Bursa Malaysia Daily Market Report - 4 January

Transcription

1. Thursday , 04 January, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . S e m ic o n d u c t o r S e c t o r : G ro w th M o m e n tu m Su s ta in s 2 . W e s t p o rt s H o l d in g s B e rh a d : T h ro u g h p u t Gro w th to R e su m e in F Y 1 8 Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks (L o ca l) 2. D ai l y St o ck S cr een 3. D ai l y For ei gn T ech n i c al St o ck P i cks ( FS STI ) 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 Thursday , 04 January 2018 For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my KLSE Market Statistics (03.01.2018) Volume (mil) +/-chg (RMmn) Main Market 2,900.3 684.3 3,318.2 Warrants 1,095.4 431.5 167.3 ACE Market 1,102.8 291.7 188.5 Bond 11.5 4.9 2.6 ETF 0.0 -0.4 0.0 LEAP 0.0 0.0 0.0 Total 5,110.0 3,676.6 Off Market 42.3 -25.7 12.8 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP January Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA JAG-WA 28.3 @ VERTICA 3.0 @ YNHPROP 1.5 @ ASDION 1.3 @ BOILERM 1.0 @ GLOMAC 1.0 @ PLENITU 1.0 @ YONGTA-PA 1.0 @ Up Down 469 183 216 81 79 38 4 3 3 0 0 0 771 305 % chg % YTD chg 1,792.79 12,930.37 17,274.47 1,798.00 10.09 103.41 149.00 5.00 0.57 0.81 0.87 0.28 9.20 12.77 17.39 9.94 24,922.68 7,065.53 7,671.11 22,764.94 2,486.35 30,560.95 3,464.28 1,778.53 6,251.48 3,369.11 1,934.00 6,070.38 98.67 58.63 23.01 0.00 6.70 45.64 33.98 24.82 -87.76 20.78 14.80 9.10 0.40 0.84 0.30 0.00 0.27 0.15 0.99 1.42 -1.38 0.62 0.77 0.15 26.11 31.25 7.40 19.10 22.69 38.91 20.26 15.27 18.03 8.55 -1.78 7.14 (RM) 0.03 1.10 1.31 0.15 0.81 0.61 1.55 0.95 Counter Mkt Cap. Chg (RM’mn) (RM) MAYBANK 105,347 TENAGA 86,690 PCHEM 63,600 CIMB 60,243 AXIATA 49,040 SIMEPLT 37,405 GENTING 35,845 PETGAS 35,498 GENM 32,877 KLK 26,411 0.12 0.08 0.10 0.03 0.03 0.01 0.06 0.42 0.02 0.08 Important Dates MENANG - 4:5 Bonus Issue - BI of up to 320.5m shares. 4 bonus shares for every 5 existing shares held. Ex-Date: 05/01/2018. Entitlement Date: 09/01/2018. LISTING ON: 10/01/2018. XDL - 1:1 Bonus Issue - BI of up to 894.2m shares. 1 bonus share for every 1 existing share held. Ex-Date: 08/01/2018. Entitlement Date: 10/01/2018. LISTING ON: 11/01/2018. Stocks rose on Wednesday as blue chips recovered from profit-taking and strong rotational plays on GLC-related lower liners highlighted trade on the broader market.The KLCI climbed up 10.09 points to close at 1,792.79, off an opening low of 1,785.21 and high of 1,795.87, as gainers led losers 771 to 305 on very strong turnover of 5.11bn shares worth RM3.67bn. While strength in the ringgit, oil price and GE14 should provide further upside catalysts for the local market to plow higher, strong follow-through buying momentum and market breadth will be crucial to sustain gains. Next major overhead resistance above 1,796 and the 1,800 psychological level will be 1,823 and 1,867, the respective May and April 2017 peaks. Immediate uptrend supports are at 1,782, 1,772 and 1,767, the rising 10day moving average. Further rally on Ekovest will aggravate overbought momentum and encourage profit-taking, with resistance seen from the 61.8%FR (RM1.14) and 200-day ma (RM1.15), while key retracement support is seen from the 38.2%FR (90sen). Similarly, overbought technical momentum from yesterday's sharp rally should see Wah Seong encounter profit-taking resistance from the 176.4%FP (RM1.33) to 200%FP (RM1.42), while important retracement support is at the 123.6%FP (RM1.12). News Bites • • • Top 10 KLCI Movers Based on Mkt Cap. Off Market (mn) Review & Outlook Value Value/ +/-chg Volume 1442.7 1.14 67.9 0.15 51.8 0.17 1.3 0.22 -0.43 1.90 0.00 0.00 0.72 -21.7 0.30 Vol. (mn) 13.95 10.31 7.96 24.80 6.60 8.63 3.42 0.97 8.45 0.70 • • • • • • • • Felda Global Ventures Holdings Bhd has received the Roundtable Sustainable Palm Oil Principles and Criteria certification for 8 mill complexes at the end of 2017. Samling Group is planning an IPO of its automotive operations that could raise more than RM1bn (US$250mn), people with knowledge of the matter said. Westports Holdings Berhad announced that it has achieved a container throughput of 9.02mn TEUs, representing a decline of 9.3% YoY, for FY17. Kerjaya Prospek Group Bhd has proposed to undertake a bonus issue on the basis of 6 bonus shares for every 5 existing Kerjaya shares held. My EG Services Bhd will also be providing a job matching and placement service to match Malaysian employers with foreign workers. TDM Bhd has accepted land parcels totalling 4,515ha in Kemaman and Dungun from the state government through a grant, which is in line with its domestic plantation expansion plan. Wah Seong Corp Bhd will pay Dutch pipe-coating solutions fabricator and installer Bauhuis BV £500,000 as part of a settlement agreement, bringing an end to arbitration proceedings in London between the 2 parties. Selangor Dredging Bhd has declared a special dividend of 19 sen per share from proceeds of the group's sale of Wisma Selangor Dredging. The dividend is payable on Jan 29 with the ex-date set at Jan 16. Aturmaju Resources Bhd has proposed to reduce its capital from RM61.1mn to RM6.7mn to help improve its financial position and cut accumulated losses. The US ISM manufacturing index rose 1.5 percentage points from a month earlier to a reading of 59.7 in December, the second-highest level since early 2011. Global semiconductor sales in November 2017 was at its highest at US$37.7bn (+21.5% YoY, +1.6% MoM). Exchange Rate USD/MYR 4.0165 -0.0030 USD/JPY 112.25 -0.0400 EUR/USD 1.202 -0.0039 Commodities Futures Palm Oil (RM/mt) 2,612.00 64.00 Crude Oil ($/Barrel) 61.93 1.56 Gold ($/tr.oz.) 1,314.50 -4.60 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. 4-Jan-18 Technical Comments : Take Profit on Ekovest & Wah Seong Further rally on Ekovest will aggravate overbought momentum and encourage profit-taking, with resistance seen from the 61.8%FR (RM1.14) and 200-day ma (RM1.15), while key retracement support is seen from the 38.2%FR (90sen). Similarly, overbought technical momentum from yesterday’s sharp rally should see Wah Seong encounter profit-taking resistance from the 176.4%FP (RM1.33) to 200%FP (RM1.42), while important retracement support is at the 123.6%FP (RM1.12). EKOVEST RM1.02 (+0.095) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 0.98 0.93 0.88 10-day 30-day 50-day RM RM RM DAILY MACD DMI Recent Signal Signal Change SELL Recent Signal Signal Change WAH SEONG RM RM RM SIMPLE MOVING AVERAGES 1.24 1.16 1.08 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change BUY RM1.31 (+0.22) BOLLINGER BANDS Upper Middle Lower 0.94 0.94 0.98 RM RM RM DAILY MACD 1.15 1.15 1.09 SELL Page 2 of 3
4. Thursday , January 04, 2018 FBMKLCI: 1,792.79 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 RM Strength and GE14 Provide Upside Catalyst Stocks rose on Wednesday as blue chips recovered from profit-taking and strong rotational plays on GLC-related lower liners highlighted trade on the broader market. The KLCI climbed up 10.09 points to close at 1,792.79, off an opening low of 1,785.21 and high of 1,795.87, as gainers led losers 771 to 305 on very strong turnover of 5.11bn shares worth RM3.67bn. Next Major Resistance at 1,823/1,867 While strength in the ringgit, oil price and GE14 should provide further upside catalysts for the local market to plow higher, strong follow-through buying momentum and market breadth will be crucial to sustain gains. Next major overhead resistance above 1,796 and the 1,800 psychological level will be 1,823 and 1,867, the respective May and April 2017 peaks. Immediate uptrend supports are at 1,782, 1,772 and 1,767, the rising 10-day moving average. Take Profit on Ekovest & Wah Seong Further rally on Ekovest will aggravate overbought momentum and encourage profit-taking, with resistance seen from the 61.8%FR (RM1.14) and 200-day ma (RM1.15), while key retracement support is seen from the 38.2%FR (90sen). Similarly, overbought technical momentum from yesterday’s sharp rally should see Wah Seong encounter profit-taking resistance from the 176.4%FP (RM1.33) to 200%FP (RM1.42), while important retracement support is at the 123.6%FP (RM1.12). Asian Markets Gain Mildly on Weak Dollar Asian stocks closed with moderate gains on Wednesday, tracking sizable increases seen on Wall Street overnight as the dollar traded near three-month lows. South Korea's benchmark Kospi index edged up 0.27 percent to close at 2,486.35 as large cap technology names extended the moderate gains seen last session. Heavyweights Samsung Electronics and SK Hynix closed up 1.18 percent and 1.44 percent, respectively. Mainland markets also trended higher, with the Shanghai Composite advancing 0.65 percent to end at 3,370.1 and the Shenzhen Composite adding 0.77 percent to close at 1,934. Down Under, the S&P/ASX 200 edged up 0.15 percent to close at 6,070.4 as mining stocks led the index higher. Rio Tinto and BHP, the country's two-largest miners, closed up 2.21 percent and 1.68 percent, respectively. Tech and Energy Sector Lift Wall Street to New Records U.S. stock markets finished at records on Wednesday, putting the main indexes in a similar position to where they ended 2017, as a rally in tech and energy sector supported the buying mood on Wall Street. Rallying semiconductor stocks have boosted the broader technology sector at the start of 2018, after the PHLX Semiconductor Index added nearly 40 percent last year. The makers of computer chips used in everything from smartphones to self-driving cars have gotten a boost recently from a Semiconductor Industry Association report that showed a 21.5 percent increase in world-wide chip sales in November from the same month a year earlier, according to analysts. Stocks extended gains after minutes from the Federal Reserve’s December meeting showed most officials backed continued gradual rate increases. Most participants at the Fed gathering reiterating support for “continuing a gradual approach to raising the target range” for the Page 1 of 6
5. 4-Jan-18 benchmark policy rate , according to minutes of the Federal Open Market Committee’s Dec. 12-13 meeting. Energy stocks were also among the biggest gainers, climbing alongside crude oil prices amid antigovernment protests in Iran that could lead to supply disruptions. U.S. West Texas Intermediate crude ended Wednesday's session up $1.26, or 2.1 percent, at USD61.63, posting its best closing price since December 2014. The Dow Jones Industrial Average rose 98.67 points, or 0.4 percent, to 24,922.68, the S&P 500 gained 17.26 points, or 0.64 percent, to 2,713.07 and the Nasdaq Composite added 58.63 points, or 0.84 percent, to 7,065.53. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Thursday, January 04, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 6
6. 4-Jan-18 N e w s I n B r i e f Corporate Felda Global Ventures Holdings Bhd has received the Roundtable Sustainable Palm Oil Principles and Criteria certification for 8 mill complexes at the end of 2017 . Aside from capitalising on the premium offered, FGV will be able to access markets in the European Union and North America, as well as, customers demanding for certified palm oil products. (Bernama) Westports Holdings Bhd said it achieved a container throughput of about 9mn TEUs for FY17 as Port Klang became one of the leading transhipment hubs in the region for the Ocean Alliance. Westports said the 9m TEUs figure is within Westports' volume guidance. (Bursa Malaysia/ The Edge) Samling Group is planning an IPO of its automotive operations that could raise more than RM1bn (US$250mn), people with knowledge of the matter said. Samling is working with advisers to explore a possible dual listing of the business in Kuala Lumpur and Singapore later this year, according to the people. (The Edge) Kerjaya Prospek Group Bhd has proposed to undertake a bonus issue on the basis of 6 bonus shares for every 5 existing Kerjaya shares held. The Group also proposed a bonus issue of new warrants in Kerjaya Prospek, on the basis of 6 bonus warrants for every twenty 20 existing Kerjaya shares held on the same entitlement date as the proposed bonus issue. (Bursa Malaysia/ New Straits Times) My EG Services Bhd which has rechristened its wholly-owned subsidiary Ipidato Dot Com Sdn Bhd to My E.G Jobs Sdn. Bhd, will also be providing a job matching and placement service to match Malaysian employers with foreign workers. It has launched the new service which will be undertaken by My E.G Jobs on January 3. (Bursa Malaysia/ The Sun) TDM Bhd has accepted land parcels totalling 4,515ha in Kemaman and Dungun from the state government through a grant, which is in line with TDM's domestic plantation expansion plan. Wah Seong Corp Bhd will pay Dutch pipe-coating solutions fabricator and installer Bauhuis BV £500,000 (RM2.7mn) as part of a settlement agreement, bringing an end to arbitration proceedings in London between the 2 parties. The settlement follows an outstanding payment claim of €3.9mn by Bauhuis against Wah Seong. (Bursa Malaysia/ The Edge) Selangor Dredging Bhd has declared a special dividend of 19 sen per share from proceeds of the group's sale of Wisma Selangor Dredging. The dividend is payable on Jan 29 with the ex-date set at Jan 16. (Bursa Malaysia/ The Edge) QES Group Bhd, an inspection, test and measurement equipment maker, aims to be listed on the ACE Market of Bursa Malaysia by 1Q18. Proceeds from the IPO would be mainly used for capex to purchase demonstration equipment for its distribution division, tools, accessories and new information technology equipment for operational use. (New Straits Times) Aturmaju Resources Bhd has proposed a reduction of its share capital to help improve its financial position and cut accumulated losses. The group plans to reduce its capital from RM61.1mn to RM6.7mn, giving rise to a credit of RM54.4mn. (Bursa Malaysia/ The Edge) Managepay Systems Bhd will incorporate a new company to undertake the corporate exercise involving NVBA Petaling Jaya BC Sdn Bhd (PJBC) after the shares sale agreement for the acquisition of shares in PJBC fell through. The principal activities of PJBC are sports facilities management, badminton coaching, organising badminton competitions and other related services. (Bursa Malaysia/ The Sun) Page 3 of 6
7. 4-Jan-18 N e w s I n B r i e f Economy Asia ASEAN Manufacturing Sector Stagnates During December Manufacturing operating conditions across ASEAN were broadly unchanged at the end of the year , according to the headline Nikkei ASEAN Manufacturing Purchasing Managers’ Index (PMI), which slipped from 50.8 in November to 49.9 in December. Although only slightly below the threshold, this marked the first time that the PMI has posted below the no-change 50.0 level since July. A softer increase in output and largely stagnant new order volumes were key factors weighing on the headline index. December data pointed to mixed manufacturing sector performances across the monitored ASEAN nations. Four of the seven countries covered by the survey indicated an improvement in business conditions, down from five in November. Growth remained strongest in the Philippines for the third successive month, although the rate of improvement slowed slightly since November. Vietnam moved up to second place as growth in its manufacturing sector picked up to a three-month high, Myanmar and Thailand were the other two countries seeing an improvement in manufacturing operating conditions, with the latter indicating the first upturn for three months. Both Malaysia and Indonesia fell back into decline after recording expansions in the previous month, though the rates of deterioration were marginal in both cases. Singaporean manufacturers registered a steeper rate of deterioration compared to November. Overall, client demand across the region softened as a renewed fall in foreign demand contributed to broadly unchanged volumes of total new business. (Markit Economics) Thailand Manufacturing Sector Expands in December 2017 Thailand's manufacturing activity expanded marginally in December, survey data from IHS Markit showed. The seasonally adjusted Nikkei Manufacturing Purchasing Managers' Index rose to 50.4 in December from 50.0 in November. Any reading above 50 indicates expansion in the sector. Among components, growth in both output and new orders were key drivers for the upturn, but employment and input inventories fell further. (RTT News) United States Fed Minutes Reveal Uncertainties Over Tax Cuts Federal Reserve officials in December debated whether new tax cuts would require them to raise short-term interest rates faster this year, after lifting them three times last year. Officials expressed growing confidence in the strength of the labour market and the economy more broadly, according to minutes of the Fed’s Dec. 12-13 policy meeting. Since the meeting, Congress approved and President Donald Trump signed into law a $1.5 trillion tax cut, which could further muddy the Fed’s efforts to ensure the economy remains on an even keel. “Participants discussed several risks that, if realized, could necessitate a steeper path of increases” in the benchmark federal-funds rate, according to the minutes. “These risks included the possibility that inflation pressures could build unduly…perhaps owing to fiscal stimulus or accommodative financial-market conditions,” the minutes said. After holding its benchmark short-term rate near zero for seven years, the Fed has raised it five times since late 2015, most recently in December, to a range between 1.25% and 1.5%. Officials also penciled in three more quarter-percentage point rate increases in 2018 and two in 2019. The Fed isn’t expected to take any action at its next meeting, Jan. 30-31. Before the minutes were released, the market for federal-funds futures contracts, where traders bet on the path of interest rates, showed a 62% probability of a rate increase at the Fed’s second meeting of the year, in March. (The Wall Street Journal) U.S. Factory Activity Gained Momentum in December The U.S. factory sector posted one of its best months of the economic expansion in December as sales hit a 14-year high, the latest sign economic growth is picking up. A key manufacturing index rose 1.5 percentage points from a month earlier to a reading of 59.7 in December, the second-highest level since early 2011, the Institute for Supply Management said. A subindex of new orders—a measure of sales at factories—rose more than 5 points to 69.4, the highest since early 2004. Readings above 50 indicate growth, while readings Page 4 of 6
8. 4-Jan-18 below 50 indicate contraction . Economists surveyed by The Wall Street Journal had expected the overall index to slip to 58 in December. Details hinted at further growth in coming months. While sales picked up, inventories—at both factories and their customers—fell. That combination suggests factories will have to boost production further in the first quarter of 2018 to satisfy demand. Timothy Fiore, head of the ISM survey, pointed out the industry is also likely to see higher demand in 2018 due to a $1.5 trillion tax cut passed by Congress late last year. The tax-cut package is designed in part to prod U.S. businesses to spend on big-term projects, such as equipment and factories, in turn lifting demand for factory-made products. The report also showed a pickup in price pressures felt by factories. That could mean U.S. inflation is rising from modest levels. Employment growth at manufacturers, meanwhile, slowed, in part because of a lack of skilled workers. The ISM said the December level of activity corresponds with the overall economy growing at an annual rate of 5.2%. (The Wall Street Journal) U.S. Construction Spending Rises to Record High in November U.S. construction spending increased more than expected in November, hitting a record high, driven by a surge in investment in private residential and nonresidential projects. The Commerce Department said construction spending rose 0.8% to an all-time high of $1.257 trillion. October’s construction outlays were revised down to show a 0.9% rise instead of the previously reported 1.4% gain. Economists polled by Reuters had forecast construction spending increasing 0.5% in November. Construction spending advanced 2.4% on a year-onyear basis. In November, spending on private residential projects soared 1.0% to the highest level since February 2007 after rising 0.3% in October. The increase was in line with a recent jump in homebuilding and supports the view that housing would boost economic growth in the fourth quarter after being a drag to gross domestic product since the April-June period. The strong construction spending report suggests fourth-quarter GDP growth estimates, which are currently just below a 3.0% annualized rate, could be raised. The economy grew at a 3.2% pace in the third quarter. Spending on nonresidential structures rebounded 0.9% in November after falling 0.2% in the prior month. Overall, spending on private construction projects climbed 1.0% in November to a record high. That followed a 0.3% increase in October. Outlays on public construction projects rose 0.2% in November after jumping 3.5% in October. Spending on state and local government construction projects rose 0.7%. Federal government construction spending tumbled 4.8%. (Reuters) Europe and Uni ted Kingdom Housebuilding Boosts Slowing UK Construction Sector Growth in Britain’s construction industry slowed slightly during December, as infrastructure work stagnated and commercial office building work continued to decline, according to the latest survey of purchasing managers working in the sector. Housebuilding remained the bright spot for the industry, which entered its 16th consecutive month of growth during December, according to the survey. The IHS Markit construction purchasing managers’ index fell to 52.2 during the month, down from 53.1 in November. Anything above 50 indicates expansion while anything below 50 signals contraction. While the sector achieved moderate expansion at the end of 2017, activity “remained uneven and slowed overall since November. Britain’s construction sector struggled for much of last year. Commercial work declined, as companies failed to launch new projects and big infrastructure schemes, such as Crossrail 2, came to an end. The fall in commercial work has been blamed, in part, on uncertainty surrounding the future of Britain’s relationship with the EU, with many professional services firms reluctant to commit to spending on new office blocks without further clarity. (Financial Times) German Unemployment Declines, Rate at Record Low Germany's unemployment decreased notably and the rate hit a record low in December as companies raised employment amid improving economic conditions. The number of people out of work declined 29,000 in December from November, when it fell 20,000. The decrease was more than double the expected drop of 13,000. The unemployment rate remained Page 5 of 6
9. 4-Jan-18 unchanged at a record low 5 .5% in December. The rate for November was revised down from 5.6%. The record low unemployment rate suggested that wage growth should pick up at least a little in the year ahead. So while the recent pace of employment growth seems unlikely to be sustained, consumer spending should continue to grow at a pretty healthy pace, the economist added. Data from Destatis revealed that the ILO jobless rate fell slightly to an adjusted 3.6% in November from 3.7% in October. There were 1.57 million unemployed in November. Unemployment declined by around 14,000 from the previous month. (RTT News) Share Buy-Back: 03 January 2018 Company E&O FIAMMA JCBNEXT KPJ LIENHOE MALAKOF NIHSIN SCGM UNIMECH Bought Back Price (RM) 30,000 140,000 60,000 50,000 150,000 100,000 300,000 80,000 10,000 1.43 0.515/0.51 1.75 0.985/0.97 0.345/0.335 0.93 0.23 2.59/2.50 1.02 Total Treasury Shares 1.43/1.42 22,833,747 0.535/0.505 21,940,000 1.75/1.72 60,000 0.985/0.97 16,787,000 0.345/0.335 19,170,500 0.975/0.895 1,924,400 0.235/0.225 24,249,500 2.64/2.50 427,900 1.03/1.02 6,405,810 Source: Bursa Malaysia Hi/Lo (RM) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 6 of 6
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 03-Jan-18 AUTOMOBILE BAUTO 2.17 2.50 Buy 2,505 0.76 14.3 19.9 15.2 10.9 5.3 5.5 2.24 -3.1 1.84 17.9 MBMR 2.33 2.32 Hold 911 0.85 23.2 23.9 10.1 9.8 2.0 2.0 2.60 -10.4 2.01 15.9 -1.4 5.9 PECCA 1.53 1.69 Buy 283 na 11.1 12.5 13.7 12.3 3.6 4.0 1.70 -10.0 1.28 19.5 -1.3 SIME 2.41 1.97 Hold 16,390 1.40 12.0 12.7 20.1 19.0 1.2 1.3 2.55 -5.5 1.86 29.4 9.0 UMW 5.27 4.37 Sell 6,157 1.30 19.2 35.3 27.4 14.9 1.9 3.4 6.08 -13.3 4.09 28.7 1.3 -0.5 BANKS & FINANCIAL SERVICES ABMB 4.06 4.20 Buy 6,285 1.37 30.6 35.6 13.3 11.4 3.9 3.9 4.49 -9.6 3.62 12.2 AFFIN 2.37 2.50 Hold 4,605 0.80 24.2 28.1 9.8 8.4 3.4 3.4 2.98 -20.3 2.22 6.7 2.6 AMBANK 4.56 5.10 Buy 13,745 1.24 48.6 52.0 9.4 8.8 3.9 3.9 5.70 -20.0 4.06 12.3 3.4 -0.2 CIMB 6.53 7.00 Buy 60,243 1.53 50.9 56.0 12.8 11.7 3.9 4.3 7.08 -7.8 4.54 43.8 HLBANK 17.00 17.50 Buy 34,775 0.67 114.2 120.9 14.9 14.1 2.6 2.6 17.10 -0.6 13.06 30.2 0.0 MAYBANK 9.78 9.70 Hold 105,347 1.04 70.9 77.7 13.8 12.6 5.1 5.1 9.86 -0.8 8.01 22.1 -0.2 PBBANK 20.76 23.60 Buy 80,165 0.62 142.4 149.8 14.6 13.9 2.8 2.9 21.08 -1.5 19.66 5.6 -0.1 RHBBANK 5.14 5.20 Hold 20,612 1.65 52.2 53.8 9.9 9.6 2.9 2.9 5.59 -8.1 4.68 9.8 2.8 BURSA 10.40 11.10 Buy 5,590 0.88 39.0 41.5 26.7 25.1 3.3 3.3 10.98 -5.3 8.08 28.7 2.8 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 CONSTRUCTION GADANG 1.16 1.73 Buy 764 1.02 14.3 18.2 8.1 6.4 2.6 2.6 1.37 -15.3 1.01 14.9 4.5 GAMUDA 4.94 6.00 Buy 12,130 0.89 34.5 35.7 14.3 13.9 2.4 2.4 5.52 -10.5 4.58 7.9 -0.4 IJM 3.07 2.89 Sell 11,139 0.87 13.7 18.2 22.4 16.9 3.1 3.1 3.61 -15.0 2.71 13.3 0.7 PESONA 0.47 0.55 Buy 323 0.86 5.8 4.8 8.0 9.8 3.2 3.2 0.74 -36.7 0.44 6.9 3.3 SENDAI 0.86 0.58 Sell 668 1.28 9.6 9.0 8.9 9.5 1.2 1.2 1.39 -38.5 0.51 69.3 -1.2 SUNCON 2.51 2.65 Buy 3,244 0.50 14.7 16.4 17.1 15.3 2.2 2.4 2.53 -0.8 1.67 50.3 0.0 WCT 1.61 1.64 Hold 2,265 0.98 12.6 11.2 12.7 14.4 1.9 1.9 2.48 -34.9 1.46 10.3 -0.6 LITRAK 5.61 6.26 Hold 2,960 0.28 45.6 47.1 12.3 11.9 4.5 4.5 6.15 -8.8 5.40 3.9 1.1 ANNJOO 3.90 4.40 Buy 2,009 1.30 45.3 49.2 8.6 7.9 5.6 6.7 3.98 -2.0 2.14 82.2 1.0 CHINHIN 1.19 1.49 Buy 662 1.13 12.4 12.0 9.6 9.9 4.2 5.0 1.49 -20.1 0.86 38.4 -1.7 ENGTEX 1.09 1.38 Buy 464 0.67 14.2 16.1 7.7 6.8 3.8 5.0 1.52 -28.3 1.07 1.9 -0.9 CARLSBG 15.18 18.06 Buy 4,670 0.76 86.2 88.7 17.6 17.1 5.7 5.8 16.00 -5.1 13.90 9.2 -0.8 HEIM 19.20 19.14 Buy 5,800 0.43 84.0 88.3 22.9 21.7 3.9 4.1 19.58 -1.9 15.78 21.7 1.6 AEON 1.66 1.97 Sell 2,331 0.42 6.7 7.7 24.8 21.6 2.4 2.7 2.70 -38.5 1.64 1.2 -5.7 AMWAY 7.35 8.18 Buy 1,208 0.38 43.9 45.2 16.8 16.3 5.2 5.4 8.18 -10.1 7.04 4.4 -0.4 F&N 26.96 28.55 Hold 9,882 0.21 155.7 182.7 17.3 14.8 2.2 2.4 27.02 -0.2 22.64 19.1 -0.1 HUPSENG 1.10 1.25 Hold 880 0.40 5.4 5.6 20.2 19.8 4.1 4.5 1.28 -14.1 1.08 1.9 0.9 JOHOTIN 1.23 1.70 Buy 382 0.75 12.5 12.6 9.9 9.8 4.1 4.4 1.76 -30.1 1.16 6.0 1.7 NESTLE 102.00 120.50 Buy 23,919 0.41 330.1 373.8 30.9 27.3 2.9 3.3 103.20 -1.2 74.12 37.6 -1.2 PADINI 5.31 4.67 Sell 3,493 0.78 27.0 30.0 19.7 17.7 2.4 2.4 5.50 -3.5 2.26 134.9 0.6 POHUAT 1.75 2.37 Buy 384 0.66 25.3 25.5 6.9 6.9 4.6 4.6 2.07 -15.4 1.65 6.0 -2.2 QL 4.44 3.26 Sell 7,204 0.27 12.8 14.7 34.6 30.1 1.0 1.1 4.44 0.0 3.26 36.4 2.1 SIGN 0.70 0.92 Buy 159 0.98 6.9 9.2 10.0 7.6 3.6 5.0 1.07 -35.0 0.69 0.7 -1.4 38.02 52.08 Buy 10,856 1.39 187.4 175.4 20.3 21.7 5.3 5.3 51.04 -25.5 34.06 11.6 -5.0 GENTING 9.37 11.53 Buy 35,845 1.53 54.4 59.8 17.2 15.7 1.7 1.7 10.00 -6.3 7.86 19.3 1.8 GENM 5.80 6.51 Buy 32,877 1.54 27.0 30.6 21.5 18.9 1.6 1.7 6.38 -9.1 4.51 28.6 3.0 2.29 3.34 Buy 3,085 0.80 21.5 26.0 10.6 8.8 7.0 7.9 3.00 -23.7 2.23 2.7 2.2 CCMDBIO 2.64 2.70 Buy 736 0.76 15.0 16.1 17.6 16.4 3.8 3.9 2.65 -0.4 1.90 38.9 4.3 IHH 5.88 6.40 Buy 48,446 0.72 11.9 15.0 49.5 39.3 0.5 0.6 6.45 -8.8 5.42 8.5 0.3 KPJ 0.98 1.12 Buy 4,179 0.45 3.8 4.2 25.9 23.3 2.1 2.3 1.14 -14.0 0.90 8.9 1.0 HARTA 10.40 7.30 Sell 17,190 0.90 25.8 30.5 40.3 34.1 1.1 1.3 11.40 -8.8 4.53 129.6 -2.6 KOSSAN 8.10 8.80 Buy 5,180 0.08 38.3 43.0 21.2 18.8 2.4 2.7 8.50 -4.7 5.62 44.1 -0.1 SUPERMX 1.97 1.80 Sell 1,292 0.41 15.3 17.9 12.9 11.0 2.7 3.1 2.18 -9.6 1.69 16.6 -1.5 TOPGLOV 7.90 7.00 Sell 9,916 0.00 33.7 36.4 23.4 21.7 2.1 2.3 8.19 -3.5 4.56 73.2 -1.1 KAREX 1.28 1.00 Sell 1,283 0.65 2.8 5.2 46.3 24.6 0.5 1.0 2.52 -49.2 1.20 6.7 -1.5 SCIENTX 8.82 9.84 Buy 4,266 0.33 68.2 74.9 12.9 11.8 2.4 2.9 9.85 -10.5 6.69 31.8 1.8 SKPRES 2.19 2.20 Hold 2,738 0.66 10.4 14.8 21.1 14.8 2.4 3.4 2.32 -5.6 1.24 76.6 -3.9 ASTRO 2.69 3.10 Buy 14,025 1.06 14.0 13.7 19.3 19.7 4.8 5.0 2.94 -8.5 2.45 9.8 1.5 MEDIA PRIMA 0.72 0.45 Sell 793 1.13 -3.8 -1.7 na na 0.0 0.0 1.28 -44.1 0.58 23.3 -5.9 STAR 1.49 1.25 Sell 1,099 1.17 6.7 6.7 22.2 22.2 8.1 8.1 2.22 -32.8 1.31 13.7 -9.7 Building Materials CONSUMER Brewery Retail Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves INDUSTRIAL MEDIA
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.54 0.72 Buy 948 1.28 4.2 4.5 12.9 11.9 1.9 1.9 0.69 -21.7 0.27 103.8 LCTITAN 4.91 6.66 Buy 11,160 na 63.4 68.2 7.7 7.2 5.1 5.5 6.53 -24.8 4.14 18.6 11.3 4.5 MHB 0.82 0.78 Sell 1,312 1.76 -0.5 0.3 na 241.6 0.0 0.0 1.16 -29.3 0.63 31.2 -0.6 MISC 7.35 6.56 Sell 32,809 1.11 46.8 52.3 15.7 14.0 4.1 4.1 7.90 -7.0 6.89 6.7 -0.9 PANTECH 0.65 0.69 Sell 480 1.11 6.1 6.8 10.5 9.4 4.3 4.8 0.74 -12.8 0.45 43.3 0.0 PCHEM 7.95 8.05 Hold 63,600 1.07 49.8 52.6 16.0 15.1 2.8 2.9 8.04 -1.1 6.80 16.9 3.2 SAPNRG 0.69 1.25 Buy 4,135 2.38 -6.5 -4.9 na na 0.0 0.0 2.10 -67.1 0.67 3.8 -2.8 SERBADK 3.34 3.40 Hold 4,459 na 25.7 27.8 13.0 12.0 2.3 2.5 3.38 -1.2 1.51 121.2 3.1 UMWOG 0.33 0.51 Buy 2,711 1.74 0.4 1.2 81.7 26.6 0.0 0.0 0.92 -64.2 0.27 22.2 8.2 UZMA 1.29 1.56 Hold 413 1.01 13.2 14.4 9.8 8.9 0.0 0.0 1.98 -34.8 1.26 2.4 0.8 FGV 1.86 2.01 Hold 6,786 1.68 3.7 4.5 50.2 40.9 2.7 2.7 2.18 -14.7 1.51 23.2 10.1 IJMPLNT 2.75 2.69 Sell 2,422 0.24 9.1 12.5 30.1 21.9 2.9 3.3 3.60 -23.6 2.70 1.9 0.4 IOICORP 4.53 4.12 Sell 28,466 1.14 21.0 21.8 21.5 20.7 3.5 3.8 4.81 -5.8 4.31 5.1 -0.2 PLANTATIONS KFIMA 1.60 1.89 Buy 452 0.52 13.3 14.5 12.0 11.0 5.6 5.6 1.96 -18.4 1.56 2.6 1.9 KLK 24.80 26.18 Hold 26,411 0.81 120.7 126.3 20.5 19.6 2.4 2.5 25.50 -2.7 23.00 7.8 -0.8 -8.3 SIMEPLT 5.50 6.25 Buy 37,405 na 21.0 22.1 26.1 24.9 2.5 2.7 6.00 -8.3 4.58 20.1 TSH 1.66 2.10 Buy 2,292 0.70 9.3 9.6 17.8 17.3 1.4 1.5 1.94 -14.4 1.56 6.4 0.6 UMCCA 6.59 6.73 Sell 1,381 0.42 22.8 34.8 28.9 18.9 2.6 2.7 7.08 -6.9 5.76 14.4 1.2 GLOMAC 0.61 0.50 Sell 441 0.69 3.0 4.4 20.6 13.8 3.3 3.3 0.75 -18.1 0.58 5.2 0.0 HUAYANG 0.61 0.59 Sell 215 0.85 1.8 3.4 33.3 17.9 0.8 0.8 1.21 -49.6 0.60 2.5 0.0 IBRACO 0.82 0.92 Hold 405 na 9.1 12.4 8.9 6.5 4.9 6.1 1.02 -20.1 0.76 7.9 0.0 IOIPG 1.95 2.02 Hold 10,737 0.74 16.5 16.3 11.8 12.0 3.1 3.1 2.22 -12.2 1.79 8.9 5.4 MAHSING 1.49 1.69 Buy 3,615 0.87 13.0 12.6 11.4 11.9 4.4 4.4 1.64 -9.1 1.38 8.0 2.8 SIMEPROP 1.52 1.54 Buy 10,337 na 9.2 9.1 16.5 16.7 1.3 1.3 1.78 -14.6 1.04 46.2 -14.6 SNTORIA 0.69 0.76 Buy 388 0.28 8.3 8.6 8.3 8.0 1.5 1.5 0.91 -24.7 0.60 14.2 -1.4 PROPERTY Note: SNTORIA proposed bonus issue of warrants & right issue of shares. For more details please refer to SPB 4.88 5.28 Hold 1,677 0.70 21.2 26.1 23.1 18.7 2.5 2.5 5.50 -11.3 4.32 12.9 -0.4 SPSETIA 3.38 3.77 Buy 10,223 1.08 21.3 21.9 15.9 15.5 3.6 3.6 4.38 -22.9 3.04 11.2 -15.5 SUNWAY 1.78 1.74 Hold 8,715 0.74 11.9 12.6 15.0 14.1 2.8 3.4 1.96 -9.1 1.27 40.3 9.2 SUNREIT 1.71 1.87 Hold 5,036 0.88 10.0 10.7 17.0 16.0 5.9 6.2 1.90 -10.0 1.64 4.3 -10.0 CMMT 1.44 1.72 Buy 2,934 0.83 8.6 8.9 16.7 16.2 6.2 6.4 1.83 -21.3 1.39 3.6 -21.3 REIT POWER & UTILITIES MALAKOF 0.93 1.16 Buy 4,648 0.82 6.0 6.8 15.5 13.7 7.5 7.5 1.39 -33.1 0.86 8.1 -5.1 PETDAG 24.50 22.08 Sell 24,340 0.44 105.1 105.7 23.3 23.2 3.2 3.2 25.70 -4.7 21.00 16.7 1.0 PETGAS 17.94 19.10 Buy 35,498 0.93 98.8 99.5 18.2 18.0 3.8 3.9 21.76 -17.6 15.82 13.4 2.6 TENAGA 15.30 17.38 Buy 86,690 0.69 129.9 127.9 11.8 12.0 3.0 3.0 15.68 -2.4 13.00 17.7 0.3 YTLPOWR 1.31 1.17 Sell 10,385 0.86 9.7 10.1 13.6 13.0 3.8 3.8 1.50 -12.7 1.11 18.0 1.6 -1.3 TELECOMMUNICATIONS AXIATA 5.42 5.75 Hold 49,040 1.33 16.0 19.5 33.9 27.7 1.5 2.9 5.49 -1.3 4.24 27.8 DIGI 4.88 5.20 Buy 37,942 0.81 20.0 20.6 24.4 23.6 4.1 4.2 5.19 -6.0 4.36 11.9 -4.3 MAXIS 5.95 6.10 Hold 46,473 0.71 26.2 25.7 22.7 23.1 3.4 3.4 6.60 -9.8 5.48 8.6 -1.0 TM 6.15 7.20 Buy 23,111 0.54 23.2 24.9 26.5 24.7 3.4 3.6 6.69 -8.1 5.85 5.1 -2.4 ELSOFT 2.70 2.70 Hold 743 0.70 15.0 15.7 18.0 17.2 3.9 4.1 2.95 -8.5 1.36 97.9 0.0 IRIS 0.20 0.25 Buy 494 1.91 0.6 0.7 36.2 30.0 0.0 0.0 0.22 -9.1 0.11 81.8 8.1 INARI 3.58 3.35 Hold 7,345 0.94 14.2 15.9 25.2 22.5 2.8 3.1 3.60 -0.6 1.66 115.5 5.3 MPI 12.46 12.95 Hold 2,478 0.67 105.5 121.2 11.8 10.3 2.6 2.6 14.52 -14.2 7.38 68.8 -1.3 UNISEM 3.56 3.25 Sell 2,612 1.10 27.1 28.7 13.1 12.4 3.4 3.4 4.25 -16.2 2.34 52.1 -2.5 TECHNOLOGY Semiconductor & Electronics TRANSPORTATION Airlines AIRASIA 3.41 3.83 Buy 11,396 1.25 38.3 39.8 8.9 8.6 1.5 1.8 3.59 -5.0 2.16 57.9 1.8 AIRPORT 8.74 8.47 Sell 14,501 1.34 19.7 20.1 44.3 43.4 1.1 1.4 9.45 -7.5 5.98 46.2 -0.6 Freight & Tankers PTRANS 0.30 0.44 Buy 371 na 2.3 3.6 12.9 8.3 2.4 3.6 0.38 -22.7 0.14 109.4 5.4 TNLOGIS 1.33 1.80 Buy 607 1.23 13.6 14.0 9.8 9.5 3.8 3.8 1.83 -27.5 1.29 3.1 -0.7 WPRTS 3.75 4.02 Hold 12,788 0.81 15.5 20.0 24.1 18.8 3.1 4.0 4.35 -13.8 3.34 12.3 1.4 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) Recom Market Cap. (S$m) Beta EPS (cent) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 25.88 23.30 Sell 66,192 1.25 189.1 214.6 13.7 12.1 2.3 2.3 25.9 -0.1 17.28 49.8 OCBC 12.70 13.50 Buy 53,169 1.21 104.1 110.6 12.2 11.5 6.7 7.7 12.7 0.0 9.00 41.1 4.1 2.5 UOB 26.90 26.90 Hold 44,736 1.06 215.4 229.3 12.5 12.5 2.6 2.6 27.0 -0.3 20.38 32.0 1.7 PLANTATIONS WILMAR 3.16 3.63 Hold 20,219 0.86 29.9 31.8 10.6 9.9 2.5 2.8 4.0 -21.0 3.06 3.3 2.3 IFAR 0.39 0.53 Hold 559 1.00 5.2 5.7 7.5 6.8 3.3 3.6 0.6 -32.8 0.37 6.8 0.0 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
12. SECTOR UPDATE Thursday , January 04, 2018 FBMKLCI: 1,792.79 Kelli123THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Semiconductor Sector Neutral Growth Momentum Sustains (Maintained) Wilson Loo, CFA Tel: +603-2167 9606 wilsonloo@ta.com.my www.taonline.com.my Record High Sales in November 2017 Global semiconductor sales in November 2017 was at its highest at US$37.7bn (+21.5% YoY, +1.6% MoM). Of note, growth has been uninterrupted for 9 and 16 consecutive months on a MoM and YoY basis respectively. This was again driven by memory products as well as other major product categories, which recorded growth on a MoM and YoY basis. If the momentum sustains, it would be the first time global semiconductor sales reach the US$400bn mark. YTD’s growth was at 21.6% YoY and this was largely in line with WSTS’s forecast for 2017 at 20.6% YoY, the largest to be attained since 2010. Figure 1: Global Chip Sales US$bn 40.0 Worldwide Sales (LHS) % 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 -10.0 -20.0 -30.0 -40.0 YoY Growth (RHS) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 Mar-17 Jul-15 May-16 Sep-14 Jan-13 Nov-13 Mar-12 Jul-10 May-11 Sep-09 Nov-08 Jan-08 Mar-07 May-06 Jul-05 Sep-04 Nov-03 Jan-03 0.0 Source: SIA, TA Securities Broad Based Growth Across All Regions Broad based double-digit growth continued to be observed across all regions. The strongest was recorded by the Americas (+40.2% YoY) and this was followed by Europe (+18.8% YoY), China (+18.5% YoY), Asia Pacific/All Others (+16.2% YoY) and Japan (+10.6% YoY). Figure 3: Breakdown of Sales by Region (%) Figure 2: Growth in Sales by Region (% YoY) 100% % Americas 100.0 Europe Japan Asia Pacific 90% Worldwide 80% 80.0 70% 60.0 60% 50% 40.0 40% 20.0 30% 0.0 20% 10% -20.0 Sep-17 Jan-17 May-16 Jan-15 Sep-15 Sep-13 May-14 Jan-13 Sep-11 May-12 Jan-11 May-10 Jan-09 Sep-09 May-08 Jan-07 Americas Europe Jan-17 Sep-17 May-16 Jan-15 Sep-15 May-14 Jan-13 Sep-13 May-12 Jan-11 Japan Sep-11 May-10 Jan-09 Sep-09 May-08 Jan-07 Sep-07 May-06 Jan-05 Sep-05 May-04 Jan-03 Source: SIA, TA Securities Sep-07 May-06 Jan-05 Sep-05 May-04 Jan-03 Sep-03 -60.0 Sep-03 0% -40.0 Asia Pacific Source: SIA, TA Securities Page 1 of 3
13. 4-Jan-18 Billings Improve After 4 Consecutive Months of Declines Encouragingly , after four consecutive months of declines, billings improved by 1.6% MoM to US$2,052mn (+27.2% YoY). Meanwhile on a YTD basis, billings growth remains impressive at 40.1% YoY, keeping 2017’s billings on course to reach record highs. SEMI expects the momentum to sustain into 2018 as new fabs in China begin equipping. Figure 4: Billings (US$mn) US$mn 2,500 Billings (LHS) % 300.0 YoY Growth (RHS) 250.0 2,000 200.0 150.0 1,500 100.0 1,000 50.0 0.0 500 -50.0 Oct-17 Jan-17 Apr-16 Jul-15 Jan-14 Oct-14 Jul-12 Apr-13 Jan-11 Oct-11 Jul-09 Apr-10 Jan-08 Oct-08 Jul-06 Apr-07 Jan-05 -100.0 Oct-05 0 Source: SEMI, TA Securities Neutral We are maintaining our Neutral stance on the sector. The sector still offers room for earnings growth but our concerns in 2018 lie with its rich valuations and downside risks from the strengthening Ringgit. We have HOLD recommendations on Inari, MPI and Elsoft and SELL recommendation on Unisem. Peers Comparison EPS EPS Growth PER Price TP Mkt Cap CY18 CY19 CY18 CY19 CY18 CY19 (RM) (RM) RM mn (sen) (sen) (%) (%) (x) (x) Inari Amertron 3.58 3.35 HOLD 7,345.3 15.2 16.9 25.8 10.7 23.5 21.2 Unisem 3.56 3.25 SELL 2,612.4 19.0 20.3 -16.0 7.1 18.8 17.5 12.46 12.95 HOLD 2,478.2 79.2 91.7 -0.2 15.9 15.7 13.6 2.70 2.70 HOLD 742.8 13.2 15.0 18.7 13.9 20.5 18.0 27.9 31.5 12.2 11.2 20.9 18.9 CY19 CY18 CY19 CY18 CY19 MPI Elsoft Weighted average NTA/Share P/NTA CY18 CY19 CY18 ROE CY19 CY18 DPS Div yield (RM) (RM) (x) (x) (%) (%) (sen) (sen) (%) (%) Inari Amertron 0.5 0.5 7.2 6.5 31.7 31.9 10.7 11.8 3.0 3.3 Unisem 2.1 2.2 1.7 1.6 9.2 9.5 12.0 12.0 3.4 3.4 MPI 6.0 6.6 2.1 1.9 13.7 14.5 32.0 32.0 2.6 2.6 Elsoft 0.4 0.5 28.3 25.3 32.3 32.9 9.4 10.7 3.5 4.0 Weighted average 1.9 2.0 6.3 5.7 23.9 24.3 14.9 15.6 3.0 3.2 Page 2 of 3
14. 4-Jan-18 (TH I S P A GE IS IN TE N TI ON AL L Y L E F T B L AN K ) 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 Thursday, January 04, 2018, the analyst, Wilson Loo Jia Chern, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3
15. COMPANY UPDATE Thursday , January 04, 2018 FBMKLCI: 1,792.79 Sector: Transportation THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM4.02 (+7.3%) Westports Holdings Berhad Last Traded: RM3.75 Throughput Growth to Resume in FY18 Tan Kam Meng, CFA Tel: +603-2167 9605 HOLD kmtan@ta.com.my Key takeaways Key takeaways from a conference call yesterday are as follows: 2017 container volume declined 9.3% to 9.02mn TEUs; No major changes in Westports’ services to Ocean Alliance; Partial provisions for bill of demand in 4Q17; and 2018 effective tax rate to increase to 24%, different from previous guidance. 2017 container volume declined 9.3% to 9.02mn TEUs Westports announced that it has achieved a container throughput of 9.02mn TEUs, representing a decline of 9.3% YoY, for FY17. The decline was mainly driven by 16.0% contraction in transhipment volume to approximately 6.2mn TEUs due to migration of shipments to PSA post formation of Ocean Alliance. The impact was partly mitigated by 10% growth in gateway volume to approximately 2.8mn TEUs for FY17. The contraction of 9.3% came in higher than our projections of 6.7% and we attribute this to higher-than-expected decline in transhipment volume. No major changes in Westports’ services to Ocean Alliance Recently, CMA CGM announced that Ocean Alliance has unveiled its Day Two Project, which will feature around 340 containerships deployed on 41 services, i.e.: 20 Transpacific services, 6 Asia-Europe services, 4 Asia-Mediterranean services, 5 Asia-Meddle East services, and 2 Asia-Red Sea services. The services will begin from Apr-18 onwards with an estimated carrying capacity of around 3.6mn TEUs. According to management, there will be no major changes in Day Two Project versus Day One Project in terms of port of call in Port Kelang. The company will continue to provide 12 weekly services on 6 trade lanes (see Appendix A). www.taonline.com.my Share Information Bloomberg Code WPRTS MK Stock Code WPRTS Listing Main Market 3410.0 Share Cap (mn) 12787.5 Market Cap (RMmn) 0.1 Par Value 4.35/3.34 52-wk Hi/Lo (RM) 1961.0 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) 23.7 0.8 Beta Major Shareholders (%) Tan Sri Datuk G.Gnanalingam & family - 42.4% South Port Inv - 23.6% EPF - 10.4% Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 12.2 (7.6) 655.6 529.7 589.8 575.1 111.2 92.1 Buy (Downgraded) Financial Indicators Net Gearing (%) CFPs (sen) P/CFPS (x) ROE (%) NTA/Share (RM) Price/NTA (x) Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth FY17 45.6 9.6 39.3 30.5 0.7 5.7 FY18 34.5 21.6 17.3 23.0 0.7 5.4 WPRTS 4.7 1.9 2.7 (12.6) FBM KLCI 4.6 1.8 1.7 8.8 (12-Mth) Share Price relative to the FBMKLCI As such, management only expects an organic growth of 2-3% for FY18 total throughput. In specific, management expects a weak start with 10% YoY contraction in 1Q18 volume due to high-base effect. This would then be followed by a flat 2Q18 throughput performance. 3Q-4Q18 would see positive growth in throughput to cover the shortfall in 1H18 and provide some growth to FY18. Partial provisions for bill of demand Westports has received several bills of demands, which were dated between 17 July 2017 and 29 Sept 2017, totalling RM59.5mn from the Royal Malaysian Customs. The demands included time-barred assessments for the years 2008 Source: Bloomberg Page 1 of 4
16. 4-Jan-18 to 2011 , import duty remittance for purchases of equipment and GST for purchases made after Apr-15. Westports has sought legal opinion and believe it has reasonable grounds to challenge some of the demands worth RM25mn. However, this would mean the company would need to make partial provisions for the bill of demand in 4Q17. 2018 effective tax rate to increase to 24%, different from previous guidance Underpinning some unutilised investment tax allowance, which can be carried forward to FY18, management guided that this will result in 2017 effective tax rate to be lower than 5% and 2018 effective tax rate to revert to statutory rate at 24%. This was different from the previous guidance of app. 15% for both FY17 and FY18 due to accounting treatment on tax payable and deferred tax. Besides, Westports announced that the company started the transition towards MFRS15 last year in Jan-17 and will be in full compliance with the new requirement from 2018 onwards. The implication of this is that future revenue would be lower than before as it would be netted off against those discounts, rebates, refunds or credits given to contract customers. However, the bottomline impact is negligible. Forecast We adjust our FY17 earnings projections higher by 12.2% to factor in the total throughput of 9.02mn TEUs for 2017 and the lower effective tax rate of 5% (vs. previous assumption of 14.7%). We have not incorporated the provisions for bill of demands into our forecast. For FY18, we raise the effective tax rate to 24% (vs. previous assumption of 15.1%) and assume a throughput growth of 3.0% and this will throw off our FY18 earnings projections by RM42.8mn or 7.5%. Valuation In summary, we do not think the announcement of lower throughput in 2017 would spring any negative surprise to the market as the management has already forewarned. Likewise, we believe the market would be calm about the bill of demands given that the provisions are non-recurring. Valuation wise, we cut Westports’ DDM valuation to RM4.02 (from RM4.06 previously) after rolling forward our valuation base year or D1 to 2018, based on an unchanged CAPM rate of 6.5%. We downgrade Westports to HOLD from buy. Page 2 of 4
17. 4-Jan-18 Appendix A : Westports is providing 12 services on 6 trades Pacific Southwest services: SEA2: (AWE5)-Port Kelang-Singapore-Jakarta-Laem Chabang-Cai Mep- Los Angeles -Oakland-Hong Kong –Cai Mep-SingaporePort Kelang-Colombo-(AWE5) Asia – East Coast North America and US Gulf services: AWE5: (SEA2)-Hong Kong-Cai Mep-Singapore-Port Kelang-Colombo-Halifax-New York- Norfolk- Savannah-Charleston- Port Kelang-Singapore-Jakarta-Laem Chabang-Cai Mep -(SEA2) Asia – Europe services: AEU2: Tianjin-Pusan-Ningbo-Shanghai-Yantian-Singapore–SUEZ Canal-Algeciras-Southampton-Dunkirk-Hamburg-RotterdamSouthampton -Le Havre-SUEZ Canal-Khor Fakkan-Port Kelang-Xiamen-Tianjin AEU7: Ningbo-Shanghai-Hong Kong-Nansha-Shekou-Tanjung Pelepas-Port Kelang-SUEZ Canal-Piraeus-Antwerp-HamburgRotterdam- Felixstowe-Zeebrugge-Piraeus-SUEZ Canal-Tanjung Pelepas-Singapore-Hong Kong-Ningbo Asia – Mediterranean services: AEM2: Qingdao-Pusan-Shanghai-Ningbo-Nansha-Yantian-Singapore-SUEZ Canal-Malta-Barcelona Valencia-Fos-Genoa-Malta Beirut-SUEZ Canal-Jeddah-Jebel Ali-Port Kelang-Xiamen-Qingdao AEM3: Pusan-Shanghai-Ningbo-Kaohsiung-Xiamen-Shekou-Singapore-SUEZ Canal-Port Said -Beirut-Piraeus-Istanbul Evyap (Izmit)-Istanbul Ambarli (Avcilar)-Constanza-Odessa-Istanbul Ambarli (Avcilar) -Mersin-Port Said-SUEZ Canal-Jeddah-Port Kelang-Pusan AEM6: Shanghai-Ningbo-Pusan-Shekou-Singapore-SUEZ Canal-Port Said-Malta-Koper-Trieste-Rijeka-Venice-Koper -Malta Damietta -SUEZ Canal-Jeddah-Port Kelang-Shekou-Shanghai Asia – Middle East services: MEX2: Lianyungang-Qingdao-Ningbo-Hong Kong –Shekou-Singapore-Jebel Ali-Bahrain-Dammam-Abu Dhabi-Port KelangNansha-Lianyungang MEX4: Tianjin-Dalian-Pusan-Shanghai-Ningbo-Shekou-Singapore-Khor Al Fakkan-Jebel Ali- Sohar -Port Kelang–SingaporeShekou-Tianjin MEX5: Shanghai-Ningbo-Taipei-Shekou-Tanjung Pelepas-Port Kelang-Jebel Ali-Bandar Abbas-Port Kelang-Hong Kong-Shanghai Asia – Red Sea services: RES1: Tianjin-Qingdao-Pusan-Ningbo-Nansha-Shekou-Tanjung Pelepas-Singapore-Jeddah-Sokhna-Aqaba-Jeddah-Port KelangSingapore-Ningbo-Tianjin Page 3 of 4
18. 4-Jan-18 F inancian s tatement (RM'mn) 2015 F Y E Dec 31 Revenue* 1578.3 COGS (799.4) Gros s profit 778.9 EBITDA 885.6 Deprecia tion (91.4) (80.4) Amortis a tion E B IT 713.9 Net fina nce cos t (63.7) EI (6.9) P BT 650.1 Adj PBT 657.0 (145.3) Ta x Net profit 504.9 Adj net profit 511.7 E P S (s en) 15.2 DP S (s en) 11.1 * E xcluding cons truction revenue 2016 1804.3 (813.0) 991.3 2017F 1816.2 (805.8) 1010.4 2018F 1917.8 (852.6) 1065.1 2019F 2144.6 (897.9) 1246.7 987.1 (100.4) (67.6) 819.0 (64.2) (2.2) 754.8 757.0 (117.8) 637.0 639.2 18.7 14.0 982.6 (111.2) (72.9) 798.6 (108.5) 0.0 690.1 690.1 (34.5) 655.6 655.6 19.2 14.4 1036.5 (125.0) (89.2) 822.3 (125.6) 0.0 696.8 696.8 (167.1) 529.7 529.7 15.5 11.6 1217.2 (125.4) (87.0) 1004.8 (108.9) 0.0 896.0 896.0 (214.9) 681.1 681.1 20.0 15.0 Cas h F low (RM'mn) FYE Dec 31 P BT Non- ca s h item Chg in working ca pita l Ta x Others CFO 2015 638.6 170.0 (215.1) (146.9) 62.5 509.1 2016 710.2 164.9 21.8 (102.0) 143.7 938.7 2017F 689.5 180.8 218.4 (34.5) 108.5 1162.7 2018F 696.1 210.8 8.3 (167.1) 125.6 873.8 2019F 895.3 209.0 18.6 (214.9) 108.9 1016.9 Ca pex Others CFI (250.0) 14.9 (235.1) (750.0) 388.9 (361.1) (851.0) 14.0 (837.0) (150.0) 14.4 (135.6) (150.0) 31.1 (118.9) Net B orrowing /R pmt Dividend P a id Others CFF 0.0 (368.8) (77.4) (446.2) 0.0 (456.2) (98.2) (554.4) 300.0 (491.2) (122.5) (313.7) 300.0 (396.8) (140.0) (236.8) 250.0 (510.3) (140.0) (400.3) 2015 2.5 6.6 2016 2.6 7.4 2017F 2.8 6.2 2018F 2.9 6.4 2019F 3.0 6.7 Key A s s umptions Ga tewa y (mn TE Us ) Tra ns hipment (mn TE Us ) Balance S heet (RM'mn) FYE Dec 31 PPE Conces s ion a s s ets LT As s ets 2015 1369.3 1920.8 3290.0 2016 1515.4 2074.1 3589.5 2017F 1704.2 2555.5 4259.7 2018F 1709.2 2489.6 4198.9 2019F 1683.9 2456.0 4139.9 Tra de & other receiva bles Ca s h & Ca s h equiva lent Other ST As s ets 240.2 396.2 103.2 739.5 339.1 420.5 0.0 759.6 298.6 432.5 0.0 731.0 315.2 933.9 0.0 1249.1 352.5 1431.6 0.0 1784.2 Tota l As s ets 4029.6 4349.1 4990.7 5448.0 5924.1 Tra de a nd other pa ya bles S T B orrowing s Others ST Liabilities 149.3 0.0 164.5 313.8 269.9 0.0 205.7 475.6 447.8 300.0 205.7 953.5 472.9 300.0 205.7 978.6 528.8 300.0 205.7 1034.5 LT B orrowing s Others LT Liabilities 1150.0 667.7 1817.7 1150.0 654.5 1804.5 1150.0 654.5 1804.5 1450.0 654.5 2104.5 1700.0 654.5 2354.5 S ha re Ca p R es erves Shareholder's Funds 341.0 1557.1 1898.1 341.0 1727.9 2068.9 341.0 1891.7 2232.7 341.0 2023.9 2364.9 341.0 2194.0 2535.0 Liabilities + Equities Ratio E P S Growth (% ) P E R (x) Div Yield (% ) Net ca s h (R Mm) Net g ea ring (x) R OE (% ) R OA (% ) NTA (R M) P /NTA (x) E V/E B ITDA (x) 4029.6 4349.1 4990.7 5448.0 5924.1 2015 (3.7) 24.7 3.0 (753.8) 0.4 27.1 12.8 (0.0) nm 15.3 2016 23.2 20.0 3.7 (729.5) 0.4 30.7 15.3 (0.0) nm 13.7 2017F 2.6 19.5 3.8 (1017.5) 0.5 30.5 14.0 (0.1) nm 14.0 2018F (19.2) 24.1 3.1 (816.1) 0.3 23.0 10.1 (0.0) nm 13.1 2019F 28.6 18.8 4.0 (568.4) 0.2 27.8 12.0 0.0 nm 11.0 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Thursday, January 04, 2018, the analyst, Tan Kam Meng, 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
19. Thursday , 04 January, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s P ic ks 2. D ai l y St o ck S cr een Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
20. Technical View Thursday , January 04, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,792.79 (+10.09, +0.57%) Chartist: Stephen Soo Close Name FBMKLCI 3/Jan 1792.79 Tel: +603-2167-9607 Change High Low 10.09 1,795.87 1,785.21 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 1,699.47 1,746.62 1,793.77 65.93 1,763.70 1,737.59 1,738.58 36.74 12.28 34.42 24.46 13.44 7.95 5.494 BUY MACD Recent Signal DMI MACD Signal Change BUY - - AFFIN 2.37 0.03 2.39 2.33 2.26 2.31 2.37 49.49 2.31 2.33 2.40 17.91 23.41 27.34 -5.50 -0.02 -0.03 0.007 SELL BUY - - ABMB 4.06 0.00 4.08 4.04 3.78 3.98 4.19 61.87 4.04 3.89 3.81 27.45 12.33 34.41 15.12 0.08 0.08 0.002 BUY BUY - - AMBANK 4.56 0.11 4.60 4.46 4.03 4.27 4.52 62.20 4.35 4.25 4.28 26.34 12.42 31.63 13.93 0.04 0.02 0.021 BUY BUY - - AXIATA 5.42 0.03 5.42 5.39 5.30 5.37 5.44 53.71 5.39 5.35 5.34 17.15 12.55 27.36 4.60 0.02 0.02 0.006 BUY BUY - - CIMB 6.53 0.03 6.58 6.50 5.81 6.27 6.73 65.55 6.46 6.17 6.16 30.28 9.87 39.49 20.42 0.12 0.09 0.028 BUY BUY - - DIGI 4.88 -0.01 4.93 4.88 4.59 4.79 4.98 55.18 4.84 4.73 4.79 28.23 13.53 24.35 14.70 0.04 0.02 0.024 BUY BUY - - GAMUDA 4.94 0.04 4.96 4.85 4.62 4.83 5.04 52.86 4.92 4.79 4.87 21.85 18.48 20.48 3.37 0.03 0.01 0.020 BUY BUY - - GENTING 9.37 0.06 9.50 9.30 8.63 8.99 9.35 57.89 9.08 9.02 9.09 24.11 17.98 18.41 6.13 0.03 -0.02 0.051 BUY BUY - - GENM 5.80 0.02 5.82 5.75 5.04 5.46 5.88 67.50 5.57 5.33 5.22 31.52 16.31 22.25 15.21 0.13 0.11 0.017 BUY BUY - - IHH 5.88 -0.02 5.94 5.81 5.53 5.76 5.99 63.04 5.86 5.72 5.70 20.12 17.08 16.14 3.04 0.06 0.05 0.014 BUY BUY - - IOICORP 4.53 -0.01 4.57 4.52 4.37 4.48 4.58 57.05 4.48 4.47 4.47 19.26 17.16 10.67 2.10 0.02 0.00 0.012 BUY BUY - - MALAKOFF 0.93 0.04 0.98 0.90 0.86 0.91 0.95 43.40 0.91 0.93 0.96 22.67 11.24 26.37 11.43 -0.03 -0.03 (0.005) BUY SELL - - MAXIS 5.95 -0.05 6.03 5.95 5.86 5.95 6.03 60.53 5.97 5.94 5.93 9.83 25.85 42.25 -16.02 0.02 0.02 0.007 SELL BUY - - MAYBANK 9.78 0.12 9.78 9.66 9.13 9.44 9.74 65.18 9.55 9.36 9.31 35.97 7.07 46.24 28.90 0.10 0.07 0.030 BUY BUY - - MBSB 1.15 0.02 1.18 1.12 1.00 1.05 1.10 66.68 1.05 1.07 1.09 31.32 10.64 17.75 20.69 -0.01 -0.02 0.009 BUY BUY - - RHBBANK 5.14 0.08 5.17 5.03 4.71 4.92 5.14 58.03 4.98 4.90 4.92 23.16 16.83 15.91 6.33 0.03 0.02 0.013 BUY BUY - - SIME 2.41 0.19 2.47 2.21 2.02 2.16 2.30 59.90 2.15 2.13 2.11 28.68 15.18 23.33 13.50 0.03 0.02 0.011 BUY BUY - - 15.30 0.08 15.42 15.22 14.81 15.31 15.82 52.38 15.11 15.21 15.02 27.98 19.15 30.21 8.83 0.03 0.05 (0.022) BUY SELL - - TM 6.15 -0.02 6.21 6.14 5.89 6.13 6.38 51.25 6.18 6.09 6.11 27.56 9.35 31.00 18.21 0.04 0.02 0.014 BUY BUY - - WPRTS 3.75 -0.04 3.80 3.66 3.35 3.58 3.80 59.79 3.65 3.57 3.62 24.12 11.17 19.89 12.95 0.04 0.01 0.029 BUY BUY - - AIRASIA 3.41 0.07 3.44 3.34 3.14 3.27 3.40 57.66 3.32 3.23 3.26 20.15 10.77 24.52 9.38 0.03 0.02 0.009 BUY BUY - - AIRASIA X 0.37 0.01 0.38 0.36 0.32 0.33 0.35 58.01 0.33 0.34 0.36 30.45 15.01 49.77 15.44 -0.01 -0.01 0.003 BUY BUY BUY - ARMADA 0.78 0.02 0.78 0.76 0.73 0.75 0.77 55.59 0.75 0.75 0.75 25.97 13.68 18.84 -7.89 0.00 0.00 0.003 SELL BUY - - TENAGA BINAPURI 0.35 0.01 0.35 0.34 0.34 0.34 0.35 42.99 0.34 0.34 0.35 16.39 24.29 21.12 14.18 0.00 0.00 0.000 BUY BUY - - CMSB 3.85 0.00 3.86 3.80 3.61 3.75 3.89 60.25 3.72 3.67 3.69 33.14 18.96 20.22 10.18 0.03 0.01 0.014 BUY BUY - - DIALOG 2.50 0.00 2.54 2.49 2.40 2.47 2.53 61.11 2.48 2.44 2.37 21.10 10.92 28.73 10.18 0.04 0.04 (0.001) BUY SELL - - ECO WORLD 1.40 0.01 1.44 1.38 1.34 1.44 1.54 38.15 1.40 1.45 1.48 25.31 24.80 23.21 0.51 -0.03 -0.03 (0.005) BUY SELL BUY - EKOVEST 1.02 0.10 1.05 0.93 0.91 0.93 0.95 41.73 0.93 0.94 0.98 21.50 23.23 26.10 -1.74 -0.01 -0.02 0.005 SELL BUY - - GADANG 1.16 0.02 1.19 1.14 1.04 1.08 1.12 59.24 1.08 1.08 1.14 22.38 11.29 30.27 11.09 -0.01 -0.02 0.011 BUY BUY - - HSL 1.45 0.02 1.45 1.42 1.40 1.45 1.49 43.53 1.43 1.46 1.49 19.85 21.07 12.16 -1.22 -0.02 -0.02 0.000 SELL BUY SELL BUY ISKANDAR 1.42 0.00 1.46 1.41 1.20 1.33 1.46 66.73 1.39 1.31 1.32 31.21 5.19 42.10 26.02 0.04 0.02 0.012 BUY BUY - - KIMLUN 2.20 0.00 2.21 2.20 2.20 2.27 2.35 35.73 2.25 2.30 2.31 26.24 42.66 16.21 -16.41 -0.02 -0.02 (0.005) SELL SELL - - KKBE 0.98 0.01 0.99 0.97 0.93 0.99 1.05 50.84 0.97 0.97 0.92 33.92 30.81 31.87 3.12 0.01 0.02 (0.009) BUY SELL - - MUDAJAYA 0.94 0.03 0.97 0.92 0.88 0.92 0.97 39.51 0.92 0.96 1.04 21.36 36.17 40.20 -14.81 -0.03 -0.04 0.009 SELL BUY - - MRCB 1.25 0.09 1.27 1.17 1.01 1.08 1.15 69.41 1.11 1.06 1.04 31.42 12.71 29.44 18.72 0.03 0.02 0.006 BUY BUY - - NAIM 1.20 -0.03 1.22 1.20 0.89 1.09 1.28 59.15 1.13 1.10 1.13 43.49 5.18 37.19 38.31 0.03 0.00 0.035 BUY BUY - - SAPURA ENERGY 0.69 0.02 0.72 0.67 0.47 0.84 1.21 15.43 0.72 1.00 1.19 5.61 49.46 69.98 -43.86 -0.15 -0.16 0.008 SELL BUY - - SUNCON 2.51 0.05 2.51 2.46 2.33 2.40 2.47 59.81 2.42 2.40 2.37 24.25 10.25 18.33 14.00 0.02 0.02 0.008 BUY BUY - - UEMS 1.17 0.07 1.18 1.11 1.00 1.05 1.10 59.78 1.06 1.05 1.06 29.22 12.71 17.78 16.51 0.00 0.00 0.005 BUY BUY - - WASEONG 1.31 0.22 1.36 1.10 1.11 1.15 1.20 40.64 1.14 1.14 1.08 25.07 22.24 49.08 2.83 0.01 0.02 (0.012) BUY SELL - - WCT 1.61 0.00 1.69 1.60 1.43 1.54 1.66 54.54 1.58 1.57 1.59 28.89 12.33 26.10 16.56 0.01 -0.01 0.018 BUY BUY - - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 3