STOCK FOCUS OF THE DAY
Denko Industrial Corp: New products to boost FY19 Buy
We maintain our BUY recommendation on Denko Industrial Corporation (Denko) with unchanged forecasts and fair value of RM1.76/share, based on a CY19F PE of 13x.
Denko’s FY18 results came in line with our expectations and consensus estimate at RM93mil, representing a YoY increase of 17%. The improvement was fuelled by a 27% expansion in revenue, which was driven mainly by stronger box-build orders. However, higher taxation has resulted in a smaller increase in earnings. The effective tax rate was 26% in FY18, vs. 18% in FY17 as some tax expenses in FY17 were deferred. We expect the tax rate to moderate to the normal statutory corporate tax rate of 24%.
Others :
Alliance Bank: Yielding benefits from higher risk adjusted return loans Buy
Bumi Armada: Belated final FPSO acceptances still EPS-positive Buy
RHB Bank: Stronger revenue growth with lower provisions Buy
Titijaya Land: 9MFY18 net profit grows 4% YoY Buy
CSC Steel: 1QFY18 net profit declined 36% YoY Hold
DRB-Hicom: Sees small core net profit in 4Q Hold
Sime Darby Plantation: Indonesia and PNG units hit by floods Hold
AMMB: Higher OPEX and provisions in FY18 Unrated
RETAIL RESEARCH
Stocks On Radar: Serba Dinamik, Dialog Group, Pentamaster, TA Enterprise
ECONOMIC HIGHLIGHT
US: The return of tariff and volatility
NEWS HIGHLIGHTS
Local bourse: YTL, AMMB, Astro bumped out of FBM KLCI
UEM Sunrise: To reconsider plans for Gerbang Nusajaya
Mah Sing: Earnings at RM64m in Q1
Scomi: Losses widen to RM208mil
DISCLAIMER:
The information and opinions in this report are 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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