| | 
| |
| |
| | | SECTOR RESEARCH | | | | | | 2017 results – growth at last | NEUTRAL
by Desmond Ch'ng |
|
|
|
| | | | | | 2017 was a good year for the banks and the positive core net earnings momentum is expected to carry into 2018, albeit at a slower pace of 7.8% versus 14.9% in 2017, by our estimates. Upside surprises, if any, could emanate from (i) faster-than-expected loan growth, (ii) NIM surprise from more rate hikes, and/or (iii) a more subdued credit cost impact from MFRS9. We maintain our Neutral stance on the banking sector, with BUYs on Alliance Bank, BIMB and HLFG. | |
| |
| | | | |
|
| | MACRO RESEARCH | | | | | | Strong start to 2018
by Suhaimi Ilias |
|
|
|
| | | | | | Export and import growth accelerated in Jan 2018 to +17.9% YoY (Dec 2017: +4.7% YoY) and +11.6% YoY (Dec 2017: +7.9% YoY), boosted by "front-loading" ahead of Lunar New Year holidays in Feb 2018 and sustained global economic expansion in early-2018. There is little impact of US recent "protectionist" trade policy that target products where Malaysia is not a major exporter (steel, aluminium) or is excluded (solar panels – according to MITI). | |
| |
| | | | |
| | | | | | Brent Crude Oil: Correction Is Not Over Yet
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | FBMKLCI plunged 13.45pts to 1,842.62 yesterday, led by declines in PMETAL, HLBANK and TM. Trump's tariff plan and a more hawkish tone from the Federal Reserve caused the selldown. Broader market was also bearish with losers overwhelmingly outpacing gainers by 963 to 172. A total of 2.62b shares worth MYR2.40b changed hands. As Wall Street ended higher overnight, FBMKLCI is likely to snap its 2-day decline. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
U.S. Service industries grow near fastest pace in a decade in February, signaling the economy is on track for steady growth this quarter, according to a survey from the Institute for Supply Management. Non-manufacturing index eased to 59.5 from 59.9; readings above 50 indicate growth Measure of business activity rose to almost one-year high of 62.8; gauge of new orders jumped to 64.8, highest since 2005, from 62.7. Employment index fell to 55 from December's 61.6 reading that was the highest in data back to 1997. (Source: Bloomberg)
U.S: Offers Canada-Mexico tariff exclusion to ease path on NAFTA. U.S. Trade Representative Robert Lighthizer said the Trump administration has offered to exclude Canada and Mexico from tariffs on steel and aluminum as an incentive to reach a deal on a new Nafta before a string of elections make it difficult. "The president's view was that it makes sense that if we get a successful agreement, to have them be excluded," Lighthizer told reporters in Mexico City following the seventh round of talks to renegotiate the North American Free Trade Agreement. "It's an incentive to get a deal." (Source: Bloomberg)
E.U: The Euro-Area economy may have lost a little more momentum than initially estimated in February, adding to signs that the pace of growth may be moving past its peak. IHS Markit's composite Purchasing Managers Index slipped to 57.1 from 58.8 in January, it said. That's the weakest in four months and below the flash estimate of 57.5. The index for services activity was also revised lower. (Source: Bloomberg)
U.K: Services activity grew more than expected in February, supporting economic growth and keeping alive the prospect of an interest-rate increase within months. IHS Markit's Purchasing Managers Index for the biggest part of the economy jumped to 54.5 -- a four-month high -- from 53 in January. The report showed that new business picked up for a second month and the backlogs of business increased, which bodes well for the coming months. While Markit's manufacturing index for February declined, construction performed better, and it said the surveys show a "steady pace" of economic expansion is being maintained. It estimates growth of 0.4% this quarter, matching the rate of the final three months of 2017. (Source: Bloomberg)
China: Turns fiscal screws. China stepped up its push to curb financial risk, cutting its budget deficit target for the first time since 2012 and setting a growth goal of around 6.5% that omitted last year's aim for a faster pace if possible. The deficit target -- released as Premier Li Keqiang delivered his annual report to the National People's Congress -- was lowered to 2.6% of GDP from 3% in the past two years. The 6.5% goal is consistent with President Xi Jinping's promise to deliver a "moderately prosperous" society by 2020. (Source: Bloomberg) | |
| | | | | :
LBS Bina: In HoA to buy stake in NWP at a discount, to jointly develop China project. LBS Bina is continuing its acquisition trail with the proposed purchase of a 73.7% stake in timber products maker NWP Holdings for MYR93.5m or 8.5 sen per share. The 8.5 sen offer price represents a huge discount of 29.17% to NWP's five-day volume weighted average market price of 12 sen. It is also a 14% discount to NWP's adjusted net tangible assets of 9.88 sen per share as at Nov 30, 2017 after taking potential impairment/provision of doubtful debts of MYR10.6m or 2.7 sen per share into consideration. Both companies will jointly undertake a 264-acre mixed commercial development project in Zhuhai, Guangdong Province, China. (Source: The Sun Daily)
Ecoworld: To issue bonds up to MYR250m. Eco World Development Group will issue bonds of up to MYR250m to raise proceeds for Eco Botanica S/B's project in Iskandar Malaysia. The issue will be used to partly finance development costs which include infrastructure, working capital requirements and development rights consideration. The medium-term note (MTN) programme comprises unrated MTNs of up to MYR100m with a tenure of up to five years, and unrated MTNs of up to MYR150m with a tenure of up to seven years, to be guaranteed by Danajamin Nasional. MIDF Amanah Investment Bank has been appointed as the principal adviser, lead arranger and lead manager for the MTN programme. (Source: The Sun Daily)
Globetronics: Plans onw-to-two share split, followed by bonus issue. Globetronics has proposed a one-to-two share split, followed by a bonus issue on the basis of one bonus share for every six share split Globetronics shares. Globetronics' issued share capital is MYR155.75m comprising 285.6m shares. The proposals will increase Globetronics' issued share capital between MYR179.55m, with 666.3m sahres and MYR205.99m, comprising 676.56m shares, subject to whether its outstanding employees' share option scheme options are implemented and exercised. (Source: The Edge Financial Daily)
Press Metal: Unfazed by US plans for aluminium import tariffs. Press Metal Aluminium Holdings is unperturbed by the US mulling restrictions on steel and aluminium imports, citing small exposure to the US market. Press Metal has been monitoring developments on the potential tariff on aluminium which may be implemented by the US. Press Metal exports a very minimal amount of its primary aluminium products to the US. Including extrusion products, its exposure to the US market is less than 1% of total revenue. (Source: The Sun Daily)
Prestar: To buy land in Kg Baru Subang for business expansion. Prestar Resources is acquiring leasehold land measuring 8,304 square metres in Kampung Baru Subang, Selangor, from Skyhub Technologies S/B for MYR19.25mi for business expansion. The land houses a three-storey office building and two units of single-storey factories. The purchase will be satisfied via internally generated funds. (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.