ML Global: Subsidiary accepts LoA for MYR68.14m project. Its indirect 70%-owned subsidiary, MGB Geotech S/B, has accepted a letter of award from Samling Ekovest JV S/B to undertake piling works worth MYR68.14m in Bau, Lundu and KSR Section

FEATURE CALLS Malaysia | Genting Bhd Like GENM? Love GENS? Then, BUY GENT (Part 2) Samuel Yin Shao Yang

COMPANY RESEARCH Alam Maritim | Defaulted on its Sukuk Thong Jung Liaw

MACRO RESEARCH Philippines | Record trade deficit in May 2017 Suhaimi Ilias Malaysia | Brent Crude Oil Outlook Remains Weak Nik Ihsan Raja Abdullah

NEWS Outside Malaysia Other News

COMPANY RESEARCH

Malaysia TP Revision Genting Bhd (GENT MK) by Samuel Yin Shao Yang Share Price: MYR9.08 Target Price: MYR11.90 Recommendation: Buy Like GENM? Love GENS? Then, BUY GENT (Part 2) Since mid-2016, GENT’s share price appreciated only 15% while that of GENS and GENM surged 45% and 30% respectively (Fig 1). In this report, we address five frequently asked questions (FAQs) to reaffirm our BUY call. We tweak our FY17/FY18/FY19 earnings estimates by +1%/+3%/+3% and SOP-based TP by +3% to MYR11.90 (Fig 2) to account for our higher GENM earnings estimates and TP (link). We continue to prefer GENT as a cheaper proxy to GENS and GENM. FYE Dec (MYR m) FY15A FY16A FY17E FY18E Revenue 18,100.4 18,365.8 19,751.2 22,380.5 EBITDA 5,393.8 6,028.2 7,537.2 8,883.9 Core net profit 1,297.6 1,525.3 2,316.5 2,910.8 Core FDEPS (sen) 34.8 40.8 55.2 68.6 Core FDEPS growth(%) (24.3) 17.1 35.6 24.1 Net DPS (sen) 3.5 12.5 8.1 10.1 Core FD P/E (x) 26.1 22.3 16.4 13.2 P/BV (x) 1.0 1.0 0.9 0.9 Net dividend yield (%) 0.4 1.4 0.9 1.1 ROAE (%) 4.7 6.4 6.8 7.6 ROAA (%) 1.6 1.7 2.5 3.0 EV/EBITDA (x) 8.3 7.6 7.5 6.2 Net debt/equity (%) net cash net cash net cash net cash Samuel Yin Shao Yang    (603) 2297 8916    samuel.y@maybank-ib.com

Malaysia TP Revision Alam Maritim (AMRB MK) by Thong Jung Liaw Share Price: MYR0.14 Target Price: MYR0.08 Recommendation: Sell Defaulted on its Sukuk Alam Maritim has missed the MYR30m Sukuk Ijarah MTN payment due on 6 Jul 2017. For this, MARC has downgraded its Sukuk ratings to D, from BB. We cut our TP to MYR0.08 (-38%), valuing Alam at 0.1x of BV, similar to peers (Perisai and Swiber), which went through a similar predicament. Maintain SELL. FYE Dec (MYR m) FY15A FY16A FY17E FY18E Revenue 350.2 229.5 246.0 282.1 EBITDA 79.9 (27.8) 44.2 54.9 Core net profit 68.1 (133.0) 0.5 9.7 Core EPS (sen) 7.4 (14.4) 0.1 1.1 Core EPS growth (%) 14.4 nm nm 1,904.8 Net DPS (sen) 0.0 0.0 0.0 0.0 Core P/E (x) 1.9 nm 266.2 13.3 P/BV (x) 0.1 0.2 0.2 0.2 Net dividend yield (%) 0.0 0.0 0.0 0.0 ROAE (%) 5.8 (22.3) 0.1 1.3 ROAA (%) 5.2 (12.4) 0.1 1.0 EV/EBITDA (x) 5.8 nm 4.7 3.2 Net debt/equity (%) 7.8 14.9 11.1 6.3 Thong Jung Liaw    (603) 2297 8688    tjliaw@maybank-ib.com

MACRO RESEARCH PH: External Trade, May 2017 Record trade deficit in May 2017 by Suhaimi Ilias Economics Research Exports growth eased in May 2017 to +13.7% YoY (revised Apr 2017: +19.1% YoY; previously: +12.1% YoY) while imports growth rebounded sharply by +16.6% YoY (Apr 2017: -0.1% YoY), resulting in record trade deficit of -USD2.75b (Apr 2017: -USD1.753b). However trade deficit in Jan-May 2017 of –USD11.0b rose by a moderate +3.9% compared with the +218.3% and +118.2% jumps in Jan-May 2016 and the whole of last year. Suhaimi Ilias    (603) 2297 8682    suhaimi_ilias@maybank-ib.com Zamros Dzulkafli    (603) 2082 6818    zamros.d@maybank-ib.com MY: TRADERS’ ALMANAC Brent Crude Oil Outlook Remains Weak by Nik Ihsan Raja Abdullah Technical Research FBMKLCI ended slightly lower yesterday, easing 2.1pts to close at 1,755.03, with banking stocks taking the brunt of selling. Sentiment was negative with losers outpacing gainers by 715 to 198. A total of 1.73b shares worth MYR2.07b changed hands. As oil price continued to strengthen, market may find some respite after losing for three consecutive days. However, choppy trading is expected ahead of Janet Yellen’s testimony to Congress. 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: U.S: Decline in job openings cushioned by stronger hiring rate. A decline in U.S. job openings in May from close to a record high is still consistent with resilient demand for workers, a Labor Department report showed. Number of positions waiting to be filled fell by 301k to 5.67m (est. 5.95m) from revised 5.97m in April, according to Job Openings and Labor Turnover Survey or JOLTS. Hiring rose to 5.47m from 5.04m; hiring rate increased to 3.7% from 3.5%. A total of 3.22m Americans quit their jobs, up from 3.04m; quits rate rose to 2.2% from 2.1%. Layoffs edged up to 1.66m from 1.61m. (Source: Bloomberg) U.K: Retail sales rebounded in the second quarter, climbing the most since 2013 as warm weather tempted shoppers, according to the British Retail Consortium. Retail sales rose 2.1% on a like-for-like basis, the British Retail Consortium said. Food sales jumped 3.6%, while non-food expenditure increased 0.9%. While consumers have so far been a driver of growth since Britain’s vote to leave the European Union last year, the BRC data bucks a recent weakening trend. Shop sales plunged in May, according to the Office for National Statistics, and a report by IHS Markit and Visa showed consumer spending posted its worst quarter since 2013 in the three months through June. (Source: Bloomberg) Italy: Production rises more than expected, boosting outlook. Italian industrial production rebounded in May, signaling that economic growth for the rest of the year may equal or exceed the pace posted in the first quarter. Production increased 0.7% from April, when it fell a revised 0.5%, statistics agency Istat said. On an annual, workday adjusted basis, industrial output was up 2.8% in May. (Source: Bloomberg) Other News: ML Global: Subsidiary accepts LoA for MYR68.14m project. Its indirect 70%-owned subsidiary, MGB Geotech S/B, has accepted a letter of award from Samling Ekovest JV S/B to undertake piling works worth MYR68.14m in Bau, Lundu and KSR Section in Sarawak. With the project in hand, the group’s current outstanding order book is about MYR2.05b.The construction period is for 20 months, with completion by Oct 31, 2018.(Source: The Star) Sealink: To see MYR52m proceeds from charter, sale of vessels. The group has bagged a charter contract for one of its safety standby vessels and is selling two ageing vessels for MYR52m in total. The disposal of the vessels is part of the group's strategy to continually modernise and upgrade its fleet of vessels. It plans to use the sale proceeds for working capital. (Source: The Edge Financial Daily) UPA: To get MYR32.6m from compulsory government land acquisition for MRT2. Paper and printing machine seller UPA Corp said the government, via the Federal Territory Lands and Mines Office, has notified the firm that it would be awarded MYR32.67m for the compulsory acquisition of three plots of land it owns. The compulsory acquisition will pave way for the government to construct the second mass rapid transit line, which will be traversing from Sungai Buloh to Putrajaya via Serdang.(Source: The Edge Financial Daily) T7 Global: Optimistic on FY17 with jobs secured last year. T7 Global, formerly known as Tanjung Offshore, is optimistic about continuing to post positive results for the remaining quarters of financial year ending Dec 31, 2017 (FY17). This will be supported by a number of projects secured previously, which will keep the group busy for several years. The group's current orderbook now stands at MYR500m, while its tenderbook is valued at over MYR1b. The group is currently bidding for several more projects worth billions. (Source: The Edge Financial Daily)