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Share
Price:
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MYR2.90
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Target
Price:
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MYR2.75
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Recommendation:
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Hold
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Expanding radio
portfolio
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ASTRO will acquire Capital FM and Red FM for MYR42m cash.
The purchase consideration values each radio stations at MYR21m, pricey
by recent benchmarks. Both radio stations will be rebranded; we are
unsure on the value add given that ASTRO already operates nine radio
stations covering all major language groups and commands 70% share of
radio adex. That said, we opine that this development is immaterial to
ASTRO.
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FYE Jan (MYR m)
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FY15A
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FY16A
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FY17E
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FY18E
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Revenue
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5,231.4
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5,475.4
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5,681.6
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5,814.2
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EBITDA
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1,808.3
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1,940.6
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1,842.8
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2,030.1
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Core net profit
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519.4
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662.0
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644.8
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798.1
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Core FDEPS (sen)
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10.0
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12.7
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12.3
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15.2
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Core FDEPS growth(%)
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15.9
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27.3
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(3.0)
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23.8
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Net DPS (sen)
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11.0
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12.0
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12.0
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12.0
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Core FD P/E (x)
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29.1
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22.8
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23.6
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19.0
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P/BV (x)
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21.7
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25.1
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24.3
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19.0
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Net dividend yield (%)
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3.8
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4.1
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4.1
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4.1
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ROAE (%)
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79.5
|
95.1
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105.6
|
112.8
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ROAA (%)
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7.5
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9.7
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9.2
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11.3
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EV/EBITDA (x)
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9.6
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9.1
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9.8
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9.0
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Net debt/equity (%)
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301.0
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nm
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485.0
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397.7
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Share
Price:
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MYR2.57
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Target
Price:
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MYR2.48
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Recommendation:
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Hold
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Capital &
Red FM will play their last tunes for STAR
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STAR stands to receive a total cash consideration of
MYR42m (6sen/shr) for its sale of both Capital and Red FM. We are
positive on this disposal as not only are they being disposed at a
relatively good price, the losses from both radio stations (FY15: -MYR4.1m)
will no longer be a drag to STAR’s future earnings. That said, we do
not believe this development is significant enough to re-rate the
stock. HOLD; our TP is SOP-based.
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FYE Dec (MYR m)
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FY14A
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FY15A
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FY16E
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FY17E
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Revenue
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1,013.7
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1,019.0
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1,023.7
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1,071.5
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EBITDA
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242.3
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211.2
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176.8
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188.7
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Core net profit
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151.5
|
131.9
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105.9
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118.5
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Core EPS (sen)
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20.5
|
17.9
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14.4
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16.1
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Core EPS growth (%)
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4.8
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(12.9)
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(19.7)
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11.9
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Net DPS (sen)
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18.0
|
18.0
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18.0
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18.0
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Core P/E (x)
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12.5
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14.4
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17.9
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16.0
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P/BV (x)
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1.7
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1.7
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1.7
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1.7
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Net dividend yield (%)
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7.0
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7.0
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7.0
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7.0
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ROAE (%)
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na
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na
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na
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na
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ROAA (%)
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9.0
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7.8
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6.4
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7.6
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EV/EBITDA (x)
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5.7
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6.8
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9.2
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8.6
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Net debt/equity (%)
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net cash
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net cash
|
net cash
|
net cash
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Samuel Yin Shao
Yang
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Jade Tam
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Glomac (GLMC MK)
by Wei Sum
Wong
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Share
Price:
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MYR0.77
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Target
Price:
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MYR0.82
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Recommendation:
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Hold
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Earnings may
fall short
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Glomac’s upcoming 1QFY4/17 results could come in below
expectations, with weaker core net profit QoQ and YoY. Glomac’s
internal sales target of MYR600-650m for FY17 also seems challenging.
We adjust our earnings forecasts by -21% to +3.4% but raise RNAV-TP by
+8% to MYR0.82 (on unchanged 60% disc. to RNAV) after factoring the
Plaza Kelana Jaya phase 4 (PKJ4) project
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FYE Apr (MYR m)
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FY15A
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FY16A
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FY17E
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FY18E
|
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Revenue
|
473.3
|
598.9
|
535.2
|
829.4
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EBITDA
|
172.0
|
157.0
|
208.6
|
209.5
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Core net profit
|
54.8
|
70.2
|
67.8
|
118.0
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Core EPS (sen)
|
7.6
|
9.7
|
9.4
|
16.4
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Core EPS growth (%)
|
(41.2)
|
28.7
|
(3.5)
|
74.1
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Net DPS (sen)
|
4.3
|
4.0
|
2.8
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4.9
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Core P/E (x)
|
10.2
|
7.9
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8.2
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4.7
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P/BV (x)
|
0.6
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0.6
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0.5
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0.5
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Net dividend yield (%)
|
5.5
|
5.2
|
3.7
|
6.4
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ROAE (%)
|
na
|
na
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na
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na
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ROAA (%)
|
3.1
|
3.6
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3.3
|
5.1
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EV/EBITDA (x)
|
6.8
|
6.2
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4.1
|
4.5
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Net debt/equity (%)
|
42.1
|
30.2
|
20.2
|
25.4
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MACRO RESEARCH
|
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Economics Research
by
Suhaimi Ilias
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Decelerated on
slower manufacturing
|
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Industrial production (IP) growth slowed YoY and fell
MoM in July 2016 by +4.1% and -2.2% respectively (June 2016: +5.2%
YoY; +2.3% MoM), mainly on manufacturing’s slowest YoY growth this
year of +3.2% and the MoM drop of -3.4% (June 2016: +4.6% YoY; +3.9%
MoM). Like the earlier external trade statistics, figures for July
2016 were affected by the public holiday.
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Suhaimi Ilias
|
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Zamros
Dzulkafli
|
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NEWS
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Outside Malaysia:
U.S: Brainard says prudence warranted as hiking rates
poses risks. Federal Reserve Governor Lael Brainard counseled continued
prudence in tightening monetary policy, even as she said the economy is
making gradual progress toward achieving the central bank’s goals. “The
case to tighten policy preemptively is less compelling” in an environment
where declining unemployment has been slow to spur faster inflation,
Brainard said, according to the text of her prepared remarks in Chicago.
She made no reference to a specific meeting of the policy-setting Federal
Open Market Committee. (Source: Bloomberg)
U.S: CEOs’ optimism ebbs, suggesting growth to stay muted.
Chief executive officers of some of the largest U.S. companies have
become less optimistic about their business prospects, suggesting
economic growth is likely to remain muted. The Business Roundtable CEO
Economic Outlook Index, a measure of expectations for revenue, capital
spending and employment, declined to 69.6 in the third quarter from 73.5
in the previous quarter, according to a survey released. It was the first
decline since the end of last year. Readings above 50 indicate economic
expansion, and the gauge remains below its long-run average of 79.6.
(Source: Bloomberg)
U.K: House prices edge higher in ‘muted’ post-Brexit
market. U.K. house prices edged higher in August as the property market
continued to experience a lackluster recovery following a tax increase
and the shock of the Brexit vote, according to Acadata and LSL Property
Services Plc. The average value of a home rose just 0.1% MoM, the same
pace as in July, to GBP 292,921 (USD 390,000), the groups said in a
report published. It left prices 4.3% YoY, the weakest annual increase
for three years. (Source: Bloomberg)
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Other News:
Construction: PNB faces potential delay amid KL118
setback. PNB is facing a setback in the ongoing construction of what
would be the tallest building in Southeast Asia, which raises the spectre
of possible delay in completion. There were problems with the foundation
works which required rectification works. It is not clear what the
problem specifically was or how long the remedial process took. Samsung
C&T Corporation UEM Construction JV Sdn Bhd, the main contractor for
the project, declined to comment and referred queries to PNB Merdeka
Ventures, the PNB vehicle through which it owns the entire project.
(Source: The Edge Financial Daily)
Construction: Sistemas-Rasma group wins MYR153m MRT auto
fare collection deal. Mass Rapid Transit Corporation Sdn Bhd (MRT Corp)
has awarded the MYR152.9m automatic fare collection (AFC) work package
for the MRT Sungai Buloh-Serdang-Putrajaya (SSP) Line to Indra Sistemas
and Rasma Corp Consortium. The Work Package SSP-SY-207 is for the
engineering, procurement, construction, testing and commissioning of the
AFC. Spain-listed Indra Sistemas and local firm Rasma Corp own 80% and
20% interest in the consortium respectively. (Source: The Sun Daily)
Property: Johor govt to maintain prices of affordable
houses. The state government will continue to assist eligible first-time
housebuyers to own houses under the Johor Affordable Housing Scheme
(RMMJ) by taking proactive measures. The price for the RMMJ houses has
been set at MYR150k each while houses under package A were at MYR40k and
package B at MYR80k. Developers for the RMMJ housing schemes were not
allowed to increase prices due to the state government’s policy of
providing affordable homes. (Source: The Star)
Property: Ministry to meet HBA, Redha on developer loans
approval. The Ministry of Urban Well-being, Housing and Local Government
will hold a dialogue with the House Buyers Association (HBA) and the Real
Estate Housing Developer’s Association (Rehda) next Tuesday, following
the uproar sparked by the proposal to issue moneylending licences to
developers to provide more financing options for house buyers. The scheme
was open for applications late last week, but backtracked at the weekend,
saying it was just a proposal and that a comprehensive study would be done
first. (Source: The Star)
Naim Holdings: Launching more medium-cost residential
projects to ride on demand. Property-and-construction firm Naim Holdings
is launching more medium-cost residential projects to ride on the good
demand in Sarawak. The company’s latest medium-cost project, Naim
EduVista, was unveiled on Aug 31. The project, located in the university
town of Kota Samarahan’s Desa Ilmu township, comprises 60 units of
apartments in four-storey blocks priced from MYR350k. (Source: The Star)
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