STOCK FOCUS OF THE DAY
Eonmetall Group: Gets steel racking OEM rights BUY
We maintain our BUY call, forecasts and FV of RM0.92 based on 8x FY18F EPS of 11.5 sen, at a discount to the manufacturing sector’s average 1-year forward PE of 10-11x to reflect Eonmetall’s relatively small market capitalisation of less than RM150mil.
Eonmetall has recently entered into a strategic partnership with Gonvarri Material Handling AS (Gonvarri), whereby Eonmetall has obtained the licensing rights to manufacture and distribute steel racking solutions under the product flagship of Constructor from Europe for an initial term of 5 years with the option to renew for a further 5 years. The strategic partnership allows both Gonvarri and Eonmetall to expand on their mutual plans to manufacture and distribute Constructor steel racking solutions across Asia-Pacific on the basis of equal profit sharing.
We are positive on the recent development but maintain our numbers as we have already imputed this into our forecasts previously.
Others :
Lafarge Malaysia: Wins ECRL cement supply contract HOLD
QUICK TAKES
UMW Holdings: Rationale for valuations HOLD
YTL Power International: Acquires Marriott The Hague HOLD
RETAIL RESEARCH
Stocks On Radar: CCK Consolidated, Uchi Technologies, Dagang NeXchange, Excel Force MSC
ECONOMIC HIGHLIGHTS
US: Will it be 3 or 4 rate hikes in 2018?
NEWS HIGHLIGHTS
MRCB: Sells prime land three years after purchase
EWI: Makes major inroads into London
Parkson Holdings: Parkson unit buys part of China property for RM124mil
AirAsia: In talks to set up Myanmar airline
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