| 
| |
| |
| |
| | | | | | | | | | | | | | Share Price: | MYR0.50 | Target Price: | MYR1.20 | Recommendation: | Buy | | |
|
|
| | | FY1/18 results in line | | Impairment aside in 4QFY1/18, FY1/18 core net loss came in line with our estimates but below consensus. SAPE is optimistic of the sector's recovery, premised on improving tender prospects and sentiment. Its midterm target is to: (i) grow orderbook, (ii) lower debt levels and (iii) monetise its E&P assets, as it balances growth with lean financials. Our TP is SOP-based and unchanged, fully rolled over to FY20. | | |
|
| | FYE Jan (MYR m) | FY17A | FY18A | FY19E | FY20E | Revenue | 7,651.3 | 5,895.0 | 5,858.7 | 0.0 | EBITDA | 3,913.3 | 1,515.0 | 1,383.0 | 1,881.4 | Core net profit | 447.3 | (309.0) | (276.3) | 279.9 | Core EPS (sen) | 7.5 | (5.2) | (4.6) | 4.7 | Core EPS growth (%) | (55.5) | nm | nm | nm | Net DPS (sen) | 1.0 | 1.0 | 1.0 | 1.0 | Core P/E (x) | 6.7 | nm | nm | 10.6 | P/BV (x) | 0.2 | 0.3 | 0.3 | 0.3 | Net dividend yield (%) | 2.0 | 2.0 | 2.0 | 2.0 | ROAE (%) | 1.6 | (21.6) | (3.0) | 3.0 | ROAA (%) | 1.2 | (0.9) | (0.9) | 1.0 | EV/EBITDA (x) | 6.5 | 12.7 | 13.2 | 9.7 | Net debt/equity (%) | 115.7 | 155.5 | 168.1 | 163.6 |
| |
| | | |
| | | | | | | | | | | | Share Price: | MYR2.52 | Target Price: | MYR3.18 | Recommendation: | Buy | | |
|
|
| | | Within expectations | | 1HFY7/18 earnings were within our expectation at 46% of our full-year forecast. Despite a slight QoQ weakness in 2QFY18, we believe that earnings would catch up in 2HFY18 as utilisation for VSI's new box-build production lines gain traction with a key product launch recently by VSI's largest client. We make no changes to our forecasts. VSI's fundamentals are intact with visible growth over the next 3 years. Our MYR3.18 TP is peg to an unchanged 17.5x CY19 EPS (in line with peers). Maintain BUY. | | |
|
| | FYE Jul (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 2,175.6 | 3,281.3 | 4,174.5 | 4,946.4 | EBITDA | 226.4 | 322.0 | 404.9 | 488.9 | Core net profit | 135.4 | 175.6 | 206.5 | 267.2 | Core EPS (sen) | 8.6 | 11.1 | 13.1 | 16.9 | Core EPS growth (%) | (18.0) | 29.7 | 17.6 | 29.4 | Net DPS (sen) | 4.7 | 5.9 | 6.5 | 8.4 | Core P/E (x) | 29.4 | 22.7 | 19.3 | 14.9 | P/BV (x) | 4.5 | 3.8 | 3.4 | 3.1 | Net dividend yield (%) | 1.9 | 2.3 | 2.6 | 3.4 | ROAE (%) | 14.2 | 16.1 | 18.6 | 21.8 | ROAA (%) | 7.1 | 7.2 | 6.8 | 8.0 | EV/EBITDA (x) | 10.9 | 12.6 | 11.5 | 9.5 | Net debt/equity (%) | 18.4 | 28.3 | 32.9 | 29.7 |
| |
| | | |
| | | | | | | | | | | | Share Price: | MYR2.02 | Target Price: | MYR2.10 | Recommendation: | Hold | | |
|
|
| | | Weak end to a challenging year | | 4QFY1/18 and FY1/18 results disappointed on lower-than-expected ARPU. YoY decline in TV subscription revenue continues to accelerate. We cut our earnings estimates by 9-10%. Although we expect FY19 EBITDA to dip temporarily due to FIFA World Cup content cost, we do not expect long term EBITDA to be much higher than that of FY17 and FY18. Thus, we also trim our terminal growth rate from 2.5% to 1.0% which lead to a lower DCF-based TP of MYR2.10 from MYR2.55. | | |
|
| | FYE Jan (MYR m) | FY17A | FY18A | FY19E | FY20E | Revenue | 5,612.6 | 5,530.8 | 5,487.1 | 5,599.6 | EBITDA | 1,816.5 | 1,819.8 | 1,663.7 | 1,855.8 | Core net profit | 663.4 | 677.7 | 588.0 | 754.6 | Core FDEPS (sen) | 12.7 | 13.0 | 11.2 | 14.4 | Core FDEPS growth(%) | 0.2 | 2.2 | (13.6) | 28.3 | Net DPS (sen) | 12.5 | 12.5 | 10.8 | 13.9 | Core FD P/E (x) | 15.9 | 15.5 | 18.0 | 14.0 | P/BV (x) | 16.9 | 16.1 | 15.5 | 14.8 | Net dividend yield (%) | 6.2 | 6.2 | 5.3 | 6.9 | ROAE (%) | 101.9 | 120.7 | 88.3 | 108.7 | ROAA (%) | 10.1 | 10.3 | 8.9 | 12.3 | EV/EBITDA (x) | 9.5 | 9.5 | 8.4 | 7.2 | Net debt/equity (%) | 481.0 | 571.2 | 501.3 | 417.3 |
| |
| | | |
| | SECTOR RESEARCH | | | | | | HH debt ratio improves | NEUTRAL
by Desmond Ch'ng |
|
|
|
| | | | | | The ongoing message from BNM's 2017 Financial Stability and Payment Systems Report is that the banking system remains resilient under severe stress test scenarios. The household segment continues to be stable, but the Central Bank remains cautious over the oversupply situation in the non-residential property sector and expects oil price uncertainties to continue to weigh on the oil & gas sector. We maintain our NEUTRAL stance on the sector, with BUYS on ABMB, HLFG and BIMB. | |
| |
| | | | |
|
| | MACRO RESEARCH | | | | | | Official 2018 growth forecast raised
by Suhaimi Ilias |
|
|
|
| | | | | | Key takeaway from BNM's Annual Report 2017 is the upward revision in official 2018 real GDP growth forecast to 5.5%-6.0% from 5.0%-5.5% made in Oct 2017 (2017: 5.9%). No change in our 2018 real GDP growth forecast of 5.3%, pending the release of 1Q 2018 real GDP scheduled on 17 May 2018. | |
| |
| | | | |
| | | | | | Property Index: Treading within Major Support Zones
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | FBMKLCI fell 4.81pts to 1,857.87 yesterday, led by declines in GENM, SIMEPLT, and AMBANK. Sentiment was affected by renewed concerns of a trade war. Broader market was negative with losers outpacing gainers by 651 to 251. A total of 2.08b shares worth MYR1.81b changed hands. Markets will likely stay volatile today after US stocks ended lower. Technology stocks could take the brunt of the selling, mirroring the performance of Amazon. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
U.S: Reached agreement with South Korea on a revised trade pact that includes a side deal aimed at deterring competitive currency devaluation by Seoul and provides relief from U.S. tariffs on steel, senior Trump administration officials said. South Korea's steel exports to the U.S. will fall by about 30%, but the Asian country is still subject to a 10% aluminium tariff. The deal includes provisions outlined by South Korean officials, including a 20-year extension of the 25% U.S. tariff on pickup trucks and a doubling of the Korean import cap on autos that meet U.S. specifications to 50,000 per manufacturer per year. (Source: CNBC.com)
U.S: Economic growth slowed less than previously estimated in 4Q 2017. GDP expanded at a 2.9% annual rate in the final three months of 2017, up from the previously reported 2.5%. The biggest gain in consumer spending in three years partially offset the drag from a surge in imports. The upward revision to the fourth-quarter growth estimate also reflected less inventory reduction than previously reported. The government also reported that after-tax corporate profits increased at a 1.7% rate in the fourth quarter after rising at a 5.7% pace in the third quarter. (Source: CNBC.com)
Crude Oil: Posts longest slide in a month as U.S. supplies expand. Oil fell for a third day, the longest losing streak in almost a month, as U.S. crude stockpiles resumed their expansion. Before this week, oil had recovered from February's losses after U.S. President Donald Trump named hawkish officials to his government, signalling the nation may pursue a more hard-line approach toward OPEC member Iran. Still, fears remain that surging American shale production could thwart efforts by the Organization of the Petroleum Exporting Countries to reduce a global oversupply. The stockpile increase was the fourth in five weeks. Inventories at the Cushing, Oklahoma, storage hub jumped 1.8 million barrels, the most since a year ago. Meanwhile gasoline supplies fell 3.47 million barrels, according to the EIA. Brent for May settlement closed at USD69.53/bbl. (Source: Bloomberg) | |
| | | | | :
Oil & Gas: Petronas, Saudi Aramco form two JVs for Rapid project. Petronas and the Saudi Aramco announced yesterday the formation of two JVs for the refinery and petrochemical integrated development (Rapid) project. The JVs will allow the parties equal ownership and participation in the operations of the refinery, cracker and selected petrochemical facilities in Rapid, which is part of the Pengerang Integrated Complex in Johor. Under the collaboration, Saudi Aramco will supply 50% of the refinery's crude feedstock requirements with the option of increasing it to 70%. Meanwhile, natural gas, power and other utilities will be supplied by Petronas and its affiliates. (Source: The Edge Financial Daily)
DKLS Industries: Bags MYR102m water transfer scheme contract from govt. Its wholly-owned unit DKLS Construction S/B (DCSB) accepted the letter of award for the two-year contract from the agriculture and agro-based industry ministry yesterday to be the contractor for Projek Skim Pemindahan Air Jeniang Kedah (Fasa 1) at Ampang Jajar and Muka Sauk, Sungai Muda, in the Sik district. This award is subject to the execution of a definitive contract between the ministry and DCSB in due course. The contract runs from May 14, 2018 to May 13, 2020. (Source: The Edge Financial Daily)
SP Setia: Slapped with second round of tax and penalties. The Inland Revenue Board (IRB) has slapped SP Setia with an additional income tax and penalty for a second time, this time totalling MYR32.54m. It was served with notices of additional assessment for the years of assessment 2009 to 2015 for an additional income tax of MYR22.44m and a penalty of MYR10.1m. The notices were served as the IRB disallowed the interest expenses deducted by SP Setia over the years of assessment 2011 to 2015. IRB also disallowed the common expenses deducted by SP Setia in the years of assessment 2009 to 2015. (Source: The Sun Daily)
Titijaya Land: Buys 99% stake in Ampang land owner. Titijaya Land is buying a 99% stake in BJ Properties S/B, which owns 6.8 acres of leasehold land in Ampang that it plans to develop into a MYR1.5b gross development value project. The land is expected to be used as mixed development with a focus on the residential component, complemented by some commercial elements. Titijaya's wholly owned subsidiary Tulus Lagenda S/B will pay up to MYR9.9m for the stake. Titijaya intends to fund the proposed subscription via internally generated funds and/or bank borrowings (Source: The Sun Daily)
PUC: PUC, Doctor2U app developer to jointly promote blockchain tech for healthcare sector. PUC is looking to collaborate with Ali Health S/B to jointly promote blockchain technology and other related solutions to the healthcare industry. Its wholly owned subsidiary PUC (Malaysia) S/B has signed a MoU with Ali Health to; build an information sharing platform among medical institutions, regulators and insurance institutions; as well as provide safe and basic data for medical institutions for purposes of internal performance evaluation, data regulatory decisions, big data analysis and other applications. The duration of the MoU is 12 months or until the execution of the definitive collaboration agreement, whichever comes first. (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.