Bursa Malaysia Daily Market Report - 23 March

Transcription

1. Friday , 23 March, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . S c ie n t e x Be rh a d : Pr o m is in g G ro w th O u tlo o k 2 . U n it e d M a la c c a Be rh a d : N e a r- T e rm E a rn in g s R e m a in s Su b du e 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 , D a i ly M on e y Fl ow , D ai l y St o ck S cr een (L o c al ) 2. D ai l y For ei gn T ech n i c al St o ck W a t ch ( 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
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Daily Market Commentary Friday , 23 March 2018 TA Research, e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (22.03.2018) (mil) Main Market 1,515.9 Warrants 346.9 ACE Market 421.2 Bond 2.7 ETF 2.2 LEAP 0.1 Total 2,288.9 Off Market 48.8 Volume +/-chg (RMmn) -131.3 1,944.2 21.3 58.9 52.9 59.9 -1.1 0.2 0.1 2.6 0.1 0.0 2,065.9 9.1 143.6 Value Value/ +/-chg Volume Up Down -388.6 1.28 242 343 6.4 0.17 83 117 2.4 0.14 36 52 -0.3 0.08 3 3 0.2 1.20 1 2 0.0 0.22 0 1 0.90 365 518 -74.3 2.94 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP March Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA % chg % YTD chg 1,876.87 13,160.05 15,480.23 1,870.50 11.07 62.51 -34.78 9.00 0.59 0.48 -0.22 0.48 4.46 1.68 -9.21 4.79 23,957.89 7,166.68 6,952.59 21,591.99 2,496.02 31,071.05 3,491.37 1,798.55 6,254.07 3,263.48 1,849.60 5,937.15 -724.42 -178.61 -86.38 211.02 11.05 -343.47 -19.76 -2.88 -58.76 -17.47 -9.01 -13.12 -2.93 -2.43 -1.23 0.99 0.44 -1.09 -0.56 -0.16 -0.93 -0.53 -0.48 -0.22 -3.08 3.81 -9.56 -5.15 1.16 3.85 2.60 2.56 -1.60 -1.32 -2.62 -2.11 Blue chips rose further on Thursday, but the broader market were softer on profit-taking interest after the US central bank raised interest rates and indicated at least two more rate hikes this year. The KLCI added 11.07 points to end at the day's high of 1,876.87, off the opening low of 1,865.83, but losers beat gainers 518 to 365 on flat turnover of 2.28bn shares worth RM2.06bn. The sharp sell off on Wall Street overnight should spillover to trigger profit-taking and accelerate correction. The 2 Feb peak of 1,880 is a key resistance level, while next significant hurdle will be from the record high of 1,896 from July 2014. Immediate support is revised upwards to the 10day moving average level now at 1,856, followed by the 30-day ma at 1,850, and then the 50-day ma at 1,845. Any near-term spikes on DiGi shares above the 50%FR (RM4.75) to the 61.8%FR (RM4.85) should attract profit-taking interest, while sell-offs should meet support at the 23.6%FR (RM4.52) and RM4.40, matching the Nov 2017 trough. Likewise, brief rallies on Maxis towards the 50%FR (RM5.98) or 38.2%FR (RM6.12) should encounter profit-taking resistance, while corrections should be cushioned at the 76.4%FR (RM5.65) and RM5.50, matching the July 2017 bottom. News Bites • Khazanah Nasional Bhd is buying a 100% stake in the Prince Court Medical Centre from Petronas for an undisclosed sum. It will rope in IHH Healthcare Bhd to provide shared services support and operational improvement initiatives. • Bina Puri Holdings Bhd and Titijaya Land Bhd have entered into a new joint venture to develop a residential and commercial project on an 11.2-acre land adjacent to the monorail depot in Brickfields. • Sapura Energy Bhd will commence production at the B15 field offshore Sarawak with the first gas milestone achieved within two years of the sanction of its field development plan. • Eversendai Corp Bhd is confident that its first-completed liftboat Vahana Aryan will secure a charter contract within the next two to three months, as demand for liftboats is overwhelming supply worldwide. • Muhibbah Engineering (M) Bhd won an RM32.7mn contract for the Top 10 KLCI Movers Based on Light Rail Transit Line 3 project. It is tasked to design, supply, install and Off Market Mkt Cap. test the noise barrier for the line that links Bandar Utama in Petaling Jaya with Klang. (mn) (RM) Counter Mkt Cap. Chg Vol. • Advancecon Holdings Bhd clinched its single-largest contract win of (RM’mn) (RM) (mn) SIME 10.0 @ 2.62 RM370.1mn to undertake earthworks and civil works for the West MAYBANK 114,637 0.26 14.52 VIZIONE 9.6 @ 0.15 Coast Expressway project. PBBANK 92,830 0.36 8.12 MAYBANK 8.2 @ 10.38 • United Malacca Bhd, in announcing its 3QFY18 net profit which fell AXIATA 49,769 0.01 3.37 40% to RM20.1mn from RM33.7mn last year, warns that its FY18 will AIRASIA 6.3 @ 3.94 record "substantially lower" profit than a year ago. HLBANK 39,316 0.52 0.36 WEGMANS 4.0 @ 0.26 • Scientex Bhd net profit for 2QFY18 rose 4.3% to RM68.0mn from SIMEPLT 38,085 0.01 1.56 MMAG-PA 3.6 @ 0.06 RM65.2mn a year earlier, driven mainly by growth its manufacturing NESTLE 33,252 9.20 0.27 VERTICE 2.3 @ 0.87 segment. GENM 29,651 0.07 11.41 REDIDEA 1.5 @ 0.40 • Berjaya Land Bhd swung into a net loss of RM9.0mn in 3QFY18, IOICORP 29,005 0.08 2.91 ASIABRN 1.0 @ 0.76 compared to a net profit of RM33.8mn a year ago on unfavourable KLK 27,157 0.04 0.50 foreign exchange loss and lower group's share of profit from Berjaya PPB 22,430 0.14 1.70 Kyoto Development (S) Pte Ltd. • Bank Negara Malaysia recorded a US$200mil increase in its international reserves at US$103.9bil as at March 15, which is sufficient to finance Exchange Rate Commodities Futures 7.3 months of retained imports and is 1.1 times the short-term external USD/MYR 3.9115 0.000 Palm Oil (RM/mt) 2,447.00 1.00 debt. Crude Oil ($/Barrel) 64.21 -1.28 USD/JPY 105.62 -0.710 • The manufacturing sector in Japan continued to expand in March, Gold ($/tr.oz.) 1,328.90 -3.60 EUR/USD 1.232 0.0035 albeit at a slower pace with a manufacturing PMI score of 53.2. • The number of Americans laid off from their jobs rose slightly last week Important Dates but remained near multi-decade lows. About 229,000 Americans filed for unemployment benefits. • The Bank of England moved closer to raising interest rates as early as HARTA - 1:1 Bonus Issue - BI of up to 1,714.3m shares. May after keeping the benchmark unchanged on Thursday. The 1 bonus share for every 1 existing share held. Monetary Policy Committee voted 7-2 to hold the rate at 0.5%. Ex-Date: 23/03/2018. Entitlement Date: 27/03/2018. • German business sentiment deteriorated to an 11-month low in March LISTING ON: 28/03/2018. as firms were less optimistic about the months ahead due to fears of trade conflicts led by the US, survey data from the Munich-based Ifo Institute showed. P&O - 1:6 Bonus Issue - BI of up to 41.0m shares. • The jobless rate in Australia came in at a seasonally adjusted 5.6% in 1 bonus share for every 6 existing shares held. February. That was above expectations for 5.5%, which would have Ex-Date: 27/03/2018. Entitlement Date: 29/03/2018. been unchanged from the January reading. LISTING ON: 30/03/2018. 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. Friday , March 23, 2018 FBMKLCI: 1,876.87 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 U.S. Sell Off On Trade War Fears To Spillover Blue chips rose further on Thursday, but the broader market were softer on profit-taking interest after the US central bank raised interest rates and indicated at least two more rate hikes this year. The KLCI added 11.07 points to end at the day’s high of 1,876.87, off the opening low of 1,865.83, but losers beat gainers 518 to 365 on flat turnover of 2.28bn shares worth RM2.06bn. Key Resistance From 1,880/1,896; Supports at 1,856/1,850 The sharp sell off on Wall Street overnight should spillover to trigger profit-taking and accelerate correction. The 2 Feb peak of 1,880 is a key resistance level, while next significant hurdle will be from the record high of 1,896 from July 2014. Immediate support is revised upwards to the 10-day moving average level now at 1,856, followed by the 30-day ma at 1,850, and then the 50-day ma at 1,845. Take Profit DIGI & MAXIS Any near-term spikes on DiGi shares above the 50%FR (RM4.75) to the 61.8%FR (RM4.85) should attract profit-taking interest, while sell-offs should meet support at the 23.6%FR (RM4.52) and RM4.40, matching the Nov 2017 trough. Likewise, brief rallies on Maxis towards the 50%FR (RM5.98) or 38.2%FR (RM6.12) should encounter profit-taking resistance, while corrections should be cushioned at the 76.4%FR (RM5.65) and RM5.50, matching the July 2017 bottom. Asian Markets Fluctuate as Trade War Fears Return Asian markets traded mixed Thursday in what proved to be a choppy session after the U.S. Federal Reserve raised interest rates for the first time this year. The Federal Reserve raised rates by 25 basis points to a range of 1.5 percent to 1.75 percent at the end of its policy meeting on Wednesday, as was widely expected. The central bank indicated that it still expected two more hikes this year, but upgraded its projection for the benchmark rate in 2019 to 2.9 percent. With the Fed meeting over, investors are watching Trump, who is due to sign a memo on imposing tariffs on Chinese imports later in the day. Concerns about a trade war between the world’s two largest economies have kept many investors on guard. U.S. Trade Representative Robert Lighthizer said on Wednesday the tariffs would target China’s high-technology sector and could also include restrictions on Chinese investments in the United States. Japan’s Nikkei share average rose in choppy trade despite a strong yen with pension funds and retail investors scooping up recently-battered stocks with attractive valuations. The Nikkei ended 1.0 percent higher at 21,591.99. Elsewhere, South Korea's benchmark Kospi advanced 0.44 percent to close at 2,496.02, as brokerages and oil-related stocks notched gains. In Australia, the S&P/ASX 200 slipped 0.22 percent in choppy trade to close at 5,937.20 as declines were seen in all sectors except energy. Over on the mainland, the Shanghai composite lost 0.52 percent to close at 3,263.83 and the Shenzhen composite edged lower by 0.49 percent to end at 1,849.60. Page 1 of 7
4. 23-Mar-18 Dow Plunges 724 Points as Trade War Fears Rock Wall Street U .S. stocks fell sharply on Thursday, with major indexes suffering their worst day in weeks as the treat of a trade war with China sparked a widespread selloff. The Trump administration instructed the office of the U.S. Trade Representative to draw up a list of tariffs on Chinese products totaling up to USD60 billion. The tariffs are expected to target sensitive technologies that the U.S. considers vital to the U.S. economy in the years ahead, and the announcement follows a similar one focused on steel and aluminum. Investors are concerns that protectionist trade policies could be met with retaliatory measures by major trading partners, and that a trade war could contribute to inflation in the economy. China will have space to respond, reducing the risk of immediate retaliation from Beijing. Also weighing on sentiment was the latest policy statement by the Federal Reserve a day earlier, which raised questions about interest-rate policy, the ongoing weakness at Facebook, which led the technology sector lower and the resignation of President Donald Trump’s lead attorney, which added another element of political uncertainty for investors. The Dow Jones Industrial Average fell 724.42 points, or 2.93 percent, to 23,957.89, the S&P 500 lost 68.24 points, or 2.52 percent, to 2,643.69, and the Nasdaq Composite dropped 178.61 points, or 2.43 percent, to 7,166.68. Page 2 of 7
5. 23-Mar-18 News In Brief Corporate Khazanah Nasional Bhd is buying a 100 % stake in the Prince Court Medical Centre (PCMC) from Petroleum Nasional Bhd for an undisclosed sum as it seeks to build up the healthcare services sector in Malaysia. The sovereign wealth fund said yesterday, it had signed a share sale and purchase agreement with the national oil corporation to acquire the private healthcare hospital at an agreed price comparable to market assessment, payable upon completion of the transaction. “Khazanah anticipates the transaction to be completed by end of Q2 2018,” it said. Khazanah will also rope in IHH Healthcare Bhd to provide shared services support and operational improvement initiatives. (The Star) Comment: The news was not a surprise to us as various sources have been talking about it. We are neutral on this that IHH will collaborate with Khazanah for shared services support and operational initiatives at PCMC. Khazanah holds 41.1% stake in IHH. IHH was given a right of first offer to acquire PCMC during a pre-agreed period. PCMC is a 270-bed hospital located only 4km away from IHH’s Gleneagles KL hospital. Earnings wise, we understand that PCMC has been making losses since its inception in 2007. In FY16, it registered a loss of RM4.1mn. However, we believe that PCMC was profitable in FY17 and IHH will have no problem acquiring it as they have a cash pile of RM6.1bn as at 31 December 2017. Maintain sell on IHH, TP RM6.40 based on SOTP valuation. Bina Puri Holdings Bhd and Titijaya Land Bhd have entered into a new joint venture to develop a residential and commercial project on an 11.2-acre land adjacent to the monorail depot in Brickfields. It also said that another wholly-owned unit of the group, Bina Puri Construction Sdn Bhd, plans to dispose of its 70% stake in BP Development to Titijaya for RM2.5mn. Under the JV, Bina Puri and Titijaya will cooperate to develop the land via BP Development which they would own on a 30:70 basis. (Bursa Malaysia) Sapura Energy Bhd will commence production at the B15 field offshore Sarawak with the first gas milestone achieved within two years of the sanction of its field development plan. (The Edge) Eversendai Corp Bhd is confident that its first-completed liftboat Vahana Aryan will secure a charter contract within the next two to three months, as demand for liftboats is overwhelming supply worldwide. (The Edge) Muhibbah Engineering (M) Bhd’s 49%-owned joint-venture company won an RM32.7mn contract for the Light Rail Transit Line 3 project. It is tasked to design, supply, install and test the noise barrier for the line that links Bandar Utama in Petaling Jaya with Klang. Construction works will start immediately and are expected to be completed by 4QCY19. (Bursa Malaysia) Advancecon Holdings Bhd clinched its single-largest contract win of RM370.1mn to undertake earthworks and civil works for the West Coast Expressway project. The contract is for a duration of 30 months from the date of site possession and will be funded via internally generated funds or borrowings. (Bursa Malaysia) Page 3 of 7
6. 23-Mar-18 Sanichi Technology Bhd plans to buy a Cessna Citation aircraft for USD2 .5mn (RM9.8mn) to fly key personnel frequently in order to maintain strong business relationship overseas. It incorporated a US-based company Air King Inc (AKI) in Wyoming to enter into a purchase agreement with the vendor, Steve Wilson. The proposed incorporation of AKI and acquisition will be funded from internally generated funds. (Bursa Malaysia) United Malacca Bhd, in announcing its 3QFY18 net profit which fell 40% to RM20.1mn from RM33.7mn last year, warns that its FY18 will record "substantially lower" profit than a year ago. This is because it expects lower crude palm oil (CPO) and palm kernel (PK) prices in the final quarter of its FY18, which will end on April 30, 2018. The lower profitability in 3QFY18 was also due to lower average prices of CPO and PK. 9MFY18 net profit dropped 29% YoY to RM39.3mn from RM55.6mn. (Bursa Malaysia) Scientex Bhd net profit for 2QFY18 rose 4.3% to RM68.0mn from RM65.2mn a year earlier, driven mainly by growth its manufacturing segment. For 1HFY18, Scientex posted a net profit of RM140.4mn against RM117.2mn previously, on the back of revenue RM1.29bn versus RM1.12bn. (Bursa Malaysia) Berjaya Land Bhd swung into a net loss of RM9.0mn in 3QFY18, compared to a net profit of RM33.8mn a year ago on unfavourable foreign exchange loss and lower group's share of profit from Berjaya Kyoto Development (S) Pte Ltd, which had fewer Four Seasons Residences sold. For 9MFY18, BLand posted a net loss of RM97.4mn, against a net profit of RM187mn the year before. (Bursa Malaysia) Page 4 of 7
7. 23-Mar-18 N e w s I n B r i e f Economy Asia Bank Negara Records Higher Foreign Reserves as at March 15 Bank Negara Malaysia recorded a US $200mil increase in its international reserves at US$103.9bil as at March 15 from a fortnight ago. “The reserves position is sufficient to finance 7.3 months of retained imports and is 1.1 times the short-term external debt,” it said. This was an increase of US$200mil from the US$103.7bil as at Feb 28. The reserves position then was sufficient to finance 7.2 months of retained imports. (BNM) Japan Manufacturing PMI Slows to 53.2 in March – Nikkei The manufacturing sector in Japan continued to expand in March, albeit at a slower pace with a manufacturing PMI score of 53.2. That's down from 54.1 in February, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. Individually, new orders increased, although they were at the slowest rate in five months. Also, job creation eased amid the softest pace of output growth since July. (RTT) Japan All Industry Activity Falls as Expected in January Japan's all industry activity index fell 1.8% month-over-month in January, reversing a 0.6% rise in December. Industrial production contracted 6.8% over the month and tertiary activity index dropped by 0.6%. Meanwhile, construction output registered an increase of 1.7%. On a yearly basis, all industry activity growth eased slightly to 1.8% in January from 1.9% in December. (RTT) Australia Unemployment Rate Rises to 5.6% in February The jobless rate in Australia came in at a seasonally adjusted 5.6% in February. That was above expectations for 5.5%, which would have been unchanged from the January reading. The Australian economy added 18,000 jobs last month - shy of expectations for the addition of 20,000 jobs following the 16,000-job increase in the previous month. The participation rate improved to 65.7%, beating expectations for 65.6% - which would have been unchanged. (RTT) United States Proxy for U.S. Layoffs Remains Low The number of Americans laid off from their jobs rose slightly last week but remained near multi-decade lows, fresh evidence of the labor market’s strength. About 229,000 Americans filed for unemployment benefits, known as initial jobless claims, in the week ended March 17, the Labor Department said. That was 3,000 above the prior week’s level and higher than economists’ expectations of 225,000 new claims. But layoffs remain near the lowest level since the 1970s. They have held below 300,000 for about three years, the longest streak since the 1970s, when the U.S. population was much smaller. The four-week moving average of claims, considered a more-reliable estimate because it reduces volatility in the data, climbed slightly to 223,750. (WSJ) Strong Upturn in US Private Sector Output Continues March data revealed another strong increase in private sector output, together with a further solid payroll gain and elevated price pressures. At 54.3 in March, down from 55.8 in the previous month, the seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index has remained above the 50.0 no-change threshold for just over two years. The latest upturn in business activity was faster than the average over this period, driven by solid rises in both manufacturing production and service sector output. There were also positive signals for the near-term growth outlook, with new order volumes expanding at a strong pace and payroll numbers picking up to the greatest extent since May 2015. Moreover, business confidence towards growth prospects over the coming 12 months remained among the highest seen over the past three years. (Markit Economics) Page 5 of 7
8. 23-Mar-18 Europe and Uni ted Kingdom BOE Keeps Interest Rate Unchanged as Minority Urges Hike The Bank of England moved closer to raising interest rates as early as May after keeping the benchmark unchanged on Thursday . The Monetary Policy Committee voted 7-2 to hold the rate at 0.5%. All 62 economists in a Bloomberg survey predicted no change. Policy makers Ian McCafferty and Michael Saunders wanted an immediate increase, arguing that slack in the economy has been used up and wage growth is accelerating. The BOE reiterated that U.K. decision to leave the European Union is the most significant influence on the outlook. The economy has evolved in line with its most recent forecasts published in February, it said. (Bloomberg) Supermarkets Spur Stronger-Than-Expected U.K. Retail Sales U.K. retail sales rose more than expected in February as spending at supermarkets jumped, but a poor month for non-food stores suggests the squeeze on living standards is continuing to weigh on consumers. The volume of goods sold in stores and online climbed 0.8% from January, double the increase forecast by economists. The increase followed declines in the previous two months. Sales excluding auto fuel increased by 0.6% in February and were up just 1.1% from a year earlier. And renewed weakness is expected this month, when snow and freezing temperatures gripped the country. Sales will fall in the first quarter, exerting a drag on the economy, unless March sees an increase of 0.6%. (Bloomberg) ECB Sees Strong Eurozone Growth Momentum Ahead The Eurozone economy is enjoying robust growth and may even outperform expectations in the near term, the European Central Bank said in a regular economic bulletin on Thursday. The labour market continues to exhibit “strong dynamics”, private consumption is rising, exports are growing and both construction and non-construction investment are picking up, all pointing to robust economic expansion ahead, the ECB said. (Reuters) Eurozone Expansion Slows to Weakest Since Start of 2017 Eurozone business activity grew at its slowest rate for over a year in March, according to the flash IHS Markit Eurozone PMI. At 55.3, down from 57.1 in February, the headline output index was the lowest since January of last year and signalled a second successive monthly easing in the rate of expansion. January’s PMI had been the highest since June 2006. The flash data are an early calculation of survey data based on approximately 85% of normal replies received each month. Output growth moderated in both manufacturing and services, the latter seeing business activity grow at the slowest rate for five months while factory output increased at the weakest pace since January 2017. (Markit Economics) Eurozone Trade Surplus Grows in January The euro area current account surplus increased notably at the start of the year, data from the European Central Bank showed. The current account surplus rose to a 4-month high of EUR 37.6 billion in January from EUR 31.0 billion in December. The surplus on trade in goods shrank to EUR 27.1 billion in January from EUR 31.1 billion in the previous month. Meanwhile, surplus on services climbed to EUR 9.6 billion from EUR 7.4 billion. (RTT) German Ifo Business Sentiment at 11-Month Low German business sentiment deteriorated to an 11-month low in March as firms were less optimistic about the months ahead due to fears of trade conflicts led by the US, survey data from the Munich-based Ifo Institute showed. Elsewhere, the Purchasing Managers' survey showed that the Germany's private sector expanded at the slowest pace in eight months in March. The business climate index dropped to 114.7 from 115.4 in February, Ifo said. The score was forecast to fall to 114.6. According to Ifo, companies were slightly less satisfied with their current business situation, which nevertheless remained at a high level. (RTT) Page 6 of 7
9. 23-Mar-18 Share Buy-Back : 22 March 2018 Company AMPROP DUFU E&O KFIMA KSL LEESK MALAKOF PANTECH REXIT SNTORIA SUNWAY SYF SYSCORP UNIMECH Bought Back Price (RM) 41,000 254,000 10,000 25,000 27,400 689,400 2,000,000 100,000 98,000 80,000 600,000 895,100 135,000 10,000 0.715/0.70 1.12/1.08 1.43 1.49/1.48 0.98 0.60/0.54 0.875/0.87 0.57 0.71/0.705 0.655/0.645 1.55/1.52 0.30 0.29/0.285 0.98 Total Treasury Shares 0.715/0.705 16,649,700 1.12/1.06 10,822,400 1.43/1.42 26,788,747 1.50/1.46 236,300 0.985/0.965 17,257,600 0.62/0.535 4,687,900 0.885/0.865 50,608,000 0.57 2,386,624 0.71/0.705 11,047,900 0.655/0.645 5,799,100 1.55/1.50 37,420,262 0.305/0.295 1,304,800 0.315/0.275 2,506,100 0.995/0.97 7,448,010 Source: Bursa Malaysia Hi/Lo (RM) 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 22-Mar-18 AUTOMOBILE BAUTO 2.29 2.33 1.7% Buy 2,654 0.52 12.1 19.0 18.9 12.0 4.8 5.0 2.47 -7.3 1.84 24.5 4.1 MBMR 2.48 2.68 8.1% Hold 969 0.70 24.7 26.9 10.0 9.2 2.4 2.8 2.60 -4.6 2.01 23.4 12.7 PECCA 1.31 1.62 23.7% Buy 242 0.47 9.7 10.9 13.5 12.0 3.8 3.8 1.70 -22.9 1.25 4.8 -15.5 SIME 2.62 2.55 -2.7% Sell 17,818 1.63 13.2 16.4 19.9 16.0 1.3 1.6 3.06 -14.4 2.03 29.3 18.6 UMW 6.50 5.52 -15.1% Sell 7,594 1.46 28.6 40.2 22.7 16.2 2.2 3.1 6.98 -6.9 4.70 38.3 25.0 BANKS & FINANCIAL SERVICES ABMB 4.33 4.60 6.2% Buy 6,703 1.19 32.6 35.8 13.3 12.1 3.7 3.7 4.49 -3.6 3.62 19.6 6.1 AFFIN 2.53 2.40 -5.1% Sell 4,916 0.93 22.2 23.9 11.4 10.6 3.2 3.2 2.98 -15.0 2.22 13.9 9.5 AMBANK 4.18 4.70 12.4% Buy 12,599 1.42 38.1 44.4 11.0 9.4 4.3 4.3 5.70 -26.7 3.92 6.6 -5.2 CIMB 7.29 8.60 18.0% Buy 67,254 1.64 58.2 59.9 12.5 12.2 4.0 4.1 7.39 -1.4 5.32 37.0 11.5 HLBANK 19.22 19.30 0.4% Hold 39,316 0.85 116.8 126.8 16.5 15.2 2.5 2.5 20.02 -4.0 13.44 43.0 13.1 MAYBANK 10.54 11.50 9.1% Buy 114,637 1.00 74.1 78.3 14.2 13.5 5.2 5.2 10.58 -0.4 8.89 18.6 7.6 PBBANK 24.04 27.30 13.6% Buy 92,830 0.70 153.3 166.5 15.7 14.4 2.4 2.5 24.12 -0.3 19.86 21.0 15.7 RHBBANK 5.40 6.10 13.0% Buy 21,654 1.50 54.3 59.0 9.9 9.2 2.8 2.8 5.61 -3.7 4.71 14.6 8.0 BURSA 10.98 11.80 7.5% Buy 5,902 0.89 43.9 45.0 25.0 24.4 3.3 3.3 11.48 -4.4 9.30 18.0 8.5 -14.8 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 BUILDING MATERIALS ANNJOO 3.29 4.34 31.9% Buy 1,705 1.32 43.7 46.6 7.5 7.1 6.6 7.5 3.98 -17.3 2.27 44.9 CHINHIN 1.10 1.39 26.4% Buy 612 1.00 11.4 11.1 9.6 9.9 5.8 5.1 1.49 -26.2 1.00 10.6 -9.1 ENGTEX 1.05 1.38 31.4% Buy 447 0.83 14.2 16.1 7.4 6.5 2.0 3.0 1.52 -30.9 1.01 4.0 -4.5 GADANG 0.93 1.69 81.7% Buy 615 1.14 14.2 18.1 6.5 5.1 3.2 3.2 1.37 -32.1 0.92 1.6 -16.2 GAMUDA 5.10 6.00 17.6% Buy 12,535 0.86 34.5 35.6 14.8 14.3 2.4 2.4 5.52 -7.6 4.58 11.4 2.8 IJM 2.73 2.96 8.4% Hold 9,904 1.20 13.7 18.6 19.9 14.7 3.5 3.5 3.61 -24.4 2.55 7.1 -10.5 CONSTRUCTION KAB 0.26 0.38 47.1% Buy 8 na 31.4 37.3 0.8 0.7 3.9 4.7 0.33 -22.7 0.25 4.1 -15.0 PESONA 0.38 0.46 21.1% Buy 264 1.17 5.0 4.5 7.7 8.4 3.9 3.9 0.74 -48.3 0.36 5.6 -15.6 -13.3 SENDAI 0.75 0.55 -26.7% Sell 586 1.26 9.1 8.5 8.3 8.8 1.3 1.3 1.39 -46.0 0.64 18.1 SUNCON 2.07 2.65 28.0% Hold 2,675 0.64 14.7 16.4 14.1 12.6 3.9 4.3 2.64 -21.6 1.74 19.0 -17.5 WCT 1.32 1.50 13.6% Sell 1,857 0.99 11.3 10.8 11.7 12.2 2.3 2.3 2.48 -46.7 1.30 1.5 -18.5 LITRAK 5.76 6.26 8.7% Hold 3,040 0.32 45.6 47.1 12.6 12.2 4.3 4.3 6.15 -6.3 5.40 6.7 3.8 CARLSBG 19.02 18.09 -4.9% Buy 5,851 0.73 87.8 91.8 21.7 20.7 4.5 4.6 21.00 -9.4 14.36 32.5 24.3 HEIM 20.70 21.64 4.5% Hold 6,253 0.41 93.0 101.6 22.3 20.4 3.7 3.8 23.04 -10.2 16.98 21.9 9.5 AEON 1.75 1.97 12.6% Buy 2,457 0.18 7.5 8.9 23.2 19.6 2.6 2.9 2.52 -30.6 1.45 20.7 -0.6 AMWAY 7.50 8.59 14.5% Buy 1,233 0.49 48.3 49.9 15.5 15.0 5.3 5.5 8.10 -7.4 6.97 7.6 2.7 F&N 33.40 33.74 1.0% Buy 12,242 0.25 122.7 145.8 27.2 22.9 2.4 2.8 34.50 -3.2 23.40 42.7 23.7 CONSUMER Brewery Retail HUPSENG 1.07 1.25 16.8% Buy 856 0.41 5.7 5.9 18.8 18.1 5.6 5.6 1.28 -16.4 1.03 3.9 -1.8 JOHOTIN 1.05 1.48 41.0% Buy 326 1.01 11.1 11.7 9.4 9.0 5.7 6.2 1.76 -40.3 1.00 5.0 -13.2 NESTLE 141.80 129.90 -8.4% Hold 33,252 0.44 322.2 360.2 44.0 39.4 2.1 2.3 163.00 -13.0 78.30 81.1 37.4 PADINI 4.54 4.67 2.9% Sell 2,987 0.82 28.0 30.4 16.2 14.9 2.8 2.9 5.50 -17.5 2.86 58.9 -14.0 -27.4 POHUAT 1.30 1.78 36.9% Buy 286 0.59 20.1 23.1 6.5 5.6 4.6 6.2 2.07 -37.2 1.28 1.6 QL 4.98 5.41 8.6% Hold 8,080 0.59 12.8 14.7 38.8 33.8 0.9 1.0 5.05 -1.4 3.47 43.5 14.5 SIGN 0.59 0.92 57.3% Buy 134 0.61 6.9 9.2 8.4 6.4 4.3 6.0 1.07 -45.3 0.57 2.6 -17.0 28.14 34.72 23.4% Hold 8,035 1.47 170.8 168.8 16.5 16.7 5.7 5.7 48.50 -42.0 26.50 6.2 -29.7 GENTING 9.02 11.58 28.4% Buy 34,560 1.44 55.1 61.8 16.4 14.6 1.8 1.8 9.92 -9.1 8.63 4.5 -1.2 GENM 5.24 6.68 27.5% Buy 29,651 1.44 27.6 32.0 19.0 16.4 2.3 2.5 6.28 -16.6 4.80 9.3 -5.5 2.18 3.22 47.7% Buy 2,936 0.57 19.9 26.0 11.0 8.4 7.3 8.3 2.95 -26.1 2.06 5.8 -2.7 CCMDBIO 2.85 3.40 19.3% Buy 795 0.91 16.2 17.4 17.6 16.4 3.8 3.9 3.05 -6.6 1.97 44.7 12.6 IHH 6.02 6.40 6.3% Sell 49,602 0.74 11.9 15.0 50.7 40.3 0.5 0.6 6.33 -4.9 5.42 11.1 2.7 KPJ 0.90 1.13 25.6% Buy 3,793 0.57 3.9 4.4 23.0 20.7 2.4 2.7 1.14 -21.1 0.87 3.4 -7.2 HARTA 11.56 7.80 -32.5% Sell 38,286 1.14 25.2 28.8 45.9 40.1 1.3 1.5 6.09 -5.1 2.42 138.8 8.2 KOSSAN 7.79 9.73 24.9% Buy 4,981 0.58 37.4 42.1 20.8 18.5 2.4 2.7 8.79 -11.4 5.62 38.6 -3.9 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves SUPERMX 2.71 2.70 -0.4% Buy 1,777 0.62 20.0 22.6 13.6 12.0 1.9 2.3 2.92 -7.2 1.69 60.4 35.5 TOPGLOV 9.76 12.20 25.0% Buy 12,259 0.69 35.3 42.7 27.6 22.8 1.5 1.8 10.24 -4.7 4.56 114.0 22.2 KAREX 0.80 0.93 17.0% Sell 797 0.86 1.8 3.0 44.9 26.2 0.6 1.0 2.26 -64.8 0.78 1.9 -38.8 SCIENTX 8.03 10.01 24.7% Buy 3,926 0.87 67.5 79.4 11.9 10.1 2.6 3.2 9.85 -18.5 7.23 11.1 -7.3 SKPRES 1.68 2.20 31.0% Buy 2,100 0.92 10.4 14.8 16.2 11.4 3.1 4.4 2.35 -28.5 1.24 35.5 -26.3 ASTRO 2.22 3.10 39.6% Buy 11,575 0.86 14.0 13.7 15.9 16.2 5.9 6.1 2.94 -24.5 2.14 3.7 -16.2 MEDIA PRIMA 0.44 0.45 3.4% Sell 483 1.32 -3.8 -1.7 na na 0.0 0.0 1.24 -64.9 0.42 4.8 -42.8 STAR 1.24 1.20 -3.2% Sell 915 1.06 6.2 5.9 20.0 20.9 7.3 7.3 2.22 -44.1 1.24 0.0 -24.8 INDUSTRIAL MEDIA
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) FY18 PER (X) Div Yield (%) FY19 FY18 FY19 FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.44 0.69 58.6% Buy 764 1.67 4.0 4.3 10.9 10.1 2.3 2.3 0.69 -37.0 0.39 11.5 -10.3 LCTITAN 6.22 7.60 22.2% Buy 14,138 na 56.3 60.9 11.0 10.2 4.0 4.3 6.53 -4.7 4.14 50.2 32.3 MHB 0.76 0.81 7.3% Sell 1,208 1.49 0.5 1.7 157.2 45.3 0.0 0.0 1.16 -34.9 0.63 20.8 -8.5 MISC 7.20 7.00 -2.8% Sell 32,139 1.15 50.1 53.8 14.4 13.4 4.2 4.2 7.90 -8.9 6.73 7.0 -3.0 PANTECH 0.57 0.69 22.1% Buy 420 1.27 6.1 6.8 9.3 8.3 4.9 5.4 0.74 -23.6 0.52 8.7 -12.4 PCHEM 8.21 8.84 7.7% Hold 65,680 0.84 52.5 53.8 15.6 15.3 3.2 3.2 8.38 -2.0 6.80 20.7 6.6 SAPNRG 0.54 1.25 131.5% Buy 3,236 2.06 -6.5 -5.0 na na 0.0 0.0 2.10 -74.3 0.40 36.7 -23.9 SERBADK 3.41 4.15 21.7% Buy 5,008 na 27.7 31.5 12.3 10.8 2.6 2.9 3.68 -7.3 1.63 109.2 5.2 UMWOG 0.31 0.39 25.8% Buy 2,547 1.87 0.4 1.2 81.2 26.8 0.0 0.0 0.68 -54.3 0.27 14.8 1.6 UZMA 1.51 1.57 4.0% Hold 483 0.78 12.9 13.9 11.7 10.9 0.0 0.0 1.98 -23.7 1.26 19.8 18.0 FGV 1.76 1.98 12.5% Sell 6,421 1.65 3.5 4.4 51.0 40.4 2.8 2.8 2.18 -19.3 1.51 16.6 4.1 IJMPLNT 2.27 2.25 -0.9% Sell 1,999 0.18 6.7 10.8 33.6 21.0 3.5 4.0 3.23 -29.7 2.20 3.2 -17.2 IOICORP 4.75 5.08 6.9% Buy 29,005 0.88 20.9 21.6 22.7 22.0 6.2 3.7 4.79 -0.8 4.21 12.9 7.2 KFIMA 1.48 1.89 27.7% Buy 417 0.68 14.1 14.7 10.5 10.1 6.1 6.1 1.96 -24.5 1.45 2.1 -5.7 KLK 25.50 27.07 6.2% Hold 27,157 0.64 120.7 125.7 21.1 20.3 2.4 2.4 25.78 -1.1 23.66 7.8 2.0 SIMEPLT 5.60 6.25 11.6% Buy 38,085 na 21.0 22.1 26.6 25.4 2.5 2.7 6.00 -6.7 4.58 22.3 -6.7 TSH 1.48 1.97 33.1% Buy 2,043 0.49 9.3 9.6 15.9 15.4 1.6 1.7 1.90 -22.1 1.48 0.0 -10.3 UMCCA 6.30 6.01 -4.6% Sell 1,321 0.39 17.3 28.3 36.4 22.2 2.5 2.9 7.08 -11.0 5.97 5.5 -3.2 GLOMAC 0.47 0.40 -14.0% Sell 369 0.76 1.5 2.5 30.8 18.8 4.3 4.3 0.66 -29.9 0.46 1.1 -16.1 HUAYANG 0.51 0.58 14.9% Sell 178 0.86 0.7 3.4 76.1 14.8 1.0 1.0 1.15 -56.1 0.51 0.0 -17.2 IBRACO 0.64 0.80 25.0% Buy 318 na 7.2 10.7 8.8 6.0 4.7 6.3 0.98 -34.4 0.50 28.0 -21.5 IOIPG 1.65 2.00 21.2% Sell 9,085 0.85 16.3 15.7 10.1 10.5 3.6 3.6 2.22 -25.7 1.62 1.9 -10.8 MAHSING 1.05 1.59 51.4% Buy 2,549 0.93 11.8 11.3 8.9 9.3 6.2 6.2 1.64 -36.0 1.00 5.5 -27.6 SIMEPROP 1.42 1.51 6.3% Hold 9,657 na 7.5 7.5 18.9 19.0 2.8 2.1 1.78 -20.2 1.04 36.5 -20.2 SNTORIA 0.65 0.76 16.9% Buy 365 0.13 8.3 8.6 7.9 7.6 1.5 1.5 0.91 -28.5 0.56 16.1 -6.5 SPB 4.52 5.10 12.8% Hold 1,553 0.60 18.7 24.0 24.1 18.8 2.7 2.7 5.50 -17.8 4.39 3.0 -7.8 SPSETIA 3.17 3.73 17.7% Buy 11,904 0.94 19.8 19.4 16.0 16.3 3.8 3.8 4.38 -27.7 3.07 3.3 -20.8 SUNWAY 1.50 1.75 16.7% Hold 7,323 0.90 11.8 12.4 12.7 12.1 4.0 4.0 1.96 -23.4 1.36 10.5 -8.0 SUNREIT 1.62 1.87 15.4% Hold 4,771 0.87 10.0 10.7 16.2 15.2 6.2 6.6 1.90 -14.7 1.52 6.6 -14.7 CMMT 1.02 1.48 45.1% Buy 2,081 0.77 7.8 8.3 13.0 12.3 7.9 8.4 1.83 -44.3 0.98 4.1 -44.3 PLANTATIONS PROPERTY REIT POWER & UTILITIES MALAKOF 0.88 0.82 -6.3% Sell 4,332 0.99 6.6 7.2 13.2 12.1 8.0 8.0 1.30 -32.7 0.86 2.3 -10.7 PETDAG 24.80 24.08 -2.9% Sell 24,638 0.48 114.7 116.3 21.6 21.3 3.5 3.5 25.97 -4.5 20.81 19.2 3.1 PETGAS 18.00 19.46 8.1% Buy 35,617 0.86 99.3 100.0 18.1 18.0 3.8 3.9 20.08 -10.4 15.82 13.8 3.0 TENAGA 15.78 18.22 15.5% Buy 89,409 0.59 131.3 127.5 12.0 12.4 4.1 4.0 16.12 -2.1 13.60 16.0 3.4 YTLPOWR 1.15 1.16 0.9% Sell 9,119 0.92 8.6 8.9 13.3 12.9 4.3 4.3 1.50 -23.3 1.05 9.5 -10.9 TELECOMMUNICATIONS AXIATA 5.50 6.50 18.2% Buy 49,769 1.56 15.9 19.4 34.5 28.3 1.5 2.9 5.82 -5.5 4.54 21.1 0.2 DIGI 4.71 5.15 9.3% Hold 36,620 0.98 19.7 20.4 23.9 23.1 4.2 4.3 5.19 -9.2 4.36 8.0 -7.6 MAXIS 5.89 6.05 2.7% Sell 46,004 1.10 25.2 25.0 23.4 23.5 3.4 3.4 6.60 -10.8 5.48 7.5 -2.0 TM 5.50 7.20 30.9% Buy 20,669 0.69 22.8 24.9 24.1 22.1 3.7 4.1 6.69 -17.8 5.45 0.9 -12.7 ELSOFT 2.50 3.30 32.0% Buy 688 0.89 13.1 15.0 19.1 16.7 3.7 4.2 2.95 -15.3 1.73 44.5 -7.4 IRIS 0.18 0.22 22.2% Buy 445 2.49 0.0 0.3 654.3 56.9 0.0 0.0 0.25 -26.5 0.14 33.3 -2.7 INARI 2.92 3.65 25.0% Buy 6,057 0.75 13.7 15.3 21.3 19.1 3.4 3.8 3.82 -23.6 1.89 54.8 -14.1 TECHNOLOGY Semiconductor & Electronics Note: INARI proposed bonus issue shares on the basis of 1 for 2. For more detail please refer to 30.01.18 report. MPI 8.88 10.70 20.5% Buy 1,766 0.89 73.9 86.9 12.0 10.2 3.6 3.6 14.52 -38.8 8.42 5.5 -29.6 UNISEM 2.54 2.70 6.3% Sell 1,864 1.14 19.0 20.3 13.4 12.5 4.7 4.7 4.25 -40.2 2.49 2.0 -30.4 TRANSPORTATION Airlines AIRASIA 3.93 4.93 25.4% Hold 13,134 1.13 49.3 49.3 8.0 8.0 2.0 2.0 4.75 -17.3 2.81 39.9 17.3 AIRPORT 8.90 8.61 -3.3% Sell 14,767 1.13 18.0 18.8 49.5 47.4 1.5 1.1 9.45 -5.8 6.88 29.4 1.3 Freight & Tankers PTRANS 0.27 0.46 73.6% Buy 336 na 2.3 3.8 11.3 7.0 2.6 4.2 0.38 -30.6 0.21 29.6 -5.4 TNLOGIS 1.05 1.45 38.1% Buy 480 1.02 10.3 10.5 10.2 10.0 4.8 4.8 1.83 -42.7 1.05 0.0 -21.6 WPRTS 3.58 4.06 13.4% Buy 12,208 0.46 15.6 20.0 22.9 17.9 1.1 1.4 4.19 -14.6 3.12 14.7 -3.2 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) % upside Recom Market Cap. (S$m) Beta EPS (cent) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 28.12 30.50 8.5% Buy 72,096 1.11 212.3 246.0 13.2 11.4 2.3 2.5 29.7 -5.4 18.47 52.2 OCBC 13.26 14.30 7.8% Buy 55,486 1.20 109.5 123.2 12.1 10.8 6.7 7.7 13.6 -2.6 9.45 40.3 13.2 7.0 UOB 28.16 27.80 -1.3% Hold 46,792 1.17 216.6 244.0 13.0 13.0 2.8 2.8 29.0 -2.9 21.38 31.7 6.5 PLANTATIONS WILMAR 3.21 3.31 3.1% Hold 20,539 0.82 27.4 29.3 11.7 11.0 3.1 3.4 3.9 -17.1 2.97 8.1 3.9 IFAR 0.33 0.36 9.1% Hold 473 1.05 3.8 4.1 8.7 8.0 1.6 1.7 0.5 -38.3 0.32 3.1 -15.4 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 Friday , March 23, 2018 FBMKLCI: 1,876.87 Sector: Consumer THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Scientex Berhad TP: RM10.01 (+24.7%) Last Traded: RM8.03 Promising Growth Outlook Damia Othman Tel: +603-2167-9602 Buy damia@ta.com.my Review Scientex Berhad’s (Scientex) 1HFY18 earnings came in at 42% of our and consensus’ full-year estimates. We deem this as within expectation as we expect Scientex’s FY18 earnings to be back-end loaded. Manufacturing. 1HFY18 operating profit improved by 22.7% YoY to RM66.3mn on the back of i) higher revenue contribution which increased by 16.9% YoY to RM925.5mn; ii) increase in production volume by 21.7% YoY to 113.4k tonnes; iii) positive contribution from the export sales, accounting for 78% (+4.0-pts) of the manufacturing total revenue; and iv) gained in operating profit margin by 0.3%-pts to 7.2% due to favourable product mix. While QoQ, operating profit declined by 8.9% to RM31.6mn due to lower revenue of RM456.4mn (-2.7%) as a result of strengthening of Ringgit against US Dollar. Property. Operating profit for 1HFY18 increased by 14.9% YoY to RM111.9mn attributable to strong progress billing and good take up rate for developments in Johor, Melaka and Perak. While QoQ, operating profit declined by 8.9% to RM53.3mn due to sales declined by 5.9% QoQ to RM178.3mn. No dividend was declared during the quarter under review. Impact No change to our earnings forecasts. Outlook Scientex is poised to become top regional player for plastic packaging manufacturing with a total expected capacity of 455,000 tonnes/year for FY18. Last month, the group announced its plan to acquire Klang Hock Plastics Industries Sdn. Bhd. (KHPI) for a total consideration of RM190.0mn which also comes with a profit guarantee of RM18.0mn to be recognised in FY19. We are positive on this acquisition as this will further support the group’s long-term growth strategy. The new plant in Arizona, USA has commenced operations of stretch films in Jan-2018 with expected total capacity of 30,000 tonnes/year. This allows Scientex to be closer to its Central American customers therefore providing better sales and services with shorter delivery lead time. Furthermore, Scientex is expected to benefit from costs savings due to growing supply of shale gas-based resin as compared to current usage of fossil fuel-based resin. Note that with a total capacity of 356,000 tonnes/year as of FY17, Scientex has reached an utilisation rate of 55%. As of 1HFY18, utilisation rate reaches 62% after active efforts by acquiring new clients through penetrative pricing. After the completion of the KHPI plant in 2H18, management plans to ramp-up capacity to 70% level by FY20 through www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) Par value (RM) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) Scientex Holdings Sdn Bhd Scientex Leasing Sdn Bhd Lim Teck Meng Sdn Bhd TM Lim Sdn Bhd SCI MK 4731 Main Market 488.9 3,926.1 0.5 9.85/7.23 240.5 40.5786964 0.87 20.86 9.65 7.82 5.05 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 0.0 0.0 329.8 388.1 330.3 382.5 99.9 101.5 Buy (Maintained) Financial Indicators FY18 39.4 17.6 10.4 3.8 2.1 FY19 42.5 18.2 10.4 4.3 1.9 vs. TA vs. Consensus % of FY18 42 42 Within Within Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth SCIENTEX (7.4) (8.8) (6.5) 10.2 FBM KLCI 0.8 6.6 6.0 7.4 Net debt/ equity (%) ROE (%) ROA (%) NTA/Share (RM) Price/ NTA (x) Scorecard (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 3
13. 23-Mar-18 focusing on improving margins in product offerings within the custom films range coupled with sales volume growth . Moreover, management guided that the group is open to further acquisitions to expand capacity not just within Malaysia but also regionally in order to meet growing global demands. As of to date, Scientex has a total Gross Development Value (GDV) of RM10.0bn of future development to sustain earnings from the property segment for the next eight to ten years. Note that the property segment has been delivering positive take up rate of between 90% - 100% upon launching. Currently Scientex has presence in Klang Valley, North as well as South Peninsular of Malaysia. Note that Scientex has launched a total of 15 projects with projected GDV of RM566.7mn whereby 10 of these will be launched within 2Q18 period with projected GDV of RM500.0mn. Management guided that the group will continue to look for opportunities to acquire land and hope to expand in new areas while still focusing on the affordable housing segments. Risks to the group includes i) strengthening of Ringgit may limit topline growth and; ii) rising level of crude oil price which makes fossil-fuel based resin may limit gross margin within the manufacturing division; as well as ii) lower-than-expected take-up rate from new launches in the property division. Valuation Maintain our Buy call on Scientex with unchanged target price of RM10.01/share based on SOP valuation. We like Scientex due to its i) market leading regional position as flexible plastic packaging manufacturer; ii) high take up rates of newly launched property development projects; and iii) healthy balance sheet position. Sum-of-part Valuation Sum-of-Parts Manufacturing Property FY18 164.9 164.9 PAT (RMmn) FY19 CY18 194.0 177.0 194.0 177.0 Target PER (x) 20 8 Segment Value (RMmn) 3,611.7 1,416.4 Equity value (RMmn) Share cap (mn) Target Price (RM) Comment 20% premium to peer's PE average In-line with small-cap property players 4,896.2 488.9 10.01 Earnings Summary FYE 31 July (RMmn) Revenue Gross Profit EBITDA EBIT Reported PBT Adj. PBT Reported Net Profit Adj. Net profit Basic/Diluted EPS Adj. EPS PER Net Dividend Dividend Yield (sen) (sen) (x) (sen) (%) 2016 2,201.0 440.2 367.1 312.6 306.3 312.0 240.9 240.9 106.0 49.3 7.6 16.1 2.0 2017 2,403.2 493.2 388.3 325.1 318.0 322.0 255.9 255.9 54.8 52.3 14.6 16.0 2.0 2018E 2,729.2 614.5 521.8 450.9 403.4 403.4 329.8 329.8 67.5 67.5 11.9 21.0 2.6 2019F 3,388.0 705.6 619.2 535.1 474.7 474.7 388.1 388.1 79.4 79.4 10.1 26.0 3.2 2020F 3,729.5 807.6 729.2 629.9 569.2 569.2 465.3 465.3 95.2 95.2 8.4 34.0 4.2 Page 2 of 3
14. 23-Mar-18 Quarterly Results Analysis FYE July (RM'mn) Revenue ~ Manufacturing ~ Property Interest Expense Interest Income Depreciation EBITDA Operating Profit ~ Manufacturing ~ Property Reported PBT Taxation MI Reported Profit Adj. Net Profit EPS (sen) Adj EPS (sen) DPS (sen) EBIT Margin (%) ~ Manufacturing ~ Property PBT Margin (%) Net Margin (%) Tax rate (%) 2QFY17 586.2 411.9 174.3 (3.6) 2.9 15.4 98.0 82.6 30.2 52.3 81.8 (15.5) (1.1) 65.2 64.1 14.1 13.8 0.0 1QFY18 658.7 469.1 189.6 (2.3) 1.7 17.3 110.5 93.2 34.7 58.6 92.6 (19.2) (1.0) 73.4 72.4 15.0 14.8 0.0 2QFY18 634.8 456.4 178.3 (2.3) 2.7 17.1 102.0 84.9 31.6 53.3 85.4 (16.5) (0.9) 68.0 67.1 14.1 13.9 0.0 14.1 7.3 30.0 14.0 10.9 19.0 14.2 7.4 30.9 14.1 11.0 20.7 13.4 6.9 29.9 13.5 10.6 19.3 QoQ (%) (3.6) (2.7) (5.9) (3.2) 62.9 (1.1) (7.7) (8.9) (8.9) (8.9) (7.8) (14.1) (6.6) (7.4) (7.4) (6.1) (6.2) nm %-pts (0.8) (0.5) (1.0) (0.6) (0.4) (1.4) YoY (%) 8.3 10.8 2.3 (37.9) (6.9) 11.0 4.1 2.9 4.5 1.9 4.3 6.2 (17.7) 4.3 4.7 (0.3) 0.1 nm %-pts (0.7) (0.4) (0.1) (0.5) (0.4) 0.3 1HFY17 1,120.9 791.6 329.4 (7.1) 4.0 30.6 182.0 151.4 54.0 97.4 148.2 (28.9) (2.1) 117.2 115.2 25.4 25.0 0.0 1HFY18 1,293.4 925.5 367.9 (4.6) 4.4 34.4 212.5 178.2 66.3 111.9 177.9 (35.6) (1.9) 141.4 139.5 29.0 28.6 0.0 13.5 6.8 29.6 13.2 10.3 19.5 13.8 7.2 30.4 13.8 10.8 20.0 YoY (%) 15.4 16.9 11.7 (35.3) 10.5 12.3 16.8 17.7 22.7 14.9 20.0 23.2 (6.7) 20.6 21.1 14.2 14.7 nm %-pts 0.3 0.3 0.8 0.5 0.5 0.5 (THIS PAGE IS INTENTIONALLY LEFT BLANK) 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 Friday, March 23, 2018, the analyst, Damia Othman, 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. RESULT UPDATE Friday , March 23, 2018 FBMKLCI: 1,876.87 Sector: Plantation THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM6.01 (-4.6%) United Malacca Berhad Last Traded: RM6.30 Near-Term Earnings Remains Subdued Angeline Chin Tel: +603-2167 9611 SELL angelinechin@ta.com.my Review United Malacca posted another disappointing set of results, which came in below expectations. After stripping out all the exceptional items, 3QFY18 core net profit dropped by 57.8% YoY to RM8.8mn. The lower-thanexpected results were mainly due to higher production cost, which resulted in lower margin. Cumulatively, 9MFY18 core net profit decreased by 39.4% YoY to RM30.1mn, accounting for 63% and 49% of our and consensus' full-year estimates. The decrease was mainly due to lower palm oil price, lower FFB yield and high unit cost of production in the newly-matured area. FFB production increased by 13.5% to 289.5k tonnes. However, FFB yield dropped to 11.6 tonne/ha compared to 12.5 tonne/ha in the preceding year. The lower yield was mainly due to the newly-matured 4,640 ha of oil palms in Malaysia (1,679 ha) and Indonesia (2,961 ha). Meanwhile, the average CPO selling price dropped 3.5% YoY to RM2,672/tonne while the PK selling price declined by 15.2% YoY to RM2,378/tonnes. www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) UMR MK 2593 Main Market 209.7 1,321 7.08/5.972 49 72 0.39 OCBC- 20.24 Aberdeen-11.54 HSBC - 8.52 EPF - 8.43 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 (23.9) (27.2) 36.3 53.1 61.9 76.6 58.6 69.4 Sell (Maintained) Financial Indicators No dividend was declared for the quarter under review. Impact We trim our FY18/FY19/FY20 earnings forecast by 23.9%/27.2%/30.4%, respectively, after factoring in higher production costs and lower margin. Outlook Management expects higher FFB production for FY18 due to improved FFB yield from the young matured palms and additional new matured area. We believe FFB yield will improve as more trees mature to their prime ages. However, according to management, the higher FFB production will not translate into proportionately higher profit due to higher unit cost of production for the newly-matured palms. With that, management warns that its FY18 earnings will be substantially lower compared to last year. ROE (%) Net Gearing (x) NTA/Share (RM) Price/NTA (x) FY18 2.1 0.1 8.0 0.8 FY19 3.0 0.1 8.1 0.8 % of FY 63 49 Below Below UMR 0.2 (2.9) (3.8) 2.9 FBM KLCI 0.8 6.6 6.0 7.4 Scorecard vs TA vs Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBMKLCI Valuation With the earnings downgrade and rolling forward our valuation base year to CY19, we downgrade United Malacca’s target price to RM6.01 (previously RM6.73), based on 22x CY19 EPS. Maintain SELL. Key risks to our call are, 1) a prolong downcycle in CPO price, 2) escalating production cost, 3) global economic slowdown, 4) lower FFB production, 5) large supply of soybean oil in the market. Source: Bloomberg Page 1 of 3
16. 23-Mar-18 Figure 1 : Plantation Statistics 3QFY17 83,208 4.11 3,069 3,205 FFB (tonne) FFB yield (tonne/ha) Average CPO price/tonne (RM) Average PK price/tonne (RM) 2QFY18 98,150 3.92 2,707 2,522 3QFY18 107,879 4.31 2,561 2,522 % QoQ 9.9 9.9 (5.4) 0.0 % YoY 29.6 4.9 (16.6) (21.3) 9MFY17 255,056 12.54 2,769 2,804 9MFY18 289,513 11.56 2,672 2,378 % YoY 13.5 (7.8) (3.5) (15.2) Source: Company, TA Research 2QFY18 Results Analysis (RMmn) FYE 30 April (RMmn) Turnover EBIT Net Interest Inc./ (exp.) EI Adj. PBT Pretax Taxation MI Reported net profit Core net profit 3QFY17 75.8 27.4 (0.7) 12.8 26.7 39.4 (5.6) (0.2) 33.7 20.9 2QFY18 81.0 20.9 (1.1) (1.8) 19.8 18.0 (5.5) 0.4 12.9 14.7 3QFY18 64.2 12.4 (0.3) 11.3 12.1 23.4 (4.5) 1.3 20.1 8.8 Core EPS (sen) GDPS (sen) 10.1 0.0 7.1 6.0 EBIT Margin (%) Adj. Pretax Margin (%) Tax Rate (%) 36.1 35.2 21.1 25.9 24.5 28.0 QOQ% (20.7) (40.9) (71.2) (720.0) (39.1) 29.8 (18.7) 211.4 56.4 (40.0) YoY % (15.3) (54.7) 53.3 (11.4) (54.8) (40.7) 19.7 nm (40.2) (57.8) 9MFY17 204.4 67.0 (2.0) 5.8 64.9 70.8 (14.9) (0.3) 55.6 49.7 9MFY18 215.5 43.4 (2.5) 9.2 40.9 50.1 (13.0) 2.1 39.3 30.1 4.3 0.0 24.0 8.0 14.4 6.0 19.3 18.8 37.4 32.8 31.8 23.0 20.2 19.0 31.6 YoY% 5.4 (35.2) 22.1 57.5 (37.0) (29.2) 13.3 nm (29.2) (39.4) Earnings Summary FYE April 30 Revenue EBITDA EBITDA Margin Pretax profit Reported net profit Core net profit Reported EPS Core EPS Core EPS Growth PER Gross Div Div Yield ROE (%) (sen) (sen) (%) (x) (sen) (%) (%) FY16 205.7 74.7 36.3 70.2 59.6 46.6 28.5 22.3 (2.1) 28.3 16.0 2.5 3.5 FY17 274.7 103.2 37.6 98.9 84.6 78.6 40.4 37.6 68.7 16.7 23.0 3.7 4.9 FY18E 279.1 80.0 28.7 51.3 36.3 36.3 17.3 17.3 (54.1) 36.5 16.0 2.5 2.1 FY19F 310.6 108.1 34.8 75.5 53.1 53.1 25.1 25.1 45.4 25.1 18.0 2.9 3.0 FY20F 349.6 122.6 35.1 86.9 60.5 60.5 28.4 28.4 13.1 22.2 19.0 3.0 3.4 Page 2 of 3
17. 23-Mar-18 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Friday, March 23, 2018, the analyst, Angeline Chin, 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
18. Friday , 23 March, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s P ic ks 2. D ai l y Mon e y F low of T e ch n i c a l St o ck Pi ck s 3. D ai l y Mon e y F low of FB MK L CI 4. D ai l y S t o c k S c r e e n Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
19. Technical View Friday , March 23, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,876.87 (+11.07, +0.59%) Chartist: Stephen Soo Close Name 22/Mar FBMKLCI 1876.87 Tel: +603-2167 9607 Change High Low 11.07 1,876.87 1,865.83 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 1,835.66 1,853.89 1,872.12 58.75 1,852.76 1,849.39 1,844.35 28.71 25.34 14.37 3.37 4.26 4.56 MACD DMI MACD Recent Signal Signal Change (0.306) BUY SELL BUY - AFFIN 2.46 0.01 2.46 2.42 2.20 2.39 2.57 65.38 2.47 2.37 2.39 31.25 16.64 28.85 14.61 0.04 0.02 0.018 BUY BUY - - ABMB 4.33 0.00 4.37 4.30 3.99 4.19 4.39 59.92 4.26 4.17 4.19 23.91 13.85 22.75 10.06 0.05 0.03 0.021 BUY BUY - - AMBANK 4.18 0.02 4.18 4.14 3.79 4.17 4.56 44.84 4.10 4.28 4.45 22.06 25.51 23.15 -3.45 -0.09 -0.11 0.020 SELL BUY - - AXIATA 5.50 0.01 5.50 5.46 5.22 5.44 5.65 52.76 5.40 5.48 5.52 19.53 23.66 27.65 -4.13 -0.03 -0.04 0.008 SELL BUY - BUY CIMB 7.29 -0.01 7.33 7.27 7.12 7.22 7.32 61.22 7.22 7.15 7.05 24.63 17.97 22.11 6.66 0.06 0.07 (0.008) BUY SELL - - DIGI 4.71 -0.04 4.80 4.65 4.56 4.75 4.94 49.80 4.68 4.79 4.82 20.26 28.17 28.36 -7.90 -0.05 -0.05 (0.007) SELL SELL - - GAMUDA 5.10 0.02 5.11 5.07 4.92 5.02 5.12 56.06 5.02 5.00 5.04 23.88 12.54 17.19 11.34 0.01 0.00 0.007 BUY BUY - - GENTING 9.02 -0.02 9.08 8.92 8.72 8.92 9.13 52.56 8.95 8.92 9.13 11.30 17.39 23.71 -6.08 -0.02 -0.05 0.028 SELL BUY - - GENM 5.24 0.07 5.25 5.19 5.00 5.18 5.36 46.47 5.22 5.21 5.31 22.11 19.55 13.17 2.57 -0.02 -0.03 0.012 BUY BUY - - IHH 6.02 -0.07 6.11 6.02 5.95 6.06 6.17 52.88 6.08 6.05 6.01 20.82 10.85 19.67 9.97 0.03 0.03 0.003 BUY BUY - - IOICORP 4.75 0.08 4.79 4.66 4.58 4.67 4.77 52.98 4.69 4.65 4.61 17.93 20.17 15.25 -2.24 0.02 0.03 (0.011) SELL SELL - - MALAKOFF 0.88 -0.01 0.89 0.87 0.85 0.89 0.94 44.20 0.87 0.90 0.93 15.35 19.03 23.97 -3.68 -0.08 -0.07 (0.010) SELL SELL - - MAXIS 5.89 -0.01 5.91 5.74 5.66 5.88 6.09 50.28 5.84 5.93 5.97 16.15 26.10 24.73 -9.95 -0.05 -0.05 SELL BUY - BUY MAYBANK 0.003 10.54 0.26 10.54 10.28 10.23 10.40 10.56 47.88 10.38 10.30 10.15 18.75 22.52 27.33 -3.77 0.06 0.09 (0.037) SELL SELL - - MBSB 1.14 0.00 1.16 1.14 1.12 1.19 1.25 41.09 1.17 1.19 1.19 16.53 22.59 13.29 -6.06 -0.01 0.00 (0.006) SELL SELL - - RHBBANK 5.40 -0.01 5.42 5.37 5.24 5.36 5.48 55.59 5.33 5.31 5.30 19.39 18.09 12.07 1.30 0.02 0.02 (0.002) BUY SELL BUY - SIME 2.62 0.00 2.65 2.60 2.54 2.67 2.80 44.45 2.63 2.68 2.74 16.61 25.12 23.38 -8.51 -0.02 -0.02 (0.003) SELL SELL - - TENAGA 15.78 0.00 15.82 15.74 15.55 15.66 15.78 60.23 15.66 15.69 15.73 20.78 12.66 15.37 8.11 0.01 -0.01 BUY BUY - - TM 5.50 0.00 5.52 5.48 5.37 5.73 6.10 34.11 5.60 5.83 5.92 19.40 27.14 20.10 -7.73 -0.13 -0.11 (0.016) 0.015 SELL SELL - - WPRTS 3.58 0.00 3.58 3.53 3.46 3.60 3.73 50.18 3.56 3.60 3.56 11.57 18.60 16.36 -7.03 -0.01 0.00 (0.004) SELL SELL - - AIRASIA 3.93 -0.13 4.06 3.87 3.84 4.21 4.59 45.79 4.08 4.21 4.12 19.27 26.59 21.28 -7.32 -0.02 0.00 (0.022) SELL SELL - - AIRASIA X 0.40 0.01 0.40 0.39 0.38 0.41 0.44 45.71 0.40 0.41 0.40 19.57 19.44 18.93 0.13 0.00 0.00 (0.002) BUY SELL - - ARMADA 0.84 -0.01 0.86 0.84 0.81 0.85 0.88 53.20 0.84 0.84 0.84 18.70 19.25 17.83 -12.67 0.00 0.00 (0.001) SELL SELL - - BINAPURI 0.33 -0.01 0.33 0.32 0.32 0.33 0.34 49.44 0.33 0.33 0.33 8.96 21.63 24.47 -9.26 0.00 0.00 SELL BUY - - CMSB 4.09 -0.01 4.13 4.09 4.04 4.21 4.38 43.63 4.15 4.21 4.18 15.02 24.28 15.18 11.56 -0.02 0.00 (0.016) BUY SELL - - DIALOG 2.88 0.04 2.88 2.82 2.56 2.70 2.84 64.62 2.72 2.69 2.67 26.57 15.01 16.73 11.56 0.04 0.02 BUY BUY - - ECO WORLD 1.04 0.03 1.05 1.01 0.98 1.19 1.41 17.14 1.09 1.25 1.32 11.41 41.38 59.92 -29.97 -0.08 -0.07 (0.010) SELL SELL - - EKOVEST 0.96 -0.01 0.98 0.96 0.94 0.98 1.03 46.81 0.97 0.99 1.02 22.91 20.59 12.15 2.32 -0.01 -0.01 (0.000) BUY SELL - - GADANG 0.93 0.01 0.93 0.92 0.89 1.00 1.11 20.29 0.95 1.02 1.07 9.33 35.80 44.51 -26.47 -0.04 -0.03 (0.007) SELL SELL - - HSL 1.53 -0.01 1.53 1.52 1.56 1.61 1.66 39.32 1.60 1.60 1.57 18.69 31.79 16.42 -13.10 0.00 0.01 (0.011) SELL SELL - - ISKANDAR 1.37 0.03 1.38 1.35 1.27 1.36 1.44 44.60 1.38 1.35 1.37 22.14 20.97 28.63 1.17 0.01 0.01 0.004 BUY BUY - - KIMLUN 2.15 0.06 2.15 2.09 2.07 2.12 2.17 21.44 2.10 2.14 2.19 20.74 50.13 28.97 -29.39 -0.03 -0.03 0.002 SELL BUY - - KKBE 0.96 0.01 0.96 0.95 0.93 0.95 0.97 50.53 0.95 0.94 0.96 31.30 18.01 23.88 13.29 0.00 0.00 0.001 BUY BUY - - MUDAJAYA 0.74 0.00 0.75 0.73 0.70 0.81 0.92 27.08 0.76 0.83 0.86 20.09 40.65 27.14 -20.56 -0.04 -0.03 (0.006) SELL SELL - - MRCB 0.99 0.00 1.00 0.99 0.96 1.05 1.14 33.63 1.01 1.07 1.13 13.57 23.99 24.37 -10.42 -0.03 -0.03 (0.002) SELL SELL - - NAIM 1.00 0.01 1.00 1.00 0.96 1.01 1.06 44.82 0.99 1.01 1.05 34.26 15.52 17.66 18.74 -0.01 -0.02 0.003 BUY BUY - - SAPURA ENERGY 0.54 0.03 0.57 0.53 0.37 0.56 0.75 39.67 0.48 0.60 0.69 19.53 28.57 38.95 -9.04 -0.06 -0.07 0.004 SELL BUY - BUY SUNCON 2.07 -0.02 2.08 2.06 2.00 2.23 2.47 30.38 2.14 2.31 2.40 13.88 26.47 33.78 -12.59 -0.09 -0.08 (0.006) SELL SELL - - UEMS 1.00 0.02 1.00 0.99 0.92 1.04 1.16 34.32 0.99 1.06 1.10 12.94 24.90 30.85 -11.96 -0.03 -0.03 (0.001) SELL SELL - - UMWOG 0.31 0.01 0.32 0.31 0.29 0.31 0.33 43.54 0.31 0.31 0.34 21.23 17.79 15.26 3.44 -0.01 -0.01 BUY BUY - - WASEONG 1.56 -0.03 1.60 1.55 1.48 1.60 1.72 55.29 1.57 1.54 1.48 21.03 21.05 16.95 -0.02 0.03 0.04 (0.006) SELL SELL - - WCT 1.32 -0.01 1.33 1.30 1.24 1.46 1.68 35.65 1.36 1.49 1.57 15.24 31.71 25.05 -16.46 -0.07 -0.06 (0.011) SELL SELL - - 0.000 0.018 0.001 The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
20. 23-Mar-18 Technical Comments : Take Profit DIGI & MAXIS Any near-term spikes on DiGi shares above the 50%FR (RM4.75) to the 61.8%FR (RM4.85) should attract profit-taking interest, while sell-offs should meet support at the 23.6%FR (RM4.52) and RM4.40, matching the Nov 2017 trough. Likewise, brief rallies on Maxis towards the 50%FR (RM5.98) or 38.2%FR (RM6.12) should encounter profit-taking resistance, while corrections should be cushioned at the 76.4%FR (RM5.65) and RM5.50, matching the July 2017 bottom. DIGI RM4.71 (-0.04) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 4.92 4.74 4.56 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal SELL Signal Change Recent Signal SELL Signal Change MAXIS RM5.89 (-0.01) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 6.06 5.87 5.67 10-day 30-day 50-day DMI Recent Signal Signal Change 4.68 4.78 4.81 SELL Recent Signal Signal Change RM RM RM DAILY MACD 5.84 5.92 5.97 BUY BUY Page 2 of 4
21. 23-Mar-18 Daily Money Flow of Technical Stock Picks Malaysia Chartist : Stephen Soo No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Tel: +603-2167 9607 Total Money Flow (RM'mn) stsoo@ta.com.my www.taonline.com.my CLOSING PRICE 15-Mar 16-Mar 19-Mar 20-Mar 21-Mar (A) Total 5D MF Prv. Chg FBMKLCI 2.5 (6.5) (8.1) (22.6) (20.7) (55.3) (14.5) 1.9 1,845 1,846 1,848 1,856 1,866 9.41 OUT AFFIN ABMB AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD EKOVEST GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS UMWOG WASEONG WCT (0.0) (0.3) 0.6 0.2 (5.0) (0.2) (0.0) 0.7 (0.8) 0.6 (1.3) 0.2 (0.1) (5.9) (0.2) (0.4) 0.8 6.6 0.3 0.0 (0.7) (0.8) 0.1 (0.0) (0.1) (0.2) (0.0) 0.2 0.0 0.0 (0.2) (0.0) 0.0 (0.0) 0.0 0.0 (3.7) 0.5 (0.0) 0.2 (0.2) (0.1) 0.1 (0.0) (0.1) 1.0 (5.8) (0.1) 1.0 2.1 (0.2) (1.1) (0.4) 0.2 (0.2) (1.2) (0.1) 0.1 (0.2) (10.8) 0.3 (0.1) (0.7) (0.1) 0.4 (0.0) (0.1) 1.8 (0.0) (0.0) 0.0 0.0 (0.5) (0.0) (0.0) 0.0 (0.3) 0.0 (1.0) (0.1) (0.1) (0.0) 0.2 (0.0) 0.0 0.0 0.1 1.1 (2.3) (0.2) 0.5 (0.2) (0.9) 0.3 (0.5) (0.1) 0.0 (1.6) 0.1 (0.6) (0.3) (4.0) (0.0) 0.0 0.6 (0.4) (0.0) (0.0) 0.0 (1.0) 0.0 (0.1) 0.1 0.0 (0.1) 0.0 0.0 (0.0) (0.4) (0.0) (0.2) 0.1 (0.0) (0.1) (0.4) 0.2 0.0 (0.1) (0.7) 1.3 (2.2) 0.4 2.6 (0.3) (0.3) (3.4) 0.0 0.2 (0.1) (7.8) (0.0) (0.6) (2.3) 4.0 0.8 0.1 0.9 (0.4) 0.2 (0.0) (0.0) (2.7) (0.1) (0.4) 0.0 (0.0) (0.1) 0.0 (0.0) (0.0) 0.0 (0.0) (0.0) 0.4 0.2 (0.5) (0.0) (0.1) 0.0 (0.1) (0.1) 4.8 (13.7) 0.1 (0.1) (2.8) (0.5) 0.6 (0.7) 0.4 0.2 (6.8) (0.1) (0.2) (0.7) 2.6 (0.3) 0.2 (1.2) (0.7) (0.0) 0.0 0.0 (0.4) (0.1) 0.3 0.0 0.0 (0.4) 0.0 0.0 (0.0) (0.1) (0.0) (1.0) 0.1 (0.2) (0.1) 0.0 (0.1) 0.1 (0.5) (0.1) 8.3 (29.1) (0.1) 4.0 (0.5) (2.7) (3.0) (2.8) 0.9 (0.1) (23.2) (0.3) (1.8) (2.7) (1.7) 1.1 0.3 (1.1) (2.3) 0.7 (0.0) (0.1) (2.5) (0.2) (0.0) 0.1 0.0 (1.4) 0.0 0.0 (0.1) (0.7) 0.0 (5.9) 0.9 (0.1) (0.5) (0.5) (0.1) (0.0) (0.1) (0.7) 0.2 0.1 0.6 2.1 (0.1) 0.7 (3.7) 0.5 0.3 (0.1) (6.2) (0.1) 0.0 (2.0) 8.0 0.8 0.0 0.3 0.0 0.2 (0.0) (0.0) (1.6) (0.1) (0.3) (0.0) (0.0) 0.0 0.0 (0.0) (0.0) 0.4 (0.0) 0.2 0.3 0.2 (0.4) 0.4 (0.3) (0.0) 0.0 0.6 3.5 (11.5) (0.3) (2.7) (2.6) (0.2) 4.0 (0.8) 0.1 0.4 1.0 (0.1) 0.4 1.6 (1.4) (1.0) 0.2 (2.1) (0.4) (0.2) 0.0 0.0 2.2 (0.0) 0.7 0.0 0.0 (0.4) 0.0 0.0 0.0 (0.1) 0.0 (1.0) (0.3) (0.4) 0.3 0.1 0.0 2.45 4.14 4.07 5.20 7.22 4.65 5.00 8.90 5.35 6.06 4.68 0.87 5.64 10.36 1.19 5.25 2.62 15.66 5.59 3.64 4.10 0.42 0.84 0.34 4.18 2.73 1.10 0.98 0.94 1.60 1.43 2.10 0.94 0.74 1.01 0.99 0.49 2.14 1.00 1.63 0.32 1.34 2.47 4.32 4.12 5.32 7.22 4.54 5.04 8.95 5.24 6.09 4.58 0.87 5.77 10.32 1.17 5.37 2.70 15.68 5.60 3.52 4.15 0.41 0.82 0.33 4.10 2.78 1.12 1.00 0.94 1.61 1.43 2.10 0.95 0.74 1.00 1.01 0.48 2.11 1.00 1.62 0.31 1.37 2.45 4.32 4.15 5.35 7.26 4.60 5.05 8.99 5.25 6.05 4.61 0.87 5.76 10.32 1.17 5.31 2.66 15.70 5.58 3.54 4.12 0.41 0.84 0.33 4.17 2.80 1.10 0.98 0.92 1.61 1.42 2.10 0.97 0.75 1.01 1.01 0.49 2.12 1.00 1.60 0.31 1.36 2.45 4.33 4.14 5.49 7.20 4.62 5.05 8.99 5.20 6.20 4.66 0.88 5.88 10.34 1.14 5.32 2.60 15.76 5.46 3.56 4.11 0.41 0.84 0.33 4.14 2.82 1.08 0.96 0.92 1.55 1.39 2.10 0.95 0.74 1.00 1.00 0.49 2.13 1.00 1.59 0.31 1.30 2.45 4.33 4.16 5.49 7.30 4.75 5.08 9.04 5.17 6.09 4.67 0.88 5.90 10.28 1.14 5.41 2.62 15.78 5.50 3.58 4.06 0.40 0.85 0.33 4.10 2.84 1.01 0.97 0.92 1.54 1.34 2.09 0.95 0.74 0.99 1.00 0.52 2.09 0.99 1.59 0.31 1.33 0.00 0.00 0.02 0.00 0.10 0.13 0.03 0.05 (0.03) (0.11) 0.01 0.01 0.02 (0.06) 0.00 0.09 0.02 0.02 0.04 0.02 (0.05) (0.01) 0.01 0.00 (0.04) 0.02 (0.07) 0.02 0.01 (0.01) (0.05) (0.01) 0.00 0.01 (0.01) (0.01) 0.03 (0.04) (0.02) 0.00 (0.01) 0.03 OUT OUT OUT IN OUT IN OUT OUT IN IN OUT IN IN OUT OUT IN OUT IN OUT IN OUT OUT OUT IN IN IN OUT IN OUT IN OUT IN OUT OUT IN OUT OUT IN OUT OUT IN OUT Name (B) Cur. Chg 15-Mar 16-Mar 19-Mar 20-Mar 21-Mar Chg (A+B) DMF Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Page 3 of 4
22. 23-Mar-18 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo No Name 15-Mar Tel: +603-2167 9607 Total Money Flow (RM'mn) 16-Mar 19-Mar 20-Mar Total 21-Mar 5D MF stsoo@ta.com.my (A) (B) Prv. Chg Cur. Chg 15-Mar 16-Mar www.taonline.com.my CLOSING PRICE 19-Mar 20-Mar (A+B) 21-Mar Chg DMF FBMKLCI 2.5 (6.5) (8.1) (22.6) (20.7) (55.3) (14.5) 1.9 1,845 1,846 1,848 1,856 1,866 9.41 OUT 1 MAYBANK (5.9) (1.2) (1.6) (7.8) (6.8) (23.2) (6.2) 1.0 10.36 10.32 10.32 10.34 10.28 (0.06) OUT 2 PBBANK 3.0 3.6 4.1 (9.1) 3.6 5.1 (13.2) 12.7 23.00 23.02 23.12 23.52 23.68 0.16 OUT 3 TENAGA 6.6 (10.8) (4.0) 4.0 2.6 (1.7) 8.0 (1.4) 15.66 15.68 15.70 15.76 15.78 0.02 IN 4 CIMB (5.0) (5.8) (2.3) (2.2) (13.7) (29.1) 0.1 (11.5) 7.22 7.22 7.26 7.20 7.30 0.10 OUT 5 PCHEM 1.3 6.8 2.0 (1.8) 3.9 12.1 (3.8) 5.7 8.15 8.15 8.15 8.19 8.29 0.10 IN 6 IHH 0.6 (1.1) 0.3 (3.4) 0.6 (3.0) (3.7) 4.0 6.06 6.09 6.05 6.20 6.09 (0.11) IN 7 AXIATA 0.2 1.0 1.1 1.3 4.8 8.3 0.2 3.5 5.20 5.32 5.35 5.49 5.49 0.00 IN 8 MAXIS (0.1) (0.2) 0.0 (0.1) 0.2 (0.1) (0.1) 0.4 5.64 5.77 5.76 5.88 5.90 0.02 IN 9 HLBANK 0.4 (1.4) 0.3 0.7 0.4 0.4 0.4 (0.3) 18.78 18.72 18.80 18.70 18.70 0.00 IN 10 SIME PLT 0.1 2.8 (3.9) 1.0 (1.7) (1.8) 4.8 (2.7) 5.52 5.48 5.50 5.60 5.59 (0.01) IN 11 DIGI (0.2) (0.1) (0.2) 0.4 0.1 (0.1) 0.6 (0.3) 4.65 4.54 4.60 4.62 4.75 0.13 IN 12 NESTLE (0.9) (6.2) 1.0 0.6 (4.9) (10.5) (0.4) (5.5) 131.00 131.00 129.60 127.90 132.60 4.70 OUT 13 PETGAS 2.4 0.8 (0.2) (0.5) (0.2) 2.3 (0.3) 0.3 18.00 18.00 17.86 17.94 18.00 0.06 IN 14 GENTING 0.7 2.1 (0.2) (0.3) (2.8) (0.5) (0.1) (2.6) 8.90 8.95 8.99 8.99 9.04 0.05 OUT 15 MISC (0.0) 0.7 (0.0) (0.9) 0.1 (0.0) (0.8) 1.0 7.03 7.21 7.05 7.30 7.30 0.00 IN 16 IOI CORP (1.3) (0.4) (0.5) 0.0 (0.7) (2.8) 0.5 (0.8) 4.68 4.58 4.61 4.66 4.67 0.01 OUT 17 GENM (0.8) (0.2) (0.9) (0.3) (0.5) (2.7) 0.7 (0.2) 5.35 5.24 5.25 5.20 5.17 (0.03) IN 18 KLK (0.8) 1.2 1.6 0.1 (0.1) 2.1 (1.5) (0.2) 25.38 25.32 25.36 25.40 25.46 0.06 OUT 19 PETDAG 0.7 0.0 (0.1) 0.9 (0.6) 0.9 1.0 (1.5) 24.74 24.80 24.80 24.84 24.96 0.12 OUT 20 HAP SENG 0.3 0.4 0.0 0.0 (0.0) 0.7 0.0 (0.1) 9.70 9.70 9.70 9.81 9.90 0.09 OUT 21 HLFG (0.0) 0.3 (0.1) (0.3) (0.0) (0.2) (0.1) 0.3 18.74 19.10 19.10 19.00 19.20 0.20 IN 22 PPB 0.3 1.0 (1.9) (0.8) (3.0) (4.5) 1.2 (2.3) 18.50 18.54 18.54 18.58 18.78 0.20 OUT 23 TM 0.3 0.3 (0.0) 0.8 (0.3) 1.1 0.8 (1.0) 5.59 5.60 5.58 5.46 5.50 0.04 OUT 24 RHBBANK (0.4) 0.1 (0.6) (0.6) (0.2) (1.8) 0.0 0.4 5.25 5.37 5.31 5.32 5.41 0.09 IN 25 PMETAL (0.0) (0.1) (1.4) (2.0) (0.3) (3.8) (0.5) 1.7 4.99 4.95 4.96 4.95 4.98 0.03 IN 26 SIME 0.8 (0.2) (0.3) (2.3) (0.7) (2.7) (2.0) 1.6 2.62 2.70 2.66 2.60 2.62 0.02 OUT 27 YTLCORP (0.0) 0.1 0.0 (0.2) 0.2 0.0 (0.3) 0.4 1.44 1.41 1.41 1.40 1.46 0.06 IN 28 KLCCS (0.1) (0.1) (0.2) (0.0) (0.6) (1.0) 0.1 (0.6) 7.80 7.60 7.40 7.01 7.00 (0.01) OUT 29 AMBANK 0.6 (0.1) 0.1 (0.7) (0.1) (0.1) (0.7) 0.6 4.07 4.12 4.15 4.14 4.16 0.02 OUT 30 ASTRO (0.1) 0.2 (0.1) 0.9 0.2 1.1 1.0 (0.6) 2.35 2.34 2.30 2.16 2.24 0.08 IN 18.2 (15.6) 2.5 21.1 (27.6) (6.5) 10.5 (18.6) (8.2) 10.6 (33.1) (22.6) 16.6 (37.3) (20.7) 77.0 (132.3) (55.4) 15 (15) 16 (14) 11 (19) 12 (18) 11 (19) (RM'mn) INFLOW OUTFLOW NET FLOW Daily Trading Participation COMPANIES INFLOW OUTFLOW Date Retail Institution Foreign Total 15-Mar 16-Mar 19-Mar 20-Mar 21-Mar 21.9% 12.2% 22.6% 19.7% 17.8% 58.0% 38.5% 55.9% 49.6% 53.5% 20.1% 49.3% 21.5% 30.7% 28.7% 100% 100% 100% 100% 100% Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Friday, March 23, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
23. Technical View Friday , March 23, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Stock Screen Malaysia End Day Census of 22.03.2018 Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas. The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/ SELL) No Stock Name Price RSI Lower Middle Upper 14-day 10-day 30-day 50-day Vol 20-day avg vol 1 NESTLE (MALAYSIA) BERHAD 141.80 114.50 133.70 152.89 60.85 138.60 127.78 119.82 274,200 425,145 2 HARTALEGA HOLDINGS BHD 11.56 10.80 11.43 12.06 52.07 11.49 11.46 11.40 1,051,000 1,344,660 3 AYER HOLDINGS BHD 4 HONG LEONG FINANCIAL GROUP 5 GEORGE KENT (MALAYSIA) BHD 6 GENTING PLANTATIONS BHD 7 6.59 6.20 6.56 6.91 48.79 6.51 6.62 6.78 1,100 410 19.20 18.57 18.97 19.37 57.31 18.97 18.83 18.53 245,100 302,650 1,648,135 4.33 4.12 4.30 4.47 59.99 4.31 4.15 4.01 1,165,400 10.26 9.67 10.02 10.37 59.26 10.12 9.97 10.09 764,600 406,165 GENTING MALAYSIA BHD 5.24 5.01 5.18 5.35 50.59 5.22 5.21 5.31 11,405,100 7,805,605 8 RHB BANK BHD 5.40 5.24 5.36 5.48 54.89 5.33 5.31 5.30 2,570,600 2,025,355 9 MBM RESOURCES BERHAD 2.48 2.13 2.34 2.56 66.66 2.41 2.32 2.34 552,200 259,415 19.36 19.22 19.33 19.44 53.13 19.32 19.28 19.41 38,600 50,520 11 ALLIANCE BANK MALAYSIA BHD 4.33 3.98 4.19 4.40 59.92 4.26 4.17 4.19 1,375,800 2,013,365 12 INNITY CORP BHD 0.75 0.52 0.67 0.82 58.12 0.73 0.66 0.68 21,100 16,895 13 PETRONAS CHEMICALS GROUP BHD 8.21 7.92 8.09 8.27 60.14 8.12 8.07 8.08 5,260,900 7,260,880 14 DELEUM BERHAD 1.14 1.02 1.11 1.20 57.78 1.12 1.06 1.07 2,129,300 858,175 15 SHL CONSOLIDATED BHD 2.70 2.56 2.66 2.76 53.17 2.68 2.66 2.67 16,000 8,005 16 KWANTAS CORP BHD 1.50 1.41 1.48 1.54 58.56 1.50 1.45 1.44 12,000 15,950 17 YTL POWER INTERNATIONAL BHD 1.15 1.03 1.11 1.19 54.36 1.09 1.14 1.20 2,486,600 3,044,140 18 EASTLAND EQUITY BHD 0.20 0.10 0.17 0.24 59.39 0.20 0.16 0.15 9,297,900 5,982,240 19 PINEAPPLE RESOURCES BHD 0.45 0.36 0.43 0.49 54.65 0.44 0.42 0.41 12,100 17,390 20 HCK CAPITAL GROUP BHD 1.31 1.18 1.26 1.35 56.52 1.29 1.26 1.25 75,500 11,975 21 MWE HOLDINGS BERHAD 1.63 1.09 1.38 1.66 82.47 1.43 1.34 1.34 628,500 519,045 22 CIMB GROUP HOLDINGS BHD 7.29 7.13 7.22 7.32 60.27 7.22 7.15 7.05 18,775,900 15,830,880 23 KIM LOONG RESOURCES BHD 4.23 4.14 4.20 4.26 53.97 4.20 4.19 4.24 50,000 25,880 24 IOI CORP BHD 4.75 4.57 4.68 4.78 60.99 4.69 4.65 4.61 2,909,500 4,451,875 25 SENI JAYA CORPORATION BHD 0.67 0.58 0.64 0.70 52.34 0.64 0.66 0.69 1,300 1,850 26 UNITED MALACCA BHD 6.30 6.20 6.26 6.32 51.11 6.24 6.28 6.38 20,200 17,115 27 EDARAN BHD 0.71 0.50 0.62 0.73 58.46 0.62 0.62 0.66 788,400 280,420 28 GAMUDA BHD 5.10 4.92 5.02 5.12 57.83 5.02 5.00 5.04 3,536,500 3,984,040 10.54 10.27 10.41 10.56 67.41 10.38 10.30 10.15 14,327,100 17,449,420 1.10 1.01 1.06 1.12 58.08 1.08 1.05 1.10 626,900 695,875 10 LPI CAPITAL BERHAD 29 MALAYAN BANKING BHD 30 CHIN HIN GROUP BHD Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2
24. *Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy breakout trades. [UPPER BOLLINGER BREAKOUT] Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/ SELL guide) No Stock Name Price Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day Vol 20-day avg vol 1 FRASER & NEAVE HOLDINGS BHD 33.40 29.55 31.28 33.01 69.22 31.66 30.75 29.91 574,600 528,065 2 PUBLIC BANK BERHAD 24.04 22.51 23.10 23.68 89.10 23.13 22.66 22.07 8,120,500 6,124,115 3 SHANGRI-LA HOTELS (MAL) BHD 5.44 4.64 5.02 5.39 72.90 4.99 5.00 5.01 428,000 142,800 4 CLOUDARON GROUP BHD 0.35 0.16 0.23 0.30 74.32 0.25 0.23 NA 14,500 1,225 5 IDEAL JACOBS MALAYSIA CORP 0.40 0.28 0.32 0.37 70.62 0.31 0.32 0.36 5,309,700 699,140 6 PPB GROUP BERHAD 18.92 17.54 18.22 18.90 79.19 18.40 17.95 17.74 1,701,300 1,027,715 7 COMINTEL CORP BHD 0.80 0.65 0.72 0.79 67.17 0.71 0.72 0.74 4,312,700 1,564,970 8 SIN HENG CHAN (MALAYA) BHD 0.60 0.48 0.53 0.59 60.66 0.53 0.54 0.56 38,100 4,870 9 PBA HOLDINGS BHD 1.18 1.10 1.14 1.17 60.15 1.13 1.14 1.16 12,000 43,105 10 UZMA BHD 1.51 1.35 1.43 1.50 63.44 1.43 1.40 1.44 112,400 345,225 11 DIALOG GROUP BHD 2.88 2.55 2.71 2.87 67.36 2.72 2.69 2.67 8,096,200 14,379,900 12 HANDAL RESOURCES BHD 0.27 0.23 0.25 0.26 65.44 0.25 0.24 0.24 700,900 104,695 13 GOODWAY INTEGRATED INDUS BHD 0.29 0.15 0.22 0.28 70.16 0.22 0.21 0.22 24,875,300 2,428,005 14 SHIN YANG SHIPPING CORP BHD 0.29 0.20 0.24 0.28 68.89 0.25 0.23 0.24 10,385,800 2,322,125 15 ASIA MEDIA GROUP BHD 0.10 0.08 0.09 0.09 68.62 0.09 0.08 0.09 5,141,600 542,780 16 K-STAR SPORTS LTD 0.11 0.08 0.10 0.11 60.46 0.09 0.10 0.11 8,815,200 1,233,910 17 TPC PLUS BHD 0.42 0.39 0.40 0.41 60.99 0.40 0.40 0.40 56,300 58,255 18 METRONIC GLOBAL BHD 0.06 0.05 0.05 0.06 57.08 0.05 0.05 0.05 1,899,300 4,070,340 19 NTPM HOLDINGS BHD 0.54 0.49 0.52 0.54 56.24 0.51 0.52 0.55 614,000 1,966,270 20 ECOFIRST CONSOLIDATED BHD 0.30 0.28 0.29 0.30 57.78 0.29 0.29 0.29 324,700 381,435 Raw data sourced from Bloomberg *Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No Stock Name Price Bollinger Band RSI Lower Middle Upper Moving Average 14-day 10-day 30-day 50-day Vol 20-day avg vol 1 AEON CREDIT SERVICE M BHD 12.80 12.93 13.41 13.89 30.56 13.35 13.35 13.43 42,400 189,855 2 SUPERLON HOLDINGS BHD 1.42 1.51 1.68 1.85 27.92 1.65 1.65 1.76 372,300 144,650 3 GLOBETRONICS TECHNOLOGY BHD 4.66 4.74 5.56 6.37 17.89 5.35 5.82 6.10 2,547,800 846,920 4 KAWAN FOOD BHD 2.35 2.40 2.60 2.80 19.37 2.58 2.68 2.79 70,600 36,640 5 ALLIANZ MALAYSIA BHD 12.28 12.33 12.77 13.21 17.47 12.67 12.88 13.00 1,800 36,035 6 PRESTARIANG BHD 1.33 1.37 1.56 1.74 20.96 1.51 1.59 1.66 225,300 104,345 7 LII HEN INDUSTRIES BHD 2.80 2.84 3.04 3.24 24.24 3.01 3.04 3.11 293,700 288,825 8 MITRAJAYA HOLDINGS BHD 0.68 0.72 0.81 0.91 16.68 0.80 0.84 0.87 463,600 407,890 9 POH HUAT RESOURCES HLDGS BHD 1.30 1.33 1.50 1.66 24.87 1.47 1.51 1.54 310,400 197,755 10 POWER ROOT BHD 1.20 1.23 1.52 1.82 12.42 1.46 1.59 1.71 1,454,000 681,015 11 AMVERTON BHD 1.09 1.11 1.25 1.40 21.33 1.21 1.30 1.31 600 22,095 12 SUNWAY BHD 1.50 1.52 1.59 1.66 30.62 1.58 1.62 1.66 1,795,100 3,736,465 13 CENTRAL INDUSTRIAL CORP BHD 0.92 0.94 1.01 1.09 34.33 1.00 1.00 1.01 6,000 2,390 14 TSH RESOURCES BHD 1.48 1.50 1.56 1.63 24.65 1.55 1.58 1.61 46,000 214,100 1,050 15 EUROSPAN HOLDINGS BERHAD 0.64 0.65 0.71 0.76 35.54 0.69 0.70 0.71 1,000 16 ENG KAH CORP BHD 1.10 1.12 1.27 1.42 26.06 1.21 1.30 1.36 600 660 17 DKLS INDUSTRIES BERHAD 1.60 1.61 1.69 1.77 37.20 1.68 1.70 1.73 1,000 7,260 18 FORMOSA PROSONIC INDS BHD 1.69 1.70 1.83 1.96 36.16 1.81 1.82 1.85 1,080,600 723,230 19 SASBADI HOLDINGS BHD 0.33 0.34 0.46 0.58 20.03 0.44 0.47 0.53 3,017,200 2,454,965 20 MATRIX CONCEPTS HOLDINGS BHD 2.11 2.12 2.18 2.24 37.76 2.17 2.18 2.19 230,900 330,375 Raw data sourced from Bloomberg S Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Friday, March 23, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 2
25. Friday , 23 March, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only As i an Te ch n ic al R ep o r ts 1. Fore i gn Te ch n i ca l St o c k W at ch ( 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
26. Technical View Friday , March 23, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Hong Kong HSI: 31,071.05 (-343.47, -1.09%) Chartist: Stephen Soo Close Name 22-Mar HANG SENG 31,071.05 HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA GALAXY 76.30 71.75 8.27 6.81 11.70 22.50 4.29 128.10 5.53 439.40 264.00 96.15 87.70 6.74 20.95 81.00 4.31 40.00 187.60 16.36 80.90 18.78 27.30 29.10 70.05 52.60 6.31 3.27 9.67 33.60 2.95 42.75 13.36 34.70 11.46 30.10 18.32 14.48 4.35 13.60 11.12 7.20 1.85 1.46 67.20 43.65 70.80 Tel: +603-2167 9607 Bollinger Bands Change (343.47) (0.55) (0.55) (0.14) (0.05) 0.06 (0.15) (0.02) (1.70) 0.06 (23.20) (5.20) 0.00 (0.60) 0.00 0.00 0.90 0.06 (0.05) 0.40 (0.10) (0.25) 0.40 (0.05) 0.10 0.40 (0.10) 0.01 (0.07) (0.03) 0.35 (0.05) (0.45) (0.04) 0.45 (0.10) 0.05 (0.06) (0.02) 0.09 (0.46) (0.04) (0.01) (0.03) 0.02 (0.75) (0.10) 0.00 High Low Lower Mid stsoo@ta.com.my Moving Averages RSI Upper 14d 10d 30d www.taonline.com.my DMI 50d MACD DI + DI - ADX 31,686.67 31,018.44 30,108.67 31,093.47 32,078.27 53.40 31,380.28 30,866.08 31,404.93 25.38 18.76 14.96 77.30 72.80 8.55 6.99 12.04 22.95 4.38 131.50 5.65 459.00 271.00 96.90 90.60 6.90 21.65 81.30 4.31 40.40 189.90 16.58 82.00 18.78 27.60 29.60 70.50 53.60 6.39 3.38 9.85 33.95 3.02 43.60 13.50 36.05 11.74 31.35 18.66 14.66 4.38 14.12 11.30 7.27 1.90 1.47 68.80 44.35 72.50 76.30 71.65 8.24 6.77 11.68 22.40 4.26 128.00 5.50 438.60 261.40 95.90 86.95 6.70 20.80 80.00 4.24 39.80 187.10 16.30 80.55 18.46 27.05 28.90 69.95 52.50 6.29 3.24 9.65 33.10 2.95 42.55 13.30 34.05 11.38 30.00 18.28 14.42 4.27 13.54 11.08 7.19 1.85 1.44 66.85 43.30 70.50 75.09 70.05 7.86 6.61 10.90 22.56 4.13 126.57 5.21 425.25 270.83 94.95 80.10 6.10 20.46 77.29 3.82 38.64 181.13 15.01 75.79 18.29 27.00 27.09 65.15 49.75 6.15 3.39 9.28 32.52 2.93 40.00 13.17 29.19 11.45 26.95 17.78 13.16 4.31 12.63 11.05 7.04 1.87 1.40 61.79 42.12 65.62 77.36 72.50 8.30 6.89 11.33 23.21 4.32 129.38 5.42 450.65 284.11 97.78 85.87 6.40 21.92 78.79 4.08 39.51 189.91 15.68 79.23 18.73 28.94 27.93 68.04 51.45 6.32 3.57 9.80 33.89 3.05 42.26 13.78 32.21 11.87 28.46 18.32 13.80 4.64 13.63 11.37 7.34 2.09 1.51 65.66 44.28 68.99 79.63 74.95 8.74 7.16 11.76 23.85 4.51 132.19 5.62 476.05 297.39 100.60 91.64 6.70 23.38 80.28 4.34 40.38 198.69 16.35 82.66 19.18 30.88 28.77 70.92 53.14 6.49 3.74 10.33 35.26 3.18 44.52 14.40 35.23 12.29 29.96 18.86 14.44 4.97 14.62 11.70 7.63 2.31 1.62 69.52 46.45 72.35 76.82 72.21 8.42 6.95 11.35 23.15 4.35 129.69 5.38 460.12 283.12 97.84 87.74 6.49 21.63 79.10 4.20 39.69 187.75 15.94 80.45 18.73 28.49 27.98 69.21 52.10 6.31 3.53 9.69 33.46 3.01 43.17 13.93 33.53 11.91 28.55 18.36 14.07 4.55 14.02 11.40 7.26 2.01 1.47 67.23 45.03 70.33 78.49 73.38 8.24 6.85 11.33 23.30 4.31 127.88 5.44 442.73 279.46 98.20 85.07 6.34 21.99 78.01 4.01 39.05 187.55 15.42 77.64 18.76 28.85 27.79 67.21 50.98 6.30 3.58 9.99 33.33 3.07 41.93 13.59 31.20 11.74 28.61 18.30 13.65 4.69 13.28 11.29 7.37 2.12 1.55 64.36 43.96 67.81 80.84 76.24 8.33 6.94 11.76 24.30 4.37 130.34 5.68 446.95 283.11 100.01 87.22 6.46 22.49 78.39 4.04 39.72 187.82 15.42 77.83 19.49 30.06 28.68 67.18 51.85 6.39 3.75 10.53 33.57 3.36 43.20 13.79 30.90 12.03 28.87 19.27 13.91 5.05 13.03 11.59 7.72 2.21 1.62 65.22 44.50 66.69 24.40 18.71 28.32 24.96 30.40 16.09 23.96 20.64 25.21 27.52 17.97 24.37 28.51 31.86 18.59 23.44 27.45 26.09 24.51 39.81 27.38 11.88 15.91 34.59 40.08 26.19 24.94 14.35 19.15 18.32 20.34 24.65 17.67 27.84 20.22 33.71 24.02 23.53 13.26 23.64 19.89 19.60 9.08 29.16 30.93 19.51 26.25 29.09 23.55 18.02 19.77 20.17 19.57 18.07 16.16 24.13 18.41 27.75 29.78 12.48 14.60 23.35 16.03 12.44 16.08 23.10 9.09 15.35 23.44 28.24 17.21 7.55 15.52 19.25 25.91 25.53 21.85 25.64 21.19 32.65 13.29 23.35 13.32 22.82 19.00 33.45 16.71 22.47 24.17 41.06 18.82 15.00 21.82 12.70 31.81 27.24 19.38 13.64 10.77 25.17 15.90 12.21 22.24 17.03 15.80 16.80 18.55 15.33 14.53 15.32 24.56 15.65 15.99 30.50 22.62 27.54 17.70 13.94 37.62 17.78 12.76 14.91 32.89 15.47 30.30 30.78 13.74 25.13 14.13 20.43 20.94 11.32 20.74 29.44 12.31 NA 37.14 26.30 19.58 10.83 18.90 40.40 41.37 53.30 48.51 54.89 37.65 48.41 52.01 50.26 56.83 40.66 40.91 54.06 64.07 40.01 62.41 63.50 56.70 47.76 80.06 62.61 40.40 36.88 58.98 58.99 60.43 48.98 34.21 40.97 46.66 30.36 55.54 42.84 65.68 41.22 61.43 46.41 65.61 27.43 60.70 41.75 40.55 22.08 37.19 59.04 46.97 58.26 Diff Line 6.62 123.27 (4.69) (4.84) 10.30 5.19 10.23 (3.48) 5.88 4.47 1.08 9.11 (9.77) (5.41) 16.03 17.27 (4.76) 7.40 15.01 10.02 1.41 30.72 12.04 (11.57) (12.33) 17.38 32.53 10.67 5.69 (11.56) (6.37) (3.52) (5.30) 3.46 (14.98) 14.54 (3.13) 20.39 1.21 4.53 (20.19) 6.93 (2.58) (4.57) (31.99) 10.34 15.93 (2.31) 13.55 -1.05 -1.02 0.07 0.01 -0.05 -0.33 0.01 0.16 -0.07 7.04 -0.45 -0.72 1.11 0.06 -0.31 0.42 0.07 0.16 -0.20 0.26 1.28 -0.20 -0.53 -0.02 0.87 0.36 -0.02 -0.07 -0.23 -0.06 -0.09 0.21 0.02 1.11 -0.04 0.07 -0.20 0.13 -0.16 0.40 -0.06 -0.12 -0.09 -0.05 1.07 0.21 1.30 Signal 41.63 -1.21 -1.34 0.05 0.01 -0.11 -0.36 0.00 0.01 -0.09 5.29 1.62 -0.69 0.38 0.02 -0.22 0.25 0.05 0.07 0.10 0.17 1.00 -0.20 -0.33 -0.12 0.67 0.12 -0.01 -0.06 -0.28 0.04 -0.11 -0.03 0.07 0.97 -0.01 -0.05 -0.29 0.03 -0.15 0.35 -0.04 -0.14 -0.06 -0.05 0.71 0.25 1.19 DMI Diff 81.64 BUY 0.17 0.32 0.02 (0.00) 0.06 0.04 0.00 0.15 0.02 1.75 (2.06) (0.03) 0.72 0.04 (0.08) 0.17 0.02 0.09 (0.30) 0.09 0.28 (0.00) (0.20) 0.10 0.20 0.24 (0.00) (0.01) 0.05 (0.10) 0.02 0.24 (0.06) 0.14 (0.03) 0.12 0.09 0.10 (0.01) 0.05 (0.01) 0.02 (0.02) 0.00 0.36 (0.04) 0.12 MACD Recent Signal SELL SELL BUY BUY BUY SELL BUY BUY BUY BUY SELL SELL BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL SELL BUY BUY BUY BUY SELL SELL SELL SELL BUY SELL BUY SELL BUY BUY BUY SELL BUY SELL SELL SELL BUY BUY SELL BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL SELL BUY BUY SELL BUY BUY BUY SELL BUY BUY SELL SELL BUY BUY BUY SELL SELL BUY SELL BUY BUY SELL BUY SELL BUY BUY BUY SELL BUY SELL BUY SELL BUY BUY SELL BUY The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last two columns are auto generated. Page 1 of 3
27. 23-Mar-18 Corporate News : Petrochina’s revenue and profitability should continue to improve on higher average oil prices in 2018, which likely lift profit in the E&P segment. With a breakeven cost of USD50 a barrel, upstream earnings could triple if Brent stays at current levels of over USD65. – Bloomberg. Technical Comments: Petrochina shares could climber higher on bullish technical momentum to target the 76.4%FR (HKD6.04), with a confirmed breakout to re-test the peak of 29/01/18 (HKD6.66), and the 123.6%FP (HKD7.27) acting as the stronger resistance, going forward. Key uptrend support is found at the 38.2%FR (HKD5.09). PETROCHINA CO HKD5.53 (+0.06) BOLLINGER BANDS Upper Middle Lower HKD HKD HKD SIMPLE MOVING AVERAGES 5.64 5.42 5.20 10-day 30-day 50-day DMI Recent Signal HKD HKD HKD 5.40 5.42 5.67 DAILY MACD BUY Recent Signal BUY Page 2 of 3
28. 23-Mar-18 INTERPRETATION OF TECHNICAL INDICATORS : Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 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. Fundamentals of Foreign Technical Picks Bloomberg Ticker 5 941 939 1398 883 2628 3988 16 857 700 388 1 2318 386 1088 2 494 2388 11 3 19 101 4 688 6 12 3328 1898 762 23 330 66 83 291 17 1109 144 836 2600 293 267 1199 2038 678 1299 1928 27 HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK Stock Name Close Target Price % upside HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA LTD GALAXY 76.30 83.41 71.75 8.27 EPS ($) PER(x) Div Yield(%) 52week Price % Chg 2017 2018 2017 2018 2017 2018 High Low YTD 9% 0.7 0.8 13.5 12.8 0.7 0.7 86.00 61.80 -4.57 96.45 26% 5.8 6.0 10.0 9.7 4.2 4.0 87.64 70.00 -9.46 10.58 22% 1.0 1.0 6.9 6.4 3.5 3.7 9.39 5.91 14.86 6.81 8.60 21% 0.8 0.9 6.9 6.4 3.5 3.8 7.64 4.83 8.27 11.70 14.23 18% 0.7 1.0 13.6 9.2 3.5 4.2 13.16 8.45 4.28 22.50 31.40 28% 1.2 1.4 15.7 12.7 1.8 2.2 28.20 22.30 -8.35 4.29 5.57 23% 0.6 0.6 5.9 5.5 4.1 4.4 4.96 3.57 11.72 128.10 152.57 16% 10.4 11.2 12.4 11.4 3.5 3.7 139.60 112.30 -1.76 5.53 6.76 18% 0.1 0.3 35.4 16.6 1.9 2.2 6.66 4.68 1.47 439.40 508.41 14% 9.0 11.8 39.6 29.9 0.2 0.3 476.60 218.20 8.23 264.00 315.30 16% 7.7 8.8 34.2 30.1 2.7 3.0 306.00 188.50 10.09 96.15 120.76 20% 10.2 10.8 9.4 8.9 3.2 3.4 108.90 93.05 -1.99 87.70 105.89 17% 5.3 6.2 13.3 11.4 1.6 1.9 98.85 41.55 7.81 6.74 7.78 13% 0.4 0.5 12.3 10.9 4.1 4.5 7.16 5.40 17.63 20.95 25.94 19% 2.4 2.3 7.0 7.3 4.3 4.3 25.75 14.90 3.46 81.00 82.78 2% 5.5 5.0 14.7 16.2 3.7 3.7 85.50 75.05 1.31 0.47 4.31 4.15 -4% 0.0 0.0 18.3 18.9 0.8 1.0 4.47 2.75 40.00 43.11 7% 2.9 3.1 14.0 12.8 3.6 3.8 42.15 30.33 1.01 187.60 190.34 1% 11.3 12.5 16.5 15.0 4.0 4.3 197.50 153.00 -3.30 16.36 13.43 -22% 0.6 0.6 28.3 27.0 2.3 2.5 16.58 13.75 6.79 80.90 89.35 9% 4.6 5.5 17.5 14.8 3.1 3.7 82.55 71.85 11.82 18.78 21.93 14% 1.1 1.0 17.6 18.2 4.0 4.0 21.80 17.28 -1.68 27.30 30.98 12% 2.3 2.4 12.0 11.2 2.8 3.0 34.00 23.96 1.11 29.10 33.86 14% 3.3 3.8 8.9 7.7 3.0 3.4 32.20 21.50 15.71 70.05 69.95 0% 3.4 3.7 20.4 19.2 4.8 4.1 73.95 60.24 6.22 52.60 56.23 6% 3.7 3.7 14.3 14.3 3.3 3.4 56.00 42.73 2.14 6.31 7.30 14% 0.9 1.0 5.6 5.3 4.3 4.5 7.13 5.47 8.79 3.27 4.27 23% 0.3 0.3 8.3 8.7 2.8 2.6 4.31 3.24 -7.37 9.67 13.29 27% 0.3 0.5 26.2 16.8 1.3 2.0 13.24 9.29 -8.43 33.60 28.90 -16% 2.0 2.2 16.8 15.1 2.8 3.0 36.00 30.60 -0.74 -29.43 2.95 3.43 14% -0.5 0.1 N/A 44.0 0.0 0.2 6.81 2.95 42.75 44.22 3% 1.8 1.9 24.2 22.6 2.7 2.8 47.75 40.55 -6.66 13.36 15.42 13% 0.9 0.8 15.3 16.7 7.6 4.1 14.60 12.06 -0.43 34.70 32.39 -7% 0.7 0.9 40.5 32.7 0.7 0.8 36.05 17.46 23.71 11.46 13.79 17% 0.8 0.9 14.8 13.0 4.1 4.2 13.00 9.37 -2.39 30.10 34.50 13% 3.5 4.1 8.7 7.3 3.9 4.6 34.45 19.86 30.87 18.32 24.74 26% 1.6 1.6 11.2 11.7 11.6 4.3 26.02 17.60 -10.42 14.48 16.78 14% 1.4 1.7 10.0 8.6 6.0 6.0 16.36 12.82 -0.55 4.35 6.20 30% 0.1 0.3 24.0 12.3 0.0 0.6 7.55 3.43 -22.18 13.60 14.51 6% 0.2 1.0 N/A 13.9 0.6 2.4 14.82 10.20 12.21 11.12 N/A N/A 1.7 1.7 6.7 6.6 3.1 3.5 12.80 10.66 -1.42 7.20 9.09 21% 0.1 0.1 11.8 11.1 0.4 0.4 9.95 7.10 -11.44 1.85 2.27 18% 0.0 0.0 N/A 78.6 0.0 0.0 3.06 1.85 -22.27 1.46 N/A N/A NA NA N/A N/A NA NA 2.47 1.42 -15.61 67.20 77.46 13% 0.5 0.5 18.2 16.3 0.2 0.3 69.85 48.20 0.83 43.65 50.77 14% 0.2 0.3 22.3 19.6 0.6 0.6 49.35 33.25 8.18 70.80 77.20 8% 2.9 3.2 24.7 22.3 1.2 1.3 72.50 39.06 12.92 Note: The above data is based on Bloomberg consensus Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Friday, March 23, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3