FW: Affin Hwang Capital Daily Insight (LV) - 8 September 2017 - TELCO / PHARMA / OPR / ASEAN WEEKLY

 

Investment Research                   Affin Hwang Capital Daily Insight | Friday, 8 September 2017        KLCI Index (12-month)  Research Team     research@affinhwang.com    Alan Tan  Chief Economist | RESEARCH     +603 2146 7540     alan.tan@affinhwang.com Top Calls   Sector Update � Telco (NEUTRAL, maintain) - 2Q17 results wrap 2Q17 results were broadly in line with expectations. Although the sequential momentum was positive, aided by improved earnings at Axiata (+48% qoq), 1H17 sector earnings were nevertheless still lower by 4% yoy due to higher competition and costs (depreciation and interest expense). We had earlier cut our earnings forecasts for Digi due to a less optimistic outlook, and for Maxis to take into account the termination of the 3G Ran share agreement with U Mobile. With limited catalysts for the sector and potentially another round of price competition sparked by the 4th player, we would prefer to stay clear of the cellular space. We remain Neutral on the sector with TM as our top pick.   Other Calls   Company Update � Pharmaniaga (NOT-RATED) - Transformation in the making Economic Update � Malaysia - OPR - BNM keeps its OPR unchanged at 3.0% Economic Update � ASEAN Weekly Wrap - ASEAN manufacturing PMI rose above 50 in August Morning News & Market Summary For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports. The downloaded documents are in PDF format and are best viewed in Adobe Reader.