|
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|
|
|
|
|
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|
|
|
Share
Price:
|
MYR4.18
|
|
Target
Price:
|
MYR4.10
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
A cash option
for Niaga shares
|
|
At its current share price, we deem valuations for Niaga
to be fair and that the cash option, at a 42% discount to current share
price, is too steep – investors should opt for the shares instead. HOLD
maintained on CIMB Group with an unchanged TP of MYR4.10 (FY17 P/BV of
0.8x).
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Operating income
|
14,145.9
|
15,395.8
|
15,869.0
|
16,764.9
|
|
Pre-provision profit
|
5,854.0
|
6,146.8
|
6,669.3
|
7,193.7
|
|
Core net profit
|
3,159.0
|
3,411.2
|
3,647.7
|
3,885.5
|
|
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)
|
11.0
|
10.4
|
9.8
|
9.2
|
|
P/BV (x)
|
0.9
|
0.9
|
0.8
|
0.8
|
|
Net dividend yield (%)
|
3.6
|
3.3
|
4.3
|
4.5
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR3.27
|
|
Target
Price:
|
MYR2.65
|
|
Recommendation:
|
Sell
|
|
|
|
|
|
|
|
|
Dampened
visibility; cut to SELL
|
|
The QoQ rebound in earnings was mainly due to lower opex
and reversal of forex losses instead of topline growth. Near-term
outlook appears murkier, raising concerns on earnings visibility. We
cut FY16-18 earnings forecasts by 27%-45% on (i) lower QCTD and sensor
demand as well as ASP and (ii) higher depreciation cost. We downgrade
Globetronics to SELL with a lower TP of MYR2.65 (-32%), pegging it at a
lower PER multiple of 14x (from 15x) on FY17 EPS to account for the
less sanguine outlook.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
355.0
|
343.7
|
259.7
|
323.2
|
|
EBITDA
|
108.6
|
96.3
|
53.1
|
79.7
|
|
Core net profit
|
64.4
|
71.3
|
24.7
|
53.4
|
|
Core FDEPS (sen)
|
22.9
|
25.3
|
8.7
|
18.9
|
|
Core FDEPS growth(%)
|
20.5
|
10.4
|
(65.5)
|
115.8
|
|
Net DPS (sen)
|
23.0
|
20.0
|
18.0
|
15.2
|
|
Core FD P/E (x)
|
14.3
|
12.9
|
37.4
|
17.3
|
|
P/BV (x)
|
3.2
|
3.1
|
3.4
|
3.2
|
|
Net dividend yield (%)
|
7.0
|
6.1
|
5.5
|
4.6
|
|
ROAE (%)
|
23.0
|
24.4
|
8.6
|
19.1
|
|
ROAA (%)
|
18.5
|
19.9
|
7.2
|
15.8
|
|
EV/EBITDA (x)
|
9.7
|
17.3
|
14.4
|
9.6
|
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.58
|
|
Target
Price:
|
MYR2.30
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
Pan Borneo job
in the bag
|
|
WCT’s contract win for works on the Pan Borneo Sarawak
Highway will lift its outstanding construction orderbook by 11% to
MYR3.8b. Going forward, WCT could clinch more construction jobs from
highways, rails and transit-oriented developments. Our earnings forecasts
are unchanged as we have factored in job wins. Maintain BUY and our
SOP-based TP of MYR2.30.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,662.2
|
1,667.9
|
2,250.2
|
2,400.5
|
|
EBITDA
|
147.5
|
145.7
|
242.0
|
256.9
|
|
Core net profit
|
112.3
|
129.3
|
134.8
|
146.5
|
|
Core EPS (sen)
|
10.3
|
11.3
|
11.2
|
12.2
|
|
Core EPS growth (%)
|
(44.9)
|
9.6
|
(0.4)
|
8.7
|
|
Net DPS (sen)
|
6.2
|
4.2
|
4.2
|
4.2
|
|
Core P/E (x)
|
15.4
|
14.0
|
14.1
|
12.9
|
|
P/BV (x)
|
0.8
|
0.7
|
0.7
|
0.7
|
|
Net dividend yield (%)
|
3.9
|
2.6
|
2.6
|
2.6
|
|
ROAE (%)
|
5.1
|
5.3
|
5.1
|
5.3
|
|
ROAA (%)
|
1.9
|
2.0
|
1.9
|
2.0
|
|
EV/EBITDA (x)
|
21.6
|
27.1
|
16.3
|
15.6
|
|
Net debt/equity (%)
|
66.4
|
78.9
|
73.9
|
73.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR2.89
|
|
Target
Price:
|
MYR4.35
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
A standout 15
sen special DPS
|
|
Yinson, as expected has concluded the divestment of its
non-O&G businesses and as a reward to shareholders, intends to
declare a 15sen special DPS. The payout translates to a decent 5%
yield, an immediate catalyst in our view. Maintain BUY with an
unchanged MYR4.35 SOP-TP.
|
|
|
|
|
|
|
FYE Jan (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
1,083.4
|
986.0
|
996.0
|
1,286.2
|
|
EBITDA
|
225.4
|
261.0
|
288.5
|
417.8
|
|
Core net profit
|
142.6
|
173.1
|
184.2
|
220.0
|
|
Core EPS (sen)
|
13.8
|
16.2
|
17.3
|
20.6
|
|
Core EPS growth (%)
|
114.7
|
17.5
|
6.4
|
19.4
|
|
Net DPS (sen)
|
2.0
|
1.9
|
2.0
|
2.4
|
|
Core P/E (x)
|
20.9
|
17.8
|
16.7
|
14.0
|
|
P/BV (x)
|
2.1
|
1.4
|
1.3
|
1.2
|
|
Net dividend yield (%)
|
0.7
|
0.7
|
0.7
|
0.8
|
|
ROAE (%)
|
13.9
|
9.4
|
7.9
|
8.7
|
|
ROAA (%)
|
6.1
|
4.8
|
3.5
|
3.5
|
|
EV/EBITDA (x)
|
15.1
|
15.6
|
15.3
|
10.6
|
|
Net debt/equity (%)
|
31.6
|
51.9
|
55.2
|
51.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.65
|
|
Target
Price:
|
MYR1.70
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
2Q16 earnings on
track; U/G to BUY
|
|
2Q16 results were within expectations as positive rental
reversions offset higher operating expenses. A first interim gross DPU
of 4.4sen was also in line. We upgrade IGBREIT to BUY with a raised
DCF-TP of MYR1.70 (+15sen) after revising our valuation parameters. We
remain positive on its resilient earnings which are supported by its
two prime malls.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
461.8
|
489.2
|
507.3
|
524.9
|
|
Net property income
|
312.6
|
342.8
|
353.3
|
365.9
|
|
Distributable income
|
268.8
|
291.0
|
309.0
|
320.5
|
|
DPU (sen)
|
7.0
|
7.4
|
8.0
|
8.2
|
|
DPU growth (%)
|
10.7
|
5.1
|
8.3
|
3.0
|
|
Price/DPU(x)
|
23.5
|
22.4
|
20.7
|
20.1
|
|
P/BV (x)
|
1.5
|
1.6
|
1.5
|
1.5
|
|
DPU yield (%)
|
4.2
|
4.5
|
4.8
|
5.0
|
|
ROAE (%)
|
6.4
|
6.9
|
7.3
|
7.6
|
|
ROAA (%)
|
4.6
|
4.9
|
5.2
|
5.4
|
|
Debt/Assets (x)
|
0.2
|
0.2
|
0.2
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR56.00
|
|
Target
Price:
|
MYR48.50
|
|
Recommendation:
|
Sell
|
|
|
|
|
|
|
|
|
2Q16: Below
expectations
|
|
2Q16 results were below expectations on
lower-than-expected sales and higher tax rates. We cut earnings by
5-15% assuming lower sales volume, market share loss and higher
effective tax rates. While we acknowledge that its restructuring plans
could benefit BAT the medium term, we remain cautious on its earnings
in the near term given slower consumer spending and persistent
regulatory risks which cloud its outlook.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
4,796.0
|
4,581.5
|
3,986.1
|
3,683.9
|
|
EBITDA
|
1,277.0
|
1,277.3
|
958.8
|
926.7
|
|
Core net profit
|
910.0
|
914.5
|
660.0
|
671.8
|
|
Core EPS (sen)
|
318.7
|
320.3
|
231.2
|
235.3
|
|
Core EPS growth (%)
|
10.5
|
0.5
|
(27.8)
|
1.8
|
|
Net DPS (sen)
|
309.0
|
312.0
|
208.0
|
223.5
|
|
Core P/E (x)
|
17.6
|
17.5
|
24.2
|
23.8
|
|
P/BV (x)
|
30.5
|
29.3
|
21.0
|
20.1
|
|
Net dividend yield (%)
|
5.5
|
5.6
|
3.7
|
4.0
|
|
ROAE (%)
|
176.3
|
170.8
|
100.9
|
86.3
|
|
ROAA (%)
|
nm
|
nm
|
50.9
|
48.3
|
|
EV/EBITDA (x)
|
14.8
|
12.8
|
16.6
|
17.1
|
|
Net debt/equity (%)
|
65.9
|
50.5
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
SGD1.56
|
|
Target
Price:
|
SGD1.71
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
Expect stronger
QoQ results
|
|
After a dismal 1Q16 core PATMI of USD5m, we expect FR to
post higher 2Q16 core PATMI of ~USD20m on higher CPO ASP achieved and
output. But results could still be below expectations as 2Q16 output
remains sluggish. Still, we believe short term negatives are priced in.
Taking a longer term view, FR offers a good 3-year forward FFB output
CAGR of 10%. Maintain BUY with an unchanged TP of SGD1.71 on 17x 2016
PER.
|
|
|
|
|
|
|
FYE Dec (USD m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
615.5
|
453.7
|
521.0
|
598.0
|
|
EBITDA
|
288.6
|
202.6
|
216.5
|
251.2
|
|
Core net profit
|
172.0
|
109.8
|
115.1
|
136.1
|
|
Core EPS (cts)
|
10.9
|
6.9
|
7.3
|
8.6
|
|
Core EPS growth (%)
|
(20.7)
|
(36.1)
|
4.8
|
18.2
|
|
Net DPS (cts)
|
2.6
|
1.8
|
2.2
|
2.6
|
|
Core P/E (x)
|
10.6
|
16.6
|
15.8
|
13.4
|
|
P/BV (x)
|
1.7
|
2.5
|
2.2
|
2.0
|
|
Net dividend yield (%)
|
2.2
|
1.6
|
1.9
|
2.2
|
|
ROAE (%)
|
16.7
|
12.2
|
14.8
|
15.7
|
|
ROAA (%)
|
9.1
|
6.2
|
7.1
|
7.8
|
|
EV/EBITDA (x)
|
8.7
|
12.2
|
9.5
|
7.9
|
|
Net debt/equity (%)
|
21.8
|
39.3
|
23.7
|
13.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACRO RESEARCH
|
|
|
|
|
|
|
|
Technical Research
by Lee
Cheng Hooi
|
|
|
|
|
|
|
|
|
|
|
The FBMKLCI fell 6.84 points to close at 1,661.42
yesterday and the FBMEMAS and the FBM100 declined 56.25 points and
55.41 points respectively. In terms of market breadth, the
gainer-to-loser ratio was 294-to-448, while 377 counters were
unchanged. A total of 1.40b shares were traded valued at MYR1.56b.
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
U.S: New-Home sales jump to highest level since February
2008, indicating a firm and resilient housing market. Sales increased
3.5% to a 592,000 annualized pace, the fastest since February 2008,
Commerce Department data showed. Figures for May were revised higher.
While the government’s new-home purchase data are subject to big swings
from month to month, the broader picture for residential real estate
shows steady gains fueled by stable employment and low borrowing costs.
(Source: Bloomberg)
U.S: Home Prices in 20 cities rose less than forecast in
May, signaling both buyers and sellers had the potential to benefit
during the busy selling season, according to S&P CoreLogic
Case-Shiller data reported. 20-city property values index increased 5.2%
YoY from May 2015 (forecast was 5.5% YoY) after climbing 5.4% YoY in the
year through April. National home-price gauge rose 5% YoY. (Source:
Bloomberg)
U.S: Fed rate-hike expectations rise toward level before
Brexit vote. The market-implied probability of a Federal Reserve increase
in benchmark interest rates has come almost full circle since Britain
voted June 23 to leave the European Union. Federal funds futures indicate
that the chance of a Dec. 14 hike has rebounded to 49%, approaching the
level on the day of the U.K.'s referendum. The likelihood had tumbled to
just over 15% immediately after the vote was tabulated on speculation
that Brexit would undermine global economic growth. The Fed is projected
to hold steady Wednesday, July 27. (Source: Bloomberg)
Brazil: Central Bank minutes push back rate cut bets.
Brazil’s central bank says it sees no room to cut its benchmark rate as
inflation hasn’t been slowing fast enough and market expectations for
price increases remain above the 2017 target. “All board members acknowledged
progress in the disinflation outlook for the Brazilian economy, but
expressed concern about inflation expectations,” policy makers said in
minutes of their first meeting under new central bank chief Ilan
Goldfajn. The board members voted unanimously after their July 19-20
meeting to keep the Selic rate unchanged for an eighth straight time at
14.25%. (Source: Bloomberg)
Japan: Fiscal plan calls for continued cooperation with
BOJ. The Abe administration highlighted continuing cooperation with the
Bank of Japan in an outline of a fiscal-stimulus package that has yet to
have a price tag decided. Finance Minister Taro Aso, speaking to
reporters in Tokyo, said he hoped that the BOJ would continue its utmost
efforts to achieve its 2% inflation target, while leaving actual
monetary-policy measures in the hands of the central bank. He said that
the government has yet to decide on the size of its fiscal program. The
Nikkei newspaper reported that the plan would include JPY 6t (USD 57b) of
new spending, although only about JPY 2t of that would be in a
supplementary budget to be passed this year. (Source: Bloomberg)
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|
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|
|
|
|
Other News:
Auto: Perodua offers to supply engines to Proton.
Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has offered to supply its
range of engines and transmission to Proton Holdings. President and chief
executive-officer Datuk Dr Aminar Rashid Salleh said Perodua is
interested in supplying Proton its latest 1.3 and 1.5 litre NR series
four-cylinder engines which are being manufactured at Perodua’s new plant
in Sendayan, Negeri Sembilan . The Sendayan plant, according to Aminar
can produce up to 200,000 units of engines per annum if it’s running on
two shifts. Currently he said, the plant is running on one shift, and is
producing only the 1.3 litre engine for the Bezza. (Source: The Edge
Financial Daily)
Construction: CH2M appointed as technical adviser for
KL-Singapore HSR. Global engineering firm CH2M Hill has been appointed as
the technical adviser for the Kuala Lumpur-Singapore High Speed Rail
(HSR) project by MyHSR Corp Sdn Bhd and to support MyHSR to develop the
project, including working on the planning and design of the Malaysian
section of the project, and assisting with the project management aspects
of the project (Source: TheEdge Financial Daily)
SapuraKencana: Eyes more cost savings in 2016.
SapuraKencana Petroleum which achieved total cost savings of MYR500m in
the last two years through its internal transformation is targeting to
save another MYR250m this year. The compnay has achived a total cost
savings of approximately MYR500m to date (30% cost reduction) by
optimising procurement channels, increasing operating efficiencies and
right sizing its overhead expenses. President and group chief executive
officer Tan Sri Shahril Shamsuddin said, the company will focus on
business acquisitions and more job awards to prop up its revenue. Its
current tender book stands at USD7b (MYR28.5). (Source: The Edge
Financial Daily)
Public Bank: Latest lender to revise key interest rates.
Public Bank will reduce its base rate (BR) and base lending rate (BLR) by
23 basis points effective tomorrow following the cut in Bank Negara
Malaysia's Overnight Policy Rate (OPR) two weeks ago. Public Bank said
the reduction will bring its BR to 3.52% and BLR to 6.72%, respectively.
(Source: The Sun Daily)
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