Bursa Malaysia Daily Market Report - 28 December

Transcription

1. Thursday , 28 December, 2017 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . H u a Y a n g Bh d : Bu y s L a n d in K a ja n g 2 . S e la n g o r P ro p e r t ie s B h d : R e su l ts D r iv e n b y A u st ra l ia n O p e r a t io n Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks (L o ca l) 2. D ai l y St o ck S cr een 3. D ai l y For ei gn T ech n i c al St o ck P i cks ( AU 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 Thusrday , 28 December 2017 For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my KLSE Market Statistics (27.12.2017) (mil) Main Market 1,439.8 Warrants 244.3 ACE Market 619.4 Bond 8.9 ETF 0.3 LEAP 0.0 Total 2,312.8 Off Market 25.4 Volume +/-chg (RMmn) 191.7 1,814.9 72.0 48.3 -19.0 125.8 1.9 1.8 -0.28 0.0 0.00 0.0 1,990.9 -74.2 75.4 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP December Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA (mn) 7.5 5.5 5.0 4.0 1.7 % chg % YTD chg 11.77 87.02 157.81 23.50 0.67 0.69 0.94 1.34 7.92 11.14 15.23 8.93 24,774.30 6,939.34 7,620.68 22,911.21 2,436.67 29,597.66 3,391.67 1,752.89 6,277.17 3,275.78 1,878.80 6,069.87 28.09 3.09 28.02 18.52 9.33 19.65 13.51 0.41 56.15 -30.34 -13.21 0.16 0.11 0.04 0.37 0.08 0.38 0.07 0.40 0.02 0.90 -0.92 -0.70 0.00 25.36 28.91 6.69 19.86 20.24 34.53 17.74 13.61 18.51 5.55 -4.59 7.13 7.64 0.50 0.72 0.35 5.58 Counter Mkt Cap. Chg (RM’mn) (RM) MAYBANK 102,831 TENAGA 85,670 PCHEM 62,400 CIMB 59,966 IHH 48,776 SIMEPLT 37,201 GENTING 35,003 HLBANK 34,162 PETGAS 33,995 MISC 32,987 0.08 0.14 0.20 0.02 0.09 0.03 0.15 0.08 0.18 0.12 Strong gains in key oil & gas heavyweights lifted the local benchmark index to a fresh three-month high Wednesday, spilling over to lower liner peers and mend sentiment on the broader market. The KLCI surged 11.77 points to close at the day's high of 1,771.76, off the opening low of 1,760.69, as gainers led losers 578 to 334 on higher turnover of 2.31bn shares worth RM1.99bn. Given renewed strength in global oil prices to the highest level in two-anda-half years, rotational buying interest is seen returning to lower-tier oil & gas related stocks and improve trading sentiment. Immediate upside hurdle for the index to challenge will be 1,782, with the double-top peak of 1,793 and 1,796 acting as major resistance. Immediate uptrend supports to watch currently are at 1,756 and 1,753, the 200 and 100-day moving average levels, with better supports from 1,736 and 1,731, the respective 50 and 30-day moving averages. The extreme oversold condition on Sapura Energy shares calls for an overdue technical rebound, with immediate resistance seen at the 176.4%FP (82sen), 86sen and 161.8%FP (93sen), while crucial supports are from the recent low of 70sen (22/12/17) and 200%FP (65sen). Hook-up technical momentum indicators on Wah Seong supports recovery upside towards the 138.2%FP (RM1.18), 150%FP (RM1.23) and 161.8%FP (RM1.27), while key uptrend supports are from RM1.07 and RM1.02, the respective 50 and 100-day moving average levels. News Bites • • Top 10 KLCI Movers Based on Mkt Cap. (RM) @ @ @ @ @ Up Down 346 229 146 74 77 30 5 1 4 1 0 0 578 335 1,771.76 12,744.10 16,957.03 1,781.50 Off Market PCHEM CHEETAH D&O LEESK GENM Review & Outlook Value Value/ +/-chg Volume 351.7 1.26 18.3 0.20 18.1 0.20 0.2 0.20 -1.01 0.00 0.00 0.00 0.86 -16.7 2.97 Vol. (mn) 11.66 10.34 8.63 6.25 3.20 2.79 1.51 1.20 1.99 1.57 • • • • • • • • • REDtone International Bhd has been appointed by the Malaysian Communications and Multimedia Commission to provide 2G and 3G public cellular services in rural areas in 8 major states of Malaysia, subject to a maximum cost of RM250.76mn. Muhibbah Engineering (M) Bhd has bagged RM70mn worth of job from Tenaga Nasional Berhad for the construction of reinforced concrete jetty and platform. Hua Yang Bhd has proposed to acquire the entire stake in a property firm called Kajang Heights Development Sdn. Bhd. for RM70mn cash. PUC Bhd has proposed to acquire a 33% stake in Pictureworks Holdings Sdn. Bhd. for RM52.8mn. Yinson Holdings Bhd is buying the remaining 49% stake in Anteros Rainbow Offshore Pte Ltd from Four Vanguard Servicos E Navegacao LDA for US$9mn. Key Alliance Group Bhd and e-money operator MRuncit Commerce Sdn. Bhd. have partnered to take advantage of the expected boom in cashless transactions. Kinsteel Bhd will be suspended with effect from Jan 5, 2018 and delisted on Jan 9, 2018 unless an appeal is submitted to Bursa Malaysia Securities Bhd on or before Jan 4, 2018. Chemical Company of Malaysia Bhd has appointed Puan Nik Fazila Nik Mohamed Shihabuddin as its new managing director. Excluding exceptional items amounting to a gain of RM35.6mn, Selangor Properties Bhd's FY17 normalised net profit of RM58.7mn came within ours but above consensus. Profit growth at Chinese industrial firms slowed to 14.9% in November vs. 25.1% in October as producer prices rebound appeared to soften. The Conference Board Consumer Confidence Index in the US decreased to 122.1 in December vs. 128.6 in November. Important Dates Exchange Rate USD/MYR 4.0662 -0.0161 ECONBHD - 1:4 Bonus Issue - BI of up to 267.5m new split shares. USD/JPY 113.26 -0.0500 1 bonus share for every 4 split shares held. EUR/USD 1.189 0.0033 ECONBHD - 1:4 Bonus Issue - BI of up to 267.5m free warrants. 1 warrant for every 4 split shares held, on the same entitlement as the bonus issue of shares. Entitlement Date: 28/12/2017. LISTING ON: 29/12/2017. Disclaimer Commodities Futures Palm Oil (RM/mt) 2,540.00 36.00 Crude Oil ($/Barrel) 59.58 -0.22 Gold ($/tr.oz.) 1,291.80 4.20 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. Thursday , December 28, 2017 FBMKLCI: 1,771.76 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks Chartist: Stephen Soo Tel: +603-2167-9607 stsoo@ta.com.my www.taonline.com.my M a r k e t V i e w Rotational Interest in Oil & Gas to Mend Sentiment Strong gains in key oil & gas heavyweights lifted the local benchmark index to a fresh threemonth high Wednesday, spilling over to lower liner peers and mend sentiment on the broader market. The KLCI surged 11.77 points to close at the day’s high of 1,771.76, off the opening low of 1,760.69, as gainers led losers 578 to 334 on higher turnover of 2.31bn shares worth RM1.99bn. Key Hurdles at 1,782, Then 1,793/1,796, Support at 1,756 Given renewed strength in global oil prices to the highest level in two-and-a-half years, rotational buying interest is seen returning to lower-tier oil & gas related stocks and improve trading sentiment. Immediate upside hurdle for the index to challenge will be 1,782, with the double-top peak of 1,793 and 1,796 acting as major resistance. Immediate uptrend supports to watch currently are at 1,756 and 1,753, the 200 and 100-day moving average levels, with better supports from 1,736 and 1,731, the respective 50 and 30-day moving averages. Bargain Sapura Energy & Wah Seong The extreme oversold condition on Sapura Energy shares calls for an overdue technical rebound, with immediate resistance seen at the 176.4%FP (82sen), 86sen and 161.8%FP (93sen), while crucial supports are from the recent low of 70sen (22/12/17) and 200%FP (65sen). Hook-up technical momentum indicators on Wah Seong supports recovery upside towards the 138.2%FP (RM1.18), 150%FP (RM1.23) and 161.8%FP (RM1.27), while key uptrend supports are from RM1.07 and RM1.02, the respective 50 and 100-day moving average levels. Asian Markets Mixed Following Wall Street’s Losses Asian stocks were mixed Wednesday in trading thinned by a holiday-shortened week, as U.S. shares offered little direction overnight. Oil prices were in focus after soaring to a more than two-year high overnight. That followed news that a crude pipeline in Libya that carried up to 100,000 barrels per day had been attacked on Tuesday, according to Reuters. U.S. crude touched USD60 a barrel after armed assailants blew up a pipeline pumping crude oil to the port of Es Sider on Tuesday. Trading was generally thin across the board in a holidayshortened week. Japan’s Nikkei share average inched up on Wednesday, with a rally in crude prices supporting oil-related shares. The Nikkei ended 0.08 percent higher at 22,911.21. In Australia, the S&P/ASX 200 was little changed at 6,069.87 as gains by gold producers were offset by moderate losses in most other sectors. Across the Korean Strait, the Kospi erased losses seen earlier in the session to finish higher by 0.38 percent at 2,436.67. Blue-chip tech stocks, which had sold off in the last session, were a bright spot. Meanwhile, Shanghai stocks suffered their biggest loss in two weeks on Wednesday amid signs of slowing economic growth and year-end liquidity tightness. The Shanghai Composite index was down 30.73 points or 0.93 percent at 3,275.40. Page 1 of 5
4. 28-Dec-17 Technology and Real Estate Sector Lift Dow Higher U .S. stocks booked slight gains Wednesday, with major indexes halting a two-day skid, as advances in some major technology and real estate offsetting declines in energy stocks. The S&P technology index was up 0.2 percent and managed to snap a five-session losing streak, it’s longest since April. The sector was buoyed by gains in Facebook, up 0.9 percent, and Microsoft, up 0.4 percent. Housing stocks also edged up by 0.1 percent after data showed contracts to buy previously owned homes edged higher in November, the latest signal the housing market may have regained some momentum. Meanwhile, oil prices dipped after hitting a near two-and-a-half-year high in the previous session, pushing down the S&P energy index by 0.3 percent. West Texas Intermediate crude lost 0.7 percent to USD59.57 a barrel, the first retreat in more than a week. ConocoPhillips, off 1.1 percent, and Chevron down 0.3 percent, were the biggest drags on the index. Trading volumes remained muted in the holiday-shortened week between Christmas and New Year. Volume on Tuesday was the thinnest of the year for a full session. The Dow Jones Industrial Average rose 28.09 points, or 0.11 percent, to 24,774.3, the S&P 500 gained 2.12 points, or 0.08 percent, to 2,682.62 and the Nasdaq Composite added 3.09 points, or 0.04 percent, to 6,939.34. 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 Thursday, December 28, 2017, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 5
5. 28-Dec-17 N e w s I n B r i e f Corporate REDtone International Bhd has been appointed by the Malaysian Communications and Multimedia Commission to provide 2G and 3G public cellular services in rural areas in 8 major states of Malaysia , subject to a maximum cost of RM250.76mn. (Bursa Malaysia) Muhibbah Engineering (M) Bhd has bagged a job from Tenaga Nasional Berhad for the construction of reinforced concrete jetty and platform for the establishment of 230kV Senibong Switching Station and 230kV Overhead Line from PMU Senibong to Senibong Switching Station in Johor Bahru for a contract sum of approximately RM70mn. The contract is scheduled to commence in 1Q2018 and is expected to be completed within 12 months. (Bursa Malaysia) Hua Yang Bhd has proposed to acquire the entire stake in a property firm called Kajang Heights Development Sdn. Bhd. for RM70mn cash. The acquisition comes with 4 parcels of freehold land measuring approximately 19.76 acres in Kajang, Selangor. The proposed acquisition will follow with a proposed mix development on the said land with an estimated GDV of RM800mn. The proposal will be funded by internally generated funds and it is expected to be completed by 1QFY19. (Bursa Malaysia/The Edge) PUC Bhd (PUC) has proposed to acquire a 33% stake in Pictureworks Holdings Sdn. Bhd. for RM52.8mn. The group stated that the exercise was part of the company's efforts to expand its revenue stream and diversify its business portfolio into the imagery capture sector. The proposal will be satisfied via a combination of issuance and allotment of new ordinary shares in PUC and cash and it is expected to be completed in 2Q2018. (Bursa Malaysia/Bernama) Yinson Holdings Bhd is buying the remaining 49% stake in Anteros Rainbow Offshore Pte Ltd (ARO) from Four Vanguard Servicos E Navegacao LDA for US$9mn (RM36.75mn). The group currently owns 51% stake in ARO, whose main activity is leasing of a floating, production, storage and offloading called Four Rainbow, which as at October 2017, was still up for redeployment opportunity. (Bursa Malaysia/The Edge) Key Alliance Group Bhd and e-money operator MRuncit Commerce Sdn. Bhd. have partnered to take advantage of the expected boom in cashless transactions amid Bank Negara Malaysia's push for businesses to go online. (Bursa Malaysia/The Edge) Kinsteel Bhd will be suspended with effect from Jan 5, 2018 as Bursa Securities has rejected its application for a further extension of time to submit its regularisation plan. The group will be delisted on Jan 9, 2018 unless an appeal is submitted to Bursa Malaysia Securities Bhd on or before Jan 4, 2018. (Bursa Malaysia/The Sun ) Chemical Company of Malaysia Bhd (CCM) has appointed Puan Nik Fazila Nik Mohamed Shihabuddin as its new managing director. She has more than 25 years of experience in the field of accounting, finance, business assurance and various corporate transactions. She joined CCM in March 2012 as Director of Finance and subsequently, she was appointed as the group chief operating officer-cum-chief financial officer on May 1, 2016. (Bursa Malaysia/The Edge) Selangor Properties Bhd’s net profit in 4QFY17 declined 64.4% YoY to RM20.44mn from RM57.4mn due to lower other operating income incurred even though quarterly revenue expanded 28.7% to RM45.23mn from RM35.14mn. For FY17, the group recorded a net profit of RM92.6mn, up 37.5% YoY from RM67.36mn due to higher revenue and investment gains during the year. Annual revenue grew 15.9% YoY to RM140.17mn from RM120.93mn due to higher revenue contribution from its property development division, as well as its operations in Australia. (Bursa Malaysia/The Edge) Page 3 of 5
6. 28-Dec-17 N e w s I n B r i e f Economy Asia Malaysia Has Lowest Poverty Rate in South-East Asia - Salleh The Central Intelligence Agency (CIA) World Factbook 2017 has reported that Malaysia’s poverty rate is the lowest among South-East Asian countries, said Communications and Multimedia Minister Datuk Seri Dr Salleh Said Keruak. He said it was just 3.8% compared to Vietnam and Indonesia (11.3%), Thailand (12.6%), Laos (22%), the Philippines (25.2%) and Myanmar (32.7%). He also said the report highlighted that Malaysia’s per capita gross domestic product was US$27,200, which was far better than those of its regional peers as Thailand (US$16,800), Indonesia (US$11,700), the Philippines (US$7,700), Vietnam (US$6,400), Myanmar (US$6,000) and Laos (US$5,700). Salleh stressed that Malaysia’s success was different from the perception of certain quarters who felt the country had been left behind, but the current data clearly showed it had achieved a level of economic growth that was very good vis-a-vis neighbouring countries. Salleh expressed confidence that through the Government’s efforts at making Malaysia a high income nation, 2018 promises a better outcome for the lives of the people. (The Star) China Industrial Profit Growth Slows as Factory Inflation Eases Profit growth at Chinese industrial firms slowed in November as producer prices rebound appeared to soften. Industrial profits rose 14.9% last month from a year earlier, compared with previously reported 25.1% in October, the statistics bureau said. Robust demand and consistent factory inflation have lifted profitability this year. That helps manufacturers pay off their debt and invest more as real corporate borrowing costs decline. Still, as factory-gate prices softens, profit growth may also be due to slow. Official year-over-year industrial profits growth is set to revert lower, but growth in reality should also trend down as we think the increase in PPI inflation has peaked. (Bloomberg) Japan Housing Starts Fall Less Than Expected in November Japan's housing starts declined at a slower-than-expected pace in November, data from the Ministry of Land, Infrastructure, Transport and Tourism showed. Housing starts fell 0.4% year-on-year in November, much slower than October's 4.8% decrease. That was also below the 2.6% drop economists had forecast. Moreover, it was the fifth successive monthly fall. Annualized housing starts climbed to 951,000 from 933,000 in the previous month. It was forecast to rise to 934,000. Data also showed that construction orders received by big 50 contractors surged 20.5% yearly in November, following a 6.7% increase in October. (RTT News) United States The Conference Board Consumer Confidence Index Declined The Conference Board Consumer Confidence Index in the US decreased in December, following a modest improvement in November. The Index now stands at 122.1, down from 128.6 in November. The Present Situation Index increased from 154.9 to 156.6, while the Expectations Index declined from 111.0 last month to 99.1 this month. The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was December 15. Consumer confidence retreated in December after reaching a 17-year high in November. The decline in confidence was fueled by a somewhat less optimistic outlook for business and job prospects in the coming months. Consumers’ assessment of current conditions, however, improved moderately. Despite the decline in confidence, consumers’ expectations remain at historically strong levels, suggesting economic growth will continue well into 2018. Consumers’ appraisal of present-day conditions was slightly more positive in December. The percentage saying business conditions are “good” increased marginally from 35.0% to 35.2%, while those saying business conditions are “bad” decreased marginally, from 12.3% to 12.1%. Consumers’ assessment of the labor market was mixed. Page 4 of 5
7. 28-Dec-17 Those claiming jobs are “plentiful” decreased from 37.5% to 35.7%, while those claiming jobs are “hard to get” also decreased, from 16.8% to 15.2% (a 16-year low). Consumers’ optimism about the short-term outlook declined sharply in December. The percentage of consumers anticipating business conditions to improve over the next six months declined from 23.1% to 20.2%, while those expecting business conditions to worsen increased from 6.7% to 9.2%. Consumers’ outlook for the job market was also less upbeat than in November. The proportion expecting more jobs in the months ahead decreased from 21.3% to 18.4%, while those anticipating fewer jobs rose from 12.1% to 16.3%. Regarding their short-term income prospects, the percentage of consumers expecting an improvement increased from 20.3% to 22.3%, while the proportion expecting a decrease also rose, from 7.6% to 8.9%. (Conference Board) U.S. Pending Home Sales Edge Higher in November Contracts to buy previously owned homes edged higher in November, boosted by job growth across a strengthening economy. The National Association of Realtors said its pending home sales index rose to a reading of 109.5, up 0.2% from October. Economists polled by Reuters had forecast pending home sales falling 0.4% last month. Pending home contracts are seen as a forward-looking indicator of the health of the housing market because they become sales one to two months later. The housing sector has regained some momentum recently after treading water for much of the year because of a lack of inventory which has driven up prices, and both labor and land shortages. The U.S. economy grew at its fastest pace in more than two years in the third quarter, powered by robust business spending, while the jobless rate in November held at a 17-year low of 4.1%. Pending sales rose 0.8% in November from the same month of 2016, the first 12-month gain since June. Contracts rose 2.5% in the South from a year earlier. Sales also increased in the Northeast and Midwest while they fell 2.3% in the West. (Reuters) Share Buy-Back: 27 December 2017 Company AJIYA E&O FITTERS GRANFLO KPJ LSTEEL MALAKOF UNIMECH Bought Back Price (RM) 1,120,000 100,000 113,000 30,000 50,000 108,000 200,000 32,000 0.59/0.585 1.42 0.40 0.24 1.00/0.985 0.515/0.51 0.90 1.03/1.01 Total Treasury Shares 0.625/0.58 2,620,000 1.42/1.41 22,643,747 0.40/0.395 28,413,000 0.235/0.23 7,970,000 1.00/0.985 16,637,000 0.53/0.485 2,760,800 0.91/0.885 1,624,400 1.03/1.01 6,273,010 Source: Bursa Malaysia Hi/Lo (RM) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 5 of 5
8. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom BETA EPS (sen) PER (X) Div Yield (%) FY17 FY18 FY17 FY18 FY17 FY18 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 27-Dec-17 AUTOMOBILE BAUTO 2.15 2.50 Buy 0.77 10.2 14.3 21.1 15.0 5.4 5.3 2.24 -4.0 1.84 16.8 MBMR 2.20 2.32 Hold 0.93 20.7 23.2 10.6 9.5 1.9 2.1 2.60 -15.4 2.01 9.5 0.9 2.8 PECCA 1.49 1.69 Buy na 7.7 11.1 19.3 13.4 3.4 3.7 1.70 -12.4 1.28 16.4 -6.3 SIME 2.25 1.97 Hold 1.37 11.8 12.0 19.1 18.8 10.2 1.3 2.55 -11.8 1.84 22.3 21.7 UMW 5.00 4.37 Sell 1.32 -0.4 19.2 na 26.0 0.0 2.0 6.08 -17.8 4.09 22.2 18.4 BANKS & FINANCIAL SERVICES ABMB 4.08 4.20 Buy 1.43 33.1 30.6 12.3 13.3 3.9 3.9 4.49 -9.1 3.62 12.7 9.7 AFFIN 2.30 2.50 Hold 0.87 23.5 24.2 9.8 9.5 3.5 3.5 2.98 -22.7 2.22 3.6 -2.9 AMBANK 4.35 5.10 Buy 1.24 43.9 48.6 9.9 9.0 4.0 4.1 5.70 -23.7 4.06 7.1 0.9 CIMB 6.50 7.00 Buy 1.62 48.7 50.9 13.3 12.8 3.8 3.9 7.08 -8.2 4.49 44.8 44.1 HLBANK 16.70 17.50 Buy 0.69 104.9 114.2 15.9 14.6 2.7 2.7 17.08 -2.2 13.04 28.1 23.7 MAYBANK 9.55 9.70 Hold 1.00 68.4 70.9 14.0 13.5 5.2 5.2 9.86 -3.1 7.75 23.2 16.5 PBBANK 20.70 23.60 Buy 0.64 137.2 142.4 15.1 14.5 2.7 2.8 21.08 -1.8 19.60 5.6 5.0 RHBBANK 5.00 5.20 Hold 1.66 50.6 52.2 9.9 9.6 3.0 3.0 5.59 -10.6 4.64 7.8 6.2 BURSA 9.91 11.10 Buy 0.85 40.2 39.0 24.6 25.4 3.4 3.4 10.98 -9.7 8.08 22.6 13.6 1.9 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 CONSTRUCTION GADANG 1.07 1.73 Buy 0.67 15.2 14.3 7.0 7.5 2.8 2.8 1.37 -21.9 1.01 5.9 GAMUDA 4.95 6.00 Buy 0.91 28.5 34.5 17.3 14.3 2.4 2.4 5.52 -10.3 4.58 8.1 3.6 IJM 3.05 2.89 Sell 0.79 15.3 13.7 20.0 22.2 2.5 3.1 3.61 -15.5 2.71 12.5 -4.7 PESONA 0.48 0.55 Buy 1.00 3.5 5.8 13.6 8.2 3.2 3.2 0.74 -35.4 0.44 9.2 -21.5 SENDAI 0.86 0.58 Sell 1.32 8.2 9.6 10.4 8.9 1.2 1.2 1.39 -38.5 0.51 69.3 48.7 SUNCON 2.41 2.65 Buy 0.51 11.3 14.7 21.3 16.4 2.3 2.3 2.44 -1.2 1.66 45.2 41.8 WCT 1.64 1.64 Hold 1.01 11.5 12.6 14.3 13.0 1.8 1.8 2.48 -33.7 1.46 12.3 -4.6 LITRAK 5.55 6.26 Hold 0.32 41.9 45.6 13.2 12.2 4.5 4.5 6.15 -9.8 5.55 0.0 -5.6 ANNJOO 3.86 4.40 Buy 1.35 41.2 45.3 9.4 8.5 4.1 5.7 3.98 -3.0 2.14 80.4 77.9 CHINHIN 1.20 1.49 Buy 1.21 5.7 12.4 21.0 9.6 2.5 4.2 1.49 -19.5 0.86 40.4 37.9 ENGTEX 1.08 1.38 Buy 0.62 12.9 14.2 8.4 7.6 1.2 3.8 1.52 -28.9 1.07 0.9 -10.7 CARLSBG 15.26 18.06 Buy 0.77 79.3 86.2 19.3 17.7 5.2 5.6 16.00 -4.6 13.90 9.8 9.6 HEIM 18.82 19.14 Buy 0.46 79.6 84.0 23.6 22.4 3.8 4.0 19.58 -3.9 15.78 19.3 14.9 AEON 1.68 1.97 Sell 0.39 4.7 6.7 35.6 25.1 2.1 2.4 2.70 -37.8 1.64 2.4 -34.6 AMWAY 7.31 8.18 Buy 0.37 35.7 43.9 20.5 16.7 4.1 5.2 8.18 -10.6 7.04 3.8 -0.3 F&N 26.56 27.41 Hold 0.18 102.6 155.7 25.9 17.1 2.2 2.3 26.70 -0.5 22.64 17.3 13.1 Building Materials CONSUMER Brewery Retail HUPSENG 1.09 1.25 Hold 0.42 5.2 5.4 21.2 20.1 4.1 4.1 1.28 -14.8 1.08 0.9 -5.3 JOHOTIN 1.17 1.48 Buy 0.68 9.7 12.5 12.0 9.4 3.8 4.3 1.76 -33.5 1.16 0.9 -5.6 NESTLE 99.90 120.50 Buy 0.40 292.7 330.1 34.1 30.3 2.8 3.0 102.40 -2.4 74.12 34.8 27.7 PADINI 5.30 4.67 Sell 0.78 23.5 27.0 22.6 19.7 2.2 2.4 5.50 -3.6 2.26 134.5 108.7 POHUAT 1.80 2.35 Buy 0.72 26.2 25.3 6.9 7.1 4.4 4.4 2.07 -13.0 1.65 9.0 4.6 QL 4.32 3.26 Sell 0.28 12.1 12.8 35.8 33.7 1.0 1.0 4.39 -1.6 3.26 32.7 29.7 SIGN 0.70 0.92 Buy 1.06 6.7 6.9 10.4 10.1 3.6 3.6 1.07 -34.6 0.69 1.4 -11.9 36.30 52.08 Buy 1.28 198.6 187.4 18.3 19.4 5.5 5.5 51.04 -28.9 34.06 6.6 -17.8 GENTING 9.15 11.53 Buy 1.51 48.7 54.4 18.8 16.8 1.5 1.7 10.00 -8.5 7.70 18.9 15.2 GENM 5.63 6.51 Buy 1.61 18.7 27.0 30.0 20.8 1.4 1.6 6.38 -11.8 4.47 26.0 24.6 BJTOTO 2.25 3.34 Buy 0.79 18.3 21.5 12.3 10.5 6.2 7.1 3.01 -25.2 2.25 0.0 -24.0 LUSTER 0.11 0.15 Buy 1.98 0.4 0.4 28.9 29.1 0.0 0.0 0.16 -34.4 0.05 110.0 110.0 CCMDBIO 2.41 2.70 Buy 0.67 14.0 15.0 17.2 16.0 3.9 4.1 2.46 -2.0 1.90 26.8 21.7 IHH 5.92 6.40 Buy 0.73 6.7 11.9 87.9 49.8 0.5 0.5 6.45 -8.2 5.42 9.2 -6.8 KPJ 0.99 1.12 Buy 0.43 3.6 3.8 27.7 26.0 2.0 2.1 1.14 -13.6 0.90 9.4 -5.7 HARTA 10.78 7.30 Sell 0.89 19.4 25.8 55.6 41.8 0.8 1.1 11.40 -5.4 4.53 138.0 123.2 KOSSAN 8.11 8.80 Buy 0.20 29.1 38.3 27.9 21.2 1.8 2.4 8.50 -4.6 5.62 44.3 23.1 SUPERMX 1.98 1.80 Sell 0.34 10.2 15.3 19.3 12.9 1.6 2.6 2.18 -9.2 1.69 17.2 -6.2 TOPGLOV 7.82 7.00 Sell -0.02 26.2 33.7 29.9 23.2 1.9 2.1 8.19 -4.5 4.56 71.5 46.2 KAREX 1.32 1.00 Sell 0.41 2.8 2.8 47.3 47.8 1.5 0.5 2.52 -47.6 1.20 10.0 -44.1 SCIENTX 8.70 9.84 Buy 0.40 52.3 68.2 16.6 12.8 1.8 2.4 9.85 -11.7 6.68 30.2 29.9 SKPRES 2.20 2.20 Hold 0.50 8.3 10.4 26.6 21.2 1.9 2.4 2.32 -5.2 1.24 77.4 70.5 ASTRO 2.65 3.10 Buy 1.15 13.2 14.0 20.0 19.0 4.7 4.9 2.94 -9.9 2.45 8.2 1.9 MEDIA PRIMA 0.66 0.45 Sell 0.54 -7.6 -3.8 na na 0.0 0.0 1.28 -48.4 0.58 13.8 -42.6 STAR 1.43 1.25 Sell 0.84 5.6 6.7 25.4 21.3 29.4 8.4 2.22 -35.5 1.31 9.2 -26.6 Tobacco BAT GAMING Casino NFO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves INDUSTRIAL MEDIA
9. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom BETA EPS (sen) FY17 PER (X) Div Yield (%) FY18 FY17 FY18 FY17 FY18 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.49 0.72 Buy 1.32 3.5 4.2 14.0 11.6 2.1 2.1 0.69 -29.7 0.25 98.0 90.2 LCTITAN 4.69 6.66 Buy na 42.8 63.4 11.0 7.4 4.9 5.3 6.53 -28.2 4.14 13.3 -27.8 MHB 0.78 0.78 Sell 1.66 -2.0 -0.5 na na 0.0 0.0 1.16 -33.2 0.63 24.0 -15.3 MISC 7.39 6.56 Sell 1.07 57.2 46.8 12.9 15.8 4.1 4.1 7.90 -6.5 6.89 7.3 0.5 PANTECH 0.64 0.69 Sell 1.21 4.0 6.1 16.0 10.4 2.8 4.3 0.74 -14.2 0.44 44.3 42.7 PCHEM 7.80 8.05 Hold 0.98 52.7 49.8 14.8 15.7 2.9 2.8 7.81 -0.1 6.80 14.7 11.7 SAPNRG 0.73 1.25 Buy 2.49 6.6 -6.5 11.0 na 0.0 0.0 2.10 -65.2 0.70 4.3 -54.9 SERBADK 3.20 3.40 Hold na 22.9 25.7 14.0 12.4 2.2 2.4 3.29 -2.7 1.51 111.9 113.3 UMWOG 0.31 0.51 Buy 1.65 -1.7 0.4 na 76.7 0.0 0.0 0.92 -66.4 0.27 14.8 -63.7 UZMA 1.31 1.56 Hold 1.05 11.6 13.2 11.3 9.9 0.0 0.0 1.98 -33.8 1.27 3.1 -22.9 FGV 1.69 2.01 Hold 1.75 2.1 3.7 80.8 45.6 3.0 3.0 2.18 -22.5 1.50 12.7 9.0 IJMPLNT 2.80 2.69 Sell 0.24 12.3 9.1 22.8 30.7 2.5 2.9 3.60 -22.2 2.70 3.7 -17.6 IOICORP 4.53 4.12 Sell 1.17 17.3 21.0 26.1 21.5 2.1 3.5 4.81 -5.8 4.31 5.1 3.0 KFIMA 1.58 1.89 Buy 0.52 19.9 13.3 7.9 11.9 5.7 5.7 1.96 -19.4 1.56 1.3 -7.1 KLK 24.98 26.18 Hold 0.78 100.5 120.7 24.9 20.7 2.0 2.4 25.50 -2.0 23.00 8.6 4.1 SIMEPLT 5.47 6.25 Buy na 17.6 21.0 31.1 26.0 2.6 2.6 5.65 -3.2 4.58 19.4 -2.1 TSH 1.65 2.10 Buy 0.66 8.5 9.3 19.4 17.7 1.3 1.4 1.94 -14.9 1.56 5.8 -11.3 UMCCA 6.51 6.73 Sell 0.40 37.5 22.8 17.4 28.6 3.5 2.6 7.08 -8.1 5.67 14.8 9.0 GLOMAC 0.59 0.50 Sell 0.63 1.4 3.0 40.4 19.8 4.7 3.4 0.75 -21.5 0.58 0.9 -15.8 HUAYANG 0.61 0.59 Sell 0.78 17.3 1.8 3.5 33.1 6.6 0.8 1.21 -50.0 0.60 1.7 -46.5 IBRACO 0.88 0.92 Hold na 3.3 9.1 27.0 9.6 2.3 4.5 1.02 -13.7 0.76 16.6 -12.0 IOIPG 1.81 2.02 Hold 0.67 18.9 16.5 9.6 10.9 3.3 3.3 2.22 -18.5 1.79 1.1 -7.2 MAHSING 1.46 1.69 Buy 1.04 13.8 13.0 10.5 11.2 4.5 4.5 1.64 -11.0 1.38 5.8 2.1 SIMEPROP 1.45 1.54 Buy na 7.0 9.2 20.6 15.8 0.0 1.4 1.52 -4.6 1.04 39.4 0.0 SNTORIA 0.70 0.85 Buy 0.34 6.8 8.3 10.2 8.4 0.0 1.4 0.91 -23.6 0.60 15.8 -4.4 13.6 PLANTATIONS PROPERTY Note: SNTORIA proposed bonus issue of warrants & right issue of shares. For more details please refer to 25.09.17 SPB 5.02 5.28 Hold 0.74 17.1 21.2 29.4 23.7 2.4 2.4 5.50 -8.7 4.32 16.1 SPSETIA 3.27 3.77 Buy 0.81 21.3 21.3 15.4 15.3 3.7 3.7 4.38 -25.4 3.03 7.9 7.3 SUNWAY 1.69 1.74 Hold 0.79 11.5 11.9 14.7 14.2 3.0 3.0 1.96 -13.7 1.27 33.2 31.4 SUNREIT 1.70 1.87 Hold 0.73 9.2 10.0 18.4 16.9 5.4 5.9 1.81 -6.1 1.64 3.7 -1.2 CMMT 1.44 1.72 Buy 0.40 8.1 8.6 17.8 16.7 5.8 6.2 1.72 -16.3 1.39 3.6 -5.9 -33.9 REIT POWER & UTILITIES MALAKOF 0.91 1.16 Buy 0.66 6.3 6.0 14.4 15.1 7.7 7.7 1.42 -36.3 0.88 3.4 PETDAG 24.28 22.08 Sell 0.50 102.8 105.1 23.6 23.1 3.2 3.2 25.70 -5.5 21.00 15.6 2.0 PETGAS 17.18 19.10 Buy 0.95 89.1 98.8 19.3 17.4 3.9 4.0 21.76 -21.0 15.82 8.6 -19.3 TENAGA 15.12 17.38 Buy 0.69 131.6 129.9 11.5 11.6 3.0 3.0 15.68 -3.6 13.00 16.3 8.8 YTLPOWR 1.28 1.17 Sell 0.81 8.2 9.7 15.6 13.3 3.9 3.9 1.50 -14.7 1.11 15.3 -12.4 TELECOMMUNICATIONS AXIATA 5.38 5.75 Hold 1.33 14.3 16.0 37.6 33.6 1.3 1.5 5.47 -1.6 4.24 26.9 14.0 DIGI 4.81 5.20 Buy 0.78 19.5 20.0 24.6 24.1 4.1 4.2 5.19 -7.3 4.36 10.3 -0.4 MAXIS 5.99 6.10 Hold 0.74 26.0 26.2 23.1 22.8 3.3 3.3 6.60 -9.2 5.48 9.3 0.2 TM 6.19 7.20 Buy 0.62 22.6 23.2 27.4 26.7 3.3 3.4 6.69 -7.5 5.81 6.5 4.0 ELSOFT 2.71 2.70 Hold 0.62 11.3 15.0 24.0 18.1 2.9 3.9 2.95 -8.1 1.36 98.6 93.0 IRIS 0.18 0.25 Buy 1.84 -1.3 0.6 na 32.5 0.0 0.0 0.22 -18.2 0.11 71.4 63.6 INARI 3.42 3.05 Hold 0.97 11.2 14.2 30.6 24.1 2.9 2.9 3.48 -1.7 1.61 112.9 106.4 MPI 12.78 15.40 Hold 0.50 89.5 105.5 14.3 12.1 2.1 2.5 14.52 -12.0 7.38 73.2 72.5 UNISEM 3.53 3.85 Sell 1.10 23.5 27.1 15.0 13.0 3.4 3.4 4.25 -16.9 2.32 52.2 49.6 TECHNOLOGY Semiconductor & Electronics TRANSPORTATION Airlines AIRASIA 3.30 3.83 Buy 1.09 53.1 38.3 6.2 8.6 1.2 1.5 3.59 -8.1 2.16 52.8 44.1 AIRPORT 8.70 8.47 Sell 1.31 19.6 19.7 44.4 44.1 1.1 1.1 9.45 -7.9 5.91 47.2 43.6 Freight & Tankers PTRANS 0.29 0.44 Buy na 2.1 2.3 14.1 12.7 2.4 2.4 0.38 -24.0 0.14 105.8 99.4 TNLOGIS 1.31 1.80 Buy 1.18 12.0 13.6 10.9 9.6 3.3 3.8 1.83 -28.5 1.29 1.6 -16.0 WPRTS 3.73 4.06 Buy 0.88 17.1 16.8 21.8 22.2 3.4 3.4 4.36 -14.4 3.34 11.7 -13.3 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) Recom Beta EPS (cent) PER (X) Div Yield (%) FY17 FY18 FY17 FY18 FY17 FY18 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 24.88 23.30 Sell 1.25 172.7 189.1 14.4 13.2 2.4 2.4 -1.9 17.2 45.07 43.5 0.0 OCBC 12.31 13.50 Buy 1.20 95.5 104.0 12.9 11.8 5.7 6.7 -2.2 8.9 8.84 38.0 0.0 UOB 26.20 26.90 Hold 1.07 200.8 215.4 13.0 12.2 2.7 2.7 -2.4 20.1 30.67 28.4 0.0 PLANTATIONS WILMAR 3.09 3.63 Hold 0.85 25.6 29.9 12.1 10.3 2.3 2.6 -22.8 3.1 0.98 -13.9 0.0 IFAR 0.39 0.53 Hold 0.98 4.9 5.2 7.9 7.4 3.1 3.3 -33.6 0.4 5.48 -26.7 0.0 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.
10. COMPANY UPDATE Thursday , December 28, 2017 FBMKLCI: 1,771.76 Sector: Property THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM0.59 (-2.9%) Hua Yang Bhd Last Traded: RM0.60 Buys Land in Kajang Thiam Chiann Wen Sell Tel: +603-2167 9615 cwthiam@ta.com.my Acquiring Kajang Heights Development S/B for RM70mn Hua Yang has signed a conditional share sale agreement to acquire the entire paid up share capital of Kajang Heights Development S/B (Kajang Heights) for a total cash consideration of RM70.0mn. According to announcement, Kajang Heights is principally involved in property development and owns 4 parcels of freehold land, measuring 19.8 acres. The proposed acquisition is expected to be completed by 1QFY19 (or 4QCY18). The land is located in south Klang Valley between Kajang and Bandar Baru Bangi and also adjacent to Kajang 2 Development. It is accessible through Jalan Reko via Kajang SILK Highway. In addition, the land is about 2km from the future transportation terminal (Kajang Central). The Land is Slated for Mix-development Worth RM800mn GDV Based on preliminary plan, the land will be developed into a mix-development, which will feature service apartments, retail units and affordable houses. The proposed development is expected to generate a potential GDV of RM800mn. In line with the group’s commitment in providing affordable housing, it intends to launch affordable homes which priced at below RM500k/unit (indicative selling price psf at RM400). A Bargain Purchase The purchase consideration of RM70.0mn would translate to acquisition cost of RM81.32 psf. We deem it as a bargain purchase, if we compare it to ~RM270 psf that Aspen and Sunway paid to acquire freehold land in the vicinity few months ago. In addition, the land cost only represents 9% of the total GDV. Table 1: Recent Transaction in Kajang Land Size (Sq Ft) 247,075 Tenure Freehold Price (RM mn) 66.7 Aspen 230,868 Freehold 63.0 272.88 Hua Yang 860,746 Freehold 70.0 81.32 Date Aug-17 Developer Sunway Sep-17 Dec-17 Price Psf (RM) 270.00 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 (%) HYB MK 5062 Main Market 352.0 213.0 1.21/0.60 286.4 50.5 0.8 Heng Holdings - 31.7 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 0.0 0.0 6.4 12.0 15.8 31.4 40.9 38.1 Sell (Maintained) Financial Indicators Net gearing (%) CFPS (sen) P/CFPS (x) ROE ROA NTA/Share (RM) Price/ NTA (x) Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth FY18 64.4 (58.4) (1.4) 1.1 0.6 1.7 0.5 FY19 67.5 (8.9) (9.3) 2.0 1.0 1.7 0.5 HUAYANG (0.8) (27.5) (42.4) (44.5) FBM KLCI 3.3 0.8 0.0 8.7 (12-Mth) Share Price relative to the FBMKLCI Source: Bursa Malaysia, Media Reports Based on the group’s net gearing of 0.7x as at end Sep 2017, this acquisition would increase the group’s net gearing to approximately 0.72x, assuming the purchase consideration to be financed entirely via borrowings. As such, we do not discount the possibility that the group will tap on equity financing to avoid overstretching its balance sheet. Source: Bloomberg Page 1 of 3
11. 28-Dec-17 Neutral on the Acquisition This latest acquisition will increase the group ’s outstanding GDV by 18% to RM5.2bn. We consider this a timely acquisition to replenish the group’s land bank in Klang Valley. Despite the bargain purchase, we are neutral on this acquisition as we understand that the project is still at a very preliminary stage and an immediate launch is unlikely. As the group’s gearing level is expected to remain elevated over the near term, high holding cost could be a concern. Note that Hua Yang’s unbilled sales amounting to RM209mn as at Sep-17 would only provide the group with less than 12 months’ of earnings visibility. Forecasts We leave our FY18-20 earnings forecasts unchanged pending completion of the acquisition. We expect meaningful contribution to commence in FY22, assuming the project is launched in FY21. Valuation No change to our target price of RM0.59/share, based on blended CY18 PE/PB of 6x/0.6x. Maintain Sell given material earnings risks come 2018- 2019 due to sluggish property sales in the past years. We believe various affordable housing schemes and easy financing to first time homebuyer offered by the government will create direct competition to affordable housing developers. Valuation Table Blended PE/PB Valuation Peers average 2018 PE The stock's 10 year average PE Premium/(discount) applied PE assumed 2018 EPS (RM) Equity value/share (RM) 14.8 Peers' average 2018 PB 6.4 The stock's 10 year average PB -6% Premium/(discount) applied 6.0 PB assumed 0.03 2018 BPS (RM) 0.18 Equity value/share (RM) Target Price (Average PE/PB) (RM) 0.59 0.7 0.8 -25% 0.6 1.66 1.00 Page 2 of 3
12. 28-Dec-17 Earnings Summary Profit & Loss (RMm) YE Mar 31 Revenue E BITDA Dep. & amortisation Net finance cos t S hare of as s ociates P BT Taxation MI Net profit Core net profit Reported E P S (diluted) Core E P S (diluted) PER GDP S Div Yield (s en) (s en) (x) (s en) (% ) Cash Flow (RMm) YE Mar 31 P BT Adjus tments Dep. & amortisation Changes in WC Operational cash flow Capex Others Investment cash flow Debt rais ed/(repaid) 2016 575.7 147.9 (2.5) (0.6) 0.0 144.8 (34.6) 0.0 110.1 110.1 31.3 31.3 1.9 3.8 6.2 2017 385.4 83.4 (1.2) (1.6) 0.0 80.6 (19.9) 0.0 60.7 60.7 17.3 17.3 3.5 4.0 6.6 2016 433.0 28.7 461.8 45.8 444.4 490.2 2017 354.8 103.6 458.4 44.7 539.8 584.5 2018f 393.6 227.3 621.0 78.9 541.8 620.7 2019f 431.4 227.3 658.7 38.6 543.8 582.4 2020F 468.1 227.3 695.5 9.7 545.9 555.6 Total assets 952.0 1,042.9 1,241.7 1,241.1 1,251.1 S T debt Other liabilities CL S hareholders ' funds LT borrowings LT liabilities Total long term Liabilities 59.0 161.0 220.1 541.7 169.9 20.3 190.2 85.7 140.4 226.1 595.2 192.7 28.8 221.6 98.2 144.5 242.7 599.9 370.2 28.8 399.1 100.4 148.8 249.2 610.1 353.0 28.8 381.8 102.7 153.1 255.8 630.7 335.7 28.8 364.6 Total Equity and Liabilities 952.0 1,042.9 1,241.7 1,241.1 1,251.1 2016 2017 2018f 2019f 2020F 3.9 63.7 (209.1) 2.1 2.2 2.3 ROE (% ) 21.9 10.7 1.1 2.0 165.7 (147.2) 9.7 16.4 29.7 ROA (% ) 11.7 6.1 0.6 1.0 1.9 (% ) (% ) 25.7 25.1 21.6 20.9 10.0 6.0 12.3 8.9 14.3 12.2 E quity raised(repaid) 0.0 0.0 Dividend Others Financial cash flow Net cash flow (34.3) 0.0 (72.5) 8.6 2016 336.8 25.0 (14.1) 0.0 (24.1) (241.2) 2017 238.5 25.0 2020F 34.5 (10.4) 3.2 Balance Sheet (RMm) YE Mar 31 F ixed as s ets Others Total Cas h Others CA 2018f 10.7 (4.3) 1.1 (30.0) (133.8) (163.8) 190.0 2019f 17.1 (5.1) 2.3 2020F 283.8 40.7 (3.2) (7.4) 4.5 34.5 (10.4) 0.0 24.2 24.2 6.9 6.9 8.8 1.0 1.7 2017 80.6 (19.9) 1.2 (60.0) (10.0) (70.0) (10.0) (RM mn) (% ) 2019f 191.6 23.6 (2.3) (7.5) 3.3 17.1 (5.1) 0.0 12.0 12.0 3.4 3.4 17.8 0.5 0.8 2016 144.8 (45.3) 2.5 (67.2) (17.4) (84.6) (38.2) Assumptions YE Mar 31 New S ales P roperty Development Margins 2018f 179.0 18.0 (1.1) (8.2) 2.1 10.7 (4.3) 0.0 6.4 6.4 1.8 1.8 33.1 0.5 0.8 Ratio YE Mar 31 Profitability ratios (30.0) (10.0) (40.0) (15.0) (30.0) (10.0) (40.0) (15.0) 0.0 0.0 0.0 Current ratio (x) 2.2 2.6 2.6 2.3 2.2 (1.8) 0.0 188.2 34.2 (1.8) 0.0 (16.8) (40.3) (3.5) 0.0 (18.5) (28.8) Quick ratio (x) 2.0 2.4 2.2 2.2 2.1 Leverag e ratios Total liabilities / equity Net debt / E quity (x) (x) 0.8 0.3 0.8 0.4 1.1 0.6 1.0 0.7 1.0 0.7 Growth ratios Revenue P retax P rofit Core net earnings Total ass ets (% ) (% ) (% ) (% ) (1.3) (5.7) (0.4) 2.5 (33.1) (44.3) (44.8) 9.5 (53.5) (86.7) (89.4) 19.1 7.0 59.2 85.7 (0.0) 48.1 102.0 102.0 0.8 2018f 220.0 9.3 2019f 300.5 11.1 2020F 377.8 13.2 E BITDA Margins P BT Margins Liquidity ratios 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 Thursday, December 28, 2017, the analyst, Thiam Chiann Wen, 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
13. RESULTS UPDATE www .bursamids.com Thursday, December 28, 2017 Sector: Property THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM5.28 (+5.2%) Selangor Properties Bhd Last Traded: RM5.02 Results Driven by Australian Operation Thiam Chiann Wen Tel: +603-2167 9615 Hold cwthiam@ta.com.my Review Excluding exceptional items amounting to a gain of RM35.6mn, Selangor Properties Bhd (SPB) reported FY17 normalised net profit of RM58.7mn. Exceptional items include the unrealised foreign exchange losses of RM17.7mn, fair value loss on financial assets of RM4.0mn, and fair value gain on investment properties of RM21.9mn. Results came within ours but above consensus, accounting for 97% and 108% of ours and consensus full-year estimates. No dividend was declared during the quarter under review. However, we expect the board to propose a final dividend of 12sen/share in Jan-18, which will be subjected to approval in an AGM to be held in Feb-18. www.taonline.com.my Stock Return Information KLCI 1,771.76 Expected Share Price Return (%) 5.2 Expected Dividend Return (%) 2.4 Expected Total Return (%) 7.6 Share Information Bloomberg Code SPR MK Stock Code 1783 Listing Main Market Issued Share (mn) 343.6 Market Cap (RMmn) 1725.0 52-wk Hi/Lo (RM) 5.50/4.32 Estimated Free Float (%) 26.4 Beta (x) SPB’s FY17 normalised net profit grew 31.0% YoY to RM58.7mn, underpinned by a revenue growth of 15.5% YoY to RM140.2mn. Segmental wise, property investment division’s normalised PBT decreased 6.0% YoY largely due to lower occupancy rates. Meanwhile, property development division’s FY17 pretax losses narrowed 5.3% YoY to RM16.6mn from RM17.6mn a year ago, as the FY16’s results were impacted by higher marketing and administrative costs arising from the official launch of Aira Residence last year. Australian operation was the star performer, with the division’s FY17 normalised PBT surged 54.8% YoY RM32.6mn. The stellar performance was mainly attributed to higher income from the residential development in Piara Waters, Perth and Point Cook in Melbourne. QoQ, the group’s 4QFY17 normalised net profit decreased 24.7% to RM13.5mn, largely due to higher effective tax rate. Nevertheless, 4QFY17 normalised PBT grew 35.2% on better performance across all the divisions, with the exception of property investment division which declined 22% due to lower occupancy. Impact We updated our earnings model to incorporate the actual FY17 results. The impact to our earnings forecasts is negligible. Outlook Going forward, Aira Residences (GDV: RM850mn), which is expected to be completed by 2021, will anchor the group’s property division earnings. As for the planned re-launch of the Bukit Permata project, management maintains the targeted launch date in the first half of 2018. However, the redevelopment of Wisma Damansara in Damansara Heights has been put under review following the recent Government's freeze on approvals for development of shopping complex, offices, serviced apartments and condominium priced above RM1.0mn each. We are not overly surprised with the decision and the outlook for the high-end condominium segment remains 0.7 3-Month Average Volume ('000) 50.0 Top 3 Shareholders (%) 68.2 Kayin Holdings Sdn Bhd Credit Suisse 4.1 Value Cap 2.1 Share Performance (%) Price Change SPB FBM KLCI 1 mth 7.5 3.3 3 mth 5.2 0.8 12 mth 12.6 8.7 Financial Info FY18 FY19 Net Cash Net Cash ROA (%) 2.4 2.9 ROE (%) 2.8 3.5 NTA/Share (RM) 7.5 7.6 Price/NTA (x) 0.7 0.7 Debt to Equity Ratio Scorecard % of FY vs. TA 97.0 Within vs. Consensus 108.0 Above (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 3
14. 28-Dec-17 lacklustre . Recall, we highlighted our concerns on the potential delays that prompted our downgrade on SPB’s rating to Hold (from Buy previously) in our 2018 strategy report. Valuation Post house-keeping, our target price is revised slightly to RM5.28 from RM5.27 previously, based on blended CY18 PE/PB ratio of 14x/1.0x. SPB’s premium valuation against its peers is justified as its prized asset in Damansara Damansara Town Centre could be easily worth RM1.1bn (representing 64% of the group’s market cap of RM1.7bn), if we benchmark it with recent transacted price. In addition, the group’s net liquid assets stand at RM782mn or a substantial RM2.28/share. This makes up 45% of the group’s market capitalisation. With a potential return of 7.6%, we maintain Hold recommendation on SPB. Valuation Table Blended PE/PB Valuation Peers average 2018 PE The stock's 10 year average PE Premium/(discount) applied PE assumed 2018 EPS (RM) Equity value/share (RM) 14.8 Peers' average 2018 PB 18.9 The stock's 10 year average PB -26% Premium/(discount) applied 14.0 PB assumed 0.22 2018 BPS (RM) 3.08 Equity value/share (RM) Target Price (Average PE/PB) (RM) 5.28 Table 1: Earnings Summary (RMmn) FYE Oct FY16 Revenue 120.9 Normalised EBITDA 80.4 Normalised EBITDA margin (%) 66.5 Depreciation and amortisation (1.3) EBIT 112.3 Normalised EBIT 79.1 Net Finance Cost (13.5) EI 33.2 Reported pretax profit 98.8 Normalised pretax profit 65.6 Reported net profit 67.4 Normalised net profit 44.7 Reported EPS (sen) 19.6 Normalised EPS (sen) 13.0 EPS growth (%) 27.4 PER (x) 38.6 GDPS (sen) 20.0 Dividend yield (%) 4.0 Core ROE (%) 1.8 FY17 140.2 94.4 67.3 (3.4) 126.6 91.0 (12.1) 35.6 114.4 78.8 92.6 58.7 26.9 17.1 31.1 29.4 12.0 2.4 2.3 FY18F 238.5 127.2 53.3 (20.2) 106.9 106.9 (11.3) 0.0 95.7 95.7 72.7 72.7 21.2 21.2 27.5 23.7 12.0 2.4 2.8 0.7 0.8 25% 1.0 7.48 7.48 FY19F 363.6 146.3 40.2 (16.4) 129.8 129.8 (11.7) 0.0 118.2 118.2 89.8 89.8 26.1 26.1 23.5 19.2 12.0 2.4 3.5 FY20F 461.7 162.7 35.2 (14.0) 148.6 148.6 (12.1) 0.0 136.6 136.6 103.8 103.8 30.2 30.2 15.6 16.6 12.0 2.4 3.9 Page 2 of 3
15. 28-Dec-17 Table 2 : 4QFY17 Results Analysis (RMmn) FYE Oct 4QFY16 3QFY17 4QFY17 QoQ (%) YoY (%) FY16 FY17 YoY (%) Turnover Property Investment Property Development Investment Holdings Australian Operation 35.3 12.1 0.0 10.5 12.7 31.9 11.6 3.0 6.2 11.1 45.2 11.7 5.8 11.7 16.0 41.9 0.7 94.4 89.2 44.6 27.9 (3.3) 0.0 11.5 25.4 121.4 48.2 0.5 32.8 40.3 140.2 47.1 14.9 29.4 48.8 15.5 (2.4) >100 (10.3) 21.0 Gross Profit Reported EBIT Net Int. Income/ (exp.) EI Reported PBT Property Investment Property Development Investment Holdings Australian Operation Others Normalised PBT Taxation Reported Net Profit Normalised Net Profit Reported EPS Core EPS (sen) GDPS (sen) 35.3 89.7 (5.6) 69.4 84.1 7.2 (9.7) 11.8 7.2 (0.0) 14.7 (26.7) 57.4 10.1 16.7 2.9 0.0 29.9 25.3 (3.2) 1.5 22.1 7.0 (3.2) 7.7 7.7 (0.0) 20.6 (2.6) 19.5 18.0 5.7 5.2 0.0 41.6 37.4 (2.7) 6.9 34.7 5.5 (5.6) 13.4 11.9 (0.0) 27.8 (14.2) 20.4 13.5 6.0 3.9 0.0 38.9 47.8 (16.2) 352.6 57.1 (22.0) 76.0 75.0 54.6 25.0 35.2 452.5 4.8 (24.7) 4.8 (24.7) 0.0 17.6 (58.4) (52.4) (90.1) (58.8) (24.4) (42.4) 14.4 64.5 66.7 88.6 (46.7) (64.4) 34.6 (64.4) 34.6 0.0 120.9 112.3 (13.5) 33.2 98.8 27.3 (17.6) 27.6 21.0 (0.2) 65.6 (31.4) 67.4 44.7 19.6 13.0 0.0 130.4 126.6 (12.1) 35.6 114.4 25.7 (16.6) 33.2 32.6 (0.1) 78.8 (21.9) 92.6 58.7 27.0 17.1 0.0 7.8 12.8 (10.1) 7.3 15.9 (6.0) (5.3) 20.3 54.8 (78.8) 20.2 (30.4) 37.5 31.0 37.5 31.0 0.0 41.7 28.5 64.5 56.4 61.5 30.0 56.3 41.8 2.2 4.9 11.7 41.1 19.8 1.5 9.3 54.0 36.9 31.8 (3.1) (26.5) 29.4 31.8 19.1 (12.7) Normalised PBT Margin (%) Normalised Net Margin (%) Effective Tax (%) 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 Thursday, December 28, 2017, 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 3 of 3
16. Thursday , 28 December, 2017 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s P ic ks 2. D ai l y St o ck S cr een Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
17. Technical View Thursday , December 28, 2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,771.76 (+11.77, +0.67%) Chartist: Stephen Soo Close Name 27/Dec FBMKLCI 1771.76 Change 11.77 Tel: +603-2167-9607 High Low 1,771.76 1,760.69 Bollinger Bands Lower Mid RSI Upper 1,700.41 1,733.73 1,767.05 14d stsoo@ta.com.my Moving Averages 10d 63.30 1,748.60 www.taonline.com.my DMI 30d 50d 1,730.32 1,736.02 DI + DI - MACD DMI ADX Diff Line Signal Diff 29.11 14.84 28.73 14.26 6.63 2.74 3.888 BUY MACD DMI MACD Recent Signal Signal Change BUY - - AFFIN 2.30 0.00 2.32 2.28 2.25 2.33 2.40 41.20 2.32 2.35 2.42 19.56 22.56 33.64 -3.00 -0.03 -0.04 0.004 SELL BUY - - ABMB 4.08 0.03 4.08 4.01 3.60 3.90 4.21 63.42 4.03 3.83 3.80 32.28 12.72 32.19 19.56 0.08 0.07 0.012 BUY BUY - - AMBANK 4.35 0.05 4.36 4.30 4.00 4.22 4.44 52.29 4.31 4.24 4.29 26.14 16.62 32.31 9.52 0.02 0.00 0.017 BUY BUY - - AXIATA 5.38 0.00 5.39 5.37 5.30 5.35 5.40 57.19 5.36 5.33 5.33 9.14 14.84 30.86 -5.69 0.02 0.01 0.002 SELL BUY - - CIMB 6.50 0.02 6.53 6.47 5.73 6.16 6.60 66.96 6.36 6.11 6.13 33.11 11.53 35.17 21.58 0.11 0.06 0.052 BUY BUY - - DIGI 4.81 -0.01 4.82 4.78 4.55 4.73 4.90 55.30 4.80 4.71 4.79 17.40 22.34 24.68 -4.95 0.02 0.00 0.015 SELL BUY - - GAMUDA 4.95 0.00 4.96 4.92 4.59 4.79 4.99 57.23 4.85 4.76 4.89 26.05 18.90 22.63 7.15 0.02 -0.02 0.036 BUY BUY - - GENTING 9.15 0.15 9.15 9.04 8.64 8.94 9.24 49.54 8.99 9.00 9.11 21.09 17.24 17.08 3.85 -0.03 -0.06 0.027 BUY BUY - - GENM 5.63 0.08 5.65 5.57 4.92 5.35 5.78 60.26 5.55 5.24 5.19 25.58 19.67 21.93 5.91 0.12 0.10 0.019 BUY BUY - - IHH 5.92 0.09 5.92 5.79 5.51 5.71 5.91 61.09 5.79 5.69 5.69 17.46 19.89 19.94 -2.43 0.05 0.03 0.018 SELL BUY - - IOICORP 4.53 -0.02 4.55 4.47 4.36 4.46 4.55 59.24 4.45 4.46 4.47 22.26 18.10 13.67 4.17 0.00 -0.01 0.010 BUY BUY - - MALAKOFF 0.91 0.01 0.91 0.89 0.87 0.91 0.95 38.90 0.90 0.94 0.97 16.20 19.20 26.60 -3.00 -0.03 -0.02 (0.010) SELL SELL - - MAXIS 5.99 -0.01 6.00 5.97 5.84 5.92 6.00 62.12 5.95 5.93 5.91 10.75 27.65 41.91 -16.90 0.02 0.01 0.007 SELL BUY - - MAYBANK 9.55 0.08 9.55 9.46 9.10 9.35 9.60 61.92 9.45 9.30 9.29 32.11 11.65 41.04 20.46 0.06 0.04 0.019 BUY BUY - - MBSB 1.05 0.00 1.07 1.04 1.00 1.06 1.12 44.02 1.04 1.08 1.09 20.21 16.29 15.02 3.92 -0.02 -0.02 0.003 BUY BUY - - RHBBANK 5.00 0.04 5.02 4.95 4.70 4.90 5.10 52.70 4.95 4.88 4.93 21.06 21.68 18.64 -0.62 0.02 0.01 0.010 SELL BUY - - SIME 2.25 0.05 2.27 2.19 1.97 2.14 2.30 60.31 2.10 2.11 2.10 34.51 13.81 18.30 20.71 0.00 0.01 (0.001) BUY SELL - - 15.12 0.14 15.20 14.98 14.77 15.31 15.84 42.21 15.18 15.15 14.94 22.73 24.25 33.49 -1.52 0.01 0.09 (0.086) SELL SELL - - TM 6.19 -0.06 6.25 6.18 5.84 6.09 6.34 55.39 6.14 6.07 6.11 30.34 8.06 24.55 22.29 0.03 0.00 0.029 BUY BUY - - WPRTS 3.73 0.01 3.73 3.63 3.35 3.53 3.72 57.50 3.59 3.56 3.63 25.86 15.16 16.29 10.70 0.01 -0.02 0.029 BUY BUY - - AIRASIA 3.30 0.01 3.34 3.30 3.07 3.23 3.39 53.27 3.29 3.22 3.27 19.30 12.13 22.70 7.17 0.02 0.01 0.013 BUY BUY - - AIRASIA X 0.33 0.01 0.33 0.33 0.32 0.34 0.35 33.95 0.33 0.35 0.36 5.89 24.61 50.47 -18.73 -0.01 -0.01 0.000 SELL BUY - - ARMADA 0.76 0.01 0.77 0.75 0.73 0.74 0.76 54.62 0.74 0.75 0.75 23.54 17.68 15.27 -5.25 0.00 0.00 0.001 SELL BUY - BUY TENAGA BINAPURI 0.34 0.00 0.34 0.34 0.33 0.34 0.35 42.99 0.34 0.35 0.36 14.03 19.27 19.09 -4.10 0.00 0.00 0.000 SELL BUY - - CMSB 3.68 0.04 3.72 3.64 3.47 3.71 3.96 44.57 3.71 3.65 3.69 24.32 28.42 21.35 12.17 0.00 0.01 (0.010) BUY SELL - - DIALOG 2.51 0.03 2.53 2.47 2.39 2.45 2.51 61.75 2.46 2.42 2.34 26.78 14.61 27.68 12.17 0.04 0.04 (0.005) BUY SELL - - ECO WORLD 1.38 0.02 1.38 1.36 1.37 1.45 1.54 29.97 1.44 1.47 1.50 14.79 31.57 22.10 -16.78 -0.03 -0.02 (0.010) SELL SELL - - EKOVEST 0.93 -0.02 0.95 0.93 0.90 0.93 0.96 50.62 0.92 0.95 1.00 26.44 17.72 34.11 8.73 -0.02 -0.02 0.006 BUY BUY BUY - GADANG 1.07 0.01 1.08 1.05 1.04 1.07 1.10 41.10 1.07 1.09 1.14 11.14 17.12 31.43 -5.98 -0.02 -0.02 0.004 SELL BUY - - HSL 1.45 0.03 1.45 1.42 1.40 1.46 1.51 39.43 1.44 1.47 1.49 20.95 18.48 13.00 ISKANDAR 1.40 0.00 1.42 1.39 1.19 1.30 1.41 65.73 1.34 1.29 1.31 33.48 2.46 -0.02 -0.02 (0.004) BUY SELL BUY - 6.75 32.76 26.72 0.03 0.01 0.016 BUY BUY - - KIMLUN 2.30 0.08 2.30 2.25 2.22 2.28 2.35 30.16 2.27 2.31 2.31 19.16 38.83 16.73 -19.67 -0.02 -0.01 (0.010) SELL SELL - - KKBE 0.99 -0.01 0.99 0.98 0.94 1.00 1.06 55.68 1.00 0.95 0.91 41.80 22.90 38.84 18.90 0.02 0.03 (0.008) BUY SELL - - MUDAJAYA 0.91 -0.02 0.93 0.91 0.85 0.94 1.04 38.62 0.91 0.98 1.07 15.03 33.62 45.90 -18.59 -0.04 -0.05 0.006 SELL BUY - - MRCB 1.13 -0.01 1.15 1.13 1.00 1.06 1.12 69.01 1.08 1.05 1.03 30.88 9.40 25.14 21.47 0.02 0.02 0.005 BUY BUY - - NAIM 1.12 0.05 1.12 1.07 1.01 1.05 1.09 49.08 1.04 1.08 1.12 34.71 16.17 26.92 18.54 -0.02 -0.03 0.006 BUY BUY - - SAPURA ENERGY 0.73 0.02 0.75 0.72 0.48 0.95 1.43 14.77 0.75 1.10 1.25 4.55 50.13 67.32 -45.57 -0.17 -0.16 (0.009) SELL SELL - - SUNCON 2.41 0.00 2.42 2.40 2.34 2.38 2.43 56.30 2.39 2.38 2.36 13.58 10.93 13.17 2.65 0.01 0.01 0.001 BUY BUY - - UEMS 1.06 0.01 1.06 1.05 0.99 1.04 1.09 49.12 1.05 1.05 1.07 19.23 14.29 18.04 4.94 0.00 -0.01 0.003 BUY BUY - - WASEONG 1.15 0.02 1.15 1.13 1.13 1.16 1.20 49.88 1.16 1.14 1.07 23.30 11.58 55.12 11.73 0.02 0.03 (0.010) BUY SELL - - WCT 1.64 0.05 1.65 1.59 1.44 1.53 1.61 53.72 1.53 1.57 1.59 33.79 13.46 19.38 20.33 -0.02 -0.03 0.015 BUY 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. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 3
18. 28-Dec-17 Technical Comments : Bargain Sapura Energy & Wah Seong The extreme oversold condition on Sapura Energy shares calls for an overdue technical rebound, with immediate resistance seen at the 176.4%FP (82sen), 86sen and 161.8%FP (93sen), while crucial supports are from the recent low of 70sen (22/12/17) and 200%FP (65sen). Hook-up technical momentum indicators on Wah Seong supports recovery upside towards the 138.2%FP (RM1.18), 150%FP (RM1.23) and 161.8%FP (RM1.27), while key uptrend supports are from RM1.07 and RM1.02, the respective 50 and 100-day moving average levels. SAPURA ENERGY RM0.73 (+0.015) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 1.37 0.92 0.47 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal Signal Change SELL Recent Signal Signal Change WAH SEONG RM RM RM SIMPLE MOVING AVERAGES 1.19 1.16 1.13 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change SELL RM1.15 (+0.02) BOLLINGER BANDS Upper Middle Lower 0.75 1.07 1.24 RM RM RM DAILY MACD 1.15 1.14 1.07 SELL Page 2 of 3
19. 28-Dec-17 Daily Money Flow of FBMKLCI 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 Name FBMKLCI AMBANK ASTRO AXIATA BAT CIMB DIGI WPRTS GENTING GENM HLBANK HLFG IHH IOICORP KLK MAYBANK MAXIS MISC PCHEM PETDAG PETGAS PPB PBBANK RHBBANK IJ M SIME TM TENAGA KLCC HAP YTLCORP (RM'mn) INF LOW OUTF LOW NET FLOW 19-Dec (6.4) (0.3) 0.4 0.4 (3.0) (8.7) 0.3 (0.1) 0.2 (0.7) (0.7) (0.0) (0.8) 1.0 (1.5) 3.1 (3.1) (0.1) (7.5) (0.5) 2.1 (8.9) 9.5 (0.1) 0.5 (2.8) (0.2) 4.9 0.3 0.1 0.3 Tel: +603-2167-9607 Total Money Flow (RM'mn) 20-Dec 21-Dec 22-Dec 17.4 (10.6) 8.2 (0.4) (0.2) 0.3 0.0 (0.0) (0.1) 0.7 3.6 0.3 (1.6) (1.5) 0.4 2.5 1.0 2.6 (0.5) 0.0 0.2 (0.1) (1.0) 0.8 (0.1) 5.4 (0.5) (7.2) (0.6) (0.2) 1.0 (12.3) (0.1) (0.1) 20.7 0.0 0.3 (0.4) (0.0) 6.1 0.1 (0.0) 0.1 (0.7) (0.1) 2.2 0.1 2.3 (0.0) 1.2 (0.0) 0.1 (0.5) 1.1 0.1 (3.9) (7.9) (0.8) 0.0 (1.8) (0.1) 0.1 (2.7) (0.5) 2.1 0.0 0.5 (0.4) 0.7 0.4 0.1 0.2 (3.7) 0.0 (0.0) 0.0 (0.1) (0.2) 3.5 0.2 (0.3) (0.5) 8.6 (0.1) (1.0) 0.0 (0.9) 0.6 (0.0) (5.2) 0.0 0.0 0.2 26-Dec 15.8 0.2 0.2 2.9 0.0 0.5 0.6 0.1 0.2 0.3 (0.6) 0.1 0.5 0.1 0.0 (3.0) 1.0 0.4 2.0 (0.1) 0.5 0.1 3.1 0.0 0.1 1.8 0.3 (0.8) 0.0 0.1 0.1 Total 5D MF 24.4 (0.5) 0.6 7.9 (5.7) (2.1) 0.4 0.3 2.9 (0.2) (3.6) 0.8 0.7 6.5 (1.9) (7.7) 1.8 0.3 (8.6) (21.2) 10.2 (8.9) 30.5 (0.1) 0.1 (3.5) (0.4) 7.2 0.4 0.6 0.3 stsoo@ta.com.my (A) (B) Prv. Chg Cur. Chg 18.8 7.6 0.5 (0.1) (0.0) 0.2 (3.3) 2.6 1.9 (0.4) 1.6 (2.1) 1.4 (0.1) 0.5 (0.3) (2.1) 0.1 0.1 0.0 (6.0) 3.1 0.1 0.1 (1.2) 0.5 0.0 0.1 (0.1) 0.1 0.2 (2.8) 2.4 (2.5) 0.1 0.2 3.5 2.4 7.4 0.4 9.3 (8.1) (0.1) 0.2 0.8 4.0 0.1 0.0 (1.0) 1.0 3.3 1.2 0.5 0.4 (7.3) 4.5 0.0 0.0 (0.5) 0.1 0.6 (0.1) 19-Dec 1,737 4.35 2.54 5.35 36.10 6.25 20-Dec 1,747 4.34 2.59 5.37 35.10 6.48 4.82 3.56 8.83 5.39 16.86 17.28 5.91 4.34 24.56 9.49 5.93 7.12 7.49 24.38 16.40 16.96 20.50 4.99 2.89 2.05 6.04 14.90 7.80 9.53 1.28 4.75 3.57 8.89 5.51 16.72 17.52 5.87 4.41 24.52 9.50 5.93 7.07 7.48 24.38 16.38 16.98 20.72 4.95 3.05 2.06 6.06 14.86 7.79 9.53 1.29 OUTFLOW CLOSING PRICE 21-Dec 22-Dec 1,751 1,760 4.25 4.33 2.59 2.61 5.37 5.39 35.26 36.44 6.55 6.49 4.80 3.50 8.97 5.55 16.64 17.04 5.79 4.46 24.60 9.48 5.93 7.06 7.60 24.26 16.96 16.94 20.68 4.88 2.97 2.09 6.00 14.96 7.77 9.55 1.30 4.80 3.74 9.10 5.59 16.64 17.60 5.81 4.55 24.68 9.48 6.00 7.13 7.60 24.24 17.10 16.90 20.70 4.93 2.93 2.10 6.50 14.98 7.84 9.60 1.31 26-Dec 1,760 4.30 2.64 5.38 36.08 6.48 4.82 3.72 9.00 5.55 16.62 17.58 5.83 4.55 24.84 9.47 6.00 7.27 7.60 24.26 17.00 17.58 20.70 4.96 3.00 2.20 6.25 14.98 7.79 9.62 1.30 Chg (0.25) (0.03) 0.03 (0.01) (0.36) (0.01) 0.02 (0.02) (0.10) (0.04) (0.02) (0.02) 0.02 0.00 0.16 (0.01) 0.00 0.14 0.00 0.02 (0.10) 0.68 0.00 0.03 0.07 0.10 (0.25) 0.00 (0.05) 0.02 (0.01) 23.0 37.8 14.3 18.1 15.2 9.4 (38.8) (15.8) (25.1) 12.7 (20.9) (6.6) (12.1) 6.0 (4.4) 10.8 (29.1) (19.8) Date Retail Ins titution Foreign Total 19-Dec 19.4% 63.1% 17.5% 100% 12 (18) 20-Dec 21-Dec 22-Dec 26-Dec 22.5% 16.9% 21.5% 26.7% 62.4% 61.1% 63.3% 62.3% 15.1% 22.1% 15.2% 11.0% 100% 100% 100% 100% 15 (15) 12 (18) 12 (18) 18 (12) 26 (4) (A+B) DMF IN IN IN OUT IN OUT IN IN OUT IN OUT IN OUT IN OUT OUT OUT IN IN IN IN IN IN IN OUT IN IN OUT IN OUT IN Daily Trading Participation COMPANIES INFLOW www.taonline.com.my 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 Thursday, December 28, 2017, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
20. Technical View Thursday , December 28, 2017 FBMKLCI: 1,771.76 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Stock Screen Malaysia End Day Census of 27.12.2017 Chartist: Stephen Soo Tel: +603-2167-9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful pguide for momentum trading and trading ideas .The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/ SELL) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name Price Bollinger Band Lower SUMATEC RESOURCES BHD0.05 0.04 UMW OIL & GAS CORP BHD0.31 0.28 HO WAH GENTING BHD 0.07 0.05 MLABS SYSTEMS BHD 0.09 0.06 M3 TECHNOLOGIES ASIA BHD 0.14 0.11 TH HEAVY ENGINEERING BHD 0.11 0.09 ICON OFFSHORE BHD 0.24 0.22 RGB INTERNATIONAL BHD 0.29 0.26 PRICEWORTH INTERNATIONAL 0.25 BHD 0.23 PA RESOURCES BHD 0.06 0.04 PERAK TRANSIT BHD 0.29 0.27 REACH ENERGY BHD 0.41 0.37 MANAGEPAY SYSTEMS BHD0.23 0.19 AHB HOLDINGS BHD 0.29 0.25 ADVANCE SYNERGY BHD 0.14 0.13 DUFU TECHNOLOGY CORP1.17 BHD 1.02 ASIA POLY HOLDINGS BHD0.13 0.11 ASIA MEDIA GROUP BHD 0.10 0.08 HUBLINE BHD 0.11 0.10 FOUNDPAC GROUP BHD 0.53 0.50 HOVID BHD 0.38 0.36 SKH CONSORTIUM BHD 0.09 0.07 D.B.E. GURNEY RESOURCES 0.04 BHD 0.03 TATT GIAP GROUP BHD 0.15 0.14 MMAG HOLDINGS BHD 0.20 0.18 SCOMI GROUP BHD 0.15 0.13 XOX BHD 0.11 0.10 HIAP HUAT HOLDINGS BHD0.11 0.10 BIOALPHA HOLDINGS BHD0.25 0.24 GSB GROUP BHD 0.12 0.10 RSI Moving Average Middle Upper 14-day 10-day 30-day 50-day 0.05 0.30 0.06 0.08 0.13 0.10 0.23 0.28 0.24 0.05 0.28 0.40 0.21 0.28 0.14 1.16 0.12 0.09 0.11 0.52 0.37 0.08 0.03 0.15 0.20 0.14 0.10 0.10 0.25 0.11 0.05 0.33 0.07 0.09 0.15 0.11 0.24 0.30 0.26 0.07 0.29 0.42 0.24 0.31 0.14 1.29 0.12 0.10 0.12 0.54 0.38 0.09 0.04 0.15 0.21 0.16 0.11 0.11 0.25 0.12 53.02 55.64 65.86 53.84 55.80 52.66 47.94 52.87 50.37 54.42 52.88 50.34 51.97 55.33 50.56 44.59 49.80 62.61 46.34 50.26 62.72 63.41 53.63 50.56 48.77 51.01 48.59 48.76 51.00 57.43 0.05 0.29 0.06 0.08 0.14 0.10 0.23 0.28 0.25 0.06 0.28 0.39 0.22 0.27 0.14 1.16 0.12 0.09 0.10 0.52 0.38 0.08 0.03 0.14 0.19 0.14 0.11 0.10 0.25 0.11 0.05 0.30 0.06 0.08 0.13 0.11 0.24 0.28 0.24 0.05 0.29 0.42 0.22 0.28 0.14 1.22 0.12 0.09 0.11 0.52 0.37 0.08 0.03 0.15 0.20 0.14 0.11 0.11 0.25 0.12 0.05 0.31 0.06 0.09 0.14 0.10 0.26 0.29 0.25 0.06 0.30 0.42 0.23 0.29 0.14 1.30 0.15 0.09 0.13 0.54 0.37 0.08 0.03 0.16 0.22 0.15 0.11 0.11 0.25 0.12 Vol 71,034,800 46,500,200 29,446,700 18,864,600 10,819,800 8,334,000 7,919,900 7,608,800 6,293,600 6,035,300 5,858,400 5,563,400 4,711,800 4,449,800 4,396,000 4,297,900 4,036,600 4,031,100 2,952,700 2,900,500 2,772,000 2,718,800 2,374,000 2,298,100 2,193,900 2,083,000 1,889,800 1,832,400 1,781,200 1,663,000 20-day avg vol 7,679,640 28,338,700 8,133,500 8,417,290 6,189,195 4,967,260 1,757,535 6,735,150 5,985,310 8,360,805 4,628,200 3,677,865 3,333,900 1,600,280 538,630 1,428,070 1,926,360 622,905 15,107,250 924,009 1,540,535 2,696,620 6,495,475 254,510 3,007,780 1,890,065 5,368,720 536,750 1,672,345 369,495 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2