|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.75
|
|
Target
Price:
|
MYR2.28
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
“Cabin crew,
prepare to take-off”
|
|
We are excited over VSI’s growth prospect especially in
the box-build segment in its Malaysia operation which saw the first
production line gain optimal production efficiency at end-Mar 2017.
Post yesterday’s update meeting, we raise our FY17-19 earnings forecasts
by 8%-24% as we lift (i) our box-build order forecasts and (ii) China’s
contribution from the air purifier segment. Correspondingly, our new TP
is MYR2.28 (+21%), on unchanged 14x CY18 PER (30% premium to peers
valuations). BUY.
|
|
|
|
|
|
|
FYE Jul (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
1,936.9
|
2,175.6
|
2,968.4
|
3,978.9
|
|
EBITDA
|
239.2
|
226.4
|
321.3
|
420.7
|
|
Core net profit
|
135.7
|
135.1
|
171.7
|
236.3
|
|
Core FDEPS (sen)
|
10.4
|
8.5
|
10.9
|
14.9
|
|
Core FDEPS growth(%)
|
111.8
|
(18.2)
|
27.2
|
37.6
|
|
Net DPS (sen)
|
4.8
|
4.7
|
5.6
|
7.2
|
|
Core FD P/E (x)
|
16.8
|
20.5
|
16.1
|
11.7
|
|
P/BV (x)
|
2.9
|
2.6
|
2.1
|
1.8
|
|
Net dividend yield (%)
|
2.7
|
2.7
|
3.2
|
4.1
|
|
ROAE (%)
|
20.4
|
14.2
|
16.7
|
18.0
|
|
ROAA (%)
|
8.0
|
7.0
|
8.1
|
9.7
|
|
EV/EBITDA (x)
|
8.5
|
9.2
|
8.6
|
6.8
|
|
Net debt/equity (%)
|
17.2
|
18.4
|
9.6
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR4.90
|
|
Target
Price:
|
MYR5.05
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Fending off cost
inflation
|
|
We are turning positive on Hartalega given the easing of
nitrile competition. Despite the sharp jump in NBR price, the less
competitive environment allows Hartalega to pass on the cost promptly.
We raise our FY17-19 EPS by 3%/15%/15% as we raise our sales volume and
ASP assumptions. Rolling forward our valuation to CY18, our TP is
raised to MYR5.05 (from MYR3.80) on an unchanged 21x PER (5-year mean).
Hartalega is now a HOLD (from SELL).
|
|
|
|
|
|
|
FYE Mar (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
1,146.0
|
1,498.3
|
1,781.2
|
2,195.7
|
|
EBITDA
|
321.6
|
386.8
|
424.8
|
533.0
|
|
Core net profit
|
209.7
|
257.6
|
284.2
|
362.6
|
|
Core FDEPS (sen)
|
13.4
|
15.5
|
17.1
|
21.9
|
|
Core FDEPS growth(%)
|
(15.1)
|
16.3
|
10.3
|
27.6
|
|
Net DPS (sen)
|
6.5
|
8.0
|
8.7
|
11.0
|
|
Core FD P/E (x)
|
36.7
|
31.5
|
28.6
|
22.4
|
|
P/BV (x)
|
6.0
|
5.4
|
4.9
|
4.4
|
|
Net dividend yield (%)
|
1.3
|
1.6
|
1.8
|
2.3
|
|
ROAE (%)
|
na
|
na
|
na
|
na
|
|
ROAA (%)
|
16.4
|
15.1
|
13.6
|
15.3
|
|
EV/EBITDA (x)
|
20.7
|
21.0
|
19.5
|
15.7
|
|
Net debt/equity (%)
|
net cash
|
10.9
|
14.6
|
18.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACRO RESEARCH
|
|
|
|
|
|
|
|
Brent Crude Oil – Back on bull track
by Tee
Sze Chiah
|
|
|
|
|
|
|
|
|
|
|
Late buying support lifted FBMKLCI higher. At day’s
end, the benchmark rose 1.70pts to close at 1,747.19. Market breadth,
however, was more positive with gainers outpaced losers by 533 to
384. A total of 3.97b shares worth MYR2.85b changed hands. Yesterday’s
gain also validated the “Bullish Harami” formed on Monday. Along with
firmer US markets overnight, we expect FBMKLCI to edge higher,
possibly between 1,745 and 1,760 today. Support is pegged at 1,736
and 1,715.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
U.S: Trade deficit narrowed in February to four-month low
as imports declined and exports improved amid a brighter outlook for
global manufacturing, Commerce Department data showed. Gap decreased 9.6%
to USD 43.6b from a revised USD 48.2b in January. January gap was
originally estimated at USD 48.5b. (Source: Bloomberg)
Italy: House prices show first year-on-year rise since
2011. Italian house prices posted a slim rise in the fourth quarter, the
first gain in five years, as the country slowly emerges from a
record-long recession. Prices increased 0.1% YoY from the same period of
2015, national statistics bureau Istat said in a report. That’s the first
annual gain since the fourth quarter of 2011. Prices were unchanged from
the previous quarter, while values for the whole of 2016 fell 0.7% YoY,
the report also showed. That marked the eighth consecutive annual drop.
(Source: Bloomberg)
S. Korea: BOK’s Lee says sentiment showing signs of
improvement. Bank of Korea Governor Lee Ju-yeol said S. Korea’s consumer,
corporate sentiment is showing signs of improvement and the economy is
continuing gradual growth on exports. Lee who made the comments at a
meeting with economists also said it’s hard to be optimistic on continued
exports recovery considering the strengthening of trade protectionism
trend. Policy efforts are needed to restore consumption recovery; raising
income with more jobs would be the fundamental solution. (Source:
Bloomberg)
Australia: RBA swats away hawks as job market unease
signals extended pause. Australian policy makers left hawks in the lurch
as they painted a weaker picture of employment, signaling an extended
pause on interest rates and sending the currency lower. Governor Philip
Lowe kept the cash rate at a record-low 1.5%, saying “some indicators of
conditions in the labor market have softened recently” and “employment
growth is modest,” in his statement. The jobless rate climbed to 5.9% in
February, the highest since the start of last year. (Source: Bloomberg)
Crude Oil: China becomes U.S.’s biggest oil buyer as
exports hit record. China became the biggest buyer of U.S. crude oil in
February, surpassing Canada, at a time when OPEC is cutting back output.
China imported 8.08 million barrels of U.S. light crude, nearly
quadrupling its January purchases, according to data released by the U.S.
Census Bureau. That helped boost U.S. exports to a record 31.2 million
barrels during the month. Canada, the U.S.’s largest trade partner,
imported 6.84 million, down 20 percent from a month earlier. (Source:
Bloomberg)
|
|
|
|
|
|
|
Other News:
Mudajaya: Bags MYR58.3m LRT3 job. The group has bagged a
MYR58.29m job from Prasarana Malaysia Bhd for the Light Rail Transit Line
3 (LRT3) from Bandar Utama to Johan Setia, in Selangor.The contract is
for the manufacture, supply and delivery of precast pier caps and related
works.The project is to start by the second quarter of 2017 and be
completed by the end of 2019. In a separate announcement, Mudajaya said
it received a letter of notification from its investment company in
India, RKM Powergen Pvt Ltd, that its Unit 1 started the sale of 200MW
electricity to several power distribution companies in Uttar Pradesh on
April 2. (Source: The Sun Daily)
Icon: Gets MYR8m contract from Halliburton. The group has
been awarded a MYR8m contract for the provision of a platform supply
vessel for Halliburton Energy Services S/B. The contract began on March
7, 2017 and is for up to nine months. It will contribute positively to
the earnings and net assets of the Icon group for the financial year
ending Dec 31, 2017 and beyond. (Source: The Sun Daily)
Sasbadi: Bags MYR6.8m job to supply three Year Two
textbooks. Sasbadi has secured three contracts from the Ministry of
Education to publish and supply Mathematics, Arts Education and Chinese
Language textbooks worth a collective MYR6.81m. The three texbooks, said
Sasbadi in a filing with Bursa Malaysia today, will be supplied to all
Year 2 students at Chinese national-type primary schools throughout the
country for about three years. The job, which commenced on March 31, will
end on Dec 31, 2019. (Source: The Edge Financial Daily)
|
|
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.