STOCK FOCUS OF THE DAY
Bermaz Auto: Some relief from a stronger ringgit BUY
We maintain a BUY on Bermaz Auto (BAuto) and upgrade our FV to RM2.60/share from RM2.30. This is pegged to a PE of 14x for FY19 earnings. We raised our FY19-20 net profit projections by up to 10% on a better outlook for the ringgit. We lowered our JPY/MYR assumption to 3.8 from 4.0 to reflect this. The JPY/MYR rate has progressively eased from its peak of 3.9-4.0 in early 2017, and has fallen to as low as 3.52 in the recent fortnight.
We emphasize that although BAuto's dependence on the yen remains significant, it has visibly lessen over time: the portion of CBU in its domestic sales saw a historical low of 35% in the group's most recent quarter. This should improve going forward as the group orchestrates a stronger push for its two CKD models that make up over two-thirds of local sales (the CX-5 and Mazda 3), and the addition of a third CKD model in the long term would also provide support.
Others :
Property Watch: New townships in north-west Klang Valley
STOCKS ON RADAR
SKP Resources, Econpile Holdings, N2N Connect, TA Global
NEWS HIGHLIGHTS
Yong Tai: Secures RM100m Bank of China financing
AirAsia: AirAsia Group may relist M’sian ops to unlock value
Malakoff: In maiden local RE project
IPO: GDB Holdings to list on ACE Market
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.
****************************************************************************************************************************************************************************************************************************************************************************************************************
DISCLAIMER:
This message may contain confidential and privileged information for its intended recipient(s) only. If you are not an intended recipient, you are hereby notified that any review, dissemination, and distribution, printing or copying of this message or any part thereof is strictly prohibited. Please delete the entire message and inform the sender of the error. Any opinions, conclusions and other information in this message that are unrelated to official business of AmBank Group are those of the individual sender and shall be understood as neither explicitly given nor endorsed by AmBank Group.
****************************************************************************************************************************************************************************************************************************************************************************************************************
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.