STOCK FOCUS OF THE DAY
OldTown : China export growth intact Buy
We come away OldTown’s briefing feeling assured over a temporary supply chain glitch contributing to soft China growth. Optimal operations have since resumed. We maintain our BUY recommendation TP of RM3.20. Our TP is based on 17.0x CY18F P/E, which is a 20% discount to the simple average PE of its FMCG peers of 23x. We continue to like OldTown for its export-driven growth, market leader as #1 white coffee brand in its core markets and outstanding operational track record.
Others :
Cahya Mata Sarawak : Stronger 2HFY17 ahead Buy
CSC Steel Holdings : A stronger 2HFY17 Buy
Sime Darby : Supported by a slew of exceptional gains Hold
Padini Holdings : Fairly valued for now Hold
Tan Chong Motor : Sixth quarter with a core net loss Hold
DRB-Hicom : Still no clarity on plan to reform Proton Hold
QUICK TAKE
Plantation Sector : News flow for week 21 – 25 August Neutral
NEWS HIGHLIGHTS
Westports Holdings : On RM10bil expansion
AirAsia : Sells Asian Aviation Centre stake to JV partner for RM429.3m
Malakoff Corp : Propsects remain dim
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