Bursa Malaysia Daily Market Report - 5 July

Transcription

1. Wednesday , 05 July, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Fraser and Neave Berhad: 100Plus Now in All McDonald’s Malaysia Outlets 2. Semiconductor Sector: All Regions On Song Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Wednesday, 05 July 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (04.07.2017) (mil) Main Market 1,297.9 Warrants 149.4 ACE Market 443.2 Bond 5.6 ETF 0.1 Total 1,896.2 Off Market 18.8 Volume +/-chg (RMmn) -5.3 1,684.5 17.4 22.3 131.5 95.7 -10.2 1.7 0.05 0.1 1,804.3 -48.5 19.3 Value +/-chg 37.9 6.7 23.8 -2.3 0.04 -22.6 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP July 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 DESTINI MEXTER BJASSET TAWIN MERCURY MAXIS Up Down 266 370 38 78 40 37 4 1 0 2 348 488 % chg % YTD chg 1,762.08 12,588.54 17,497.32 1,762.00 -6.59 -41.55 8.41 -6.50 -0.37 -0.33 0.05 -0.37 7.33 9.78 18.90 7.73 21,479.27 6,110.06 7,357.23 20,032.35 2,380.52 25,389.01 3,211.17 1,574.11 5,865.36 3,182.80 1,896.53 5,783.82 0.00 0.00 -19.86 -23.45 -13.96 -395.16 -12.29 -5.30 -44.87 -13.11 -8.68 99.33 0.00 0.00 -0.27 -0.12 -0.58 -1.53 -0.38 -0.34 -0.76 -0.41 -0.46 1.75 8.69 13.50 3.00 4.80 17.47 15.40 11.47 2.02 10.74 2.55 -3.69 2.08 Top 10 KLCI Movers Based on Mkt Cap. Off Market (mn) 5.0 4.1 2.0 2.0 2.0 1.2 Value/ Volume 1.30 0.15 0.22 0.31 1.08 0.95 1.02 @ @ @ @ @ @ (RM) 0.69 0.24 0.13 1.26 1.50 5.48 Exchange Rate USD/MYR 4.2981 -0.0062 USD/JPY 113.19 0.1500 EUR/USD 1.135 -0.0023 Counter TENAGA PBBANK IHH CIMB AXIATA MAXIS DIGI PETGAS GENTING MISC Mkt Cap. (RM’mn) 79,792 78,388 58,929 57,120 42,880 42,806 38,875 36,607 35,394 32,764 Chg Vol. (RM) (mn) -0.02 7.48 -0.02 1.85 -0.01 24.46 -0.16 4.57 -0.02 17.96 -0.03 4.66 -0.02 2.97 -0.30 0.48 -0.13 3.02 -0.07 0.67 Commodities Futures Palm Oil (RM/mt) 2,497.00 5.00 Crude Oil ($/Barrel) 47.05 0.00 Gold ($/tr.oz.) 1,219.50 0.00 Stocks fell on Tuesday, led by Petronas blue chips as oil prices eased and regional markets dip on increased geopolitical concerns after North Korea launched a missile which landed in Japanese waters. The KLCI shed 6.59 points to end at the day's low of 1,762.08, off the opening high of 1,768.3, as losers beat gainers 488 to 348 on higher turnover of 1.89bn shares worth RM1.8bn. Given the weak index position which stayed below the 50-day moving average (1,772) and bearish technical momentum, further correction is likely before buying support return to cushion downside. Better support is from the 100-day moving average at 1,749, while immediate resistance will be at 1,772, then 1,782, followed by the recent peak of 1,796, and then the 1,800 psychological level. Positive technical momentum on MRCB supports upside bias towards the upper Bollinger band (RM1.47), with next resistance from the 61.8%FR (RM1.50) and good retracement support from the 38.2%FR (RM1.32). Any weakness on UEM Sunrise shares towards the 50%FR (RM1.18) support should attract buyers looking for oversold rebound towards the 50-day moving average (RM1.26) or 76.4%FR (RM1.28), followed by RM1.32 and the 18/5/17 peak (RM1.36). News Bites • • • • • • • • • • • • • Important Dates TDM - 1:10 Bonus Issue - BI of 150.5m shares. 1 bonus share for every 10 existing shares. Entitlement Date: 03/07/2017. LISTING ON: 04/07/2017. SCC - 1:10 Bonus Issue - BI of 4.3m shares. 1 bonus share for every 10 existing shares. Ex-Date: 06/07/2017. Entitlement Date: 10/07/2017. LISTING ON: 11/07/2017. • • Lotte Chemical Holding Bhd's 524.2mn shares offered to funds at RM6.50 had been fully subscribed. Sime Darby Property Bhd said Battersea Power Station has been awarded Property Company of the Year at the Evening Standard's Business Awards 2017 after beating off strong competition from property heavyweights. Fraser & Neave Holdings Bhd has formed a marketing partnership with McDonald's Malaysia, which will see its 100Plus products made available at all McDonald's outlets from today. Kumpulan Jetson Bhd has received a notification from MCC Overseas (M) Sdn Bhd to rescind the award of a RM919.0mn sub-contract. Majority shareholders of Wing Tai Malaysia Bhd, Wing Tai Holdings Ltd and Wing Tai Investment & Development Pte Ltd, have extended their offer for the shares they do not own in Wing Tai Malaysia up to July 18. Cahya Mata Sarawak Bhd's unit, CMS Roads Sdn Bhd, said the upgrading of the 43.2-kilometre road connecting Miri to Marudi in Sarawak continues to progress ahead of its 30-month schedule, starting Sept 15, 2016. Ranhill Holdings Bhd's unit, Ranhill Capital Sdn Bhd, has acquired a 26% equity in SM Hydro Energy Sdn Bhd and has intention to subsequently purchase the remaining shares to own 100%, and participate in a new power project. Sinmah Capital Bhd is selling four pieces of land, together with 22 broiler farms, a chicken processing plant and a two-storey shophouse, in Batu Pahat, Johor, for a combined RM12.3mn cash. Aeon Credit Service (M) Bhd's 1QFY18 net profit jumped 20.9% YoY to RM75.8mn, partly boosted by bad debt recovery and commission earned from sale of insurance products, and AEON Big loyalty programme processing fees. UEM Edgenta Bhd's wholly-owned unit has been awarded a hospital support services contract from the Ministry of Health, valued at RM75.5mn. Kawan Food Bhd has proposed a bonus issue of 89.9mn new shares on the basis of one bonus share for every three existing shares. Malaysian Resources Corp Berhad has entered into a second supplemental agreement with Gapurna Sdn Bhd's unit Nusa Gapurna Development Sdn Bhd to further vary the term of right of first refusal and call option agreement. Malaysia's central bank said that foreign shareholders of local insurers must honour their commitment in maintaining specified levels of domestic shareholding. Malaysia's economy can grow 5% or more this year, based on the country's first-half performance, said Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah. Federal Reserve officials have indicated there is a strong chance they will announce in September a decision to start shrinking the central bank's portfolio of bonds and other assets, while putting off until December any further interest-rate increase DISCLAIMER The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
3. TA Securities Wednesday , July 05, 2017 FBMKLCI: 1,762.08 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Market View Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my Further Correction Before Buyers Return Stocks fell on Tuesday, led by Petronas blue chips as oil prices eased and regional markets dip on increased geopolitical concerns after North Korea launched a missile which landed in Japanese waters. The KLCI shed 6.59 points to end at the day’s low of 1,762.08, off the opening high of 1,768.3, as losers beat gainers 488 to 348 on higher turnover of 1.89bn shares worth RM1.8bn. Immediate Resistance at 1,772/1,782 Given the weak index position which stayed below the 50-day moving average (1,772) and bearish technical momentum, further correction is likely before buying support return to cushion downside. Better support is from the 100-day moving average at 1,749, while immediate resistance will be at 1,772, then 1,782, followed by the recent peak of 1,796, and then the 1,800 psychological level. Buy on Dip MRCB & UEM Sunrise Positive technical momentum on MRCB supports upside bias towards the upper Bollinger band (RM1.47), with next resistance from the 61.8%FR (RM1.50) and good retracement support from the 38.2%FR (RM1.32). Any weakness on UEM Sunrise shares towards the 50%FR (RM1.18) support should attract buyers looking for oversold rebound towards the 50-day moving average (RM1.26) or 76.4%FR (RM1.28), followed by RM1.32 and the 18/5/17 peak (RM1.36). Asian Markets Lower Following North Korea Missile Test Asian stock markets traded mostly lower on Tuesday as risk appetite took a hit after North Korea test launched a ballistic missile. The launch of the missile, which landed in Japan's Exclusive Economic Zone came days before leaders from the Group of 20 nations are due to discuss steps to rein in Pyongyang's weapons programmes. The Nikkei shares average fell 0.12 percent to 20,032.35, while Korean Kospi ended 0.58 percent lower to close at 2,380.52. Stocks in China closed lower as rally unwinds. The blue-chip CSI300 index fell 0.85 percent to 3,619.98 points, while the Shanghai Composite Index lost 0.41 percent to 3,182.80 points. In Australia, the Reserve Bank of Australia kept interest rates unchanged at 1.5 percent on Tuesday, as was widely expected. The benchmark ASX200 ended higher by 1.75 percent to close at 5,783.80 on broad-based gains across the majority of its sub-indexes. European Markets Lower on Geopolitical Worries European stock markets traded lower on Tuesday as a long-range ballistic missile test by North Korea and July 4 holidays for U.S. markets dampened risk appetite. A rally in Worldpay shares to a record high was not enough to offset a broad based decline among British shares. Payment processor Worldpay rocketed 27.7 percent after it confirmed preliminary takeover approaches from Vantiv and JP Morgan. Britain's blue-chip FTSE 100 index ended down 0.27 percent to close at 7,357.23. German stocks closed lower with the DAX ending 0.31 percent lower to 12,437.13. In France, the CAC index fell 0.4 percent to 5,174.90 points as Prime Minister Edouard Philippe is to present his government to a Page 1 of 7
4. TA Securities 5-Jul-17 A Member of the TA Group confidence vote . This comes after President Emmanuel Macron laid out his plans for parliamentary reforms Monday, in which he threatened to revert to a public referendum if lawmakers did not move quickly enough to back his plans. Page 2 of 7
5. TA Securities 5-Jul-17 A Member of the TA Group News In Brief Corporate Battersea Power Station has been awarded Property Company of the Year at the Evening Standard ’s Business Awards 2017. In a statement, Sime Darby Property Bhd said Battersea Power, which beat off strong competition from property heavyweights — Land Securities, Grainger and Berkeley Group — was praised for getting the power station project off the ground after over 30 years. (Financial Daily) Fraser & Neave Holdings Bhd (F&N) has formed a marketing partnership with McDonald's Malaysia, which will see its 100Plus products made available at all McDonald's outlets from today. According to Khalid Alvi, F&N's senior Vice President of group marketing for non-alcoholic beverages, the partnership has been two years in the making and follows a four-month trial at 10 McDonald's outlets in major towns. 100Plus will be the first F&N product to be served at a quick-service restaurant network in Malaysia, the group said. (The Edge Markets) Lotte Chemical Holding Bhd (LCT), which had to revise downwards its initial public offer (IPO) of shares from RM8 to RM6.50, said the 524.2mn shares offered to funds had been fuly subscribed. LCT, which is seeking to list on the Main Market of Bursa Malaysia Securities, said the offer shares were taken up by Malaysian and foreign institutional and selected investors, including approved bumiputera investors. The integrated petrochemical producer said the institutional price had been fixed at RM6.50 per IPO share and the difference of RM1.50 would be refunded to the successful retail investors. (StarBiz) Kumpulan Jetson Bhd (KJB) has received a notification from MCC Overseas (M) Sdn Bhd to rescind the award of a RM919.0mn sub-contract to its wholly owned subsidiary Jetson Construction Sdn Bhd (JCSB) in relation to main building works for a mixed development project at Jalan Conlay, Kuala Lumpur. (TheSun Daily) Majority shareholders of Wing Tai Malaysia Bhd, Wing Tai Holdings Ltd and Wing Tai Investment & Development Pte Ltd, have extended their offer for the shares they do not own in Wing Tai Malaysia up to July 18. In a filing with Bursa Malaysia, the two companies said the 4th of July closing date has been moved back to July 18 to allow for more acceptances. Thus far, its offer of RM1.80 a share has garnered 25.95% of voting shares, of this 4.02% of the voting shares are subject to verification. This brings the total number of voting shares secured by the joint offerors up to 92.08%. (TheSun Daily) Cahya Mata Sarawak Bhd's (CMS) unit, CMS Roads Sdn Bhd, said the upgrading of the 43.2-kilometre road connecting Miri to Marudi in Sarawak continues to progress ahead of its 30-month schedule, starting Sept 15, 2016. In view of the extensive public interest in the upgrading of this road link due to its unsatisfactory condition and growing importance, the company voluntarily issued a statement on its progress. (Bernama) Majuperak Holdings Bhd's recent share price surge has come under the scrutiny of Bursa Malaysia Securities Bhd. Maju Perak, whose share price surged 8.5 sen to 59.5 sen with 12.2 million shares done at midday, was issued an unusual market activity (UMA) query. The regulator advised investors to take note of the company’s reply to the above UMA query which will be posted at Bursa Malaysia’s website. (StarBiz) Gas Malaysia Bhd has appointed Akira Inukai as Non-Independent Non-Executive Alternate Director effective today. In a filing to Bursa Malaysia, the company said, Inukai, who has a master's degree in engineering from the Tohoku University, began his career in 1991 with Tokyo Gas Co Ltd. His last position was Senior General Manager, Global Business Planning Department. (Bernama) Ranhill Holdings Bhd's unit, Ranhill Capital Sdn Bhd, has acquired a 26% equity in SM Hydro Energy Sdn Bhd. In a filing to Bursa Malaysia, the company said it also had the Page 3 of 7
6. TA Securities 5-Jul-17 A Member of the TA Group intention to subsequently purchase the remaining shares to own 100 %, and participate in a new power project. (Bernama) Sinmah Capital Bhd is selling four pieces of land, together with 22 broiler farms, a chicken processing plant and a two-storey shophouse, in Batu Pahat, Johor, for a combined RM12.3mn cash, as part of its plans to dispose of certain assets which it deems to be no longer necessary to its poultry division operations. Sinmah expects to net a total pre-tax profit on disposal of RM8.1mn, which will be used to strengthen the group's cash flow and reduce its gearing. (The Edge Markets) Aeon Credit Service (M) Bhd's net profit jumped 20.9% YoY in the first financial quarter ended May 31, 2017 (1QFY18) to RM75.8mn, partly boosted by bad debt recovery and commission earned from sale of insurance products, and AEON Big loyalty programme processing fees. Revenue grew 15.5% YoY to RM302.3mn in 1QFY18. On prospects, Aeon Credit expects to be able to continue with its current financial performance for the financial year ending Feb 28, 2018 (FY18) based on the scheduled implementation of its business plan. (Bursa Malaysia/The Edge Markets) UEM Edgenta Bhd, an asset and facilities management group, announced that its whollyowned unit has been awarded a hospital support services contract from the Ministry of Health, valued at RM75.5mn. The company said the hospital support service contract is valid for two years, commencing from Sept 1, 2017 until Aug 31, 2019. UEM Edgenta added that it will provide the hospital support service at the National Cancer Institute in Putrajaya. (The Edge Markets) Malaysian Resources Corp Berhad (MRCB) has entered into a second supplemental agreement with its substantial shareholder Gapurna Sdn Bhd’s unit Nusa Gapurna Development Sdn Bhd to further vary the term of right of first refusal and call option agreement that the two parties signed in February 2013. In a filing with Bursa Malaysia, MRCB said the element that would be varied was the option period. (Financial Daily/Bursa Malaysia) Kawan Food Bhd has proposed a bonus issue of 89.9mn new shares on the basis of one bonus share for every three existing shares. This, said the group, will expand its issued and paid-up capital by a third to 359.5mn shares from 269.6mn shares. The frozen food manufacturer and exporter said the bonus issue is part of its reward to shareholders for their loyalty and continuing support. (The Edge Markets) Page 4 of 7
7. TA Securities 5-Jul-17 A Member of the TA Group News In Brief Economy Asia BNM Says No New Policy on Foreign Ownership of Insurers ’ Local Units Malaysia’s central bank said that foreign shareholders of local insurers must honour their commitment in maintaining specified levels of domestic shareholding. Bank Negara Malaysia (BNM) said there is no new policy on foreign ownership in insurance companies, and that the requirement is part of commitments made by foreign shareholders when they applied for entry into the Malaysian insurance market. BNM sent letters to wholly owned insurers three weeks ago requesting their foreign parents to reduce their stakes in line with regulation for domestically incorporated insurers. Foreign ownership of Malaysian insurers was set in 2009 at 70 percent - or more if the buyer could help consolidate and rationalise the industry. But some foreign insurers operating in the country could still be wholly owned by their overseas parent. (The Star) Mohd Irwan: Malaysia's 2017 GDP Growth Can Hit 5% or More Malaysia's economy can grow 5% or more this year, based on the country's first-half performance, said Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah. "The country's economy is performing well, and I personally think we can achieve 5% or more in GDP growth, backed by the strengthening economic environment, the increase in exports and investments, and job creation. "We also see the oil price stabilising at between US$47 and US$50 per barrel, and I think the ringgit will be getting better," he said, commenting on a recent Bloomberg report, "The Ringgit Is Easily Asia'ss Strongest Currency", which said the ringgit was the most stable major Asian currency during the first quarter of this year. Malaysia's economy recorded 5.6% in the first quarter of this year, boosted by strong domestic demand and private expenditure. Mohd Irwan, who is also chairman of the Malaysian Global Innovation and Creativity Centre (MaGIC), was speaking to reporters after launching MaGIC's Global Accelerator Programme in Cyberjaya on Tuesday. He said Malaysia's economy was never "in doom and gloom", and that the economic slowdown was due to the volatility in oil price and global market sentiment. Asked if Malaysia would revise the GDP projection, Mohd Irwan said, the Government was meeting with the Economic Planning Unit (EPU) and Bank Negara to see whether there was a need to revise it in Budget 2018, scheduled to be tabled on Oct 27. (The Star) Australia's Retail Sales Growth Exceeds Expectations Retail sales climbed 0.6% month-on-month in May, weaker than the 1% increase seen in April. Nonetheless, the pace of growth was faster than the 0.2% rise economists had forecast and also this was the second consecutive rise in sales. The stronger than expected rise in retail sales values in May, alongside the surge in sales in April, suggests that real consumption growth accelerated in the second quarter. Household goods retailing expanded 2.2% and sales of clothing and footwear rose 1.3%. Department store sales fell 0.7%, while other retailing gained 0.6%. Separately, Australia's consumer confidence improved during the week ended July 2, after weakening in the previous two weeks, a weekly survey compiled by the ANZ bank and Roy Morgan Research showed. The consumer confidence index climbed to 114.5 from 111.8 in the preceding week. Moreover, the latest reading was the highest since early April and above the long-run average. Confidence around both current and future economic conditions rose solidly. The current economic conditions sub index now sits at its highest point since mid-March. (RTT News) RBA Keeps Interest Rates Unchanged, Pointing to Strengthening Aussie Dollar The Reserve Bank of Australia (RBA) kept interest rates unchanged in a widely expected move, but the Australian dollar dropped as the central bank signaled that it was unlikely to raise rates anytime soon. The Australian dollar dropped as low as $0.7601 after the data, from as high as $0.7683 shortly before the release. The RBA said that an appreciating exchange rate would complicate the country's economic adjustment to lower levels of mining investment. The Aussie dollar was trading over $1.00 in 2013, when it reached a Page 5 of 7
8. TA Securities 5-Jul-17 A Member of the TA Group peak before trending lower amid a commodity slump . In the lead up to the decision, some analysts had speculated that the RBA might follow other central banks, such as the U.S. Federal Reserve and the European Central Bank (ECB) in indicating when it would begin to exit ultra-easy policy. But the RBA appeared to squash that speculation, keeping its benchmark interest rate unchanged at a record low 1.5%, and indicating a less than enthusiastic statement on the outcome. The central bank has held rates since August 2016 when it announced a 25 basis points cut in the cash rate. The RBA also pointed to what has long been a sticky wicket for lowering interest rates further: The housing market, where easier liquidity would likely drive property prices even higher. (CNBC) United States Fed Eyes September Announcement on Balance-Sheet Reduction Federal Reserve officials have indicated there is a strong chance they will announce in September a decision to start shrinking the central bank’s portfolio of bonds and other assets, while putting off until December any further interest-rate increase. The moves would give officials time to assess how markets react to the balance-sheet reductions and to confirm their view that a recent slowdown in inflation will fade. Launching the balancesheet plan in September also would afford Chairwoman Janet Yellen an opportunity to initiate it well ahead of any potential leadership transition. Her term as chair expires in February, and President Donald Trump hasn’t indicated whether he would nominate her to a second term or replace her. While a final decision on the next Fed moves hasn’t been made, officials will have several opportunities in coming weeks to clarify their thinking. The central bank releases minutes of the June meeting on Wednesday, and Ms. Yellen testifies before Congress next week. Officials will also gather in Jackson Hole, Wyo., at the end of August for an annual monetary-policy conference that will provide ample opportunities for them to offer further guidance. (The Wall Street Journal) Europe and United Kingdom UK Construction Sector Recovery Loses Momentum in June June data revealed weaker growth momentum across the U.K. construction sector, with business activity, new work and employment all expanding at slower rates than in May. Survey respondents commented on signs of renewed risk aversion among clients, reflecting concerns about the economic outlook and heightened political uncertainty. The latest survey also indicated that construction companies were the least optimistic about their near-term growth prospects since December 2016. At 54.8 in June, down from 56.0 in May, the seasonally adjusted IHS Markit/CIPS U.K. Construction Purchasing Managers’ Index (PMI) registered above the 50.0 no-change mark for the tenth month running. Although signalling a solid upturn in overall business activity, the rate of expansion eased from May’s 17-month peak. Softer growth momentum was recorded across all three broad categories of construction activity. Residential building continued to outperform commercial work and civil engineering in June. Moreover, the latest rise in housing activity was still the second-fastest since December 2015. (Markit Economis) Eurozone Producer Prices Fell in May The prices of goods leaving the Eurozone’s factory gates fell in May at the fastest pace in over a year, another indication that inflation is likely to remain weak despite a pickup in economic growth. The European Union’s statistics agency said that producer prices fell 0.4% from April, although they were up 3.3% from May 2016. The month-to-month decline was larger than the 0.1% fall expected by economists who were surveyed by The Wall Street Journal. The fall in prices at the factory gates is in line with other signs that consumer-price inflation is set to continue to remain modest over coming months, having briefly touched the European Central Bank’s target as energy prices rose in the early months of the year. Figures released Friday showed the annual rate of consumer-price inflation fell to 1.3% in June, its lowest level this year. Much of the variation in the inflation rate over recent years has been due to energy, with prices of other goods and services raising at a largely unchanged pace that has been well below the ECB’s target of just under 2%. That pattern was repeated at the factory gates in May, with energy prices falling 1.3% from April, while the prices of other goods were unchanged. The eurozone’s strengthening economic recovery has prompted some ECB policy makers to question whether its stimulus measures should be maintained at their current settings. (The Wall Street Journal) Page 6 of 7
9. TA Securities 5-Jul-17 A Member of the TA Group Share Buy-Back : 04 July 2017 Company Bought Back Price (RM) Hi/Lo (RM) 55,000 0.78/0.775 0.78/0.77 AMPROP Total Treasury Shares 14,009,100 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. liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 7 of 7 We accept no
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 04-Jul-17 2.02 2.25 5.84 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.37 2.28 5.51 0.95 0.62 1.26 10.3 24.1 19.7 15.8 25.3 30.7 19.5 9.4 29.7 12.8 8.9 19.0 5.8 4.0 2.2 7.8 4.0 3.4 2.44 2.70 6.47 -17.2 -16.7 -9.7 1.88 1.96 4.09 7.4 14.8 42.7 -5.2 5.1 38.3 4.80 3.70 5.70 8.00 17.50 11.00 23.60 5.80 10.00 1.28 0.96 1.34 1.38 0.66 0.96 0.79 1.32 0.69 33.6 29.4 43.9 49.6 105.2 73.4 137.2 50.7 40.3 30.5 33.6 48.4 55.2 115.5 82.9 142.4 54.5 39.0 11.6 9.1 11.4 13.1 15.0 13.2 14.8 10.0 26.3 12.8 8.0 10.3 11.8 13.6 11.6 14.3 9.3 27.1 4.1 3.0 3.5 3.1 2.6 5.2 2.8 2.4 3.2 4.1 3.0 3.6 3.5 2.6 5.2 2.9 2.4 3.2 4.49 3.00 5.70 6.87 16.30 9.68 20.66 5.59 11.14 -13.1 -11.0 -12.3 -5.2 -3.4 -0.3 -1.7 -9.5 -5.0 3.60 2.08 3.90 4.11 12.70 7.50 19.26 4.53 8.20 8.3 28.4 28.2 58.3 23.9 28.7 5.4 11.7 29.0 4.8 11.7 16.0 44.3 16.6 17.7 2.9 7.4 19.5 0.42 1.34 5.47 3.47 0.65 1.23 2.00 2.06 5.91 0.46 1.62 6.00 3.50 0.78 0.58 2.26 1.49 6.26 0.79 0.63 1.04 1.10 1.00 1.27 na 1.08 0.10 5.7 14.6 28.1 15.3 4.9 8.3 12.6 11.9 42.0 5.7 13.5 34.8 20.3 5.7 9.6 12.5 12.0 45.8 7.4 9.2 19.5 22.6 13.1 14.8 15.8 17.3 14.1 7.3 9.9 15.7 17.1 11.4 12.8 15.9 17.2 12.9 0.0 2.1 2.2 2.2 3.8 0.8 2.8 1.5 4.2 0.0 2.1 2.2 2.7 3.8 0.8 2.8 1.5 4.2 0.51 1.37 5.52 3.61 0.74 1.39 2.15 2.48 6.15 -17.6 -2.2 -0.9 -3.9 -11.6 -11.5 -7.0 -16.8 -3.9 0.37 0.82 4.65 3.07 0.35 0.41 1.56 1.46 5.57 15.1 63.4 17.6 13.0 85.7 203.7 28.2 41.0 6.1 -3.4 27.6 14.4 8.4 7.4 113.9 17.6 19.8 0.5 1.99 2.00 0.49 11.0 11.5 18.1 17.3 5.0 5.0 2.19 -9.1 1.93 3.1 -1.0 15.00 18.48 17.84 21.08 0.50 0.58 74.8 93.1 81.3 20.1 101.9 19.9 18.4 18.1 5.0 4.5 5.4 5.0 15.30 19.10 -2.0 -3.2 13.26 15.24 13.1 21.3 7.8 12.8 2.21 7.35 25.30 1.20 84.02 3.48 1.96 4.89 0.92 2.23 8.62 27.41 1.39 88.66 4.10 2.46 4.41 1.23 0.49 0.35 0.32 0.48 0.36 0.47 0.66 0.43 0.57 6.7 26.4 121.1 6.1 290.1 22.3 27.5 15.7 8.1 7.9 40.6 151.0 6.3 327.7 24.7 27.0 16.6 11.6 32.9 27.9 20.9 19.8 29.0 15.6 7.1 31.1 11.4 28.1 18.1 16.8 19.1 25.6 14.1 7.3 29.4 7.9 1.8 1.4 2.8 5.0 3.3 4.3 3.1 0.9 2.7 2.1 2.0 3.0 5.1 3.3 4.9 4.1 1.0 3.8 3.00 8.89 27.00 1.33 85.00 3.66 2.04 5.00 1.07 -26.3 -17.3 -6.3 -9.6 -1.2 -4.8 -3.9 -2.2 -14.0 2.11 7.30 22.44 1.13 74.12 2.26 1.46 4.14 0.78 4.7 0.7 12.7 6.1 13.4 53.9 34.2 18.0 17.9 -14.0 0.3 7.8 4.3 7.4 37.0 13.3 12.9 15.7 43.28 52.08 1.03 198.6 187.4 21.8 23.1 4.6 4.6 55.64 -22.2 40.61 6.6 -2.0 9.34 5.62 11.51 6.54 1.35 1.29 49.3 25.7 54.7 27.7 18.9 21.9 17.1 20.3 0.5 1.4 0.6 1.6 10.00 6.38 -6.6 -11.9 7.50 4.19 24.6 34.0 17.6 24.4 2.49 0.13 3.34 0.13 0.74 1.24 19.3 0.4 23.2 0.4 12.9 34.4 10.7 34.7 5.6 0.0 6.4 0.0 3.42 0.16 -27.2 -21.9 2.48 0.05 0.4 150.0 -15.9 150.0 5.85 4.18 6.39 4.70 0.78 0.51 9.5 13.3 15.0 16.5 61.3 31.4 39.1 25.4 0.6 1.5 0.6 1.8 6.73 4.37 -13.1 -4.3 5.54 3.85 5.6 8.6 -7.9 0.0 7.30 6.52 2.00 5.78 1.70 6.80 7.60 1.80 6.05 2.20 0.56 0.16 0.34 -0.18 0.29 17.2 35.8 12.3 26.4 3.7 24.4 40.0 15.1 29.8 5.5 42.4 18.2 16.2 21.9 45.6 29.9 16.3 13.3 19.4 30.9 1.1 2.7 1.8 2.3 0.5 1.5 3.1 2.2 2.6 0.8 7.40 7.07 2.38 5.94 2.64 -1.4 -7.8 -16.0 -2.7 -35.6 4.06 5.62 1.88 4.20 1.65 79.8 16.0 6.4 37.6 3.0 51.1 -1.1 -5.2 8.0 -28.0 INDUSTRIAL SCIENTX SKPRES 8.70 1.31 9.71 1.80 0.52 0.53 54.5 8.6 66.3 10.6 16.0 15.3 13.1 12.3 2.1 3.2 2.3 4.0 8.99 1.44 -3.2 -9.0 6.01 1.15 44.8 13.9 29.9 1.6 MEDIA ASTRO MEDIA PRIMA STAR 2.54 0.93 2.33 3.45 0.60 1.40 1.06 0.65 0.64 13.2 1.7 7.1 14.5 2.8 6.5 19.2 54.2 32.9 17.6 32.7 35.9 4.9 1.5 7.7 5.1 2.4 7.7 3.01 1.52 2.70 -15.6 -39.1 -13.7 2.51 0.93 2.19 1.2 0.0 6.4 -2.3 -19.6 4.0 -12.3 -29.7 -7.1 -10.5 -8.5 -22.9 -61.1 0.19 0.80 7.03 0.44 6.43 1.33 0.40 218.4 1.9 4.4 36.8 11.0 21.8 2.5 137.3 -10.9 -0.1 33.7 2.3 0.0 -53.7 -19.2 1.30 23.1 -5.9 BANKS & FINANCIAL SERVICES AFG 3.90 AFFIN 2.67 AMBANK 5.00 CIMB 6.51 HLBANK 15.74 MAYBANK 9.65 PBBANK 20.30 5.06 RHBBANK BURSA 10.58 CONSTRUCTION BPURI GADANG GAMUDA IJM PESONA SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N HUPSENG NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX OIL & GAS DNEX 0.61 0.73 1.03 3.6 4.3 16.8 14.0 1.7 1.7 0.69 MHB 0.82 0.87 1.82 -1.2 1.3 na 62.2 0.0 0.0 1.16 MISC 7.34 6.85 0.79 56.4 48.9 13.0 15.0 4.1 4.1 7.90 PANTECH 0.60 0.69 1.29 4.1 4.9 14.3 12.1 3.0 3.3 0.67 PCHEM 7.14 7.74 1.07 39.2 40.5 18.2 17.6 2.9 3.1 7.80 SENERGY 1.62 1.71 2.49 6.6 4.0 24.5 40.9 0.6 0.6 2.10 UMWOG 0.41 0.80 2.05 -11.7 -3.5 na na 0.0 0.0 1.04 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.60 1.55 1.49 12.0 12.6 13.4 12.7 0.0 0.0 1.98
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 1.70 3.03 4.46 24.88 9.51 6.51 Target Price BETA (RM) 1.55 3.88 4.15 26.19 10.02 7.52 1.78 0.47 1.07 0.86 1.23 0.43 EPS (sen) PER (X) FY17 FY18 FY17 FY18 4.2 12.3 18.7 111.8 34.0 37.6 8.5 15.7 21.0 119.1 37.5 34.5 40.3 24.6 23.8 22.3 28.0 17.3 20.0 19.2 21.2 20.9 25.3 18.9 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 2.9 2.3 2.2 2.2 2.6 3.5 2.9 2.6 2.7 2.4 3.3 2.6 2.52 3.70 4.81 25.50 9.70 6.58 -32.5 -18.1 -7.3 -2.4 -2.0 -1.1 1.42 3.00 4.21 22.92 7.41 5.53 PROPERTY GLOMAC 0.65 0.70 0.59 1.6 6.3 40.8 10.3 4.6 4.6 0.83 -21.2 0.65 HUAYANG 1.05 1.07 0.66 17.3 17.4 6.1 6.0 3.8 3.3 1.43 -26.7 1.03 IBRACO 0.81 0.92 0.37 4.9 10.2 16.6 7.9 4.3 4.9 1.05 -22.9 0.79 IOIPG 2.18 2.25 0.87 17.4 17.4 12.5 12.5 3.2 3.4 2.46 -11.4 1.85 MAHSING 1.58 1.76 0.73 14.3 13.5 11.0 11.7 4.1 4.1 1.70 -7.1 1.34 SNTORIA 0.87 0.98 0.28 6.2 10.3 14.0 8.4 1.2 1.2 1.00 -13.5 0.69 SPB 4.90 5.98 0.59 25.6 22.8 13.2 14.8 2.4 2.4 5.19 -5.6 4.32 SPSETIA 3.38 4.10 0.67 27.3 29.4 14.3 13.3 4.1 4.1 4.50 -24.9 2.80 SUNWAY 3.90 3.95 0.47 18.3 18.6 13.2 13.0 3.1 3.1 4.05 -3.7 2.84 Note: SUNWAY proposed bonus issue of shares and warrants. Ex-Target price RM1.69. For more details please refer to 15.06.17 report. REIT SUNREIT 1.75 1.86 0.51 8.9 10.1 19.7 17.3 5.1 5.8 1.84 -4.9 1.63 CMMT 1.55 1.72 0.59 8.1 8.6 19.2 18.0 5.4 5.8 1.72 -9.9 1.45 % Chg YTD 19.7 1.0 5.9 8.6 28.3 17.7 9.7 -10.9 1.4 3.7 17.4 8.5 0.8 1.9 3.2 18.0 17.9 25.4 13.4 20.7 37.2 -6.5 -7.1 -19.0 11.8 10.5 8.1 10.8 8.0 30.0 7.4 6.9 1.7 1.3 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.04 24.16 18.50 14.10 1.46 1.13 21.47 19.60 17.37 1.90 0.76 0.76 0.77 1.01 0.53 7.1 98.4 88.2 131.9 8.2 6.4 102.3 101.3 130.8 10.7 14.6 24.6 21.0 10.7 17.8 16.2 23.6 18.3 10.8 13.7 6.7 3.0 3.3 3.1 6.8 6.7 3.1 3.8 3.3 6.8 1.80 25.70 22.66 14.90 1.64 -42.2 -6.0 -18.4 -5.4 -11.0 1.04 22.92 18.10 13.00 1.39 0.0 5.4 2.2 8.5 5.0 -24.1 1.5 -13.1 1.4 -2.0 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 4.77 5.00 5.49 6.64 5.25 4.95 5.70 7.50 1.30 0.92 0.71 0.66 14.6 20.8 24.8 21.4 16.0 21.1 25.0 22.3 32.7 24.0 22.1 31.0 29.8 23.7 21.9 29.8 1.5 4.2 3.6 2.9 1.7 4.2 3.6 3.0 5.99 5.19 6.60 6.90 -20.4 -3.7 -16.8 -3.8 4.11 4.64 5.48 5.81 16.1 7.8 0.2 14.3 1.1 3.5 -8.2 11.6 TECHNOLOGY Semiconductor & Electronics IRIS 0.18 INARI 2.13 MPI 13.30 UNISEM 3.62 0.28 2.30 15.60 3.95 1.32 0.80 0.51 0.82 -2.6 10.3 94.2 26.9 -0.3 na 12.4 20.7 112.9 14.1 27.1 13.4 na 17.2 11.8 13.4 0.0 3.8 2.0 3.3 0.0 2.3 2.0 3.3 0.24 2.23 13.50 3.70 -27.1 -4.5 -1.5 -2.2 0.10 1.44 7.20 2.27 75.0 48.2 84.7 59.5 59.1 28.3 79.5 53.4 3.19 8.56 3.34 8.10 1.09 1.44 37.6 17.2 37.1 17.5 8.5 49.7 8.6 48.9 1.3 1.2 1.6 1.2 3.59 9.45 -11.1 -9.4 2.16 5.76 47.7 48.6 39.3 41.3 1.76 3.65 2.05 4.05 0.75 0.67 14.3 17.1 22.7 15.1 12.3 21.3 7.7 24.1 2.4 3.5 4.0 3.1 1.87 4.59 -5.9 -20.5 1.44 3.61 22.2 1.1 10.7 -15.1 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 20.69 OCBC 10.61 UOB 22.90 PLANTATIONS WILMAR IFAR 3.32 0.47 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 23.30 12.00 25.40 1.23 1.14 1.08 173.8 87.7 195.6 190.2 11.9 92.4 12.1 209.3 11.7 10.9 11.5 10.9 2.9 5.7 3.1 2.9 6.7 3.1 21.2 11.0 24.0 -2.3 -3.1 -4.7 14.72 8.84 17.51 40.6 28.3 30.8 19.3 18.9 12.3 3.72 0.53 0.91 1.12 28.9 4.9 31.1 5.2 10.7 9.1 2.4 2.5 2.7 2.7 4.0 0.6 -17.0 -21.0 2.96 0.44 12.2 6.8 -7.5 -10.5 11.5 9.7 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.
12. TA Securities COMPANY UPDATE Wednesday , July 05, 2017 A Member of the TA Group FBMKLCI: 1,762.08 Sector: Consumer MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Fraser and Neave Berhad TP: RM27.41 (+8.4%) Last Traded:RM25.30 100Plus Now in All McDonald’s Malaysia Outlets HOLD THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Damia Othman Tel: +603-2167-9602 damia@ta.com.my The Partnership Yesterday, the media reported that McDonald’s Malaysia will start serving F&N ready-to-drink 100Plus at all of McDonald’s outlets across Malaysia. According to F&N, the partnership has been devised for two years and has been trialled at 10 McDonald’s outlets in major towns for four months. Note that F&N will be the first F&N product to be served at a quick-service restaurant network in Malaysia. Moreover, F&N and McDonalds are working closely to incorporate 100Plus into the menu offerings and leverage on the upcoming SEA Games events as both of them are sponsors. McDonald’s Platform McDonald’s Malaysia currently has 262 outlets nationwide. It plans to invest RM1.4bn to increase the number of outlets to 450 by 2025 across the country. With a customer base of 169mn people, McDonald’s expects this to grow further by double-digit percentage this year. Figure 1: McDonald’s Malaysia Has 262 Outlets Restaurant Type Drive-through 24 'hour' Delivery services McCafes Total Outlets No. of Outlets > 150 200 > 90 100 262 Source: StarBiz, TA Securities Impact on F&N Revenue Management guided that F&N production hubs in Shah Alam, Kuching and Kota Kinabalu will be able to meet the demand from McDonalds outlets. Prior to this partnership, we assumed that total utilisation rate for all soft drinks operations to be 80% for FY17 from a total estimated capacity of 160 – 165mn litres/year. Post partnership, we believe that this will ramp up the production by 5% and 10% for FY17 and FY18 respectively. Furthermore, we have done a quick survey on the likelihood of consumers (the samples are taken from 16 of our colleagues in TA Research) to opt for 100Plus with their McValue Meals. We find that generally 50% of people would opt for the isotonic drink due to it being the healthier choice. Given the competitive pricing strategy adopted by the group, we have increased our revenue projection slightly by 0.9% and 1.7% for FY17 and FY18 respectively. Outlook We are positive on the partnership as this would i) diversify sales channel to attain sustainable revenue stream from the partner, ii) costs savings from economies of scale and iii) create more brand awareness across a bigger market base. Forecast Overall, we raise our earnings forecasts by 0.4% and 0.7% for FY17 and FY18 considering to factor in potential earnings growth from the partnership. Page 1 of 3 www.taonline.com.my Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) FNH 3689 Main Board 366.5 9,272.5 27.00/22.44 337.4 11.5 0.3 Fraser & Neave Ltd Employees Provident Fund Skim Amanah Saham Bumiputera 55.5 10.9 9.5 Forecast Revision Forecast Revision (%) Net profit (RMm) Consensus TA's / Consensus (%) Previous Rating FY17 FY18 0.4 0.7 443.8 553.4 403.4 448.6 110.0 123.4 Hold (Maintained) Financial Indicators Net debt/equity (%) ROE (%) ROA (%) NTA/Share (RM) Price/ NTA (x) Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth FY17 Net cash 20.5 13.3 5.6 4.5 FY18 Net cash 23.4 16.1 6.4 3.9 FNH FBM KLCI 3.9 (0.8) 4.0 0.9 13.4 7.0 (1.1) 6.5 (12-Mth) Share Price relative to the FBM KLCI Source: Bloomberg
13. TA Securities 5-Jul-17 A Member of the TA Group Valuation We maintain our DDM valuation at RM27 .41/share. Maintain Hold on F&N as we are wary of the price competitive strategy adopted by F&N, which could limit earnings margin in the near term. Financial Summary (RMmn) PROFIT & LOSS FYE Sep 30 (RMmn) Revenue Core EBITDA Reported PBT MI Net profit Core net profit Core EPS EPS Growth PER Net Div Div Yield (sen) (%) (x) (sen) (%) 2015 2016 2017E 2018F 2019F 4,107.6 4,167.6 4,243.5 4,328.8 4,367.7 372.0 523.7 586.7 705.3 843.5 287.2 442.9 493.1 614.8 759.6 0.0 0.0 0.0 0.0 0.0 233.4 385.4 443.8 553.4 645.6 334.9 343.3 443.8 553.4 645.6 91.4 93.7 121.1 151.0 176.2 26.9 2.5 29.3 24.7 16.7 27.7 27.0 20.9 16.8 14.4 57.5 57.5 70.0 75.0 95.0 2.3 2.3 2.8 3.0 3.8 CASH FLOW FYE Sep 30 (RMmn) OPERATING Pretax profit from : Continuing operations 287.2 Depreciation Interest income Interest expense Associate Others CFO before WC WC changes: Working capital Retirement benefit Tax paid Others CFO INVESTING Capex Interest income Disposal Acquisition Others CFI 2015 2017E 2018F 2019F 442.9 493.1 614.8 759.6 86.7 (13.4) 16.2 (8.1) 96.1 464.8 90.3 (15.8) 14.4 (8.1) 41.1 564.8 94.5 0.0 11.4 (12.2) 0.0 586.7 98.9 0.0 9.9 (18.3) 0.0 705.3 102.9 0.0 8.4 (27.4) 0.0 843.5 88.9 (2.6) (44.9) (168.5) 337.8 (27.8) (1.3) (60.7) 13.4 488.4 (6.1) 0.0 (49.3) 0.0 531.3 (6.9) 0.0 (61.5) 0.0 636.9 (3.1) 0.0 (113.9) 0.0 726.4 (72.3) 7.8 0.9 0.0 (6.5) (70.1) (149.7) 9.3 0.5 0.0 13.8 (126.1) (150.0) 0.0 0.0 0.0 0.0 (150.0) (150.0) 0.0 0.0 0.0 0.0 (150.0) (150.0) 0.0 0.0 0.0 0.0 (150.0) FINANCING Interest paid Dividend paid Borrowings Share buy back Others CFF (16.3) (201.4) (50.0) (11.9) 8.9 (270.7) Net Cash Flow (3.0) 2016 (13.6) (229.1) 104.6 0.0 (10.2) (148.3) (11.4) (256.6) (50.0) 0.0 0.0 (317.9) (9.9) (274.9) (50.0) 0.0 0.0 (334.8) (8.4) (348.2) (50.0) 0.0 0.0 (406.6) 214.1 63.4 152.2 169.8 Page 2 of 3 BALANCE SHEET FYE Sep 30 (RMmn) 2015 2016 2017E 2018F 2019F PPE 1,064.8 1,112.8 1,168.3 1,219.4 1,266.5 Inv in an associates 72.4 78.7 90.9 109.2 136.6 Intangible assets 131.2 125.1 125.1 125.1 125.1 Others 235.6 220.9 220.9 220.9 220.9 Total Non - Current Assets1,504.0 1,537.5 1,605.3 1,674.7 1,749.2 Current assets Inventories Receivables Cash Others Total Current Assets 542.8 557.9 412.2 5.7 1,518.6 517.3 542.9 593.6 14.5 1,668.3 526.8 552.8 656.9 14.5 1,751.0 537.3 542.2 564.0 569.0 809.1 978.9 14.5 14.5 1,924.9 2,104.6 Total Assets 3,022.6 3,205.9 3,356.3 3,599.6 3,853.8 Long term liabilities LT debts Retirement benefit Others (DTA) Total 300.0 37.9 32.7 370.6 374.7 41.9 32.6 449.3 328.4 41.9 32.6 403.0 282.1 41.9 32.6 356.7 235.8 41.9 32.6 310.4 Current Liabilities Payables Borrowings Others Total 754.8 0.0 20.1 774.9 723.4 29.9 14.1 767.4 736.6 26.2 14.1 776.9 751.4 22.5 14.1 788.0 758.2 18.8 14.1 791.1 Total Liabilities 1,145.6 1,216.7 1,179.9 Equities Share capital Treasury shares Reserves Total (ex MI) MI Total Equity 366.6 366.8 366.8 366.8 366.8 (1.7) (1.7) (1.7) (1.7) (1.7) 1,519.6 1,636.0 1,823.2 2,101.7 2,399.1 1,876.8 1,989.0 2,176.2 2,454.7 2,752.1 0.2 0.2 0.2 0.2 0.2 1,877.0 1,989.2 2,176.4 2,454.9 2,752.3 Total Equity & Liabilities 3,022.6 3,205.9 3,356.3 1,144.7 1,101.5 3,599.6 3,853.8 VALUATION RATIOS FYE Sep 30 (RMmn) 2015 2016 2017E 2018F 2019F PER (x) 30.0 29.3 22.6 18.2 15.6 P/BV (x) 5.4 5.1 4.6 4.1 3.7 NTA/share (RM) 4.76 5.09 5.60 6.36 7.17 FCF/share (RM) 0.26 0.89 1.04 1.33 1.58 ROE (%) 12.4 19.4 20.4 22.5 23.5 ROA (%) 7.7 12.0 13.2 15.4 16.8 Net Debt/Equity Net cash Net cash Net cash Net cash Net cash
14. TA Securities 5-Jul-17 A Member of the TA Group (THIS PAGE IS INTENTIONALLY LEFT BLANK) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
15. SECTOR UPDATE TA Securities Wednesday , July 05, 2017 FBMKLCI: 1,762.08 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Overweight Semiconductor Sector (Maintained) All Regions On Song THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Paul Yap, CFA Tel: +603-2167-9603 paulyap@ta.com.my www.taonline.com.my Broad Based Growth Sustaining and building upon last month’s growth, worldwide semiconductor sales increased 22.6% YoY (+1.9% MoM) in May 2017. Tallying the trends, this is the 10th and 3rd consecutive month of positive YoY and MoM growth. While the memory market continues to take the spotlight, consistent growth was seen across other semiconductor product categories as well. WSTS is forecasting a semiconductor sales growth of 11.5% YoY for 2017. By percentage, memory and sensors are expected to record the fastest growth at 30.4% YoY and 13.9% YoY. Figure 1 : Global Chip Sales US$bn % Worldwide Sales 35.0 Change YoY (%) 70.0 60.0 30.0 50.0 40.0 25.0 30.0 20.0 20.0 15.0 10.0 0.0 10.0 -10.0 -20.0 5.0 -30.0 Jan-17 May-16 Jan-15 Sep-15 May-14 Jan-13 Sep-13 May-12 Jan-11 Sep-11 May-10 Jan-09 Sep-09 May-08 Jan-07 Sep-07 May-06 Jan-05 Sep-05 May-04 Jan-03 -40.0 Sep-03 0.0 Source: SIA, TA Securities Americas and China Leads the Pack For the second month in a row, MoM growth was positive across all regions. Similarly on a YoY basis, all regions reported double digit growth rates. The highest among the regions were Americas and China at 30.5% YoY and 26.3% YoY respectively. Positively, growth within Europe (+18.3% YoY), Japan (+15.8% YoY) and Asia Pacific/All Others (+17.7% YoY) have been accelerating. Figure 2: Growth in Sales by Region (%YoY) Figure 3: Breakdown of Sales by Region % 100% Americas 100.0 Europe Japan Asia Pacific Worldwide 90% 80% 80.0 70% 60.0 60% 40.0 50% 40% 20.0 30% 0.0 20% -20.0 10% Source: SIA, TA Securities Source: SIA, TA Securities Page 1 of 2 Asia Pacific Jan-17 May-16 Jan-15 Sep-15 May-14 Jan-13 Sep-13 May-12 Jan-11 Japan Sep-11 May-10 Jan-09 Europe Sep-09 May-08 Jan-07 Americas Sep-07 May-06 Jan-05 Sep-05 May-04 Jan-03 Jan-17 May-16 Sep-15 Jan-15 May-14 Sep-13 Jan-13 May-12 Sep-11 Jan-11 May-10 Sep-09 Jan-09 May-08 Jan-07 Sep-07 May-06 Jan-05 Sep-05 May-04 Jan-03 Sep-03 -60.0 Sep-03 0% -40.0
16. TA Securities 5-Jul-17 A Member of the TA Group Investing in 3D NAND Increasing for the fourth month in a row , billings rose 6.4% MoM and 41.9% YoY to US$2.3bn. Activities were led by memory and foundry manufacturers, with investments poured in 3D NAND and other leading edge technologies. Figure 4 : Billings (US$mn) US$mn 2,500 Billings % YoY 300.0 Growth 250.0 2,000 200.0 150.0 1,500 100.0 1,000 50.0 0.0 500 -50.0 Jan-17 May-16 Jan-15 Sep-15 May-14 Jan-13 Sep-13 May-12 Jan-11 Sep-11 May-10 Jan-09 Sep-09 May-08 Jan-07 Sep-07 May-06 Jan-05 -100.0 Sep-05 0 Source: SEMI, TA Securities Overweight We have an Overweight call on the semiconductor sector. The continued positive momentum in sales data should bode well for semiconductor companies under our coverage. We maintain our expectations for a stronger second half, driven by anticipated major smartphone launches. Apart from that, growth will also be driven by capacity expansion plans and potential new product introductions. We have existing BUY calls on MPI and Unisem. HOLD Inari. Peers Comparison EPS Inari Amertron Unisem MPI Weighted average Inari Amertron Unisem MPI Weighted average Price (RM) 2.13 3.62 13.30 TP (RM) 2.30 3.95 15.60 HOLD BUY BUY NTA/Share CY17 CY18 (x) (x) 0.5 0.5 2.1 2.2 5.7 6.6 2.4 2.7 CY17 (x) 4.7 1.7 2.3 3.2 Mkt Cap RMmn 4,075.1 2,656.4 2,645.4 CY17 (sen) 11.2 26.9 98.1 40.2 P/NTA CY18 (sen) 12.9 27.1 114.7 45.6 EPS Growth CY17 CY18 (%) (%) 27.6 15.2 21.8 0.4 15.0 16.8 22.4 11.5 CY18 (%) 25.8 12.6 18.7 20.1 CY17 (sen) 6.4 12.0 27.0 13.8 ROE CY18 (x) 4.0 1.6 2.0 2.8 CY17 (%) 26.6 13.5 18.4 20.6 DPS CY18 (sen) 5.1 12.0 27.0 13.3 PER CY17 (x) 19.1 13.4 13.6 15.9 CY18 (x) 16.5 13.4 11.6 14.3 Div yield CY17 CY18 (%) (%) 3.0 2.4 3.3 3.3 2.0 2.0 2.8 2.6 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. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2
17. Wednesday , 05 July, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
18. T e c h n i c a l TA Securities V i e w Wednesday , July 05, 2017 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Technical Stock Picks Malaysia FBM KLCI: 1,762.08 (-6.59, -0.37%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD EKOVEST GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 4/7/2017 1762.08 2.67 3.90 5.00 4.77 6.51 5.00 5.47 9.34 5.62 5.85 4.46 1.04 5.49 9.65 1.32 5.06 9.51 14.10 6.64 3.65 3.19 0.41 0.77 0.42 4.05 1.92 1.64 1.19 1.34 1.64 1.58 2.26 1.28 1.38 1.42 1.28 1.62 2.00 1.20 0.95 2.06 Change (6.59) 0.00 -0.01 -0.02 -0.03 -0.01 -0.02 0.00 -0.13 -0.01 0.00 -0.02 -0.01 -0.02 0.01 -0.01 -0.02 0.00 -0.02 0.03 -0.04 -0.07 -0.01 0.00 0.01 0.00 -0.02 -0.02 -0.01 -0.01 0.02 0.00 0.01 0.02 -0.01 0.02 0.02 -0.05 -0.02 -0.02 -0.01 0.01 Tel: +603-2167-9607 High Low 1,768.30 1,762.08 2.69 3.90 5.04 4.81 6.57 5.01 5.48 9.49 5.63 5.88 4.48 1.05 5.53 9.67 1.34 5.08 9.53 14.20 6.65 3.67 3.26 0.42 0.77 0.43 4.05 1.93 1.67 1.20 1.36 1.64 1.58 2.27 1.28 1.40 1.44 1.28 1.69 2.02 1.23 0.96 2.07 2.67 3.87 4.98 4.75 6.49 4.99 5.45 9.33 5.57 5.79 4.46 1.04 5.48 9.61 1.30 5.06 9.50 14.10 6.61 3.64 3.19 0.41 0.76 0.42 4.05 1.92 1.62 1.19 1.33 1.62 1.53 2.26 1.26 1.38 1.39 1.26 1.60 1.98 1.20 0.94 2.05 Bollinger Bands Lower Mid Upper 1,762.21 1,780.67 1,799.14 2.63 3.77 4.84 4.80 6.52 4.95 5.31 9.34 5.46 5.81 4.43 1.02 5.31 9.54 1.30 5.02 9.51 13.86 6.48 3.58 3.10 0.40 0.71 0.40 4.02 1.91 1.54 1.17 1.25 1.61 1.57 2.23 1.25 1.30 1.32 1.23 1.49 1.96 1.17 0.90 2.01 2.69 3.97 5.00 4.95 6.66 4.99 5.41 9.70 5.66 5.97 4.50 1.11 5.88 9.60 1.33 5.11 9.58 14.20 6.59 3.75 3.25 0.41 0.76 0.41 4.08 1.93 1.62 1.20 1.29 1.63 1.61 2.26 1.27 1.45 1.39 1.29 1.74 2.02 1.24 0.94 2.10 2.74 4.16 5.15 5.10 6.79 5.03 5.51 10.06 5.86 6.13 4.57 1.20 6.45 9.67 1.36 5.20 9.65 14.55 6.69 3.91 3.41 0.43 0.80 0.43 4.14 1.96 1.70 1.22 1.34 1.65 1.66 2.29 1.30 1.61 1.47 1.35 2.00 2.08 1.31 0.99 2.18 stsoo@ta.com.my www.taonline.com.my RSI Moving Averages 14d 10d 30d 50d 39.60 1,773.91 1,776.68 1,772.43 DMI DI + DI - ADX 18.96 21.58 23.87 Diff (2.61) 40.52 40.84 45.88 29.87 51.11 49.22 60.56 35.83 47.70 43.55 43.87 19.30 12.99 67.21 48.55 37.31 48.97 48.70 59.17 39.93 47.15 40.32 52.96 52.53 38.94 49.85 55.35 43.08 64.40 49.13 34.61 49.11 49.27 45.68 49.73 42.67 38.34 46.21 40.91 53.99 43.22 18.32 12.44 20.43 11.19 25.75 12.02 24.56 7.96 22.60 10.95 20.60 5.55 6.74 25.21 19.91 13.64 20.72 22.15 21.48 19.04 19.58 12.88 24.71 33.09 8.04 15.68 26.56 18.32 24.35 22.95 18.97 27.24 35.14 25.61 23.21 21.21 19.46 15.22 14.00 30.59 16.37 0.12 (12.33) (1.22) (17.90) 4.69 (2.91) 4.08 (21.94) 1.26 (14.07) 4.22 (26.47) (41.33) 9.63 1.61 (9.55) 3.90 6.01 9.78 (0.74) (3.31) (7.66) 9.41 (20.51) 0.90 0.90 9.54 2.80 16.34 3.09 (6.70) (1.95) 4.15 4.59 0.02 (5.40) (10.18) (6.69) (10.68) 11.05 (4.03) 2.68 3.90 5.00 4.91 6.62 5.00 5.45 9.57 5.61 5.91 4.48 1.07 5.61 9.62 1.34 5.09 9.57 14.19 6.62 3.68 3.19 0.41 0.74 0.41 4.06 1.93 1.64 1.20 1.31 1.64 1.60 2.26 1.27 1.39 1.37 1.27 1.63 2.01 1.21 0.94 2.06 2.72 4.05 5.09 5.00 6.51 5.00 5.39 9.76 5.74 5.91 4.51 1.14 6.06 9.53 1.32 5.20 9.50 14.07 6.54 3.78 3.22 0.43 0.76 0.42 4.10 1.93 1.61 1.21 1.29 1.64 1.64 2.26 1.28 1.48 1.41 1.31 1.79 2.04 1.25 0.93 2.12 2.80 4.13 5.20 5.08 6.22 5.03 5.35 9.79 5.77 5.99 4.54 1.17 6.23 9.46 1.31 5.28 9.42 13.99 6.51 3.85 3.28 0.44 0.77 0.43 4.25 1.91 1.57 1.25 1.29 1.67 2.02 2.28 1.31 1.36 1.50 1.41 1.85 2.02 1.26 0.92 2.15 18.20 24.77 21.65 29.09 21.06 14.92 20.49 29.90 21.34 25.02 16.38 32.02 48.07 15.58 18.30 23.18 16.82 16.14 11.71 19.78 22.89 20.54 26.16 23.68 28.55 14.78 17.02 15.52 8.01 19.86 25.67 29.19 30.99 21.03 23.19 26.62 29.64 21.92 24.68 19.54 20.39 13.73 32.55 12.22 27.67 41.10 24.46 13.18 31.78 13.21 19.50 15.13 61.71 58.80 18.81 24.37 29.76 30.11 37.95 18.21 7.80 16.52 21.28 15.19 16.59 41.29 16.79 44.58 19.59 19.99 13.23 10.41 14.59 11.45 23.50 22.46 28.49 26.89 18.75 24.75 30.15 14.09 Line (1.43) -0.03 -0.08 -0.06 -0.07 0.09 0.00 0.04 -0.10 -0.05 -0.03 -0.02 0.02 -0.22 0.06 0.01 -0.06 0.03 0.05 0.04 -0.06 -0.01 -0.01 0.00 0.00 -0.05 0.01 0.02 -0.01 0.01 -0.01 -0.09 0.00 -0.01 -0.01 -0.03 -0.04 -0.08 0.00 -0.02 0.01 -0.03 MACD Signal Diff 1.78 (3.215) -0.04 -0.08 -0.06 -0.05 0.14 -0.01 0.03 -0.06 -0.04 -0.02 -0.02 0.02 -0.19 0.07 0.01 -0.06 0.05 0.08 0.04 -0.05 -0.01 -0.01 -0.01 0.00 -0.05 0.01 0.02 -0.02 0.01 -0.01 -0.12 0.00 -0.01 0.01 -0.04 -0.05 -0.07 0.00 -0.01 0.01 -0.02 0.006 (0.002) 0.002 (0.017) (0.051) 0.007 0.006 (0.043) (0.004) (0.015) (0.002) 0.000 (0.030) (0.007) (0.004) 0.003 (0.021) (0.034) (0.000) (0.004) (0.001) 0.001 0.003 0.001 0.007 (0.003) 0.000 0.004 0.005 0.003 0.025 0.001 0.002 (0.019) 0.010 0.008 (0.010) (0.002) (0.004) (0.002) (0.003) DMI MACD Recent Signal SELL SELL DMI MACD Signal Change - BUY SELL SELL SELL BUY SELL BUY SELL BUY SELL BUY SELL SELL BUY BUY SELL BUY BUY BUY SELL SELL SELL BUY SELL BUY BUY BUY BUY BUY BUY SELL SELL BUY BUY BUY SELL SELL SELL SELL BUY SELL BUY BUY BUY - BUY SELL BUY SELL SELL BUY BUY SELL SELL SELL SELL BUY SELL SELL SELL BUY SELL SELL SELL SELL SELL BUY BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY SELL SELL SELL SELL SELL BUY SELL SELL BUY - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
19. T e c h n i c a l TA Securities V i e w Wednesday , July 05, 2017 FBMKLCI: 1,762.08 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Stock Screen s Malaysia End Day Census of 04.07.2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name Price BORNEO OIL BHD DAGANG NEXCHANGE BIO OSMO BHD PWORTH TALAM TRANSFORM DATAPREP HLDGS CAREPLUS GROUP IRIS CORP BHD LUSTER INDUSTRIE PRIVASIA TECHNOL JCY INTERNATIONA DRB-HICOM BHD PERAK TRANSIT BH EFFICIENT E-SOLU MPAY VIZIONE HOLDINGS BCM ALLIANCE B HOVID BHD DIGI.COM BHD FAJAR BARU VS INDUSTRY BHD PRESS METAL BHD PUC FOUNDER MSC AEMULUS HOLDINGS KARYON INDUS BHD SILVER RIDGE BUMI ARMADA BHD AMBANK HLDG BHD KUALA LUMPUR KEP TRC SYNERGY BHD 0.12 0.61 0.10 0.26 0.05 0.45 0.41 0.18 0.13 0.17 0.61 1.77 0.32 0.36 0.24 0.12 0.21 0.33 5.00 0.98 2.07 2.68 0.14 0.51 0.26 0.22 0.77 5.00 24.88 0.74 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.10 0.57 0.08 0.23 0.04 0.38 0.38 0.14 0.12 0.15 0.56 1.64 0.28 0.31 0.19 0.11 0.19 0.30 4.95 0.94 1.99 2.56 0.13 0.47 0.23 0.19 0.71 4.84 24.64 0.67 0.11 0.59 0.09 0.25 0.04 0.43 0.41 0.16 0.12 0.16 0.60 1.75 0.30 0.34 0.22 0.12 0.20 0.32 4.99 0.97 2.05 2.67 0.14 0.50 0.25 0.21 0.76 5.00 24.87 0.72 0.12 0.61 0.11 0.27 0.05 0.47 0.44 0.18 0.13 0.17 0.63 1.87 0.32 0.37 0.24 0.13 0.21 0.33 5.03 1.00 2.12 2.78 0.15 0.53 0.28 0.22 0.80 5.15 25.09 0.76 49.03 56.97 56.82 54.88 53.25 52.88 59.28 55.70 49.15 54.33 50.95 56.59 71.07 57.67 58.03 49.11 55.94 54.61 49.22 57.48 56.15 48.26 50.92 54.92 48.14 58.26 52.96 45.88 52.43 58.36 0.11 0.59 0.09 0.25 0.04 0.41 0.40 0.16 0.12 0.16 0.58 1.78 0.31 0.33 0.22 0.12 0.20 0.31 5.00 0.97 2.07 2.68 0.14 0.49 0.26 0.21 0.74 5.01 24.91 0.72 0.12 0.59 0.09 0.25 0.04 0.44 0.38 0.17 0.13 0.17 0.61 1.72 0.29 0.35 0.22 0.12 0.20 0.32 4.99 0.95 2.02 2.71 0.14 0.50 0.25 0.21 0.76 5.11 24.83 0.70 0.12 0.58 0.10 0.25 0.04 0.45 0.34 0.18 0.13 0.18 0.62 1.60 0.28 0.36 0.23 0.13 0.21 0.33 5.03 0.90 2.00 2.73 0.14 0.48 0.26 0.21 0.77 5.20 24.73 0.67 Vol 67,734,900 66,638,100 45,215,400 18,384,100 16,259,900 14,588,500 8,396,200 6,774,500 6,222,000 5,507,700 5,460,400 4,266,600 4,094,900 3,896,100 3,347,200 3,250,700 3,152,000 2,970,100 2,969,700 2,947,100 2,890,600 2,732,600 2,259,300 2,231,400 1,949,800 1,822,200 1,755,100 1,712,100 1,709,900 1,694,800 20-day avg vol 25,855,880 26,186,890 6,487,295 20,670,680 3,967,770 6,760,225 10,542,710 16,692,570 7,772,055 838,025 2,762,485 8,381,430 8,124,740 1,567,265 3,672,255 2,506,775 2,316,775 1,683,620 3,437,235 4,113,540 3,707,935 2,390,565 6,142,025 2,706,875 1,680,810 1,424,855 8,801,480 3,976,000 1,521,860 4,429,105 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 mediumterm 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
20. TA Securities A Member of the TA Group *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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Stock Name Price AHB HOLDINGS BHD HOMERIZ CORP BHD DESTINI BHD MAJUPERAK HOLDIN MLABS SYSTEMS MIECO CHIPBOARD HEVEABOARD BHD SINOTOP HOLDING PRIVASIA TECHNOL CENTRAL IND BHD SYSTECH BHD FORMOSA PROSONIC SYF RESOURCES BH THREE-A RESOURCE GUAN CHONG BHD TONG HERR RESOUR AHMAD ZAKI RES PALETTE MULTIMED MERGE ENERGY BHD 0.30 0.99 0.73 0.55 0.14 0.97 1.49 0.73 0.17 1.10 0.32 0.95 0.58 1.35 1.30 3.60 1.18 0.07 0.51 0.37 MTOUCHE TECH Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.20 0.88 0.69 0.21 0.09 0.83 1.25 0.66 0.15 0.94 0.25 0.87 0.53 1.27 0.96 3.24 1.02 0.06 0.24 0.27 0.23 0.92 0.70 0.37 0.11 0.88 1.35 0.69 0.16 1.00 0.28 0.90 0.55 1.30 1.10 3.40 1.09 0.06 0.36 0.32 0.27 0.96 0.72 0.53 0.13 0.93 1.45 0.72 0.17 1.05 0.31 0.94 0.57 1.33 1.24 3.56 1.15 0.06 0.48 0.36 76.39 74.31 61.22 75.17 65.34 80.05 74.00 63.53 54.33 69.57 68.28 65.68 61.64 64.61 81.08 65.00 65.99 56.85 81.95 69.46 0.23 0.91 0.70 0.41 0.12 0.88 1.34 0.68 0.16 1.01 0.27 0.91 0.54 1.29 1.13 3.37 1.10 0.06 0.38 0.31 0.23 0.92 0.71 0.35 0.11 0.87 1.36 0.69 0.17 0.99 0.29 0.90 0.56 1.30 1.07 3.47 1.09 0.06 0.34 0.31 0.22 0.93 0.72 0.35 0.11 0.87 1.35 0.70 0.18 0.99 0.29 0.88 0.57 1.31 1.05 3.41 1.10 0.07 0.33 0.30 Vol 23,822,200 2,230,000 6,801,700 19,445,700 4,780,000 6,433,500 11,212,400 1,270,300 5,507,700 11,000 8,055,000 1,550,900 2,492,500 1,902,600 2,934,000 429,500 3,268,400 1,272,600 2,312,800 2,606,400 20-day avg vol 1,559,320 166,090 612,545 2,071,190 517,365 751,285 1,419,865 167,680 838,025 1,860 1,604,985 340,750 555,270 429,750 680,525 102,290 822,540 345,750 664,515 753,385 *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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stock Name Price EITA RESOURCES PROLEXUS BHD CYPARK RESOURCES TECK GUAN PERDAN AXIATA GROUP BER NAKAMICHI CORP ATLAN HLDG BHD CARING PHARMACY UMW OIL & GAS CO CONCRETE ENGINEE SALCON BHD TPC PLUS BHD CIMB GROUP HOLDI PJBUMI BHD AMWAY MALAYSIA H ALAM MARITIM RES INDUSTRONICS BHD UNIMECH GRP BHD PARAGON UNION SUCCESS TRANSFOR 1.70 1.38 2.59 1.79 4.77 0.11 4.50 1.72 0.41 1.52 0.54 0.41 6.51 0.25 7.35 0.17 0.23 1.07 0.47 3.60 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 1.76 1.43 2.63 1.82 4.80 0.13 4.52 1.74 0.42 1.53 0.55 0.42 6.52 0.26 7.36 0.18 0.24 1.08 0.47 3.61 1.83 1.54 2.71 1.99 4.95 0.18 4.72 1.80 0.49 1.60 0.57 0.44 6.66 0.29 7.50 0.20 0.25 1.13 0.49 3.71 1.91 1.65 2.78 2.17 5.10 0.22 4.92 1.86 0.56 1.67 0.59 0.46 6.79 0.32 7.65 0.23 0.27 1.18 0.52 3.81 32.11 31.83 35.00 36.58 29.87 37.20 30.43 42.91 15.00 38.74 28.05 27.50 51.11 29.90 38.31 23.57 38.16 36.04 38.63 37.95 1.82 1.52 2.70 1.99 4.94 0.17 4.67 1.79 0.47 1.59 0.57 0.43 6.64 0.29 7.50 0.20 0.25 1.12 0.49 3.70 1.87 1.56 2.72 2.00 5.01 0.17 4.78 1.79 0.52 1.62 0.58 0.45 6.49 0.31 7.58 0.23 0.26 1.14 0.50 3.85 1.88 1.54 2.65 2.02 5.09 0.16 4.80 1.64 0.57 1.60 0.60 0.46 6.20 0.32 7.60 0.25 0.28 1.13 0.49 3.77 Vol 81,600 1,716,100 361,000 91,900 4,658,700 1,000 2,000 2,500 4,720,900 3,900 1,249,800 95,000 24,459,900 900 35,600 2,712,000 350,300 4,800 13,400 103,200 20-day avg vol 86,535 459,705 434,505 49,325 4,883,140 5,265 4,320 5,850 1,713,175 745 699,250 68,330 20,936,070 24,365 50,455 1,248,225 510,270 35,445 26,495 52,805 Raw data sourced from Bloomberg Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 2 of 2