Bursa Malaysia Daily Market Report - 22 June

Transcription

1. Thursday , 22 June, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Glomac Bhd: Resilient Demand for Landed Properties 2. Malaysian Economy: Inflation at 3.9% YoY in May 2017 Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Thursday, 22 June 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (21.06.2017) (mil) Main Market 1,192.6 Warrants 249.1 ACE Market 237.2 Bond 14.7 ETF 0.0 Total 1,693.6 Off Market 36.0 Volume +/-chg (RMmn) 87.4 2,333.0 49.7 24.9 -248.8 50.2 -1.1 5.5 -0.03 0.0 2,413.6 -112.1 59.0 Value +/-chg 252.1 4.0 -24.8 0.4 -0.04 -21.6 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP June 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 APPASIA DNONCE SALUTE SIME EDUSPEC BAUTO Up Down 202 421 49 130 31 73 2 5 0 2 284 631 % chg % YTD chg 1,775.57 12,615.76 17,230.47 1,779.50 -5.14 -42.21 -93.67 -8.00 -0.29 -0.33 -0.54 -0.45 8.15 10.02 17.09 8.80 21,410.03 6,233.95 7,447.79 20,138.79 2,357.53 25,694.58 3,201.77 1,577.01 5,818.55 3,156.21 1,887.19 5,665.72 -57.11 45.92 -24.92 -91.62 -11.70 -148.46 -28.65 -1.61 26.65 16.20 8.13 -91.53 -0.27 0.74 -0.33 -0.45 -0.49 -0.57 -0.89 -0.10 0.46 0.52 0.43 -1.59 8.34 15.81 4.27 5.36 16.34 16.79 11.14 2.21 9.85 1.69 -4.16 0.00 Top 10 KLCI Movers Based on Mkt Cap. Off Market (mn) 14.5 5.9 5.0 4.0 2.7 1.5 Value/ Volume 1.96 0.10 0.21 0.37 1.37 1.43 1.64 @ @ @ @ @ @ (RM) 0.25 0.31 1.55 9.60 0.02 1.96 Exchange Rate USD/MYR 4.2883 0.0035 USD/JPY 111.23 -0.3100 EUR/USD 1.115 -0.0003 Counter Mkt Cap. (RM’mn) MAYBANK 100,929 TENAGA 80,245 SIME 65,220 PCHEM 48,594 MAXIS 44,691 AXIATA 41,984 GENTING 36,262 IOICORP 31,459 GENM 31,176 HLBANK 28,215 Chg Vol. (RM) (mn) -0.05 17.09 -0.14 14.79 -0.02 7.97 -0.09 4.58 -0.04 5.50 -0.03 8.25 -0.06 2.39 -0.08 4.06 -0.09 7.68 -0.01 2.38 Commodities Futures Palm Oil (RM/mt) 2,441.00 -19.00 Crude Oil ($/Barrel) 42.53 -0.81 Gold ($/tr.oz.) 1,247.50 3.40 Important Dates Stocks fell further on Wednesday, dragged lower by regional weakness as oil prices slumped into bear market territory after increased output from key producers offset a cut in production from OPEC and non-OPEC countries. The KLCI slipped another 5.14 points to close at 1,775.57, off an early high of 1,782.09 and low of 1,773.66, as losers beat gainers 631 to 284 on slower total trade of 1.69bn worth RM2.41bn. Widespread bearish views for a sustained global supply glut depressing oil prices should act to dampen sentiment in the immediate term. Immediate support is revised lower to the 50-day moving average at 1,768, with better support from 1,760, the lower Bollinger band, and subsequently the 100-day ma at 1,743. Immediate upside hurdle stays at the 1,800 psychological level, followed by the 18 May 2015 high of 1,823. Further weakness in AirAsia to the 76.4%FR (RM3.04), with firmer support from the 100-day ma (RM3.01), should attract bargain hunters looking for oversold rebound towards the recent high of RM3.42, with strong resistance from the 16/5/17 peak (RM3.59). Likewise, any selling dips in AirAsia X to the 50%FR (38sen) should encourage buying ahead of oversold rebound towards the 76.4%FR (44sen), with tougher upside hurdle from the Aug 2016 peak of 49.5sen. • • • • • • • • • • • • • • • SEG - 5:7 Bonus Issue - BI of 516.8m shares. 5 bonus shares for every 7 existing shares. Ex-Date: 22/06/2017. Entitlement Date: 28/06/2017. LISTING ON: 29/06/2017. • TDM - 1:10 Bonus Issue - BI of 150.5m shares. 1 bonus share for every 10 existing shares. Ex-Date: 29/06/2017. Entitlement Date: 03/07/2017. LISTING ON: 04/07/2017. • News Bites Malaysia's headline inflation grew by 3.9% YoY in May 2017 as compared with 4.4% YoY in April 2017. The Finance Ministry will issue a request for proposal by the end of this week for parties interested in participating in the Bandar Malaysia project. Bursa Malaysia Securities Bhd has approved DRB-Hicom Bhd's request for the suspension in the trading of its securities from 9am today pending the release of a material announcement. Following Petronas Carigali Sdn Bhd's 90-day notice to terminate its EC225 helicopter charter contract, MHS Aviation Bhd has also received similar notices from Petronas Carigali's joint operating partners for the contract. Scomi Transit Projects Sdn Bhd has filed a suit against Prasarana Malaysia Bhd and its subsidiary Rapid Rail Sdn Bhd over their media statements on the safety concerns and risks associated with four-car trains manufactured by it. Bumi Armada Bhd has suspended operations on its floating production storage and offloading unit Armada Perdana, due to longstanding delays in payments from Erin Petroleum Nigeria Ltd, a subsidiary of Erin Energy Corp. My E.G. Services Bhd is going to lease a plot of land in Johor for RM10.76mn from state investment entity Johor Corp to build its own hostel facilities. A loss in "other operating income" has dragged Glomac Bhd's fourth quarter net profit down 94.36% to RM1.28mn, from RM22.64mn a year earlier. Titijaya Land Bhd aims to launch two high-rise residential projects with a RM3.25bn gross development value by the third quarter of this year. Excluding the disposal gain of c.RM80mn and a one-off grant of RM26.3mn, Glomac Berhad's FY17 normalised net profit of RM11.6mn came in below expectations. Pos Malaysia Bhd FY17 net profit rose 33.23% to RM84.06mn and it has proposed a first and final dividend of 10.7 sen per share. Berjaya Media Bhd reported today that its fourth quarter net loss has approximately quadrupled and that it has slipped into Practice Note 17 status. Kronologi Asia Bhd has partnered Singapore Technologies Electronics Ltd to expand in Hong Kong as part of its strategy to deliver transnational data backup solutions. Ekovest Bhd had today received the approval-in-principle for the planned "Kuala Lumpur River City" development from the Malaysian Government. The government has agreed to form a Royal Commission of Inquiry to investigate the foreign exchange losses amounting to billions of ringgit suffered by Bank Negara in the 1980s. The Malaysian Anti-Corruption Commission hopes to complete its investigation paper on former chairman of Felda Global Ventures Holdings Bhd Tan Sri Mohd Isa Abdul Samad, and his wife soon, before handing it over to the Attorney-General's Chambers for further action. The US existing-home sales rose 1.1% in May from the prior month to a seasonally adjusted annual rate of 5.62mn. DISCLAIMER The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
3. TA Securities Thursday , June 22, 2017 FBMKLCI: 1,775.57 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Market View Tel: +603+603-2072 1277 taresearch@ta.com.my taresearch@ta.com.my www.taonline.com.my Sustained Global Oil Glut to Dampen Tone Stocks fell further on Wednesday, dragged lower by regional weakness as oil prices slumped into bear market territory after increased output from key producers offset a cut in production from OPEC and non-OPEC countries. The KLCI slipped another 5.14 points to close at 1,775.57, off an early high of 1,782.09 and low of 1,773.66, as losers beat gainers 631 to 284 on slower total trade of 1.69bn worth RM2.41bn. Support Revised Down to 1,768/1,760 Widespread bearish views for a sustained global supply glut depressing oil prices should act to dampen sentiment in the immediate term. Immediate support is revised lower to the 50day moving average at 1,768, with better support from 1,760, the lower Bollinger band, and subsequently the 100-day ma at 1,743. Immediate upside hurdle stays at the 1,800 psychological level, followed by the 18 May 2015 high of 1,823. Buy Weakness in AirAsia & AirAsia X Further weakness in AirAsia to the 76.4%FR (RM3.04), with firmer support from the 100day ma (RM3.01), should attract bargain hunters looking for oversold rebound towards the recent high of RM3.42, with strong resistance from the 16/5/17 peak (RM3.59). Likewise, any selling dips in AirAsia X to the 50%FR (38sen) should encourage buying ahead of oversold rebound towards the 76.4%FR (44sen), with tougher upside hurdle from the Aug 2016 peak of 49.5sen. Global Oil Slump Weighs on Asian Markets Asian stock markets traded mostly lower on Wednesday as oil prices fall to seven-month lows following news of an increase in production from Libya and Nigeria. Adding to the uncertainty was news Saudi Arabia's Crown Prince Mohammed bin Salman had replaced his cousin in a sudden shift that made King Salman's 31-year-old son next ruler of the kingdom. Japanese stocks fell as a stronger yen sapped risk appetite, while mining stocks underperformed. The Nikkei shares average fell 0.45 percent to 20,138.79, while Korean Kospi ended 0.49 percent lower to close at 2,357.53. In down under, the benchmark ASX200 ended lower by 1.59 percent to close at 5,772.80 dragged lower by its energy and materials sub-indexes. MSCI announced it would add China A-shares to its MSCI Emerging Markets Index after rejecting China's previous three attempts. The index giant said it will add 222 mainland Chinese stocks to its benchmark emerging market index from next year. China’s blue-chip CSI300 index ended higher by 1.17 percent to close at 3,587.96 as investors snapped up consumer stocks. Meanwhile, Shanghai Composite Index gained 0.52 percent to 3,156.38 points. U.S Market Mostly Lower as Oil Slumps The Dow and S&P 500 ended lower on Wednesday weighed down by losses in the energy sector as oil prices continued to slide, while healthcare and technology stocks helped lift the Nasdaq Composite index. Energy stocks dropped 1.6 percent to lead decliners as U.S. crude Page 1 of 6
4. TA Securities 22-Jun-17 A Member of the TA Group touched its lowest point since August despite larger than expected declines in inventories . Bank stocks fell 0.8 percent as investors worried interest rate margins would be hurt by a flattening yield curve, which is also driven by inflation expectations. Meanwhile, healthcare stocks were boosted by reports that U.S. President Donald Trump's efforts to rein in drug prices may be friendlier than expected to the industry. The Dow Jones Industrial Average fell 57.11 points, or 0.27 percent, to 21,410.03, the S&P 500 lost 1.42 points, or 0.06 percent, to 2,435.61 and the Nasdaq Composite gained 45.92 points, or 0.74 percent, to 6,233.95. Page 2 of 6
5. TA Securities 22-Jun-17 A Member of the TA Group News In Brief Corporate The Finance Ministry (MoF) will issue a request for proposal (RFP) by the end of this week for parties interested in participating in the Bandar Malaysia project. Under the RFP, the MoF would set new criteria and conditions for companies to participate (StarBiz). The government has agreed to form a Royal Commission of Inquiry (RCI) to investigate the foreign exchange losses amounting to billions of ringgit suffered by Bank Negara in the 1980s. The Cabinet "unanimously agreed" with the recommendation of the special task force of the need to set up the RCI to enable investigations into the losses to continue (The Star) The Malaysian Anti-Corruption Commission (MACC) hopes to complete its investigation paper on former chairman of Felda Global Ventures Holdings Bhd (FGV) Tan Sri Mohd Isa Abdul Samad, and his wife, Puan Sri Bibi Sharliza Mohd Khalid, "soon", before handing it over to the Attorney-General's Chambers for further action. MACC will review the statements and explanations provided by Mohd Isa and his wife, especially on the issue related to corruption and abuse of power (The Edge). Bursa Malaysia Securities Bhd has approved DRB-Hicom Bhd’s request for the suspension in the trading of its securities from 9am today pending the release of a material announcement. The trading suspension comes the day before DRB-Hicom and Zhejiang Geely Holding Group are scheduled to sign a definitive agreement to formalise the latter as a shareholder in DRB-Hicom’s subsidiary Proton Holdings Sdn Bhd (StarBiz). Following Petronas Carigali Sdn Bhd’s 90-day notice to terminate its EC225 helicopter charter contract, MHS Aviation Bhd has also received similar notices from Petronas Carigali’s joint operating partners for the contract. According to Boustead, Sapura Exploration and Production (PM) Inc, EQ Petroleum Production Malaysia Ltd and ExxonMobil Exploration and Production Malaysia Inc had also gave 90-day notices of their intention to cancel the contract. The contract is for the provision of rotary wing aircraft, equipment and services (for heavy type aircraft – EC225) (StarBiz). Scomi Transit Projects Sdn Bhd (STP) has filed a suit against Prasarana Malaysia Bhd and its subsidiary Rapid Rail Sdn Bhd over their media statements on the safety concerns and risks associated with four-car trains manufactured by it. Scomi Engineering Bhd’s unit STP was seeking damages as well as an order for the removal and/or retraction of media statements (Bursa Malaysia). Bumi Armada Bhd has suspended operations on its floating production storage and offloading (FPSO) unit Armada Perdana, due to longstanding delays in payments from Erin Petroleum Nigeria Ltd, a subsidiary of Erin Energy Corp. Irregular payments on the O&M contract had also contributed towards suspension in operations (The Edge). Berjaya Media Bhd (BMedia), which publishes TheSun newspaper, reported today that its fourth quarter net loss has approximately quadrupled and that it has slipped into Practice Note 17 (PN17) status (The Edge). My E.G. Services Bhd (MyEG) is going to lease a plot of land in Johor for RM10.76mn from state investment entity Johor Corp to build its own hostel facilities. MyEG had accepted the offer yesterday for the 30-year lease, which comes with an option to renew for another 30 years (StarBiz). A loss in “other operating income” has dragged Glomac Bhd’s fourth quarter net profit down 94.36% to RM1.28mn, from RM22.64mn a year earlier. Revenue fell 16.12% to RM158.89mn, from RM189.42mn, mainly due to completion of the Glomac Centro and Reflection Residences, as well as tail end projects in Saujana Rawang (Bursa Malaysia). Page 3 of 6
6. TA Securities 22-Jun-17 A Member of the TA Group Comfort Gloves Bhd reported a net profit of RM10 .15mn for its first quarter ended April 30, 2017 (1QFY18), compared with a net loss of RM9.44mn a year earlier. The significant profit growth, however, is not reflective of the glove maker’s actual performance — the loss previously was due to a fire outbreak incurred by a subsidiary in March 2016, costing the company RM12.8mn in write-offs (Bursa Malaysia). Titijaya Land Bhd aims to launch two high-rise residential projects with a RM3.25bn gross development value (GDV) by the third quarter of this year. The properties are the 2.02 hectare Riveria City @KL Sentral (RM1.45bn GDV) and the 2.42 hectare 3rd Avenue @ Embassy Row Kuala Lumpur (The Edge). Pos Malaysia Bhd has proposed a first and final dividend of 10.7 sen per share for its financial year ended March 31, 2017. The group’s net profit for the year rose 33.23% to RM84.06mn, from RM63.09mn a year ago (The Edge). Kronologi Asia Bhd has partnered Singapore Technologies Electronics Ltd (ST Electronics) to expand in Hong Kong as part of its strategy to deliver transnational (cross border) data backup solutions. Kronologi will invest up to US$2.35mil (RM10mil) in new equipment to be installed at an ST Electronics’ existing data centre in Hong Kong (StarBiz). Ekovest Bhd had today received the approval-in-principle for the planned "Kuala Lumpur River City" development from the Malaysian Government. Kuala Lumpur River City is a planned real estate project along the Gombak River here (StarBiz). Kumpulan Perangsang Selangor Bhd (KPS) is raising its stake to 51% from 30% in KPSHCM Sdn Bhd, an infrastructure and road maintenance firm that it jointly owns with Protasco Bhd. KPS is paying RM1.72mn to acquire the additional 21% stake in Protasco's wholly-owned unit HCM Engineering Sdn Bhd. The firm has been awarded a RM174.4mn contract for infrastructure works in Pulau Indah (The Edge). Page 4 of 6
7. TA Securities 22-Jun-17 A Member of the TA Group News In Brief Economy Asia Malaysia Inflation Up 3 .9% but Below Forecast Inflation rate, measured by the consumer price index (CPI), rose 3.9% in May 2017 from 4.4% in April 2017, driven by higher fuel prices. However, the CPI was below economists’ forecast of a 4.1% increase. According to the Statistics Department, among the major groups which recorded increases were the indices for transport (+13.1%); food and nonalcoholic beverages (+4.4%); recreation services and culture (+2.9%); health (+2.9%); restaurants and hotels (+2.3%); and housing, water, electricity, gas and other fuels (+2.2%). In the breakdown of inflation, the department said the index for food and non-alcoholic beverages which accounted 30.2% in the CPI weights, increased 4.4% in May 2017. It said the increase was led by oils and fats with a rise of 38.9%. The price of cooking oil was 48.9% higher in May. Core inflation rose 2.6% in May 2017 compared to the same month of the previous year. The CPI for the period January to May 2017 registered an increase of 4.3% as compared to the same period last year. The index for food and non-alcoholic beverages were the main contributor to the CPI rise in the period January to May 2017, registered an increase of 4.1%. (The Star) Cheaper Malaysia’s Petrol for 4th Week of June Petrol prices to continue their downward trend for the fourth week of June. RON95 saw a seven sen reduction in prices, retailing at RM1.91 per litre. RON97 petrol, previously retailing at RM2.24, sold at RM2.17 per litre. Diesel prices however, remain unchanged at RM1.88 per litre. The prices, which are for the period of June 22 to June 28, will take effect midnight tonight. The latest prices were announced by the Domestic Trade, Cooperatives and Consumerism Ministry via its Twitter account. The weekly fuel pricing mechanism was implemented in April this year. A managed monthly float system for fuel prices had been in effect since Dec 1, 2014, following the removal of fuel subsidies. (New Strait Times) Japan All Industry Activity Rebounds in April Japan's all industry activity rebounded in April from March, data published by the Ministry of Economy, Trade and Industry showed. The all industry activity index climbed 2.1% month-on-month in April, reversing a 0.7% fall in March. The monthly rate also exceeded the expectations of 1.6%. Construction activity surged 7.3% in contrast to March's 0.9% drop. Likewise, industrial output advanced 4% following a 1.9% decrease. Tertiary industry activity grew 1.2% versus a 0.3% fall in March. On a yearly basis, all industry activity growth accelerated to a 5-month high of 1.9% from 1% in March. (RTT News) United States U.S. Existing-Home Sales Up in May Despite Tight Supply Sales of previously owned U.S. homes increased in May, a sign of solid demand during the housing market’s spring selling season despite fast-rising prices and tight inventory. Existing-home sales rose 1.1% in May from the prior month to a seasonally adjusted annual rate of 5.62 million, the National Association of Realtors. Economists surveyed by The Wall Street Journal had expected a 0.5% decline to a 5.54 million annual pace; April sales were revised down slightly. Compared with a year earlier, sales were up 2.7% in May. Despite the latest sales uptick, a lack of available homes has continued to drive too-rapid price growth. The median sale price in May was $252,800, the highest on record and up 5.8% from a year earlier. There was a 4.2 month-supply of homes on the market at the end of the month, based on the current sales pace. Inventory has declined on a year-over-year basis for 24 straight months. The median property remained on the market just 27 days in May, the shortest time since the Realtors group began tracking the metric six years ago. (The Wall Street Journal) Europe and United Kingdom U.K. Budget Deficit Narrows in May, Bringing Brief Respite to Hammond Britain's budget deficit narrowed last month, helped by a recovery in value-added tax receipts, giving Chancellor Philip Hammond some respite ahead of an expected increase in borrowing later this year. The deficit in May stood at 6.7 billion pounds, down nearly 5% compared with the same month last year, the Office for National Statistics said, citing Page 5 of 6
8. TA Securities 22-Jun-17 A Member of the TA Group figures that exclude state-controlled banks . The shortfall matched the median forecast in a poll of economists. The public finances were boosted last month by the biggest intake of value-added tax receipts for any May on record, after these sales taxes stalled in April. Britain has been struggling to fix its public finances since the budget deficit surged to around 10% gross domestic product in 2010 after the global financial crisis. Since then it has been cut steadily to 2.4% of GDP in the 2016/17 financial year which ended in March, its smallest since before the crisis. While borrowing over the first two months of the 2017/18 financial year stands 0.4% lower than at the same point in 2016/17, the deficit is expected to increase later this year. The Office for Budget Responsibility thinks it will widen to 2.9% GDP in 2017/18 when Hammond will have fewer one-off factors to help him. Britain's economy is also widely expected to slow as negotiations to leave the European Union progress. Households are already strained by rising consumer prices, fuelled by the pound's sharp fall after last June's Brexit vote. (Reuters) ECB Says Existing Risks to Global Growth Eased, but New Threats Emerged Existing risks to global growth such as an abrupt tightening of financial conditions likely eased over the past year, thanks to careful communication by the US Federal Reserve, but new threats have emerged due to high policy uncertainty surrounding the fiscal and trade plans of the Trump administration, the European Central Bank said Wednesday. "Careful communication by the Federal Reserve System, coupled with a very gradual course of monetary policy tightening and the decline in vulnerabilities in major emerging market economies, appears to have eased the risk of a disorderly tightening of global financial conditions," the bank said in its latest economic bulletin. Meanwhile, further increases in leverage have raised the medium-term vulnerabilities for China though policy actions to support activity have helped allay concerns about the near-term prospects of the economy, the ECB said. And, geopolitical tensions remain high, the report added. On the other hand, new sources of risk have emerged, the ECB warned. One of them is the significant policy uncertainty surrounding the fiscal and trade policies of the new US Administration, the report said. The latter entails potentially significant negative effects on the global economy, the bank pointed out. (RTT News) Share Buy-Back: 21 June 2017 Company AMPROP GRANFLO SUNCON TROP Bought Back Price (RM) Hi/Lo (RM) 20,000 15,000 374,000 59,700 0.80 0.23/0.225 1.98/1.97 0.965/0.955 0.795/0.785 0.23/0.22 2.00/1.97 0.97/0.95 Total Treasury Shares 13,789,100 6,273,800 654,000 2,816,942 Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 6 of 6
9. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 21-Jun-17 1.96 2.26 5.95 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.37 2.28 5.41 0.99 0.60 1.26 10.3 24.1 19.7 15.8 25.3 29.8 19.0 9.4 30.3 12.4 8.9 19.9 6.0 4.0 2.2 8.1 4.0 3.2 2.44 2.70 7.00 -19.7 -16.3 -15.0 1.95 1.95 4.43 0.5 15.9 34.3 -8.0 5.6 30.2 4.60 3.50 5.30 7.00 15.90 9.90 22.10 5.20 10.00 1.28 0.95 1.34 1.37 0.67 0.96 0.79 1.35 0.70 33.6 29.4 43.9 49.6 101.6 73.3 136.6 50.6 40.3 30.4 33.1 48.3 54.8 110.2 82.3 140.4 54.0 39.0 11.8 9.1 11.6 13.4 15.1 13.1 14.9 10.1 25.8 13.0 8.1 10.6 12.1 14.0 11.7 14.5 9.4 26.6 4.1 3.0 3.5 3.0 2.7 5.2 2.7 2.4 3.3 4.1 3.0 3.5 3.4 2.7 5.2 2.8 2.4 3.3 4.49 3.00 5.70 6.87 15.74 9.68 20.58 5.59 11.14 -12.0 -11.0 -10.5 -3.2 -2.3 -0.9 -1.0 -8.9 -6.8 3.60 2.08 3.90 4.11 12.70 7.50 19.02 4.53 8.20 9.7 28.4 30.8 61.7 21.1 27.9 7.2 12.4 26.6 6.2 11.7 18.3 47.5 13.9 17.0 3.3 8.1 17.3 0.41 1.30 5.40 3.46 0.63 1.30 1.98 2.04 5.93 0.46 1.62 5.49 3.50 0.78 0.58 2.26 1.49 6.26 0.80 0.62 1.05 1.10 1.03 1.31 na 1.04 0.09 5.7 14.6 31.6 15.3 4.9 8.3 12.6 11.9 42.0 5.7 13.5 36.4 20.3 5.7 9.6 12.5 12.0 45.8 7.2 8.9 17.1 22.6 12.7 15.7 15.7 17.1 14.1 7.2 9.6 14.8 17.0 11.0 13.5 15.8 17.0 13.0 0.0 2.2 2.2 2.2 4.0 0.8 2.8 1.5 4.2 0.0 2.2 2.2 2.7 4.0 0.8 2.8 1.5 4.2 0.51 1.35 5.48 3.61 0.74 1.33 2.15 2.48 6.15 -19.6 -3.8 -1.5 -4.2 -14.3 -2.3 -7.9 -17.6 -3.6 0.36 0.80 4.65 3.07 0.33 0.41 1.50 1.46 5.55 13.9 63.3 16.1 12.7 90.9 221.0 32.0 39.6 6.8 -5.7 23.8 13.0 8.1 4.1 126.1 16.5 18.6 0.9 2.00 2.00 0.49 11.0 11.5 18.2 17.4 5.0 5.0 2.19 -8.7 1.93 3.6 -0.5 14.70 18.42 17.84 21.08 0.51 0.57 74.8 93.1 81.3 19.7 101.9 19.8 18.1 18.1 5.1 4.5 5.5 5.0 15.30 19.10 -3.9 -3.6 12.90 14.96 14.0 23.1 5.6 12.5 2.21 7.60 25.00 1.22 83.00 3.45 1.95 4.86 0.93 2.23 8.62 27.41 1.39 88.66 4.10 2.50 4.41 1.36 0.50 0.36 0.33 0.49 0.36 0.50 0.67 0.44 0.56 6.7 26.4 120.5 6.1 293.5 22.3 27.5 15.7 9.3 7.9 30.5 148.1 6.2 326.2 24.7 27.5 16.6 12.7 32.9 28.8 20.7 20.1 28.3 15.5 7.1 31.0 10.0 28.1 24.9 16.9 19.6 25.4 14.0 7.1 29.2 7.3 1.8 3.9 2.8 4.9 3.3 4.3 3.1 0.9 5.4 2.1 4.6 3.0 4.9 3.4 4.9 4.1 1.0 5.4 3.00 8.89 27.00 1.35 83.68 3.66 2.04 5.00 1.07 -26.3 -14.5 -7.4 -9.5 -0.8 -5.6 -4.4 -2.8 -13.6 2.11 7.30 22.44 1.13 74.12 2.12 1.43 4.14 0.78 4.7 4.1 11.4 7.9 12.0 62.7 36.4 17.3 18.6 -14.0 3.7 6.5 6.0 6.1 35.9 12.7 12.2 16.4 43.80 52.08 1.05 198.6 187.4 22.1 23.4 4.6 4.6 55.64 -21.3 40.61 7.9 -0.8 9.58 5.50 11.53 6.58 1.35 1.28 49.3 25.7 55.5 27.9 19.4 21.4 17.3 19.7 0.5 1.5 0.6 1.6 10.00 6.38 -4.2 -13.8 7.50 4.19 27.8 31.2 20.6 21.7 2.55 0.13 3.34 0.13 0.74 1.26 19.3 0.4 23.3 0.4 13.2 34.4 11.0 34.6 5.5 0.0 6.3 0.0 3.42 0.16 -25.4 -21.9 2.48 0.05 2.8 150.0 -13.9 150.0 5.90 4.18 6.65 4.70 0.78 0.52 10.3 13.3 16.4 16.5 57.3 31.4 36.0 25.4 0.7 1.5 0.7 1.8 6.73 4.37 -12.3 -4.3 5.54 3.85 6.5 8.6 -7.1 0.0 6.89 6.45 1.97 5.60 1.70 6.05 7.70 1.80 5.80 2.40 0.61 0.16 0.33 -0.20 0.28 20.0 35.8 12.3 26.5 3.7 24.2 40.5 15.3 30.2 6.1 34.4 18.0 16.0 21.2 45.6 28.4 15.9 12.9 18.5 28.1 1.3 2.8 1.9 2.4 0.5 1.6 3.1 2.3 2.7 0.9 7.12 7.07 2.38 5.94 2.64 -3.2 -8.8 -17.2 -5.7 -35.6 4.06 5.62 1.88 4.20 1.65 69.7 14.8 4.8 33.3 3.0 42.7 -2.1 -6.6 4.7 -28.0 INDUSTRIAL SCIENTX SKPRES 8.35 1.28 9.69 1.90 0.55 0.52 54.4 8.6 66.4 11.4 15.4 14.9 12.6 11.2 2.2 3.3 2.4 4.3 8.99 1.44 -7.1 -11.1 5.99 1.12 39.4 14.3 24.6 -0.8 MEDIA ASTRO MEDIA PRIMA STAR 2.67 0.95 2.27 3.45 0.60 1.40 1.04 0.65 0.64 13.2 1.7 7.1 14.5 2.8 6.5 20.2 55.6 32.0 18.5 33.6 35.0 4.7 1.4 7.9 4.9 2.4 7.9 3.01 1.52 2.70 -11.3 -37.5 -15.9 2.51 0.94 2.19 6.4 1.6 3.7 2.7 -17.4 1.3 -15.9 -28.0 -5.2 -10.5 -8.3 -23.3 -51.9 0.19 0.84 7.03 0.44 6.36 1.29 0.49 205.3 0.0 6.5 36.8 12.4 24.8 2.0 127.5 -8.7 1.9 33.7 2.4 -0.6 -42.9 -16.5 1.30 28.5 -1.8 BANKS & FINANCIAL SERVICES AFG 3.95 AFFIN 2.67 AMBANK 5.10 CIMB 6.65 HLBANK 15.38 MAYBANK 9.59 PBBANK 20.38 5.09 RHBBANK BURSA 10.38 CONSTRUCTION BPURI GADANG GAMUDA IJM PESONA SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N HUPSENG NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX OIL & GAS DNEX 0.58 0.74 1.03 3.5 4.3 16.7 13.6 1.7 1.7 0.69 MHB 0.84 0.95 1.84 -1.2 1.3 na 63.7 0.0 0.0 1.16 MISC 7.49 7.65 0.81 61.4 54.7 12.2 13.7 4.0 4.0 7.90 PANTECH 0.60 0.69 1.28 4.1 5.0 14.3 11.9 3.0 3.3 0.67 PCHEM 7.15 7.91 1.08 39.2 41.6 18.3 17.2 2.9 3.1 7.80 SENERGY 1.61 2.01 2.47 6.6 4.0 24.4 40.6 0.0 0.0 2.10 UMWOG 0.50 0.80 2.02 -12.0 -3.6 na na 0.0 0.0 1.04 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.67 1.55 1.42 12.0 12.9 14.0 12.9 0.0 0.0 2.00
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 1.71 3.10 4.49 24.90 9.59 6.02 Target Price BETA (RM) 1.55 3.88 4.15 26.19 10.02 7.52 1.75 0.46 1.09 0.87 1.23 0.47 EPS (sen) PER (X) FY17 FY18 FY17 FY18 4.2 12.3 18.7 111.8 34.0 32.7 8.5 15.7 21.0 119.1 37.5 34.5 40.5 25.2 24.0 22.3 28.2 18.4 20.1 19.7 21.4 20.9 25.6 17.5 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 2.9 2.3 2.2 2.2 2.6 2.8 2.9 2.6 2.7 2.4 3.2 2.8 2.52 3.70 4.81 25.50 9.67 6.51 -32.1 -16.2 -6.7 -2.4 -0.8 -7.5 1.42 3.00 4.21 22.72 7.30 5.53 PROPERTY GLOMAC 0.67 0.70 0.60 1.6 6.3 41.7 10.5 4.5 4.5 0.83 -19.4 0.66 HUAYANG 1.06 1.07 0.65 17.3 17.4 6.1 6.1 3.8 3.3 1.43 -26.0 1.05 IBRACO 0.84 0.92 0.35 4.9 10.2 17.2 8.2 4.2 4.8 1.05 -20.0 0.79 IOIPG 2.16 2.25 0.90 17.4 17.4 12.4 12.4 3.2 3.5 2.46 -12.2 1.85 MAHSING 1.55 1.70 0.72 14.4 14.2 10.7 10.9 4.2 4.2 1.70 -8.8 1.34 SNTORIA 0.84 0.98 0.29 6.2 10.3 13.6 8.1 1.2 1.2 1.00 -16.0 0.69 SPB 4.84 5.98 0.59 25.6 22.8 14.2 16.0 3.8 3.8 5.19 -6.7 4.32 SPSETIA 3.64 4.10 0.65 11.7 12.6 33.5 31.0 1.3 1.3 4.50 -19.1 2.80 SUNWAY 3.91 3.95 0.46 15.5 15.8 17.3 16.9 6.7 6.8 4.05 -3.5 2.84 Note: SUNWAY proposed bonus issue of shares and warrants. Ex-Target price RM1.69. For more details please refer to 15.06.17 report. REIT SUNREIT 1.72 1.86 0.51 8.9 10.1 19.4 17.0 5.2 5.9 1.84 -6.5 1.60 CMMT 1.53 1.72 0.56 8.1 8.6 18.9 17.7 5.5 5.8 1.72 -11.0 1.45 % Chg YTD 20.4 3.3 6.7 9.6 31.4 8.9 10.3 -8.8 2.0 3.8 18.4 0.3 0.8 1.0 7.0 16.9 15.7 21.7 12.0 30.0 37.6 -4.3 -6.2 -16.0 10.8 8.4 5.0 9.5 16.3 30.3 7.5 5.5 0.0 0.0 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.06 24.78 18.70 14.18 1.44 1.23 21.47 19.60 17.37 1.90 0.73 0.77 0.77 1.01 0.56 7.1 98.4 88.2 131.9 8.2 6.4 102.3 101.3 130.8 10.7 14.9 25.2 21.2 10.7 17.5 16.5 24.2 18.5 10.8 13.5 6.6 2.9 3.3 3.1 6.9 6.6 3.1 3.8 3.2 6.9 1.80 25.70 22.66 14.90 1.64 -41.1 -3.6 -17.5 -4.8 -12.2 1.04 22.92 18.10 13.00 1.38 1.9 8.1 3.3 9.1 4.3 -22.6 4.1 -12.2 2.0 -3.4 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 4.98 4.99 5.59 6.65 5.50 4.95 6.05 7.50 1.30 0.93 0.69 0.67 15.0 20.8 25.4 21.4 16.7 21.1 26.1 22.3 33.1 23.9 22.0 31.0 29.9 23.7 21.4 29.8 1.5 4.2 3.6 2.9 1.7 4.2 3.6 3.0 5.99 5.19 6.60 6.90 -16.9 -3.9 -15.3 -3.6 4.11 4.64 5.50 5.81 21.2 7.5 1.6 14.5 5.5 3.3 -6.5 11.8 TECHNOLOGY Semiconductor & Electronics IRIS 0.15 INARI 2.09 MPI 13.30 UNISEM 3.40 0.28 2.40 15.90 4.10 1.35 0.80 0.50 0.80 -2.6 10.3 94.2 26.9 -0.3 na 12.6 20.3 115.7 14.1 29.1 12.6 na 16.6 11.5 11.7 0.0 3.8 2.0 3.5 0.0 2.4 2.0 3.5 0.24 2.23 13.50 3.70 -37.5 -6.3 -1.5 -8.1 0.10 1.41 7.11 2.27 50.0 48.5 87.1 49.8 36.4 25.9 79.5 44.1 3.11 8.60 3.23 8.10 1.11 1.48 37.6 17.2 35.9 17.5 8.3 49.9 8.7 49.2 1.3 1.2 1.6 1.2 3.59 9.45 -13.4 -9.0 2.16 5.76 44.0 49.3 35.8 41.9 1.72 3.70 2.05 4.05 0.74 0.66 14.3 17.1 22.7 15.1 12.0 21.6 7.6 24.5 2.5 3.5 4.1 3.1 1.87 4.59 -8.0 -19.4 1.33 3.62 29.3 2.2 8.2 -14.0 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 20.40 OCBC 10.47 UOB 22.84 PLANTATIONS WILMAR IFAR 3.49 0.48 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 23.30 12.00 25.40 1.23 1.13 1.09 173.8 87.7 195.6 190.2 11.7 92.4 11.9 209.3 11.7 10.7 11.3 10.9 2.9 5.7 3.1 2.9 6.7 3.1 21.2 10.8 24.0 -3.7 -2.7 -4.9 14.72 8.84 17.41 38.6 27.4 31.2 17.6 17.4 12.0 3.72 0.53 0.92 1.13 28.9 4.9 31.1 5.2 11.2 9.1 2.3 2.5 2.6 2.7 4.0 0.6 -12.8 -20.2 2.96 0.44 17.9 8.0 -2.8 -9.5 12.1 9.8 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. 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.
11. TA Securities RESULTS UPDATE Thursday , June 22, 2017 FBMKLCI: 1,775.57 Sector: Property A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Glomac Bhd TP: RM 0.70 (+5.0%) Last Traded: RM 0.67 Resilient Demand for Landed Properties Hold THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Thiam Chiann Wen Tel: +603-2167 9615 cwthiam@ta.com.my Review Excluding the disposal gain of c.RM80mn and a one-off grant of RM26.3mn, Glomac’s FY17 normalised net profit of RM11.6mn came in below expectations. It only accounted for 46% and 28% ours and consensus’ fullyear forecasts. The variance was largely due to: 1) RM18mn levy paid to release unsold bumi unit, and 2) higher-than-expected effective tax rates due to non-recognition of deferred tax assets on tax losses, which was recorded in 4QFY17. The group proposed a final dividend of 1.5sen/share, bring the total FY17 DPS to 3.0sen. This is lower than the 4.0sen/share paid in FY16 and below our projected DPS of 4.0sen/share. Nevertheless, the total DPS still translated to a fairly decent dividend yield of 4.5%, based on Glomac’s last closing price. www.taonline.com.my Share Information Bloomberg Code GLMC MK Stock Code 5020 Listing Main Market Share Cap (mn) 723.0 Market Cap (RMmn) 480.8 Par Value 0.5 52-wk Hi/Lo (RM) 0.825/0.66 12-mth Avg Daily Vol ('000 shrs) 223.2 Estimated Free Float (%) 30.9 Beta 0.6 Major Shareholders (%) Tan Sri Dato'Mohd Mansor (20.2) Datuk Fong Loong Tuck (16.3) Dato Fateh Iskandar (16.0) Lembaga Tabung Haji (10.3) Forecast Revision Glomac’s FY17 PBT jumped 38% YoY to RM168mn. However, normalized PBT would have declined by 68% YoY - after adjusting for the impact of land disposal (Cheras land sale to PR1MA for RM145.6mn announced in Oct-15) and one-off grant received for upgrade and improvement of infrastructure surrounding Glomac Damansara development amounting to RM36.2mn. The poor results are attributable to slow progress billing as its previous key contributing projects are nearing completion or completed during the period under review. Sequentially, 4QFY17 net profit plunged 76% to RM1.3mn. The weaker bottom-line was largely impacted by the levy paid to release unsold bumi units and higher taxes charged in 4QFY16. Impact We adjust our FY18 & FY19 earnings by -10% and +6% respectively after incorporating: 1) the actual FY17 results; and 2) revised FY18 & FY19 sales assumptions of RM500mn and RM690mn respectively (from RM550mn and RM766mn previously). To be supported by improving property sales, we introduce our FY20 earnings forecast of RM74mn, which implies a 21% YoY growth. Analyst Briefing Highlight FY17 new property sales increased 38% to RM420mn. Glomac sold RM216mn worth of properties in 4QFY17 (+77% QoQ, +25% YoY), bringing the full-year FY17 sales to RM420mn (+38% YoY) – see Table 1. This came in slightly above our RM400mn sales projection but below management’s sales target of RM500mn. Stronger sales performance in 4QFY17 was largely driven by maiden launches at Saujana Perdana @ Sungai Buloh, previously known as Saujana Utama 4. Featuring 430 units double storey terrace houses with combined GDV of RM203mn, we gather that the units are 94% sold. Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating Financial Indicators FY18 16.3 7.9 8.4 2.3 1.5 0.4 FY19 13.9 5.1 13.0 3.0 1.6 0.4 vs TA vs Consensus % of FY 46.0 28.0 Below Below Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth Glomac (5.7) (7.0) (3.6) (11.9) FBM KLCI 0.0 1.6 9.4 8.4 Net Debt / Equity (%) FCPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) Scorecard (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg Page 1 of 4 FY18 FY19 (10.2) 6.0 45.9 61.7 68.7 114.4 66.8 54.0 Sell (Upgraded)
12. TA Securities 22-Jun-17 A Member of the TA Group Unbilled sales recovered to RM556mn (1.3x FY17 normalised property revenue). Higher sales helped to lift the group’s unbilled sales higher to RM556mn from RM484mn a quarter ago. This provides the group with slightly more than one-year’s earnings visibility. Table 1: Property Sales Breakdown Sales (RMmn) Glomac Damansara Bandar Saujana Utama Saujana Rawang Reflection Residence Glomac Centro Lakeside Residenes Saujana KLIA Others Total 4QFY16 4 11 5 0 -7 12 140 8.4 173 3QFY17 0 78 0 1 0 26 13 4 122 4QFY17 2 148 0 0 0 8 29 29 216 QoQ(%) >100 89.7 0.0 <-100 0.0 (69.2) >100 >100 77.0 YoY(%) (50.0) >100 <-100 0.0 0.0 (33.3) (79.3) 245.2 24.6 FY16 8 11 22 1 2 43 190 27 304 FY17 6 235 0 1 0 58 73 47 420 YoY(%) (25.0) >100 <-100 0.0 <-100 34.9 (61.6) 74.1 38.2 Source: Glomac, TA Research RM1.02bn worth of new launches for FY18. Management kept a cautious tone over the outlook of the property sector, citing challenging operating environment. However, management believes that demand for landed properties at strategic locations should stay relatively resilient, judging from the healthy take up rate of its latest launches at Saujana Perdana. As such, 53% of the new planned launches this year will comprise landed properties – see Table 2. Table 2: RM1.02bn Planned Launches for FY18 Project GDV (RM mn) Project Type Lakeside Residences 61 Shops Targeted Launch 3Q Saujana KLIA 105 2Q/2H Saujana Perdana (SU4) 354 Saujana Utama 5 24 Semi-Ds & Townhouses Terrace Houses & Affordable Homes Terrace Houses Saujana Rawang 48 Affordable Landed Residential 3Q Saujana Jaya, Kulai Johor 66 Terrace Houses 2H Plaza Kelana Jaya, Phase 4 364 Serviced Apts & Shop Offices 2Q Total Source: Glomac, TA Research 1022 1H/2H 2Q No official sales target but expects FY18 sales to be better than in FY17. During the briefing, management did not provide an official sales target for FY18. Having said that, management expects FY18 sales to improve YoY in view of sizable pipeline launches worth RM1.0bn in FY18 (vs. RM290mn launched in FY17). We project the group to record property sales of RM500mn in FY18, on assumptions that: 1) the group will launch Plaza Kelana Jaya 4 partially, i.e. it will only launch the shop offices with GDV of RM65mn and postpone the launch of 390 serviced apartments (GDV: RM299mn) to FY19; and 2) c.75% take up for other landed residential projects. Valuation Share price has retreated 7.6% since the release of the 3QFY17 results. Looking beyond the weak FY17 results, Glomac should be able to deliver better earnings in FY18-19, as property sales show sign of recovery, thanks to the right product offerings in strategic locations. The group’s latest net gearing ratio of 0.2x (vs. the sector average of 0.3x) implies ample capacity Page 2 of 4
13. TA Securities 22-Jun-17 A Member of the TA Group to gear up and capitalise on landbank opportunities . We arrive at a new target price of RM0.70/share (previous RM0.69/share) based on unchanged 9x CY18 EPS. Given the total potential return of 9.5%, we upgrade Glomac to Hold from Sell previously. Figure 1: Property Sales (excludes en-bloc & land sale) Figure 2: Unbilled sales Source: Glomac, TA Research Source: Glomac, TA Research Earnings Summary (RM’mn) YE 30 Apr Reported Revenue Normalised Revenue EBITDA EBITDA margin (%) Reported Pretax Profit Normalised Pretax Profit Reported Net Profit Normalised Net Profit Normalised EPS (sen) Normalised EPS growth (%) PER (x) Gross div (sen) Div yield (%) ROE (%) 2016 616.6 616.6 142.5 23.1 122.4 112.4 81.0 73.5 10.1 9.5 6.0 4.0 6.0 7.6 2017 581.8 436.2 191.8 33.0 168.0 36.2 110.4 11.6 1.6 (84.2) 41.8 3.0 4.5 1.1 Page 3 of 4 2018F 529.9 529.9 87.6 16.5 62.9 62.9 45.9 45.9 6.3 296.2 10.5 3.0 4.5 4.2 2019F 647.5 647.5 110.7 17.1 84.6 84.6 61.7 61.7 8.5 34.5 7.8 3.0 4.5 5.5 2020F 723.2 723.2 125.4 17.3 99.2 99.2 74.4 74.4 10.2 20.6 6.5 3.8 5.7 6.3
14. TA Securities 22-Jun-17 A Member of the TA Group 4Q17 Results Analysis (RM mn) 4QFY16 171.7 167.9 3.8 171.7 3QFY17 87.5 80.8 11.4 87.5 4QFY17 158.9 152.5 1.7 158.9 QoQ(%) 81.6 88.6 (85.0) 81.6 YoY(%) (7.5) (9.2) (55.3) (7.5) FY16 598.9 583.6 15.3 598.9 FY17 581.8 559.2 22.5 436.2 YoY (%) (2.9) (4.2) 46.9 (27.2) EBIT Net Int Inc/ (exp) Associates EI Reported PBT Normalised PBT 22.7 (6.1) 1.0 10.0 27.6 17.6 14.6 (4.8) (0.1) 0.0 9.7 9.7 20.8 (6.3) 0.2 0.0 14.8 14.8 42.5 32.0 (297.5) 0.0 51.8 51.8 (8.1) 3.3 (76.8) (100.0) (46.4) (16.0) 129.7 (21.2) 3.0 10.0 121.5 111.5 160.2 (20.0) 1.5 26.3 168.0 36.2 23.5 (5.6) (48.7) 163.0 38.3 (67.5) Taxation MI Reported Net Profit Normalised Net Profit (5.9) 0.2 21.9 14.4 (4.4) 0.0 5.4 5.4 (12.9) (0.7) 1.3 1.3 191.4 >100 (76.2) (76.2) 117.5 (392.4) (94.2) (91.1) (32.6) (8.7) 80.2 72.7 (57.3) (0.4) 110.4 11.6 75.4 (95.9) 37.7 (84.1) Core EPS (sen) GDPS (sen) 3.0 2.0 0.7 1.5 0.2 1.5 1.6 3.0 13.2 10.3 8.4 21.4 16.7 11.1 6.1 45.3 13.1 9.3 0.8 86.9 (94.1) (25.0) ppt (0.1) (0.9) (7.6) 65.5 11.1 4.0 EBIT margin (%) Pretax margin (%) Net margin (%) Effective tax rate (%) (75.9) 0.0 ppt (3.6) (1.8) (5.3) 41.6 21.7 18.6 12.1 26.9 27.5 6.2 19.0 34.1 (85.5) (25.0) ppt 5.9 (12.4) 6.8 7.2 YE 30 Apr Reported Revenue - Property development - Others Normalised Revenue 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 or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 4 of 4
15. TA Securities ECONOMIC REPORT Thursday , June 22, 2017 FBMKLCI: 1,775.57 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Malaysian Economy Inflation at 3.9% YoY in May 2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Tel: +603-2167 9608 Tel: +603-2167 9220 TA Research Team Coverage shazma@ta.com.my farid@ta.com.my Key Summary: • Lower-than expected result. Malaysia’s Consumer Price Index (CPI) increased less than expected in the month of May. The headline inflation grew by 3.9% YoY in May 2017 as compared with 4.4% YoY in April 2017. On a monthly basis, CPI declined by 0.2% MoM versus 0.3% MoM contraction observed in the prior month. The gain was below ours and consensus estimates of 4.3% YoY and 4.1% YoY respectively. Figure 1: CPI Performance (January 2008 – May 2017) YoY % 8.0% forecast 6.0% 4.0% 2.0% 0.0% -2.0% Oct-16 May-17 Mar-16 Jan-15 Aug-15 Jun-14 Nov-13 Sep-12 Apr-13 Feb-12 Jul-11 Dec-10 Oct-09 May-10 Mar-09 Jan-08 Aug-08 -4.0% Sources: Department of Statistics, TA Securities • Double-digit growth of transport index but at a lesser pace… Transport Index continued to push inflation rate higher during the month, increasing by 13.1% YoY. However, the gain was lesser as compared with the previous month (April 2017: 16.7% YoY) due to a smaller quantum of increase in fuel prices as compared to the previous month. In May 2017, the government has announced lower retail pump price across categories. Cumulatively, the average pump price from 27 April 2017 until 31 May 2017 was RM2.18 a litre, putting a price difference of 41 sen higher than May last year, but 10 sen lower than the average retail pump price in April 2017, resulting ease in transport index overall. As for 1 June 2017 to 28 June 2017, the average price of fuel was lower at RM2.07 a litre (down by 31 sen a year ago), which could translate another round of moderation in June’s inflation rate. To note, for the period of 21 June to 28 June, RON95 saw a seven sen reduction in prices, retailing at RM1.91 per litre. RON97 petrol, previously retailing at RM2.24, sold at RM2.17 per litre. Diesel prices, however, remain unchanged at RM1.88 per litre. • Apart from that, price moderation were also seen in other components such as 1) Recreation Services & Culture (May17: +2.9% YoY; Apr17: +3.0% YoY); 2) Restaurants & Hotels (May17: +2.3% YoY; Apr17: +2.4% YoY); and 3) Miscellaneous Goods & Services (May17: +1.3% YoY; Apr17: +1.5% YoY). Nonetheless, price pressure were also seen during the month namely: 1) Food & Non-alcoholic Beverages (+4.4% YoY); 2) Housing, Water, Electricity, Gas & Other Fuels (+2.2% YoY); 3) Heath (+2.9% YoY) and 4) Furnishings, Household Equipment & Routine Household Maintenance (+2.1% YoY). Page 1 of 3 www.taonline.com.my d o m e s
16. TA Securities 22-Jun-17 A Member of the TA Group Figure 2 : Retail Pump Price in Malaysia (RM per Litre) Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 30 Mar - 5 Apr 2017 6 Apr - 12 Apr 17 13 Apr - 19 Apr 17 20 Apr - 26 Apr 17 27 Apr - 3 May 17 4 May - 10 May 17 11 May - 17 May 17 18 May 2017 - 24 May 17 25 May - 31 May 2017 1 June - 7 June 2017 8 June - 14 June 2017 15 June - 21 June 2017 22 June - 28 June 2017 Source: TA Securities Ron97 Ron95 Diesel Average Pump Price 2.25 2.05 1.95 2.05 2.05 2.05 2.10 2.10 1.85 1.75 1.60 1.70 1.70 1.70 1.75 1.75 1.60 1.35 1.35 1.55 1.55 1.55 1.60 1.70 1.90 1.72 1.63 1.77 1.77 1.77 1.82 1.85 2.05 2.15 2.30 2.25 2.40 2.60 2.60 2.41 2.43 2.52 2.54 2.49 2.39 2.29 2.36 2.40 2.38 2.31 2.24 2.17 1.70 1.80 1.95 1.90 2.10 2.30 2.30 2.13 2.16 2.24 2.27 2.21 2.11 2.01 2.08 2.12 2.10 2.05 1.98 1.91 1.70 1.75 1.90 1.85 2.05 2.15 2.20 2.11 2.08 2.16 2.21 2.14 2.08 1.95 1.99 2.03 2.02 1.94 1.88 1.88 1.82 1.90 2.05 2.00 2.18 2.35 2.37 2.22 2.22 2.31 2.34 2.28 2.19 2.08 2.14 2.18 2.17 2.10 2.03 1.99 • Higher food price in May 2017. Preventing from further slowdown in inflation, prices of Food & Non-alcoholic Beverages advanced by 4.4% YoY in May 2017 – the highest since March 2016. The increase was driven by food sub-group which included Oils & Fats (+38.9% YoY; -0.1% MoM); Fish and Seafood (+7.7% YoY; +0.5% MoM); Meats (+5.1% YoY; +1.0% MoM); and Vegetables (+0.8% YoY; +2.6% MoM). Note that, the price of cooking oil was persistently high above 30% YoY following the rationalisation of the Cooking Oil Price Stabilisation Scheme (COSS) since November last year. • Inflation to moderate in 2H? YTD, inflation rose by 4.3% YoY. Prices of goods are leveling and already peak by 5.1% YoY in March 2017 - the highest in 8 years. Moving forth, the index is likely to show signs of stability with our forecast of 3.5% YoY increase in the 2H. For 2017 as a whole, we maintain our projection at 3.9% due to pick up in overall transport index before inflation to normalise in 2018. (2018 forecast: +3.00%) • OPR to increase? As we mentioned previously, there is room for Bank Negara Malaysia to increase the Overnight Policy Rate (OPR) amid rising inflationary pressure as compared to last year. Otherwise, chances are very high to witness a prolonged negative real interest rate environment as we are now in the fifth month of negative rate of return. A negative real interest rate environment could induce speculative investments. Also supporting our argument is robust economic performance as reflected by a sturdy 5.6% YoY GDP growth in 1Q17 and the economy is expected to remain resilient throughout the year as suggested by forward looking indicators. We have raised our 2017 GDP forecast to 5.1% YoY (previous: 4.5% YoY), spearheaded by domestic demand. The next MPC meeting is scheduled on 13 July 2017. Page 2 of 3
17. TA Securities 22-Jun-17 A Member of the TA Group Figure 3 : CPI Sub-components for 6 Months (December 2016-May 2017) YoY % Sub Components Wt. Consumer Price Index (CPI) 100.0 Food & Non-Alcoholic Beverages 30.2 Alcoholic Beverages & Tobacco 2.9 Clothing and Footwear 3.3 Housing, Water, Electricity, Gas & Other Fuels 23.8 Furnishings, Household Equip. & Routine Household 3.8 Maintenance Health 1.7 Transport 13.7 Communication 5.2 Recreation Services & Culture 4.9 Education 1.1 Restaurants and Hotels 2.9 Miscellaneous Goods & Services 6.5 2016 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 5M17 2.1% 3.9% 17.2% -0.4% 2.4% 1.8% 3.7% 0.1% -0.5% 2.1% 3.2% 4.0% 0.2% -0.7% 1.9% 4.5% 4.3% 0.2% -0.2% 2.2% 5.1% 4.1% 0.2% -0.2% 2.1% 4.4% 4.1% 0.2% -0.1% 2.2% 3.9% 4.4% 0.2% -0.2% 2.2% 4.3% 4.1% 0.2% -0.3% 2.2% 2.4% 1.4% 1.5% 1.5% 1.5% 1.9% 2.1% 1.7% 2.7% -4.6% -1.6% 2.5% 2.2% 2.8% 2.9% 2.4% -0.6% -2.6% 3.3% 1.7% 1.9% 1.8% 2.5% 8.3% -0.2% 3.2% 2.0% 2.1% 1.4% 2.4% 17.9% -0.3% 3.1% 1.7% 2.3% 1.4% 2.6% 23.0% -0.2% 3.0% 1.7% 2.3% 1.3% 2.8% 16.7% -0.3% 3.0% 1.7% 2.4% 1.5% 2.9% 13.1% -0.3% 2.9% 1.7% 2.3% 1.3% 2.6% 15.7% -0.3% 3.1% 1.7% 2.3% 1.4% Sources: Department of Statistics, TA Securities Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
18. Thursday , 22 June, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
19. T e c h n i c a l TA Securities V i e w Thursday , June 22, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Technical Stock Picks Malaysia FBM KLCI: 1,775.57 (-5.14, -0.29%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD EKOVEST GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 21/6/2017 1775.57 2.67 3.95 5.10 4.98 6.65 4.99 5.40 9.58 5.50 5.90 4.49 1.06 5.59 9.59 1.36 5.09 9.59 14.18 6.65 3.70 3.11 0.41 0.71 0.41 4.07 1.93 1.62 1.20 1.30 1.63 1.61 2.24 1.26 1.35 1.33 1.27 1.61 1.98 1.20 0.94 2.04 Change (5.14) 0.00 -0.02 0.03 -0.04 0.01 0.00 -0.01 -0.06 -0.09 -0.09 -0.01 -0.03 -0.03 -0.05 -0.01 0.01 -0.02 -0.14 0.04 -0.01 -0.06 -0.01 -0.04 -0.02 -0.01 0.01 -0.01 0.03 0.02 0.00 0.01 -0.01 -0.02 -0.09 -0.03 0.00 -0.06 0.00 -0.04 -0.03 -0.03 Tel: +603-2167-9607 High Low 1,782.09 1,773.66 2.69 3.96 5.11 5.03 6.68 5.00 5.42 9.69 5.60 5.98 4.58 1.09 5.61 9.64 1.38 5.10 9.63 14.32 6.65 3.72 3.17 0.42 0.75 0.43 4.08 1.95 1.66 1.24 1.31 1.63 1.64 2.24 1.26 1.43 1.36 1.27 1.68 2.00 1.24 0.96 2.07 2.67 3.92 5.04 4.94 6.62 4.96 5.37 9.56 5.49 5.90 4.45 1.04 5.53 9.55 1.35 5.05 9.56 14.10 6.60 3.67 3.09 0.41 0.71 0.40 4.06 1.89 1.59 1.16 1.28 1.62 1.59 2.23 1.26 1.35 1.31 1.23 1.60 1.97 1.20 0.93 2.04 Bollinger Bands Lower Mid Upper 1,760.09 1,779.80 1,799.51 2.58 3.85 4.85 4.87 6.19 4.93 5.30 9.58 5.41 5.63 4.45 1.09 5.68 9.33 1.26 4.95 9.24 13.54 6.39 3.61 2.90 0.39 0.73 0.40 4.04 1.89 1.52 1.16 1.25 1.59 1.56 2.23 1.25 1.39 1.33 1.21 1.68 1.96 1.20 0.87 2.05 2.72 4.09 5.09 5.01 6.56 4.99 5.37 9.84 5.76 5.92 4.53 1.15 6.17 9.52 1.32 5.21 9.50 14.08 6.53 3.80 3.19 0.42 0.76 0.42 4.10 1.93 1.60 1.21 1.28 1.63 1.65 2.26 1.28 1.50 1.41 1.31 1.84 2.04 1.26 0.93 2.12 2.86 4.33 5.32 5.15 6.93 5.05 5.43 10.09 6.12 6.20 4.60 1.22 6.66 9.72 1.37 5.47 9.76 14.62 6.66 3.98 3.48 0.44 0.79 0.43 4.15 1.97 1.67 1.25 1.31 1.68 1.73 2.30 1.32 1.62 1.48 1.40 1.99 2.12 1.31 1.00 2.20 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 48.05 1,786.37 1,777.46 1,767.82 DMI DI + DI - ADX 23.13 20.17 32.11 39.73 38.98 48.22 44.11 66.61 47.40 55.91 40.53 40.84 43.68 44.72 19.29 10.19 61.84 59.83 36.02 68.83 55.47 64.23 40.47 42.16 39.74 32.14 41.48 37.02 53.70 55.52 44.70 55.46 44.60 36.17 44.03 40.92 41.68 34.21 34.89 29.86 42.93 38.18 51.45 37.92 19.30 10.81 23.23 18.32 32.63 7.74 22.38 9.87 19.40 15.21 22.13 4.03 5.06 23.63 27.47 10.37 27.05 26.31 22.47 18.29 19.91 18.27 11.16 29.89 10.98 16.66 28.69 19.25 15.30 18.55 23.01 27.22 24.06 26.37 17.38 14.42 14.23 15.00 15.03 32.03 16.88 2.68 3.98 5.02 5.00 6.68 4.98 5.38 9.74 5.66 6.00 4.52 1.13 6.01 9.60 1.33 5.10 9.60 14.33 6.58 3.77 3.28 0.41 0.76 0.42 4.08 1.94 1.62 1.19 1.29 1.63 1.62 2.26 1.27 1.49 1.40 1.29 1.81 2.01 1.26 0.96 2.11 2.78 4.18 5.22 5.10 6.35 5.01 5.38 9.84 5.78 5.96 4.55 1.17 6.29 9.47 1.32 5.29 9.44 14.01 6.51 3.83 3.28 0.45 0.76 0.42 4.18 1.92 1.58 1.22 1.29 1.66 1.69 2.27 1.31 1.45 1.49 1.38 1.86 2.05 1.27 0.92 2.17 2.82 4.15 5.19 5.11 6.06 5.05 5.30 9.76 5.76 6.01 4.54 1.20 6.35 9.37 1.29 5.29 9.39 13.93 6.48 3.90 3.26 0.44 0.77 0.43 4.29 1.89 1.55 1.27 1.28 1.67 2.21 2.28 1.33 1.32 1.54 1.45 1.91 2.00 1.26 0.91 2.14 23.08 23.96 18.89 23.97 15.03 15.47 19.48 25.39 26.72 21.74 16.60 38.55 51.59 18.41 13.29 26.82 14.20 15.71 13.21 19.64 31.26 26.22 31.80 34.36 26.10 14.19 13.51 19.84 10.81 23.79 24.18 28.35 29.98 28.10 32.37 33.06 41.32 22.35 26.65 23.76 26.27 21.30 26.39 13.08 24.42 50.47 30.42 9.70 23.05 16.63 14.97 19.15 52.02 48.66 21.58 28.25 34.00 33.44 49.77 15.30 9.67 20.45 20.97 14.45 20.17 35.85 21.41 49.40 28.82 16.53 18.13 13.58 14.99 15.81 35.31 25.89 30.12 18.38 24.75 19.86 38.68 16.64 www.taonline.com.my Diff 2.96 (3.78) (13.15) 4.34 (5.65) 17.60 (7.73) 2.90 (15.52) (7.32) (6.54) 5.53 (34.51) (46.52) 5.21 14.18 (16.44) 12.85 10.60 9.26 (1.35) (11.35) (7.95) (4.47) (15.12) 2.47 2.47 15.18 (0.59) 4.49 (5.24) (1.18) (1.13) (5.92) (1.73) (14.99) (18.63) (27.10) (7.35) (11.63) 8.28 (9.39) Line 4.95 -0.05 -0.07 -0.05 -0.04 0.19 -0.02 0.02 -0.04 -0.05 0.00 -0.02 0.03 -0.17 0.08 0.02 -0.08 0.07 0.14 0.05 -0.05 -0.01 -0.01 -0.01 0.00 -0.06 0.01 0.03 -0.02 0.00 -0.01 -0.14 -0.01 -0.02 0.03 -0.05 -0.05 -0.05 -0.01 -0.01 0.02 -0.02 MACD Signal Diff 6.15 (1.205) -0.05 -0.06 -0.06 -0.04 0.21 -0.02 0.02 0.00 -0.03 -0.01 -0.01 0.02 -0.11 0.08 0.01 -0.06 0.07 0.12 0.03 -0.04 0.00 -0.01 0.00 0.00 -0.07 0.02 0.02 -0.03 0.00 -0.02 -0.17 0.00 -0.02 0.06 -0.05 -0.06 -0.03 0.00 0.00 0.02 -0.01 0.001 (0.016) 0.008 0.004 (0.025) 0.005 (0.002) (0.036) (0.027) 0.002 (0.001) 0.003 (0.064) (0.002) 0.002 (0.013) 0.003 0.013 0.011 (0.011) (0.013) (0.001) (0.004) 0.002 0.007 (0.005) 0.003 0.002 0.001 0.003 0.033 (0.002) (0.000) (0.031) (0.001) 0.004 (0.019) (0.013) (0.007) 0.001 (0.013) DMI MACD Recent Signal BUY SELL DMI MACD Signal Change - SELL SELL BUY SELL BUY SELL BUY SELL SELL SELL BUY SELL SELL BUY BUY SELL BUY BUY BUY SELL SELL SELL SELL SELL BUY BUY BUY SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL BUY SELL SELL SELL SELL - BUY SELL BUY BUY SELL BUY SELL SELL SELL BUY SELL BUY SELL SELL BUY SELL BUY BUY BUY SELL SELL SELL SELL BUY BUY SELL BUY BUY BUY BUY BUY SELL SELL SELL SELL BUY SELL SELL SELL BUY SELL SELL SELL - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
20. Technical Comments : Buy Weakness in AirAsia & AirAsia X Further weakness in AirAsia to the 76.4%FR (RM3.04), with firmer support from the 100-day ma (RM3.01), should attract bargain hunters looking for oversold rebound towards the recent high of RM3.42, with strong resistance from the 16/5/17 peak (RM3.59). Likewise, any selling dips in AirAsia X to the 50%FR (38sen) should encourage buying ahead of oversold rebound towards the 76.4%FR (44sen), with tougher upside hurdle from the Aug 2016 peak of 49.5sen. AIRASIA Upper Middle RM3.11 (-0.06) BOLLINGER BANDS RM RM 3.48 3.19 10-day 30-day RM 2.90 50-day Lower DMI Recent Signal SELL 3.26 Recent Signal SELL Signal Change AIRASIA X Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 3.28 RM 3.28 BOLLINGER BANDS RM RM RM DMI RM0.405 (-0.005) 0.44 0.42 0.39 SELL SIMPLE MOVING AVERAGES RM 0.41 RM 0.45 RM 0.44 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4