SLP is a premium plastic manufacturer that supplies proprietary ultrathin flexible-plastic packaging (FPP) products largely for the consumer industry. Over 60% of SLP's revenue is derived from exports, with Japan and Australia being key markets. With new capacity coming on-stream, SLP plans to penetrate the China market with new products. We initiate coverage with

Other Calls

Coverage Initiation - Pintaras Jaya (BUY, initiate) - Initiation: Rebound on the horizon We believe Pintaras Jaya as a piling and engineering expert has been under investors' radar. We expect strong 3-year EPS CAGR of 46% in FY16-19E, benefiting from the current construction boom. As supply for piling services tightens, we believe Pintaras will be able to secure RM250m new contracts from RM1bn worth of tenders and utilise its idle capacity. We initiate coverage with a BUY call and RM4.62 target price, based on CY18E PER of 15x. Its net cash of RM172m or RM1.00/share should support net DPS of 20 sen (net yield of 5.2%).

Coverage Initiation - SLP Resources (BUY, initiate) - Initiation: a premium plastic manufacturer SLP is a premium plastic manufacturer that supplies proprietary ultrathin flexible-plastic packaging (FPP) products largely for the consumer industry. Over 60% of SLP's revenue is derived from exports, with Japan and Australia being key markets. With new capacity coming on-stream, SLP plans to penetrate the China market with new products. We initiate coverage with a BUY call and TP of RM2.87, based on a 26.0x 2018E PER, for upside potential of 14.7%.

Coverage Initiation - WZ Satu (BUY, initiate) - Initiation: Preferred Partner WZ Satu (WZS) is an established subcontractor and partner of choice for Ekovest, IJM Corp and UEM Builders. Its bauxite mining operation was adversely affected by the mining ban imposed by the government but it is still able to export its stockpile. We expect core EPS growth of 70% yoy in FY17, driven by rising earnings from construction and oil & gas services, and stable mining associate earnings in FY17. We initiate coverage on WZS with a BUY call and target price of RM1.52.

Coverage Initiation - YSP Southeast Asia (BUY, initiate) - Initiation: extra dose of growth from overseas YSP Southeast Asia is one of the top-5 listed local generic manufacturers in Malaysia. We expect increasing healthcare expenditure and growing demand for generic drugs to drive YSP's domestic sales. At the same time, its expansion into the ASEAN region has been progressing well given the much larger population sizes of other countries compared to Malaysia. We forecast a 2016-19E EPS CAGR of 16%. We initiate coverage on YSP Southeast Asia with a BUY rating and TP of RM2.76, based on a 2017E PER of 12x.

For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.