Friday, May 29, 2015

Malaysia Daily, Maybank KE (2015-05-28)


Daily
28 May 2015
RESULTS REVIEW
Alliance Financial Group: Downgrade To Hold
FY15 results below expectations
  • FY15 core net profit (-5% YoY) below expectations at 92%/93% of our full-year forecast and consensus.
  • FY16/17 earnings trimmed by 5% respectively on lower NIM and NOII assumptions; payout ratio reduced to 45%.
  • TP lowered to MYR4.90 (-40sen) on new CY15 P/BV peg of 1.6x. Valuations fair downgrade to HOLD.
TIME dotCom: Maintain Hold
Results ahead; Vietnam foray  Shariah-compliant
  • 1Q15 net profit was better than expected as margins again surprised likely due to a favourable sales mix.
  • Regional plans gathering traction as company discloses interest in acquiring 25% stake in CMC Telecom for USD12m.
  • Maintain HOLD, SOP-based TP raised to MYR6.20 (from MYR5.50) on the back of earnings upgrades.
Genting Plantations: Maintain Buy
Weak FFB output, low ASP  Shariah-compliant
  • 1Q15 core net profit was below our and street expectations.
  • 2015-17F EPS tweaked -2% on lower FFB output growth (-3ppts for 2015), higher property earnings and higher capex.
  • GENP is deep in value, backed by an RNAV of MYR14.08/sh. Maintain BUY with a revised SOP-TP of MYR11.26 (-10sen).
AirAsia X Bhd: Maintain Hold
Bad as expected
  • Broadly in-line with expectation, straightforward quarter.
  • Yields falling fast and market is flushed with cheap tickets.
  • Maintain HOLD, with a lower TP of MYR0.30 (from MYR0.37).
Ta Ann Holdings: Maintain Buy
Timber outperformed again  Shariah-compliant
  • 1Q15 results were above our and consensus expectations.
  • Muted impact from MACC investigation on illegal logging.
  • Maintain BUY at unchanged MYR5.90 TP (15x 2016 PER).
Ann Joo Resources: Maintain Hold
Survival game
  • Stronger 1Q15 earnings above expectations due to the temporary reprieve in industry import activities.
  • Outlook remains challenging on rising import activities.
  • Maintain HOLD and TP of MYR1.05 (0.5x 2015 P/BV).
Icon Offshore: Downgrade To Sell
Poor 1Q15; challenges ahead  Shariah-compliant
  • 1Q15 adjusted net profit accounted for only 4% of our/ consensus full year forecasts, hit by low OSV utilisation.
  • Challenges ahead over the next 18 months; cut 2015/16 net profit forecasts by 88%/57% on lower OSV utilisation.
  • Downgrade to SELL with a lower adjusted TP of MYR0.42 (on an unchanged 9x 2016 PER) from MYR0.98.
TH Plantations: Maintain Hold
Dragged by low output, ASP  Shariah-compliant
  • 1Q15 net profit disappointed on low output and ASP.
  • We cut our 2015-17E forecasts by 34%/19%/14% as we lower FFB output by 11%/7%/6%.
  • Maintain HOLD on a lower TP of MYR1.37 pegged to 1x 2014 PBV (from 15x 2016 PER).
Technicals
Further index weakness ahead

The FBMKLCI declined 9.02 points to 1,755.05 yesterday, while the FBMEMAS and FBM100 also closed lower by 56.51 points and 55.85 points, respectively. We recommend a
Sell on Rallies stance for the index.

Trading idea is a Take Profit call on IFCAMSC with downside target areas at MYR1.36 & MYR1.21.
Click here for full report »
Other Local News
Oil and Gas: Petronas to end gas oil storage at Tanjung Langsat. Petronas is not planning to renew its lease to store gas oil at the Tanjung Langsat Terminal One in Johor, once the contract ends in late-May. The oil major company has a one-year contract to lease about 70,000 cu m of space to store gas oil at the terminal. It was not immediately clear why Petronas had decided not to renew. (Source: The Edge Financial Daily)

Titijaya Land: Venture outside Klang Valley worth MYR2.6b. Titijaya Land is eyeing to build a mixed development in Penang with a gross development value (GDV) of MYR2.6b, its first project outside Klang Valley. The 20.4-acre (8.26ha) project, which is within walking distance to the south of the Second Penang Bridge, will have a total land area of 3.2 million sq ft. It will comprise four residential towers, four commercial blocks and a retail street. (Source: The Edge Financial Daily)

MISC: Increases capex to USD1b for this year. MISC has allocated a bigger capex of USD1b (MYR3.64b) this year despite spending cuts by most oil and gas players. The allocation is more than 40 per cent of the USD700m allocated last year. This will be largely spent on its liquefied natural gas (LNG) carrier business as it banks on the segment to drive growth. (Source: New Straits Times)

Kuala Lumpur Kepong (KLK): Buying Sime's German oleochemical assets. The company is buying Emery Oleochemical GmbH's assets in Germany for EUR40.5m (MYR162m) cash. Emery is a unit under Sime Darby (fundamental: 0.8; valuation: 1.4). KLK said the transaction would enable the company to "diversify into the tallow-based market". The transaction is scheduled for completion by the third quarter of this year. (Source: The Edge Financial Daily)

Genting Group: Premium outlet to boost Genting resort attraction. Genting's resort development in Pahang will get another big adition come 2016 when Genting Premium Outlets opens. Situated at Genting Highlands Resort, which is within the MYR5b Genting Integrated Tourism Plan (GITP), Genting Premium Outlets will have up to 210 designer and brand stores. Brand owners will invest an additional MYR100m collectively to enhance the development. (Source: New Straits Times)

EcoWorld: To launch first Penang project in June. EcoWorld is expected to launch its first project in Penang, Eco Terraces condominium in mid-June. Eco Terraces will be located in jalan Paya Terubong. Eco Terraces is scheduled for completion by the second quarter of 2019. (Source: The Edge Financial Daily)
Outside Malaysia
China: Yuan now most-used in Asia for payments to China, SWIFT says. The yuan has become Asia's most-active currency for payments to China and Hong Kong, according to the Society for Worldwide Interbank Financial Telecommunications. The Chinese currency accounts for an average 31% of the region's payments to China and Hong Kong, up from 7%in April 2012, Swift said in a statement. Singapore, Taiwan and South Korea have adopted the yuan officially known as the renminbi for the majority of payments to the Greater China region, according to Michael Moon, head of Asia Pacific payments at Swift in Singapore. (Source: Bloomberg)

Indonesia: Wants lower inflation as it seeks to become more competitive. Indonesia wants to bring annual inflation lower, nearer to the rates managed by its South-East Asian neighbours. Bank Indonesia Governor Agus Martowardojo told an official meeting on the country's high costs that the central bank aims to bring down the inflation rate to between 2.5% and 4.5% in 2018, from a target of 3% and 5% this year. (Source: Reuters)
   
Key Indices
Value
YTD (%)
Daily (%)
KLCI
1,755.10
-0.4
-0.5
JCI
5,253.40
0.5
-1.3
STI
3,424.90
1.8
-1
SET
1,500.80
0.2
0.2
HSI
28,081.20
19
-0.6
KOSPI
2,107.50
10
-1.7
TWSE
9,693.50
4.2
0.2




DJIA
18,163.00
1.9
0.7
S&P
2,123.50
3.1
0.9
FTSE
7,033.30
7.1
1.2




MYR/USD
3.637
4
0.2
CPO (1mth)
2,145.00
-6.4
-1
Crude Oil (1mth)
57.5
8
-0.9
Gold
1,188.10
0.3
0.1












TOP STOCK PICKS



Buy rated large caps

Price
Target
Tenaga Nasional

13.4
16.00
Genting Malaysia

4.29
4.60
Gamuda

5.05
6.00
SP Setia

3.38
4.07
AFG

4.64
4.90
Inari

3.31
4.05
MBM Resources

3.45
4.20
Vitrox

3.48
4.05










No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts with Thumbnails