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| | | | | | | | | | | | Sunway (SWB MK)
by Wei Sum Wong |
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| | | | | Share Price: | MYR1.65 | Target Price: | MYR2.02 | Recommendation: | Buy | | |
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| | | Results in line, sales beat expectations | | Sunway's 2017 net profit of MYR566m (+4% YoY) came in as expected. 2017 property sales beat its own/our target while its construction outstanding orderbook ended the year at a high of MYR6.1b, providing short-term earnings visibility. Sunway sets flat MYR1b effective property sales target for 2018. We adjust our earnings forecasts by -3% to -9% post-2017 results and introduce 2020 forecasts. Our RNAV-TP is raised to MYR2.02 (+5 sen; on an unchanged 0.75x P/RNAV peg). BUY. | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 4,655.6 | 5,374.8 | 6,574.1 | 6,980.4 | EBITDA | 1,596.1 | 725.4 | 932.4 | 996.1 | Core net profit | 547.4 | 566.3 | 600.7 | 648.8 | Core FDEPS (sen) | 11.4 | 11.8 | 12.5 | 13.5 | Core FDEPS growth(%) | (16.0) | 3.4 | 6.1 | 8.0 | Net DPS (sen) | 5.7 | 6.0 | 5.6 | 6.1 | Core FD P/E (x) | 14.5 | 14.0 | 13.2 | 12.2 | P/BV (x) | 1.1 | 1.0 | 1.0 | 0.9 | Net dividend yield (%) | 3.4 | 3.6 | 3.4 | 3.7 | ROAE (%) | na | na | na | na | ROAA (%) | 3.2 | 2.9 | 2.9 | 3.0 | EV/EBITDA (x) | 6.1 | 16.9 | 13.5 | 12.7 | Net debt/equity (%) | 40.5 | 45.0 | 44.9 | 44.3 |
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| | | | | | | | | | | | Share Price: | MYR4.20 | Target Price: | MYR5.00 | Recommendation: | Buy | | |
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| | | FY17 earnings in-line | | BIMB's FY17 results were within expectation. Our FY18/19 earnings forecasts are raised a marginal 1% to factor in lower credit costs for Bank Islam and we maintain our BUY call on the stock. Our SOP-based TP is lowered a marginal 10sen to MYR5.00 on rolling forward and updating our valuation parameters. | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Operating income | 2,440.0 | 2,531.7 | 2,720.6 | 2,878.4 | Pre-provision profit | 961.0 | 933.0 | 1,006.1 | 1,068.9 | Core net profit | 559.0 | 583.8 | 603.5 | 628.1 | Core EPS (MYR) | 0.36 | 0.36 | 0.36 | 0.37 | Core EPS growth (%) | 2.1 | (1.4) | (0.3) | 4.1 | Net DPS (MYR) | 0.13 | 0.00 | 0.16 | 0.16 | Core P/E (x) | 11.6 | 11.8 | 11.8 | 11.3 | P/BV (x) | 1.7 | 1.6 | 1.5 | 1.4 | Net dividend yield (%) | 3.1 | 0.0 | 3.8 | 3.9 | Book value (MYR) | 2.44 | 2.68 | 2.84 | 3.05 | ROAE (%) | 15.3 | 14.0 | 13.0 | 12.6 | ROAA (%) | 0.9 | 0.9 | 0.9 | 0.9 |
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| | | | | | | | | | | | Share Price: | MYR1.47 | Target Price: | MYR2.30 | Recommendation: | Buy | | |
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| | | 4Q17: Above expectations | | 4Q17 results positively surprised due to stronger-than-expected earnings from the Retailing segment. We raise our FY18-19 earnings forecasts by +5% p.a. and nudge up our TP to MYR2.30 (+10sen) pegged to 28x FY18 PER (at +0.5SD of mean; unchanged). We believe current valuation of 18x FY18 PER is attractive relative to its consumer peers. | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 4,018.7 | 4,088.2 | 4,389.2 | 4,536.6 | EBITDA | 461.4 | 531.8 | 556.0 | 578.4 | Core net profit | 90.3 | 106.0 | 115.7 | 124.4 | Core EPS (sen) | 6.4 | 7.6 | 8.2 | 8.9 | Core EPS growth (%) | (32.3) | 17.4 | 9.1 | 7.5 | Net DPS (sen) | 3.0 | 3.7 | 4.1 | 4.4 | Core P/E (x) | 22.8 | 19.5 | 17.8 | 16.6 | P/BV (x) | 1.1 | 1.1 | 1.0 | 1.0 | Net dividend yield (%) | 2.0 | 2.5 | 2.8 | 3.0 | ROAE (%) | 4.9 | 5.5 | 5.8 | 6.1 | ROAA (%) | 2.1 | 2.4 | 2.6 | 2.7 | EV/EBITDA (x) | 9.8 | 6.3 | 5.0 | 4.8 | Net debt/equity (%) | 47.0 | 43.8 | 35.7 | 34.2 |
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| | | | | | | | | | | | Share Price: | MYR3.72 | Target Price: | MYR6.00 | Recommendation: | Buy | | |
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| | | Strong finish to FY17 | | FY17 results beat expectations on lower-than-expected cost. Given the high earnings base of FY17, FY18's growth could be relatively muted before resuming its uptrend in FY19-20. Still, the market has yet to appreciate its growth achievement and future earnings potential as the stock trades at <10x 2018 PER (vs. industry's 25x) and EV/planted ha of MYR30,000, barely above replacement cost. SOP is a BUY with a revised TP of MYR6.00 on 14x 2018 PER as we roll forward our valuation base year. | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 4,416.1 | 4,911.7 | 4,911.7 | 4,894.1 | EBITDA | 339.7 | 556.9 | 571.2 | 622.5 | Core net profit | 132.2 | 239.3 | 245.1 | 279.3 | Core EPS (sen) | 30.0 | 41.9 | 42.9 | 48.9 | Core EPS growth (%) | 49.5 | 39.9 | 2.5 | 13.9 | Net DPS (sen) | 5.0 | 8.4 | 8.6 | 14.7 | Core P/E (x) | 12.4 | 8.9 | 8.7 | 7.6 | P/BV (x) | 0.9 | 1.0 | 0.9 | 0.9 | Net dividend yield (%) | 1.3 | 2.3 | 2.3 | 3.9 | ROAE (%) | 8.1 | 12.0 | 11.2 | 11.7 | ROAA (%) | 3.6 | 5.6 | 5.6 | 6.1 | EV/EBITDA (x) | 6.4 | 5.6 | 4.9 | 4.1 | Net debt/equity (%) | 22.9 | 35.2 | 22.4 | 11.5 |
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| | | | | | | | | | | | Share Price: | MYR1.57 | Target Price: | MYR1.75 | Recommendation: | Buy | | |
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| | | Waiting for the show to start | | 1HFY6/18 net profit accounted for 18% of our full year estimate. Revenue and profit recognition from its active property development was still low but it should accelerate in 2HFY6/18. Unbilled sales stand at ~MYR1.0b. Encore Melaka is on track to open in 4QFY6/18 and we estimate that it will contribute ~MYR50m p.a. from FY6/19 onwards. Our earnings estimates, BUY call and TP are unchanged. We continue to like YTB as the best proxy to Melaka's booming tourism industry. | | |
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| | FYE Jun (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 17.9 | 85.4 | 298.5 | 663.3 | EBITDA | 2.1 | 18.6 | 64.8 | 182.4 | Core net profit | 0.9 | 13.7 | 39.8 | 120.1 | Core FDEPS (sen) | 0.5 | 3.2 | 5.4 | 16.4 | Core FDEPS growth(%) | (83.2) | 492.7 | 70.4 | 201.4 | Net DPS (sen) | 0.0 | 0.0 | 0.0 | 0.0 | Core FD P/E (x) | nm | 49.3 | 28.9 | 9.6 | P/BV (x) | 2.9 | 1.4 | 1.3 | 1.1 | Net dividend yield (%) | 0.0 | 0.0 | 0.0 | 0.0 | ROAE (%) | 1.0 | 6.9 | 11.1 | 25.7 | ROAA (%) | 0.7 | 3.9 | 5.3 | 11.2 | EV/EBITDA (x) | 72.4 | 29.8 | 15.3 | 5.0 | Net debt/equity (%) | net cash | net cash | 11.2 | net cash |
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| | | | | | | | | | | | Share Price: | MYR15.70 | Target Price: | MYR16.00 | Recommendation: | Hold | | |
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| | | Routine again | | 4MFY12/17 (Sep-Dec 2017) earnings were in-line, with Tenaga over-recovering on generation costs. A DPR of 50% for the financial period is unchanged from FY8/17. Maintain HOLD with an unchanged MYR16.00 TP. In our view, the market will need some time to digest both the new RP2 earnings step-down and the 1H18 subsidy funding. | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 44,531.5 | 63,244.0 | 48,768.0 | 49,984.6 | EBITDA | 14,794.2 | 20,667.5 | 15,541.3 | 16,184.4 | Core net profit | 7,725.8 | 9,341.6 | 6,571.2 | 6,692.0 | Core FDEPS (sen) | 136.9 | 164.6 | 115.8 | 117.9 | Core FDEPS growth(%) | 9.6 | 20.2 | (29.7) | 1.8 | Net DPS (sen) | 32.0 | 82.4 | 58.0 | 59.1 | Core FD P/E (x) | 11.5 | 9.5 | 13.6 | 13.3 | P/BV (x) | 1.7 | 1.6 | 1.5 | 1.4 | Net dividend yield (%) | 2.0 | 5.2 | 3.7 | 3.8 | ROAE (%) | 14.8 | 17.6 | 11.2 | 10.8 | ROAA (%) | 6.2 | 6.7 | 4.5 | 4.5 | EV/EBITDA (x) | 6.5 | 5.5 | 7.4 | 7.0 | Net debt/equity (%) | 32.6 | 43.9 | 40.2 | 36.8 |
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| | | | | | | | | | | | Share Price: | MYR7.19 | Target Price: | MYR7.70 | Recommendation: | Hold | | |
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| | | FY17 results in-line | | The outlook for CIMB is brighter into FY18 amid stronger loan growth and lower credit costs, though this is expected to be dampened somewhat by expected NIM compression. Presently, however, much of the positives are factored in, in our view. Our FY18E ROE of 10.0% trails management's target of 10.5%. We maintain a HOLD call with an unchanged TP of MYR7.70 (FY19 PBV peg of 1.4x, ROE 10.5%). | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Operating income | 16,065.3 | 17,626.5 | 17,923.2 | 18,851.8 | Pre-provision profit | 7,413.6 | 8,492.9 | 8,579.9 | 9,287.5 | Core net profit | 3,414.4 | 4,355.2 | 4,918.0 | 5,451.6 | Core EPS (MYR) | 0.39 | 0.48 | 0.53 | 0.59 | Core EPS growth (%) | (2.4) | 22.9 | 10.4 | 10.8 | Net DPS (MYR) | 0.20 | 0.25 | 0.28 | 0.31 | Core P/E (x) | 18.3 | 14.9 | 13.5 | 12.2 | P/BV (x) | 1.4 | 1.3 | 1.3 | 1.2 | Net dividend yield (%) | 2.8 | 3.5 | 3.9 | 4.3 | Book value (MYR) | 5.24 | 5.37 | 5.51 | 5.79 | ROAE (%) | 7.9 | 9.3 | 10.0 | 10.5 | ROAA (%) | 0.7 | 0.9 | 1.0 | 1.0 |
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| | | | | | | | | | | | Share Price: | MYR4.14 | Target Price: | MYR4.60 | Recommendation: | Hold | | |
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| | | 3QFY18 results disappoint | | AMMB's 9MFY18 earnings disappointed mainly on a net credit charge position. Our FY18-20E earnings are cut by 10% per annum and we estimate an ROE of 7.0%/7.8% for FY18/19 respectively (8.3%/8.7% previously). We roll forward valuations to CY19 on an unchanged PBV peg of 0.8x and lower our TP to MYR4.60 from MYR4.80. HOLD maintained. | | |
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| | FYE Mar (MYR m) | FY16A | FY17A | FY18E | FY19E | Operating income | 3,693.3 | 3,728.9 | 3,792.8 | 4,046.7 | Pre-provision profit | 1,519.0 | 1,568.4 | 1,489.8 | 1,863.0 | Core net profit | 1,355.9 | 1,216.5 | 1,245.8 | 1,371.8 | Core EPS (MYR) | 0.45 | 0.40 | 0.41 | 0.46 | Core EPS growth (%) | (17.2) | (10.3) | 2.2 | 10.1 | Net DPS (MYR) | 0.16 | 0.18 | 0.17 | 0.18 | Core P/E (x) | 9.2 | 10.2 | 10.0 | 9.1 | P/BV (x) | 0.8 | 0.8 | 0.7 | 0.7 | Net dividend yield (%) | 3.7 | 4.3 | 4.0 | 4.4 | Book value (MYR) | 5.03 | 5.32 | 5.69 | 5.96 | ROAE (%) | 9.2 | 7.8 | 7.5 | 7.8 | ROAA (%) | 1.0 | 0.9 | 0.9 | 0.9 |
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| | | | | | | | | | | | Share Price: | MYR1.41 | Target Price: | MYR1.57 | Recommendation: | Hold | | |
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| | | Briefing note | | On 27 Feb analyst briefing, management reaffirmed SDPR's priorities in: 1) asset monetisation of its non-core assets, 2) strategic partnership with local and international players to jointly develop its landbank in order to enhance their values further and 3) short-term focus on mid-range landed properties as well as reducing its unsold inventories worth MYR2.2b in value. We adjust our earnings forecasts by +1-29%. Our RNAV-TP is tweaked to MYR1.57 (-1sen) on an unchanged 0.55x P/RNAV peg. | | |
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| | FYE Jun (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 2,590.7 | 2,564.4 | 1,712.9 | 2,342.8 | EBITDA | 1,033.1 | 556.2 | 1,018.9 | 915.8 | Core net profit | 749.1 | 607.9 | 841.5 | 701.1 | Core EPS (sen) | 11.0 | 8.9 | 12.4 | 10.3 | Core EPS growth (%) | 33.6 | (18.8) | 38.4 | (16.7) | Net DPS (sen) | 0.0 | 0.0 | 4.9 | 4.1 | Core P/E (x) | 12.8 | 15.8 | 11.4 | 13.7 | P/BV (x) | 1.8 | 1.5 | 1.0 | 0.9 | Net dividend yield (%) | 0.0 | 0.0 | 3.5 | 2.9 | ROAE (%) | 18.2 | 10.7 | 10.5 | 7.1 | ROAA (%) | 6.2 | 4.5 | 5.9 | 4.6 | EV/EBITDA (x) | na | na | 10.7 | 12.8 | Net debt/equity (%) | 22.4 | 1.4 | 10.0 | 17.8 |
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| | | | | | | | | | | | Share Price: | MYR1.52 | Target Price: | MYR1.49 | Recommendation: | Hold | | |
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| | | 4Q17: Lifted by higher other income | | 4Q17 results were above expectations mainly due to higher other income arising from compensation income from vendors. We raise our earnings forecast by 3% for FY18 assuming higher other income but left FY19 unchanged. Our TP is lifted to MYR1.49 (+25sen) on rolling forward our valuation base year to CY19. We expect a better FY18 on new store growth and as SEM fine-tunes its cost efficiencies (eg. supply chain). | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 2,103.4 | 2,187.1 | 2,341.0 | 2,538.9 | EBITDA | 126.5 | 139.0 | 157.8 | 170.9 | Core net profit | 54.0 | 50.1 | 60.1 | 67.7 | Core EPS (sen) | 4.4 | 4.1 | 4.9 | 5.5 | Core EPS growth (%) | (3.3) | (7.1) | 19.9 | 12.7 | Net DPS (sen) | 4.7 | 2.0 | 2.5 | 2.8 | Core P/E (x) | 34.5 | 37.2 | 31.0 | 27.5 | P/BV (x) | 52.9 | 25.2 | 17.9 | 13.5 | Net dividend yield (%) | 3.1 | 1.3 | 1.6 | 1.8 | ROAE (%) | 52.5 | 91.8 | 67.4 | 56.0 | ROAA (%) | 7.1 | 6.4 | 7.3 | 7.6 | EV/EBITDA (x) | 14.3 | 14.4 | 12.4 | 11.3 | Net debt/equity (%) | 188.2 | 157.2 | 86.6 | 44.6 |
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| | | | | | | | | | | | Share Price: | MYR5.85 | Target Price: | MYR6.10 | Recommendation: | Hold | | |
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| | | 3QFY18: Within expectations | | 9MFY18 net profit of MYR176m (+3% YoY) was in-line with our full year forecast. A second interim DPS of 10sen was declared within the quarter, bringing its total DPS to 25sen for FY18 YTD. No change to our earnings forecasts, DPS estimates of 25sen p.a for FY18E-FY20E, and RNAV-TP of MYR6.10. | | |
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| | FYE Mar (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 416.2 | 534.2 | 540.6 | 546.0 | EBITDA | 353.3 | 460.6 | 459.6 | 456.9 | Core net profit | 174.1 | 221.0 | 226.8 | 241.3 | Core EPS (sen) | 33.4 | 42.1 | 43.2 | 46.0 | Core EPS growth (%) | 25.0 | 25.9 | 2.6 | 6.4 | Net DPS (sen) | 25.0 | 25.0 | 25.0 | 25.0 | Core P/E (x) | 17.5 | 13.9 | 13.5 | 12.7 | P/BV (x) | 5.0 | 4.3 | 3.8 | 3.3 | Net dividend yield (%) | 4.3 | 4.3 | 4.3 | 4.3 | ROAE (%) | na | na | na | na | ROAA (%) | 7.9 | 9.8 | 9.8 | 10.3 | EV/EBITDA (x) | 10.0 | 8.3 | 7.8 | 7.5 | Net debt/equity (%) | 143.6 | 95.4 | 65.3 | 37.0 |
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| | | | | | | | | | | | Share Price: | MYR1.20 | Target Price: | MYR1.31 | Recommendation: | Hold | | |
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| | | Met expectations (MSGB MK, CP MYR1.20, HOLD, TP MYR1.31, Property) | | MSGB's 2017 core earnings are within our but below consensus estimates. 2017 locked-in property sales of MYR1.8b met its own/our expectations. In view of the challenging property market outlook, management targets a flat MYR1.8b sales for 2018. We adjust our 2018/19 net profit forecasts by -5%/+7% post-actual 2017 results and we introduce 2020 forecasts. Our RNAV-TP is lowered to MYR1.31 (-13sen; on a lower 0.55x P/RNAV peg). Reiterate HOLD. | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 2,957.6 | 2,915.8 | 3,012.9 | 3,059.9 | EBITDA | 509.1 | 506.8 | 590.4 | 590.6 | Core net profit | 319.5 | 294.9 | 317.6 | 317.0 | Core EPS (sen) | 13.3 | 12.2 | 13.1 | 13.1 | Core EPS growth (%) | (5.7) | (8.2) | 7.7 | (0.2) | Net DPS (sen) | 6.5 | 6.5 | 5.2 | 5.2 | Core P/E (x) | 9.0 | 9.9 | 9.2 | 9.2 | P/BV (x) | 0.9 | 0.8 | 1.0 | 0.9 | Net dividend yield (%) | 5.4 | 5.4 | 4.4 | 4.4 | ROAE (%) | na | na | na | na | ROAA (%) | 5.0 | 4.4 | 4.6 | 4.6 | EV/EBITDA (x) | 6.9 | 4.8 | 3.0 | 2.7 | Net debt/equity (%) | 2.0 | net cash | net cash | net cash |
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| | | | | | | | | | | | Share Price: | MYR2.90 | Target Price: | MYR3.13 | Recommendation: | Hold | | |
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| | | 3QFY18: Above expectation | | 3QFY3/18 results beat our expectation on strong contribution from its associate, Muda Holdings. Accordingly, we raise our FY18E-20E associate profit contribution but also factor in higher raw material costs, resulting in +15%/-2%/+6% FY18E/19E/20E core earnings adjustments. Our TP is lowered slightly to MYR3.13 (-6sen) on an unchanged FY19E PER of 11.6x. We think Asia File still lacks catalysts and is fairly valued for now. Yields provide support. | | |
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| | FYE Mar (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 389.9 | 350.3 | 359.0 | 364.7 | EBITDA | 103.4 | 75.9 | 68.5 | 58.8 | Core net profit | 64.2 | 57.2 | 61.1 | 52.1 | Core FDEPS (sen) | 33.3 | 29.6 | 31.7 | 27.0 | Core FDEPS growth(%) | 22.1 | (11.0) | 6.8 | (14.7) | Net DPS (sen) | 16.0 | 16.0 | 16.0 | 14.0 | Core FD P/E (x) | 8.7 | 9.8 | 9.2 | 10.7 | P/BV (x) | 1.1 | 1.0 | 1.0 | 0.9 | Net dividend yield (%) | 5.5 | 5.5 | 5.5 | 4.8 | ROAE (%) | na | na | na | na | ROAA (%) | 10.8 | 8.9 | 9.1 | 7.4 | EV/EBITDA (x) | 7.9 | 8.2 | 7.4 | 8.5 | Net debt/equity (%) | net cash | net cash | net cash | net cash |
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| | | | | | | | | | | | Share Price: | MYR0.16 | Target Price: | MYR0.06 | Recommendation: | Sell | | |
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| | | FY17: Missed expectations | | FY17 results came in below ours/ consensus expectations, which led to sizeable cuts in our FY18-19E earnings. Alam also needs to address its debt repayment issue with an amicable restructuring solution. This, in our view, outweighs the potential positives emerging from OSV tenders in 1H18. Until these issues are addressed, Alam remains a SELL. Our new MYR0.06 TP is based on 0.1x BV (unchanged, rolled over by a year), in line with the valuations of peers that faced similar debt default risk | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 229.5 | 159.8 | 197.6 | 211.3 | EBITDA | 19.8 | (34.5) | 24.0 | 28.6 | Core net profit | (89.8) | (99.6) | (25.3) | (18.6) | Core EPS (sen) | (9.7) | (10.8) | (2.7) | (2.0) | Core EPS growth (%) | nm | nm | nm | nm | Net DPS (sen) | 0.0 | 0.0 | 0.0 | 0.0 | Core P/E (x) | nm | nm | nm | nm | P/BV (x) | 0.2 | 0.2 | 0.3 | 0.3 | Net dividend yield (%) | 0.0 | 0.0 | 0.0 | 0.0 | ROAE (%) | (17.0) | (22.0) | (4.3) | (3.3) | ROAA (%) | (8.4) | (10.9) | (3.0) | (2.2) | EV/EBITDA (x) | 17.6 | nm | 10.2 | 8.4 | Net debt/equity (%) | 14.9 | 16.2 | 17.9 | 17.4 |
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| | | | | | | | | | Ta Ann (TAH MK)
by Chee Ting Ong |
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| | | | | Share Price: | MYR3.43 | Target Price: | MYR3.70 | Recommendation: | Hold | | |
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| | | No earnings surprises | | Ta Ann's core results met our expectation but missed consensus. Uncertainties remain with its timber division which reported two quarters of losses following reduced log export quota (-10-ppts to 20%) since 3Q17. Ta Ann remains a HOLD with a revised TP of MYR3.70 on 13x 2018 PER (5-year historical mean) as we roll forward our valuation base year (previously MYR3.86 on 15x 2017 PER). | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 1,147.8 | 1,172.9 | 1,219.0 | 1,270.8 | EBITDA | 277.9 | 311.3 | 319.7 | 363.4 | Core net profit | 125.6 | 119.3 | 126.5 | 150.8 | Core EPS (sen) | 28.2 | 26.8 | 28.4 | 33.9 | Core EPS growth (%) | (25.4) | (5.0) | 6.1 | 19.2 | Net DPS (sen) | 10.0 | 10.0 | 11.4 | 13.6 | Core P/E (x) | 12.2 | 12.8 | 12.1 | 10.1 | P/BV (x) | 1.2 | 1.1 | 1.1 | 1.0 | Net dividend yield (%) | 2.9 | 2.9 | 3.3 | 4.0 | ROAE (%) | 10.2 | 9.1 | 9.1 | 10.2 | ROAA (%) | 6.2 | 5.4 | 5.4 | 6.2 | EV/EBITDA (x) | 6.7 | 6.3 | 5.9 | 4.8 | Net debt/equity (%) | 5.4 | 19.4 | 16.5 | 5.5 |
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| | MACRO RESEARCH | | | | | | Steady growth in money supply
by Suhaimi Ilias |
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| | | | | | Money supply (M3) growth was relatively stable at +4.6% YoY in Jan 2018 (Dec 2017: +4.7% YoY), supported by growth in credit and deposits as well as the rise in external reserves. Meanwhile, BNM net FX shorts position dropped for the ninth consecutive month. | |
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| | | | | | Inflation rate goes sub-3%
by Suhaimi Ilias |
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| | | | | | Inflation rate in Jan 2018 eased to 13-month low of +2.7% YoY (Dec 2017: +3.5% YoY) on slower rise in fuel and food prices, while core inflation rate remained at +2.2% YoY (Dec 2017: +2.2% YoY). Expect 2018 headline inflation rate to slow to +2.8% (2017: +3.7%) and thus BNM to keep OPR at 3.25% for the rest of this year after the +25bps hike on 25 Jan 2018. | |
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| | | | | | FBMSC Index: Trapped in a Bear Territory
by Nik Ihsan Raja Abdullah |
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| | | | | | Dark cloud loomed over the local bourses as FBMKLCI plunged 15.26pts to 1,856.20 yesterday. Sentiment was weighed by regional selloff and disappointing corporate earnings. Decliners were led by AMM, IHH and SDPL. Market breadth was bearish with losers outpacing gainers by 812 to 265. A total of 2.95b shares worth MYR3.64b changed hands. As Wall Street tumbled overnight, expect another volatile session today. O&G stocks could come under pressure as oil price tanked. | |
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| NEWS | | | Outside Malaysia:
U.S: Foreign holdings of securities rise to record USD18tr. Foreign holdings of U.S. securities rose to a record USD18.4tr as of the end of June, according to preliminary data released by Treasury. An annual survey of foreign portfolio investments -- including U.S. stocks along with short-and long-term debt -- showed holdings rose by 8%, up from USD17.1tr a year earlier, the department said in a statement on its website. Japan was largest investing country with USD2tr, followed by the Cayman Islands at USD1.7tr and the U.K. and China at about USD1.5tr each. Luxembourg rounded out the top five at USD1.4tr. (Source: Bloomberg)
Euro-Area: Slowing inflation helps Draghi push back exit talk. A third month of slowing inflation in the euro-area has given European Central Bank President Mario Draghi ammunition to ward supporters of a faster stimulus exit a little while longer. The rate of price growth slowed to 1.2% YoY this month from 1.3% YoY, dropping to its weakest since 2016. The core measure was unchanged at 1% YoYt. The figures follow a series of releases that have checked the economy's thundering momentum at the start of 2018, which had emboldened policy makers who want a faster unwinding of the central bank's crisis-era monetary stimulus. (Source: Bloomberg)
Germany: Unemployment fell more than expected as companies in Europe's largest economy stepped up hiring to fill orders bolstered by rising global demand. The number of people out of work declined a seasonally adjusted 22,000 in February to 2.393 million, the Federal Labor Agency in Nuremberg said. The jobless rate held at a record low of 5.4%. Joblessness fell by about 17,000 in West Germany and by some 6,000 in the eastern part of the country. (Source: Bloomberg)
Japan: Growing exports drive increase in business investment. Growing exports underpinned solid capital investment by Japanese companies during the final quarter of 2017. Company profits rose slightly during the quarter. Capital spending rose 4.3% YoY in the fourth quarter of 2017 from the same period a year earlier. Spending minus software increased 4.7% YoY. Corporate profits were up 0.9% YoY. Company sales increased 5.9% YoY. (Source: Bloomberg)
S. Korea: Parliament approved a bill to lower the limit on weekly work hours to 52 from 68, following years of battle among lawmakers, labor unions and businesses. The passage is a win for President Moon Jae-in, who was elected last year promising workers a better life, including shorter work hours and higher incomes. Moon has also pushed through a 16% increase in the minimum wage this year. The revision allows 40 regular hours per week and 12 overtime hours, including those worked on weekends. Employees will get 50% to 100% additional pay for weekends, depending on how many hours they put in. The legislation will take effect in stages based on company size. Firms with 300 or more employees will need to abide by the law from July, and those with 50 to 299 workers from 2020. (Source: Bloomberg) | |
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UEM Sunrise: Partners Australia's WOTSO. UEM Sunrise is partnering Australia's workspace provider WOTSO Workspace Pty Ltd to form a 50:50 joint-venture company to manage the operations for the lease of co-working space and serviced office suites in Malaysia. Its unit UEM Sunrise Properties S/B has entered into a JV agreement with WOTSO's subsidiary WOTSO SEA Pty Ltd. The JV company will explore leasing opportunites and identify potential commercial and/or retail developments for co-working spaces in Malaysia. (Source: The Sun Daily)
AWC: Seeks to diversify into rail-related works via MYR43.5m stake buy. AWC is proposing to diversify its existing engineering services business to include rail-related works via the acquisition of a 60% stake in Trackwork & supplies S/B for MYR43.5m. AWC had entered into a conditional share sale agreement with Goh Poey Hong, Chong Kim Loong, Goh Tse Woei, Kong Keat Voon, Chong Chong Hong, Lim Huey Yih and Shaun Chan Thiam Eng for the proposed stake acquisition. Out of the MYR43.5m purchase consideration, MYR20m will be satisfied through cash and the rest the issuance of new shares in AWC. (Source: The Edge Financial Daily) | |
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