[Maybank Kim Eng] Today's Research - Malaysia

23 Oct 2015, Friday

g Company Research - Public Bank: 9M15 results within expectations | Desmond Ch'ng - Sunway: Construction leads, property falls short | Wei Sum Wong g Macro Research - Malaysia: External Reserves, 15 October 2015 - Stabilising… | Suhaimi Ilias - Malaysia: Technicals - Budget Day selling may emerge | Lee Cheng Hooi - Malaysia: Other News - | Malaysia Research Team

MY: Public Bank (PBK MK) Share Price: MYR18.64 Target Price: MYR19.60 Recommendation: Hold Desmond Ch'ng (603) 2297 8680 desmond.chng@maybank-ib.com Results Review: 9M15 results within expectations FYE Dec (MYR m) FY13A FY14A FY15E FY16E Operating income 8,158.3 8,673.4 9,265.1 9,782.6 Pre-provision profit 5,654.7 6,067.5 6,489.6 6,885.4 Core net profit 4,064.7 4,518.8 4,805.9 5,069.3 Core EPS (MYR) 1.12 1.17 1.24 1.31 Core EPS growth (%) 6.2 4.1 6.4 5.5 Net DPS (MYR) 0.52 0.54 0.57 0.61 Core P/E (x) 16.6 15.9 15.0 14.2 P/BV (x) 3.3 2.6 2.5 2.3 Net dividend yield (%) 2.8 2.9 3.1 3.3 Book value (MYR) 5.65 7.26 7.50 8.27 ROAE (%) 21.1 18.7 16.9 16.6 ROAA (%) 1.4 1.4 1.3 1.3 §  9M15 net profit rose 9% YoY to MYR3.57b – within our expectation and consensus. §  Key guidance still intact - NIM compression of 12bps for FY15, domestic loan growth target of 9-10%. §  HOLD maintained with a marginally higher TP of MYR19.60 (+10sen) on 2.4x P/BV for FY16 ROE of 16.6%. MY: Sunway (SWB MK) Share Price: MYR3.04 Target Price: MYR3.31 Recommendation: Hold Wei Sum Wong (603) 2297 8679 weisum@maybank-ib.com Company Update: Construction leads, property falls short FYE Dec (MYR m) FY13A FY14A FY15E FY16E Revenue 4,733.7 4,841.9 5,494.1 6,177.1 EBITDA 563.1 504.2 718.4 742.3 Core net profit 482.7 591.7 522.3 520.2 Core FDEPS (sen) 26.9 32.5 28.7 25.8 Core FDEPS growth(%) (0.8) 20.7 (11.7) (9.9) Net DPS (sen) 10.0 11.0 35.1 8.6 Core FD P/E (x) 11.3 9.4 10.6 11.8 P/BV (x) 1.0 0.9 0.9 0.8 Net dividend yield (%) 3.3 3.6 11.5 2.8 ROAE (%) 10.9 10.5 8.8 8.1 ROAA (%) 4.9 4.9 4.0 3.7 EV/EBITDA (x) 10.4 15.6 11.1 11.3 Net debt/equity (%) 23.9 30.4 36.7 32.2 §  Construction job wins have surpassed our expectation but property sales remain weak. §  Management cuts 2015 property sales target by 38%. §  Lower our FY15-17 earnings forecasts by 2%-10%, RNAV-TP to MYR3.31 (-17sen) on unchanged 0.59x P/RNAV peg. HOLD. MY: External Reserves, 15 October 2015 Suhaimi Ilias (603) 2297 8682 suhaimi_ilias@maybank-ib.com Zamros Dzulkafli (603) 2082 6818 zamros.d@maybank-ib.com Economics Research: Stabilising… §  External reserves rose to USD94.1b (MYR418.0b) at mid-Oct from the low of USD93.3b (MYR415.1b) at end-Sep. §  External reserves’ import cover and ratio to short-term external debt improved to 8.8 months and 1.2 times form recent lows of 7.3 months and 1.0 times. §  Amid indication of net foreign buying in equity market and foreign inflows into bond market. MY: Technicals Lee Cheng Hooi (603) 2297 8694 chenghooi.lee@maybank-ib.com Technical Research: Budget Day selling may emerge §  SAM - On a very strong upward Wave 3 and 5 move. §  FBMKLCI – Budget Day selling today may emerge. §  Supports of 1,675 and 1,700 may be areas to nibble. §  Resistances of 1,705 and 1,727 will cap any rebound. MY: Other News Malaysia Research Team Economics Research: Outside Malaysia —   U.S: Existing home sales rise to second-highest level since 2007 —   E.U: EUR drops as Draghi gives investors the QE hints they wanted —   Spain: Unemployment rate falls to lowest level since 2011 —   S. Korea: Economy rebounds from MERS outbreak as shoppers return Malaysia —   IPO: Red Sena on track for listing by Dec 15 —   Infrastructure: MRT Corp gets final nod to start Line 2 construction —   Water: Air Selangor to buy Abass from KPS for MYR78m —   Power: Third PPA extension will be granted, says Ongkili —   Brahim's Holdings: A taste for Brahim's