Malaysia - Bearish Momentum Persists on Foreign Selling

Transcription

1. TA Securities Tuesday , September 20, 2016 FBMKLCI: 1,651.71 A Member of the TA Group MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Daily Brief Market View, News In Brief: Corporate, Economy, and Share Buybacks THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Market View Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my Bearish Momentum Persists on Foreign Selling Bursa Malaysia shares closed lower Monday dampened by late foreign sales, diverging from regional rebound on hopes the US will not raise rates and the Bank of Japan could introduce stimulus to boost the domestic economy. The KLCI ended 1.28 points down at the day’s low of 1,651.71, off an opening high of 1,661.87, as losers beat gainers 444 to 333 on cautious trade totaling 1.14bn shares worth RM1.44bn. Break Below 1,648 to Target 1,630/1,616 Bearish technical momentum and worries over sustained foreign selling ahead of potential hike in US interest rates by year-end should dampen stocks prices in the near-term. On the index, a breakdown on close below 1,648, the 3 Aug low, will risk a sharp dip to 1,630, with stronger support seen at 1,616, the 50% retracement of the 1,503 low of August last year to the April high of 1,729. Overhead resistance will be from the falling 10-day moving average at 1,675, and then 1,679, the 30-day ma, with tougher resistance seen at the 1,700 psychological level and subsequently 1,729. SELL DiGi.com & Gamuda Daily stochastics sell signal highlights bearish momentum on DiGi.com which may fall further towards the 23.6%FR (RM4.67) or RM4.50 before stabilizing. Crucial support is from the 29/4/16 low (RM4.31) while resistance from the 50%FR (RM5.08) is reinforced by the upper Bollinger band (RM5.13). Daily MACD sell signal on Gamuda implies correction potential towards the 61.8%FR (RM4.75), while a breakdown will aim for the 50%FR (RM4.56) before stalling. Key overhead resistance is found at the 76.4%FR (RM4.98). Asian Markets Mostly Higher Ahead of Central Bank Meetings Most Asian shares advanced on Monday ahead of central bank meetings in the United States and Japan this week, while oil prices bounced on talk of an OPEC deal on output and reports of fighting around Libyan oil ports. Investors will look for clarity from the U.S. Federal Reserve on the timing of the next interest rate hike, with many analysts suggesting a rise in September was unlikely following a series of lower-than-expected economic data. The Bank of Japan also meets on Wednesday and could well go in the opposite direction by easing policy, though conflicting reports on what it might do have stoked much uncertainty. China stocks edged higher on Monday, as investors returning from a long holiday drew optimism from surveys showing improving business confidence. The People's Bank of China published surveys on Sunday showing business confidence among entrepreneurs in China had picked up for the second quarter in a row in 2016. Both the blue-chip CSI300 index and the Shanghai Composite Index gained 0.8 percent to 3,263.12 and 3,026.05 points, respectively. China's markets were closed on Thursday and Friday. In South Korea, the Kospi traded up 0.82 percent at 2,015.78, after being closed on Friday for a public holiday. Meanwhile, Australian stock market was suspended for the rest of the trading day, after a technical glitch delayed the open earlier and then halted trade in the afternoon. Elsewhere, the Japanese market was closed Monday for a public holiday. Page 1 of 6
2. TA Securities 20-Sep-16 A Member of the TA Group Wall Street Ends Little Changed U .S. equities closed mostly flat on Monday after a choppy session, as investors geared up for two key central bank meetings. The U.S. Federal Reserve and the Bank of Japan are both scheduled to deliver their latest decision in monetary policy Wednesday. Market expectations for a Fed rate hike this week were relatively low. Traders are betting that there is only a 12-percent chance the Fed will raise interest rates this week, but see a 55-percent chance the central bank will do so in December, according to the CME's Fed-Watch website. On oil front, U.S. crude prices rose 0.63 percent to settle at USD43.30 per barrel, after gaining more than 2 percent, as shipment was delayed after fighting engulfed Libya’s key Eastern crude-oil ports over the weekend. Investors are also watching mixed signals from the Organization of the Petroleum Exporting Countries and other oil-producing nations ahead of an informal meeting next week. Energy shares slipped 0.1 percent, pulling back as oil prices pared gains during the session. Apple shares shed 1.2 percent after registering huge gains last week. The stock was the biggest drag on the three major U.S. indexes. The Dow Jones industrial average fell 3.63 points, or 0.02 percent, to 18,120.17, the S&P 500 lost 0.04 points, to 2,139.12 and the Nasdaq Composite dropped 9.54 points, or 0.18 percent, to 5,235.03. Page 2 of 6
3. TA Securities 20-Sep-16 A Member of the TA Group News In Brief Corporate Petroliam Nasional Bhd and Azerbaijan ’s state oil company Socar have signed a memorandum of understanding for the exploration, development and production of hydrocarbons at a block in the prospective offshore structure Goshadash in the Caspian Sea. (The Star) IHH Healthcare Bhd has accepted a committed unsecured multi-currency 5-year revolving credit facility equivalent to SGD1.8bn (RM5.4bn). The facility involves Singapore Dollars, Hong Kong Dollars and United States Dollars. Among others, it would be utilized for refinancing an existing SGD620.mn (RM1.9bn) facility, working capital requirements, and the investments and projects of Parkway Pantai Limited and its subsidiaries. (Bursa Malaysia) Saudi Telecom Co is purported to be exploring options for its indirect stake in billionaire T. Ananda Krishnan’s Maxis Bhd, the second-largest Malaysian wireless carrier by market value. It has a 25% holding in Binariang GSM Sdn Bhd, which is the controlling shareholder of Maxis Bhd. (The Edge) Linde Malaysia Sdn Bhd (Linde) and Petronas Gas Bhd's joint venture company Pengerang Gas Solution (PGS) was awarded long-term gas supply contracts for the Pengerang Integrated Petroleum Complex (PIPC) in Johor. Linde said PGS will build two large air separation units and associated gas facilities worth EUR150.0mn to produce oxygen and nitrogen gases for the PIPC. (Bernama) PPB Group Bhd’s wholly-owned subsidiary FFM Bhd aims to ramp up the production capacity of its value-added chicken products from 10,000 tonnes to 80,000 tonnes within three years via its partnership with Brazilian food giant BRF SA. (The Edge) AirAsia Bhd has incorporated a wholly-owned subsidiary company in Singapore known as AirAsia Pte Ltd. The principal activity of AirAsia Pte Ltd. is airlines operation services. (Bursa Malaysia) Berjaya Sports Toto Bhd’s 1QFY17 PBT declined by 14.7% YoY to RM96.4mn. The decrease in PBT was mainly due to the results of H.R. Owen as well as the foreign exchange effect recognized by a foreign subsidiary company during the current quarter but partially set off by improved results reported by Sports Toto Malaysia Sdn Bhd. A first interim single tier dividend of 4.0sen per share was declared. (Bursa Malaysia) Mah Sing Group Bhd is urging the government to consider several initiatives including relaxing loan approvals in Budget 2017 for first-time home buyers and provide up to 95% financing for first homes, 90% for second homes and 70% for third homes. (Bernama) Malaysia Marine and Heavy Engineering Holdings Bhd has successfully made its inaugural issuance of RM20.0mn in nominal value Sukuk Murabahah with a tenure of one year under the RM1.0bn Sukuk Murabahah Programme. (Bursa Malaysia) The joint liquidators of Sona Petroleum Bhd has planned to distribute 97% of the monies held in the special purpose acquisition company’s cash trust account to eligible shareholders by November. The balance 3% of the monies will be distributed within two years from the first distribution. Based on the total gross amount of monies held in the cash trust account of RM543.3mn, this is equivalent to a gross distribution value of 49.38sen per share. (The Edge) Iris Corporation Bhd has entered into a Memorandum of Understanding with Qingjian International Group Co Ltd, a known Chinese contractor, to set out their mutual understandings and intention towards forming a special purpose joint venture company to Page 3 of 6
4. TA Securities 20-Sep-16 A Member of the TA Group undertake the proposed development of Perumahan Penjawat Awam 1Malaysia and mixed development at Plot 19RK1 , 19RK2 and 19RK3 in Putrajaya. (Bursa Malaysia) Comment: We are positive on the MOU announcement. The potential formation of a special purpose joint venture company will help IRIS spread potential risks related to the PPA1M project. As previously highlighted, the construction of PPA1M residential houses (1,928 units) is not profit oriented, with the group receiving land in compensation to carry out the development of residential houses (508 units) and commercial buildings (22 units) for open sale. If take up of the properties are poor, profits related to the project may be realised over a longer period of time. As a known contractor and given IRIS’ relative experience, we believe QingJian International Group can bring along valuable expertise and knowledge in construction and property development to the project. Nonetheless, due to the scarcity of details at this juncture (such as share of JV, funding structure, project commencement date), we leave our earnings estimates unchanged. Maintain HOLD on IRIS with a TP of RM0.19/share. Poh Huat Resources Holdings Bhd is acquiring a detached warehouse cum officeshowroom in South Dandenong, Victoria, Australia for AUD4.3mn. The acquisition is the first step for the group to establish an operational base in Australia. With this facility, the group can efficiently consolidate the export and storage of a wider ranges of office and home furniture in smaller quantity to suit the market demand of Australia. (Bursa Malaysia) AIC Corporation Sdn Bhd and AIC Technology Sdn Bhd, both wholly owned subsidiaries of Globaltec Formation Bhd (GFB) together with Atmel Corporation had entered into a term sheet with Suzhou Good-Ark Electronics Co Ltd for the disposal of their 92% equity interest in AIC Semiconductor Sdn Bhd. The intended disposal will enable GFB to dispose of a loss making subsidiary and redeploy the cash proceeds into its remaining core businesses. (Bursa Malaysia) Messrs Ernst & Young, the external auditors of StemLife Bhd had expressed a qualified opinion in their auditors’ report on the audited financial statements of the group for the financial period ended 30 June 2016. In its report, the external auditors stated that it could not obtain sufficient appropriate audit evidence from the group’s share of results for the period ended 30 June 2016, and the years 31 December 2013 and 2014. (Bursa Malaysia) Tanjung Offshore Bhd had acquired a 67% equity interest in Hills Education Group Sdn Bhd for RM167.5k. The acquisition is to enable the group to venture into education and training development business. (Bursa Malaysia) NWP Holdings Bhd is keen to appoint China-based contractors for the RM745.0mn affordable housing projects for which it had signed a turnkey construction heads of agreement earlier this month. The group shared that it is mainly in discussion with government-linked companies from China that need a job now. (The Edge) Kuantan Flour Mills Bhd announced that in the event the claim on retrenchment benefits by its staff is successful, the group will incur an estimated one-time cost of RM1.7mn and its current prolonged loss situation will be further aggravated. However, it will not have any great impact to the group’s current operation which is currently at very minimal level. (Bursa Malaysia) Page 4 of 6
5. TA Securities 20-Sep-16 A Member of the TA Group News In Brief Economy Asia China ’s Home Prices Rise Most in Six Years as Sales Gain Chinese home prices rose the most in more than six years last month, suggesting local government efforts to avert a housing bubble are having only a limited effect. New-home prices, excluding government-subsidized housing, in August gained in 64 of the 70 cities the government tracks, compared with 51 in July, the National Bureau of Statistics said. Prices fell in four cities, compared with 16 a month earlier, and were unchanged in two. Average new-home prices in the 70 cities rose 1.2% in August from July, the biggest increase since January 2010, according to Bloomberg calculations based on the government data. The value of home sales jumped 33% last month from a year earlier, the fastest pace in four months. The jump in home prices comes in spite of lending curbs which have spread from major cities such as Shanghai and Shenzhen to regional hubs. That may lead to further restrictions as policymakers become increasingly concerned about averting an asset bubble, said Xia Dan, a Shanghai-based analyst at Bank of Communications Co. Hangzhou, Zhejiang’s provincial capital, on Sunday halted home sales to some non-local residents, adding to similar restrictions introduced last month in Suzhou and Xiamen. China’s top leaders, after a Politburo meeting led by President Xi Jinping, in July pledged to curb asset bubbles amid a renewed focus on financial stability. Prices climbed a record 4.4% and 3.6% in Shanghai and Beijing respectively, taking the year-on-year gains to 31% and 24%. Values rose 2.1% in Shenzhen and 2.4% in Guangzhou, both faster than a month earlier. Home prices climbed the fastest in regional hubs where local authorities haven’t introduced curbs. Zhengzhou, the provincial capital of central Henan province, led gains with a 5.5% increase, up from a 2% gain in July. Prices in Wuxi, a manufacturing base in southern Jiangsu province, followed with a 4.9% gain, compared with 2.7% a month earlier. (Bloomberg) BoJ May Shift Policy Focus to Rates as Monetary Firepower Wanes The Bank of Japan (BoJ) could shift negative interest rates to the primary focus of its monetary policy on Wednesday, heightening market disquiet over what any move away from quantitative easing reveals about the waning firepower of global central banks. With three years of massive money printing failing to push up inflation, the BoJ is expected to move away from shock therapy and towards a protracted battle against deflation, say sources familiar with its thinking. The BoJ's "quantitative and qualitative easing" (QQE) has been a signature policy of governor Haruhiko Kuroda since 2013 that aimed to shock the economy out of stagnation and change households' deflationary mindsets. While the central bank is unlikely to ditch QQE completely, altering its emphasis would herald an end to the "shock and awe" approach that made Kuroda's policies unique compared with the gradualist approach preferred by his predecessors. A less aggressive approach would also come as a world of tame growth and low inflation force the US Federal Reserve to go slow on raising interest rates and the European Central Bank to concede the limits of what monetary policy alone can achieve. Policymakers got a taste of how markets might react last week when investors’ dumped longer-dated bonds on fears the BoJ would slow its purchasing pace. (The Star Online) U.S. Homebuilder Sentiment Jumps to 65 in September, Highest Level in Nearly a Year Americans are making more money, and that is making the nation's homebuilders feel a lot better about their business. A monthly survey of builder confidence jumped a striking six points in September to the highest level in nearly a year. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) hit 65; anything above 50 is considered positive sentiment. August's reading was revised down one point. The index stood at 61 one year ago. "As household incomes rise, builders in many markets across the nation are reporting they are seeing more serious buyers, a positive sign that the housing market continues to move forward," said NAHB Chairman Ed Brady, a homebuilder and developer from Bloomington, Ilinois. "The single-family market continues to make gradual gains and we expect this upward momentum will build throughout the remainder of the year and into Page 5 of 6
6. TA Securities 20-Sep-16 A Member of the TA Group 2017 ." Of the index's three components, current sales rose six points to 71, sales expectations in the next six months rose five points also to 71. Buyer traffic jumped four points but still stands just below positive territory at 48. Home sales are usually strongest in the spring and fall, but Bob Youngentob, president and co-founder of EYA, a developer in the Washington, D.C. metropolitan area, said he was surprised at the uptick this summer. (CNBC News) Europe Eurozone Current Account Surplus Shrinks in July The euro area current account surplus declined notably in July from a month ago, the European Central Bank reported. The seasonally and working-day-adjusted current account surplus fell to EUR 21.0 billion in July from EUR 29.5 billion in June, which was revised down from EUR 28.2 billion surplus reported earlier. It was also the below the surplus of EUR 26.7 billion in the corresponding month last year. The surplus on goods trade shrank to EUR 26.4 billion in July from EUR 32.3 billion in the preceding month. Similarly, the surplus on services dropped to EUR 4.9 billion from EUR 6.9 billion. At the same time, the primary income grew to EUR 3.4 billion from EUR 0.5 billion. In contrast. The deficit in secondary income widened to EUR 13.7 billion from EUR 10.1 billion. The cumulated current account for the 12 months to July period showed a surplus of EUR 343.2 billion, equivalent to 3.0% of euro area GDP. Separately, Eurozone construction output growth improved strongly in July, marking a second month of growth after three months of decline, preliminary data from Eurostat showed. Construction output increased a calendar-adjusted 3.1% year-on-year following 0.6% increases in June. The latest gain was the strongest since February, when output rose 3.6%. Building construction grew 3.2% and civil engineering work increased 2.9%. Among member states, the biggest increases were recorded in Spain, Sweden and France, while the largest decreases were observed in Slovakia, Hungary and Poland. On a month-on-month basis, construction output rose 1.8% in July after a 0.3% increase in the previous month, revised from a flat reading. The gain was the strongest since January, when output climbed 2%. Building construction grew 2.2% and civil engineering work gained 0.4%. In the EU 28, construction output increased 1% annually and 1.1% monthly in July. (RTT News) Share Buy-Back: 19 Sept 2016 Company Bought Back CCK E&O FIAMMA FITTERS GRANFLO LIONIND MYEG PARKSON SEM TEXCHEM YILAI 45,000 2,265 300,000 150,000 15,000 50,000 200,000 280,000 1,000,000 100 5,000 Price (RM) Hi/Lo (RM) 0.54/0.535 1.69/1.68 0.56 0.42/0.415 0.21 0.385/0.38 2.16 0.80/0.795 1.50 1.59 0.83 0.54/0.53 1.68/1.67 0.56 0.42/0.41 0.21 0.39/0.38 2.18/2.14 0.81/0.79 1.51/1.49 1.59/1.54 0.83 Total Treasury Shares 1,348,000 5,098,857 6,000,000 5,045,900 4,726,200 27,811,500 3,876,800 11,886,880 87,000,000 2,378,800 3,902,508 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. 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 6 of 6
7. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company AUTOMOBILE BJAUTO MBMR UMW Share Price (RM) 19-Sep-16 2.25 2.50 5.70 BANKS & FINANCIAL SERVICES AFG 3.85 AFFIN 2.10 AMBANK 4.16 CIMB 4.65 HLBANK 12.86 MAYBANK 7.83 PBBANK 19.48 4.71 RHBBANK BURSA 8.81 Target Price BETA (RM) EPS (sen) FY16 FY17 PER (X) FY16 FY17 Div Yield (%) FY16 FY17 % Chg YTD 2.57 2.30 4.78 1.03 0.72 1.12 17.3 24.1 -4.0 17.5 25.2 27.2 13.0 10.4 na 12.9 9.9 20.9 7.5 2.4 0.0 6.2 2.4 3.2 2.44 2.96 8.75 -7.8 -15.5 -34.9 1.73 1.94 4.88 30.0 28.9 16.8 8.7 4.2 -27.6 3.90 2.70 4.90 5.90 13.40 8.40 20.60 5.40 9.30 1.10 0.87 1.21 1.17 0.67 0.97 0.86 1.16 0.65 34.2 22.7 43.2 42.8 92.8 61.2 131.2 48.9 37.1 36.0 23.2 46.8 51.7 101.7 74.8 137.4 53.7 41.7 11.2 9.3 9.6 10.9 13.9 12.8 14.8 9.6 23.7 10.7 9.1 8.9 9.0 12.6 10.5 14.2 8.8 21.1 3.8 2.2 3.7 3.8 3.2 5.7 2.9 2.5 3.9 3.9 2.2 3.8 4.6 3.2 6.1 2.9 2.5 3.9 4.37 2.50 5.05 5.03 13.86 9.20 19.96 5.18 9.43 -11.9 -16.0 -17.6 -7.6 -7.2 -14.9 -2.4 -9.1 -6.6 3.07 2.08 4.15 3.89 12.56 7.75 17.30 3.85 7.82 25.4 1.0 0.2 19.7 2.4 1.0 12.6 22.2 12.7 8.1 -10.3 -8.2 3.6 -4.3 -6.8 5.2 8.0 5.5 0.49 3.04 -19.4 -1.0 0.36 1.27 9.7 137.0 -8.1 42.0 5.00 3.61 0.92 1.72 1.76 5.97 -3.4 -8.5 -44.0 -5.2 -6.8 -3.2 4.29 3.07 0.41 1.14 1.31 4.90 12.6 7.4 27.2 43.0 25.2 18.0 3.6 -1.5 -32.7 16.4 1.9 15.6 2.45 -17.6 1.99 1.5 -11.8 CONSTRUCTION BPURI 0.40 0.44 0.94 5.2 6.2 7.6 6.3 0.0 0.0 GADANG 3.01 3.01 0.94 36.4 32.3 8.3 9.3 2.3 2.3 Note: GADANG proposed bonus issue shares & warrants. For more detail please refer to 26.08.16 report. GAMUDA 4.83 5.58 1.00 25.6 33.4 18.9 14.5 2.5 2.5 IJM 3.30 3.23 0.96 13.6 16.9 24.2 19.6 3.0 2.9 SENDAI 0.52 0.66 1.25 11.3 11.0 4.5 4.7 1.0 1.9 SUNCON 1.63 1.80 na 11.2 12.0 14.6 13.6 3.1 3.4 WCT 1.64 1.54 1.10 10.4 13.1 15.7 12.5 1.8 1.8 LITRAK 5.78 5.58 0.25 33.2 47.7 17.4 12.1 4.3 4.3 Building Materials WTHORSE 2.02 2.32 0.49 18.5 23.2 10.9 8.7 5.0 5.0 CONSUMER Brewery CARLSBG HEIM Retail AEON AMWAY F&N NESTLE PADINI POHUAT QL SIGN Tobacco BAT 52weeks 52weeks High Price % Chg Low Price % Chg 14.48 17.72 15.52 19.73 0.63 0.58 72.6 85.8 76.9 90.1 20.0 20.7 18.8 19.7 5.0 4.4 5.3 4.6 15.20 18.74 -4.7 -5.4 11.30 12.63 28.1 40.3 23.8 36.7 2.91 8.65 24.44 79.90 2.91 1.55 4.33 0.93 2.55 8.00 25.62 88.16 4.00 2.05 4.91 1.62 0.73 0.42 0.44 0.43 0.64 0.77 0.64 0.78 7.1 33.0 117.5 325.5 20.9 22.5 15.4 11.0 7.2 35.3 122.0 343.1 23.6 22.6 19.0 15.9 41.0 26.2 20.8 24.5 13.9 6.9 28.1 8.4 40.7 24.5 20.0 23.3 12.4 6.9 22.8 5.8 0.7 3.0 3.4 4.1 4.1 5.2 1.0 13.0 0.7 3.2 3.5 4.1 5.2 5.2 1.2 5.9 3.00 10.15 27.00 81.80 3.08 2.12 4.65 1.31 -3.0 -14.7 -9.5 -2.3 -5.5 -26.9 -6.9 -29.1 2.47 8.56 17.80 70.81 1.34 1.37 3.96 0.72 17.8 1.1 37.3 12.8 116.9 13.1 9.3 28.3 6.6 -7.7 32.1 9.2 56.6 -24.4 0.9 10.2 49.24 56.00 0.94 248.5 278.0 19.8 17.7 4.9 5.5 64.64 -23.8 40.70 21.0 -12.2 7.81 4.61 8.81 4.89 1.27 1.15 35.3 25.4 41.6 24.5 22.1 18.1 18.8 18.8 0.5 1.7 0.6 1.7 9.90 4.64 -21.1 -0.6 6.91 3.85 13.0 19.7 6.4 5.3 3.32 0.06 4.03 0.10 0.75 0.82 23.6 0.1 24.6 0.2 14.0 58.1 13.5 30.4 5.7 0.0 6.3 0.0 3.47 0.10 -4.3 -36.8 2.88 0.06 15.3 0.0 8.9 -25.0 6.58 4.20 6.55 4.75 0.87 0.58 11.7 13.0 15.1 15.6 56.2 32.2 43.7 27.0 0.4 1.3 0.6 1.5 6.79 4.40 -3.1 -4.5 5.79 4.11 13.6 2.2 0.0 -0.5 4.42 6.40 2.12 4.67 2.39 4.10 7.25 2.20 5.20 2.70 0.55 0.15 0.75 -0.01 0.48 15.6 33.1 15.2 29.3 6.7 17.7 38.1 19.5 27.8 7.4 28.3 19.3 13.9 16.0 35.6 25.0 16.8 10.9 16.8 32.2 1.7 2.6 2.2 3.2 0.7 1.8 3.0 2.8 3.0 0.8 6.15 9.50 3.56 7.03 3.16 -28.1 -32.6 -40.4 -33.6 -24.4 3.81 5.90 1.93 3.71 2.05 16.0 8.5 9.8 25.8 16.8 -25.6 -31.2 -34.6 -31.1 -13.2 INDUSTRIAL SCIENTX SKPRES 6.18 1.27 8.47 1.80 0.59 0.80 55.1 7.0 66.4 10.6 11.2 18.2 9.3 12.0 2.6 2.6 3.1 3.9 6.80 1.48 -9.1 -14.2 3.50 1.12 76.8 13.4 26.8 -3.1 MEDIA ASTRO MEDIA PRIMA STAR 2.88 1.30 2.50 3.40 1.25 2.00 0.97 0.87 0.61 12.6 10.6 12.6 11.9 11.1 15.3 22.8 12.3 19.9 24.1 11.7 16.3 4.2 6.5 7.2 4.3 6.9 7.2 3.03 1.54 2.70 -5.0 -15.6 -7.4 2.41 1.14 2.27 19.5 14.0 10.1 4.3 2.4 6.8 OIL & GAS EATECH MHB MISC PANTECH PCHEM PERISAI SKPETRO UMWOG UZMA 0.78 1.00 7.50 0.55 6.50 0.13 1.53 0.88 1.68 0.90 1.07 8.07 0.59 7.40 0.22 1.46 0.60 2.09 na 1.79 0.83 1.18 1.26 2.07 2.30 1.94 1.93 14.6 5.0 57.9 5.9 30.6 0.4 16.8 -14.7 12.8 11.3 5.5 57.7 6.5 31.3 -0.5 2.1 -6.5 18.2 5.3 20.0 13.0 9.2 21.3 29.8 9.1 na 13.1 6.9 18.3 13.0 8.4 20.7 na 71.2 na 9.2 5.6 0.0 4.0 5.0 2.4 0.0 0.9 0.0 0.0 4.4 0.0 4.0 4.8 2.5 0.0 0.0 0.0 0.0 1.39 1.34 9.41 0.69 7.62 0.39 2.29 1.44 2.36 -44.2 -25.4 -20.3 -20.8 -14.7 -67.9 -33.2 -38.9 -28.8 0.75 0.88 6.88 0.54 5.95 0.13 1.29 0.88 1.61 4.0 14.3 9.0 1.9 9.2 0.0 18.6 0.6 4.3 -30.2 0.0 -20.0 -11.2 -10.6 -55.4 -24.3 -17.8 -16.0 GAMING Casino GENTING GENM NFO BJTOTO LUSTER HEALTHCARE Hospitals IHH KPJ Rubber Gloves HARTA KOSSAN SUPERMX TOPGLOV KAREX
8. For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE Company Share Price (RM) PLANTATIONS FGV IJMPLNT IOICORP KLK SIME UMCCA 2.25 3.27 4.42 23.80 7.65 5.72 Target Price BETA (RM) 1.61 3.50 3.74 20.05 7.94 6.56 1.54 0.72 1.07 1.07 1.11 0.50 EPS (sen) FY16 FY17 PER (X) FY16 FY17 2.8 4.6 13.2 84.6 27.5 22.3 79.4 71.4 33.6 28.1 27.8 25.7 6.8 13.7 19.2 105.5 37.3 29.3 33.3 23.9 23.0 22.5 20.5 19.5 Div Yield (%) FY16 FY17 1.8 1.8 1.8 3.0 3.5 2.8 2.2 2.1 2.5 2.4 3.4 1.9 52weeks 52weeks High Price % Chg Low Price % Chg 2.39 3.80 5.04 25.00 9.10 6.21 PROPERTY GLOMAC 0.77 0.80 0.59 10.0 9.9 7.7 7.7 5.2 5.2 0.94 HUAYANG 1.85 1.87 0.70 41.7 26.4 4.4 7.0 2.0 2.2 1.94 Note: HUAYANG proposed bonus issue shares on the basis of 1 for 3. For more detail please refer to 19.05.16 report. IOIPG 2.62 2.52 1.01 15.8 16.9 16.6 15.5 3.1 3.2 2.65 MAHSING 1.60 1.72 0.61 14.9 15.7 10.8 10.2 3.8 3.8 1.66 SNTORIA 0.84 0.84 0.50 5.8 9.5 14.6 8.9 2.4 2.4 1.00 SPSETIA 3.27 3.24 0.58 26.9 24.9 12.2 13.1 4.0 3.7 3.49 SUNWAY 3.10 3.33 0.54 28.2 29.0 11.0 10.7 3.7 3.7 3.28 REIT SUNREIT 1.70 1.78 0.49 8.9 8.9 19.1 19.2 5.4 5.2 1.79 CMMT 1.51 1.81 0.67 8.2 8.7 18.3 17.4 5.8 6.1 1.61 % Chg YTD -5.9 -13.9 -12.3 -4.8 -15.9 -7.9 1.31 3.08 3.78 21.04 7.00 5.54 71.8 6.2 16.9 13.1 9.3 3.2 31.6 -7.9 -0.9 4.0 -1.3 -5.6 -18.2 -4.6 0.70 1.70 9.3 8.8 -12.1 0.0 -1.1 -3.6 -16.0 -6.3 -5.6 1.86 1.24 0.74 2.80 2.87 40.9 29.0 14.3 16.8 8.0 16.4 10.3 -9.7 2.2 0.6 -5.0 -6.2 1.43 1.34 18.9 12.7 16.4 9.4 POWER & UTILITIES MALAKOF PETDAG PETGAS TENAGA YTLPOWR 1.64 23.34 21.50 14.42 1.58 1.90 18.51 19.70 16.87 1.84 na 0.88 0.91 1.08 0.58 10.5 88.1 93.0 142.0 11.2 11.6 90.4 93.7 129.1 9.2 15.6 26.5 23.1 10.2 14.1 14.2 25.8 22.9 11.2 17.2 4.5 2.5 2.2 2.2 6.3 4.9 2.9 2.8 2.1 6.3 1.80 26.30 23.64 14.90 1.62 -8.9 -11.3 -9.1 -3.2 -2.5 1.50 21.50 20.54 11.88 1.38 9.3 8.6 4.7 21.4 14.5 2.5 -6.1 -5.3 8.3 6.8 TELECOMMUNICATIONS AXIATA DIGI MAXIS TM 5.27 4.81 6.15 6.70 5.95 4.95 5.80 8.30 0.99 0.99 0.67 0.74 19.3 21.1 23.8 20.4 21.2 21.2 24.7 26.1 27.3 22.8 25.8 32.8 24.8 22.7 24.9 25.7 3.0 4.4 3.1 2.7 3.3 4.4 3.2 3.5 6.53 5.81 6.92 7.00 -19.3 -17.2 -11.1 -4.3 5.18 4.31 5.36 6.31 1.7 11.6 14.7 6.2 -17.8 -10.9 -9.6 -1.2 TECHNOLOGY Semiconductor & Electronics IRIS 0.17 INARI 3.35 MPI 8.05 UNISEM 2.66 0.19 3.40 8.85 2.85 1.08 0.97 0.77 0.84 0.7 15.5 85.9 21.4 0.7 20.3 80.4 24.4 24.7 21.6 9.4 12.4 23.1 16.5 10.0 10.9 0.0 2.5 2.9 4.5 2.7 2.3 2.9 4.5 0.28 3.96 10.70 2.77 -40.0 -15.4 -24.8 -4.0 0.13 2.57 6.50 1.86 26.9 30.4 23.8 43.0 -25.0 -8.6 -13.5 11.8 2.83 6.50 3.18 6.35 1.14 1.44 53.3 2.8 42.4 8.5 5.3 231.4 6.7 76.5 1.4 1.2 1.4 1.4 3.30 6.97 -14.2 -6.7 1.20 4.87 135.8 33.5 119.4 15.9 1.61 4.42 2.03 4.82 0.89 0.64 12.0 18.2 21.8 19.3 13.4 24.3 7.4 22.9 3.1 3.1 3.4 3.3 1.74 4.59 -7.5 -3.7 1.03 3.62 56.3 22.1 17.5 7.3 TRANSPORTATION Airlines AIRASIA AIRPORT Freight & Tankers TNLOGIS WPRTS SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price (S$) BANKS & FINANCIAL SERVICES DBS 15.19 OCBC 8.61 UOB 18.81 PLANTATIONS WILMAR IFAR 3.14 0.45 Target Price Beta (S$) FY16 FY17 FY16 FY17 FY16 FY17 52week 52week High Price % Chg Low Price % Chg % Chg YTD 16.70 8.60 19.80 1.17 1.11 1.08 175.6 88.4 202.7 186.7 88.7 216.5 8.6 9.7 9.3 8.1 9.7 8.7 3.9 5.7 3.7 3.9 5.7 3.7 18.25 9.60 20.57 -16.8 -10.3 -8.6 13.01 8.84 16.80 16.8 16.2 12.0 -9.0 -2.2 -4.1 3.45 0.48 0.93 1.13 20.0 2.4 28.3 3.7 15.7 18.5 11.1 12.1 1.6 0.5 2.5 0.8 3.75 0.63 -16.3 -28.6 2.55 0.82 3.8 0.6 6.8 -8.2 BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 10% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.