Tuesday, August 29, 2017

FW: AmBank Research - Cahya Mata Sarawak : A soft patch in FY17, stronger FY18 ahead BUY, 29 Aug 2017 - Part 1

 

STOCK FOCUS OF THE DAY         

Cahya Mata Sarawak : A soft patch in FY17, stronger FY18 ahead                                                                BUY

 

We like CMS for: 1) the strong demand for cement and building materials underpinned by various mega infrastructure projects in Sarawak; 2) its steady growth of construction and road maintenance works including the Pan-Borneo Highway project awarded to CMS (JV with Bina Puri Holdings); and 3) sustained demand from its property development both in Kuching and Samalaju and potential land sale of its current undervalued land banks.

 

We cut our FY17-19F earnings forecast by 11%, 4% and 1% respectively, reduce our FV by 13% to RM4.45 (from RM5.15) (Exhibit 1) but maintain our BUY call, following an analyst briefing yesterday.

 

Others :

Mah Sing Group : Steady performance                                                                                                                  BUY

CIMB Group : Gradual improvement in CI ratio                                                                                                   HOLD

Cocoaland Hldgs : Higher costs trickling in                                                                                                              HOLD

IOI Corporation : Beneficiary of ban on trans-fat in US                                                                                    HOLD

Econpile Hldgs :  Still bullish on earnings growth prospects                                                                            HOLD

Only World Group : Greater earnings visibility tied with Genting                                                                HOLD

UMW Holdings : Margin crunch hits core segments                                                                                          HOLD

 

 

Stocks On Radar

Mieco Chipboard,Johan Holdings,Sarawak Oil Palms,Dialog Group

 

 

NEWS HIGHLIGHTS

AirAsia Bhd : Planning flights from Davao to China, South Korea

Tiong Nam Logistics: Investing RM100mil to expand fleet, strengthen network

Eco World Development  : Handing over Aurora and Basalta @ Eco Sky by this year-end

 

 

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