Bursa Malaysia Daily Market Report - 26 September

Transcription

1. Tuesday , 26 September, 2017 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 . P o h H u a t Re s o u rc e s H o l d i n g s Be r h a d : O n T ra c k f o r R e c o r d Y e a r Te ch n ic al R ep o rt s 1 . Da ily T e c h n ic a l S to c k P ic k s 2 . Da ily S to c k Sc re e n 3 . F o re ig n T e c h n ic a l S to c k Wa tc h ( A U S , H K & 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 – 2031 6608 www.ta.com.my
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Daily Market Commentary Tuesday , 26 September 2017 For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my KLSE Market Statistics (25.09.2017) Volume (mil) +/-chg (RMmn) Main Market 1,775.8 -664.6 2,250.6 Warrants 156.6 -50.5 17.3 ACE Market 525.6 -74.0 95.4 Bond 2.7 -0.5 0.8 ETF 0.1 0.04 0.1 Total 2,460.8 2,364.3 Off Market 61.6 10.3 162.1 Value +/-chg -20.4 -1.8 -27.0 -0.6 0.02 119.7 Major Indices Index +/- chg Malaysia FBMKLCI 1,769.14 FBMEMAS 12,602.52 FBMSCAP 17,057.50 September Futures 1,759.50 Other Markets DOW JONES 22,296.09 NASDAQ (US) 6,370.59 FTSE (UK) 7,301.29 NIKKEI (JAPAN) 20,397.58 KOSPI (KOREA) 2,380.40 HANG SENG (HK) 27,500.34 FSSTI (S'PORE) 3,215.91 SET (BANGKOK) 1,667.59 JCI (JAKARTA) 5,894.61 SHANGHAI 3,341.55 SHENZHEN 1,963.90 AUSTRALIA 5,683.73 @ @ @ @ @ @ @ @ @ @ Review & Outlook Up Down 200 407 30 137 25 77 1 4 3 1 259 626 % chg % YTD chg -1.90 -23.20 -101.90 -5.50 -0.11 -0.18 -0.59 -0.31 7.76 9.91 15.92 7.58 -53.50 -56.33 -9.35 101.13 -8.31 -380.19 -4.34 8.54 -17.10 -10.98 -24.69 1.59 -0.24 -0.88 -0.13 0.50 -0.35 -1.36 -0.13 0.51 -0.29 -0.33 -1.24 0.03 12.82 18.34 2.22 6.71 17.47 25.00 11.63 8.08 11.29 7.67 -0.26 0.32 (RM) 0.90 1.03 0.95 9.10 0.08 0.58 6.39 7.80 4.40 0.90 Counter Mkt Cap. (RM’mn) MAYBANK 103,343 TENAGA 81,490 SIME 61,888 CIMB 57,119 HLBANK 32,482 GENM 31,346 IOICORP 28,592 RHBBANK 20,692 PPB 19,964 HLFG 19,400 Blue chips on Bursa Malaysia extending profit-taking consolidation amid cautious trade on Monday, in tandem with key regional market as investors digested elections in Germany over the weekend. The KLCI ended flat at 1,769.14, after oscillating between high of 1,772.19 and low of 1,768.16, as losers thrash gainers 626 to 259 on turnover of 2.46bn shares worth RM2.36bn. The current subdued trading sentiment should persist as investors refrain from trading commitments amid lack of fresh positive catalyst locally and the political uncertainty in Europe. As for the index, immediate support for the index is revised lower at the end-August low of 1,757, followed by stronger support at the mid-July low of 1,751. Immediate resistance will be from the 13 Sept high of 1,793 and 16 June peak of 1,796, with tougher hurdles from 1,800, 1,815 and subsequently 1,823, the May 2015 peak. Technically, weakening trend indicators implies further correction potential on Affin Holdings shares towards the 50%FR (RM2.54), with better supports seen at the lower Bollinger band (RM2.50) and 38.2%FR (RM2.43), upon a breakdown. Similarly AMMB Holdings could ease lower towards the 23.6%FR (RM4.32), with a breakdown to test the lower Bollinger band (RM4.20), with the low of 14/11/16 (RM3.90) anchoring as the crucial support. Immediate upside hurdle rest at upper Bollinger band (RM4.62). News Bites • • • • • • Top 10 KLCI Movers Based on Mkt Cap. Off Market (mn) YONGTAI-PA 14.5 WZSATU 10.0 LAYHONG 9.0 SIME 8.0 LUSTER-WB 4.0 GLBHD 4.0 TM 3.0 KLCC 2.5 BIMB 1.9 YONGTAI-WA 1.0 Value/ Volume 1.27 0.11 0.18 0.31 1.17 0.96 2.63 Chg Vol. (RM) (mn) -0.07 14.26 -0.04 11.37 -0.03 2.66 -0.04 61.02 -0.02 0.44 -0.07 5.49 -0.05 0.99 -0.12 0.79 -0.02 0.23 -0.14 0.04 • • • • • • • • • • • Important Dates MASTEEL - 1:5 Bonus Issue - BI of 53.8m shares. 1 bonus share for every 4 existing shares. Ex-Date: 26/09/2017. Entitlement Date: 28/09/2017. LISTING ON: 29/09/2017. CWG - 1:2 Rights Issue - RI of up to 42.1m shares. 1 rights share for every 2 existing shares held, at an issue price of RM0.50 per rights share. Application Closed: 02/10/2017. LISTING ON: 16/10/2017. MISC Bhd plans to dispose of its 45% equity interest in Centralised Terminals Sdn Bhd (CTSB) to Dialog Group Bhd for RM193mn. Lotte Chemical Titan Holding Bhd said that the damage caused by a fire at the site of its new TE3 project in Pasir Gudang, Johor is minimal. Prasarana Malaysia Bhd and Singapore-based SMRT Corp Ltd have signed a MoU to set up a joint-venture company for the Johor BahruSingapore Rapid Transit System Link. SP Setia Bhd has raised RM434mn under a sukuk programme. Alliance Bank Malaysia Bhd will assume the listing status of Alliance Financial Group Bhd (AFG) on the Main Market of Bursa Malaysia beginning 26 Sept. Damansara Realty Bhd's 95.5%-owned TMR Urusharta (M) Sdn Bhd and Kumpulan Perubatan (Johor) Sdn Bhd has won a RM27.6mn contract to provide medical services for development facilities. Iris Corp Bhd and Dipon Gulf Infotech Consultancy LLC have agreed to an out-of-court settlement for a sum of RM16.1mn and costs of RM65K at a rate of 5% per year. FoundPac Group Bhd is acquiring a 75% stake in laser stencils maker Dynamic Stencil Sdn Bhd for RM16.5mn. Ho Wah Genting Bhd is teaming up with Switzerland's Dufry Group to jointly operate a duty-free shop in SkyAvenue mall at Genting Highlands Resort, Pahang. HLT Global Bhd is planning a 1-for-2 bonus issuance of up to 133.0mn new shares in the company. PLB Engineering Bhd has proposed a 1-for-4 bonus issue of up to 22.8mn shares. . Idimension Consolidated Bhd is planning to place out new shares to third party investors to raise up to RM4.8mn. Japanese Prime Minister Shinzo Abe ordered his cabinet to compile new economic stimulus measures in a package worth around 2tn yen ($17.80bn) by the end of the year. Both Singapore's headline and core inflation came in lower than expected in August. The European Central Bank is growing increasingly confident that inflation will rise back to its target but patience is still needed, ECB President Mario Draghi said. Bank of England officials reiterated warnings about the rapid growth of household borrowing in the U.K. German business confidence unexpectedly weakened for a second month in September, in a sign that Europe's largest economy may struggle to improve on its current brisk pace of expansion. Exchange Rate USD/MYR 4.2003 0.0098 USD/JPY 112.11 0.0900 EUR/USD 1.188 -0.0090 Commodities Futures Palm Oil (RM/mt) 2,686.00 -51.00 Crude Oil ($/Barrel) 52.13 1.47 Gold ($/tr.oz.) 1,309.50 13.40 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 , September 26, 2017 FBMKLCI: 1,769.14 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks TA Research Team Coverage Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my M a r k e t V i e w Subdued Trading Sentiment Should Persist Today Blue chips on Bursa Malaysia extending profit-taking consolidation amid cautious trade on Monday, in tandem with key regional market as investors digested elections in Germany over the weekend. The KLCI ended flat at 1,769.14, after oscillating between high of 1,772.19 and low of 1,768.16, as losers thrash gainers 626 to 259 on turnover of 2.46bn shares worth RM2.36bn. Immediate Supports Revised Lower at 1,757/1,751 The current subdued trading sentiment should persist as investors refrain from trading commitments amid lack of fresh positive catalyst locally and the political uncertainty in Europe. As for the index, immediate support for the index is revised lower at the endAugust low of 1,757, followed by stronger support at the mid-July low of 1,751. Immediate resistance will be from the 13 Sept high of 1,793 and 16 June peak of 1,796, with tougher hurdles from 1,800, 1,815 and subsequently 1,823, the May 2015 peak. SELL Affin & AMMB Technically, weakening trend indicators implies further correction potential on Affin Holdings shares towards the 50%FR (RM2.54), with better supports seen at the lower Bollinger band (RM2.50) and 38.2%FR (RM2.43), upon a breakdown. Similarly AMMB Holdings could ease lower towards the 23.6%FR (RM4.32), with a breakdown to test the lower Bollinger band (RM4.20), with the low of 14/11/16 (RM3.90) anchoring as the crucial support. Immediate upside hurdle rest at upper Bollinger band (RM4.62). Political Uncertainty Weight on Asian Market Major Asian indexes were mixed on Monday trade after elections in Germany and New Zealand set the stage for periods of political uncertainty in both countries. Chancellor Angela Merkel’s conservative alliance won Sunday’s German election, essentially guaranteeing her a fourth term as chancellor, though a strong showing for the nationalist Alternative for Germany party suggests Europe’s largest economy could face political turbulence. On New Zealand front, the ruling National Party won the largest number votes in Saturday’s election but without a ruling majority and now faces a round of coalition building that could last days or weeks. Japan’s Nikkei share average rose on Monday as a weaker yen lifted exporters, while expectations of economic stimulus measures after an election next month supported overall sentiment. The Nikkei ended up 0.5 percent at 20,397.58. In down under, the S&P/ASX 200 advanced 0.02 percent, with the industrials and health care sub-indexes leading gains. Across the Korean Strait, the Kospi reversed early gains to slide 0.36 percent, falling for the fifth straight session in a row. Meanwhile, China stocks also fell on Monday, as developers slumped after a new round of government curbs to rein in the heated housing market. The blue-chip CSI300 index fell 0.5 percent, to 3,817.79 points, while the Shanghai Composite Index lost 0.3 percent to 3,341.55 points. Page 1 of 7
4. 26-Sep-17 Technology Sector Drag Wall Street Lower U .S. stocks fell on Monday as selling in large-cap technology shares intensified, after North Korea accused the United States of having declared war on the isolated country. North Korea’s foreign minister said in a statement at the United Nations that U.S. President Donald Trump's latest comments amounted to declaring war on North Korea. Facebook was among the biggest decliners in the S&P 500 technology sector and the broader index, shedding 4.5 percent, to 162.87, its largest percentage decline since November. Meanwhile, shares of energy companies rose with oil prices, as U.S. crude for November delivery jumped 3.1 percent to USD52.22 a barrel, notching oil’s eighth gain in 11 sessions. Oil prices have rebounded recently as data have suggested an easing of a global supply glut and analysts have said the Organization of the Petroleum Exporting Countries looks likely to extend its production-cut deal. The Dow Jones Industrial Average fell 53.5 points, or 0.24 percent, to 22,296.09, the S&P 500 lost 5.56 points, or 0.22 percent, to 2,496.66 and the Nasdaq Composite dropped 56.33 points, or 0.88 percent, to 6,370.59. Page 2 of 7
5. 26-Sep-17 N e w s I n B r i e f Corporate MISC Bhd plans to dispose of its 45 % equity interest in Centralised Terminals Sdn Bhd (CTSB) to Dialog Group Bhd for RM193mn. CTSB owns an 80% stake in Langsat Terminal (One) Sdn Bhd and Langsat Terminal (Two) Sdn Bhd, which are centralised tankage and tank terminal facilities serving the oil, gas and petrochemical industry in Johor. (Bursa Malaysia) Comments: We are largely neutral on this announcement given limited financial impact, and because management has expressly articulated its strategy to divest non-core businesses. Recall that back in Aug-15, MISC disposed its 50% stake in VTTI tank terminals to Vitol Group for USD830mn. The disposal of CTSB marks MISC's complete exit from the tank terminal business. We estimate that CTSB has negligible contribution to MISC's bottomline. Nevertheless, the cash proceeds of RM137mn (less repayment of shareholder’s advances by Dialog) will boost MISC's dividend capacity. To recap, we estimate stable FY17E DPS of 30 sen (RM1.3bn payout) despite near term earnings weakness. This is underpinned by current healthy net gearing of 0.2x (net debt: RM5.9bn). Maintain Sell with TP of RM6.56. Lotte Chemical Titan Holding Bhd said that the damage caused by a fire at the site of its new TE3 project in Pasir Gudang, Johor last Wednesday (Sept 20) is minimal, with losses estimated at not more than RM50K to replace burnt cables. It has resumed the preparation of the TE3 project for commissioning and the commercial startup is on target by 4QCY17. (Bursa Malaysia) Comments: This announcement is within our expectations (please refer to report dated 25th Sept). There is a possibility the cost of RM50K to replace burnt cables may be capitalized, or potentially claimed from TE3's contractor or insurance. Nevertheless, in the worst case scenario that the cost will be charged to TTNP's profit, the impact will be minimal, at 0.005% of FY17E bottomline. We maintain our TP: RM6.88 and Buy recommendation. Prasarana Malaysia Bhd and Singapore-based SMRT Corp Ltd have signed a memorandum of understanding to set up a joint-venture company as the operating company for the Johor Bahru-Singapore Rapid Transit System Link. (Bernama) SP Setia Bhd has raised RM434mn under a sukuk programme with a nominal value of up to same sum, to part finance the purchase of five parcels of freehold land in Seberang Perai, Penang. The sukuk programme will have a tenure of up to 10 years from the date of the first issue. (Bursa Malaysia) Alliance Bank Malaysia Bhd will assume the listing status of Alliance Financial Group Bhd (AFG) on the Main Market of Bursa Malaysia beginning 26 Sept, following which AFG will be delisted. (Bursa Malaysia) AirAsia Bhd said two additional parties 1) Singapore-listed Plato Capital Ltd and 2) private equity firm Oxley Capital Ltd are keen to partner the group and China Everbright Group in setting up a low-cost carrier in China known as AirAsia (China). (The Edge) Damansara Realty Bhd's 95.5%-owned TMR Urusharta (M) Sdn Bhd and Kumpulan Perubatan (Johor) Sdn Bhd has won a RM27.6mn contract to provide medical services for development facilities for Petronas' Refinery and Petrochemical Integrated Development project in Pengerang, Johor. It will provide the management of medical services for 39 months from Sept 25, with additional optional services worth RM7.8mn. (Bursa Malaysia) Iris Corp Bhd and Dipon Gulf Infotech Consultancy LLC have agreed to an out-of-court settlement for a sum of RM16.1mn and costs of RM65K at a rate of 5% per year, which will be formalised in a deed of settlement. The settlement is for Dipon's commercial suit for money allegedly owed by Iris for a machine readable passport project in United Arab States Page 3 of 7
6. 26-Sep-17 and in Saudi Arabia . (Bursa Malaysia) FoundPac Group Bhd is acquiring a 75% stake in laser stencils maker Dynamic Stencil Sdn Bhd for RM16.5mn, to expand its product offering in the electrical and electronics segment. The purchase will be funded via internal funds. (Bursa Malaysia) Ho Wah Genting Bhd is teaming up with Switzerland's Dufry Group to jointly operate a duty-free shop in SkyAvenue mall at Genting Highlands Resort, Pahang. It entered into a shareholders agreement with Dufry International AG, a member of Dufry Group, to incorporate a joint venture company for the operation of the duty-free shop. (Bursa Malaysia) HLT Global Bhd is planning a 1-for-2 bonus issuance of up to 133.0mn new shares in the company, on an entitlement date to be determined later. It also proposed to issue up to 199.4mn free warrants, on the basis of three warrants for every four HLT Global shares held on the same entitlement date. (Bursa Malaysia) PLB Engineering Bhd has proposed a 1-for-4 bonus issue of up to 22.8mn shares. The exercise intends to reward its shareholders and increase trading liquidity of the shares on the market. (Bursa Malaysia) Idimension Consolidated Bhd is planning to place out new shares to third party investors to raise up to RM4.8mn, which plans to use mainly as its working capital. The gross proceeds is based on the assumption that the placement shares are placed out at an indicative issue price of 6.5 sen per placement share. (Bursa Malaysia) Poh Huat Resources Holdings Bhd's 3QFY17 profit slipped 3.4% to RM9.7mn from RM10.0mn due to foreign exchange losses. For 9MFY17, it posted a net profit of RM37.9mn an improvement of 35.4% compared with RM28.0mn recorded over the same period of the previous year due to sustained demand for furniture in the US market. (Bursa Malaysia) Bison Consolidated Bhd reported a 52.2% growth in its net profit for 3QFY17 to RM6.2mn from RM4.1mn a year ago. The management of its products and service offerings as well as collaborations with suppliers helped boost its earnings. Net profit for 9MFY17 increased 35.5% to RM18.7mn from RM13.8mn in 9MFY16. (Bursa Malaysia) Comintel Corp Bhd posted a 11% decline in net profit for 2QFY18 to RM2.2mn, from RM2.5mn a year ago, mainly on higher losses recorded by its system integration and maintenance services segment. For the 6MFY18, its net profit fell 40% to RM4.7mn, from RM7.9mn. (Bursa Malaysia) Page 4 of 7
7. 26-Sep-17 N e w s I n B r i e f Economy Asia Japan PM Abe Announces $17.8bn Economic Stimulus Package Japanese Prime Minister Shinzo Abe ordered his cabinet to compile new economic stimulus measures in a package worth around 2tn yen ($17.80bn) by the end of the year. Speaking at a meeting with his top advisory panel, Abe said the package should focus on subsidizing education, child-care costs, and on boosting corporate investments to improve productivity. Abe is expected to announce a snap election to take advantage of improved ratings and disorganized opposition parties, and the stimulus package could be a way to lure voters during the election campaign. Other news in Japan: • The manufacturing sector in Japan continued to expand in September, and at a faster rate, the latest survey from Nikkei with a four-month high manufacturing PMI score of 52.6. That's up from 52.2 in August, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. • Japan's government maintained its economic assessment for September, saying the economy is on a moderate recovery. In its monthly report, the Cabinet Office retained its view on private consumption, business investment, exports, industrial production, corporate profits and employment situation. The government last raised its overall assessment in June. The government expects the economy to recover, supported by the effects of the policies, while employment and income situation is improving. However, attention should be given to the uncertainty in overseas economies and the effects of fluctuations in the financial and capital markets, the government added. (RTT News/Reuters) Singapore's August Headline Inflation at 0.4%, Coming in Below Expectations Both Singapore's headline and core inflation came in lower than expected in August, based on the latest data by the Department of Statistics. The all-items consumer price index (CPI) was up 0.4% YoY, moderating from July's 0.6%, reflecting a fall in private road transport inflation, and to a lesser extent, an easing in food and retail inflation. Collectively, they more than offset the smaller decline in the cost of accommodation. Core inflation, which excludes the costs of accommodation and private road transport, stood at 1.4% in August, easing from 1.6% in the previous month, due to lower food and retail inflation. (The Business Times) China's Slipping Export Crown Could Be Saved by Technology China’s portion of the global export pie has shrunk from a high of almost 17 percent reached in December 2015, International Monetary Fund data show. The pullback is driven mainly by the growth of shipments from commodity-exporting nations like Brazil and Australia amid rising prices for staples like iron ore and bauxite, according to economists from Oxford Economics and TCW Group Inc. Another factor is global demand tilting more to advanced machinery and cars, segments where China is just beginning to emerge as a competitor, says HSBC Holdings Plc. Beijing’s drive to create national champions, subsidize emerging industries, and force technology transfers from foreign firms in the country has prompted U.S. Trade Representative Robert Lighthizer to say it’s an unprecedented threat to the world trading system. Despite the smaller share of global exports, the "Made in China 2025" policy blueprint envisions global competitiveness by that year across 10 key industries from robots to medical devices. (Reuters) Page 5 of 7
8. 26-Sep-17 United States U .S. Economic Expansion is Unevenly Spread, Study Says The U.S. economic expansion is lifting a handful of vibrant communities to new heights but also leaving broad tracts of the country stagnant or sinking, according to a new report. The study, by the Economic Innovation Group, finds that a small number of high-growth cities and towns are fueling U.S. growth and masking economic struggles in decaying industrial towns, swaths of the rural South and other areas of the country. “The prime years of the national economic recovery bypassed many of America’s most vulnerable places altogether, “the report said. “Far from achieving even anemic growth from 2011 to 2015, distressed communities instead experienced what amounts to a deep ongoing recession.” The Washington policy group set up shop in 2015 with funding from Silicon Valley, tech and financial entrepreneurs, and an advisory board that included Kevin Hassett, now President Donald Trump’s top economist, and Austan Goolsbee, a former chairman of President Barack Obama’s Council of Economic Advisers. Much of the group’s work focuses on how business in the private sector can help distressed communities. EIG’s latest findings concerning health statistics are especially stark. On average, residents of the distressed counties die almost five years younger than residents of the most prosperous counties. Mortality rates from mental and substance abuse disorders are 64% higher in distressed counties than prosperous ones. Cancer, pregnancy complications, suicides and violence also contribute to the elevated mortality rate. The U.S. economy has added more than 16 million jobs since 2010, the unemployment rate is hovering near its lowest level in a decade, household incomes set a record last year and the share of Americans living in poverty is back to levels last seen in 2007. (The Wall Street Journal) Fed Unwinding a Sign of Confidence in World Economy The decision by the US Federal Reserve to start unwinding its US$4.2tn of bonds, despite inflation remaining low, is a sign of confidence in the growth prospects of the world economy. However, the rebound in the greenback, if sustained in the near term, could cast a slight downward pressure on emerging market currencies, including the ringgit. Starting next month, the Fed will begin to reduce its US$4.2tn in holdings of US Treasury bonds and mortgage-backed securities by initially cutting up to US$10bn each month from the amount of maturing securities it reinvests. That action will start a gradual reversal of the three rounds of quantitative easing (QE) the Fed pursued between 2008 and 2014 to stimulate the economy after the 2007-2009 financial crisis, according to a Reuters report. (QE refers to the Fed’s purchase of government securities from the market in order to lower interest rates and increase money supply). The limit on reinvestment is scheduled to increase by US$10bn every three months to a maximum of US$50bn per month until the central bank’s overall balance sheet falls by perhaps US$1tn or more in the coming years, the Reuters report said. (The Star/Reuters) Europe and Uni ted Kingdom ECB's Draghi Growing Confident About Inflation Rebound The European Central Bank is growing increasingly confident that inflation will rise back to its target but patience is still needed, ECB President Mario Draghi said. Draghi singled out currency volatility as a source of uncertainty which requires monitoring and argued that the economy still needed to absorb slack, requiring “ample” ECB accommodation. “Overall, we are becoming more confident that inflation will eventually head to levels in line with our inflation aim, but we also know that a very substantial degree of monetary accommodation is still needed for the upward inflation path to materialize,” Draghi told the European Parliament’s committee on economic affairs. With the Eurozone economy now growing for the 17th straight quarter, the ECB is expected to reduce stimulus from next year, even if inflation will remain below the bank near 2% target for years to come. Indeed, policymakers speaking to Reuters said that the debate is now about the details of the policy shift, such as whether to keep quantitative easing open ended or whether to signal an intent to phase out bond purchases. Launched two and a half years ago, the ECB’s 2.3 trillion euro bond purchase scheme has depressed borrowing costs and helped revive spending and growth with the bloc creating over 7 million jobs since the worst days of Europe’s debt crisis. But inflation has been unexpectedly slow to respond, leaving the ECB Page 6 of 7
9. 26-Sep-17 with a dilemma as keeping price growth just below 2 % is its sole mandate. (Reuters) BOE Raises Alarm Over Growth of Consumer Borrowing in U.K. Bank of England officials reiterated warnings about the rapid growth of household borrowing in the U.K. The BOE’s Financial Policy Committee, which spots risks to the stability of the financial system, said in a quarterly policy statement that speedy growth in consumer credit represents “a pocket of risk” in an otherwise benign borrowing environment. The panel said that if borrowers were to default on 20% of the loans they’ve taken out, banks would be saddled with losses of around £30 billion ($40.5 billion). Though recent growth in consumer credit isn’t a risk to the overall economy, “it is a risk to banks’ ability to withstand severe economic downturns, because this asset class is disproportionately more likely to default,” the panel said. Officials said they intend to look at the risks around consumer credit in more detail in upcoming stress tests for banks due late November. On the global front, the FPC said risks to financial stability from heavy indebtedness and geopolitical tensions have risen since its previous quarterly outlook in June. Financial vulnerabilities in China remain pronounced, it said. The panel said it is continuing to identify and monitor possible risks to the financial system from Britain’s looming exit from the European Union. Those risks include cross-border contracts, in particular insurance and derivatives; restrictions on sharing of personal data between the EU and United Kingdom; and restrictions after Brexit on cross-border banking, and asset management provision. (The Wall Street Journal) German Business Confidence Unexpectedly Drops for Second Month German business confidence unexpectedly weakened for a second month in September, in a sign that Europe’s largest economy may struggle to improve on its current brisk pace of expansion. The Ifo Institute’s gauge of business sentiment dropped to 115.2 in September. While that’s still near a record high, it’s down from 115.9 in August and compares with a median forecast by economists for an increase to 116. The Bundesbank said this month that third-quarter growth momentum will be “slightly” lower than in the first half. Ifo’s survey highlights the uncertainty facing German businesses as the economy grows near its capacity, a stronger euro weighs on exports, and the European Central Bank starts discussions on paring back stimulus for the euro zone. Ifo’s measure of current economic conditions worsened to 123.6 from a revised 124.7, and a gauge of expectations fell to 107.4 from a revised 107.8. (Bloomberg) Share Buy-Back: 25 September 2017 Company BKAWAN EKSONS FFHB GRANFLO JCBNEXT KOMARK TROP Bought Back Price (RM) Hi/Lo (RM) 13,900 42,000 18,000 119,000 6,000 52,000 224,300 19.08/18.92 0.85 0.635/0.63 0.245/0.24 1.70 0.25 0.95/0.94 19.08/18.90 0.85 0.635/0.63 0.245/0.235 1.70/1.65 0.25/0.245 0.95/0.93 Total Treasury Shares 435,951,000 3,329,300 109,000,000 7,233,800 173,300 124,633,848 1,465,761,346 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 – 2031 6608 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) BETA EPS (sen) PER (X) Div Yield (%) FY17 FY18 FY17 FY18 FY17 FY18 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 21-Sep-17 AUTOMOBILE BAUTO 2.05 2.40 0.95 10.2 16.1 20.1 12.8 5.7 7.8 2.33 -12.0 1.84 11.4 -3.8 MBMR 2.11 2.09 0.70 20.7 23.2 10.2 9.1 2.0 2.2 2.67 -21.0 2.08 1.4 -1.4 PECCA 1.52 1.69 na 7.8 10.6 19.5 14.4 3.3 3.5 2.00 -24.0 1.45 4.8 -4.4 UMW 5.48 5.04 1.44 19.7 30.6 27.8 17.9 2.4 3.6 6.08 -9.9 4.09 33.9 29.8 BANKS & FINANCIAL SERVICES AFG 3.87 4.80 1.35 33.6 31.0 11.5 12.5 4.1 4.1 4.49 -13.8 3.60 7.5 4.0 AFFIN 2.56 3.70 0.80 29.4 33.6 8.7 7.6 3.1 3.1 3.00 -14.7 2.12 20.8 7.1 AMBANK 4.37 5.70 1.15 43.9 48.6 9.9 9.0 4.0 4.1 5.70 -23.3 3.90 12.1 1.4 CIMB 6.31 8.00 1.57 49.6 55.2 12.7 11.4 4.0 4.4 7.08 -10.9 4.49 40.5 39.9 HLBANK 15.88 17.50 0.64 104.9 114.2 15.1 13.9 2.8 2.8 16.30 -2.6 12.78 24.3 17.6 MAYBANK 9.78 10.20 0.89 69.7 76.1 14.0 12.9 5.1 5.1 9.86 -0.8 7.50 30.4 19.3 PBBANK 20.60 23.60 0.67 137.2 142.4 15.0 14.5 2.7 2.8 20.90 -1.4 19.40 6.2 4.5 RHBBANK 5.16 5.80 1.29 50.6 55.0 10.2 9.4 2.9 2.9 5.59 -7.7 4.53 13.9 9.6 BURSA 9.97 11.10 0.73 40.2 39.0 24.8 25.6 3.4 3.4 10.98 -9.2 8.08 23.4 14.3 CONSTRUCTION BPURI 0.36 0.38 0.75 4.7 4.6 7.6 7.8 0.0 0.0 0.51 -30.4 0.33 9.2 -18.4 GADANG 1.22 1.75 0.35 15.3 14.3 8.0 8.5 2.5 2.5 1.37 -10.9 0.89 37.9 16.2 GAMUDA 5.29 6.00 1.00 27.8 34.5 19.0 15.3 2.3 2.3 5.52 -4.2 4.65 13.8 10.7 IJM 3.35 3.50 0.88 15.3 20.2 21.9 16.6 2.2 2.8 3.61 -7.2 3.07 9.1 4.7 PESONA 0.54 0.78 0.86 4.9 5.7 10.9 9.5 4.6 4.6 0.74 -26.5 0.40 35.0 -10.7 SENDAI 0.84 0.58 1.31 8.3 9.6 10.1 8.7 1.2 1.2 1.39 -39.6 0.46 84.6 46.1 SUNCON 2.26 2.26 na 12.7 12.5 17.9 18.0 2.4 2.4 2.41 -6.2 1.56 44.9 32.9 WCT 1.72 1.49 0.85 11.5 11.7 14.9 14.7 1.7 1.7 2.48 -30.5 1.58 8.8 0.0 LITRAK 5.75 6.26 0.28 41.9 45.7 13.7 12.6 4.3 4.3 6.15 -6.5 5.57 3.2 -2.2 Building Materials CHINHIN 1.31 1.58 na 8.6 11.8 15.2 11.1 3.1 4.6 1.49 -12.1 0.85 55.0 50.6 WTHORSE 1.97 1.67 0.43 6.7 10.0 29.4 19.8 5.1 5.1 2.19 -10.0 1.92 2.6 -2.0 CARLSBG 14.78 18.06 0.54 79.3 86.2 18.6 17.1 5.3 5.8 15.30 -3.4 13.72 7.7 6.2 HEIM 18.30 19.14 0.50 79.6 84.0 23.0 21.8 3.9 4.1 19.58 -6.5 15.56 17.6 11.7 AEON 2.04 2.23 0.48 6.5 7.5 31.3 27.1 2.0 2.3 2.93 -30.4 1.98 3.0 -20.6 AMWAY 7.30 8.62 0.33 30.6 38.7 23.8 18.9 4.5 4.8 8.49 -14.0 7.05 3.5 -0.4 F&N 24.54 27.41 0.21 121.1 150.9 20.3 16.3 2.9 3.1 26.00 -5.6 22.44 9.4 4.5 HUPSENG 1.17 1.50 0.38 6.5 6.6 18.0 17.7 5.1 5.1 1.28 -8.6 1.13 3.4 1.7 NESTLE 84.90 92.76 0.41 292.7 325.4 29.0 26.1 3.2 3.3 85.98 -1.3 74.12 14.5 8.6 CONSUMER Brewery Retail PADINI 4.39 4.67 0.54 23.5 27.0 18.7 16.3 2.6 2.8 4.65 -5.6 2.26 94.2 72.9 POHUAT 1.96 2.50 0.73 27.4 27.4 7.2 7.2 4.1 4.1 2.06 -4.9 1.50 30.7 13.3 QL 3.90 4.32 0.46 15.7 16.7 24.8 23.4 1.1 1.2 4.03 -3.2 3.26 19.8 17.1 SIGN 0.87 1.23 0.62 8.5 11.6 10.2 7.5 2.9 4.0 1.07 -19.2 0.78 10.9 8.8 44.00 52.08 1.15 198.6 187.4 22.2 23.5 4.5 4.5 51.04 -13.8 40.61 8.4 -0.4 GENTING 9.76 11.51 1.41 45.6 54.4 21.4 17.9 1.4 1.6 10.00 -2.4 7.50 30.2 22.8 GENM 5.53 6.53 1.43 21.0 27.1 26.3 20.4 1.4 1.6 6.38 -13.3 4.42 25.1 22.4 BJTOTO 2.42 3.34 0.89 18.3 23.2 13.2 10.4 5.8 6.6 3.42 -29.2 2.25 7.6 -18.2 LUSTER 0.13 0.15 1.93 0.4 0.4 35.8 36.1 0.0 0.0 0.16 -18.8 0.05 160.0 160.0 IHH 5.82 6.41 0.77 7.9 13.1 73.3 44.5 0.6 0.6 6.60 -11.8 5.54 5.1 -8.3 KPJ 1.08 4.67 0.38 13.3 16.2 8.1 6.6 5.7 6.9 1.14 -5.3 0.96 12.2 3.3 HARTA 6.50 6.87 0.59 17.2 24.6 37.9 26.4 1.3 1.7 7.40 -12.2 4.53 43.5 34.6 KOSSAN 6.67 7.60 0.16 33.9 40.0 19.7 16.7 2.5 3.0 7.36 -9.4 5.62 18.7 1.2 SUPERMX 1.72 1.80 0.29 10.6 15.1 16.3 11.4 1.9 2.6 2.38 -27.7 1.71 0.6 -18.5 TOPGLOV 5.40 6.05 -0.15 26.4 29.8 20.4 18.1 2.5 2.8 5.94 -9.1 4.56 18.4 0.9 KAREX 1.49 1.60 0.30 2.8 4.6 53.4 32.1 1.3 0.8 2.62 -43.1 1.37 8.8 -36.9 SCIENTX 8.59 9.38 0.48 52.3 64.9 16.4 13.2 1.9 2.1 9.85 -12.8 6.18 39.0 28.2 SKPRES 1.50 1.75 0.59 8.4 10.4 17.9 14.5 2.8 3.4 1.55 -3.2 1.24 21.0 16.3 ASTRO 2.81 3.40 1.19 13.2 14.6 21.2 19.3 4.4 4.6 2.94 -4.4 2.47 13.8 8.1 MEDIA PRIMA 0.77 0.60 0.54 0.9 2.8 89.7 27.1 0.9 2.9 1.39 -45.0 0.66 16.8 -33.5 STAR 2.36 1.35 0.46 3.3 4.0 71.2 58.4 17.8 7.6 2.60 -9.2 2.19 7.8 5.4 Tobacco BAT GAMING Casino NFO HEALTHCARE Hospitals Rubber Gloves INDUSTRIAL MEDIA OIL & GAS DNEX 0.48 0.76 1.14 3.7 4.6 13.1 10.5 2.1 2.1 0.69 -30.4 0.23 113.3 88.2 LCTITAN 5.25 6.88 na 44.1 65.0 11.9 8.1 3.4 6.1 6.53 -19.6 4.14 26.8 -19.2 MHB 0.82 0.78 1.66 -2.0 -0.5 na na 0.0 0.0 1.16 -29.7 0.63 30.4 -10.9 MISC 7.38 6.56 0.95 56.3 46.9 13.1 15.7 4.1 4.1 7.90 -6.6 7.03 5.0 0.4 PANTECH 0.64 0.69 1.18 4.0 6.1 16.0 10.4 2.8 4.3 0.68 -6.6 0.44 46.0 42.7 PCHEM 7.35 7.62 1.08 44.3 44.7 16.6 16.5 2.6 2.7 7.80 -5.8 6.53 12.6 5.3 SENERGY 1.66 1.71 2.70 6.6 4.0 25.1 41.9 0.6 0.6 2.10 -21.0 1.33 24.8 2.5 SERBADK 2.21 2.77 na 22.1 25.2 10.0 8.8 3.0 3.4 2.30 -3.9 1.51 46.4 47.3 UMWOG 0.34 0.80 1.89 -12.0 -3.5 na na 0.0 0.0 0.92 -63.1 0.27 24.4 -60.2 0.0 0.0 1.98 -29.8 1.28 8.6 -18.2 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.39 1.55 1.49 11.3 12.3 12.3 11.3
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) FGV 1.67 1.52 1.71 IJMPLNT 2.95 3.58 0.36 IOICORP 4.55 4.14 1.25 KFIMA 1.68 1.89 0.47 KLK 24.62 26.18 SIME 9.10 9.80 UMCCA 6.58 7.52 0.46 GLOMAC 0.65 0.70 0.67 HUAYANG 0.84 0.96 0.50 IBRACO 0.86 0.94 na 3.3 10.5 26.4 8.2 2.3 4.7 1.05 -18.1 IOIPG 2.05 2.23 1.10 18.9 16.9 10.8 12.1 2.9 2.9 2.39 -14.1 MAHSING 1.48 1.76 0.92 14.3 13.5 10.3 10.9 4.4 4.4 1.69 -12.4 1.34 10.4 3.5 SNTORIA 0.80 0.98 0.37 6.2 10.3 13.0 7.8 1.3 1.3 1.00 -20.0 0.69 15.9 0.0 8.6 BETA EPS (sen) FY17 PER (X) Div Yield (%) 52weeks 52weeks % Chg FY18 FY17 FY18 FY17 FY18 High Price % Chg Low Price % Chg YTD 1.0 2.5 168.9 65.6 3.0 3.0 2.47 -32.4 1.42 17.6 7.7 12.3 14.1 24.0 21.0 2.4 2.7 3.70 -20.3 2.95 0.0 -13.2 17.3 21.0 26.2 21.6 2.1 3.5 4.81 -5.4 4.30 5.8 3.4 19.9 13.3 8.4 12.6 5.4 5.4 1.96 -14.3 1.65 1.8 -1.2 0.72 103.4 120.4 23.8 20.4 2.1 2.4 25.50 -3.5 23.00 7.0 2.6 1.49 34.2 37.3 26.6 24.4 2.5 2.5 9.70 -6.2 7.59 19.9 12.3 37.5 31.8 17.5 20.7 3.5 2.6 6.83 -3.7 5.50 19.6 10.2 1.4 5.7 44.9 11.3 4.2 4.2 0.80 -18.8 0.61 6.6 -6.5 17.3 10.2 4.9 8.2 4.8 2.4 1.43 -41.4 0.80 5.0 -25.7 0.76 13.9 -14.0 1.85 11.0 5.2 PLANTATIONS PROPERTY Note: SNTORIA proposed bonus issue of warrants & right issue of shares. For more details please refer to 25.09.17 report. SPB 4.80 5.98 0.47 25.6 22.8 13.4 15.1 2.5 2.5 5.19 -7.5 4.32 11.0 SPSETIA 3.43 4.10 0.84 11.6 12.5 37.9 35.3 4.1 4.1 4.50 -23.8 3.10 10.6 9.6 SUNWAY 4.40 4.15 0.51 15.8 15.3 17.2 17.7 1.1 1.1 4.57 -3.7 2.89 52.2 46.7 Note: SUNWAY proposed bonus issue of shares and warrants. Ex-Target price RM1.69. For more details please refer to 15.06.17 report. REIT SUNREIT 1.73 1.86 0.60 8.9 10.1 19.5 17.1 5.3 5.8 1.84 -6.0 1.63 6.1 0.6 CMMT 1.43 1.72 0.36 8.1 8.6 17.7 16.6 5.9 6.3 1.72 -16.9 1.43 0.0 -6.5 -24.1 POWER & UTILITIES MALAKOF 1.04 1.22 0.68 6.8 6.9 15.2 15.2 6.7 6.7 1.68 -38.1 1.00 4.5 PETDAG 24.26 21.47 0.80 98.2 102.3 24.7 23.7 3.0 3.1 25.70 -5.6 23.00 5.5 1.9 PETGAS 18.44 19.37 0.83 87.6 100.1 21.1 18.4 3.4 3.8 22.50 -18.0 17.82 3.5 -13.4 TENAGA 14.40 17.38 0.79 131.8 130.4 10.9 11.0 3.0 3.2 14.80 -2.7 13.00 10.8 3.6 YTLPOWR 1.38 1.40 0.56 8.4 11.4 16.4 12.1 3.6 3.6 1.64 -15.9 1.38 0.0 -7.4 TELECOMMUNICATIONS AXIATA 5.12 5.40 1.39 15.7 16.9 32.7 30.3 1.5 1.7 5.50 -6.9 4.11 24.6 8.5 DIGI 4.91 4.90 0.84 20.0 20.4 24.5 24.1 4.1 4.2 5.19 -5.4 4.63 6.0 1.7 MAXIS 5.80 5.85 0.76 24.5 24.7 23.7 23.5 3.4 3.4 6.60 -12.1 5.48 5.8 -3.0 TM 6.39 7.40 0.61 22.7 23.4 28.2 27.3 3.2 3.3 6.84 -6.6 5.81 10.0 7.4 ELSOFT 2.60 3.00 0.62 11.3 14.1 23.0 18.5 3.1 3.8 2.95 -11.9 1.20 116.7 85.2 IRIS 0.18 0.25 1.51 -1.3 0.6 na 31.6 0.0 0.0 0.22 -20.5 0.10 75.0 59.1 INARI 2.47 2.75 0.70 11.4 13.1 21.7 18.9 4.0 3.7 2.65 -6.6 1.59 55.0 49.1 MPI 13.22 15.40 0.16 89.5 110.2 14.8 12.0 2.0 2.0 14.30 -7.6 7.20 83.6 78.4 UNISEM 3.74 4.30 0.51 26.9 32.1 13.9 11.6 3.2 3.2 4.25 -12.0 2.27 64.8 58.5 TECHNOLOGY Semiconductor & Electronics TRANSPORTATION Airlines AIRASIA 3.53 3.76 0.96 44.0 37.6 8.0 9.4 1.1 1.4 3.59 -1.7 2.16 63.4 54.1 AIRPORT 8.60 8.10 1.16 17.2 17.5 49.9 49.2 1.2 1.2 9.45 -9.0 5.91 45.5 41.9 TNLOGIS 1.57 1.80 0.77 12.0 13.6 13.0 11.5 2.7 3.2 1.83 -14.4 1.48 6.1 0.7 WPRTS 3.76 4.05 0.75 17.1 15.1 21.9 24.9 3.4 3.0 4.45 -15.5 3.58 5.0 -12.6 Freight & Tankers SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) Beta EPS (cent) FY17 FY18 PER (X) FY17 FY18 Div Yield (%) FY17 FY18 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 20.62 23.30 1.23 172.9 189.2 11.9 10.9 2.9 2.9 22.3 -7.3 14.80 39.3 18.9 OCBC 11.16 12.00 1.16 87.7 92.4 12.7 12.1 5.7 6.7 11.5 -2.9 8.84 34.0 25.1 UOB 23.46 25.40 1.06 192.9 206.5 12.2 11.4 3.0 3.0 24.6 -4.6 17.98 30.5 15.0 PLANTATIONS WILMAR 3.22 3.72 0.95 28.9 31.1 11.1 10.3 2.5 2.8 4.0 -19.5 3.08 4.5 -10.3 IFAR 0.46 0.53 1.06 4.9 5.2 9.4 8.8 2.6 2.8 0.6 -23.5 0.44 3.4 -13.3 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 , September 26, 2017 FBMKLCI: 1,769.14 Sector: Consumer THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM2.50 (+27.6%) Poh Huat Resources Holdings Berhad Last Traded: RM1.96 On Track for Record Year Ooi Beng Hooi Tel: +603-2167 9612 BUY benghooi@ta.com.my Review Excluding RM1.1mn of partial write-back previously impaired for the disposal of factory land and buildings in Qingdao, China, Pohuat’s 9MFY17 core profit of RM35.8mn accounted for 61.1% of our FY17 full-year estimate. We deem the results to be within expectation as Pohuat is expected to deliver strong 4Q results. As a reference, the 4Q core profit made up 47.4% and 37.6% of FY15 and FY16 full-year core profit respectively. An interim dividend of 2sen/share (3QFY16: 2sen/share) plus a special interim dividend of 1sen/share (3QFY16: nil) were declared, bringing the YTD dividend declared to 5sen/share (9MFY16: 6sen/share). 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 (%) PHR MK POHUAT 7088 Main Market 213.9 419.3 2.06/1.50 355.4 37.1 0.7 Tay Kim Huat - 24.06 Lim Pei Tiam - 13.34 Forecast Revision YoY, 9MFY17 net profit surged 28.1% to RM35.8mn, backed by 15.5% jump in revenue to RM442.6mn and better margin (operating margin +1.3% pts to 10.5%). Versus 3QFY16, the core profit dropped 24.3% to RM7.5mn despite revenue was 20.6% higher at RM151.5mn as the margin was impacted by higher raw material costs, stronger Ringgit, higher labour costs in Vietnam, higher logistics costs and marketing expenses, weaker selling prices for older products and lower efficiency resulted from commencement of several new ranges of bedroom sets. QoQ, the net profit was 28.9% lower at RM7.5mn, largely due to higher material costs and higher labour costs at the plants in Vietnam. Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 58.6 58.6 Buy (Maintained) Financial Indicators Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) FY17 net cash (8.8) (22.3) 14.7 1.3 1.5 FY18 net cash 12.8 15.4 13.2 1.4 1.4 Impact No change to our FY17 to FY19 earnings forecasts but we raise FY17 dividend payout from 6sen/share to 8sen/share. Scorecard vs. TA vs. Consensus % of FY 61.1 - Within - Outlook The demand for furniture in US is expected to remain robust in the foreseeable future. Furthermore, the hurricanes that hit the US recently are expected to increase the demand for furniture in US in coming months as hurricane victims replace their damaged furniture. Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth POHUAT 2.6 0.0 1.0 29.8 FBM KLCI (0.0) (0.6) 1.3 5.9 We anticipate the operating efficiency and margin to improve in the subsequent months as the Vietnam plants go through the learning curve of producing several new ranges of bedroom sets. (12-Mth) Share Price relative to the FBMKLCI Valuation Maintain our BUY call on the stock with an unchanged target price of RM2.50, based on unchanged 11x CY18 earnings. Source: Bloomberg Page 1 of 3
13. 26-Sep-17 CY18 net profit Target PE (RMmn) multiple 58.7 11 Valuation (RMmn) 645.6 Proceeds from warrants conversion 53.3 699.0 280.1 2.50 Enlarged share base (mn shares) Target price (RM/share) Table 1: Earnings Summary (RMmn) FYE Oct (RMmn) 2015 2016 2017F 2018F 2019F R e ve nue 453.9 535.2 615.6 620.3 625.2 90.4 107.0 129.3 130.3 131.3 56.5 68.0 82.3 84.6 86.8 12.4 12.7 13.4 13.6 13.9 54.5 60.4 73.2 74.8 76.4 Gros s profit E B ITDA E B ITDA m a rg in (% ) E B IT Core P B T 52.6 56.4 72.1 74.3 76.1 P AT 39.2 47.1 59.7 58.6 59.0 Core ne t profit 44.4 44.9 58.6 58.6 59.0 20.8 20.1 25.1 24.1 23.3 Core E P S * (s e n) PER (x) 9.4 9.8 7.8 8.1 8.4 Gros s divide nd* (s e n) 5.0 8.0 8.0 8.0 8.0 Divide nd yie ld (% ) 2.6 4.1 4.1 4.1 4.1 R OE (% ) 23.0 19.6 21.8 18.4 16.1 Note: *Adjus t f or 1 into 2 s ha re s plit in Oc t 2015 Page 2 of 3
14. 26-Sep-17 Table 2 : 3QFY17 Results Analysis (RMmn) FYE Oct 3Q16 2Q17 3Q17 Re v e n u e 125.6 127.6 151.5 Co st o f Sa le s (103.0) (99.2) Gro ss p ro f it 22.6 28.5 Op e ra t in g p ro f it 12.7 F in a n c e Co st s (0.4) Co re P BT QoQ (% ) YoY (% ) 9MFY16 9MFY17 YoY (% ) 18.7 20.6 383.2 442.6 15.5 (127.4) 28.5 23.7 (311.1) (355.7) 14.3 24.1 (15.5) 6.4 72.0 86.9 20.6 14.6 12.0 (17.4) (5.0) 35.3 46.6 31.8 (0.4) (0.4) 0.0 (16.3) (1.4) (1.2) (17.1) 12.2 14.2 9.6 (25.3) (13.3) 33.9 44.3 30.7 In c o m e t a x e xp e n se (2.3) (3.7) (2.2) (41.1) (4.0) (6.2) (7.9) 28.4 No n -c o n t ro llin g in t e re st s 0.0 (0.1) (0.2) 51.3 (3,942.8) (0.2) (0.4) 119.3 Ne t p ro f it 10.0 10.6 8.6 (18.9) (13.6) 28.0 36.9 31.9 Co re n e t p ro f it 10.0 10.6 7.5 (28.9) (24.3) 28.0 35.8 28.1 Re p o rt e d EP S (se n ) 4.7 5.0 4.5 (9.1) (3.4) 13.1 17.8 35.4 EP S (se n ) 4.7 5.0 4.0 (20.3) (15.3) 13.1 17.2 31.2 Div id e n d (se n ) 2.0 0.0 3.0 na 50.0 6.0 5.0 (16.7) % p ts % p ts 7.0 (4.1) (2.7) Ma rg in (% ): - PBT 9.7 - P AT - Ef f e c t iv e t a x ra t e 11.1 % p ts 8.9 10.0 1.2 7.9 8.2 5.6 (2.7) (2.4) 7.2 8.2 1.0 18.7 26.2 20.7 (5.5) 2.0 18.1 17.8 (0.3) 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, September 26, 2017, 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 – 2031 6608 www.ta.com.my Page 3 of 3
15. Tuesday , 26 September, 2017 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s P ic ks 2. D ai l y St o ck S cr een 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 – 2031 6608 www.ta.com.my
16. Technical View Tuesday , September 26, 2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,769.14 (-1.90, -0.11%) Chartist: Stephen Soo Name F BMKLCI AFF IN AFG AMBANK AXIATA CIMB DIGI GAMUDA GE NTING GE NM IHH IOICORP MALAKOF F MAXIS MAYBANK MBS B RHBBANK S IME TE NAGA TM WP RTS AIR AS IA AIR AS IA X ARMADA BINAP UR I CMS B DIALOG E CO WORLD E KOVE S T GADANG HS L IS KANDAR KIMLUN KKBE MUDAJ AYA MR CB NAIM S AP URA E NE R GY S UNCON UE MS WAS E ONG WCT Close 25/9/2017 1769.14 Change (1.90) 2.56 NA 4.37 5.12 6.31 4.91 5.29 9.76 5.53 5.82 4.55 1.04 5.80 9.78 1.20 5.16 9.10 14.40 6.39 3.76 3.53 0.38 0.74 0.36 3.90 1.99 1.58 1.09 1.22 1.47 1.28 2.20 0.87 1.07 1.08 1.23 1.66 2.26 1.15 0.99 1.72 Low 2.61 NA -0.13 0.04 -0.04 0.04 -0.07 0.01 -0.07 0.02 -0.05 -0.03 0.04 -0.07 -0.02 -0.12 -0.03 -0.04 0.02 -0.01 0.12 -0.01 -0.01 0.00 -0.07 -0.01 0.00 -0.01 -0.01 0.01 0.00 0.00 -0.01 0.00 -0.04 0.00 0.01 0.01 -0.01 -0.01 -0.03 stsoo@ta.com.my Bollinger Bands RSI Moving Averages DMI Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX 1,772.19 1,768.16 1,761.83 1,776.34 1,790.86 43.92 1,780.05 1,775.50 1,770.87 20.48 23.25 16.92 High -0.04 NA Tel: +603-2167-9607 2.56 NA 4.50 5.15 6.35 4.92 5.36 9.86 5.63 5.85 4.64 1.06 5.81 9.84 1.23 5.26 9.13 14.52 6.42 3.81 3.53 0.39 0.76 0.36 3.96 2.06 1.59 1.11 1.23 1.47 1.30 2.20 0.88 1.07 1.13 1.23 1.67 2.28 1.17 1.00 1.75 4.37 5.04 6.26 4.84 5.28 9.74 5.51 5.74 4.55 1.03 5.75 9.66 1.19 5.13 9.08 14.38 6.33 3.76 3.44 0.38 0.74 0.36 3.90 1.99 1.56 1.08 1.22 1.47 1.27 2.20 0.87 1.05 1.08 1.23 1.64 2.25 1.15 0.99 1.72 2.50 3.75 4.20 4.84 6.31 4.83 5.31 9.65 5.52 5.79 4.47 1.04 5.72 9.37 1.19 4.97 8.97 14.20 6.36 3.62 3.25 0.36 0.72 0.34 3.85 1.95 1.55 1.08 1.20 1.43 1.26 2.13 0.85 1.02 1.12 1.14 1.37 2.23 1.14 0.95 1.71 2.59 3.84 4.41 5.02 6.69 4.88 5.37 9.82 5.80 5.93 4.57 1.09 5.77 9.64 1.24 5.08 9.12 14.45 6.41 3.79 3.41 0.38 0.74 0.36 4.02 2.03 1.57 1.12 1.25 1.47 1.29 2.18 0.89 1.06 1.19 1.19 1.54 2.30 1.18 0.98 1.79 2.68 3.93 4.62 5.21 7.07 4.93 5.43 10.00 6.08 6.08 4.68 1.14 5.83 9.91 1.29 5.20 9.27 14.70 6.46 3.95 3.57 0.41 0.76 0.37 4.20 2.10 1.60 1.16 1.29 1.51 1.33 2.23 0.94 1.11 1.25 1.24 1.71 2.36 1.21 1.01 1.86 42.78 50.59 39.08 65.13 33.80 58.53 35.42 47.79 37.89 39.58 48.73 41.28 55.95 60.32 39.02 58.29 38.17 48.11 47.82 48.76 63.42 44.35 51.49 46.84 40.55 46.43 53.43 42.56 45.05 46.30 44.30 49.98 26.16 46.28 26.63 61.23 64.05 49.20 44.66 55.79 35.70 2.63 3.85 4.44 5.09 6.59 4.88 5.36 9.84 5.72 5.90 4.60 1.08 5.78 9.75 1.23 5.11 9.15 14.54 6.40 3.84 3.46 0.39 0.74 0.36 4.05 2.03 1.58 1.11 1.24 1.47 1.30 2.19 0.87 1.06 1.18 1.20 1.61 2.30 1.18 0.98 1.77 2.57 3.86 4.51 4.96 6.72 4.85 5.39 9.79 5.87 5.96 4.54 1.07 5.77 9.66 1.24 5.01 9.20 14.37 6.40 3.74 3.36 0.38 0.73 0.35 3.98 2.00 1.57 1.12 1.24 1.48 1.30 2.20 0.92 1.08 1.18 1.19 1.52 2.28 1.16 0.98 1.81 2.58 3.87 4.71 4.86 6.62 4.82 5.38 9.71 5.90 5.96 4.52 1.06 5.71 9.65 1.25 5.02 9.31 14.29 6.39 3.72 3.31 0.38 0.72 0.36 3.96 1.97 1.57 1.11 1.26 1.51 1.32 2.23 1.03 1.16 1.23 1.22 1.54 2.20 1.17 0.96 1.85 21.59 22.81 19.88 25.98 13.75 17.32 7.85 12.11 9.96 10.14 21.21 21.38 19.96 25.40 15.85 27.92 18.03 26.75 14.45 14.93 25.22 23.89 24.70 24.84 16.60 19.96 18.14 11.76 18.78 26.57 23.36 21.79 12.00 25.51 13.22 32.16 27.81 18.96 18.23 32.35 6.41 24.54 10.79 20.40 13.09 32.08 16.99 24.20 14.57 30.10 24.02 14.24 24.71 19.65 20.93 24.32 9.73 14.50 16.96 14.63 17.73 20.27 15.88 12.28 21.48 23.89 13.61 12.22 26.05 18.84 27.00 17.46 45.33 43.32 23.81 34.63 17.48 13.24 21.43 16.01 14.17 26.22 28.83 17.75 20.53 31.82 30.46 17.10 25.35 10.83 27.54 25.17 30.99 23.44 11.82 27.05 14.53 22.78 21.03 52.40 14.12 25.27 10.23 29.06 34.23 22.89 15.75 30.39 18.50 14.59 12.08 20.31 14.41 22.35 58.24 15.18 16.39 24.09 32.06 19.57 23.04 26.95 50.56 Diff (2.76) -2.95 12.02 -0.53 12.90 -18.33 0.32 -16.35 -2.46 -20.14 -13.88 6.97 -3.33 0.31 4.47 -8.47 18.19 3.53 9.79 -0.18 -2.80 4.95 8.01 3.36 -7.28 6.35 6.35 5.92 -14.29 -0.06 -0.43 5.91 -23.54 -31.32 1.70 -21.41 14.68 14.57 -2.46 2.21 18.18 -19.81 www.taonline.com.my Line 0.85 0.01 0.00 -0.06 0.06 -0.08 0.01 -0.01 0.03 -0.09 -0.04 0.03 0.00 0.01 0.05 -0.01 0.05 -0.05 0.06 0.00 0.03 0.05 0.00 0.01 0.00 0.01 0.01 0.00 -0.01 -0.01 -0.01 -0.01 -0.01 -0.04 -0.02 -0.02 0.00 0.03 0.02 0.00 0.01 -0.03 MACD Signal Diff 2.30 (1.457) 0.01 -0.01 -0.09 0.07 -0.01 0.01 -0.01 0.04 -0.06 -0.02 0.03 0.00 0.01 0.03 -0.01 0.03 -0.06 0.08 0.00 0.04 0.05 0.00 0.01 0.00 0.03 0.02 0.00 0.00 -0.01 -0.02 -0.02 -0.02 -0.05 -0.03 -0.02 -0.01 0.02 0.03 0.00 0.01 -0.03 (0.001) 0.011 0.030 (0.003) (0.064) (0.001) (0.005) (0.018) (0.031) (0.018) (0.000) 0.001 (0.004) 0.027 (0.004) 0.017 0.014 (0.018) (0.002) (0.008) 0.002 (0.000) (0.000) 0.001 (0.019) (0.011) 0.001 (0.003) (0.001) 0.002 0.002 0.007 0.008 0.009 (0.007) 0.009 0.018 (0.014) (0.002) 0.001 (0.001) DMI MACD DMI MACD Recent Signal Signal Change SELL SELL SELL BUY SELL BUY SELL BUY SELL SELL SELL SELL BUY SELL BUY BUY SELL BUY BUY BUY SELL SELL BUY BUY BUY SELL BUY BUY BUY SELL SELL SELL BUY SELL SELL BUY SELL BUY BUY SELL BUY BUY SELL SELL BUY BUY SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL BUY SELL BUY BUY SELL SELL SELL BUY SELL SELL BUY SELL SELL BUY SELL SELL BUY BUY BUY BUY BUY SELL BUY BUY SELL SELL BUY SELL SELL SELL BUY S E LL BUY BUY SELL - SELL SELL BUY S E LL S E LL S E LL 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 30day 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
17. 26-Sep-17 Technical Comments : Sell Affin & AMMB Technically, weakening trend indicators implies further correction potential on Affin Holdings shares towards the 50%FR (RM2.54), with better supports seen at the lower Bollinger band (RM2.50) and 38.2%FR (RM2.43), upon a breakdown. Similarly AMMB Holdings could ease lower towards the 23.6%FR (RM4.32), with a breakdown to test the lower Bollinger band (RM4.20), with the low of 14/11/16 (RM3.90) anchoring as the crucial support. Immediate upside hurdle rest at upper Bollinger band (RM4.62). AFFIN HOLDINGS BHD RM2.56 (-0.04) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 2.68 2.59 2.50 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal Signal Change SELL SELL Recent Signal Signal Change AMMB HOLDINGS BHD RM RM RM SIMPLE MOVING AVERAGES 4.62 4.41 4.20 10-day 30-day 50-day DMI Recent Signal Signal Change SELL SELL RM4.37 (-0.13) BOLLINGER BANDS Upper Middle Lower 2.63 2.57 2.58 SELL Recent Signal Signal Change RM RM RM DAILY MACD 4.44 4.51 4.70 BUY Page 2 of 4
18. Technical View Tuesday , September 26, 2017 FBMKLCI: 1,769.14 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia End Day Census of 25.09.2017 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 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 Stock Name BORNEO OIL BHD DAYA MATERIALS SMTRACK BHD MQ TECHNOLOGY BH VIZIONE HOLDINGS PDZ HOLDINGS BHD SKH CONSORTIUM B HIAP TECK VENTUR FRONTKEN CORP MY EG SERVICES SUNWAY BHD VIVOCOM INTERNAT MALAYAN UTD INDS SUNWAY REAL ESTA PALETTE MULTIMED PUC FOUNDER MSC BERJAYA CORP BHD PERISAI PETROLEU PASUKHAS GROUP TA GLOBAL BHD LAY HONG BHD PUBLIC BANK BHD SKP RESOURCES BH METRONIC GLOBAL APFT SUMATEC RESOURCE GREEN PACKET BHD DRB-HICOM BHD ECO WORLD DEVELO LEON FUAT BHD Price 0.10 0.08 0.17 0.07 0.15 0.05 0.13 0.42 0.38 2.07 4.40 0.14 0.18 1.73 0.21 0.15 0.34 0.05 0.17 0.39 1.00 20.60 1.50 0.06 0.03 0.06 0.35 1.63 1.58 0.84 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.09 0.05 0.13 0.04 0.12 0.04 0.11 0.36 0.34 2.01 4.23 0.12 0.16 1.70 0.10 0.12 0.32 0.04 0.14 0.37 0.98 20.55 1.44 0.04 0.02 0.04 0.32 1.56 1.55 0.74 0.10 0.07 0.16 0.06 0.14 0.05 0.12 0.41 0.37 2.07 4.39 0.13 0.17 1.72 0.20 0.14 0.33 0.05 0.15 0.38 0.99 20.59 1.49 0.05 0.02 0.05 0.35 1.62 1.57 0.82 0.10 0.08 0.18 0.08 0.16 0.06 0.13 0.46 0.40 2.13 4.55 0.14 0.18 1.74 0.29 0.16 0.34 0.06 0.17 0.40 1.00 20.62 1.53 0.06 0.03 0.06 0.37 1.68 1.60 0.91 51.58 61.10 50.25 53.19 69.36 50.89 56.94 58.02 56.29 48.79 54.23 53.58 60.21 53.91 59.65 61.43 59.83 54.24 56.04 63.08 71.18 54.85 56.42 63.45 46.61 60.83 49.09 48.07 53.43 55.08 0.10 0.07 0.16 0.07 0.14 0.05 0.12 0.43 0.38 2.08 4.44 0.13 0.17 1.73 0.23 0.15 0.34 0.05 0.16 0.38 0.99 20.59 1.50 0.06 0.02 0.05 0.36 1.64 1.58 0.86 0.10 0.07 0.16 0.06 0.13 0.05 0.12 0.40 0.36 2.06 4.32 0.13 0.17 1.73 0.16 0.13 0.33 0.05 0.15 0.38 0.96 20.59 1.47 0.05 0.03 0.05 0.35 1.63 1.57 0.81 0.10 0.07 0.18 0.06 0.13 0.05 0.12 0.39 0.37 2.09 4.27 0.13 0.17 1.72 0.12 0.13 0.33 0.05 0.16 0.35 0.94 20.54 1.42 0.05 0.04 0.05 0.35 1.65 1.57 0.77 Vol 35,404,300 24,477,400 19,927,800 13,172,700 10,519,500 10,480,800 10,102,700 10,047,300 10,007,500 8,986,100 7,654,600 7,177,100 6,151,900 6,110,200 6,047,600 4,986,500 4,717,600 4,586,300 4,462,600 4,438,200 4,306,500 4,103,800 4,073,700 3,205,300 2,854,100 2,524,200 2,361,300 2,281,100 2,055,800 1,942,300 20-day avg vol 17,526,400 9,169,930 4,662,445 39,977,760 14,938,950 7,278,470 5,859,770 16,266,880 18,818,700 7,146,570 3,212,670 13,438,590 1,269,550 2,271,545 41,502,810 21,402,840 3,891,225 5,230,510 1,895,690 3,834,720 1,381,185 3,971,980 3,661,940 3,249,825 31,191,010 15,554,580 4,001,815 2,505,960 1,979,080 2,754,365 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
19. *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 Lower Middle Upper 14-day 10-day 30-day 50-day Vol 20-day avg vol 1 TANCO HLDGS BHD 2 19 GOLDEN PHAROS PARKSON HOLDINGS KUMPULAN H&L HIG MUAR BAN LEE GRO LFE CORP BHD BREM HLDG BHD POH KONG HOLDING GOH BAN HUAT MYETF-TR APEJ IA MEDIA PRIMA BHD CARIMIN PETROLEU MMAG HOLDINGS BH EA TECHNIQUE M B JAYCORP BHD YONG TAI BHD DELEUM BERHAD LION FOREST INDU GUAN CHONG BHD 0.13 0.36 0.60 1.24 1.18 0.28 1.08 0.74 1.43 1.09 0.77 0.44 0.26 0.54 1.52 1.60 0.93 0.79 1.59 0.09 0.25 0.51 0.92 1.01 0.24 0.87 0.51 1.30 1.02 0.66 0.21 0.16 0.34 1.41 1.37 0.74 0.40 1.47 0.10 0.28 0.54 1.04 1.09 0.26 0.96 0.62 1.34 1.05 0.71 0.32 0.20 0.43 1.46 1.49 0.83 0.59 1.52 0.12 0.32 0.58 1.16 1.18 0.27 1.05 0.72 1.39 1.09 0.75 0.42 0.23 0.51 1.51 1.60 0.91 0.79 1.58 71.07 76.86 72.63 70.75 70.13 64.50 75.48 67.77 80.30 61.06 59.69 69.94 80.37 82.36 63.52 78.94 79.20 79.49 63.43 0.10 0.29 0.55 1.03 1.13 0.26 0.99 0.66 1.35 1.06 0.72 0.34 0.21 0.45 1.45 1.52 0.86 0.68 1.54 0.10 0.29 0.54 1.06 1.08 0.26 0.94 0.58 1.34 1.05 0.72 0.31 0.19 0.41 1.46 1.46 0.81 0.56 1.53 0.10 0.30 0.55 1.07 1.06 0.26 0.96 0.55 1.36 1.05 0.78 0.30 0.20 0.41 1.45 1.44 0.82 0.55 1.49 18,931,000 3,477,000 7,047,300 21,300 1,889,900 1,060,600 4,577,300 16,825,900 20,000 71,000 10,655,500 7,809,800 53,962,400 13,325,500 703,100 7,334,200 2,502,500 1,249,400 1,004,700 1,529,040 300,890 932,505 2,890 302,930 177,205 780,445 2,916,045 3,650 13,405 2,188,725 1,706,995 12,054,400 3,001,150 158,780 1,663,990 577,720 374,575 301,475 20 DAMANSARA REALTY 0.57 0.51 0.54 0.56 58.47 0.54 0.53 0.55 481,300 146,485 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stock Name HONG LEONG INDS MALAYSIAN PAC IN VISDYNAMICS HLDG UNISEM (M) BHD MMC CORP BHD SYARIKAT TAKAFUL BISON CONSOLIDAT MALAYSIAN RES CO DUFU TECHNOLOGY LINGKARAN TRANS JHM CONSOLIDATIO SENI JAYA CORP SIG GASES BHD MUHIBBAH ENGR GAMUDA BHD SOLID AUTOMOTIVE BINTULU PORT HLD KOTRA IND BHD SUPERMAX CORP YINSON HLDGS BHD Price 9.32 13.22 1.12 3.74 2.13 3.60 2.20 1.08 1.37 5.75 2.91 0.60 0.88 2.76 5.29 1.02 5.75 1.83 1.72 3.52 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 9.53 13.37 1.19 3.81 2.18 3.65 2.24 1.12 1.41 5.78 2.94 0.63 0.91 2.78 5.31 1.04 5.77 1.85 1.74 3.53 9.90 13.84 1.32 4.01 2.31 3.87 2.50 1.19 1.50 5.90 3.15 0.69 1.09 2.86 5.37 1.09 5.95 1.95 1.80 3.61 10.26 14.30 1.44 4.21 2.43 4.10 2.76 1.25 1.59 6.01 3.37 0.74 1.28 2.93 5.43 1.15 6.12 2.05 1.87 3.68 24.15 40.05 34.02 37.58 21.75 18.96 26.55 26.63 35.52 37.49 36.41 32.95 30.77 42.54 35.42 18.32 36.15 34.47 28.08 39.49 9.84 13.73 1.29 3.96 2.26 3.79 2.42 1.18 1.48 5.89 3.08 0.68 1.04 2.84 5.36 1.07 5.91 1.92 1.78 3.58 9.88 13.78 1.27 3.97 2.33 3.91 2.53 1.18 1.47 5.89 3.17 0.70 1.14 2.83 5.39 1.12 5.99 1.95 1.82 3.59 10.07 13.79 1.24 3.88 2.35 3.98 2.50 1.23 1.43 5.89 3.00 0.72 1.07 2.76 5.38 1.18 6.03 1.96 1.86 3.58 Vol 20-day avg vol 110,800 226,800 5,846,300 2,218,000 363,200 511,700 775,100 5,907,000 1,090,900 649,000 1,138,000 100 4,108,700 1,900 6,673,900 60,700 14,700 5,000 1,253,500 747,500 55,170 189,955 1,874,435 1,506,095 322,370 311,390 125,055 2,177,915 1,245,195 229,505 760,305 155 4,652,790 645,810 4,437,500 64,885 11,470 9,700 732,175 800,505 Raw data sourced from Bloomberg 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, September 26, 2017, 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 – 2031 6608 www.ta.com.my Page 2 of 2
20. Tuesday , 26 September, 2017 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 ( A US ) 2. Fore i gn Te ch n i ca l St o c k W at ch ( HK ) 3. 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 – 2031 6608 www.ta.com.my