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Share
Price:
|
MYR14.32
|
|
Target
Price:
|
MYR16.00
|
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Recommendation:
|
Buy
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Strong delivery
yet again
|
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3QFY16 results were in line, with the sequential
improvement due to seasonality. Tenaga continues to be our top BUY pick
for the sector and the market given its compelling valuation. Coal
prices are rising, but not to the extent where Tenaga requires a tariff
“surcharge”. Reiterate BUY with an unchanged MYR16.00 TP.
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FYE Aug (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
42,792.4
|
43,286.8
|
45,613.9
|
46,965.0
|
|
EBITDA
|
11,703.5
|
13,921.8
|
14,690.9
|
15,091.9
|
|
Core net profit
|
5,428.1
|
7,050.7
|
7,202.9
|
7,455.6
|
|
Core EPS (sen)
|
96.2
|
124.9
|
127.6
|
132.1
|
|
Core EPS growth (%)
|
33.6
|
29.9
|
2.2
|
3.5
|
|
Net DPS (sen)
|
29.0
|
29.0
|
34.2
|
36.5
|
|
Core P/E (x)
|
14.9
|
11.5
|
11.2
|
10.8
|
|
P/BV (x)
|
1.9
|
1.7
|
1.5
|
1.4
|
|
Net dividend yield (%)
|
2.0
|
2.0
|
2.4
|
2.5
|
|
ROAE (%)
|
13.9
|
15.6
|
14.5
|
13.5
|
|
ROAA (%)
|
5.2
|
6.2
|
6.0
|
5.9
|
|
EV/EBITDA (x)
|
7.2
|
5.7
|
6.5
|
6.2
|
|
Net debt/equity (%)
|
31.7
|
33.4
|
27.8
|
22.8
|
|
|
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Gamuda (GAM MK)
by Li Shin
Chai
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Share
Price:
|
MYR4.82
|
|
Target
Price:
|
MYR5.65
|
|
Recommendation:
|
Buy
|
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Clinches Pan
Borneo job
|
|
Gamuda’s Pan Borneo Sarawak Highway job win will lift its
outstanding construction orderbook by 6% to MYR8.7b. Total job wins
FYTD of MYR8.2b has exceeded our expectation. We raise our FY16 job win
forecast and FY17/18 net profit estimates by 3%/5%. Further earnings
upside could emanate from additional job wins and stronger-than-expected
property sales. Maintain BUY at an unchanged SOP-TP MYR5.65.
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FYE Jul (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
4,636.4
|
2,399.9
|
2,587.7
|
3,442.2
|
|
EBITDA
|
775.2
|
638.0
|
770.0
|
854.1
|
|
Core net profit
|
712.2
|
682.1
|
665.3
|
719.8
|
|
Core EPS (sen)
|
31.0
|
28.9
|
27.7
|
29.9
|
|
Core EPS growth (%)
|
4.9
|
(6.6)
|
(4.5)
|
8.2
|
|
Net DPS (sen)
|
12.0
|
12.0
|
12.0
|
12.0
|
|
Core P/E (x)
|
15.6
|
16.7
|
17.4
|
16.1
|
|
P/BV (x)
|
2.0
|
1.8
|
1.8
|
1.7
|
|
Net dividend yield (%)
|
2.5
|
2.5
|
2.5
|
2.5
|
|
ROAE (%)
|
13.8
|
11.6
|
10.5
|
11.0
|
|
ROAA (%)
|
7.6
|
5.8
|
4.9
|
5.0
|
|
EV/EBITDA (x)
|
17.2
|
22.7
|
19.7
|
18.0
|
|
Net debt/equity (%)
|
30.1
|
43.7
|
49.7
|
49.0
|
|
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|
|
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|
|
|
Share
Price:
|
MYR1.42
|
|
Target
Price:
|
MYR1.60
|
|
Recommendation:
|
Buy
|
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Clinches TANAP
EPCI works
|
|
We are positive on several fronts from this job win. This
is SAKP’s first breakthrough into Europe, a testament of its operating
capabilities and opens up new opportunities in the region. Also, the
consistency in its replenishment orders (secured MYR3.1b new jobs
to-date) reflects its bidding competitiveness and improving prospects
in the industry. Unlocking the value of its gas assets remains high on
its agenda. Signing several new, bigger GSAs over the next 12 months is
a re-rating catalyst.
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|
|
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|
FYE Jan (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
9,943.0
|
10,184.0
|
7,232.9
|
7,633.5
|
|
EBITDA
|
3,120.5
|
3,088.6
|
2,254.8
|
2,242.9
|
|
Core net profit
|
1,216.7
|
1,009.4
|
107.6
|
143.3
|
|
Core EPS (sen)
|
20.3
|
16.9
|
1.8
|
2.4
|
|
Core EPS growth (%)
|
13.6
|
(16.8)
|
(89.3)
|
33.2
|
|
Net DPS (sen)
|
4.3
|
1.4
|
0.0
|
0.0
|
|
Core P/E (x)
|
7.0
|
8.4
|
78.8
|
59.2
|
|
P/BV (x)
|
0.7
|
0.7
|
0.7
|
0.7
|
|
Net dividend yield (%)
|
3.1
|
1.0
|
0.0
|
0.0
|
|
ROAE (%)
|
11.0
|
8.3
|
0.9
|
1.2
|
|
ROAA (%)
|
4.0
|
2.8
|
0.3
|
0.4
|
|
EV/EBITDA (x)
|
10.2
|
8.9
|
10.8
|
10.6
|
|
Net debt/equity (%)
|
131.0
|
134.2
|
129.5
|
123.1
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
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|
|
Share
Price:
|
MYR19.56
|
|
Target
Price:
|
MYR19.70
|
|
Recommendation:
|
Hold
|
|
|
|
|
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|
|
Stable as a rock
|
|
Public Bank’s 2Q16 results were stable and within
expectations as net profit expanded 5% YoY to MYR1.26b. Acknowledging a
still challenging operating environment, the group is still on target
to meet its KPIs, albeit at the lower end of estimates. We maintain our
earnings forecasts and HOLD call, with an unchanged TP of MYR19.70.
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|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Operating income
|
8,673.4
|
9,438.8
|
9,758.9
|
10,282.4
|
|
Pre-provision profit
|
6,067.5
|
6,523.6
|
6,749.9
|
7,077.1
|
|
Core net profit
|
4,518.8
|
4,955.2
|
5,114.4
|
5,321.9
|
|
Core EPS (MYR)
|
1.17
|
1.28
|
1.32
|
1.38
|
|
Core EPS growth (%)
|
4.1
|
9.7
|
3.2
|
4.1
|
|
Net DPS (MYR)
|
0.54
|
0.56
|
0.60
|
0.62
|
|
Core P/E (x)
|
16.7
|
15.2
|
14.8
|
14.2
|
|
P/BV (x)
|
2.7
|
2.4
|
2.2
|
2.0
|
|
Net dividend yield (%)
|
2.8
|
2.9
|
3.1
|
3.2
|
|
Book value (MYR)
|
7.26
|
8.09
|
8.97
|
9.85
|
|
ROAE (%)
|
18.7
|
16.7
|
15.5
|
14.6
|
|
ROAA (%)
|
1.4
|
1.4
|
1.4
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.80
|
|
Target
Price:
|
MYR1.75
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
A short-term
blip
|
|
Profits and 1st interim gross DPU of 4.16sen fell short
mainly due to higher borrowing costs. We lower FY16-18 earnings
forecasts by –5% to -6%, and our DCF-TP by 5sen to MYR1.75 (WACC: 6.4%,
terminal yield: 6.5%). With a narrowed upside, PavREIT is now a HOLD.
Its 12-month forward gross DPU yield of 4.8% is also the lowest in the
sector.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
402.1
|
413.9
|
465.5
|
545.9
|
|
Net property income
|
282.7
|
291.5
|
321.3
|
376.4
|
|
Distributable income
|
239.9
|
248.9
|
253.3
|
268.2
|
|
DPU (sen)
|
7.2
|
7.4
|
7.6
|
8.0
|
|
DPU growth (%)
|
8.1
|
3.1
|
2.3
|
5.9
|
|
Price/DPU(x)
|
25.1
|
24.4
|
23.8
|
22.5
|
|
P/BV (x)
|
1.4
|
1.4
|
1.2
|
1.1
|
|
DPU yield (%)
|
4.0
|
4.1
|
4.2
|
4.4
|
|
ROAE (%)
|
6.3
|
6.3
|
5.9
|
5.7
|
|
ROAA (%)
|
5.2
|
5.1
|
4.5
|
4.1
|
|
Debt/Assets (x)
|
0.2
|
0.2
|
0.2
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR4.39
|
|
Target
Price:
|
MYR4.30
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Strong earnings
priced in
|
|
Stronger 2Q16 net profit (+31% YoY, +6% QoQ) and dividend
were in line, underpinned by strong container throughput, the local
container tariff hike and a lower effective tax rate. We anticipate
Westports’ earnings growth momentum to slow in 2H as we expect certain
ad hoc port calls to dissipate. We maintain our earnings forecasts,
HOLD call and DCF-TP of MYR4.30 (WACC: 6.7%, LT growth (2025-2054):
2%). The uncertainty surrounding its key customers may clear up towards
end-2016.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,503.0
|
1,578.3
|
1,693.4
|
1,770.3
|
|
EBITDA
|
800.8
|
869.1
|
940.1
|
1,017.1
|
|
Core net profit
|
512.2
|
504.9
|
596.4
|
628.2
|
|
Core EPS (sen)
|
15.0
|
14.8
|
17.5
|
18.4
|
|
Core EPS growth (%)
|
17.7
|
(1.4)
|
18.1
|
5.3
|
|
Net DPS (sen)
|
11.3
|
11.1
|
13.1
|
13.8
|
|
Core P/E (x)
|
29.2
|
29.7
|
25.1
|
23.8
|
|
P/BV (x)
|
8.5
|
7.9
|
7.3
|
6.8
|
|
Net dividend yield (%)
|
2.6
|
2.5
|
3.0
|
3.1
|
|
ROAE (%)
|
30.4
|
27.6
|
30.2
|
29.6
|
|
ROAA (%)
|
13.8
|
12.8
|
14.3
|
14.4
|
|
EV/EBITDA (x)
|
15.2
|
17.0
|
17.2
|
15.9
|
|
Net debt/equity (%)
|
40.0
|
39.7
|
59.9
|
53.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACRO RESEARCH
|
|
|
|
|
|
|
|
Technical Research
by Lee
Cheng Hooi
|
|
|
|
|
|
|
Index negativity
emerging
|
|
|
|
|
|
|
The FBMKLCI fell 5.06 points to close at 1,658.50
yesterday and the FBMEMAS and the FBM100 lost 31.14 points and 27.90
points respectively. In terms of market breadth, the gainer-to-loser
ratio was 306-to-462, while 349 counters were unchanged. A total of 2.22b
shares were traded valued at MYR1.85b.
|
|
|
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|
NEWS
|
|
|
Outside Malaysia:
E.U: Euro-area economic confidence unexpectedly improved
in July in a sign that the immediate impact on growth of Britain’s
surprise vote to leave the European Union may be muted. An index of
business and consumer confidence rose to 104.6 in July from 104.4 the
previous month, the European Commission said. (Source: Bloomberg)
Germany: Unemployment extended its decline in July, in a
sign that Europe’s largest economy is showing resilience to uncertainty
unleashed by Britain’s vote to leave the European Union. The number of
people out of work fell by a seasonally adjusted 7,000 to 2.682 million
in July, data from the Federal Labor Agency showed. The jobless rate
remained at a record low of 6.1%. (Source: Bloomberg)
Germany: Inflation exceeds forecasts as Draghi eyes Brexit
clues. German inflation accelerated more than economists estimated in
July, a positive signal for policy makers struggling to meet their goal
for price growth in the 19- nation euro area. The rate rose to 0.4% from
0.2% in June, the Federal Statistics Office in Wiesbaden said. (Source:
Bloomberg)
Spain: Unemployment fell to the lowest in almost six years
in a fresh sign the economy is pushing ahead even as lawmakers struggle
to form a government that can end an unprecedented seven-month political
deadlock. The jobless rate dropped to 20% in the three months through
June, the National Statistics Institute said. That’s down from 21% in the
previous quarter, reflecting the start of the summer season. Overall, the
number of Spaniards out of work fell by 216,700 people to 4.57 million
total in what is typically a quarter when companies begin to hire new
staff before the vacation season as well as the sales period in the
retail sector. In total, the Spanish economy has added 434,400 new jobs
over the past 12 months as the recovery continued despite the political
uncertainty that has dominated the nation with two elections in half a
year. (Source: Bloomberg)
Japan: Industrial output beats estimates, retail sales
rise. Japan’s industrial production rose more than economists forecast
while retail sales eked out a first time gain in three months. The
indicators add a mixed signal ahead of the Bank of Japan’s policy
decision, after weakness in data on consumer prices and household
spending. Output rose 1.9% (estimate 0.5%) in June from May, the trade
ministry reported. Retail sales rose 0.2%. (Source: Bloomberg)
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Other News:
DRB-Hicom: Shareholders OK sale of certain assets to Pos
for MYR818m. DRB-Hicom's shareholders approved its corporate exercise to
dispose of certain assets to its associate Pos Malaysia. Under the
corporate exercise, DRB-Hicom proposed to dispose of the entire issued
and paid-up capital of its unit, KL Airport Services Sdn Bhd (KLAS), for
MYR749.35m. The second resolution is a disposal of an indirect wholly
owned subsidiary, Hicom Indungan Sdn Bhd, as part of a freehold
industrial land in Section 28, Shah Alam, Selangor for MYR69m. The
disposals to Pos Malaysia will be satisfied via the issuance of 245.74
million new shares of 50sen each in Pos Malaysia to Hicom Holdings at an
issue price of MYR3.33 per Pos Malaysia share. For the second resolution,
it received 99.99% of the votes representing 1.487 billion
shares.(Source: The Star)
Maxis: Partners with Vodafone to provide IoT solutions to
M'sia businesses. Maxis is teaming up with global telecommunications firm
Vodafone to provide customised Internet of Things (IoT) solutions to
Malaysian businesses, especially small and medium enterprises. The IoT is
about connecting devices over the internet, allowing them to talk to us
and each other by sending and receiving data. This is drastically
changing the way people live and work. The technology is currently used
in many sectors including automotive, security, manufacturing and
logistics to improve efficiency and reduce cost. (Source: The Edge
Financial Daily)
MPCorp: Signs MoU to sell rest of Wisma MPL for MYR250m.
The property developer, Malaysia Pacific Corp (MPCorp) has entered into a
memorandum of understanding (MoU) to sell part of Wisma MPL in Kuala
Lumpur (excluding units previously sold) to Terra Pontus Pte Ltd, an
investment holding company incorporated in Singapore for MYR250m in cash.
Wisma MPL at Jalan Raja Chulan is a 23-storey office complex, comprising
a 19-storey office tower over a four-storey retail podium block, together
with a two-level basement car park. MPCorp had said it was actively
identifying prospective investors for the disposal of Wisma MPL and/or
the landed properties situated in Mukim of Plentong, Johor, as a
long-term solution to address the default in repayment of outstanding
banking facilities to RHB Bank Bhd and the company’s financial condition.
(Source: The Star)
Aspen: Aims to seal Yi-Lai RTO deal next week. Aspen
expects to ink a share sale agreement (SSA) with Yi-Lai by next week for
its MYR550m reverse takeover (RTO) of the ceramics tile manufacturer. The
parties was supposed to entered into a definitive agreement 90 days from
the date of heads of agreement (HoA) on 24 Feb this year, but have
extended the deadline twice. Aspen chief executive officer, Datuk M.
Murly said, the extension was because the group has yet to obtain approval
from Securities Commission Malaysia (SC) for the RTO. (Source: The Edge
Financial Daily)
TH Heavy: Gets LoI to supply vessels to MMEA. TH Heavy
Engineering has received a non-binding letter of intent (LoI) for the
supply, delivery, testing and commissioning of three Offshore Patrol
Vessels units, complete with fittings and accessories (OPV) for the
Malaysian Maritime Enforcement Agency (MMEA).TH Heavy would be securing a
deal worth MYR700m to build at least two of such vessels for the MMEA.
This however, subject to a mutual agreement being reached between MMEA
and the company, wherein the company will make further announcement on
the matter. (Source: The Edge Financial Daily)
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