Bursa Malaysia Daily Market Report - 19 October

Transcription

1. Thursday , 19 October, 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. 2. 3. 4. A u t o m o t i ve S e c t o r : N a t io n a l s Po s t 1 0 - Y e a r L o w D iG i .C o m Be rh a d : Sta b il i se d P re p a id Se g m e n t P a d in i H o ld i n g s Be rh a d : S to c k i s F u l ly V a lu e d T o p G lo ve C o rp o ra t i o n Be r h a d : F u n da m e n ta l s I n ta c t b u t F a i r ly Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks 2. D ai l y St o ck S cr een 3. Fore i gn Te ch n i ca l St o c k W at ch ( A US & H K ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2031 6608 www.ta.com.my
2. Daily Market Commentary Thursday , 19 October 2017 For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my KLSE Market Statistics (17.10.2017) (mil) Main Market 1,532.6 Warrants 132.6 ACE Market 1,202.7 Bond 18.8 ETF 0.3 LEAP 0.3 Total 2,887.4 Off Market 202.8 Volume +/-chg (RMmn) 52.2 1,999.1 -16.5 13.7 -308.5 265.5 -0.2 2.8 0.09 0.4 0.21 0.1 2,281.4 134.5 1,295.6 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP October Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA (mn) % YTD chg -5.38 -40.16 -22.96 -6.50 -0.31 -0.32 -0.13 -0.37 6.53 9.49 16.95 6.94 23,157.60 6,624.22 7,542.87 21,363.05 2,482.91 28,711.76 3,329.03 1,707.53 5,929.20 3,381.79 2,000.11 5,890.48 160.16 0.56 26.70 26.93 -1.46 14.27 5.97 -16.94 -18.13 9.75 -7.95 0.86 0.70 0.01 0.36 0.13 -0.06 0.05 0.18 -0.98 -0.30 0.29 -0.40 0.01 17.18 23.06 5.60 11.76 22.52 30.50 15.56 10.67 11.94 8.96 1.57 3.97 6.13 4.35 9.48 24.00 0.03 0.41 0.01 14.30 1.33 0.11 2.44 3.00 0.03 0.07 Counter MAYBANK SIME CIMB IHH AXIATA PETGAS MISC GENM KLK PETDAG Mkt Cap. Chg (RM’mn) (RM) 99,683 61,684 58,640 55,670 44,989 36,607 32,095 30,156 25,666 24,121 -0.04 -0.01 -0.02 -0.09 -0.08 -0.18 -0.06 -0.05 -0.64 -0.72 Foreign selling on core blue-chip heavyweights pressured down the index to close at a fresh six-month low Tuesday, while profit-taking also spread to small caps and ACE Market stocks ahead of the Deepavali break. The KLCI lost 5.38 points to close at the day's low of 1,748.99, off an early high of 1,755.43, as losers beat gainers 468 to 395 on lower turnover of 2.88bn shares worth RM2.28bn. Persistent selling pressure on index heavyweights should exert downward pressure and correction in the near-term, while active trading momentum focus on the small cap sector. The index's close below 1,750 should accelerate a test of the crucial 200-day ma uptrend support at 1,743, with a breakdown to see stronger support from the April low of 1,729. Overhead resistance stays at 1,770, the 50 and 100-day moving averages, followed by the 8 Aug peak of 1,782, and then the double-top peak of 1,793 of 13 Sept and 1,796 of 16 June. Further dip on Gamuda shares towards the 50%FR (RM5.08) will be attractive to bargain for oversold rebound towards the 76.4%FR (RM5.32), with tougher resistance from the upper Bollinger band (RM5.38) and 28/ 6/17 peak (RM5.52). Likewise, any further weakness on Genting Malaysia shares towards the 38.2%FR (RM5.17), matching the lower Bollinger band, should attract buyers looking for oversold rebound towards the 50%FR (RM5.40), with next resistance from the 61.8%FR (RM5.63) and 76.4%FR (RM5.92). News Bites • • • • • Top 10 KLCI Movers Based on Mkt Cap. (RM) @ @ @ @ @ @ @ @ @ @ @ @ @ @ % chg 1,748.99 12,554.33 17,209.97 1,749.00 Off Market CIMB 90.5 BIMB 27.4 MAYBANK 18.5 KLK 15.0 DBE 15.0 DNEX 12.2 MTOUCHE-OR 6.7 TENAGA 4.5 ROHAS 4.0 HUBLINE 2.5 MULPHA 2.0 JHN 1.8 NEXGRAM 1.2 LUSTER-WB 1.0 Review & Outlook Value Value/ +/-chg Volume Up Down -33.0 1.30 269 325 -3.6 0.10 67 101 44.1 0.22 52 37 0.2 0.15 4 4 -0.05 1.15 2 1 0.04 0.19 1 0 0.79 395 468 1,176.6 6.39 Vol. (mn) 6.75 2.25 12.79 29.18 5.61 0.20 0.95 5.06 0.35 0.17 • • • • • • • • • Important Dates EAH - 4:3 Rights Issue - RI of up to 2,524.4m shares together with up to 1,262.2m free detachable warrants. 4 rights shares for every 3 existing shares held, at an issue price of RM0.02 per rights share, together with 2 free warrants for every 4 rights shares subscribed. Application Closed: 17/10/2017. LISTING ON: 01/11/2017. TECFAST - 1:3 Bonus Issue - BI of 57.0m shares. 1 bonus share for every 3 existing shares. Ex-Date: 19/10/2017. Entitlement Date: 23/10/2017. LISTING ON: 24/10/2017. • • • Sapura Energy Bhd, formerly SapuraKencana Petroleum Bhd, announced it is discontinuing its joint venture with London-based Subsea 7 S.A. Prime Minister Datuk Seri Najib Tun Razak said Malaysia looks forward to commence the Kuala Lumpur-Singapore High Speed Rail (HSR) project by next year. Seacera Group Bhd has won a contract worth RM216mn to build the Rubber Research Institute of Malaya's centre of excellence in Selangor. YFG Bhd's wholly-owned subsidiary YFG Engineering Sdn Bhd has bagged an RM200mn contract to construct apartment buildings in Perak. Heitech Padu Bhd has secured three contracts to establish high voltage interconnection facilities for three solar power plants for a sum of RM75.2mn. T7 Global Bhd, formerly Tanjung Offshore Bhd, is selling its entire equity stake in 7 New Market Street Holdings Ltd, UK, for £5.75mn (RM32.2mn). United Malacca Bhd announced that it has inked a conditional agreement to gain a controlling interest on a plot of land in Central Sulawesi, Indonesia. Mega First Corp Bhd is ending a Sino-foreign cooperative joint-venture agreement with Qixian Heat & Power Co Ltd. Willowglen MSC Bhd's minority shareholders have been advised to reject a takeover offer of 80 sen a share as it is below the fair value ranging from 92 sen to RM1.01. DiGi.Com Bhd recorded a 12% drop in net profit for the third quarter ended Sept 30, 2017 to RM384.6mn. Malaysia's unemployment rate for August stood at 3.4%, dropped 0.1%point compared with the previous month. After four months of solid expansion, Singapore's exports stunned economists with a 1.1% contraction in September. U.S. housing starts decreased last month for the fifth time in six months, a sign home builders are struggling to keep pace with solid buyer demand. U.S. industrial output picked up modestly in September, a sign a key sector of the economy is weathering the hurricane-related disruption that hit the prior month. The U.K. jobless rate held at a 42-year low in the three months through August as Britain enjoyed near-record employment. U.K. inflation rose to a five-year high of 3% in September, far outstripping wage increases, the latest official figures show. Eurozone inflation held steady in September, as initially estimated, final data from Eurostat showed. Exchange Rate USD/MYR 4.2213 -0.0009 USD/JPY 112.77 0.5900 EUR/USD 1.175 -0.0008 Commodities Futures Palm Oil (RM/mt) 2,741.00 -21.00 Crude Oil ($/Barrel) 52.03 0.09 Gold ($/tr.oz.) 1,282.70 -4.30 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. Thursday , October 19, 2017 FBMKLCI: 1,748.99 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 Correction on Persistent Foreign Selling Foreign selling on core blue-chip heavyweights pressured down the index to close at a fresh six-month low Tuesday, while profit-taking also spread to small caps and ACE Market stocks ahead of the Deepavali break. The KLCI lost 5.38 points to close at the day’s low of 1,748.99, off an early high of 1,755.43, as losers beat gainers 468 to 395 on lower turnover of 2.88bn shares worth RM2.28bn. Key 200-day ma Support at 1,743 Persistent selling pressure on index heavyweights should exert downward pressure and correction in the near-term, while active trading momentum focus on the small cap sector. The index’s close below 1,750 should accelerate a test of the crucial 200-day ma uptrend support at 1,743, with a breakdown to see stronger support from the April low of 1,729. Overhead resistance stays at 1,770, the 50 and 100-day moving averages, followed by the 8 Aug peak of 1,782, and then the double-top peak of 1,793 of 13 Sept and 1,796 of 16 June. Buy on Dip Gamuda & Genting Malaysia Further dip on Gamuda shares towards the 50%FR (RM5.08) will be attractive to bargain for oversold rebound towards the 76.4%FR (RM5.32), with tougher resistance from the upper Bollinger band (RM5.38) and 28/6/17 peak (RM5.52). Likewise, any further weakness on Genting Malaysia shares towards the 38.2%FR (RM5.17), matching the lower Bollinger band, should attract buyers looking for oversold rebound towards the 50%FR (RM5.40), with next resistance from the 61.8%FR (RM5.63) and 76.4%FR (RM5.92). Asian Market Tread Water as China Congress Starts Asian markets closed narrowly mixed on Wednesday as investors in the region looked to China's Party Congress for signs on future policy direction in the world's second-largest economy. Markets kept an eye on developments in China as the country's 19th Party Congress began. Although past iterations of the meeting have proven opaque, investors attempted to look for signs on how Beijing might tackle issues such as its debt problem and industrial overcapacity. Japan’s Nikkei share average rose for a 12th consecutive day on Wednesday, getting a lift from hopes that this weekend’s election will produce political stability and continuation of loose monetary policy. The Nikkei ended 0.1 percent higher at a fresh 21-year high of 21,363.05. It’s the longest winning streak since May-June 2015. China stocks firmed on Wednesday, with the blue-chip index closing at a 26-month high, as investors pinned hopes on a key leadership summit in Beijing promoting reforms to boost growth in the world’s second-largest economy. The blue-chip CSI300 index rose 0.8 percent, to 3,944.16 points, its highest close since August 2015, while the Shanghai Composite Index added 0.3 percent to 3,381.79 points. Across the Korean Strait, the Kospi reversed early gains and slid 0.06 percent to close at 2,482.91 as gains made by automakers were offset by falls in blue-chip tech names. In down under, the S&P/ASX 200 edged up 0.02 percent to end at 5,890.5, with the utilities sub-index leading gains and rising 1.21 percent. Page 1 of 8
4. 19-Oct-17 Dow Hits Another Milestone The Dow Jones Industrial Average punched firmly higher on Wednesday to a historic close above 23 ,000, driven by a jump in IBM after it hinted at a return to revenue growth. It took 54 trading days for the gauge to close above the next round-number milestone, representing the third fastest 1,000-point advance in history. Shares of IBM, which beat expectations on revenue, jumped 8.9 percent and accounted for about 90 points of the day’s 160 point-gain in the blue-chip index. This earnings season has gotten off to a good start, with 81 percent of companies that have reported beating on the bottom line, while 73 percent have topped sales estimates, according to Thomson Reuters. Solid earnings, stronger economic growth and hopes that President Donald Trump may be able to make progress on tax cuts have helped the market rally this year. The Dow Jones Industrial Average rose 160.16 points, or 0.7 percent, to end at 23,157.6, the S&P 500 gained 1.9 points, or 0.07 percent, to 2,561.26 and the Nasdaq Composite added 0.56 point, or 0.01 percent, to 6,624.22. 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 Thursday, October 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 – 2031 6608 www.ta.com.my Page 2 of 8
5. 19-Oct-17 N e w s I n B r i e f Corporate Sapura Energy Bhd , formerly SapuraKencana Petroleum Bhd, announced it is discontinuing its joint venture with London-based Subsea 7 S.A. It said the two entities mutually agreed to discontinue their SapuraAcergy JV. Consequently, SapuraAcergy's heavy-lift and pipelay vessel, Sapura 3000, has been sold to Sapura Energy, which has now become the sole owner of the vessel. (Bursa Malaysia / The Edge) Commentary: We are mildly negative on this announcement as it results in full consolidation of Sapura 3000’s losses. To recap, this vessel is experiencing difficulty in securing contracts during this current industry downcycle. As such, this had resulted in low vessel utilization and dip in contribution to RM1mn in 2QFY18. Nevertheless, the impact to our earnings estimates is negligible at this juncture, due to:- 1) for FY18, full consolidation of marginal loss starting from end-Oct 17 (4.5 months contribution), and 2) we assume Sapura 3000 will breakeven in FY19-20. Maintain Sell on SAPE with unchanged TP of RM1.66 based on 0.75x CY18 P/B. Prime Minister Datuk Seri Najib Tun Razak said Malaysia looks forward to commence the Kuala Lumpur-Singapore High Speed Rail (HSR) project by next year to enable operations to start in 2026. Najib said Malaysian government-owned MyHSR Corp Sdn Bhd had started the land acquisition process for the project. (The Edge) Seacera Group Bhd has won a contract worth RM216mn to build the Rubber Research Institute of Malaya's centre of excellence in Selangor. Seacera said it accepted the letter of award from Koridor Padu Sdn Bhd pertaining to the sub-contract works for the construction of the centre, which will be located in Sungai Buloh. The project is expected to be completed by October 2019. (Bursa Malaysia / The Edge) YFG Bhd’s wholly-owned subsidiary YFG Engineering Sdn Bhd has bagged an RM200mn contract to construct apartment buildings in Perak. The project is expected to commence on a date to be notified in writing by Pierre Suite, and is to be completed within 36 months. (Bursa Malaysia / The Edge) Heitech Padu Bhd has secured three contracts to establish high voltage interconnection facilities for three solar power plants for a sum of RM75.2mn. The group said its subsidiary Duta Technic Sdn Bhd received the letters of award from Scatec Solar Solutions Malaysia Sdn Bhd — a unit of Scatec Solar ASA Norway — for the projects, which are located in Kedah, Melaka, and Terengganu. (Bursa Malaysia / The Edge) T7 Global Bhd, formerly Tanjung Offshore Bhd, is selling its entire equity stake in 7 New Market Street Holdings Ltd, which owns a 10-storey office block with 18 car park spaces in Birmingham, UK, for £5.75mn (RM32.2mn). According to T7, the disposal is expected to net it a gain of £1.7mn (RM9.7mn). (Bursa Malaysia / The Edge) United Malacca Bhd announced that it has inked a conditional agreement to gain a controlling interest on a plot of land in Central Sulawesi, Indonesia. It is taking up a 60% controlling interest in PT Wana Rindang Lestari (WRL) for US$7.2mn or RM30.3mn, which is now 99.96% owned by PT Bintang Gemilang Permai (BGP), with 0.04% held in another firm, PT Mahkota Nughara Permai. (Bursa Malaysia / The Edge) Mega First Corp Bhd will no longer profit from a China-based power generation subsidiary that accounted for 21% of its group earnings last year, as it is ending a Sino-foreign cooperative joint-venture agreement with Qixian Heat & Power Co Ltd. It told Bursa Malaysia that the 22-year agreement, in relation to 60%-owned Shaoxing Mega Heat & Power Co Ltd would not be extended when it expired on Oct 22, 2017. Mega First attributed this decision to the Chinese government’s ever-stricter environmental protection policies. (Bursa Malaysia / StarBiz) Page 3 of 8
6. 19-Oct-17 IOI Properties Group Bhd ’s unit Fortune Premiere Sdn Bhd's proposed RM3bn multicurrency Islamic medium-term notes programme has received a preliminary rating of AA by Malaysian Rating Corp with a stable outlook. The assigned rating applies only to ringgitdenominated notes under the multi-currency sukuk murabahah programme. (Bursa Malaysia / StarBiz) R&A Telecommunication Group Bhd, a Guidance Note 3 company, has received written requisitions from Nexgram Holdings Bhd and Francis Tan Hock Leong to convene an EGM for the removal and appointment of directors. The two shareholders, with combined shareholdings of not less than one-tenth of the paid-up capital of the company, are seeking to remove four directors and appoint three directors. (Bursa Malaysia / The Sun Daily) Willowglen MSC Bhd’s minority shareholders have been advised to reject a takeover offer of 80 sen a share as it is below the fair value ranging from 92 sen to RM1.01.The independent adviser Mercury Securities Bhd said the offer price was lower than and was at discount of 12 sen to 21 sen or 13.0% to 20.8% over the range of estimated fair value per share based on the discounted cashflow valuation method of 92 sen to RM1.01. (Bursa Malaysia / StarBiz) DiGi.Com Bhd recorded a 12% drop in net profit for the third quarter ended Sept 30, 2017 to RM384.6mn from RM438.4mn a year earlier, as the mobile telecommunication network provider's prepaid service revenue declined. Digi.Com also said its prepaid subscriber base shrank. For the first cumulative nine months of FY17, Digi.Com said net profit dropped to RM1.1bn from RM1.3bn a year earlier, while revenue came in lower at RM4.7bn compared with RM4.9bn. (Bursa Malaysia / The Edge) Page 4 of 8
7. 19-Oct-17 N e w s I n B r i e f Economy Asia Malaysia ’s Jobless Rate at 3.4% in August Malaysia’s unemployment rate for August stood at 3.4%, dropped 0.1 percentage point compared with the previous month, according to the Department of Statistics. The better performance in the labor market was due to healthy expansions in both labor force and employment by 1.4% year-on-year accordingly, coupled with a drop in unemployed persons from 519,000 in July to 517,000 in August. The labor force participation rate came in at 67.8% in August, up from 67.7% in the prior month. The seasonally adjusted jobless rate also dropped to 3.4% in August from 3.5% in the preceding month. Separately, Fuel prices are slightly higher across the board for the last week of October, with a one sen increase in the prices of RON95 and RON 97. RON95 saw an increase to RM2.17 from RM2.16 per litre while the price of RON97 priced at RM2.47 per litre from RM2.46 per litre. Additionally, the price of diesel went up by one sen from RM2.10 per litre previously to RM2.11 per litre. The new prices will come into effect from October 19 until October 25. The weekly fuel pricing mechanism came into effect in April this year and the prices of petrol and diesel had been placed on a managed monthly float system since Dec 1, 2014 following the removal of fuel subsidies. (The Star Online) BOJ's Sakurai Says Need to Stick With Current Easing Framework Bank of Japan board member Makoto Sakurai said it is important for the central bank to stick with its current framework for monetary easing because its effects will become stronger over time. Sakurai also said the BOJ should not easily change its 2% inflation target, because it is also used by other central banks. Sakurai made the comments in a speech to business leaders in Hakodate, northern Japan, according to a text posted on the BOJ's website. The BOJ has had to push back the timing for reaching its price target six times since it deployed its massive stimulus program in 2013. It now hopes consumer inflation will hit the 2 percent target by March 2020, but core consumer prices rose only 0.7% year-on-year in August. The BOJ's policy board next meets on Oct. 30-31, when it will update its consumer price forecasts. (The New York Times) September NODX Stuns Economists With Reversal Into Contraction After four months of solid expansion, Singapore's exports stunned economists with a 1.1% contraction in September, led by erstwhile star performer electronics. The fall was even more stark on a month-on-month basis, with the NODX tumbling by a seasonally adjusted 11%, reversing the previous month's 4.2% rise. The market did not see the drop coming after August's 16.7% surge, let alone the extent of it, with economists predicting a 12.7% expansion. Yet most of them take the September NODX dip as a sign that growth would ease in the months ahead, even if it has come sooner than some have thought. NODX exports to most of the top 10 markets also softened, with lower shipments to Hong Kong (minus 21%), the European Union (minus 8.9%) and Thailand (minus 9.1%). Asian markets contributed to most of NODX's gains last month, in particular Malaysia (+21.3%), China (+9.6%) and Japan (+18.1%). Yet, regional trading sentiment was weak, with non-oil reexports barely up at 0.5 per cent, a far cry from the 11.8% growth posted in August. Total export growth also eased in September to 3.8% from 15.1% in August, according to IE Singapore. Along with a 9.1% rise in imports, moderating from 15.8 % growth in the previous month, it kept overall trade expansion going last month, though slowing from a 15.4% rate in August to 6.2%. (Business Times) United States U.S. Housing Starts Fell in September U.S. housing starts decreased last month for the fifth time in six months, a sign home builders are struggling to keep pace with solid buyer demand. Housing starts fell 4.7% in September from the prior month to a seasonally adjusted annual rate of 1.127 million, the Commerce Department said. Residential building permits, which can signal how much construction is in Page 5 of 8
8. 19-Oct-17 the pipeline , fell 4.5% to an annual pace of 1.215 million last month. Economists surveyed by The Wall Street Journal had expected a 0.8% decrease for starts, while estimating that permits fell 5.4%. Housing-starts data are volatile from month to month and can be subject to large revisions. Looking beyond monthly volatility, starts in the first nine months of the year were up 3.1% from the same period in 2016. Permits during this period increased 5% from a year earlier. New residential construction reached a post-recession high in October 2016, but has eased slightly since and remains well below levels reached in the years preceding the 2008 financial crisis. Separately, the National Association of Home Builders said its index that measures confidence in the market for new single-family homes rose to 68 in October from 64 in September, slightly below the post-recession peak touched in March. (The Wall Street Journal) Fed’s Beige Book: Economic Activity Grows Despite Hurricanes Economic activity grew at a measured pace across the country in September and October, despite sector-wide disruptions caused by recent hurricanes in the Southern and Eastern U.S., according to a new report from the Federal Reserve. The pace of growth was split between moderate and modest among the Fed’s 12 districts, the central bank said Wednesday in its latest gathering of anecdotal information about regional economic conditions, known as the beige book. The report’s information was collected through Oct. 6. The growth occurred alongside Richmond, Atlanta and Dallas districts reporting major disruptions from hurricanes that hit their areas. Dallas experienced an increase in auto sales because of storm-damaged vehicles and Richmond saw heightened manufacturing prices, particularly some raw materials. The Atlanta district reported hurricane-related effects on its energy, agriculture and tourism sectors. (The Wall Street Journal) U.S. Industrial Production Rose Modestly in September U.S. industrial output picked up modestly in September, a sign a key sector of the economy is weathering the hurricane-related disruption that hit the prior month. Industrial production—a measure of output at factories, mines and utilities—increased a seasonally adjusted 0.3% in September from the prior month. The reading was in line with economists’ expectations. The report estimated Hurricanes Harvey and Irma held down the growth in total industrial production in September by 0.25 percentage point. A decline in industrial production in August was revised upward, suggesting storm-related disruptions were less severe than initially reported. Production slipped 0.7% that month instead of the first estimate of 0.9%. Industrial output was up 1.6% on the year to September. Capacity utilization, reflecting how much industries are producing relative to their potential output, rose by 0.2 percentage point to 76.0% in September; economists had expected 76.3%. Output at U.S. factories rose 0.1% in September and mining output increased 0.4%. Utility production rose 1.5%. (The Wall Street Journal) US Import Prices Rose 0.7% in Sept vs. 0.6% Increase Expected U.S. import prices for September recorded their biggest increase in more than a year amid rising petroleum and food costs, but underlying imported inflation remained modest. The Labor Department said that import prices jumped 0.7% last month, the biggest gain since June 2016, after an unrevised 0.6% rise in August. Economists polled by Reuters had forecast import prices increasing 0.5% in September. In the 12 months through September, import prices climbed 2.7% after advancing 2.1% in August. The year-on-year rise in import prices peaked at 4.7% in February, which was the biggest advance in five years. U.S. financial markets were little moved by the data. (Reuters) Europe and Uni ted Kingdom UK Jobless Rate at 42-Year Low Amid Strong Labor Demand The U.K. jobless rate held at a 42-year low in the three months through August as Britain enjoyed near-record employment, according the figures published. The latest snapshot of the labor market from the Office for National Statistics (ONS) may help to explain why the Bank of England (BOE) appears to be edging toward its first interest-rate increase for a decade. In evidence to lawmakers, BOE Governor Mark Carney made clear that the erosion Page 6 of 8
9. 19-Oct-17 of slack in the economy is the primary concern as policy makers prepare for their Nov . 2 meeting. He said a rate increase would probably be needed in the “coming months,” repeating the recent signal from the bank. Wage growth was little changed at just over 2% - well behind the rate of inflation -- but officials are signaling they are no longer prepared to wait for a pickup before tightening policy. The jobless rate stood at 4.3% in the latest period, staying below the BOE’s 4.5% “equilibrium” rate below which inflationary pressures start to build. The number of people looking for work fell 52,000 to 1.44 million, the lowest since 2005. Employment rose 94,000 from May to 32.1 million. At 75.1%, the employment rate is just below the record 75.3% recorded between May and July. The number of vacancies stood at close to a record high. (Bloomberg) UK Inflation Hits Five-Year High of 3% Inflation rose to a five-year high of 3% in September, far outstripping wage increases, the latest official figures show. The Consumer Price Index (CPI) rose 0.1% from August to September to their highest since April 2012, increasing the likelihood that the Bank of England will raise its benchmark interest rate from 0.25% next month. Consumers face rising costs for essentials, with food and transport prices driving rising inflation, the ONS said. Wages rose at an annual rate of 2.1% in the three months to July, meaning workers are seeing the value of their pay packets decrease in real terms. Businesses are also facing a squeeze as Retail Price Index inflation, which will be used to set business rates next year, was 3.9% in September. Inflation has risen sharply since the Brexit vote in June last year as the value of the pound has fallen against other major currencies, causing the prices of imports to rise. (The Independent, RTT News) UK’s House Prices Rise 5% a Year in More Bad News For Would-Be Buyers The rate of house price growth increased to 5% in August, according to official government figures, pushing homes further out of the reach of aspiring young buyers already squeezed by rising inflation. The average UK house price rose by GBP1,000 in August to reach GBP 226,000, the ONS said. The increase took the annualized rate of house price inflation to 5.0%, up from 4.5% in July and more than double the rate of pay settlements across the country. The biggest increase in prices was in the northwest of England, where values were up 6.5% in the year to August 2017. The east of England, east Midlands and southwest all saw rises of 6.4%. As price rises have slowed to a crawl in London, which had the lowest regional increase with a gain of 2.6%. Prices in the City of London, the heart of the capital’s financial district, fell by 5.6% over the year, the biggest fall in the UK apart from Aberdeenshire. While the low oil price has hit communities dependent on the North Sea oil industry, Brexit is believed to have affected prices in the capital. (The Guardian) Low ECB Rates an Opportunity to Reform, Draghi Argues Easy monetary policy gives euro zone governments a window of opportunity to enact the reforms needed to boost growth once interest rates have to rise, European Central Bank President Mario Draghi said. “ECB research finds no convincing evidence that high interest rates lead to more reforms,” Draghi told a conference in Frankfurt. “In fact, the opposite is more likely to be true: lower rates tend to promote reforms, since they lead to a better macroeconomic environment.” “With monetary policy being accommodative, we now have a window of opportunity to take these measures,” Draghi added. (Reuters) Eurozone Inflation Steady at 1.5% Eurozone inflation held steady in September, as initially estimated, final data from Eurostat showed. Inflation came in at 1.5% in September, the same rate as seen in August. Inflation continues to stay well below the European Central Bank's target of below, but close to 2%. Month-on-month, consumer prices climbed 0.4% in September. Core inflation that excludes energy, food, alcohol and tobacco, eased marginally to 1.1% from 1.2% in the previous month. Page 7 of 8
10. 19-Oct-17 Core inflation figure also matched the flash estimate published on September 29 . (RTT News) German Economic Confidence Strengthens In October Germany's economic confidence continued to improve in October, survey data from the Mannheim-based Centre for European Economic Research (ZEW) showed. The ZEW Indicator of Economic Sentiment rose to 17.6 in October from 17.0 in the previous month. Nonetheless, the indicator still remained below the long-term average of 23.8 and the expected level of 20. At the same time, the indicator for current situation fell unexpectedly by 0.9 points to 87.0 points in October. The score was forecast to rise to 88.5. The financial market experts' sentiment concerning the economic development of the Eurozone decreased considerably. The economic confidence indicator for the currency bloc dropped 5.0 points to 26.7 points in October. In contrast, the indicator for the current economic situation climbed 1.0 point to a level of 36.5 points. (RTT News) Share Buy-Back: 17 October 2017 Company Bought Back Price (RM) Hi/Lo (RM) 0.80 1.56/1.53 1.12/1.11 0.94/0.93 1.04/1.03 0.805/0.795 1.57/1.52 1.12/1.10 0.94/0.925 1.04/1.03 AMPROP 30,000 E&O 220,000 ENGTEX 100,000 TROP 133,800 UNIMECH 8,500 Source: Bursa Malaysia Total Treasury Shares 15,303,800 7,147,547 3,136,100 6,440,942 5,875,510 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 – 2031 6608 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 17-Oct-17 AUTOMOBILE BAUTO 2.09 2.40 0.96 10.3 16.1 20.2 13.0 5.6 7.7 2.32 -9.9 1.84 13.6 -1.9 MBMR 2.05 2.09 0.93 20.7 23.2 9.9 8.8 2.0 2.3 2.65 -22.6 2.02 1.5 -4.2 PECCA 1.46 1.69 na 7.8 11.1 18.7 13.2 3.4 3.8 1.94 -24.7 1.45 0.7 -8.2 UMW 5.56 5.04 1.30 19.7 30.6 28.2 18.1 2.3 3.6 6.08 -8.6 4.09 35.8 31.7 4.3 BANKS & FINANCIAL SERVICES ABMB 3.88 4.80 1.30 33.1 30.6 11.7 12.7 4.1 4.1 4.49 -13.6 3.60 7.8 AFFIN 2.58 3.00 0.89 27.6 27.9 9.4 9.3 3.1 3.1 3.00 -14.0 2.14 20.6 7.9 AMBANK 4.50 5.70 1.18 43.9 48.6 10.2 9.3 3.9 4.0 5.70 -21.1 3.90 15.4 4.4 CIMB 6.15 8.00 1.51 49.6 55.2 12.4 11.1 4.1 4.5 7.08 -13.1 4.49 37.0 36.4 HLBANK 16.00 17.50 0.60 104.9 114.2 15.3 14.0 2.8 2.8 16.30 -1.8 12.80 25.0 18.5 MAYBANK 9.42 10.20 0.98 69.6 75.9 13.5 12.4 5.3 5.3 9.86 -4.5 7.59 24.1 14.9 PBBANK 20.46 23.60 0.64 137.2 142.4 14.9 14.4 2.7 2.8 20.90 -2.1 19.40 5.5 3.8 RHBBANK 5.10 5.80 1.36 50.6 55.0 10.1 9.3 2.9 2.9 5.59 -8.8 4.58 11.4 8.3 BURSA 10.00 11.10 0.71 40.2 39.0 24.9 25.7 3.4 3.4 10.98 -8.9 8.08 23.7 14.7 CONSTRUCTION BPURI 0.38 0.38 0.66 4.7 4.6 8.1 8.3 0.0 0.0 0.51 -25.5 0.33 16.9 -12.6 GADANG 1.21 1.75 0.24 15.3 14.3 7.9 8.5 2.5 2.5 1.37 -11.7 0.89 36.7 15.2 GAMUDA 5.18 6.00 1.00 27.8 34.5 18.6 15.0 2.3 2.3 5.52 -6.2 4.65 11.4 8.4 IJM 3.30 3.50 0.87 15.3 20.2 21.6 16.3 2.3 2.9 3.61 -8.6 3.07 7.5 3.1 PESONA 0.54 0.78 0.91 4.9 5.7 10.9 9.5 4.6 4.6 0.74 -26.5 0.42 28.6 -10.7 SENDAI 0.90 0.58 1.36 8.2 9.6 10.9 9.4 1.1 1.1 1.39 -35.3 0.47 91.5 56.5 SUNCON 2.30 2.65 na 12.7 14.7 18.2 15.6 2.4 2.4 2.43 -5.3 1.56 47.4 35.3 WCT 1.60 1.61 0.92 11.5 12.5 13.9 12.8 1.9 1.9 2.48 -35.4 1.59 0.6 -7.0 LITRAK 5.80 6.26 0.35 41.9 45.7 13.8 12.7 4.3 4.3 6.15 -5.7 5.57 4.1 -1.4 ANNJOO 3.70 4.40 1.20 41.3 45.5 9.0 8.1 5.6 5.9 3.86 -4.1 1.96 88.8 70.5 CHINHIN 1.30 1.58 na 8.3 11.3 15.7 11.5 3.1 4.6 1.49 -12.8 0.85 53.8 49.4 WTHORSE 1.96 1.67 0.39 6.7 10.0 29.2 19.7 5.1 5.1 2.19 -10.5 1.92 2.1 -2.5 CARLSBG 15.06 18.06 0.56 79.3 86.2 19.0 17.5 5.2 5.7 15.30 -1.6 13.72 9.8 8.2 HEIM 18.68 19.14 0.45 79.6 84.0 23.5 22.2 3.8 4.0 19.58 -4.6 15.56 20.1 14.0 AEON 2.01 2.23 0.45 6.5 7.5 30.8 26.7 2.0 2.4 2.86 -29.7 1.95 3.1 -21.8 AMWAY 7.20 8.62 0.32 30.6 38.7 23.5 18.6 4.5 4.9 8.18 -12.0 7.05 2.1 -1.8 F&N 24.90 27.41 0.21 121.1 150.9 20.6 16.5 2.8 3.0 26.00 -4.2 22.44 11.0 6.0 HUPSENG 1.17 1.50 0.36 6.5 6.6 18.0 17.7 5.1 5.1 1.28 -8.6 1.13 3.4 1.7 NESTLE 85.80 92.76 0.41 292.7 325.4 29.3 26.4 3.2 3.3 86.00 -0.2 74.12 15.8 9.7 81.1 Building Materials CONSUMER Brewery Retail PADINI 4.60 4.67 0.46 23.5 28.0 19.6 16.4 2.5 2.7 4.80 -4.2 2.26 103.5 POHUAT 1.90 2.46 0.74 27.4 27.4 6.9 6.9 3.2 4.2 2.06 -7.8 1.53 24.2 9.8 QL 3.86 3.26 0.39 12.1 12.8 32.0 30.1 1.1 1.2 4.03 -4.2 3.26 18.6 15.9 SIGN 0.89 1.23 0.85 8.9 12.1 10.0 7.3 2.8 3.9 1.07 -16.8 0.78 14.1 11.9 42.72 52.08 1.22 198.6 187.4 21.5 22.8 4.7 4.7 51.04 -16.3 40.61 5.2 -3.3 GENTING 9.65 11.51 1.47 44.7 53.3 21.6 18.1 1.5 1.7 10.00 -3.5 7.50 28.7 21.5 GENM 5.32 6.53 1.49 22.0 28.4 24.2 18.7 1.5 1.7 6.38 -16.6 4.42 20.4 17.7 BJTOTO 2.46 3.34 0.84 18.4 21.6 13.4 11.4 5.7 6.5 3.30 -25.5 2.25 9.3 -16.9 LUSTER 0.13 0.15 2.11 0.4 0.3 35.6 35.9 0.0 0.0 0.16 -21.9 0.05 150.0 150.0 IHH 5.80 6.41 0.74 7.9 13.1 73.1 44.3 0.6 0.6 6.60 -12.1 5.54 4.7 -8.7 KPJ 1.03 1.17 0.41 3.3 4.1 31.1 25.4 6.0 7.3 1.14 -9.6 0.96 7.0 -1.4 HARTA 7.68 6.87 0.61 17.1 24.6 44.8 31.3 1.1 1.4 7.73 -0.6 4.53 69.5 59.0 KOSSAN 7.12 7.35 0.10 33.9 40.0 21.0 17.8 2.4 2.8 7.36 -3.3 5.62 26.7 8.0 SUPERMX 1.83 1.80 0.33 10.6 15.2 17.3 12.1 1.8 2.5 2.38 -23.1 1.69 8.3 -13.3 TOPGLOV 6.33 6.00 -0.29 26.4 29.4 24.0 21.5 2.3 2.3 6.47 -2.2 4.56 38.8 18.3 KAREX 1.60 1.60 0.26 2.8 4.6 57.4 34.5 1.3 0.7 2.62 -38.9 1.37 16.8 -32.2 SCIENTX 8.97 9.38 0.40 52.3 64.9 17.2 13.8 1.8 2.0 9.85 -8.9 6.50 38.0 33.9 SKPRES 1.77 1.75 0.55 8.3 10.4 21.4 17.1 2.3 2.9 1.77 0.0 1.24 42.7 37.2 ASTRO 2.80 3.40 1.21 13.2 14.6 21.1 19.2 4.5 4.6 2.94 -4.8 2.47 13.4 7.7 MEDIA PRIMA 0.84 0.60 0.36 0.9 2.8 98.5 29.8 0.8 2.7 1.33 -36.8 0.66 28.2 -27.0 STAR 1.69 1.00 0.62 3.3 4.0 51.0 41.8 24.9 10.7 2.22 -23.8 1.63 3.7 -13.2 Tobacco BAT GAMING Casino NFO HEALTHCARE Hospitals 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 0.48 0.75 1.20 3.6 4.5 13.1 10.5 2.1 2.1 0.69 -31.2 0.23 111.1 86.3 LCTITAN 5.35 6.88 na 44.1 65.0 12.1 8.2 3.4 6.0 6.53 -18.1 4.14 29.2 -17.7 -18.6 MHB 0.75 0.78 1.65 -2.0 -0.5 na na 0.0 0.0 1.16 -35.8 0.63 19.2 MISC 7.19 6.56 1.02 56.3 46.9 12.8 15.3 4.2 4.2 7.90 -9.0 7.03 2.3 -2.2 PANTECH 0.71 0.69 1.12 4.0 6.1 17.7 11.5 2.6 3.9 0.71 -0.7 0.44 62.1 58.4 PCHEM 7.33 7.62 1.01 44.3 44.7 16.5 16.4 2.6 2.7 7.80 -6.0 6.54 12.1 5.0 SENERGY 1.48 1.66 2.68 6.6 -0.4 22.4 na 0.7 0.0 2.10 -29.5 1.33 11.3 -8.6 SERBADK 2.70 2.77 na 22.1 25.2 12.2 10.7 2.5 2.8 2.76 -2.2 1.51 78.8 80.0 UMWOG 0.30 0.80 1.61 -12.0 -3.5 na na 0.0 0.0 0.92 -68.0 0.27 7.9 -65.5 -17.6 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.40 1.55 1.23 FGV 1.81 1.52 1.85 IJMPLNT 2.85 3.58 0.37 IOICORP 4.54 4.14 1.28 KFIMA 1.70 1.89 0.50 KLK 24.10 26.18 0.80 11.3 12.3 12.4 11.4 0.0 0.0 1.98 -29.3 1.28 9.4 1.0 2.5 183.1 71.1 2.8 2.8 2.39 -24.3 1.42 27.5 16.8 12.3 14.1 23.2 20.3 2.5 2.8 3.70 -23.0 2.84 0.4 -16.2 17.3 21.0 26.2 21.6 2.1 3.5 4.81 -5.6 4.30 5.6 3.2 19.9 13.3 8.5 12.8 5.3 5.3 1.96 -13.3 1.65 3.0 0.0 103.4 120.4 23.3 20.0 2.1 2.5 25.50 -5.5 23.00 4.8 0.4 PLANTATIONS SIME 9.07 9.80 1.48 34.2 37.3 26.5 24.3 2.5 2.5 9.70 -6.5 7.84 15.7 12.0 UMCCA 6.55 7.52 0.42 37.5 31.8 17.5 20.6 3.5 2.6 6.83 -4.1 5.50 19.0 9.7 GLOMAC 0.64 0.60 0.52 1.4 5.0 44.2 12.7 4.3 4.2 0.80 -20.0 0.61 4.9 -7.9 HUAYANG 0.82 0.96 0.58 17.3 10.2 4.7 8.0 4.9 2.5 1.30 -37.3 0.80 1.9 -27.9 IBRACO 0.88 0.94 na 3.3 10.5 27.0 8.4 2.3 4.5 1.05 -16.2 0.76 16.6 -12.0 IOIPG 1.98 2.23 1.04 18.9 16.9 10.5 11.7 3.0 3.0 2.36 -16.0 1.85 7.2 1.6 MAHSING 1.56 1.76 0.95 14.3 13.5 10.9 11.5 4.2 4.2 1.65 -5.5 1.34 16.4 9.1 SNTORIA 0.78 0.98 0.27 6.2 10.3 12.6 7.5 1.3 1.3 1.00 -22.5 0.69 12.3 -3.1 PROPERTY Note: SNTORIA proposed bonus issue of warrants & right issue of shares. For more details please refer to 25.09.17 report. SPB 4.68 5.98 0.54 25.6 22.8 13.5 15.1 2.6 2.6 5.19 -9.8 4.32 8.3 5.9 SPSETIA 3.45 4.10 0.91 11.6 12.5 14.1 13.2 4.1 4.1 4.50 -23.3 3.10 11.3 10.2 SUNWAY 1.64 1.78 0.63 15.8 15.3 12.5 12.9 3.0 3.0 1.96 -16.3 1.24 32.4 27.6 SUNREIT 1.71 1.86 0.69 9.2 10.0 18.5 17.0 5.4 5.9 1.84 -7.1 1.63 4.9 -0.6 CMMT 1.45 1.72 0.41 8.1 8.6 17.9 16.8 5.8 6.2 1.72 -15.7 1.40 3.6 -5.2 -25.5 REIT POWER & UTILITIES MALAKOF 1.02 1.22 0.66 6.8 6.9 14.9 14.9 6.9 6.9 1.67 -38.9 1.00 2.5 PETDAG 24.28 21.47 0.71 98.2 102.3 24.7 23.7 3.0 3.1 25.70 -5.5 23.00 5.6 2.0 PETGAS 18.50 19.37 0.86 87.6 100.1 21.1 18.5 3.4 3.8 22.28 -17.0 17.80 3.9 -13.1 TENAGA 14.28 17.38 0.77 131.8 130.4 10.8 10.9 3.1 3.2 14.80 -3.5 13.00 9.8 2.7 YTLPOWR 1.40 1.40 0.77 8.4 11.4 16.7 12.2 3.6 3.6 1.64 -14.6 1.36 2.9 -6.0 9.7 TELECOMMUNICATIONS AXIATA 5.18 5.40 1.29 15.7 16.9 33.1 30.6 1.5 1.6 5.40 -4.1 4.11 26.0 DIGI 4.89 5.20 0.84 19.5 20.0 25.0 24.5 4.0 4.1 5.19 -5.8 4.63 5.6 1.2 MAXIS 5.76 5.85 0.72 24.5 24.7 23.5 23.3 3.5 3.5 6.60 -12.7 5.48 5.1 -3.7 TM 6.15 7.20 0.63 22.6 23.2 27.2 26.5 3.3 3.4 6.75 -8.9 5.81 5.9 3.4 ELSOFT 2.54 3.00 0.54 11.3 14.1 22.5 18.0 3.1 3.9 2.95 -13.9 1.27 100.7 80.9 IRIS 0.18 0.25 1.59 -1.3 0.6 na 31.6 0.0 0.0 0.22 -20.5 0.10 75.0 59.1 INARI 2.76 2.75 0.85 11.3 13.0 24.5 21.2 3.6 3.3 2.82 -2.1 1.59 73.2 66.6 MPI 14.00 15.40 0.14 89.5 110.2 15.7 12.7 1.9 1.9 14.52 -3.6 7.20 94.4 88.9 UNISEM 4.02 4.30 0.67 26.9 32.1 14.9 12.5 3.0 3.0 4.25 -5.4 2.27 77.1 70.3 TECHNOLOGY Semiconductor & Electronics TRANSPORTATION Airlines AIRASIA 3.44 3.76 0.95 44.0 37.6 7.8 9.1 1.2 1.5 3.59 -4.2 2.16 59.3 50.2 AIRPORT 8.40 8.10 1.22 17.3 17.7 48.4 47.5 1.2 1.2 9.45 -11.1 5.91 42.1 38.6 120.0 Freight & Tankers PTRANS 0.32 0.44 na 2.1 2.3 15.6 14.0 1.9 2.1 0.38 -16.2 0.14 127.1 TNLOGIS 1.52 1.80 0.92 12.0 13.6 12.6 11.2 2.8 3.3 1.83 -17.1 1.48 2.7 -2.5 WPRTS 3.80 4.05 0.78 17.1 15.1 22.2 25.1 3.4 3.0 4.45 -14.6 3.58 6.1 -11.6 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 21.51 23.30 1.23 172.9 189.2 12.4 11.4 2.8 2.8 22.3 -3.3 14.80 45.3 OCBC 11.50 12.00 1.20 87.7 92.4 13.1 12.5 5.7 6.7 11.6 -0.7 8.84 38.1 24.0 28.9 UOB 24.08 25.40 1.05 192.9 206.5 12.5 11.7 2.9 2.9 24.6 -2.1 17.98 33.9 18.0 PLANTATIONS WILMAR 3.36 3.72 0.86 28.9 31.1 11.6 10.8 2.4 2.7 4.0 -16.0 3.08 9.1 -6.4 IFAR 0.46 0.53 1.04 4.9 5.2 9.4 8.8 2.6 2.8 0.6 -23.5 0.44 4.6 -13.3 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. SECTOR UPDATE Thursday , October 19, 2017 FBMKLCI: 1,748.99 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Underweight Automotive Sector (Maintained) Nationals Post 10-Year Low Abel Goon Tel: +603-2072 1277 ext. 1641 abelgoon@ta.com.my www.taonline.com.my Steep MoM Decline Total Industry Volume (TIV) in September came in at 41.0k units (MoM: -20.8%, YoY: -14.8%). MAA attributed the decline in sales to a short working month as there were 4 public holidays in September. We believe the overflow in August due to the e-daftar system failure, exacerbated the MoM decline. Meanwhile, the YoY decline was mainly due to a high base effect as monthly sales volume in 2H16 consistently registered >45k sales. We expect TIV to remain flattish until the impending launch of the 3rd Gen Myvi. This is underpinned by persistently stringent hire purchase (HP) loan requirements. YTD TIV of 425.7k units (+1.8%) is still within expectations. and constitutes 72.6% and 72.2% of ours and MAA’s forecast respectively. We expect a seasonal sales spike in Dec, which is the prevailing trend in the industry. Poor Showing from Nationals National marques registered massive declines (MoM: -24.8%, YoY: -18.8%) in September with only 18.9k units sold. Poor showings from Proton (MoM: -30.3%, YoY: -25.8%) and Perodua (MoM: -22.9%, YoY: -16.3%) caused monthly national sales to fall to a 10-year low. Its TIV market share fell to 46.0% which is the lowest in 2017. In our opinion, nationals would be the hardest hit by stringent HP loan requirements. We expect national sales to pick up on the back of a new Myvi launch by the end of this year. BMW and VW Bucks Trend BMW (MoM: +9.5%, YoY: +19.3%) and VW (MoM: +9.8%, YoY: +85.7%) bucked the monthly decline posted by the remaining marques. BMW set a record registering 1k units in sales volume in September. We believe this is mainly due to: 1) attractive discounts, 2) lowered prices, and 3) BMW clients are typically less impacted by stringent HP loan requirements. Meanwhile, VW sales likely posted commendable growth due to the Volkswagen Fest in Setia City Convention Centre held in Aug. We believe registration for the sold cars in Aug may have overflowed to September. To recap, VW posted 53.7% MoM growth in August. Mazda Sales to Rebound in October Mazda’s sales volume (MoM: -9.2%, YoY: -28.6%) in September was lacklustre as the CX-5 run-out programme continued. Furthermore, we understand that there are some supply issues for its 2nd most popular model, Mazda 3. That said, we are expecting a significant rebound in Mazda sales in October mainly due to the launch of its all-new CX-5 in 11 October. The new CX-5 is offered in five variants, priced at about the same price as the old CX-5, and was awarded good reviews by popular automobile websites. Note that the premium colours, Soul Red Crystal, Machine Gray and Snowflake Pearl White constitutes 70% of the new CX-5’s bookings. Maintain Underweight We maintain our Underweight stance on the industry and our 2017 TIV forecast of 586.5k units (+1.1% YoY). Our forecast reflects a slight recovery in TIV as we anticipate consumers will yield to attractive packages and product offerings. Furthermore, new models, such as the all-new Mazda CX-5, and a possible 3rd Gen Myvi, will excite the market. On the other hand, TIV growth will be partially dampened by sustained stringent HP loan requirements. BAuto and Pecca are rated as Buy with TP of RM2.40 and RM1.69 Page 1 of 6
14. 19-Oct-17 respectively due to handsome dividends and potential earnings growth . Meanwhile, MBM Resources and UMW are rated as Sell with TP of RM2.09 and RM5.04 respectively. Figure 1: Breakdown of TIV Passenger Commercial TIV Source: MAA, TA Research Sep-16 42,644 5,481 48,125 Aug-17 46,010 5,710 51,720 Sep-17 36,517 4,464 40,981 % MoM (20.6) (21.8) (20.8) % YoY (14.4) (18.6) (14.8) 9M2016 370,909 47,401 418,310 9M2017 381,800 43,910 425,710 % YoY 2.9 (7.4) 1.8 Figure 2: Breakdown of TIV by segments Passenger vehicles National Perodua Proton Total Sep-16 Aug-17 Sep-17 17,147 6,062 23,209 18,630 6,452 25,082 14,355 4,498 18,853 Non-national BMW Mercedes Honda Nissan Toyota Mazda VW Others Total 840 1,171 7,498 2,407 3,864 1,009 406 2,240 19,435 915 1,185 9,733 1,904 3,717 772 687 2,015 20,928 Grand Total 42,644 Commercial vehicles Hino Isuzu Mitsubishi Nissan Toyota Mazda Others Total Source: MAA, TA Research Sep-16 339 993 638 642 1,816 11 1,042 5,481 % MoM % YoY 9M2016 9M2017 % YoY (22.9) (30.3) (24.8) (16.3) (25.8) (18.8) 150,889 50,091 200,980 151,580 56,297 207,877 0.5 12.4 3.4 1,002 945 7,906 1,584 2,862 699 754 1,912 17,664 9.5 (20.3) (18.8) (16.8) (23.0) (9.5) 9.8 (5.1) (15.6) 19.3 (19.3) 5.4 (34.2) (25.9) (30.7) 85.7 (14.6) (9.1) 6,295 9,061 63,262 25,117 30,520 9,830 5,436 20,408 169,929 7,633 8,790 78,742 15,644 34,288 6,821 4,605 17,400 173,923 21.3 (3.0) 24.5 (37.7) 12.3 (30.6) (15.3) (14.7) 2.4 46,010 36,517 (20.6) (14.4) 370,909 381,800 2.9 Aug-17 473 1,026 634 647 1,988 30 912 5,710 Sep-17 468 812 390 569 1,486 29 710 4,464 % MoM (1.1) (20.9) (38.5) (12.1) (25.3) (3.3) (22.1) (21.8) % YoY 38.1 (18.2) (38.9) (11.4) (18.2) 163.6 (31.9) (18.6) 9M2016 3,575 9,017 5,911 5,281 14,000 254 9,363 47,401 9M2017 3,455 7,942 4,797 5,115 15,031 181 7,389 43,910 % YoY (3.4) (11.9) (18.8) (3.1) 7.4 (28.7) (21.1) (7.4) Figure 3: Breakdown by main manufacturers/distributors UMW Toyota (Passenger cars) Lexus Toyota (Commercial) Total Perodua Grand total Sep-16 3,864 120 1,816 5,800 17,147 22,947 Aug-17 3,717 86 1,988 5,791 18,630 24,421 Sep-17 2,862 72 1,486 4,420 14,355 18,775 % MoM (23.0) (16.3) (25.3) (23.7) (22.9) (23.1) % YoY (25.9) (40.0) (18.2) (23.8) (16.3) (18.2) 9M2016 30,520 965 14,000 45,485 150,889 196,374 9M2017 34,288 650 15,031 49,969 151,580 201,549 % YoY 12.3 (32.6) 7.4 9.9 0.5 2.6 Tan Chong Nissan (Passenger cars) Renault Nissan (Commercial) Total Sep-16 2,407 84 642 3,133 Aug-17 1,904 64 647 2,615 Sep-17 1,584 24 569 2,177 % MoM (16.8) (62.5) (12.1) (16.7) % YoY (34.2) (71.4) (11.4) (30.5) 9M2016 25,117 466 5,281 30,864 9M2017 15,644 433 5,115 21,192 % YoY (37.7) (7.1) (3.1) (31.3) Bermaz Auto Mazda (Passenger cars) Mazda (Commercial) Total Sep-16 1,009 11 1,020 Aug-17 772 30 802 Sep-17 699 29 728 % MoM (9.5) (3.3) (9.2) % YoY (30.7) 163.6 (28.6) 9M2016 9,830 254 10,084 9M2017 6,821 181 7,002 % YoY (30.6) (28.7) (30.6) MBM Resources VW Volvo Mitsubishi Hino Daihatsu Total Source: MAA, TA Research Sep-16 406 110 638 339 71 1,564 Aug-17 687 103 634 473 70 1,967 Sep-17 754 78 390 468 71 1,761 % MoM 9.8 (24.3) (38.5) (1.1) 1.4 (10.5) % YoY 85.7 (29.1) (38.9) 38.1 0.0 12.6 9M2016 5,436 577 5,911 3,575 708 16,207 9M2017 4,605 644 4,797 3,455 536 14,037 % YoY (15.3) 11.6 (18.8) (3.4) (24.3) (13.4) Page 2 of 6
15. Jan-11 Mar-14 Sep-14 Sep-17 Jul-17 Apr-17 Jan-17 Oct-16 Jul-16 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Oct-14 Jan-14 Sep-17 Jul-17 May-17 Mar-17 Jan-17 Nov-16 Sep-16 Jul-16 May-16 Mar-16 Jan-16 Nov-15 Sep-15 Jul-15 May-15 Mar-15 Jan-15 Nov-14 Sep-14 Jul-14 May-14 Mar-14 YoY Growth (RHS) Jul-17 May-17 Mar-17 Others Jan-17 Nov-16 Sep-16 Jul-16 May-16 Honda Mar-16 Jan-16 Nov-15 Sep-15 Jul-15 Nissan May-15 Mar-15 Jan-15 Toyota Nov-14 Jul-14 National Jul-14 Apr-14 Jan-14 Nov-13 TIV (LHS) May-14 Perodua Jan-14 Oct-13 Sep-13 Jul-13 May-13 Mar-13 Jan-13 Nov-12 Sep-12 Jul-12 May-12 Mar-12 Jan-12 Nov-11 Sep-11 Jul-11 May-11 unit Nov-13 Jul-13 Apr-13 Jan-13 Jan-11 Mar-11 80,000 Sep-13 Jul-13 May-13 Proton Mar-13 Oct-12 Jul-12 Apr-12 Jan-12 Oct-11 Jul-11 Apr-11 Jan-11 70% Jan-13 Nov-12 Sep-12 Jul-12 May-12 % 45 Mar-12 Jan-12 Nov-11 Sep-11 Jul-11 May-11 Mar-11 19-Oct-17 Figure 4: TIV vs. YoY growth 40% 70,000 30% 60,000 20% 50,000 10% 40,000 0% 30,000 -10% 20,000 -20% 10,000 -30% 0 -40% Source: MAA, TA Research Figure 5: Passenger Vehicle Market Share (National vs. non-national manufacturers) 75% Non-National 65% 60% 55% 50% 45% 40% 35% 30% Source: MAA, TA Research Figure 6: Total Market Share by Brand Mazda 40 35 30 25 20 15 10 5 0 Source: MAA, TA Research Page 3 of 6
16. 19-Oct-17 Figure 7 : TIV (MoM change) Jan + + + - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Feb + + - Mar + + + + + + + + + + + + + + *+ : increase, - : decrease Apr + - May + + + + + + + + + Jun + + + + + + + + + + - Jul + + + + + + + + + - Aug + + + + + + + Sep + + + + - Oct + + + + + + + - Nov + + + + + + Dec + + + + + + + + + + Hari Raya Month Source: MAA, TA Research Figure 8: Cumulative Sales Volume (YoY growth) 9M17 8M17 Figure 9: TIV On Half Year Basis (unit) 7M17 1H 350,000 24% 27% 29% Honda 300,000 -32% Nissan -32% -34% 250,000 200,000 11% Toyota 16% 22% 150,000 0% 3% 5% Perodua 100,000 12% Proton 50,000 18% 15% -40% -30% -20% -10% 0% 10% 20% 30% 0 40% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: MAA, TA Research Figure 10: Monthly Sales Volume by Brand (unit) Figure 11: Market share (%) 18,000 16,000 Aug-17 Sep-17 % 40 Sep-17 30 6.3 4.9 5.3 10 2,000 15.6 18.8 19.3 11.8 11.0 10.6 15 12.6 12.5 11.0 7,669 7,847 6,993 20 2.1 1.6 1.8 7,498 9,733 7,906 25 1,020 802 728 4,000 3,049 2,551 2,153 5,680 5,705 4,348 6,062 6,452 4,498 12,000 6,000 Aug-17 35 14,000 8,000 Sep-16 35.6 36.0 35.0 20,000 Sep-16 14,355 17,147 18,630 Source: MAA, TA Research 10,000 2H 5 0 0 Proton Perodua Source: MAA, TA Research Toyota Nissan Honda Mazda Others Proton Perodua Toyota Nissan Honda Mazda Source: MAA, TA Research Page 4 of 6
17. 19-Oct-17 9M2017 9M2016 % 35 120,000 30 20,000 10.6 11.6 15 12.0 13.2 20 7.3 4.9 40,000 25 10 10,084 7,002 60,000 30,398 20,759 80,000 44,520 49,319 50,091 56,297 100,000 69,066 62,011 63,262 78,742 140,000 9M2017 16.5 14.6 40 2.4 1.6 9M2016 36.1 35.6 160,000 Figure 13: YTD Market Share (%) 15.1 18.5 150,889 151,580 Figure 12: YTD Sales Volume Breakdown by Brand (unit) 5 0 0 Proton Perodua Toyota Nissan Honda Mazda Perodua Toyota Nissan Honda Mazda Others Others Source: MAA, TA Research Source: MAA, TA Research Figure 14: National vs. Non-national (Sales Volume) Figure 15: National vs. Non-national (Market share) Non-National National Source: MAA, TA Research Jan-17 M ay-17 S ep-16 Jan-16 M ay-16 S ep-15 Jan-15 M ay-15 S ep-14 Jan-14 M ay-14 S ep-13 Jan-13 M ay-13 Jan-11 Sep-17 Jan-17 May-17 Sep-16 Jan-16 May-16 Sep-15 Jan-15 May-15 Sep-14 Jan-14 May-14 Sep-13 Jan-13 May-13 Sep-12 Jan-12 May-12 Sep-11 Jan-11 15,000 S ep-12 20,000 Jan-12 25,000 M ay-12 30,000 S ep-11 35,000 May-11 Non-National 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 40,000 M ay-11 National 45,000 S ep-17 Proton Source: MAA, TA Research Figure 16: Peers Comparison Price Tgt.Price (RM) (RM) CY17 CY18 CY17 CY18 CY17 CY18 CY17 CY18 BAuto 2.09 2.40 Buy 14.8 14.8 12.1 4.8 4.5 7.0 8.3 32.1 37.7 MBM Resources 2.05 2.09 Sell 2.0 9.9 8.8 0.4 0.4 2.0 2.0 4.1 4.5 Pecca 1.46 1.69 Buy 15.8 15.5 12.5 1.6 1.5 3.6 4.0 10.5 12.2 UMW 5.56 5.04 Sell (9.4) Company Average Call Upside (%) PE (x) PB(x) Dividend Yield (%) ROE (%) 28.2 18.1 1.3 1.3 2.3 2.3 4.7 6.9 17.9 13.2 1.1 1.1 2.7 2.8 6.4 7.9 Page 5 of 6
18. 19-Oct-17 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) Sector Recommendation Guideline OVERWEIGHT: The industry, as per our coverage universe, is expected to outperform the FBMKLCI over the next 12 months. NEUTRAL: The industry, as per our coverage universe, is expected to perform in line with the FBMKLCI over the next 12 months. UNDERWEIGHT: The industry, as per our coverage universe, is expected to underperform the FBMKLCI over the next 12 months. 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 Thursday, October 19, 2017, the analyst, Abel Goon Chun Hoe, 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 – 2031 6608 www.ta.com.my Page 6 of 6
19. RESULTS UPDATE Thursday , October 19, 2017 FBMKLCI: 1,748.99 Sector: Telecommunications THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM5.20 (+6.3%) DiGi.Com Berhad Last Traded: RM4.89 Stabilised Prepaid Segment Paul Yap, CFA Tel: +603-2167 9603 HOLD paulyap@ta.com.my Review Digi announced a 9MFY17 net profit of RM1,117mn (+7.2% QoQ, -11.2% YoY). Results were within ours and consensus estimates at 71.7% and 72.0%. Its close to 100% dividend payout ratio was maintained, as it declared a third interim dividend of 4.9sen/share (YTD: 14.2sen/share). Successfully stabilising its prepaid segment, service revenue increased 1.6% QoQ after two consecutive quarters of decline. Prepaid service revenues stood firm during the quarter, spurred by a higher concentration of internet users and festive & public holiday related demand. We believe prepaid revenue trends are likely to remain flattish, premised on issues such as falling IDD revenues, competitive pressures and tightened prepaid SIM and top-ups regulations. However, we do expect service revenue to return to growth, driven by its postpaid engine. Postpaid subscribers (+103k) continues to gain traction, as it officially switched on its new 900MHz spectrum. Aiding bottom line, finance costs also improved on lower debt exposure and gains from interest rate swap. YoY, Service revenue decline 5.8% YoY – in line with guidance of a midsingle digit decline. The double digit growth in postpaid revenues (+11.6% YoY) were insufficient to offset a fall in prepaid revenues (-13.6% YoY). EBITDA margins improve 0.9pp, aided by lower traffic charges, staff costs and other expenses. Depreciation and amortisation spiked 21.8% YoY, on the back of commencement of the 900MHz and 1800MHz spectrum amortisation. After shirking away from the low margin segment, prepaid service revenues appear to have stabilised. From a year ago, there has been a decline of 798k prepaid subscribers, while prepaid ARPU has moderated to RM32. In line with its strategy, the decline in subscribers were due to lower IDD migrant subscribers, with the proportion of internet subscribers rising 6.1pp to 67.6%. Nevertheless, near term challenges could still persist, with issues such as falling IDD revenues, competitive pressures and tightened prepaid SIM and top-ups regulations to be enforced in 2018. The postpaid segment continues to show good traction. Prepaid subscribers reported its 14th consecutive quarter of net adds. Improved network capabilities from its enhanced LTE 900MHz helped fuel acquisitions, internet usage and subscriptions. This is also expected to open up untapped opportunities in the enterprise segment. Postpaid ARPU moderated to RM77 on lower priced entry plans and a larger subscriber base (+401k). www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) DIGI MK 6947 Main Market 7775.0 38,019.8 5.19/4.63 5,240.5 10.0 0.84 Telenor - 49.0 EPF - 13.3 Amanah Saham Bumiputera - 8.1 Skim Amanah Saham Bumiputera - 7.6 Kumpulan Wang Persaraan - 5.4 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 (2.5) (2.0) 1,519 1,554 1,530 1,532 99.3 101.4 Sell (Upgraded) Financial Indicators Net debt/EBITDA (x) CFPS (sen) P/CFPS (x) ROAE (%) ROAA (%) NTA/Share (RM) Price/ NTA (x) FY17 0.6 39.7 12.3 308.2 26.7 0.0 363.2 FY18 0.6 29.7 16.4 327.2 25.6 0.0 194.1 % of FY 71.7 72.0 Within Within DiGi 0.6 2.1 (4.9) (2.2) FBM KLCI (1.9) (0.3) 0.5 4.9 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 Source: Bloomberg Page 1 of 5
20. 19-Oct-17 Impact We raise our depreciation estimates by 6 .0-8.8%, We lower our FY17/ FY18/FY19 earnings by 2.5%/2.0%/1.6% to RM1,519mn/RM1,554mn/ RM1,605mn. Outlook For 2017, a low to mid-single digit decline in service revenue is expected. EBITDA margins are unlikely to vary from 2016 levels, while capex is guided at 11-13% of service revenue. Capex, this year, has been front loaded to take advantage of its new 900MHz spectrum. Priorities are to drive an increasing proportion of internet users onto its prepaid subscriber base. Increased access to lower band spectrum allows it to be compete more effectively in the postpaid segment, while opening up opportunities in the untapped enterprise space. However, in the prepaid segment, potential challenges could surface from tightened prepaid SIM and top-ups regulations, which will be implemented in 2018. In terms of spectrum updates, we understand the 2600MHz spectrum has been extended for an additional two years, expiring 31st December 2019. There are still ongoing discussions for the reissuance of the 2100MHz spectrum, which is set to expire on 1st April 2018. Valuation We raise our TP for Digi to RM5.20/share – based on a DCF valuation with a lower WACC of 7.3% and long term growth rate of 1.0%. Our WACC is adjusted downwards on the back of a lower beta. We upgrade our recommendation for the stock to HOLD. Successfully stabilising its prepaid segment, we expect service revenue to return to growth, driven by its postpaid engine. Additionally, prices should be sustained by decent forward dividend yields of 4.0-4.2%. Table 1: Earnings Summary (RMmn) FYE Dec Revenue EBITDA EBITDA margin (%) Depreciation and amortisation EBIT Net finance costs Others Profit before tax Taxation MI Profit after tax Core net profit EPS (sen) EPS growth (%) PER (x) EV/EBITDA (x) DPS (sen) Dividend yield (%) FY15 6,914 2,996 43.3 (642) 2,354 (46) 0 2,309 (586) 0 1,723 1,710 22.0 (15.7) 22.2 13.4 22.0 4.5 FY16 6,597 2,955 44.8 (651) 2,304 (66) 0 2,238 (606) 0 1,633 1,635 21.0 (4.4) 23.3 13.6 20.9 4.3 FY17F 6,242 2,835 45.4 (778) 2,058 (60) 0 1,998 (480) 0 1,519 1,519 19.5 (7.1) 25.0 14.1 19.5 4.0 FY18F 6,382 2,904 45.5 (800) 2,104 (59) 0 2,044 (491) 0 1,554 1,554 20.0 2.3 24.5 13.8 20.0 4.1 FY19F 6,524 2,973 45.6 (806) 2,167 (55) 0 2,112 (507) 0 1,605 1,605 20.6 3.3 23.7 13.5 20.6 4.2 Page 2 of 5