Bursa Malaysia Daily Market Report - 19 December

Transcription

1. Tuesday , 19 December, 2017 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . Be r j a y a S p o rt s T o t o B e rh a d : E x c e l le n t Y ie ld Pl a y 2 . C h in H in Be rh a d : E x p a n din g i t s I B S F o o tp r in t 3 . U n it e d M a la c c a Be rh a d : U n e x c i tin g N e a r T e r m O u t lo o k Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks (L o ca l) 2. D ai l y St o ck S cr een Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
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Daily Market Commentary Tuesday , 19 December 2017 For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my Review & Outlook KLSE Market Statistics (18.12.2017) (mil) Main Market 1,363.3 Warrants 180.9 ACE Market 829.0 Bond 27.9 ETF 1.3 LEAP 0.0 Total 2,402.4 Off Market 115.4 Volume +/-chg (RMmn) -332.6 1,954.7 1.8 36.5 376.7 166.2 17.5 6.5 1.02 1.5 0.00 0.0 2,165.3 40.9 256.4 Value Value/ +/-chg Volume -1429.6 1.43 9.4 0.20 70.7 0.20 4.0 0.23 1.11 1.18 0.00 0.00 0.90 215.7 2.22 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP December 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 1,751.64 12,570.82 16,777.67 1,750.00 24,792.20 6,994.76 7,537.01 22,901.77 2,481.88 29,050.41 3,414.82 1,723.71 6,133.96 3,267.92 1,889.13 6,038.93 -1.43 -18.02 -25.01 0.50 Up Down 254 319 100 97 39 52 4 5 3 4 0 0 400 477 % chg % YTD chg -0.08 -0.14 -0.15 0.03 6.69 9.63 14.01 7.00 140.46 0.57 25.45 58.18 0.84 29.94 46.44 0.62 5.52 348.55 1.55 19.81 -0.19 -0.01 22.47 202.30 0.70 32.04 -2.12 -0.06 18.54 6.02 0.35 11.72 14.54 0.24 15.81 1.79 0.05 5.29 -12.07 -0.63 -4.06 41.96 0.70 6.59 Top 10 KLCI Movers Based on Mkt Cap. The FBM KLCI edge lower on Monday, as mild profit taking activity on selected blue chips weighed on the market, ignoring regional strength on expectations U.S. lawmakers will pass the long-awaited U.S. tax cuts aimed at boosting growth in the world's largest economy. The KLCI fell 1.43 points to settle at 1,751.64, off a high of 1,755.20 and low of 1,747.62, as losers beat gainers 477 to 400 on cautious turnover totaling 2.40bn shares worth RM2.16bn. Further improvement in the external market environment and strong buying momentum would be essential to cushion the local market during the current window dressing period. As for the index, it will need to sustain above the key 200-day moving average resistance, currently at 1,755, to enhance upside momentum and enable challenge of stronger upside hurdles from 1,765 and 1,782, with the double-top peak of 1,793 and 1,796 acting as major resistance. On the downside, immediate support is seen at 1,737, the 50-day ma level, followed by 1,729, the 30-day ma, while crucial support will be the 5 Dec pivot low of 1,708. Any further rally on Maybank towards the 138.2%FP (RM9.85), with strong resistance seen at 150%FP (RM10.05), should encourage profittaking and selling as overbought condition will be exaggerated, while key chart support are at 30-day ma (RM9.24) and lower Bollinger band (RM9.07). Likewise, further gains on RHB Bank will be attractive to take profits, especially towards high of 20/03/17 (RM5.40) and the peak of 03/ 05/17 (RM5.59), while key chart supports are at RM4.92 and RM4.72, the respective 61.8% and 50%, Fibonacci Retracement levels. News Bites • Singapore tycoon Peter Lim is injecting his healthcare assets, comprising 100% of Thomson Medical Pte Ltd and 70.36% of TMC Life Sciences Bhd, into his real estate company Rowsley Ltd. • Chin Hin Group Bhd's indirect wholly-owned subsidiary Metex Modular Sdn Bhd will construct an integrated workers complex with comprehensive facilities in Pengerang, Johor, for RM238.3mn. • Econpile Holdings Bhd, via its subsidiary Econpile (M) Sdn Bhd, has secured a RM32.8mn contract from Majestic Maxim Sdn Bhd, to undertake piling and related works for a mixed development in Kuala Lumpur. • TH Heavy Engineering Bhd received 94.5% approval from its creditors for the Scheme of Arrangement pursuant to Section 366 of the Companies Act 2016. • Ekovest Bhd has issued a takeover notice to buy a 62% stake in Iskandar Waterfront City Bhd at RM1.50 per share, via a cash deal or a one-forOff Market one share swap deal to take the latter private. • Axiata Group Bhd's unit, Dialog Axiata Plc, has bright prospects to (mn) (RM) Counter Mkt Cap. Chg Vol. increase its investment by another USD300mn in Sri Lanka as its licence (RM’mn) (RM) (mn) BIMB 38.3 @ 4.40 issue is being resolved. MAYBANK 102,269 -0.04 4.86 TENAGA 37.8 @ 1.54 • Bina Puri Holdings Bhd through its wholly-owned subsidiary BP Energy TENAGA 87,143 -0.06 13.55 STERPRO 12.3 @ 0.18 Sdn Bhd bagged a project from Malaysia's Energy Commission to develop PBBANK 79,933 -0.06 4.56 MYEG 8.9 @ 2.15 a 5MW solar photovoltaic plant in Kunak, Sabah. CIMB 58,029 -0.02 9.67 • Tenaga Nasional Bhd does not anticipate any hike in electricity tariff DNEX-WD 6.0 @ 0.18 until early next year, said Chief Financial Officer, Datuk Fazlur Rahman MISC 31,871 -0.10 3.32 TATGIAP 3.4 @ 0.12 Zainuddin. GENM 31,346 -0.12 2.71 VIZIONE 3.0 @ 0.15 • Multi-Usage Holdings Bhd has applied to strike out three notices of HAPSENG 23,677 -0.05 0.17 CAMRES 2.7 @ 0.25 intention received from shareholders RHBBANK 20,371 -0.04 0.66 • Maxis Communications Bhd may invest at USD500mn in its loss-making SIME 14,350 -0.01 15.89 Indian telecom operations Aircel, India's Economic Times reported. KLCC 14,100 -0.01 0.03 • Malaysian Rating Corporation Bhd has assigned a preliminary rating of AAAIS to CIMB Islamic Bank Bhd's proposed RM10.0bn senior Sukuk Wakalah Programme. Exchange Rate Commodities Futures • Hiap Teck Venture Bhd believes steel industry is heading towards an USD/MYR 4.0820 0.0030 Palm Oil (RM/mt) 2,527.00 -20.00 upswing in the near term mainly due to favourable ringgit and more Crude Oil ($/Barrel) 57.22 -0.14 USD/JPY 112.60 -0.1100 stable steel prices. Gold ($/tr.oz.) 1,264.80 6.70 EUR/USD 1.180 0.0048 • Salcon Bhd's unincorporated joint venture Bach Dang-Salcon has received a water supply system upgrade project in Vietnam for VND426bn (RM77.1mn). • Berjaya Sports Toto Bhd's net profit slid about 1% YoY to RM61.7mn in 2QFY18, dragged mainly by lower contribution from its units HR Owen Important Dates Plc and International Lottery Totalizator Systems, Inc. It was within expectations. ECONBHD - 1:4 Bonus Issue - BI of up to 267.5m new split shares. • United Malacca Bhd's 2QFY18 net profit fell 30.5% YoY to RM12.9mn, 1 bonus share for every 4 split shares held. due to extended wet weather in Sabah which affected crop production, ECONBHD - 1:4 Bonus Issue - BI of up to 267.5m free warrants. coupled with low fresh fruit bunches yield and higher unit cost of 1 warrant for every 4 split shares held, on the same entitlement as the production. It was below expectations. bonus issue of shares. • Singapore's non-oil domestic exports rose 9.1% in November from a year ago, down from the revised 20.5% growth seen in October. Ex-Date: 26/12/2017. Entitlement Date: 28/12/2017. LISTING ON: 29/12/2017. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. Tuesday , December 19, 2017 FBMKLCI: 1,751.64 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks Chartist: Stephen Soo Tel: +603-2167-9607 stsoo@ta.com.my www.taonline.com.my M a r k e t V i e w Positive External Tone Needed to Cushion Local Market The FBM KLCI edge lower on Monday, as mild profit taking activity on selected blue chips weighed on the market, ignoring regional strength on expectations U.S. lawmakers will pass the long-awaited U.S. tax cuts aimed at boosting growth in the world’s largest economy. The KLCI fell 1.43 points to settle at 1,751.64, off a high of 1,755.20 and low of 1,747.62, as losers beat gainers 477 to 400 on cautious turnover totaling 2.40bn shares worth RM2.16bn. 200-day ma Resistance at 1,755, Support at 1,737 Further improvement in the external market environment and strong buying momentum would be essential to cushion the local market during the current window dressing period. As for the index, it will need to sustain above the key 200-day moving average resistance, currently at 1,755, to enhance upside momentum and enable challenge of stronger upside hurdles from 1,765 and 1,782, with the double-top peak of 1,793 and 1,796 acting as major resistance. On the downside, immediate support is seen at 1,737, the 50-day ma level, followed by 1,729, the 30-day ma, while crucial support will be the 5 Dec pivot low of 1,708. Sell on Strength Maybank & RHB Capital Any further rally on Maybank towards the 138.2%FP (RM9.85), with strong resistance seen at 150%FP (RM10.05), should encourage profit-taking and selling as overbought condition will be exaggerated, while key chart support are at 30-day ma (RM9.24) and lower Bollinger band (RM9.07). Likewise, further gains on RHB Bank will be attractive to take profits, especially towards high of 20/03/17 (RM5.40) and the peak of 03/05/17 (RM5.59), while key chart supports are at RM4.92 and RM4.72, the respective 61.8% and 50%, Fibonacci Retracement levels. Most Asian Markets Gain on U.S. Tax Cut Optimism Most Asian markets kicked off the penultimate week of the year on a positive note Monday, as investors reacted to prospects of a completed tax-reform bill getting through the U.S. Congress this week. In the U.S., Republicans unveiled their final tax plan on Friday as two holdout GOP senators indicated they would support the tax bill after compromises were made. Among the provisions that made the cut was a reduction in the corporate tax rate from the existing 35 percent to 21 percent, with effect from 2018. Republicans intend to pass the measures by the middle of this week. Japanese stocks scored their biggest rise in over a month as trading houses and banks rose. Tech and automaker blue-chips also saw gains, while several construction names declined. The Nikkei share average finished 1.55 percent higher at 22,901.77, its biggest gain since Nov. 7 and its highest closing level in a week. In Sydney, the S&P/ASX 200 gained 0.7 percent to end at 6,038.9 as resource stocks gave a boost to the overall index. Rio Tinto climbed 1.22 percent and Fortescue Metals rose 0.82 percent. On mainland, the Shanghai Composite index also inched higher by 0.07 percent to end at 3,268.33 and the Shenzhen Composite shed 0.64 percent to finish at 1,889.13. Page 1 of 8
4. 19-Dec-17 Wall Street at Record Highs as U .S. Tax Looms Wall Street closed at record highs on Monday, as investors extended bets on lawmakers pushing through a major tax overhaul, while a slew of corporate deals also helped lift sentiment. Congress is expected to vote later in the day on a plan that would slash the federal corporate tax rate to 21 percent from 35 percent. Passing the bill would mark a big legislative win for Republicans, who have been pushing to revamp the U.S. tax code for most of 2017. On corporate news, Campbell Soup announced it will buy Snyder's-Lance for nearly USD4.9 billion. CNBC reported last week that Campbell was in advanced talks to acquire the snacks maker. Chocolate maker Hershey also announced a deal to buy Amplify Snack Brands, the maker of Skinny Pop popcorn, for USD12 per share, or 71 percent more than Friday's close of USD7. The day’s gains were broad, with eight of the 11 primary S&P 500 sectors ending higher on the day. Financials, which are seen as the biggest beneficiaries of the tax legislation, were among the biggest gainers of the day, up 0.7 percent. The Dow Jones Industrial Average rose 140.46 points, or 0.57 percent, to 24,792.2, the S&P 500 gained 14.35 points, or 0.54 percent, to 2,690.16 and the Nasdaq Composite added 58.18 points, or 0.84 percent, to 6,994.76. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, December 19, 2017, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 8
5. 19-Dec-17 N e w s I n B r i e f Corporate Singapore tycoon Peter Lim is injecting his healthcare assets , comprising 100% of Thomson Medical Pte Ltd and 70.36% of TMC Life Sciences Bhd, into his real estate company Rowsley Ltd. Singapore-listed Rowsley announced that it is acquiring Sasteria Pte Ltd, the owner of Thomson Medical and the controlling shareholder of TMC Life, from Lim for USD1.6bn billion (RM4.9bn). (The Edge Markets / Bursa Malaysia) Econpile Holdings Bhd, via its subsidiary Econpile (M) Sdn Bhd, has secured a RM32.8mn contract from Majestic Maxim Sdn Bhd, to undertake piling and related works for a mixed development in Kuala Lumpur. The subsidiary will undertake bored piling, pilecaps and substructure works for four 37-storey blocks of apartments; an eight-storey podium for retail and office space, as well as car park. The duration of the contract is about 10 months. (The Edge Markets / Bursa Malaysia) TH Heavy Engineering Bhd (THHE) received support from its creditors at the Court Convened Creditors Meeting with all its secured creditors supporting the scheme, and 94.5% of unsecured creditors backing it. THHE said the support received is in excess of the 75% required for the Scheme of Arrangement pursuant to Section 366 of the Companies Act 2016. Three of its subsidiary companies, namely wholly-owned units THHE Fabricators Sdn Bhd (THF) and O&G Works Sdn Bhd (OGW), and 70%-owned subsidiary THHE Offshore Services Sdn Bhd (THHE Offshore) held the Court Convened Creditors Meetings. (The Edge Markets / Bursa Malaysia) Ekovest Bhd has issued a takeover notice to buy a 62% stake in Iskandar Waterfront City Bhd at RM1.50 per share, via a cash deal or a one-for-one share swap deal to take the latter private. Ekovest said its board of directors, after having considered all aspects of the proposed offer, has decided to present the bid for consideration to its shareholders at an extraordinary general meeting (EGM) which is aimed to be convened in the middle of February next year, or earlier. Ekovest also updated that it has inked a conditional share sale agreement with Kumpulan Prasarana Rakyat Johor Sdn Bhd to acquire the latter’s 6.4% stake in IWCity for RM80.4mn or RM1.50 per share. (The Edge Markets / Bursa Malaysia) Bina Puri Holdings Bhd through its wholly-owned subsidiary BP Energy Sdn Bhd bagged a project from Malaysia's Energy Commission to develop a 5MW solar photovoltaic plant in Kunak, Sabah under the commission's large-scale solar plant initiative. The project is on a build-own-operate basis, is located in Kampung Dasar in Kunak and all the documentation is expected to be finalised by March 2018. Bina Puri group executive director Datuk Matthew Tee Kai Woon revealed its plans to add more solar farms and mini hydro powers into its power portfolio. (The Edge Markets / Bursa Malaysia) Axiata Group Bhd's unit, Dialog Axiata Plc, which is Sri Lanka's largest telecommunications service provider, has bright prospects to increase its investment by another USD300mn in the country as its licence issue is being resolved. Axiata Dialogue is the largest foreign investor in Sri Lanka with total investment of over USD2.2bn and the company is now experiencing technical difficulties after the Sri Lankan government put on hold its licence renewal since May 2. (Bernama) Tenaga Nasional Bhd does not anticipate any hike in electricity tariff until early next year, said Chief Financial Officer, Datuk Fazlur Rahman Zainuddin. "We don't foresee major changes. It still very much in the hands of the government to make that decision (on hike). "Normally the decision on the tariff is done right before the beginning of the regulatory period which is expected in January, so we expect the announcement will be made anytime Page 3 of 8
6. 19-Dec-17 this month ," he told a press conference after TNB's Annual General Meeting. The current average selling price is 39.5 sen/kilowatt hour. (Bernama) Multi-Usage Holdings Bhd has applied to strike out three notices of intention received from shareholders seeking to appoint new directors. The group had received the notices on Dec 12 from Lim Chai Loy, Chua Yong Chiang and Ong Ban Huat to put forward their intention to nominate new directors, subject to the approval of shareholders at the upcoming annual general meeting on Dec 29. Lim proposed to appoint Chua and Ong Kean Peng as non-executive directors, while Chua in turn proposed to appoint Lim as a non-executive director. (The Edge Markets) Iris Corp Bhd has secured a RM5.0mn contract from Malaysia's Home Affairs Ministry (MOHA). Iris told Bursa Malaysia its wholly-owned unit Iris Information Technology Systems Sdn Bhd had received the acceptance letter from the ministry on Friday (Dec 15). According to Iris, the acceptance letter is "for the provision of maintenance services of equipment, software, and facial live capture image (application system) at all passport recipient and issuance offices of Immigration Department of Malaysia". Iris said the acceptance letter also involves "submission of performance bond to MOHA". According to Iris, the contract duration is three years from Jan 1, 2018 to Dec 31, 2020. (The Edge Markets) Chin Hin Group Bhd's indirect wholly-owned subsidiary Metex Modular Sdn Bhd (MMSB) will construct an integrated workers complex with comprehensive facilities in Pengerang, Johor, for RM238.3mn. In a filing with Bursa Malaysia, Chin Hin said MMSB had on Dec 15 accepted a letter of award from Saujana Vision Sdn Bhd for the job. The contract period is for 12 months, commencing Jan 1, 2018. Chin Hin intends to fund the contract via internally generated funds and/or external borrowings. (The Edge Markets / Bursa Malaysia) Maxis Communications Bhd may invest at USD500mn in its loss-making Indian telecom operations Aircel, India's Economic Times reported. Maxis Communications – which holds a 74% stake in – and led by billionaire Ananda Krishnan remains committed to its loss-making Indian telecom operations after having invested USD7bn over a decade without generating returns, the newspaper said. (StarBiz) Malaysian Rating Corporation Bhd (MARC) has assigned a preliminary rating of AAAIS to CIMB Islamic Bank Bhd’s proposed RM10.0bn senior Sukuk Wakalah Programme (Sukuk Wakalah). The rating outlook is stable. MARC said on Monday the rating on the Sukuk Wakalah reflects its seniority and is equalised to CIMB Islamic’s financial institution ratings which MARC has recently affirmed at AAA/MARC-1/Stable. The Sukuk Wakalah will provide an additional platform to raise liquidity for the bank should it need to strengthen its funding base. (StarBiz) Hiap Teck Venture Bhd believes steel industry is heading towards an upswing in the near term mainly due to favourable ringgit and more stable steel prices. As a result, the company expects to turn into profitability in the financial year 2018 like the rest of the industry players. "The market now seems favourable. As you can see, steel players are making profit. What China has been doing in cutting down capacity bodes well for the industry as it stabilises the (steel) prices," said executive director Foo Kok Siew. On ringgit, Foo said the currency is strengthening and currently positive for the steel industry as it cuts down foreign exchange loss. (New Straits Times) Salcon Bhd’s unincorporated joint venture Bach Dang-Salcon has received a water supply system upgrade project in Vietnam for VND426bn (RM77.1mn). The group said in a filing with the stock exchange it had received the letter of acceptance dated Dec 14 issued by Haiphong Water Joint Stock Company, the water authority of Haiphong City, Vietnam. It involves the rehabilitation and upgrade of the second phase of the Haiphong water supply Page 4 of 8
7. 19-Dec-17 system . Salcon has a 25% stake in the JV, and Bach Dang the remaining 75%. Work will begin on Jan 5, 2018 and be completed within 24 months. (The Sun Daily) Hai-O Enterprise Bhd’s net profit rose 34.8% YoY in the second quarter ended Oct 31, 2017 (2QFY18) to RM21.4mn, on higher revenue in its wholesale and multi-level marketing divisions. Revenue for the quarter ended Oct 31, 2017 (2QFY17) grew 23.8% YoY to RM123.5mn. Hai-O declared an interim dividend of six sen per share, to be paid at a date to be decided later. (The Edge Markets / Bursa Malaysia) Berjaya Sports Toto Bhd's net profit slid about 1% YoY in its second quarter ended Oct 31, 2017 (2QFY18) to RM61.7mn, dragged mainly by lower contribution from its units HR Owen Plc and International Lottery Totalizator Systems, Inc (ILTS). Quarterly revenue retreated 5% YoY year-on-year to RM1.4bn. It declared a second interim dividend of four sen per share in respect of FY18, payable on Feb 13. (The Edge Markets / Bursa Malaysia) United Malacca Bhd's second quarter ended Oct 31, 2017 (2QFY18) net profit fell 30.5% YoY to RM12.9mn, due to extended wet weather in Sabah which affected crop production, coupled with low fresh fruit bunches yield and higher unit cost of production. Revenue for 2QFY18, however, rose 8.8% YoY to RM81.0mn. The group declared a first interim dividend of six sen, which will be paid on Feb 8, 2018. In the first half of FY18 (1HFY18), United Malacca’s cumulative net profit fell 12.3% YoY to RM19.2mn, while revenue grew 17.6% YoY to RM151.3mn. (The Edge Markets / Bursa Malaysia) Page 5 of 8
8. 19-Dec-17 N e w s I n B r i e f Economy Asia Japan Exports Boom , but Inflation Not Following Script in Blow to Bank of Japan Exit Plan Japanese exports accelerated sharply in November, yet again pointing to growing momentum in the world’s third-biggest economy. There was just one catch: inflation remained stubbornly low and well off the central bank’s 2% target. The combination of steady growth and benign consumer prices mean the Bank of Japan will lag other major central banks in exiting crisisera monetary stimulus, with analysts widely expecting BOJ Governor Haruhiko Kuroda to keep the liquidity tap wide open at a meeting later this week. Indeed, a BOJ survey on Monday showed companies’ inflation expectations heightened only a touch in December from three months ago, despite a tight labor market and business confidence at over a decade high. The persistently low inflation - with core prices running at an annual pace of 0.8% - was also hard to square off with the robust performance of Japan Inc., which has benefited from booming exports thanks to upbeat global demand. Separate data from the Ministry of Finance showed exports grew 16.2% in the year to November, beating a 14.6% gain expected by economists in a poll and accelerating from the prior month’s 14.0% increase, led by a stellar sales to China and Asia. Economists expect brisk Asia-bound shipments of electronics and solid capital investment in advanced economies will underpin Japan’s export performance in coming months. The value of exports to China, Japan’s largest trading partner, rose 25.1% year-on-year in November to 1.38 trillion yen ($12.24 billion), the highest monthly amount on record, led by equipment to manufacture liquid crystal displays (LCD). Shipments to Asia, which account for more than half of Japan’s exports, grew 20.4% in the year to November to 3.89 trillion yen, the record amount. Exports to the United States rose 13.0% in the year to November, led by cars and excavators, following a 7.1% gain in the previous month. Meanwhile, imports climbed an annual 17.2% versus forecasts for an increase of 18.0% and down from 18.9% a month earlier. (Reuters) China Home Prices Rise 0.3% in November from October New home prices in China extended another month of steady growth in November, after picking up slightly in October, shrugging off a range of government moves to rein in an overheated property market. Average new home prices in China’s 70 major cities rose 0.3% in November from the previous month, in line with October’s price gains, Reuters calculated from National Bureau of Statistics (NBS) data. Compared with a year earlier, new home prices rose 5.1% in November, cooling slightly from 5.4% increase in October. China’s housing market has been on a more than two-year tear, giving a major boost to the economy but stirring fears of a property bubble even as authorities work to contain risks from a rapid build-up in debt. Home prices have slowly levelled out and even softened in the country’s biggest cities in recent months under the weight of increasingly tough measures to curb speculation, though some smaller cities are still seeing appreciable rises. Many analysts still maintain the view that the property boom is on a slowing trend as government cooling measures take hold. Market watchers do not anticipate significant price declines or a crash, but weakness in property and construction are starting to drag on broader economic momentum. (Reuters) Singapore Non-oil Exports in November Eases from Oct's Stellar Growth Singapore's exports continued to record growth in November, but has eased from October's stellar showing due to high base effects from a year ago. Non-oil domestic exports (NODX) rose 9.1% in November from a year ago, down from the revised 20.5% growth seen in October. November's NODX still beat economist estimates of a 5.5% expansion. On a month-on-month seasonally adjusted basis, NODX rose by 8.7% in November, cooling off slightly from the previous month's 12.3% growth. Both electronic and non-electronic exports increased year on year in November. Electronic shipments went up 5.2% in November Page 6 of 8
9. 19-Dec-17 compared to a year ago , after the 4.5% growth in the previous month. Non-electronic products grew for the sixth consecutive month, and was up 10.6% year on year. In particular, non-monetary gold, specialised machinery and primary chemical contributed the most to the growth in non-electronic exports. Singapore's non-oil re-exports - often seen as a proxy for wholesale trading - rose 3.9% in November compared to a year ago, after a 0.9% decline in the previous month. (The Business Times) Australia New Motor Vehicle Sales Gain 0.1% in November The total number of new motor vehicle sales sold in Japan was up a seasonally adjusted 0.1% on month in November, the Australian Bureau of Statistics said - coming in at 99,055. That followed the flat reading in October. By category, sales for other vehicles added 0.4%, while passenger vehicles shed 0.8% and sports utility vehicles lost 0.4%. On a yearly basis, new motor vehicle sales were up 2.1% after gaining 1.0% in the previous month. (RTT News) United States U.S. Housing Market Index Jumps to 18-Year High in December Partially reflecting new policies aimed at providing regulatory relief to the business community, the National Association of Home Builders released a report showing an unexpected jump in U.S. homebuilder confidence in the month of December. The report said the NAHB/Wells Fargo Housing Market Index jumped to 74 in December from a downwardly revised 69 in November. Economists had expected the index to come in unchanged compared to the 70 originally reported for the previous month. With the unexpected increase, the housing market index reached its highest level since hitting 75 in July of 1999. The NAHB said the component measuring buyer traffic surged up to 58 in December from 50 in November. The index gauging current sales conditions also by rose four points to 81 and the index charting sales expectations in the next six months increased by three points to 79. Later this week, reports on new and existing home sales in the month of November are likely to attract attention. (RTT News) Europe and Uni ted Kingdom Eurozone Inflation Rises as Estimated in November Eurozone consumer price inflation rose slightly as estimated in November, final data from Eurostat showed. Consumer prices advanced 1.5% year-on-year in November, following October's 1.4% increase. The rate came in line with the flash estimate published on November 30. Nonetheless, inflation continues to stay well below the European Central Bank's target of 'below, but close to 2%. The increase in inflation was largely driven by higher energy prices. Energy price inflation climbed to 4.7% from 3%. Meanwhile, growth in food, alcohol and tobacco eased to 2.2% from 2.3%. At the same time, growth in non-energy industrial goods prices remained at 0.4% and services cost growth at 1.2%. On a monthly basis, the harmonized index of consumer prices edged up 0.1% in November. Excluding energy, food, alcohol and tobacco, core inflation held steady at 0.9% in November. (RTT News) U.K. Manufacturing Orders Stay at Strongest Level Since 1988 U.K. factories enjoyed another month of strong demand in December, with orders staying at their highest level in almost three decades. The Confederation of British Industry said its monthly factory index was at 17 for a second month, matching the highest level since August 1988. The measure for export orders slowed to 16, from 20 in November, but remained far above its long-run average. U.K. factories are benefiting from the twin effects of a Brexitdriven weaker pound and a resurgence in global trade. The CBI said 14 of 17 sub sectors reported higher-than-usual orders in December, and demand was particularly strong for motor vehicles and transport equipment, and mechanical engineering. The CBI survey chimes with a separate report from accountancy firm BDO LLP, which said U.K. export growth rose in the fourth quarter, outperforming its European peers in part because of sterling. On a trade-weighted basis, the pound is 11 percent below its level before the Brexit referendum in 2016. The export performance is in contrast to the domestic economy, where the currency’s depreciation has pushed up import costs and inflation. That’s hit consumers, who’ve reined in spending this year. According to the CBI, firms expect output growth to Page 7 of 8
10. 19-Dec-17 slow over the coming quarter , thought it will stay higher than average. They also plan to increase prices further over the next three months. The survey of 371 firms was conducted Nov. 22-Dec. 12. (Bloomberg) Share Buy-Back: 18 December 2017 Company BORNOIL Bought Back Price (RM) Hi/Lo (RM) Total Treasury Shares 8,705,000 0.09 0.09/0.085 112,276,000 EPMB FFHB 6,400 14,000 0.50 0.60/0.595 0.50 0.60/0.595 7,035,300 1,404,500 FITTERS GLOMAC 600,000 12,000 0.40/0.395 0.60/0.595 0.40/0.395 0.60/0.595 27,790,000 5,027,400 KSENG LEESK 20,000 193,300 4.59 0.36 4.61/4.55 0.38/0.35 2,163,500 2,570,200 LIENHOE MALAKOF P&O 16,700 100,000 15,000 0.34 0.91 1.25/1.21 0.34/0.335 0.925/0.905 1.25/1.21 18,713,500 724,400 9,977,400 UNIMECH 34,300 1.04/1.01 1.04/1.01 6,163,610 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 8 of 8
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) BETA EPS (sen) PER (X) Div Yield (%) FY17 FY18 FY17 FY18 FY17 52weeks 52weeks % Chg FY18 High Price % Chg Low Price % Chg YTD 18-Dec-17 AUTOMOBILE BAUTO 2.17 2.50 0.75 10.2 14.3 21.3 15.2 5.4 5.3 2.24 -3.1 1.84 17.9 MBMR 2.17 2.32 0.91 20.7 23.2 10.5 9.4 1.9 2.1 2.60 -16.5 2.01 8.0 1.9 1.4 PECCA 1.49 1.69 na 7.7 11.1 19.3 13.4 3.4 3.7 1.70 -12.4 1.28 16.4 -6.3 SIME 2.11 1.98 1.37 11.8 12.0 17.9 17.6 10.9 1.4 2.55 -17.3 1.83 15.2 14.2 UMW 5.10 4.20 1.33 -0.4 19.2 na 26.5 0.0 2.0 6.08 -16.1 4.09 24.6 20.8 BANKS & FINANCIAL SERVICES ABMB 3.90 4.20 1.39 33.1 30.6 11.8 12.8 4.1 4.1 4.49 -13.1 3.62 7.7 4.8 AFFIN 2.29 2.50 0.91 23.5 24.2 9.8 9.5 3.5 3.5 2.98 -23.0 2.22 3.1 -3.4 AMBANK 4.33 5.10 1.28 43.9 48.6 9.9 8.9 4.1 4.2 5.70 -24.0 4.06 6.7 0.5 CIMB 6.29 7.00 1.57 48.7 50.9 12.9 12.3 3.9 4.0 7.08 -11.2 4.49 40.1 39.5 HLBANK 16.94 17.50 0.69 104.9 114.2 16.2 14.8 2.7 2.7 17.08 -0.8 13.02 30.1 25.5 MAYBANK 9.50 9.70 1.00 68.4 70.9 13.9 13.4 5.3 5.3 9.86 -3.7 7.68 23.7 15.9 PBBANK 20.70 23.60 0.64 137.2 142.4 15.1 14.5 2.7 2.8 21.08 -1.8 19.60 5.6 5.0 RHBBANK 5.08 5.20 1.61 50.6 52.2 10.0 9.7 3.0 3.0 5.59 -9.1 4.62 10.0 7.9 BURSA 9.98 11.10 0.82 40.2 39.0 24.8 25.6 3.4 3.4 10.98 -9.1 8.08 23.5 14.4 1.0 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 CONSTRUCTION GADANG 1.06 1.73 0.62 15.2 14.3 7.0 7.4 2.8 2.8 1.37 -22.6 0.97 9.3 GAMUDA 4.83 6.00 0.89 28.5 34.5 16.9 14.0 2.5 2.5 5.52 -12.5 4.58 5.5 1.0 IJM 2.73 2.89 0.74 15.3 13.7 17.9 19.9 2.7 3.5 3.61 -24.4 2.71 0.7 -14.7 PESONA 0.45 0.55 0.96 3.5 5.8 12.9 7.8 3.3 3.3 0.74 -38.8 0.44 3.4 -25.6 SENDAI 0.87 0.58 1.24 8.2 9.6 10.6 9.1 1.1 1.1 1.39 -37.4 0.51 72.3 51.3 SUNCON 2.40 2.65 na 11.3 14.7 21.2 16.3 2.3 2.3 2.44 -1.6 1.65 45.5 41.2 WCT 1.50 1.64 0.88 11.5 12.6 13.0 11.9 2.0 2.0 2.48 -39.4 1.46 2.7 -12.8 LITRAK 5.60 6.26 0.30 41.9 45.6 13.4 12.3 4.5 4.5 6.15 -8.9 5.55 0.9 -4.8 ANNJOO 3.84 4.40 1.31 41.2 45.3 9.3 8.5 4.2 5.7 3.98 -3.5 2.10 82.9 77.0 CHINHIN 1.23 1.49 na 5.7 12.4 21.5 9.9 2.4 4.1 1.49 -17.4 0.86 43.9 41.4 CARLSBG 15.44 18.06 0.75 79.3 86.2 19.5 17.9 5.1 5.6 16.00 -3.5 13.90 11.1 10.9 HEIM 18.48 19.14 0.44 79.6 84.0 23.2 22.0 3.9 4.1 19.58 -5.6 15.78 17.1 12.8 AEON 1.72 1.97 0.41 4.7 6.7 36.4 25.7 2.0 2.3 2.70 -36.3 1.70 1.2 -33.1 AMWAY 7.30 8.18 0.37 35.7 43.9 20.4 16.6 4.1 5.2 8.18 -10.7 7.04 3.7 -0.4 F&N 26.16 27.41 0.19 102.6 155.7 25.5 16.8 2.2 2.3 26.30 -0.5 22.64 15.5 11.4 Building Materials CONSUMER Brewery Retail HUPSENG 1.10 1.25 0.44 5.2 5.4 21.4 20.2 4.1 4.1 1.28 -14.1 1.08 1.9 -4.4 JOHOTIN 1.19 1.48 0.62 9.7 12.5 12.2 9.5 3.8 4.2 1.76 -32.4 1.16 2.6 -4.0 NESTLE 99.70 120.50 0.39 292.7 330.1 34.1 30.2 2.8 3.0 102.40 -2.6 74.12 34.5 27.5 PADINI 5.46 4.67 0.71 23.5 27.0 23.3 20.3 2.1 2.3 5.50 -0.7 2.26 141.5 115.0 POHUAT 1.76 2.50 0.70 26.8 26.8 6.6 6.6 3.4 4.5 2.08 -15.4 1.62 8.6 1.7 QL 4.35 3.26 0.29 12.1 12.8 36.0 33.9 1.0 1.0 4.35 0.0 3.26 33.6 30.6 SIGN 0.74 0.92 1.01 6.7 6.9 10.9 10.6 3.4 3.4 1.07 -31.3 0.73 0.7 -7.5 36.20 52.08 1.33 198.6 187.4 18.2 19.3 5.5 5.5 51.04 -29.1 35.78 1.2 -18.0 GENTING 9.08 11.53 1.50 48.7 54.4 18.6 16.7 1.5 1.8 10.00 -9.2 7.67 18.4 14.3 GENM 5.53 6.51 1.57 18.7 27.0 29.5 20.5 1.4 1.6 6.38 -13.3 4.47 23.7 22.4 BJTOTO 2.28 3.34 0.79 18.3 21.5 12.5 10.6 6.1 7.0 3.07 -25.7 2.25 1.3 -23.0 LUSTER 0.11 0.15 2.01 0.4 0.4 28.9 29.1 0.0 0.0 0.16 -34.4 0.05 110.0 110.0 20.7 Tobacco BAT GAMING Casino NFO HEALTHCARE Hospitals/ Pharmaceutical CCMDBIO 2.39 2.70 0.66 14.0 15.0 17.1 15.9 3.9 4.1 2.46 -2.8 1.90 25.8 IHH 5.85 6.40 0.75 6.7 11.9 86.9 49.2 0.5 0.5 6.45 -9.3 5.42 7.9 -7.9 KPJ 0.94 1.09 0.40 3.2 3.6 29.1 26.3 1.9 2.1 1.14 -18.0 0.90 3.9 -10.5 HARTA 10.04 7.30 0.84 19.4 25.8 51.8 38.9 0.8 1.2 10.06 -0.2 4.53 121.6 107.9 KOSSAN 7.96 8.80 0.20 29.1 38.3 27.4 20.8 1.8 2.4 8.31 -4.2 5.62 41.6 20.8 SUPERMX 1.93 1.80 0.26 10.2 15.3 18.9 12.6 1.6 2.7 2.18 -11.5 1.69 14.2 -8.5 TOPGLOV 6.94 6.30 -0.06 26.4 29.4 26.3 23.6 2.1 2.1 7.08 -2.0 4.56 52.2 29.7 KAREX 1.33 1.00 0.44 2.8 2.8 47.7 48.1 1.5 0.5 2.52 -47.2 1.20 10.8 -43.6 SCIENTX 8.60 9.84 0.42 52.3 68.2 16.5 12.6 1.9 2.4 9.85 -12.7 6.68 28.7 28.4 SKPRES 2.22 2.20 0.46 8.3 10.4 26.9 21.4 1.9 2.3 2.32 -4.3 1.24 79.0 72.1 ASTRO 2.60 3.10 1.17 13.2 14.0 19.6 18.6 4.8 5.0 2.94 -11.6 2.47 5.3 0.0 MEDIA PRIMA 0.61 0.45 0.53 -7.6 -3.8 na na 0.0 0.0 1.28 -52.7 0.58 4.3 -47.4 STAR 1.48 1.25 0.85 5.6 6.7 26.3 22.0 28.4 8.1 2.22 -33.3 1.31 13.0 -24.0 Rubber Gloves INDUSTRIAL MEDIA
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) BETA EPS (sen) FY17 PER (X) Div Yield (%) FY18 FY17 FY18 FY17 52weeks 52weeks % Chg FY18 High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.44 0.75 1.30 3.6 4.5 12.2 9.7 2.3 2.3 0.69 -36.2 0.25 79.6 72.5 LCTITAN 4.78 6.66 na 42.8 63.4 11.2 7.5 4.8 5.2 6.53 -26.8 4.14 15.5 -26.5 -10.9 MHB 0.82 0.78 1.65 -2.0 -0.5 na na 0.0 0.0 1.16 -29.7 0.63 30.4 MISC 7.14 6.56 1.08 57.2 46.8 12.5 15.2 4.2 4.2 7.90 -9.6 6.89 3.6 -2.9 PANTECH 0.64 0.69 1.24 4.0 6.1 16.0 10.4 2.8 4.3 0.74 -14.2 0.44 46.0 42.7 PCHEM 7.45 8.05 0.97 52.7 49.8 14.1 15.0 3.1 3.0 7.81 -4.6 6.69 11.4 6.7 SAPNRG 0.74 1.25 2.60 6.6 -6.5 11.1 na 0.0 0.0 2.10 -65.0 0.73 0.7 -54.6 SERBADK 3.20 3.40 na 22.9 25.7 14.0 12.4 2.2 2.4 3.29 -2.7 1.51 111.9 113.3 UMWOG 0.29 0.51 1.57 -1.7 0.4 na 71.8 0.0 0.0 0.92 -68.6 0.27 7.4 -66.1 UZMA 1.29 1.56 1.05 11.6 13.2 11.1 9.8 0.0 0.0 1.98 -34.8 1.27 1.6 -24.1 FGV 1.73 2.01 1.70 2.1 3.7 82.7 46.7 2.9 2.9 2.18 -20.6 1.47 17.7 11.6 IJMPLNT 2.76 2.69 0.25 12.3 9.1 22.4 30.3 2.5 2.9 3.60 -23.3 2.75 0.4 -18.8 IOICORP 4.41 4.12 1.18 17.3 21.0 25.4 21.0 2.2 3.6 4.81 -8.3 4.31 2.3 0.2 KFIMA 1.60 1.89 0.51 19.9 13.3 8.0 12.0 5.6 5.6 1.96 -18.4 1.56 2.6 -5.9 KLK 24.52 26.18 0.76 100.5 120.7 24.4 20.3 2.0 2.4 25.50 -3.8 23.00 6.6 2.2 SIMEPLT 5.30 6.25 na 17.6 21.0 30.1 25.2 2.6 2.6 5.65 -6.2 4.58 15.7 -5.2 UMCCA 6.68 6.73 0.40 37.5 22.8 17.8 29.3 3.4 2.5 7.08 -5.6 5.67 17.7 11.9 GLOMAC 0.60 0.50 0.62 1.4 3.0 41.5 20.3 4.5 3.3 0.75 -19.5 0.58 3.4 -13.7 HUAYANG 0.63 0.59 0.78 17.3 1.8 3.7 34.4 6.3 0.8 1.21 -47.9 0.60 5.9 -44.2 IBRACO 0.88 0.92 na 3.3 9.1 27.0 9.6 2.3 4.5 1.02 -13.7 0.76 16.6 -12.0 IOIPG 1.91 2.02 0.72 18.9 16.5 10.1 11.5 3.1 3.1 2.22 -14.0 1.85 3.2 -2.0 MAHSING 1.53 1.69 1.06 13.8 13.0 11.1 11.7 4.2 4.2 1.64 -6.7 1.38 10.9 7.0 SIMEPROP 1.40 1.54 na 7.0 9.2 19.9 15.2 0.0 1.4 1.52 -7.9 1.04 34.6 -6.7 SNTORIA 0.70 0.85 0.34 6.8 8.3 10.3 8.5 0.0 1.4 0.91 -23.0 0.60 16.7 -3.8 PLANTATIONS PROPERTY Note: SNTORIA proposed bonus issue of warrants & right issue of shares. For more details please refer to 25.09.17 report. SPB 5.24 4.83 0.80 17.6 21.2 29.8 24.8 2.3 2.3 5.50 -4.7 4.32 21.2 18.5 SPSETIA 3.36 3.77 0.79 21.3 21.3 15.8 15.8 3.6 3.6 4.38 -23.3 3.03 10.9 10.2 SUNWAY 1.68 1.74 0.79 11.5 11.9 14.6 14.1 3.0 3.0 1.96 -14.2 1.25 34.2 30.7 SUNREIT 1.70 1.87 0.73 9.2 10.0 18.4 16.9 5.4 5.9 1.81 -6.1 1.64 3.7 -1.2 CMMT 1.44 1.72 0.41 8.1 8.6 17.8 16.7 5.8 6.2 1.72 -16.3 1.39 3.6 -5.9 -33.9 REIT POWER & UTILITIES MALAKOF 0.91 1.16 0.67 6.3 6.0 14.4 15.1 7.7 7.7 1.43 -36.7 0.88 3.4 PETDAG 24.42 22.08 0.54 102.8 105.1 23.8 23.2 3.2 3.2 25.70 -5.0 21.00 16.3 2.6 PETGAS 16.44 19.10 0.97 89.1 98.8 18.5 16.6 4.1 4.2 21.76 -24.4 15.82 3.9 -22.8 TENAGA 15.38 17.38 0.69 131.6 129.9 11.7 11.8 3.0 3.0 15.68 -1.9 13.00 18.3 10.6 YTLPOWR 1.30 1.17 0.81 8.2 9.7 15.8 13.5 3.8 3.8 1.50 -13.3 1.11 17.1 -11.0 TELECOMMUNICATIONS AXIATA 5.35 5.75 1.32 14.3 16.0 37.4 33.4 1.3 1.5 5.47 -2.2 4.24 26.2 13.3 DIGI 4.80 5.20 0.79 19.5 20.0 24.6 24.0 4.1 4.2 5.19 -7.5 4.36 10.1 -0.6 MAXIS 5.94 6.10 0.73 26.0 26.2 22.9 22.7 3.4 3.4 6.60 -10.0 5.48 8.4 -0.7 TM 6.10 7.20 0.61 22.6 23.2 27.0 26.3 3.3 3.4 6.69 -8.8 5.81 5.0 2.5 98.0 TECHNOLOGY Semiconductor & Electronics ELSOFT 2.78 2.70 0.61 11.3 15.0 24.6 18.6 2.9 3.8 2.95 -5.8 1.36 103.8 IRIS 0.16 0.25 1.87 -1.3 0.6 na 28.0 0.0 0.0 0.22 -29.5 0.10 55.0 40.9 INARI 3.44 3.05 0.98 11.2 14.2 30.7 24.2 2.8 2.9 3.45 -0.3 1.61 114.1 107.7 MPI 12.30 15.40 0.42 89.5 105.5 13.8 11.7 2.2 2.6 14.52 -15.3 7.36 67.1 66.0 UNISEM 3.38 3.85 1.01 23.5 27.1 14.4 12.5 3.6 3.6 4.25 -20.5 2.32 45.7 43.2 TRANSPORTATION Airlines AIRASIA 3.38 3.83 1.06 53.1 38.3 6.4 8.8 1.2 1.5 3.59 -5.8 2.16 56.5 47.6 AIRPORT 8.50 8.47 1.31 19.6 19.7 43.4 43.0 1.2 1.2 9.45 -10.1 5.91 43.8 40.3 Freight & Tankers PTRANS 0.28 0.44 na 2.1 2.3 13.6 12.3 2.5 2.5 0.38 -26.7 0.14 98.7 92.5 TNLOGIS 1.34 1.80 1.14 12.0 13.6 11.1 9.8 3.2 3.7 1.83 -26.9 1.29 3.9 -14.0 WPRTS 3.58 4.06 0.88 17.1 16.8 20.9 21.3 3.6 3.5 4.36 -17.9 3.34 7.2 -16.7 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) Beta EPS (cent) FY17 FY18 PER (X) FY17 FY18 Div Yield (%) FY17 52week 52week % Chg FY18 High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 24.73 23.30 1.25 172.7 189.1 14.3 13.1 2.4 2.4 -2.5 17.2 44.20 42.6 0.0 OCBC 12.34 13.50 1.20 95.5 104.0 12.9 11.9 5.7 6.7 -2.0 8.9 8.84 38.3 0.0 UOB 26.02 26.90 1.07 200.8 215.4 13.0 12.1 2.7 2.7 -3.1 20.1 29.78 27.5 0.0 PLANTATIONS WILMAR 3.10 3.63 0.85 25.6 29.9 12.1 10.4 2.3 2.6 -22.5 3.1 1.31 -13.6 0.0 IFAR 0.37 0.53 0.98 4.9 5.2 7.6 7.1 3.2 3.4 -36.2 0.4 1.37 -29.5 0.0 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
13. RESULTS UPDATE Tuesday , December 19, 2017 FBMKLCI: 1,751.64 Sector: Gaming THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM3.34 (+46.6%) Berjaya Sports Toto Berhad Last Traded: RM2.28 Excellent Yield Play Tan Kam Meng, CFA BUY Tel: +603-2167 9605 kmtan@ta.com.my Review Excluding impairment of investment value (RM0.7mn), provisions for receivables and inventories (RM1.8mn) and forex gains (RM3.2mn), Berjaya Sports Toto’s (BJToto) 1HFY18 core profit amounted to RM136.4mn, which was in line with expectation at 47% and 48% of our and consensus’ full-year forecasts. For this quarter, the group proposed a second interim dividend of 4sen/share, at par with what was proposed in 2QFY17. This was also in line with our dividend projections of 16sen/share for FY18. 1HFY18 core profit declined marginally by 5.8% YoY to RM136.4mn while revenue dropped 1.2% YoY to RM2.9bn. The earnings disappointment came mainly from H.R.Owen, which suffered minor LBIT of RM1.3mn in 2QFY18 (vs an EBIT of RM7.9mn recorded a year ago), due to softening demand of new and used cars in UK. Also, the higher effective tax rate (34.2%) in 2QFY18 dragged 1HFY18 earnings lower as well. The impact was partially mitigated by better performance of its NFO division, which recorded higher revenue and PBT of 4.4% and 17.1% YoY respectively, despite one lesser draw in 2QFY18. The higher sales can be attributed to high jackpot value in the Grand Toto 6/63, hitting record high of RM69.6mn in Sep-17. Meanwhile, the increase in EBIT was due to higher prize payout in 2QFY17. QoQ, 2QFY18 core earnings declined by 15.2% to RM62.6mn underpinned by lower car sales and losses recorded by H.R.Owen in 2QFY18. The NFO segment has recorded higher revenue and EBIT of 6.2% and 4.8% respectively due to 3 additional special draws in 2QFY18. Impact No change to our FY18-19 earnings projections. Outlook We are less wary of FIFA World Cup affecting FY19 NFO performance but cautious on possible donations to election campaigns for the upcoming general election. Referring to BJToto’s quarterly performance ended July-14, when FIFA World Cup was held in Brazil, BJToto’s revenue declined by 7.9% but that was due to lesser draws. For FIFA World Cup 2010, BJToto recorded higher revenue of 1% YoY for the quarter ended July-2010. Valuation We maintain our DDM valuation of RM3.34/share for BJToto, based on an unchanged CAPM rate of 10.20%. Given the current low yielding environment, BJToto stands out as an excellent dividend play with annual dividend yield of 7.0%. As such, we reiterate our Buy recommendation on BJToto. www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) Par Value 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) BST MK 1562 Main Board 1,347.0 RM3,071.2 0.10 3.07/2.25 1,681 55.9 0.79 Berjaya Corp (44.1%) Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 0.0 0.0 290.6 351.6 285.0 294.8 102.0 119.3 Buy (Maintained) Financial Indicators Net Debt / Equity (%) FCPS (sen) Price / CFPS (x) ROA (%) NTA/Share (sen) Price/NTA (x) FY18 76.4 10.5 21.7 10.9 4.0 56.7 FY19 56.6 11.5 19.8 12.7 12.0 18.9 Scorecard vs TA vs Consensus % of FY 46.9 47.8 Within Within Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth BJTOTO (0.9) (1.7) (11.3) (25.5) FBM KLCI 1.7 (1.4) (2.1) 7.2 (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 3
14. 19-Dec-17 Table 2 : Earnings Summary (RMmn) FYE 30 April (RMmn) R evenue E B ITDA E B ITDA ma rg in (% ) P reta x profit Net profit Core net profit EPS (s en) Core E P S (s en) Core E P S g rowth (% ) PER (x) Net DP S (s en) Net div yield (% ) Core R OE (% ) 2016 5,563.2 496.4 8.9 446.3 306.2 318.6 22.7 23.7 (14.3) 9.6 19.0 8.3 44.0 Table 3: 2QFY18 Results Analysis (RMmn) FYE 30 April (RMm) 2Q17 1Q18 R evenue 1,454.8 1,471.8 E B IT 112.1 125.7 (12.5) (11.7) F ina nce cos ts As s ocia tes & J V (3.0) (1.8) EI (12.7) 0.5 Pretax profit 95.4 117.5 Ta x (31.3) (39.9) MI (1.9) (3.3) R eported net profit 62.1 74.3 Core net profit 74.9 73.8 EPS Net DP S E B IT ma rg in P reta x ma rg in Ta x ra te O the r info rmatio n NF O revenue Numbe r o f draw s - No r mal draw s - S pe c ial draw s R evenue/dra w NF O E B IT NF O E B IT ma rg in 2017 5,731.4 429.8 7.5 376.1 237.1 247.4 17.6 19.4 (18.1) 11.8 14.0 6.1 30.5 2018F 5,754.8 488.9 8.5 423.6 290.6 290.6 21.5 21.5 10.9 10.6 16.0 7.0 35.6 2019F 5,777.4 571.2 9.9 512.6 351.6 351.6 26.0 26.0 21.0 8.8 18.0 7.9 38.8 2020F 5,843.5 582.5 10.0 527.8 362.0 362.0 26.8 26.8 3.0 8.5 18.0 7.9 35.5 2Q18 1,383.7 104.4 (13.6) 0.4 (0.9) 96.1 (32.9) (1.5) 61.7 62.6 QoQ (% ) (6.0) (17.0) 16.3 (121.6) (258.8) (18.2) (17.5) (56.6) (16.9) (15.2) YoY (% ) (4.9) (6.9) 8.6 (112.9) (93.3) 0.7 5.1 (24.3) (0.7) (16.4) 6M17 2,890.4 214.2 (25.3) (0.2) (23.9) 191.8 (66.3) (4.6) 120.9 144.8 6M18 2,855.5 230.1 (25.3) (1.4) (0.3) 213.6 (72.8) (4.8) 136.0 136.4 YoY (% ) (1.2) 7.4 0.0 553.3 (98.7) 11.4 9.7 5.3 12.5 (5.8) (s en) (s en) 5.6 4.0 5.5 4.0 4.6 4.0 (15.1) 0.0 (16.4) 0.0 10.7 8.0 10.1 8.0 (5.8) 0.0 (% ) (% ) (% ) 7.7 6.6 32.8 8.5 8.0 33.9 7.5 6.9 34.2 % pts (1.0) (1.0) 0.3 % pts (0.2) 0.4 1.4 7.4 6.6 34.6 8.1 7.5 34.1 % pts 0.6 0.8 (0.5) 793.7 45.0 39.0 6.0 17.6 98.2 12.4 780.1 42.0 39.0 3.0 18.6 109.7 14.1 828.7 45.0 39.0 6.0 18.4 115.0 13.9 6.2 3.0 0.0 3.0 (0.8) 4.8 (0.2) 4.4 0.0 0.0 0.0 4.4 17.1 1.5 1,592.9 88.0 79.0 9.0 18.1 112.8 7.1 1,608.8 87.0 78.0 9.0 18.5 109.7 6.8 1.0 (1.0) (1.0) 0.0 2.2 (2.8) (0.3) (day ) (day ) (day ) (% ) * In c lu ding dis trib utio n o f tre as ury s hare o n the b as is o f 1:140 Page 2 of 3
15. 19-Dec-17 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, December 19, 2017, the analyst, Tan Kam Meng, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
16. COMPANY UPDATE Tuesday , December 19, 2017 FBMKLCI: 1,751.64 Sector: Building Materials THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM1.49 (+21.1%) Chin Hin Berhad Last Traded: RM1.23 Expanding its IBS Footprint Ooi Beng Hooi Tel: +603-2167 9612 Buy benghooi@ta.com.my Secure RM238.3mn of New Job CHINHIN’s 70%-indirectly-owned subsidiary, Metex Modular Sdn. Bhd. (MMSB), had won a job from Saujana Vision Sdn. Bhd. to construct an integrated workers complex with facilities in Pengerang, Johor for a contract sum of RM238.3mn. The project has a contract period of 1 year commencing from 1 January 2018. The recently acquired MMSB is involved in the design, engineering, manufacturing and construction of modular units and prefabricated, prefinished volumetric construction solutions. Our view We are positive on the first Industrial Building System (IBS) related construction job win. This indicates that the group is on the right track in pursuing and adopting IBS, which is in line with the government’s initiative and the industry trend. In addition, we expect most of the raw materials for this project would be sourced internally, improving orders for its manufacturing and trading divisions. www.taonline.com.my Share Information Bloomberg Code CHIN MK CHINHIN Bursa Stock Code 5273 Listing Main Market Share Cap (mn) 556.4 684.4 Market Cap (RMmn) 1.49/0.845 52-wk Hi/Lo (RM) 1367.3 12-mth Avg Daily Vol ('000 shrs) 29.1 Estimated Free Float (%) 1.21 Beta Major Shareholders (%) Divine Inventions - 47.72 Chiau Beng Teik- 12.16 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 27.6 31.8 69.2 34.1 56.0 93.4 123.6 Buy (Maintained) Financial Indicators If the project is successfully implemented, we believe CHINHIN could leverage on its track record to open up further opportunities within domestic or neighbouring markets. Assuming a PBT margin of 12%, we expect the project to enhance CY18’s net profit by RM15.4mn. Impact We raise our FY18 earnings projection by 27.6% to factor in the contribution from this job win. Valuation Previously we assigned a premium of 2x PE multiple for its strong earnings growth potential for FY18 and FY19. As we expect earnings growth to taper off in FY19 following the job win, we trim the target PE multiple from 14x to 12x. Subsequent to the revision in earnings forecasts, we raise the target price from RM1.36 to RM1.49, based on revised 12x CY18 earnings. Maintain BUY call on the stock. Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (sen) Price/NTA (x) Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth FY17 56.8 (1.3) (94.3) 3.9 0.7 1.8 FY18 50.5 (8.3) (14.9) 7.7 0.8 1.5 CHINHIN (3.1) (6.1) (6.8) 39.8 FBM KLCI 1.7 (1.4) (2.1) 7.2 (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 2
17. 19-Dec-17 Earnings Summary (RMmn) Profit & Loss (RMmn) YE Dec 31 Balance Sheet (RMm) 2015 Revenue 2016 2017F 2018F 2019F 1199.2 1058.8 1096.3 1494.8 1355.5 EBITDA YE Dec 31 2015 2016 2017F 2018F 2019F Fixed assets 200.8 293.7 310.8 316.9 312.6 74.3 83.7 75.0 129.7 117.1 Others 103.7 71.4 71.4 71.4 71.4 Dep. & amortisation (14.8) (16.3) (18.5) (19.5) (19.9) NCA 304.5 365.1 382.2 388.2 383.9 Net finance cost (20.5) (16.3) (13.5) (11.7) (10.2) Cash 180.2 73.5 66.6 20.5 52.1 39.0 51.2 41.3 98.5 87.0 Others 368.3 381.9 365.5 488.5 446.5 CA 548.5 455.4 432.1 509.0 498.6 Total assets 853.0 820.4 814.3 897.3 882.5 ST borrowings 318.2 284.1 238.7 204.6 172.6 Other liabilities 188.1 169.0 159.4 205.7 189.5 CL 506.3 453.0 398.1 410.3 362.1 Shareholders' funds 261.2 324.3 373.1 443.9 477.4 36.3 PBT Taxation (8.8) (9.7) (9.5) (22.6) (20.0) Net profit 30.2 41.4 31.8 75.8 67.0 Core net profit 30.2 33.8 31.8 69.2 67.0 GDPS (sen) 0.0 3.5 3.0 5.0 6.0 Div Yield (%) 0.0 2.8 2.4 5.5 4.9 Cash Flow (RMm) YE Dec 31 2015 2016 2017F 2018F 2019F PBT 39.0 51.2 41.3 98.5 87.0 LT borrowings 70.7 36.3 36.3 36.3 Non cash expenses 36.0 18.3 32.0 31.2 30.1 Other LT liabilities 14.7 6.8 6.8 6.8 6.8 (29.7) (26.5) (23.0) (34.4) (30.2) NCL 85.4 43.1 43.1 43.1 43.1 Changes in WC (5.7) (36.9) 6.8 (76.7) 25.8 853.0 820.4 814.3 897.3 882.5 Operational cash flow 39.6 6.0 57.0 18.6 112.7 Capex (19.5) (63.8) (40.0) (30.0) (20.0) Others 4.7 12.0 4.4 4.4 4.4 2015 2016 2017F 2018F 2019F Investment cash flow (14.8) (51.8) (35.6) (25.6) (15.6) EBITDA Margins (%) 6.2 7.9 6.8 8.7 8.6 Debt raised/(repaid) 21.0 (77.5) (29.3) (16.1) (12.1) Core EPS (sen) 6.8 6.8 6.0 12.4 12.0 0.0 (7.6) (15.9) (37.9) (33.5) EPS Growth (%) (49.9) (0.1) (12.3) Non Operating expenses Dividend Others Total capital Ratio YE Dec 31 107.8 (3.2) 8.0 34.1 16.9 14.9 (20.0) PER (x) 18.0 18.0 20.5 9.9 10.2 29.0 (51.0) (28.4) (39.1) (65.6) GDPS (sen) 0.0 3.5 3.0 5.0 6.0 0.0 0.2 0.0 0.0 0.0 Div Yield (%) 0.0 2.8 2.4 5.5 4.9 53.8 (96.5) (6.9) (46.0) 31.6 Beginning cash 112.1 165.9 69.4 62.4 16.4 Net cash (RMmn) (228.8) (250.5) (212.1) (224.1) (160.4) Ending cash 165.9 69.4 62.4 16.4 48.0 Net gearing (%) 87.6 77.2 56.8 50.5 33.6 ROE (%) 12.3 11.5 9.1 16.9 14.5 ROA (%) 3.5 4.1 3.9 7.7 7.6 NTA (RM) 0.6 0.7 0.7 0.8 0.9 P/NTA(x) 2.1 1.9 1.8 1.5 1.4 Financial cash flow Forex effect Net cash flow Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, December 19, 2017, the analyst, Ooi Beng Hooi, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 2
18. RESULT UPDATE Tuesday , December 19, 2017 FBMKLCI: 1,751.64 Sector: Plantation THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM6.73 (+0.7%) United Malacca Berhad Last Traded: RM6.68 Unexciting Near Term Outlook Angeline Chin Tel: +603-2167 9611 SELL angelinechin@ta.com.my Review United Malacca posted a disappointing 2QFY18 results, which came in below expectations. After stripping out all the exceptional items, 2QFY18 core net profit dropped 28.9% YoY to RM14.7mn. The lower-thanexpected results were mainly due to higher production cost and operating expenses, which resulted in lower margin. Cumulatively, 1HFY18 core net profit decreased by 26.0% YoY to RM21.3mn, accounting for 32% and 30% of our and consensus' full-year estimates. The decrease was mainly due to higher depreciation charges, lower FFB yield and high unit cost of production in the newly-matured area (Malaysia: 1,679 ha, Indonesia: 2,961 ha). FFB production increased by 5.7% to 181.6k tonnes. However, FFB yield dropped to 7.25 tonne/ha compared to 8.43 tonne/ha in the preceding year. The lower yield was mainly due to the newly-matured 2,961 ha of oil palms in Indonesia that came into harvesting at the beginning of the current financial year. Meanwhile, the average CPO selling price rose 3.1% YoY to RM2,714/tonne while the PK selling price declined by 12.1% YoY to RM2,308/tonnes. The group declared a first interim single-tier dividend of 6 sen for the quarter under review (vs. 2QFY17: 8 sen/share). Impact We trimmed our FY18 and FY19 earnings forecast by 28.4% and 8.8%, respectively after factoring in higher production costs and lower margin. We also introduce our FY20 net profit forecast of RM87.0mn underpinned by 7.1% growth in FFB. Outlook Management expects higher FFB production for FY18 due to improved FFB yield from the young matured palms and additional 4,640 ha coming into maturity (Malaysia - 1,679 ha and Indonesia - 2,961 ha). We believe FFB yield will improve as more trees mature to their prime ages. www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) Par Value 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) UMR MK 2593 Main Market 209.2 1,397 1.00 7.08/5.673 65 72 0.4 OCBC- 20.26 Aberdeen-11.18 HSBC - 8.53 EPF - 8.3 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 (28.4) (8.8) 47.7 73.0 71.2 79.2 66.9 92.1 Buy (Downgrade) Financial Indicators ROE (%) Net Gearing (x) NTA/Share (RM) Price/NTA (x) FY18 2.7 0.1 8.0 0.8 FY19 4.1 0.1 8.2 0.8 % of FY 32 30 Below Below UMR (5.0) (1.5) 10.8 15.9 FBM KLCI 1.7 (1.4) (2.1) 7.2 Scorecard vs TA vs Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBMKLCI However, according to management, the higher FFB production will not translate into proportionately higher profit due to higher unit cost of production for the newly-matured palms. Valuation With the earnings downgrade, the target price for United Malacca is adjusted lower to RM6.73/share (previously RM7.52/share), based on CY18 PER of 22x, which is 2x lower than our sector target PER of 24x as we believe the near-term upside will be capped by escalating operating costs and potential risk of low FFB production. We downgrade the stock from Buy to Sell. Source: Bloomberg Page 1 of 3
19. 19-Dec-17 Key risks to our call are , 1) a prolong downcycle in CPO price, 2) escalating production cost, 3) global economic slowdown, 4) lower FFB production, 5) large supply of soybean oil in the market. Figure 1 : Plantation Statistics (Malaysia) 2QFY17 94,220 4.62 2,727 2,777 FFB (tonne) FFB yield (tonne/ha) Average CPO price/tonne (RM) Average PK price/tonne (RM) 1QFY18 83,484 3.33 2,721 2,070 2QFY18 98,150 3.92 2,707 2,522 % QoQ 17.6 17.7 (0.5) 21.8 % YoY 4.2 (15.2) (0.7) (9.2) 1HFY17 171,848 8.43 2,633 2,627 1HFY18 181,634 7.25 2,714 2,308 % YoY 5.7 (14.0) 3.1 (12.1) Source: Company, TA Research 2QFY18 Results Analysis (RMmn) FYE 30 April (RMmn) Turnover EBIT Net Interest Inc./ (exp.) EI Adj. PBT Pretax Taxation MI Reported net profit Core net profit 2QFY17 74.4 28.6 (0.7) (2.2) 27.9 25.7 (7.0) (0.2) 18.5 20.7 1QFY18 70.3 10.1 (1.0) (0.3) 9.0 8.7 (2.9) 0.5 6.3 6.6 2QFY18 81.0 20.9 (1.1) (1.8) 19.8 18.0 (5.5) 0.4 12.9 14.7 Core EPS (sen) GDPS (sen) 10.0 8.0 3.2 0.0 EBIT Margin (%) Adj. Pretax Margin (%) Tax Rate (%) 38.4 37.4 25.0 14.4 12.9 32.0 QOQ% 15.2 >100 (7.4) >-100 >100 >100 (91.7) (15.4) >100 >100 YoY % 8.8 (26.7) 56.1 15.5 28.9 (30.0) 20.5 nm (30.5) (28.9) 1HFY17 128.7 39.6 (1.3) (6.9) 38.3 31.3 (9.3) (0.1) 21.9 28.8 1HFY18 151.3 31.0 (2.2) (2.1) 28.9 26.7 (8.4) 0.9 19.2 21.3 7.1 6.0 13.9 8.0 10.2 6.0 25.9 24.5 28.0 30.8 29.7 24.3 20.5 19.1 29.2 YoY% 17.6 (21.6) (60.8) 69.3 24.5 (14.6) 9.4 nm (12.3) (26.0) Earnings Summary FYE April 30 Revenue EBITDA EBITDA Margin Pretax profit Reported net profit Core net profit Reported EPS Core EPS Core EPS Growth PER Gross Div Div Yield ROE (%) (sen) (sen) (%) (x) (sen) (%) (%) FY16 205.7 74.7 36.3 70.2 59.6 46.6 28.5 22.3 (2.1) 30.0 16.0 2.4 3.5 FY17 274.7 103.2 37.6 98.9 84.6 78.6 40.4 37.6 68.7 17.8 23.0 3.4 4.9 FY18E 279.1 95.1 34.1 66.5 47.7 47.7 22.7 22.7 (39.7) 29.4 17.0 2.5 2.7 FY19F 310.6 134.2 43.2 102.0 73.0 73.0 34.5 34.5 52.1 19.4 18.0 2.7 4.1 FY20F 349.6 157.0 44.9 122.2 87.0 87.0 40.8 40.8 18.3 16.4 16.0 2.4 4.8 Page 2 of 3
20. 19-Dec-17 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, December 19, 2017, the analyst, Angeline Chin, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3