Bursa Malaysia Daily Market Report - 21 March

Transcription

1. Wednesday , 21 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 . A u t o m o t i ve S e c t o r : A T y p ic a l F e b ru a ry 2 . L o t t e C h e m ic a l T it a n H o l d in g B h d : R e c o v e ry in U t il iz a t io n 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 ) 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
2. Daily Market Commentary Wednesday , 21 March 2018 TA Research, e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (20.03.2018) (mil) Main Market 1,229.0 Warrants 295.5 ACE Market 428.1 Bond 4.1 ETF 0.7 LEAP 0.0 Total 1,957.4 Off Market 21.5 Volume +/-chg (RMmn) 50.1 1,956.4 5.2 52.4 -35.8 66.0 -3.5 0.7 0.2 0.8 0.00 0.0 2,076.4 -110.7 38.0 Value Value/ +/-chg Volume Up Down 399.2 1.59 204 412 9.4 0.18 49 180 -9.5 0.15 29 58 0.2 0.16 2 5 0.2 1.14 0 1 0.0 0.31 0 1 1.06 284 657 -320.1 1.77 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) 7.0 5.0 2.9 2.0 2.0 1.1 8.45 17.59 -167.09 4.00 0.46 0.13 -1.06 0.22 3.32 0.86 -8.56 3.53 24,727.27 7,364.30 7,061.27 21,380.97 2,485.52 31,549.93 3,513.31 1,799.84 6,243.58 3,290.64 1,872.33 5,936.38 116.36 20.06 18.34 -99.93 10.49 36.17 15.02 0.05 -45.99 11.39 4.28 -23.05 0.47 0.27 0.26 -0.47 0.42 0.11 0.43 0.00 -0.73 0.35 0.23 -0.39 0.03 6.68 -8.15 -6.08 0.73 5.45 3.24 2.63 -1.76 -0.50 -1.42 -2.12 0.33 1.60 7.20 0.91 0.03 0.46 Counter MAYBANK PBBANK TENAGA PCHEM IHH AXIATA MAXIS SIMEPLT DIGI PETGAS Mkt Cap. Chg (RM’mn) (RM) 112,447 90,822 89,296 65,520 51,085 49,679 45,926 38,085 35,921 35,498 0.02 0.40 0.06 0.04 0.15 0.14 0.12 0.10 0.02 0.08 News Bites Vol. (mn) 12.50 7.63 9.92 7.47 4.73 5.08 0.69 2.26 2.79 0.21 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. Investors' risk appetite will likely stay fragile given the weak buying momentum and bearish technicals, dampened further by political uncertainties in the US and the Federal Reserve's policy stance. Immediate resistance for the index 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. Immediate support remains at the 50-day moving average level now at 1,843, followed by the lower Bollinger band at 1,836, with stronger supports at 1,820, then 1,800. Any near-term rallies on Maybank towards the upper Bollinger band (RM10.57) or 27/2/18 high (RM10.58) should see profit-taking interest checking gains, while corrections should be cushioned by the lower band (RM10.21) and 50-day moving average (RM10.14). Similarly, RHBBank should meet profit-taking resistance on any strength towards the upper Bollinger band (RM5.47), with tougher hurdle from the 2/2/18 doubletop peak (RM5.61), while immediate support should come from the 76.4%FR (RM5.18), and then 200-day ma (RM5.10). Top 10 KLCI Movers Based on Mkt Cap. (RM) @ @ @ @ @ @ % YTD chg 1,856.39 13,054.39 15,591.04 1,848.00 Off Market MUIPROP SUNREIT KLCC DSONIC RSENA-WA TOMYPAK-WA % chg While blue chips recovered from earlier losses due to overnight Wall Street correction and closed slightly firmer Tuesday, weak risk sentiment saw the broader market close lower. The KLCI rose 8.45 points to settle at the day's high of 1,856.39, off an earlier low of 1,841.47, but losers swarmed gainers 657 to 284 on slow turnover of 1.95bn shares worth RM2.07bn. • Axiata Group Bhd's 83% subsidiary in Sri Lanka, Dialog Axiata PLC (Dialog), is taking up a 35% stake in Digital Reality (Private) Ltd or DRPL, which operates a data centre business in Sri Lanka. • PUC Bhd's wholly-owned subsidiary Founder Qube Sdn Bhd (FQ) and Advwhere Ltd has established a partnership, under which FQ gains the exclusive right from Advwhere to market the Cloudbreakr Technology in Malaysia, Indonesia and Singapore. • Mudajaya Group Bhd has obtained Islamic financing facilities worth RM90.0mn to part finance infrastructure contracts. • Crest Builder Holdings Bhd said its wholly-owned subsidiary Crest Builder Sdn Bhd has won an 18-month contract for construction works in Petaling Jaya worth RM117.8mn. • Tien Wah Press Holdings Bhd has terminated a joint venture agreement with Vietnamese company, Dong Nai Food Industrial Corp. • Pasukhas Group Bhd has bagged construction works worth a combined RM41.3mn from Paramount Property Construction Sdn Bhd for a hotel and serviced apartments in Shah Alam, Selangor. • KSL Holdings Bhd is acquiring nine more parcels of freehold land measuring 74.7 hectares in Johor Bahru for RM177.0mn. • China-based XingHe Holdings Bhd has entered into a joint venture agreement with My Ocean Venture Sdn Bhd and VC Marine Sdn Bhd to venture into the tuna and seafood processing business in Malaysia. • Jacobs Douwe Egberts Holdings Asia NL BV (JDE Asia) has received valid acceptances for 456.8mn OldTown Bhd shares, representing a 98.6% stake in the company. • Comintel Corp Bhd has declared a special dividend of 45 sen per share, to be paid on April 19, to reward shareholders following the sale of its wholly-owned unit, BCM Electronics Corp Sdn Bhd, for RM123.8mn. • Japan's leading index declined less than initially estimated in January. • House prices in Australia climbed 1.0% on quarter in the fourth quarter of 2017, the Australian Bureau of Statistics said. Separately, Australia's consumer confidence improved during the week ended March 18. • UK inflation fell by more than expected during February as the postreferendum fall in the pound on consumer prices began to drop out of the figures. • Germany's producer price inflation eased to a 14-month low in February, figures from Destatis showed. Exchange Rate USD/MYR 3.9185 0.001 USD/JPY 106.40 0.250 EUR/USD 1.231 0.0019 Commodities Futures Palm Oil (RM/mt) 2,439.00 12.00 Crude Oil ($/Barrel) 63.42 1.26 Gold ($/tr.oz.) 1,310.90 -5.80 Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. 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. Wednesday , March 21, 2018 FBMKLCI: 1,856.39 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 Dampener From US Politics and Fed Policy While blue chips recovered from earlier losses due to overnight Wall Street correction and closed slightly firmer Tuesday, weak risk sentiment saw the broader market close lower. The KLCI rose 8.45 points to settle at the day’s high of 1,856.39, off an earlier low of 1,841.47, but losers swarmed gainers 657 to 284 on slow turnover of 1.95bn shares worth RM2.07bn. Resistance at 1,864/1,872; Support at 1,843/1,836 Investors’ risk appetite will likely stay fragile given the weak buying momentum and bearish technicals, dampened further by political uncertainties in the US and the Federal Reserve’s policy stance. Immediate resistance for the index 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. Immediate support remains at the 50-day moving average level now at 1,843, followed by the lower Bollinger band at 1,836, with stronger supports at 1,820, then 1,800. Take Profit Maybank & RHBBank Any near-term rallies on Maybank towards the upper Bollinger band (RM10.57) or 27/2/18 high (RM10.58) should see profit-taking interest checking gains, while corrections should be cushioned by the lower band (RM10.21) and 50-day moving average (RM10.14). Similarly, RHBBank should meet profit-taking resistance on any strength towards the upper Bollinger band (RM5.47), with tougher hurdle from the 2/2/18 double-top peak (RM5.61), while immediate support should come from the 76.4%FR (RM5.18), and then 200-day ma (RM5.10). Asian Stocks Mixed Despite Wall Street Slump Asian markets closed mixed on Tuesday, as investors digested the overnight pullback on Wall Street and awaited the Federal Reserve's two-day policy meeting. In Tokyo, the Nikkei 225 shed 0.47 percent, or 99.93 points, to close at 21,380.97, tracking declines seen stateside, but paring some of the more than 200-point losses seen earlier. Tuesday's move lower also marked the third straight decline for the benchmark, extending its decline in the last session on the back of an ongoing political scandal that's hurting public support for Prime Minister Shinzo Abe. The broader Topix index edged lower by 0.21 percent as banks, trading houses and automakers notched gains. Elsewhere, Seoul's benchmark Kospi reversed losses to close up 0.42 percent at 2,485.52. Heavyweight tech names were mixed following the slump in tech names stateside overnight, with Samsung Electronics rising 0.91 percent. Among major sectors, automakers and manufacturing names also recorded gains. The Hang Seng Index ended slightly higher as gains in technology and consumer goods names were partially offset by losses in financials. On the mainland, the Shanghai composite edged up 0.34 percent to close at 3,290.46 and the Shenzhen composite added 0.23 percent to end at 1,872.33. Meanwhile, Sydney's S&P/ASX 200 slipped by 0.39 percent to end at 5,936.40. Losses were led by the 1.35 percent fall in materials stocks. The heavily weighted financials subindex held just above the flat line, adding 0.05 percent. Ahead, markets are focused on a two-day Federal Open Market Committee policy meeting that begins on Tuesday U.S. time. The Federal Reserve is expected to hike interest rates for the first time in 2018 at the end of that meeting. Page 1 of 7
4. 21-Mar-18 Wall Street Gets A Lift From Energy Sector U .S. stocks advanced modestly on Tuesday as higher oil prices lifted the energy sector, but another slump in Facebook Inc shares curbed gains. The energy sector helped push stocks into positive territory after oil prices settled at the highest levels of the month. Concerns that growing tensions between Iran and Saudi Arabia, along with expectations for declining Venezuela crude production, could have a negative shock on supply helped lift oil futures. Those gains helped the S&P energy index rise 0.84 percent, making it easily the best performing of the 11 major S&P 500 sectors. But tech stocks extended a slide as Facebook’s shares continued their slide after reports the social media company faced questions from the U.S. Federal Trade Commission about how its users’ personal data was mined by a political consultancy hired by President Donald Trump’s campaign. Those losses in turn weighed on other social-media stocks and on the technology sector, which has been the best-performing group this year. Market participants also were anticipating the Federal Reserve’s two-day policy meeting, which started in the early afternoon. Investors are watching for signs that the central bank will take a more aggressive path toward normalizing monetary policy. The Dow Jones Industrial Average rose 116.36 points, or 0.47 percent, to 24,727.27, the S&P 500 gained 4.02 points, or 0.15 percent, to 2,716.94 and the Nasdaq Composite added 20.06 points, or 0.27 percent, to 7,364.30. Page 2 of 7
5. 21-Mar-18 N e w s I n B r i e f Corporate Axiata Group Bhd ’s 83% subsidiary in Sri Lanka, Dialog Axiata PLC (Dialog), is taking up a 35% stake in Digital Reality (Private) Ltd or DRPL, which operates a data centre business in Sri Lanka. Dialog, which is making the investment via its unit Dialog Broadband Networks (Private) Ltd, has the option to raise its stake and obtain control of DRPL, between the third and fifth year after the acquisition. (The Edge Markets / Bursa Malaysia) McDermott, a US-based company providing integrated engineering, procurement, construction and installation services for offshore and subsea field developments, expects to win some of Petroliam Nasional Bhd's (Petronas) projects. McDermott Asia Pacific Sdn Bhd's Commercial Senior Director for Asia, Mahesh Swaminathan, said the national oil and gas company had recently said it would invest in projects worth RM55.0bn. (Bernama) PUC Bhd's wholly-owned subsidiary Founder Qube Sdn Bhd (FQ) and Advwhere Ltd has established a partnership, under which FQ gains the exclusive right from Advwhere to market the Cloudbreakr Technology in Malaysia, Indonesia and Singapore to media partners and advertisers. PUC said the collaboration will add value to the company by widening the range of media spaces that FQ can offer to its advertisers, as FQ will now be able to offer to its advertisers and potential media partners, an additional option of advertising and promotion through the Cloudbreakr Technology. (The Edge Markets / Bursa Malaysia) Mudajaya Group Bhd has obtained Islamic financing facilities worth RM90.0mn to part finance infrastructure contracts its subsidiary Mudajaya Corp Bhd will secure from the government, statutory bodies, government agencies or government-linked companies (GLCs). The facilities will also be used for tender, performance bond and advance payment guarantee favouring the government or GLCs. (The Edge Markets / Bursa Malaysia) Crest Builder Holdings Bhd said its wholly-owned subsidiary Crest Builder Sdn Bhd has won an 18-month contract for construction works in Petaling Jaya worth RM117.8mn. (The Edge Markets / Bursa Malaysia) Tien Wah Press Holdings Bhd has terminated a joint venture agreement with Vietnamese company, Dong Nai Food Industrial Corp, as the latter’s failure to deliver a set volume of printed tobacco packaging had caused losses in the partners’ joint venture company. (The Edge Markets / Bursa Malaysia) Pasukhas Group Bhd has bagged construction works worth a combined RM41.3mn from Paramount Property Construction Sdn Bhd for a hotel and serviced apartments in Shah Alam, Selangor. The project includes a five-storey car park, a 14-level block of serviced apartments of 389 units, a 14-level block of hotel with 240 rooms and a taxi stand with roofing. (The Edge Markets / Bursa Malaysia) KSL Holdings Bhd is acquiring nine more parcels of freehold land measuring 74.7 hectares in Johor Bahru for RM177.0mn — just eight days after it proposed to buy two parcels of leasehold land measuring 47.7 hectares in the district for RM133.6mn — to enlarge its landbank. (The Edge Markets / Bursa Malaysia) China-based XingHe Holdings Bhd has entered into a joint venture agreement with My Ocean Venture Sdn Bhd and VC Marine Sdn Bhd to venture into the tuna and seafood processing business in Malaysia. (The Edge Markets) Jacobs Douwe Egberts Holdings Asia NL BV (JDE Asia) has received valid acceptances for 456.8mn OldTown Bhd shares, representing a 98.6% stake in the company, following the Page 3 of 7
6. 21-Mar-18 closing of its offer today . OldTown said the offeror will compulsorily acquire the remaining shares as provided for by the Capital Markets and Services Act 2007, as it intends to privatise and delist OldTown. (The Edge Markets) Comintel Corp Bhd has declared a special dividend of 45 sen per share, to be paid on April 19, to reward shareholders following the sale of its wholly-owned unit, BCM Electronics Corp Sdn Bhd, for RM123.8mn. (The Edge Markets / Bursa Malaysia) Berjaya Media Bhd’s net loss narrowed 46% to RM2.5mn in the third quarter ended Jan 31, 2018 (3QFY18), from RM4.5mn a year ago, on the absence of impairment loss on publishing rights during the quarter. Last year, the group booked a RM1.5mn impairment loss. Quarterly revenue, however, fell 23% year-on-year to RM8.3mn from RM10.7mn, due to lower advertising income by its principal operating subsidiary, Sun Media Corp Sdn Bhd. (The Edge Markets / Bursa Malaysia) Page 4 of 7
7. 21-Mar-18 N e w s I n B r i e f Economy Asia Japan Leading Index Falls Less than Estimated Japan 's leading index declined less than initially estimated in January, latest figures from the Cabinet Office showed Tuesday. The leading index, which measures the future economic activity, dropped to a 6-month low of 105.6 in January from 106.8 in December. The reading was above the flash estimate of 104.8. The coincident index that reflects the current economic activity fell to 114.9 in January from 119.7 in the previous month. The January figure was revised up from 114.0. The lagging index came in a 119.4 in January versus 118.9 in the preceding month. (RTT) Australia Q4 House Prices Advance 1.0% House prices in Australia climbed 1.0% on quarter in the fourth quarter of 2017, the Australian Bureau of Statistics said. That exceeded expectations for a flat reading following the 0.2% decline in the third quarter. On a yearly basis, house prices jumped 5.0% - again beating forecasts for 3.9% following the 8.3% spike in the three months prior. The capital city residential property price indexes rose in Melbourne (+2.6%), Perth (+1.1%), Brisbane (+0.9%), Hobart (+3.9%), Canberra (+1.7%) and Adelaide (+0.6%) and fell in Sydney (-0.1%) and Darwin (-1.5%). Annually, residential property prices rose in Hobart (+13.1%), Melbourne (+10.2%), Canberra (+5.7%), Sydney (+3.8%), Adelaide (+3.6%) and Brisbane (+2.1%) and fell in Darwin (-6.3%) and Perth (-1.7%). Separately, Australia’s consumer confidence improved during the week ended March 18, a weekly survey compiled by the ANZ bank and Roy Morgan Research showed. The consumer confidence index rose 2.2% to 118.5 from 116.0 in the preceding week. After declining in the previous two weeks, household sentiment towards current and financial conditions strengthened notably during the week. (RTT) Europe and Uni ted Kingdom Europe’s Pitch to Trump: You Already Have a Good Trade Deal The European Union’s top trade official arrives in Washington Tuesday with a daunting task: convince the Trump administration that, contrary to White House claims, the bloc’s economic relationship with the U.S. is fair. In two days of meetings, EU Trade Commissioner Cecilia Malmstrom will press counterparts including Commerce Secretary Wilbur Ross to exempt the bloc from President Donald Trump’s steel and aluminum tariffs, which are set to take effect Friday. Mr. Trump invoked a threat to national security to justify the tariffs, leaving the EU aghast, given that 22 of the bloc’s 28 members are also North Atlantic Treaty Organization allies of the U.S. EU officials are urging the White House to consider both significant trans-Atlantic economic links and risks the duties could pose to the broader alliance that shaped the postwar global order. The EU is also calling on the U.S. to jointly tackle China’s market-distorting policies instead of punishing partners world-wide. “What we want to do is to clear up this mess,” Ms. Malmstrom told the European Parliament last week. “We don’t want a trade war.” The U.S. and the EU together account for nearly half of global economic output—and each is the other’s top trading partner. Annual trade in goods and services tops $1 trillion, while bilateral foreign-direct investment stands at $5 trillion annually. Average tariffs of 5.2% in the EU and 3.5% in the U.S. are among the lowest globally—compared with an average of about 9% among the World Trade Organization’s 164 members. “If the president thinks the EU is unfair, then boy, is everyone else even more unfair,” said Peter Chase, a former U.S. diplomat who is now a Brussels-based fellow at the German Marshall Fund. “The trans-Atlantic relationship is completely unique in that it is an evenly balanced, investment-based relationship—it’s not just trade-based.” (The Wall Street Journal) Page 5 of 7
8. 21-Mar-18 UK Consumer Inflation Rate Eases to 2 .7% in February UK inflation fell by more than expected during February as the post-referendum fall in the pound on consumer prices began to drop out of the figures. Prices were 2.7% higher during the month than they were a year ago, according to data published by the Office for National Statistics. Analysts expected a reading of 2.8% from 3% in January. In February 2017 the rate of inflation jumped by 0.5 percentage points to 2.3% during the month. This increase reduced the annual change in February 2018, due to a so-called base effect. “The largest downward contributions to the change in the rate came from transport and food prices, which rose by less than a year ago,” the ONS wrote. “The rise between January and February 2017 came amidst reports of shortages of certain greens and salad vegetables from adverse weather in southern Europe.” The ONS is not the first major statistics agency to cite the lingering impact of the lettuce shortage of 2017; German inflation has also been slightly depressed as a result. The bigger than expected fall in inflation raises questions over whether the Bank of England will push ahead with a widely-expected increase in interest rates at the May meeting of the monetary policy committee. Services inflation, as measured by the CPI sub-index, fell to 2.4% from 2.8%, suggesting the UK economy is not generating domestic inflation to replace the effects of higher import prices. The annual change in the retail price index, which is used for some inflation-linked bonds and other contracts, fell to 3.6% in February from 4% in January. (Financial Times) Germany's Producer Price Inflation at 14-Month Low Germany's producer price inflation eased to a 14-month low in February, figures from Destatis showed. Producer prices climbed 1.8% year-on-year in February, slower than the 2.1% increase seen in January. This was the lowest rate since December 2016 and weaker than the expected 2%. Excluding energy, producer prices advanced 0.1% on month taking the annual growth to 1.9% in February. On a monthly basis, producer prices dropped for the first time in nine months in February. Prices fell 0.1%, in contrast to January's 0.5% increase. Prices were expected to gain 0.1%. The price indices of all main industrial groups increased in February compared with the previous year. Prices of intermediate goods gained 2.8%. Energy prices were up 1.8% though the development of prices of the different energy carriers diverged. Non-durable consumer goods prices and durable consumer goods prices increased 1.4% each. At the same time, cost of capital goods advanced 1.1%. (RTT) Page 6 of 7
9. 21-Mar-18 Share Buy-Back : 20 March 2018 Company AJIYA AMPROP ASTINO E&O FIMACOR FITTERS GLOMAC HAIO KFIMA KSL MALAKOF MMSV NYLEX PANTECH SNTORIA SUNWAY SYSCORP UNIMECH YILAI Bought Back Price (RM) Hi/Lo (RM) 87,300 30,000 45,000 60,000 5,000 705,100 89,600 48,900 47,400 300,000 1,878,400 125,000 10,000 95,500 178,500 1,050,000 220,000 9,000 100,000 0.51 0.71 0.88/ 0.875 1.43 2.00 0.40 0.48/0.47 4.72/4.59 1.48/1.47 1.00 0.875/0.865 1.43/1.38 0.79/0.785 0.57 0.65/0.63 1.56/1.53 0.25/0.245 1.00/0.98 0.75/0.72 0.51 0.71/ 0.705 0.905/ 0.875 1.43/ 1.41 2.00 0.40/0.395 0.48/0.47 4.78/4.58 1.48/1.46 1.01/0.995 0.875/0.865 1.43/1.37 0.79/0.785 0.57/0.565 0.65/0.625 1.57/1.52 0.25/0.245 1.04/0.98 0.72 Total Treasury Shares 4,815,300 16,571,000 1,138,837 26,648,747 4,357,000 36,750,000 6,821,300 9,038,288 200,300 17,230,200 47,196,900 2,509,500 6,303,324 2,286,624 5,692,100 35,070,262 2,371,100 7,412,010 9,733,408 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 7 of 7
10. 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 20-Mar-18 AUTOMOBILE BAUTO 2.23 2.33 4.5% Buy 2,584 0.52 12.1 19.0 18.4 11.7 4.9 5.2 2.47 -9.7 1.84 21.2 1.4 MBMR 2.46 2.68 8.9% Hold 962 0.70 24.7 26.9 10.0 9.2 2.4 2.8 2.60 -5.4 2.01 22.4 11.8 PECCA 1.30 1.62 24.6% Buy 240 0.47 9.7 10.9 13.4 11.9 3.8 3.8 1.70 -23.5 1.25 4.0 -16.1 SIME 2.60 2.55 -1.9% Sell 17,682 1.63 13.2 16.4 19.7 15.9 1.3 1.6 3.06 -15.0 2.03 28.3 17.6 UMW 6.25 5.52 -11.7% Sell 7,302 1.46 28.6 40.2 21.8 15.5 2.2 3.2 6.98 -10.5 4.70 33.0 20.2 BANKS & FINANCIAL SERVICES ABMB 4.33 4.60 6.2% Buy 6,703 1.19 32.6 35.8 13.3 12.1 3.7 3.7 4.49 -3.6 3.62 19.6 6.1 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 4.14 4.70 13.5% Buy 12,479 1.42 38.1 44.4 10.9 9.3 4.3 4.3 5.70 -27.4 3.92 5.6 -6.1 CIMB 7.20 8.60 19.4% Buy 66,424 1.64 58.2 59.9 12.4 12.0 4.0 4.2 7.39 -2.6 5.32 35.3 10.1 HLBANK 18.70 19.30 3.2% Hold 38,253 0.85 116.8 126.8 16.0 14.7 2.6 2.6 20.02 -6.6 13.44 39.1 10.0 MAYBANK 10.34 11.50 11.2% Buy 112,447 1.00 74.1 78.3 14.0 13.2 5.3 5.3 10.58 -2.3 8.89 16.3 5.5 PBBANK 23.52 27.30 16.1% Buy 90,822 0.70 153.3 166.5 15.3 14.1 2.5 2.6 23.52 0.0 19.82 18.7 13.2 RHBBANK 5.32 6.10 14.7% Buy 21,333 1.50 54.3 59.0 9.8 9.0 2.8 2.8 5.61 -5.2 4.71 13.0 6.4 BURSA 11.02 11.80 7.1% Buy 5,923 0.89 43.9 45.0 25.1 24.5 3.3 3.3 11.48 -4.0 9.30 18.5 8.9 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 BUILDING MATERIALS ANNJOO 3.28 4.34 32.3% Buy 1,699 1.32 43.7 46.6 7.5 7.0 6.6 7.5 3.98 -17.6 2.27 44.5 -15.0 CHINHIN 1.08 1.39 28.7% Buy 601 1.00 11.4 11.1 9.5 9.7 5.9 5.2 1.49 -27.5 1.00 8.5 -10.7 ENGTEX 1.06 1.38 30.2% Buy 451 0.83 14.2 16.1 7.5 6.6 2.0 2.9 1.52 -30.3 1.01 5.0 -3.6 GADANG 0.92 1.69 84.7% Buy 605 1.14 14.2 18.1 6.4 5.0 3.3 3.3 1.37 -33.2 0.92 0.0 -17.6 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 2.63 2.96 12.5% Hold 9,541 1.20 13.7 18.6 19.2 14.1 3.6 3.6 3.61 -27.1 2.55 3.1 -13.8 CONSTRUCTION KAB 0.26 0.38 44.2% Buy 8 na 31.4 37.3 0.8 0.7 3.8 4.6 0.33 -21.2 0.25 6.1 -13.3 PESONA 0.36 0.46 27.8% Buy 250 1.17 5.0 4.5 7.3 7.9 4.2 4.2 0.74 -51.0 0.36 0.0 -20.0 -19.7 SENDAI 0.70 0.55 -20.9% Sell 543 1.26 9.1 8.5 7.7 8.2 1.4 1.4 1.39 -50.0 0.64 9.4 SUNCON 2.13 2.65 24.4% Hold 2,752 0.64 14.7 16.4 14.5 13.0 3.8 4.2 2.64 -19.3 1.72 23.8 -15.1 WCT 1.30 1.50 15.4% Sell 1,829 0.99 11.3 10.8 11.5 12.0 2.3 2.3 2.48 -47.5 1.30 0.0 -19.8 LITRAK 5.77 6.26 8.5% Hold 3,046 0.32 45.6 47.1 12.6 12.3 4.3 4.3 6.15 -6.2 5.40 6.9 4.0 CARLSBG 18.58 18.09 -2.6% Buy 5,716 0.73 87.8 91.8 21.2 20.2 4.6 4.8 21.00 -11.5 14.36 29.4 21.4 HEIM 20.58 21.64 5.2% Hold 6,217 0.41 93.0 101.6 22.1 20.3 3.7 3.9 23.04 -10.7 16.98 21.2 8.9 AEON 1.80 1.97 9.4% Buy 2,527 0.18 7.5 8.9 23.9 20.2 2.5 2.8 2.52 -28.6 1.45 24.1 2.3 AMWAY 7.50 8.59 14.5% Buy 1,233 0.49 48.3 49.9 15.5 15.0 5.3 5.5 8.10 -7.4 6.97 7.6 2.7 F&N 31.38 33.74 7.5% Buy 11,502 0.25 122.7 145.8 25.6 21.5 2.5 3.0 34.50 -9.0 23.40 34.1 16.2 CONSUMER Brewery Retail HUPSENG 1.06 1.25 17.9% Buy 848 0.41 5.7 5.9 18.6 17.9 5.7 5.7 1.28 -17.2 1.03 2.9 -2.8 JOHOTIN 1.02 1.48 45.1% Buy 317 1.01 11.1 11.7 9.2 8.7 5.9 6.4 1.76 -42.0 1.00 2.0 -15.7 NESTLE 127.90 129.90 1.6% Hold 29,993 0.44 322.2 360.2 39.7 35.5 2.3 2.5 163.00 -21.5 77.54 64.9 23.9 PADINI 4.56 4.67 2.4% Sell 3,000 0.82 28.0 30.4 16.3 15.0 2.7 2.9 5.50 -17.1 2.86 59.6 -13.6 -27.4 POHUAT 1.30 1.78 36.9% Buy 286 0.59 20.1 23.1 6.5 5.6 4.6 6.2 2.07 -37.2 1.28 1.6 QL 4.92 5.41 10.0% Hold 7,982 0.59 12.8 14.7 38.4 33.4 0.9 1.0 5.05 -2.6 3.47 41.8 13.1 SIGN 0.59 0.92 55.9% Buy 135 0.61 6.9 9.2 8.5 6.4 4.2 5.9 1.07 -44.9 0.57 3.5 -16.3 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 5.20 6.68 28.5% Buy 29,390 1.44 27.6 32.0 18.9 16.3 2.3 2.5 6.28 -17.2 4.80 8.5 -6.2 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 2.85 3.40 19.3% Buy 795 0.91 16.2 17.4 17.6 16.4 3.8 3.9 3.05 -6.6 1.97 44.7 12.6 IHH 6.20 6.40 3.2% Sell 51,086 0.74 11.9 15.0 52.2 41.5 0.5 0.6 6.33 -2.1 5.42 14.4 5.8 KPJ 0.91 1.13 24.9% Buy 3,814 0.57 3.9 4.4 23.1 20.8 2.4 2.7 1.14 -20.6 0.87 4.0 -6.7 HARTA 11.66 7.80 -33.1% Sell 19,309 1.14 25.2 28.8 46.3 40.4 1.3 1.5 12.18 -4.3 4.82 141.9 9.2 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 2.66 2.70 1.5% Buy 1,744 0.62 20.0 22.6 13.3 11.8 2.0 2.3 2.92 -8.9 1.69 57.4 33.0 TOPGLOV 9.72 12.20 25.5% Buy 12,208 0.69 35.3 42.7 27.5 22.8 1.5 1.8 10.24 -5.1 4.56 113.2 21.7 KAREX 0.80 0.93 17.0% Sell 797 0.86 1.8 3.0 44.9 26.2 0.6 1.0 2.26 -64.8 0.79 1.3 -38.8 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 1.67 2.20 31.7% Buy 2,088 0.92 10.4 14.8 16.1 11.3 3.1 4.4 2.35 -28.9 1.24 34.7 -26.8 ASTRO 2.16 3.10 43.5% Buy 11,262 0.86 14.0 13.7 15.5 15.8 6.0 6.3 2.94 -26.5 2.14 0.9 -18.5 MEDIA PRIMA 0.45 0.45 0.0% Sell 499 1.32 -3.8 -1.7 na na 0.0 0.0 1.28 -64.8 0.42 8.4 -40.8 STAR 1.25 1.20 -4.0% Sell 922 1.06 6.2 5.9 20.1 21.1 7.2 7.2 2.22 -43.6 1.24 0.8 -24.2 INDUSTRIAL MEDIA
11. 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 PER (X) Div Yield (%) FY19 FY18 FY19 FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.44 0.69 56.8% Buy 773 1.67 4.0 4.3 11.1 10.2 2.3 2.3 0.69 -36.2 0.39 14.3 -9.3 LCTITAN 6.26 7.60 21.4% Buy 14,229 na 56.3 60.9 11.1 10.3 4.0 4.3 6.53 -4.1 4.14 51.2 33.2 MHB 0.74 0.81 9.5% Sell 1,184 1.49 0.5 1.7 154.1 44.4 0.0 0.0 1.16 -36.2 0.63 18.4 -10.3 MISC 7.30 7.00 -4.1% Sell 32,586 1.15 50.1 53.8 14.6 13.6 4.1 4.1 7.90 -7.6 6.73 8.5 -1.6 PANTECH 0.57 0.69 22.1% Buy 421 1.27 6.1 6.8 9.3 8.3 4.9 5.4 0.74 -23.6 0.52 9.7 -12.4 PCHEM 8.19 8.84 7.9% Hold 65,520 0.84 52.5 53.8 15.6 15.2 3.2 3.2 8.29 -1.2 6.80 20.4 6.4 SAPNRG 0.49 1.25 157.7% Buy 2,906 2.06 -6.5 -5.0 na na 0.0 0.0 2.10 -76.9 0.40 22.8 -31.7 SERBADK 3.42 4.15 21.3% Buy 5,022 na 27.7 31.5 12.4 10.8 2.6 2.9 3.68 -7.1 1.63 109.8 5.6 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 1.76 1.98 12.5% Sell 6,421 1.65 3.5 4.4 51.0 40.4 2.8 2.8 2.18 -19.3 1.51 16.6 4.1 IJMPLNT 2.29 2.25 -1.7% Sell 2,017 0.18 6.7 10.8 33.9 21.2 3.5 3.9 3.23 -29.1 2.20 4.1 -16.4 IOICORP 4.66 5.08 9.0% Buy 28,455 0.88 20.9 21.6 22.3 21.5 6.3 3.7 4.76 -2.1 4.21 10.8 5.2 KFIMA 1.48 1.89 27.7% Buy 417 0.68 14.1 14.7 10.5 10.1 6.1 6.1 1.96 -24.5 1.45 2.1 -5.7 KLK 25.40 27.07 6.6% Hold 27,050 0.64 120.7 125.7 21.0 20.2 2.4 2.4 25.78 -1.5 23.66 7.4 1.6 SIMEPLT 5.60 6.25 11.6% Buy 38,085 na 21.0 22.1 26.6 25.4 2.5 2.7 6.00 -6.7 4.58 22.3 -6.7 TSH 1.52 1.97 29.6% Buy 2,099 0.49 9.3 9.6 16.3 15.8 1.6 1.6 1.90 -20.0 1.52 0.0 -7.9 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 5.91 5.7 -4.0 GLOMAC 0.47 0.40 -14.9% Sell 373 0.76 1.5 2.5 31.1 19.0 4.3 4.3 0.67 -29.7 0.46 2.2 -15.2 HUAYANG 0.51 0.58 13.7% Sell 180 0.86 0.7 3.4 76.9 15.0 1.0 1.0 1.16 -56.0 0.51 0.0 -16.4 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 1.68 2.00 19.0% Sell 9,250 0.85 16.3 15.7 10.3 10.7 3.6 3.6 2.22 -24.3 1.66 1.2 -9.2 MAHSING 1.00 1.59 59.0% Buy 2,428 0.93 11.8 11.3 8.5 8.9 6.5 6.5 1.64 -39.0 1.00 0.5 -31.0 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 0.64 0.76 18.8% Buy 360 0.13 8.3 8.6 7.7 7.5 1.6 1.6 0.91 -29.6 0.56 14.3 -7.9 SPB 4.52 5.10 12.8% Hold 1,553 0.60 18.7 24.0 24.1 18.8 2.7 2.7 5.50 -17.8 4.39 3.0 -7.8 SPSETIA 3.19 3.73 16.9% Buy 11,973 0.94 19.8 19.4 16.1 16.4 3.8 3.8 4.38 -27.2 3.07 3.9 -20.3 SUNWAY 1.54 1.75 13.6% Hold 7,523 0.90 11.8 12.4 13.0 12.4 3.9 3.9 1.96 -21.4 1.35 14.1 -5.5 SUNREIT 1.58 1.87 18.4% Hold 4,653 0.87 10.0 10.7 15.8 14.8 6.3 6.8 1.90 -16.8 1.57 0.6 -16.8 CMMT 0.99 1.48 50.3% Buy 2,007 0.77 7.8 8.3 12.6 11.9 8.2 8.7 1.83 -46.2 0.98 0.5 -46.2 PLANTATIONS PROPERTY REIT POWER & UTILITIES MALAKOF 0.88 0.82 -6.3% Sell 4,335 0.99 6.6 7.2 13.2 12.1 8.0 8.0 1.30 -32.7 0.86 2.3 -10.7 PETDAG 24.84 24.08 -3.1% Sell 24,677 0.48 114.7 116.3 21.7 21.4 3.5 3.5 25.97 -4.3 20.81 19.4 3.3 PETGAS 17.94 19.46 8.5% Buy 35,498 0.86 99.3 100.0 18.1 17.9 3.8 3.9 20.08 -10.7 15.82 13.4 2.6 TENAGA 15.76 18.22 15.6% Buy 89,296 0.59 131.3 127.5 12.0 12.4 4.1 4.0 16.12 -2.2 13.54 16.4 3.3 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 5.49 6.50 18.4% Buy 49,679 1.56 15.9 19.4 34.4 28.2 1.5 2.9 5.82 -5.7 4.54 20.9 0.0 DIGI 4.62 5.15 11.5% Hold 35,921 0.98 19.7 20.4 23.5 22.7 4.3 4.4 5.19 -11.0 4.36 6.0 -9.4 MAXIS 5.88 6.05 2.9% Sell 45,926 1.10 25.2 25.0 23.3 23.5 3.4 3.4 6.60 -10.9 5.48 7.3 -2.2 TM 5.46 7.20 31.9% Buy 20,518 0.69 22.8 24.9 23.9 22.0 3.8 4.1 6.69 -18.4 5.45 0.2 -13.3 ELSOFT 2.50 3.30 32.0% Buy 688 0.89 13.1 15.0 19.1 16.7 3.7 4.2 2.95 -15.3 1.71 46.2 -7.4 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 2.98 3.65 22.5% Buy 6,181 0.75 13.7 15.3 21.7 19.5 3.3 3.7 3.82 -22.0 1.89 58.0 -12.4 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 8.97 10.70 19.3% Buy 1,784 0.89 73.9 86.9 12.1 10.3 3.6 3.6 14.52 -38.2 8.42 6.5 -28.9 UNISEM 2.60 2.70 3.8% Sell 1,908 1.14 19.0 20.3 13.7 12.8 4.6 4.6 4.25 -38.8 2.49 4.4 -28.8 TRANSPORTATION Airlines AIRASIA 4.11 4.93 20.0% Hold 13,735 1.13 49.3 49.3 8.3 8.3 1.9 1.9 4.75 -13.5 2.77 48.4 22.7 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 73.6% Buy 336 na 2.3 3.8 11.3 7.0 2.6 4.2 0.38 -30.6 0.19 38.8 -5.4 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 1.05 1.9 -20.1 WPRTS 3.56 4.06 14.0% Buy 12,140 0.46 15.6 20.0 22.8 17.8 1.1 1.4 4.19 -15.0 3.12 14.1 -3.8 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 28.32 30.50 7.7% Buy 72,609 1.11 212.3 246.0 13.3 11.5 2.3 2.5 29.7 -4.7 18.47 53.3 OCBC 13.37 14.30 7.0% Buy 55,946 1.20 109.5 123.2 12.2 10.8 6.7 7.7 13.6 -1.8 9.45 41.5 14.0 7.9 UOB 28.30 27.80 -1.8% Hold 47,027 1.17 216.6 244.0 13.1 13.1 2.8 2.8 29.0 -2.4 21.38 32.4 7.0 PLANTATIONS WILMAR 3.20 3.31 3.4% Hold 20,475 0.82 27.4 29.3 11.7 10.9 3.1 3.4 3.9 -17.3 2.97 7.7 3.6 IFAR 0.32 0.36 12.5% Hold 459 1.05 3.8 4.1 8.4 7.8 1.6 1.8 0.5 -40.2 0.32 0.0 -17.9 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.
12. SECTOR UPDATE Wednesday , March 21, 2018 FBMKLCI: 1,856.39 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Underweight Automotive Sector (Maintained) A Typical February Abel Goon Tel: +603-2072 1277 ext. 1641 abelgoon@ta.com.my www.taonline.com.my Trough Month for TIV Total Industry Volume (TIV) in February came in within expectations at 40.6k units (MoM: 9.0%, YoY: -4.4%). The MoM drop is in-line with the historical trend as February is a shorter working month. We expect TIV in March to rebound given the longer working month. Note that TIV normally troughs in the month of February as most dealerships close in conjunction with Chinese New Year festivities. YTD TIV of 85.1k units (-2.3%) accounts for 14.5% and 14.4% of ours and MAA’s full-year forecast respectively. National Market Share Supported by Perodua National marques maintained its impressive passenger segment market share of 56.7% YTD (YTD FY17: 55.7%). However, we note that the gain in market share was mainly attributable to Perodua which gained 6.4 ppts versus Proton losing 5.5 ppts. This is unsurprising as Perodua and Proton are seen as direct competitors. Furthermore, Perodua recently launched its new 3rd Gen Myvi in November 2017, which garnered many positive reviews. On the other hand, Proton has not launched any new model since the Proton Iriz in June 2017. Premium Non-nationals Still Resilient The 4 premium non-national brands, i.e. BMW (MoM: -3.0%, YoY: +25.4%), Mercedes (MoM: -1.3%, YoY: +32.4%), Mazda (MoM: -21.9%, YoY: +120.9%) and Volkswagen (MoM: -1.4%, YoY: +52.7%) registered YoY growth despite a MoM decline in sales. In our opinion, BMW and Mercedes’ aggressive marketing campaigns, and Mazda’s new CX-5 drove the better sales. On the other hand, mass market non-national marques, i.e. Toyota (MoM: +13.4%, YoY: -20.4%), Nissan (MoM: -38.0%, YoY: -37.2%) and Honda (MoM: -14.0%, YoY: -9.1%) posted YoY declines. We believe Toyota and Nissan suffered from a lack of new model launches, whilst Honda’s decline is due to a slight cooling off after achieving record high sales in 2017. First Time Car Buyer Incentives Resurfaces Both PAS and Pakatan Harapan have touted excise tax exemptions for first car buyers in their election manifestos. We note that this is not the first-time similar incentives have been proposed. To recap, in 2014, Khairy Jamaluddin proposed a Youth First Vehicle Scheme where young people earning under RM4k would be allowed to purchase their first car taxfree. Thus, we do not discount the possibility of Barisan Nasional also offering a similar scheme. Although a first-time car buyer scheme is positive for the sector in the near term, we believe TIV will normalise after the initial surge (if no timeframe is specified), whilst a sharp drop in TIV will be realised after the programme ends (if a timeframe is specified). Maintain Underweight We maintain our Underweight stance on the industry and our TIV forecast of 589k units (+2.1%) in FY18. Our forecast reflects a slight recovery in TIV as we anticipate consumer sentiment to improve this year. On the other hand, TIV growth will be dampened by sustained stringent HP loan requirements. We maintain Buy on Pecca (TP: RM1.62) and BAuto (TP: RM2.33), due to handsome dividends and earnings growth. Meanwhile, we downgrade MBM (TP: RM2.68) to Hold, as we believe it is now fairly valued after the recent 10% appreciation in share price. On the other hand, Sime Darby (TP: RM2.55) and UMW (TP: RM5.52) are rated as Sell due to stretched valuations. Page 1 of 6
13. 21-Mar-18 Figure 1 : Breakdown of TIV Passenger Commercial TIV Feb-17 38,877 3,578 42,455 Jan-18 39,982 4,593 44,575 Feb-18 % MoM 36,623 (8.4) 3,955 (13.9) 40,578 (9.0) % YoY (5.8) 10.5 (4.4) 2MFY17 79,172 7,950 87,122 2MFY18 76,605 8,548 85,153 % YoY (3.2) 7.5 (2.3) % YoY 2MFY17 2MFY18 % YoY Source: MAA, TA Research Figure 2: Breakdown of TIV by segments Passenger vehicles National Perodua Proton Total Feb-17 Jan-18 Feb-18 % MoM 16,603 6,099 22,702 17,693 4,783 22,476 17,137 3,857 20,994 (3.1) (19.4) (6.6) 3.2 (36.8) (7.5) 30,806 13,306 44,112 34,830 8,640 43,470 13.1 (35.1) (1.5) Non-national BMW Mercedes Honda Nissan Toyota Mazda VW Others Total 650 896 7,695 1,416 3,274 449 275 1,520 16,175 840 1,202 8,133 1,434 2,299 1,270 426 1,902 17,506 815 1,186 6,998 889 2,607 992 420 1,722 15,629 (3.0) (1.3) (14.0) (38.0) 13.4 (21.9) (1.4) (9.5) (10.7) 25.4 32.4 (9.1) (37.2) (20.4) 120.9 52.7 13.3 (3.4) 1,288 1,808 16,289 2,577 7,715 1,238 602 3,543 35,060 1,655 2,388 15,131 2,323 4,906 2,262 846 3,624 33,135 28.5 32.1 (7.1) (9.9) (36.4) 82.7 40.5 2.3 (5.5) Grand Total 38,877 39,982 36,623 (8.4) (5.8) 79,172 76,605 (3.2) Commercial vehicles Hino Isuzu Mitsubishi Nissan Toyota Mazda Others Total Feb-17 126 682 427 392 1,256 11 684 3,578 Jan-18 555 737 684 574 1,265 30 748 4,593 Feb-18 % MoM 210 (62.2) 654 (11.3) 545 (20.3) 413 (28.0) 1,354 7.0 22 (26.7) 757 1.2 3,955 (13.9) % YoY 66.7 (4.1) 27.6 5.4 7.8 100.0 10.7 10.5 2MFY17 426 1,425 1,101 786 2,626 26 1,560 7,950 2MFY18 765 1,391 1,229 987 2,619 52 1,505 8,548 % YoY 79.6 (2.4) 11.6 25.6 (0.3) 100.0 (3.5) 7.5 Source: MAA, TA Research Figure 3: Breakdown by main manufacturers/distributors UMW Toyota (Passenger cars) Lexus Toyota (Commercial) Total Perodua Grand total Feb-17 3,274 51 1,256 4,581 16,603 21,184 Jan-18 2,299 20 1,265 3,584 17,693 21,277 Feb-18 % MoM 2,607 13.4 42 110.0 1,354 7.0 4,003 11.7 17,137 (3.1) 21,140 (0.6) % YoY (20.4) (17.6) 7.8 (12.6) 3.2 (0.2) 2MFY17 7,715 118 2,626 10,459 30,806 41,265 2MFY18 4,906 62 2,619 7,587 34,830 42,417 % YoY (36.4) (47.5) (0.3) (27.5) 13.1 2.8 Tan Chong Nissan (Passenger cars) Renault Nissan (Commercial) Total Feb-17 1,416 22 392 1,830 Jan-18 1,434 59 574 2,067 Feb-18 % MoM 889 (38.0) 34 (42.4) 413 (28.0) 1,336 (35.4) % YoY (37.2) 54.5 5.4 (27.0) 2MFY17 2,577 73 786 3,436 2MFY18 2,323 93 987 3,403 % YoY (9.9) 27.4 25.6 (1.0) Bermaz Auto Mazda (Passenger cars) Mazda (Commercial) Total Feb-17 449 11 460 Jan-18 1,270 30 1,300 Feb-18 % MoM 992 (21.9) 22 (26.7) 1,014 (22.0) % YoY 120.9 100.0 120.4 2MFY17 1,238 26 1,264 2MFY18 2,262 52 2,314 % YoY 82.7 100.0 83.1 MBM Resources VW Volvo Mitsubishi Hino Daihatsu Total Feb-17 275 76 427 126 56 960 Jan-18 426 69 684 555 56 1,790 Feb-18 % MoM 420 (1.4) 62 (10.1) 545 (20.3) 210 (62.2) 29 (48.2) 1,266 (29.3) % YoY 52.7 (18.4) 27.6 66.7 (48.2) 31.9 2MFY17 602 102 1,101 426 97 2,328 2MFY18 846 131 1,229 765 85 3,056 % YoY 40.5 28.4 11.6 79.6 (12.4) 31.3 Source: MAA, TA Research Page 2 of 6
14. Jan-11 Jul-12 Jan-14 Mar-15 Jul-17 Jan-18 Sep-17 May-17 Jan-17 Sep-16 May-16 Jan-16 Sep-15 May-15 Jan-15 Jan-18 Oct-17 Jul-17 Apr-17 Jan-17 Oct-16 Jul-16 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Oct-14 Jul-14 Apr-14 Jan-14 YoY Growth (RHS) Jan-18 Nov-17 Sep-17 Others May-17 Mar-17 Jan-17 Nov-16 Sep-16 Honda Jul-16 May-16 Mar-16 Jan-16 Nov-15 Nissan Sep-15 Jul-15 May-15 Toyota Jan-15 Sep-14 National Nov-14 May-14 Jan-14 Oct-13 TIV (LHS) Sep-14 Jul-14 May-14 Perodua Mar-14 Sep-13 Jul-13 Apr-13 unit Nov-13 May-13 Jan-13 Oct-12 Jul-12 Apr-12 Jan-12 Oct-11 Jul-11 Apr-11 Jan-11 80,000 Sep-13 Jul-13 May-13 Jan-13 Sep-12 May-12 Jan-12 Sep-11 May-11 Jan-11 70% Mar-13 Proton Jan-13 Nov-12 Sep-12 % May-12 45 Mar-12 Jan-12 Nov-11 Sep-11 Jul-11 May-11 Mar-11 21-Mar-18 Figure 4: TIV vs. YoY growth 40% 70,000 30% 60,000 20% 50,000 10% 40,000 0% 30,000 -10% 20,000 -20% 10,000 -30% 0 -40% Source: MAA, TA Research Figure 5: Passenger Vehicle Market Share (National vs. non-national manufacturers) 75% Non-National 65% 60% 55% 50% 45% 40% 35% 30% Source: MAA, TA Research Figure 6: Total Market Share by Brand Mazda 40 35 30 25 20 15 10 5 0 Source: MAA, TA Research Page 3 of 6
15. 21-Mar-18 Figure 7 : TIV (MoM change) Jan + + - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Feb + + - Mar + + + + + + + + + + + + + *+ : increase, - : decrease Apr + - May + + + + + + + + + Jun + + + + + + + + + - Jul + + + + + + + + - Aug + + + + + + + Sep + + + - Oct + + + + + + + + Nov + + + + + + + Dec + + + + + + + + + + Hari Raya Month Source: MAA, TA Research Figure 8: Cumulative Sales Volume (YoY growth) 2M17 1M18 12M17 29% -33% -39% 9% 150,000 13% Perodua 25% -1% 100,000 -35% -34% Proton 250,000 200,000 -27% Toyota 2H 300,000 19% -2% Nissan 1H 350,000 -7% -5% Honda Figure 9: TIV On Half Year Basis (unit) 50,000 -2% -60% -40% -20% 0% 20% 0 40% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: MAA, TA Research Source: MAA, TA Research Figure 10: Monthly Sales Volume by Brand (unit) Figure 11: Market share (%) Feb-18 % 20,000 18,000 45 40 16,000 18.1 18.2 17.2 1.1 2.9 2.5 5 4.3 4.5 3.2 15 10.7 8.0 9.8 20 14.4 10.7 9.5 5,260 7,094 6,309 7,695 8,133 6,998 25 10 460 1,300 1,014 2,000 1,808 2,008 1,302 4,530 3,564 3,961 4,000 6,099 4,783 3,857 6,000 Feb-18 30 12,000 8,000 Jan-18 35 14,000 10,000 Feb-17 39.1 39.7 42.2 Jan-18 16,603 17,693 17,137 Feb-17 0 0 Proton Perodua Source: MAA, TA Research Toyota Nissan Honda Mazda Others Proton Perodua Toyota Nissan Honda Mazda Source: MAA, TA Research Page 4 of 6
16. 21-Mar-18 Figure 12 : YTD Sales Volume Breakdown by Brand (unit) 2MFY18 35,000 2MFY18 40.9 45 35.4 40,000 2MFY17 % 30,806 34,830 2MFY17 Figure 13: YTD Market Share (%) 40 35 30,000 30 13.5 15.7 18.7 17.8 15.3 10.1 16,289 15,131 11,753 13,403 15 3.9 3.9 10 5 1.5 2.7 5,000 11.9 8.8 10,000 20 1,264 2,314 15,000 25 3,363 3,310 20,000 10,341 7,525 13,306 8,640 25,000 0 0 Proton Perodua Toyota Nissan Honda Mazda Proton Others Perodua Toyota Nissan Honda Mazda Others Source: MAA, TA Research Source: MAA, TA Research Figure 14: National vs. Non-national (Sales Volume) Figure 15: National vs. Non-national (Market share) Non-National National Source: MAA, TA Research Sep-17 Jan-18 Jan-17 May-17 Jan-16 May-16 Sep-16 Jan-11 May-11 Feb-18 Sep-17 Apr-17 Nov-16 Jan-16 Jun-16 Aug-15 Mar-15 Oct-14 May-14 Dec-13 Jul-13 Feb-13 Sep-12 Apr-12 Nov-11 Jan-11 15,000 Jan-15 May-15 Sep-15 20,000 May-14 Sep-14 25,000 May-13 Sep-13 Jan-14 30,000 Sep-12 Jan-13 35,000 Jun-11 Non-National 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 40,000 Sep-11 Jan-12 May-12 National 45,000 Source: MAA, TA Research Figure 20: Peers Comparison Price Tgt.Price (RM) (RM) BAuto 2.17 2.33 MBM Resources 2.46 2.68 Pecca 1.30 1.62 Company Mkt Cap Upside (RM mn) (%) Buy 2,514.5 Hold 961.6 Buy 244.4 Call PE (x) PB(x) Dividend Yield (%) ROE (%) CY18 CY19 CY18 CY19 CY18 CY19 CY18 CY19 7.4 13.0 10.2 4.2 3.5 5.2 5.9 32.3 33.8 8.9 10.0 9.2 0.6 0.5 1.2 2.4 5.5 5.7 24.6 12.9 11.4 1.4 1.3 3.8 4.2 10.7 11.3 SDB 2.60 2.55 Sell 17,682.1 (1.9) 17.6 15.3 1.1 1.0 1.4 1.6 6.3 6.8 UMW 6.25 5.52 Sell 7,301.8 (11.7) 30.2 16.9 1.4 1.3 0.0 1.6 4.8 7.8 16.7 12.6 1.7 1.5 2.9 3.2 11.9 13.1 Average Page 5 of 6
17. 21-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 ) Sector Recommendation Guideline OVERWEIGHT: The industry, as per our coverage universe, is expected to outperform the FBMKLCI over the next 12 months. NEUTRAL: The industry, as per our coverage universe, is expected to perform in line with the FBMKLCI over the next 12 months. UNDERWEIGHT: The industry, as per our coverage universe, is expected to underperform the FBMKLCI over the next 12 months. Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Wednesday, March 21, 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 6 of 6
18. COMPANY UPDATE Wednesday , March 21, 2018 FBMKLCI: 1,856.39 Sector: Oil & Gas THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM7.60 (+21.5%) Lotte Chemical Titan Holding Bhd Last Traded: RM6.26 Recovery in Utilization Kylie Chan Sze Zan BUY Tel: +603-2167 9601 kyliechan@ta.com.my Following our visit to Lotte Chemical Titan Holding’s (TTNP) manufacturing facilities at Johor, we emerge feeling sanguine on FY18 earnings. This is mainly underpinned by a spike in plant utilization to 90% (FY17: 76%) following the completion of statutory cracker turnarounds, and stable operations post-1H17 water supply interruption. Additionally, the resilient demand, coupled with higher product prices are expected to boost product spreads in FY18. On the back of this, we upgrade our TP for TTNP to RM7.60, which translates to 8.5x FY18 EV/EBITDA (previous: 7x), and implies a discount to Asian peers’ average of 10x. Maintain Buy. Multiyear capacity expansion plans, handsome dividend yield (FY18E: 4%), and a strong balance sheet are sweeteners. 90% Utilization Guidance for FY18. According to management, the average plant utilization rate (PU) in FY18 is expected to be higher at 90%, increasing from a lackluster 73% in FY17. The stronger PU is mainly underpinned by completion of statutory turnaround (TA) activities for both crackers (NC1 and NC2) in FY17. Accordingly, utilization for all crackers (including FNC) is expected to spike up to 95% in FY18 (FY17: 76%). Additionally, reliability and efficiency at NC1 & NC2 is enhanced following refurbishment and replacement of aged machinery and equipment. This includes acquisition of 5 units of new turbines and upgrade of existing transformer units. Accordingly, FY18 maintenance capex is expected to normalize to RM100mn (circa 2%-3% of annual revenue), from a whooping RM400mn in FY17. New Cracker Extension Ramping-Up. The recovery in PU in FY18 is in spite of a drag from Indonesian plants, and gradual ramp-up of TE3. Nevertheless, the latter is currently operating at healthy levels of 75%-80%. Recall that TE3 (capacity: 218 ktpa), which has now been renamed to FNC (Fluidized Naphtha Cracker), was commissioned recently in Dec-17. The facility is integrated with NC2 (Naphtha Cracker 2) and is based on new technology, namely catalytic olefins cracking. On the flipside, given the complexity of the new technology, management is cautious that challenges may prop-up during the process of ramping up FNC. Keeping Indonesian Production Low. On the other hand, TTNP’s Indonesian polyethylene (PE) plants are currently operating at low levels of 60%. The intentional production scale down is underpinned by sustained weakness in product spreads, as ethylene prices remain high. Accordingly, the group has increased sales of upstream ethylene volumes from its Malaysian plants, given more attractive spreads. In turn, this has reduced supply of ethylene feedstock for downstream Indonesian plants. Nevertheless, to mitigate customer base attrition, the Malaysian plants have been supplying PE products to TTNP’s Indonesian clients. Furthermore, despite current low PU levels, the Indonesian plants are able to breakeven or derive marginal profits. However, the converse is true if utilization levels increase, due to expensive external feedstock cost. www.taonline.com.my Share Information Bloomberg Code TTNP MK Stock Code 5284 Listing Main Market Share Cap (mn) 2,273 Market Cap (RMmn) 14,683 52-wk Hi/Lo (RM) 6.53/4.14 12-mth Avg Daily Vol ('000 shrs) 4,051.0 Estimated Free Float (%) 26.0 Beta Major Shareholders (%) n.a. Lotte Group - 74% Forecast Revision (%) FY18 Forecast Revision (%) FY19 0 0 Core Net Profit (RM mn) 1,280.3 1,384.0 Consensus 1,299.3 1,436.6 98.5 96.3 TA/Consensus (%) Previous Rating Buy (Maintained) Financial Indicators Net Debt/Equity (x) FY18 FY19 Net Cash Net Cash ROA (%) 9.3 9.3 ROE (%) 10.4 10.5 NTA/Share (RM) 6.2 6.6 P/NTA (x) 1.0 0.9 Share Performance Price Change (%) TTNP FBMKLCI 1 mth 19.2 (0.1) 3 mth 34.3 6.0 6 mth 19.2 4.7 n.a. 5.8 12 mth (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 4
19. 21-Mar-18 Expansion Plans On Track . TTNP’s pipeline capacity expansion plans remain on-track, starting with PP3 (Polypropylene 3). The latter is slated for completion in 2H18, with likely startup by the end of 3Q18. PP3, with a capacity of 200 ktpa has currently reached 67.6% mechanical completion. Meanwhile, the group's US shale cracker and MEG facility has reached 67.9% and 74.6% mechanical completion respectively. Lastly, for Lotte Indonesia New Ethylene complex (LINE), studies for Front End Engineering Design (FEED) and Environmental Impact Assessment are currently underway. The Final Investment Decision (FID) for this project is targeted by end-18. On a bright note, we understand that upcoming Indonesian tax reforms may potentially boost returns for this project, which has an attractive project IRR hurdle rate of 15%. The Indonesian government may potentially allow 100% investment tax incentives, with unlimited time frame for recognition. Maintain Buy. Recovery in TTNP’s utilization rates, and continued strength in product prices are rerating catalysts, in our view. Furthermore, operations have shown sustainable recovery since 1H17’s water supply interruption incident. Therefore, we believe that TTNP should be re-rated closer to its Asian peers’ average valuation of 10x FY18 EV/EBITDA. Currently, the stock is merely trading at 5.3x FY18 EV/EBITDA, despite multi-year capacity expansion plans, a strong balance sheet, and attractive dividend yields (FY18E: 4%). As such, we upgrade our TP for TTNP to RM7.60 (previous: RM6.10), which implies 8.5x FY18 EV/EBITDA (previous: 7x). Maintain Buy. [ TH E RE M A IN DE R OF T H IS P A GE IS IN TE N TI O NA L L Y L E F T BL AN K] Page 2 of 4
20. 21-Mar-18 Earnings Summary Income Statement Balance Sheet FYE 31 Dec (RMmn) 2016 2017 2018E 2019F 2020F Revenue 8,136.6 7,824.3 8,818.8 9,420.1 9,861.3 EBITDA 2,196.8 1,594.6 1,995.4 2,109.4 2,190.5 Depreciation (398.4) Net finance cost Share of Associates Exceptionals Pretax Profit (434.5) (463.2) (539.9) (587.1) (7.2) 45.1 59.4 30.4 17.1 (5.3) (35.8) (32.2) 127.9 179.2 (75.7) (28.8) 0.0 0.0 0.0 1,559.4 1,727.9 1,799.7 1,710.2 Taxation (394.1) (0.7) 1,140.6 (77.0) (280.7) (345.6) (359.9) 2016 2017 2018E 2019F 2020F PPE FYE 31 Dec (RMmn) 4,378.8 5,339.4 6,376.3 7,411.4 8,478.1 Associates & JCEs 1,552.1 2,054.1 2,021.9 2,149.8 2,328.9 47.8 52.5 52.5 52.5 52.5 5,978.7 7,446.0 8,450.7 Others Non-Current Assets Inventories 1,147.1 1,153.5 1,228.7 1,220.0 1,222.6 Trade and other Rcvb 1,143.3 927.7 1,030.5 1,073.1 1,028.0 Cash and Deposits 1,040.3 2,374.2 1,822.5 1,682.2 1,534.9 31.0 1,296.6 1,296.6 1,296.6 1,296.6 Current Assets 3,361.7 5,752.0 5,378.3 5,272.0 5,082.2 Total Assets 9,340.5 13,198.1 13,828.9 14,885.7 15,941.7 1.3 1.6 1.7 1.8 1,315.4 1,064.9 1,280.3 1,384.0 1,441.5 1,391.1 1,093.7 1,280.3 1,384.0 1,441.5 (sen) 60.3 55.0 64.4 69.7 72.6 Deferred Tax DPS (sen) 0.0 23.0 25.0 27.0 29.0 Others Book Value (RM) 3.5 5.8 6.2 6.6 7.1 Net Tang Asset (RM) 3.5 5.8 6.2 6.6 7.1 MI Net Profit Core Net Profit Per Share Data Others Borrowings Core EPS Non-current Liabilities Borrowings Ratios Trade & other Payables FYE 31 Dec 2016 2017 2018E 2019F 2020F Valuations 9,613.7 10,859.5 Others Current Liabilities 0.0 0.0 0.0 180.0 315.0 364.4 367.6 367.6 367.6 367.6 340.9 410.8 410.8 410.8 410.8 705.3 778.4 778.4 958.4 1,093.4 75.4 0.0 0.0 20.0 35.0 590.2 859.9 724.2 752.2 795.1 0.2 1.4 1.4 1.4 1.4 665.7 861.3 725.6 773.6 831.4 1,371.1 1,639.7 1,504.0 1,732.0 1,924.9 Core PER (x) 10.4 11.4 9.7 9.0 8.6 Dividend yield (%) 0.0 3.7 4.0 4.3 4.6 EV/EBITDA (x) 6.1 6.3 5.3 5.2 5.1 P/BV (x) 1.8 1.1 1.0 0.9 0.9 Share capital 1,727.8 5,816.8 5,816.8 5,816.8 5,816.8 P/NTA (x) 1.8 1.1 1.0 0.9 0.9 Reserves 2,237.9 1,086.8 1,086.8 1,086.8 1,086.8 FCFE Yield (%) 3.2 1.6 (0.3) 3.3 3.5 Retained Earnings 3,981.7 4,856.1 5,624.2 6,454.7 7,319.6 Minority Interests 22.0 25.0 23.4 21.7 19.9 Profitability ratios EBITDA margin (%) 27.0 20.4 22.6 22.4 22.2 EBIT margin (%) 22.1 14.8 17.4 16.7 16.3 PBT margin (%) 21.0 14.6 17.7 18.3 18.3 Total Liabilities Equity 7,969.4 11,558.4 12,325.0 13,153.7 14,016.8 Total Equity + Liabilities 9,340.5 13,198.1 13,828.9 14,885.7 15,941.7 Core Net margin (%) 17.1 14.0 14.5 14.7 14.6 FYE 31 Dec (RMmn) ROE (%) 17.5 9.5 10.4 10.5 10.3 Cash Flow Statement ROA (%) 14.9 8.3 9.3 9.3 9.0 Liquidity ratios 5.0 6.7 7.4 6.8 2016 2017 2018E 2019F 2020F Pretax profit 1,710.2 1,140.6 1,559.4 1,727.9 1,799.7 Depreciation 398.4 434.5 463.2 539.9 587.1 Net Interest 7.2 (45.1) (59.4) (30.4) (17.1) 6.1 Associates & JCEs 5.3 35.8 32.2 (127.9) (179.2) Working Cap Changes (264.5) 478.9 (313.7) (5.9) Income Tax Paid (394.1) (77.0) (280.7) (345.6) Current ratio (x) Quick ratio (x) 3.3 5.3 5.7 5.2 4.6 Interest coverage (x) 119.3 76.4 >100 >100 97.2 Others Leverage ratios Total Debt/Equity (%) 0.9 0.0 0.0 1.5 2.5 Total Debt/ Assets (%) 0.8 0.0 0.0 1.3 2.2 Net Gearing (%) Net Cash Net Cash Net Cash Net Cash Net Cash 0.0 0.0 0.0 CF from Operations 1,968.8 1,741.4 1,401.0 1,757.9 1,915.9 Capex (1,001.0) (1,471.0) (1,500.0) (1,575.0) (1,653.8) Interest Income Others Growth ratios CF from Investing 506.4 7.9 (1,388.8) (226.3) 85.3 (359.9) 60.3 (2,011.3) 59.4 36.4 33.6 0.0 0.0 0.0 (2,382.0) (3,422.0) (1,440.6) (1,538.6) (1,620.1) Revenue (%) (0.1) (3.8) 12.7 6.8 4.7 EBITDA (%) 40.5 (27.4) 25.1 5.7 3.8 Dividends 0.0 (120.0) PBT (%) 62.8 (33.3) 36.7 10.8 4.2 Net Change in debt (68.2) (75.4) 0.0 Core Net Profit (%) 104.0 (8.7) 17.1 8.1 4.2 Interest Paid (15.1) (15.2) 0.0 (6.0) Core EPS (%) 104.0 (8.7) 17.1 8.1 4.2 Others 13.1 3,477.4 0.0 0.0 0.0 (70.2) 3,266.8 (512.1) (359.6) (443.1) (483.3) 1,586.1 CF from Financing (512.1) (553.6) (576.6) 200.0 150.0 (16.5) Key Assumptions Plant Utilization 90 Net Cash Flow PE-Naphtha (USD/mt) (%) 91 78 756 86 710 92 747 Beginning Cash PP-Naphtha (USD/mt) 613 583 616 Exchange Rates Ending Cash 1,511.0 12.7 1,040.3 1,040.3 (252.3) 2,374.2 (551.7) 2,374.2 1,822.5 (140.2) 1,822.5 1,682.2 (147.4) 1,682.2 1,534.9 Page 3 of 4
21. 21-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 Wednesday, March 21, 2018, the analyst, Kylie Chan Sze Zan, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2031 6608 www.ta.com.my Page 4 of 4
22. Wednesday , 21 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
23. Technical View Wednesday , March 21, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,856.39 (+8.45, +0.46%) Chartist: Stephen Soo Close Name 20/Mar FBMKLCI 1856.39 Tel: +603-2167 9607 Change High Low 8.45 1,856.39 1,841.47 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 1,835.98 1,853.49 1,871.00 50.56 1,849.17 1,847.50 1,842.33 22.56 29.59 15.76 (7.03) 3.11 4.96 (1.854) SELL SELL - - AFFIN 2.45 0.00 2.45 2.41 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 4.33 0.01 4.33 4.27 3.98 4.16 4.34 59.37 4.21 4.16 4.18 24.59 15.15 22.25 9.44 0.04 0.02 0.021 BUY BUY - - AMBANK 4.14 -0.01 4.15 4.10 3.75 4.22 4.70 43.94 4.06 4.31 4.47 22.78 27.26 25.56 -4.48 -0.11 -0.12 0.011 SELL BUY - - AXIATA 5.49 0.14 5.52 5.29 5.20 5.45 5.71 42.94 5.38 5.48 5.53 12.13 29.56 30.42 -17.43 -0.06 -0.04 (0.013) SELL SELL - - CIMB 7.20 -0.06 7.27 7.20 7.10 7.20 7.31 60.34 7.21 7.13 7.03 25.51 19.67 23.50 5.85 0.07 0.08 (0.010) BUY SELL - - DIGI 4.62 0.02 4.64 4.58 4.57 4.77 4.98 32.67 4.70 4.80 4.83 9.62 33.73 28.03 -24.11 -0.06 -0.04 (0.021) SELL SELL - - GAMUDA 5.05 0.00 5.06 5.00 4.92 5.02 5.11 53.33 5.02 4.99 5.04 23.92 13.54 15.23 10.39 0.00 0.00 0.004 BUY BUY - - GENTING 8.99 0.00 9.00 8.84 8.72 8.93 9.14 50.54 8.90 8.93 9.15 10.85 17.84 23.53 -6.99 -0.04 -0.06 0.025 SELL BUY - - GENM 5.20 -0.05 5.27 5.17 4.99 5.20 5.41 50.77 5.19 5.22 5.32 25.23 18.38 14.17 6.85 -0.01 -0.04 0.024 BUY BUY - - IHH 6.20 0.15 6.20 6.03 5.96 6.05 6.15 51.30 6.06 6.03 6.00 18.36 13.43 17.78 4.93 0.02 0.02 (0.003) BUY SELL - - IOICORP 4.66 0.05 4.67 4.53 4.57 4.67 4.77 45.67 4.69 4.64 4.60 15.29 24.69 16.54 -9.40 0.02 0.03 (0.013) SELL SELL - - MALAKOFF 0.88 0.01 0.88 0.87 0.85 0.90 0.95 40.40 0.88 0.90 0.93 13.45 20.96 25.24 -7.50 -0.07 -0.07 (0.009) SELL SELL - - MAXIS 5.88 0.12 5.88 5.67 5.64 5.90 6.16 42.01 5.84 5.94 5.98 16.63 27.92 24.28 -11.29 -0.06 -0.05 (0.016) SELL SELL - - 10.34 0.02 10.38 10.26 10.17 10.38 10.59 52.78 10.42 10.28 10.13 17.64 26.75 29.95 -9.11 0.08 0.11 (0.032) SELL SELL - - MBSB 1.14 -0.03 1.17 1.13 1.13 1.20 1.26 46.71 1.17 1.19 1.19 19.16 19.58 12.94 -0.42 0.00 0.00 (0.004) SELL SELL SELL - RHBBANK 5.32 0.01 5.32 5.21 5.22 5.35 5.48 49.70 5.32 5.30 5.29 14.82 17.35 12.41 -2.53 0.01 0.02 (0.008) SELL SELL - - MAYBANK SIME 2.60 -0.06 2.66 2.60 2.56 2.68 2.81 47.93 2.63 2.70 2.75 18.62 24.27 23.86 -5.66 -0.02 -0.02 (0.001) SELL SELL - - 15.76 0.06 15.88 15.68 15.56 15.66 15.76 53.76 15.63 15.68 15.72 15.29 14.82 13.95 0.47 -0.01 -0.01 BUY BUY BUY BUY TM 5.46 -0.12 5.54 5.45 5.43 5.78 6.14 35.75 5.63 5.87 5.94 21.75 25.44 20.66 -3.69 -0.11 -0.10 (0.014) SELL SELL - - WPRTS 3.56 0.02 3.56 3.49 3.46 3.60 3.75 47.43 3.55 3.58 3.56 11.18 20.24 14.82 -9.05 -0.01 0.00 (0.008) SELL SELL - - AIRASIA 4.11 -0.01 4.11 4.05 3.87 4.23 4.60 48.64 4.07 4.21 4.10 20.71 25.79 22.13 -5.08 -0.01 0.02 (0.027) SELL SELL - - AIRASIA X 0.41 0.00 0.41 0.40 0.38 0.41 0.44 50.28 0.40 0.40 0.40 21.95 16.98 21.44 4.96 0.00 0.00 (0.001) BUY SELL - - ARMADA 0.84 0.01 0.84 0.82 0.81 0.85 0.88 48.71 0.84 0.84 0.84 14.65 22.12 19.00 -7.50 0.00 0.00 (0.003) SELL SELL - - BINAPURI 0.33 0.01 0.33 0.31 0.32 0.33 0.34 46.07 0.33 0.33 0.34 10.21 17.71 21.77 -2.81 0.00 0.00 SELL BUY - - CMSB 4.14 -0.03 4.18 4.14 4.05 4.23 4.41 48.66 4.16 4.21 4.17 16.55 19.36 15.05 5.58 -0.01 0.01 (0.017) BUY SELL - - DIALOG 2.82 0.02 2.85 2.77 2.57 2.69 2.80 61.74 2.69 2.67 2.66 23.09 17.51 15.61 5.58 0.03 0.02 BUY BUY - - ECO WORLD 1.08 -0.02 1.10 1.07 1.01 1.22 1.43 23.67 1.13 1.27 1.33 14.23 34.97 61.38 -20.73 -0.07 -0.07 (0.009) SELL SELL - - EKOVEST 0.96 -0.02 0.98 0.96 0.94 0.99 1.04 47.12 0.97 0.99 1.02 25.01 18.07 13.24 6.94 -0.01 -0.01 BUY BUY - - GADANG 0.92 -0.01 0.92 0.92 0.92 1.01 1.11 18.14 0.97 1.03 1.08 6.93 37.86 41.45 -30.93 -0.04 -0.03 (0.008) SELL SELL - - HSL 1.55 -0.06 1.59 1.55 1.58 1.62 1.65 52.74 1.61 1.60 1.57 21.46 34.25 15.13 -12.79 0.01 0.02 (0.005) SELL SELL - - ISKANDAR 1.39 -0.03 1.41 1.38 1.27 1.36 1.44 65.40 1.37 1.35 1.37 27.09 10.62 30.86 16.47 0.02 0.00 0.013 BUY BUY - - KIMLUN 2.10 0.00 2.10 2.09 2.08 2.13 2.18 24.20 2.11 2.15 2.20 23.49 48.05 27.24 -24.56 -0.03 -0.03 0.001 SELL BUY - - KKBE 0.95 -0.02 0.97 0.95 0.93 0.95 0.97 57.12 0.94 0.94 0.96 33.29 19.16 23.39 14.14 0.00 0.00 0.001 BUY BUY - BUY MUDAJAYA 0.74 -0.01 0.74 0.73 0.71 0.82 0.93 26.35 0.77 0.84 0.87 19.25 41.39 25.47 -22.13 -0.04 -0.03 (0.008) SELL SELL - - MRCB 1.00 -0.01 1.01 1.00 0.96 1.06 1.17 36.83 1.02 1.08 1.14 14.74 23.84 24.15 -9.11 -0.03 -0.03 (0.003) SELL SELL - - NAIM 1.00 -0.01 1.06 1.00 0.96 1.01 1.06 48.32 0.99 1.01 1.06 34.46 18.60 14.25 15.86 -0.02 -0.02 BUY BUY - - SAPURA ENERGY 0.49 -0.01 0.50 0.48 0.38 0.58 0.78 34.04 0.48 0.62 0.70 16.30 31.90 41.13 -15.60 -0.07 -0.07 (0.004) SELL SELL - - SUNCON 2.13 0.01 2.17 2.09 2.02 2.27 2.51 31.75 2.16 2.34 2.42 12.59 29.24 34.34 -16.65 -0.09 -0.08 (0.010) SELL SELL - - UEMS 1.00 0.01 1.01 0.99 0.93 1.05 1.18 35.48 1.00 1.07 1.11 14.17 24.95 30.73 -10.79 -0.03 -0.03 (0.003) SELL SELL - - UMWOG 0.31 0.00 0.32 0.31 0.29 0.32 0.34 46.30 0.31 0.31 0.34 23.49 17.12 16.29 6.37 -0.01 -0.01 BUY BUY - - WASEONG 1.59 -0.01 1.62 1.57 1.45 1.59 1.73 56.46 1.56 1.53 1.47 22.89 21.84 19.65 1.05 0.04 0.04 (0.006) BUY SELL - - WCT 1.30 -0.06 1.36 1.30 1.27 1.49 1.70 35.80 1.39 1.51 1.58 17.34 29.41 23.45 -12.07 -0.07 -0.05 (0.013) SELL SELL - - TENAGA 0.004 0.000 0.013 0.001 0.003 0.001 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
24. 21-Mar-18 Technical Comments : Take Profit Maybank & RHBBank Any near-term rallies on Maybank towards the upper Bollinger band (RM10.57) or 27/2/18 high (RM10.58) should see profit-taking interest checking gains, while corrections should be cushioned by the lower band (RM10.21) and 50-day moving average (RM10.14). Similarly, RHBBank should meet profit-taking resistance on any strength towards the upper Bollinger band (RM5.47), with tougher hurdle from the 2/2/18 double-top peak (RM5.61), while immediate support should come from the 76.4%FR (RM5.18), and then 200-day ma (RM5.10). MAYBANK RM10.34 (+0.02) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 10.57 10.39 10.21 10-day 30-day 50-day RM RM RM SELL Recent Signal Signal Change DMI DAILY MACD Recent Signal Signal Change RHBBANK RM RM RM SIMPLE MOVING AVERAGES 5.47 5.35 5.24 10-day 30-day 50-day DMI Recent Signal Signal Change SELL RM5.32 (+0.01) BOLLINGER BANDS Upper Middle Lower 10.40 10.29 10.14 RM RM RM 5.31 5.30 5.30 DAILY MACD SELL Recent Signal Signal Change SELL Page 2 of 4
25. 21-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 13-Mar 14-Mar 15-Mar 16-Mar 19-Mar Chg (A+B) DMF 13-Mar 14-Mar 15-Mar 16-Mar 19-Mar FBMKLCI (2.0) (36.8) 2.5 (6.5) (8.1) (50.8) (9.0) (1.7) 1,864 1,857 1,845 1,846 1,848 1.55 OUT 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 0.1 (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) 0.0 0.0 0.1 1.1 (2.3) (0.2) 0.5 (0.2) (0.9) 0.3 (0.5) (0.1) 0.0 (1.6) 0.1 (0.6) (0.3) (4.0) (0.0) 0.0 0.6 (0.4) (0.0) (0.0) 0.0 (1.0) 0.0 (0.1) 0.1 0.0 (0.1) 0.0 0.0 (0.0) (0.4) (0.0) (0.2) 0.1 (0.0) (0.1) (0.4) 0.2 0.1 (0.4) (0.3) 2.4 (17.2) (0.4) 1.9 3.8 (2.8) 7.4 0.2 1.8 (1.3) (12.3) (0.4) (1.2) (1.7) (35.0) (0.8) 0.2 (3.3) (1.1) 0.5 (0.0) (0.1) (3.9) (0.1) 0.3 0.1 0.0 (1.3) 0.0 0.0 (0.0) (1.1) 0.0 (6.4) 0.7 (0.2) 0.2 (0.8) 0.0 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 (0.0) 0.0 0.1 0.1 3.5 (0.1) (0.6) (2.3) (0.8) 1.5 (0.1) (0.3) 0.2 (0.4) 0.2 (0.7) (0.1) 6.8 (0.3) 0.1 1.2 (0.3) (0.5) 0.0 0.1 (2.8) 0.0 (0.1) 0.0 (0.0) 0.4 0.0 0.0 (0.0) (0.0) (0.0) 0.8 0.1 0.1 (0.1) (0.6) 0.2 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 2.45 4.32 4.15 5.35 7.26 4.60 5.05 8.99 5.25 6.05 4.61 0.87 5.76 10.32 1.17 5.31 2.66 15.70 5.58 3.54 4.12 0.41 0.84 0.33 4.17 2.80 1.10 0.98 0.92 1.61 1.42 2.10 0.97 0.75 1.01 1.01 0.49 2.12 1.00 1.60 0.31 1.36 (0.02) 0.00 0.03 0.03 0.04 0.06 0.01 0.04 0.01 (0.04) 0.03 0.00 (0.01) 0.00 0.00 (0.06) (0.04) 0.02 (0.02) 0.02 (0.03) (0.00) 0.02 0.00 0.07 0.02 (0.02) (0.03) (0.02) 0.00 (0.01) 0.00 0.02 0.01 0.01 0.00 0.01 0.01 (0.01) (0.02) 0.00 (0.01) IN IN OUT IN IN IN IN OUT OUT OUT IN OUT IN IN IN OUT OUT OUT OUT OUT IN IN OUT IN IN OUT IN OUT IN IN IN IN IN IN OUT OUT IN OUT IN OUT OUT IN 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
26. 21-Mar-18 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo No Name 13-Mar Tel: +603-2167 9607 Total Money Flow (RM'mn) 14-Mar 15-Mar 16-Mar Total 19-Mar 5D MF stsoo@ta.com.my (A) (B) Prv. Chg Cur. Chg 13-Mar 14-Mar www.taonline.com.my CLOSING PRICE 15-Mar 16-Mar (A+B) 19-Mar Chg DMF FBMKLCI (2.0) (36.8) 2.5 (6.5) (8.1) (50.8) (9.0) (1.7) 1,864 1,857 1,845 1,846 1,848 1.55 OUT 1 MAYBANK 0.8 (4.4) (5.9) (1.2) (1.6) (12.3) 4.7 (0.4) 10.44 10.44 10.36 10.32 10.32 0.00 IN 2 PBBANK 9.3 (2.5) 3.0 3.6 4.1 17.5 0.6 0.5 23.00 23.00 23.00 23.02 23.12 0.10 IN 3 TENAGA (1.4) (25.3) 6.6 (10.8) (4.0) (35.0) (17.4) 6.8 15.62 15.64 15.66 15.68 15.70 0.02 OUT 4 CIMB (3.7) (0.3) (5.0) (5.8) (2.3) (17.2) (0.8) 3.5 7.25 7.24 7.22 7.22 7.26 0.04 IN 5 PCHEM (0.4) (0.4) 1.3 6.8 2.0 9.3 5.6 (4.9) 8.15 8.10 8.15 8.15 8.15 0.00 IN 6 IHH 6.6 1.1 0.6 (1.1) 0.3 7.4 (1.7) 1.5 6.09 6.08 6.06 6.09 6.05 (0.04) OUT 7 AXIATA 0.3 (0.0) 0.2 1.0 1.1 2.4 0.8 0.1 5.45 5.40 5.20 5.32 5.35 0.03 IN 8 MAXIS (0.7) (0.3) (0.1) (0.2) 0.0 (1.3) (0.1) 0.2 5.89 5.75 5.64 5.77 5.76 (0.01) IN 9 HLBANK 0.8 0.3 0.4 (1.4) 0.3 0.5 (1.7) 1.7 19.02 19.30 18.78 18.72 18.80 0.08 OUT 10 SIME PLT (2.0) (0.2) 0.1 2.8 (3.9) (3.3) 2.7 (6.7) 5.60 5.56 5.52 5.48 5.50 0.02 OUT 11 DIGI (0.2) 0.3 (0.2) (0.1) (0.2) (0.4) 0.2 (0.1) 4.75 4.71 4.65 4.54 4.60 0.06 IN 12 NESTLE 1.4 (4.4) (0.9) (6.2) 1.0 (9.1) (5.3) 7.1 157.40 141.00 131.00 131.00 129.60 (1.40) IN 13 PETGAS 2.6 (0.0) 2.4 0.8 (0.2) 5.5 (1.7) (1.0) 17.90 17.90 18.00 18.00 17.86 (0.14) OUT 14 GENTING 1.7 (0.5) 0.7 2.1 (0.2) 3.8 1.5 (2.3) 8.92 9.05 8.90 8.95 8.99 0.04 OUT 15 MISC 0.1 0.4 (0.0) 0.7 (0.0) 1.2 0.7 (0.8) 7.09 7.13 7.03 7.21 7.05 (0.16) OUT 16 IOI CORP 0.2 2.1 (1.3) (0.4) (0.5) 0.2 0.9 (0.1) 4.87 4.86 4.68 4.58 4.61 0.03 IN 17 GENM 0.1 (1.0) (0.8) (0.2) (0.9) (2.8) 0.7 (0.8) 5.23 5.27 5.35 5.24 5.25 0.01 OUT 18 KLK (12.8) 1.9 (0.8) 1.2 1.6 (8.9) 1.9 0.5 25.42 25.20 25.38 25.32 25.36 0.04 IN 19 PETDAG 1.0 (0.4) 0.7 0.0 (0.1) 1.3 (0.7) (0.1) 24.72 24.74 24.74 24.80 24.80 0.00 OUT 20 HAP SENG 0.1 (0.1) 0.3 0.4 0.0 0.8 0.1 (0.4) 9.80 9.70 9.70 9.70 9.70 0.00 OUT 21 HLFG (0.1) 0.3 (0.0) 0.3 (0.1) 0.3 0.3 (0.4) 19.00 19.10 18.74 19.10 19.10 0.00 OUT 22 PPB (2.6) 0.0 0.3 1.0 (1.9) (3.3) 0.7 (2.9) 18.32 18.42 18.50 18.54 18.54 0.00 OUT 23 TM (0.6) (0.8) 0.3 0.3 (0.0) (0.8) (0.1) (0.3) 5.71 5.57 5.59 5.60 5.58 (0.02) OUT 24 RHBBANK (0.1) (0.1) (0.4) 0.1 (0.6) (1.2) 0.4 (0.7) 5.35 5.39 5.25 5.37 5.31 (0.06) OUT 25 PMETAL (1.2) (0.5) (0.0) (0.1) (1.4) (3.2) (0.0) (1.4) 4.97 5.00 4.99 4.95 4.96 0.01 OUT 26 SIME (0.2) (1.8) 0.8 (0.2) (0.3) (1.7) (1.0) (0.1) 2.65 2.65 2.62 2.70 2.66 (0.04) OUT 27 YTLCORP (0.1) (0.0) (0.0) 0.1 0.0 (0.1) 0.1 (0.1) 1.46 1.44 1.44 1.41 1.41 0.00 IN 28 KLCCS (0.1) (0.0) (0.1) (0.1) (0.2) (0.5) (0.1) (0.1) 7.85 7.82 7.80 7.60 7.40 (0.20) OUT 29 AMBANK (0.7) (0.2) 0.6 (0.1) 0.1 (0.3) (0.7) 0.1 4.19 4.08 4.07 4.12 4.15 0.03 OUT 30 ASTRO (0.0) (0.0) (0.1) 0.2 (0.1) (0.0) 0.2 (0.3) 2.36 2.33 2.35 2.34 2.30 (0.04) OUT 24.0 (24.1) (0.2) 6.4 (43.1) (36.7) 18.2 (15.6) 2.5 21.1 (27.6) (6.5) 10.5 (18.6) (8.2) 80.1 (129.2) (49.0) 14 (16) 8 (22) 15 (15) 16 (14) 11 (19) (RM'mn) INFLOW OUTFLOW NET FLOW Daily Trading Participation COMPANIES INFLOW OUTFLOW Date Retail Institution Foreign Total 13-Mar 14-Mar 15-Mar 16-Mar 19-Mar 21.3% 23.6% 21.9% 12.2% 22.6% 54.0% 56.0% 58.0% 38.5% 55.9% 24.7% 20.4% 20.1% 49.3% 21.5% 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 Wednesday, March 21, 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
27. Technical View Wednesday , March 21, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Stock Screen Malaysia End Day Census of 20.03.2018 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 AYER HOLDINGS BHD 2 KUALA LUMPUR KEPONG BHD 3 4 5 PPB GROUP BERHAD 6 7 Price RSI Lower Middle Upper 14-day 10-day 30-day 50-day Vol 20-day avg vol 6.59 6.20 6.56 6.91 48.79 6.49 6.63 6.80 1,100 410 25.40 25.15 25.38 25.61 53.65 25.36 25.33 25.26 1,418,600 1,147,510 GEORGE KENT (MALAYSIA) BHD 4.30 4.04 4.27 4.50 58.38 4.28 4.12 3.99 2,367,100 1,522,340 KHIND HOLDINGS BERHAD 1.91 1.71 1.87 2.04 49.14 1.81 1.94 2.05 10,200 5,495 18.58 17.51 18.11 18.71 72.97 18.27 17.86 17.68 1,654,500 927,545 CARING PHARMACY GROUP BHD 1.63 1.47 1.61 1.75 48.60 1.56 1.65 1.82 10,200 9,620 BINTULU PORT HOLDINGS BHD 5.90 5.77 5.88 5.98 50.03 5.86 5.93 5.95 1,700 1,120 8 BOUSTEAD HEAVY INDUSTRIES CO 1.91 1.77 1.88 1.99 52.55 1.84 1.94 1.93 8,800 5,425 9 LBI CAPITAL BHD 1.17 0.98 1.11 1.24 58.16 1.12 1.07 1.06 399,800 188,580 10 INNITY CORP BHD 0.75 0.52 0.67 0.82 58.12 0.73 0.65 0.68 21,100 15,840 11 BERMAZ AUTO BHD 2.23 1.96 2.13 2.30 59.13 2.11 2.14 2.20 2,835,700 2,467,240 12 GOPENG BHD 1.40 1.29 1.38 1.47 55.45 1.41 1.37 1.37 13,000 12,085 13 IRE-TEX CORP BHD 0.18 0.08 0.16 0.25 52.31 0.20 0.15 0.15 4,641,600 4,343,585 14 MBM RESOURCES BERHAD 2.46 2.13 2.33 2.52 64.78 2.36 2.31 2.33 466,100 234,680 15 GAMUDA BHD 5.05 4.92 5.02 5.11 53.33 5.02 4.99 5.04 4,960,500 4,034,800 16 SHL CONSOLIDATED BHD 2.70 2.55 2.65 2.75 53.23 2.67 2.65 2.68 42,200 5,500 17 ISKANDAR WATERFRONT CITY BHD 1.39 1.27 1.36 1.44 56.05 1.37 1.35 1.37 1,898,300 1,569,525 18 PROGRESSIVE IMPACT CORP BHD 0.16 0.08 0.14 0.21 54.06 0.17 0.13 0.13 8,111,400 6,658,375 19 MY EG SERVICES BHD 2.70 2.57 2.66 2.74 62.74 2.62 2.60 2.59 19,055,000 9,711,005 20 WONG ENGINEERING CORP BHD 1.14 1.02 1.10 1.18 54.53 1.12 1.10 1.12 275,800 231,190 21 WILLOWGLEN MSC BHD 1.25 1.07 1.18 1.29 62.79 1.18 1.15 1.15 749,400 348,120 22 ALLIANCE BANK MALAYSIA BHD 4.33 3.98 4.18 4.37 59.92 4.21 4.16 4.18 2,274,500 1,847,830 23 NEW HOONG FATT HOLDINGS BHD 3.33 3.25 3.31 3.37 51.91 3.32 3.32 3.33 7,000 5,410 24 DAIMAN DEVELOPMENT BHD 2.18 2.12 2.16 2.20 56.00 2.15 2.16 2.17 50,000 15,875 25 UZMA BHD 1.45 1.35 1.41 1.47 55.96 1.42 1.39 1.44 605,400 295,190 26 BRAHIM'S HOLDINGS BERHAD 0.41 0.21 0.32 0.43 60.01 0.30 0.33 0.38 4,608,500 3,612,215 27 MCE HOLDINGS BHD 0.75 0.69 0.73 0.76 52.53 0.73 0.73 0.74 40,800 29,965 28 HARRISONS HOLDINGS MALAYSIA 4.00 3.82 3.92 4.01 55.37 3.95 3.95 3.96 31,000 6,935 29 KENANGA INVESTMENT BANK BHD 0.61 0.57 0.59 0.62 57.37 0.59 0.60 0.60 141,700 139,485 30 SANBUMI HOLDINGS BHD 0.20 0.16 0.19 0.21 54.46 0.19 0.18 0.19 192,000 170,510 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
28. *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 CLOUDARON GROUP BHD 0.35 0.16 0.23 0.30 74.32 0.25 0.23 NA 14,500 1,225 2 GOODWAY INTEGRATED INDUS BHD 0.30 0.16 0.21 0.26 75.50 0.20 0.21 0.22 42,488,700 149,435 3 PUBLIC BANK BERHAD 23.52 22.38 22.93 23.48 84.25 23.01 22.54 21.95 7,629,000 5,794,775 4 MWE HOLDINGS BERHAD 1.62 1.11 1.35 1.58 82.03 1.36 1.32 1.33 969,800 464,865 5 MISC BHD 7.30 6.65 6.96 7.27 59.95 6.97 7.01 7.20 1,240,700 1,519,680 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 IHH HEALTHCARE BHD 6.20 5.95 6.06 6.17 62.39 6.06 6.03 6.00 4,733,400 5,673,435 8 G3 GLOBAL BHD 0.81 0.70 0.75 0.79 61.28 0.73 0.76 0.80 542,700 18,705 9 PANPAGES BHD 0.29 0.24 0.26 0.28 76.27 0.26 0.25 0.25 4,857,300 451,660 10 SIN HENG CHAN (MALAYA) BHD 0.60 0.48 0.53 0.59 60.66 0.52 0.54 0.56 38,100 4,075 11 SILVER RIDGE HOLDINGS BHD 0.25 0.22 0.23 0.25 59.29 0.23 0.23 0.23 20,527,700 5,722,935 12 BORNEO AQUA HARVEST BHD 1.40 0.76 1.08 1.40 86.44 1.16 0.98 0.90 6,152,200 4,397,270 13 TECHNODEX BHD 0.14 0.13 0.13 0.14 62.06 0.13 0.13 0.13 361,300 1,293,700 14 ASIA MEDIA GROUP BHD 0.09 0.08 0.08 0.09 58.40 0.08 0.08 0.09 315,400 486,195 15 SYMPHONY LIFE BHD 0.81 0.80 0.80 0.81 65.12 0.80 0.79 0.78 158,400 157,760 16 MAGNI-TECH INDUSTRIES BHD 5.20 4.04 4.62 5.20 66.60 4.52 4.52 4.83 302,800 298,245 17 DIALOG GROUP BHD 2.82 2.57 2.69 2.82 63.18 2.69 2.67 2.66 15,232,500 14,008,580 18 SEG INTERNATIONAL BHD 0.66 0.65 0.65 0.66 53.92 0.65 0.65 0.65 40,000 173,045 19 SHIN YANG SHIPPING CORP BHD 0.25 0.22 0.24 0.25 61.62 0.24 0.23 0.23 455,500 373,150 20 PLENITUDE BHD 1.45 1.35 1.40 1.45 56.73 1.39 1.43 1.48 503,800 52,280 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 Lower Middle Upper 14-day 10-day Vol 20-day avg vol 30-day 50-day 1 KLCCP STAPLED GROUP 7.01 7.33 7.74 8.14 23.91 7.75 7.79 7.80 841,600 2 POH HUAT RESOURCES HLDGS BHD 1.30 1.41 1.52 1.63 22.45 1.52 1.52 1.56 2,146,200 85,895 3 AEON CREDIT SERVICE M BHD 13.06 13.16 13.48 13.80 36.82 13.45 13.38 13.46 236,200 181,975 4 HAI-O ENTERPRISE BHD 243,330 5 ALLIANZ MALAYSIA BHD 6 349,475 4.60 4.69 5.05 5.40 16.25 4.97 5.13 5.20 412,600 12.40 12.48 12.85 13.23 20.36 12.77 12.93 13.05 7,200 27,895 POWER ROOT BHD 1.28 1.34 1.57 1.81 14.85 1.52 1.63 1.74 2,287,800 543,960 7 LII HEN INDUSTRIES BHD 2.87 2.92 3.07 3.22 28.28 3.07 3.05 3.12 581,400 275,530 8 SASBADI HOLDINGS BHD 0.34 0.39 0.48 0.56 19.70 0.47 0.48 0.53 6,209,700 2,681,480 1,558,710 9 PADINI HOLDINGS BERHAD 4.56 4.61 4.98 5.35 31.14 4.92 5.02 5.10 1,110,300 10 MANULIFE HOLDINGS BHD 2.94 2.99 3.25 3.51 30.91 3.21 3.28 3.26 900 5,355 11 ASTRO MALAYSIA HOLDINGS BHD 2.16 2.20 2.40 2.59 21.96 2.35 2.47 2.54 6,792,200 1,922,235 12 SERN KOU RESOURCES BHD 0.61 0.65 0.77 0.90 20.68 0.77 0.79 0.77 493,000 395,355 13 SUNWAY REAL ESTATE INVESTMEN 1.58 1.61 1.68 1.74 27.48 1.67 1.70 1.71 2,880,500 1,794,405 235,700 14 GHL SYSTEMS BERHAD 1.25 1.28 1.39 1.49 28.13 1.37 1.40 1.45 410,700 15 AMVERTON BHD 1.09 1.11 1.25 1.40 21.33 1.22 1.31 1.31 600 22,915 16 PRESTARIANG BHD 1.43 1.45 1.59 1.72 27.42 1.55 1.61 1.67 200,700 98,095 17 HOCK SENG LEE BERHAD 1.55 1.57 1.61 1.66 40.90 1.61 1.60 1.57 4,300 156,315 18 OLDTOWN BHD 3.12 3.14 3.16 3.18 37.36 3.16 3.16 3.12 47,600 1,182,425 19 IGB REAL ESTATE INVESTMENT T 1.46 1.48 1.52 1.56 24.37 1.51 1.54 1.56 1,987,700 1,524,785 20 CENTRAL INDUSTRIAL CORP BHD 0.92 0.94 1.01 1.09 34.31 1.00 1.00 1.01 6,000 2,390 Raw data sourced from Bloomberg 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 Wednesday, March 21, 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