|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR6.74
|
|
Target
Price:
|
MYR7.00
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
50% JV with
China Galaxy
|
|
While positive to long-term cost savings, we are
short-term neutral on CIMB Group’s 50:50 JV with China Galaxy
Securities. With CIMB’s share price having risen 23% since we upgraded
it to BUY, the upside to our TP has narrowed. As such, we are
downgrading the stock to HOLD with an unchanged TP of MYR7.00, pegged
to a CY18 PBV of 1.2x (10.2% ROE). Positively, the stock continues to
offer a decent prospective FY17 dividend yield of 3.7%.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Operating income
|
15,395.8
|
16,065.3
|
16,982.4
|
17,970.3
|
|
Pre-provision profit
|
6,146.8
|
7,413.6
|
8,116.0
|
8,834.7
|
|
Core net profit
|
3,411.2
|
3,414.4
|
4,393.8
|
4,995.3
|
|
Core EPS (MYR)
|
0.40
|
0.39
|
0.50
|
0.56
|
|
Core EPS growth (%)
|
5.6
|
(2.4)
|
26.1
|
13.7
|
|
Net DPS (MYR)
|
0.14
|
0.20
|
0.25
|
0.28
|
|
Core P/E (x)
|
16.7
|
17.2
|
13.6
|
12.0
|
|
P/BV (x)
|
1.4
|
1.3
|
1.3
|
1.2
|
|
Net dividend yield (%)
|
2.1
|
3.0
|
3.7
|
4.2
|
|
Book value (MYR)
|
4.87
|
5.24
|
5.38
|
5.66
|
|
ROAE (%)
|
8.7
|
7.9
|
9.5
|
10.2
|
|
ROAA (%)
|
0.8
|
0.7
|
0.9
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q17 results round-up
by Thong
Jung Liaw
|
|
|
|
|
|
|
|
|
|
|
1Q17 results were largely in line and we expect the
momentum to pick up in 2Q17. Overall, volatility has receded,
confidence has improved and costs have reset. The sector is on a
cyclical recovery, as the oil market re-balances and capex grows. We
are keeping our USD53/bbl average (YTD: USD54) oil price estimate for
2017. We remain POSITIVE on the sector. Our key BUYs are Sapura
Energy, Yinson, Dialog and Wah Seong.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inflation eased
by
Suhaimi Ilias
|
|
|
|
|
|
|
|
|
|
|
Both headline and core inflation rates in May 2017
moderated to +3.1% YoY (Apr 2017: +3.4% YoY) and +2.9% YoY (Apr 2017:
+3.0% YoY) respectively. Jan-May 2017 headline inflation was +3.2%
YoY. No change in our full-year 2017 and 2018 headline inflation rate
forecasts of +3.3% and +3.5% respectively.
|
|
|
|
|
|
Suhaimi Ilias
|
|
|
|
Zamros
Dzulkafli
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Axiata Technical View Improving
by Nik
Ihsan Raja Abdullah
|
|
|
|
|
|
|
|
|
|
|
FBMKLCI rose 3.06pts yesterday to close at a new year
high of 1,791.01, led by gains in blue chips like Tenaga Nasional.
Market sentiment, however, was negative with losers outpacing gainers
by 547 to 342. A total of 2.30b shares worth MYR2.62b changed hands.
Technically, FBMKLCI is still going strong but intermittent profit
taking could take place. With overnight US markets ended lower, we
expect selling pressure to accelerate in the early going.
|
|
|
|
|
|
Nik Ihsan Raja
Abdullah
|
|
|
|
Tee Sze Chiah
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outside Malaysia:
Germany: Merkel defends trade surplus, points to U.S.
investment. German Chancellor Angela Merkel defended the country's trade
surplus with the U.S. and emphasized the size of German direct investment
in the U.S. Merkel also expressed support for restarting European Union
talks with the U.S. on the Transatlantic Trade and Investment
Partnership, or TTIP. “When it comes to Germany, we speak a lot about
trade deficits, or surpluses from Germany's perspective. I think you also
have to look at Germany's direct investment as an additional component,”
Merkel said. (Source: Bloomberg)
Japan: Base wages unchanged in April while bonuses rise.
The latest wages figures in Japan tell a familiar story: compensation is
rising, but not enough to send consumers on a shopping spree or to push
inflation toward the 2% level targeted by the government and the central
bank. Scheduled monthly base wages per full-time worker were unchanged in
April from a year ago, labor ministry data showed. Total cash earnings,
including overtime and bonuses, advanced 0.5%. Hourly pay per part-time
worker grew 2.7%. Bonuses and allowances gained 5.6%. (Source: Bloomberg)
Australia: Holds rates as RBA plays long game on economy’s
growth. The Reserve Bank of Australia shrugged off a likely slowdown in
the economy when it left its benchmark interest rate on hold for the 10th
straight month. Governor Philip Lowe said growth was still expected to
accelerate above 3% in the next couple of years despite probably slowing
in the March quarter, citing a broad-based pick-up in the global economy
alongside a local improvement in jobs and non-mining investment. But he
counter-balanced that with a warning: underemployment was keeping a lid
on wage gains which in turn is restraining household spending. (Source:
Bloomberg)
S. Africa: Unexpectedly tips into second recession in 8
years. South Africa’s economy fell into a recession for the first time
since 2009 after it contracted for a second straight quarter in the first
three months of the year as all but two industries shrank. Gross domestic
product receded an annualized 0.7% in the first quarter from a
contraction of 0.3% in the previous three months, Statistics South Africa
said in a report. (Source: Bloomberg)
|
|
|
|
|
|
|
Other News:
Infrastructure: Briefing on Kuala Lumpur-Singapore HSR
project in July. MyHSR Corp Sdn Bhd and the Land Transport Autority of
Singapore will jointly conduct an industry briefing next month in
preparation of the assets company (AssetsCo) tender for the Kuala
Lumpur-Singapore HSR project. The AssetsCo will be responsible for
designing, building, financing and maintaining all rolling stock, as well
as designing, building, financing, operating and maintaining rail assets.
The briefing will be open to all qualified entities and will serve as a
platform for MyHSR and LTA to share key features of the HSR project, as
well as indicative AssetsCo tender parameters and technical
specifications. (Source: The Edge Financial Daily)
MRCB: Tendering for MYR6b worth of construction jobs.
Malaysian Resources Corp Bhd (MRCB) has submitted construction bids worth
MYR6b as part of its exercise to replenish its order book for financial
year ending Dec 31, 2017 (FY17). Currently, MRCB's order book stood at
MYR7.04b, of which MYR5.36b has yet to be billed. The construction
business currently generates 36% and 2% MRCB’s total revenue and
operating profit respectively. (Source: The Edge Financial Daily)
Bintai Kinden: Wins job from Myanmar firm. The company has
bagged a USD17.5m (MYR74.m) deal in Myanmar to undertake air-conditioning
and fire protection installation work. The contract for the two
developments in Bahan township in Yangon, Somerset Serviced Apartment and
68 Residence and is expected to be completed by July 2018. (Source: The
Edge Markets)
|
|
|
|
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.