|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR5.12
|
|
Target
Price:
|
MYR5.45
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Credit costs a
wild card
|
|
We think that RHB’s Singapore O&G exposure is
manageable and positively, management does not envisage any capital
raising post MFRS9. Credit cost is a wild card – every 50bp reduction
in our estimates would raise earnings by 2.8%. Our FY18/FY19 earnings
forecasts are marginally raised by 2% to factor in higher non-interest
income. Maintain HOLD but we roll forward our valuation base year to
FY18 on an unchanged P/BV of 0.9x (9.7% ROE), thus raising our TP
marginally to MYR5.45 (+20sen).
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Operating income
|
6,174.7
|
6,193.2
|
6,447.7
|
6,756.0
|
|
Pre-provision profit
|
2,545.0
|
3,094.5
|
3,321.9
|
3,526.8
|
|
Core net profit
|
1,798.4
|
1,874.6
|
2,131.2
|
2,265.8
|
|
Core EPS (MYR)
|
0.69
|
0.49
|
0.53
|
0.57
|
|
Core EPS growth (%)
|
(3.3)
|
(29.7)
|
9.3
|
6.3
|
|
Net DPS (MYR)
|
0.12
|
0.12
|
0.16
|
0.17
|
|
Core P/E (x)
|
7.4
|
10.5
|
9.6
|
9.1
|
|
P/BV (x)
|
1.0
|
0.9
|
0.9
|
0.8
|
|
Net dividend yield (%)
|
2.3
|
2.3
|
3.1
|
3.3
|
|
Book value (MYR)
|
5.11
|
5.42
|
5.62
|
6.05
|
|
ROAE (%)
|
9.9
|
9.5
|
9.6
|
9.7
|
|
ROAA (%)
|
0.8
|
0.8
|
0.9
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR1.59
|
|
Target
Price:
|
MYR1.55
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
1Q17: Earnings
in line
|
|
1Q17 results were within expectations. The slower YoY
earnings was due to lower occupancy rates and negative rental
reversions at the three malls. We nudge down FY17’s earnings forecasts
by 2% but maintain FY18-19’s after factoring in a temporary pullback of
The Mines’ occupancy rate. Our DDM-TP is unchanged at MYR1.55 (cost of
equity: 8.2%) due to marginal impact to our valuation.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
344.8
|
372.6
|
377.0
|
394.2
|
|
Net property income
|
226.4
|
248.2
|
257.5
|
271.0
|
|
Distributable income
|
162.8
|
171.1
|
180.3
|
193.7
|
|
DPU (sen)
|
7.7
|
7.6
|
8.0
|
8.5
|
|
DPU growth (%)
|
(3.5)
|
(2.0)
|
4.9
|
6.6
|
|
Price/DPU(x)
|
20.5
|
21.0
|
20.0
|
18.7
|
|
P/BV (x)
|
1.2
|
1.2
|
1.2
|
1.2
|
|
DPU yield (%)
|
4.9
|
4.8
|
5.0
|
5.3
|
|
ROAE (%)
|
6.3
|
6.1
|
6.3
|
6.8
|
|
ROAA (%)
|
4.1
|
4.0
|
4.1
|
4.4
|
|
Debt/Assets (x)
|
0.3
|
0.3
|
0.3
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACRO RESEARCH
|
|
|
|
|
|
|
|
Sticky jobless rate amid high youth unemployment
by
Suhaimi Ilias
|
|
|
|
|
|
|
|
|
|
|
Unemployment rate stayed at 3.5% for the third
consecutive month in Feb 2017 and have been hovering at 3.4%-3.5%
since Dec 2015. Maintained our full-year average unemployment rate
forecasts of 3.4%.
|
|
|
|
|
|
Suhaimi Ilias
|
|
|
|
Zamros
Dzulkafli
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Index grasping sky
by Tee
Sze Chiah
|
|
|
|
|
|
|
|
|
|
|
FBMKLCI rose 6.67pts to 1,740.60 yesterday, tracking
gains in overnight US markets. Broader market was equally jovial,
with gainers outpacing losers by 552 to 327. A total of 2.78b shares
worth MYR2.45b changed hands. Technically, the bullish Harami candlestick
pattern formed on Monday was followed by a white candle yesterday.
This implies that momentum now favours the bull. However, subdued
performance in overnight US market may pare down interest today.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
Global: IMF raises forecast while warning of protectionism
threat. The emergence of protectionist forces could undermine a modest
brightening of the global growth outlook and is putting severe strain on
the post-World War II economic order, the International Monetary Fund
said. The IMF raised its forecast for global growth to 3.5% this year, up
0.1 percentage point from January the Washington-based fund said in the
latest update to its World Economic Outlook. Expansion will pick up to
3.6% in 2018, unchanged from the projection three months ago. The upgrade
offers a glimmer of optimism following a trend in recent years of the
fund downgrading its growth forecasts. The pickup is being fueled by
“buoyant” financial markets and a long-awaited cyclical recovery in
manufacturing and trade, the IMF said. Still, global growth remains
subdued compared with past decades, and the risk of “trade warfare” is
still hanging over the world economy, IMF chief economist Maurice
Obstfeld warned. (Source: Bloomberg)
U.S: Factory production falls most since August on autos.
Output at U.S. manufacturers fell in March by the most since August as
production of automobiles and parts and business equipment declined,
Federal Reserve data showed. Factory production dropped 0.4%, following a
0.3% rise in February. Total industrial production gained 0.5% on a
record jump in utility output. Capacity utilization, which measures the
amount of a plant that is in use, rose to 76.1% from 75.7% in the prior
month. (Source: Bloomberg)
U.S: Housing starts fell in March to a four-month low as
starts of single-family properties settled back from the strongest pace
in almost a decade. Residential starts decreased 6.8% to a 1.22 million
annualized rate from a 1.30 in February. Permits, a proxy for future
construction, climbed 3.6% to a 1.26 million annualized rate in March.
(Source: Bloomberg)
U.K: May sees election opportunity in Brexit economy’s
sweet spot. The U.K. economy is in a sweet spot and Theresa May’s not
letting it go to waste. The lowest unemployment in more than a decade and
forecast- defying growth give the U.K. prime minister a favorable
backdrop for the snap vote she called. That positive environment was
reinforced just hours after her announcement when the International
Monetary Fund published a huge upgrade to Britain’s outlook. May’s
unexpected gamble on an early national election on June 8 is aimed at
strengthening her hand going into the talks on leaving the European
Union. (Source: Bloomberg)
China: Outbound investment continued to slump in March as
foreign acquisitions remained under tight scrutiny amid efforts to curb
capital outflows. Outward direct investment dropped to USD 7.11b in
March, down 30.1% YoY, the Ministry of Commerce said. ODI fell 48.8% YoY
to USD 20.5b in the first quarter. The slump follows record overseas
purchases last year, when firms snapped up everything from soccer teams
to property. (Source: Bloomberg)
|
|
|
|
|
|
|
Other News:
Property: Property market sees continued softening. The
property market continued to soften in 2016, recording a fall in both
volume and value of transactions with almost all sub-sectors recording
decline in market activity. According to the Property Market Report 2016
launched by the Valuation & Property Services Department yesterday,
transaction volume fell 11.5% to 320,000 while transaction value fell 3%
to MYR145.4b last year. (Source: The Sun Daily)
Vivocom: Bags MYR44.71m worth of contracts. The group has
secured three contract wins with a combined value of MYR44.71m, for the
installation of aluminium and glazing works. Two of the contracts were
awarded by PJD Construction S/B, comprising a MYR6.01m contract for
design, fabrication, supply, delivery and installation of aluminium and
glazing works for a hotel, and another MYR13.5m deal for two blocks of
serviced apartments. Both projects are located in Pahang. Another
contract — worth RM25.2 million — was awarded by Setiakon Builders Sdn
Bhd for aluminium and glazing works for four 40-storey serviced apartment
blocks in Damansara, Selangor. (Source: The Edge Financial Daily)
ML Global: eyes more JVs, land buys to undertake property
projects. ML Global,which is planning to diversify into property development
and investment, says it is in the midst of exploratory talks to buy more
lands and to undertake more joint ventures to develop small to medium
scale projects. The board expects ML GLobal's existing business
activities to be diversified to include property development and property
investment. It anticipates the net profit from the new businesses may
contribute over 25% of the total net profits of ML Global in future
financial years. (Source: The Edge Financial Daily)
|
|
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.