Bursa Malaysia Daily Market Report - 22 February

Transcription

1. Thursday , 22 February, 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 . M a la k o f f C o rp o r a t io n Be r h a d : T g . B in E n e rg y i s Do w n A g a in 2 . M a la ys i a A i rp o rt s H o l d i n g s Be rh a d : M o r e U n c e r ta in ty L i e s A h e a d Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks ( L oc al ) 2. D ai l y St o ck S cr een 3. D ai l y For ei gn T ech n i c al St o ck P i cks ( HK ) 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 Thursday , 22 February 2018 TA Research, e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (21.02.2018) Volume Main Market 1,270.3 -32.5 Warrants 673.6 3.3 ACE Market 333.1 35.8 Bond 2.7 -1.7 ETF 1.7 1.0 LEAP 0.0 0.0 Total 2,281.5 Off Market 10.1 -68.8 2,344.5 119.1 64.8 0.7 2.0 0.0 2,531.2 37.4 Value 448.3 -20.3 1.6 -0.1 1.2 0.0 -142.4 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP February 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 4.0 2.5 2.0 1.0 % YTD chg 2.18 31.48 115.72 6.00 0.12 0.24 0.69 0.32 3.41 2.62 -0.95 3.98 24,797.78 7,218.23 7,281.57 21,970.81 2,429.65 31,431.89 3,516.23 1,801.16 6,643.40 3,199.16 1,739.15 5,943.72 -166.97 -16.08 34.80 45.71 14.53 558.26 39.70 0.14 -19.48 0.00 0.00 2.87 -0.67 -0.22 0.48 0.21 0.60 1.81 1.14 0.01 -0.29 0.00 0.00 0.05 0.32 4.56 -5.28 -3.49 -1.53 5.06 3.33 2.71 4.53 -3.27 -8.43 -2.00 (mn) 1.10 11.79 1.13 1.09 Exchange Rate USD/MYR 3.9118 0.019 USD/JPY 107.74 0.440 EUR/USD 1.228 -0.0057 Counter MAYBANK PBBANK CIMB PCHEM AXIATA DIGI HLBANK PETGAS MISC IOICORP Mkt Cap. Chg (RM’mn) (RM) 110,252 85,493 65,778 65,120 51,394 38,409 38,130 35,419 31,782 29,911 0.04 0.06 0.01 0.04 0.01 0.05 0.14 0.10 0.01 0.01 While the local benchmark was shored up Wednesday by big consumer, banking and oil & gas heavyweights, the broader market stayed range bound, with mild rotational plays on lower liners highlighting trade. The KLCI gained 2.18 points to close at 1,858.17, after ranging between early low of 1,852.14 and high of 1,860.43, as gainers led losers 605 to 330 on moderate turnover of 2.28bn shares worth RM2.53bn. Stocks are likely to range sideways amid cautious trade as investors digest the recent meeting minutes from the US and European central banks for clues on their monetary policy stance. Immediate resistance for the index will be at 1,875, the upper Bollinger band, with the 2 Feb peak of 1,880 acting as a formidable upside hurdle. Immediate uptrend support will be at 1,840 and 1,838, the respective 10 and 30-day moving averages, while crucial resistance-turn-support level is at 1,796, the June 2017 peak matching the recent low. Genting Berhad should retrace recent gains due to profit-taking and limited upside with overhead resistance from the 100-day ma (RM9.25) and 76.4%FR (RM9.41), while key retracement support is from the 50%FR (RM8.75), and stronger support from the lower Bollinger band (RM8.62). Likewise, Genting Malaysia should retreat towards the lower Bollinger band (RM5.22), with better support seen at the 38.2%FR (RM5.16), while overhead resistance from the 200-day ma (RM5.58), 61.8%FR (RM5.63) and upper band (RM5.65) restricts upside potential. News Bites Top 10 KLCI Movers Based on Mkt Cap. (RM) @ @ @ @ 201 99 25 2 3 0 330 % chg 1,858.17 13,282.28 16,888.44 1,856.00 Off Market TNLOGIS HARTA CHINHIN HUPSENG Review & Outlook Value/ 1.85 356 0.18 182 0.19 62 0.26 3 1.17 2 0.00 0 1.11 605 3.70 Vol. (mn) 13.28 4.64 8.97 8.45 5.89 3.52 0.83 0.78 1.60 3.68 Commodities Futures Palm Oil (RM/mt) 2,491.00 6.00 Crude Oil ($/Barrel) 61.34 -0.43 Gold ($/tr.oz.) 1,326.60 -4.80 Important Dates HSSEB - 1:10 Rights Issue - RI of up to 31.9m shares together with BI of up to 15.9m shares and up to 47.9m free detachable warrants. 1 rights share for every 10 existing shares held, at an issue price of RM1.30 per rights share, together with 1 bonus share and 3 warrants for every 2 rights shares subscribed. Trading of Rights: 22/02 - 28/02/2018. Application Closed: 08/03/2018. LISTING ON: 21/03/2018. • Brahim's Holdings Bhd has proposed to undertake a private placement of up to 10% of its existing issued shares to raise funds. • HSS Engineers Bhd's announced that the share price of its upcoming rights issue and private placement exercise entailing the issue of up to 31.9mn rights shares is at RM1.30/share. • UCrest Bhd's wholly-owned subsidiary, Palette System Sdn Bhd, has entered into a contract with Key Asic Pte Ltd at a contract value of USD838,993 (RM3.3mn). • Hap Seng Plantations Holdings Bhd (HSPH) has proposed to acquire a 55% stake in smaller rival Kretam Holdings Bhd for RM1.2bn or 92.0sen/ share to boost its plantation land bank. • Eden Inc Bhd has been slapped with a wind-up petition by the government of Malaysia for allegedly owing the Inland Revenue Board of Malaysia about RM3.2mn. • Cloudaron Group Bhd has entered into a sale and purchase agreement with Australia-listed 8common Ltd for the proposed acquisition of the remaining 90% shares it does not own in Realtors8 Pte Ltd for S$4.2mn (RM12.5mn). • AirAsia X Bhd's (AAX) 4QFY17 net profit more than doubled to RM84.4mn supported by growth in passenger volume. • Malakoff Corporation Bhd's FY17 net profit declined by 12.8% YoY to RM310.0mn due to lower capacity payment recorded by Segari Energy Ventures Sdn Bhd. • Hibiscus Petroleum Bhd's 2QFY18 net profit increased 3.4% YoY to RM11.0mn bolstered by improved revenue and lower expenses. • Malaysia Airports Holdings Bhd's FY17 net profit grew by 236.0% YoY to RM236.5mn in tandem with revenue growth. • Petrol prices down across the board for the week beginning Feb 22. • Australia's wages grew more than expected, climbing 0.6% sequentially in the fourth quarter. • Japan's manufacturing activity grew at a slightly slower pace in February, as output and new orders expanded at the slowest pace since October 2017. • Sales of previously owned U.S. homes in January experienced their sharpest annual drop in more than three years as low inventories and rising prices and interest rates took a toll. • Eurozone business growth remained robust this month, with companies at their most optimistic in more than five years, a private-sector survey showed. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. Thursday , February 22, 2018 FBMKLCI: 1,858.17 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 Sideways as Investors Digest Central Bank Policy While the local benchmark was shored up Wednesday by big consumer, banking and oil & gas heavyweights, the broader market stayed range bound, with mild rotational plays on lower liners highlighting trade. The KLCI gained 2.18 points to close at 1,858.17, after ranging between early low of 1,852.14 and high of 1,860.43, as gainers led losers 605 to 330 on moderate turnover of 2.28bn shares worth RM2.53bn. Key Resistance at 1,875/80, Support at 1,840/38 Stocks are likely to range sideways amid cautious trade as investors digest the recent meeting minutes from the US and European central banks for clues on their monetary policy stance. Immediate resistance for the index will be at 1,875, the upper Bollinger band, with the 2 Feb peak of 1,880 acting as a formidable upside hurdle. Immediate uptrend support will be at 1,840 and 1,838, the respective 10 and 30-day moving averages, while crucial resistance-turnsupport level is at 1,796, the June 2017 peak matching the recent low. Take Profit Genting Bhd & Genting Malaysia Genting Berhad should retrace recent gains due to profit-taking and limited upside with overhead resistance from the 100-day ma (RM9.25) and 76.4%FR (RM9.41), while key retracement support is from the 50%FR (RM8.75), and stronger support from the lower Bollinger band (RM8.62). Likewise, Genting Malaysia should retreat towards the lower Bollinger band (RM5.22), with better support seen at the 38.2%FR (RM5.16), while overhead resistance from the 200-day ma (RM5.58), 61.8%FR (RM5.63) and upper band (RM5.65) restricts upside potential. Asian Markets Fluctuate as Investors Await Fed Minutes Asia-Pacific stock markets gained after a choppy start Wednesday, following the first down day on Wall Street in seven sessions. In stateside overnight, the Dow and S&P 500 were weighed down by a steep loss for Walmart after the retailer reported lower-than-expected earnings. Investors’ attention now turns to minutes from the Federal Reserve’s most recent meeting, due Wednesday in New York. They will also get to parse minutes from the most recent meeting of the European Central Bank. Japan’s Nikkei share average edged up on Wednesday in choppy trade as chip stocks and other exporters were boosted by steady dollar-yen levels, offsetting weakness in financial stocks such as insurers, brokers and banks. The Nikkei ended 0.3 percent higher to 21,970.81, after moving in and out of negative territory. Over in South Korea, the Kospi edged up by 0.6 percent to close at 2,429.65, with the index moving in and out of positive territory through the session. Steelmakers traded lower after the South Korean government submitted a World Trade Organization complaint over U.S. duties. Meanwhile, Australia's ASX 200 closed higher by 0.05 percent at 5,943.7 after hovering around the flat line for most of the session as investors focused on earnings releases. Markets in China remained closed for the Lunar New Year holiday. Page 1 of 7
4. 22-Feb-18 Wall Street Tumble as Fed Minutes Send Bond Yields Higher U .S. stocks ended a volatile session on a downbeat note on Wednesday, as an afternoon rally quickly fizzled in the wake of the Federal Reserve releasing the minutes to its most recent meeting. After the Fed left interest rates unchanged in January, minutes showed the U.S. central bank’s rate-setting committee grew more confident in the need to keep raising rates, with most believing inflation would perk up amid an improving economic landscape. Stocks initially reacted positively, with each of the major Wall St indexes touching session highs. Stocks began to pare gains, however, as bond yields climbed to a four-year high of 2.957 percent on the likelihood of further rate increases this year. Expectations for a quarter-point hike at the Fed’s next meeting in March are currently 93.5 percent, according to Thomson Reuter’s data. The Fed has forecast three rate hikes in 2018. The prospect of higher rates and an unexpected fall in January U.S. existing home sales dented the real estate sector, off 1.81 percent. Other sectors seen as bond proxies due to their high dividend yields, utilities and telecoms, also dropped more than 1 percent. The Dow Jones Industrial Average fell 166.97 points, or 0.67 percent, to 24,797.78, the S&P 500 lost 14.93 points, or 0.55 percent, to 2,701.33 and the Nasdaq Composite dropped 16.08 points, or 0.22 percent, to 7,218.23. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Thursday, February 22, 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 7
5. 22-Feb-18 N e w s i n B r i e f Corporate AirAsia X Bhd ’s 4QFY17 net profit more than doubled to RM84.4mn supported by a 12% growth in passenger volume. Likewise, FY17’s net profit also more than doubled to RM98.9mn. (Bursa Malaysia) Brahim’s Holdings Bhd has proposed to undertake a private placement of up to 10% of its existing issued shares to raise funds for the repayment of bank borrowings and working capital purposes. (Bursa Malaysia) Freight Management Holdings Bhd’s 2QFY18 net profit increased by 16.2% YoY to RM5.9mn on higher revenue contributions from all services except for tug and barge as well a gain on dilution on investment in TCH, a company incorporated in Singapore. (Bursa Malaysia) MSM Malaysia Holdings Bhd’s 4QFY17 net profit declined by 9.1% YoY to RM13.1mn mainly due to higher finance cost and taxation. For FY17, net profit declined by 127.0% YoY due to higher raw material cost and the weakened Ringgit. The slight improvement in revenue by 0.3% YoY to RM2.7bn was due to improved average selling price. (Bursa Malaysia) UOA Development Bhd’s 4QFY17 and FY17 net profit respectively declined by 44.6% YoY to RM191.8mn and 27.4% YoY to RM491.2mn. The weaker performance during the quarter was mainly due to the absence of fair value adjustments. A final dividend of 15.0sen/share was declared. (Bursa Malaysia) Malakoff Corporation Bhd’s 4QFY17 and FY17 net profit respectively declined by 51.5% YoY to RM43.7mn and 12.8% YoY to RM310.0mn. The weaker performance during both periods was primarily due to lower capacity payment recorded by Segari Energy Ventures Sdn Bhd following revision of the Power Purchase Agreement commencing 1 July 2017, partially moderated by higher fuel margin recorded at Tanjung Bin Power Sdn Bhd and Tanjung Bin Energy Sdn Bhd. (Bursa Malaysia) UCrest Bhd’s wholly-owned subsidiary, Palette System Sdn Bhd, has entered into a contract with Key Asic Pte Ltd for the sale of the iMedic Platform for 40,000 user licences for 1 year and configuration of the Cloud Platform at a contract value of USD838,993 (RM3.3mn). (Bursa Malaysia) Hap Seng Plantations Holdings Bhd (HSPH) has proposed to acquire a 55% stake in smaller rival Kretam Holdings Bhd for RM1.2bn or 92.0sen/share to boost its plantation land bank. (The Edge) HSS Engineers Bhd’s announced that the share price of its upcoming rights issue and private placement exercise entailing the issue of up to 31.9mn rights shares is at RM1.30/share, representing a discount of 24.0sen/share or 15.6% to the theoretical ex-all price. (The Star) Hibiscus Petroleum Bhd’s 2QFY18 net profit increased 3.4% YoY to RM11.0mn bolstered by improved revenue and lower expenses. (The Star) Box-Pak Malaysia Bhd posted its fifth loss-making quarter in 4QFY17. However, its quarterly losses narrowed to RM0.8mn from RM6.2mn a year ago supported by other income gains and deferred taxation. (The Edge) Page 3 of 7
6. 22-Feb-18 Merge Energy Bhd ’s 2QFY18 turned in losses of RM0.6mn from a net profit of RM0.7mn in the previous corresponding period mainly due to a significant drop in progress billings as current projects had completed and no new projects were secured. Separately, the group bagged a RM105.5mn contract from Pengurusan Aset Air Bhd to develop a water treatment plant and water pipes under Package 1 in Pagoh, Johor. (Bursa Malaysia/The Edge) GHL Systems Bhd’s 4QFY17 net profit grew by 11.5% YoY to RM4.9mn due to lower depreciation expenses and lower associate losses. For FY17, net profit grew by 13.4% YoY to RM20.5mn driven by growth in all geographical markets and lower effective taxation rates. (Bursa Malaysia) D&O Technologies Bhd’s 4QFY17 net profit grew by 82.7% YoY to RM6.9mn on a lower effective tax rate of 22.9% versus that of 40.5% in 4QFY16. For FY17, net profit grew almost doubled to RM22.4mn on higher sales revenue, improved gross profit margin and lower net other expense. A final dividend of 0.5sen/share was proposed. (Bursa Malaysia) Al-Aqar Healthcare Real Estate Investment Trust's 4QFY17 and FY17 net profit respectively grew by 154.9% YoY to RM38.0mn and 33.4% YoY to RM84.6mn mainly due to higher fair value gains on investment properties and lower financing cost. (Bursa Malaysia) Eden Inc Bhd has been slapped with a wind-up petition by the government of Malaysia for allegedly owing the Inland Revenue Board of Malaysia about RM3.2mn. (Bursa Malaysia) Malaysia Airports Holdings Bhd’s 4QFY17 net profit declined by 16.4% YoY to RM27.9mn due to an increase in amortisation and depreciation of RM145.5mn. FY17’s net profit grew by 236.0% YoY to RM236.5mn in tandem with revenue growth of 11.5% YoY to RM4.7bn on the back of growth in both airport and non-airport operations. (Bursa Malaysia) Cloudaron Group Bhd has entered into a sale and purchase agreement with Australialisted 8common Ltd for the proposed acquisition of the remaining 90% shares it does not own in Realtors8 Pte Ltd for S$4.2mn (RM12.5mn). (The Star) Page 4 of 7
7. 22-Feb-18 N e w s I n B r i e f Economy Asia Malaysia ’s Fuel Prices Drop for Last Week of February Petrol prices down across the board for the week beginning Feb 22. RON95 petrol priced at RM2.17 per litre (down 6 sen from RM2.23) while RON97 retailed at RM2.43 per litre (down 7 sen from RM2.50). Diesel retailed at RM2.13 per litre (down 6 sen from RM2.19). The new prices were announced on RTM1 on Wednesday evening and took an effect from 12.01am on Thursday (Feb 22) until Feb 28. The weekly fuel pricing mechanism came into effect in April last year and the prices of petrol and diesel has been placed on a managed monthly float system since Dec 1, 2014 following the removal of fuel subsidies. (The Star) Australia's Wage Growth Tops Expectations Australia's wages grew more than expected in the fourth quarter, figures from the Australian Bureau of Statistics showed. The wage price index climbed 0.6% sequentially in the fourth quarter, faster than the 0.5% increase logged in the September quarter. The growth rate was expected to remain at 0.5%. Year-on-year, growth in wages improved to 2.1% from 2% in the preceding period. Wages were expected to climb again by 2%. Wages in private sector gained at a steady pace of 1.9% and that in public sector remained at 2.4%. (RTT) Other news in Australia: Australia's leading index that signals the likely pace of economic activity in future dropped at the start of 2018, data from the Westpac Institutional Bank showed. The six month annualized growth rate in the Westpac-Melbourne Institute Leading Index fell to 0.73 in January from 1.39 in December. (Westpac Institutional Bank) Australia's construction work done declined sharply by 19.4% in the fourth quarter, offsetting third quarter's 16.6% increase. This was the first fall in five quarters and also bigger than the expected drop of 10%. The value of total building work done gained 0.2%, while engineering work done declined 35.4%. (Australian Bureau of Statistics) Japan's Manufacturing Growth Eases In February Japan's manufacturing activity grew at a slightly slower pace in February, flash data from IHS Markit showed. The Nikkei flash manufacturing Purchasing Managers' Index fell to 54.0 in February from 54.8 in January. Nonetheless, a score above 50 indicates expansion in the sector. Data showed that both output and new orders expanded at the slowest pace since October 2017. Meanwhile, employment growth accelerated to an 11-year high. A number of panellists indicated that the stronger currency had prompted them to lower prices to overseas customers. Indeed, further yen strengthening will create unwanted drag on inflationary pressures. Separately, Japan's all industry activity growth halved in December, the Ministry of Economy, Trade and Industry reported. The all industry activity index rose 0.5% month-on-month in December, following November's 1% increase. Nonetheless, this was the third consecutive increase in activity and bigger than the expected 0.4% rise. Industrial production advanced 2.9%, while construction activity shrank 0.4% and tertiary industry activity contracted 0.2% in December. On a yearly basis, all industry activity growth slowed to 1.8% in December from 2% a month ago. In the fourth quarter, all industry activity rebounded 0.7% after declining 0.3% in the third quarter. (RTT) Page 5 of 7
8. 22-Feb-18 United States Home Sales Post Their Sharpest Drop in Three Years Sales of previously owned U .S. homes in January experienced their sharpest annual drop in more than three years as low inventories and rising prices and interest rates took a toll. Existing-home sales fell 3.2% in January from the previous month to a seasonally adjusted annual rate of 5.38 million, the National Association of Realtors said Wednesday. Economists had expected sales to improve modestly last month after sales also declined in December. Compared with a year earlier, sales in January were down 4.8%, the steepest annual decline since August 2014. The average rate nationwide for a 30-year, fixed-rate mortgage climbed roughly a quarter of a percentage point to 4.22% by the beginning of February from 3.95% at the beginning of January, according to mortgage-finance giant Freddie Mac. Rates on Thursday stood at 4.38%, according to Freddie Mac. Borrowing costs still remain low by historical standards. (The Wall Street Journal) Fed Officials Marked Up Growth, Inflation Outlook in January Federal Reserve officials agreed last month that a strengthening economic growth outlook bolstered their plans to keep raising short-term interest rates this year. Fed officials late last month believed the economy was set to grow faster than they when they met in December, according to minutes of their Jan. 30-31 meeting, which were released on Wednesday. After the December meeting, Congress approved tax cuts that were slightly larger than officials had anticipated. Stocks also rose to new highs in the month before the January meeting, likely giving an additional boost to economic growth, they thought. Stock markets convulsed in the days following the January meeting. Economic reports hinted at rising wage and price pressures, fueling fears the Fed might raise rates faster than expected, and bond yields climbed to their highest levels in four years. Also after the January meeting, Congress approved a larger-than-expected government spending plan, which has prompted more economists to project the Fed will need to raise rates slightly faster to ensure the economy stays on an even keel. Officials had already marked up their growth projections when they met in mid-December because Congress was close to agreement on a $1.5 trillion tax cut package. When officials met in January, several had further marked up their growth forecasts citing rising stock prices and relatively low bond yields as well as “information suggesting that the effects of recently enacted tax changes—while still uncertain—might be somewhat larger in the near term than previously thought,” the minutes said. Others said the prospects for economy to perform better than they expected had also increased. “A majority of participants noted that a stronger outlook for economic growth raised the likelihood that further gradual policy firming would be appropriate,” the minutes said. After holding its benchmark federal-funds rate near zero for seven years, the Fed has raised it five times since late 2015 to a range between 1.25% and 1.5%. They also penciled in three quarterpercentage-point rate increases in 2018 and two more moves in 2019. (The Wall Street Journal) Europe and Uni ted Kingdom Eurozone Businesses Lose Some Steam but Are Still Fired Up Eurozone business growth remained robust this month, with companies at their most optimistic in more than five years, a private-sector survey showed, despite indications higher prices and a stronger currency were taking a toll. The Eurozone emerged as one of the bestperforming major economies last year, and its businesses started 2018 by ramping up activity at the fastest rate in well over a decade. But February’s preliminary Purchasing Managers’ Index (PMI) implied the pace of growth set in January, the fastest in well over a decade, has lost a little momentum. IHS Markit’s composite flash PMI for the Eurozone, seen as a good guide to economic health, fell to 57.5 this month, below all forecasts in a poll, which had predicted a more modest dip to 58.5 from January’s final reading of 58.8. Nevertheless, this month’s reading was still one of the most expansionary - or farthest above 50 - in more than 11 years. IHS Markit said the bloc was heading for its best quarterly growth since the second quarter of 2016, with the PMI pointing to first-quarter growth of 0.9%, much faster than the 0.6% predicted. Companies shared that optimism - an index measuring expected output in a year’s time climbed to 68.3 from 68.0, its highest since IHS Markit started collecting the data in July 2012. Page 6 of 7
9. 22-Feb-18 Rising UK Employment Signals Faster Wage Growth Rising employment in the UK may finally be leading to faster wage growth , according to the latest labour market figures published on Wednesday. Average weekly earnings grew by 2.5% excluding bonuses in the fourth quarter of 2017, up from a rate of 2.3% in the three months ending in November, according to the Office for National Statistics, Britain’s statistics agency. This was the fastest rate of pay growth for a year, but was not enough to prevent remuneration in the final quarter of 2017 from falling 0.3% compared to the same period in 2016, after adjusting for inflation. There were also signs that productivity growth was increasing, with output up by 0.5% in the final three months of 2017, the second consecutive quarter of growth. The number of hours worked also fell over the period. The drop in hours and rise in growth meant that output per hour increased by 0.8% compared to the previous quarter, the second highest rate since 2011. It follows on from a 0.9% increase in the third quarter of the year. The number of unemployed rose by 46,000 in the final quarter of 2017 — the biggest rise since 2011. The unemployment rate finished the year at 4.4%, a rise of 0.1% compared to the previous quarter. However, while unemployment rose, so did the number of people in work. They were up by 88,000 over the quarter, while the number of ‘inactive’ people — who are neither working nor looking for a job — fell by109,000. (Reuters) UK Budget Logs Surplus in January The UK budget balance showed surplus in January, the Office for National Statistics showed. Public sector net borrowing, excluding public sector banks, was in GBP 10 billion surplus in January. This was the second highest January surplus on record. Economists had forecast a surplus of GBP 9.6 billion. During the current financial year-to-date, PSNB excluding public sector banks, decreased GBP 7.2 billion to GBP 37.7 billion, this was the lowest year-to-date net borrowing since the financial year-to-date ending January 2008. Public sector net debt, excluding public sector banks, was GBP 1,736.8 billion at the end of January, which was equivalent to 84.1% of gross domestic product. (RTT) Share Buy-Back: 21 February 2018 Company E&O FIMACOR KPJ MALAKOF SAUDEE SCGM SNTORIA SUPERMX UNIMECH YILAI Bought Back Price (RM) Hi/Lo (RM) 70,000 10,000 64,900 1,800,000 10,000 23,700 30,000 1,000 22,000 27,100 1.47 2.00 0.95/0.935 0.92/0.91 0.47 2.24/2.18 0.64 2.50 1.02/1.00 0.75 1.47/1.44 2.04/1.98 0.95/0.935 0.935/0.905 0.47 2.28/2.15 0.64/0.61 2.58/2.47 1.02/1.00 0.75 Total Treasury Shares 25,243,747 4,202,500 65,570,600 16,168,100 74,000 762,200 3,966,000 24,501,100 6,832,910 8,699,208 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 21-Feb-18 AUTOMOBILE BAUTO 2.20 2.50 13.6% Buy 2,550 0.50 14.3 19.9 15.4 11.1 5.2 5.5 2.47 -10.9 1.84 19.6 MBMR 2.29 2.32 1.3% Under Review 895 0.70 23.2 23.9 9.9 9.6 2.0 2.1 2.60 -11.9 2.01 13.9 0.0 4.1 PECCA 1.36 1.86 36.8% Buy 251 0.36 11.1 12.5 12.2 10.9 4.1 4.5 1.70 -20.0 1.26 7.9 -12.3 SIME 2.73 1.97 -27.8% Hold 18,566 1.53 12.0 12.7 22.8 21.6 1.1 1.2 3.06 -10.8 2.03 34.7 23.5 UMW 6.65 4.37 -34.3% Sell 7,769 1.29 20.7 36.9 32.1 18.0 1.5 2.7 6.98 -4.7 4.70 41.5 27.9 BANKS & FINANCIAL SERVICES ABMB 4.10 4.60 12.2% Hold 6,347 1.29 30.6 35.6 13.4 11.5 3.9 3.9 4.49 -8.7 3.62 13.3 0.5 AFFIN 2.53 2.70 6.7% Hold 4,916 0.93 24.2 28.1 10.4 9.0 3.2 3.2 2.98 -15.0 2.22 13.9 9.5 AMBANK 4.63 5.50 18.8% Buy 13,956 1.39 48.6 52.0 9.5 8.9 3.9 3.9 5.70 -18.8 4.06 14.0 5.0 CIMB 7.13 7.50 5.2% Hold 65,778 1.68 50.8 56.0 14.0 12.7 4.1 3.9 7.36 -3.1 4.91 45.2 9.0 HLBANK 18.64 19.30 3.5% Hold 38,130 0.84 114.2 120.9 16.3 15.4 2.4 2.4 18.80 -0.9 13.28 40.4 9.6 MAYBANK 10.18 10.50 3.1% Hold 110,252 1.01 70.6 77.4 14.4 13.2 4.9 4.9 10.24 -0.6 8.38 21.5 3.9 PBBANK 22.14 25.10 13.4% Buy 85,493 0.69 142.4 149.8 15.5 14.8 2.6 2.7 22.62 -2.1 19.66 12.6 6.5 RHBBANK 5.32 5.70 7.1% Hold 21,333 1.56 52.2 53.8 10.2 9.9 2.8 2.8 5.61 -5.2 4.71 13.0 6.4 BURSA 10.80 11.80 9.3% Buy 5,805 0.94 43.9 45.0 24.6 24.0 3.3 3.3 11.30 -4.4 8.57 26.0 6.7 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 BUILDING MATERIALS ANNJOO 3.65 4.40 20.5% Buy 1,887 1.31 45.1 48.9 8.1 7.5 6.0 7.1 3.98 -8.3 2.27 60.8 -5.4 CHINHIN 1.00 1.36 36.0% Buy 556 1.03 12.4 12.0 8.0 8.3 5.0 6.0 1.49 -32.9 0.98 2.0 -17.4 ENGTEX 1.09 1.38 26.6% Buy 464 0.83 14.2 16.1 7.7 6.8 3.8 5.0 1.52 -28.3 1.01 7.9 -0.9 GADANG 1.07 1.69 57.9% Buy 706 1.10 14.2 18.1 7.5 5.9 2.8 2.8 1.37 -21.9 1.01 5.9 -3.6 GAMUDA 5.06 6.00 18.6% Buy 12,433 0.89 34.5 35.7 14.7 14.2 2.4 2.4 5.52 -8.3 4.58 10.5 2.0 IJM 2.86 2.89 1.0% Sell 10,377 1.08 13.7 18.2 20.8 15.8 3.3 3.3 3.61 -20.8 2.66 7.5 -6.2 CONSTRUCTION KAB 0.28 0.38 33.9% Buy 9 na 31.4 37.3 0.9 0.8 3.6 4.3 0.33 -15.2 0.25 14.3 -6.7 PESONA 0.40 0.55 39.2% Buy 274 1.06 5.8 4.8 6.8 8.3 3.8 3.8 0.74 -46.3 0.39 2.6 -12.2 SENDAI 0.81 0.55 -31.7% Sell 629 1.17 9.1 8.5 8.9 9.5 1.2 1.2 1.39 -42.1 0.51 59.4 -6.9 SUNCON 2.43 2.65 9.1% Buy 3,140 0.60 14.7 16.4 16.5 14.8 2.3 2.5 2.64 -8.0 1.70 42.9 -3.2 WCT 1.62 1.64 1.2% Hold 2,279 0.86 12.6 11.2 12.8 14.5 1.9 1.9 2.48 -34.5 1.46 11.0 0.0 LITRAK 5.89 6.26 6.3% Hold 3,109 0.35 45.6 47.1 12.9 12.5 4.2 4.2 6.15 -4.2 5.40 9.1 6.1 CARLSBG 18.00 18.09 0.5% Buy 5,537 0.80 87.8 91.8 20.5 19.6 4.9 5.1 18.00 0.0 14.12 27.5 17.6 HEIM 20.50 21.64 5.6% Hold 6,193 0.38 93.0 101.3 22.0 20.2 4.1 4.4 20.54 -0.2 16.90 21.3 8.5 AEON 1.57 1.97 25.5% Sell 2,204 0.43 6.7 7.7 23.5 20.4 2.5 2.9 2.70 -41.9 1.55 1.3 -10.8 AMWAY 7.79 8.18 5.0% Buy 1,281 0.48 43.9 45.2 17.8 17.2 4.9 5.1 8.18 -4.8 7.04 10.7 5.6 F&N 30.32 33.74 11.3% Buy 11,114 0.21 122.7 145.8 24.7 20.8 2.6 3.1 31.00 -2.2 22.80 33.0 12.3 CONSUMER Brewery Retail HUPSENG 1.10 1.25 13.6% Buy 880 0.40 5.7 5.9 19.3 18.6 5.5 5.5 1.28 -14.1 1.05 4.8 0.9 JOHOTIN 1.27 1.75 37.8% Buy 394 0.69 12.8 13.5 9.9 9.4 3.9 4.3 1.76 -27.8 1.16 9.5 5.0 NESTLE 122.00 120.50 -1.2% Under Review 28,609 0.50 330.1 373.8 37.0 32.6 2.4 2.7 123.10 -0.9 75.40 61.8 18.2 PADINI 5.04 4.67 -7.3% Sell 3,316 0.79 28.0 30.4 18.0 16.6 2.5 2.6 5.50 -8.4 2.72 85.4 -4.5 POHUAT 1.55 2.01 29.7% Buy 341 0.45 22.9 25.4 6.8 6.1 5.2 5.2 2.07 -25.1 1.43 8.4 -13.4 QL 4.90 3.26 -33.5% Sell 7,950 0.55 12.8 14.7 38.2 33.3 0.9 1.0 4.98 -1.6 3.26 50.5 12.6 SIGN 0.61 0.92 50.8% Buy 140 0.75 6.9 9.2 8.8 6.7 4.1 5.7 1.07 -43.0 0.57 7.0 -13.5 30.30 34.72 14.6% Hold 8,652 1.37 170.8 168.8 17.7 17.9 5.3 5.3 49.52 -38.8 29.30 3.4 -24.3 GENTING 9.13 11.53 26.3% Buy 34,981 1.51 54.4 59.8 16.8 15.3 1.8 1.8 10.00 -8.7 8.70 4.9 -0.8 GENM 5.39 6.51 20.8% Buy 30,501 1.48 27.0 30.6 19.9 17.6 1.7 1.9 6.38 -15.5 4.87 10.7 -4.3 2.27 3.34 47.1% Buy 3,058 0.66 21.5 26.0 10.6 8.7 7.0 7.9 2.98 -23.8 2.20 3.2 1.3 CCMDBIO 2.89 2.70 -6.6% Buy 806 0.89 15.0 16.1 19.2 18.0 3.4 3.6 3.03 -4.6 1.97 46.7 14.2 IHH 6.03 6.40 6.1% Buy 49,685 0.76 11.9 15.0 50.8 40.3 0.5 0.6 6.33 -4.7 5.42 11.3 2.9 KPJ 0.95 1.12 18.5% Buy 3,984 0.51 3.7 4.2 25.2 22.7 2.2 2.4 1.14 -17.1 0.87 8.6 -2.6 HARTA 11.72 7.80 -33.4% Sell 19,392 1.16 25.2 28.9 46.5 40.6 1.3 1.5 12.18 -3.8 4.68 150.4 9.7 KOSSAN 8.70 8.80 1.1% Buy 5,563 0.50 38.3 43.0 22.7 20.2 2.2 2.5 8.79 -1.0 5.62 54.8 7.3 SUPERMX 2.57 2.70 5.1% Buy 1,685 0.41 20.0 22.6 12.9 11.4 2.6 3.0 2.58 -0.4 1.69 52.1 28.5 TOPGLOV 9.88 9.35 -5.4% Sell 12,406 0.57 41.6 50.8 23.8 19.5 1.4 1.8 10.00 -1.2 4.56 116.7 23.7 KAREX 1.12 1.00 -10.7% Sell 1,123 0.64 2.8 5.2 40.5 21.5 0.6 1.2 2.39 -53.1 1.03 8.7 -13.8 SCIENTX 8.50 9.84 15.8% Buy 4,156 0.85 67.5 74.1 12.6 11.5 2.1 2.2 9.85 -13.7 7.00 21.4 -1.8 SKPRES 1.89 2.20 16.4% Buy 2,363 0.83 10.4 14.8 18.2 12.8 2.7 3.9 2.35 -19.6 1.24 52.4 -17.1 ASTRO 2.59 3.10 19.7% Buy 13,504 0.92 14.0 13.7 18.6 18.9 5.0 5.2 2.94 -11.9 2.40 7.9 -2.3 MEDIA PRIMA 0.61 0.45 -26.2% Sell 677 1.36 -3.8 -1.7 na na 0.0 0.0 1.28 -52.3 0.58 5.2 -19.7 STAR 1.33 1.25 -6.0% Sell 981 1.10 6.7 6.7 19.8 19.8 9.0 9.0 2.22 -40.0 1.31 1.5 -19.4 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves 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 0.48 0.72 51.6% Buy 834 1.47 4.2 4.5 11.3 10.5 2.1 2.1 0.69 -31.2 0.38 26.7 -2.1 LCTITAN 5.25 6.10 16.2% Buy 11,933 na 56.3 60.9 9.3 8.6 4.8 5.1 6.53 -19.6 4.14 26.8 11.7 MHB 0.83 0.81 -1.8% Sell 1,320 1.37 0.5 1.7 171.4 49.4 0.0 0.0 1.16 -28.9 0.63 32.0 0.0 MISC 7.12 7.00 -1.7% Sell 31,782 1.14 50.1 53.8 14.2 13.2 4.2 4.2 7.90 -9.9 6.89 3.3 -4.0 PANTECH 0.63 0.69 10.4% Buy 466 1.25 6.1 6.8 10.3 9.2 4.4 4.9 0.74 -15.5 0.47 34.4 -3.1 PCHEM 8.14 8.84 8.6% Hold 65,120 0.89 52.5 53.8 15.5 15.1 3.2 3.2 8.28 -1.7 6.80 19.7 5.7 SAPNRG 0.69 1.25 81.2% Buy 4,135 2.01 -6.5 -5.0 na na 0.0 0.0 2.10 -67.1 0.66 4.5 -2.8 SERBADK 3.47 4.16 19.9% Buy 5,096 na 27.7 32.7 12.5 10.6 2.3 2.9 3.66 -5.2 1.63 112.9 7.1 UMWOG 0.34 0.51 52.2% Buy 2,752 1.75 0.4 1.2 82.9 27.0 0.0 0.0 0.69 -51.3 0.27 24.1 9.8 UZMA 1.35 1.56 15.6% Sell 432 0.88 13.1 14.2 10.3 9.5 0.0 0.0 1.98 -31.8 1.26 7.1 5.5 FGV 2.03 2.01 -1.0% Sell 7,406 1.48 3.7 4.5 54.8 44.7 2.5 2.5 2.18 -6.9 1.51 34.4 20.1 IJMPLNT 2.30 2.69 17.0% Sell 2,025 0.18 9.1 12.5 25.2 18.3 3.5 3.9 3.40 -32.4 2.28 0.9 -16.1 IOICORP 4.76 4.12 -13.4% Sell 29,911 0.90 21.0 21.7 22.6 22.0 3.4 6.3 4.81 -1.0 4.31 10.4 4.8 KFIMA 1.54 1.89 22.7% Buy 435 0.69 13.3 14.5 11.6 10.6 5.8 5.8 1.96 -21.4 1.45 6.2 -1.9 KLK 25.50 27.07 6.2% Hold 27,157 0.62 120.7 125.7 21.1 20.3 2.4 2.4 25.78 -1.1 23.66 7.8 2.0 SIMEPLT 5.53 6.25 13.0% Buy 37,609 na 21.0 22.1 26.3 25.1 2.5 2.7 6.00 -7.8 4.58 20.7 -7.8 TSH 1.59 2.10 32.1% Buy 2,195 0.54 9.3 9.6 17.1 16.6 1.5 1.5 1.91 -16.8 1.56 1.9 -3.6 UMCCA 6.30 6.73 6.8% Sell 1,321 0.40 22.7 34.8 27.7 18.1 2.7 2.9 7.08 -11.0 5.76 9.3 -3.2 GLOMAC 0.51 0.46 -9.8% Sell 405 0.71 3.0 4.4 17.2 11.5 3.9 3.9 0.67 -24.2 0.50 3.0 -8.0 HUAYANG 0.60 0.58 -2.5% Sell 209 0.90 0.7 3.4 91.1 17.5 0.8 0.8 1.17 -49.1 0.58 3.5 -2.5 IBRACO 0.70 0.92 31.4% Hold 347 na 9.1 12.4 7.7 5.6 5.7 7.1 0.98 -28.2 0.50 40.0 -14.1 IOIPG 2.02 2.02 0.0% Hold 11,122 0.84 16.5 16.3 12.2 12.4 3.0 3.0 2.22 -9.0 1.79 12.8 9.2 MAHSING 1.22 1.69 38.5% Buy 2,962 0.93 13.0 12.6 9.3 9.7 5.3 5.3 1.64 -25.6 1.21 0.8 -15.9 PLANTATIONS PROPERTY SIMEPROP 1.44 1.61 11.8% Sell 9,793 na 9.2 9.1 15.7 15.8 1.4 1.4 1.78 -19.1 1.04 38.5 -19.1 SNTORIA 0.64 0.76 18.8% Buy 361 0.11 8.3 8.6 7.7 7.5 1.6 1.6 0.91 -29.6 0.56 14.3 -7.9 SPB 4.90 5.28 7.8% Hold 1,684 0.68 21.2 26.1 23.2 18.7 2.4 2.4 5.50 -10.9 4.39 11.6 0.0 SPSETIA 3.27 3.77 15.3% Buy 12,273 0.95 21.3 21.9 15.3 15.0 3.7 3.7 4.38 -25.4 3.07 6.5 -18.3 SUNWAY 1.63 1.74 6.7% Hold 7,980 0.92 11.9 12.6 13.7 12.9 3.1 3.7 1.96 -16.8 1.31 24.3 0.0 SUNREIT 1.74 1.87 7.5% Hold 5,124 0.86 10.0 10.7 17.3 16.3 5.8 6.1 1.90 -8.4 1.64 6.1 -8.4 CMMT 1.10 1.64 49.1% Buy 2,242 0.69 7.9 8.6 13.9 12.7 7.5 8.1 1.83 -39.9 1.09 0.9 -39.9 REIT POWER & UTILITIES MALAKOF 0.91 0.82 -9.9% Sell 4,531 0.89 6.6 7.2 13.8 12.7 7.7 7.7 1.30 -30.0 0.86 5.8 -7.1 PETDAG 25.42 22.08 -13.1% Sell 25,254 0.39 105.1 105.7 24.2 24.0 3.1 3.1 26.20 -3.0 21.00 21.0 4.8 PETGAS 17.90 19.10 6.7% Buy 35,419 0.87 98.8 99.5 18.1 18.0 3.9 3.9 20.96 -14.6 15.82 13.1 2.4 TENAGA 15.70 18.33 16.8% Buy 88,956 0.56 131.3 127.5 12.0 12.3 4.4 4.1 16.12 -2.6 13.44 16.8 2.9 YTLPOWR 1.22 1.17 -4.1% Sell 9,484 0.90 9.8 10.3 12.4 11.9 4.1 4.1 1.50 -18.7 1.11 9.9 -5.4 TELECOMMUNICATIONS AXIATA 5.68 6.50 14.4% Buy 51,394 1.55 15.9 19.5 35.6 29.2 1.4 2.8 5.82 -2.4 4.24 34.0 3.5 DIGI 4.94 5.15 4.3% Hold 38,409 0.94 19.7 20.4 25.1 24.3 4.0 4.1 5.19 -4.8 4.36 13.3 -3.1 MAXIS 6.11 6.05 -1.0% Sell 47,723 1.09 25.2 25.0 24.2 24.4 3.1 3.1 6.60 -7.4 5.48 11.5 1.7 TM 6.00 7.20 20.0% Buy 22,548 0.64 23.2 24.9 25.9 24.1 3.5 3.7 6.69 -10.3 5.85 2.6 -4.8 ELSOFT 2.63 2.70 2.7% Hold 723 0.73 13.4 15.3 19.6 17.2 3.6 4.1 2.95 -10.8 1.58 66.3 -2.6 IRIS 0.19 0.25 31.6% Buy 470 2.40 0.6 0.7 34.3 28.5 0.0 0.0 0.25 -22.4 0.12 65.2 2.7 INARI 3.46 3.35 -3.2% Under Review 7,148 0.71 14.0 15.7 24.7 22.1 2.9 3.3 3.82 -9.4 1.86 86.4 1.8 TECHNOLOGY Semiconductor & Electronics Note: INARI proposed bonus issue shares on the basis of 1 for 2. For more detail please refer to 30.01.18 report. MPI 9.99 10.70 7.1% Hold 1,987 0.70 73.9 86.9 13.5 11.5 3.2 3.2 14.52 -31.2 8.62 15.9 -20.8 UNISEM 2.96 3.25 9.8% Under Review 2,172 1.11 19.0 20.3 15.6 14.6 4.1 4.1 4.25 -30.4 2.52 17.5 -18.9 TRANSPORTATION Airlines AIRASIA 4.31 3.83 -11.1% Buy 14,403 1.34 38.3 39.8 11.3 10.8 1.2 1.4 4.38 -1.6 2.58 67.1 28.7 AIRPORT 8.89 8.61 -3.1% Sell 14,750 1.31 17.9 18.7 49.8 47.6 1.5 1.1 9.45 -5.9 6.35 40.0 1.1 Freight & Tankers PTRANS 0.30 0.46 53.3% Buy 378 na 2.4 3.8 12.6 7.9 2.3 3.6 0.38 -21.4 0.15 100.0 7.1 TNLOGIS 1.13 1.80 59.3% Buy 516 1.09 13.6 14.0 8.3 8.0 4.4 4.4 1.83 -38.4 1.10 2.7 -15.7 WPRTS 3.64 4.06 11.5% Buy 12,412 0.49 15.6 20.0 23.3 18.2 1.0 1.3 4.19 -13.1 3.12 16.7 -1.6 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 29.45 30.50 3.6% Buy 75,506 1.19 212.8 246.6 13.8 11.9 2.2 2.4 29.5 -0.1 18.47 59.4 18.5 OCBC 13.00 14.50 11.5% Buy 54,413 1.22 109.5 123.2 11.9 10.6 6.7 7.7 13.3 -2.4 9.42 38.0 4.9 UOB 27.60 27.80 0.7% Hold 45,887 1.16 216.6 243.9 12.7 12.7 2.9 2.9 28.5 -3.0 21.30 29.6 4.3 PLANTATIONS WILMAR 3.08 3.63 17.9% Hold 19,707 0.81 29.9 31.8 10.3 9.7 2.6 2.9 3.9 -20.4 2.97 3.7 -0.3 IFAR 0.36 0.53 47.2% Hold 516 0.99 5.2 5.7 6.9 6.3 3.5 3.9 0.5 -33.9 0.35 2.9 -7.7 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
12. RESULTS UPDATE Thursday , February 22, 2018 FBMKLCI: 1,858.17 Sector: Power & Utilities THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Malakoff Corporation Berhad TP: RM0.82 (-9.8%) Last Traded: RM0.91 Tg. Bin Energy is Down Again Kylie Chan Sze Zan Tel: +603-2167 9601 Sell kyliechan @ta.com.my Review Malakoff Corporation Berhad’s (MLK) FY17 core net profit of RM368mn (+5% YoY) exceeded our expectations and consensus by 17%/18%. Nevertheless, we expect FY18 profits to be weaker due to the full-year impact of lower Capacity Payment (CP) at Segari Energy Ventures (SEV), which will more than offset lower taxes. Disappointingly, TBE experienced a boiler tube leak problem in Nov-17. This led to yet another forced outage (FO) for rectification works throughout Dec-17. Therefore, we understand that the group recognized provisions of an undisclosed amount in 4Q17 for penalty payments due to Tenaga. Accordingly, TBE’s availability rate and capacity factor plunged to 46% and 39% respectively in 4Q17 (3Q17: 87%/100%). This was on the back of rectification works to replace damaged tubes and remove debris from inside the boiler system. According to management, the impact on FO rate and reduction in CP was mitigated by rescheduling some planned outage exercises. www.taonline.com.my Share Information Bloomberg Code MLK MK Stock Code 5264 Listing Main Market Share Cap (mn) 5,000 Market Cap (RMmn) 4,531 Par Value (RM) 0.10 52-wk Hi/Lo (RM) 1.30/0.86 12-mth Avg Daily Vol ('000 shrs) 5,969.0 Estimated Free Float (%) 16.0 Beta 0.83 Major Shareholders (%) MMC - 37.7 EPF - 11.7 LTH - 10.2 Forecast Revision (%) FY18 Forecast Revision (%) Core Net Profit (RM mn) FY19 9.9 5.6 329.1 358.6 Consensus 293.3 319.4 TA/Consensus (%) 112.2 112.3 Previous Rating Buy (Downgraded) Scorecard % of FY Key earnings drivers in FY17 that led to bottomline expansion include: 1) higher fuel margin (RM35mn) for Malakoff’s coal plants (TBE and Tg. Bin Power (TBP)), 2) full-year contribution from TBE (FY16: 9 months), 3) surge in associates’ contribution, which almost quintupled, 4) lower amortization of SEV intangibles (RM80mn), and 5) higher finance income (RM19mn). vs TA * 117 Above vs Consensus 118 Above FY18 FY19 The above more than offset lower CP for SEV, which resulted in PATMI erosion of RM216mn. Recall that SEV’s new 10-year PPA extension (start: Jul-17) translates to a 50%-70% step-down on levelised tariffs. This was evident from its dip in CP to RM439mn in FY17 (FY16: RM743mn). Additionally, lower contribution from TBE due to unscheduled plant outages shaved RM75mn from FY17 bottomline. FY17 associates’ contribution surged 370% YoY, mainly due to improved contribution from Shuaibah Saudi Arabia, Hidd Power Bahrain, and Almiyah Algeria. Recall that in 4Q16, Almiyah recognised chunky legal provisions of RM36mn (Malakoff’s portion according to 36% effective interest) for alleged FX breach. Excluding this one-off provision, associate contribution would have increased by a lesser extent (+80%). FY17 exceptional one-offs include: 1) compensation payment from settlement of disputes with IHI Corp Japan over TBP’s boiler failure (estimate: RM75mn), 2) under provision of prior year taxes (RM60mn), 3) insurance claim for Unit 5 of associate, Kapar Energy Ventures (RM20mn), 4) TBE penalty payment provisions, and 5) FX losses (RM9.4mn). Financial Indicators Net Debt/Equity (x) 2.1 1.8 ROA (%) 1.2 1.3 ROE (%) 5.6 6.1 NTA/Share (RM) 0.5 0.5 P/NTA (x) 1.8 1.8 Share Performance Price Change (%) MLK FBMKLCI 1 mth (3.7) 1.4 3 mth (8.1) 7.8 6 mth (14.2) 4.7 12 mth (24.2) 8.8 (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 3
13. 22-Feb-18 We view it as a major setback that TBE lapsed into FO in Nov-17 , after its first outage was rectified in May-17. This would have likely resulted in its current Unscheduled Outage Rate (UOR) far exceeding threshold limits. To recap, if TBE experiences forced outages, CP will be forfeited, and penalties are due if UOR exceeds stipulated limits (6%/8%). 4Q17 preemptive provisions likely reflect this scenario. The group declared a final DPS of 3.7 sen (4Q16: 3.5 sen), which brings the total FY17 DPS to 6.2sen/share (FY16: 7 sen). This implies 100% payout (FY16: 98%). Impact Key changes to our forecasts include:- 1) introduced FY20F earnings, 2) lowered CP for TBE in FY18, 3) lowered taxes in FY18-19, and 4) reduced interest expense in FY18-19. As a result, our earnings forecast for FY18/19 is raised by 10%/6%. Valuation In spite of our earnings revision, our DCF value for TBE is significantly lower after we account for higher maintenance capex and working capital for rectification works. Additionally, we incorporate FY17 unaudited figures. Coupled with other housekeeping measures, this results in our TP being lowered to RM0.82 (previous: RM1.16). We downgrade Malakoff to Sell (previous: Buy). Failure to maintain stable operations at TBE is a major concern and disappointment. This is given the fact that TBE is MLK’s key income and cash flow generating asset after TBP. Uncertainty surrounding TBE will likely loom over MLK and drag on sentiment and earnings. Furthermore, we believe UOR would likely require a prolonged time to recover in order for CP to normalize. Table 1: Earnings Summary FYE Dec (RM mn) 2016 2017 2018E 2019F 2020F Revenue 6,098.4 7,130.4 7,079.3 7,074.7 7,016.6 E B ITDA 2,830.5 46.4 2,689.9 37.7 2,598.0 36.7 2,468.3 34.9 2,347.0 33.4 P reta x P rofit 637.5 588.5 622.8 681.9 740.7 Reported Net P rofit 355.5 310.0 329.1 358.6 387.3 350.5 368.4 329.1 358.6 387.3 7.0 7.4 6.6 7.2 7.7 (% ) (20.2) 5.1 (10.7) 9.0 8.0 (x) 12.8 14.7 13.8 12.7 11.7 (s en) (% ) 7.0 7.7 6.2 6.8 7.0 7.7 7.0 7.7 7.0 7.7 E B ITDA ma rg in (% ) Core Net P rofit Core E P S Core E P S g rowth PER DP S Dividend Yield (s en) Page 2 of 3
14. 22-Feb-18 Table 2 : FY17 Results Analysis Cumulative FYE 31 Dec (RM mn) 4Q17 Revenue Operating cost 3Q17 1,793.4 1,821.4 (1,479.9) (1,482.2) EBITDA Depreciation & amortisation EBIT Interest income Finance cost Associates & JV 1,713.5 QoQ YoY (1.5) 4.7 FY17 FY16 % Chg 7,130.4 6,098.4 16.9 35.9 (937.2) (0.2) 57.9 (4,440.5) (3,267.9) 636.0 671.1 776.3 (5.2) (18.1) 2,689.9 2,830.5 (5.0) (305.9) (302.4) (360.0) 1.2 (15.0) (1,313.0) (1,396.2) (6.0) 330.1 368.7 416.3 (10.5) (20.7) 1,376.9 1,434.3 (4.0) 57.1 52.4 55.0 9.0 3.9 (253.4) (241.2) (275.4) 5.1 (8.0) 5.2 Exceptional items 4Q16 (91.1) 23.0 (1.4) (77.3) >-100 213.3 (1,032.6) 89.2 191.2 (1,012.0) 11.6 2.0 19.0 >100 10.0 1.2 >-100 >-100 (58.4) 5.0 >-100 47.9 212.9 195.7 (77.5) (75.5) 588.5 637.5 (7.7) Taxation 10.1 (126.2) (8.6) Profit after tax 58.0 86.7 Minority interest (14.3) Pre-tax profit Net Profit Core Net Profit (90.4) >-100 >-100 (211.6) (231.5) 105.4 (33.1) (44.9) 376.9 406.0 (7.2) (22.5) (15.1) (36.5) (5.6) (67.0) (50.6) 32.4 43.7 64.2 90.2 (31.9) (51.5) 310.0 355.5 (12.8) 134.8 54.2 89.0 >100 51.4 368.4 350.5 5.1 >100 51.4 5.1 Core EPS (sen) 2.7 1.1 1.8 7.4 7.0 DPS (sen) 3.7 0.0 3.5 6.2 7.0 35% 37% 45% 0.4 0.4 8% 3% 5% 0.1 0.1 EBITDA Margin Core Net Margin Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Thursday, February 22, 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 – 2032 5048 www.ta.com.my Page 3 of 3
15. RESULTS UPDATE Thursday , February 22, 2018 FBMKLCI: 1,858.17 Sector: Transportation THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM8.61 (-3.1%) Malaysia Airports Holdings Berhad Last Traded: RM8.89 More Uncertainty Lies Ahead Tan Kam Meng, CFA Tel: +603-2167 9605 SELL kmtan@ta.com.my Review MAHB’s FY17 core profit of RM287.9mn was below our expectations but higher than consensus estimates, at 88% and 108% of full-year forecast respectively. The variance was largely due to higher-than-expected interest expense. FY17 staged a strong rebound from a low base in FY16, with the rise in passenger movement of 8.5% YoY to 96.4mn passengers in Malaysia, providing additional revenue from airport tax collection (+17%), duty free sales (+13.5) and F&B revenue. Coupled with normalisation of tax rate to 25% in FY17, FY17 core profit more than doubled to RM287.9mn. QoQ, 4Q17 core earnings contracted by a whopping 68.3% to RM33.1mn despite a marginal drop in revenue by 1.9% to RM1.2bn. The decline in earnings or margin contraction was mainly due to provision for staff bonus. Note that Malaysia 4Q17 staff cost was 25.9% or RM43mn higher than the preceding quarter. For this quarter, the group has proposed a final single tier dividend of 8sen/share, bringing the YTD total dividend to 13sen/share. This was 3sen higher than FY16. Impact We cut our FY18-19 earnings projections by 7.3-9.5% to factor in higher interest expense. Meanwhile, we keep our passenger growth assumption of 3% for FY18 versus management’s target of 6.3%. Briefing Highlights The group announced its 2018 KPIs where MAHB expects to achieve EBITDA of RM2.1bn this year. This is approximately 9.5% higher than FY17 EBITDA of RM1.91bn. In terms of breakdown, management expects the international sector to expand by 8.3% and contribute positively to revenue mix and drive duty free sales higher. Also, the group would implement cost optimisation to reduce operating costs. We project lower FY18 EBITDA of RM1.96bn on the back of lower traffic volume as opposed to the company’s KPIs. As far as the new tariff framework and regulations are concerned, it is still in the early days to the implementation of the pilot scheme in 2019 and the full scheme by 2020. MAVCOM has initiated several development and consultation process and will release a second consultation paper in 2H18. Essentially, MAVCOM is developing a cost-based airport aeronautical charges setting framework, which allow for a return on capital invested, depreciation of assets and operating costs, as well as commercial revenue. MAHB believes that the new framework would not have significant negative impact on the bottomline. www.taonline.com.my Share Information Bloomberg Code MAHB MK Stock Code 5014 Listing Main Market 1659.2 Share Cap (mn) 14750.3 Market Cap (RMmn) 1.0 Par Value 9.45/6.35 52-wk Hi/Lo (RM) 3826.0 12-mth Avg Daily Vol ('000 shrs) 55.8 Estimated Free Float (%) 1.3 Beta Major Shareholders (%) Khazanah -33.2 EPF - 11.0 Forecast Revision FY18 Forecast Revision (%) FY19 (9.5) (7.3) Net profit (RMm) 299.9 315.6 Consensus 405.7 549.1 73.9 57.5 Sell (Maintained) FY18 FY19 TA's / Consensus (%) Previous Rating Financial Indicators Net Gearing (%) 6.9 2.1 CFPs (sen) 173.8 35.6 P/CFPS (x) 5.1 24.9 ROE (%) 3.3 3.3 (4.5) nm (4.1) nm NTA/Share (RM) Price/NTA (x) Scorecard % of FY vs TA vs Consensus Share Performance (%) Price Change 88 108 Below Above MAHB FBM KLCI 1 mth (1.2) 1.4 3 mth 8.4 7.8 4.8 4.7 34.3 8.8 6 mth 12 mth (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 4
16. 22-Feb-18 However , the jury is still out on the qualifying capex and opex to regulated asset base (RAB) calculation and the implication on the user fee. Also, the regulatory cycle (3 or 5 years) to the next PSC adjustment is still unclear. We are of the opinion that the new framework would drive operating efficiency, thus benefiting MAHB’s future earnings. However, a supernormal growth in future earnings is highly unlikely as the group’s bottomline would be “regulated.” We believe the main concerns would be on future capex, which is a function to RAB, and its implication on the company’s capital structure and dividend policy. FCFE FCFE valuation Rf Rm Beta CAP M 3% 9% 1.28 10.7% P V of future F CF E - P erpectua l S ukuk S ha re outs ta nding (mn s ha re) FCFE/s hare 15287.6 1000.0 1659.19 8.61 Valuation We reduce MAHB’s DCF valuation to RM8.61/share (from RM8.64/share previously), based on unchanged discount rate of 10.7%. A smallish EPS and tiny yield continue to suggest pricey valuation at forward PE of 55x and unattractive dividend yield of 1.5%. Maintain Sell. Earnings Summary (RMmn) FYE Dec 31 2016 2017 Revenue 4172.8 4594.4 E BITDA 1709.9 1910.9 E BITDA Ma rg in (% ) 41.0 41.6 P rofit before ta x 211.9 385.9 Core Net P rofit 99.0 287.9 E P S (sen) 1.3 13.2 E P S g rowth (% ) >-100 >100 P E R (x) nm 67.5 GDP S (s en) 10.0 13.0 Div yield (% ) 1.1 1.5 E V/E BITDA (x) 11.0 9.3 ROE (% ) 1.1 3.3 * E P S is further adjus ted for the dis tribution to perpetual S ukuk holders 4QFY17 Results Analysis (RM’mn) FYE Dec (RM mn) Revenue* EBITDA* EBIT Finance Costs Assoc and JVs Core PBT* Tax Reported Net Profit Core Profit* Core EPS* (sen) DPS (sen) EBITDA Margin (%) Core PBT Margin (%) Core Net Margin (%) Effective Tax Rate (%) 2018F 4676.8 1960.2 41.9 349.1 299.9 16.1 22.3 55.2 13.0 1.5 7.9 3.3 2019F 4995.7 2001.7 40.1 389.6 315.6 15.4 (4.6) 57.8 10.0 1.1 7.6 3.3 2010F 5228.2 2168.5 41.5 571.8 428.9 22.1 43.9 40.2 10.0 1.1 6.7 4.4 4Q16 1080.0 374.9 278.1 (195.4) 2.0 87.0 (47.5) 33.3 35.7 0.5 6.0 3Q17 1212.0 557.3 270.7 (184.5) 4.5 115.4 (11.0) 79.7 104.4 5.1 0.0 4Q17 1188.9 437.7 239.7 (193.4) 5.2 56.8 (23.7) 27.9 33.1 0.2 8.0 QoQ (%) (1.9) (21.5) (11.4) 4.8 16.3 (50.8) 114.7 (65.0) (68.3) (95.2) nm YoY (%) 10.1 16.7 (13.8) (1.0) >100 (34.7) (50.2) (16.4) (7.2) (52.7) 33.3 FY16 4172.8 1709.1 857.4 (689.8) 15.7 208.5 (110.2) 70.4 99.0 1.3 10.0 FY17 4594.4 1910.9 1030.0 (716.2) 20.6 385.9 (97.4) 236.5 287.9 13.2 13.0 YoY (%) 10.1 11.8 20.1 3.8 31.1 85.1 (11.6) >100 >100 >100 30.0 34.7 8.1 3.3 54.6 46.0 9.5 8.6 9.6 36.8 4.8 2.8 41.7 %-pts 2.8 0.3 1.7 (15.7) %-pts 2.0 5.0 7.1 (56.5) 41.6 5.0 2.3 52.8 43.1 8.4 6.3 25.2 %-pts 1.5 3.4 4.0 (27.6) * Excludes Construction Revenue & profit under IC12 Page 2 of 4
17. 0 .0 0.0 RM 20.0 MAHB Eraman sales Eraman sales/pax RM'mn 250.0 mn pax 16.0 No of pax 3Q17 ISG 1Q17 Aeronautical revenue Nov-17 Sep-17 Jul-17 May-17 Mar-17 Jan-17 Nov-16 Sep-16 Jul-16 May-16 Mar-16 Jan-16 Nov-17 Sep-17 - 3Q16 MAHB Jul-17 May-17 5.0% 1Q16 50.0 Mar-17 15.0% Pass. Movement (LHS) 3Q15 100.0 Jan-17 4.0 1Q15 100.0 Nov-16 mn 3Q14 200.0 Sep-16 20.0% 5.0 1Q14 300.0 Jul-16 2.0 25.0% 3Q13 400.0 YoY growth (RHS) 1Q13 500.0 Non-ASEAN 3Q12 150.0 ASEAN 1Q12 RM'mn 700.0 May-16 5.0 1.8 1.7 1.8 1.7 1.7 1.6 2.0 2.0 1.9 1.8 1.8 2.3 2.2 1.9 2.0 2.1 2.1 1.9 2.2 2.4 2.0 2.1 2.1 2.5 'mn 6.0 3Q11 200.0 1.7 1.7 1.8 1.7 1.8 1.7 1.9 1.8 1.7 1.8 1.8 2.1 1.9 1.8 1.9 2.0 1.9 1.9 2.1 2.0 1.9 2.0 1.9 2.3 International - MAHB 1Q11 600.0 Mar-16 Jan-16 1.0 204.6 216.3 218.4 249.6 241.6 250.3 256.0 288.8 274.2 304.4 299.1 333.3 334.7 321.5 335.6 348.9 88.9 332.6 110.6 348.3 152.4 357.8 124.9 383.8 118.7 384.7 120.3 372.7 138.3 393.7 121.4 412.7 116.0 410.8 136.6 404.4 173.4 431.5 138.2 442.7 3.0 99.8 101.6 100.9 114.3 117.0 112.1 115.3 133.6 125.6 123.1 132.9 151.1 139.6 121.5 116.6 152.9 137.0 137.4 144.3 172.1 160.6 151.9 153.9 181.6 176.9 179.3 180.1 199.0 22-Feb-18 Figure 1 & 2: Passenger movement Domestic - MAHB YoY growth (RHS) 4.5 10.0% Ave sales per pax 10.0 6.0 20.0% 15.0% 4.0 10.0% 3.5 5.0% 0.0% 3.0 0.0% -5.0% -5.0% 2.5 -10.0% Figure 3 & 4: Aeronautical revenue/passenger Aeronautical revenue/pax 18.0 ISG 16.0 14.0 12.0 10.0 8.0 Figure 5 & 6: Eraman sales - MAHB RM 14.0 14.0 12.0 12.0 10.0 8.0 8.0 6.0 4.0 4.0 2.0 2.0 0.0 0.0 Source: MAHB & TA Securities Page 3 of 4
18. 22-Feb-18 Figure 7 & 8: Rentals & royalties - MAHB Sq meter 45000.0 40000.0 35000.0 30000.0 25000.0 20000.0 15000.0 10000.0 5000.0 0.0 Retail space (LHS) RM/sf 350.0 Rental psf (RHS) 300.0 250.0 200.0 150.0 100.0 50.0 4Q17 3Q17 2Q17 1Q17 4Q16 3Q16 2Q16 1Q16 4Q15 3Q15 2Q15 1Q15 4Q14 3Q14 0.0 2Q14 93.8 82.9 89.0 85.9 76.7 69.2 67.3 71.7 74.6 67.1 Rentals & royalties psf 56.3 69.9 67.2 62.9 RM'mn 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 58.1 Rentals & royalties Source: MAHB & TA Securities Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Thursday, February 22, 2018, the analyst, Tan Kam Meng, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
19. Thursday , 22 February, 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 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
20. Technical View Thursday , February 22, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,858.17 (+2.18, +0.12%) Chartist: Stephen Soo Close Name 21/Feb FBMKLCI 1858.17 Tel: +603-2167 9607 Change High Low 2.18 1,860.43 1,852.14 Bollinger Bands RSI stsoo@ta.com.my Moving Averages www.taonline.com.my DMI MACD DMI Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff 1,811.25 1,842.88 1,874.51 60.29 1,835.81 1,836.64 1,803.80 36.83 27.49 29.76 9.34 9.96 11.60 (1.640) BUY 0.018 MACD Recent Signal DMI MACD Signal Change SELL - - AFFIN 2.48 0.04 2.49 2.44 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 BUY BUY - - ABMB 4.10 0.00 4.13 4.08 4.04 4.21 4.38 45.09 4.14 4.19 4.12 20.28 19.08 25.75 1.20 0.00 0.02 (0.021) BUY SELL - - AMBANK 4.63 -0.01 4.70 4.56 4.30 4.62 4.94 54.97 4.48 4.63 4.51 26.04 24.65 24.10 1.39 -0.01 0.00 (0.007) BUY SELL - - AXIATA 5.68 0.01 5.69 5.63 5.39 5.58 5.76 59.42 5.54 5.58 5.50 36.63 15.06 37.83 21.57 0.03 0.02 BUY BUY - - CIMB 7.13 0.01 7.13 7.04 6.77 7.01 7.26 61.21 6.99 6.93 6.69 30.39 17.67 39.37 12.71 0.09 0.11 (0.017) BUY SELL - - DIGI 4.94 0.05 4.94 4.85 4.76 4.89 5.02 52.75 4.84 4.86 4.84 23.21 17.83 13.09 5.38 0.01 0.01 (0.003) BUY SELL - - GAMUDA 5.06 0.01 5.08 5.01 4.79 5.06 5.32 52.77 4.95 5.06 4.98 29.96 18.36 21.44 11.59 -0.01 -0.01 (0.004) BUY SELL - - GENTING 9.13 0.00 9.21 9.02 8.62 9.31 9.99 46.80 8.99 9.35 9.23 20.85 22.43 22.79 -1.59 -0.10 -0.07 (0.025) SELL SELL - - GENM 5.39 -0.11 5.48 5.39 5.22 5.44 5.66 53.44 5.36 5.49 5.50 26.49 22.83 15.26 3.67 -0.03 -0.04 BUY BUY - BUY IHH 6.03 -0.10 6.19 6.02 5.87 6.00 6.14 66.09 6.00 5.97 5.90 26.66 14.65 20.43 12.02 0.05 0.04 0.013 BUY BUY - - IOICORP 4.76 0.01 4.76 4.74 4.62 4.68 4.74 66.88 4.69 4.67 4.60 17.39 22.16 17.95 -4.77 0.03 0.03 0.002 SELL BUY - - MALAKOFF 0.91 -0.03 0.94 0.91 0.89 0.93 0.98 50.15 0.92 0.95 0.93 20.15 22.82 16.94 -2.67 -0.02 -0.01 (0.003) SELL SELL - - MAXIS 6.11 0.00 6.11 5.92 5.91 6.04 6.17 57.03 6.02 6.03 6.00 22.72 23.19 19.28 -0.47 0.01 0.01 SELL BUY SELL - 10.18 0.04 10.20 10.12 9.86 10.04 10.23 66.37 10.08 9.98 9.78 24.74 18.08 36.98 6.65 0.09 0.10 (0.009) BUY SELL - - 1.26 0.06 1.31 1.20 1.14 1.19 1.25 54.46 1.18 1.19 1.13 20.99 17.87 14.63 3.11 0.01 0.01 (0.002) BUY SELL - - MAYBANK MBSB 0.007 0.005 0.005 RHBBANK 5.32 0.09 5.32 5.23 5.06 5.30 5.54 50.24 5.20 5.26 5.13 25.38 24.18 22.35 1.19 0.01 0.03 (0.018) BUY SELL - - SIME 2.73 0.01 2.82 2.71 2.58 2.82 3.06 50.55 2.72 2.79 2.55 29.55 20.67 32.80 8.88 0.02 0.06 (0.040) BUY SELL - - 15.70 -0.02 15.76 15.68 15.64 15.78 15.92 51.25 15.73 15.77 15.58 18.36 20.45 19.26 -2.09 0.04 0.06 (0.027) SELL SELL - - TM 6.00 0.00 6.04 5.99 5.90 6.05 6.20 46.59 6.03 6.05 6.08 24.81 20.52 15.69 4.29 -0.01 -0.01 0.003 BUY BUY - - WPRTS 3.64 -0.04 3.65 3.54 3.31 3.54 3.78 57.26 3.57 3.53 3.56 20.83 18.55 14.31 2.28 0.03 0.00 0.028 BUY BUY - - AIRASIA 4.31 0.01 4.36 4.25 3.97 4.17 4.37 64.58 4.19 4.04 3.74 30.94 20.58 31.04 10.36 0.14 0.15 (0.012) BUY SELL - - AIRASIA X 0.41 0.01 0.42 0.41 0.37 0.40 0.42 56.14 0.39 0.39 0.37 28.25 17.91 29.58 10.35 0.00 0.01 (0.002) BUY SELL - - ARMADA 0.85 -0.01 0.85 0.84 0.80 0.84 0.88 56.92 0.83 0.84 0.81 25.41 20.73 17.64 -22.59 0.01 0.01 (0.001) SELL SELL - - BINAPURI 0.33 0.01 0.33 0.33 0.31 0.33 0.35 43.98 0.32 0.34 0.34 10.56 33.14 28.74 6.31 -0.01 -0.01 (0.000) BUY SELL - - CMSB 4.36 0.02 4.37 4.33 3.95 4.19 4.43 64.55 4.19 4.15 3.99 27.89 21.58 21.08 0.42 0.08 0.08 0.007 BUY BUY - - DIALOG 2.66 -0.02 2.68 2.63 2.57 2.65 2.72 56.84 2.65 2.65 2.58 21.71 21.29 21.39 0.42 0.03 0.02 0.001 BUY BUY - - ECO WORLD 1.34 -0.02 1.37 1.34 1.35 1.40 1.45 33.46 1.38 1.41 1.42 8.34 28.52 28.93 -20.18 -0.02 -0.01 (0.003) SELL SELL - - EKOVEST 1.02 0.01 1.03 0.99 0.93 1.01 1.08 50.23 0.99 1.04 1.00 26.53 20.93 20.31 5.60 0.00 -0.01 BUY BUY - - GADANG 1.07 0.01 1.09 1.06 1.01 1.11 1.20 40.35 1.06 1.11 1.10 15.52 22.90 28.86 -7.38 -0.02 -0.01 (0.006) SELL SELL - - HSL 1.63 0.00 1.63 1.62 1.47 1.58 1.68 63.83 1.58 1.54 1.50 33.67 20.69 16.23 12.98 0.03 0.03 (0.000) BUY SELL - - ISKANDAR 1.35 0.00 1.35 1.34 1.32 1.36 1.39 47.36 1.34 1.37 1.36 15.17 20.28 25.29 -5.11 -0.01 -0.01 (0.001) SELL SELL - - KIMLUN 2.15 0.00 2.15 2.15 2.11 2.22 2.32 33.29 2.17 2.23 2.25 27.42 44.79 25.15 -17.37 -0.03 -0.03 (0.008) SELL SELL - - KKBE 0.95 0.02 0.98 0.95 0.88 0.95 1.01 45.40 0.92 0.96 0.97 39.78 24.94 20.68 14.84 -0.01 -0.01 BUY BUY - BUY MUDAJAYA 0.88 0.00 0.88 0.88 0.82 0.90 0.97 45.45 0.88 0.90 0.91 28.87 21.99 15.79 6.88 -0.01 -0.01 (0.000) BUY SELL - - MRCB 1.16 0.02 1.21 1.12 1.04 1.15 1.27 49.08 1.11 1.18 1.15 20.25 27.94 24.74 -7.69 -0.01 -0.01 (0.002) SELL SELL - - NAIM 1.02 0.01 1.04 1.02 0.97 1.04 1.10 39.22 1.02 1.08 1.09 25.14 23.12 16.42 2.02 -0.03 -0.03 0.001 BUY BUY BUY BUY 0.003 TENAGA 0.002 0.000 SAPURA ENERGY 0.69 -0.01 0.70 0.69 0.63 0.74 0.85 39.66 0.69 0.78 0.78 18.57 26.24 28.10 -7.67 -0.04 -0.05 SELL BUY - - SUNCON 2.43 -0.01 2.48 2.42 2.40 2.50 2.60 41.22 2.47 2.52 2.48 18.81 17.59 16.26 1.22 -0.01 0.00 (0.013) BUY SELL - - UEMS 1.15 0.03 1.16 1.12 1.05 1.13 1.21 49.93 1.10 1.14 1.11 18.85 14.50 14.81 4.34 -0.01 0.00 (0.003) BUY SELL - - UMWOG 0.34 0.01 0.34 0.33 0.29 0.33 0.36 49.57 0.31 0.35 0.33 23.88 18.12 17.96 5.76 -0.01 -0.01 BUY BUY - BUY WASEONG 1.50 0.04 1.51 1.44 1.35 1.43 1.51 62.07 1.41 1.39 1.30 20.16 31.50 34.30 -11.35 0.04 0.04 (0.003) SELL SELL - - WCT 1.62 0.06 1.62 1.56 1.44 1.60 1.76 46.16 1.54 1.64 1.61 28.33 19.37 22.24 8.96 -0.03 -0.03 BUY BUY - BUY 0.001 0.000 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 3