|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Price:
|
MYR4.99
|
|
Target
Price:
|
MYR5.00
|
|
Recommendation:
|
Hold
|
|
|
|
|
|
|
|
|
Nepal clarity
|
|
Ncell’s incremental NPR13.6b deposit (5sen/Axiata share)
with the Large Tax Office hopefully represents the final resolution to
the capital gains tax dispute. Ncell is unlikely to be able to claim
back the amount, so the deposit effectively adds onto the original
acquisition cost. Given Axiata’s share price 8sen correction last week
(-1.6% WoW), we think the event is largely priced-in. Maintain HOLD
with an unchanged MYR5.00 TP.
|
|
|
|
|
|
|
FYE Dec (MYR m)
|
FY15A
|
FY16A
|
FY17E
|
FY18E
|
|
Revenue
|
19,883.5
|
21,565.4
|
24,448.7
|
25,877.3
|
|
EBITDA
|
7,284.1
|
8,012.6
|
9,153.9
|
9,846.5
|
|
Core net profit
|
2,071.0
|
1,418.0
|
1,029.1
|
1,270.3
|
|
Core EPS (sen)
|
23.9
|
16.0
|
11.5
|
14.2
|
|
Core EPS growth (%)
|
(8.6)
|
(33.1)
|
(28.2)
|
23.4
|
|
Net DPS (sen)
|
20.0
|
8.0
|
5.7
|
12.0
|
|
Core P/E (x)
|
20.9
|
31.2
|
43.5
|
35.2
|
|
P/BV (x)
|
1.9
|
1.9
|
1.9
|
1.8
|
|
Net dividend yield (%)
|
4.0
|
1.6
|
1.1
|
2.4
|
|
ROAE (%)
|
11.5
|
2.1
|
4.3
|
5.3
|
|
ROAA (%)
|
3.9
|
2.2
|
1.4
|
1.7
|
|
EV/EBITDA (x)
|
9.4
|
8.0
|
7.3
|
6.7
|
|
Net debt/equity (%)
|
42.3
|
59.1
|
41.6
|
37.8
|
|
|
|
|
|
Chi Wei Tan
|
|
|
|
Syairah Malek
|
|
|
|
|
|
|
MACRO RESEARCH
|
|
|
|
|
|
|
|
Robust growth but off Mar 2017’s pace
by
Suhaimi Ilias
|
|
|
|
|
|
|
|
|
|
|
Growth in exports and imports values remained robust
in Apr 2017 but off the highs in Mar 2017 i.e. +20.6% YoY (Mar 2017:
+24.1% YoY) and +24.7% YoY (Mar 2017: +39.4% YoY) respectively. Trade
surplus widened MoM but down YoY to +MYR8.8b (Mar 2017: +MYR5.4b; Apr
2016: +MYR9.1b).
|
|
|
|
|
|
Suhaimi Ilias
|
|
|
|
Zamros
Dzulkafli
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FBM Emas Shariah Index back in play
by Nik
Ihsan Raja Abdullah
|
|
|
|
|
|
|
|
|
|
|
FBMKLCI skyrocketed yesterday, rising 11.00pts to
close at a new year high of 1,787.95, led by gains in banking stocks.
Market sentiment has also improved, with gainers outpacing losers by
542 to 382. A total of 2.48b shares worth MYR2.64b changed hands. With
FBMKLCI breaching its previous high, we believe a new up leg is
likely underway. Technically, we expect the benchmark index to trade
between 1,785 and 1,795 in the near-term term. Downside supports are
1,760 and 1,749.
|
|
|
|
|
|
Nik Ihsan Raja
Abdullah
|
|
|
|
Tee Sze Chiah
|
|
|
|
|
|
|
|
|
|
|
NEWS
|
|
|
Outside Malaysia:
U.S: Solid expansion pace in services shows firmer
economy. Industries making up the bulk of the U.S. economy continued to
expand at a solid pace in May, adding to signs of steady growth this
quarter, a survey from the Institute for Supply Management showed.
Non-manufacturing index eased to 56.9 (forecast was 57.1) from 57.5 in
April; readings above 50 indicate growth. New orders gauge dropped to a
six-month low of 57.7 from 63.2, which was the highest since August 2005.
Employment measure rebounded to 57.8, the strongest since July 2015, from
an eight-month low of 51.4. While the slower pace of orders represents a
pullback from a more than 10-year high reached a month earlier, the index
level remains consistent with steady, yet uneven, growth. (Source: Bloomberg)
E.U: Euro-area manufacturing and services continued to
expand at the fastest pace in six years, powered by growth in the
region’s two biggest economies - Germany and France. A composite
Purchasing Managers’ Index held at 56.8 in May, unchanged from the
previous month, IHS Markit said. A gauge for services slipped slightly,
while one for manufacturing that was published on June 1 remained
unchanged. “The final PMI readings add to mounting evidence that the euro
zone is enjoying a strong second quarter,” said Chris Williamson, chief
business economist at IHS Markit, adding that they point to a growth rate
of 0.7%. (Source: Bloomberg)
U.K: Inflation, election jitters take a toll on services.
U.K. services activity cooled more than economists expected in May, as
election uncertainty and tightening household budgets weighed on demand.
IHS Markit’s Purchasing Managers Index fell to 53.8 from 55.8 in April.
That’s the weakest since February and below the reading of 55 forecast in
a survey, though still above the 50- mark dividing expansion from
contraction. The report contrasts with stronger-than-expected surveys on
construction and manufacturing last week. Markit said the three snapshots
together point to the economy expanding at a 0.5% rate after growth slumped
to 0.2% in the first three months of the year. (Source: Bloomberg)
Crude Oil: Holds losses near three-week low before U.S.
stockpile data. U.S. inventories probably fell by 3.5 million barrels
last week, a ninth straight decline. Oil surged amid a diplomatic clash
between Saudi Arabia and Qatar, before closing down 0.6% as the spat was
seen having a limited impact on supply and as focus returned to glut
concerns. Brent for August settlement closed at USD 49.47/bbl. (Source:
Bloomberg)
|
|
|
|
|
|
|
Other News:
Ikhmas Jaya: Bags structural works contract for BBCC
development. The company has bagged a MYR188.6m contract to undertake
earthworks, piling, diaphragm and reinforced concrete works at the Bukit
Bintang City Centre (BBCC) mixed development on Jalan Hang Tuah/Jalan
Pudu here, where the former Pudu prison is located. This is the fifth
contract win for the group for the year, bringing its total outstanding
order book to MYR881.5m to date. This year alone, Ikhmas Jaya has secured
contracts worth MYR333.3m. (Source: The Edge Financial Daily)
Puncak Niaga Holdings: Purchase price of plantation asset
revised downwards. The company announced that its wholly-owned unit Murni
Estate Sdn Bhd (MESB) will be paying MYR248.93m, instead of MYR267.9m,
for the deal to purchase the plantation asset owned by Shin Yang Holdings
Sdn Bhd. This is because the purchase price has been revised downwards.
It was also based on the revised value of the land of MYR604.37m (against
MYR735.1m previously) less liabilities of MYR327.78m in Danum Sinar Sdn
Bhd, which owns the plantation assets. The revised purchase price came on
the heels of the signing of a second supplemental sale and purchase
agreement by Puncak Niaga. (Source: The Edge Markets)
Enra Group: To form a JV with Emrail. The company’s
wholly-owned unit Enra Engineering & Construction Sdn Bhd (EEC) will
set up a 51:49 joint venture with railway track solutions provider Emrail
to provide total engineering solutions, asset management and maintenance
services for rail projects in Malaysia. According to Enra, EEC will fund
its initial aforesaid investment in the JV company, through internal
funds. (Source: The Edge Markets)
Vivocom: Gateway Klang work temporarily halted. The
company has confirmed that it has temporarily halted work on the Gateway
Klang project to facilitate ongoing discussions between the project owner
and China’s state-owned China Railway Construction Corp (CRCC). However,
in a filing with Bursa Malaysia, the company said that it has not
received any official letter of termination from CRCC for the project.
According to the company, the temporary halt of the project is not
expected to materially affect the group’s earnings and net assets as it
has other concurrent ongoing projects. (Source: The Edge Financial Daily)
|
|
|
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.