| 
| |
| |
| | | | | | | | | | | | | | Share Price: | MYR1.12 | Target Price: | MYR1.25 | Recommendation: | Hold | | |
|
|
| | | A non-core acquisition? | | The acquisition of Bel Air Den Haag Baheer B.V. which owns a hotel by YTLP would inevitably give rise to questions surrounding business direction. Nevertheless, recent non-utility transactions have been relatively small, and thus have little impact on both balance sheet health and dividends. Maintain HOLD with an unchanged MYR1.25 TP. | | |
|
| | FYE Jun (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 10,240.5 | 9,778.2 | 9,412.0 | 9,587.9 | EBITDA | 2,777.5 | 2,464.2 | 2,587.2 | 2,694.4 | Core net profit | 872.0 | 676.5 | 539.2 | 598.7 | Core FDEPS (sen) | 11.2 | 8.7 | 6.9 | 7.7 | Core FDEPS growth(%) | (8.5) | (22.8) | (20.3) | 11.0 | Net DPS (sen) | 10.0 | 5.0 | 5.0 | 5.0 | Core FD P/E (x) | 10.0 | 12.9 | 16.2 | 14.6 | P/BV (x) | 0.7 | 0.7 | 0.7 | 0.7 | Net dividend yield (%) | 8.9 | 4.5 | 4.5 | 4.5 | ROAE (%) | 8.8 | 5.2 | 4.1 | 4.4 | ROAA (%) | 2.0 | 1.5 | 1.1 | 1.2 | EV/EBITDA (x) | 9.0 | 11.2 | 9.9 | 9.5 | Net debt/equity (%) | 115.6 | 125.1 | 125.0 | 124.0 |
| |
| | | |
| | | | | | | | | | | | Share Price: | MYR4.50 | Target Price: | MYR5.10 | Recommendation: | Hold | | |
|
|
| | | Cement supplier to ECRL | | LMC has secured a MYR270m contract to supply cement to all 8 packages of the ECRL for 21 months. This could add c.4% and c.2% to LMC's and the industry's 2018 cement offtake respectively. 1 Mar 2018's hike in bag cement ASPs by >20% has also sustain, we understand. However, the industry's bulk cement ASPs have yet to increase. We keep our earnings forecasts. Our TP is peg to 1.5x P/BV (-2SD to mean). | | |
|
| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 2,552.2 | 2,248.8 | 2,518.5 | 2,928.2 | EBITDA | 302.1 | (59.4) | 125.4 | 368.8 | Core net profit | 84.9 | (229.9) | (83.8) | 100.9 | Core EPS (sen) | 10.0 | (27.1) | (9.9) | 11.9 | Core EPS growth (%) | (66.3) | nm | nm | nm | Net DPS (sen) | 5.0 | 0.0 | 0.0 | 10.7 | Core P/E (x) | 45.0 | nm | nm | 37.9 | P/BV (x) | 1.3 | 1.3 | 1.4 | 1.4 | Net dividend yield (%) | 1.1 | 0.0 | 0.0 | 2.4 | ROAE (%) | 2.5 | (7.3) | (3.0) | 3.6 | ROAA (%) | 2.0 | (5.3) | (1.9) | 2.3 | EV/EBITDA (x) | 20.7 | nm | 33.8 | 11.3 | Net debt/equity (%) | 4.6 | 13.5 | 14.9 | 12.4 |
| |
| | | |
| | MACRO RESEARCH | | | | | | SHSZ300 Index: Range bound with Upward Bias
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | FBMKLCI rose 1.55pts to 1,847.94 yesterday, led by gains in DIGI, AMM and IOI. Market was choppy throughout the day as sentiment was weighed by external uncertainties such as US FOMC meeting and worries over global trade war. Decliners outpaced advancers by 574 to 332 with a total of 1.9b shares worth MYR1.7b changed hands. As Wall Street extended its losses, with major indices falling >1%, local stock market could succumb to another round of profit taking. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
U.S: Corporate America warns Trump against broad-based China tariffs. U.S. companies from Walmart Inc. to Amazon.com Inc. are warning President Donald Trump that any sweeping trade action against China could raise consumer prices, increase costs for businesses and hurt stock prices. Broad-based tariffs on Chinese goods would "trigger a chain reaction of negative consequences for the U.S. economy," a coalition of more than 40 business groups led by the Information Technology Industry Council said in a letter to the president. The coalition includes groups representing retailers and makers of everything from toys to wine, while the council represents companies including Amazon, Alphabet Inc.'s Google, Facebook Inc. and Microsoft Corp. U.S. Trade Representative Robert Lighthizer is leading an investigation into China's treatment of American intellectual property, and is expected in the coming weeks to hand over its recommendations to address any unfair practices to President Donald Trump. The administration is said to be considering wide- ranging tariffs on everything from consumer electronics to shoes and clothing made in China, according to people familiar with the matter. The administration is said to be considering targeting at least USD30b of Chinese imports. (Source: Bloomberg)
China: Yi Gang takes the helm of great money machine. -- China's new central bank governor, Yi Gang, inherits a powerful money machine and a vast policy portfolio. Yet the People's Bank of China is only part of an apparatus that ultimately answers to just one man: President Xi Jinping. Interest rate and financial regulatory calls need approval from Chinese officialdom, a reality that makes the PBOC far different from the more politically independent U.S. Federal Reserve and European Central Bank. With an implicit mandate to do whatever furthers China's economic agenda at home and abroad, the PBOC is an institution with awesome firepower. Its USD5.7tr in financial assets give it the biggest balance sheet among major global central banks—a product of years of trade surpluses and capital inflows. (Source: Bloomberg)
Italy: Production falls as political vacuum threatens momentum. Italian industrial output fell in January, signaling that the country's economic recovery may struggle to maintain its pace in coming months amid uncertain political conditions. Industrial production declined 1.9% from December, when it rose a revised 2.1%, national statistics office Istat said in Rome. Compared to a year earlier, work-day adjusted industrial output rose 4% YoY. After expanding 1.5% in 2017, the euro region's third-biggest economy remains below its pre-crisis peak and this month's inconclusive elections may add to concerns about the sustainability of Italy's recovery. The March 4 vote produced a hung parliament and an extended period of political gridlock could dampen the growth outlook. (Source: Bloomberg) | |
| | | | | :
Tenaga Nasional: Signs two PPAs for solar projects. Tenaga Nasional (TNB) has signed two large-scale solar (LSS) photovoltaic power purchase agreements (PPAs) to set up two facilities with a total capacity of about 60Mwac. The PPAs were signed following a competitive bidding exercise organised by the Energy Commission in the first quarter of 2017 to develop, among others, the transmission-connected LSS projects. The two PPAs were signed with special purpose companies TNB Bukit Selambau Solar S/B and RE Gebeng S/B, which were set up by the successful bidders namely TNB and RE Gebeng. The PPA with TNB Bukit Selambau is for 30Mwac and the proposed location of the facility is Kuala Muda, Kedah with commercial operation date scheduled for Dec 31, 2020 while the PPA with RE Gebeng is for 29.916Mwac and the proposed location is Kuantan, Pahang with commercial operation date scheduled for Feb 3, 2020. (Source: The Sun Daily)
Petronas Chemicals: USD1b bridging loan for Petronas Chemicals. Petronas Chemicals Group has executed a bridging loan agreement of USD1b (MYR3.9b) with external lenders comprising local and international banks, being one of the conditions for the divestment of its 50% stake in PRPC Polymers S/B to Saudi Arabian Oil Co (Saudi Aramco). The bridging loan will be used to finance part of the costs to develop, construct, commission and operate polymers and glycol plants. The plants are under construction in Pengerang, Johor, and are expected to be completed in 2019. The bridging loan has a tenure of 12 months with an extension of six months at the discretion of PRPC Polymers. (Source: The Sun Daily)
MRCB: Sells prime land three years after purchase. MRCB is disposing of a piece of freehold land in the Kuala Lumpur City Centre area to the Social Security Organisation (Socso) three years after purchasing it. The 1.87-acre (0.76ha) land in Jalan Kia Peng here, which previously served as the site for the official residence of the German ambassador to Malaysia, will be sold to Socso for MYR323m or MYR3,973.77 per sq ft. Since the disposal of the land is made within three years, the gains on the disposal – estimated at MYR30m may be subjected to real property gains tax at 30%. (Source: The Edge Financial Daily)
Boustead Holdings: Boustead, Petronas Carigali reach settlement. Boustead Holdings has mutually agreed on a separate settlement agreement with Petronas Carigali S/B and the joint operating partners following negotiations with the parties. Its subsidiary MHS Aviation has entered into separate confidential agreements or undertakings Petronas Carigali, ExxonMobil Exploration and Production Malaysia Inc, EnQuest Petroleum Production Malaysia Ltd, as well as Sapura Exploration and Production (PM) Inc. (Source: The Sun Daily)
AirAsia: In talks to set up airline serving Myanmar. AirAsia is in talks with a potential partner to open an airline serving Myanmar, in a move that would help the low-cost carrier cover up to 95% of the Southeast Asian travel market. AirAsia now has businesses in Malaysia – its home – along with India, Indonesia, the Philippines, Japan and Thailand, as well as plans to launch an airline in China. (Source: The Sun 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.