Bursa Malaysia Daily Market Report - 5 May

Transcription

1. Friday , 05 May, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. 2. 3. 4. 5. Banking Sector: BNM Removes Reserve Fund Requirement Fraser and Neave Berhad: Leveraging on Existing Capabilities IPO - CabNet Holdings Berhad: Securing Your Facilities MISC Berhad: Chunky One-Off Offshore Bonanzas UMW Oil & Gas Corporation Bhd: Expensive Acquisition Aborted Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen 3. Foreign Technical Stock Watch (AUS, HK & FSSTI) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
2. Daily Note Daily Market Commentary (A Participating Organisation of Bursa Malaysia Securities Bhd) Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur Tel : 603 - 2072 1277. Fax : 603 - 2032 5048 Friday, 05 May 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only Review & Outlook KLSE Market Statistics (04.05.2017) Volume (mil) +/-chg (RMmn) Main Market 2,329.8 -343.8 2,749.7 Warrants 287.0 34.8 30.4 ACE Market 815.8 -142.0 107.5 Bond 17.3 1.0 1.2 ETF 0.0 -0.02 0.0 Total 3,449.9 2,888.8 Off Market 410.0 346.3 72.4 Value +/-chg -113.4 2.7 -42.3 -0.5 -0.02 -173.4 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP May Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA (mn) 300.0 45.0 40.2 15.7 3.0 2.0 1.6 1.2 1.0 Up Down 140 570 20 161 22 85 2 8 1 0 185 824 % chg % YTD chg 1,758.67 12,561.65 17,590.91 1,756.00 -13.84 -108.36 -182.58 -7.00 -0.78 -0.86 -1.03 -0.40 7.12 9.55 19.54 7.37 20,951.47 6,075.34 7,248.10 19,445.70 2,241.24 24,683.88 3,228.62 1,573.05 5,669.44 3,127.37 1,896.36 5,876.37 -6.43 2.79 13.57 0.00 21.57 -12.25 -9.19 8.93 22.07 -7.98 -5.39 -15.97 -0.03 0.05 0.19 0.00 0.97 -0.05 -0.28 0.57 0.39 -0.25 -0.28 -0.27 6.02 12.86 1.47 1.73 10.60 12.20 12.08 1.95 7.04 0.76 -3.69 3.72 Top 10 KLCI Movers Based on Mkt Cap. Off Market XDL-WC PTRANS REACH SPSETIA SIME IGBREIT VERSATL BTM MEXTER Value/ Volume 1.18 0.11 0.13 0.07 1.47 0.84 0.18 @ @ @ @ @ @ @ @ @ (RM) 0.01 0.20 0.51 0.37 9.30 1.68 1.25 0.20 0.25 Counter Mkt Cap. (RM’mn) MAYBANK 94,146 TENAGA 78,660 PBBANK 77,153 PCHEM 57,040 CIMB 52,412 IHH 50,954 AXIATA 46,036 GENTING 36,612 GENM 32,650 TM 24,276 Chg Vol. (RM) (mn) -0.39 19.42 -0.04 8.73 -0.16 5.38 -0.02 6.96 -0.02 16.08 -0.01 5.83 -0.08 4.99 -0.13 2.88 -0.10 5.56 -0.01 4.58 Important Dates KGR OUP - 2:2 Rights Issue - RI of up to 1,251.2m shares together GROUP with up to 625.6m free detachable warrants. 2 rights shares for every 2 existing shares held, at an issue price of RM0.05 per rights share. LISTING ON: 05/05/2017. PASUK GB - 1:1 Rights Issue - RI of up to 405.8m shares. SUKGB 1 rights share for every 1 existing share held, at an issue price of RM0.10 per rights share. LISTING ON: 11/05/2017. The local market slipped further into profit-taking correction mode Thursday, after the government aborted the sale of Bandar Malaysia to IWH and CREC, and the more certainty for US interest rate hike in June encouraged investors to take profits and reduce positions. The KLCI ended 13.84 points down to 1,758.67, off an early high of 1,768.71 and low of 1,754.23, as losers trashed gainers 824 to 185 on lower turnover of 3.44bn shares worth RM2.88bn. With sell signals triggered on daily momentum indicators, more downside is likely ahead of the weekend, before overbought momentum is fully neutralized to pave way for bargain hunters to return and nibble. Immediate uptrend supports for the index are at 1,749 and 1,738, the rising 30 and 50-day moving average levels, with better support from the lower Bollinger band at 1,722. Immediate upside hurdle stays at 1,782, the 76.4%FR of the 1,867 to 1,503 downswing, followed by 1,800 psychological level and the 18 May 2015 high of 1,823. Hook-down momentum indicators on Ekovest implies near-term downside risk, with key chart supports from 95sen and 200-day ma (92sen) and 76.4%FR (82sen) cushioning downside risk, while rebounds should be capped by the 150%FP (RM1.24), 161.8%FP (RM1.31) and 176.4%FP (RM1.40). Likewise, IWCB shares should correct to the 23.6%FR (RM2.70), 38.2%FR (RM2.34) and 50%FR (RM2.05) upon trade resumption, with key supports from the 61.8%FR (RM1.75) and 76.4%FR (RM1.39) padded by the 200-day ma (RM1.29). News Bites • • • • • • • • • • • MISC Bhd reported a higher net profit of RM676.2mn for the 1QFY17, from RM571.0mn a year ago mainly due to stronger contribution from the group's offshore business segment. Ekuiti Nasional Bhd has terminated the proposed consolidation exercise involving UMW Oil & Gas Corporation Bhd, Icon Offshore Bhd and Orkim Sdn Bhd. The demerger between UMW Holdings Bhd and UMW Oil & Gas Corp Bhd is progressing as planned to be completed by July, despite the latter's three-party merger with Icon Offshore Bhd and Orkim Sdn Bhd coming to a halt. UMW Oil & Gas Corp Bhd is making a cash call to raise RM1.8bn to pare down debts after the three-way merger with Icon Offshore Bhd and Orkim Sdn Bhd was called off. Sime Darby Property, Kumpulan Wang Persaraan (Diperbadankan) and Brunsfield Development Sdn Bhd have signed a MoUto lead the development of Malaysia Vision Valley. PUC Founder (MSC) Bhd has embarked on the next phase of its development by unveiling a new leadership team and reiterating its commitment to its business direction. ECM Libra Financial Group Bhd has identified hotel management and ownership as its new core business after disposing of its investment banking and securities business in 2012. Fraser & neave Holdings Bhd is allocating an additional RM200mn for capital expenditure, on top of the RM300mn accounted previously, to develop ongoing projects in Malaysia and Thailand. Pos Malaysia Bhd is still waiting for clarity from the government on whether it can raise the tariff for its domestic and international postal services by this year. The Caixin-Markit services purchasing managers' index for China dropped to 51.5 last month, down from 52.2 in March. Initial jobless claims, a proxy for layoffs across the U.S., declined 19,000 to a seasonally adjusted 238,000 in the week ended April 29. Exchange Rate USD/MYR 4.3270 0.0054 USD/JPY 112.98 0.7800 EUR/USD 1.093 0.0021 Commodities Futures Palm Oil (RM/mt) 2,475.00 12.00 Crude Oil ($/Barrel) 45.49 -2.06 Gold ($/tr.oz.) 1,228.40 -10.10 DISCLAIMER The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD Kaladher Govindan, Head of Research
3. TA Securities Friday , May 05, 2017 FBMKLCI: 1,758.67 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 More Correction Before Stabilizing The local market slipped further into profit-taking correction mode Thursday, after the government aborted the sale of Bandar Malaysia to IWH and CREC, and the more certainty for US interest rate hike in June encouraged investors to take profits and reduce positions. The KLCI ended 13.84 points down to 1,758.67, off an early high of 1,768.71 and low of 1,754.23, as losers trashed gainers 824 to 185 on lower turnover of 3.44bn shares worth RM2.88bn. Immediate Uptrend Supports at 1,749, Then 1,738 With sell signals triggered on daily momentum indicators, more downside is likely ahead of the weekend, before overbought momentum is fully neutralized to pave way for bargain hunters to return and nibble. Immediate uptrend supports for the index are at 1,749 and 1,738, the rising 30 and 50-day moving average levels, with better support from the lower Bollinger band at 1,722. Immediate upside hurdle stays at 1,782, the 76.4%FR of the 1,867 to 1,503 downswing, followed by 1,800 psychological level and the 18 May 2015 high of 1,823. Sell Ekovest & IWCB Hook-down momentum indicators on Ekovest implies near-term downside risk, with key chart supports from 95sen and 200-day ma (92sen) and 76.4%FR (82sen) cushioning downside risk, while rebounds should be capped by the 150%FP (RM1.24), 161.8%FP (RM1.31) and 176.4%FP (RM1.40). Likewise, IWCB shares should correct to the 23.6%FR (RM2.70), 38.2%FR (RM2.34) and 50%FR (RM2.05) upon trade resumption, with key supports from the 61.8%FR (RM1.75) and 76.4%FR (RM1.39) padded by the 200-day ma (RM1.29). Most Asian Markets Lower on Hawkish Fed Statement Markets across Asia were lower on Thursday, as investors processed the outlook for US monetary policy with a drop in commodity prices and an effort to tame financial risks in China. The Federal Reserve decided on Wednesday to keep interest rates unchanged as expected, but left open the prospect of raising them next month. The probability of the Fed lifting rates 25 basis points at its June meeting jumped to 90 percent, according to pricing data tracked by Bloomberg, from a 61.1 percent chance a week ago. Korea’s Kospi traded up 0.97 percent or 21.57 points to close at 2,241.24 points as it topped 2011’s record high to continue a strong recent run as foreign money flows into the market. The benchmark ASX 200 traded down 0.27 percent or 15.9 points to close at 5,876.40, owing to big falls in the price of iron ore. Meanwhile, China stocks fell as strong gains in small-caps offset a survey showing softer services sector activity which raised concerns over growing economic risks. Further curbing sentiment, the securities regulator on Wednesday vowed to step up efforts to prevent and control financial risks ahead of a key Party Congress later this year. The blue-chip CSI300 index fell 0.26 percent, to 3,404.39 points, while the Shanghai Composite Index dropped 0.25 percent to 3,127.37 points. Japan's markets were closed for the Greenery Day holiday. Page 1 of 8
4. TA Securities 5-May-17 A Member of the TA Group Wall Street Closes Little Changed After Health Care Bill Passes Wall Street ended flat on Thursday as a steep fall for the energy sector countered some solid earnings reports , with major stock indexes closing little changed after the U.S. House of Representatives passed a healthcare overhaul. The energy sector dropped 1.9 percent, easily the worst performing group as U.S. oil plunged below USD46 a barrel, hitting a five-month low after data showed a smaller-than-expected decline in U.S. inventories. Investors also digested the House of Representatives' vote to pass a bill aimed at repealing and replacing Obamacare. The House on Thursday afternoon narrowly voted to repeal major portions of the 2010 Affordable Care Act, known as Obamacare, and replace it with a Republican healthcare plan, sending it to the Senate for consideration. The bill's passage comes after House Republicans pulled healthcare legislation earlier this year in a setback, raising questions among investors about President Donald Trump's ability to enact his agenda. Focus was turning to Friday's U.S. employment report as the next gauge of the economy and labor market. Data on Thursday showed new applications for U.S. jobless benefits fell sharply last week and the number of Americans on unemployment rolls hit a 17-year low. Exxon Mobil's 1.3-percent decline and Chevron's 1.8-percent drop weighed on the S&P. The Dow Jones Industrial Average fell 6.43 points, or 0.03 percent, to 20,951.47, the S&P 500 gained 1.39 points, or 0.06 percent, to 2,389.52 and the Nasdaq Composite added 2.79 points, or 0.05 percent, to 6,075.34. Page 2 of 8
5. TA Securities 5-May-17 A Member of the TA Group News In Brief Corporate Ekovest Bhd , whose shares and warrants fell sharply on yesterday following the negative news about the cancellation of the Bandar Malaysia deal, described the sell-down as a “temporary phenomenon”. Its managing director Datuk Seri Lim Keng Cheng said: “We believe the sell-down of Ekovest shares today is just a temporary phenomenon, as our fundamentals remain strong and intact. (StarBiz) MISC Bhd reported a higher net profit of RM676.2mn for the first quarter ended March 31, 2017, from RM571.0mn a year ago mainly due to stronger contribution from the group’s offshore business segment. Its revenue for the quarter amounted to RM3.0bn compared to RM2.4bn during the corresponding period last year. (StarBiz) The demerger between UMW Holdings Bhd (UMWH) and its oil and gas arm, UMW Oil & Gas Corp Bhd (UMWOG), is progressing as planned to be completed by July, despite the latter's three-party merger with Icon Offshore Bhd and Orkim Sdn Bhd coming to a halt. Trading in the shares of Icon and UMWOG had been suspended since 9am this yesterday and will resume trading today. (The Edge Markets) Ekuiti Nasional Bhd (Ekuinas) has terminated the proposed consolidation exercise involving UMW Oil & Gas Corporation Bhd (UMW-OG), Icon Offshore Bhd (ICON) and Orkim Sdn Bhd (Orkim). Ekuinas, a government-linked private equity fund management company, in a statement today said that it had, with the agreement of UMW-OG, terminated the two separate share purchase agreements entered between the two parties on Jan 19, 2017. (Bernama) UMW Oil & Gas Corp Bhd (UMW-OG) is making a cash call to raise RM1.8bn to pare down debts after the three-way merger with Icon Offshore Bhd and Orkim Sdn Bhd was called off. Permodalan Nasional Berhad which will emerge as the single largest shareholder of UMWOG after UMW Holdings Bhd’s share distribution is expected to inject some RM804.0mn cash into the ailing UMW-OG as a result of the rights issue. (Financial Daily) Sime Darby Property, Kumpulan Wang Persaraan (Diperbadankan) (KWAP) and Brunsfield Development Sdn Bhd have signed a memorandum of understanding (MoU)to lead the development of Malaysia Vision Valley. The MoU was signed by Sime Darby Bhd managing director Datuk Jauhari Hamidi, Brunsfield Development managing director Tan Sri Gan Thian Leong and KWAP chief executive officer Datuk wan Kamaruzaman Wan Ahmad. (Financial Daily) PUC Founder (MSC) Bhd has embarked on the next phase of its development by unveiling a new leadership team and reiterating its commitment to its business direction. In addition to introducing the new leadership line-up, Cheong reiterated PUC's commitment in exploring new and viable business opportunities that will benefit the group as a whole. (The Edge Markets) Trading in the shares of Iskandar Waterfront City Bhd (IWCity) has been suspended since yesterday’s morning until today. The suspension came on the heels of the announcement of the termination of the 60% stake sale in Bandar Malaysia project to the joint venture company, IWH CREC Sdn Bhd. IWCity is expected to announce additional details on the exercise today. (The Edge Markets) ECM Libra Financial Group Bhd has identified hotel management and ownership as its new core business after disposing of its investment banking and securities business in 2012. The group is proposing to acquire a 50% stake in the subsidiaries of Singapore-based TP Real Estate Holdings Pte Ltd and three hotels from Tune Hotels Sdn Bhd to venture into hotel business. (Financial Daily) Page 3 of 8
6. TA Securities 5-May-17 A Member of the TA Group Fraser & Neave Holdings Bhd is allocating an additional RM200mn for capital expenditure, on top of the RM300mn accounted previously, to develop ongoing projects in Malaysia and Thailand. (Financial Daily) Pos Malaysia Bhd is still waiting for clarity from the government on whether it can raise the tariff for its domestic and international postal services by this year, said its group chief executive officer Datuk Mohd Shukrie Mohd Salleh. (Financial daily) Both parties in the dispute over the validity and outcome of the recent Ire-Tex Corporation Berhad EGM will be heard in the Kuala Lumpur High Court on Monday. In a statement to Bursa Malaysia, the protective packaging maker said the court had set aside the ex-parte (one party) order made earlier (on Monday) against Elite Cosmo Group Ltd the substantial shareholder which gave a special notice requesting for the EGM - and the two men who were elected directors at the meeting. (StarBiz) MRCB-Quill Real Estate Investment Trust posted a 39.9% increase in net property income for the first quarter ended March 31, 2017 to RM37.1mn from RM26.5mn a year earlier on higher revenue. Its quarterly revenue was up 38% at RM46.6mn compared with RM33.8mn a year ago. (The Edge Markets) Samchem Holdings Bhd posted a 38% rise in net profit for the first quarter ended March 31, 2017 (1QFY17) to RM5.0mn from RM3.6mn a year ago, on higher sales and wider profit margin. Quarterly revenue was up 36% to RM217.6mn from RM159.6mn in the previous year. (The Edge Markets) Daibochi Plastic and Packaging Industry Bhd's net profit fell 11% in the first quarter ended March 31, 2017 (1QFY17) to RM5.7mn versus RM6.5mn the same time last year, despite higher revenue. The drop-in earnings are due to lower foreign currency gain and higher raw material costs. (The Edge Markets) The good recovery of Bursa Malaysia in the first quarter of this year is expected to continue amid sustained growth in the domestic economy, said Second Finance Minister Datuk Seri Johari Abdul Ghani.He said the Government observed that year-to-date, the FBM KLCI gained by 6% while the number of initial public offering stocks had also risen in tandem. (StarBiz) Malaysia’s contention over the European Parliament’s resolution on measures to curb palm oil imports via the Asean platform demonstrates the nation’s commitment in defending the palm oil industry from continuous slanders from various entities. Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said that the ministry was fully aware of the negative sentiment on the palm oil industry in major European Union countries, and stressed that the allegations were nothing new. (StarBiz) Page 4 of 8
7. TA Securities 5-May-17 A Member of the TA Group News In Brief Economy Asia China Services Gauge Drops to Lowest Level in Eleven Months An independent gauge of China ’s services sector growth fell to its lowest level since May 2016 last month, pushing further below its official counterpart and indicating a softer start to the second quarter for the country’s economy as a whole. The Caixin-Markit services purchasing managers’ index dropped to 51.5 last month, down from 52.2 in March and closer to the 50-point mark separating growth from contraction. The dip marked the fourth consecutive month of weaker growth and broadened the Caixin gauge’s spread with an official services PMI sub-index, produced by China’s statistics bureau, to 1.1 points – the widest since December 2015. The divergence was tracked by a dip from Caixin’s manufacturing PMI released on Tuesday, which at 50.3 marked its widest spread against the official manufacturing gauge since June 2016. In both cases, the Caixin gauge focuses primarily on smaller and private firms, while that from the National Bureau of Statistics primarily tracks larger, state-owned enterprises. The independent services gauge fell in April despite a mild rebound in new order growth that followed a six-month low in March. However staff numbers grew at the slowest pace for the year so far and the first fall in backlogs of work for seven months. Input costs decelerated to the slowest pace in six months, while output prices rose only marginally from their March levels. Together the services and manufacturing readings brought Caixin’s composite index for business activity in China to 51.2 in April, down from 52.1 in March at the lowest reading in ten months. (Financial Times) Australia Trade Surplus A$3.107 Billion in March Australia posted a seasonally adjusted merchandise trade surplus of A$3.107 billion in March, the Australian Bureau of Statistics said. That was shy of forecasts for A$3.250 billion and down from A$3.574 in February. It was also down A$550 million or 15% on year. Exports gained A$776 million or 2% on month to A$33.343 billion. Non-monetary gold surged A$443 million (32%), rural goods climbed A$271 million (7%) and non-rural goods added A$19 million. Net exports of goods under merchanting fell A$1 million (2%). Services credits added A$45 million (1%). Imports were up A$1.325 billion or 5% on month to A$30.235 billion. Consumption goods jumped A$751 million (10%), while intermediate and other merchandise goods climbed A$715 million (8%) and non-monetary gold spiked A$68 million (14%). Capital goods fell A$214 million (4%), while services debits added A$6 million. (RTT News) Household Debt Growth Weakens Australia's Economic Resilience, Says RBA's Lowe Double-digit growth in household debt amid weak income growth cannot be strengthening the resilience of the economy, Reserve Bank of Australia Governor Philip Lowe said. "Nor can a high concentration of interest-only loans," he said in a speech in Brisbane. The increase in household debt relative to the income has made the economy less resilient to future shocks, he noted. Given the high levels of debt and housing prices, relative to incomes, it is likely that some households respond to a future shock to income or housing prices by deciding that they have borrowed too much. Lowe observed that this could prompt a sharp contraction in their spending, as they try to get their balance sheets back into better shape. The banker cautioned that an otherwise manageable downturn could be turned into "something more serious." Regarding the labor market, Lowe said employment growth has been a bit stronger of late and the forward-looking indicators suggest ongoing growth in employment. (RTT News) United States U.S. Jobless Claims Fall to 238,000 The number of Americans applying for first-time unemployment benefits fell sharply last week to one of the lowest levels since the 1970s, the latest sign the labor market is tightening. Initial jobless claims, a proxy for layoffs across the U.S., declined 19,000 to a seasonally adjusted 238,000 in the week ended April 29, the Labor Department said. Economists surveyed by The Wall Street Journal had forecast 248,000 new claims. Estimates of jobless claims are volatile, but they generally have hovered near four-decade Page 5 of 8
8. TA Securities 5-May-17 A Member of the TA Group lows in recent months , indicating employers are expanding payrolls or holding steady rather than laying off workers. The four-week moving average of initial claims, considered a more-reliable measure because it evens out volatility, rose 750 last week to 243,000, still a historically low level. (The Wall Street Journal) U.S. Productivity Fell in the First Quarter The productivity of U.S. workers decreased in the opening months of the year, highlighting the economy’s low-growth trajectory. Productivity, or how many goods and services U.S. workers produced per hour, fell at an annual rate of 0.6% in the first quarter of 2017 from the prior three months, the Labor Department said. Economists surveyed by The Wall Street Journal had expected a 0.2% drop for the January to March period. Unit labor costs— a measure of wages and benefits for American workers—grew at a 3.0% rate in the first quarter compared with the prior three months. Economists had forecast a 2.7% rise. (The Wall Street Journal) U.S. Trade Activity Picks Up in First Quarter The U.S. trade gap widened in the first quarter compared to a year earlier as exports and imports rose, suggesting underlying strength in the global economy. The trade deficit expanded $9.4 billion, or 7.5%, in the first three months of the year compared to the same period a year earlier, the Commerce Department said. Exports and imports both grew by 7.1%. Trade slumped slightly at the end of the quarter. The trade gap narrowed by 0.1% in March from a month earlier to a seasonally adjusted $43.71 billion. Economists surveyed by The Wall Street Journal had expected a $44.5 billion trade deficit in March. Exports slipped by 0.9% while imports fell by 0.7%. Higher trade flows are a sign of economic health because they suggest individuals and companies around the world are able and willing to step up spending. American producers are benefiting from greater global demand for U.S.made goods and services. Exports of services reached a record in March, before adjusting for inflation, Thursday’s report showed. Exports of goods fell in March compared to February, reflecting lower sales abroad of oil, cars and civilian aircraft, but are rising over a broader period. Imports fell in March because of reduced spending on civilian aircraft, computers, oil and cars. Trade figures also carry political implications as President Donald Trump seeks to revamp U.S. trade deals with other countries. The trade gap with Mexico has surged nearly 14% this year compared to the first quarter of 2016, hitting the highest level since November 2007. Imports from Mexico set a record in March. The deficit with China has grown 1.2% this year compared to the first three months of 2016. (The Wall Street Journal) Europe & United Kingdom Eurozone Business Surveys Point to 6-year High in Economic Growth Businesses in the Eurozone are in slightly better health than previously thought, suggesting that economic growth in the region is running at a six-year high. IHS Markit’s purchasing managers’ index for the bloc, which measures hiring, inventories and the like, came in at 56.8 in the final reading for April, a nose above earlier estimates. The services component produced a reading of 56.4, against an earlier measure of 56.2. Anything over 50 indicates expansion, and this is the 46th month of expansion in a row. Among the details, final assessments showed a slightly weaker-than-expected reading from France, but a stronger outcome for Germany. Ireland led the pack. But the survey compilers point out that improvements appear to be in sync, with the gap between the readings from France, Germany and Italy at the joint-narrowest on record. (Financial Times) Eurozone Retail Sales Up for Third Month Despite Higher Prices The volume of Eurozone retail sales increased for the third consecutive month in March and by more than market expectations, showing shoppers have so far not been deterred by rising prices. Retail sales in the 19 countries sharing the euro increased by 0.3% in March from February, the European Union's statistics office Eurostat said, more than the average market expectation of a 0.1% rise. Year-on-year, the volume of retail sales grew 2.3% in March, higher than the 2.1% rise forecast by economists polled by Reuters. But the higherthan-expected rise in March was offset by a downward revision of February data. The month-on-month figure for February was revised by Eurostat to 0.5% from the previously Page 6 of 8
9. TA Securities 5-May-17 A Member of the TA Group estimated 0 .7%, while the year-on-year growth of sales was 1.7% instead of 1.8%. Monthon-month retail sales rose for the third straight month, a sign that shoppers seem so far to have been unaffected by growing inflation in the bloc. Inflation in the 19-country currency bloc is estimated at 1.9% year-on-year in April, up from 1.5% in March and just short of the four-year high of 2.0% recorded in February. Retail sales increased in the month mostly for electrical goods and furniture which posted a 0.7% rise. Consumers also bought more food, drinks and tobacco which grew by 0.2% on the month. (Reuters) ECB’s Draghi Says Anxiety About Monetary Union is Misplaced European Central Bank President Mario Draghi launched a defense of European integration, saying the European Union is “being wrongly held responsible” for decisions that belong to individual countries. “In a world where Europe’s relative size is shrinking and where technology, the environment and the market are permeating national borders, the case for acting together as a way to regain capacity is stronger than ever,” Mr. Draghi said in prepared remarks in Lausanne, where he was accepting an award from the Jean Monnet Foundation for Europe, a mostly publicly funded organization that hosts conferences about European issues. “It is beyond question that we face challenges today that can only be addressed by countries in Europe acting together,” Mr. Draghi said. Mr. Draghi’s prepared remarks stayed clear of the monetary policy outlook, though he cited Europe’s monetary union as one area where anxiety about Europe is misplaced. Monetary union “is sometimes claimed to be the cause of low growth in parts of the euro area. Yet we have seen that for countries that implemented structural reforms and ran sound fiscal policies, the single currency has been no barrier to success,” he said. At its meeting last week, the ECB kept interest rates and other policies unchanged as expected. At a news conference, Mr. Draghi welcomed evidence of economic recovery but said policy makers hadn’t discussed reducing their stimulus, which includes a subzero deposit rate and a €60 billion-a-month ($65.5 billion) bond-purchase program. (The Wall Street Journal) U.K. Services Firms Surprise with Bounce, Homebuyers Cautious Britain's economy picked up some steam in April after slowing in early 2017, a closelywatched survey suggested, welcome news for Prime Minister Theresa May ahead of a national election in just over a month's time. But separate figures from the Bank of England showed caution on the part of house-buyers in March, adding to signs of a slowdown in the housing market as rising inflation squeezes consumers. The Markit/CIPS Purchasing Managers' Index (PMI) of Britain's giant services industry unexpectedly rose to a fourmonth high of 55.8 in April, above all the forecasts in a Reuters poll of economists. The reading was the second strongest since mid-2015, a good backdrop for May and her Conservative Party who are trying to convince voters that the opposition Labour Party cannot be trusted to run the economy after the June 8 election. At the same time, the survey included some warning signs for the economy, which has so far coped with the shock of last June's Brexit vote much better than expected by the Bank of England and private-sector economists before the referendum. Prices charged by service firms rose at the fastest pace since July 2008 and company executives reined in their optimism about the year ahead for a third month in a row. (Reuters) Page 7 of 8
10. TA Securities 5-May-17 A Member of the TA Group Share Buy-Back : 04 May 2017 Company AMPROP Bought Back Price (RM) Hi/Lo (RM) 26,600 0.81 0.82/0.805 Total Treasury Shares 13,411,800 Source: Bursa Malaysia 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. 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 8 of 8 We accept no We, our associates, directors, employees may have an interest in
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 04-May-17 2.13 2.56 6.17 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 2.36 2.04 5.12 0.96 0.58 1.23 10.8 22.7 17.7 15.8 23.8 27.6 19.8 11.3 34.9 13.5 10.8 22.4 5.6 3.5 1.8 7.4 3.5 2.9 2.44 2.70 7.00 -12.7 -5.2 -11.9 1.95 1.95 4.43 9.2 31.3 39.3 0.0 19.6 35.0 4.10 3.40 5.40 6.10 15.80 9.20 22.10 4.70 10.00 1.28 0.96 1.33 1.34 0.66 0.95 0.80 1.31 0.70 35.8 29.4 46.4 50.6 101.3 73.6 136.6 49.0 40.3 37.7 33.1 50.6 55.6 109.8 82.6 140.4 51.7 39.0 11.8 10.1 11.6 11.4 13.7 12.5 14.6 11.1 24.8 11.2 8.9 10.7 10.4 12.6 11.1 14.2 10.5 25.6 3.6 2.7 3.0 3.5 3.0 5.4 2.8 2.2 3.4 3.6 2.7 3.3 3.8 3.0 5.4 2.9 2.2 3.4 4.28 3.00 5.70 5.96 14.00 9.68 20.58 5.59 10.38 -1.4 -1.3 -5.3 -2.9 -1.1 -5.0 -2.9 -2.9 -3.7 3.60 2.08 3.90 4.11 12.70 7.50 18.60 4.43 8.20 17.2 42.3 38.5 40.8 9.0 22.7 7.4 22.6 22.0 13.4 23.8 25.3 28.4 2.5 12.2 1.3 15.3 13.0 0.44 1.26 5.28 3.50 1.02 2.00 2.19 5.90 0.49 1.55 5.49 3.27 0.58 1.90 1.49 5.58 0.80 0.68 1.06 1.09 1.22 na 1.11 0.12 5.7 14.6 31.6 16.8 9.6 12.6 11.9 44.3 5.7 13.1 36.4 20.9 9.9 12.5 11.8 45.8 7.7 8.6 16.7 20.8 10.6 15.8 18.5 13.3 7.7 9.6 14.5 16.7 10.3 15.9 18.6 12.9 0.0 2.2 2.3 2.7 1.0 2.8 1.4 4.2 2.3 2.2 2.3 2.7 1.0 2.8 1.4 4.2 0.51 1.35 5.34 3.61 1.03 2.08 2.30 6.13 -13.7 -6.8 -1.1 -3.0 -1.0 -3.8 -4.8 -3.8 0.36 0.80 4.64 3.07 0.41 1.42 1.41 5.02 22.2 58.3 13.8 14.0 151.9 40.8 55.3 17.5 1.1 20.0 10.5 9.4 77.4 17.6 26.6 0.3 1.99 2.00 0.46 15.4 15.6 12.9 12.7 5.0 5.0 2.40 -17.1 1.93 3.1 -1.0 14.44 18.00 15.41 21.08 0.52 0.57 69.6 93.1 77.5 20.7 101.9 19.3 18.6 17.7 4.8 4.7 5.3 5.1 15.30 18.74 -5.6 -3.9 12.38 14.58 16.6 23.5 3.7 9.9 2.44 7.60 24.88 82.20 3.33 1.80 4.88 1.02 2.23 9.59 27.41 88.66 3.76 2.74 4.17 1.10 0.49 0.35 0.36 0.37 0.50 0.69 0.43 0.59 6.5 35.9 120.5 293.6 22.3 25.1 12.7 9.3 7.5 40.5 148.1 326.2 24.7 25.3 15.8 12.8 37.5 21.2 20.6 28.0 14.9 7.2 38.5 11.0 32.3 18.8 16.8 25.2 13.5 7.1 30.9 8.0 0.8 3.9 2.8 3.3 4.5 4.4 0.9 4.9 0.9 5.0 3.0 3.4 5.1 4.4 1.0 4.9 3.00 9.53 27.00 83.68 3.43 2.04 4.88 1.07 -18.7 -20.3 -7.9 -1.8 -2.9 -11.8 0.0 -4.7 2.11 7.30 22.16 74.12 2.11 1.43 4.14 0.78 15.6 4.1 12.3 10.9 58.1 25.9 17.8 30.8 -5.1 3.7 6.0 5.1 30.6 4.0 12.7 28.3 45.40 52.08 1.05 198.6 187.4 22.9 24.2 4.4 4.4 55.64 -18.4 40.61 11.8 2.8 9.82 5.76 10.34 6.10 1.35 1.27 45.0 25.7 51.0 27.9 21.8 22.4 19.2 20.7 0.5 1.4 0.6 1.6 10.00 6.07 -1.8 -5.1 7.50 4.17 31.0 38.0 23.6 27.5 2.80 0.13 3.81 0.10 0.72 1.33 22.1 0.2 24.6 0.3 12.7 65.9 11.4 43.0 5.7 0.0 6.8 0.0 3.42 0.15 -18.1 -10.3 2.73 0.05 2.6 160.0 -5.4 160.0 6.19 4.20 6.40 4.61 0.78 0.52 13.9 13.3 17.9 16.5 44.5 31.5 34.5 25.5 0.7 1.5 0.7 1.8 6.79 4.37 -8.8 -3.9 5.78 3.85 7.1 9.1 -2.5 0.5 4.94 5.68 1.90 4.59 2.11 6.05 6.80 1.90 5.05 2.55 0.57 0.13 0.30 -0.22 0.28 20.0 35.8 16.2 26.6 4.3 24.2 40.5 18.3 30.2 7.1 24.7 15.9 11.7 17.3 49.2 20.4 14.0 10.4 15.2 29.9 1.8 3.2 2.6 2.9 0.5 2.2 3.6 2.9 3.3 0.8 5.03 7.07 2.73 5.45 2.64 -1.8 -19.7 -30.4 -15.8 -20.1 3.81 5.62 1.88 4.20 1.96 29.7 1.1 1.1 9.3 7.7 2.3 -13.8 -10.0 -14.2 -10.6 INDUSTRIAL SCIENTX SKPRES 8.20 1.26 8.50 1.75 0.57 0.48 67.9 9.1 78.0 14.1 12.1 13.9 10.5 9.0 2.6 3.5 2.9 5.4 8.99 1.44 -8.8 -12.5 5.90 1.12 39.0 12.5 22.4 -2.3 MEDIA ASTRO MEDIA PRIMA STAR 2.69 1.19 2.32 3.20 0.85 1.95 1.03 0.69 0.62 13.2 7.7 15.0 14.5 8.0 15.8 20.3 15.4 15.5 18.6 14.9 14.7 4.6 5.2 7.8 4.8 5.4 7.8 3.01 1.52 2.70 -10.6 -21.7 -14.1 2.56 1.00 2.20 5.1 19.0 5.5 3.5 3.5 3.6 OIL & GAS EATECH MHB MISC PANTECH PCHEM SENERGY UMWOG UZMA 0.62 1.00 7.42 0.63 7.13 1.97 0.69 1.76 0.45 0.95 7.65 0.69 7.91 2.02 0.81 1.40 1.04 1.81 0.82 1.28 1.07 2.41 2.00 1.39 11.5 -1.2 56.8 4.1 34.7 5.3 -14.7 11.3 11.9 1.3 54.7 5.0 39.3 4.6 -12.4 12.2 5.4 na 13.1 15.1 20.6 37.5 na 15.6 5.2 76.0 13.6 12.5 18.1 42.5 na 14.4 0.0 0.0 4.0 2.9 2.7 0.0 0.0 0.0 0.0 0.0 4.0 3.2 2.7 0.0 0.0 0.0 1.18 1.23 8.38 0.67 7.80 2.10 1.04 2.02 -47.5 -19.1 -11.5 -6.0 -8.6 -6.2 -33.7 -12.9 0.45 0.84 6.88 0.44 5.95 1.29 0.61 1.30 39.3 18.5 7.8 43.7 19.8 52.7 14.0 35.4 0.0 8.7 1.0 40.4 2.1 21.6 -21.1 3.5 BANKS & FINANCIAL SERVICES AFG 4.22 AFFIN 2.96 AMBANK 5.40 CIMB 5.79 HLBANK 13.84 MAYBANK 9.20 PBBANK 19.98 5.43 RHBBANK BURSA 10.00 CONSTRUCTION BPURI GADANG GAMUDA IJM SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N 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
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 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 1.84 3.08 4.55 24.64 9.30 6.20 1.53 3.88 3.93 22.75 8.24 7.52 1.79 0.46 1.09 0.91 1.25 0.50 6.3 13.7 18.7 111.8 30.8 32.7 11.1 15.7 21.1 119.1 35.3 34.5 29.0 22.5 24.3 22.0 30.2 18.9 16.6 19.6 21.6 20.7 26.3 18.0 2.7 2.3 2.2 2.2 2.4 2.6 2.7 2.6 2.6 2.4 3.0 2.7 2.52 3.70 4.81 25.50 9.55 6.51 -27.0 -16.8 -5.4 -3.4 -2.6 -4.8 1.31 3.00 4.07 22.62 7.10 5.53 40.5 2.7 11.8 8.9 31.0 12.1 18.7 -9.4 3.4 2.7 14.8 3.3 0.70 1.08 0.87 2.08 1.50 0.75 3.68 3.45 0.69 1.07 1.00 2.10 1.60 0.80 4.10 3.40 0.65 0.66 0.33 0.93 0.71 0.29 0.67 0.49 3.4 20.0 7.3 14.7 14.5 6.4 25.6 27.2 7.0 17.4 11.2 15.3 12.5 9.7 22.8 29.1 20.3 5.4 11.9 14.1 10.3 11.8 14.4 12.7 10.0 6.2 7.7 13.6 12.0 7.8 16.2 11.9 5.7 3.7 4.0 3.4 4.0 1.3 3.8 3.5 5.7 3.2 4.6 3.6 3.7 1.3 3.8 3.5 0.83 1.43 1.05 2.46 1.70 1.00 3.77 3.50 -15.2 -24.6 -17.6 -15.5 -11.8 -25.0 -2.4 -1.4 0.68 1.05 0.86 1.85 1.34 0.69 2.80 2.84 2.9 2.9 0.6 12.6 11.9 8.7 31.4 21.4 0.7 -4.4 -13.5 6.7 4.9 -6.3 17.6 15.0 1.71 1.49 1.86 1.72 0.54 0.59 8.9 8.1 10.1 8.6 19.3 18.4 16.9 17.3 5.2 5.6 5.9 6.0 1.84 1.72 -7.1 -13.4 1.59 1.44 7.5 3.5 -0.6 -2.6 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.24 24.12 19.08 13.90 1.50 1.45 20.19 19.02 17.19 1.81 0.72 0.74 0.76 1.02 0.59 6.9 98.4 88.2 131.9 8.8 8.3 102.3 101.3 130.8 10.6 17.9 24.5 21.6 10.5 17.1 15.0 23.6 18.8 10.6 14.2 5.6 3.0 3.2 4.2 6.7 4.7 3.2 3.7 2.8 6.7 1.80 25.70 22.66 14.90 1.64 -31.1 -6.1 -15.8 -6.7 -8.5 1.14 22.16 18.10 13.00 1.38 8.8 8.8 5.4 6.9 8.7 -9.5 1.3 -10.4 0.0 0.7 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.13 5.01 6.48 6.46 5.25 4.95 5.95 6.95 1.26 0.95 0.71 0.68 16.7 20.8 25.1 21.4 17.6 21.1 25.4 22.3 30.7 24.0 25.8 30.1 29.1 23.8 25.5 29.0 1.7 4.2 3.1 3.0 1.7 4.2 3.1 3.1 5.99 5.19 6.49 6.90 -14.4 -3.5 -0.2 -6.4 4.11 4.36 5.36 5.81 24.8 14.9 20.9 11.2 8.7 3.7 8.4 8.6 TECHNOLOGY Semiconductor & Electronics IRIS 0.19 INARI 2.03 MPI 12.10 UNISEM 3.38 0.14 2.35 13.15 3.55 1.42 0.78 0.51 0.83 -1.2 10.5 94.2 26.9 0.9 na 12.6 19.3 115.7 12.8 29.1 12.5 21.0 16.2 10.5 11.6 0.0 2.0 2.2 3.6 0.0 2.4 2.2 3.6 0.24 2.13 12.76 3.43 -20.8 -4.7 -5.2 -1.5 0.10 1.28 7.02 2.20 90.0 58.3 72.4 53.6 72.7 22.3 63.3 43.2 3.36 7.95 3.02 8.10 1.17 1.46 33.5 17.2 34.9 17.5 10.0 46.1 9.6 45.5 1.2 1.3 1.5 1.3 3.42 8.10 -1.8 -1.9 1.91 5.76 75.9 38.0 46.7 31.2 1.76 3.88 1.88 4.51 0.81 0.68 15.4 19.3 21.5 17.4 11.4 20.1 8.2 22.3 3.1 3.7 4.0 3.4 1.87 4.59 -5.9 -15.5 1.23 3.74 43.1 3.7 10.7 -9.8 PROPERTY GLOMAC HUAYANG IBRACO IOIPG MAHSING SNTORIA SPSETIA SUNWAY REIT SUNREIT CMMT TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 20.45 OCBC 10.16 UOB 23.30 PLANTATIONS WILMAR IFAR 3.47 0.49 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 21.40 8.50 23.60 1.22 1.12 1.08 173.8 87.8 195.7 190.2 11.8 92.5 11.6 209.4 11.9 10.8 11.0 11.1 2.9 5.7 3.0 2.9 6.7 3.0 20.8 10.2 23.5 -1.8 -0.6 -0.8 14.63 8.84 17.41 39.8 23.8 33.8 17.9 13.9 14.2 3.45 0.53 0.91 1.12 28.9 3.9 31.1 4.3 11.2 11.5 2.3 2.0 2.6 2.1 4.0 0.6 -13.3 -17.6 2.96 0.44 17.2 11.4 -3.3 -6.7 12.0 12.5 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. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
13. TA Securities A Member of the TA Group SECTOR REPORT Friday , May 05, 2017 FBM KLCI: 1,758.67 Sector: Finance MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Banking Sector BNM Removes Reserve Fund Requirement THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Team Coverage Tel: +603-2167 9610 liwong@ta.com.my New rules will help ease capital burden According to Bank Negara Malaysia (BNM), banking institutions are no longer required to maintain a reserve fund. The new rule takes effect on 3 May 2017. We are positive on the removal of this reserve fund requirement on Capital Funds as it would help ease the burden of having to already meet strict Basel III capital rules. To recap, in addition to the Basel III capital ratio requirements, banks are also required to set aside additional 2.5% as capital conservation buffer. The counter-cyclical buffer has yet to be introduced by BNM. Expect banks to use reserves to maintain capital buffers We note that this new rule would release these reserves as distributable capital back into the system. We do not foresee this new BNM rule to have any impact on the capital ratio, such as CET 1 ratio of the banks. However, we also do not envisage banks to distribute this freed up reserves as dividends back to shareholders any time soon as banks continue to focus on keeping adequate capital buffers. In the announcement, BNM explained that, “with the phasing in of the Basel capital conservation buffer, the need for banks to maintain the reserve fund is no longer necessary given that both requirements are intended for the same purpose”. Maintain overweight We reiterate our overweight stance on the sector, premised on a more sanguine macro outlook. Operationally, we note that consumer spending remains resilient and supportive of loan growth while optimism among businesses have improved. Elsewhere, the banking system’s asset quality remains intact, backed by unchanged gross impaired loans ratio of 1.2% and LCR in excess of 100%. We believe the overall debt profile for the country has improved. Total household debt as a proportion of gross domestic product (GDP) was lower at 88.4% (from 89.1% in 2015). Other drivers for earnings growth include potential hikes in the overnight policy rate (OPR), leading to margin expansion. We expect the increase in rate to augur well for the banking sector as margins are compressed by competitive pressures. BUY maintained on Public Bank, Hong Leong, AMMB, CIMB and Affin. Reiterate HOLD on Maybank and Alliance Financial Group (AFG) and SELL on RHB Bank. Page 1 of 2 TA Research Team Coverage
14. TA Securities 5-May-17 A Member of the TA Group Table 1 : Peers comparison Ma yba nk CIMB Publ i c Ba nk Hong Leong AMMB RHB Bank Al l ia nce Affin Simple average Price (RM) 9.20 5.79 19.98 13.84 TP (RM) 9.20 6.10 22.10 15.80 HOLD BUY BUY BUY 5.40 5.43 4.22 2.96 5.40 4.70 4.10 3.40 BUY SELL HOLD BUY P/BV Ma yba nk CIMB Publ i c Ba nk Hong Leong AMMB RHB Ca p Al li a nce Affi n Simple average FY17 (x) 1.2 1.1 2.1 1.2 1.0 1.0 1.2 0.8 1.2 Mkt Cap RM mil 93,777.4 51,348.0 77,152.8 28,402.4 Net Profit FY17 FY18 (sen) (sen) 7,517.4 8,440.7 4,486.3 4,933.4 5,272.9 5,421.8 2,077.9 2,253.7 Profit growth FY17 FY18 (%) (%) 11.5 12.3 25.9 10.0 1.3 2.8 9.2 8.5 FY17 (x) 12.5 11.4 14.6 13.7 FY18 (x) 11.1 10.4 14.2 12.6 16,276.7 21,774.3 6,435.1 5,751.0 37,614.7 1,399.4 1,963.5 546.1 570.9 2,979.3 7.5 16.8 4.6 1.2 10.9 9.0 5.5 5.4 12.8 8.5 11.6 11.1 11.8 10.1 12.1 10.7 10.5 11.2 8.9 11.2 FY18 (sen) 50.0 22.3 58.0 41.0 18.0 12.0 15.0 8.0 28.0 Div yield FY17 FY18 (%) (%) 5.4% 5.4% 3.5% 3.8% 2.8% 2.9% 3.0% 3.0% 3.0% 3.3% 2.2% 2.2% 3.6% 3.6% 2.7% 2.7% 3.3% 3.4% ROE FY18 (x) 1.2 1.0 1.9 1.2 0.9 0.9 1.2 0.8 1.1 FY17 (%) 10.7 9.7 14.8 9.5 8.9 8.7 11.3 7.3 10.1 1,524.8 2,071.7 575.4 644.1 3,233.2 ROA FY18 (%) 11.3 10.1 13.9 9.8 9.1 8.6 11.1 8.8 10.3 FY17 (%) 1.0 0.9 1.4 1.1 1.0 0.8 1.0 0.8 1.0 DPS FY18 (%) 1.1 0.9 1.3 1.1 1.1 0.8 1.0 0.9 1.0 FY17 (sen) 50.0 20.2 56.0 41.0 16.0 12.0 15.0 8.0 27.3 PER Source: TA Research, Bursa M alaysia, B loomberg 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
15. TA Securities COMPANY UPDATE Friday , May 05, 2017 A Member of the TA Group FBMKLCI: 1,758.67 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 (+10.2%) Leveraging on Existing Capabilities Last Traded:RM24.88 HOLD THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Tel: +603-2072 1277 ext. 9602 damia@ta.com.my We left the F&N analyst briefing yesterday with a more optimistic outlook for the company’s FY17 performance. Reasons being i) growing demands from the F&B Thailand division and exports pillars, ii) continuous efforts in reducing operating expenses as well as iii) stabilisation of MYR/THB exchange rate. We adjust our FY17 and FY18 earnings higher by 17.5% and 19.0% respectively and upgrade DDM-derived target price to RM27.41/share. Maintain HOLD. Deepening Market Penetration 1HFY17 saw a decline in F&B Malaysia revenue of 6.4% YoY to RM1.2bn due to weak consumer sentiment in Malaysia. Management guided that moving forward, F&N will focus on deepening and widening market penetration for Malaysia route-to-market distribution. This is by leveraging on the existing 80,000 distribution outlets, which are currently serving soft drinks to also serve F&N’s dairies products. Currently, only 55,000 outlets are serving dairies products. This initiative is expected to complete by the end of FY17. Meanwhile, F&B Thailand saw a revenue increase of 10.1% to RM892.2mn YoY on account for growing demand for F&N’s core products (condensed milk and evaporated milk). Looking forward, management guided that F&N will strive to sustain the sales momentum through effective branding and consumer trade campaigns. In our forecast, we continue to project F&N’s FY17 revenue to increase by less than 1% YoY in tandem with the increase in revenue for 1HFY17. This is after taking into account the adoption of competitive pricing approach in Malaysia to withstand the current weak consumer spending and currency volatility. 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 (%) 13.0 12.5 12.0 FNH 3689 Main Board 366.5 9,118.5 27.00/22.16 371.5 11.5 0.4 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 17.5 19.0 441.8 543.0 387.6 426.8 114.0 127.2 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 Figure 2: THB/MYR Rate is Stabilising THB/MYR www.taonline.com.my FY17 Net cash 20.3 13.2 5.6 4.4 FY18 Net cash 22.2 15.2 6.3 3.9 FNH FBM KLCI 2.3 0.7 4.7 4.4 2.0 6.7 12.2 6.1 (12-Mth) Share Price relative to the FBM KLCI 11.5 11.0 10.5 10.0 Source: Bloomberg Source: Bloomberg, TA Research 2 Page 1 of 4
16. TA Securities 5-May-17 A Member of the TA Group Profit is Largely Determined by Raw Material Prices As far as profit is concerned , management guided that FY17-18 profit will largely be determined by prices of raw materials mainly sugar and milk-based products. For F&B Malaysia, the increase in sugar price to RM3,100/tonne (+24.0%) in Nov-16 from RM2,500/tonne level a year ago is expected to debt profit margin. On the flip side, operational costs for F&B Thailand is expected to contract further if both sugar price and skim-milk powder prices continue on the downtrend (see Figure 1). Note that the global sugar price has dropped 19.8% YTD while the Skim-milk powder price has decreased by 24.4% YTD to USD1,982/tonne. Figure 1: Declining Global Skim Milk Powder and Sugar Prices 2,700 24.0 2,500 22.0 USD/MT 18.0 2,100 16.0 1,900 USd/lb 20.0 2,300 14.0 Skim Milk Powder (LHS) Apr-17 May-17 Mar-17 Jan-17 Feb-17 Dec-16 Nov-16 Oct-16 Sep-16 Jul-16 Aug-16 Jun-16 Apr-16 May-16 10.0 Mar-16 1,500 Jan-16 12.0 Feb-16 1,700 Global Sugar (RHS) Source: Global Dairy Trade and Bloomberg, TA Research Management is wary of the fluctuations of raw material costs therefore hedging forward contracts where necessary to mitigate the risk. Other than that, management has entered into a quarterly contract with competitive pricing from F&B Thailand canned packaging supplier hence is expected to further reduce COGS for F&B Thailand. Our major concern is the price of sugar imposed for F&B Malaysia as sugar is heavily used in F&N’s production. Taking these into consideration, we believe that total costs of goods sold (COGS) for F&N will increase by 2.1% whereby majority of the costs increase will come from F&B Malaysia division. Growing the Export Pillar Apart from F&B Malaysia and F&B Thailand operations, management has also shared its plan to grow an existing third pillar which exports F&N products from Malaysia and Thailand. F&N mainly sells 100Plus and condensed milk brands overseas for the time being. Note that this pillar has so far contributed about 10% of F&N’s total revenue and less than 10% of profit. It has been growing at more than 20% a year and is expected to continue the momentum in the coming years. Management is hoping to achieve export sales of RM500mn by 2020 mainly coming from F&B Malaysia production. We are optimistic on the strategy as F&N could expand its market to more countries. Note that profit margins for export business is in a single digit level as guided by management. Even that, this will allow F&N to utilise any remaining capacity to drive sales growth. Currently F&N capacity is operating at an average of 90% for both Malaysia and Thailand plants. Page 2 of 4
17. TA Securities 5-May-17 A Member of the TA Group Forecast Overall , we increase our earnings forecasts by 17.5% and 19.0% for FY17 and FY18 respectively. This is after reducing operating expenses by 7% YoY to be in line with reduction in costs-to-serve strategy and reduction in tax rate for FY17 and FY18 to 10% from 13% estimates taking into consideration tax incentives as guided by management. Valuation We increase our target price higher to RM27.41/share (previously RM26.14/share) based on DDM valuation with HOLD call. Note that we are expecting a GDPS of 70.0sen/share for FY17 with 2.6% dividend yield. Reasons for our call are i) continued growth from F&B Thailand and exports pillars, ii) continuous efforts in reducing operating expenses as well as iii) stabilisation of MYR/THB exchange rate. 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 4,204.5 4,256.7 4,361.6 372.0 523.7 584.5 693.8 835.6 287.2 442.9 490.9 603.4 751.7 0.0 0.0 0.0 0.0 0.0 233.4 385.4 441.8 543.0 638.9 334.9 343.3 441.8 543.0 638.9 91.4 93.7 120.5 148.2 174.3 26.9 2.5 28.7 22.9 17.7 27.2 26.6 20.6 16.8 14.3 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 442.9 490.9 603.4 751.7 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) 0.0 584.5 98.9 0.0 9.9 (18.3) 0.0 693.8 102.9 0.0 8.4 (27.4) 0.0 835.6 88.9 (2.6) (44.9) (168.5) 337.8 (27.8) (1.3) (60.7) 13.4 488.4 (3.0) 0.0 (49.1) 0.0 532.5 (4.2) 0.0 (60.3) 0.0 629.3 (8.5) 0.0 (112.8) 0.0 714.3 (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 64.5 144.5 157.8 Page 3 of 4 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 Assets 1,504.0 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 1,668.3 521.9 547.8 658.1 14.5 1,742.3 528.4 541.4 554.6 568.2 802.6 960.4 14.5 14.5 1,900.1 2,084.5 Total Assets 3,022.6 3,205.9 3,347.5 3,574.7 3,833.7 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 14.1 767.4 729.9 26.2 14.1 770.1 738.9 22.5 14.1 775.5 757.1 18.8 14.1 790.0 Total Liabilities 1,145.6 1,216.7 1,173.1 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 1,821.2 2,089.4 2,380.1 1,876.8 1,989.0 2,174.2 2,442.4 2,733.1 0.2 0.2 0.2 0.2 0.2 1,877.0 1,989.2 2,174.4 2,442.6 2,733.3 Total Equity & Liabilities 3,022.6 VALUATION RATIOS FYE Sep 30 (RMmn) PER (x) P/BV (x) NTA/share (RM) FCF/share (RM) FCFE/share (RM) ROCE (%) ROE (%) ROA (%) Net Debt/Equity 3,205.9 3,347.5 1,132.2 1,100.4 3,574.7 3,833.7 2015 2016 2017E 2018F 2019F 30.0 29.3 22.7 18.5 15.7 5.4 5.1 4.6 4.1 3.7 4.76 5.09 5.59 6.32 7.12 0.26 0.89 1.04 1.31 1.55 78.22 109.91 90.93 119.42 145.54 12.7 17.8 19.0 21.3 24.1 12.4 19.4 20.3 22.2 23.4 7.7 12.0 13.2 15.2 16.7 Net cash Net cash Net cash Net cash Net cash
18. TA Securities 5-May-17 A Member of the TA Group ( T HI S P AGE I S I NT E N T I ON AL L Y L E FT B L ANK) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. 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 4 of 4
19. NEW LISTING TA Securities Friday , May 05, 2017 FBMKLCI: 1,758.67 Sector: Technology A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 CabNet Holdings Berhad Fair Value: RM0.63 ACE Market Listing Securing Your Facilities Not Rated THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Paul Yap, CFA Tel: +603-2167 9603 paulyap@ta.com.my 1.0 Background Cabnet Systems was founded by Tay Hong Sin, Tan Boon Siang and Lee Kok Hui in 1995. Initial activities were to carry out structured cabling works for companies in the commercial and industrial sectors in Johor. Since then, it has expanded into the provision of building management solutions which comprises structured cabling works and extra-low voltage (ELV) systems. Complementary to its business, it is also involved in the provision of IT services. The group’s main customers are building contractors whom have been engaged to carry out building or construction works. Table 1: Services Offered Service Structured cabling works Description System of cabling and associated hardware that provides telecommunications infrastructure for data transfer and voice transmission. Integrates building automation systems, IT systems and communication systems within one cabling infrastructure. Systems that operate on less than 50 AC voltage and are used in buildings. ELV systems offered include CCTV, ACS, HD SMATV system, PA system, Intercom system and ISS. Server virtualisation, data centre solutions, network design and deployment, network management and network security, enterprise messaging solution and wireless networking solution. ELV IT services Source: Company, TA Securities Figure 1: FY16 Revenue Split (%) IT services 24% Structured cabling works 19% ELV Systems 57% Source: Company, TA Securities Page 1 of 7 www.taonline.com.my Share Information Listing Enlarged Share Capital (mn) Market Cap @ RM0.56 (RM mn) Issue price (RM) Oversubscription rate Estimated free float (%) Tentative Listing Dates Closing of application period Balloting of Applicants Allotments of shares Listing ACE Market 130.0 72.8 0.56 29.8 8-May-17 11-May-17 18-May-17 22-May-17 Ratio & Analysis NAV per share (post IPO) (sen) Price to NAV(x) Proforma Gearing (x) 0.28 2.0 0.09 Utilisation of Proceeds Working capital R&D expenditure Repayment of borrowings Estimated listing expenses % 44.7 4.3 25.5 25.5
20. TA Securities 5-May-17 A Member of the TA Group 1 .0 Key Management The group is managed by two of its initial founders, Tay Hong Sing and Tan Boon Siang as CEO and Deputy CEO. Both individuals have over 26 years of relevant experience. Tay Hong Sing graduated with a Diploma in Mechanical and Automotive Engineering from Tunku Abdul Rahman College. His previous stints include Dai Hwa Industries (M) Berhad and MCSB Systems (M) Berhad, where he gained exposure to structured cabling. Tan Boon Siang graduated with a Diploma in Electronic Engineering from Tunku Abdul Rahman College. Before founding CabNet, his previous employments include Sigma Technologies Sdn Bhd and Advantage Systems Sdn Bhd. Table 2: Key Management Name Tay Hong Sing Tan Boon Siang Pauline Loh Yen Ping Yong Thiam Yuen Tan Ying Meng Koh Thain Lin Sim Yian Fei Kong Tze Senn Designation Executive Director/Chief Executive Officer Executive Director/Deputy Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Technology Officer/Head of IT Services Head of Business Development Head of ELV Systems Head of Structured Cabling Works Source: Company, TA Securities 2.0 IPO Structure The IPO involves the public issue of 21.0mn new shares at an issue price of RM0.56/share. This comprises: 1) 7.0mn to the Malaysian public; 2) 10.0mn by private placement to identified investors and 3) 4.0mn to eligible directors, key management personnel and employees. At its issue price, the group is valued at a market cap of RM72.8mn. Gross proceeds will be utilised for working capital, R&D expenditure, repayment of borrowings and estimated listing expenses. Table 3: Utilisation of Proceeds Description Working capital – purchase of equipment for projects R&D expenditure Repayment of bank borrowings Estimated listing expenses Amount (RMmn) 5.26 Percentage (%) 44.7 0.50 3.00 4.3 25.5 3.00 25.5 11.76 100.0 Timeframe Within 24 months Within four months Within one month Source: Company, TA Securities Table 4: Changes in Substantial Shareholders Tay Hong Sing Tan Boon Siang NetPosa NetPosa China Liu Guang Before IPO (%) Direct Indirect 29.9 29.9 23.9 23.9 23.9 After IPO (%) Direct Indirect 25.1 25.1 20.0 20.0 20.0 Source: Company, TA Securities Page 2 of 7
21. TA Securities 5-May-17 A Member of the TA Group 3 .0 Investment Thesis 3.1 Industry Outlook ELV and structured cabling are classified under electrical services, which also includes electrical wiring and fittings projects. Electrical services have grown at a CAGR of 10.5% between 2006 and 2015. A drop in value in 2015 coincided with a decline in the construction sector – due to a slowdown in the property market. Estimated to be at 20% the value of awarded electrical services works, ELV and structured cabling projects were valued at 926.8mn in 2015. This translates into an implied market share of 3.1% for Cabnet. Backed by private investments and government policies to spur growth, Smith Zander expects the ELV and structured cabling works industry to recover and grow to RM1.1bn in 2018 or an implied CAGR of 5.9%. Additionally, demand is also expected to be driven by safety & security concerns and the adoption of intelligent & integrated building automation solutions. Figure 2: Value of Awarded Electrical Services Project Electrical works RMmn ELV and structured cabling 14,000.0 12,000.0 10,000.0 8,000.0 6,000.0 4,634.1 4,000.0 1,893.7 2,000.0 926.8 378.7 0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Smith Zander, Construction Industry Development Board 3.2 Proven Capabilities The group is positioned as a total solutions provider in relation to structured cabling works, ELV systems and IT services. It provides clients the flexibility to customise solutions based on the type of properties, development scale and allocated budget. Supporting the team is a total of 41 project delivery employees, consisting of 8 engineers and 33 technicians. This reduces its dependence on outsourced or external services. We have included notable projects completed in Table 5, 6 and 7 below. It has long-standing relationships with customers such as Kiswire, Infineon Technologies (Malaysia), Tiong Nam Logistics, Flectronics Technology (Malaysia) and Takenaka. That said, with a wide customer base of 300 clients, these individuals contributed only 5.6-16.7% of total revenue during FY15-16. Table 5: Past Structured Cabling Projects Project Platino Apartments, Johor DoubleTree Hotel by Hilton, Johor Johor Port, Johor Infineon Technologies Sdn Bhd, Melaka Holiday Villa Hotel, Johor D’Summit Apartments, Johor Forest City Hotel and Hotel Apartment Duration June 2013 to May 2015 December 2013 to September 2014 September 2014 to April 2015 April 2015 to June 2015 August 2014 to December 2015 October 2013 to May 2016 June 2016 to September 2016 Source: Company, TA Securities Page 3 of 7 Contract Value (RMmn) 0.58 1.52 1.05 0.95 0.85 4.03 1.60
22. TA Securities 5-May-17 A Member of the TA Group Table 6 : Past ELV Systems Projects Project DoubleTre Hotel by Hilton, Johor Platino Apartments, Johor Golden Sands Apartment, Johor Austin Regency Apartment, Johor DoubleTre Hotel by Hilton, Johor Summerscape Condominium, Johor Johor Port, Johor Holiday Villa Hotel, Johor Aeon Mall, Perak D’Summit Apartments, Johor One Sentral Serviced Apartments, Johor Aeon Mall at Tebrau City, Johor Forest City Hotel and Hotel Apartment Duration April 2013 to September 2014 June 2013 to March 2016 August 2013 to September 2014 August 2013 to May 2015 December 2013 to September 2014 March 2013 to September 2015 March 2015 to November 2015 August 2014 to December 2015 January 2015 to December 2015 October 2013 to May 2016 May 2014 to December 2015 December 2014 to September 2016 June 2016 to September 2016 Contract Value (RMmn) Duration Contract Value (RMmn) February 2014 to March 2014 0.92 1.22 2.02 1.10 1.02 3.63 1.32 2.22 2.80 2.80 5.47 1.95 3.07 3.02 Source: Company, TA Securities Table 7: Past IT Services Projects Project Pengerang Independent Terminals Sdn Bhd’s data centre and office building, Johor Clay Industries Sdn Bhd’s factory block, Johor Biocon Sdn Bhd’s data centre, Johor PGEO Edible Oils Sdn Bhd’s factory block, Johor Arrow Electronics Asia (S) Pte Ltd’s project for factory block located at Tanjung Pelepas Plant, Johor Johor Corporation’s office building, Johor Flour Daniel (M) Sdn Bhd’s data centre, Johor Recreation centre in Gelang Patah, Johor Site office located at RAPID Raw Water Treatment Plant in Pengerang, Johor Johor Corporation’s office building in Ulu Tiram, Johor Factory buildings in Gelang Patah, Johor Factory buildings in Senai, Johor April 2014 to June 2014 July 2014 to November 2014 0.40 0.80 May 2015 to July 2015 0.11 May 2015 to July 2015 0.70 June 2015 to September 2015 July 2015 to September 2015 April 2016 to June 2016 April 2016 to May 2016 April 2016 to July 2016 June 2016 to October 2016 January 2016 to April 2016 Source: Company, TA Securities Page 4 of 7 0.23 0.13 0.16 0.12 0.63 1.04 0.42
23. TA Securities 5-May-17 A Member of the TA Group 3 .3 Collaboration with NetPosa The group entered into a strategic partnership and collaboration agreement with its Pre-IPO investor, NetPosa. NetPosa is a wholly owned subsidiary of NetPosa China. NetPosa China is headquartered in Beijing, and is engaged in video processing technologies and providing video monitoring solutions and high-quality video storage products. It has offices across 16 provinces in China and is listed on the Shenzhen Stock Exchange with a market cap of RM10.8bn. Its investment was made at the request of the group, to demonstrate NetPosa’s commitment under the collaboration agreement. Via its collaboration with NetPosa, the group intends to offer video monitoring solutions for township, district and state level in Malaysia. It also provides time and cost savings as the group would not need to develop new features such as vehicle count, crowd detection and illegal parking detection. Additionally, it can leverage on its business relationship to secure new projects. Being the sole partner of NetPosa in Malaysia, it was awarded an RM4.9mn contract by Country Garden Pacificview Sdn Bhd for the Forest City Hotel, Johor. Table 8: Difference between CISS and NetPosa CISS (internal integrated security solutions software) Integration capability Integration of CCTV and ACS at a single location (only wired) Features ANPR and visitor management Application Buildings and facilities NetPosa China’s Products Integration of multiple security systems (i.e. CCTV and ACS) at multiple locations (wireless or wired) 36 distinctive features (e.g. vehicle count, people count, crowd detection, illegal parking and etc.) Township, district and state level Source: Company, TA Securities 3.4 Widening Geographical Exposure Majority of the group’s business is derived from Johor, making up 78.8-89.7% of sales between FY14 and FY16. Within Johor, apart from the residential property and infrastructure segments, the group seeks to bid for more projects for data centres, seaports and in the oil & gas sector. Widening its geographical exposure, it will also focus on tendering for projects in the Klang Valley and Penang. This task has been ensued to Yong Thiam Yuen, the Group’s Chief Operating Officer. In 2016, a business development manager was recruited to pursue new opportunities in Penang. It also plans to hire two additional sales and marketing executives to be based in Puchong. 4.0 Risks 4.1 Competition The group operates in a competitive landscape, with a large pool of players competing for public and private projects. There are over 100 industry players in Malaysia’s ELV and structured cabling industry. Nevertheless, there are barriers to entry for large projects, where considerations include historical track record, financial strength and ownership of Certification of Registration issued by the CIDB. Cabnet is registered as Grade 7 and Grade 3 contractor companies. Its competitors include Advantis Network & Systems Sdn Bhd, A.F.S. Engineering (Malaysia) Sdn Bhd, Bond M&E Sdn Bhd, Cyberlan Integral Sdn Bhd, EVDynamic Sdn Bhd, VADS Lyfe Sdn Bhd, GSF Solutions Sdn Bhd, KUB Telekomunikasi Sdn Bhd, MCC Technique Sdn Bhd, Methods Alliance Engineering Sdn Bhd, Metronic Global Berhad, S.A.S. Eltel Sdn Bhd, SKLA Engineering Sdn Bhd and System Communication Engineering Sdn Bhd. Page 5 of 7
24. TA Securities 5-May-17 A Member of the TA Group 4 .2 Ability to Secure New Contracts Being project based, the sustainability and growth of the group depends on management’s ability to secure projects on a continuous basis. Its current order book stands at RM33.7mn, with RM7.4mn in new contracts secured in 2017. 4.3 Project Cost Overruns and Delays Most contracts contain a liquidated and ascertained damages clause which renders the group liable for failures to meet completion fate of projects. Project cost overruns may arise from unanticipated modification works due to customer requests or unscheduled delays due to readiness of site. Additionally, costs incurred as a result of delay or cancellation of projects by customers may not be recovered. 5.0 Financial Highlights Contributed by ELV systems and structured cabling works, the group enjoyed good revenue and PAT growth of 49.3% and 57.3% between FY14 and FY16. We expect it maintain its growth trajectory, projecting a sales CAGR of 6.5% YoY over the next three years. This, we assume, will be driven by its collaboration with NetPosa and plans to bid for projects within and outside Johor. Despite higher revenue projections, we expect lower reported profits in FY17 due to the expiration of its pioneer status in August 2017 and one-off listing expenses of RM3.0mn. Thereafter, we expect growth to resume, with higher margins from increased ELV systems and structured cabling works contributions. Figure 3: Revenue Projection Figure 4: PAT Projection RMmn RMmn 70.0 10.0 61.3 57.6 60.0 50.8 54.1 8.1 8.0 50.0 7.0 39.6 40.0 9.1 9.0 6.4 5.8 6.0 34.1 5.0 30.0 5.7 4.1 4.0 3.0 20.0 2.0 10.0 1.0 0.0 0.0 FY14 FY15 FY16 FY17F FY18F FY19F Source: Company, TA Securities FY14 FY15 FY16 Source: Company, TA Securities 6.0 Valuation We value CabNet at a TP of RM0.63/share – based on a PE of 10x and CY18 EPS of 6.3sen. As most of its competitors are private, we were not able to find meaningful comparables. Although Metronic Global Berhad is listed, it is currently making losses. We like the group for its solid double digit growth prospects, driven by its collaboration with NetPosa and efforts to strengthen its presence within and outside Johor. At a dividend payout ratio of 30%, dividend yields are decent at 3.4%. Not Rated. Page 6 of 7 FY17F FY18F FY19F
25. TA Securities 5-May-17 A Member of the TA Group Table 9 : Earnings Summary (RMmn) FYE Dec 31 (RMmn) Revenue EBITDA EBITDA margin (%) Depreciation and amortisation EBIT Finance income Finance costs EI PBT Tax MI Net profit Core net profit EPS (sen) EPS growth (%) PER (x) DPS (sen) Div yield (%) FY15 39.6 6.8 17.1 (0.4) 6.4 0.0 (0.4) 0.0 6.1 (0.2) (0.1) 5.8 5.8 4.4 41.6 12.6 0.0 0.0 FY16 50.8 7.4 14.5 (0.4) 7.0 0.1 (0.3) 0.0 6.7 (0.3) 0.0 6.4 6.4 4.9 11.1 11.4 0.0 0.0 FY17F 54.1 9.6 17.7 (0.4) 9.2 0.4 (0.2) (3.0) 6.4 (0.6) 0.0 5.7 8.7 6.7 36.2 8.3 1.3 2.4 FY18F 57.6 10.5 18.2 (0.4) 10.0 0.7 (0.0) 0.0 10.7 (2.6) 0.0 8.1 8.1 6.3 (6.7) 8.9 1.9 3.4 FY19F 61.3 11.4 18.6 (0.4) 11.0 1.0 0.0 0.0 12.0 (2.9) 0.0 9.1 9.1 7.0 11.8 8.0 2.1 3.8 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. 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 7 of 7
26. RESULTS UPDATE TA Securities Friday , May 05, 2017 FBM KLCI: 1,758.67 Sector: Oil & Gas A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 MISC Berhad TP: RM7.65 (+3%) Last Traded: RM7.42 Chunky One-Off Offshore Bonanzas SELL THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Kylie Chan Sze Zan Tel: +603-2167 9601 kyliechan@ta.com.my Review MISC’s 1Q17 core net profit of RM904mn (-3% YoY) was above our estimates and consensus, accounting for 40% and 45% of full-year forecasts respectively. We expect a weaker core 9M17 performance as 1Q17 was skewed by chunky non-recurring income from the Offshore segment (i.e. FPSO Mampu VO claims, FPSO Cendor gain, and Malikai TLP change order), totaling more than USD75mn (RM332mn). Excluding this amount, the adjusted profit for 1Q17 merely amounted to RM573mn (-38% YoY), which accounted for 26% of our FY17 forecast. 1Q17 core profit excluded preemptive write-off of finance lease receivables (RM228mn) for MOPU Satu & Dua. This was related to MISC’s ongoing legal claims from client, PCPP Operating Co. Sdn Bhd. PCPP’s shareholders include Petronas Carigali (40%), PT Pertamina Hulu Eneri (30%), and Petrovietnam (30%). The claims are to recover the sums arising from early contract cancellation in Jun-16. This includes outstanding lease and service rates, completed variation works, early termination fees, and other costs. Recall that 1Q17 provisions are on top of earlier write-offs charged in FY16. YoY, profits were weaker due to:- 1) LNG: Chunky compensation fees (~USD100mn) received in 1Q16 due to early contract cancellation for Aman Hakata & Bintulu, 2) Petroleum:- i) More expensive bunker costs, which increased by USD100/tonne YoY, ii) Lower charter rates, iii) Leaner fleet following cancellation of in-charters for four Aframax vessels, conversion of Bunga Kelana 5 into FSO Benchamas 2, etc., and 3) Heavy Engineering: weakness at the Marine segment, coupled with lower Offshore order recognition. The above more than offset 1Q17 profit drivers that include:- 1) LNG: i) Maiden full-quarter contribution from Seri Cenderawasih newbuild (contract: 15+5 years with Petronas), ii) Contribution from Seri Camellia (delivery: Oct-16), iii) Retrospective income (~USD8mn) from Seri Balhaf & Balqis, 2) Offshore: i) Progress billings for FSO Benchamas EPCIC contract (Revenue: ~USD30mn, Pretax profit: less than USD10mn), ii) Successful adjudication claim of variation orders (VO) amounting to USD65mn for FPSO MAMPU in 4Q16, iii) full consolidation of Gumusut Kakap production system (start: May-16), iv) one-off gain for FPSO Cendor (estimate: USD10mn), and 3) Heavy Engineering: chunky recognition of change orders for Malikai TLP. A Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) Par Value 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) Page 1 of 3 MISC MK 3816 Main Market 4463.8 33121.3 1.00 8.38/6.88 2561.0 18.0 0.7 Petronas - 62.7 EPF - 6.4 Skim Amanah Saham Bumiputera - 5.6 Forecast Revision Forecast Revision (%) Net profit (RM'mn) Consensus (RM'mn) TA's / Consensus (%) Previous Rating FY17 FY18 12.2 (4.3) 2534.5 2439.5 2074.0 2190.0 122.2 111.4 Sell (Maintained) Financial Indicators Net Debt/equity (%) CFPS (RM) P/CFPS (x) ROE (%) ROA (%) NTA/Share (RM) Price/NTA (x) FY17 Net Cash 11.1 66.8 6.6 4.5 8.6 0.9 FY18 Net Cash 71.2 10.4 6.1 4.2 8.8 0.8 % of FY 40 45 Above Above MISC 1.4 0.8 3.1 (11.1) FBM KLCI 0.8 4.4 6.7 6.9 Scorecard vs TA vs Consensus Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth (12-Mth) Share Price relative to the FBM KLCI For Seri Balhaf & Balqis, recall that both vessels suspended operations due to civil unrest at Yemen. Therefore, in 2H16, both LNG carriers recognized revenue at a lower laid-up rate. As such, the difference between original and laid-up rates shall be recognized in FY17 at the rate of ~USD8mn per quarter. Whereas for FPSO Cendor, there was a revision in its contract, resulting in lower rates at initial years but an extension in its tenure. Therefore, according to management, on overall project basis, net returns are neutral post-revisions. www.taonline.com.my Source: Bloomberg
27. TA Securities 5-May-17 A Member of the TA Group Earnings for the remainder of FY17 will be partially boosted by :- 1) commencement of Seri Bakti’s short term contract with Koch Industries, 2) 1–year extension for Seri Anggun (exercised by International Gas Transportation Co. Ltd in end-1Q17), and 3) newly secured 5-year charter for both LR2 newbuilds (delivery: 2Q17-2H17). On the flipside, profits may be dragged by upcoming contract expiries for Puteri Intan and Puteri Intan Satu. We do not discount the possibility of the vessels being idled, delay in securing contracts, or renewal at lower charter rates. Recall that Aman Hakata has been idle since Mar-16. Impact Changes to our forecasts include:- 1) new audited 2016 earnings, 2) revised forecasts for MMHE, 3) removal of Aman Bintulu following its sale to Faranco Shipping (Feb-17), 4) FPSO Cendor’s revised terms, 5) 1Q17 one-off income as mentioned above, and 6) change in petroleum fleet DCRs to reflect:- i) MISC’s current portfolio mix of 53:47 term to spot contracts (4Q16: 43: 57), and ii) renewed focus on lightering activities that have premium rates. As a result, our FY17/18/19 estimates are revised by +12%/-4%/-4%. Valuation Our TP for MISC is revised to RM7.65 (previous: RM7.08) as we roll forward our valuation base year to CY18, and following the change in forecasts. Our TP is based on unchanged 14x forward P/E. Maintain Sell. We remain pessimistic on MISC due to earnings weakness underpinned by charter rates at multi-year lows across all fleet segments. We do not expect a turnaround in the near term, due to prolonged vessel oversupply, coupled with tepid demand. LNG newbuilds delivery are expected to peak at 44 vessels in 2017 (+10% YoY), before tapering off to 41 units in 2018 and 22 units in 2019. Furthermore, 2017 LNG demand growth is projected to be subdued at 11%, whilst the current orderbook-to-fleet ratio remains escalated at 24%. Whereas for crude tankers, according to Clarksons, 2014-17 average tanker fleet growth will reach its peak of 6.2% in 2017 versus 2017 tanker demand of 0.8%. Additionally, earnings will also be dragged by a depleted orderbook at the Heavy Engineering segment. Similarly, in the near term, we do not expect a V-shaped recovery of the capex downcycle for offshore floaters. A gradual reversal, on the back of subdued oil price, implies sustained margin pressure and losses. Earnings Summary (RM’mn) FYE Dec 31 Revenue EBITDA EBITDA Margin Pretax Profit Net Profit Net Profit - adj EPS EPS - adj EPS growth PER GDPS Div yield (%) (sen) (sen) (%) (x) (sen) (%) FY15 10,908.4 4,885.1 44.8 3,147.4 2,467.8 3,048.4 55.3 68.3 53.9 10.9 30.0 4.0 Page 2 of 3 FY16 9,597.2 4,250.4 44.3 2,537.2 2,581.6 2,304.8 57.8 51.6 (24.4) 14.4 30.0 4.0 FY17E 10,136.5 4,853.1 47.9 2,795.7 2,534.5 2,534.5 56.8 56.8 10.0 13.1 30.0 4.0 FY18F 10,200.6 4,844.0 47.5 2,721.0 2,439.5 2,439.5 54.7 54.7 (3.7) 13.6 30.0 4.0 FY19F 11,026.6 5,020.3 45.5 3,009.2 2,697.9 2,697.9 60.4 60.4 10.6 12.3 30.0 4.0
28. TA Securities 5-May-17 A Member of the TA Group 1Q17 Results Analysis (RM’mn) FYE Dec Turnover ---> LNG Shipping (USD'mn) ---> Petroluem Shipping (USD'mn) ---> Offshore (USD'mn) ---> Heavy Engineering (USD'mn) EBIT Finance cost Associates & JV EI Reported PBT Core PBT ---> LNG Shipping (USD'mn) ---> Petroluem Shipping (USD'mn) ---> Offshore (USD'mn) ---> Heavy Engineering (USD'mn) Taxation MI Reported Net Profit Adj net profit Core EPS (sen) DPS (sen) EBIT margin (%) Pretax margin (%) ---> LNG Shipping (%) ---> Petroluem Shipping (%) ---> Offshore (%) ---> Heavy Engineering (%) ---> Integrated logistics (%) Net margin - adj (%) Tax rate (%) 1Q17 2,984.9 167.9 289.0 165.2 53.0 681.3 (65.8) 50.3 (227.3) 696.8 924.1 70.5 12.6 73.2 (4.0) (2.7) (17.7) 676.4 903.7 20.2 7.0 4Q16 2,517.5 127.9 294.3 88.0 70.1 666.6 (68.3) 6.7 20.4 504.5 484.1 54.4 7.0 25.4 3.4 (4.7) 30.1 529.8 509.5 11.4 20.0 1Q16 2,394.5 162.9 300.7 41.2 34.0 774.8 (47.7) 127.1 (356.5) 780.7 1,137.2 149.3 41.2 (20.9) (1.5) 14.7 (224.4) 571.0 927.5 20.8 0.0 QOQ (%) 18.6 31.3 (1.8) 87.7 (24.4) 2.2 (3.7) >100 >-100 38.1 90.9 29.6 80.0 >100 >-100 (43.1) >-100 27.7 77.4 76.3 (65.0) YOY (%) 24.7 3.1 (3.9) >100 55.9 (12.1) 38.0 (60.4) (36.2) (10.7) (18.7) (52.8) (69.4) >-100 >100 >-100 (92.1) 18.5 (2.6) (3.0) nm 22.8 31.0 42.0 4.4 44.3 (7.5) 0.0 30.3 0.3 26.5 19.2 42.5 2.4 28.9 4.9 0.0 20.2 1.0 32.4 47.5 91.7 13.7 (50.7) (4.4) 0.0 38.7 (1.3) ppt (3.7) 11.7 (0.5) 2.0 15.4 (12.4) 0.0 10.0 (0.7) ppt (9.5) (16.5) (49.7) (9.3) 95.0 (3.1) 0.0 (8.5) 1.6 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. 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
29. COMPANY UPDATE TA Securities Friday , May 05, 2017 FBMKLCI: 1,758.67 Sector: Oil & Gas A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 UMW Oil & Gas Corporation Bhd TP: RM0.81 (ex-rights: RM0.43) Expensive Acquisition Aborted Last Traded: RM0.69 (ex-rights: RM0.40 Hold THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Abel Goon abelgoon@ta.com.my Tel: +603 2072 1277 ext. 1641 The News UMW Oil and Gas Corporation Bhd (UMWOG) has terminated the deal to acquire Icon Offshore and Orkim. Subsequently, it announced a 14-for-5 rights issue with 1-for-4 free warrants. Issue price for the rights has been set at RM0.30/share which implies a 25.0% discount to the current theoretical exrights price. The rights issue will be fully underwritten by PNB up to its 65% stake. Meanwhile, for the remainder, if necessary, it will be taken up via redeemable convertible preference shares (RCPS) with subscription price of RM0.30/share. The proposal is expected to be completed in 3QFY17 and is conditional on PNB obtaining exemption to undertake a mandatory general offer. Our View The news is a positive surprise as we had previously expected the Icon-Orkim acquisition to succeed given PNB’s large shareholding. Furthermore, we believe the new proposals are significantly better for reasons as stated below: Old Proposal New Proposal Acquisitions are expensive and lack synergistic benefits Aborted acquisitions allow UMWOG to focus on its core business, i.e. jackup rigs. Highly dilutive as new shares shall be issued to Icon shareholders No dilution if shareholders choose to subscribe to rights issue RM850mn to pare down borrowings RM1.5bn to pare down borrowings RM1.8bn rights issue is partially underwritten (only RM1.3bn) RM1.8bn rights underwritten May erode UMWOG’s cashpile if Icon shareholders choose cash over shares UMWOG’s cashpile remains intact, and lower debt allows for refinancing flexibility Net gearing reduction to 0.9x Net gearing reduction to 0.56x Minimal increase in working capital of RM50mn Sizable increase in working capital of RM310mn issue is fully www.taonline.com.my 1 Share Information 4 Bloomberg Code UMWOG MK Stock Code 5243 Listing Main Market Share Cap (mn) 2,162 Market Cap (RMmn) 1,492 Par Value (RM) 0.50 52-wk Hi/Lo (RM) 1.04/0.61 12-mth Avg Daily Vol ('000 shrs) 2,663 Estimated Free Float (%) 19.8 Beta 2.5 Major Shareholders (%) UMW Holdings - 55.7 Skim Amanah Saham - 8.4 EPF - 5.0 Forecast Revision (%) FY17 FY18 Forecast Revision (%) 0.0 0.0 Core Net Profit (RM mn) (318.0) (267.7) Consensus (272.9) (181.7) TA/Consensus (%) 116.5 147.4 Previous Rating Sell (Upgrade) Financial Indicators Net (Debt)/Equity (x) ROA (%) ROE (%) NTA/Share (RM) P/NTA (x) Share Performance Price Change (%) 1 mth 3 mth 6 mth 12 mth FY17 1.8 (5.0) (16.5) 0.9 0.8 FY18 2.1 (4.4) (16.1) 0.8 0.9 UMWOG 11.3 (1.4) (18.8) (24.6) FBMKLCI 0.7 4.4 6.7 6.1 (12-Mth) Share Price relative to the FBM KLCI Utilisation of Proceeds UMWOG intends to utilise the lion’s share of the proceeds (RM1.5bn) to pare down its debt as it aims to reduce finance costs. The group estimates finance costs savings of circa RM60mn per annum. Furthermore, as debt is reduced, the Group will have more flexibility in refinancing. Thus, this will release the RM308mn cash set aside to repay UMW Holdings Bhd. The remaining RM316.1mn will be utilised as working capital and to defray expenses related to this proposal. The boost in working capital will allow UMWOG to sustain a healthy cashflow, thus allowing it to survive the downturn in the oil and gas sector. Page 1 of 5 Source: Bloomberg
30. TA Securities 5-May-17 A Member of the TA Group Other Key Takeaways Acquisition was aborted by management after considering amount of capital required . Furthermore, it is highly likely that PNB will secure the exemption needed to prevent the triggering of a mandatory general offer. UMWOG will be able to breakeven with 6 out of 7 rigs working. Tender activities have increased and UMWOG expects a much better utilisation rate as compared to last year. Firm orderbook stands at RM478mn whereas optional orderbook stands at RM418mn. Impact Maintain our earnings forecast pending approvals for the rights issue. Valuation We expect UMWOG’s FY17 to be back-loaded as many of its rigs remain idle in 1HFY17. Going forward, we believe demand for jack-up rigs will pick up and cost cutting measures will improve cashflow. Given the more favourable outlook after the termination of the Icon-Orkim we upgrade UMWOG to HOLD with higher TP of RM0.81 based on higher 0.9x FY17 P/B (previous: 0.54 based on 0.6x FY17/P/B). The higher multiple is in-line with our oil and gas bellwether Sapura Energy. Risks to our call include 1) failure to secure contracts, and 2) increased demand for jack-up rigs. Figure 1: Jackup Fleet Status Rig Built/ Delivery Contract Period NAGA 1 1974 NAGA 2* 2009 NAGA 3 2010 Awaiting Contract Kemaman NAGA 4 2013 Awaiting Contract Kemaman NAGA 5 May 2014 NAGA 6 Sep 2014 NAGA 7 Dec 2014 NAGA 8 Sep 2015 Client Contract Tenure Sold Ophir/ Vestigo 4-5 months Current Location Labuan Starting 2Q17 Terengganu Petrofac 3-4 months Starting 2Q17 Kemaman Petronas Carigali Petronas Carigali May 2016May 2018 2+1 yrs Sarawak Until 2Q18 1.5 yrs Sabah Until 1Q18 1.5+1 yrs NMB Hess *Two different contracts to Ophir and Vestigo Figure 2. Utilisation of Proceeds Utilisation of Proceeds Part repayment of borrowings Working Cap Defray estimated expenses relating to proposals TOTAL Source: Company, TA Research Page 2 of 5 % RM mn Timeframe 82.6 17.1 0.3 100.0 1,500.0 310.0 6.1 1,816.1 4 months 24 months 2 months
31. TA Securities 5-May-17 A Member of the TA Group Figure 3 . Share cap movement UMWOG Full right subscription No rights subscription except PNB Current Right issue @ RM0.30 RCPS issue @ RM0.30 Total shares 2,162.0 6,053.6 0.0 8,215.6 2,162.0 1,206.1 4,847.5 3,368.1 Source: Company, TA Research Figure 4. Salient terms of RCPS Figure 5. Salient terms of Warrants Source: Company, TA Research Source: Company, TA Research Figure 6. Dilution given 100% subscription Figure 7. Dilution given 0% subscription Issued and paid up share capital Right issue @ RM0.30 Free warrants @ RM0.395 Fully-diluted share cap 2,162.0 6,053.6 1,513.4 9,729.0 Projected net loss (RM mn) Add: After-tax income from rights Add: After-tax income from warrants Revised net loss Current Loss per share (sen) FD Loss per share (sen) Dilution (%) FY17E (318.0) 73.0 24.0 (221.0) (14.7) (2.3) -84.6 FY18F (267.7) 73.0 24.0 (170.7) (12.4) (1.8) -85.8 FY19F (176.9) 73.0 24.0 (79.9) (8.2) (0.8) -90.0 *assuming interest rate of 4% and equal to borrowing rate Issued and paid up share capital Right issue @ RM0.30 Free warrants @ RM0.395 RCPS @ RM0.30 Fully-diluted share cap 2,162.0 1,206.1 301.5 4,847.5 8,517.1 Projected net loss (RM mn) Add: After-tax income from rights Add: After-tax income from warrants Revised net loss Current Loss per share (sen) FD Loss per share (sen) Dilution (%) FY17E (318.0) 73.0 24.0 (221.0) (14.7) (2.6) -82.4 *assuming interest rate of 4% and equal to borrowing rate Source: Company, TA Research Source: Company, TA Research Page 3 of 5 FY18F (267.7) 73.0 24.0 (170.7) (12.4) (2.0) -83.8 FY19F (176.9) 73.0 24.0 (79.9) (8.2) (0.9) -88.5
32. TA Securities 5-May-17 A Member of the TA Group Earnings Summary Income Statememt FYE 31 Dec (RMmn) Revenue EBITDA Depreciation Net finance cost Share of Associates Exceptionals Pretax Profit Taxation MI Net Profit Core Net Profit Per Share Data Core EPS DPS Book Value NTA 2015 2016 839.9 320.8 260.7 (32.8) (242.1) (285.4) (38.6) (100.4) 0.5 0.5 (328.9) (765.5) (348.4) (1,183.5) (20.0) (5.5) (0.8) 2.8 (369.3) (1,186.2) (40.4) (420.7) (sen) (sen) (RM) (RM) 2017E 432.8 28.9 (249.5) (97.2) 0.5 0.0 (317.3) (1.5) 0.8 (318.0) (318.0) 2018F 488.9 72.8 (240.1) (100.4) 0.6 0.0 (267.1) (1.2) 0.6 (267.7) (267.7) 2019F 563.9 154.9 (231.5) (100.5) 0.6 0.0 (176.5) (0.8) 0.4 (176.9) (176.9) (1.9) 0.0 1.5 1.5 (19.5) 0.0 1.0 1.0 (14.7) 0.0 0.9 0.9 (12.4) 0.0 0.8 0.8 (8.2) 0.0 0.7 0.7 2015 2016 2017E 2018F 2019F Ratios FYE 31 Dec (RMmn) Valuations Core PER Dividend yield EV/EBITDA P/BV P/NTA FCF Yield (x) (%) (x) (x) (x) (%) (36.9) 0.0 17.3 0.4 0.4 (101.4) (3.5) 0.0 (144.2) 0.7 0.7 (14.9) (4.7) 0.0 171.0 0.8 0.8 5.2 (5.6) 0.0 68.4 0.9 0.9 (0.9) (8.4) 0.0 32.1 1.0 1.0 6.6 Profitability ratios EBITDA margin EBIT margin PBT margin Core Net margin Core ROE Core ROA (%) (%) (%) (%) (%) (%) 31.0 2.2 (41.5) (4.8) (1.2) (0.5) (10.2) (99.2) (368.9) (131.1) (18.7) (6.4) 6.7 (51.0) (73.3) (73.5) (16.5) (5.0) 14.9 (34.2) (54.6) (54.7) (16.1) (4.4) 27.5 (13.6) (31.3) (31.4) (11.9) (3.0) Liquidity ratios Current ratio Quick ratio (x) (x) 1.6 0.5 1.8 0.4 2.0 0.4 2.2 0.3 2.3 0.3 Leverage ratios Total Debt/ Assets Total Debt/Equity Net Debt(Cash)/ Equity Interest Coverage (x) (x) (x) (x) 0.5 1.2 0.9 0.3 0.6 1.7 1.4 (2.7) 0.6 1.9 1.8 (1.9) 0.6 2.2 2.1 (1.5) 0.6 2.4 2.3 (0.7) Growth ratios Revenue EBITDA PBT Core Net Profit Core EPS (%) (%) (%) (%) (%) (17.4) (36.9) >-100 >-100 >-100 (61.8) >-100 239.7 >-100 >-100 34.9 >-100 (73.2) (24.4) (24.4) 13.0 152.1 (15.8) (15.8) (15.8) 15.3 112.9 (33.9) (33.9) (33.9) 82.9 35.4 40.0 40.0 88.6 37.5 50.0 40.0 95.7 41.7 50.0 40.0 Key Assumptions Average Rig Fleet DCR (USD 'k) Average Rig Fleet Utilisation (%) HWU Average Utilisation (%) HWU Revenue per Day (RM 'K/day) Page 4 of 5 Balance Sheet FYE 31 Dec (RMmn) Property, Plant & Equip Associates Others Non-Current Assets 2015 6,081.6 2.1 5.5 6,089.2 2016 5,292.6 2.2 339.2 5,634.0 2017E 5,086.4 2.7 339.2 5,428.3 2018F 4,895.2 3.3 339.2 5,237.7 2019F 4,720.1 3.9 339.2 5,063.2 Inventories Trade and other rcvb Cash and Deposits Others Current Assets 204.5 283.3 973.8 96.2 1,557.8 211.0 107.1 553.5 50.8 922.3 250.6 362.0 297.6 50.8 961.0 222.8 362.0 206.1 50.8 841.6 222.8 362.0 153.3 50.8 788.8 Total Assets 7,647.0 6,556.3 6,389.3 6,079.3 5,852.0 LT Borrowings Due to Holding Co. Others Non-Current Liabilities 1,747.0 0.0 1.1 1,748.1 2,291.6 308.0 1.2 2,600.8 2,261.4 308.0 1.2 2,570.6 2,231.2 308.0 1.2 2,540.4 2,200.9 308.0 1.2 2,510.2 ST Borrowings Trade & other Payables Due to Holding Co. Others Current Liabilities 2,257.3 294.2 2.8 1.1 2,555.5 1,499.7 146.3 2.3 54.4 1,702.7 1,480.0 348.1 2.3 54.4 1,884.7 1,460.2 356.4 2.3 54.4 1,873.2 1,440.4 356.4 2.3 54.4 1,853.5 Total Liabilities 4,303.5 4,303.5 4,455.3 4,413.6 4,363.6 Share capital Reserves Minority Interests Equity 1,081.0 2,252.0 10.4 3,343.4 1,081.0 1,165.6 6.1 2,252.7 1,081.0 847.6 5.4 1,934.0 1,081.0 579.9 4.7 1,665.7 1,081.0 403.0 4.3 1,488.4 Total Equity + Liabilities 7,647.0 6,556.3 6,389.3 6,079.3 5,852.0 FYE 31 Dec (RMmn) Cash Flow Statement Pretax Profit Depreciation Net Interest Associates & JCEs Working Cap Changes Income Tax Paid Others CF from Operations 2015 2016 2017E 2018F 2019F (348.4) 242.1 38.6 (0.5) 106.7 (20.0) 356.8 375.3 (1,183.5) 285.4 100.4 (0.5) 21.9 (4.1) 661.3 (119.2) (317.3) 249.5 97.2 (0.5) (92.8) (1.5) 0.0 (65.4) (267.1) 240.1 100.4 (0.6) 36.2 (1.2) 0.0 107.8 (176.5) 231.5 100.5 (0.6) 0.0 (0.8) 0.0 154.1 (1,773.1) 0.0 24.4 (88.2) (1,837.0) (21.7) 0.0 16.3 89.8 84.4 (43.3) 0.0 16.1 0.0 (27.1) (48.9) 0.0 11.5 0.0 (37.4) (56.4) 0.0 9.8 0.0 (46.6) Share Issuance Net Change in Debt Interest Expense Others CF from Financing 0.0 1,232.7 (64.1) 42.4 1,211.1 0.0 (70.5) (117.3) 117.3 (70.5) 0.0 (50.0) (113.4) 0.0 (163.4) 0.0 (50.0) (111.9) 0.0 (161.9) 0.0 (50.0) (110.3) 0.0 (160.3) Net Cash Flow Beginning Cash Exchange Rates Ending Cash Deposits Held in Bank (250.6) 1,178.0 46.4 973.8 0.0 (105.3) 973.8 21.5 890.0 (336.5) (255.9) 890.0 0.0 634.1 (336.5) (91.5) 634.1 0.0 542.6 (336.5) (52.8) 542.6 0.0 489.8 (336.5) Capex Acquisitions/Disposal Interest Received Others CF from Investing
33. TA Securities 5-May-17 A Member of the TA Group ( T HI S P AGE I S I NT E N T I ON AL L Y L E FT B L ANK) Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. 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 5 of 5
34. Friday , 05 May, 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
35. T e c h n i c a l TA Securities V i e w Friday , May 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: 1,758.67 (-13.84, -0.78%) 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 GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 4-May 1758.67 2.96 4.22 5.40 5.13 5.79 5.01 5.28 9.82 5.76 6.19 4.55 1.24 6.48 9.20 1.29 5.43 9.30 13.90 6.46 3.88 3.36 0.46 0.77 0.44 4.62 1.88 1.50 1.26 1.70 3.08 2.32 1.37 1.14 1.53 1.56 1.97 2.00 1.25 0.90 2.19 Change (13.84) -0.01 -0.04 -0.20 -0.08 -0.02 0.00 -0.06 -0.13 -0.10 -0.01 0.04 0.00 0.02 -0.39 -0.03 -0.09 0.00 -0.04 -0.01 0.04 -0.02 -0.01 -0.01 -0.01 -0.03 -0.04 -0.02 0.00 -0.01 -0.14 0.00 -0.05 -0.02 -0.03 -0.02 0.01 -0.06 -0.03 0.00 0.01 Tel: +603-2167-9607 High Low 1,768.71 1,754.23 2.97 4.26 5.60 5.21 5.84 5.01 5.33 9.94 5.88 6.25 4.57 1.24 6.48 9.28 1.32 5.54 9.32 13.94 6.47 3.89 3.41 0.47 0.78 0.45 4.63 1.92 1.52 1.28 1.70 3.24 2.32 1.42 1.16 1.56 1.58 1.99 2.07 1.28 0.90 2.20 2.93 4.17 5.31 5.11 5.71 4.99 5.24 9.75 5.74 6.14 4.51 1.21 6.45 9.11 1.28 5.38 9.29 13.86 6.45 3.80 3.23 0.46 0.77 0.44 4.55 1.85 1.49 1.25 1.69 3.07 2.31 1.37 1.13 1.51 1.55 1.94 1.98 1.24 0.90 2.12 Bollinger Bands Lower Mid Upper 1,721.65 1,750.87 1,780.09 2.76 3.90 4.54 4.99 5.27 5.01 5.04 9.09 5.31 5.93 4.39 1.20 6.35 8.69 1.15 4.98 9.25 13.61 6.34 3.89 2.92 0.36 0.75 0.43 4.19 1.73 1.47 1.24 1.65 2.87 2.16 1.28 1.01 1.48 1.50 1.92 1.74 1.19 0.88 1.92 2.88 4.07 5.12 5.10 5.58 5.11 5.19 9.60 5.70 6.08 4.54 1.24 6.42 9.18 1.25 5.27 9.30 13.78 6.43 4.02 3.18 0.42 0.78 0.45 4.43 1.84 1.51 1.28 1.68 3.03 2.27 1.34 1.13 1.63 1.57 2.00 1.90 1.25 0.89 2.08 3.00 4.25 5.69 5.22 5.89 5.20 5.33 10.12 6.08 6.23 4.68 1.28 6.49 9.68 1.35 5.55 9.36 13.95 6.52 4.16 3.45 0.48 0.81 0.46 4.67 1.95 1.54 1.33 1.71 3.20 2.38 1.41 1.24 1.79 1.64 2.08 2.07 1.31 0.91 2.24 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 55.24 1,763.41 1,749.56 1,738.24 DMI DI + DI - ADX 33.72 20.57 34.24 Diff 13.16 68.18 64.81 64.73 54.98 66.68 30.36 58.73 56.98 53.13 66.43 47.92 53.88 58.43 51.46 57.65 61.03 52.06 62.81 59.24 38.52 71.80 66.37 49.69 46.62 73.41 59.46 47.04 48.33 56.78 61.84 59.09 58.16 57.05 38.95 50.58 50.44 64.46 50.51 53.14 64.55 34.83 32.12 39.64 27.33 33.45 13.84 28.39 28.30 25.55 29.87 14.51 17.56 12.65 31.45 34.87 28.53 15.08 26.04 24.35 12.06 28.41 34.12 25.38 23.98 31.31 29.83 17.13 24.02 36.06 32.14 37.67 45.91 33.63 16.70 27.14 20.79 33.19 21.54 33.68 32.73 15.59 14.02 18.61 8.67 18.85 (9.40) 12.12 14.01 10.30 21.43 (8.50) (1.61) 2.60 1.55 16.62 9.51 (6.88) 15.34 10.56 (14.90) 9.52 23.48 7.37 22.62 10.72 10.72 (0.69) 6.16 22.01 16.14 19.37 25.61 13.73 (8.14) 7.68 0.10 12.53 1.92 20.36 14.64 2.92 4.13 5.36 5.13 5.71 5.11 5.22 9.84 5.85 6.13 4.56 1.23 6.44 9.39 1.29 5.37 9.30 13.85 6.47 3.98 3.31 0.44 0.78 0.44 4.53 1.87 1.52 1.27 1.68 3.09 2.30 1.35 1.14 1.56 1.55 1.98 1.96 1.25 0.89 2.13 2.88 4.08 5.02 5.08 5.59 5.12 5.20 9.62 5.65 6.05 4.58 1.22 6.42 9.11 1.25 5.26 9.32 13.77 6.42 4.03 3.13 0.41 0.77 0.44 4.38 1.81 1.52 1.28 1.68 2.91 2.25 1.31 1.09 1.65 1.55 1.96 1.86 1.26 0.89 2.03 2.82 4.05 4.94 4.92 5.48 5.10 5.12 9.52 5.53 6.02 4.63 1.21 6.40 8.96 1.22 5.20 9.25 13.72 6.35 4.00 2.99 0.41 0.76 0.45 4.30 1.75 1.51 1.25 1.69 2.46 2.23 1.29 1.01 1.58 1.55 1.94 1.81 1.23 0.88 1.96 19.24 18.09 21.03 18.66 14.60 23.24 16.27 14.29 15.25 8.45 23.01 19.17 10.05 29.90 18.25 19.02 21.96 10.70 13.78 26.97 18.90 10.64 21.93 16.62 8.69 19.12 17.81 17.85 14.06 16.00 18.30 20.31 19.90 24.84 19.46 20.69 20.66 19.62 13.31 18.09 32.18 22.59 37.12 23.28 31.67 17.69 22.43 36.54 33.68 30.11 17.13 19.60 7.37 37.45 31.53 23.26 12.41 21.99 27.87 16.13 41.68 36.02 24.80 21.38 27.28 40.93 21.45 24.48 21.40 42.58 31.24 26.29 39.26 27.77 21.39 13.95 38.58 19.70 29.09 24.23 www.taonline.com.my Line 9.24 0.04 0.05 0.19 0.05 0.10 -0.01 0.04 0.13 0.11 0.05 -0.02 0.00 0.02 0.16 0.03 0.08 0.02 0.05 0.03 -0.03 0.11 0.02 0.01 0.00 0.09 0.05 0.00 0.00 0.00 0.18 0.03 0.02 0.04 -0.02 0.00 0.02 0.06 0.01 0.00 0.07 MACD Signal Diff 8.02 1.217 0.03 0.02 0.14 0.06 0.07 0.00 0.03 0.11 0.11 0.03 -0.02 0.00 0.01 0.15 0.02 0.05 0.02 0.04 0.04 -0.01 0.10 0.01 0.01 0.00 0.07 0.04 0.00 0.01 0.00 0.21 0.02 0.02 0.04 -0.01 0.00 0.02 0.05 0.01 0.00 0.05 0.008 0.022 0.047 (0.002) 0.025 (0.016) 0.013 0.026 0.003 0.017 0.009 (0.000) 0.002 0.015 0.006 0.030 (0.005) 0.018 (0.003) (0.021) 0.011 0.007 (0.003) 0.000 0.021 0.004 (0.000) (0.005) 0.005 (0.032) 0.009 0.004 0.000 (0.016) 0.002 (0.006) 0.015 0.001 (0.000) 0.013 DMI MACD Recent Signal BUY BUY DMI MACD Signal Change - BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY SELL SELL BUY BUY BUY BUY SELL BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY BUY BUY SELL SELL - BUY BUY BUY SELL BUY SELL BUY BUY BUY BUY BUY SELL BUY BUY BUY BUY SELL BUY SELL SELL BUY BUY SELL BUY BUY BUY SELL SELL BUY SELL BUY BUY BUY SELL BUY SELL BUY BUY SELL BUY SELL SELL BUY SELL - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
36. Technical Comments : Sell Ekovest & IWCB Hook-down momentum indicators on Ekovest implies near-term downside risk, with key chart supports from 95sen and 200-day ma (92sen) and 76.4%FR (82sen) cushioning downside risk, while rebounds should be capped by the 150%FP (RM1.24), 161.8%FP (RM1.31) and 176.4%FP (RM1.40). Likewise, IWCB shares should correct to the 23.6%FR (RM2.70), 38.2%FR (RM2.34) and 50%FR (RM2.05) upon trade resumption, with key supports from the 61.8%FR (RM1.75) and 76.4%FR (RM1.39) padded by the 200-day ma (RM1.29). EKOVEST Upper Middle RM1.17 (-0.26) BOLLINGER BANDS RM RM 1.49 1.37 10-day 30-day RM 1.25 50-day Lower DMI SIMPLE MOVING AVERAGES RM 1.37 RM 1.38 RM 1.34 DAILY MACD Recent Signal SELL Recent Signal SELL Signal Change SELL Signal Change SELL IWCB Upper Middle Lower Recent Signal Signal Change BOLLINGER BANDS RM RM RM DMI RM3.08 (UNCH) 3.20 3.03 2.87 BUY SIMPLE MOVING AVERAGES RM 3.09 RM 2.91 RM 2.46 DAILY MACD Recent Signal SELL Signal Change 10-day 30-day 50-day Page 2 of 4
37. T e c h n i c a l TA Securities V i e w Friday , May 05, 2017 FBMKLCI: 1,758.67 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 04.05.2017 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 NETX HOLDINGS BH GLOBALTEC FORMAT LUSTER INDUSTRIE IRIS CORP BHD TIGER SYNERGY BH NEXGRAM HOLDINGS MALAYAN BANKING PWORTH FRONTKEN CORP MPAY RGB INTERNATIONA BIOALPHA HOLDING JAG BHD JCY INTERNATIONA DRB-HICOM BHD MNC WIRELESS BHD LAND & GENERAL PERAK TRANSIT BH ADV SYNERGY BHD PUBLIC BANK BHD HOVID BHD BCM ALLIANCE B SUNWAY REAL ESTA ANCOM LOGISTICS MALAKOFF CORP BH DIGISTAR CORP IOI CORP BHD M3 TECHNOLOGIES PRINSIPTEK CORPO D&O GREEN TECH Price 0.05 0.06 0.13 0.19 0.08 0.05 9.20 0.25 0.25 0.24 0.32 0.27 0.13 0.63 1.39 0.09 0.27 0.26 0.20 19.98 0.36 0.24 1.71 0.13 1.24 0.21 4.55 0.09 0.20 0.65 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.03 0.04 0.11 0.15 0.04 0.04 8.69 0.20 0.22 0.22 0.27 0.25 0.11 0.59 1.30 0.07 0.23 0.23 0.16 19.82 0.33 0.21 1.69 0.10 1.20 0.20 4.39 0.08 0.18 0.61 0.04 0.05 0.13 0.18 0.07 0.05 9.19 0.23 0.24 0.24 0.30 0.26 0.12 0.62 1.38 0.08 0.25 0.25 0.19 19.97 0.34 0.22 1.71 0.13 1.24 0.21 4.54 0.08 0.19 0.64 0.05 0.06 0.14 0.21 0.09 0.05 9.68 0.27 0.26 0.25 0.33 0.28 0.14 0.64 1.45 0.09 0.27 0.27 0.21 20.13 0.35 0.24 1.72 0.15 1.28 0.22 4.68 0.09 0.20 0.67 64.99 61.81 55.83 58.67 60.48 56.37 51.46 62.75 55.72 52.78 56.85 55.82 56.27 57.79 51.33 58.05 59.96 59.11 61.22 49.73 65.86 64.09 50.70 53.72 53.88 53.90 47.92 56.41 56.71 56.24 0.04 0.05 0.13 0.19 0.07 0.05 9.39 0.24 0.24 0.23 0.31 0.26 0.13 0.62 1.39 0.08 0.26 0.26 0.19 20.00 0.34 0.23 1.70 0.14 1.23 0.21 4.56 0.08 0.19 0.65 0.04 0.05 0.12 0.17 0.06 0.05 9.11 0.22 0.24 0.24 0.30 0.26 0.12 0.61 1.38 0.08 0.25 0.25 0.18 19.96 0.34 0.21 1.71 0.12 1.22 0.21 4.58 0.08 0.19 0.64 0.03 0.05 0.11 0.15 0.05 0.05 8.96 0.19 0.24 0.24 0.29 0.25 0.12 0.62 1.39 0.07 0.26 0.23 0.16 19.96 0.33 0.19 1.71 0.11 1.21 0.20 4.63 0.07 0.17 0.59 Vol 91,749,100 90,504,300 37,706,500 26,725,100 24,139,300 20,418,200 19,415,000 17,721,200 16,628,400 12,443,000 11,388,500 10,681,800 9,694,400 8,831,100 8,609,800 8,295,800 7,924,700 7,117,100 6,817,400 5,384,200 5,374,700 5,349,300 4,970,300 4,914,500 4,890,100 3,931,100 3,797,300 3,748,200 3,664,800 3,645,600 20-day avg vol 25,448,160 17,420,630 29,404,370 57,653,690 41,953,680 6,025,320 20,908,520 60,088,740 15,253,430 7,492,225 14,469,080 13,140,290 14,728,810 2,487,405 7,578,535 14,458,490 15,127,900 8,420,115 14,958,620 3,781,350 3,268,670 10,586,080 827,280 3,106,020 8,262,055 11,804,750 4,930,915 9,708,825 4,038,905 6,572,720 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
38. 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 THETA EDGE BHD BIG INDUS BHD TAS OFFSHORE BHD PARAGON UNION K SENG SENG CORP TEO GUAN LEE COR I-BHD GLOBALTEC FORMAT MRCB-QUILL REIT EONMETALL GROUP PELIKAN INTERNAT AXIS REAL ESTATE FAVELLE FAVCO BH NETX HOLDINGS BH CYPARK RESOURCES PARKSON HOLDINGS KUMP POWERNET EVERSENDAI CORP UNIMECH GRP BHD 0.53 0.55 0.39 0.56 0.53 1.51 0.66 0.06 1.32 0.65 0.91 1.70 2.82 0.05 2.55 0.67 0.72 1.02 1.17 2.89 CAB CAKARAN CORP Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.36 0.46 0.32 0.42 0.43 1.31 0.59 0.04 1.26 0.60 0.78 1.62 2.65 0.03 2.31 0.61 0.27 0.59 1.04 2.18 0.42 0.50 0.35 0.48 0.47 1.41 0.62 0.05 1.28 0.62 0.84 1.66 2.72 0.04 2.40 0.63 0.47 0.80 1.10 2.47 0.47 0.54 0.37 0.53 0.51 1.50 0.64 0.06 1.31 0.64 0.90 1.69 2.79 0.05 2.50 0.65 0.68 1.01 1.15 2.77 77.25 60.42 69.80 70.50 70.74 57.92 68.48 61.81 66.37 68.71 66.32 64.97 70.04 64.99 76.10 65.34 86.81 82.57 75.32 77.19 0.42 0.50 0.35 0.48 0.47 1.43 0.63 0.05 1.29 0.62 0.84 1.66 2.73 0.04 2.41 0.64 0.53 0.88 1.11 2.58 0.41 0.49 0.34 0.47 0.46 1.40 0.61 0.05 1.28 0.61 0.86 1.66 2.72 0.04 2.35 0.64 0.44 0.76 1.09 2.36 0.39 0.49 0.34 0.48 0.45 1.42 0.61 0.05 1.28 0.60 0.88 1.65 2.72 0.03 2.30 0.64 0.43 0.70 1.09 2.09 Vol 4,716,000 2,125,100 2,724,000 902,600 1,971,600 6,000 7,512,100 90,504,300 2,232,900 3,266,400 886,600 1,504,600 768,700 91,749,100 3,936,000 3,366,000 462,900 15,677,500 114,000 3,651,500 20-day avg vol 441,815 204,755 325,725 123,460 275,440 1,030 1,390,145 17,420,630 430,005 640,905 214,235 366,000 196,720 25,448,160 1,109,680 967,170 133,065 4,725,640 39,815 1,291,020 *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. p [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 CARLSBERG BREWER CYCLE & CARR BIN EKOVEST BHD FELDA GLOBAL VEN 7-ELEVEN MALAYSI MKH BHD BLD PLANTATION TITIJAYA LAND BH ICON OFFSHORE DAMANSARA REALTY MNRB HOLDINGS CHIN WELL HOLDIN PERAK CORP BHD FORMOSA PROSONIC WESTPORTS HOLDIN PCHEM ES CERAMICS TECH SIN HENG CHAN WINTONI GROUP BH FIBON BHD 14.44 2.48 1.17 1.84 1.48 2.35 8.40 1.68 0.39 0.68 2.54 1.63 1.89 0.84 3.88 7.13 0.40 0.58 0.03 0.66 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 14.57 2.58 1.25 1.90 1.53 2.39 8.42 1.70 0.40 0.69 2.55 1.64 1.90 0.84 3.89 7.14 0.41 0.58 0.03 0.66 14.97 2.78 1.37 2.03 1.65 2.77 8.53 1.74 0.46 0.77 2.67 1.72 2.01 0.86 4.02 7.54 0.46 0.65 0.05 0.73 15.37 2.97 1.49 2.16 1.77 3.15 8.64 1.78 0.52 0.84 2.79 1.81 2.11 0.88 4.16 7.95 0.52 0.73 0.06 0.79 35.86 16.77 33.08 34.70 30.88 13.70 32.09 36.33 20.98 30.32 44.16 25.00 38.07 30.10 38.52 26.71 21.64 36.92 36.77 32.50 14.92 2.71 1.37 2.01 1.63 2.68 8.50 1.73 0.44 0.73 2.64 1.70 2.00 0.86 3.98 7.38 0.44 0.63 0.05 0.70 14.95 2.80 1.38 2.04 1.61 2.84 8.53 1.75 0.46 0.78 2.59 1.74 2.03 0.88 4.03 7.56 0.46 0.65 0.04 0.73 14.74 2.84 1.34 1.97 1.56 2.88 8.50 1.74 0.46 0.78 2.48 1.73 2.00 0.91 4.00 7.49 0.47 0.62 0.05 0.72 Vol 135,800 619,500 230,129,900 40,931,800 902,900 808,500 10,100 275,700 2,596,900 1,111,800 242,900 455,100 197,200 85,100 3,533,700 6,955,900 664,500 1,000 10,733,000 321,200 20-day avg vol 158,315 116,905 18,387,870 12,442,960 1,432,920 474,943 3,205 1,383,460 5,351,540 521,085 181,045 342,380 67,495 156,000 2,475,480 7,879,875 732,965 7,250 8,299,865 702,305 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
39. Friday , 05 May, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED FOREIGN TECHNICAL REPORTS’ Asian Technical Reports 1. Foreign Technical Stock Watch (AUS) 2. Foreign Technical Stock Watch (HK) 3. Foreign Technical Stock Watch (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
40. T e c h n i c a l TA Securities V i e w Friday , May 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 Foreign Technical Stock Watch Australia ASX: 5,876.37 (-15.97, -0.27%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name ASX 200 BHP BILLITON RIO TINTO COMMONW BK AUSTR WESTPAC BANKING AUST AND NZ BANK NATL AUST BANK WESFARMERS WOODSIDE PETRO NEWCREST MINING WESTFIELD GROUP FORTESCUE METALS QBE INSURANCE ORIGIN ENERGY AMP SANTOS MACQUARIE GROUP SUNCORP GROUP ORICA OIL SEARCH COCA-COLA AMATIL AMCOR STOCKLAND ALUMINA COMPUTERSHARE QANTAS AIRWAYS SIMS METAL MGMT Tel: +603-2167 9607 stsoo@ta.com.my Close Bollinger Bands RSI Moving Averages DMI Change High Low 4-May Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff 5876.37 -15.97 5893.60 5856.40 5803.91 5886.94 5969.97 51.24 5898.05 5857.83 5818.82 26.97 26.01 19.07 0.96 23.24 58.32 84.63 33.91 30.83 32.91 43.64 32.46 20.74 9.05 4.97 12.88 7.51 5.40 3.64 91.92 14.22 18.51 7.28 9.58 15.35 4.90 1.71 15.04 4.42 12.20 0.03 -1.07 -0.72 -0.41 -0.52 -0.18 0.25 0.32 -0.25 -0.07 -0.25 -0.10 -0.02 0.03 0.01 0.38 0.13 0.09 0.05 0.04 0.15 -0.02 -0.01 0.33 0.06 -0.11 23.30 59.00 85.80 34.60 31.48 33.80 43.74 32.55 20.79 9.16 5.09 13.01 7.62 5.40 3.73 92.22 14.30 18.63 7.33 9.63 15.36 4.92 1.73 15.13 4.43 12.30 22.92 57.85 84.32 33.81 30.66 32.78 43.35 32.19 20.38 9.03 4.95 12.74 7.43 5.33 3.61 90.33 14.09 18.35 7.23 9.48 15.15 4.85 1.67 14.88 4.36 12.06 22.86 57.85 84.09 33.86 30.80 32.16 42.93 31.64 20.26 8.90 4.68 12.41 7.05 5.12 3.41 85.21 12.73 17.24 7.06 8.90 14.95 4.68 1.71 13.28 3.69 11.41 24.20 60.01 85.98 34.61 31.86 33.16 44.12 32.66 23.11 9.09 5.57 12.79 7.36 5.27 3.67 89.63 13.52 18.05 7.32 10.17 15.39 4.85 1.78 14.15 4.06 12.12 25.53 62.17 87.87 35.36 32.92 34.16 45.32 33.67 25.96 9.27 6.45 13.17 7.66 5.43 3.94 94.06 14.31 18.87 7.57 11.44 15.84 5.02 1.86 15.02 4.42 12.83 37.65 40.89 43.27 41.11 39.09 47.42 46.65 52.70 27.66 51.56 30.99 52.74 62.01 68.91 48.57 59.55 74.45 57.79 52.53 32.33 52.29 58.08 40.19 70.26 83.75 50.17 23.74 59.70 86.34 34.66 32.05 33.48 43.62 32.29 22.01 9.11 5.26 12.79 7.38 5.31 3.56 91.06 13.83 18.35 7.23 9.60 15.56 4.90 1.78 14.36 4.18 12.05 24.15 60.07 85.56 34.56 31.78 32.99 44.20 32.27 22.91 8.97 5.79 12.79 7.19 5.20 3.70 89.24 13.38 17.93 7.24 10.30 15.25 4.77 1.78 14.06 4.01 12.24 24.51 61.01 84.86 34.49 31.61 32.74 43.88 31.84 22.55 8.87 6.10 12.74 6.94 5.11 3.71 88.63 13.36 18.12 7.14 10.33 14.87 4.71 1.82 13.96 3.90 12.42 17.78 18.34 19.68 19.52 20.84 20.93 19.47 25.89 19.25 24.65 8.70 22.87 37.00 22.77 26.12 31.10 38.95 25.03 22.57 15.13 25.17 20.77 19.44 34.33 38.24 23.56 36.84 33.05 28.79 27.72 34.99 22.78 24.44 25.57 41.13 16.64 39.06 19.60 22.28 7.84 26.96 24.13 13.26 14.34 23.49 38.84 26.13 21.94 35.08 18.16 7.82 20.09 18.29 15.43 14.84 12.64 16.35 18.31 17.42 14.89 26.42 25.86 45.26 13.92 24.94 34.51 18.78 19.96 22.59 22.13 15.56 40.17 22.75 20.45 11.53 20.32 33.39 13.08 (19.06) (14.71) (9.11) (8.20) (14.15) (1.84) (4.97) 0.32 (21.88) 8.02 (30.36) 3.27 14.71 14.93 (0.83) 6.97 25.70 10.69 (0.92) (23.71) (0.96) (1.17) (15.64) 16.18 30.43 3.46 www.taonline.com.my MACD DMI MACD DMI MACD Line Signal Diff Recent Signal Signal Change 26.76 29.03 (2.270) BUY SELL - SELL -0.31 -0.23 (0.079) SELL SELL -0.48 -0.46 (0.021) SELL SELL - SELL 0.35 0.52 (0.171) SELL SELL 0.05 0.11 (0.067) SELL SELL 0.09 0.19 (0.105) SELL SELL 0.25 0.29 (0.032) SELL SELL SELL SELL -0.17 -0.03 (0.137) SELL SELL 0.09 0.18 (0.097) BUY SELL -0.51 -0.11 (0.400) SELL SELL 0.07 0.08 (0.013) BUY SELL -0.29 -0.28 (0.017) SELL SELL 0.04 0.02 0.024 BUY BUY 0.12 0.14 (0.014) BUY SELL 0.07 0.06 0.010 BUY BUY -0.05 -0.05 (0.004) SELL SELL 1.16 0.82 0.343 BUY BUY 0.23 0.15 0.082 BUY BUY 0.17 0.09 0.080 BUY BUY 0.01 0.04 (0.024) SELL SELL -0.29 -0.20 (0.087) SELL SELL 0.17 0.21 (0.039) SELL SELL SELL 0.07 0.07 (0.003) SELL SELL SELL -0.02 -0.01 (0.006) SELL SELL 0.26 0.15 0.108 BUY BUY 0.14 0.10 0.041 BUY BUY -0.04 -0.10 0.058 BUY BUY - The table below consists of the top 30 ASX 200 Index component stocks, weighted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. 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. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
41. TA Securities A Member of the TA Group 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. Fundamentals of Foreign Technical Picks Bloomberg Ticker Stock Name BHP AU BHP BILLITON LTD RIO AU RIO TINTO LTD CBA AU COMMONW BK AUSTR WBC AU WESTPAC BANKING ANZ AU AUST AND NZ BANK NAB AU NATL AUST BANK WES AU WESFARMERS LTD WPL AU WOODSIDE PETRO NCM AU NEWCREST MINING WFD AU WESTFIELD GROUP FMG AU FORTESCUE METALS QBE AU QBE INSURANCE ORG AU ORIGIN ENERGY AMP AU AMP LTD STO AU SANTOS LTD MQG AU MACQUARIE GROUP SUN AU SUNCORP GROUP LT ORI AU ORICA LTD OSH AU OIL SEARCH LTD CCL AU COCA-COLA AMATIL AMC AU AMCOR LTD SGP AU STOCKLAND AWC AU ALUMINA LTD CPU AU COMPUTERSHARE LT QAN AU QANTAS AIRWAYS SGM AU SIMS METAL MGMT PER(x) EPS ($) Div Yield(%) Close Target Price % upside 23.24 27.70 16% 58.32 70.56 17% 4.65 3.45 9.3 12.5 4.690 3.524 84.63 83.86 -1% 5.65 5.87 15.0 14.4 5.012 5.164 33.91 34.40 1% 2.42 2.52 14.0 13.5 5.497 5.547 30.83 32.08 4% 2.34 2.42 13.2 12.7 5.222 32.91 33.05 0% 2.42 2.48 13.6 13.2 43.64 43.44 0% 2.58 2.62 16.9 32.46 33.15 2% 1.26 1.44 20.74 22.25 7% 0.62 9.05 9.48 5% 52week Price % Chg 2017 2018 2017 2018 2017 2018 High Low YTD 1.46 1.25 11.8 13.8 3.688 3.438 27.96 17.29 -7.26 69.80 41.51 -2.64 87.74 69.22 2.69 35.39 27.57 4.02 5.287 32.95 22.66 1.35 5.968 5.943 34.09 23.90 7.30 16.7 5.027 5.108 46.06 38.62 3.56 19.0 16.7 3.142 3.515 33.97 25.10 4.17 0.83 24.6 18.5 0.718 1.066 27.20 16.35 2.42 0.33 0.36 20.3 18.7 2.829 2.884 11.14 8.21 -3.52 -15.62 4.97 6.20 20% 0.77 0.50 4.8 7.4 6.177 3.843 7.27 2.81 12.88 13.71 6% 0.64 0.80 14.9 11.9 3.307 3.882 13.28 9.22 3.70 7.51 7.36 -2% 0.30 0.55 25.1 13.6 0.000 1.411 7.62 4.69 13.96 5.40 5.31 -2% 0.36 0.37 15.2 14.4 5.370 5.630 5.96 4.39 7.14 3.64 4.34 16% 0.12 0.17 22.3 16.0 0.934 1.813 5.07 3.30 -9.45 91.92 90.52 -2% 6.15 6.38 14.9 14.4 4.644 4.861 94.75 62.50 5.51 14.22 13.80 -3% 0.90 0.97 15.7 14.6 5.134 5.520 14.30 11.27 5.18 18.51 16.75 -11% 1.05 1.13 17.6 16.3 2.880 3.128 19.49 12.04 4.69 7.28 8.03 9% 0.21 0.24 25.8 22.1 1.195 1.442 7.75 6.19 1.53 -5.34 9.58 9.47 -1% 0.55 0.57 17.3 16.7 4.791 4.916 10.87 7.94 15.35 15.97 4% 0.61 0.65 18.7 17.5 2.775 3.114 16.66 13.62 2.68 4.90 4.83 -1% 0.32 0.34 15.3 14.5 5.245 5.449 5.11 4.03 6.99 1.71 1.79 5% 0.11 0.10 11.8 13.0 6.100 6.041 2.04 1.21 -6.83 15.04 14.07 -7% 0.56 0.62 20.0 18.0 1.782 1.908 15.13 8.63 20.71 4.42 4.53 2% 0.52 0.53 8.45 8.37 3.348 3.824 4.43 2.58 32.73 12.20 12.31 1% 0.63 0.71 19.4 17.1 3.123 3.148 13.62 7.40 -4.91 Note : The above data is based on Bloomberg consensus. 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
42. T e c h n i c a l TA Securities V i e w Friday , May 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 Foreign Technical Stock Watch Hong Kong HSI: 24,683.88 (-12.25, -0.05%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Close Name 4-May HANG SENG 24,683.88 HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA GALAXY 66.35 83.70 6.27 5.03 8.92 23.50 3.72 118.10 5.37 243.80 190.60 97.70 43.55 6.19 18.48 81.80 3.26 32.60 162.30 15.56 74.25 19.52 66.20 22.30 70.65 6.06 49.00 5.89 3.70 10.10 32.50 5.80 45.45 13.20 18.42 9.52 20.75 21.85 13.92 3.66 11.16 11.28 8.64 2.66 2.35 55.00 35.15 42.45 Change High Tel: +603-2167 9607 Lower (12.25) 1.90 0.85 (0.03) (0.04) (0.05) (0.15) (0.03) 0.70 (0.08) (4.60) (1.00) (0.05) (0.15) (0.05) 0.28 0.05 (0.01) 0.40 4.20 0.06 (0.55) (0.22) (0.55) (0.15) 0.60 (0.01) (0.25) (0.04) (0.03) 0.04 0.30 (0.20) 0.45 0.10 (0.26) (0.06) (0.50) (0.45) 0.00 (0.15) 0.00 0.04 0.01 (0.01) (0.01) 0.25 (0.15) (0.85) 24,683.88 24,530.93 66.85 83.85 6.30 5.06 8.97 23.70 3.76 118.30 5.43 247.60 191.80 98.20 44.05 6.29 18.66 81.95 3.28 32.70 162.30 15.56 74.70 20.15 67.40 22.40 70.75 6.09 49.60 5.93 3.74 10.10 32.50 6.02 45.55 13.20 18.92 9.62 21.35 22.10 14.06 3.81 11.24 11.28 8.66 2.69 2.37 55.00 35.50 43.50 64.45 82.85 6.20 4.99 8.91 23.40 3.70 117.00 5.31 242.80 190.00 96.80 43.35 6.17 18.24 81.40 3.23 32.10 157.10 15.46 73.85 19.30 65.75 21.85 69.90 6.02 48.70 5.85 3.66 9.98 31.95 5.77 44.95 13.08 18.36 9.48 20.50 21.80 13.88 3.63 11.04 11.10 8.56 2.66 2.32 54.20 34.90 41.85 RSI Bollinger Bands Low 23,792.31 61.63 82.03 6.11 4.90 8.84 22.45 3.62 114.63 5.38 218.51 189.13 93.08 41.56 6.15 17.76 79.29 3.20 30.73 153.24 15.18 72.58 19.40 65.62 22.19 66.72 4.71 48.39 5.77 3.66 9.83 30.79 5.75 43.47 12.75 17.91 9.50 20.84 21.75 13.63 3.72 10.79 10.74 8.23 2.49 2.32 46.62 34.69 41.70 Mid stsoo@ta.com.my Upper 14d 24,297.88 24,803.45 62.35 63.53 84.29 6.26 5.03 9.22 23.35 3.73 116.88 5.60 233.94 193.45 95.62 42.89 6.35 18.14 81.32 3.29 31.68 157.19 15.58 75.90 20.18 66.55 22.80 68.71 5.27 49.23 5.95 3.96 10.38 31.84 6.13 44.42 13.28 18.71 9.69 21.90 22.37 14.06 3.96 11.13 11.06 8.51 2.73 2.37 50.65 36.29 42.97 65.43 86.54 6.40 5.16 9.60 24.25 3.84 119.12 5.82 249.37 197.76 98.17 44.22 6.54 18.52 83.34 3.38 32.63 161.14 15.98 79.21 20.97 67.48 23.42 70.70 5.84 50.06 6.13 4.25 10.94 32.89 6.50 45.37 13.82 19.51 9.88 22.96 22.99 14.50 4.20 11.48 11.37 8.78 2.97 2.42 54.67 37.90 44.23 71.26 44.85 49.95 48.37 34.62 50.17 43.86 59.38 23.87 66.17 40.38 64.00 58.68 44.12 63.24 57.47 38.15 66.00 63.67 55.53 37.10 40.12 49.08 35.17 67.68 83.95 55.55 43.45 31.51 46.74 58.24 26.53 73.51 47.69 48.26 41.89 37.56 44.48 44.93 34.84 49.89 57.31 56.41 34.95 46.47 76.27 44.97 51.67 Moving Averages 10d 24,379.24 63.70 83.40 6.26 5.03 9.05 23.29 3.72 116.74 5.50 240.58 191.75 95.92 43.02 6.29 18.06 80.84 3.26 31.55 156.88 15.43 74.67 19.93 66.46 22.76 69.23 5.43 49.18 5.95 3.83 10.17 31.81 5.99 44.67 13.07 18.84 9.65 21.74 22.17 13.92 3.94 11.13 11.09 8.50 2.68 2.36 51.76 35.68 42.68 30d www.taonline.com.my DMI 50d DI + DMI MACD DI - ADX Diff Line Signal Diff MACD Recent Signal DMI MACD Signal Change 24,320.06 24,132.39 29.39 19.92 18.06 9.47 148.53 100.30 48.231 BUY BUY - - 63.47 85.42 6.30 5.08 9.20 23.70 3.80 116.14 5.67 231.17 194.47 96.08 43.14 6.29 18.22 81.11 3.43 31.81 157.65 15.50 76.54 20.32 67.11 23.08 68.27 5.24 48.78 6.01 3.99 10.37 31.95 6.32 43.99 13.45 18.48 9.72 21.94 22.27 14.18 3.92 11.16 11.10 8.53 2.85 2.38 50.37 36.03 42.52 63.73 85.48 6.30 5.07 9.18 23.80 3.84 114.82 5.76 223.44 194.59 95.74 42.63 6.18 17.40 80.04 3.48 31.59 158.61 15.30 77.92 20.12 65.59 23.48 68.50 5.27 47.34 6.06 4.02 10.01 32.11 6.54 42.98 13.37 18.17 9.79 21.66 21.98 14.22 3.98 11.27 11.14 8.52 2.95 2.38 49.90 34.87 40.63 14.64 25.68 24.92 22.43 25.15 17.56 30.34 19.94 36.45 11.65 22.21 17.42 13.03 21.74 14.38 17.74 24.04 18.90 16.09 19.00 23.75 23.78 16.54 28.01 8.32 10.68 19.96 29.49 26.93 18.61 18.55 29.57 14.33 18.73 14.67 25.73 30.10 17.72 18.33 28.18 16.45 21.38 15.46 21.83 21.40 10.77 23.65 18.97 17.28 22.28 12.81 15.16 21.50 17.29 19.64 15.82 26.04 38.00 16.67 21.48 27.33 17.78 19.08 24.50 32.20 22.65 22.79 31.47 19.49 14.24 19.55 14.30 23.96 22.28 25.51 16.78 16.43 20.68 16.61 29.29 35.14 22.92 31.20 13.73 16.16 16.89 10.88 12.20 19.20 20.95 11.97 23.59 20.40 24.65 20.23 32.73 32.71 (8.69) (4.72) (3.23) (11.20) 3.85 (9.62) 0.14 (24.26) 19.68 (7.67) 6.77 13.87 (3.79) 9.70 3.57 (11.98) 7.20 10.70 (4.55) (5.55) (5.80) 5.56 (12.61) 18.39 47.89 4.48 (9.76) (13.59) (4.02) 2.32 (18.86) 17.20 (2.89) 7.31 (8.98) (10.75) (1.81) 0.64 (11.54) 7.98 (3.26) 5.98 (6.61) 8.39 29.57 (1.54) 4.28 0.32 -0.77 0.01 0.00 -0.07 -0.06 -0.02 0.79 -0.10 6.47 -0.89 0.44 0.25 0.02 0.18 0.41 -0.07 0.11 0.17 0.04 -0.95 -0.08 0.20 -0.23 0.54 0.14 0.51 -0.02 -0.08 -0.01 0.03 -0.17 0.61 -0.09 0.19 -0.03 -0.07 0.05 -0.07 -0.04 0.00 0.02 0.02 -0.08 -0.01 1.25 0.04 0.57 0.335 (0.041) 0.007 0.006 (0.034) 0.079 0.008 (0.097) (0.014) 0.836 (0.197) 0.320 0.116 (0.027) (0.027) 0.022 0.007 0.106 0.589 (0.024) 0.008 (0.071) (0.147) (0.029) 0.249 0.088 (0.178) 0.005 (0.032) (0.071) 0.130 (0.006) (0.004) (0.011) (0.092) (0.017) (0.161) (0.066) (0.012) (0.034) 0.022 0.048 0.019 0.003 (0.004) 0.590 (0.249) (0.180) BUY SELL SELL SELL SELL BUY SELL BUY SELL BUY SELL BUY BUY SELL BUY BUY SELL BUY BUY SELL SELL SELL BUY SELL BUY BUY BUY SELL SELL SELL BUY SELL BUY SELL BUY SELL SELL SELL BUY SELL BUY SELL BUY SELL BUY BUY SELL BUY BUY SELL BUY BUY SELL BUY BUY SELL SELL BUY SELL BUY BUY SELL SELL BUY BUY BUY BUY SELL BUY SELL SELL SELL BUY BUY SELL BUY SELL SELL BUY SELL SELL SELL SELL SELL SELL SELL SELL SELL BUY BUY BUY BUY SELL BUY SELL SELL SELL BUY SELL - SELL - 47.34 17.00 20.19 19.20 13.95 21.40 20.72 20.08 12.18 31.33 14.54 24.19 26.90 17.95 24.08 21.31 12.06 26.10 26.79 14.45 18.21 17.98 22.10 15.40 26.71 58.58 24.44 19.73 13.34 14.60 20.87 10.71 31.53 15.84 21.99 16.74 19.35 15.91 18.97 16.64 24.42 18.11 21.45 15.22 29.78 40.34 22.12 23.25 -0.02 -0.73 0.00 0.00 -0.04 -0.13 -0.03 0.88 -0.08 5.63 -0.69 0.12 0.14 0.05 0.21 0.38 -0.08 0.00 -0.41 0.07 -0.96 -0.01 0.34 -0.21 0.29 0.06 0.69 -0.02 -0.05 0.06 -0.10 -0.16 0.61 -0.08 0.28 -0.01 0.10 0.11 -0.06 0.00 -0.03 -0.02 0.00 -0.08 -0.01 0.65 0.29 0.75 The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. 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. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
43. TA Securities A Member of the TA Group 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. Fundamentals of Foreign Technical Picks Bloomberg Ticker 5 941 939 1398 883 2628 3988 16 857 700 388 1 2318 386 1088 2 494 2388 11 3 19 101 4 688 6 1880 12 3328 1898 762 23 330 66 83 291 17 1109 144 836 2600 293 267 1199 2038 678 1299 1928 27 HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK HK EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price % upside 2017 2018 2017 2018 2017 2018 High Low YTD HSBC CH MOBILE CCONB ICBC CNOOC CH LIFE BOC SHK PROP PETRO CH TENCENT HKSE CK HUTCHISON PING AN SINOPEC CORP CH SHENHUA CLP LI & FUNG BOC HK HS BANK HK&CH GAS SWIRE HL PROP WHARF CH OV LAND POWER ASSETS BELLE HENDERSON BOCOMM CH COAL CH UNICOM BK EASIA ESPRIT MTR SINO LAND CH RES NEW WORLD CH RES LAND CH MERCHANT CH RES POWER ALCORP CATHAY CITIC COSCO FIH MOBILE LTD GENHK AIA SANDS CHINA LTD GALAXY 66.35 63.34 -5% 0.6 0.7 14.2 13.0 0.8 0.8 69.10 44.50 6.59 83.70 105.99 21% 5.6 6.1 13.1 12.2 3.1 3.4 99.30 80.30 1.82 6.27 7.64 18% 0.9 1.0 5.9 5.6 4.5 4.8 6.55 4.50 5.03 5.03 6.08 17% 0.8 0.8 5.7 5.4 4.7 4.9 5.27 3.82 8.92 11.25 21% 0.6 0.8 13.6 10.3 3.7 3.9 10.88 8.70 -8.04 23.50 28.29 17% 0.9 1.1 22.9 18.6 1.3 1.5 25.50 16.00 16.34 3.72 4.47 17% 0.6 0.6 5.7 5.4 4.7 5.1 4.08 2.90 8.14 118.10 129.22 9% 8.8 9.6 13.3 12.3 3.4 3.5 123.30 85.40 20.51 8.17 5.37 6.71 20% 0.2 0.4 19.6 12.5 2.0 3.0 6.38 4.92 -7.09 243.80 261.98 7% 6.2 7.9 34.9 27.3 0.3 0.4 248.40 152.20 28.52 190.60 197.45 3% 5.7 6.3 33.6 30.2 2.7 2.9 213.20 175.00 4.04 97.70 113.98 14% 9.3 10.1 10.5 9.7 2.9 3.2 103.90 80.60 11.15 43.55 44.95 55.80 22% 3.7 4.1 10.4 9.4 1.6 1.8 32.50 12.24 6.19 7.34 16% 0.5 0.5 12.1 11.0 4.1 4.5 6.57 4.96 12.55 18.48 19.31 4% 1.6 1.5 10.2 10.8 3.2 3.2 19.78 11.40 26.58 81.80 79.90 -2% 5.1 5.2 16.2 15.8 3.5 3.6 84.35 69.65 14.81 3.16 -3% 0.0 0.0 15.0 13.5 0.8 0.8 3.18 -4.40 32.60 35.71 9% 2.7 2.9 12.2 11.4 4.1 4.3 32.70 21.01 17.48 162.30 3.26 154.53 -5% 9.2 10.1 17.6 16.1 3.9 4.1 164.40 127.60 12.47 15.56 12.78 -22% 0.6 0.6 26.1 25.1 2.4 2.6 15.92 12.95 13.25 74.25 77.17 4% 5.0 5.2 15.0 14.2 3.7 3.9 94.40 72.20 0.27 19.52 20.19 3% 1.2 1.1 16.2 18.0 3.8 3.8 21.00 13.64 18.73 66.20 66.22 0% 4.7 4.8 14.2 13.7 3.3 3.5 69.95 40.05 28.42 22.30 28.55 22% 3.2 3.6 7.0 6.2 3.7 4.2 27.85 20.15 8.52 70.65 74.41 5% 3.5 3.6 20.4 19.7 4.0 4.0 72.92 62.78 10.56 -12% 0.4 4.0 4.77 6.06 5.42 0.4 13.3 13.3 4.0 6.15 4.07 38.99 49.00 50.20 2% 3.3 3.2 14.8 15.1 3.2 3.2 50.20 39.64 18.79 5.89 6.00 2% 0.9 0.9 5.9 5.6 4.6 4.9 6.44 4.46 4.99 3.70 4.71 21% 0.3 0.3 10.1 10.8 2.6 2.2 4.88 2.92 0.54 10.10 12.49 19% 0.2 0.4 42.2 21.9 0.7 1.4 11.20 7.70 11.85 32.50 25.91 34.75 26.35 -25% 2.2 1.8 14.6 18.1 2.9 2.5 5.80 5.89 1% 0.0 0.2 200.0 36.0 0.0 1.3 7.62 5.34 -4.76 45.45 39.91 -14% 1.6 1.6 28.7 27.8 7.3 2.5 45.55 35.55 20.56 9.43 13.20 13.84 5% 0.8 0.8 15.7 15.8 3.9 3.9 14.48 10.96 13.60 18.42 19.03 3% 0.6 0.7 28.9 24.8 1.0 1.2 19.60 14.46 19.61 9.52 11.17 15% 0.8 0.8 12.3 11.6 4.6 4.6 10.46 6.91 16.10 20.75 28.25 27% 2.8 3.2 7.5 6.5 3.8 4.4 23.85 16.50 18.98 21.85 24.73 12% 1.6 1.7 13.5 13.1 3.4 3.6 23.80 18.80 13.57 13.92 15.14 8% 1.3 1.5 10.3 9.2 6.0 6.1 15.10 10.70 12.99 2.25 14.38 4.65 21% 0.2 0.2 16.9 13.6 11.16 9.90 -13% -0.2 0.2 N/A 55.0 0.5 0.7 13.08 10.00 9.41 11.28 3.66 12.35 9% 1.6 1.7 7.2 6.7 3.0 0.4 3.8 0.6 12.78 4.45 10.54 1.62 8.64 9.09 5% 0.1 0.1 14.1 13.1 0.4 0.4 8.87 7.28 10.91 2.66 3.08 14% 0.0 0.0 48.8 13.7 0.5 0.6 3.34 2.31 2.35 2.45 4% 0.0 0.0 N/A N/A 0.0 0.0 2.80 2.00 3.98 55.00 60.23 9% 0.4 0.4 19.1 17.0 0.2 0.3 55.00 42.30 25.71 35.15 38.27 8% 0.2 0.2 23.8 21.2 0.7 0.7 39.30 24.60 4.30 42.45 44.72 5% 1.7 1.9 24.7 22.7 1.2 1.3 44.45 21.73 26.38 8.57 Note : The above data based on Bloomberg consensus. 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
44. T e c h n i c a l TA Securities V i e w Friday , May 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 • Foreign Technical Stock Watch FSSTI: 3,228.62 (-9.19, -0.28%) Singapore THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Stock Name FSSTI SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI YZJ Tel: +603-2167 9607 Close Bollinger Bands RSI Change High Low 4-May Lower Mid Upper 14d 3,228.62 (9.19) 3,239.76 3,218.41 3,113.21 3,171.34 3,229.47 67.89 3.73 20.45 10.16 23.30 64.99 3.47 7.68 3.64 1.09 6.63 7.43 10.35 2.40 0.12 10.83 42.04 3.39 46.85 0.37 3.80 1.91 1.96 3.15 1.79 2.73 2.78 3.86 0.49 1.23 (0.01) (0.38) (0.02) 0.06 (0.08) (0.07) (0.07) (0.02) (0.03) 0.14 0.00 0.07 0.03 (0.01) (0.02) (0.18) (0.01) (0.68) 0.01 0.02 0.02 (0.01) 0.15 0.15 0.02 0.00 0.03 0.00 0.07 3.75 20.78 10.22 23.49 65.26 3.50 7.73 3.68 1.10 6.66 7.45 10.35 2.40 0.13 10.83 42.49 3.41 48.32 0.37 3.80 1.91 1.97 3.20 1.82 2.73 2.79 3.86 0.49 1.24 3.73 20.35 10.11 23.05 64.91 3.45 7.67 3.61 1.08 6.45 7.41 10.27 2.35 0.12 10.66 41.95 3.38 46.70 0.36 3.74 1.89 1.96 3.03 1.63 2.68 2.76 3.81 0.48 1.16 3.65 18.25 9.37 21.02 63.81 3.44 7.58 3.59 1.02 6.36 7.33 10.08 2.29 0.12 9.92 41.02 3.33 44.08 0.34 3.64 1.86 1.95 3.00 1.61 2.57 2.73 3.59 0.45 1.06 3.78 19.27 9.73 22.01 65.21 3.52 7.70 3.68 1.08 6.70 7.50 10.22 2.34 0.16 10.43 41.84 3.45 46.39 0.36 3.75 1.92 1.99 3.10 1.77 2.68 2.82 3.70 0.49 1.14 3.92 20.30 10.08 23.00 66.62 3.59 7.83 3.77 1.14 7.04 7.68 10.37 2.40 0.21 10.95 42.67 3.57 48.70 0.38 3.86 1.97 2.02 3.20 1.93 2.78 2.90 3.82 0.52 1.21 34.94 69.30 75.54 74.81 49.50 40.25 54.94 46.18 54.34 46.60 41.07 60.70 70.09 23.87 68.49 54.49 39.53 55.07 49.86 58.68 46.78 40.42 55.46 52.86 61.89 41.60 77.04 47.51 66.44 stsoo@ta.com.my Moving Averages 10d 30d 50d DI + 3,178.38 3,166.63 3,153.94 32.81 DI 17.28 ADX 16.15 Diff 15.53 MACD Line Signal Diff 16.47 9.12 7.354 DMI MACD DMI MACD Recent Signal Signal Change BUY BUY - 3.74 19.49 9.82 22.17 64.91 3.53 7.69 3.68 1.10 6.55 7.44 10.26 2.36 1.43 10.58 42.10 3.42 47.34 0.36 3.79 1.90 1.98 3.06 1.70 2.72 2.78 3.73 0.48 1.14 24.47 11.38 11.96 16.88 15.29 22.18 12.01 17.08 22.77 30.81 21.99 17.10 9.47 44.40 17.79 13.26 29.95 17.73 20.44 14.49 25.68 23.77 25.71 30.30 18.16 20.57 8.72 24.96 13.81 36.11 19.70 19.19 20.33 16.73 18.72 43.14 15.02 27.38 21.06 15.13 9.86 48.30 51.17 27.52 31.43 21.62 24.67 22.06 18.28 26.20 19.58 26.89 27.30 29.41 14.46 27.71 24.76 27.77 (15.50) 34.03 24.76 27.07 (2.48) (9.68) 14.15 (0.03) 2.90 (6.13) (7.53) (1.80) 27.11 (36.06) 11.83 12.31 (11.63) 6.38 3.43 3.37 (10.94) (6.80) 2.51 5.96 8.32 (4.38) 29.31 (7.09) 17.42 -0.04 0.29 0.11 0.26 -0.08 -0.01 0.09 0.01 0.02 -0.08 -0.05 0.06 0.04 -0.02 0.19 0.38 -0.03 0.81 0.00 0.04 -0.01 0.00 -0.03 -0.04 0.05 -0.02 0.03 -0.01 0.02 SELL BUY BUY BUY SELL SELL BUY SELL BUY SELL SELL SELL BUY SELL BUY BUY SELL BUY BUY BUY SELL SELL BUY BUY BUY SELL BUY SELL BUY 3.83 19.20 9.70 21.97 65.30 3.52 7.62 3.67 1.06 6.75 7.55 10.19 2.33 1.72 10.37 41.75 3.49 45.75 0.37 3.73 1.91 1.98 3.12 1.81 2.63 2.84 3.70 0.50 1.14 3.88 19.12 9.65 21.83 65.14 3.56 7.37 3.66 1.03 6.81 7.55 10.09 2.24 1.90 10.17 40.69 3.49 44.89 0.37 3.71 1.94 1.97 3.17 1.83 2.58 2.85 3.69 0.51 1.11 8.97 45.41 36.72 43.95 12.81 12.51 26.16 17.06 25.67 24.68 14.46 15.29 36.58 8.34 29.62 25.57 18.32 24.11 23.87 17.86 14.74 16.97 28.23 36.26 26.49 16.19 38.03 17.87 31.23 DMI www.taonline.com.my -0.04 0.12 0.05 0.11 -0.05 -0.02 0.11 0.01 0.02 -0.06 -0.04 0.06 0.04 -0.01 0.14 0.44 -0.03 0.78 -0.01 0.04 -0.01 0.01 -0.03 -0.03 0.05 -0.02 0.01 -0.01 0.01 0.001 0.166 0.056 0.153 (0.032) 0.006 (0.025) (0.004) (0.000) (0.016) (0.009) 0.006 (0.001) (0.003) 0.047 (0.057) (0.004) 0.034 0.002 (0.000) 0.001 (0.006) 0.001 (0.007) 0.002 (0.003) 0.019 0.003 0.007 BUY - BUY BUY BUY BUY SELL BUY SELL SELL SELL SELL SELL - SELL SELL SELL BUY SELL SELL BUY SELL SELL BUY BUY BUY SELL - SELL BUY - BUY SELL BUY BUY BUY SELL BUY BUY SELL BUY BUY BUY - The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section. 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. Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on the given date. Page 1 of 2
45. p 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. Fundamentals of Foreign Technical Picks Bloomberg Ticker ST DBS OCBC UOB JM WIL HKL CAPL GENS KEP SGX SIA FNN NOBL CIT JS SPH JCNC GGR STE OLAM CT SCI SMM CD STH SIE IFAR SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP SP EPS ($) PER(x) Div Yield(%) 52week Price % Chg Stock Name Close Target Price SINGTEL DBS OCBC UOB JARDINE M. WILMAR HK LAND CAPLAND GENSP KEPPEL SGX SIA FNN NOBLE CITY DEV JARDINE S. SG PRESS JARDINE C&C GOLDEN AGRI SG TECH OLAM INT CAP TRUST SEMBCORP SEMCORP M. CMFT DELGRO STARHUB SIA ENG IFOOD AGRI 3.73 4.21 20.45 10.16 23.30 22.06 -6% 2.0 2.1 11.9 11.1 3.1 3.2 23.49 17.41 14.22 64.99 64.13 -0.01 4.1 4.4 15.8 14.8 2.4 2.5 67.27 52.42 17.63 3.47 3.84 10% 0.2 0.2 12.6 11.8 2.0 2.2 4.00 2.96 -3.34 7.68 7.54 -2% 0.4 0.4 19.5 18.9 2.5 2.6 7.88 5.79 21.33 3.64 4.13 12% 0.2 0.2 17.1 17.8 2.8 2.9 3.79 2.85 20.53 1.09 1.07 -1% 0.0 0.0 31.0 28.6 2.7 2.8 1.14 0.69 19.89 6.63 7.06 6% 0.5 0.5 13.8 12.6 3.3 3.6 7.23 5.10 14.51 7.43 7.95 7% 0.3 0.4 22.8 20.9 3.9 4.2 7.84 6.96 3.77 10.35 9.89 -5% 0.4 0.4 23.4 24.1 3.4 2.6 11.67 9.60 7.03 2.40 2.19 -10% 0.1 0.1 31.2 31.6 1.8 1.8 2.41 1.92 14.83 YZJSGD SP YZJ % upside 2017 2018 2017 2018 2017 2018 High Low YTD 11% 0.2 0.3 15.4 14.6 4.8 5.0 4.36 3.59 2.19 20.44 0% 1.822 1.989 11.2 10.3 3.0 3.1 20.83 14.63 17.94 9.53 -7% 0.9 0.9 11.8 10.8 3.6 3.8 10.22 8.21 13.90 0.13 0.22 0.40 0.0 0.0 6.2 4.5 0.8 0.8 0.33 0.11 -22.94 10.83 10.92 1% 0.6 0.7 17.0 15.7 1.4 1.4 10.93 7.83 31.29 42.04 41.42 -2% 2.8 3.0 15.2 14.2 0.8 0.8 43.78 27.35 26.63 3.39 3.28 -3% 0.1 0.2 22.8 22.5 5.0 4.8 4.05 3.36 -3.97 46.85 50.63 7% 2.2 2.5 15.1 13.7 1.9 2.0 48.50 31.60 13.63 0.37 0.38 3% 0.0 0.0 16.3 14.5 1.9 2.2 0.45 0.33 -15.12 3.80 3.68 -3% 0.2 0.2 22.0 20.9 4.1 4.2 3.82 3.01 17.65 1.91 1.99 5% 0.1 0.1 14.1 13.6 2.5 2.6 2.17 1.58 -3.30 1.96 2.12 8% 0.1 0.1 17.2 16.6 5.6 5.6 2.25 1.87 3.98 3.15 3.30 5% 0.2 0.3 13.8 11.4 2.8 3.3 3.38 2.44 10.53 1.79 1.68 -7% 0.0 0.1 38.1 28.0 1.4 1.6 2.09 1.22 29.71 2.73 2.93 7% 0.2 0.2 17.5 16.7 4.0 4.4 3.02 2.37 10.53 2.78 2.59 -7% 0.2 0.2 17.3 18.4 5.8 5.6 3.97 2.73 -1.07 3.86 3.51 -10% 0.2 0.2 25.1 24.4 4.0 3.8 3.91 3.35 14.54 0.49 0.59 17% 451 500 10.4 9.4 15111 16908 0.60 0.44 -6.67 1.23 1.14 -8% 0.5 0.5 12.4 12.9 16.1 16.1 1.24 0.71 50.92 Note : The above data based on Bloomberg consensus. 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