| | | | | 
| | | |
| | |
| | | | | | | | | | | | | | | | Share Price: | MYR1.02 | Target Price: | MYR1.25 | Recommendation: | Buy | | |
|
|
| | | Bottomed? | | 1H17 net profit was within our expectation, as capacity payment shortfall at Tj Bin Energy (TBE) was offset by stronger-than-expected associate contribution. With share price down 26% YTD, and no incremental negatives in the horizon, we think risk-reward is turning favourable. Upgrade to BUY, with a lower TP of MYR1.25 (-5sen). | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 5,302.0 | 6,098.4 | 6,313.8 | 6,058.6 | EBITDA | 2,468.8 | 2,835.6 | 2,720.5 | 2,517.2 | Core net profit | 453.2 | 355.5 | 321.1 | 232.3 | Core EPS (sen) | 9.1 | 7.1 | 6.4 | 4.6 | Core EPS growth (%) | (6.8) | (21.6) | (9.7) | (27.7) | Net DPS (sen) | 7.0 | 7.0 | 7.0 | 5.0 | Core P/E (x) | 11.3 | 14.3 | 15.9 | 22.0 | P/BV (x) | 0.9 | 0.9 | 0.9 | 0.9 | Net dividend yield (%) | 6.9 | 6.9 | 6.9 | 4.9 | ROAE (%) | 9.3 | 6.1 | 5.4 | 4.0 | ROAA (%) | 1.5 | 1.2 | 1.1 | 0.8 | EV/EBITDA (x) | 8.9 | 7.1 | 6.3 | 6.1 | Net debt/equity (%) | 230.4 | 214.1 | 190.6 | 165.2 |
| |
| | | |
| | | | | | | | | | | | | | Share Price: | MYR84.58 | Target Price: | MYR78.00 | Recommendation: | Hold | | |
|
|
| | | 2Q17: In line | | 2Q17 results were in line. While consumer sentiment remains below the neutral region, a positive is that it has seen upticks for two consecutive quarters. Taking cue from that and coupled with new product/variant launches, we believe that Nestle's domestic operations could be supported beyond 1H17. On normalising raw material prices in general, we believe that cost past through could act as a buffer. We understand that NESZ has selectively adjusted upwards product prices since 1 Apr 2017. | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 4,838.0 | 5,063.5 | 5,342.0 | 5,715.9 | EBITDA | 886.0 | 932.0 | 943.9 | 1,013.0 | Core net profit | 588.5 | 598.4 | 638.2 | 673.7 | Core EPS (sen) | 251.0 | 255.2 | 272.2 | 287.3 | Core EPS growth (%) | 6.9 | 1.7 | 6.6 | 5.6 | Net DPS (sen) | 260.0 | 270.0 | 270.5 | 285.5 | Core P/E (x) | 33.7 | 33.1 | 31.1 | 29.4 | P/BV (x) | 28.0 | 30.6 | 30.5 | 30.3 | Net dividend yield (%) | 3.1 | 3.2 | 3.2 | 3.4 | ROAE (%) | 79.5 | 94.0 | 98.3 | 103.1 | ROAA (%) | 24.6 | 24.0 | 24.7 | 24.6 | EV/EBITDA (x) | 19.8 | 19.9 | 21.3 | 19.8 | Net debt/equity (%) | 47.4 | 39.1 | 37.0 | 35.1 |
| |
| | | |
| | | | | | | | | | | | | | Share Price: | MYR2.38 | Target Price: | MYR1.50 | Recommendation: | Sell | | |
|
|
| | | Special dividend but what's next? | | 2Q17 and 1H17 core net profit were below expectations on higher-than-expected fall in print adex. Earnings contribution from the events segment, mostly from Cityneon, however buffered earnings weakness from print. Upon adjusting for a 30sen special DPS, our SOP-based TP is now lower at MYR1.50 but our SELL call is unchanged. We maintain our earnings and DPS estimates for now pending a briefing on 29 Aug 2017. | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 1,019.0 | 932.1 | 800.2 | 743.7 | EBITDA | 206.2 | 162.1 | 119.8 | 113.3 | Core net profit | 131.9 | 69.9 | 47.4 | 50.1 | Core EPS (sen) | 17.9 | 9.5 | 6.4 | 6.8 | Core EPS growth (%) | (12.9) | (47.0) | (32.3) | 5.7 | Net DPS (sen) | 18.0 | 18.0 | 45.0 | 15.0 | Core P/E (x) | 13.3 | 25.1 | 37.1 | 35.1 | P/BV (x) | 1.5 | 1.6 | 1.7 | 1.8 | Net dividend yield (%) | 7.6 | 7.6 | 18.9 | 6.3 | ROAE (%) | 11.6 | 9.7 | 23.9 | 4.9 | ROAA (%) | 7.8 | 4.1 | 3.0 | 3.5 | EV/EBITDA (x) | 6.9 | 9.0 | 12.2 | 13.4 | Net debt/equity (%) | net cash | net cash | net cash | net cash |
| |
| | | |
| | | | | | | | | | | | | | Share Price: | MYR1.12 | Target Price: | MYR1.22 | Recommendation: | Hold | | |
|
|
| | | Results in-line | | THP's 1H17 results were within our expectation. Even though 1H17 net profit met 58% of our full-year estimate, we expect lower 2H17 earnings as seasonally higher 2H17 output may not be sufficient to compensate for lower CPO prices given its relatively high cost of production at estimated MYR2,200/t for 2H17. Maintain HOLD with an unchanged TP of MYR1.22 based on 0.8x trailing P/NTA (-1SD of 3-year mean). | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 455.3 | 562.3 | 532.0 | 569.1 | EBITDA | 110.2 | 172.7 | 195.8 | 203.5 | Core net profit | 13.3 | 46.1 | 47.4 | 49.4 | Core EPS (sen) | 1.5 | 5.2 | 5.4 | 5.6 | Core EPS growth (%) | (61.4) | 247.3 | 2.7 | 4.2 | Net DPS (sen) | 0.0 | 6.0 | 1.6 | 1.7 | Core P/E (x) | 74.5 | 21.5 | 20.9 | 20.0 | P/BV (x) | 0.8 | 0.7 | 0.7 | 0.7 | Net dividend yield (%) | 0.0 | 5.4 | 1.4 | 1.5 | ROAE (%) | 5.0 | 11.0 | 3.3 | 3.4 | ROAA (%) | 0.4 | 1.3 | 1.3 | 1.4 | EV/EBITDA (x) | 23.0 | 14.2 | 12.6 | 11.9 | Net debt/equity (%) | 71.4 | 63.6 | 63.4 | 59.3 |
| |
| | | |
| | | | | | MACRO RESEARCH | | | | | | | Tourism: Quality over quantity
by Chew Hann Wong |
|
|
|
| | | | | | 5M17 total visitor arrivals were flattish at -0.9% YoY. That said, 6M17 spending by foreign credit cardholders surged 21% YoY. With markedly higher tourism receipts per visitor, this indicates higher quality of visitors. Visitor arrivals should be stronger ahead due to the 29th SEA Games and 60th National Day celebration. GENT and AirAsia are BUYs on still attractive valuations, Atlan is a beneficiary of more visitor arrivals from Thailand (5M17: +9.8% YoY). | |
| |
| | | | |
| | | | | | | | FBMKLCI – One More Leg Down
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | FBMKLCI fell 4.60pts to 1,771.62 yesterday amid regional selloff. Sentiment turned negative with losers outpacing gainers by 444 to 379. A total of 1.68b shares worth MYR1.77b changed hands. For the coming 1-2 weeks, investors will turn their attention to corporate earnings but renewed US-North Korea tensions may weigh on its near-term performances. Technically, we expect FBMKLCI to range between 1,765 and 1,775 today. Downside supports are 1,748 and 1,729. | |
| |
| | | | |
| |
| | NEWS | | | Outside Malaysia:
U.S. Job-seekers willing to accept lower wages, Fed survey shows. Job-seekers in the U.S. have in recent months reduced the amount of money they would need to be offered to accept a new position, according to a new survey from the Federal Reserve Bank of New York. The average so-called reservation wage of survey respondents declined to USD 58,000 last month, marking the lowest amount since March 2015, data the New York Fed published showed. Reservation wages -- the lowest wage respondents would be willing to accept for a new job -- play a key role in determining labor supply in modern models of the job market, but empirical data have been scant. The New York Fed began collecting data via its monthly survey of U.S. consumers in early 2014, and shared the data for the first time. (Source: Bloomberg)
U.K: London property headwinds keep asking prices in check. London property sellers are reining in their expectations as demand for homes continues to ease and the slowdown across the market shows few signs of letting up. Asking prices in the city rose 1.6% in August over the past year, Rightmove Plc said. While that's up from the July pace, it's well below a 2014 peak above 20% and only the second time this year the annual rate of increase has topped 1%. On the month, prices fell 1.9% amid a traditional summer lull. The U.K. property market has softened in the past year, with tax changes, Brexit, political uncertainty, slowing economic growth and a squeeze on consumers all cited as reasons. (Source: Bloomberg)
China: Chinese banks' leverage fell for the first time in seven years. The balances of both interbank assets and liabilities at the end of June declined by CNY1.8t (USD270b) from the beginning of the year, the China Banking Regulatory Commission disclosed. The outstanding amount of wealth-management products, especially those sold to other financial institutions, fell by a cumulative CNY1.9t, the regulator said. Interbank lending and shadow-banking products are key targets in China's push to rein in risks associated with its USD28t debt pile, a campaign that has also focused on overseas acquisitions by certain Chinese firms. (Source: Bloomberg)
Taiwan: Global electronics demand lifts export orders to record. Global demand for electronics such as Apple Inc.'s iPhone drove Taiwan's export orders to the highest July level on record. Orders climbed 10.5% YoY to USD 38.7b, the Ministry of Economic Affairs said. The expected release next month of a revamped top model, known for now as the iPhone 8, has bolstered the outlook for overseas shipments. Last week, the government raised its growth forecast for the year to 2.11%, from a previous projection of 2.05%. (Source: Bloomberg)
Thailand: Economy grows at fastest pace in over four years. GDP rose 3.7% YoY in the second quarter from a year ago after expanding 3.3% YoY in the first quarter, the National Economic and Social Development Board said. Thailand's growth outlook has strengthened this year on the back of a recovery in global trade, but domestic demand continues to disappoint. Authorities are struggling to cap gains in the currency after it surged 7.9% against the dollar this year, undermining export competitiveness. The bank has been reluctant to lower interest rates in the face of high consumer debt levels. (Source: Bloomberg) | |
| | | | | Other News:
Scomi Group: To absorb energy, engineering units. Scomi Group (SGB) plans to consolidate Scomi Energy Services and Scomi Engineering into the group to create one listed entity, by swapping new shares of SGB for shares of Scomi Energy and Scomi Engineering, a key move to develop new growth areas in renewable and chemicals. SGB also plans to consolidate every two existing shares into one and have a bonus issue of seven warrants for every 10 consolidated shares. The deal values Scomi Energy at MYR304.46m, and Scomi Engineering at MYR111.14m. The group would be offering three new SGB shares for every five Scomi Energy shares and 10 new SGB shares for every seven Scomi Engineering shares. One SGB warrant will be issued for every nine new SGB shares issued to Scomi Energy shareholders, and every 10 new shares issued to Scomi Engineering shareholders. (Source: The Sun Daily)
HSS Engineers: Gets SC nod for transfer to Main Market. HSS Engineers is set to transfer its listing to the Main Market of Bursa Malaysia Securities after receiving the green-light from the Securities Commission on Monday. After just a year since its listing on the Ace Market, the transfer of the listing to the Main Market would provide a more accurate reflection of the company's track record and growing project portfolio. (Source: The Star)
RHB Bank: RHB Bank, AMMB seek trading halt pending announcement. RHB Bank and AMMB Holdings have requested a suspension of trading in their securities today, pending a material announcement regarding a proposed merger. AMMB is in relation to an announcement made on June 1 in which it received an approval from Bank Negara Malaysia to commence negotiations with RHB Bank for a possible merger of their businesses and undertakings. The approval is valid until Nov 30. (Source: The Edge Financial Daily)
Luxchem Corp: Sets MYR15m for capex. Luxchem Corp, an industrial chemical and related products manufacturer, has allocated between MYR10 and MYR15m for capital expenditure (capex) for financial year 2018. The allocation would be disbursed progressively in stages for a warehouse construction in Pulau Indah, Port Klang. (Source: The Star) | |
| |
| |
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.