| | 
| | | |
| | | |
| | |
| | | | | | | | | | | | | | | | Share Price: | MYR6.14 | Target Price: | MYR7.50 | Recommendation: | Buy | | |
|
|
| | | Niaga's 3Q17 results within expectations | | Niaga's 3Q17 results were generally within expectations and we expect the bank to contribute to 22% of CIMB Group's earnings in FY17. Earnings recovery remains tentative amid a soft economic environment but management is cautiously optimistic into 2018. We maintain a BUY on CIMB Group for its strong earnings growth (+16% in FY18E) and decent valuations (FY18 PER of 10.5x relative to 13x mean). Our TP of MYR7.50 pegs on a FY18 PBV of 1.3x (ROAE: 10.6%). BUY. | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Operating income | 15,395.8 | 16,065.3 | 17,022.2 | 18,119.9 | Pre-provision profit | 6,146.8 | 7,413.6 | 8,155.8 | 8,984.3 | Core net profit | 3,411.2 | 3,414.4 | 4,440.2 | 5,151.8 | Core EPS (MYR) | 0.40 | 0.39 | 0.50 | 0.58 | Core EPS growth (%) | 5.6 | (2.4) | 27.4 | 16.0 | Net DPS (MYR) | 0.14 | 0.20 | 0.26 | 0.30 | Core P/E (x) | 15.3 | 15.6 | 12.3 | 10.6 | P/BV (x) | 1.3 | 1.2 | 1.1 | 1.1 | Net dividend yield (%) | 2.3 | 3.3 | 4.2 | 4.9 | Book value (MYR) | 4.87 | 5.24 | 5.37 | 5.65 | ROAE (%) | 8.7 | 7.9 | 9.6 | 10.6 | ROAA (%) | 0.8 | 0.7 | 0.9 | 1.0 |
| |
| | | |
| | | | | | | | | | | | | | Share Price: | MYR1.72 | Target Price: | MYR1.90 | Recommendation: | Buy | | |
|
|
| | | 1QFY18: Started off well | | 1QFY6/18 results and 1st interim net DPU of 2.67sen were within expectations. YoY earnings growth was attributed to improvement across most assets, particularly retail and hospitality. Our earnings forecasts and DDM-TP of MYR1.90 (cost of equity: 7.8%) are unchanged. | | |
|
| | FYE Jun (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 507.0 | 522.9 | 579.4 | 607.0 | Net property income | 373.9 | 388.8 | 442.5 | 464.2 | Distributable income | 270.6 | 271.1 | 297.8 | 307.1 | DPU (sen) | 8.3 | 8.3 | 9.1 | 9.3 | DPU growth (%) | 5.2 | 0.2 | 9.5 | 2.7 | Price/DPU(x) | 20.8 | 20.8 | 19.0 | 18.5 | P/BV (x) | 1.2 | 1.2 | 1.2 | 1.2 | DPU yield (%) | 4.8 | 4.8 | 5.3 | 5.4 | ROAE (%) | 8.1 | 10.3 | 7.1 | 7.3 | ROAA (%) | 4.0 | 4.0 | 4.2 | 4.2 | Debt/Assets (x) | 0.3 | 0.3 | 0.4 | 0.4 |
| |
| | | |
| | | | | | | | | | | | | | Share Price: | MYR0.82 | Target Price: | MYR0.75 | Recommendation: | Hold | | |
|
|
| | | Still in red in 3Q17 | | 9M17 core results came in within expectation. MMHE remained in the red for the 3rd consecutive quarter, reflecting the operating challenges. We posit that most of negatives have been priced in. Valuations are fair and reflect the current situation. MMHE needs to show a constant recovery in new orders intake to warrant a re-rate. Until then, MMHE remains a HOLD with an unchanged MYR0.75 TP, based on 0.5x NTA. | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 2,459.0 | 1,191.3 | 1,003.1 | 992.7 | EBITDA | 157.9 | 84.3 | 66.4 | 63.9 | Core net profit | 93.3 | (1.3) | (24.5) | (25.4) | Core EPS (sen) | 5.8 | (0.1) | (1.5) | (1.6) | Core EPS growth (%) | (46.1) | nm | nm | nm | Net DPS (sen) | 0.0 | 0.0 | 0.0 | 0.0 | Core P/E (x) | 14.1 | nm | nm | nm | P/BV (x) | 0.5 | 0.5 | 0.5 | 0.5 | Net dividend yield (%) | 0.0 | 0.0 | 0.0 | 0.0 | ROAE (%) | 1.7 | (5.2) | (1.9) | (1.1) | ROAA (%) | 2.1 | (0.0) | (0.7) | (0.7) | EV/EBITDA (x) | 4.8 | 9.7 | 5.3 | 6.6 | Net debt/equity (%) | net cash | net cash | net cash | net cash |
| |
| | | |
| | | | | | | | | | | | | | Share Price: | MYR6.59 | Target Price: | MYR5.50 | Recommendation: | Sell | | |
|
|
| | | Much better QoQ but still short | | Higher volume loading mainly from sensor and QCTD division was the key factor for GTB's 38%/141% QoQ surge in 3Q17 revenue/core net profit. However, 9M17 core net profit is still below expectations at just 50%/45% of our and consensus' FY17 forecasts due to lower-than-expected sensor ASPs. We lower FY17-19 core net profit estimates by 5%-8%, mainly to account for lower sensor ASPs. Correspondingly, our TP is reduced to MYR5.50 (-5%); we maintain our anti-consensus SELL rating. | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 343.7 | 215.3 | 332.9 | 467.9 | EBITDA | 96.3 | 51.2 | 84.4 | 131.9 | Core net profit | 71.3 | 25.7 | 46.0 | 86.4 | Core FDEPS (sen) | 25.3 | 9.0 | 16.0 | 30.1 | Core FDEPS growth(%) | 10.4 | (64.6) | 78.9 | 87.7 | Net DPS (sen) | 20.0 | 16.0 | 13.0 | 22.0 | Core FD P/E (x) | 26.0 | 73.6 | 41.1 | 21.9 | P/BV (x) | 6.2 | 7.0 | 6.8 | 6.3 | Net dividend yield (%) | 3.0 | 2.4 | 2.0 | 3.3 | ROAE (%) | 24.4 | 9.1 | 17.1 | 30.3 | ROAA (%) | 19.9 | 7.7 | 14.5 | 25.4 | EV/EBITDA (x) | 17.3 | 16.0 | 21.0 | 13.3 | Net debt/equity (%) | net cash | net cash | net cash | net cash |
| |
| | | |
| | | | | SECTOR RESEARCH | | | | | | | Conference takeaways
by Chee Ting Ong |
|
|
|
| | | | | | The industry presently faces multiple challenges ranging from stagnating productivity, rising costs, perception issues, non-tariff barriers and slowing expansion. A change in mindset is required for the industry to thrive over the next 100 years, or risk losing market share. In the short term, our 12M NEUTRAL sector call is reiterated. Our BUYs are IOI, SOP, BAL, DSNG and TBLA. SELL BWPT. | |
| |
| | | | |
| |
| | | | MACRO RESEARCH | | | | | | | Deposit-driven moderation
by Suhaimi Ilias |
|
|
|
| | | | | | Money supply (M3) growth moderated in Sep 2017 to +5.0% YoY from the 27-month high of +5.3% YoY in Aug 2016 as deposit growth eased amid sustained credit expansions and rise in external reserves. Meanwhile, BNM net short FX positions dropped for the fifth consecutive month as unwinding process continues. | |
| |
| | | | |
| | | | | | | | FBM Emas Shariah Index – Outperforming its Peer
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | Late selldown dragged FBMKLCI 0.43pts lower at 1,747.92, led by decline in ROTH, PCHEM and AMM. Broader market, however, remained mildly positive, with gainers outpacing losers by 458 to 449. A total of 3.15b shares worth MYR2.78b changed hands. O&G stocks will continue to steal the limelight today as oil price extended gains. But sentiment will likely stay choppy as investors await cautiously for President Trump to name a new Fed chair on Thursday. | |
| |
| | | | |
| |
| | NEWS | | | Outside Malaysia:
U.S. Manufacturing is powering up, regional report cards show. America's factories cranked it up in October, according to the latest regional manufacturing indexes. From Milwaukee to Dallas to New York state, measures improved to multi-year highs, reflecting robust orders growth as the global economy shows some promise. The MNI Chicago Business Barometer unexpectedly advanced to 66.2, marking the strongest reading since March 2011, figures showed. Down south in the Lone Star State, manufacturing business activity was the firmest in more than 11 years, according to recent figures from the Federal Reserve Bank of Dallas. The Kansas City Fed's measure advanced to the strongest reading since March 2011, while the New York Fed's Empire State factory index climbed to the highest since September 2014. (Source: Bloomberg)
U.S: Consumer confidence at highest since 2000 on economy, jobs. U.S. consumer confidence rose more than expected in October to the highest in almost 17 years as Americans grew more confident about the economy and job market, according to figures from the New York-based Conference Board. Confidence index rose to 125.9, highest since Dec. 2000, from 120.6 in September. Present conditions measure increased to 151.1, highest since 2001, from 146.9. Consumer expectations gauge rose to 109.1, a seven-month high, from 103. (Source: Bloomberg)
E.U: Euro-area inflation unexpectedly slowed in October despite the bloc's strengthening economy, underlining why the European Central Bank last week kept its exit from monetary stimulus wide open. Price growth cooled to 1.4% YoY from 1.5% YoY in September. In a further blow to the ECB's drive to boost inflation, the core rate dropped below 1% YoY for the first time in five months. The inflation data was published alongside third-quarter GDP figures, which showed faster-than-forecast 0.6% growth. That's an 18th quarterly expansion. On a year-on-year basis, GDP hit 2.5% YoY, the best since early 2011. (Source: Bloomberg)
China: Official factory gauge fell this month, with new orders and prices leading the decline, as officials increasingly prioritize a campaign to clamp down on polluting industries and rein in debt. The manufacturing purchasing managers index fell to 51.6 in Oct., vs. five-year high of 52.4 in Sept. The non-manufacturing PMI stood at 54.3 vs. 55.4 in previous month. Numbers higher than 50 indicate improving conditions; readings below 50 signal a worsening outlook. (Source: Bloomberg)
Japan: The Bank of Japan left its massive monetary stimulus program unchanged even as it trimmed its inflation forecasts, signalling further divergence ahead from its global peers. Governor Haruhiko Kuroda and the board voted to maintain the central bank's yield curve control program and asset purchases. The vote was 8-1, with new board member Goushi Kataoka dissenting. The BOJ is under little pressure to take additional action even though inflation is well below its 2% target. Japan's economy is on track for the longest expansion in 16 years, stocks are at the highest level in two decades and the labor market is the tightest in a generation. (Source: Bloomberg) | |
| | | | | Other News:
Benalec: Sells seven plots of Melaka land for MYR100m. The group is selling seven plots of leasehold land measuring 216,427 sq m at Klebang, Melaka, for MYR100.17m cash. Benalec said its three indirect wholly-owned subsidiaries — Sentosacove Development S/B, Oceanview Realty S/B and Strategic Cove Sdn Bhd — entered into a sale and purchase agreement with the purchaser Titanium Hallmark S/B for the disposal. Under the deal, Benalec expects to realise a net gain of MYR24.7m representing earnings per share of about 3 sen apiece. (Source: The Edge Financial Daily)
Wong Engineering: Bags job to build affordable apartments for MYR87.5m. Its wholly-owned subsidiary WEC Construction S/B has bagged a MYR87.5m contract to build two blocks of affordable housing apartments, together with related facilities at the Kuchai Lama Entrepreneurs Park here. The apartment blocks will comprise 556 units. The contract — which will start on Nov 16 this year and be completed by May 15, 2020 — also includes the construction of a 31-unit hawker centre and an eight-storey car park podium (Source: The Edge Financial Daily)
Hap Seng: To develop 'Menara Hap Seng 3' office building for MYR312m. Hap Seng will be developing a new commercial office space building, named "Menara Hap Seng 3", for a construction cost of MYR312m. It comprises 20 storeys of office space, five podiums, a showroom and a six level basement car park, with a net lettable area of 240,000 sq ft. The group is expecting to rake in annual rental revenue of between MYR20m and MYR21m from 2020 onwards, considering demand for office buildings at prime locations within the Golden Triangle. (Source: The Sun Daily)
LBS Bina: Plans 1-to-2 share split and 1-for-10 bonus issue. The group has proposed to split its shares on a one-to-two (1-to-2) basis, followed by a bonus issuance on the basis of 1 bonus share for every 10 split shares held (1-for-10).LBS said the first will result in the subdivision of every one existing share into two ordinary shares, on an entitlement date to be fixed. Subsequently the group will undertake the bonus issue, which will involve the issuance of up to 162.99m new shares on the 1-for-10 basis. (Source: The Edge Financial Daily) | |
| |
| | | | | Disclaimer | | | This email and its attachment(s) are confidential and are intended solely for the use of the individual to whom it is addressed. Any views or opinions expressed are solely those of the author and do not necessarily represent those of Maybank Kim Eng or any of its affiliates. Intended recipients of this email are prohibited from disseminating, forwarding, printing and/or copying its contents. If you are not the intended recipient of this email, you are strictly prohibited to take any action based upon them, which also includes dissemination, forwarding, printing and copying of its contents. Maybank Kim Eng Research sent this e-mail to you because your Notification Preferences indicate that you want to receive information about our daily research reports. If you wish to read Disclaimer in details, please click HERE. | | | To unsubscribe or change preference settings, please click here to contact your representative. | | | | |
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.