Bursa Malaysia Daily Market Report - 30 June

Transcription

1. Friday , 30 June, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Aeon Co. (M) Berhad: Disposal of Aeon Mahkota Cheras 2. Signature International Berhad: Renewed Hope on Battersea Project Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) 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. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Friday, 30 June 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (29.06.2017) (mil) Main Market 910.0 Warrants 110.8 ACE Market 370.9 Bond 4.6 ETF 0.0 Total 1,396.3 Off Market 78.5 Volume +/-chg (RMmn) -26.7 1,453.2 -57.7 12.2 92.6 88.4 -8.1 1.9 -0.01 0.0 1,555.7 35.7 204.4 Value +/-chg -317.9 -9.0 33.7 -1.8 -0.01 187.4 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP June 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 Up Down 383 222 60 57 57 33 1 2 1 0 502 314 % chg % YTD chg 1,771.36 12,631.92 17,470.52 1,776.00 0.13 13.64 100.11 -0.50 0.01 0.11 0.58 -0.03 7.90 10.16 18.72 8.59 21,287.03 6,144.35 7,350.32 20,220.30 2,395.66 25,965.42 3,258.65 1,578.12 5,829.71 3,188.06 1,892.27 5,818.10 -167.58 -90.06 -37.48 89.89 13.10 281.92 42.95 -4.51 0.00 14.86 8.90 62.40 -0.78 -1.44 -0.51 0.45 0.55 1.10 1.34 -0.28 0.00 0.47 0.47 1.08 7.71 14.14 2.90 5.79 18.22 18.02 13.12 2.28 10.06 2.72 -3.90 2.69 Top 10 KLCI Movers Based on Mkt Cap. Off Market (mn) PTRANS 30.0 BIMB 10.5 GDEX 8.0 MAXIS 7.0 PETGAS 4.5 LAYHONG-WA 4.0 BJASSET 3.5 GKENT 3.0 SEAL 2.6 ECOFIRS 2.4 UNIMECH 2.0 Review & Outlook Value/ Volume 1.60 0.11 0.24 0.41 1.18 1.11 2.60 (RM) @ 0.18 @ 4.50 @ 0.61 @ 5.61 @ 18.72 @ 0.45 @ 1.30 @ 4.15 @ 0.42 @ 0.25 @ 1.08 Counter Mkt Cap. (RM’mn) PBBANK 78,388 PCHEM 56,960 IHH 48,857 MISC 33,166 IOICORP 28,277 KLK 26,475 RHBBANK 20,371 PPB 20,082 AMBANK 14,739 ASTRO 13,701 Chg (RM) 0.04 0.02 0.01 0.11 0.05 0.02 0.01 0.14 0.02 0.04 Important Dates TDM - 1:10 Bonus Issue - BI of 150.5m shares. 1 bonus share for every 10 existing shares. Entitlement Date: 03/07/2017. LISTING ON: 04/07/2017. SCC - 1:10 Bonus Issue - BI of 4.3m shares. 1 bonus share for every 10 existing shares. Ex-Date: 06/07/2017. Entitlement Date: 10/07/2017. LISTING ON: 11/07/2017. Vol. (mn) 3.52 5.95 1.62 0.78 0.95 1.72 0.62 0.22 1.43 0.85 Late profit-taking overshadowed earlier gains Thursday which was encouraged by the overnight rally on US financial and technology stocks which led a broad market rebound. The KLCI ended flat at 1,771.36 after ranging between early high of 1,775.85 and low of 1,770.53, as gainers led losers 502 to 314 on slow trade totaling 1.39bn shares worth RM1.55bn. Stocks should extend sideways trade amid weak buying momentum today, in the absence of 1H window-dressing interest. On the index, a decisive break below the 50-day moving average level, now at 1,770, could grease slide to better support from 1,762, the lower Bollinger band, and subsequently the 100-day ma at 1,746. Immediate upside hurdle will be the recent high of 1,796, and then the 1,800 psychological level. Bearish technical momentum on Tenaga implies correction potential to the 61.8%FR (RM14.02), with a breakdown to test better support from the 50%FR (RM13.75), mirroring the 100-day ma, while overhead resistance is from the upper Bollinger band (RM14.61). Similarly, TM shares should weaken before finding support from the 61.8%FR (RM6.48), with better support from the 50%FR (RM6.36), matching the 200-day ma level, and major overhead resistance from the 30/8/16 high (RM6.90). News Bites • Sime Darby Bhd is selling New Lunderston Estate, a freehold tract measuring 297.5 acres, in Selangor for RM85.5mn cash. • AEON Co (M) Bhd is disposing of the two-storey AEON Mahkota Cheras Shopping Centre built for RM87.8mn to Foremost Wealth Management Sdn Bhd. • Vivocom International Holdings Bhd has proposed to place new shares to third party investors to raise between RM35.6mn and RM47.9mn for working capital and bank borrowings repayment. • Boon Koon Group Bhd intends to diversify into property development and has entered into a joint development agreement with Platinum Eminent. • A shareholder of Sarawak-based Hock Seng Lee Bhd has failed in his bid to remove managing director Datuk Yu Chee Hoe and three others from the board of the construction and engineering group. • Tiger Synergy Bhd has signed a memorandum of agreement with Prosma Bhd, a holding company for the assets of Sekretariat Komuniti Prefer Malaysia, to develop a RM100mn affordable condominium in Gombak. • TSR Capital Bhd said it is open to selling its Menara TSR in Mutiara Damansara, Petaling Jaya, which is valued at about RM170mn known, and would use the gains from the disposal for future property development projects. • Kumpulan Jetson Bhd's wholly-owned unit has accepted a RM919.3mn subcontract job from MCC Overseas (M) Sdn Bhd to undertake main building works for a mixed commercial project on Jalan Conlay, Kuala Lumpur. • Tasco Bhd expects its foray into the cold chain logistics segment to boost its 2017 revenue by an additional RM100mn, following shareholder approval for its acquisition of Gold Cold Transport and Westport land. • Reach Energy Bhd wants to ramp up oil production in its 60%-owned Kazakhstan oil field to between 4,000 and 5,000 barrels of oil per day by the end of 2017 from 3,301 barrels of oil per day as at end-2016. • Berjaya Corp Bhd made a net profit of RM140.0mn in FY17 against a net loss of RM177.22mn the year before due to higher net profit from the property investment and development segment. • The US GDP increased at a 2.1%p annualized rate instead of the previously reported 1.9% pace, the Commerce Department said in its third GDP estimate for the period. Exchange Rate USD/MYR 4.2933 -0.0061 USD/JPY 112.55 0.3700 EUR/USD 1.141 0.0047 Commodities Futures Palm Oil (RM/mt) 2,464.00 25.00 Crude Oil ($/Barrel) 44.87 -0.01 Gold ($/tr.oz.) 1,245.60 -3.80 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. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
3. Technical Comments : Take Profit on Tenaga & TM Bearish technical momentum on Tenaga implies correction potential to the 61.8%FR (RM14.02), with a breakdown to test better support from the 50%FR (RM13.75), mirroring the 100-day ma, while overhead resistance is from the upper Bollinger band (RM14.61). Similarly, TM shares should weaken before finding support from the 61.8%FR (RM6.48), with better support from the 50%FR (RM6.36), matching the 200-day ma level, and major overhead resistance from the 30/8/16 high (RM6.90). TENAGA RM14.14 (UNCH) Upper Middle BOLLINGER BANDS RM RM 14.61 14.15 10-day 30-day Lower RM 13.69 50-day BUY Recent Signal DMI Recent Signal 13.96 SELL Signal Change TM Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 14.27 RM 14.04 BOLLINGER BANDS RM RM RM DMI RM6.61 (-0.01) 6.68 6.56 6.44 BUY SIMPLE MOVING AVERAGES RM 6.61 RM 6.53 RM 6.50 DAILY MACD Recent Signal BUY Signal Change 10-day 30-day 50-day Page 2 of 2
4. TA Securities Friday , June 30, 2017 FBMKLCI: 1,771.36 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Market View Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my Bound on Final Trading Day of 1H17 Late profit-taking overshadowed earlier gains Thursday which was encouraged by the overnight rally on US financial and technology stocks which led a broad market rebound. The KLCI ended flat at 1,771.36 after ranging between early high of 1,775.85 and low of 1,770.53, as gainers led losers 502 to 314 on slow trade totaling 1.39bn shares worth RM1.55bn. Break Below 1,770 to Test 1,762 Stocks should extend sideways trade amid weak buying momentum today, in the absence of 1H window-dressing interest. On the index, a decisive break below the 50-day moving average level, now at 1,770, could grease slide to better support from 1,762, the lower Bollinger band, and subsequently the 100-day ma at 1,746. Immediate upside hurdle will be the recent high of 1,796, and then the 1,800 psychological level. Take Profit on Tenaga & TM Bearish technical momentum on Tenaga implies correction potential to the 61.8%FR (RM14.02), with a breakdown to test better support from the 50%FR (RM13.75), mirroring the 100-day ma, while overhead resistance is from the upper Bollinger band (RM14.61). Similarly, TM shares should weaken before finding support from the 61.8%FR (RM6.48), with better support from the 50%FR (RM6.36), matching the 200-day ma level, and major overhead resistance from the 30/8/16 high (RM6.90). Asian Markets Higher on Comments from Major Central Banks Asian stock markets traded higher on Thursday, tracking the overnight gains on Wall Street and as investors digested comments from major central banks that indicate interest rates may be heading higher. Bank of England Governor Mark Carney said Wednesday that monetary stimulus may need to be withdrawn to some extent in future, implying interest rates may be raised. In addition, Bank of Canada Governor Stephen Poloz said that previous rate cuts "have done their job." The Nikkei shares average rose 0.45% to 20,220.30 boosted by strength in tech shares, while Korean Kospi ended 0.55% higher to close at 2,395.66. In down under, the benchmark ASX200 ended higher by 1.08 percent to close at 5,818.10 led by gains in the energy, materials and information technology sub-indexes. In China, stock markets ended higher driven by strong gains in raw material shares as a weaker dollar lifted commodities prices. The blue-chip CSI300 index rose 0.62% to 3,668.83 points, while the Shanghai Composite Index gained 0.47% to 3,188.06 points. Wall Street Lower as Tech Sell-Off Continues U.S stock markets traded lower on Thursday with the S&P 500 and Dow suffering their worst one day declines since May as technology's latest drop washed out strong gains from the big banks. The technology sector dropped 1.8%. Shares of Facebook, Amazon, Netflix, Apple and Alphabet all dropped more than 1%. Chip stocks also fell, with Nvidia and Advanced Micro Devices closing 3.3% and 4.8% lower, respectively. Meanwhile, Blue Apron Holdings shares ended flat in their market debut following the meal-kit delivery company's watered down IPO in the shadow of Amazon deal to buy Whole Foods Market. Page 1 of 6
5. TA Securities 30-Jun-17 A Member of the TA Group In economic news , the U.S. economy grew at an annualized rate of 1.4% in the first quarter, according to the Commerce Department's final first-quarter GDP read. Weekly jobless claims came in at 244,000 for last week, slightly above the expected 240,000. The Dow Jones Industrial Average fell 167.58 points, or 0.78%, to 21,287.03, the S&P 500 dropped 20.99 points, or 0.86%, to 2,419.70 and the Nasdaq Composite fell 90.06 points, or 1.44%, to 6,144.35. Page 2 of 6
6. TA Securities 30-Jun-17 A Member of the TA Group News In Brief Corporate Sime Darby Bhd is selling New Lunderston Estate , a freehold tract measuring 297.5 acres, in Selangor for RM85.5mn cash. The conglomerate said its indirect wholly-owned subsidiary Sime Darby Builders Sdn Bhd has entered into a sale and purchase agreement with PNB Development Sdn Bhd, a wholly-owned unit of Permodalan Nasional Bhd (PNB). PNB is the controlling shareholder of Sime Darby holding a 48.79% stake, according to its latest annual report. (Bursa Malaysia/ The Edge) Comment: We are not surprised by this news. This could be a part of its asset monetization programme and internal restructuring plan prior to the creation of three listed entities. Sime Darby is expected to record a gain of RM62.4mn by FY18. Based on the selling price of RM85.53mn, this disposal works out to approximately RM710k/ha or RM6.60 psf, which is at the lower end of the asking price for agriculture land within Kuala Langat, which is in the range from RM7 to RM35 psf (based on iProperty website). The disposal is expected to increase in FY18 EPS of approximately 0.9sen/share only. Maintain Hold on Sime Darby with an unchanged TP of RM10.02/share, based on SOP valuation. AEON Co (M) Bhd is disposing of the two-storey AEON Mahkota Cheras Shopping Centre built for RM87.8mn to Foremost Wealth Management Sdn Bhd. AEON said the disposal is in line with its corporate strategy of focusing and developing its future retail business. (Bursa Malaysia/ The Edge) Vivocom International Holdings Bhd has proposed to place new shares to third party investors to raise money for working capital and bank borrowings repayment. The group expects to raise between RM35.6mn and RM47.9mn from the placement of shares to parties to be identified later. (Bursa Malaysia/ The Edge) Boon Koon Group Bhd, which specialises in rebuilt commercial vehicles, intends to diversify into property development. Boon Koon said it entered into a joint development agreement with Platinum Eminent, under which it will have to pay an upfront participation fee of RM20mn, which in turn will entitle Boon Koon to 60% of the gross development profits of the project, which is estimated to be RM93.5mn. (Bursa Malaysia/ The Edge) A shareholder of Sarawak-based Hock Seng Lee Bhd (HSL) has failed in his bid to remove managing director Datuk Yu Chee Hoe and three others from the board of the construction and engineering group. The High Court in Kuching today dismissed the application by shareholder Yii Chee Ming to remove Chee Hoe, executive directors Tony Yu Yuong Wee and Lau Kiing Kang and non-executive director Lau Kiing Yiing from the board. (Bursa Malaysia/ The Edge) Tiger Synergy Bhd has signed a memorandum of agreement with Prosma Bhd, a holding company for the assets of Sekretariat Komuniti Prefer Malaysia, to develop a RM100mn affordable condominium in Gombak. The project is expected to contribute RM30mn to Tiger Synergy's bottom line over the next three years, said the group's managing director Shirley Tan Lee Chin. (Bursa Malaysia/ The Edge) TSR Capital Bhd said it is open to selling its office tower in Mutiara Damansara, Petaling Jaya, known as Menara TSR, and would use the gains from the disposal for future property development projects. Menara TSR, which is two years old and comes with 16 floors, is 94% occupied, mostly by international firms and is valued at about RM170mn. (Bursa Malaysia/ The Edge) Kumpulan Jetson Bhd's wholly-owned unit Jetson Construction Sdn Bhd has accepted a RM919.3mn subcontract job from MCC Overseas (M) Sdn Bhd to undertake main building works for a mixed commercial project on Jalan Conlay here. (Bursa Malaysia/ The Edge) Page 3 of 6
7. TA Securities 30-Jun-17 A Member of the TA Group Tasco Bhd expects its foray into the cold chain logistics segment to boost its 2017 (FY17) revenue by an additional RM100mn, following shareholder approval for its acquisition of Gold Cold Transport (GCT) and Westport land. This will bring its revenue for the year to around RM700mn according to Tasco’s executive chairman Lee Check Poh. (The Edge) Reach Energy Bhd wants to ramp up oil production in its 60%-owned Kazakhstan oil field by up to 51% to 5,000 barrels of oil per day (BOPD), from 3,301 BOPD as at end-2016. The company said it looks to increase production to between 4,000 BOPD and 5,000 BOPD by the end of 2017. (Bursa Malaysia/ The Edge) Berjaya Corp Bhd (BCorp) posted a net profit of RM3.2mn for the fourth financial quarter ended April 30, 2017 (4QFY17), a stark contrast to a net loss of RM368.9mn a year ago due to impairment in value of goodwill of RM473.2mn plus and assets held for sale relating to Berjaya (China) Great Mall Co Ltd of RM131.8mn. For the full financial year ended April 30, 2017 (FY17), BCorp also made a net profit of RM140.0mn against a net loss of RM177.22mn the year before. The annual profit was attributed to higher net profit from the property investment and development segment although it noted that this was dampened by decreased profits from its gaming operations. (Bursa Malaysia/ The Edge) NTPM Holdings Bhd’s net profit for its fourth quarter ended April 30, 2017 (4QFY17) fell 10.9% to RM9.0mn from RM10.1mn a year earlier. For the full FY17, the group’s net profit fell 13.5% to RM49.9mn from RM57.7mn in FY16 due mainly to increase in cost of raw materials, labour costs, as well as repair and maintenance and energy costs. (Bursa Malaysia/ The Edge) Hai-O Enterprise Bhd posted a 63% rise in earnings in its fourth quarter of financial year 2017 (4QFY17), as both its wholesale and multi-level marketing divisions performed better. Net profit for the three months ended April 30 came in at RM18.3mn compared with RM11.2mn a year earlier. (Bursa Malaysia/ The Edge) Poh Kong Holdings Bhd posted a 22% rise in net profit in its third quarter ended April 30, 2017 (3QFY17) to RM7.4mn from RM6.1mn a year earlier, as it saw better gold prices and contribution from new outlets. For the cumulative nine months of FY17, net profit jumped 86% to RM15.2mn compared with RM8.2mn a year ago. (Bursa Malaysia / The Edge) Hiap Teck Venture Bhd’s net profit in its third quarter ended April 30, 2017 (3QFY17) jumped three times to RM31.9mn from RM10.6mn a year ago, due mainly to higher margins. The group’s cumulative nine months ended April 30, 2017 (9MFY17) saw it return to the black with a net profit of RM34.9mn, from a net loss of RM49.4mn a year ago, while revenue dipped 4% to RM845.4mn from RM877.5mn. (Bursa Malaysia/ The Edge) Kim Loong Resources Bhd's net profit almost doubled to RM24.3mn for the first quarter ended April 30, 2017 (1QFY18) from RM12.4mn a year earlier, on higher contribution from its plantation operations. (Bursa Malaysia/ The Edge) Page 4 of 6
8. TA Securities 30-Jun-17 A Member of the TA Group News In Brief Economy Asia Japan Retail Sales Japan ’s retail sales growth slowed in May compared to last year, signaling that consumers are still reluctant to open their wallets. Retail sales rose 2.0% in May from a year ago (forecast +2.6%), after rising 3.2% in the previous month. The biggest contributors to the rise were purchases of motor Measured month-on-month, sales fell 1.6% (forecast -1.0%) from April, when they rose 1.4%. vehicles, followed by fuel, medicine and toiletries, according to the economy ministry. (Bloomberg) Hong Kong Retail Sales Hong Kong's retail sales increased for the third straight month in May, preliminary figures from the Census and Statistics Department showed. The value of retail sales climbed 0.5% year-over-year in May, following a 0.1% slight rise in April. The volume of retail sales rebounded 0.7% annually in May, after a 0.1% drop in the prior month. (RTT News) Australia HIA New Home Sales New home sales rose for a second straight month in May, led by strong growth in building activity in NSW and Queensland. A survey of Australia's largest home builders by the Housing Industry Association shows new home sales increased by 1.1% in May, following a rise of 0.8% in April. May's growth was helped by a 2.2% increase in sales of new detached houses, while multi-unit sales were down 2.6%. (SBS News) United States Final GDP Gross domestic product increased at a 2.1%p annualized rate instead of the previously reported 1.9% pace, the Commerce Department said in its third GDP estimate for the period. There are indications that activity moderated further at the start of 2017. The government also said that corporate profits after tax with inventory valuation and capital consumption adjustments increased at an annual rate of 2.3% in the fourth quarter after rising at a 6.7% pace in the third quarter. (CNBC) Unemployment Claims The number of Americans filing for unemployment benefits edged up last week, but the underlying trend remained consistent with a tight labor market. Initial claims for state unemployment benefits increased 2,000 to a seasonally adjusted 244,000 for the week ended June 24, the Labor Department said. Economists polled by Reuters had forecast firsttime applications for jobless claims declining to 240,000 in the latest week. Jobless claims for the prior week were revised up to 242,000 from 241,000. It was the 121st consecutive week that claims have been below 300,000, the threshold associated with a strong labor market. (CNBC) Europe and United Kingdom Euro Economic Sentiment The European Commission publishes euro area economic sentiment survey results. The confidence index is seen rising to 109.5 in June from 109.2 in May. (RTT News) U.K. Mortgage Approvals The Bank of England is slated to release mortgage approvals data for May. The number of mortgage approvals is seen at 64,000 in May compared to 64,600 in April. (RTT News) GfK German Consumer Climate Germany's GfK consumer confidence survey data is due. The forward-looking sentiment index is seen rising to 10.5 in July from 10.4 in June. (RTT News) Page 5 of 6
9. TA Securities 30-Jun-17 A Member of the TA Group Share Buy-Back : 29 June 2017 Company Bought Back Price (RM) Hi/Lo (RM) 21,600 10,000 40,800 1,100 18.90/ 18.80 0.23 2.08/ 2.07 1.41 18.90/ 18.80 0.23/ 0.22 2.12/ 2.05 1.42/ 1.40 BKAWAN GRANFLO PRESBHD TEXCHEM Total Treasury Shares 32,587,731 6,308,800 1,497,500 2,580,500 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. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 6 of 6
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 29-Jun-17 1.95 2.26 5.95 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.37 2.28 5.41 1.00 0.61 1.26 10.3 24.1 19.7 15.8 25.3 29.8 18.9 9.4 30.3 12.3 8.9 19.9 6.0 4.0 2.2 8.1 4.0 3.2 2.44 2.70 7.00 -20.1 -16.3 -15.0 1.88 1.96 4.43 3.7 15.3 34.3 -8.5 5.6 30.2 4.60 3.50 5.30 7.00 15.90 9.90 22.10 5.20 10.00 1.29 0.97 1.36 1.38 0.67 0.96 0.79 1.33 0.70 33.6 29.4 43.9 49.6 105.2 73.4 137.2 50.7 40.3 30.5 33.6 48.4 55.2 115.5 82.9 142.4 54.5 39.0 11.4 9.1 11.1 13.4 14.9 13.1 14.8 10.0 26.0 12.5 8.0 10.1 12.0 13.6 11.6 14.3 9.3 26.8 4.2 3.0 3.6 3.1 2.6 5.2 2.8 2.4 3.2 4.2 3.0 3.7 3.4 2.6 5.2 2.9 2.4 3.2 4.49 3.00 5.70 6.87 16.30 9.68 20.66 5.59 11.14 -14.9 -10.7 -14.2 -3.3 -3.7 -0.5 -1.7 -9.1 -5.9 3.60 2.08 3.90 4.11 12.70 7.50 19.26 4.53 8.20 6.1 28.8 25.4 61.5 23.6 28.4 5.4 12.1 27.8 2.7 12.1 13.5 47.2 16.3 17.4 2.9 7.9 18.4 0.41 1.29 5.50 3.50 0.66 1.38 2.02 2.07 5.90 0.46 1.62 6.00 3.50 0.78 0.58 2.26 1.49 6.26 0.82 0.64 1.04 1.10 1.02 1.27 na 1.07 0.10 5.7 14.6 28.1 15.3 4.9 8.3 12.6 11.9 42.0 5.7 13.5 34.8 20.3 5.7 9.6 12.5 12.0 45.8 7.1 8.8 19.6 22.8 13.3 16.6 16.0 17.4 14.1 7.1 9.6 15.8 17.2 11.6 14.3 16.1 17.3 12.9 0.0 2.2 2.2 2.1 3.8 0.7 2.7 1.4 4.2 0.0 2.2 2.2 2.7 3.8 0.7 2.7 1.4 4.2 0.51 1.35 5.52 3.61 0.74 1.39 2.15 2.48 6.15 -20.6 -4.6 -0.4 -3.0 -10.2 -0.7 -6.0 -16.4 -4.1 0.37 0.82 4.65 3.07 0.34 0.41 1.56 1.46 5.57 11.0 58.1 18.3 14.0 94.1 240.7 29.5 41.7 5.9 -6.9 22.9 15.1 9.4 9.1 140.0 18.8 20.4 0.3 1.99 2.00 0.48 11.0 11.5 18.1 17.3 5.0 5.0 2.19 -9.1 1.93 3.1 -1.0 15.02 18.40 17.84 21.08 0.51 0.59 74.8 93.1 81.3 20.1 101.9 19.8 18.5 18.1 5.0 4.6 5.4 5.0 15.30 19.10 -1.8 -3.7 13.10 15.12 14.7 21.7 7.9 12.3 2.24 7.45 25.32 1.22 83.48 3.55 1.97 4.90 0.91 2.23 8.62 27.41 1.39 88.66 4.10 2.50 4.41 1.23 0.50 0.36 0.33 0.48 0.36 0.51 0.66 0.44 0.58 6.5 26.4 120.5 6.1 293.5 22.3 27.5 15.7 8.1 7.5 30.5 148.1 6.2 326.2 24.7 27.5 16.6 11.6 34.4 28.2 21.0 20.1 28.4 15.9 7.2 31.2 11.2 29.8 24.4 17.1 19.6 25.6 14.4 7.2 29.4 7.8 1.8 4.0 2.8 4.9 3.3 4.2 3.0 0.9 2.8 2.1 4.7 3.0 4.9 3.4 4.8 4.1 1.0 3.9 3.00 8.89 27.00 1.33 83.68 3.66 2.04 5.00 1.07 -25.3 -16.2 -6.2 -8.1 -0.2 -2.9 -3.4 -2.0 -15.4 2.11 7.30 22.44 1.13 74.12 2.26 1.43 4.14 0.78 6.2 2.1 12.8 7.9 12.6 57.0 37.8 18.3 16.0 -12.8 1.7 7.8 6.0 6.8 39.8 13.9 13.1 13.8 43.50 52.08 1.03 198.6 187.4 21.9 23.2 4.6 4.6 55.64 -21.8 40.61 7.1 -1.5 9.49 5.58 11.53 6.58 1.35 1.27 49.3 25.7 55.5 27.9 19.2 21.7 17.1 20.0 0.5 1.4 0.6 1.6 10.00 6.38 -5.1 -12.5 7.50 4.19 26.6 33.1 19.4 23.5 2.53 0.12 3.34 0.13 0.73 1.28 19.3 0.4 23.3 0.4 13.1 33.1 10.9 33.2 5.5 0.0 6.3 0.0 3.42 0.16 -26.0 -25.0 2.48 0.05 2.0 140.0 -14.5 140.0 5.93 4.20 6.65 4.70 0.76 0.51 10.3 13.3 16.4 16.5 57.5 31.5 36.2 25.5 0.7 1.5 0.7 1.8 6.73 4.37 -11.9 -3.9 5.54 3.85 7.0 9.1 -6.6 0.5 7.21 6.49 2.01 5.75 1.71 6.05 7.70 1.80 5.80 2.40 0.58 0.16 0.35 -0.20 0.29 20.0 35.8 12.3 26.5 3.7 24.2 40.5 15.3 30.2 6.1 36.0 18.1 16.3 21.7 45.8 29.8 16.0 13.1 19.0 28.2 1.3 2.8 1.8 2.3 0.5 1.5 3.1 2.3 2.6 0.9 7.22 7.07 2.38 5.94 2.64 -0.1 -8.2 -15.5 -3.2 -35.2 4.06 5.62 1.88 4.20 1.65 77.6 15.5 6.9 36.9 3.6 49.3 -1.5 -4.7 7.5 -27.5 INDUSTRIAL SCIENTX SKPRES 8.61 1.30 9.69 1.90 0.54 0.52 54.4 8.6 66.4 11.4 15.8 15.1 13.0 11.4 2.1 3.2 2.3 4.3 8.99 1.44 -4.2 -9.7 6.01 1.15 43.3 13.0 28.5 0.8 MEDIA ASTRO MEDIA PRIMA STAR 2.63 0.94 2.32 3.45 0.60 1.40 1.04 0.69 0.63 13.2 1.7 7.1 14.5 2.8 6.5 19.9 55.1 32.7 18.2 33.3 35.8 4.8 1.5 7.8 4.9 2.4 7.8 3.01 1.52 2.70 -12.6 -38.2 -14.1 2.51 0.94 2.19 4.8 0.5 5.9 1.2 -18.3 3.6 -14.5 -29.7 -5.9 -12.0 -8.7 -22.9 -56.7 0.19 0.81 7.03 0.44 6.43 1.33 0.45 210.5 0.6 5.7 34.5 10.7 21.8 1.1 131.4 -10.9 1.1 31.5 2.0 0.0 -48.6 -18.7 1.30 23.8 -5.3 BANKS & FINANCIAL SERVICES AFG 3.82 AFFIN 2.68 AMBANK 4.89 CIMB 6.64 HLBANK 15.70 MAYBANK 9.63 PBBANK 20.30 5.08 RHBBANK BURSA 10.48 CONSTRUCTION BPURI GADANG GAMUDA IJM PESONA SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N HUPSENG NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX OIL & GAS DNEX 0.59 0.74 1.04 3.5 4.3 17.0 13.9 1.7 1.7 0.69 MHB 0.82 0.95 1.84 -1.2 1.3 na 62.2 0.0 0.0 1.16 MISC 7.43 7.65 0.79 61.4 54.7 12.1 13.6 4.0 4.0 7.90 PANTECH 0.59 0.69 1.27 4.1 5.0 14.1 11.7 3.1 3.4 0.67 PCHEM 7.12 7.91 1.07 39.2 41.6 18.2 17.1 2.9 3.1 7.80 SENERGY 1.62 2.01 2.51 6.6 4.0 24.5 40.9 0.0 0.0 2.10 UMWOG 0.45 0.80 2.04 -12.0 -3.6 na na 0.0 0.0 1.04 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.61 1.55 1.46 12.0 12.9 13.5 12.5 0.0 0.0 1.98
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 1.71 3.08 4.50 24.86 9.57 6.53 Target Price BETA (RM) 1.55 3.88 4.15 26.19 10.02 7.52 1.77 0.47 1.07 0.86 1.23 0.46 EPS (sen) PER (X) FY17 FY18 FY17 FY18 4.2 12.3 18.7 111.8 34.0 37.6 8.5 15.7 21.0 119.1 37.5 34.5 40.5 25.1 24.1 22.2 28.1 17.4 20.1 19.6 21.4 20.9 25.5 19.0 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 2.9 2.3 2.2 2.2 2.6 3.5 2.9 2.6 2.7 2.4 3.2 2.6 2.52 3.70 4.81 25.50 9.70 6.58 -32.1 -16.8 -6.4 -2.5 -1.3 -0.8 1.42 3.00 4.21 22.92 7.41 5.53 PROPERTY GLOMAC 0.66 0.70 0.60 1.6 6.3 41.1 10.4 4.6 4.6 0.83 -20.6 0.65 HUAYANG 1.04 1.07 0.66 17.3 17.4 6.0 6.0 3.8 3.4 1.43 -27.4 1.04 IBRACO 0.84 0.92 0.36 4.9 10.2 17.2 8.2 4.2 4.8 1.05 -20.0 0.79 IOIPG 2.16 2.25 0.89 17.4 17.4 12.4 12.4 3.2 3.5 2.46 -12.2 1.85 MAHSING 1.56 1.70 0.76 14.4 14.2 10.8 11.0 4.2 4.2 1.70 -8.2 1.34 SNTORIA 0.86 0.98 0.29 6.2 10.3 13.9 8.3 1.2 1.2 1.00 -14.0 0.69 SPB 4.84 5.98 0.59 25.6 22.8 13.2 14.8 4.1 4.1 5.19 -6.7 4.32 SPSETIA 3.38 4.10 0.69 11.7 12.6 33.6 31.2 1.3 1.3 4.50 -24.9 2.80 SUNWAY 3.93 3.95 0.47 15.5 15.8 17.1 16.7 6.9 6.9 4.05 -3.0 2.84 Note: SUNWAY proposed bonus issue of shares and warrants. Ex-Target price RM1.69. For more details please refer to 15.06.17 report. REIT SUNREIT 1.74 1.86 0.52 8.9 10.1 19.6 17.2 5.1 5.8 1.84 -5.4 1.63 CMMT 1.54 1.72 0.59 8.1 8.6 19.1 17.9 5.5 5.8 1.72 -10.5 1.45 % Chg YTD 20.4 2.7 6.9 8.5 29.1 18.1 10.3 -9.4 2.3 3.6 18.1 8.8 0.8 0.0 7.0 16.9 16.4 24.6 12.0 20.7 38.3 -5.8 -8.0 -16.0 10.8 9.1 7.5 9.5 8.0 31.0 6.7 6.2 1.2 0.7 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.06 24.14 18.70 14.14 1.44 1.23 21.47 19.60 17.37 1.90 0.75 0.77 0.77 1.02 0.54 7.1 98.4 88.2 131.9 8.2 6.4 102.3 101.3 130.8 10.7 14.9 24.5 21.2 10.7 17.5 16.5 23.6 18.5 10.8 13.5 6.6 3.0 3.3 3.1 6.9 6.6 3.1 3.8 3.2 6.9 1.80 25.70 22.66 14.90 1.64 -41.1 -6.1 -17.5 -5.1 -12.2 1.04 22.92 18.10 13.00 1.39 1.9 5.3 3.3 8.8 3.6 -22.6 1.4 -12.2 1.7 -3.4 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 4.88 5.01 5.61 6.61 5.50 4.95 6.05 7.50 1.30 0.92 0.70 0.66 15.0 20.8 25.4 21.4 16.7 21.1 26.1 22.3 32.5 24.0 22.1 30.8 29.3 23.8 21.5 29.6 1.6 4.2 3.6 2.9 1.7 4.2 3.6 3.0 5.99 5.19 6.60 6.90 -18.5 -3.5 -15.0 -4.2 4.11 4.64 5.50 5.81 18.7 8.0 2.0 13.8 3.4 3.7 -6.2 11.1 TECHNOLOGY Semiconductor & Electronics IRIS 0.18 INARI 2.13 MPI 13.36 UNISEM 3.53 0.28 2.40 15.90 4.10 1.35 0.79 0.52 0.82 -2.6 10.3 94.2 26.9 -0.3 na 12.6 20.7 115.7 14.2 29.1 13.1 na 16.9 11.6 12.1 0.0 3.8 2.0 3.4 0.0 2.3 2.0 3.4 0.24 2.23 13.50 3.70 -27.1 -4.5 -1.0 -4.6 0.10 1.41 7.20 2.27 75.0 51.4 85.6 55.5 59.1 28.3 80.3 49.6 3.24 8.70 3.23 8.10 1.14 1.46 37.6 17.2 35.9 17.5 8.6 50.5 9.0 49.7 1.2 1.1 1.5 1.1 3.59 9.45 -9.7 -7.9 2.16 5.76 50.0 51.0 41.5 43.6 1.76 3.63 2.05 4.05 0.75 0.67 14.3 17.1 22.7 15.1 12.3 21.2 7.7 24.0 2.4 3.5 4.0 3.1 1.87 4.59 -5.9 -20.9 1.44 3.62 22.2 0.3 10.7 -15.6 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 20.86 OCBC 10.95 UOB 23.52 PLANTATIONS WILMAR IFAR 3.48 0.48 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 23.30 12.00 25.40 1.22 1.13 1.08 173.8 87.7 195.6 190.2 12.0 92.4 12.5 209.3 12.0 11.0 11.8 11.2 2.9 5.7 3.0 2.9 6.7 3.0 21.2 11.0 24.0 -1.5 0.0 -2.1 14.72 8.84 17.51 41.7 32.4 34.3 20.3 22.8 15.3 3.72 0.53 0.92 1.13 28.9 4.9 31.1 5.2 11.2 9.2 2.3 2.5 2.6 2.7 4.0 0.6 -13.0 -19.3 2.96 0.44 17.6 9.1 -3.1 -8.6 12.0 9.9 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
12. TA Securities COMPANY UPDATE Friday , June 30, 2017 A Member of the TA Group FBMKLCI: 1,771.36 Sector: Consumer MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Aeon Co. (M) Berhad TP: RM2.23 (-0.4%) Last Traded:RM2.24 Disposal of Aeon Mahkota Cheras Sell THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Damia Othman Tel: +603-2072 1277 ext. 9602 damia@ta.com.my The Disposal Yesterday, Aeon announced to Bursa Malaysia that the group has entered into a Sale and Purchase Agreement (SPA) with Foremost Wealth Management Sdn. Bhd. to dispose of Aeon Mahkota Cheras mall for a total sale consideration of RM87.8mn. The Mahkota Cheras mall is a 2-storey retail shopping centre erected on a piece of freehold land, measuring 28,328 square meter. Currently, the mall is occupied by departmental stores cum supermarket that include i) Aeon store, ii) Daiso and iii) Aeon Wellness retail shops. After the disposal, this would bring down the total number of Aeon outlets to 31 Aeon stores and Aeon Wellness and 28 Daiso shops. Based on independent valuer report, the sales consideration works out to RM290/sqf based on the both market value and income approaches, which we believe is fair. www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) Par Value 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) Aeon Co Aberdeen EPF Aeon MK 6599 Main Market 1,404.0 3,145.0 1.0 3.00 / 2.11 684.4 32.1 0.5 51.7 19.0 7.7 Forecast Revision 50 5,000.0 45 4,500.0 40 4,000.0 35 3,500.0 30 3,000.0 25 2,500.0 20 2,000.0 15 1,500.0 10 1,000.0 500.0 5 0 FY12 Malls FY13 Stores FY14 FY15 FY16 Aeon Wellness FY17F Daiso Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY18F Group Revenue Source: Company, TA Research Impact Post disposal, FY18 revenue is expected to decline by 0.3%. Meanwhile, the estimated cost of operation is expected to reduce by 0.3% too. Overall, the disposal would reduce our FY18 core profit projection by 0.8%. Net debt/equity (%) ROE (%) ROA (%) NTA/Share (RM) Price/ NTA (x) Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth Forecast Management guided that the disposal is estimated to provide a gain of RM17mn. Hence, we increase our FY17 reported earnings projection by 16.3% (core profit to decline by 1.9%) and reduce FY18 core earnings by 0.8%. FY17 35.8 5.6 2.4 1.4 1.6 Aeon (4.3) (5.1) (12.8) (14.2) FY18 34.1 5.4 2.2 1.4 1.6 FBM KLCI 0.3 1.8 7.9 7.1 (12-Mth) Share Price relative to the FBM KLCI According to announcement, the disposal proceeds, which is equivalent to 6.2sen/share, would be utilised as working capital. In our forecast, we expect the proceeds to be used to finance FY18 capex of RM450mn. As such, we maintain our dividend projections of 4.8sen/share. Page 1 of 3 FY17 FY18 (1.9) (0.8) 91.5 105.6 103.0 119.1 88.8 88.6 Sell (Maintained) Financial Indicators RMmn Units Figure 1: 29 Malls, 28 Daiso Shops, 31 Stores and Aeon Wellness in FY17 Source: Bloomberg
13. TA Securities 30-Jun-17 A Member of the TA Group Valuation Maintain Sell recommendation on the stock based on DDM valuation of unchanged target price of RM2 .23/share. The disposal comes as no surprise as management has guided that the group will close any underperforming stores/malls in order to streamline operating expenses in an effort to reduce the strain on the balance sheet as well as focusing on developing the group’s retail business. Earnings Summary (RMmn) INCOME STATEMENT FYE December 31 (RMmn) Revenue EBIT EI D&A Net finance cost Reported PBT Taxation MI Core net profit Core EPS GDPS 2015 3,834.6 227.0 0.0 (216.9) (16.4) 210.8 (79.2) 0.0 129.9 (sen) 9.3 (sen) 4.0 CASH FLOW STATEMENT FYE December 31 (RMmn) PBT Adjustments for: D&A Interest income Interest expense Associate Others Op profit before working capital 2016 4,038.7 181.2 0.0 (267.5) (35.0) 147.1 (72.1) 0.1 70.2 5.0 3.0 2017E 4,251.5 255.0 17.0 (294.1) (42.1) 212.9 (104.4) 0.0 91.5 6.5 4.1 2018F 4,711.6 250.3 0.0 (311.6) (43.0) 207.2 (101.6) 0.0 105.6 7.5 4.8 2019F 4,942.9 280.9 0.0 (323.4) (44.6) 236.3 (115.9) 0.0 120.4 8.6 5.5 2015 210.8 2016 147.1 2017E 212.9 2018F 207.2 2019F 236.3 216.9 (2.0) 18.5 (0.3) (0.1) 443.9 267.5 (2.0) 37.0 (0.9) 7.3 456.1 294.1 (0.5) 42.6 0.0 (87.8) 461.4 311.6 (1.6) 44.6 0.0 0.0 561.9 323.4 (2.0) 46.6 0.0 0.0 604.3 Change in WC Inventories Receivables Payables Tax Others CFO (58.7) 2.8 (6.4) (108.4) 467.5 296.9 (37.2) 3.6 138.0 (72.1) 433.3 465.5 (2.6) 9.0 (23.7) (104.4) 0.0 339.7 (66.8) 6.6 163.9 (101.6) 0.0 564.0 (33.6) 4.2 82.4 (115.9) 0.0 541.5 Acquisition & capex Disposal Interest income Others CFI (709.5) 3.1 2.0 (0.2) (704.6) (711.3) 1.9 2.0 13.9 (693.6) (500.0) 87.8 0.0 0.0 (412.2) (450.0) 0.0 0.0 0.0 (450.0) (450.0) 0.0 0.0 0.0 (450.0) Net borrowing Share buy back Share issues Interest paid Dividend Others CFF 633.5 0.0 0.0 (18.5) (70.2) 0.0 544.8 195.5 0.0 0.0 (36.6) (56.2) 7.5 110.3 100.0 0.0 0.0 (42.1) (56.9) 0.0 1.0 50.0 0.0 0.0 (43.0) (66.7) 0.0 (59.7) 50.0 0.0 0.0 (44.6) (77.4) 0.0 (72.1) Net increase / (decrease) in cash Cash and cash equivalents b/f Cash and cash equivalents c/f 137.1 76.7 213.9 (117.8) 213.9 96.0 (71.5) 96.0 24.6 54.2 24.6 78.8 19.4 78.8 98.2 Page 2 of 3 BALANCE SHEET FYE December 31 (RMmn) PPE Intangible assets Associate Others Total Non-current assets 2015 3,032.1 18.4 7.1 53.1 3,110.6 2016 3,460.5 20.6 8.0 61.6 3,550.7 2017E 3,666.3 20.6 8.0 61.6 3,756.6 2018F 3,804.7 20.6 8.0 61.6 3,894.9 2019F 3,931.3 20.6 8.0 61.6 4,021.5 577.5 70.9 213.9 931.7 614.7 67.3 96.0 867.0 617.3 58.2 24.6 789.1 684.1 51.6 78.8 903.6 717.7 47.4 98.1 952.3 Total Assets 4,042.3 4,417.7 4,545.7 4,798.5 4,973.8 Payables Taxation Borrowings Total Current liabilities 1,400.0 0.0 690.7 2,090.7 1,537.9 0.0 640.3 2,178.2 1,514.2 0.0 710.3 2,224.5 1,678.1 0.0 745.3 2,423.4 1,760.5 0.0 780.3 2,540.8 79.2 27.9 107.1 325.1 36.0 361.0 355.1 36.0 391.0 370.1 36.0 406.0 385.1 36.0 421.0 Share capital Others Retained profits Minority Interest Total Equity 702.0 0.0 1,131.6 10.9 1,844.5 702.0 0.0 1,162.8 13.7 1,878.5 702.0 0.0 1,214.4 13.7 1,930.1 702.0 0.0 1,253.4 13.7 1,969.0 702.0 0.0 1,296.3 13.7 2,012.0 Total Equity and Liabilities 4,042.3 4,417.7 4,545.7 4,798.5 4,973.8 Inventories Receivables Cash Total Current assets Borrowings Others Total Non Current liabilities RATIOS FYE December 31 (RMmn) Valuations PER (x) P/NTA (x) Dividend yield (%) 2015 2016 2017E 2018F 2019F 24.2 1.7 1.8 44.8 1.7 1.3 34.4 1.6 1.8 29.8 1.6 2.1 26.1 1.6 2.5 Profitability ratios ROE ROA (%) (%) 7.0 3.2 3.7 1.6 4.7 2.0 5.4 2.2 6.0 2.4 Margin (%) EBIT margin Net margin (%) (%) 5.9 3.4 4.5 1.7 6.0 2.2 5.3 2.2 5.7 2.4 Growth (%) Sales EBIT Net profit (%) (%) (%) 3.5 (21.0) (38.4) 5.3 (20.2) (46.0) 5.3 40.7 30.4 10.8 (1.9) 15.4 4.9 12.2 14.0
14. TA Securities 30-Jun-17 A Member of the TA Group ( T HI S P AGE I S I NT E N T I ON AL L Y L E FT B L ANK) 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 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. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
15. COMPANY UPDATE TA Securities Friday , 30 June 2017 FBM KLCI: 1,771.36 Sector: Consumer A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Signature International Berhad TP: RM1.23 (+36.1%) Last traded: RM0.905 Renewed Hope on Battersea Project BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY Tan Kam Meng, CFA Tel: +603-2167 9605 kmtan@ta.com.my Installation works in full swing Signature International’s (Signature) order book declined slightly to RM232mn in Apr-17 from RM245mn a month ago due to higher progress billing. According to management, despite securing few small projects in Apr-17, the order book depleted slightly as installation works have been progressing in full swing. www.taonline.com.my Share Information Bl oombe rg Code SI GN MK Stock Code SI GN (7246) Li s ti ng Ma i n Ma rket Sha re Ca p (mn) 229.1 Ma rke t Ca p (RMmn) 207.3 Pa r Va l ue (RM) This would assure the group’s 4QFY17 (referring to Apr-June) earnings likely be higher than the first three quarters of FY17. Note that in our previous results note, we expected Signature to achieve the earnings shortfall in 4QFY17 after the company reported 9MFY17 earnings, which accounted for only 46% of our fullyear forecast. More importantly, we expect the current heavy work flow to spill over to FY18, resulting in a strong earnings growth for the year. According to management, at least 50% of the current order book would be recognised in FY18. 0.3 52-wk Hi /Lo (RM) 1.07/0.78 12-mth Avg Da i l y Vol ('000 s hrs ) 623.0 Es ti ma te d Fre e Fl oa t (%) 41.6 Beta (x) 0.6 Major Shareholders (%) Ta n Kee Chong (26.1%) Chooi Yeoy Sun (25.9%) RHB As s et Ma na gement (6.4%) Forecast Revision Renewed hope on Battersea Recall, in the first round of qualifying progress, Signature was not invited to bid for Battersea Phase 2 project, comprising 255 units of high-end apartments. Lately, we understand from management that the company has sent a project team to visit its supplier’s showroom in Italy. Also, Signature has been asked to work on quotations for several different kitchen specs requested by the team. This has renewed our hope on the award of Battersea project to Signature. In terms of timeline, we expect the project award to take place in 2017 after taking into account: 1) Battersea Phase 2 has already achieved a take up rate of 91%; 2) the project is targeted for completion in 4Q19; 3) manufacturing and installation of kitchen system may take up to 1 year to complete. In terms of contract value, we estimate it to be around £10-15mn after taking into account: 1) total project GDV of £799mn for Battersea Phase 2, which is equivalent to £3.1mn per unit; 2) kitchen system worth approximately 0.15% of project GDV, which is equivalent £40,000-60,000 per unit. Increase in sales of kitchen voucher Back home, management indicates that contract awards remain healthy despite the slowdown in the property market in Malaysia. Interestingly, management has seen some changing signs on how property developers place orders for kitchen system for their housing projects. Instead of a formal award of kitchen contract to Signature, there has been a growing interest in buying kitchen vouchers to be given away to home buyers by developers. This could be a way of managing company’s cash flow by developers to mitigate the slowdown in the property sector. We opine that the sale of voucher is a leading indicator of Signature’s future sales potential. We are mildly positive on this as every voucher sold could possibly land the company potential jobs that more than the value of the vouchers. As at end Apr-17, Signature has accumulated RM30mn from the sales of vouchers. Page 1 of 3 Fore ca s t Re vi s i on (%) FY17 FY18 (12.4) (9.1) 27.8 Ne t profi t (RMm) 19.5 Cons e ns us 19.8 25.8 TA's / Cons e ns us (%) 98.3 108.0 Previ ous Ra ti ng Buy (Ma i nta i ned) Financial Indicators FY17 FY18 Ne t Ge a ri ng (%) 0.1 Ne t ca s h FCF/s ha re (s en) (32.0) 12.7 nm 7.2 11.6 15.1 NTA/Sha re (RM) 0.7 0.8 Pri ce/NTA (x) 1.2 1.1 Price Change SIGN FBM KLCI 1 mth (5.2) 0.3 3 mth (7.2) 1.8 6 mth 13.8 7.9 12 mth (7.7) 7.1 P/CFPS (x) ROE (%) Share Performance (%) (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg
16. TA Securities 30-Jun-17 A Member of the TA Group Based on management ’s estimates, these vouchers could be used and redeemed in late-2018. Margins could be under pressure Despite having a healthy order book, management has guided that some of the jobs are priced at competitive rates. As such, the profit margin could be affected. Note that due to softening of property market, developers have been very selective when come to sub-contractors’ works. Contract pricing has become the utmost factor in contract award. Forecast As such, we downgrade our FY17-19 earnings projections by 9.1-12.4% after revising our project margin assumption lower by 2%-pts. Valuation We reiterate our Buy recommendation on the stock with a revised target price of RM1.23 based on 10x CY18 EPS. We continue to like Signature for its strong brand equity in Malaysia. At current price levels, the stock is trading at a forward CY18 PE of 7.3x, which has not captured the possible future gains from unlocking Bandar Enstek land and earnings recovery in FY18-19. Profit and Loss (RM'mn) FYE June Revenue COGS Gross profit 2015 273.5 (181.0) 92.5 2016 196.8 (138.6) 58.2 2017F 252.5 (176.8) 75.7 2018F 255.9 (166.8) 89.2 2019F 256.5 (163.3) 93.2 EBITDA Depr. & Amor. Net finance cost EI PBT Adj PBT Tax MI Net profit Core profit EPS (sen)* DPS (sen)* 55.1 (2.8) (2.4) (2.9) 46.9 49.9 (12.2) (1.1) 33.6 36.5 15.2 5.0 43.5 (3.0) (2.1) 23.5 62.0 38.5 (11.4) (2.8) 47.8 24.3 10.2 12.0 34.6 (4.4) (3.6) 0.0 26.7 26.7 (6.4) (0.8) 19.5 19.5 8.1 2.5 48.9 (5.8) (5.0) 0.0 38.1 38.1 (9.1) (1.1) 27.8 27.8 11.6 3.5 51.5 (5.8) (2.7) 0.0 43.0 43.0 (10.3) (1.3) 31.4 31.4 13.0 4.0 Cash Flow (RM'mn) FYE June PBT Non- cash item Chg in working capital Tax Others CFO 2015 46.9 6.0 (15.9) (13.8) (0.8) 22.4 2016 62.0 (37.7) (6.3) (13.0) 18.5 23.5 2017F 26.7 4.4 (36.6) (6.4) 0.0 (11.9) 2018F 38.1 5.8 0.6 (9.1) 0.0 35.4 2019F 43.0 5.8 (0.2) (10.3) 0.0 38.3 Capex Others CFI (4.3) (7.9) (12.1) (1.8) 52.7 50.8 (65.0) 0.0 (65.0) (5.0) 0.0 (5.0) (4.0) 0.0 (4.0) Net Borrowing/Rpmt Dividend Paid Others CFF 1.7 (6.0) 1.6 (2.7) (3.4) (13.8) (3.6) (20.9) 40.0 (6.0) 0.0 34.0 (5.0) (8.4) 0.0 (13.4) (4.0) (9.6) 0.0 (13.6) Key Assumptions (RM'mn)2015 Project revenue 208.7 Retail sales 64.8 New projects secured New bids - 2016 141.8 55.0 - 2017F 189.6 63.0 194 350 2018F 191.1 64.8 193 400 2019F 189.7 66.8 215 400 Balance Sheet (RM'mn) FYE June PPE Investment properties Others LT Assets 2015 49.3 35.9 2.3 87.5 2016 36.3 35.6 3.5 75.5 2017F 97.0 35.6 3.5 136.1 2018F 96.2 35.6 3.5 135.3 2019F 94.4 35.6 3.5 133.5 Inventories Trade & other receivables Cash & Cash equivalent Others ST Assets 17.6 71.6 47.2 38.8 175.2 17.0 62.7 93.3 42.2 215.3 26.6 89.5 50.4 42.2 208.8 25.1 90.5 67.4 42.2 225.3 24.6 90.7 88.0 42.2 245.6 Total Assets 262.7 290.8 344.9 360.5 379.1 Trade and other payables ST Borrowings Others ST Liabilities 49.0 3.3 37.7 90.1 55.3 3.7 42.6 101.5 55.1 3.7 42.6 101.3 55.3 3.7 42.6 101.5 54.7 3.7 42.6 100.9 LT Borrowings Others LT Liabilities 20.6 2.9 23.5 21.2 2.9 24.1 61.2 2.9 64.1 56.2 2.9 59.1 52.2 2.9 55.1 Share Cap Reserves Shareholder's Funds MI 60.0 84.8 144.8 4.3 60.1 100.6 160.7 4.5 60.1 114.1 174.1 5.3 60.1 133.5 193.5 6.5 60.1 155.3 215.4 7.7 Liabilities + Equities 262.7 290.8 344.9 360.5 379.1 Ratios EPS Growth (%) PER (x)* Div Yield (%)* Net cash (RMm) Net gearing (x) ROE (%) ROA (%) NTA (RM)* P/NTA (x)* EV/EBITDA (x) * Based on outstanding shares of 240mn after the proposed share split of 1 into 2 shares Page 2 of 3 2015 2016 52.0 (32.8) 6.0 8.9 5.5 13.3 23.2 68.5 Net cash Net cash 27.5 15.9 15.0 8.8 0.60 0.67 1.5 1.4 3.5 3.4 2017F (20.6) 11.2 2.8 (14.5) 0.1 11.6 6.1 0.72 1.2 6.7 2018F 2019F 42.9 12.5 7.8 6.9 3.9 4.4 7.5 32.2 Net cash Net cash 15.1 15.4 7.9 8.5 0.81 0.90 1.1 1.0 4.3 3.6
17. TA Securities 30-Jun-17 A Member of the TA Group ( T HI S P AGE I S I NT E N T I ON AL L Y L E FT B L ANK) 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 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. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
18. Friday , 30 June, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports a. Daily Technical Stock Picks b. Daily Stock Screen 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. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
19. T e c h n i c a l TA Securities V i e w Friday , June 30, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Technical Stock Picks Malaysia FBM KLCI: 1,771.36 (+0.13, +0.01%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD EKOVEST GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 29/6/2017 1771.36 2.68 3.82 4.89 4.88 6.64 5.01 5.50 9.49 5.58 5.93 4.50 1.06 5.61 9.63 1.34 5.08 9.57 14.14 6.61 3.63 3.24 0.41 0.77 0.41 4.06 1.92 1.67 1.20 1.29 1.63 1.58 2.27 1.26 1.38 1.37 1.28 1.62 2.02 1.20 0.95 2.07 Change 0.13 0.01 0.01 0.02 -0.03 -0.04 0.00 0.02 -0.01 -0.01 0.01 0.05 0.00 0.00 0.00 0.00 0.01 -0.04 0.00 -0.01 -0.02 0.07 0.00 0.02 0.00 -0.01 -0.02 0.01 -0.02 0.00 -0.01 -0.02 0.02 -0.01 0.02 0.02 0.03 0.05 -0.02 0.00 0.02 0.02 Tel: +603-2167-9607 High Low 1,775.85 1,770.53 2.70 3.86 4.95 4.95 6.69 5.02 5.52 9.63 5.67 5.98 4.51 1.06 5.61 9.64 1.35 5.10 9.61 14.20 6.63 3.67 3.24 0.42 0.77 0.41 4.07 1.94 1.68 1.23 1.30 1.64 1.62 2.27 1.27 1.43 1.37 1.29 1.64 2.04 1.21 0.95 2.08 2.66 3.81 4.87 4.88 6.63 5.00 5.49 9.49 5.58 5.93 4.45 1.05 5.60 9.61 1.33 5.05 9.55 14.10 6.58 3.63 3.17 0.41 0.76 0.41 4.04 1.91 1.66 1.20 1.28 1.62 1.58 2.26 1.26 1.37 1.34 1.25 1.56 2.01 1.19 0.93 2.04 Bollinger Bands Lower Mid Upper 1,762.30 1,780.67 1,799.04 2.63 3.76 4.84 4.86 6.40 4.94 5.29 9.48 5.48 5.83 4.44 1.04 5.44 9.42 1.29 4.95 9.36 13.69 6.44 3.58 2.97 0.40 0.71 0.40 4.04 1.90 1.53 1.17 1.25 1.60 1.57 2.23 1.25 1.33 1.32 1.22 1.54 1.96 1.18 0.88 2.02 2.69 4.02 5.03 4.98 6.64 4.98 5.39 9.78 5.68 5.97 4.51 1.13 6.00 9.57 1.33 5.16 9.56 14.15 6.56 3.79 3.22 0.41 0.76 0.41 4.09 1.93 1.61 1.20 1.28 1.63 1.62 2.26 1.28 1.47 1.39 1.28 1.77 2.03 1.25 0.94 2.11 2.74 4.28 5.22 5.10 6.87 5.02 5.49 10.08 5.87 6.11 4.58 1.21 6.56 9.72 1.37 5.36 9.75 14.61 6.68 3.99 3.46 0.43 0.80 0.43 4.14 1.96 1.69 1.23 1.31 1.66 1.67 2.30 1.30 1.61 1.46 1.35 2.01 2.10 1.31 1.00 2.20 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 44.78 1,781.83 1,777.56 1,770.66 DMI DI + DI - ADX 25.40 15.54 28.21 42.03 32.22 36.20 36.80 63.61 51.89 66.11 39.34 45.58 46.59 47.60 22.53 15.70 65.11 54.55 37.92 60.51 52.37 57.84 36.36 50.67 42.81 53.03 39.65 37.53 50.27 62.18 45.59 51.70 45.34 34.61 51.25 41.75 45.56 41.90 40.83 34.52 50.23 39.40 55.09 43.94 18.89 9.35 17.89 13.85 35.01 10.92 28.68 10.14 24.30 13.96 20.12 3.29 8.00 23.91 24.10 14.86 28.37 24.98 19.45 19.27 21.01 15.24 26.05 24.54 9.72 18.34 30.55 18.51 12.64 21.88 21.14 31.24 29.26 26.24 16.74 18.81 17.17 17.65 11.76 33.96 17.87 2.68 3.93 5.02 4.97 6.68 4.99 5.42 9.69 5.66 5.97 4.49 1.10 5.78 9.62 1.34 5.09 9.60 14.27 6.61 3.70 3.23 0.41 0.75 0.42 4.07 1.93 1.64 1.20 1.29 1.63 1.61 2.26 1.27 1.42 1.38 1.27 1.71 2.01 1.23 0.95 2.08 2.74 4.11 5.14 5.05 6.45 5.00 5.39 9.81 5.76 5.93 4.53 1.15 6.17 9.50 1.32 5.24 9.48 14.04 6.53 3.80 3.24 0.43 0.76 0.42 4.13 1.92 1.60 1.22 1.29 1.65 1.67 2.27 1.29 1.48 1.44 1.34 1.82 2.04 1.26 0.93 2.15 2.81 4.13 5.20 5.10 6.15 5.04 5.33 9.78 5.77 6.01 4.53 1.18 6.28 9.42 1.30 5.28 9.41 13.96 6.50 3.87 3.27 0.44 0.77 0.43 4.27 1.90 1.56 1.26 1.28 1.67 2.10 2.28 1.32 1.34 1.51 1.43 1.88 2.01 1.26 0.91 2.14 20.75 28.82 26.19 23.65 12.77 12.98 15.70 23.96 18.94 17.84 16.50 34.02 46.08 18.23 14.22 25.26 10.86 15.08 13.84 21.20 25.59 24.30 29.50 31.67 26.00 12.51 10.56 15.50 11.28 21.76 23.25 20.91 30.86 22.78 28.04 27.35 38.01 18.38 27.05 22.08 20.74 16.73 31.03 13.18 24.04 48.53 26.75 12.93 25.79 15.90 14.20 16.91 59.73 54.91 18.27 27.12 30.72 35.01 42.96 16.03 8.75 18.83 20.87 18.01 17.93 37.75 19.00 47.72 22.83 14.41 14.72 10.58 15.78 12.63 27.35 25.87 31.31 26.67 20.19 23.51 31.88 15.14 www.taonline.com.my Diff 9.86 (1.87) (19.47) (8.29) (9.80) 22.24 (2.06) 12.98 (13.82) 5.35 (3.88) 3.62 (30.73) (38.08) 5.68 9.88 (10.40) 17.51 9.90 5.60 (1.93) (4.58) (9.07) (7.14) (16.28) 5.83 5.83 19.98 3.01 1.36 0.12 (2.10) 10.33 (1.60) 3.45 (11.30) (8.54) (20.83) (0.74) (15.29) 11.87 (2.87) Line 1.57 -0.04 -0.09 -0.07 -0.05 0.14 -0.01 0.04 -0.06 -0.05 -0.01 -0.02 0.03 -0.21 0.07 0.01 -0.06 0.06 0.08 0.04 -0.06 -0.01 -0.01 -0.01 0.00 -0.05 0.01 0.03 -0.02 0.00 -0.01 -0.11 0.00 -0.01 0.00 -0.04 -0.05 -0.08 0.00 -0.02 0.01 -0.03 MACD Signal Diff 4.11 (2.536) -0.04 -0.07 -0.06 -0.04 0.18 -0.02 0.03 -0.03 -0.04 0.00 -0.02 0.02 -0.17 0.07 0.01 -0.06 0.07 0.11 0.04 -0.05 -0.01 -0.01 -0.01 0.00 -0.06 0.01 0.02 -0.02 0.00 -0.01 -0.14 0.00 -0.02 0.03 -0.05 -0.05 -0.05 0.00 -0.01 0.01 -0.02 0.005 (0.017) (0.009) (0.006) (0.035) 0.007 0.009 (0.035) (0.010) (0.003) (0.002) 0.002 (0.045) (0.008) (0.001) 0.001 (0.008) (0.027) 0.002 (0.011) (0.007) 0.001 (0.001) (0.000) 0.008 (0.004) 0.002 0.006 0.000 0.003 0.029 0.000 0.001 (0.029) 0.003 0.006 (0.025) (0.002) (0.007) (0.004) (0.008) DMI MACD Recent Signal BUY SELL DMI MACD Signal Change - SELL SELL SELL SELL BUY SELL BUY SELL BUY SELL BUY SELL SELL BUY BUY SELL BUY BUY BUY SELL SELL SELL SELL SELL BUY BUY BUY BUY BUY BUY SELL BUY SELL BUY SELL SELL SELL SELL SELL BUY SELL SELL BUY - BUY SELL SELL SELL SELL BUY BUY SELL SELL SELL SELL BUY SELL SELL SELL BUY SELL SELL BUY SELL SELL BUY SELL SELL BUY SELL BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY SELL SELL SELL SELL SELL SELL 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 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 2
20. Technical Comments : Take Profit on Tenaga & TM Bearish technical momentum on Tenaga implies correction potential to the 61.8%FR (RM14.02), with a breakdown to test better support from the 50%FR (RM13.75), mirroring the 100-day ma, while overhead resistance is from the upper Bollinger band (RM14.61). Similarly, TM shares should weaken before finding support from the 61.8%FR (RM6.48), with better support from the 50%FR (RM6.36), matching the 200-day ma level, and major overhead resistance from the 30/8/16 high (RM6.90). TENAGA RM14.14 (UNCH) Upper Middle BOLLINGER BANDS RM RM 14.61 14.15 10-day 30-day Lower RM 13.69 50-day BUY Recent Signal DMI Recent Signal 13.96 SELL Signal Change TM Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 14.27 RM 14.04 BOLLINGER BANDS RM RM RM DMI RM6.61 (-0.01) 6.68 6.56 6.44 BUY SIMPLE MOVING AVERAGES RM 6.61 RM 6.53 RM 6.50 DAILY MACD Recent Signal BUY Signal Change 10-day 30-day 50-day Page 2 of 2