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AirAsia Bhd | Wow!
Mohshin Aziz
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Share
Price:
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MYR6.52
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Target
Price:
|
MYR6.13
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Recommendation:
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Hold
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Healthy patient
volume growth & more expansions in 2017
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1Q16 earnings in line with our forecast but slightly below
consensus. Revenue & EBITDA grew 24% & 17% YoY from continued
organic growth and acquisition of Hospitals in India. However, core
earnings grew 5%, due to higher financing costs for acquisition of Global
Hospitals in Dec 2015. Inpatient volume grew significantly across all
the home markets. To sustain its growth momentum, IHH will be adding
three new hospitals with around 1,100 new beds in 2017. Maintain HOLD
and SOTP TP of MYR6.13.
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FYE Dec (MYR m)
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FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
7,344.0
|
8,455.5
|
10,547.2
|
12,281.2
|
|
EBITDA
|
1,943.0
|
2,218.7
|
2,663.1
|
3,065.6
|
|
Core net profit
|
785.0
|
899.2
|
1,011.7
|
1,209.9
|
|
Core FDEPS (sen)
|
9.5
|
10.9
|
12.2
|
14.6
|
|
Core FDEPS growth(%)
|
28.5
|
14.5
|
11.9
|
19.6
|
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Net DPS (sen)
|
3.0
|
3.0
|
3.0
|
3.5
|
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Core FD P/E (x)
|
68.3
|
59.7
|
53.3
|
44.6
|
|
P/BV (x)
|
2.7
|
2.4
|
2.3
|
2.2
|
|
Net dividend yield (%)
|
0.5
|
0.5
|
0.5
|
0.5
|
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ROAE (%)
|
4.2
|
4.3
|
4.5
|
5.1
|
|
ROAA (%)
|
2.8
|
2.8
|
2.8
|
3.2
|
|
EV/EBITDA (x)
|
22.1
|
27.4
|
23.1
|
20.2
|
|
Net debt/equity (%)
|
9.3
|
21.1
|
24.6
|
23.4
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Share
Price:
|
MYR4.37
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Target
Price:
|
MYR4.10
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Recommendation:
|
Sell
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1Q16 below
expectations
|
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The recovery in CIMB’s earnings has been weaker than
expected amid volatile capital markets and there is still downside risk
to CIMB Niaga’s recovery amid still deteriorating asset quality for the
industry as a whole and the prospect of NIMs contracting as loans are
repriced lower. We maintain our SELL call on CIMB Group with a
marginally lower PBV of MYR4.10 (-30sen), pegging on an FY17 PBV of
0.8x (FY17 ROE: 8.9%).
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FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Operating income
|
14,145.9
|
15,395.8
|
15,869.0
|
16,763.4
|
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Pre-provision profit
|
5,854.0
|
6,146.8
|
6,669.3
|
7,192.2
|
|
Core net profit
|
3,159.0
|
3,411.2
|
3,647.7
|
3,884.4
|
|
Core EPS (MYR)
|
0.38
|
0.40
|
0.43
|
0.46
|
|
Core EPS growth (%)
|
(31.1)
|
5.6
|
6.3
|
6.5
|
|
Net DPS (MYR)
|
0.15
|
0.14
|
0.18
|
0.19
|
|
Core P/E (x)
|
11.5
|
10.9
|
10.2
|
9.6
|
|
P/BV (x)
|
1.0
|
0.9
|
0.9
|
0.8
|
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Net dividend yield (%)
|
3.4
|
3.2
|
4.1
|
4.3
|
|
Book value (MYR)
|
4.53
|
4.87
|
4.98
|
5.25
|
|
ROAE (%)
|
9.3
|
8.7
|
8.8
|
8.9
|
|
ROAA (%)
|
0.8
|
0.8
|
0.8
|
0.8
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Share
Price:
|
MYR3.44
|
|
Target
Price:
|
MYR3.60
|
|
Recommendation:
|
Hold
|
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4QFY16:
Lackluster quarter
|
|
4QFY3/16 core earnings missed estimates due to
weaker-than-expected earnings from construction, property and
plantation divisions. We cut our FY17-18 net profit estimates by 5-12%.
Earnings growth would resume in FY3/17 with its record high
construction orderbook and more job wins could strengthen its orderbook
further. However, near term upside is limited by potential downward
revision to consensus earnings. The stock is fairly valued. Maintain
HOLD at an unchanged MYR3.60 TP.
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FYE Mar (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
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Revenue
|
5,448.3
|
5,128.2
|
6,679.2
|
7,610.6
|
|
EBITDA
|
1,434.8
|
1,166.7
|
1,221.9
|
1,425.1
|
|
Core net profit
|
530.2
|
509.3
|
589.1
|
701.2
|
|
Core EPS (sen)
|
16.3
|
14.3
|
16.4
|
19.6
|
|
Core EPS growth (%)
|
(15.0)
|
(12.5)
|
15.3
|
19.0
|
|
Net DPS (sen)
|
7.5
|
10.0
|
7.0
|
7.0
|
|
Core P/E (x)
|
21.1
|
24.1
|
20.9
|
17.6
|
|
P/BV (x)
|
1.3
|
1.4
|
1.3
|
1.2
|
|
Net dividend yield (%)
|
2.2
|
2.9
|
2.0
|
2.0
|
|
ROAE (%)
|
7.0
|
5.8
|
6.4
|
7.2
|
|
ROAA (%)
|
2.8
|
2.6
|
2.9
|
3.3
|
|
EV/EBITDA (x)
|
12.0
|
15.4
|
14.8
|
12.6
|
|
Net debt/equity (%)
|
51.4
|
45.8
|
47.0
|
42.1
|
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|
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|
|
|
Share
Price:
|
MYR1.45
|
|
Target
Price:
|
MYR1.60
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
PowerSeraya
pressure
|
|
9MFY16 net profit was overall in line. However,
PowerSeraya’s earnings continue to come under pressure, while the
Malaysia PPA extension is still not formalised. HOLD rating maintained
with an unchanged MYR1.60 TP. For now, it still appears that YTLP would
repeat a 10sen DPS in FY16.
|
|
|
|
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|
|
FYE Jun (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
14,391.7
|
11,925.9
|
11,342.3
|
11,624.0
|
|
EBITDA
|
2,946.6
|
3,084.5
|
3,336.6
|
3,378.8
|
|
Core net profit
|
1,276.7
|
883.4
|
897.6
|
1,026.2
|
|
Core EPS (sen)
|
19.5
|
12.6
|
12.8
|
14.6
|
|
Core EPS growth (%)
|
38.8
|
(35.6)
|
1.6
|
14.3
|
|
Net DPS (sen)
|
10.0
|
10.0
|
10.0
|
10.0
|
|
Core P/E (x)
|
7.4
|
11.5
|
11.4
|
9.9
|
|
P/BV (x)
|
0.9
|
0.9
|
0.9
|
0.9
|
|
Net dividend yield (%)
|
6.9
|
6.9
|
6.9
|
6.9
|
|
ROAE (%)
|
12.5
|
8.1
|
7.8
|
8.8
|
|
ROAA (%)
|
3.2
|
2.1
|
2.0
|
2.3
|
|
EV/EBITDA (x)
|
8.2
|
8.7
|
7.8
|
7.6
|
|
Net debt/equity (%)
|
139.2
|
138.5
|
135.6
|
130.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR3.93
|
|
Target
Price:
|
MYR4.60
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
FY16 results in
line
|
|
AFG’s FY16 results were within expectations and our
forecasts are maintained. The SME loan book grew at a pace of about 20%
YoY and management hopes to maintain this pace into FY17. We remain
positive on its niche in this segment and maintain our BUY call with an
unchanged TP of MYR4.60 (CY17 PBV of 1.3x for an ROE of 10.7%).
|
|
|
|
|
|
|
FYE Mar (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Operating income
|
1,383.0
|
1,424.1
|
1,479.9
|
1,541.2
|
|
Pre-provision profit
|
736.1
|
735.2
|
779.8
|
820.9
|
|
Core net profit
|
530.8
|
522.0
|
532.7
|
544.5
|
|
Core FDEPS (MYR)
|
0.35
|
0.34
|
0.35
|
0.36
|
|
Core FDEPS growth(%)
|
(5.3)
|
(1.7)
|
2.0
|
2.2
|
|
Net DPS (MYR)
|
0.15
|
0.14
|
0.16
|
0.16
|
|
Core FD P/E (x)
|
11.3
|
11.5
|
11.3
|
11.0
|
|
P/BV (x)
|
1.3
|
1.2
|
1.2
|
1.1
|
|
Net dividend yield (%)
|
3.9
|
3.7
|
3.9
|
4.0
|
|
Book value (MYR)
|
2.95
|
3.17
|
3.36
|
3.56
|
|
ROAE (%)
|
12.3
|
11.2
|
10.7
|
10.3
|
|
ROAA (%)
|
1.0
|
1.0
|
0.9
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR2.12
|
|
Target
Price:
|
MYR2.90
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
Wow!
|
|
1Q16 core earning was way above expectations and a company
record thanks to strong yields and low average fuel price. Outlook
remains robust as industry demand exceeds capacity output. We raise our
2016-18 earnings by 60% / 28% / 44% to impute the better yield
environment. Maintain BUY, with a higher TP of MYR2.90 (from MYR2.50),
based on 8x 2016 PER (previously 10.8x), which represents the bottom of
airline cycle as we think earnings will peak in 2016.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
5,415.7
|
6,299.1
|
5,901.1
|
6,129.5
|
|
EBITDAR
|
1,732.3
|
2,617.4
|
2,116.4
|
1,896.5
|
|
Core net profit
|
39.9
|
238.3
|
1,211.0
|
1,004.6
|
|
Core EPS (sen)
|
1.4
|
8.6
|
36.2
|
30.1
|
|
Core EPS growth (%)
|
(92.9)
|
497.1
|
323.2
|
(17.0)
|
|
Net DPS (sen)
|
0.0
|
0.0
|
12.0
|
8.0
|
|
Core P/E (x)
|
147.8
|
24.8
|
5.8
|
7.1
|
|
P/BV (x)
|
1.3
|
1.3
|
1.1
|
0.9
|
|
Net dividend yield (%)
|
0.0
|
0.0
|
5.7
|
3.8
|
|
ROAE (%)
|
0.8
|
5.3
|
21.7
|
14.2
|
|
ROAA (%)
|
0.2
|
1.1
|
5.6
|
4.5
|
|
EV/EBITDAR (x)
|
10.9
|
5.3
|
7.1
|
7.5
|
|
Net debt/equity (%)
|
249.9
|
228.7
|
118.1
|
96.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.50
|
|
Target
Price:
|
MYR1.36
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Earnings on
track
|
|
After deducting the MYR18.4m distribution to perpetual
sukuk holders, 1Q16 net profit of MYR76.6m was in line. 4M16 sales were
however below expectations due to the lack of new launches but
management remains confident on meeting its 2016 sales target supported
by MYR1.8b worth of new launches in 2H16. We maintain our earnings
forecasts and MYR1.36 RNAV-TP (40% discount to RNAV). Maintain HOLD.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
2,904.7
|
3,108.5
|
2,938.1
|
3,186.0
|
|
EBITDA
|
492.9
|
527.9
|
574.6
|
624.9
|
|
Core net profit
|
339.2
|
338.8
|
317.4
|
350.2
|
|
Core EPS (sen)
|
18.4
|
14.1
|
13.2
|
14.5
|
|
Core EPS growth (%)
|
13.8
|
(23.5)
|
(6.3)
|
10.3
|
|
Net DPS (sen)
|
6.5
|
6.5
|
5.3
|
5.8
|
|
Core P/E (x)
|
8.2
|
10.7
|
11.4
|
10.3
|
|
P/BV (x)
|
1.2
|
1.2
|
1.1
|
1.0
|
|
Net dividend yield (%)
|
4.3
|
4.3
|
3.5
|
3.9
|
|
ROAE (%)
|
16.1
|
12.5
|
9.8
|
10.2
|
|
ROAA (%)
|
6.9
|
5.7
|
4.6
|
4.8
|
|
EV/EBITDA (x)
|
7.9
|
6.9
|
6.8
|
6.3
|
|
Net debt/equity (%)
|
35.8
|
4.3
|
8.4
|
8.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.53
|
|
Target
Price:
|
MYR1.80
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
1Q16 in line but
Non-Shariah compliant for now
|
|
1Q16 results were in line. We expect stronger earnings in
the following quarters, underpinned by its solid MYR5b outstanding
orderbook. Removal from the SC’s Shariah-compliant list could lead to
temporary share price weakness. However, its medium term prospect
remains intact with more potential job wins from upcoming
infrastructure projects. Reiterate BUY at an unchanged MYR1.80 TP.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,880.7
|
1,916.9
|
2,559.5
|
2,622.3
|
|
EBITDA
|
151.2
|
178.2
|
231.3
|
261.8
|
|
Core net profit
|
114.2
|
127.7
|
155.7
|
180.0
|
|
Core EPS (sen)
|
8.8
|
9.9
|
12.0
|
13.9
|
|
Core EPS growth (%)
|
20.9
|
11.9
|
21.9
|
15.6
|
|
Net DPS (sen)
|
30.5
|
4.0
|
4.2
|
4.9
|
|
Core P/E (x)
|
17.3
|
15.5
|
12.7
|
11.0
|
|
P/BV (x)
|
5.9
|
4.4
|
3.6
|
3.0
|
|
Net dividend yield (%)
|
20.0
|
2.6
|
2.8
|
3.2
|
|
ROAE (%)
|
24.1
|
32.6
|
31.0
|
29.5
|
|
ROAA (%)
|
8.4
|
9.2
|
9.5
|
9.8
|
|
EV/EBITDA (x)
|
na
|
8.7
|
6.8
|
5.6
|
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.37
|
|
Target
Price:
|
MYR1.38
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
1Q16: In line
|
|
1Q16 results were within expectations. For the nearer
term, we remain cautious on 7EM’s earnings outlook as it could be
affected by the minimum wage hike come 1 Jul 2016. However, with the
restriction period under Price Control & Anti-Profiteering Act expiring
on 30 June, some price adjustments on products could help cushion the
impact. We keep our earnings forecasts unchanged for now.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,893.1
|
2,006.3
|
2,179.2
|
2,497.3
|
|
EBITDA
|
130.9
|
126.5
|
141.9
|
162.8
|
|
Core net profit
|
58.1
|
55.8
|
60.2
|
68.2
|
|
Core EPS (sen)
|
4.7
|
4.6
|
4.9
|
5.6
|
|
Core EPS growth (%)
|
15.9
|
(3.3)
|
8.0
|
13.1
|
|
Net DPS (sen)
|
5.1
|
4.7
|
2.5
|
2.8
|
|
Core P/E (x)
|
29.1
|
30.1
|
27.9
|
24.6
|
|
P/BV (x)
|
7.2
|
9.9
|
8.4
|
7.2
|
|
Net dividend yield (%)
|
3.7
|
3.4
|
1.8
|
2.0
|
|
ROAE (%)
|
38.4
|
27.5
|
32.5
|
31.4
|
|
ROAA (%)
|
8.5
|
7.5
|
7.7
|
7.7
|
|
EV/EBITDA (x)
|
12.3
|
13.9
|
10.9
|
9.2
|
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR0.47
|
|
Target
Price:
|
MYR0.80
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
Building a
renewable energy (RE) base
|
|
1Q16 core earnings came in below, with the shortfall
mainly from the losses at its Canadian operations (4% of order
backlog). Excluding that, results would have met our expectation. For
that, we cut 2016-17 earnings by 21%-32%. Earnings downgrade aside, the
angle to KNM is its transformation into a RE play. Executing it is a
major catalyst. Maintain BUY with an unchanged MYR0.80 TP, based on
0.4x EV/backlog, which implies 8x 2017 PER.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,865.1
|
1,641.3
|
1,830.7
|
2,170.4
|
|
EBITDA
|
207.9
|
205.7
|
164.9
|
215.4
|
|
Core net profit
|
36.8
|
45.7
|
71.5
|
110.5
|
|
Core EPS (sen)
|
2.4
|
2.4
|
3.8
|
5.9
|
|
Core EPS growth (%)
|
61.2
|
3.4
|
56.7
|
54.4
|
|
Net DPS (sen)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
Core P/E (x)
|
19.7
|
19.0
|
12.1
|
7.9
|
|
P/BV (x)
|
0.3
|
0.3
|
0.3
|
0.3
|
|
Net dividend yield (%)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
ROAE (%)
|
1.7
|
1.9
|
2.6
|
4.0
|
|
ROAA (%)
|
0.9
|
1.1
|
1.7
|
2.5
|
|
EV/EBITDA (x)
|
6.3
|
7.1
|
7.9
|
5.6
|
|
Net debt/equity (%)
|
27.1
|
19.1
|
16.1
|
12.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.39
|
|
Target
Price:
|
MYR1.63
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
A weak 1Q16
|
|
MPHB’s 1Q16 results were weak, predominantly on the back
of lower contributions from its insurance divison. Correspondingly, our
FY16-FY18 earnings have been cut by 14-15%, but our SOP-derived TP of
MYR1.63 is unchanged, pegging on a PBV of 2.5x to MPI. There are no new
corporate developments at this stage to warrant a change in our HOLD
call.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
370.1
|
380.8
|
388.4
|
396.2
|
|
EBITDA
|
264.8
|
117.2
|
93.2
|
98.3
|
|
Core net profit
|
54.1
|
43.4
|
34.1
|
37.2
|
|
Core EPS (sen)
|
7.6
|
6.1
|
4.8
|
5.2
|
|
Core EPS growth (%)
|
12.2
|
(19.9)
|
(21.4)
|
9.2
|
|
Net DPS (sen)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
Core P/E (x)
|
18.4
|
22.9
|
29.2
|
26.7
|
|
P/BV (x)
|
0.8
|
0.6
|
0.6
|
0.6
|
|
Net dividend yield (%)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
ROAE (%)
|
4.5
|
3.0
|
2.1
|
2.3
|
|
ROAA (%)
|
2.2
|
1.5
|
1.1
|
1.2
|
|
EV/EBITDA (x)
|
3.5
|
3.6
|
2.6
|
2.1
|
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.44
|
|
Target
Price:
|
MYR1.85
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
FMCG the heavy
lifter; U/G to BUY
|
|
4QFY16 results positively surprised mainly on
better-than-expected performance of the FMCG division. Imputing the
stronger set of results, we revised up our earnings for FY17/18 by
14%/8%. We upgrade OTB to a BUY with a higher TP of MYR1.85 (+45sen,
14.8x FY17 PER; mean).
|
|
|
|
|
|
|
FYE Mar (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
397.7
|
393.4
|
422.0
|
459.2
|
|
EBITDA
|
82.9
|
84.5
|
91.2
|
95.6
|
|
Core net profit
|
51.0
|
55.3
|
57.6
|
61.3
|
|
Core EPS (sen)
|
11.2
|
11.9
|
12.4
|
13.2
|
|
Core EPS growth (%)
|
4.2
|
6.1
|
4.3
|
6.4
|
|
Net DPS (sen)
|
6.0
|
9.0
|
6.8
|
7.3
|
|
Core P/E (x)
|
12.8
|
12.1
|
11.6
|
10.9
|
|
P/BV (x)
|
1.9
|
1.8
|
1.7
|
1.6
|
|
Net dividend yield (%)
|
4.2
|
6.3
|
4.8
|
5.1
|
|
ROAE (%)
|
15.2
|
15.8
|
15.4
|
15.3
|
|
ROAA (%)
|
11.8
|
12.5
|
12.4
|
12.4
|
|
EV/EBITDA (x)
|
8.2
|
6.5
|
5.5
|
5.0
|
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR0.38
|
|
Target
Price:
|
MYR0.42
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
1Q16 results a
miss
|
|
1Q16 results came in below, with a core net loss of MYR3m
due to low OSV utilisation (-19-ppt YoY). For that, we cut FY16-17
earnings forecasts by 45%-85%. The OSV market will continue to be
challenging but Icon’s push for higher OSV utilisation is commendable
and is ahead of its peers. Its M&A prospect is a key standout, a
re-rating catalyst if crystalised. Valuations are attractive even
without the M&A angle. Our MYR0.42 TP is based on 1x EV/replacement
value.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
318.9
|
266.6
|
254.6
|
327.1
|
|
EBITDA
|
190.3
|
122.8
|
99.1
|
130.3
|
|
Core net profit
|
74.9
|
18.2
|
6.0
|
27.4
|
|
Core EPS (sen)
|
6.4
|
1.5
|
0.5
|
2.3
|
|
Core EPS growth (%)
|
(34.1)
|
(75.6)
|
(66.9)
|
354.7
|
|
Net DPS (sen)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
Core P/E (x)
|
6.0
|
24.5
|
74.1
|
16.3
|
|
P/BV (x)
|
0.4
|
0.6
|
0.6
|
0.6
|
|
Net dividend yield (%)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
ROAE (%)
|
10.3
|
2.0
|
0.8
|
3.7
|
|
ROAA (%)
|
4.5
|
1.1
|
0.4
|
1.9
|
|
EV/EBITDA (x)
|
7.7
|
9.2
|
11.2
|
7.6
|
|
Net debt/equity (%)
|
54.9
|
84.9
|
89.8
|
71.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR3.65
|
|
Target
Price:
|
MYR4.10
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
Strong momentum
to sustain
|
|
We came out from yesterday’s briefing excited on ViTrox’s
demand visibility which has spill over to 3Q16 with MYR40m order
backlog as at early-May. Book-to-bill ratio is on an uptrend, showing
signs of healthy order replenishment. We lift our FY16-18 net profit
forecasts by 2%-4% on higher sales volume, partially offset by lower
USD/MYR forex assumption. Our TP is raised to MYR4.10 (+3%) on
unchanged 14x CY17 EPS. Maintain BUY.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
169.9
|
160.3
|
225.8
|
252.3
|
|
EBITDA
|
53.5
|
59.1
|
72.8
|
81.2
|
|
Core net profit
|
50.3
|
51.3
|
67.8
|
68.9
|
|
Core EPS (sen)
|
21.4
|
21.8
|
28.8
|
29.3
|
|
Core EPS growth (%)
|
134.4
|
1.9
|
32.0
|
1.7
|
|
Net DPS (sen)
|
6.0
|
5.0
|
7.2
|
7.3
|
|
Core P/E (x)
|
17.1
|
16.8
|
12.7
|
12.5
|
|
P/BV (x)
|
4.9
|
4.1
|
3.3
|
2.8
|
|
Net dividend yield (%)
|
1.6
|
1.4
|
2.0
|
2.0
|
|
ROAE (%)
|
32.9
|
26.7
|
28.9
|
24.1
|
|
ROAA (%)
|
25.5
|
21.2
|
21.7
|
16.5
|
|
EV/EBITDA (x)
|
8.9
|
12.7
|
11.6
|
10.6
|
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACRO RESEARCH
|
|
|
|
|
|
|
|
Strategy Research
by Chew
Hann Wong
|
|
|
|
|
|
|
20 additions, 15
deletions
|
|
|
|
|
|
|
The Securities Commission’s (SC) revised Shariah
compliant securities/ stocks list, released last evening, will take
effect from today, 27 May. It includes 20 additions and 15 deletions.
The number of Shariah compliant stocks now stands at 669 (74%), out of
total 905 listed stocks on Bursa Securities, compared to 667 (74%) at
the SC’s last review in Nov 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Economics Research
by
Suhaimi Ilias
|
|
|
|
|
|
|
|
|
|
|
Industrial Production (IP) got off to a good start in
2Q 2016 with a faster growth of +2.9% YoY in Apr 2016 (Mar 2016:
+0.1% YoY) led by gains in biomedical and electronics. It also
increased by a seasonally-adjusted +4.8% MoM (s.a Mar 2016: +1.3%
MoM). Manufacturing sector outlook for this quarter is looking up as
recent business expectation survey hints at a moderate recovery
following last quarter’s -1.0% YoY dip.
|
|
|
|
|
|
Suhaimi Ilias
|
|
|
|
Zamros
Dzulkafli
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technical Research
by Lee
Cheng Hooi
|
|
|
|
|
|
|
Another sluggish
trading day
|
|
|
|
|
|
|
The FBMKLCI rose by 0.13 points to close at 1,631.09
yesterday, while the FBMEMAS and FBM100 fell 12.50 and 12.67 points
respectively. In terms of market breadth, the gainer-to-loser ratio
was 320-to-470, while 369 counters were unchanged. A total of 1.47b
shares were traded valued at MYR1.48b.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
U.S: Orders for capital goods unexpectedly fall for third
month in April, indicating American manufacturers continue to pull back.
Orders for non-defense capital goods excluding aircraft fell 0.8%
(forecast was for 0.3% gain) to five-year low of USD 62.4b. Shipments of
such business equipment rose 0.3%, erasing the March decline. Total
durable goods orders climbed 3.4% after 1.9% advance. (Source: Bloomberg)
U.S: Pending sales of existing homes in Apr 2016 rise by
most since 2010, adding to signs that the industry’s busy selling season
was off to a good start. Index of pending home re-sales increased 5.1%
(forecast was 0.7%) after a revised 1.6% gain in March. Measure increased
2.9% YoY on an unadjusted basis. Three of four regions increased,
including a 11.4% surge in the West that was the biggest in records back
to 2001. Sales gauge rose to a decade-high of 116.3 on a seasonally
adjusted basis, with 100 indicating “historically healthy” buying
activity, according to NAR. (Source: Bloomberg)
U.K: Consumers drive economy as investment, exports
decline. U.K. consumers stayed resilient in the first quarter in the face
of the referendum on European Union membership. Household spending rose
0.7%, the fastest pace in almost a year, the Office for National Statistics
said. The gain helped to offset falling exports and business investment.
Economic growth overall slowed to 0.4% from 0.6% in the fourth quarter,
unrevised from an initial estimate. (Source: Bloomberg)
Japan: CPI falls 0.3% in April, raising pressure on BOJ
for more stimulus as central bank Governor Haruhiko Kuroda struggles to
spur inflation with record asset purchases and negative interest rates.
Consumer prices excluding fresh food fell 0.3% YoY, after dropping by the
same amount in March. The lack of price growth will intensify pressure on
the Bank of Japan to consider further monetary stimulus after Kuroda
disappointed the markets by taking no action at April’s meeting. The data
is the final set of consumer price indicators to be released before the
BOJ’s board meets on June 15-16. (Source: Bloomberg)
|
|
|
|
|
|
|
Other News:
Engtex Group: Bags MYR25m contract from Syabas. Pipe
manufacturer Engtex Group has bagged a MYR25m contract from Syarikat
Bekalan Air Selangor Sdn Bhd (Syabas) to supply ductile iron (DI) pipes
as part of Selangor’s water pipe replacement programme. The group plans
to invest approximately MYR15m in capital expenditure (capex) in order to
enhance its competitive edge, in view of higher anticipated demand in the
future. The capex would be for new machinery to increase the DI pipe
diameter from the current 800mm to 1,200mm, as well as to expand its mild
steel pipe production capacity from 42,000 tonnes to 66,000 tonnes per
annum. (Source: The Edge Financial Daily)
Genting Malaysia: Genting Hong Kong launches Dream
Cruises. Genting Hong Kong Ltd, a 16.87% associate company of Genting
Malaysia, has launched Dream Cruises, a brand new cruise line catering to
the large and rapidly growing premium market in Asia. Dream Cruises is
the first ever Asian luxury cruise line and focus on markets like China,
Malaysia, Singapore, Taiwan, Indonesia, India, Japan, Korea and
Australia. Genting Dream, the inaugural ship of Dream Cruises, is
currently undergoing fit-out at shipbuilders Meyer Werft in Germany.
(Source: The Sun Daily)
Ann Joo: Steel price rally helps Ann Joo pare down
inventory. The recent increase in international steel prices has enabled
Ann Joo Resources to clear up its inventory that has been piled up since
last year due to the influx of cheap imports from China. The company
expects the impact of the stronger steel prices to be reflected in Ann
Joo’s earnings from the second quarter ending June 30, 2016 onwards.
However, being a domestic steel mill operator, Ann Joo’s performance will
still depend on the China dumping factor, and whether the government
would give its support to the local steel industry. (Source: The Edge
Financial Daily)
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