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Bursa Malaysia Daily Market Report - 24 January

Mohd Noordin
By Mohd Noordin
4 years ago
Bursa Malaysia Daily Market Report - 24 January

Ard, Mal, Daya, Sales


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  1. Wednesday , 24 January, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . A u t o m o t i ve S e c t o r : 2 n d Y e a r o f De c lin e 2 . D ig i. C o m Be r h a d : I n t e rn e t R e v e n u e L e a d s th e Wa y 3 . K P J H e a lt h c a re Be rh a d : Pa r tn e rsh ip w i th Q u a d ria to dr iv e L a b l in k E x p a n sio n Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks ( L oc al ) 2. D ai l y St o ck S cr een 3. D ai l y For ei gn T ech n i c al St o ck P i cks ( A US ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
  2. Daily Market Commentary Wednesday , 24 January 2018 Review & Outlook For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my KLSE Market Statistics (23.01.2018) Main Market 2,467.6 Warrants 750.4 ACE Market 688.2 Bond 5.2 ETF 2.1 LEAP 0.0 Total 3,913.6 Off Market 94.1 Volume -733.2 132.1 -102.4 -0.9 0.6 0.0 -21.1 2,704.9 139.6 168.8 1.4 2.5 0.0 3,017.1 87.1 Value 151.6 27.0 -27.4 -0.4 0.8 0.0 -682.8 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP January 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 1,838.04 13,312.65 17,512.91 1,839.00 4.89 72.89 156.41 2.50 Value/ 1.10 388 0.19 192 0.25 61 0.27 1 1.18 7 0.20 0 0.77 649 0.93 233 81 37 4 1 1 357 % chg % YTD chg 0.27 0.55 0.90 0.14 2.29 2.86 2.71 3.03 The local benchmark climbed to a near three-year high on Tuesday, with investor sentiment lifted by regional strength after US lawmakers ended a three-day government shutdown. The index added 4.89 points to close at the day's high of 1,838.04, off an earlier low of 1,830.98, as gainers led losers 649 to 357 on slower turnover of 3.91bn shares worth RM3.02bn. Sustained strength in the ringgit and oil prices should underpin the current uptrend and encourage rotational plays on oil & gas and construction stocks. Immediate resistance for the index remains at the recent high of 1,840, matching the 123.6%FP, next will be 1,867, the April 2017 peak, followed by the all-time high of 1,896 on July 2014. Immediate uptrend supports stays at 1,820, then 1,800 and 1,796, the breakout level. Positive technical momentum on Ekovest supports upside bias towards the 61.8%FR (RM1.14), with a convincing breakout to aim for the 76.4%FR (RM1.28) and RM1.40 ahead. Key retracement supports are at the 50%FR (RM1.02) and 38.2%FR (90sen). Likewise, UEM Sunrise should challenge the 61.8%FR (RM1.22) for breakout and target the 76.4%FR (RM1.28) and the 18/5/17 peak (RM1.36) going forward, while key chart supports are at the 38.2%FR (RM1.14) and 23.6%FR (RM1.08). News Bites • Malaysia wants to maintain its fiscal health to ensure its sovereign credit rating remains within the "A" band, Prime Minister Datuk Seri Najib Razak said. • Digi.Com Berhad announced 4QFY17 net profit of RM360mn (-6.4% QoQ, -3.9% YoY), bringing FY17's cumulative profit to RM1,477mn (9.6% YoY), which was within expectations. • Crest Builder Holdings Bhd has been awarded a RM328.80mn contract 26,210.81 -3.79 -0.01 6.03 by Perdana ParkCity Sdn. Bhd. for the construction of main buildings 7,460.29 52.26 0.71 8.07 works at Desa Parkcity, Kuala Lumpur. • Singapore-based private equity firm Quadria Capital Investment 7,731.83 16.39 0.21 0.57 Management Pte Ltd is investing RM119.92mn to take up a 49% stake 24,124.15 307.82 1.29 5.97 in KPJ Healthcare Bhd's diagnostics unit, Lablink (M) Sdn. Bhd. 2,536.60 34.49 1.38 2.80 • Hengyuan Refining Company Bhd has secured financing facilities totaling USD430mn (RM1.7bn) from 3 banks for planned upgrades and 32,930.70 537.29 1.66 10.07 maintenance projects for the refinery. 3,592.08 22.65 0.63 5.56 • Petronas Chemicals Group Bhd will be investing roughly RM6bn to 1,831.78 7.72 0.42 4.45 RM7bn in new plants to produce derivatives and specialty chemicals over a 15-year period from 2020. 6,635.33 134.80 2.07 4.40 • Malaysia Building Society Bhd's shareholders have approved the 3,546.51 45.14 1.29 7.24 acquisition of the entire stake in Asian Finance Bank Bhd for RM644.95mn. 1,950.99 7.09 0.36 2.72 • Pos Malaysia Bhd has appointed Al-Ishsal Ishak, 49, as its group chief 6,036.96 45.05 0.75 -0.46 executive officer effective from 02 February 2018, after the resignation of its former chieftain Datuk Mohd Shukrie Mohd Salleh. • Mah Sing Group Bhd's Group Managing Director, Tan Sri Leong Hoy Top 10 KLCI Movers Based on Kum is targeting to rake in minimum sales of RM1.8bn in 2018, matching Off Market Mkt Cap. last year's sales level. (mn) (RM) • Lotte Chemical Titan Holding Bhd has signed a 3-year sales contract Counter Mkt Cap. Chg Vol. with one of its biggest suppliers, Abu Dhabi National Oil Company, for (RM’mn) (RM) (mn) DNONCE 54.0 @ 0.41 the purchase of refined products and paraffinic naphtha. MAYBANK 106,775 0.02 11.01 JMR 12.0 @ 1.00 • Karex Bhd is setting aside RM90mn in capital expenditure to increase TENAGA 89,863 0.04 11.74 KRONO 10.0 @ 0.84 automation in its manufacturing processes and rely less on manual PCHEM 64,240 0.03 6.58 labour, said chief executive officer Goh Miah Kiat. JHM 4.0 @ 3.15 • DRB-Hicom Bhd's subsidiary Proton Holdings Bhd has terminated its CIMB 63,656 0.01 13.13 INARI 4.0 @ 3.45 equity JV contract with China's Goldstar Heavy Industrial Co Ltd to AXIATA 50,579 0.03 8.69 SUNZEN 3.0 @ 0.29 produce and sell Lotus cars in China. MAXIS 47,332 0.01 1.41 COMPLET 2.1 @ 7.00 • Green Packet Bhd has bagged a contract to supply and assembly DVBDIGI 38,253 0.03 3.24 PARLO 1.5 @ 0.18 T2 set-top boxes to television broadcasting company MYTV GENTING 37,566 0.10 7.65 Broadcasting Sdn. Bhd. SUNZEN-WA 1.1 @ 0.19 • Asiamet Education Group Bhd said it has obtained valuation reports SIMEPLT 37,473 0.01 6.91 UMWOG 1.1 @ 0.36 for all 6 assets it has put up for sale, including its main campus in Cheras, PETGAS 35,934 0.16 0.27 Selangor. • Sunway Construction Group Bhd, which has expressed its intention to expand into Asean, said it is now in discussion with potential joint venture partners in Myanmar and Indonesia. • KLCCP Stapled Group may re-evaluate the development components Exchange Rate Commodities Futures of Kompleks Dayabumi Phase 3 project if the group does not manage USD/MYR 3.9270 -0.008 Palm Oil (RM/mt) 2,493.00 17.00 to secure an anchor tenant. Crude Oil ($/Barrel) 64.47 0.81 USD/JPY 110.28 -0.620 • Samchem Holdings Bhd is exploring the possibility of listing its indirect Gold ($/tr.oz.) 1,341.00 7.60 63.25%-owned subsidiary Samchem Sphere JSC on the Ho Chi Minh EUR/USD 1.230 0.0036 Stock Exchange. • The Bank of Japan maintained its massive monetary stimulus program Important Dates and kept its price and economic forecasts unchanged. • Negotiators from 11 Pacific Rim nations agreed yesterday on a TransPDZ - 4:2 Rights Issue - RI of up to 434.7m shares together with up Pacific Partnership trade deal and aim to sign the agreement on March to 325.9m free detachable warrants. 8 in Chile. • Fitch Ratings warned that it would take ratings action against Chinese 4 rights shares together with 3 warrants for every 2 existing shares local governments if revisions to their fiscal data were significant, after held, at an issue price of RM0.10 per rights share. recent reports on fake economic data deepened concerns about Application Closed: 22/01/2018. LISTING ON: 07/02/2018. governance and oversight. 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. 24-Jan-18 Technical Comments : Bargain Ekovest & UEM Sunrise Positive technical momentum on Ekovest supports upside bias towards the 61.8%FR (RM1.14), with a convincing breakout to aim for the 76.4%FR (RM1.28) and RM1.40 ahead. Key retracement supports are at the 50%FR (RM1.02) and 38.2%FR (90sen). Likewise, UEM Sunrise should challenge the 61.8%FR (RM1.22) for breakout and target the 76.4%FR (RM1.28) and the 18/5/17 peak (RM1.36) going forward, while key chart supports are at the 38.2%FR (RM1.14) and 23.6%FR (RM1.08). EKOVEST Z RM1.09 (+0.05) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 1.19 1.04 0.90 10-day 30-day 50-day RM RM RM DAILY MACD BUY Recent Signal Signal Change DMI Recent Signal Signal Change UEM SUNRISE RM RM RM SIMPLE MOVING AVERAGES 1.24 1.14 1.04 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change SELL RM1.20 (+0.02) BOLLINGER BANDS Upper Middle Lower 1.08 1.00 0.99 RM RM RM DAILY MACD 1.17 1.11 1.09 BUY Page 2 of 3
  4. Wednesday , January 24, 2018 FBMKLCI: 1,838.04 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 Strength on RM and Oil Price to Sustain Uptrend The local benchmark climbed to a near three-year high on Tuesday, with investor sentiment lifted by regional strength after US lawmakers ended a three-day government shutdown. The index added 4.89 points to close at the day’s high of 1,838.04, off an earlier low of 1,830.98, as gainers led losers 649 to 357 on slower turnover of 3.91bn shares worth RM3.02bn. Key Resistance at 1,840/1,867, Supports at 1,820/1,800 Sustained strength in the ringgit and oil prices should underpin the current uptrend and encourage rotational plays on oil & gas and construction stocks. Immediate resistance for the index remains at the recent high of 1,840, matching the 123.6%FP, next will be 1,867, the April 2017 peak, followed by the all-time high of 1,896 on July 2014. Immediate uptrend supports stays at 1,820, then 1,800 and 1,796, the breakout level. Bargain Ekovest & UEM Sunrise Positive technical momentum on Ekovest supports upside bias towards the 61.8%FR (RM1.14), with a convincing breakout to aim for the 76.4%FR (RM1.28) and RM1.40 ahead. Key retracement supports are at the 50%FR (RM1.02) and 38.2%FR (90sen). Likewise, UEM Sunrise should challenge the 61.8%FR (RM1.22) for breakout and target the 76.4%FR (RM1.28) and the 18/5/17 peak (RM1.36) going forward, while key chart supports are at the 38.2%FR (RM1.14) and 23.6%FR (RM1.08). Asian Markets Heat Up as U.S. Government Shutdown Ends Asian stocks powered higher Tuesday, building on continued records in the U.S. after U.S. senators struck a deal to end a three-day government shutdown. The major U.S. indexes set fresh record highs Monday after leaders in the Senate said they reached a deal to fund the federal government for three weeks as negotiations on a longer-term deal continue. Congress approved the extension, ending a government shutdown, after the close of U.S. stock trading. Investors also digested the Bank of Japan's decision to keep monetary policy steady. In a widely expected move, the BOJ maintained its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent. The BOJ also said “inflation expectations have moved sideways recently,” offering a slightly more upbeat view than three months ago when it said they were on a weak note. Japan’s Nikkei share average extended gains on Tuesday, rising to its highest level since November 1991. The Nikkei rose 1.29 percent at 24,124.15. China stocks also extended a rally to fresh two-year peaks, underpinned by continued gains in banking and real estate firms. The Shanghai Composite index was up 45.62 points or 1.3 percent at 3,546.98. Across the Korean Strait, the Kospi added 1.01 percent despite automakers slipping into negative territory during the session. Over in Sydney, the S&P/ASX 200 climbed 0.75 percent on strength in the energy sector. Upbeat Corporate Earnings Lifts S&P 500 & Nasdaq The S&P 500 and the Nasdaq ended at fresh records Tuesday as a spate of upbeat earnings helped lift the sentiment even as the Dow edged lower. Video streaming giant Netflix was among the biggest movers Tuesday, surging 10 percent to a new high after reporting strong Page 1 of 10
  5. 24-Jan-18 subscriber growth and sales that topped analyst expectations . The internet stock is up roughly 30 percent this year, as the best-performing technology firms have continued to lead major indexes higher. Meanwhile, Johnson & Johnson fell 4.26 percent, dragged down by a $13.6billion charge related to the new U.S. tax law and a court ruling on a crucial patent on its blockbuster rheumatoid arthritis drug Remicade. Procter & Gamble also dropped 3.09 percent as investors focused on a drop in gross margins at the world’s largest consumer goods maker. P&G and J&J are all Dow components. Of the 68 companies in the benchmark index that have posted results, 76.5 percent have topped Wall Street expectations. Investors will be focusing on the European Central Bank’s next policy release, expected later this week, for clues about whether its long-held accommodative monetary policy will end in the coming months. The Dow Jones Industrial Average fell 3.79 points, or 0.01 percent, to 26,210.81, the S&P 500 gained 6.17 points, or 0.22 percent, to 2,839.14 and the Nasdaq Composite added 52.26 points, or 0.71 percent, to 7,460.29. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Wednesday, January 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 10
  6. 24-Jan-18 N e w s i n B r i e f Corporate Crest Builder Holdings Bhd has been awarded a contract by Perdana ParkCity Sdn . Bhd. for the construction of main buildings works that consist 2 blocks of 40-storey residential apartments and car park podium at Desa Parkcity, Kuala Lumpur for a contract sum of RM328.80mn. The period of the contract is 33 months from 9 February 2018 to 8 November 2020. (Bursa Malaysia) Singapore-based private equity firm Quadria Capital Investment Management Pte Ltd is investing RM119.92mn to take up a 49% stake in KPJ Healthcare Bhd's diagnostics unit, Lablink (M) Sdn. Bhd. This marks the beginning of the partnership between KPJ and Quadria Capital to grow Lablink's pathology and diagnostics businesses in Malaysia and explore new growth markets in Southeast Asia. (Bursa Malaysia/The Edge) Hengyuan Refining Company Bhd has secured financing facilities totaling USD430mn (RM1.7bn) from 3 banks for planned upgrades and maintenance projects for the refinery. The facilities are segregated into a term loan and a revolving credit line. The term loan will be used to refinance group's existing term loan and also to partially finance its planned capital expenditure. The revolving credit facility will support the group’s working capital needs. (Bursa Malaysia/The Star) Petronas Chemicals Group Bhd will be investing roughly RM6bn to RM7bn in new plants to produce derivatives and specialty chemicals over a 15-year period from 2020. Chief executive officer Datuk Sazali Hamzah said the plants will be located at the Refinery and Petrochemical Integrated Development hub in Pengerang as well as in Kerteh, Kuantan, Sabah, and Sarawak. (The Edge) Malaysia Building Society Bhd (MBSB)’s shareholders have approved the acquisition of the entire stake in Asian Finance Bank Bhd (AFB) for RM644.95mn. The acquisition will be paid by cash amounting to RM396.89mn and the issuance of 225.51mn shares at an issue price of RM1.10. The integration between MBSB and AFB is expected to be completed by March 2018. The group said there would be no staff lay-offs except for 1 or 2 management staff. (Bursa Malaysia/New Straight Times/The Edge) Pos Malaysia Bhd has appointed Al-Ishsal Ishak, 49, as its group chief executive officer effective from 02 February 2018, after the resignation of its former chieftain Datuk Mohd Shukrie Mohd Salleh. Meanwhile, Datuk Azlan Shahrim, who had been acting group chief executive officer will also cease the position and continue as group chief operating officer. (Bursa Malaysia/The Edge) Mah Sing Group Bhd’s Group Managing Director, Tan Sri Leong Hoy Kum is targeting to rake in minimum sales of RM1.8bn in 2018, matching last year's sales level. He said this was premised on the group's strategy to launch more well-planned mass market residential projects priced below RM500k with good concepts in strategic locations. (Bernama) Lotte Chemical Titan Holding Bhd (LCTM) has signed a 3-year sales contract with one of its biggest suppliers, Abu Dhabi National Oil Company, for the purchase of refined products and paraffinic naphtha. The pricing will be based on market price as at loading month, while the estimated quantity to be supplied to LCTM will be between 600k tonnes and 1mn tonnes per year. (Bursa Malaysia/The Edge) Condom maker Karex Bhd is setting aside RM90mn in capital expenditure to increase automation in its manufacturing processes and rely less on manual labour, said chief executive officer Goh Miah Kiat. (New Straight Times) Page 3 of 10
  7. 24-Jan-18 Cabnet Holdings Bhd has bagged RM7mn contract from Potensi Hijau Sdn . Bhd. to supply and maintain security systems at a commercial building in Johor Bahru. The contract will commence on Feb 1, 2018, and is scheduled to be completed by Jan 1, 2021. (Bursa Malaysia/The Edge) DRB-Hicom Bhd's subsidiary Proton Holdings Bhd has terminated its equity joint venture (JV) contract with China's Goldstar Heavy Industrial Co Ltd to produce and sell Lotus cars in China because the JV company Goldstar Lotus Automobile Co Ltd had failed to obtain the required manufacturing license in China in time. (Bursa Malaysia/The Edge) Green Packet Bhd has bagged a contract to supply and assembly DVB-T2 (T2000) set-top boxes to television broadcasting company MYTV Broadcasting Sdn. Bhd. Under the contract, purchase orders may be issued by MYTV to the contractor from time to time for the supply of up to 3.6mn set-top boxes, provided that no further purchase orders will be issued after the expiry of 2 years. Hence, the total value of the contract will depend on the issuance of purchase orders by MYTV. (Bursa Malaysia/The Edge) TH Heavy Engineering Bhd is in the final stages of negotiations with Yinson Energy Sdn. Bhd. for the latter to take over the group's floating production storage and offloading vessel charter agreement with JX Nippon Oil & Gas Exploration (Malaysia) Ltd. (Bursa Malaysia/The Edge) Asiamet Education Group Bhd said it has obtained valuation reports for all 6 assets it has put up for sale, including its main campus in Cheras, Selangor. (Bursa Malaysia/The Edge) AirAsia Bhd, the budget airline that has grown to become one of the biggest customers of Airbus SE planes, could consider buying more aircraft as economic expansion across India, China and the Southeast Asian nations propel travel demand across the continent. (The Edge) Sunway Construction Group Bhd, which has expressed its intention to expand into Asean, said it is now in discussion with potential joint venture partners in Myanmar and Indonesia, according to the group's managing director Chung Soo Kiong. (The Edge) Top Glove Corp Bhd said its financial health is not compromised as it hunts for more mergers and acquisitions, given that a combination of organic and inorganic growth could boost its top and bottom lines by a double-digit growth. (The Edge) Seacera Group Bhd has been approved as a bumiputra-controlled public listed company for a period of 1 year, enabling it to participate in the tender exercise of government projects that are allocated for bumiputra companies. (Bursa Malaysia/The Star) KLCCP Stapled Group may re-evaluate the development components of Kompleks Dayabumi Phase 3 project if the group does not manage to secure an anchor tenant. (The Edge) Samchem Holdings Bhd is exploring the possibility of listing its indirect 63.25%-owned subsidiary Samchem Sphere JSC on the Ho Chi Minh Stock Exchange. The group said the proposed listing will enable it to capitalise on the fast-growing Vietnamese economy and gain direct access to the Vietnamese capital market to raise funds for its future expansion. (Bursa Malaysia/The Edge) DiGi.Com Bhd's net profit fell 3.9% YoY to RM360.08mn in 4QFY17 from RM374.63mn a year ago, on higher finance cost from adverse fair value changes on interest rate swaps of RM12mn and settlement costs of RM6mn. Meanwhile, quarterly revenue also slipped 1.5% YoY to RM1.64bn from RM1.67bn a year ago. For FY17, the net profit dropped 9.6% YoY to Page 4 of 10
  8. 24-Jan-18 RM1 .48bn from RM1.63bn, while revenue fell 3.9% YoY to RM6.34bn from RM6.60bn. The group declared a fourth interim dividend of 4.6sen per share. (Bursa Malaysia/The Edge) Caring Pharmacy Group Bhd's net profit jumped 55% YoY to RM4.27mn in 2QFY18, from RM2.76mn in the previous year due to higher revenue and better margins. Quarterly revenue rose 8% YoY to RM123.45mn from RM113.86mn. For 1HFY18, the group recorded net profit more than double to RM7.53mn from RM3.49mn, while revenue rose 11% YoY to RM248.7mn from RM224.8mn. (Bursa Malaysia/The Edge) Page 5 of 10
  9. 24-Jan-18 N e w s I n B r i e f Economy Asia Malaysia Wants to Keep Top Investment Credit Rating Band : PM Malaysia wants to maintain its fiscal health to ensure its sovereign credit rating remains within the "A" band, Prime Minister Datuk Seri Najib Razak said. "It is essential to keeping down our deficit; to keeping government debt below our self-imposed level to 55% of GDP (Gross Domestic Product)," Najib said at Invest Malaysia 2018 conference. He added that if the country's ratings were downgraded, lending costs for all, including business and individuals seeking loans, would increase. "All would suffer," Najib said, adding that the Goods and Services Tax (GST) had shielded Malaysia from the economic setbacks. He said the GST, together with the decision to reduce reliance on oil and gas revenue, was difficult but necessary and far-sighted. "It was not popular, but it was the right thing to do. There is a reason that over 160 countries around the world implement a similar tax, and that is to ensure a wide enough tax base, one that can withstand fluctuations in the global economy," he explained. Najib noted that other countries had followed suit, such as India – as well as two of the richest countries in the world, Saudi Arabia and the United Arab Emirates. "The fact that they have introduced their own versions should put the lie to the idea that we could just abolish or zero-rate GST. Never mind how we would replace the RM41 billion collected from GST last year," he added. (News Straits Times) PM: Investors Recognise Malaysia's Economic, Financial Fundamentals The stronger ringgit indicates positive sentiment among investors and a recognition of Malaysia’s excellent economic and financial fundamentals, says Datuk Seri Najib Tun Razak. The Prime Minister said the ringgit appreciated by 10.4% against the US dollar in 2017. On Jan 5, 2018, it closed at a 17-month high, breaking the four dollar psychological barrier. Delivering his keynote address at the Invest Malaysia, he said while one factor was also due to the recovery in crude oil prices, the stronger economic fundamentals speak for themselves. Malaysia, he said, has enjoyed years of strong growth – with figures that most developed economies could only dream of – even during times of global economic turmoil and uncertainty. Najib said investors and global institutions are right to have confidence in Malaysia. He cited the country's total trade grew strongly by 20.8% from January to November 2017 – while in that month alone, gross exports reached double-digit growth of 14.4%, with the highest receipts ever recorded, at RM83.5bil. In the meantime, PM said that Malaysia will never repeat the measure of re-pegging the ringgit as the move will be an unmitigated disaster for the economy and the prosperity of the people. “We have made it very clear that we would never repeat that measure, trusting that while there may be short-term fluctuations, in the longer term the level of the ringgit would reflect the strength of the Malaysian economy,” the Prime Minister said. (The Star) Government Measures to Help Sustain Soft Property Market The Malaysian property market is expected to remain soft in 2018 - but ongoing Government measures will continue to ensure it remains sustainable. Valuation and Property Services Department (JPPH) director-general Nordin Daharom said despite the sluggish property market currently, there are still various ongoing initiatives that will continue to support the housing sector. “Measures remain intact to ensure market sustainability. House prices will continue to record gradual growth. “Major infrastructure projects are catalyst for the property market,” he said during the 11th Malaysian Property Summit 2018 (11MPS). During his presentation, Nordin pointed out that transaction volumes in the nine months of 2017 slipped 4.3% to 229,529 compared with 239,916 in the previous corresponding period. However, in the same period, transaction volumes rose 6.7% to RM102.29bil in the first nine months of 2017 compared with RM95.85bil in the previous corresponding period. The 11MPS is co-organised by the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) and JPPH. (The Star) Page 6 of 10
  10. 24-Jan-18 Japan ’s Central Bank Keeps Stimulus Unchanged, Maintains Inflation Outlook The Bank of Japan maintained its massive monetary stimulus program and kept its price and economic forecasts unchanged. In a small sign of progress, it said inflation expectations had stopped falling. The BOJ will keep its policy interest rates and asset purchases at current levels in its quest to hit 2% inflation, it said in a statement. Inflation expectations remain more or less unchanged, versus a previous assessment that they were weakening, it said, though risks to prices remain "skewed to the downside." The yen strengthened as the market reacted to the BOJ’s view of price expectations. It traded at 110.77 against the dollar as of 1:23 p.m. in Tokyo, versus around 110.90 prior to the BOJ’s release of its policy statement. The central bank forecast the economy to grow 1.4% in the fiscal year starting in April, with inflation of 1.4% over the same period. With the economy growing and inflation slowly but steadily rising, some investors have started to bet that the BOJ is nearing the point where it begins to normalize its ultra-loose monetary policy. The yen gained strength after the BOJ cut its bond purchases earlier this month. (Bloomberg) Fitch Says Will Cut China Local Government Ratings if Data Revisions are Major Fitch Ratings warned that it would take ratings action against Chinese local governments if revisions to their fiscal data were significant, after recent reports on fake economic data deepened concerns about governance and oversight. Local and regional governments in China have long been suspected of cooking up numbers. Blame is often put on ambitious local officials trying to brighten their career prospects by delivering stellar work reports. The agency's comments come after the autonomous region of Inner Mongolia earlier this month said its fiscal revenue for 2016 ought to be 26 percent, or 53 billion yuan ($8.3 billion), less than initially stated. Fitch reacted by downgrading its internal assessment of the creditworthiness of the northern Chinese region. It also cut the ratings on the senior unsecured bonds due 2020 issued by Inner Mongolia High-Grade Highway Construction and Development Co to BBB- from BBB, with a negative outlook. Local and regional governments globally do not have internationally accepted accounting policies. In China, Fitch relies on official fiscal data from provincial and local administrations, which are then approved by the local legislatures. Recent falsification by provincial governments may highlight shortcomings in the auditing process, particularly in terms of central government oversight, Fitch cautioned. (The Star) Philippine Economy Grows 6.7% in 2017 The Philippine economy grew 6.7% in 2017, remaining one of Asia's best performers despite a weaker business process outsourcing industry, the government announced. Government spending ensured the country remained one of Asia's fastest-growing major economies, behind only China and Vietnam, Economic Planning Secretary Ernesto Pernia told reporters. However he said last year's growth was slower than the 6.9% gross domestic product (GDP) rise in 2016, when consumer spending was boosted during elections that propelled President Rodrigo Duterte to power. But the 2017 figure was "a good performance", Pernia said, with China having reported 6.9% 2017 GDP growth last week and Vietnam achieving a 10-yearhigh expansion of 6.81% over the same period. The business processing outsourcing industry, worth $23 billion and employing 1.15 million people, was a "major contributing factor to this decline", Pernia said. (The Star) Singapore Inflation at 0.6% for 2017 Inflation remained mild in 2017 despite stronger economic growth with consumer prices finishing the year by edging up less than expected in December. For the whole of last year, consumer prices rose 0.6%, reversing two consecutive years of negative inflation, while core inflation - which strips out accommodation and private road transport costs - rose to 1.5% from 0.9% in 2016. The consumer price index - the main measure of inflation - edged up 0.4% in December compared with the same month a year earlier, according to Department of Statistics data released. This was below the preceding month's inflation rate of 0.6% and smaller than economists' estimates of a 0.5% rise. The was largely on account of lower private Page 7 of 10
  11. 24-Jan-18 road transport and services inflation , the Monetary Authority of Singapore and Ministry of Trade & Industry said in a joint release. Private road transport inflation slowed to 2.6% in December from 4.1% the month before. This was mainly due to the dissipation of base effects associated with the increase in parking fees in December 2016, as well as a smaller year-ago increase in petrol prices. Services inflation fell to 1.3% last month from 1.6% in November, largely reflecting a decline in airfares and holiday expenses, in addition to a smaller year-ago increase in telecommunication services fees. (The Straits Times) Australia's Consumer Confidence Weakens Australia's consumer confidence declined for the first time in four weeks during the week ended January 21, a weekly survey compiled by the ANZ bank and Roy Morgan Research showed. The consumer confidence index dropped to 119.4 from 123.5 in the preceding week. The current finances sub-index fell a sharp 9.1% to 104.7, partially unwinding gains over the previous three weeks. Views towards future finances fell 2.2%, following a 0.2% decline in the week prior. (RTT) United States TPP Members Reach Agreement on Major Trade Pact Negotiators from 11 Pacific Rim nations agreed Tuesday on a Trans-Pacific Partnership trade deal, the Japanese minister in charge of TPP said, a year after President Donald Trump withdrew the U.S. from the talks. The 11 nations were close to a deal at a summit in Vietnam in November but fell short at the last minute after Canada raised objections. Negotiators gathered again in Tokyo on Tuesday and cleared away the remaining sticking points, said Toshimitsu Motegi, the Japanese minister handling the talks. He said the 11 nations aim to sign the agreement on March 8 in Chile. Among Canada’s issues was its desire for an exemption that it said was needed to protect Canadian cultural products from the effects of free trade. Mr. Motegi said the parties agreed to exchange a side letter with Canada over the issue after the pact comes into effect. The nature of that letter wasn’t clear and Canadian officials couldn’t immediately be reached for comment. The TPP deal came just a half-day after the Trump administration slapped steep tariffs on imported solar panels and washing machines, a move to implement Mr. Trump’s harder line on trade that he has touted since his election campaign. Japan has depicted itself as a free-trade champion that can assume the kind of leadership role previously taken by U.S. administrations. “Now in some parts of the world, there is a move toward protectionism, and I think the TPP-11 is a major engine to overcome such a phenomenon,” Mr. Motegi said. He said the deal was “epoch-making for Japan as well as for the future of the Asia-Pacific region.” He also reiterated a hope frequently expressed by Japanese officials that once the 11-nation TPP is up and running, the U.S. might consider rejoining the deal. Vice President Mike Pence said on a visit to Tokyo last year that as far as the Trump administration is concerned, the TPP is a “thing of the past.” (The Wall Street Journal) Europe and Uni ted Kingdom U.K. Has Smallest December Deficit Since 2000 as VAT Hits Record Britain recorded its smallest budget deficit for any December in 17 years as value-added tax receipts reached a record and the Treasury received a bumper credit from the European Union. Net borrowing narrowed to 2.6 billion pounds ($3.6 billion), well below the median forecast of economists, from 5.1 billion pounds a year earlier, figures showed. It left the shortfall in the first nine months of 2017-18 at 50 billion pounds, 12% lower than a year earlier. The figures leave Chancellor of the Exchequer Philip Hammond on course to keep borrowing in 2017-18 to the 49.9 billion pounds forecast by his budget watchdog in November. But deficits are predicted to persist well into the next decade as a result of Brexit and poor productivity. The challenge facing Hammond was highlighted on Monday when the International Monetary Fund issued a downbeat assessment of U.K. growth prospects. Page 8 of 10
  12. 24-Jan-18 In December , Britain received a 1.2 billion-pound credit from the EU relating to amendments to the 2017 budget. It was the largest such payment in at least 20 years and reflected “adjusted member states’ contributions to reflect updated economic forecasts,” the Office for National Statistics said. VAT, a tax on sales, rose 4.9% from a year earlier to an all-time high of 12.3 billion pounds. The public finances were also aided by lower spending on welfare and departmental costs. (Bloomberg) EU Rebate Helps Reduce UK Public Sector Borrowing The EU helped reduce British government borrowing in December after strong growth in the Eurozone led to a rebate from the bloc. UK public sector net borrowing over the month fell to £2.6bn compared with £5.1bn in December 2016, according to the Office for National Statistics. This was far less than the £5bn expected by analysts and was the lowest level of December borrowing since the millennium. The decline was partly due to a credit of £1.2bn from the EU. The bloc’s budget has been recalculated to reflect new economic forecasts and lower spending, raising contributions from Eurozone countries and reducing the UK’s payments. EU budget contributions are partly based on an estimate of each country’s share of the bloc’s economic output. In November the European Commission downgraded its forecast for UK economic growth in 2017 while increasing its estimates for the euro area. Higher government tax receipts in the UK also contributed to the reduction in borrowing. Value added tax revenues reached their highest level on record in December while taxes on income and wealth were up 4% compared with the same month in 2016. (Financial Times) UK Manufacturing Activity Strengthens: CBI Growth in manufacturing output and domestic and export orders picked up in three months to January, the Industrial Trends survey data from the Confederation of British Industry showed. A net balance of 13% of manufacturers reported that they were more optimistic about the general business situation. Nearly 33% of firms said the volume of output over the past three months was up and 12% said it was down, giving a balance of +21%. The balance of domestic orders came in at 21 percent and that for export orders at 24%, both grew more than the previous quarter. Employment grew at the fastest pace since July 2014 over the last three months, with further growth expected next quarter. A net 20% reported an increase in employment. New orders growth is expected to slow moderately, as growth in domestic orders eases. At the same time, output is expected to grow at a similar pace next quarter. (RTT) German ZEW Economic Sentiment at 8-Month High Germany's economic confidence improved to an eight-month high and the assessment of current situation hit a record in January, indicating an optimistic outlook for the economy in the first half of the year. The ZEW Indicator of Economic Sentiment rose three points to 20.4 in January, survey results from the Mannheim-based think tank ZEW showed. The score exceeded the expected level of 17.7 and was the highest since May, when the reading was 20.6. Nonetheless, the score was below its long-term average of 23.7. The assessment of the current economic situation increased in January, with the corresponding index climbing 5.9 points to 95.2 points. The expected reading was 89.6. With 95.2 out of 100 points, this is the most positive assessment of the current economic situation since the introduction of the survey in December 1991, ZEW President Achim Wambach, said. Wambach noted that private consumption, which was the most important driver of economic growth in 2017, is likely to continue to stimulate growth in the coming six months according to the survey participants. (RTT) Page 9 of 10
  13. 24-Jan-18 Share Buy-Back : 23 January 2018 Company BKAWAN BORNOIL GENM GLOMAC MALAKOF NPC SNTORIA UNIMECH YILAI Bought Back Price (RM) Hi/Lo (RM) 11,500 820,000 1,200,000 30,000 500,000 1,000 210,000 15,000 1,000 19.78/19.76 0.09 5.48/5.45 0.54 0.98/0.97 1.90 0.64/0.625 1.05/1.04 0.75 19.82/19.76 0.09/0.085 5.50/5.44 0.545/0.53 0.98/0.945 1.90/1.81 0.64/0.62 1.05/1.04 0.76/0.745 Total Treasury Shares 35,061,331 124,096,000 272,107,400 5,266,400 5,134,400 3,114,700 1,721,000 6,542,410 7,904,108 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 10 of 10
  14. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) 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-Jan-18 AUTOMOBILE BAUTO 2.25 2.50 Buy 2,606 0.48 14.3 19.9 15.7 11.3 5.1 5.3 2.47 -8.9 1.84 22.3 2.3 MBMR 2.40 2.32 Under Review 938 0.72 23.2 23.9 10.4 10.1 1.9 2.0 2.60 -7.7 2.01 19.4 9.1 PECCA 1.55 1.86 Buy 286 na 11.1 12.5 13.9 12.4 3.6 3.9 1.70 -8.8 1.28 21.1 0.0 SIME 2.90 1.97 Hold 19,722 1.47 12.0 12.7 24.2 22.9 1.0 1.1 2.96 -2.0 1.98 46.8 31.2 UMW 6.95 4.37 Sell 8,120 1.40 20.7 36.9 33.6 18.8 1.4 2.6 6.98 -0.4 4.68 48.6 33.7 BANKS & FINANCIAL SERVICES ABMB 4.20 4.60 Buy 6,502 1.29 30.6 35.6 13.7 11.8 3.8 3.8 4.49 -6.5 3.62 16.0 2.9 AFFIN 2.53 2.70 Hold 4,916 0.93 24.2 28.1 10.4 9.0 3.2 3.2 2.98 -15.0 2.22 13.9 9.5 AMBANK 4.80 5.50 Buy 14,468 1.35 48.6 52.0 9.9 9.2 3.8 3.8 5.70 -15.8 4.06 18.2 8.8 CIMB 6.90 7.50 Buy 63,656 1.57 50.8 56.0 13.6 12.3 4.2 4.1 7.08 -2.5 4.86 42.0 5.5 HLBANK 17.98 19.30 Buy 36,780 0.68 114.2 120.9 15.8 14.9 2.5 2.5 18.20 -1.2 13.06 37.7 5.8 MAYBANK 9.89 10.50 Hold 106,775 1.05 70.9 77.7 14.0 12.7 5.1 5.1 9.89 0.0 8.12 21.8 0.9 PBBANK 20.96 25.10 Buy 80,937 0.63 142.4 149.8 14.7 14.0 2.8 2.9 21.08 -0.6 19.66 6.6 0.9 RHBBANK 5.32 5.70 Buy 21,333 1.59 52.2 53.8 10.2 9.9 2.8 2.8 5.59 -4.8 4.71 13.0 6.4 BURSA 10.76 11.10 Buy 5,784 0.96 39.0 41.5 27.6 26.0 3.2 3.2 10.98 -2.0 8.08 33.2 6.3 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 CONSTRUCTION GADANG 1.17 1.73 Buy 772 1.09 14.3 18.2 8.2 6.4 2.6 2.6 1.37 -14.6 1.01 15.8 5.4 GAMUDA 5.26 6.00 Buy 12,917 0.84 34.5 35.7 15.2 14.7 2.3 2.3 5.52 -4.7 4.58 14.8 6.0 IJM 3.16 2.89 Sell 11,466 0.85 13.7 18.2 23.0 17.4 3.0 3.0 3.61 -12.5 2.71 16.6 3.6 PESONA 0.46 0.55 Buy 320 0.93 5.8 4.8 8.0 9.7 3.3 3.3 0.74 -37.4 0.44 5.7 2.2 SENDAI 0.82 0.55 Sell 640 1.29 9.1 8.5 9.0 9.7 1.2 1.2 1.39 -41.0 0.51 62.4 -5.2 -1.2 SUNCON 2.48 2.65 Buy 3,205 0.56 14.7 16.4 16.9 15.1 2.2 2.4 2.64 -6.1 1.68 47.6 WCT 1.72 1.64 Hold 2,420 0.97 12.6 11.2 13.6 15.4 1.7 1.7 2.48 -30.5 1.46 17.8 6.2 LITRAK 5.80 6.26 Hold 3,061 0.35 45.6 47.1 12.7 12.3 4.3 4.3 6.15 -5.7 5.40 7.4 4.5 ANNJOO 3.46 4.40 Buy 1,785 1.36 45.3 49.2 7.6 7.0 6.4 7.5 3.98 -13.1 2.27 52.4 -10.4 CHINHIN 1.17 1.36 Buy 651 1.12 12.4 12.0 9.4 9.7 4.3 5.1 1.49 -21.5 0.87 34.5 -3.3 ENGTEX 1.09 1.38 Buy 464 0.67 14.2 16.1 7.7 6.8 3.8 5.0 1.52 -28.3 1.07 1.9 -0.9 CARLSBG 15.84 18.06 Buy 4,873 0.78 86.2 88.7 18.4 17.9 5.4 5.6 16.00 -1.0 13.94 13.6 3.5 HEIM 19.12 19.14 Buy 5,776 0.49 84.0 88.3 22.8 21.7 4.0 4.2 19.58 -2.3 15.78 21.2 1.2 AEON 1.65 1.97 Sell 2,317 0.40 6.7 7.7 24.7 21.4 2.4 2.7 2.70 -38.9 1.63 1.2 -6.2 AMWAY 7.76 8.18 Buy 1,276 0.40 43.9 45.2 17.7 17.2 4.9 5.2 8.18 -5.1 7.04 10.2 5.1 F&N 28.48 28.55 Hold 10,439 0.20 155.7 182.7 18.3 15.6 2.1 2.3 28.80 -1.1 22.64 25.8 5.5 Building Materials CONSUMER Brewery Retail HUPSENG 1.11 1.25 Hold 888 0.47 5.4 5.6 20.4 20.0 4.1 4.5 1.28 -13.3 1.08 2.8 1.8 JOHOTIN 1.33 1.75 Buy 413 0.80 12.8 13.5 10.4 9.9 3.8 4.1 1.76 -24.4 1.16 14.7 9.9 NESTLE 106.10 120.50 Buy 24,880 0.40 330.1 373.8 32.1 28.4 2.8 3.2 107.30 -1.1 74.60 42.2 2.8 PADINI 5.19 4.67 Sell 3,415 0.77 27.0 30.0 19.3 17.3 2.4 2.5 5.50 -5.6 2.35 120.8 -1.7 -14.0 POHUAT 1.54 2.01 Buy 338 0.77 23.0 25.5 6.7 6.0 5.2 5.2 2.07 -25.6 1.49 3.4 QL 4.75 3.26 Sell 7,707 0.43 12.8 14.7 37.0 32.2 0.9 1.0 4.84 -1.9 3.26 45.9 9.2 SIGN 0.68 0.92 Buy 156 0.96 6.9 9.2 9.8 7.4 3.7 5.1 1.07 -36.4 0.68 0.0 -3.5 32.78 52.08 Buy 9,360 1.38 187.4 175.4 17.5 18.7 6.1 6.1 51.04 -35.8 31.40 4.4 -18.1 GENTING 9.82 11.53 Buy 37,566 1.49 54.4 59.8 18.1 16.4 1.6 1.6 10.00 -1.8 8.13 20.7 6.7 GENM 5.47 6.51 Buy 30,999 1.54 27.0 30.6 20.2 17.9 1.6 1.8 6.38 -14.3 4.71 16.2 -2.8 2.36 3.34 Buy 3,179 0.76 21.5 26.0 11.0 9.1 6.8 7.6 3.00 -21.3 2.23 5.8 5.4 CCMDBIO 2.85 2.70 Buy 795 0.90 15.0 16.1 19.0 17.7 3.5 3.6 3.03 -5.9 1.90 50.0 12.6 IHH 6.00 6.40 Buy 49,438 0.77 11.9 15.0 50.5 40.1 0.5 0.6 6.42 -6.5 5.42 10.7 2.4 KPJ 0.98 1.12 Buy 4,179 0.50 3.8 4.2 25.9 23.3 2.1 2.3 1.14 -14.0 0.90 8.9 1.0 HARTA 11.90 7.30 Sell 19,670 1.14 25.8 30.5 46.1 39.0 1.0 1.2 12.06 -1.3 4.63 157.0 11.4 KOSSAN 8.61 8.80 Buy 5,506 0.45 38.3 43.0 22.5 20.0 2.2 2.5 8.70 -1.0 5.62 53.2 6.2 SUPERMX 2.43 1.80 Sell 1,593 0.75 15.3 17.9 15.9 13.6 2.2 2.5 2.50 -2.8 1.69 43.8 21.5 TOPGLOV 9.79 9.35 Sell 12,288 0.49 41.6 50.8 23.5 19.3 1.5 1.8 9.96 -1.7 4.56 114.7 22.5 KAREX 1.19 1.00 Sell 1,193 0.72 2.8 5.2 43.1 22.9 0.6 1.1 2.47 -51.8 1.19 0.0 -8.5 SCIENTX 9.00 9.84 Buy 4,353 0.65 68.2 74.9 13.2 12.0 2.3 2.9 9.85 -8.6 6.80 32.4 3.9 SKPRES 1.96 2.20 Hold 2,450 0.68 10.4 14.8 18.9 13.3 2.6 3.8 2.35 -16.6 1.24 58.1 -14.0 ASTRO 2.58 3.10 Buy 13,452 0.93 14.0 13.7 18.5 18.9 5.0 5.2 2.94 -12.2 2.45 5.3 -2.6 MEDIA PRIMA 0.70 0.45 Sell 776 1.23 -3.8 -1.7 na na 0.0 0.0 1.28 -45.3 0.58 20.7 -7.9 STAR 1.40 1.25 Sell 1,033 1.15 6.7 6.7 20.8 20.8 8.6 8.6 2.22 -36.9 1.31 6.9 -15.2 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves INDUSTRIAL MEDIA
  15. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) 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 0.49 0.72 Buy 860 1.44 4.2 4.5 11.7 10.8 2.0 2.0 0.69 -29.0 0.27 81.5 1.0 LCTITAN 5.18 6.66 Buy 11,774 na 63.4 68.2 8.2 7.6 4.8 5.2 6.53 -20.7 4.14 25.1 10.2 MHB 0.84 0.78 Sell 1,336 1.83 -0.5 0.3 na 246.0 0.0 0.0 1.16 -28.0 0.63 33.6 1.2 MISC 7.50 6.56 Sell 33,478 1.13 46.8 52.3 16.0 14.3 4.0 4.0 7.90 -5.1 6.89 8.9 1.1 PANTECH 0.65 0.69 Sell 480 1.17 6.1 6.8 10.5 9.4 4.3 4.8 0.74 -12.8 0.45 43.3 0.0 PCHEM 8.03 8.05 Hold 64,240 0.99 49.8 52.6 16.1 15.3 2.7 2.9 8.28 -3.0 6.80 18.1 4.3 SAPNRG 0.82 1.25 Buy 4,884 2.25 -6.5 -4.9 na na 0.0 0.0 2.10 -61.2 0.67 22.6 14.8 SERBADK 3.38 3.40 Sell 4,512 na 25.7 27.8 13.1 12.2 2.3 2.5 3.60 -6.1 1.51 123.8 4.3 UMWOG 0.35 0.51 Buy 2,834 1.82 0.4 1.2 85.4 27.8 0.0 0.0 0.70 -50.9 0.27 27.8 13.1 UZMA 1.52 1.56 Sell 486 1.04 13.1 14.2 11.6 10.7 0.0 0.0 1.98 -23.2 1.26 20.6 18.8 FGV 2.02 2.01 Sell 7,369 1.54 3.7 4.5 54.5 44.4 2.5 2.5 2.18 -7.3 1.51 33.8 19.5 IJMPLNT 2.43 2.69 Sell 2,140 0.16 9.1 12.5 26.6 19.4 3.3 3.7 3.60 -32.5 2.42 0.4 -11.3 IOICORP 4.67 4.12 Sell 29,346 0.96 21.0 21.8 22.2 21.4 3.4 3.6 4.81 -2.9 4.31 8.4 2.9 KFIMA 1.61 1.89 Buy 454 0.52 13.3 14.5 12.1 11.1 5.6 5.6 1.96 -17.9 1.56 3.2 2.5 KLK 25.10 26.18 Hold 26,731 0.73 120.7 126.3 20.8 19.9 2.4 2.5 25.50 -1.6 23.00 9.1 0.4 SIMEPLT 5.51 6.25 Buy 37,473 na 21.0 22.1 26.2 25.0 2.5 2.7 6.00 -8.2 4.58 20.3 -8.2 TSH 1.65 2.10 Buy 2,278 0.65 9.3 9.6 17.7 17.2 1.4 1.5 1.94 -14.9 1.56 5.8 0.0 UMCCA 6.53 6.73 Sell 1,369 0.36 22.8 34.8 28.7 18.7 2.6 2.8 7.08 -7.8 5.76 13.3 0.3 GLOMAC 0.55 0.50 Sell 433 0.64 3.0 4.4 18.4 12.3 3.7 3.7 0.68 -19.5 0.53 3.8 -1.7 HUAYANG 0.63 0.59 Sell 222 0.96 1.8 3.4 34.4 18.5 0.8 0.8 1.21 -47.9 0.60 5.9 3.3 IBRACO 0.80 0.92 Hold 397 na 9.1 12.4 8.8 6.4 5.0 6.3 0.98 -17.9 0.76 6.0 -1.8 IOIPG 2.05 2.02 Hold 11,288 0.83 16.5 16.3 12.4 12.6 2.9 2.9 2.22 -7.7 1.79 14.5 10.8 MAHSING 1.46 1.69 Buy 3,543 0.98 13.0 12.6 11.2 11.6 4.5 4.5 1.64 -11.0 1.38 5.8 0.7 SIMEPROP 1.60 1.61 Sell 10,881 na 9.2 9.1 17.4 17.5 1.3 1.3 1.78 -10.1 1.04 53.8 -10.1 SNTORIA 0.64 0.76 Buy 362 0.23 8.3 8.6 7.7 7.5 1.6 1.6 0.91 -29.6 0.60 6.7 -7.9 SPB 4.84 5.28 Hold 1,663 0.68 21.2 26.1 22.9 18.5 2.5 2.5 5.50 -12.0 4.32 12.0 -1.2 SPSETIA 3.28 3.77 Buy 11,244 1.06 21.3 21.9 15.4 15.0 3.7 3.7 4.38 -25.2 3.06 7.2 -18.0 SUNWAY 1.71 1.74 Hold 8,372 0.86 11.9 12.6 14.4 13.6 2.9 3.5 1.96 -12.7 1.28 33.4 4.9 SUNREIT 1.72 1.87 Hold 5,066 0.85 10.0 10.7 17.1 16.1 5.8 6.2 1.90 -9.5 1.64 4.9 -9.5 CMMT 1.40 1.72 Buy 2,853 0.71 8.6 8.9 16.2 15.7 6.4 6.6 1.83 -23.5 1.39 0.7 -23.5 PLANTATIONS PROPERTY REIT POWER & UTILITIES MALAKOF 0.98 1.16 Buy 4,895 0.83 6.0 6.8 16.4 14.4 7.1 7.1 1.32 -25.8 0.86 14.0 0.0 PETDAG 24.80 22.08 Sell 24,638 0.35 105.1 105.7 23.6 23.5 3.1 3.2 25.70 -3.5 21.00 18.1 2.2 PETGAS 18.16 19.10 Buy 35,934 0.84 98.8 99.5 18.4 18.2 3.8 3.9 21.04 -13.7 15.82 14.8 3.9 TENAGA 15.86 17.38 Buy 89,863 0.59 129.9 127.9 12.2 12.4 2.9 2.9 15.98 -0.8 13.00 22.0 3.9 YTLPOWR 1.32 1.17 Sell 10,465 0.82 9.6 10.1 13.7 13.1 3.8 3.8 1.50 -12.0 1.11 18.9 2.3 TELECOMMUNICATIONS AXIATA 5.59 5.75 Hold 50,579 1.63 16.0 19.5 34.9 28.6 1.4 2.8 5.82 -4.0 4.24 31.8 1.8 DIGI 4.92 5.15 Hold 38,253 0.93 19.7 20.3 25.0 24.2 4.0 4.1 5.19 -5.2 4.36 12.8 -3.5 MAXIS 6.06 6.10 Hold 47,332 1.03 26.2 25.7 23.1 23.6 3.3 3.3 6.60 -8.2 5.48 10.6 0.8 TM 6.00 7.20 Buy 22,548 0.53 23.2 24.9 25.9 24.1 3.5 3.7 6.69 -10.3 5.85 2.6 -4.8 ELSOFT 2.70 2.70 Hold 743 0.77 15.0 15.7 18.0 17.2 3.9 4.1 2.95 -8.5 1.52 77.3 0.0 IRIS 0.24 0.25 Buy 581 2.19 0.6 0.7 42.5 35.2 0.0 0.0 0.25 -4.1 0.12 104.3 27.0 TECHNOLOGY Semiconductor & Electronics INARI 3.42 3.35 Hold 7,035 1.00 14.2 15.9 24.1 21.5 2.9 3.3 3.82 -10.5 1.75 95.8 0.6 MPI 11.48 12.95 Hold 2,283 0.98 105.5 121.2 10.9 9.5 2.8 2.8 14.52 -20.9 7.90 45.3 -9.0 UNISEM 3.19 3.25 Sell 2,341 1.32 27.1 28.7 11.8 11.1 3.8 3.8 4.25 -24.9 2.49 28.1 -12.6 TRANSPORTATION Airlines AIRASIA 4.13 3.83 Buy 13,802 1.23 38.3 39.8 10.8 10.4 1.2 1.5 4.18 -1.2 2.43 70.0 23.3 AIRPORT 9.20 8.47 Sell 15,265 1.44 19.7 20.1 46.6 45.7 1.1 1.3 9.45 -2.6 6.15 49.6 4.7 Freight & Tankers PTRANS 0.29 0.44 Buy 365 na 2.3 3.6 12.7 8.1 2.4 3.7 0.38 -24.0 0.15 99.4 3.6 TNLOGIS 1.28 1.80 Buy 585 1.19 13.6 14.0 9.4 9.1 3.9 3.9 1.83 -30.2 1.27 0.8 -4.5 WPRTS 3.62 4.02 Hold 12,344 0.64 15.5 20.0 23.3 18.1 3.2 4.1 4.26 -15.0 3.34 8.4 -2.2 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) Recom Market Cap. (S$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 26.84 23.30 Sell 68,647 1.24 189.1 214.6 14.2 12.5 2.2 2.2 26.9 -0.2 18.12 48.1 8.0 OCBC 13.24 13.50 Buy 55,416 1.22 104.1 110.6 12.7 12.0 6.7 7.7 13.3 -0.4 9.26 43.0 6.9 UOB 28.37 26.90 Hold 47,181 1.07 215.4 229.3 13.2 13.2 2.5 2.5 28.4 -0.1 20.38 39.2 7.3 PLANTATIONS WILMAR 3.21 3.63 Hold 20,539 0.84 29.9 31.8 10.7 10.1 2.5 2.8 4.0 -19.8 3.06 4.9 3.9 IFAR 0.41 0.53 Hold 581 1.01 5.2 5.7 7.8 7.1 3.1 3.5 0.6 -30.2 0.37 11.0 3.8 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
  16. SECTOR UPDATE Wednesday , January 24, 2018 FBMKLCI: 1,838.04 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Underweight Automotive Sector (Maintained) 2 n d Year of Decline Abel Goon Tel: +603-2072 1277 ext. 1641 abelgoon@ta.com.my www.taonline.com.my Aggressive Marketing Boosts TIV Total Industry Volume (TIV) in December came in way below expectations at 54.7k units (MoM: +11.3%, YoY: -15.6%). The MoM recovery was mainly due to aggressive marketing campaigns as marques cleared inventories ahead of the new year. Mazda (MoM: -29.6%, YoY: +17.9%) bucked the monthly recovery trend in spite of the all-new CX-5 launch. We believe this may be due to the long waiting period for the CX-5, which lead to cancellations. Meanwhile, MAA attributed the YoY decline in vehicles sales to floods in certain states in Peninsular Malaysia, coupled with an early start in excessive offers in 2017. YTD TIV of 576.6k units (-0.6%) fell short of expectations at 98.3% and 97.7% of ours and MAA’s forecast respectively. Looking ahead, we expect TIV in January and February to fall, in-line with the seasonal trend. Commercial Vehicles Decline, Passenger Vehicles Flat YTD, commercial vehicles’ decline of 5.4% was the main reason for TIV decline of 0.6% in 2017. The decline was mainly due to higher USD/MYR rate which caused many businesses to delay vehicle purchases. On the other hand, passenger vehicles registered flat TIV despite the launch of various highly anticipated models, which include 1) 3rd Gen Perodua Myvi, 2) Mazda CX-5, 3) Honda CR-V, and 4) Proton Iriz and aggressive marketing campaigns. That said, we note that Honda (actual: 109.5k units, forecast: 100k units) and Perodua (actual: 204.8k units, forecast: 202k units) managed to beat 2017 sales targets. All in, we believe the main dampener is still stringent HP loan requirements coupled with high household debt. Furthermore, we believe government policy is more focused on house purchases as opposed to vehicle purchases. Thus, we would not expect huge growth in TIV going forward. MAA Lowers Forecast Despite the launch of the all-new Perodua Myvi in November, MAA reduced its 2018 TIV forecast to 590k units (+2.3% YoY) from 619k units (+4.9% YoY) previously. Its forecast is boosted by 1) strong expected GDP growth of 5.0%-5.5% and 2) aggressive promotional campaigns but dampened by 1) continuation of strict lending guidelines for HP loans, 2) possible OPR hike and 3) ride-hailing services increasing in popularity. It also reduced 20192021 forecasts to 601.8k/614.7k/628.3k units from 650.5k/663.5k/677.5k units. Besides that, it introduced 2022 TIV forecast of 642.7k units. In-line with the lower than expected 2017 TIV, we revise downwards our 2018 TIV forecast to 591k units (+1.9%) as we include Perodua’s sales forecast of 209k units and assume a more moderate growth for Honda vehicles given the exceptional sales in 2017. Maintain Underweight We maintain our Underweight stance on the industry. Our forecast reflects a slight recovery in TIV as we anticipate consumer sentiment to gradually improve in 2018. Furthermore, new models, such as the Toyota CH-R and the 3rd Gen Myvi, will excite the market. On the other hand, TIV growth will be partially dampened by sustained stringent HP loan requirements. We maintain Buy on Pecca with higher TP of RM1.86 based on higher 16x CY18 PER (previous: 14.5x) which is in-line with its historical mean (Figure 18) and still a 20% discount to its peer Interhides PCL. BAuto is rated as Buy with TP of RM2.50 due to handsome dividends and earnings growth from CX-5 launch. Meanwhile, Sime Darby and UMW are rated as Sell with TP of RM1.97 and RM4.37 respectively whilst we place MBM Under Review. Page 1 of 6
  17. 24-Jan-18 Figure 1 : Breakdown of TIV Passenger Commercial TIV Dec-16 57,602 7,231 64,833 Nov-17 43,152 6,032 49,184 Dec-17 % MoM 48,077 11.4 6,652 10.3 54,729 11.3 % YoY (16.5) (8.0) (15.6) 2016 514,600 65,524 580,124 2017 514,680 61,955 576,635 % YoY 0.0 (5.4) (0.6) Dec-17 % MoM % YoY 2016 2017 % YoY Source: MAA, TA Research Figure 2: Breakdown of TIV by segments Passenger vehicles National Perodua Proton Total Dec-16 Nov-17 24,625 7,223 31,848 16,636 4,810 21,446 20,180 4,802 24,982 21.3 (0.2) 16.5 (18.1) (33.5) (21.6) 207,110 72,290 279,400 204,887 70,992 275,879 (1.1) (1.8) (1.3) Non-national BMW Mercedes Honda Nissan Toyota Mazda VW Others Total 915 849 11,461 3,833 5,720 595 207 2,174 25,754 1,000 1,019 10,482 1,383 4,379 968 650 1,825 21,706 1,010 1,115 11,221 1,500 4,850 678 740 1,981 23,095 1.0 9.4 7.1 8.5 10.8 (30.0) 13.8 8.5 6.4 10.4 31.3 (2.1) (60.9) (15.2) 13.9 257.5 (8.9) (10.3) 9,000 11,799 91,830 33,219 44,586 12,182 6,048 26,536 235,200 10,618 12,067 109,511 19,949 47,615 9,454 6,536 23,051 238,801 18.0 2.3 19.3 (39.9) 6.8 (22.4) 8.1 (13.1) 1.5 Grand Total 57,602 43,152 48,077 11.4 (16.5) 514,600 514,680 0.0 Commercial vehicles Hino Isuzu Mitsubishi Nissan Toyota Mazda Others Total Dec-16 1,375 1,440 739 971 1,627 8 1,071 7,231 Nov-17 340 988 654 738 2,384 42 886 6,032 % YoY (43.1) (26.9) (2.7) (21.3) 46.8 312.5 (14.7) (8.0) 2016 5,901 12,517 7,887 7,487 19,171 311 12,250 65,524 2017 5,002 10,838 6,726 7,205 21,877 276 10,031 61,955 % YoY (15.2) (13.4) (14.7) (3.8) 14.1 (11.3) (18.1) (5.4) Dec-17 % MoM 782 130.0 1,052 6.5 719 9.9 764 3.5 2,388 0.2 33 (21.4) 914 3.2 6,652 10.3 Source: MAA, TA Research Figure 3: Breakdown by main manufacturers/distributors UMW Toyota (Passenger cars) Lexus Toyota (Commercial) Total Perodua Grand total Dec-16 5,720 186 1,627 7,533 24,625 32,158 Nov-17 4,379 105 2,384 6,868 16,636 23,504 Dec-17 % MoM 4,850 10.8 108 2.9 2,388 0.2 7,346 7.0 20,180 21.3 27,526 17.1 % YoY (15.2) (41.9) 46.8 (2.5) (18.1) (14.4) 2016 44,586 1,353 19,171 65,110 207,110 272,220 2017 47,615 953 21,877 70,445 204,887 275,332 % YoY 6.8 (29.6) 14.1 8.2 (1.1) 1.1 Tan Chong Nissan (Passenger cars) Renault Nissan (Commercial) Total Dec-16 3,833 44 971 4,848 Nov-17 1,383 49 738 2,170 Dec-17 % MoM 1,500 8.5 60 22.4 764 3.5 2,324 7.1 % YoY (60.9) 36.4 (21.3) (52.1) 2016 33,219 599 7,487 41,305 2017 19,949 592 7,205 27,746 % YoY (39.9) (1.2) (3.8) (32.8) Bermaz Auto Mazda (Passenger cars) Mazda (Commercial) Total Dec-16 595 8 603 Nov-17 968 42 1,010 Dec-17 % MoM 678 (30.0) 33 (21.4) 711 (29.6) % YoY 13.9 312.5 17.9 2016 12,182 311 12,493 2017 9,454 276 9,730 % YoY (22.4) (11.3) (22.1) MBM Resources VW Volvo Mitsubishi Hino Daihatsu Total Dec-16 207 157 739 1,375 66 2,544 Nov-17 650 124 654 340 96 1,864 Dec-17 % MoM 740 13.8 157 26.6 719 9.9 782 130.0 74 (22.9) 2,472 32.6 % YoY 257.5 0.0 (2.7) (43.1) 12.1 (2.8) 2016 6,048 947 7,887 5,901 885 21,668 2017 6,536 1,021 6,726 5,002 803 20,088 % YoY 8.1 7.8 (14.7) (15.2) (9.3) (7.3) Source: MAA, TA Research Page 2 of 6
  18. Jan-11 Jan-14 Sep-14 Sep-17 May-17 Jan-17 Sep-16 May-16 Jan-16 Sep-15 May-15 Jan-15 Oct-17 Jul-17 Apr-17 Jan-17 Oct-16 Jul-16 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Oct-14 Jul-14 Apr-14 Jan-14 YoY Growth (RHS) Nov-17 Sep-17 Jul-17 May-17 Others Mar-17 Jan-17 Nov-16 Sep-16 Jul-16 Honda May-16 Mar-16 Jan-16 Nov-15 Nissan Sep-15 Jul-15 May-15 Mar-15 Toyota Jan-15 Sep-14 National Nov-14 May-14 Jan-14 Oct-13 TIV (LHS) Jul-14 May-14 Perodua Mar-14 Sep-13 Jul-13 Apr-13 unit Nov-13 May-13 Jan-13 Oct-12 Jul-12 Apr-12 Jan-12 Oct-11 Jul-11 Apr-11 Jan-11 80,000 Sep-13 Jul-13 May-13 Jan-13 Sep-12 May-12 Jan-12 Sep-11 May-11 Jan-11 70% Mar-13 Proton Jan-13 Nov-12 Sep-12 Jul-12 % May-12 45 Mar-12 Jan-12 Nov-11 Sep-11 Jul-11 May-11 Mar-11 24-Jan-18 Figure 4: TIV vs. YoY growth 40% 70,000 30% 60,000 20% 50,000 10% 40,000 0% 30,000 -10% 20,000 -20% 10,000 -30% 0 -40% Source: MAA, TA Research Figure 5: Passenger Vehicle Market Share (National vs. non-national manufacturers) 75% Non-National 65% 60% 55% 50% 45% 40% 35% 30% Source: MAA, TA Research Figure 6: Total Market Share by Brand Mazda 40 35 30 25 20 15 10 5 0 Source: MAA, TA Research Page 3 of 6
  19. 24-Jan-18 Figure 7 : TIV (MoM change) Jan + + + - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Feb + + - Mar + + + + + + + + + + + + + + *+ : increase, - : decrease Apr + - May + + + + + + + + + Jun + + + + + + + + + + - Jul + + + + + + + + + - Aug + + + + + + + Sep + + + + - Oct + + + + + + + + Nov + + + + + + + Dec + + + + + + + + + + + Hari Raya Month Source: MAA, TA Research Figure 8: Cumulative Sales Volume (YoY growth) 12M17 11M17 10M17 19% 22% 23% Honda -33% -31% -31% 300,000 200,000 9% 10% 11% -1% Perodua -20% -10% 2% 0% 100,000 50,000 6% 10% 0 20% 30% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: MAA, TA Research Source: MAA, TA Research Figure 10: Monthly Sales Volume by Brand (unit) Figure 11: Market share (%) 35 Source: MAA, TA Research Toyota Nissan Honda Mazda 7.4 4.3 4.1 10 11.1 9.8 8.8 15 11.3 13.8 13.2 20 5 0 0 Perodua Dec-17 25 8,770 7,362 8,313 4,804 2,121 2,264 7,347 6,763 7,238 7,223 4,810 4,802 5,000 Proton Nov-17 30 15,000 10,000 Dec-16 40 603 1,010 711 20,000 % 11,461 10,482 11,221 25,000 Dec-17 38.0 33.8 36.9 Nov-17 24,625 16,636 20,180 Dec-16 0.9 2.1 1.3 -30% 150,000 1% 1% -2% Proton 30,000 2H 250,000 Toyota -40% 1H 350,000 17.7 21.3 20.5 Nissan Figure 9: TIV On Half Year Basis (unit) Others Proton Perodua Toyota Nissan Honda Mazda Source: MAA, TA Research Page 4 of 6
  20. 24-Jan-18 Figure 12 : YTD Sales Volume Breakdown by Brand (unit) 2017 40 35 200,000 15.8 19.0 5 0 2.2 1.7 7.0 4.7 11.0 12.1 15 12.5 12.3 91,938 84,869 20 10 12,493 9,730 40,706 27,154 63,757 69,492 72,290 70,992 50,000 25 15.8 14.7 91,830 109,511 30 150,000 100,000 2017 35.7 35.5 250,000 2016 % 207,110 204,887 2016 Figure 13: YTD Market Share (%) 0 Proton Perodua Toyota Nissan Honda Mazda Others Proton Perodua Toyota Nissan Honda Mazda Others Source: MAA, TA Research Source: MAA, TA Research Figure 14: National vs. Non-national (Sales Volume) Figure 15: National vs. Non-national (Market share) Non-National Source: MAA, TA Research Figure 16: Forecast for Passenger and Commercial Cars Figure 17: Forecast for TIV Source: MAA, TA Research Source: MAA, TA Research Sep-17 Jan-17 May-17 Sep-16 Jan-16 May-16 Sep-15 Jan-15 May-15 Sep-14 Jan-14 Source: MAA, TA Research May-14 Sep-13 Jan-13 May-13 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 15,000 Sep-12 20,000 Jan-12 25,000 May-12 30,000 Sep-11 35,000 Non-National 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jan-11 40,000 National May-11 National 45,000 Page 5 of 6