[Maybank Kim Eng] Today's Research - Malaysia

04 Sep 2015, Friday

g Company Research - Icon Offshore: In turbulent waters | Thong Jung Liaw g Macro Research - Malaysia: Malaysia Strategy - Foreign shareholding revisited | Chew Hann Wong - Malaysia: Technicals - The index inched above 1,600 | Lee Cheng Hooi - Malaysia: Other News - | Malaysia Research Team

MY: Icon Offshore (ICON MK) Share Price: MYR0.32 Target Price: MYR0.25 Recommendation: Sell Thong Jung Liaw (603) 2297 8688 tjliaw@maybank-ib.com Company Update: In turbulent waters FYE Dec (MYR m) FY13A FY14A FY15E FY16E Revenue 334.9 318.9 275.9 296.1 EBITDA 143.4 174.7 122.5 126.5 Core net profit 113.6 59.4 8.3 27.6 Core EPS (sen) 9.7 5.0 0.7 2.3 Core EPS growth (%) 201.9 (47.7) (86.0) 232.9 Net DPS (sen) 0.0 0.0 0.0 0.0 Core P/E (x) 3.3 6.3 45.4 13.6 P/BV (x) 1.0 0.3 0.3 0.3 Net dividend yield (%) 0.0 0.0 0.0 0.0 ROAE (%) 59.9 8.1 0.8 2.5 ROAA (%) 14.4 3.5 0.5 1.5 EV/EBITDA (x) na 8.4 8.3 8.1 Net debt/equity (%) 278.3 55.0 59.2 58.5 §  Falling DCRs, low utilisation and delay of new OSV deliveries are testament to the current challenging period. §  Share price has fallen by 58% YTD but no reason to re-rate yet. Conserving cashflow is critical to operations in 2015-16. §  Maintain SELL and MYR0.25 TP (9x 2016 PER). MY: Malaysia Strategy Chew Hann Wong (603) 2297 8686 wchewh@maybank-ib.com Strategy Research: Foreign shareholding revisited §  Foreign net sell resumes after two days of net buy; estimated net sell YTD is MYR16.3b. §  Market foreign shareholding is down 1.1ppts in the first 7M; individual stocks’ foreign holdings down by up to 8.8ppts. §  Foreign holdings in a few stocks are already in new troughs; we have two BUYs in this ‘list’. MY: Technicals Lee Cheng Hooi (603) 2297 8694 chenghooi.lee@maybank-ib.com Technical Research: The index inched above 1,600 §  HOHUP - On a very strong downward Wave 3 and 5 move. §  FBMKLCI – Inched above 1,600 ahead of the weekend. §  Supports of 1,583 and 1,602 may be zones to nibble. §  Resistances of 1,605 and 1,660 will cap rebounds. MY: Other News Malaysia Research Team Economics Research: Outside Malaysia —   U.S: Growth at service providers near strongest in decade —   E.U: Draghi unveils revamped QE program as ECB downgrades outlook —   E.U: Euro-area recovery gathers speed with only France as laggard —   U.K: Services grew at the weakest pace in more than two years in August —   Australia: Retail sales unexpectedly fell in July Malaysia —   Construction: LRT 3 PDP to be named next week —   Aviation: AirAsia, MAHB boards to meet to discuss airline’s lawsuit —   Muhibbah: JV secures MYR950m Petronas contract