|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECTOR RESEARCH
|
|
|
|
|
|
|
|
Beneficial rainfall YTD
by Chee
Ting Ong
|
|
|
|
|
|
|
|
|
|
|
The usual dry season is approaching but this is not El
Nino. In fact, the El Nino threat is diminishing. Meanwhile,
beneficial rainfall was recorded over the past 12 months and this
will aid yield recovery in 2H17. Stronger output and inventory
build-up in 2H17 will result in weaker CPO price. Our 12M NEUTRAL
call on the sector is reiterated. Our BUYs in the region are (MY)
BPLANT, SOP, (SG) BAL, (INDO) AALI, LSIP and TBLA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017, in the bag?
by Liew
Wei Han
|
|
|
|
|
|
|
|
|
|
|
Despite still weak consumer sentiment, consumers would
appear to have been adjusting to higher living costs and are still
spending. Our Economics Research team believes that the government’s
measures to boost disposable income is a contributing factor. We project
revenue/earnings growth of about 5%/5% for our basket of consumer
stocks in 2017 on aggregate. We believe that valuations are already
fair for most stocks (average 2017/18 sector PERs of 26.3/23.6x).
Selective BUYs are Atlan and Bison.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACRO RESEARCH
|
|
|
|
|
|
|
|
Manufacturing-driven growth
by
Suhaimi Ilias
|
|
|
|
|
|
|
|
|
|
|
Industrial production (IP) growth moderated for a
second month in Apr 2017 to +4.2% YoY (Mar 2017: +4.6% YoY) despite
the pick up in manufacturing output, which was offset by declines in
mining and electricity production.
|
|
|
|
|
|
Suhaimi Ilias
|
|
|
|
Zamros
Dzulkafli
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A mixed bag of trade
by
Suhaimi Ilias
|
|
|
|
|
|
|
|
|
|
|
Export growth momentum was sustained but slowed in Apr
2017 to +12.1% YoY (revised Mar 2017: +18.0% YoY) on increases in
electronics, mineral and agriculture exports amid declines in
non-electronics manufacturing exports. Imports was “flattish” at
-0.1% YoY (revised Mar 2017: +18.1% YoY) on lower imports of
consumption and capital goods.
|
|
|
|
|
|
Suhaimi Ilias
|
|
|
|
Zamros
Dzulkafli
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tech Stocks – Bubble Burst or Correction?
by Nik
Ihsan Raja Abdullah
|
|
|
|
|
|
|
|
|
|
|
Is the recent pullback the start of a bear market or a
temporary blip? We believe it is just a minor hiccup. Looking at
monthly chart, our Fibonacci mapping suggests that NASDAQ is now
treading in Wave 5 (final leg). However, this up leg does not look complete,
as the index should reach 7,022 at minimum, and potentially hitting a
high of 7,683.
|
|
|
|
|
|
Nik Ihsan Raja
Abdullah
|
|
|
|
Tee Sze Chiah
|
|
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
U.K: Consumer spending drops for first time in four years.
Inflation’s hold on the U.K. consumer is tightening and the economy is
suffering as a result. Consumer spending fell an annual 0.8% in May, the
first decline since September 2013, according to IHS Markit and Visa.
Separately, accountancy firm BDO said its U.K. business activity index
weakened as services, the largest part of the economy, ground to a halt.
Citing the impact of the weaker pound, it said services companies are
seeing no growth in demand. (Source: Bloomberg)
Italy: IMF raises outlook, sees monetary normalization
risk. The International Monetary Fund revised upward its forecast for
Italy’s 2017 economic growth, while warning that significant risks over
the next few years include the effect of the European Central Bank’s
monetary-policy normalization on the nation’s credit risk. Gross domestic
product is projected to expand by about 1.3 % this year, the IMF said in
a statement after its Article IV consultations, up from 0.8% seen in April.
The Washington-based fund said it expects growth in the euro region’s
third-biggest economy “to moderate to around 1% in 2018–20.” (Source:
Bloomberg)
Crude Oil: Holds gains as U.S. crude stockpiles seen
resuming decline. Inventories are forecast to have slid by 2.25 million
barrels last week, according to a Bloomberg survey before an Energy
Information Administration report. Crude stockpiles surprisingly expanded
for the first time in nine weeks through June 2. Output at major U.S.
shale plays will reach a record in July, according to the EIA. Brent for
August settlement rose to USD 48.29/bbl. (Source: Bloomberg)
|
|
|
|
|
|
|
Other News:
Luxchem: To boost presence in Indonesia, Vietnam. The
company is focused on enhancing its presence in Indonesia and Vietnam and
raising its operational efficiency, with no plans to further expansion in
the near future. Founder and CEO Tang Ying See said the group would be
spending more time and efforts on further developing the two markets
instead of seeking to penetrate other markets. “These two markets are big
enough for us [to focus on] for the next five years,” Tang told The Edge
Financial Daily. Tan attributed the increase in exports to more sales in
Vietnam and Indonesia. Tang also added that Luxchem will be replicating
its Malaysian business model in Indonesia. (Source: The Edge Financial
Daily)
Vivocom International: Terminate contract by Coneff Corp.
The company has terminated an MYR240.42m contract awarded to it by Coneff
Corp Sdn Bhd due to non-fulfilment of certain contractual obligations.
The contract, which follows a letter of award from Coneff in January
2016, was for Vivocom’s subsidiary to undertake construction works for
Phase 3B of the Desa Tasik project in Sungai Besi. (Source: The Edge
Markets)
IHH Healthcare: Broke ground for Shanghai Hospital. The
company and its strategic partner in China, Taikang Insurance Group,
broke ground last Friday, June 9 for the 450-bed Gleneagles Shanghai
Hospital, to be built on a 35,754 sq m, 50-year leasehold site. The
hospital — IHH’s second in China and Hong Kong this year — is set to open
in 2020 and is expected to require CNY1.36b of capital expenditure.
(Source: The Edge Markets)
|
|
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.