Bursa Malaysia Daily Market Report - 30 March

Transcription

1. Friday , 30 March, 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 . P la n t a t io n S e c t o r : C o n tr a r ia n V ie w s 2 . S a p u r a En e rg y Bh d : H o la M e x ic o E & P 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 , D a i ly M on e y Fl ow , D ai l y St o ck S cr een (L o c al ) 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
2. Daily Market Commentary Friday , 30 March 2018 TA Research, e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (29.03.2018) (mil) Main Market 1,289.2 Warrants 388.7 ACE Market 206.7 Bond 1.9 ETF 0.0 LEAP 0.0 Total 1,886.5 Off Market 5.5 Volume +/-chg (RMmn) -160.7 1,967.1 76.8 80.4 -112.1 45.4 1.0 0.4 -1.5 0.1 0.0 0.0 2,093.4 -132.4 5.2 Value Value/ +/-chg Volume Up Down 263.8 1.53 232 336 15.5 0.21 65 141 -3.4 0.22 28 64 0.1 0.21 2 2 -1.6 1.67 3 3 0.0 0.00 0 0 1.11 330 546 -220.0 0.95 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP March Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA (mn) 2.3 @ 1.4 @ % YTD chg 1,856.35 12,985.51 14,859.95 1,858.00 -1.52 -7.34 -92.48 1.50 -0.08 -0.06 -0.62 0.08 3.31 0.33 -12.85 4.09 24,103.11 7,063.45 7,056.61 21,159.08 2,436.37 30,093.38 3,427.97 1,766.92 6,188.99 3,160.53 1,830.09 5,759.37 254.69 114.22 11.87 127.77 17.08 70.85 45.19 -18.07 48.15 38.24 17.74 -30.10 1.07 1.64 0.17 0.61 0.71 0.24 1.34 -1.01 0.78 1.22 0.98 -0.52 -2.49 2.32 -8.21 -7.05 -1.26 0.58 0.74 0.75 -2.62 -4.43 -3.65 -5.04 (RM) 0.80 0.25 Counter CIMB PCHEM IHH AXIATA MAXIS SIMEPLT DIGI PETGAS GENTING IOICORP Mkt Cap. Chg (RM’mn) (RM) 66,055 65,200 49,438 49,407 44,364 37,405 35,998 35,261 33,334 29,188 Important Dates P&O - 1:6 Bonus Issue - BI of up to 41.0m shares. 1 bonus share for every 6 existing shares held. LISTING ON: 30/03/2018. BURSA - 1:2 Bonus Issue - BI of up to 269.8m shares. 1 bonus share for every 2 existing shares held. Ex-Date: 10/04/2018. Entitlement Date: 12/04/2018. LISTING ON: 13/04/2018. -0.01 -0.10 -0.05 -0.02 -0.09 -0.02 -0.02 -0.02 -0.15 -0.02 The local market should stay range bound on listless trade today, given lacking leads with most regional markets closed for the Easter weekend holiday. Immediate support for the index stays at the 30-day moving average level at 1,855, matching yesterday's low, while better supports are the 50-day ma at 1,849 and lower Bollinger band at 1,834. Immediate resistance remains at last Thursday's high of 1,876, followed by the 2 Feb peak of 1,880 and significant hurdle will be from the record high of 1,896 from July 2014. Further pullback in Hiap Teck shares will be attractive to bargain for oversold rebound, with key retracement supports from the 76.4%FR (38sen) and 61.8%FR (34sen), and major hurdles from the 123.6%FP (51sen), 138.2%FP (55sen) and 150%FP (58sen). Likewise, further weakness on Malton towards key chart support at 70sen and 3/1/17 low (65sen) should find bargain hunters cushioning downside, while main upside hurdles after at the 23.6%FR (96sen) and 38.2%FR (RM1.14). News Bites Top 10 KLCI Movers Based on Mkt Cap. Off Market SUCCESS WEGMANS % chg Stocks closed softer in muted and sideways trade Thursday, with most investors sidelined ahead of the Easter weekend holiday. The KLCI ended 1.52 points down at 1,856.35, after oscillating between early high of 1,860.56 and low of 1,854.50, as losers beat gainers 546 to 330 on slow trade totaling 1.88bn shares worth RM2.09bn. Vol. (mn) 13.51 4.74 2.84 1.62 0.89 3.65 4.44 0.27 8.43 4.02 • Berjaya Assets Bhd has proposed a bonus issue of 1.3bn warrants on the basis of one warrant for every two shares held. • Excel Force MSC Bhd has proposed to dispose of its office premises in Plaza33 to the owner of the building for RM15.7mn, which will help it repay outstanding banking facilities of RM4.0mn. • Prestariang Bhd has been awarded an RM38.2mn contract by the Inland Revenue Board to provide Microsoft software licences, products and services under an extended master licensing agreement. • Sapura Energy Bhd has confirmed that a consortium in which it holds a 30% stake via wholly-owned Sapura Exploration and Production Sdn Bhd's has outbid six other bidders for an offshore oil block in Mexico. • Farlim Group (Malaysia) Bhd has proposed an issuance of one bonus share for every five existing shares, or a total of 28.1mn bonus shares. • Bumi Armada Bhd has clarified that it does not have any confirmed plan at this stage on the setting-up of a special-purpose vehicle and injecting some of its floating production storage and offloading assets into it as part of its plan to ease its debt burden. • OSK Holdings Bhd has submitted an application to the Hong Kong Stock Exchange to list its cable business unit OCC Cables Ltd on the main board. • Eco World Development Group Bhd's net profit for its 1QFY18 shrank 79% YoY to RM24.1mn, largely because the previous year had benefited from a RM94.8mn disposal gain. • Eco World International Bhd incurred a wider net loss of RM16.2mn for the 1QFY18 compared with RM6.1mn a year ago, due to lower unrealised foreign exchange gains. • Yinson Holdings Bhd's net profit grew 11.6% YoY to RM57.1mn in the 4QFY18 on higher contribution from its offshore & marine segment. • Crescendo Corp Bhd's net profit fell 79.3% YoY to RM2.4mn for the 4QFY18, no thanks to softer property sales. • Steelmaker Hiap Teck Venture Bhd's 2QFY18 net profit jumped to RM30.6mn from RM3.9mn a year ago due to better selling prices in both its trading and manufacturing divisions. • China does not want a trade war with the United States, but it won't accept any negotiations if they are hijacked unilaterally, China's commerce ministry said. • Initial jobless claims in the U.S. fell by 12,000 to a seasonally adjusted 215,000 in the week ended March 24. Exchange Rate USD/MYR 3.8675 0.011 USD/JPY 106.52 -0.340 EUR/USD 1.230 -0.0006 Commodities Futures Palm Oil (RM/mt) 2,404.00 -13.00 Crude Oil ($/Barrel) 64.91 0.25 Gold ($/tr.oz.) 1,325.00 2.10 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. Friday , March 30, 2018 FBMKLCI: 1,856.35 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 Listless Trade due to Easter Holiday Stocks closed softer in muted and sideways trade Thursday, with most investors sidelined ahead of the Easter weekend holiday. The KLCI ended 1.52 points down at 1,856.35, after oscillating between early high of 1,860.56 and low of 1,854.50, as losers beat gainers 546 to 330 on slow trade totaling 1.88bn shares worth RM2.09bn. Support at 1,855/1,849; Resistance at 1,876/1,880 The local market should stay range bound on listless trade today, given lacking leads with most regional markets closed for the Easter weekend holiday. Immediate support for the index stays at the 30-day moving average level at 1,855, matching yesterday’s low, while better supports are the 50-day ma at 1,849 and lower Bollinger band at 1,834. Immediate resistance remains at last Thursday’s high of 1,876, followed by the 2 Feb peak of 1,880 and significant hurdle will be from the record high of 1,896 from July 2014. Bargain Hiap Teck & Malton Further pullback in Hiap Teck shares will be attractive to bargain for oversold rebound, with key retracement supports from the 76.4%FR (38sen) and 61.8%FR (34sen), and major hurdles from the 123.6%FP (51sen), 138.2%FP (55sen) and 150%FP (58sen). Likewise, further weakness on Malton towards key chart support at 70sen and 3/1/17 low (65sen) should find bargain hunters cushioning downside, while main upside hurdles after at the 23.6%FR (96sen) and 38.2%FR (RM1.14). Major Asian Markets Shake Tech Woes to Close Up Many Asia-Pacific stock markets rebounded from early declines Thursday, but tech-sector concerns had them struggling to hold on to gains as the end of a rocky first quarter approached. Shares fluctuated throughout the region in subdued trading, with many traders wrapping up ahead of the Easter holiday. Possible government regulation of the tech sector has rattled investors, with Amazon losing over USD30 billion of its market value in overnight trade on a report U.S. President Donald Trump wants to rein in the growing power of the world’s largest online retailer. The rout in technology, where volatility is rising faster than the broader market, is deepening as the quarter draws to a close. Investors also took note of developments ahead of potential talks between the U.S. and North Korea after China confirmed that North Korean leader Kim Jong Un met with Chinese President Xi Jinping for talks. Japan’s Nikkei share average rose on Thursday, helped by gains in domestic-demand stocks. The Nikkei ended 0.6 percent higher at 21,159.08. Elsewhere, the Kospi tacked on 0.71 percent to end at 2,436.37 as losses in automakers and ship makers were offset by gains in steelmakers and banks. In down under, the ASX 200 shed 0.52 percent to close at 5,759.40, paring slim gains seen earlier in the morning. China stocks also reversed losses from earlier in the session to end higher, as investors hunted for bargains after a recent correction in shares of real estate and consumer firms. The Shanghai Composite index was up 1.2 percent at 3,160.53. Page 1 of 8
4. 30-Mar-18 Wall Street Buoyed by Tech Rebound U .S. stocks closed sharply higher Thursday, with tech shares leading the way, as equity markets ended a tumultuous quarter on a high note. Shares of technology companies in the S&P 500 rose 2.2 percent to lead the market higher, the sector’s first gain in three trading sessions, as investors temporarily shook off concerns of how lawmakers may try to impose new regulations to better protect the mountain of user data held by social media firms. Beyond tech, markets were also supported by a 2.2 percent rise in energy stocks. Materials, industrials, and financials also saw gains of at least 1 percent. Thursday also marked the last trading day for March and the first quarter of 2018. U.S. markets will be closed on Friday due to the Good Friday holiday. The Dow and S&P 500 fell 2.3 percent and 1.2 percent, respectively, for the quarter. They also snapped nine-quarter winning streaks. The Nasdaq Composite, meanwhile, rose 2.3 percent, its weakest gain since the last quarter of 2016. Shares of Facebook rose 4.4 percent, while Apple, Netflix and Alphabet also closed higher. Microsoft rose 2.1 percent after the company announced a major reorganization. The Dow Jones Industrial Average gained 254.69 points, or 1.07 percent, to 24,103.11, the S&P 500 rose 35.87 points, or 1.38 percent, to 2,640.87 and the Nasdaq Composite added 114.22 points, or 1.64 percent, to 7,063.44. Page 2 of 8
5. 30-Mar-18 News In Brief Corporate OSK Holdings Bhd (OSKH) has submitted an application to the Hong Kong Stock Exchange to list its cable business unit OCC Cables Ltd on the main board. The proposed listing, if it materialises, would constitute a deemed disposal by OSKH, arising from the dilution of no more than 30% of its equity interest in OCC Cables. Upon completion, OSKH would hold not more than 75% of the enlarged issued share capital of OCC Cables. (The Edge Markets / Bursa Malaysia) Sapura Exploration and Production Sdn Bhd (Sapura E&P), a wholly-owned subsidiary of Sapura Energy Bhd, and its joint venture partners, DEA Deutsche Erdoel Mexico and Premier Oil, have secured Block 30 in Sureste Basin in the Gulf of Mexico. Block 30, which lays in shallow waters of about 70 metres, is located directly to the southwest of Premier Oil's world-class Zama discovery and to the north of the Amoca oil field, was the most contested block in the Mexico Bid Round 3.1. (Bernama / Bursa Malaysia) Berjaya Assets Bhd (BAssets) has proposed a bonus issue of 1.3bn warrants on the basis of one warrant for every two shares held. The warrants, which will be issued at no cost to the entitled shareholders, have an exercise price of 35 sen apiece. (The Edge Markets / Bursa Malaysia) Excel Force MSC Bhd has proposed to dispose of its office premises in Plaza33 to the owner of the building for RM15.7mn, which will help it repay outstanding banking facilities of RM4.0mn. The group has entered into a conditional sale and purchase agreement with Plaza 33 Sdn Bhd today for the 18,988 square foot property. (The Edge Markets / Bursa Malaysia) Prestariang Bhd has been awarded an RM38.2mn contract by the Inland Revenue Board to provide Microsoft software licences, products and services under an extended master licensing agreement (MLA). The MLA, which was awarded via Prestariang’s wholly-owned subsidiary Prestarian Systems Sdn Bhd, will last for three years. (The Edge Markets / Bursa Malaysia) Sapura Energy Bhd has confirmed that a consortium in which it holds a 30% stake via wholly-owned Sapura Exploration and Production Sdn Bhd's (Sapura E&P) has outbid six other bidders for an offshore oil block in Mexico. The consortium, which includes DEA Deutsche Erdoel Mexico (40%) and Premier Oil Plc (30%) has been awarded Block 30 in Sureste Basin, a proven and prolific hydrocarbon province in the Gulf of Mexico. (The Edge Markets / Bursa Malaysia) Farlim Group (Malaysia) Bhd has proposed an issuance of one bonus share for every five existing shares, or a total of 28.1mn bonus shares in order to reward its existing shareholders for their support of the company. (The Edge Markets / Bursa Malaysia) Bumi Armada Bhd has clarified that it does not have any confirmed plan at this stage on the setting-up of a special-purpose vehicle (SPV) and injecting some of its floating production storage and offloading assets into it as part of its plan to ease its debt burden. In a filing with Bursa Malaysia, the company had referred to its announcement on March 27 in relation to its clarification on the article titled 'Bumi Armada to monetise assets, pare down debt' which had appeared in The Edge Malaysia on March 26. Bumi Armada said it was continuously assessing options to further strengthen its balance sheet and to fund new projects. (Bernama / Bursa Malaysia) Page 3 of 8
6. 30-Mar-18 Bank Islam Malaysia Bhd targets to issue 50 ,000 new Visa Debit Card-i (Islamic) by yearend under its latest co-branding effort with the Badminton Association of Malaysia (BAM). Chief Executive Officer, Khairul Kamarudin, said the bank currently has 3.2mn co-brand debit card holders nationwide. The partnership with BAM marks the bank's 16th co-branding effort. (Bernama / Bursa Malaysia) Eco World Development Group Bhd’s net profit for its first quarter ended Jan 31, 2018 (1QFY18) shrank 79% YoY to RM24.1mn, largely because the previous year had benefited from a RM94.8mn disposal gain. Excluding the impact of the disposal gain and lower interest expense in 1QFY17, the group recorded a 29.6% YoY rise in quarterly core earnings before interest and tax to RM62.6mn due to lower selling, marketing and administrative expenses, as well as higher profits from its Malaysian joint ventures. The group’s quarterly revenue, however, slipped 5% YoY to RM563.6mn due to progressively completed properties in several projects having been handed over, which reduced contributions from these projects. (The Edge Markets / Bursa Malaysia) Meanwhile, EcoWorld’s 27%-owned Eco World International Bhd (EWI) incurred a wider net loss of RM16.2mn for the first financial quarter ended Jan 31, 2018 (1QFY18) compared with RM6.1mn a year ago, due to lower unrealised foreign exchange gains compared with the previous corresponding quarter. Quarterly revenue shrank 94.5% YoY to RM18,000, as revenue for its property developments will only be recognised upon completion and delivery in the third to fourth quarter of this year. (The Edge Markets / Bursa Malaysia) In DRB-Hicom Bhd and its subsidiary Pos Malaysia Bhd, non-executive chairman Tan Sri Mohd Khamil Jamil is stepping down from his post with effect from April 1. Both companies announced that Mohd Kamil, 62, is resigning to pursue personal interests. (The Edge Markets / Bursa Malaysia) Yinson Holdings Bhd’s net profit grew 11.6% YoY to RM57.1mn in the fourth financial quarter ended Jan 31, 2018 (4QFY18), on higher contribution from its offshore & marine segment. Quarterly revenue stood at RM257.4mn, up 38.8% YoY. (The Edge Markets / Bursa Malaysia) Property developer Crescendo Corp Bhd’s net profit fell 79.3% YoY to RM2.4mn for the fourth quarter ended Jan 31, 2018 (4QFY18), no thanks to softer property sales. Quarterly revenue slipped 15.6% YoY to RM71.3mn. Despite the lower earnings, the board proposed a final single tier dividend of four sen, bringing the total payout to six sen for the financial year ended Jan 31, 2018 (FY18). (The Edge Markets / Bursa Malaysia) Steelmaker Hiap Teck Venture Bhd's second quarter net profit multiplied by almost eight times, thanks to lower finance costs and higher contribution from a joint venture (JV), with the latter boosted by a substantial unrealised foreign exchange gain due to a stronger ringgit. Quarterly earnings for the three months ended Jan 31, 2018 (2QFY18) jumped to RM30.6mn from RM3.9mn a year ago due to better selling prices in both its trading and manufacturing divisions, which have offset a lower year-on-year sales volume. (The Edge Markets / Bursa Malaysia) Page 4 of 8
7. 30-Mar-18 N e w s I n B r i e f Economy Asia Japan ’s Retail Sales Rebound to Modest Gain in February Japan’s retail sales rebounded in February following a sharp decline a month earlier, with the increase was driven mostly by higher prices, particularly for energy and vegetables. Retail sales rose 0.4% in February (forecast +0.6%) from January, when they declined a revised 1.6%. Sales increased 1.6% from a year ago (forecast +1.7%). Sales at department stores and supermarkets advanced 0.6% from a year earlier (forecast +0.9%). A sustained, robust rise in consumer spending is needed for Japan’s export-driven economic recovery to become self-sustaining. (Bloomberg) China's Leaders Approve Rules to Rein in US$15 Trillion Asset Management Sector Chinese President Xi Jinping and other top officials have approved new regulations for the country's US$15 trillion asset management sector. They plan to establish a financial court in Shanghai and deepen reform. In November, China's central bank issued draft rules on the country's asset management sector to close loopholes that have allowed regulatory arbitrage and increased leverage. Their approval comes amid a widening crackdown on risk in China's financial system as authorities seek to rein in a sector that has rapidly grown in complexity, driven by shadow banking products and off-balance-sheet lending. Sources previously told Reuters that Chinese banks have raised objections to the rules, saying they may cause a rush of redemptions, among other risks. (The Star) China Does Not Want a Trade War with US, Says China Commerce Ministry China does not want a trade war with the United States, but it won't accept any negotiations if they are hijacked unilaterally, China's commerce ministry said. China opposes U.S. intimidation on trade, ministry spokesman Gao Feng told a regular briefing in Beijing, adding that China will conduct trade-related investigations fairly and in accordance with local and WTO rules. Gao said China did not rule out any options in relation to U.S. trade issues and that the solution on trade was not to close the door but open it further. (The Star) Australia Private Sector Credit Rises More than Expected Australia's private sector credit increased at a faster-than-expected pace in February, data from the Reserve Bank of Australia showed. Private sector credit climbed a seasonally adjusted 0.4% month-over-month in February, faster than the 0.2% rise in January. Economists had expected a 0.3% rise for the month. On an annual basis, credit advanced 4.9% in February. Individually, housing credit added 0.5% over the month and 6.2% annually in February. At the same time, personal credit dropped 0.2% on monthly basis and slid 1.1% from last year. (RTT) Singapore Producer Prices Continue to Fall Singapore producer prices continued to fall in February, figures from the Department of Statistics showed. The manufactured products prices dropped 0.8% year-on-year in February but slower than the 1.9% decrease in January. The oil index climbed 6.5%, while the non-oil index declined 2.2% in February. Month-on-month, the manufactured products price index rose 0.6% in contrast to the 0.6% decrease in January. Another report from the statistical office showed that import prices remained unchanged on a yearly basis in February, following the 0.2% decrease in January. The oil index climbed 5.8%, while the non-oil index slid 1.7%. (RTT) Page 5 of 8
8. 30-Mar-18 United States U .S. Incomes Rose More Than Consumer Spending in February Americans’ incomes increased more than their outlays for the second straight month in February, a sign that higher incomes aren’t yet showing up in consumer spending. Personalconsumption expenditures, a measure of household spending on everything from dishwashers to books, increased a seasonally adjusted 0.2% in February from the prior month, the Commerce Department said Thursday. Personal income, reflecting Americans’ pretax earnings from salaries and investments, rose 0.4% in February. Both figures were in line with the expectations of economists surveyed by The Wall Street Journal. The 0.2% increase in spending for two straight months reflects some pullback from late last year, when spending rose 0.5% in December and 0.7% in November. Consumer spending accounts for more than two-thirds of U.S. economic output. Disposable personal income, or after-tax income, rose 0.4% on the month in February. That was a moderation from the revised 1% month-over-month gain in January, which reflected the impact of tax law changes that reduced tax withholding. Year-over-year inflation rose in February at a rate last exceeded in February 2017. The price index for personal-consumption expenditures, the Federal Reserve’s preferred inflation measure, was up 1.8% from a year earlier and rose 0.2% from January. Inflation as measured by the index was last above the Fed’s 2% annual target a year ago, when it reached 2.2% in February 2017. Excluding volatile food and energy costs, prices rose 0.2% in February from January, in line with economists’ expectations for a 0.2% increase in core prices. Core inflation was up 1.6% in February from a year earlier. (WSJ) U.S. Jobless Claims Fell Last Week to Lowest Level Since 1973 The number of Americans claiming new unemployment benefits fell last week to the lowest level since 1973, signaling continued health in the labour market. Initial jobless claims, a proxy for layoffs across the U.S., fell by 12,000 to a seasonally adjusted 215,000 in the week ended March 24, the Labor Department said Thursday. Economists surveyed by The Wall Street Journal expected 230,000 new claims last week. The four-week moving average of claims, considered a more-stable estimate because it reduces weekly volatility in the data, fell by 500 to 224,500. The low level of claims is among multiple signs of health in the U.S. labour market. The unemployment rate has held at 4.1% since October. Nonfarm employers added a robust 313,000 jobs in February, and wages are rising modestly. (WSJ) Europe and Uni ted Kingdom UK Current Account Deficit Narrows, Helped by Global Recovery Britain’s current account deficit fell sharply last year, potentially easing concerns about its reliance on foreign investors to fund itself as Brexit nears. The Office for National Statistics also said Britain’s economy grew at its slowest pace in five years in 2017, leaving it the weakest among Group of Seven countries as the decision to leave the European Union pushed up inflation and weighed on consumer spending. However, there were some more promising signs for 2018 as the dominant services sector picked up a bit in January and economists said they expected that an inflation hit to consumers would ease this year. The current account deficit stood at 18.4 billion pounds ($25.9 billion) in the fourth quarter, below all forecasts in a poll of economists, and the shortfall in the third quarter was revised down sharply. That left the 2017 deficit at 4.1% of GDP, the smallest since 2011 and much lower than a record 5.8% in 2016 as the global economic recovery, and the weak value of the pound, boosted earnings on British investment abroad. The ONS confirmed gross domestic product grew 0.4% on the quarter - slowing from 0.5% in the third quarter - and 1.4% compared with the last three months of 2016. For 2017, the ONS edged up its economic growth estimate to 1.8% but that was still the slowest since 2012. The ONS said disposable household incomes, adjusted for inflation, only inched up 0.1% in the fourth quarter and household spending in 2017 grew at the weakest pace since 2011. (Reuters) Page 6 of 8
9. 30-Mar-18 U .K. House Prices Fall With London Again the Weakest Region U.K. house prices fell for a second month in March, according to Nationwide Building Society, which blamed the weakness on a gloomy consumer mood and a squeeze on incomes. Values fell 0.2% after a 0.4% drop the previous month. The annual pace of gains slowed to 2.1% from 2.2%, well below the rate of recent years, which left the average price at 211,625 pounds ($298,200). Nationwide said that London remained the weakest market, with prices down 1% in March from a year earlier. That tallies with others reports that show the city is taking the biggest hit after years of outperformance. Prices there are falling at the fastest pace since the depths of the recession almost a decade ago. (Bloomberg) Germany's Jobless Rate Remains Stable in February Germany's unemployment rate remained unchanged in February, the labor force survey from Destatis revealed. The jobless rate held steady at adjusted 3.5% in February. The number of unemployed totaled 1.51 million, which was down by around 11,000 from the previous month. On an unadjusted basis, the unemployment rate climbed to 3.8% from 3.6% a month ago. At the same time, employment increased by adjusted 44,000, or 0.1% in February. (RTT) Page 7 of 8
10. 30-Mar-18 Share Buy-Back 29-March 2018 Company AMPROP CHINWEL DUFU E &O ENGTEX FIAMMA FITTERS JAYCORP KFIMA KOMARK KSL MALAKOF MMSV NTPM NYLEX PECCA PRESTAR REXIT SNTORIA SUNWAY SYF SYSCORP TEXCYCL TOMYPAK UNIMECH YILAI YINSON Bought Back 50,000 22,000 60,000 270,000 68,500 100,000 1,170,000 151,500 20,000 22,000 88,100 400,000 134,000 10,000 60,000 80,000 50,000 40,600 135,000 138,000 131,100 229,000 10000 25000 10000 10300 245000 Price (RM) 0.69 1.63/1.62 1.07 1.44 0.99 0.50 0.395/0.39 0.91 1.49 0.18 0.945/0.935 0.89/0.88 1.40/1.36 0.54 0.78/0.76 1.26/1.25 0.87 0.67 0.635/0.615 1.58/1.56 0.30 0.25/0.245 0.69 0.828 0.99/0.98 0.72 3.74/3.73 Total Treasury Shares 0.70/0.69 16,869,700 1.64/1.61 4,724,500 1.07/1.04 11,259,400 1.44/1.40 27,338,747 1.02/0.99 3,904,600 0.50/0.47 23,990,000 0.395/0.39 41,610,000 0.935/0.90 719,400 1.50/1.49 286,300 0.18/0.175 6,027,600 0.95/0.93 17,395,400 0.895/0.875 55,088,000 1.40/1.35 2,683,500 0.545/0.535 100,000 0.78/0.76 6,626,024 1.31/1.25 3,531,300 0.88/0.86 7,417,100 0.695/0.67 11,184,200 0.64/0.605 6,114,100 1.59/1.56 40,211,262 0.305/0.30 3,268,900 0.25/0.24 2,838,100 0.69 1562550 0.835/0.825 177000 0.99/0.97 7522010 0.72 9892708 3.77/3.72 5847800 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 8 of 8
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) PER (X) Div Yield (%) FY18 FY19 FY18 FY19 FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 29-Mar-18 AUTOMOBILE BAUTO 2.27 2.33 2.6% Buy 2,631 0.49 12.1 19.0 18.8 11.9 4.8 5.1 2.47 -8.1 1.84 23.4 MBMR 2.41 2.68 11.2% Hold 942 0.69 24.7 26.9 9.8 9.0 2.5 2.9 2.60 -7.3 2.01 19.9 3.2 9.5 PECCA 1.28 1.62 26.6% Buy 236 0.47 9.7 10.9 13.2 11.7 3.9 3.9 1.70 -24.7 1.23 4.1 -17.4 SIME 2.62 2.55 -2.7% Sell 17,818 1.57 13.2 16.4 19.9 16.0 1.3 1.6 3.06 -14.4 2.03 29.3 18.6 UMW 6.02 5.52 -8.3% Sell 7,033 1.46 28.6 40.2 21.0 15.0 2.3 3.3 6.98 -13.8 4.70 28.1 15.8 BANKS & FINANCIAL SERVICES ABMB 4.27 4.60 7.7% Buy 6,610 1.14 32.6 35.8 13.1 11.9 3.7 3.7 4.49 -4.9 3.62 18.0 4.7 AFFIN 2.53 2.40 -5.1% Sell 4,916 0.93 22.2 23.9 11.4 10.6 3.2 3.2 2.98 -15.0 2.22 13.9 9.5 -12.0 AMBANK 3.88 4.70 21.1% Buy 11,695 1.40 38.1 44.4 10.2 8.7 4.6 4.6 5.70 -31.9 3.88 0.0 CIMB 7.16 8.60 20.1% Buy 66,055 1.62 58.2 59.9 12.3 12.0 4.1 4.2 7.39 -3.1 5.32 34.6 9.5 HLBANK 18.70 19.30 3.2% Hold 38,253 0.84 116.8 126.8 16.0 14.7 2.6 2.6 20.02 -6.6 13.50 38.5 10.0 MAYBANK 10.52 11.50 9.3% Buy 114,565 1.00 73.8 77.9 14.3 13.5 5.2 5.2 10.58 -0.6 8.89 18.3 7.3 PBBANK 24.00 27.30 13.8% Buy 92,676 0.72 153.3 166.5 15.7 14.4 2.4 2.5 24.12 -0.5 19.86 20.8 15.5 RHBBANK 5.17 6.10 18.0% Buy 20,732 1.48 54.3 59.0 9.5 8.8 2.9 2.9 5.61 -7.8 4.71 9.8 3.4 BURSA 10.96 11.80 7.7% Buy 5,891 0.88 43.9 45.0 25.0 24.4 3.3 3.3 11.48 -4.5 9.30 17.8 8.3 -21.8 Note: BURSA bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 BUILDING MATERIALS ANNJOO 3.02 4.34 43.7% Buy 1,571 1.27 43.5 46.3 6.9 6.5 7.2 8.2 3.98 -24.1 2.32 30.2 CHINHIN 1.12 1.39 24.1% Buy 623 0.99 11.4 11.1 9.8 10.1 5.7 5.0 1.49 -24.8 1.00 12.6 -7.4 CSCSTEL 1.39 1.70 22.3% Buy 513 0.72 17.4 17.9 8.0 7.8 6.7 6.9 2.05 -32.0 1.33 4.5 -9.7 ENGTEX 1.02 1.38 35.3% Buy 445 0.78 13.8 15.7 7.4 6.5 2.1 3.0 1.52 -32.9 0.99 3.0 -7.3 GADANG 0.92 1.69 83.7% Buy 609 1.08 14.2 18.1 6.5 5.1 3.3 3.3 1.37 -32.8 0.88 5.1 -17.1 GAMUDA 5.15 6.00 16.5% Buy 12,667 0.87 34.4 35.6 15.0 14.5 2.3 2.3 5.52 -6.7 4.58 12.4 3.8 IJM 2.69 2.96 10.0% Hold 9,759 1.21 13.7 18.6 19.6 14.4 3.5 3.5 3.60 -25.3 2.55 5.5 -11.8 CONSTRUCTION KAB 0.25 0.38 53.1% Buy 8 na 31.4 37.3 0.8 0.7 4.1 4.9 0.33 -25.8 0.24 2.1 -18.3 PESONA 0.36 0.45 25.0% Buy 250 1.18 4.8 4.6 7.5 7.8 4.2 4.2 0.74 -51.0 0.36 0.0 -20.0 SENDAI 0.91 0.79 -13.2% Sell 711 1.41 9.9 8.7 9.2 10.4 1.1 1.1 1.39 -34.5 0.68 33.8 5.2 SUNCON 2.05 2.65 29.3% Hold 2,649 0.65 14.7 16.4 13.9 12.5 3.9 4.4 2.64 -22.3 1.75 17.1 -18.3 WCT 1.33 1.50 12.8% Sell 1,871 0.94 11.3 10.8 11.8 12.3 2.3 2.3 2.48 -46.3 1.29 3.1 -17.9 LITRAK 5.60 6.26 11.8% Hold 2,956 0.33 45.6 47.1 12.3 11.9 4.5 4.5 6.15 -8.9 5.40 3.7 0.9 CARLSBG 18.86 18.09 -4.1% Buy 5,802 0.72 87.8 91.8 21.5 20.5 4.6 4.7 21.00 -10.2 14.36 31.3 23.3 HEIM 21.00 21.64 3.0% Hold 6,344 0.40 93.0 101.6 22.6 20.7 3.6 3.8 23.04 -8.9 16.98 23.7 11.1 AEON 1.79 1.97 10.1% Buy 2,513 0.17 7.5 8.9 23.8 20.1 2.5 2.8 2.52 -29.0 1.45 23.4 1.7 AMWAY 7.60 8.59 13.0% Buy 1,249 0.48 48.3 49.9 15.7 15.2 5.3 5.4 8.10 -6.2 6.97 9.0 4.0 F&N 33.26 33.74 1.4% Buy 12,191 0.27 122.7 145.8 27.1 22.8 2.4 2.9 34.50 -3.6 23.40 42.1 23.2 CONSUMER Brewery Retail HUPSENG 1.04 1.25 20.2% Buy 832 0.39 5.7 5.9 18.2 17.6 5.8 5.8 1.28 -18.8 1.03 1.0 -4.6 JOHOTIN 1.00 1.48 48.0% Buy 310 1.01 11.1 11.7 9.0 8.5 6.0 6.5 1.76 -43.2 1.00 0.0 -17.4 NESTLE 151.00 129.90 -14.0% Hold 35,410 0.55 322.2 360.2 46.9 41.9 2.0 2.2 163.00 -7.4 78.62 92.1 46.3 PADINI 4.35 4.67 7.4% Sell 2,862 0.76 28.0 30.4 15.5 14.3 2.9 3.0 5.50 -20.9 2.88 51.1 -17.6 -25.1 POHUAT 1.34 1.78 32.8% Buy 294 0.47 20.1 23.1 6.7 5.8 4.5 6.0 2.07 -35.2 1.26 6.3 QL 5.01 5.41 8.0% Hold 8,128 0.62 13.3 15.5 37.6 32.3 0.9 0.9 5.05 -0.8 3.49 43.8 15.2 SIGN 0.58 0.92 60.0% Buy 132 0.58 6.9 9.2 8.3 6.3 4.3 6.1 1.07 -46.3 0.57 0.9 -18.4 26.30 34.72 32.0% Hold 7,509 1.48 170.8 168.8 15.4 15.6 6.1 6.1 47.48 -44.6 26.20 0.4 -34.3 GENTING 8.70 11.58 33.1% Buy 33,334 1.42 55.1 61.8 15.8 14.1 1.8 1.8 9.92 -12.3 8.63 0.8 -4.7 GENM 4.85 6.68 37.7% Buy 27,444 1.41 27.6 32.0 17.6 15.2 2.5 2.7 6.28 -22.8 4.80 1.2 -12.5 2.16 3.22 49.1% Buy 2,910 0.59 19.9 26.0 10.9 8.3 7.4 8.3 2.94 -26.5 2.06 4.9 -3.6 CCMDBIO 2.79 3.40 21.9% Buy 778 0.88 16.2 17.7 17.2 15.8 1.6 1.8 3.05 -8.5 1.97 41.6 10.3 IHH 6.00 6.40 6.7% Sell 49,438 0.73 11.9 15.0 50.5 40.1 0.5 0.6 6.33 -5.2 5.42 10.7 2.4 KPJ 0.90 1.13 26.3% Buy 3,771 0.55 3.9 4.4 22.9 20.6 2.5 2.7 1.14 -21.5 0.87 2.9 -7.7 HARTA 5.87 3.90 -33.6% Sell 19,441 1.13 12.6 14.4 46.7 40.7 2.6 2.9 6.09 -3.6 2.43 141.6 9.9 KOSSAN 7.63 9.73 27.5% Buy 4,879 0.59 37.4 42.1 20.4 18.1 2.5 2.8 8.79 -13.2 5.62 35.8 -5.9 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves SUPERMX 2.56 2.70 5.5% Buy 1,678 0.55 20.0 22.6 12.8 11.3 2.0 2.4 2.92 -12.3 1.69 51.5 28.0 TOPGLOV 9.75 12.20 25.1% Buy 12,249 0.67 35.3 42.7 27.6 22.8 1.5 1.8 10.24 -4.8 4.56 113.8 22.0 KAREX 0.82 0.93 14.1% Sell 817 0.78 1.8 3.0 46.0 26.9 0.5 0.9 2.26 -63.9 0.76 7.2 -37.3 SCIENTX 8.35 10.01 19.9% Buy 4,083 0.86 67.5 79.4 12.4 10.5 2.5 3.1 9.85 -15.2 7.30 14.4 -3.6 SKPRES 1.58 2.20 39.2% Buy 1,975 0.86 10.4 14.8 15.2 10.7 3.3 4.7 2.35 -32.8 1.25 26.4 -30.7 ASTRO 2.04 2.90 42.2% Buy 10,636 0.81 12.4 13.8 16.4 14.7 6.1 6.1 2.94 -30.6 2.01 1.5 -23.0 MEDIA PRIMA 0.39 0.45 16.9% Sell 427 1.27 -3.8 -1.7 na na 0.0 0.0 1.24 -69.0 0.38 1.3 -49.3 STAR 1.15 1.20 4.3% Sell 849 1.04 6.2 5.9 18.5 19.4 7.8 7.8 2.22 -48.1 1.15 0.0 -30.3 INDUSTRIAL MEDIA
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) % upside Recom Market Cap. (RMm) BETA EPS (sen) FY18 PER (X) FY19 FY18 Div Yield (%) FY19 FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.41 0.69 70.4% Buy 712 1.63 4.0 4.3 10.2 9.4 2.5 2.5 0.69 -41.3 0.39 3.8 -16.5 LCTITAN 6.10 7.60 24.6% Buy 13,865 na 56.3 60.9 10.8 10.0 4.1 4.4 6.53 -6.6 4.14 47.3 29.8 MHB 0.75 0.81 8.0% Sell 1,200 1.49 0.5 1.7 156.1 45.0 0.0 0.0 1.16 -35.3 0.63 20.0 -9.1 MISC 7.05 7.00 -0.7% Sell 31,470 1.13 50.1 53.8 14.1 13.1 4.3 4.3 7.90 -10.8 6.73 4.8 -5.0 PANTECH 0.57 0.69 22.1% Buy 421 1.23 6.1 6.8 9.3 8.3 4.9 5.4 0.74 -23.6 0.54 4.6 -12.4 PCHEM 8.15 8.84 8.5% Hold 65,200 0.84 52.5 53.8 15.5 15.1 3.2 3.2 8.38 -2.7 6.80 19.9 5.8 SAPNRG 0.51 0.65 28.7% Buy 3,026 2.17 -5.0 -1.7 na na 0.0 0.0 2.10 -76.0 0.40 27.8 -28.9 SERBADK 3.39 4.15 22.4% Buy 4,978 na 27.7 31.5 12.3 10.7 2.7 2.9 3.68 -7.9 1.63 108.0 4.6 UMWOG 0.31 0.39 25.8% Buy 2,547 1.86 0.4 1.2 81.2 26.8 0.0 0.0 0.68 -54.3 0.27 14.8 1.6 UZMA 1.48 1.57 6.1% Hold 474 0.82 12.9 13.9 11.5 10.7 0.0 0.0 1.98 -25.3 1.26 17.5 15.6 FGV 1.66 2.09 25.9% Buy 6,056 1.59 3.5 4.4 48.1 38.1 3.0 3.0 2.18 -23.9 1.51 9.9 -1.8 IJMPLNT 2.21 2.23 0.9% Sell 1,946 0.21 6.7 10.8 32.8 20.4 3.6 4.1 3.23 -31.6 2.20 0.5 -19.3 IOICORP 4.78 5.43 13.6% Buy 29,188 0.91 21.5 22.3 22.2 21.5 6.1 3.6 4.81 -0.6 4.21 13.7 7.9 KFIMA 1.49 1.89 26.8% Buy 420 0.67 14.2 14.7 10.5 10.1 6.0 6.0 1.96 -24.0 1.45 2.8 -5.1 KLK 25.58 27.76 8.5% Hold 27,242 0.65 120.7 125.7 21.2 20.4 2.3 2.4 25.78 -0.8 23.66 8.1 2.3 SIMEPLT 5.50 6.27 14.0% 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 1.44 1.81 25.7% Buy 1,988 0.46 9.3 9.6 15.5 15.0 1.7 1.7 1.90 -24.2 1.44 0.0 -12.7 UMCCA 6.20 6.21 0.2% Sell 1,300 0.38 17.3 28.3 35.8 21.9 2.6 2.9 7.08 -12.4 5.97 3.8 -4.8 GLOMAC 0.47 0.40 -14.0% Sell 369 0.73 1.5 2.5 30.8 18.8 4.3 4.3 0.66 -29.4 0.46 2.2 -16.1 HUAYANG 0.52 0.58 12.6% Sell 181 0.82 0.7 3.4 77.7 15.1 1.0 1.0 1.14 -54.8 0.50 4.0 -15.6 IBRACO 0.73 0.80 10.3% Buy 360 na 7.2 10.7 10.0 6.8 4.1 5.5 0.98 -25.6 0.50 45.0 -11.0 IOIPG 1.61 2.00 24.2% Sell 8,865 0.83 16.3 15.7 9.8 10.3 3.7 3.7 2.22 -27.5 1.60 0.6 -13.0 MAHSING 1.01 1.59 57.4% Buy 2,452 0.92 11.8 11.3 8.5 9.0 6.4 6.4 1.64 -38.4 1.00 1.5 -30.3 SIMEPROP 1.42 1.51 6.3% Hold 9,657 na 7.5 7.5 18.9 19.0 2.8 2.1 1.78 -20.2 1.04 36.5 -20.2 SNTORIA 0.62 0.76 23.6% Buy 345 0.14 8.3 8.6 7.4 7.2 1.6 1.6 0.91 -32.4 0.56 9.8 -11.5 SPB 4.36 5.10 17.0% Hold 1,498 0.58 18.7 24.0 23.3 18.1 2.8 2.8 5.50 -20.7 4.35 0.2 -11.0 SPSETIA 2.99 3.73 24.7% Buy 11,228 0.89 19.8 19.4 15.1 15.4 4.0 4.0 4.38 -31.8 2.99 0.0 -25.3 SUNWAY 1.58 1.75 10.8% Hold 7,709 0.86 11.8 12.4 13.4 12.7 3.8 3.8 1.96 -19.3 1.36 16.4 -3.1 SUNREIT 1.61 1.87 16.1% Hold 4,742 0.81 10.0 10.7 16.1 15.1 6.2 6.6 1.90 -15.3 1.52 5.9 -15.3 CMMT 1.07 1.48 38.3% Buy 2,183 0.77 7.8 8.3 13.6 12.9 7.6 8.0 1.83 -41.5 0.98 9.2 -41.5 PLANTATIONS PROPERTY REIT POWER & UTILITIES MALAKOF 0.90 0.82 -8.4% Sell 4,426 0.99 6.7 7.2 13.5 12.3 7.8 7.8 1.30 -31.2 0.86 4.7 -8.7 PETDAG 24.70 24.08 -2.5% Sell 24,538 0.48 114.7 116.3 21.5 21.2 3.5 3.5 25.97 -4.9 20.81 18.7 2.7 PETGAS 17.82 19.46 9.2% Buy 35,261 0.85 99.3 100.0 18.0 17.8 3.9 3.9 19.94 -10.6 15.82 12.6 1.9 TENAGA 16.16 18.22 12.7% Buy 91,562 0.59 131.3 127.5 12.3 12.7 4.0 3.9 16.18 -0.1 13.62 18.6 5.9 YTLPOWR 1.01 1.16 14.9% Sell 8,009 0.92 8.5 8.7 11.9 11.5 5.0 5.0 1.50 -32.7 1.01 0.0 -21.7 TELECOMMUNICATIONS AXIATA 5.46 6.50 19.0% Buy 49,407 1.57 15.9 19.4 34.3 28.1 1.5 2.9 5.82 -6.2 4.54 20.3 -0.5 DIGI 4.63 5.15 11.2% Hold 35,998 1.00 19.7 20.4 23.5 22.7 4.3 4.4 5.19 -10.8 4.36 6.2 -9.2 MAXIS 5.68 6.05 6.5% Sell 44,364 1.10 25.2 25.0 22.5 22.7 3.5 3.5 6.60 -13.9 5.48 3.6 -5.5 TM 5.21 7.20 38.2% Buy 19,579 0.66 22.8 24.9 22.8 21.0 3.9 4.3 6.69 -22.1 5.21 0.0 -17.3 ELSOFT 2.45 3.30 34.7% Buy 674 0.87 13.1 15.0 18.7 16.4 3.8 4.3 2.95 -16.9 1.83 33.9 -9.3 IRIS 0.19 0.22 18.9% Buy 457 2.47 0.0 0.3 672.5 58.4 0.0 0.0 0.25 -24.5 0.14 37.0 0.0 INARI 2.80 3.65 30.4% Buy 5,808 0.65 13.7 15.3 20.5 18.4 3.5 3.9 3.82 -26.7 1.89 48.5 -17.6 TECHNOLOGY Semiconductor & Electronics Note: INARI proposed bonus issue shares on the basis of 1 for 2. For more detail please refer to 30.01.18 report. MPI 8.63 10.70 24.0% Buy 1,716 0.83 73.9 86.9 11.7 9.9 3.7 3.7 14.52 -40.6 8.42 2.5 -31.6 UNISEM 2.45 2.70 10.2% Sell 1,798 1.09 19.0 20.3 12.9 12.1 4.9 4.9 4.25 -42.4 2.34 4.7 -32.9 TRANSPORTATION Airlines AIRASIA 3.96 4.93 24.5% Hold 13,234 1.09 41.1 41.1 9.6 9.6 2.0 2.0 4.75 -16.6 2.89 37.0 18.2 AIRPORT 8.85 8.61 -2.7% Sell 14,684 1.11 18.1 19.0 49.0 46.5 1.5 1.1 9.45 -6.3 6.93 27.7 0.7 Freight & Tankers PTRANS 0.26 0.46 76.9% Buy 330 na 2.3 3.7 11.2 7.0 2.7 4.3 0.38 -31.9 0.21 24.3 -7.1 TNLOGIS 1.03 1.45 40.8% Buy 460 0.99 11.9 12.2 8.6 8.4 4.9 4.9 1.83 -43.8 1.00 3.5 -23.1 WPRTS 3.53 4.06 15.0% Buy 12,037 0.47 15.6 20.0 22.6 17.6 1.1 1.4 4.19 -15.8 3.12 13.1 -4.6 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) % upside Recom Market Cap. (S$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 27.50 30.50 10.9% Buy 70,506 1.12 212.3 246.0 13.0 11.2 2.4 2.5 29.7 -7.4 18.65 47.5 10.7 OCBC 12.82 14.30 11.5% Buy 53,637 1.20 109.5 123.2 11.7 10.4 6.7 7.7 13.6 -5.8 9.49 35.1 3.5 UOB 27.50 27.80 1.1% Hold 45,689 1.17 216.6 244.0 12.7 12.7 2.9 2.9 29.0 -5.1 21.38 28.6 4.0 PLANTATIONS WILMAR 3.18 3.31 4.1% Hold 20,347 0.82 27.4 29.3 11.6 10.9 3.1 3.5 3.9 -17.8 2.97 7.1 2.9 IFAR 0.33 0.36 10.8% Hold 466 1.05 3.8 4.1 8.6 7.9 1.6 1.7 0.5 -39.3 0.32 1.6 -16.7 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.
13. SECTOR UPDATE Friday , March 30, 2018 FBMKLCI: 1,856.35 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Plantation Sector Overweight (Upgraded) Contrarian Views Angeline Chin Tel: +603-2167 9611 angelinechin@ta.com.my www.taonline.com.my Wrestling Mania – U.S vs. China Last week, the Trump administration announced that the US planned to impose tariffs up to USD60bn in annual imports from China and it is also limiting China’s freedom to invest in the U.S. technology industry. The Chinese government retaliated hours later with potential reciprocal tariffs on 128 US products, which valued at USD3bn in 2017. These products including a 15% tariff on U.S steel pipes, fruit, wine and other products, and 25% tariffs on pork and aluminium. In addition, China has threatened to retaliate by hitting U.S. agricultural exports and believe to be studying the potential impact of restrictions on U.S. soybeans. China, The World’s Leading Soybean Importer China is the world’s leading soybean importer and accounts for nearly two-thirds of global soybean trade. The country depends heavily on soybean imports mainly due to limited domestic production (~15mn/year). According to China's General Administration of Customs, China has imported 96mn tonnes of soybean in 2017 (+14% YoY) and buying primarily from the U.S, Brazil and Argentina. China is a vital export market for U.S as half of its soybean exports go to China. If the retaliation on U.S. soybean imports materialised, China could shift some of its supply chains to South America as the country has been strengthening cooperation with Brazil and Argentina in recent years (refer to Figure 4). Note that Brazil took over from the U.S in 2012 as the top supplier to China, helped by competitive prices and the high protein content of its crops, which make them more attractive for animal feed producers. Will Palm Oil Benefit from US-China Trade Revenge? The majority of China domestic soybeans is sold for food processing (soy milk, soy sauce, tofu and etc.) and locally consumed. We understand that China crush around 95mn tonnes of soybean annually. Approximately 80% of its soybean imports are processed and crushed domestically into meal for feed industry while the remaining 20% into soybean oil. For palm oil, although palm kernel cake (PKC) has been accepted as a component in animal feed, we doubt that PKC will benefit from the retaliation of US soybean as its protein, amino acids and digestible are much lower than soybean meal. Moreover, its rather strong smell may lead to reductions in feed intake and growth performance of livestocks. It may use for cattle feed but not widely used in the pigs and poultry industry. Note that China's edible oil demand is not growing as fast as meal demand. China is buying more soybeans for livestock feedings and this will increase the overall supply of soybean oil and limit the demand for palm oil. Thus, we do not believe palm oil will benefit significantly from the trade revenge between China and U.S. China is Unlikely to Retaliate on U.S. Soybeans We believe the retaliation on U.S soybean might backfire if supplies from other countries fail to meet the shortfall. Note that the massive soybean harvesting in Brazil was nearly completed and industry experts expect Brazil’s total soybean production to exceed 120mn tonnes in 2017/18. If we assume Brazil’s soybean exports to China is higher at 60% or 72mn tonnes in 2018 (+5.9% YoY), it can only fulfil up to 75% of the China’s total import requirement. Historical data revealed that Brazil usually exports 52% - 55% of its total production in the past (refer to Figure 1). Page 1 of 6
14. 30-Mar-18 Moreover , USDA has cut Argentina’s soybean exports forecast to 6.8mn tonnes in 2018 (previously 8.5mn tonnes) due to its worst drought, which has whittled soybean crop. Thus, we believe that South American supplies alone are insufficient to meet China’s demand. More importantly, we do not think China would not risk its pricing power over soybean by cutting off any supplies from any soybean-exporting countries. Figure 1: Global Soybean: Supply and Demand (in mn tonnes) 2013/14 55.2 2014/15 62.4 2015/16 77.9 2016/17 78.3 2017/18 96.7 Production US Brazil Argentina China India Others Total 91.4 86.7 53.4 12.0 9.5 29.8 282.8 106.9 97.2 61.4 12.2 8.7 33.7 320.0 106.9 96.5 56.8 11.8 6.9 34.8 313.7 116.9 114.1 57.8 12.9 11.5 38.1 351.3 119.5 113.0 47.0 14.2 9.5 37.6 340.9 Total supply 337.9 382.4 391.6 429.6 437.5 Imports Exports 113.1 112.7 124.4 126.1 133.3 132.6 144.3 147.5 151.3 150.6 0.3 (1.8) 0.8 (3.2) 0.7 Crushing Other use Consumption 242.9 33.0 275.9 264.9 37.9 302.8 275.4 38.7 314.1 288.5 41.2 329.8 300.9 42.9 343.8 Ending stocks Stocks/usage 62.4 22.6% 77.9 25.7% 78.3 24.9% 96.7 29.3% 94.4 27.5% 5.3 4.8 5.3 4.6 13.1 13.2 13.2 9.1 9.8 24.8 (2.0) 2.4 3.9 3.7 0.5 12.0 9.7 4.8 5.0 23.5 (3.0) 1.8 4.3 4.2 (2.3) Beginning stocks Net import Growth: Production Total supply Crushing Consumption Ending stocks Source: USDA, TA Research CPO Price Target Revised Lower. We revise our CPO price target for CY18 and CY19 to RM2,500/tonne and RM2600/tonne, respectively from RM2,800/tonne previously. We believe there is now limited upside to CPO price attributed to i) ii) iii) iv) Subsiding weather risks (weak La-Nina is ending), Weaker-than-expected CPO demand, Stronger-than-expected CPO supply in 2H, and The narrower CPO price discount against soybean oil (~USD68/tonne compared to an average of USD110/tonne in 2017). With that, we downgrade our sector earnings by 9.8% and 6.7% for CY18 and CY19 respectively. Naturally, the biggest casualties are those companies with large upstream exposure, such as FGV, IJMP, TSH and United Malacca. Page 2 of 6
15. 30-Mar-18 Figure 2 : Revision in Earnings Forecasts Source: TA Research Revision in Stock Recommendation Despite the downward revision in CPO prices and earnings, we upgrade the plantation sector to Overweight after rolling forward our valuation base year to CY19. Pegging a sector PE of 26x ( which is in line with the sector's historical 5-year average rolling forward PE), we upgrade most of the plantation stocks under our coverage except IJMP and United Malacca, which remained as Sell. (Refer to Figure 3). For stock picks, we like Sime Darby Plantation (TP: RM6.27/share) for its attractive growth profile, sustainable dividend policy of 50% payout ratio, strong earnings growth prospect and attractive valuations. We are upgrading our sector from Neutral to OVERWEIGHT as we believe most of the negative news flows have been priced in already and demand outlook is better in 2019. Sector earnings is expected to improve in 2019 due to higher FFB production and palm oil prices. Risk to our sector recommendation include: i) Upgrade revisions in soybean production estimates, ii) Weaker-than-expected demand in China and India and iii) Unfavourable government policies, which will affect the demand of palm oil. Figure 3: Revision in Target Price and Stock Recommendation Source: TA Research Page 3 of 6
16. 30-Mar-18 Tips On Election Play Figure 4 below depicts price movement of plantation stocks pre- and post-election for the past 6 terms . Although there is no strong correlation, our observation revealed that trading on plantation stocks tend to be relatively quiet and stock prices tend to be weak preelection. However, the stock price would recover and increase further in most cases postelection. It is worth noting that after the 13th General Election, prices of plantation stocks surged despite low CPO prices (RM2,300/tonnes). Figure 4: Share Price Performance Source: Bloomberg, TA Research Page 4 of 6
17. 30-Mar-18 Figure 5 : China Soybean Imports Figure 6: China Soybean Imports (by %) Source: Bloomberg, TA Research Source: USDA, TA Research Figure 7: China Soybean Imports (mn tonnes) Figure 8: China Palm Oil Imports (mn tonnes) Source: China Industry Information, TA Research Source: Bloomberg, TA Research Figure 9: China Soybean Meal Consumption Use Figure 10: China Edible Oil Consumption Structure Source: China Industry Information, TA Research Source: Pansun, TA Research Page 5 of 6
18. 30-Mar-18 Figure 11 : Peers’ Comparison Table Price TP PER (x) CY18 CY19 P/BV (x) CY18 CY19 Dividend Yield (%) CY18 CY19 ROE (%) CY18 CY19 Company Malaysia (RM) SD Plantation IOI Corp KLK FGV IJMP TSH United Malacca KFIMA Call (RM) (RM) Buy Buy Hold Buy Sell Buy Sell Buy 5.50 4.78 25.58 1.66 2.21 1.44 6.20 1.49 6.27 5.43 27.76 2.09 2.23 1.81 6.21 1.89 27.8 24.5 23.3 82.1 28.4 16.1 30.3 10.8 25.7 22.9 21.6 48.7 23.8 15.4 24.0 9.7 2.7 2.9 2.2 1.1 1.1 1.2 0.7 0.4 2.6 2.8 2.1 1.1 1.1 1.1 0.7 0.4 2.7 4.5 2.1 3.0 4.0 1.6 2.8 6.0 2.9 3.5 2.3 3.0 4.1 1.6 3.0 6.0 9.9 12.7 9.7 1.3 3.9 8.1 2.5 4.9 10.2 12.6 10.0 2.3 4.6 8.0 3.1 5.4 Singapore (SGD) Wilmar IFAR Buy Buy 3.18 0.33 3.50 0.37 16.1 10.7 14.8 8.5 1.2 0.4 1.2 0.4 2.5 1.3 2.7 1.6 7.6 3.7 7.9 4.5 Source: Bloomberg, TA Research Sector Recommendation Guideline OVERWEIGHT: The industry, as per our coverage universe, is expected to outperform the FBMKLCI over the next 12 months. NEUTRAL: The industry, as per our coverage universe, is expected to perform in line with the FBMKLCI over the next 12 months. UNDERWEIGHT: The industry, as per our coverage universe, is expected to underperform the FBMKLCI over the next 12 months. Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Friday, March 30, 2018, the analyst, Angeline Chin Swee Tyng, 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 6 of 6
19. COMPANY UPDATE Friday , March 30, 2018 FBMKLCI: 1,859.35 Sector: Oil & Gas THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Sapura Energy Bhd TP: RM0.65 (+27.4%) Last Traded: RM0.51 Hola Mexico E&P Kylie Chan Sze Zan Buy Tel: +603-2167 9601 kyliechan@ta.com.my The News Sapura Energy Bhd (SAPE) and its joint venture (JV) partners, DEA Deutsche Erdoel Mexico and Premier Oil, have been awarded Block 30 in Sureste Basin in the Gulf of Mexico (GoM). Block 30 is located in shallow waters of about 70m, directly to the south west of Premier's Zama discovery, and to the north of the Amoca oil field. www.taonline.com.my Share Information Bloomberg Code SAPE MK Stock Code 5218 Listing Main Market Share Cap (mn) 5,992 Market Cap (RMmn) 3,056 Par Value (RM) 1.00 52-wk Hi/Lo (RM) 2.10/0.40 12-mth Avg Daily Vol ('000 shrs) The bidding agreement is based on an equity split of: 1) DEA (40% stake), 2) SAPE (30%) and 3) Premier Oil (30%). 42,657 Estimated Free Float (%) 56 Beta 2.75 Major Shareholders (%) According to SAPE, the consortium outbid six other bidders to secure Block 30, which is the most contested block within a proven and prolific hydrocarbon province. Sapura Holdings - 15.9 KWAP - 7.2 Forecast Revision (%) FY19 The consortium has identified material leads and prospects on Block 30 in the tertiary clastic plays, typical of the Sureste Basin, and in which Premier Oil made the world-class Zama discovery in July 2017. The consortium plans to acquire a 3D seismic in 2019, ahead of firming up drilling locations in 2020. The main prospect exhibits DHIs (direct hydrocarbon indicators) on the existing 3D seismic across the southern edge of Block 30. These anomalies are similar to those seen at the Zama and Amoca oil fields. Our Take This news comes hot on the heels of SAPE’s recent entry into the E&P market in New Zealand via Taranaki Basin (please refer to our report dated 27-Mar-18) Similarly, we are positive on this announcement for the same reasons, namely: 1) international diversification of E&P assets, 2) increase in O&G reserves if exploration campaigns yield results, 3) leverage on Premier Oil’s substantial track record and expertise, 4) opportunity to deploy subsea technical services and E&C fleet during the exploration and subsequent development phase respectively, 5) low exploration risk as DHIs on exhibits on the main prospect indicate a potential material oil play, 6) shallow water reserves typically have high commerciality and fast development turnaround time, and 7) immediate near term cash outlay for Block 30’s exploration program is minimal. Forecast Revision (%) Core Net Profit (RM mn) 0.0 FY20 0.0 (102.0) 121.4 Consensus (46.6) 154.5 TA/Consensus (%) 219.0 78.6 Previous Rating Buy (Under Review) Financial Indicators FY19 Net Debt/Equity (x) FY20 1.6 ROA (%) (0.3) ROE (%) (1.1) 1.6 0.4 1.3 NTA/Share (RM) 0.2 0.3 P/NTA (x) 2.1 2.0 Share Performance Price Change (%) SAPE FBMKLCI 1 mth (24.6) 0.0 3 mth (28.9) 3.3 6 mth (66.8) 5.7 12 mth (72.7) 6.1 (12-Mth) Share Price relative to the FBMKLCI To recap, Premier Oil is an established independent UK oil company with E&P assets across UK, Asia, Africa and Mexico. It is listed on the London Stock Exchange with current market capitalization of GBP533.3mn. SAPE has substantial E&C (Engineering & Construction) track record and experience in Mexico, particularly at the Sureste Basin, having operated in this market since late 2012. Additionally, SAPE also has an existing Source: Bloomberg Page 1 of 4
20. 30-Mar-18 working relationship with PEMEX , the Mexican state-owned company. Impact Maintain forecasts. Valuation Maintain Buy on SAPE with unchanged TP of RM0.65 based on 0.6x CY18 adjusted P/B. This is underpinned by: 1) SAPE is highly leveraged to the nascent recovery in oil price, 2) exposure to crown jewel E&P portfolio, with sizeable total net reserves and resources of 253mn boe, 3) potential listing of the group’s E&P assets unlocks value and may raise significant cash proceeds, and 4) earnings upside risk due to chunky depreciation savings from 4QFY18’s kitchen sinking exercise. [ TH E RE M A ININ G OF T H IS P A GE IS IN TE N TI O NA L L Y L E F T BL AN K] Page 2 of 4
21. 30-Mar-18 Table 1 : Earnings Summary (RMmn) Income Statememt Balance Sheet FYE 31 Jan (RMmn) 2017 2018 2019E 2020F 2021F FYE 31 Jan (RMmn) Revenue 7,651.3 5,895.0 6,059.2 7,894.8 8,927.1 EBITDA 2,688.4 1,502.8 1,202.7 1,392.4 1,436.3 Depreciation (1,792.1) (1,062.0) (679.5) (688.9) (700.5) (776.1) (837.3) (839.4) (830.9) (824.8) Other receivables & Tax 456.9 276.5 345.0 414.0 496.8 Net finance cost Jointly Controlled Ent Exceptionals (191.9) (2,203.7) 0.0 0.0 0.0 Pretax Profit 385.2 (2,323.6) 28.8 286.6 407.8 Taxation (179.1) (129.9) (165.2) (189.0) (0.9) (0.0) MI 2.2 (181.2) 1.3 0.3 Fixed assets & O&G Expend 2017 2018 2019E 2020F 2021F 15,140.0 11,454.7 11,675.2 11,836.3 12,035.8 Goodwill 8,443.5 7,899.1 7,899.1 7,899.1 7,899.1 Invt in Associates & JCEs 1,858.6 1,557.5 1,902.5 2,316.5 2,813.3 260.7 134.2 134.2 134.2 134.2 4,438.8 4,220.4 4,220.4 4,220.4 4,220.4 30,141.7 25,266.0 25,831.4 26,406.6 27,102.9 Other assets Non-Current Assets 458.5 376.6 498.0 648.9 733.7 Trade and other rcvb Inventories 3,269.1 2,530.1 2,241.1 2,920.0 3,301.8 3,519.5 1,716.2 1,474.2 946.2 339.4 95.1 103.9 103.9 103.9 103.9 7,342.2 4,726.8 4,317.2 4,619.0 4,478.9 37,483.9 29,992.8 30,148.6 31,025.6 31,581.7 15,483.0 14,694.6 14,694.6 14,594.6 14,494.6 1,304.5 1,023.7 1,023.7 1,023.7 1,023.7 17,030.6 15,914.4 15,914.4 15,814.4 15,714.4 Core Net Profit 400.3 (299.8) (102.0) 121.4 219.1 Cash and Deposits Reported Net Profit 208.3 (2,503.5) (102.0) 121.4 219.1 Other assets Current Assets Per Share Data Core EPS (sen) 6.7 (5.0) (1.7) 2.0 3.7 Reported EPS (sen) 6.7 (5.0) (1.7) 2.0 3.7 DPS (sen) 1.0 0.0 0.0 0.0 0.0 Borrowings Book Value (RM) 2.2 1.6 1.6 1.6 1.6 Derivatives & Tax Net Tang Asset (RM) 0.8 0.3 0.2 0.3 0.3 Non-current liabilities FCF (RM) 0.5 0.0 0.1 0.1 0.1 Ratios FYE 31 Jan (RMmn) 2017 2018 2019E 2020F Total Assets 2021F Valuations Borrowings 3,511.1 1,722.2 1,622.2 1,522.2 1,422.2 Trade & other Payables 3,800.3 2,797.1 3,154.1 4,109.6 4,647.0 Other Liabilities Current Liabilities 61.7 108.7 108.7 108.7 108.7 7,373.0 4,628.0 4,885.0 5,740.5 6,177.8 24,403.6 20,542.4 20,799.4 21,554.9 21,892.2 Core PER (x) 7.6 (10.1) (29.9) 25.1 13.9 Reported PER (x) 7.6 nm nm 25.1 13.9 Dividend yield (%) 2.0 0.0 0.0 0.0 0.0 EV/EBITDA (x) 6.8 11.8 14.9 13.1 13.0 Share capital 5,992.2 8,066.4 8,066.4 8,066.4 8,066.4 P/BV (x) 0.2 0.3 0.3 0.3 0.3 Retained earnings & others 7,084.0 1,383.6 1,281.5 1,403.0 1,622.1 Minority interests Total Liabilities P/NTA (x) 0.7 2.0 2.1 2.0 1.7 FCF Yield (%) 89.7 0.2 27.2 21.9 19.9 EBITDA margin (%) 35.1 25.5 19.8 17.6 16.1 EBIT margin (%) 11.7 7.5 8.6 8.9 8.2 Cash Flow Statement PBT margin (%) 7.5 (2.0) 0.5 3.6 4.6 FYE 31 Jan (RMmn) Net margin (%) 5.2 (5.1) (1.7) 1.5 2.5 PBT Core ROE (%) 3.1 (3.2) (1.1) 1.3 2.3 Depreciation 1,792.1 Core ROA (%) 1.1 (1.0) (0.3) 0.4 0.7 Net Interest Working Cap Changes Profitability ratios Liquidity ratios 4.2 0.4 1.3 1.3 1.0 Equity 13,080.3 9,450.4 9,349.2 9,470.7 9,689.5 Total Equity + Liabilities 37,483.9 29,992.8 30,148.6 31,025.6 31,581.7 Income taxes Paid Current ratio (x) 1.0 1.0 0.9 0.8 0.7 Interest Received Quick ratio (x) 0.9 0.9 0.8 0.7 0.6 Share of results of JCEs Others Leverage ratios CF from Operations Total Debt/ Assets (x) 0.5 0.5 0.5 0.5 0.5 Total Debt/Equity (x) 1.4 1.7 1.7 1.7 1.6 Capex Net (cash)debt/ Equity (x) 1.2 1.6 1.6 1.6 1.6 Acquisitions Interest coverage (x) 1.1 0.5 0.6 0.8 0.9 2017 2019E 2020F (2,323.6) 28.8 286.6 407.8 1,062.0 679.5 688.9 700.5 776.1 837.3 839.4 830.9 824.8 420.4 (182.2) 524.6 125.7 70.7 (179.1) (181.2) (129.9) (165.2) (189.0) 385.2 2018 23.8 21.4 14.0 12.0 (456.9) (276.5) (345.0) (414.0) 2021F 7.7 (496.8) 0.0 0.0 0.0 0.0 0.0 3,005.2 911.2 1,611.4 1,365.0 1,325.7 (180.5) (1,055.6) (900.0) (850.0) (900.0) 0.0 0.0 0.0 0.0 Others 402.7 421.1 0.0 0.0 CF from Investing 22.8 (894.3) 317.9 (2,231.9) (100.0) (200.0) (200.0) (858.7) (853.4) (843.0) (832.5) (900.0) (850.0) 0.0 0.0 (900.0) Growth ratios Revenue (%) (24.9) (23.0) 2.8 30.3 13.1 EBITDA (%) (12.4) (44.1) (20.0) 15.8 3.1 Net Change in Debt Interest Expense PBT (%) (154.1) (703.1) (101.2) 895.7 42.3 Others Core net profit (%) (60.3) (174.9) (66.0) (219.0) 80.4 CF from Financing Core EPS (%) (60.3) (175.1) (66.1) (219.0) 80.4 Net Cash Flow Key Assumptions E&C Orderbook Replennishment Beginning Cash 5,000 5,500 5,500 5,500 Effect of exchg rates Ending Cash (799.9) (1,047.1) 1,362.0 (1,588.8) (1,728.5) 1,439.2 (1,711.6) 1,947.5 3,519.5 0.0 0.0 0.0 1,474.2 946.2 339.4 132.8 3,519.5 (91.7) 1,716.2 0.0 (953.4) 0.0 0.0 (1,043.0) (1,032.5) (242.0) (527.9) (606.8) 1,716.2 1,474.2 946.2 Page 3 of 4
22. 30-Mar-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 Friday, March 30, 2018, the analyst, Kylie Chan Sze Zan , who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
23. Friday , 30 March, 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 2. D ai l y Mon e y F low of T e ch n i c a l St o ck Pi ck s 3. D ai l y Mon e y F low of FB MK L CI 4. D ai l y S t o c k S c r e e n 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
24. Technical View Friday , March 30, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,856.35 (-1.52, -0.08%) Chartist: Stephen Soo Close Name 29/Mar FBMKLCI 1856.35 Tel: +603-2167 9607 Change High Low (1.52) 1,860.56 1,854.50 Bollinger Bands RSI stsoo@ta.com.my Moving Averages www.taonline.com.my DMI MACD DMI Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff 1,834.71 1,854.79 1,874.87 52.32 1,858.41 1,854.83 1,848.36 27.81 28.44 11.83 (0.62) 5.05 5.22 (0.16) SELL MACD Recent Signal SELL DMI MACD Signal Change SELL SELL - AFFIN 2.40 0.00 2.40 2.40 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 0.02 BUY BUY - ABMB 4.27 0.00 4.28 4.24 4.01 4.21 4.41 54.56 4.25 4.18 4.20 20.30 19.53 18.48 0.77 0.02 0.03 (0.00) BUY SELL BUY - AMBANK 3.88 -0.06 3.97 3.88 3.93 4.08 4.22 33.42 4.10 4.22 4.40 17.78 33.94 21.41 (16.16) -0.09 -0.09 0.00 SELL BUY - - AXIATA 5.46 -0.02 5.48 5.35 5.27 5.41 5.56 52.01 5.42 5.47 5.51 17.50 26.78 25.73 (9.28) -0.01 -0.02 0.01 SELL BUY - - CIMB 7.16 -0.01 7.20 7.15 7.13 7.22 7.32 49.50 7.23 7.19 7.10 19.67 31.87 21.09 (12.20) 0.04 0.06 (0.02) SELL SELL - - DIGI 4.63 -0.02 4.67 4.60 4.56 4.70 4.83 43.10 4.64 4.76 4.80 16.94 23.74 23.19 (6.80) -0.05 -0.05 (0.00) SELL SELL - - GAMUDA 5.15 0.05 5.20 5.08 4.92 5.04 5.16 55.75 5.08 5.04 5.05 21.73 13.36 19.21 8.37 0.03 0.02 0.01 BUY BUY - - GENTING 8.70 -0.15 8.89 8.69 8.73 8.92 9.11 44.64 8.94 8.94 9.09 10.07 16.69 23.21 (6.62) -0.03 -0.03 0.00 SELL BUY - - GENM 4.85 -0.02 4.96 4.83 4.93 5.15 5.38 33.75 5.16 5.19 5.26 15.39 31.78 14.16 (16.39) -0.06 -0.03 (0.02) SELL SELL - - IHH 6.00 -0.05 6.05 5.98 5.97 6.06 6.15 50.53 6.06 6.06 6.03 18.13 14.36 17.69 3.78 0.01 0.02 (0.01) BUY SELL - - IOICORP 4.78 -0.02 4.81 4.75 4.58 4.70 4.83 65.17 4.71 4.68 4.63 20.52 22.89 15.71 (2.37) 0.04 0.03 0.01 SELL BUY SELL - MALAKOFF 0.90 0.02 0.90 0.88 0.85 0.88 0.92 45.20 0.88 0.90 0.91 16.75 13.66 19.46 3.09 -0.08 -0.08 (0.00) BUY SELL - - MAXIS 5.68 -0.09 5.77 5.67 5.67 5.83 6.00 43.18 5.81 5.90 5.95 11.01 20.55 25.56 (9.54) -0.04 -0.04 0.00 SELL BUY - - 10.52 0.02 10.52 10.48 10.29 10.44 10.58 62.38 10.42 10.37 10.22 19.16 14.85 22.78 4.30 0.08 0.08 (0.00) BUY SELL - - MBSB 1.08 -0.01 1.10 1.08 1.09 1.16 1.22 32.23 1.14 1.18 1.18 12.38 30.49 19.20 (18.11) -0.02 -0.01 (0.01) SELL SELL - - RHBBANK 5.17 -0.08 5.27 5.17 5.20 5.33 5.45 45.86 5.31 5.33 5.31 14.53 23.00 13.62 (8.47) -0.01 0.01 (0.02) SELL SELL - - SIME 2.62 0.00 2.65 2.56 2.53 2.63 2.72 47.22 2.61 2.66 2.73 17.18 23.02 23.03 (5.84) -0.03 -0.03 (0.00) SELL SELL - - 16.16 0.36 16.18 15.80 15.55 15.69 15.83 60.19 15.74 15.69 15.73 22.55 11.43 18.07 11.12 0.03 0.01 0.01 BUY BUY - - TM 5.21 -0.12 5.33 5.21 5.29 5.58 5.88 27.23 5.48 5.73 5.85 16.25 33.02 22.10 (16.77) -0.14 -0.13 (0.02) SELL SELL - - WPRTS 3.53 -0.02 3.58 3.52 3.47 3.56 3.66 48.39 3.56 3.60 3.56 11.43 18.10 18.36 (6.67) -0.01 -0.01 (0.00) SELL SELL - - AIRASIA 3.96 0.02 3.97 3.92 3.78 4.10 4.42 42.36 4.04 4.18 4.15 15.70 28.13 24.77 (12.43) -0.05 -0.03 (0.02) SELL SELL - - AIRASIA X 0.38 -0.01 0.39 0.38 0.37 0.40 0.43 42.88 0.40 0.41 0.40 14.67 24.91 18.53 (10.24) 0.00 0.00 (0.00) SELL SELL - - ARMADA 0.83 -0.02 0.85 0.83 0.82 0.84 0.86 51.79 0.84 0.85 0.84 19.32 17.77 14.26 1.56 0.00 0.00 0.00 BUY BUY - BUY DIALOG 2.96 0.12 3.01 2.85 2.55 2.75 2.94 58.67 2.83 2.73 2.69 24.25 13.99 19.35 10.26 0.06 0.05 0.01 BUY BUY - - DNEX 0.41 0.00 0.41 0.39 0.39 0.42 0.45 36.94 0.43 0.44 0.45 20.23 27.68 16.11 (7.45) -0.01 -0.01 (0.00) SELL SELL - SELL ECO WORLD 1.00 0.00 1.00 0.99 0.91 1.12 1.32 21.80 1.05 1.19 1.28 8.79 37.95 59.73 (29.16) -0.08 -0.08 (0.00) SELL SELL - - EKOVEST 1.01 0.04 1.04 0.94 0.94 0.97 1.00 47.67 0.97 0.99 1.00 20.41 17.19 9.93 3.22 -0.01 -0.01 0.00 BUY BUY - BUY FGV 1.66 -0.03 1.71 1.66 1.67 1.81 1.95 34.53 1.76 1.86 1.90 11.37 26.52 31.53 (15.15) -0.05 -0.04 (0.01) SELL SELL - - GADANG 0.92 0.00 0.92 0.91 0.87 0.96 1.05 30.22 0.92 1.00 1.04 12.19 35.78 48.40 (23.59) -0.04 -0.04 (0.00) SELL SELL - - HIAP TECK 0.42 0.02 0.43 0.41 0.41 0.45 0.49 27.24 0.44 0.47 0.47 13.21 33.72 28.78 (20.51) -0.01 -0.01 (0.00) SELL SELL - - HIBISCUS 0.82 0.01 0.83 0.81 0.80 0.88 0.95 36.19 0.85 0.91 0.93 17.97 23.78 14.53 (5.80) -0.03 -0.02 (0.00) SELL SELL - - KUB 0.44 0.00 0.45 0.44 0.42 0.46 0.50 42.09 0.45 0.47 0.47 25.15 25.81 13.66 (0.66) -0.01 0.00 (0.00) SELL SELL - - MALTON 0.81 -0.01 0.86 0.81 0.80 0.89 0.97 35.94 0.85 0.91 0.92 20.30 28.13 16.65 (7.83) -0.03 -0.02 (0.01) SELL SELL - - MUDAJAYA 0.72 0.01 0.72 0.71 0.67 0.77 0.87 23.36 0.73 0.81 0.84 14.45 41.31 32.10 (26.86) -0.04 -0.04 (0.00) SELL SELL - - MRCB 0.97 0.00 0.99 0.97 0.95 1.02 1.08 30.76 0.99 1.05 1.10 17.42 25.86 24.03 (8.44) -0.03 -0.03 0.00 SELL BUY - - SAPURA ENERGY 0.51 0.01 0.53 0.49 0.40 0.52 0.64 39.25 0.52 0.58 0.65 19.52 31.67 29.50 (12.15) -0.04 -0.05 0.01 SELL BUY - - SUNCON 2.05 0.03 2.08 1.95 1.99 2.15 2.31 28.68 2.09 2.24 2.35 14.75 23.23 30.42 (8.48) -0.09 -0.08 (0.00) SELL SELL - - UEMS 1.00 0.02 1.01 0.98 0.95 1.01 1.06 35.41 0.99 1.04 1.08 13.30 23.07 29.04 (9.78) -0.03 -0.03 0.00 SELL BUY - - UMWOG 0.31 0.01 0.32 0.30 0.30 0.31 0.32 43.43 0.31 0.31 0.32 21.87 17.63 14.88 4.25 0.00 0.00 0.00 BUY BUY - - WASEONG 1.49 0.00 1.50 1.48 1.45 1.56 1.68 45.61 1.56 1.56 1.50 16.44 29.38 19.66 (12.94) 0.01 0.02 (0.02) SELL SELL - - WCT 1.33 0.00 1.33 1.31 1.22 1.39 1.56 37.48 1.33 1.46 1.52 13.99 30.24 28.51 (16.25) -0.06 -0.06 0.00 SELL BUY - BUY MAYBANK TENAGA 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 4
25. 30-Mar-18 Technical Comments : Bargain Hiap Teck & Malton Further pullback in Hiap Teck shares will be attractive to bargain for oversold rebound, with key retracement supports from the 76.4%FR (38sen) and 61.8%FR (34sen), and major hurdles from the 123.6%FP (51sen), 138.2%FP (55sen) and 150%FP (58sen). Likewise, further weakness on Malton towards key chart support at 70sen and 3/1/17 low (65sen) should find bargain hunters cushioning downside, while main upside hurdles after at the 23.6%FR (96sen) and 38.2%FR (RM1.14). HIAP TECK RM0.42 (+0.015) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 0.48 0.45 0.41 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal SELL Signal Change Recent Signal SELL Signal Change MALTON RM0.81 (-0.01) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 0.97 0.88 0.79 10-day 30-day 50-day DMI Recent Signal Signal Change 0.44 0.47 0.47 SELL Recent Signal Signal Change RM RM RM DAILY MACD 0.84 0.90 0.92 SELL Page 2 of 4
26. 30-Mar-18 Daily Money Flow of Technical Stock Picks Malaysia Chartist : Stephen Soo No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 37 38 39 39 40 41 Tel: +603-2167 9607 Total Money Flow (RM'mn) stsoo@ta.com.my www.taonline.com.my CLOSING PRICE 22-Mar 23-Mar 26-Mar 27-Mar 28-Mar (A) Total 5D MF Prv. Chg FBMKLCI (29.8) 7.5 2.6 13.0 (28.5) (35.2) 10.5 (41.5) 1,877 1,865 1,860 1,862 1,858 (4.58) OUT AFFIN ABMB AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA DIALOG DNEX ECO WORLD EKOVEST FGV GADANG HIAP TECK HIBISCUS KUB MALTON MUDAJAYA MRCB SAPURA ENERGY SUNCON UEMS UMWOG WASEONG WCT 0.3 (0.0) 0.0 (0.6) 1.3 0.4 (0.2) 0.0 2.5 0.3 0.3 0.6 0.1 (7.6) (0.1) (3.5) (0.1) 1.1 0.3 0.1 (2.7) (0.1) (0.2) 0.7 (0.0) (0.0) (0.2) (0.0) 0.0 0.0 0.2 0.0 0.0 0.0 0.1 (2.6) 0.1 (0.0) 0.0 (0.0) 0.0 0.0 (0.3) 0.1 (0.4) (1.1) 0.2 (0.8) 0.1 3.5 1.4 (0.6) 0.3 (0.1) 4.5 (0.2) (0.2) (2.0) 1.1 0.5 (3.5) (0.8) 0.1 (0.1) 1.1 (0.1) 0.0 (0.7) (0.8) 0.1 (0.1) 0.3 0.0 (0.0) (0.0) (0.3) (1.2) 0.2 0.0 (0.0) (0.3) 0.2 (0.0) (0.1) (0.1) 0.1 4.1 0.4 (1.6) 0.5 (2.0) 0.8 0.1 (0.1) 0.2 (3.0) (0.5) (0.1) (1.1) (0.1) 1.7 0.0 0.5 (0.1) (0.0) (0.0) (0.1) (0.1) (0.4) (0.9) (0.0) 0.0 0.3 0.0 0.3 (0.0) 0.1 (1.8) 0.0 0.0 0.2 0.1 0.1 (0.0) (0.1) 0.2 1.5 (5.7) 0.4 3.7 (0.3) 1.2 1.6 0.1 (0.1) 0.0 1.4 (0.2) (0.1) (1.2) (0.6) 0.2 (2.0) (0.5) 0.0 0.1 (0.5) (0.2) (0.0) (0.6) (1.2) 0.1 (0.0) (0.5) 0.1 0.0 0.0 0.3 (0.9) 0.1 (0.0) (0.1) 0.0 0.0 (0.1) (0.0) 0.7 0.9 (3.4) 0.0 (0.1) (0.9) (3.6) (3.0) (1.6) 0.2 (0.9) (0.1) (0.1) (0.2) 0.4 (16.2) 2.8 0.1 (1.9) 0.2 (0.1) 0.0 (0.2) 0.1 (0.6) (1.6) (0.0) (0.1) (0.5) (0.0) (0.0) (0.0) 0.0 1.1 0.1 (0.0) (0.3) (0.1) 0.0 0.2 (0.5) 0.9 1.4 (4.8) 1.4 0.9 (0.7) 1.5 0.9 (1.7) 0.8 (0.7) (4.8) (1.2) (3.9) (4.0) (14.7) 5.5 (5.3) (5.4) 0.1 (0.2) 1.2 (0.7) 0.0 (2.5) (4.4) 0.1 (0.1) (0.2) 0.1 0.3 (0.0) 0.1 (5.3) 0.5 0.0 (0.3) (0.3) 0.4 0.0 (0.0) 0.3 1.4 (9.8) (0.1) 5.3 (0.8) 3.2 0.8 (0.0) (0.0) (0.1) 4.3 0.3 (0.0) (0.1) (0.4) (1.4) (2.0) (1.0) 0.1 0.2 (0.5) (0.1) 0.0 (0.3) (0.2) 0.1 (0.0) (0.8) 0.1 (0.3) 0.0 0.1 0.9 0.1 (0.1) (0.3) (0.1) (0.1) (0.0) 0.0 0.5 (0.6) 2.3 (0.4) (3.8) (0.5) (4.8) (4.6) (1.7) 0.3 (0.9) (1.5) 0.2 (0.1) 1.6 (15.6) 2.6 2.0 (1.4) 0.2 (0.2) 0.5 0.0 0.1 0.1 (0.4) (0.1) (0.0) (0.0) (0.1) (0.0) (0.0) (0.2) 2.1 (0.0) 0.0 (0.2) (0.1) 0.0 2.46 4.33 4.18 5.50 7.29 4.71 5.10 9.02 5.24 6.02 4.75 0.88 5.89 10.54 1.14 5.40 2.62 15.78 5.50 3.58 3.93 0.40 0.84 2.88 0.44 1.04 0.96 1.76 0.93 0.46 0.85 0.45 0.87 0.74 0.99 0.54 2.07 1.00 0.31 1.56 1.32 2.42 4.15 4.10 5.43 7.21 4.67 5.12 8.90 5.10 6.03 4.78 0.88 5.81 10.50 1.12 5.32 2.55 15.76 5.41 3.57 4.01 0.39 0.83 2.85 0.42 1.01 0.97 1.71 0.91 0.45 0.84 0.44 0.83 0.73 0.99 0.55 2.11 0.99 0.31 1.45 1.32 2.40 4.16 4.05 5.46 7.20 4.64 5.11 8.86 5.08 6.00 4.79 0.89 5.84 10.52 1.11 5.25 2.55 15.76 5.40 3.50 3.94 0.38 0.83 2.84 0.42 1.00 0.97 1.74 0.91 0.44 0.86 0.44 0.81 0.70 0.99 0.57 2.07 0.99 0.31 1.53 1.31 2.41 4.18 4.05 5.47 7.24 4.61 5.14 8.90 5.05 6.03 4.80 0.88 5.80 10.52 1.10 5.22 2.59 15.72 5.39 3.55 3.99 0.38 0.85 2.91 0.41 1.00 0.96 1.71 0.93 0.44 0.84 0.45 0.86 0.71 0.99 0.55 2.06 1.00 0.31 1.55 1.32 2.40 4.27 3.94 5.48 7.17 4.65 5.10 8.85 4.87 6.05 4.80 0.88 5.77 10.50 1.09 5.25 2.62 15.80 5.33 3.55 3.94 0.39 0.85 2.84 0.41 1.00 0.97 1.69 0.92 0.41 0.82 0.44 0.82 0.71 0.97 0.50 2.02 0.98 0.31 1.49 1.33 (0.01) 0.09 (0.11) 0.01 (0.07) 0.04 (0.04) (0.05) (0.18) 0.02 0.00 0.00 (0.03) (0.02) (0.01) 0.03 0.03 0.08 (0.06) 0.00 (0.05) 0.01 (0.01) (0.07) (0.00) 0.00 0.01 (0.02) (0.01) (0.03) (0.02) (0.01) (0.04) 0.00 (0.02) (0.05) (0.04) (0.03) (0.01) (0.06) 0.01 OUT IN IN IN OUT OUT IN OUT OUT OUT OUT IN OUT IN IN OUT IN OUT IN IN OUT IN OUT IN OUT IN OUT OUT OUT OUT OUT OUT OUT OUT OUT IN IN OUT OUT OUT OUT Name (B) Cur. Chg 22-Mar 23-Mar 26-Mar 27-Mar 28-Mar Chg (A+B) DMF Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Page 3 of 4
27. 30-Mar-18 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo No Name 22-Mar Tel: +603-2167 9607 Total Money Flow (RM'mn) 23-Mar 26-Mar 27-Mar Total 28-Mar 5D MF stsoo@ta.com.my (A) (B) Prv. Chg Cur. Chg 22-Mar 23-Mar www.taonline.com.my CLOSING PRICE 26-Mar 27-Mar (A+B) 28-Mar Chg DMF FBMKLCI (29.8) 7.5 2.6 13.0 (28.5) (35.2) 10.5 (41.5) 1,877 1,865 1,860 1,862 1,858 (4.58) 1 MAYBANK (7.6) 4.5 (3.0) 1.4 (0.1) (4.8) 4.3 (1.5) 10.54 10.50 10.52 10.52 10.50 (0.02) IN 2 PBBANK (22.6) 2.8 3.8 (0.7) (2.5) (19.2) (4.5) (1.7) 24.04 24.00 23.92 23.98 23.96 (0.02) OUT 3 TENAGA 1.1 1.1 (0.1) (0.6) (16.2) (14.7) (0.4) (15.6) 15.78 15.76 15.76 15.72 15.80 0.08 OUT 4 CIMB 1.3 (1.1) 4.1 (5.7) (3.4) (4.8) (9.8) 2.3 7.29 7.21 7.20 7.24 7.17 (0.07) OUT 5 PCHEM (1.9) (1.1) (1.1) 4.3 (2.2) (2.0) 5.4 (6.5) 8.21 8.18 8.15 8.28 8.25 (0.03) OUT 6 IHH 0.3 1.4 0.8 1.6 (3.0) 0.9 0.8 (4.6) 6.02 6.03 6.00 6.03 6.05 0.02 OUT 7 AXIATA (0.6) (0.4) 0.1 1.5 0.9 1.4 1.4 (0.6) 5.50 5.43 5.46 5.47 5.48 0.01 IN 8 MAXIS 0.1 (0.1) 0.2 0.0 (0.9) (0.7) (0.1) (0.9) 5.89 5.81 5.84 5.80 5.77 (0.03) OUT OUT 9 HLBANK 0.2 (0.2) (0.3) (0.1) 0.1 (0.2) 0.3 0.2 19.22 18.72 18.56 18.52 18.58 0.06 IN 10 SIME PLT 0.1 (0.5) (0.3) (0.2) (0.9) (1.8) 0.1 (0.7) 5.60 5.64 5.58 5.59 5.52 (0.07) OUT 11 DIGI 0.4 0.2 0.4 0.4 0.0 1.4 (0.1) (0.4) 4.71 4.67 4.64 4.61 4.65 0.04 OUT 12 NESTLE 2.8 0.9 (1.1) 2.4 0.2 5.2 3.5 (2.2) 141.80 150.00 148.00 149.70 149.70 0.00 IN 13 PETGAS 0.1 (0.1) 0.5 0.1 (0.7) (0.2) (0.4) (0.8) 18.00 17.88 17.80 17.82 17.84 0.02 OUT 14 GENTING 0.0 0.1 0.5 (0.3) (0.9) (0.7) (0.8) (0.5) 9.02 8.90 8.86 8.90 8.85 (0.05) OUT 15 MISC 0.2 (0.0) (1.2) (0.6) (0.2) (1.9) 0.6 0.5 7.20 7.15 7.15 7.04 7.05 0.01 IN 16 IOI CORP 0.3 (0.6) 0.1 0.1 (1.6) (1.7) (0.0) (1.7) 4.75 4.78 4.79 4.80 4.80 0.00 OUT 17 GENM 2.5 3.5 (2.0) 1.2 (3.6) 1.5 3.2 (4.8) 5.24 5.10 5.08 5.05 4.87 (0.18) OUT 18 KLK (2.1) (0.6) 1.1 5.5 3.1 7.0 4.4 (2.4) 25.50 25.50 25.48 25.56 25.56 0.00 IN 19 PETDAG 0.1 0.7 0.0 0.4 (0.1) 1.2 0.4 (0.5) 24.80 24.70 24.70 24.70 24.76 0.06 OUT 20 HAP SENG 0.1 0.0 0.1 0.0 0.2 0.4 (0.1) 0.2 9.88 9.66 9.70 9.70 9.71 0.01 IN 21 HLFG 0.3 (0.6) 0.0 0.8 1.0 1.4 0.7 0.2 19.20 19.00 19.02 19.10 19.18 0.08 IN 22 PPB (0.6) (0.3) 0.3 3.1 (0.8) 1.7 2.8 (3.8) 18.92 18.92 18.96 19.18 19.16 (0.02) OUT 23 TM 0.3 0.5 1.7 0.2 2.8 5.5 (1.4) 2.6 5.50 5.41 5.40 5.39 5.33 (0.06) IN 24 RHBBANK (3.5) (0.2) (0.1) (0.1) (0.2) (3.9) (0.0) (0.1) 5.40 5.32 5.25 5.22 5.25 0.03 OUT 25 PMETAL (0.4) (0.7) (0.5) 0.0 (0.8) (2.4) 0.5 (0.8) 4.98 4.95 4.85 4.80 4.77 (0.03) OUT 26 SIME (0.1) (2.0) (1.1) (1.2) 0.4 (4.0) (0.1) 1.6 2.62 2.55 2.55 2.59 2.62 0.03 IN 27 YTLCORP 0.1 0.1 (0.1) (0.2) 0.1 0.0 (0.1) 0.3 1.46 1.41 1.38 1.39 1.36 (0.03) IN 28 KLCCS (0.7) 0.2 (0.4) (0.2) (0.0) (1.2) 0.2 0.2 7.10 6.88 6.89 6.95 7.02 0.07 IN 29 AMBANK 0.0 0.1 (0.1) 0.2 0.7 0.9 0.3 0.5 4.18 4.10 4.05 4.05 3.94 (0.11) IN 30 ASTRO 0.1 0.2 0.1 (0.2) (0.0) 0.2 (0.3) 0.1 2.22 2.18 2.06 2.03 2.02 (0.01) OUT 10.2 (40.1) (29.9) 16.1 (8.7) 7.4 13.8 (11.2) 2.6 23.0 (9.9) 13.1 9.5 (37.9) (28.5) 72.6 (107.8) (35.3) 20 (10) 15 (15) 16 (14) 18 (12) 11 (19) (RM'mn) INFLOW OUTFLOW NET FLOW Daily Trading Participation COMPANIES INFLOW OUTFLOW Date Retail Institution Foreign Total 22-Mar 23-Mar 26-Mar 27-Mar 28-Mar 21.7% 20.0% 24.4% 22.1% 22.2% 54.8% 54.8% 49.2% 55.8% 50.8% 23.5% 25.2% 26.4% 22.1% 27.0% 100% 100% 100% 100% 100% 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 Friday, March 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 4 of 4
28. Technical View Friday , March 30, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Stock Screen Malaysia End Day Census of 29.03.2018 Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas. The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/ SELL) No Stock Name Price RSI Lower Middle Upper 14-day 10-day 30-day 50-day Vol 20-day avg vol 1 MISC BHD 7.05 6.71 7.03 7.36 48.14 7.15 7.02 7.16 883,000 2 CHIN TECK PLANTATIONS BHD 7.70 7.33 7.65 7.97 52.45 7.59 7.64 7.68 4,100 1,036,420 1,325 3 PUBLIC BANK BERHAD 24.00 22.45 23.35 24.26 82.40 23.62 23.00 22.38 8,565,400 5,436,370 4 GENTING PLANTATIONS BHD 10.20 9.82 10.11 10.41 55.10 10.21 10.03 10.07 282,600 336,500 5 HARTALEGA HOLDINGS BHD 5.87 5.40 5.74 6.07 54.15 5.84 5.77 5.74 2,007,300 2,586,040 6 NPC RESOURCES BHD 2.00 1.75 1.97 2.20 51.32 1.91 1.96 2.07 5,000 600 7 HAI-O ENTERPRISE BHD 5.07 4.57 4.92 5.26 56.49 4.77 5.02 5.12 327,800 282,605 8 HAP SENG CONSOLIDATED 9.72 9.44 9.68 9.91 56.81 9.75 9.53 9.52 379,300 511,375 9 TIME DOTCOM BHD 8.34 8.07 8.29 8.51 50.71 8.33 8.25 8.41 617,600 210,765 10 HONG LEONG FINANCIAL GROUP 19.18 18.72 19.02 19.32 56.48 19.06 18.93 18.65 291,400 286,160 11 SCIENTEX BHD 8.35 7.99 8.24 8.49 51.80 8.19 8.32 8.45 170,300 193,155 12 SOUTHERN ACIDS MALAYSIA BHD 4.10 3.81 4.02 4.23 53.17 3.93 4.09 4.17 111,300 13,490 13 GRAND HOOVER BHD 0.69 0.50 0.65 0.81 50.87 0.70 0.65 0.69 149,200 69,785 14 MALAYSIA AIRPORTS HLDGS BHD 8.85 8.68 8.81 8.94 51.90 8.86 8.78 8.88 2,779,000 3,228,610 15 BINTULU PORT HOLDINGS BHD 5.90 5.77 5.88 5.98 50.03 5.87 5.93 5.95 1,700 800 16 BERMAZ AUTO BHD 2.27 1.95 2.15 2.35 58.93 2.22 2.16 2.19 2,148,700 2,832,620 17 SHANGRI-LA HOTELS (MAL) BHD 5.35 4.63 5.03 5.42 66.02 5.11 5.02 5.03 325,300 128,505 18 WARISAN TC HOLDINGS BHD 2.05 1.95 2.03 2.12 53.73 2.06 2.02 2.01 10,000 2,330 19 UZMA BHD 1.48 1.36 1.45 1.54 54.97 1.48 1.42 1.44 427,000 346,050 20 IOI CORP BHD 4.78 4.59 4.71 4.84 61.77 4.71 4.68 4.63 4,020,300 3,983,540 21 SIME DARBY PROPERTY BHD 1.42 1.34 1.41 1.47 49.96 1.42 1.41 1.46 2,739,700 3,408,935 22 IMASPRO CORP BHD 1.84 1.76 1.82 1.88 52.64 1.84 1.82 1.83 88,000 1,540 23 AXIS REAL ESTATE INVESTMENT 1.27 1.18 1.24 1.31 48.96 1.25 1.29 1.33 1,608,900 840,445 24 EDARAN BHD 0.78 0.48 0.64 0.81 63.55 0.68 0.64 0.66 697,500 398,030 25 GAMUDA BHD 5.15 4.93 5.05 5.17 60.37 5.08 5.04 5.05 6,781,400 4,191,450 26 SPRITZER BHD 2.40 2.31 2.36 2.42 55.27 2.36 2.34 2.34 16,900 21,725 27 DAIMAN DEVELOPMENT BHD 2.17 2.12 2.16 2.19 52.95 2.16 2.15 2.17 154,000 17,255 28 EVERSENDAI CORP BHD 0.91 0.65 0.79 0.93 68.85 0.78 0.80 0.80 2,851,800 1,835,805 29 D'NONCE TECHNOLOGY BHD 0.33 0.27 0.30 0.34 58.15 0.29 0.31 0.33 6,145,100 811,885 30 KIM LOONG RESOURCES BHD 4.24 4.13 4.19 4.25 55.22 4.20 4.19 4.21 31,400 32,755 Raw data sourced from Bloomberg *Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns. INTERPRETATION OF TECHNICAL INDICATORS: Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day, and negative if it remains below this average. 14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and imply further near-term downside risk. Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band, and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful observation when projecting price targets. Page 1 of 2
29. *Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy breakout trades. [UPPER BOLLINGER BREAKOUT] Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/ SELL guide) No Stock Name Price Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day Vol 20-day avg vol 1 TENAGA NASIONAL BHD 16.16 15.46 15.71 15.96 77.45 15.74 15.69 15.73 15,485,300 7,632,500 2 LPI CAPITAL BERHAD 19.84 19.05 19.40 19.74 71.33 19.43 19.34 19.43 50,000 67,120 3 CLOUDARON GROUP BHD 0.35 0.16 0.23 0.30 74.32 0.25 0.23 #N/A N/A 4 PANSAR BHD 1.17 0.82 0.98 1.14 89.78 1.02 0.91 5 ANCOM BHD 0.54 0.47 0.49 0.52 64.27 0.49 6 SIN HENG CHAN (MALAYA) BHD 0.60 0.48 0.53 0.59 60.66 0.53 7 MY EG SERVICES BHD 2.84 2.53 2.68 2.84 74.84 8 EKOVEST BHD 1.01 0.94 0.97 1.01 9 SARAWAK PLANTATION BHD 1.78 1.70 1.74 1.78 10 HENG HUAT RESOURCES GROUP BH 0.23 0.21 0.22 11 ACOUSTECH BHD 0.42 0.38 12 FAVELLE FAVCO BHD 2.58 2.51 13 METRONIC GLOBAL BHD 0.06 14 APFT BHD 15 G3 GLOBAL BHD 16 RED SENA BHD 14,500 1,225 0.75 4,385,700 4,593,510 0.51 0.53 816,500 206,905 0.54 0.56 38,100 4,405 2.72 2.67 2.62 8,729,300 9,963,650 56.61 0.97 0.99 1.00 50,631,700 6,987,170 62.57 1.75 1.74 1.76 314,500 50,810 0.23 50.96 0.22 0.22 0.24 100 142,470 0.40 0.42 56.16 0.40 0.40 0.41 366,300 115,145 2.55 2.58 51.81 2.54 2.57 2.63 25,000 59,755 0.05 0.05 0.06 56.15 0.06 0.05 0.05 3,169,300 3,460,260 0.02 0.01 0.01 0.02 53.64 0.01 0.01 0.01 300,000 5,149,015 0.85 0.68 0.77 0.85 63.14 0.77 0.76 0.79 751,500 84,530 0.47 0.46 0.47 0.47 46.61 0.47 0.47 0.47 3,884,900 1,474,460 17 JADI IMAGING HOLDINGS BHD 0.06 0.05 0.06 0.06 41.29 0.06 0.06 0.06 1,143,800 966,530 18 BIO OSMO BHD 0.05 0.04 0.05 0.05 54.97 0.05 0.05 0.05 1,854,800 1,636,865 19 BOUSTEAD HEAVY INDUSTRIES CO 1.96 1.78 1.87 1.96 57.83 1.90 1.91 1.94 1,200 3,805 20 XINGHE HOLDINGS BHD 0.06 0.05 0.06 0.06 52.10 0.06 0.06 0.06 3,269,600 4,666,425 Raw data sourced from Bloomberg *Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No Stock Name Price Bollinger Band Lower Middle RSI Upper 14-day Moving Average 10-day 30-day 50-day Vol 20-day avg vol 1 BRITISH AMERICAN TOBACCO BHD 26.30 26.46 27.59 28.71 29.11 27.75 28.35 30.20 145,300 288,955 2 ALLIANZ MALAYSIA BHD 11.80 11.93 12.60 13.27 10.53 12.46 12.80 12.93 1,700 29,400 3 APOLLO FOOD HOLDINGS BHD 3.79 3.92 4.13 4.34 21.81 4.10 4.19 4.30 26,200 9,850 4 KESM INDUSTRIES BHD 18.66 18.77 19.72 20.67 35.00 19.66 19.95 19.86 7,900 49,250 5 ISKANDAR WATERFRONT CITY BHD 1.12 1.21 1.35 1.49 25.57 1.39 1.36 1.36 8,199,700 2,267,745 6 PRESS METAL ALUMINIUM HOLDIN 4.54 4.62 4.96 5.30 20.14 4.92 5.26 5.43 17,053,300 9,785,480 7 KUCHAI DEVELOPMENT BHD 2.24 2.31 2.48 2.66 36.76 2.46 2.47 2.37 214,200 296,790 8 HUME INDUSTRIES BHD 1.70 1.77 1.92 2.07 16.34 1.89 1.95 2.01 24,300 25,935 9 CAHYA MATA SARAWAK BHD 3.85 3.90 4.11 4.31 28.74 4.07 4.19 4.18 158,200 356,465 10 MEGA FIRST CORP BHD 3.25 3.29 3.51 3.74 17.57 3.47 3.56 3.61 142,700 196,010 11 UEM EDGENTA BHD 2.32 2.36 2.48 2.61 36.40 2.65 2.63 2.56 731,600 260,780 12 CAELY HOLDINGS BHD 0.82 0.85 0.96 1.06 23.30 0.94 1.00 1.03 594,000 562,585 13 MAGNA PRIMA BHD 1.07 1.11 1.21 1.31 33.59 1.18 1.22 1.24 10,400 2,630 14 UMS-NEIKEN GROUP BHD 0.85 0.89 1.01 1.13 32.23 0.99 1.05 1.09 88,700 19,100 15 MGB BHD 1.41 1.44 1.56 1.67 26.80 1.54 1.61 1.64 373,600 146,410 16 STAR MEDIA GROUP BHD 1.15 1.18 1.26 1.34 14.93 1.25 1.30 1.34 140,300 414,175 17 N2N CONNECT BHD 0.75 0.78 0.89 1.00 22.64 0.88 0.92 0.94 1,569,000 1,140,720 18 TELEKOM MALAYSIA BHD 5.21 5.24 5.55 5.86 23.20 5.48 5.73 5.85 756,300 3,597,445 19 MULPHA INTERNATIONAL BHD 2.13 2.16 2.35 2.54 24.94 2.30 2.38 2.44 27,000 55,560 20 PESTECH INTERNATIONAL BHD 1.56 1.59 1.68 1.78 27.02 1.67 1.74 1.78 418,300 482,045 Raw data sourced from Bloomberg S Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Friday, March 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 2