Bursa Malaysia Daily Market Report - 24 April

Transcription

1. Tuesday , 24 April, 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 . Ga d a n g H o l d in g s Be r h a d : E x p e c tin g a We a k e r 4 Q F Y 1 8 2 . T r i -M o d e S ys t e m (M ) Be r h a d : ( I PO ) “ L o w - R i sk ” M o d e l w ith Sc a le a n d D iv e rs i ty Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck W at ch , D ai l y Mon e y F lo w , D a il y St oc k Sc reen ( Loc al ) 2. D ai l y For ei gn T ech n i c al St o ck W a t ch ( F SS T I ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
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Daily Market Commentary Tuesday , 24 April 2018 TA Research, e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (23.04.2018) Volume (mil) +/-chg (RMmn) Main Market 1,209.1 Warrants 430.8 ACE Market 299.3 Bond 1.9 ETF 0.8 LEAP 0.0 Total 1,941.9 Off Market 48.0 -313.9 -106.0 -66.1 -7.1 -0.1 0.0 1,514.4 96.7 50.4 0.4 1.4 0.0 1,663.2 -41.8 21.1 -473.1 -18.2 -6.7 -0.7 0.2 0.0 -47.6 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP April 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 Review & Outlook Value Value/ +/-chg Volume Up Down 1.25 0.22 0.17 0.19 1.73 0.33 0.86 0.44 153 42 18 1 2 0 216 % chg % YTD chg 1,880.36 13,079.66 14,638.24 1,878.50 -7.39 -88.88 -252.72 -10.50 -0.39 -0.67 -1.70 -0.56 4.65 1.06 -14.15 5.24 24,448.69 7,128.60 7,398.87 22,088.04 2,474.11 30,254.40 3,579.54 1,790.14 6,308.15 3,068.01 1,764.20 5,886.01 -14.25 -17.52 30.70 -74.20 -2.22 -163.93 6.16 -11.14 -29.55 -3.53 -14.14 17.24 -0.06 -0.25 0.42 -0.33 -0.09 -0.54 0.17 -0.62 -0.47 -0.11 -0.80 0.29 -1.09 3.26 -3.76 -2.97 0.27 1.12 5.19 2.08 -0.75 -7.23 -7.12 -2.95 425 209 72 4 1 0 711 Bursa Malaysia shares slipped into profit-taking correction mode Monday, as falls in crude oil prices and US technology shares and rising US bond yields tempered investors' risk appetite. The KLCI shed 7.39 points to settle at 1,880.36, off an early high of 1,891.59 and low of 1,878.37, as losers trashed gainers 711 to 216 on cautious trade totaling 1.94bn shares worth RM1.66bn. Stocks are likely to extend profit-taking consolidation due to overbought technical momentum following the recent rally on key index heavyweights to record highs. Immediate uptrend supports for the index on pullbacks are from the rising 10 and 30-day moving averages at 1,877 and 1,861 respectively, followed by the 50-day ma (1,857). Looking ahead, a convincing breakout above the 1,896 high should aim for 1,921, the 123.6% Fibonacci Projection (FP) of the Dec 2017 low (1,708) to the 1,880 peak. Any strength on CIMB shares towards the 27/2/18 peak (RM7.39) is expected to attract profit-taking interest due to toppish chart pattern, while stronger supports are near the lower Bollinger band (RM6.95), 100 and 200-day moving averages at RM6.87 and RM6.65 respectively. Similarly, Maybank should meet profit-taking resistance on any further strength towards the 123.6%FP (RM10.84), while key chart supports are at RM10.24, and the 100-day moving average (RM10.05). News Bites • Tenaga Nasional Bhd has signed a 21-year large-scale solar photovoltaic power purchase agreement with Halpro Engineering Sdn Bhd. • Public Bank Bhd will be opening an additional six branches in Vietnam this year, increasing its total number of branches in Vietnam to 19. • Pecca Group Bhd will see a delay in the utilisation of its IPO proceeds of about RM2.6mn, while RM6.6mn will see some variation in its utilisation. • Caely Holdings Bhd is in talks with several China-based lingerie companies for a potential collaboration, as part of its plans to expand its undergarments business in the region. • Priceworth International Bhd is close to clinching a RMB192mn deal to supply 60,000m3 per year of container flooring to Guangdong-based manufacturer Foshan Zhengsen Woodworking Co. • Malaysia Smelting Corp Bhd proposed to undertake two corporate exercises comprising a 2-for-1 share split and a 1-for-1 bonus issue at Top 10 KLCI Movers Based on an entitlement date to be determined later. Off Market • Amtek Holdings Bhd's proposed disposal of its inventories of 'Crocodile' Mkt Cap. brand apparel and accessories is fair and reasonable as it is deemed to (mn) (RM) Counter Mkt Cap. Chg Vol. be in the best interest of the group, says the independent adviser for (RM’mn) (RM) (mn) the deal. IDEAL 29.7 @ 0.54 • Axis Real Estate Investment Trust is adding a freehold industrial property MAYBANK 115,893 -0.10 5.34 PMHLDG 10.0 @ 0.15 in Shah Alam, Selangor, which it is acquiring for RM87mn, to its portfolio. TENAGA 89,976 -0.04 10.93 SMRT 6.0 @ 0.15 • KIP Real Estate Investment Trust is planning to purchase an asset in PCHEM 67,680 -0.02 5.55 CICB 1.0 @ 1.00 Kota Warisan, Sepang from the promoter's KIP Group of Companies by CIMB 66,793 -0.06 6.66 the financial year ending June 30, 2019. IHH 50,262 -0.02 5.72 • Cahya Mata Sarawak Bhd group chairman Tan Sri Syed Anwar Jamalullail HLBANK 39,603 -0.04 0.26 is stepping down on expiry of his contract on May 9 and the deputy PETGAS 36,052 -0.38 0.40 group chairman Datuk Seri Mahmud Abu Bekir Taib, 54, will take the DIGI 34,910 -0.04 10.20 helm as interim chairman. • Gadang Holdings Berhad's 9MFY18 net profit of RM71.9mn came in MISC 31,604 -0.12 2.01 within expectations, accounting for 76.5% and 73.7% of ours and GENM 28,746 -0.09 1.86 consensus' full-year estimates. Exchange Rate • IGB Real Estate Investment Trust's net property income rose 6.7% to Commodities Futures RM102.5mn in 1QFY18 from RM96.1mn a year ago due to higher USD/MYR 3.9090 0.011 Palm Oil (RM/mt) 2,406.00 -10.00 rental income and lower operating expenses. Crude Oil ($/Barrel) 68.86 0.52 USD/JPY 108.70 0.960 • GuocoLand (Malaysia) Bhd reported an almost six-fold increase in its Gold ($/tr.oz.) 1,326.50 -9.80 EUR/USD 1.221 -0.0076 net profit to RM55.7mn for 3QFY18, from RM8.3mn in the previous year's corresponding quarter, due to the gain on disposals of several assets during the quarter. Important Dates • Cycle & Carriage Bintang Bhd recorded a net loss of RM2.7mn in 1QFY18, compared with a net profit of RM312K a year ago, as margins AKNIGHT - 6:1 Rights Issue - RI of 348.8m shares together with remain highly compressed as a result of demand shifting to the lower174.4m free detachable warrants. priced models. 6 rights shares together with 3 warrants for every 1 existing share • The US softened its position on sanctions against Russia's United Co held, at an issue price of RM0.10 per rights share. Rusal, sparking a plunge in aluminum prices. • The flash Markit/Nikkei Japan Manufacturing Purchasing Managers Trading of Rights: 18/04 - 24/04/2018. Index rose to a seasonally adjusted 53.3 in April from a final 53.1 in the Application Closed: 03/05/2018. LISTING ON: 17/05/2018. previous month. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. Tuesday , April 24, 2018 FBMKLCI: 1,880.36 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 Profit-taking Pause on Overbought Momentum Bursa Malaysia shares slipped into profit-taking correction mode Monday, as falls in crude oil prices and US technology shares and rising US bond yields tempered investors’ risk appetite. The KLCI shed 7.39 points to settle at 1,880.36, off an early high of 1,891.59 and low of 1,878.37, as losers trashed gainers 711 to 216 on cautious trade totaling 1.94bn shares worth RM1.66bn. Uptrend Supports at 1,877/1,861 Stocks are likely to extend profit-taking consolidation due to overbought technical momentum following the recent rally on key index heavyweights to record highs. Immediate uptrend supports for the index on pullbacks are from the rising 10 and 30-day moving averages at 1,877 and 1,861 respectively, followed by the 50-day ma (1,857). Looking ahead, a convincing breakout above the 1,896 high should aim for 1,921, the 123.6% Fibonacci Projection (FP) of the Dec 2017 low (1,708) to the 1,880 peak. Sell Rally CIMB & Maybank Any strength on CIMB shares towards the 27/2/18 peak (RM7.39) is expected to attract profittaking interest due to toppish chart pattern, while stronger supports are near the lower Bollinger band (RM6.95), 100 and 200-day moving averages at RM6.87 and RM6.65 respectively. Similarly, Maybank should meet profit-taking resistance on any further strength towards the 123.6%FP (RM10.84), while key chart supports are at RM10.24, and the 100-day moving average (RM10.05). Most Asian Markets Fell as Investors Digest U.S. Yields Most Asian stocks dipped on Monday as investors kept an eye on rising U.S. Treasury yields and digested declines in technology stocks seen stateside. The subdued performance in Asia followed declines in U.S. stock indexes on Friday amid a fall in Apple shares, which pushed the technology sector lower. Also of note was the overall move higher in U.S. Treasury yields, which has in turn supported the dollar. On the geopolitical front, U.S. President Donald Trump said on Sunday the North Korean nuclear crisis was a long way from being resolved, striking a cautious note a day after the North pledged to end its nuclear tests. Japan’s Nikkei share average fell as index heavyweight stocks such as SoftBank and Terumo lost ground, offsetting gains in financials, which rallied after U.S. yields rose. The Nikkei ended down 0.3 percent at 22,088.04 points. Elsewhere, the Kospi closed off by 0.09 percent at 2,474.11, with automakers and retailers declining as steelmakers climbed. China’s major stock indexes ended little changed on Monday, though tech firms were sold amid ZTE woes. The Shanghai Composite Index slipped 0.1 percent to 3,068.01 points. Gains, however, were seen in Australia, as the S&P/ASX 200 advanced 0.29 percent to 5,886.00, with the financials subindex and gold producers leading gains. Page 1 of 7
4. 24-Apr-18 Dow Edge Lower as Tech and Rising Bond Yields Weigh U .S. stocks ended the session little changed Monday as a slump in shares of technology companies weighing on major indexes and investors grappled with rising bond yields. Tech stocks dragged on both the S&P 500 and the Nasdaq ahead of a big week of earnings for the sector. Chipmaker shares dropped after the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd, cut its full-year revenue target due to softer demand for smartphones. Meanwhile, yields on 10-year U.S. Treasuries rose to their highest level since January 2014 amid concerns over the growing supply of government debt and accelerating inflation. The long-dated Treasury note reached as high as 2.996 percent in early trade before moving back down to 2.973 percent, settling just below the psychologically important 3 percent level. Wall Street also braced for the busiest week of the earnings season. More than 170 companies are expected to have released their quarterly results by the end of the week, including tech giants Amazon and Facebook. Overall, this earnings season has been strong thus far. More than 82 percent of S&P 500 companies that have reported through Monday morning have topped earnings estimates, according to Fact-Set. The Dow Jones Industrial Average fell 14.25 points, or 0.06 percent, to 24,448.69, the S&P 500 gained 0.15 points, or 0.01 percent, to 2,670.29 and the Nasdaq Composite dropped 17.53 points, or 0.25 percent, to 7,128.60. Page 2 of 7
5. 24-Apr-18 News In Brief Corporate Tenaga Nasional Bhd has signed a 21-year large-scale solar photovoltaic power purchase agreement with Halpro Engineering Sdn Bhd . Halpro will design, construct, own, operate and maintain a solar photovoltaic energy generating facility of 30MWac to be located in Mukim Bebar, Daerah Pekan, Pahang. (The Edge) Public Bank Bhd will be opening an additional six branches in Vietnam this year, increasing its total number of branches in Vietnam to 19, its managing director Tan Sri Tay Ah Lek said at the group's annual general meeting. The group had previously opened six branches in 2017 and seven in 2016. (The Edge) Pecca Group Bhd will see a delay in the utilisation of its IPO proceeds of about RM2.6mn, while RM6.6mn will see some variation in its utilisation. The board of directors have approved of the variation and extension of time for the utilisation of the proceeds raised. The extension will be for another 24 months from April 19 this year. Among some of the variation and delay of the utilisation of the proceeds were in the estimated listing expenses, purchase of new machineries for the production of car leather seat covers, as well as the expansion into retail and aviation markets. (Bursa Malaysia) Comment: We are unsurprised by the announcement of extension as Pecca had previously mentioned that its capacity is sufficient to support current demand. Furthermore, gaining approvals for the aviation business have taken longer than expected whilst Pecca piggybacked its retail business onto car tint dealers. In summary, the announcement is well within expectations and may translate to higher dividend payout in the future. Maintain earnings forecast and TP of RM1.62/share. Reiterate Buy. Caely Holdings Bhd is in talks with several China-based lingerie companies for a potential collaboration, as part of its plans to expand its undergarments business in the region. The group’s medium term plans would be to grow the undergarments segment until it is ripe for monetising, via a potential spin-off of its undergarments manufacturing division in the appropriate stock exchange as deemed fit and relevant, among other options. (The Edge) Priceworth International Bhd is close to clinching a RMB192mn (RM120mn) deal to supply 60,000m3 per year of container flooring to Guangdong-based manufacturer Foshan Zhengsen Woodworking Co. It signed a memorandum of understanding with Foshan Zhengsen on April 21, for the intended supply of container flooring. The RMB4mn (RM2.5mn) advance payment from Foshan Zhengsen will go towards funding this new production line. The balance of the capital expenditure will be funded by hire purchase financing of about RM8mn. (The Edge) Malaysia Smelting Corp Bhd proposed to undertake two corporate exercises comprising a 2-for-1 share split and a 1-for-1 bonus issue at an entitlement date to be determined later. The move is in line with the group’s aim to reward its shareholders while enhancing its capital base. (Bursa Malaysia) Amtek Holdings Bhd's proposed disposal of its inventories of ‘Crocodile’ brand apparel and accessories is fair and reasonable as it is deemed to be in the best interest of the group, says the independent adviser for the deal. The adviser said the rationale for the disposal is reasonable as Amtek has been incurring consecutive operating losses financial year ended 2015 to 2017 on the back of challenging operating environment and cautious household spending. (The Edge) Page 3 of 7
6. 24-Apr-18 Axis Real Estate Investment Trust is adding a freehold industrial property in Shah Alam , Selangor, which it is acquiring for RM87mn, to its portfolio. Its trustee, RHB Trustees Bhd, inked a sale and purchase agreement with Teraju Sinar Sdn Bhd to acquire the asset, which comprises two adjoining parcels of land on which four warehouse blocks, a double-storey detached office building, a double-storey canteen building, and two guardhouses have been erected. (Bursa Malaysia) KIP Real Estate Investment Trust (REIT) is planning to purchase an asset in Kota Warisan, Sepang from the promoter’s KIP Group of Companies, which is under KIP REIT’s right of first refusal, by the financial year ending June 30, 2019 in a bid to boost its total asset under management to RM2bn. (The Edge) Cahya Mata Sarawak Bhd group chairman Tan Sri Syed Anwar Jamalullail is stepping down on expiry of his contract on May 9, after serving almost 12 years in the post. The deputy group chairman Datuk Seri Mahmud Abu Bekir Taib, 54, will take the helm as interim chairman of the group on May 10 while the group sources a permanent candidate for the position. (Bursa Malaysia) IGB Real Estate Investment Trust’s net property income rose 6.7% to RM102.5mn in 1QFY18 from RM96.1mn a year ago due to higher rental income and lower operating expenses. Distributable income grew 8.24% YoY to RM91.9mn from RM84.9mn previously. (Bursa Malaysia) Gadang Holdings Bhd expects its current financial year ending May 31, 2018, to end on a weaker note from the previous year, due to what it termed "sluggish market condition" of the property sector. Its net profit for the 3QFY18 experienced a marginal 3% YoY decline to RM25.1mn from RM25.8mn, on lower revenue contribution from its construction and utility divisions. For its 9MFY18, Gadang’s net profit was up a slight 2% YoY to RM71.9mn from RM70.4mn. (Bursa Malaysia) GuocoLand (Malaysia) Bhd reported an almost six-fold increase in its net profit to RM55.7mn for 3QFY18, from RM8.3mn in the previous year’s corresponding quarter, due to the gain on disposals of several assets during the quarter. The group disposed its entire interests in JB Parade Sdn Bhd and PD Resort Sdn Bhd to GuocoLand Hotels Pte Ltd, resulting in a gain of approximately RM104.8mn. For 9MFY18, net profit dropped 52% YoY to RM57.7mn from RM119.4mn in the previous year. (Bursa Malaysia) Cycle & Carriage Bintang Bhd recorded a net loss of RM2.7mn in 1QFY18, compared with a net profit of RM312K a year ago, as margins remain highly compressed as a result of demand shifting to the lower-priced models. The lower earnings came despite a 10% YoY rise in group revenue to RM388.6mn from RM352.7mn, as vehicle unit sales grew 21%, with the sales mix moving from S-Class to C, GLC and E-Classes. (Bursa Malaysia) Page 4 of 7
7. 24-Apr-18 N e w s I n B r i e f Economy Asia Japan Manufacturing Picks Up in April but Export Orders Fall : Flash PMI Japanese manufacturing activity expanded at a faster pace in April than the previous month as output and domestic demand picked up, in a sign the economy is recovering from an expected rough patch in the first quarter. However, a private survey also showed export orders fell for the first time in more than a year and a half as a gradual appreciation in the yen starts to erode Japan’s export competitiveness. The flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 53.3 in April from a final 53.1 in the previous month. The index remained above the 50 threshold that separates expansion from contraction for the 20th consecutive month and rose for the first time in three months. The index for total new orders rose to a preliminary 53.5 from a final 53.1 in the previous month, but export orders shrank marginally, the contraction in external demand since August 2016. Japan’s economy is forecast to have expanded an annualized 0.5% in the first quarter as consumer spending and factory output weakened, according to a poll. That would be a marked slowdown from 1.6% annualised growth in the fourth quarter. (Reuters) Singapore Inflation Eases in March Singapore's inflation remained muted in March, as the cost of food and services rose more slowly compared with the preceding month and COE prices dropped. The consumer price index - the main measure of inflation - edged up 0.2% in March compared with the same month last year, according to Department of Statistics data. This was below February's 0.5% rise and also below economist estimates of a 0.5% increase. This came as services inflation slowed to 1.4%in March from 1.9% in the previous month, mainly reflecting smaller increases in air fares and holiday expenses a year earlier. The cost of private road transport also fell by 0.6% in March, reversing the 0.6% increase in February, due to lower car prices following a decline in certificate of entitlement (COE) premiums. Food inflation dipped to 1.4% last month from 1.5% in February, due to a smaller increase in the prices of non-cooked food items and prepared meals. Core inflation - which strips out accommodation and private road transport costs to better gauge everyday expenses - eased to 1.5% in March from 1.7% in February, reflecting lower services inflation. (The Straits Times) United States U.S. Existing-Home Sales Rose in March Sales of previously-owned U.S. homes grew in March for the second consecutive month. Existing-home sales increased 1.1% in March from the previous month to a seasonally annual rate of 5.60 million, the National Association of Realtors said. Compared with a year earlier, March sales declined 1.2%. Economists surveyed by The Wall Street Journal had expected a sales rate of 5.55 million last month. Home sales declined in both December and January before rebounding in February and March. Some analysts were previously concerned the winter back-to-back declines signaled a longer-term sales slowdown following a strong 2017. A limited supply of homes at the price and location buyers desire has helped drive up prices in many regions. There was a 3.6-month supply of homes on the market in March, based on the current sales pace. The median sale price for an existing home in March was $250,400, up 5.8% from a year earlier. Lagging inventories for lower-end homes is helping push down home sales. Transactions for homes priced below $250,000 declined in March on an annual basis, while transactions for homes priced above $250,000 grew robustly from the prior year. (WSJ) Page 5 of 7
8. 24-Apr-18 US Softens Stance on Rusal Sanctions , Aluminum Prices Tumble The US softened its position on sanctions against Russia’s United Co Rusal, sparking a plunge in aluminum prices. The US Treasury said it would provide sanctions relief to Rusal if Oleg Deripaska relinquished control, according to statement. It also extended the deadline for companies to wind down dealings with the Russian aluminum producer by almost five months. Aluminum plunged as much as 8.3% after the news, the biggest intraday drop since 2005. Rusal produces about 6% of the world’s aluminum and operates mines, smelters and refineries across the world from Guinea to Ireland, Russia to Jamaica. Washington’s softening of its stance follows two weeks of chaos on global metals markets, after the sanctions triggered a surge in aluminum prices to multi-year highs and fears of shutdowns at Rusal plants. A German lobbying group said last week that European plants may be forced to close and carmakers could face supply shortages. In a separate statement, Treasury Secretary Steven Mnuchin said the US is considering a petition from Rusal to remove it from the sanctions list. (The Star) Europe and Uni ted Kingdom Eurozone Business Growth Stabilizes but Euro a Rising Concern Business activity across the Eurozone was still growing as the second quarter began, but at a more modest rate than around the turn of the year, a survey showed. The Eurozone unexpectedly was one of the best-performing major economies last year. But after peaking in January, growth has steadily slowed on a strong currency and fears a trade spat between China and the United States could start to hurt. IHS Markit’s composite flash Purchasing Managers’ Index (PMI) for the Eurozone, seen as a good guide to overall economic health, held steady in April at March’s 14-month low of 55.2, defying a Reuters poll forecast for a fall to 54.9. Germany and France, the bloc’s two biggest economies and the only ones to publish flash readings, showed improvement, suggesting growth must have slowed in other big economies. Still, survey compiler IHS Markit said the PMI pointed to solid quarterly GDP growth of 0.6%, matching the consensus view in the latest Reuters poll. (Reuters) Eurozone Government Deficit Narrows in 2017 The euro area government deficit narrowed in 2017, data published by Eurostat showed. The government deficit to GDP ratio fell to 0.9% from 1.5% in 2016. The government deficit totaled EUR 98.92 billion compared to EUR 159.01 billion last year. In the EU28, the deficit to GDP dropped to 1% from 1.6% in the prior year. Germany logged a budget surplus of 1.3% of GDP. Meanwhile, France registered a deficit of 2.6% of GDP. In Italy, the shortfall was 2.3% of GDP. Two member states had deficits equal to or higher than 3% of GDP, namely Spain and Portugal. At the end of 2017, the lowest ratio of government debt to GDP was recorded in Estonia. (RTT) Page 6 of 7
9. 24-Apr-18 Share Buy-Back 23-April 2018 Company E &O GRANFLO HAIO INCKEN JCBNEXT KOMARK MALAKOF NYLEX P&O PRESTAR RCECAP SNTORIA SYSCORP TEXCYCL Bought Back 10,000 30,000 23,700 29,200 15,000 17,000 515,300 5,000 2,000 28,600 84,800 95,000 280,000 27,000 Price (RM) Hi/ Lo (RM) 1.43 0.215/0.21 4.99/4.92 0.685/0.675 1.70/1.69 0.18 0.89 0.73/0.715 1.08 0.87 1.36/1.34 0.60/0.59 0.25 0.68/0.67 1.43/1.42 0.215/0.21 5.04/4.90 0.685/0.675 1.77/1.69 0.18 0.895/0.89 0.73/0.715 1.08/1.03 0.875/0.86 1.36/1.34 0.60/0.59 0.245/0.23 0.68/0.67 Total Treasury Shares 29,211,747 9,453,900 9,215,288 17,796,800 302,100 7,545,000 60,693,900 6,714,424 11,770,293 7,835,800 14,400,425 8,095,800 5,331,800 1,947,950 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 7 of 7
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 23-Apr-18 AUTOMOBILE BAUTO 2.20 2.33 5.9% Buy 2,550 0.55 12.1 19.0 18.2 11.6 5.0 5.2 2.47 -10.9 1.84 19.6 0.0 MBMR 2.45 2.68 9.4% Hold 958 0.70 24.7 26.9 9.9 9.1 2.4 2.9 2.60 -5.8 2.01 21.9 11.4 PECCA 1.15 1.62 40.9% Buy 212 0.64 9.7 10.9 11.9 10.5 4.3 4.3 1.70 -32.4 1.13 1.8 -25.8 SIME 2.78 2.55 -8.3% Sell 18,906 1.64 13.2 16.4 21.1 17.0 1.2 1.5 3.06 -9.2 2.03 37.2 25.8 UMW 6.10 5.52 -9.5% Sell 7,127 1.42 28.6 40.2 21.3 15.2 2.3 3.3 6.98 -12.6 4.70 29.8 17.3 BANKS & FINANCIAL SERVICES ABMB 4.36 4.60 5.5% Sell 6,750 1.11 32.6 35.8 13.4 12.2 3.7 3.7 4.49 -2.9 3.62 20.4 6.9 AFFIN 2.53 2.40 -5.1% Sell 4,916 0.93 22.2 23.9 11.4 10.6 3.2 3.2 2.98 -15.0 2.22 13.9 9.5 AMBANK 3.86 4.70 21.8% Buy 11,635 1.56 38.1 44.4 10.1 8.7 4.7 4.7 5.70 -32.3 3.61 6.9 -12.5 CIMB 7.24 8.60 18.8% Buy 66,793 1.57 58.2 59.9 12.4 12.1 4.0 4.1 7.39 -2.0 5.65 28.1 10.7 HLBANK 19.36 21.30 10.0% Buy 39,603 0.87 116.8 126.8 16.6 15.3 2.5 2.5 20.02 -3.3 13.72 41.1 13.9 MAYBANK 10.62 11.50 8.3% Buy 115,926 1.01 73.8 77.9 14.4 13.6 5.2 5.2 10.72 -0.9 9.10 16.7 8.4 PBBANK 24.30 27.30 12.3% Buy 93,834 0.68 153.3 166.5 15.9 14.6 2.4 2.5 24.34 -0.2 19.90 22.1 16.9 RHBBANK 5.36 6.10 13.8% Buy 21,494 1.56 54.3 59.0 9.9 9.1 2.8 2.8 5.61 -4.5 4.71 13.8 7.2 BURSA 7.36 7.04 -4.3% Buy 5,934 0.89 29.2 30.0 25.2 24.5 4.9 4.9 7.65 -3.8 6.31 16.6 9.1 ANNJOO 2.98 4.34 45.6% Buy 1,594 1.25 43.5 46.3 6.9 6.4 7.3 8.3 3.98 -25.1 2.80 6.4 -22.8 CHINHIN 1.10 1.39 26.4% Buy 612 0.93 11.4 11.1 9.6 9.9 5.8 5.1 1.49 -26.2 1.00 10.6 -9.1 CSCSTEL 1.34 1.70 26.9% Buy 495 0.87 17.4 17.9 7.7 7.5 7.0 7.1 2.05 -34.5 1.27 5.5 -13.0 ENGTEX 0.99 1.38 39.4% Buy 431 0.89 13.8 15.7 7.2 6.3 4.2 5.5 1.52 -34.9 0.96 3.1 -10.0 GADANG 0.83 1.34 61.4% Buy 549 1.35 14.0 16.6 5.9 5.0 3.6 3.6 1.37 -39.4 0.80 3.7 -25.2 GAMUDA 5.05 5.84 15.6% Buy 12,434 0.84 34.4 36.4 14.7 13.9 2.4 2.4 5.52 -8.5 4.58 10.3 1.8 IJM 2.70 2.96 9.6% Hold 9,795 1.40 13.7 18.6 19.7 14.5 3.5 3.5 3.60 -25.0 2.53 6.7 -11.5 BUILDING MATERIALS CONSTRUCTION KAB 0.24 0.38 59.6% Buy 8 na 31.4 37.3 0.7 0.6 4.3 5.1 0.33 -28.8 0.20 17.5 -21.7 PESONA 0.30 0.45 52.5% Buy 205 1.52 4.8 4.6 6.1 6.4 5.1 5.1 0.73 -59.6 0.30 0.0 -34.4 SENDAI 0.91 0.79 -13.2% Sell 711 1.49 9.9 8.7 9.2 10.4 1.1 1.1 1.39 -34.5 0.68 33.8 5.2 SUNCON 2.15 2.65 23.3% Hold 2,778 0.80 14.7 16.4 14.6 13.1 3.7 4.2 2.64 -18.6 1.86 15.6 -14.3 WCT 1.17 1.50 28.2% Sell 1,646 1.15 11.3 10.8 10.3 10.8 2.6 2.6 2.48 -52.7 1.13 3.5 -27.8 LITRAK 5.70 6.26 9.8% Hold 3,009 0.38 45.6 47.1 12.5 12.1 4.4 4.4 6.15 -7.3 5.40 5.6 2.7 CARLSBG 19.40 18.09 -6.8% Buy 5,968 0.71 87.8 91.8 22.1 21.1 4.4 4.6 21.00 -7.6 14.36 35.1 26.8 HEIM 20.82 21.64 3.9% Hold 6,290 0.47 93.0 101.6 22.4 20.5 3.6 3.8 23.04 -9.6 17.24 20.8 10.2 AEON 2.04 1.97 -3.4% Buy 2,864 0.33 7.5 8.9 27.1 22.9 2.2 2.5 2.52 -19.0 1.45 40.7 15.9 AMWAY 7.60 8.59 13.0% Buy 1,249 0.54 48.3 49.9 15.7 15.2 5.3 5.4 8.10 -6.2 6.97 9.0 4.0 F&N 35.00 33.74 -3.6% Buy 12,829 0.54 122.7 145.8 28.5 24.0 2.3 2.7 35.80 -2.2 23.40 49.6 29.6 CONSUMER Brewery Retail HUPSENG 1.10 1.25 13.6% Buy 880 0.41 5.7 5.9 19.3 18.6 5.5 5.5 1.28 -14.1 1.02 7.8 0.9 JOHOTIN 0.94 1.48 57.4% Buy 292 1.18 11.1 11.7 8.5 8.0 6.4 6.9 1.76 -46.6 0.90 4.4 -22.3 NESTLE 148.00 129.90 -12.2% Sell 34,706 0.58 322.2 360.2 45.9 41.1 2.0 2.2 163.00 -9.2 81.00 82.7 43.4 PADINI 4.55 4.67 2.6% Sell 2,993 0.83 28.0 30.4 16.3 15.0 2.7 2.9 5.50 -17.3 3.10 46.9 -13.8 -29.6 POHUAT 1.26 1.78 41.3% Buy 277 0.54 20.1 23.1 6.3 5.5 4.8 6.3 2.07 -39.1 1.15 9.6 QL 5.15 5.41 5.0% Hold 8,356 0.67 13.3 15.5 38.6 33.2 0.9 0.9 5.24 -1.7 3.54 45.5 18.4 SIGN 0.53 0.92 73.6% Buy 120 0.88 6.6 8.7 8.0 6.1 4.7 6.6 1.07 -50.5 0.48 10.4 -24.8 25.00 34.72 38.9% Buy 7,138 1.31 170.8 168.8 14.6 14.8 6.4 6.4 46.48 -46.2 22.62 10.5 -37.5 GENTING 8.86 11.58 30.7% Buy 33,948 1.37 55.1 61.8 16.1 14.3 1.8 1.8 9.92 -10.7 8.47 4.6 -2.9 GENM 5.08 6.68 31.5% Buy 28,746 1.49 27.6 32.0 18.4 15.9 2.4 2.6 6.28 -19.1 4.59 10.7 -8.4 2.08 3.22 54.8% Buy 2,802 0.56 19.9 26.0 10.5 8.0 7.7 8.7 2.84 -26.8 2.06 1.0 -7.1 CCMDBIO 2.91 3.40 16.8% Buy 812 0.85 16.2 17.7 17.9 16.4 1.6 1.7 3.05 -4.6 1.97 47.7 15.0 IHH 6.10 6.40 4.9% Sell 50,262 0.69 11.9 15.0 51.4 40.8 0.5 0.6 6.33 -3.6 5.42 12.5 4.1 KPJ 0.90 1.13 26.3% Buy 3,771 0.68 3.9 4.3 22.9 20.6 2.4 2.7 1.14 -21.5 0.84 6.5 -7.7 HARTA 6.00 7.80 30.0% Sell 19,872 0.97 12.6 14.4 47.7 41.6 1.3 1.4 6.64 -9.6 2.45 145.4 12.4 KOSSAN 7.05 9.73 38.0% Buy 4,508 0.48 37.4 42.1 18.8 16.8 2.7 3.0 8.79 -19.8 5.62 25.4 -13.1 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves SUPERMX 2.76 2.70 -2.2% Buy 1,810 0.57 20.0 22.6 13.8 12.2 1.9 2.2 3.01 -8.3 1.69 63.3 38.0 TOPGLOV 10.00 12.20 22.0% Buy 12,768 0.52 35.3 42.7 28.3 23.4 1.4 1.7 10.44 -4.2 4.56 119.3 25.2 KAREX 0.78 0.93 19.2% Sell 782 0.81 1.8 3.0 44.1 25.7 0.6 1.0 2.26 -65.5 0.75 4.0 -40.0 SCIENTX 7.70 10.01 30.0% Buy 3,765 0.95 67.5 79.4 11.4 9.7 2.7 3.4 9.85 -21.8 7.45 3.4 -11.1 SKPRES 1.46 2.00 37.0% Buy 1,825 0.93 10.4 13.1 14.1 11.2 3.5 4.5 2.35 -37.9 1.25 16.8 -36.0 ASTRO 1.91 2.90 51.8% Buy 9,959 0.96 12.4 13.8 15.3 13.8 6.5 6.5 2.94 -35.0 1.75 9.1 -27.9 MEDIA PRIMA 0.31 0.45 47.5% Sell 338 1.38 -3.8 -1.7 na na 0.0 0.0 1.20 -74.6 0.31 0.0 -59.9 STAR 1.07 1.20 12.1% Sell 790 1.16 6.2 5.9 17.2 18.0 8.4 8.4 2.22 -51.7 1.06 0.9 -35.2 INDUSTRIAL MEDIA
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.38 0.69 84.0% Buy 659 1.93 4.0 4.3 9.4 8.7 2.7 2.7 0.69 -45.7 0.34 11.9 -22.7 LCTITAN 6.21 7.60 22.4% Buy 14,115 na 56.3 60.9 11.0 10.2 4.0 4.3 6.53 -4.9 4.14 50.0 32.1 MHB 0.79 0.81 3.2% Sell 1,256 1.42 0.5 1.7 163.4 47.1 0.0 0.0 1.03 -23.8 0.63 25.6 -4.8 MISC 7.08 7.00 -1.1% Sell 31,604 1.05 50.1 53.8 14.1 13.2 4.2 4.2 7.90 -10.4 6.73 5.2 -4.6 PANTECH 0.58 0.78 34.5% Buy 431 1.43 6.2 6.9 9.3 8.4 4.8 5.3 0.74 -21.6 0.51 13.7 -10.1 PCHEM 8.46 9.00 6.4% Hold 67,680 0.89 52.5 54.0 16.1 15.7 3.1 3.3 8.61 -1.7 6.80 24.4 9.9 SAPNRG 0.72 0.84 16.7% Buy 4,314 2.84 -5.0 -1.7 na na 0.0 0.0 2.02 -64.4 0.40 82.3 1.4 SERBADK 3.40 4.15 22.1% Buy 4,993 na 27.7 31.6 12.3 10.8 2.6 2.9 3.68 -7.6 1.79 89.9 4.9 UMWOG 0.28 0.39 41.8% Buy 2,259 2.54 0.4 1.2 72.0 23.7 0.0 0.0 0.68 -59.5 0.22 27.9 -9.8 UZMA 1.38 1.57 13.8% Hold 442 1.26 12.9 13.9 10.7 9.9 0.0 0.0 1.90 -27.4 1.18 16.9 7.8 FGV 1.71 2.09 22.2% Buy 6,238 1.67 2.0 3.4 84.6 50.2 2.9 2.9 2.18 -21.6 1.51 13.2 1.2 IJMPLNT 2.37 2.23 -5.9% Sell 2,087 0.21 6.5 8.2 36.2 28.9 3.4 3.8 3.22 -26.4 2.19 8.2 -13.5 IOICORP 4.78 5.43 13.6% Buy 29,188 0.95 19.0 21.3 25.1 22.5 5.5 3.5 4.81 -0.6 4.21 13.7 7.9 KFIMA 1.46 1.89 29.5% Buy 411 0.73 13.7 13.8 10.7 10.6 6.2 6.2 1.96 -25.5 1.44 1.4 -7.0 KLK 25.52 27.76 8.8% Hold 27,178 0.65 107.6 116.0 23.7 22.0 2.1 2.2 25.98 -1.8 23.80 7.2 2.1 SIMEPLT 5.57 6.27 12.6% Hold 37,881 na 19.6 20.0 28.4 27.9 2.5 2.9 6.00 -7.2 4.58 21.6 -7.2 TSH 1.35 1.81 34.1% Buy 1,864 0.46 9.3 9.6 14.5 14.1 1.8 1.8 1.82 -25.8 1.33 1.5 -18.2 UMCCA 6.09 6.21 2.0% Sell 1,277 0.39 17.0 22.4 35.9 27.2 2.6 3.0 7.08 -14.0 5.97 2.0 -6.5 GLOMAC 0.50 0.40 -20.0% Sell 397 0.66 1.5 2.5 33.1 20.2 2.0 2.0 0.66 -23.6 0.45 11.1 -9.8 HUAYANG 0.47 0.58 24.7% Sell 164 0.94 0.7 3.4 70.1 13.7 1.1 1.1 1.14 -59.2 0.44 5.7 -23.8 IBRACO 0.62 0.80 29.0% Buy 308 na 7.2 10.7 8.6 5.8 4.8 6.5 0.93 -33.0 0.50 24.0 -23.9 IOIPG 1.54 1.92 24.7% Buy 8,479 0.97 14.9 14.7 10.4 10.5 3.9 3.9 2.22 -30.6 1.50 2.7 -16.8 MAHSING 1.02 1.59 55.9% Buy 2,476 0.88 11.8 11.3 8.6 9.1 6.4 6.4 1.64 -37.8 0.98 4.1 -29.7 SIMEPROP 1.39 1.51 8.6% Hold 9,453 na 7.5 7.5 18.5 18.6 2.9 2.2 1.78 -21.9 1.04 33.7 -21.9 SNTORIA 0.60 0.76 27.7% Buy 333 0.31 8.3 8.6 7.2 6.9 1.7 1.7 0.82 -27.3 0.56 6.3 -14.4 SPB 4.26 5.10 19.7% Hold 1,464 0.68 18.7 24.0 22.7 17.7 2.8 2.8 5.50 -22.5 4.14 2.9 -13.1 SPSETIA 3.05 3.73 22.3% Buy 11,864 1.07 19.8 19.4 15.4 15.7 3.9 3.9 4.38 -30.4 2.77 10.1 -23.8 SUNWAY 1.54 1.75 13.6% Hold 7,504 0.98 11.8 12.4 13.0 12.4 3.9 3.9 1.96 -21.4 1.46 5.7 -5.5 SUNREIT 1.60 1.87 16.9% Hold 4,712 1.05 10.0 10.7 16.0 15.0 6.3 6.7 1.90 -15.8 1.48 8.1 -15.8 CMMT 1.15 1.48 28.7% Buy 2,347 0.90 7.9 8.4 14.5 13.8 7.1 7.5 1.83 -37.2 0.98 17.3 -37.2 PLANTATIONS PROPERTY REIT POWER & UTILITIES MALAKOF 0.89 0.82 -7.9% Sell 4,396 1.04 6.7 7.2 13.4 12.3 7.9 7.9 1.27 -29.9 0.85 4.7 -9.2 PETDAG 27.50 24.08 -12.4% Sell 27,320 0.61 114.7 116.3 24.0 23.6 3.1 3.2 28.18 -2.4 20.81 32.1 14.4 PETGAS 18.22 19.46 6.8% Buy 36,052 0.88 99.3 100.0 18.4 18.2 3.8 3.8 19.80 -8.0 15.82 15.2 4.2 TENAGA 15.88 18.22 14.7% Buy 89,976 0.62 131.3 127.5 12.1 12.5 4.1 4.0 16.34 -2.8 13.72 15.7 4.1 YTLPOWR 0.95 1.16 22.8% Sell 7,493 0.94 8.5 8.7 11.2 10.8 5.3 5.3 1.50 -37.0 0.92 3.3 -26.7 TELECOMMUNICATIONS AXIATA 5.45 6.50 19.3% Buy 49,319 1.61 15.9 19.4 34.2 28.0 1.5 2.9 5.82 -6.4 4.54 20.0 -0.7 DIGI 4.49 5.15 14.7% Buy 34,910 0.93 19.6 20.2 22.9 22.2 4.4 4.5 5.19 -13.5 4.36 3.0 -12.0 MAXIS 5.89 5.95 1.0% Sell 46,004 1.05 24.9 24.8 23.7 23.8 3.3 3.3 6.60 -10.8 5.30 11.1 -2.0 TM 5.37 7.20 34.1% Buy 20,180 0.64 22.8 24.9 23.5 21.6 3.8 4.2 6.69 -19.7 4.90 9.6 -14.8 ELSOFT 2.47 3.30 33.6% Buy 680 0.95 13.1 15.0 18.8 16.5 3.7 4.3 2.95 -16.3 2.10 17.6 -8.5 IRIS 0.17 0.22 29.4% Buy 420 2.48 0.0 0.3 618.0 53.7 0.0 0.0 0.25 -30.6 0.14 25.9 -8.1 INARI 1.70 2.43 42.9% Buy 5,294 0.58 9.1 10.2 18.6 16.7 5.8 6.5 2.55 -33.2 1.32 29.1 -25.0 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 8.15 10.70 31.3% Buy 1,621 1.06 73.9 86.9 11.0 9.4 3.9 3.9 14.52 -43.9 8.08 0.9 -35.4 UNISEM 2.29 2.55 11.4% Hold 1,680 1.16 19.0 20.3 12.1 11.3 5.2 5.2 4.25 -46.1 2.25 1.8 -37.3 TRANSPORTATION Airlines AIRASIA 3.77 4.93 30.8% Hold 12,599 0.83 41.1 41.1 9.2 9.2 2.1 2.1 4.75 -20.6 2.89 30.4 12.5 AIRPORT 8.98 8.61 -4.1% Sell 14,900 1.12 18.0 18.8 50.0 47.8 1.4 1.1 9.45 -5.0 7.25 23.9 2.2 Freight & Tankers PTRANS 0.26 0.46 80.4% Buy 323 na 2.3 3.7 11.1 6.9 2.7 4.4 0.38 -33.2 0.22 14.5 -8.9 TNLOGIS 1.05 1.45 38.1% Buy 479 0.99 10.3 10.5 10.2 10.0 4.8 4.8 1.79 -41.5 0.99 6.1 -21.6 WPRTS 3.40 4.06 19.4% Buy 11,594 0.40 15.6 20.0 21.8 17.0 1.1 1.4 4.06 -16.3 3.12 9.0 -8.1 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) % upside Recom Market Cap. (S$m) Beta EPS (cent) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 29.63 30.50 2.9% Buy 75,967 1.13 212.3 246.0 14.0 12.0 2.2 2.4 30.0 -1.1 18.89 56.9 19.2 OCBC 13.70 14.30 4.4% Buy 57,300 1.18 109.5 123.3 12.5 11.1 6.7 7.7 13.8 -0.6 9.61 42.6 10.6 UOB 29.63 27.80 -6.2% Hold 49,211 1.17 216.8 244.1 13.7 13.7 2.7 2.7 29.9 -0.9 21.41 38.4 12.0 PLANTATIONS WILMAR 3.22 3.50 8.7% Buy 20,603 0.89 25.4 27.7 12.7 11.6 3.1 3.4 3.9 -16.8 2.97 8.4 4.2 IFAR 0.32 0.37 15.6% Buy 459 1.06 3.1 3.9 10.5 8.3 1.3 1.7 0.5 -37.9 0.32 1.6 -17.9 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
12. RESULTS UPDATE Tuesday , April 24, 2018 FBMKLCI: 1,880.36 Sector: Construction THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Gadang Holdings Berhad TP: RM1.34 (+61.4%) Last Traded: RM0.83 Expecting a Weaker 4QFY18 Ooi Beng Hooi Tel: +603-2167 9612 BUY benghooi@ta.com.my Results Review Gadang’s 9MFY18 net profit of RM71.9mn came in within expectations, accounting for 76.5% and 73.7% of ours and consensus’ full-year estimates. YoY, 9MFY18 net profit was 2.1% higher at RM71.9mn as revenue grew 8.8% to RM412.3mn. The improvement came mainly from the construction division, which recorded strong top line and PBT growths of 46.2% and 45.5% to RM271.8mn and RM68.4mn respectively. This was a result of commencement of new projects namely Package V206 of MRT2, TRX project and Cyberjaya hospital project, as well as recognition of variation orders from completed projects. However, this was offset by weaker performance of its property division, which saw the property revenue and PBT dropped 29.9% and 21.1% to RM123.4mn and RM38.6mn respectively, dragged by subdued property market. QoQ, net profit dropped 11.4% to RM25.1mn, dragged by weaker contribution from the construction division (revenue: -15.2%, PBT: 32.5%) and higher administrative expenses (+181.5%). On a positive note, its property revenue and PBT surged 82.7% and 85.3% to RM57.9mn and RM19.5mn respectively. The group turned from a net cash position of RM6.0mn in the immediate preceding quarter into a net debt position of RM17.8mn at the end of the reporting period. www.taonline.com.my Share Information Bloomberg Code Bursa Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) Meloria Sdn Bhd - 13.22 Sumber Raswira Sdn Bhd - 12.32 EPF - 6.90 Lembaga Tabung Haji - 5.06 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating Following the release of 3QFY18, adjustments were made to our revenue recognition and margin assumptions for various construction and property projects. All in, we reduce FY18 and FY19 earnings forecasts by 1.0% and 8.5% respectively. Outlook The outstanding construction order book stood at RM1.6bn as of end-February 2018, translated into 5.8x FY17 construction revenue. Its tender book stood at RM2.3bn as of March 2018, with bidding mainly for government’s infrastructure and building projects. For upcoming mega infrastructure projects, we see Gadang as a potential beneficiary of works packages of Pan Borneo Highway (Sabah) project and KL-Singapore High Speed Rail project. For its property division, its unbilled sales amount was almost unchanged from a quarter ago at RM134mn. It recorded property sales of RM143mn in 9MFY18 versus RM90mn in achieved in 1HFY18. FY18 FY19 (1.0) (8.5) 92.9 109.6 97.5 119.3 95.3 91.8 Buy (Maintained) Financial Indicators Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) FY18 net cash (0.5) (180.7) 6.4 0.9 1.0 FY19 net cash (5.8) (14.3) 7.6 1.0 0.8 % of FY 76.5 73.7 Within Within GADANG (8.3) (27.2) (32.0) (34.6) FBM KLCI 0.8 2.4 8.3 7.1 Scorecard vs. TA vs. Consensus Impact GADG MK GADANG 9261 Main Market 661.7 549.211 1.37/0.80 2253.5 53.4 1.35 Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 3
13. 24-Apr-18 Valuation In line with the de-rating of PE multiple among construction and property stocks , we lower the target PE multiples for Gadang’s construction and property divisions from 14x and 8x to 12x and 6x respectively. We also make adjustment to reflect the change in share base arising from exercises of ESOS. These lead to a lower revised target price of RM1.34, from RM1.69 previously. Maintain our BUY call on the stock. Table 1: Sum-of-Parts Valuation (RMmn) SOP valuation (RMmn) Remark Cons truction 579.1 12x CY18 net profit P roperty 298.5 6x CY18 net profit Utilities 55.5 12x CY18 net profit Wa rra nt convers ion 129.3 TOTAL 1062.3 E nla rg ed s ha re ba s e 791.0 Target price 1.34 Table 1: Earnings Summary (RMmn) FYE May FY16 FY17 FY18F FY19F FY20F R evenue 673.5 553.9 602.0 948.4 1154.5 Gros s profit 155.6 187.0 132.4 218.1 196.3 E BITDA 132.4 149.9 140.2 166.0 147.4 E BITDA ma rg in 19.7 27.1 23.3 17.5 12.8 E BIT (% ) 128.6 143.8 129.7 154.4 136.8 P BT 126.1 141.6 126.5 151.5 134.5 Net profit EPS * (s en) PER (x) 94.8 100.1 92.9 109.6 99.0 16.8 15.9 13.9 16.2 14.4 4.9 5.2 6.0 5.1 5.8 Gros s dividend* (s en) 2.8 3.0 3.0 3.0 3.0 Dividend yield (% ) 3.4 3.6 3.6 3.6 3.6 R OE (% ) 20.8 17.4 14.0 14.4 11.6 Page 2 of 3
14. 24-Apr-18 Table 3 : 3QFY18 Results Analysis (RMmn) FYE May 3Q17 R evenue 2Q18 3Q18 QoQ (% ) YoY (% ) 9MFY17 9MFY18 YoY (% ) 128.0 142.9 152.7 6.9 19.2 379.0 412.3 8.8 - Cons truction 70.8 105.5 89.5 (15.2) 26.5 186.0 271.8 46.2 - P roperty 51.8 31.7 57.9 82.7 11.7 176.0 123.4 (29.9) 5.5 5.6 5.2 (7.1) (3.9) 17.0 17.1 0.3 - Utility Cos t of S a les (77.6) (91.5) (97.1) 6.2 25.1 (256.1) (269.9) 5.4 Gros s profit 50.4 51.4 55.5 8.1 10.2 123.0 142.4 15.8 (2.4) 97.6 101.6 Opera ting profit 37.6 39.3 36.6 (6.7) F ina nce Cos ts (0.5) (1.1) (1.1) (4.2) P BT 37.0 38.3 35.8 (6.4) Core P BT 37.0 38.3 35.8 (6.4) 111.0 4.1 (1.7) (2.7) 56.5 (3.3) 95.9 99.3 3.5 (3.3) 95.9 99.3 3.5 - Cons truction 23.2 30.9 20.8 (32.5) (10.4) 47.0 68.4 45.5 - P roperty 16.9 10.5 19.5 85.3 15.4 49.5 38.6 (22.1) - Utility - Inves tment Income ta x expens e 0.9 (0.7) 0.9 (235.5) (2.2) 4.6 1.8 (59.6) (4.0) (2.5) (5.4) 121.0 35.3 (5.2) (9.6) 83.2 (9.7) (10.8) 10.6 0.7 (24.4) (27.2) 11.4 Net profit (10.7) 25.8 28.4 25.1 (11.4) (2.5) 70.4 71.9 2.1 Core net profit 25.8 28.4 25.1 (11.4) (2.5) 70.4 71.9 2.1 R eported E P S (s en)* 4.0 4.3 3.8 (11.6) (5.4) 10.9 10.9 (0.1) E P S (s en)* 4.0 4.3 3.8 (11.6) (5.4) 10.9 10.9 (0.1) Dividend (s en)* 0.0 0.0 0.0 na na 0.0 0.0 na % pts % pts Core P BT 28.9 26.8 23.5 (3.3) (5.5) 25.3 24.1 - Cons truction 32.8 Ma rg in (% ): % pts (1.2) 29.2 23.2 (6.0) (9.6) 25.3 25.2 (0.1) - P roperty 32.6 33.2 33.7 0.5 1.1 28.1 31.3 3.1 - Utility 16.8 (11.7) 17.1 4.6 1.2 25.4 27.4 1.9 Core Net P rofit 20.1 19.9 (3.4) (3.7) 18.6 17.4 (1.1) 4.6 1.2 25.4 27.4 1.9 16.5 E ffective ta x ra te 28.9 25.5 30.1 Note: *Adjusted for 1 into 2 share split and 1 for 4 share bonus issue in Nov 16 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, April 24, 2018, the analyst, Ooi Beng Hooi, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
15. NEW LISTING Tuesday , April 24, 2018 FBMKLCI: 1,880.36 Sector: Transportation THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Fair Value: RM0.74 Tri-Mode System (M) Berhad ACE Market Listing “Low-Risk” Model with Scale and Diversity Tan Kam Meng, CFA Tel: +603-2167 9605 Not Rated kmtan@ta.com.my Company Background Tri-Mode System (M) Berhad is principally involved in the provision of sea freight, container haulage, air freight, freight forwarding, warehousing and marine insurance services. IPO Structure Tri-Mode’s IPO entails a public issue of 43.2mn new shares, accounting for 26.0% of the group’s enlarged share capital. At the issue price of RM0.61/share, the IPO is expected to raise proceeds of RM26.4mn, of which 56.9% will be utilised for construction of headquarters and distribution hub, 19.0% for the repayment of bank borrowings, 1.9% for purchase of prime movers and trailers, and 8.9% retained as working capital. Investment Thesis 1. “Low-risk” model; 2. Expansion plans; and 3. Superior earnings growth. Earnings assumptions We project FY18-20 earnings to grow at average 18.7% premised on the following assumptions: 1. Purchase of 5 prime movers in both FY18 and FY19; 2. Commencing operations of new HQ and distribution hub in FY20; and 3. Stable GP margin of sea freight (20%) and container haulage (25%) for FY1820. www.taonline.com.my Share Information Listing Enlarged Share Capital (mn share) Market Cap @ RM0.61 (RM mn) Issue price (RM) Oversubscription rate Estimated free float (%) Tentative Listing Dates Closing of application period Balloting of Applicants Allotments of shares Listing ACE Market 166.0 101.3 0.61 28.0 26-Apr-18 30-Apr-18 4-May-18 11-May-18 Ratio & Analysis NAV per share (post IPO) (sen) Price to NAV(x) Proforma Gearing (x) 39.0 1.6 0.2 Utilisation of Proceeds Capital expenditure Repayment of bank borrowings Working capital % 58.8 19.0 8.9 Estimated listing expenses 13.3 Valuation At the IPO price of RM0.61share, Tri-Mode is priced at a trailing PE of 16.9. We value Tri-Mode at a fair value of RM0.74/share based on 14.0x CY19 EPS, which is on par with our sector target PE of 14x. Not rated Earnings Summary FYE 30 Dec (RMmn) 2016 2017 2018F 2019F 2020F Revenue 71.4 85.5 96.8 109.7 124.3 EBITDA 7.2 9.5 10.8 12.7 14.8 10.1 11.1 11.2 11.6 11.9 Pretax profit 6.2 8.0 9.8 11.7 13.3 Net profit 4.7 6.0 7.3 8.8 10.0 EBITDA margin (%) Core net profit 4.7 6.0 7.3 8.8 10.0 EPS (sen) 2.8 3.6 4.4 5.3 6.0 Core EPS (sen) 2.8 3.6 4.4 5.3 6.0 (%) 43.2 28.5 22.2 19.5 14.3 (x) 21.7 16.9 13.8 11.6 10.1 (sen) 0.0 0.0 1.6 2.0 2.1 Core EPS growth PER Net DPS Net div yield (%) 0.0 0.0 2.5 3.3 3.4 Core ROE (%) 16.2 18.9 10.8 12.0 12.7 Page 1 of 8
16. 24-Apr-18 Company Background Tri-Mode System (M) Berhad (Tri-Mode) is an integrated logistics service provider based at Port Klang, Malaysia. Established in 1991, the company has evolved from a pure freight forwarding company into a full-fledge logistics player, who is principally involved in the provision of sea freight, container haulage, air freight, freight forwarding, warehousing and marine insurance. Figure 1: Business Activities Source: Company, TA Securities Tri-Mode has fleet capacity of 99 prime movers, 505 trailers and 3 side-loaders. All the prime mover are equipped with GPS tracking system for the ease of operation and safety reasons. These haulage vehicles have an average age of less than 4 years and currently parked at a yard, measuring 4 acres, in Pulau Indah Industrial Park. Tri-Mode operates at 3 free trade commercial zone warehouses, located at Westport, Northport and the KLIA Cargo Complex for air-bound cargo. The warehouses have a total combined area of 11,804.3sf, which provide storage capacity of up to 49,658 m3 of cargoes. For 2017, Tri-Mode achieved a net profit of RM6.0mn, representing a YoY growth of 28.5%. In terms of revenue and gross profit breakdown, the group derived bulks of the earnings from sea freight and container haulage operations as illustrated in Figure 2 and 3 below. Figure2: Revenue Breakdown by Divisions Air freight, 5.4% Container haulage, 34.1% Source: Company, TA Securities Figure 3: Gross Profit Breakdown by Divisions Air freight, 9.0% Other, 1.4% Sea freight, 59.0% Other, 3.3% Container haulage, 36.8% Sea freight, 50.8% Source: Company, TA Securities Page 2 of 8
17. 24-Apr-18 Key Management & Substantial Shareholders The founders of Tri-Mode, Dato’ Hew Han Seng and his wife Datin Sam Choi Lai, will be the substantial shareholders and promoters post-IPO with their respective stake of 50.1% and 20.3% in the company. As promoters, a moratorium will be imposed on Dato’ Hew and Datin Sam’s shares in the following manner: 1. 2. 3. The moratorium applies to promoters’ entire shareholding for a period of 6 months from the date of admission to ACE market; Upon expiry of the first 6-months moratorium, there will be a second 6month moratorium imposed on promoters’ aggregate shareholding of 45%; Thereafter, the promoters may sell up to a maximum of 1/3 each year of the shares held under moratorium. Table 1: Moratorium Name Dato’ Hew Han Seng Datin Sam Choi Lai Total 1st moratorium mn shares % 83.1 50.1 33.7 20.3 116.8 70.4 2nd moratorium mn shares 49.3 29.7 25.4 15.3 74.7 45.0 Source: Company, TA Securities Tri-Mode’s day-to-day operations are at the helm of Dato’ Hew and Datin Sam. As a managing director, Dato’ Hew is instrumental in formalising Tri-Mode’s long term goals. Under his stewardship, Tri-Mode was accredited with Mercedes-Benz Driver’s League award in 2012 and 2016, SME 100 awards in 2014, A-rating Forwarder for 2016 and 3 Star rating for the program “SME Competitiveness Rating for Enhancement”. Both Dato’ Hew and Datin Sam have more than 25 years of relevant experience in the logistics industry. IPO Structure Tri-Mode’s IPO entails a public issue of 43,207,000 new shares, accounting for 26.0% of the group’s enlarged share capital. At the issue price of RM0.61/share, the IPO implies a market capitalisation of RM101.3mn. The allocation of shares is as detailed in Table 2. Table 2: Allocation of Shares Retail: Malaysian: Bumiputera Malaysian: Non-bumiputera Eligible persons Institutional: Private placement to selected investors MITI-approved bumiputera investors Total No. of Shares (mn shares) % of Enlarged Share Capital 4.15 4.15 4.20 2.5 2.5 2.5 24.90 5.81 43.21 15 3.5 26.0% Source: Company, TA Securities Of the expected total IPO proceeds of RM26.4mn, the bulk will be utilised for the construction of headquarters (56.9%) and repayment of bank borrowings (19.0%). The group will spend RM0.5mn (1.9%) to expand its fleet size and retain RM2.4mn (8.9%) as working capital (see Table 3). Page 3 of 8
18. 24-Apr-18 Table 3 : Utilisation of Proceeds Construction of HQ & Distribution hub Purchase of prime movers and trailers Repayment of bank borrowings Working capital Estimated listing expenses Amount (RM’mn) % of Gross Proceeds Timeframe 15.0 56.9 Within 30 months 0.5 1.9 Within 24 months 5.0 2.4 3.5 26.4 19.0 8.9 13.3 100.0 Within 6 months Within 12 months Within 3 months Source: Company, TA Securities Investment Thesis 1) “Low-risk” model In our opinion, Tri-Mode has a “low-risk” earnings model with scale and diversity. In the freight operation, the company does not overly relying on any particular industry hence it is less susceptible to non-systematic risks or industry-specific risks. In addition, the ability to pass on the escalation in cost of sales to customers would ensure stable profit margins. This can be justified by the group’s leaner cost structure where fixed cost accounted for only 16% of total operating cost for FY17. This low operating leverage structure explains the stability in PBT margin or why FY16 PBT margin rose to 8.7% (GP margin surged 3.4%-pts) from 6.7% in FY15 despite revenue contracted by 9.3% in FY16. Low concentration risk. Tri-Mode has established an extensive sea freight network since 1992 with agents located in 53 countries across Asia, Europe, North America, South America, Africa and Australasia. Also, it has favourable business relationship with major container carriers in the world, including Mitsui O.S.K lines, Yang Ming, China Shipping, CMA CGM, Hyundai Merchant Marine and Mediterranean Shipping Company, which allows the company to provide shipments to major ports worldwide. Based on FY17 accounts, the top five customers contributed approximately 31.3% of the group’s total revenue. The largest revenue contributor is Atama Logistics (Atama) who is also an associate company of Tri-Mode. Essentially, Tri-Mode carries out freight forwarding services in Malaysia mainly through Atama, who is a licenced freight forwarding agent in Malaysia. Atama has the obligation to monitor the movement of cargoes which is part of the compliance works as required under the rules and regulations of the Royal Malaysian Customs Department. If we omit the revenue contribution from related company, the top five customers would have contributed only 19.6% of the group’s total revenue in FY17. Table 4: % of revenue contribution from major customers Major customer Atama Recron Malaysia Issagami Gebruder Weiss Group Scientex Packaging Film Rockwool Malaysia FY15 18% 8% 5% 1% 2% 4% FY16 16% 9% 5% 1% 2% 4% FY17 14% 8% 4% 3% 3% 2% Length of relationship 9 yrs > 10 yrs 9 yrs > 10 yrs > 10 yrs > 10 yrs Source: Company, TA Securities In terms of revenue breakdown by industry, Figure 4 below illustrates Tri-Mode provides logistics services to customers in 16 different industries and it does not overly dependent on any single industry. Note that none of the industry contributed more than 10% of the group’s revenue, except the packaging industry. Page 4 of 8
19. 24-Apr-18 Figure 4 : Revenue Contribution by Industry Packaging materials, 11.6% Textile-related products, 8.0% Other, 36.3% Rubber-related products, 6.3% Chemical products, 5.7% Furniture & related products, 2.4% Unallocated revenue, 16.3% Building materials, 5.5% F&B, 3.0% Edible oils , 2.7% E&E, 2.2% Other: Automotive parts, timber products, minerals, metal ingots, paper products, resin, and machineries and parts. Unallocated: consignment secured through overseas’ agents. Source: Company, TA Securities Passing on variable costs. For sea freight operations, freight charges (38.4% of total cost of sale for sea freight division), cargo delivery (28.7%) and terminal handling charges (19.8%) are those key cost components, which make up more than 80% of cost of sales for the particular division. For the container haulage, the vehicle upkeep and maintenance cost (26.7%), fuel cost (29.3%) and driver’s salary (18.8%) are the major cost components, accounting for 74.8% of cost of sales. Note that all these costs can usually be passed down to the customers, thus the impact of cost escalation is immaterial to the group’s bottomline. 2) Expansion plans Construction of new distribution hub. Tri-Mode entered into 2 sale and purchase agreements with Central Spectrum to acquire 2 pieces of land at Pulau Indah Industrial Park, measuring 517,928 sf, for approximately RM25.4mn. The group intends to construct a new headquarters and distribution hub on the land. The construction is expected to commence in 3Q19, after the group obtains the land possession from the developer, and targeted for completion by 3Q20. The capex needed for the construction is estimated at about RM20mn, of which RM15mn will be financed via IPO proceeds. Figure 5: New HQ & Distribution Hub Source: Company, TA Securities Page 5 of 8
20. 24-Apr-18 The new HQ and distribution hub are expected to contribute positively to the group in terms of revenue expansion and cost savings . There will be a new warehouse, which will provide additional storage capacity by 50,000-55,000 sf to its existing capacity of 11,804.3sf. According to management, the company intends to install racking system in the warehouse to enhance the capacity further. Meanwhile, our channel check indicates that IKEA has also purchased a land just next to Tri-Mode. So, we do not discount the possibility that Tri-Mode would eventually join IKEA’s supply chain as a logistics service provider. Besides warehouse, the group will convert some of the land into parking yards and areas for new mechanical workshops. This would ease the congestion issue in TriMode’s parking yards. Currently, the parking yards (Yard 1 and Yard 2) have an aggregate land size of approximately 4 acres and this is insufficient if all the prime movers and trailers were to be stationed at the 2 yards. As such, management would allocate 7 acres land to expand its total parking space. The new HQ will contribute to some cost savings as the group is currently renting spaces used for document storage. The new HQ would have a storage capacity of 25,000sf - 30,000sf, which is much higher than its existing storage of 17,737sf. All in, we believe the cost savings would help to offset some 50% of the additional depreciation charges from the new HQ and warehouse. Purchase of prime movers and trailers. As part of the expansion plan, the company plans to purchase additional 10 units of prime movers and 50 units of trailers within the next two years. This will cost approximately RM4.75mn and the company will utilise RM0.5mn IPO proceeds to part finance the purchase. The proposed purchase of prime movers and trailers will increase Tri-Mode’s fleet size to 110 prime movers (from 99 currently) and 555 trailers (from 505 currently). As at Dec-17, the average utilisation rate for the prime movers stood at average 88.1%. We believe the new purchase is timely to expand the trucking capacity further as demand for logistics service is expected to pick up when TriMode’s new distribution hub is completed by 2020. E-commerce opportunity. According to management, Tri-Mode aims to venture into the e-commence logistics industry in Malaysia by providing courier services for the goods purchased by customers from outside Malaysia through selected e-commerce platforms operated by third parties to further expand its scope of logistics activities. Currently, there is no any other logistics service providers in Malaysia that operates similar e-commerce logistics platform from point-of-origin to final destination in Malaysia. We are optimistic about the ecommerce prospect after learning that its principal office in Taiwan is handling close to 20,000 tonnes of cargoes a week. However, we do not expect significant contribution from this new venture in the near term until it achieves the economies of scale. 3) Superior earnings growth Average FY18-20 earnings growth > 18.0%. Looking forward, we expect FY18-19 earnings to grow by 22.2% and 19.5% respectively on the back of additional revenue contribution from the haulage division. For FY20, we expect earnings growth of 14.3% underpinned by maiden contribution from the new warehouse. As far as balance sheet is concerned, the listing exercise would reduce Tri-Mode’s net gearing considerably from 0.61x to 0.18x. We expect the net gearing to drop Page 6 of 8
21. 24-Apr-18 to 0 .14x and 0.11x in FY18 and FY19 respectively as capex is expected to be minimal at RM2-3mn during these years. FY20 net gearing is expected to surge to 0.19x in FY20 due to increase in capex for the construction of new HQ and distribution hub. Given the strong financial position, the company has adopted a dividend policy to pay out at least 30% of earnings as dividends. Risk Shortage of drivers. Although Tri-Mode has been able to pass on the increase in driver salary, it is hard to mitigate the problem of driver shortage in the market currently. We foresee the problem to get out of hand in the near future due to: 1) aging lorry drivers in Malaysia; and 2) the booming e-commerce and e-car hailing are expected to worsen the situation as competition will intensify in hiring drivers. Financials Tri-Mode achieved a profit of RM3.3mn in FY15 and RM4.7mn in FY16, representing a growth of 43.2% YoY for FY16. The significant growth in profit, despite revenue declined by 9.3% YoY, can be attributed to the drop in sea freight rate by ship liners, lower depreciation expense coupled with lower fuel costs, which more than offset the decline in sea freight volume and lower freight charges in FY16. For FY17, the group achieved a profit of RM6.0mn (28.4% growth) on the back of 19.8% growth in revenue to RM85.5mn. The surge in revenue and profit was mainly due to increase in cargo volume by sea and air. GP margin declined slightly to 23% in FY17 from 25% in FY16 mainly attributable to higher sea freight rate offered by ship liners as well as higher fuel costs for the container haulage division. Looking forward, we project FY18-20 earnings to grow at average 18.7% premised on the following assumptions: 1. Purchase of 5 prime movers in FY18 and FY19; 2. Commencing operations of new HQ and distribution hub in FY20; 3. Stable GP margin of sea freight (20%) and container haulage (25%) for FY18-20. Figure 6: Revenue Breakdown Figure 7: Net profit and margin RM'mn 140 RM'mn 12.00 120 10.00 100 8.00 80 % 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 6.00 60 4.00 40 2.00 20 0.00 0 2015 2016 2017 2018F 2019F Sea freight Container haulage Air freight Source: Company, TA Securities 2020F Other 2015 2016 2017 Net profit (LHS) 2018F 2019F 2020F Net profit margin (RHS) Source: Company, TA Securities Valuation At the IPO price of RM0.61share, Tri-Mode is priced at a trailing PE of 16.9x. We value Tri-Mode at a fair value of RM0.74/share based on 14.0x CY19 EPS, which is on par with our sector target PE of 14x. Despite its relatively small market capitalisation, we believe the 14x valuation is justifiable given its relatively strong earnings growth of average 18.7% over the next three year. As comparison, TriPage 7 of 8
22. 24-Apr-18 Mode ’s FY18-19 earnings growth is expected to be stronger than the sector. Meanwhile, its dividend yield is comparable with its peers (see Table 6). Not rated. Table 5: Earnings Summary (RMmn) FYE 30 Dec (RMmn) 2016 2017 2018F 2019F 2020F R evenue 71.4 85.5 96.8 109.7 124.3 E B ITDA 7.2 9.5 10.8 12.7 14.8 10.1 11.1 11.2 11.6 11.9 P reta x profit 6.2 8.0 9.8 11.7 13.3 Net profit 4.7 6.0 7.3 8.8 10.0 Core net profit 4.7 6.0 7.3 8.8 10.0 2.8 3.6 4.4 5.3 6.0 E B ITDA ma rg in (% ) EPS (s en) Core E P S (s en) 2.8 3.6 4.4 5.3 6.0 Core E P S g rowth (% ) 43.2 28.5 22.2 19.5 14.3 PER (x) 21.7 16.9 13.8 11.6 10.1 Net DP S (s en) 0.0 0.0 1.6 2.0 2.1 Net div yield (% ) 0.0 0.0 2.5 3.3 3.4 Core R OE (% ) 16.2 18.9 10.8 12.0 12.7 Table 6: Peers Comparison Company Freight Management Tasco Century Logistics Xin Hwa Harbour-Link Tiong Nam Average Tri-Mode Share price Market cap (RM) (RM'mn) 1.13 210.3 1.86 372.0 0.73 287.8 1.11 239.8 0.70 280.3 1.05 483.4 0.61 101.3 EPS growth (%) FY18 FY19 na na 19.3 21.8 7.7 9.5 na na -21.3 20.2 -11.6 18.6 -1.5 17.5 22.2 19.5 FY17 10.0 11.9 18.7 19.3 6.8 8.5 12.5 16.9 PE (x) FY18 na 9.9 17.4 na 8.6 9.6 11.4 13.8 FY19 na 8.2 15.9 na 7.1 8.1 9.8 11.6 Dividend yield (x) FY18 FY19 na na na na 1.9 2.2 na na 3.1 3.3 2.7 3.4 2.6 3.0 2.5 3.3 * Based on consensus data Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, April 24, 2018, the analyst, Tan Kam Meng, CFA, 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 8 of 8
23. Tuesday , 24 April, 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 W at ch 2. D ai l y Mon e y F low of T e ch n i c a l St o ck W at ch 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
24. Technical View Tuesday , April 24, 2018 S REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Watch Malaysia FBM KLCI: 1,880.36 (-7.39, -0.39%) Chartist: Stephen Soo Close Name 23/Apr FBMKLCI 1880.36 Tel: +603-2167 9607 Change High Low (7.39) 1,891.59 1,878.37 Bollinger Bands RSI stsoo@ta.com.my Moving Averages www.taonline.com.my DMI MACD DMI MACD DMI MACD Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change 1,825.55 1,862.12 1,898.69 61.10 1,874.42 1,860.95 1,855.80 30.95 17.80 15.15 13.15 9.15 5.45 3.70 BUY BUY - - AFFIN 2.53 0.01 2.54 2.51 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 0.02 BUY BUY - - ABMB 4.36 -0.12 4.44 4.36 4.11 4.30 4.48 60.67 4.35 4.29 4.22 21.76 8.28 21.31 13.48 0.05 0.04 0.02 BUY BUY - - AMBANK 3.86 -0.02 3.90 3.85 3.68 3.90 4.12 43.78 3.93 3.97 4.12 15.28 27.54 26.89 (12.26) -0.05 -0.07 0.02 SELL BUY - - AXIATA 5.45 0.00 5.47 5.35 5.23 5.38 5.54 55.01 5.38 5.39 5.44 16.30 15.60 20.88 0.70 0.00 -0.02 0.02 BUY BUY - - CIMB 7.24 -0.06 7.34 7.22 6.95 7.17 7.39 59.63 7.21 7.20 7.17 19.88 23.96 26.80 (4.08) 0.04 0.02 0.02 SELL BUY - - DIGI 4.49 -0.04 4.58 4.45 4.40 4.56 4.72 45.33 4.55 4.60 4.69 20.36 14.95 25.49 5.41 -0.03 -0.05 0.02 BUY BUY - - GAMUDA 5.05 -0.06 5.14 5.05 4.96 5.11 5.26 51.14 5.13 5.09 5.05 20.63 19.59 13.51 1.04 0.02 0.02 0.00 BUY BUY BUY - GENTING 8.86 0.00 8.90 8.84 8.64 8.88 9.12 46.84 8.98 8.91 8.91 12.76 21.23 26.10 (8.47) 0.02 0.00 0.02 SELL BUY - - GENM 5.08 -0.09 5.19 5.07 4.68 4.99 5.29 54.78 5.09 5.07 5.12 25.23 14.75 23.08 10.48 0.01 -0.03 0.04 BUY BUY - - IHH 6.10 -0.02 6.13 6.07 5.96 6.05 6.15 56.11 6.08 6.06 6.05 13.49 11.84 11.13 1.65 0.02 0.01 0.01 BUY BUY - - IOICORP 4.78 0.00 4.80 4.72 4.69 4.76 4.84 56.89 4.77 4.74 4.70 12.16 19.69 18.26 (7.54) 0.02 0.02 0.00 SELL BUY - - MALAKOFF 0.89 -0.01 0.90 0.89 0.86 0.89 0.92 51.22 0.90 0.88 0.90 18.57 15.68 17.80 2.90 -0.01 -0.02 0.02 BUY BUY - - MAXIS 5.89 0.02 5.89 5.75 5.52 5.76 6.00 54.29 5.84 5.78 5.85 15.50 20.06 23.47 (4.56) 0.01 -0.02 0.02 SELL BUY - - 10.62 -0.10 10.72 10.60 10.38 10.54 10.71 66.37 10.58 10.49 10.41 24.78 12.35 18.99 12.43 0.07 0.06 0.01 BUY BUY - - MBSB 1.13 -0.02 1.15 1.13 1.05 1.12 1.19 51.50 1.15 1.14 1.16 22.13 15.51 21.64 6.61 0.00 0.00 0.01 BUY BUY - - RHBBANK 5.36 -0.02 5.47 5.34 5.10 5.28 5.45 55.30 5.33 5.30 5.30 16.18 20.28 21.22 (4.10) 0.03 0.01 0.02 SELL BUY - - SIME 2.78 -0.02 2.80 2.76 2.49 2.69 2.88 63.39 2.77 2.67 2.68 23.59 18.01 17.99 5.57 0.04 0.03 0.02 BUY BUY - - 15.88 -0.04 15.98 15.84 15.62 15.91 16.20 53.37 15.91 15.84 15.77 15.50 13.02 15.43 2.48 0.05 0.05 (0.00) BUY SELL - SELL TM 5.37 -0.13 5.58 5.37 4.99 5.36 5.74 50.82 5.51 5.43 5.62 22.06 18.63 17.37 3.43 -0.01 -0.05 0.04 BUY BUY - - WPRTS 3.40 0.00 3.43 3.39 3.30 3.46 3.61 44.67 3.40 3.50 3.55 16.73 16.11 28.63 0.62 -0.04 -0.04 0.00 BUY BUY - - AIRASIA 3.77 -0.03 3.80 3.76 3.77 3.99 4.20 36.79 3.90 4.08 4.14 11.14 31.51 29.69 (20.36) -0.08 -0.06 (0.02) SELL SELL - - AIRASIA X 0.38 -0.01 0.39 0.38 0.35 0.38 0.41 48.91 0.39 0.39 0.40 23.44 24.90 17.19 (1.46) 0.00 0.00 0.00 SELL BUY SELL - ARMADA 0.83 -0.01 0.84 0.82 0.78 0.85 0.93 46.90 0.87 0.85 0.85 23.33 28.98 18.37 (5.64) 0.01 0.01 0.00 SELL BUY - - DIALOG 3.10 -0.05 3.15 3.09 2.84 3.05 3.26 64.18 3.13 2.96 2.84 22.15 13.75 29.94 8.40 0.09 0.09 (0.00) BUY SELL - - DNEX 0.38 -0.02 0.40 0.38 0.35 0.39 0.43 46.80 0.40 0.40 0.42 19.34 23.81 16.83 (4.47) -0.01 -0.01 0.00 SELL BUY - - ECO WORLD 1.11 -0.01 1.12 1.09 0.96 1.05 1.14 56.80 1.09 1.06 1.16 25.69 13.95 36.93 11.74 -0.01 -0.02 0.02 BUY BUY - - EKOVEST 0.81 -0.03 0.83 0.80 0.78 0.90 1.01 35.78 0.87 0.92 0.95 16.69 29.78 17.05 (13.09) -0.03 -0.03 (0.00) SELL SELL - - FGV 1.71 -0.01 1.75 1.69 1.60 1.76 1.91 42.66 1.82 1.77 1.83 18.01 18.76 29.37 (0.75) 0.00 -0.01 0.00 SELL BUY SELL - GADANG 0.83 -0.02 0.85 0.83 0.82 0.88 0.95 35.81 0.88 0.90 0.96 17.08 26.99 30.29 (9.90) -0.03 -0.03 0.00 SELL BUY - - HIAP TECK 0.38 -0.02 0.40 0.38 0.37 0.41 0.44 41.85 0.41 0.42 0.45 16.01 27.37 25.10 (11.36) -0.01 -0.01 0.00 SELL BUY - - HIBISCUS 0.86 -0.04 0.91 0.86 0.72 0.84 0.96 53.96 0.88 0.85 0.88 26.15 21.68 14.66 4.47 0.01 0.00 0.01 BUY BUY - - KUB 0.40 -0.02 0.42 0.39 0.40 0.43 0.46 41.73 0.43 0.44 0.45 21.10 28.17 11.22 (7.07) -0.01 -0.01 0.00 SELL BUY - - MALTON 0.80 -0.02 0.81 0.80 0.77 0.82 0.87 44.09 0.83 0.84 0.87 17.97 21.67 9.64 (3.70) -0.01 -0.02 0.00 SELL BUY - - MUDAJAYA 0.66 0.00 0.66 0.65 0.63 0.69 0.75 37.76 0.68 0.71 0.77 26.15 41.53 26.49 (15.38) -0.02 -0.03 0.01 SELL BUY - - MRCB 1.01 -0.02 1.03 1.00 0.90 1.00 1.09 52.21 1.03 1.00 1.04 22.29 20.18 14.77 2.11 0.00 -0.01 0.01 BUY BUY - - SAPURA ENERGY 0.72 -0.04 0.76 0.71 0.40 0.61 0.82 65.30 0.69 0.57 0.60 32.94 16.91 28.50 16.03 0.05 0.03 0.03 BUY BUY - - SUNCON 2.15 -0.04 2.19 2.15 1.92 2.11 2.30 53.46 2.19 2.11 2.21 24.11 19.10 24.10 5.01 0.01 -0.02 0.02 BUY BUY - - UEMS 0.91 -0.01 0.93 0.91 0.90 0.96 1.02 36.15 0.94 0.97 1.02 9.97 28.60 36.93 (18.63) -0.03 -0.02 (0.00) SELL SELL - - UMWOG 0.28 -0.02 0.29 0.27 0.24 0.29 0.34 47.44 0.29 0.30 0.31 24.11 23.92 14.93 0.18 0.00 -0.01 0.00 BUY BUY - - WASEONG 1.46 -0.02 1.49 1.44 1.28 1.43 1.58 52.47 1.43 1.48 1.50 22.67 24.66 23.51 (1.99) -0.02 -0.03 0.01 SELL BUY - - WCT 1.17 0.01 1.18 1.15 1.10 1.22 1.34 32.04 1.19 1.26 1.37 11.68 27.63 36.38 (15.96) -0.06 -0.06 0.01 SELL BUY - - MAYBANK TENAGA 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
25. 24-Apr-18 Technical Comments : Sell Rally CIMB & Maybank Any strength on CIMB shares towards the 27/2/18 peak (RM7.39) is expected to attract profit-taking interest due to toppish chart pattern, while stronger supports are near the lower Bollinger band (RM6.95), 100 and 200-day moving averages at RM6.87 and RM6.65 respectively. Similarly, Maybank should meet profit-taking resistance on any further strength towards the 123.6%FP (RM10.84), while key chart supports are at RM10.24, and the 100-day moving average (RM10.05). CIMB RM7.24 (-0.06) Z BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 7.39 7.17 6.95 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal SELL Signal Change Recent Signal BUY Signal Change MAYBANK RM10.62 (-0.10) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 10.71 10.55 10.38 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change 7.23 7.20 7.17 RM RM RM DAILY MACD 10.60 10.50 10.42 BUY Page 2 of 4
26. 24-Apr-18 Daily Money Flow of Technical Stock Watch Malaysia Chartist : Stephen Soo Tel: +603-2167 9607 Total Money Flow (RM'mn) 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 37 38 39 39 40 41 stsoo@ta.com.my www.taonline.com.my CLOSING PRICE 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr (A) Total 5D MF Prv. Chg FBMKLCI (1.9) 9.6 (33.4) (3.1) (9.6) (38.3) 30.3 (6.5) 1,879 1,880 1,879 1,895 1,888 (7.43) IN AFFIN ABMB AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA DIALOG DNEX ECO WORLD EKOVEST FGV GADANG HIAP TECK HIBISCUS KUB MALTON MUDAJAYA MRCB SAPURA ENERGY SUNCON UEMS UMWOG WASEONG WCT 0.0 0.6 (0.1) (0.0) 0.9 (1.5) 2.2 0.1 2.1 (0.3) 2.6 0.0 0.1 (4.4) (0.3) (0.0) 0.3 (2.1) (0.1) 0.0 0.0 0.1 (0.5) (0.1) (0.1) (0.1) (0.1) (0.1) 0.1 (0.1) 0.3 (0.0) (0.0) (0.0) (0.3) (1.0) 0.0 (0.2) (0.5) 0.0 (0.1) 0.0 0.3 (0.1) 4.1 (0.6) (5.5) 0.8 (0.1) 23.8 0.1 0.5 0.0 (0.3) (4.5) 0.2 0.7 (0.1) 1.2 (0.1) (1.0) 0.0 1.0 0.1 0.3 0.0 (0.0) 0.0 0.4 0.1 (0.0) (0.2) 0.0 (0.0) 0.0 (0.5) (1.1) 0.3 (0.2) (1.3) (0.0) (0.1) 0.0 0.3 0.0 (0.1) 1.4 2.0 (3.0) 2.5 0.3 (1.2) 0.1 (0.2) 0.9 (36.2) (0.3) 0.1 (1.0) (6.0) 0.0 (0.2) (2.3) (0.2) (0.9) (0.9) 0.0 0.0 0.1 (0.3) 0.0 (0.0) (0.4) 0.0 0.1 (0.0) (0.1) (0.4) 0.2 (0.1) (1.0) (0.1) (0.2) (0.1) 0.1 (0.0) 0.5 (4.4) (5.9) (1.6) 1.2 4.4 2.7 0.2 (0.1) 0.4 (1.4) 0.3 (0.7) 0.7 (3.0) (1.4) (0.3) (0.3) 0.3 0.0 (4.2) (0.1) 0.0 (0.1) (0.6) (0.0) 0.0 (0.8) (0.0) 0.0 (0.0) (0.4) (5.1) 0.0 (0.4) 0.1 0.3 (0.2) (0.0) (0.6) 0.3 (1.0) (4.5) (2.1) (1.3) (0.0) 0.3 (1.2) (1.1) 0.1 0.0 (2.8) 0.1 0.1 (0.6) 4.1 (0.8) (0.2) (0.3) (0.5) (0.2) 2.3 (0.0) 0.0 (0.0) (0.3) 0.0 (0.0) 0.1 (0.0) 0.1 (0.0) (0.4) (2.4) (0.0) (0.1) (0.5) 0.2 (0.1) (0.0) 0.6 0.1 3.5 (7.3) (13.0) (2.9) 3.6 30.9 0.0 2.4 (0.1) 1.1 (49.3) (0.0) 0.2 (0.7) (5.7) (2.4) (1.6) (2.8) 0.7 (1.5) (2.7) (0.1) 0.0 (0.0) (0.9) 0.2 (0.2) (1.1) 0.0 0.1 (0.0) (1.6) (9.9) 0.5 (1.0) (3.1) 0.4 (0.7) (0.1) (0.3) (0.0) 0.6 (5.8) (8.0) 1.4 (1.3) 4.0 3.9 0.1 0.1 (0.5) 34.9 0.5 (0.8) 1.7 3.0 (1.4) (0.2) 2.0 0.6 0.9 (3.3) (0.1) (0.0) (0.2) (0.2) (0.0) 0.0 (0.5) (0.0) (0.0) (0.0) (0.4) (4.7) (0.2) (0.3) 1.1 0.4 0.1 0.1 (0.7) 0.3 (1.5) (0.1) 3.9 0.3 (1.2) (4.1) (3.9) (1.3) 0.1 (0.4) (1.5) (0.2) 0.8 (1.3) 7.1 0.6 0.2 (0.1) (0.8) (0.3) 6.5 0.0 (0.0) 0.0 0.3 0.0 (0.0) 0.9 (0.0) 0.1 (0.0) 0.0 2.7 (0.0) 0.4 (0.6) (0.1) 0.0 2.49 4.32 4.00 5.43 7.24 4.54 5.12 8.91 5.30 6.10 4.79 0.91 5.80 10.60 1.15 5.38 2.80 15.94 5.63 3.34 0.00 0.39 0.92 3.13 0.42 1.10 0.88 1.87 0.89 0.40 0.92 0.43 0.83 0.71 1.04 0.77 2.17 0.95 0.32 1.44 1.19 2.52 4.30 3.95 5.44 7.30 4.64 5.10 9.00 5.12 6.09 4.77 0.91 5.79 10.62 1.16 5.40 2.78 15.94 5.50 3.34 3.88 0.40 0.91 3.09 0.41 1.11 0.87 1.84 0.89 0.41 0.90 0.43 0.83 0.71 1.03 0.77 2.19 0.94 0.30 1.38 1.19 2.52 4.40 3.90 5.38 7.30 4.57 5.13 9.07 5.17 6.08 4.79 0.90 5.82 10.60 1.16 5.38 2.79 15.92 5.40 3.40 3.89 0.40 0.86 3.12 0.40 1.10 0.86 1.81 0.87 0.41 0.88 0.43 0.83 0.70 1.03 0.73 2.18 0.93 0.30 1.35 1.17 2.51 4.48 3.92 5.45 7.31 4.65 5.17 9.05 5.14 6.10 4.79 0.90 5.88 10.68 1.16 5.41 2.81 16.00 5.58 3.53 3.78 0.39 0.86 3.12 0.41 1.11 0.86 1.78 0.87 0.41 0.94 0.42 0.82 0.69 1.04 0.79 2.19 0.93 0.30 1.48 1.17 2.52 4.48 3.88 5.45 7.30 4.53 5.11 8.86 5.17 6.12 4.78 0.90 5.87 10.72 1.15 5.38 2.80 15.92 5.50 3.40 3.80 0.39 0.84 3.15 0.40 1.12 0.83 1.72 0.85 0.40 0.90 0.42 0.82 0.66 1.03 0.76 2.19 0.92 0.29 1.48 1.16 0.01 0.00 (0.04) 0.00 (0.01) (0.12) (0.06) (0.19) 0.03 0.02 (0.01) (0.01) (0.01) 0.04 (0.01) (0.03) (0.01) (0.08) (0.08) (0.13) 0.02 (0.01) (0.02) 0.03 (0.01) 0.01 (0.03) (0.06) (0.02) (0.01) (0.04) (0.01) 0.00 (0.03) (0.01) (0.04) 0.00 (0.01) (0.01) 0.00 (0.01) OUT OUT IN OUT OUT OUT IN OUT OUT OUT OUT IN OUT IN IN IN IN IN OUT OUT IN OUT IN IN OUT OUT OUT IN IN IN IN OUT IN OUT OUT OUT OUT IN IN IN IN Name (B) Cur. Chg 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 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
27. 24-Apr-18 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo No Name 16-Apr Tel: +603-2167 9607 Total Money Flow (RM'mn) 17-Apr 18-Apr 19-Apr Total stsoo@ta.com.my 20-Apr 5D MF (A) Prv. Chg (B) Cur. Chg 16-Apr 17-Apr www.taonline.com.my CLOSING PRICE 18-Apr 19-Apr (A+B) 20-Apr Chg DMF FBMKLCI (1.9) 9.6 (33.4) (3.1) (9.6) (38.3) 30.3 (6.5) 1,879 1,880 1,879 1,895 1,888 (7.43) IN 1 MAYBANK (4.4) (4.5) (36.2) (1.4) (2.8) (49.3) 34.9 (1.5) 10.60 10.62 10.60 10.68 10.72 0.04 IN 2 PBBANK (1.4) (2.9) 1.8 (1.0) 2.0 (1.6) (2.8) 3.0 24.04 23.98 24.00 24.24 24.20 (0.04) IN 3 TENAGA (2.1) 1.2 (6.0) (3.0) 4.1 (5.7) 3.0 7.1 15.94 15.94 15.92 16.00 15.92 (0.08) IN 4 CIMB 0.9 (0.6) 1.4 (4.4) (4.5) (7.3) (5.8) (0.1) 7.24 7.30 7.30 7.31 7.30 (0.01) OUT 5 PCHEM 1.0 (8.7) 1.7 (2.1) (2.5) (10.6) (3.8) (0.4) 8.45 8.51 8.45 8.48 8.48 0.00 OUT 6 IHH (0.3) 0.1 (1.2) 2.7 (1.2) 0.0 3.9 (3.9) 6.10 6.09 6.08 6.10 6.12 0.02 OUT 7 AXIATA (0.0) 4.1 (0.1) 0.5 (1.0) 3.5 0.6 (1.5) 5.43 5.44 5.38 5.45 5.45 0.00 OUT 8 MAXIS 0.1 (0.3) 0.9 0.4 0.0 1.1 (0.5) (0.4) 5.80 5.79 5.82 5.88 5.87 (0.01) OUT 9 HLBANK 0.2 0.2 0.1 0.5 0.3 1.4 0.4 (0.2) 18.88 18.86 19.26 19.60 19.40 (0.20) IN 10 SIME PLT (0.9) (0.8) 0.2 0.3 (0.6) (1.8) 0.1 (0.9) 5.64 5.60 5.60 5.60 5.52 (0.08) OUT 11 DIGI (1.5) (5.5) 2.0 (5.9) (2.1) (13.0) (8.0) 3.9 4.54 4.64 4.57 4.65 4.53 (0.12) OUT 12 NESTLE 0.6 (1.2) (0.3) 1.0 (1.6) (1.6) 1.3 (2.6) 149.10 148.00 148.00 148.30 148.00 (0.30) OUT 13 PETGAS 0.3 (0.5) 0.1 0.2 2.3 2.4 0.0 2.1 18.00 18.54 18.52 18.58 18.60 0.02 IN 14 GENTING 0.1 (0.1) 2.5 1.2 (0.0) 3.6 (1.3) (1.2) 8.91 9.00 9.07 9.05 8.86 (0.19) OUT 15 MISC 0.1 0.3 (0.1) 0.4 0.3 0.9 0.5 (0.1) 7.04 6.99 6.99 7.13 7.20 0.07 IN 16 IOI CORP 2.6 0.5 0.1 0.2 (1.1) 2.4 0.1 (1.3) 4.79 4.77 4.79 4.79 4.78 (0.01) OUT 17 GENM 2.1 23.8 0.3 4.4 0.3 30.9 4.0 (4.1) 5.30 5.12 5.17 5.14 5.17 0.03 OUT 18 KLK (0.0) 3.6 0.3 0.3 0.0 4.1 0.0 (0.2) 25.58 25.54 25.50 25.54 25.50 (0.04) OUT 19 PETDAG 0.4 (0.2) 0.6 1.1 (0.8) 1.1 0.6 (1.9) 26.08 26.78 26.86 27.70 27.60 (0.10) OUT 20 HAP SENG 0.0 (1.1) 0.1 0.0 (0.1) (1.0) (0.1) (0.1) 9.75 9.75 9.74 9.75 9.73 (0.02) OUT 21 HLFG 0.1 0.1 0.1 0.2 0.1 0.7 0.1 (0.2) 19.28 19.26 19.20 19.60 19.64 0.04 OUT 22 PPB (1.2) 0.7 (0.5) 0.5 (0.2) (0.7) 0.9 (0.6) 18.60 18.64 18.62 19.10 19.02 (0.08) IN 23 TM (0.1) (0.1) 0.0 (1.4) (0.8) (2.4) (1.4) 0.6 5.63 5.50 5.40 5.58 5.50 (0.08) OUT 24 RHBBANK (0.0) 0.7 0.1 (0.7) 0.1 0.2 (0.8) 0.8 5.38 5.40 5.38 5.41 5.38 (0.03) IN 25 PMETAL 0.8 1.8 (0.3) 2.4 0.8 5.4 2.7 (1.6) 4.83 4.99 5.03 5.23 5.11 (0.12) IN 26 SIME 0.3 (0.1) (1.0) 0.7 (0.6) (0.7) 1.7 (1.3) 2.80 2.78 2.79 2.81 2.80 (0.01) IN 27 YTLCORP 0.1 (0.0) (0.0) (0.6) 0.1 (0.5) (0.5) 0.6 1.45 1.43 1.44 1.48 1.47 (0.01) IN 28 KLCCS 0.2 (0.3) (0.1) 0.3 (0.0) 0.1 0.4 (0.3) 7.25 7.28 7.28 7.45 7.35 (0.10) IN 29 AMBANK (0.1) (0.1) 0.0 (0.0) 0.3 0.1 (0.0) 0.3 4.00 3.95 3.90 3.92 3.88 (0.04) IN 30 ASTRO 0.1 (0.3) 0.1 0.3 (0.3) (0.1) 0.1 (0.5) 2.00 1.95 1.95 2.00 1.94 (0.06) OUT 10.0 (11.9) (1.9) 37.0 (27.3) 9.6 12.5 (45.9) (33.4) 17.4 (20.4) (3.0) 10.7 (20.3) (9.6) 87.6 (125.8) (38.3) 18 (12) 12 (18) 19 (11) 20 (10) 13 (17) (RM'mn) INFLOW OUTFLOW NET FLOW Daily Trading Participation COMPANIES INFLOW OUTFLOW Date Retail Institution Foreign Total 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 25.0% 22.4% 22.7% 19.6% 21.0% 53.1% 50.9% 52.2% 53.8% 55.1% 21.9% 26.7% 25.1% 26.6% 23.9% 100% 100% 100% 100% 100% Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, April 24, 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
28. Technical View Tuesday , April 24, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Stock Screen Malaysia End Day Census of 23.04.2018 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 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 5-day 10-day 30-day 50-day Vol 20-day avg vol 1 DUTCH LADY MILK INDS BHD 67.00 65.63 66.93 68.23 51.15 67.04 66.94 67.18 66.71 76,600 16,735 2 ALLIANZ MALAYSIA BHD 11.50 10.43 11.28 12.13 49.17 10.94 10.95 11.77 12.25 465,200 93,105 3 PETRONAS GAS BHD 18.22 17.60 18.11 18.62 53.10 18.45 18.28 18.03 17.89 401,500 481,665 4 LOTTE CHEMICAL TITAN HOLDING 6.21 5.72 6.12 6.52 53.91 6.23 6.26 6.16 5.87 1,713,300 2,023,400 5 SERBA DINAMIK HOLDINGS BHD 3,157,000 3,575,905 6 BATU KAWAN BHD 7 3.40 2.95 3.30 3.65 53.44 3.40 3.34 3.34 3.39 18.48 17.89 18.30 18.71 51.77 18.55 18.38 18.31 18.59 27,100 20,560 BURSA MALAYSIA BHD 7.36 7.00 7.28 7.55 52.01 7.45 7.33 7.32 7.33 849,200 989,970 8 SUPERMAX CORP BHD 2.76 2.29 2.62 2.95 55.21 2.81 2.72 2.65 2.59 2,786,000 4,485,840 9 PETRONAS CHEMICALS GROUP BHD 8.46 8.10 8.36 8.61 59.39 8.47 8.47 8.28 8.19 5,551,700 5,935,500 10 TASEK CORP BHD 8.18 7.76 8.05 8.33 46.77 8.17 8.01 8.14 8.54 7,500 3,580 11 RCE CAPITAL BHD 1.36 1.07 1.29 1.51 53.37 1.40 1.37 1.30 1.36 381,200 419,835 2,718,835 12 CAELY HOLDINGS BHD 1.12 0.82 1.04 1.25 54.78 1.06 1.08 1.01 1.02 2,480,900 13 ALLIANCE BANK MALAYSIA BHD 4.36 4.13 4.31 4.48 53.18 4.40 4.35 4.29 4.22 540,800 740,840 14 GHL SYSTEMS BERHAD 1.28 1.00 1.20 1.40 52.66 1.29 1.28 1.23 1.30 713,300 532,425 15 MAXIS BHD 5.89 5.52 5.76 6.01 55.49 5.83 5.84 5.78 5.85 773,700 944,650 16 RHB BANK BHD 5.36 5.10 5.28 5.46 53.71 5.39 5.33 5.30 5.30 1,888,500 1,048,075 17 PMB TECHNOLOGY BHD 4.41 3.69 4.09 4.50 60.44 4.34 4.17 4.12 4.14 54,400 68,540 18 AXIATA GROUP BERHAD 5.45 5.23 5.38 5.54 55.01 5.43 5.38 5.39 5.44 2,736,500 2,308,855 19 MERCURY INDUSTRIES BHD 1.46 1.14 1.35 1.55 51.48 1.37 1.30 1.47 1.65 8,200 10,115 20 AEON CO (M) BHD 2.04 1.66 1.89 2.12 70.55 2.00 1.97 1.85 1.76 1,625,500 2,020,035 21 TRANSOCEAN HOLDINGS BHD 0.62 0.45 0.58 0.70 52.08 0.53 0.56 0.61 0.60 12,200 2,620 22 DENKO INDUSTRIAL CORP BHD 1.65 1.38 1.55 1.72 58.54 1.62 1.58 1.57 1.64 601,600 818,730 23 ROHAS TECNIC BHD 1.35 1.19 1.30 1.41 53.52 1.31 1.28 1.33 1.37 204,900 53,355 24 QL RESOURCES BHD 5.15 4.96 5.08 5.20 59.06 5.10 5.11 5.03 4.97 1,181,400 1,174,525 25 APEX HEALTHCARE BHD 5.75 5.34 5.57 5.80 57.45 5.64 5.57 5.60 5.47 14,300 15,250 26 N2N CONNECT BHD 0.90 0.69 0.82 0.94 56.23 0.87 0.86 0.84 0.88 2,736,600 1,939,715 37,020 27 IMASPRO CORP BHD 2.10 1.72 1.93 2.14 86.59 2.07 1.99 1.88 1.85 385,000 28 HOCK SENG LEE BERHAD 1.56 1.41 1.50 1.60 54.93 1.53 1.50 1.54 1.56 77,400 28,190 29 ECO WORLD DEVELOPMENT GROUP 1.11 0.96 1.05 1.15 54.15 1.11 1.09 1.06 1.16 1,987,900 1,651,700 30 MUDA HOLDINGS BERHAD 2.17 1.63 1.92 2.20 63.88 2.08 1.98 1.96 1.83 2,421,500 1,585,760 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
29. *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 RSI Bollinger Band Moving Average Middle Upper 14-day 5-day Vol 20-day avg vol 10-day 30-day 50-day 1 FRASER & NEAVE HOLDINGS BHD 35.00 32.00 33.28 34.57 79.06 33.62 33.27 32.85 31.87 345,900 613,240 2 MALAYSIA SMELTING CORP BHD 3.48 2.56 2.86 3.16 77.36 2.85 2.82 2.91 3.09 208,600 18,535 3 FAR EAST HOLDINGS BHD 11.30 8.22 9.61 11.01 78.23 10.32 9.90 9.25 9.20 8,000 6,055 4 PUBLIC BANK BERHAD 24.30 23.80 24.01 24.22 76.10 24.09 24.03 23.77 23.28 1,871,700 4,612,120 5 IJM PLANTATIONS BHD 2.37 2.17 2.25 2.32 65.66 2.27 2.26 2.26 2.28 6,100 61,445 6 ENCORP BHD 0.66 0.45 0.53 0.62 68.64 0.55 0.54 0.55 0.60 248,600 21,410 35,565 7 YEE LEE CORPORATION Lower 2.22 2.05 2.12 2.19 66.55 2.14 2.12 2.13 2.15 149,000 35.00 33.69 34.33 34.97 62.75 34.55 34.37 34.30 34.20 28,400 22,295 0.75 0.64 0.68 0.72 64.84 0.68 0.68 0.70 0.73 529,800 283,835 10 NEW HOONG FATT HOLDINGS BHD 3.46 3.20 3.32 3.44 67.12 3.38 3.33 3.31 3.31 6,600 16,665 11 IRE-TEX CORP BHD 0.25 0.12 0.17 0.23 73.63 0.20 0.18 0.18 0.16 20,765,100 6,588,430 12 JERASIA CAPITAL BHD 0.42 0.37 0.39 0.40 58.65 0.40 0.39 0.40 0.43 36,000 59,905 13 BOX-PAK (MALAYSIA) BERHAD 1.13 1.05 1.08 1.12 53.59 1.09 1.09 1.11 1.17 11,300 5,380 14 PARAGON UNION BHD 0.38 0.27 0.32 0.37 60.89 0.31 0.30 0.31 0.33 10,000 6,390 15 HUP SENG INDUSTRIES BHD 1.10 1.01 1.05 1.09 65.81 1.07 1.06 1.06 1.07 272,000 151,575 16 WIDETECH (MALAYSIA) BHD 0.63 0.52 0.57 0.62 61.50 0.58 0.57 0.55 0.51 19,200 995 17 EASTLAND EQUITY BHD 0.22 0.14 0.17 0.21 63.07 0.18 0.17 0.18 0.17 19,491,200 5,420,520 18 PAOS HOLDINGS BHD 0.44 0.38 0.40 0.43 54.77 0.41 0.41 0.41 0.43 5,000 3,045 19 CYL CORP BHD 0.64 0.53 0.58 0.63 59.07 0.59 0.58 0.59 0.61 21,500 5,470 20 PROGRESSIVE IMPACT CORP BHD 0.17 0.11 0.14 0.17 60.26 0.15 0.14 0.15 0.14 7,127,400 2,723,685 8 PANASONIC MANUFACTURING MALA 9 BOILERMECH HOLDINGS BERHAD 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 Lower Middle Upper RSI 14-day Moving Average 5-day 10-day 30-day 50-day Vol 20-day avg vol 1 KOSSAN RUBBER INDUSTRIES 7.05 7.09 7.52 7.95 28.54 7.33 7.48 7.66 7.97 156,000 2 MALPAC HOLDINGS BERHAD 0.99 1.02 1.12 1.22 15.24 1.08 1.09 1.15 1.20 600 410,350 380 3 COCOALAND HOLDINGS BHD 2.22 2.25 2.43 2.61 27.61 2.33 2.39 2.51 2.51 157,300 116,710 4 IQ GROUP HOLDINGS BHD 1.24 1.26 1.37 1.47 28.01 1.32 1.34 1.40 1.46 52,500 62,665 5 SARAWAK PLANTATION BHD 1.70 1.72 1.76 1.80 37.88 1.76 1.76 1.75 1.75 5,000 83,905 6 TAFI INDUSTRIES BHD 0.30 0.32 0.38 0.45 21.41 0.34 0.36 0.39 0.41 10,000 1,300 7 YKGI HOLDINGS BHD 0.29 0.30 0.38 0.45 36.77 0.42 0.40 0.38 0.33 21,207,600 4,206,205 8 DKSH HOLDINGS MALAYSIA BHD 3.64 3.65 3.82 3.98 31.21 3.72 3.79 3.84 3.85 19,700 41,335 9 PELANGI PUBLISHING GROUP BHD 0.45 0.46 0.50 0.55 36.19 0.49 0.50 0.51 0.51 3,000 16,750 10 SUIWAH CORP BHD 2.15 2.16 2.23 2.30 30.76 2.19 2.22 2.31 2.42 2,000 2,310 11 PLS PLANTATIONS BHD 0.78 0.79 0.85 0.91 18.33 0.81 0.83 0.89 1.00 100 3,175 12 FIBON BHD 0.48 0.49 0.55 0.61 38.86 0.53 0.55 0.56 0.58 1,000 2,980 13 PROTASCO BHD 0.77 0.78 0.82 0.86 31.99 0.84 0.83 0.82 0.84 703,300 784,969 14 GUNUNG CAPITAL BHD 0.36 0.36 0.38 0.40 40.54 0.39 0.38 0.39 0.39 8,200 18,350 15 ARK RESOURCES BHD 0.31 0.31 0.38 0.45 14.99 0.33 0.35 0.39 0.43 500 25 16 MAGNUM BHD 1.77 1.77 1.81 1.85 32.87 1.80 1.81 1.85 1.87 295,500 199,345 17 SERSOL BHD 0.15 0.15 0.16 0.17 34.14 0.16 0.16 0.16 0.16 168,000 340,660 18 MUAR BAN LEE GROUP BHD 1.02 1.02 1.08 1.13 35.37 1.06 1.08 1.12 1.17 76,500 166,535 19 ECO WORLD INTERNATIONAL BHD 0.98 0.98 1.00 1.02 38.42 0.99 1.00 1.01 1.02 237,000 312,685 20 BREM HOLDING BHD 0.86 0.86 0.88 0.90 38.06 0.88 0.87 0.89 0.92 193,600 23,900 Raw data sourced from Bloomberg S Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, April 24, 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
30. Tuesday , 24 April, 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 ( F SS T I ) 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
31. Technical View Tuesday , April 24, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Watch Singapore FSSTI: 3,579.54 (+6.16, +0.17%) Chartist: Stephen Soo Stock Name FSSTI SINGTEL Close 23-Apr Tel: +603-2167 9607 Bollinger Bands Change High Low 3,579.54 6.16 3,591.84 3,563.19 3,334.71 3,460.30 3.42 0.01 3.43 3.40 3.33 3.38 Lower Mid Upper RSI 14d stsoo@ta.com.my Moving Averages 10d 30d 3,585.89 62.07 3,509.13 3.43 3.39 52.26 www.taonline.com.my DMI 50d MACD DMI MACD DI + DI - ADX Diff Line Signal Diff Recent Signal 3,478.96 3,475.59 27.75 19.38 21.97 8.37 22.84 4.70 18.14 BUY BUY 3.40 3.38 2.32 0.00 -0.01 0.01 BUY BUY 21.97 19.65 16.01 DBS 29.63 0.04 29.77 29.23 26.17 27.95 29.73 64.88 28.65 28.13 28.22 32.07 17.28 22.10 14.79 0.39 0.15 0.25 BUY BUY OCBC 13.70 (0.03) 13.78 13.66 12.23 12.95 13.67 65.87 13.18 13.09 13.03 27.93 19.46 26.23 0.13 0.02 0.12 BUY BUY UOB 29.63 (0.06) 29.76 29.45 26.10 27.86 29.61 68.49 28.52 28.05 27.81 36.48 16.45 19.35 20.02 0.40 0.15 0.26 BUY BUY JARDINE M. 61.50 (0.46) 61.61 61.30 60.92 61.62 62.33 51.23 61.46 62.00 62.21 22.26 25.63 11.66 (3.37) -0.24 -0.28 0.04 SELL BUY 3.22 0.01 3.23 3.20 3.10 3.17 3.23 56.14 3.18 3.18 3.15 18.86 17.18 13.55 1.68 0.01 0.00 0.00 BUY BUY HK LAND 7.13 0.10 7.15 7.02 6.77 6.98 7.19 52.32 7.07 6.97 6.96 21.32 15.99 15.85 5.32 0.04 0.03 0.01 BUY BUY CAPLAND 3.75 0.02 3.77 3.72 3.50 3.63 3.76 59.03 3.68 3.64 3.61 24.79 17.20 14.74 7.59 0.03 0.01 0.02 BUY BUY GENSP 1.20 0.01 1.21 1.18 1.03 1.12 1.22 59.98 1.17 1.12 1.16 23.58 17.11 22.97 6.46 0.01 0.00 0.01 BUY BUY KEPPEL 8.29 0.08 8.35 8.22 7.51 7.80 8.09 65.78 7.88 7.80 7.85 29.69 16.94 14.79 12.75 0.05 -0.01 0.05 BUY BUY WILMAR 8.47 SGX 7.70 0.14 7.78 7.64 7.18 7.39 7.59 57.24 7.45 7.43 7.47 19.09 18.97 24.54 0.12 0.01 -0.03 0.04 BUY BUY SIA 10.77 0.00 10.84 10.72 10.61 10.85 11.08 44.62 10.89 10.93 10.97 14.53 24.49 21.94 (9.96) -0.04 -0.04 (0.00) SELL SELL FNN 2.09 0.01 2.12 2.08 2.06 2.13 2.20 31.36 2.11 2.18 2.26 23.64 20.45 31.97 3.19 -0.05 -0.05 0.00 BUY BUY NOBLE 0.11 0.01 0.11 0.11 0.04 0.09 0.13 48.83 0.10 0.10 0.13 29.91 24.49 31.26 5.41 0.00 -0.01 0.01 BUY BUY CITY DEV 12.65 (0.01) 12.75 12.59 12.49 12.81 13.14 45.55 12.72 12.99 12.85 17.35 21.62 24.64 (4.28) -0.08 -0.07 (0.01) SELL SELL JARDINE S. 38.10 (0.18) 38.48 37.84 37.91 38.46 39.01 45.90 38.51 38.77 38.71 13.59 18.63 14.16 (5.03) -0.14 -0.14 (0.01) SELL SELL 2.71 0.02 2.75 2.68 2.38 2.54 2.71 64.34 2.59 2.53 2.56 32.04 12.19 24.56 19.85 0.04 0.01 0.03 BUY BUY JARDINE C&C SG PRESS 34.92 (0.32) 35.56 34.88 33.71 34.85 35.99 49.31 35.33 34.94 35.84 12.55 19.71 33.21 (7.16) -0.10 -0.26 0.16 SELL BUY GOLDEN AGRI 0.35 0.00 0.35 0.35 0.34 0.35 0.35 51.94 0.35 0.35 0.35 10.75 10.99 15.10 (0.24) 0.00 0.00 0.00 SELL BUY SG TECH 3.62 (0.03) 3.67 3.60 3.48 3.60 3.72 59.17 3.65 3.56 3.48 20.86 14.28 22.81 6.58 0.05 0.05 (0.00) BUY SELL OLAM INT 2.33 0.04 2.34 2.29 2.25 2.33 2.42 44.37 2.35 2.35 2.30 18.74 24.78 16.12 (6.04) 0.00 0.01 (0.01) SELL SELL CAP TRUST 2.10 0.00 2.11 2.07 2.03 2.08 2.12 57.93 2.09 2.07 2.04 15.77 11.29 11.27 4.48 0.02 0.01 0.00 BUY BUY SEMBCORP 3.22 (0.02) 3.28 3.20 3.00 3.10 3.19 64.31 3.13 3.09 3.13 28.95 14.76 11.50 14.19 0.01 -0.01 0.02 BUY BUY SEMCORP M. 2.30 (0.02) 2.35 2.30 2.09 2.21 2.33 59.10 2.25 2.17 2.23 26.97 20.51 11.93 6.46 0.03 0.01 0.01 BUY BUY CMFT DELGRO 2.19 0.00 2.21 2.18 1.96 2.10 2.23 63.43 2.15 2.07 2.05 30.78 7.98 32.00 22.81 0.05 0.03 0.01 BUY BUY STARHUB 2.31 0.01 2.33 2.29 2.26 2.31 2.35 40.24 2.30 2.35 2.44 16.29 21.74 34.44 (5.46) -0.04 -0.05 0.01 SELL BUY SIA ENG 3.22 0.00 3.25 3.22 3.16 3.20 3.23 51.57 3.21 3.21 3.25 20.83 13.00 18.03 0.00 -0.01 0.01 BUY BUY IFOOD AGRI 0.32 0.00 0.33 0.32 0.32 0.32 0.33 41.87 0.32 0.32 0.33 13.40 13.43 12.61 (0.03) 0.00 0.00 0.00 SELL BUY YZJ 1.19 (0.02) 1.23 1.19 1.14 1.20 1.26 44.38 1.21 1.24 1.31 17.24 19.19 31.60 (1.95) -0.03 -0.04 0.01 SELL BUY 7.83 The table above consists of the revamped 30 SGX FTSE Straits Times 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
32. 24-Apr-18 Corporate News : SGX’s revenue could be hit if new Indian derivative contracts to be launched in June aren’t enough to offset the loss of existing products based on India’s exchange’s Nifty benchmark after August. – Bloomberg. Technical Comments: Any further upside on Singapore Exchange shares would be ideal to sell before profit taking-interest and overbought technical momentum limit upside, with good chart support seen at the 38.2%FR (SGD7.44) and 23.6%FR (SGD7.12), while immediate resistance is capped at the 76.4%FR (SGD8.28) and the peak of 18/05/15 (SGD8.80). SINGAPORE EXCHANGE LTD SGD7.70 (+0.14) BOLLINGER BANDS Upper Middle Lower SGD SGD SGD SIMPLE MOVING AVERAGES 7.65 7.40 7.14 10-day 30-day 50-day DMI Recent Signal SGD SGD SGD 7.49 7.43 7.46 DAILY MACD BUY Recent Signal BUY Page 2 of 3
33. 24-Apr-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 ST DBS OCBC UOB JM WIL HKL CAPL GENS KEP SGX SIA FNN NOBL CIT JS SPH JCNC GGR STE OLAM CT SCI SMM CD STH SIE IFAR YZJSGD Stock Name SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI YZJ Close Target Price % upside EPS ($) PER(x) Div Yield(%) 2017 2018 2017 2018 2017 2018 52week Price High % Chg Low YTD 3.42 4.14 17% 0.2 0.2 14.3 14.0 5.9 5.3 3.97 3.30 -4.20 29.63 31.27 5% 2.2 2.5 13.2 11.7 4.1 4.3 29.95 18.89 19.24 13.70 14.52 6% 1.1 1.2 12.3 11.1 3.1 3.3 13.78 9.61 10.57 29.63 31.01 4% 2.3 2.6 12.7 11.5 3.4 3.6 29.90 21.41 12.02 61.50 66.27 7% 4.6 5.0 13.3 12.3 2.7 3.0 68.11 59.73 1.23 3.22 3.62 11% 0.2 0.2 12.9 11.6 2.4 2.6 3.87 2.97 4.21 7.13 7.88 9% 0.4 0.4 16.3 16.1 3.0 3.0 7.89 6.72 1.28 3.75 4.26 12% 0.2 0.2 16.8 16.4 3.1 3.3 3.88 3.42 6.23 1.20 1.45 17% 0.1 0.1 19.7 18.8 2.9 3.0 1.41 1.02 -8.40 8.29 9.33 11% 0.5 0.6 15.2 14.1 3.1 3.2 8.92 6.16 12.79 7.70 8.24 7% 0.3 0.4 22.1 20.8 3.9 4.1 8.50 7.10 3.49 10.77 11.72 8% 0.6 0.6 18.2 19.1 3.1 2.9 11.50 9.66 0.94 2.09 2.83 26% 0.1 0.1 20.9 19.0 2.6 2.6 2.66 2.04 -18.99 -45.00 0.11 NA NA 0.2 0.2 NA 0.4 0.0 45.5 1.56 0.06 12.65 14.63 14% 0.7 0.7 18.2 17.5 1.3 1.4 13.60 10.10 1.28 38.10 42.75 11% 3.1 3.4 12.3 11.2 0.9 0.9 46.48 37.50 -3.74 2.71 2.52 -8% 0.1 0.1 20.2 19.6 5.2 5.2 3.42 2.41 2.26 34.92 42.60 18% 2.3 2.5 11.6 10.6 2.6 2.8 48.50 33.48 -14.14 0.35 0.33 -5% 0.0 0.0 16.5 16.5 1.7 1.7 0.41 0.34 -5.41 3.62 4.02 10% 0.2 0.2 20.5 19.0 4.3 4.5 3.86 3.16 11.04 2.33 NA NA 0.1 0.2 16.1 15.0 2.4 2.4 2.50 1.88 14.78 2.10 2.25 7% 0.1 0.1 16.4 18.9 5.2 5.3 2.17 1.92 -1.41 3.22 3.56 10% 0.2 0.3 15.4 12.5 2.4 2.9 3.60 2.89 6.27 2.30 2.21 -4% 0.0 0.0 74.2 47.9 0.9 1.0 2.81 1.55 25.00 2.19 2.30 5% 0.1 0.1 16.0 15.5 4.7 4.8 2.80 1.89 10.61 2.31 2.32 1% 0.1 0.1 17.9 19.3 6.8 6.7 2.99 2.26 -18.95 3.22 3.74 14% 0.2 0.2 21.5 20.1 4.3 4.4 4.16 3.08 2.88 0.32 0.40 20% 376.0 446.2 9.0 7.6 NA NA 0.52 0.32 -17.95 1.19 1.52 22% 0.6 0.6 9.7 9.8 17.6 17.5 1.74 1.06 -19.05 Note: The above data is based on Bloomberg consensus Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, April 24, 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