FW: AmBank Research - Prestariang : Earnings comeback signals inflection point BUY, 25 Aug 2017- Part 1

 

STOCK FOCUS OF THE DAY         

Prestariang : Earnings comeback signals inflection point                                                 BUY

 

We are upgrading Prestariang from a HOLD to BUY with unchanged forecasts and SOP-derived fair value of RM2.08/share (see Exhibit 2). Our upgrade is triggered by the recent sell-down in the company's shares beyond our fair value. At the current price, we are increasingly seeing value in the company. Prestariang currently trades at a FY18F PE of 12x, which represents a steep discount to its peer average of 18x.

 

Prestariang's 2QFY17 core net profit came in within our expectations at RM5.8mil, surging 76% QoQ and 72% YoY. This brings 1HFY17 net profit to RM9.0mil (+50% YoY), accounting for 45% of our full-year forecast. However, the 1H profit missed consensus at 32% of FY17F estimates. The group has recently tied up with Alibaba Cloud and Conversant Solutions to build an integrated education platform called EduCloud. The pilot version is scheduled to be launched by end-2017.

 

 

Others :

Eonmetall Group : Earnings momentum sustained in 2QFY17                       BUY

HLFG: Stronger earnings from insurance division ahead                                 BUY 

Kossan Rubber : Earnings flat in 2QFY17                                                                 BUY

OldTown : Seesaw quarter with F&B offsetting FMCG                                    BUY

TSH Resources :  Looking forward to a better 2HFY17                                       BUY

Bintulu Port : Samalaju Industrial Port ready                                                        HOLD

Bumi Armada : Expect lower revenues from Kraken                                        HOLD

HLB : Asset quality still stable despite upticks in impairments                       HOLD

MBM Resources : Forging a stronger foundation                                               HOLD

Sunway Construction : 1HFY17 net profit grows 18% YoY                                HOLD

WCT Hldgs :  1HFY17 core net profit jumps 41% YoY                                          HOLD

Genting Bhd : Boosted by Singapore, let down by Malaysia                          SELL

Gent Malaysia : Weak earnings in spite of the new attractions                    SELL

AMMB Holdings : Credit cost normalising                                                              NON-RATED

 

STOCKS ON RADAR

JF Technology, Lii Hen Industries, Rhone Ma Holdings, Hua Yang

 

 

ECONOMIC HIGHLIGHT

UK : Slowest growth amongst G7

 

 

NEWS HIGHLIGHTS

AAX : AirAsia X 2Q net pro t soars to RM47.44m on forex gains

SHL : SHL eyes Myanmar’s affordable housing market

Oil & Gas  : Sector Petronas continues to seek overseas expansion opportunities

Maybank: Maybank expects new card to generate RM160mil spending