STOCK FOCUS OF THE DAY
Kian Joo : Good things come in a long-term package HOLD
We initiate coverage on Kian Joo Can Factory (Kian Joo) with a HOLD recommendation and a fair value of RM3.00/share. Our fair value is pegged to an FY19F price-to-earnings (P/E) of 13x, in line with the average of the manufacturing sector in Malaysia.
Kian Joo is primarily involved in the manufacture and distribution of tin cans, aluminium cans and corrugated fibreboard cartons. The company also provides contract packing services for carbonated beverages and milk powder on an original equipment manufacturer (OEM) basis.
From FY16 to FY19F, we project that Kian Joo’s revenue would expand from RM1.72bil to RM2.12bil (3-year CAGR of 7%) on the back of capacity expansions in Myanmar and aggressive sales efforts from its newly established trading office in Singapore.
Others :
Yinson Hldgs : Positive boost if Layang FPSO secured BUY
Oil & Gas : Brent up above US$60, WTI at US$54 NEUTRAL
QUICK TAKES
Plantation Sector : News flow for week 23 – 27 October NEUTRAL
Plantation Sector : Key takeaways from IndoAgri’s conference call NEUTRAL
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NEWS HIGHLIGHTS
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DISCLAIMER:
The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
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