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Share
Price:
|
MYR3.40
|
|
Target
Price:
|
MYR4.30
|
|
Recommendation:
|
Buy
|
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FPSO JAK
achieves 1st oil production
|
|
Yinson achieving 1st oil production for FPSO JAK, 3 months
ahead of schedule, is a positive. Being re-admitted into the SC’s
Shariah list by month-end is another. Securing a supplementary charter
for FPSO Lam Son will cap its short-term positives, negating the
latter’s earlier setback. We raised FY18 earnings forecasts by 16% and
reiterate our BUY call on Yinson. Valuations are undemanding with
strong earnings growth prospects, cashflow strength and steady
execution capabilities.
|
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|
FYE Jan (MYR m)
|
FY16A
|
FY17A
|
FY18E
|
FY19E
|
|
Revenue
|
1,038.6
|
764.2
|
893.2
|
1,139.7
|
|
EBITDA
|
261.0
|
283.8
|
509.2
|
697.6
|
|
Core net profit
|
173.1
|
219.5
|
264.0
|
274.4
|
|
Core EPS (sen)
|
16.2
|
20.6
|
24.7
|
25.7
|
|
Core EPS growth (%)
|
17.5
|
26.8
|
20.3
|
3.9
|
|
Net DPS (sen)
|
1.5
|
16.8
|
1.8
|
1.9
|
|
Core P/E (x)
|
21.0
|
16.5
|
13.7
|
13.2
|
|
P/BV (x)
|
1.6
|
1.5
|
1.5
|
1.3
|
|
Net dividend yield (%)
|
0.4
|
4.9
|
0.5
|
0.6
|
|
ROAE (%)
|
12.0
|
8.5
|
10.8
|
10.5
|
|
ROAA (%)
|
4.8
|
3.9
|
4.1
|
4.2
|
|
EV/EBITDA (x)
|
15.6
|
21.4
|
12.8
|
8.7
|
|
Net debt/equity (%)
|
51.9
|
114.7
|
115.7
|
89.9
|
|
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Share
Price:
|
MYR1.54
|
|
Target
Price:
|
MYR1.80
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
Within
expectation
|
|
9MFY6/17 net profit of MYR11.8m (+2% YoY), which met only
70% of our full-year estimate, is in-line as we expect a stronger
4QFY17 on the back of a recovery in car production by its clients
(Perodua, Toyota, Nissan). Our forecasts are unchanged. Maintain BUY on
Pecca with an unchanged MYR1.80 TP (14.5x CY17 EPS) for an exposure to
(i) Perodua, especially for the Myvi model launch in 3Q17, (ii)
potential aviation contract win.
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FYE Jun (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
129.5
|
126.3
|
130.9
|
157.8
|
|
EBITDA
|
27.7
|
22.6
|
24.1
|
31.7
|
|
Core net profit
|
17.9
|
16.5
|
17.0
|
22.8
|
|
Core EPS (sen)
|
9.5
|
8.8
|
9.1
|
12.1
|
|
Core EPS growth (%)
|
23.8
|
(8.0)
|
3.2
|
33.8
|
|
Net DPS (sen)
|
4.4
|
4.0
|
4.5
|
6.1
|
|
Core P/E (x)
|
16.2
|
17.6
|
17.0
|
12.7
|
|
P/BV (x)
|
4.1
|
1.8
|
1.7
|
1.6
|
|
Net dividend yield (%)
|
2.9
|
2.6
|
2.9
|
3.9
|
|
ROAE (%)
|
27.6
|
12.7
|
10.5
|
13.3
|
|
ROAA (%)
|
17.5
|
11.3
|
9.1
|
11.5
|
|
EV/EBITDA (x)
|
na
|
9.4
|
8.1
|
6.2
|
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
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|
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|
|
|
|
|
|
Share
Price:
|
SGD0.77
|
|
Target
Price:
|
SGD0.96
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
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|
|
In a sweet spot
|
|
Slowdown in new planting will lift and boost BAL’s
positive FCF in FY17-19. BAL is considering raising its dividend payout
to up to 50% (from 20%) from FY17. We raise our payout assumptions to
30% (from 20%) leading to FY17-19 net dividend yields of 2.6-3.6%.
Trading at just 11x FY17 PER with strong 2-year forward EPS CAGR of
28%, BAL remains a BUY with an unchanged SGD0.96 TP on 14x FY17 PER,
its 4-year mean.
|
|
|
|
|
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|
FYE Dec (IDR b)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
5,542.1
|
6,629.8
|
6,644.1
|
7,653.0
|
|
EBITDA
|
1,579.2
|
1,911.7
|
2,213.9
|
2,720.9
|
|
Core net profit
|
821.2
|
919.0
|
1,138.0
|
1,501.1
|
|
Core EPS (IDR)
|
467
|
523
|
648
|
854
|
|
Core EPS growth (%)
|
(33.7)
|
11.9
|
23.8
|
31.9
|
|
Net DPS (IDR)
|
49
|
143
|
194
|
256
|
|
Core P/E (x)
|
15.8
|
14.1
|
11.4
|
8.7
|
|
P/BV (x)
|
2.3
|
1.9
|
1.7
|
1.5
|
|
Net dividend yield (%)
|
0.7
|
1.9
|
2.6
|
3.5
|
|
ROAE (%)
|
11.8
|
16.2
|
16.0
|
18.7
|
|
ROAA (%)
|
5.8
|
6.3
|
7.5
|
9.4
|
|
EV/EBITDA (x)
|
11.1
|
9.9
|
8.0
|
6.4
|
|
Net debt/equity (%)
|
79.5
|
57.8
|
43.7
|
31.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR24.84
|
|
Target
Price:
|
MYR26.40
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Results
frontloaded in 1H
|
|
Results were within expectations. We believe KLK’s FY9/17
results were front loaded in 1HFY17 on good output and high CPO ASP. We
expect slightly weaker earnings in 2HFY17. An interim DPS of 15sen was
declared. Maintain HOLD with a new TP of MYR26.40 on 26x FY9/18 PER,
pegged to its 5-year mean (previously MYR26.20 on 26x FY9/17 PER).
|
|
|
|
|
|
|
FYE Sep (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
13,650.0
|
16,505.8
|
19,294.7
|
19,003.3
|
|
EBITDA
|
1,578.0
|
1,805.8
|
2,009.3
|
2,010.2
|
|
Core net profit
|
818.7
|
824.5
|
1,096.0
|
1,084.6
|
|
Core EPS (sen)
|
76.7
|
77.2
|
102.7
|
101.6
|
|
Core EPS growth (%)
|
(16.9)
|
0.7
|
32.9
|
(1.0)
|
|
Net DPS (sen)
|
45.0
|
50.0
|
61.6
|
61.0
|
|
Core P/E (x)
|
32.4
|
32.2
|
24.2
|
24.4
|
|
P/BV (x)
|
2.7
|
2.5
|
2.4
|
2.3
|
|
Net dividend yield (%)
|
1.8
|
2.0
|
2.5
|
2.5
|
|
ROAE (%)
|
10.0
|
15.8
|
10.3
|
9.8
|
|
ROAA (%)
|
5.4
|
4.6
|
5.9
|
5.7
|
|
EV/EBITDA (x)
|
16.6
|
16.0
|
14.9
|
14.6
|
|
Net debt/equity (%)
|
24.8
|
22.5
|
21.4
|
16.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR7.87
|
|
Target
Price:
|
MYR8.10
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
1Q17: Within
expectations
|
|
1Q17 results and 1st interim gross DPU of 8.6sen were in
line. Although earnings were mainly lowered by weaker performance at
the hotel and retail segments, we expect a normalisation of occupancy
in 2H17 post Suria KLCC’s tenant remixing exercise. We maintain our
earnings forecasts and MYR8.10 DDM-TP (cost of equity: 7.2%).
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
1,340.2
|
1,343.5
|
1,449.2
|
1,522.6
|
|
Net property income
|
1,004.2
|
1,018.6
|
1,125.2
|
1,163.9
|
|
Distributable income
|
641.3
|
674.6
|
665.2
|
684.7
|
|
DPU (sen)
|
32.5
|
33.0
|
34.3
|
35.4
|
|
DPU growth (%)
|
2.6
|
1.5
|
4.2
|
3.0
|
|
Price/DPU(x)
|
24.2
|
23.9
|
22.9
|
22.3
|
|
P/BV (x)
|
1.1
|
1.1
|
1.1
|
1.0
|
|
DPU yield (%)
|
4.1
|
4.2
|
4.4
|
4.5
|
|
ROAE (%)
|
9.2
|
7.0
|
5.7
|
5.6
|
|
ROAA (%)
|
4.2
|
4.1
|
4.2
|
4.3
|
|
Debt/Assets (x)
|
0.1
|
0.1
|
0.1
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR5.75
|
|
Target
Price:
|
MYR6.90
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Prolonged stiff
competition
|
|
1Q17 core net loss of MYR58m was substantially below
expectations, due to weaker sales volume and ASPs. All cement players
posted weak 1Q17 results as soft demand and stiff competition continue
to drag earnings. However, we think LMC is already trading at depressed
valuations at 1.6x P/B (below -1SD to mean of 1.9x) and USD124 EV/tonne
(below replacement cost). Maintain our EPS forecasts, HOLD call and TP
of MYR6.90 (26x 2017 PER; mean) pending a briefing on 25 May.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
2,750.8
|
2,552.2
|
2,811.7
|
3,137.5
|
|
EBITDA
|
509.4
|
302.1
|
433.3
|
545.9
|
|
Core net profit
|
251.0
|
84.9
|
148.1
|
226.1
|
|
Core EPS (sen)
|
29.5
|
10.0
|
17.4
|
26.6
|
|
Core EPS growth (%)
|
(1.9)
|
(66.2)
|
74.3
|
52.7
|
|
Net DPS (sen)
|
31.0
|
5.0
|
16.6
|
25.3
|
|
Core P/E (x)
|
19.5
|
57.5
|
33.0
|
21.6
|
|
P/BV (x)
|
1.6
|
1.6
|
1.6
|
1.6
|
|
Net dividend yield (%)
|
5.4
|
0.9
|
2.9
|
4.4
|
|
ROAE (%)
|
8.1
|
2.5
|
4.8
|
7.4
|
|
ROAA (%)
|
6.0
|
2.0
|
3.4
|
5.1
|
|
EV/EBITDA (x)
|
14.9
|
20.7
|
11.5
|
8.9
|
|
Net debt/equity (%)
|
1.0
|
4.6
|
2.7
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECTOR RESEARCH
|
|
|
|
|
|
|
|
A blip in Apr 2017’s TIV
by Ivan
Yap
|
|
|
|
|
|
|
|
|
|
|
To our surprise, Apr 2017 TIV reversed 20% MoM to
42.7k units, bringing 4M17 TIV to 183.6k units, but remain within our
2017 forecast of 610k units. We expect the TIV to hover at similar
levels in May before picking up in June, leading up to the Hari Raya festivity
where sales are commonly made. We remain POSITIVE from a bottom-up
stock pick with BUYs on MBM and Pecca for Perodua exposure, and TCM
on trough valuations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACRO RESEARCH
|
|
|
|
|
|
|
|
Sustained YoY GDP growth momentum
by
Suhaimi Ilias
|
|
|
|
|
|
|
|
|
|
|
Index of leading economic indicators rose +1.8% YoY in
Mar 2017 (Feb 2017: +1.1% YoY; revised from +0.8% YoY reported
previously). Our view is the index’s % YoY growth leads GDP % YoY
growth by one quarter, thus signaling sustained economic expansion in
2Q 2017 after the better than expected 1Q 2017 real GDP growth of
+5.6% YoY.
|
|
|
|
|
|
Suhaimi Ilias
|
|
|
|
Zamros
Dzulkafli
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increased further
by
Suhaimi Ilias
|
|
|
|
|
|
|
|
|
|
|
External reserves increased further to USD97.3b as at
15 May 2017 (end-Apr 2017: USD96.1b) on the rise in the foreign
currency reserves component to USD90.7b (end-Apr 2017: USD89.5b).
Latest tally is equivalent to 7.8 months of retained imports and 1.2
times of short-term external debt.
|
|
|
|
|
|
Suhaimi Ilias
|
|
|
|
Zamros
Dzulkafli
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dow Jones Index, positive trend intact
by Tee
Sze Chiah
|
|
|
|
|
|
|
|
|
|
|
FBMKLCI rose 6.67pts to 1,774.95 yesterday thanks to
late buying support on selected blue chips like PetGas, Telekom
Malaysia and Public Bank. Broader market was equally positive with
gainers outpacing losers by 542 to 420. A total of 4.09b shares worth
MYR2.95b changed hands. The benchmark could extend its gains today,
taking its cue from the firmer overnight US markets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
E.U: Approves tough Brexit talks stance, demanding U.K.
pays. The European Union finalized its tough Brexit negotiating position,
reiterating its hard line on the U.K.’s departure bill and refusing to
discuss a future trading arrangement until there is agreement on other
key topics. “We want to move to a situation where all the commitments
taken by the U.K. will be honored, as will ours with the U.K.,” Michel
Barnier, the EU’s chief Brexit negotiator, told reporters in Brussels
after a meeting of the remaining 27 national governments. “We need to
settle the accounts, and that’s a question of trust between us to build
our future relationship. (Source: Bloomberg)
U.K: Pound falls as Brexit tensions rise, conservative
lead narrows. The pound fell below USD 1.30 after the U.K. hardened its
Brexit rhetoric and polls predicted a narrower-than-expected win for
Prime Minister Theresa May in June elections. Sterling weakened against
all its major peers as the latest Opinium Research survey showed the
opposition Labour Party cutting May’s Conservative Party lead to 13
points from 15 points a week earlier. A YouGov survey in the Sunday Times
put Jeremy Corbyn’s party nine points behind, the first time it has had a
single-digit gap since September. The British currency also declined
after Brexit Secretary David Davis said the U.K. will quit talks with the
European Union if the bill for exiting the bloc exceeds EUR 100b (USD
112b). (Source: Bloomberg)
Crude oil: Holds gain as U.S. stockpiles seen falling
before OPEC meet. U.S. inventories probably slid by 2 million barrels
last week, according to a Bloomberg survey before an Energy Information
Administration report. Iraq backed a proposal to extend production curbs
into 2018, adding to growing support for longer reductions to clear a
global glut. Oil has climbed as Saudi Arabia and non-OPEC member Russia
rally support for a nine-month extension to the output-cut deal by the
Organization of Petroleum Exporting Countries and its allies. While
stubbornly high global inventories have taken longer-than-expected to
drain, signs that U.S. supplies are starting to ease is adding to
optimism. Brent for July settlement USD 53.87/bbl (Source: Bloomberg)
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|
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|
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|
|
Other News:
Econpile: Bags MYR48.5m contract for mixed development.
The group has bagged a MYR48.5m mixed-development contract from Pembinaan
Kery S/B, in a project commissioned by Pelaburan Hartanah. The first
phase of the mixed development comprises a 33-storey office space above
an eight-storey podium, with basement works slated to be completed in
approximately fifteen months. (Source: The Edge Financial Daily)
Fajarbaru Builder: Bags MYR29.5m renovation job from Pos
Aviation. Its wholly-owned Fajarbaru Builder S/B has bagged a MYR29.5m
contract from Pos Aviation S/B to renovate part of KLIA Air Cargo
Terminal 1. The contract — which ends Dec 29, 2017 — is expected to
contribute to Fajarbaru's earnings for the financial years ending June
30, 2017 and 2018 (FY17-FY18). (Source: The Edge Financial Daily)
TSR Capital: Inked MoU for a mixed development project.
Its subsidiary has inked a memorandum of understanding (MoU) with
US-based Globe Ventures Holdings to jointly develop a mixed development
project on a 21.12ha land at the Port Dickson waterfront in Negeri
Sembilan. The MoU may lead to a developer-investor or venture partner
cooperation between the two companies relating to the tourism-oriented
development. (Source: The Edge Financial Daily)
KUB Malaysia: 1Q profit up 44% on stronger energy, agro
contributions. The group ended its 1QFY17 with higher net profit of
MYR8.02m, up 44% from MYR5.57m a year ago, on stronger contributions from
its energy and agro divisions. Revenue rose 21% to MYR148.59m, against
MYR122.73m a year ago.In another development, KUB has signed a MoU with
Mabanaft Pte Ltd to jointly develop, own and operate a refrigerated
liquefied petroleum gas terminal at Westports in Port Klang, Selangor.
(Source: The Edge Financial Daily)
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