Bursa Malaysia Daily Market Report - 30 January

Transcription

1. Tuesday , 30 January, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . In a r i A m e rt ro n Be rh a d : P ro p o se d O n e - f o r- T w o Bo n u s Sh a re I s su e 2 . 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 : E a rn in g s I m p ro v e Q o Q o n H ig h e r Sa l e s Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks ( L oc al ) 2. D ai l y For ei gn T ech n i c al St o ck P i cks ( A US ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
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Daily Market Commentary Tuesday , 30 January 2018 For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my KLSE Market Statistics (29.01.2018) Volume Main Market 1,959.7 60.3 Warrants 451.0 -221.9 ACE Market 584.6 -26.6 Bond 7.3 0.2 ETF 0.3 -1.1 LEAP 0.0 0.0 Total 3,002.8 Off Market 158.0 108.2 2,319.2 70.4 101.2 2.3 0.5 0.0 2,493.6 505.5 Value 94.4 -29.5 -20.3 0.8 -1.1 0.0 472.7 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP January Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA NETX TIGER TENAGA MAYBANK KENANGA CIMB ASIAPAC EAH-WD 76.0 20.0 17.5 13.8 11.9 10.5 3.3 2.5 % chg % YTD chg 16.60 68.43 -95.46 15.00 0.90 0.51 -0.55 0.81 4.10 3.87 1.60 4.87 26,439.48 7,466.51 7,671.53 23,629.34 2,598.19 32,966.89 3,577.07 1,837.49 6,680.62 3,523.00 1,919.80 6,075.41 -177.23 -39.27 5.99 -2.54 23.43 -187.23 9.93 8.61 20.00 -35.13 -30.41 25.39 -0.67 -0.52 0.08 -0.01 0.91 -0.56 0.28 0.47 0.30 -0.99 -1.56 0.42 6.96 8.16 -0.21 3.80 5.30 10.19 5.12 4.78 5.11 6.53 1.08 0.17 0.05 0.05 15.85 10.14 0.45 7.10 0.16 0.15 Exchange Rate USD/MYR 3.8815 0.007 USD/JPY 108.73 -0.380 EUR/USD 1.240 -0.0055 Counter Mkt Cap. Chg (RM’mn) (RM) MAYBANK 110,190 PBBANK 84,567 CIMB 66,055 PCHEM 64,240 AXIATA 51,394 IHH 49,520 HLBANK 38,171 GENTING 37,031 PETGAS 36,448 GENM 31,719 0.12 0.60 0.10 0.05 0.06 0.01 0.46 0.08 0.12 0.05 While lower liners stayed in profit-taking consolidation mode on Monday, major consumer and banking stocks led gains to lift the local benchmark index to end at the highest in more than three years. The KLCI surged 16.6 points to close at the day's high of 1,870.52, off an opening low of 1,855.09, but losers beat gainers 623 to 370 on moderate turnover totaling 3bn shares worth RM2.49bn. Sustained institutional buying in core banking and consumer stocks following the quarter point interest rate hike by Bank Negara should lift the index closer to the record high. Next key resistance will be the 150%FP at 1,888, subsequent to the all-time high of 1,896 on July 2014. Immediate uptrend supports are at the rising 10-day ma now at 1,838, the mid Bollinger band at 1,826, and then 1,800 and 1,796, the breakout level. Bullish technical momentum on Axiata supports further upside bias to retest the 16/8/16 peak (RM5.99), while a convincing breakout should aim for the 123.6%FP (RM6.43) and 138.2%FP (RM6.70) going forward. Key retracement supports are from the 76.4%FR (RM5.55) and 61.8%FR (RM5.27). TM shares needs confirmed breakout above the 38.2%FR (RM6.22) to target the 50%FR (RM6.36) and 61.8%FR (RM6.48) ahead, while supports from RM5.95/5.90 and the 30/12/16 low (RM5.81) limits downside risk. News Bites • • • • Top 10 KLCI Movers Based on Mkt Cap. (RM) @ @ @ @ @ @ @ @ 387 160 71 3 2 0 623 1,870.52 13,442.93 17,323.02 1,872.00 Off Market (mn) Review & Outlook Value/ 1.18 228 0.16 117 0.17 21 0.31 4 1.75 0 0.00 0 0.83 370 3.20 Vol. (mn) 11.92 6.38 16.05 8.15 6.55 4.34 0.47 3.03 0.42 5.23 Commodities Futures Palm Oil (RM/mt) 2,520.00 39.00 Crude Oil ($/Barrel) 65.46 -0.78 Gold ($/tr.oz.) 1,338.30 -10.40 Important Dates PDZ - 4:2 Rights Issue - RI of up to 434.7m shares together with up to 325.9m free detachable warrants. 4 rights shares together with 3 warrants for every 2 existing shares held, at an issue price of RM0.10 per rights share. LISTING ON: 07/02/2018. • • • • • • • • • • • Malaysian business leaders' overall optimism surged to 6% in the fourth quarter of 2017, a sharp rebound from a negative 36% a year ago, according to Grant Thornton's quarterly business survey. The overall Malaysia property market performance is expected to remain lacklustre going into 1H2018, continuing from the weak conditions in the second half of last year, says Knight Frank Malaysia. SP Setia Bhd is raising close to RM1bn from the placement of 9.5% of its existing share capital or up to 325mn shares offered between RM3.07 to RM3.11 per share through a book building exercise. Inari Amerton Bhd is proposing a one-for-two bonus issue to be credited as fully paid-up at 10 sen per share - at an entitlement date to be determined later. Prestariang Bhd will continue to be the sole Microsoft licensing solutions provider for all government agencies after bagging a contract extension worth about RM222.6mn from the Ministry of Finance. HLT Global Bhd has entered into a conditional sale of shares agreement to acquire 55% of HL Rubber Industries Sdn Bhd issued share capital for a purchase consideration of RM33mn. Kinsteel Bhd, which has been categorised as a Practice Note 17 firm, is appealing against the court's winding-up order against it. Weida (M) Bhd and group executive chairman Datuk Lee Choon Chin, together with persons in concert via Weida Management Sdn Bhd, is offering RM2.40 per Weida shares in an attempt to take the company private. TMC Life Sciences Bhd, which is on a same-sector acquisition mode to grow its revenue, said there could be more than one deal to be sealed this year. Ingress Group plans to invest up to RM60mn to build a manufacturing plant in Gujarat, India, its second plant in the republic. SMTrack Bhd is partnering with VFTech Sdn Bhd to market and operate the latter's marine vessel fuel intelligent tracking system, which has a real-time, worldwide tracking capability. Emas Offshore Ltd is disputing claims by Perisai Petroleum Teknologi Bhd that EOL has defaulted. Malaysian Pacific Industries Berhad reported 2QFY18 net profit of RM41.2mn (+13.7% QoQ, -25.1% YoY), bringing 1HFY18's cumulative net profit to RM77.4mn (-18.2% YoY). This was within ours but below consensus' estimates. Chin Teck Plantations Bhd's net profit dropped 13.62% to RM13.59mn in its 1QFY18, dragged by foreign exchange losses and higher expenses. The Federal Reserve's preferred inflation gauge rose 0.1% in December from the previous month and 1.7% from a year earlier. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. Tuesday , January 30, 2018 FBMKLCI: 1,870.52 xx 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 KLCI Lifted by Banks and Consumer Stocks While lower liners stayed in profit-taking consolidation mode on Monday, major consumer and banking stocks led gains to lift the local benchmark index to end at the highest in more than three years. The KLCI surged 16.6 points to close at the day’s high of 1,870.52, off an opening low of 1,855.09, but losers beat gainers 623 to 370 on moderate turnover totaling 3bn shares worth RM2.49bn. Key Resistance at 1,888, Then 1,896 Sustained institutional buying in core banking and consumer stocks following the quarter point interest rate hike by Bank Negara should lift the index closer to the record high. Next key resistance will be the 150%FP at 1,888, subsequent to the all-time high of 1,896 on July 2014. Immediate uptrend supports are at the rising 10-day ma now at 1,838, the mid Bollinger band at 1,826, and then 1,800 and 1,796, the breakout level. BUY Axiata & TM Bullish technical momentum on Axiata supports further upside bias to re-test the 16/8/16 peak (RM5.99), while a convincing breakout should aim for the 123.6%FP (RM6.43) and 138.2%FP (RM6.70) going forward. Key retracement supports are from the 76.4%FR (RM5.55) and 61.8%FR (RM5.27). TM shares needs confirmed breakout above the 38.2%FR (RM6.22) to target the 50%FR (RM6.36) and 61.8%FR (RM6.48) ahead, while supports from RM5.95/5.90 and the 30/12/16 low (RM5.81) limits downside risk. Korea’s Kospi Outperform Regional Peers Asian shares traded mostly higher on Monday, tracking significant gains stateside, although greater China markets gave up early gains to trade lower in the afternoon. Stateside, stocks were given a lift on Friday on the back of expectation-topping corporate results. 82 percent of companies that have announced fourth-quarter earnings have beaten expectations, according to Thomson Reuters. Semiconductor stocks were stronger in Asia, building on Friday gains that were fueled by U.S. giant Intel’s stock surge after its fourth-quarter report. South Korea’s Kospi led gains in the region, increasing by 0.91 percent, driven by solid gains in the technology and construction sector. Over in Sydney, the S&P/ASX 200 edged up 0.42 percent, with gains seen in most sectors apart from gold producers and real estate investment trusts. Japan’s Nikkei ended flat in choppy trade with gains in cyclicals such as memory chip makers offset by weakness in shares sensitive to domestic demand, notably railroad and construction companies. The Nikkei share average ended flat at 23,629.34 after flirting in positive territory in early trade. China stocks tumbled on Monday, with the blue-chip index posting its worst day in more than two months, led by a slump in consumer and healthcare firms as investors booked profits after a recent strong rally. The Shanghai Composite index was down 34.63 points or 0.97 percent at 3,523.50. Page 1 of 6
4. 30-Jan-18 Surging Treasury Yields Rattled Wall Street The Dow Jones Industrial Average logged a triple-digit drop on Monday , its worst one-day decline in about five months, as the yield for benchmark 10-year Treasury note hit the highest level since April 2014, raising concerns higher interest rates would snuff out the bull market. The benchmark 10-year yield broke above 2.7 percent to reach its highest level since April 2014. Fears of higher inflation are sparking the sharp rise in bond rates this year. Anxiety over a coming State of the Union address from President Donald Trump set for Tuesday, an updated policy statement from the Federal Reserve on Wednesday, a monthly jobs report on Friday and corporate quarterly results throughout the week also contributed to investor jitters. Utilities, telecommunications and real estate were among the worst-performing sectors on Monday. These sectors are negatively affected by higher interest rates. The S&P technology index fell 0.9 percent and was the biggest drag on the benchmark index following Wall Street’s strongest four-week run since 2016. Shares of Apple fell 2.1 percent on news that the company will halve production of its USD999 iPhone X smartphone. The company is due to report earnings on Thursday. The Dow Jones Industrial Average fell 177.23 points, or 0.67 percent, to 26,439.48, the S&P 500 lost 19.34 points, or 0.67 percent, to 2,853.53 and the Nasdaq Composite dropped 39.27 points, or 0.52 percent, to 7,466.50. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, January 30, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 6
5. 30-Jan-18 N e w s i n B r i e f Corporate SP Setia Bhd is raising close to RM1bn from the placement of 9 .5% of its existing share capital. The placement involves an issue size of up to 325mn shares offered between RM3.07 to RM3.11 per share through a book building exercise. According to bankers, the proceeds are to used for on-going development projects and general working capital requirements (StarBiz) Lower overseas revenue and higher material costs dragged Malaysian Pacific Industries Bhd's net profit by 25% to RM41.2mn in its second quarter ended Dec 31, 2017 from RM54.98mn a year earlier. Quarterly revenue fell a slight 1.5% to RM395.25mn from RM401.41mn. Meanwhile, cumulative net profit for the first half fell 18% to RM77.44mn from RM94.7mn in 1HFY17 whereas revenue increased 3% to RM782.89mn from RM759.42mn previously (The Edge). Inari Amerton Bhd is proposing a one-for-two bonus issue to be credited as fully paid-up at 10 sen per share — at an entitlement date to be determined later. The proposed bonus issue will see Inari capitalise up to RM112.08mn from its share premium account to reward shareholders, with up to 1.12bn new shares to be issued by the company (Bursa Malaysia). Prestariang Bhd will continue to be the sole Microsoft licensing solutions provider for all government agencies after bagging a contract extension worth about RM222.6mn from the Ministry of Finance. The contract extension is for a period of three years from Feb 1, 2018 to Jan 31, 2021. The group would also be the sole Microsoft licensing solutions provider for Public Training Institute in Malaysia under the Master Licensing Agreement 3.0 contract (Bursa Malaysia). HLT Global Bhd has entered into a conditional sale of shares agreement to acquire 55% of HL Rubber Industries Sdn Bhd issued share capital. The group entered into the SSA with Suntel International Co Ltd, AXG Capital Sdn Bhd and Lee Sow Yin for the proposed acquisition of 5.78mn shares for a purchase consideration of RM33mn. The consideration would be satisfied by the issuance of 113,793,101 new ordinary shares in HLT at an issue price of RM0.29 per share (Bernama). Kinsteel Bhd which has been categorised as a Practice Note 17 firm, is appealing against the court’s winding-up order against it. The company had submitted an appeal against the decision of the winding-up order by Messrs Chooi, Saw & Lim to the High Court in Kuantan on Jan 25. To recap, in April 2016, Kinsteel was served with a writ of summons and statement of claims filed by Knusford Marketing Sdn Bhd (Bernama). Chin Teck Plantations Bhd's net profit dropped 13.62% to RM13.59mn in its first quarter ended Nov 30, 2017, from RM15.73mn a year ago, dragged by foreign exchange losses and higher expenses. Meanwhile, revenue rose a marginal 0.11% to RM42.51mn from RM42.46mn, as higher sales volume of fresh fruit bunches (FFB) and palm kernel were offset by lower average selling prices for FFB, crude palm oil, and palm kernel (Bernama). Weida (M) Bhd and group executive chairman Datuk Lee Choon Chin, together with persons in concert via Weida Management Sdn Bhd, is offering RM2.40 per Weida shares in an attempt to take the company private. Lee claims that investors are "unable to accord Weida with a valuation in line with its net assets". The offer is at a premium of 35 sen or 17.07% to Weida's last traded share price of RM2.05 — but at a 91 sen or 27.49% discount to its net asset per share of RM3.31 (StarBiz). Page 3 of 6
6. 30-Jan-18 TMC Life Sciences Bhd , which is on a same-sector acquisition mode to grow its revenue, said there could be more than one deal to be sealed this year. The company is also confident of its capability to fund potential acquisitions through numerous means available, including leveraging on its new major shareholder Rowsley Ltd (The Edge). Ingress Group plans to invest up to RM60mn to build a manufacturing plant in Gujarat, India, its second plant in the republic. The expansion was on the back of rising demand for parts and components in the country, with total industry volume expected to reach five million units this year. Ingress wants to introduce more new products to the industry and the new plant will also help increase its total production as a whole (Bernama). SMTrack Bhd is partnering with VFTech Sdn Bhd to market and operate the latter's marine vessel fuel intelligent tracking system, which has a real-time, worldwide tracking capability. Under the agreement, SMTrack and VFTech will form a 51:49 joint venture. VFTech will provide technological know-how in the maritime business while SMTrack said it would share its marketing and networking skills, and experience (Bernama). Emas Offshore Ltd (EOL) is disputing claims by Perisai Petroleum Teknologi Bhd that EOL has defaulted, according to notices received by Perisai today. The claim was used by Perisai to enforce its decision to terminate a shareholders' agreement between the two parties, and to initiate an option to instruct EOL to sell its remaining 49% stake in Emas Victoria for US$1 — which was also disputed by EOL in the notices (The Edge). Page 4 of 6
7. 30-Jan-18 N e w s I n B r i e f Economy Asia Business Leaders in Malaysia Most Optimistic Since 2014 Malaysian business leaders ' overall optimism surged to 6% in the fourth quarter of 2017, a sharp rebound from a negative 36% a year ago, according to Grant Thornton’s quarterly business survey. Country managing partner at Grant Thornton Malaysia Datuk NK Jasani said on Monday more than half of the business leaders are expecting higher profits and investing in their long-term growth. “In Malaysia, signs of confidence can be seen as the survey revealed that 62% business owners are expecting an increase in revenues, up 22%-points from Q3 of 2017,” he said. Also 44% of business owners are expecting an increase in exports for the year ahead, up 10 percentage points from Q3 2017 and this is the highest in Asean,” he said. Jasani said 58% business owners are also expecting an increase in profits, up 46 percentage points from Q3 2017 and 30% of business owners are looking to increase in selling prices, up 14%-points from Q3 2017. The International Business Report (IBR) survey, which covered 2,500 businesses in 36 economies, showed the Asean region’s optimism level was performing at its best at 58%, the highest since 2011. The survey reveals that high levels of confidence are driven particularly by surges in Indonesia, 100% and the Philippines, 86%, where optimism has risen by 12%points and 6%-points, respectively, over the same period. (The Star Online) Property Market to Remain Lacklustre in 1H2018, says Knight Frank The overall property market performance is expected to remain lacklustre going into 1H2018, continuing from the weak conditions in the second half of last year, says Knight Frank Malaysia. In its report entitled, “Real estate highlights for the second half of 2017” released on Monday, it said the property market remained weak during that period due to the oversupplied position in the main sub-sectors such as high-end residential, office and retail. The weak conditions in 2H2017 were due to oversupplied position in the main sub-sectors such as high-end residential, office and retail. The report said developers were shifting their focus to the middle-income and affordable housing segments to cater to a wider target catchment amid challenges in the high-end market. As for the tenant-favoured office market, there was mounting pressures on occupancy and rental levels as the increasing high supply pipeline continue to overshadow low absorption. (The Star Online) Singapore Producer Prices Fall in December Singapore's producer prices declined for the first time in one year in December, figures from the Department of Statistics showed Monday. The manufactured product price index dropped 0.6% YoY, reversing a 2.9% YoY rise in November. Producer prices climbed 3.8% in the whole year 2017, in contrast to a 5.5% decrease in 2016. The domestic supply price index rose 0.6% annually in December, while it edged down 0.2% from a month ago. On a monthly basis, producer prices increased 0.8% in December, extending the 1.1% rise in November. Data also revealed that import prices slid 0.5% yearly in December, following a 4.1% climb in the preceding month. Export prices declined 2.4% in December over the prior year, after a 0.8% rise in November. (RTT News) Page 5 of 6
8. 30-Jan-18 United States U .S. Consumer Spending Rose in December, Saving Rate Dipped U.S. consumer spending rose at a solid pace in December after an upwardly revised advance a month earlier as shoppers splurged during the holiday season. While incomes also rose, the saving rate fell to a fresh 12-year low. Purchases, which account for about 70% of the economy, climbed 0.4% after a revised 0.8% advance. The December gain matched the median forecast in a Bloomberg survey. Incomes also rose 0.4% as worker pay climbed the most in three months. Saving rate fell to 2.4% in December, the lowest since September 2005, from 2.5%. The Federal Reserve’s preferred inflation gauge -- tied to consumption -- rose 0.1% in December from the previous month and 1.7% from a year earlier. Inflation has mostly missed the central bank’s 2% target since 2012. Excluding food and energy, so-called core prices climbed 0.2%, matching the survey median. The core was up 1.5% from December 2016. While inflation remains below the Fed’s goal, officials are expected to keep raising rates gradually in 2018. Investors project that policy makers will raise rates three times this year, possibly starting as soon as March. Central bank officials are meeting Tuesday and Wednesday. (Bloomberg) Share Buy-Back: 29 January 2018 Company DUFU E&O GLOMAC MALAKOF SNTORIA UNIMECH YILAI Bought Back Price (RM) 116,900 15,000 90,000 487,400 200,000 2,000 5,000 1.20/1.17 1.45 0.53/0.52 0.94/0.935 0.64/0.625 1.05 0.75 Total Treasury Shares 1.20/1.16 9,431,600 1.45/1.43 24,288,747 0.535/0.52 5,428,400 0.95/0.93 7,121,800 0.64/0.61 2,101,000 1.06/1.05 6,583,410 0.75 7,911,408 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 6 of 6
9. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 29-Jan-18 AUTOMOBILE BAUTO 2.25 2.50 Buy 2,606 0.48 14.3 19.9 15.7 11.3 5.1 5.3 2.47 -8.9 1.84 22.3 MBMR 2.39 2.32 Under Review 934 0.71 23.2 23.9 10.3 10.0 1.9 2.0 2.60 -8.1 2.01 18.9 2.3 8.6 PECCA 1.52 1.86 Buy 281 na 11.1 12.5 13.6 12.2 3.6 4.0 1.70 -10.6 1.28 18.8 -1.9 SIME 2.99 1.97 Hold 20,335 1.50 12.0 12.7 25.0 23.6 1.0 1.1 3.02 -1.0 2.03 47.6 35.3 UMW 6.90 4.37 Sell 8,061 1.37 20.7 36.9 33.4 18.7 1.4 2.6 6.98 -1.1 4.70 46.8 32.7 BANKS & FINANCIAL SERVICES ABMB 4.34 4.60 Buy 6,719 1.30 30.6 35.6 14.2 12.2 3.7 3.7 4.49 -3.3 3.62 19.9 6.4 AFFIN 2.53 2.70 Hold 4,916 0.93 24.2 28.1 10.4 9.0 3.2 3.2 2.98 -15.0 2.22 13.9 9.5 AMBANK 4.82 5.50 Buy 14,528 1.36 48.6 52.0 9.9 9.3 3.7 3.7 5.70 -15.4 4.06 18.7 9.3 CIMB 7.16 7.50 Buy 66,055 1.58 50.8 56.0 14.1 12.8 4.1 3.9 7.16 0.0 4.91 45.8 9.5 HLBANK 18.66 19.30 Buy 38,171 0.71 114.2 120.9 16.3 15.4 2.4 2.4 18.68 -0.1 13.06 42.9 9.8 MAYBANK 10.20 10.50 Hold 110,190 1.05 70.9 77.7 14.4 13.1 4.9 4.9 10.24 -0.4 8.12 25.6 4.1 PBBANK 21.90 25.10 Buy 84,567 0.64 142.4 149.8 15.4 14.6 2.6 2.7 22.04 -0.6 19.66 11.4 5.4 RHBBANK 5.54 5.70 Buy 22,216 1.61 52.2 53.8 10.6 10.3 2.7 2.7 5.59 -0.9 4.71 17.6 10.8 BURSA 10.88 11.10 Buy 5,848 0.94 39.0 41.5 27.9 26.2 3.1 3.1 10.98 -0.9 8.08 34.6 7.5 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 CONSTRUCTION GADANG 1.16 1.69 Buy 766 1.09 14.3 18.2 8.1 6.4 2.6 2.6 1.37 -15.3 1.01 14.9 4.5 GAMUDA 5.20 6.00 Buy 12,772 0.85 34.5 35.7 15.1 14.6 2.3 2.3 5.52 -5.8 4.58 13.5 4.8 IJM 3.15 2.89 Sell 11,429 0.89 13.7 18.2 23.0 17.3 3.0 3.0 3.61 -12.7 2.71 16.2 3.3 PESONA 0.44 0.55 Buy 306 0.91 5.8 4.8 7.6 9.2 3.4 3.4 0.74 -40.1 0.44 1.1 -2.2 SENDAI 0.75 0.55 Sell 586 1.21 9.1 8.5 8.3 8.8 1.3 1.3 1.39 -46.0 0.51 48.5 -13.3 SUNCON 2.56 2.65 Buy 3,308 0.60 14.7 16.4 17.4 15.6 2.1 2.3 2.64 -3.0 1.68 52.4 2.0 WCT 1.63 1.64 Hold 2,293 0.95 12.6 11.2 12.9 14.6 1.8 1.8 2.48 -34.1 1.46 11.6 0.6 LITRAK 5.75 6.26 Hold 3,034 0.36 45.6 47.1 12.6 12.2 4.3 4.3 6.15 -6.5 5.40 6.5 3.6 ANNJOO 3.50 4.40 Buy 1,806 1.32 45.3 49.2 7.7 7.1 6.3 7.4 3.98 -12.1 2.27 54.2 -9.3 CHINHIN 1.15 1.36 Buy 640 1.07 12.4 12.0 9.2 9.5 4.3 5.2 1.49 -22.8 0.87 32.2 -5.0 ENGTEX 1.12 1.38 Buy 477 0.69 14.2 16.1 7.9 7.0 3.7 4.9 1.52 -26.3 1.07 4.7 1.8 CARLSBG 15.96 18.06 Buy 4,910 0.78 86.2 88.7 18.5 18.0 5.4 5.5 16.00 -0.2 13.94 14.5 4.3 HEIM 19.08 19.14 Buy 5,764 0.48 84.0 88.3 22.7 21.6 4.0 4.2 19.58 -2.6 15.78 20.9 1.0 AEON 1.64 1.97 Sell 2,303 0.38 6.7 7.7 24.5 21.3 2.4 2.7 2.70 -39.3 1.61 1.9 -6.8 AMWAY 8.05 8.18 Buy 1,323 0.43 43.9 45.2 18.3 17.8 4.7 5.0 8.18 -1.6 7.04 14.3 9.1 F&N 29.10 28.55 Hold 10,666 0.21 155.7 182.7 18.7 15.9 2.1 2.2 29.12 -0.1 22.64 28.5 7.8 Building Materials CONSUMER Brewery Retail HUPSENG 1.10 1.25 Hold 880 0.44 5.4 5.6 20.2 19.8 4.1 4.5 1.28 -14.1 1.08 1.9 0.9 JOHOTIN 1.34 1.75 Buy 416 0.75 12.8 13.5 10.5 10.0 3.7 4.0 1.76 -23.9 1.16 15.5 10.7 NESTLE 113.10 120.50 Buy 26,522 0.45 330.1 373.8 34.3 30.3 2.6 3.0 113.20 -0.1 75.40 50.0 9.6 PADINI 5.15 4.67 Sell 3,388 0.74 27.0 30.0 19.1 17.2 2.4 2.5 5.50 -6.4 2.35 119.1 -2.5 POHUAT 1.59 2.01 Buy 349 0.77 23.0 25.5 6.9 6.2 5.0 5.0 2.07 -23.1 1.49 6.7 -11.2 QL 4.79 3.26 Sell 7,771 0.43 12.8 14.7 37.4 32.5 0.9 1.0 4.84 -1.0 3.26 47.1 10.1 SIGN 0.67 0.92 Buy 152 0.91 6.9 9.2 9.6 7.2 3.8 5.3 1.07 -37.9 0.66 0.8 -5.7 33.98 52.08 Buy 9,702 1.40 187.4 175.4 18.1 19.4 5.9 5.9 51.04 -33.4 31.40 8.2 -15.1 GENTING 9.68 11.53 Buy 37,031 1.45 54.4 59.8 17.8 16.2 1.7 1.7 10.00 -3.2 8.13 19.0 5.2 GENM 5.60 6.51 Buy 31,719 1.53 27.0 30.6 20.7 18.3 1.6 1.8 6.38 -12.2 4.87 15.0 -0.5 2.31 3.34 Buy 3,112 0.71 21.5 26.0 10.7 8.9 6.9 7.8 3.00 -23.0 2.23 3.6 3.1 CCMDBIO 2.80 2.70 Buy 781 0.88 15.0 16.1 18.6 17.4 3.5 3.7 3.03 -7.6 1.97 42.1 10.7 IHH 6.01 6.40 Buy 49,520 0.76 11.9 15.0 50.6 40.2 0.5 0.6 6.35 -5.4 5.42 10.9 2.6 KPJ 0.98 1.12 Buy 4,158 0.49 3.8 4.2 25.7 23.1 2.2 2.4 1.14 -14.5 0.90 8.3 0.5 HARTA 12.14 7.30 Sell 20,066 1.19 25.8 30.5 47.1 39.8 1.0 1.1 12.18 -0.3 4.63 162.2 13.7 KOSSAN 8.74 8.80 Buy 5,589 0.48 38.3 43.0 22.8 20.3 2.2 2.5 8.79 -0.6 5.62 55.5 7.8 SUPERMX 2.28 1.80 Sell 1,495 0.74 15.3 17.9 14.9 12.7 2.3 2.7 2.50 -8.8 1.69 34.9 14.0 TOPGLOV 9.65 9.35 Sell 12,117 0.55 41.6 50.8 23.2 19.0 1.5 1.8 10.00 -3.5 4.56 111.6 20.8 KAREX 1.19 1.00 Sell 1,193 0.67 2.8 5.2 43.1 22.9 0.6 1.1 2.47 -51.8 1.17 1.7 -8.5 SCIENTX 8.92 9.84 Buy 4,361 0.65 68.2 74.9 13.1 11.9 2.4 2.9 9.85 -9.4 6.89 29.5 3.0 SKPRES 1.93 2.20 Hold 2,413 0.62 10.4 14.8 18.6 13.1 2.7 3.8 2.35 -17.9 1.24 55.6 -15.4 ASTRO 2.60 3.10 Buy 13,556 0.93 14.0 13.7 18.6 19.0 5.0 5.2 2.94 -11.6 2.45 6.1 -1.9 MEDIA PRIMA 0.68 0.45 Sell 754 1.19 -3.8 -1.7 na na 0.0 0.0 1.28 -46.9 0.58 17.2 -10.5 STAR 1.39 1.25 Sell 1,026 1.12 6.7 6.7 20.7 20.7 8.6 8.6 2.22 -37.3 1.31 6.1 -15.8 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves INDUSTRIAL MEDIA
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.50 0.72 Buy 878 1.44 4.2 4.5 11.9 11.1 2.0 2.0 0.69 -27.5 0.27 85.2 LCTITAN 5.08 6.66 Buy 11,547 na 63.4 68.2 8.0 7.5 4.9 5.3 6.53 -22.2 4.14 22.7 3.1 8.1 MHB 0.81 0.78 Sell 1,288 1.81 -0.5 0.3 na 237.2 0.0 0.0 1.16 -30.6 0.63 28.8 -2.4 MISC 7.54 6.56 Sell 33,657 1.12 46.8 52.3 16.1 14.4 4.0 4.0 7.90 -4.6 6.89 9.4 1.6 PANTECH 0.64 0.69 Buy 476 1.13 6.1 6.8 10.5 9.4 4.3 4.8 0.74 -13.5 0.45 42.2 -0.8 4.3 PCHEM 8.03 8.05 Hold 64,240 0.96 49.8 52.6 16.1 15.3 2.7 2.9 8.28 -3.0 6.80 18.1 SAPNRG 0.78 1.25 Buy 4,644 2.16 -6.5 -4.9 na na 0.0 0.0 2.10 -63.1 0.67 16.5 9.2 SERBADK 3.62 3.40 Sell 4,833 na 25.7 27.8 14.1 13.0 2.1 2.3 3.66 -1.1 1.51 139.7 11.7 UMWOG 0.34 0.51 Buy 2,752 1.74 0.4 1.2 82.9 27.0 0.0 0.0 0.70 -52.3 0.27 24.1 9.8 UZMA 1.54 1.56 Sell 493 1.02 13.1 14.2 11.8 10.8 0.0 0.0 1.98 -22.2 1.26 22.2 20.3 FGV 2.01 2.01 Sell 7,333 1.53 3.7 4.5 54.3 44.2 2.5 2.5 2.18 -7.8 1.51 33.1 18.9 IJMPLNT 2.42 2.69 Sell 2,131 0.18 9.1 12.5 26.5 19.3 3.3 3.7 3.60 -32.8 2.40 0.8 -11.7 IOICORP 4.66 4.12 Sell 29,283 0.96 21.0 21.8 22.1 21.3 3.4 3.6 4.81 -3.1 4.31 8.1 2.6 KFIMA 1.61 1.89 Buy 454 0.51 13.3 14.5 12.1 11.1 5.6 5.6 1.96 -17.9 1.56 3.2 2.5 KLK 25.26 26.18 Hold 26,901 0.73 120.7 126.3 20.9 20.0 2.4 2.5 25.50 -0.9 23.66 6.8 1.0 SIMEPLT 5.50 6.25 Buy 37,405 na 21.0 22.1 26.1 24.9 2.5 2.7 6.00 -8.3 4.58 20.1 -8.3 TSH 1.65 2.10 Buy 2,278 0.65 9.3 9.6 17.7 17.2 1.4 1.5 1.94 -14.9 1.56 5.8 0.0 UMCCA 6.45 6.73 Sell 1,352 0.34 22.8 34.8 28.3 18.5 2.6 2.8 7.08 -8.9 5.76 11.9 -0.9 GLOMAC 0.53 0.46 Sell 421 0.62 3.0 4.4 17.9 12.0 3.8 3.8 0.68 -21.7 0.52 1.9 -4.4 HUAYANG 0.61 0.58 Sell 213 0.85 0.7 3.4 92.6 17.8 0.8 0.8 1.21 -50.0 0.60 1.7 -0.8 IBRACO 0.83 0.92 Hold 410 na 9.1 12.4 9.0 6.6 4.8 6.1 0.98 -15.4 0.71 16.2 1.2 IOIPG 2.04 2.02 Hold 11,233 0.84 16.5 16.3 12.3 12.5 2.9 2.9 2.22 -8.1 1.79 14.0 10.3 MAHSING 1.45 1.69 Buy 3,520 0.95 13.0 12.6 11.1 11.5 4.5 4.5 1.64 -11.6 1.38 5.1 0.0 SIMEPROP 1.58 1.61 Sell 10,745 na 9.2 9.1 17.2 17.3 1.3 1.3 1.78 -11.2 1.04 51.9 -11.2 SNTORIA 0.64 0.76 Buy 362 0.22 8.3 8.6 7.7 7.5 1.6 1.6 0.91 -29.6 0.60 6.7 -7.9 SPB 4.88 5.28 Hold 1,677 0.66 21.2 26.1 23.1 18.7 2.5 2.5 5.50 -11.3 4.32 12.9 -0.4 SPSETIA 3.25 3.77 Buy 11,141 1.07 21.3 21.9 15.2 14.9 3.7 3.7 4.38 -25.9 3.12 4.3 -18.8 SUNWAY 1.74 1.74 Hold 8,518 0.87 11.9 12.6 14.6 13.8 2.9 3.4 1.96 -11.2 1.29 35.3 6.7 SUNREIT 1.73 1.87 Hold 5,095 0.85 10.0 10.7 17.2 16.2 5.8 6.2 1.90 -8.9 1.64 5.5 -8.9 CMMT 1.38 1.64 Buy 2,812 0.69 7.9 8.6 17.5 16.0 5.9 6.4 1.83 -24.6 1.35 2.2 -24.6 PLANTATIONS PROPERTY REIT POWER & UTILITIES MALAKOF 0.94 1.16 Buy 4,688 0.83 6.0 6.8 15.7 13.8 7.4 7.4 1.32 -28.8 0.86 9.3 -4.1 PETDAG 24.72 22.08 Sell 24,558 0.35 105.1 105.7 23.5 23.4 3.2 3.2 25.70 -3.8 21.00 17.7 1.9 PETGAS 18.42 19.10 Buy 36,448 0.83 98.8 99.5 18.6 18.5 3.7 3.8 21.04 -12.5 15.82 16.4 5.4 TENAGA 15.84 18.33 Buy 89,749 0.58 131.3 127.5 12.1 12.4 4.3 4.1 16.12 -1.7 13.00 21.8 3.8 YTLPOWR 1.28 1.17 Sell 9,950 0.79 9.6 10.1 13.3 12.7 3.9 3.9 1.50 -14.7 1.11 15.3 -0.8 TELECOMMUNICATIONS AXIATA 5.68 5.75 Hold 51,394 1.62 16.0 19.5 35.5 29.1 1.4 2.8 5.82 -2.4 4.24 34.0 3.5 DIGI 5.00 5.15 Hold 38,875 0.95 19.7 20.3 25.4 24.6 3.9 4.1 5.19 -3.7 4.36 14.7 -2.0 MAXIS 6.08 6.10 Hold 47,488 1.02 26.2 25.7 23.2 23.6 3.3 3.3 6.60 -7.9 5.48 10.9 1.2 TM 6.12 7.20 Buy 22,999 0.51 23.2 24.9 26.4 24.6 3.4 3.7 6.69 -8.5 5.85 4.6 -2.9 ELSOFT 2.71 2.70 Hold 746 0.75 15.0 15.7 18.1 17.2 3.9 4.1 2.95 -8.1 1.52 78.0 0.4 IRIS 0.22 0.25 Buy 531 2.20 0.6 0.7 38.9 32.2 0.0 0.0 0.25 -12.2 0.12 87.0 16.2 TECHNOLOGY Semiconductor & Electronics INARI 3.42 3.35 Under Review 7,051 0.97 14.2 15.9 24.1 21.5 2.9 3.3 3.82 -10.5 1.77 93.6 0.6 MPI 11.24 12.95 Under Review 2,236 0.93 78.0 89.1 14.4 12.6 2.8 2.8 14.52 -22.6 8.12 38.4 -10.9 UNISEM 3.08 3.25 Sell 2,260 1.27 27.1 28.7 11.4 10.7 3.9 3.9 4.25 -27.5 2.51 22.7 -15.6 TRANSPORTATION Airlines AIRASIA 4.21 3.83 Buy 14,069 1.31 38.3 39.8 11.0 10.6 1.2 1.4 4.30 -2.1 2.48 69.8 25.7 AIRPORT 9.06 8.47 Sell 15,032 1.42 19.7 20.1 45.9 45.0 1.1 1.3 9.45 -4.1 6.15 47.3 3.1 Freight & Tankers PTRANS 0.29 0.44 Buy 365 na 2.3 3.6 12.7 8.1 2.4 3.7 0.38 -24.0 0.15 99.4 3.6 TNLOGIS 1.21 1.80 Buy 553 1.14 13.6 14.0 8.9 8.6 4.1 4.1 1.83 -34.0 1.21 0.0 -9.7 WPRTS 3.47 4.02 Hold 11,833 0.60 15.5 20.0 22.3 17.4 3.3 4.3 4.26 -18.5 3.34 3.9 -6.2 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) Recom Market Cap. (S$m) Beta EPS (cent) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 26.59 23.30 Sell 68,007 1.24 189.1 214.6 14.1 12.4 2.3 2.3 27.4 -3.0 18.12 46.7 7.0 OCBC 13.15 13.50 Buy 55,040 1.22 104.1 110.6 12.6 11.9 6.7 7.7 13.3 -1.3 9.31 41.2 6.1 UOB 27.88 26.90 Hold 46,366 1.07 215.4 229.3 12.9 12.9 2.5 2.5 28.5 -2.0 20.38 36.8 5.4 PLANTATIONS WILMAR 3.23 3.63 Hold 20,667 0.85 29.9 31.8 10.8 10.2 2.5 2.8 4.0 -18.8 3.06 5.6 4.5 IFAR 0.41 0.53 Hold 588 1.01 5.2 5.7 7.9 7.2 3.1 3.4 0.6 -29.3 0.37 12.3 5.1 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.
11. COMPANY UPDATE Tuesday , January 30, 2018 FBMKLCI: 1,870.52 Sector: Technology THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM3.35 (-2.0%) (ex-bonus: RM2.23) Inari Amertron Berhad Last Traded: RM3.42 (ex-bonus: RM2.28) Proposed One-for-Two Bonus Share Issue Wilson Loo, CFA Tel: +603-2167 9606 Under Review wilsonloo@ta.com.my Inari proposed to undertake a one-for-two bonus share issue. In summary, the exercise is expected to enlarge the group’s share base by 50.0% to 63.1%. Overall, although the exercise would have a neutral impact on the group’s earnings, we view the proposal positively as the enlargement of its share base will bode well for the stock’s trading liquidity as well as perceived affordability. On a per share basis however, we estimate EPS to dilute by 33.3% to 38.7%. We maintain our TP of RM3.35/share – based on an unchanged PE of 22x against CY18 EPS and revise our recommendation to Under Review as we await the release of its 2QFY18 results. The News: Proposed One-for-Two Bonus Issue Inari proposed to undertake a one-for-two bonus share issue. In summary, the exercise is expected to enlarge the group’s share base by 50.0% to 63.1% (see Table 1). 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 (%) Insas Berhad - 18.4 Kumpulan Wang Persaraan - 10.3 Norges - 5.8 EPF - 5.3 Forecast Revision The higher end of the range takes into consideration adjustments for full exercise of all outstanding warrants and ESOS options prior to the proposed bonus issue. Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating The exercise is expected to be completed by 2QCY18 and is subject to the approval of Bursa Securities, shareholders and relevant authorities. Financial Indicators Table 1: Pro Forma Effects of Proposed Bonus Issue Minimum Scenario* Maximum Scenario^ No. of Shares ('000) No. of Shares ('000) As at date of a nnouncement 2,061,567 2,061,567 Adjus tment for o/s wa rra nts & ESOS opti ons 180,062 2,061,567 2,241,629 To be i s s ued purs ua nt to Propos ed Bonus Is s ue 1,030,784 1,120,815 Pos t Propos ed Bonus Is s ue 3,092,351 3,362,444 Enl a rged s ha re bas e 50.0% 63.1% *Mi ni mum Scenari o: No exerci se of outs ta ndi ng wa rra nts a nd ESOS opti ons . ^Maxi mum Scenari o: Ful l exerci s e of outs tandi ng warra nts a nd ESOS opti ons . Source: Company, TA Securities INRI MK 0166 Main Market 2061.6 7,050.6 3.82/1.77 7,887.3 54.4 1.0 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 FY18 FY19 288.8 323.5 279.0 337.2 103.5 95.9 Hold (Under Review) FY18 Net cash 14.3 23.8 22.8 31.4 0.5 7.2 FY19 Net cash 18.5 18.5 23.3 32.0 0.5 6.5 INRI 0.6 20.4 34.4 92.6 FBM KLCI 4.1 7.0 5.9 10.9 (12-Mth) Share Price relative to the FBMKLCI Our View: Positive for Stock’s Liquidity & Perceived Affordability Overall, although the exercise would have a neutral impact on the group’s earnings, we view the proposal positively as the enlargement of its share base will bode well for the stock’s trading liquidity as well as perceived affordability. In addition, we view that the exercise would entice shareholders to exercise outstanding warrants, Warrant A (2013/2018) and Warrant B (2015/2020), both of which are in-the-money. Source: Bloomberg On a per share basis however, under the minimum to maximum scenario, we estimate earnings to dilute by 33.3% to 38.7%. Page 1 of 3
12. 30-Jan-18 Valuation We maintain our TP of RM3 .35/share – based on an unchanged PE of 22x against CY18 EPS. We continue to like the group for its solid double-digit 3year earnings CAGR of 21.6%. However, we revise our recommendation to Under Review as we await the release of its 2QFY18 results. Earnings Summary P&L YE Jun 30 (RMmn) Revenue EBITDA Depreciation & amortisation Net finance cost EI PBT Taxation MI Net profit Core net profit EPS (sen) DPS (sen) Ratios YE Jun 30 Valuations PER Dividend yield PBV Profitability ratios ROAE ROAA EBITDA margin PBT margin Liquidity ratios Current ratio Quick ratio Leverage ratios Total liabilities/equity Net debt/equity Int. coverage ratio Growth ratios Sales Pretax Earnings Total assets FY16 FY17 FY18F FY19F FY20F 1,043.1 1,176.7 1,566.0 1,730.5 1,870.2 198.5 273.8 382.5 430.6 469.2 (50.3) (66.4) (73.8) (84.9) (91.3) (0.3) 3.6 0.4 0.3 1.1 5.2 30.0 0.0 0.0 1.0 153.1 241.0 309.1 346.1 380.1 (6.0) (12.4) (18.5) (20.8) (22.7) 1.2 (0.9) (1.8) (1.8) (1.9) 148.3 227.8 288.8 323.5 355.4 148.3 227.8 288.8 323.5 355.4 7.1 9.8 14.4 16.1 17.6 8.4 9.8 10.1 11.3 12.3 FY16 FY17 FY18F FY19F FY20F 48.1 2.5 10.1 34.8 2.9 7.9 23.8 2.9 7.1 21.3 3.3 6.5 19.4 3.6 5.9 24.3 17.3 19.0 14.7 29.2 21.9 23.3 20.5 31.4 22.8 24.4 19.7 32.0 23.3 24.9 20.0 31.9 23.6 25.1 20.3 3.4 2.4 2.9 2.3 2.6 1.9 2.7 2.0 2.8 2.1 0.3 (0.1) 429.8 0.4 (0.2) (57.6) 11.8 0.8 (2.8) 4.7 12.8 57.4 53.6 37.4 0.4 0.4 (0.1) (0.1) (822.0) (1,138.0) 33.1 28.3 26.8 10.6 10.5 12.0 12.0 8.2 0.3 (0.1) (347.0) 8.1 9.5 9.6 8.7 Balance Sheet YE Jun 30 (RMmn) Fixed assets Goodwill Others LT assets FY16 273.8 9.8 40.4 324.0 FY17 330.6 9.2 6.1 346.0 FY18F 406.9 9.2 6.1 422.3 FY19F 442.0 9.2 6.1 457.4 FY20F 470.7 9.2 6.1 486.1 Inventories Trade receivables Cash Others Current assets 164.6 176.4 91.0 119.7 551.8 169.0 232.1 196.5 259.7 857.4 250.6 271.9 126.5 259.7 908.6 276.9 300.4 146.0 259.7 983.0 299.2 324.7 196.5 259.7 1,080.0 Total assets 875.8 1,203.4 1,330.9 1,440.3 1,566.1 Trade payables ST borrowings Others Current liabilities 139.1 14.5 11.1 164.7 230.7 16.1 51.7 298.5 276.0 20.9 51.7 348.5 291.8 17.8 51.7 361.2 314.1 14.9 51.7 380.7 19.3 10.9 30.1 24.8 6.7 31.5 13.9 6.7 20.6 11.8 6.7 18.5 9.9 6.7 16.6 Share capital Reserves Shareholders' funds MI 95.7 588.4 684.1 (3.1) 458.7 416.9 875.5 (2.2) 458.7 503.5 962.2 (0.4) 458.7 600.6 1,059.2 1.4 458.7 706.9 1,165.5 3.3 Total liabilities and equity 875.8 1,330.9 1,440.3 1,566.1 Cash Flow YE Jun 30 (RMmn) PBT Depreciation and amortisation Net interest Other non-cash Changes in WC Tax paid Net interest Others Operational cash flow FY16 153.1 50.3 (3.0) 12.4 (28.8) (5.9) 3.0 0.4 181.3 FY17 241.0 66.4 (4.0) (6.3) 33.4 (9.4) 4.0 (0.3) 324.8 FY18F 309.1 73.8 (0.4) 0.0 (76.0) (18.5) 0.4 0.0 288.3 FY19F 346.1 84.9 (0.3) 0.0 (39.1) (20.8) 0.3 0.0 371.1 FY20F 379.1 91.3 (1.1) 0.0 (24.3) (22.7) 1.1 0.0 423.3 Capex Others Investing cash flow (127.2) 0.0 (127.1) (119.6) 0.5 (119.1) (150.0) 0.0 (150.0) (120.0) 0.0 (120.0) (120.0) 0.0 (120.0) Net share issue Dividend paid Net change in debts Others Financial cash flow 26.5 (78.8) (36.2) -13.6 (102.1) 73.2 (95.3) 7.2 -87.6 (102.4) 0.0 (202.2) (6.1) 0.0 (208.3) 0.0 (226.4) (5.2) 0.0 (231.6) 0.0 (248.1) (4.7) 0.0 (252.8) (47.9) 137.5 1.4 91.0 103.2 91.0 2.3 196.5 (70.0) 196.5 0.0 126.5 19.5 126.5 0.0 146.0 50.5 146.0 0.0 196.5 LT borrowings Others LT liabilities Net cash flow Opening cash flow Forex Closing cash flow 1,203.4 Page 2 of 3
13. 30-Jan-18 (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 Tuesday, January 30, 2018, 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
14. RESULTS UPDATE Tuesday , January 30, 2018 FBMKLCI: 1,870.52 Sector: Technology THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* M a l a y s i a n P a c i f i c I n d u s t r i e s B e r h a d TP: RM12.95 (+15.2%) Last Traded: RM11.24 Earnings Improve QoQ on Higher Sales Wilson Loo, CFA Tel: +603-2167 9606 Under Review wilsonloo@ta.com.my Review MPI reported 2QFY18 net profit of RM41.2mn (+13.7% QoQ, -25.1% YoY), bringing 1HFY18’s cumulative net profit to RM77.4mn (-18.2% YoY). This was within ours but below consensus’s estimates at 49.9% and 42.1% respectively. No dividends were declared. QoQ, earnings grew by 13.7% on the back of higher underlying sales. Despite the stronger Ringgit (+2.5% QoQ), we estimate revenue in USD to have increased by 4.5% QoQ. And this, we opine, could possibly suggest a recovery in wafer releases following supply constraints endured in recent quarters. YoY, 1HFY17’s revenue grew by 3.1% but earnings declined by 18.2% mainly due to weaker margins as a result of higher commodity prices (i.e. copper and gold). EBITDA margins declined by 4.1pp YoY to 26.3%. Net cash position improved marginally to RM547.4mn (+1.0% QoQ, +41.5% YoY). Impact We leave our earnings unchanged, pending an analyst briefing to be held later today. Outlook Revenue growth of 5.5% to 7.5% is targeted for FY18. Aspirations are to about double the automotive segment’s contributions to 50% of total revenues within 2 to 4 years. We view this positively given the segment’s high barriers to entry, stability and superior margins. Apart from the automotive segment, good traction is also seen in the industrial segment, underpinned by servers. Excitement could come in the form of potential acquisitions and increased dividends. With a sizeable net cash position of RM547.4mn, the group is on the lookout for possible local or international acquisitions, with intentions to acquire new technologies to strengthen its product portfolio. Strong cash flows with a FCFE of 100.7sen/share (FCFE yield of 9.0%) are also capable of supporting higher dividends. www.taonline.com.my Share Information Bloomberg Code MPI MK Stock Code 3867 Listing Main Market Share Cap (mn) 198.9 Market Cap (RMmn) 2,235.6 52-wk Hi/Lo (RM) 14.52/8.12 12-mth Avg Daily Vol ('000 shrs) 294.5 Estimated Free Float (%) 35.6 Beta 0.9 Major Shareholders (%) Hong Leong Co Malaysia Bhd - 52.5 Forecast Revision Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 155.1 177.3 183.9 197.9 84.3 89.6 Hold (Under Review) Financial Indicators Net gearing (x) CFPS (sen) P/CFPS (x) ROAA (%) ROAE (%) NTA/Share (RM) Price/ NTA (x) FY18 Net cash 210.2 5.9 9.2 13.3 5.8 2.1 FY19 Net cash 187.8 6.6 9.8 14.0 6.3 2.0 % of FY 49.9 42.1 Within Below MPI (10.9) (19.1) (21.0) 37.9 FBM KLCI 4.1 7.0 5.9 10.9 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 Valuation We value MPI at an unchanged TP of RM12.95/share – based on an EV/EBITDA multiple of 6.0x and CY18 EBITDA. We revise our call to Under Review pending an analyst briefing to be held later today. Source: Bloomberg Page 1 of 3
15. 30-Jan-18 Table 1 : Earnings Summary (RMmn) FYE Jun 30 Revenue EBITDA EBITDA margin (%) Depreciation and 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 (%) FY16 1,463.3 420.2 28.7 (209.4) 210.8 (1.1) (13.3) 196.4 0.4 (39.3) 157.5 170.8 81.4 57.5 15.1 5.8 23.0 2.0 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 14.5 5.4 27.0 2.4 FY18F 1,648.2 414.4 25.1 (182.8) 231.6 10.8 0.0 242.3 (48.5) (38.8) 155.1 155.1 73.9 (12.8) 16.7 5.8 32.0 2.8 Figure 1: Forward EV/EBITDA FY19F 1,725.6 442.2 25.6 (179.7) 262.5 14.5 0.0 277.0 (55.4) (44.3) 177.3 177.3 84.5 14.3 14.6 5.5 32.0 2.8 FY20F 1,842.2 484.2 26.3 (177.4) 306.8 18.0 0.0 324.8 (65.0) (52.0) 207.9 207.9 99.0 17.3 12.4 5.0 32.0 2.8 Figure 2: Forward PB all x x 2.5 6.5 6.0 +1sd: 1.9x 2.0 5.5 5.0 +1sd: 4.6x Mean: 1.4x 1.5 4.5 1.0 Mean: 3.7x 4.0 -1sd: 0.9x 3.5 0.5 3.0 -1sd: 2.8x Aug-17 Nov-17 Feb-17 May-17 Aug-16 Nov-16 Feb-16 May-16 Aug-15 Nov-15 Feb-15 May-15 Aug-14 Nov-14 Feb-14 May-14 Aug-13 Nov-13 Aug-17 Nov-17 Feb-17 May-17 Aug-16 Nov-16 Feb-16 May-16 Aug-15 Nov-15 Feb-15 May-15 Aug-14 Nov-14 Feb-14 May-14 Aug-13 Nov-13 Feb-13 May-13 Source: Bloomberg, TA Securities Feb-13 0.0 2.0 May-13 2.5 Source: Bloomberg, TA Securities Table 2: 1HFY18 Results Analysis (RMmn) FYE Jun 30 Revenue EBITDA Depreciation & Amortisation EBIT Net finance cost EI PBT Tax MI Net profit Core net profit Capex USD/MYR rate (RM) EPS (sen) DPS (sen) Profitability ratios (%) EBITDA margin PBT margin Net profit margin Tax rate 2QFY17 401.4 127.0 (47.4) 79.6 0.0 0.0 79.6 (12.4) (12.2) 55.0 55.0 19.2 4.32 29.0 0.0 1QFY18 387.6 101.4 (48.3) 53.1 (0.5) 0.0 52.6 (8.8) (7.6) 36.2 36.2 30.7 4.26 19.1 10.0 2QFY18 395.3 104.3 (44.9) 59.4 0.0 0.0 59.4 (10.6) (7.6) 41.2 41.2 59.3 4.16 21.7 0.0 QoQ (%) 2.0 2.9 (7.0) 11.9 (109.8) n/a 13.0 21.2 0.3 13.7 13.7 93.0 (2.4) 13.7 (100.0) YoY (%) (1.5) (17.9) (5.4) (25.4) (6.3) n/a (25.3) (14.6) (37.6) (25.1) (25.1) 208.6 (3.8) (25.1) n/a 1HFY17 759.4 230.4 (95.0) 135.5 (0.0) 0.0 135.4 (18.7) (22.1) 94.7 94.7 40.0 8.4 49.9 8.0 1HFY18 782.9 205.6 (93.2) 112.4 (0.4) 0.0 112.0 (19.4) (15.2) 77.4 77.4 90.0 8.4 40.8 10.0 YoY (%) 3.1 (10.8) (1.9) (17.0) 862.8 n/a (17.3) 4.0 (31.2) (18.2) (18.2) 125.0 0.5 (18.2) 25.0 31.6 19.8 13.7 15.6 26.1 13.6 9.3 16.7 26.4 15.0 10.4 17.9 pp 0.2 1.5 1.1 1.2 pp (5.3) (4.8) (3.3) 2.2 30.3 17.8 12.5 13.8 26.3 14.3 9.9 17.3 pp (4.1) (3.5) (2.6) 3.5 Page 2 of 3
16. 30-Jan-18 (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 Tuesday, January 30, 2018, 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
17. Tuesday , 30 January, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s P ic ks 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
18. Technical View Tuesday , January 30, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,870.52 (+16.60, +0.90%) Chartist: Stephen Soo Close Name 29/Jan FBMKLCI 1870.52 Tel: +603-2167 9607 Change High Low 16.60 1,870.52 1,855.09 Bollinger Bands RSI stsoo@ta.com.my Moving Averages www.taonline.com.my DMI MACD DMI MACD Recent Signal DMI Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff 1,788.49 1,822.72 1,856.94 76.31 1,833.90 1,800.80 1,768.87 43.69 9.50 51.21 34.19 21.10 20.86 0.234 BUY BUY - MACD Signal Change BUY AFFIN 2.53 0.06 2.54 2.47 2.20 2.39 2.57 65.38 2.47 2.37 2.39 31.25 16.64 28.85 14.61 0.04 0.02 0.018 BUY BUY - - ABMB 4.34 0.00 4.41 4.32 4.01 4.16 4.31 77.24 4.22 4.12 3.98 35.55 6.87 42.26 28.68 0.08 0.07 0.005 BUY BUY - BUY AMBANK 4.82 -0.02 4.88 4.78 4.41 4.66 4.91 64.73 4.76 4.56 4.41 27.93 14.03 30.78 13.90 0.11 0.11 0.005 BUY BUY - - AXIATA 5.68 0.06 5.70 5.63 5.41 5.56 5.71 64.39 5.57 5.50 5.42 31.83 7.47 49.11 24.36 0.05 0.05 (0.003) BUY SELL - - CIMB 7.16 0.10 7.16 7.05 6.47 6.77 7.08 82.12 6.88 6.66 6.39 35.40 5.04 59.49 30.36 0.16 0.15 0.010 BUY BUY - - DIGI 5.00 0.00 5.00 4.98 4.68 4.86 5.05 64.38 4.87 4.84 4.77 26.02 14.67 17.25 11.35 0.04 0.02 0.017 BUY BUY - - GAMUDA 5.20 -0.03 5.23 5.16 4.86 5.08 5.29 64.29 5.15 5.01 4.90 29.29 9.23 32.62 20.05 0.09 0.07 0.013 BUY BUY - - GENTING 9.68 0.08 9.70 9.58 9.15 9.50 9.84 56.66 9.61 9.35 9.20 24.81 15.76 22.38 9.05 0.14 0.13 0.005 BUY BUY - - GENM 5.60 0.05 5.60 5.52 5.33 5.59 5.85 51.58 5.51 5.58 5.40 19.29 16.55 14.42 2.75 0.01 0.03 (0.014) BUY SELL - - IHH 6.01 0.01 6.02 5.94 5.79 5.93 6.07 65.82 5.99 5.90 5.79 15.61 18.19 12.81 -2.58 0.06 0.06 0.002 SELL BUY - - IOICORP 4.66 -0.04 4.70 4.60 4.54 4.64 4.73 68.12 4.66 4.58 4.53 17.39 20.92 14.15 -3.53 0.04 0.04 (0.000) SELL SELL - - MALAKOFF 0.94 -0.01 0.95 0.93 0.89 0.96 1.04 48.11 0.95 0.94 0.95 24.84 17.09 30.73 7.75 0.00 0.00 0.002 BUY BUY - - MAXIS 6.08 0.00 6.08 6.02 5.97 6.03 6.09 65.60 6.04 6.00 5.97 18.24 21.46 26.51 -3.23 0.03 0.02 0.003 SELL BUY - - 10.20 0.12 10.24 10.04 9.69 9.86 10.02 81.99 9.91 9.74 9.54 39.50 6.48 63.13 33.02 0.12 0.12 0.004 BUY BUY - BUY MAYBANK MBSB 1.19 -0.03 1.24 1.19 1.07 1.17 1.27 59.94 1.18 1.13 1.11 26.93 14.22 28.63 12.71 0.03 0.03 0.005 BUY BUY - - RHBBANK 5.54 0.04 5.57 5.51 4.98 5.22 5.45 75.70 5.30 5.14 5.02 37.63 7.45 37.95 30.18 0.11 0.09 0.022 BUY BUY - - SIME 2.99 0.03 3.02 2.95 2.31 2.70 3.10 80.58 2.82 2.51 2.35 41.62 7.45 51.24 34.17 0.17 0.16 0.008 BUY BUY - - 15.84 0.00 16.12 15.78 15.24 15.69 16.14 61.06 15.82 15.51 15.38 32.78 14.50 33.88 18.27 0.15 0.16 (0.006) BUY SELL - - TM 6.12 0.12 6.16 5.98 5.89 6.06 6.23 45.79 6.02 6.09 6.07 18.90 14.62 20.35 4.28 -0.03 -0.02 (0.005) BUY SELL - - WPRTS 3.47 0.00 3.50 3.45 3.35 3.56 3.78 43.15 3.53 3.58 3.56 15.08 22.14 17.14 -7.06 -0.02 -0.02 (0.001) SELL SELL - SELL TENAGA AIRASIA 4.21 -0.08 4.30 4.15 3.26 3.81 4.36 81.39 4.03 3.64 3.46 41.56 9.49 50.99 32.07 0.22 0.18 0.038 BUY BUY - - AIRASIA X 0.41 -0.03 0.44 0.40 0.34 0.38 0.42 73.51 0.39 0.36 0.36 39.02 10.77 45.54 28.25 0.01 0.01 0.003 BUY BUY - - ARMADA 0.86 -0.01 0.87 0.86 0.76 0.84 0.91 64.30 0.84 0.80 0.78 28.80 15.53 31.56 4.14 0.02 0.02 (0.000) BUY SELL - - BINAPURI 0.34 -0.01 0.35 0.34 0.33 0.35 0.37 48.33 0.34 0.35 0.35 18.34 14.20 14.35 28.88 0.00 0.00 (0.001) BUY SELL - - CMSB 4.29 0.02 4.34 4.28 3.82 4.04 4.26 75.34 4.12 3.93 3.81 44.82 15.94 33.72 14.26 0.10 0.09 0.009 BUY BUY - - DIALOG 2.69 0.00 2.73 2.68 2.50 2.63 2.76 66.50 2.65 2.58 2.51 24.66 10.40 36.09 14.26 0.05 0.05 (0.006) BUY SELL - - ECO WORLD 1.41 -0.01 1.42 1.41 1.38 1.42 1.47 45.94 1.43 1.42 1.44 19.01 15.39 17.16 3.62 0.00 0.00 0.002 BUY BUY - - EKOVEST 1.01 -0.02 1.04 1.00 0.94 1.06 1.18 48.96 1.06 1.02 0.99 22.67 20.90 27.31 1.77 0.02 0.03 (0.009) BUY SELL - - GADANG 1.16 0.00 1.18 1.15 1.09 1.14 1.19 55.22 1.14 1.12 1.11 20.01 8.74 31.59 11.27 0.01 0.01 0.004 BUY BUY - - HSL 1.65 0.04 1.65 1.60 1.38 1.49 1.59 79.05 1.51 1.47 1.47 42.59 15.23 18.78 27.36 0.03 0.01 0.018 BUY BUY - - ISKANDAR 1.37 -0.01 1.39 1.37 1.35 1.40 1.44 51.16 1.38 1.39 1.34 19.27 14.81 27.42 4.45 0.00 0.01 (0.008) BUY SELL BUY - KIMLUN 2.28 0.03 2.28 2.25 2.19 2.26 2.33 45.32 2.26 2.26 2.29 35.32 36.71 16.09 -1.40 -0.01 -0.01 (0.001) SELL SELL - - KKBE 0.97 -0.01 0.98 0.97 0.96 0.98 1.01 50.42 0.98 0.98 0.97 33.99 24.73 22.68 9.26 0.00 0.00 (0.003) BUY SELL - - MUDAJAYA 0.96 -0.06 1.02 0.96 0.86 0.91 0.97 67.68 0.91 0.91 0.95 41.62 13.94 27.74 27.68 0.00 -0.02 0.012 BUY BUY - - MRCB 1.19 -0.02 1.22 1.19 1.14 1.22 1.31 53.56 1.22 1.18 1.12 22.55 19.66 24.57 2.89 0.03 0.03 (0.007) BUY SELL - - NAIM 1.05 -0.03 1.06 1.04 1.00 1.16 1.33 42.44 1.10 1.13 1.11 27.46 22.02 34.03 5.44 -0.01 0.00 (0.012) BUY SELL - - SAPURA ENERGY 0.78 -0.03 0.81 0.78 0.66 0.82 0.98 44.05 0.82 0.79 0.96 20.35 25.96 29.28 -5.60 -0.03 -0.04 0.009 SELL BUY - - SUNCON 2.56 -0.04 2.59 2.54 2.43 2.53 2.64 64.45 2.52 2.49 2.45 27.70 13.13 28.12 14.57 0.03 0.03 (0.002) BUY SELL - - UEMS 1.16 0.00 1.17 1.13 1.09 1.16 1.24 53.72 1.18 1.13 1.09 28.29 15.95 29.41 12.34 0.03 0.03 (0.001) BUY SELL - SELL UMWOG 0.34 -0.01 0.36 0.34 0.29 0.37 0.45 47.56 0.36 0.35 0.33 20.93 20.12 26.72 0.82 0.00 0.01 (0.009) BUY SELL - - WASEONG 1.45 -0.02 1.47 1.45 1.12 1.33 1.54 71.71 1.40 1.27 1.22 28.64 14.27 46.00 14.37 0.08 0.06 0.012 BUY BUY - - WCT 1.63 -0.05 1.67 1.63 1.59 1.70 1.81 50.73 1.70 1.65 1.62 22.74 15.79 31.29 6.95 0.02 0.03 (0.004) BUY SELL - - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 3
19. 30-Jan-18 Technical Comments : BUY Axiata & TM Bullish technical momentum on Axiata supports further upside bias to re-test the 16/8/16 peak (RM5.99), while a convincing breakout should aim for the 123.6%FP (RM6.43) and 138.2%FP (RM6.70) going forward. Key retracement supports are from the 76.4%FR (RM5.55) and 61.8%FR (RM5.27). TM shares needs confirmed breakout above the 38.2%FR (RM6.22) to target the 50%FR (RM6.36) and 61.8%FR (RM6.48) ahead, while supports from RM5.95/5.90 and the 30/12/16 low (RM5.81) limits downside risk. AXIATA RM5.68 (+0.06) Z BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 5.72 5.57 5.42 10-day 30-day 50-day RM RM RM BUY Recent Signal Signal Change DMI DAILY MACD Recent Signal Signal Change TM RM RM RM SIMPLE MOVING AVERAGES 6.18 6.05 5.92 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change SELL RM6.12 (+0.12) BOLLINGER BANDS Upper Middle Lower 5.58 5.51 5.43 RM RM RM 6.04 6.09 6.07 DAILY MACD SELL Page 2 of 3
20. 30-Jan-18 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 22-J an (16.2) (0.6) 0.4 0.3 (0.7) (0.7) (0.7) 0.1 (0.2) 0.2 0.5 (0.1) (2.2) (0.6) (0.7) (5.8) (0.4) 0.2 (5.1) 1.5 0.1 2.2 (1.6) (0.3) 0.0 0.7 (0.1) (4.1) (0.1) 0.0 0.7 Tel: +603-2167-9607 Total Money Flow (RM'mn) 23-J an 24-J an 25-J an (48.9) (15.0) (30.2) (0.1) (0.6) (0.3) (0.2) (0.9) (0.1) (2.5) (3.6) (2.3) (0.3) 0.2 (0.4) (7.1) (6.1) 0.2 (0.3) 0.1 (0.4) 1.9 0.1 0.3 0.9 (0.7) (0.8) (1.3) 0.2 0.0 (0.9) 1.7 0.2 (9.9) 0.9 (0.5) (0.2) 0.5 (0.4) (27.3) (0.3) (0.0) (0.2) (1.5) 0.0 1.1 (0.3) 0.1 (0.0) (3.5) 1.1 (0.7) (2.4) 0.1 (0.1) 7.2 (0.4) (0.0) (1.5) 1.0 (0.2) 0.3 (0.7) (0.0) (3.1) 0.0 (0.0) (0.2) 26-J an (46.2) (1.6) 0.1 (0.2) 0.4 (7.5) 0.1 (0.1) (3.1) (2.0) (0.0) (0.0) 0.7 (0.8) (2.3) 2.5 (3.9) 0.3 1.3 (12.6) 0.3 (0.6) (6.3) (0.0) 0.2 (1.6) (0.2) (3.4) (0.0) 0.1 0.1 0.1 0.1 (2.7) (7.4) (0.1) 0.1 (2.5) (0.3) (2.7) (3.0) (0.4) 0.5 7.3 (4.9) 0.1 0.4 (0.2) (0.9) 0.4 (0.7) (0.1) (11.9) 0.0 0.1 0.2 Total 5D MF (156.6) (3.2) (0.6) (8.3) (0.8) (21.2) (2.3) 0.1 (5.2) (7.7) 0.7 0.3 (6.6) (1.3) (7.2) (10.1) (4.5) 1.0 9.8 (14.7) 0.7 (9.4) (6.2) (2.0) 0.6 (1.7) (0.8) (49.8) (0.4) 0.1 0.5 stsoo@ta.com.my (A) (B) Prv. Chg Cur. Chg (15.3) (16.0) 0.3 (1.3) 0.8 0.2 1.4 2.1 (0.6) 0.8 6.3 (7.7) 1.6 (0.0) 0.1 (0.2) (3.8) (0.4) (7.2) 5.4 (0.2) 0.1 0.1 (0.1) 1.0 3.3 (1.4) (0.6) (2.0) 0.4 (0.6) 5.6 (0.5) (3.6) 0.6 (0.2) 0.1 (6.0) (4.5) (7.6) 0.2 0.2 1.8 (1.0) (1.2) (6.2) (0.7) 0.9 0.1 (0.2) 0.0 (0.9) (0.1) (0.2) (8.8) 8.6 0.0 (0.0) 0.2 (0.1) 0.4 (0.1) 22-J an 1,833 4.75 2.61 5.56 32.00 6.89 23-J an 1,838 4.80 2.58 5.59 32.78 6.90 4.89 3.59 9.72 5.51 18.00 17.90 6.00 4.67 25.10 9.87 6.05 7.48 8.00 24.80 18.00 17.36 20.96 5.32 3.05 2.80 6.00 15.82 7.82 9.70 1.54 4.92 3.62 9.82 5.47 17.98 18.10 6.00 4.67 25.10 9.89 6.06 7.50 8.03 24.80 18.16 17.38 20.96 5.32 3.16 2.90 6.00 15.86 7.80 9.70 1.55 OUTFLOW CLOSING PRICE 24-J an 25-J an 1,837 1,846 4.75 4.80 2.60 2.60 5.56 5.61 33.16 33.34 6.95 7.02 4.91 3.54 9.66 5.58 18.00 17.80 6.00 4.66 25.24 9.91 6.05 7.49 8.00 24.80 17.70 17.40 20.96 5.34 3.16 2.89 6.01 15.84 7.80 9.70 1.54 4.95 3.54 9.59 5.56 18.14 18.08 6.02 4.67 25.24 10.00 6.06 7.52 8.00 24.82 17.80 17.38 21.20 5.40 3.17 2.89 6.00 15.86 7.80 9.70 1.55 26-J an 1,854 4.84 2.59 5.62 34.20 7.06 5.00 3.47 9.60 5.55 18.20 18.28 6.00 4.70 25.24 10.08 6.08 7.54 7.98 24.76 18.30 17.52 21.30 5.50 3.16 2.96 6.00 15.84 7.80 9.70 1.54 Chg 8.06 0.04 (0.01) 0.01 0.86 0.04 0.05 (0.07) 0.01 (0.01) 0.06 0.20 (0.02) 0.03 0.00 0.08 0.02 0.02 (0.02) (0.06) 0.50 0.14 0.10 0.10 (0.01) 0.07 0.00 (0.02) 0.00 0.00 (0.01) 6.8 6.8 11.1 9.4 6.1 9.4 (23.9) (17.1) (53.1) (46.3) (25.9) (14.8) (40.9) (31.6) (46.4) (40.3) (29.1) (19.8) Date Retail Ins titution Foreign Total 22-J a n 29.3% 51.5% 19.2% 100% 12 (18) 23-J a n 24-J a n 25-J a n 26-J a n 25.4% 27.3% 20.7% 26.0% 52.8% 53.8% 56.2% 53.8% 21.8% 18.9% 23.1% 20.2% 100% 100% 100% 100% 12 (18) 11 (19) 9 (21) 12 (18) 11 (19) (A+B) DMF OUT OUT IN IN IN OUT IN OUT OUT OUT OUT IN IN OUT OUT IN OUT IN OUT OUT IN IN OUT IN OUT OUT OUT OUT OUT IN 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 Tuesday, January 30, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3