Bursa Malaysia Daily Market Report - 6 July

Transcription

1. Thursday , 06 July, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. Lotte Chemical Titan Holding Bhd: Hiccup Before Debut 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 Thursday, 06 July 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (05.07.2017) (mil) Main Market 963.0 Warrants 121.4 ACE Market 394.0 Bond 10.0 ETF 0.0 Total 1,488.4 Off Market 13.9 Volume +/-chg (RMmn) -334.9 1,564.8 -28.0 22.6 -49.2 99.3 4.4 3.3 -0.07 0.0 1,690.0 -4.9 14.0 Value +/-chg -119.7 0.2 3.6 1.6 -0.08 -5.2 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP July Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA Up Down 331 261 41 79 48 43 3 5 1 0 424 388 % chg % YTD chg 1,768.16 12,626.29 17,507.99 1,766.00 6.08 37.75 10.67 4.00 0.35 0.30 0.06 0.23 7.70 10.11 18.98 7.98 21,478.17 6,150.86 7,367.60 20,081.63 2,388.35 25,521.97 3,248.71 1,575.02 5,825.05 3,207.13 1,913.14 5,763.25 -1.10 40.79 10.37 49.28 7.83 132.96 37.54 0.91 -40.31 24.33 16.61 -20.57 -0.01 0.67 0.14 0.25 0.33 0.52 1.17 0.06 -0.69 0.76 0.88 -0.36 8.68 14.26 3.15 5.06 17.86 16.01 12.77 2.08 9.97 3.33 -2.84 1.72 Top 10 KLCI Movers Based on Mkt Cap. Off Market FPI CMMT Review & Outlook Value/ Volume 1.62 0.19 0.25 0.33 1.09 1.14 1.01 (mn) 7.3 @ 3.0 @ (RM) 0.99 1.55 Counter Mkt Cap. (RM’mn) MAYBANK 101,743 TENAGA 79,905 PBBANK 78,543 PCHEM 49,105 AXIATA 42,958 PETGAS 36,804 GENTING 35,545 IOICORP 33,341 MISC 33,032 GENM 32,083 Chg (RM) 0.01 0.02 0.04 0.11 0.01 0.10 0.04 0.56 0.06 0.04 Vol. (mn) 16.51 6.21 1.93 1.44 6.16 1.02 1.60 1.30 2.11 4.49 Sideways trade persisted Wednesday with investors mostly sidelined amid increased geopolitical concerns over the recent North Korea missile test and lack of positive domestic leads. The KLCI ended up 6.08 points at the day's high of 1,768.16, off an opening low of 1,761.17, as gainers edged losers 424 to 388 on slower trade totaling 1.48bn shares worth RM1.69bn. The local market should stay range bound today given the weak technical momentum and pending fresh local market catalysts. Immediate resistance stays at the 50-day moving average (1,773), then 1,782, followed by the recent peak of 1,796, and then the 1,800 psychological level. Better support is from the 100-day moving average at 1,750. The daily stochastics sell signal on Ekovest point to increased downside risk towards the 123.6%FR (RM1.09), with better chart support from the 200-day ma (RM1.05), while immediate overhead resistance is from the 150%FR (RM1.25). On the other hand, bullish momentum on WCT Holdings implies good upside potential towards the 138.2%FP (RM2.18), with next hurdle at the 150%FP (RM2.25), while key support from the 100-day ma (RM2.02) matches the lower Bollinger band. News Bites • • • • • • • • • • • • Important Dates TDM - 1:10 Bonus Issue - BI of 150.5m shares. 1 bonus share for every 10 existing shares. Entitlement Date: 03/07/2017. LISTING ON: 04/07/2017. Petronas Dagangan Bhd is selling its liquefied petroleum gas business in the Philippines to Phoenix Petroleum Philippines Inc for US$124mn. Spring Gallery Bhd said a RM176mn contract to provide professional project management facilities for the development of a 6.02-acre piece of land in Perling, Johor, has now been called off. PRG Holdings Bhd is going to explore the possibility of partnering Singapore-listed oil and gas firm, Mirach Energy Ltd, to undertake property and construction projects in Malaysia and elsewhere. Iskandar Waterfront City Bhd and Iskandar Waterfront Holdings Sdn Bhd has extended the deadline to conclude their planned restructuring to Sept 4 this year, as IWH needed more time to finalise talks on the corporate exercise. A consortium that included Damansara Realty Bhd's subsidiary TMR Urusharta (M) Sdn Bhd has bagged a RM26.2mn contract to provide security management services to RAPID project in Pengerang, Johor. Computer technology and systems provider ECS ICT Bhd said it will be distributing a new product - a new mini camera drone called The Spark, the first pocket camera drone that users can control using hand gestures alone. Rev Asia Bhd's plan to dispose of an entire 70% stake in Rev Asia Holdings Sdn Bhd for RM73.5mn is "fair and reasonable", said independent adviser TA Securities Holdings Bhd. QBE Insurance (M) Bhd expects to continue to grow at above industry average this year, similar to the cumulative annual growth rate of about 16% it achieved over the past five years. The Ministry of Finance has to date received positive response on the request for proposal for the Bandar Malaysia Project. After close to a year's delay, Bina Puri Holdings Bhd's Indonesian power subsidiary PT Mega Power Makmur Tbk made a strong debut on the Indonesia Stock Exchange when it opened 70% above its offer price. The China Caixin/Markit services purchasing managers' index dropped to 51.6 in June from 52.8 in May, when a surprise rebound broke four straight months of declines. The US orders slumped by 0.8% to $464.9bn in May after falling by a revised 0.3% in April. Exchange Rate USD/MYR 4.2993 0.0012 USD/JPY 113.64 0.4500 EUR/USD 1.132 -0.0031 Commodities Futures Palm Oil (RM/mt) 2,520.00 23.00 Crude Oil ($/Barrel) 45.61 -1.44 Gold ($/tr.oz.) 1,226.50 7.00 SCC - 1:10 Bonus Issue - BI of 4.3m shares. 1 bonus share for every 10 existing shares. Ex-Date: 06/07/2017. Entitlement Date: 10/07/2017. LISTING ON: 11/07/2017. 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 Thursday , July 06, 2017 FBMKLCI: 1,768.16 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 Range Bound on Lack of Leads Sideways trade persisted Wednesday with investors mostly sidelined amid increased geopolitical concerns over the recent North Korea missile test and lack of positive domestic leads. The KLCI ended up 6.08 points at the day’s high of 1,768.16, off an opening low of 1,761.17, as gainers edged losers 424 to 388 on slower trade totaling 1.48bn shares worth RM1.69bn. Immediate Resistance at 1,773/1,782 The local market should stay range bound today given the weak technical momentum and pending fresh local market catalysts. Immediate resistance stays at the 50-day moving average (1,773), then 1,782, followed by the recent peak of 1,796, and then the 1,800 psychological level. Better support is from the 100-day moving average at 1,750. SELL Ekovest & BUY WCT Holdings The daily stochastics sell signal on Ekovest point to increased downside risk towards the 123.6%FR (RM1.09), with better chart support from the 200-day ma (RM1.05), while immediate overhead resistance is from the 150%FR (RM1.25). On the other hand, bullish momentum on WCT Holdings implies good upside potential towards the 138.2%FP (RM2.18), with next hurdle at the 150%FP (RM2.25), while key support from the 100-day ma (RM2.02) matches the lower Bollinger band. Asian Markets Shrug off Missile Launch Asian stock markets traded mostly higher on Wednesday as investors wagered the latest flare-up of tensions on the Korean peninsula would fade away like so many others. South Korea and the U.S have responded to the North's missile launch by conducting an offensive ballistic missile drill. A holiday in the United States and a lack of market catalysts muted Asian trading, although minutes of the Federal Reserve's last meeting due later in the day could signal how committed it was to raising rates again this year and any detail on plans to wind back its massive balance sheet. The Nikkei shares average rose 0.25 percent to 20,081.63, while Korean Kospi ended 0.33 percent higher to close at 2,388.35. In down under, the benchmark ASX200 ended lower by 0.36 percent to close at 5,763.25. China stock markets ended higher helped by a wider quota for Hong Kong institutional investors and a cabinet paper promoting the use of commercial pension money in capital markets. The bluechip CSI300 index rose 1.10 percent to 3,659.68 points, while the Shanghai Composite Index gained 0.76 percent to 3,207.13 points. Tech Stocks Lifts S&P 500 and Nasdaq U.S stock markets traded mostly higher as a rebound in tech stocks offset weakness in the energy sector with oil prices ending their longest string of daily gains in more than five years. The tech sector rose 1 percent, with Advanced Micro Devices, Micron and Nvidia among the best performers in the sector. Oil prices tumbled about 4 percent as more evidence indicated OPEC exports rose last month. Shares of Exxon and Chevron fell by more than 1.5 percent and were among the biggest drags on the Dow and S&P. Meanwhile, the Page 1 of 7
4. TA Securities 6-Jul-17 A Member of the TA Group minutes of last month ’s US Federal Reserve meeting indicated a determination to continue raising rates even with muted inflation levels, which they considered to be temporary and likely to rise over the long run to a targeted level of 2 percent. Minutes of their June ratesetting meeting showed the Fed divided over the exact timing of the move, with a number of officials suggesting they did not want to act any sooner than September. In economic news, factory orders fell 0.8 percent in May, more than expected. Later this week, the U.S government will release its monthly employment report. The Dow Jones Industrial Average fell 1.10 points, or 0.01 percent, to 21,478.17, the S&P 500 gained 3.53 points to 2,432.54 and the Nasdaq Composite added 40.79 points, or 0.67 percent, to 6,150.85. Page 2 of 7
5. TA Securities 6-Jul-17 A Member of the TA Group News In Brief Corporate Petronas Dagangan Bhd is selling its liquefied petroleum gas business in the Philippines to Phoenix Petroleum Philippines Inc for US $124mn (RM532.5mn). PetDag said its whollyowned subsidiary PDB (Netherlands) BV has signed two share purchase agreements with Phoenix Petroleum; one for the sale of Petronas Energy Philippines Inc and the other its 40%-owned affiliate Duta Inc for a combined US$126.1mn, subject to adjustment at completion. In other news, PetDag hopes that cashless payment will make up to 70% of the total transactions at Petronas stations by 2019, up from the current 40%. Retail Business Division Head, Aadrin Azly, said cashless transactions in many countries had accounted for up to 80% of the total volume, to-date. (The Edge Markets/Bernama) Comment: We are neutral on this as it is within expectations and the group's announcement back in May-17. Recall that the group had articulated its strategy of divesting its international operations that do not generate sufficient targeted returns. To recap, back in 2016-17, the group had disposed of its Vietnam operations. Following this Philippines disposal, the only major remaining foreign operations for PetDag are at Thailand. We understand that contribution from regional operations comprise less than 20% of topline with negligible bottomline accretion. Therefore, on the back of this, we maintain our earnings forecast. Nevertheless, we believe the cash proceeds of RM532mn will boost Pet Dag's cashflows, balance sheet (net cash position) and ability to pay dividends (FY16: circa RM700mn). Maintain Sell on Pet Dag with TP of RM21.47 based on 21x FY18 P/E. Spring Gallery Bhd said a RM176mn contract to provide professional project management facilities for the development of a 6.02-acre piece of land in Perling, Johor, has now been called off. Spring Gallery, via its wholly-owned subsidiary Profit Sunland Sdn Bhd, won the contract on April 18 last year. It said Profit Sunland has inked a deed of mutual rescission and revocation with Prinsip Nusantara Sdn Bhd to rescind and revoke the managing contractor agreement entered into in April 2016. (The Edge Markets) After close to a year’s delay, Bina Puri Holdings Bhd’s Indonesian power subsidiary PT Mega Power Makmur Tbk made a strong debut on the Indonesia Stock Exchange when it opened 70% above its offer price. PT Megapower debuted at IDR340 (11 sen), compared with its offer price of IDR200. At market close, the stock stayed firm at IDR340, valuing it at IDR277.8tr. The listing raised IDR49bn for PT Megapower. (Financial Daily) PRG Holdings Bhd is going to explore the possibility of partnering Singapore-listed oil and gas firm, Mirach Energy Ltd, to undertake property and construction projects in Malaysia and elsewhere. It inked a Memorandum of Understanding with Mirach today that will set the stage for formal negotiations and information sharing with regards to the proposed joint venture. (The Edge Markets) Iskandar Waterfront City Bhd (IWCity) and Iskandar Waterfront Holdings Sdn Bhd (IWH) has extended the deadline to conclude their planned restructuring to Sept 4 this year, as IWH needed more time to finalise talks on the corporate exercise. IWCity said the extension was needed to enable IWCity's major shareholder IWH to negotiate in good faith and execute the definitive sale and purchase agreements with the relevant vendors under the restructuring. (The Edge Markets) Warisan TC Holdings Bhd's wholly-owned subsidiary Mayflower Holidays Sdn Bhd (MH) has entered into a joint venture agreement with Agile Quick Services Sdn Bhd (AQS) to offer its travel products and services to customers through an e-commerce platform. Warisan TC said MH had entered into the agreement with AQS to undertake and pursue the business of providing multiple travel products and services via electronic platform. (The Edge Markets) A consortium that included Damansara Realty Bhd's subsidiary TMR Urusharta (M) Sdn Bhd has bagged a RM26.2mn contract to provide security management services to Page 3 of 7
6. TA Securities 6-Jul-17 A Member of the TA Group Petronas 's Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, Johor. Damansara Realty said the consortium comprising TMR, ACME Security Sdn Bhd and AHS Security Sdn Bhd had received a letter of award from Petronas Refinery and Petrochemical Corp Sdn Bhd's subsidiary PRPC Utilities and Facilities Sdn Bhd. It added that the contract will be valid for 21 months, with the estimated contract value of RM26.2mn, with optional services worth RM9.8mn. (The Edge Markets) Computer technology and systems provider ECS ICT Bhd said it will be distributing a new product — a new mini camera drone called The Spark, the first pocket camera drone that users can control using hand gestures alone. ECS ICT said its wholly-owned unit ECS Astar Sdn Bhd has been authorised to distribute the new mini camera drone, which is developed by China-based Da-Jiang Innovations Science and Technology Co Ltd. (The Edge Markets) Rev Asia Bhd's plan to dispose of an entire 70% stake in Rev Asia Holdings Sdn Bhd for RM73.5mn is "fair and reasonable", said independent adviser TA Securities Holdings Bhd. As such, minority shareholders of Rev Asia have been recommended to permit the sale — marking its exit from the advertising and social media business — to Media Prima Bhd, TA Securities said in a circular to shareholders of Rev Asia today. (The Edge Markets) QBE Insurance (M) Bhd expects to continue to grow at above industry average this year, similar to the cumulative annual growth rate of about 16% it achieved over the past five years. Chief Executive Officer, Leo Zanolini said the company had grown profitably with good financial position and had gained market share in many general insurance areas including liability insurance, marine insurance, engineering insurance, as well as property insurance. (Bernama) The Ministry of Finance has to date received positive response on the request for proposal (RFP) for the Bandar Malaysia Project. The RFP is officially opened to interested parties today to bid as master developer of the project. Treasury Secretary-General, Tan Sri Dr Mohd Irwan Serigar Abdullah, who is also the Chairman of TRX City Sdn Bhd and Bandar Malaysia Sdn Bhd, said new criteria and conditions for participation in the RFP would be set, focusing on experience and inclusion in the Fortune 500 companies. (Bernama/Financial Daily) Page 4 of 7
7. TA Securities 6-Jul-17 A Member of the TA Group News In Brief Economy Asia Will Bank Negara Hike Interest Rates ? There is a view emerging out there that Bank Negara Malaysia will have to raise the benchmark overnight policy rate (OPR) by the end of the year or early next year. This view is premised on a strengthening economy, which usually means higher inflation as wages grow, unemployment comes down and consumption picks up. Earlier in the year, the market consensus was for no change in the OPR this year. The last time the OPR was tweaked was almost exactly a year ago, when policymakers decided on a rate cut of 25 basis points to 3%. Then, the economy was weaker. The monetary policy committee meets on July 13 but the market consensus is for no-change in the OPR as it would be too soon for the data to show a firmer trend. But Malaysia’s economy has definitely strengthened, growing 5.6% in the first quarter and there is every indication that the economy will continue to pick up on exports growth and business spending. Indeed, in the coming months, policymakers will change their view on the sources of inflation. The prevalent view is that inflation has been cost-push driven but as private consumption rises, inflation could very well be demand-pull driven. Another factor that will persuade policymakers to look into a rate hike is the weak ringgit. (The Star) China's Services Sector Loses Steam in June: Caixin PMI China's services sector grew at a slower pace in June as new orders slumped, signaling renewed pressure on businesses after a pickup in May and pointing to a softening outlook for the economy, a private business survey showed. The findings reinforced analyst views that the world's second-largest economy is cooling after a strong start to the year, as Beijing cracks down on easy credit to contain a dangerous build-up in debt and defuse financial risks. The Caixin/Markit services purchasing managers' index (PMI) dropped to 51.6 in June from 52.8 in May, when a surprise rebound broke four straight months of declines. The June figure marks the second-lowest business activity level for service providers in over a year. Subdued demand was behind the latest slowdown, as the new business sub-index weakened to 51.9 in June from May's 53.5, hitting its lowest since May 2016. Analysts remain convinced that as deleveraging efforts persist, China's economy will take a hit. They expect quarterly economic growth to have slowed in the second quarter from 6.9% in January-March. The government has set a GDP growth target of around 6.5% for this year. (Reuters) Philippine Inflation Eases More than Forecast Philippine consumer price inflation eased at a faster-than-expected pace in June to the lowest level in five months, figures from the Philippine Statistics Authority showed. The consumer price index climbed 2.8% year-over-year in June, slower than the 3.1% rise in May. Economists had expected the inflation to ease slightly to 3.0%. Moreover, the latest inflation was the weakest since January, when prices had grown 2.7%. Excluding selected food and energy items, core inflation moderated to 2.6% in June from 2.9% in the prior month. Month-on-month, consumer prices edged up 0.1% in June, after remaining flat in May. The statistical office also revealed that producer prices declined at a faster pace of 2.1% annually in May, following a 1.7% fall in the prior month. Monthly, producer prices dropped 0.2% from April, when it decreased by 0.8%. (RTT News) Singapore Private Sector Slows in June – Nikkei Private sector growth in Singapore slowed in June, the latest survey from Nikkei revealed with a PMI score of 50.7. That's down from 51.4 in May, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. Individually, there were weaker rises in both output and total new orders. Employment fell, as did purchasing activity. There was further easing in cost inflation, which led to milder gains in charges. (RTT News) Page 5 of 7
8. TA Securities 6-Jul-17 A Member of the TA Group Japan Services Sector Accelerates In June – Nikkei The services sector in Japan continued to expand in June, and at a faster rate, the latest survey from Nikkei revealed with a PMI score of 53.3. That's up from 53.0 in May, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Individually, both activity and new business improved, while June saw the fastest rate of job creation in four years. Sentiment dipped from May but remained positive. The composite index fell to 52.9 in June from 53.4 in May. (RTT News) United States Fed Minutes Could Show How Inflation Could Sway Rate Rises The Federal Reserve raised interest rates last month by a quarter-percentage point and laid out plans to shrink its portfolio of bonds and other assets. But after its June 13-14 policy meeting, the Fed’s statement, new economic projections and Chairwoman Janet Yellen’s press conference left many questions about officials’ thinking and future course of action. Both the statement and Ms. Yellen’s press conference suggested little worry about inflation’s dip back below the Fed’s 2% target in recent months. In the weeks since the meeting, however, several officials have expressed reservations about raising rates further absent new signs of firming inflation. The minutes could provide more detail on the internal debate. Look for signs of a split among officials over how to react to disappointing inflation numbers. (The Wall Street Journal) U.S. Factory Order Drop More Than Expected in May New orders for U.S. manufactured goods fell by more than expected in the month of May, according to a report released by the Commerce Department. The Commerce Department said factory orders slumped by 0.8% to $464.9 billion in May after falling by a revised 0.3% in April. Economists had expected factory orders to drop by 0.5% compared to the 0.2% decrease originally reported for the previous month. New orders for manufactured durable goods slid by 0.8%, while new orders for manufactured non-durable goods also tumbled by 0.8%, Meanwhile, the report said shipments of manufactured goods inched up by 0.1% in May after coming in virtually unchanged in April. Inventories of manufactured goods edged down by 0.1% in May following six consecutive monthly increases. Despite the modest drop in inventories, the inventories-to-shipments ratio held at 1.38 in May, unchanged from the previous month. (RTT News) Europe and United Kingdom Eurozone PMIs Point to ‘Self-Sustaining Recovery’ Eurozone businesses are in slightly stronger health than previously thought, judging from the latest survey data compiled by IHS Markit, pointing to continuing upward momentum in economic growth. Purchasing managers’ index data, based on surveys of thousands of business across the currency bloc, have produced a final reading of 56.3 for June – below May’s reading but above earlier estimates. The expansion was again led by the manufacturing sector, where production rose to the greatest extent since April 2011. Although the rate of growth in service sector activity moderated, it was still among the strongest seen over the past six years. The latest readings are indicative of the Eurozone growing by an impressive 0.7% in the second quarter. The dip in the PMI in June certainly doesn’t look like the start of a slowdown. Growth of new orders accelerated very slightly to reach the second highest in just over six years, and companies are struggling to satisfy this increase in demand. (Financial Times) Eurozone Retail Sales Rise More than Expected Eurozone retail sales increased by more than expected in May, aided by stronger sales of clothes and shoes as well as fuel for vehicles, European statistics office Eurostat said. Compared to the previous month, May sales in the 19 countries sharing the euro currency increased by 0.4%, making for a 2.6% annual increase. This was above a poll of 27 economists, which had on average forecast a 0.3% monthly rise and a 2.3% yearly increase. The rise in sales was strongest in Latvia, Belgium and Estonia, while spending in Finland and Malta fell. After a strong uptick of food, drinks and tobacco sales in April, Eurozone consumers spent less on this category in May. Eurostat slightly revised up its reading for April to 2.6%, from 2.5% previously, leaving the monthly change of a 0.1% rise unchanged. (Reuters) Page 6 of 7
9. TA Securities 6-Jul-17 A Member of the TA Group UK Services Sector Growth Weakens in June The UK service sector expanded at a slower pace in June on the weakest upturn in new work since last September , survey data from IHS Markit and Chartered Institute of Procurement & Supply showed. The services Purchasing Managers' Index dropped to 53.4 in June from 53.8 in May. Although the reading remained above the 50 no-change mark for eleventh consecutive month, the survey suggested the slowest expansion in services output since February. The slowdown in business activity growth in June was linked to a softer rise in incoming new work. Sustained pressures on operating capacity led to a solid expansion of staffing levels. June data pointed to a sharp and accelerated increase in average cost burdens. Input price inflation was much slower than the peak seen in February. Consequently, the latest rise in average prices charged by service providers was the slowest since July 2016. (RTT News) Share Buy-Back: 05 July 2017 Company Bought Back Price (RM) Hi/Lo (RM) 45,000 300,000 4,900 0.23 0.55/0.54 1.09 0.23/0.225 0.55/0.535 1.09 GRANFLO SALCON UNIMECH Total Treasury Shares 6,408,800 35,981,000 5,145,310 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 7 of 7 We accept no We, our associates, directors, employees may have an interest in
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 05-Jul-17 2.03 2.25 5.84 Target Price BETA (RM) EPS (sen) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 2.37 2.28 5.51 0.95 0.62 1.26 10.3 24.1 19.7 15.8 25.3 30.7 19.6 9.4 29.7 12.8 8.9 19.0 5.8 4.0 2.2 7.8 4.0 3.4 2.44 2.70 6.47 -16.8 -16.7 -9.7 1.88 1.96 4.09 8.0 14.8 42.7 -4.7 5.1 38.3 4.80 3.70 5.70 8.00 17.50 11.00 23.60 5.80 10.00 1.28 0.96 1.34 1.38 0.66 0.96 0.79 1.32 0.69 33.6 29.4 43.9 49.6 105.2 73.4 137.2 50.7 40.3 30.5 33.6 48.4 55.2 115.5 82.9 142.4 54.5 39.0 11.6 9.0 11.6 13.1 15.5 13.2 14.8 10.0 26.0 12.8 7.9 10.5 11.8 14.1 11.6 14.3 9.3 26.8 4.1 3.0 3.4 3.1 2.5 5.2 2.8 2.4 3.2 4.1 3.0 3.5 3.5 2.5 5.2 2.9 2.4 3.2 4.49 3.00 5.70 6.87 16.30 9.68 20.66 5.59 11.14 -12.9 -11.3 -10.4 -5.2 0.0 -0.2 -1.5 -9.3 -5.9 3.60 2.08 3.90 4.11 12.70 7.50 19.26 4.53 8.20 8.6 27.9 31.0 58.3 28.3 28.8 5.6 11.9 27.8 5.1 11.3 18.6 44.3 20.7 17.8 3.1 7.6 18.4 0.42 1.33 5.47 3.53 0.66 1.18 2.00 2.11 5.90 0.46 1.62 6.00 3.50 0.78 0.58 2.26 1.49 6.26 0.79 0.63 1.04 1.10 1.00 1.27 na 1.08 0.10 5.7 14.6 28.1 15.3 4.9 8.3 12.6 11.9 42.0 5.7 13.5 34.8 20.3 5.7 9.6 12.5 12.0 45.8 7.4 9.1 19.5 23.0 13.3 14.2 15.8 17.7 14.1 7.3 9.9 15.7 17.4 11.6 12.2 15.9 17.6 12.9 0.0 2.1 2.2 2.1 3.8 0.8 2.8 1.4 4.2 0.0 2.1 2.2 2.7 3.8 0.8 2.8 1.4 4.2 0.51 1.37 5.52 3.61 0.74 1.39 2.15 2.48 6.15 -17.6 -2.9 -0.9 -2.2 -10.2 -15.1 -7.0 -14.7 -4.1 0.37 0.84 4.65 3.07 0.36 0.41 1.56 1.46 5.57 13.5 59.1 17.6 15.0 85.9 191.4 28.2 44.4 5.9 -3.4 26.7 14.4 10.3 9.1 105.2 17.6 22.7 0.3 1.98 2.00 0.49 11.0 11.5 18.0 17.2 5.1 5.1 2.19 -9.6 1.93 2.6 -1.5 15.12 18.48 17.84 21.08 0.50 0.58 74.8 93.1 81.3 20.2 101.9 19.9 18.6 18.1 4.9 4.5 5.4 5.0 15.30 19.10 -1.2 -3.2 13.72 15.56 10.2 18.8 8.6 12.8 2.20 7.35 25.30 1.22 84.08 3.45 1.95 4.89 0.92 2.23 8.62 27.41 1.39 88.66 4.10 2.46 4.41 1.23 0.49 0.35 0.32 0.48 0.36 0.47 0.66 0.43 0.57 6.7 26.4 121.1 6.1 290.1 22.3 27.5 15.7 8.1 7.9 40.6 151.0 6.3 327.7 24.7 27.0 16.6 11.6 32.7 27.9 20.9 20.1 29.0 15.5 7.1 31.1 11.4 27.9 18.1 16.8 19.4 25.7 14.0 7.2 29.4 7.9 1.8 1.4 2.8 4.9 3.3 4.3 3.1 0.9 2.7 2.2 2.0 3.0 5.0 3.3 4.9 4.1 1.0 3.8 3.00 8.89 26.90 1.33 85.00 3.66 2.04 5.00 1.07 -26.7 -17.3 -5.9 -8.1 -1.1 -5.6 -4.4 -2.2 -14.0 2.11 7.30 22.44 1.13 74.12 2.26 1.46 4.14 0.78 4.3 0.7 12.7 7.9 13.4 52.6 33.6 18.0 17.9 -14.4 0.3 7.8 6.0 7.5 35.9 12.7 12.9 15.7 43.00 52.08 1.03 198.6 187.4 21.7 22.9 4.7 4.7 55.64 -22.7 40.61 5.9 -2.7 9.38 5.66 11.51 6.54 1.35 1.29 49.3 25.7 54.7 27.7 19.0 22.0 17.1 20.4 0.5 1.4 0.6 1.6 10.00 6.38 -6.2 -11.3 7.50 4.19 25.1 35.0 18.1 25.3 2.45 0.13 3.34 0.13 0.74 1.24 19.3 0.4 23.2 0.4 12.7 34.4 10.6 34.7 5.7 0.0 6.5 0.0 3.42 0.16 -28.4 -21.9 2.43 0.05 0.8 150.0 -17.2 150.0 5.96 4.28 6.39 4.70 0.78 0.51 9.5 13.3 15.0 16.5 62.5 32.1 39.9 26.0 0.6 1.4 0.6 1.8 6.73 4.37 -11.4 -2.1 5.54 3.85 7.6 11.2 -6.1 2.4 7.20 6.50 1.98 5.76 1.68 6.80 7.60 1.80 6.05 2.20 0.56 0.16 0.34 -0.18 0.29 17.2 35.8 12.3 26.4 3.7 24.4 40.0 15.1 29.8 5.5 41.8 18.1 16.0 21.8 45.0 29.5 16.3 13.1 19.3 30.6 1.1 2.8 1.9 2.3 0.6 1.5 3.1 2.3 2.6 0.8 7.40 7.07 2.38 5.94 2.64 -2.7 -8.1 -16.8 -3.0 -36.4 4.06 5.62 1.88 4.20 1.65 77.3 15.7 5.3 37.1 1.8 49.1 -1.4 -6.2 7.7 -28.8 INDUSTRIAL SCIENTX SKPRES 8.64 1.31 9.71 1.80 0.52 0.53 54.5 8.6 66.3 10.6 15.9 15.3 13.0 12.3 2.1 3.2 2.3 4.0 8.99 1.44 -3.9 -9.0 6.01 1.15 43.8 13.9 29.0 1.6 MEDIA ASTRO MEDIA PRIMA STAR 2.60 0.93 2.34 3.45 0.60 1.40 1.06 0.65 0.64 13.2 1.7 7.1 14.5 2.8 6.5 19.6 54.2 33.0 18.0 32.7 36.1 4.8 1.5 7.7 5.0 2.4 7.7 3.01 1.52 2.67 -13.6 -39.1 -12.4 2.51 0.92 2.19 3.6 0.5 6.8 0.0 -19.6 4.5 -13.0 -30.6 -6.3 -9.8 -8.8 -21.4 -59.1 0.20 0.80 7.03 0.44 6.43 1.33 0.40 207.7 0.6 5.3 37.9 10.6 24.1 7.6 135.3 -12.0 0.7 34.8 1.9 1.9 -51.4 -16.7 1.30 26.9 -2.9 BANKS & FINANCIAL SERVICES AFG 3.91 AFFIN 2.66 AMBANK 5.11 CIMB 6.51 HLBANK 16.30 MAYBANK 9.66 PBBANK 20.34 5.07 RHBBANK BURSA 10.48 CONSTRUCTION BPURI GADANG GAMUDA IJM PESONA SENDAI SUNCON WCT LITRAK Building Materials WTHORSE CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N HUPSENG NESTLE PADINI POHUAT QL SIGN Tobacco BAT GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX OIL & GAS DNEX 0.60 0.73 1.03 3.6 4.3 16.7 13.9 1.7 1.7 0.69 MHB 0.81 0.87 1.82 -1.2 1.3 na 61.5 0.0 0.0 1.16 MISC 7.40 6.85 0.79 56.4 48.9 13.1 15.1 4.1 4.1 7.90 PANTECH 0.60 0.69 1.29 4.1 4.9 14.5 12.2 3.0 3.2 0.67 PCHEM 7.11 7.74 1.07 39.2 40.5 18.1 17.6 3.0 3.1 7.80 SENERGY 1.65 1.71 2.49 6.6 4.0 25.0 41.6 0.6 0.6 2.10 UMWOG 0.43 0.80 2.05 -11.7 -3.5 na na 0.0 0.0 1.04 Note: UMWOG proposed rights issue of shares. Ex-Target price RM0.43. For more details please refer to 08.05.17 report. UZMA 1.65 1.55 1.49 12.0 12.6 13.8 13.1 0.0 0.0 1.98
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 1.69 3.00 4.46 24.84 9.51 6.53 Target Price BETA (RM) 1.55 3.88 4.15 26.19 10.02 7.52 1.78 0.47 1.07 0.86 1.23 0.43 EPS (sen) PER (X) FY17 FY18 FY17 FY18 4.2 12.3 18.7 111.8 34.0 37.6 8.5 15.7 21.0 119.1 37.5 34.5 40.1 24.4 23.8 22.2 28.0 17.4 19.9 19.1 21.2 20.9 25.3 19.0 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 3.0 2.3 2.2 2.2 2.6 3.5 3.0 2.7 2.7 2.4 3.3 2.6 2.52 3.70 4.81 25.50 9.70 6.58 -32.9 -18.9 -7.3 -2.6 -2.0 -0.8 1.42 3.00 4.21 22.92 7.41 5.53 PROPERTY GLOMAC 0.65 0.70 0.59 1.6 6.3 40.8 10.3 4.6 4.6 0.83 -21.2 0.65 HUAYANG 1.04 1.07 0.66 17.3 17.4 6.0 6.0 3.8 3.4 1.43 -27.4 1.03 IBRACO 0.81 0.92 0.37 4.9 10.2 16.5 7.9 4.3 5.0 1.05 -23.3 0.79 IOIPG 2.20 2.25 0.87 17.4 17.4 12.6 12.6 3.2 3.4 2.46 -10.6 1.85 MAHSING 1.60 1.76 0.73 14.3 13.5 11.2 11.8 4.1 4.1 1.70 -5.9 1.34 SNTORIA 0.87 0.98 0.28 6.2 10.3 14.0 8.4 1.2 1.2 1.00 -13.5 0.69 SPB 4.92 5.98 0.59 25.6 22.8 13.3 15.0 2.4 2.4 5.19 -5.2 4.32 SPSETIA 3.41 4.10 0.67 27.3 29.4 14.4 13.4 4.1 4.1 4.50 -24.2 2.80 SUNWAY 3.93 3.95 0.47 18.3 18.6 13.4 13.1 3.1 3.1 4.05 -3.0 2.84 Note: SUNWAY proposed bonus issue of shares and warrants. Ex-Target price RM1.69. For more details please refer to 15.06.17 report. REIT SUNREIT 1.75 1.86 0.51 8.9 10.1 19.7 17.3 5.1 5.8 1.84 -4.9 1.63 CMMT 1.57 1.72 0.59 8.1 8.6 19.4 18.2 5.4 5.7 1.72 -8.7 1.45 % Chg YTD 19.0 0.0 5.9 8.4 28.3 18.1 9.0 -11.8 1.4 3.5 17.4 8.8 0.8 1.0 2.5 19.1 19.4 25.4 13.8 21.8 38.3 -6.5 -8.0 -19.5 12.8 11.9 8.1 11.3 8.9 31.0 7.4 8.3 1.7 2.6 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.05 24.10 18.60 14.12 1.45 1.13 21.47 19.60 17.37 1.90 0.76 0.76 0.77 1.01 0.53 7.1 98.4 88.2 131.9 8.2 6.4 102.3 101.3 130.8 10.7 14.8 24.5 21.1 10.7 17.6 16.4 23.6 18.4 10.8 13.6 6.7 3.0 3.3 3.1 6.9 6.7 3.2 3.8 3.2 6.9 1.80 25.70 22.50 14.90 1.64 -41.7 -6.2 -17.3 -5.2 -11.6 1.04 22.92 18.10 13.00 1.39 1.0 5.1 2.8 8.6 4.3 -23.4 1.3 -12.7 1.6 -2.7 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 4.76 5.00 5.50 6.62 5.25 4.95 5.70 7.50 1.30 0.92 0.71 0.66 14.6 20.8 24.8 21.4 16.0 21.1 25.0 22.3 32.6 24.0 22.1 30.9 29.8 23.7 22.0 29.7 1.5 4.2 3.6 2.9 1.7 4.2 3.6 3.0 5.99 5.19 6.60 6.90 -20.5 -3.7 -16.7 -4.1 4.11 4.64 5.48 5.81 15.8 7.8 0.4 13.9 0.8 3.5 -8.0 11.3 TECHNOLOGY Semiconductor & Electronics IRIS 0.18 INARI 2.17 MPI 13.40 UNISEM 3.65 0.28 2.30 15.60 3.95 1.32 0.80 0.51 0.82 -2.6 10.3 94.2 26.9 -0.3 na 12.4 21.1 112.9 14.2 27.1 13.5 na 17.5 11.9 13.5 0.0 3.7 2.0 3.3 0.0 2.2 2.0 3.3 0.24 2.23 13.50 3.70 -27.1 -2.7 -0.7 -1.4 0.10 1.44 7.20 2.27 75.0 51.0 86.1 60.8 59.1 30.7 80.8 54.7 3.18 8.60 3.34 8.10 1.09 1.44 37.6 17.2 37.1 17.5 8.5 49.9 8.6 49.2 1.3 1.2 1.6 1.2 3.59 9.45 -11.4 -9.0 2.16 5.76 47.2 49.3 38.9 41.9 1.76 3.68 2.05 4.05 0.75 0.67 14.3 17.1 22.7 15.1 12.3 21.5 7.7 24.3 2.4 3.5 4.0 3.1 1.87 4.59 -5.9 -19.8 1.44 3.61 22.2 1.9 10.7 -14.4 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 21.10 OCBC 10.83 UOB 23.35 PLANTATIONS WILMAR IFAR 3.35 0.48 Target Price Beta (S$) EPS (cent) PER (X) FY17 FY18 FY17 FY18 Div Yield (%) 52week 52week FY17 FY18 High Price % Chg Low Price % Chg % Chg YTD 23.30 12.00 25.40 1.23 1.14 1.08 173.8 87.7 195.6 190.2 12.1 92.4 12.3 209.3 11.9 11.1 11.7 11.2 2.8 5.7 3.0 2.8 6.7 3.0 21.2 11.0 24.0 -0.4 -1.1 -2.8 14.72 8.84 17.51 43.3 31.0 33.4 21.7 21.4 14.5 3.72 0.53 0.91 1.12 28.9 4.9 31.1 5.2 10.8 9.2 2.4 2.5 2.7 2.7 4.0 0.6 -16.3 -19.3 2.96 0.44 13.2 9.1 -6.7 -8.6 11.6 9.9 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
12. COMPANY UPDATE TA Securities Thursday , July 06, 2017 FBM KLCI: 1,768.16 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 Lotte Chemical Titan Holding Bhd TP: RM7.41 (+14%) Hiccup Before Debut IPO Price: RM6.50 BUY THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Kylie Chan Sze Zan Tel: +603-2167 9601 kyliechan@ta.com.my What Happened Lotte Chemical Titan Holding Bhd (LCT) made the following announcements in conjunction with its listing on the Main Market of Bursa Malaysia:1 2 Final retail price (FRP) of RM6.50 per share (previous: RM8.00). For investors that wish to exit post-announcement, LCT will make an offer to buy back the IPO shares at the FRP. Meanwhile, for retail investors, the difference between the FRP and original paid price of RM8.00 will be refunded. Reduction in IPO Offering Size (Figure 1) to 580mn (previous: 740.48mn), which translates to a reduction of 21.7%. This is for the institutional offering, which will now be reduced to 524.2mn shares (previous: 684.7mn). Figure 1: Revised IPO Statistics Institutional % of No. of Units % of IPO Enlarged (mn) shares Share Base 524.2 23% 90% A www.taonline.com.my Share Information Listing Enlarged Share Capital (mn) Market Cap (RM mn) -indicative Issue Price (RM) Oversubscription rate Estimated free float (%) Tentative Listing Date Timetable Event Allotment of Shares Listing Buy Back Period Commences Buy Back Offer Period Ends Payment of Acceptance of Buy Back Offer MAIN Market 2,308 15,002 6.50 NA 25 11 Jul 2017 7 Jul 2017 11 Jul 2017 12 Jul 2017 18 Jul 2017 By 1 Aug 2017 Forecast Revision (%) FY17 Forecast Revision (%) FY18 (1.8) 0.0 1,239.5 1,649.9 - MITI 283.9 12% 49% Core Net Profit (RM mn) - Local & Foreign Institutions 240.4 10% 41% Consensus n.m. n.m. TA/Consensus (%) n.m. n.m. Retail 55.8 2% 10% - Directors & Eligible Employees 2.0 0.1% 0% - Persons whom contributed to Group's success - Public (Bumiputra) 4.4 0.2% 1% 24.7 1% 4% - Public (Non-Bumiputra) 24.7 1% 4% 580.0 25% Total Public Issue Previous Rating Financial Indicators Net Debt/Equity (x) ROA (%) ROE (%) NTA/Share (RM) P/NTA (x) Following the reduction in IPO offering size, the quantum of IPO proceeds to fund LCT’s IPF (Figure 2) project, and listing expenses have reduced in tandem. Nevertheless, the allocation of IPO proceeds for PP3 and TE3 projects remain intact. The gross IPO proceeds now total RM3.7bn (previous: RM5.9bn). Figure 2: Revised Utilisation of IPO Proceeds Utilization of IPO Proceeds Amount (RM mn) % of Total Expansion of Business 16.4 - PP3 Project - New Propylene Plant 620 - TE3 Project - Extention to existing Naphtha Cracker 220 5.8 2,814.3 74.6 - Integrated Petrochemical Facility (IPF) in Indonesia Listing Expenses Total Gross Proceeds 115.7 3.1 3,770.0 100.0 Page 1 of 3 Buy (Maintained) FY17 Net Cash 10.2 11.3 5.4 1.2 FY18 Net Cash 11.0 12.5 5.7 1.1
13. TA Securities 6-Jul-17 A Member of the TA Group There was also a list of errata to the prospectus dated 16 June 2017 in relation to :- 1) sales volume of polyethylene (PE), 2) aggregate production volume, nameplate capacity, and average plant utilisation rate, 3) maintenance costs as a percentage of total plant fixed manufacturing costs, 4) US Shale Gas Project: total investment and amount invested, 5) production volumes, and 6) suppliers’ contribution to cost of goods sold. In addition, there was errata on propylene volume that LCT purchased externally as feedstock for production of polypropylene (PP) products. According to the original prospectus, in FY14-16, LCT purchased propylene totalling an aggregate of 30 KTA, to supplement its PP production. However, the quantum is now amended to 41 KTA, which is 37% higher than the original stated amount. Impact Following the prospectus errata above, we tweak our earnings forecasts to account for higher volume of propylene feedstock purchase. As a result, our FY17 net profit is reduced by 1.8%. Additionally, we also incorporate changes arising from the mentioned errata and announcement. e.g. Change in enlarged share capital, reduction in listing expenses and IPO cash proceeds, adjusted debt levels, etc. Valuation As a result of the changes above, our TP for LCT is now reduced to RM7.41 (previous: RM9.10) based on unchanged 7.0x FY18 EV/EBITDA. Our TP implies a FY18 P/E multiple of 10.4x, which translates to 19%-22% discount versus regional peers. It also implies a steep 34% discount versus Petronas Chemicals FY18 P/E of 15.7x. We believe the discount is more than compensates for LCT’s lower EBITDA margin and market capitalisation. Furthermore, PChem’s margin advantage over LCT will narrow following the launch of PChem’s naphtha cracker in 2020, and LCT’s shale gas cracker in 2019. As a result of the downwards revision on FRP, and corresponding newsflow, we do not discount the possibility of negative sentiment weighing on LCT’s stock price. Nevertheless, we believe the company’s solid fundamentals and long term growth story remain intact. As such, LCT’s current valuation at the FRP appears even more attractive at this juncture. We maintain our Buy recommendation on the stock. We still favour LCT for its multi-year earnings growth (2015-18 3-year CAGR: 56%) from capacity expansion. We are also optimistic on the group’s diversification into US shale gas feedstock and new western markets. Beyond 2019, LCT’s growth story will continue with its new integrated facility at the high growth Indonesian market. Furthermore, on the back of subdued oil price, naphtha crackers like LCT benefit from super normal margins and resilient demand for petrochemicals. Page 2 of 3
14. TA Securities 6-Jul-17 A Member of the TA Group Earnings Summary Income Statement FYE 31 Dec (RMmn) Revenue EBITDA Depreciation Net finance cost Share of Associates Exceptionals Pretax Profit Taxation MI Net Profit 2015 2016 2017E 2018F 2019F 8,147.8 8,136.6 8,808.4 10,810.5 11,706.0 1,563.4 2,196.8 2,076.2 2,712.9 2,981.2 (421.0) (398.4) (441.4) (620.8) (767.3) (19.0) (7.2) (0.8) (24.4) (28.1) (4.6) (5.3) (5.4) (5.4) (5.5) (68.7) (75.7) (153.0) 0.0 0.0 1,050.2 1,710.2 1,475.7 2,062.4 2,180.3 (436.1) (394.1) (236.1) (412.5) (436.1) (0.9) (0.7) (0.7) (0.9) (0.9) 613.2 1,315.4 1,238.9 1,649.0 1,743.3 Core Net Profit Per Share Data Core EPS DPS Book Value Net Tang Asset Ratios FYE 31 Dec Valuations Core PER Dividend yield EV/EBITDA P/BV P/NTA FCFE Yield (sen) (sen) (RM) (RM) 681.9 1,391.1 1,391.9 1,649.0 1,743.3 29.5 0.0 2.7 2.7 60.3 0.0 3.5 3.5 60.3 26.0 5.4 5.4 71.5 35.0 5.7 5.7 75.5 37.0 6.1 6.1 2015 2016 2017E (x) (%) (x) (x) (x) (%) 22.0 0.0 8.7 2.4 2.4 4.5 10.8 0.0 6.4 1.9 1.9 3.1 10.8 4.0 5.7 1.2 1.2 19.0 9.1 5.4 4.8 1.1 1.1 0.5 8.6 5.7 4.6 1.1 1.1 1.1 Profitability ratios EBITDA margin EBIT margin PBT margin Core Net margin ROE ROA (%) (%) (%) (%) (%) (%) 19.2 14.0 12.9 8.4 10.9 9.3 27.0 22.1 21.0 17.1 17.5 14.9 23.6 18.6 16.8 15.8 11.3 10.2 25.1 19.4 19.1 15.3 12.5 11.0 25.5 18.9 18.6 14.9 12.4 11.0 Liquidity ratios Current ratio Quick ratio Interest coverage (x) (x) (x) 5.3 3.5 49.9 5.0 3.3 119.3 8.5 6.5 271.2 6.8 5.0 52.3 5.9 4.1 55.3 Leverage ratios Total Debt/Equity Total Debt/ Assets Net Gearing (x) 0.0 0.0 0.0 0.0 0.0 (x) 0.0 0.0 0.0 0.0 0.0 (x) Net Cash Net Cash Net Cash Net Cash Net Cash Growth ratios Revenue EBITDA PBT Core Net Profit Core EPS Key Assumptions Plant Utilization PE-Naphtha PP-Naphtha (%) (%) (%) (%) (%) (5.4) >100 >100 >-100 >-100 (0.1) 40.5 62.8 104.0 104.0 8.3 (5.5) (13.7) 0.1 0.1 (%) (USD/mt) (USD/mt) 91 686 615 91 719 618 89 805 685 2018F 22.7 30.7 39.8 18.5 18.5 95 760 711 2019F 8.3 9.9 5.7 5.7 5.7 95 742 669 Balance Sheet FYE 31 Dec (RMmn) PPE Associates & JCEs Others Non-Current Assets 2015 2016 3,596.4 4,378.8 12.9 1,552.1 158.1 47.8 3,767.3 5,978.7 2017E 2018F 2019F 6,730.8 8,761.0 10,313.4 1,546.7 1,541.3 1,535.9 47.8 47.8 47.8 8,325.3 10,350.1 11,897.1 Inventories Trade and other Rcvb Cash and Deposits Others Current Assets 1,187.3 853.9 1,511.0 17.5 3,569.7 1,147.1 1,143.3 1,040.3 31.0 3,361.7 1,243.8 975.9 3,124.2 31.0 5,375.0 Total Assets 7,337.0 9,340.5 13,700.3 15,023.4 15,893.6 1,237.0 1,028.9 2,376.4 31.0 4,673.3 1,231.0 1,071.1 1,663.4 31.0 3,996.5 Borrowings Deferred Tax Others Non-current Liabilities 72.2 69.5 284.9 426.6 0.0 364.4 340.9 705.3 0.0 364.4 340.9 705.3 450.0 364.4 340.9 1,155.3 450.0 364.4 340.9 1,155.3 Borrowings Trade & other Payables Others Current Liabilities 71.3 605.5 0.9 677.7 75.4 590.2 0.2 665.7 0.0 635.2 0.2 635.4 50.0 633.0 0.2 683.2 50.0 630.7 0.2 680.9 Total Liabilities 1,104.3 1,371.1 1,340.8 1,838.5 1,836.2 Share capital Reserves Retained Earnings Minority Interests Equity 1,727.8 1,833.7 2,660.4 10.8 6,232.6 1,727.8 5,816.8 5,816.8 5,816.8 2,237.9 1,918.8 1,918.8 1,918.8 3,981.7 4,601.2 5,425.7 6,297.3 22.0 22.7 23.5 24.5 7,969.4 12,359.5 13,184.9 14,057.5 Total Equity + Liabilities 7,337.0 9,340.5 13,700.3 15,023.4 15,893.6 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 1,050.2 1,710.2 421.0 398.4 19.0 7.2 4.6 5.3 3.5 (264.5) (436.1) (394.1) 741.5 506.4 1,803.7 1,968.8 1,475.7 441.4 0.8 5.4 115.7 (236.1) 0.0 1,802.8 2,062.4 620.8 24.4 5.4 (48.4) (412.5) 0.0 2,252.0 2,180.3 767.3 28.1 5.5 (38.5) (436.1) 0.0 2,506.6 Capex Interest Income Others CF from Investing (157.6) (1,001.0) (2,793.3) (2,651.0) (2,319.8) 3.8 7.9 5.2 15.6 11.9 11.8 (1,388.8) 0.0 0.0 0.0 (142.0) (2,382.0) (2,788.1) (2,635.4) (2,307.9) Dividends Net Change in debt Interest Paid Others CF from Financing (101.2) (275.3) (22.9) (69.1) (468.5) Net Cash Flow Beginning Cash Exchange Rates Ending Cash 1,193.3 184.0 133.7 1,511.0 0.0 (68.2) (15.1) 13.1 (70.2) (483.3) 1,511.0 12.7 1,040.3 (619.4) (75.4) (6.0) 3,770.0 3,069.2 (824.5) 500.0 (40.0) 0.0 (364.5) (871.6) 0.0 (40.0) 0.0 (911.6) 2,083.9 1,040.3 3,124.2 (747.9) 3,124.2 2,376.4 (712.9) 2,376.4 1,663.4 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD(14948-M) (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research Page 3 of 3
15. Thursday , 06 July, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED LOCAL TECHNICAL REPORTS’ Local Technical Reports 1. Daily Technical Stock Picks 2. Daily Stock Screen Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA SECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research
16. T e c h n i c a l TA Securities V i e w Thursday , July 06, 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: 1,768.16 (+6.08, +0.35%) THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Name FBMKLCI AFFIN AFG AMBANK AXIATA CIMB DIGI GAMUDA GENTING GENM IHH IOICORP MALAKOFF MAXIS MAYBANK MBSB RHBBANK SIME TENAGA TM WPRTS AIRASIA AIRASIA X ARMADA BINAPURI CMSB DIALOG ECO WORLD EKOVEST GADANG HSL ISKANDAR KIMLUN KKBE MUDAJAYA MRCB NAIM SAPURA ENERGY SUNCON UEMS WASEONG WCT Close 5/7/2017 1768.16 2.66 3.91 5.11 4.76 6.51 5.00 5.47 9.38 5.66 5.96 4.46 1.05 5.50 9.66 1.32 5.07 9.51 14.12 6.62 3.68 3.18 0.40 0.77 0.42 4.05 1.92 1.64 1.18 1.33 1.63 1.55 2.27 1.27 1.39 1.43 1.27 1.65 2.00 1.22 0.93 2.11 Change 6.08 -0.01 0.01 0.11 -0.01 0.00 0.00 0.00 0.04 0.04 0.11 0.00 0.01 0.01 0.01 0.00 0.01 0.00 0.02 -0.02 0.03 -0.01 -0.01 0.00 0.00 0.00 0.00 0.00 -0.01 -0.01 -0.01 -0.03 0.01 -0.01 0.01 0.01 -0.01 0.03 0.00 0.02 -0.02 0.05 Tel: +603-2167-9607 High Low 1,768.16 1,761.17 2.67 3.92 5.11 4.79 6.52 5.02 5.48 9.41 5.67 5.96 4.48 1.05 5.57 9.67 1.32 5.08 9.52 14.14 6.66 3.68 3.21 0.41 0.77 0.43 4.06 1.93 1.65 1.19 1.35 1.63 1.59 2.28 1.28 1.39 1.43 1.28 1.66 2.01 1.22 0.95 2.11 2.66 3.87 4.99 4.73 6.49 4.98 5.46 9.32 5.62 5.85 4.45 1.04 5.49 9.64 1.30 5.06 9.50 14.08 6.61 3.63 3.18 0.40 0.76 0.42 4.02 1.91 1.63 1.17 1.32 1.62 1.55 2.27 1.27 1.37 1.42 1.27 1.60 1.99 1.19 0.93 2.05 Bollinger Bands Lower Mid Upper 1,761.04 1,780.23 1,799.43 2.63 3.79 4.84 4.77 6.50 4.95 5.31 9.31 5.46 5.81 4.43 1.01 5.27 9.55 1.30 5.02 9.50 13.93 6.50 3.58 3.09 0.40 0.71 0.40 4.02 1.90 1.55 1.17 1.26 1.61 1.56 2.23 1.25 1.30 1.32 1.22 1.48 1.96 1.17 0.90 2.01 2.68 3.95 5.00 4.94 6.65 4.99 5.42 9.67 5.66 5.97 4.50 1.10 5.85 9.61 1.33 5.10 9.58 14.22 6.59 3.74 3.25 0.41 0.75 0.41 4.08 1.93 1.63 1.20 1.30 1.63 1.61 2.26 1.27 1.45 1.39 1.28 1.73 2.02 1.24 0.95 2.09 2.73 4.12 5.16 5.11 6.80 5.03 5.52 10.03 5.86 6.12 4.57 1.19 6.42 9.67 1.36 5.19 9.66 14.51 6.68 3.90 3.41 0.43 0.80 0.43 4.13 1.96 1.70 1.22 1.34 1.65 1.66 2.29 1.30 1.60 1.46 1.34 1.98 2.07 1.31 0.99 2.17 stsoo@ta.com.my www.taonline.com.my RSI Moving Averages 14d 10d 30d 50d 45.14 1,771.83 1,776.67 1,773.02 DMI DI + DI - ADX 17.91 21.10 22.75 Diff (3.19) 38.90 41.87 53.26 29.28 51.11 49.22 60.56 37.94 49.26 51.27 43.87 25.28 14.45 68.28 48.55 38.85 48.97 50.63 56.33 43.13 46.49 37.95 52.96 52.53 38.94 49.85 55.35 40.66 60.48 46.32 32.20 51.51 46.07 47.13 51.23 40.98 41.54 46.21 46.12 48.68 51.50 17.95 13.78 23.45 10.64 25.27 11.20 23.90 7.62 24.10 15.40 19.88 5.37 9.69 24.39 18.97 13.35 20.35 21.53 21.41 18.19 19.08 12.15 23.40 30.62 7.52 14.97 25.58 17.54 22.59 21.56 19.22 28.49 33.29 24.86 22.86 20.73 18.21 14.71 13.03 29.00 20.82 (1.88) (9.79) 3.52 (18.66) 4.60 (2.71) 3.97 (21.48) 3.32 (7.82) 2.91 (25.59) (35.10) 9.31 1.53 (9.35) 3.83 4.92 10.26 (0.71) (4.07) (10.05) 8.71 (24.05) (1.41) (1.41) 9.19 (1.58) 12.75 2.90 (5.40) 0.90 3.93 2.99 0.02 (5.28) (9.53) (6.47) (12.25) 8.74 2.23 2.67 3.90 5.00 4.88 6.61 5.00 5.46 9.53 5.61 5.91 4.48 1.06 5.57 9.63 1.34 5.09 9.56 14.16 6.62 3.68 3.19 0.41 0.75 0.41 4.06 1.93 1.64 1.20 1.31 1.63 1.59 2.26 1.27 1.38 1.38 1.27 1.61 2.01 1.21 0.94 2.06 2.72 4.04 5.08 4.98 6.53 4.99 5.40 9.74 5.74 5.91 4.51 1.13 6.03 9.54 1.32 5.19 9.50 14.08 6.55 3.77 3.21 0.42 0.76 0.42 4.09 1.93 1.61 1.21 1.29 1.64 1.64 2.26 1.28 1.48 1.41 1.30 1.78 2.04 1.25 0.93 2.12 2.80 4.13 5.21 5.07 6.24 5.03 5.36 9.79 5.77 5.99 4.54 1.17 6.21 9.47 1.31 5.28 9.43 14.00 6.52 3.84 3.28 0.44 0.77 0.43 4.25 1.91 1.57 1.25 1.29 1.66 1.99 2.28 1.31 1.37 1.49 1.40 1.85 2.03 1.26 0.92 2.15 19.83 23.57 19.93 29.30 20.67 13.91 19.94 29.10 20.78 23.21 16.97 30.96 44.79 15.07 17.44 22.70 16.51 16.62 11.15 18.90 23.16 22.20 26.54 21.91 31.56 16.38 16.39 19.12 9.84 18.66 24.62 27.59 29.36 21.87 22.84 26.02 27.74 21.17 25.28 20.26 18.59 13.10 32.10 11.93 29.03 38.88 23.49 12.88 33.68 12.80 19.55 14.61 62.33 59.20 19.15 22.93 29.49 28.70 36.16 19.16 7.38 16.03 21.85 14.56 16.59 42.73 15.91 42.96 18.50 21.37 12.80 10.54 13.66 11.08 22.28 20.86 27.26 26.45 18.70 25.27 29.26 13.49 Line (1.74) -0.03 -0.07 -0.05 -0.08 0.08 0.00 0.04 -0.11 -0.04 -0.03 -0.02 0.02 -0.22 0.06 0.01 -0.06 0.03 0.04 0.04 -0.05 -0.01 -0.01 0.00 0.00 -0.04 0.01 0.02 -0.01 0.01 -0.01 -0.09 0.00 -0.01 -0.01 -0.03 -0.04 -0.07 0.00 -0.02 0.01 -0.02 MACD Signal Diff 1.08 (2.815) -0.04 -0.08 -0.06 -0.06 0.13 -0.01 0.03 -0.07 -0.04 -0.02 -0.02 0.02 -0.20 0.07 0.01 -0.06 0.05 0.07 0.04 -0.05 -0.01 -0.01 0.00 0.00 -0.05 0.01 0.02 -0.02 0.01 -0.01 -0.11 0.00 -0.01 0.01 -0.04 -0.04 -0.07 0.00 -0.01 0.01 -0.02 0.005 0.002 0.013 (0.019) (0.052) 0.006 0.004 (0.040) 0.001 (0.007) (0.002) (0.001) (0.023) (0.007) (0.004) 0.004 (0.021) (0.033) (0.002) (0.001) (0.003) 0.000 0.003 0.001 0.007 (0.004) (0.001) 0.003 0.005 0.002 0.022 0.001 0.003 (0.016) 0.013 0.008 (0.004) (0.002) (0.002) (0.003) 0.001 DMI MACD Recent Signal SELL SELL DMI MACD Signal Change - SELL SELL BUY SELL BUY SELL BUY SELL BUY SELL BUY SELL SELL BUY BUY SELL BUY BUY BUY SELL SELL SELL BUY SELL SELL SELL BUY SELL BUY BUY SELL BUY BUY BUY BUY SELL SELL SELL SELL BUY BUY SELL BUY SELL SELL SELL BUY BUY BUY BUY BUY SELL SELL BUY BUY SELL BUY SELL SELL SELL SELL SELL SELL BUY SELL SELL SELL SELL SELL BUY BUY BUY BUY SELL SELL BUY BUY BUY BUY BUY BUY SELL BUY BUY SELL SELL SELL SELL BUY BUY BUY SELL SELL BUY The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 4
17. Technical Comments : SELL Ekovest & BUY WCT Holdings The daily stochastics sell signal on Ekovest point to increased downside risk towards the 123.6%FR (RM1.09), with better chart support from the 200-day ma (RM1.05), while immediate overhead resistance is from the 150%FR (RM1.25). On the other hand, bullish momentum on WCT Holdings implies good upside potential towards the 138.2%FP (RM2.18), with next hurdle at the 150%FP (RM2.25), while key support from the 100-day ma (RM2.02) matches the lower Bollinger band. EKOVEST Upper Middle RM1.18 (-0.01) BOLLINGER BANDS RM RM 1.22 1.20 10-day 30-day RM 1.17 50-day Lower DMI Recent Signal SELL Recent Signal SELL Signal Change WCT HOLDINGS Recent Signal Signal Change BOLLINGER BANDS RM RM RM DMI RM 1.25 DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 1.20 RM 1.21 BUY RM2.11 (+0.05) 2.17 2.09 2.01 BUY BUY SIMPLE MOVING AVERAGES RM 2.06 RM 2.12 RM 2.15 DAILY MACD Recent Signal BUY Signal Change BUY 10-day 30-day 50-day Page 2 of 4
18. T e c h n i c a l TA Securities V i e w Thursday , July 06, 2017 FBMKLCI: 1,768.16 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 05.07.2017 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my Report Description: The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas .The following list is derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and 30 ‘potential’ breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger band. [MIDDLE BOLLINGER RANGEBOUND] List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/SELL) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Name Price BORNEO OIL BHD DAGANG NEXCHANGE TALAM TRANSFORM PWORTH NWP HLDGS BHD PANTECH GROUP IRIS CORP BHD JOHAN HLDGS BHD CAREPLUS GROUP KARYON INDUS BHD DESTINI BHD BIO OSMO BHD GENTING MALAYSIA BUMI ARMADA BHD KEY ALLIANCE GRO SERSOL BHD KUB MALAYSIA BHD MMAG HOLDINGS BH OCEANCASH PACIFI DIGISTAR CORP LEWEKO RESOURCES VERSATILE CREATI PRESS METAL BHD TRC SYNERGY BHD SUMATEC RESOURCE MY EG SERVICES LUSTER INDUSTRIE LNG RESOURCES FAJAR BARU DIGI.COM BHD 0.12 0.60 0.05 0.27 0.21 0.60 0.18 0.25 0.41 0.27 0.73 0.10 5.66 0.77 0.05 0.19 0.52 0.06 0.80 0.18 0.34 1.62 2.68 0.74 0.06 2.17 0.13 0.20 0.98 5.00 RSI Bollinger Band Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.10 0.57 0.04 0.23 0.19 0.57 0.14 0.22 0.38 0.23 0.69 0.08 5.46 0.71 0.04 0.16 0.48 0.05 0.74 0.16 0.31 1.52 2.56 0.68 0.05 2.12 0.12 0.17 0.94 4.95 0.11 0.59 0.04 0.25 0.20 0.60 0.16 0.24 0.41 0.25 0.71 0.09 5.66 0.75 0.04 0.17 0.51 0.05 0.79 0.17 0.33 1.60 2.67 0.72 0.06 2.16 0.12 0.18 0.97 4.99 0.12 0.61 0.05 0.27 0.21 0.62 0.19 0.26 0.44 0.28 0.72 0.11 5.86 0.80 0.05 0.19 0.55 0.06 0.84 0.18 0.36 1.68 2.78 0.76 0.06 2.20 0.13 0.20 1.00 5.03 49.03 55.03 53.25 56.98 57.38 51.38 55.70 51.80 59.28 55.78 57.96 51.43 49.26 52.96 51.55 57.31 47.01 53.43 54.54 49.85 53.85 58.56 48.26 58.36 53.39 51.51 49.15 56.38 58.81 49.22 0.11 0.59 0.04 0.25 0.21 0.59 0.17 0.24 0.41 0.27 0.71 0.09 5.61 0.75 0.04 0.17 0.50 0.05 0.79 0.17 0.33 1.62 2.68 0.73 0.06 2.15 0.12 0.18 0.98 5.00 0.12 0.59 0.04 0.25 0.20 0.60 0.17 0.24 0.38 0.25 0.71 0.09 5.74 0.76 0.04 0.18 0.53 0.05 0.78 0.17 0.33 1.57 2.71 0.70 0.06 2.17 0.13 0.18 0.96 4.99 0.12 0.59 0.04 0.25 0.21 0.61 0.18 0.27 0.35 0.26 0.72 0.10 5.77 0.77 0.05 0.19 0.55 0.05 0.77 0.19 0.31 1.47 2.73 0.67 0.06 2.18 0.13 0.19 0.91 5.03 Vol 20,045,500 19,092,900 14,857,600 11,198,500 8,460,800 7,542,100 7,054,400 6,211,700 6,203,600 4,993,600 4,720,100 4,696,100 4,492,700 4,026,400 4,017,500 3,656,300 3,550,800 3,488,100 3,396,900 3,196,500 3,189,600 2,878,300 2,732,600 2,715,300 2,508,200 2,472,100 2,422,800 2,395,900 2,356,900 2,280,600 20-day avg vol 24,657,090 24,280,630 5,431,395 19,333,190 2,066,990 1,113,600 13,276,820 2,591,450 9,533,785 1,767,885 1,124,670 8,584,455 7,678,445 8,492,710 8,274,815 728,185 2,920,360 3,176,575 2,253,490 1,106,420 1,930,540 2,091,460 1,924,895 4,490,215 6,656,875 7,920,530 6,170,380 729,080 3,914,765 3,340,570 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
19. 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 WARISAN TC HLDGS FORMOSA PROSONIC TSR CAPITAL BHD MPAY PRIVASIA TECHNOL CENTRAL IND BHD GOLDEN PHAROS EUPE CORP BHD THREE-A RESOURCE DAMANSARA REALTY CAELY HOLDINGS B DESTINI BHD AHB HOLDINGS BHD MASTER-PACK GROU SIG GASES BHD HONG LEONG INDS MERGE ENERGY BHD REV ASIA BHD MEXTER TECHNOLOG 2.15 0.99 0.79 0.25 0.19 1.12 0.33 1.07 1.40 0.62 0.50 0.73 0.31 0.73 1.00 10.40 0.55 0.78 0.27 0.25 RAYA INTERNATION Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 1.91 0.86 0.71 0.19 0.15 0.92 0.29 0.97 1.25 0.49 0.47 0.69 0.19 0.61 0.70 9.72 0.23 0.68 0.23 0.22 2.00 0.91 0.75 0.22 0.16 1.00 0.31 1.01 1.30 0.54 0.48 0.71 0.24 0.67 0.85 10.00 0.37 0.72 0.24 0.23 2.10 0.96 0.78 0.25 0.18 1.08 0.32 1.04 1.36 0.59 0.49 0.72 0.28 0.72 0.99 10.29 0.52 0.76 0.26 0.25 67.30 73.77 61.92 64.61 66.83 71.72 56.55 65.12 72.63 63.70 58.96 57.96 78.10 63.95 69.61 74.37 84.43 58.77 80.80 66.36 2.00 0.92 0.74 0.22 0.16 1.02 0.31 1.02 1.31 0.53 0.48 0.71 0.25 0.68 0.89 10.09 0.42 0.73 0.24 0.24 2.00 0.91 0.75 0.22 0.17 1.00 0.31 1.01 1.30 0.57 0.48 0.71 0.24 0.66 0.82 10.00 0.35 0.71 0.24 0.23 1.95 0.89 0.74 0.23 0.18 1.00 0.33 1.02 1.31 0.63 0.48 0.72 0.22 0.66 0.76 9.99 0.34 0.76 0.24 0.23 Vol 3,000 4,976,300 972,700 39,551,900 8,657,100 15,000 1,054,400 679,200 3,289,700 1,227,400 297,100 4,720,100 10,020,700 2,138,200 12,126,100 189,100 3,235,000 1,603,000 1,474,000 2,202,700 20-day avg vol 345 637,525 135,985 5,629,385 1,398,555 2,560 184,645 120,935 605,755 246,345 68,910 1,124,670 2,677,740 576,745 3,329,160 52,195 934,285 532,210 492,915 740,210 *Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off. [LOWER BOLLINGER BREAKDOWN] Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide) No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Stock Name Price TECK GUAN PERDAN PROLEXUS BHD NAKAMICHI CORP CONCRETE ENGINEE ENCORP BHD CARING PHARMACY PJBUMI BHD SHANGRI-LA HOTEL ALAM MARITIM RES AXIATA GROUP BER SARAWAK PLANT TEO SENG CAPITAL MEGA SUN CITY HO PARKSON HOLDINGS TEXCHEM RESOURCE ANALABS RES BHD AMWAY MALAYSIA H GUNUNG CAPITAL B TOYO INK GRP BHD FREIGHT MANAGEME 1.76 1.36 0.11 1.52 0.75 1.71 0.25 4.97 0.16 4.76 1.56 0.95 0.32 0.55 1.39 2.20 7.35 0.46 0.70 1.31 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 1.79 1.39 0.13 1.53 0.76 1.72 0.26 4.98 0.17 4.77 1.57 0.95 0.33 0.56 1.40 2.21 7.36 0.46 0.70 1.31 1.99 1.52 0.18 1.60 0.79 1.79 0.29 5.08 0.20 4.94 1.61 0.97 0.37 0.58 1.42 2.25 7.49 0.49 0.76 1.35 2.18 1.66 0.22 1.67 0.81 1.87 0.32 5.17 0.23 5.11 1.65 0.98 0.42 0.60 1.44 2.29 7.62 0.52 0.82 1.38 35.16 30.30 37.20 38.74 35.29 41.01 29.90 38.81 21.08 29.28 36.47 29.80 29.18 24.00 36.75 38.18 38.31 32.75 43.48 39.52 1.94 1.48 0.17 1.59 0.78 1.77 0.29 5.06 0.19 4.88 1.60 0.97 0.36 0.57 1.41 2.25 7.47 0.48 0.75 1.35 1.99 1.54 0.17 1.62 0.79 1.81 0.31 5.11 0.22 4.98 1.62 0.98 0.38 0.59 1.43 2.25 7.56 0.50 0.76 1.36 2.01 1.54 0.16 1.60 0.80 1.65 0.32 5.11 0.25 5.07 1.62 1.01 0.39 0.61 1.44 2.26 7.59 0.51 0.72 1.37 Vol 45,700 1,078,700 1,000 3,900 2,300 2,000 900 36,000 5,305,500 3,890,200 191,200 69,100 100 349,400 14,000 11,600 22,200 33,000 10,000 103,500 20-day avg vol 56,005 561,020 1,765 395 20,365 4,185 24,410 114,345 1,486,860 4,582,645 51,950 96,545 48,395 520,420 14,040 8,080 52,545 69,890 2,975 78,420 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
20. Thursday , 06 July, 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