IHH Healthcare: Unit accepts MYR5.44b banking facility. IHH Healthcare’s indirect wholly-owned subsidiary, Parkway Pantai Ltd, has accepted a multi-currency banking facility for a total amount

COMPANY RESEARCH Berjaya Sports Toto | Strongest STM sales/draw YoY growth in a while Samuel Yin Shao Yang

SECTOR RESEARCH Malaysia Aviation | Maturing sensibly Mohshin Aziz

NEWS Outside Malaysia Other News

COMPANY RESEARCH

Malaysia Results Review Berjaya Sports Toto (BST MK) by Samuel Yin Shao Yang Share Price: MYR3.32 Target Price: MYR3.15 Recommendation: Hold Strongest STM sales/draw YoY growth in a while 1QFY4/17 earnings and dividends were marginally below expectations due to a slightly higher than expected prize payout ratio. That said, we note with great interest that Sports Toto Malaysia (STM) sales/draw grew 4% YoY despite the still weak consumer sentiment. This reaffirms our belief that the number forecasting industry is stabilising after years of recession. We leave our earnings estimate, dividend estimate, HOLD call and MYR3.15 unchanged for now. FYE Apr (MYR m) FY15A FY16A FY17E FY18E Revenue 5,283.6 5,563.2 5,499.6 5,562.9 EBITDA 566.4 508.6 515.4 520.6 Core net profit 343.5 306.2 316.1 325.9 Core EPS (sen) 25.5 22.7 23.5 24.2 Core EPS growth (%) (0.6) (11.0) 3.3 3.1 Net DPS (sen) 21.5 19.0 20.5 21.0 Core P/E (x) 13.0 14.6 14.2 13.7 P/BV (x) 6.5 5.9 5.6 5.3 Net dividend yield (%) 6.5 5.7 6.2 6.3 ROAE (%) 55.1 42.3 40.3 39.4 ROAA (%) 15.6 12.6 12.3 13.1 EV/EBITDA (x) 8.3 8.8 9.3 9.2 Net debt/equity (%) 35.0 35.5 28.5 21.3 Samuel Yin Shao Yang    (603) 2297 8916    samuel.y@maybank-ib.com

SECTOR RESEARCH MY: Malaysia Aviation Sector Note by Mohshin Aziz Maturing sensibly Malaysia’s long-term air traffic CAGR (2004-13) was 9% p.a., but the 2014 triple disasters have brought it down to 2% during 2014-16F. We forecast 4-5% as the ‘new normal’ growth rate going forward due to slowing population growth, skewed demographics towards a less travelling age-group, and rising costs as the government is moving towards making the industry self-sustainable. In many ways, Malaysia’s air travel industry is getting close to becoming a mature market akin to the US and Europe. Mohshin Aziz    (603) 2297 8692    mohshin.aziz@maybank-ib.com

NEWS Outside Malaysia: U.S: Confidence among homebuilders climbs to an 11-month high in September, indicating the housing market will continue to advance, according to data from the National Association of Home Builders/Wells Fargo. Builder sentiment gauge increased to 65 (forecast was 60) from a revised 59; readings greater than 50 indicate more respondents reported good market conditions. Gauge of prospective buyer traffic rose to 48, the highest since November, from 44. Measure of six-month sales outlook climbed to an 11-month high of 71 from 66. Index of current sales rose by 6 points to 71, the best reading since October 2005. (Source: Bloomberg) U.K: London house prices rebounded this month after four straight declines, reflecting a pickup in the market as the seasonal summer lull ended. Asking prices in the U.K. capital rose 1.9% from August to GBP 630,974 (USD 825,000), real-estate website Rightmove said. It added that the recovery this month was “exaggerated by seasonal volatility, with more owners of expensive properties coming to market after the end of the summer holidays.” The monthly figures don’t paint a full picture of London’s housing market. Asking prices in the city’s most expensive district -- Kensington and Chelsea -- have fallen almost 12% in the past year, while there’s been an 11% increase in Barking and Dagenham -- the cheapest borough, Rightmove said. (Source: Bloomberg) China: Home prices rose in more cities in August, suggesting that local government attempts to cool housing prices are having a limited impact. New-home prices, excluding government-subsidized housing, last month gained in 64 of the 70 cities the government tracks, compared with 51 in July, the National Bureau of Statistics said. Prices fell in four cities, compared with 16 a month earlier. They were unchanged in two. Curbs on home purchases and lending, which have spread from major cities such as Shanghai and Shenzhen to regional hubs, have yet to dent overall market sentiment buoyed by stimulus measures rolled out since November 2014. The value of home sales jumped 33% last month from a year earlier, the fastest pace in four months. (Source: Bloomberg) China: Said to plan USD 150b of added public-private projects. China’s Ministry of Finance has selected about CNY 1tr ($150 billion) worth of additional public- private partnership projects, people familiar with the matter said. The projects will be announced after receiving final approvals, according to the people, who asked not to be identified because the information isn’t public. The Finance Ministry has narrowed down the list to 516 projects out of more than 1,000 proposed by local governments, one of the people said. It’s unclear how much of the funding the government will provide. (Source: Bloomberg) Other News: IHH Healthcare: Unit accepts MYR5.44b banking facility. IHH Healthcare’s indirect wholly-owned subsidiary, Parkway Pantai Ltd, has accepted a multi-currency banking facility for a total amount equivalent to MYR5.44b. The facility was a multi-currency facility involving Singapore dollars, Hong Kong dollars and US dollars, for a total amount equivalent to SGD1.8b. The unsecured multi-currency five-year revolving credit facility would be utilised for refinancing, corporate funding, working capital requirements, as well as investments and project financing. (Source: The Star) NWP: Banks on construction business to turn around. NWP was recently awarded a MYR744m turnkey construction project by M2B World (M) Sdn Bhd to construct a total of 3,855 houses for six projects under Syarikat Perumahan Negara Bhd (SPNB) and Perbadanan PR1MA Malaysia, with an expected net margin of 15%. The company is expected to obtain a Grade G7 contractor licence from the Construction Industry Development Board in one to two weeks. The licence will enable NWP to tender for sizeable government and private projects. (Source: The Sun Daily) Petronas Gas: Linde, Petronas Gas team up to invest EUR150m in industrial air gas facility. Supplier of industrial and medical gases Linde Malaysia Sdn Bhd has established a joint-venture company with Petronas Gas named Pengerang Gas Solution Sdn Bhd (PGS), which will invest EUR150m (MYR620m) in an industrial air gas facility to supply the needs of the Petronas’ Refinery and Petrochemicals Integrated Complex within the Pengerang Integrated Petroleum Complex. PGS has secured long-term agreements for the supply of oxygen and nitrogen to the world-scale refinery and petrochemical complex, which includes an ethylene oxide/ethylene glycol plant. PGS will build two large air separation units and associated gas facilities. (Source: The Sun Daily) Petronas Gas: Linde, Petronas Gas team up to invest EUR150m in industrial air gas facility. Supplier of industrial and medical gases Linde Malaysia Sdn Bhd has established a joint-venture company with Petronas Gas named Pengerang Gas Solution Sdn Bhd (PGS), which will invest EUR150m (MYR620m) in an industrial air gas facility to supply the needs of the Petronas’ Refinery and Petrochemicals Integrated Complex within the Pengerang Integrated Petroleum Complex. PGS has secured long-term agreements for the supply of oxygen and nitrogen to the world-scale refinery and petrochemical complex, which includes an ethylene oxide/ethylene glycol plant. PGS will build two large air separation units and associated gas facilities. (Source: The Sun Daily) Poh Huat Resources: Buys AUD4.25m warehouse in Australia. Poh Huat Resources Holdings is buying a detached warehouse cum office-showroom in Dandenong, Victoria, Australia for AUD4.25m (MYR13.29m). The acquisition was the first step for the group in establishing an operational base in Australia. The acquisition is expected to be completed by December 2016. (Source: The Star)