Bursa Malaysia Daily Market Report - 20 March

Transcription

1. Tuesday , 20 March, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . P o h H u a t Re s o u rc e s H o l d i n g s Be r h a d : H i t b y M a rg in C o m p r e s s io n 2 . U M W H o l d in g s B h d : A F a ir V a lu a t io n f o r M BM Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks , D a i ly M on e y Fl ow , D ai l y St o ck S cr een (L o c al ) 2. D ai l y For ei gn T ech n i c al St o ck P i cks ( A US ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
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Daily Market Commentary Tuesday , 20 March 2018 TA Research, e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (19.03.2018) (mil) Main Market 1,179.0 Warrants 290.3 ACE Market 463.9 Bond 7.5 ETF 0.5 LEAP 0.0 Total 1,941.2 Off Market 132.2 Volume +/-chg (RMmn) -870.9 1,557.2 -148.4 43.1 78.0 75.6 6.5 0.5 0.5 0.6 (0.01) 0.0 1,676.9 54.5 358.1 Value Value/ +/-chg Volume Up Down -2574.7 1.32 227 354 -6.5 0.15 68 153 1.9 0.16 33 63 0.2 0.06 3 2 0.5 1.16 1 2 0.0 0.31 0 0 0.86 332 574 -69.2 2.71 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP March Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA (mn) 51.5 25.2 12.0 12.0 10.0 5.0 5.0 4.1 3.2 2.0 1.3 @ @ @ @ @ @ @ @ @ @ @ % YTD chg 1,847.94 13,036.80 15,758.13 1,844.00 1.55 3.16 -37.95 3.50 0.08 0.02 -0.24 0.19 2.85 0.73 -7.58 3.31 24,610.91 7,344.24 7,042.93 21,480.90 2,475.03 31,513.76 3,498.29 1,799.79 6,289.57 3,279.25 1,868.05 5,959.43 -335.60 -137.74 -121.21 -195.61 -18.94 11.79 -13.85 -11.97 -15.38 9.37 5.03 10.01 -1.35 -1.84 -1.69 -0.90 -0.76 0.04 -0.39 -0.66 -0.24 0.29 0.27 0.17 -0.44 6.39 -8.39 -5.64 0.31 5.33 2.80 2.63 -1.04 -0.84 -1.65 -1.74 (RM) Counter 0.33 0.86 8.15 15.68 0.50 1.60 1.40 0.47 0.06 0.06 0.38 PBBANK TENAGA CIMB AXIATA HLBANK SIMEPLT DIGI GENTING GENM IOICORP Exchange Rate USD/MYR 3.9173 0.003 USD/JPY 106.15 0.480 EUR/USD 1.229 -0.0033 Mkt Cap. Chg (RM’mn) (RM) 89,278 88,956 66,977 48,412 38,457 37,405 35,765 34,445 29,672 28,150 0.10 0.02 0.04 0.03 0.08 0.02 0.06 0.04 0.01 0.03 News Bites Vol. (mn) 3.93 5.65 12.41 3.92 0.58 4.44 1.78 0.65 2.15 2.12 Commodities Futures Palm Oil (RM/mt) 2,427.00 9.00 Crude Oil ($/Barrel) 62.16 -0.09 Gold ($/tr.oz.) 1,316.70 2.80 Important Dates HSSEB - 1:10 Rights Issue - RI of up to 31.9m shares together with BI of up to 15.9m shares and up to 47.9m free detachable warrants. 1 rights share for every 10 existing shares held, at an issue price of RM1.30 per rights share, together with 1 bonus share and 3 warrants for every 2 rights shares subscribed. LISTING ON: 21/03/2018. HARTA - 1:1 Bonus Issue - BI of up to 1,714.3m shares. 1 bonus share for every 1 existing share held. Ex-Date: 23/03/2018. Entitlement Date: 27/03/2018. LISTING ON: 28/03/2018. The overnight Wall Street correction should spillover to depress markets in the region and locally, raising risk sentiment amid turmoil in the White House and ahead of the US central bank's policy meeting. Immediate support for the index stays at the 50-day moving average level now at 1,842, followed by the lower Bollinger band at 1,836, with stronger supports at 1,820, then 1,800. On the upside, immediate resistance will be last Tuesday's high of 1,864, followed by the 27 Feb high of 1,872, with tough hurdle expected from the 2 Feb peak of 1,880. Any near-term price strength on ABMB shares above the upper Bollinger band (RM4.34) should encourage profit-taking and selling as overbought momentum increase, with tough hurdle seen from the 11/5/17 peak (RM4.49), while key retracement supports are from the 61.8%FR (RM4.15) and 50%FR (RM4.04). Likewise, a push above the upper Bollinger band (RM7.31) or the 27/2/18 high (RM7.39) on CIMB will aggravate overbought momentum and fuel profit-taking interest, while pullbacks should find immediate support at the 50-day ma (RM7.03), with stronger retracement support at the 23.6%FR (RM6.70). Top 10 KLCI Movers Based on Mkt Cap. Off Market BJCORP KAREX PCHEM TENAGA SAPNRG WASEONG ROHAS MEDAINC MTRONIC XINGHE MEXTER % chg Bursa Malaysia ended mixed on Monday, with investors sidelined ahead of the US Federal Reserve's two-day monetary policy meeting mid-week. The KLCI gained 1.55 points to close at 1,847.94, after ranging between early low of 1,845.45 and high of 1,850.16, as losers beat gainers 574 to 332 on cautious turnover totaling 1.94bn shares worth RM1.67bn. • YTL Power International Bhd's indirect wholly-owned subsidiary YTL Jawa Energy BV is acquiring Dutch company Bel Air Den Haag Beheer BV, which owns the 306-room Mariott The Hague, for EUR60.3mn (RM289.6mn). • Eco World International Bhd (EWI) said it has completed Stage 1 acquisitions of six sites in the UK for GBP63.8mn (RM348.5mn). • YKGI Holdings Bhd has entered into mutual confidential agreements with CSC Steel Holdings Bhd and NS BlueScope Malaysia Sdn Bhd to dispose of certain assets. • TRC Synergy Bhd's subsidiary and another firm are jointly suing the Brunei Economic Development Board for B$13.0mn (RM38.2mn) with regard to an airport project. . • Lafarge Malaysia Bhd will be supplying RM270.0mn worth of cement for all eight packages of work for the East Coast Rail Link (ECRL) project. • The Public Works Department (JKR) has accepted Leweko Resources Bhd's RM34.5mn tender to replace old bridges in Peninsular Malaysia. • Cabnet Holdings Bhd has proposed a bonus issue of warrants on the basis of one warrant for every two shares held, alongside a three-foreight bonus issue of its shares. • Tenaga Nasional Bhd (TNB) has signed two large-scale solar power purchase agreements with special purpose companies (SPC) set up by the successful bidders. • Willowglen MSC Bhd has proposed a one-for-one bonus issue to increase liquidity of its counter. • Parkson Holdings Bhd's indirect Chinese subsidiary has successfully bid for part of a property in Wuxi, China that the unit is currently renting, for RMB200.0mn (RM124.0mn) cash. • Malaysian Resources Corp Bhd (MRCB) is selling a 1.9-acre piece of land on Jalan Kia Peng to the Social Security Organisation (Socso) for RM323.0mn. • Luster Industries Bhd has proposed to undertake the diversification of its business to include property development and construction. • The Finance Ministry has tabled the Supplementary Supply (2017) Bill 2018, requesting over RM7bn to cover expenses. • Malaysian vehicle sales fell 4% to 40,578 units in February 2018 from a year ago. • Malaysian households having access to the Internet have increased by 15.6% points to 85.7% in 2017 as compared to 70.1% in 2015. • Japan's central bank policymakers said it needs to stick with quantitative easing with inflation still well below its 2% price target. • Japan's trade balance returned to surplus in February, with strength in the global economy supporting export growth even as lunar new year holidays caused a drop in sales to China. • House prices in majority of the Chinese cities increased in February. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. Tuesday , March 20, 2018 FBMKLCI: 1,847.94 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Brief Market View, News in Brief: Corporate, Economy, and Share Buybacks Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my M a r k e t V i e w Overnight US Slump to Damaged Sentiment Bursa Malaysia ended mixed on Monday, with investors sidelined ahead of the US Federal Reserve’s two-day monetary policy meeting mid-week. The KLCI gained 1.55 points to close at 1,847.94, after ranging between early low of 1,845.45 and high of 1,850.16, as losers beat gainers 574 to 332 on cautious turnover totaling 1.94bn shares worth RM1.67bn. Support at 1,842/1,836; Resistance at 1,864 The overnight Wall Street correction should spillover to depress markets in the region and locally, raising risk sentiment amid turmoil in the White House and ahead of the US central bank’s policy meeting. Immediate support for the index stays at the 50-day moving average level now at 1,842, followed by the lower Bollinger band at 1,836, with stronger supports at 1,820, then 1,800. On the upside, immediate resistance will be last Tuesday’s high of 1,864, followed by the 27 Feb high of 1,872, with tough hurdle expected from the 2 Feb peak of 1,880. Take Profit ABMB & CIMB Any near-term price strength on ABMB shares above the upper Bollinger band (RM4.34) should encourage profit-taking and selling as overbought momentum increase, with tough hurdle seen from the 11/5/17 peak (RM4.49), while key retracement supports are from the 61.8%FR (RM4.15) and 50%FR (RM4.04). Likewise, a push above the upper Bollinger band (RM7.31) or the 27/2/18 high (RM7.39) on CIMB will aggravate overbought momentum and fuel profit-taking interest, while pullbacks should find immediate support at the 50-day ma (RM7.03), with stronger retracement support at the 23.6%FR (RM6.70). Asian Markets Wobble Ahead of Fed Policy Meeting Asian markets were mixed on Monday, as traders turned their attention to the Federal Reserve's two-day policy meeting later in the week. Markets will focus on the two-day Federal Open Market Committee monetary policy meeting later in the week. The central bank is expected to raise interest rates and investors are keen on getting more clarity on the number of rate hikes expected this year. The meeting will also mark new Fed Chair Jerome Powell's first press conference. Japan's Nikkei share average fell, as investors responded to opinion polls showing falling support for Prime Minister Shinzo Abe amid a cronyism scandal that has gripped the country. The Nikkei fell 0.90 percent to 21,480.90. South Korea's benchmark Kospi index also slid 0.76 percent to end at 2,475.03. Meanwhile, China stocks ended higher, with gains led by healthcare firms, after Beijing formed a new economic team. The Shanghai Composite index was up 0.3 percent at 3,279.60. Over in Australia, the S&P/ASX 200 got off to a positive start to the week, with the index advancing 0.17 percent to close at 5,959.40. Energy stocks rose 1.65 percent, leading gains on the day after the rise in oil prices in the last session. Page 1 of 9
4. 20-Mar-18 Wall Street Slump led by Facebook on Regulation Concerns U .S. stocks slumped overnight, with the S&P and Nasdaq suffering their worst day in just over five weeks, as concerns over increased regulation for large tech companies was spearheaded by a plunge in Facebook shares. Facebook tumbled 6.8 percent as Chief Executive Mark Zuckerberg faced calls from both U.S. and European lawmakers to explain how a consultancy that worked on President Donald Trump’s election campaign gained access to data on 50 million Facebook users. The stock had its worst day since March 2014 and was down 10.8 percent from its closing record hit on Feb. 1, to put the stock squarely in correction territory, a drop of 10 percent from its high. Shares of Facebook dropped below their 50-day and 100day moving averages, two key technical levels. Other technology shares also saw some selling pressure, with Google-parent Alphabet and Apple, closing 3 percent and 1.5 percent lower, respectively. The Federal Reserve is expected to raise interest rates on Wednesday with new Fed chief Jerome Powell giving his first press conference. Market expectations for a March rate hike were at 94.4 percent as of Monday morning, according to the CME Group's FedWatch tool. The Dow Jones Industrial Average fell 335.6 points, or 1.35 percent, to close at 24,610.91, the S&P 500 lost 39.09 points, or 1.42 percent, to 2,712.92 and the Nasdaq Composite dropped 137.74 points, or 1.84 percent, to 7,344.24. Page 2 of 9
5. 20-Mar-18 N e w s I n B r i e f Corporate YTL Power International Bhd ’s indirect wholly-owned subsidiary YTL Jawa Energy BV is acquiring Dutch company Bel Air Den Haag Beheer BV, which owns the 306-room Mariott The Hague, for EUR60.3mn (RM289.6mn). Once completed, Bel Air would become YTL Jawa's wholly-owned subsidiary and an indirect subsidiary of YTL Power. YTL Power said the acquisition will enhance the group's earnings potential and is not expected to have any material effect on the earnings, net assets or gearing of the YTL Power group for the current financial year. (The Edge Markets / Bursa Malaysia) Comment: We are largely neutral on this smallish acquisition as it would have negligible impact on the Group's earnings and balance sheet. To recap the group has significant cash pile of RM8.0bn (net gearing: 1.7x, net debt /EBITDA : 7.4x). Furthermore, the group's core businesses mainly comprises power and utilities. Maintain Sell on YTL Power with TP of RM1.16 based on SOP. Eco World International Bhd (EWI) said it has completed Stage 1 acquisitions of six sites in the UK for GBP63.8mn (RM348.5mn) under EWI and the UK-based Willmott Dixon Holdings Ltd's development arm Be Living Holdings Ltd's planned joint development of 12 sites in Greater London and the South East of England. The completion of the Stage 1 Acquisitions has added about GBP1.1bn to EWI’s remaining gross development value (GDV) of GBP1.0bn (as at 31 October 2017) and upon completion of the Stage 2 sale and purchase agreements, the group’s GDV will increase by another GBP1.5bn. (The Edge Markets) YKGI Holdings Bhd has entered into mutual confidential agreements with CSC Steel Holdings Bhd and NS BlueScope Malaysia Sdn Bhd to dispose of certain assets, confirming a recent report by The Edge Malaysia weekly. The company said NS BlueScope is conducting due diligence on the proposed transaction, adding that it has not received any offer from the parties yet. (The Edge Markets) TRC Synergy Bhd's subsidiary and another firm are jointly suing the Brunei Economic Development Board for B$13.0mn (RM38.2mn) with regard to an airport project. TRC said its wholly-owned unit Trans Resources Corp Sdn Bhd and Swee Sdn Bhd initiated the suit in the High Court of Brunei to recover the amount in relation to the modernisation of the Brunei International Airport Terminal. (The Edge Markets / Bursa Malaysia) Lafarge Malaysia Bhd will be supplying RM270.0mn worth of cement for all eight packages of work for the East Coast Rail Link (ECRL) project. This follows a contract signed by the group’s wholly-owned subsidiary Lafarge Cement Sdn Bhd with China Communications Construction (ECRL) Sdn Bhd. The contract is from now until Dec 31, 2019 with the option for parties to renew the contract for a further two years, subject to mutually-agreed renewal terms and conditions. (The Edge Markets / Bursa Malaysia) The Public Works Department (JKR) has accepted Leweko Resources Bhd’s RM34.5mn tender to replace old bridges in Peninsular Malaysia. Leweko said its indirect subsidiary Dura Construction Sdn Bhd has received the letter of acceptance from JKR, and that the terms of the deal would be formalised in a contract signed by both parties. The contract is for a period of 24 months. (The Edge Markets / Bursa Malaysia) Cabnet Holdings Bhd has proposed a bonus issue of warrants on the basis of one warrant for every two shares held, alongside a three-for-eight bonus issue of its shares. The proposals will entail an issuance of 65.0mn bonus warrants as well as 48.8mn bonus Cabnet shares. Both the bonus warrants and shares will not be implemented in stages. It expects the proposals to be completed in the second quarter of 2018. (The Edge Markets / Bursa Malaysia) Page 3 of 9
6. 20-Mar-18 Tenaga Nasional Bhd (TNB) has signed two large-scale solar power purchase agreements with special purpose companies (SPC) set up by the successful bidders. The two bidders are TNB itself for a facility in Kuala Muda, Kedah and Gebeng Sdn Bhd for a facility in Kuantan, Pahang. The two SPC will each design, construct, own, operate and maintain a solar photovoltaic energy generating facility. TNB Bukit Selambau Solar Sdn Bhd's plant will have a capacity of 30MWac while Gebeng's is 29.92MWac. Their scheduled commercial operation date is Dec 31, 2020 and Feb 3, 2020, respectively. TNB also announced a final dividend of 21.41 sen per share for the financial year ended Dec 31, 2017, payable on April 19. The exdate is April 4. (The Edge Markets / Bursa Malaysia) Willowglen MSC Bhd has proposed a one-for-one bonus issue to increase liquidity of its counter. The proposal entails 248.0mn bonus shares to be issued in stages ex-capitalisation of reserve. As at March 12, the company has issued share capital of RM29.2mn. The proposed bonus issue is expected to be completed by the second quarter of 2018. (The Edge Markets / Bursa Malaysia) Parkson Holdings Bhd’s indirect Chinese subsidiary has successfully bid for part of a property in Wuxi, China that the unit is currently renting, for RMB200.0mn (RM124.0mn) cash. Parkson's Hong Kong-listed 54.97% subsidiary Parkson Retail Group Ltd (PRGL) said its 60%-owned Wuxi Sanyang Parkson Plaza Co Ltd succeeded in the judicial auction in bidding for the property from Sanyang Yinhui Properties Development Company Ltd, which has been declared bankrupt. The minimum bidding price was 189.6mn yuan. PRGL expects full payment of the acquisition to be satisfied by March 25. However, completion of the acquisition is still subject to the final confirmation of the Wuxi Intermediate Court, it added. (The Edge Markets / Bursa Malaysia) Malaysian Resources Corp Bhd (MRCB) is selling a 1.9-acre piece of land on Jalan Kia Peng to the Social Security Organisation (Socso) for RM323.0mn. MRCB said the group is expected to realise an estimated after-tax gain of RM30.0mn to MRCB Group from the proposed disposal, which is expected to improve its consolidated earnings per share for the financial year ending Dec 31, 2018. MRCB's indirect wholly-owned subsidiary Legasi Azam Sdn Bhd entered into a sale and purchase agreement with Socso for the proposed disposal. MRCB said the proceeds from the disposal will be utilised for the group’s working capital and property development activities within 12 months from receiving the purchase price. (The Edge Markets / Bursa Malaysia) Luster Industries Bhd has proposed to undertake the diversification of its business to include property development and construction. Luster said the proposed diversification is consistent with the group’s plan to reduce its dependence on its core existing business in the manufacturing of precision plastic parts and components and sub-assembly of plastic parts and products, as well as in precision engineering works and manufacturing of die-casting components. (The Edge Markets / Bursa Malaysia) Stifled by uncertainty in water supply has forced Top Glove Corporation Bhd, the world's largest rubber glove manufacturer, to invest in an infrastructure to ensure continuous supply of water and uninterrupted production. Founder and Executive Chairman Tan Sri Lim Wee Chai said the company had invested RM15.0mn in the infrastructure and equipment of its recently-completed reverse water treatment plant and ponds in Selangor. (Bernama) Page 4 of 9
7. 20-Mar-18 George Kent (Malaysia) Bhd's net profit rose 23.5% YoY to a record RM51.9mn in the fourth quarter ended Jan 31, 2018, on improved performance of its engineering division. Quarterly revenue, however, fell 8.6% YoY to RM172.9mn. George Kent declared a third interim dividend of 5 sen per share amounting to RM28.2mn, payable on April 25. For the full year, George Kent hit record levels once again, with net profit surging 22.9% YoY to RM124.4mn, while revenue grew 3% YoY to RM617.0mn. (The Edge Markets / Bursa Malaysia) Net profit for Poh Huat Resources Bhd’s first quarter ended Jan 31, 2018 plunged 64.7% YoY to RM6.2mn, due to margin compressions in both its Malaysian and Vietnamese operations. Quarterly revenue dipped by 0.96% YoY to RM161.9mn, largely due to a fall in contribution from its Vietnamese operations, even though its Malaysian business recorded a 23% increase in turnover. (The Edge Markets / Bursa Malaysia) Page 5 of 9
8. 20-Mar-18 N e w s I n B r i e f Economy Asia Finance Ministry Tables RM7bil Supplementary Supply Bill The Finance Ministry has tabled the Supplementary Supply (2017) Bill 2018, requesting over RM7bil to cover expenses. The Supplementary Supply Bill, tabled by Second Finance Minister Datuk Seri Johari Abdul Ghani, requested a total of RM7,122,833,728 from the Consolidated Fund for additional expenditure on services and expenses. This is on top of the country's 2017 budget of RM 260.8bil tabled by Prime Minister Datuk Seri Najib Tun Razak, who is also the Finance Minister. According to the Bill, the Government is seeking the additional budget for various ministries. It also includes contributions to Statutory Funds and the Public Services Department. Among the largest sum sought is for the Contribution to Statutory Funds amounting to RM2,710,809,316. Also seeking additional funds are the Education Ministry (RM891.1mil), Home Ministry (RM804.2mil), Agriculture and Agro-based Industry Ministry (RM685.5mil) and Health Ministry (RM479.1mil). (The Star) Vehicle Sales Fall 4% in February, Improve Outlook for March Vehicle sales fell 4% to 40,578 units in February 2018 from a year ago and the Malaysian Automotive Association (MAA) expects the sales to be better in March 2018. “Sales volume for March 2018 is expected to be slightly better than February 2018 due to longer working month as well as rush for deliveries by companies having their financial year-ending on March 31, 2018,” MAA said in a statement. The trade body said sales volume in February was 1,877 units lower than similar corresponding month in 2017. It said the sales volume in February was 9%, or 3,997 units lower than January 2018. It attributed the lower sales to shorter working month due to Chinese New Year festive holidays. Of total sales in February, 36,623 units comprised passenger vehicles, while the remaining 3,955 units consisted of commercial vehicles. Year-to-date, total industry volume was 2.2% lower at 87,153 units compared with 87,122 units in the similar corresponding period in 2017. Production was lower at 38,416 units in February 2018 compared with 43,127 units a year ago. Year-to-date, vehicle production jumped 20% to 106,418 to 88,659 units a year ago. (The Star) Households with Internet Access Increase to 85.7% in 2017 Households having access to the Internet have increased by 15.6 percentage points to 85.7% in 2017 as compared to 70.1% in 2015. In a statement, the Statistics Department said, households with computer and mobile phone access rose to 74.1% and 98.1% respectively as compared to 67.6% and 97.9% in 2015. Chief Statistician Malaysia, Datuk Seri Dr Mohd Uzir Mahidin, said individuals using Internet aged 15 years and above in Malaysia rose by nine percentage points to 80.1% in 2017 from 71.1% in 2015. Among the popular Internet activities carried out by the Internet users were participating in social networks such as Facebook, Instagram, Twitter and others (86.3%); downloading images, films, video or music; playing or downloading games (81.2%); getting information about goods and services (80.4%); and, downloading software or applications (74.5%). “Other activities carried out by Internet users were Internet banking (37.6%), and purchasing or ordering goods or services (23.2%),” he said. The percentage of individuals using computer also increased to 69.8% in 2017 from 68.7% in 2015, while the percentage of individuals using mobile phone rose by 0.2 percentage point in 2017 to 97.7% from 97.5% in 2015. (The Star) BOJ Members Say Bank Should Stick with QE, Worried About Yen Japan’s central bank policymakers said it needs to stick with quantitative easing with inflation still well below its 2 percent price target, a summary of opinions of board members at the last rate review showed on Monday. One Bank of Japan board member said further yen strength and stock declines could curb capital expenditure and consumer spending which could delay hitting the inflation target, the summary showed. At the March policy meeting, the BOJ kept monetary settings unchanged and its chief brushed aside speculation of an early exit from quantitative easing. “There is no change in the judgment that it is necessary to Page 6 of 9
9. 20-Mar-18 continue pursuing powerful monetary easing with persistence so that highly accommodative financial conditions are maintained ,” one board member was quoted as saying. The BOJ releases a bullet-point summary of the opinions voiced by the board members at its policy meetings roughly a week after they are held. The views do not identify whose opinions they are. A more thorough minutes of the debate will be issued several weeks later. The BOJ is not at a point where it can consider normalizing policy, but the BOJ should explain that normalizing policy is not the same as tightening policy, one member said. This remark underscores the communication challenge the BOJ faces, as subdued inflation forces the bank to maintain its massive stimulus despite the rising costs of the policy, such as the hit to bank profits from near-zero interest rates. (Reuters) Japan's Exports Expand for 15th Month Despite Holidays in Asia Japan’s trade balance returned to surplus in February, with strength in the global economy supporting export growth even as lunar new year holidays caused a drop in sales to China. The value of exports increased 1.8 percent in February from a year earlier (forecast +1.4%). Imports grew 16.5 percent (forecast +16.0%). The February trade balance was a surplus of 3.4 billion yen ($32 million) versus the forecast of 89.1 billion yen. The continued growth in exports suggest the global recovery remains firm, and sales to China should bounce back after the decline caused by the holidays. Yet a stronger yen poses some risks to the Japanese economy by making exports less competitive and weighing on inflation by reducing the price of imports. The chances of a trade war breaking out due to U.S. President Donald Trump’s tariffs is another potential source of downside for Japan. Japan’s adjusted trade balance showed a deficit of 201.5 billion yen (forecast -90.8 billion yen). Exports to China, Japan’s largest trading partner, slipped 9.7 percent in February from a year earlier. Shipments to the U.S. rose 4.3 percent. Those to the EU increased 11.5 percent. Exports of automobiles and aircraft-related goods increased while imports of clothing from China, LNG from Australia and petroleum products from South Korea showed strength. (Bloomberg) China House Prices Rise in February House prices in majority of the Chinese cities increased in February, figures from the National Bureau of Statistics showed Monday. On a monthly basis, house prices climbed 44 cities out of 70 surveyed by the government. It fell in 16 cities and remained flat in 10 cities. The highest rise in house prices was noted in Nanchong, by 1.7 percent and the steepest decline was seen in Shenzhen, by 0.6 percent. Compared with the same month of 2017, house prices grew in 60 cities out of the 70 cities in February, while it decreased in 9 cities. (RTT) United States Trade Associations to Petition Trump Administration to Halt China-Tariff Plans Forty-five trade associations, representing a wide swath of the U.S. economy, are petitioning the Trump administration to halt plans to levy tariffs on China and to work instead with other nations to press Beijing to end restrictions on foreign firms. Imposing heavy tariffs, said a letter by the trade groups, “would trigger a chain reaction of negative consequences for the U.S. economy, provoking retaliation; stifling U.S. agriculture, goods, and services exports; and raising costs for businesses and consumers.” The White House is putting together a package of measures, including tariffs on at least an annual $30 billion of Chinese imports, to pressure Beijing to end requirements that U.S. companies transfer technology to Chinese firms, The Wall Street Journal has reported. A decision may come this week or the next. While it may be too late for the group to fend off tariffs, it hopes at least to slow down the process. The group wants U.S. industries affected by any tariffs to be able review proposed levies and make comments before they go into effect. “We request that the administration allow industry experts the opportunity to comment on these issues, including the economic impact of any potential actions,” said the letter, which is dated Sunday. The group includes trade associations covering the technology, retail, agricultural and consumer-goods industries. It includes household names such as Apple Inc., Alphabet Inc.’s Google, IBM, Nike Page 7 of 9
10. 20-Mar-18 Inc . and Walmart Inc. “We focused on tariffs because we know they don’t work,” said Dean Garfield, the chief executive of the Information Technology Industry Council, which organized the letter. (The Wall Street Journal) Europe and Uni ted Kingdom Eurozone Trade Surplus at 3-Month Low The Eurozone trade surplus declined to a three-month low in January as exports declined amid an increase in imports, data from Eurostat showed Monday. The trade surplus came in at seasonally adjusted EUR 19.9 billion versus a EUR 23.2 billion surplus in December. This was the lowest since October 2017. Exports dropped 0.7 percent in January from December, while imports grew 1.1 percent. On an unadjusted basis, the trade balance showed a surplus of EUR 3.3 billion compared to a deficit of EUR 1.4 billion in the same period of 2017. Exports increased 9.1 percent from last year and imports gained 6.3 percent in January. The EU28 exports fell 1.0 percent, while imports rose 3.2 percent. As a result, the trade balance was in EUR 1.0 billion deficit. In December, the surplus totaled EUR 5.7 billion. Separately, Eurozone construction output decreased for the first time in seven months in January, data from Eurostat showed Monday. Construction output fell a seasonally adjusted 2.2 percent month-over-month in January, reversing a 0.7 percent rise in December, which was revised up from a 0.1 percent increase reported earlier. Moreover, this was the biggest decline since January 2017, when output had fallen 3.4 percent. Building activity contracted 3.1 percent over the month and civil engineering activity slid by 0.9 percent. On a yearly basis, construction output growth accelerated to 3.7 percent in January from 1.4 percent in the prior month, revised up from 0.5 percent. (RTT) UK Growth Forecast Raised by British Chambers of Commerce The British Chambers of Commerce (BCC) has raised its UK growth forecast, but warns it will be among the worst performing G7 economies until 2020. The BCC has raised its GDP forecast for 2018 from 1.1% to 1.4% and in 2019 from 1.3% to 1.5%. Its first forecast for 2020 is for 1.6% growth. The hike is driven by slightly stronger than expected consumer spending. And it says the UK's export performance is expected to remain robust on the back of strong global growth. But it says with imports also likely to continue to grow, the contribution of net trade to the UK's GDP growth over the near term is to be limited, "particularly with little evidence of a sterling boost to the UK's overall net trade position". And despite the upgrades, UK GDP growth is set to remain well below the historical average throughout the forecast period. (BBC) German Growth Sustained Strong Momentum in Q1, Bundesbank Says Germany's robust economic momentum was likely sustained in the first quarter and continued to be led by the industry which remained strong, thanks to increased orders in the second half of last year, the Bundesbank said in its monthly report released Monday. The slight decline in the Ifo survey's expectations index is set to affect only the second quarter, the bank noted. The latest Ifo survey showed that the German business confidence weakened notably in February as near term outlook of firms deteriorated on political uncertainty and market turmoil. The construction sector is also doing well amid excellent order situation, the Bundesbank report said. However, the bank said several capacity bottlenecks are likely to hamper the rapid expansion of the sector and hence, its contribution to growth is set to be modest in the current quarter. Strong momentum in the labor market was sustained and private consumption continued to provide support, the report added. (RTT) Page 8 of 9
11. 20-Mar-18 Share Buy-Back : 19 March 2018 Company AMPROP E&O FIMACOR FITTERS GLOMAC HAIO KFIMA MALAKOF SNTORIA SUNWAY SYSCORP SYSTECH UNIMECH Bought Back Price (RM) Hi/Lo (RM) 80,000 238,000 10,000 600,000 155,000 22,600 10,000 1,200,000 50,600 1,100,000 436,000 200,000 18,000 0.715/ 0.71 1.43 2.00 0.40 0.495/ 0.485 4.80/ 4.75 1.49 0.87/ 0.875 0.645/ 0.64 1.58/ 1.56 0.25/ 0.24 0.285/ 0.28 1.00/ 0.98 0.72/ 0.70 1.43/ 1.40 2.00 0.40/ 0.395 0.48/ 0.47 4.80/ 4.73 1.50/ 1.49 0.885/ 0.865 0.645/ 0.63 1.59/ 1.56 0.25/ 0.23 0.29/ 0.275 1.00/ 0.97 Total Treasury Shares 16,541,000 26,588,747 4,352,000 36,044,900 6,453,700 8,989,388 152,900 45,318,500 5,513,600 34,020,262 2,151,000 1,800,000 7,403,010 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 9 of 9
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) PER (X) Div Yield (%) FY18 FY19 FY18 FY19 FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 19-Mar-18 AUTOMOBILE BAUTO 2.22 2.33 5.0% Buy 2,573 0.52 12.1 19.0 18.3 11.7 4.9 5.2 2.47 -10.1 1.84 20.7 0.9 MBMR 2.47 2.68 8.5% Buy 965 0.70 24.7 26.9 10.0 9.2 2.4 2.8 2.60 -5.0 2.01 22.9 12.3 PECCA 1.34 1.62 20.9% Buy 247 0.47 9.7 10.9 13.8 12.3 3.7 3.7 1.70 -21.2 1.25 7.2 -13.5 SIME 2.66 2.55 -4.1% Sell 18,090 1.63 13.2 16.4 20.2 16.2 1.2 1.5 3.06 -13.1 2.03 31.3 20.4 UMW 6.22 5.52 -11.3% Sell 7,267 1.46 28.6 40.2 21.7 15.5 2.3 3.2 6.98 -10.9 4.70 32.3 19.6 BANKS & FINANCIAL SERVICES ABMB 4.32 4.60 6.5% Buy 6,688 1.19 32.6 35.8 13.2 12.1 3.7 3.7 4.49 -3.8 3.62 19.3 5.9 AFFIN 2.53 2.40 -5.1% Sell 4,916 0.93 22.2 23.9 11.4 10.6 3.2 3.2 2.98 -15.0 2.22 13.9 9.5 AMBANK 4.15 4.70 13.3% Buy 12,509 1.42 38.1 44.4 10.9 9.4 4.3 4.3 5.70 -27.2 3.92 5.9 -5.9 CIMB 7.26 8.60 18.5% Buy 66,977 1.64 58.2 59.9 12.5 12.1 4.0 4.1 7.39 -1.8 5.32 36.5 11.0 HLBANK 18.80 19.30 2.7% Hold 38,457 0.85 116.8 126.8 16.1 14.8 2.6 2.6 20.02 -6.1 13.44 39.9 10.6 MAYBANK 10.32 11.50 11.4% Buy 112,203 1.00 74.1 78.3 13.9 13.2 5.3 5.3 10.58 -2.5 8.89 16.1 5.3 PBBANK 23.12 27.30 18.1% Buy 89,278 0.70 153.3 166.5 15.1 13.9 2.5 2.6 23.20 -0.3 19.82 16.6 11.3 RHBBANK 5.31 6.10 14.9% Buy 21,293 1.50 54.3 59.0 9.8 9.0 2.8 2.8 5.61 -5.3 4.71 12.7 6.2 BURSA 11.08 11.80 6.5% Buy 5,956 0.89 43.9 45.0 25.3 24.6 3.2 3.2 11.48 -3.5 9.30 19.1 9.5 -13.2 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 BUILDING MATERIALS ANNJOO 3.35 4.34 29.6% Buy 1,736 1.32 43.7 46.6 7.7 7.2 6.5 7.4 3.98 -15.8 2.27 47.6 CHINHIN 1.10 1.39 26.4% Buy 612 1.00 11.4 11.1 9.6 9.9 5.8 5.1 1.49 -26.2 1.00 10.6 -9.1 ENGTEX 1.05 1.38 31.4% Buy 447 0.83 14.2 16.1 7.4 6.5 2.0 3.0 1.52 -30.9 1.01 4.0 -4.5 GADANG 0.92 1.69 83.7% Buy 609 1.14 14.2 18.1 6.5 5.1 3.3 3.3 1.37 -32.8 0.92 0.5 -17.1 GAMUDA 5.05 6.00 18.8% Buy 12,412 0.86 34.5 35.6 14.6 14.2 2.4 2.4 5.52 -8.5 4.58 10.3 1.8 IJM 2.64 2.96 12.1% Hold 9,578 1.20 13.7 18.6 19.2 14.2 3.6 3.6 3.61 -26.9 2.55 3.5 -13.4 CONSTRUCTION KAB 0.25 0.38 50.0% Buy 8 na 31.4 37.3 0.8 0.7 4.0 4.8 0.33 -24.2 0.25 2.0 -16.7 PESONA 0.37 0.46 26.0% Buy 254 1.17 5.0 4.5 7.4 8.0 4.1 4.1 0.74 -50.3 0.36 1.4 -18.9 -17.9 SENDAI 0.71 0.55 -22.5% Sell 555 1.26 9.1 8.5 7.8 8.4 1.4 1.4 1.39 -48.9 0.63 12.7 SUNCON 2.12 2.65 25.0% Hold 2,740 0.64 14.7 16.4 14.4 12.9 3.8 4.2 2.64 -19.7 1.72 23.3 -15.5 WCT 1.36 1.50 10.3% Sell 1,913 0.99 11.3 10.8 12.0 12.6 2.2 2.2 2.48 -45.1 1.30 4.6 -16.0 LITRAK 5.75 6.26 8.9% Hold 3,035 0.32 45.6 47.1 12.6 12.2 4.3 4.3 6.15 -6.5 5.40 6.5 3.6 CARLSBG 18.80 18.09 -3.8% Buy 5,783 0.73 87.8 91.8 21.4 20.5 4.6 4.7 21.00 -10.5 14.36 30.9 22.9 HEIM 20.72 21.64 4.4% Hold 6,259 0.41 93.0 101.6 22.3 20.4 3.6 3.8 23.04 -10.1 16.98 22.0 9.6 AEON 1.78 1.97 10.7% Buy 2,499 0.18 7.5 8.9 23.6 19.9 2.5 2.8 2.52 -29.4 1.45 22.8 1.1 AMWAY 7.70 8.59 11.6% Buy 1,266 0.49 48.3 49.9 15.9 15.4 5.2 5.3 8.10 -4.9 6.97 10.5 5.4 F&N 31.02 33.74 8.8% Buy 11,370 0.25 122.7 145.8 25.3 21.3 2.6 3.1 34.50 -10.1 23.40 32.6 14.9 CONSUMER Brewery Retail HUPSENG 1.05 1.25 19.0% Buy 840 0.41 5.7 5.9 18.4 17.8 5.7 5.7 1.28 -18.0 1.03 1.9 -3.7 JOHOTIN 1.01 1.48 46.5% Buy 314 1.01 11.1 11.7 9.1 8.6 5.9 6.4 1.76 -42.6 1.00 1.0 -16.5 NESTLE 129.60 129.90 0.2% Hold 30,391 0.44 322.2 360.2 40.2 36.0 2.3 2.5 163.00 -20.5 77.20 67.9 25.6 PADINI 4.67 4.67 0.0% Sell 3,072 0.82 28.0 30.4 16.7 15.4 2.7 2.8 5.50 -15.1 2.86 63.4 -11.6 -15.1 POHUAT 1.52 1.78 17.1% Buy 334 0.59 20.1 23.1 7.6 6.6 3.9 5.3 2.07 -26.5 1.43 6.3 QL 4.91 5.41 10.2% Hold 7,966 0.59 12.8 14.7 38.3 33.3 0.9 1.0 5.05 -2.8 3.47 41.5 12.9 SIGN 0.61 0.92 50.8% Buy 140 0.61 6.9 9.2 8.8 6.6 4.1 5.7 1.07 -43.0 0.57 7.0 -13.5 28.00 34.72 24.0% Hold 7,995 1.47 170.8 168.8 16.4 16.6 5.7 5.7 48.50 -42.3 26.50 5.7 -30.0 GENTING 8.99 11.58 28.8% Buy 34,445 1.44 55.1 61.8 16.3 14.5 1.8 1.8 9.92 -9.4 8.63 4.1 -1.5 GENM 5.25 6.68 27.2% Buy 29,672 1.44 27.6 32.0 19.0 16.4 2.3 2.5 6.28 -16.4 4.80 9.5 -5.3 2.12 3.22 51.9% Buy 2,856 0.57 19.9 26.0 10.7 8.1 7.5 8.5 2.95 -28.1 2.06 2.9 -5.4 CCMDBIO 2.87 3.40 18.5% Buy 801 0.91 16.2 17.4 17.7 16.5 3.7 3.9 3.05 -5.9 1.97 45.7 13.4 IHH 6.05 6.40 5.8% Sell 49,850 0.74 11.9 15.0 50.9 40.5 0.5 0.6 6.33 -4.4 5.42 11.6 3.2 KPJ 0.90 1.13 25.6% Buy 3,793 0.57 3.9 4.4 23.0 20.7 2.4 2.7 1.14 -21.1 0.87 3.4 -7.2 HARTA 11.60 7.80 -32.8% Sell 19,209 1.14 25.2 28.8 46.1 40.2 1.3 1.5 12.18 -4.8 4.77 143.2 8.6 KOSSAN 7.74 9.73 25.7% Buy 4,949 0.58 37.4 42.1 20.7 18.4 2.4 2.7 8.79 -11.9 5.62 37.7 -4.6 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves SUPERMX 2.70 2.70 0.0% Buy 1,770 0.62 20.0 22.6 13.5 12.0 1.9 2.3 2.92 -7.5 1.69 59.8 35.0 TOPGLOV 9.70 12.20 25.8% Buy 12,183 0.69 35.3 42.7 27.5 22.7 1.5 1.8 10.24 -5.3 4.56 112.7 21.4 KAREX 0.81 0.93 14.8% Sell 812 0.86 1.8 3.0 45.7 26.7 0.5 0.9 2.26 -64.2 0.79 3.2 -37.7 SCIENTX 8.22 10.01 21.8% Buy 4,019 0.87 67.5 79.4 12.2 10.4 2.6 3.2 9.85 -16.5 7.23 13.7 -5.1 SKPRES 1.73 2.20 27.2% Buy 2,163 0.92 10.4 14.8 16.7 11.7 3.0 4.3 2.35 -26.4 1.24 39.5 -24.1 ASTRO 2.30 3.10 34.8% Buy 11,992 0.86 14.0 13.7 16.5 16.8 5.7 5.9 2.94 -21.8 2.30 0.0 -13.2 MEDIA PRIMA 0.47 0.45 -4.3% Sell 521 1.32 -3.8 -1.7 na na 0.0 0.0 1.28 -63.3 0.42 13.3 -38.2 STAR 1.26 1.20 -4.8% Sell 930 1.06 6.2 5.9 20.3 21.2 7.1 7.1 2.22 -43.2 1.25 0.8 -23.6 INDUSTRIAL MEDIA
13. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.45 0.69 53.3% Buy 791 1.67 4.0 4.3 11.3 10.4 2.2 2.2 0.69 -34.8 0.39 16.9 -7.2 LCTITAN 6.40 6.10 -4.7% Buy 14,547 na 56.3 60.9 11.4 10.5 3.9 4.2 6.53 -2.0 4.14 54.6 36.2 MHB 0.75 0.81 8.0% Sell 1,200 1.49 0.5 1.7 156.1 45.0 0.0 0.0 1.16 -35.3 0.63 20.0 -9.1 MISC 7.05 7.00 -0.7% Sell 31,470 1.15 50.1 53.8 14.1 13.1 4.3 4.3 7.90 -10.8 6.73 4.8 -5.0 PANTECH 0.57 0.69 21.1% Buy 424 1.27 6.1 6.8 9.4 8.4 4.8 5.4 0.74 -23.0 0.52 10.7 -11.6 PCHEM 8.15 8.84 8.5% Hold 65,200 0.84 52.5 53.8 15.5 15.1 3.2 3.2 8.29 -1.7 6.80 19.9 5.8 SAPNRG 0.49 1.25 155.1% Buy 2,936 2.06 -6.5 -5.0 na na 0.0 0.0 2.10 -76.7 0.40 24.1 -31.0 SERBADK 3.45 4.15 20.3% Buy 5,066 na 27.7 31.5 12.5 10.9 2.6 2.9 3.68 -6.3 1.63 111.7 6.5 UMWOG 0.31 0.39 25.8% Buy 2,547 1.87 0.4 1.2 81.2 26.8 0.0 0.0 0.68 -54.3 0.27 14.8 1.6 UZMA 1.45 1.57 8.3% Hold 464 0.78 12.9 13.9 11.3 10.5 0.0 0.0 1.98 -26.8 1.26 15.1 13.3 FGV 1.80 1.98 10.0% Sell 6,567 1.65 3.5 4.4 52.1 41.3 2.8 2.8 2.18 -17.4 1.51 19.2 6.5 IJMPLNT 2.22 2.25 1.4% Sell 1,955 0.18 6.7 10.8 32.9 20.5 3.6 4.1 3.23 -31.3 2.20 0.9 -19.0 IOICORP 4.61 5.08 10.2% Buy 28,150 0.88 20.9 21.6 22.1 21.3 6.4 3.8 4.76 -3.2 4.21 9.6 4.1 KFIMA 1.49 1.89 26.8% Buy 420 0.68 14.1 14.7 10.5 10.1 6.0 6.0 1.96 -24.0 1.45 2.8 -5.1 KLK 25.36 27.07 6.7% Hold 27,008 0.64 120.7 125.7 21.0 20.2 2.4 2.4 25.78 -1.6 23.66 7.2 1.4 SIMEPLT 5.50 6.25 13.6% Buy 37,405 na 21.0 22.1 26.1 24.9 2.5 2.7 6.00 -8.3 4.58 20.1 -8.3 TSH 1.54 1.97 27.9% Buy 2,126 0.49 9.3 9.6 16.5 16.0 1.6 1.6 1.90 -18.9 1.53 0.7 -6.7 UMCCA 6.25 6.73 7.7% Sell 1,310 0.39 22.7 34.8 27.5 17.9 2.7 2.9 7.08 -11.7 5.81 7.5 -4.0 GLOMAC 0.48 0.40 -16.7% Sell 381 0.76 1.5 2.5 31.8 19.4 4.2 4.2 0.67 -28.6 0.46 4.3 -13.4 HUAYANG 0.52 0.58 11.5% Sell 183 0.86 0.7 3.4 78.4 15.3 1.0 1.0 1.16 -55.2 0.52 1.0 -14.8 IBRACO 0.74 0.80 8.8% Buy 365 na 7.2 10.7 10.2 6.9 4.1 5.4 0.98 -24.6 0.50 47.0 -9.8 IOIPG 1.73 2.00 15.6% Sell 9,526 0.85 16.3 15.7 10.6 11.1 3.5 3.5 2.22 -22.1 1.71 1.2 -6.5 MAHSING 1.01 1.59 57.4% Buy 2,452 0.93 11.8 11.3 8.5 9.0 6.4 6.4 1.64 -38.4 1.01 0.0 -30.3 SIMEPROP 1.46 1.51 3.4% Hold 9,929 na 7.5 7.5 19.4 19.5 2.7 2.1 1.78 -18.0 1.04 40.4 -18.0 SNTORIA 0.65 0.76 17.8% Buy 362 0.13 8.3 8.6 7.8 7.5 1.6 1.6 0.91 -29.1 0.56 15.2 -7.2 SPB 4.51 5.10 13.1% Hold 1,550 0.60 18.7 24.0 24.1 18.8 2.7 2.7 5.50 -18.0 4.39 2.7 -8.0 SPSETIA 3.22 3.73 15.8% Buy 12,085 0.94 19.8 19.4 16.3 16.6 3.7 3.7 4.38 -26.5 3.07 4.9 -19.5 SUNWAY 1.56 1.75 12.2% Hold 7,622 0.90 11.8 12.4 13.2 12.5 3.8 3.8 1.96 -20.4 1.34 16.7 -4.3 SUNREIT 1.66 1.87 12.7% Hold 4,889 0.87 10.0 10.7 16.6 15.5 6.0 6.4 1.90 -12.6 1.63 1.8 -12.6 CMMT 0.99 1.48 49.5% Buy 2,017 0.77 7.8 8.3 12.6 12.0 8.2 8.7 1.83 -45.9 0.98 1.0 -45.9 PLANTATIONS PROPERTY REIT POWER & UTILITIES MALAKOF 0.87 0.82 -5.7% Sell 4,312 0.99 6.6 7.2 13.2 12.1 8.0 8.0 1.30 -33.1 0.86 1.8 -11.2 PETDAG 24.80 24.08 -2.9% Sell 24,638 0.48 114.7 116.3 21.6 21.3 3.5 3.5 25.97 -4.5 20.81 19.2 3.1 PETGAS 17.86 19.46 9.0% Buy 35,340 0.86 99.3 100.0 18.0 17.9 3.9 3.9 20.08 -11.1 15.82 12.9 2.2 TENAGA 15.70 18.22 16.1% Buy 88,956 0.59 131.3 127.5 12.0 12.3 4.1 4.0 16.12 -2.6 13.54 16.0 2.9 YTLPOWR 1.12 1.16 3.6% Sell 8,881 0.92 8.6 8.9 13.0 12.6 4.5 4.5 1.50 -25.3 1.05 6.7 -13.2 TELECOMMUNICATIONS AXIATA 5.35 6.50 21.5% Buy 48,412 1.56 15.9 19.4 33.6 27.5 1.5 2.9 5.82 -8.1 4.54 17.8 -2.6 DIGI 4.60 5.15 12.0% Hold 35,765 0.98 19.7 20.4 23.4 22.6 4.3 4.4 5.19 -11.4 4.36 5.5 -9.8 MAXIS 5.76 6.05 5.0% Sell 44,989 1.10 25.2 25.0 22.9 23.0 3.5 3.5 6.60 -12.7 5.48 5.1 -4.2 TM 5.58 7.20 29.0% Buy 20,969 0.69 22.8 24.9 24.4 22.4 3.7 4.0 6.69 -16.6 5.49 1.6 -11.4 ELSOFT 2.54 3.30 29.9% Buy 699 0.89 13.1 15.0 19.4 17.0 3.6 4.1 2.95 -13.9 1.70 49.4 -5.9 IRIS 0.18 0.22 25.7% Buy 433 2.49 0.0 0.3 636.1 55.3 0.0 0.0 0.25 -28.6 0.14 29.6 -5.4 INARI 3.13 3.65 16.6% Buy 6,470 0.75 13.7 15.3 22.8 20.4 3.2 3.5 3.82 -18.1 1.89 66.0 -7.9 TECHNOLOGY Semiconductor & Electronics Note: INARI proposed bonus issue shares on the basis of 1 for 2. For more detail please refer to 30.01.18 report. MPI 9.23 10.70 15.9% Buy 1,836 0.89 73.9 86.9 12.5 10.6 3.5 3.5 14.52 -36.4 8.42 9.6 -26.9 UNISEM 2.61 2.70 3.4% Sell 1,915 1.14 19.0 20.3 13.8 12.8 4.6 4.6 4.25 -38.6 2.49 4.8 -28.5 TRANSPORTATION Airlines AIRASIA 4.12 4.93 19.7% Hold 13,769 1.13 49.3 49.3 8.4 8.4 1.9 1.9 4.75 -13.3 2.77 48.7 23.0 AIRPORT 8.86 8.61 -2.8% Sell 14,700 1.13 18.0 18.8 49.3 47.1 1.5 1.1 9.45 -6.2 6.88 28.8 0.8 Freight & Tankers PTRANS 0.27 0.46 70.4% Buy 342 na 2.3 3.8 11.6 7.2 2.6 4.1 0.38 -29.3 0.19 41.4 -3.6 TNLOGIS 1.07 1.45 35.5% Buy 489 1.02 10.3 10.5 10.4 10.2 4.7 4.7 1.83 -41.6 1.07 0.0 -20.1 WPRTS 3.54 4.06 14.7% Buy 12,071 0.46 15.6 20.0 22.7 17.7 1.1 1.4 4.19 -15.5 3.12 13.5 -4.3 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) % upside Recom Market Cap. (S$m) Beta EPS (cent) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 28.07 30.50 8.7% Buy 71,968 1.11 212.3 246.0 13.2 11.4 2.3 2.5 29.7 -5.5 18.47 52.0 OCBC 13.18 14.30 8.5% Buy 55,151 1.20 109.5 123.2 12.0 10.7 6.7 7.7 13.6 -3.2 9.45 39.5 13.0 6.4 UOB 28.10 27.80 -1.1% Hold 46,696 1.17 216.6 244.0 13.0 13.0 2.8 2.8 29.0 -3.1 21.38 31.4 6.2 PLANTATIONS WILMAR 3.21 3.31 3.1% Hold 20,539 0.82 27.4 29.3 11.7 11.0 3.1 3.4 3.9 -17.1 2.97 8.1 3.9 IFAR 0.33 0.36 10.8% Hold 466 1.05 3.8 4.1 8.6 7.9 1.6 1.7 0.5 -40.4 0.32 1.6 -16.7 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
14. RESULTS UPDATE Tuesday , March 20, 2018 FBMKLCI: 1,847.94 Sector: Consumer THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM1.78 (+17.1%) Poh Huat Resources Holdings Berhad Last Traded: RM1.52 Hit by Margin Compression Ooi Beng Hooi BUY Tel: +603-2167 9612 benghooi@ta.com.my Review Excluding RM4.0mn of forex loss, Pohuat’s 1QFY18 core profit of RM10.2mn came in below expectations, accounting for 20.8% and 18.5% of our and consensus’ FY18 full-year estimates. The variance was mainly due to higher-than-expected raw material costs and stronger-thanexpected RM against the greenback. No dividend was declared corresponding period last year. versus 2sen/share declared in the 1QFY18 core profit dropped 41.9% to RM10.2mn. The significant drop in the bottom line was contributed by: i) strengthening of RM against USD; ii) increase in raw material costs; and iii) shift in product mix to more affordable ranges which comparatively yield lower margin. While operations in Malaysia saw a 22.8% YoY jump in revenue to RM67.1mn, thanks to strong demand for its panel-based bedroom sets and office furniture, its operations in Vietnam registered a 12.7% decline in revenue to RM94.8mn, as a result of a shift of its product mix to middle and affordable range. Both the operations in Vietnam and Malaysia experienced margin compression. PBT margins for Vietnam and Malaysia suffered 10.1%-pts and 4.0%-pts drops to 5.5% and 6.5% respectively in the reporting quarter versus the same period last year. Common reasons for the margin compression are weakening of USD against RM and price escalation of raw materials. QoQ, core profit declined by 47.5% to RM10.2mn, negatively affected by strengthening of RM versus USD, higher raw material costs, and lower revenue (-5.7% to RM161.9mn) Impact Following the weaker-than-expected results, earnings forecasts for FY18/FY19/FY20 were cut by 9.9%/8.9%/8.7% respectively to factor in higher production costs. In the absence of dividend payout for 1QFY18, we also reduced our FY18 dividend payout assumption from 8sen/share to 6sen/share. Outlook Although the economic condition in US - the main target market for Pohuat, remains healthy and demand for furniture resilient, a shift in market preference to the more affordable range is observed by the company. This, together with a stronger RM against USD may lead to lower margin in the foreseeable future. www.taonline.com.my Share Information Bloomberg Code Bursa Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) PHR MK POHUAT 7088 Main Market 219.7 333.9 2.07/1.43 298.3 38.6 0.6 Tay Kim Huat - 23.56 Lim Pei Tiam - 12.99 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 (9.9) (8.9) 44.2 50.7 55.3 60.1 80.0 84.4 Buy (Maintained) Financial Indicators FY18 net cash (3.6) (42.7) 10.2 1.4 1.3 FY19 net cash 12.4 12.3 10.4 1.5 1.2 vs. TA vs. Consensus % of FY 20.8 18.5 Below Below Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth POHUAT 0.7 (13.1) (19.6) (22.4) FBM KLCI 0.9 7.9 5.5 7.4 Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) Scorecard (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 3
15. 20-Mar-18 Valuation Following the earnings adjustments , we lower the target price from RM2.01 to RM1.78, based on an unchanged 11x CY18 earnings. Maintain BUY on POHUAT. CY18 net profit Target PE (RMmn) multiple 55.5 11 Valuation (RMmn) 610.4 Proceeds from warrants conversion 47.7 658.1 280.1 2.35 Enlarged share base (mn shares) Target price (RM/share) Table 1: Earnings Summary (RMmn) FYE Oct (RMmn) FY16 FY17 FY18F FY19F FY20F R evenue 535.2 614.3 604.5 616.0 638.6 Gros s profit 107.0 121.9 111.8 120.1 124.5 68.0 77.5 67.1 76.0 80.0 12.7 12.6 11.1 12.3 12.5 60.4 68.7 57.5 65.7 69.0 E BITDA E BITDA ma rg in (% ) E BIT Core P B T 59.9 69.8 56.3 64.4 67.8 Net profit 47.1 56.0 44.2 50.7 53.4 Core net profit 48.4 58.5 44.2 50.7 53.4 Core E P S (s en) 21.7 27.3 18.7 20.6 20.8 PER (x) 7.0 5.6 8.1 7.4 7.3 Gros s dividend (s en) 8.0 8.0 6.0 8.0 8.0 Dividend yield (% ) 5.3 5.3 3.9 5.3 5.3 R OE (% ) 21.2 22.2 14.5 14.7 13.8 Table 2: 1QFY18 Results Analysis (RMmn) FYE Oct R evenue 1Q17 4Q17 1Q18 QoQ (% ) YoY (% ) 3MFY17 3MFY18 YoY (% ) 163.5 171.7 161.9 (5.7) (1.0) 163.5 161.9 Cos t of S a les (129.1) (136.6) (136.8) 0.1 5.9 (129.1) (136.8) (1.0) 5.9 Gros s profit 34.3 35.1 25.1 (28.4) (26.9) 34.3 25.1 (26.9) Opera ting profit 20.0 22.2 8.4 (62.0) (57.8) 20.0 8.4 (57.8) F ina nce Cos ts (0.5) (0.3) (0.4) 20.3 (7.3) (0.5) (0.4) (7.3) Core P BT 19.3 25.0 16.0 (48.8) (38.2) 19.4 12.0 (38.2) Income ta x expens e (2.0) (3.5) (1.9) (45.9) (3.5) (2.0) (1.9) (3.5) Non-controlling interes ts (0.2) 0.5 (0.1) (131.1) (6.7) (0.2) (0.1) (6.7) Net profit 17.7 17.8 6.2 (65.0) (64.7) 17.7 6.2 (64.7) Core net profit 17.6 19.4 10.2 (47.5) (41.9) 17.6 10.2 (41.9) R eported E P S (s en) 8.3 8.4 2.8 (66.0) (65.7) 8.3 2.8 (65.7) E P S (s en) 8.2 9.1 4.7 (48.9) (43.5) 8.2 4.7 (43.5) Dividend (s en) 2.0 3.0 0.0 (100.0) (100.0) 2.0 0.0 (100.0) % pts % pts 11.9 13.6 7.4 (6.2) (4.5) 11.9 7.4 (4.5) - P AT 10.7 10.7 3.8 (6.9) (7.0) 10.7 3.8 (7.0) - E ffective ta x ra te 10.2 15.1 15.9 0.9 5.7 10.2 15.9 5.7 Ma rg in (% ): - P BT % pts Page 2 of 3
16. 20-Mar-18 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, March 20, 2018, the analyst, Ooi Beng Hooi, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
17. COMPANY UPDATE Tuesday , March 20, 2018 FBMKLCI: 1,847.94 Sector: Automotive THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* UMW Holdings Bhd TP: RM5.52 (-11.3%) Last Traded: RM6.22 A Fair Valuation for MBM Abel Goon Tel: +603-2072 1277 ext. 1641 Sell abelgoon@ta.com.my We attended UMW Holdings Bhd (UMW) analyst briefing regarding its MBM Resources Bhd (MBM) acquisition to obtain further clarity on the acquisition, future plans and goals going forward. We remain positive on the acquisition of MBM given the attractive valuations and potential synergies. That said, we continue to believe that the end result may be a listed MBM with UMW as the substantial shareholder. Nevertheless, we maintain Sell on UMW with unchanged TP of RM5.52 given stretched valuations. Fair Valuation for MBM Although the street continues to believe that the offer price of RM2.56/share is unattractive to MBM’s shareholders, UMW’s management believes the offer price is fair. Management was rather nonchalant and stated that it would not increase the offer price highlighting that it was a “take it or leave it” offer for Med-Bumikar Mara. Furthermore, UMW stated that the relatively low PER of 10x for Perodua is justified given: 1) the relatively small stake, i.e. non-controlling stake, 2) outlook of Malaysia’s TIV, and 3) increased competition from national marque Proton after Geely takeover. As previously mentioned in our report dated 12 March 2018, assuming similar valuations for Perodua, UMW values the rest of MBM at circa RM57mn which includes its net debt position of RM91mn as of 30 December 2016. This implies an equity value of RM148mn for the 100% stake in MBM. Note that MBM has pared down its borrowings from 0.05x net gearing in 2016 to 0.01x in 2017. Plenty of Synergies and Negative Goodwill Gained. UMW is expected to recognise circa RM400mn of negative goodwill for the acquisition and subsequent privatisation of MBM. Additionally, acquiring MBM will not only allow consolidation of Perodua but will enhance UMW’s manufacturing and equipment division. We note that MBM manufactures alloy wheels, seatbelts, airbags and steering wheels. We believe that there will be decent cost saving as UMW will utilise this business to supply parts for new CKD models to be assembled in the Bukit Raja plant. Furthermore, UMW will increase its presence in the commercial vehicle segment as it gains access to Hino and Daihatsu dealerships. Timeline and Future Plans To recap, UMW’s offer to Med-Bumikar expires on 28 March 2018 unless an extension is agreed upon by both parties. If successful, UMW will then: 1) begin its due diligence exercise, 2) obtain approvals from the principals (Toyota and Perodua) and shareholders, and 3) carry out the general offer to the remaining shareholders. UMW estimates a timeframe of circa 3 months from the offer acceptance to completion of the proposals. UMW also shared that it will likely dispose of non-synergistic assets after the completion of this acquisition. The latter includes, amongst others, the Volvo, Volkswagen and Daihatsu dealerships. www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) UMWH MK 4588 Main Market 1,168.3 7,266.8 6.98/4.70 988 26.8 1.7 PNB - 54.2 EPF - 9.3 KWAP - 6.3 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 0.0 0.0 334.4 469.6 335.3 441.9 100 106 Sell (Maintain) Financial Indicators Net Debt / Equity (x) FCPS (sen) Price / CFPS (x) Core ROA (%) NTA/Share (RM) Price/NTA (x) FY18 0.6 53.2 11.7 3.1 3.7 1.7 FY19 0.5 69.6 8.9 4.0 4.0 1.5 Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth UMW (6.0) 23.9 14.1 10.2 FBM KLCI (0.4) 5.8 4.2 5.6 (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 4
18. 20-Mar-18 Rights Issue Not Necessary UMW noted that the rights issue proposed is not necessary . However, the proposal is a prudent measure as it tries to minimise its gearing level. According to our estimates, UMW’s gearing level will increase to 0.9x from 0.66x currently, if it does not carry out the rights issue. That said, we remain positive on the right issue given the 20%-30% expected discount to theoretical ex-rights price, and earnings accretion after the acquisition. (Please refer to our reports dated 12 March 2018 and 14 March 2018 for further details). Our View To recap, we opine that the valuation for MBM is rather cheap, but deem it reasonable, as MBM has been trading below the offer price for the past 1.5 years. We are also largely positive on the rights issue, given the earnings accretion after the MBM acquisitions. Furthermore, we do not discount the possibility that a third party buyer may emerge if UMW does not increase its offer price. Lastly, we reiterate that the likely end result will be UMW as the new major shareholder in a listed MBM. Impact Maintain earnings forecast pending completion of the acquisitions. Valuation We maintain our TP of RM5.52 based on SOP valuations. We opine that UMW is fully valued for now, at 15.1x CY19 PER compared to peers’ average of 13x CY19 PER. Thus, our Sell recommendation remains. Nevertheless, we believe if the acquisitions are successful, upside for the Group is immense as it will hold 70.6% stake in Perodua (Malaysia’s largest automotive marque by sales volume). SOP Valuation Segments Equity Value PER (x) (RM mn) Reasoning Automotive 15 6,313 2x premium to peer's average Equipment 12 1,492 Regional peers' average M&E Serendah Land 10 125 523 Regional peers' average 50% discount to RNAV Total Equity Value 8,452 Net debts (holding co.) (1,286) Shares outstanding (mn) Holding co. discount 1,168 10% SOP TP (RM) 5.52 Page 2 of 4
19. 20-Mar-18 Earnings Summary Income Statement (RM mn) FYE Dec 2016 2017* 2018E 2019F 2020F Revenue 10,436.8 11,046.5 11,666.8 12,781.4 14,105.1 EBITDA 1,191.0 671.5 736.1 977.5 1,045.0 Dep. & amortisation (569.5) (336.3) (358.4) (369.1) (380.2) Net finance cost (105.1) (39.2) (10.1) (15.1) (16.5) Associate & JV 183.6 171.7 188.2 206.3 226.2 EI (942.5) (214.8) 0.0 0.0 0.0 PBT (242.5) 252.9 555.7 799.6 874.5 Taxation (133.5) (122.3) (111.6) (166.9) (190.0) MI (120.9) (106.1) (109.7) (163.1) (177.3) Continued Net profit (496.9) 24.5 334.4 469.6 507.2 Discontinued Net profit (1,161.2) (675.7) 0.0 0.0 0.0 Core net profit 445.6 239.3 334.4 469.6 507.2 Reported EPS (sen) (141.9) (55.7) 28.6 40.2 43.4 Core EPS (sen) 38.1 20.5 28.6 40.2 43.4 Core PER (x) 16.3 30.4 21.7 15.5 14.3 DPS (sen) 0.0 0.0 14.0 20.0 22.0 Div Yield (%) 0.0 0.0 2.3 3.2 3.5 NTA/share (RM) 5.9 3.6 3.7 4.0 4.3 Balance Sheet (RM mn) FYE Dec Fixed assets Associates & JV Others Non-current assets ST borrowings Payables Others Current Liabilities Cash Flow (RM mn) FYE Dec PBT Continued PBT Discontinued Depreciation Associates & JV Net finance costs Changes in WC Interest paid Tax paid Others Investment cash flow 2016 2017* (242.5) 252.9 0.0 (802.8) 569.5 336.3 (183.6) (171.7) 105.1 39.2 200.7 528.8 (185.5) (119.0) (133.5) (122.3) 160.5 504.2 (772.5) (1,980.5) 2018E 555.7 0.0 358.4 (188.2) 10.1 18.3 (78.5) (111.6) 0.0 (531.6) 2019F 799.6 0.0 369.1 (206.3) 15.1 32.9 (91.6) (166.9) 0.0 (523.5) 2020F 874.5 0.0 380.2 (226.2) 16.5 39.0 (104.7) (190.0) 0.0 (511.9) LT borrowings Others Non-current liabilities Liabilities Held for Sale Net debt raised/(repaid) Equity raised(repaid) Dividend Others Financial cash flow 853.6 0.0 (212.7) (558.3) 82.7 500.0 0.0 (239.2) 0.0 260.8 500.0 0.0 (309.2) 0.0 190.8 Net cash flow (399.1) (1,428.3) 293.4 Forex and others (141.2) 420.5 176.0 0.0 (75.9) 6.5 106.6 Inventories Receivables Cash Others Current assets Assets Held for Sale Total assets 2016 7,678.5 2,008.1 791.3 10,478.0 2017* 2,660.6 1,708.3 451.4 4,820.3 2018E 2,902.2 1,896.5 451.4 5,250.1 2019F 3,133.1 2,102.8 451.4 5,687.2 2020F 3,352.9 2,329.0 451.4 6,133.2 1,931.2 988.5 1,857.4 1,008.0 5,785.1 0.0 1,342.7 993.6 1,163.4 1,298.2 4,798.0 323.7 1,418.1 1,049.4 1,456.8 1,298.2 5,222.6 323.7 1,553.6 1,149.7 1,876.0 1,298.2 5,877.5 323.7 1,714.5 1,268.8 2,321.0 1,298.2 6,602.4 323.7 11,888.4 13,059.4 2,639.3 1,878.6 234.0 4,752.0 9,942.0 10,796.3 0.66 685.3 809.7 2,662.1 2,811.6 153.4 153.4 3,500.8 3,774.7 934.1 3,080.2 153.4 4,167.7 1,058.4 3,399.3 153.4 4,611.0 3,715.8 931.0 4,646.7 0.0 2,069.7 143.2 2,213.0 52.4 2,821.0 143.2 2,964.2 52.4 3,196.6 143.2 3,339.8 52.4 16,263.0 Shareholder funds MI Total Equity E&L 4,718.6 2,145.7 6,864.3 16,263.0 2,445.3 143.2 2,588.6 52.4 3,082.4 3,253.5 1,093.4 1,127.2 4,175.8 4,380.7 9,942.0 10,796.3 3,489.8 3,740.4 1,214.4 1,315.7 4,704.2 5,056.1 11,888.4 13,059.4 Ratios PBT margin Core net margin (%) (%) (2.3) 4.3 2.3 2.2 4.8 2.9 6.3 3.7 6.2 3.6 500.0 0.0 (332.5) 0.0 167.5 Liquidity ratios Current ratio Quick ratio (x) (x) 1.2 0.8 1.4 1.0 1.4 1.0 1.4 1.0 1.4 1.1 419.2 444.9 Total lia./equity (x) 2.0 1.9 2.0 2.0 2.1 0.0 0.0 0.0 Net debt/equity (x) 1.0 0.5 0.6 0.5 0.5 10.4 Leverage ratios Cash beginning 2,734.1 2,171.2 1,163.4 1,456.8 1,876.0 Cash ending 2,193.9 1,163.4 1,456.8 1,876.0 2,321.0 0.0 0.0 0.0 0.0 Revenue (%) 5.8 5.6 9.6 1,163.4 1,456.8 1,876.0 2,321.0 EBITDA (%) (43.6) 9.6 32.8 6.9 Pretax (%) n.m. >100 43.9 9.4 Core net earnings (%) (46.3) 39.8 40.4 8.0 Deposits set aside Cash after Deposits (336.5) 1,857.4 Key Assumptions Sales Volume (units) 70,000.0 73,500.0 Growth ratios 77,175.0 *demerger of UMWOG in FY17 Discontinued operations excluded from historical figures Page 3 of 4
20. 20-Mar-18 Appendix Figure 1 . UMW’s Offer Price Breakdown Source: Company Figure 2. Assumed Equity Value of MBM Source: Company Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, March 20, 2018, the analyst, Abel Goon, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
21. Tuesday , 20 March, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s P ic ks 2. D ai l y Mon e y F low of T e ch n i c a l St o ck Pi ck s 3. D ai l y Mon e y F low of FB MK L CI 4. D ai l y S t o c k S c r e e n Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
22. Technical View Tuesday , March 20, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,847.94 (+1.55, +0.08%) Chartist: Stephen Soo Close Name 19/Mar FBMKLCI 1847.94 Tel: +603-2167 9607 Change High Low 1.55 1,850.16 1,845.45 Bollinger Bands RSI stsoo@ta.com.my Moving Averages www.taonline.com.my DMI MACD DMI MACD Recent Signal DMI MACD Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Signal Change 1,836.56 1,853.96 1,871.35 49.79 1,848.64 1,848.25 1,841.23 23.24 30.48 15.94 (7.24) 3.61 5.42 (1.816) SELL SELL - - AFFIN 2.45 -0.02 2.47 2.40 2.20 2.39 2.57 65.38 2.47 2.37 2.39 31.25 16.64 28.85 14.61 0.04 0.02 0.018 BUY BUY - ABMB 4.32 0.00 4.32 4.26 3.99 4.16 4.33 59.37 4.18 4.16 4.17 25.67 15.82 22.13 9.85 0.03 0.01 0.019 BUY BUY - - AMBANK 4.15 0.03 4.17 4.09 3.74 4.25 4.75 41.98 4.06 4.33 4.48 22.65 28.83 26.83 -6.18 -0.12 -0.12 0.003 SELL BUY - BUY -18.48 -0.06 SELL - AXIATA 12.86 31.34 29.54 -0.04 (0.017) SELL - CIMB 7.26 0.04 7.27 7.21 7.08 7.20 7.31 57.58 7.20 7.13 7.02 24.41 20.55 24.32 3.86 0.07 0.08 (0.012) BUY SELL - DIGI 4.60 0.06 4.61 4.55 4.59 4.79 4.99 23.60 4.71 4.81 4.83 10.28 36.04 25.91 -25.76 -0.06 -0.04 (0.022) SELL SELL - - GAMUDA 5.05 0.01 5.08 5.00 4.92 5.02 5.11 52.48 5.03 4.99 5.04 25.56 14.46 14.26 11.09 0.00 0.00 0.002 BUY BUY - BUY GENTING 8.99 0.04 9.03 8.88 8.71 8.94 9.17 49.03 8.89 8.95 9.15 11.56 19.01 23.46 -7.45 -0.05 -0.07 0.023 SELL BUY - - GENM 5.25 0.01 5.28 5.22 4.98 5.21 5.43 50.25 5.17 5.23 5.33 26.17 18.44 14.05 7.73 -0.02 -0.04 0.026 BUY BUY - - IHH 6.05 -0.04 6.10 6.04 5.95 6.06 6.17 55.34 6.06 6.03 5.99 19.15 14.01 17.95 5.15 0.02 0.03 (0.001) BUY SELL - - IOICORP 4.61 0.03 4.62 4.55 4.57 4.67 4.77 41.51 4.70 4.64 4.60 16.46 24.39 16.00 -7.93 0.03 0.04 (0.009) SELL SELL - SELL MALAKOFF 0.87 0.00 0.89 0.87 0.85 0.90 0.95 40.40 0.88 0.91 0.93 11.14 22.28 25.50 -11.14 -0.07 -0.06 (0.012) SELL SELL - - MAXIS 5.76 -0.01 5.84 5.74 5.66 5.92 6.18 42.47 5.83 5.95 5.98 13.42 29.61 24.20 -16.18 -0.06 -0.04 (0.019) SELL SELL - - 10.32 0.00 10.34 10.26 10.14 10.37 10.61 52.78 10.43 10.27 10.12 18.68 28.33 30.67 -9.65 0.09 0.12 (0.028) SELL SELL SELL - 1.17 0.00 1.18 1.16 1.14 1.20 1.26 46.71 1.17 1.19 1.19 19.97 18.29 13.86 1.69 0.00 0.00 (0.004) BUY SELL - - MAYBANK MBSB 5.35 0.03 5.37 5.29 5.20 5.47 5.73 40.47 5.39 5.49 5.53 - RHBBANK 5.31 -0.06 5.37 5.26 5.22 5.35 5.48 53.39 5.33 5.31 5.29 15.95 18.68 12.76 -2.72 0.02 0.02 (0.008) SELL SELL - - SIME 2.66 -0.04 2.70 2.64 2.56 2.69 2.81 52.55 2.63 2.71 2.74 19.68 25.66 24.68 -5.98 -0.02 -0.02 (0.003) SELL SELL - - 15.70 0.02 15.74 15.64 15.55 15.66 15.76 51.98 15.63 15.69 15.71 13.71 15.77 14.91 -2.05 -0.01 -0.01 (0.000) SELL SELL - - TM 5.58 -0.02 5.63 5.53 5.44 5.81 6.18 36.64 5.64 5.89 5.95 23.09 27.00 21.65 -3.91 -0.11 -0.10 (0.017) SELL SELL - - WPRTS 3.54 0.02 3.56 3.49 3.47 3.61 3.75 46.10 3.55 3.58 3.56 11.68 19.23 13.75 -7.55 -0.01 0.00 (0.008) SELL SELL - - AIRASIA 4.12 -0.03 4.18 4.10 3.88 4.24 4.60 50.00 4.09 4.22 4.09 19.99 26.91 22.99 -6.92 -0.01 0.02 (0.032) SELL SELL - - AIRASIA X 0.41 -0.01 0.42 0.41 0.38 0.41 0.44 52.55 0.40 0.40 0.40 23.46 15.85 22.11 7.61 0.00 0.00 (0.001) BUY SELL - - ARMADA 0.84 0.02 0.84 0.82 0.81 0.85 0.88 43.96 0.84 0.84 0.84 15.57 23.51 18.90 -7.75 0.00 0.00 (0.004) SELL SELL - - BINAPURI 0.33 0.00 0.33 0.32 0.32 0.33 0.35 46.07 0.33 0.33 0.34 10.54 18.30 21.37 -2.96 0.00 0.00 0.000 SELL BUY - - CMSB 4.17 0.07 4.18 4.12 4.06 4.24 4.42 42.79 4.16 4.22 4.17 17.43 20.39 15.61 4.08 -0.01 0.01 (0.021) BUY SELL BUY - DIALOG 2.80 0.02 2.82 2.75 2.58 2.68 2.78 60.30 2.67 2.67 2.66 22.73 18.66 15.76 4.08 0.02 0.01 0.009 BUY BUY BUY - ECO WORLD 1.10 -0.02 1.13 1.08 1.03 1.24 1.45 25.56 1.15 1.28 1.34 15.65 34.47 62.85 -18.81 -0.07 -0.06 (0.012) SELL SELL - - TENAGA EKOVEST 0.98 -0.03 1.00 0.98 0.94 0.99 1.04 51.96 0.97 0.99 1.02 26.36 19.04 13.02 7.32 -0.01 -0.01 0.001 BUY BUY BUY BUY GADANG 0.92 -0.02 0.94 0.92 0.93 1.02 1.11 20.66 0.98 1.04 1.08 7.40 37.71 39.33 -30.31 -0.04 -0.03 (0.008) SELL SELL - - HSL 1.61 0.00 1.61 1.54 1.58 1.62 1.65 52.74 1.61 1.60 1.56 24.85 28.37 14.53 -3.52 0.01 0.02 (0.006) SELL SELL - ISKANDAR 1.42 -0.01 1.42 1.40 1.28 1.35 1.43 68.96 1.36 1.35 1.37 29.01 11.38 29.88 17.64 0.01 0.00 0.013 BUY BUY - - KIMLUN 2.10 0.00 2.10 2.10 2.08 2.13 2.18 24.20 2.11 2.16 2.20 23.49 48.05 26.69 -24.56 -0.03 -0.03 0.000 SELL BUY - BUY KKBE 0.97 0.02 0.97 0.95 0.93 0.95 0.97 48.87 0.94 0.94 0.96 27.59 20.79 23.11 6.80 0.00 0.00 (0.001) BUY SELL - - MUDAJAYA 0.75 0.01 0.76 0.75 0.72 0.83 0.94 24.25 0.78 0.85 0.88 20.26 43.56 24.62 -23.29 -0.04 -0.03 (0.010) SELL SELL - - MRCB 1.01 0.01 1.02 1.00 0.96 1.07 1.18 34.02 1.02 1.08 1.14 15.47 24.04 24.19 -8.56 -0.03 -0.03 (0.004) SELL SELL - - NAIM 1.01 0.00 1.02 1.01 0.96 1.01 1.07 48.32 0.99 1.01 1.06 35.23 19.02 13.05 16.21 -0.02 -0.02 0.001 BUY BUY - BUY - SAPURA ENERGY 0.49 0.01 0.51 0.47 0.38 0.59 0.79 32.01 0.49 0.62 0.70 17.40 34.05 41.81 -16.65 -0.08 -0.07 (0.008) SELL SELL - - SUNCON 2.12 0.01 2.14 2.10 2.04 2.28 2.53 30.30 2.17 2.35 2.43 13.14 30.52 33.92 -17.38 -0.09 -0.08 (0.012) SELL SELL - - UEMS 1.00 -0.01 1.01 1.00 0.94 1.06 1.18 36.34 1.00 1.07 1.11 14.64 25.78 30.97 -11.15 -0.03 -0.03 (0.005) SELL SELL - - UMWOG 0.31 0.00 0.32 0.31 0.29 0.32 0.34 46.30 0.31 0.32 0.34 24.67 17.98 16.34 6.69 -0.01 -0.01 0.001 BUY BUY - - WASEONG 1.60 -0.02 1.65 1.58 1.43 1.58 1.74 58.75 1.56 1.52 1.46 24.61 21.33 20.98 3.28 0.04 0.04 (0.007) BUY SELL - - WCT 1.36 -0.01 1.40 1.35 1.29 1.50 1.71 36.60 1.41 1.51 1.59 17.16 31.34 23.27 -14.18 -0.07 -0.05 (0.017) 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
23. 20-Mar-18 Technical Comments : Take Profit ABMB & CIMB Any near-term price strength on ABMB shares above the upper Bollinger band (RM4.34) should encourage profit-taking and selling as overbought momentum increase, with tough hurdle seen from the 11/5/17 peak (RM4.49), while key retracement supports are from the 61.8%FR (RM4.15) and 50%FR (RM4.04). Likewise, a push above the upper Bollinger band (RM7.31) or the 27/2/18 high (RM7.39) on CIMB will aggravate overbought momentum and fuel profit-taking interest, while pullbacks should find immediate support at the 50-day ma (RM7.03), with stronger retracement support at the 23.6%FR (RM6.70). ABMB RM4.32 (UNCH) Z BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 4.34 4.16 3.98 10-day 30-day 50-day RM RM RM BUY Recent Signal Signal Change DMI DAILY MACD Recent Signal Signal Change CIMB RM RM RM SIMPLE MOVING AVERAGES 7.31 7.20 7.10 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change BUY RM7.26 (+0.04) BOLLINGER BANDS Upper Middle Lower 4.21 4.16 4.18 RM RM RM 7.21 7.13 7.03 DAILY MACD SELL Page 2 of 4
24. 20-Mar-18 Daily Money Flow of Technical Stock Picks Malaysia Chartist : Stephen Soo 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 31 32 33 34 35 36 37 38 39 40 41 42 Name Tel: +603-2167 9607 Total Money Flow (RM'mn) stsoo@ta.com.my (A) Total 5D MF Prv. Chg www.taonline.com.my (B) Cur. Chg CLOSING PRICE 12-Mar 13-Mar 14-Mar 15-Mar 16-Mar Chg (A+B) DMF 12-Mar 13-Mar 14-Mar 15-Mar 16-Mar FBMKLCI (5.5) (2.0) (36.8) 2.5 (6.5) (48.2) 39.3 (9.0) 1,861 1,864 1,857 1,845 1,846 1.12 IN AFFIN ABMB 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 EKOVEST GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS UMWOG WASEONG WCT 0.1 0.2 0.2 0.3 (4.3) 0.3 1.0 (1.2) 0.2 0.0 0.5 0.2 0.1 (7.8) (0.4) 0.0 1.1 6.1 0.4 0.8 (0.5) (0.5) (0.2) 0.0 0.0 1.4 0.0 0.2 0.0 0.0 (0.2) 0.0 (0.0) (0.0) (0.8) (0.0) (1.0) 0.3 (0.1) (0.0) (0.7) (0.3) 0.1 0.1 (0.7) 0.3 (3.7) (0.2) 0.9 1.7 0.1 6.6 0.2 0.8 (0.7) 0.8 (0.3) (0.1) (0.2) (1.4) (0.6) 0.3 (0.9) (0.4) 0.0 (0.0) (0.0) (4.6) 0.0 (0.0) 0.1 (0.0) (0.2) 0.0 0.0 (0.0) (0.6) 0.0 (1.0) 0.1 (0.2) (0.0) (0.1) (0.1) 0.0 (0.1) (0.2) (0.0) (0.3) 0.3 (0.5) (0.5) (1.0) 1.1 2.1 0.6 (0.3) (4.4) 0.1 (0.1) (1.8) (25.3) (0.8) (0.1) (1.6) 0.5 (0.0) 0.0 0.0 0.1 (0.0) 0.3 (0.1) 0.0 (0.2) 0.0 0.0 0.0 0.1 0.0 (0.5) 0.2 0.1 0.1 (0.2) 0.0 (0.0) (0.3) 0.6 0.2 (5.0) (0.2) (0.0) 0.7 (0.8) 0.6 (1.3) 0.2 (0.1) (5.9) (0.2) (0.4) 0.8 6.6 0.3 0.0 (0.7) (0.8) 0.1 (0.0) (0.1) (0.2) (0.0) 0.2 0.0 0.0 (0.2) (0.0) 0.0 (0.0) 0.0 0.0 (3.7) 0.5 (0.0) 0.2 (0.2) (0.1) 0.1 (0.0) (0.1) 1.0 (5.8) (0.1) 1.0 2.1 (0.2) (1.1) (0.4) 0.2 (0.2) (1.2) (0.1) 0.1 (0.2) (10.8) 0.3 (0.1) (0.7) (0.1) 0.4 (0.0) (0.1) 1.8 (0.0) (0.0) 0.0 0.0 (0.5) (0.0) (0.0) 0.0 (0.3) 0.0 (1.0) (0.1) (0.1) (0.0) 0.2 (0.0) 0.2 (0.2) (0.1) 1.6 (19.2) 0.1 2.4 2.8 (1.7) 7.1 1.2 2.1 (1.2) (18.5) (0.8) (0.5) (0.3) (24.9) (0.4) 0.9 (4.3) (1.2) 0.3 (0.0) (0.1) (1.5) (0.0) 0.5 0.1 0.0 (1.4) 0.0 (0.0) (0.0) (1.6) 0.0 (7.2) 1.0 (0.2) 0.2 (1.1) (0.4) (0.0) (0.2) 0.8 0.2 (4.7) (0.6) 0.5 1.1 0.1 (0.5) (3.4) (0.4) 0.2 (1.5) (0.3) (0.3) 2.6 31.9 1.1 0.2 0.9 (1.3) 0.1 (0.0) (0.1) (0.3) (0.0) (0.0) 0.1 0.0 (0.1) (0.0) 0.0 (0.0) (0.1) 0.0 (3.2) 0.3 (0.1) 0.1 0.0 (0.1) 0.1 0.3 (0.7) 0.8 (0.8) 0.2 1.1 1.5 0.7 (1.7) 0.9 (0.1) (0.1) 4.7 0.0 0.4 (1.0) (17.4) (0.1) (0.1) 0.0 0.7 0.4 (0.0) (0.0) 2.0 (0.0) (0.3) 0.0 0.0 (0.3) 0.0 (0.0) 0.0 (0.4) 0.0 2.6 (0.5) (0.0) (0.2) 0.4 0.1 2.43 4.30 4.07 5.45 7.27 4.75 5.05 8.99 5.30 6.09 4.85 0.90 5.98 10.44 1.19 5.31 2.64 15.62 5.73 3.56 4.08 0.40 0.85 0.34 4.25 2.64 1.12 1.00 0.99 1.61 1.39 2.10 0.94 0.79 1.04 1.00 0.47 2.15 1.00 1.53 0.31 1.39 2.50 4.30 4.19 5.45 7.25 4.75 5.00 8.92 5.23 6.09 4.87 0.88 5.89 10.44 1.17 5.35 2.65 15.62 5.71 3.61 4.00 0.39 0.84 0.34 4.17 2.66 1.10 0.98 0.98 1.60 1.39 2.10 0.94 0.76 1.03 0.97 0.45 2.15 1.00 1.50 0.31 1.35 2.44 4.30 4.08 5.40 7.24 4.71 5.00 9.05 5.27 6.08 4.86 0.87 5.75 10.44 1.17 5.39 2.65 15.64 5.57 3.53 4.16 0.42 0.83 0.34 4.17 2.77 1.10 0.96 0.95 1.60 1.40 2.10 0.94 0.76 1.01 0.97 0.41 2.20 1.00 1.60 0.30 1.32 2.45 4.14 4.07 5.20 7.22 4.65 5.00 8.90 5.35 6.06 4.68 0.87 5.64 10.36 1.19 5.25 2.62 15.66 5.59 3.64 4.10 0.42 0.84 0.34 4.18 2.73 1.10 0.98 0.94 1.60 1.43 2.10 0.94 0.74 1.01 0.99 0.49 2.14 1.00 1.63 0.32 1.34 2.47 4.32 4.12 5.32 7.22 4.54 5.04 8.95 5.24 6.09 4.58 0.87 5.77 10.32 1.17 5.37 2.70 15.68 5.60 3.52 4.15 0.41 0.82 0.33 4.10 2.78 1.12 1.00 0.94 1.61 1.43 2.10 0.95 0.74 1.00 1.01 0.48 2.11 1.00 1.62 0.31 1.37 0.02 0.18 0.05 0.12 0.00 (0.11) 0.04 0.05 (0.11) 0.03 (0.10) 0.01 0.13 (0.04) (0.02) 0.12 0.08 0.02 0.01 (0.12) 0.05 (0.01) (0.02) (0.01) (0.08) 0.05 0.02 0.03 0.00 0.01 0.00 0.00 0.01 0.00 (0.01) 0.02 (0.01) (0.03) 0.00 (0.01) (0.01) 0.03 IN IN IN IN OUT OUT IN IN IN OUT OUT OUT IN IN OUT IN IN IN IN IN IN OUT IN OUT OUT IN OUT OUT IN IN OUT OUT OUT OUT OUT IN OUT OUT OUT OUT IN OUT Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Page 3 of 4
25. 20-Mar-18 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo No Name 12-Mar Tel: +603-2167 9607 Total Money Flow (RM'mn) 13-Mar 14-Mar 15-Mar Total 16-Mar 5D MF stsoo@ta.com.my (A) (B) Prv. Chg Cur. Chg 12-Mar 13-Mar www.taonline.com.my CLOSING PRICE 14-Mar 15-Mar (A+B) 16-Mar Chg DMF FBMKLCI (5.5) (2.0) (36.8) 2.5 (6.5) (48.2) 39.3 (9.0) 1,861 1,864 1,857 1,845 1,846 1.12 IN 1 MAYBANK (7.8) 0.8 (4.4) (5.9) (1.2) (18.5) (1.5) 4.7 10.44 10.44 10.44 10.36 10.32 (0.04) IN 2 PBBANK 2.5 9.3 (2.5) 3.0 3.6 15.9 5.5 0.6 23.00 23.00 23.00 23.00 23.02 0.02 IN 3 TENAGA 6.1 (1.4) (25.3) 6.6 (10.8) (24.9) 31.9 (17.4) 15.62 15.62 15.64 15.66 15.68 0.02 IN 4 CIMB (4.3) (3.7) (0.3) (5.0) (5.8) (19.2) (4.7) (0.8) 7.27 7.25 7.24 7.22 7.22 0.00 OUT 5 PCHEM (1.4) (0.4) (0.4) 1.3 6.8 6.0 1.6 5.6 8.08 8.15 8.10 8.15 8.15 0.00 IN 6 IHH 0.0 6.6 1.1 0.6 (1.1) 7.1 (0.5) (1.7) 6.09 6.09 6.08 6.06 6.09 0.03 OUT 7 AXIATA 0.3 0.3 (0.0) 0.2 1.0 1.6 0.2 0.8 5.45 5.45 5.40 5.20 5.32 0.12 IN 8 MAXIS 0.1 (0.7) (0.3) (0.1) (0.2) (1.2) 0.2 (0.1) 5.98 5.89 5.75 5.64 5.77 0.13 IN 9 HLBANK 2.0 0.8 0.3 0.4 (1.4) 2.1 0.1 (1.7) 18.68 19.02 19.30 18.78 18.72 (0.06) OUT 10 SIME PLT (0.1) (2.0) (0.2) 0.1 2.8 0.5 0.3 2.7 5.56 5.60 5.56 5.52 5.48 (0.04) IN 11 DIGI 0.3 (0.2) 0.3 (0.2) (0.1) 0.1 (0.6) 0.2 4.75 4.75 4.71 4.65 4.54 (0.11) OUT 12 NESTLE 1.4 1.4 (4.4) (0.9) (6.2) (8.7) 3.5 (5.3) 150.50 157.40 141.00 131.00 131.00 0.00 OUT 13 PETGAS 0.4 2.6 (0.0) 2.4 0.8 6.1 2.4 (1.7) 17.80 17.90 17.90 18.00 18.00 0.00 IN 14 GENTING (1.2) 1.7 (0.5) 0.7 2.1 2.8 1.1 1.5 8.99 8.92 9.05 8.90 8.95 0.05 IN 15 MISC (0.1) 0.1 0.4 (0.0) 0.7 1.1 (0.4) 0.7 6.99 7.09 7.13 7.03 7.21 0.18 IN 16 IOI CORP 0.5 0.2 2.1 (1.3) (0.4) 1.2 (3.4) 0.9 4.85 4.87 4.86 4.68 4.58 (0.10) OUT 17 GENM 0.2 0.1 (1.0) (0.8) (0.2) (1.7) 0.1 0.7 5.30 5.23 5.27 5.35 5.24 (0.11) IN 18 KLK (2.1) (12.8) 1.9 (0.8) 1.2 (12.7) (2.6) 1.9 25.40 25.42 25.20 25.38 25.32 (0.06) OUT 19 PETDAG (0.3) 1.0 (0.4) 0.7 0.0 1.2 1.1 (0.7) 24.86 24.72 24.74 24.74 24.80 0.06 IN 20 HAP SENG 0.1 0.1 (0.1) 0.3 0.4 0.9 0.4 0.1 9.68 9.80 9.70 9.70 9.70 0.00 IN 21 HLFG (0.3) (0.1) 0.3 (0.0) 0.3 0.2 (0.4) 0.3 19.02 19.00 19.10 18.74 19.10 0.36 OUT 22 PPB (2.2) (2.6) 0.0 0.3 1.0 (3.5) 0.2 0.7 18.26 18.32 18.42 18.50 18.54 0.04 IN 23 TM 0.4 (0.6) (0.8) 0.3 0.3 (0.4) 1.1 (0.1) 5.73 5.71 5.57 5.59 5.60 0.01 IN 24 RHBBANK 0.0 (0.1) (0.1) (0.4) 0.1 (0.5) (0.3) 0.4 5.31 5.35 5.39 5.25 5.37 0.12 IN 25 PMETAL (1.3) (1.2) (0.5) (0.0) (0.1) (3.0) 0.5 (0.0) 5.00 4.97 5.00 4.99 4.95 (0.04) IN 26 SIME 1.1 (0.2) (1.8) 0.8 (0.2) (0.3) 2.6 (1.0) 2.64 2.65 2.65 2.62 2.70 0.08 IN 27 YTLCORP 0.0 (0.1) (0.0) (0.0) 0.1 (0.1) (0.0) 0.1 1.45 1.46 1.44 1.44 1.41 (0.03) IN 28 KLCCS 0.1 (0.1) (0.0) (0.1) (0.1) (0.2) (0.0) (0.1) 7.87 7.85 7.82 7.80 7.60 (0.20) OUT 29 AMBANK 0.2 (0.7) (0.2) 0.6 (0.1) (0.1) 0.8 (0.7) 4.07 4.19 4.08 4.07 4.12 0.05 IN 30 ASTRO (0.2) (0.0) (0.0) (0.1) 0.2 (0.1) (0.1) 0.2 2.38 2.36 2.33 2.35 2.34 (0.01) IN 15.1 (20.1) (5.0) 24.0 (24.1) (0.2) 6.4 (43.1) (36.7) 18.2 (15.6) 2.5 21.1 (27.6) (6.5) 84.8 (130.7) (45.9) 19 (11) 14 (16) 8 (22) 15 (15) 16 (14) (RM'mn) INFLOW OUTFLOW NET FLOW Daily Trading Participation COMPANIES INFLOW OUTFLOW Date Retail Institution Foreign Total 12-Mar 13-Mar 14-Mar 15-Mar 16-Mar 21.2% 21.3% 23.6% 21.9% 12.2% 55.3% 54.0% 56.0% 58.0% 38.5% 23.5% 24.7% 20.4% 20.1% 49.3% 100% 100% 100% 100% 100% Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, March 20, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
26. Technical View Tuesday , March 20, 2018 FBMKLCI: 1,847.94 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Stock Screen Malaysia End Day Census of 19.03.2018 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 Stock Name 1 PANASONIC MANUFACTURING MALA 2 LINGKARAN TRANS KOTA HLDGS Price RSI Lower Middle Upper 34.62 33.39 34.27 5.75 5.49 5.72 Vol 20-day avg vol 14-day 10-day 30-day 50-day 35.15 50.26 34.47 34.16 35.46 114,300 10,215 5.95 53.34 5.62 5.74 5.72 266,500 111,695 1,513,325 3 GEORGE KENT (MALAYSIA) BHD 4.33 3.99 4.25 4.52 60.81 4.26 4.11 3.97 1,778,200 4 FAR EAST HOLDINGS BHD 9.20 8.43 8.90 9.38 57.30 9.03 8.94 9.08 5,500 3,585 5 KHIND HOLDINGS BERHAD 1.91 1.71 1.87 2.04 49.14 1.81 1.95 2.05 10,200 4,985 30,850,330 6 NWP HOLDINGS BHD 0.28 0.03 0.20 0.38 64.78 0.27 0.17 0.15 32,962,100 7 BOUSTEAD HEAVY INDUSTRIES CO 1.91 1.77 1.88 1.99 52.55 1.84 1.95 1.92 8,800 4,985 8 BERMAZ AUTO BHD 2.22 1.96 2.13 2.29 58.19 2.09 2.14 2.20 3,006,400 2,340,485 9 GAMUDA BHD 3,864,200 5.05 4.92 5.02 5.11 53.33 5.03 4.99 5.04 4,319,900 10 ABM FUJIYA BHD 0.50 0.34 0.45 0.55 54.77 0.46 0.44 0.43 30,700 1,885 11 PECCA GROUP BHD 1.34 1.26 1.32 1.39 50.08 1.30 1.34 1.42 430,100 327,590 12 NEW HOONG FATT HOLDINGS BHD 3.33 3.25 3.31 3.37 51.91 3.32 3.32 3.33 7,000 6,065 13 MCT BHD 0.90 0.84 0.89 0.93 54.52 0.90 0.88 0.87 59,000 35,645 14 CAB CAKARAN CORP BHD 0.96 0.88 0.93 0.98 59.53 0.92 0.91 0.92 1,759,000 1,092,130 15 HOCK HENG STONE INDUSTRIES 0.53 0.29 0.42 0.55 64.11 0.45 0.43 0.44 227,800 88,170 16 DAIMAN DEVELOPMENT BHD 2.18 2.12 2.16 2.20 56.00 2.14 2.16 2.18 38,800 14,435 17 GRAND HOOVER BHD 0.77 0.49 0.64 0.79 59.19 0.63 0.67 0.70 235,400 48,820 18 CCK CONSOLIDATED HOLDINGS BH 1.36 1.15 1.27 1.38 63.89 1.26 1.21 1.17 3,530,800 1,459,630 19 BONIA CORP BHD 0.51 0.46 0.50 0.53 55.98 0.48 0.49 0.51 2,518,200 559,480 20 PROGRESSIVE IMPACT CORP BHD 0.19 0.08 0.14 0.21 67.62 0.16 0.13 0.13 19,896,100 5,657,170 21 ACME HOLDINGS BHD 0.34 0.30 0.33 0.36 52.84 0.32 0.33 0.35 16,000 4,100 22 ISKANDAR WATERFRONT CITY BHD 1.42 1.27 1.36 1.44 65.40 1.36 1.35 1.37 3,201,700 1,416,350 23 JMR CONGLOMERATION BHD 1.07 0.98 1.04 1.09 55.14 1.04 1.03 1.03 40,000 10,880 24 SOUTH MALAYSIA INDUSTRIES 0.22 0.18 0.21 0.23 57.47 0.21 0.20 0.20 747,300 426,265 25 HARRISONS HOLDINGS MALAYSIA 4.00 3.82 3.92 4.01 55.37 3.93 3.95 3.96 30,000 5,385 26 EASTLAND EQUITY BHD 0.22 0.09 0.16 0.23 69.11 0.18 0.15 0.15 32,829,800 3,850,470 27 ATURMAJU RESOURCES BHD 0.25 0.19 0.22 0.26 56.14 0.22 0.23 0.24 10,000 1,655 28 BERJAYA CORP BHD 0.35 0.31 0.33 0.36 55.83 0.33 0.33 0.34 25,320,800 15,377,430 29 XIN HWA HOLDINGS BHD 1.15 1.09 1.13 1.16 54.88 1.12 1.13 1.15 66,600 37,580 30 KENANGA INVESTMENT BANK BHD 0.61 0.57 0.59 0.62 57.37 0.59 0.60 0.60 329,600 123,145 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 medium-term 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
27. *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 Stock Name Price Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day Vol 20-day avg vol 1 MWE HOLDINGS BERHAD 1.62 1.13 1.33 1.53 82.03 1.33 1.31 1.32 2,885,700 2 MAGNI-TECH INDUSTRIES BHD 5.17 4.07 4.59 5.10 65.98 4.45 4.52 4.84 807,900 251,200 292,670 3 BORNEO AQUA HARVEST BHD 1.41 0.75 1.05 1.35 88.23 1.11 0.96 0.89 9,059,200 4,021,905 4 CLOUDARON GROUP BHD 0.35 0.16 0.23 0.30 74.32 0.25 0.23 NA 14,500 1,225 5 BRAHIM'S HOLDINGS BERHAD 0.45 0.21 0.31 0.42 67.19 0.28 0.33 0.38 39,669,700 1,689,915 6 WARISAN TC HOLDINGS BHD 2.15 1.94 2.03 2.12 81.60 2.05 2.02 2.01 20,100 1,440 7 SHANGRI-LA HOTELS (MAL) BHD 5.30 4.70 4.98 5.27 68.10 4.89 4.98 5.00 364,000 137,220 8 MCE HOLDINGS BHD 0.78 0.69 0.72 0.76 62.38 0.72 0.73 0.74 30,300 28,705 9 GOODWAY INTEGRATED INDUS BHD 0.24 0.18 0.21 0.23 63.25 0.20 0.21 0.21 1,532,600 60,845 10 PINEHILL PACIFIC BHD 0.22 0.17 0.19 0.21 57.92 0.19 0.20 0.20 586,200 37,560 11 KOMARKCORP BHD 0.22 0.17 0.19 0.21 62.64 0.19 0.19 0.20 5,946,600 602,860 12 TECHNODEX BHD 0.14 0.13 0.13 0.14 62.06 0.13 0.13 0.13 2,986,200 1,150,590 13 FRONTKEN CORP BHD 0.49 0.41 0.45 0.49 63.38 0.44 0.44 0.46 26,655,000 7,054,335 13,568,460 14 DIALOG GROUP BHD 2.80 2.57 2.69 2.80 61.74 2.67 2.67 2.66 15,968,500 15 SHIN YANG SHIPPING CORP BHD 0.25 0.22 0.23 0.25 61.62 0.23 0.23 0.23 597,400 362,545 16 ADVANCE SYNERGY BHD 0.17 0.10 0.13 0.17 69.60 0.14 0.13 0.14 11,040,100 7,792,245 205,645 17 SEG INTERNATIONAL BHD 0.66 0.65 0.65 0.66 53.92 0.65 0.65 0.65 173,700 18 WEIDA M BHD 2.29 2.25 2.27 2.29 73.47 2.27 2.26 2.13 21,300 154,085 19 KRETAM HOLDINGS BHD 0.86 0.84 0.85 0.86 75.86 0.85 0.81 0.73 2,175,600 4,964,560 20 NEXGRAM HOLDINGS BHD 0.05 0.03 0.04 0.05 68.95 0.04 0.04 0.04 22,557,900 22,383,500 Raw data sourced from Bloomberg *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. [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No Stock Name Price Bollinger Band RSI Moving Average Vol 20-day avg vol Lower Middle Upper 14-day 10-day 30-day 50-day 7.40 7.54 7.78 8.02 32.66 7.78 7.80 7.81 151,000 340,430 13.12 13.24 13.51 13.77 38.44 13.50 13.39 13.47 6,000 184,665 1 KLCCP STAPLED GROUP 2 AEON CREDIT SERVICE M BHD 3 MANULIFE HOLDINGS BHD 2.95 3.04 3.26 3.48 31.31 3.21 3.28 3.26 1,000 7,135 4 SERN KOU RESOURCES BHD 0.64 0.68 0.78 0.88 23.65 0.78 0.79 0.77 22,000 394,255 5 SASBADI HOLDINGS BHD 0.39 0.42 0.48 0.54 24.08 0.48 0.49 0.54 4,990,800 2,484,145 6 COASTAL CONTRACTS BHD 1.14 1.18 1.24 1.31 32.37 1.24 1.26 1.29 361,600 355,490 7 AMVERTON BHD 1.10 1.13 1.27 1.41 22.03 1.24 1.32 1.32 76,700 20,790 8 APEX EQUITY HOLDINGS BERHAD 1.06 1.09 1.41 1.72 24.22 1.35 1.45 1.52 139,400 308,750 9 VITROX CORP BHD 5.68 5.71 6.17 6.62 36.32 6.02 6.10 6.23 372,800 335,675 10 SYARIKAT TAKAFUL MALAYSIA 3.21 3.24 3.45 3.66 28.44 3.47 3.44 3.52 887,700 398,475 11 MSM MALAYSIA HOLDINGS BHD 3.56 3.59 3.88 4.17 27.35 3.83 3.97 3.95 11,000 8,960 12 HAI-O ENTERPRISE BHD 4.76 4.78 5.08 5.38 20.98 5.00 5.15 5.22 191,800 240,490 13 MALTON BHD 0.85 0.87 0.93 0.99 27.33 0.91 0.92 0.95 2,445,600 1,800,355 14 GHL SYSTEMS BERHAD 1.29 1.31 1.40 1.49 31.89 1.38 1.41 1.46 525,400 226,280 15 PIE INDUSTRIAL BHD 1.44 1.46 1.60 1.75 33.13 1.56 1.57 1.71 899,100 511,410 16 CENTRAL INDUSTRIAL CORP BHD 0.92 0.94 1.01 1.09 34.31 1.00 1.00 1.01 6,000 2,390 17 CYPARK RESOURCES BHD 2.56 2.58 2.60 2.62 36.70 2.60 2.60 2.62 19,700 295,500 18 TEO GUAN LEE CORP BHD 1.01 1.03 1.18 1.34 27.04 1.14 1.23 1.28 1,600 1,080 19 EUROSPAN HOLDINGS BERHAD 0.64 0.65 0.71 0.76 35.54 0.69 0.70 0.71 1,000 1,150 20 ENG KAH CORP BHD 1.10 1.12 1.27 1.42 26.06 1.21 1.30 1.36 600 660 Raw data sourced from Bloomberg S Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, March 20, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 2
28. Tuesday , 20 March, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only As i an Te ch n ic al R ep o r ts 1. Fore i gn Te ch n i ca l St o c k W at ch ( A US ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
29. Technical View Tuesday , March 20, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Australia ASX: 5,959.40 (+9.98, +0.17%) Chartist: Stephen Soo Name AS X 200 BHP BILLITON RIO TINTO COMMONW BK AUS TR WES TPAC BANKING AUST AND NZ BANK NATL AUS T BANK WES FARMERS WOODS IDE PETRO NEWCRES T MINING WES TFIE LD GROUP FORTES CUE METALS QBE INS URANCE ORIGIN ENERGY AMP S ANTOS MACQUARIE GROUP S UNCORP GROUP ORICA OIL S EARCH COCA-COLA AMATIL AMCOR S TOCKLAND ALUMINA COMPUTERS HARE QANTAS AIR WAYS S IMS METAL MGMT Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Close Bollinger Bands RSI Moving Averages DMI Change High Low 19-Mar Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff 5959.40 9.98 5982.50 5933.50 5878.55 5961.80 6045.06 49.00 5944.20 5934.40 5985.95 27.30 26.39 12.25 0.91 29.23 76.64 74.89 29.52 28.01 29.34 43.56 28.99 19.75 8.63 4.75 9.75 9.07 5.23 5.03 105.39 13.75 18.41 7.18 8.72 14.27 4.19 2.41 17.81 5.98 16.01 0.07 29.50 29.23 27.88 29.76 31.65 0.02 77.50 76.63 72.25 77.82 83.39 -0.45 75.98 74.89 73.94 75.78 77.62 0.00 29.71 29.38 29.47 30.30 31.12 -0.02 28.17 27.89 27.79 28.43 29.07 -0.17 29.71 29.22 29.23 29.92 30.61 -0.24 43.75 42.90 39.85 41.32 42.80 0.43 29.14 28.73 28.29 28.80 29.31 0.02 19.87 19.70 19.71 21.36 23.01 0.06 8.64 8.58 8.49 8.67 8.84 -0.03 4.81 4.73 4.52 4.95 5.38 -0.02 9.89 9.75 9.58 10.18 10.77 0.23 9.08 8.89 8.50 8.94 9.37 -0.02 5.28 5.22 5.17 5.31 5.45 0.14 5.04 4.93 4.80 4.99 5.19 0.49 105.98 105.14 100.93 103.84 106.75 0.12 13.87 13.67 13.16 13.62 14.07 0.11 18.59 18.29 17.86 18.54 19.21 0.11 7.23 7.11 6.89 7.30 7.72 -0.06 8.82 8.71 8.59 8.83 9.07 -0.07 14.45 14.15 13.85 14.13 14.41 0.04 4.20 4.14 3.97 4.06 4.15 0.06 2.41 2.33 2.21 2.30 2.39 0.03 17.85 17.57 17.34 17.79 18.25 0.05 6.01 5.91 5.29 5.75 6.21 0.15 16.10 15.83 15.28 16.50 17.72 45.52 28.96 29.85 47.93 75.35 78.05 42.86 76.10 75.88 34.29 30.03 30.33 42.56 28.35 28.26 45.29 30.00 29.56 68.26 41.23 41.19 37.60 28.77 29.90 28.74 20.90 21.67 40.82 8.63 8.70 41.97 4.76 5.01 33.51 9.92 10.27 48.42 8.76 8.87 46.61 5.34 5.27 43.88 4.92 4.98 54.88 104.70 103.19 49.89 13.80 13.49 44.92 18.45 18.52 36.85 7.12 7.35 52.62 8.87 8.66 52.50 14.19 14.20 56.38 4.08 4.03 53.58 2.33 2.30 56.08 17.67 17.42 62.57 5.90 5.55 42.03 15.97 16.47 30.25 78.38 77.60 30.65 28.42 29.48 42.30 31.36 22.20 8.90 5.06 10.42 9.07 5.24 5.12 102.96 13.56 18.65 7.54 8.52 14.41 4.14 2.37 17.04 5.39 16.75 29.89 23.07 23.51 19.11 16.99 23.01 42.05 17.43 15.74 13.48 15.99 13.19 22.94 21.36 23.03 26.07 25.63 23.95 17.21 24.92 20.52 29.02 25.99 28.19 32.68 20.66 38.03 32.61 33.05 35.34 33.16 33.00 16.45 29.69 43.31 33.23 27.13 27.03 28.76 26.62 28.83 26.31 25.29 27.03 29.86 21.78 19.64 18.72 20.67 23.75 12.94 31.46 15.02 (8.13) 25.24 (9.54) 14.81 (9.53) 17.27 (16.23) 17.77 (16.17) 17.48 (9.99) 22.65 25.60 26.01 (12.26) 24.68 (27.57) 34.86 (19.75) 24.18 (11.14) 34.05 (13.84) 14.30 (5.83) 14.48 (5.26) 12.61 (5.80) 10.18 (0.24) 17.03 0.34 15.61 (3.07) 22.54 (12.65) 26.18 3.13 20.04 0.88 15.89 10.30 13.40 5.32 13.44 4.44 36.26 19.74 20.62 (10.81) MACD Line Signal Diff -6.60 -6.78 0.184 -0.41 -0.94 -0.25 -0.24 -0.04 0.14 -0.09 -0.70 -0.60 -0.08 -0.10 -0.17 -0.08 0.02 -0.05 0.89 0.07 -0.03 -0.13 0.10 -0.04 0.00 0.00 0.18 0.17 -0.25 -0.31 -0.70 -0.38 -0.17 0.01 0.20 -0.34 -0.82 -0.42 -0.07 -0.08 -0.15 -0.08 0.03 -0.05 0.69 0.07 -0.04 -0.12 0.12 -0.09 -0.02 -0.01 0.23 0.17 -0.15 (0.095) (0.236) 0.136 (0.068) (0.048) (0.062) 0.253 0.120 (0.186) (0.004) (0.018) (0.012) (0.004) (0.014) (0.004) 0.197 0.005 0.010 (0.015) (0.023) 0.052 0.018 0.008 (0.044) 0.006 (0.108) DMI MACD Recent Signal BUY BUY SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL BUY BUY BUY BUY BUY BUY SELL SELL SELL BUY SELL SELL SELL BUY BUY SELL SELL SELL SELL SELL SELL SELL BUY BUY BUY SELL SELL BUY BUY BUY SELL BUY 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 two columns are auto generated. Page 1 of 3
30. 20-Mar-18 Corporate News : Stockland is selling its Woolworths-anchored neighborhood mall in its Highland community in Craigieburn with price expectations of about AUD40 million. – Bloomberg. Technical Comments: Bullish technical momentum should boost upside potential on Stockland shares towards the 61.8%FR (AUD4.57), with a confirmed breakout to challenge the 76.4%FR (AUD4.77), and the peak of 01/08/16 (AUD5.11) acting as stronger hurdle. Crucial support is found at the low of 14/10/15 (AUD3.71). STOCKLAND AUD4.19 (+0.04) BOLLINGER BANDS Upper Middle Lower AUD AUD AUD SIMPLE MOVING AVERAGES 4.16 4.07 3.98 10-day 30-day 50-day DMI Recent Signal AUD AUD AUD 4.08 4.03 4.13 DAILY MACD BUY Recent Signal BUY Page 2 of 3
31. 20-Mar-18 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 Stock Name Ticker BHP AU BHP BILLITON LTD RIO AU RIO TINTO LTD CBA AU COMMONW BK AUS TR WBC AU WE S TP AC BANKING ANZ AU AUS T AND NZ BANK NAB AU NATL AUS T BANK WE S AU WE S FARME RS LTD WP L AU WOODS IDE P E TRO NCM AU NE WCRE S T MINING WFD AU WE S TFIE LD GROUP FMG AU FORTE S CUE ME TALS QBE AU QBE INS URANCE ORG AU ORIGIN E NE RGY AMP AU AMP LTD S TO AU S ANTOS LTD MQG AU MACQUARIE GROUP S UN AU S UNCORP GROUP LT ORI AU ORICA LTD OS H AU OIL S E ARCH LTD CCL AU COCA-COLA AMATIL AMC AU AMCOR LTD S GP AU S TOCKLAND AWC AU ALUMINA LTD CP U AU COMP UTE RS HARE LT QAN AU QANTAS AIRWAYS S GM AU S IMS ME TAL MGMT Close Target Price % upside 29.23 76.64 74.89 29.52 28.01 29.34 43.56 28.99 19.75 8.63 4.75 9.75 9.07 5.23 5.03 105.39 13.75 18.41 7.18 8.72 14.27 4.19 2.41 17.81 5.98 16.01 30.48 80.05 80.28 33.39 30.57 32.40 42.89 33.34 21.80 9.58 5.47 11.07 9.69 5.45 5.18 105.02 14.04 17.67 7.93 8.50 15.39 4.53 2.40 16.43 6.55 16.37 4% 4% 7% 12% 8% 9% -2% 13% 9% 10% 13% 12% 6% 4% 3% 0% 2% -4% 9% -3% 7% 7% -1% -8% 9% 2% EPS ($) PER(x) Div Yield(%) 52week Price 2017 2018 2017 2018 2017 2018 High Low % Chg YTD 1.69 4.76 5.62 2.47 2.35 2.28 2.43 1.51 0.44 0.35 0.46 0.54 0.60 0.35 0.23 7.36 0.79 0.94 0.26 0.54 0.65 0.33 0.14 0.64 0.62 0.97 1.44 4.35 5.85 2.48 2.42 2.47 2.48 1.49 0.91 0.38 0.42 0.66 0.75 0.37 0.25 7.73 0.97 1.12 0.28 0.55 0.71 0.35 0.12 0.72 0.64 1.07 13.3 12.4 13.3 12.0 11.9 12.9 17.9 14.8 34.4 19.0 8.0 13.9 15.0 14.9 16.5 14.3 17.3 19.6 21.3 16.3 16.9 12.6 13.2 21.6 9.7 16.5 15.6 13.6 12.8 11.9 11.6 11.9 17.6 14.9 16.7 17.6 8.8 11.3 12.1 14.2 15.8 13.6 14.1 16.5 19.4 15.7 15.5 11.9 15.2 19.1 9.3 14.9 3.821 3.754 5.792 6.487 5.737 6.748 4.986 4.012 0.851 3.048 5.200 3.662 0.353 5.641 0.477 4.812 5.251 2.678 1.671 5.126 3.259 6.372 5.643 1.808 2.358 3.217 3.342 3.437 5.971 6.629 5.866 6.691 5.062 3.898 1.322 3.140 5.368 4.410 2.359 5.851 1.312 5.132 5.564 3.156 1.783 5.229 3.637 6.611 5.311 1.954 2.425 3.454 32.16 82.73 87.74 35.39 32.95 34.09 45.60 34.59 25.33 9.77 6.76 13.62 9.78 5.49 5.67 107.68 15.24 21.39 8.13 10.87 16.78 4.98 2.60 18.36 6.53 18.05 22.06 56.72 73.20 29.38 27.18 28.01 39.52 27.85 19.26 7.28 4.52 9.65 6.52 4.75 2.87 82.28 12.43 16.91 6.15 7.52 13.71 3.92 1.67 13.19 3.74 11.28 -1.15 1.09 -6.78 -5.84 -2.54 -0.78 -1.94 -11.39 -13.45 -9.06 -2.66 -8.71 -3.72 0.77 -7.71 5.78 -0.79 1.71 -7.83 2.47 -7.46 -6.47 -0.82 9.26 18.65 1.52 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 and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, March 20, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3