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| | | | | | | | | | | | | | | | Share Price: | MYR2.30 | Target Price: | MYR2.30 | Recommendation: | Hold | | |
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| | | Secures MYR582m PPA1M contract | | SCG's latest job win positively lifts its outstanding orderbook to MYR4.7b, enhancing medium-term earnings visibility. We raise our job win assumption for FY17 to MYR2b (from MYR1b) with SCG having already secured MYR1.57b YTD 2017. Assuming the additional MYR1b of job wins only contribute to earnings from FY18 onwards, our FY18/FY19 earnings forecasts are raised by 14%/34%. SCG remains a HOLD with unchanged TP of MYR2.30 pegged to lower 16x (+1 SD) FY18 PER (from 18x). | | |
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| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 1,916.9 | 1,788.8 | 2,347.4 | 2,413.4 | EBITDA | 178.2 | 188.3 | 211.2 | 258.0 | Core net profit | 127.2 | 123.5 | 146.2 | 185.8 | Core EPS (sen) | 9.8 | 9.6 | 11.3 | 14.4 | Core EPS growth (%) | 11.4 | (2.9) | 18.4 | 27.1 | Net DPS (sen) | 4.0 | 5.0 | 4.0 | 5.0 | Core P/E (x) | 23.4 | 24.1 | 20.3 | 16.0 | P/BV (x) | 6.6 | 6.0 | 5.1 | 4.2 | Net dividend yield (%) | 1.7 | 2.2 | 1.7 | 2.2 | ROAE (%) | 32.4 | 26.2 | 27.0 | 28.6 | ROAA (%) | 9.5 | 8.2 | 8.0 | 8.7 | EV/EBITDA (x) | 8.7 | 9.9 | 11.3 | 8.8 | Net debt/equity (%) | net cash | net cash | net cash | net cash |
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| | | | | | | | | | | | | | Share Price: | MYR2.63 | Target Price: | MYR2.72 | Recommendation: | Hold | | |
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| | | Less content cost boosted 2QFY1/18 earnings | | Earnings outperformed on less-than-expected content cost. That said, we gather that Astro continues to churn Pay-TV subscribers. Hence, we are wary that the former will eventually be moderated by the latter. On that note, we raise our FY18 earnings estimates by 12% but FY19/FY20 earnings estimates by only 5%/5%. We also raise our end-FY18 SOP TP by 5% to MYR2.72. All in all, we are not inclined to re-rate Astro when earnings growth has been driven by content cost rationalisation. | | |
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| | FYE Jan (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 5,475.4 | 5,612.6 | 5,719.8 | 5,690.9 | EBITDA | 1,940.6 | 1,816.5 | 2,049.9 | 2,034.4 | Core net profit | 662.0 | 663.4 | 881.7 | 910.3 | Core FDEPS (sen) | 12.7 | 12.7 | 16.9 | 17.4 | Core FDEPS growth(%) | 27.3 | 0.2 | 32.5 | 3.2 | Net DPS (sen) | 12.0 | 12.5 | 12.5 | 12.9 | Core FD P/E (x) | 20.7 | 20.7 | 15.6 | 15.1 | P/BV (x) | 22.8 | 22.0 | 16.0 | 12.5 | Net dividend yield (%) | 4.6 | 4.8 | 4.8 | 4.9 | ROAE (%) | 95.1 | 101.9 | 119.4 | 93.6 | ROAA (%) | 9.7 | 10.1 | 13.3 | 13.0 | EV/EBITDA (x) | 9.1 | 9.5 | 8.5 | 8.5 | Net debt/equity (%) | 516.4 | 481.0 | 444.2 | 326.6 |
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| | | | | | | | | | | | | | Share Price: | MYR1.59 | Target Price: | MYR1.88 | Recommendation: | Buy | | |
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| | | Sales to pick up in 4Q | | ECW's 9MFY10/17 core net profit was within our expectation but below consensus. 10MFY17 locked-in sales of MYR2.4b was a slight shortfall due to the lack of new launches. However, sales should pick up strongly in Sep-Oct 2017 with two new project launches. Management is keeping its MYR4b sales target for FY17. No change to our earnings forecasts, MYR1.88 RNAV-TP (on 0.65x P/RNAV peg) and BUY rating. | | |
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| | FYE Oct (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 1,712.1 | 2,546.4 | 3,891.8 | 4,672.5 | EBITDA | 411.9 | 595.1 | 730.2 | 848.2 | Core net profit | 44.0 | 129.3 | 200.7 | 252.9 | Core EPS (sen) | 2.6 | 5.4 | 8.3 | 10.4 | Core EPS growth (%) | (6.9) | 105.9 | 52.5 | 26.0 | Net DPS (sen) | 0.0 | 0.0 | 0.0 | 0.0 | Core P/E (x) | 60.2 | 29.3 | 19.2 | 15.2 | P/BV (x) | 1.2 | 1.0 | 0.9 | 0.9 | Net dividend yield (%) | 0.0 | 0.0 | 0.0 | 0.0 | ROAE (%) | 2.5 | 3.7 | 5.1 | 6.0 | ROAA (%) | 1.2 | 1.6 | 2.0 | 2.2 | EV/EBITDA (x) | 8.4 | 9.3 | 9.2 | 8.4 | Net debt/equity (%) | 37.5 | 60.4 | 69.7 | 76.3 |
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| | | | | | | | | | | | | | Share Price: | MYR1.09 | Target Price: | MYR1.12 | Recommendation: | Hold | | |
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| | | Look beyond FY17 | | EWI's 9MFY10/17 core net loss of MYR101m (-28% YoY) was larger than expected. Despite pre-sales of MYR7.3b end-Aug 2017, EWI can only recognize the sales upon physical completion and handover of vacant possession of the properties. Hence, FY17 would remain loss-making as completed units will only be handed over from April 2018 onwards. We adjust for higher losses in FY17, lower profits in FY18-19. Our RNAV-TP is unchanged at MYR1.12 (on 0.75x P/RNAV). Reiterate HOLD. | | |
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| | FYE Oct (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 0.0 | 0.7 | 0.6 | 0.7 | EBITDA | 0.0 | (37.6) | (63.3) | (60.4) | Core net profit | 0.0 | (220.1) | (126.2) | 205.1 | Core FDEPS (sen) | 0.0 | (89.3) | (5.3) | 8.5 | Core FDEPS growth(%) | na | nm | nm | nm | Net DPS (sen) | 0.0 | 0.0 | 0.0 | 0.0 | Core FD P/E (x) | nm | nm | nm | 12.8 | P/BV (x) | nm | 2.5 | 0.8 | 1.0 | Net dividend yield (%) | 0.0 | 0.0 | 0.0 | 0.0 | ROAE (%) | na | (408.0) | (9.6) | 7.8 | ROAA (%) | na | (35.4) | (5.4) | 5.8 | EV/EBITDA (x) | na | na | nm | nm | Net debt/equity (%) | nm | 803.5 | net cash | net cash |
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| | | | | | NEWS | | | Outside Malaysia:
U.S: Unexpected drop in jobless claims shows sturdy job market. Filings for jobless benefits in the U.S. unexpectedly settled back last week, underscoring a resilient labor market even as the Atlantic hurricane season introduces added volatility to the figures, Labor Department data showed. Jobless claims decreased by 14k to 284k (est. 300k, range of est. 240k to 465k). Continuing claims dropped by 7k to 1.94m in week ended Sept. 2 (data reported with one-week lag). Four-week average of initial claims rose to 263,250 -- highest since August 2016 -- from 250,250. (Source: Bloomberg)
U.S: Inflation picks up, ending five-month streak of misses. Inflation may finally be getting back on track to reach the Federal Reserve's goal, as the U.S. cost of living accelerated following a weak stretch of readings, Labor Department data showed. Consumer-price index increased 0.4% MoM after 0.1% MoM rise the prior month; rose 1.9% YoY. Excluding food and energy, so-called core CPI rose 0.2% MoM after rising 0.1% MoM; up 1.7% YoY. (Source: Bloomberg)
E.U: European car sales growth accelerated in August as an expanding economy encouraged purchases. Registrations jumped 5.5% YoY to 903,143 vehicles from 855,689, the European Automobile Manufacturers' Association, or ACEA, said. That was faster than the 2.1% YoY increase posted in June and 2.6% in July. Eight-month sales increased 4.4% YoY to 10.6 million autos. (Source: Bloomberg)
China: Economic expansion unexpectedly cooled further last month after a lacklustre July, as factory output, investment and retail sales all slowed. Industrial output rose 6.0% YoY in August which was the slowest pace this year. Retail sales expanded 10.1% YoY, also the slowest reading in 2017. Fixed-asset investment in urban areas rose 7.8% YoY in the first eight months of the year over the same period in 2016. (Source: Bloomberg)
Australia: Employment growth is now outpacing the U.S. after hiring surged more than twice as much as expected in August. The jobless rate Down Under held steady as more people looked for work. Employment jumped by 54,200 in August, the 11th straight month of gains and longest streak in 23 years. Jobless rate held at 5.6%, matching estimates and limiting wage and price pressures in a labor market still with plenty of spare capacity. Full-time jobs climbed by 40,100; part-time employment rose 14,100. Australian employment is expanding at an annual 2.7%, compared with 1.4% in the U.S. Participation rate rose to 65.3%, the highest level in five years. (Source: Bloomberg) | |
| | | | | Other News:
TRC Synergy: JV firm bags MYR348.3m MRT job. TRC along with its joint venture partner Konsortium Kontraktor Melayu S/B has bagged a MYR348.3m contract from Mass Rapid Transit Corp S/B to build a mass rapid transit maintenance depot in Serdang, Selangor. The contract which was awarded by MRT Corp is for Package DPT201 of the MRT Sungai Buloh-Serdang-Putrajaya project (MRT Line 2), which involves construction of the Serdang maintenance depot, external works and other associated works. (Source: The Edge Financial Daily)
Straits Inter Logistics: Bags MYR45m bunkering services contract. Its 51%-owned subsidiary, Selatan Bunker S/B, has secured a half-year contract worth MYR45m to provide oil bunkering and related services. The contract was awarded by Tumpuan Megah Development S/B. The two parties had previously inked a collaboration agreement to explore and develop the business of bunkering services for marine fuel, petroleum and petroleum-based products — including marketing and sales of bunkering services — in the Pasir Gudang Port area of Johor. (Source: The Edge Financial Daily)
Bina Puri: Gets Selangor road project. The group will undertake road pavement and diversion works along the Federal Road's Sungai Buloh-Assam Jawa stretch in Selangor, under a MYR35.5m contract. The group said its subsidiary Sungai Long Industries S/B had accepted the project's letter of award from Aktif Unggul S/B on Aug 1 this year. (Source: The Edge Financial Daily)
AWC: Qudotech bags MYR32.6m plumbing works job. Its wholly owned Qudotech S/B has bagged a sub-contract worth MYR32.6m from MCC Overseas S/B for the provision of plumbing works for the 8 Conlay project developed by Damai City S/B. AWC said the hotel, hotel residences and serviced residences will be run and managed by Kempinski, the world renowned chain of luxury hotel operators. The contract will commence immediately and is expected to be completed on May 31, 2021. (Source: The Sun Daily) | |
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