Bursa Malaysia Daily Market Report - 9 January

Transcription

1. Tuesday , 09 January, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only N ew s 1. D ai l y M arke t C om men t a ry 2. D ai l y B ri ef Fu nd a me n tal Rep o r ts 1 . S im e D a r b y P ro p e rt y Bh d : S it e V is i t t o C it y o f E lm in a Te ch n ic al R ep o rt s 1. D ai l y Te ch n ic a l St o ck Pi cks (L o ca l) 2. D ai l y St o ck S cr een 3. D ai l y For ei gn T ech n i c al St o ck P i cks (H K ) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
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Daily Market Commentary Tuesday , 09 January 2018 For Internal Circulation Only TA Research, e-mail : taresearch@ta.com.my KLSE Market Statistics (08.01.2018) Volume (mil) +/-chg (RMmn) Main Market 4,814.7 978.5 4,238.0 Warrants 964.9 264.4 112.0 ACE Market 1,171.0 -116.0 234.1 Bond 12.3 2.4 3.5 ETF 1.6 -0.4 1.9 LEAP 0.0 (0.0) 0.0 Total 6,964.6 4,589.5 Off Market 281.1 192.4 288.1 Major Indices Index +/- chg Malaysia FBMKLCI FBMEMAS FBMSCAP January Futures Other Markets DOW JONES NASDAQ (US) FTSE (UK) NIKKEI (JAPAN) KOSPI (KOREA) HANG SENG (HK) FSSTI (S'PORE) SET (BANGKOK) JCI (JAKARTA) SHANGHAI SHENZHEN AUSTRALIA Review & Outlook Value Value/ +/-chg Volume 627.1 0.88 20.5 0.12 -2.0 0.20 1.0 0.29 -0.46 1.16 -0.01 0.41 0.66 -194.8 1.02 Up Down 516 207 253 64 74 39 6 2 3 0 1 0 853 312 % chg % YTD chg 1,832.15 13,315.51 18,082.88 1,836.00 14.18 150.10 362.32 13.00 0.78 1.14 2.04 0.71 1.97 2.88 6.05 2.86 25,283.00 7,157.39 7,696.51 23,714.53 2,513.28 30,899.53 3,512.18 1,792.81 6,385.40 3,409.48 1,945.98 6,130.37 -12.87 20.83 -27.71 0.00 15.76 84.89 22.73 -2.64 31.67 17.73 4.18 8.02 -0.05 0.29 -0.36 0.00 0.63 0.28 0.65 -0.15 0.50 0.52 0.22 0.13 2.28 3.68 0.11 4.17 1.86 3.28 3.21 2.23 0.47 3.09 2.46 1.08 (mn) MCT 230.1 @ PTRANS 20.0 @ SKPRES 7.5 @ CIMB 7.3 @ HUBLINE 3.0 @ EKA 2.8 @ MBWORLD 2.0 @ CYPARK 1.8 @ SGB-PA 1.3 @ D&O 1.0 @ (RM) 0.88 0.28 2.25 6.72 0.10 0.08 1.95 2.68 0.40 0.77 Counter MAYBANK TENAGA PBBANK CIMB IHH PETGAS HLBANK MISC IOICORP KLK Mkt Cap. Chg (RM’mn) (RM) 106,162 88,956 80,396 62,918 48,116 37,992 36,003 33,434 29,157 26,752 0.05 0.28 0.04 0.12 0.02 0.84 0.40 0.04 0.04 0.24 Important Dates XDL - 1:1 Bonus Issue - BI of up to 894.2m shares. 1 bonus share for every 1 existing share held. Ex-Date: 08/01/2018. Entitlement Date: 10/01/2018. LISTING ON: 11/01/2018. MENANG - 4:5 Bonus Issue - BI of up to 320.5m shares. 4 bonus shares for every 5 existing shares held. Entitlement Date: 09/01/2018. LISTING ON: 10/01/2018. Due to extreme overbought momentum, blue chips and the index should slip into profit-taking correction mode, and buying momentum switch to lower liners and small caps on rotational plays in the oil & gas, construction and property sectors. Next key resistance level for the index is 1,867, the April 2017 peak, followed by the all-time high of 1,896 on July 2014. Immediate uptrend supports upon a profit-taking correction are at 1,820 and 1,790, the rising 10-day moving average. Binapuri need to breakout above the 200-day ma (39sen) on strong buying momentum to enable challenge of the 38.2%FR (40sen), 50%FR (42sen) and 61.8%FR (44sen) ahead, while key chart supports are at 34sen and the 14/8/17 low (32.5sen). Eco World needs convincing breakout above the 50%FR (RM1.46) to target the 61.8%FR (RM1.52) and 76.4%FR (RM1.60) going forward, while the lower Bollinger band (RM1.33) and 23.6%FR (RM1.32) should cushion downside risk. News Bites Top 10 KLCI Movers Based on Mkt Cap. Off Market Strong gains in key oil & gas, banking and utility heavyweights on Monday propped up the blue-chip benchmark to the highest level since April 2015, helped by spillover optimism from gains in key global markets to record highs. The KLCI rose 14.18 points to settle at the day's high of 1,832.15, off an early low of 1,813.03, as gainers swarmed losers 853 to 312 on very strong turnover totaling 6.96bn shares worth RM4.59bn. Vol. (mn) 19.24 14.04 7.69 29.31 5.53 1.02 0.84 2.58 3.44 1.25 • AMMB Holdings Bhd has launched a MSS for its employees in a bid to improve efficiency and get leaner. • AirAsia Group Bhd, a holding company established to own and manage the budget airline's Southeast Asian units and to assume the listing status of AirAsia Bhd, may relist its Malaysian unit to unlock the value of the asset in the future. • Proton Holdings Bhd's sales for 2017 was slightly lower at 70,991 units from the 72,291 sold the previous year, due to lower taxi orders. • Malakoff Corporation Berhad entered into a MoU with Touch Meccanica Sdn Bhd to jointly secure, develop and implement several energy projects in the State of Pahang Darul Makmur. • Yong Tai Bhd expects Impression Series Encore Melaka theatre to contribute significantly to its revenue for FY19 and at least RM60mn in net profit per annum when fully operational. • SCH Group Berhad had proposed a private placement of approximately 25% of its issued shares, potentially raising gross proceeds of RM19.1mn. • Touch 'n Go Sdn. Bhd. announced that it had obtained approval from Bank Negara Malaysia to operate and offer mobile e-wallet services in Malaysia via TNG Digital Sdn. Bhd. • Westports Holdings Berhad's CEO, Mr Ruben Emir Gnanalingam Bin Abdullah, has been redesignated as the group's new Managing Director. • Construction services firm GDB Holdings Bhd has received the nod from Bursa Malaysia Securities Bhd to list on the ACE Market. • MRCB-Quill REIT announced the proposed disposal of Quill Building 8 - DHL XPJ, a single storey detached warehouse in Glenmarie for RM28.0mn. • Ajiya Berhad signed a MoU with Ascension Technology Sdn Bhd to promote affordable housing in Malaysia by using innovative construction technique. • MESB Berhad entered into a license agreement with Crocodile International Sdn Bhd to use the Trade Mark of "CROCODILE" in Malaysia. • NWP Holdings Berhad has been suspended, after failing to submit its 2017 annual report within the stipulated timeframe • The Dun and Bradstreet Malaysia's Business Optimism Index showed sentiment among Malaysian companies climbed to 7.25% points in 1Q18 from 5.52% points in 4Q17. • Two Federal Reserve officials said Monday the U.S. central bank should consider changes in its inflation-targeting framework to create more ammunition to respond to future downturns. • Economic sentiment indicator in the euro zone rose more than expected to 116 points in December and the business climate indicator hit new highs but Inflation eased to 1.4% from 1.5% in November. Exchange Rate USD/MYR 4.0054 0.0052 USD/JPY 113.12 -0.1200 EUR/USD 1.197 -0.0083 Commodities Futures Palm Oil (RM/mt) 2,616.00 35.00 Crude Oil ($/Barrel) 61.90 0.31 Gold ($/tr.oz.) 1,321.20 0.90 Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan, Head of Research MENARA TA ONE, 22 JALAN for TA SECURITIES HOLDINGS BERHAD (14948-M) A PARTICIPATING ORGANISATION OF BURSA MALAYSIA SECURITIES BHD P RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL : 603 - 2072 1277. FAX : 603 - 2032 5048 www.ta.com.my
3. 9-Jan-18 Technical Comments : BUY Binapuri & Eco World Binapuri need to breakout above the 200-day ma (39sen) on strong buying momentum to enable challenge of the 38.2%FR (40sen), 50%FR (42sen) and 61.8%FR (44sen) ahead, while key chart supports are at 34sen and the 14/8/17 low (32.5sen). Eco World needs convincing breakout above the 50%FR (RM1.46) to target the 61.8%FR (RM1.52) and 76.4%FR (RM1.60) going forward, while the lower Bollinger band (RM1.33) and 23.6%FR (RM1.32) should cushion downside risk. BINAPURI RM0.37 (+0.01) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 0.36 0.34 0.33 10-day 30-day 50-day RM RM RM DAILY MACD BUY Recent Signal Signal Change DMI Recent Signal Signal Change ECO WORLD RM RM RM SIMPLE MOVING AVERAGES 1.50 1.42 1.33 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change BUY RM1.40 (+0.01) BOLLINGER BANDS Upper Middle Lower 0.35 0.34 0.35 RM RM RM DAILY MACD 1.39 1.44 1.47 BUY BUY Page 2 of 3
4. Tuesday , January 09, 2018 FBMKLCI: 1,832.15 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks Chartist: Stephen Soo Tel: +603-2167-9607 stsoo@ta.com.my www.taonline.com.my M a r k e t V i e w Rally to Stall as Momentum Switch to Small Caps Strong gains in key oil & gas, banking and utility heavyweights on Monday propped up the bluechip benchmark to the highest level since April 2015, helped by spillover optimism from gains in key global markets to record highs. The KLCI rose 14.18 points to settle at the day’s high of 1,832.15, off an early low of 1,813.03, as gainers swarmed losers 853 to 312 on very strong turnover totaling 6.96bn shares worth RM4.59bn. Key Resistance at 1,867, Then 1,896 Due to extreme overbought momentum, blue chips and the index should slip into profittaking correction mode, and buying momentum switch to lower liners and small caps on rotational plays in the oil & gas, construction and property sectors. Next key resistance level for the index is 1,867, the April 2017 peak, followed by the all-time high of 1,896 on July 2014. Immediate uptrend supports upon a profit-taking correction are at 1,820 and 1,790, the rising 10-day moving average. BUY Binapuri & Eco World Binapuri need to breakout above the 200-day ma (39sen) on strong buying momentum to enable challenge of the 38.2%FR (40sen), 50%FR (42sen) and 61.8%FR (44sen) ahead, while key chart supports are at 34sen and the 14/8/17 low (32.5sen). Eco World needs convincing breakout above the 50%FR (RM1.46) to target the 61.8%FR (RM1.52) and 76.4%FR (RM1.60) going forward, while the lower Bollinger band (RM1.33) and 23.6%FR (RM1.32) should cushion downside risk. Asian Markets Extend Gains on Global Growth Optimism Asian equities overcame early weakness in some markets to trade broadly higher Monday, ahead of the start of the region’s earnings season this week, with investors betting that the outlook for economic growth and profits is strong enough to support record-high stock prices. In stateside, the S&P 500 Index posted its best week since December 2016 as investors looked past weaker-than-forecast jobs figures, speculating that Republican tax cuts will lead to higher company profits. Inflation reports in the U.S. and China are due this week, and a host of addresses from U.S. policymakers may provide detail on the pace of monetary policy tightening in America. The quarterly U.S. earnings season also kicks off this week with the Street expecting solid growth of around 10 percent. Australia’s S&P/ASX 200 hit a new 10-year high Monday. The index advanced 0.13 percent, helped by gains in the country’s big banks. South Korea's Kospi rose 0.63 percent after earlier slipping below the flat line. Retailers, automakers and trading houses rose in the session. China’s main share indexes also rose, climbing for a seventh straight session and boosted by robust gains for real estate firms as major developers reported stellar 2017 sales. The indexes closed at their highest in six weeks. The Shanghai Composite index was up 18.25 points or 0.54 percent at 3,410.00. Japanese markets are closed for Coming of Age Day. Page 1 of 7
5. 9-Jan-18 S &P 500 Extends Record Run The S&P 500 inched higher Monday, extending its winning streak for the New Year, as investors remained optimistic on the U.S. economy. But Dow industrials struggled, finishing marginally lower and breaking a four-day advance, as healthcare and financial sectors weighed on the index. Many investors and analysts believe the rally will continue, especially if the economy continues to grow at what they describe as an ideal pace, fast enough to support corporate profits but slow enough to keep the Federal Reserve from withdrawing stimulus too quickly. Attention in the United States now turns to the quarterly earnings season, with investors expected to focus on what U.S. companies will say about the recently approved tax overhaul and corporate tax cuts. Results from JPMorgan Chase are due Friday. The Dow Jones Industrial Average fell 12.94 points, or 0.05 percent, to 25,282.93, the S&P 500 gained 4.55 points, or 0.17 percent, to 2,747.7 and the Nasdaq Composite added 20.83 points, or 0.29 percent, to 7,157.39. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, January 09, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 2 of 7
6. 9-Jan-18 N e w s I n B r i e f Corporate AMMB Holdings Bhd has launched a MSS for its employees in a bid to improve efficiency and get leaner . Eligible, confirmed employees of Ambank Bhd, AmInvestment Bank Bhd and AmBank Islamic Bhd could apply for the MSS over a two week period, starting yesterday until 19th January 2018. (The Edge) Comments: In tandem with efforts to tightly manage costs and lower the group’s cost-to-income (CTI) ratio from 57% currently to its targeted 55%, we are not overly surprised by this announcement. Industry’s average CTI is around 50%. No change to our earnings estimates for now, pending more guidance from management, we maintain our BUY recommendation on AMMB with a TP of RM5.10. AirAsia Group Bhd, a holding company established to own and manage the budget airline’s Southeast Asian units and to assume the listing status of AirAsia Bhd, may relist its Malaysian unit to unlock the value of the asset in the future. (The Edge) Proton Holdings Bhd’s sales for 2017 was slightly lower at 70,991 units from the 72,291 sold the previous year, due to lower taxi orders. The Saga, Persona and Ertiga made up 80% of total sales. Its bestselling car, the Saga registered steady sales at above 30,000 units in 2017. (Bernama) Malakoff Corporation Berhad entered into a MoU with Touch Meccanica Sdn Bhd to jointly secure, develop and implement several energy projects in the State of Pahang Darul Makmur, particularly a large scale solar photovoltaic and small hydro power projects. (Bursa) Yong Tai Bhd expects Impression Series Encore Melaka theatre to contribute significantly to its revenue for FY19 and at least RM60mn in net profit per annum when fully operational. Encore Melaka, nestled on 6.1ha within the Impression City, is targeted to be launched by the 2Q2018. (Bernama) SCH Group Berhad had proposed a private placement of approximately 25% of its issued shares, potentially raising gross proceeds of RM19.1mn. Proceeds will be utilised for future acquisitions, repayment of bank borrowings and working capital requirements. (Bursa) Touch ‘n Go Sdn. Bhd. announced that it had obtained approval from Bank Negara Malaysia to operate and offer mobile e-wallet services in Malaysia via TNG Digital Sdn. Bhd., its JV company with the Ant Financial Group. The new mobile e-wallet will facilitate payments in a cashless and cardless environment by leveraging on Ant Financial’s Alipay technology platform. (Bursa) Westports Holdings Berhad’s CEO, Mr Ruben Emir Gnanalingam Bin Abdullah, has been redesignated as the group’s new Managing Director. (Bursa) Construction services firm GDB Holdings Bhd has received the nod from Bursa Malaysia Securities Bhd to list on the ACE Market. It targets to list in the 1Q2018. Completed construction works in Kuala Lumpur include KL Eco City (Parcel B) and One Central Park. It is currently working on several high value projects including Westside III, Etiqa Office Tower, AIRA Residence and Menara Hap Seng 3. (The Edge) MRCB-Quill REIT announced the proposed disposal of Quill Building 8 – DHL XPJ, a single storey detached warehouse in Glenmarie for RM28.0mn. The disposable price is believed to be favourable, with proceeds to be used for the repayment of borrowings, asset enhancement initiatives and investments in other assets. (Bursa) Page 3 of 7
7. 9-Jan-18 Ajiya Berhad signed a MoU with Ascension Technology Sdn Bhd to promote affordable housing in Malaysia by using innovative construction technique . Ascension desires to purchase the Ajiya Green Integrated Building Solutions (AGIBS) housing components/materials and to be appointed as the installer of AGIBS for projects undertaken by Ascension. (Bursa) MESB Berhad entered into a license agreement with Crocodile International Sdn Bhd to use the Trade Mark of “CROCODILE” in Malaysia. This relates to the design, manufacture, advertisement, distribution, sales and promotion of Crocodile’ Men’s Apparel and Innerwear products. (Bursa) NWP Holdings Berhad has been suspended, after failing to submit its 2017 annual report within the stipulated timeframe. (Bursa) Page 4 of 7
8. 9-Jan-18 N e w s I n B r i e f Economy Asia Malaysian Business Sentiment Improves in 1Q18 Business sentiment among Malaysian companies improved further in the first quarter 2018 (1Q18), reaching a new peak, as growth momentum continued to pick up, based on the Dun and Bradstreet (D and B) Malaysia's Business Optimism Index (BOI) survey. D and B is one of the world leading business information providers and the survey was the 20th D and B BOI study being released in Malaysia, to measure business confidence in the economy. The survey revealed that overall BOI climbed to 7.25 percentage points in 1Q18 from 5.52 percentage points in 4Q17. On a year-on-year basis, D and B said the BOI rose from 1.65 percentage points in 1Q17 to 7.25 percentage points in 1Q18. The survey disclosed that four business indicators had risen upwards on a quarter-on-quarter basis in 1Q18, while five indicators improved on a y-o-y basis. It said both the services and transportation sectors were most optimistic, with all six indicators in positive territory and the construction sector the least optimistic, with only two indicators in the expansionary zone for 1Q18. There was a visible increase in firms expecting investments to increase from eight per cent in 2017 to 18% in 2018. Meanwhile, the proportion of firms expecting investments to decrease, fell from 21% in 2017 to 15% for 2018. Based on the survey, firms had identified machinery and equipment to be the most important area of investments for 2018 at 40%, followed by Information Technology (28%) and skills upgrading of employees (12%). (The Star) Australia Construction Index Slides in December - AiG The construction sector in Australia continued to expand in December, although at a much slower rate, the latest survey from the Australian Industry Group revealed with a Performance of Construction Index score of 52.8. That's down sharply from 57.5 in November, although it remains above the boom-or-bust line of 50 that separates expansion from contraction for the 11th consecutive month. Engineering construction and house building remained the strongest performing areas of construction activity in December. However, the pace of activity growth in both sectors was well down on the solid increases in November. The rate of expansion in commercial construction was also slower in the month. (RTT News) United States U.S. Consumer Credit Posts Largest Gain in 16 Years U.S. consumer borrowing posted the largest monthly gain in 16 years, buoyed by increased consumer confidence in the economy. Outstanding consumer credit rose by $27.95 billion in November from the prior month, the biggest increase since November 2001, according to new data from the Federal Reserve. This measure of non-real-estate debt climbed at an 8.83% seasonally adjusted annual rate, the fastest pace in more than two years, the Fed said. The November increase topped expectations of economists surveyed by The Wall Street Journal. Total outstanding credit had increased a revised $20.53 billion in October. Revolving credit outstanding, mostly credit cards, increased at a 13.3% annual pace in November. This category of debt grew by $11.19 billion, the largest increase in a year. The sharp rise in November borrowing can partially be attributed to Americans’ rising consumer confidence. Though it dipped in December, the Conference Board’s measure of consumer confidence hit a 17-year high in November. Nonrevolving credit outstanding, mainly student and auto loans, rose at a 7.2% annual pace in November. This measure increased $16.8 billion. Mr. Connelly said the increase in this debt was underpinned by a rise in auto sales in the fall, as Americans rushed to replace vehicles destroyed by late-summer hurricanes. Household debt totaled $12.955 trillion in the third quarter, up 0.9% from the spring, the Federal Reserve Bank of New York said in November. That was the most on record, though the figure wasn’t adjusted for inflation. (The Wall Street Journal) Page 5 of 7
9. 9-Jan-18 Fed Officials Encourage Reassessment of Inflation Target Two Federal Reserve officials said Monday the U .S. central bank should consider changes in its inflation-targeting framework to create more ammunition to respond to future downturns. The Fed established a formal 2% inflation target six years ago, but in recent months some officials and other economists, including former Fed Chairman Ben Bernanke, have said the central bank should revisit the framework because interest rates now appear likely to remain much lower for longer. As a result, the Fed could find itself with less room to stimulate economic growth during the next downturn. The idea of revisiting the Fed’s inflation target also has gained new attention because inflation has confounded officials’ forecasts for years by consistently falling below the 2% target. Such targets can be less effective if officials are chronically unable to hit them. Among different ideas, some have urged the central bank to instead target a given level of prices, such as a 2% annual increase. San Francisco Fed President John Williams argued in favor of a price-level target during a presentation at the Brookings Institution in Washington. Mr. Williams outlined support for such a tool last November. (The Wall Street Journal) Europe and Uni ted Kingdom Germany's Factory Orders Fall More-than Forecast Germany's factory orders declined more than expected in November, data from Destatis revealed. Factory orders decreased 0.4% month-on-month, reversing a revised 0.7% rise in October. Orders were forecast to drop 0.2%. Excluding major orders in manufacturing, new orders grew 1.8% from the previous month. Domestic and foreign orders decreased 0.4% and 0.5%, respectively. New orders from the euro area climbed 0.7%, while that from other countries decreased 1.2%. Data showed that manufacturing turnover increased 4.6% on a monthly basis in November, in contrast to a 2.1% decrease in October. (RTT News) Eurozone Confidence at Multi-Year High, but Inflation Expectations Fall Economic sentiment in the euro zone rose more than expected in December and the business climate indicator hit new highs, European Commission data showed on Monday, underlining robust economic growth in the single currency area. The Commission’s economic sentiment indicator rose to 116.0 points in December from 114.6 in November and well above the 114.8 point expectation in a Reuters poll. It was the highest value of the indicator since October 2000. The record was the 119.0 set in May 2000. Separately, the Commission’s business climate indicator, which points to the phase of the business cycle, reached the highest value since measurements began in 1985, hitting 1.66, up from 1.49 in November. Sentiment in the 19 countries sharing the euro was buoyed by a rise in optimism across all sectors -- in industry, services, retail trade, construction as well as services. But the upbeat mood, while pushing up producer price expectations among manufacturers, has failed to increase consumer inflation expectations which are key to boost inflation to the European Central Bank target of below, but close to 2%. Inflation eased to 1.4% last month from 1.5% in November. The monthly Commission survey showed that consumers’ inflation expectation for the next 12 months fell to a four-month low o f13.6 points in December from 16.0 in November. (Reuters) U.K. House Prices Drop in December as Economy Loses Steam U.K. house prices fell for the first time in six months in December amid economic uncertainty and a squeeze on incomes. Prices slid 0.6% on the month, the first decline since June, mortgage lender Halifax said on Monday. Annual price gains slipped to 2.7% in the last three months of the year, from 3.9% previously. In 2017, “house price growth slowed, whilst building activity, completed sales and mortgage approvals for house purchase all remained flat,” said Russell Galley, managing director at Halifax Community Bank. “This has been driven by a squeeze on real-wage growth and continuing uncertainty over the economy.” The U.K. housing market cooled last year as economic growth lost momentum, with London a particular weak spot. A report from Nationwide Building Society last week forecast prices will barely gain this year, while Halifax has a similar outlook, predicting a dearth of supply will prompt annual growth in the range of 0% to 3fperce%. (Bloomberg) Page 6 of 7
10. 9-Jan-18 Share Buy-Back : 08 January 2018 Company KPJ LIENHOE SCGM UNIMECH Bought Back Price (RM) Hi/Lo (RM) 50,000 240,000 63,600 15,100 0.99/0.97 0.35/0.345 2.46/2.33 1.05/1.04 0.99/0.97 0.37/0.34 2.47/2.30 1.05/1.04 Total Treasury Shares 16,887,000 19,785,500 673,500 6,431,910 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 7 of 7
11. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD 08-Jan-18 AUTOMOBILE BAUTO 2.32 2.50 Buy 2,679 0.73 14.3 19.9 16.2 11.6 5.0 5.2 2.35 -1.3 1.84 26.1 MBMR 2.40 2.32 Hold 938 0.80 23.2 23.9 10.4 10.1 1.9 2.0 2.60 -7.7 2.01 19.4 5.5 9.1 PECCA 1.55 1.69 Buy 286 na 11.1 12.5 13.9 12.4 3.6 3.9 1.70 -8.8 1.28 21.1 0.0 SIME 2.79 1.97 Hold 18,974 1.56 12.0 12.7 23.3 22.0 1.1 1.1 2.96 -5.7 1.92 45.4 26.2 UMW 6.27 4.37 Sell 7,325 1.38 19.2 35.3 32.6 17.8 1.6 2.9 6.40 -2.0 4.23 48.2 20.6 BANKS & FINANCIAL SERVICES ABMB 4.14 4.20 Buy 6,409 1.36 30.6 35.6 13.5 11.6 3.9 3.9 4.49 -7.8 3.62 14.4 1.5 AFFIN 2.54 2.50 Hold 4,935 0.88 24.2 28.1 10.5 9.0 3.1 3.1 2.98 -14.6 2.22 14.4 10.0 AMBANK 4.68 5.10 Buy 14,106 1.29 48.6 52.0 9.6 9.0 3.8 3.8 5.70 -17.9 4.06 15.3 6.1 CIMB 6.82 7.00 Buy 62,918 1.47 50.9 56.0 13.4 12.2 3.7 4.1 7.08 -3.7 4.71 44.8 4.3 HLBANK 17.60 17.50 Buy 36,003 0.68 114.2 120.9 15.4 14.6 2.6 2.6 17.80 -1.1 13.06 34.8 3.5 MAYBANK 9.85 9.70 Hold 106,162 1.05 70.9 77.7 13.9 12.7 5.1 5.1 9.86 -0.1 8.05 22.4 0.5 PBBANK 20.82 23.60 Buy 80,396 0.63 142.4 149.8 14.6 13.9 2.8 2.9 21.08 -1.2 19.66 5.9 0.2 RHBBANK 5.19 5.20 Hold 20,812 1.62 52.2 53.8 9.9 9.6 2.9 2.9 5.59 -7.2 4.71 10.2 3.8 BURSA 10.76 11.10 Buy 5,784 0.93 39.0 41.5 27.6 26.0 3.2 3.2 10.98 -2.0 8.08 33.2 6.3 Note: BURSA proposed bonus issue of shares on the basis of 1 for 2. Ex-Target price RM7.04 CONSTRUCTION GADANG 1.17 1.73 Buy 771 0.98 14.3 18.2 8.2 6.4 2.6 2.6 1.37 -14.6 1.01 15.8 5.4 GAMUDA 4.98 6.00 Buy 12,229 0.85 34.5 35.7 14.4 14.0 2.4 2.4 5.52 -9.8 4.58 8.7 0.4 IJM 3.01 2.89 Sell 10,921 0.87 13.7 18.2 21.9 16.6 3.2 3.2 3.61 -16.6 2.71 11.1 -1.3 PESONA 0.50 0.55 Buy 344 0.86 5.8 4.8 8.6 10.4 3.0 3.0 0.74 -32.7 0.44 13.8 10.0 3.5 SENDAI 0.90 0.58 Sell 699 1.23 9.6 9.0 9.4 10.0 1.1 1.1 1.39 -35.6 0.51 77.2 SUNCON 2.52 2.65 Buy 3,256 0.51 14.7 16.4 17.1 15.3 2.2 2.4 2.55 -1.2 1.67 50.9 0.4 WCT 1.83 1.64 Hold 2,575 1.06 12.6 11.2 14.5 16.4 1.6 1.6 2.48 -26.1 1.46 25.3 13.0 LITRAK 5.55 6.26 Hold 2,929 0.32 45.6 47.1 12.2 11.8 4.5 4.5 6.15 -9.8 5.40 2.8 0.0 ANNJOO 3.80 4.40 Buy 1,958 1.29 45.3 49.2 8.4 7.7 5.8 6.8 3.98 -4.5 2.27 67.4 -1.6 CHINHIN 1.23 1.49 Buy 684 1.13 12.4 12.0 9.9 10.2 4.1 4.9 1.49 -17.4 0.86 43.0 1.7 ENGTEX 1.13 1.38 Buy 481 0.70 14.2 16.1 8.0 7.0 3.7 4.8 1.52 -25.7 1.07 5.6 2.7 CARLSBG 15.48 18.06 Buy 4,762 0.74 86.2 88.7 17.9 17.4 5.5 5.7 16.00 -3.3 13.90 11.4 1.2 HEIM 19.08 19.14 Buy 5,764 0.43 84.0 88.3 22.7 21.6 4.0 4.2 19.58 -2.6 15.78 20.9 1.0 AEON 1.70 1.97 Sell 2,387 0.39 6.7 7.7 25.4 22.1 2.4 2.6 2.70 -37.0 1.64 3.7 -3.4 AMWAY 7.56 8.18 Buy 1,243 0.39 43.9 45.2 17.2 16.7 5.0 5.3 8.18 -7.6 7.04 7.4 2.4 F&N 28.38 28.55 Hold 10,402 0.21 155.7 182.7 18.2 15.5 2.1 2.3 28.40 -0.1 22.64 25.4 5.1 Building Materials CONSUMER Brewery Retail HUPSENG 1.14 1.25 Hold 912 0.43 5.4 5.6 21.0 20.5 3.9 4.4 1.28 -10.9 1.08 5.6 4.6 JOHOTIN 1.26 1.70 Buy 391 0.72 12.5 12.6 10.1 10.0 4.0 4.3 1.76 -28.4 1.16 8.6 4.1 NESTLE 103.40 120.50 Buy 24,247 0.40 330.1 373.8 31.3 27.7 2.9 3.2 103.80 -0.4 74.12 39.5 0.2 PADINI 5.35 4.67 Sell 3,520 0.86 27.0 30.0 19.8 17.8 2.3 2.4 5.50 -2.7 2.26 136.7 1.3 POHUAT 1.66 2.37 Buy 365 0.56 25.3 25.5 6.6 6.5 4.8 4.8 2.07 -19.7 1.62 2.5 -7.3 QL 4.60 3.26 Sell 7,463 0.42 12.8 14.7 35.9 31.2 1.0 1.0 4.63 -0.6 3.26 41.3 5.7 SIGN 0.76 0.92 Buy 174 0.94 6.9 9.2 10.9 8.3 3.3 4.6 1.07 -29.0 0.69 10.1 7.8 37.52 52.08 Buy 10,713 1.41 187.4 175.4 20.0 21.4 5.3 5.3 51.04 -26.5 34.06 10.2 -6.2 GENTING 9.50 11.53 Buy 36,342 1.57 54.4 59.8 17.5 15.9 1.7 1.7 10.00 -5.0 7.99 19.0 3.3 GENM 5.78 6.51 Buy 32,764 1.58 27.0 30.6 21.4 18.9 1.6 1.7 6.38 -9.4 4.63 24.9 2.7 2.32 3.34 Buy 3,125 0.81 21.5 26.0 10.8 8.9 6.9 7.8 3.00 -22.7 2.23 4.0 3.6 CCMDBIO 2.80 2.70 Buy 781 0.86 15.0 16.1 18.6 17.4 3.5 3.7 2.80 0.0 1.90 47.4 10.7 IHH 5.84 6.40 Buy 48,116 0.74 11.9 15.0 49.2 39.0 0.5 0.6 6.45 -9.5 5.42 7.7 -0.3 KPJ 0.97 1.12 Buy 4,137 0.48 3.8 4.2 25.6 23.0 2.2 2.4 1.14 -14.9 0.90 7.8 0.0 HARTA 10.78 7.30 Sell 17,818 0.87 25.8 30.5 41.8 35.3 1.1 1.3 11.40 -5.4 4.53 138.0 0.9 KOSSAN 8.65 8.80 Buy 5,531 0.09 38.3 43.0 22.6 20.1 2.2 2.5 8.70 -0.6 5.62 53.9 6.7 SUPERMX 2.08 1.80 Sell 1,364 0.46 15.3 17.9 13.6 11.6 2.5 2.9 2.16 -3.7 1.69 23.1 4.0 TOPGLOV 9.16 7.00 Sell 11,497 0.09 33.7 36.4 27.2 25.1 1.8 2.0 9.25 -1.0 4.56 100.9 14.6 KAREX 1.30 1.00 Sell 1,303 0.66 2.8 5.2 47.0 25.0 0.5 1.0 2.52 -48.4 1.20 8.3 0.0 SCIENTX 9.25 9.84 Buy 4,474 0.56 68.2 74.9 13.6 12.3 2.3 2.8 9.85 -6.1 6.69 38.3 6.8 SKPRES 2.35 2.20 Hold 2,938 0.67 10.4 14.8 22.6 15.9 2.2 3.1 2.35 0.0 1.24 89.5 3.1 ASTRO 2.78 3.10 Buy 14,495 1.07 14.0 13.7 19.9 20.3 4.7 4.9 2.94 -5.4 2.45 13.5 4.9 MEDIA PRIMA 0.78 0.45 Sell 865 1.14 -3.8 -1.7 na na 0.0 0.0 1.28 -39.1 0.58 34.5 2.6 STAR 1.53 1.25 Sell 1,129 1.10 6.7 6.7 22.8 22.8 7.8 7.8 2.22 -31.0 1.31 16.8 -7.3 Tobacco BAT GAMING Casino NFO BJTOTO HEALTHCARE Hospitals/ Pharmaceutical Rubber Gloves INDUSTRIAL MEDIA
12. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price Target Price (RM) (RM) Recom Market Cap. (RMm) BETA EPS (sen) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52weeks 52weeks % Chg High Price % Chg Low Price % Chg YTD OIL & GAS DNEX 0.56 0.72 Buy 974 1.37 4.2 4.5 13.2 12.3 1.8 1.8 0.69 -19.6 0.27 109.4 LCTITAN 5.10 6.66 Buy 11,592 na 63.4 68.2 8.0 7.5 4.9 5.3 6.53 -21.9 4.14 23.2 14.4 8.5 MHB 0.95 0.78 Sell 1,512 1.82 -0.5 0.3 na 278.4 0.0 0.0 1.16 -18.5 0.63 51.2 14.5 MISC 7.49 6.56 Sell 33,434 1.09 46.8 52.3 16.0 14.3 4.0 4.0 7.90 -5.2 6.89 8.7 0.9 PANTECH 0.66 0.69 Sell 491 1.13 6.1 6.8 10.8 9.6 4.2 4.7 0.74 -10.8 0.45 46.7 2.3 PCHEM 8.15 8.05 Hold 65,200 1.03 49.8 52.6 16.4 15.5 2.7 2.8 8.27 -1.5 6.80 19.9 5.8 SAPNRG 0.98 1.25 Buy 5,842 2.44 -6.5 -4.9 na na 0.0 0.0 2.10 -53.6 0.67 46.6 37.3 SERBADK 3.49 3.40 Hold 4,659 na 25.7 27.8 13.6 12.5 2.2 2.4 3.60 -3.1 1.51 131.1 7.7 UMWOG 0.46 0.51 Buy 3,738 1.90 0.4 1.2 112.6 36.7 0.0 0.0 0.91 -50.2 0.27 68.5 49.2 UZMA 1.49 1.56 Hold 477 0.99 13.2 14.4 11.3 10.3 0.0 0.0 1.98 -24.7 1.26 18.3 16.4 FGV 2.00 2.01 Hold 7,296 1.75 3.7 4.5 54.0 44.0 2.5 2.5 2.18 -8.3 1.51 32.5 18.3 IJMPLNT 2.69 2.69 Sell 2,369 0.19 9.1 12.5 29.5 21.5 3.0 3.3 3.60 -25.3 2.67 0.7 -1.8 IOICORP 4.64 4.12 Sell 29,157 1.15 21.0 21.8 22.0 21.2 3.4 3.7 4.81 -3.5 4.31 7.7 2.2 KFIMA 1.64 1.89 Buy 463 0.56 13.3 14.5 12.3 11.3 5.5 5.5 1.96 -16.3 1.56 5.1 4.5 KLK 25.12 26.18 Hold 26,752 0.81 120.7 126.3 20.8 19.9 2.4 2.5 25.50 -1.5 23.00 9.2 0.5 SIMEPLT 5.61 6.25 Buy 38,153 na 21.0 22.1 26.7 25.4 2.5 2.7 6.00 -6.5 4.58 22.5 -6.5 TSH 1.66 2.10 Buy 2,292 0.71 9.3 9.6 17.8 17.3 1.4 1.5 1.94 -14.4 1.56 6.4 0.6 UMCCA 6.59 6.73 Sell 1,381 0.40 22.8 34.8 28.9 18.9 2.6 2.7 7.08 -6.9 5.76 14.4 1.2 GLOMAC 0.61 0.50 Sell 441 0.66 3.0 4.4 20.6 13.8 3.3 3.3 0.75 -18.1 0.58 5.2 0.0 HUAYANG 0.64 0.59 Sell 224 0.90 1.8 3.4 34.7 18.7 0.8 0.8 1.21 -47.5 0.60 6.7 4.1 IBRACO 0.82 0.92 Hold 405 na 9.1 12.4 8.9 6.5 4.9 6.1 0.99 -17.7 0.76 7.9 0.0 IOIPG 1.95 2.02 Hold 10,737 0.80 16.5 16.3 11.8 12.0 3.1 3.1 2.22 -12.2 1.79 8.9 5.4 MAHSING 1.48 1.69 Buy 3,591 0.89 13.0 12.6 11.3 11.8 4.4 4.4 1.64 -9.8 1.38 7.2 2.1 SIMEPROP 1.69 1.61 Sell 11,493 na 9.2 9.1 18.4 18.5 1.2 1.2 1.78 -5.1 1.04 62.5 -5.1 SNTORIA 0.66 0.76 Buy 371 0.19 8.3 8.6 7.9 7.6 1.5 1.5 0.91 -28.0 0.60 9.2 -5.8 PLANTATIONS PROPERTY Note: SNTORIA proposed bonus issue of warrants & right issue of shares. For more details please refer to SPB 4.91 5.28 Hold 1,687 0.65 21.2 26.1 23.2 18.8 2.4 2.4 5.50 -10.7 4.32 13.6 0.2 SPSETIA 3.42 3.77 Buy 10,344 0.94 21.3 21.9 16.0 15.6 3.5 3.5 4.38 -22.0 3.06 11.8 -14.5 SUNWAY 1.81 1.74 Hold 8,862 0.80 11.9 12.6 15.2 14.4 2.8 3.3 1.96 -7.6 1.27 42.7 11.0 SUNREIT 1.74 1.87 Hold 5,124 0.84 10.0 10.7 17.3 16.3 5.8 6.1 1.90 -8.4 1.64 6.1 -8.4 CMMT 1.43 1.72 Buy 2,914 0.71 8.6 8.9 16.6 16.0 6.3 6.4 1.83 -21.9 1.39 2.9 -21.9 REIT POWER & UTILITIES MALAKOF 1.02 1.16 Buy 5,098 0.81 6.0 6.8 17.0 15.0 6.9 6.9 1.39 -26.6 0.86 18.6 4.1 PETDAG 25.16 22.08 Sell 24,995 0.45 105.1 105.7 23.9 23.8 3.1 3.1 25.70 -2.1 21.00 19.8 3.7 PETGAS 19.20 19.10 Buy 37,992 0.97 98.8 99.5 19.4 19.3 3.6 3.6 21.74 -11.7 15.82 21.4 9.8 TENAGA 15.70 17.38 Buy 88,956 0.70 129.9 127.9 12.1 12.3 2.9 2.9 15.72 -0.1 13.00 20.8 2.9 YTLPOWR 1.33 1.17 Sell 10,543 0.88 9.6 10.1 13.8 13.2 3.8 3.8 1.50 -11.3 1.11 19.8 3.1 TELECOMMUNICATIONS AXIATA 5.68 5.75 Hold 51,393 1.36 16.0 19.5 35.5 29.1 1.4 2.8 5.82 -2.4 4.24 34.0 3.5 DIGI 4.87 5.20 Buy 37,864 0.79 20.0 20.6 24.4 23.6 4.1 4.2 5.19 -6.2 4.36 11.7 -4.5 MAXIS 6.05 6.10 Hold 47,254 0.72 26.2 25.7 23.1 23.5 3.3 3.3 6.60 -8.3 5.48 10.4 0.7 TM 6.18 7.20 Buy 23,224 0.49 23.2 24.9 26.6 24.9 3.4 3.6 6.69 -7.6 5.85 5.6 -1.9 ELSOFT 2.76 2.70 Hold 759 0.66 15.0 15.7 18.4 17.6 3.8 4.0 2.95 -6.4 1.36 102.3 2.2 IRIS 0.22 0.25 Buy 544 2.05 0.6 0.7 39.8 33.0 0.0 0.0 0.23 -4.3 0.12 91.3 18.9 11.8 TECHNOLOGY Semiconductor & Electronics INARI 3.80 3.35 Hold 7,797 0.87 14.2 15.9 26.8 23.9 2.6 3.0 3.82 -0.5 1.72 121.4 MPI 12.80 12.95 Hold 2,546 0.60 105.5 121.2 12.1 10.6 2.5 2.5 14.52 -11.8 7.60 68.4 1.4 UNISEM 3.41 3.25 Sell 2,502 1.02 27.1 28.7 12.6 11.9 3.5 3.5 4.25 -19.8 2.37 43.9 -6.6 TRANSPORTATION Airlines AIRASIA 3.59 3.83 Buy 11,997 1.26 38.3 39.8 9.4 9.0 1.4 1.7 3.60 -0.3 2.16 66.2 7.2 AIRPORT 9.10 8.47 Sell 15,099 1.39 19.7 20.1 46.1 45.2 1.1 1.3 9.45 -3.7 6.00 51.7 3.5 Freight & Tankers PTRANS 0.31 0.44 Buy 384 na 2.3 3.6 13.4 8.6 2.3 3.5 0.38 -20.1 0.14 116.5 8.9 TNLOGIS 1.36 1.80 Buy 621 1.14 13.6 14.0 10.0 9.7 3.7 3.7 1.83 -25.8 1.29 5.4 1.5 WPRTS 3.58 4.02 Hold 12,208 0.72 15.5 20.0 23.0 17.9 3.2 4.2 4.31 -16.9 3.34 7.2 -3.2 SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price (S$) (S$) Recom Market Cap. (S$m) Beta EPS (cent) FY18 FY19 PER (X) FY18 FY19 Div Yield (%) FY18 FY19 52week 52week % Chg High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 26.45 23.30 Sell 67,649 1.25 189.1 214.6 14.0 12.3 2.3 2.3 26.6 -0.5 17.65 49.9 6.4 OCBC 12.99 13.50 Buy 54,376 1.22 104.1 110.6 12.5 11.7 6.7 7.7 13.0 -0.2 9.15 42.0 4.8 UOB 27.25 26.90 Hold 45,318 1.06 215.4 229.3 12.6 12.6 2.6 2.6 27.3 -0.2 20.38 33.7 3.0 PLANTATIONS WILMAR 3.22 3.63 Hold 20,603 0.83 29.9 31.8 10.8 10.1 2.5 2.8 4.0 -19.5 3.06 5.2 4.2 IFAR 0.41 0.53 Hold 581 1.02 5.2 5.7 7.8 7.1 3.1 3.5 0.6 -30.2 0.37 11.0 3.8 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.
13. COMPANY UPDATE Tuesday , January 09, 2018 FBMKLCI: 1,832.15 Sector: Property THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TP: RM1.61 (-4.8%) Sime Darby Property Bhd Last Traded: RM1.69 Site Visit to City of Elmina Thiam Chiann Wen Tel: +603-2167 9615 Sell cwthiam@ta.com.my www.taonline.com.my Site Visit to City of Elmina Yesterday, Sime Darby Property (SDP) organised a site visit to City of Elmina, Shah Alam, in conjunction with the opening of the Elmina Interchange, Guthrie Corridor Expressway (GCE). The special site visit was to provide us with a better understanding of the group’s key growth areas, which are located strategically along the GCE. We visited Elmina Valley 1, Elmina Valley 3 and Denai Alam. In addition, the group arranged a drive through its undeveloped landbank along the GCE i.e. Kota Elmina and Lagong. To recap, SDP owns 10,297 acres of landbank along GCE with remaining GDV of more than RM20bn – see Figure 1. Share Information Bloomberg Code Stock Code Listing Share Cap (mn) Market Cap (RMmn) 52-wk Hi/Lo (RM) 12-mth Avg Daily Vol ('000 shrs) Estimated Free Float (%) Beta Major Shareholders (%) Figure 1: Sime Darby Property’s Landbank Along GCE Forecast Revision SDPR MK 5288 Main Market 6008.0 11,493.0 1.78/1.04 n.a 41.4 n.a PNB (53.8%) EPF (10.4%) Forecast Revision (%) Net profit (RMmn) Consensus TA's / Consensus (%) Previous Rating FY18 FY19 0.0 0.0 625.7 620.4 529.0 463.0 118.3 134.0 Buy (Downgraded) Financial Indicators Source: Company City of Elmina – Wellness and Liveable City The City of Elmina is a 5,000-acre township development with an estimated remaining GDV of RM20.4bn, which makes up 20% of the group’s total remaining GDV of RM100.4bn. It consists of four townships — the 1,088-acre Elmina East, 2,662-acre Elmina West, 1,000-acre Denai Alam and 250-acre Bukit Subang. Note that out of the 5,000 acres of land, 3,480 acres are reserved for green space. Launched in 1999, Denai Alam and Bukit Subang are already in the tail-end of the development. The group is now focusing on the development of Elmina East (GDV: RM3.6bn) and Elmina West (GDV: RM16.1bn). Slated for completion in another 25 years, City of Elmina will feature full-fledged amenities including a 300-acre central park, 90km cycling and jogging track, shopping mall, education hub, healthcare and wellness centre, and two public transport lines. Net gearing (%) CFPS (sen) P/CFPS (x) ROE ROA NTA/Share (RM) Price/ NTA (x) FY18 11.7 (2.3) (73.6) 6.4 4.2 1.4 1.2 FY19 16.6 (6.2) (27.1) 6.1 4.0 1.5 1.1 Share Performance (%) Price Change 1 mth 3 mth 6 mth 12 mth SDPR 32.0 n.a n.a n.a FBM KLCI 6.4 3.9 4.1 9.8 (12-Mth) Share Price relative to the FBMKLCI Source: Bloomberg Page 1 of 4
14. 9-Jan-18 The Development is Accessible via Major Highways Situated along the GCE , City of Elmina has been earmarked as the new growth corridor of the Klang Valley. The development enjoys good connectivity and is a short drive-away from the matured neighbourhoods of Damansara and Petaling Jaya. It can be accessed via major highways such as the New Klang Valley Expressway (NKVE), KL-Kuala Selangor Expressway (LATAR), GCE and Federal Highway. The upcoming DASH (expected completion in 2020) will link City of Elmina to Penchala Link and connect the development to Kota Damansara and Mutiara Damansara. It takes approximately 20 minutes to reach Kota Damansara or Mutiara Damansara and about 30 minutes to get to KL. Potential Enhancement of Connectivity with MRT/LRT Extension In addition, the township is also in close proximity to the Sg. Buloh station of the Sg. Buloh-Kajang MRT line (MRT Line 1) on the Kwasa Damansara land. We understand that the group intends to establish an MRT station in City of Elmina as an extension from the Sg. Buloh MRT station of MRT Line 1. There will be another line extension from the Shah Alam Stadium LRT station to Denai Alam and Elmina City Centre. We understand that the MRT and LRT stations have been approved under the Selangor Transportation Plan. The construction of the stations will begin when demand calls for it, but we gather that the space for construction of the stations has already been allocated. Recent Launches Received Warm Response In Oct-17, the group launched Elmina Green Phase 1, featuring 187 units 20’ x 70’ double-storey terrace homes, with a built-up area starting from 2,001 sq ft. Priced from RM684k/unit, 60% of the units were sold to date. Reprising the success of Elmina Green Phase 1, the group further rolled out Ferrea doublestorey linked homes in Denai Alam and Liana double-storey super linked homes in Elmina Gardens in Nov-17. To date, Ferrea and Liana have attained 73% and 40% take up rate, respectively. Figure 2: City of Elmina has Received Warm Response Township Project Name E lmina Wes t E lmina Green 1 Lia na Dena i Ala m Ferrea Total Gross Units Sold Take up Date Price Range Unit Sales Value as at 25 rate as at 25 Launched (RM'000) Launhced (RM mn) Dec 17 Dec 17 684 - 1,195 1,212 - 2,149 761 - 1,455 187 72 120 143.5 101.7 103 113 29 87 60% 40% 73% Oct-17 Nov-17 Nov-17 Source: Company The closest competitor within the vicinity, Gamuda Garden introduced its maiden phase in February last year. Despite the price tag of RM700k/unit and relatively further away from city centre as compared to City of Elmina, the 181 units of 20’ x 70’ double-storey terrace homes are fully sold. Gamuda launched the second phase, which comprise 134 units of double-storey link homes in Oct-17. The homes feature built-ups ranging from 2,114 sq ft to 2,800 sq ft with selling price starting from RM750k/unit. For 2HFY18, the group has lined up a slew of new product launches with potential GDV of RM618mn. That includes semi-detached units in Denai Alam and double-story linked units in Elmina Green phase 1B. Kota Elmina and Lagong Drive Through The group also arranged a drive through its undeveloped landbank along the GCE i.e. Kota Elmina (1,540 acres) and Lagong (1,522 acres). Kota Elmina and Page 2 of 4
15. 9-Jan-18 Lagong are located about 2km and 10km away from City of Elmina . Based on the master plan, Kota Elmina and Lagong are slated for launch in 2019 and 2021 respectively. In terms of product mix, it will roll out industrial units for the initial phases. Take Times to Realise Its Full Potential All in, we came away feeling reassured about the longer term prospects of City of Elmina, Kota Elmina and Lagong, thanks to the strong accessibility. They are set to benefit from rising home demand towards the outer cities of the Klang Valley over the next few years due to rapid house price appreciation in the first-tier cities in the Klang Valley. However, we reckon that execution is key for SDP as the entire development is a sizable tract of land to be developed and it would take time to realise the potential value of the landbank. Forecasts No change to our FY18-20 earnings forecasts. Valuation While we remain optimistic about SDP’s future growth potential, we believe that all of the positives have already been reflected in the stock price. Note that SDP’s share price has appreciated 41% since we upgrade the stock to Buy (from Hold) in our 2018 strategy report. Thus, we maintain SDP’s target price at RM1.61, based on blended CY18 PE/PB ratio of 18x/1.1x, and downgrade the stock to Sell from Buy previously. We may revisit our valuation should the group announce: 1) stronger-thanexpected property sales, 2) JV with established partners to expedite the development of its landbank, and 3) disposal of non-core assets to strengthen balance sheet. Valuation Table Blended PE/PB Valuation Peers average 2018 PE Premium/(discount) applied PE assumed 2018 EPS (RM) Equity value/share (RM) 14.6 Peers' average 2018 PB 23% Premium/(discount) applied 18.0 PB assumed 0.09 2018 BPS (RM) 1.65 Equity value/share (RM) Target Price (Average PE/PB) (RM) 1.61 1.0 10% 1.1 1.43 1.57 Figure 3 : City Of Elmina Landscaping Figure 4 : Clusia Double Storey Link Home 30’x100’ Source: Company, TA Research Source: Company, TA Research Page 3 of 4
16. 9-Jan-18 Earnings Summary Income Statement Balance Sheet FYE 30 June (RM m) 2016A 2017A 2018F 2019F 2020F Revenue 2,590.7 2,564.4 2,301.7 2,380.9 3,028.6 EBITDA 1,033.1 556.2 683.5 725.1 913.3 FYE 30 June (RM m) 2016A 2017A 2018F 2019F 2020F PPE 846.1 824.4 885.9 927.4 964.9 Investment properties 331.8 474.2 474.2 474.2 474.2 4,729.2 5,005.2 5,338.3 6,237.3 6,627.6 935.4 Depreciation (60.0) (57.2) (54.5) (58.5) (62.5) Property development EBIT 973.1 499.0 629.0 666.6 850.7 Inventories 878.5 801.5 701.3 721.3 Net interest income (20.3) 19.2 (13.7) (10.3) (10.7) Receivables 913.9 743.8 618.2 634.1 804.1 24.3 39.7 161.0 129.3 224.0 JV and Associates 1,980.2 2,106.6 2,267.5 2,396.8 2,620.8 1,064.1 Other assets 2,367.4 2,922.8 2,922.8 2,922.8 2,922.8 906.0 1,075.3 1,663.5 1,548.2 1,418.2 12,953.0 13,953.7 14,871.7 15,862.1 16,768.0 LT borrowings 4,289.3 3,168.4 1,056.7 1,186.6 1,316.5 ST borrowings 187.4 230.2 343.0 331.1 331.1 2,230.6 2,047.7 1,576.6 1,957.0 2,074.6 Share of associates' profit Pretax profit 977.2 557.9 776.3 785.6 (210.3) (154.5) (147.7) (157.5) (201.6) Minority interests (81.6) (85.1) (2.9) (7.7) (8.0) Net profit 685.3 318.2 625.7 620.4 854.4 Core net profit 354.1 478.2 625.7 620.4 854.4 Taxation Cash and ST funds Total assets Payables Cash Flow Statement Other liabilities FYE 30 June (RM m) Pretax profit Depreciation and amortisation Change in working capital Net interest paid 2016A 2017A 2018F 2019F 2020F 958.1 836.8 776.3 785.6 1,064.1 49.6 50.4 54.5 58.5 62.5 (261.0) (21.4) 105.1 170.5 256.4 - - (13.7) (10.3) (10.7) (140.7) (135.4) (147.7) (157.5) (201.6) Others (726.7) (236.8) (830.8) (844.1) (1,126.6) Operating cash flow (120.7) 493.7 (56.2) Tax paid 2.7 44.1 Capex (49.2) (26.3) (100.0) (100.0) (100.0) Investments 786.4 128.9 - - - Others (606.5) (322.3) - - - Investing cash flow 130.7 (219.8) (100.0) (100.0) (100.0) Issuance of shares 566.8 Net change in borrowings 7.3 364.6 2,879.3 - - (185.3) (1,998.8) 118.0 129.9 737.3 1,919.5 1,919.5 1,919.5 1,919.5 Liabilities 7,444.6 7,365.8 4,895.9 5,394.3 5,641.7 Share capital 1,010.4 2,405.5 6,800.8 6,800.8 6,800.8 Reserves 4,323.4 3,917.7 2,907.3 3,391.7 4,042.1 Shareholders' equity 5,333.9 6,323.2 9,708.2 10,192.5 10,843.0 Minority Interest Total equity Total equity and liabilities 174.5 264.7 267.7 275.3 283.3 5,508.4 6,587.9 9,975.8 10,467.9 11,126.3 12,953.0 13,953.7 14,871.7 15,862.1 16,768.0 2016A 2017A 2018F 2019F 2020F Key Statistics & Ratios FYE 30 June (RM m) Growth Revenue -20.4% -1.0% -10.2% 3.4% EBITDA 9.5% -46.2% 22.9% 6.1% 26.0% 29.4% -12.7% -7.2% 1.2% 35.5% Core net profit -15.6% 35.0% 30.8% -0.8% 37.7% Core EPS -15.6% 35.0% 30.8% -0.8% 37.7% 30.2% Pretax profit 27.2% Dividends paid (251.1) (50.0) (136.0) (136.0) (204.0) Others (257.1) (212.1) - - - Financing cash flow 65.9 (82.8) 744.5 (18.0) (74.1) Net cash flow 75.8 191.1 588.3 (115.3) (130.1) EBITDA margin 39.9% 21.7% 29.7% 30.5% Beginning cash 819.5 906.0 1,075.3 1,663.5 1,548.2 Pretax profit margin 37.0% 32.6% 33.7% 33.0% 35.1% Ending cash 906.0 1,075.3 1,663.5 1,548.2 1,418.2 Core net profit margin 13.7% 18.6% 27.2% 26.1% 28.2% Effective tax rate 22.5% 19.4% 24.0% 24.0% 24.0% Return on assets 6.7% 4.5% 4.2% 4.0% 5.1% Return on equity 16.4% 9.9% 6.4% 6.1% 7.9% 0.18 Profitability Valuation FYE 30 June (RM m) 2016A 2017A 2018F 2019F 2020F 12.8 9.2 9.2 9.1 12.6 Levarage 5.2 7.0 9.2 9.1 12.6 Total debt / total assets 0.34 0.19 0.19 0.18 P/E (x) 18.4 18.5 13.5 Total debt / equity 0.84 0.76 0.29 0.29 0.28 EV/EBITDA (x) 18.9 18.6 14.7 Net debt / equity 0.67 0.59 0.117 0.166 0.150 2016A 2017A 2018F 2019F 2020F EPS (sen) Core EPS (sen) Net DPS (sen) Net dividend yield (%) 2.0 2.0 3.0 1.2% 1.2% 1.8% Key Assumptions FYE 30 June (RM m) BV per share (RM) 1.4 1.5 1.6 Annual property sales - - 2,195.3 2,477.1 2,842.7 P/BV (x) 1.2 1.1 1.1 Blended property margin - - 27.3 27.5 27.2 Stock Recommendation Guideline BUY : HOLD : SELL : Not Rated: Total return within the next 12 months exceeds required rate of return by 5%-point. Total return within the next 12 months exceeds required rate of return by between 0-5%-point. Total return is lower than the required rate of return. The company is not under coverage. The report is for information only. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, January 09, 2018, the analyst, Thiam Chiann Wen, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 4 of 4
17. Tuesday , 09 January, 2018 TA RESEARCH’S ‘DAILY COMPILED REPORTS’ For Internal Circulation Only L oc al Te ch n ic al R ep o r ts 1. D ai l y Te ch n ic a l St o ck s P ic ks 2. D ai l y St o ck S cr een Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my
18. Technical View Tuesday , January 09, 2018 THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Daily Technical Stock Picks Malaysia FBM KLCI: 1,832.15 (+14.18, +0.78%) Chartist: Stephen Soo Close Name FBMKLCI 8/Jan 1832.15 Tel: +603-2167-9607 Change High Low 14.18 1,832.15 1,813.03 Bollinger Bands RSI stsoo@ta.com.my Moving Averages www.taonline.com.my DMI MACD DMI Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff 1,703.22 1,759.52 1,815.81 75.25 1,781.60 1,746.04 1,742.50 47.68 9.76 39.76 37.91 18.72 12.33 6.397 BUY MACD Recent Signal DMI MACD Signal Change BUY - - AFFIN 2.54 0.04 2.56 2.50 2.23 2.34 2.44 69.96 2.35 2.34 2.40 37.56 16.66 26.83 20.90 0.01 -0.02 0.025 BUY BUY - - ABMB 4.14 0.04 4.15 4.10 3.88 4.02 4.17 64.67 4.07 3.92 3.84 25.72 10.59 35.39 15.13 0.07 0.07 (0.004) BUY SELL - - AMBANK 4.68 0.08 4.69 4.58 4.06 4.34 4.63 69.90 4.42 4.28 4.30 31.13 9.79 35.73 21.34 0.08 0.04 0.035 BUY BUY - - AXIATA 5.68 -0.01 5.70 5.54 5.24 5.39 5.55 75.72 5.44 5.37 5.36 46.51 7.62 29.91 38.89 0.05 0.03 0.022 BUY BUY - - CIMB 6.82 0.12 6.83 6.63 5.93 6.37 6.80 74.28 6.54 6.23 6.18 35.43 8.11 42.82 27.31 0.13 0.11 0.023 BUY BUY - - DIGI 4.87 -0.02 4.90 4.83 4.65 4.82 5.00 54.93 4.87 4.75 4.80 25.98 12.45 26.52 13.53 0.04 0.03 0.012 BUY BUY - - GAMUDA 4.98 0.03 5.05 4.93 4.67 4.87 5.06 56.04 4.94 4.81 4.86 20.20 20.52 17.08 -0.32 0.04 0.02 0.013 SELL BUY SELL - GENTING 9.50 -0.12 9.63 9.46 8.58 9.08 9.57 65.64 9.24 9.06 9.10 31.92 15.48 20.62 16.44 0.10 0.03 0.072 BUY BUY - - GENM 5.78 -0.02 5.79 5.72 5.23 5.56 5.88 64.09 5.66 5.41 5.26 26.71 18.61 22.45 8.10 0.14 0.12 0.013 BUY BUY - - IHH 5.84 0.02 5.90 5.80 5.59 5.80 6.00 52.99 5.86 5.75 5.70 16.14 19.20 14.04 -3.05 0.05 0.05 0.001 SELL BUY SELL - IOICORP 4.64 0.04 4.68 4.55 4.36 4.49 4.62 62.43 4.54 4.48 4.48 21.49 13.64 11.99 7.84 0.03 0.01 0.015 BUY BUY - - MALAKOFF 1.02 0.08 1.03 0.96 0.87 0.91 0.96 52.99 0.92 0.92 0.96 29.18 8.44 31.79 20.73 -0.03 -0.03 0.000 BUY BUY - BUY MAXIS 6.05 0.00 6.10 6.03 5.89 5.97 6.04 63.74 6.00 5.94 5.94 10.83 21.04 41.58 -10.21 0.03 0.02 0.007 SELL BUY - - MAYBANK 9.85 0.05 9.85 9.79 9.14 9.51 9.88 70.79 9.64 9.42 9.34 40.20 6.25 51.50 33.95 0.13 0.09 0.033 BUY BUY - - MBSB 1.24 0.03 1.26 1.22 0.96 1.06 1.16 75.44 1.09 1.07 1.09 36.99 7.41 26.41 29.58 0.02 0.00 0.020 BUY BUY - - RHBBANK 5.19 0.01 5.25 5.13 4.70 4.97 5.24 63.20 5.03 4.94 4.93 27.65 13.83 19.16 13.82 0.06 0.03 0.028 BUY BUY - - SIME 2.79 0.02 2.91 2.73 1.83 2.21 2.59 83.93 2.32 2.19 2.14 56.87 7.82 32.06 49.05 0.11 0.05 0.063 BUY BUY - - 15.70 0.28 15.72 15.42 14.83 15.28 15.72 59.34 15.21 15.26 15.08 29.88 16.07 29.38 13.81 0.06 0.05 0.008 BUY BUY - BUY TM 6.18 0.16 6.18 6.01 5.89 6.12 6.36 45.46 6.18 6.09 6.10 22.84 17.46 30.72 5.38 0.01 0.02 (0.013) BUY SELL - - WPRTS 3.58 0.01 3.59 3.55 3.39 3.61 3.83 46.66 3.69 3.58 3.62 18.99 18.55 20.86 0.45 0.03 0.02 0.009 BUY BUY - - AIRASIA 3.59 0.00 3.60 3.54 3.12 3.32 3.51 74.65 3.37 3.27 3.26 35.37 7.88 30.63 27.49 0.06 0.03 0.028 BUY BUY - - AIRASIA X 0.37 0.00 0.38 0.37 0.31 0.34 0.37 64.93 0.34 0.34 0.36 28.36 11.10 47.94 17.26 0.00 -0.01 0.006 BUY BUY - - ARMADA 0.89 0.04 0.90 0.86 0.70 0.75 0.81 78.95 0.77 0.75 0.76 50.18 8.60 25.71 7.00 0.01 0.00 0.009 BUY BUY - - BINAPURI 0.37 0.01 0.37 0.36 0.33 0.34 0.35 65.78 0.34 0.34 0.35 25.11 18.10 18.82 19.84 0.00 0.00 0.002 BUY BUY - - CMSB 4.01 0.06 4.02 3.95 3.59 3.77 3.94 66.25 3.79 3.71 3.69 35.46 15.62 22.92 30.26 0.05 0.03 0.024 BUY BUY - - DIALOG 2.72 0.04 2.78 2.66 2.36 2.48 2.60 77.82 2.52 2.47 2.39 37.59 7.33 32.96 30.26 0.05 0.04 0.010 BUY BUY - - ECO WORLD 1.40 0.01 1.41 1.39 1.33 1.42 1.51 39.06 1.38 1.44 1.48 19.35 18.96 18.78 0.39 -0.03 -0.03 0.000 BUY BUY - BUY TENAGA EKOVEST 1.16 0.08 1.18 1.10 0.85 0.94 1.03 76.76 0.96 0.95 0.98 42.14 12.46 30.86 29.68 0.01 -0.01 0.019 BUY BUY - - GADANG 1.17 -0.01 1.19 1.16 1.02 1.09 1.17 65.81 1.11 1.09 1.13 30.79 8.90 34.56 21.89 0.01 -0.01 0.016 BUY BUY - - HSL 1.47 -0.01 1.48 1.46 1.40 1.45 1.49 56.64 1.44 1.46 1.48 27.58 17.16 13.19 10.42 -0.01 -0.01 0.006 BUY BUY - - ISKANDAR 1.43 0.02 1.44 1.37 1.23 1.36 1.48 62.31 1.41 1.32 1.32 26.18 6.01 47.53 20.17 0.04 0.03 0.006 BUY BUY - - KIMLUN 2.30 -0.01 2.35 2.30 2.18 2.26 2.35 56.28 2.24 2.28 2.30 38.59 29.83 16.34 8.76 -0.02 -0.02 0.001 BUY BUY BUY BUY KKBE 1.00 -0.01 1.01 0.99 0.93 0.99 1.06 57.91 0.98 0.98 0.93 39.70 25.93 28.92 13.77 0.01 0.02 (0.003) BUY SELL - - MUDAJAYA 0.93 0.01 0.93 0.90 0.89 0.92 0.95 42.01 0.92 0.95 1.02 24.88 34.38 33.50 -9.51 -0.02 -0.03 0.008 SELL BUY - - MRCB 1.29 0.03 1.31 1.27 0.97 1.11 1.25 79.14 1.16 1.08 1.06 40.15 8.62 36.10 31.52 0.05 0.03 0.018 BUY BUY - - NAIM 1.25 0.05 1.28 1.21 0.90 1.11 1.31 56.01 1.18 1.10 1.13 39.81 7.84 43.47 31.97 0.03 0.02 0.018 BUY BUY - - SAPURA ENERGY 0.98 0.17 0.98 0.83 0.62 0.76 0.90 40.84 0.72 0.94 1.15 20.38 36.96 67.26 -16.57 -0.12 -0.15 0.025 SELL BUY - - SUNCON 2.52 0.00 2.55 2.49 2.32 2.42 2.52 65.71 2.46 2.41 2.38 22.64 8.36 23.52 14.28 0.04 0.02 0.011 BUY BUY - - UEMS 1.20 0.02 1.21 1.18 0.97 1.07 1.17 70.49 1.09 1.06 1.07 40.25 8.90 26.23 31.35 0.02 0.01 0.016 BUY BUY - - UMWOG 0.46 0.05 0.47 0.42 0.25 0.31 0.37 81.93 0.32 0.31 0.31 50.76 8.89 22.45 41.87 0.01 0.00 0.011 BUY BUY - - WASEONG 1.34 0.04 1.35 1.30 1.06 1.17 1.28 67.37 1.18 1.17 1.10 45.51 11.14 50.89 34.37 0.03 0.02 0.011 BUY BUY - - WCT 1.83 0.10 1.83 1.73 1.41 1.56 1.71 66.89 1.63 1.57 1.60 36.21 9.14 31.60 27.07 0.02 0.00 0.022 BUY BUY - - The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash. INTERPRETATION OF TECHNICAL INDICATORS: Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band. 14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term downside risk. Moving Averages: A stock’s short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches below this level. Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend. Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero. Page 1 of 3
19. 9-Jan-18 Technical Comments : BUY Binapuri & Eco World Binapuri need to breakout above the 200-day ma (39sen) on strong buying momentum to enable challenge of the 38.2%FR (40sen), 50%FR (42sen) and 61.8%FR (44sen) ahead, while key chart supports are at 34sen and the 14/8/17 low (32.5sen). Eco World needs convincing breakout above the 50%FR (RM1.46) to target the 61.8%FR (RM1.52) and 76.4%FR (RM1.60) going forward, while the lower Bollinger band (RM1.33) and 23.6%FR (RM1.32) should cushion downside risk. BINAPURI RM0.37 (+0.01) BOLLINGER BANDS Upper Middle Lower RM RM RM SIMPLE MOVING AVERAGES 0.36 0.34 0.33 10-day 30-day 50-day RM RM RM DAILY MACD BUY Recent Signal Signal Change DMI Recent Signal Signal Change ECO WORLD RM RM RM SIMPLE MOVING AVERAGES 1.50 1.42 1.33 10-day 30-day 50-day BUY Recent Signal Signal Change DMI Recent Signal Signal Change BUY RM1.40 (+0.01) BOLLINGER BANDS Upper Middle Lower 0.35 0.34 0.35 RM RM RM DAILY MACD 1.39 1.44 1.47 BUY BUY Page 2 of 3
20. 9-Jan-18 Daily Money Flow of FBMKLCI Malaysia Chartist : Stephen Soo 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 Name FBMKLCI AMBANK ASTRO AXIATA BAT CIMB DIGI WPRTS GENTING GENM HLBANK HLFG IHH IOICORP KLK MAYBANK MAXIS MISC PCHEM PETDAG PETGAS PPB PBBANK RHBBANK IJ M SIME TM TENAGA KLCC HAP YTLCORP (RM'mn) INF LOW OUTF LOW NET FLOW 29-Dec 10.0 (0.6) (0.1) 0.3 0.2 2.5 (0.3) 0.1 (0.2) (0.5) (0.3) 0.3 0.5 0.0 (0.4) (1.7) 1.7 0.1 (1.3) (0.1) 0.1 (0.0) 2.8 (0.5) 0.2 4.5 0.4 (3.0) 5.2 (0.1) 0.1 Tel: +603-2167-9607 Total Money Flow (RM'mn) 2-J an 3-J an 4-J an (12.0) 25.5 21.8 (0.0) 1.9 (0.2) (0.3) 0.1 1.7 (2.3) 0.7 0.1 (0.3) 0.0 0.1 (1.0) (0.6) 9.8 5-J an (45.6) (0.7) (0.3) (1.1) (0.0) 2.4 2.7 (0.9) (1.9) (2.1) 2.7 (0.4) 0.1 (1.4) (0.3) (15.4) (1.8) (0.4) (2.2) (0.4) (0.3) (1.3) (4.9) (0.4) (0.6) (1.1) (2.6) (12.8) (0.4) (0.1) (0.7) (0.3) 0.2 1.4 0.2 0.3 0.1 1.1 0.3 (2.7) (2.4) (2.9) 0.2 2.4 0.0 (0.2) 0.4 (3.6) 0.0 0.3 1.6 0.2 16.9 0.1 (0.2) 0.6 Total 5D MF (0.2) 0.4 1.1 (2.4) (0.1) 13.1 0.8 (0.4) (1.1) (2.0) 3.1 (0.0) 4.0 (0.6) (2.9) (18.6) (5.1) 0.2 (8.0) 1.1 0.6 (1.2) (5.1) 0.8 0.3 16.9 (1.9) 15.3 4.6 (1.7) 0.0 stsoo@ta.com.my (A) (B) Prv. Chg Cur. Chg (3.7) (67.4) (2.1) (0.5) 1.5 (2.0) 3.0 (1.8) 0.0 (0.1) 10.3 (7.4) 0.5 3.0 0.0 (1.1) 2.0 (3.3) (0.1) (2.2) (0.3) 2.5 0.2 (0.5) (0.7) (1.0) 0.2 (1.7) (3.1) 2.5 (2.2) (13.0) (1.6) 1.1 0.1 (0.6) 0.7 (4.5) (0.9) (0.4) (0.7) (0.1) 0.5 (1.7) (3.6) (1.3) (1.3) (0.4) 0.1 (0.9) (9.1) (2.7) 0.1 (2.8) 1.6 (29.6) 0.4 (0.5) 1.0 0.1 0.3 (1.3) 29-Dec 1,797 4.41 2.65 5.49 40.00 6.54 2-J an 1,783 4.45 2.59 5.39 37.94 6.50 5.10 3.70 9.20 5.63 17.00 17.88 5.86 4.54 25.00 9.80 6.01 7.42 7.70 24.26 17.48 17.24 20.78 5.00 3.05 2.21 6.30 15.26 8.64 9.55 1.37 4.89 3.79 9.31 5.78 17.02 17.88 5.90 4.54 24.72 9.66 6.00 7.42 7.85 24.36 17.52 17.08 20.76 5.06 3.01 2.22 6.17 15.22 7.91 9.58 1.34 OUTFLOW CLOSING PRICE 3-J an 4-J an 1,793 1,803 4.56 4.59 2.69 2.69 5.42 5.46 38.02 37.90 6.53 6.55 18.8 6.4 36.3 38.2 7.9 9.4 (9.0) 9.8 (13.1) (6.7) (7.5) 28.8 (12.5) 25.7 (54.4) (46.5) (29.1) (19.8) Date Retail Ins titution Foreign Total 29-Dec 29.1% 57.3% 13.6% 100% 12 (18) 2-J a n 3-J a n 4-J a n 5-J a n 34.3% 28.8% 27.5% 29.2% 52.1% 53.2% 49.0% 50.3% 13.6% 18.0% 23.5% 20.5% 100% 100% 100% 100% 18 (12) 19 (11) 22 (8) 4 (26) 4.90 3.73 9.46 5.65 17.00 17.92 5.90 4.60 24.84 9.80 6.03 7.40 8.19 24.58 18.10 17.20 20.74 5.20 3.00 2.68 6.03 15.40 7.89 9.55 1.34 Chg 14.52 0.01 0.03 0.23 (0.40) 0.15 (0.01) (0.16) 0.16 0.15 0.20 (0.04) (0.08) 0.00 0.04 0.00 0.02 0.05 (0.04) 0.12 0.26 0.10 0.04 (0.02) 0.04 0.09 (0.01) 0.02 (0.07) 0.00 0.04 (0.8) 0.2 (0.6) 0.3 0.6 (0.2) 1.8 0.0 0.4 (0.1) (1.3) 0.1 1.6 0.9 0.5 (0.1) 0.0 1.3 0.3 10.7 0.0 15.3 (0.3) (1.2) 0.3 16 (14) 4.88 3.75 9.37 5.80 17.00 17.92 5.88 4.53 24.80 9.78 5.95 7.35 7.95 24.50 17.94 17.12 20.76 5.14 3.07 2.41 6.15 15.30 7.89 9.54 1.34 5-J an 1,818 4.60 2.72 5.69 37.50 6.70 4.89 3.57 9.62 5.80 17.20 17.88 5.82 4.60 24.88 9.80 6.05 7.45 8.15 24.70 18.36 17.30 20.78 5.18 3.04 2.77 6.02 15.42 7.82 9.55 1.38 (0.4) 0.0 0.1 0.1 (0.2) 0.2 0.5 0.6 0.0 1.0 (0.9) 0.1 (8.5) 0.7 0.5 (0.1) 0.7 0.3 0.1 1.3 0.2 (1.1) 0.1 (0.0) (0.4) (A+B) DMF OUT OUT OUT IN OUT IN IN OUT OUT OUT IN OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT OUT IN OUT Daily Trading Participation COMPANIES INFLOW www.taonline.com.my Sources: Bloomberg, TA Securities Daily Money Flow (DMF) Formulation If previous change (A) + current change (B) > 0, then DMF = “IN”; AND if (A) + (B) < 0, then DMF = “OUT”. Money Flow (MF) Calculation The value of money flow is set to zero at the start of the trading day. When a trade is performed, its price is compared to the price of the previous trade (the first trade of the day is compared to the previous day's close). If the prices differ, the money associated with the trade (price times number of shares) is added to or subtracted from the money flow. Additions (inflows, buys) are done on upticks; subtractions (outflows, sells) are done on downticks. Daily Money Flow (DMF) Interpretation In general, money flow trends confirm price trends. As prices rise, money flows are usually positive. As prices fall, money flows are usually negative. A divergence, however, between money flow and price trend can be a signal of a future price trend change. For example, a falling stock price with a positive money flow (IN) can indicate a future rally in the price of the stock. Conversely, a rising stock price with a negative money flow (OUT) implies potential correction in the stock price. Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. As of Tuesday, January 09, 2018, the chartist, Stephen Soo, who prepared this report, has interest in the following securities covered in this report: (a) nil Kaladher Govindan – Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048 www.ta.com.my Page 3 of 3