|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR8.03
|
|
Target
Price:
|
MYR6.50
|
|
Recommendation:
|
Sell
|
|
|
|
|
|
|
|
|
Competition
stiffens
|
|
We think the present price competition may persist for
another 6-9 months. While sequential earnings may improve on lower
costs, it will still be far from its peaked quarterly earnings. Post
our EPS cut, LMC trades at expensive 27x 2017 PER and offers dividend
yield of only 3.1% for the current year. Maintain SELL with a lower TP
of MYR6.50 (-7%) on an unchanged 22x mean PER valuation, but rolled
forward to 2017.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
2,743.1
|
2,750.8
|
2,615.1
|
2,738.2
|
|
EBITDA
|
493.5
|
509.4
|
481.9
|
563.0
|
|
Core net profit
|
256.0
|
251.0
|
209.5
|
251.3
|
|
Core EPS (sen)
|
30.1
|
29.5
|
24.7
|
29.6
|
|
Core EPS growth (%)
|
(30.2)
|
(1.9)
|
(16.5)
|
20.0
|
|
Net DPS (sen)
|
34.0
|
31.0
|
25.0
|
29.6
|
|
Core P/E (x)
|
26.7
|
27.2
|
32.6
|
27.1
|
|
P/BV (x)
|
2.2
|
2.2
|
2.2
|
2.2
|
|
Net dividend yield (%)
|
4.2
|
3.9
|
3.1
|
3.7
|
|
ROAE (%)
|
8.1
|
8.1
|
6.8
|
8.1
|
|
ROAA (%)
|
6.4
|
6.0
|
4.8
|
5.8
|
|
EV/EBITDA (x)
|
15.9
|
14.9
|
14.3
|
12.1
|
|
Net debt/equity (%)
|
net cash
|
1.0
|
2.3
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR4.43
|
|
Target
Price:
|
MYR4.15
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
4QFY16: Below
expectations
|
|
Results fell short mainly due to the weaker-than-expected
performance of the livestock division. Moving forward, we expect growth
to be mainly supported by the marine division (new capacity expansion
and positive impact of weaker MYR on export sales). As for its
livestock division, operations could gradually improve on the rebound
of egg prices. We trim FY17/18 earnings forecasts and introduce FY19
forecasts.
|
|
|
|
|
|
|
FYE Mar (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
2,707.8
|
2,852.6
|
3,031.0
|
3,201.3
|
|
EBITDA
|
340.9
|
371.6
|
408.4
|
452.7
|
|
Core net profit
|
183.1
|
192.0
|
211.1
|
235.4
|
|
Core EPS (sen)
|
14.7
|
15.4
|
16.9
|
18.9
|
|
Core EPS growth (%)
|
14.5
|
4.9
|
9.9
|
11.5
|
|
Net DPS (sen)
|
4.3
|
5.0
|
6.0
|
6.0
|
|
Core P/E (x)
|
30.2
|
28.8
|
26.2
|
23.5
|
|
P/BV (x)
|
3.9
|
3.5
|
3.2
|
2.9
|
|
Net dividend yield (%)
|
1.0
|
1.1
|
1.4
|
1.4
|
|
ROAE (%)
|
13.5
|
12.7
|
12.7
|
13.0
|
|
ROAA (%)
|
7.6
|
7.1
|
7.1
|
7.4
|
|
EV/EBITDA (x)
|
16.4
|
16.4
|
15.6
|
14.2
|
|
Net debt/equity (%)
|
39.0
|
33.4
|
39.8
|
38.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR2.34
|
|
Target
Price:
|
MYR2.54
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Challenging adex
outlook
|
|
1Q16 earnings disappointed largely due to lower print adex
from Star’s core adex categories. We cut FY16-FY18 net profit estimates
to account for weaker print adex growth. However, we ascribe a higher
market value to Star’s 53%-owned Cityneon Holdings (CITN SP; Not
Rated). As a result, our SOP-TP is raised to MYR2.54 (MYR2.38
previously); HOLD.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,013.7
|
1,019.0
|
1,034.8
|
1,076.6
|
|
EBITDA
|
242.3
|
211.2
|
185.3
|
196.7
|
|
Core net profit
|
151.5
|
131.9
|
112.4
|
124.6
|
|
Core EPS (sen)
|
20.5
|
17.9
|
15.2
|
16.9
|
|
Core EPS growth (%)
|
4.8
|
(12.9)
|
(14.8)
|
10.9
|
|
Net DPS (sen)
|
18.0
|
18.0
|
18.0
|
18.0
|
|
Core P/E (x)
|
11.4
|
13.1
|
15.4
|
13.9
|
|
P/BV (x)
|
1.5
|
1.5
|
1.5
|
1.5
|
|
Net dividend yield (%)
|
7.7
|
7.7
|
7.7
|
7.7
|
|
ROAE (%)
|
13.1
|
11.5
|
9.9
|
11.1
|
|
ROAA (%)
|
9.0
|
7.8
|
6.7
|
7.9
|
|
EV/EBITDA (x)
|
5.7
|
6.8
|
7.8
|
7.4
|
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
Samuel Yin Shao
Yang
|
|
|
|
Jade Tam
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR0.73
|
|
Target
Price:
|
MYR0.80
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
Higher DPR of
63% despite lower earnings!
|
|
4QFY3/16 core net profit fell short. Higher-than-expected
operating expenses in Greater China are believed to have contributed to
the earnings shortfall. But, full year DPS of 4.3 MYRsen (63% DPR) was
above expectations reflecting ~6% yield. We maintain our earnings
forecasts, BUY call and TP of MYR0.80 (10x CY2016 PER) pending a
briefing today.
|
|
|
|
|
|
|
FYE Mar (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
1,589.3
|
1,362.3
|
1,511.0
|
1,537.6
|
|
EBITDA
|
268.1
|
206.6
|
249.1
|
262.0
|
|
Core net profit
|
144.4
|
114.1
|
136.9
|
151.9
|
|
Core EPS (sen)
|
8.6
|
6.8
|
8.1
|
9.0
|
|
Core EPS growth (%)
|
(8.3)
|
(21.0)
|
20.0
|
10.9
|
|
Net DPS (sen)
|
3.4
|
4.3
|
4.9
|
5.4
|
|
Core P/E (x)
|
8.6
|
10.9
|
9.1
|
8.2
|
|
P/BV (x)
|
1.6
|
1.5
|
1.3
|
1.2
|
|
Net dividend yield (%)
|
4.7
|
5.8
|
6.6
|
7.3
|
|
ROAE (%)
|
19.4
|
14.2
|
15.3
|
15.3
|
|
ROAA (%)
|
9.4
|
7.3
|
8.7
|
9.5
|
|
EV/EBITDA (x)
|
4.5
|
5.5
|
4.5
|
4.0
|
|
Net debt/equity (%)
|
5.9
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
Samuel Yin Shao
Yang
|
|
|
|
Jade Tam
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR0.69
|
|
Target
Price:
|
MYR0.13
|
|
Recommendation:
|
Sell
|
|
|
|
|
|
|
|
|
1Q16 results a
big miss
|
|
1Q16 results came in below our expectation, with a core
net loss of MYR2m (vs. net earnings of MYR27m in 1Q15). This prompted a
78%-133% in FY16-17 earnings and resulted in a lower TP of MYR0.13
(-77%). Depleting orders, erosion is margins and replenishment risks
are key concerns, reflecting the challenging operating outlook. Despite
a 42% fall in share price over a 52-week period, risks still overweighs
rewards with minimal catalyst to re-rate. Valuations are expensive.
Maintain SELL.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
2,438.6
|
1,839.5
|
1,505.0
|
1,750.0
|
|
EBITDA
|
296.6
|
143.3
|
99.0
|
130.5
|
|
Core net profit
|
145.4
|
22.7
|
(6.6)
|
10.1
|
|
Core EPS (sen)
|
18.8
|
2.9
|
(0.9)
|
1.3
|
|
Core EPS growth (%)
|
215.9
|
(84.4)
|
nm
|
nm
|
|
Net DPS (sen)
|
5.7
|
3.0
|
0.0
|
0.0
|
|
Core P/E (x)
|
3.6
|
23.3
|
(79.9)
|
52.7
|
|
P/BV (x)
|
0.5
|
0.5
|
0.5
|
0.5
|
|
Net dividend yield (%)
|
8.3
|
4.4
|
0.0
|
0.0
|
|
ROAE (%)
|
14.1
|
2.1
|
(0.6)
|
0.9
|
|
ROAA (%)
|
5.4
|
0.8
|
(0.2)
|
0.4
|
|
EV/EBITDA (x)
|
6.4
|
12.2
|
14.1
|
10.7
|
|
Net debt/equity (%)
|
71.7
|
80.4
|
68.5
|
66.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.78
|
|
Target
Price:
|
MYR1.70
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
1Q16: Boosted by
margins
|
|
1Q16 results positively surprised on higher-than-expected
construction and precast margins. Kimlun’s total outstanding orderbook
remains solid at MYR2.1b. However, its further job win prospect has
been priced in. Our earnings forecasts are unchanged as we expect
margins to normalize in 2H16. Maintain HOLD at unchanged MYR1.70 TP
(11x 2017 PER).
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,206.4
|
1,053.6
|
1,095.3
|
1,079.8
|
|
EBITDA
|
90.7
|
114.5
|
92.5
|
92.8
|
|
Core net profit
|
33.8
|
64.4
|
49.4
|
45.6
|
|
Core EPS (sen)
|
11.3
|
21.4
|
16.4
|
15.2
|
|
Core EPS growth (%)
|
(5.3)
|
90.5
|
(23.3)
|
(7.7)
|
|
Net DPS (sen)
|
3.5
|
6.4
|
4.4
|
4.1
|
|
Core P/E (x)
|
15.8
|
8.3
|
10.8
|
11.7
|
|
P/BV (x)
|
1.3
|
1.2
|
1.1
|
1.0
|
|
Net dividend yield (%)
|
2.0
|
3.6
|
2.5
|
2.3
|
|
ROAE (%)
|
9.7
|
15.0
|
10.3
|
8.9
|
|
ROAA (%)
|
3.8
|
6.8
|
5.0
|
4.4
|
|
EV/EBITDA (x)
|
5.0
|
4.2
|
6.4
|
6.2
|
|
Net debt/equity (%)
|
23.2
|
14.7
|
12.2
|
7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR0.60
|
|
Target
Price:
|
MYR0.64
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
1Q16 above but
HOLD for now
|
|
1Q16 headline loss included massive exceptionals/one-offs.
But, 1Q16 core earnings were above expectation potentially due to lumpy
earnings recognition. Nevertheless, its balance sheet remains as a
concern given its high gearing and receivables. Our earnings forecasts
are unchanged but we lower our TP to MYR0.64 (-29%) after we switch our
valuation basis to 0.5x P/B as near-term share price would take cue
from its balance sheet. The stock is a HOLD now.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,002.8
|
1,788.8
|
1,583.3
|
1,485.5
|
|
EBITDA
|
87.2
|
124.3
|
160.8
|
161.0
|
|
Core net profit
|
23.7
|
47.5
|
59.4
|
58.7
|
|
Core EPS (sen)
|
3.1
|
6.1
|
7.7
|
7.6
|
|
Core EPS growth (%)
|
(55.8)
|
100.0
|
25.1
|
(1.2)
|
|
Net DPS (sen)
|
1.3
|
0.5
|
0.6
|
0.6
|
|
Core P/E (x)
|
19.7
|
9.9
|
7.9
|
8.0
|
|
P/BV (x)
|
0.5
|
0.4
|
0.4
|
0.4
|
|
Net dividend yield (%)
|
2.1
|
0.8
|
1.0
|
1.0
|
|
ROAE (%)
|
2.7
|
4.7
|
5.2
|
4.9
|
|
ROAA (%)
|
1.3
|
2.0
|
2.2
|
2.1
|
|
EV/EBITDA (x)
|
10.3
|
10.2
|
6.6
|
6.2
|
|
Net debt/equity (%)
|
32.3
|
59.3
|
48.1
|
40.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR0.38
|
|
Target
Price:
|
MYR0.42
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
Aims to tough it
out and be ahead as cycle turns
|
|
We expect an improved 2Q16 earnings, on higher asset
utilisation. The OSV market remains challenging but is at its trough.
Icon aims to be resilient in such times and targets to be ahead in the
M&A activity, when opportunity arises. Its M&A prospect is a key
standout; a re-rating catalyst once crystalised. Valuations are
attractive now even without the M&A angle.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
318.9
|
266.6
|
254.6
|
327.1
|
|
EBITDA
|
190.3
|
122.8
|
99.1
|
130.3
|
|
Core net profit
|
74.9
|
18.2
|
6.0
|
27.4
|
|
Core EPS (sen)
|
6.4
|
1.5
|
0.5
|
2.3
|
|
Core EPS growth (%)
|
(34.1)
|
(75.6)
|
(66.9)
|
354.7
|
|
Net DPS (sen)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
Core P/E (x)
|
5.9
|
24.2
|
73.1
|
16.1
|
|
P/BV (x)
|
0.4
|
0.6
|
0.6
|
0.6
|
|
Net dividend yield (%)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
ROAE (%)
|
10.3
|
2.0
|
0.8
|
3.7
|
|
ROAA (%)
|
4.5
|
1.1
|
0.4
|
1.9
|
|
EV/EBITDA (x)
|
7.7
|
9.2
|
11.1
|
7.5
|
|
Net debt/equity (%)
|
54.9
|
84.9
|
89.8
|
71.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
E.U: Economic confidence rose for a second month in May as
the European Central Bank prepares to present updated economic
projections that could provide further clues about the impact of its
stimulus program. An index of executive and consumer sentiment increased
to 104.7 from a revised 104.0 in April, the European Commission said.
(Source: Bloomberg)
Germany: Consumer prices in May unexpectedly halt slide
before ECB meets, offering some good news to policy makers struggling to
revive price growth in the 19-nation euro area. The inflation rate rose
to zero compared with -0.3% YoY in April, data from the Federal
Statistics Office in Wiesbaden showed. Prices increased 0.4% MoM.
(Source: Bloomberg)
France: Economy grew faster than originally estimated in
the first quarter, lifted by improving corporate investment. Growth
accelerated to 0.6%, instead of the 0.5% estimated April 29, France’s
statistics office Insee said. That compares with a 0.4% increase in GDP
in the previous quarter. The economy expanded 1.4% YoY. French GDP report
showed that business investment jumped 2.4% in the quarter instead of the
1.6% originally estimated, helped by EUR 40b (USD 46b) in tax cuts over
the course of four years and a short-term tax break that allowed
companies accelerated amortization in the current fiscal year. Consumer
spending increased 1%, compared with the 1.2% initially reported.
(Source: Bloomberg)
|
|
|
|
|
|
|
Other News:
AirAsia: Offered MYR4.1b for its aircraft leasing company
Asia Aviation Capital Ltd (ACC). ACC is less than 2 years old and has
made its first lease outside the group to Pakistan International Airlines
recently. It is also expected to recruit a CEO in a month’s time. ACC is
headquartered in Labuan and owns and oversees aircraft leasing
arrangements for its affiliate airlines such as Indonesia AirAsia and
Thai AirAsia. The company had 43, A320s as of March 2016. The company did
not reveal the party that made the offer but adds that it is the group’s
intention to eventually dispose of its strategic investments and non-core
businesses. (Source: The Star)
Atlan Holdings: Get shareholders’ approval to dispose up
to 25% of stake in duty free business to Heinemann. Atlan Holdings’
79.09% unit, Duty Free International Limited (DFI), has received
shareholders’ approval to dispose up to 25% stake plus one share in its
wholly owned subsidiary DFZ Capital to Heinemann Asia Pacific. The
company said that the sale will enable DFI to leverage on Heinemann
resources and expertise. Heinemann is also one of the leading
multi-category duty free retailers at KLIA2 operating under the brand “be
Duty Free”. The sale is targeted to be completed by next month. Under the
terms, Heinemann are also entitled to purchase a second tranche of shares
in DFZ via a call option in an 18-month period. An option of a third
tranche of shares in a 12 month period will also begin on the date of
expiry of the second tranche call option. (Source: The Sun Daily)
Bintulu Port: Awards MYR57.9m contract to build two tugs.
Bintulu Port Holdings has awarded a MYR57.91m contract to Bunga Tenaga to
build two units of 45-tonne bollard pull ship handling tugs compete with
crew. The construction work on the first hull is for 16 months, while the
second hull is for 18 months. A sum of MYR4000 per tug per day shall be
imposed as liquidated and ascertained damages for any delay in delivery
of the tugs. The hire of the two tugs will be 120 months with an option
to renew for a period of 60 months. (Source: The Edge)
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