Company Update – Globetronics (BUY, maintain); Results Note – HAI-O (HOLD, upgrade); Economy – CPI

Transcription

1. 22 December 2016 Today ’s Highlights B ur sa M alaysia Company Update – Globetronics (BUY, maintain) - A better 2017, round the corner Results Note – HAI-O (HOLD, upgrade) - MLM business prospers KLCI 52-wk range 1862.80 - 1532.14 M kt Cap (RM bn) 1,658.28 Vol (m shrs) 1,157.75 Value (RM m) 1,561.58 KLCI futures (spot) 1,631.00 KLCI futures (1-mth) 1,637.50 KLC I Ind ex ( 12 - mt h) Economy – CPI - Headline inflation rises to 1.8% yoy in November 1800 1750 Quick bites 1700 Gabungan AQRS (BUY) – Secured a RM392m project. 1650 1600 Dec-16 Aug-16 Apr-16 1550 Dec-15 MBSB: Bank Negara no objection for MBSB to commence merger negotiations T o p 4 Gainer s Outside Malaysia Pr ice ( R M ) chg ( R M ) US stocks slide as Dow hovers near 20,000, health shares drop US existing-home sales climb to highest since early 2007 Spain probably expanded 0.7% this quarter, central bank says UK November borrowing leaves Hammond on track to meet forecast New Zealand economy grows faster than expected on building boom Indonesia’s outlook changed to positive from stable at Fitch % chg NESTLE 78.60 0.30 0.38 SHANG 5.33 0.12 2.30 GENTING 7.92 0.11 1.41 KOSSAN 6.45 0.10 1.57 14.90 0.10 0.68 Pr ice ( R M ) chg ( R M ) % chg HLFG T o p 5 Lo ser s BAT 43.18 -0.74 -1.68 DLADY 55.56 -0.28 -0.50 PETDAG 23.52 -0.22 -0.93 PANAM Y 31.80 -0.20 -0.62 KLK 23.66 -0.14 -0.59 Pr ice ( R M ) chg ( R M ) V al ( R M m) Thailand holds rate as fed hike pressures Asian currencies T o p 5 V alue T r ad ed Oil declines as US crude inventories unexpectedly increase TENAGA 13.76 0.04 218.13 PBBANK 19.74 0.02 111.01 M AYBANK 7.87 -0.04 63.51 CIM B 4.54 -0.06 60.29 SKPETRO 1.68 0.07 57.81 Key Eq uit y Ind ices C lo se KLCI -0.30 -3.72 19,941.96 -0.16 14.44 Nasdaq 5,471.43 -0.23 9.27 FTSE100 7,041.42 -0.04 12.80 -0.96 Dow Jones Other Markets Key Indicators East. Europe COMMODITIES CURRENCIES Latest CPO (RM/Tonne) Spot (Jan) 3-mth futures (Mar) Brent Crude Oil (US$/brl) Spot 1-mth futures Gold (US$/oz) Spot 1-mth futures chg (%) 3,154.0 3,114.0 52.5 53.4 1131.1 1131.6 1.0 0.7 (1.5) (1.5) (0.0) (0.0) Latest Ytd chg (%) RM/US$ 4.48 (4.1) RM per 100 Yen 3.81 (6.3) RM/S$ 3.10 (2.0) Yen/US$ 117.47 2.3 Eur/US$ 0.96 4.1 RM/AUD 3.25 (3.2) MALAYSIA INTEREST RATES Latest Ytd chg (bps) OPR (%) 3.00 (25.0) 3-mth Klibor (%) 3.41 (43.0) Maybank BR (%) 3.00 *as at 1 July 2016 % chg Y t d chg ( %) 1,629.59 M exico Shenzen B 2,820.04 -0.31 44,983.03 0.12 4.67 1,996.03 0.74 -13.55 Shanghai B 3,137.43 1.11 -11.35 Hong Kong 21,809.80 0.37 -0.48 Korea 2,037.96 -0.19 3.91 Singapore 2,901.70 -0.33 0.66 Indonesia 5,111.39 -0.99 11.29 6,686.36 0.42 -3.82 Thailand 1,508.57 -0.20 17.12 Vietnam 666.94 0.65 15.18 26,242.38 -0.25 0.48 9,204.26 -0.41 10.39 Philippines India Taiwan Affin Hwang Investment Bank Bhd (14389-U) Page 1 of 7
2. 22 December 2016 Quick Bites Gabungan AQRS (BUY) – Secured a RM392m project. MRT Corp announced that there was an incident involving a member of the public at the Klang Valley Mass Rapid Transit Line 1 (MRT1) project work site at Jalan Duta. Initial reports from witnesses say that a man, involved in an accident with another vehicle on Jalan Duta outside the MRT work site, climbed up the scaffolding and jumped off to his death. Comments: It appears that the contractor Sunway (RM3.45, BUY, TP RM3.79) may not be at fault for the incident as the man was trespassing on the work site. There could be some delay due to police investigations but we expect minimal impact on the overall construction works for the project. We reiterate our BUY call on Sunway with RM3.79 target price. MBSB: Bank Negara no objection for MBSB to commence merger negotiations Malaysia Building Society Berhad (MBSB) announced that Bank Negara Malaysia's (BNM) has no objection-in-principle for MBSB to commence negotiations with the existing shareholders of Asian Finance Bank Berhad (AFB), i.e. Qater Islamic Bank, RUSB Investment Bank Inc, Tadhamon International Islamic Bank and Financial Assets Bahrain WLL for a proposed merger of comprising MBSB and AFB. The parties involved have a period of 6 months (up till 21 May 2017) to come up with a merger proposal. (Source: Bursa Malaysia) Comments: According to the AFB's website, the bank is mainly involved in Islamic Banking and offers corporate and commercial banking, Treasury and Investment Banking services. Based on its 30 Sept 2016's quarterly financial statements, AFB has total assets of RM2.54bn and a financing book outstanding of RM1.46bn (88% for working capital financing). Its shareholders funds stood at RM500m while 9M16 net profit was RM4.54m. In terms of asset quality, gross impaired financing ratio stood at 0.9%, with a financing loss cover of 319%. Overall, AFB's books appear to be a good merger proposition with MBSB and will enable MBSB to become a fullfledged Islamic Bank. Key factor remains the offer price - assuming at a 1.5x P/BV multiple, the acquisition price will be RM750m, should the merger materialize. A potential merger is viewed as a favourable and inexpensive route for MBSB to achieve its vision to be a full-fledged Islamic bank. At this juncture, we still maintain our SELL rating on MBSB with our price target unchanged at RM0.78 (based on a 0.65x FY17E P/BV target multiple). Affin Hwang Investment Bank Bhd (14389-U) Page 2 of 7
3. 22 December 2016 Outside Malaysia US stocks slide as Dow hovers near 20 ,000, health shares drop US stocks slid with the Dow Jones Industrial Average within 60 points of reaching 20,000, following a rally that has pushed the country’s equities into the top four best-performing developed markets this year. The S&P 500 Index fell 0.3% to 2,265.18. The Dow Jones Industrial Average lost 32.66 points (-0.2%) to 19,941.96. US existing-home sales climb to highest since early 2007 Sales of previously owned US homes unexpectedly increased in November to the strongest level since early 2007, ahead of a jump in borrowing costs, National Association of Realtors data showed. Contract closings rose 0.7% to a 5.61m annual rate, that fastest pace since February 2007. The median forecast in a Bloomberg survey was 5.5m. Spain probably expanded 0.7% this quarter, central bank says Spain’s economy probably maintained its pace this quarter, supported by resilient internal demand and “intense” job creation, the country’s central bank said. The Bank of Spain estimates that GDP will show an increase in output of 0.7% in 4Q16, unchanged from 3Q16. The central bank noted the recovery continues to be bolstered by the strength of the nation’s internal spending push, pegged to more employment and favorable financing conditions for households. UK November borrowing leaves Hammond on track to meet forecast UK’s budget deficit narrowed marginally in November, leaving Chancellor of the Exchequer Philip Hammond on course to meet his new full-year borrowing target. Net borrowing was £12.6bn (US$15.5bn) compared with £13.2bn a year earlier, the Office for National Statistics said. It left the shortfall in the first eight months of the fiscal year down 11.5% at £59.5bn. New Zealand economy grows faster than expected on building boom New Zealand’s economy grew more than economists forecast last quarter as construction boomed and consumer spending increased. Gross domestic product gained 1.1% from the previous quarter, when it rose a revised 0.7% that was lower than first reported. The median forecast in a Bloomberg survey was 0.8% gain. Indonesia’s outlook changed to positive from stable at Fitch Indonesia’s credit rating outlook was changed to positive from stable by Fitch Ratings, citing the potential of reforms in the past year supporting growth in Indonesia’s economy. The country’s BBB- rating was affirmed, Fitch said in a statement. “A strong structural reform drive since September 2015 is gradually improving the difficult business environment, and is likely to support the growth outlook in the medium term,” Fitch said. Thailand holds rate as fed hike pressures Asian currencies Thailand held its key interest rate near a record low for a 13th straight meeting, opting for stability as the prospect of higher US borrowing costs weighs on Asian currencies and clouds the outlook for growth. The Bank of Thailand kept its one-day bond repurchase rate at 1.5%, the central bank said. All but one surveyed by Bloomberg predicted the decision. Oil declines as US crude inventories unexpectedly increase Oil declined after a government report showed US crude stockpiles increased for the first time in five weeks. Brent for February settlement slipped US$0.89 to US$54.46. Source: Bloomberg (Lim Yee Ping; 03-2146 7540; yeeping.lim@affinhwang.com) Affin Hwang Investment Bank Bhd (14389-U) Page 3 of 7
4. 22 December 2016 Market Summary Table 1 : Off Market transactions Price (RM) Vol (m) Val (RMm) Type* IRIS 0.08 15.0 1.2 D BIMB 4.25 14.1 59.9 D SKPETRO 1.68 12.6 21.2 D ANZO 0.23 10.7 2.5 D CHINHIN 0.88 10.0 8.8 D OCR 0.50 3.0 1.5 D PETGAS 21.28 2.5 53.2 D ENGTEX 1.20 1.8 2.2 D SERSOL 0.11 1.0 0.1 D PERISAI 0.06 1.0 0.1 D Shares Source: Bloomb erg Table 2: Shares Buyback/ Resale Company* Date Units Treasury Transaction SUNWAY 21-Dec 682,000 37,799,800 Share Buyback YINSON 21-Dec 10,000 4,607,200 Share Buyback Date Units Transaction - - - Payment * Only FBM100 Component Stocks Source : Bursa Malaysia Table 3: ESOS Company* - - * Only FBM100 Component Stocks Source : Bursa Malaysia Table 4: Entitlements Company Entitlement Ex-Date Lodgement MYEG Bonus Issue 28-Dec 30-Dec - Loan Stock Interest 28-Dec 30-Dec 12-Jan-17 Bonus Issue 28-Dec 30-Dec - Others 5-Jan 9-Jan - Rights Issue 5-Jan 9-Jan - MALTON KOBAY VIZIONE-LA VIZIONE Source : Bursa Malaysia Table 5: Bursa Malaysia Trade Statistics Participation (%) Bought (RMm) Sold (RMm) Net (RMm) Local Institution 63.2 1,028.7 943.9 84.8 Local Retail 12.6 204.2 198.6 5.6 Foreign 23.9 328.7 419.1 -90.4 100.0 1,561.6 1,561.6 0.0 Participant Total Source : Bursa Malaysia Affin Hwang Investment Bank Bhd (14389-U) Page 4 of 7
5. 22 December 2016 Fig 6 : Shareholdings change Date Substantial Shareholder EPF Transaction Acquired Units Company 16-Dec-16 500,000 AIRPORT EPF 16-Dec-16 Acquired 500,000 AMBANK EPF 16-Dec-16 Disposed 2,092,700 AMBANK EPF 15 to 16-Dec-16 Acquired 1,071,077 AXIATA EPF 16-Dec-16 Acquired 315,100 BIMB 13 to 14-Dec-16 Acquired 221,800 BSTEAD EPF 16-Dec-16 Disposed 400,000 BURSA EPF 9 to 13-Dec-16 Acquired 7,416,900 CIMB EPF 9 to 13-Dec-16 Disposed 11,239,708 CIMB EPF 15 to 16-Dec-16 Disposed 1,946,900 DIGI Amanah Raya Trustees 14 to 15-Dec-16 Acquired 110,600 DLADY EPF 16-Dec-16 Disposed 652,300 GENP EPF 16-Dec-16 Acquired 500,000 HARTA EPF 16-Dec-16 Disposed 93,800 HLBANK EPF 16-Dec-16 Acquired 1,000,000 IGBREIT EPF 16-Dec-16 Disposed 3,000,000 IGBREIT IHH Lembaga Tabung Haji EPF 16-Dec-16 Acquired 2,900,600 EPF 16-Dec-16 Acquired 2,500,000 IJM EPF 16-Dec-16 Disposed 3,104,090 INARI EPF 16-Dec-16 Disposed 2,704,400 IOICORP EPF 16-Dec-16 Acquired 1,000,000 IOIPG EPF 16-Dec-16 Disposed 106,100 KLK EPF 16-Dec-16 Acquired 394,100 MAXIS EPF 16-Dec-16 Acquired 400,000 MAYBANK EPF 15-Dec-16 Acquired 409,700 MISC EPF 13 to 14-Dec-16 Disposed 858,737 MISC EPF 16-Dec-16 Acquired 13,800 NESTLE EPF 16-Dec-16 Disposed 50,000 NESTLE EPF 16-Dec-16 Disposed 17,300 ORIENT EPF 7 to 9-Dec-16 Disposed 2,300 PANAMY EPF 16-Dec-16 Acquired 1,939,500 PBBANK EPF 16-Dec-16 Disposed 3,882,500 PBBANK EPF 16-Dec-16 Acquired 5,010,800 PCHEM EPF 16-Dec-16 Acquired 1,367,100 PETGAS Kumpulan Wang Persaraan 14-Dec-16 Acquired 401,600 PETGAS EPF 16-Dec-16 Disposed 104,200 PPB EPF 16-Dec-16 Disposed 4,500,000 SKPETRO EPF 16-Dec-16 Acquired 235,900 SPSETIA EPF 16-Dec-16 Disposed 185,600 TAKAFUL EPF 15 to 16-Dec-16 Acquired 2,028,800 TENAGA EPF 15 to 16-Dec-16 Disposed 12,078,100 TENAGA EPF 16-Dec-16 Acquired 292,300 TM EPF 16-Dec-16 Acquired 151,200 TOPGLOV TOPGLOV EPF 16-Dec-16 Disposed 1,685,400 EPF 16-Dec-16 Disposed 2,069,600 WPRTS EPF 16-Dec-16 Disposed 69,900 YINSON EPF 16-Dec-16 Disposed 4,849,800 YTL Source: Bursa Malaysia Affin Hwang Investment Bank Bhd (14389-U) Page 5 of 7
6. 22 December 2016 Fig 7 : Dividend Entitlement Stocks Particulars MATRIX Interim Dividend DPS (sen) Announce Ex-Date Lodge Payment 3.25 15-Nov-16 23-Dec-16 28-Dec-16 12-Jan-17 25-Jan-17 MYEG Final Dividend 1.30 11-Nov-16 23-Dec-16 28-Dec-16 PTARAS Final Dividend 12.00 22-Sep-16 23-Dec-16 28-Dec-16 12-Jan-17 SHL First Interim Dividend 6.00 24-Nov-16 23-Dec-16 28-Dec-16 12-Jan-17 18-Jan-17 PANAMY Interim Dividend 15.00 29-Nov-16 23-Dec-16 28-Dec-16 TEXCHEM Interim Dividend 10.00 9-Dec-16 23-Dec-16 28-Dec-16 10-Jan-17 ULICORP Interim Dividend 3.00 8-Dec-16 27-Dec-16 29-Dec-16 18-Jan-17 MAGNI Second Interim Dividend 3.00 13-Dec-16 27-Dec-16 29-Dec-16 13-Jan-17 MAGNI Single Tier Special Dividend 2.00 13-Dec-16 27-Dec-16 29-Dec-16 13-Jan-17 3.50 27-Oct-16 28-Dec-16 30-Dec-16 9-Jan-17 10.00 27-Sep-16 28-Dec-16 30-Dec-16 31-Jan-17 CHEEWAH First and Final Dividend SCIENTX Final Dividend IQGROUP Interim Dividend 5.00 17-Nov-16 28-Dec-16 30-Dec-16 25-Jan-17 PTRANS Second Interim Dividend 0.15 17-Nov-16 28-Dec-16 30-Dec-16 24-Jan-17 17-Jan-17 PRLEXUS Final Dividend 1.75 23-Nov-16 28-Dec-16 30-Dec-16 UCHITEC Interim Dividend 5.00 8-Dec-16 28-Dec-16 30-Dec-16 24-Jan-17 ADVPKG Interim Dividend 6.00 9-Dec-16 28-Dec-16 30-Dec-16 19-Jan-17 KRETAM Interim Dividend 1.00 13-Dec-16 28-Dec-16 30-Dec-16 16-Jan-17 PLABS Interim Dividend 0.70 13-Dec-16 28-Dec-16 30-Dec-16 24-Jan-17 3.00 16-Dec-16 28-Dec-16 30-Dec-16 27-Jan-17 13.00 16-Dec-16 28-Dec-16 30-Dec-16 27-Jan-17 Second Interim Dividend 1.00 16-Dec-16 29-Dec-16 3-Dec-16 13-Jan-17 SUCCESS Interim Dividend 5.00 16-Dec-16 29-Dec-16 3-Jan-17 31-Jan-17 SUPERLN Interim Dividend 2.50 16-Dec-16 29-Dec-16 3-Jan-17 19-Jan-17 FLBHD Interim Dividend 6.00 16-Dec-16 29-Dec-16 3-Jan-17 16-Jan-17 PESTECH Final Dividend BIMB Interim Dividend DSONIC IMASPRO First and Final Dividend 3.50 24-Oct-16 30-Dec-16 4-Jan-17 17-Jan-17 GREENYB Final Dividend 0.60 23-Nov-16 30-Dec-16 4-Jan-17 16-Jan-17 20-Jan-17 SURIA Interim Dividend 3.00 16-Dec-16 30-Dec-16 4-Jan-17 FACBIND Final Dividend 2.50 27-Oct-16 3-Jan-17 5-Jan-17 19-Jan-17 GAMUDA First Interim Dividend 6.00 16-Dec-16 3-Jan-17 5-Jan-17 25-Jan-17 CBIP Second Interim Dividend 3.00 19-Dec-16 3-Jan-17 5-Jan-17 20-Jan-17 P&O First Interim Dividend 1.00 19-Dec-16 3-Jan-17 5-Jan-17 25-Jan-17 RANHILL Interim Dividend 2.00 19-Dec-16 3-Jan-17 5-Jan-17 19-Jan-17 HIAPTEK Final Dividend 0.30 22-Nov-16 4-Jan-17 6-Jan-17 25-Jan-17 SCC Interim Dividend 5.00 24-Nov-16 4-Jan-17 6-Jan-17 20-Jan-17 CYL Interim Dividend 2.00 16-Dec-16 4-Jan-17 6-Jan-17 18-Jan-17 TAKAFUL Interim Dividend 12.00 20-Dec-16 4-Jan-17 6-Jan-17 20-Jan-17 BAUTO Second Interim Dividend 2.75 8-Dec-16 5-Jan-17 9-Jan-17 25-Jan-17 BJTOTO Second Interim Dividend 4.00 16-Dec-16 5-Jan-17 9-Jan-17 25-Jan-17 KESM Final Dividend 3.00 25-Oct-16 6-Jan-17 10-Jan-17 26-Jan-17 TOPGLOV Final Dividend 8.50 11-Nov-16 6-Jan-17 10-Jan-17 23-Jan-17 23-Jan-17 PRTASCO Interim Dividend 3.00 24-Nov-16 9-Jan-17 11-Jan-17 UMCCA First Interim Dividend 8.00 16-Dec-16 9-Jan-17 11-Jan-17 9-Jan-17 VS Final Dividend 0.80 29-Nov-16 10-Jan-17 12-Jan-17 25-Jan-17 ELKDESA Interim Dividend 3.25 10-Nov-16 16-Jan-17 18-Jan-17 8-Feb-17 BENALEC Final Dividend 0.70 7-Oct-16 18-Jan-17 20-Jan-17 10-Feb-17 PRESTAR Interim Dividend 1.00 24-Nov-16 19-Jan-17 23-Jan-17 16-Feb-17 TAMBUN Interim Dividend 3.00 17-Nov-16 24-Jan-17 26-Jan-17 16-Feb-17 OLDTOWN Interim Dividend 3.00 24-Nov-16 25-Jan-17 27-Jan-17 16-Feb-17 DNEX Second Interim Dividend 0.50 20-Dec-16 26-Jan-17 31-Jan-17 28-Feb-17 POHKONG First and Final Dividend 1.00 18-Nov-16 14-Feb-17 16-Feb-17 9-Mar-17 BKAWAN Final Dividend 40.00 16-Nov-16 20-Feb-17 22-Feb-17 16-Mar-17 14-Mar-17 KLK Final Dividend 35.00 16-Nov-16 20-Feb-17 22-Feb-17 PLB First and Final Dividend 1.00 21-Dec-16 23-Feb-17 27-Feb-17 21-Mar-17 SYF First and Final Dividend 1.00 29-Nov-16 13-Mar-17 15-Mar-17 29-Mar-17 Source: Bursa Malaysia Affin Hwang Investment Bank Bhd (14389-U) Page 6 of 7
7. 22 December 2016 Equity Rating Structure and Definitions BUY Total return is expected to exceed +10% over a 12-month period HOLD Total return is expected to be between -5% and +10% over a 12-month period SELL Total return is expected to be below -5% over a 12-month period NOT RATED Affin Hwang Investment Bank Berhad does not provide research coverage or rating for this company. Report is intended as information only and not as a recommendation The total expected return is defined as the percentage upside/downside to our target price plus the net dividend yield over the next 12 months. OVERWEIGHT Industry, as defined by the analyst’s coverage universe, is expected to outperform the KLCI benchmark over the next 12 months NEUTRAL Industry, as defined by the analyst’s coverage universe, is expected to perform inline with the KLCI benchmark over the next 12 months UNDERWEIGHT Industry, as defined by the analyst’s coverage universe is expected to under-perform the KLCI benchmark over the next 12 months This report is intended for information purposes only and has been prepared by Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) (“the Company”) based on sources believed to be reliable. However, such sources have not been independently verified by the Company, and as such the Company does not give any guarantee, representation or warranty (express or implied) as to the adequacy, accuracy, reliability or completeness of the information and/or opinion provided or rendered in this report. Facts, information, views and/or opinion presented in this report have not been reviewed by, may not reflect information known to, and may present a differing view expressed by other business units within the Company, including investment banking personnel. Reports issued by the Company, are prepared in accordance with the Company’s policies for managing conflicts of interest arising as a result of publication and distribution of investment research reports. Under no circumstances shall the Company, its associates and/or any person related to it be liable in any manner whatsoever for any consequences (including but are not limited to any direct, indirect or consequential losses, loss of profit and damages) arising from the use of or reliance on the information and/or opinion provided or rendered in this report. Any opinions or estimates in this report are that of the Company, as of this date and subject to change without prior notice. Under no circumstances shall this report be construed as an offer to sell or a solicitation of an offer to buy any securities. The Company and/or any of its directors and/or employees may have an interest in the securities mentioned therein. The Company may also make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not fit to your financial status, risk and return preferences and hence an independent evaluation is essential. Investors are advised to independently evaluate particular investments and strategies and to seek independent financial, legal and other advice on the information and/or opinion contained in this report before investing or participating in any of the securities or investment strategies or transactions discussed in this report. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. The Company’s research, or any portion thereof may not be reprinted, sold or redistributed without the consent of the Company. The Company, is a participant of the Capital Market Development Fund-Bursa Research Scheme, and will receive compensation for the participation. This report is printed and published by: Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) A Participating Organisation of Bursa Malaysia Securities Bhd Chulan Tower Branch, 3rd Floor, Chulan Tower, No 3, Jalan Conlay, 50450 Kuala Lumpur. www.affinhwang.com Email : research@affinhwang.com Tel : + 603 2143 8668 Fax : + 603 2145 3005 Affin Hwang Investment Bank Bhd (14389-U) Page 7 of 7