[Maybank Kim Eng] Today's Research - Malaysia

22 Oct 2015, Thursday

g Company Research - CIMB Group Holdings: Hard to be excited | Desmond Ch'ng - Malaysia Airports: 3Q15F: More of the same | Mohshin Aziz g Sector Research - Singapore Gloves Sector: Privatisation catalyst | OVERWEIGHT | John Cheong g Macro Research - Malaysia: Technicals - Some range trading may prevail | Lee Cheng Hooi - Malaysia: Other News - | Malaysia Research Team

MY: CIMB Group Holdings (CIMB MK) Share Price: MYR4.97 Target Price: MYR5.60 Recommendation: Hold Desmond Ch'ng (603) 2297 8680 desmond.chng@maybank-ib.com Company Update: Hard to be excited FYE Dec (MYR m) FY13A FY14A FY15E FY16E Operating income 14,671.8 14,145.9 14,801.9 15,477.5 Pre-provision profit 6,214.0 5,854.0 5,623.0 7,118.6 Core net profit 4,188.2 3,159.0 3,386.1 4,198.8 Core FDEPS (MYR) 0.60 0.37 0.34 0.50 Core FDEPS growth(%) 2.6 (37.5) (9.4) 46.8 Net DPS (MYR) 0.23 0.15 0.16 0.20 Core FD P/E (x) 8.3 13.3 14.6 10.0 P/BV (x) 1.2 1.1 1.1 1.0 Net dividend yield (%) 4.7 3.0 3.2 4.0 Book value (MYR) 4.02 4.53 4.64 4.94 ROAE (%) 14.3 9.3 8.9 10.5 ROAA (%) 1.2 0.8 0.8 0.9 §  2H15 earnings unlikely to excite as provision levels could remain elevated, particularly at CIMB Niaga. §  Capital raising not urgent but cannot be ruled out in light of the challenging operating environment. §  HOLD maintained with an unchanged TP of MYR5.60 on FY16 P/BV peg of 1.1x (ROE: 10.5%) pending 3Q15 results release. MY: Malaysia Airports (MAHB MK) Share Price: MYR5.49 Target Price: MYR5.45 Recommendation: Hold Mohshin Aziz (603) 2297 8692 mohshin.aziz@maybank-ib.com Results Preview: 3Q15F: More of the same FYE Dec (MYR m) FY13A FY14A FY15E FY16E Revenue 4,134.0 3,343.7 3,918.1 4,298.3 EBITDA 899.6 815.0 1,980.5 1,828.0 Core net profit 361.8 148.9 (11.3) 152.7 Core EPS (sen) 29.4 11.1 (0.7) 10.0 Core EPS growth (%) (20.2) (62.3) nm nm Net DPS (sen) 7.3 2.8 0.0 2.5 Core P/E (x) 18.7 49.6 (738.3) 54.7 P/BV (x) 1.1 1.0 0.9 0.9 Net dividend yield (%) 1.3 0.5 0.0 0.5 ROAE (%) 5.7 2.2 (0.1) 1.7 ROAA (%) 3.2 0.9 (0.1) 0.7 EV/EBITDA (x) 15.5 15.9 6.6 7.2 Net debt/equity (%) 55.7 57.7 51.1 51.8 §  3Q15 operating statistics below expectations. §  Unknown is further KLIA2 repair cost, still without a CFO. §  Maintain earnings forecasts and HOLD call with an unchanged target price of MYR5.45, pending actual results. SG: Singapore Gloves Sector Recommendation: Overweight John Cheong (65) 6231 5845 johncheong@maybank-ke.com.sg Sector Note: Privatisation catalyst | OVERWEIGHT §  Top Glove’s M&A ambitions and weak MYR triggered a share price rally among Malaysia-listed glovemakers. §  Singapore-listed glovemakers Riverstone and UG Healthcare are laggards in the rally, possibly due to slower newsflow and investors being too preoccupied with the penny stocks rally. §  Maintain BUY on Riverstone and UG Healthcare. Both stocks are trading at deep discounts to peers (20% for Riverstone and 50% for UG in FY16). Another round of multiple expansions is possible if the rally continues. MY: Technicals Lee Cheng Hooi (603) 2297 8694 chenghooi.lee@maybank-ib.com Technical Research: Some range trading may prevail §  CANONE - On a very strong upward Wave 3 and 5 move. §  FBMKLCI – Some range trading may prevail. §  Supports of 1,690 and 1,707 may be areas to nibble. §  Resistances of 1,710 and 1,738 will cap any rebound. MY: Other News Malaysia Research Team Economics Research: Outside Malaysia —   Canada: Poloz dials back optimism even as Trudeau plans fiscal stimulus —   Brazil: Holds key rate as stagflation constrains central bank —   U.K: Posted its smallest budget deficit for a September in eight years —   Japan: Exports grew at the slowest pace in more than a year in September —   Japan: Foreign tourists spent a record JPY 1t (USD 8.3b) in the three months through September Malaysia —   Automotive: Mercedes-Benz commercial vehicle sales up 15% —   TMC Life Sciences: Mulls collaboration with Thomsom Medical —   Felda Global Ventures: Hopes govt will implement B10 biodiesel mandate —   Zelan: ICOP bag MYR97m job —   Alam Maritim: Bags MYR53.5m deal