Wednesday, December 6, 2017

FW: AmBank Research - Transport Sector : Bright spots in tourism and e-commerce NEUTRAL, 6 Dec 2017 (AMENDED COPY)

 

 

AMENDED COPY on AmWatch 171206

 

 

SECTOR FOCUS OF THE DAY       

Transport Sector : Bright spots in tourism and e-commerce                                          Neutral

 

We are NEUTRAL on the transportation sector in 2018. While we like transport firms which operate (or have a growing presence) in the tourism and e-commerce space, we are cautious on seaport operators. 

 

Transport firms operating in the tourism space, i.e. AirAsia and Malaysia Airports, will benefit from the sustained recovery in tourist arrivals in 2018 (after reporting the first dip since 2003 in 2015 following the air disasters of MH370 and MH17 in 2014) (Exhibit 2). In his Budget 2018 speech, PM Datuk Seri Najib Razak said that Malaysia’s tourist arrivals should hit 28mil in 2018 (up 3.3% from 27.1mil in 2017 based on the projection by FT Confidential Research). The number should continue to grow, leading up to Visit Malaysia Year in 2020, when Malaysia is also slated to host a series of high-profile international events including the Commonwealth Heads of Government Meeting (CHOGM), the APEC Summit and World Congress of Information Technology (WCIT).

 

The rapidly expanding e-commerce sector, particularly, online shopping, has created huge opportunities for parcel delivery service providers such as Pos Malaysia. Meanwhile, Malaysia’s presence in the regional and global e-commerce market is on the cusp of an unprecedented quantum leap forward, driven by the Alibaba-backed Digital Free Trade Zone (DFTZ) project in the KLIA Aeropolis. The DFTZ will serve as a regional e-fulfilment centre (virtual zone) as well as a regional e-commerce logistics hub (physical zone). Apart from Malaysia Airports (the landowner and developer of the KL Aeropolis), we believe local logistics players (including warehouse operators) are poised to garner a slice of action in the physical zone of the DFTZ.

 

 

Others :

Cahya Mata Sarawak : 6-month extension for state road maintenance contract  Buy

 

 

 

ECONOMIC HIGHLIGHT

Australia : RBA stuck with its policy rate

 

 

NEWS HIGHLIGHTS

Property Sector : Govt softens stance on luxury property freeze

Property Sector : Klang Valley retail occupancy rate at 5-year low

Pharmaniaga : To invest RM100mil in Puchong vaccine plant

YTL Corp : To develop four hotels with Marriott International

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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