[Maybank Kim Eng] Today's Research - Malaysia

04 Nov 2015, Wednesday g Company Research - Petronas Chemicals : Strong volume buffers MYR impact | Mohshin Aziz - Malaysia Marine & Heavy Engineering: Malikai’s provisions skewed 3Q15 | Thong Jung Liaw g Macro Research - Malaysia: Technicals - Index support emerged at 1,658.98 | Lee Cheng Hooi - Malaysia: Other News - | Malaysia Research Team MY: Petronas Chemicals (PCHEM MK) Share Price: MYR6.50 Target Price: MYR6.60 Recommendation: Hold Mohshin Aziz (603) 2297 8692 mohshin.aziz@maybank-ib.com Results Review: Strong volume buffers MYR impact FYE Dec (MYR m) FY13A FY14A FY15E FY16E Revenue 15,203.0 14,636.9 14,447.1 15,662.1 EBITDA 5,411.0 4,574.9 4,590.7 5,496.8 Core net profit 3,156.0 2,723.6 2,749.0 3,297.4 Core EPS (sen) 39.5 34.0 34.4 41.2 Core EPS growth (%) (13.8) (13.7) 0.9 20.0 Net DPS (sen) 20.0 20.0 17.2 20.6 Core P/E (x) 16.5 19.1 18.9 15.8 P/BV (x) 2.4 2.2 2.1 2.0 Net dividend yield (%) 3.1 3.1 2.6 3.2 ROAE (%) 15.0 12.1 11.4 12.8 ROAA (%) 11.8 9.7 9.4 10.6 EV/EBITDA (x) 8.7 7.8 9.4 7.5 Net debt/equity (%) net cash net cash net cash net cash §  3Q15 was within our expectation, but ahead of consensus. §  Stellar factory utilisation rate buoys bottom-line. §  Maintain HOLD with unchanged TP, pending analyst briefing later today. MY: Malaysia Marine & Heavy Engineering (MMHE MK) Share Price: MYR1.10 Target Price: MYR1.32 Recommendation: Hold Thong Jung Liaw (603) 2297 8688 tjliaw@maybank-ib.com Ivan Yap (603) 2297 8612 ivan.yap@maybank-ib.com Results Review: Malikai’s provisions skewed 3Q15 FYE Dec (MYR m) FY13A FY14A FY15E FY16E Revenue 2,884.5 2,700.5 2,077.8 1,815.0 EBITDA 261.1 248.6 179.7 163.5 Core net profit 236.5 173.1 138.8 119.1 Core EPS (sen) 14.8 10.8 8.7 7.4 Core EPS growth (%) (14.3) (26.8) (19.8) (14.2) Net DPS (sen) 5.0 0.0 0.0 0.0 Core P/E (x) 7.4 10.2 12.7 14.8 P/BV (x) 0.7 0.7 0.6 0.6 Net dividend yield (%) 4.5 0.0 0.0 0.0 ROAE (%) 9.3 6.6 5.1 4.2 ROAA (%) 4.8 3.7 3.2 2.8 EV/EBITDA (x) 20.2 10.2 7.2 7.1 Net debt/equity (%) net cash net cash net cash net cash §  9M15 core earnings in line, but significant provisions on Malikai TLP project skewed headline earnings. §  Order replenishment remains a concern; results of most of the major tenders are only out in 2016. §  Reiterate HOLD and MYR1.32 TP (1.5x EV/ order backlog). MY: Technicals Lee Cheng Hooi (603) 2297 8694 chenghooi.lee@maybank-ib.com Technical Research: Index support emerged at 1,658.98 §  JOHOTIN - On a very strong upward Wave 3 and 5 move. §  FBMKLCI – Index found support at 1,658.98 recently. §  Supports of 1,657 and 1,677 may be areas to buy. §  Resistances of 1,680 and 1,700 may cap its rebounds. MY: Other News Malaysia Research Team Economics Research: Outside Malaysia —  E.U: Draghi says ECB ready to act to maintain monetary accommodation —  E.U: 30,000 banking jobs to go as Standard Chartered joins in cuts —  Spain: Jobless claims are rising again —  Australia: The Reserve Bank of Australia left the benchmark at a record-low 2% Malaysia —  Property: Johor’s first halal biotech park —  MRCB: Degearing, revamp plans soon —  Telekom: In JV to provide ICT services in Medini Iskandar —  SP Setia: Shortlisted to bid for redevelopment of Royal Adelaide Hospital site Disclaimer This email and its attachment(s) are confidential and are intended solely for the use of the individual to whom it is addressed. Any views or opinions expressed are solely those of the author and do not necessarily represent those of Maybank Kim Eng or any of its affiliates. Intended recipients of this email are prohibited from disseminating, forwarding, printing and/or copying its contents. If you are not the intended recipient of this email, you are strictly prohibited to take any action based upon them, which also includes dissemination, forwarding, printing and copying of its contents. Maybank Kim Eng Research sent this e-mail to you because your Notification Preferences indicate that you want to receive information about our daily research reports. If you wish to read Disclaimer in details, please click HERE. To unsubscribe or change preference settings, please click here to contact your representative.