.24 2.77 na 22.1 25.2 10.1 8.9 3.0 3.4 2.30 UMWOG 0.31 0.80 1.81 -12.0 -3.5 na na 0.0 0.0 0.95 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.35 1.55 1.49 11.3 12.3 12.0 11.0 0.0 0.0 1.98
  13. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 1.68 2.98 4.54 24.70 9.14 6.52 Target Price BETA (RM) 1.52 3.58 4.14 26.18 9.80 7.52 1.69 0.41 1.26 0.78 1.41 0.36 EPS (sen) FY17 FY18 1.0 12.3 17.3 103.4 34.2 37.5 PER (X) FY17 FY18 2.5 169.9 14.1 24.2 21.0 26.2 120.4 23.9 37.3 26.7 34.5 17.4 66.0 21.2 21.6 20.5 24.5 18.9 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 3.0 2.3 2.1 2.1 2.5 3.5 3.0 2.7 3.5 2.4 2.5 2.6 2.52 3.70 4.81 25.50 9.70 6.55 -33.3 -19.5 -5.6 -3.1 -5.8 -0.4 1.42 2.95 4.30 23.00 7.56 5.50 PROPERTY GLOMAC 0.64 0.70 0.62 1.4 5.7 44.2 11.2 4.3 4.2 0.83 -22.4 0.61 HUAYANG 0.84 0.96 0.50 17.3 10.2 4.9 8.2 4.8 2.4 1.43 -41.4 0.80 IBRACO 0.88 0.94 0.51 3.3 10.5 27.0 8.4 2.3 4.5 1.05 -16.2 0.76 IOIPG 2.06 2.23 1.07 18.9 16.9 10.9 12.2 2.9 2.9 2.46 -16.3 1.85 MAHSING 1.48 1.76 0.83 14.3 13.5 10.3 10.9 4.4 4.4 1.70 -12.9 1.34 SNTORIA 0.80 0.98 0.22 6.2 10.3 13.0 7.8 1.3 1.3 1.00 -20.0 0.69 SPB 4.90 5.98 0.49 25.6 22.8 14.2 15.9 2.4 2.4 5.19 -5.6 4.32 SPSETIA 3.63 4.10 0.73 11.6 12.5 38.3 35.6 3.9 3.9 4.50 -19.3 3.10 SUNWAY 4.44 4.15 0.46 15.8 15.3 17.5 18.0 1.1 1.1 4.52 -1.8 2.89 Note: SUNWAY proposed bonus issue of shares and warrants. Ex-Target price RM1.69. For more details please refer to 15.06.17 report. REIT SUNREIT 1.73 1.86 0.53 8.9 10.1 19.5 17.1 5.3 5.8 1.84 -6.0 1.63 CMMT 1.46 1.72 0.39 8.1 8.6 18.1 16.9 5.8 6.1 1.72 -15.1 1.45 % Chg YTD 18.3 1.0 5.6 7.4 20.9 18.5 8.4 -12.4 3.2 2.9 12.8 9.2 4.9 5.0 16.6 11.5 10.4 15.9 13.4 17.1 53.6 -7.9 -25.7 -12.0 5.7 3.5 0.0 10.8 16.0 48.0 6.1 0.7 0.6 -4.6 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.08 24.30 18.60 14.58 1.40 1.22 21.47 19.37 17.38 1.45 0.60 0.75 0.78 0.77 0.55 6.8 98.2 87.6 131.8 8.4 6.9 102.3 100.1 130.4 11.4 15.8 24.7 21.2 11.1 16.7 15.7 23.8 18.6 11.2 12.2 6.5 3.0 3.4 3.0 3.6 6.5 3.1 3.8 3.1 3.6 1.69 25.70 22.50 14.80 1.64 -36.1 -5.4 -17.3 -1.5 -14.6 1.00 23.00 17.82 13.00 1.38 8.5 5.7 4.4 12.2 1.4 -21.2 2.1 -12.7 4.9 -6.0 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.09 4.87 5.79 6.35 5.40 4.90 5.85 7.40 1.39 0.88 0.80 0.62 15.7 20.0 24.5 22.7 16.9 20.4 24.7 23.4 32.5 24.3 23.6 28.0 30.1 23.9 23.4 27.1 1.6 4.1 3.5 3.2 1.7 4.2 3.5 3.3 5.51 5.19 6.60 6.84 -7.6 -6.2 -12.3 -7.2 4.11 4.63 5.48 5.81 23.8 5.2 5.7 9.3 7.8 0.8 -3.2 6.7 TECHNOLOGY Semiconductor & Electronics IRIS 0.18 INARI 2.50 MPI 13.88 UNISEM 3.99 0.25 2.75 15.40 4.30 1.40 0.77 0.20 0.50 -1.3 11.4 89.5 26.9 0.6 13.1 110.2 32.1 na 22.0 15.5 14.8 32.5 19.1 12.6 12.4 0.0 3.9 1.9 3.0 0.0 3.7 1.9 3.0 0.22 2.65 14.30 4.25 -18.2 -5.7 -2.9 -6.1 0.10 1.60 7.20 2.27 80.0 56.6 92.8 75.8 63.6 50.6 87.3 69.1 3.41 8.80 3.76 8.10 0.93 1.26 44.0 17.2 37.6 17.5 7.7 51.1 9.1 50.3 1.2 1.1 1.5 1.1 3.59 9.45 -5.0 -6.9 2.16 5.91 57.9 48.9 48.9 45.2 1.63 3.78 1.80 4.05 0.75 0.78 12.0 17.1 13.6 15.1 13.5 22.0 12.0 25.0 2.6 3.4 3.1 3.0 1.83 4.46 -11.1 -15.2 1.48 3.58 10.1 5.6 4.6 -12.1 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 20.35 OCBC 11.00 UOB 23.16 PLANTATIONS WILMAR IFAR 3.28 0.46 Target Price Beta (S$) EPS (cent) FY17 FY18 PER (X) FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 23.30 12.00 25.40 1.23 1.16 1.06 172.9 87.7 192.9 189.2 92.4 206.5 11.8 12.5 12.0 10.8 11.9 11.2 2.9 5.7 3.0 2.9 6.7 3.0 22.3 11.5 24.6 -8.5 -4.3 -5.9 14.80 8.84 17.98 37.5 32.1 28.8 17.4 23.3 13.5 3.72 0.53 0.96 1.05 28.9 4.9 31.1 5.2 11.3 9.5 10.5 8.9 2.4 2.6 2.7 2.8 4.0 0.6 -18.0 -22.7 3.08 0.44 6.5 4.5 -8.6 -12.4 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.
  14. RESULTS UPDATE TA Securities Friday , September 15, 2017 FBMKLCI: 1,781.37 Sector: Media A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Astro Malaysia Holdings Berhad TP: RM3.40 (+29.3%) Last Traded: RM2.63 Revenue Rebounds as Adex Outperforms Industry BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Paul Yap, CFA Tel: +603-2167 9603 paulyap@ta.com.my Review Astro reported a 1HFY18 core net profit of RM432mn (+32.4% QoQ, +33.0% YoY). This made up 56.9% and 60.3% of ours and consensus estimates. We deem the results within our expectations, as we expect content costs to normalise upwards ahead. An unchanged dividend of 3.0sen/share was declared during the quarter (YTD: 6.0sen/share). After two quarters of decline, revenue (+7.1% QoQ) rebounded on stronger adex and Go Shop revenues. Adex benefitted from Hari Raya spending, while the group continues to gain market share. Although Go Shop revenues increased 12.9% QoQ, we opine year end revenue targets of ~RM400mn appears optimistic at this juncture. Staying resilient, TV subscription revenues were flattish during the quarter. As such, growth (+109k QoQ) in its TV customer base would have been driven by NJOI customers. With some room for upside, ARPU targets were kept at RM102-102.5 (1HFY18: RM100.8). ARPU within its premium segment (1.4mn homes) is growing at a decent rate of 3% YoY. However, market sentiment remains soft, with contractions seen in households with ARPU <RM60. Supplementing revenues, EBITDA margins improved 4.1pp to 38.8% in the 2QFY18. Content cost declined 12.8% QoQ, as a result of contract renegotiations. Implying this might normalise upwards, content cost guidance was left unchanged at RM1.75bn (1HFY18: RM758mn), with potential upsides. Underlying its commitment to content, savings made will be channelled to the creation of new content IPs. Impact We trim our FY18/FY19/FY20 home shopping revenues by 27% to RM287.2mn/RM373.4mn/RM485.4mn. We cut our FY18/FY19/FY20 earnings by 0.1%/0.7%/1.4% to RM758.2mn/RM758.6mn/RM833.6mn. Outlook We see a shift in growth levers ahead. Despite rising competitive threats, its Pay TV business is expected to remain relevant, leveraging on its strength in local, live and premium content. That said, Pay TV subscription revenues are anticipated to grow at more modest rates. Instead, future opportunities will stem from its home shopping and digital ventures. Go Shop revenues are estimated to grow more than seven folds to RM1.9bn by FY22 – underpinned by increased customer penetration and ambitions to expand regionally. Home shopping contributions to total revenue is estimated to increase to 21% (FY17: 5%), with subscription revenues moderating to 55% (FY17: 78%) in FY22. Share Information Bloomberg Code ASTRO MK Stock Code 6399 Listing Main Market Share Cap (mn) 5209.5 Market Cap (RMmn) 13,701.0 52-wk Hi/Lo (RM) 2.95/2.47 12-mth Avg Daily Vol ('000 shrs) 2072.3 Estimated Free Float (%) 42.1 Beta 1.2 Major Shareholders (%) Pantai Cahaya Bulan Ventures - 20.7 All Asia Media Equities Limited - 19.5 E Asia Broadcast Network Systems - 8.1 EPF- 6.1 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY18 (0.1) 758.2 716.9 105.8 FY19 (0.7) 758.6 760.4 99.8 Buy (Maintained) Financial Indicators FY18 5.3 39.8 6.6 11.2 111.5 (0.3) (9.9) FY19 4.6 39.2 6.7 10.5 98.5 (0.3) (10.0) vs TA vs Consensus % of FY 56.9 60.3 Within Above Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth ASTRO (2.2) (1.9) (6.7) (9.9) FBM KLCI 0.5 (0.5) 3.7 7.8 Net Gearing (x) CFPS (sen) P/CFPS (x) ROE (%) ROA (%) NTA/Share (RM) P/NTA (x) Scorecard (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg Page 1 of 4 www.taonline.com.my
  15. TA Securities 15-Sep-17 A Member of the TA Group Valuation We lower our TP for Astro to RM3 .40/share (from RM3.50/share). This is based on a DCF valuation with WACC of 7.0% and long term growth rate at 1.0%. We believe the stock provides a good mix of growth and dividends. Supported by resilient Pay TV subscription revenues, dividend yields are attractive at 4.9-5.3%. Meanwhile, future growth is expected to be driven by its home shopping and digital ventures. Valuations remain attractive, with the stock trading more than 1SD below its historical average PE and EV/EBITDA. BUY. Figure 1: Forward PE Figure 2: Forward EV/EBITDA x x 32.0 11.5 +1sd: 28.6x 11.0 +1sd: 10.4x 10.5 10.0 Mean: 9.7x 9.5 Source: Companies, TA Securities Aug-16 Feb-16 May-16 Aug-15 Nov-15 Feb-15 May-15 Aug-14 Nov-14 Feb-14 May-14 Aug-13 Feb-13 Nov-12 Aug-17 Feb-17 May-17 Aug-16 Nov-16 Feb-16 May-16 Aug-15 Nov-15 Feb-15 May-15 Aug-14 Nov-14 Feb-14 May-14 Aug-13 Nov-13 8.0 Feb-13 8.5 16.0 May-13 18.0 Nov-12 9.0 Nov-13 -1sd: 9.1x -1sd: 20.1x 20.0 May-13 22.0 Source: Companies, TA Securities Table 1: Earnings Summary (RMmn) FYE Jan 31 (RMmn) FY16 Revenue 5,475.4 EBITDA 1,940.7 Depreciation & amortisation* (825.8) EBIT 1,114.9 Net finance costs (293.8) Share of associates 8.3 EI 0.0 PBT 829.4 Taxation (221.4) MI 7.4 Net profit 615.3 Core net profit 656.1 EPS (sen) 12.6 PE (x) 20.9 EV/EBITDA (x) 8.8 DPS (sen) 12.0 Dividend yield (x) 4.6 *excludes amortisation of film library and programme rights FY17 5,612.6 1,816.7 (721.5) 1,095.2 (236.3) 1.8 (15.1) 845.5 (228.5) 6.7 623.7 689.9 13.3 19.8 9.4 12.5 4.8 Page 2 of 4 FY18F 5,648.8 1,918.3 (680.8) 1,237.4 (234.2) 1.9 0.0 1,005.1 (241.2) (5.7) 758.2 758.2 14.6 18.1 8.9 13.0 4.9 FY19F 5,835.3 1,868.7 (629.3) 1,239.4 (228.4) 2.0 0.0 1,012.9 (243.1) (11.2) 758.6 758.6 14.6 18.0 9.1 13.5 5.1 FY20F 6,059.0 1,938.0 (597.2) 1,340.8 (220.5) 2.0 0.0 1,122.4 (269.4) (19.4) 833.6 833.6 16.0 16.4 8.8 14.0 5.3 Aug-17 Mean: 24.3x 24.0 Feb-17 26.0 May-17 28.0 Nov-16 30.0
  16. TA Securities 15-Sep-17 A Member of the TA Group Table 2 : Results Analysis (RMmn) 2QFY17 1,428 1,095 72 186 74 426 (179) 248 9 (89) 1 0 169 (45) 1 126 162 2.4 3.0 48 38 1QFY18 1,326 1,065 56 143 62 460 (160) 301 20 (51) 0 0 270 (77) 4 196 186 3.8 3.0 24 54 2QFY18 1,420 1,063 77 208 70 551 (169) 382 13 (55) (0) 0 339 (94) 1 246 246 4.7 3.0 52 49 QoQ (%) 7.1 (0.1) 36.6 45.5 12.9 19.6 5.8 27.0 (34.5) 7.8 (500.0) n/a 25.9 22.0 (65.7) 25.7 32.4 25.0 0.0 116.7 (9.3) YoY (%) (0.6) (2.9) 6.0 11.8 (5.4) 29.2 (5.2) 54.0 39.4 (38.3) (136.4) n/a 100.7 110.5 0.0 96.3 51.9 95.0 0.0 8.3 28.9 1HFY17 2,791 2,171 144 336 138 903 (374) 530 66 (150) 3 0 449 (124) 2 328 325 6.3 6.0 71 62 1HFY18 2,746 2,128 133 351 132 1,011 (329) 682 33 (106) (0) 0 609 (171) 5 442 432 8.5 6.0 76 103 YoY (%) (1.6) (2.0) (8.2) 4.5 (4.3) 11.9 (11.9) 28.8 (50.1) (29.1) (110.7) n/a 35.6 38.5 113.6 35.0 33.0 34.5 0.0 7.0 66.1 Profitability ratio EBITDA margin (%) PBT margin (%) Net profit margin (%) Tax rate (%) 29.8 11.8 11.3 26.4 34.7 20.3 14.0 28.6 38.8 23.9 17.3 27.7 4.1 3.6 3.3 (0.9) 9.0 12.1 6.0 1.3 32.4 16.1 11.6 27.5 36.8 22.2 15.7 28.1 4.5 6.1 4.1 0.6 Operating expenditure Content costs Others 497 687 405 624 353 690 (12.8) 10.6 (29.0) 0.4 906 758 (16.3) 4,975 5,153 5,262 109 288 99 395 101 639 1.6 61.8 Revenue Subscription Others Adex Go Shop EBITDA Depreciation and amortisation EBIT Finance income Finance costs Associates and JV EI PBT Tax MI Net profit Core net profit EPS (sen) DPS (sen) Cash capex Capitalised capex Operational info TV Customer Base ('000) ARPU (RM) Connected boxes ('000) Figure 3: TV Households and Penetration Figure 4: TV Customer Base and ARPU '000 7,300 7,261 7,250 % '000 74 6,000 RM 101 5,262 72 72 7,200 70 100 5,000 98 7,150 68 7,100 4,000 66 94 2,000 Source: Companies, TA Securities Source: Companies, TA Securities Page 3 of 4 2QFY18 1QFY18 4QFY17 3QFY17 2QFY17 90 1QFY17 0 4QFY16 92 3QFY16 1,000 3QFY15 2QFY18 1QFY18 4QFY17 3QFY17 2QFY17 1QFY17 4QFY16 3QFY16 56 2QFY16 6,800 1QFY16 58 4QFY15 6,850 3QFY15 6,900 60 2QFY16 62 6,950 96 3,000 1QFY16 64 7,000 4QFY15 7,050
  17. TA Securities 15-Sep-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. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Friday, September 15, 2017, the analyst, Paul Yap Ee Xing, who prepared this report, has interest in the following securities covered in this report: (a) nil for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 4 of 4
  18. C O M P A N Y U P D A T E TA Securities A Member of the TA Group Friday , 15 September, 2017 FBMKLCI: 1,781.37 Sector: Construction MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Bina Puri Holdings Berhad TP: RM0.375(+1.4%) Last traded: RM0.37 Secure Road Works Package SELL THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Ooi Beng Hooi Tel: +603-2167 9612 benghooi@ta.com.my Bina Puri’s 51%-owned indirect subsidiary, Sungai Long Industries Sdn Bhd, has accepted the award from Aktif Unggul Sdn Bhd to undertake the pavement works and temporary road diversion at CH14+000 to CH24+700 (Package 2) in relation to the project known as “Projek menaiktaraf Jalan Persekutuan FT54 dari Sungai Buloh to Assam Jawa, Daerah Kuala Selangor” for an amount of RM35.5mn. The project is scheduled to commence on 16 December 2017 and to be completed within a period of 31 months. This is the second construction job win for Bina Puri in 2017 after securing construction works for “I’m Fine Condominium” in Bangkok. The new job brings the YTD contract wins to RM70.5mn. The outstanding construction order book stands at RM1.5bn, about 1.8x of FY16 construction revenue. Exhibit 1: Construction Jobs Secured YTD Date Project 14 Aug 17 I’m Fine Condominium, Bangkok Pavement works and temporary road diversion (Package 2) for 14 Sep 17 Jalan Persekutuan FT54 TOTAL Source: Company, TA Research Contract Sum Duration (RMmn) 35.0 12 months 35.5 31 months 70.5 Assuming a PBT margin of 5%, the project is expected to contribute RM0.7mn of net profit (PATAMI) or 0.3sen/share throughout the construction period. Impact No change to our earnings forecast as this job win is within our FY17 order book replenishment assumption of RM800mn. Valuation Maintain our target price at RM0.375, based on unchanged 8x CY18 EPS. Downgrade the stock to SELL as we think the current share price has almost reflected its value. Share Information Bloomberg Code BIN MK Bursa BPURI Stock Code 5932 Listing Main Market Share Cap (mn) 266.4 Market Cap (RMmn) 145.5 52-wk Hi/Lo (RM) 0.51/0.325 12-mth Avg Daily Vol ('000 shrs) 915.6 Estimated Free Float (%) 54.6 Beta 0.62 Major Shareholders (%) Jentera Jati Sdn Bhd - 7.65 Tee Hock Seng - 6.94 Ng Keong Wee - 5.29 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 12.5 12.2 Hold (Downgraded) Financial Indicators Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) FY17 176.1 (4.5) (8.2) 0.8 0.9 0.4 Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth BPURI FBM KLCI 4.2 0.5 (11.9) (0.5) (16.9) 3.7 (6.3) 7.8 FY18 154.4 2.6 14.3 0.8 0.9 0.4 (12-Mth) Share Pricerelative to the FBM KLCI Source: Bloomberg Page 1 of 2 www.taonline.com.my
  19. TA Securities 15-Sep-17 A Member of the TA Group Financial Statements Profit & Loss (RMmn) YE Dec 31 Revenue EBITDA Dep. & amortisation Finance cost Associates Jointly controlled entity Investment income PBT Taxation MI Net profit Core net profit Core EPS (sen) GDPS (sen) Div yield (%) Cash Flow (RMmn) YE Dec 31 PBT Adjustment Dep. & amortisation Changes in WC 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 2015 2016 2017F 2018F 2019F 1,227.9 1,035.3 1,086.1 1,150.4 1,070.3 76.5 73.9 70.0 65.7 63.9 (13.8) (15.3) (24.8) (20.7) (19.0) (15.9) (20.0) (19.9) (18.6) (17.2) (11.0) (7.5) 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 24.0 8.8 0.2 0.2 0.2 35.7 26.8 25.6 26.6 28.0 (12.9) (13.4) (9.7) (10.7) (11.2) (19.5) (12.3) (3.4) (3.8) (4.3) 3.4 1.1 12.5 12.2 12.5 7.5 8.1 12.5 12.2 12.5 3.6 3.4 4.8 4.7 4.8 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.0 2.7 2015 35.7 42.6 13.8 (17.9) 17.6 (13.0) 5.1 (7.9) 3.5 24.2 (4.3) (6.6) 16.8 26.5 66.9 (14.0) 81.0 2016 26.8 61.7 15.3 (38.8) 22.5 (29.6) 5.5 (24.1) 1.0 4.2 0.0 (29.3) (24.1) (4.3) 81.0 (10.6) 59.8 2017F 25.6 44.6 24.8 (65.7) (25.1) (9.8) 3.8 (6.0) 9.8 9.0 0.0 (24.8) (6.0) (11.7) 59.8 0.0 48.1 2018F 26.6 39.3 20.7 17.8 54.4 (10.4) 3.2 (7.2) (40.2) 0.0 0.0 33.0 (7.2) 6.7 48.1 0.0 54.8 2019F 28.0 36.0 19.0 32.8 68.5 (9.6) 2.9 (6.7) (44.2) 0.0 (2.6) 40.1 (6.7) 15.1 54.8 0.0 69.9 Balance Sheet (RMmn) YE Dec 31 Fixed assets Others Total NCA Cash Others CA 2015 2016 175.2 191.0 305.9 294.7 481.1 485.6 81.0 59.8 1,221.8 1,149.3 1,302.8 1,209.1 Total Assets 1,783.8 1,694.7 1,452.0 1,449.4 1,392.3 ST debt Others CL 458.5 760.8 1,219.3 438.1 668.1 1,106.2 408.1 403.5 811.6 358.1 425.1 783.2 308.1 398.0 706.1 183.4 89.6 273.0 204.8 79.2 284.0 231.9 79.2 311.1 241.7 79.2 320.9 247.5 79.2 326.7 115.3 121.4 101.6 101.6 75.0 81.4 216.5 223.0 (0.4) 0.0 291.5 304.4 1,783.8 1,694.7 130.4 114.0 84.8 244.5 0.0 329.3 1,452.0 130.4 126.2 88.6 256.7 0.0 345.3 1,449.4 130.4 136.1 92.9 266.6 0.0 359.5 1,392.3 LT borrowings Others LT Liabilities Share cap Reserves NCI Shareholders' fund Treasury shares Total Equity Total Equity & Liabilities Ratio YE Dec 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) 2017F 2018F 159.4 145.8 294.8 294.9 454.2 440.7 48.1 54.8 949.8 953.9 997.9 1,008.7 2019F 133.6 295.0 428.6 69.9 893.9 963.7 2015 6.2 3.6 (10.9) 10.4 0.0 0.0 2016 7.1 3.4 (4.2) 10.8 0.0 0.0 2017F 6.4 4.8 40.4 7.7 0.0 0.0 2018F 5.7 4.7 (2.3) 7.9 0.0 0.0 2019F 6.0 4.8 2.3 7.7 1.0 2.7 (553.3) 1.9 3.7 0.5 0.9 0.4 (571.1) 1.9 3.7 0.5 0.9 0.4 (579.9) 1.8 5.3 0.8 0.9 0.4 (533.0) 1.5 4.9 0.8 0.9 0.4 (473.7) 1.3 4.8 0.9 1.0 0.4 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 Friday, September 15, 2017, the analyst, Ooi Beng Hooi, who prepared this report, has interest in the following securities covered in this report: (a) nil This report has been prepared by TA SECURITIES HOLDINGS BERHAD for purposes of CMDF-Bursa Research Scheme ("CBRS") administered by Bursa Malaysia Berhad and will be compensated to undertake the scheme. TA SECURITIES HOLDINGS BERHAD has produced this report independent of any influence from the CBRS or the subject company. For more information about CBRS and other research reports, please visit Bursa Malaysia’s website at: http://www.bursamalaysia.com/market/listed-companies/research-repository/research-reports for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
  20. COMPANY UPDATE TA Securities Friday , September 15, 2017 FBM KLCI: 1,781.37 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 TP: RM4.67 Ex:RM1.17 KPJ Healthcare Berhad Last traded: RM4.30 Ex: RM1.08 Fruition of Expansion Plans, the Key to Driving Growth Hold THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Wilson Loo (+8.6%) Tel: +603-2167 9606 wilsonloo@ta.com.my From our meeting with KPJ’s management, we gathered that 1HFY17’s subdued patient traffic (outpatients -1.5% YoY; inpatients +1.0% YoY) was beyond seasonality with competition (i.e. from general practitioners and some new private hospitals) and the absence of new hospital openings of late also being contributors. Nonetheless, management is hopeful that patient traffic for FY17 should at least sustain YoY with tie-ups with corporate clients (~70% of group revenue) mostly intact and efforts to promote patient traffic being undertaken. Management also reiterated that barring risks of delays, the fruition of the group’s on-going plans to expand its hospital network and capacity across Malaysia would be an impetus for near-to-medium term growth that it lacked of late. Meanwhile, CAPEX for FY17-FY19 was guided at ~RM250mn-RM300mn and despite being highly levered, the group has room to strengthen its balance sheet. Our TP is reduced to RM4.67/share (Ex: RM1.17/share) upon updating our CAPEX assumptions and performing housekeeping to capacity expansion. We downgrade the stock to Hold in view of the narrowed upside potential. Subdued Patient Traffic in 1HFY17 Beyond Seasonality To recap, KPJ continued to experience subdued patient traffic in 1HFY17 with marginal changes in outpatients (-1.5% YoY) and inpatients (+1.0% YoY). Management alluded that this was beyond the seasonally slower 2QFY17, marked by the Ramadan season and festive holidays, whereby both outpatients and inpatients declined QoQ respectively by 0.5% and 2.3%. Other contributing factors included: 1) general practitioners being more economical alternatives for outpatients seeking primary care amidst the weak market sentiment, 2) competition from some new private hospitals (i.e. Columbia Asia vs. KPJ Damansara in Petaling Jaya & Gleneagles Kota Kinabalu vs. KPJ Sabah in Sabah), and 3) the absence of new hospital openings since 2015 (KPJ Pahang which opened in May 2016 is considered an exception due to it being a relocation project for Kuantan Specialist Hospital). We view the absence of new hospital openings as a key factor, reason being that IHH, the group’s closest competitor in Malaysia in terms of bed capacity, has fared better with inpatient growth of 3.9% YoY alongside the ramp up of its newer hospitals which opened in 2015 – Gleneagles Kota Kinabalu in Sabah and Gleneagles Medini in Johor. Q www.taonline.com.my Share Information Bl oomberg Code KPJ MK Stock Code 5878 Listi ng Mai n Market Share Cap (mn) 1,054.3 Market Cap (RMmn) 1,054.3 Par Val ue 0.50 52-wk Hi /Lo (RM) 4.32/3.85 12-mth Avg Dail y Vol ('000 shrs) Esti mated Free Fl oat (%) 632.2 18.6 Beta 0.4 Major Shareholders (%) Johor Corp - 44.0 EPF - 12.9 Waqaf An-Nur Corporati on Bhd - 7.2 Forecast Revision FY17 FY18 (0.6) (0.8) Net profi t (RMm) 138.9 171.3 Consensus Forecast Revis ion (%) 156.0 173.7 TA's / Cons ens us (%) 89.1 98.6 Previous Rating Buy (Downgraded) Financial Indicators FY17 FY18 Net geari ng (x) 0.7 0.7 CFPS (RM) 0.4 0.3 P/CFPS (x) 12.0 13.8 ROAA (%) ROAE (%) NTA/Share (RM) Pri ce/ NTA (x) 3.4 8.1 1.3 4.0 9.5 1.4 3.3 3.1 KPJ FBM KLCI Share Performance (%) Price Change 1 mth 2.4 0.5 3 mth 1.7 -0.5 6 mth 6.2 3.7 12 mth 2.4 7.8 (12-Mth) Share Price relative to the FBM KLCI Figure 1: Inpatient YoY Growth Figure 2: Consumer Sentiment Index 140 10% KPJ IHH 120 8% Optimism Threshold 117 104 94 100 6% 80 4% 100 70 74 79 2015 2016 1HFY17 60 2% 40 0% 20 -2% 2013 2014 2015 Source: Companies, TA Securities 2016 1HFY17 0 2012 2013 2014 Source: MIER, TA Securities Page 1 of 6 Source: Bloomberg