STOCK FOCUS OF THE DAY
TSH Resources : Positive FCF for first time in five years Hold
Maintain HOLD on TSH Resources with an unchanged fair value of RM1.70/share. Our fair value is based on an FY19F PE of 20x. We have rolled forward the basis of our fair value from FY18F to FY19F as we believe that FY19F is a better reflection of the group's earnings.
TSH's FY18F net profit is expected to be hit by a 60% increase in depreciation expense as a result of the implementation of the FRS141 accounting standard. Although we had reduced TSH's FY18F net profit earlier to account for this, we reckon that our numbers should be more conservative. Hence, we have revised the group's FY18F net profit by 9.7% this time around. Under the accounting standard, plantation companies have to depreciate their oil palm estates when they reach maturity.
Others :
B Sports Toto : To be hit by loss of exclusive rights in Luzon Hold
QUICK TAKES
Felda Global: To inject MSM into SPV run by Syed Mokhtar? Hold
UMW Holdings : UMW stands by its offer price for MBM Hold
Plantation Sector : News flow for week 12 – 16 March Neutral
RETAIL RESEARCH
Stocks On Radar: Axiata Group, V.S. Industry, MyEG Services, Chin Hin Group
ECONOMIC HIGHLIGHTS
Euro – Expect ECB to normalize inflation
NEWS HIGHLIGHTS
Serba Dinamik : Sets sights on Senegal
Apex Healthcare : Goes into e-commerce
Bursa Malaysia : Stretched valuation remains among smaller cap stocks
Leader Steel : Expects higher demand for its products
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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