Bursa Malaysia Daily Market Report - 20 April

Transcription

1. Thursday , 20 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. 2. 3. 4. 5. Automotive Sector: March TIV Within Expectations Gadang Holdings Bhd: Exceptional Construction Margin Hua Yang Berhad: Increasing its Stake in Magna Prima to 31% Malaysian Economy: Inflation Accelerates Further in March 2017 Malaysian Pacific Industries Berhad: Plans in Place to Outpace Market Growth Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Thursday, 20 April 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (19.04.2017) Volume (mil) +/-chg (RMmn) Main Market 1,784.4 -142.7 2,045.7 Warrants 160.3 0.8 22.8 ACE Market 900.3 201.1 117.2 Bond 9.5 6.5 1.1 ETF 0.1 0.04 0.1 Total 2,854.5 2,186.9 Off Market 72.4 -80.3 129.0 Value +/-chg -261.7 -0.4 -3.0 0.2 0.05 -108.5 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP April Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA RGB SPSETIA PTRANS SEACERA CIMB LITRAK PLABS CARIMIN IRETEX SCNWOLF Up Down 178 484 53 89 25 84 2 2 0 2 258 661 % chg % YTD chg 1,738.95 12,380.99 17,202.27 1,733.00 -1.65 -20.25 -119.89 -1.00 -0.09 -0.16 -0.69 -0.06 5.92 7.97 16.90 5.96 20,404.49 5,863.03 7,114.36 18,432.20 2,138.40 23,825.88 3,126.28 1,567.19 5,606.52 3,170.69 1,932.46 5,804.01 -118.79 13.56 -33.14 13.61 -10.06 -98.66 -11.26 -7.23 0.00 -26.03 -13.96 -32.73 -0.58 0.23 -0.46 0.07 -0.47 -0.41 -0.36 -0.46 0.00 -0.81 -0.72 -0.56 3.25 8.92 -0.40 -3.57 5.52 8.30 8.52 1.57 5.85 2.16 -1.86 2.44 @ @ @ @ @ @ @ @ @ @ (RM) 0.26 3.68 0.24 0.92 4.88 5.90 0.29 0.38 0.23 0.25 Exchange Rate USD/MYR 4.3991 -0.0120 USD/JPY 108.86 0.0400 EUR/USD 1.073 0.0062 Counter Mkt Cap. (RM’mn) SIME 62,908 PCHEM 60,640 IHH 49,390 MAXIS 48,367 AXIATA 45,318 PETGAS 38,150 PETGAS 37,002 MISC 32,630 HAPSENG 22,009 PPB 19,964 Chg (RM) -0.03 -0.02 -0.04 -0.02 -0.04 -0.20 -0.60 -0.02 -0.06 -0.10 Review & Outlook The local market slipped back into profit-taking consolidation mode Wednesday, as political uncertainties in Europe, geopolitical tensions in global hotspots and weaker US corporate earnings dampened trading sentiment. The KLCI shed 1.65 points to close at 1,738.95, off an early high of 1,741.47 and low of 1,735.73, as losers swarmed gainers 661 to 258 on cautious trade totaling 2.85bn shares worth RM2.18bn. Stocks should continue trading sideways with downward bias in the nearterm, given the external geopolitical uncertainties which should discourage investor commitments. On the index, while the 50-day moving average support level at 1,726 should hold to prevent a test of next key support of 1,700, overhead resistance at 1,758, the 23.6%FR of the 1,310 to 1,896 upswing which closely match the recent high, will be an important upside hurdle. Any further weakness on BinaPuri shares towards the 200-day moving average support at 42sen will be attractive to bargain for rebound upside towards the upper Bollinger band (46sen), with a breakout to aim for the 50%FR (49sen) ahead. Better support is from the 23.6%FR (40sen). EcoWorld shares should also attract buyers on dips towards the 100-day ma support (RM1.44), while immediate upside hurdles are from the 50%FR (RM1.64) and 61.8%FR (RM1.74), and stronger retracement support is at the 23.6%FR (RM1.39). • • • • • Top 10 KLCI Movers Based on Mkt Cap. Off Market (mn) 20.0 15.0 10.0 8.0 5.1 5.0 2.0 1.7 1.5 1.0 Value/ Volume 1.15 0.14 0.13 0.12 1.35 0.77 1.78 Vol. (mn) 4.54 8.06 3.87 4.50 2.17 0.52 0.77 1.48 0.60 1.96 Commodities Futures Palm Oil (RM/mt) 2,465.00 -8.00 Crude Oil ($/Barrel) 50.58 -1.77 Gold ($/tr.oz.) 1,282.00 -9.50 • • • • • • • • • • Important Dates KGR OUP - 2:2 Rights Issue - RI of up to 1,251.2m shares together GROUP with up to 625.6m free detachable warrants. 2 rights shares for every 2 existing shares held, at an issue price of RM0.05 per rights share. Application Closed: 20/04/2017. LISTING ON: 05/05/2017. • • News Bites Malaysia's inflation rose 5.1% YoY in March led by a significant increase in transport prices. Petronas Dagangan Bhd, which is 69.86% owned by Petronas will proceed with its plans to exit the Vietnamese market. Iskandar Waterfront City Bhd has requested for more time to deliberate on the proposed merger with its major shareholder Iskandar Waterfront Holdings Sdn Bhd. Ekovest Bhd's wholly-owned subsidiary Ekovest KL Bund Sdn Bhd will receive up to RM100mn or 75% of the cost savings, whichever is lower, as an incentive from the government in respect of the Bunus regional sewage treatment plant if it meets the 20% cost savings and KPIs set. Hua Yang Bhd is planning to up its stake in Magna Prima Bhd by 20.12% or 66.89mn shares, for RM123.75mn or RM1.85 per share, to 30.96%. AirAsia has entered share subscription agreement to subscribe for 50% of shares in Touristly Travel Sdn. Bhd and shareholders agreement to govern the relationship between the parties. WCT Holdings Bhd's Paradigm Mall Johor Bahru, which is expected to be opened by November this year, is seen to achieve full occupancy by 2018. S P Setia Bhd is launching its Setia Express Advance Loan, a differential sum loan scheme that offers interest rates as low as 5.5% per annum and up to 30% of the intended property purchase price. Malaysia Marine and Heavy Engineering Holdings Bhd is unsure if it can return to profitability in FY17, but hopes to make a profit in FY18. AirAsia X Bhd and PT Indonesia AirAsia have entered into a commercial services agreement for AirAsia X to provide commercial sharing services and support to the latter. KUB Malaysia Bhd is buying 1,534 hectares of oil palm plantation land in Kinabatangan, Sabah from Kwantas Corp Bhd for RM100.45mn. Matang Bhd is bidding for two parcels of leasehold oil palm land measuring a collective 4,219.79 acres in Raub, Pahang, together with a 60-tonne per hour palm oil mill there. Scomi Group Bhd is partnering two companies to set up a joint venture company in Singapore to pursue business opportunities in engineering, procurement and construction of hydropower plants, wind farms and port crane systems in Asia, including Turkey. Malakoff Corporation Bhd will focus on the international market in 2017 as the group continues to explore potential growth opportunities to expand its presence in the areas of power generation and water production. Lembaga Tabung Haji has emerged as a substantial shareholder in Datasonic Group Bhd after acquiring 67.5mn shares in the secure ID and chip-based card supplier, bringing its shareholding to 131.8mn shares or a 9.76% stake. Gadang Holdings Bhd posted a slight increase of 3% in net profit for 3QFY17 to RM25.79mn, from RM25.11mn a year earlier, largely on higher contributions from the property division. It was above expectations. A tightening labor market is putting broader pressure on wages as U.S. firms increasingly report trouble filling low-skilled jobs, according to a new Federal Reserve report. DISCLAIMER The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
3. TA Securities Thursday , April 20, 2017 FBMKLCI: 1,738.95 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Market View Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my Sideways Amid Geopolitical Uncertainties The local market slipped back into profit-taking consolidation mode Wednesday, as political uncertainties in Europe, geopolitical tensions in global hotspots and weaker US corporate earnings dampened trading sentiment. The KLCI shed 1.65 points to close at 1,738.95, off an early high of 1,741.47 and low of 1,735.73, as losers swarmed gainers 661 to 258 on cautious trade totaling 2.85bn shares worth RM2.18bn. 1,758 Key Upside Hurdle Stocks should continue trading sideways with downward bias in the near-term, given the external geopolitical uncertainties which should discourage investor commitments. On the index, while the 50-day moving average support level at 1,726 should hold to prevent a test of next key support of 1,700, overhead resistance at 1,758, the 23.6%FR of the 1,310 to 1,896 upswing which closely match the recent high, will be an important upside hurdle. Buy on Weakness BinaPuri & EcoWorld Any further weakness on BinaPuri shares towards the 200-day moving average support at 42sen will be attractive to bargain for rebound upside towards the upper Bollinger band (46sen), with a breakout to aim for the 50%FR (49sen) ahead. Better support is from the 23.6%FR (40sen). EcoWorld shares should also attract buyers on dips towards the 100-day ma support (RM1.44), while immediate upside hurdles are from the 50%FR (RM1.64) and 61.8%FR (RM1.74), and stronger retracement support is at the 23.6%FR (RM1.39). Asian Markets Broadly Lower On Europe Uncertainty and Geopolitical Concern Asian markets declined on Wednesday, tracking Wall Street's negative close overnight, with resources and financial shares losing ground. Political uncertainty coupled with weaker-than expected results from heavyweights IBM and Goldman Sachs Group Inc. pushed some investors away from riskier assets like stocks and into havens including Treasuries and the yen. A vote in Britain will be preceded by the French presidential election, while a standoff over North Korea’s nuclear weapons program continue to dampen market sentiment. Japanese stocks were nearly flat in choppy trade as investors refrained from taking large positions as geopolitical tensions soured the mood. The Nikkei 225 share average edged up 0.07 percent to 18,432.20 after traversing positive and negative territory, while the broader Topix was down 0.01 percent at 1,471.42. Australian shares were also lower, with the S&P/ASX 200 ending down 0.56 percent, or 32.74 points, at 5804.00. Meanwhile, China's main indexes fell for their fourth straight session on Wednesday, as investor worries deepened that tighter regulations against speculation and shadow banking will hurt the country's credit-fuelled recovery. The bluechip CSI300 index fell 0.5 percent to 3,445.88 points, while the Shanghai Composite Index lost 0.8 percent to 3,170.69 points. Page 1 of 8
4. TA Securities 20-Apr-17 A Member of the TA Group IBM and Energy Sector Sends S &P 500 and Dow Lower U.S. equities closed mostly lower on Wednesday, with IBM and oil prices pushing down the Dow Jones industrial average. IBM sank 4.9 percent after the company reported a biggerthan-expected decline in revenue for the first time in five quarters. The stock was the biggest drag on the S&P and Dow. Of the 57 companies in the S&P 500 that have reported earnings, 75.4 percent have topped expectations, according to Thomson Reuters data, above the 71 percent average for the past four quarters. Overall, profits of S&P 500 companies are estimated to have risen 10.8 percent in the quarter, the best since 2011. Meanwhile, the energy sector slumped 1.4 percent for its fifth drop in six sessions as oil prices settled 3.5 percent lower. U.S. data showed a counter-seasonal build in gasoline inventories and a smaller-than-expected decline in overall crude stocks and sent U.S. crude below the USD52 a barrel mark for the first time in two weeks. Mounting tension between North Korea and the United States, along with political uncertainty in Europe ahead of the French presidential elections, have also served to keep investors cautious. The Dow Jones Industrial Average fell 118.79 points, or 0.58 percent, to 20,404.49, the S&P 500 lost 4.02 points, or 0.17 percent, to 2,338.17 and the Nasdaq Composite added 13.56 points, or 0.23 percent, to 5,863.03. Page 2 of 8
5. TA Securities 20-Apr-17 A Member of the TA Group News In Brief Corporate Petronas Dagangan Bhd , which is 69.86% owned by Petronas will proceed with its plans to exit the Vietnamese market. The group is still looking for a buyer for its liquefied petroleum gas (LPG) bottling and distribution operations there. This is despite improvements in the LPG market and improvement in the group's earnings in FY16. It is also allocating RM400mn capex in FY17 while it sets out to further improve volume and cost efficiency. (The Edge) Iskandar Waterfront City Bhd has requested for more time to deliberate on the proposed merger with its major shareholder Iskandar Waterfront Holdings Sdn Bhd (IWH). IWH has agreed to extend the original due date for its board to revert with its decision on whether the board is agreeable to put forward the proposed merger to the scheme shareholders for one more month from April 19 to May 5. (Bursa Malaysia) Ekovest Bhd’s wholly-owned subsidiary Ekovest KL Bund Sdn Bhd (EKLB) will receive an incentive from the government in respect of the Bunus regional sewage treatment plant (STP) here. The incentive is payable to EKLB upon the company's enhanced design for the Bunus STP delivering more than 20% cost savings of the final cost of the project to the government, as well as it achieving the key performance indicators set under an incentive agreement. The total incentive for Bunus STP will not exceed RM100mn or 75% of the cost savings, whichever is lower. (Bursa Malaysia) Hua Yang Bhd is planning to up its stake in Magna Prima Bhd by 20.12% or 66.89mn shares, for RM123.75mn or RM1.85 per share, to 30.96%. Hua Yang has inked a conditional share sale agreement with Fantastic Realty Sdn Bhd, and five other individuals — Lee Shu Shun, Lee Kok Meng, Yap Fatt Thai, Kok Sew Hong and Kok Siew Hwa — for the proposed acquisition. On completion of the proposal, Magna Prima would become an associate of Hua Yang, which now has a 10.84% stake in Magna Prima, acquired on Jan 25. (Bursa Malaysia) AirAsia has entered into followings agreements with Touristly Travel Sdn. Bhd. (Touristly), ie: 1) Share subscription agreement to subscribe for 50% of shares in Touristly; 2) Shareholders agreement to govern the relationship between the parties. The consideration of share subscription is RM6.5mn, to be satisfied via asset injection of e-T360 by AirAsia to Touristly. Besides, AirAsia and Touristly have also signed a convertible loan agreement where AirAsia will be providing a convertible loan of RM5mn to Touristly. (Bursa Malaysia) Comment: Touristly is involved in the provision of on-ground activities for travellers. It has launched an online platform for travellers who want to explore, plan and book on-ground activities. Meanwhile, e-T360 is the digital platform of AirAsia Travel 3Sixty inflight magazine. We believe Touristly will help to complement AirAsia’s business. The subscription would enable AirAsia to provide a complete travelling package from the booking of airline tickets, hotels, car rental, to on-ground service. However, earnings contribution from Touristly is expected to be insignificant. As such, we maintain our earnings projections. Maintain Sell on AirAsia with unchanged target price of RM3.02. WCT Holdings Bhd's Paradigm Mall Johor Bahru, which is expected to be opened by November this year, is seen to achieve full occupancy by 2018. The retail property had so far secured a 75% occupancy rate. The property has a net lettable space of 1.3mn sqft within a built-up area of 2mn sqft. (The Edge) S P Setia Bhd is launching its Setia Express Advance Loan, a differential sum loan scheme that offers interest rates as low as 5.5% per annum and up to 30% of the intended property purchase price. This is to bridge the financing gap between purchase price and purchaser's end financing loan amount. (The Edge) Page 3 of 8
6. TA Securities 20-Apr-17 A Member of the TA Group Malaysia Marine and Heavy Engineering Holdings Bhd is unsure if it can return to profitability in FY17 , but hopes to make a profit in FY18. This is because it will take time for the group to complete and deliver projects to its clients. (The Edge) AirAsia X Bhd (AAX) and PT Indonesia AirAsia (IAA) have entered into a commercial services agreement. AirAsia X would provide commercial sharing services and support to IAA. The agreement would also cover airport management, group handling services and government, as well as, regulatory liaison services to be provided by AAX to IAA at its Perth station. (Bursa Malaysia) KUB Malaysia Bhd is buying 1,534 hectares (3,791 acres) of oil palm plantation land in Kinabatangan, Sabah from Kwantas Corp Bhd for RM100.45mn. The land, which has a remaining lease tenure of 870 years, has a total planted area of 1,503.05 ha, of which 1,229.92 ha consist of mature palms, 135.29 ha young mature palms and 137.84 ha immature palms. (Bursa Malaysia) Matang Bhd is bidding for two parcels of leasehold oil palm land measuring a collective 4,219.79 acres in Raub, Pahang, together with a 60-tonne per hour palm oil mill there. The results of the bidding are expected to be received by July 19. The payment for the purchase consideration shall be in cash which is expected to be raised via bank borrowings. (Bursa Malaysia) Scomi Group Bhd is partnering two companies to set up a joint venture company in Singapore to pursue business opportunities in engineering, procurement and construction of hydropower plants, wind farms and port crane systems in Asia, including Turkey. The partnership was undertaken via its wholly-owned unit Scomi International Private Ltd with Hong Kong-incorporated firm South Asia Logistic Services Ltd, and Malaysian private firm, Emir Equity Sdn Bhd. This marks Scomi’s second venture into the renewable energy sector after securing a solar project via another JV. (Bursa Malaysia) Malakoff Corporation Bhd will focus on the international market in 2017 as the group continues to explore potential growth opportunities to expand its presence in the areas of power generation and water production. (The Edge) NetX Holdings Bhd has entered into a technology partnership agreement with M3 Technologies (Asia) Bhd’s unit M3 Online Sdn Bhd (M3O) for the development of an electronic payment mobile exchange. Under the agreement, NetX will provide the integration of multiple payment gateways, while M3O will develop the front-end interface of the mobile application and e-commerce platform. (Bursa Malaysia) Lembaga Tabung Haji has emerged as a substantial shareholder in Datasonic Group Bhd after acquiring 67.5mn shares in the secure ID and chip-based card supplier, bringing its shareholding to 131.8mn shares or a 9.76% stake. (The Edge) PUC Founder (MSC) Bhd is divesting its entire 70% equity interest in financial advisory firm Oscar Wealth Advisory Sdn Bhd for RM1.6mn. The divestment of its controlling stake is part of its portfolio restructuring, in line with its future growth plans of becoming a leading digital services provider. (Bursa Malaysia) OSK Holdings Bhd announced changes to its board of directors, chief of which is the redesignation of Ong Ju Yan as managing director (MD) of the group, and his brother Ju Xing as deputy MD, with immediate effect. At the same time, their father, major shareholder and chief executive director Tan Sri Ong Leong Huat, 73, was redesignated as executive chairman of OSK Holdings. (Bursa Malaysia) Page 4 of 8
7. TA Securities 20-Apr-17 A Member of the TA Group GuocoLand (Malaysia) Bhd saw a 38% decline in net profit for 3QFY17 to RM8.34mn from RM13.35mn a year ago, which it attributed to a high base effect after it sold a piece of land on Jalan Kia Peng last year. In 9MFY17, net profit was over three-fold higher at RM119.42mn from RM27.21mn a year ago, as it registered gains from the disposal of its 679.2-ha land worth RM474.99mn in Sepang, which it completed in the previous quarter. (Bursa Malaysia) Gadang Holdings Bhd posted a slight increase of 3% in net profit for 3QFY17 to RM25.79mn, from RM25.11mn a year earlier, largely on higher contributions from the property division. For the first nine-months of FY17, net profit grew 11% to RM70.39mn, from RM63.69mn thanks to improved contributions from its property and utility divisions, though revenue fell 11% to RM381.02mn, from RM427.28mn dragged by its construction division. (Bursa Malaysia) Page 5 of 8
8. TA Securities 20-Apr-17 A Member of the TA Group News In Brief Economy Asia Malaysia 's March Inflation Higher at 5.1% YoY Malaysia's inflation, as measured by the consumer price index (CPI), rose 5.1% in March from a year earlier, led by a significant increase in transport prices. In February, the CPI grew 4.5% year-on-year. The overall index for CPI rose at a higher rate in March 2017 owing to the low base last year and higher retail fuel prices compared to March 2016. Among the major groups which recorded increases were the indices for transport, food and non-alcoholic beverages, recreation services and culture, health, restaurants and hotels as well as housing, water, electricity, gas and other fuels. The CPI's transport segment increased 23% in March, after rising 17.9% in February. The index for food and nonalcoholic beverages, which accounted for 30.2% in the CPI weights, increased 4.1% in March. Meanwhile, year to date, the CPI rose 4.3% from a year earlier, according to the department, with the index for food and non-alcoholic beverages as the main contributor to the rise. Month-on-month, the CPI in March fell 0.1%, compared to a growth of 1.3% in February. (The Edge Markets) Malaysia’s Diesel and Petrol Prices Increase Fuel prices are up across the board for the fourth week of April under the new weekly pricing mechanism. The price of RON95 petrol has gone up by three sen to RM2.27 per litre compared to RM2.24 last week, while the price of RON97 petrol has gone up by two sen to RM2.54 compared to RM2.52 per litre last week. The price of diesel has also increased, with a five sen increase to RM2.21 this week compared to RM2.16 per litre last week. The new prices came into effect today and will remain in effect until April 26. The Domestic Trade, Co-operatives and Consumerism Ministry posted the new weekly fuel prices on Twitter. Previously, its Minister Datuk Seri Hamzah Zainudin announced that a new weekly fuel pricing mechanism would be used from April onwards. 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. With the new weekly mechanism, fuel prices will be announced every Wednesday. (The Star) Digital Economy Could Add More than 20% to Malaysia's GDP Before 2020 The contribution of the digital economy to Malaysia's gross domestic product (GDP), at about 17% currently, is expected to exceed the projected target of 20% earlier than 2020, said Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah. He expressed confidence that the level could be achieved earlier as Malaysia had started making waves in the digital economy arena this year, first with the launch of the Digital Free Trade Zone or DFTZ on March 22 and now, the Malaysia Digital Hub. Mohd Irwan said the Malaysian ecosystem for startups is conducive and, due to the regulations, policies and facilities that have been put in place, the country is now the second top hotspot to launch startups in the world. (The Star) Australia Consumer Confidence Weakens Australia's consumer sentiment weakened during the week ended April 16, partly reversing the previous week's gain, a weekly survey compiled by the ANZ bank and Roy Morgan Research showed. The consumer confidence index fell by 1.9% to 112.6 from 114.8 in the preceding week. Moreover, this dragged the index back down below its long run average. Consumers' expectations regarding country's economic conditions for the next year declined 1.9% and expectations over the next five years dropped a sharp 4.1%, to be at its lowest level since September 2015. Households' views towards their current finances dropped by 0.7%, while views about future finances improved 2.7%, to the highest level since February. Inflation expectations were unchanged at 4.3%, with the four week moving average holding steady at 4.3%. (RTT News) Other news in Australia: • A leading economic indicator for the Australian economy increased slightly in March. The Westpac-Melbourne Institute leading index rose 0.08% month-overPage 6 of 8
9. TA Securities 20-Apr-17 A Member of the TA Group month in March . This was followed by a 0.07% drop in February. The six-month growth rate, which indicates the likely pace of economic activity relative to trend three to nine months into the future, rose from 1.14% in February to 1.17% in March. (RTT News) • The total number of new vehicle sales in Australia was up a seasonally adjusted 1.9% on month in March, the Australian Bureau of Statistics said, coming in at 96,751. That follows the 2.7% contraction in February. Sales for sports utility vehicles added 0.2% on month, while other vehicles gained 0.5% and passenger vehicles fell 1.3%. The largest downward movement across all states and territories was in Tasmania (-1.9%). The Northern Territory was the only jurisdiction not to record a decrease in sales. On a yearly basis, sales slid 3.0% after falling 4.0% in the previous month. (RTT News) U.S. Fed Beige Book: Modest Wage Growth is Broadening A tightening labor market is putting broader pressure on wages as U.S. firms increasingly report trouble filling low-skilled jobs, according to a new Federal Reserve report. In a couple regions, “worker shortages and increased labor costs were restraining growth in some sectors, including manufacturing, transportation and construction,” the Fed said Wednesday in a roundup of anecdotal information on regional economic conditions, known as the beige book. The latest report was based on anecdotes covering mid-February through the end of March across the central bank’s 12 districts. The report found that “modest wage increases broadened” and “employers in most districts had more difficulty filling low-skilled positions, although labor demand was stronger for higher skilled workers.” More broadly, the Fed said economic activity expanded across all 12 districts, “with the pace of expansion equally split between modest and moderate.” Inflation continued to firm, with prices reported as rising modestly. “Businesses mostly expected mild to moderate price growth to persist in the next several months,” the report said. (The Wall Street Journal) Europe Eurozone Inflation Dip Confirmed to 1.5% in March The Eurozone’s brief flirtation with 2% inflation is over. Annual consumer price growth in the 19-country bloc has been confirmed at 1.5% in March, dipping from the four-year high of 2%which had begun to raise concerns over an inflationary surge in the continent. The Eurozone has emerged from more than three years of weak inflation at the start of this year as climbing food and energy prices have pushed up prices. Eurostat confirmed the March reading of 1.5%, marking the biggest monthly price drop in over a year. Two years into their low rates and bond-buying experiment, the European Central Bank’s senior policymakers think the current climb in inflation is not sustainable as it is underpinned by volatile factors such as energy rather than more concrete developments such as sustained wage growth. ECB expects average inflation of 1.7% this year. They expect to continue with their QE measures until at least the end of the year. (Financial Times) Eurozone Returns to Trade Surplus The Eurozone’s trade balance with the rest of the world returned to surplus in February after a rare deficit the previous month, a boost to hopes that a modest recovery gathered momentum in the first quarter. The European Union’s statistics agency said the 19 countries that use the euro exported 170.3 billion euros of goods to countries outside the currency area, while importing goods valued at €152.6 billion from the U.S., the U.K. and other economies, leaving a surplus of €17.8 billion. In January, the Eurozone ran a deficit of €600 million, the first such gap for three years. Adjusting for seasonal effects, the Eurozone’s exports rose by 0.4% from January, while imports were down 1.7%. (The Wall Street Journal) Page 7 of 8
10. TA Securities 20-Apr-17 A Member of the TA Group Share Buy-Back : 19 April 2017 Company AMPROP UNIMECH Bought Back Price (RM) Hi/Lo (RM) 35,300 5,000 0.82/0.815 1.08 0.82/0.81 1.08 Total Treasury Shares 13,133,100 6,219,810 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 8 of 8 We accept no
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 19-Apr-17 2.08 2.36 6.08 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.36 2.04 5.12 0.96 0.55 1.21 10.8 22.7 17.7 15.8 23.8 27.6 19.3 10.4 34.4 13.2 9.9 22.1 5.7 3.8 1.8 7.6 3.8 3.0 2.44 2.70 7.00 -14.8 -12.6 -13.1 1.95 1.95 4.43 6.7 21.0 37.2 -2.3 10.3 33.0 4.10 3.40 5.40 6.10 15.80 9.20 22.10 4.70 8.50 1.26 0.94 1.27 1.33 0.66 0.93 0.80 1.27 0.70 35.8 29.4 46.4 50.6 101.3 73.7 136.6 49.0 36.4 37.7 33.1 50.6 55.6 109.8 82.8 140.4 51.7 38.2 11.3 9.6 10.6 10.8 13.5 12.3 14.6 10.5 26.1 10.7 8.5 9.7 9.9 12.5 10.9 14.2 9.9 24.9 3.7 2.8 3.2 3.7 3.0 5.5 2.8 2.3 3.6 3.7 2.8 3.7 4.1 3.0 5.5 2.9 2.3 3.6 4.23 2.92 5.03 5.83 14.00 9.10 20.28 5.39 10.00 -4.7 -3.4 -2.0 -6.0 -2.1 -0.5 -1.8 -5.0 -4.8 3.60 2.08 3.90 4.11 12.70 7.50 18.52 4.43 8.20 11.9 35.6 26.4 33.3 7.9 20.7 7.6 15.6 16.1 8.3 18.0 14.4 21.5 1.5 10.4 1.0 8.7 7.6 0.44 1.27 5.14 3.46 0.74 1.84 2.05 5.90 0.49 1.55 5.49 3.27 0.58 1.90 1.50 5.58 0.81 0.71 1.04 1.09 1.16 na 1.05 0.13 5.9 14.7 31.6 16.8 9.6 12.6 12.8 44.3 5.9 13.1 36.4 20.9 9.9 12.5 12.7 45.8 7.5 8.7 16.3 20.6 7.6 14.6 16.0 13.3 7.5 9.7 14.1 16.5 7.5 14.7 16.1 12.9 0.0 2.2 2.3 2.7 1.4 3.0 1.5 4.2 2.3 2.2 2.3 2.7 1.4 3.0 1.5 4.2 0.51 1.35 5.33 3.61 0.75 1.87 2.14 6.13 -13.7 -6.1 -3.6 -4.2 -2.0 -1.6 -4.2 -3.8 0.36 0.79 4.59 3.07 0.41 1.42 1.41 5.02 22.2 61.2 12.0 12.7 81.5 29.6 45.4 17.5 1.1 21.0 7.5 8.1 27.8 8.2 18.5 0.3 1.98 2.00 0.46 15.4 15.6 12.8 12.7 5.1 5.1 2.40 -17.5 1.93 2.6 -1.5 14.96 17.80 15.41 21.08 0.57 0.59 69.6 93.1 77.5 21.5 101.9 19.1 19.3 17.5 4.6 4.7 5.2 5.2 15.20 18.74 -1.6 -5.0 12.38 14.58 20.8 22.1 7.5 8.7 2.39 7.55 24.88 81.30 3.16 1.76 4.67 0.96 2.23 9.59 26.14 83.60 3.76 2.74 4.17 1.10 0.45 0.34 0.34 0.38 0.49 0.71 0.45 0.56 6.5 35.9 102.6 288.8 22.3 25.1 12.7 9.3 7.5 40.5 124.5 313.3 24.7 25.3 15.8 12.8 36.8 21.0 24.3 28.2 14.2 7.0 36.8 10.3 31.7 18.7 20.0 25.9 12.8 7.0 29.6 7.5 0.8 4.0 2.5 3.5 4.7 4.5 1.0 5.2 0.9 5.0 3.0 3.8 5.4 4.5 1.1 5.2 3.00 9.53 27.00 81.98 3.20 2.04 4.75 1.07 -20.3 -20.8 -7.9 -0.8 -1.2 -13.7 -1.7 -10.5 2.11 7.30 20.40 74.12 2.06 1.43 4.14 0.78 13.3 3.4 22.0 9.7 53.6 23.1 12.7 22.4 -7.0 3.0 6.0 4.0 23.9 1.7 7.8 20.1 47.02 54.22 1.03 271.1 271.8 17.3 17.3 5.6 5.6 55.64 -15.5 40.31 16.7 6.4 9.70 5.65 10.34 6.10 1.34 1.26 45.0 25.7 50.9 27.9 21.6 22.0 19.0 20.3 0.5 1.4 0.6 1.6 9.90 5.81 -2.0 -2.8 7.50 4.17 29.4 35.4 22.1 25.0 2.79 0.12 3.81 0.10 0.72 1.23 22.1 0.2 24.6 0.3 12.6 53.3 11.3 39.7 5.7 0.0 6.8 0.0 3.42 0.13 -18.4 -7.7 2.78 0.05 0.4 140.0 -5.7 140.0 6.00 4.05 6.40 4.61 0.78 0.50 13.9 13.3 17.9 16.5 43.2 30.4 33.4 24.6 0.7 1.5 0.7 1.9 6.79 4.37 -11.6 -7.3 5.78 3.85 3.8 5.2 -5.5 -3.1 4.94 6.13 1.97 4.83 2.06 4.50 6.80 1.90 5.05 2.55 0.56 0.11 0.36 -0.20 0.29 18.2 35.8 16.2 26.6 4.3 21.2 40.5 18.2 30.2 7.1 27.2 17.1 12.2 18.2 48.0 23.2 15.1 10.8 16.0 29.2 1.7 2.9 2.5 2.8 0.5 1.9 3.3 2.8 3.1 0.9 5.03 7.07 2.82 5.45 2.64 -1.8 -13.3 -30.1 -11.4 -22.0 3.81 5.90 1.94 4.20 1.96 29.7 3.9 1.5 15.0 5.1 2.3 -7.0 -6.6 -9.7 -12.7 INDUSTRIAL SCIENTX SKPRES 8.38 1.26 8.50 1.75 0.54 0.50 75.3 8.8 83.0 13.7 11.1 14.3 10.1 9.2 2.5 3.5 2.9 5.4 8.43 1.44 -0.6 -12.5 5.75 1.12 45.7 12.5 25.1 -2.3 MEDIA ASTRO MEDIA PRIMA STAR 2.68 1.17 2.34 3.20 0.85 1.95 1.04 0.69 0.59 13.3 7.7 15.0 14.5 8.0 15.8 20.2 15.1 15.7 18.5 14.7 14.8 4.7 5.3 7.7 4.9 5.4 7.7 3.01 1.52 2.70 -11.0 -23.0 -13.3 2.56 1.00 2.20 4.7 17.0 6.4 3.1 1.7 4.5 OIL & GAS EATECH MHB MISC PANTECH PCHEM SENERGY UMWOG UZMA 0.60 1.04 7.31 0.62 7.58 1.96 0.63 1.90 0.45 0.96 8.16 0.52 7.91 2.02 0.54 1.40 0.92 1.79 0.84 1.26 1.11 2.42 1.97 1.39 11.5 -0.4 50.6 3.7 34.7 5.2 -14.7 11.3 11.9 1.5 57.1 4.3 39.3 7.8 -12.4 12.2 5.2 na 14.4 16.5 21.9 37.4 na 16.8 5.0 69.6 12.8 14.3 19.3 25.1 na 15.5 0.0 0.0 4.1 2.4 2.5 0.5 0.0 0.0 0.0 0.0 4.1 2.8 2.5 0.5 0.0 0.0 1.18 1.34 9.00 0.64 7.80 2.10 1.04 2.04 -49.6 -22.4 -18.8 -3.1 -2.8 -6.7 -39.4 -6.9 0.45 0.84 6.88 0.44 5.95 1.29 0.61 1.30 33.7 23.8 6.2 41.4 27.4 51.9 4.1 46.2 -4.0 13.7 -0.5 38.2 8.6 21.0 -28.0 11.8 BANKS & FINANCIAL SERVICES AFG 4.03 AFFIN 2.82 AMBANK 4.93 CIMB 5.48 HLBANK 13.70 MAYBANK 9.05 PBBANK 19.92 5.12 RHBBANK BURSA 9.52 CONSTRUCTION BPURI GADANG GAMUDA IJM SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.03 3.10 4.50 24.16 9.25 6.27 1.53 3.88 3.93 22.75 8.24 7.52 1.76 0.45 1.08 0.94 1.26 0.50 6.3 13.7 18.7 111.8 30.8 32.7 11.1 15.7 21.1 119.1 35.3 34.5 32.0 22.6 24.0 21.6 30.1 19.2 18.3 19.7 21.4 20.3 26.2 18.2 2.5 2.3 2.2 2.3 2.4 2.6 2.5 2.6 2.7 2.4 3.0 2.7 2.52 3.70 4.81 25.50 9.55 6.51 -19.4 -16.2 -6.4 -5.3 -3.1 -3.7 1.31 3.06 4.07 22.62 7.10 5.53 55.0 1.3 10.6 6.8 30.3 13.4 31.0 -8.8 2.3 0.7 14.2 4.5 0.71 1.06 0.92 2.02 1.48 0.81 3.65 3.33 0.69 1.09 1.00 2.10 1.60 0.80 4.10 3.40 0.65 0.64 0.33 0.92 0.69 0.31 0.67 0.48 3.4 20.0 7.3 14.7 14.5 6.4 27.8 31.2 7.0 17.4 11.2 15.3 12.5 9.7 24.7 33.3 20.6 5.3 12.6 13.7 10.2 12.7 13.1 10.7 10.1 6.1 8.2 13.2 11.8 8.4 14.8 10.0 5.6 3.8 3.8 3.5 4.1 1.2 3.8 3.6 5.6 3.3 4.4 3.7 3.7 1.2 3.8 3.6 0.83 1.43 1.05 2.46 1.70 1.00 3.77 3.33 -14.5 -26.0 -12.9 -17.9 -12.9 -19.0 -3.2 0.0 0.68 1.05 0.91 1.85 1.34 0.69 2.80 2.84 4.4 1.0 0.5 9.3 10.4 17.4 30.4 17.2 2.2 -6.2 -8.5 3.6 3.5 1.2 16.6 11.0 1.70 1.56 1.79 1.72 0.53 0.63 8.9 7.8 10.1 8.3 19.2 20.0 16.8 18.7 5.2 5.4 5.9 5.7 1.84 1.72 -7.6 -9.3 1.57 1.43 8.3 9.1 -1.2 2.0 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.21 24.08 18.70 13.72 1.49 1.45 20.19 19.02 17.19 1.81 0.71 0.75 0.78 1.02 0.58 6.9 98.4 88.2 133.8 8.8 8.3 102.3 101.3 132.7 10.6 17.5 24.5 21.2 10.3 17.0 14.6 23.5 18.5 10.3 14.1 5.8 3.0 3.3 4.2 6.7 4.8 3.2 3.8 2.9 6.7 1.80 25.70 22.66 14.90 1.64 -32.8 -6.3 -17.5 -7.9 -9.1 1.14 22.16 18.68 13.00 1.38 6.1 8.7 0.1 5.5 8.0 -11.7 1.2 -12.2 -1.3 0.0 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.05 5.14 6.44 6.45 5.25 4.90 5.95 6.95 1.27 0.97 0.73 0.67 17.0 20.8 25.1 21.4 17.9 21.1 25.4 22.3 29.7 24.7 25.7 30.1 28.2 24.4 25.3 28.9 1.7 4.1 3.1 3.0 1.8 4.1 3.1 3.1 5.99 5.19 6.49 6.90 -15.7 -1.0 -0.8 -6.5 4.11 4.31 5.36 5.81 22.9 19.3 20.1 11.0 7.0 6.4 7.7 8.4 TECHNOLOGY Semiconductor & Electronics IRIS 0.16 INARI 2.07 MPI 11.74 UNISEM 3.07 0.14 2.35 13.15 3.55 1.34 0.78 0.49 0.79 -1.1 10.4 89.2 26.9 0.8 na 12.4 20.0 109.6 13.2 29.1 11.4 19.3 16.7 10.7 10.6 0.0 2.0 2.3 3.9 0.0 2.4 2.3 3.9 0.24 2.13 12.22 3.30 -33.3 -2.8 -3.9 -7.0 0.10 1.28 6.86 2.12 60.0 61.4 71.1 44.8 45.5 24.7 58.4 30.1 3.20 7.19 3.02 7.68 1.16 1.46 40.3 9.8 41.9 10.2 7.9 73.1 7.6 70.7 1.3 1.4 1.6 1.4 3.30 7.31 -3.0 -1.6 1.88 5.76 70.2 24.8 39.7 18.6 1.75 3.99 1.88 4.51 0.84 0.66 15.4 19.3 21.5 17.4 11.3 20.6 8.1 22.9 3.1 3.6 4.0 3.3 1.87 4.59 -6.4 -13.1 1.23 3.74 42.3 6.7 10.1 -7.2 PROPERTY GLOMAC HUAYANG IBRACO IOIPG MAHSING SNTORIA SPSETIA SUNWAY REIT SUNREIT CMMT TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 18.79 OCBC 9.53 UOB 21.54 PLANTATIONS WILMAR IFAR 3.46 0.46 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 16.70 8.50 19.40 1.21 1.12 1.08 173.8 87.8 195.7 190.2 10.8 92.5 10.9 209.4 11.0 9.9 10.3 10.3 3.2 5.7 3.2 3.2 6.7 3.2 19.4 9.8 22.2 -3.2 -2.6 -2.8 14.63 8.84 17.41 28.4 16.1 23.7 8.4 6.8 5.6 3.45 0.51 0.91 1.10 28.9 3.9 31.1 4.3 11.1 10.8 2.3 2.1 2.6 2.3 4.0 0.6 -13.5 -22.7 2.96 0.44 16.9 4.5 -3.6 -12.4 12.0 11.8 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
13. TA Securities A Member of the TA Group MENARA TA ONE , 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 SECTOR UPDATE Thursday, April 20, 2017 FBM KLCI: 1,738.95 Sector: Automotive Underweight Automotive Sector March TIV Within Expectations THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Abel Goon Tel: +603-2072 1277 ext. 1641 abelgoon@ta.com.my Strong MoM Growth in Mar Total Industry Volume (TIV) in March was broadly in-line with expectations, at 53.7k units (MoM: +26.5%, YoY: +10.1%). MAA attributed the higher sales to the longer working month compared to February and a rush for deliveries by companies having financial year ending Mar. We note that March has registered positive MoM growth for the past 13 years. Hence, the MoM growth is within expectations. We are expecting TIV in April to register flattish decline, in-line with the yearly trend (Figure 7). YTD TIV of 140.8k units (+7.3%) is within expectations and constitutes 24.0% and 23.9% of ours and MAA’s forecast respectively. Split Between Commercial and Passenger Although YTD TIV registered decent growth of 7.3%, there is a split between commercial vehicles (-6.1% YoY) and passenger vehicles (+8.9% YoY). Passenger vehicles have registered consecutive YoY growth the past 3 months whereas commercial vehicles have shown declines. This may be due to new model launches in the passenger segment which include 1) Honda BR-V, and 2) facelifted Perodua Axia whereas the commercial segment has not seen any new launches this year. Meanwhile, the biggest losers in the commercial segment are 1) Mazda (-72.3% YoY), 2) Hino (-45.3% YoY), and 3) Mitsubishi (-14.4% YoY). Nationals Market Share Falls National marques could not maintain its passenger segment market share gains last month as a higher monthly TIV coupled with a slight decrease in Proton sales (MoM: -0.5%, YoY: +9.7%) negated the increase in Perodua sales (MoM: +17.2%, YoY: +10.4%). We note that this in-line with the yearly trend of nationals gaining market share in Feb, only to lose it in Mar due to the larger monthly TIV. That said, nationals still control >50% of the passenger segment market share. Major Marques Performances Diverge The sales performance of major non-national marques in the passenger segment diverged significantly in 3M17. We have luxury marques BMW (YoY: +32.6%, YTD: +17.9%) and Mercedes (YoY: +16.1%, YTD: +10.9%) making huge gains as its buyers are less affected by the stringent HP loan requirements. Furthermore, Toyota (YoY: +44.7%, YTD: +78.8%) and Honda (YoY: +48.2%, YTD: +45.3%) have significantly higher sales as a result of 1) recovery from a low base and 2) new model launches. On the other end of the spectrum, we have Mazda (YoY: -41.4%, YTD: -40.1%), Nissan (YoY: -44.3%, YTD: -50.3%) and VW (YoY: -24.3%, YTD: -31.3%) which have suffered from 1) less attractive model lineups and 2) less aggressive promotional activities. Maintain Underweight We maintain our Underweight stance on the industry and our 2017 TIV forecast at 586.5k units (+1.1% YoY). Our forecast reflects a slight recovery in TIV as we anticipate consumers that have delayed their purchases in 2016 to finally relent and yield to attractive packages and product offerings. Furthermore, new models such as the Honda BR-V, the all-new Mazda CX-5, expected Toyota C-HR, and possibly a 3rd Gen Myvi will excite the market. On the other hand, stringent HP loan requirements will continue to subdue growth in TIV. BAuto is rated as Buy with TP of RM2.36 due to its handsome dividends and potential growth from the export market. Meanwhile, UMW and MBM Resources are rated as Sell with TP of RM5.12 and RM2.04, respectively. Page 1 of 5 www.taonline.com.my
14. TA Securities 20-Apr-17 A Member of the TA Group Figure 1 : Breakdown of TIV Feb-17 38,881 3,574 42,455 Mar-17 48,355 5,362 53,717 % MoM 24.4 50.0 26.5 % YoY 12.2 (5.9) 10.1 3M2016 117,084 14,167 131,251 3M2017 127,530 13,309 140,839 % YoY 8.9 (6.1) 7.3 Mar-16 Feb-17 Mar-17 % MoM % YoY 3M2016 3M2017 % YoY 17,629 5,535 23,164 16,603 6,099 22,702 19,459 6,070 25,529 17.2 (0.5) 12.5 10.4 9.7 10.2 47,181 19,225 66,406 50,265 19,376 69,641 6.5 0.8 4.9 Non-national BMW Mercedes Honda Nissan Toyota Mazda VW Others Total 641 982 7,418 3,523 3,035 1,376 649 2,300 19,924 650 900 7,695 1,416 3,274 449 275 1,520 16,179 850 1,140 10,994 1,963 4,391 806 491 2,191 22,826 30.8 26.7 42.9 38.6 34.1 79.5 78.5 44.1 41.1 32.6 16.1 48.2 (44.3) 44.7 (41.4) (24.3) (4.7) 14.6 1,813 2,662 18,777 9,134 6,770 3,415 1,592 6,515 50,678 2,138 2,951 27,283 4,540 12,106 2,044 1,093 5,734 57,889 17.9 10.9 45.3 (50.3) 78.8 (40.1) (31.3) (12.0) 14.2 Grand Total 43,088 38,881 48,355 24.4 12.2 117,084 127,530 8.9 Mar-16 437 1,114 928 827 1,284 40 1,070 5,700 Feb-17 126 682 427 392 1,256 11 680 3,574 Mar-17 239 1,111 800 663 1,771 12 766 5,362 % MoM 89.7 62.9 87.4 69.1 41.0 9.1 12.6 50.0 % YoY (45.3) (0.3) (13.8) (19.8) 37.9 (70.0) (28.4) (5.9) 3M2016 1,216 2,589 2,221 1,639 3,446 137 2,919 14,167 3M2017 665 2,536 1,901 1,449 4,397 38 2,323 13,309 % YoY (45.3) (2.0) (14.4) (11.6) 27.6 (72.3) (20.4) (6.1) Passenger Commercial TIV Source: MAA, TA Research Mar-16 43,088 5,700 48,788 Figure 2: Breakdown of TIV by segments Passenger vehicles National Perodua Proton Total Commercial vehicles Hino Isuzu Mitsubishi Nissan Toyota Mazda Others Total Source: MAA, TA Research Figure 3: Breakdown by main manufacturers/distributors UMW Toyota (Passenger cars) Lexus Toyota (Commercial) Total Perodua Grand total Mar-16 3,035 121 1,284 4,440 17,629 22,069 Feb-17 3,274 51 1,256 4,581 16,603 21,184 Mar-17 4,391 73 1,771 6,235 19,459 25,694 % MoM 34.1 43.1 41.0 36.1 17.2 21.3 % YoY 44.7 (39.7) 37.9 40.4 10.4 16.4 3M2016 6,770 272 3,446 10,488 47,181 57,669 3M2017 12,106 191 4,397 16,694 50,265 66,959 % YoY 78.8 (29.8) 27.6 59.2 6.5 16.1 Tan Chong Nissan (Passenger cars) Renault Nissan (Commercial) Total Mar-16 3,523 26 827 4,376 Feb-17 1,416 22 392 1,830 Mar-17 1,963 66 663 2,692 % MoM 38.6 200.0 69.1 47.1 % YoY (44.3) 153.8 (19.8) (38.5) 3M2016 9,134 109 1,639 10,882 3M2017 4,540 139 1,449 6,128 % YoY (50.3) 27.5 (11.6) (43.7) Bermaz Auto Mazda (Passenger cars) Mazda (Commercial) Total Mar-16 1,376 40 1,416 Feb-17 449 11 460 Mar-17 806 12 818 % MoM 79.5 9.1 77.8 % YoY (41.4) (70.0) (42.2) 3M2016 3,415 137 3,552 3M2017 2,044 38 2,082 % YoY (40.1) (72.3) (41.4) MBM Resources VW Volvo Mitsubishi Hino Daihatsu Total Source: MAA, TA Research Mar-16 649 84 928 437 78 2,176 Feb-17 275 76 427 126 56 960 Mar-17 491 89 800 239 84 1,703 % MoM 78.5 17.1 87.4 89.7 50.0 77.4 % YoY (24.3) 6.0 (13.8) (45.3) 7.7 (21.7) 3M2016 1,592 178 2,221 1,216 204 5,411 3M2017 1,093 191 1,901 665 181 4,031 % YoY (31.3) 7.3 (14.4) (45.3) (11.3) (25.5) Page 2 of 5
15. Jan-13 Sep-13 Source : MAA, TA Research Page 3 of 5 Sep-14 Mar-17 Jan-17 Oct-16 Jul-16 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Oct-14 Jul-14 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 Jan-14 Nov-13 A Member of the TA Group Jan-17 Nov-16 Sep-16 Others Jul-16 May-16 Mar-16 Jan-16 Honda Nov-15 Sep-15 Jul-15 May-15 Nissan Mar-15 Jan-15 Nov-14 Toyota Jul-14 Apr-14 National May-14 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 TIV (LHS) Mar-14 Jan-14 Perodua Nov-13 Jul-13 Apr-13 Jan-11 Mar-11 unit Jul-13 May-13 Jan-13 Oct-12 Jul-12 Apr-12 Jan-12 Oct-11 Jul-11 Apr-11 Jan-11 75% Mar-13 Proton Nov-12 Sep-12 Jul-12 May-12 % 45 Mar-12 Jan-12 Nov-11 Sep-11 Jul-11 May-11 Mar-11 Jan-11 TA Securities 20-Apr-17 Figure 4: TIV vs. YoY growth 80,000 YoY Growth (RHS) 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) 70% 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
16. TA Securities 20-Apr-17 A Member of the TA Group Figure 7 : TIV (MoM change) Jan + + + - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Feb + + - *+ : increase, - : decrease Mar + + + + + + + + + + + + + + Apr + - May + + + + + + + + Jun + + + + + + + + + + Jul + + + + + + + + + - Aug + + + + + + Sep + + + + - Oct + + + + + + + - Nov + + + + + + Dec + + + + + + + + + + Hari Raya Month Source: MAA, TA Research Figure 8: Cumulative Sales Volume (YoY growth) 3M17 2M17 Figure 9: TIV On Half Year Basis (unit) 1M17 1H 350,000 45% 43% 50% Honda 300,000 -44% -48% -57% Nissan 250,000 200,000 62% 75% Toyota 95% 150,000 7% 4% Perodua 100,000 -9% 1% Proton 2H 50,000 -3% -7% 0 -50% 0% 50% 100% 150% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: MAA, TA Research Source: MAA, TA Research Figure 10: Monthly Sales Volume Breakdown by Brand (unit) Figure 11: Market share (%) Mar-16 Feb-17 Mar-17 % Mar-16 17,629 16,603 19,459 40 35 30 Toyota Nissan 5 2.9 1.1 1.5 4.3 4.9 10 8.9 15 8.9 10.7 11.5 8,121 5,260 7,588 20 11.3 14.4 11.3 25 1,416 460 818 5,000 4,350 1,808 2,626 5,535 6,099 6,070 10,000 4,319 4,530 6,162 15,000 7,418 7,695 10,994 20,000 Mar-17 36.1 39.1 36.2 45 25,000 Feb-17 15.2 18.1 20.5 -100% 0 0 Proton Perodua Source: MAA, TA Research Toyota Nissan Honda Mazda Proton Others Perodua Source: MAA, TA Research Page 4 of 5 Honda Mazda
17. TA Securities 20-Apr-17 A Member of the TA Group Figure 12 : YTD Sales Volume Breakdown by Brand (unit) 3M2017 50,000 3M2017 35.9 35.7 60,000 3M2016 % 47,181 50,265 3M2016 Figure 13: YTD Market Share (%) 40 35 30 10 2.7 1.5 5 0 16.4 13.7 19.4 14.3 8.2 11.7 7.8 15 14.6 13.8 21,527 19,341 20 4.3 10,000 25 3,552 2,082 10,773 5,989 20,000 10,216 16,503 19,225 19,376 30,000 18,777 27,283 40,000 0 Perodua Toyota Nissan Honda Mazda Others Proton Perodua Toyota Nissan Honda Mazda Others Source: MAA, TA Research Source: MAA, TA Research Figure 14: National vs. Non-national (Sales Volume)-Monthly Figure 15: National vs. Non-national (Market share)-Monthly Non-National National Source: MAA, TA Research Sep-16 May-16 Jan-16 Sep-15 May-15 Jan-15 Sep-14 May-14 Jan-14 Sep-13 Jan-13 May-13 Jan-11 Jan-17 Sep-16 May-16 Jan-16 Sep-15 May-15 Jan-15 Sep-14 Jan-14 May-14 Sep-13 Jan-13 May-13 Sep-12 Jan-12 May-12 Sep-11 Jan-11 May-11 15,000 Sep-12 20,000 Jan-12 25,000 May-12 30,000 Sep-11 35,000 Figure 16: Peers Comparison Price Tgt.Price Company (RM) (RM) MBM Resources 2.36 2.04 UMW 6.08 5.12 BAuto 2.08 2.36 Average Non-National 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 40,000 May-11 National 45,000 Jan-17 Proton Source: MAA, TA Research Call Sell Sell Buy PE (x) CY17 CY18 10.4 9.9 34.4 22.1 14.8 12.2 19.9 14.7 PB(x) CY17 CY18 0.5 0.5 1.4 1.4 4.1 3.9 2.0 1.9 Dividend Yield (%) CY17 CY18 3.8 3.8 1.8 1.8 7.0 8.2 4.2 4.6 ROE (%) CY17 CY18 4.6 4.6 4.2 6.2 27.9 32.3 12.2 14.4 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. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 5 of 5
18. TA Securities A Member of the TA Group MENARA TA ONE , 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 R E S U L T S U P D A T E Thursday, April 20, 2017 FBMKLCI: 1,738.95 Sector: Construction Gadang Holdings Bhd TP: RM1.55(+22.0%) Exceptional Construction Margin Last traded: RM1.27 BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Ooi Beng Hooi Tel: +603-2167 9612 benghooi@ta.com.my Results Review Gadang’s 9MFY17 net profit of RM70.4mn came in above expectations, accounting for 84.3% and 82.3% of ours and consensus’ full-year estimates. The variance was due mainly to higher-than-expected construction margin. YoY, 9MFY17 net profit was 10.5% higher at RM70.4mn despite a lower revenue of 10.8% at RM381.0mn. The improvement in the bottom line was a result of increased PBT from its property division (+38.8%), which partially offset by 6.5% drop in construction PBT as construction revenue dropped 38.1% during the corresponding period. Even though lower construction revenue was recorded in 9MFY17, which was due to low outstanding order book in hand before it secured the sizable MRT package V206 in March 2017, its construction margin jumped by 8.5%-pts to 25.3%. We believe the exceptional margin was boosted by recognition of variation orders. QoQ, 3QFY17 revenue and net profit eased 13.1% and 7.6% respectively. Higher construction PBT (+51.1% as PBT margin surged 11.8% pts to 32.8% pts) was offset by lower property PBT (-11.8%) and higher tax. The group’s net cash position eased slightly from RM67.4mn a quarter ago to RM55.6mn, or 8.5sen/share. Impact Following the stronger-than-expected results, we adjust our construction margin assumptions and raise FY17 earnings forecasts by 14.3%. Outlook The outstanding construction order book stood at RM1.4bn as of endFebruary 2017, translating into 2.9xFY16 construction revenue. For its property division, its unbilled sales dropped to RM164.2mn (approximately 1.0x FY16 property revenue), versus RM187.2mn a quarter ago. Going forward, we anticipate the launch of 469 units of PRIMA apartment and 194 double storey house at Laman View, Cyberjaya to boost the property sales. Share Information Bloomberg Code Bursa 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 (x) Major Shareholders (%) GADG MK GADANG 9261 Main Market 652.7 835.5 0.50 1.35/0.78 6547.4 65.1 0.71 Meloria Sdn Bhd - 13.40 Sumber Raswira Sdn Bhd - 12.47 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus (RM'mn) TA's / Consensus (%) Previous Rating FY17 FY18 14.3 0.0 95.4 85.6 85.5 93.7 111.5 91.3 Buy (Maintained) Scorecard vs TA vs Consensus % of FY 84.3 82.3 Above Above Financial Indicators FY17 FY18 Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) net cash 0.8 161.3 8.3 0.8 1.7 net cash (6.7) nm 7.7 0.9 1.5 Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth GADANG (2.3) 21.0 3.4 63.2 FBM KLCI (0.4) 4.3 4.2 1.6 (12-Mth) Share Price relative to the FBM KLCI Valuation We roll forward our valuation base year to CY18 and raise the target price from RM1.45 to RM1.55, based on 14x CY18 construction earnings, 8x CY18 property earnings, 12x CY18 utility earnings, and assigned value of RM25k/ha for its oil palm plantation landbank. Maintain our BUY call on the stock. Source: Bloomberg Page 1 of 3 www.taonline.com.my
19. TA Securities 20-Apr-17 A Member of the TA Group Exhibit 1 : Sum-of-parts valuation SOP valuation (RMmn) Remark Construction 454.8 14x CY18 net profit Property 486.6 8x CY18 net profit Utilities 68.4 12x CY18 net profit Plantation 52.4 RM25k/ha Warrant conversion 137.1 TOTAL 1199.2 Enlarged share base 775.9 Target price 1.55 Earnings Summary FYE May (RMmn) Revenue Gross profit EBITDA EBITDA margin EBIT PBT Core PBT Net profit Core net profit Core EPS PER Gross dividend Dividend yield ROE (%) (sen) (x) (sen) (%) (%) FY15 587.4 126.2 92.9 15.8 87.3 84.8 84.8 59.6 59.6 11.2 11.4 2.0 1.6 17.5 FY16 675.4 155.7 131.7 19.5 127.1 124.5 124.5 94.8 94.8 16.4 7.8 2.8 2.2 20.8 Page 2 of 3 FY17F 567.6 124.9 141.1 24.9 133.0 129.5 129.5 95.4 95.4 14.8 8.6 2.8 2.2 16.7 FY18F 695.0 152.9 129.8 18.7 120.3 116.7 116.7 85.6 85.6 13.2 9.6 2.8 2.2 13.1 FY19F 773.4 177.9 155.9 20.2 144.2 141.3 141.3 101.9 101.9 15.8 8.1 2.8 2.2 13.8
20. TA Securities 20-Apr-17 A Member of the TA Group 3QFY17 Results Analysis FYE May (RMmn) Revenue - Construction - Property - Utility - Plantation Cost of Sales Gross profit Operating profit Finance Costs PBT Core PBT - Construction - Property - Utility - Investment - Plantation Income tax expense Net profit Core net profit Reported EPS (sen) EPS (sen) Dividend (sen) Margin (%): Core PBT - Construction - Property - Utility - Plantation Core Net Profit Effective tax rate 3Q16 175.9 122.7 47.4 5.5 0.3 (131.8) 44.1 35.6 (0.7) 34.9 34.9 22.0 13.3 1.6 (1.5) (0.6) (9.4) 25.1 25.1 2Q17 147.9 73.1 68.0 6.0 0.8 (105.5) 42.4 36.8 (0.7) 36.1 36.1 15.4 19.2 1.8 0.0 (0.3) (8.2) 27.9 27.9 3Q17 QoQ (%) 128.5 (13.1) 70.8 (3.1) 51.8 (23.8) 5.5 (9.5) 0.5 (35.2) (77.9) (26.1) 50.6 19.4 37.2 1.1 (0.5) (29.5) 36.7 1.7 36.7 1.7 23.2 51.1 16.9 (11.8) 0.9 (48.8) (4.0) <(100.0) (0.3) 29.8 (10.7) 31.1 25.8 (7.6) 25.8 (7.6) YoY (%) 9MFY16 9MFY17 YoY (%) (26.9) 427.3 381.0 (10.8) (42.3) 300.6 186.0 (38.1) 9.4 109.4 176.0 60.9 (0.9) 16.0 17.0 6.3 56.3 1.2 2.0 61.4 (40.9) (318.7) (257.5) (19.2) 14.7 108.6 123.5 13.7 4.5 88.2 96.7 9.6 (27.2) (1.9) (1.7) (9.0) 5.2 86.3 94.9 10.0 5.2 86.3 94.9 10.0 5.4 50.3 47.0 (6.5) 26.7 35.7 49.5 38.8 (42.4) 3.6 4.6 25.8 174.9 (1.9) (5.2) 170.7 (44.9) (1.4) (1.0) (31.0) 13.9 (22.4) (24.4) 9.0 2.7 63.7 70.4 10.5 2.7 63.7 70.4 10.5 4.5 4.5 0.0 4.2 4.2 0.0 6.6 6.6 0.0 55.8 55.8 na 47.4 47.4 na 11.3 11.3 0.0 13.5 13.5 0.0 19.1 19.1 na 19.8 18.0 28.2 28.9 (195.3) 14.3 26.9 24.4 21.0 28.2 29.6 (34.4) 18.9 22.6 28.6 32.8 32.6 16.8 (68.8) 20.1 29.2 % pts 4.1 11.8 4.4 6.5 (34.4) 1.2 6.5 % pts 8.7 14.9 4.5 2.2 126.4 5.8 2.2 20.2 16.7 32.6 25.9 (113.8) 14.9 25.9 24.9 25.3 28.1 25.7 (48.6) 18.5 25.7 % pts 4.7 8.5 (4.5) (0.2) 65.1 3.6 (0.2) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
21. TA Securities COMPANY UPDATE Thursday , 20 April 2017 FBMKLCI: 1,738.95 A Member of the TA Group Sector: Property MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 TP: RM1.09 (+2.4%) Hua Yang Berhad Last traded: RM1.06 Increasing its Stake in Magna Prima to 31% Under Review THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Thiam Chiann Wen Tel: +603-2167-9615 cwthiam@ta.com.my Acquiring another 20.1% Stake in Magna Prima Bhd Within a short span of less than 3 months, Hua Yang announced that it will spend RM123.7mn to increase its stake in Magna Prima Bhd (MPB) to 31%. Recall, Hua Yang had acquired 36mn shares (or 10.8% stake) in MPB for a cash consideration of RM66.6mn or RM1.85/MPB share via an off-market direct business transaction in Jan – refer report dated 26 January 2017. According to announcement, Hua Yang has entered into a conditional share sale agreement with Fantastic Realty Sdn Bhd, Le Shu Shun, Lee Kok Meng, Lee Kok Meng, Tap Fatt Thai, Kok Sew Hong and Kok Siew Hwa (the vendors) for a proposed acquisition of 66.9mn shares (or 20.12% stake) in MPB for a total consideration of RM123.7mn or RM1.85/MPB share. Post the completion of the share sale, Fantastic Realty Sdn Bhd’s stake will decrease to 13.6% from 20.6% previously. Upon completion of the acquisition, Hua Yang will emerge as the single largest shareholder of MPB. As Hua Yang’s shareholding in MPB is not expected to exceed 33%, hence it will not trigger the conditions for a mandatory general offer. The acquisition is expected to complete by 2Q17, subject to subject to shareholders’ approval at extra ordinary meeting to be held later. www.taonline.com.my Share Information Bl oomberg Code HYB MK Stock Na me HUAYANG Stock Code 5062 Li s ti ng Ma i n Ma rket Sha re Ca p (mn) 352.0 Ma rket Ca p (RMmn) 373.1 Pa r Va l ue 1.00 52-wk Hi /Lo (RM) 1.43/1.05 12-mth Avg Da i l y Vol ('000 s hrs ) 248.3 Es tima ted Free Fl oa t (%) 58.4 Beta 0.6 Major Shareholders (%) Heng Hol dings - 31.1 Forecast Revision Foreca s t Revis i on (%) Net profi t (RMm) Cons ens us TA's / Cons ens us (%) Previ ous Ra ti ng A Fair Acquisition Price Hua Yang has offered to pay the same acquisition price for the additional 20.1% stake. Given MPB’s share price has retraced 5.5% to RM1.54 from RM1.63 levels in January, the acquisition price is now represents a higher premium of 20.1% (vs. 13.5% premium in Jan). Based on 2016 unaudited results, the price tag translates into 13.4x MPB’s earnings and P/NAV of 1.0x (NAV of RM1.80/share as of 4Q16). In comparison, the average small cap property stocks’ CY16 PER and P/NAV are 10.9x and 0.8x respectively, based on our research universe. Nevertheless, we deem the acquisition price is fair. Figure 1 shows that the recent M&A deals in the property sector are concluded at a P/NAV of 1.1x. Excluding privatisation offers from the major shareholders, which usually value the company below its book, the average P/NAV of the past acquisitions is 1.4x. Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth 0.0 61.4 80.8 76.0 Sel l (Under Revi ew) FY17 FY18 32.2 1.3 84.4 12.4 7.2 1.7 0.6 27.8 9.7 11.0 9.9 6.0 1.8 0.6 HUAYANG FBM KLCI (7.8) (0.9) (15.9) (22.3) (0.6) 4.4 4.3 1.8 (12mths)Share Price relative to the FBM KLCI Our View The acquisition will present an opportunity to Hua Yang to invest strategic landbank, given that MPB’s landbanks are situated in prime area within the Klang Valley – see Figure 2 for MPB’s landbank. With Hua Yang’s stake in MPB increasing to 31% and Mr Ho Wen Yan, the CEO of Hua Yang has been appointed as an executive director of MPB since Feb, we foresee that Hua Yang will likely be given the priority to participate in MPB’s future property development. Page 1 of 3 FY18 0.0 70.4 73.2 96.1 Financial Indicators Net Debt / Equi ty (%) FCFPS (s en) Pri ce / CFPS (x) ROE (%) ROA (%) NTA/Sha re (RM) Pri ce/NTA (x) In addition, MPB will become an associate of Hua Yang upon the completion of the proposed acquisition. As such, Hua Yang will be able to recognize its proportionate share of MPB’s future profit. We see Hua Yang’s net gearing to FY17 Source: Bloomberg
22. TA Securities 20-Apr-17 A Member of the TA Group increase to 49 % from 32% as at Dec-16, assuming the purchase is financed entirely through borrowing. Under Review We place our forecasts, target price of RM1.09/share and recommendation under review pending a conference call to be held later today. Table 1: Notable M&A, Privatisation Transaction and Proposals in the Property Sector Date May-05 Apr-07 Apr-07 Nov-07 Nov-07 Feb-09 Nov-10 Nov-10 Aug-11 Sep-11 Feb-12 Jun-14 Oct-14 Oct-14 Mar-15 Apr-16 Apr-16 Apr-17 Acquirer Target PNB PNB PNB WCT E&O IOI Corp UEMLand Sunway Bhd Sime Darby PNB Iskandar Waterfront IJM Corp OSK Holding OSK Holding KTTH Tan Sri Dr Chen Lip Keong Tan Sri Dr Chen Lip Keong SP Setia Pelangi Island & Peninsular Petaling Garden WCT Land E&O Property IOI Properties Sunrise Suncity E&O SP Setia Tebrau Teguh IJM Land OSK Prop PJ Development Hunza Properties Karambunai Corp Petaling Tin I&P Deal Type Privatisation Privatisation Privatisation Privatisation Merger Privatisation Take Over Merger Acquisition - 31% stake Take Over Acquisition - 33.15% stake Privatisation Privatisation Privatisation Privatisation Privatisation Privatisation Take Over Source: Media, Bursa Malaysia, TA Research Figure 2: MPB’s Landbank Source: Bursa Malaysia, TA Research Page 2 of 3 Price Premiums Majority Owned over last traded Offer Price (RM) by Acquirer before announcement Yes, 49% 22% 0.77 Yes, 66% 31% 2.35 Yes , 49% 23% 2.50 Yes, 65% 10% 2.09 Yes, 63% 2%* 2.50 Yes, 75% 17% 2.60 No 20% 2.80 No 14% 5.10 No 57% 2.30 Yes, 33.2% 11% 3.95 No 1% 0.76 Yes, 64% 11% 3.55 Yes, 73.6% -12% 2.00 Yes, 31.7% -10% 1.60 Yes, 32.3% 19% 2.50 Yes, 76.15% -9% 0.05 Yes, 65.07% -8% 0.24 No Private Co RM3.5-3.75bn Average P/NAV Average P/NAV excludes privatisation deal NAV P/NAV 1.2 2.9 1.7 1.5 1.8 4.0 2.2 5.1 1.2 1.8 0.8 2.1 1.9 2.5 3.5 0.1 1.0 RM3.16bn 0.7 0.8 1.5 1.4 1.4 0.7 1.3 1.0 1.9 2.2 1.0 1.7 1.1 0.6 0.7 0.3 0.2 1.2 1.1 1.4
23. TA Securities 20-Apr-17 A Member of the TA Group Earnings Summary (RM mn) Profit & Loss (RMm) YE Mar 31 Revenue EBITDA Dep. & amortisation Net finance cost PBT Taxation MI Net profit Core net profit Reported EPS (diluted) Core EPS (diluted) PER GDPS Div Yield EV/EBITDA (sen) (sen) (x) (sen) (%) (x) Cash Flow (RMm) YE Mar 31 PBT Adjustments Dep. & amortisation Changes in WC Operational cash flow Capex Others Investment cash flow Debt raised/(repaid) Equity raised(repaid) Dividend Others Financial cash flow Net cash flow Assumptions YE Mar 31 New Sales Property Development Margins 2015 583.6 155.9 (1.0) (1.5) 153.4 (42.9) 0.0 110.6 110.6 31.4 31.4 3.4 9.8 9.2 2.2 2016 575.7 153.1 (2.5) (0.6) 144.8 (34.6) 0.0 110.1 110.1 31.3 31.3 3.4 3.8 3.5 1.9 2017f 405.0 98.5 (1.2) (2.2) 95.2 (24.7) 0.0 70.4 70.4 20.0 20.0 5.3 4.0 3.8 3.1 2018f 344.1 87.4 (2.3) (2.1) 83.0 (21.6) 0.0 61.4 61.4 17.4 17.4 6.1 3.5 3.3 3.4 2019f 366.2 90.9 (3.3) (2.0) 85.7 (22.3) 0.0 63.4 63.4 18.0 18.0 5.9 3.5 3.3 3.1 2015 153.4 (34.0) 1.0 (19.1) 101.4 (69.5) (2.6) (72.2) 18.9 0.0 (44.9) 0.0 (26.0) 3.2 2016 144.8 (45.3) 2.5 63.7 165.7 (67.2) (17.4) (84.6) (38.2) 0.0 (34.3) 0.0 (72.5) 8.6 2017f 95.2 (24.7) 1.2 1.7 73.3 (60.0) (10.0) (70.0) (10.0) 0.0 (14.1) 0.0 (24.1) (20.8) 2018f 83.0 (21.6) 2.3 1.8 65.5 (30.0) (10.0) (40.0) (10.0) 0.0 (12.3) 0.0 (22.3) 3.2 2019f 85.7 (22.3) 3.3 1.8 68.5 (30.0) (10.0) (40.0) (15.0) 0.0 (12.3) 0.0 (27.3) 1.2 (RM mn) 2015 460.0 2016 336.8 2017f 241.1 2018f 383.8 2019f 485.0 (%) 26.5 25.0 24.2 24.9 24.1 Balance Sheet (RMm) YE Mar 31 Fixed assets Others Total Cash Others CA 2015 409.1 20.3 429.4 40.9 458.1 499.0 2016 433.0 28.7 461.8 45.8 444.4 490.2 Total assets 928.4 952.0 1,002.7 ST debt Other liabilities CL Shareholders' funds LT borrowings LT liabilities Total long term Liabilities 78.6 172.7 251.3 465.9 192.1 19.2 211.3 59.0 161.0 220.1 541.7 169.9 20.3 190.2 Total Equity and Liabilities 928.4 952.0 1,002.7 Ratio YE Mar 31 Profitability ratios ROE ROA EBITDA Margins PBT Margins 2017f 501.9 28.7 530.6 25.1 447.1 472.1 61.5 165.4 227.0 598.0 157.4 20.3 177.7 2018f 539.6 28.7 568.3 28.2 449.8 478.1 2019f 576.3 28.7 605.0 29.4 452.7 482.1 1,046.3 1,087.1 64.0 170.0 234.0 647.1 144.9 20.3 165.2 66.3 174.6 240.9 698.2 127.7 20.3 148.0 1,046.3 1,087.1 2015 2016 2017f 2018f 2019f (%) (%) (%) (%) 25.9 12.6 26.7 26.3 21.9 11.7 26.6 25.1 12.4 7.2 24.3 23.5 9.9 6.0 25.4 24.1 9.4 5.9 24.8 23.4 Liquidity ratios Current ratio Quick ratio (x) (x) 2.0 1.8 2.2 2.0 2.1 2.0 2.0 1.9 2.0 1.9 Leverage ratios Total liabilities / equity Net debt / Equity (x) (x) 1.0 0.5 0.8 0.3 0.7 0.3 0.6 0.3 0.6 0.2 Growth ratios Revenue Pretax Profit Core net earnings Total assets (%) (%) (%) (%) 14.5 36.6 34.5 11.5 (1.3) (5.7) (0.4) 2.5 (29.7) (34.3) (36.1) 5.3 (15.0) (12.8) (12.8) 4.4 6.4 3.2 3.2 3.9 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
24. TA Securities ECONOMIC REPORT Thursday , April 20, 2017 FBMKLCI: 1,738.95 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Malaysian Economy Inflation Accelerates Further in March 2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage shazma@ta.com.my farid@ta.com.my Tel: +603-2167 9608 Key Summary: • Malaysia headline inflation rose in March 2017 reflected from the higher cost of transportation, health as well as food, marking the highest inflationary pressure since November 2008. Headline inflation as measured by the Consumer Price Index (CPI) climbed by 5.1% YoY to 119.6 points. This was below consensus projection of 5.2% YoY but matched ours. CPI gained by 4.5% YoY in February 2017. • Low base factor played a major role of the increase as CPI grew by only 2.6% YoY in March last year. On a monthly basis, CPI actually contracted by 0.1% MoM as compared with 1.3% MoM gain in February 2017. Also, core-CPI rose by 2.5% YoY, unchanged from the previous month, or increased by only 0.1% MoM. • The Transport Index jumped by a significant 23.0% YoY during the month, as the average price of retail pump price (RON95/97 & Diesel) increased by 46.9% YoY to RM2.40 per litre (March 2016: RM1.60 per litre). Also, the gain during the month reflected the low base effect as Transport Index had declined by 4.9% YoY in the same period last year. In addition, Food & Non-alcoholic Beverage price growth still above 4.0% despite moderated to 4.1% YoY during the month as compared with 4.3% YoY gain in February 2017. • Inflationary pressures are seen building up, especially in the first half of the year. In fact, Malaysia’s CPI in the 1Q17 hit 4.3% YoY, the highest since 4Q08 (it was 1.7% YoY in 4Q16 and 3.4% YoY in the 1Q16). The increase was driven by a significant rise in Transport Index following higher retail pump prices as compared to last year along with higher food prices. • We predict consumer prices to be higher in the first half before moderating in the second half of this year. Note that the inflation pressure is coming from the cost-push factor and not related to demand-pull, so it is unlikely to persist. We forecast April 2017 CPI to remain high albeit at a lesser pace of 4.5% YoY. • Hence, we are maintaining our 2017 inflation forecast at 3.9% YoY at this juncture. That put our forecast at the higher end of Bank Negara’s forecast of 3.0% to 4.0% level. Indeed, the central bank commented that there is a possibility of inflation rate going beyond 4.0% level this year, especially if global crude oil price rise above USD60 per barrel. Global crude oil currently hovering at USD54.73 per barrel at the point of writing. • Increasing inflation implies that real policy rate (OPR) will be negative, which could prompt a tightening bias in the monetary policy. We are now in the third of month of negative rate of return. In the last MPC meeting on 2 March 2017, Bank Negara held its policy rate steady at 3.00%. We would keep an eye on the upcoming 12th May MPC statement for changes in the assessment on demand pull and core inflation — a more hawkish tilt on those fronts could signal a hike as early as July 2017. Page 1 of 4 www.taonline.com.my d o m e s
25. TA Securities 20-Apr-17 A Member of the TA Group Inflation Stays Elevated at 5 .1% YoY in March 2017 • Malaysia’s CPI continued to remain high in March 2017, elevating from 4.5% YoY in February 2017 to 5.1% YoY. The current rate is the highest in 8 years – it was 5.2% YoY in November 2008. It was slightly lower than consensus projections of 5.2% YoY but matched ours (TA Forecast: 5.1% YoY). • The significant increase was widely expected as it was due to the low base last year (March 2016: 2.6% YoY) and higher retail fuel prices compared to March 2016. On a monthly basis, CPI actually dropped by 0.1% MoM. Figure 1: CPI Performance (January 2008 – March 2017) YoY % Mar 17: forecast 5.1% YoY 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 -4.0% Sources: Department of Statistics, TA Securities • Most of the sub-CPI baskets posted a higher growth during the month, including Food & Nonalcoholic Beverages; Housing, Water, Electricity, Gas & Other Fuels; and Restaurant & Hotels as well as Health. Only two groups (Clothing & Footwear; and Communication) recorded a decline. The Transport Index showed a significant increase of 23.0% YoY in March 2017 due to the low base effect, as it contracted by 8.2% YoY in same period last year. Apart from that, the increase was due to higher retail pump price during the month. To recap, the average price of 1 litre of RON95 petrol was RM2.30 in March 2017 as compared to RM1.60 in March 2016. As for RON97, the average price increased to RM2.60 in March 2017 from RM1.95 in March 2016. As a result, sub-component of Fuels & Lubricants for Personal Transport Equipment spiked by double digit growth of 42.1% YoY in March 2017 (February 2017: 31.3% YoY). - Prices of Food & Non-alcoholic Beverages seen to be moderated during the month, but still high 4.1% YoY. This is compared with 4.3% YoY gain in February 2017 and 4.0% YoY in January 2017. The increase was driven by food sub-group which encapsulated of Oils & Fats (+38.8% YoY; +0.6% MoM); Food Products (+5.0% YoY; +0.2% MoM); Sugar, Jam, Honey, Chocolate & Confectionery (+1.5% YoY; 1.2% MoM); and Rice, Bread & Other Cereals (+0.7% YoY; +0.1% MoM). Meanwhile, price for Meat, Vegetables, Fish & Seafood, and Milk & Eggs decline on a monthly basis by 1.8%, 4.6%, 0.1% and 0.2% MoM, respectively. Price of cooking oil was persistently high at 47.2% YoY following the rationalisation of the Cooking Oil Price Stabilisation Scheme (COSS) since November last year. Costlier food and non-alcoholic beverages was reflected in most states in Malaysia especially those in highly urbanised states such as (1) Melaka (+5.0% YoY); (2) Kuala Lumpur (+4.6% YoY); (3) Selangor & Putrajaya (+4.5% YoY); (4) Johor (+4.5% YoY); and (5) Penang (+4.3% YoY). As for Food Away From Home Index, it continued to rise in March 2017 to 4.4% YoY as compared with 4.1% YoY previously. - Cost of Health also showed an increase in March 2017 as the index grew by 2.6% YoY as compared with February’s 2.4% YoY increase. The gain was mainly due to the higher cost of Medical Products, Appliances & Equipment (March 2017: +2.2% YoY; Page 2 of 4
26. TA Securities 20-Apr-17 A Member of the TA Group February 2017 : +2.1% YoY) and Outpatient Services (March 2017: +3.6% YoY; February 2017: +3.3% YoY). Figure 2: CPI Sub-components for 6 Months (October 2016-March 2017) YoY % Sub Components Wt. Consumer Price Index (CPI) 100.0 Food & Non-Alcoholic Beverages 30.2 Alcoholic Beverages & Tobacco 2.9 Clothing and Footwear 3.3 Housing, Water, Electricity, Gas & Other Fuels 23.8 Furnishings, Household Equip. & Routine Household 3.8 Maintenance Health 1.7 Transport 13.7 Communication 5.2 Recreation Services & Culture 4.9 Education 1.1 Restaurants and Hotels 2.9 Miscellaneous Goods & Services 6.5 2016 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 1Q17 2.1% 3.9% 17.2% -0.4% 2.4% 1.4% 2.5% 19.8% -0.5% 2.1% 1.8% 3.8% 1.9% -0.5% 2.1% 1.8% 3.7% 0.1% -0.5% 2.1% 3.2% 4.0% 0.2% -0.7% 1.9% 4.5% 4.3% 0.2% -0.2% 2.2% 5.1% 4.1% 0.2% -0.2% 2.1% 4.3% 4.2% 0.2% -0.4% 2.1% 2.4% 1.5% 1.4% 1.4% 1.5% 1.5% 1.5% 1.5% 2.7% -4.6% -1.6% 2.5% 2.2% 2.8% 2.9% 2.3% -5.5% -2.6% 3.5% 2.0% 2.0% 1.5% 2.5% -1.5% -2.7% 3.2% 1.9% 1.9% 1.8% 2.4% -0.6% -2.6% 3.3% 1.7% 1.9% 1.8% 2.5% 8.3% -0.2% 3.2% 2.0% 2.1% 1.4% 2.4% 17.9% -0.3% 3.1% 1.7% 2.3% 1.4% 2.6% 23.0% -0.2% 3.0% 1.7% 2.3% 1.3% 2.5% 16.2% -0.2% 3.1% 1.8% 2.3% 1.3% Sources: Department of Statistics, TA Securities Inflation to Remain High in the 1H2017 • We believe that consumer prices will probably remain high for the first half of the year. Apart from the low base effect, cost push factors will continue to dominate, mainly from the transport cost category. Since 30th March until 20 April 2017, the average pump price is RM2.25 per litre, which is 51 sen higher than April 2016. The quantum is lesser than the difference average of 77 sen in March 2017 vs March 2016. Hence, we expect the transport index may not be as significant as last month, thus may be pulling inflation slightly lower to 4.5% YoY in April 2017. Figure 3: Retail Pump Price in Malaysia (RM per Liter) Ron97 Ron95 Diesel Average Pump Price MoM Difference YoY Difference Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 2.25 2.05 1.95 2.05 2.05 2.05 2.10 2.10 1.85 1.75 1.60 1.70 1.70 1.70 1.75 1.75 1.60 1.35 1.35 1.55 1.55 1.55 1.60 1.70 1.90 1.72 1.63 1.77 1.77 1.77 1.82 1.85 -0.20 -0.18 -0.08 0.13 0.00 0.00 0.05 0.03 -0.08 -0.08 -0.42 -0.28 -0.28 -0.38 -0.43 -0.30 Sep-16 Oct-16 Nov-16 2.05 2.15 2.30 1.70 1.80 1.95 1.70 1.75 1.90 1.82 1.90 2.05 -0.03 0.08 0.15 -0.22 -0.23 -0.08 Dec-16 Jan-17 Feb-17 Mar-17 30 March - 20 Apr 2017 2.25 2.40 2.60 2.60 2.41 1.90 2.10 2.30 2.30 2.27 1.85 2.05 2.25 2.30 2.14 2.00 2.18 2.38 2.40 2.27 -0.05 0.18 0.20 0.02 -0.13 -0.10 0.28 0.67 0.77 0.51 Source: TA Securities • To recap, we have revised up our 2017 inflation forecast to 3.9% YoY, which is at the upper forecast range of BNM’s 3.0% to 4.0%. The upside pressure includes: A revision in fuel price every week that could exert price pressure on the transportation costs. With gradual increase in global oil price, we predict that this year’s retail pump price will be persistently higher than last year. Probable increases in Food & Non-alcoholic Beverages as a result of subsidies revamp especially with the upward adjustments in retail cooking oil and sugar as well as increase seen in global commodity prices. Starting 1 March 2017, the price of coarse granulated sugar has gone up by 11 sen to RM2.95 per kg. The old price was RM2.84 a kg. This is in view of the rise in world prices of raw sugar. The last price increase was in October 2013. Page 3 of 4 T t h e p
27. TA Securities 20-Apr-17 A Member of the TA Group - - Businesses may pass on higher costs to consumers following the new PCAP Act : The new 2016 Price Control & Anti-Profiteering Act effective 1 Jan 2017, which is limited to food & beverages and household items only, may lead to the opportunity for businesses to raise prices of other goods and services to pass on higher costs. Suggestion by the Government to increase average price of legal cigarettes which should be increased from RM17.00/pack to RM21.50/pack to curb smoking habits in Malaysia. This is an increase of astounding 26.5%. Note that tobacco contributes about 2.5% of Malaysian CPI basket. BNM to Raise OPR This Year? • In the last MPC meeting on 2 March 2017, Bank Negara held its policy rate steady at 3.00%. The last OPR hike was in July 2014, where Bank Negara raised OPR by 25 bps to 3.25% after experiencing 7 months of negative real interest rate. Historical showed that the central bank normally raised its interest rate after 3 – 6 months of negative rate of return. • As such, we believe that there is a possibility that the central bank may increase its OPR, probably by 25 bps, making it to 3.25% by year-end. We would keep an eye on the upcoming 12th May MPC statement for changes in the assessment on demand pull and core inflation — a more hawkish tilt on those fronts could signal a hike as early as July 2017. We are now in the third of month of negative rate of return. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 4 of 4
28. COMPANY UPDATE TA Securities Thursday , April 20, 2017 FBMKLCI: 1,738.95 Sector: Technology A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Malaysian Pacific Industries Berhad TP: RM13.15 (+12.0%) Last Traded: RM11.74 Plans in Place to Outpace Market Growth BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Paul Yap, CFA Tel: +603-2167 9603 paulyap@ta.com.my www.taonline.com.my MPI hosted its 3QFY17 results briefing. While 3QFY17 results came within expectations, it would have been better if not for the temporary wafer supply constraints in the power management segment. Premised on a seasonal rebound and pick up in wafer releases, we expect a much better 4QFY17. Aims are to increase automotive contributions to 50% of revenues in three to four years. Working backwards, we expect the group to outpace the market with a 4-year revenue CAGR of 8.0% YoY. In line with this, we raise our FY17/FY18/FY19 earnings by 5.9%/13.6%/19.9%. We also see opportunities for excitement from potential M&A activities. This will be automotive centric, with management looking to acquire technologies to improve existing capabilities. We maintain our BUY call on MPI with an increased TP of RM13.15/share. Share Information Bloomberg Code MPI MK Stock Code 3867 Listing Main Market 198.9 Share Cap (mn) 2,335.0 Market Cap (RMmn) 0.5 Par Value 12.22/6.86 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) 210.1 29.7 Estimated Free Float (%) 0.49 Beta Major Shareholders (%) Hong Leong Investment - 55.4 Wafer Constraints Although 3QFY17 profit came in within expectations (refer to report dated 19th April 2017), results would have been much stronger if not for the temporary wafer supply shortages experience by its top 3 customers. Constraints, we understand, were faced mainly in the power management segment. 3QFY17 USD revenue was down 4% QoQ, but up 5% YoY. As a positive, its stable automotive segment continues to gain traction, with revenues estimated to be up 2.8% QoQ. Due to a lower than anticipated load, margins were also affected by overtimes claimed during the festive period. Premised on a seasonal rebound and pick up in wafer releases, we expect a much better 4QFY17. Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating Investing in Automation Gearing towards automation, the group completed its investments in vision inspection equipment. However, immediate cost savings are unlikely to be realised, as the 519 workers are redirected to different roles to support expansion plans. 4QFY17 capex is expected to be minimal. Looking further ahead, FY18 capex is estimated to be similar to FY17 levels. Outgrowing the Market Once again, discussions during the briefing were centred on automotive efforts. Reiterating its aim, plans are to grow automotive revenue contributions to 50% (3QFY17: 50%) over the next two to four years. Based on our back of the envelope calculation, we estimate the group will need to achieve a revenue CAGR of 8.0% YoY over the next four years to meet this target. Backing these claims, its sales pipeline has been strengthening, with Carsem receiving an increasing number of NPIs (new product introduction). However, given the nature of the automotive business, this will require time but will provide increased stability to the business in the long run. Outlining Acquisition Targets Its balance sheet continues to improve, with net cash growing to RM419.7mn. Rewarding shareholders, a higher dividend total of 27.0sen/share (+17.4% YoY) was declared. Management remains on the lookout for automotive related acquisition targets. Providing more details, intentions are to acquire technologies to expand its existing capabilities. Examples provided include FOPage 1 of 3 Forecast Revision FY17 FY18 5.9 13.6 187.3 230.0 174.3 184.1 107.5 124.9 Buy (Maintained) Financial Indicators Net Debt/Equity (%) CFPS (sen) Price/CFPS (x) ROA (%) ROE (%) NTA/Share (RM) Price/NTA (x) Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth FY17 Net cash 188.0 6.2 12.7 17.9 5.3 2.2 FY18 Net cash 216.6 5.4 13.6 19.2 6.1 1.9 MPI 11.2 48.6 48.6 64.2 FBM KLCI (0.6) 4.4 4.3 1.8 (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg
29. TA Securities 20-Apr-17 A Member of the TA Group WLP , module level assembly, thermal material (>100 W/mK), 2.5D & 3D packaging, cavity package (film insert mold), tri-temp automotive strip test and new automotive requirement (AEQ100-06 & higher temperature). Targets are expected to be within the range of US$20-25mn. Revise Estimates Upwards We adjust our revenue and margin assumption to be in line with the group’s automotive ambitions. We raise our FY17/FY18/FY19 earnings by 5.9%/ 13.6%/19.9% to RM187.3mn/RM230.0mn/RM268.3mn. Valuation We increase our TP for MPI to RM13.15/share – based on an EV/EBITDA multiple of 4.0x and CY18 EBITDA. We left the briefing feeling upbeat about the group’s target to outgrow the market, through its focus on the automotive segment. Coupled with its high barriers to entry, we believe this will provide steady growth and stability to its business. We also see opportunities for excitement with the possibility of M&A related activities. As such, we retain our BUY recommendation on the group. Figure 1: USD Revenue Figure 2: Revenue Mix – Carsem and Dynacraft (%) US$mn Carsem % 94.0 100.0 92.0 95.0 92.0 Dynacraft 94.0 93.0 92.0 94.0 90.0 92.0 80.0 90.0 89.0 89.0 88.0 70.0 60.0 88.0 50.0 86.0 86.0 40.0 84.0 30.0 84.0 20.0 82.0 10.0 5.0 8.0 8.0 7.0 6.0 6.0 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 0.0 80.0 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 2QFY16 Source: Companies, TA Securities Source: Companies, TA Securities Figure 3: 2QFY17 Revenue Mix – End Segment (%) Figure 4: 3QFY17 Revenue Mix - End Segment (%) PC/Notebook, 11 PC/Notebook, 11 Other, 2 Other, 2 Automotive, 24 Consumer/ Communications , 41 Automotive, 25 Industrial, 22 Consumer/ Communications , 40 Industrial, 22 Source: Companies, TA Securities Source: Companies, TA Securities Page 2 of 3
30. TA Securities 20-Apr-17 A Member of the TA Group P &L FYE Jun 30 (RMmn) Revenue EBITDA Depreciation & amortisation EBIT Net finance costs Share of associates EI PBT Adj PBT Taxation MI Net profit Core net profit EPS (sen) DPS (sen) Ratios FYE Jun 30 (RMmn) Valuations PER EV/EBITDA Dividend yield PBV Profitability ratios ROAE ROAA EBITDA margin PBT margin Liquidity ratios Current ratio Quick ratio FY15 FY16 FY17F FY18F FY19F 1,390.1 1,463.3 1,561.9 1,692.0 1,812.9 358.4 420.2 477.5 532.1 582.9 (204.1) (209.4) (192.2) (184.4) (180.9) 154.3 210.8 285.3 347.7 402.0 (1.3) (1.1) 7.4 11.7 17.2 0.0 0.0 0.0 0.0 0.0 0.0 (13.3) 0.0 0.0 0.0 153.0 196.4 292.7 359.4 419.2 153.0 209.7 292.7 359.4 419.2 (30.4) 0.4 (58.5) (71.9) (83.8) (14.1) (39.3) (46.8) (57.5) (67.1) 108.5 157.5 187.3 230.0 268.3 108.5 170.8 187.3 230.0 268.3 51.7 81.4 89.2 109.6 127.8 20.0 23.0 27.0 27.0 27.0 FY15 FY16 FY17F FY18F FY19F 22.7 6.0 1.7 2.9 14.4 5.1 2.0 2.5 13.2 4.5 2.3 2.2 10.7 4.0 2.3 1.9 9.2 3.7 2.3 1.6 13.6 8.4 25.8 11.0 18.6 12.4 28.7 14.3 17.9 12.7 30.6 18.7 19.2 13.6 31.4 21.2 19.3 13.7 32.2 23.1 1.7 1.4 3.1 2.7 3.9 3.4 4.8 4.3 5.7 5.2 Leverage ratios Total liabilities/equity Net debt/equity Int. coverage ratio 0.3 (0.1) 115.8 0.2 (0.2) 188.7 0.2 (0.4) (38.6) 0.2 (0.4) (29.7) 0.1 (0.6) (23.3) Growth ratios Sales Pretax Earnings Total assets 7.6 136.0 87.2 16.2 5.3 28.4 57.5 (1.1) 6.7 49.0 9.6 14.6 8.3 22.8 22.8 15.7 7.1 16.6 16.6 16.1 Balance Sheet FYE Jun 30 (RMmn) Fixed assets Associates + Subsidiaries Goodwill Others LT assets FY15 843.5 0.0 0.0 0.0 843.6 FY16 753.4 0.0 0.0 0.0 753.4 FY17F 711.2 0.0 0.0 0.0 711.3 Inventories Trade receivables Cash Others Current assets 93.5 297.0 152.0 0.0 542.5 87.7 212.4 317.3 0.0 617.4 104.1 284.0 471.9 0.0 860.0 112.8 307.6 699.9 0.0 1,120.4 120.9 278.9 1,024.3 0.0 1,424.0 1,386.1 1,370.8 1,571.3 1,817.2 2,109.9 222.7 93.6 9.3 325.6 160.6 33.3 2.9 196.8 216.9 0.0 2.9 219.8 232.0 0.0 2.9 234.9 246.0 0.0 2.9 248.9 0.0 32.3 32.3 0.0 3.9 3.9 0.0 3.9 3.9 0.0 3.9 3.9 0.0 3.9 3.9 104.9 754.1 859.1 169.1 104.9 874.7 979.6 190.5 104.9 1,005.3 1,110.3 237.3 104.9 1,178.7 1,283.6 294.8 104.9 1,390.3 1,495.3 361.9 1,386.1 1,370.8 1,571.3 1,817.2 2,109.9 Total assets Trade payables ST borrowings Others Current liabilities LT borrowings Others LT liabilities Share capital Reserves Shareholders' funds MI Total liabilities and equity Cash Flow FYE Jun 30 (RMmn) PBT Depreciation and amortisation Net finance cost Other non-cash Changes in WC Tax paid Net finance cost Others Operational cash flow FY18F 696.8 0.0 0.0 0.0 696.8 FY19F 685.9 0.0 0.0 0.0 685.9 FY15 153.0 204.1 1.3 (8.6) (23.5) (17.6) (1.3) 1.5 308.9 FY16 196.4 209.4 1.1 14.3 32.3 (38.1) (1.1) 4.4 418.7 FY17F 292.7 192.2 (7.4) 0.0 (31.8) (58.5) 7.4 0.0 394.5 FY18F 359.4 184.4 (11.7) 0.0 (17.2) (71.9) 11.7 0.0 454.7 FY19F 419.2 180.9 (17.2) 0.0 34.7 (83.8) 17.2 0.0 551.0 Capex Others Investing cash flow (176.5) 2.6 (173.8) (125.1) 0.6 (124.5) (150.0) 0.0 (150.0) (170.0) 0.0 (170.0) (170.0) 0.0 (170.0) Net share issue Dividend paid Net change in debts Others Financial cash flow 0.0 (56.8) (12.2) 3.6 (65.4) 0.0 (64.7) (59.7) (4.5) (128.9) 0.0 (56.7) (33.3) 0.0 (90.0) 0.0 (56.7) 0.0 0.0 (56.7) 0.0 (56.7) 0.0 0.0 (56.7) Net cash flow Opening cash flow Forex Closing cash flow 69.7 78.1 4.2 152.0 165.3 152.0 0.0 317.3 154.6 317.3 0.0 471.9 228.0 471.9 0.0 699.9 324.3 699.9 0.0 1,024.3 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
31. Thursday , 20 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
32. T e c h n i c a l TA Securities V i e w Thursday , April 20, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Technical Stock Picks Malaysia FBM KLCI: 1,738.95 (-1.65, -0.09%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 19-Apr 1738.95 2.82 4.03 4.93 5.05 5.48 5.14 5.14 9.70 5.65 6.00 4.50 1.21 6.44 9.05 1.18 5.12 9.25 13.72 6.45 3.99 3.20 0.40 0.77 0.44 4.40 1.81 1.53 1.27 1.66 3.01 2.22 1.33 1.03 1.60 1.52 1.96 1.84 1.23 0.89 2.05 Change (1.65) 0.02 0.03 0.00 -0.04 0.00 0.00 -0.06 0.21 0.09 -0.04 0.05 0.01 -0.02 0.01 -0.01 0.00 -0.03 0.00 0.00 -0.11 0.07 0.01 -0.02 -0.01 0.05 -0.01 0.02 -0.02 0.00 -0.09 0.00 -0.01 -0.03 -0.03 -0.02 -0.03 -0.01 -0.01 0.00 -0.01 Tel: +603-2167-9607 High Low 1,741.47 1,735.73 2.82 4.03 4.97 5.06 5.50 5.16 5.19 9.70 5.66 6.01 4.52 1.23 6.45 9.06 1.19 5.16 9.29 13.72 6.46 4.08 3.21 0.41 0.79 0.45 4.43 1.81 1.55 1.29 1.66 3.11 2.22 1.34 1.06 1.67 1.54 1.99 1.85 1.24 0.89 2.07 2.78 3.99 4.91 5.01 5.45 5.11 5.13 9.42 5.53 5.99 4.43 1.20 6.39 9.03 1.17 5.08 9.23 13.62 6.44 3.99 3.10 0.39 0.76 0.44 4.35 1.79 1.50 1.26 1.65 3.00 2.21 1.33 1.03 1.57 1.52 1.96 1.83 1.21 0.89 2.04 Bollinger Bands Lower Mid Upper 1,731.37 1,742.63 1,753.89 2.78 3.93 4.72 4.94 5.37 5.07 5.06 9.18 5.39 5.97 4.38 1.16 6.35 8.91 1.15 5.05 9.20 13.68 6.33 3.96 2.89 0.39 0.72 0.43 4.22 1.68 1.46 1.23 1.65 2.47 2.18 1.20 0.91 1.59 1.47 1.79 1.75 1.19 0.87 1.81 2.85 4.05 4.85 5.06 5.52 5.12 5.19 9.51 5.56 6.01 4.58 1.22 6.42 8.98 1.23 5.20 9.33 13.73 6.40 4.05 3.06 0.40 0.77 0.44 4.30 1.78 1.51 1.28 1.68 2.86 2.23 1.30 1.06 1.69 1.55 1.95 1.81 1.26 0.89 1.99 2.92 4.18 4.98 5.18 5.67 5.18 5.33 9.83 5.73 6.06 4.78 1.28 6.48 9.05 1.32 5.34 9.46 13.77 6.46 4.15 3.22 0.41 0.82 0.46 4.38 1.88 1.56 1.33 1.70 3.25 2.27 1.39 1.20 1.79 1.63 2.12 1.88 1.32 0.91 2.16 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 52.40 1,738.34 1,739.47 1,726.73 DMI DI + DI - ADX 24.10 19.30 23.78 51.18 50.48 57.54 53.05 52.71 59.47 50.41 59.47 58.05 46.15 42.33 45.98 56.38 65.18 43.06 45.29 47.82 51.38 64.36 45.01 67.46 52.01 51.14 45.50 64.34 58.45 55.94 50.91 41.73 65.81 49.33 57.81 49.80 44.12 40.57 50.91 60.29 48.59 51.53 60.23 17.38 18.62 24.64 24.03 22.91 18.30 21.85 29.07 23.03 22.15 18.65 18.79 15.78 24.53 18.08 14.07 15.72 16.06 24.30 21.59 30.15 14.83 23.92 24.72 25.48 26.93 25.96 27.56 14.84 37.55 23.96 32.56 34.54 23.58 23.71 23.21 20.53 16.98 28.43 25.54 2.84 4.01 4.88 5.08 5.45 5.10 5.14 9.39 5.55 6.03 4.50 1.24 6.41 8.99 1.20 5.16 9.30 13.72 6.39 4.05 3.08 0.40 0.79 0.45 4.33 1.81 1.50 1.29 1.67 2.98 2.24 1.34 1.09 1.68 1.59 2.01 1.84 1.24 0.89 2.03 2.86 4.06 4.86 4.99 5.52 5.12 5.15 9.55 5.51 5.99 4.62 1.21 6.41 8.94 1.22 5.21 9.29 13.73 6.38 4.01 2.99 0.40 0.75 0.45 4.27 1.74 1.51 1.28 1.68 2.76 2.21 1.28 1.01 1.64 1.55 1.92 1.79 1.25 0.88 1.94 2.74 4.00 4.79 4.89 5.37 5.10 5.07 9.31 5.39 6.03 4.64 1.22 6.40 8.77 1.19 5.15 9.22 13.66 6.30 4.02 2.87 0.40 0.74 0.45 4.25 1.69 1.51 1.21 1.69 2.13 2.21 1.30 0.96 1.57 1.57 1.92 1.77 1.22 0.89 1.92 21.92 20.81 16.51 18.18 22.40 16.43 17.23 15.03 14.78 18.37 26.75 17.63 14.87 15.72 27.29 25.43 22.35 20.87 15.13 22.92 11.34 12.63 18.37 16.61 19.30 16.11 14.71 20.42 31.11 15.72 18.86 20.58 22.57 21.33 20.32 21.44 11.04 19.06 18.95 20.67 29.04 21.81 17.46 21.62 23.32 15.89 14.77 29.64 26.60 14.64 22.65 25.44 9.41 18.30 28.89 18.69 11.69 15.17 25.05 18.88 31.35 14.95 29.88 25.01 12.84 40.12 25.95 35.36 16.91 48.24 21.20 25.73 39.31 47.08 23.00 21.20 30.82 28.59 23.52 17.79 www.taonline.com.my Diff 4.79 (4.54) (2.19) 8.14 5.85 0.51 1.88 4.62 14.04 8.25 3.77 (8.09) 1.16 0.91 8.81 (9.21) (11.36) (6.62) (4.81) 9.17 (1.33) 18.82 2.20 8.11 6.17 10.82 10.82 11.24 7.14 (16.27) 21.83 5.10 11.98 11.97 2.24 3.39 1.78 9.48 (2.09) 9.48 4.87 Line 2.72 0.01 -0.01 0.03 0.06 0.01 0.01 0.01 0.02 0.06 0.00 -0.06 0.00 0.02 0.07 0.00 -0.02 0.02 0.01 0.03 0.01 0.07 0.00 0.01 0.00 0.03 0.04 0.00 0.02 -0.01 0.24 0.01 0.02 0.03 0.02 0.00 0.03 0.03 0.00 0.00 0.04 MACD Signal Diff 4.92 (2.200) 0.03 0.01 0.03 0.07 0.04 0.01 0.03 0.04 0.06 0.00 -0.04 0.00 0.02 0.08 0.01 0.00 0.04 0.01 0.03 0.01 0.08 0.00 0.02 0.00 0.03 0.04 0.00 0.02 0.00 0.28 0.01 0.01 0.04 0.04 0.00 0.04 0.03 0.01 0.00 0.04 (0.017) (0.014) 0.003 (0.011) (0.022) (0.000) (0.015) (0.015) (0.007) 0.005 (0.017) (0.002) 0.001 (0.010) (0.013) (0.020) (0.020) (0.005) (0.001) (0.002) (0.003) (0.000) (0.003) (0.000) 0.003 (0.004) (0.002) (0.008) (0.002) (0.042) (0.003) 0.005 (0.012) (0.020) (0.003) (0.004) 0.001 (0.009) (0.001) (0.001) DMI MACD Recent Signal BUY SELL DMI MACD Signal Change - SELL SELL BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY SELL SELL SELL SELL BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY SELL SELL BUY BUY - SELL SELL BUY SELL SELL SELL SELL SELL SELL BUY SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL BUY SELL SELL - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
33. Technical Comments : Buy on Weakness BinaPuri & EcoWorld Any further weakness on BinaPuri shares towards the 200-day moving average support at 42sen will be attractive to bargain for rebound upside towards the upper Bollinger band (46sen), with a breakout to aim for the 50%FR (49sen) ahead. Better support is from the 23.6%FR (40sen). EcoWorld shares should also attract buyers on dips towards the 100-day ma support (RM1.44), while immediate upside hurdles are from the 50%FR (RM1.64) and 61.8%FR (RM1.74), and stronger retracement support is at the 23.6%FR (RM1.39). BINAPURI RM0.44 (-0.005) Upper Middle BOLLINGER BANDS RM RM 0.46 0.44 10-day 30-day Lower RM 0.43 50-day BUY Recent Signal SELL Signal Change SELL DMI Recent Signal ECOWORLD Recent Signal Signal Change BOLLINGER BANDS RM RM RM DMI RM 0.45 DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 0.45 RM 0.45 RM1.53 (+0.02) 1.56 1.51 1.46 BUY SIMPLE MOVING AVERAGES RM 1.50 RM 1.51 RM 1.51 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4
34. T e c h n i c a l TA Securities V i e w Thursday , April 20, 2017 FBMKLCI: 1,738.95 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Stock Screen s Malaysia End Day Census of 19.04.2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas .The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/SELL) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name Price INIX TECHNOLOGIE JAG BHD TIGER SYNERGY BH PANPAGES BHD DAGANG NEXCHANGE PERAK TRANSIT BH AIRASIA X BHD BIO OSMO BHD IRIS CORP BHD MNC WIRELESS BHD LUSTER INDUSTRIE ECO WORLD DEVELO GREEN PACKET BHD NICHE CAPITAL BIOALPHA HOLDING STERLING PROGRES M3 TECHNOLOGIES NETX HOLDINGS BH METRONIC GLOBAL ASIA POLY HOLDIN SUPERCOMNET TECH KEY ASIC BHD ADV SYNERGY BHD VIZIONE HOLDINGS AE MULTI HOLDING AT SYSTEMATIZATI DIGI.COM BHD BCM ALLIANCE B SMTRACK BHD MALAYSIAN BULK 0.09 0.13 0.06 0.34 0.46 0.26 0.40 0.10 0.16 0.08 0.12 1.53 0.34 0.11 0.26 0.21 0.08 0.04 0.08 0.21 0.18 0.15 0.18 0.13 0.19 0.05 5.14 0.22 0.07 0.86 RSI Bollinger Band Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.08 0.10 0.04 0.28 0.37 0.22 0.39 0.08 0.13 0.06 0.11 1.46 0.32 0.08 0.24 0.19 0.06 0.02 0.07 0.18 0.13 0.12 0.14 0.11 0.17 0.04 5.07 0.16 0.04 0.76 0.09 0.11 0.05 0.32 0.43 0.25 0.40 0.09 0.16 0.08 0.12 1.51 0.34 0.11 0.26 0.20 0.08 0.03 0.07 0.20 0.17 0.13 0.17 0.13 0.18 0.05 5.12 0.20 0.07 0.86 0.10 0.13 0.06 0.36 0.50 0.27 0.41 0.10 0.19 0.09 0.13 1.56 0.35 0.13 0.28 0.21 0.09 0.05 0.08 0.22 0.21 0.15 0.20 0.14 0.20 0.05 5.18 0.25 0.09 0.96 54.87 64.39 60.61 58.55 58.13 66.34 52.01 61.84 52.63 56.95 56.30 55.94 58.11 53.14 52.79 51.61 55.01 53.00 53.63 58.62 55.01 66.04 56.69 53.19 56.30 53.67 59.47 57.83 55.76 55.21 0.09 0.12 0.06 0.33 0.47 0.24 0.40 0.10 0.17 0.08 0.12 1.50 0.34 0.12 0.27 0.21 0.08 0.04 0.07 0.21 0.19 0.14 0.19 0.13 0.19 0.05 5.10 0.22 0.08 0.89 0.08 0.11 0.05 0.31 0.42 0.24 0.40 0.09 0.15 0.07 0.12 1.51 0.33 0.10 0.26 0.21 0.07 0.03 0.07 0.19 0.16 0.13 0.17 0.12 0.17 0.05 5.12 0.19 0.06 0.82 0.08 0.12 0.05 0.30 0.40 0.21 0.40 0.08 0.14 0.07 0.11 1.51 0.30 0.10 0.25 0.21 0.07 0.03 0.08 0.18 0.15 0.11 0.15 0.12 0.16 0.04 5.10 0.19 0.05 0.79 Vol 61,691,500 59,709,900 54,744,900 41,262,100 24,059,900 22,445,200 14,931,900 14,838,400 13,430,800 11,716,000 7,521,000 7,284,400 6,505,700 6,101,100 5,945,500 5,185,900 4,924,100 4,622,200 4,173,800 3,670,700 3,606,300 3,188,300 3,178,500 3,051,500 2,871,000 2,790,300 2,632,700 2,600,700 2,515,900 2,476,400 20-day avg vol 9,667,045 8,659,925 20,005,750 4,422,075 46,877,020 9,877,610 11,605,030 13,124,460 29,872,560 17,230,360 25,905,400 6,477,340 15,258,150 8,469,405 14,107,790 11,022,550 9,834,290 22,057,090 10,477,150 8,193,835 8,977,995 3,275,915 10,392,510 22,114,840 7,521,015 19,330,940 5,339,770 10,925,060 12,094,040 5,526,165 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The mediumterm trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2
35. TA Securities A Member of the TA Group *Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy breakout trades. [UPPER BOLLINGER BREAKOUT] Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/SELL guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Stock Name HIL INDUSTRIES B EP MANUFACTURING YEN GLOBAL BHD MLABS SYSTEMS LTKM BHD JAG BHD K-STAR SPORTS LT SAND NISKO CAPIT SEACERA GROUP CAHYA MATA SARAW INDUSTRONICS BHD MALAYSIA MARINE EA HOLDINGS YTL HOSPITALITY PADINI HLDGS TEX CYCLE TECH SMRT HOLDINGS BH WILLOWGLEN MSC B MMC CORP BHD SCIENTEX BHD Raw data sourced from Bloomberg 20 Price 1.04 0.78 1.16 0.15 1.53 0.13 0.10 0.39 1.15 4.40 0.32 1.04 0.12 1.20 3.16 1.19 0.22 1.54 2.59 8.38 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.87 0.46 0.99 0.08 1.18 0.10 0.06 0.24 0.86 4.22 0.22 0.93 0.06 1.16 2.87 1.06 0.16 0.68 2.45 6.95 0.93 0.56 1.07 0.11 1.31 0.11 0.07 0.30 0.96 4.30 0.26 0.98 0.09 1.18 2.98 1.12 0.19 1.11 2.51 7.60 0.99 0.67 1.15 0.13 1.43 0.13 0.09 0.36 1.07 4.38 0.31 1.03 0.11 1.19 3.09 1.17 0.22 1.54 2.57 8.25 71.23 81.97 61.46 68.68 82.57 64.39 76.50 74.58 80.57 64.34 80.50 65.85 81.87 62.58 68.66 68.99 71.96 85.60 67.85 85.19 0.94 0.59 1.05 0.11 1.32 0.12 0.08 0.32 0.98 4.33 0.28 1.00 0.10 1.18 3.01 1.13 0.20 1.29 2.52 7.85 0.93 0.55 1.07 0.10 1.31 0.11 0.07 0.29 0.96 4.27 0.24 0.97 0.08 1.18 2.96 1.11 0.18 1.03 2.51 7.51 0.94 0.54 1.08 0.09 1.31 0.12 0.07 0.27 0.96 4.25 0.21 0.97 0.07 1.19 2.86 1.12 0.18 0.95 2.50 7.39 Vol 1,594,800 1,013,600 558,500 10,151,800 705,800 59,709,900 7,856,700 1,338,700 13,467,200 2,308,500 2,483,700 1,584,900 86,586,500 1,377,600 1,341,700 196,000 2,698,300 3,703,600 2,588,600 358,300 20-day avg vol 118,465 76,745 55,960 1,093,070 78,840 8,659,925 1,584,505 360,390 3,672,740 702,570 940,490 707,845 40,307,740 668,305 814,885 135,180 1,941,860 2,809,455 2,029,650 337,755 *Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. p [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stock Name PETRONAS GAS BHD PHARMANIAGA BHD LAFARGE MALAYSIA MCT BHD COUNTRY HEIGHTS CYCLE & CARR BIN UMS HLDGS BHD DATAPREP HLDGS CIMB FTSE CHINA MULTI-USAGE HLDG SARAWAK PLANT VERSATILE CREATI EA TECHNIQUE M B REACH ENERGY BHD COMPLETE LOGIST HARBOUR-LINK GRO ANZO HOLDINGS BH BINTULU PORT HLD PCCS GROUP BHD DOLOMITE CORP BH Price 18.70 4.64 6.46 1.06 1.22 2.76 2.52 0.45 1.43 0.78 1.61 1.24 0.60 0.53 0.89 0.77 0.36 6.06 0.42 0.34 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 19.10 4.72 6.51 1.10 1.25 2.79 2.55 0.46 1.44 0.80 1.63 1.26 0.61 0.54 0.90 0.77 0.37 6.07 0.43 0.35 19.63 4.85 6.69 1.16 1.34 2.84 2.71 0.56 1.49 0.90 1.68 1.31 0.66 0.59 1.02 0.80 0.50 6.13 0.47 0.36 20.16 4.99 6.87 1.21 1.43 2.89 2.86 0.65 1.53 1.00 1.74 1.37 0.71 0.63 1.15 0.82 0.62 6.19 0.52 0.38 16.76 27.63 38.90 40.09 34.40 28.19 33.84 43.33 34.60 38.47 29.76 36.30 26.09 18.20 30.12 30.06 41.58 37.07 36.69 37.13 19.48 4.81 6.64 1.14 1.35 2.83 2.65 0.53 1.49 0.89 1.66 1.31 0.64 0.57 0.98 0.79 0.49 6.12 0.45 0.36 19.68 4.86 6.70 1.12 1.34 2.85 2.72 0.49 1.48 0.94 1.69 1.32 0.66 0.59 1.05 0.81 0.44 6.12 0.48 0.37 19.94 4.93 6.69 1.05 1.36 2.90 2.70 0.39 1.45 0.89 1.72 1.34 0.67 0.61 1.04 0.82 0.37 6.18 0.43 0.37 Vol 766,800 87,100 1,325,600 13,400 12,600 194,400 6,000 9,097,400 46,000 2,000 5,100 535,600 397,300 5,718,600 477,200 292,800 50,816,700 1,370,700 1,000 140,700 20-day avg vol 976,260 67,450 566,165 22,955 151,885 33,995 2,450 24,492,480 9,490 7,210 42,620 1,201,450 819,680 2,863,075 733,830 428,415 33,602,490 164,005 33,785 187,000 Raw data sourced from Bloomberg Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
36. Thursday , 20 April, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED FOREIGN TECHNICAL REPORTS’ Asian Technical Reports 1. Foreign Technical Stock Watch (AUS) 2. Foreign Technical Stock Watch (HK) 3. Foreign Technical Stock Watch (FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
37. TA Securities T e c h n i c a l V i e w Thursday , April 20, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Foreign Technical Stock Watch Australia ASX: 5,804.01 (-32.73, -0.56%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name ASX 200 BHP BILLITON RIO TINTO COMMONW BK AUSTR WESTPAC BANKING AUST AND NZ BANK NATL AUST BANK WESFARMERS WOODSIDE PETRO NEWCREST MINING WESTFIELD GROUP FORTESCUE METALS QBE INSURANCE ORIGIN ENERGY AMP SANTOS MACQUARIE GROUP SUNCORP GROUP ORICA OIL SEARCH COCA-COLA AMATIL AMCOR STOCKLAND ALUMINA COMPUTERSHARE QANTAS AIRWAYS SIMS METAL MGMT Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD Change High Low 19-Apr Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change 5804.01 -32.73 5836.70 5790.60 5698.75 5837.71 5976.67 46.34 5875.83 5814.90 5787.23 25.69 28.83 23.27 (3.14) 27.34 33.98 (6.641) SELL SELL SELL 23.92 -0.01 24.05 23.33 23.22 24.35 25.49 42.51 24.66 24.40 25.00 24.98 33.65 14.42 (8.67) -0.10 -0.12 0.012 SELL BUY 58.90 0.90 59.11 57.63 58.23 60.25 62.28 42.31 60.31 60.47 62.51 23.64 35.99 16.47 (12.35) -0.65 -0.57 (0.072) SELL SELL 84.62 -0.89 85.25 84.50 82.75 85.16 87.57 47.28 85.61 84.85 84.30 21.88 24.78 14.61 (2.90) 0.42 0.52 (0.094) SELL SELL SELL SELL 34.11 -0.38 34.15 33.81 33.46 34.51 35.55 44.98 34.56 34.59 34.15 21.94 31.01 14.40 (9.07) 0.09 0.17 (0.077) SELL SELL 31.16 -0.50 31.50 31.16 30.81 31.64 32.47 44.09 31.66 31.66 31.15 20.19 27.83 15.90 (7.65) 0.10 0.18 (0.075) SELL SELL 32.46 -0.39 32.79 32.43 31.69 32.74 33.79 47.05 32.84 32.70 32.27 22.61 24.14 16.40 (1.53) 0.16 0.23 (0.065) SELL SELL SELL 44.36 -0.14 44.78 44.23 43.36 44.48 45.61 51.22 44.62 44.30 43.55 20.06 22.77 16.37 (2.71) 0.31 0.40 (0.083) SELL SELL 32.71 -0.30 33.00 32.51 30.42 32.27 34.11 55.51 33.03 31.88 31.72 30.65 24.41 26.60 6.24 0.49 0.44 0.056 BUY BUY 23.85 -0.13 23.93 23.27 21.47 23.37 25.26 57.00 24.21 22.78 22.74 31.00 24.89 27.32 6.11 0.61 0.53 0.076 BUY BUY 9.08 -0.13 9.19 9.04 8.47 8.90 9.33 58.01 9.06 8.79 8.85 31.07 15.43 32.98 15.64 0.11 0.07 0.033 BUY BUY 5.24 0.15 5.31 5.00 5.33 6.06 6.79 29.17 5.88 6.19 6.40 10.15 45.87 33.30 (35.72) -0.26 -0.16 (0.105) SELL SELL 12.37 -0.25 12.56 12.22 12.46 12.79 13.12 38.68 12.79 12.81 12.70 20.06 33.37 15.70 (13.31) -0.02 0.04 (0.056) SELL SELL 7.38 -0.02 7.45 7.32 6.52 7.10 7.69 65.10 7.33 6.90 6.88 34.09 18.24 31.16 15.85 0.19 0.16 0.032 BUY BUY 5.20 -0.04 5.25 5.19 4.92 5.14 5.36 55.93 5.23 5.10 5.08 23.64 13.76 24.23 9.88 0.06 0.05 0.005 BUY BUY 3.66 -0.02 3.66 3.60 3.61 3.76 3.92 42.10 3.78 3.72 3.78 21.09 30.35 15.17 (9.26) 0.00 0.00 (0.007) SELL SELL - SELL 86.64 -0.51 87.07 86.15 86.21 88.33 90.44 41.27 88.20 88.35 87.55 17.49 27.81 12.18 (10.32) -0.02 0.28 (0.291) SELL SELL 13.30 -0.10 13.38 13.14 12.77 13.15 13.54 52.47 13.21 13.22 13.27 23.59 25.02 13.25 (1.43) 0.03 -0.01 0.044 SELL BUY SELL 17.62 -0.31 18.05 17.53 17.30 17.71 18.13 45.09 17.75 17.83 18.16 20.77 21.14 14.84 (0.38) -0.08 -0.12 0.044 SELL BUY 7.21 -0.14 7.30 7.08 6.83 7.25 7.66 48.68 7.40 7.13 7.10 22.43 28.43 23.88 (6.00) 0.10 0.11 (0.000) SELL SELL SELL SELL 10.72 -0.06 10.79 10.69 10.38 10.65 10.92 57.11 10.74 10.57 10.40 21.72 16.54 23.09 5.18 0.11 0.11 (0.008) BUY SELL 15.20 -0.13 15.40 15.18 14.61 15.09 15.57 59.52 15.23 14.84 14.71 24.13 18.57 22.71 5.56 0.19 0.19 (0.000) BUY SELL - SELL 4.84 -0.11 4.94 4.81 4.44 4.71 4.97 61.97 4.80 4.66 4.63 31.45 16.23 32.55 15.21 0.08 0.06 0.022 BUY BUY 1.80 0.07 1.80 1.73 1.73 1.78 1.84 48.91 1.79 1.81 1.86 24.84 27.20 10.68 (2.36) -0.02 -0.02 0.001 SELL BUY - BUY 13.59 -0.28 13.84 13.57 13.52 13.90 14.28 41.65 13.94 13.92 13.73 15.62 25.07 19.28 (9.45) 0.03 0.09 (0.058) SELL SELL 3.94 0.03 3.96 3.91 3.83 3.92 4.01 58.35 3.93 3.87 3.75 19.54 17.86 19.24 1.67 0.05 0.06 (0.014) BUY SELL 11.56 -0.02 11.69 11.51 11.64 12.33 13.02 33.62 12.18 12.42 12.41 17.43 34.85 15.48 (17.42) -0.18 -0.07 (0.107) SELL SELL - The table below consists of the top 30 ASX 200 Index component stocks, weighted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
38. TA Securities A Member of the TA Group INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name BHP AU BHP BILLITON LTD RIO AU RIO TINTO LTD CBA AU COMMONW BK AUSTR WBC AU WESTPAC BANKING ANZ AU AUST AND NZ BANK NAB AU NATL AUST BANK WES AU WESFARMERS LTD WPL AU WOODSIDE PETRO NCM AU NEWCREST MINING WFD AU WESTFIELD GROUP FMG AU FORTESCUE METALS QBE AU QBE INSURANCE ORG AU ORIGIN ENERGY AMP AU AMP LTD STO AU SANTOS LTD MQG AU MACQUARIE GROUP SUN AU SUNCORP GROUP LT ORI AU ORICA LTD OSH AU OIL SEARCH LTD CCL AU COCA-COLA AMATIL AMC AU AMCOR LTD SGP AU STOCKLAND AWC AU ALUMINA LTD CPU AU COMPUTERSHARE LT QAN AU QANTAS AIRWAYS SGM AU SIMS METAL MGMT EPS ($) PER(x) Div Yield(%) 52week Price % Chg Close Target Price % upside 23.92 27.82 14% 58.90 71.14 17% 4.70 84.62 84.67 0% 5.64 34.11 34.44 1% 2.41 31.16 31.68 2% 32.46 32.81 44.36 43.46 32.71 32.87 0% 1.26 1.45 19.4 17.0 3.085 3.504 33.97 25.10 4.97 23.85 22.91 -4% 0.72 0.91 25.0 19.7 0.709 1.031 27.20 16.35 17.78 9.08 9.48 4% 0.33 0.36 20.7 19.0 2.819 2.874 11.14 8.21 -3.20 5.24 6.40 18% 0.81 0.50 4.8 7.9 5.897 3.760 7.27 2.81 -11.04 12.37 13.64 9% 0.64 0.81 14.5 11.5 3.428 4.050 13.28 9.22 -0.40 7.38 7.44 1% 0.30 0.56 24.4 13.2 0.000 1.328 7.57 4.69 11.99 5.20 5.31 2% 0.36 0.37 14.6 13.9 5.577 5.827 5.96 4.39 3.17 3.66 4.40 17% 0.14 0.18 20.1 15.2 1.011 2.104 5.07 3.30 -8.96 86.64 88.37 2% 6.16 6.36 14.1 13.6 4.904 5.119 90.93 61.05 -0.55 13.30 13.77 3% 0.90 0.97 14.7 13.7 5.466 5.902 13.95 11.27 -1.63 17.62 16.75 -5% 1.05 1.13 16.9 15.6 3.014 3.269 19.49 12.04 -0.34 2017 2018 2017 2018 2017 2018 High Low YTD 1.50 1.33 11.9 13.5 3.612 3.328 27.96 17.29 -4.55 3.39 9.4 13.0 4.688 3.435 69.80 41.51 -1.67 5.84 15.0 14.5 5.012 5.157 86.68 69.22 2.68 2.51 14.1 13.6 5.465 5.456 35.39 27.57 4.63 2.39 2.43 13.0 12.8 5.186 5.254 32.44 22.66 2.43 1% 2.41 2.47 13.4 13.2 6.038 5.930 33.63 23.90 5.84 -2% 2.61 2.63 17.0 16.9 4.977 5.054 46.06 38.62 5.27 7.21 7.98 10% 0.21 0.25 25.7 21.8 1.221 1.456 7.75 6.19 0.56 10.72 9.92 -8% 0.57 0.60 18.7 18.0 4.468 4.599 10.87 7.94 5.93 15.20 15.97 5% 0.61 0.65 18.8 17.6 2.809 3.145 16.66 13.62 1.67 4.84 4.83 0% 0.32 0.34 15.1 14.4 5.310 5.517 5.11 4.03 5.68 -1.91 1.80 1.86 4% 0.11 0.10 12.0 13.9 5.961 5.794 2.04 1.21 13.59 13.82 2% 0.55 0.61 18.7 16.8 1.928 2.060 14.33 8.63 9.07 3.94 4.39 10% 0.53 0.53 7.48 7.45 3.731 4.569 4.02 2.58 18.32 11.56 12.42 7% 0.64 0.73 18.2 15.9 3.313 3.408 13.62 7.40 -9.90 Note : The above data is based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
39. T e c h n i c a l TA Securities V i e w Thursday , April 20, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Foreign Technical Stock Watch Hong Kong HSI: 23,825.88 (-98.66, -0.41%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Close Name 19-Apr HANG SENG 23,825.88 HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA GALAXY 62.10 83.20 6.10 4.91 9.13 22.50 3.63 116.20 5.56 230.20 190.80 93.70 41.90 6.20 17.84 79.35 3.24 31.00 153.40 15.24 74.25 19.76 65.65 23.00 67.90 5.27 49.10 5.78 3.93 10.12 30.75 5.98 44.00 12.92 18.96 9.61 22.10 21.85 13.80 4.15 10.86 10.72 8.33 2.65 2.37 48.70 35.60 42.35 Change High Tel: +603-2167 9607 Lower (98.66) (0.30) (0.35) (0.04) (0.02) (0.11) (0.05) (0.02) (2.00) (0.07) 2.20 (0.90) (0.40) (0.10) (0.09) (0.10) (0.90) (0.02) (0.25) (1.80) (0.14) (0.65) (0.44) 0.00 (0.10) (0.10) 0.00 (0.40) (0.05) (0.06) (0.08) (0.20) (0.01) (0.35) (0.16) (0.04) (0.16) (0.10) (0.60) (0.10) 0.11 (0.04) (0.08) (0.01) (0.01) (0.01) (0.50) (0.90) (1.05) 23,893.14 23,723.87 62.30 83.85 6.15 4.96 9.22 22.65 3.66 117.70 5.62 231.40 191.80 94.90 42.05 6.28 18.02 80.10 3.27 31.05 156.00 15.50 75.15 20.20 65.90 23.05 68.20 5.27 49.15 5.86 4.08 10.26 30.95 6.03 44.15 13.10 19.42 9.75 22.25 22.10 13.92 4.15 11.18 10.86 8.42 2.68 2.37 49.20 36.25 43.35 61.85 83.00 6.08 4.88 9.02 22.30 3.61 114.70 5.50 228.00 189.50 93.60 41.55 6.15 17.72 79.00 3.18 30.40 153.30 15.22 73.35 19.62 65.10 22.70 67.70 5.27 48.40 5.72 3.90 10.02 30.60 5.95 43.65 12.76 18.86 9.54 22.00 21.60 13.76 3.95 10.80 10.66 8.27 2.62 2.37 48.20 35.35 42.10 RSI Bollinger Bands Low 23,921.91 62.35 82.23 6.11 4.91 8.93 22.38 3.60 112.89 5.58 222.26 191.26 93.86 41.80 6.02 17.75 79.50 3.06 31.18 154.76 15.08 74.62 19.94 65.30 21.66 66.31 4.96 47.14 5.80 3.89 9.96 31.06 5.88 42.49 13.07 17.35 9.51 21.08 21.61 13.66 3.66 10.83 10.74 8.23 2.53 2.32 48.85 34.51 40.73 Mid stsoo@ta.com.my Upper 14d 24,266.27 24,610.62 41.85 63.25 86.24 6.31 5.08 9.28 23.77 3.82 115.91 5.73 226.88 195.55 95.99 43.15 6.30 18.37 81.24 3.49 31.89 157.71 15.55 77.28 20.50 67.28 23.15 67.78 5.13 48.73 6.02 4.06 10.46 31.96 6.44 43.72 13.62 18.35 9.74 22.02 22.32 14.29 3.91 11.15 11.08 8.54 2.91 2.38 49.62 36.23 42.55 64.15 90.25 6.51 5.26 9.62 25.17 4.04 118.93 5.89 231.50 199.83 98.13 44.50 6.58 19.00 82.98 3.92 32.60 160.66 16.02 79.94 21.06 69.25 24.63 69.25 5.30 50.31 6.23 4.24 10.95 32.85 7.01 44.95 14.17 19.35 9.97 22.96 23.04 14.91 4.17 11.47 11.43 8.85 3.30 2.44 50.38 37.96 44.37 36.63 36.64 39.79 38.06 42.44 30.38 30.50 53.81 33.75 61.89 37.73 33.76 39.18 46.59 51.24 41.97 30.32 38.82 34.94 42.59 31.36 41.90 46.98 45.27 47.75 57.23 62.65 32.20 42.82 46.84 32.40 29.80 59.78 34.96 61.01 44.38 53.11 44.82 40.14 59.32 37.39 34.56 44.18 32.01 46.90 42.68 48.18 55.78 Moving Averages 10d 24,187.95 63.24 84.99 6.23 5.02 9.38 23.28 3.72 117.21 5.68 228.04 194.66 95.14 42.60 6.39 18.19 81.60 3.31 31.73 157.08 15.71 76.79 20.40 66.54 22.93 68.28 5.13 49.37 5.93 4.08 10.57 31.74 6.21 44.21 13.43 18.70 9.74 22.17 22.48 14.19 4.01 11.09 10.99 8.48 2.75 2.39 49.51 36.87 43.24 30d www.taonline.com.my DMI 50d DI + DMI MACD DI - ADX Diff Line Signal Diff MACD Recent Signal DMI MACD Signal Change 24,116.79 23,988.69 18.01 32.89 20.22 (14.88) 29.36 99.57 (70.213) SELL SELL - - 63.35 85.80 6.29 5.07 9.18 23.84 3.84 114.96 5.75 222.68 194.65 96.06 42.75 6.17 17.60 80.36 3.55 31.72 157.94 15.37 77.94 20.32 66.77 23.57 67.84 5.19 47.65 6.03 4.03 10.19 31.94 6.61 43.11 13.51 18.12 9.80 21.83 22.05 14.29 3.95 11.29 11.09 8.51 3.01 2.39 49.51 35.51 41.30 64.28 86.33 6.25 5.04 9.28 23.90 3.84 113.32 5.87 216.90 195.29 94.99 42.37 6.14 17.06 79.45 3.51 31.52 159.42 15.19 78.79 20.05 64.06 23.69 68.76 5.21 46.33 6.06 4.07 9.88 32.41 6.55 42.16 13.32 17.86 9.72 21.52 21.88 14.19 4.02 11.24 11.24 8.49 2.98 2.37 49.06 34.25 39.36 32.31 29.42 25.06 30.28 27.59 28.31 35.68 23.16 30.84 15.34 26.10 24.34 18.76 23.66 23.40 30.36 33.71 30.75 27.87 28.74 32.13 24.30 19.22 22.66 16.19 18.62 20.80 31.69 22.97 20.67 31.32 29.01 18.82 27.10 9.59 21.92 16.50 19.75 22.15 18.27 21.92 31.38 18.22 28.29 17.36 27.05 22.37 14.75 9.73 19.70 16.09 19.17 20.54 20.86 25.43 25.09 17.53 25.83 15.63 25.65 24.21 26.88 25.72 34.93 29.39 23.40 24.97 36.85 19.19 16.94 26.07 18.54 16.21 18.45 36.53 18.70 13.15 33.66 21.16 27.42 47.67 25.31 33.58 16.54 20.69 22.00 16.28 14.16 14.55 27.65 12.84 28.41 27.62 16.30 32.72 47.85 (11.17) (14.65) (9.28) (13.81) (8.55) (15.03) (18.88) (1.22) (14.64) 11.91 (13.81) (14.12) (3.40) (2.52) 2.65 (14.64) (21.56) (20.41) (19.76) (13.73) (19.20) (4.77) (0.27) (2.13) (1.05) 3.49 5.11 (19.46) (1.27) (1.45) (20.28) (17.36) 6.25 (15.11) 22.40 0.28 9.23 (0.72) (2.81) 9.44 3.39 (22.16) (1.03) (13.87) 10.79 (10.76) (2.37) 8.16 -0.28 -0.66 -0.02 -0.03 0.03 -0.29 -0.05 1.34 -0.06 3.66 -0.49 -0.27 -0.06 0.07 0.29 0.50 -0.09 -0.03 -0.89 0.13 -0.98 0.08 0.43 -0.20 0.02 0.01 0.98 -0.06 0.00 0.16 -0.28 -0.18 0.68 -0.05 0.38 0.00 0.27 0.19 -0.02 0.02 -0.09 -0.10 -0.02 -0.10 0.00 0.06 0.66 1.10 -0.23 -0.33 0.01 0.00 0.03 -0.11 -0.03 1.33 -0.06 3.93 0.11 0.09 0.18 0.09 0.41 0.82 -0.06 0.12 -0.45 0.19 -0.62 0.18 0.86 -0.24 -0.08 -0.02 1.04 -0.03 0.01 0.24 -0.15 -0.12 0.72 0.06 0.31 0.01 0.27 0.26 0.02 0.00 -0.04 -0.07 0.01 -0.06 0.00 0.17 0.79 1.30 (0.051) (0.328) (0.030) (0.026) (0.006) (0.182) (0.025) 0.007 (0.006) (0.273) (0.598) (0.359) (0.235) (0.020) (0.127) (0.328) (0.030) (0.148) (0.435) (0.058) (0.361) (0.097) (0.431) 0.045 0.098 0.021 (0.063) (0.026) (0.007) (0.083) (0.134) (0.062) (0.041) (0.105) 0.065 (0.007) 0.003 (0.063) (0.043) 0.024 (0.048) (0.028) (0.036) (0.037) (0.001) (0.118) (0.134) (0.199) SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY BUY SELL SELL SELL SELL SELL BUY SELL BUY BUY BUY SELL SELL BUY BUY SELL SELL SELL BUY SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY BUY BUY SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL BUY SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL - SELL SELL SELL SELL SELL SELL SELL - 21.14 14.77 15.77 16.47 19.04 13.29 16.80 21.94 16.20 27.25 12.29 10.22 15.36 21.14 26.05 15.71 12.15 10.33 8.11 15.01 12.93 19.53 18.95 20.53 15.14 22.11 25.90 12.22 21.71 19.23 11.04 11.65 25.07 11.99 31.99 22.20 25.72 19.02 19.35 27.71 25.31 9.22 17.19 14.43 28.15 16.30 20.00 22.91 The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 3
40. TA Securities A Member of the TA Group Corporate News : Ping An Insurance Group emphasis on internet finance is unique among traditional financial service providers. Its online platforms such as peer-to-peer lending, health care and mobile payments are effective in attracting new customers, and boosting crossselling opportunities for its insurance, banking and investment products. – Bloomberg. Technical Comments: Any corrections on Ping An Insurance shares towards the 23.6%FR (HKD38.14) would be attractive to buy for oversold rebound towards the mid Bollinger band (HKD43.15), with upper Bollinger band (HKD44.50) and 50%FR (HKD46.70) acting as stronger upside hurdles, going forward. PING AN INSURANCE HKD41.90 (-0.10) \\ Upper Middle Lower Recent Signal Signal Change BOLLINGER BANDS HKD HKD HKD DMI 44.50 43.15 41.80 SELL SIMPLE MOVING AVERAGES HKD 42.60 HKD 42.75 HKD 42.37 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 3
41. TA Securities A Member of the TA Group INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker 5 941 939 1398 883 2628 3988 16 857 700 388 1 2318 386 1088 2 494 2388 11 3 19 101 4 688 6 1880 12 3328 1898 762 23 330 66 83 291 17 1109 144 836 2600 293 267 1199 2038 678 1299 1928 27 HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price % upside 2017 2018 2017 2018 2017 2018 High Low YTD HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA LTD GALAXY 62.10 62.83 1% 0.6 0.6 13.6 12.3 0.8 0.8 69.10 44.50 -0.24 83.20 106.47 22% 5.7 6.1 13.0 12.1 3.2 3.4 99.30 80.30 1.22 6.10 7.56 19% 0.9 1.0 5.7 5.5 4.7 4.9 6.55 4.50 2.18 4.91 6.01 18% 0.8 0.8 5.5 5.3 4.8 5.0 5.27 3.82 9.13 11.10 18% 0.6 0.8 13.8 10.4 3.6 3.8 10.88 8.70 -5.88 22.50 28.46 21% 0.9 1.1 21.7 18.0 1.4 1.6 25.50 16.00 11.39 3.63 4.47 19% 0.6 0.6 5.6 5.2 4.8 5.2 4.08 2.90 5.52 116.20 129.72 10% 8.8 9.5 13.2 12.2 3.4 3.6 123.30 85.40 18.57 0.3 0.4 19.2 12.5 2.0 3.0 6.38 5.59 5.56 7.00 21% 4.92 -3.81 230.20 259.08 11% 6.2 7.9 33.1 25.8 0.3 0.4 233.80 152.20 21.35 190.80 197.45 3% 5.7 6.3 33.6 30.3 2.7 2.9 213.20 175.00 4.15 93.70 114.40 18% 9.3 10.1 10.1 9.3 3.1 3.3 103.90 80.60 6.60 41.90 44.95 56.85 26% 3.7 4.1 10.1 9.1 1.7 1.8 32.50 7.99 6.20 7.37 16% 0.4 0.5 12.4 10.9 4.0 4.5 6.57 4.96 12.73 17.84 19.10 7% 1.6 1.5 10.1 10.5 3.3 3.3 19.78 11.40 22.19 79.35 79.60 0% 5.0 5.2 15.7 15.3 3.6 3.7 84.35 69.65 11.37 3.24 3.16 -2% 0.0 0.0 14.9 13.4 0.8 0.8 5.15 3.18 -4.99 11.71 31.00 35.87 14% 2.7 2.9 11.6 10.7 4.4 4.6 32.55 21.01 153.40 154.53 1% 9.2 10.1 16.6 15.2 4.1 4.4 164.40 127.60 6.31 15.24 12.92 -18% 0.6 0.6 25.6 24.5 2.5 2.6 15.92 12.95 10.92 74.25 77.17 4% 5.0 5.2 15.0 14.2 3.7 3.9 94.40 72.20 0.27 19.76 19.66 -1% 1.2 1.1 16.4 18.2 3.8 3.8 21.00 13.64 20.19 65.65 66.22 1% 4.7 4.8 14.0 13.6 3.3 3.5 69.95 40.05 27.35 23.00 28.95 21% 3.2 3.6 7.2 6.4 3.6 4.1 27.85 20.15 11.92 67.90 74.22 9% 3.4 3.5 19.8 19.2 4.1 4.1 75.73 62.78 6.26 5.27 4.92 -7% 0.4 0.4 11.7 11.6 4.6 4.7 5.79 4.07 20.87 49.10 48.99 0% 3.3 3.2 15.2 3.1 3.2 50.20 39.64 19.03 5.78 6.10 5% 0.9 0.9 5.7 5.5 4.7 5.0 6.44 4.46 3.03 3.93 4.68 16% 0.3 0.3 11.3 12.0 2.2 1.9 4.88 2.92 6.79 10.12 12.18 17% 0.2 0.4 39.0 21.7 0.8 1.5 11.20 7.70 12.07 30.75 25.91 34.75 26.35 14.9 -19% 2.2 1.8 14.0 17.4 3.1 2.6 5.98 5.89 -2% 0.0 0.2 206.2 37.1 0.0 1.2 7.62 5.34 -1.81 44.00 39.91 -10% 1.6 1.6 27.8 26.9 7.5 2.6 44.80 35.55 16.71 3.54 12.92 13.86 7% 0.8 0.8 15.4 15.6 4.0 4.0 14.48 10.96 11.19 18.96 19.03 0% 0.6 0.7 29.8 25.6 1.1 1.2 19.60 13.75 23.12 9.61 11.22 14% 0.8 0.8 12.4 11.7 4.6 4.6 10.46 6.91 17.20 22.10 28.28 22% 2.8 3.2 8.0 6.9 3.6 4.2 23.85 16.50 26.72 21.85 24.61 11% 1.6 1.7 13.5 13.1 3.4 3.6 24.10 18.80 13.57 13.80 15.03 8% 1.4 1.5 10.1 9.2 6.0 6.2 15.10 10.70 12.01 2.25 29.69 4.15 4.71 12% 0.2 0.2 17.8 15.6 10.86 10.06 -8% -0.1 0.2 N/A 44.1 0.5 0.8 13.50 10.00 6.47 10.72 12.35 13% 1.6 1.7 6.9 6.4 3.1 4.0 12.78 10.54 -3.42 8.33 9.11 9% 0.1 0.1 13.6 12.5 0.4 0.4 9.48 7.28 6.93 3.07 42.6 13.6 0.5 0.5 2.65 0.3 0.5 4.45 14% 0.0 0.0 2.37 2.45 3% 0.0 0.0 N/A N/A 0.0 0.0 2.80 2.00 4.87 48.70 56.81 14% 0.4 0.4 16.9 15.4 0.3 0.3 54.15 3.35 42.30 2.31 11.31 8.16 35.60 38.23 7% 0.2 0.2 23.8 21.4 0.7 0.7 39.30 24.60 5.64 42.35 44.02 4% 1.7 1.8 25.3 23.4 1.1 1.3 44.05 21.73 26.08 Note : The above data based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
42. T e c h n i c a l TA Securities V i e w Thursday , April 20, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 • Foreign Technical Stock Watch FSSTI: 3,126.28 (-11.26, -0.36%) Singapore THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Stock Name FSSTI SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI YZJ Tel: +603-2167 9607 Close Bollinger Bands RSI Change High Low 19-Apr Lower Mid Upper 14d 3,126.28 (11.26) 3,129.87 3,113.90 3,114.46 3,160.76 3,207.06 41.63 3.76 18.79 9.53 21.54 64.03 3.46 7.65 3.64 1.07 6.64 7.48 10.17 2.33 0.16 10.22 40.92 3.37 44.55 0.35 3.79 1.90 2.02 3.06 1.74 2.61 2.81 3.67 0.46 1.07 0.05 (0.13) (0.02) (0.06) (0.97) 0.02 (0.05) 0.00 (0.03) (0.18) 0.02 0.00 0.00 (0.01) 0.00 (0.63) (0.02) (0.41) (0.01) 0.04 0.01 0.01 (0.06) (0.07) (0.05) (0.02) 0.00 (0.01) (0.06) 3.77 18.81 9.62 21.57 65.68 3.48 7.72 3.67 1.09 6.80 7.48 10.22 2.34 0.17 10.25 41.57 3.39 45.16 0.36 3.80 1.91 2.02 3.12 1.81 2.64 2.83 3.67 0.47 1.12 3.70 18.65 9.49 21.38 63.90 3.41 7.59 3.62 1.06 6.64 7.42 10.10 2.32 0.16 10.02 40.81 3.36 44.52 0.35 3.73 1.89 1.99 3.03 1.72 2.59 2.80 3.64 0.45 1.07 3.74 18.58 9.46 21.50 63.89 3.44 7.17 3.61 0.96 6.69 7.41 9.98 2.21 0.17 10.12 39.90 3.39 43.64 0.35 3.60 1.85 1.93 3.08 1.78 2.49 2.81 3.65 0.47 1.09 3.87 19.05 9.64 21.87 65.49 3.52 7.59 3.67 1.04 6.85 7.61 10.15 2.31 0.19 10.30 41.57 3.53 44.96 0.37 3.70 1.91 1.98 3.14 1.86 2.59 2.87 3.68 0.51 1.13 4.01 19.52 9.81 22.25 67.09 3.60 8.00 3.73 1.11 7.02 7.82 10.32 2.41 0.20 10.47 43.25 3.66 46.27 0.40 3.79 1.98 2.02 3.21 1.93 2.69 2.92 3.70 0.55 1.18 33.78 41.81 42.72 40.09 42.64 39.12 59.11 48.14 59.30 38.67 40.34 54.13 63.26 26.35 50.75 49.52 31.41 48.34 25.96 62.69 40.57 70.49 33.48 33.12 55.37 40.73 48.34 22.50 39.50 stsoo@ta.com.my www.taonline.com.my Moving Averages 10d 30d 50d DI + 3,164.30 3,156.59 3,136.56 15.94 DI 29.88 ADX Diff Line 16.64 (13.94) 4.33 MACD DMI MACD DMI MACD Signal Diff Recent Signal Signal Change 12.19 (7.861) SELL SELL - 3.83 19.06 9.64 21.86 65.52 3.50 7.72 3.68 1.07 6.86 7.57 10.18 2.32 0.18 10.32 41.59 3.48 45.44 0.36 3.70 1.93 1.99 3.13 1.84 2.63 2.85 3.68 0.49 1.14 30.69 31.09 25.37 26.97 23.63 24.08 13.24 17.26 15.67 31.39 22.60 19.84 12.77 38.32 25.25 18.02 35.66 18.20 28.71 15.41 24.41 14.61 31.31 37.52 14.07 26.68 14.09 40.28 22.34 20.80 11.49 13.19 19.47 15.69 27.15 46.91 17.53 32.94 16.60 14.68 11.33 42.47 29.88 28.04 33.08 26.05 15.74 26.06 18.73 22.51 26.03 13.65 24.86 19.54 13.05 16.50 24.47 39.54 -0.02 0.06 0.03 0.11 0.26 -0.04 0.18 0.02 0.02 0.03 0.01 0.06 0.05 -0.01 0.13 0.62 -0.01 0.49 -0.01 0.02 -0.01 0.01 -0.01 0.02 0.03 0.00 0.00 -0.01 0.03 3.90 19.06 9.62 21.79 65.58 3.54 7.42 3.67 1.02 6.84 7.60 10.09 2.24 0.19 10.29 40.89 3.52 44.81 0.38 3.69 1.92 1.96 3.16 1.87 2.57 2.87 3.68 0.51 1.13 3.92 18.94 9.60 21.59 64.92 3.64 7.19 3.62 1.01 6.79 7.58 10.01 2.19 0.20 9.96 39.95 3.50 43.87 0.39 3.64 1.97 1.96 3.18 1.80 2.52 2.85 3.68 0.52 1.06 10.32 20.05 15.13 15.04 13.72 8.80 26.48 16.83 26.90 20.40 16.47 14.90 35.99 9.57 22.29 23.59 14.21 19.78 9.53 28.30 12.52 23.71 14.19 20.74 21.54 16.68 12.33 8.78 18.09 DMI (20.37) (11.05) (10.24) (11.93) (9.91) (15.29) 13.24 (0.43) 11.23 (10.98) (6.13) (4.95) 23.22 (28.75) (2.97) 5.57 (21.45) 1.57 (19.18) 12.89 (11.88) 9.10 (17.12) (16.78) 7.47 (10.00) (1.76) (31.50) (4.25) -0.04 0.00 0.00 0.03 0.02 -0.04 0.16 0.01 0.02 0.01 -0.02 0.05 0.04 -0.01 0.08 0.42 -0.03 0.36 -0.01 0.03 -0.01 0.02 -0.02 0.00 0.03 -0.01 0.00 -0.01 0.01 (0.020) (0.051) (0.022) (0.074) (0.234) (0.003) (0.019) (0.012) 0.004 (0.027) (0.028) (0.009) (0.005) (0.002) (0.043) (0.200) (0.022) (0.136) (0.002) 0.005 0.000 0.005 (0.007) (0.019) (0.001) (0.006) (0.004) (0.006) (0.013) SELL SELL SELL SELL SELL SELL BUY SELL BUY SELL SELL SELL BUY SELL SELL BUY SELL BUY SELL BUY SELL BUY SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY BUY BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL - SELL SELL SELL - The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
43. INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Fundamentals of Foreign Technical Picks Bloomberg Ticker ST DBS OCBC UOB JM WIL HKL CAPL GENS KEP SGX SIA FNN NOBL CIT JS SPH JCNC GGR STE OLAM CT SCI SMM CD STH SIE IFAR SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI 3.76 4.21 18.79 9.53 21.54 21.18 -2% 1.9 2.1 11.1 10.4 3.4 3.5 22.15 17.41 5.59 64.03 63.99 0.00 4.1 4.4 15.6 14.6 2.5 2.6 67.27 52.42 15.89 3.46 3.86 10% 0.2 0.2 12.6 11.8 2.1 2.2 4.00 2.96 -3.62 7.65 7.43 -3% 0.4 0.4 19.5 18.8 2.5 2.6 7.88 5.79 20.85 3.64 4.08 11% 0.2 0.2 17.3 17.8 2.8 2.9 3.79 2.85 20.53 1.07 1.06 -1% 0.0 0.0 30.4 28.0 2.7 2.8 1.10 0.69 17.68 6.64 7.03 5% 0.5 0.6 13.1 12.0 3.3 3.6 7.23 5.10 14.68 7.48 7.98 6% 0.3 0.4 22.4 20.7 3.9 4.3 8.05 6.96 4.47 10.17 9.76 -4% 0.4 0.4 23.0 23.5 3.5 2.7 11.67 9.60 5.17 2.33 2.19 -6% 0.1 0.1 30.3 30.7 1.8 1.9 2.41 1.92 11.48 YZJSGD SP YZJ % upside 2017 2018 2017 2018 2017 2018 High Low YTD 11% 0.2 0.3 15.5 14.7 4.7 4.9 4.36 3.59 3.01 19.44 3% 1.793 1.963 10.5 9.6 3.3 3.4 19.42 14.63 8.36 9.57 0% 0.9 0.9 11.1 10.2 3.8 4.0 9.78 8.21 6.84 0.16 0.22 0.26 0.0 0.0 7.8 5.3 0.0 0.0 0.36 0.11 -4.12 10.22 10.88 6% 0.6 0.7 16.1 14.9 1.5 1.5 10.65 7.86 23.43 40.92 41.25 1% 2.8 3.0 14.8 13.8 0.8 0.8 43.78 27.35 23.25 3.37 3.28 -3% 0.1 0.2 22.6 22.3 5.0 4.9 4.13 3.36 -4.53 44.55 50.63 12% 2.2 2.5 14.3 13.0 2.0 2.1 46.38 31.60 8.05 0.35 0.38 10% 0.0 0.0 15.4 13.7 2.0 2.3 0.45 0.33 -19.77 3.79 3.68 -3% 0.2 0.2 21.9 20.8 4.1 4.2 3.80 3.01 17.34 1.90 1.99 5% 0.1 0.1 14.1 13.6 2.5 2.6 2.17 1.58 -3.55 2.02 2.13 5% 0.1 0.1 17.7 17.3 5.4 5.4 2.25 1.87 7.16 3.06 3.59 15% 0.2 0.3 12.9 10.6 3.0 3.4 3.38 2.44 7.37 1.74 1.72 -1% 0.1 0.1 32.8 25.2 1.6 1.8 2.09 1.22 26.09 2.61 2.93 11% 0.2 0.2 16.7 16.0 4.2 4.6 3.02 2.37 5.67 2.81 2.61 -8% 0.2 0.2 17.3 18.2 5.7 5.6 3.97 2.73 0.00 3.67 3.55 -3% 0.2 0.2 23.8 23.7 4.2 4.0 3.91 3.35 8.90 0.46 0.59 22% 427 500 10.3 8.8 16097 18011 0.60 0.44 -12.38 1.07 1.07 1% 0.5 0.5 10.8 11.3 18.3 18.3 1.19 0.71 30.67 Note : The above data based on Bloomberg consensus. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2