|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR7.62
|
|
Target
Price:
|
MYR7.65
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Great start to
2017
|
|
1Q17 results (out end-Apr) will be a windfall underpinned
by strong volume and higher ASP. We estimate PCHEM’s utilisation rate
to exceed 90% given there was no unscheduled factory shutdown.
Petrochemical prices have surged on better demand and inventory levels
and also higher crude oil prices. We keep our earnings forecasts
unchanged pending the actual results, and retain our MYR7.65 TP based
on 8.5x 2017 EV/EBITDA which is on par with global peers. Maintain
HOLD.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
13,536.0
|
13,860.0
|
14,124.3
|
15,080.8
|
|
EBITDA
|
5,036.0
|
5,388.0
|
6,112.5
|
5,877.3
|
|
Core net profit
|
2,754.0
|
3,140.0
|
3,511.0
|
3,236.8
|
|
Core EPS (sen)
|
34.4
|
39.3
|
43.9
|
40.5
|
|
Core EPS growth (%)
|
(1.3)
|
14.0
|
11.8
|
(7.8)
|
|
Net DPS (sen)
|
18.0
|
18.3
|
21.9
|
20.2
|
|
Core P/E (x)
|
22.1
|
19.4
|
17.4
|
18.8
|
|
P/BV (x)
|
2.5
|
2.3
|
2.1
|
2.0
|
|
Net dividend yield (%)
|
2.4
|
2.4
|
2.9
|
2.7
|
|
ROAE (%)
|
na
|
na
|
na
|
na
|
|
ROAA (%)
|
9.3
|
10.0
|
10.7
|
9.4
|
|
EV/EBITDA (x)
|
10.2
|
9.2
|
8.8
|
9.0
|
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
MACRO RESEARCH
|
|
|
|
|
|
|
|
EM Psychological Barrier is Near
by Tee
Sze Chiah
|
|
|
|
|
|
|
|
|
|
|
FBMKLCI failed to hold onto its early gains. At day’s
end, the benchmark fell 4.01pts to 1,750.41. Broader market fared
much better with gainers outpaced losers by 522 to 402. A total of
3.39b shares worth MYR2.61b changed hands yesterday. Technically, a bearish
engulfing candlestick pattern was spotted on the daily chart. If the
index ends lower today, it would imply that the benchmark is heading
for further correction in the near-term. We expect the index to move
between 1,740 and 1,750 today.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
U.S: Pending sales of existing homes rise most since 2010.
Contracts to buy previously owned U.S. homes jumped in February by the
most since July 2010, according to figures released by the National
Association of Realtors in Washington. Pending home sales index rose 5.5%
after declining 2.8% the prior month. Index fell 2.4% YoY on an
unadjusted basis. Pending sales increased in increased in all four U.S
regions month-to-month. (Source: Bloomberg)
U.K: Consumers are borrowing less freely as inflation
bites and Britain prepares for Brexit, though the slowdown may not be
enough to dispel concerns over the level of personal debt. Unsecured
lending growth slowed to GBP 1.4b (USD 1.7b) in February, below the GBP
1.6b averaged over the previous six months, data published by the Bank of
England. It left the annual rate at 10.5%, and borrowing on credit cards
grew at the fastest pace in 11 years. (Source: Bloomberg)
U.K: Starts claw back of EU laws as May aims to regain
control. U.K. Prime Minister Theresa May will begin to take back control
over thousands of European Union laws, under plans designed to satisfy
the desire of Brexit supporters to put power back in the hands of British
legislators. May’s team will publish proposals to incorporate an
estimated 19,000 Europe-based rules into U.K. law on the day Britain
leaves the EU. The so-called Great Repeal Bill will enable ministers and
lawmakers in London to decide which bits of European legislation to keep,
and to scrap the rest. (Source: Bloomberg)
Vietnam: Economy grew at a slower pace than estimated in
1Q 2017 as industrial output eased and Samsung Electronics Co. cut
production of smartphones. GDP rose 5.1% YoY, the General Statistics
Office said. A drop in Samsung’s output in Vietnam contributed to a 10.7%
YoY contraction in exports of phones and parts, dragging down electronics
production. (Source: Bloomberg)
Crude Oil: OPEC oil exports seen dropping further in March
by cargo tracker. OPEC’s oil exports dropped further this month as
several countries not bound by the group’s historic supply deal curbed
shipments, according to cargo-tracking company Kpler SAS. Iran, which was
permitted to increase output in last year’s supply deal, led the declines
with a drop in exports of 416,000 barrels a day to 2.185 million,
according to cargo data compiled by Paris-based Kpler. Nigeria and Libya
-- exempt from the agreement -- reduced shipments by a combined 209,000
barrels a day. The United Arab Emirates showed the first significant
export drop since the accord came into force in January, with a reduction
of 220,000 barrels a day. (Source: Bloomberg)
|
|
|
|
|
|
|
Other News:
Kuantan Flour Mills: Plans private placement, rights
issue. Kuantan Flour Mills (KFM) is proposing a private placement and a
five-for-two rights issue to raise money for debt repayment and working
capital. The 20.46m placement shares and up to 221.74m rights shares will
be issued at 20 sen per share. The private placement , representing 30%
of KFM’s total shares, would be taken up by Lotus’ controlling
shareholder and director Wong Sak Kuan, and another director, Wong Kim
Loong. The placement is expected to raise MYR4.09m in gross proceeds.
(Source: The Edge Financial Daily)
E&O: Finds partner to kick-start STP Phase 2A. E&O
is believed to have found a strategic investor who will pump in fresh
capital to kick-start its second massive land reclamation project Phase
2A of the Seri Tanjung Pinang (STP) development. A large local fund has
been in talks with E&O on taking up an equity stake in the
sea-fronting development project near Penang island. The project, Phase
2A, involves reclaiming 253 acres (102.38ha) of land, which has an
estimated GDV of MYR20b. (Source: The Edge Financial Daily)
Bintai Kinden: Bags MYR45m contract. Bintai Kinden Corp
has secured a SGD14.2m (MYR44.94m) contract for sub-contract works to the
existing Raffles Hotel and Shopping Arcade in Singapore. The contract is
non-renewable with a fixed contract period, and the sub-contract work is
expected to be completed by June 2018. Bintai Kinden’s 69.82%-owned
subsidiary, Bintai Kidenko Pte Ltd, is to carry out the supply, delivery,
installation, testing and commissioning works, including the maintenance
for mechanical and electrical works in respect of the proposed additions
and alterations to the three-storey building with a basement carpark.
(Source: The Star)
|
|
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.