|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR6.57
|
|
Target
Price:
|
MYR7.20
|
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
|
Getting its
groove back
|
|
We believe the tide is turning for the better as passenger
traffic growth rates have recovered to the pre-2014 levels. Malaysian
carriers achieved record load factors in 3Q16 and this will prompt them
to deploy more aircraft going forward. Furthermore, traffic growth for
the international sector outperforms the domestic segment, which is
highly beneficial for MAHB as this provides greater unit revenue and
revenues on duty-free retail. No change to our earnings forecast and
MYR7.20 DCF-based TP.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
3,343.7
|
3,871.0
|
4,204.4
|
4,506.7
|
|
EBITDA
|
815.4
|
1,342.0
|
1,505.0
|
1,623.8
|
|
Core net profit
|
146.5
|
(118.0)
|
39.4
|
136.7
|
|
Core EPS (sen)
|
10.9
|
(7.4)
|
2.4
|
8.2
|
|
Core EPS growth (%)
|
(62.9)
|
nm
|
nm
|
247.0
|
|
Net DPS (sen)
|
10.4
|
0.9
|
3.4
|
8.3
|
|
Core P/E (x)
|
60.4
|
nm
|
276.7
|
79.7
|
|
P/BV (x)
|
1.2
|
1.2
|
1.3
|
1.3
|
|
Net dividend yield (%)
|
1.6
|
0.1
|
0.5
|
1.3
|
|
ROAE (%)
|
na
|
na
|
na
|
na
|
|
ROAA (%)
|
0.9
|
(0.5)
|
0.2
|
0.7
|
|
EV/EBITDA (x)
|
15.8
|
10.1
|
10.2
|
9.1
|
|
Net debt/equity (%)
|
58.6
|
52.2
|
51.3
|
44.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR4.21
|
|
Target
Price:
|
MYR4.40
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
New greenfield
hospital
|
|
The construction of the proposed KPJ Batu Pahat Specialist
Hospital will be undertaken by Johor Land and then leased back to KPJ
upon completion. This is mildly positive for KPJ, allowing for the
expansion of its network of hospitals while not incurring upfront
development costs and straining its balance sheet. However, KPJ will
bear the capex for fittings and machineries upon completion, which we
estimate will be in 2019. We keep our earnings and SOTP-based TP of
MYR4.40.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
|
Revenue
|
2,639.1
|
2,818.5
|
3,053.6
|
3,382.9
|
|
EBITDA
|
297.9
|
350.9
|
371.0
|
410.7
|
|
Core net profit
|
125.1
|
144.6
|
139.6
|
152.4
|
|
Core EPS (sen)
|
12.3
|
13.9
|
13.2
|
14.5
|
|
Core EPS growth (%)
|
20.5
|
13.3
|
(5.0)
|
9.2
|
|
Net DPS (sen)
|
7.5
|
5.3
|
6.6
|
7.2
|
|
Core P/E (x)
|
34.2
|
30.2
|
31.8
|
29.1
|
|
P/BV (x)
|
3.4
|
3.0
|
2.9
|
2.8
|
|
Net dividend yield (%)
|
1.8
|
1.2
|
1.6
|
1.7
|
|
ROAE (%)
|
na
|
na
|
na
|
na
|
|
ROAA (%)
|
4.1
|
4.0
|
3.5
|
3.7
|
|
EV/EBITDA (x)
|
16.1
|
16.0
|
15.4
|
14.1
|
|
Net debt/equity (%)
|
70.1
|
72.5
|
72.6
|
72.6
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
U.S: Factory production rises for third time in four
months on output of consumer goods and construction materials, a sign the
industry is gradually recovering from a prolonged spell of weakness. The
0.2% gain at factories, which make up 75% of production, followed a 0.5%
decrease the prior month, a Federal Reserve report showed. Total
industrial production, which also includes mines and utilities, increased
0.1%. (Source: Bloomberg)
U.S: Fed’s Fischer warns of risk to running too
high-pressure economy. Federal Reserve Vice Chairman Stanley Fischer sees
limits to how far the U.S. central bank can pursue a strategy to push
unemployment ever lower, an approach characterized as seeking a
high-pressure economy by his boss, Janet Yellen, in a speech last week. “If
you go below the full employment rate, or peoples’ estimates of full
employment, by a couple of tenths of percentage points, I don’t think
there’s any danger in that,” Fischer said in response to questions at an
Economic Club of New York lunch. “But saying we should keep going until
the inflation rate shows us we’re wrong, then you’re going to change too
late.” (Source: Bloomberg)
U.K: London house prices fell for a fifth month in August,
the worst streak for the U.K. capital since the depths of the recession
seven years ago. The 0.6% drop, taking the average value to GBP 580,930
(USD 708,000), followed a 1% fall the previous month, LSL Property
Services and Acadata said. The annual pace of growth has now slowed to
just 2.2%, the weakest since early 2012. The decline is being led by
higher-priced boroughs in central London, according to LSL. (Source:
Bloomberg)
Russia: Credit outlook was raised by Fitch Ratings, the
last major assessor that ranks the country above junk. Fitch lifted the
outlook to stable from negative, keeping the sovereign’s foreign-currency
rating at BBB-, its lowest investment grade and on par with India and
Turkey. That follows a similar move last month by S&P Global Ratings,
which along with Moody’s Investors Service ranks Russia at the highest
junk level. “Russia has implemented a coherent and credible policy
response to the sharp fall in oil prices,” Fitch said. “The strength and
quality of the policy response stands out relative to those of other oil
producers similarly affected by the oil price shock.” (Source: Bloomberg)
|
|
|
|
|
|
|
Other News:
Puncak Niaga: Ventures into oil palm plantation business.
Danau Semesta S/B, a 60%-owned company of Murni Estate S/B, which is a
wholly owned subsidiary of Puncak Niaga, has entered into a sale and
purchase agreement with Shin Yang Holding S/B for the acquisition oil
palm plantation for MYR446.5m in cash. Based on the latest audited
financial statement for the financial year ended June 30, 2015, Danum
Sinar recorded a net loss of MYR3.7m on the back of MYR15.1m in net
assets. Puncak Niaga has been in search of new businesses following the
disposal of its water assets to the Selangor government for MYR1.56b.
(Source: The Sun Daily)
MRCB: EDL sale will give MRCB ‘sound footing,
financially’. The group will use the proceeds from the disposal of its
stake in MRCB LIngkaran Selatan S/B, the concession holder of the Eastern
Dispersal Link (EDL) Expressway in Johor to settle debts and fund future
property developments. MRCB announced that it had receive indications of
interest from PLUS and ZJ Advisory’s client to acquire interest in the
EDL concessionaire. The disposal of the expressway would lower MRCB’s
gearing from current 1.3 to about 0.7 by mid-2017. (Source: The Edge
Financial Daily).
THHE: No default on extended sukuk. The group yesterday
reiterated that it had not defaulted on its sukuk Murabahah of up to
MYR170m, for which it had extended the maturity date. The company said it
had managed to secure the approval of its sukuk holders for the one-year
extension prior to the sukuk maturing, despite only making an
announcement to the effect almost a week after it was due. Yesterday,
THHE’s 70%-owned subsidiary ,THHE Offshore S/B, received yet another
winding-up petition with a claim for MYR2.5m. The loss-making group has
received over 10 winding-up petitions since July this year with claims
amounting to over MYR45m. (Source: The Sun Daily).
|
|
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.