FW: Affin Hwang Capital Daily Insight (LV) - 30 August 2017 - AIRA / AFG / EAST / KAREX / LMC / MCIL / MRC / RHBBANK / PINT / SUCB / SWB / T / YTL / YTLP / WTKH / YSP / MSM

 

Investment Research                   Affin Hwang Capital Daily Insight | Wednesday, 30 August 2017        KLCI Index (12-month)  Research Team     research@affinhwang.com    Chue Kwok Yan  Head of Research | RESEARCH     +603 2146 7618     kwokyan.chue@affinhwang.com    Alan Tan  Chief Economist | RESEARCH     +603 2146 7540     alan.tan@affinhwang.com Top Calls   Results Note � AirAsia (HOLD, downgrade) - 2Q17 results below expectations AirAsia�s 2Q17 results registered higher revenue (+19.2% yoy) but lower core net profit (-60.8% yoy). Despite higher passenger movement and higher capacity, bottom-line fell due to higher operating costs, particularly staff costs, aircraft fuel expenses and user charges. 1H17�s core net profit fell by 28.2% yoy to RM440.5m, constituting 34% of our and consensus estimates. Overall results were below expectations, prompting us to lower our 2017-19E EPS estimates by 24%-29%. Downgrade to HOLD with a lower TP of RM3.41 based on an unchanged 10x FY18 EPS.   Other Calls   Results Note � AFG (BUY, maintain) - Transformation initiatives underway Result Note � Eastern & Oriental (BUY, maintain) - Fair value gains Results Note � Karex (SELL, downgrade) - Disappointing end to the year Results Note � Lafarge Malaysia (HOLD, maintain) - Second consecutive quarter of loss Results Note � MCIL (SELL, maintain) - A weak start to the year Results Note � MRCB (HOLD, maintain) - Slow progress billings Results Note � RHB Bank (HOLD, maintain) - Lower impairments drive bottomline Results Note � Pintaras Jaya (BUY, maintain) - Core net profit doubled Results Note � SUPERMAX (HOLD, maintain) - Hit by higher tax Results Note � Sunway (BUY, maintain) - Within expectations Results Note � TM (HOLD, maintain) - In line with expectations Results Note � YTL Corporation (HOLD, maintain) - Cement is key to recovery Results Note � YTL Power International (HOLD, maintain) - Lower DPS surprises us on the downside Results Note � WTK (SELL, downgrade) - Results below expectations Results Note � YSP SoutheasT Asia (BUY, maintain) - 1H17 below due to lower forex gains Results Note � MSM (SELL, maintain) - Another quarter of losses Morning News & Market Summary For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.