|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR4.39
|
|
Target
Price:
|
MYR4.40
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Positive volume
outlook
|
|
3Q16 volume likely to surprise on the upside again with a
high single digit growth rate. Additionally, we note that the container
trade at South East Asia has shown signs of improvement from Apr 2016.
Our FY16-18 EPS forecasts are raised by 5%/3%/3% as we raise our volume
growth assumption. Consequently, our DCF-derived TP is nudged up to
MYR4.40 (+2%; WACC: 6.7%, 2025-54 growth rate: 2%). Maintain HOLD;
stock trades at 2017 PER of 23x, slightly above its historical mean PER
of 22x
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
1,503.0
|
1,578.3
|
1,748.7
|
1,812.3
|
|
EBITDA
|
800.8
|
869.1
|
984.1
|
1,050.9
|
|
Core net profit
|
512.2
|
504.9
|
625.9
|
649.1
|
|
Core EPS (sen)
|
15.0
|
14.8
|
18.4
|
19.0
|
|
Core EPS growth (%)
|
17.7
|
(1.4)
|
24.0
|
3.7
|
|
Net DPS (sen)
|
11.3
|
11.1
|
13.8
|
14.3
|
|
Core P/E (x)
|
29.2
|
29.7
|
23.9
|
23.1
|
|
P/BV (x)
|
8.5
|
7.9
|
7.3
|
6.8
|
|
Net dividend yield (%)
|
2.6
|
2.5
|
3.1
|
3.3
|
|
ROAE (%)
|
30.4
|
27.6
|
31.7
|
30.4
|
|
ROAA (%)
|
13.8
|
12.8
|
15.0
|
14.9
|
|
EV/EBITDA (x)
|
15.2
|
17.0
|
16.5
|
15.3
|
|
Net debt/equity (%)
|
40.0
|
39.7
|
59.4
|
52.2
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
U.S: Households’ income in 2015 shows biggest jump since
recession and the poverty rate fell, signs of U.S. economic health that
could potentially boost Democratic candidates this year. Fresh yearly
data from the U.S. Census Bureau showed median, inflation-adjusted
household income rose 5.2% to USD 56,516 in 2015, the highest level since
USD 57,423 in 2007, when the recession began. Gains were spread across
the income spectrum and by race, while women’s earnings inched closer to
men’s. (Source: Bloomberg)
Germany: Investor confidence was unchanged in September
after recent data signaled economic momentum cooled. The ZEW Center for
European Economic Research in Mannheim said its index of investor and
analyst expectations, which aims to predict economic developments six
months ahead, held at 0.5. While Germany is benefiting from record-low
unemployment and borrowing costs, subdued global growth and the potential
fallout from the U.K.’s decision to leave the European Union are weighing
on its economic prospects. (Source: Bloomberg)
U.K: Inflation was unexpectedly unchanged in August,
though more signs emerged of imported price pressures because of the
weaker pound, according to figures from the Office for National
Statistics. Inflation rate remained at 0.6%. Biggest upward increase was
from food, air fares and a smaller decline in motor fuels compared with
year earlier. Core inflation held at 1.3%. Input prices rose an annual
7.6% and import costs increased 9.3%. (Source: Bloomberg)
China: Economy strengthened after July’s hiccup as factory
output, investment and retail sales all exceeded economist estimates,
amid a boost from property that’s added to concern that price gains may
prove unsustainable. Industrial production rose 6.3% YoY in August.
Retail sales climbed 10.6% YoY last month, from 10.2% on July.
Fixed-asset investment increased 8.1% YoY in first eight months of the
year (Source: Bloomberg)
|
|
|
|
|
|
|
Other News:
Construction: MRT Corp plans third Klang Valley MRT Line.
Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) is in the midst of
planning to build the third Klang Valley MRT Line that will shorten
travel time within the capital. MRT Corp has appointed an independent
consultant to study the plan, for which its first report is expected to
be ready in the fourth quarter of this year or the first quarter of next
year. The third line, which would be a circular track and not a long
stretch, would provide services around the city centre besides becoming a
fully underground passage. (Source: The Star)
PPB Group: No transaction for Golden Screen Cinemas yet.
PPB Group has clarified that no decision has been made to pursue any
particular option for its cinema operations under Golden Screen Cinemas
Sdn Bhd (GSC) and that no transaction has been agreed as at yesterday.
Billionaire Robert Kuok, who controls PPB group, is seeking a buyer for
GSC in a deal that could fetch as much as USD500m (MYR2.06b). PPB was
said to have received first-round bids for the cinema business. (Source:
The Sun Daily)
LBS Bina: Prepping ML Global for growth. LBS Bina Group,
which is expected to announce a corporate exercise today, is grooming its
51.1%-owned listed subsidiary ML Global as a vehicle to secure government
and private construction jobs, having placed senior staff at ML Global to
assist in setting up the direction and workflow of the construction
company. ML Global will be adopting the same business model as its parent
LBS, such as getting more jobs to boost profit, build reputation of the
company and to deliver projects within the stipulated time frame.
(Source: The Sun Daily)
Pecca: Gets a lift from DCA green light. Pecca Group,
which makes leather upholstery for the automotive industry, is now able
to bid for more upholstery jobs in the aviation industry after receiving
the green light from the Department of Civil Aviation (DCA). With the
DCA’s approval, its 60%-owned Pecca Leather Aviation Services Sdn Bhd
(PAviation) could now vie for other leather upholstery jobs with various
commercial airlines and private jet companies here. (Source: The Star)
AWC: Bags KL118, two other jobs worth MYR27.5m. The KL118
subcontract worth MYR10.2m is for the implementation of a solid
waste-handling system, awarded by Samsung C&T Corporation UEM
Construction JV Sdn Bhd (formerly known as KL118 Tower Sdn Bhd). The jobs
in Taiwan, awarded by Evergreen Sky Catering Corp, the subcontract in
Taiwan is for the supply, installation, testing and commissioning of a
waste-handling system for a new in-flight catering facility at Taoyuan
International Airport. The deal is worth MYR7.8m and is expected to be
completed by March 2018. The subcontract in India worth MYR9.5m was
awarded by Shapoorji Pallonji and Co Pte Ltd for the design and supply of
an automated vacuum waste collection system. It is expected to be
completed by October 2018. (Source: The Sun Daily)
|
|
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.