STOCK FOCUS OF THE DAY
UMW Holdings : Onward and upward HOLD
We maintain HOLD on UMW Holdings (UMW) with a higher SOP-based fair value of RM5.20 (from RM5) after reducing the projected losses from the unlisted O&G segment and M&E segment. We are assured that the group appears to be concise with its key actions it needs to take to improve its core segments.
Key points from an analyst briefing held yesterday are: 1) Charting a complete exit from O&G. Following the demerger of UMWOG in June, the group is still left with 16 assets that have dented its bottom line significantly in the past. It aims to dispose of most of these (12 of 16) by the year-end; 2) Auto on cruise control. The next addition to the local Toyota line-up may only be the CH-R in early 2018. UMW is still finalizing the pricing for this model and is sticking to the sensible target of 70K in sales for 2017, having accomplished 48% of this in the first half of the year.; 3) Lift off into Aerospace. The group is on track to make its first delivery of fan cases for the Rolls-Royce contract in 4Q.
The immediate goals for UMW would be to fortify the positions of its core segments and dispose of the remaining O&G assets. FY18 would be an especially precarious year as it works to set a stronger foundation while counting on a more stable external environment.
Other :
WCT Holdings : Bagging RM199.5mil MRT station job HOLD
QUICK TAKE
Inari Amertron : New distribution hub augurs well for local E&E players HOLD
STOCKS ON RADAR
George Kent, Lii Hen Industries,E.A. Technique, Kumpulan Jetson
NEWS HIGHLIGHTS
Cryptocurrency : Guidelines to be out by year-end — BNM
MRCB : To issue rights shares at 79 sen each
Scientex : Posts record 4Q earnings
Furniture Sector : Furniture maker Wegmans Holdings to list on ACE Market
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.
****************************************************************************************************************************************************************************************************************************************************************************************************************
DISCLAIMER:
This message may contain confidential and privileged information for its intended recipient(s) only. If you are not an intended recipient, you are hereby notified that any review, dissemination, and distribution, printing or copying of this message or any part thereof is strictly prohibited. Please delete the entire message and inform the sender of the error. Any opinions, conclusions and other information in this message that are unrelated to official business of AmBank Group are those of the individual sender and shall be understood as neither explicitly given nor endorsed by AmBank Group.
****************************************************************************************************************************************************************************************************************************************************************************************************************
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.