Enra: Subsidiary bags MYR206m Petronas job off Myanmar. Its subsidiary has bagged a USD48m (MYR206m) contract to provide a mooring system and storage tanker services to Petroliam Nasional (Petronas) in the Andaman Sea, off the coast of Myanmar. It said the contract, which was secured during an open tender, is for four years and the

COMPANY RESEARCH Eco World International | To return to the black in FY18 Wei Sum Wong Barakah Offshore Petroleum | A new shareholder emerges Thong Jung Liaw

SECTOR RESEARCH Regional Plantations | Still tight June stockpile Chee Ting Ong

MACRO RESEARCH Malaysia | FBMKLCI Index Seeking Reversal Point Nik Ihsan Raja Abdullah

alt=break v:shapes="_x0000_i1027">

NEWS Outside Malaysia Other News

COMPANY RESEARCH

Malaysia Company Update Eco World International (ECWI MK) by Wei Sum Wong Share Price: MYR1.12 Target Price: MYR1.12 Recommendation: Hold To return to the black in FY18 EWI’s earnings should turnaround from 2HFY18 with the completion and hand over of LCI’s Blocks A & M. Elsewhere, its latest launch in Melbourne, namely Yarra One, has received decent bookings of c.34% since end-May 2017. We maintain our earnings forecasts and MYR1.12 TP based on an unchanged 0.75x P/RNAV peg. 2HFY17 losses should be lower on lower interest expenses and the absence of one-off listing expense. FYE Oct (MYR m) FY15A FY16A FY17E FY18E Revenue 0.0 0.7 0.5 0.6 EBITDA 0.0 (37.6) (63.4) (60.5) Core net profit 0.0 (220.1) (103.5) 225.9 Core FDEPS (sen) 0.0 (89.3) (4.3) 9.4 Core FDEPS growth(%) na nm nm nm Net DPS (sen) 0.0 0.0 0.0 0.0 Core FD P/E (x) nm nm nm 11.9 P/BV (x) nm 2.6 0.8 1.0 Net dividend yield (%) 0.0 0.0 0.0 0.0 ROAE (%) na na na na ROAA (%) na (35.4) (4.4) 6.3 EV/EBITDA (x) na na nm nm Net debt/equity (%) nm 803.5 net cash net cash Wei Sum Wong    (603) 2297 8679    weisum@maybank-ib.com Syairah Malek    (603) 2297 8641    syairah.am@maybank-ib.com

Malaysia Company Update Barakah Offshore Petroleum (BARAKAH MK) by Thong Jung Liaw Share Price: MYR0.60 Target Price: MYR0.13 Recommendation: Sell A new shareholder emerges Samling Energy has emerged as a new substantial shareholder with a 10% stake, acquiring the shares from founder CEO, Nik Hamdan, who has reduced his stake to 38%. That aside, Barakah needs to address its financials, especially its KL 101 pipelay barge (likely to be immobilised for FY17), a heavy burden to its cashflows. For that, we do not rule out an asset impairment exercise or an asset equity selldown to ease its financial burden. Maintain SELL with an unchanged MYR0.13 TP. FYE Dec (MYR m) FY15A FY16A FY17E FY18E Revenue 592.6 622.6 340.0 399.0 EBITDA 38.6 58.9 31.4 74.4 Core net profit 12.8 10.0 (30.7) 3.3 Core EPS (sen) 1.5 1.2 (3.6) 0.4 Core EPS growth (%) (82.8) (21.8) nm nm Net DPS (sen) 0.0 0.0 0.0 0.0 Core P/E (x) 40.8 52.2 nm 158.7 P/BV (x) 1.1 1.1 1.2 1.2 Net dividend yield (%) 0.0 0.0 0.0 0.0 ROAE (%) 5.0 3.5 (7.5) 0.8 ROAA (%) 1.7 1.3 (4.0) 0.5 EV/EBITDA (x) 21.8 12.4 18.5 7.1 Net debt/equity (%) 18.6 35.9 31.6 18.1 Thong Jung Liaw    (603) 2297 8688    tjliaw@maybank-ib.com

SECTOR RESEARCH RN: Regional Plantations Still tight June stockpile by Chee Ting Ong Sector Note Thanks to lower productivity ahead of Eid al-Fitr, MPOB’s June stockpile remained relatively tight, and is seen to be supportive of CPO price. But the market is still anticipating a strong seasonal pick up in 2H17 output while demand outlook remains a concern amidst ample supply of oilseeds. Stay NEUTRAL on the sector as we expect CPO price to seasonally weaken further in 2H17 when output peaks. Our regional BUYS are BPLANT, SOP, BAL, AALI, LSIP and TBLA. Chee Ting Ong    (603) 2297 8678    ct.ong@maybank-ib.com

MACRO RESEARCH MY: TRADERS’ ALMANAC FBMKLCI Index Seeking Reversal Point by Nik Ihsan Raja Abdullah Technical Research FBMKLCI ended lower yesterday, falling 2.80pts to 1,757.13 at day’s end. Profit taking activities on key blue chips such as PetChem and Genting as well as weaker oil price weighed on the broader market. Sentiment was bearish with losers outpacing gainers by 556 to 351. Trading volume was at 1.67b shares worth MYR1.51b. Nik Ihsan Raja Abdullah    (603) 2297 8694    nikmohdihsan.ra@maybank-ib.com Tee Sze Chiah    (603) 2082 6858    szechiah.t@maybank-ib.com

NEWS Outside Malaysia: E.U: Warns of Brexit trade frictions in blow to softer U.K. stance. European Union Brexit negotiator Michel Barnier signaled that even a partial withdrawal from the bloc will have consequences on the U.K.’s ability to interact with the EU and that a “frictionless” trade relationship isn’t feasible. A month into formal talks over the split, Barnier used an address to an EU committee in Brussels to tell Britain that any type of breakup will carry costs, delivering a blow to members of Theresa May’s government who are distancing themselves from her initial hardline stance and seeking to retain close links. “A trading relationship with a country that does not belong to the European Union obviously involves friction,” Barnier said. “So even if we secure the agreement I am working towards, the U.K.’s decision to leave the union will have significant consequences.” (Source: Bloomberg) U.K. Consumer spending growth slowest in 15 months: Barclaycard. U.K. consumer spending in June grew 2.5% YoY as Britons prioritized spending on essentials, partially driven by higher prices, Barclaycard data shows. Growth was 3.5% YoY in 2Q 2017. Spending rose 13.6% at restaurants and 11.4% at bars due to fine weather. In a survey of 2,000 Britons between June 23-26, 33% say they are confident in the U.K. economy, the least in seven months. 46% say they are “feeling the squeeze” from inflation. (Source: Bloomberg) Japan: Posted another sizable current-account surplus in May, despite a trade deficit resulting from a string of national holidays early in the month. The current-account surplus was JPY1.65t (USD14.5b).The primary income surplus was JPY1.92t. The deficit in goods trade was JPY115.1b. A month of weaker trade was not enough to dent Japan’s consistent current-account surplus, which is bolstered by returns from the nation’s overseas investments. A newly announced trade agreement between Japan and the European Union could further boost the nation’s trade figures when tariff reduction schedules begin to take effect. (Source: Bloomberg) Crude Oil: Holds gains as U.S. crude stockpiles seen falling. Inventories probably fell by 2.85 million barrels last week, a Bloomberg survey shows before an Energy Information Administration report Wednesday. OPEC-led output cuts to drain a global oversupply are working, Russian Energy Minister Alexander Novak reiterated on state-run Rossiya 24 television. Brent for September settlement was USD 46.88/bbl. (Source: Bloomberg) Other News: Enra: Subsidiary bags MYR206m Petronas job off Myanmar. Its subsidiary has bagged a USD48m (MYR206m) contract to provide a mooring system and storage tanker services to Petroliam Nasional (Petronas) in the Andaman Sea, off the coast of Myanmar. It said the contract, which was secured during an open tender, is for four years and the leasing period is expected to start once the facilities have been commissioned and delivered to PCML. (Source: The Star) Advancecon: Unit awarded MYR30.1m contract. The group which made its debut on the Main Market yesterday said its unit Advancecon Infra S/B has been awarded a contract worth MYR30.1m for the development and upgrading works of the proposed Pan Borneo Highway in Sarawak. The contract is expected to commence from Aug 5, 2017 and completed by Sep 23, 2019.(Source: The Sun Daily) Gadang: Sells plantation unit for RM15m. The group is selling its indirect wholly-owned plantation unit Desiran Impian S/B to Kumpulan Sawit Tan Holdings S/B for MYR15m. Proceeds from the sale will be used for general working capital requirements, Gadang said, adding that the deal is expected to be completed by May 2018.(Source: The Edge Financial Daily)