Thursday, March 16, 2017

TSR Capital: Bags MYR120m job from ECER Development Council. TSR Capital has landed a MYR119.74m contract to build a stretch of road linked to Kuantan Port City, Pahang, as well as other related works. Its unit TSR Bina S/B had on Wednesday received a letter of



break

break


COMPANY RESEARCH





TP Revision





Berjaya Food (BFD MK)
by Kevin Wong





Share Price:
MYR1.86
Target Price:
MYR1.70
Recommendation:
Hold




3QFY17: Another drag by Kenny Rogers

3QFY4/17 results were below estimates on continous earnings drag by Kenny Rogers Roasters (KRR) in Malaysia and Indonesia. However, 3rd net DPS of 1.0sen was in line (YTD: 2.5sen). We lower our FY17-19 earnings forecasts by 8-16% but raise TP to MYR1.70 (+5sen), pegged to unchanged -0.5SD of forward PER mean which is now at 27x, on FY18 earnings.



FYE Apr (MYR m)
FY15A
FY16A
FY17E
FY18E
Revenue
376.8
554.4
600.5
671.0
EBITDA
214.2
79.7
74.6
91.3
Core net profit
25.7
21.3
17.9
24.3
Core FDEPS (sen)
6.8
5.6
4.7
6.4
Core FDEPS growth(%)
(2.4)
(17.6)
(15.7)
35.5
Net DPS (sen)
5.8
4.3
2.5
3.4
Core FD P/E (x)
27.4
33.2
39.5
29.1
P/BV (x)
1.8
1.8
1.7
1.7
Net dividend yield (%)
3.1
2.3
1.4
1.8
ROAE (%)
63.7
5.4
4.5
5.9
ROAA (%)
5.7
2.9
2.3
3.1
EV/EBITDA (x)
5.1
11.1
12.3
10.0
Net debt/equity (%)
39.8
49.3
56.9
54.6








MACRO RESEARCH






Cautious locals as tourists return
by Suhaimi Ilias


Economics Research





Distributive Trade Index (DTI) growth slowed in Jan 2017 to +5.6% YoY (Dec 2016: +6.5% YoY) on moderation in wholesale trade index (Jan 2017: +5.4% YoY; Dec 2016: +6.8% YoY) and retail trade index (Jan 2017: +7.0% YoY; Dec 2016: +8.4% YoY) while motor vehicle trade index rebounded (Jan 2017: +2.4% YoY; Dec 2016: 0.3% YoY).












Asia Pacific’s breakout move ahead
by Tee Sze Chiah


Technical Research





FBMKLCI declined 5.11pts to close at 1,714.36 yesterday as investors took a more cautious stance ahead of FOMC meeting. Broader sentiment was negative with losers’ outpaced gainers by 480 to 395. A total of 3.30b shares worth MYR2.22b were recorded yesterday. Following a rate hike by the Fed which subsequently led to a run-up in overnight US markets, we expect a positive spillover effect on the local equity market today.







NEWS


Outside Malaysia:

U.S: Yellen calms fears Fed’s policy trigger finger is getting itchy. Federal Reserve Chair Janet Yellen sought to reassure investors that the central bank’s latest interest-rate increase wasn’t a paradigm shift to a trigger-happy policy driven by fears of faster inflation. Speaking to reporters after the Fed’s quarter percentage- point move, Yellen said the central bank was willing to tolerate inflation temporarily overshooting its 2% goal and that it intended to keep its policy accommodative for “some time.” “The simple message is the economy’s doing well. We have confidence in the robustness of the economy and its resilience to shocks,” she said. (Source: Bloomberg)

U.S: Chinese treasury holdings dip in January amid capital flight, as the world’s second-largest economy used its foreign-exchange reserves to support the yuan. Japan, America’s largest foreign creditor, increased its holdings for the first month in six. A monthly Treasury Department report released showed China held USD 1.05tr in U.S. government bonds, notes and bills in January, down USD 7.3b from December. The selling may be more severe than the data suggested, as the tally of Belgium, where analysts say is home to Chinese custodial accounts, dropped USD 8.2b to USD 112b, the lowest since August 2015. (Source: Bloomberg)

S. Korea: Park leaves behind big problem of youth unemployment. Former South Korean President Park Geun-hye left behind a number of unsolved problems and one of the biggest is high youth unemployment. The unadjusted unemployment rate in February for those aged 15-29 was 12.3%, compared with an overall seasonally adjusted jobless rate of 4.0%, Statistics Korea said. Youth unemployment rose to a record high last year despite the Park administration’s efforts to help more young people secure jobs. In 2015, Park announced a plan to reduce youth unemployment, and last year included KRW 1.9t (USD 1.7b) in a supplementary budget to create new jobs and provide training for Korea’s youth. (Source: Bloomberg)

Hong Kong: Raises base rate for third time since 2006 after Fed. Hong Kong’s de facto central bank raised its base rate for the third time in a decade, following the Federal Reserve’s lead to maintain the city’s currency peg to the dollar. The Hong Kong Monetary Authority increased the borrowing cost by 25 basis points to 1.25%, according to HKMA data, after the Fed elevated its target range by a quarter of a percentage point. Under a linked exchange-rate system in place since 1983, Hong Kong must follow U.S. monetary policy. The city last boosted its base rate in December 2016. (Source: Bloomberg)





Other News:

MY EG SERVICES: To expand to the Philippines in first overseas venture. MyEG is making its first overseas foray, forming a partnership to develop and implement electronic government (e-government) service projects in the Philippines. It had on Wednesday entered into a JV agreement with I-Pay Commerce Ventures, Inc (IPCVI), a payment processing provider and a direct agent of Western Union in the Philippines. MyEG will have a 40% stake in the JV and will invest up to USD2m (MYR8.9m) in three tranches subject to certain milestones being achieved by the JV company. IPCVI will contribute USD400,000 (MYR1.8m). (Source: The Star)

Malakoff: Unit Tanjung Bin Energy issues MYR800m sukuk. Malakoff Corp’s subsidiary, Tanjung Bin Energy S/B, has issued MYR800m sukuk wakalah to raise funds to redeem an outstanding junior term loan for a turnkey contract with its parent company. The aggregate amount of the loan from the contract established between the two parties on Feb 23, 2012 is MYR1.29b. The Sukuk Wakalah is backed by an unconditional and irrevocable subordinated cash deficiency support from MCB (Malakoff) under which MCB shall agree to pay such sums expressed to be from time to time due and payable under the Sukuk Wakalah. (Source: The Sun Daily)

TSR Capital: Bags MYR120m job from ECER Development Council. TSR Capital has landed a MYR119.74m contract to build a stretch of road linked to Kuantan Port City, Pahang, as well as other related works. Its unit TSR Bina S/B had on Wednesday received a letter of acceptance from East Coast Economic Region Development Council (ECERDC) to construct part of the Port Link Road plus a toll plaza, trumpet interchange, and inner road and drainage diversion works under phase 2 of the Malaysia-China Kuantan Industrial Park (MCKIP). T he project would have a construction period of 130 weeks starting from the date of site possession. (Source: The Star)

F&N: Launches MYR31.5m UHT line in Kuching. F&N has launched a new MYR31.5m ultra-high temperature (UHT) processing line at its plant in Kuching to meet growing demand in East Malaysia. The first-of-its-kind UHT line in Sarawak, will allow the group to capture increasing demand with an added capacity of 3.4m cases a year. The new line is expected to offer the group an estimated annual savings of MYR2.8m in logistics cost over the next decade. (Source: The Sun Daily)

Scomi: Teams up with solar firm to bid for contracts. Scomi Group is teaming up with solar power firm Synergy Generated S/B to bid for engineering, procurement and construction (EPC) contracts in the renewable energy sector, particularly for photovoltaic solar farms. The two groups will set up a JV company which it will have a 51% interest and Synergy Generated the remaining 49%. Besides EPC solutions, the JV company will also offer operation and maintenance services for solar projects. (Source: The Edge Financial Daily)


No comments:

Post a Comment

Related Posts with Thumbnails