| 
| |
| |
| | | | | | | | | | | | | | Share Price: | MYR5.50 | Target Price: | MYR6.65 | Recommendation: | Buy | | |
|
|
| | | Inflection year (UMWH MK, CP MYR5.50, U/G to BUY, TP MYR6.65, Consumer Discretionary) | | We believe that the worst is over for UMWH, with earnings growth to resume, underpinned by higher vehicle sales and margin expansion, the latter thanks to a much stronger MYR. We project a strong core earnings rebound in FY18 (+3.3x YoY), continuing into FY19 (+44% YoY). Post its demerger with UMWOG, UMWH is refreshed with a strengthened balance sheet to move forward. We resume coverage on UMWH with a BUY rating and a new SOP-based TP of MYR6.65. | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 14,441.6 | 10,958.5 | 11,252.7 | 12,679.3 | EBITDA | 646.3 | (1,612.0) | 548.1 | 878.7 | Core net profit | 412.3 | 287.2 | 70.3 | 302.3 | Core EPS (sen) | 35.3 | 24.6 | 6.0 | 25.9 | Core EPS growth (%) | (51.5) | (30.4) | (75.5) | 330.2 | Net DPS (sen) | 20.0 | 0.0 | 0.0 | 12.9 | Core P/E (x) | 15.6 | 22.4 | 91.4 | 21.3 | P/BV (x) | 1.0 | 1.4 | 1.7 | 1.6 | Net dividend yield (%) | 3.6 | 0.0 | 0.0 | 2.4 | ROAE (%) | (0.6) | (29.3) | 0.4 | 7.7 | ROAA (%) | 2.4 | 1.7 | 0.5 | 2.7 | EV/EBITDA (x) | 22.6 | nm | 16.7 | 11.3 | Net debt/equity (%) | 35.0 | 65.5 | 32.1 | 41.3 |
| |
| | | |
| | MACRO RESEARCH | | | | | | COMEX Gold – The Bull is Still Intact
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | FBMKLCI rose for the second day on rotational play. At day's end, the benchmark index jumped 10.66pts to 1,803.45, breaching the 1,800 psychological level. Advancers were led by SIME, PCHEM and IOI. Market continued to be in a jovial mood with gainers outpacing losers by 716 to 335. A total of 5.05b shares worth MYR3.24b changed hands. With the 1,800 psychological level taken out and positive spillover from pre-election play, we expect FBMKCI to extend its upward trajectory. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
U.S: Payrolls at U.S. companies increased in December by the most in nine months, consistent with further progress in the labor market, according to ADP Research Institute. Private payrolls rose by 250k (190k est.), exceeding all estimates in a Bloomberg survey, after a revised 185k increase in Nov. Payrolls in goods-producing industries, which include builders and manufacturers, rose 28k; construction employment increased 16kService providers added 222k to payrolls. A separate report showed initial unemployment claims unexpectedly rose by 3,000 to 250,000 in the week ended Dec. 30. (Source: Bloomberg)
U.S: Consumer comfort advanced in 2017 to a 16-year high. American consumers last year were more upbeat on average than at any time since 2001, reflecting more favorable views of the economy, personal finances and the buying climate, according to the Bloomberg Consumer Comfort Index. Comfort measure averaged 50.0 in 2017, up from 43.6 a year earlier and the best reading since 51.8 in 2001. Weekly index eased to 51.8 from 52.4Gauge of national economy cooled to 53.6 last week from 54.1. Personal finances measure little changed at 59.4 after 59.6; buying-climate index fell to 42.5 from 43.3. (Source: Bloomberg)
U.K: Retail store sales slide over Christmas, BDO says. U.K. LFL sales in mid-market retail stores fell 2.3% in December, the fifth consecutive time they have dipped in the final month of the year, according to BDO's High Street Sales Tracker. Fashion sales fell 3.8%, sales of homewares rose 2.5%. Non-store sales (which includes online) rose 21.4%. Shoppers were deterred from visiting stores by snowy weather and weren't lured back by post-Christmas discounting, BDO says in its monthly report. (Source: Bloomberg)
U.K: London was the worst-performing home market in the U.K. last year for the first time in more than a decade and may be stuck there. Nationwide Building Society said values in the capital fell 0.5% -- the first full-year decline since the 2009 recession -- lagging behind a 2.6% increase nationally. It's the first time since 2004 that the city has ended the year as the slowest-growing region. The weakness may persist in 2018, with property website operator Rightmove and the Royal Institution of Chartered Surveyors both predicting price declines in the city. Nationally, values will increase on average, though Nationwide sees only about 1% growth. That compares with a 4.5% rate recorded in 2016. (Source: Bloomberg) | |
| | | | | Other News:
Vivocom: Bags MYR143m job to build affordable homes. The group has bagged an MYR143m contract from Almaventures Development S/B to build a 44-storey block housing 902 units of affordable housing, with seven floors of car park, in Jalan Gombak, Setapak. Its subsidiary Vivocom Enterprise S/B has accepted the letter of award from Almaventures for the project. The project will be completed within 36 months from the date of commencement. (Source: The Edge Financial Daily)
Amcorp Properties: To pump EUR15m more into JV with Grosvenor Group in Spain. The group has agreed to put an additional EUR15m (MYR72.45m) as capital into its 50:50 real estate joint venture in Spain with Grosvenor Group Ltd. The initial JV agreement was inked in July last year by AmProp unit, Amcorp Horizon S/B, with Grosvenor Group's indirect wholly-owned unit, Grosvenor Europe Investments Ltd. At the time, the capital commitment of each party in the JV was capped at EUR35m (MYR169.043m). Today, the parties inked a variation letter agreement to push up the cap by EUR15m, each. This will bring the new cumulative capital commitment in the JV from EUR70m to EUR100m. (Source: The Edge Financial Daily)
Pacific & Orient: Plans 1-for-6 bonus issue. The group has proposed to undertake a bonus issue on the basis of one bonus share for every six existing shares held, on an entitlement date to be fixed.The proposal, intended to reward shareholders for their continuous support of the company, will involve 40.99m new P&O shares. The bonus shares will be capitalised at 50sen each from the company's share premium account as at Jan 30, 2017 — a day before the Companies Act 2016 took effect — which stood at MYR24.3m. (Source: The Edge Financial Daily) | |
| |
| | | | | Disclaimer | | | This email and its attachment(s) are confidential and are intended solely for the use of the individual to whom it is addressed. Any views or opinions expressed are solely those of the author and do not necessarily represent those of Maybank Kim Eng or any of its affiliates. Intended recipients of this email are prohibited from disseminating, forwarding, printing and/or copying its contents. If you are not the intended recipient of this email, you are strictly prohibited to take any action based upon them, which also includes dissemination, forwarding, printing and copying of its contents. Maybank Kim Eng Research sent this e-mail to you because your Notification Preferences indicate that you want to receive information about our daily research reports. If you wish to read Disclaimer in details, please click HERE. | | | To unsubscribe or change preference settings, please contact your representative HERE. | | | | |
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.