[Maybank Kim Eng] Today's Research - Malaysia

13 Oct 2015, Tuesday

g Company Research - Lingkaran Trans Kota: Neutral on toll rate hikes | Li Shin Chai g Sector Research - Regional Plantations: All-time high stockpile | Chee Ting Ong g Macro Research - Malaysia: Industrial Production, August 2015 - Slower and uneven growth | Suhaimi Ilias - Malaysia: Technicals - Index may test 1,717 and higher | Lee Cheng Hooi - Malaysia: Other News - | Malaysia Research Team

MY: Lingkaran Trans Kota (LTK MK) Share Price: MYR5.10 Target Price: MYR4.90 Recommendation: Hold Li Shin Chai (603) 2297 8684 lishin.c@maybank-ib.com Rating Change: Neutral on toll rate hikes FYE Mar (MYR m) FY14A FY15A FY16E FY17E Revenue 373.9 380.7 422.1 555.5 EBITDA 316.7 321.6 355.8 481.1 Core net profit 134.1 137.9 173.3 260.0 Core EPS (sen) 26.1 26.8 33.6 50.5 Core EPS growth (%) 1.6 2.6 25.7 50.0 Net DPS (sen) 17.0 20.0 20.0 20.0 Core P/E (x) 19.5 19.1 15.2 10.1 P/BV (x) 5.2 4.9 4.3 3.4 Net dividend yield (%) 3.3 3.9 3.9 3.9 ROAE (%) 28.5 26.6 30.3 37.9 ROAA (%) 5.9 6.2 7.6 10.7 EV/EBITDA (x) 9.5 9.0 9.9 6.9 Net debt/equity (%) 207.2 177.5 147.2 89.8 §  Increase in toll rates charged to users of LDP and SPRINT not significantly affecting our earnings forecasts and TP. §  Cash flows to expedite versus government’s compensation as half-yearly final payments were made after traffic audit. §  Share price has exceeded our TP. HOLD (from BUY) with an unchanged MYR4.90 TP; potentially higher dividends ahead. RN: Regional Plantations Recommendation: Neutral Chee Ting Ong (603) 2297 8678 ct.ong@maybank-ib.com Sector Note: All-time high stockpile §  Malaysia’s stockpile, at a record high of 2.63m MT, will cap the near term upside of CPO price. §  Stockpile may hit 2.7m MT by end Oct/Nov, necessitating CPO price to stay low to encourage exports. §  The strengthening El Nino provides hope of better CPO price in 2016. NEUTRAL for now. Top BUYs are BAL, GENP, SOP. SELL AALI. MY: Industrial Production, August 2015 Suhaimi Ilias (603) 2297 8682 suhaimi_ilias@maybank-ib.com Zamros Dzulkafli (603) 2082 6818 zamros.d@maybank-ib.com Economics Research: Slower and uneven growth §  Industrial output growth slowed §  Amid uneven component growth i.e. sustained manufacturing, decline in mining, surge in electricity §  No change in our view of moderating GDP growth in 3Q 2015 / 2H 2015 MY: Technicals Lee Cheng Hooi (603) 2297 8694 chenghooi.lee@maybank-ib.com Technical Research: Index may test 1,717 and higher §  COASTAL - On a strong upward Wave 3 and 5 move. §  FBMKLCI – Index may re-test 1,717 and higher. §  Supports of 1,675 and 1,709 will be areas to buy. §  Resistances of 1,717 and 1,744 may cap rebounds. MY: Other News Malaysia Research Team Economics Research: Outside Malaysia —   E.U: To assess Greece’s debt burden, servicing costs after review —   Thailand: Cabinet considers property measures Malaysia —   Parkson Holdings: Shareholders shoot down Parkson's plans —   Glomac: PR1MA to buy Glomac unit's land in Ulu Langat —   Metrod Holdings: Buys 5-star Goa hotel for MYR331m