Malaysia Market Insight - 30 March

Transcription

1. Market Insight Thursday , 30 March, 2017 Research Team research@bimbsec.com.my 03-2613 1739 PP16795/03/2013(031743) www.bisonline.com Corporate News Economic News          KLCI Performance 12,846.27 3.94 0.03 FBM Hijrah Shariah 14,171.88 0.73 0.01 Volume (m) 3,398.92 331.57 10.81 Value (MYR m) 2,631.22 213.39 8.83 FBMKLCI YTD performance 6.62 Mar-17 -0.09 FBMEMAS Shariah Feb-17 -11.09 Jan-17 12,067.68 Dec-16 -0.07 FBM100 Nov-16 -0.23 -8.47 Oct-16 -4.01 12,414.00 Sep-16 1,750.41 FBMEMAS 1770 1750 1730 1710 1690 1670 1650 1630 1610 1590 1570 Aug-16 Change % Jul-16 Change +/- Jun-16 Close May-16 FBMKLCI Apr-16 Bursa Malaysia International Energy Agency and ADB commit to step up cooperation Oil rises again on view that supplies should tighten US pending home sales surge to ten-month high ahead of spring Banks reassure London staff over possible Brexit disruption China, EU reaffirm climate action after Trump backs away Mar-16   Metronic to spend RM75m on mixed development project QL sells remaining stake in property arm for RM7.3m KFM announces private placement Paramount Corp to raise up to RM200m via sukuk for new uni campus Yen Global 2Q net loss narrows on CNY sales Subur Tiasa sinks further into the red in 2Q on lower oil palm output KLCI Year-End Target: 1,755 points Source: Bloomberg, BIMB Securities Research Source: Bloomberg, BIMB Securities Research Regional Indices DJIA Commodities (Last Close) Close Change +/- Change % YTD Change (%) Close Change +/- Change % 20,659.32 -42.18 -0.20 4.54 Brent Crude (USD/bbl) 52.42 1.09 2.12 NASDAQ 5,897.55 22.41 0.38 9.56 WTI Crude (USD/bbl) 49.51 1.14 2.36 S&P 500 2,361.13 2.56 0.11 5.46 CPO (RM/MT) 2,721.00 14.00 0.52 FTSE 100 7,373.72 30.30 0.41 3.23 Gold (USD/ounce) 1,253.16 -0.36 -0.03 Nikkei 225 19,217.48 14.61 0.08 0.54 Latex (sen/kg) 688.50 -6.00 -0.86 HSI 32.21 -0.26 -0.80 24,392.05 46.18 0.19 10.87 SHCOMP 3,241.31 -11.63 -0.36 4.44 KOSPI 2,166.98 3.67 0.17 6.93 Forex TWSE 9,856.25 -20.20 -0.20 6.51 (per USD) STI 3,184.57 26.75 0.85 10.55 MYR 4.20 4.42 0.0063 0.14 JCI 5,592.51 51.31 0.93 5.58 JPY 110.0 111.04 -0.1100 -0.10 SET 1,574.97 -1.75 -0.11 2.08 EUR 0.93 0.93 0.0042 0.45 PSEi 7,324.00 -7.46 -0.10 7.07 SGD 1.45 1.39 -0.0039 -0.28 Source: Bloomberg, BIMB Securities Research www.bimbsec.com.my www.bimbsec.com.my Soybean Oil Source: Bloomberg, BIMB Securities Research BIMB (YE Forecast) Close Change +/- Change % Source: Bloomberg, BIMB Securities Research 1
2. Market Insight Major Rates Daily Participation % KLIBOR 3-mth KLIBOR 6-mth KLIBOR 12-mth 5-yr MGS 10-yr MGS 3.41 3.53 3.62 3.82 4.13 Local Insti Local Retail Foreign Total Participation (%) Bought (MYR m) Sold (MYR m) Net (MYR m) 58.6 20.0 21.4 100.0 1455.7 523.3 652.3 2,631.3 1,631.4 527.0 472.9 2,631.3 -175.7 -3.7 179.4 0.0 Source: Bank Negara Malaysia Source: The Sun, BIMB Securities Research Performance of BIMB Stock Coverage Top Gainers Xin Hwa Barakah Offshore Petroleum Eversendai Econpile Tambun Indah Top Losers Close 1.11 0.66 0.69 2.21 1.48 Change +/0.07 0.03 0.02 0.06 0.04 Change % 6.7% 4.0% 3.0% 2.8% 2.8% Source: Bloomberg, BIMB Securities Research www.bimbsec.com.my Caring Pharmacy MCT Sunway Construction Scomi Energy Services Hartalega Close 1.34 1.10 1.75 0.22 4.85 Change +/-0.08 -0.04 -0.05 -0.01 -0.09 Change % -5.6% -3.5% -2.8% -2.3% -1.8% Source: Bloomberg, BIMB Securities Research |2
3. Market Insight CORPORATE NEWS Metronic to spend RM75m on mixed development project Metronic expects to spend RM75m to develop a residential-cum-commercial project on the four adjacent plots of land in Cheras that it is acquiring . The expected commencement date is 2 years from the sales and purchase agreement date or when market conditions are better, and the expected completion date of development is 3 years from the commencement of construction of each phase of the project. Metronic is acquiring the 4 leasehold plots measuring a total of 2,262.77 square metres and located near Cheras Business Centre, Pantai Cheras Medical Centre and Leisure Mall Shopping Complex for RM7.8m. The group plans to build an 18-storey service apartment with 88 units of service apartments and 13 units of shop lots on the land. (Source: The Edge) QL sells remaining stake in property arm for RM7.3m QL Resources has disposed of its remaining shareholding of about 38% in QL KK Properties SB for a cash consideration of about RM7.3m, in line with the group’s strategic review to focus on its core business. The proposed disposal is an opportunity for QLF to realize the gains from QLF’s investment in QL KK Properties. QL KK Properties is a wholly-owned subsidiary of QL Feedingstuffs Sdn Bhd (QLF), which is wholly-owned by QL Resources. On March 17 this year, QLF has already disposed of about 61.97% equity interest in QL KK Properties to a related party, namely Ruby Technique SB for a cash consideration of RM11.8m. (Source: The Edge) KFM announces private placement, rights issue as part of regularisation plan Kuantan Flour Mills (KFM) plans a private placement of 20.46m shares and a rights issue of up to 221.74m shares to raise up to RM48.44m for debt repayment and working capital. The corporate exercises, part of its plan to regularise its financial condition, also involve restructuring its debts owing to creditors. The proposed plan would regularise its financial condition and return to profitability while reducing its liabilities and strengthening its cash flow position. (Source: The Edge) Paramount Corp to raise up to RM200m via sukuk for new uni campus Paramount Corp's wholly-owned subsidiary KDU University College (PG) SB will raise up to RM200m under a 15-year Islamic medium term notes programme (sukuk ijarah) to fund the development of a new university campus in Penang. KDU University College issued RM30m in nominal value of the sukuk today. The sukuk programme was duly lodged with the Securities Commission Malaysia on Feb 14. The proceeds raised from the Islamic medium term notes issued would be used to finance its RM230m new campus land and development at Batu Kawan in Seberang Perai Selatan, Penang, and payment of fees and expenses for the sukuk ijarah programme establishment. The sukuk's profit would be based on a fixed rate or floating profit rate basis, and determined prior to the issuance of the sukuk ijarah. (Source: The Edge) Yen Global 2Q net loss narrows on CNY sales Yen Global saw its net loss for the 2QFY17 narrow to RM1.99m or 1.45 sen per share, from RM2.25m or 1.81 sen per share a year earlier. Meanwhile, its 2QFY17 revenue was down 0.16% to RM5.11m from RM5.19m a year ago. The business environment did not see any upturn in sentiment but was sustained by festive sales arising from the Chinese New Year season. For the cumulative 6 months of FY17, it registered a lower net loss of RM3.83m or 2.79 sen a share compared to RM3.91m or 3.14 sen a share a year ago. Meanwhile, its revenue was 1.86% higher at RM11.2m from RM10.99m last year. Going forward, despite the weak market sentiment, Yen Global will continue to improve efficiency and reduce operational costs. (Source: The Edge) Subur Tiasa sinks further into the red in 2Q on lower oil palm output Subur Tiasa's net loss further deepened to RM8.84m in its 2QFY17 from RM1.81m a year earlier, on lower contribution from its oil palm segment. The group reported a 25% drop in revenue to RM121.23m from RM161.47m in 2QFY16. Subur Tiasa, which is a member of the Sarawak-based Rimbunan Hijau logging corporation, reported a bigger net loss of RM8.69m for the 1HFY17, compared with RM1.73m for 1HFY16. Its half year revenue decreased 15% to RM261.98m from RM306.68m a year ago. The drop in revenue earnings was primarily due to higher unit logging operational cost resulting from lower volume of logs harvested during the monsoon season. There was also lower profit contribution from the oil palm segment as a result of lower fresh fruit bunches (FFB) production (Source: The Edge) www.bimbsec.com.my |3
4. Market Insight ECONOMIC NEWS International Energy Agency and ADB commit to step up cooperation The International Energy Agency (IEA) and Asian Development Bank (ADB) have committed to expanding their cooperation in the fields of energy security analysis, data and modelling, and clean energy technology. The two international organisations formalised this agreement through a MoU signed IEA executive director Dr Fatih Birol and ADB President Takehiko Nakao. The agreement reflects the complementary nature of the goals and missions of both organizations, and seeks to bring the IEA’s technical energy expertise, data and analysis together with the ADB’s extensive energy sector lending and financing programmes in Asia. It also reflects the IEA’s strong commitment to working with key country partners in Asia, an area in which the Agency has had considerable recent success. (Source: The Edge) Oil rises again on view that supplies should tighten Oil prices rose nearly 2% as US crude inventories rose less than expected, supply disruptions continued in Libya and the OPEC-led output cut by producing countries looked likely to be extended. US crude futures surged to nearly a 2-week high after the Energy Information Administration (EIA) reported that crude inventories rose 867,000 barrels last week, nearly half the build expected, as refineries ramped up processing after seasonal maintenance and imports dropped and exports rose. Brent crude futures rose 90 cents, or 1.8%, to USD52.23 a barrel by 12:13 pm EDT (1613 GMT) after hitting a session high of USD52.35, the highest since March 16. US crude West Texas Intermediate (WTI) futures were up 90 cents, or 1.9%, at USD49.27 a barrel after hitting a high of USD49.37, also the highest since March 16. (Source: Reuters) US pending home sales surge to ten-month high ahead of spring Contracts to buy previously owned US homes jumped to a 10-month high in February, pointing to robust demand for housing ahead of the busy spring selling season. The National Association of Realtors suggested higher home prices and mortgage rates were having little impact on the housing market for now, underscoring the economy's resilience despite an apparent slowdown in growth in the first quarter. Contract signing last month was likely boosted by unseasonably warm temperatures. The gains reversed January's 2.8% drop. Pending home contracts become sales after a month or two, and last month's surge implied a pickup in home resales after they tumbled 3.7% in February. (Source: Reuters) Banks reassure London staff over possible Brexit disruption Banks in Britain have tried to reassure their London staff over possible Brexit disruption, including a shift in jobs to continental Europe. Investments banks Goldman Sachs and Nomura were among those who sent messages to employees in London, Europe's biggest financial centre, as they work out how to keep serving clients across the European Union after Britain leaves the bloc. Morgan Stanley also informed employees in Europe that no decisions had yet been made on changes for when Britain departs, leaving the EU with 27 member states. But Rob Rooney, CEO of Morgan Stanley International, was blunter in updating them on the work of a committee comprising senior leaders at the bank which has been making Brexit contingency plans for over a year. (Source: Reuters) China, EU reaffirm climate action after Trump backs away Nations led by China and the European Union rallied around a global plan to slow climate change on Wednesday after US President Donald Trump began undoing Obama-era plans for deep cuts in US greenhouse gas emissions. Trump's order on Tuesday, keeping a campaign promise to bolster the US coal industry, strikes at the heart of an international Paris Agreement in 2015 to curb world rd temperatures that hit record highs in 2016 for the 3 year in a row. Many nations reacted to Trump's plan with dismay and defiance, saying a vast investment shift from fossil fuels to clean energy such as wind and solar power is underway with benefits ranging from less air pollution to more jobs. (Source: Reuters) www.bimbsec.com.my |4
5. Market Insight ECONOMIC CALENDAR Date Time Country 03 /30/2017 09:00 03/30/2017 18:00 03/30/2017 18:00 03/30/2017 19:00 03/30/2017 20:30 03/30/2017 20:30 03/30/2017 20:30 03/31/2017 07:50 03/31/2017 07:50 03/31/2017 09:00 03/31/2017 09:00 03/31/2017 13:00 03/31/2017 14:00 03/31/2017 16:00 03/31/2017 16:00 03/31/2017 16:30 03/31/2017 16:30 03/31/2017 16:30 03/31/2017 20:30 03/31/2017 20:30 03/31/2017 20:30 03/31/2017 20:30 03/31/2017 21:45 03/31/2017 04/03/2017 07:30 04/03/2017 09:45 04/03/2017 15:00 04/03/2017 16:30 04/03/2017 21:45 04/03/2017 21:45 04/03/2017 22:00 04/03/2017 22:00 04/03/2017 22:00 04/03/2017 22:00 04/03/2017 04/08 04/03/2017 04/08 04/03/2017 04/07 04/04/2017 16:30 04/04/2017 20:30 04/04/2017 22:00 04/04/2017 22:00 04/05/2017 08:30 04/05/2017 08:30 04/05/2017 15:30 04/05/2017 15:30 04/05/2017 15:30 04/05/2017 15:30 04/05/2017 16:30 04/05/2017 16:30 04/05/2017 16:30 CH PO PO CZ US US US JN JN CH CH JN FI CZ SP UK UK UK US US US US US BP JN CH HU UK US US US US US US IR IR JN UK US DE DE JN JN SW SW SW SW UK UK UK www.bimbsec.com.my Event Swift Global Payments CNY Industrial Production MoM Industrial Production YoY Repurchase Rate GDP Annualized QoQ Personal Consumption GDP Price Index Industrial Production MoM Industrial Production YoY Manufacturing PMI Non-manufacturing PMI Construction Orders YoY Trade Balance Money Supply M2 YoY Current Account Balance Current Account Balance GDP QoQ GDP YoY PCE Deflator MoM PCE Deflator YoY PCE Core MoM PCE Core YoY Chicago Purchasing Manager Base Interest Rate Nikkei Japan PMI Mfg Caixin China PMI Mfg Trade Balance Markit UK PMI Manufacturing SA Markit US Manufacturing PMI Markit US Composite PMI ISM Manufacturing ISM Prices Paid ISM New Orders ISM Employment Industrial Production MoM Industrial Production YoY Official Reserve Assets Markit/CIPS UK Construction PMI Trade Balance Foreign Reserves Change in Currency Reserves Nikkei Japan PMI Services Nikkei Japan PMI Composite Industrial Production MoM Industrial Production NSA YoY Industrial Orders MoM Industrial Orders NSA YoY Markit/CIPS UK Services PMI Markit/CIPS UK Composite PMI Official Reserves Changes Period Survey Feb Feb Feb 30-Mar 4Q T 4Q T 4Q T Feb P Feb P Mar Mar Feb Jan F Feb Jan 4Q 4Q F 4Q F Feb Feb Feb Feb Mar Apr Mar F Mar Jan F Mar Mar F Mar F Mar Mar Mar Mar Feb Feb Mar Mar Feb Mar Mar Mar Mar Feb Feb Feb Feb Mar Mar Mar ---0.05% 2.00% 3.00% 2.00% 1.20% 3.90% 51.7 ------16.0b 0.70% 2.00% 0.10% 2.10% 0.20% 1.70% 56.9 --51.7 ----57 --------$46.4b ------------ Actual Prior Revised -1.68% ---0.50% --2.70% --0.05% --1.90% --3.00% --2.00% ---0.40% --3.70% --51.6 --54.2 --1.10% ---455m --8.40% --3.4b ---25.5b --0.70% --2.00% --0.40% --1.90% --0.30% --1.70% --57.4 --0.00% --52.6 --51.7 --658m --54.6 --53.4 --53.2 --57.7 --68 --65.1 --54.2 --3.40% ---9.40% --$1232.3b --52.5 ---$48.5b --466.6 --8.8b 8.7b -51.3 --52.2 --2.00% --1.30% ---2.60% --0.00% --53.3 --53.8 --$360m -Source: Bloomberg, BIMB Securities Research |5
6. Market Insight DEFINITION OF RATINGS BIMB Securities uses the following rating system : STOCK RECOMMENDATION BUY Total return (price appreciation plus dividend yield) is expected to exceed 10 in the next 12 months. TRADING BUY Share price may exceed 15 over the next 3 months, however longer-term outlook remains uncertain. HOLD Share price may fall within the range of +/- 10 over the next 12 months TAKE PROFIT Target price has been attained. Fundamentals remain intact. Look to accumulate at lower levels. TRADING SELL Share price may fall by more than 15 in the next 3 months. SELL Share price may fall by more than 10 over the next 12 months. NOT RATED Stock is not within regular research coverage. SECTOR RECOMMENDATION OVERWEIGHT The Industry as defined by the analyst’s coverage universe, is expected to outperform the relevant primary market index over the next 12 months NEUTRAL The Industry as defined by the analyst’s coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months UNDERWEIGHT The Industry as defined by the analyst’s coverage universe, is expected to underperform the relevant primary market index over the next 12 months Applicability of ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies. Disclaimer The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of BIMB Securities Sdn may from time to time have a position in or either the securities mentioned herein. Members of the BIMB and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgements as of this date and are subject to change without notice. BIMB Securities Sdn accepts no liability for any direct, indirect or consequential loss arising from use of this report. Published by BIMB SECURITIES SB (290163-X) A Participating Organisation of Bursa Malaysia Securities Level 32, Menara Multi Purpose, Capital Square, No. 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur Tel: 03-2613 1600 Fax: 03-2613 1799 http://www.bimbsec.com.my www.bimbsec.com.my Azharuddin Nordin Head of Research |6