Bursa Malaysia Daily Market Report - 27 May

Transcription

1. Monday , 27 May, 2019 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1 . Da ily M a rk e t C o m m e n ta r y 2 . We e k ly S t ra t e g y 3 . We e k ly T e c h n ic a l O u t lo o k Fu nd a me n tal Rep o r ts 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. C S C S t e e l H o l d in g s B h d : C a u t io u s O u t lo o k A h e a d En g t e x G ro u p Be rh a d : O u t lo o k R e m a in s C h a ll e n g in g Ib ra c o Bh d : T ra d i tio n a l l y S lo w Q u a r te r In a r i A m e rt ro n Be rh a d : E f f o r t s o n D r iv in g Gr o w th A re I n t a c t IP O_ H P M T H o l d in g s B e rh a d : C u t t in g T o o l s E x p e r t K o s s a n Ru b b e r I n d u s t r ie s Be rh a d : St ro n g S ta rt to F Y 1 9 M a la ys i a n Ec o n o m y : M o de st I n f la t io n M a la ys i a n P a c if ic In d u s t r ie s Be r h a d : Gro w th T ra je c to ry A f f e c te d b y T ra de Sp a t M IS C Be r h a d : Bo o st e d b y S tro n g e r P e t ro le u m C h a rt e r R a te s P e c c a G r o u p Be r h a d : L o o k in g Go o d P e t ro n a s C h e m ic a ls G ro u p B h d : U S- C h in a T ra de Wa r P re ss o n Pro du c t P ric e s Te ch n ic al R ep o rt s 1 . We e k ly T e c h n ic a l S to c k Wa tc h 2 . Da ily M o n e y F lo w o f T e c h n ic a l S to c k W a tc h FBMKLCI 3 . We e k ly A c e M a r k e t S to c k W a tc h 4 . We e k ly S m a l l C a p S to c k Wa tc h 5 . We e k ly S to c k Sc re e n 6 . We e k ly F o re ig n Sto c k W a tc h (A U S , H K , F S S T I & U S ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
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Daily Market Commentary Monday , 27 May 2019 TA Research, e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (24.05.2019) Volume (mil) +/-chg (RMmn) Main Market 1,153.1 Warrants 325.7 ACE Market 413.7 Bond 2.3 ETF 0.0 LEAP 0.1 Total 1,894.9 Off Market 260.5 -358.6 -118.3 -6.9 1.0 0.0 (0.5) 1,400.6 86.1 63.0 0.2 0.0 0.0 1,549.9 169.1 43.9 -520.0 -34.4 -7.9 0.0 0.0 0.0 -42.9 Major Indices Index +/- chg Malaysia FBMKLCI 1,598.32 FBMEMAS 11,187.92 FBMSCAP 12,403.58 May Futures 1,599.50 Other Markets DOW JONES 25,585.69 NASDAQ (US) 7,637.01 FTSE (UK) 7,277.73 NIKKEI (JAPAN) 21,117.22 KOSPI (KOREA) 2,045.31 HANG SENG (HK) 27,353.93 FSSTI (S'PORE) 3,169.89 SET (BANGKOK) 1,614.12 JCI (JAKARTA) 6,057.35 SHANGHAI 2,853.00 SHENZHEN 1,496.03 AUSTRALIA 6,456.04 Off Market (mn) MTRONIC 200.0 @ BORNOIL-WC 26.0@ APFT 11.0 @ CHHB 10.0 @ SEDANIA 4.8 @ MERIDIAN 2.5 @ HALEX 1.6 @ QL 1.3 @ (RM) 0.08 0.03 0.02 1.50 0.15 0.16 0.78 6.68 Exchange Rate USD/MYR 4.1856 -0.008 USD/JPY 109.68 -0.360 EUR/USD 1.119 0.0050 Review & Outlook Value Value/ +/-chg Volume Up Down -3.55 -21.81 -0.27 -1.00 1.21 0.26 0.15 0.08 3.28 0.16 0.82 0.17 259 52 27 1 1 2 342 299 109 37 1 3 0 449 % chg % YTD chg -0.22 -0.19 0.00 -0.06 -5.46 -2.95 9.78 -5.44 Mkt Cap. (RM’mn) MAYBANK 99,337 TENAGA 65,627 IHH 46,579 MAXIS 41,975 HLBANK 39,276 NESTLE 34,260 SIMEPLT 31,187 MISC 29,104 PETDAG 24,419 GENTING 24,182 Chg (RM) -0.03 -0.12 -0.05 -0.02 -0.10 -0.80 -0.13 -0.02 -0.12 -0.05 Crucial supports for the index stays at 1,579 and 1,550, which are the respective 123.6% and 138.2% Fibonacci Projection (FP) targets of the correction from last year's 28 August peak of 1,826 to the 18 December through of 1,626. Overhead resistance remains at 1,626, then 1,647 followed by 1,657, and next at 1,674, matching the 76.4%FR level. Meantime, core banking stocks and defensive telcos such as CIMB, Maybank, Axiata and DiGi.com should attract bargain hunters on weakness, while oil & gas and construction lower liners like Dialog Group, Hibiscus Petroleum, Gadang and Sunway Construction should also attract buyers on domestic rotational plays. 95.22 0.37 9.68 8.73 0.11 15.10 46.69 0.65 8.17 -33.92 -0.16 5.51 -14.28 -0.69 0.21 86.80 0.32 5.84 9.17 0.29 3.30 4.33 0.27 3.21 24.66 0.41 -2.21 0.48 0.02 14.40 -7.35 -0.49 18.00 Top 10 KLCI Movers Based on -35.75 -0.55 14.34 Mkt Cap. Counter Given the weak technical momentum and market undertone following last week's feeble rebound attempt and failure by the local benchmark index to sustain above the 1,600-point mark, more downside bias is anticipated towards the end of this month.With persisting uncertainties from global trade tensions bogging down sentiment as any sort of lasting deal between the world's two largest economies not likely to be sealed in the near-term, stocks should drift lower on muted trade, pending more clarity on the trade war front. Vol. (mn) 4.78 2.63 10.28 1.55 0.43 0.11 3.10 1.78 0.69 3.01 Commodities Futures Palm Oil (RM/mt) 2,014.00 -3.00 Crude Oil (Brent) 69.26 1.26 Gold ($/tr.oz.) 1,284.30 1.30 Important Dates PHB - 3:1 Rights Issue - RI of up to 5,990.9m shares together with up to 3,999.9m warrants. 3 rights shares together with 2 warrants for every 1 existing share held, at an issue price of RM0.01 per rights share. Ex-Date: 23/05/2019. Entitlement Date: 24/05/2019. Trading of Rights: 27-31/05/2019. Application Closed: 12/06/2019. LISTING ON: 25/06/2019. News Bites • Taliworks Corporation Bhd said its wholly-owned unit Sungai Harmoni Sdn Bhd has completed its negotiations with Pengurusan Air Selangor Sdn Bhd. • Dayang Enterprise Holdings Bhd said it has won a contract to provide procurement, construction, installation, hook-up and commissioning services for Roc Oil (Sarawak) Sdn Bhd. • D'nonce Technology Bhd aims to raise gross proceeds of at least RM8.0mn via a renounceable rights issue to repay part of its bank borrowings. • Petronas Chemicals Group Bhd announced a 25% drop in 1QFY19 net profit to RM802.0mn from RM1.1bn a year earlier as revenue fell due to lower product prices and sales volume. • MISC Bhd announced a 64.4% jump in 1QFY19 net profit to RM510.5mn from RM310.6mn a year ago, buoyed by higher vessel utilisation and better rates. • Kossan Rubber Industries Bhd's 1QFY19 net profit increased 31.9% to RM58.7.mn from RM44.5mn a year ago due to better performance from its core business segments. • Eastern & Oriental Bhd posted a 16.3% increase in net profit for its fourth quarter ended March 31, 2019 to RM38.2mn from RM32.9mn a year ago, supported by continued strong inventory sales and recognition of progressive billings on handover of Tamarind and Ariza Seafront Terrace. • Malaysian Pacific Industries Bhd's net profit plunged 35.5% to RM16.8mn in its third quarter ended March 31, 2019 from RM26.0mn a year ago, hit by a fall in contribution from its overseas segments and forex loss. • Malayan Flour Mills Bhd is starting 2019 on a strong note - its net profit of RM19.9mn in 1QFY19 rose more than tenfold from the RM1.6mn recorded a year ago. • Malaysia's consumer price index rose 0.2% in April 2019 from a year earlier, matching the pace in March 2019. • Japan's government trimmed its economic assessment citing weak exports and industrial production, according to the monthly report released by the Cabinet Office. • Singapore's industrial production unexpectedly grew in April, helped by higher pharmaceutical manufacturing, data showed. • US orders for long-lasting manufactured goods fell by the most in six months in April, with the weaker-than-expected result driven by a decline for the transportation sector. • The Trump administration's latest increase in tariffs on Chinese imports is costing the average U.S. household USD831 a year through higher prices and reduced economic efficiency, according to the Federal Reserve Bank of New York. • Theresa May has said she will quit as Conservative leader on 7 June, paving the way for a contest to decide a new prime minister. • U.K. consumers unexpectedly kept up spending last month as retail sales beat economists' forecasts. 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. Monday , May 27, 2019 FBMKLCI:1,598.32 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Strategy Market View, News in Brief: Corporate, Economy, and Share Buybacks Kaladher Govindan Tel: +603-2167 9609 kaladher@ta.com.my www.taonline.com.my M a r k e t V i e w FBMKLCI to Drift Lower The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) drifted lower to end below the 1,600-mark in last week’s short three-day trading week as the US ban on Huawei’s products and access to US technology parts worsened the underlying sentiment. Oil & gas related stocks and semiconductor exporters led falls as global oil prices slumped below the USD70 per barrel level due to fallout from the intensifying US-China trade war. For the week, the FBM KLCI shed another 7.04 points, or 0.44 percent to 1,598.32, as gains on Public Bank (+10sen), IOI Corp (+5sen) and Top Glove (+6sen) were overshadowed by losses in Sime Darby (-15sen), Genting Berhad (-22sen), IHH Healthcare (-15sen), MAHB (23sen) and Petronas Gas (-24sen). Average daily traded volume and value shrank further to 2.02 billion shares and RM1.71 billion, respectively, compared to the 2.36 billion shares and RM1.88 billion average the previous week. The trade dispute between the US and China has escalated into an ugly trade war after President Trump more than doubled the 10% tariff to 25% on USD200 billion worth of imports from China and pressed the red alert button on Huawei while persuading its allies to follow suit with similar actions. China retaliated and appeared to be digging in for a protracted battle, signaling market uncertainties could extend into later part of June until presidents of both countries meet at the sideline of G20 meeting in Japan as there are no scheduled meetings in between among officials of both countries. The negative impact of trade war should be reflected in China’s industrial profit for April and purchasing managers’ index for May, which are due this week. However, there is some comfort for now that China may not pursue aggressive weakening of yuan to counter trade barriers, which will trigger competitive devaluation among regional currencies. This little hope came after a spokesman for the China Banking and Insurance Regulatory Commission warned speculators last Saturday that they would suffer “heavy losses” if they bet against the yuan. A weaker yuan is a bane for other trading nations, especially the smaller ones that rely heavily on exports to drive economic growth. China’s central bank appeared to be intervening in currency market to curb abrupt weakening of its currency as the weakest level seen post recent trade escalations was at 6.92 yuan against the USD, stronger than the 6.98 seen in last October. There is also an urgency to defend the currency amidst capital flights as President Trump has threatened last week to name China as currency manipulator and is also proposing tariffs on goods from countries found to be engaging in competitive devaluation of their currencies. Page 1 of 9
4. 27-May-19 On the local scene , this development along with the rebound in Brent crude oil prices last Friday may halt temporarily further sliding in ringgit, which has almost hit RM4.20 against the USD last week. However, outlook for the local currency remains weak amid current trade tensions and pullout risk of foreign funds from the local government bonds. With first quarter corporate earnings showing no excitement, foreign selling in the domestic equity market is not expected to abate anytime soon as well and could continue as the market heavyweights are not expected to deliver significant earnings surprises when the results reporting season ends this Friday. Thus, the FBMKLCI could remain in correction mode this week and next as investors offload ahead of the next festive holidays. That aside, the outcome of the European Union (EU) elections last week should have been known by now. Any signs of anti-EU parties gaining popularity should add to current uncertainty as it will not only affect decisions made in the European parliament but also influence the political landscape in member countries. These uncertainties at a time when the EU is staring at slower economic growth of 1.4% this year versus 2% in 2018 will heighten concerns about a global recession in the near future and dampen market sentiment further. There is also possibility for euro to weaken against major currencies, if the anti-EU parties gain support. 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 2 of 9
5. 27-May-19 N e w s I n B r i e f Corporate Taliworks Corporation Bhd (Not Rated) said its wholly-owned unit Sungai Harmoni Sdn Bhd has completed its negotiations with Pengurusan Air Selangor Sdn Bhd on the operations and maintenance of the Sungai Selangor Water Treatment Plant Works Phase 1. Taliworks said towards this end various agreements were executed by Sungai Harmoni and the relevant parties. (Bursa Malaysia / StarBiz) Dayang Enterprise Holdings Bhd (Not Rated) said it has won a contract to provide procurement, construction, installation, hook-up and commissioning services for Roc Oil (Sarawak) Sdn Bhd. The services will be provided under Roc’s Siprod (Simultaneous Production and Drilling) and Infill Drilling Campaign from 2019 to 2023. Value of the contract is based on work orders issued by Roc Oil throughout the four-year contract duration — with an option to extend for another one year — and will contribute positively to the group’s earnings during the period. (Bursa Malaysia / The Edge) D'nonce Technology Bhd (Not Rated) aims to raise gross proceeds of at least RM8.0mn via a renounceable rights issue to repay part of its bank borrowings, which as at May 23 totalled RM60.1mn. This involves the issuance of up to 315.1mn rights shares and 315.1mn irredeemable convertible preference shares (ICPS), on the basis of one rights share and one ICPS for every existing ordinary share in D'nonce. The rights issue comes with free detachable warrants on the basis of one free warrant-B for every two rights shares and two ICPS subscribed. (Bursa Malaysia / The Edge) Petronas Chemicals Group Bhd announced a 25% drop in 1QFY19 net profit to RM802.0mn from RM1.1bn a year earlier as revenue fell due to lower product prices and sales volume. Higher operating expenditure relating to maintenance activities also affected its bottom line. (Bursa Malaysia / The Edge) MISC Bhd announced a 64.4% jump in 1QFY19 net profit to RM510.5mn from RM310.6mn a year ago, buoyed by higher vessel utilisation and better rates. MISC said while 2019 as a whole is expected to be a better year for the tanker sector than 2018, continued Opec-led oil production cuts and the end of Iran oil waivers by the US are a concern as these may affect shipping volumes. (Bursa Malaysia / The Edge) TIME dotCom Bhd's (Not Rated) 1QFY19 net profit rose to RM63.1mn, from RM62.9mn posted a year ago. The company attributed its performance for the quarter to higher sales recorded from all core product segments led by data and data centre businesses, which grew 15.2% and 8.9%, respectively. (Bursa Malaysia / The Edge) Kossan Rubber Industries Bhd's 1QFY19 net profit increased 31.9% to RM58.7.mn from RM44.5mn a year ago due to better performance from its core business segments. The group attributed its better performance this quarter to improvements in its glove manufacturing, technical rubber products and cleanroom products segments. (Bursa Malaysia / The Edge) Eastern & Oriental Bhd (Not Rated) posted a 16.3% increase in net profit for its fourth quarter ended March 31, 2019 to RM38.2mn from RM32.9mn a year ago, supported by continued strong inventory sales and recognition of progressive billings on handover of Tamarind and Ariza Seafront Terrace. Full-year net profit fell 34.3% to RM61.9mn from RM94.3mn in FY18, as operating profit was dampened by holding costs for the acquisition of land by a joint venture that had lapsed. (Bursa Malaysia / The Edge) Page 3 of 9
6. 27-May-19 Hengyuan Refining Co Bhd (Not Rated) said lower margins dragged its net profit down by 75% to RM21.6mn in 1QFY19 from RM86.8mn a year ago. Hengyuan said operating margin for the quarter was weak due to oversupply of products in the region and said it expects refining margins and crude prices to remain volatile in the near term, based on published forward market prices. (Bursa Malaysia / The Edge) Malaysian Pacific Industries Bhd’s (MPI) net profit plunged 35.5% to RM16.8mn in its third quarter ended March 31, 2019 from RM26.0mn a year ago, hit by a fall in contribution from its overseas segments and forex loss. Cumulative nine-month period net profit stood 5% lower at RM98.3mn, compared with RM103.4mn previously. MPI anticipates the operating environment to remain challenging for the rest of the financial year ending June 30, 2019, due to uncertainties in the global economy. (Bursa Malaysia / The Edge) Malayan Flour Mills Bhd (MFM) (Not Rated) is starting 2019 on a strong note — its net profit of RM19.9mn in 1QFY19 rose more than tenfold from the RM1.6mn recorded a year ago. MFM attributed the improved performance to higher operating profit in the group’s flour and grains trading segment, supported by higher selling prices which lifted margins. (Bursa Malaysia / The Edge) Page 4 of 9
7. 27-May-19 N e w s I n B r i e f Economy Malaysi a Malaysia 's Inflation Steady at 0.2% YoY, Below Forecast Malaysia's consumer price index rose 0.2% in April 2019 from a year earlier, matching the pace in March 2019. April's annual inflation rate was below the 0.3% forecast in a Reuters poll. Inflation has been mild since the government scrapped an unpopular consumption tax in June 2018, while transport costs have fallen amid lower global oil prices. The main upward pressure on April inflation rate came from higher prices of housing and utilities, education, food and beverages, restaurants and hotels, data from the Statistics Department showed. Costs were down across all other sectors with the biggest declines seen in the indexes for transport and miscellaneous goods and services, the data showed. Earlier this month, the central bank cut its key interest rate for the first time since 2016, amid weak inflation and concerns over slowing economic growth. The central bank has said, however, that Malaysia did not face serious deflationary pressures. Headline inflation, which came in at 1.0% in 2018, was likely to average higher this year. (The Edge) Malaysia’s Economic Growth to Ease in July-Sept 2019 Malaysia’s economic growth is anticipated to ease in July to September 2019, says the Department of Statistics Malaysia. In the Malaysian Economic Indicators: Leading, Coincident and Lagging Indexes, March 2019 Report, Chief Statistician Datuk Seri Mohd Uzir Mahidin said the annual change of Leading Index (LI) showed an improvement to negative 1.7% from negative 2.8% in February, 2019. The composite of LI is designed to monitor the economic direction in an average of four to six months ahead. However, the monthly change of LI augmented in March 2019, increased by 0.7% to 117.1 points from 116.3 points in the previous month, mainly due to the increase of Real Money Supply, M1 (0.4%) and Real Imports of Other Basic Precious & Other Non-ferrous Metals (0.3%). On the same note, he stated the Coincident Index (CI) which examined the current economic activity, decreased 0.1% in the reference month. Three out of six components weighed down the performance of the CI, mainly real salaries & wages in manufacturing sector (-0.3%). (Malay Mail) Malaysia’s Labour Productivity Grows in 1Q19 — MITI Malaysia’s labour productivity continued to rise in the first quarter of 2019 (1Q2019), thanks to higher employment, as well as higher value added, the Ministry of International Trade and Industry (MITI) said in a statement. Value added per hour worked by all persons — including employees, proprietors, and unpaid family workers — rose by 2.4%, thanks to growth of value added by 4.5% and total hours worked by 2%, while value added per person increased by 2.2%, based on constant price 2015. Its minister Datuk Darell Leiking said across the five main economic sectors, the construction sector continues to register highest growth in productivity per hour worked at 4.5%, followed by manufacturing at 3.4%, agriculture at 3%, and services at 2.9%. Meanwhile, the mining and quarrying sector experienced a contraction of 0.8%. The construction sector’s performance was mainly due to growth in value added of 0.3%, while at the same time experiencing a contraction in employment by 4%. Meanwhile, the services sector’s higher labour productivity was underpinned by higher growth in the wholesale and retail trade subsector (5.7%), real estate and business services subsectors (5.3%), and transport and storage (4.9%). As for the manufacturing sector, its main growth driver was the wood products, furniture, paper products and printing subsector (9.9%), followed by transport equipment, other manufacturing and repair subsector (6.7%); and petroleum, chemical, rubber and plastics products subsector (5.6%). In terms of labour productivity per person employed, the construction sector again registered the highest labour productivity growth at 4.5%, while the agriculture sector rebounded to 3.4%, from the 0.3% contraction experienced in the previous quarter. The services sector grew by Page 5 of 9
8. 27-May-19 2 .9%, mining and quarrying sector by 2.6%, and the manufacturing sector by 2%. (The Edge) Raya Toll Discount to be Announced on Tuesday The government will announce the discount for PLUS Highway tolls during the Hari Raya Aidilfitri festive season this upcoming Tuesday (May 28). This was confirmed by PLUS Malaysia Bhd managing director Datuk Azman Ismail at the launch of PLUS' first ever web short film in conjunction with the Hari Raya festivities here. “The announcement will be made by YB Baru Bian on Tuesday at 4pm." said Azman at a press conference after the launch. PLUS launched a four-minute web film "Tumpang", which underlined some of the programmes to be initiated by the PLUS team during the festive period from May 30 to June 10. Also featured was the revamped PLUSMiles mobile app, which now allows easier redemption of PLUSMiles points received upon travelling through select PLUS highways at one point per kilometre. The points can be used to redeem toll charges, as well as goods and services throughout the listed highways, including food and beverages. The PLUSMiles app also allows users to plan their journey better by underlining toll fares, as well as provide CCTV footages of traffic flow along the travel path from 1,400 CCTVs installed by the group. For the May 29 to June 12 period, PLUS has underlined several recommendations to ease traffic congestion and reduce accidents. (The Edge) Transport Ministry Wants Airlines to Have More Local Flights for Raya Season The Transport Ministry has asked airline companies to increase the number of domestic flights especially during the current festive season for passengers to have pricing options. Its minister Anthony Loke Siew Fook said that when flight ticket offers were higher, then the average price of a flight would also drop slightly. "The prices are usually high when there are only a few seats left on a flight. Not every seat on the flight can fetch a high price. It (ticket price) increases when there is a high demand and when there are only a few seats available (in a flight), then the price is bound to increase," he said when asked to comment on charges regarding the prices of airline tickets for domestic flights ahead of Aidilfitri early next month. Loke said this after launching Ekspres Musafir at the Integrated Bus Terminal, here today. Also present were the Land Public Transport Agency (APAD) director-general Azlan Shah Parames Albakri and Malaysian Institute of Road Safety Research (MIROS) director-general Dr Siti Zaharah Ishak. (The Edge) RON97 Up by Eight Sen, RON95 and Diesel Unchanged The fuel price of RON97 increased by eight sen per litre while RON95 and diesel prices remained the same for the week starting Saturday (May 25). The Finance Ministry said the price of RON97 increased from RM2.68 per litre to RM2.76 per litre. Meanwhile, RON95 petrol and diesel prices stay the same at RM2.08 per litre and RM2.18 per litre respectively. Note that, the government needs to spend an estimated RM126.52mn between May 25 and May 31 to subsidise both RON95 and diesel prices. The weekly fuel pricing mechanism was reintroduced on Jan 5 under the APM. Under this system, weekly fuel prices are announced every Friday and remain in force for one week. (The Star) Asia Japan All Industry Index Falls Further in March Japan's all industry activity fell further in March, figures from the Ministry of Economy, Trade and Industry showed on Friday. The all industry activity index declined 0.4% monthon-month in March, following a 0.2% drop in February. Economists had forecast a monthly fall of 0.2%. Among components, construction industry activity increased 0.3%, slower than 1.5% rise in February. At the same time, industrial production declined 0.6%, reversing a 0.7% gain in February. Tertiary industry activity fell 0.4%, following a 0.6% decline in February. On a yearly basis, all industry activity dropped 0.4% in March, after a 0.3% increase in the previous month. (RTT) Page 6 of 9
9. 27-May-19 Japan Lowers Economic Assessment Japan 's government trimmed its economic assessment citing weak exports and industrial production, according to the monthly report released by the Cabinet Office. Nonetheless, the government said the Japanese economy is recovering at a moderate pace. Downgrading the assessment of industrial production, the office said, "Industrial production is in a weak tone recently." The government also lowered its view on business investment. The report said business investment is on the increase at a moderate pace, while weakness is seen recently in machinery investment. Amid escalating US-China trade disputes, the cabinet office said exports are in a weak tone. The office added that looking ahead to the consumption tax rate hike planned for October 1, 2019, the government will take all possible measures towards economic and fiscal management. (RTT) Singapore's Factory Output Rises 0.1%, Beats Forecasts Singapore's industrial production unexpectedly grew in April, helped by higher pharmaceutical manufacturing, data showed. Manufacturing output in April rose 0.1% from a year earlier, data from the Singapore Economic Development Board showed, recovering from the revised 4.3% decline in March. The median forecast in a Reuters survey predicted a 3.5% contraction. On a month-on-month and seasonally adjusted basis, industrial production also beat expectations with a 2.4% rise in April, after declining a revised 2.5% in March. The median forecast was for a fall of 1.3% for April. The surprise was helped by growth of pharmaceutical output, which grew 10.9% in April from a year earlier after growing 15.8% the month before. Electronics output in April, however, continued to decline, falling at 0.6% from a year ago after declining 15.1% in March. (The Star) United States US Durable Goods Orders Fall by the Most in Six Months in April US orders for long-lasting manufactured goods fell by the most in six months in April, with the weaker-than-expected result driven by a decline for the transportation sector. Durable goods orders fell 2.1% last month to USD248.4bn from March’s 1.7% gain, which had been revised lower from 2.6%, the US commerce department said. Although the monthly numbers can be volatile, the recent run of data have been patchy — with orders falling by the most in four months in February — and raising concerns about the health of the US economy. Stripping out the volatile transportation sector, there was zero growth in orders during April, which seemed an improvement from March’s downwardly revised 0.5% fall (from a 0.3% gain previously), but missed the median forecast for 0.2% growth in a survey of economists. Orders for non-defense capital goods excluding aircraft, which are regarded as a proxy for business investment, were down 2.5%, the biggest decline since January 2018. (Financial Times) Latest China Tariffs Will Cost $831 per Household, Report Says The Trump administration’s latest increase in tariffs on Chinese imports is costing the average U.S. household USD831 a year through higher prices and reduced economic efficiency, according to a paper published by the Federal Reserve Bank of New York. The tariffs, which essentially impose taxes on imported goods, will result in higher prices paid by importers and consumers, the New York Fed’s report said. In addition, it said, the U.S. economy stands to take a hit as companies buy more from suppliers outside China at prices higher than they paid before the tariffs. That shift means U.S. importers are paying more, but the additional money isn’t going into the U.S. Treasury. The boost in the tariff rate is likely to accelerate the shift to other suppliers, the New York Fed report said. These higher tariffs are likely to create large economic distortions and reduce U.S. tariff revenues. Page 7 of 9
10. 27-May-19 Mr . Trump this month raised the tariff rate on approximately USD200bn in goods imported from China to 25% from 10% as talks on a deal to remove the levies hit an impasse. The Trump administration is also considering tariffs on most of the remaining USD300bn in imports from China, but the Fed paper didn’t consider those tariffs when estimating the impact on households. Mr. Trump has sought to use tariffs to reduce the trade balance, shift manufacturing back to the U.S. and bring trading partners to the negotiating table to improve overseas conditions for U.S. exporters and investors. (WSJ) Eurozone Theresa May Quits: UK Set For New PM by End of July Theresa May has said she will quit as Conservative leader on 7 June, paving the way for a contest to decide a new prime minister. In an emotional statement, she said she had done her best to deliver Brexit and it was a matter of "deep regret" that she had been unable to do so. Mrs May said she would continue to serve as PM while a Conservative leadership contest took place. The party said it hoped a new leader could be in place by the end of July. It means Mrs May will still be prime minister when US President Donald Trump makes his state visit to the UK at the start of June. Asked about the prime minister's announcement, Mr Trump said: "I feel badly for Theresa. I like her very much. She's a good woman. She worked very hard. She's very strong." Mrs May said she would step down as Tory leader on 7 June and had agreed with the chairman of Tory backbenchers that the contest to replace her should begin the following week. Foreign Secretary Jeremy Hunt has become the latest MP to say that he will run, joining Boris Johnson, Esther McVey and Rory Stewart. More than a dozen other MPs are believed to be seriously considering entering the contest. (BBC) U.K. Retail Sales Better Than Expected in April on Clothing U.K. consumers unexpectedly kept up spending last month as retail sales beat economists’ forecasts. The volume of goods sold in stores and online was unchanged following three consecutive months of gains, the Office for National Statistics said Friday. Expectations were for a 0.3% drop. The good news may not last. A separate survey for the month of May by the Confederation of British Industry showed a dismal picture of business conditions for retailers, with investment intentions reaching a record low and employment declining. Sales in April were boosted by warm weather and a record three-month growth rate for online purchases, the ONS said. Gains in non-store retailing climbed 9.4% in the quarter through April, led by clothing. Sales at department stores and household goods shops declined in the quarter through April. Textile, clothing and footwear sales rose 2.2%, and gained 3% in other stores. Record employment and rising real incomes are helping to underpin consumer spending, the largest part of the economy, in the face of the crisis over Britain’s departure from the European Union. Sales were up 5.2% from a year earlier, also beating forecasts. While consumers are helping keep the U.K. economy growing, businesses are cutting spending, fearing an economic slowdown could turn into a slump if the U.K. ends up leaving the EU without a deal to cushion the blow. The retail figures contrast with the problems flagged by many well-known companies on the British high street. Shares of Thomas Cook Group, which invented the package holiday in Victorian England, plummeted to their lowest in more than seven years on Monday. On Tuesday, celebrity chef Jamie Oliver’s U.K. restaurant business slid into insolvency. The CBI said volumes for the year to May dropped at their fastest pace since October 2017 as orders and investment plans declined. The only sub-sector to post a rise in sales was non-store retailing, it said. (Bloomberg) Page 8 of 9
11. 27-May-19 N e w s I n B r i e f Share Buy-Back Share Buy-Back : 24 May 2019 Company ANCOM BKAWAN BONIA FIAMMA FIMACOR KERJAYA MALAKOF MBL NYLEX P&O RCECAP SUNWAY SYF SYSCORP TITIJYA TROP Bought Back Price (RM) Hi/Lo (RM) 20,000 9,600 131,900 980,000 8,100 50,000 430,000 100,000 178,400 4,200 19,900 441,700 180,000 60,000 2,755,400 215,000 0.465/0.46 16.720 0.28 0.48 1.90/1.89 1.21/1.20 0.795/0.79 1.34 0.64/0.61 1.00/0.99 1.59 1.68 0.20/0.195 0.30 0.29/0.28 0.87/0.865 0.465/0.46 16.74/16.72 0.275/0.27 0.48 1.92/1.89 1.21/1.18 0.80/0.785 1.38/1.28 0.64/0.61 1.00/0.99 1.60/1.57 1.68/1.66 0.20/0.195 0.30/0.285 0.29/0.285 0.87/0.855 Total Treasury Shares 9,497,959 39,868,931 9,216,800 32,094,100 5,256,200 8,669,200 112,828,700 2,782,800 14,077,424 15,005,493 19,357,225 40,683,430 22,745,800 28,062,400 67,979,000 38,676,242 Source: Bursa Malaysia TA RESEARCH – Remisiers’ Briefing Topic: Weekly Market Outlook Speaker: Mr. Kaladher / Mr. Stephen Soo Venue: Multi Purpose Hall III, 10th Floor Menara TA One Date: 27 May 2019 (Monday) Time: 12.40pm This briefing is an exclusive invitation to Remisiers, Dealers and selective personnel only 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 9 of 9
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) Beta EPS (sen) PER (X) Div Yield (%) FY19 FY20 FY19 FY20 FY19 FY20 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 24-May-19 AUTOMOBILE BAUTO 2.29 2.93 27.9% Buy 2,656 0.61 21.8 23.1 10.5 9.9 7.1 7.6 2.48 -7.7 1.80 27.2 6.5 MBMR 2.86 3.36 17.5% Buy 1,118 0.61 40.5 42.0 7.1 6.8 2.1 2.1 3.08 -7.1 1.86 53.8 30.0 45.6 PECCA 1.07 1.28 19.6% Buy 196 0.78 9.4 10.3 11.4 10.4 6.5 7.5 1.15 -7.0 0.69 56.2 SIME 2.20 2.78 26.4% Buy 14,962 1.65 16.3 15.3 13.5 14.4 4.5 4.2 2.74 -19.7 2.04 7.8 -8.3 UMW 5.25 5.42 3.2% Sell 6,134 0.65 39.6 41.1 13.3 12.8 1.3 1.3 6.79 -22.7 4.20 25.0 -4.0 BANKS & FINANCIAL SERVICES ABMB 3.66 4.30 17.5% Buy 5,666 0.77 36.1 39.6 10.1 9.2 4.4 4.4 4.49 -18.5 3.57 2.5 -9.0 AFFIN 2.06 2.50 21.4% Buy 4,091 0.88 26.7 28.7 7.7 7.2 4.9 4.9 2.63 -21.7 2.05 0.5 -7.6 AMBANK 4.33 4.70 8.5% Hold 13,051 1.22 45.3 48.3 9.6 9.0 4.2 4.2 4.64 -6.7 3.51 23.4 -0.2 CIMB 5.15 5.80 12.6% Buy 50,096 1.45 50.9 55.0 10.1 9.4 5.0 5.4 6.56 -21.5 5.00 3.0 -9.8 HLBANK 19.20 21.90 14.1% Buy 39,276 0.92 136.5 147.2 14.1 13.0 2.5 2.5 21.66 -11.4 17.56 9.3 -5.9 MAYBANK 8.99 9.30 3.4% Hold 99,337 0.92 77.3 82.5 11.6 10.9 6.5 6.5 10.74 -16.3 8.68 3.6 -5.4 PBBANK 22.52 22.90 1.7% Sell 87,426 0.83 147.6 157.5 15.3 14.3 3.1 3.1 26.16 -13.9 22.02 2.3 -9.0 RHBBANK 5.65 6.30 11.5% Hold 22,657 1.09 60.0 64.0 9.4 8.8 3.9 3.9 6.07 -6.9 5.05 11.9 6.8 BURSA 6.08 6.30 3.6% Sell 4,909 0.83 26.4 27.7 23.1 22.0 3.9 3.9 7.96 -23.6 6.03 0.8 -11.1 ANNJOO 1.47 1.37 -6.8% Sell 792 1.75 19.4 20.6 7.6 7.1 5.6 5.8 2.66 -44.7 1.15 27.8 17.6 CHINHIN 0.75 0.70 -6.0% Sell 410 1.06 6.1 7.9 12.2 9.5 1.3 2.7 0.96 -22.4 0.63 18.3 2.8 CHINWEL 1.79 2.08 16.2% Buy 526 0.86 20.2 21.8 8.9 8.2 4.5 4.7 2.00 -10.5 1.49 20.1 10.5 13.0 BUILDING MATERIALS CMSB 3.04 3.78 24.3% Buy 3,261 1.68 20.8 21.6 14.6 14.1 2.6 3.3 3.92 -22.4 1.99 52.8 CSCSTEL 1.06 1.10 3.8% Sell 391 1.08 8.0 9.7 13.2 11.0 4.2 5.0 1.40 -24.3 0.98 8.7 3.9 ENGTEX 0.78 0.80 2.6% Sell 340 1.04 2.8 4.5 27.4 17.5 1.0 1.0 1.23 -36.6 0.77 1.3 -5.5 GADANG 0.81 0.98 21.7% Buy 533 1.68 9.6 11.9 8.4 6.8 2.5 2.5 0.96 -16.1 0.48 69.5 57.8 GAMUDA 3.22 3.22 0.0% Hold 7,950 1.46 25.4 27.8 12.7 11.6 3.7 3.7 4.26 -24.4 2.00 61.0 37.6 CONSTRUCTION Note: GAMUDA proposed 1 for 4 rights issue warrants. For more details please refer to 17.12.18 report. GDB 0.28 0.33 20.0% Hold 172 na 4.1 3.4 6.7 8.2 5.5 5.5 0.45 -38.9 0.22 25.0 19.6 IJM 1.90 2.16 13.7% Sell 6,889 1.49 8.5 9.9 22.4 19.2 2.1 2.6 2.37 -19.8 1.39 36.7 17.3 KAB 0.21 0.31 48.8% Buy 69 na 3.2 3.2 6.5 6.4 4.9 4.9 0.31 -33.9 0.19 10.8 5.1 PESONA 0.23 0.26 15.6% Buy 156 1.41 2.7 2.7 8.2 8.2 4.4 4.4 0.37 -38.4 0.17 32.4 18.4 -40.3 SENDAI 0.40 0.52 30.0% Hold 312 1.42 8.7 8.6 4.6 4.7 2.5 2.5 1.09 -63.3 0.39 2.6 SUNCON 1.90 1.64 -13.7% Sell 2,455 1.30 11.0 11.7 17.3 16.2 4.2 4.2 2.09 -9.1 1.30 46.2 42.9 WCT 0.93 0.91 -1.6% Sell 1,278 1.32 4.7 5.8 19.8 15.9 3.2 3.2 1.16 -20.3 0.66 40.2 37.0 LITRAK 4.27 5.11 19.7% Buy 2,255 0.60 42.8 41.5 10.0 10.3 5.9 5.9 5.90 -27.6 3.72 14.8 2.9 CARLSBG 24.28 25.90 6.7% Hold 7,469 0.59 95.9 100.5 25.3 24.2 3.9 4.1 27.34 -11.2 17.06 42.3 23.5 HEIM 23.76 27.00 13.6% Buy 7,178 0.61 104.1 110.7 22.8 21.5 4.3 4.5 25.10 -5.3 17.42 36.4 16.1 AEON 1.41 1.75 24.1% Hold 1,980 0.65 10.0 10.6 14.0 13.3 3.5 3.9 2.51 -43.8 1.38 2.2 -4.1 AMWAY 6.05 7.76 28.3% Buy 995 0.72 37.5 40.5 16.2 14.9 5.0 5.4 7.90 -23.4 5.53 9.4 2.1 F&N 33.60 28.77 -14.4% Sell 12,324 0.84 121.6 126.1 27.6 26.6 2.0 2.2 40.00 -16.0 29.20 15.1 0.3 CONSUMER Brewery Retail HUPSENG 0.97 1.24 27.8% Buy 776 0.46 5.3 6.0 18.2 16.3 6.2 6.2 1.16 -16.4 0.94 3.2 2.1 JOHOTIN 1.37 1.57 14.6% Buy 425 1.17 12.1 14.3 11.3 9.5 3.6 4.4 1.60 -14.4 0.84 64.1 42.7 NESTLE 146.10 159.60 9.2% Hold 34,260 0.61 310.0 332.9 47.1 43.9 2.2 2.3 150.60 -3.0 142.80 2.3 -0.9 PADINI 3.73 4.28 14.7% Buy 2,454 0.67 22.8 25.6 16.4 14.6 3.1 3.2 6.20 -39.8 3.15 18.4 6.3 POHUAT 1.50 1.88 25.3% Buy 332 0.64 22.6 23.7 6.7 6.3 5.3 5.3 1.64 -8.5 1.25 20.0 0.0 QL 6.70 6.58 -1.8% Sell 10,870 0.74 13.5 15.5 49.8 43.2 0.7 0.7 7.63 -12.2 5.17 29.6 -1.6 SCIENTX 8.59 9.80 14.1% Buy 4,369 0.83 62.5 75.6 13.7 11.4 2.4 2.7 9.48 -9.4 6.51 32.0 -2.9 SIGN 0.49 0.40 -17.5% Buy 109 0.75 2.1 4.6 23.0 10.5 3.1 3.7 0.68 -28.1 0.32 54.0 44.8 33.02 35.22 6.7% Sell 9,428 0.87 138.5 143.7 23.8 23.0 3.9 4.1 38.68 -14.6 30.50 8.3 -8.5 GENTING 6.28 6.84 8.9% Hold 24,182 1.09 49.9 57.2 12.6 11.0 2.2 2.5 8.89 -29.4 5.85 7.3 4.0 GENM 3.09 3.25 5.2% Sell 17,470 1.38 17.1 23.5 18.0 13.2 2.6 3.2 5.23 -40.9 2.70 14.6 4.8 2.48 2.21 -10.9% Sell 3,341 0.73 22.0 20.0 11.3 12.4 6.0 5.6 2.65 -6.4 2.01 23.4 17.5 40.0 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical DPHARMA 1.33 1.62 21.8% Buy 880 0.64 7.9 8.4 16.8 15.9 4.2 4.5 1.49 -10.7 0.93 43.8 IHH 5.31 5.52 4.0% Sell 46,579 0.61 11.0 12.5 48.4 42.6 0.5 0.6 6.37 -16.6 4.54 17.0 -1.5 KPJ 0.93 1.17 26.5% Hold 3,998 0.66 4.4 4.8 21.0 19.2 2.3 2.5 1.17 -20.9 0.88 5.1 -11.1 HARTA 5.15 4.31 -16.3% Sell 17,230 0.96 13.6 14.9 37.8 34.5 1.6 1.7 7.45 -30.9 4.52 13.9 -16.1 KOSSAN 3.82 5.10 33.5% Buy 4,886 0.61 19.3 21.3 19.8 18.0 2.0 2.2 4.72 -19.1 3.44 11.0 -12.0 SUPERMX 1.61 1.77 9.9% Buy 2,104 0.95 9.9 10.6 16.3 15.2 2.8 3.1 2.31 -30.2 1.30 23.8 -7.5 TOPGLOV 5.00 4.71 -5.8% Hold 12,782 0.42 17.6 19.2 28.4 26.1 1.8 1.9 6.36 -21.4 4.24 18.1 -10.7 ASTRO 1.24 1.60 29.0% Hold 6,466 1.23 10.8 12.3 11.5 10.1 7.3 8.5 1.97 -37.1 1.05 18.1 -4.6 MEDIA PRIMA 0.40 0.35 -12.5% Sell 444 0.92 -4.2 -2.4 na na 0.0 0.0 0.60 -33.3 0.33 23.1 15.9 STAR 0.64 0.69 7.8% Sell 472 1.01 1.9 2.0 34.2 31.3 0.4 0.4 1.28 -50.0 0.62 3.2 -6.6 Rubber Gloves MEDIA
13. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) LCTITAN 3.07 MHB 0.67 MISC PANTECH Market Cap. % upside Recom 3.40 10.7% Sell 6,978 0.74 10.4% Sell 1,072 6.52 6.30 -3.4% Sell 0.50 0.73 46.0% (RMm) Beta EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg FY19 FY20 FY19 FY20 FY19 FY20 High Price % Chg Low Price % Chg YTD 0.99 22.8 30.0 13.5 10.2 3.6 4.6 5.45 -43.7 2.92 5.1 -33.5 1.59 -2.7 1.2 na 56.1 0.0 0.0 0.87 -22.5 0.50 35.4 22.9 29,104 0.92 38.4 42.0 17.0 15.5 4.6 4.6 7.22 -9.7 5.03 29.6 -2.7 Buy 375 0.99 6.4 7.0 7.9 7.1 4.0 4.2 0.64 -21.7 0.41 21.7 16.1 -5.8 OIL & GAS PCHEM 8.75 9.10 4.0% Hold 70,000 0.79 49.7 56.0 17.6 15.6 2.9 3.2 10.20 -14.2 7.93 10.3 SERBADK 4.00 4.65 16.3% Buy 5,874 1.13 31.0 33.5 12.9 11.9 2.3 2.5 4.28 -6.5 3.06 30.7 5.8 UZMA 0.80 1.35 -18.2% Buy 13,556 1.64 11.3 13.2 7.0 6.0 0.0 0.0 1.51 -47.4 0.55 44.5 38.3 VELESTO 0.27 0.34 25.9% Buy 2,218 1.82 0.2 0.4 138.4 70.6 0.0 0.0 0.33 -16.9 0.17 63.6 50.0 FGV 1.15 1.01 -12.2% Under Review 4,195 1.57 -1.8 -1.5 na na 0.0 0.0 1.78 -35.4 0.63 82.5 60.8 IJMPLNT 1.45 1.04 -28.3% Sell 1,277 0.88 2.2 5.0 65.4 28.8 2.1 2.1 2.61 -44.4 1.30 11.5 3.6 IOICORP 4.26 4.31 1.2% Sell 26,014 0.79 11.7 16.5 36.5 25.9 1.6 2.3 4.80 -11.3 4.10 3.9 -4.3 PLANTATIONS KFIMA 1.66 1.89 13.9% Buy 467 0.69 12.1 13.3 13.8 12.5 5.4 5.4 1.76 -5.7 1.41 17.7 9.2 KLK 24.18 19.35 -20.0% Sell 25,751 0.52 68.3 79.6 35.4 30.4 1.4 1.6 25.78 -6.2 23.26 4.0 -2.2 SIMEPLT 4.53 5.28 16.6% Hold 31,187 na 18.0 21.8 25.2 20.8 3.3 3.3 5.58 -18.9 3.95 14.7 -4.8 TSH 0.93 1.01 8.6% Sell 1,284 0.45 4.2 4.5 22.0 20.5 1.5 1.5 1.25 -25.6 0.88 5.7 -6.1 UMCCA 5.18 5.88 13.5% Hold 1,086 0.53 -6.1 13.8 na 37.4 1.5 1.5 6.53 -20.7 5.12 1.2 -0.6 GLOMAC 0.36 0.38 5.6% Sell 281 0.62 0.7 2.2 52.8 16.7 1.4 2.8 0.51 -28.7 0.35 2.9 -7.7 HUAYANG 0.34 0.47 38.2% Buy 120 0.82 -3.5 3.9 na 8.8 0.0 0.0 0.50 -32.0 0.30 13.3 -1.4 IBRACO 0.67 0.70 4.5% Hold 333 0.45 7.4 9.1 9.1 7.4 4.1 4.1 0.75 -10.7 0.15 346.7 12.6 IOIPG 1.17 1.84 57.3% Buy 6,442 1.17 14.7 15.4 8.0 7.6 4.3 4.3 1.92 -39.1 1.16 0.9 -24.0 MAHSING 0.93 1.07 15.1% Buy 2,258 0.96 8.8 9.0 10.6 10.3 5.4 5.4 1.32 -29.5 0.89 4.5 1.6 SIMEPROP 0.96 1.12 16.7% Hold 6,529 na 5.5 7.7 17.4 12.5 2.1 3.1 1.47 -34.7 0.91 6.1 -3.5 SNTORIA 0.33 0.40 21.2% Sell 184 0.69 4.8 6.0 6.8 5.5 0.0 3.0 0.61 -45.9 0.30 10.0 -17.5 SPSETIA 2.01 2.24 11.4% Hold 8,105 1.22 10.8 15.0 18.6 13.4 3.7 4.5 3.30 -39.1 1.87 7.5 -13.7 SUNWAY 1.68 1.65 -1.8% Sell 8,207 0.91 12.5 13.7 13.5 12.3 4.5 4.5 1.72 -2.3 1.34 25.7 15.4 PROPERTY REIT CMMT 1.11 1.26 13.5% Buy 2,269 0.56 6.9 7.4 16.1 15.0 6.7 7.0 1.29 -14.0 0.99 12.1 9.9 SUNREIT 1.91 2.07 8.4% Hold 5,625 0.64 10.0 10.9 19.2 17.5 5.2 5.7 1.97 -3.0 1.61 18.6 10.4 POWER & UTILITIES MALAKOF 0.80 0.95 18.8% Buy 3,910 1.17 4.8 5.5 16.6 14.5 7.0 7.0 1.04 -23.1 0.75 7.4 0.0 PETDAG 24.58 27.60 12.3% Hold 24,419 0.76 105.7 108.2 23.3 22.7 3.6 3.7 28.48 -13.7 23.00 6.9 -7.2 PETGAS 16.38 17.90 9.3% Sell 32,412 0.92 97.3 98.3 16.8 16.7 4.5 4.5 20.00 -18.1 15.90 3.0 -14.7 TENAGA 11.54 13.20 14.4% Sell 65,627 1.08 97.7 98.5 11.8 11.7 4.7 4.8 16.00 -27.9 11.30 2.1 -15.1 YTLPOWR 0.83 0.75 -9.6% Sell 6,371 1.01 7.1 8.0 11.6 10.4 6.0 6.0 1.27 -34.6 0.74 12.2 0.0 TELECOMMUNICATIONS AXIATA 4.45 4.75 6.7% Buy 40,622 1.64 14.6 17.2 30.6 25.8 2.8 3.3 4.85 -8.2 3.20 39.1 13.2 DIGI 4.60 4.25 -7.6% Sell 35,765 1.07 19.7 20.6 23.3 22.3 4.1 4.3 5.04 -8.7 3.93 17.0 2.2 MAXIS 5.37 4.75 -11.5% Sell 41,975 0.88 20.9 21.1 25.7 25.5 3.7 3.7 5.89 -8.8 5.13 4.7 0.4 TM 2.70 2.15 -20.4% Sell 10,146 1.73 16.7 19.0 16.1 14.2 3.1 3.5 4.13 -34.6 2.11 28.0 1.5 ELSOFT 0.79 0.75 -5.1% Sell 526 0.90 4.4 5.4 17.8 14.8 4.0 4.8 1.50 -47.3 0.77 2.6 -27.5 INARI 1.39 1.75 25.9% Buy 4,415 0.81 6.3 8.0 21.9 17.3 3.7 4.6 2.56 -45.6 1.22 13.9 -7.3 MPI 8.80 8.85 0.6% Sell 1,750 0.93 63.0 86.7 14.0 10.1 3.1 3.3 13.20 -33.3 8.69 1.3 -11.6 -31.9 TECHNOLOGY Semiconductor & Electronics N2N 0.72 1.02 42.7% Buy 399 0.80 3.9 4.6 18.2 15.7 4.2 4.2 1.37 -47.8 0.70 2.1 SKPRES 1.28 1.65 28.9% Buy 1,688 1.28 8.1 10.7 15.9 12.0 3.2 4.3 1.63 -21.5 0.95 35.4 21.9 UNISEM 2.38 2.15 -9.7% Sell 1,730 0.66 11.2 15.3 21.3 15.5 3.2 3.2 3.30 -27.9 2.07 15.0 -27.4 TRANSPORTATION Airlines AIRASIA 2.45 3.42 39.6% Buy 8,188 1.43 20.3 28.5 12.1 8.6 28.6 4.9 3.29 -25.5 2.00 22.7 -17.5 AIRPORT 7.00 8.47 21.0% Buy 11,614 1.04 35.0 39.9 20.0 17.5 2.1 2.4 9.98 -29.9 6.60 6.1 -16.5 Freight & Tankers PTRANS 0.20 0.44 120.0% Buy 285 0.95 2.9 3.5 6.9 5.6 5.1 6.2 0.32 -36.5 0.20 2.6 -14.9 TNLOGIS 0.54 0.68 25.9% Hold 243 0.82 1.4 6.2 38.3 8.6 0.0 0.0 1.16 -53.4 0.53 2.9 -26.5 WPRTS 3.66 3.95 7.9% Hold 12,481 0.79 20.6 24.0 17.8 15.2 4.2 4.9 4.00 -8.5 3.28 11.6 1.1 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) % upside Recom Market Cap. (S$m) Beta EPS (cent) FY19 PER (X) FY20 FY19 FY20 Div Yield (%) FY19 FY20 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 25.20 29.50 17.1% Hold 64,426 1.25 232.8 256.5 10.8 9.8 4.8 4.8 29.3 -13.8 22.65 11.3 6.4 OCBC 11.01 13.20 19.9% Buy 46,812 1.22 115.2 125.6 9.6 8.8 3.9 3.9 13.1 -15.8 10.36 6.3 -2.2 UOB 24.64 31.70 28.7% Buy 41,104 1.25 255.8 279.1 9.6 8.8 4.9 4.9 29.4 -16.3 23.63 4.3 1.0 3.40 3.80 11.8% Hold 21,755 0.68 28.1 31.1 12.1 10.9 3.2 3.5 3.7 -7.9 2.97 14.5 9.0 PLANTATIONS WILMAR 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.
14. Technical View Monday , May 27, 2019 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Technical Outlook FBM KLCI: 1,598.32 (-7.04, -0.44%) Chartist : Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my US-China Trade Tensions to Bog Down Sentiment The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) drifter lower to end below the 1,600-mark in last week’s short three-day trading week as the US ban on Huawei’s products and access to US technology parts worsened the underlying sentiment. Oil & gas related stocks and semiconductor exporters led falls as global oil prices slumped below the USD70 per barrel level due to fallout from the intensifying US-China trade war. For the week, the FBM KLCI shed another 7.04 points, or 0.44 percent to 1,598.32, as gains on Public Bank (+10sen), IOI Corp (+5sen) and Top Glove (+6sen) were overshadowed by losses in Sime Darby (-15sen), Genting Berhad (-22sen), IHH Healthcare (-15sen), MAHB (23sen) and Petronas Gas (-24sen). Average daily traded volume and value shrank further to 2.02 billion shares and RM1.71 billion, respectively, compared to the 2.36 billion shares and RM1.88 billion average the previous week. The FBM KLCI pared early gains to settle in negative territory on Tuesday, as the local stock market reopened after the replacement market holiday for Wesak on Monday, in line with weaker regional markets amid concerns the US restrictions on Huawei products have worsened the US-China trade war sentiment. The KLCI closed 1.62 points down at 1,603.74, off an early high of 1,614.23 and low of 1,603.65, as losers bashed gainers 604 to 215 on weak turnover of 1.80bn shares worth RM1.46bn. While blue chips recovered from an early selloff on Thursday, following the market holiday due to Nuzul Al-Quran on Wednesday, oil & gas related stocks and semiconductor exporters dominated falls amid fears over further fallout from the intensifying US-China trade war. The KLCI fell 1.87 points to close at 1,601.87, off an early low of 1,589.79 and high of 1,605.13, as losers swarmed gainers 718 to 188 on higher turnover of 2.37bn shares worth RM2.11bn. Stocks extended losses ahead of the weekend, with sentiment continued to be adversely impacted by the simmering US-China trade tensions, given the ongoing tit-for-tat trade sanctions on the technology related sector which could last longer than expected. The index lost another 3.55 points to close the week at 1,598.32, after oscillating between early low of 1,592.97 and high of 1,606.85, as losers beat gainers 449 to 342 on slower trade totaling 1.89bn shares worth RM1.55bn. Trading range for the local blue-chip benchmark index last week nearly halved to 24.44 points, compared to the 45.4 points range the previous week. For the week, the FBM-EMAS Index shaved 112.13 points, or 0.99 percent to 11,187.92, while the FBM-Small Cap Index tumbled 474.68 points, or 3.69 percent to 12,403.58, as small cap stocks suffered further profit-taking corrections. The daily slow stochastics momentum indicator for the FBM KLCI has turned back down in neutral ground to negate the previous week’s buy signal due to last week’s failed rebound attempt (Chart 1), while the weekly indicator’s trigger line leveled in oversold territory. The 14-day Relative Strength Index (RSI) indicator also hooked back down, while the 14-week Page 1 of 3
15. 27-May-19 RSI deteriorated further given the sustained weak momentum . Chart 1 Trend indicators like the daily and weekly Moving Average Convergence Divergence (MACD) continued to extend lower, signaling a persisting downtrend. The –DI and +DI lines on the 14-day Directional Movement Index (DMI) trend indicator also expanded negatively with the ADX line rising to imply downtrend continuation. Chart 2 Page 2 of 3
16. 27-May-19 Conclusion Given the weak technical momentum and market undertone following last week ’s feeble rebound attempt and failure by the local benchmark index to sustain above the 1,600-point mark, more downside bias is anticipated towards the end of this month. With persisting uncertainties from global trade tensions bogging down sentiment as any sort of lasting deal between the world’s two largest economies not likely to be sealed in the near-term, stocks should drift lower on muted trade, pending more clarity on the trade war front. Crucial supports for the index stays at 1,579 and 1,550, which are the respective 123.6% and 138.2% Fibonacci Projection (FP) targets of the correction from last year’s 28 August peak of 1,826 to the 18 December through of 1,626. Overhead resistance remains at 1,626, then 1,647 followed by 1,657, and next at 1,674, matching the 76.4%FR level. Meantime, core banking stocks and defensive telcos such as CIMB, Maybank, Axiata and DiGi.com should attract bargain hunters on weakness, while oil & gas and construction lower liners like Dialog Group, Hibiscus Petroleum, Gadang and Sunway Construction should also attract buyers on domestic rotational plays. Chart 3 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 Monday, May 27, 2019, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
17. RESULTS UPDATE Monday , May 27, 2019 FBMKLCI: 1,598.32 Sector: Building Materials THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* CSC Steel Holdings Bhd TP: RM1.10 (+3.8%) Last Traded: RM1.06 Cautious Outlook Ahead Chan Mun Chun Sell Tel: +603-2167 9731 mcchan@ta.com.my Results Review CSC’s 1QFY19 net profit of RM4.6mn came in below expectations, accounting for 15.6% and 14.4% of our and street’s full-year estimates. The variance was mainly due to: i) higher-than-expected raw materials cost, and ii) lower average selling price for certain steel products. YoY, 1QFY19 net profit fell 56.5% to RM4.6mn as revenue was 4.8% lower at RM331.2mn. The plunge in earnings was mainly attributed to margin compression as a result of higher raw materials cost and lower average selling prices. Meanwhile, the drop in revenue was mainly due to lower sales volume for galvanised steel products and lower average selling price for some of the key products. www.taonline.com.my Share Information Bloomberg Code CSCS MK Bursa CSCSTEL Stock Code 5094 Listing Main Market 380.0 Share Cap (mn) 402.8 Market Cap (RMmn) 1.4/0.975 52-wk Hi/Lo (RM) 171.1 12-mth Avg Daily Vol ('000 shrs) 37.9 Estimated Free Float (%) 1.1 Beta Major Shareholders (%) China Steel Asia PAC- 46.3 Lembaga Tambung Haji- 7.39 Forecast Revision QoQ, the group posted a net profit of RM4.6mn in 1QFY19 as compared with a net loss of RM2.1mn a quarter ago despite the revenue dropping by 6.8% to RM331.2mn. The earnings recovery was mainly contributed by lower raw materials cost amid soft market sentiment due to uncertainties arising from China-US trade war. Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating Impact Following the weaker-than-expected results, adjustments are made to reflect lower average selling price for some of CSC’s key products. Consequently, earnings forecasts for FY19/FY20/FY21 are cut by 30.1%/29.8%/23.8% respectively. Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) FY19 FY20 (30.1) (29.8) 20.7 25.0 32.1 37.5 64.6 66.8 Sell (Maintained) Financial Indicators FY19 Net Cash 3.8 28.0 2.2 2.1 0.5 FY20 Net Cash (0.3) (418.4) 2.7 2.2 0.5 % of FY19 15.6 14.4 Below Below CSC (4.5) (1.9) (6.2) (23.7) FBM KLCI (2.4) (6.7) (5.1) (11.1) Scorecard Outlook The local cold rolled coil players are awaiting further good news from the Ministry of Trade of Malaysia, expected in 2H19, on potentially more stringent measures against flat steel imports from other foreign countries. If this happens, it would serve as a positive catalyst for the stock. Valuation We switch our valuation method to price to book ratio as we believe it is more reflective to the company’s intrinsic value. The group has been in net cash position since 2006. As at 1QFY19, the group does not have any borrowings with net cash per share of 47sen. We value the stock at CY20 P/B ratio of 0.5x, -1SD from 1-year historical average, and arrive a revised target price of RM1.10, from RM0.68. Maintain Sell call on stock. vs. TA vs. Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 3
18. 27-May-19 Exhibit 1 : Price of Hot Rolled Sheet and Cold Rolled Sheet in China Source: Bloomberg, TA Securities Exhibit 2: Price of Galvanised Sheet in China Source: Bloomberg, TA Securities Table 1: Earnings Summary Table 2: 1QFY19 Results Analysis FYE Dec (RMmn) Revenue Profit before depreciation Finance costs PBT Core PBT Income tax expense Net profit Core profit Reported EPS (sen) Core EPS (sen) Dividend (sen) Margin (%): - Core PBT - Core PAT - Effective tax rate 1QFY18 4QFY18 1QFY19 347.7 355.5 331.2 20.7 2.9 12.0 0.0 0.0 (0.0) 13.6 (4.6) 5.8 13.6 (4.6) 5.8 (3.0) 2.5 (1.2) 10.6 (2.1) 4.6 10.6 (2.1) 4.6 2.9 2.9 0.0 3.9 3.0 22.0 (0.6) (0.6) 4.0 (1.3) (0.6) 54.3 1.2 1.2 0.0 1.8 1.4 21.0 QoQ (%) YoY (%) (6.8) (4.8) 316.5 (42.1) na na <(100.0) (57.1) <(100.0) (57.1) <(100.0) (59.1) <(100.0) (56.5) <(100.0) (56.5) <(100.0) <(100.0) (100.0) (56.5) (56.5) na % pts 3.0 2.0 (33.3) % pts (2.1) (1.7) (1.0) 3MFY18 3MFY19 YoY (%) 347.7 331.2 (4.8) 20.7 12.0 (42.1) 0.0 (0.0) na 13.6 5.8 (57.1) 13.6 5.8 (57.1) (3.0) (1.2) (59.1) 10.6 4.6 (56.5) 10.6 4.6 (56.5) 2.9 2.9 0.0 3.9 3.0 22.0 1.2 1.2 0.0 (56.5) (56.5) na 1.8 1.4 21.0 % pts (2.1) (1.7) (1.0) Page 2 of 3
19. 27-May-19 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) (THIS PAGE IS INTENTIONALLY LEFT BLAN 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 Monday, May 27, 2019, the analyst, Chan Mun Chun, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
20. RESULTS UPDATE Monday , May 27, 2019 FBMKLCI: 1,598.32 Sector: Building Materials THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Engtex Group Berhad TP: RM0.80 (+2.6%) Last Traded: RM0.78 Outlook Remains Challenging Chan Mun Chun Tel: +603-2167 9731 Sell mcchan@ta.com.my Results Review Excluding a net exceptional gain amounting to RM0.2mn, ENGTEX reported 1QFY19 core net loss of RM0.1mn. This was below our and consensus’s full-year profit forecast of RM23.2mn and RM30.8mn respectively. The variance was mainly due to: i) soft market demand as a result of continued weak sentiment in the building materials industry, and ii) higher-than-expected procurement and operating costs for certain metal related trading products and manufactured steel products. YoY, the group posted core net loss of RM0.1mn in 1QFY19 as compared with core profit of RM9.8mn while revenue dropped 8.0% to RM274.2mn from RM298.2mn. The weak results were mainly due to lower revenue contribution from all the core businesses as well as higher procurement and operating costs in both manufacturing and trading divisions. Additionally, the market demand for mild steel concrete-lined pipes was tepid. QoQ, the group recorded core net loss of RM0.1mn in 1QFY19 versus a core net loss of RM5.2mn a quarter ago due to inventory written down of RM7.4mn recognised in 4QFY18. Meanwhile, the revenue fell 11.1% to RM274.2mn due to persisting weak market sentiment. The group’s net gearing position eased to 0.54x from 0.69x a quarter ago as the group tightened working capital requirement and reduced procurement of raw materials and trading inventories, which resulted in its inventory declining from RM413.9mn a quarter ago to RM342.7mn. Impact Following the weaker-than-expected results, adjustments are made to reflect lower revenue contribution from both wholesale and distribution, and manufacturing divisions. Consequently, earnings forecasts for FY19/FY20/FY21 are reduced by 46.6%/42.7%/38.4% respectively. Outlook The outlook for the building materials industry remains challenging as the property sector stays sluggish. 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 (%) ENGT MK ENGTEX 5056 Main Market 443.3 345.8 1.23/0.77 634.1 47.3 1.0 Ng Hook - 21.35 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY19 FY20 (46.6) (42.7) 12.4 19.4 30.8 36.2 40.4 53.5 Sell (Maintained) Financial Indicators Net Debt / Equity (%) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) FY19 54.5 16.4 4.8 0.9 1.6 0.5 FY20 53.2 (6.8) (11.4) 1.4 1.6 0.5 % of FY19 < -100 < -100 Below Below ENGTEX (10.3) (5.5) (11.4) (31.6) FBM KLCI (2.4) (6.7) (5.1) (11.1) Scorecard vs. TA vs. Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBMKLCI The water pipe manufacturers in Peninsula Malaysia are awaiting the rollout out of long outstanding major water pipe replacement programme, which would serve as a re-rating catalyst to the water pipe manufacturing industry. The property division is expected to remain lacklustre in tandem with weak sentiment in the property market. As such, the group has no intention to launch new property project but to focus on clearing the unsold completed units in Kepong and Selayang. Source: Bloomberg Valuation Page 1 of 3
21. 27-May-19 Given the persisting challenging outlook for the property development and hospitality divisions , in which we forecast minor losses in FY19 to FY21, we switch our valuation method to price to book ratio. We value the stock at CY20 P/B ratio of 0.5x, which is -1SD from 1-year historical average, and arrive a revised target price of RM0.80, from RM0.62. Maintain Sell call on stock. Table 1: Earnings Summary FYE Dec (RMmn) Revenue Gross profit EBITDA EBITDA margin EBIT PBT Core PBT PAT Core profit Core EPS PER Gross dividend Dividend yield ROE (%) (sen) (x) (sen) (%) (%) 2017 2018 2019F 2020F 2021F 1,107.9 184.1 125.8 11.4 103.8 82.7 72.8 54.7 44.9 12.4 6.3 1.5 1.9 7.5 1,208.0 144.0 74.8 6.2 50.1 23.0 23.5 12.9 13.7 3.1 25.0 0.8 1.0 2.0 1,053.5 141.4 63.6 6.0 40.5 20.0 20.0 14.8 12.4 2.8 27.6 0.8 1.0 1.8 1,130.3 153.8 70.6 6.2 48.4 29.4 29.4 21.7 19.4 4.4 17.7 0.8 1.0 2.8 1,217.5 166.0 73.4 6.0 52.2 34.5 34.5 25.5 23.1 5.3 14.8 0.8 1.0 3.2 Page 2 of 3
22. 27-May-19 Table 2 : 1QFY19 Results Analysis FYE Dec (RMmn) 1QFY18 Revenue 298.2 Wholesale and distribution 162.3 Manufacturing 127.1 Property development 5.8 Hospitality 2.2 Cost of sales (253.9) Other operating income 1.3 Operating expenses (25.1) EBITDA Wholesale and distribution 13.5 Manufacturing 14.5 Property development (1.8) Hospitality (0.2) Finance costs (7.1) PBT 13.5 Core PBT 13.4 Income tax expense (3.5) Net profit 9.9 Core profit 9.8 Reported EPS (sen) Core EPS (sen) Dividend (sen) EBITDA Margin (%): Wholesale and distribution Manufacturing Property development Hospitality Margin (%): - Core PBT - Core PAT - Effective tax rate 4QFY18 308.5 176.9 127.7 2.0 1.9 (283.4) 1.4 (23.6) 2.3 2.2 0.0 1QFY19 QoQ (%) 274.2 (11.1) 162.1 (8.4) 107.8 (15.6) 2.4 17.8 2.1 6.2 (244.7) (13.7) 1.5 9.0 (23.5) (0.3) YoY (%) (8.0) (0.1) (15.2) (59.1) (7.1) (3.6) 15.1 (6.2) 3MFY18 298.2 162.3 127.1 5.8 2.2 (253.9) 1.3 (25.1) 3MFY19 YoY (%) 274.2 (8.0) 162.1 (0.1) 107.8 (15.2) 2.4 (59.1) 2.1 (7.1) (244.7) (3.6) 1.5 15.1 (23.5) (6.2) 9.2 (0.5) 1.0 (0.3) (8.2) (5.2) (3.4) (2.0) (7.0) (5.2) 10.9 3.8 (0.2) (0.6) (5.7) 2.0 1.8 (1.8) 0.1 (0.1) 17.8 <(100.0) <(100.0) 127.5 (30.9) <(100.0) <(100.0) (6.6) <(100.0) (99.0) (19.6) (73.8) (86.1) 210.8 (20.6) (85.4) (86.6) (47.2) (98.8) <(100.0) 13.5 14.5 (1.8) (0.2) (7.1) 13.5 13.4 (3.5) 9.9 9.8 10.9 (19.6) 3.8 (73.8) (0.2) (86.1) (0.6) 210.8 (5.7) (20.6) 2.0 (85.4) 1.8 (86.6) (1.8) (47.2) 0.1 (98.8) (0.1) <(100.0) (1.6) (1.2) 0.8 0.0 (0.0) 0.0 <(100.0) (99.0) (100.0) (98.8) <(100.0) na 2.3 2.2 0.0 0.0 (98.8) (0.0) <(100.0) 0.0 na % pts (1.6) (7.9) 20.1 (20.5) 8.3 11.4 (30.5) (8.8) 6.7 3.5 (10.4) (29.3) % pts (1.6) (7.9) 20.1 (20.5) (3.8) (3.3) 67.3 4.5 3.3 25.8 0.7 0.0 93.1 (3.8) (3.3) 67.3 8.3 11.4 (30.5) (8.8) 5.2 (0.4) 51.2 (13.7) 6.7 3.5 (10.4) (29.3) % pts 1.5 3.9 (61.6) (15.6) 4.5 3.3 25.8 (1.1) (1.7) (37.7) 0.7 (0.0) 93.1 1.7 1.7 130.8 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 Monday, May 27, 2019, the analyst, Chan Mun Chun, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
23. RESULTS UPDATE www .bursamids.com Monday, May 27, 2019 Sector: Property THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM0.70 (+4.5%) Ibraco Bhd Last Traded: RM0.67 Traditionally Slow Quarter Thiam Chiann Wen Tel: +603-2167 9615 Hold cwthiam@ta.com.my Review Ibraco reported 1Q19 net profit of RM3.3mn, which came in at 9% and 10% of ours and consensus full year forecasts respectively. However, we deem the results within expectations as 2H19 should see: 1) stronger progress billing from its on-going projects; and 2) normalisation of construction profit recognition. Note that 1Q18 net profit only accounted for 8% of the group’s 2018 full year net profit. Ibraco’s 1Q19 net profit surged 42% YoY to RM3.3mn, on the back of solid revenue growth of 83% YoY. We attribute the stronger results to: 1) higher inventory sale, 2) stronger progress billing from property division, and 3) better margin (EBIT margin +2.1pts YoY to 11.9%) driven by higher other income and lower administrative expenses. Sequentially, the group’s 1Q19 revenue and net profit plunged 29% and 77% to RM59.4mn and RM3.3mn respectively. According to the announcement, 4Q18 results were boosted by the sales of completed residential houses at Tabuan Tranquility Phase 2. In addition, the construction division slipped into losses in 1Q19, as cost incurred was higher than the certification of work. The timing difference in recognition is expected to normalise in the coming quarters. Impact Maintain earnings forecasts. Outlook Ibraco recorded RM49.8mn new sales in 1Q19. This came in within our FY19 sales assumptions of RM240mn and tracked management’s sales target of RM230mn. Key contributor to 1Q19 sales is Northbank in Kuching which saw half of the 23 commercial shoplots launched in March taken up. (GDV: RM32mn). www.taonline.com.my Stock Return Information KLCI 1,598.32 Expected Share Price Return (%) 4.5 Expected Dividend Return (%) 4.1 Expected Total Return (%) 8.6 Share Information Bloomberg Code IBRA MK Stock Code 5084 Listing Main Market Issued Share (mn) 496.4 Market Cap (RMmn) 332.6 52-wk Hi/Lo (RM) 0.75/0.15 Estimated Free Float (%) 12.3 Beta (x) 0.5 3-Month Average Volume ('000) 31.5 Top 3 Shareholders (%) Chew Chiaw Han 26.3 Sharifah Deborah 20.0 Ng Cheng Chuan 17.5 Share Performance (%) Price Change IBRA FBM KLCI 1 mth 0.0 (2.4) 3 mth (6.3) (6.7) 12 mth 31.4 (11.1) FY19 FY20 73.9 68.8 Financial Info Debt to Equity Ratio ROA (%) 4.7 5.3 ROE (%) 9.8 11.2 NTA/Share (RM) 0.8 0.8 Price/NTA (x) 0.9 0.8 Scorecard % of FY On the construction front, the group is actively tendering for more building and infrastructure projects offered by the public and/or private sectors. Recall, Ibraco had secured a RM302.6mn contract to complete the construction of a new airport in Mukah, Sarawak in 2017. We understand that the airport is now 31% completed. vs. TA vs. Consensus 9.0 Within 10.0 Within (12-Mth) Share Price relative to the FBMKLCI Future earnings is expected to be anchored by unbilled sales of RM236.8mn and outstanding construction orderbook of RM195.2mn. Valuation As we roll forward our valuation base year to CY20, we arrive at a target price of RM0.70 (previous RM0.64). Our target price is based average blended CY20 PE/PB ratio of 9x/0.7x. With a potential total return of 8.6%, we upgrade Ibraco to Hold from Sell previously. Source: Bloomberg Page 1 of 2
24. 27-May-19 Table 1 : Earnings Summary (RMmn) FYE Dec R evenue E B ITDA E B ITDA ma rg in (% ) Adj P B T R eported net profit Core profit Core E P S (s en) Core E P S g rowth (% ) P E R (x) GDP S (s en) Div yield (% ) Core R OE (% ) 2017 126.6 24.0 19.0 19.0 14.0 14.0 2.8 (48.1) 23.7 2.8 4.1 4.2 2018 239.3 47.8 20.0 41.8 30.1 30.1 6.1 114.7 11.0 2.8 4.1 8.7 2019F 345.3 57.5 16.7 49.7 36.7 36.7 7.4 21.6 9.1 2.8 4.1 9.8 2020F 458.2 68.7 15.0 60.6 45.2 45.2 9.1 23.2 7.4 2.8 4.1 11.2 2021F 468.3 74.3 15.9 66.0 49.5 49.5 10.0 9.6 6.7 3.0 4.5 11.4 Table 2: 1QFY19 Results Analysis (RMmn) YE 31 Dec Revenue Gross Profit 1Q18 32.5 8.9 4Q18 83.9 28.2 1Q19 59.4 11.8 QoQ (%) (29.2) (58.2) YoY (%) 82.8 32.7 EBIT Net Int Inc/ (exp) Pretax Profit Taxation MI Reported Net Profit Core Net Profit Core EPS (sen) GDPS (sen) 3.2 (0.7) 2.5 (0.8) (0.1) 2.3 2.3 0.5 0.0 19.7 (1.3) 18.3 (5.1) 0.9 14.1 14.1 2.8 0.0 7.1 (1.6) 5.5 (1.6) (0.4) 3.3 3.3 0.7 0.0 Gross margin EBIT Margin (%) Pretax Margin (%) Net Margin (%) Effective Tax Rate (%) 27.3 9.9 7.6 7.2 (31.5) 33.6 23.4 21.8 16.8 (27.9) 19.8 11.9 9.3 5.5 (28.1) (64.0) 15.5 (69.8) (69.6) (141.5) (76.6) (76.6) (76.8) 0.0 ppt (13.8) (11.5) (12.5) (11.3) (0.2) 120.9 108.0 124.8 100.0 172.1 41.7 41.7 40.4 0.0 ppt (7.5) 2.1 1.7 (1.6) 3.5 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 Monday, May 27, 2019, the analyst, (Thiam Chiann Wen), who prepared this report, has interest in the following securities covered in this report: (a) nil This report has been prepared by TA SECURITIES HOLDINGS BERHAD for purposes of Mid and Small Cap Research Scheme ("MidS") administered by Bursa Malaysia Berhad and will be compensated to undertake the scheme. TA SECURITIES HOLDINGS BERHAD has produced this report independent of any influence from the MidS or the subject company. For more information about MidS and other research reports, please visit Bursa Malaysia’s website at: www.bursamids.com Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 2
25. COMPANY UPDATE Monday , May 27, 2019 FBMKLCI: 1,598.32 Sector: Technology THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM1.75 (+25.9%) Inari Amertron Berhad Last Traded: RM1.39 Efforts on Driving Growth Are Intact Wilson Loo, CFA Tel: +603-2167 9606 BUY wilsonloo@ta.com.my Inari held a briefing following the release of its 3QFY19 results. Notwithstanding the challenging operating environment, we note of continuous efforts by management to drive growth with: 1) expansion of the core radio frequency segment with additional testers consigned by a major customer, 2) traction with expansion of chip on carrier and mixed signal testing business, 3) success of new products (3D facial recognition and health sensor), and 4) completion of new plant P34 in Batu Kawan, Penang. In all, we maintain our forecasts and reiterate our Buy recommendation on Inari with a TP of RM1.75/share based on an unchanged PE of 19.0x, pegged to the stock’s 5-year mean. 9MFY19 Performance Dragged by Several Factors To recap, Inari’s 9MFY19 revenue and core net profit declined 17.9% YoY and 22.1% YoY to RM882.2mn and RM153.2mn. Management however alluded that the revenue decline would have been softer at 7.4% YoY if excluding contributions from: 1) iris scanning (loadings on a downtrend as product approach end of life) and 2) Ceedtec (absence of contributions after assets were disposed in FY18). Meanwhile, revenue from the group’s core radio frequency (RF) segment (36% of group revenue) fell 10% YoY as weaker demand for the flagship models of major smartphone brands affected loadings, albeit the impact was cushioned by cushioned by higher RF content per device. Continuous Efforts to Drive Growth, Additional RF Testers Consigned Notwithstanding the challenging operating environment, we note of continuous efforts by management to drive growth. Of note, the group’s major customer has continued to consign additional RF testers in the lead up to the upcoming flagship smartphone cycle. We expect this to also benefit the group down the road alongside the greater commercialisation of 5G which would see higher RF content in 5G smartphones. Meanwhile, there remains traction with the group’s expansion of its chip on carrier business with targets to expand by 30% as well as the mixed signal testing business which has been accommodating new programs. As for new products (i.e., 2D & 3D facial recognition, health sensor, and MiniLED), we note that progress has been mixed. While there was poor visibility from 2D facial recognition and stalled loadings for MiniLED, their contributions are smallish, but management is hopeful for improvements down the road. P34 Ready for Occupancy, Prospects from A Major Customer Intact Elsewhere, P34, the group’s new plant in Batu Kawan, Penang is ready for occupancy having recently obtained its Certificate of Completion and Compliance in May 2019. Recall that P34 comprises of 3 factory blocks and with its floor space of 680k sq ft enlarges the group’s overall capacity by ~68%. Management alluded that part of the facility would accommodate the expansion of the RF segment once P13B reaches optimal utilisation which is expected by December 2019. Besides, management also reaffirmed that it is in discussion www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) INRI MK 0166 Main Market 3,175.9 4,414.6 2.56/1.22 11,407.5 54.5 0.8 Insas Berhad - 17.0 Kumpulan Wang Persaraan - 13.6 EPF - 7.4 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY19 FY20 201.5 254.4 204.1 258.9 98.8 98.3 Buy (Maintained) Financial Indicators Net gearing (x) CFPS (sen) P/CFPS (x) ROAA (%) ROAE (%) NTA/Share (RM) Price/ NTA (x) Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth FY19 Net cash 10.4 13.4 14.5 18.3 0.3 4.0 FY20 Net cash 10.0 13.9 17.1 22.1 0.4 3.8 INRI (21.5) (11.5) (13.1) (37.6) FBM KLCI (2.4) (6.7) (5.1) (11.1) (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 4
26. 27-May-19 with potential customers and there remains prospects of securing outsourcing jobs from a major customer which has been restructuring its operations . Current Market Conditions Conducive for M&A but Right Fit Prioritised Backed by the group’s robust net cash position of RM427.5mn or 13.4sen/share as at 3QFY19, management alluded that it has been actively assessing merger and acquisition opportunities. While management also acknowledged that value has emerged alongside the recent drop in sector valuations, the importance of finding the right fit was stressed. We note that the group is eyeing targets with comparable scale (value > RM1bn) among others, with expertise in wafer level packaging technologies to complement its back-end business. Valuation & Recommendation In all, we maintain our forecasts and reiterate our Buy recommendation on Inari with TP of RM1.75/share based on an unchanged PE of 19.0x, pegged to the stock’s 5-year mean. We like the group for its growth prospects, especially with expectations for it to benefit from the greater commercialisation of 5G, above industry average margins and robust balance sheet. Key downside risks include heightened global trade tensions, strengthening of the ringgit against the USD, and surge in commodity prices. Figure 1: Forward PE Figure 2: Forward PB x x 40.0 7.0 6.5 35.0 6.0 30.0 +1sd: 5.4x 5.5 +1sd: 26.3x 25.0 5.0 Mean: 19.4x 20.0 Mean: 4.3x 4.5 4.0 15.0 3.5 -1sd: 12.5x 10.0 3.0 -1sd: 3.3x 2.5 5.0 Mar-19 Dec-18 Jun-18 Sep-18 Mar-18 Dec-17 Jun-17 Sep-17 Mar-17 Dec-16 Jun-16 Sep-16 Mar-16 Dec-15 Jun-15 Sep-15 Mar-15 Dec-14 Jun-14 Mar-19 Dec-18 Jun-18 Sep-18 Mar-18 Dec-17 Jun-17 Sep-17 Mar-17 Dec-16 Jun-16 Sep-16 Mar-16 Dec-15 Jun-15 Sep-15 Mar-15 Dec-14 Jun-14 Sep-14 Source: Bloomberg, TA Securities Sep-14 2.0 0.0 Source: Bloomberg, TA Securities [ TH E RE M A ININ G OF T H IS P A GE IS IN TE N TI O NA L L Y L E F T BL AN K] Page 2 of 4
27. 27-May-19 Earnings Summary P &L FYE Jun 30 (RMmn) Revenue EBITDA Depreciation & amortisation Net finance cost EI PBT Taxation MI Net profit Core net profit EPS (sen) DPS (sen) FY17 1,176.7 266.2 (66.4) 3.6 37.6 241.0 (12.4) (0.9) 227.8 190.2 6.0 9.8 FY18 1,376.0 347.7 (83.8) 7.9 23.7 295.5 (35.3) (10.9) 249.3 225.5 7.1 6.8 FY19F 1,156.4 305.9 (95.7) 8.9 0.0 219.1 (17.5) 0.0 201.5 201.5 6.3 5.1 FY20F 1,452.2 377.4 (109.4) 8.6 0.0 276.5 (22.1) 0.0 254.4 254.4 8.0 6.4 FY21F 1,910.3 474.8 (120.4) 7.7 0.0 362.1 (29.0) 0.0 333.1 333.1 10.4 8.4 FY17 FY18 FY19F FY20F FY21F 23.3 7.1 5.1 19.6 4.9 4.2 22.0 3.6 4.0 17.4 4.6 3.8 13.3 6.0 3.6 21.7 15.8 22.6 20.5 21.2 16.9 25.3 21.5 18.3 14.5 26.4 18.9 22.1 17.1 26.0 19.0 27.3 20.4 24.9 19.0 Liquidity ratios Current ratio 2.9 3.9 3.5 3.1 2.7 Quick ratio 2.3 3.2 2.8 2.3 1.9 Ratios FYE Jun 30 Valuations PER Dividend yield PBV Profitability ratios ROAE ROAA EBITDA margin PBT margin Leverage ratios Total liabilities/equity Net debt/equity Int. coverage ratio Growth ratios Sales Pretax Earnings Total assets 0.4 0.2 0.2 0.3 0.3 Nt. Cash Nt. Cash Nt. Cash Nt. Cash Nt. Cash nm nm nm nm nm 12.8 57.4 33.0 37.4 16.9 22.6 18.6 10.7 (16.0) (25.9) (10.6) 4.2 25.6 26.2 26.2 7.2 31.5 30.9 30.9 9.6 Balance Sheet FYE Jun 30 (RMmn) Fixed assets Goodwill Others LT assets FY17 330.6 9.2 6.1 346.0 FY18 400.4 2.1 5.1 407.6 FY19F 469.7 2.1 5.1 476.9 FY20F 525.2 2.1 5.1 532.5 Inventories Trade receivables Cash Others Current assets 169.0 232.1 196.5 259.7 857.4 160.5 233.0 297.5 233.2 924.1 185.0 195.5 297.8 233.2 911.4 232.3 245.4 244.5 233.2 955.4 305.6 322.9 191.4 233.2 1,053.1 1,203.4 1,331.8 1,388.4 1,487.9 1,630.1 230.7 16.1 51.7 298.5 169.2 9.0 61.5 239.7 189.1 12.0 61.5 262.6 240.7 10.2 61.5 312.4 318.9 8.7 61.5 389.0 24.8 6.7 31.5 14.5 6.7 21.2 8.0 6.7 14.7 6.8 6.7 13.5 5.8 6.7 12.5 607.8 454.4 1,062.1 8.7 607.8 494.7 1,102.4 8.7 607.8 545.5 1,153.3 8.7 607.8 612.2 1,219.9 8.7 1,331.8 1,388.4 1,487.9 1,630.1 Total assets Trade payables ST borrowings Others Current liabilities LT borrowings Others LT liabilities Share capital Reserves Shareholders' funds MI Total liabilities and equity Cash Flow FYE Jun 30 (RMmn) PBT Depreciation & amortisation Net interest Other non-cash Changes in WC Tax paid Net interest Others Operational cash flow 458.7 416.9 875.5 (2.2) 1,203.4 FY21F 569.8 2.1 5.1 577.1 FY17 241.0 66.4 (3.7) (6.3) 33.4 (9.4) 3.7 (0.3) 324.8 FY18 295.5 83.8 (7.9) 48.0 (96.6) (31.0) 7.9 1.2 300.9 FY19F 219.1 95.7 (8.9) 0.0 32.9 (17.5) 8.9 0.0 330.1 FY20F 276.5 109.4 (8.6) 0.0 (45.7) (22.1) 8.6 0.0 318.2 FY21F 362.1 120.4 (7.7) 0.0 (72.6) (29.0) 7.7 0.0 380.9 Capex Others Investing cash flow (119.6) 0.5 (119.1) (163.5) 1.6 (162.0) (165.0) 0.0 (165.0) (165.0) 0.0 (165.0) (165.0) 0.0 (165.0) Net share issue Dividend paid Net change in debts Others Financial cash flow 73.2 (95.3) 7.2 -87.6 (102.4) 129.3 (199.4) (17.4) 54.6 (32.9) 0.0 (161.2) (3.5) 0.0 (164.8) 0.0 (203.5) (3.0) 0.0 (206.5) 0.0 (266.5) (2.6) 0.0 (269.0) 103.2 91.0 2.3 196.5 106.0 196.5 (5.0) 297.5 0.3 297.5 0.0 297.8 (53.3) 297.8 0.0 244.5 (53.1) 244.5 0.0 191.4 Net cash flow Opening cash flow Forex Closing cash flow Page 3 of 4
28. 27-May-19 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Monday, May 27, 2019, the analyst, Wilson Loo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
29. IPO Friday , May 24, 2019 FBMKLCI: 1,601.87 Sector: Building Materials THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM0.585 (+4.5%) HPMT Holdings Berhad Main Market Listing Cutting Tools Expert Chan Mun Chun NOT RATED Tel: +603-2167 9731 mcchan@ta.com.my Background HPMT Holdings Bhd (HPMT) is primarily involved in manufacturing and distribution of cutting tools, trading of third-party cutting tools, supporting equipment and accessories for metalworking as well as coating services. IPO Statistic The IPO entails a public issue of 75.6mn ordinary shares, and an offer for sale of 41.1mn shares at an IPO price of RM0.56/share. Public issue: • 16.4mn new shares for application by the Malaysian public; • 8.3mn new shares for application by eligible persons; • 59.0mn new shares by way of private placement to selected investors; and • 32.9mn new shares by way of private placement to identified Bumiputera investors approved by MITI. Main Competitive Advantages 1. Proven track record in cutting tools industry; 2. Extensive sales and distribution network; and 3. Strong in-house research and development capabilities. Valuation At IPO price of RM0.56/share, HPMT is priced at a trailing PER of 14.6x, based on FY18 earnings. We value the company at 13x CY20 EPS, arriving at a fair value of RM0.585/share. Earnings Summary 1 8 www.taonline.com.my Share Information Listing 328.5 Market Cap @ RM0.56 (RM mn) 184.0 Issue price (RM) 0.56 Oversubscription rate N/A Estimated free float (%) Event Tentative Date Opening of the IPO 17-May-19 Closing of the IPO 29-May-19 Balloting of Applications 31-May-19 Allotment of Shares 10-Jun-19 Listing 12-Jun-19 Ratio & Analysis NTA per share (post IPO) (sen) 34.0 Price to NTA (x) 1.6 Proforma Gearing (x) 0.2 RM(mn) % 34.0 80.3 Working capital 2.9 6.9 Estimated listing expenses 5.4 12.8 42.3 100.0 TOTAL Page 1 of 7 12-Jun-19 Tentative Listing Dates Capex Business Overview Established in 1978, HPMT is primarily involved in manufacturing and distribution of cutting tools, trading of third-party cutting tools, supporting equipment and accessories for metalworking as well as coating services. The manufacturing of cutting tools, which historically accounted for more than 90% 35.5 Tentative listing date Utilisation of Proceeds Note: *based on enlarged share base of 328.5mn, ^ based on IPO price of RM0.56/share Main Market Enlarged Share Capital (mn)
30. 24-May-19 of the total group revenue , can be broadly classified under 2 main categories, i.e. standard tools and special tools. The group currently has a portfolio of about 17,000 standard cutting tools, which are mainly used for general applications that involve in milling and drilling across a wide spectrum of industries such as automotive, aerospace, medical, and semi-conductor. On the other hand, the group also manufactures special tools that specifically meet the customers’ requirements for special specifications and applications. Besides, the group is also involved in trading business that mainly sells different international brands of cutting tools, supporting equipment and accessories. In addition, the group provides coating services that involve application of a thin layer of material onto the surface of the cutting tool or any other objects in order to improve the durability. The group’s customer base mainly comprises distributors and end-use customers. The group currently has 1 main factory in Shah Alam, Malaysia, and a total of 5 branch offices in Asia and Europe. Historically, the group generated more than 80% of revenue from export market. Exhibit 1: Geographical Revenue Breakdown Source: Company, TA Securities Exhibit 2: Revenue Breakdown by Segments Source: Company, TA Securities Page 2 of 7
31. 24-May-19 Exhibit 3 : Manufacturing Plant Capacity with Utilisation Rate Source: Company, TA Securities Exhibit 4: IPO Structure Public Issue No. of Shares Malaysian public Eligible persons Placement to selected investors 16.4mn 8.3mn 59.0mn % of Enlarged Share Capital 5.0 2.5 18.0 MITI-approved bumiputera investors 32.9mn 10.0 Source: Company, TA Securities Utilisation of Proceeds The estimated gross proceeds of RM42.3mn raised are expected to be utilised for the followings: Exhibit 5: Utilisation of Proceeds Source: Company, TA Securities Competitive Advantages 1) Proven Track Record in Cutting Tools Industry Started as a trading arm back in 1978, the group subsequently pursued an upward integration by venturing into manufacturing of cutting tools in 2000. As such, the group has already been in the business of trading of cutting tools and related products for almost 40 years. In addition, the management team is led by the Executive Chairman and the founder of HPML, Mr. Khoo Yee Her, who has almost 40 years of experience in the metalworking industry. Over the Page 3 of 7
32. 24-May-19 years , the management has successfully built up a loyal customer base. Moving forward, the group will continue to strengthen its market position via its strong track record couple with in-house expertise. 2) Extensive Sales and Distribution Network Exhibit 6: Sales and Distribution Market Source: Company The group has strong presence in the international market, especially in Asia and Europe regions. Currently, the group has a global network of distributors in more than 30 countries in which Europe is the largest export market for the group with about 50.7% of the export revenue in FY18. By having business exposures in diversified geographical markets, it allows the group to be less reliant on particular single market for revenue generation. 3) Strong In-house Research and Development Capabilities The group has an in-house R&D unit that allows the group to undertake R&D activities to develop and enhance new cutting tools in order to fulfill the diverse needs from the pool of customers. In addition, the R&D team provides consultancy services to help the customers to troubleshoot the machining and tool problems. The R&D team consists of 9 individuals that led by Mr. Wong Chew Kong, who has been with the group for 19 years. Key Risks Relating to Business and Industry 1) Availability and Price of Raw Materials The raw materials that are being used for manufacturing of cutting tools are tungsten carbide rods. Any unfavourable fluctuations in the price or shortage of raw materials in the global market will lead to an increase in production cost. 2) Foreign Exchange Risk Given the group mainly imports the raw materials from foreign markets, and about 80% of sales are export driven, the fluctuation of foreign currency especially USD against MYR and Euro against MYR could significantly affect the bottom line of the group. 3) Dependency on Management Team The success and future growth of the business are highly dependent on the experience, expertise, commitment and continued service of the Executive Chairman, Managing Director, and Key Senior Management which include the Director of Technical. Therefore, any departure of key persons without suitable and timely replacement may adversely affect the group’s performance. Page 4 of 7
33. 24-May-19 Financial Highlights Exhibit 7 : Financial Performance Source: Company, TA Securities The revenue for FY16 increased 9.1% YoY to RM75.2mn from RM68.9mn due to higher sales volume from Malaysia, Asian, and European markets. Meanwhile, core profit for the same period jumped 10.7% YoY to RM12.6mn, from RM11.4mn a year ago thanks to higher gross profit recorded from manufacturing segment. In the subsequent year, FY17 revenue surged 13.3% YoY to RM85.2mn as both Malaysia and European markets registered higher sales volume. The group saw its net profit increased 25.3% YoY to RM15.7mn due to higher gross profit from the manufacturing segment. For FY18, the group’s revenue stayed flat at RM85.3mn while core profit dropped 19.9% YoY to RM12.6mn from RM15.7mn, due to margin erosion as a result of higher raw materials cost and higher administrative expenses. Going forward, we forecast revenue and net profit for FY19 to FY21 to grow steadily, backed by higher production volumes. Future Plans and Business Strategies The group’s future plans and business strategies are as follows: 1) Expansion of Production Capacity 80.3% of the proceeds will be used to increase production capacity by purchasing new machineries and equipment. The group aims to increase the production capacity by approximately 212,600 pieces a month by 31 December 2021 via purchase of additional universal grinding machines and other supporting machineries and equipment, which are expected to be delivered progressively from 2019 to 2021. 2) Expansion of Sales Network The group intends to expand the sales team by increasing the headcount of new technical or sales engineers in Malaysia, Germany, and China in order to support the business expansion. The sales team is mainly in charge to conduct sales and provide technical support to the local customers. Besides, the group also plans to keep higher inventory level of finished goods in the branch offices in order to improve the stock availability. This will allow the sales team to fulfill the customers’ orders more promptly. Page 5 of 7
34. 24-May-19 Outlook According to an independent market research report prepared by Prot égé Associates, which was enclosed in the IPO prospectus, the global cutting tools industry was estimated to be valued at USD19.4bn in 2018 and is expected to hit USD23.5bn by 2023 with a forecast compound annual growth rate of 3.9% from 2019 to 2023. In 2018, Asia Pacific represents the largest and fastest growing cutting tools market while Europe represents the second largest cutting tools market in the world. Given that HPMT has strong distribution network in both Asia and Euro regions, the healthy growth in cutting tools market will continue to provide business opportunities to the group. Balance Sheet On a pro forma basis, post-listing, the balance sheet is expected to improve from a net debt position of RM26.3mn (net gearing level of 0.37x) to a net debt position of RM21.8mn (net gearing level of 0.19x). Dividend Policy The Board intends to adopt a policy of recommending at least 30% of the net profit in each financial year to be distributed as dividends. Earnings Forecast We estimate the group to record earnings growths of 6.6%, 11.0%, and 12.5% to RM13.4mn, RM14.9mn, and RM16.8mn for FY19, FY20, and FY21 respectively, supported by top-line growth as a result of higher production volumes. The export market is expected to remain as the main revenue generator for the group. All in, our FY19-21 earnings projections are premised on the key assumptions below: Total annual production capacity for cutting tools of 1.9mn pieces for FY19, 2.3mn pieces for FY20, and 2.6mn pieces for FY21 with utilisation rate of 75%, 68%, and 66% respectively. Valuation Currently, there is no listed company from Bursa Malaysia that is directly comparable with HPMT. We believe a target P/E multiple of 13x for HPMT is justifiable considering the group has: a. b. c. Proven track record and strong R&D capabilities with experienced management team; Strong sales and distribution network especially in Asia and Europe; and Potential growth from capacity expansion. Therefore, we derive a target price of RM0.585, based on 13x CY20 EPS. Page 6 of 7
35. 24-May-19 Appendix Exhibit 8 : Standard Tools Source: Company Exhibit 9: Special Tools Source: Company Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Friday, May 24, 2019, the analyst, Chan Mun Chun, 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 7 of 7
36. RESULTS UPDATE Monday , May 27, 2019 FBMKLCI: 1,598.32 Sector: Healthcare THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Kossan Rubber Industries Berhad TP: RM5.10 (+33.6%) Last Traded: RM3.82 Strong Start to FY19 Tan Kam Meng, CFA Buy Tel: +603-2167 9605 kmtan@ta.com.my Review Kossan’s 1QFY19 net profit of RM58.7mn (+31.9% YoY) was within our and consensus expectations at 23.9% and 24.9% of full-year forecast respectively. YoY, PBT increased by 41.6% to RM75.1mn ahead of revenue growth of 16.0% to RM561.5mn. We attribute the robust performance to: i) higher sales volume of 18.8%, ii) efficiency gains, and iii) cost savings. PBT margin improved by 2.4p.p to 13.4% due to higher operating efficiency at new Plant 16 and Plant 17. Share Information Bl oombe rg Code KRI MK Stock Code 7153 Li s ti ng Ma i n Ma rket Sha re Ca p (mn) 1278.9 Ma rke t Ca p (RMmn) 4,885.5 52-wk Hi /Lo (RM) 4.72/3.44 12-mth Avg Da i l y Vol ('000 s hrs ) 1,275.4 Es ti ma ted Free Fl oa t (%) 41.5 Be ta 0.6 Major Shareholders (%) Kos s a n Hol di ngs Bhd - 51.1 EPF - 7.41 QoQ, PBT grew by 5.2% to RM75.1mn despite a drop in revenue of 4.7% to RM561.5mn. We note that the decline in revenue was in tandem with the lower ASP as nitrile raw material prices decreased by circa-6%. Gloves division PBT margin improved by 1.6p.p to 13.7% despite a sharp depreciation in USD/MYR. Coupled with resilient glove demand, the group recorded higher volumes sold of 4.7% as plant utilisation rates were optimal at circa-88%. Forecast Revision Impact We tweaked our FY19/FY20/FY21 earnings estimates by 0.7%/0.6%/0.6% after imputing FY18 audited numbers into our earnings model. Net gea ri ng (x) P/CFPS (x) ROAA (%) ROAE (%) NTA/Sha re (RM) Pri ce / NTA (x) Outlook Plant 18 (2.5bn gloves/annum) and Plant 19 (3.0bn gloves/annum) are set to be fully commissioned by 3Q19 and 4Q19 respectively. By end-19, Kossan’s annual capacity is expected to increase by 20.8% to 32.0bn gloves. We remain positive on the group’s FY19 growth prospects due to favourable forex movement (weaker ringgit against the USD) and lower raw material prices. Valuation & Recommendation Following the earnings revision, TP is raised to RM5.10/share (previously RM5.07/share) based on an unchanged PE multiple of 24.0x. Maintain Buy. www.taonline.com.my Foreca s t Revi s i on (%) Net profi t (RMmn) Cons ens us TA's / Cons e ns us (%) Previ ous Ra ti ng FY19 FY20 0.7 0.6 247.0 272.0 236.1 270.2 104.6 100.7 Buy (Ma i nta i ned) Financial Indicators FY19 0.2 14.0 11.0 17.4 1.1 3.4 FY20 0.2 17.5 11.2 17.2 1.3 3.0 % of FY 23.9 24.9 Wi thi n Wi thi n KRI 3.0 (3.8) (10.7) 6.4 FBM KLCI (2.4) (6.7) (5.1) (11.1) Scorecard vs . TA vs . Cons ens us Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth)Share Pricerelative to the FBMKLCI Source: Bloomberg Page 1 of 3
37. 27-May-19 Table 1 : 1QFY19 Results Analysis FYE Dec Revenue 1QFY18 4QFY18 1QFY19 QoQ YoY 484.2 589.4 561.5 (4.7) 16.0 419.3 519.4 497.0 (4.3) 18.5 - TRPs 43.6 50.4 46.7 (7.3) 7.1 - Clean-room 20.4 18.8 17.1 (9.1) (16.0) - Gloves EBITDA 74.2 98.9 102.6 3.8 38.2 (18.2) (22.6) (23.2) 2.7 27.6 EBIT 56.1 76.3 79.4 4.1 41.7 Net finance cost (3.0) (4.9) (4.3) (11.6) 43.2 Dep. & Amor. PBT 53.0 71.4 75.1 5.2 41.6 47.5 62.5 68.0 8.7 43.2 - TRPs 5.0 8.5 6.8 (19.5) 35.1 - Clean-room 0.4 1.1 0.6 (47.7) 38.2 101.5 - Gloves Tax (7.7) (10.4) (15.6) 50.5 MI (0.8) (1.5) (0.7) (50.7) (3.4) PAT (-MI) 44.5 59.5 58.7 (1.3) 31.9 EPS (sen) 3.5 4.7 4.6 (1.3) 31.9 DPS (sen) 0.0 3.0 0.0 nm nm pp pp Margins: EBITDA margin (%) PBT margin (%) 15.3 16.8 18.3 1.5 2.9 11.0 12.1 13.4 1.3 2.4 - Gloves 11.3 12.0 13.7 1.6 2.4 - TRPs 11.6 16.8 14.6 (2.2) 3.0 2.0 5.8 3.4 (2.5) 1.3 - Clean-room Tax rate (%) PAT (-MI) margin (%) 14.6 14.5 20.8 6.3 6.2 9.2 10.1 10.5 0.4 1.3 Table 2: Earnings Summary FYE Dec (RM mn') R e venue FY17 FY18 FY19F FY20F FY21F 1,957.6 2,140.6 2,571.6 2,811.2 2,981.2 E B ITDA 303.0 329.3 432.5 469.7 492.4 De p. & Am or. (73.2) (76.8) (95.1) (101.0) (106.5) (1.4) (3.2) (14.7) (13.3) (12.0) 0.0 0.0 0.0 0.0 0.0 P BT 228.3 249.3 322.7 355.4 373.9 Ta xa tion (44.1) (44.7) (69.4) (76.4) (80.4) Ne t fina nce cos t EI MI P AT (-MI) E P S (s e n) E P S g rowth (% ) P E R (x) (2.2) (4.8) (6.3) (7.0) (7.3) 182.1 199.8 247.0 272.0 286.2 14.2 15.6 19.3 21.3 22.4 9.0 9.7 23.6 10.1 5.2 26.8 24.5 19.8 18.0 17.1 DP S (s e n) 5.5 6.0 7.6 8.4 8.8 Divide nd yie ld (% ) 1.4 1.6 2.0 2.2 2.3 Page 2 of 3
38. 27-May-19 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rateof 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 Monday, May 27, 2019, the analyst, Tan Kam Meng, who prepared this report, has interest in the following securities covered in this report: (a) nil KaladherGovindan – 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 – 20325048 www.ta.com.my Page 3 of 3
39. ECONOMIC UPDATE Monday , May 27, 2019 FBMKLCI: 1,598.32 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Malaysian Economy Modest Inflation Shazma Juliana Abu Bakar Farid Bin Burhanuddin Tel: +603-2167 9608 Tel: +603-2167 9220 shazma@ta.com.my farid@ta.com.my www.taonline.com.my April Inflation Review Malaysia’s inflation rate, as measured by the Consumer Price Index (CPI), increased by 0.2% YoY in April 2019. The result was, however, below ours and consensus estimate of 0.4% YoY and 0.3% YoY, respectively. On a monthly basis, CPI was flat at 0%. Meanwhile, core-CPI (which excludes most volatile items including fresh food, as well as administered prices of goods and services) rose by 0.5% YoY – the same pace like in the prior month. Four states namely Wilayah Persekutuan Kuala Lumpur (+0.7% YoY), Pulau Pinang (+0.7% YoY), Negeri Sembilan (+0.5% YoY) and Selangor & Wilayah Persekutuan Putrajaya (+0.4% YoY) surpassed the national CPI rate in April 2019. Meanwhile, Johor and Perak showed the same rate of increase as the national CPI. Figure 1: CPI vs. Core-CPI (Jan15 – Apr19) Source: Department of Statistics Malaysia, TA Securities Details showed 6 out of the 12 CPI basket posting positive price growth during the month, namely: 1) Food & Non-alcoholic Beverages rose 1.1% YoY (Mar19: +1.1% YoY), supported by the positive growth of Fish & Seafood (+0.2% YoY), Milk and Eggs (+1.9% YoY), Fruits (+0.1% YoY), Vegetables (+2.2% YoY), and Food away from Home (+3.1% YoY); 2) Alcoholic Beverages & Tobacco (Apr19: +1.2% YoY; Mar19: +1.1% YoY); 3) Housing, Water, Electricity, Gas & Other Fuels (Apr19: +2.0% YoY; Mar19: +2.0% YoY); and 4) Furnishings, Household Equipment & Maintenance (Apr19: +0.2% YoY; Mar19: +0.3% YoY). 5) Also, other components of CPI that had registered price increases include Education and Restaurants & Hotels at 1.2% YoY and 0.8% YoY, respectively. Page 1 of 3
40. 27-May-19 Sustaining the CPI was also higher fuel prices (+1.8% YoY) which resulted a lesser pace of decline for Transport index to -2.6% YoY. That was better than March's 3.0% YoY fall. The average price for RON97 was expensive at RM2.71/litre in April 2019 (Mar19: RM2.51/litre), while prices for Diesel and RON95 remained fixed at RM2.18 and RM2.08/litre, respectively. The sub-index, Fuels & Lubricants for Personal Transport Equipment correspondingly decreased at a lesser pace of 4.2% YoY vs. Mar19’s 4.6% contraction. Outlook We forecast CPI to continue posting mild growth pressures in May 2019, underpinned by higher transportation cost index following increasing trend in average fuel prices. The average fuel prices in May 2019 was slightly higher at RM2.337/litre (vs. Apr19’s RM2.323/litre and May18’s RM2.283/litre). The latest announcement saw that the retail pump prices of RON97 rose by 8 sen to RM2.76/litre for the period 24-31 April. Meanwhile, RON95 and Diesel remained at RM2.08 and RM2.18 per litre, respectively. In terms of quantum difference, May’s average retail price was higher by RM0.05/litre vs. a year ago as well as RM0.01/litre a month ago. At point of writing, average month-to-date global oil price stood at USD71.0/barrel (Apr19: USD71.6/barrel; Mar19: USD66.5/barrel). Looking ahead, price pressures should continue to build amid higher oil prices and as the impact of last year’s tax holiday fades. Although inflation has rebounded after two months of annual price falls, it had contracted at an average rate of 0.2% YoY in 4M19. We generally expect upside risk to the transport index as global crude oil prices are expected to remain stable at current levels. Low base factor will play some role especially in the second half of this year as CPI grew by only 0.4% YoY in 2H18 (1H18: +1.6% YoY). No change to our full year inflation growth expectations of 1.4% for 2019 at this juncture (2018: +1.0% YoY). The persistently low inflation had prompted Bank Negara Malaysia (BNM) to reduce the Overnight Policy Rate (OPR) by 0.25%-points to 3.00% at its 7 May meeting, the first rate cut in nearly three years. As such, growth should continue to be driven from healthy domestic activities, with considerable growth in private spending and investment. Economic activities will get a boost from low interest rate environment after the monetary easing. We believe that the rate cut still leaves the central bank with sufficient interest rate buffer if economic conditions deteriorate further. The next monetary policy meeting is scheduled for 9 July. Figure 2: CPI by Segment (Nov18 – Apr19) % YoY CPI Components Wt. (%) 2018 YoY % 100.0% MoM % 1.0% Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 0.2% 0.2% -0.7% -0.4% 0.2% 0.2% 0.2% 0.1% -0.5% 0.2% 0.2% 0.0% 4M19 Consumer Price Index (CPI) -0.2% Food & Non-Alcoholic Beverages 29.5% 1.6% 1.1% 0.7% 1.0% 1.0% 1.1% 1.1% Alcoholic Beverages & Tobacco 2.4% -0.1% 1.0% 1.1% 1.1% 1.1% 1.1% 1.2% 1.0% 1.1% Clothing & Footwear 3.2% -2.0% -3.1% -3.2% -3.3% -3.2% -3.0% -3.2% -3.1% Housing, Water, Electricity, Gas & Other Fuels 23.8% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Furnishings, H/hold Equip. & Maintenance 4.1% 0.3% -0.1% 0.1% -0.3% 0.1% 0.3% 0.1% 0.1% Health 1.9% 0.8% -0.2% -0.4% -0.5% -0.4% -0.2% -0.3% -0.3% Transport 14.6% 1.6% -2.3% -2.0% -7.8% -6.8% -3.0% -2.6% -5.0% Communication 4.8% -1.7% -1.3% -1.3% -1.2% -1.2% -1.1% -1.1% -1.2% Recreation Services & Culture 4.8% -0.4% -0.3% -0.2% -0.4% -0.4% -0.4% -0.4% -0.4% Education Restaurants & Hotels 1.3% 1.1% 1.4% 1.1% 0.9% 1.3% 1.3% 1.2% 1.1% 2.9% 1.6% 1.2% 1.3% 1.2% 1.3% 1.0% 0.8% 1.1% Miscellaneous Goods & Services 6.7% -1.4% -2.6% -2.4% -2.4% -2.2% -2.0% -2.1% -2.1% Source: Department of Statistics Malaysia, TA Securities Page 2 of 3
41. 27-May-19 Figure 3 : Weekly Difference of Average Pump Price (Jan17 - May19) Figure 4: Malaysia Retail Pump Prices (Jan17 - May19) Source: Ministry of Finance, TA Securities Figure 5: Schedule of MPC and FOMC Meetings (2019) No MPC Meeting FOMC Meeting 1 23 & 24 Jan 2019 29 & 30 Jan 2019 2 4 & 5 March 2019 19 & 20 Mar 2019** 3 6 & 7 May 2019 30 Apr & 1 May 2019 4 8 & 9 Jul 2019 18 & 19 Jun 2019** 5 11 & 12 Sep 2019 30 & 31 Jul 2019 6 4 & 5 Nov 2019 17 & 18 Sep 2019** 7 29 & 30 Nov 2019 8 10 & 11 Dec 2019** **Meeting associated with a Summary of Economic Projections Source: Department of Statistics Malaysia, TA Securities 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 3 of 3
42. RESULTS UPDATE Monday , May 27, 2019 FBMKLCI: 1,598.32 Sector: Technology THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Malaysian Pacific Industries Berhad TP: RM8.85 (+0.6%) Last Traded: RM8.80 Growth Trajectory Affected by Trade Spat Wilson Loo, CFA Tel: +603-2167 9606 SELL wilsonloo@ta.com.my Review MPI reported 3QFY19 net profit of RM16.8mn (-57.3% QoQ, -35.5% YoY). This brought 9MFY19’s net profit to RM98.3mn (-5.0% YoY) which came within ours but below consensus estimates at 77.2% and 63.2% respectively. A second interim dividend of 17.0sen/share (-10.5% YoY) was declared. YTD’s of 27.0sen/share (-6.9% YoY) represents a payout ratio of 52.2% and was slightly short of our FY19 forecast of 29.0sen/share. 9MFY19’s revenue declined marginally 0.6% YoY to RM1,142.0mn. Based on the average forex of RM4.12/USD (+0.1% YoY), we estimate revenue in USD was down 0.5% YoY to ~US$276.7mn. The flattish performance was mainly due to the weak 3QFY19 which we opine in addition to seasonality was weighted by customers deferring orders and exercising cautiousness on inventory levels against the backdrop of global trade tensions. Profitability was intact with EBITDA and PBT margin at 24.5% (0.7pp YoY) and 13.0% (-0.2pp YoY). 3QFY19’s revenue declined 17.1% QoQ and 9.9% YoY to RM330.1mn. Based on the average forex of RM4.09/USD (-1.9% QoQ, +4.2% YoY), we estimate revenue in USD was down 15.2% QoQ and 13.1% YoY to ~US$80.7mn. Note that the YoY decline followed 9th consecutive quarters of YoY growth achieved since 2QFY17. As a result of the fall in revenue, profitability was squeezed with EBITDA and PBT margin at 21.2% (-5.0pp QoQ, -1.8pp YoY) and 7.7% (-4.8pp QoQ, -2.0pp YoY). Meanwhile, the group remained in healthy financial standing with a robust net cash position of RM688.6mn or RM3.46/share (+1.7% QoQ, +24.2% YoY). Impact We cut our FY19/FY20/FY21 earnings estimates by 1.6%/2.7%/2.4% to RM125.3mn/RM172.5mn/RM222.8mn upon revising our forex assumptions to our latest in-house forecast of RM4.10/USD from RM4.15/USD previously. We also revise our FY19 dividend forecast to 27.0sen/share (previously 29.0sen/share) Outlook We expect FY19 to be a challenging year dragged by a weaker 2H against the backdrop of global trade tensions. We forecast earnings to decline in FY19 (-12.1%) before resuming growth in FY20/FY21 (+37.7%/+29.2%) driven by the automotive and industrial segments. That said, there may be downside to our forecasts if the on-going trade spat prolongs and escalate. On a positive note, the group’s robust net cash position of RM688.6mn will be facilitative of 1) M&A opportunities, 2) automation efforts, and 3) unprecedented downturns. www.taonline.com.my Share Information Bloomberg Code MPI MK Stock Code 3867 Listing Main Market Share Cap (mn) 198.9 Market Cap (RMmn) 1,750.3 52-wk Hi/Lo (RM) 13.20/8.69 12-mth Avg Daily Vol ('000 shrs) 166.0 Estimated Free Float (%) 32.3 Beta 1.0 Major Shareholders (%) Hong Leong Co Malaysia Bhd - 52.5 EPF - 6.0 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY19 FY20 (1.6) (2.7) 125.3 172.5 152.7 173.2 82.0 99.6 Sell (Maintained) Financial Indicators Net gearing (x) CFPS (RM) P/CFPS (x) ROAA (%) ROAE (%) NTA/Share (RM) Price/ NTA (x) FY19 Net cash 1.8 4.8 7.2 10.0 6.0 1.5 FY20 Net cash 1.8 4.9 9.0 12.6 6.5 1.4 % of FY 77.2 63.2 Within Below MPI (12.9) (11.3) (22.4) (10.3) FBM KLCI (2.4) (6.7) (5.1) (11.1) Scorecard vs. TA vs. Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 3
43. 27-May-19 Valuation Following the downward earnings revisions , our TP for MPI is lowered slightly to RM8.85/share (previously RM8.90/share) based on an unchanged EV/EBITDA of 4.0x which implies a PE of 12.5x against CY19 EPS. Reiterate Sell. Key downside risks include: 1) escalation in global trade tensions, 2) a strengthening of the ringgit against the USD and 3) surge in commodity prices (i.e., copper and gold). Table 1: Earnings Summary (RMmn) FYE Jun 30 Revenue EBITDA EBITDA margin (%) Dep. & amortisation EBIT Net finance cost EI PBT Tax MI Net profit Core net profit EPS (sen) EPS Growth (%) PER (x) EV/EBITDA (x) DPS (sen) Div Yield (%) FY17 1,544.5 444.6 28.8 (193.0) 251.6 (0.6) 0.0 251.0 (32.2) (40.8) 177.9 177.9 84.8 4.2 10.4 0.0 27.0 3.1 FY18 1,542.3 390.0 25.3 (181.9) 208.1 (1.2) 0.0 207.0 (34.5) (30.0) 142.5 142.5 67.9 (19.9) 13.0 0.0 29.0 3.3 FY19F 1,468.5 359.7 24.5 (176.9) 182.8 13.0 0.0 195.7 (39.1) (31.3) 125.3 125.3 59.7 (12.1) 14.7 0.0 27.0 3.1 FY20F 1,656.6 428.6 25.9 (175.2) 253.4 16.1 0.0 269.5 (53.9) (43.1) 172.5 172.5 82.2 37.7 10.7 0.0 29.0 3.3 Figure 1: Forward EV/EBITDA FY21F 1,858.0 502.5 27.0 (174.0) 328.5 19.5 0.0 348.1 (69.6) (55.7) 222.8 222.8 106.1 29.2 8.3 0.0 29.0 3.3 Figure 2: Forward PE x x 23.0 6.5 21.0 6.0 19.0 5.5 +1sd: 5.2x +1sd: 16.1x 17.0 5.0 15.0 7.0 Source: Bloomberg, TA Securities Dec-18 Mar-19 Jun-18 Sep-18 Dec-17 Mar-18 Jun-17 Sep-17 Dec-16 Jun-15 Sep-15 Dec-14 Mar-15 -1sd: 7.9x Jun-14 Mar-19 Dec-18 Jun-18 Sep-18 Mar-18 Dec-17 Jun-17 Sep-17 Mar-17 Dec-16 Jun-16 Sep-16 Mar-16 Dec-15 Jun-15 Sep-15 Mar-15 3.0 Dec-14 2.0 Jun-14 5.0 Sep-14 2.5 Sep-14 -1sd: 3.1x Mar-17 9.0 Jun-16 3.5 Dec-15 11.0 3.0 Mean: 12.0x 13.0 Sep-16 Mean: 4.1x 4.0 Mar-16 4.5 Source: Bloomberg, TA Securities Page 2 of 3
44. 27-May-19 Table 2 : 9MFY19 Results Analysis (RMmn) FYE Jun 30 Revenue EBITDA Dep. & amor. EBIT Net finance cost EI PBT Tax MI Net profit Core net profit Capex USD/MYR rate (RM) EPS (sen) DPS (sen) 3QFY18 366.3 84.3 (44.3) 39.9 (0.0) 0.0 39.9 (8.2) (5.7) 26.0 26.0 56.2 3.93 13.7 19.0 2QFY19 398.2 104.4 (44.2) 60.3 (0.1) 0.0 60.2 (10.6) (10.3) 39.2 39.2 49.1 4.17 20.6 0.0 3QFY19 330.1 69.9 (43.7) 26.3 (0.8) 0.0 25.5 (4.0) (4.7) 16.8 16.8 0.0 4.09 8.8 17.0 QoQ (%) (17.1) (33.0) (1.1) (56.4) 751.1 n/a (57.6) (62.2) (54.4) (57.3) (57.3) (100.0) (1.9) (57.3) n/a YoY (%) (9.9) (17.0) (1.5) (34.1) 6,053.8 n/a (36.1) (51.1) (17.6) (35.5) (35.5) (100.0) 4.2 (35.5) (10.5) 9MFY18 1,149.2 289.9 (137.5) 152.3 (0.4) 0.0 151.9 (27.6) (20.9) 103.4 103.4 146.2 4.12 54.5 29.0 9MFY19 1,142.0 280.2 (129.9) 150.3 (1.4) 0.0 148.9 (24.6) (26.1) 98.3 98.3 127.6 4.12 51.7 27.0 YoY (%) (0.6) (3.4) (5.6) (1.3) 229.5 n/a (2.0) (10.9) 24.6 (5.0) (5.0) (12.7) 0.1 (5.0) (6.9) 23.0 10.9 7.1 20.5 26.2 15.1 9.9 17.6 21.2 7.7 5.1 15.7 pp (5.0) (7.4) (4.8) (1.9) pp (1.8) (3.2) (2.0) (4.8) 25.2 13.2 9.0 18.2 24.5 13.0 8.6 16.5 pp (0.7) (0.2) (0.4) (1.7) Profitability ratios (%) EBITDA margin PBT margin Net profit margin Tax rate [ TH E RE M A ININ G OF T H IS P A GE IS IN TE N TI O NA L L Y L E F T BL AN K] Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Monday, May 27, 2019, the analyst, Wilson Loo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
45. RESULTS UPDATE Monday , May 27, 2019 FBMKLCI: 1,598.32 Sector: Oil & Gas THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* MISC Berhad TP: RM6.30 (-3.4%) Last Traded: RM6.52 Boosted by Stronger Petroleum Charter Rates Kylie Chan Sze Zan Tel: +603-2167 9601 SELL kyliechan@ta.com.my Review MISC’s 1Q19 core net profit of RM468mn (+29% QoQ, +54% YoY) was within our expectations and consensus’ forecasts - accounting for 30%/28% of full-year forecasts respectively. Core net profit excludes one-off exceptional gains totalling RM41.2mn for acquisition of business (RM23.7mn) and vessel disposal (RM17.5mn). www.taonline.com.my Share Information Bloomberg Code MISC MK Stock Code 3816 Listing Main Market Share Cap (mn) 4,464 Market Cap (RMmn) 29,104 Par Value 1.00 52-wk Hi/Lo (RM) 5.03/7.22 12-mth Avg Daily Vol ('000 shrs) YoY improved results were mainly driven by:- 1) improved charter rates for the Petroleum fleet, and 2) LNG fleet expansion. The latter comprised:- 1) 2 units of newbuild Seri C class, and 2) newly acquired LNG Lerici and LNG Portovenere. To a smaller extent, bottomline expansion was also aided by contribution from FSO Benchamas’ charter contract (start: Aug-18). The above more than offset:- 1) weaker contribution from Heavy Engineering on the back of a depleted orderbook, and 2) lower earnings days for the Petroleum fleet following disposal of 4 vessels in 4Q18. The group declared 1st interim DPS of 7 sen (1Q18: 7 sen), which was inline with our FY19 DPS forecast of 30 sen. Key Takeaways from Conference Call MISC will install six of its VLCCs (total fleet: 12) with scrubbers to comply with IMO2020 requirements. This is upon the client’s request, whereby installation costs are shared with the client. 1,692.0 Estimated Free Float (%) 15.0 Beta 0.9 Major Shareholders (%) Petronas - 62.7 EPF - 6.5 Amanah Saham - 4.8 Forecast Revision FY19 Forecast Revision (%) 13.3 1,715.4 1,876.1 Consensus 1,653 1,769 TA's / Consensus (%) 103.8 106.0 Net profit (RMm) Previous Rating Sell (Maintained) Scorecard % of FY vs TA 30 Within vs Consensus 28 Within Financial Indicators FY19 MISC will likely use IMO2020 compliant fuels, instead of scrubbers, given that the former is more eco-friendly. Nevertheless, MISC believes it is too early at this juncture to lock-in contracts to secure supply of compliant fuels. Whereas for MISC’s LNG vessels, the Group targets IMO2020 compliance by end-19, and is currently in the process of retrofitting the fleet. Impact We account for cheaper bunker fuel costs and higher petroleum charter rates. Additionally, we incorporate our revised estimates for the Heavy Engineering segment (MMHE). As a result, our FY19-21 earnings forecasts are raised by 11%-13%. Valuation & Outlook FY19 would likely be a stronger year for MISC, underpinned by:) 1) recovery in marine orders at the Heavy Engineering segment due to new IMO2020 regulations, 2) delivery of 2 newbuild Seri C Class LNG carriers, 3) full-year contributions from FY18 newbuilds (2 each of LNG carriers, FSOs, Aframaxes, and Suezmaxes), 4) new petroleum vessels in FY19 (2x Aframaxes and 1x DP Shuttle) and 5) maiden contribution from 2x LNG carriers(Portovenere & Lerici). For LNG carriers, newbuild deliveries (Figure 3) remain heightened, whilst competition in spot markets continues to intensify. There are currently 49 FY20 11.0 Net Debt/Equity (%) FY20 0.2 0.2 FCFPS (sen) 21.0 21.5 P/CFPS (x) 31.1 30.3 ROE (%) 4.8 5.2 ROA (%) 3.3 3.6 NTA/Share (RM) 7.8 7.9 Price/NTA (x) 0.8 0.8 Share Performance (%) Price Change MISC FBM KLCI 1 mth (4.8) (2.4) 3 mth (6.6) (6.7) 6 mth 0.3 (5.1) 12 mth 9.4 (11.1) (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 4
46. 27-May-19 vessels in the spot market , and 61 speculative newbuilds (4Q18: 40) in 201922. 1Q19 recovery in petroleum tanker charter rates remain fragile. This is given moderate fleet growth in 2019 (2018: stagnant). Additionally, heightened scrapping activities (Figure 4) in 4Q18 have abated. Furthermore, movement of crude supply is unlikely to ramp up due to lower production from Venezuela and Iran, coupled with stable production from OPEC+. On a brighter note, tanker fleet growth is expected to be moderated by a reduction in active fleet. This is because leading to IMO 2020 implementation, management expects fleet down time for scrubber retrofits, and increased demand for floating storage. We roll forward our valuation base year to CY20, and revise our target to 15x CY20 P/E (previous: 17x) to be in-line with global peers. As a result, our target price (TP) on MISC is raised to RM6.30 (previous: RM5.90). Maintain Sell. A key rerating catalyst for MISC is sustainable earnings turnaround for the petroleum segment. Figure 1: Quarterly Results Analysis (RM mn) FYE Dec Revenue 1Q19 4Q18 1Q18 QoQ (%) YoY (%) 2,277.7 2,388.5 2,020.8 (4.6) 12.7 ---> LNG Shipping (USD'mn) 152.8 134.1 148.9 13.9 2.6 ---> Petroleum Shipping (USD'mn) 286.9 307.9 248.7 (6.8) 15.4 ---> Offshore (USD'mn) 66.0 65.4 75.1 0.9 (12.1) ---> Heavy Engineering (USD'mn) 49.6 65.4 45.8 (24.2) 8.3 Core EBIT 633.1 303.9 382.3 >100 65.6 Finance cost (134.2) (109.5) (75.7) 22.6 77.3 43.1 160.9 12.6 (73.2) >100 4.2 >-100 Associates & JV EI 42.7 (24.7) >100 Reported PBT 542.0 355.3 319.2 52.5 69.8 Core PBT 31.4 58.5 499.3 380.0 315.0 ---> LNG Shipping (USD'mn) 69.8 34.7 65.3 >100 6.9 ---> Petroleum Shipping (USD'mn) 18.0 16.7 (18.4) 7.8 >-100 ---> Offshore (USD'mn) 32.7 56.7 32.4 (42.3) 0.9 ---> Heavy Engineering (USD'mn) (7.2) (6.2) (6.6) 16.1 9.1 (26.0) (28.4) (10.2) (8.5) (1.6) >-100 Taxation MI (5.5) 11.8 >100 >100 Reported Net Profit 510.5 338.7 307.4 50.7 66.1 Core Net Profit 467.8 363.4 303.2 28.7 54.3 10.4 8.2 6.9 28.1 51.3 7.0 9.0 7.0 ppt ppt Core EPS (sen) DPS (sen) Core EBIT margin (%) 27.8 12.7 18.9 15.1 8.9 Core Pretax margin (%) 21.9 15.9 15.6 6.0 6.3 ---> LNG Shipping (%) 45.7 25.9 43.9 19.8 1.8 13.7 6.3 5.4 (7.4) 0.9 ---> Offshore (%) 49.5 86.7 43.1 (37.2) 6.4 ---> Heavy Engineering (%) (14.5) (9.5) (14.4) (5.0) (0.1) 20.5 15.2 15.0 5.3 5.5 5.2 7.5 3.2 (2.3) 2.0 ---> Petroluem Shipping (%) Core Net margin (%) Tax rate (%) Page 2 of 4
47. 27-May-19 Figure 2 : Earnings Summary (RM mn) FYE Dec 31 FY17 FY18 FY19E FY20F FY21F Revenue 10,037.7 8,780.3 8,649.2 9,053.4 9,128.6 EBITDA 4,047.7 3,318.9 4,111.9 4,180.2 4,161.9 40.3 37.8 47.5 46.2 45.6 Pretax Profit 1,910.9 1,303.4 1,759.5 1,924.3 1,984.4 Net Profit 1,981.4 1,311.5 1,715.4 1,876.1 1,934.8 Core Net Profit 1,888.8 1,270.8 1,715.4 1,876.1 1,934.8 EBITDA Margin (%) EPS (sen) 44.4 29.4 38.4 42.0 43.3 Core EPS (sen) 42.3 28.5 38.4 42.0 43.3 Core EPS growth (%) (18.0) (32.7) 34.9 9.4 3.1 Core PER (x) 15.4 22.9 17.0 15.5 15.0 (sen) 30.0 30.0 30.0 30.0 30.0 (%) 4.6 4.6 4.6 4.6 4.6 DPS Div Yield Figure 3: LNG Newbuilds to be Delivered (2019-22) Source: Company, LNG Shipping Database, Woodmac Figure 4: Yearly Scrapping Data for Petroleum Vessels Figure 5: Annual Deliveries and Orderbook for Petroleum Vessels Source: Clarksons, Company Source: Clarksons, Company Page 3 of 4
48. 27-May-19 [ TH E RE M A IN DE R OF T H IS P A GE IS IN TE N TI O NA L L Y L E F T BL AN K] Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Monday, May 27, 2019, the analyst, Kylie Chan Sze Zan, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
49. RESULTS UPDATE Monday , May 27, 2019 FBMKLCI: 1,598.32 Sector: Automotive THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM1.28 (+19.6%) Pecca Group Berhad Last Traded: RM1.07 Looking Good Angeline Chin Buy Tel: +603-2167 9611 angelinechin@ta.com.my Review Pecca Group Bhd’s (Pecca) 9MFY19 results came in above expectations. 9MFY19 core net profit increased by 63.2% YoY to RM13.5mn. The commendable results were mainly due to higher demand for leather car seat covers and better margin. 9MFY19 revenue increased by 14.4% YoY to RM95.5mn. OEM revenue increased by 53.1% YoY to RM54.8mn mainly due to increase in production of new car models. On the other hand, the revenue from its aviation division was still low at less than RM1mn in 9MFY19 Meanwhile, EBIT margin expanded once again to 16.6% in versus 9.7% in 9MFY18. No dividend was declared for the quarter under review. Impact We raise FY19-FY21 earnings forecast by 22.8% - 37.6%, respectively, after factoring in higher margins and interest income into our earnings model. Outlook Going forward, Pecca’s outlook remains decent. The launch of a new Perodua SUV in FY19 should drive earnings growth in the near-term. Despite higher total industry volume (TIV) (+6.0% YoY) for the first four months of 2019, the Total Industry Production (TIP) volume had shown a declined versus the same period last year (-0.8% YoY). Management is cautious of growth prospects amid the soft market environment. That said, the Group’s massive cash pile and long-term funds totalling circa RM94mn (RM0.50/share) should be sufficient to cushion any downside risk. Valuation Rolling forward our valuation base year to CY20, we raise Pecca’s TP to RM1.28 (previously RM1.15), based on PER of 12x. We continue to like Pecca due to its decent dividend yield and healthy balance sheet. The group has a dividend policy of 40% of PAT, which could be a catalyst to support the share price in the near future. www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) PECCA MK 5271 Main Market 187.7 200.9 1.15/0.685 302 33.8 0.8 MRZ - 46.73 Datuk Teoh - 5.62 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY19 FY20 37.6 30.0 17.2 18.9 15.9 16.8 108 112 Buy (Maintained) Financial Indicators Net Debt / Equity (x) CFPS (sen) Price / CFPS (x) ROA (%) NTA/Share (RM) Price/NTA (x) FY19 Net cash 5.5 19.3 9.0 0.9 1.2 FY20 Net cash 6.2 17.4 9.6 0.9 1.2 % of FY 108 85 Above Above Scorecard vs TA vs Consensus Share Performance (%) Price Change PECCA 1 mth (0.9) 3 mth 16.3 6 mth 34.6 12 mth 28.9 FBM KLCI (2.4) (6.7) (5.1) (11.1) (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 2
50. 27-May-19 Figure 1 : Quarterly Results Analysis FYE June RM(mn) 3QFY18 Revenue 29.0 EBIT 2.4 Net Int Inc 0.7 EI (0.5) Pretax 2.6 Taxation (0.6) MI 0.0 Net Profit 2.0 Core net profit 2.5 Core EPS DPS EBIT Margin Pretax Margin Core Net Margin Tax Rate 2QFY19 33.7 5.9 1.1 0.5 7.5 (1.6) (0.1) 5.7 5.3 3QFY19 34.7 5.7 0.7 (0.1) 6.2 (1.8) 0.1 4.5 4.6 QoQ (%) 2.9 (4.4) (38.4) n.m. (16.7) (8.8) nm (21.0) (11.9) YoY (%) 19.6 137.8 (3.9) 83.1 142.6 >-100 >100 121.8 81.4 9MFY18 83.5 8.1 2.2 (0.6) 9.7 (2.1) 0.1 7.7 8.3 9MFY19 95.5 15.8 2.2 0.2 18.2 (4.4) (0.0) 13.8 13.5 (sen) (sen) 1.4 0.0 2.8 0.0 2.5 0.0 4.4 2.0 7.2 0.0 (%) (%) (%) (%) 8.2 8.9 8.8 22.3 17.6 22.3 15.6 21.8 16.3 18.0 13.3 28.5 9.7 11.6 9.9 21.6 16.6 19.0 14.2 24.1 FY17 122.2 20.6 16.8 19.6 14.7 14.3 7.6 (13.6) 14.0 5.0 4.7 FY18 112.7 16.4 14.5 12.9 10.2 11.0 5.9 (23.3) 18.3 5.0 4.7 Figure 2: Earnings Summary FYE June (RM mn) Revenue EBITDA EBITDA margin (%) Pretax Profit Reported Net Profit Core Net Profit Core EPS (sen) Core EPS Growth (%) Core PER (x) DPS (sen) Dividend yield (%) FY19F 125.6 23.5 18.7 21.8 17.2 17.2 9.2 56.5 11.7 7.0 6.5 FY20F 136.6 25.8 18.9 23.9 18.9 18.9 10.0 9.6 10.7 8.0 7.5 QoQ (%) 14.4 94.9 (1.9) nm 87.1 >-100 nm 78.5 63.2 FY21F 149.3 28.8 19.3 26.8 21.2 21.2 11.2 11.6 9.5 8.0 7.5 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 Monday, May 27, 2019, the analyst, Angeline Chin, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 2
51. RESULTS UPDATE Monday , May 27, 2019 FBMKLCI: 1,598.32 Sector: Oil & Gas THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Petronas Chemicals Group Bhd TP: RM9.10 (+4.0%) Last Traded: RM8.75 US-China Trade War Press on Product Prices Kylie Chan Sze Zan Tel: +603-2167 9601 HOLD kyliechan @ta.com.my Review Petronas Chemicals Group’s (Pet Chem) 1Q19 core profit of RM814mn (35% QoQ, -42% YoY) was below expectations, accounting for 15%/18% of our full-year forecasts and consensus’. The disappointment largely stemmed from a plunge in product prices. The YoY weakness was mainly driven by: 1) lower sales volume (-14% YoY), and 2) weaker spreads. This was on the back of: 1) weak downstream and derivatives demand, 2) lower production of methanol (-27% YoY) due to plant turnaround (TA), and 3) lower average product prices, particularly for Methanol. Additionally, YoY bottomline decline was exacerbated by: 1) associates’ slippage into losses, and 2) higher opex due to plant TA. 40%-associate BASF-Petronas Chemicals underwent hefty plant TA across multiple plants in 1Q19. Nevertheless, these plants have since recommenced operations. The above more than offset the positive impact of higher interest income, lower taxes, and a stronger USD/MYR. Group PU of 95% (1Q18: 100%) was lower due to plant TA at PC Methanol as well as aromatics plants. Correspondingly, PU for the Fertilizers & Methanol (F&M) segment dropped to 92% (1Q18: 100%). On a worrying note, EBITDA margin for Olefins & Derivates (O&D) dipped to 27% (4Q18: 32%, 1Q18: 35%). Therefore, in spite of 100% PU, EBITDA contribution from O&D nosedived 34% YoY. Share Information Bloomberg Code 1) Da Vinci Group To recap, in May-19, Pet Chem acquired 100% of Da Vinci Group (DVC) for EUR163mn. DVC (Figures 4 & 5) is an own brand reseller and producer of silicone products (78%) and lube additives & chemicals (22%). DVC’s acquisition is in-line with the Group’s strategy to increase its specialty chemicals portfolio to 20%-25% over the next 20 years. Additionally, it enables the Group to diversify into silicone products which is less susceptible to oil price volatility. PCHEM MK Stock Code 5183 Listing Main Market Share Cap (mn) 8,000 Market Cap (RMmn) 70,000 Par Value (RM) 0.10 52-wk Hi/Lo (RM) 10.20/7.93 12-mth Avg Daily Vol ('000 shrs) 7,535.0 Estimated Free Float (%) 21.0 Beta Major Shareholders (%) 0.7 Petronas - 64.4 EPF - 7.7 KWAP - 2.6 Forecast Revision (%) FY19 Forecast Revision (%) (25.9) FY20 (17.4) Core Net Profit (RM mn) 3,979.6 4,476.4 Consensus 4,548.4 4,959.3 87.5 90.3 TA/Consensus (%) Previous Rating Buy (Downgraded) Scorecard % of FY vs TA 15 Below vs Consensus 18 Below Financial Indicators Net Debt/Equity (x) Key Takeaways from Conference Call www.taonline.com.my FY19 FY20 Net Cash Net Cash ROA (%) 10.4 11.1 ROE (%) 12.3 12.9 NTA/Share (RM) 4.1 4.3 P/NTA (x) 2.2 2.0 Share Performance Price Change (%) PCHEM FBMKLCI 1 mth (3.8) (2.4) 3 mth (5.8) (6.7) 6 mth (5.6) (5.1) 12 mth 5.2 (11.1) (12-Mth) Share Price relative to the FBMKLCI DVC’s acquisition is fair, within the 5-year historical range of 8.5x -11x EV/EBITDA for comparable companies. This transaction is targeted for completion by 4Q19. Management is confident of expanding DVC, given Pet Chem’s financial clout. We understand that prior to its acquisition, DVC faced capital constraints. Source: Bloomberg Page 1 of 4
52. 27-May-19 Currently , the Derivates & Specialty Chemicals segment contribute 5%-6% of Group EBITDA. Post-acquisition, DVC is expected to boost contribution by circa 2%, and potentially to 10% in 10 years’ time. 2) Other Takeaways Although Ethylene-MEG market spreads have turned negative, this product was profitable for PChem in 1Q19. This was due to the Group’s cheap gas feedstock advantage. However, management acknowledges that its upcoming MEG capacity (mn tpa) in RAPID (naphtha-based) would not be insulated from declining market spreads. FY19 refreshed effective tax rate guidance is lower at 9%-12% (previous: 12%-15%). The Group had completed a statutory TA at its aromatics plant in April. Meanwhile, the MTBE plant was shutdown in early-May. A product shipment was unable to land at port in 1Q19 due to bad weather. Therefore, this delayed shipment would contribute to 2Q19 volumes instead. Impact We slash product prices by average 10% -15% given that our previous assumptions were on the high side. Additionally, we lower the effective tax rate assumption to 12% (previous: 15%) in-line with management’s renewed guidance. On the back of this, our FY19-21 earnings forecasts are reduced by 16%-26%. Valuation Following the forecast revision and change of valuation base year to CY20, our TP for Pet Chem is lowered to RM9.10 (previous: RM10.80). This is based on unchanged 9.5x CY20 EV/EBITDA. We believe that product prices will weaken on the back of an intensifying US-China global trade war. This is underpinned by: 1) product dumping by US petrochemical producers, 2) weakened demand from China, which is one of the largest global petrochemical consumers, and 3) significant addition of new ethylene capacity globally. Global ethylene capacity expansion in 2019 amounts to 6.6mn tpa (4% of global capacity). In 2020, this would snowball to 10.6mn tpa (5% of global capacity). The bulk of the capacity expansion emanates from US (2019/20: 54%/31%). Furthermore, China PMI has dipped progressively to 50.5 in April-19 from 51.9 back in Nov-18. According to management, this was evident from subdued lunar New Year demand in 1Q19, as customers held back on purchases. Against this backdrop of rapidly deteriorating US-China trade stand-off, we downgrade Pet Chem to Hold from Buy previously. Page 2 of 4
53. 27-May-19 Figure 1 : Quarterly Results Analysis YE 31 Dec (RM mn) Revenue Core EBITDA 1Q19 4Q18 QoQ 1Q18 YoY 4,130.0 5,062.0 (18.4) 4,951.0 (16.6) 1,249.0 1,702.0 (26.6) 1,973.0 (36.7) Depreciation (407.0) Net Finance Costs Associates EI (393.0) (411.0) (1.0) 87.0 92.0 (5.4) 42.0 107.1 (24.0) 42.0 >-100 17.0 >-100 (12.0) Pretax Profit 3.6 893.0 34.0 >-100 1,477.0 (39.5) (285.0) >-100 1,336.0 (33.2) Taxation (80.0) (178.0) (55.1) (229.0) (65.1) Minority Interest (11.0) (14.0) (21.4) (0.0) >100 Reported Net Profit Core Net Profit Core EPS (sen) 802.0 1,285.0 (37.6) 1,107.0 (27.5) 814.0 1,251.0 (34.9) 1,392.0 (41.5) (34.8) 16.3 (37.9) 10.1 15.6 DPS (sen) - 18.0 Core EBITDA Margin 30% 34% 40% Core Net Margin 20% 25% 28% - Figure 2: Quarterly Segmental Analysis YE 31 Dec (RM mn) 1Q19 4Q18 1Q18 QoQ% YoY% Olefins & Derivatives 2,749.0 3,224.0 3,151.0 (14.7) (12.8) Fertilisers & Methanol 1,367.0 1,850.0 1,787.0 (26.1) (23.5) 13.0 >-100 7.7 Revenue Others 14.0 (12.0) Group 4,130.0 5,062.0 4,951.0 (18.4) (16.6) Olefins & Derivatives 733.0 1,032.0 1,106.0 (29.0) (33.7) Fertilisers & Methanol 587.0 676.0 779.0 (13.2) (24.6) 1,320.0 1,708.0 1,885.0 (22.7) (30.0) EBITDA Group EBITDA margin Olefins & Derivatives 27% 32% Fertilisers & Methanol 43% 37% 35% 44% Group 32% 34% 38% Figure 3: Earnings Summary FYE Dec (RM mn) 2017 2018 2019E 2020F 2021F Revenue 17,407.0 19,576.0 16,889.1 17,855.8 18,501.8 EBITDA 6,625.0 7,110.0 5,853.1 6,266.5 6,447.7 EBITDA margin (%) Pretax Profit 38.1 36.3 34.7 35.1 34.8 5,236.0 5,650.0 4,577.2 5,148.7 5,368.3 Reported Net Profit 4,177.0 4,979.0 3,979.6 4,476.4 4,667.4 Core Net Profit 4,184.0 5,226.0 3,979.6 4,476.4 4,667.4 52.1 65.1 49.7 56.0 58.3 EPS (sen) EPS growth (%) 34.0 24.9 (23.6) 12.5 4.3 PER (x) 16.8 13.4 17.6 15.6 15.0 DPS (sen) 27.0 32.0 25.0 28.0 30.0 (%) 3.1 3.7 2.9 3.2 3.4 Dividend Yield Page 3 of 4
54. 27-May-19 Figure 4 : DVC Geographic Footprint Figure 5: DVC Key Product Lines Source: Company Source: Company 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 Monday, May 27, 2019, the analyst, Kylie Chan Sze Zan, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
55. Monday , 27 May, 2019 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. Weekly Technical Stock Watch 2. Daily Money Flow of Technical Stock Watch 3. Technical Stock Watch a. FBMKLCI 4. Weekly Ace Market Stock Watch 5. Weekly Small Cap Stock Watch 6. Weekly Stock Screen 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
56. Technical View Monday , May 27, 2019 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Technical Stock Watch Malaysia Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my AXIATA (6888) RM4.45 BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 4.71 4.22 3.72 10-day 30-day 50-day RM RM RM DMI BUY Recent Signal Signal Change CIMB (1023) RM RM RM BUY RM5.15 BOLLINGER BANDS SIMPLE MOVING AVERAGES 5.27 5.18 5.09 10-day 30-day 50-day DMI Recent Signal Signal Change 4.41 4.19 4.18 DAILY MACD Recent Signal Signal Change Upper Middle Lower www.taonline.com.my RM RM RM 5.14 5.14 5.19 DAILY MACD SELL Recent Signal Signal Change BUY Page 1 of 10
57. 27-May-19 DIGI (6947) RM4.60 BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 4.81 4.60 4.38 10-day 30-day 50-day RM RM RM DMI DAILY MACD Recent Signal Signal Change SELL Recent Signal Signal Change MAYBANK (1155) RM RM RM SIMPLE MOVING AVERAGES 9.31 9.08 8.85 10-day 30-day 50-day DMI Recent Signal Signal Change SELL RM8.99 BOLLINGER BANDS Upper Middle Lower 4.65 4.63 4.62 RM RM RM 8.98 9.11 9.21 DAILY MACD SELL Recent Signal Signal Change BUY BUY Page 2 of 10
58. 27-May-19 DIALOG (7277) RM3.31 BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 3.38 3.22 3.05 10-day 30-day 50-day RM RM RM DMI DAILY MACD Recent Signal Signal Change BUY Recent Signal Signal Change GADANG (9261) RM RM RM SIMPLE MOVING AVERAGES 0.90 0.83 0.77 10-day 30-day 50-day DMI Recent Signal Signal Change BUY RM0.805 BOLLINGER BANDS Upper Middle Lower 3.21 3.20 3.20 RM RM RM 0.82 0.80 0.75 DAILY MACD BUY Recent Signal Signal Change SELL Page 3 of 10
59. 27-May-19 HIBISCUS (5199) RM1.03 BOLLINGER BANDS Upper Middle Lower RM RM RM Recent Signal Signal Change SIMPLE MOVING AVERAGES 1.20 1.09 0.99 SELL 10-day 30-day 50-day RM RM RM DAILY MACD Recent Signal Signal Change SUNCON (5263) RM RM RM SIMPLE MOVING AVERAGES 2.09 1.98 1.86 10-day 30-day 50-day DMI Recent Signal Signal Change SELL RM1.90 BOLLINGER BANDS Upper Middle Lower 1.06 1.11 1.10 RM RM RM 1.93 1.98 1.94 DAILY MACD SELL Recent Signal Signal Change SELL Page 4 of 10
60. 27-May-19 Close Name 24 /May FBMKLCI 1598.32 Change High Low (3.55) 1,606.85 1,592.97 Bollinger Bands Lower Mid RSI Upper 14d Moving Averages 10d 30d DMI 50d 1,590.53 1,622.26 1,653.99 36.95 1,608.42 1,624.22 1,637.74 MACD DI + DI - ADX 15.71 37.09 27.95 Diff Line (21.38) (10.68) DMI MACD DMI MACD Signal Diff Recent Signal Signal Change (9.28) (1.40) SELL SELL - - AFFIN 2.06 -0.02 2.09 2.05 2.04 2.15 2.26 36.33 2.11 2.16 2.19 10.67 24.09 28.44 (13.43) -0.03 -0.02 (0.01) SELL SELL - - ABMB 3.66 0.01 3.76 3.66 3.54 3.86 4.17 31.66 3.71 3.91 4.00 16.82 33.31 29.56 (16.50) -0.10 -0.09 (0.01) SELL SELL - - AMBANK 4.33 0.03 4.36 4.28 4.29 4.42 4.55 39.68 4.38 4.43 4.46 16.67 19.08 15.87 (2.41) -0.04 -0.03 (0.01) SELL SELL SELL - AXIATA 4.45 0.04 4.50 4.35 3.72 4.22 4.71 58.68 4.41 4.19 4.18 31.95 20.65 21.85 11.30 0.09 0.07 0.02 BUY BUY - - CIMB 5.15 0.00 5.20 5.15 5.09 5.18 5.27 46.91 5.14 5.14 5.19 12.44 17.40 21.29 (4.97) -0.02 -0.02 0.00 SELL BUY - - DIGI 4.60 0.05 4.71 4.53 4.38 4.60 4.81 45.61 4.65 4.63 4.62 23.67 26.53 15.02 (2.86) 0.00 0.00 (0.01) SELL SELL - - GAMUDA 3.22 0.02 3.28 3.18 3.10 3.33 3.56 47.24 3.24 3.28 3.14 21.59 27.50 17.28 (5.90) 0.01 0.04 (0.03) SELL SELL - - GENTING 6.28 -0.05 6.41 6.28 6.30 6.76 7.22 26.18 6.57 6.76 6.79 11.31 35.29 26.62 (23.98) -0.12 -0.07 (0.05) SELL SELL - - GENM 3.09 -0.04 3.11 3.06 3.06 3.16 3.26 47.14 3.13 3.15 3.21 13.59 20.92 17.02 (7.33) -0.03 -0.02 (0.00) SELL SELL - - IHH 5.31 -0.05 5.37 5.24 5.35 5.51 5.66 37.16 5.45 5.52 5.61 11.37 30.23 23.85 (18.86) -0.06 -0.04 (0.01) SELL SELL - - IOICORP 4.26 0.07 4.28 4.12 4.13 4.36 4.60 28.71 4.26 4.41 4.45 15.04 24.60 25.92 (9.56) -0.08 -0.06 (0.02) SELL SELL - - MALAKOFF 0.80 0.02 0.80 0.79 0.77 0.85 0.94 24.11 0.82 0.87 0.89 6.88 31.20 35.42 (24.32) -0.02 -0.01 (0.00) SELL SELL - - MAXIS 5.37 -0.02 5.43 5.33 5.25 5.37 5.48 50.01 5.36 5.41 5.42 16.10 14.77 11.35 1.33 -0.02 -0.02 0.00 BUY BUY BUY BUY MAYBANK 8.99 -0.03 9.05 8.96 8.85 9.08 9.31 42.49 8.98 9.11 9.21 12.81 34.84 28.56 (22.03) -0.07 -0.07 0.00 SELL BUY - BUY MBSB 0.93 0.01 0.93 0.92 0.93 0.97 1.02 30.55 0.96 0.98 0.97 13.74 31.29 17.91 (17.56) -0.01 0.00 (0.01) SELL SELL - - RHBBANK 5.65 -0.05 5.79 5.65 5.64 5.81 5.98 45.01 5.76 5.79 5.76 23.22 14.15 26.06 9.07 0.00 0.01 (0.01) BUY SELL - - SIME 2.20 0.05 2.22 2.13 2.11 2.26 2.41 35.03 2.19 2.25 2.23 10.41 36.75 32.18 (26.35) -0.02 -0.01 (0.01) SELL SELL - - 11.54 -0.12 11.74 11.52 11.49 12.00 12.51 31.70 11.76 12.09 12.34 8.51 32.16 46.64 (23.64) -0.21 -0.19 (0.02) SELL SELL - - TM 2.70 0.05 2.70 2.64 2.64 2.79 2.95 29.09 2.72 2.87 2.99 9.12 33.88 41.02 (24.76) -0.08 -0.08 (0.00) SELL SELL - - WPRTS 3.66 -0.09 3.83 3.66 3.49 3.69 3.90 54.51 3.61 3.71 3.73 19.11 20.92 21.23 (1.82) -0.04 -0.04 (0.00) SELL SELL - - AEMULUS 0.20 -0.01 0.20 0.20 0.19 0.22 0.24 20.76 0.21 0.22 0.23 13.98 26.42 19.40 (12.44) -0.01 -0.01 (0.00) SELL SELL - - ARMADA 0.19 0.01 0.19 0.18 0.17 0.21 0.26 38.98 0.19 0.21 0.20 26.52 20.80 31.57 5.72 0.00 0.00 (0.00) BUY SELL - - DIALOG 3.31 -0.07 3.39 3.28 3.05 3.22 3.38 64.69 3.21 3.20 3.20 32.52 19.80 20.35 12.72 0.03 0.01 0.02 BUY BUY - - DNEX 0.25 0.00 0.26 0.25 0.24 0.27 0.30 31.82 0.26 0.28 0.28 12.20 33.15 25.05 (20.95) -0.01 -0.01 (0.00) SELL SELL - - FGV 1.15 0.00 1.16 1.14 1.14 1.22 1.31 39.35 1.20 1.23 1.20 20.93 26.06 14.85 (5.13) -0.01 0.00 (0.01) SELL SELL SELL - GADANG 0.81 0.00 0.82 0.79 0.77 0.83 0.90 51.26 0.82 0.80 0.75 26.46 24.51 25.00 1.95 0.02 0.03 (0.01) BUY SELL - - GLOBETRONICS 1.53 0.02 1.56 1.50 1.51 1.80 2.10 23.48 1.69 1.84 1.82 16.54 41.78 26.12 (25.24) -0.08 -0.04 (0.03) SELL SELL - - HIAP TECK 0.24 -0.01 0.24 0.24 0.24 0.26 0.29 38.00 0.25 0.27 0.27 13.43 31.26 21.44 (17.83) -0.01 -0.01 (0.00) SELL SELL - - HIBISCUS 1.03 -0.01 1.04 1.00 0.99 1.09 1.20 41.63 1.06 1.11 1.10 20.42 27.99 20.71 (7.57) -0.02 -0.01 (0.00) SELL SELL - - INARI 1.39 0.07 1.41 1.27 1.35 1.62 1.89 27.38 1.51 1.66 1.63 12.41 45.28 33.94 (32.87) -0.07 -0.04 (0.03) SELL SELL - - MPI 8.80 0.07 8.88 8.71 9.11 9.76 10.41 18.44 9.56 9.78 9.81 10.22 40.62 28.01 (30.40) -0.18 -0.07 (0.11) SELL SELL - - MRCB 0.89 -0.01 0.91 0.88 0.91 1.00 1.09 38.00 0.97 0.99 0.94 23.08 29.09 32.87 (6.00) 0.00 0.01 (0.02) SELL SELL SELL - SAPURA ENERGY 0.29 -0.01 0.30 0.29 0.30 0.32 0.34 35.36 0.31 0.32 0.33 14.68 24.87 15.29 (10.19) -0.01 0.00 (0.00) SELL SELL - - TENAGA SKP RESOURCES 1.28 0.06 1.28 1.22 1.20 1.32 1.44 30.79 1.27 1.35 1.34 9.30 37.36 38.82 (28.07) -0.04 -0.02 (0.01) SELL SELL - - SUNCON 1.90 0.02 1.90 1.83 1.86 1.98 2.09 39.13 1.93 1.98 1.94 17.58 30.22 23.33 (12.64) -0.01 0.00 (0.02) SELL SELL - - UEM SUNRISE 0.85 0.00 0.86 0.85 0.83 0.90 0.97 42.41 0.87 0.89 0.87 18.77 21.90 20.50 (3.13) -0.01 0.00 (0.01) SELL SELL - - VELESTO 0.27 0.00 0.28 0.27 0.26 0.29 0.32 40.73 0.28 0.29 0.29 11.98 27.13 25.05 (15.15) -0.01 0.00 (0.00) SELL SELL - - UNISEM 2.38 -0.16 2.50 2.38 2.43 2.60 2.76 43.23 2.65 2.58 2.60 24.24 28.34 32.40 (4.10) 0.00 0.00 (0.01) SELL SELL SELL - VS INDS 0.96 -0.03 0.99 0.96 0.96 1.08 1.19 35.53 1.03 1.08 1.06 14.90 31.33 26.69 (16.43) -0.02 -0.01 (0.01) SELL SELL - - WASEONG 0.69 -0.02 0.71 0.69 0.69 0.73 0.77 40.91 0.72 0.74 0.76 20.26 31.63 16.97 (11.38) -0.01 -0.01 0.00 SELL BUY - - 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. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. 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 5 of 10
61. 27-May-19 LIST OF RECOMMENDED BUY STOCKS FROM MARCH 2019 TO CURRENT Stock ABMB AEMULUS AFFIN AXIATA BUMI ARMADA BUMI ARMADA BUMI ARMADA CIMB CIMB DIALOG DIALOG DIALOG DIGI DNEX DNEX FGV FGV GADANG GADANG GADANG GAMUDA GENM GENM GENTING GENTING GLOBETRONICS GLOBETRONICS GLOBETRONICS GLOBETRONICS HIAP TECK HIAP TECK HIBISCUS HIBISCUS HIBISCUS HIBISCUS IHH HEALTHCARE INARI INARI INARI INARI MAYBANK MAYBANK MAYBANK MAYBANK MBSB MBSB MPI MPI MRCB MRCB SAPURA ENERGY SAPURA ENERGY SAPURA ENERGY SAPURA ENERGY SIME DARBY SIME DARBY SIME DARBY SKP RESOURCES SUNCON SUNCON TENAGA TENAGA TENAGA UEM SUNRISE UEM SUNRISE UEM SUNRISE VELESTO VELESTO VELESTO VS INDS VS INDS VS INDS WAH SEONG WAH SEONG REC Date 15-May 26-Mar 20-Mar 24-May 13-Mar 9-Apr 2-May 19-Mar 23-May 28-Mar 12-Apr 9-May 24-May 29-Mar 30-Apr 21-Mar 3-Apr 7-Mar 5-Apr 17-May 5-Apr 4-Apr 17-Apr 4-Apr 17-Apr 27-Mar 16-Apr 26-Apr 8-May 21-Mar 11-Apr 15-Mar 28-Mar 18-Apr 9-May 16-May 14-Mar 26-Mar 16-Apr 8-May 19-Mar 10-Apr 19-Apr 23-May 22-Mar 10-Apr 22-Mar 26-Apr 7-Mar 2-Apr 13-Mar 29-Mar 9-Apr 2-May 6-Mar 20-Mar 15-May 24-Apr 8-Mar 17-May 6-Mar 19-Apr 16-May 8-Mar 2-Apr 11-Apr 3-Apr 18-Apr 30-Apr 14-Mar 27-Mar 24-Apr 15-Mar 12-Apr Total funds invested * Total unrealised profit/(loss) Return BUY Price 3.62 0.25 2.29 4.41 0.19 0.20 0.23 5.48 5.14 3.17 3.19 3.16 4.55 0.28 0.28 1.23 1.22 0.62 0.71 0.83 3.07 3.28 3.08 6.95 6.74 1.74 1.90 2.08 1.82 0.30 0.29 1.07 1.08 1.15 1.06 5.52 1.55 1.56 1.77 1.69 9.49 9.30 9.00 8.99 0.96 0.99 9.90 10.04 0.83 0.90 0.32 0.33 0.35 0.32 2.15 2.17 2.17 1.40 1.78 1.94 12.80 12.16 11.78 0.84 0.84 0.87 0.30 0.30 0.29 1.00 1.04 1.16 0.80 0.76 24-May-19 Price 3.66 0.20 2.06 4.45 0.19 0.19 0.19 5.15 5.15 3.31 3.31 3.31 4.60 0.25 0.25 1.15 1.15 0.81 0.81 0.81 3.22 3.09 3.09 6.28 6.28 1.53 1.53 1.53 1.53 0.24 0.24 1.03 1.03 1.03 1.03 5.31 1.39 1.39 1.39 1.39 8.99 8.99 8.99 8.99 0.93 0.93 8.80 8.80 0.89 0.89 0.29 0.29 0.29 0.29 2.20 2.20 2.20 1.28 1.90 1.90 11.54 11.54 11.54 0.85 0.85 0.85 0.27 0.27 0.27 0.96 0.96 0.96 0.69 0.69 Change (+/-) 0.04 (0.06) (0.23) 0.04 (0.01) (0.02) (0.05) (0.33) 0.01 0.14 0.12 0.15 0.05 (0.03) (0.03) (0.08) (0.07) 0.19 0.10 (0.02) 0.15 (0.19) 0.01 (0.67) (0.46) (0.21) (0.37) (0.55) (0.29) (0.06) (0.05) (0.04) (0.05) (0.12) (0.03) (0.21) (0.16) (0.17) (0.38) (0.30) (0.50) (0.31) (0.01) 0.00 (0.03) (0.06) (1.10) (1.24) 0.06 (0.01) (0.03) (0.04) (0.06) (0.03) 0.05 0.03 0.03 (0.12) 0.12 (0.04) (1.26) (0.62) (0.24) 0.01 0.01 (0.02) (0.03) (0.03) (0.02) (0.05) (0.09) (0.21) (0.11) (0.07) 207,020 (10,240) -4.95% % 1.10 (22.00) (10.04) 0.91 (2.63) (7.50) (19.57) (6.02) 0.19 4.42 3.76 4.75 1.10 (10.71) (10.71) (6.50) (5.74) 29.84 13.38 (3.01) 4.89 (5.79) 0.32 (9.64) (6.82) (12.07) (19.47) (26.44) (15.93) (20.00) (17.24) (3.74) (4.63) (10.43) (2.83) (3.80) (10.32) (10.90) (21.47) (17.75) (5.27) (3.33) (0.11) 0.00 (3.12) (6.06) (11.11) (12.35) 7.23 (1.11) (9.38) (12.12) (17.14) (9.38) 2.33 1.38 1.38 (8.57) 6.74 (2.06) (9.84) (5.10) (2.04) 1.19 1.19 (2.30) (10.00) (10.00) (6.90) (4.50) (8.17) (17.67) (13.75) (9.21) Upside Targets ** MT 4.04 4.12 0.25 0.29 2.36 2.48 4.82 5.20 0.25 0.28 0.25 0.28 0.25 0.28 5.30 5.46 5.30 5.46 3.50 3.66 3.50 3.66 3.50 3.66 4.78 5.04 0.30 0.34 0.30 0.34 1.32 1.38 1.32 1.38 0.94 0.98 0.94 0.98 0.94 0.98 3.65 4.05 3.46 3.66 3.46 3.66 6.96 7.31 6.96 7.31 1.72 1.93 1.72 1.93 1.72 1.93 1.72 1.93 0.29 0.34 0.29 0.34 1.13 1.22 1.13 1.22 1.13 1.22 1.13 1.22 5.70 5.98 1.53 1.73 1.53 1.73 1.53 1.73 1.53 1.73 9.60 9.88 9.60 9.88 9.60 9.88 9.60 9.88 1.05 1.10 1.05 1.10 9.72 10.38 9.72 10.38 1.02 1.13 1.02 1.13 0.34 0.37 0.34 0.37 0.34 0.37 0.34 0.37 2.40 2.52 2.40 2.52 2.40 2.52 1.48 1.65 2.13 2.32 2.13 2.32 12.88 13.54 12.88 13.54 12.88 13.54 0.94 1.02 0.94 1.02 0.94 1.02 0.32 0.36 0.32 0.36 0.32 0.36 1.08 1.21 1.08 1.21 1.08 1.21 0.78 0.82 0.78 0.82 ST LT 4.21 0.31 2.58 5.82 0.32 0.32 0.32 5.62 5.62 3.80 3.80 3.80 5.30 0.38 0.38 1.48 1.48 1.02 1.02 1.02 4.53 3.96 3.96 7.65 7.65 2.11 2.11 2.11 2.11 0.38 0.38 1.30 1.30 1.30 1.30 6.20 1.89 1.89 1.89 1.89 10.16 10.16 10.16 10.16 1.15 1.15 11.05 11.05 1.21 1.21 0.40 0.40 0.40 0.40 2.64 2.64 2.64 1.81 2.50 2.50 14.20 14.20 14.20 1.11 1.11 1.11 0.40 0.40 0.40 1.35 1.35 1.35 0.90 0.90 ST 10.38 28.21 14.56 8.31 35.14 35.14 35.14 2.91 2.91 5.74 5.74 5.74 3.91 20.00 20.00 14.78 14.78 16.77 16.77 16.77 13.35 11.97 11.97 10.83 10.83 12.42 12.42 12.42 12.42 20.83 20.83 9.71 9.71 9.71 9.71 7.34 10.07 10.07 10.07 10.07 6.79 6.79 6.79 6.79 12.90 12.90 10.45 10.45 14.61 14.61 17.24 17.24 17.24 17.24 9.09 9.09 9.09 15.63 12.11 12.11 11.61 11.61 11.61 10.59 10.59 10.59 18.52 18.52 18.52 13.09 13.09 13.09 13.04 13.04 % Upside MT 12.57 48.72 20.39 16.85 51.35 51.35 51.35 6.02 6.02 10.57 10.57 10.57 9.57 36.00 36.00 20.00 20.00 21.74 21.74 21.74 25.78 18.45 18.45 16.40 16.40 26.14 26.14 26.14 26.14 41.67 41.67 18.45 18.45 18.45 18.45 12.62 24.46 24.46 24.46 24.46 9.90 9.90 9.90 9.90 18.28 18.28 17.95 17.95 26.97 26.97 27.59 27.59 27.59 27.59 14.55 14.55 14.55 28.91 22.11 22.11 17.33 17.33 17.33 20.00 20.00 20.00 33.33 33.33 33.33 26.70 26.70 26.70 18.84 18.84 LT 15.03 58.97 25.24 30.79 72.97 72.97 72.97 9.13 9.13 14.80 14.80 14.80 15.22 52.00 52.00 28.70 28.70 26.71 26.71 26.71 40.68 28.16 28.16 21.82 21.82 37.91 37.91 37.91 37.91 58.33 58.33 26.21 26.21 26.21 26.21 16.76 35.97 35.97 35.97 35.97 13.01 13.01 13.01 13.01 23.66 23.66 25.57 25.57 35.96 35.96 37.93 37.93 37.93 37.93 20.00 20.00 20.00 41.41 31.58 31.58 23.05 23.05 23.05 30.59 30.59 30.59 48.15 48.15 48.15 41.36 41.36 41.36 30.43 30.43 Upside Targets ** ST = Short Term (one month) MT = Medium Term (three months) LT = Long Term (above six months) * The portfolio assumes each position consists of 1,000 shares and no deductions for any charges, fees and commision ** Upside Targets are derived from the subsequent Fibonacci Projection levels The above table is a performance summary of our top BUY recommendations from March 2019 to current date (sorted by name) together with upside targets, which are taken from subsequent Fibonacci Projection targets which may likely be achieved in one month (ST), three months (MT) and above six months (LT) from recommendation date. Interpretation: Investors should aim to take profit/sell trading positions when the percentage upside on the last three columns falls to 5% or below (shaded column). A negative percentage value indicates the upside target for the particular time-frame has been breached. Any revision in upside targets will be highlighted in bold. Page 6 of 10
62. 27-May-19 Support & Resistance on Recommended Stocks Portfolio No. RSI Stochastics Stock Code Name SL S2 S1 17/May R1 R2 R3 Ratio 0.181 AEMULUS 0.15 0.17 0.19 0.205 0.25 0.29 0.32 3.00 2 5210 ARMADA 0.14 0.16 0.18 0.195 0.25 0.28 0.32 3.67 45.30 3 7277 DIALOG 2.80 2.92 3.06 3.300 3.38 3.56 3.66 0.33 59.66 4 4456 DNEX 0.16 0.20 0.24 0.255 0.34 0.38 0.43 5.67 34.46 1.268 3.762 4.361 33.3 37.9 5 5222 FGV 1.05 1.12 1.16 1.190 1.32 1.38 1.48 4.33 45.53 6.120 8.994 10.883 30.8 30.8 1 Stop-loss Support 2 Support 1Current price Resistance Resistance 1 Resistance 2 3 Reward Volume (mn Shares) Stock 23.93 today 5d-avg 20d-avg %K %D 0.845 0.464 0.726 16.7 16.7 18.435 99.655 166.599 21.4 19.0 10.398 12.435 7.966 74.5 67.4 6 9261 GADANG 0.68 0.73 0.78 0.845 0.89 0.94 0.98 0.69 58.55 7.068 7.602 17.659 73.9 55.1 7 5398 GAMUDA 2.78 3.02 3.15 3.290 3.65 4.04 4.53 2.57 52.74 4.677 8.427 6.772 71.8 58.1 8 7022 GTRONIC 1.37 1.54 1.66 1.690 1.93 2.11 2.28 8.00 34.64 0.645 1.712 1.836 25.0 21.0 9 5072 HIAP TECK 0.18 0.20 0.22 0.250 0.29 0.34 0.38 1.33 38.67 0.577 3.808 2.880 50.0 50.0 10 5199 HIBISCUS 0.83 0.90 0.99 1.090 1.22 1.30 1.36 1.30 49.69 18.987 19.639 28.663 75.0 67.0 11 0.166 INARI 1.22 1.33 1.42 1.500 1.73 1.89 2.04 2.88 37.35 7.372 9.338 10.959 29.6 39.6 12 3867 MPI 7.57 8.10 8.90 9.500 10.38 11.05 11.87 1.47 33.84 0.256 0.120 0.092 15.3 21.8 13 1651 MRCB 0.80 0.84 0.93 0.970 1.13 1.21 1.31 4.00 48.57 3.256 10.081 17.905 40.7 44.4 14 5218 SAPNRG 0.26 0.28 0.30 0.315 0.37 0.40 0.44 3.67 43.41 29.992 49.640 72.586 50.0 40.5 15 7155 SKPRES 0.94 1.05 1.16 1.250 1.48 1.65 1.81 2.56 34.47 0.371 1.035 0.890 26.7 30.9 16 5263 SUNCON 1.60 1.70 1.81 1.900 2.13 2.32 2.50 2.56 41.20 0.755 2.306 1.248 20.8 26.4 17 5148 UEM SUNRISE 0.70 0.77 0.80 0.850 0.94 1.02 1.11 1.80 41.92 0.812 1.768 3.775 16.7 31.2 18 5243 VELESTO 0.21 0.24 0.26 0.275 0.32 0.36 0.40 3.00 41.63 9.288 17.834 22.884 20.0 17.8 19 6963 VS INDS 0.77 0.84 0.90 1.030 1.21 1.35 1.52 1.38 42.89 6.067 12.092 12.080 36.4 36.1 20 5142 WAH SEONG 0.60 0.65 0.70 0.725 0.82 0.90 1.00 3.80 45.27 0.112 0.333 0.306 72.7 72.7 No. Stock Stock Code Name SL S2 S1 24/May R1 R2 R3 Ratio 1 0.181 AEMULUS 0.15 0.17 0.19 0.195 0.25 0.29 0.32 11.00 2 5210 ARMADA 0.14 0.16 0.18 0.185 0.25 0.28 0.32 13.00 3 7277 DIALOG 2.80 2.92 3.06 3.310 3.50 3.66 3.80 4 4456 DNEX 0.16 0.20 0.24 0.250 0.34 0.38 0.43 Stop-loss Support 2 Support 1Current price Resistance Resistance 1 Resistance 2 3 Reward RSI Volume (mn Shares) Stochastics today 5d-avg 20d-avg %K 17.99 0.073 0.710 0.645 0.0 %D 0.0 41.96 33.568 40.539 159.132 14.3 9.5 0.76 57.55 10.085 14.344 8.893 76.6 85.1 9.00 31.82 3.208 2.492 3.814 16.7 16.7 5 5222 FGV 0.98 1.05 1.10 1.150 1.32 1.38 1.48 3.40 39.35 2.774 8.023 9.915 13.3 16.6 6 9261 GADANG 0.68 0.73 0.78 0.805 0.89 0.94 0.98 3.40 51.26 3.115 5.652 11.100 45.0 48.3 59.2 7 5398 GAMUDA 2.78 3.02 3.15 3.220 3.65 4.04 4.53 6.14 48.59 5.858 4.181 6.231 63.6 8 7022 GTRONIC 1.30 1.37 1.42 1.530 1.72 1.93 2.11 1.73 26.43 1.376 1.793 1.711 8.8 7.5 9 5072 HIAP TECK 0.18 0.20 0.22 0.240 0.29 0.34 0.38 2.50 35.53 0.562 0.890 2.395 28.6 30.4 10 5199 HIBISCUS 0.83 0.90 0.99 1.030 1.13 1.22 1.30 2.50 40.19 13.382 13.969 25.724 25.0 38.9 11 0.166 INARI 0.90 1.07 1.22 1.390 1.53 1.73 1.89 0.82 34.95 25.344 12.119 9.990 30.0 13.7 12 3867 MPI 7.57 8.10 8.50 8.800 9.72 10.38 11.05 3.07 22.05 0.041 0.140 0.110 8.4 6.2 13 1651 MRCB 0.73 0.80 0.84 0.890 1.02 1.13 1.21 2.60 36.73 7.886 4.986 13.476 7.1 7.3 14 5218 SAPNRG 0.24 0.26 0.28 0.290 0.34 0.37 0.40 5.00 31.11 42.210 41.210 56.465 12.5 20.8 15 7155 SKPRES 0.94 1.05 1.16 1.280 1.48 1.65 1.81 1.67 44.51 0.174 0.389 0.813 53.8 22.9 16 5263 SUNCON 1.60 1.70 1.81 1.900 2.13 2.32 2.50 2.56 42.83 0.889 0.728 1.136 33.3 24.2 17 5148 UEM SUNRISE 0.70 0.77 0.80 0.850 0.94 1.02 1.11 1.80 42.41 1.851 0.891 2.016 23.1 19.8 39.0 18 5243 VELESTO 0.21 0.24 0.26 0.270 0.32 0.36 0.40 5.00 40.73 6.113 14.037 23.588 28.6 19 6963 VS INDS 0.77 0.84 0.90 0.955 1.08 1.21 1.35 2.27 32.45 9.571 8.746 10.175 0.0 6.1 20 5142 WAH SEONG 0.55 0.60 0.65 0.690 0.78 0.82 0.90 2.25 35.83 0.241 0.332 0.305 9.1 39.4 Sources: Bloomberg, TA Securities Legend: Reward Ratio = (R1 - CP)/ (CP - S1) Where CP = Current Price Upgrade in price levels shaded dark green and bold Downgrade in price levels lightly shaded RSI: The Relative Strength Index (RSI) is used to measure the velocity of a security's price movement to identify overbought and oversold conditions. RSI reading below 30 indicates an oversold condition, while RSI value greater than 70 indicates overbought condition. Stochastics: measures the velocity of a security's price movement to identify overbought and oversold conditions. The indicator measures current price relative to highs and lows over a time period. When Reward Ratio increase to > 1; RSI < 30 & Stochastics %K & %D < 30 = oversold; look to BUY When Reward Ratio decrease to < 1; RSI > 70 & Stochastics %K & %D > 70 = overbought; look to SELL Page 7 of 10
63. 27-May-19 Support & Resistance on Momentum Stocks No. Stock Stock Stop-lossSupport 2SupportCurrent 1 price ResistanceResistance 1 Resistance 2 3Reward Code Name SL S2 S1 17/May R1 R2 R3 Ratio 1 5204 PRESTARIANG 0.25 0.31 0.38 0.400 0.51 0.67 0.80 5.50 2 0.138 MYEG 1.10 1.22 1.32 1.450 1.63 1.84 2.12 3 8877 EKOVEST 0.54 0.68 0.78 0.835 0.97 1.10 4 4723 JAKS 0.50 0.60 0.66 0.720 0.84 5 1589 IWCITY 0.50 0.62 0.77 0.875 6 7108 PERDANA 0.22 0.26 0.31 7 5216 DSONIC 0.29 0.35 8 5141 DAYANG 0.80 9 5253 ECONPILE 10 6181 MALTON RSI Volume (mn Shares) Stochastics today 5d-avg 20d-avg %K %D 36.61 2.788 10.721 35.7 43.2 1.38 48.30 26.834 26.766 27.077 65.2 63.8 1.18 2.45 54.22 40.225 59.153 110.945 25.8 26.0 0.98 1.12 2.00 43.50 2.970 7.026 42.9 53.6 1.02 1.10 1.18 1.38 44.54 16.225 18.284 50.202 8.8 14.3 0.345 0.40 0.45 0.50 1.57 39.80 4.136 5.818 12.279 47.1 40.8 0.40 0.455 0.58 0.67 0.76 2.27 35.85 0.595 0.968 2.584 25.0 26.9 0.86 0.98 1.150 1.27 1.45 1.60 0.71 33.03 12.337 26.153 20.838 11.5 9.9 0.45 0.50 0.55 0.625 0.73 0.80 0.86 1.40 50.06 6.509 18.296 31.441 37.5 47.2 0.39 0.46 0.51 0.540 0.63 0.66 0.70 3.00 43.85 1.509 2.033 16.7 28.6 No. Stock Stock Stop-lossSupport 2SupportCurrent 1 price ResistanceResistance 1 Resistance 2 3Reward Code Name SL S2 S1 24/May R1 R2 R3 Ratio 1 5204 PRESTARIANG 0.25 0.30 0.34 0.375 0.44 0.48 0.52 1.86 2 0.138 MYEG 1.10 1.22 1.32 1.410 1.63 1.84 2.12 3 8877 EKOVEST 0.54 0.62 0.70 0.770 0.83 0.91 4 4723 JAKS 0.50 0.60 0.66 0.705 0.84 5 1589 IWCITY 0.58 0.65 0.71 0.780 6 7108 PERDANA 0.20 0.22 0.24 7 5216 DSONIC 0.29 0.35 8 5141 DAYANG 0.70 9 5253 ECONPILE 10 6181 MALTON RSI 5.879 7.022 9.246 Volume (mn Shares) Stochastics today 5d-avg 20d-avg %K %D 34.93 4.173 6.540 26.7 13.7 2.44 46.01 15.378 23.340 26.094 52.4 40.6 1.04 0.86 46.50 31.536 33.881 93.695 6.3 5.1 0.98 1.12 3.00 42.11 1.549 6.266 13.6 20.8 0.82 0.93 1.06 0.57 37.98 12.135 11.806 40.039 11.6 5.5 0.270 0.31 0.35 0.40 1.33 25.84 5.786 7.408 10.819 12.5 7.6 0.40 0.445 0.58 0.67 0.76 3.00 34.45 0.508 0.865 1.837 22.2 14.1 0.80 0.86 0.920 1.00 1.13 1.27 1.33 24.37 34.110 36.222 21.876 12.2 8.2 0.45 0.50 0.55 0.590 0.73 0.80 0.86 3.50 44.78 7.852 11.976 23.161 12.0 12.3 0.39 0.46 0.49 0.530 0.58 0.63 0.66 1.25 42.65 1.078 1.557 16.7 16.7 4.384 3.571 6.433 Sources: Bloomberg, TA Securities Legend: Reward Ratio = (R1 - CP)/ (CP - S1) Where CP = Current Price Upgrade in price levels shaded dark green and bold Downgrade in price levels lightly shaded RSI: The Relative Strength Index (RSI) is used to measure the velocity of a security's price movement to identify overbought and oversold conditions. RSI reading below 30 indicates an oversold condition, while RSI value greater than 70 indicates overbought condition. Stochastics: measures the velocity of a security's price movement to identify overbought and oversold conditions. The indicator measures current price relative to highs and lows over a time period. When Reward Ratio increase to > 1; RSI < 30 & Stochastics %K & %D < 30 = oversold; look to BUY When Reward Ratio decrease to < 1; RSI > 70 & Stochastics %K & %D > 70 = overbought; look to SELL Page 8 of 10
64. 27-May-19 Daily Money Flow of Technical Stock Watch Malaysia Chartist : Stephen Soo No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 37 38 39 39 40 Name Tel: +603-2167 9607 Total Money Flow (RM'mn) 15-May 16-May FBMKLCI (12.5) 21.4 AFFIN ABMB AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AEMULUS ARMADA DIALOG DNEX FGV GADANG GTRONIC HIAP TECK HIBISCUS INARI MPI MRCB SAPURA ENERGY SKP RESOURCES SUNCON UEMS VELESTO UNISEM VS IND WASEONG (0.1) 0.3 (0.1) (2.2) 0.2 0.7 0.5 (1.6) (0.0) (0.4) (0.0) (0.0) (0.3) 2.0 0.0 (1.8) 0.2 2.0 (0.6) (0.0) (0.0) (0.2) 0.2 0.0 0.1 0.1 0.3 0.0 0.6 (0.9) 0.1 (0.1) (0.1) 0.1 (0.1) 0.1 (0.0) 0.0 0.1 0.1 (0.0) 0.3 (0.3) (2.5) (2.1) (2.6) (0.6) (0.5) 0.0 4.5 0.0 (0.1) (0.4) (7.9) (0.1) 1.5 0.0 2.5 0.4 0.1 (0.0) (0.1) 0.6 (0.0) 0.0 (0.1) 0.0 0.0 (0.2) (0.3) (0.0) 0.2 (0.4) 0.0 0.0 (0.0) (0.1) 0.0 0.1 (0.0) 17-May stsoo@ta.com.my (A) Total 5D MF Prv. Chg (B) Cur. Chg www.taonline.com.my CLOSING PRICE 15-May 16-May 17-May 21-May 23-May Chg (A+B) DMF 21-May 23-May 6.0 8.0 (22.1) 0.9 2.0 (30.1) 1,611 1,599 1,605 1,604 1,602 (1.87) OUT 0.0 0.1 0.3 (0.3) (0.2) (0.5) (0.1) (0.3) 0.4 1.0 0.4 (0.1) (0.2) (2.2) (0.1) 0.5 0.1 (0.0) 0.0 0.1 (0.0) (0.2) 1.3 (0.0) 0.3 (0.1) (0.0) 0.0 0.7 (0.0) 0.2 (0.0) (0.5) 0.0 0.0 (0.0) (0.5) (0.0) (0.0) 0.0 (0.0) (0.0) 0.2 0.2 0.1 0.1 0.3 (0.2) 0.3 1.9 0.2 0.2 0.2 0.0 (0.1) 1.6 (0.4) 0.4 0.0 0.0 (0.0) 0.2 0.7 (0.0) (0.1) 0.0 (0.1) (0.0) 0.4 (0.0) (0.0) (0.1) 0.0 0.1 (0.0) (0.0) (0.1) (0.0) 0.0 0.0 (0.0) (0.3) (0.2) (0.4) (3.2) (1.4) (0.4) (12.2) (0.9) 0.1 (0.6) (0.0) (1.8) 0.3 (0.4) 1.0 0.9 9.8 (0.1) 0.3 0.0 0.0 (0.7) (0.0) (0.0) (0.2) (0.1) 0.0 (0.4) 0.3 (0.2) (0.3) (0.1) 0.0 0.1 0.0 (0.2) 0.0 (0.6) 0.0 (0.1) 0.3 (0.0) (5.2) (5.2) (3.7) (0.3) (14.8) (0.2) 7.1 0.0 0.1 (2.5) (7.7) (0.6) 2.8 0.8 14.6 (0.2) 0.5 (0.0) (0.2) 2.2 (0.1) 0.3 (0.2) 0.1 0.0 1.1 (0.9) 0.1 (0.4) (1.1) 0.2 0.0 0.0 (1.0) 0.0 (0.5) 0.1 (0.0) (0.1) (0.1) 0.5 0.3 0.5 0.4 0.2 (0.1) 0.9 (0.2) 0.3 0.4 2.2 0.0 1.1 (0.5) 0.4 0.0 (0.1) (0.0) 0.4 (0.6) 0.0 (0.4) 0.1 (0.1) (0.0) (0.3) 0.0 (0.3) (0.1) 0.5 0.1 (0.0) 0.0 0.3 (0.0) 0.0 0.0 0.0 (0.2) (0.4) (0.6) (3.3) (1.4) (0.7) (12.1) (1.2) (1.8) (0.8) (0.2) (2.0) 0.3 (0.4) (0.6) 1.3 9.4 (0.1) 0.3 0.0 (0.2) (1.4) (0.0) 0.1 (0.2) 0.0 0.0 (0.7) 0.3 (0.1) (0.2) (0.1) (0.0) 0.1 0.0 (0.1) 0.0 (0.6) 0.0 2.06 3.71 4.36 4.42 5.13 4.70 3.30 6.52 3.12 5.52 4.27 0.81 5.32 9.01 0.95 5.76 2.20 11.78 2.74 3.57 0.21 0.20 3.28 0.26 1.19 0.80 1.68 0.26 1.08 1.57 9.66 0.99 0.31 1.25 1.90 0.88 0.28 2.69 1.04 0.73 2.07 3.73 4.33 4.40 5.13 4.65 3.20 6.45 3.12 5.49 4.20 0.80 5.30 8.96 0.93 5.73 2.20 11.64 2.75 3.45 0.21 0.19 3.22 0.26 1.19 0.83 1.68 0.25 1.08 1.53 9.60 0.97 0.32 1.28 1.94 0.87 0.28 2.65 1.03 0.72 2.10 3.76 4.35 4.44 5.16 4.65 3.29 6.50 3.14 5.46 4.21 0.81 5.36 9.00 0.94 5.74 2.20 11.58 2.75 3.55 0.21 0.20 3.30 0.26 1.19 0.85 1.69 0.25 1.09 1.50 9.50 0.97 0.32 1.25 1.90 0.85 0.28 2.58 1.03 0.73 2.11 3.68 4.39 4.39 5.14 4.57 3.23 6.38 3.07 5.30 4.22 0.80 5.36 8.99 0.94 5.88 2.17 11.68 2.70 3.58 0.20 0.19 3.36 0.25 1.18 0.83 1.59 0.24 1.07 1.40 9.10 0.94 0.31 1.22 1.91 0.85 0.29 2.54 1.01 0.72 2.08 3.65 4.30 4.41 5.15 4.55 3.20 6.33 3.13 5.36 4.19 0.79 5.39 9.02 0.92 5.70 2.15 11.66 2.65 3.75 0.20 0.18 3.38 0.25 1.15 0.81 1.51 0.25 1.04 1.32 8.73 0.90 0.30 1.22 1.88 0.85 0.27 2.54 0.98 0.71 (0.03) (0.03) (0.09) 0.02 0.01 (0.02) (0.03) (0.05) 0.06 0.06 (0.03) (0.02) 0.03 0.03 (0.02) (0.18) (0.02) (0.02) (0.05) 0.17 0.00 (0.01) 0.02 0.00 (0.03) (0.02) (0.08) 0.01 (0.03) (0.08) (0.37) (0.04) (0.01) 0.00 (0.03) 0.01 (0.02) 0.00 (0.03) (0.01) OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT IN OUT IN OUT IN IN IN OUT IN IN IN OUT OUT OUT OUT OUT OUT OUT IN OUT OUT IN IN IN IN IN IN OUT IN Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Page 9 of 10
65. 27-May-19 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo No Name FBMKLCI 15-May Tel: +603-2167 9607 Total Money Flow (RM'mn) 16-May 17-May 21-May stsoo@ta.com.my 23-May 5D MF Total (A) Prv. Chg (B) Cur. Chg www.taonline.com.my 15-May 16-May CLOSING PRICE 17-May 21-May (A+B) 23-May Chg (12.5) 21.4 6.0 8.0 (22.1) 0.9 2.0 (30.1) 1,611 1,599 1,605 1,604 1,602 (1.87) DMF OUT 1 MAYBANK 2.0 (7.9) (2.2) 0.0 0.3 (7.7) 2.2 0.3 9.01 8.96 9.00 8.99 9.02 0.03 IN 2 PBBANK (8.4) 14.8 1.3 1.6 (6.4) 3.0 0.4 (8.0) 22.48 22.26 22.42 22.48 22.50 0.02 OUT 3 TENAGA 2.0 2.5 (0.0) 0.4 9.8 14.6 0.4 9.4 11.78 11.64 11.58 11.68 11.66 (0.02) IN 4 CIMB 0.2 (2.1) (0.2) 0.1 (3.2) (5.2) 0.3 (3.3) 5.13 5.13 5.16 5.14 5.15 0.01 OUT 5 PCHEM (0.1) 0.2 3.5 0.4 1.3 5.3 (3.1) 0.9 8.85 8.84 8.80 8.82 8.63 (0.19) OUT 6 IHH (0.4) 4.5 1.0 1.9 0.1 7.1 0.9 (1.8) 5.52 5.49 5.46 5.30 5.36 0.06 OUT 7 AXIATA (2.2) (2.5) (0.3) 0.2 (0.4) (5.2) 0.5 (0.6) 4.42 4.40 4.44 4.39 4.41 0.02 OUT 8 MAXIS (0.3) (0.4) (0.2) 0.2 (1.8) (2.5) 0.4 (2.0) 5.32 5.30 5.36 5.36 5.39 0.03 OUT 9 HLBANK (0.2) 0.0 0.7 (0.3) (9.4) (9.2) (1.0) (9.1) 19.40 19.28 19.30 19.24 19.30 0.06 OUT 10 SIME PLT (0.2) 0.4 (0.5) (1.2) (0.3) (2.0) (0.7) 0.9 4.69 4.64 4.68 4.68 4.66 (0.02) IN 11 DIGI 0.7 (2.6) (0.5) 0.1 (1.4) (3.7) 0.5 (1.4) 4.70 4.65 4.65 4.57 4.55 (0.02) OUT 12 NESTLE 1.3 (0.3) 0.7 0.3 1.2 3.1 (0.5) 0.9 145.60 145.30 145.50 146.30 146.90 0.60 IN 13 PETGAS (0.5) 3.1 (0.9) 0.2 (0.3) 1.8 1.1 (0.5) 16.64 16.64 16.62 16.52 16.30 (0.22) IN 14 GENTING (1.6) (0.5) (0.3) (0.2) (12.2) (14.8) 0.2 (12.1) 6.52 6.45 6.50 6.38 6.33 (0.05) OUT 15 MISC (0.1) (0.1) (0.1) (0.1) 0.2 (0.1) 0.0 0.2 6.55 6.53 6.57 6.55 6.54 (0.01) IN 16 IOI CORP (0.0) 0.0 0.4 0.2 (0.6) 0.0 (0.2) (0.8) 4.27 4.20 4.21 4.22 4.19 (0.03) OUT 17 GENM (0.0) 0.0 0.4 0.3 (0.9) (0.2) (0.1) (1.2) 3.12 3.12 3.14 3.07 3.13 0.06 OUT 18 KLK 0.2 0.1 0.4 0.1 (0.4) 0.4 (0.4) (0.4) 24.40 24.12 24.16 24.16 24.16 0.00 OUT 19 PETDAG 0.4 0.3 0.2 0.1 0.9 2.0 (0.1) 0.8 24.40 24.52 24.52 24.58 24.70 0.12 IN 20 HAP SENG (0.1) 0.4 0.5 0.4 0.1 1.2 (0.1) (0.3) 9.75 9.73 9.72 9.70 9.74 0.04 OUT 21 HLFG (5.3) 9.1 (0.1) (0.3) (0.3) 3.0 (0.2) 0.0 18.96 18.96 18.84 18.96 18.96 0.00 OUT 22 PPB 0.7 (0.2) (0.2) (0.6) (3.1) (3.4) (0.4) (2.5) 18.56 18.56 18.56 18.62 18.44 (0.18) OUT 23 TOP GLOVE 1.1 1.2 0.8 2.2 1.7 7.0 1.4 (0.5) 4.97 4.90 4.94 5.05 5.07 0.02 IN 24 RHBBANK (1.8) 1.5 0.5 1.6 1.0 2.8 1.1 (0.6) 5.76 5.73 5.74 5.88 5.70 (0.18) IN 25 PMETAL 0.1 (0.0) (0.2) (0.1) 0.0 (0.2) 0.1 0.1 4.30 4.25 4.30 4.26 4.33 0.07 IN 26 SIME 0.2 0.0 0.1 (0.4) 0.9 0.8 (0.5) 1.3 2.20 2.20 2.20 2.17 2.15 (0.02) IN 27 HARTALEGA 0.2 0.1 (0.3) (0.3) 0.8 0.4 (0.0) 1.1 5.26 5.10 5.10 5.20 5.16 (0.04) IN 28 AMBANK (0.1) (0.3) 0.3 0.2 (0.2) (0.0) (0.1) (0.4) 4.36 4.33 4.35 4.39 4.30 (0.09) OUT 29 DIALOG 0.2 0.6 1.3 0.7 (0.7) 2.2 (0.6) (1.4) 3.28 3.22 3.30 3.36 3.38 0.02 OUT 30 MAHB (0.5) (0.5) (0.1) 0.4 1.0 0.3 0.5 0.7 7.38 7.09 7.23 7.03 7.04 0.01 IN 9.3 (21.7) (12.5) 38.8 (17.4) 21.4 12.2 (6.2) 6.0 11.5 (3.5) 8.0 19.2 (41.3) (22.1) 91.0 (90.1) 0.9 13 (17) 18 (12) 15 (15) 21 (9) 14 (16) (RM'mn) INFLOW OUTFLOW NET FLOW Daily Trading Participation COMPANIES INFLOW OUTFLOW Date Retail Institution Foreign Total 15-May 16-May 17-May 21-May 23-May 21.1% 25.1% 21.3% 20.6% NA 47.4% 39.7% 40.7% 37.9% NA 31.5% 35.2% 38.0% 41.5% NA 100% 100% 100% 100% 0% Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Monday, May 27, 2019, 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 10 of 10
66. Technical View Monday , May 27, 2019 Weekly Ace Market Stock Watch Malaysia Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Weekly Ace Market Stock Watch is a compilation of selected stocks aimed at providing trading ideas and guide for momentum trading. The following table is derived from the 109 Ace Market counters currently listed in Bursa Malaysia. This recommendation is based on combination of fundamental and technical analysis. List of 20 Ace Market Stocks Name Current Closing EPS (RM) PE Ratio (%) Code 1 0169 SMTRACK [S] 11,728,636 0.155 46,000.00 1.30 0.11 -0.05 0.00 na 2 0092 MTOUCHE [S] 38,142,263 0.060 20,000.00 0.14 0.17 -0.01 0.00 na 3 0040 OPENSYS [S] 84,899,598 0.325 191,000.00 0.18 4 0133 SANICHI [S] 27,760,224 0.055 30,256,000.00 na 0.21 -0.04 0.01 5 0117 44,750,274 0.110 247,000.00 na 0.39 -0.01 -0.01 0.64 6 0105 ASIAPLY [S] 31,167,686 0.065 50,100.00 na 0.47 7 0070 MQTECH [S] 17,420,135 0.025 2,569,000.00 na 8 0072 AT [S] 23,204,165 0.040 9 0157 FOCUSP 33,000,000 10 0165 XOX [S] 11 Market Price (RM) Volume Price to Book No Operating Return on Revenue Net Income 2Q18 3Q18 2Q18 3Q18 2017 2018 2Q18 3Q18 2Q18 3Q18 2Q18 3Q18 2017 2018 0.38 -8.04 -3.87 11.39 na 1.39 20.37 19.11 10.49 10.90 16.26 17.14 6.72 na 12.87 -17.89 na na -30.93 -7.93 49.65 44.68 23.78 45.19 97.57 na 0.00 0.00 67.50 na 1.73 -4.28 0.28 -0.18 17.66 19.91 0.53 na 0.54 0.00 0.00 na na -22.18 -10.98 -5.22 -4.25 7.95 6.96 -3.09 na 700,000.00 0.46 0.64 0.00 0.00 na na -17.97 -18.74 -4.83 -5.61 3.51 5.22 -9.05 -5.63 0.430 52,200.00 na 0.65 0.00 0.01 na na 4.64 8.46 0.54 2.83 40.49 46.15 -0.46 na 54,619,709 0.050 605,000.00 0.59 0.68 0.00 0.00 35.00 na 3.73 -8.07 4.02 -1.00 51.61 52.53 2.03 -6.28 0160 HHHCORP [S] 26,664,106 0.090 175,000.00 0.69 0.00 0.00 45.65 na 8.49 14.17 0.78 na 12 0035 OPCOM [S] 96,749,962 0.600 292,900.00 0.68 0.70 -0.01 0.00 13.67 9.02 -6.93 1.62 2.13 1.54 23.41 27.48 7.20 6.68 13 0024 JAG [S] 60,589,244 0.045 4,281,300.00 na 0.72 0.00 0.00 14.71 na 3.89 8.35 na 14 0103 MNC 30,472,156 0.040 180,000.00 na 0.73 0.00 0.00 na -22.62 -15.55 -4.50 -4.99 4.35 3.75 -0.70 na 15 0153 OVERSEA 26,676,650 0.130 20,000.00 0.74 0.74 0.01 -0.01 128.95 na 8.51 -12.17 -0.98 -1.36 19.73 12.37 0.46 -4.79 16 0104 GENETEC [S] 67,092,564 1.420 6,000.00 0.75 -0.03 0.08 11.08 -3.46 11.52 -3.13 1.43 16.05 27.47 -4.03 3.66 17 0028 SCOPE [S] 70,060,554 0.200 10,000.00 0.68 0.77 18 0174 IDMENSN [S] 8,158,865 0.025 220,500.00 na 0.77 -0.07 0.00 19 0123 PRIVA [S] 27,910,001 0.060 120,000.00 na 0.77 0.00 0.00 20 0150 FINTEC 0.045 173,000.00 0.65 0.78 0.05 0.04 25.00 1.07 266.35 176.92 72.91 67.27 1.09 SMRT 30,225,609 na na 0.76 0.01 0.01 12.89 na na na na na -112.00 -47.69 -44.38 0.43 26.32 -78.64 12.64 na na na 6.93 na -123.84 17.77 -10.62 -9.90 9.40 0.00 0.00 27.16 51.92 9.22 5.89 1.84 2.17 8.67 1.29 2.66 1.40 36.69 36.97 4.71 2.46 2.22 5.53 4.14 4.49 1.44 na na -462.93 -24.61 -34.97 -37.71 15.92 4.02 na na na na -13.48 -0.59 -5.57 -5.18 15.35 13.72 -7.18 na 2.15 43.44 11.26 Source: Bloomberg This list is sorted first by the lowest price-to-book ratio from the 109 stocks listed in the Bursa Malaysia Ace Market sector which had reported third quarter results. INTERPRETATION OF FUNDAMENTAL INDICATORS: Price to Book: The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company's current market price to its book value. It is also sometimes known as a Market-to-Book ratio. The calculation can be performed in two ways, but the result should be the same each way. Earnings Per Share (EPS): The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. PE Ratio: The price-to-earnings ratio, or P/E ratio, is an equity valuation multiple. It is defined as market price per share divided by annual earnings per share. Revenue: The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income. Net Income: A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. Page 1 of 2
67. Support & Resistance – Ace Market No. Stock Stock Code Name SL S2 S1 17/May R1 R2 R3 Ratio 0169 SMTRACK [S] 0.07 0.10 0.12 0.145 0.18 0.20 0.23 1.40 1 Stop-loss Support 2 Support 1Current price Resistance 1 Resistance 2 Resistance 3 Reward RSI Volume (mn Shares) Stochastics today 5d-avg 20d-avg %K %D 4.247 4.739 4.559 42.9 66.7 83.3 56.70 2 0092 MTOUCHE [S] 0.03 0.04 0.05 0.060 0.09 0.11 0.12 3.00 46.80 3.620 1.123 1.087 50.0 3 0040 OPENSYS [S] 0.28 0.29 0.30 0.320 0.35 0.37 0.40 1.50 38.47 0.441 0.187 0.279 0.0 8.3 4 0133 SANICHI [S] 0.02 0.03 0.04 0.055 0.10 0.11 0.12 3.00 48.76 0.260 0.126 0.681 50.0 50.0 5 0117 SMRT 0.06 0.08 0.10 0.110 0.14 0.16 0.18 3.00 39.67 0.066 0.279 0.570 66.7 66.7 6 0105 ASIAPLY [S] 0.04 0.05 0.06 0.070 0.09 0.10 0.11 2.00 47.64 0.005 0.459 0.334 100.0 83.3 7 0070 MQTECH [S] 0.01 0.02 0.02 0.025 0.05 0.06 0.07 5.00 40.21 10.265 35.499 15.513 20.0 21.7 8 0072 AT [S] 0.01 0.02 0.03 0.050 0.08 0.09 0.10 1.50 47.65 1.106 0.311 0.432 50.0 83.3 72.2 9 0157 FOCUSP 0.31 0.34 0.36 0.435 0.46 0.48 0.51 0.33 69.16 0.746 0.306 0.342 100.0 10 0165 XOX [S] 0.02 0.03 0.04 0.050 0.08 0.09 0.10 3.00 46.14 0.565 2.587 1.334 0.0 0.0 11 0160 HHHCORP [S] 0.06 0.07 0.08 0.090 0.11 0.12 0.13 2.00 37.99 0.100 0.092 0.490 0.0 0.0 12 0035 OPCOM [S] 0.40 0.45 0.53 0.615 0.75 0.85 0.97 1.59 36.63 0.243 0.595 0.898 25.0 23.9 13 0024 JAG [S] 0.02 0.03 0.04 0.045 0.07 0.08 0.09 5.00 44.62 0.182 3.885 3.592 50.0 50.0 14 0103 MNC 0.01 0.02 0.03 0.035 0.06 0.07 0.08 5.00 44.32 0.058 0.861 0.678 0.0 16.7 15 0153 OVERSEA 0.07 0.08 0.10 0.115 0.17 0.19 0.21 3.67 43.77 0.020 0.008 0.005 25.0 63.9 16 0104 GENETEC [S] 1.29 1.36 1.44 1.470 1.60 1.70 1.77 4.33 30.35 0.022 0.030 0.051 8.3 25.0 17 0028 SCOPE [S] 0.15 0.17 0.19 0.215 0.25 0.27 0.29 1.40 47.45 0.206 0.215 1.053 75.0 66.7 18 0174 IDMENSN [S] 0.01 0.01 0.02 0.030 0.04 0.05 0.06 0.50 62.60 0.020 0.165 0.126 100.0 66.7 19 0123 PRIVA [S] 0.03 0.04 0.05 0.065 0.09 0.11 0.14 1.67 46.08 0.110 0.481 0.560 66.7 41.7 20 0150 FINTEC 0.02 0.03 0.04 0.045 0.07 0.09 0.11 5.00 38.12 0.017 1.258 1.237 0.0 0.0 No. Stock Stock Code Name SL S2 S1 24/May R1 R2 R3 Ratio 0169 SMTRACK [S] 0.07 0.10 0.12 0.155 0.18 0.20 0.23 0.71 2 0092 MTOUCHE [S] 0.03 0.04 0.05 0.060 0.09 0.11 0.12 3.00 46.80 5.034 1.018 1.323 50.0 50.0 3 0040 OPENSYS [S] 0.28 0.29 0.30 0.325 0.35 0.37 0.40 1.00 44.47 0.152 0.407 0.344 66.7 33.3 4 0133 SANICHI [S] 0.02 0.03 0.04 0.055 0.10 0.11 0.12 3.00 48.76 0.432 0.247 0.531 50.0 50.0 5 0117 SMRT 0.06 0.08 0.10 0.110 0.14 0.16 0.18 3.00 39.67 0.048 0.036 0.548 66.7 66.7 1 Stop-loss Support 2 Support 1Current price Resistance 1 Resistance 2 Resistance 3 Reward RSI 60.81 Volume (mn Shares) Stochastics today 5d-avg 20d-avg %K %D 12.045 6.350 60.0 45.6 4.455 6 0105 ASIAPLY [S] 0.03 0.04 0.05 0.065 0.08 0.09 0.10 1.00 39.72 1.277 0.205 0.332 50.0 50.0 7 0070 MQTECH [S] 0.01 0.02 0.02 0.025 0.05 0.06 0.07 5.00 41.54 2.798 16.776 15.653 20.0 26.7 8 0072 AT [S] 0.01 0.02 0.03 0.040 0.08 0.09 0.10 4.00 29.78 0.017 0.316 0.405 0.0 16.7 9 0157 FOCUSP 0.31 0.34 0.36 0.430 0.46 0.48 0.51 0.43 59.82 1.036 0.777 0.521 40.0 53.3 10 0165 XOX [S] 0.02 0.03 0.04 0.050 0.08 0.09 0.10 3.00 46.14 0.012 0.803 1.197 50.0 16.7 11 0160 HHHCORP [S] 0.06 0.07 0.08 0.090 0.11 0.12 0.13 2.00 37.99 0.061 0.072 0.133 33.3 11.1 12 0035 OPCOM [S] 0.40 0.45 0.53 0.600 0.75 0.85 0.97 2.14 32.37 0.652 0.448 0.829 0.0 3.0 13 0024 JAG [S] 0.01 0.02 0.03 0.045 0.06 0.07 0.08 1.00 44.62 0.733 0.833 3.537 50.0 50.0 14 0103 MNC 0.01 0.02 0.03 0.040 0.06 0.07 0.08 2.00 52.35 0.895 0.904 0.603 50.0 16.7 15 0153 OVERSEA 0.07 0.08 0.10 0.130 0.17 0.19 0.21 1.33 53.36 0.022 0.008 0.007 100.0 63.9 16 0104 GENETEC [S] 1.22 1.29 1.36 1.420 1.49 1.55 1.60 1.17 25.52 0.027 0.025 0.045 11.8 6.0 17 0028 SCOPE [S] 0.14 0.15 0.17 0.200 0.23 0.25 0.27 1.00 39.62 0.222 0.326 0.711 20.0 15.0 18 0174 IDMENSN [S] 0.01 0.01 0.02 0.025 0.04 0.05 0.06 2.00 46.87 0.588 0.314 0.175 50.0 83.3 19 0123 PRIVA [S] 0.03 0.04 0.05 0.060 0.09 0.11 0.14 3.00 39.71 0.145 0.128 0.511 50.0 38.9 20 0150 FINTEC 0.02 0.03 0.04 0.045 0.07 0.09 0.11 5.00 38.12 0.665 0.318 1.146 50.0 33.3 Sources: Bloomberg, TA Securities Legend: Reward Ratio = (R1 - CP)/ (CP - S1) Where CP = Current Price Upgrade in price levels shaded dark green and bold Downgrade in price levels lightly shaded RSI: The Relative Strength Index (RSI) is used to measure the velocity of a security's price movement to identify overbought and oversold conditions. RSI reading below 30 indicates an oversold condition, while RSI value greater than 70 indicates overbought condition. Stochastics: measures the velocity of a security's price movement to identify overbought and oversold conditions. The indicator measures current price relative to highs and lows over a time period. When Reward Ratio increase to > 1; RSI < 30 & Stochastics %K & %D < 30 = oversold; look to BUY When Reward Ratio decrease to < 1; RSI > 70 & Stochastics %K & %D > 70 = overbought; look to SELL Page 2 of 2
68. 3131 Technical View Monday , May 27, 2019 Weekly Small Cap Stock Watch Malaysia Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Weekly Small Cap Stock Watch is a compilation of selected stocks aimed at providing trading ideas and guide for momentum trading. The following is derived from the complete listing of Main Market stocks of more than 800 counters currently in Bursa Malaysia. This recommendation is based on combination of fundamental and technical analysis. List of 20 Small Cap Stocks Current Closing No Code Name Market Cap Price Volume Price to Book EPS (RM) PE Ratio (%) 2Q18 3Q18 2Q18 3Q18 2017 0.00 2018 18.56 na na 14.29 na na Operating Return on Revenu Net Income 2Q18 3Q18 2Q18 3Q18 2Q18 2017 2018 4.23 25.51 1.60 -0.22 3.19 -2.64 0.95 1 9091 EMICO [S] 15,827,876 0.165 100 0.44 0.10 0.00 0.29 -2.10 2 7139 NICE [S] 11,656,325 0.025 1,719,700 0.68 0.10 -0.01 -0.01 3 5073 NAIM [S] 104,255,360 0.750 323,600 na 0.12 0.04 0.13 4 6068 PCCS [S] 39,907,981 0.370 206,700 0.16 0.15 0.01 0.00 5 6807 PUNCAK [S] 145,355,521 0.330 69,700 na 0.15 -0.01 -0.06 na 6 7164 KNM [S] 175,957,949 0.200 8,136,400 na 0.16 -0.01 -0.01 na 7 7073 SEACERA [S] 73,467,773 0.210 121,900 na 0.16 -0.01 -0.05 35.38 na -92.10 -433.49 0.00 na -92.34 -212.66 -12.67 -16.09 3.86 12.81 -6.64 -0.82 93.77 -168.85 na 3.11 3.23 1.82 1.86 118.41 -9.24 4.76 na 5.64 -13.39 -6.13 -5.43 29.63 -201.28 na na -5.60 -0.53 -2.52 357.98 -42.45 na -2.36 8.92 na 44.40 26.42 10.91 -2.21 11.71 8 4057 ASIAPAC [S] 119,269,618 0.120 10,000 0.16 0.17 0.00 0.01 21.11 5.00 30.94 59.02 1.03 1.65 50.49 8.82 9 8893 MKLAND [S] 204,780,229 0.185 1,200 0.23 0.18 0.00 0.00 18.33 11.50 12.54 17.10 1.10 1.16 51.45 18.13 24.50 10 1643 LANDMRK 253,867,522 0.460 10,000 na 0.18 -0.01 -0.01 21.17 -29.83 11 5657 PARKSON [S] 261,465,556 0.245 24,800 0.28 0.19 -0.01 12 3905 MULPHA 568,651,267 2.160 47,600 na 0.19 0.36 13 8931 JERASIA [S] 28,716,140 0.375 213,400 0.22 0.21 0.01 0.05 14 3573 LIENHOE [S] 98,443,818 0.255 1,500 na 0.21 -0.02 -0.03 15 5156 XDL 216,586,004 0.080 7,200,000 na 0.23 0.00 0.00 16 4375 SMI [S] 32,540,717 0.150 10,000 na 0.24 -0.01 -0.01 17 8486 LIONFIB [S] 96,826,361 0.410 3,000 0.22 0.24 0.02 0.01 18 7382 GLBHD [S] 85,805,508 0.410 33,000 0.22 0.24 0.03 1,388,978,018 0.265 21,069,500 0.21 0.24 -0.03 -0.02 11.95 na 2.49 4.59 -0.69 129,267,677 1,966,000 0.27 0.25 0.01 7.85 10.35 10.19 na 19 3395 BJCORP 20 7126 LONBISC [S] 0.285 na na -22.01 -19.47 -0.99 -1.38 0.02 na na -0.25 2.47 -1.87 -1.34 1,046.31 -120.90 -99.44 -0.02 2.24 na 2.74 8.12 7.32 6.21 202.62 369.32 na 13.25 4.42 2.36 6.74 0.66 1.75 130.12 3.71 7.61 na na -69.81 -153.57 1.26 1.01 19.79 -2.42 na 37.77 na 7.54 8.17 1.31 1.31 139.59 16.59 na 1.48 na -20.23 -7.95 -1.55 -1.65 15.16 28.40 na 8.81 6.22 2.08 1.63 4.72 5.07 85.43 14.75 19.23 -0.04 49.59 na 422.24 -241.64 1.28 -0.15 1.10 2.63 0.01 na na -14.95 -1.24 2,457.51 149.29 -370.20 na 61.87 na 13.90 Source: Bloomberg This list is sorted first by the lowest price-to-book ratio from the Main Market which had reported third quarter results and excludes the FBM100 stocks. INTERPRETATION OF FUNDAMENTAL INDICATORS: Price to Book: The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company's current market price to its book value. It is also sometimes known as a Market-to-Book ratio. Earnings Per Share (EPS): The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. PE Ratio: The price-to-earnings ratio, or P/E ratio, is an equity valuation multiple. It is defined as market price per share divided by annual earnings per share. Revenue: The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income. Net Income: A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. Page 1 of 2
69. Support & Resistance – Small Cap No. Stock Stock Code Name SL S2 S1 17/May R1 R2 R3 Ratio 9091 EMICO [S] 0.12 0.13 0.14 0.165 0.20 0.22 0.25 1.40 1 Stop-loss Support 2 Support 1 Current price Resistance 1 Resistance 2 Resistance 3 Reward RSI Volume (mn Shares) 51.27 today 5d-avg 20d-avg 0.098 0.041 0.042 Stochastics %K %D 100.0 44.4 2 7139 NICE [S] 0.01 0.01 0.02 0.030 0.06 0.07 0.08 3.00 47.77 0.170 0.624 0.665 50.0 66.7 3 5073 NAIM [S] 0.66 0.74 0.81 0.930 1.04 1.18 1.30 0.92 34.65 1.277 2.309 3.531 24.3 26.4 4 6068 PCCS [S] 0.30 0.33 0.37 0.390 0.48 0.52 0.55 4.50 39.37 0.729 3.803 4.278 35.0 38.3 5 6807 PUNCAK [S] 0.30 0.31 0.34 0.345 0.38 0.40 0.42 7.00 34.38 0.175 0.169 0.242 0.0 12.5 6 7164 KNM [S] 0.12 0.14 0.16 0.190 0.21 0.24 0.30 0.67 58.44 30.440 21.848 37.652 71.4 44.0 7 7073 SEACERA [S] 0.10 0.12 0.15 0.220 0.24 0.29 0.33 0.29 40.70 10.645 9.203 23.241 54.5 62.9 8 4057 ASIAPAC [S] 0.10 0.11 0.12 0.125 0.14 0.15 0.17 3.00 43.59 0.636 1.043 2.972 0.0 11.1 9 8893 MKLAND [S] 0.13 0.15 0.16 0.180 0.21 0.22 0.23 1.50 41.43 0.230 0.308 0.718 0.0 16.7 10 1643 LANDMRK 0.38 0.42 0.44 0.455 0.50 0.52 0.57 3.00 44.93 0.110 0.179 0.115 28.6 23.8 11 5657 PARKSON [S] 0.18 0.20 0.22 0.255 0.29 0.32 0.38 1.00 51.76 3.417 1.067 0.706 75.0 80.6 12 3905 MULPHA 1.80 1.92 2.11 2.300 2.42 2.60 2.78 0.63 50.10 0.067 0.056 0.092 46.2 15.4 13 8931 JERASIA [S] 0.27 0.30 0.33 0.355 0.43 0.46 0.49 3.00 41.84 0.005 0.005 0.010 0.0 5.6 14 3573 LIENHOE [S] 0.22 0.23 0.24 0.260 0.29 0.32 0.35 1.50 44.62 0.001 0.051 0.027 66.7 50.0 15 5156 XDL 0.05 0.06 0.07 0.085 0.10 0.11 0.12 1.00 49.86 10.079 23.511 19.108 75.0 83.3 16 4375 SMI [S] 0.10 0.12 0.14 0.160 0.20 0.22 0.24 2.00 46.22 0.025 0.046 0.197 50.0 50.0 17 8486 LIONFIB [S] 0.30 0.35 0.40 0.465 0.52 0.58 0.62 0.85 55.22 0.000 0.003 0.005 100.0 66.7 18 7382 GLBHD [S] 0.30 0.32 0.34 0.415 0.44 0.48 0.52 0.33 57.01 0.010 0.002 0.011 72.7 63.1 19 3395 BJCORP 0.20 0.22 0.24 0.265 0.29 0.31 0.33 1.00 47.19 4.261 7.857 8.854 66.7 66.7 20 7126 LONBISC [S] 0.24 0.26 0.28 0.295 0.34 0.36 0.38 3.00 19.84 0.503 2.043 1.874 20.0 23.3 No. Stock Stock Code Name SL S2 S1 24/May R1 R2 R3 Ratio 9091 EMICO [S] 0.12 0.13 0.14 0.165 0.20 0.22 0.25 1.40 1 Stop-loss Support 2 Support 1 Current price Resistance 1 Resistance 2 Resistance 3 Reward RSI Volume (mn Shares) 51.27 today 5d-avg 20d-avg 0.020 0.034 0.038 Stochastics %K %D 100.0 77.8 16.7 2 7139 NICE [S] 0.01 0.01 0.02 0.025 0.05 0.06 0.07 5.00 40.36 0.200 0.880 0.506 0.0 3 5073 NAIM [S] 0.60 0.66 0.73 0.750 0.81 0.93 1.04 3.00 21.87 4.455 2.738 2.974 6.5 4.5 4 6068 PCCS [S] 0.27 0.30 0.33 0.370 0.42 0.48 0.56 1.25 37.62 1.195 1.712 3.833 17.6 12.5 5 6807 PUNCAK [S] 0.28 0.30 0.32 0.330 0.36 0.40 0.45 3.00 28.63 0.003 0.112 0.210 0.0 4.8 6 7164 KNM [S] 0.12 0.14 0.16 0.200 0.21 0.24 0.30 0.25 62.54 30.827 22.275 38.119 87.5 79.2 7 7073 SEACERA [S] 0.10 0.12 0.15 0.210 0.24 0.29 0.33 0.50 39.06 8.688 9.764 18.927 36.4 33.3 8 4057 ASIAPAC [S] 0.09 0.10 0.11 0.120 0.14 0.15 0.17 2.00 39.75 0.148 0.684 1.499 0.0 11.1 9 8893 MKLAND [S] 0.13 0.15 0.16 0.185 0.21 0.22 0.23 1.00 49.33 0.165 0.193 0.596 66.7 33.3 10 1643 LANDMRK 0.38 0.42 0.44 0.460 0.50 0.52 0.57 2.00 48.80 0.052 0.163 0.117 50.0 31.0 11 5657 PARKSON [S] 0.18 0.20 0.22 0.245 0.29 0.32 0.38 1.80 42.04 0.763 1.231 0.753 25.0 58.3 12 3905 MULPHA 1.80 1.92 2.11 2.160 2.42 2.60 2.78 5.20 38.18 0.107 0.062 0.084 0.0 5.6 13 8931 JERASIA [S] 0.27 0.30 0.33 0.375 0.43 0.46 0.49 1.22 49.17 0.005 0.002 0.008 44.4 14.8 14 3573 LIENHOE [S] 0.22 0.23 0.24 0.255 0.29 0.32 0.35 2.33 42.24 0.015 0.041 0.027 66.7 52.8 15 5156 XDL 0.05 0.06 0.07 0.080 0.10 0.11 0.12 2.00 45.03 8.111 18.634 17.775 50.0 58.3 16 4375 SMI [S] 0.10 0.12 0.14 0.150 0.20 0.22 0.24 5.00 38.35 0.029 0.100 0.186 0.0 0.0 17 8486 LIONFIB [S] 0.30 0.35 0.40 0.410 0.48 0.52 0.58 7.00 44.72 0.005 0.003 0.005 7.7 69.2 18 7382 GLBHD [S] 0.30 0.32 0.34 0.410 0.44 0.48 0.52 0.43 54.29 0.010 0.003 0.011 71.4 48.1 19 3395 BJCORP 0.20 0.22 0.24 0.265 0.29 0.31 0.33 1.00 48.34 7.838 5.174 8.653 66.7 55.6 20 7126 LONBISC [S] 0.21 0.24 0.27 0.285 0.32 0.34 0.36 2.33 17.05 0.415 1.088 1.821 11.1 11.2 Sources: Bloomberg, TA Securities Legend: Reward Ratio = (R1 - CP)/ (CP - S1) Where CP = Current Price Upgrade in price levels shaded dark green and bold Downgrade in price levels lightly shaded RSI: The Relative Strength Index (RSI) is used to measure the velocity of a security's price movement to identify overbought and oversold conditions. RSI reading below 30 indicates an oversold condition, while RSI value greater than 70 indicates overbought condition. Stochastics: measures the velocity of a security's price movement to identify overbought and oversold conditions. The indicator measures current price relative to highs and lows over a time period. When Reward Ratio increase to > 1; RSI < 30 & Stochastics %K & %D < 30 = oversold; look to BUY When Reward Ratio decrease to < 1; RSI > 70 & Stochastics %K & %D > 70 = overbought; look to SELL Page 2 of 2
70. Technical View Monday , May 27, 2019 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Stock Screen Malaysia End Day Census of 24.05.2019 Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Weekly 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 20 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band.This report also includes the top 20 overbought, and top 20 oversold stocks. *Note: To qualify in the list below, 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 daily charts to spot accumulation (volume growth) or breakout patterns. [MIDDLE BOLLINGER RANGEBOUND] List of 20 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 Stock Name NESTLE (MALAYSIA) BERHAD AYER HOLDINGS BHD PUBLIC BANK BERHAD KNUSFORD BHD SHANGRI-LA HOTELS (MAL) BHD ADVANCED PACKAGING TECH (M) PETRONAS DAGANGAN BHD ENRA GROUP BHD DIALOG GROUP BHD YNH PROPERTY BHD RIVERVIEW RUBBER ESTATES BHD CONCRETE ENGINEERING PRODS SPRITZER BHD VORTEX CONSOLIDATED BHD MILUX CORP BHD CENTRAL INDUSTRIAL CORP BHD MULTI-USAGE HOLDINGS BHD MALPAC HOLDINGS BERHAD UOA DEVELOPMENT BHD METROD HOLDINGS BHD Price 146.10 4.51 22.52 0.65 5.55 1.88 24.58 1.52 3.31 1.85 3.05 0.85 2.28 0.25 0.80 0.60 0.49 0.86 2.35 1.76 Bollinger Band Lower Middle Upper 143.86 145.99 148.12 4.08 4.47 4.86 22.24 22.47 22.69 0.37 0.60 0.82 5.36 5.52 5.68 1.76 1.87 1.98 23.90 24.29 24.68 1.26 1.43 1.60 3.05 3.22 3.39 1.49 1.71 1.93 2.83 2.97 3.12 0.60 0.75 0.91 2.14 2.24 2.34 0.13 0.22 0.31 0.64 0.74 0.85 0.43 0.53 0.64 0.41 0.47 0.53 0.77 0.84 0.90 2.22 2.31 2.39 1.53 1.67 1.80 RSI 14-day 50.50 46.71 46.34 55.12 52.03 47.54 53.23 53.44 57.55 68.40 53.51 61.55 55.81 59.89 58.45 55.21 53.16 48.37 62.57 59.79 5-day 145.92 4.61 22.43 0.65 5.52 1.94 24.54 1.48 3.31 1.83 3.00 0.73 2.26 0.29 0.81 0.58 0.47 0.84 2.32 1.74 Moving Average 10-day 30-day 145.57 146.07 4.52 4.54 22.39 22.51 0.67 0.54 5.55 5.51 1.89 1.90 24.41 24.48 1.50 1.40 3.21 3.20 1.78 1.59 2.97 3.00 0.70 0.78 2.27 2.21 0.25 0.20 0.79 0.73 0.57 0.54 0.47 0.46 0.84 0.88 2.32 2.26 1.72 1.67 50-day 146.30 4.81 22.97 0.58 5.55 1.94 24.68 1.52 3.20 1.42 3.02 0.82 2.18 0.19 0.72 0.61 0.46 0.93 2.22 1.69 Vol 112,500 1,200 6,866,700 22,500 302,300 1,000 693,900 18,500 10,084,600 5,478,300 6,000 1,000 11,200 84,472,100 13,100 2,800 7,000 600 529,000 2,000 20-day avg vol 82,225 260 4,947,750 10,825 176,140 390 502,315 2,890 8,893,005 4,471,075 2,450 150 8,720 17,864,020 11,720 70 1,150 30 284,875 735 Raw data sourced from Bloomberg 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 3
71. *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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stock Name LII HEN INDUSTRIES BHD MUAR BAN LEE GROUP BHD MCLEAN TECHNOLOGIES BHD SARAWAK CONSOLIDATED INDUSTR KUMPULAN POWERNET BHD D'NONCE TECHNOLOGY BHD J IANKUN INTERNATIONAL BHD POH KONG HOLDINGS BHD GPA HOLDINGS BHD KOSSAN RUBBER INDUSTRIES EKA NOODLES BHD WHITE HORSE BHD COMPUGATES HOLDINGS BHD D.B.E. GURNEY RESOURCES BHD SCH GROUP BHD AMCORP PROPERTIES BHD IGB REAL ESTATE INVESTMENT T OVERSEA ENTERPRISE BHD AMTEL HOLDINGS BHD TA WIN HOLDINGS BHD Price 2.84 1.37 0.15 0.74 0.59 0.48 0.35 0.50 0.14 3.82 0.07 1.20 0.03 0.04 0.13 0.58 1.89 0.13 0.67 0.54 Bollinger Band Lower Middle 2.52 2.66 1.17 1.25 0.07 0.09 0.55 0.63 0.21 0.39 0.41 0.44 0.28 0.31 0.47 0.48 0.10 0.12 3.61 3.71 0.05 0.06 1.14 1.17 0.02 0.03 0.03 0.03 0.11 0.12 0.56 0.57 1.85 1.87 0.11 0.12 0.65 0.66 0.50 0.52 Upper 2.81 1.34 0.12 0.71 0.57 0.47 0.34 0.49 0.13 3.82 0.06 1.20 0.03 0.03 0.13 0.58 1.89 0.13 0.67 0.54 RSI 14-day 67.76 70.37 76.16 73.66 73.35 64.15 58.66 60.70 85.72 65.45 59.97 57.18 62.09 60.73 59.80 61.89 59.26 53.36 65.27 56.72 Moving Average 5-day 2.74 1.29 0.10 0.67 0.49 0.45 0.31 0.48 0.12 3.76 0.06 1.18 0.03 0.03 0.12 0.57 1.87 0.12 0.66 0.52 10-day 2.68 1.25 0.10 0.65 0.43 0.44 0.31 0.48 0.12 3.72 0.06 1.18 0.03 0.03 0.12 0.57 1.87 0.12 0.66 0.52 30-day 2.65 1.25 0.10 0.61 0.36 0.44 0.31 0.48 0.11 3.64 0.06 1.14 0.03 0.03 0.12 0.56 1.87 0.12 0.66 0.53 50-day 2.67 1.24 0.11 0.60 0.39 0.45 0.31 0.48 0.11 3.61 0.06 1.20 0.03 0.03 0.12 0.55 1.85 0.13 0.65 0.53 Vol 1,189,300 1,046,300 101,200 856,700 81,100 764,300 20,100 135,000 7,014,000 927,900 150,000 100,900 6,568,500 2,681,600 14,370,200 31,000 280,700 22,000 20,000 378,500 20-day avg vol 242,830 259,500 28,155 886,215 84,350 212,345 16,170 68,020 1,315,185 1,018,230 136,395 6,675 3,893,440 1,695,050 681,730 71,330 1,240,815 7,125 470 372,485 Raw data sourced from Bloomberg *Note: As for the top 20 breakdown list below, te sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No Stock Name 1 MALAYSIAN PACIFIC INDUSTRIES 2 POS MALAYSIA BERHAD 3 GHL SYSTEMS BERHAD 4 SCICOM (MSC) BHD 5 LTKM BHD 6 UMW HOLDINGS BHD 7 KESM INDUSTRIES BHD 8 IQ GROUP HOLDINGS BHD 9 J F TECHNOLOGY BHD 10 UNISEM (M) BERHAD 11 SAM ENGINEERING & EQUIPMENT 12 NAIM HOLDINGS BERHAD 13 CARIMIN PETROLEUM BHD 14 DAMANSARA REALTY BHD 15 DAYANG ENTERPRISE HLDGS BHD 16 MMS VENTURES BHD 17 HIL INDUSTRIES BERHAD 18 VISDYNAMICS HOLDINGS BHD 19 SCGM BHD 20 WATTA HOLDING BHD Raw data sourced from Bloomberg Price 8.80 1.29 1.46 0.84 0.98 5.25 7.35 0.98 0.81 2.38 7.90 0.75 0.64 0.36 0.92 0.68 0.53 0.31 0.87 0.71 Bollinger Band Lower Middle Upper 8.94 9.70 10.46 1.41 1.73 2.05 1.53 1.64 1.76 0.90 1.01 1.13 1.03 1.18 1.32 5.30 5.47 5.64 7.39 7.68 7.97 1.02 1.12 1.23 0.84 0.90 0.96 2.41 2.59 2.77 7.93 8.15 8.37 0.78 0.99 1.21 0.66 0.83 0.99 0.38 0.44 0.50 0.94 1.27 1.60 0.70 0.78 0.86 0.55 0.57 0.60 0.33 0.39 0.45 0.89 0.96 1.03 0.72 0.78 0.84 RSI 14-day 22.05 12.42 11.91 28.32 27.91 27.26 24.15 30.73 27.64 32.79 42.06 21.87 24.31 25.66 24.37 19.37 27.80 22.36 27.22 34.98 Page 2 of 3 5-day 9.32 1.58 1.60 1.00 1.19 5.42 7.56 1.11 0.89 2.60 8.09 0.89 0.76 0.42 1.10 0.74 0.58 0.37 0.93 0.77 Moving Average 10-day 30-day 50-day 9.56 9.78 9.81 1.66 1.79 1.83 1.63 1.67 1.67 1.01 1.01 1.05 1.21 1.17 1.19 5.44 5.52 5.61 7.61 7.75 8.06 1.13 1.13 1.17 0.90 0.90 0.88 2.65 2.58 2.60 8.12 8.13 8.00 0.94 1.05 1.09 0.78 0.86 0.86 0.43 0.46 0.48 1.18 1.34 1.39 0.76 0.80 0.85 0.58 0.58 0.58 0.38 0.40 0.43 0.95 0.98 1.03 0.78 0.79 0.81 Vol 40,500 5,093,200 591,200 2,066,000 77,500 371,600 27,500 11,100 100,000 343,500 59,000 4,454,800 9,855,100 459,100 34,109,500 218,600 289,200 1,698,600 156,400 437,900 20-day avg vol 109,865 997,230 365,620 591,300 105,545 654,655 32,300 13,045 85,495 72,065 54,590 2,974,095 4,101,150 408,165 21,876,060 124,945 75,030 509,540 213,010 91,020
72. *Note: The list below is the 20 most overbought of the 1000 over Bursa Malaysia listed stocks with 14-day RSI above 80. It is generally a bearish or SELL list, especially if the readings approach 90. Caveat: The list consists of fundamentally sound stocks, and hence are long-term BUY or HOLD stocks. TOP 20 OVERBOUGHT STOCKS (Generally BEARISH short-term, but are LONG-TERM BUY or HOLD) No Stock Name 1 GPA HOLDINGS BHD 2 LAFARGE MALAYSIA BHD 3 YEE LEE CORPORATION 4 MCLEAN TECHNOLOGIES BHD 5 SARAWAK CONSOLIDATED INDUSTR 6 KUMPULAN POWERNET BHD 7 SYARIKAT TAKAFUL MALAYSIA KE 8 MUAR BAN LEE GROUP BHD 9 SUIWAH CORP BHD 10 YNH PROPERTY BHD 11 LII HEN INDUSTRIES BHD 12 MALAYAN UNITED INDUSTRIES BH 13 7-ELEVEN MALAYSIA HOLDINGS B 14 KOSSAN RUBBER INDUSTRIES 15 AMTEL HOLDINGS BHD 16 HONG LEONG INDUSTRIES BHD 17 SAPURA RESOURCES BHD 18 D'NONCE TECHNOLOGY BHD 19 OCR GROUP BERHAD 20 UOA DEVELOPMENT BHD Raw data sourced from Bloomberg Bollinger Band Price 0.14 3.74 2.33 0.15 0.74 0.59 6.10 1.37 2.78 1.85 2.84 0.20 1.49 3.82 0.67 10.86 0.69 0.48 0.34 2.35 RSI Lower Middle Upper 14-day 0.10 0.12 0.13 85.72 3.12 3.59 4.07 84.70 1.99 2.27 2.55 81.63 0.07 0.09 0.12 76.16 0.55 0.63 0.71 73.66 0.21 0.39 0.57 73.35 5.74 6.04 6.33 70.86 1.17 1.25 1.34 70.37 2.74 2.76 2.78 69.28 1.49 1.71 1.93 68.40 2.52 2.66 2.81 67.76 0.17 0.19 0.20 66.01 1.44 1.47 1.50 65.83 3.61 3.71 3.82 65.45 0.65 0.66 0.67 65.27 10.37 10.64 10.90 64.30 0.57 0.64 0.70 64.29 0.41 0.44 0.47 64.15 0.30 0.32 0.35 62.73 2.22 2.31 2.39 62.57 Moving Average 5-day 10-day 30-day 50-day 0.12 0.12 0.11 0.11 3.73 3.73 3.18 2.86 2.33 2.33 2.13 2.04 0.10 0.10 0.10 0.11 0.67 0.65 0.61 0.60 0.49 0.43 0.36 0.39 6.08 6.11 5.76 5.38 1.29 1.25 1.25 1.24 2.76 2.76 2.74 2.72 1.83 1.78 1.59 1.42 2.74 2.68 2.65 2.67 0.19 0.19 0.18 0.18 1.49 1.48 1.46 1.45 3.76 3.72 3.64 3.61 0.66 0.66 0.66 0.65 10.80 10.69 10.57 10.33 0.65 0.65 0.62 0.63 0.45 0.44 0.44 0.45 0.34 0.32 0.31 0.29 2.32 2.32 2.26 2.22 Vol 7,014,000 356,700 312,700 101,200 856,700 81,100 105,500 1,046,300 20,400 5,478,300 1,189,300 2,876,600 45,300 927,900 20,000 400 10,100 764,300 7,489,400 529,000 20-day avg vol 1,315,185 5,358,885 463,670 28,155 886,215 84,350 1,347,800 259,500 40,615 4,471,075 242,830 3,592,855 69,026 1,018,230 470 41,090 35,165 212,345 1,826,655 284,875 *Note: The list below is the 20 of the most oversold of the 1000 over Bursa Malaysia listed stocks with 14-day RSI close to and below 30, the level below which is considered oversold. It is generally a short-term bullish or BUY list for technical rebound gains, especially if the readings are below 20. Caveat: The list consists of fundamentally weak stocks, and hence could be an AVOID list. TOP 20 OVERSOLD STOCKS (Generally BULLISH short-term, but AVOID fundamentally weak stocks) No Stock Name 1 PRG HOLDINGS BHD 2 GHL SYSTEMS BERHAD 3 POS MALAYSIA BERHAD 4 LONDON BISCUITS BHD 5 ELSOFT RESEARCH BHD 6 LPI CAPITAL BERHAD 7 MERGE ENERGY BHD 8 AEMULUS HOLDINGS BHD 9 ECO WORLD INTERNATIONAL BHD 10 O.S.K. HOLDINGS BHD 11 MMS VENTURES BHD 12 BURSA MALAYSIA BHD 13 OCK GROUP BHD 14 SIME DARBY PLANTATION BHD 15 TECHFAST HOLDINGS BHD 16 MEGA FIRST CORP BHD 17 KUB MALAYSIA BHD 18 EVERGREEN FIBREBOARD BHD 19 BARAKAH OFFSHORE PETROLEUM 20 HUA YANG BHD Raw data sourced from Bloomberg Price 0.70 1.46 1.29 0.29 0.79 15.02 1.23 0.20 0.67 0.88 0.68 6.08 0.42 4.53 0.26 3.33 0.31 0.33 0.04 0.34 Bollinger Band RSI Lower Middle Upper 14-day 0.70 0.71 0.73 10.02 1.53 1.64 1.76 11.91 1.41 1.73 2.05 12.42 0.28 0.31 0.35 17.05 0.76 0.90 1.04 17.10 14.80 15.27 15.73 17.21 1.17 1.58 2.00 17.55 0.19 0.22 0.24 17.99 0.67 0.70 0.73 18.26 0.87 0.94 1.02 18.70 0.70 0.78 0.86 19.37 5.81 6.43 7.05 19.48 0.40 0.48 0.56 20.20 4.50 4.92 5.35 20.46 0.26 0.29 0.32 20.61 3.28 3.64 4.00 20.84 0.32 0.38 0.43 21.01 0.32 0.36 0.39 21.03 0.06 0.09 0.12 21.38 0.34 0.37 0.40 21.86 Moving Average 5-day 10-day 30-day 50-day 0.71 0.71 0.72 0.73 1.60 1.63 1.67 1.67 1.58 1.66 1.79 1.83 0.29 0.30 0.33 0.36 0.82 0.85 0.93 0.96 15.00 15.09 15.41 15.64 1.34 1.45 1.65 1.59 0.20 0.21 0.22 0.23 0.69 0.70 0.71 0.73 0.91 0.92 0.96 0.96 0.74 0.76 0.80 0.85 6.13 6.19 6.60 6.71 0.44 0.46 0.51 0.54 4.67 4.80 5.00 5.03 0.27 0.28 0.30 0.31 3.44 3.52 3.71 3.76 0.35 0.36 0.39 0.40 0.34 0.35 0.37 0.37 0.08 0.08 0.09 0.10 0.35 0.36 0.37 0.38 Vol 91,000 591,200 5,093,200 415,100 633,200 9,900 21,000 72,900 562,700 2,591,500 218,600 2,117,600 1,470,800 3,096,800 270,800 401,100 670,600 495,600 30,196,300 400,700 20-day avg vol 128,130 365,620 997,230 1,820,915 784,925 39,085 68,670 645,345 278,875 826,315 124,945 1,030,135 3,007,230 2,870,905 370,465 389,795 1,394,100 1,968,690 32,417,220 433,530 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 Monday, May 27, 2019, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
73. Monday , 27 May, 2019 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only Fo re i gn Te ch n ic al R e p o rt s 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 ) 4. Fore i gn Te ch n i ca l St o c k W at ch ( U S) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. 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
74. Technical View Monday , May 27, 2019 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Technical Stock Watch Australia Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my WESTPAC BANKING AUD28.12 BOLLINGER BANDS Upper Middle Lower AUD AUD AUD SIMPLE MOVING AVERAGES 28.88 27.34 25.80 10-day 30-day 50-day AUD AUD AUD BUY Recent Signal DMI 27.26 27.03 26.73 DAILY MACD Recent Signal BOLLINGER BANDS AUD AUD AUD BUY AUD25.81 NATIONAL AUSTRALIA BANK Upper Middle Lower www.taonline.com.my SIMPLE MOVING AVERAGES 26.81 25.45 24.09 10-day 30-day 50-day BUY Recent Signal AUD AUD AUD 25.20 25.29 25.21 DMI Recent Signal BUY Page 1 of 5
75. 27-May-19 FORTESCUE METALS GROUP AUD8 .22 BOLLINGER BANDS Upper Middle Lower AUD AUD AUD SIMPLE MOVING AVERAGES 8.71 7.36 6.02 10-day 30-day 50-day AUD AUD AUD BUY Recent Signal DMI 7.90 7.36 7.02 DAILY MACD Recent Signal STOCKLAND BUY AUD4.45 BOLLINGER BANDS SIMPLE MOVING AVERAGES Upper AUD 4.34 10-day AUD 4.05 Middle Lower AUD AUD 3.92 3.50 30-day 50-day AUD AUD 3.91 3.88 BUY Recent Signal DMI Recent Signal DAILY MACD BUY Page 2 of 5
76. 27-May-19 WEEKLY FOREIGN STOCK WATCH UPDATE The table below consists of the top 30 ASX 200 Index component stocks , weighted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last two columns are auto generated. Name ASX 200 BHP BILLITON RIO TINTO COMMONW BK AUSTR WESTPAC BANKING AUST AND NZ BANK NATL AUST BANK WESFARMERS WOODSIDE PETRO NEWCREST MINING FORTESCUE METALS QBE INSURANCE ORIGIN ENERGY AMP SANTOS MACQUARIE GROUP SUNCORP GROUP ORICA OIL SEARCH COCA-COLA AMATIL AMCOR STOCKLAND ALUMINA COMPUTERSHARE QANTAS AIR WAYS SIMS METAL MGMT Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD Change High Low 24-May Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal 6456.00 -35.79 6491.80 6437.30 6195.07 6353.45 6511.84 67.74 6380.44 6323.70 6268.68 33.76 17.73 21.49 16.03 56.40 37.61 18.792 BUY BUY 37.45 101.25 78.18 28.12 27.84 25.81 37.63 35.70 26.78 8.22 12.64 7.51 2.17 6.98 120.77 13.90 20.66 7.37 9.71 16.25 4.45 2.41 16.62 5.51 9.61 0.13 0.27 0.03 -0.04 -0.10 0.03 -0.07 -1.29 -0.08 -0.13 -0.27 -0.21 -0.02 -0.23 -0.94 -0.16 -0.17 -0.21 0.20 -0.13 0.02 -0.06 -0.15 0.05 -0.04 37.51 101.59 78.18 28.21 27.87 25.81 37.70 36.20 27.20 8.30 12.89 7.60 2.19 7.00 121.71 14.02 20.73 7.44 9.72 16.32 4.46 2.45 16.71 5.52 9.69 37.00 99.80 77.31 27.81 27.62 25.48 37.40 35.61 26.76 8.17 12.59 7.43 2.16 6.91 120.47 13.82 20.52 7.35 9.54 16.13 4.42 2.37 16.57 5.46 9.46 36.37 92.09 71.45 25.80 25.92 24.09 35.33 34.27 24.12 6.02 12.51 7.19 2.14 6.78 113.41 13.19 17.85 7.31 8.52 15.96 3.50 2.12 16.69 5.18 9.19 37.38 97.47 75.18 27.34 27.31 25.45 36.31 35.95 25.72 7.36 12.82 7.58 2.23 7.13 125.68 13.66 19.49 7.65 9.02 16.30 3.92 2.30 17.77 5.49 9.89 38.39 102.84 78.91 28.88 28.71 26.81 37.28 37.63 27.33 8.71 13.12 7.97 2.32 7.47 137.94 14.12 21.12 7.99 9.52 16.65 4.34 2.49 18.84 5.80 10.60 45.92 61.29 65.93 58.71 57.43 55.35 71.93 61.42 67.09 68.75 58.68 55.83 45.48 54.51 39.37 64.18 74.97 43.14 74.50 59.04 81.63 61.04 38.56 48.11 39.36 37.50 99.28 75.37 27.26 27.14 25.20 36.65 36.59 26.41 7.90 12.71 7.67 2.21 7.19 120.91 13.82 20.20 7.60 9.19 16.42 4.05 2.38 17.50 5.36 9.63 37.95 37.98 23.98 29.14 22.02 (5.16) 98.25 97.13 31.04 23.24 19.57 7.81 74.25 73.12 41.53 13.95 30.96 27.58 27.03 26.73 38.82 25.97 23.13 12.85 26.99 26.71 35.27 21.21 25.03 14.06 25.29 25.21 35.50 26.08 24.61 9.42 35.81 35.30 34.86 12.61 26.87 22.24 35.88 35.48 35.70 21.78 15.17 13.92 25.56 25.43 30.43 15.79 20.24 14.64 7.36 7.02 47.26 18.44 30.07 28.82 12.77 12.62 21.83 21.24 11.04 0.60 7.50 7.40 35.70 25.96 15.30 9.74 2.23 2.22 21.01 23.03 11.69 (2.01) 7.13 7.05 31.12 27.33 14.79 3.79 128.00 128.22 18.13 33.66 32.09 (15.52) 13.58 13.52 33.77 17.04 19.46 16.73 19.18 18.76 36.79 14.03 33.91 22.76 7.79 7.87 20.27 30.69 21.13 (10.42) 8.87 8.71 28.64 17.93 15.66 10.71 16.05 15.70 26.28 15.74 35.44 10.55 3.91 3.88 51.52 10.17 29.92 41.35 2.34 2.42 31.75 19.11 21.89 12.65 17.73 17.54 18.84 31.37 16.15 (12.53) 5.55 5.58 22.35 25.45 14.39 (3.10) 10.06 10.42 18.68 29.64 23.49 (10.96) -0.07 1.24 1.17 0.30 0.27 0.09 0.54 0.48 0.47 0.40 0.05 0.12 -0.01 0.07 -2.56 0.15 0.59 -0.07 0.21 0.23 0.12 0.01 -0.18 -0.07 -0.24 -0.16 0.68 0.74 0.17 0.16 0.03 0.47 0.32 0.31 0.28 0.05 0.09 -0.01 0.05 -2.35 0.09 0.46 -0.10 0.16 0.25 0.05 -0.02 -0.01 -0.07 -0.26 0.093 0.554 0.428 0.135 0.108 0.065 0.068 0.161 0.153 0.122 (0.004) 0.029 0.000 0.024 (0.216) 0.053 0.130 0.022 0.054 (0.022) 0.068 0.030 (0.171) (0.001) 0.026 SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY SELL BUY BUY SELL BUY BUY BUY BUY SELL SELL SELL BUY BUY BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY SELL BUY BUY BUY BUY SELL BUY BUY SELL SELL BUY 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 3 of 5
77. 27-May-19 Fundamentals of Foreign Technical Picks Bloomberg Stock Name Ticker BHP AU BHP BILLITON LTD RIO AU RIO TINTO LTD CBA AU COMMONW BK AUS TR WBC AU WES TPAC BANKING ANZ AU AUS T AND NZ BANK NAB AU NATL AUS T BANK WES AU WES FARMERS LTD WPL AU WOODS IDE PETRO NCM AU NEWCRES T MINING FMG AU FORTES CUE METALS QBE AU QBE INS URANCE ORG AU ORIGIN ENERGY AMP AU AMP LTD S TO AU S ANTOS LTD MQG AU MACQUARIE GROUP S UN AU S UNCORP GROUP LT ORI AU ORICA LTD OS H AU OIL S EARCH LTD CCL AU COCA-COLA AMATIL AMC AU AMCOR LTD S GP AU S TOCKLAND AWC AU ALUMINA LTD CPU AU COMPUTERS HARE LT QAN AU QANTAS AIRWAYS S GM AU S IMS METAL MGMT EPS ($) Div Yield(%) PER(x) 52week Price Close Target % upside Price 2018 2019 2018 2019 2018 2019 High Low % Chg YTD 37.45 101.25 78.18 28.12 27.84 25.81 37.63 35.70 26.78 8.22 12.64 7.51 2.17 6.98 120.77 13.90 20.66 7.37 9.71 16.25 4.45 2.41 16.62 5.51 9.61 36.89 92.67 71.47 27.73 28.02 27.43 32.40 37.90 24.83 7.51 12.66 8.46 2.07 7.58 133.12 14.37 18.52 8.69 8.34 15.38 4.09 2.55 18.05 6.29 10.91 1.93 6.18 4.75 2.08 2.36 2.13 1.89 1.83 0.76 0.79 0.63 0.64 0.19 0.41 8.68 0.78 0.95 0.33 0.52 0.63 0.35 0.17 0.74 0.59 0.80 2.11 5.55 5.07 2.27 2.35 2.26 1.81 1.86 0.93 0.87 0.72 0.63 0.19 0.45 9.03 0.95 1.08 0.35 0.54 0.69 0.35 0.15 0.75 0.66 0.88 13.4 11.3 16.5 13.6 11.8 12.1 19.9 13.4 24.4 7.2 13.9 11.8 11.7 11.9 13.9 17.7 21.8 15.6 18.8 17.8 12.6 9.6 15.6 9.3 12.0 12.3 12.6 15.4 12.4 11.9 11.4 20.8 13.3 19.9 6.5 12.1 11.9 11.6 10.8 13.4 14.7 19.1 14.4 18.0 16.4 12.6 11.2 15.4 8.3 10.9 6.190 4.094 5.272 6.686 5.765 6.432 7.119 4.126 0.758 7.713 3.236 2.690 6.267 1.547 4.948 5.273 2.594 2.117 4.645 2.868 6.225 6.266 2.064 4.283 4.568 4.433 3.458 5.267 6.547 5.866 6.470 4.162 4.092 0.829 6.691 3.718 4.581 6.359 1.547 5.135 5.691 2.982 2.280 4.737 3.040 6.315 6.100 2.226 4.773 4.329 40.13 102.83 79.79 30.44 30.39 29.00 37.70 39.38 27.20 8.72 13.16 10.27 3.96 7.49 136.84 15.78 20.86 9.27 10.50 16.67 4.46 3.20 20.80 6.92 17.94 29.05 66.91 65.23 23.30 22.98 22.52 29.51 29.33 18.57 3.22 9.28 6.03 2.07 5.14 103.30 12.05 16.02 6.70 7.88 12.67 3.42 2.12 16.24 5.18 8.91 14.13 33.85 8.00 12.30 13.82 7.23 20.31 13.98 22.84 113.99 25.15 16.07 -11.43 27.37 11.16 10.70 19.77 2.93 18.56 22.64 26.42 4.78 -3.32 -4.84 -4.28 -2% -9% -9% -1% 1% 6% -16% 6% -8% -9% 0% 11% -5% 8% 9% 3% -12% 15% -16% -6% -9% 6% 8% 12% 12% Note: The above data is based on Bloomberg consensus Page 4 of 5
78. 27-May-19 LIST OF RECOMMENDED BUY STOCKS FROM JANUARY 2018 TO CURRENT Stock ALUMINA AMCOR LTD AMCOR LTD AMP LTD COMPUTERSHARE FORTESCUE MACQUARIE NATIONAL AUSTRALIA BANK NATIONAL AUSTRALIA BANK OIL SEARCH OIL SEARCH OIL SEARCH OIL SEARCH OIL SEARCH ORIGIN ENERGY ORIGIN ENERGY ORIGIN ENERGY QANTAS AIRWAYS QANTAS AIRWAYS QANTAS AIRWAYS QBE INSURANCE QBE INSURANCE QBE INSURANCE RIO TINTO RIO TINTO STOCKLAND SUNCORP GROUP WESTPAC BANKING WOODSIDE WOODSIDE WOODSIDE REC BUY Date Price 7 /May/19 2.16 10/Aug/18 14.12 9/Oct/18 13.40 30/Apr/19 2.28 18/Apr/19 17.80 7/Mar/18 4.81 16/Jan/19 114.98 20/Jul/18 28.12 27/Mar/19 24.92 19/Apr/18 7.77 26/Aug/18 8.52 23/Nov/18 7.35 15/Feb/19 8.02 24/Apr/19 8.20 17/Apr/18 9.23 13/Dec/18 7.11 15/Mar/19 7.27 16/Mar/18 5.99 3/Oct/18 5.67 10/May/19 5.55 24/Jan/18 10.43 24/Jul/18 9.89 8/Jan/19 10.23 29/Aug/18 73.40 7/Dec/18 72.21 16/Jan/18 4.28 31/May/18 13.46 5/Apr/18 28.77 12/Apr/18 30.44 23/Oct/18 34.30 20/Mar/19 35.45 Total funds invested * Total unrealised profit Return 24-May-19 Price 2.41 16.25 16.25 2.17 16.62 8.22 120.77 25.81 25.81 7.37 7.37 7.37 7.37 7.37 7.51 7.51 7.51 5.51 5.51 5.51 12.64 12.64 12.64 101.25 101.25 4.45 13.90 28.12 35.70 35.70 35.70 Change (+/-) 0.25 2.13 2.85 (0.11) (1.18) 3.41 5.79 (2.31) 0.89 (0.40) (1.15) 0.02 (0.65) (0.83) (1.72) 0.40 0.24 (0.48) (0.16) (0.04) 2.21 2.75 2.41 27.85 29.04 0.17 0.44 (0.65) 5.26 1.40 0.25 pct ST 11.57 15.08 21.27 (4.82) (6.63) 70.89 5.04 (8.21) 3.57 (5.15) (13.50) 0.27 (8.10) (10.12) (18.63) 5.63 3.30 (8.01) (2.82) (0.72) 21.19 27.81 23.56 37.94 40.22 3.97 3.27 (2.26) 17.28 4.08 0.71 626,130 78,080 12.47% Upside Targets MT LT 2.60 2.83 3.20 16.43 17.31 17.86 16.43 17.31 17.86 2.34 2.53 2.82 19.60 20.79 22.03 8.80 9.30 10.10 137.66 142.49 146.39 27.25 28.56 29.62 27.25 28.56 29.62 8.52 9.26 10.00 8.52 9.26 10.00 8.52 9.26 10.00 8.52 9.26 10.00 8.52 9.26 10.00 7.76 8.23 8.71 7.76 8.23 8.71 7.76 8.23 8.71 6.19 6.92 7.64 6.19 6.92 7.64 6.19 6.92 7.64 13.62 14.65 15.30 13.62 14.65 15.30 13.62 14.65 15.30 103.01 108.72 113.34 103.01 108.72 113.34 4.61 4.98 5.34 14.09 14.77 15.87 29.48 31.40 33.31 39.39 41.99 43.58 39.39 41.99 43.58 39.39 41.99 43.58 ST 7.88 1.11 1.11 7.83 17.93 7.06 13.99 5.58 5.58 15.60 15.60 15.60 15.60 15.60 3.33 3.33 3.33 12.34 12.34 12.34 7.75 7.75 7.75 1.74 1.74 3.60 1.37 4.84 10.34 10.34 10.34 % Upside MT 17.43 6.52 6.52 16.59 25.09 13.14 17.98 10.65 10.65 25.64 25.64 25.64 25.64 25.64 9.59 9.59 9.59 25.59 25.59 25.59 15.90 15.90 15.90 7.38 7.38 11.91 6.26 11.66 17.62 17.62 17.62 LT 32.78 9.91 9.91 29.95 32.55 22.87 21.21 14.76 14.76 35.69 35.69 35.69 35.69 35.69 15.98 15.98 15.98 38.66 38.66 38.66 21.04 21.04 21.04 11.94 11.94 20.00 14.17 18.46 22.07 22.07 22.07 Upside Targets ** ST = Short Term (one month) MT = Medium Term (three months) LT = Long Term (above six months) * The portfolio assumes each position consists of 1,000 shares and no deductions for any charges, fees and commision ** Upside Targets are derived from the subsequent Fibonacci Projection levels The above table is a performance summary of our top BUY recommendations from January 2018 to current (sorted by name) together with upside targets, which are taken from subsequent Fibonacci Projection targets which could be achieved in one month (ST), three months (MT) and above six months (LT) from recommendation date. Interpretation: Investors should aim to take profit/sell trading positions when the percentage upside on the last three columns falls to 5% or below (shaded column). A negative percentage value indicates the upside target for the particular time-frame has been breached. Any revision in upside targets will be highlighted in bold. 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 Monday, May 27, 2019, 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 5 of 5
79. Technical View Monday , May 27, 2019 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Technical Stock Watch Hong Kong Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my HSBC \ HKD65.40 BOLLINGER BANDS Upper Middle Lower HKD HKD HKD 69.32 66.87 64.41 SIMPLE MOVING AVERAGES 10-day 30-day 50-day HKD HKD HKD DMI SELL Recent Signal BOLLINGER BANDS HKD HKD HKD SELL HKD5.62 ICBC 6.02 5.69 5.36 SIMPLE MOVING AVERAGES 10-day 30-day 50-day DMI Recent Signal 65.89 66.98 66.08 DAILY MACD Recent Signal Upper Middle Lower www.taonline.com.my HKD HKD HKD 5.54 5.77 5.83 DAILY MACD SELL Recent Signal BUY Page 1 of 5
80. 27-May-19 BANK OF CHINA HKD3 .29 BOLLINGER BANDS Upper Middle Lower HKD HKD HKD 3.85 3.60 3.35 SIMPLE MOVING AVERAGES 10-day 30-day 50-day HKD HKD HKD DMI DAILY MACD Recent Signal SELL Recent Signal COSCO SHIPPING HKD HKD HKD 8.46 7.55 6.65 SELL HKD7.35 BOLLINGER BANDS Upper Middle Lower 3.49 3.66 3.66 SIMPLE MOVING AVERAGES 10-day 30-day 50-day HKD HKD HKD 7.21 8.04 8.07 DAILY MACD Recent Signal SELL Recent Signal SELL Page 2 of 5
81. 27-May-19 WEEKLY FOREIGN STOCK WATCH UPDATE The table below consists of the 45 HKSE Hang Seng Index component stocks , sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last two columns are auto generated. Clos e Name 24-May HANG S E NG 27,353.93 HS B C CH MOB ILE CCONB ICBC CNOOC CH LIF E BOC S HK P R OP P E TR O CH TE NCE NT HKS E CK HUTCHIS ON P ING AN S INOP E C COR P CH S HE NHUA CLP LI & F UNG BOC HK HS B ANK HK&CH GAS S WIR E HL P R OP WHAR F CH OV LAND P OWE R AS S E TS HE NDE R S ON BOCOMM CH COAL CH UNICOM BK E AS IA E S P R IT MTR S INO LAND CH R E S NE W WOR LD CH R E S LAND CH ME R CHANT CH R E S P OWE R ALCOR P CATHAY CITIC COS CO F IH MOBILE LTD GE NHK AIA S ANDS CHINA GALAXY 65.40 73.40 6.25 5.62 13.12 18.18 3.29 134.60 4.49 324.80 248.00 74.70 83.80 5.62 16.34 91.75 1.27 30.40 202.20 19.78 92.35 17.66 21.50 27.40 54.35 48.75 6.17 3.12 8.29 24.05 1.60 47.90 13.02 33.00 12.14 31.65 14.22 10.80 2.71 11.52 10.72 7.35 0.94 0.87 75.45 36.60 47.00 Change High Lower 86.80 0.15 1.30 0.02 0.03 0.00 0.00 (0.03) 0.50 (0.02) (1.20) 1.60 (0.15) 0.55 0.01 0.16 0.75 0.02 0.20 1.40 0.04 (0.60) 0.12 (0.05) (0.15) 0.15 0.15 0.05 0.02 0.02 (0.05) 0.01 (0.85) (0.08) (0.65) 0.08 0.35 (0.20) 0.30 0.02 (0.04) 0.02 0.19 0.02 (0.01) 0.55 (1.15) 0.15 RSI Bollinger Bands Low Mid Upper 14d Moving Averages 10d 30d DMI 50d DI + DI - DMI MACD ADX 27,457.59 27,291.94 27,034.40 28,802.29 30,570.18 26.86 27,989.15 29,204.70 29,152.01 11.16 38.04 30.98 65.65 73.65 6.29 5.65 13.16 18.50 3.32 135.00 4.51 332.80 249.40 75.40 85.10 5.65 16.42 92.35 1.28 30.75 202.40 19.84 95.50 17.80 21.50 27.95 54.40 49.00 6.21 3.15 8.39 24.20 1.64 47.90 13.20 34.00 12.20 32.15 14.44 10.90 2.75 11.56 10.86 7.41 0.95 0.89 75.70 37.75 47.65 65.30 72.20 6.20 5.55 12.96 18.10 3.27 133.00 4.43 324.60 246.00 74.50 83.70 5.56 16.18 90.75 1.24 30.20 200.40 19.68 92.10 17.52 21.05 27.20 53.90 48.65 6.13 3.09 8.22 23.80 1.58 47.15 12.94 32.50 12.00 31.30 14.22 10.46 2.69 11.46 10.62 7.16 0.90 0.86 74.70 36.35 46.55 64.41 71.03 6.02 5.36 12.74 17.15 3.35 132.18 4.35 332.40 233.70 74.90 82.41 5.52 16.08 86.42 1.20 29.84 199.14 18.29 92.50 16.78 21.78 27.68 53.55 46.85 5.90 2.99 8.10 23.70 1.53 45.54 12.71 33.13 11.94 31.16 14.22 10.20 2.58 11.56 10.50 6.65 0.82 0.88 73.71 36.92 45.34 66.87 73.30 6.61 5.69 13.75 20.23 3.60 134.57 4.75 371.53 258.99 79.89 89.80 5.82 17.03 88.85 1.28 33.45 204.42 18.96 96.97 17.77 22.55 28.71 55.01 48.21 6.37 3.31 8.92 24.57 1.58 47.27 13.40 35.15 12.68 33.12 15.26 10.83 2.91 12.66 11.14 7.55 1.13 1.00 78.67 40.99 54.36 69.32 75.56 7.20 6.02 14.76 23.31 3.85 136.95 5.16 410.66 284.28 84.87 97.19 6.12 17.99 91.27 1.36 37.05 209.70 19.63 101.43 18.76 23.31 29.74 56.46 49.56 6.84 3.64 9.74 25.44 1.63 48.99 14.10 37.18 13.43 35.08 16.30 11.47 3.23 13.76 11.79 8.46 1.45 1.11 83.62 45.05 63.38 40.56 34.87 25.70 40.53 38.14 24.61 26.85 48.77 23.27 25.10 35.52 19.68 32.93 27.96 25.35 58.77 36.17 22.70 47.03 70.83 32.14 41.65 31.65 36.58 43.21 52.36 34.78 34.78 21.59 39.63 46.38 60.26 36.03 45.83 33.15 34.73 26.82 29.87 31.77 22.37 27.93 33.98 40.56 18.27 38.44 37.16 26.35 65.89 72.39 6.33 5.54 13.37 18.82 3.49 133.84 4.58 357.18 247.02 77.76 86.69 5.69 16.61 88.97 1.26 31.82 202.60 19.16 95.10 17.44 22.43 28.32 55.12 48.20 6.15 3.17 8.55 24.20 1.58 47.57 13.09 34.70 12.34 32.25 14.82 10.54 2.77 12.18 10.84 7.21 1.00 0.96 76.48 39.23 50.30 66.98 74.50 6.74 5.77 14.11 20.70 3.66 135.14 4.88 377.68 265.56 81.32 91.07 5.95 17.34 89.08 1.33 34.07 203.18 18.89 97.78 18.16 22.66 29.03 54.77 48.81 6.45 3.34 9.23 24.89 1.61 47.59 13.71 34.93 12.93 33.60 15.65 11.05 3.05 13.04 11.39 8.04 1.12 1.02 79.08 41.64 55.88 66.08 77.69 6.82 5.83 14.07 20.89 3.66 134.19 5.00 371.30 268.82 81.68 89.17 6.15 17.85 89.86 1.36 33.65 198.66 18.73 97.74 18.57 23.02 29.09 54.61 48.14 6.49 3.33 9.56 25.27 1.66 47.61 14.12 33.60 12.88 33.35 16.00 11.88 3.07 13.22 11.55 8.07 1.03 1.07 78.53 40.56 55.02 17.46 17.32 9.91 16.66 16.14 10.64 14.25 16.73 10.57 14.13 15.08 10.50 15.45 11.72 5.49 33.04 16.21 12.42 14.25 30.76 14.10 17.45 13.36 15.94 21.58 22.24 8.47 9.73 9.89 18.11 11.07 24.27 9.07 17.22 12.30 13.89 11.61 9.13 13.01 11.27 16.67 10.61 28.97 10.12 14.84 13.11 13.41 24.71 31.88 33.70 25.86 28.03 33.67 43.04 19.47 33.88 40.79 31.08 38.63 34.75 31.12 28.74 9.82 21.80 36.08 13.36 6.78 25.98 18.59 29.80 27.69 33.67 15.11 24.73 31.68 37.01 21.13 12.36 20.69 28.57 20.09 24.18 24.52 33.30 31.62 30.64 41.67 21.59 29.74 25.49 36.12 27.48 30.33 40.53 21.44 37.86 34.56 26.01 21.81 33.52 28.18 12.86 38.04 25.09 30.65 30.05 27.08 47.58 46.61 23.74 27.67 34.79 30.38 40.27 20.83 27.39 23.47 12.35 25.91 22.43 31.78 31.35 43.02 14.02 26.53 20.13 39.60 20.71 24.20 15.41 32.97 59.30 33.16 36.04 24.31 NA 27.26 42.53 22.28 32.09 32.86 Diff Line (26.88) -518.97 (7.25) (14.56) (23.79) (9.20) (11.89) (23.03) (28.79) (2.74) (23.31) (26.67) (16.00) (28.12) (19.30) (19.41) (23.25) 23.22 (5.58) (23.67) 0.90 23.97 (11.88) (1.14) (16.44) (11.75) (12.09) 7.13 (16.26) (21.95) (27.12) (3.02) (1.29) 3.58 (19.50) (2.87) (11.89) (10.63) (21.68) (22.50) (17.62) (30.40) (4.92) (19.13) 3.48 (26.00) (12.64) (17.22) (27.12) -0.35 -1.39 -0.18 -0.09 -0.27 -0.85 -0.07 -0.16 -0.14 -10.40 -7.54 -1.83 -1.55 -0.14 -0.45 0.13 -0.04 -0.97 0.59 0.24 -1.23 -0.29 -0.26 -0.35 -0.03 0.06 -0.13 -0.07 -0.35 -0.35 -0.02 0.30 -0.32 0.07 -0.24 -0.53 -0.43 -0.40 -0.11 -0.42 -0.26 -0.32 -0.04 -0.05 -0.98 -0.92 -2.51 Signal -339.39 -0.02 -1.62 -0.15 -0.09 -0.23 -0.61 -0.05 -0.11 -0.13 -4.00 -6.38 -1.26 -0.60 -0.15 -0.40 -0.34 -0.04 -0.52 1.54 0.15 -0.77 -0.34 -0.19 -0.25 0.18 -0.01 -0.10 -0.05 -0.31 -0.37 -0.03 0.08 -0.33 0.43 -0.17 -0.30 -0.39 -0.45 -0.10 -0.32 -0.23 -0.31 0.00 -0.04 -0.43 -0.42 -1.51 Diff MACD Recent Signal (179.57) SELL SELL (0.33) 0.22 (0.03) 0.00 (0.04) (0.24) (0.02) (0.05) (0.01) (6.40) (1.16) (0.57) (0.96) 0.00 (0.05) 0.47 0.00 (0.44) (0.95) 0.09 (0.46) 0.05 (0.07) (0.11) (0.21) 0.07 (0.02) (0.02) (0.04) 0.01 0.01 0.22 0.01 (0.36) (0.07) (0.24) (0.05) 0.05 (0.01) (0.11) (0.03) (0.01) (0.04) (0.01) (0.54) (0.50) (1.00) SELL BUY SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL BUY BUY SELL SELL BUY SELL BUY SELL SELL SELL BUY SELL SELL SELL BUY BUY BUY BUY SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL BUY BUY SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL 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 3 of 5
82. 27-May-19 Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name 5 941 939 1398 883 2628 3988 16 857 700 388 1 2318 386 1088 2 494 2388 11 3 19 101 4 688 6 12 3328 1898 762 23 330 66 83 291 17 1109 144 836 2600 293 267 1199 2038 678 1299 1928 27 HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HS BC CH MOBILE CCONB ICBC CNOOC CH LIF E BOC S HK P R OP P E TRO CH TE NCE NT HKS E CK HUTCHIS ON P ING AN S INOP E C CORP CH S HE NHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS S WIRE HL P ROP WHAR F CH OV LAND P OWE R AS S E TS HE NDE R S ON BOCOMM CH COAL CH UNICOM BK E AS IA E S P RIT MTR S INO LAND CH RE S NE W WOR LD CH RE S LAND CH ME R CHANT CH RE S P OWE R ALCOR P CATHAY CITIC COS CO FIH MOBILE LTD GE NHK AIA S ANDS CHINA LTD GALAXY Close Target Price % upside 65.40 73.40 6.25 5.62 13.12 18.18 3.29 134.60 4.49 324.80 248.00 74.70 83.80 5.62 16.34 91.75 1.27 30.40 202.20 19.78 92.35 17.66 21.50 27.40 54.35 48.75 6.17 3.12 8.29 24.05 1.60 47.90 13.02 33.00 12.14 31.65 14.22 10.80 2.71 11.52 10.72 7.35 0.94 0.87 75.45 36.60 47.00 69.43 86.18 8.51 6.87 16.36 25.41 4.44 161.47 6.21 428.07 299.34 109.27 108.51 7.38 21.43 88.60 1.53 39.33 202.83 15.11 106.35 22.88 27.53 35.58 57.75 52.41 6.77 3.77 12.26 24.89 2.00 48.49 15.95 34.65 14.92 38.88 19.77 14.51 3.64 15.47 N/A 10.12 N/A N/A 89.96 45.69 62.37 6% 15% 27% 18% 20% 28% 26% 17% 28% 24% 17% 32% 23% 24% 24% -4% 0.17 23% 0% -31% 13% 23% 22% 23% 6% 7% 9% 17% 32% 3% 20% 1% 18% 5% 19% 19% 28% 26% 26% 26% N/A 27% N/A N/A 16% 20% 25% EPS ($) PER(x) Div Yield(%) 52week Price 2018 2019 2018 2019 2018 2019 High Low % Chg YTD 0.7 5.8 1.1 0.9 1.2 1.3 0.6 11.5 0.3 9.7 8.5 10.8 7.2 0.5 2.1 4.9 0.0 3.2 13.2 0.6 6.3 1.0 2.4 4.2 3.6 3.4 1.0 0.4 0.4 2.1 -0.6 2.1 0.8 0.6 0.9 3.5 1.7 1.6 0.1 1.2 1.8 0.1 0.0 N/A 0.5 0.3 3.1 0.7 6.0 1.1 0.9 1.3 1.4 0.7 12.5 0.4 12.2 9.5 11.7 8.2 0.6 2.1 5.1 0.0 3.4 13.8 0.6 7.2 1.1 2.5 4.9 3.7 3.4 1.1 0.4 0.6 2.2 -0.1 2.2 0.8 0.9 0.9 4.0 1.6 1.9 0.2 1.3 1.9 0.1 0.0 N/A 0.6 0.3 3.4 11.8 11.2 5.1 5.7 9.4 12.3 4.7 11.7 11.9 29.3 29.3 6.9 10.3 9.2 6.7 18.7 10.8 9.5 15.4 34.7 14.7 17.9 9.0 6.5 15.0 14.2 5.4 7.7 16.3 11.2 N/A 22.9 16.8 49.0 13.8 8.1 8.3 6.9 21.9 N/A 5.9 8.4 N/A N/A 17.9 17.3 14.9 11.4 10.8 4.8 5.4 8.8 11.7 4.4 10.8 10.5 23.5 26.0 6.4 9.0 8.7 6.7 18.1 9.0 8.9 14.6 32.1 12.8 16.8 8.5 5.6 14.7 14.3 5.1 7.8 12.0 10.7 NA 21.6 16.1 33.8 13.7 6.9 8.8 5.8 13.4 8.6 5.6 7.8 NA N/A 15.9 15.5 13.9 0.8 3.9 5.2 4.7 4.4 2.8 5.9 3.7 4.1 0.3 3.1 4.6 2.6 7.0 5.3 3.3 0.7 5.1 4.1 1.9 3.7 4.3 3.5 4.0 5.1 3.8 5.1 3.0 2.2 4.1 0.0 2.7 4.3 0.7 4.1 4.3 6.5 5.6 0.0 3.7 3.9 0.5 0.0 N/A 0.2 0.7 1.9 0.8 4.0 5.5 5.0 4.6 2.9 6.1 4.0 4.6 0.4 3.5 4.9 3.0 7.3 5.2 3.5 0.9 5.4 4.3 2.0 4.0 4.4 3.7 4.8 5.2 3.9 5.3 2.8 2.9 4.3 NA 2.8 4.4 1.1 4.3 5.1 5.0 6.6 0.0 4.1 4.4 0.6 0.0 N/A 0.3 0.7 2.5 77.70 87.70 8.28 6.74 15.78 23.35 4.26 142.00 6.67 431.56 286.20 92.50 96.00 8.03 21.85 97.40 3.42 40.60 216.80 19.84 103.80 20.00 26.60 31.30 58.00 51.05 7.06 3.62 11.28 32.92 2.72 49.50 15.48 39.90 13.88 37.35 18.44 16.48 4.29 14.14 13.28 9.41 2.23 1.68 83.90 48.60 69.79 60.35 67.85 6.02 5.10 11.20 15.44 3.20 99.50 4.43 251.38 195.60 72.80 65.95 5.37 16.04 79.85 1.16 27.55 166.00 14.60 75.85 13.90 18.70 22.35 51.35 36.15 5.33 2.99 8.02 23.60 1.48 37.50 11.92 24.10 9.67 23.80 13.08 10.20 2.36 9.81 10.22 6.33 0.65 0.86 58.13 29.85 39.96 0.93 -2.59 -3.25 0.54 8.43 9.25 -2.66 20.61 -7.99 3.44 9.44 -0.66 21.19 0.54 -4.78 3.67 3.25 4.47 15.02 22.10 11.67 18.36 5.39 1.86 -0.28 25.00 0.98 1.30 -0.84 -2.15 2.56 16.26 -2.98 20.66 17.18 5.15 0.85 -28.29 7.54 3.41 -12.70 -4.55 14.63 -39.58 16.22 6.71 -4.83 Note: The above data is based on Bloomberg consensus Page 4 of 5
83. 27-May-19 LIST OF RECOMMENDED BUY STOCKS FROM JANUARY 2018 TO CURRENT Stock AIA GROUP AIA GROUP AIA GROUP AIA GROUP AIA GROUP AIA GROUP BANK OF CHINA BANK OF CHINA BANK OF CHINA CATHAY PACIFIC CHINA COAL ENERGY CHINA CONST BANK CHINA LIFE CHINA LIFE CHINA PETROLEUM CHINA PETROLEUM CHINA PETROLEUM CHINA SHENHUA CHINA UNICOM CHINA UNICOM CHINA UNICOM COSCO COSCO COSCO COSCO COSCO GALAXY ENTERTAINMENT GALAXY ENTERTAINMENT GALAXY ENTERTAINMENT ICBC PETROCHINA PETROCHINA PETROCHINA PING AN PING AN PING AN SANDS CHINA LTD REC BUY Date Price 09 /Mar/18 13/Apr/18 14/Apr/18 07/Sep/18 23/Oct/18 14/Dec/18 04/Apr/18 12/Jul/18 19/Mar/19 19/Apr/18 29/Jun/18 22/Mar/19 29/Mar/19 09/May/19 21/Feb/18 04/Oct/18 22/Feb/19 03/May/19 14/Feb/18 01/Jun/18 13/Feb/19 08/Feb/18 25/Apr/18 02/Aug/18 28/Sep/18 09/Jan/19 04/Jul/18 19/Sep/18 30/Oct/18 18/Jul/18 23/Mar/18 22/Nov/18 04/Apr/19 26/Jul/18 12/Oct/18 01/Mar/19 25/Sep/18 Total funds invested * Total unrealised profit Return 24-May-19 Price 64.70 70.30 71.30 64.50 65.50 64.60 4.26 3.64 3.71 12.52 3.16 6.95 20.35 20.10 6.42 7.62 6.81 17.50 9.94 10.66 9.02 7.74 6.52 7.39 8.05 7.70 56.80 51.15 41.80 5.47 5.53 5.43 5.19 74.20 72.10 82.65 36.15 75.45 75.45 75.45 75.45 75.45 75.45 3.29 3.29 3.29 11.52 3.12 6.25 18.18 18.18 5.62 5.62 5.62 16.34 8.29 8.29 8.29 7.35 7.35 7.35 7.35 7.35 47.00 47.00 47.00 5.62 4.49 4.49 4.49 83.80 83.80 83.80 36.60 Change (+/-) 10.75 5.15 4.15 10.95 9.95 10.85 (0.97) (0.35) (0.42) (1.00) (0.04) (0.70) (2.17) (1.92) (0.80) (2.00) (1.19) (1.16) (1.65) (2.37) (0.73) (0.39) 0.83 (0.04) (0.70) (0.35) (9.80) (4.15) 5.20 0.15 (1.04) (0.94) (0.70) 9.60 11.70 1.15 0.45 1,017,430 45,300 4.45% pct ST 16.62 85.23 7.33 85.23 5.82 85.23 16.98 85.23 15.19 85.23 16.80 85.23 (22.77) 3.68 (9.62) 3.68 (11.32) 3.68 (7.99) 12.14 (1.27) 3.60 (10.07) 7.23 (10.66) 19.93 (9.55) 19.93 (12.46) 6.52 (26.25) 6.52 (17.47) 6.52 (6.63) 18.12 (16.60) 9.07 (22.23) 9.07 (8.09) 9.07 8.56 8.14 12.73 8.14 (0.54) 8.14 (8.70) 8.14 (4.55) 8.14 (17.25) 51.96 (8.11) 51.96 12.44 51.96 2.74 6.23 (18.81) 5.08 (17.31) 5.08 (13.49) 5.08 12.94 89.13 16.23 89.13 1.39 89.13 1.24 39.60 Upside Targets MT LT 88.40 91.56 88.40 91.56 88.40 91.56 88.40 91.56 88.40 91.56 88.40 91.56 3.93 4.17 3.93 4.17 3.93 4.17 12.86 13.58 3.90 4.23 7.65 8.06 21.32 22.70 21.32 22.70 6.87 7.22 6.87 7.22 6.87 7.22 18.60 19.38 9.81 10.47 9.81 10.47 9.81 10.47 8.56 9.09 8.56 9.09 8.56 9.09 8.56 9.09 8.56 9.09 56.82 62.83 56.82 62.83 56.82 62.83 6.56 6.98 5.35 5.63 5.35 5.63 5.35 5.63 98.54 107.95 98.54 107.95 98.54 107.95 41.90 44.74 ST 12.96 12.96 12.96 12.96 12.96 12.96 11.85 11.85 11.85 5.38 15.38 15.68 9.63 9.63 16.01 16.01 16.01 10.89 9.41 9.41 9.41 10.75 10.75 10.75 10.75 10.75 10.55 10.55 10.55 10.85 13.14 13.14 13.14 6.36 6.36 6.36 8.20 % Upside MT 17.16 17.16 17.16 17.16 17.16 17.16 19.45 19.45 19.45 11.63 25.00 22.40 17.27 17.27 22.24 22.24 22.24 13.83 18.34 18.34 18.34 16.46 16.46 16.46 16.46 16.46 20.89 20.89 20.89 16.73 19.15 19.15 19.15 17.59 17.59 17.59 14.48 LT 21.35 21.35 21.35 21.35 21.35 21.35 26.75 26.75 26.75 17.88 35.58 28.96 24.86 24.86 28.47 28.47 28.47 18.60 26.30 26.30 26.30 23.67 23.67 23.67 23.67 23.67 33.68 33.68 33.68 24.20 25.39 25.39 25.39 28.82 28.82 28.82 22.24 Upside Targets ** ST = Short Term (one month) MT = Medium Term (three months) LT = Long Term (above six months) * The portfolio assumes each position consists of 1,000 shares and no deductions for any charges, fees and commision ** Upside Targets are derived from the subsequent Fibonacci Projection levels The above table is a performance summary of our top BUY recommendations from January 2018 to current (sorted by name) together with upside targets, which are taken from subsequent Fibonacci Projection targets which could be achieved in one month (ST), three months (MT) and above six months (LT) from recommendation date. Interpretation: Investors should aim to take profit/sell trading positions when the percentage upside on the last three columns falls to 5% or below (shaded column). A negative percentage value indicates the upside target for the particular time-frame has been breached. Any revision in upside targets will be highlighted in bold. 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 Monday, May 27, 2019, 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 5 of 5
84. Technical View Monday , May 27, 2019 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Technical Stock Watch Singapore Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my SINGTEL SGD3.15 BOLLINGER BANDS Upper Middle Lower SGD SGD SGD SIMPLE MOVING AVERAGES 3.18 3.14 3.10 10-day 30-day 50-day SGD SGD SGD DMI SELL Recent Signal GENTING SINGAPORE SGD SGD SGD SELL SGD0.87 BOLLINGER BANDS SIMPLE MOVING AVERAGES 1.01 0.93 0.86 10-day 30-day 50-day DMI Recent Signal 3.14 3.15 3.09 DAILY MACD Recent Signal Upper Middle Lower www.taonline.com.my SGD SGD SGD 0.90 0.94 0.97 DAILY MACD SELL Recent Signal SELL Page 1 of 5
85. 27-May-19 KEPPEL CORP SGD6 .12 BOLLINGER BANDS Upper Middle Lower SGD SGD SGD SIMPLE MOVING AVERAGES 7.05 6.57 6.09 10-day 30-day 50-day SGD SGD SGD DMI DAILY MACD Recent Signal SELL Recent Signal SINGAPORE AIRLINES SGD SGD SGD SIMPLE MOVING AVERAGES 9.86 9.51 9.17 10-day 30-day 50-day DMI Recent Signal SELL SGD9.17 BOLLINGER BANDS Upper Middle Lower 6.37 6.62 6.48 SGD SGD SGD 9.38 9.62 9.67 DAILY MACD SELL Recent Signal SELL Page 2 of 5
86. 27-May-19 WEEKLY FOREIGN STOCK WATCH UPDATE The table below consists of the revamped 30 SGX FTSE Straits Times Index component stocks , sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last two columns are auto generated. Stock Name Close 24-May FS S TI 3,169.89 Change High Low 9.17 3,172.72 3,149.97 Lower Bollinger Bands Mid Upper 3,129.04 3,286.61 RSI 14d 3,444.19 26.46 10d Moving Averages 30d 50d 3,218.28 3,303.79 DI + DI - DMI ADX Diff MACD Line Signal 3,275.62 12.57 41.58 37.60 (29.01) -35.01 -17.83 Diff DMI MACD Recent Signal (17.18) SELL SELL 3.15 0.03 3.16 3.11 3.10 3.14 3.18 47.95 3.14 3.15 3.09 13.09 17.72 15.34 (4.63) 0.01 0.01 (0.01) SELL SELL DBS 25.20 0.01 25.40 25.04 24.98 26.71 28.45 32.90 26.04 26.87 26.36 18.00 42.28 29.18 (24.28) -0.31 -0.09 (0.22) SELL SELL OCBC 11.01 0.01 11.05 10.97 10.75 11.50 12.25 30.89 11.18 11.58 11.44 14.85 37.99 31.15 (23.14) -0.15 -0.08 (0.07) SELL SELL UOB 24.64 0.06 24.68 24.45 23.80 25.98 28.16 29.51 25.06 26.16 25.80 14.59 40.29 40.81 (25.70) -0.42 -0.22 (0.20) SELL SELL J ARDINE M. 61.70 (0.24) 61.98 61.21 61.24 63.92 66.59 41.00 63.00 63.72 63.83 12.57 26.66 25.96 (14.09) -0.60 -0.32 (0.28) SELL SELL 3.40 (0.02) 3.44 3.37 3.42 3.56 3.69 37.74 3.51 3.57 3.48 13.97 27.49 27.32 (13.52) -0.01 0.01 (0.02) SELL SELL HK LAND 6.85 0.10 6.85 6.72 6.68 6.94 7.20 36.61 6.84 6.99 7.10 14.61 27.12 22.45 (12.51) -0.09 -0.08 (0.01) SELL SELL CAP LAND 3.28 0.04 3.29 3.24 3.20 3.45 3.69 24.83 3.33 3.52 3.53 12.92 43.10 32.83 (30.18) -0.08 -0.06 (0.02) SELL SELL GENS P 0.87 (0.01) 0.88 0.87 0.86 0.93 1.01 20.85 0.90 0.94 0.97 8.13 35.53 38.80 (27.39) -0.03 -0.02 (0.01) SELL SELL KEP PEL 6.12 (0.01) 6.16 6.09 6.09 6.57 7.05 28.33 6.37 6.62 6.48 12.20 33.51 28.16 (21.31) -0.10 -0.03 (0.07) SELL SELL S GX 7.62 0.16 7.63 7.46 7.25 7.38 7.51 56.15 7.41 7.36 7.35 22.59 17.75 13.81 4.84 0.02 0.01 0.02 BUY BUY S IA 9.17 0.04 9.19 9.09 9.17 9.51 9.86 20.02 9.38 9.62 9.67 8.36 33.75 30.18 (25.40) -0.14 -0.10 (0.04) SELL SELL FNN 1.78 0.05 1.82 1.76 1.71 1.78 1.84 38.70 1.75 1.80 1.79 18.56 29.00 19.59 (10.43) -0.02 -0.01 (0.01) SELL SELL SELL S INGTEL WILMAR CITY DEV 8.33 0.03 8.38 8.26 8.31 8.78 9.24 27.72 8.57 8.93 8.97 7.61 35.79 37.80 (28.18) -0.17 -0.13 (0.05) SELL J ARDINE S . 35.60 (0.30) 35.88 35.39 35.39 37.12 38.84 40.09 36.61 37.05 37.31 15.09 26.07 19.16 (10.98) -0.41 -0.23 (0.18) SELL SELL SELL S G PRES S J ARDINE C&C 2.39 0.07 2.39 2.32 2.30 2.42 2.54 28.74 2.37 2.43 2.44 11.88 27.46 23.16 (15.58) -0.03 -0.02 (0.01) SELL 33.67 0.36 33.75 33.33 32.31 34.57 36.82 39.77 33.65 34.72 34.06 16.42 22.48 21.88 (6.06) -0.40 -0.21 (0.19) SELL SELL SELL SELL GOLDEN AGRI 0.27 (0.01) 0.28 0.26 0.27 0.28 0.30 39.45 0.28 0.29 0.29 10.30 18.26 22.67 (7.96) -0.01 0.00 (0.00) S G TECH 3.90 0.01 3.91 3.88 3.85 3.95 4.05 47.98 3.97 3.91 3.85 16.02 22.67 14.36 (6.65) 0.04 (0.01) SELL SELL BUY 0.02 OLAM INT 1.81 0.00 1.83 1.79 1.74 1.88 2.02 40.11 1.83 1.90 1.94 19.43 37.85 25.13 (18.42) -0.03 -0.03 0.00 SELL CAP TRUS T 2.44 0.05 2.44 2.39 2.36 2.42 2.48 45.00 2.43 2.40 2.39 13.60 19.91 14.24 (6.31) 0.01 0.01 (0.01) SELL SELL S EMBCORP 2.47 0.01 2.48 2.44 2.43 2.60 2.77 27.51 2.52 2.64 2.62 11.06 34.63 32.64 (23.57) -0.05 -0.03 (0.01) SELL SELL S EMCORP M. 1.47 0.00 1.47 1.43 1.44 1.61 1.79 30.03 1.54 1.64 1.64 9.59 36.94 35.36 (27.35) -0.05 -0.03 (0.01) SELL SELL CMFT DELGRO 2.48 0.03 2.48 2.44 2.42 2.59 2.75 35.37 2.52 2.60 2.57 9.79 26.52 37.44 (16.72) -0.03 -0.01 (0.02) SELL SELL S TARHUB 1.52 0.00 1.52 1.50 1.50 1.54 1.57 45.32 1.53 1.53 1.53 19.43 27.11 12.60 (7.67) 0.00 0.00 (0.00) SELL SELL S IA ENG 2.41 (0.01) 2.44 2.41 2.40 2.48 2.57 39.30 2.45 2.49 2.47 17.05 26.19 14.73 (9.14) -0.01 -0.01 (0.01) SELL SELL IFOOD AGRI 0.28 0.00 0.28 0.28 0.27 0.28 0.28 58.54 0.28 0.28 0.25 22.92 4.67 62.08 18.26 0.01 0.01 (0.00) BUY SELL YZJ 1.37 (0.01) 1.38 1.35 1.40 1.51 1.62 24.44 1.46 1.54 1.53 11.41 33.83 29.53 (22.42) -0.03 -0.02 (0.02) SELL SELL 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 3 of 5
87. 27-May-19 Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name Close Target Price % upside ST DBS OCBC UOB JM WIL HKL CAP L GE NS KE P S GX S IA FNN CIT JS S PH J CNC GGR S TE OLAM CT S CI S MM CD S TH S IE IFAR YZJ S GD S INGTE L DBS OCBC UOB J ARDINE M. WILMAR HK LAND CAP LAND GE NS P KE P P E L S GX S IA FNN CITY DE V J ARDINE S S G P RE S S J ARDINE C&C GOLDE N AGRI S G TE CH OLAM INT CAP TRUS T S E MBCORP S E MCORP M. CMFT DE LGRO S TARHUB S IA E NG IFOOD AGRI YZJ 3.15 3.50 25.20 SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP EPS ($) PER(x) Div Yield(%) 52week Price % Chg 2018 2019 2018 2019 2018 2019 High Low YTD 10% 0.2 0.2 16.6 15.4 5.8 5.5 3.36 2.83 7.51 29.41 14% 2.4 2.6 10.4 9.8 4.9 5.2 29.25 22.65 6.37 11.01 12.98 15% 1.1 1.2 9.8 9.2 4.3 4.6 13.07 10.36 -2.22 24.64 29.86 17% 2.5 2.7 9.8 9.3 5.1 5.3 29.43 23.63 1.03 61.70 67.50 0.09 4.8 5.0 12.9 12.3 2.8 2.9 72.05 10.99 -11.33 3.40 3.76 10% 0.2 0.2 12.7 11.6 2.4 2.5 3.69 2.97 8.97 6.85 8.17 16% 0.5 0.5 14.9 14.2 3.3 3.5 7.53 5.88 8.73 3.28 4.05 19% 0.2 0.2 14.7 13.4 3.8 3.9 3.72 2.98 5.47 0.87 1.16 25% 0.1 0.1 14.7 14.3 4.3 4.3 1.32 0.86 -10.77 6.12 8.08 24% 0.5 0.6 11.6 9.5 4.1 4.6 8.15 5.67 3.55 7.62 7.70 1% 0.4 0.4 21.2 20.7 4.1 4.2 8.05 6.72 6.57 9.17 10.94 16% 0.7 0.7 13.4 13.9 4.1 3.8 11.84 9.09 -2.65 1.78 NA NA NA NA NA NA NA NA 2.10 1.67 3.49 8.33 10.89 0.24 0.6 0.6 13.5 12.9 2.4 2.4 11.83 7.75 3.27 35.60 NA NA 3.2 3.5 11.2 10.2 1.0 1.0 40.78 31.55 -3.02 2.39 2.61 0.09 0.1 0.1 18.0 17.6 5.0 5.1 2.88 2.31 1.70 33.67 40.08 16% 2.6 2.8 9.5 8.7 2.8 3.0 38.16 27.66 -4.75 0.27 0.24 -12% 0.0 0.0 24.1 14.8 1.5 2.3 0.34 0.23 8.16 3.90 4.36 11% 0.2 0.2 20.7 18.8 4.0 4.2 4.05 3.21 11.75 1.81 NA NA 0.2 0.2 12.1 11.3 4.2 4.4 2.33 1.57 9.70 2.44 2.39 -2% 0.1 0.1 19.7 18.2 4.9 5.1 2.47 2.00 7.96 2.47 3.25 24% 0.2 0.3 10.4 9.2 2.5 3.2 3.11 2.43 -2.76 1.47 1.92 23% 0.0 0.0 NA 42.0 0.3 1.0 2.24 1.43 -4.55 2.48 2.74 10% 0.1 0.2 16.6 16.1 4.5 4.6 2.73 2.07 15.35 1.52 1.59 5% 0.1 0.1 14.1 15.4 6.0 5.5 2.13 1.49 -13.14 2.41 2.69 10% 0.1 0.2 16.2 15.4 4.8 5.2 3.32 2.20 6.17 0.28 0.25 -9% 253.6 372.5 11.3 7.7 NA NA 0.29 0.18 43.98 1.37 1.59 14% 0.8 0.8 8.5 8.4 17.4 17.9 1.65 0.84 9.60 Note: The above data is based on Bloomberg consensus Page 4 of 5
88. 27-May-19 LIST OF RECOMMENDED BUY STOCKS FROM JANUARY 2018 TO CURRENT Stock CAPITALAND CAPITALAND CAPITALAND CITY DEVELOPMENTS CITY DEVELOPMENTS CITY DEVELOPMENTS CITY DEVELOPMENTS CITY DEVELOPMENTS CITY DEVELOPMENTS CITY DEVELOPMENTS DBS DBS DBS DBS GENTING SPORE GENTING SPORE GENTING SPORE GENTING SPORE GENTING SPORE HONGKONG LAND HONGKONG LAND KEPPEL CORP KEPPEL CORP OCBC OCBC SEMBCORP INDUSTRIES SINGTEL SINGTEL SINGTEL SINGTEL SINGTEL SINGTEL SPORE AIRLINES SPORE AIRLINES SPORE AIRLINES SPORE AIRLINES SPORE EXCHANGE WILMAR INT 'L YANGZIJIANG REC BUY Date Price 7/Feb/18 27/Feb/18 27/Jun/18 17/May/18 30/Aug/18 11/Oct/18 6/Dec/18 27/Feb/19 26/Mar/19 8/May/19 4/Jan/18 10/Jul/18 26/Oct/18 12/Dec/18 1/Mar/18 6/Apr/18 21/Aug/18 21/Sep/18 2/Apr/19 6/Jun/18 27/Sep/18 6/Sep/18 1/Nov/18 13/Jul/18 24/Oct/18 10/Jan/19 9/Feb/18 15/Mar/18 24/May/18 30/Jul/18 14/Nov/18 13/Mar/19 18/Jul/18 3/Aug/18 5/Oct/18 15/May/19 21/Mar/19 10/Apr/18 2/Nov/18 Total funds invested * Total unrealised profit Return 24-May-19 Price 3.61 3.63 3.20 11.97 9.44 8.45 8.74 9.26 8.87 9.00 25.88 25.71 23.71 23.49 1.15 1.08 1.06 1.03 1.05 7.23 6.58 6.44 6.20 11.30 10.56 2.64 3.40 3.40 3.34 3.20 3.03 2.95 10.75 9.67 9.64 9.47 7.33 3.15 1.27 3.28 3.28 3.28 8.33 8.33 8.33 8.33 8.33 8.33 8.33 25.20 25.20 25.20 25.20 0.87 0.87 0.87 0.87 0.87 6.85 6.85 6.12 6.12 11.01 11.01 2.47 3.15 3.15 3.15 3.15 3.15 3.15 9.17 9.17 9.17 9.17 7.62 3.40 1.37 Change (+/-) (0.33) (0.35) 0.08 (3.64) (1.11) (0.12) (0.41) (0.93) (0.54) (0.67) (0.68) (0.51) 1.49 1.71 (0.28) (0.21) (0.19) (0.16) (0.18) (0.38) 0.27 (0.32) (0.08) (0.29) 0.45 (0.17) (0.25) (0.25) (0.19) (0.05) 0.12 0.20 (1.58) (0.50) (0.47) (0.30) 0.29 0.25 0.10 301,880 (10,180) -3.37% Upside Targets pct ST MT LT (9.14) 3.48 3.52 3.66 (9.64) 3.48 3.52 3.66 2.50 3.48 3.52 3.66 (30.41) 9.07 9.88 10.54 (11.76) 9.07 9.88 10.54 (1.42) 9.07 9.88 10.54 (4.69) 9.07 9.88 10.54 (10.04) 9.07 9.88 10.54 (6.09) 9.07 9.88 10.54 (7.44) 9.07 9.88 10.54 (2.63) 27.69 30.75 33.81 (1.98) 27.69 30.75 33.81 6.28 27.69 30.75 33.81 7.28 27.69 30.75 33.81 (24.35) 0.96 1.03 1.08 (19.44) 0.96 1.03 1.08 (17.92) 0.96 1.03 1.08 (15.53) 0.96 1.03 1.08 (17.14) 0.96 1.03 1.08 (5.26) 7.85 8.31 8.60 4.10 7.85 8.31 8.60 (4.97) 6.73 7.23 7.85 (1.29) 6.73 7.23 7.85 (2.57) 12.66 14.04 15.41 4.26 12.66 14.04 15.41 (6.44) 2.87 3.01 3.15 (7.35) 3.24 3.38 3.50 (7.35) 3.24 3.38 3.50 (5.69) 3.24 3.38 3.50 (1.56) 3.24 3.38 3.50 3.96 3.24 3.38 3.50 6.78 3.24 3.38 3.50 (14.70) 10.17 10.48 10.80 (5.17) 10.17 10.48 10.80 (4.88) 10.17 10.48 10.80 (3.17) 10.17 10.48 10.80 3.96 7.67 8.07 8.50 7.94 3.65 3.87 4.08 7.87 1.52 1.62 1.74 ST 6.10 6.10 6.10 8.88 8.88 8.88 8.88 8.88 8.88 8.88 9.88 9.88 9.88 9.88 10.34 10.34 10.34 10.34 10.34 14.60 14.60 9.97 9.97 14.99 14.99 16.19 2.86 2.86 2.86 2.86 2.86 2.86 10.91 10.91 10.91 10.91 0.66 7.35 10.95 % Upside MT 7.32 7.32 7.32 18.61 18.61 18.61 18.61 18.61 18.61 18.61 22.02 22.02 22.02 22.02 18.39 18.39 18.39 18.39 18.39 21.31 21.31 18.14 18.14 27.52 27.52 21.86 7.30 7.30 7.30 7.30 7.30 7.30 14.29 14.29 14.29 14.29 5.91 13.82 18.25 LT 11.59 11.59 11.59 26.53 26.53 26.53 26.53 26.53 26.53 26.53 34.17 34.17 34.17 34.17 24.14 24.14 24.14 24.14 24.14 25.55 25.55 28.27 28.27 39.96 39.96 27.53 11.11 11.11 11.11 11.11 11.11 11.11 17.78 17.78 17.78 17.78 11.55 20.00 27.01 Upside Targets ** ST = Short Term (one month) MT = Medium Term (three months) LT = Long Term (above six months) * The portfolio assumes each position consists of 1,000 shares and no deductions for any charges, fees and commision ** Upside Targets are derived from the subsequent Fibonacci Projection levels The above table is a performance summary of our top BUY recommendations from January 2018 to current (sorted by name) together with upside targets, which are taken from subsequent Fibonacci Projection targets which could be achieved in one month (ST), three months (MT) and above six months (LT) from recommendation date. Interpretation: Investors should aim to take profit/sell trading positions when the percentage upside on the last three columns falls to 5% or below (shaded column). A negative percentage value indicates the upside target for the particular time-frame has been breached. Any revision in upside targets will be highlighted in bold. 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 Monday, May 27, 2019, 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 5 of 5
89. Technical View Monday , May 27, 2019 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Weekly Technical Stock Watch United States Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my CITIGROUP INC USD63.90 BOLLINGER BANDS Upper Middle Lower USD USD USD www.taonline.com.my SIMPLE MOVING AVERAGES 72.38 67.49 62.59 10-day 30-day 50-day USD USD USD SELL Recent Signal 65.31 67.85 66.28 DAILY MACD Recent Signal MORGAN STANLEY USD42.71 BOLLINGER BANDS Upper Middle Lower USD USD USD SIMPLE MOVING AVERAGES 49.61 45.82 42.04 10-day 30-day 50-day DMI Recent Signal SELL USD USD USD 44.10 46.21 45.04 DAILY MACD SELL Recent Signal SELL Page 1 of 5
90. 27-May-19 APPLE INC USD179 .66 BOLLINGER BANDS SIMPLE MOVING AVERAGES Upper Middle Lower USD USD USD 216.84 196.48 176.32 10-day 30-day 50-day USD USD USD DMI DAILY MACD Recent Signal SELL Recent Signal ALIBABA GROUP USD USD USD SIMPLE MOVING AVERAGES 199.99 177.37 155.34 10-day 30-day 50-day SELL Recent Signal DMI Recent Signal SELL USD156.00 BOLLINGER BANDS Upper Middle Lower 187.37 198.58 195.85 USD USD USD 168.45 180.36 180.73 DAILY MACD SELL Page 2 of 5
91. 27-May-19 WEEKLY FOREIGN STOCK WATCH UPDATE The table below consists of the 30 NYSE Dow Jones Industrial Average component stocks , sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. The technical BUY/SELL signals on the last two columns are auto generated. Stock Name DOW J ONES Close Change High Low Bollinger Bands RSI Moving Averages DMI 23-May Lower Mid Upper 14d 10d 30d 50d DI + 25,490.47 -286.14 25,657.99 25,328.09 25,224.87 26,001.56 26,778.24 38.93 25689.84 26,155.32 26,075.82 16.20 DI 32.41 MACD ADX Diff Line Signal 24.30 (16.21) -153.45 -113.16 IBM 3M CHEVRON CATE RPILLAR MCDONALDS UNITE CH BOE ING E XXON MOBIL J &J P&G COCA-COLA WAL-MART TRAVE LE RS DOWDUPONT GOLDMAN J PMORGAN AME X ME RCK WALT DIS NE Y VE RIZON HOME DE POT UTD HEALTH AT&T MICROS OFT CIS CO INTE L PFIZE R WALGRE E NS BOOTS ALLIANCE NIKE VIS A AIG BANK OF AME RICA BP CITIGROUP LV S ANDS MS WELLS FARGO FACE BOOK INC-A APPLE INC ALIBABA GRP-ADR 132.39 165.87 117.87 122.26 198.97 130.45 350.55 73.79 139.79 106.76 49.85 101.86 146.94 30.94 191.97 108.64 118.43 81.02 132.73 58.87 192.00 246.50 32.14 126.18 54.19 44.53 41.92 51.61 82.64 161.51 52.20 27.76 41.34 63.90 56.97 42.71 45.56 180.87 179.66 156.00 38.88 46.00 31.49 37.67 10.76 32.95 31.83 42.96 19.45 16.27 19.33 20.26 16.04 36.53 35.78 32.22 15.99 17.29 19.10 18.79 28.74 19.64 14.08 21.99 26.84 43.98 13.88 28.90 29.21 22.31 12.85 34.57 43.24 32.23 43.76 40.94 28.95 29.31 41.49 42.28 35.11 55.10 13.11 34.53 44.14 24.33 23.92 34.25 15.82 23.63 24.69 14.26 31.14 38.23 17.58 21.03 38.70 18.29 37.07 28.31 33.19 18.20 27.00 27.61 29.84 49.47 19.57 41.25 17.26 18.39 41.49 24.72 26.96 23.22 41.11 32.53 21.63 18.34 33.24 24.79 -3.96 -3.87 -2.70 -1.30 -0.99 -4.96 -2.23 -1.77 1.03 0.04 0.20 -0.37 -1.02 -0.78 -3.55 -2.18 -1.58 0.04 -1.12 -0.38 3.09 -2.84 -0.14 -1.49 -1.50 0.53 -0.07 -1.33 -0.56 -2.73 -0.36 -0.73 -1.00 -0.76 -1.62 -0.78 -0.54 -4.45 -3.12 -2.83 135.00 168.30 118.59 123.73 199.41 133.82 351.31 74.75 139.85 107.03 49.90 101.91 147.40 31.31 193.00 109.71 119.38 81.18 133.53 59.27 192.53 248.15 32.32 126.29 55.00 44.74 41.98 52.50 83.06 164.25 52.23 28.20 41.54 63.94 57.87 42.82 45.86 183.90 180.54 158.48 130.44 164.60 116.86 121.42 198.10 129.40 341.35 73.04 137.67 105.89 49.49 100.94 145.51 30.64 189.56 107.51 117.85 80.41 131.96 58.55 186.30 244.39 31.94 124.74 53.94 42.86 41.65 51.36 81.99 160.82 51.53 27.50 41.08 63.08 56.20 42.15 45.07 179.67 177.81 154.41 131.23 161.57 115.84 118.53 195.10 129.89 334.72 73.69 136.22 104.08 47.42 99.50 139.43 27.43 191.87 107.99 115.70 76.24 130.83 55.37 186.25 228.64 29.75 123.48 51.48 41.56 39.81 51.70 80.75 158.37 45.27 27.44 41.01 62.59 56.87 42.04 44.84 179.00 176.32 155.34 136.77 177.64 119.49 130.87 198.21 136.98 360.69 76.99 139.46 106.03 48.65 101.25 144.41 32.99 200.75 112.68 118.21 78.64 134.82 57.34 195.53 239.11 31.11 127.16 54.58 47.70 41.04 53.03 84.42 162.18 49.98 29.41 42.38 67.49 63.92 45.82 47.00 188.27 196.48 177.37 142.32 193.71 123.15 143.21 201.32 144.06 386.65 80.29 142.69 107.98 49.88 103.00 149.38 38.54 209.62 117.36 120.73 81.05 138.82 59.32 204.80 249.58 32.48 130.83 57.68 53.83 42.27 54.36 88.10 165.99 54.69 31.38 43.75 72.38 70.97 49.61 49.16 197.55 216.64 199.39 37.35 21.92 41.76 31.76 58.81 39.04 40.51 25.74 55.73 55.82 64.78 53.69 65.50 34.08 36.62 40.28 55.94 63.32 53.08 60.07 42.53 58.85 62.27 52.18 47.33 29.54 58.95 33.34 40.95 50.93 71.96 33.42 35.93 38.15 26.33 31.61 36.28 44.12 32.41 28.70 134.50 170.93 120.82 125.40 199.31 134.15 350.44 75.82 138.19 106.72 48.98 101.09 146.50 31.00 197.01 110.68 118.68 78.86 133.84 57.91 191.66 242.26 31.59 126.52 54.38 44.87 41.34 52.52 83.53 162.31 52.00 28.51 41.97 65.31 61.04 44.10 46.08 184.29 187.37 168.45 138.33 190.03 119.90 134.14 196.65 136.89 366.19 78.58 138.92 105.68 48.22 101.72 142.17 34.89 201.73 112.48 116.30 77.81 133.55 57.53 198.72 234.98 31.34 125.82 55.20 51.00 40.81 53.33 85.43 161.56 48.63 29.58 43.12 67.85 65.01 46.21 47.11 185.96 198.58 180.36 139.47 197.94 121.81 134.63 192.95 133.69 370.58 79.63 138.33 104.63 47.41 100.37 139.44 35.70 199.74 108.99 114.09 79.53 125.03 58.08 196.06 240.25 31.34 122.79 54.76 52.33 41.44 55.96 85.30 159.30 46.68 29.14 43.56 66.28 63.79 45.04 47.96 179.27 195.85 180.73 14.02 13.53 20.11 14.04 22.12 17.81 17.43 12.15 18.36 24.32 33.39 26.61 24.98 16.52 16.62 19.25 28.76 30.16 24.17 31.16 10.46 24.78 33.49 25.89 26.45 9.54 25.54 10.63 19.28 22.87 31.68 14.34 19.08 17.53 10.13 14.85 13.99 22.69 16.88 14.91 (24.86) (32.48) (11.38) (23.63) 11.36 (15.14) (14.40) (30.80) (1.09) 8.05 14.06 6.35 8.94 (20.02) (19.16) (12.97) 12.77 12.87 5.08 12.38 (18.28) 5.14 19.41 3.90 (0.39) (34.45) 11.66 (18.27) (9.93) 0.56 18.84 (20.23) (24.16) (14.70) (33.63) (26.09) (14.96) (6.63) (24.62) (27.38) -1.52 -9.49 -0.21 -3.91 1.90 -0.47 -6.93 -1.35 0.02 0.74 0.54 0.20 2.54 -1.57 -1.70 -0.01 1.63 0.37 1.90 0.33 -2.18 2.45 0.25 1.13 0.11 -2.66 0.17 -1.01 -0.73 1.18 1.81 -0.37 -0.45 -0.73 -1.83 -0.67 -0.64 0.60 -4.27 -6.30 -1.40 -9.16 -0.26 -3.03 2.18 0.31 -7.25 -1.19 0.10 0.74 0.48 0.18 2.43 -1.61 -0.75 0.61 1.73 -0.04 2.76 0.00 -1.51 0.83 0.06 1.47 -0.02 -2.42 -0.01 -1.17 -0.61 1.27 1.73 -0.18 -0.47 -0.24 -0.88 -0.23 -0.56 1.93 -1.88 -3.60 DMI MACD Diff Recent Signal (40.294) SELL SELL (0.126) (0.323) 0.057 (0.876) (0.281) (0.779) 0.324 (0.154) (0.076) (0.008) 0.067 0.022 0.113 0.034 (0.946) (0.620) (0.103) 0.413 (0.855) 0.325 (0.669) 1.626 0.191 (0.339) 0.139 (0.240) 0.176 0.160 (0.115) (0.092) 0.079 (0.190) 0.019 (0.498) (0.951) (0.432) (0.082) (1.329) (2.389) (2.700) SELL SELL SELL SELL BUY SELL SELL SELL SELL BUY BUY BUY BUY SELL SELL SELL BUY BUY BUY BUY SELL BUY BUY BUY SELL SELL BUY SELL SELL BUY BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL BUY SELL SELL SELL BUY BUY BUY BUY SELL SELL SELL BUY SELL BUY SELL BUY BUY SELL BUY SELL BUY BUY SELL SELL BUY SELL BUY SELL SELL SELL SELL SELL SELL SELL 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 3 of 5
92. 27-May-19 Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name IBM UN MMM UN CVX UN CAT UN MCD UN UTX UN BA UN XOM UN J NJ UN PG UN KO UN WMT UN TRV UN DWDP US GS US J PM UN AXP UN MRK UN DIS UN VZ UN HD UN UNH US T UN MS FT UW CS CO UW INTC UW PFE UN WBA US NKE US V US AIG US BAC US BP US C US LVS US MS US WFC US FB US AAPL US BABA US IBM 3M CHE VRON CATE RPILLAR MCDONALDS UNITECH BOE ING E XXON MOBIL J &J P&G COCA-COLA WAL-MART TRAVE LE RS DOWDUPONT GOLDMAN S ACHS J PMORGAN AMEX ME RCK WALT DIS NE Y VE RIZON HOME DE POT UTD HE ALTH AT&T MICROS OFT CIS CO INTE L PFIZE R WALGREE NS BOOTS NIKE INC VIS A INC AIG BANK OF AME RICA BP CITIGROUP LV S ANDS MS WE LLS FARGO FACE BOOK INC APPLE INC ALIBABA GRP Close Target Price % upside 132.39 165.87 117.87 122.26 198.97 130.45 350.55 73.79 139.79 106.76 49.85 101.86 146.94 30.94 191.97 108.64 118.43 81.02 132.73 58.87 192.00 246.50 32.14 126.18 54.19 44.53 41.92 51.61 82.64 161.51 52.20 27.76 41.34 63.90 56.97 42.71 45.56 180.87 179.66 156.00 149.11 187.94 139.41 152.35 213.83 151.23 420.96 84.97 148.47 105.88 52.02 110.45 146.00 40.26 229.25 117.82 121.33 88.13 147.28 59.67 205.03 287.72 34.31 144.00 57.25 52.45 45.79 59.33 92.40 180.92 57.00 32.86 50.32 78.93 71.75 53.80 52.05 220.57 213.50 217.09 11% 12% 15% 20% 7% 14% 17% 13% 6% -1% 4% 8% -1% 23% 16% 8% 2% 8% 10% 1% 6% 14% 6% 12% 5% 15% 8% 13% 11% 11% 8% 16% 18% 19% 21% 21% 12% 18% 16% 28% EPS ($) PER(x) Div Yield(%) 52week Price 2018 2019 2018 2019 2018 2019 High Low % Chg YTD 13.91 9.55 7.65 12.38 8.04 7.97 15.58 4.09 8.61 4.47 2.10 4.83 11.18 2.11 23.23 9.97 8.07 4.74 6.80 4.75 10.14 14.70 3.57 4.59 3.08 4.32 2.90 5.98 2.58 5.37 4.86 2.86 3.32 7.58 3.36 4.95 4.67 8.61 11.49 45.78 14.18 10.48 9.21 13.11 8.70 8.75 22.50 5.57 9.14 4.74 2.26 5.05 11.87 2.06 25.46 10.63 9.00 5.31 6.59 4.85 10.98 16.61 3.62 5.11 3.40 4.56 3.06 6.03 3.03 6.21 5.11 3.15 3.84 8.61 3.58 5.41 5.11 10.46 12.88 58.72 9.5 17.4 15.4 9.9 24.7 16.4 22.5 18.0 16.2 23.9 23.7 21.1 13.1 14.6 8.3 10.9 14.7 17.1 19.5 12.4 18.9 16.8 9.0 27.5 17.6 10.3 14.5 8.6 32.0 30.1 10.7 9.7 12.4 8.4 17.0 8.6 9.7 21.0 15.6 23.5 9.3 15.8 12.8 9.3 22.9 14.9 15.6 13.3 15.3 22.5 22.0 20.2 12.4 15.0 7.5 10.2 13.2 15.3 20.1 12.1 17.5 14.8 8.9 24.7 15.9 9.8 13.7 8.6 27.3 26.0 10.2 8.8 10.8 7.4 15.9 7.9 8.9 17.3 13.9 18.4 4.9 3.4 4.0 3.1 2.4 2.3 2.3 4.6 2.7 2.7 3.2 2.1 2.2 3.8 1.8 3.1 1.4 2.7 1.3 4.1 2.8 1.6 6.4 1.4 2.5 2.8 3.4 3.5 1.0 0.6 2.5 2.5 5.9 3.1 5.5 3.0 4.1 0.0 1.7 0.0 5.1 3.6 4.2 3.3 2.5 2.4 2.6 4.8 2.9 2.8 3.4 2.2 2.3 3.7 1.9 3.4 1.5 2.8 1.4 4.2 3.1 1.7 6.5 1.6 2.7 3.0 3.6 3.7 1.1 0.7 2.7 3.1 6.0 3.6 5.6 3.5 4.4 0.0 1.8 0.0 154.36 219.74 128.55 159.37 201.00 144.24 445.95 87.36 148.97 108.68 50.83 106.21 148.84 48.36 245.05 119.23 120.81 83.81 142.17 61.58 215.37 287.94 34.53 131.37 57.52 59.58 46.46 86.31 90.00 165.74 56.36 31.91 47.57 75.24 81.45 54.28 59.53 218.62 233.47 211.70 105.96 164.60 100.22 112.08 153.14 100.50 292.53 64.66 118.62 72.81 42.10 81.79 111.09 30.06 151.70 91.11 89.07 58.03 98.81 47.14 158.09 208.07 26.80 93.98 40.25 42.36 35.32 51.36 66.53 121.60 36.16 22.66 36.28 48.42 47.39 36.74 43.02 123.02 142.00 129.77 16.47 -12.95 8.35 -3.79 12.05 22.51 8.70 8.21 8.32 16.14 5.28 9.35 22.71 -13.95 14.92 11.29 24.24 6.03 21.05 4.71 11.74 -1.05 12.61 24.23 25.06 -5.11 -3.96 -24.47 11.46 22.41 32.45 12.66 9.02 22.74 9.45 7.72 -1.13 37.97 13.90 13.81 Note: The above data is based on Bloomberg consensus Page 4 of 5
93. 27-May-19 LIST OF RECOMMENDED BUY STOCKS FROM JANUARY 2018 TO CURRENT Stock ALIBABA ALIBABA APPLE INC AT &T INC BANK OF AMERICA BANK OF AMERICA BANK OF AMERICA BANK OF AMERICA BP PLC BP PLC BP PLC BP PLC CATERPILLAR CHEVRON CORP CITIGROUP CITIGROUP COCA-COLA COCA-COLA COCA-COLA COCA-COLA COCA-COLA EXXON MOBIL EXXON MOBIL EXXON MOBIL FACEBOOK FACEBOOK HOME DEPOT HOME DEPOT HOME DEPOT HOME DEPOT IBM INTEL CORP INTEL CORP JOHNSON & JOHNSON JOHNSON & JOHNSON JOHNSON & JOHNSON LAS VEGAS LAS VEGAS LAS VEGAS LAS VEGAS MCDONALDS MCDONALDS MCDONALDS MERCK & CO MERCK & CO MERCK & CO MORGAN STANLEY MORGAN STANLEY NIKE INC PFIZER INC PROCTER & GAMBLE UNITEDHEALTH VERIZON VERIZON VISA WAL-MART WAL-MART WAL-MART WAL-MART WALT DISNEY WALT DISNEY WALT DISNEY WALT DISNEY WALT DISNEY WALT DISNEY WELLS FARGO REC BUY Date Price 11/Oct/18 8/May/19 8/Jan/19 9/Jan/18 18/Jul/18 11/Dec/18 15/Jan/19 26/Mar/19 8/Feb/18 11/Apr/18 5/Dec/18 4/Apr/19 24/Oct/18 14/Feb/18 31/May/18 11/Jul/18 18/Jan/18 27/Feb/18 3/Jul/18 12/Sep/18 21/Feb/19 7/Feb/18 22/Nov/18 23/Apr/19 6/Sep/18 3/Apr/19 8/Mar/18 17/Jul/18 26/Feb/19 2/May/19 31/Oct/18 30/Aug/18 9/May/19 6/Feb/18 6/Jun/18 21/Aug/18 2/Aug/18 5/Sep/18 23/Oct/18 7/May/19 23/May/18 19/Sep/19 14/Feb/19 28/Feb/18 18/Apr/18 10/Apr/19 19/Jul/18 23/May/19 28/Mar/19 17/Jan/18 24/Jan/18 28/Feb/19 22/Feb/18 24/May/18 22/Mar/18 21/Feb/18 19/Apr/18 15/May/18 16/Oct/18 13/Feb/18 1/Mar/18 24/May/18 12/Jul/18 13/Feb/19 12/Mar/19 10/Oct/18 Total funds invested * Total unrealised profit Return 138.29 181.43 147.93 38.25 30.01 24.76 26.37 26.84 40.00 42.78 40.95 44.23 118.98 113.29 66.68 68.23 46.82 44.03 43.75 46.02 45.10 78.35 77.56 82.90 167.18 174.20 178.58 179.58 189.98 198.80 115.40 48.75 46.62 130.39 121.48 136.88 69.01 64.50 54.89 66.57 159.45 157.77 174.15 54.72 59.27 80.80 42.74 43.49 83.09 36.60 88.31 243.00 47.96 48.59 130.66 94.11 87.57 84.39 95.81 103.39 103.16 100.15 108.04 109.20 114.75 53.53 24-May-19 Price 156.00 156.00 179.66 32.14 27.76 27.76 27.76 27.76 41.34 41.34 41.34 41.34 122.26 117.87 63.90 63.90 49.85 49.85 49.85 49.85 49.85 73.79 73.79 73.79 180.87 180.87 192.00 192.00 192.00 192.00 132.39 44.53 44.53 139.79 139.79 139.79 56.97 56.97 56.97 56.97 198.97 198.97 198.97 81.02 81.02 81.02 42.71 42.71 82.64 41.92 106.76 246.50 58.87 58.87 161.51 101.86 101.86 101.86 101.86 132.73 132.73 132.73 132.73 132.73 132.73 45.56 Change (+/-) 17.71 (25.43) 31.73 (6.11) (2.25) 3.00 1.39 0.92 1.34 (1.44) 0.39 (2.89) 3.28 4.58 (2.78) (4.33) 3.03 5.82 6.10 3.83 4.75 (4.56) (3.77) (9.11) 13.69 6.67 13.42 12.42 2.02 (6.80) 16.99 (4.22) (2.09) 9.40 18.31 2.91 (12.04) (7.53) 2.08 (9.60) 39.52 41.20 24.82 26.30 21.75 0.22 (0.03) (0.78) (0.45) 5.32 18.45 3.50 10.91 10.28 30.85 7.75 14.29 17.47 6.05 29.34 29.57 32.58 24.69 23.53 17.98 (7.97) pct ST 12.81 (14.02) 21.45 (15.97) (7.50) 12.12 5.27 3.43 3.35 (3.37) 0.95 (6.53) 2.76 4.04 (4.17) (6.35) 6.47 13.22 13.94 8.32 10.53 (5.82) (4.86) (10.99) 8.19 3.83 7.51 6.92 1.06 (3.42) 14.72 (8.66) (4.48) 7.21 15.07 2.13 (17.45) (11.67) 3.79 (14.42) 24.79 26.11 14.25 48.06 36.70 0.27 (0.07) (1.79) (0.54) 14.54 20.89 1.44 22.75 21.16 23.61 8.24 16.32 20.70 6.31 28.38 28.66 32.53 22.85 21.55 15.67 (14.89) 6,061,060 507,970 8.38% 162.85 162.85 187.73 33.38 30.46 30.46 30.46 30.46 47.88 47.88 47.88 47.88 144.40 133.88 73.08 73.08 50.67 50.67 50.67 50.67 50.67 83.50 83.50 83.50 193.72 193.72 207.60 207.60 207.60 207.60 149.72 47.02 47.02 148.28 148.28 148.28 61.64 61.64 61.64 61.64 203.59 203.59 203.59 84.62 84.62 84.62 48.06 48.06 88.59 46.15 110.16 262.50 62.13 62.13 168.73 109.98 109.98 109.98 109.98 140.02 140.02 140.02 140.02 140.02 140.02 51.44 Upside Targets MT LT 174.37 174.37 198.49 35.39 33.05 33.05 33.05 33.05 52.80 52.80 52.80 52.80 155.43 147.69 80.70 80.70 51.95 51.95 51.95 51.95 51.95 89.32 89.32 89.32 218.52 218.52 228.46 228.46 228.46 228.46 157.88 49.98 49.98 157.45 157.45 157.45 66.19 66.19 66.19 66.19 211.46 211.46 211.46 87.75 87.75 87.75 50.73 50.73 94.57 47.54 113.29 269.12 64.41 64.41 174.04 120.52 120.52 120.52 120.52 144.24 144.24 144.24 144.24 144.24 144.24 54.28 188.64 188.64 211.81 37.01 35.63 35.63 35.63 35.63 53.09 53.09 53.09 53.09 173.26 156.24 88.31 88.31 52.98 52.98 52.98 52.98 52.98 95.14 95.14 95.14 243.32 243.32 241.37 241.37 241.37 241.37 171.07 53.65 53.65 163.12 163.12 163.12 72.03 72.03 72.03 72.03 217.82 217.82 217.82 90.87 90.87 90.87 54.03 54.03 98.28 48.93 117.16 275.81 66.26 66.26 179.34 127.05 127.05 127.05 127.05 149.47 149.47 149.47 149.47 149.47 149.47 56.57 ST 4.39 4.39 4.49 3.86 9.73 9.73 9.73 9.73 15.82 15.82 15.82 15.82 18.11 13.58 14.37 14.37 1.64 1.64 1.64 1.64 1.64 13.16 13.16 13.16 7.10 7.10 8.13 8.13 8.13 8.13 13.09 5.59 5.59 6.07 6.07 6.07 8.20 8.20 8.20 8.20 2.32 2.32 2.32 4.44 4.44 4.44 12.53 12.53 7.20 10.09 3.18 6.49 5.54 5.54 4.47 7.97 7.97 7.97 7.97 5.49 5.49 5.49 5.49 5.49 5.49 12.91 % Upside MT 11.78 11.78 10.48 10.11 19.06 19.06 19.06 19.06 27.72 27.72 27.72 27.72 27.13 25.30 26.29 26.29 4.21 4.21 4.21 4.21 4.21 21.05 21.05 21.05 20.82 20.82 18.99 18.99 18.99 18.99 19.25 12.24 12.24 12.63 12.63 12.63 16.18 16.18 16.18 16.18 6.28 6.28 6.28 8.31 8.31 8.31 18.78 18.78 14.44 13.41 6.12 9.18 9.41 9.41 7.76 18.32 18.32 18.32 18.32 8.67 8.67 8.67 8.67 8.67 8.67 19.14 LT 20.92 20.92 17.89 15.15 28.35 28.35 28.35 28.35 28.42 28.42 28.42 28.42 41.71 32.55 38.20 38.20 6.28 6.28 6.28 6.28 6.28 28.93 28.93 28.93 34.53 34.53 25.71 25.71 25.71 25.71 29.22 20.48 20.48 16.69 16.69 16.69 26.43 26.43 26.43 26.43 9.47 9.47 9.47 12.16 12.16 12.16 26.50 26.50 18.93 16.72 9.74 11.89 12.55 12.55 11.04 24.73 24.73 24.73 24.73 12.61 12.61 12.61 12.61 12.61 12.61 24.17 Upside Targets ** ST = Short Term (one month) MT = Medium Term (three months) LT = Long Term (above six months) * The portfolio assumes each position consists of 1,000 shares and no deductions for any charges, fees and commision ** Upside Targets are derived from the subsequent Fibonacci Projection levels The above table is a performance summary of our top BUY recommendations from Jan 2018 to current (sorted by name) together with upside targets, which are taken from subsequent Fibonacci Projection targets which could be achieved in one month (ST), three months (MT) and above six months (LT) from recommendation date. Interpretation: Investors should aim to take profit/sell trading positions when the percentage upside on the last three columns falls to 5% or below (shaded column). A negative percentage value indicates the upside target for the particular time-frame has been breached. Any revision in upside targets will be highlighted in bold. 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 Monday, May 27, 2019, 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 5 of 5