|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR7.49
|
|
Target
Price:
|
MYR7.78
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Still
challenging outlook
|
|
Sime posted a decent headline net profit of MYR664m but
largely boosted by land sale gains and asset monetization. Underlying
operations were weak. While the final quarter is traditionally Sime’s
best quarter, we have cut FY16-18 EPS forecasts by 8%/17%/18% on still
challenging outlook. Sime remains a HOLD on a lowered TP of MYR7.78
(-20sen).
|
|
|
|
|
|
|
FYE Jun (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
43,908.0
|
43,729.0
|
44,443.1
|
48,073.6
|
|
EBITDA
|
5,270.9
|
4,567.6
|
4,116.6
|
4,526.5
|
|
Core net profit
|
3,089.3
|
2,313.8
|
1,780.3
|
2,301.1
|
|
Core EPS (sen)
|
50.9
|
37.3
|
28.7
|
37.0
|
|
Core EPS growth (%)
|
(5.2)
|
(26.9)
|
(23.1)
|
29.2
|
|
Net DPS (sen)
|
36.0
|
25.0
|
18.6
|
24.1
|
|
Core P/E (x)
|
14.7
|
20.1
|
26.1
|
20.2
|
|
P/BV (x)
|
1.6
|
1.5
|
1.5
|
1.5
|
|
Net dividend yield (%)
|
4.8
|
3.3
|
2.5
|
3.2
|
|
ROAE (%)
|
11.1
|
7.9
|
5.8
|
7.3
|
|
ROAA (%)
|
6.2
|
4.1
|
2.8
|
3.5
|
|
EV/EBITDA (x)
|
12.5
|
14.9
|
15.0
|
14.0
|
|
Net debt/equity (%)
|
22.0
|
46.1
|
45.6
|
49.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR5.40
|
|
Target
Price:
|
MYR5.90
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
A challenging
start
|
|
Axiata’s results were a miss owing to headwinds at Celcom
and Robi. Celcom’s inability to recovery meaningfully (since resolving
its IT problems) is a concern, but is possibly priced-in to some extent
(share price is down 16% YTD). Maintain HOLD, with a lower TP of
MYR5.90 following our earnings cuts.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
18,711.8
|
19,883.5
|
22,484.8
|
24,766.4
|
|
EBITDA
|
6,998.6
|
7,284.1
|
8,397.4
|
9,397.7
|
|
Core net profit
|
2,239.0
|
2,071.0
|
2,071.5
|
2,540.6
|
|
Core EPS (sen)
|
26.1
|
23.9
|
23.5
|
28.8
|
|
Core EPS growth (%)
|
(15.8)
|
(8.6)
|
(1.7)
|
22.6
|
|
Net DPS (sen)
|
22.0
|
20.0
|
20.0
|
24.5
|
|
Core P/E (x)
|
20.7
|
22.6
|
23.0
|
18.7
|
|
P/BV (x)
|
2.2
|
2.0
|
2.0
|
2.0
|
|
Net dividend yield (%)
|
4.1
|
3.7
|
3.7
|
4.5
|
|
ROAE (%)
|
11.1
|
9.4
|
8.7
|
10.6
|
|
ROAA (%)
|
4.8
|
3.9
|
3.5
|
4.1
|
|
EV/EBITDA (x)
|
10.1
|
9.4
|
7.7
|
6.8
|
|
Net debt/equity (%)
|
42.3
|
46.3
|
57.2
|
52.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR6.06
|
|
Target
Price:
|
MYR6.70
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
1Q16 results
surprised positively
|
|
RHB got off to a good start for the year with its 1Q16
earnings surprising on the upside. Topline growth was a decent 6% YoY
while cost savings kicked in to provide the additional boost. Our
FY16-18 earnings forecasts are raised by 14-18% and our TP is also
raised to MYR6.70 (from MYR6.30). The stock has performed well, and
much of the positives are reflected for now, in our view. HOLD
maintained.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Operating income
|
6,234.9
|
6,191.2
|
6,259.7
|
6,485.0
|
|
Pre-provision profit
|
2,823.7
|
2,398.0
|
3,120.4
|
3,317.1
|
|
Core net profit
|
1,925.6
|
1,689.2
|
2,027.6
|
2,119.1
|
|
Core EPS (MYR)
|
0.71
|
0.65
|
0.66
|
0.68
|
|
Core EPS growth (%)
|
3.2
|
(9.2)
|
1.1
|
4.0
|
|
Net DPS (MYR)
|
0.06
|
0.12
|
0.20
|
0.20
|
|
Core P/E (x)
|
8.5
|
9.3
|
9.2
|
8.9
|
|
P/BV (x)
|
0.8
|
0.8
|
0.9
|
0.8
|
|
Net dividend yield (%)
|
1.0
|
2.0
|
3.3
|
3.3
|
|
Book value (MYR)
|
7.31
|
7.51
|
7.09
|
7.59
|
|
ROAE (%)
|
10.8
|
8.1
|
9.0
|
9.3
|
|
ROAA (%)
|
0.9
|
0.8
|
0.9
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR6.67
|
|
Target
Price:
|
MYR6.20
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
A typical start
|
|
1Q16 results contained little surprises, and in any case,
is relatively immaterial to TM’s investment thesis. The market is
awaiting the mid-year launch of Webe, TM’s wireless product. We are
mildly concerned about the possible earnings drag from the wireless
product. Maintain HOLD with an unchanged TP of MYR6.20.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
11,235.1
|
11,721.6
|
12,635.6
|
13,471.9
|
|
EBITDA
|
3,728.2
|
3,677.0
|
3,883.6
|
4,100.1
|
|
Core net profit
|
941.2
|
894.9
|
803.2
|
808.3
|
|
Core EPS (sen)
|
25.9
|
23.8
|
21.4
|
21.5
|
|
Core EPS growth (%)
|
(10.8)
|
(8.1)
|
(10.2)
|
0.6
|
|
Net DPS (sen)
|
22.9
|
21.4
|
19.2
|
19.4
|
|
Core P/E (x)
|
25.8
|
28.0
|
31.2
|
31.0
|
|
P/BV (x)
|
3.3
|
3.2
|
3.2
|
3.2
|
|
Net dividend yield (%)
|
3.4
|
3.2
|
2.9
|
2.9
|
|
ROAE (%)
|
12.8
|
11.7
|
10.3
|
10.2
|
|
ROAA (%)
|
4.3
|
3.8
|
3.3
|
3.2
|
|
EV/EBITDA (x)
|
7.5
|
7.9
|
7.5
|
7.2
|
|
Net debt/equity (%)
|
39.5
|
45.7
|
52.9
|
57.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR5.15
|
|
Target
Price:
|
MYR4.50
|
|
Recommendation:
|
Sell
|
|
|
|
|
|
|
|
|
Confirms MYR2b
new Klang plant
|
|
UMW Toyota (UMWT), a 51% subsidiary of UMWH, has confirmed
plans to build a new plant (costing MYR2b inclusive of land, building
and equipment) in Bukit Raja Industrial Estate, Klang – a strategic
move for cost efficiency and potentially to cater for export.
Nonetheless, the high capex for this, alongside UMWH’s investments into
aerospace engineering could weaken UMWH’s balance sheet which already
looks stretched (55% net gearing). Maintain SELL for now with unchanged
SOP-TP of MYR4.50.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
14,932.5
|
14,441.6
|
9,993.4
|
11,298.5
|
|
EBITDA
|
1,811.7
|
646.3
|
675.9
|
787.3
|
|
Core net profit
|
850.3
|
424.8
|
98.2
|
176.7
|
|
Core EPS (sen)
|
72.8
|
36.4
|
8.4
|
15.1
|
|
Core EPS growth (%)
|
13.0
|
(50.0)
|
(76.9)
|
79.9
|
|
Net DPS (sen)
|
41.0
|
25.0
|
4.2
|
7.6
|
|
Core P/E (x)
|
7.1
|
14.2
|
61.3
|
34.1
|
|
P/BV (x)
|
0.9
|
0.9
|
0.9
|
0.9
|
|
Net dividend yield (%)
|
8.0
|
4.9
|
0.8
|
1.5
|
|
ROAE (%)
|
13.2
|
6.5
|
1.5
|
2.6
|
|
ROAA (%)
|
5.5
|
2.4
|
0.6
|
1.1
|
|
EV/EBITDA (x)
|
9.1
|
23.6
|
17.8
|
15.0
|
|
Net debt/equity (%)
|
12.4
|
49.8
|
49.4
|
46.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.69
|
|
Target
Price:
|
MYR2.30
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
1Q16:
Construction outshine
|
|
WCT’s 1Q16 core net profit was in line. Higher
contribution from its construction division and retail mall JVs offset
lower earnings from property. Clinching a major construction job would
re-rate the stock. Our earnings forecasts are unchanged. Maintain BUY
on WCT at MYR2.30 TP.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,662.2
|
1,667.9
|
2,250.2
|
2,400.5
|
|
EBITDA
|
147.5
|
145.7
|
242.0
|
256.9
|
|
Core net profit
|
112.3
|
129.3
|
134.8
|
146.5
|
|
Core EPS (sen)
|
10.3
|
11.3
|
11.2
|
12.2
|
|
Core EPS growth (%)
|
(44.9)
|
9.6
|
(0.4)
|
8.7
|
|
Net DPS (sen)
|
6.2
|
4.2
|
4.2
|
4.2
|
|
Core P/E (x)
|
16.4
|
15.0
|
15.0
|
13.8
|
|
P/BV (x)
|
0.8
|
0.7
|
0.7
|
0.7
|
|
Net dividend yield (%)
|
3.7
|
2.5
|
2.5
|
2.5
|
|
ROAE (%)
|
5.1
|
5.3
|
5.1
|
5.3
|
|
ROAA (%)
|
1.9
|
2.0
|
1.9
|
2.0
|
|
EV/EBITDA (x)
|
21.6
|
27.1
|
16.8
|
16.1
|
|
Net debt/equity (%)
|
66.4
|
78.9
|
73.9
|
73.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.90
|
|
Target
Price:
|
MYR1.80
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
1Q16: Hit by dry
weather
|
|
TSH’s 1Q16 results were weaker-than-expected due to
shortfall in FFB output due to the dry weather. However, earnings
should improve in the following quarters on seasonally stronger
production and higher CPO price. Hence, our earnings forecasts are
unchanged. Maintain HOLD at an unchanged TP of MYR1.80.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,079.9
|
798.9
|
1,176.0
|
1,292.3
|
|
EBITDA
|
229.4
|
159.0
|
220.3
|
292.4
|
|
Core net profit
|
132.8
|
82.0
|
127.7
|
182.5
|
|
Core EPS (sen)
|
9.8
|
6.1
|
9.5
|
13.6
|
|
Core EPS growth (%)
|
19.5
|
(38.0)
|
55.7
|
42.9
|
|
Net DPS (sen)
|
2.5
|
2.0
|
2.8
|
4.1
|
|
Core P/E (x)
|
19.3
|
31.2
|
20.0
|
14.0
|
|
P/BV (x)
|
2.1
|
1.9
|
1.8
|
1.6
|
|
Net dividend yield (%)
|
1.3
|
1.1
|
1.5
|
2.1
|
|
ROAE (%)
|
11.8
|
6.4
|
9.1
|
12.0
|
|
ROAA (%)
|
5.3
|
2.8
|
3.9
|
5.3
|
|
EV/EBITDA (x)
|
18.4
|
25.8
|
18.6
|
14.0
|
|
Net debt/equity (%)
|
81.5
|
97.2
|
94.7
|
86.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR0.68
|
|
Target
Price:
|
MYR0.77
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
1Q16 results in
line
|
|
1Q16 core earnings accounted for 24% of our full-year
forecast. Barakah’s operations are progressing well, on expectations of
improving earnings ahead. The effects from its cost rationalisation
exercise and workflows from its T&I Package A works will be reflected
from 2Q16. Despite these positives, we see minimal catalyst to re-rate.
Barakah is fairly valued for now. Our TP is based on 10x 2017 PER
(unchanged).
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
866.3
|
592.6
|
646.0
|
739.8
|
|
EBITDA
|
141.5
|
38.6
|
88.0
|
126.3
|
|
Core net profit
|
74.5
|
12.8
|
36.9
|
66.9
|
|
Core EPS (sen)
|
8.6
|
1.5
|
4.3
|
7.7
|
|
Core EPS growth (%)
|
81.3
|
(82.8)
|
188.4
|
81.2
|
|
Net DPS (sen)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
Core P/E (x)
|
7.8
|
45.6
|
15.8
|
8.7
|
|
P/BV (x)
|
1.4
|
1.6
|
1.5
|
1.2
|
|
Net dividend yield (%)
|
0.0
|
0.0
|
0.0
|
0.0
|
|
ROAE (%)
|
28.4
|
3.8
|
11.1
|
17.4
|
|
ROAA (%)
|
12.1
|
1.8
|
5.4
|
9.5
|
|
EV/EBITDA (x)
|
5.1
|
21.8
|
7.7
|
4.3
|
|
Net debt/equity (%)
|
11.0
|
23.7
|
26.3
|
6.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR3.64
|
|
Target
Price:
|
MYR4.00
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
A decent start
for 2016
|
|
1Q16 core net profit of MYR10m met 15% of our/consensus
full-year forecasts – in line considering 1Q is typically ViTrox’s
weakest quarter. Bottomline aside, revenue was impressive with 1Q16
hitting MYR56m; highest ever recorded for 1Q. We keep our forecasts,
BUY rating and MYR4.00 TP (14x CY17 EPS) unchanged pending briefing on
26 May.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
169.9
|
160.3
|
220.8
|
244.5
|
|
EBITDA
|
53.5
|
58.9
|
71.7
|
78.7
|
|
Core net profit
|
50.3
|
51.3
|
66.3
|
67.3
|
|
Core EPS (sen)
|
21.5
|
21.8
|
28.2
|
28.6
|
|
Core EPS growth (%)
|
135.6
|
1.5
|
29.2
|
1.5
|
|
Net DPS (sen)
|
6.0
|
6.2
|
8.1
|
8.2
|
|
Core P/E (x)
|
16.9
|
16.7
|
12.9
|
12.7
|
|
P/BV (x)
|
4.9
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4.1
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3.3
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2.8
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Net dividend yield (%)
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1.6
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1.7
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2.2
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2.2
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ROAE (%)
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32.9
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26.8
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28.5
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24.0
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ROAA (%)
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25.5
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21.3
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21.3
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16.4
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EV/EBITDA (x)
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8.9
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12.7
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11.4
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10.5
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Net debt/equity (%)
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net cash
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net cash
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net cash
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net cash
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MACRO RESEARCH
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Economics Research
by
Suhaimi Ilias
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The economy grew +1.8% YoY and +0.2% QoQ SAAR in 1Q
2016 (4Q 2015: +1.8% YoY; +6.2% QoQ SAAR). Growth was driven by
domestic demand which grew by +2.2% YoY (4Q 2015: +3.7% YoY) as net
external demand plunged -12.3% YoY (4Q 2015: +10.7% YoY). Maintain
our 2016 growth forecast at +1.7%, while official forecast stays at
1.0%-3.0% range.
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Suhaimi Ilias
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Zamros
Dzulkafli
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Technical Research
by Lee
Cheng Hooi
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The FBMKLCI rose by 5.12 points to close at 1,630.96
yesterday, while the FBMEMAS and FBM100 gained 17.82 and 22.76 points
respectively. In terms of market breadth, the gainer-to-loser ratio
was 303-to-509, while 360 counters were unchanged. A total of 1.73b
shares were traded valued at MYR1.81b.
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NEWS
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Outside Malaysia:
U.S: Households in Fed survey felt vulnerable despite
economic gains. A substantial share of Americans lacked retirement
savings and fewer households were confident in the outlook for their
income at the end of last year. That’s according to a Federal Reserve
report on the economic well-being of U.S. households in 2015. The
findings show that while respondents increasingly reported that they are
“doing OK” or “living comfortably,” a smaller share said they expected
income growth than in the prior year’s survey. Thirty-one percent of
non-retired Americans said they had no retirement savings at all,
unchanged from 2014. (Source: Bloomberg)
U.S. Home prices climbed 5.7% YoY in first quarter as
buyers competed for a limited supply of listings. Prices climbed 1.3% on
a seasonally adjusted basis from the previous three months, the 19th
consecutive quarterly gain, the Federal Housing Finance Agency said in a
report. Home prices have risen as job growth brings out more buyers in a
market starved for choices. There were 1.98 million houses for sale at
the end of March, down 1.5% from the same month last year, according to
the National Association of Realtors. While the U.S. has a whole had
robust gains, prices fell from the previous quarter in 12 states and the
District of Columbia, the FHFA said. (Source: Bloomberg)
S. Korea: May consumer confidence falls to 99 from 101.
Households’ inflation expectation for next 12 months fell to 2.4%, Bank
of Korea said in a statement. The survey is based on responses from 2,042
households across the nation, conducted between the 12-19 May. A reading
below 100 indicates that pessimists outnumber optimists. (Source:
Bloomberg)
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Other News:
Consumer: ‘U-turn’ on plain packaging plan for tobacco
products. Malaysia has changed its mind on introducing generic plain
packaging for tobacco products after succumbing to the pressure of the
tobacco industry and lobby groups, claimed an opposition lawmaker. Klang
member of Parliament Charles Santiago said Health Minister Dr S
Subramaniam expressed in Parliament that the ministry is not prepared to
proceed with the plan without public consultation. (Source: The Edge
Financial Daily)
O&G: Petronas to sell LNG to France’s EDF. Petroliam
Nasional (Petronas) has lined up the trading arm of French energy company
EDF to buy limited liquefied natural gas (LNG) volumes over three years,
according to two industry sources. London-based EDF is to take delivery
of one cargo every quarter but has an option to decline two deliveries
annually. The deal, is expected to start this year. (Source: The Star)
Coastal contracts: Starts MYR1.52b charter contract for
Pemex. Coastal Contracts has commenced a USD371m (MYR1.52b) charter
contract of its jack up gas compression service unit to Mexico’s national
oil company Petroleos Mexicanos (Pemex) early this year and it is slated
for enhanced oil recovery activities in the second half of 2016. The
charter contract spans a period of eight years, with an option to extend
for an additional four years. With this charter, the company has
successfully diversified its income stream to include the ownership and
charter of high-value oil and gas assets. (Source: The Edge Financial
Daily)
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