[Maybank Kim Eng] Today's Research - Malaysia

02 Oct 2015, Friday

g Company Research - IOI Corporation: Don’t party so soon | Chee Ting Ong - Media Prima: To acquire two radio stations | Samuel Yin Shao Yang g Macro Research - Malaysia: Technicals - An emerging index uptrend | Lee Cheng Hooi - Malaysia: Other News - | Malaysia Research Team

MY: IOI Corporation (IOI MK) Share Price: MYR4.40 Target Price: MYR3.97 Recommendation: Hold Chee Ting Ong (603) 2297 8678 ct.ong@maybank-ib.com Results Preview: Don’t party so soon FYE Jun (MYR m) FY14A FY15A FY16E FY17E Revenue 12,664.1 11,621.0 11,577.3 12,211.1 EBITDA 2,376.3 847.4 1,579.3 1,762.0 Core net profit 1,549.4 860.1 927.6 1,069.3 Core FDEPS (sen) 24.0 13.3 14.4 16.6 Core FDEPS growth(%) (6.9) (44.6) 7.8 15.3 Net DPS (sen) 20.0 9.0 7.2 8.3 Core FD P/E (x) 18.3 33.0 30.6 26.6 P/BV (x) 4.7 5.6 5.1 4.7 Net dividend yield (%) 4.5 2.0 1.6 1.9 ROAE (%) 15.7 15.5 17.5 18.5 ROAA (%) 7.9 6.0 6.9 7.7 EV/EBITDA (x) 15.8 36.9 21.0 18.7 Net debt/equity (%) 58.6 96.1 82.5 70.9 §  Expect IOI Corp to post MYR440m in net loss this quarter. §  Recent CPO price rally has run its course for now. §  HOLD with unchanged TP of MYR3.97 on 24x FY16 PER. MY: Media Prima (MPR MK) Share Price: MYR1.26 Target Price: MYR1.45 Recommendation: Buy Samuel Yin Shao Yang (603) 2297 8916 samuel.y@maybank-ib.com Jade Tam (603) 2297 8687 jade.tam@maybank-ib.com Acquisition: To acquire two radio stations FYE Dec (MYR m) FY13A FY14A FY15E FY16E Revenue 1,722.9 1,507.0 1,378.0 1,417.4 EBITDA 408.2 310.8 261.0 266.1 Core net profit 214.2 141.6 100.3 106.9 Core FDEPS (sen) 19.2 12.6 9.0 9.6 Core FDEPS growth(%) 4.7 (34.2) (28.7) 6.6 Net DPS (sen) 14.0 11.0 8.0 8.0 Core FD P/E (x) 6.6 10.0 14.0 13.1 P/BV (x) 0.8 0.9 0.9 0.9 Net dividend yield (%) 11.1 8.7 6.3 6.3 ROAE (%) 13.4 8.7 6.3 6.6 ROAA (%) 8.1 5.6 4.2 4.6 EV/EBITDA (x) 6.8 6.0 4.9 4.7 Net debt/equity (%) net cash net cash net cash net cash §  MPR to acquire Ultra FM and Pi Mai FM for MYR20m cash. §  Pricing cheap but we are unsure about their viability. §  DPS unlikely to be cut though. Maintain BUY and MYR1.45 TP. MY: Technicals Lee Cheng Hooi (603) 2297 8694 chenghooi.lee@maybank-ib.com Technical Research: An emerging index uptrend §  MEDIA - On a very strong upward Wave 3 and 5 move. §  FBMKLCI – An emerging index uptrend underway. §  Supports of 1,604 and 1,633 will be areas to nibble. §  Resistances of 1,635 and 1,660 may cap rebounds. MY: Other News Malaysia Research Team Economics Research: Outside Malaysia —   U.S: Manufacturing almost stalls in September as global slowdown spreads —   E.U: Factories cut prices as oil slump seeps through economy —   Japan: Household spending bounces back with 2.9% gain in August —   Taiwan: Currency slides most since 1997 this quarter amid outflows Malaysia —   Transportation: Year-end deadline to get nod for Penang LRT deal —   Malaysia Building Society (MBSB): Gets nod for merger talks with Bank Muamalat —   Genting Malaysia: Buys Genting Alderny for GBP7.2m —   AirAsia: Subscribes to IAA's perpetual capital securities —   ManagePay: To operate retail chains' e-wallet, loyalty card programme