STOCK FOCUS OF THE DAY
Cahya Mata Sarawak : A soft patch in FY17, stronger FY18 ahead BUY
We like CMS for: 1) the strong demand for cement and building materials underpinned by various mega infrastructure projects in Sarawak; 2) its steady growth of construction and road maintenance works including the Pan-Borneo Highway project awarded to CMS (JV with Bina Puri Holdings); and 3) sustained demand from its property development both in Kuching and Samalaju and potential land sale of its current undervalued land banks.
We cut our FY17-19F earnings forecast by 11%, 4% and 1% respectively, reduce our FV by 13% to RM4.45 (from RM5.15) (Exhibit 1) but maintain our BUY call, following an analyst briefing yesterday.
Others :
Mah Sing Group : Steady performance BUY
CIMB Group : Gradual improvement in CI ratio HOLD
Cocoaland Hldgs : Higher costs trickling in HOLD
IOI Corporation : Beneficiary of ban on trans-fat in US HOLD
Econpile Hldgs : Still bullish on earnings growth prospects HOLD
Only World Group : Greater earnings visibility tied with Genting HOLD
UMW Holdings : Margin crunch hits core segments HOLD
Stocks On Radar
Mieco Chipboard,Johan Holdings,Sarawak Oil Palms,Dialog Group
NEWS HIGHLIGHTS
AirAsia Bhd : Planning flights from Davao to China, South Korea
Tiong Nam Logistics: Investing RM100mil to expand fleet, strengthen network
Eco World Development : Handing over Aurora and Basalta @ Eco Sky by this year-end
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