Bursa Malaysia Daily Market Report - 18 April

Transcription

1. Tuesday , 18 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Malaysia Marine & Heavy Engineering: Nabs Bokor Phase 3 CPP 2. Petronas Gas Berhad: Third Party Ruins the Party Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Tuesday, 18 April 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (17.04.2017) Volume (mil) +/-chg (RMmn) Main Market 2,092.8 -104.8 1,671.1 Warrants 106.3 -59.5 11.6 ACE Market 660.9 -116.8 95.7 Bond 25.7 14.0 1.7 ETF 0.0 -0.02 0.0 Total 2,885.7 1,780.2 Off Market 127.2 -45.8 202.7 Value +/-chg -47.9 -5.8 -31.3 0.6 -0.04 -88.8 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP April Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA 1,733.93 12,334.60 17,215.20 1,727.50 20,636.92 5,856.79 7,327.59 18,355.26 2,145.76 24,261.66 3,138.30 1,575.91 5,577.49 3,222.17 1,958.55 5,889.95 Off Market (mn) (RM) BKOON 40.0 @ 0.45 GBGAQRS 19.1 @ 1.17 VS-WA 11.7 @ 0.32 SPSETIA 10.0 @ 3.68 IJM 6.0 @ 3.47 ARK 5.0 @ 0.50 ARK-WA 5.0 @ 0.07 EKOVEST 5.0 @ 1.30 MLGLOBAL-WA 3.8@ 0.65 KARYON 3.5 @ 0.31 SEACERA 3.1 @ 0.92 UOADEV 3.0 @ 2.63 ROHAS 3.0 @ 0.96 REX 3.0 @ 1.90 VERSATL 1.8 @ 1.25 UTDPLT 1.3 @ 28.20 2.94 26.48 64.16 2.00 Value/ Volume 0.80 0.11 0.14 0.07 1.49 0.62 1.59 Up Down 343 281 56 56 53 56 4 3 0 1 456 397 % chg % YTD chg 0.17 0.22 0.37 0.12 5.62 7.57 16.99 5.63 183.67 0.90 51.64 0.89 0.00 0.00 19.63 0.11 10.88 0.51 0.00 0.00 -30.94 -0.98 -13.59 -0.85 -39.06 -0.70 -23.90 -0.74 -28.10 -1.41 0.00 0.00 Top 10 KLCI Movers Mkt Cap. Counter Mkt Cap. (RM’mn) MAYBANK 91,855 PBBANK 76,921 SIME 63,112 CIMB 48,333 MAXIS 48,292 AXIATA 45,587 GENTING 34,524 MISC 32,720 IOICORP 27,793 KLK 25,538 4.42 8.80 2.59 -3.97 5.89 10.28 8.94 2.14 5.30 3.82 -0.54 3.96 Based on Chg (RM) 0.07 0.02 0.01 0.07 0.01 0.02 0.01 0.02 0.02 0.16 Vol. (mn) 14.49 1.60 2.91 7.95 4.43 3.38 1.45 0.68 5.05 1.57 Review & Outlook Bursa Malaysia shares rebounded Monday as local funds returned to nibble after last week's selloff, but sentiment stayed soft amid rising geopolitical tensions over North Korea and the Middle East. The KLCI rose 2.94 points to settle at 1,733.93, off an early low of 1,729.13 and high of 1,736.29, as gainers led losers 456 to 397 on moderate turnover of 2.88bn shares worth RM1.78bn. While the overnight Wall Street rebound may support further recovery on the local market today, gains may be capped by the cautious tone underpinned by persisting geopolitical tensions in North Korea and Syria. The 50-day moving average support level for the index, now at 1,725, must hold to prevent a test of next key support of 1,700. Immediate overhead resistance stays at 1,758, the 23.6%FR of the 1,310 to 1,896 upswing, closely matching the recent high. MRCB looks set for rebound with a successful climb above the mid Bollinger band (RM1.69) to re-test the 5/4/17 peak (RM1.80), while a confirmed breakout should aim for the 123.6%FP (RM1.98) ahead. Key supports are seen at the 23.6%FR (RM1.62) and 50-day ma (RM1.56). UEM Sunrise is primed for oversold rebound towards the 23.6%FR (RM1.26), with a convincing breach to re-visit the 5/4/17 high (RM1.34), while a breakout should target the 123.6%FP (RM1.42) and 138.2%FP (RM1.47) going forward. Key chart supports are at the 50%FR (RM1.16) and 200-day ma (RM1.12). • • • • • • • • • • • • • • • • • Important Dates PASUK GB - 1:1 Rights Issue - RI of up to 405.8m shares. SUKGB 1 rights share for every 1 existing share held, at an issue price of RM0.10 per rights share. Trading of Rights: 11/04 - 17/04/2017. Application Closed: 26/04/2017. LISTING ON: 11/05/2017. News Bites Petroliam Nasional Bhd and its 60.63%-owned subsidiary, Petronas Gas Bhd, are still in talks with the Energy Commission to finalise the structure for the liberalisation of the gas business. Malaysia Marine and Heavy Engineering Holdings Bhd has won a contract worth RM1bn for the central processing platform within Petroliam Nasional Bhd's Bokor Phase 3 re-development project. Ekovest Bhd's unit has been appointed as the design and build contractor to undertake the 'Blue River Project', valued at RM79mn, by the Kuala Lumpur City Council. New Hoong Fatt Holdings Bhd is buying a 24,575sqm land in West Java, Indonesia for RM17.97mn to set up a new manufacturing plant for further expansion. AirAsia Bhd has incorporated a wholly-owned subsidiary, as it set sights to become a full-fledged charter and private unscheduled business jet operator. Key Alliance Group Bhd has bagged a contract worth RM24.75mn to design, build and manage a data centre at Persoft Tower in Petaling Jaya, Selangor. Kelington Group Bhd has won a SGD7.67mn contract to provide works for a process piping system in Singapore. Thriven Global Bhd is in talks to acquire the remaining 49% stake in its 51%-owned subsidiary Mulpha Argyle Property Sdn Bhd, and then plan to sell off the entire unit. BTM Resources Bhd is planning to collaborate with two Chinese companies to establish a RM435mn municipal solid waste-to-energy generation plant in Melaka. Dayang Enterprise Holdings Bhd has fixed the price of the shares to be issued under its private placement exercise at RM1.016 apiece. The government of Malaysia has filed a winding-up petition against a subsidiary of Country Heights Holdings Bhd over some RM22.7mn of tax liabilities the unit owes the government. WCT Holdings Bhd proposed a share dividend on the basis of one treasury share for every 165 existing units to reward the construction firm's shareholders. Prasarana Malaysia Bhd is maintaining its current revenue mix, under which 30% is derived from non-fare operations as the Malaysian Government-owned entity expands abroad. Asia Bioenergy Technologies Bhd is planning to undertake a three-for-one consolidation of its share capital to reduce its share price fluctuation. Excel Force MSC Bhd has proposed a one-for-two share split to increase the liquidity of its shares. China's GDP grew 6.9% in 1Q17, higher than median estimate of 6.8%, as investment picked up, retail sales rebounded and factory output strengthened amid robust credit growth and further strength in property markets. The New York Fed said its general business conditions index tumbled to 5.2 in April after dipping to 16.4 in March, although a positive reading still indicates growth. Exchange Rate USD/MYR 4.4045 -0.0028 USD/JPY 108.33 -0.5100 EUR/USD 1.063 0.0008 Commodities Futures Palm Oil (RM/mt) 2,495.00 -8.00 Crude Oil ($/Barrel) 52.75 -0.16 Gold ($/tr.oz.) 1,286.30 -3.80 DISCLAIMER The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
3. TA Securities Tuesday , April 18, 2017 FBMKLCI: 1,733.93 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 Rebound Seen Capped by Cautious Undertone Bursa Malaysia shares rebounded Monday as local funds returned to nibble after last week’s selloff, but sentiment stayed soft amid rising geopolitical tensions over North Korea and the Middle East. The KLCI rose 2.94 points to settle at 1,733.93, off an early low of 1,729.13 and high of 1,736.29, as gainers led losers 456 to 397 on moderate turnover of 2.88bn shares worth RM1.78bn. 50-day ma Support at 1,725 While the overnight Wall Street rebound may support further recovery on the local market today, gains may be capped by the cautious tone underpinned by persisting geopolitical tensions in North Korea and Syria. The 50-day moving average support level for the index, now at 1,725, must hold to prevent a test of next key support of 1,700. Immediate overhead resistance stays at 1,758, the 23.6%FR of the 1,310 to 1,896 upswing, closely matching the recent high. Buy on Weakness MRCB & UEM Sunrise MRCB looks set for rebound with a successful climb above the mid Bollinger band (RM1.69) to re-test the 5/4/17 peak (RM1.80), while a confirmed breakout should aim for the 123.6%FP (RM1.98) ahead. Key supports are seen at the 23.6%FR (RM1.62) and 50-day ma (RM1.56). UEM Sunrise is primed for oversold rebound towards the 23.6%FR (RM1.26), with a convincing breach to re-visit the 5/4/17 high (RM1.34), while a breakout should target the 123.6%FP (RM1.42) and 138.2%FP (RM1.47) going forward. Key chart supports are at the 50%FR (RM1.16) and 200-day ma (RM1.12). Geopolitical Risks Continue to Weigh on Asian Markets Asian equities were mostly mixed in Monday trade, as investors have been jittery amid an escalation in geopolitical tensions this month and uncertainty about the upcoming French election. There is no sign of easing in tensions over North Korea's nuclear and missile program after the reclusive country's failed missile test on Sunday. The lira jumped after Turkey voted to hand the president sweeping authority. Japan’s Nikkei share average rose on Monday as recent selling was overdone while the yen extended gains to a five-month high. Prime Minister Shinzo Abe urged North Korea to refrain from taking further provocative actions, comply with U.N. resolutions and abandon its nuclear missile development. The Nikkei reversed earlier losses to rise 0.1 percent to 18,355.26, off a low of 18,224.68 in early trades. Trading was light with many markets still shut for the Easter holiday. Meanwhile, China stocks were lower as the country's top securities regulator vowed to "brandish the sword" and combat market misbehavior. The Korean situation overshadowed better than expected Chinese economic data. Main sectors fell broadly led by utilities and materials shares. China Fortune Land Development Co dived the maximum allowed 10 percent as the heat came out of a rally in stocks linked to a new economic zone near Beijing. The Shanghai Composite fell by 0.74 percent or 23.9 points to finish at 3,222.17, and the Shenzhen Composite dropped 1.41 percent or 28.098 points to close at 1,958.552. Page 1 of 6
4. TA Securities 18-Apr-17 A Member of the TA Group Wall Street Rebound as Weekend Risk Fade U .S. stocks bounced back on Monday after the S&P 500 closed the previous session at a twomonth low, as last weekend filled with geopolitical worries ended more calmly than investors expected. Vice President Mike Pence said the "era of strategic patience" with North Korea was over. Pence made the comments on the border between North and South Korea a day after North Korea's failed missile test. The Trump administration is working with China and its allies on a response to North Korea's missile program. Market focus shifted from geopolitical tension to earnings as investors are closely watching for signs of further gains in corporate profits. U.S. companies were expected as of March 31 to report their best quarterly earnings since 2011, according to FactSet. Meanwhile, earnings season was set to kick into full gear this week, with Goldman Sachs, Bank of America and eBay, among others, set to report. The technology sector of the S&P500 closed up for the first time in 11 sessions, while financials rose for the second time in the same period. The Dow Jones Industrial Average rose 183.67 points, or 0.9 percent, to 20,636.92, the S&P 500 gained 20.06 points, or 0.86 percent, to 2,349.01 and the Nasdaq Composite added 51.64 points, or 0.89 percent, to 5,856.79. Page 2 of 6
5. TA Securities 18-Apr-17 A Member of the TA Group News In Brief Corporate Petroliam Nasional Bhd and its 60 .63%-owned subsidiary, Petronas Gas Bhd, are still in talks with the Energy Commission to finalise the structure for the liberalisation of the gas business, which includes commercial terms such as tariff as well as technical aspects. (The Edge) Malaysia Marine and Heavy Engineering Holdings Bhd has won a contract worth RM1bn for the central processing platform (CPP) within Petroliam Nasional Bhd’s (Petronas) Bokor Phase 3 re-development project. Its wholly-owned subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd was awarded the Engineering, Procurement, Construction, Installation and Commissioning contract by Petronas Carigali Sdn Bhd. The first steel cut is expected to commence in the third quarter of 2018, with the project scheduled to be completed in the second quarter of 2020. Upon completion, the new CPP will be installed at Bokor field in Baram Delta, offshore Sarawak, in a water depth of 70m. (Bursa Malaysia) Prasarana Malaysia Bhd is maintaining its current revenue mix, under which 30% is derived from non-fare operations as the Malaysian Government-owned entity expands abroad. Prasarana had been exploring new global opportunities in Brunei, Indonesia, India and Saudi Arabia. (The Edge) Ekovest Bhd's unit has been appointed as the design and build contractor to undertake the 'Blue River Project', valued at RM79mn, by the Kuala Lumpur City Council (DBKL). Its wholly-owned subsidiary EkoRiver Construction Sdn Bhd which has received the letter of award from DBKL, will be undertaking the job which is expected to take 18 months and be completed before Aug 30. (Bursa Malaysia) New Hoong Fatt Holdings Bhd is buying a 24,575sqm land in West Java, Indonesia for RM17.97mn to set up a new manufacturing plant for further expansion. Its indirect whollyowned unit PT Auto Global Parts Indonesia had inked a binding sales and purchase agreement with PT Gerbang Teknologi Cikarang for the land buy, which it will finance with internal funds. The leasehold industrial land is located about 35 km east of Jakarta, along the Bekasi-Cikampek Corridor, and can be reached in approximately one hour from Jakarta’s Central Business district. (Bursa Malaysia) AirAsia Bhd has incorporated a wholly-owned subsidiary, as it set sights to become a fullfledged charter and private unscheduled business jet operator. The objective of establishing AirAsia Corporate Charter Sdn Bhd is to manage charter activities and as an asset holding company. (Bursa Malaysia) Key Alliance Group Bhd has bagged a contract worth RM24.75mn to design, build and manage a data centre at Persoft Tower in Petaling Jaya, Selangor. Its wholly-owned subsidiary DVM Innovate Sdn Bhd received the conditional letter of award (LOA) from Avenue Escapade Sdn Bhd. The project is expected to take 15 months to complete, from the day of fulfilment of the conditions stipulated within the LOA. (Bursa Malaysia) Kelington Group Bhd has won a SGD7.67mn (RM24.2mn) contract to provide works for a process piping system. The contract awarded by Givaudan Singapore Pte Ltd entail the provision of engineering, design, procurement, installation, testing and commissioning of process piping system in Singapore. (Bursa Malaysia) Thriven Global Bhd is in talks to acquire the remaining 49% stake in its 51%-owned subsidiary Mulpha Argyle Property Sdn Bhd (MAPSB), and then plan to sell off the entire unit. Proceeds raised from this deal will be used to recoup the losses suffered from its Page 3 of 6
6. TA Securities 18-Apr-17 A Member of the TA Group investment in MAPSB . (Bursa Malaysia) BTM Resources Bhd is planning to collaborate with two Chinese companies, namely the China Western Power International Pte Ltd and Sichuan No 2 Electric Power Construction Company, to establish a RM435mn municipal solid waste-to-energy generation plant in Melaka. It inked a Memorandum of Understanding with China Western Power and Sichuan Power last Friday (April 14), which spells out the intentions of all parties involved in the project. (Bursa Malaysia) Dayang Enterprise Holdings Bhd has fixed the price of the shares to be issued under its private placement exercise at RM1.016 apiece. This represents a discount of 9.993% to the five-day volume weighted average market price of Dayang Enterprise shares up to April 14. To recap, on Feb 24, Dayang announced it intends to raise around RM87.71mn by placing out some 87.71mn shares. (Bursa Malaysia) The government of Malaysia has filed a winding-up petition against a subsidiary of Country Heights Holdings Bhd over some RM22.7mn of tax liabilities the unit owes the government. The petition was served on its wholly-owned subsidiary Country Heights Sdn Bhd. (Bursa Malaysia) WCT Holdings Bhd proposed a share dividend on the basis of one treasury share for every 165 existing units to reward the construction firm's shareholders. It will fix the share dividend's entitlement date later and it is for the financial year ended Dec 31, 2016. (Bursa Malaysia) Asia Bioenergy Technologies Bhd is planning to undertake a three-for-one consolidation of its share capital to reduce its share price fluctuation. Shareholders of its convertible securities may also convert them in the same manner. The group presently has an issued and paid up capital of 1.11bn shares. (Bursa Malaysia) Excel Force MSC Bhd has proposed a one-for-two share split to increase the liquidity of its shares. The share split involves the subdivision of every one existing share into two split shares, which would halve its share price to below RM1 per share. (Bursa Malaysia) Page 4 of 6
7. TA Securities 18-Apr-17 A Member of the TA Group News In Brief Economy Asia China ’s Economy Accelerates as Retail, Investment Pick Up China’s economy accelerated for a second-straight quarter as investment picked up, retail sales rebounded and factory output strengthened amid robust credit growth and further strength in property markets. Gross domestic product increased 6.9 percent in the first quarter from a year earlier, compared with a 6.8 percent median estimate in a Bloomberg survey. It was the first back-to-back acceleration in seven years. Fixed-asset investment excluding rural areas expanded 9.2 percent for the first three months, accelerating from 8.1 percent growth last year. Retail sales increased 10.9 percent from a year earlier in March, compared with a median estimate of 9.7 percent in a Bloomberg survey. Industrial output rose 7.6 percent last month from a year earlier, compared with an estimated 6.3 percent rise. The expansion further cements a rebound as producer prices surge, industrial output picks up and soaring credit fuels investment. Policy makers have shifted to a more neutral monetary stance as they seek to ease financial risk and reduce excess industrial capacity. The broadest measure of new credit rose more than estimated last month amid strong growth in shadow banking. Aggregate financing grew 2.12 trillion yuan ($308 billion). The labor market has been holding up too: The surveyed jobless rate fell in March from February, while the level in big cities was below 5 percent at end of last month, the NBS said. China added 3.34 million new jobs in the first quarter. Other data pointed to further rebalancing away from the old industrial growth drivers. Consumption contributed 77.2 percent to growth in the first quarter, an NBS spokesman said at a briefing in Beijing. Last year, 64.6 percent of growth came from consumption. (Bloomberg) Indonesia's Exports Surge in March Indonesia's exports grew sharply in March, figures from the Central Statistical Agency showed Monday. Exports surged 23.55 percent annually to $14.59 billion in March. Likewise, imports climbed 18.19 percent to $13.36 billion. As a result, the trade surplus totaled $1.23 billion in March. On a monthly basis, exports grew 15.68 percent and imports climbed 17.65 percent. Separately, Indonesia's external debt grew at a slower pace in February amid weaker borrowing from both the public and private sectors, figures from Bank Indonesia showed Monday. External debt grew 2.7 percent year-on-year to $321.7 billion following 3.6 percent increase in January. Bank Indonesia said the development of external debt in February remains healthy. However, the bank said it continues to be vigilant about the risks to the national economy. The bank also said that it will continue to monitor the development of external debt, particularly the private sector external debt. Public sector external debt in February grew 10.3 percent, which was smaller than the previous month's growth of 12.4 percent. (RTT News) Singapore NODX Grows More than Expected in March Singapore's non-oil domestic exports grew at a faster-than-expected pace in March, due to the increase in both electronic and non-electronic exports, data from the National Enterprise Singapore showed Monday. NODX expanded 16.5 percent year-over-year in March, much faster than the 7.3 percent gain expected by economists. However, that was well below the 21.1 percent surge in February. Exports of electronic products rose 5.2 percent annually in March, following a 17.2 percent spike in the prior month. It was forecast to rise by 12.7 percent. The increase in electronic domestic exports was largely contributed by ICs, parts of PCs and consumer electronics. Similarly, non-electronic NODX climbed 20.8 percent yearly in March, after a 22.7 percent growth in the preceding month. On a monthly basis, NODX decreased a seasonally adjusted 1.1 percent from February, when it rose by 1.1 percent. (RTT News) Page 5 of 6
8. TA Securities 18-Apr-17 A Member of the TA Group U .S. New York Manufacturing Growth Slows More than Expected in April While a report released by the Federal Reserve Bank of New York on Monday showed continued growth in the New York manufacturing sector in the month of April, the pace of growth slowed by much more than anticipated. The New York Fed said its general business conditions index tumbled to 5.2 in April after dipping to 16.4 in March, although a positive reading still indicates growth. Economists had expected the index to edge down to 15.0. The bigger than expected drop by the headline index came amid a notable slowdown in new orders growth, as the new orders index plunged to 7.0 in April after jumping to a multi-year high of 21.3 in March. On the other hand, the report said the shipments index rose to 13.7 in April from 11.3 in March, indicating a faster rate of growth. Job growth in the New York manufacturing sector also accelerated, with the number of employees index climbing to 13.9 in April from 8.8 in March. The index reached its highest level in just over two years. (RTT News) Homebuilder Sentiment Cools in April Following Record Reading in March A survey of confidence among American home builders fell in April but remains optimistic headed into the spring, new data showed Monday. The National Association of Home Builders said its housing-market index fell by three points to 68 in April. The index reached 71 in March, its strongest reading since June 2005. Economists expected home builder confidence for the month of April to hit 70, according to a poll by Thomson Reuters. Last month's results were the highest seen on the index in 12 years, as President Donald Trump has been viewed as rolling back regulations in the industry. In Monday's report, the trade group's chief economist, Robert Dietz, said "there is continued demand for new construction," but "builders are facing several challenges" including "hefty regulatory costs and ongoing increases in building material prices." All three of the index's components reported losses in April but are maintaining healthy levels. The components gauging current sales conditions fell three points to 74, while the index charting sales expectations over the next six months dropped three points to 75. Lastly, the component measuring buyer traffic fell one point to 52. (CNBC News) Share Buy-Back: 17 April 2017 Company FITTERS Bought Back Price (RM) Hi/Lo (RM) 100,000 0.41 0.41/0.405 Total Treasury Shares 17,431,600 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. liability for any direct or indirect loss arising from the use of this document. the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 6 of 6 We accept no We, our associates, directors, employees may have an interest in
9. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 17-Apr-17 2.11 2.38 6.05 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.36 2.04 5.12 0.96 0.55 1.21 10.8 22.7 17.7 15.8 23.8 27.6 19.6 10.5 34.2 13.4 10.0 22.0 5.6 3.8 1.8 7.5 3.8 3.0 2.44 2.70 7.00 -13.5 -11.9 -13.6 1.95 1.95 4.43 8.2 22.1 36.6 -0.9 11.2 32.4 4.10 3.40 5.40 6.10 15.80 9.20 22.10 4.70 8.50 1.26 0.94 1.27 1.33 0.66 0.93 0.80 1.27 0.70 35.8 29.4 46.4 50.6 101.3 73.7 136.6 49.0 36.4 37.7 33.1 50.6 55.6 109.8 82.8 140.4 51.7 38.2 11.1 9.5 10.5 10.8 13.5 12.2 14.6 10.4 26.3 10.5 8.4 9.6 9.8 12.5 10.9 14.2 9.9 25.0 3.8 2.9 3.3 3.7 3.0 5.5 2.8 2.4 3.6 3.8 2.9 3.7 4.1 3.0 5.5 2.9 2.4 3.6 4.23 2.92 5.03 5.83 14.00 9.16 20.28 5.39 10.00 -6.4 -4.8 -3.0 -6.5 -2.3 -1.5 -1.8 -5.4 -4.3 3.60 2.08 3.90 4.11 12.70 7.50 18.52 4.43 8.20 10.0 33.7 25.1 32.5 7.7 20.3 7.6 15.1 16.7 6.5 16.3 13.2 20.8 1.3 10.0 1.0 8.3 8.1 0.45 1.29 5.10 3.47 0.70 1.84 2.01 5.95 0.49 1.45 5.49 3.27 0.58 1.90 1.50 5.58 0.81 0.71 1.04 1.09 1.16 na 1.05 0.13 5.9 12.8 31.6 16.8 9.6 12.6 12.8 44.3 5.9 13.1 36.4 20.9 9.9 12.5 12.7 45.8 7.6 10.1 16.1 20.6 7.3 14.6 15.7 13.4 7.6 9.8 14.0 16.6 7.1 14.7 15.8 13.0 0.0 2.2 2.4 2.7 1.4 3.0 1.5 4.2 2.2 2.2 2.4 2.7 1.4 3.0 1.5 4.2 0.51 1.35 5.33 3.61 0.75 1.87 2.14 6.13 -12.7 -4.6 -4.3 -3.9 -6.7 -1.6 -6.1 -2.9 0.36 0.78 4.59 3.07 0.41 1.42 1.41 5.02 23.6 65.4 11.1 13.0 72.8 29.6 42.6 18.5 2.3 22.9 6.7 8.4 21.7 8.2 16.2 1.2 1.98 2.00 0.46 15.4 15.6 12.8 12.7 5.1 5.1 2.40 -17.5 1.93 2.6 -1.5 15.00 17.86 15.41 21.08 0.57 0.59 69.6 93.1 77.5 21.5 101.9 19.2 19.4 17.5 4.6 4.7 5.1 5.1 15.20 18.74 -1.3 -4.7 12.38 14.56 21.2 22.7 7.8 9.0 2.39 7.60 24.08 80.76 2.98 1.78 4.66 0.95 2.23 9.59 26.14 83.60 3.76 2.74 4.17 1.10 0.45 0.34 0.34 0.38 0.49 0.71 0.45 0.56 6.5 35.9 102.6 288.8 22.3 25.1 12.7 9.3 7.5 40.5 124.5 313.3 24.7 25.3 15.8 12.8 36.8 21.2 23.5 28.0 13.4 7.1 36.7 10.2 31.7 18.8 19.3 25.8 12.1 7.0 29.6 7.4 0.8 3.9 2.6 3.5 5.0 4.5 1.0 5.3 0.9 5.0 3.1 3.8 5.7 4.5 1.1 5.3 3.00 9.53 27.00 81.98 3.08 2.04 4.72 1.07 -20.3 -20.3 -10.8 -1.5 -3.2 -12.7 -1.3 -11.5 2.11 7.30 20.18 74.12 1.92 1.43 4.14 0.78 13.3 4.1 19.3 9.0 55.4 24.5 12.5 21.2 -7.0 3.7 2.6 3.3 16.9 2.9 7.6 18.9 47.00 54.22 1.03 271.1 271.8 17.3 17.3 5.6 5.6 55.64 -15.5 40.31 16.6 6.4 9.26 5.50 10.34 6.10 1.34 1.26 45.0 25.7 50.9 27.9 20.6 21.4 18.2 19.7 0.5 1.5 0.6 1.6 9.90 5.81 -6.5 -5.3 7.50 4.17 23.5 31.8 16.5 21.7 2.81 0.13 3.81 0.10 0.72 1.23 22.1 0.2 24.6 0.3 12.7 55.5 11.4 41.4 5.7 0.0 6.8 0.0 3.42 0.13 -17.8 -3.8 2.81 0.05 0.0 150.0 -5.1 150.0 6.04 4.01 6.40 4.61 0.78 0.50 13.9 13.3 17.9 16.5 43.5 30.1 33.7 24.3 0.7 1.5 0.7 1.9 6.79 4.37 -11.0 -8.2 5.78 3.85 4.5 4.2 -4.9 -4.1 4.90 6.15 1.96 4.83 2.09 4.50 6.80 1.90 5.05 2.55 0.56 0.11 0.36 -0.20 0.29 18.2 35.8 16.2 26.6 4.3 21.2 40.5 18.2 30.2 7.1 27.0 17.2 12.1 18.2 48.7 23.1 15.2 10.7 16.0 29.6 1.7 2.9 2.5 2.8 0.5 2.0 3.3 2.8 3.1 0.8 5.03 7.07 2.88 5.45 2.68 -2.6 -13.0 -31.9 -11.4 -22.0 3.81 5.90 1.94 4.20 1.96 28.6 4.2 1.0 15.0 6.6 1.4 -6.7 -7.1 -9.7 -11.4 INDUSTRIAL SCIENTX SKPRES 7.98 1.27 8.50 1.75 0.54 0.50 75.3 8.8 83.0 13.7 10.6 14.4 9.6 9.3 2.6 3.5 3.0 5.4 8.05 1.44 -0.9 -11.8 5.75 1.12 38.8 13.4 19.1 -1.6 MEDIA ASTRO MEDIA PRIMA STAR 2.67 1.18 2.35 3.20 0.85 1.95 1.04 0.69 0.59 13.3 7.7 15.0 14.5 8.0 15.8 20.1 15.2 15.7 18.4 14.8 14.9 4.7 5.2 7.7 4.9 5.4 7.7 3.01 1.52 2.70 -11.3 -22.4 -13.0 2.56 1.00 2.20 4.3 18.0 6.8 2.7 2.6 4.9 OIL & GAS EATECH MHB MISC PANTECH PCHEM SENERGY UMWOG UZMA 0.62 0.99 7.33 0.62 7.59 1.97 0.63 1.86 0.45 0.96 8.16 0.52 7.91 2.02 0.54 1.40 0.92 1.79 0.84 1.26 1.11 2.42 1.97 1.39 11.5 -0.4 50.6 3.7 34.7 5.2 -14.7 11.3 11.9 1.1 57.1 4.3 39.3 7.8 -12.4 12.2 5.3 na 14.5 16.7 21.9 37.6 na 16.5 5.2 88.7 12.8 14.4 19.3 25.2 na 15.2 0.0 0.0 4.1 2.4 2.5 0.5 0.0 0.0 0.0 0.0 4.1 2.8 2.5 0.5 0.0 0.0 1.18 1.34 9.00 0.64 7.80 2.10 1.04 2.04 -47.9 -26.1 -18.6 -2.4 -2.7 -6.2 -39.4 -8.8 0.45 0.84 6.88 0.44 5.95 1.29 0.61 1.30 38.2 17.9 6.5 42.5 27.6 52.7 4.1 43.1 -0.8 8.2 -0.3 39.3 8.7 21.6 -28.0 9.4 BANKS & FINANCIAL SERVICES AFG 3.96 AFFIN 2.78 AMBANK 4.88 CIMB 5.45 HLBANK 13.68 MAYBANK 9.02 PBBANK 19.92 5.10 RHBBANK BURSA 9.57 CONSTRUCTION BPURI GADANG GAMUDA IJM SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.02 3.10 4.42 23.98 9.28 6.22 1.53 3.88 3.93 22.75 8.24 7.52 1.76 0.45 1.08 0.94 1.26 0.50 6.3 13.7 18.7 111.8 30.8 32.7 11.1 15.7 21.1 119.1 35.3 34.5 31.8 22.6 23.6 21.5 30.2 19.0 18.2 19.7 21.0 20.1 26.3 18.0 2.5 2.3 2.3 2.3 2.4 2.6 2.5 2.6 2.7 2.5 3.0 2.7 2.52 3.70 4.81 25.50 9.55 6.51 -19.8 -16.2 -8.1 -6.0 -2.8 -4.5 1.31 3.10 4.07 22.62 7.10 5.53 54.2 0.0 8.6 6.0 30.7 12.5 30.3 -8.8 0.5 -0.1 14.6 3.7 0.71 1.07 0.96 2.01 1.47 0.83 3.67 3.29 0.69 1.09 1.00 2.10 1.60 0.80 4.10 3.40 0.65 0.64 0.33 0.92 0.69 0.31 0.67 0.48 3.4 20.0 7.3 14.7 14.5 6.4 27.8 31.2 7.0 17.4 11.2 15.3 12.5 9.7 24.7 33.3 20.6 5.4 13.1 13.7 10.1 13.0 13.2 10.5 10.1 6.1 8.6 13.1 11.8 8.5 14.8 9.9 5.6 3.7 3.7 3.5 4.1 1.2 3.8 3.6 5.6 3.3 4.2 3.7 3.7 1.2 3.8 3.6 0.83 1.43 1.08 2.46 1.70 1.00 3.77 3.32 -14.5 -25.3 -11.6 -18.3 -13.5 -17.5 -2.7 -0.9 0.68 1.05 0.91 1.85 1.34 0.69 2.80 2.84 4.4 1.9 4.9 8.8 9.7 19.6 31.1 15.8 2.2 -5.3 -4.5 3.1 2.8 3.1 17.3 9.7 1.70 1.60 1.79 1.78 0.53 0.63 8.9 8.1 10.1 8.5 19.2 19.8 16.8 18.8 5.2 5.6 5.9 5.9 1.84 1.72 -7.6 -7.0 1.57 1.43 8.3 11.9 -1.2 4.6 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.22 24.00 19.28 13.70 1.51 1.45 20.19 19.02 17.19 1.81 0.71 0.75 0.78 1.02 0.58 6.9 98.4 88.2 133.8 8.8 8.3 102.3 101.3 132.7 10.6 17.6 24.4 21.9 10.2 17.3 14.7 23.5 19.0 10.3 14.3 5.7 3.0 3.2 4.2 6.6 4.7 3.2 3.7 2.9 6.6 1.80 25.70 22.66 14.90 1.64 -32.2 -6.6 -14.9 -8.1 -7.9 1.14 22.16 19.28 13.00 1.38 7.0 8.3 0.0 5.4 9.4 -10.9 0.8 -9.5 -1.4 1.3 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.08 5.10 6.43 6.42 5.25 4.90 5.95 6.95 1.27 0.97 0.73 0.67 17.0 20.8 25.1 21.4 17.9 21.1 25.4 22.3 29.9 24.5 25.6 29.9 28.3 24.2 25.3 28.8 1.7 4.1 3.1 3.0 1.8 4.1 3.1 3.1 5.99 5.19 6.49 6.90 -15.2 -1.7 -0.9 -7.0 4.11 4.31 5.36 5.81 23.6 18.3 20.0 10.5 7.6 5.6 7.5 7.9 TECHNOLOGY Semiconductor & Electronics IRIS 0.17 INARI 1.99 MPI 10.90 UNISEM 3.05 0.14 2.35 12.00 3.55 1.34 0.78 0.49 0.79 -1.1 10.4 84.3 26.9 0.8 12.4 96.6 29.1 na 19.2 12.9 11.3 20.5 16.1 11.3 10.5 0.0 2.1 2.1 3.9 0.0 2.5 2.1 3.9 0.24 2.13 12.22 3.30 -29.2 -6.6 -10.8 -7.6 0.10 1.28 6.86 2.12 70.0 55.2 58.9 43.9 54.5 19.9 47.1 29.2 3.04 7.20 3.02 7.68 1.16 1.46 40.3 9.8 41.9 10.2 7.5 73.2 7.3 70.8 1.3 1.4 1.6 1.4 3.30 7.31 -7.9 -1.5 1.88 5.76 61.7 25.0 32.8 18.8 1.77 4.09 1.88 4.51 0.84 0.66 15.4 19.3 21.5 17.4 11.5 21.2 8.2 23.5 3.1 3.5 4.0 3.2 1.87 4.59 -5.3 -10.9 1.23 3.74 43.9 9.4 11.3 -4.9 PROPERTY GLOMAC HUAYANG IBRACO IOIPG MAHSING SNTORIA SPSETIA SUNWAY REIT SUNREIT CMMT TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 18.90 OCBC 9.59 UOB 21.65 PLANTATIONS WILMAR IFAR 3.43 0.48 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 16.70 8.50 19.40 1.21 1.12 1.08 173.8 87.8 195.7 190.2 10.9 92.5 10.9 209.4 11.1 9.9 10.4 10.3 3.2 5.7 3.2 3.2 6.7 3.2 19.4 9.8 22.2 -2.7 -1.9 -2.3 14.63 8.84 17.41 29.2 16.8 24.4 9.0 7.5 6.1 3.45 0.51 0.91 1.10 28.9 3.9 31.1 4.3 11.0 11.2 2.3 2.0 2.6 2.2 4.0 0.6 -14.3 -20.2 2.96 0.44 15.9 8.0 -4.5 -9.5 11.9 12.1 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
11. COMPANY UPDATE TA Securities Tuesday , April 18, 2017 FBM KLCI: 1,733.93 Sector: Oil & Gas A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Malaysia Marine & Heavy Engineering TP: RM0.96 (-3.3%) Last traded: RM0.94 Nabs Bokor Phase 3 CPP Sell THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Kylie Chan Sze Zan kyliechan@ta.com.my +(603) 2167 9601 MMHE has secured a new RM1bn contract from Petronas Carigali. The contract involves Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) works for the Central Processing Platform (CPP) at Bokor Phase 3 Re-Development Project. First steel cut is expected to commence in 3Q18, and the project is targeted for completion in mid2Q20. Bokor field is a mature brownfield located offshore Sarawak (water depth: 70 m). Our Take This is MMHE’s first contract announcement win for the year. This new project is a positive surprise, given its substantial contract value. Recall that MMHE has not secured a major project exceeding RM1bn in value since Malikai TLP in Feb-13. Assuming a net margin of 4%, this new contract could potentially contribute profit of RM6mn/18mn in FY18/19. Inclusive of this new project win, we estimate that the group has outstanding orderbook of RM1.6bn. On the flipside, we are disappointed by the late commencement date of this new project (1st steel cut: 3Q18). Therefore, we deem this contract as part of FY18 orderbook replenishment. Furthermore, profit recognition will likely commence later, starting from FY19. Recall that MMHE applies “square method” accounting for complex EPCIC projects – which translates to back loaded profit recognition. Impact This new contract win exceeds our assumptions of RM500mn orderbook replenishment for FY18. Accordingly, we tweak our FY18 assumption higher to RM1.5bn. As a result, our FY18/19 core profit forecast is raised to RM24mn/48mn (previous: RM18mn/30mn). Valuation We roll forward our valuation base year to MMHE to CY18, but our TP of RM0.96 based on 0.6x FY18 P/B remains intact. Maintain Sell as nearterm earnings weakness persist, underpinned by low yard utilization. 7 3. SHARE INFORMATION 9. Listing Code MMHE MK Stock Code 5186 Listing Main Market Share Cap (m) 1,600 Market Cap (RM 'mn) 1,584 Par Value (RM) 0.50 52-wk Hi/Lo (RM) 1.34/0.84 12-mth Avg Daily Vol ('000) 881 Estimated Free Float (%) 10.5 Beta 2.2 Major Shareholders (%) MISC Bhd 66.5 Technip S.A 8.5 FORECAST REVISION FY17 Forecast Revision (%) FY18 0 34 Revised net profit (RMmn) (6.7) 23.9 Consensus (RMmn) 31.4 77.4 TA/Consensus (%) nm nm Previous Rating Sell (Maintained) FINANCIAL INDICATORS Net Debt/Equity (x) FY17 FY18 Net Cash Net Cash ROA (%) (0.2) 0.7 ROE (%) (0.3) 0.9 NTA/Share (RM) 1.6 1.6 P/NTA (x) 0.6 0.6 SHARE PERFORMANCE Price Change (%) MMHE FBM KLCI 1 mth 1.5 (0.6) 3 mth (2.9) 4.1 6 mth (3.9) 4.0 12 mth (18.2) 0.9 (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg Page 1 of 3 www.taonline.com.my
12. TA Securities 18-Apr-17 A Member of the TA Group Figure 2 : Earnings Summary Income Statememt FYE 31 Dec (RMmn) Revenue EBITDA Depreciation Net finance cost Share of JCEs Pretax profit Taxation MI Net Profit Core Net Profit Per Share Data EPS DPS BPS Net Tang Asset Ratios FYE 31 Dec (RMmn) Valuations PER Dividend yield EV/EBITDA P/BV P/NTA FCF Yield 2015 2016 2017E 2018F 2019F 2,459.0 1,191.2 1,085.1 1,403.7 1,791.8 137.2 64.3 54.5 71.6 100.4 (80.1) (78.7) (74.1) (75.8) (78.9) 10.0 20.0 19.6 16.0 14.5 (1.4) (7.6) (7.7) (7.9) (8.0) 22.5 (135.0) (7.7) 3.9 27.9 21.9 0.5 1.0 20.0 20.0 (0.6) 0.3 0.0 (0.0) (0.1) 43.9 (134.3) (6.7) 23.9 47.8 87.1 (1.3) (6.7) 23.9 47.8 (sen) (sen) (RM) (RM) 2.7 0.0 1.7 1.7 (8.4) 0.0 1.6 1.6 (0.4) 0.0 1.6 1.6 1.5 0.0 1.6 1.6 3.0 0.0 1.6 1.6 2015 2016 2017E 2018F 2019F (x) 18.2 >-100 >-100 66.4 33.1 (%) (x) (x) (x) (%) 0.0 5.4 0.6 0.6 26.7 0.0 14.6 0.6 0.6 (14.0) 0.0 19.3 0.6 0.6 (9.4) 0.0 15.4 0.6 0.6 (5.5) 0.0 11.7 0.6 0.6 (6.3) EBITDA margin EBIT margin PBT margin Net margin ROE ROA (%) (%) (%) (%) (%) (%) 5.6 2.3 0.9 1.8 1.7 1.0 5.4 (1.2) (11.3) (11.3) (5.2) (3.3) 5.0 (1.8) (0.7) (0.6) (0.3) (0.2) 5.1 (0.3) 0.3 1.7 0.9 0.7 5.6 1.2 1.6 2.7 1.9 1.4 Liquidity ratios Current ratio Quick ratio (x) (x) 1.4 1.4 1.6 1.6 2.1 2.1 1.9 1.8 Leverage ratios Total Debt/ Assets Total Debt/Equity Net debt(cash)/ Equity Interest coverage (x) n.m. n.m. n.m. n.m. n.m. (x) n.m. n.m. n.m. n.m. n.m. (x) Net Cash Net Cash Net Cash Net Cash Net Cash (x) n.m. n.m. n.m. n.m. n.m. Growth ratios Revenue EBITDA PBT Net Profit Core EPS (%) (%) (%) (%) (%) Profitability ratios Key Assumptions Order Replenishment (RM 'mn) (8.9) (20.5) (81.1) (23.6) (23.6) (51.6) (53.2) >-100 >-100 >-100 1.7 1.6 (8.9) (15.1) (94.3) 394.1 394.1 29.4 31.3 >-100 >-100 >-100 27.6 40.2 613.8 100.4 100.4 500 1,500 500 Balance Sheet FYE 31 Dec (RMmn) Fixed assets Prepaid Land Lease Pymt Others Non-Current Assets 2015 1,642.2 230.5 95.6 1,968.3 2016 1,544.9 223.4 87.9 1,856.2 2017E 1,557.7 223.4 80.1 1,861.3 2018F 1,594.1 223.4 72.3 1,889.9 2019F 1,658.6 223.4 64.3 1,946.3 Inventories Trade and other rcvb Cash and Deposits Others Current Assets 12.1 1,557.5 850.3 4.1 2,424.1 10.7 1,177.0 671.1 11.0 1,869.9 9.8 743.2 532.9 11.0 1,296.9 12.7 961.4 481.7 11.0 1,466.8 16.2 1,227.3 416.5 11.0 1,670.9 Total Assets 4,392.4 3,726.1 3,158.2 3,356.7 3,617.2 0.0 0.0 0.0 20.0 0.0 20.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Borrowings Trade & other Payables Others Current Liabilities 0.0 1,691.1 18.0 1,709.1 0.0 1,146.0 21.5 1,167.5 0.0 594.6 31.6 626.2 0.0 769.2 31.6 800.8 0.0 981.8 31.6 1,013.0 Total Liabilities 1,709.1 1,187.5 626.2 800.8 1,013.0 Share capital Reserves Minority Interests Equity 800.0 1,876.3 3.8 2,683.3 800.0 1,742.0 3.0 2,538.6 800.0 1,735.3 3.0 2,532.0 800.0 1,759.2 3.0 2,555.9 800.0 1,807.0 3.1 2,603.8 Total Equity + Liabilities 4,392.4 3,726.1 3,158.2 3,356.7 3,617.2 2015 2016 2017E 2018F 2019F 22.5 80.1 (10.0) 1.4 493.3 14.5 21.9 44.7 668.4 -135.0 78.7 (20.0) 7.6 (163.2) 20.2 0.5 104.7 (106.5) -7.7 74.1 (19.6) 7.7 (116.7) 19.8 1.0 0.0 (41.3) 3.9 75.8 (16.0) 7.9 (46.5) 16.0 20.0 0.0 61.1 27.9 78.9 (14.5) 8.0 (56.7) 14.5 20.0 0.0 78.2 Capex Interest Expense Others CF from Investing (152.3) (4.5) 19.0 (137.8) (122.2) (0.3) 19.9 (102.5) (86.8) (0.3) 0.0 (87.1) (112.3) 0.0 0.0 (112.3) (143.3) 0.0 0.0 (143.3) Dividends Others CF from Financing 0.0 (269.5) (269.5) 0.0 20.0 20.0 0.0 0.0 0.0 261.1 589.2 850.3 (189.0) 850.3 661.3 Borrowings Deferred tax liabilities Non-current liabilities FYE 31 Dec (RMmn) Cash Flow Statement Pretax profit Depreciation Net Interest JCEs Working Cap Changes Interest Received Income Tax Paid Others CF from Operations Net Cash Flow Beginning Cash Ending Cash Page 2 of 3 (128.4) 661.3 532.9 0.0 0.0 0.0 (51.2) 532.9 481.7 0.0 0.0 0.0 (65.2) 481.7 416.5
13. TA Securities 18-Apr-17 A Member of the TA Group ( T HI S P AGE I S I NT E N T I ON AL L Y L E FT B L ANK) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
14. COMPANY UPDATE TA Securities Tuesday , April 18, 2017 FBMKLCI: 1,733.93 Sector: Oil & Gas A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 4 Petronas Gas Berhad TP: RM19.02 (-4%) Last Traded: RM19.80 Third Party Ruins the Party Sell THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Kylie Chan Sze Zan Tel: +603-2167-9602 kyliechan@ta.com.my We recently met management of Petronas Gas Bhd (Pet Gas), where discussions largely centered on the looming liberalization of gas infrastructure (transmission and regasification). Whilst negotiations with EC are still fluid, we believe there is material risk of lower returns. This is underpinned by expectations of:- 1) lower return on assets, in-line with peers, and 2) due to Pet Gas’ reduced WACC. In the worst case scenario, we estimate topline erosion of 15% post-tariff revision. The corresponding reduction in FY18-19 net profit is 13%, resulting in lowered TP of RM17.53 (-10%). On the bright side, we expect limited downside to asset valuation, as we believe methodologies will remain status quo for both regasification assets (Net Book Value), and transmission pipelines (Depreciated Replacement Cost). Additionally, management assuaged our concerns of capacity risk, as it shall remain status quo that Pet Gas’ capacity is fully-underwritten. Lastly, we believe that the group will maintain its market monopoly in the near-to-medium term, due to high barriers of entry. Based on our estimates, the cost of building a transmission network similar to Pet Gas’ exceeds RM9.0bn. We maintain Sell on Pet Gas (TP: RM19.02), mainly due to earnings risk postTPA and lofty valuations. (I) GAS SUPPLY AMENDMENT ACT & 3rd PARTY ACCESS www.taonline.com.my Share Information Bloomberg Code PTG MK Stock Code 6033 Listing Main Market Share Cap (mn) 1,978.7 Market Cap (RMmn) 38,150.0 Par Value 1.00 52-wk Hi/Lo (RM) 22.66/19.28 12-mth Avg Daily Vol ('000 shrs) 1,219.0 Estimated Free Float (%) 19.0 Beta 0.7 Major Shareholders (%) Petronas - 60.7 EPF - 10.4 KWAP - 5.4 Forecast Revision Forecast Revision (%) FY17 FY18 (1.3) 10.6 Net Profit (RM mn) 1,745.9 2,004.1 Consensus 1,774.6 1,896.4 98.4 105.7 TA's / Consensus (%) Previous Rating Sell (Maintained) Financial Indicators FY17 FY18 Gas Transportation Tariffs Will be Tweaked. To recap, GSA enables Third Party Access (TPA) to Pet Gas’ pipelines and regasification infrastructure. Upon implementation (target: 2018), Pet Gas would likely tweak the terms of its existing 2014 agreements with sole customer, Petronas. Currently, Pet Gas is waiting for the Energy Commission (EC) to issue guidelines for determination of gas transportation tariffs. In essence, tariffs reflect the allowable return on asset values. Net Debt/Equity (x) 0.1 0.0 FCFPS (RM) 0.52 0.81 WACC Reduction Likely Preludes Lower Returns. We believe there is downside risk for tariffs as the allowable return is likely based on Pet Gas’ current cost of capital. Recall that the group’s existing 2014 Gas Transmission Agreement (GTA) (Figure 1) was based on WACC of 9.2%. Whereas current WACC has now reduced to 7.8%. This was due to lower market beta, coupled with procurement of low-cost debt (USD500mn loan from Mizuho Bank Ltd; average rate: 1.3%). Furthermore, regulated returns for other utility providers (i.e. Tenaga and Gas Malaysia) whom are subject to Incentive Based Regulation (IBR), are lower at 7.5%-8.0%. Share Performance (%) P/CFPS (x) 36.9 23.9 ROE (%) 13.8 15.1 ROA (%) 10.2 11.2 NTA/Share (RM) 6.4 6.7 Price/NTA (x) 3.0 2.9 Price Change PTG FBM KLCI 1 mth (2.5) (0.6) 3 mth (3.1) 4.3 6 mth (10.7) 4.9 12 mth (12.7) 0.3 (12-Mth) Share Price relative to the FBM KLCI Figure 1: GTA Tariffs Postage Area Fee/ Postage Tariff (RM/GJ) Peninsular 1.248 Miri 1.857 Bintulu 1.147 Source: Bloomberg Source: Company, TA Research Page 1 of 7
15. TA Securities 18-Apr-17 A Member of the TA Group Valuation Method for Pipelines Should be Status Quo . Whereas for determination of asset values, Pet Gas and EC are currently exploring two valuation methodologies, namely Net Book Value (NBV) or Depreciated Replacement Cost (DRC). To recap, DRC is the current cost of building assets, after accounting for its residual life. Given that the existing GTA uses DRC, we believe there is high likelihood this will remain status quo. Furthermore, Pet Gas’ pipeline assets are aged, with estimated remaining useful life of 30 years (lifespan: ~55 years). Recall that DRC is typically used to value older pipelines, as in the case of UK, Netherlands, and Australia. Regasification Assets Likely to Apply NBV. If NBV is applied, there will be significant erosion to Pet Gas’ transmission returns. This is because DRC valuation translates to circa 2.5x NBV. On the other hand, Pet Gas is agreeable to the use of NBV for valuation of its regasification assets, which are new. They include Sg Udang Regasification Terminal (RGT1) (completion: 2013) and the upcoming Pengerang RGT (RGT2) (target completion: 4Q17). Meanwhile, RGT2 is in the final stages of crystalizing its Regasification Sales Agreement (RSA) with Petronas. The new RSA terms will largely mirror that of RGT1 (Figure 2). Figure 2: Regasification Tariffs for Sg. Udang RGT Source: Company 15% Topline Erosion Under Black Skies. In the black skies scenario, we estimate topline erosion of 15% post-TPA tariff revision. Our underlying assumptions include:- 1) NBV valuation is used, 2) regasification revenues remain status quo, 3) NBV of transmission assets amount to RM2.5bn, and 4) 7.8% WACC. Correspondingly, we estimate reduction in net profit by 13% in FY18-19, which would result in lower SOP target price of RM17.12 (-10%). Capacities Remain Fully Underwritten. On the bright side, according to management, there will be no capacity risk for Pet Gas after TPA. As per current arrangement, capacity for both pipelines and regasification facilities will be fully-underwritten. Recall that under existing agreements, 100% capacity is leased out to Petronas regardless of utilization. Nevertheless, following TPA, management does not discount the possibility that some capacity may be assigned to other users. They may include customers such as Tenaga Nasional, Gas Malaysia, and independent power producers (IPPs). Therefore, the burden of underwriting capacity may be partially shifted from Petronas to other users. Page 2 of 7
16. TA Securities 18-Apr-17 A Member of the TA Group Guaranteed Offtake Mitigates Risk of Lower Demand . To justify its premium valuations, we believe it is important that Pet Gas is assured full capacity offtake, which limits earnings risks. This is particularly true for RGT capacities, which risk underutilization due to the shift in Malaysian power generation mix from gas to coal (Figure 3). Recall that the power sector drives the lion’s share of local gas demand. Due to the progressive gas subsidy withdrawal, the share of gas generation mix will decrease from 49% to 29% in 2015-20. Correspondingly, gas consumption in Malaysia is expected to decrease by 305 mmscfd (-23%) to 980mmscfd in 2015-20. Furthermore, we understand that RGT1’s utilization in 2016 was well below 50% due to LNG’s significant price premium over subsidized gas (Figure 4). Figure 3: Energy Generation Mix Figure 4: Regulated Gas and LNG Price in 2014-15 Source: Energy Commission Source: Energy Commission High Barriers of Entry for New Players. We do not discount the possibility that new licensed gas transportation players may emerge in future. They may include new gas suppliers or infrastructure companies with the financial capacity to build a new extensive network. However, the hefty cost of constructing a nationwide network may render it commercially unfeasible for new market entrants. Recall that Pet Gas’ PGU (Peninsular Gas Utilization) pipelines (Figure 5) in West Malaysia spans 2,550km with capacity of 3,000 mmscfd. We estimate that the current cost for building a network similar in size to Pet Gas’ would exceed RM9.0bn. Additionally, there would also be costs and hurdles related to land acquisition, including compensation and regulatory approvals. Page 3 of 7
17. TA Securities 18-Apr-17 A Member of the TA Group Figure 5 : PGU Network Source: Energy Commission Entrenched with Strong Grip on Monopoly. As such, we believe it is likely that Pet Gas’ entrenched market leadership and monopoly will remain status quo in the near-to-medium term. Nevertheless, for a start, new entrants could target areas where Pet Gas does not have network reach. Alternatively, they could also build shorter last mile connections that link to Pet Gas’ network. Whilst the group may be reluctant to lease out capacity to competitors, we believe it is the government’s intent for full market liberalization. This is based on EC’s general concept of TPA, where ‘other parties are able to utilize without discrimination the three major gas infrastructures in Malaysia, irrespective of ownership’. (II) PENGERANG PROJECTS Possible New Projects in Pengerang. In our view, it is possible that Pet Gas may participate in associated facilities (Figure 6) currently developed by parent Petronas at Pengerang Integrated Complex (PIC). They include:- 1) PRPC (Utilities and Facilities Sdn Bhd), 2) PCP (Cogeneration Plant), and 3) PAMER (Projek Air Mentah). We believe they are a strategic fit for the group, given Pet Gas’ track record and expertise in such projects. Additionally, these assets do not fit into Petronas’ core business (which is ownership of Malaysian petroleum resources). To recap, out of the six facilities under construction, Pet Gas is currently developing two projects. They comprise of the RM2.7bn RGT2 (65% stake) and USD172mn ASU (Air Separation Unit) (51% stake). Page 4 of 7
18. TA Securities 18-Apr-17 A Member of the TA Group Figure 6 : Associated Facilities at Pengerang Integrated Complex Source: Company Balance Sheet Ready to Invest. To recap, Pet Gas’ sister company, Petronas Chemicals, took over Petronas’ USD3.1bn RAPID petrochemical complex in Nov15. Whereas PIC’s liquid bulk terminal (SPV2) is spearheaded by Dialog Group. If Petronas disposes the other PIC projects to private sector companies, we expect its timing to be in 2018-19. This is to accommodate RAPID’s launch by end-19. Given the scenario that Pet Gas takes over, it would be a much anticipated earnings growth catalyst. Furthermore, the group has ample capacity to undertake new projects, underpinned by:- 1) underleveraged balance sheet (net gearing: 0.06x, cash: RM1.7bn), and 2) robust cash flows (2017E-19F average FCFF: RM1.5bn p.a). Impact We incorporate the following:- 1) contribution from RGT2 (start: FY18), 2) audited figures for FY16, 3) higher consensus earnings estimates for Gas Malaysia, 4) lower interest costs, and 5) higher taxes in FY17. Correspondingly, our FY17/18/19 forecasts are revised by -1%/11%/14%. For our SOP valuation, we effect the following changes:- 1) tweaked WACC to 7.8% (previous: 7.4%), 2) raised Gas Malaysia consensus TP to RM3.04, and 3) removed RGT2 contribution, and 4) incorporated ASU valuation. Following this, our target price is lowered to RM19.02 (previous: RM19.64). Valuation We maintain Sell on Pet Gas (TP: RM19.02), mainly due to downside risk on asset returns post-TPA and lofty valuations. The stock is currently trading at:- 1) 2SD above historical forward P/E average, and 2) 1SD above historical forward P/B average. Page 5 of 7
19. TA Securities 18-Apr-17 A Member of the TA Group Figure 7 : SOP Valuation SOP Valuation Co r e Op erat io n s* Pen geran g ASU Gas Malaysia (14.8% St ake) Net Cash / (Deb t ) Total *excluding contribution from ASU Equity Value EV/Share (RM mn) (RM) 37,739.6 19.07 332.7 0.17 295.7 0.15 (730.0) (0.37) 37,637.9 19.02 % of Total 100% 1% 1% -2% Basis NPV b ased o n DCF (WACC: 7.8%, Term in al Gro w t h : 3%) Pro ject NPV (25 year s, St ar t 2019, Pro ject IRR: 15%) Co n sen sus m arket value As at en d -2017E Figure 8: Historical Forward P/E Average Figure 9: Historical Forward P/B Average Page 6 of 7
20. TA Securities 18-Apr-17 A Member of the TA Group EARNINGS SUMMARY Income Statement FYE 31 Dec (RMmn) Revenue EBITDA Depreciation Net finance cost Associates & JVs Exceptionals Pretax profit Taxation MI Net Profit Core Net Profit Per Share Data Core EPS DPS Book Value Net Tang Asset 2015 4,456.0 2,976.0 (776.8) (58.3) 75.2 (194.0) 2,022.1 (16.2) (1.6) 2,004.3 2,198.3 2016 4,561.3 2,954.5 (877.1) (39.7) 63.6 5.5 2,106.8 (370.5) (2.8) 1,733.6 1,728.1 2017E 4,581.7 3,127.5 (959.6) (53.3) 71.2 0.0 2,185.8 (437.2) (2.8) 1,745.9 1,745.9 2018F 5,267.3 3,493.5 (995.3) (60.8) 71.7 0.0 2,509.1 (501.8) (3.2) 2,004.1 2,004.1 2019F 5,302.8 3,520.9 (1,008.8) (56.2) 72.0 0.0 2,527.8 (505.6) (3.2) 2,019.1 2,019.1 Balance Sheet FYE 31 Dec (RMmn) Fixed assets Associates & JCEs Deferred Tax Others Non-Current Assets 2015 11,323.8 675.7 456.4 4.5 12,460.4 2016 12,807.5 736.2 408.0 52.6 14,004.3 2017E 13,567.9 771.7 408.0 52.6 14,800.3 2018F 14,072.7 807.6 408.0 52.6 15,340.8 2019F 14,263.8 843.6 408.0 52.6 15,568.0 Inventories Trade and other rcvb Cash and Deposits Others Current Assets 46.4 644.4 1,230.8 0.0 1,921.6 68.5 711.9 1,763.1 5.9 2,549.4 69.1 702.6 1,619.4 5.9 2,397.0 79.9 793.2 1,749.4 5.9 2,628.3 80.8 784.1 2,161.9 5.9 3,032.6 14,382.0 16,553.6 17,197.2 17,969.2 18,600.6 Borrowings Deferred Tax Others Non-current Liabilities 1,029.6 922.6 6.9 1,959.0 2,216.9 1,131.0 5.9 3,353.8 2,255.5 1,131.0 5.9 3,392.4 2,255.5 1,131.0 5.9 3,392.4 2,255.5 1,131.0 5.9 3,392.4 Borrowings Trade & other Payables Others Current Liabilities 28.7 796.5 2.8 828.0 32.6 1,006.0 0.0 1,038.6 94.0 1,023.1 0.0 1,117.1 94.0 1,190.6 0.0 1,284.6 94.0 1,213.1 0.0 1,307.1 2,787.1 4,392.4 4,509.4 4,677.0 4,699.5 Share capital Reserves Minority Interests Equity 1,978.7 9,460.1 156.1 11,594.9 1,978.7 9,988.0 194.5 12,161.2 1,978.7 10,511.8 197.2 12,687.8 1,978.7 11,113.0 200.4 13,292.2 1,978.7 11,718.8 203.6 13,901.1 Total Equity + Liabilities 14,382.0 16,553.6 17,197.2 17,969.2 18,600.6 Total Assets (sen) (sen) (RM) (RM) 111.1 60.0 5.9 5.9 87.3 62.0 6.1 6.1 88.2 61.7 6.4 6.4 101.2 70.9 6.7 6.7 102.0 71.4 7.0 7.0 2015 2016 2017E 2018F 2019F Ratios FYE 31 Dec Valuations Core PER Dividend yield EV/EBITDA P/BV P/NTA FCF Yield (x) (%) (x) (x) (x) (%) 19.0 3.1 12.8 3.3 3.3 5.0 22.0 3.2 13.1 3.1 3.1 2.1 21.9 3.2 12.5 3.0 3.0 2.7 19.0 3.7 11.2 2.9 2.9 4.2 18.9 3.7 11.0 2.7 2.7 4.9 Profitability ratios EBITDA margin EBIT margin PBT margin Core Net margin ROE ROA (%) (%) (%) (%) (%) (%) 66.8 49.4 45.4 49.3 19.0 13.9 64.8 45.5 46.2 37.9 14.2 10.5 68.3 47.3 47.7 38.1 13.8 10.2 66.3 47.4 47.6 38.0 15.1 11.2 66.4 47.4 47.7 38.1 14.5 10.9 Liquidity ratios Current ratio Quick ratio (x) (x) Leverage ratios Total Debt/ Assets Total Debt/Equity Net (debt)cash/ Equity Interest coverage (x) (x) (x) (x) 0.1 0.1 Net Cash 24.4 Growth ratios Revenue EBITDA PBT Core Net Profit Core EPS (%) (%) (%) (%) (%) 1.5 1.1 (14.1) 16.1 8.9 2.3 2.3 2.5 2.4 2.1 2.1 2.0 2.0 2.3 2.3 0.1 0.2 0.0 22.1 0.1 0.2 0.1 18.9 0.1 0.2 0.0 21.3 0.1 0.2 0.0 21.4 2.4 (0.7) 4.2 (21.4) (13.6) 0.4 5.9 3.8 1.0 0.7 15.0 11.7 14.8 14.8 14.8 0.7 0.8 0.7 0.7 0.7 Total Liabilities FYE 31 Dec (RMmn) Cash Flow Statement Pretax profit Depreciation Net Interest Associates & JVs Working Cap Changes Income Tax Paid Others CF from Operations 2015 2016 2017E 2018F 2019F 2,022.1 776.8 58.3 (75.2) 89.7 (16.2) (41.6) 2,845.6 2,106.8 877.1 39.7 (63.6) 119.8 (370.5) (2.5) 2,761.0 2,185.8 959.6 53.3 (71.2) 25.8 (437.2) 0.0 2,777.8 2,509.1 995.3 60.8 (71.7) 66.1 (501.8) 0.0 3,114.4 2,527.8 1,008.8 56.2 (72.0) 30.8 (505.6) 0.0 3,107.4 Capex Dividends from Assoc Others CF from Investing (1,169.4) 29.2 52.5 (1,087.7) (1,954.6) 31.7 (67.2) (1,990.1) (1,720.0) 35.6 0.0 (1,684.4) (1,500.0) 35.9 0.0 (1,464.1) (1,200.0) 36.0 0.0 (1,164.0) Dividends Net Change in debt Interest Paid Others CF from Financing (1,187.2) 168.7 (90.1) (56.2) (1,164.8) (1,187.2) 1,032.4 (114.2) 30.0 (239.0) (1,222.1) 100.0 (115.0) 0.0 (1,237.1) (1,402.9) 0.0 (117.5) 0.0 (1,520.3) (1,413.3) 0.0 (117.5) 0.0 (1,530.8) Net Cash Flow Beginning Cash Ending Cash 593.1 637.7 1,230.8 531.9 1,230.8 1,762.7 (143.7) 1,763.1 1,619.4 129.9 1,619.4 1,749.4 412.5 1,749.4 2,161.9 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 7 of 7
21. Tuesday , 18 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
22. T e c h n i c a l TA Securities V i e w Tuesday , April 18, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Technical Stock Picks Malaysia FBM KLCI: 1,733.93 (+2.94, +0.17%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 17-Apr 1733.93 2.78 3.96 4.88 5.08 5.45 5.10 5.10 9.26 5.50 6.04 4.42 1.22 6.43 9.02 1.19 5.10 9.28 13.70 6.42 4.09 3.04 0.40 0.78 0.45 4.30 1.78 1.48 1.29 1.66 2.96 2.25 1.33 1.05 1.67 1.56 1.97 1.84 1.20 0.89 2.01 Change 2.94 0.00 0.01 0.03 0.02 0.07 0.00 0.00 0.01 -0.13 0.00 0.02 -0.01 0.01 0.07 0.04 0.04 0.01 0.00 0.02 0.03 -0.01 0.01 0.00 0.01 0.00 0.00 0.00 0.03 0.00 0.03 0.03 -0.01 0.00 0.04 -0.02 -0.02 0.00 0.01 -0.01 0.05 Tel: +603-2167-9607 High Low 1,736.29 1,729.13 2.80 3.99 4.88 5.09 5.48 5.13 5.11 9.30 5.63 6.06 4.43 1.23 6.44 9.02 1.19 5.13 9.29 13.78 6.44 4.10 3.06 0.40 0.78 0.45 4.31 1.80 1.49 1.30 1.66 3.03 2.25 1.35 1.07 1.68 1.57 2.03 1.84 1.22 0.90 2.01 2.78 3.93 4.84 5.02 5.37 5.08 5.07 9.24 5.50 6.00 4.38 1.21 6.41 8.92 1.15 5.08 9.23 13.68 6.39 4.05 3.02 0.39 0.77 0.44 4.24 1.78 1.45 1.25 1.65 2.91 2.22 1.33 1.03 1.61 1.55 1.96 1.83 1.18 0.89 1.95 Bollinger Bands Lower Mid Upper 1,731.42 1,743.80 1,756.18 2.79 3.94 4.73 4.94 5.37 5.07 5.05 9.17 5.39 5.97 4.40 1.15 6.35 8.92 1.16 5.06 9.21 13.68 6.33 3.95 2.82 0.39 0.72 0.43 4.23 1.66 1.46 1.23 1.66 2.43 2.18 1.19 0.90 1.59 1.47 1.78 1.73 1.20 0.87 1.78 2.86 4.06 4.85 5.06 5.53 5.12 5.19 9.52 5.56 6.01 4.61 1.22 6.41 8.97 1.24 5.22 9.33 13.73 6.39 4.05 3.02 0.40 0.77 0.45 4.30 1.77 1.51 1.28 1.68 2.82 2.22 1.29 1.05 1.69 1.55 1.94 1.81 1.26 0.89 1.96 2.92 4.18 4.97 5.18 5.69 5.17 5.33 9.88 5.74 6.06 4.82 1.29 6.47 9.03 1.31 5.38 9.46 13.78 6.45 4.14 3.22 0.41 0.81 0.46 4.36 1.88 1.56 1.33 1.70 3.21 2.27 1.38 1.20 1.78 1.63 2.11 1.88 1.33 0.91 2.15 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 48.85 1,739.57 1,738.62 1,724.74 DMI DI + DI - ADX 22.28 21.84 25.81 42.18 41.81 53.92 55.41 49.73 48.84 46.82 44.18 50.75 52.82 31.83 48.20 56.05 62.87 45.11 43.31 51.38 48.40 60.72 55.23 56.51 47.02 57.15 48.64 53.82 54.91 42.48 54.90 41.73 67.53 56.18 58.98 53.34 53.81 48.80 52.43 61.66 42.48 49.22 56.64 15.18 11.15 19.94 25.96 23.24 16.20 16.84 15.56 23.27 25.55 11.28 21.77 14.86 21.67 15.52 14.85 16.29 18.36 22.91 22.07 20.44 13.58 25.18 26.08 14.43 25.44 18.16 29.09 15.53 38.60 26.93 35.12 33.24 29.40 27.44 25.05 20.18 15.41 28.83 19.89 2.85 4.03 4.87 5.07 5.47 5.10 5.15 9.38 5.54 6.03 4.53 1.25 6.40 8.98 1.22 5.18 9.31 13.72 6.39 4.07 3.06 0.40 0.79 0.45 4.31 1.81 1.50 1.30 1.67 2.98 2.24 1.33 1.12 1.71 1.59 2.02 1.84 1.25 0.89 2.04 2.86 4.06 4.87 4.96 5.51 5.12 5.14 9.53 5.50 5.99 4.64 1.21 6.41 8.92 1.22 5.22 9.28 13.73 6.37 4.00 2.97 0.40 0.75 0.45 4.26 1.73 1.51 1.27 1.69 2.66 2.22 1.28 1.00 1.63 1.55 1.93 1.78 1.25 0.88 1.93 2.73 3.99 4.78 4.89 5.35 5.09 5.06 9.26 5.36 6.04 4.65 1.22 6.39 8.74 1.19 5.14 9.21 13.65 6.28 4.03 2.85 0.40 0.73 0.45 4.24 1.68 1.51 1.21 1.69 2.05 2.21 1.30 0.96 1.56 1.58 1.91 1.76 1.21 0.89 1.91 24.79 25.06 18.30 17.73 23.47 19.48 20.16 19.16 17.14 16.60 32.13 17.88 14.72 16.79 28.07 25.41 21.57 17.28 16.32 21.32 13.80 15.38 15.29 17.52 22.48 18.64 17.55 18.54 27.90 17.85 18.75 22.20 20.73 18.67 16.93 21.76 12.12 21.86 18.20 23.39 30.87 24.41 17.34 22.37 26.72 17.93 15.25 30.67 27.87 15.49 22.72 29.00 9.89 18.07 30.59 17.51 11.23 16.28 25.34 20.91 30.02 16.19 31.46 25.87 13.15 42.52 26.57 37.82 14.49 49.40 22.69 26.24 41.45 52.47 25.45 23.71 30.94 32.23 23.59 18.95 www.taonline.com.my Diff 0.44 (9.61) (13.91) 1.64 8.22 (0.23) (3.28) (3.32) (3.60) 6.12 8.95 (20.85) 3.90 0.14 4.88 (12.56) (10.55) (5.28) 1.08 6.59 0.75 6.64 (1.80) 8.56 (8.05) 6.80 6.80 0.61 10.55 (12.37) 20.75 8.18 12.92 12.51 10.73 10.51 3.28 8.05 (6.45) 10.63 (3.51) Line 3.04 0.02 -0.01 0.02 0.07 0.01 0.00 0.01 -0.01 0.06 0.00 -0.06 0.00 0.01 0.06 0.00 -0.01 0.03 0.01 0.03 0.01 0.06 0.00 0.02 0.00 0.03 0.04 0.00 0.02 -0.01 0.25 0.01 0.02 0.04 0.04 0.01 0.04 0.03 0.00 0.00 0.04 MACD Signal Diff 6.10 (3.057) 0.04 0.02 0.03 0.07 0.05 0.01 0.04 0.05 0.07 -0.01 -0.03 0.00 0.01 0.08 0.02 0.02 0.05 0.01 0.04 0.01 0.08 0.00 0.02 0.00 0.03 0.04 0.00 0.03 0.00 0.30 0.01 0.01 0.05 0.05 0.00 0.04 0.02 0.01 0.01 0.04 (0.021) (0.023) (0.002) (0.006) (0.034) (0.006) (0.023) (0.060) (0.013) 0.010 (0.029) (0.007) (0.003) (0.016) (0.015) (0.027) (0.020) (0.007) (0.007) 0.004 (0.015) (0.000) (0.001) 0.000 (0.003) (0.004) (0.007) (0.008) (0.003) (0.047) 0.000 0.009 (0.008) (0.015) 0.005 0.004 0.003 (0.014) (0.001) (0.004) DMI MACD Recent Signal BUY SELL DMI MACD Signal Change - SELL SELL BUY BUY SELL SELL SELL SELL BUY BUY SELL BUY BUY BUY SELL SELL SELL BUY BUY BUY BUY SELL BUY SELL BUY BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY SELL BUY BUY BUY BUY - SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL BUY BUY SELL SELL BUY BUY BUY SELL SELL SELL SELL BUY SELL - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
23. Technical Comments : Buy on Weakness MRCB & UEM Sunrise MRCB looks set for rebound with a successful climb above the mid Bollinger band (RM1.69) to re-test the 5/4/17 peak (RM1.80), while a confirmed breakout should aim for the 123.6%FP (RM1.98) ahead. Key supports are seen at the 23.6%FR (RM1.62) and 50day ma (RM1.56). UEM Sunrise is primed for oversold rebound towards the 23.6%FR (RM1.26), with a convincing breach to re-visit the 5/4/17 high (RM1.34), while a breakout should target the 123.6%FP (RM1.42) and 138.2%FP (RM1.47) going forward. Key chart supports are at the 50%FR (RM1.16) and 200-day ma (RM1.12). MRCB RM1.67 (+0.04) Upper Middle BOLLINGER BANDS RM RM 1.78 1.69 10-day 30-day Lower RM 1.59 50-day BUY Recent Signal DMI Recent Signal 1.56 SELL Signal Change UEM SUNRISE Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 1.71 RM 1.63 BOLLINGER BANDS RM RM RM DMI RM1.20 (+0.01) 1.33 1.26 1.20 SELL SIMPLE MOVING AVERAGES RM 1.25 RM 1.25 RM 1.21 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4
24. T e c h n i c a l TA Securities V i e w Tuesday , April 18, 2017 FBMKLCI: 1,733.93 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Stock Screen s Malaysia End Day Census of 17.04.2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas .The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/SELL) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name BORNEO OIL BHD TIGER SYNERGY BH LUSTER INDUSTRIE JAG BHD JKG LAND BHD NETX HOLDINGS BH VIZIONE HOLDINGS M3 TECHNOLOGIES HIBISCS STERLING PROGRES PRIVASIA TECHNOL DIGISTAR CORP MALAKOFF CORP BH DIALOG GROUP BHD MARCO HOLDINGS B SMTRACK BHD TANCO HLDGS BHD SCH GROUP BHD GADANG HLDGS BHD YTL CORP BHD XOX BHD BCM ALLIANCE B MEDIA PRIMA BHD RED SENA BHD WINTONI GROUP BH MNC WIRELESS BHD SANICHI TECHNOLO PROTASCO BHD DGB ASIA BHD AE MULTI HOLDING Price 0.19 0.06 0.13 0.12 0.13 0.04 0.13 0.08 0.44 0.21 0.19 0.22 1.22 1.78 0.17 0.07 0.12 0.26 1.29 1.50 0.11 0.21 1.18 0.45 0.05 0.08 0.09 1.10 0.06 0.19 RSI Bollinger Band Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.18 0.04 0.11 0.10 0.11 0.02 0.11 0.06 0.38 0.19 0.17 0.19 1.15 1.66 0.16 0.04 0.09 0.23 1.23 1.48 0.10 0.15 1.12 0.44 0.03 0.06 0.08 1.07 0.04 0.16 0.18 0.05 0.12 0.11 0.12 0.03 0.13 0.08 0.44 0.20 0.19 0.21 1.22 1.77 0.17 0.07 0.11 0.25 1.28 1.50 0.10 0.20 1.18 0.45 0.04 0.07 0.08 1.09 0.05 0.18 0.19 0.06 0.13 0.12 0.13 0.05 0.14 0.09 0.49 0.21 0.20 0.22 1.29 1.88 0.18 0.09 0.13 0.27 1.33 1.52 0.11 0.25 1.23 0.45 0.05 0.09 0.09 1.11 0.07 0.20 61.00 60.61 63.33 48.99 53.57 61.98 53.19 56.70 47.24 51.61 54.05 57.41 48.20 54.91 53.22 55.76 58.93 58.45 54.90 47.76 56.05 55.50 54.01 54.98 55.94 59.53 54.20 50.12 60.21 56.30 0.19 0.05 0.12 0.12 0.12 0.04 0.13 0.08 0.46 0.20 0.19 0.21 1.25 1.81 0.17 0.08 0.12 0.26 1.30 1.51 0.11 0.22 1.20 0.45 0.05 0.08 0.09 1.09 0.06 0.19 0.18 0.05 0.11 0.11 0.12 0.03 0.12 0.07 0.44 0.21 0.18 0.20 1.21 1.73 0.17 0.06 0.10 0.24 1.27 1.49 0.10 0.19 1.15 0.45 0.05 0.07 0.08 1.10 0.05 0.17 0.18 0.05 0.10 0.12 0.13 0.03 0.12 0.06 0.46 0.21 0.18 0.19 1.22 1.68 0.16 0.05 0.09 0.22 1.21 1.51 0.10 0.18 1.11 0.45 0.05 0.07 0.08 1.13 0.04 0.16 Vol 98,893,800 40,388,800 36,300,500 15,541,100 13,571,700 13,433,400 12,147,600 10,747,700 8,399,700 7,723,600 5,568,300 5,345,200 5,059,500 4,717,600 4,617,000 4,438,700 4,414,800 3,764,500 3,515,600 3,510,500 3,470,700 3,221,700 3,207,300 3,092,000 2,844,500 2,733,700 2,702,700 2,487,400 2,420,100 2,378,000 20-day avg vol 60,094,820 16,481,540 29,851,200 5,715,345 20,936,720 22,607,310 22,425,900 10,196,850 29,526,280 10,808,050 7,654,470 15,439,730 9,812,920 12,539,060 4,912,200 11,718,200 15,666,700 7,281,280 4,130,050 7,065,150 21,596,980 10,712,240 2,100,640 1,754,275 4,057,385 17,139,160 12,916,600 1,967,695 6,207,995 7,412,140 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The mediumterm trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2
25. TA Securities A Member of the TA Group *Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy breakout trades. [UPPER BOLLINGER BREAKOUT] Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/SELL guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Stock Name Price GSB GROUP BHD SMRT HOLDINGS BH HANDAL RESOURCES MENANG CORP BHD ANCOM LOGISTICS K-STAR SPORTS LT LTKM BHD SYF RESOURCES BH BTM RESOURCES SEACERA GROUP INDUSTRONICS BHD SHANGRI-LA HOTEL ANN JOO RESOURCE A & M REALTY BHD NAKAMICHI CORP SP SETIA BHD YNH PROPERTY BHD MESINIAGA BHD WARISAN TC HLDGS 0.14 0.21 0.33 0.91 0.14 0.09 1.36 0.62 0.35 1.01 0.29 5.24 2.89 1.68 0.20 3.67 1.62 1.17 2.10 1.18 SEG INTERNATIONA Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.08 0.16 0.25 0.76 0.10 0.06 1.24 0.55 0.28 0.90 0.22 5.00 2.22 1.30 0.09 3.38 1.47 1.03 1.70 1.03 0.10 0.18 0.28 0.82 0.11 0.07 1.29 0.57 0.31 0.95 0.25 5.11 2.53 1.49 0.14 3.52 1.55 1.10 1.89 1.10 0.13 0.21 0.31 0.89 0.13 0.08 1.33 0.60 0.34 0.99 0.29 5.22 2.83 1.67 0.19 3.65 1.62 1.17 2.08 1.16 77.53 67.94 69.48 75.08 79.22 67.71 66.56 64.30 71.08 65.65 78.75 57.66 70.86 77.74 66.60 69.98 65.09 63.11 62.77 70.72 0.11 0.19 0.28 0.84 0.12 0.07 1.29 0.57 0.32 0.95 0.27 5.12 2.64 1.57 0.15 3.55 1.58 1.09 1.95 1.12 0.10 0.18 0.27 0.82 0.11 0.07 1.30 0.58 0.30 0.95 0.23 5.12 2.55 1.45 0.14 3.48 1.54 1.11 1.88 1.09 0.10 0.18 0.26 0.81 0.10 0.06 1.31 0.60 0.30 0.95 0.21 5.15 2.55 1.39 0.14 3.45 1.53 1.08 1.89 1.10 Vol 54,554,500 16,509,000 5,905,500 8,208,000 9,314,600 5,697,400 142,700 12,722,400 6,744,600 10,080,500 1,603,500 115,000 2,504,700 774,800 40,900 5,971,900 430,000 10,000 1,500 465,500 20-day avg vol 4,995,730 1,686,390 665,720 1,097,435 1,654,320 1,155,425 31,065 2,842,720 1,711,540 2,736,865 581,295 48,555 1,144,635 366,040 21,580 3,844,100 332,545 7,970 1,270 480,185 *Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. p [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stock Name PETRONAS GAS BHD BATU KAWAN BHD GENTING PLANTATI UMS HLDGS BHD KECK SENG MALAYS HUME INDUSTRIES KUALA LUMPUR KEP PERSTIMA DATAPREP HLDGS EA TECHNIQUE M B KIM HIN IND MBM RESOURCES BERJAYA SPORTS UMS-NEIKEN GRP IVORY PROPERTIES HEXZA CORP BHD GABUNGAN AQRS HWA TAI INDUS EG INDUSTRIES BH AFFIN HLDGS Price 19.28 19.00 11.12 2.52 4.98 2.63 23.98 7.40 0.47 0.62 2.07 2.38 2.81 1.22 0.52 1.06 1.20 0.51 0.85 2.78 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 19.41 19.12 11.22 2.55 5.01 2.65 24.00 7.42 0.49 0.63 2.09 2.39 2.82 1.23 0.53 1.07 1.21 0.51 0.86 2.79 19.73 19.40 11.53 2.71 5.11 2.72 24.57 7.57 0.57 0.66 2.20 2.49 2.89 1.26 0.57 1.12 1.28 0.55 0.90 2.86 20.04 19.69 11.84 2.86 5.22 2.79 25.14 7.72 0.64 0.70 2.31 2.59 2.96 1.29 0.61 1.16 1.35 0.59 0.94 2.92 25.92 32.70 36.03 33.84 28.92 35.66 34.99 46.09 46.48 30.67 40.79 35.73 28.56 31.68 38.04 39.81 40.92 37.55 31.10 42.18 19.63 19.32 11.44 2.65 5.08 2.72 24.42 7.59 0.55 0.65 2.16 2.50 2.87 1.25 0.56 1.11 1.28 0.55 0.89 2.85 19.73 19.41 11.50 2.72 5.11 2.73 24.56 7.46 0.48 0.67 2.15 2.48 2.90 1.26 0.55 1.11 1.27 0.56 0.90 2.86 20.01 19.49 11.42 2.70 5.07 2.74 24.58 7.26 0.38 0.67 2.05 2.44 2.93 1.27 0.53 1.08 1.17 0.53 0.91 2.73 Vol 520,600 36,900 2,691,200 6,000 138,800 32,100 1,574,300 15,300 8,107,000 963,200 90,300 170,600 1,068,500 76,000 725,300 296,100 153,600 147,400 1,199,000 107,600 20-day avg vol 1,076,405 21,475 815,045 3,345 64,355 60,830 1,592,790 8,665 31,036,200 812,245 145,470 228,715 1,427,580 15,265 2,079,860 560,075 1,059,325 248,850 1,150,525 360,015 Raw data sourced from Bloomberg Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
26. Tuesday , 18 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED FOREIGN TECHNICAL REPORTS’ Asian Technical Reports 1. Foreign Technical Stock Watch (FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
27. T e c h n i c a l TA Securities V i e w Tuesday , April 18, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 • Foreign Technical Stock Watch FSSTI: 3,138.30 (-30.94, -0.98%) Singapore THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Stock Name FSSTI SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI YZJ Tel: +603-2167 9607 Close Bollinger Bands RSI Change High Low 17-Apr Lower Mid Upper 14d 3,138.30 (30.94) 3,160.14 3,136.93 3,121.74 3,163.78 3,205.82 44.86 3.75 18.90 9.59 21.65 64.65 3.43 7.72 3.64 1.08 6.85 7.49 10.17 2.34 0.18 10.20 41.15 3.41 44.93 0.36 3.70 1.91 2.00 3.12 1.81 2.61 2.83 3.66 0.48 1.13 (0.02) (0.19) (0.09) (0.24) (0.82) (0.08) (0.13) (0.04) (0.02) (0.06) (0.04) 0.00 (0.01) (0.00) (0.22) (0.35) (0.05) (0.69) (0.01) (0.05) (0.01) (0.01) (0.02) (0.04) (0.01) (0.06) (0.01) (0.02) (0.03) 3.77 19.04 9.67 21.84 65.45 3.50 7.83 3.67 1.10 6.91 7.56 10.21 2.36 0.18 10.39 41.65 3.46 45.52 0.37 3.75 1.92 2.00 3.15 1.85 2.62 2.87 3.67 0.50 1.16 3.74 18.87 9.57 21.58 64.57 3.43 7.71 3.62 1.08 6.84 7.47 10.07 2.33 0.18 10.18 41.14 3.40 44.92 0.36 3.69 1.89 1.99 3.10 1.80 2.58 2.82 3.65 0.47 1.12 3.78 18.62 9.48 21.58 64.11 3.46 7.08 3.61 0.96 6.73 7.45 9.95 2.14 0.18 10.12 39.46 3.45 43.69 0.36 3.60 1.85 1.93 3.10 1.82 2.47 2.83 3.65 0.49 1.10 3.90 19.07 9.64 21.90 65.73 3.53 7.54 3.68 1.03 6.87 7.63 10.14 2.29 0.19 10.33 41.43 3.54 45.02 0.38 3.69 1.91 1.97 3.15 1.87 2.58 2.87 3.68 0.51 1.14 4.01 19.52 9.80 22.22 67.35 3.60 8.00 3.74 1.10 7.00 7.81 10.33 2.44 0.20 10.53 43.40 3.63 46.34 0.40 3.77 1.98 2.01 3.21 1.92 2.68 2.92 3.71 0.54 1.17 26.17 44.96 46.91 43.84 45.74 34.54 63.93 48.14 67.69 50.27 40.20 54.13 65.81 36.07 50.00 51.55 34.92 51.41 30.74 53.76 41.04 64.53 41.75 42.74 58.85 43.62 44.95 26.64 52.39 stsoo@ta.com.my Moving Averages 10d 30d 50d DI + 3,174.57 3,156.20 3,133.86 18.76 DI 27.07 ADX 15.26 MACD DMI MACD DMI MACD Diff Line Signal Diff Recent Signal Signal Change (8.31) 11.03 15.73 (4.708) SELL SELL - 3.87 19.15 9.68 21.96 65.62 3.52 7.72 3.69 1.06 6.89 7.63 10.21 2.32 0.19 10.33 41.69 3.52 45.46 0.37 3.68 1.94 1.98 3.15 1.86 2.62 2.87 3.68 0.51 1.15 31.77 28.24 24.28 24.25 21.95 25.63 7.79 16.81 10.69 22.15 21.09 18.79 12.42 26.55 21.99 15.04 33.58 16.70 24.94 18.89 23.92 11.62 24.13 29.71 15.55 25.97 13.58 38.10 12.78 16.32 10.85 11.67 18.93 14.83 24.40 47.48 19.76 32.30 17.45 14.96 11.51 41.15 25.63 31.35 35.10 23.64 16.99 22.65 17.35 21.35 24.93 11.47 25.95 18.88 11.69 18.39 18.68 43.58 (18.95) (6.07) (6.13) (6.96) (5.75) (15.17) 22.10 (0.30) 20.01 2.57 (2.40) (2.07) 24.82 (14.65) 4.09 10.77 (17.39) 5.43 (13.73) 8.32 (10.20) 9.64 (6.71) (3.65) 4.04 (7.50) (1.84) (27.65) 9.31 3.91 19.08 9.62 21.79 65.66 3.55 7.37 3.67 1.02 6.86 7.59 10.08 2.23 0.20 10.25 40.80 3.53 44.76 0.38 3.68 1.93 1.96 3.18 1.89 2.56 2.87 3.68 0.52 1.13 3.92 18.94 9.60 21.55 64.84 3.66 7.16 3.61 1.00 6.78 7.58 10.00 2.18 0.21 9.93 39.83 3.51 43.76 0.39 3.62 1.98 1.96 3.18 1.78 2.52 2.85 3.67 0.53 1.05 12.82 22.17 18.15 17.29 16.21 10.46 29.89 16.52 30.70 24.72 18.69 16.71 37.23 11.90 26.08 25.81 16.19 22.14 11.21 27.21 13.72 21.26 17.42 26.07 19.59 18.47 11.73 10.44 22.10 DMI www.taonline.com.my -0.03 0.05 0.02 0.09 0.21 -0.04 0.19 0.02 0.02 0.04 0.00 0.06 0.05 -0.01 0.11 0.55 -0.01 0.51 -0.01 0.02 -0.01 0.01 -0.01 0.01 0.03 0.00 0.00 -0.01 0.03 -0.01 0.08 0.04 0.14 0.36 -0.04 0.19 0.03 0.02 0.04 0.02 0.06 0.05 -0.01 0.15 0.71 0.00 0.55 -0.01 0.02 -0.01 0.01 -0.01 0.02 0.03 0.00 0.01 -0.01 0.03 (0.018) (0.031) (0.012) (0.048) (0.146) (0.001) 0.002 (0.010) 0.007 (0.008) (0.025) (0.005) (0.003) (0.000) (0.032) (0.163) (0.016) (0.037) (0.001) (0.001) 0.004 0.005 (0.003) (0.013) (0.000) (0.002) (0.005) (0.004) (0.008) SELL SELL SELL SELL SELL SELL BUY SELL BUY BUY SELL SELL BUY SELL BUY BUY SELL BUY SELL BUY SELL BUY SELL SELL BUY SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL BUY SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL - SELL SELL SELL SELL - The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 3
28. Corporate News : Genting Singapore Plc is focusing on the premium-mass and mass-market segment to offset a retreat by Chinese high rollers and to help spur a revenue recovery and stabilize profit. The casino operator’s focus on cost savings, a reduction of its VIP business and lowering of bad-debt provisions through tighter lending rules will also help support 2017 earnings. – Bloomberg. Technical Comments: The overbought RSI and daily stochastic indicators on Genting S’pore after the recent rally point to higher probability for profit-taking correction towards SGD1.02 to SGD1.00, the respective 30 and 50-day moving averages, with stronger support at SGD0.97, the 100-day ma. Immediate overhead hurdles are at the 12/4/17 high (SGD1.10) and 123.6%FP (SGD1.13). GENTING S’PORE SGD1.08 (-0.015) \\ Upper Middle Lower Recent Signal Signal Change BOLLINGER BANDS SGD SGD SGD DMI 1.10 1.03 0.96 BUY SIMPLE MOVING AVERAGES SGD 1.06 SGD 1.02 SGD 1.00 DAILY MACD Recent Signal BUY Signal Change 10-day 30-day 50-day Page 2 of 3
29. INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker ST DBS OCBC UOB JM WIL HKL CAPL GENS KEP SGX SIA FNN NOBL CIT JS SPH JCNC GGR STE OLAM CT SCI SMM CD STH SIE IFAR SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI 3.75 4.21 18.90 9.59 21.65 21.18 -2% 1.9 2.1 11.2 10.4 3.4 3.4 22.15 17.41 6.13 64.65 63.99 -0.01 4.1 4.4 15.8 14.7 2.4 2.6 67.27 52.42 17.01 3.43 3.86 11% 0.2 0.2 12.5 11.7 2.1 2.2 4.00 2.96 -4.46 7.72 7.43 -4% 0.4 0.4 19.6 19.0 2.5 2.6 7.88 5.79 21.96 3.64 4.08 11% 0.2 0.2 17.3 17.8 2.8 2.9 3.79 2.85 20.53 1.08 1.06 -2% 0.0 0.0 30.9 28.4 2.7 2.8 1.10 0.69 19.34 6.85 7.03 3% 0.5 0.6 13.5 12.4 3.2 3.5 7.23 5.10 18.31 7.49 7.98 6% 0.3 0.4 22.4 20.7 3.9 4.3 8.05 6.96 4.61 10.17 9.76 -4% 0.4 0.4 23.0 23.5 3.5 2.7 11.67 9.60 5.17 2.34 2.19 -7% 0.1 0.1 30.4 30.8 1.8 1.9 2.41 1.92 11.96 YZJSGD SP YZJ % upside 2017 2018 2017 2018 2017 2018 High Low YTD 11% 0.2 0.3 15.5 14.6 4.7 4.9 4.36 3.59 2.74 19.44 3% 1.794 1.963 10.5 9.6 3.3 3.4 19.42 14.63 9.00 9.57 0% 0.9 0.9 11.2 10.2 3.8 4.0 9.78 8.21 7.51 0.18 0.22 0.18 0.0 0.0 8.6 5.9 0.0 0.0 0.36 0.11 5.88 10.20 10.88 6% 0.6 0.7 16.1 14.8 1.5 1.5 10.65 7.86 23.19 41.15 41.25 0% 2.8 3.0 14.9 13.9 0.8 0.8 43.78 27.35 23.95 3.41 3.19 -7% 0.1 0.2 22.9 22.6 4.9 4.8 4.13 3.40 -3.40 44.93 50.63 11% 2.2 2.5 14.5 13.1 1.9 2.1 46.38 31.60 8.97 0.36 0.38 8% 0.0 0.0 15.9 14.1 2.0 2.3 0.45 0.33 -17.44 3.70 3.68 0% 0.2 0.2 21.4 20.3 4.2 4.3 3.78 3.01 14.55 1.91 1.99 5% 0.1 0.1 14.1 13.6 2.5 2.6 2.17 1.58 -3.30 2.00 2.13 6% 0.1 0.1 17.5 17.1 5.5 5.5 2.25 1.87 6.10 3.12 3.59 13% 0.2 0.3 13.1 10.8 2.9 3.3 3.38 2.44 9.47 1.81 1.72 -5% 0.1 0.1 34.2 26.2 1.5 1.8 2.09 1.22 31.16 2.61 2.94 11% 0.2 0.2 16.6 16.0 4.2 4.6 3.02 2.37 5.67 2.83 2.61 -9% 0.2 0.2 17.5 18.4 5.7 5.6 3.97 2.73 0.71 3.66 3.55 -3% 0.2 0.2 23.8 23.6 4.2 4.0 3.91 3.35 8.61 0.48 0.59 19% 427 500 10.6 9.0 15588 17442 0.60 0.44 -9.52 1.13 1.07 -5% 0.5 0.5 11.4 12.0 17.3 17.3 1.19 0.71 38.04 Note : The above data based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3