Bursa Malaysia Daily Market Report - 8 August

Transcription

1. Tuesday , 08 August, 2017 For Internal Circulation Only TA RESEARCH’S ‘DAILY COMPILED REPORTS’ News 1. Daily Market Commentary 2. Daily Brief Fundamental Reports 1. DiGi.Com Berhad: Defending Core, While Embracing Digital 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 Tuesday, 08 August 2017 TA Research e-mail : taresearch@ta.com.my For Internal Circulation Only KLSE Market Statistics (07.08.2017) Volume (mil) +/-chg (RMmn) Main Market 1,210.9 316.4 1,484.3 Warrants 145.9 -42.8 21.4 ACE Market 569.1 252.2 167.1 Bond 18.3 -0.9 2.4 ETF 0.9 0.70 0.9 Total 1,945.0 1,676.1 Off Market 31.8 -12.2 47.6 Value +/-chg 161.2 -18.0 60.5 -0.8 0.76 -228.4 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP August 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) 10.0 7.0 4.3 3.7 2.0 1.0 1.0 1.0 Up Down 262 381 67 69 28 58 4 5 2 3 363 516 % chg % YTD chg 1,777.91 12,629.54 17,140.37 1,781.00 3.38 9.67 -75.79 6.50 0.19 0.08 -0.44 0.37 8.29 10.14 16.48 8.90 22,118.42 6,383.77 7,531.94 20,055.89 2,398.75 27,690.36 3,320.67 1,573.67 5,749.29 3,279.46 1,872.29 5,773.56 25.61 32.21 20.23 103.56 3.30 127.68 -5.85 -4.59 -28.19 17.38 13.80 52.98 0.12 0.51 0.27 0.52 0.14 0.46 -0.18 -0.29 -0.49 0.53 0.74 0.93 11.92 18.59 5.45 4.93 18.37 25.86 15.27 1.99 8.54 5.66 -4.92 1.90 Top 10 KLCI Movers Based on Mkt Cap. Off Market REACH XIANLNG AEM YINSON VOIR PETGAS SEACERA TAWIN Review & Outlook Value/ Volume 1.23 0.15 0.29 0.13 1.08 0.86 1.50 (RM) @ 0.37 @ 0.45 @ 0.20 @ 3.50 @ 0.90 @ 18.84 @ 1.31 @ 1.15 Counter Mkt Cap. (RM’mn) MAYBANK 102,274 TENAGA 80,245 IHH 60,468 CIMB 56,240 AXIATA 45,223 MAXIS 43,461 PETGAS 37,319 GENTING 36,986 MISC 33,478 HLBANK 28,340 Chg (RM) 0.05 0.02 0.06 0.02 0.03 0.04 0.16 0.01 0.10 0.05 Vol. (mn) 11.19 6.06 8.30 2.21 7.20 13.12 0.19 1.65 1.06 0.68 Important Dates CAB - 1:4 Bonus Issue - BI of 138.6m subdivided shares. 1 bonus share for every 4 subdivided shares. LISTING ON: 07/08/2017. Blue chips rose on Monday, pushing the benchmark index up to a six-week high, lifted by regional strength encouraged by last Friday's stronger-thanexpected U.S. jobs data. The KLCI gained 3.38 points to close at 1,777.91, off an early low of 1,771.90 and high of 1,778.48, but losers beat gainers 516 to 363 on improved turnover of 1.94bn shares worth RM1.67bn. While the rebound on the index is positive, stronger buying momentum and market breadth is crucial to absorb profit-taking and sustain the recovery. Immediate support stays at the 100-day moving average now at 1,762, which must hold to prevent further correction to 1,729, a key support level in April. Immediate resistance is at 1,782, the 76.4%FR of the April 2015 high of 1,867 to the Aug 2015 low of 1,503, followed by the recent peak of 1,796. A daily stochastics buy signal supports further rebound potential for Gadang towards the upper Bollinger band (RM1.33), while a confirmed breakout above the 3/7/17 high (RM1.37) will aim for the 123.6%FP (RM1.50) ahead. Uptrend support is from the 200-day ma (RM1.18). Bullish momentum on Suncon enhances breakout potential above the 138.2%FP (RM2.21) to target the 150%FP (RM2.32) and 161.8%FP (RM2.42) going forward. Key retracement support from the 123.6%FP (RM2.08) is reinforced by the 100-day ma (RM1.97). News Bites • • • • • • • • • Bank Negara's international reserves rose US$300mn to US$99.4bn as at July 31, 2017. It is sufficient to finance 7.9 months of retained imports and is 1.1 times the short-term external debt. The Sarawak wholly-owned oil and gas company or Petros has been officially formed to actively participate in the extraction of oil and gas in the state Sarawak while still pursuing its request for a 20% royalty from Petronas. The East Coast Economic Region Development Council signed deals with 14 foreign and domestic investors involving investments worth RM9.9bn. Hwang Capital (M) Bhd has received undertakings from two shareholders - DBS Vickers Securities Pte Ltd and DBS Bank Ltd - to vote in favour of its proposed selective capital reduction and repayment exercise aimed at taking the company private. Eastern & Oriental Bhd shareholders have approved the disposal of a development land portion at the Seri Tanjung Pinang Phase 2 project to the Retirement Fund Inc (KWAP) for RM766.02mn. Malaysia Smelting Corp Bhd registered a net profit of RM9mn in 2QFY17, compared with losses of RM10.3mn seen in the same period last year on the back of better associates and joint ventures' contribution. Country Garden Holdings Co. said it's looking to attract customers from countries such as Thailand and Vietnam as some Chinese buyers hit by capital controls have pulled back from the $100 billion Forest City project in southern Malaysia. Kronologi Asia Bhd has fixed the price of the shares to be issued under its private placement exercise at 79 sen apiece and expects to raise gross proceeds of RM21.36mn if all the placement shares are placed out. China's foreign-exchange reserves rose $23.93bn from the previous month to $3.081bn, the highest level in nine months. Exchange Rate USD/MYR 4.2843 0.0066 USD/JPY 110.85 0.7800 EUR/USD 1.180 -0.0072 Commodities Futures Palm Oil (RM/mt) 2,581.00 -34.00 Crude Oil ($/Barrel) 49.31 -0.21 Gold ($/tr.oz.) 1,260.10 -1.20 ELKDES A - 1:5 Rights Issue - RI of up to 51.6m shares. ELKDESA 1 rights share for every 5 existing shares held, at an issue price of RM1.16 per rights share. Entitlement Date: 08/08/2017. Trading of Rights: 09/08 - 15/08/2017. Application Closed: 23/08/2017. LISTING ON: 08/09/2017. 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 Tuesday , August 08, 2017 FBMKLCI: 1,777.91 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+603-2072 1277 taresearch@ta.com.my taresearch@ta.com.my www.taonline.com.my Stronger Buying Momentum Crucial to Sustain Recovery Blue chips rose on Monday, pushing the benchmark index up to a six-week high, lifted by regional strength encouraged by last Friday’s stronger-than-expected U.S. jobs data. The KLCI gained 3.38 points to close at 1,777.91, off an early low of 1,771.90 and high of 1,778.48, but losers beat gainers 516 to 363 on improved turnover of 1.94bn shares worth RM1.67bn. Resistance at 1,782, Then 1,796 While the rebound on the index is positive, stronger buying momentum and market breadth is crucial to absorb profit-taking and sustain the recovery. Immediate support stays at the 100-day moving average now at 1,762, which must hold to prevent further correction to 1,729, a key support level in April. Immediate resistance is at 1,782, the 76.4%FR of the April 2015 high of 1,867 to the Aug 2015 low of 1,503, followed by the recent peak of 1,796. BUY Gadang & SunCon A daily stochastics buy signal supports further rebound potential for Gadang towards the upper Bollinger band (RM1.33), while a confirmed breakout above the 3/7/17 high (RM1.37) will aim for the 123.6%FP (RM1.50) ahead. Uptrend support is from the 200-day ma (RM1.18). Bullish momentum on Suncon enhances breakout potential above the 138.2%FP (RM2.21) to target the 150%FP (RM2.32) and 161.8%FP (RM2.42) going forward. Key retracement support from the 123.6%FP (RM2.08) is reinforced by the 100-day ma (RM1.97). Asian Markets Higher on Upbeat U.S Jobs Report Asian stock markets traded higher on Monday following Friday’s better-than-expected U.S. jobs report. Investors also await to hear Pyongyang's response to U.N sanctions over the weekend. Japan stocks rose as the yen slipped slightly against the U.S dollar. The Nikkei shares average gained 103.56 points or 0.52 percent to 20,055.89, led by sharp gains for Toyota Motor Corp after it raised its earnings outlook. Korean Kospi ended higher by 0.14 percent to 2,398.75, continuing a rebound from a selloff last week stoked by the potential for tax increases. In down under, the benchmark ASX200 ended higher by 0.93 percent to close at 5,773.56, with mining stocks adding to recent gains amid the advance in Chinese iron ore futures. Meanwhile, China stock ended higher as its foreign-exchange reserves posted a sixth straight monthly increase as the yuan strengthened and economic growth remained robust. The blue-chip CSI300 index gained 0.52 percent to 3,726.80 points, while the Shanghai Composite Index rose 0.54 percent to 3,279.54 points. Tech and Consumer Stocks Lifts Wall Street Higher U.S stock markets traded higher on Monday with the Dow notching its ninth straight record close, led by gains in Boeing and Goldman Sachs. Robust second-quarter earnings have boosted the broader market in recent weeks and a strong July employment report on Friday added to positive sentiment. The S&P's consumer staples index was up 0.7 percent, while technology index ended 0.6 percent higher. Tyson Foods added 5.7 percent after the Page 1 of 7
4. TA Securities 8-Aug-17 A Member of the TA Group company reported better-than-expected profit and revenue . Shares of NxStage Medical jumped 28.2 percent after it agreed to be bought by Fresenius Medical Care. Meanwhile, energy sector led the laggards with a 0.9 percent drop as oil prices edged lower on a rebound in production from Libya's largest oil field, along with worries about higher output from OPEC and the United States. The Dow Jones Industrial Average rose 25.61 points, or 0.12 percent, to 22,118.42, the S&P 500 gained 4.08 points to 2,480.91 and the Nasdaq Composite rose 32.21 points or 0.51 percent at 6,383.77. Page 2 of 7
5. TA Securities 8-Aug-17 A Member of the TA Group News In Brief Corporate Eastern & Oriental Bhd (E&O) shareholders have approved the disposal of a development land portion at the Seri Tanjung Pinang Phase 2 (STP2) project to the Retirement Fund Inc. (KWAP) for RM766.02mn. The land covers 20% sale of net development land measuring 1.445mn sq ft on Phase 2A of the STP2 (STP2A) (Bernama). Malaysia Smelting Corp Bhd’s second financial quarter ended June 30, 2017 (2QFY17) saw it return into the black, registering a net profit of RM9mn, compared with losses of RM10.3mn seen in the same period last year on the back of better associates and joint ventures' contribution (The Edge). The Sarawak wholly-owned oil and gas company or Petros has been officially formed. The formation of Petros is an unprecedented step taken by the state government to enable Sarawak to actively participate in the extraction of oil and gas in Sarawak while still pursuing its request for a 20% royalty from Petronas (Bernama). IOI Corp Bhd has announced a second interim single tier dividend of five sen per share for the year ended June 30, 2017 (FY17). The dividend is payable on Sept 15 with the ex-date fixed for Aug 24. For the nine months ended March 31 (9MFY17), the group’s net profit slid 38% to RM425.7mn from RM688.7mn a year earlier, while revenue increased 17% to RM10.43bn from RM8.92bn (The Edge). Country Garden Holdings Co. said it’s looking to attract customers from countries such as Thailand and Vietnam as some Chinese buyers hit by capital controls have pulled back from the $100 billion Forest City project in southern Malaysia. China’s escalating crackdown on capital outflows this year has spooked buyers seeking to invest in property abroad, with some reconsidering past purchases and others holding off on new purchases. Country Garden said it expects to open galleries targeting customers in the Philippines, Indonesia, Vietnam, Thailand, Taiwan and Dubai between August and October, and plans to invest an additional RM5bn this year in Forest City (Bloomberg). Padini Holdings Bhd has completed the registration of Padini (Cambodia) Co Ltd in Cambodia on Aug 2 for a cash consideration of 20mn Riels (USD5,000). Padini is the holder of 100% of the total shares in Padini Cambodia, which comprise of 1,000 shares, each with a par value of 20,000 Riels (StarBiz). Comment: This comes as no surprise as Padini has guided that the group is looking to expand its business in ASEAN. Normally, Padini stores outside of Malaysia operate through licensing of Vincci brand to overseas partners. However, in this case Padini plans to setup a new shop in Phnom Penh, which we believe to control corporate branding and quality in overseas stores. We project that Padini will open one shop by the end of the year to test the market. It will have immaterial impact to FY17- FY18 earnings. We are neutral on this news given the negligible impact on earnings, hence made no change in earnings. Maintain Buy call with unchanged target price of RM4.10/share based on 16x CY18 EPS. The East Coast Economic Region Development Council (ECERDC), the body that oversees the development of the East Coast Economic Region (ECER), signed deals with 14 foreign and domestic investors involving investments worth RM9.9bn. The investments were in key sectors such as manufacturing, tourism, bio-economy and real estate (Bernama). Hwang Capital (M) Bhd has received undertakings from two shareholders — DBS Vickers Securities Pte Ltd and DBS Bank Ltd — to vote in favour of its proposed selective capital reduction and repayment (SCR) exercise aimed at taking the company private. DBS Vickers and DBS Bank together hold a 27.66% stake in Hwang Capital. The SCR proposal will be tabled to shareholders at an upcoming extraordinary general meeting (Bursa Malaysia). Page 3 of 7
6. TA Securities 8-Aug-17 A Member of the TA Group Kronologi Asia Bhd has fixed the price of the shares to be issued under its private placement exercise at 79 sen apiece . The company is expected to raise gross proceeds of RM21.36mn if all the placement shares are placed out. The bulk of the proceeds to repay its transnational infrastructure equipment, future business expansion, working capital and estimated expenses in relation to the proposed private placement (Bursa Malaysia). PIE Industrial Bhd reported a profit increase of 74% to RM10.69mn from RM6.13mn a year ago in its second quarter ending June 30, 2017. This was on the back of a 30% or RM40.18mil year-on-year jump in revenue to RM176.06mn as well as lower operating expenses and reversal of slow-moving inventory (StarBiz). Palette Multimedia Bhd has entered into another sales contract with Trade House Atlantis Ltd. According to the terms of the contract, a hardware platform valued at USD450K is due to be delivered latest by Jan 15, 2018 (StarBiz). Page 4 of 7
7. TA Securities 8-Aug-17 A Member of the TA Group News In Brief Economy Asia Bank Negara International Reserves Rise to US $99.1bn Bank Negara international reserves rose US$300mn to US$99.4bn as at July 31, 2017 from US$99.1bn on July 14, 2017. The central bank said its reserves, in ringgit terms, rose to RM427bn from RM425.4bn as at July 14. It said the reserves position was sufficient to finance 7.9 months of retained imports and was 1.1 times the short-term external debt. The main components of the reserves are foreign currency reserves (US$93bn), International Monetary Fund reserves position US$800mn, Special Drawing Rights or SDRs (US$1.1bn), gold (US$1.5bn) and other reserve assets (US$3bn). (The Star) China Forex Reserves Rose for Sixth Straight Month in July China’s foreign-exchange reserves rose for a sixth straight month in July, underscoring Beijing’s success in keeping money from moving offshore with some help from a weaker U.S. dollar. Reserves rose $23.93 billion from the previous month to $3.081 trillion, the highest level in nine months, according to figures from the People’s Bank of China released. July’s increase is bigger than economists’ median forecast of a $15 billion gain and was the sixth month in a row of increases, the longest stretch in three years. Some economists said the string of increases is changing expectations in the market about where the PBOC is taking the yuan. The U.S. dollar index, which tracks the dollar against a basket of major currencies, declined 3% last month, while the dollar dropped 0.75% against the yuan on China’s onshore market in July. Foreign-exchange rate changes boosted China’s reserves by some $24 billion to $30.6 billion in July, according to estimates of economists. Factoring in China’s usual trade surplus, economists estimate that some $18 billion to $27 billion of money left the country last month. (The Wall Street Journal) Indonesia 2Q GDP Misses Expectations on Consumption, Commodities Indonesia's annual economic growth grew more slowly than expected in the Q2, with growth in some key sectors slowing and pivotal private consumption remaining sluggish. Southeast Asia's largest economy grew 5.01% in April-June from a year earlier, slower than expected and unchanged from the Q1 pace. Indonesia has been struggling to accelerate growth meaningfully to create jobs and improve the livelihood of its 250 million population. President Joko Widodo promised to revive growth to 7% during his five-year term, which will end in 2019. This year, he had to settle for a 5.2% growth target. Private consumption, which accounts for more than half of Indonesia's GDP, expanded slightly faster in the Q2 compared to the Q1, but grew more slowly against a year ago. Suhariyanto, the head of the statistics bureau, told a news conference on there was a slowdown in growth of debit transactions, which could indicate "people psychologically holding back spending to see what's going on in the global economy". (The Edge Market) Australia Construction Sector Surges in July – AiG The construction sector in Australia continued to expand in July, and at an accelerated rate, the latest survey from the Australian Industry Group said with a record Performance of Construction Score of 60.5. That's up sharply from 56.0 in June, and it moves farther above the boom-or-bust line of 50 that separates expansion from contraction. It's also the highest reading on record since the series began in 2005. Individually, the rate of expansion in commercial construction moved to a 12-year high, while house building recorded its fastest pace of growth in 31/2 years. More robust conditions were also evident in engineering construction and apartment building activity. Other news in Australia: • Total job ads rose a seasonally adjusted 1.5% MoM in July, slower than the 2.7% climb in June. Annual growth in job ads accelerated to 12.8% in July from 10.5% in the preceding month. Page 5 of 7
8. TA Securities 8-Aug-17 A Member of the TA Group • The Commonwealth Bank of Australia said a software "coding error" was responsible for the "vast majority" of the anti-money laundering law breaches it was accused of last week. The Australian government on Thursday accused the country's biggest mortgage lender of widespread breaches of money-laundering and counter-terrorism financing rules, sending the bank's shares sliding. (The Star/Reuters/RTT News) Japan Leading Index Highest Since Early 2014 Japan's leading index reached its highest level in more than three years in June, preliminary data from the Cabinet Office showed. The leading index, which measures the future economic activity, rose to 106.3 in June from 104.7 in May. This was the highest score since March 2014, when the reading was 106.7 and slightly above the expected level of 106.2. Likewise, the coincident index that reflects the current economic activity, came in at 117.2, the highest since March 2014, versus 115.8 a month ago. The score came in line with expectations. The lagging index advanced to 118.1 in June from 116.4 in the previous month. (RTT News) United States U.S. Consumer Credit Rises Less than Expected in June A report released by the Federal Reserve showed consumer credit in the U.S. increased by less than expected in the month of June. The Fed said consumer credit rose by $12.4 billion in June after jumping by $18.3 billion in May. Economists had expected consumer credit to climb by $15.5 billion. Non-revolving credit such as student loans and car loans increased by $8.2 billion in June after climbing by $11.5 billion in May. Revolving credit, which largely reflects credit card debt, edged up by $4.1 billion in June after rising by $6.9 billion in the previous month. The Fed said consumer credit increased by an annual rate of 3.9% in June, as revolving and non-revolving credit rose by 4.9% and 3.5%, respectively. (RTT News) Conference Board’s Employment Trends Index Rose in July A basket of U.S. employment indicators increased in July, a potential sign of strengthening job growth. The Conference Board said its employment trends index rose to 133.77 in July from its revised June reading of 132.42. The July figure represents a 4.8% gain from last year. The Conference Board’s employment trends index combines eight market indicators, including industrial-production figures from the Federal Reserve, job openings from the Bureau of Labor Statistics and jobless claims from the U.S. Department of Labor. The index filters out volatility in data to more clearly reveal underlying trends in employment conditions. The report follows the Labor Department’s release of its July jobs report Friday, which showed the U.S. unemployment rate fell to 4.3%, down 0.1 percentage point from the prior month. The rate suggests the labor market is near full employment. The increase suggests “solid hiring and further tightening of the labor market in the months ahead,” said Gad Levanon, chief economist, North America, at the Conference Board. (The Wall Street Journal) Europe and United Kingdom UK Consumer Spending Sees Longest Decline Since 2013: Visa British consumer spending fell for the third month in a row in July in its longest losing streak in over four years, according to data released, in another sign that the impact of last year's Brexit vote is rippling through to households. Overall consumer spending, the engine of the British economy, dropped by 0.8% in real terms last month compared with July 2016, payments company Visa said. That was quicker than June's 0.2% fall, and following a further drop in May it marks the longest consecutive decline since February 2013, when a still-frail economy was struggling to recover from the financial crisis. Kevin Jenkins as a Visa's managing director for the United Kingdom and Ireland said that the figure provides further evidence that rising prices and stagnant wage growth are squeezing consumers' pockets. Last week the Bank of England downgraded its forecast for economic growth this year and next, due partly to slower-than-expected wage rises, and it sees a weaker outlook for household spending than for other sectors of the economy. Visa's data chimed with other signs that households are under financial pressure - from lacklustre retail sales to falling new car registrations and mortgage approvals. (The Business Times) Page 6 of 7
9. TA Securities 8-Aug-17 A Member of the TA Group Eurozone Investor Morale Stable , but Expectations Dropping Investor sentiment in the euro zone remained stable in August, buoyed by strong current conditions, but future expectations slumped amid growing concerns about the U.S. economy and the potential impact of a widening car emissions scandal. The Frankfurtbased Sentix research group's Eurozone index edged lower to 27.7 points from 28.3 points in July, in line with the mid-range forecast of 27.8 in a poll of analysts. But expectations fell to 16.0 points from 19.8 points in July in what the group called a worrying sign. Sentix said the investor sentiment index for the United States dropped to 14.1 in August from 14.8 in July, with investors growing increasingly cautious despite U.S. President Donald Trump's boast about "his successes". The index for Germany fell for a third consecutive month, to 33.2 from 37.5 a month earlier, with expectations collapsing to 5.75 points from 12.5 in July amid growing concern about the emissions scandal affecting some big German carmakers. (Reuters) German Industrial Output Drops in June, up in Second Quarter German industrial production unexpectedly fell for the first time this year in June, data showed, though it increased in the second quarter overall. Output declined by 1.1% on the month after rising 1.2% in May, the Economy Ministry data showed. But factories and construction firms in Europe's largest economy produced 1.8% more in the April-June period than in the first quarter and the ministry said order levels, along with business climate indicators, pointed to the upward trend continuing. But a scandal over diesel emissions and cartel allegations engulfing Germany's automobile industry could ultimately hurt the economy, he said, especially as cars make up around one fifth of German exports. The output data followed a run of upbeat economic indicators, painting a rosy picture of the economy that is likely to boost Chancellor Angela Merkel's chances of winning a fourth term in a national election on Sept. 24. (Reuters) Share Buy-Back: 07 August 2017 Company AMPROP BKAWAN DAIBOCI GLBHD GRANFLO SALCON TROP UNIMECH Bought Back Price (RM) Hi/Lo (RM) 75,000 100,000 8,000 100,000 10,000 180,000 70,000 2,000 0.85 19.14 2.20/2.18 0.60 0.24 0.475/0.45 0.955/0.95 1.07 0.845/0.84 19.16/19.00 2.20/2.18 0.605/0.60 0.24/0.23 0.485/0.45 0.955/0.95 1.07 Total Treasury Shares 14,477,800 32,838,931 195,000 8,268,800 6,619,800 2,507,762 3,482,042 5,368,010 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 7 of 7
10. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BAUTO MBMR UMW Share Price (RM) 07-Aug-17 1.95 2.20 5.69 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 5.04 0.86 0.56 1.32 10.3 24.1 19.7 15.8 25.3 30.6 18.9 9.1 28.8 12.3 8.7 18.6 6.0 4.1 2.3 8.1 4.1 3.5 2.44 2.70 6.47 -20.1 -18.5 -12.0 1.88 2.08 4.09 3.7 5.8 39.0 -8.5 2.8 34.7 4.80 3.70 5.70 8.00 17.50 11.00 23.60 5.80 11.10 1.25 0.87 1.34 1.45 0.62 0.90 0.78 1.32 0.72 33.6 29.4 43.9 49.6 105.2 71.4 137.2 50.7 40.2 30.5 33.6 48.4 55.2 115.5 80.7 142.4 54.5 39.0 11.6 8.7 11.2 13.5 14.9 13.6 15.1 9.9 26.2 12.8 7.6 10.2 12.1 13.6 12.0 14.5 9.2 27.0 4.1 3.1 3.6 3.0 2.6 5.2 2.7 2.4 3.2 4.1 3.1 3.7 3.4 2.6 5.2 2.8 2.4 3.2 4.49 3.00 5.70 6.87 16.30 9.77 20.76 5.59 11.14 -13.1 -15.0 -13.5 -2.8 -3.6 -0.7 -0.5 -10.6 -5.4 3.60 2.08 3.90 4.42 12.70 7.50 19.38 4.53 8.20 8.3 22.6 26.4 51.1 23.8 29.3 6.6 10.4 28.5 4.8 6.7 14.4 48.1 16.4 18.3 4.8 6.2 19.1 0.35 1.26 5.40 3.44 0.63 1.09 2.18 1.87 5.86 0.45 1.75 6.00 3.50 0.78 0.58 2.26 1.49 6.26 0.61 0.46 1.03 1.07 0.84 1.10 na 0.96 0.16 5.5 15.3 27.9 15.3 4.9 8.3 12.7 11.5 42.0 5.5 14.3 34.6 20.2 5.7 9.6 12.5 11.6 45.7 6.2 8.3 19.4 22.5 12.6 13.1 17.2 16.2 14.0 6.3 8.8 15.6 17.0 10.9 11.3 17.4 16.2 12.8 0.0 2.4 2.2 2.2 4.0 0.9 2.5 1.6 4.3 0.0 2.4 2.2 2.8 4.0 0.9 2.5 1.6 4.3 0.51 1.37 5.52 3.61 0.74 1.39 2.20 2.48 6.15 -32.4 -8.0 -2.2 -4.7 -15.0 -21.6 -0.9 -24.4 -4.7 0.35 0.89 4.65 3.07 0.37 0.41 1.56 1.52 5.57 0.0 42.4 16.1 12.1 68.9 169.1 39.7 23.0 5.2 -20.7 20.0 13.0 7.5 3.3 89.6 28.2 8.7 -0.3 1.34 1.97 1.58 2.00 na 0.43 8.6 11.0 11.8 11.5 15.5 17.9 11.4 17.1 3.0 5.1 4.5 5.1 1.49 2.19 -10.1 -10.0 0.85 1.93 58.6 2.1 54.0 -2.0 14.82 18.10 17.84 19.14 0.47 0.46 74.8 79.6 81.3 84.0 19.8 22.7 18.2 21.6 5.0 4.0 5.5 4.2 15.30 19.10 -3.1 -5.2 13.72 15.56 8.0 16.3 6.5 10.5 2.12 7.20 24.68 1.21 84.00 3.98 2.03 4.99 0.88 2.23 8.62 27.41 1.50 88.66 4.10 2.46 4.32 1.23 0.53 0.31 0.25 0.37 0.37 0.50 0.57 0.26 0.20 6.7 26.4 121.1 6.5 290.1 22.3 27.4 15.7 8.1 7.9 40.6 151.0 6.6 327.7 24.7 27.0 16.7 11.6 31.6 27.3 20.4 18.6 29.0 17.9 7.4 31.8 10.8 26.9 17.7 16.3 18.4 25.6 16.1 7.5 29.9 7.6 1.9 1.4 2.8 5.0 3.3 3.8 3.0 0.9 2.9 2.2 2.1 3.0 5.0 3.3 4.3 3.9 0.9 4.0 3.00 8.85 26.00 1.30 85.20 4.03 2.06 5.00 1.07 -29.3 -18.6 -5.1 -6.8 -1.4 -1.2 -1.5 -0.2 -18.2 2.11 7.20 22.44 1.13 74.12 2.26 1.50 4.14 0.78 0.5 0.0 10.0 7.0 13.3 76.1 35.3 20.5 12.2 -17.5 -1.8 5.1 5.1 7.4 56.7 17.3 15.2 10.1 44.66 52.08 0.97 198.6 187.4 22.5 23.8 4.5 4.5 51.50 -13.3 40.61 10.0 1.1 9.76 6.05 11.51 6.54 1.40 1.32 49.3 25.7 54.7 27.7 19.8 23.5 17.8 21.8 0.5 1.3 0.6 1.5 10.00 6.38 -2.4 -5.2 7.50 4.22 30.2 43.3 22.8 33.9 2.34 0.12 3.34 0.13 0.76 1.17 19.3 0.4 23.2 0.4 12.1 31.7 10.1 31.9 6.0 0.0 6.8 0.0 3.42 0.16 -31.6 -28.1 2.28 0.05 2.6 130.0 -20.9 130.0 5.93 4.19 6.39 4.70 0.74 0.49 9.5 13.3 14.9 16.4 62.2 31.5 39.7 25.5 0.6 1.5 0.6 1.8 6.73 4.37 -11.9 -4.1 5.54 3.85 7.0 8.8 -6.6 0.2 7.17 7.15 1.89 5.66 1.48 6.85 7.60 1.80 6.05 2.20 0.50 0.02 0.10 -0.38 0.15 17.2 35.8 12.4 26.4 3.7 24.5 40.0 15.1 29.8 5.5 41.7 20.0 15.3 21.4 39.7 29.2 17.9 12.5 19.0 26.9 1.1 2.5 1.9 2.3 0.6 1.5 2.8 2.4 2.6 0.9 7.40 7.36 2.38 5.94 2.64 -3.1 -2.9 -20.6 -4.7 -43.9 4.10 5.62 1.88 4.20 1.47 74.9 27.2 0.5 34.8 0.7 48.4 8.5 -10.4 5.8 -37.3 INDUSTRIAL SCIENTX SKPRES 8.60 1.40 9.71 1.75 0.41 0.37 54.5 8.6 66.3 10.6 15.8 16.3 13.0 13.2 2.1 3.0 2.3 3.7 8.99 1.45 -4.3 -3.4 6.01 1.15 43.1 21.7 28.4 8.5 MEDIA ASTRO MEDIA PRIMA STAR 2.63 0.81 2.25 3.50 0.60 1.40 1.13 0.60 0.63 13.2 1.7 7.1 14.5 2.8 6.5 19.9 47.2 31.7 18.2 28.5 34.7 4.8 1.7 8.0 4.9 2.8 8.0 3.01 1.47 2.65 -12.6 -45.2 -15.1 2.47 0.80 2.19 6.5 1.3 2.7 1.2 -30.0 0.4 -24.6 -33.5 -40.1 -5.1 -3.7 -9.9 -29.5 -16.5 -72.6 0.21 4.14 0.68 7.03 0.44 6.48 1.33 1.51 0.29 153.7 4.8 2.2 6.7 50.6 8.5 11.3 27.2 0.0 103.9 -33.2 -24.0 2.0 47.2 0.7 -8.6 28.0 -67.4 -26.8 1.30 11.5 -14.7 BANKS & FINANCIAL SERVICES AFG 3.90 AFFIN 2.55 AMBANK 4.93 CIMB 6.68 HLBANK 15.72 MAYBANK 9.70 PBBANK 20.66 5.00 RHBBANK BURSA 10.54 CONSTRUCTION BPURI GADANG GAMUDA IJM PESONA SENDAI SUNCON WCT LITRAK Building Materials CHINHIN 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 0.52 0.76 0.89 3.7 4.6 14.2 11.4 1.9 1.9 0.69 LCTITAN 4.34 6.88 na 43.1 64.9 10.1 6.7 3.9 7.1 6.53 MHB 0.70 0.78 1.97 -2.0 -0.5 na na 0.0 0.0 1.16 MISC 7.50 6.85 0.87 56.4 48.9 13.3 15.3 4.0 4.0 7.90 PANTECH 0.66 0.69 1.20 4.0 6.1 16.5 10.7 2.7 4.2 0.68 PCHEM 7.03 7.74 1.07 39.2 40.5 17.9 17.4 3.0 3.1 7.80 SENERGY 1.48 1.71 2.50 6.6 4.0 22.4 37.3 0.7 0.7 2.10 SERBADK 1.92 2.77 na 22.1 25.2 8.7 7.6 3.5 3.9 2.30 UMWOG 0.29 0.80 2.00 -12.0 -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 1.45 1.55 1.52 10.9 11.5 13.3 12.6 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 1.59 3.09 4.51 24.80 9.39 6.42 Target Price BETA (RM) 1.55 3.88 4.15 26.19 10.02 7.52 1.89 0.43 1.15 0.85 1.26 0.34 EPS (sen) PER (X) FY17 FY18 FY17 FY18 4.2 12.3 18.8 111.7 34.0 37.5 8.5 15.7 21.1 119.1 37.5 34.5 37.7 25.1 24.0 22.2 27.6 17.1 18.7 19.6 21.4 20.8 25.0 18.6 Div Yield (%) 52weeks 52weeks FY17 FY18 High Price % Chg Low Price % Chg 3.1 2.3 2.2 2.2 2.7 3.6 3.1 2.6 2.7 2.4 3.3 2.6 2.52 3.70 4.81 25.50 9.70 6.55 -36.9 -16.5 -6.2 -2.7 -3.2 -2.0 1.42 2.95 4.30 23.00 7.56 5.50 PROPERTY GLOMAC 0.68 0.70 0.39 1.6 6.3 42.7 10.8 4.0 4.0 0.83 -17.6 0.61 HUAYANG 0.84 0.96 0.55 17.3 10.2 4.8 8.2 4.8 2.4 1.43 -41.7 0.82 IBRACO 0.90 1.00 0.47 5.2 11.1 17.1 8.0 3.9 4.5 1.05 -14.8 0.76 IOIPG 2.07 2.25 0.89 17.4 17.4 11.9 11.9 3.4 3.6 2.46 -15.9 1.85 MAHSING 1.57 1.76 0.76 14.3 13.5 11.0 11.6 4.1 4.1 1.70 -7.6 1.34 SNTORIA 0.82 0.98 0.20 6.2 10.3 13.2 7.9 1.2 1.2 1.00 -18.5 0.69 SPB 4.88 5.98 0.56 25.6 22.8 13.0 14.6 2.5 2.5 5.19 -6.0 4.32 SPSETIA 3.33 4.10 0.69 11.6 12.5 37.1 34.5 4.2 4.2 4.50 -26.0 3.02 SUNWAY 4.30 4.16 0.45 15.5 15.6 17.5 17.4 1.2 1.2 4.40 -2.3 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 1.72 1.88 0.48 8.9 10.2 19.4 16.9 5.2 5.9 1.84 -6.5 1.63 CMMT 1.49 1.72 0.53 8.1 8.6 18.4 17.3 5.6 6.0 1.72 -13.4 1.45 % Chg YTD 12.0 4.7 4.9 7.8 24.2 16.6 2.6 -9.1 2.5 3.3 15.9 7.5 11.5 2.5 18.5 12.0 17.2 18.1 12.9 10.3 51.3 -2.2 -26.1 -10.5 6.2 9.8 1.9 10.4 6.4 43.3 5.5 2.8 0.0 -2.6 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.04 23.80 18.86 14.18 1.43 1.13 21.47 19.60 17.38 1.45 0.70 0.73 0.79 0.92 0.50 7.1 98.5 88.2 131.9 8.2 6.4 102.4 101.3 130.6 10.6 14.6 24.2 21.4 10.7 17.3 16.2 23.3 18.6 10.9 13.5 6.7 3.1 3.3 3.1 4.9 6.7 3.2 3.8 3.2 3.5 1.80 25.70 22.50 14.90 1.64 -42.2 -7.4 -16.2 -4.8 -12.8 1.01 22.96 18.10 13.00 1.38 3.0 3.7 4.2 9.1 3.6 -24.1 0.0 -11.5 2.0 -4.0 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 4.83 4.80 5.79 6.40 5.20 4.90 5.85 7.50 1.39 0.98 0.75 0.65 14.5 20.0 24.5 21.4 15.9 20.4 24.7 22.3 33.2 24.0 23.6 29.8 30.3 23.5 23.4 28.7 1.5 4.2 3.5 3.0 1.7 4.2 3.5 3.1 5.99 5.19 6.60 6.90 -19.4 -7.5 -12.3 -7.2 4.11 4.63 5.48 5.81 17.5 3.7 5.7 10.2 2.3 -0.6 -3.2 7.6 TECHNOLOGY Semiconductor & Electronics IRIS 0.17 INARI 2.51 MPI 14.02 UNISEM 4.03 0.28 2.30 15.60 3.95 1.20 0.70 0.13 0.47 -2.3 10.2 94.2 26.9 -0.3 na 12.3 24.6 112.9 14.9 27.1 15.0 na 20.5 12.4 14.9 0.0 3.2 1.9 3.0 0.0 1.9 1.9 3.0 0.24 2.58 14.28 4.25 -31.3 -2.7 -1.8 -5.2 0.10 1.50 7.20 2.27 65.0 67.7 94.7 77.5 50.0 51.2 89.2 70.8 3.30 8.69 3.34 8.10 0.95 1.41 37.6 17.2 37.1 17.5 8.8 50.4 8.9 49.7 1.2 1.2 1.5 1.2 3.59 9.45 -8.1 -8.0 2.16 5.91 52.8 47.0 44.1 43.4 1.69 3.68 2.05 4.05 0.67 0.72 12.4 17.1 19.7 15.1 13.7 21.5 8.6 24.3 2.5 3.5 4.1 3.1 1.87 4.59 -9.6 -19.8 1.47 3.61 15.0 1.9 6.3 -14.4 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 21.15 OCBC 11.11 UOB 24.25 PLANTATIONS WILMAR IFAR 3.40 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 1.22 1.16 1.08 172.9 87.7 192.9 189.2 12.2 92.4 12.7 206.5 12.6 11.2 12.0 11.7 2.8 5.7 2.9 2.8 6.7 2.9 22.3 11.5 24.6 -4.9 -3.3 -1.4 14.72 8.84 17.51 43.7 33.4 38.5 22.0 24.6 18.9 3.72 0.53 0.91 1.11 28.9 4.9 31.1 5.2 10.9 9.1 2.4 2.5 2.6 2.7 4.0 0.6 -15.0 -20.2 3.03 0.44 12.2 8.0 -5.3 -9.5 11.8 9.8 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 Tuesday , August 08, 2017 FBMKLCI: 1,777.91 Sector: Telco A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 DiGi.Com Berhad TP: RM4.90 (+2.1%) Last Traded: RM4.80 Defending Core, While Embracing Digital SELL THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Paul Yap, CFA Tel: +603-2167 9603 paulyap@ta.com.my Digi organised a coffee chat session to introduce its new CFO, Nakul Sehgal, replacing the outgoing Karl Erik. Undergoing its latest transformation phase, it is embarking on a new digital customer journey and scaling new digital verticals. New divisions such as iTelco and Digi-X were formed to digitise its core and develop digital verticals. Operating on its new 900MHz network, indoor experience have been improved, opening up new potential markets in the postpaid and enterprise segment. As our key concern, competitive pressures are expected to remain fairly active in the market. However, low pricing is believed to be unsustainable in the long term due to network investment costs and profitability requirements by stakeholders. We leave our earnings unchanged. Maintain SELL on Digi with a TP of RM4.90/share. T H www.taonline.com.my Share Information Stock Code DIGI Listing Main Market Share Cap (m) 7,775.0 Market Cap (RMm) 37,320.0 52-wk Hi/Lo (RM) 5.19/4.63 12-mth Avg Daily Vol (shrs) 5,726.2 Estimated Free Float (%) 10.1 Beta 0.98 Major Shareholders (%) Telenor ASA - 49.0 EPF - 13.6 Amanah Saham Bumiputera - 8.1 Skim Amanah Saham - 7.3 Kumpulan Wang Persaraan - 5.3 New CFO As part of Telenor’s internal reshuffle, Nakul Sehgal will take over from Karl Erik Broten as the new Chief Financial Officer effective 1st August 2017. Karl Erik will be assigned a new role in the Telenor Group. Prior to this, Nakul Sehgal was the CFO and acting chief marketing officer (January to May 2017) of Telenor Hungary. Defending Core, While Embracing Digital Like it had done in the past, the group emphasised the need for continuous transformation. In its latest phase (from 2015 to 2020), it is embarking on a digital customer journey and scaling new digital verticals. This will be done by defending its existing core subscriber business, while at the same time, investing in new parts of its business. To undertake this task, new divisions such as iTelco and Digi-X were formed. iTelco is in charge of digitising its distribution channels and developing its MyDigi app. While concerns were raised on potential issues with its traditional distribution channels by moving digital, these were counterbalanced by benefits such as increased revenue sources (from new digital products) for dealers and improved production and efficiency. Through its mobile sales app, transactions can now be conducted on the go, with registration/activation times for prepaid and postpaid sims reduced to under 2 minutes and 1 minute (vs. 1 hour before). Forecast Revision (%) FY17 Forecast Revision (%) FY18 - - Net profit (RMm) 1,558 1,586 Consensus 1,559 1,567 TA/Consensus (%) 99.9 101.2 Previous Rating Sell (Maintained) Financial Indicators FY17 FY18 Net debt/EBITDA (x) 0.6 0.6 CFPS (sen) 39.6 29.6 P/CFPS (x) 12.1 16.2 ROE (%) 310.0 321.9 ROA (%) 27.4 26.0 NTA/Share (RM) 0.0 0.0 300.3 176.1 Price chg (%) DiGi KLCI 1 mth (4.0) 1.0 3 mth (5.3) 0.6 6 mth (4.6) 5.3 12 mth (3.2) 6.3 P/NTA (x) Share Performance (12-Mth) Share Price relative to the FBM KLCI Digi-X, meanwhile, is responsible for developing its digital verticals to supplement its existing core business. Some new start-ups formed include Vcash and iFleet. Vcash is an app that facilitates cashless transactions, without the need for costly mPOS terminals. iFleet is a fleet management system that provides users with location tracking abilities and the ability to analyse driver behaviours. At this point in time, contributions from Digi-X remain minimal. Potential is also seen in digital marketing, utilising data analytics. This can be used to develop bundles that satisfy customer needs, while monetisation activities can be derived through potential partnerships (e.g. Lazada, Tonton). Page 1 of 3 Source: Bloomberg
13. TA Securities 8-Aug-17 A Member of the TA Group Low Band Spectrum Open New Opportunities The group has launched its LTE 900MHz network in July 2017 . With indoor coverage traditionally being an issue, it is now able to address both postpaid and enterprise customers nationwide. Providing a proposition of nationwide availability, good speeds and affordable prices, targets are to serve the mid to high end postpaid customers (RM70-120/month). It is now also able to service the previously untapped enterprise segment. Competing not only on pricing, the idea is to provide solutions to enterprises. In this area, supplementing its core network proposition, management sees potential in deploying its iFleet solution. With the liberisation of the motor insurance industry, the tracking of good driver behaviours can lead to potential savings in insurance premiums. Competition to Be Fairly Active As a negative, however, competition is likely to remain fairly active in the future. We concur with this due to existing challenges in its migrant segment, efforts by Celcom to regain market share and planned launch of webe’s prepaid plan in the 2H2017. Lowering its guidance in the second quarter, the group is expecting a low to mid-single digit decline in service revenue for 2017. Nonetheless, management believes low pricing is unsustainable in the long term due to network investment costs and profitability requirements by stakeholders. All of the major mobile operators are listed, while U Mobile has long been rumoured to be eyeing an IPO. Valuation We value Digi at an unchanged TP of RM4.90/share. This is based on a DCF valuation with WACC at 7.7% and long term growth rate of 1.0%. While its postpaid segment continues to gain traction, immediate challenges remain its ability to stabilise prepaid revenues. Existing valuations are fair, as it trades within its historical average EV/EBITDA at 13.7x. Although implementation of a business trust structure could potentially be a rerating catalyst to unlock dividend upside, this is unlikely to be realised in the near term. SELL Figure 1 : Forward PE Figure 2 : EV/EBITDA x x 30.0 18.0 28.0 17.0 +1sd: 26.4x 26.0 16.0 24.0 15.0 +1sd: 15.1x Mean: 23.6x 13.0 Source: Bloomberg, TA Securities Source: Bloomberg, TA Securities Page 2 of 3 Aug-17 Feb-17 May-17 Aug-16 Nov-16 Feb-16 May-16 Aug-15 Nov-15 Feb-15 May-15 Aug-14 Nov-14 Feb-14 May-14 Aug-13 Nov-13 -1sd: 12.4x Aug-12 Aug-17 Feb-17 May-17 Aug-16 Nov-16 Feb-16 May-16 Aug-15 Nov-15 Feb-15 May-15 Aug-14 Nov-14 Feb-14 May-14 Aug-13 Nov-13 Feb-13 10.0 May-13 14.0 Aug-12 11.0 Nov-12 12.0 16.0 Feb-13 -1sd: 20.9x 18.0 May-13 20.0 Mean: 13.7x 14.0 Nov-12 22.0
14. TA Securities 8-Aug-17 A Member of the TA Group P &L FYE Dec (RMmn) Revenue EBITDA Depreciation & amortisation Net finance cost JV/Associates Others PBT Taxation MI Net profit Core net profit EPS (sen) DPS (sen) Ratios FYE Dec (RMmn) Valuations PER EV/EBITDA Dividend yield PBV Profitability ratios ROAE ROAA EBITDA margin PBT margin Liquidity ratios Current ratio Quick ratio Leverage ratios Total liabilities/equity Net debt/equity Int. coverage ratio Growth ratios Sales Pretax Earnings Total assets FY15 6,914 2,996 (642) (46) 0 0 2,309 (586) 0 1,723 1,710 22.0 22.0 FY16 6,597 2,955 (651) (66) 0 0 2,238 (606) 0 1,633 1,635 21.0 20.9 FY17F 6,242 2,835 (724) (62) 0 0 2,050 (492) 0 1,558 1,558 20.0 20.0 FY18F 6,382 2,904 (754) (63) 0 0 2,087 (501) 0 1,586 1,586 20.4 20.4 FY19F 6,524 2,973 (766) (61) 0 0 2,147 (515) 0 1,631 1,631 21.0 21.0 FY15 FY16 FY17F FY18F FY19F 21.8 13.1 4.6 71.9 22.8 13.3 4.4 71.9 24.0 13.9 4.2 76.8 23.5 13.6 4.2 74.7 22.9 13.3 4.4 71.4 283.7 38.1 43.3 33.4 314.9 32.2 44.8 33.9 310.0 27.4 45.4 32.8 321.9 26.0 45.5 32.7 319.2 25.2 45.6 32.9 0.4 0.3 0.8 0.7 0.4 0.4 0.5 0.5 0.5 0.5 8.0 2.0 51.5 9.6 3.7 35.1 11.1 3.6 34.1 11.6 3.5 34.0 11.7 3.3 36.3 (1.5) (12.7) (15.7) 8.3 (4.6) (3.1) (4.4) 17.9 (5.4) (8.4) (4.7) 7.1 2.3 1.8 1.8 7.1 2.2 2.9 2.9 5.3 Balance Sheet FYE Dec (RMmn) Fixed assets Associates + Subsidiaries Goodwill Others LT assets FY15 2,643 0 517 82 3,242 FY16 2,832 0 454 63 3,349 FY17F 2,985 0 940 63 3,988 FY18F 3,126 0 827 63 4,015 FY19F 3,258 0 728 63 4,048 Inventories Trade receivables Cash Others Current assets 117 922 234 148 1,420 48 1,708 377 17 2,149 78 780 1,027 17 1,903 80 798 1,397 17 2,291 81 816 1,680 17 2,594 Total assets 4,662 5,498 5,890 6,307 6,642 Trade payables ST borrowings Others Current liabilities 2,056 1,269 433 3,757 1,948 483 398 2,829 1,894 2,209 398 4,501 1,937 2,497 398 4,831 1,980 2,713 398 5,090 LT borrowings Others LT liabilities 25 360 386 1,799 351 2,150 552 351 904 624 351 976 678 351 1,029 Share capital Reserves Shareholders' funds MI 78 442 519 0 78 442 519 0 78 408 486 0 78 422 500 0 78 445 523 0 Total liabilities and equity 4,662 5,498 5,890 6,307 6,642 Cash Flow FYE Dec (RMmn) PBT Depreciation and amortisation Net interest Other non-cash Changes in WC Tax paid Finance cost Others Operational cash flow FY15 2,309 642 46 22 (128) (601) (56) (7) 2,225 FY16 2,238 651 66 51 (1,004) (484) (86) 100 1,532 FY17F 2,050 724 62 0 844 (492) (110) 0 3,077 FY18F 2,087 754 63 0 23 (501) (125) 0 2,302 FY19F 2,147 766 61 (0) 24 (515) (136) 0 2,346 Capex Interest received Others Investing cash flow (897) 11 0 (886) (776) 12 2 (761) (764) 48 -599 (1,314) (781) 62 0 (720) (799) 75 0 (724) Net share issue Dividend paid Net change in debts Others Financial cash flow 0 (1,889) 246 0 (1,643) 0 (1,633) 1,006 0 (627) 0 (1,591) 480 0 (1,112) 0 (1,572) 360 (0) (1,212) 0 (1,609) 270 0 (1,339) (304) 526 11 0 234 144 234 (1) 0 377 651 377 0 0 1,027 369 1,027 0 0 1,397 283 1,397 0 0 1,680 Net cash flow Opening cash flow Forex Others Closing cash flow 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. Tuesday , 08 August, 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 Tuesday , August 08, 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: 1,777.91 (+3.38, +0.19%) 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 7/8/2017 1777.91 2.55 3.90 4.93 4.83 6.68 4.80 5.40 9.76 6.05 5.93 4.51 1.04 5.79 9.70 1.23 5.00 9.39 14.18 6.40 3.68 3.30 0.38 0.69 0.35 3.97 1.94 1.56 1.11 1.26 1.52 1.29 2.35 1.08 1.11 1.17 1.23 1.48 2.18 1.17 0.99 1.87 Change 3.38 -0.01 0.01 0.06 0.04 0.06 -0.01 -0.01 0.01 0.00 -0.07 0.05 0.02 0.03 0.05 -0.01 0.02 -0.01 0.02 0.00 0.02 0.01 0.00 -0.01 -0.02 -0.03 0.01 0.00 0.00 0.02 0.00 -0.02 -0.03 0.01 -0.09 0.00 0.00 -0.03 0.06 0.02 0.01 -0.02 Tel: +603-2167-9607 High Low 1,778.48 1,771.90 2.56 3.90 4.95 4.84 6.71 4.81 5.42 9.79 6.08 6.00 4.51 1.10 5.79 9.77 1.26 5.03 9.40 14.20 6.41 3.68 3.33 0.39 0.70 0.36 4.00 1.94 1.57 1.12 1.28 1.53 1.32 2.35 1.09 1.19 1.19 1.24 1.53 2.20 1.19 0.99 1.94 2.55 3.88 4.87 4.79 6.62 4.74 5.39 9.70 6.03 5.90 4.45 1.04 5.75 9.64 1.23 4.97 9.38 14.14 6.38 3.64 3.29 0.38 0.69 0.35 3.85 1.92 1.55 1.10 1.25 1.52 1.28 2.35 1.07 1.11 1.17 1.22 1.48 2.11 1.15 0.98 1.85 Bollinger Bands Lower Mid Upper 1,748.08 1,762.59 1,777.10 2.54 3.81 4.89 4.56 6.19 4.65 5.26 9.14 5.61 5.90 4.45 1.01 5.42 9.57 1.22 4.97 9.37 14.09 6.29 3.64 3.08 0.38 0.68 0.35 3.67 1.88 1.53 1.04 1.23 1.50 1.16 2.19 1.06 1.15 1.13 1.23 1.48 1.97 1.13 0.88 1.85 2.60 3.91 5.00 4.70 6.45 4.79 5.37 9.55 5.93 5.95 4.48 1.04 5.60 9.63 1.26 5.04 9.50 14.17 6.39 3.69 3.22 0.39 0.71 0.38 3.92 1.92 1.59 1.11 1.28 1.56 1.34 2.28 1.18 1.29 1.30 1.25 1.57 2.07 1.19 0.94 1.92 2.66 4.00 5.12 4.84 6.70 4.93 5.47 9.95 6.26 6.01 4.52 1.06 5.79 9.69 1.30 5.11 9.63 14.24 6.49 3.74 3.36 0.40 0.75 0.40 4.17 1.96 1.65 1.18 1.33 1.63 1.52 2.36 1.31 1.43 1.47 1.28 1.66 2.18 1.25 1.00 1.99 stsoo@ta.com.my RSI Moving Averages 14d 10d 30d 50d 62.15 1,768.66 1,764.13 1,770.53 DMI DI + DI - ADX 25.13 15.01 14.94 Diff 10.12 30.03 46.98 42.87 56.82 62.97 44.57 52.85 58.55 58.82 47.97 54.66 46.90 66.63 62.47 39.55 39.60 28.95 52.97 46.66 47.82 56.66 31.47 32.64 19.42 50.99 54.68 43.10 46.07 44.32 31.41 41.84 59.92 23.46 23.08 29.21 37.40 30.95 67.03 42.78 68.90 39.25 10.48 13.71 17.45 25.55 34.75 11.49 18.15 16.51 26.05 18.85 22.39 24.92 35.00 24.77 9.24 8.15 12.78 21.84 10.56 17.22 23.74 9.83 9.08 5.91 22.12 18.03 17.60 18.98 18.73 15.49 27.66 41.28 12.16 18.04 15.50 12.42 8.51 29.20 15.64 35.27 17.10 (9.23) (2.57) (12.05) 10.22 21.83 (12.29) (7.39) 1.93 12.45 (2.42) 4.81 11.20 17.04 7.95 (10.27) (15.38) (12.00) 9.96 (14.64) 2.88 4.58 (6.53) (29.50) (7.39) 2.71 2.71 (9.46) (4.13) (5.95) (21.79) 0.28 16.50 (42.13) (27.24) (18.81) (7.75) (20.92) 22.57 (12.04) 24.20 (11.92) 2.58 3.93 4.97 4.71 6.55 4.79 5.38 9.70 6.07 5.95 4.48 1.03 5.67 9.64 1.25 5.02 9.46 14.18 6.37 3.68 3.24 0.39 0.70 0.37 3.89 1.93 1.58 1.12 1.26 1.53 1.30 2.30 1.13 1.24 1.23 1.25 1.54 2.12 1.17 0.97 1.91 2.62 3.89 4.99 4.73 6.49 4.86 5.40 9.49 5.84 5.94 4.48 1.04 5.58 9.63 1.28 5.05 9.51 14.15 6.46 3.68 3.21 0.40 0.73 0.39 3.96 1.92 1.61 1.14 1.29 1.58 1.41 2.27 1.21 1.32 1.34 1.26 1.59 2.05 1.20 0.94 1.97 2.66 3.97 5.03 4.84 6.53 4.91 5.39 9.63 5.80 5.93 4.50 1.08 5.80 9.59 1.30 5.11 9.51 14.13 6.49 3.73 3.21 0.40 0.74 0.40 4.02 1.92 1.60 1.16 1.29 1.60 1.50 2.26 1.24 1.39 1.36 1.27 1.68 2.05 1.22 0.94 2.03 19.72 16.28 29.50 15.33 12.91 23.78 25.53 14.58 13.60 21.27 17.58 13.72 17.96 16.82 19.51 23.53 24.77 11.88 25.20 14.34 19.16 16.36 21.46 35.41 29.51 15.33 27.06 23.11 24.68 37.27 27.37 24.78 54.29 45.28 34.32 20.17 29.44 6.64 27.67 11.07 29.02 23.09 15.08 12.44 18.63 26.51 33.75 22.00 15.83 30.46 10.27 15.12 37.16 33.18 16.65 29.31 35.92 25.31 24.28 33.22 12.29 11.19 16.60 30.34 40.66 23.97 17.77 22.77 16.37 18.23 32.11 14.44 18.19 34.59 21.84 25.50 15.53 39.56 30.60 35.79 31.06 20.12 www.taonline.com.my Line 1.62 -0.03 -0.01 -0.03 -0.02 0.05 -0.03 0.00 0.06 0.09 0.00 -0.01 -0.01 0.00 0.02 -0.02 -0.03 -0.03 0.01 -0.03 -0.02 0.02 -0.01 -0.01 -0.01 -0.02 0.01 -0.01 -0.01 -0.01 -0.03 -0.07 0.02 -0.05 -0.05 -0.06 -0.01 -0.05 0.03 -0.02 0.01 -0.04 MACD Signal (0.67) -0.03 -0.01 -0.02 -0.05 0.02 -0.04 -0.01 0.03 0.09 0.00 -0.01 -0.01 -0.04 0.02 -0.01 -0.03 -0.02 0.01 -0.04 -0.02 0.01 -0.01 -0.01 -0.01 -0.04 0.00 -0.01 -0.02 -0.01 -0.02 -0.08 0.01 -0.04 -0.04 -0.05 -0.01 -0.05 0.02 -0.02 0.01 -0.04 Diff 2.291 DMI MACD Recent Signal BUY BUY DMI MACD Signal Change - (0.002) 0.003 (0.007) 0.028 0.027 0.012 0.007 0.034 0.005 0.001 0.001 (0.007) 0.046 0.002 (0.002) (0.002) (0.018) (0.003) 0.009 0.000 0.009 (0.000) (0.001) (0.002) 0.026 0.002 (0.007) 0.004 (0.005) (0.002) 0.008 0.007 (0.011) (0.013) (0.015) 0.000 (0.001) 0.009 (0.003) 0.006 0.003 SELL SELL SELL BUY BUY SELL SELL BUY BUY SELL BUY BUY BUY BUY SELL SELL SELL BUY SELL BUY BUY SELL SELL SELL BUY BUY SELL SELL SELL SELL BUY BUY SELL SELL SELL SELL SELL BUY SELL BUY SELL BUY SELL BUY BUY BUY SELL - SELL BUY SELL BUY BUY BUY BUY BUY BUY BUY BUY SELL BUY BUY SELL SELL SELL SELL BUY BUY BUY SELL SELL SELL BUY BUY SELL BUY SELL SELL BUY BUY SELL SELL SELL BUY SELL BUY SELL BUY BUY BUY BUY 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
17. Technical Comments : BUY Gadang & SunCon A daily stochastics buy signal supports further rebound potential for Gadang towards the upper Bollinger band (RM1.33), while a confirmed breakout above the 3/7/17 high (RM1.37) will aim for the 123.6%FP (RM1.50) ahead. Uptrend support is from the 200-day ma (RM1.18). Bullish momentum on Suncon enhances breakout potential above the 138.2%FP (RM2.21) to target the 150%FP (RM2.32) and 161.8%FP (RM2.42) going forward. Key retracement support from the 123.6%FP (RM2.08) is reinforced by the 100-day ma (RM1.97). GADANG Upper Middle RM1.26 (+0.02) BOLLINGER BANDS RM RM 1.33 1.28 10-day 30-day RM 1.23 50-day Lower DMI Recent Signal SELL 1.29 Recent Signal SELL Signal Change SUNCON Recent Signal Signal Change RM DAILY MACD Signal Change Upper Middle Lower SIMPLE MOVING AVERAGES RM 1.26 RM 1.29 BOLLINGER BANDS RM RM RM DMI RM2.18 (+0.06) 2.18 2.07 1.97 BUY SIMPLE MOVING AVERAGES RM 2.12 RM 2.05 RM 2.05 DAILY MACD Recent Signal BUY Signal Change 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 Tuesday , August 08, 2017 FBMKLCI: 1,777.91 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 07.08.2017 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 COMPUGATES HOLDI JAG BHD PALETTE MULTIMED MPAY MALAKOFF CORP BH VIVOCOM INTERNAT HIAP TECK VENTUR AEMULUS HOLDINGS JOHAN HLDGS BHD BIOALPHA HOLDING GREEN PACKET BHD HIBISCS TA GLOBAL BHD DOLPHIN INTERNAT DIALOG GROUP BHD TRC SYNERGY BHD SEDANIA INNOVAT TENAGA NASIONAL EKOVEST BHD IFCA MSC BHD DIGI.COM BHD AYS VENTURES BHD HUBLINE BHD TALAM TRANSFORM RAYA INTERNATION SKH CONSORTIUM B BOON KOON GROUP IDEAL JACOBS MAL LEADER STEEL HLD TADMAX RESOURCES 0.04 0.15 0.08 0.27 1.04 0.14 0.39 0.65 0.33 0.25 0.37 0.41 0.34 0.25 1.94 0.75 0.35 14.18 1.11 0.39 4.80 0.57 0.06 0.06 0.20 0.12 0.51 0.51 0.60 0.41 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.03 0.12 0.06 0.22 1.01 0.12 0.36 0.50 0.25 0.23 0.33 0.40 0.29 0.18 1.88 0.69 0.28 14.09 1.04 0.37 4.65 0.50 0.06 0.04 0.15 0.11 0.42 0.45 0.55 0.35 0.03 0.14 0.07 0.26 1.04 0.14 0.38 0.63 0.30 0.24 0.35 0.41 0.31 0.24 1.92 0.73 0.32 14.17 1.11 0.39 4.79 0.55 0.06 0.05 0.18 0.12 0.51 0.50 0.58 0.39 0.04 0.15 0.08 0.30 1.06 0.15 0.41 0.76 0.34 0.25 0.37 0.42 0.34 0.29 1.96 0.77 0.35 14.24 1.18 0.41 4.93 0.60 0.06 0.06 0.21 0.13 0.59 0.55 0.61 0.44 64.47 64.97 63.25 53.51 46.90 55.13 56.28 55.27 64.74 63.43 57.28 48.89 63.14 55.63 54.68 56.46 62.38 52.97 46.07 51.22 44.57 51.80 50.56 59.51 63.04 50.08 53.70 59.64 55.99 54.09 0.03 0.14 0.07 0.28 1.03 0.14 0.39 0.69 0.30 0.24 0.36 0.41 0.32 0.25 1.93 0.73 0.33 14.18 1.12 0.39 4.79 0.57 0.06 0.05 0.18 0.12 0.53 0.51 0.59 0.40 0.03 0.14 0.07 0.25 1.04 0.13 0.38 0.59 0.28 0.24 0.35 0.41 0.32 0.21 1.92 0.73 0.31 14.15 1.14 0.38 4.86 0.57 0.06 0.05 0.18 0.12 0.48 0.47 0.59 0.39 0.03 0.13 0.07 0.24 1.08 0.13 0.36 0.55 0.26 0.24 0.35 0.42 0.32 0.22 1.92 0.71 0.32 14.13 1.16 0.38 4.91 0.58 0.06 0.04 0.17 0.12 0.46 0.41 0.58 0.40 Vol 50,909,700 36,472,000 30,696,500 30,620,200 30,569,900 22,597,400 18,575,700 15,605,900 15,385,600 14,954,000 13,570,500 12,115,200 11,143,500 9,331,700 6,396,800 6,216,500 6,094,200 6,062,700 5,706,800 4,856,300 4,485,400 4,406,500 4,343,100 4,072,000 4,031,800 3,635,000 3,609,700 3,416,900 3,279,900 2,927,000 20-day avg vol 8,338,630 12,338,160 2,695,940 23,438,640 4,687,815 26,962,540 10,401,500 11,698,570 9,678,205 3,666,640 3,761,460 6,186,805 1,790,585 7,747,890 11,005,920 3,681,320 2,457,265 8,312,900 17,444,490 10,621,210 4,216,525 3,663,670 10,410,530 6,826,850 2,888,343 3,175,915 7,124,135 6,964,040 743,480 2,185,140 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 GRAND HOOVER BHD MYETF-TR APEJ IA EONMETALL GROUP PENSONIC HLDGS SURIA CAPITAL WIDETECH MALAYSI KUB MALAYSIA BHD TONG HERR RESOUR REXIT BHD TA GLOBAL BHD CONCRETE ENGINEE PLB ENGINEER YI-LAI BHD POH HUAT RES HLD COMPUTER FORMS SIG GASES BHD BIOALPHA HOLDING PESTECH INTL BHD SOUTHERN STEEL 0.56 1.07 0.79 0.69 2.18 0.58 0.55 3.73 0.95 0.34 1.75 2.21 0.80 2.03 1.21 1.17 0.25 1.67 1.74 0.61 JCY INTERNATIONA Raw data sourced from Bloomberg 20 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 0.39 1.03 0.72 0.61 2.04 0.39 0.49 3.50 0.83 0.29 1.47 1.18 0.76 1.88 0.96 0.82 0.23 1.49 1.55 0.56 0.45 1.05 0.74 0.65 2.09 0.47 0.51 3.58 0.88 0.31 1.59 1.60 0.78 1.94 1.07 0.95 0.24 1.56 1.64 0.58 0.50 1.07 0.77 0.68 2.14 0.55 0.54 3.66 0.92 0.34 1.71 2.01 0.79 2.00 1.18 1.08 0.25 1.64 1.73 0.59 70.53 59.42 66.37 66.42 64.72 71.96 64.47 69.76 70.03 63.14 62.41 82.79 67.54 73.15 66.81 72.60 63.43 67.92 68.10 62.01 0.46 1.05 0.75 0.66 2.09 0.49 0.52 3.59 0.88 0.32 1.58 1.72 0.78 1.94 1.11 0.99 0.24 1.57 1.68 0.58 0.45 1.05 0.75 0.64 2.09 0.45 0.51 3.55 0.87 0.32 1.61 1.56 0.78 1.95 1.06 0.95 0.24 1.58 1.65 0.58 0.44 1.05 0.74 0.65 2.09 0.45 0.52 3.51 0.87 0.32 1.60 1.51 0.78 1.91 1.09 0.89 0.24 1.59 1.66 0.59 Vol 1,033,000 123,500 7,528,300 1,407,500 321,700 3,700 12,367,000 498,900 5,230,500 11,143,500 1,500 540,700 258,300 1,890,300 13,000 13,312,700 14,954,000 792,800 1,030,500 5,732,200 20-day avg vol 54,080 10,355 819,095 167,530 40,040 470 1,694,315 75,950 817,420 1,790,585 245 88,970 44,240 331,445 3,145 3,249,715 3,666,640 216,375 302,030 1,715,940 *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 PERSTIMA KESM INDUS BHD CARLSBERG BREWER ORIENTAL INTERES JF TECHNOLOGY NPC RESOURCES BH DANCOMECH HOLDIN MUDAJAYA GROUP GOLDIS BHD SALCON BHD DAGANG NEXCHANGE QUALITY CONCRETE BREM HLDG BHD KAREX BHD HALEX HOLDINGS B CREST BUILDER HO HCK CAPITAL GROU MEDIA PRIMA BHD FACB INDUS ANCOM BHD 6.04 15.00 14.82 2.26 1.90 1.85 0.51 1.11 2.71 0.45 0.52 1.07 0.90 1.48 0.83 1.04 0.95 0.81 1.25 0.70 Bollinger Band RSI Moving Average Lower Middle Upper 14-day 10-day 30-day 50-day 6.22 15.17 14.87 2.31 1.95 1.89 0.55 1.15 2.74 0.48 0.55 1.10 0.92 1.50 0.84 1.06 0.96 0.82 1.26 0.71 7.55 15.86 15.04 2.45 2.06 2.19 0.62 1.29 2.84 0.51 0.58 1.18 1.00 1.58 0.88 1.09 1.08 0.88 1.31 0.78 8.87 16.54 15.21 2.60 2.17 2.48 0.68 1.43 2.95 0.55 0.61 1.26 1.07 1.66 0.91 1.12 1.20 0.95 1.37 0.85 14.74 33.05 38.18 34.32 42.64 29.54 19.90 23.08 19.98 14.70 23.42 40.64 35.08 28.73 26.41 39.46 33.05 17.18 36.02 33.00 7.21 15.60 14.99 2.42 2.06 2.12 0.60 1.24 2.80 0.51 0.57 1.16 0.98 1.60 0.86 1.08 1.07 0.87 1.32 0.76 7.63 15.80 15.03 2.46 2.03 2.22 0.64 1.32 2.86 0.53 0.59 1.19 0.99 1.61 0.89 1.09 1.07 0.90 1.31 0.85 7.66 15.28 14.91 2.52 1.86 2.24 0.66 1.39 2.90 0.55 0.58 1.19 0.98 1.71 0.93 1.08 1.06 0.94 1.28 0.84 Vol 128,400 89,500 9,600 2,000 2,082,500 13,500 1,870,700 955,000 8,000 8,189,200 43,715,800 2,000 1,144,600 4,123,100 348,700 382,000 274,100 294,200 16,000 3,147,700 20-day avg vol 75,275 37,385 28,870 1,125 533,170 1,620 368,360 426,135 14,580 1,299,240 17,411,160 38,570 1,119,905 1,670,340 127,440 255,490 75,285 743,090 37,560 4,397,445 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. Tuesday , 08 August, 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