Yinson : Yinson sails on Banking sector : Indonesia’s Bank Mandiri to start operations in Malaysia by year-end DNeX : DNeX bags deal worth RM50m-RM75m Media Prima : Management shake-up at Media Prima

STOCK FOCUS OF THE DAY

Bermaz Auto : Getting back into the ring               BUY

We maintain BUY on Bermaz Auto (BAuto) with a fair value of RM2.30 based on an unchanged FY18PE of 13x.  Key points from our meeting with management yesterday:

(1)The new CX-5 will be launched end September, and the group aims to restore its sales for this model to around 500 units/month from an average of 380 units/month in FY17; (2) The immediate priority after restoring sales for its key models will be to secure a third CKD model in FY19; (3) The timeline for completion of BAP's IPO has been extended. This is to allow more time to address the concern on business sustainability as well as ascertain the impact of an impending change on the excise taxes for cars in the Philippines.

We are positive on the management's identification of key weaknesses in sales and their proactive steps in addressing them. BAuto guided that a genuine recovery in sales could come in the fourth quarter of this year when initiatives to restore the sales of the three key models (which last accounted for nearly 80% of Malaysia TIV) are fully implemented. The seasonal factor could also provide a small boost. We reiterate a BUY on the following factors: (1) better sales in FY18, counting on the new models from April; (2) margin recovery following the price revision earlier this year and the introduction of new models at a premium; (3) a rise in associate earnings, following the ramp-up in production and the addition of CX-5 exports to Southeast Asia (ex-Vietnam) later this year.

Others :

Only World  Group : Posturing for growth             HOLD

UMW Holdings : Switch to auto-pilot                       HOLD

STOCKS ON RADAR

Oceancash Pacific, Pintaras Jaya,Sam Engineering & Equipment,Lien Hoe Corporation

ECONOMIC HIGHLIGHTS

Euro : ECB triggers possibilities of ending ultra-loose monetary policy

NEWS HIGHLIGHTS

Yinson : Yinson sails on

Banking sector : Indonesia’s Bank Mandiri to start operations in Malaysia by year-end

DNeX : DNeX bags deal worth RM50m-RM75m

Media Prima : Management shake-up at Media Prima

DISCLAIMER:

The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.