Kumpulan Jetson: Bags MYR919m building job, share price jumps. Kumpulan Jetson has been awarded a MYR919.3m subcontract job to undertake main building works for a mixed commercial project in Jalan Conlay. The contract sum comprises MYR

COMPANY RESEARCH AEON Co. (M) | Disposes AEON Mahkota Cheras Kevin Wong

SECTOR RESEARCH Malaysia Oil & Gas | Conference takeaways Thong Jung Liaw

MACRO RESEARCH Malaysia | BM Finance Index – Taking a breather Nik Ihsan Raja Abdullah

NEWS Outside Malaysia Other News

COMPANY RESEARCH

Malaysia Company Update AEON Co. (M) (AEON MK) by Kevin Wong Share Price: MYR2.24 Target Price: MYR2.20 Recommendation: Hold Disposes AEON Mahkota Cheras We are mildly positive on the proposed disposal of the AEON Mahkota Cheras mall as we understand that the mall has been underperforming while earnings contribution to the group was minimal. Due to marginal earnings impact, we maintain our earnings forecasts and MYR2.20 TP (pegged to 28x FY18 PER). FYE Dec (MYR m) FY15A FY16A FY17E FY18E Revenue 3,834.6 4,038.7 4,159.9 4,352.6 EBITDA 443.9 448.8 500.9 530.9 Core net profit 133.4 79.7 93.2 110.2 Core EPS (sen) 9.5 5.7 6.6 7.9 Core EPS growth (%) (32.5) (40.2) 16.9 18.3 Net DPS (sen) 4.0 3.0 3.3 3.9 Core P/E (x) 23.6 39.4 33.7 28.5 P/BV (x) 1.7 1.7 1.6 1.6 Net dividend yield (%) 1.8 1.3 1.5 1.8 ROAE (%) 7.4 4.3 4.9 5.7 ROAA (%) 3.6 1.9 2.1 2.4 EV/EBITDA (x) 9.9 10.0 8.1 7.6 Net debt/equity (%) 30.1 46.3 46.1 44.5 Kevin Wong    (603) 2082 6824    kevin.wong@maybank-ib.com

SECTOR RESEARCH MY: Malaysia Oil & Gas Conference takeaways by Thong Jung Liaw Sector Note We recently hosted a one day Oil & Gas conference in Kuala Lumpur, featuring two keynote speakers: (i) Dr Jeffrey Brown, President of FGE and (ii) Ms Vandana Hari, Founder & CEO of Vanda Insights. The topics of discussion centred on OPEC’s cohesion, shale’s development and oil price outlook. The key takeaways are highlighted below. We maintain our crude oil ASP estimate of USD53/bbl (Brent) for 2017. Our key BUYs are Sapura Energy, Yinson, Dialog and Wah Seong. Thong Jung Liaw    (603) 2297 8688    tjliaw@maybank-ib.com

MACRO RESEARCH MY: TRADERS’ ALMANAC BM Finance Index – Taking a breather by Nik Ihsan Raja Abdullah Technical Research FBMKLCI eked out a marginal 0.13pt gains yesterday to close at 1,771.36. Market breadth has improved with gainers outpacing losers by 502 to 314. Turnover was 1.39b shares valued at MYR1.55b. The benchmark could gap down at the opening bell on negative spillover from Wall Street overnight. However, bottom fishing activities should help to narrow losses as this holiday-shortened week comes to an end. Next week, market may stage a technical rebound, following a slight recovery in oil price. Nik Ihsan Raja Abdullah    (603) 2082 8694    nikmohdihsan.ra@maybank-ib.com Tee Sze Chiah    (603) 2082 6858    szechiah.t@maybank-ib.com

NEWS Outside Malaysia: E.U: Euro-area economic confidence jumped to the highest level in a decade as the European Central Bank edged toward unwinding unprecedented stimulus. An index of executive and consumer sentiment rose to 111.1 in June from 109.2 in May, the European Commission said. The reading is the strongest since August 2007. The report comes two days after ECB President Mario Draghi confounded investors by arguing that there’s room to adjust stimulus measures as the economy improves, even though he called for prudence and patience amid still-low inflation. (Source: Bloomberg) E.U: Euro-area economic confidence jumped to the highest level in a decade as the European Central Bank edged toward unwinding unprecedented stimulus. An index of executive and consumer sentiment rose to 111.1 in June from 109.2 in May, the European Commission said. The reading is the strongest since August 2007. The report comes two days after ECB President Mario Draghi confounded investors by arguing that there’s room to adjust stimulus measures as the economy improves, even though he called for prudence and patience amid still-low inflation. (Source: Bloomberg) Japan: Inflation edges up but remains far from BOJ’s target. Japan’s core consumer prices crept higher for a fifth straight month, but their slow rise means inflation remains far from the Bank of Japan’s 2% target. Consumer prices excluding fresh food advanced 0.4% YoY in May, the fastest gain since December 2014, when the impact of a 2014 sales-tax hike is excluded. Excluding fresh food and energy, prices were unchanged. The jobless rate in May rose unexpectedly to 3.1%. Industrial production decreased 3.3% MoM in May from the previous month. (Source: Bloomberg) Vietnam: Economy recovered this quarter with a surge in exports allowing it to rejoin a small group of nations posting growth rates of more than 6%. GDP rose 6.17% YoY in the second quarter, compared with a revised 5.15% YoY in the previous three months, the General Statistics Office said. The economy expanded 5.73% YoY in the six months through June. (Source: Bloomberg) Other News: Kumpulan Jetson: Bags MYR919m building job, share price jumps. Kumpulan Jetson has been awarded a MYR919.3m subcontract job to undertake main building works for a mixed commercial project in Jalan Conlay. The contract sum comprises MYR336.7m for building works and MYR582.7m for prime cost and provisional sum. The job involves demolition and site works, architectural works to basement, podium structural works, elevated car park, retails, Tower B, sky bridges and facilities floor, external works, and hard landscaping works. (Source: The Edge Financial Daily) Tasco: Shareholders approve venture into cold chain business. Logistics player, Tasco expects its maiden foray into the cold chain business to contribute about 15% to 20% to revenue for the financial year ending March 31, 2018 (FY18), after both proposals of its EGM received approvals from shareholders. The logistics firm was given the green light by shareholders to acquire Gold Cold Transport Sdn Bhd (GCT) and MILS Cold Chain Logistics Sdn Bhd. The company projects that the company could generate MYR110m in revenue contribution from the cold chain segment in the current financial year. The acquisition of GCT will be completed by the July, while the takeover of MILS Cold Chain Logistics will be done by the end of November. (Source: The Star) Reach Energy: Needs to raise funds due to capital shortfall. Reach Energy needs to raise fresh funds due to a capital shortfall after the company returned MYR138.51m cash to dissenting shareholders who had voted against the qualifying acquisition (QA) that had cost it USD175.9m (MYR756.37m). The company is currently exploring options to raise fresh capital but has yet to decide whether to go ahead with the share placement that was supposed to raise as much as MYR180m. Of the total purchase consideration of USD175.9m for the QA, the company has paid USD131.9m with the cash it raised through its initial public offering. There is an outstanding balance of USD44m that the company needs to settle. (Source: The Edge Financial Daily)