|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR9.08
|
Target
Price:
|
MYR10.55
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
Still has upside
potential; maintain BUY
|
|
Earnings were in-line but dividends outperformed with a
special DPS of 6.5sen. We lift FY17-19 DPS estimates by 50%. Utilising
our higher TPs for GENS and GENP moderated by our a tad lower TP for
GENM while ascribing an unchanged 22.5% discount, our new SOP-based TP
for GENT is MYR10.55 (vs MYR9.75). We opine that GENT is ‘cheap’ as it
currently trades at -33% to its SOP/sh valuation or -1SD to its long
term mean (post-1997 average: -21%).
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
18,100.4
|
18,365.8
|
19,634.9
|
21,822.2
|
EBITDA
|
5,393.8
|
6,028.3
|
7,245.2
|
8,307.3
|
Core net profit
|
1,257.6
|
1,536.3
|
2,310.8
|
2,838.2
|
Core FDEPS (sen)
|
34.2
|
39.8
|
55.1
|
66.9
|
Core FDEPS growth(%)
|
(25.6)
|
16.3
|
38.3
|
21.5
|
Net DPS (sen)
|
3.5
|
12.5
|
8.0
|
9.8
|
Core FD P/E (x)
|
26.5
|
22.8
|
16.5
|
13.6
|
P/BV (x)
|
1.0
|
1.0
|
0.9
|
0.9
|
Net dividend yield (%)
|
0.4
|
1.4
|
0.9
|
1.1
|
ROAE (%)
|
4.7
|
6.4
|
6.8
|
7.4
|
ROAA (%)
|
1.5
|
1.7
|
2.5
|
3.0
|
EV/EBITDA (x)
|
8.3
|
7.6
|
6.5
|
5.5
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR5.47
|
Target
Price:
|
MYR5.30
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
Counting our
winnings first; D/G to HOLD
|
|
Earnings were in-line but dividends outperformed with a
special DPS of 7.3sen. While we welcome the special DPS and remain
bullish on the Genting Integrated Tourism Plan (GITP), we opine that
the risk-reward profile for GENM is balanced after its share price
rallied 19% YTD. We leave our FY17/FY18 estimates largely unchanged but
trim our SOP-based valuation by 5sen to MYR5.30 to account for the
special DPS. We downgrade GENM to HOLD only because upside potential
has narrowed.
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
8,395.9
|
8,931.6
|
9,978.2
|
11,572.5
|
EBITDA
|
2,013.1
|
2,394.9
|
2,810.7
|
3,311.6
|
Core net profit
|
1,157.9
|
1,549.0
|
1,726.6
|
2,114.2
|
Core FDEPS (sen)
|
20.4
|
27.3
|
30.4
|
37.2
|
Core FDEPS growth(%)
|
(14.8)
|
33.6
|
11.5
|
22.4
|
Net DPS (sen)
|
7.1
|
16.5
|
10.2
|
11.3
|
Core FD P/E (x)
|
26.8
|
20.1
|
18.0
|
14.7
|
P/BV (x)
|
1.6
|
1.6
|
1.5
|
1.4
|
Net dividend yield (%)
|
1.3
|
3.0
|
1.9
|
2.1
|
ROAE (%)
|
7.1
|
14.8
|
8.4
|
9.7
|
ROAA (%)
|
4.8
|
5.6
|
6.2
|
7.3
|
EV/EBITDA (x)
|
12.3
|
10.6
|
10.8
|
9.0
|
Net debt/equity (%)
|
0.1
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR2.76
|
Target
Price:
|
MYR3.22
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
FY16 results
in-line
|
|
2016 core net profit of MYR1,558m (7.8x YoY) is in-line.
We believe higher industry capacity output will reduce load factor and
yields, which equates to lower profits in 2017. However, we estimate
there is prospect for a 30sen special dividend which works to 11%
yield. We adjust our FY17-18 earnings by +1.8% and +4.8% on latest
guidance on growth and cost parameters. TP has been raised to MYR3.22
(+5 sen) based on an unchanged 10x 2017 PER, on par with global peers.
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
6,297.7
|
6,923.9
|
6,818.8
|
7,419.2
|
EBITDAR
|
2,629.9
|
3,276.6
|
2,739.0
|
2,698.9
|
Core net profit
|
177.7
|
1,557.6
|
1,072.2
|
1,163.6
|
Core EPS (sen)
|
6.4
|
56.0
|
32.4
|
35.1
|
Core EPS growth (%)
|
434.5
|
776.1
|
(42.2)
|
8.5
|
Net DPS (sen)
|
3.0
|
4.0
|
38.0
|
8.0
|
Core P/E (x)
|
43.2
|
4.9
|
8.5
|
7.9
|
P/BV (x)
|
1.7
|
1.2
|
1.2
|
1.1
|
Net dividend yield (%)
|
1.1
|
1.4
|
13.8
|
2.9
|
ROAE (%)
|
12.0
|
36.8
|
15.2
|
13.9
|
ROAA (%)
|
0.9
|
7.2
|
5.1
|
5.6
|
EV/EBITDAR (x)
|
5.2
|
4.6
|
4.2
|
4.8
|
Net debt/equity (%)
|
228.9
|
133.7
|
29.8
|
45.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.80
|
Target
Price:
|
MYR1.90
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
Earnings
recovery in FY17
|
|
Robust outstanding orderbook of MYR4.8b as of end-2016
will provide for medium-term earnings visibility. MYR2b job win target
for this year is not a tall order, as it has already secured MYR449m in
Jan 2017. Our earnings are trimmed by 11%/6% after updating for FY16
results. SCG remains a BUY with a higher TP of MYR1.90 on 15x FY18 PER
(+1SD) as we roll forward valuations. Restoration of its Shariah status
is another catalyst.
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
1,916.9
|
1,788.8
|
2,347.4
|
2,208.5
|
EBITDA
|
178.2
|
188.6
|
209.0
|
226.4
|
Core net profit
|
127.7
|
123.5
|
145.7
|
160.7
|
Core EPS (sen)
|
9.9
|
9.6
|
11.3
|
12.4
|
Core EPS growth (%)
|
11.9
|
(3.3)
|
18.0
|
10.3
|
Net DPS (sen)
|
4.0
|
5.0
|
3.9
|
4.3
|
Core P/E (x)
|
18.2
|
18.8
|
16.0
|
14.5
|
P/BV (x)
|
5.2
|
4.7
|
4.0
|
3.4
|
Net dividend yield (%)
|
2.2
|
2.8
|
2.2
|
2.4
|
ROAE (%)
|
32.6
|
26.2
|
27.0
|
25.1
|
ROAA (%)
|
9.2
|
8.0
|
8.9
|
9.3
|
EV/EBITDA (x)
|
8.7
|
9.9
|
8.6
|
7.7
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
Chew Hann Wong
|
|
|
Adrian Wong
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.54
|
Target
Price:
|
MYR1.95
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
No surprises in
2QFY6/17
|
|
2QFY6/17 revenue and earnings were lifted by higher
overall car production by its key customers (i.e. Perodua, Toyota &
Nissan) - within expectations. Nonetheless, we cut FY18/19 net profit
forecast by 15% each as we raise our USD/MYR forex assumption to 4.20
(from 4.05). Rolling forward our valuations to CY18 on an unchanged
14.5x PER, our MYR1.95 TP is unchanged. Ex-cash (end-Dec 2016 net cash:
MYR93m), valuations remain undemanding at 9x CY17 PER; BUY.
|
|
|
|
|
|
FYE Jun (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
129.5
|
126.3
|
166.4
|
185.0
|
EBITDA
|
27.7
|
22.6
|
29.6
|
35.6
|
Core net profit
|
17.9
|
16.5
|
20.7
|
24.7
|
Core EPS (sen)
|
9.5
|
8.8
|
11.0
|
13.1
|
Core EPS growth (%)
|
23.8
|
(8.0)
|
25.4
|
19.4
|
Net DPS (sen)
|
4.4
|
4.0
|
5.5
|
6.6
|
Core P/E (x)
|
16.2
|
17.6
|
14.0
|
11.7
|
P/BV (x)
|
4.1
|
1.8
|
1.7
|
1.6
|
Net dividend yield (%)
|
2.9
|
2.6
|
3.6
|
4.3
|
ROAE (%)
|
27.6
|
12.7
|
12.7
|
14.2
|
ROAA (%)
|
17.5
|
11.3
|
11.0
|
12.2
|
EV/EBITDA (x)
|
na
|
9.4
|
7.2
|
5.9
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.91
|
Target
Price:
|
MYR2.18
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
Beats street’s
expectations
|
|
Inari’s 1HFY6/17 core earnings came in marginally ahead at
51% of our street-high core net profit forecast for FY17; 57% of
street’s. Pending an analyst briefing today, we keep our FY17 net
profit forecast unchanged by lift our FY18/19 net profit forecast by
5%/9% to account for higher USD/MYR forex of 4.20 (from 4.05). Rolling
forward our valuations to CY18 on a lower PER peg of 16.5x (from 17.5x;
+1SD) on fully-diluted EPS of 13.1sen, we derive a TP of MYR2.18 (+8
sen). Maintain BUY on Inari.
|
|
|
|
|
|
FYE Jun (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
933.1
|
1,040.9
|
1,405.8
|
1,730.5
|
EBITDA
|
187.3
|
203.0
|
284.7
|
357.7
|
Core net profit
|
147.7
|
155.8
|
213.7
|
263.7
|
Core EPS (sen)
|
7.6
|
7.8
|
10.1
|
12.5
|
Core EPS growth (%)
|
18.5
|
1.7
|
30.9
|
23.4
|
Net DPS (sen)
|
3.6
|
4.2
|
4.6
|
5.6
|
Core P/E (x)
|
25.0
|
24.6
|
18.8
|
15.3
|
P/BV (x)
|
6.9
|
5.6
|
5.0
|
4.2
|
Net dividend yield (%)
|
1.9
|
2.2
|
2.4
|
3.0
|
ROAE (%)
|
38.4
|
24.3
|
28.8
|
30.2
|
ROAA (%)
|
22.1
|
18.2
|
22.4
|
23.6
|
EV/EBITDA (x)
|
12.4
|
13.8
|
13.6
|
10.7
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR2.21
|
Target
Price:
|
MYR2.70
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
FMCG to lead
growth
|
|
Moving forward, FMCG is expected to spearhead growth,
riding on its expansion of export sales to China, which is still
largely a tea drinking nation. F&B is expected to post muted growth
in the near term on still stiff competition. We maintain our earnings
forecasts and BUY call but raise our TP to MYR2.70 (+45sen) on a 17.8x
PER (+1 std dev above mean) on the improved earnings outlook (14.8x
mean FY18 PER previously). To note that the Malaysian consumer sector
trades at 21-22x PER CY17.
|
|
|
|
|
|
FYE Mar (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
397.7
|
393.4
|
438.7
|
480.3
|
EBITDA
|
82.9
|
84.7
|
102.1
|
107.9
|
Core net profit
|
51.0
|
55.3
|
65.7
|
70.4
|
Core EPS (sen)
|
11.2
|
11.9
|
14.2
|
15.2
|
Core EPS growth (%)
|
4.2
|
6.1
|
18.8
|
7.2
|
Net DPS (sen)
|
6.0
|
9.0
|
7.8
|
8.4
|
Core P/E (x)
|
19.7
|
18.5
|
15.6
|
14.5
|
P/BV (x)
|
3.0
|
2.8
|
2.6
|
2.4
|
Net dividend yield (%)
|
2.7
|
4.1
|
3.5
|
3.8
|
ROAE (%)
|
14.2
|
15.0
|
17.4
|
17.3
|
ROAA (%)
|
11.8
|
12.5
|
14.0
|
14.0
|
EV/EBITDA (x)
|
8.2
|
6.4
|
8.4
|
7.7
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR6.70
|
Target
Price:
|
MYR6.90
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
Seeing some
light
|
|
While the competition has stabilised, ASP may only improve
meaningfully from 2H17 onwards as mega projects accelerate. We keep our
2017 EPS forecasts unchanged but raise our 2018-19 EPS by 11%/12% as we
raise our ASP assumption. Rolling forward our valuation to 2018, our TP
is raised to MYR6.90 (from MYR4.00) based on an unchanged 26x PER
(mean). We also expect LMC to resume its quarterly dividend payout upon
the improvement in 2017 earnings. Upgrade to HOLD (from SELL).
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
2,750.8
|
2,552.2
|
2,811.7
|
3,137.5
|
EBITDA
|
509.4
|
302.1
|
433.3
|
545.9
|
Core net profit
|
251.0
|
84.9
|
148.1
|
226.1
|
Core EPS (sen)
|
29.5
|
10.0
|
17.4
|
26.6
|
Core EPS growth (%)
|
(1.9)
|
(66.2)
|
74.3
|
52.7
|
Net DPS (sen)
|
31.0
|
5.0
|
16.6
|
25.3
|
Core P/E (x)
|
22.7
|
67.0
|
38.4
|
25.2
|
P/BV (x)
|
1.8
|
1.9
|
1.9
|
1.8
|
Net dividend yield (%)
|
4.6
|
0.7
|
2.5
|
3.8
|
ROAE (%)
|
8.1
|
2.5
|
4.8
|
7.4
|
ROAA (%)
|
6.0
|
2.0
|
3.4
|
5.1
|
EV/EBITDA (x)
|
14.9
|
20.7
|
13.3
|
10.4
|
Net debt/equity (%)
|
1.0
|
4.6
|
2.7
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR4.53
|
Target
Price:
|
MYR5.00
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
A difficult year
|
|
FY16 results were below expectations as depreciation again
surprised on the upside. Dividends for both 2016 and 2017 were
unexpectedly lowered on prudent grounds. Celcom is exhibiting signs of
improved operational momentum, although it remains to be seen if this
is sustainable. Maintain HOLD with a higher MYR5.00 TP (+9%).
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
19,883.5
|
21,565.4
|
24,348.1
|
25,771.5
|
EBITDA
|
7,284.1
|
8,012.6
|
9,090.5
|
9,780.9
|
Core net profit
|
2,071.0
|
1,418.0
|
1,009.1
|
1,308.2
|
Core EPS (sen)
|
23.9
|
16.0
|
11.2
|
14.6
|
Core EPS growth (%)
|
(8.6)
|
(33.1)
|
(29.6)
|
29.6
|
Net DPS (sen)
|
20.0
|
8.0
|
5.6
|
12.4
|
Core P/E (x)
|
19.0
|
28.4
|
40.3
|
31.1
|
P/BV (x)
|
1.7
|
1.7
|
1.7
|
1.7
|
Net dividend yield (%)
|
4.4
|
1.8
|
1.2
|
2.7
|
ROAE (%)
|
11.5
|
2.1
|
4.2
|
5.4
|
ROAA (%)
|
3.9
|
2.2
|
1.4
|
1.8
|
EV/EBITDA (x)
|
9.4
|
8.0
|
6.9
|
6.3
|
Net debt/equity (%)
|
42.3
|
59.1
|
43.2
|
39.8
|
|
|
|
|
Chi Wei Tan
|
|
|
Syairah Malek
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR3.42
|
Target
Price:
|
MYR3.60
|
Recommendation:
|
Buy
|
|
|
|
|
|
|
|
9MFY17: Slight
shortfall
|
|
3QFY3/17 core earnings came in below our estimates largely
due to weaker earnings from the property division and Kuantan Port as a
result of the moratorium on bauxite ban. We lower earnings forecasts
for FY17-19 by 3-6% after adjusting for i) lower margins for property
and ii) lower cargo throughput assumptions for Kuantan Port. No change
to our SOP-TP of MYR3.60. Maintain BUY.
|
|
|
|
|
|
FYE Mar (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
5,448.3
|
5,128.2
|
6,634.8
|
7,562.7
|
EBITDA
|
1,434.8
|
1,166.7
|
1,152.9
|
1,377.2
|
Core net profit
|
530.2
|
509.3
|
551.3
|
680.1
|
Core EPS (sen)
|
16.3
|
14.3
|
15.4
|
19.0
|
Core EPS growth (%)
|
(15.0)
|
(12.5)
|
7.9
|
23.3
|
Net DPS (sen)
|
7.5
|
10.0
|
7.0
|
7.0
|
Core P/E (x)
|
21.0
|
24.0
|
22.2
|
18.0
|
P/BV (x)
|
1.3
|
1.4
|
1.3
|
1.2
|
Net dividend yield (%)
|
2.2
|
2.9
|
2.0
|
2.0
|
ROAE (%)
|
6.3
|
9.1
|
6.0
|
7.1
|
ROAA (%)
|
2.8
|
2.6
|
2.7
|
3.3
|
EV/EBITDA (x)
|
12.0
|
15.4
|
15.6
|
13.0
|
Net debt/equity (%)
|
45.2
|
40.4
|
41.9
|
37.9
|
|
|
|
|
Chew Hann Wong
|
|
|
Adrian Wong
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR6.15
|
Target
Price:
|
MYR5.80
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
Healthy topline
growth, but start-up costs hit core earnings
|
|
We cut our EPS by 6-16% to account for higher start-up
costs for new hospitals. Maintain HOLD, reduce SOTP-based TP by 11% to
MYR6.52. IHH is not cheap, trading at 60x FY17E PE. FY16 core earnings
met 101% of our FY16E, but just 91% of the consensus. Core earnings in
FY16 fell 4% YoY due to start-up costs for the upcoming Hong Kong
Hospital and higher net financing costs after several acquisitions. We
expect the costs to be a drag on earnings with FY17E core earnings
flat.
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
8,455.5
|
10,021.9
|
11,608.1
|
13,501.7
|
EBITDA
|
2,218.7
|
2,188.9
|
2,553.6
|
2,990.3
|
Core net profit
|
899.2
|
866.0
|
855.2
|
1,105.9
|
Core FDEPS (sen)
|
10.9
|
10.5
|
10.3
|
13.4
|
Core FDEPS growth(%)
|
14.5
|
(4.3)
|
(1.2)
|
29.3
|
Net DPS (sen)
|
3.0
|
3.0
|
3.0
|
3.0
|
Core FD P/E (x)
|
56.3
|
58.8
|
59.5
|
46.1
|
P/BV (x)
|
2.3
|
2.3
|
2.2
|
2.2
|
Net dividend yield (%)
|
0.5
|
0.5
|
0.5
|
0.5
|
ROAE (%)
|
4.5
|
2.8
|
3.8
|
4.8
|
ROAA (%)
|
2.8
|
2.4
|
2.3
|
2.9
|
EV/EBITDA (x)
|
27.4
|
27.0
|
22.9
|
19.2
|
Net debt/equity (%)
|
19.3
|
21.1
|
23.0
|
16.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR3.39
|
Target
Price:
|
MYR3.54
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
FY17 earnings
beat expectations
|
|
SPSB’s 2016 net profit of MYR808m was above expectations
due to stronger earnings recognition from Battersea Power Station (BPS)
phase 1. SPSB has locked in MYR3.8b in property sales in 2016 - above
expectations. We lower our earnings forecasts by 3-6%. Our RNAV-TP is
largely unchanged at MYR 3.54 (-5 sen; on unchanged 0.7x P/RNAV). We
maintain HOLD.
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
6,746.3
|
4,957.2
|
5,994.9
|
3,950.1
|
EBITDA
|
2,063.3
|
1,441.4
|
1,318.9
|
869.0
|
Core net profit
|
918.3
|
808.0
|
857.1
|
450.8
|
Core EPS (sen)
|
35.7
|
28.5
|
27.0
|
14.2
|
Core EPS growth (%)
|
140.1
|
(20.0)
|
(5.4)
|
(47.4)
|
Net DPS (sen)
|
23.0
|
20.0
|
14.9
|
7.2
|
Core P/E (x)
|
9.5
|
11.9
|
12.6
|
23.9
|
P/BV (x)
|
0.9
|
0.8
|
0.8
|
0.7
|
Net dividend yield (%)
|
6.8
|
5.9
|
4.4
|
2.1
|
ROAE (%)
|
13.9
|
9.7
|
9.1
|
4.7
|
ROAA (%)
|
6.2
|
4.6
|
4.2
|
2.0
|
EV/EBITDA (x)
|
4.9
|
7.6
|
10.9
|
18.0
|
Net debt/equity (%)
|
17.2
|
16.0
|
29.8
|
40.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR20.58
|
Target
Price:
|
MYR23.00
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
A tame finish
|
|
PTG’s FY16 net profit was in-line, albeit aided by
lower-than-expected taxes. A results call will be held this afternoon,
whereby investors’ attention would likely centre on 1) the directional
trend for maintenance activities in 2017, and 2) updates relating to
TPA negotiations. Maintain HOLD with a lower TP or MYR23.00 (-4%).
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
4,456.0
|
4,561.3
|
4,540.4
|
5,146.0
|
EBITDA
|
2,967.2
|
2,968.1
|
3,038.7
|
3,403.5
|
Core net profit
|
1,749.6
|
1,747.2
|
1,681.7
|
1,951.1
|
Core EPS (sen)
|
88.4
|
88.3
|
85.0
|
98.6
|
Core EPS growth (%)
|
(2.0)
|
(0.1)
|
(3.8)
|
16.0
|
Net DPS (sen)
|
60.0
|
62.0
|
59.5
|
69.0
|
Core P/E (x)
|
23.3
|
23.3
|
24.2
|
20.9
|
P/BV (x)
|
3.6
|
3.4
|
3.3
|
3.1
|
Net dividend yield (%)
|
2.9
|
3.0
|
2.9
|
3.4
|
ROAE (%)
|
18.1
|
14.9
|
13.8
|
15.3
|
ROAA (%)
|
12.7
|
11.3
|
10.0
|
11.2
|
EV/EBITDA (x)
|
15.1
|
14.4
|
13.6
|
12.0
|
Net debt/equity (%)
|
net cash
|
4.0
|
4.0
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.05
|
Target
Price:
|
MYR1.10
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
4Q16: Below
expectations
|
|
4Q16 and 2016 core net profit was below expectations but
2016 DPS of 8sen positively surprised. We also believe MPR’s cost
savings will be able to offset weaker earnings moving into 2017. We
still expect +5% adex growth for both FTA TV and print adex. We
maintain our HOLD call, earnings and DPS estimates for now. Our TP is
unchanged at MYR1.10 based on 15x FY17 P/E (mean). Dividend yields of
~6% should buoy further downside in share price.
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
1,427.7
|
1,289.0
|
1,401.2
|
1,479.6
|
EBITDA
|
327.0
|
163.6
|
187.9
|
199.4
|
Core net profit
|
138.7
|
38.7
|
81.9
|
92.9
|
Core EPS (sen)
|
12.5
|
3.5
|
7.4
|
8.4
|
Core EPS growth (%)
|
(2.4)
|
(72.1)
|
111.5
|
13.4
|
Net DPS (sen)
|
10.0
|
8.0
|
6.0
|
7.0
|
Core P/E (x)
|
8.4
|
30.1
|
14.2
|
12.5
|
P/BV (x)
|
0.7
|
0.8
|
0.8
|
0.8
|
Net dividend yield (%)
|
9.5
|
7.6
|
5.7
|
6.7
|
ROAE (%)
|
8.6
|
(3.8)
|
5.6
|
6.3
|
ROAA (%)
|
5.8
|
1.7
|
4.0
|
4.8
|
EV/EBITDA (x)
|
4.0
|
7.5
|
5.7
|
5.4
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
Samuel Yin Shao
Yang
|
|
|
Jade Tam
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR4.40
|
Target
Price:
|
MYR4.05
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
2016 results
within expectations
|
|
FY16 net profit closed at a 5-year low following a plunge
in demand across all geographical segments. We expect suppressed
2Q/3Q17 earnings on weak volumes for the existing sensors and high
depreciation from capex for the new sensors (mass production from mid-2Q17),
but with a strong rebound in 2H as orders from its sensor client come
through. No changes to our earnings forecasts; valuations are fair (15x
CY18 EPS) for now. Maintain HOLD on unchanged TP of MYR4.05 (14x CY18
EPS).
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
343.7
|
215.3
|
341.2
|
426.9
|
EBITDA
|
96.3
|
51.2
|
87.6
|
124.9
|
Core net profit
|
71.3
|
25.7
|
48.5
|
81.7
|
Core FDEPS (sen)
|
25.3
|
9.1
|
17.1
|
28.8
|
Core FDEPS growth(%)
|
10.4
|
(64.1)
|
88.7
|
68.3
|
Net DPS (sen)
|
20.0
|
20.0
|
12.0
|
20.2
|
Core FD P/E (x)
|
17.4
|
48.5
|
25.7
|
15.3
|
P/BV (x)
|
4.1
|
4.7
|
4.5
|
4.1
|
Net dividend yield (%)
|
4.5
|
4.5
|
2.7
|
4.6
|
ROAE (%)
|
24.4
|
9.1
|
17.9
|
28.1
|
ROAA (%)
|
19.9
|
7.7
|
15.1
|
23.6
|
EV/EBITDA (x)
|
17.3
|
16.0
|
12.8
|
8.8
|
Net debt/equity (%)
|
net cash
|
net cash
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.41
|
Target
Price:
|
MYR1.53
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
Lower sales
target for 2017
|
|
Tambun Indah (TI)’s FY16 net profit of MYR107m (+13% YoY)
was slightly above our expectations. FY16 actual sales of MYR229m
(-13%) was however below expectations. We lower our FY17/18 earnings
forecasts by 11%/18% to factor in a lower sales assumption for 2017. We
also introduce our 2019 forecast. Our RNAV-TP is largely unchanged at
MYR1.54 (+1sen) based on an unchanged 50% discount to RNAV. HOLD.
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY14A
|
FY15A
|
FY16E
|
FY17E
|
Revenue
|
466.8
|
367.7
|
408.7
|
329.0
|
EBITDA
|
139.4
|
129.0
|
132.6
|
105.0
|
Core net profit
|
102.1
|
94.4
|
100.6
|
80.5
|
Core FDEPS (sen)
|
24.3
|
22.3
|
23.3
|
18.6
|
Core FDEPS growth(%)
|
47.3
|
(8.3)
|
4.7
|
(20.0)
|
Net DPS (sen)
|
9.7
|
9.0
|
9.4
|
7.5
|
Core FD P/E (x)
|
5.8
|
6.3
|
6.1
|
7.6
|
P/BV (x)
|
1.5
|
1.3
|
1.2
|
1.1
|
Net dividend yield (%)
|
6.9
|
6.4
|
6.7
|
5.3
|
ROAE (%)
|
na
|
na
|
na
|
na
|
ROAA (%)
|
17.6
|
13.2
|
12.4
|
9.4
|
EV/EBITDA (x)
|
5.2
|
4.7
|
4.1
|
5.0
|
Net debt/equity (%)
|
9.4
|
1.9
|
net cash
|
net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.51
|
Target
Price:
|
MYR1.50
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
On course
|
|
1HFY17 results were in line with ours, but slightly below
consensus. The idle Malaysia IPP continues to post losses while
PowerSeraya’s profitability appears to have recovered back to 1HFY16
levels. We continue to expect a 10sen DPS in FY17 despite a relatively
challenging earnings outlook and upcoming capex commitments. Maintain
HOLD with an unchanged TP of MYR1.50.
|
|
|
|
|
|
FYE Jun (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
11,858.1
|
10,240.5
|
9,359.9
|
9,840.3
|
EBITDA
|
3,112.9
|
2,717.8
|
2,599.7
|
2,835.9
|
Core net profit
|
894.9
|
872.0
|
697.9
|
857.9
|
Core FDEPS (sen)
|
12.3
|
11.2
|
9.0
|
11.1
|
Core FDEPS growth(%)
|
(35.2)
|
(8.5)
|
(20.0)
|
22.9
|
Net DPS (sen)
|
10.0
|
10.0
|
10.0
|
10.0
|
Core FD P/E (x)
|
12.3
|
13.4
|
16.8
|
13.6
|
P/BV (x)
|
0.9
|
0.9
|
0.9
|
0.9
|
Net dividend yield (%)
|
6.6
|
6.6
|
6.6
|
6.6
|
ROAE (%)
|
8.4
|
8.8
|
5.6
|
6.9
|
ROAA (%)
|
2.1
|
2.0
|
1.6
|
2.0
|
EV/EBITDA (x)
|
8.7
|
9.3
|
10.3
|
9.6
|
Net debt/equity (%)
|
138.5
|
115.6
|
122.7
|
124.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR6.48
|
Target
Price:
|
MYR6.35
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
Clouded by
higher input prices
|
|
4Q16 earnings improved QoQ but were still below
expectations. While we understand that the industry players have raised
their ASPs to pass on the higher rubber input prices, we think Kossan’s
near-term earnings could still be subdued due to the time lag effect.
We maintain our 2017-18 EPS forecasts and introduce our 2019 numbers.
Maintain our HOLD call and TP of MYR6.35 (18x 2017 PER; mean).
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
Revenue
|
1,635.9
|
1,668.3
|
2,072.7
|
2,333.7
|
EBITDA
|
343.2
|
291.8
|
384.2
|
425.6
|
Core net profit
|
203.3
|
170.9
|
224.9
|
254.9
|
Core EPS (sen)
|
31.8
|
26.7
|
35.2
|
39.9
|
Core EPS growth (%)
|
41.4
|
(15.9)
|
31.6
|
13.4
|
Net DPS (sen)
|
12.0
|
13.4
|
17.6
|
19.9
|
Core P/E (x)
|
20.4
|
24.2
|
18.4
|
16.3
|
P/BV (x)
|
4.2
|
3.8
|
3.5
|
3.1
|
Net dividend yield (%)
|
1.9
|
2.1
|
2.7
|
3.1
|
ROAE (%)
|
nm
|
nm
|
nm
|
nm
|
ROAA (%)
|
14.8
|
11.5
|
13.9
|
14.0
|
EV/EBITDA (x)
|
17.4
|
14.7
|
11.1
|
10.1
|
Net debt/equity (%)
|
1.7
|
4.8
|
8.1
|
9.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Share
Price:
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MYR1.20
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Target
Price:
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MYR1.22
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Recommendation:
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Hold
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Lifted by
disposal gains
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2016 headline profit was lifted by land disposal gain
which led to a 6sen final DPS surprise. Otherwise, core net profit was
within our expectation but above consensus. Looking forward, we expect
a 3% earnings growth in 2017 underpinned by output recovery. But as THP
trades at 22x FY17 PER, it remains a HOLD with a revised TP of MYR1.22
(previously MYR1.20) on 0.8x trailing P/NTA (-1SD of 3-year mean).
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FYE Dec (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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455.3
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562.3
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532.0
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569.1
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EBITDA
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110.2
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172.7
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195.8
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203.5
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Core net profit
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13.3
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46.1
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47.4
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49.4
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Core EPS (sen)
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1.5
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5.2
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5.4
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5.6
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Core EPS growth (%)
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(61.4)
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247.3
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2.7
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4.2
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Net DPS (sen)
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0.0
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6.0
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1.6
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1.7
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Core P/E (x)
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79.8
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23.0
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22.4
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21.5
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P/BV (x)
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0.8
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0.7
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0.7
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0.7
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Net dividend yield (%)
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0.0
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5.0
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1.3
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1.4
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ROAE (%)
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5.0
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11.0
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3.3
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3.4
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ROAA (%)
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0.4
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1.3
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1.3
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1.4
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EV/EBITDA (x)
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23.0
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14.2
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13.0
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12.2
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Net debt/equity (%)
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71.4
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63.6
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63.4
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59.3
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Chee Ting Ong
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Amirah Azmi
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MACRO RESEARCH
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Hang Seng Index Trend Assessment
by Tee
Sze Chiah
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FBMKLCI fell 3.60pts to close at 1,704.48 yesterday.
Sentiment in the broader market was rather bearish with losers
outpacing gainers by 555 to 328. Trading volume of 2.79b worth
MYR2.65b was recorded. As expected, FBMKLCI was unable to sustain its
previous day’s rebound given the amount of selling pressure that
resurfaced. We continue to believe that the benchmark index may head
lower, possibly to test the 1,700 psychological level. Downside
supports are pegged at 1,700 and 1,693.
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NEWS
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Outside Malaysia:
U.S: Claims for jobless benefits point to firm job market.
The number of Americans filing for unemployment benefits increased last
week, while staying within a range that shows subdued firings. Jobless
claims rose by 6,000 to 244,000 in the week ended Feb. 18, a report from
the Labor Department showed. The four-week average declined to the lowest
level since July 1973. A tight labor market and growing economy are
prompting companies to hold on to employees, setting the stage for larger
wage gains. (Source: Bloomberg)
Germany: Domestic demand drove growth in 4Q 2016 as trade
damped Europe’s largest economy. Private and government spending
contributed 0.2 percentage point each to growth, the Federal Statistics
Office said. Net trade subtracted 0.4 percentage point from output, with
a 3.1% increase in imports outpacing a 1.8% gain in exports. Gross
domestic product rose a seasonally-adjusted 0.4% in the three months
through December. Germany’s performance in the fourth quarter suggests
the economy is sturdy enough to cope with challenges that may arise from
national elections, Brexit, and a more protectionist U.S. administration.
Unemployment is at a record low and business confidence is rising, and
the Bundesbank has cited a “very dynamic” order intake as a factor
driving future momentum. (Source: Bloomberg)
U.K: Net migration fell to its lowest in more than two
years, providing a boost for Prime Minister Theresa May as she seeks to
reduce the number of foreigners coming to Britain. Those arriving to live
or study for a minimum of one year outnumbered those leaving by 273,000
in the year through September, the Office for National Statistics in
London said. That’s down from a near-record 335,000 in the year prior the
June vote to leave the European Union. Net migration from other European
Union nations fell to 165,000. May has promised tighter controls on
immigration as she prepares to trigger the start of Brexit negotiations
in the next five weeks. (Source: Bloomberg)
S. Korea: Feb 2017 consumer confidence rises to 94.4 from
93.3. Households’ inflation expectation for next 12 months fell to 2.7%,
Bank of Korea says in a statement. Survey based on responses from 2,039
households across the nation, conducted between Feb. 10-17. A reading
below 100 indicates that pessimists outnumber optimists. (Source:
Bloomberg)
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Other News:
Pos Malaysia: 3Q pre-tax profit doubled. The company saw
its net profit soar 55% y-o-y to MYR34.8m in its third financial quarter
ended Dec 31, 2016 (3QFY17), from MYR22.5m, thanks to the courier
segment's higher contribution to the postal group's bottomline. Quarterly
revenue climbed 28.5% to MYR635.7m as it received a contribution of
MYR169.3m from its logistics business pursuant to the acquisition of Pos
Aviation Sdn Bhd. For the cumulative nine months period ended Dec 31,
2016 (9MFY17), net profit surged 50.6% to MYR73.4m or 11.56 sen per
share, from MYR 48.7m or 9.08 sen per share in the previous corresponding
period. Revenue expanded 12.7% to MYR 1.4b from MYR 1.3b a year ago.
(Source: The Edge Financial Daily)
Unisem : Proposed 4 sen dividend. saw its fourth quarter
net profit fall 15% to MYR 51.3m due to higher tax expense arising from
reversal of deferred tax assets. The semiconductor device maker’s
quarterly revenue grew 2.9% to MYR 362.1m, with full-year revenue rising
5% to MYR 1.32b due to an improvement in all segments. The company
proposed a final dividend of four sen after it recorded a 4.3% increase
in its net profit of MYR 162.3m in FY16 from MYR 155.5m a year earlier.
(Source: The Edge Financial Daily)
IGB: Goldis offers to buy rest of shares for MYR3/share.
Private equity investment house Goldis Bhd yesterday offered to pay IGB
Corp Bhd shareholders MYR3 a share, in either cash or a combination of
cash and shares in Goldis, in a bid to delist IGB and make it a wholly
owned subsidiary. The offer is a 19% premium to IGB’s share price which
last traded at MYR2.52 yesterday, while Goldis’ illiquid shares closed
unchanged at MYR2.50 apiece. Goldis said the move is to eliminate its
holding company discount on IGB. IGB is currently a 73.43%-owned subsidiary
of Goldis. Goldis explained the strategic initiative will provide it with
greater liberty to plan and decide on the strategic and business
directions of IGB, and therefore increase its investments in a profitable
group. (Source: The Sun Daily)
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