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| | | | | | | | | | | | | | Share Price: | MYR4.00 | Target Price: | MYR4.45 | Recommendation: | Buy | | |
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| | | Progress updates on 3 FPSOs | | Developments on Yinson's 3 FPSOs (Lam Son, Four Rainbow & JAK) are progressing well with minor hiccups. Our estimates are unchanged. Yinson remains our preferred MY O&G play – steady financials, lean/ focused management team with strong growth prospects and undemanding valuations. Our TP is SOP-based. | | |
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| | FYE Jan (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 1,038.6 | 764.2 | 1,000.5 | 1,139.7 | EBITDA | 261.0 | 283.8 | 560.9 | 697.6 | Core net profit | 173.1 | 219.5 | 375.3 | 340.5 | Core EPS (sen) | 16.2 | 20.6 | 35.2 | 31.9 | Core EPS growth (%) | 17.5 | 26.8 | 71.0 | (9.3) | Net DPS (sen) | 1.5 | 16.8 | 10.4 | 10.0 | Core P/E (x) | 24.7 | 19.4 | 11.4 | 12.5 | P/BV (x) | 1.9 | 1.8 | 1.4 | 1.3 | Net dividend yield (%) | 0.4 | 4.2 | 2.6 | 2.5 | ROAE (%) | 12.0 | 8.5 | 13.7 | 10.7 | ROAA (%) | 4.8 | 3.9 | 5.6 | 4.8 | EV/EBITDA (x) | 15.6 | 21.4 | 11.6 | 8.9 | Net debt/equity (%) | 51.9 | 114.7 | 72.9 | 54.9 |
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| | MACRO RESEARCH | | | | | | FBMSCAP Index: Playing Catch-Up
by Nik Ihsan Raja Abdullah |
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| | | | | | FBMKLCI fell 14.11pts on the first trading day of 2018. At day's end, the benchmark dropped 0.8% to 1,782.70, led by declines in SIMEPLT, KLCC, DIGI, ASTRO and YTL. Market breadth, however, remained positive with gainers outpacing losers by 530 to 490. A total of 3.69b shares worth MYR2.11b changed hands hand. With an average "transacted value" of <MYR1.00 per share, it implies that there has been strong interest on second and third liners. With overnight US markets ended firmly higher | |
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| NEWS | | | Outside Malaysia:
E.U: Euro-area manufacturing activity rose by a record in December, capping a solid year that saw industry benefit from an improving global economy. IHS Markit's monthly factory index jumped to 60.6 from 60.1 in November, the strongest since the survey began in 1997. The reading, in line with a flash estimate, is well above the 50 level that divides expansion from contraction. The figures show how the euro-region economy is profiting from buoyant global demand. Markit said new orders rose the most in 17 years in December, with export demand at, or close to, record levels in a number of countries. (Source: Bloomberg)
U.K: Manufacturing growth slowed more than forecast in December, retreating from a four-year high. IHS Markit's Purchasing Managers Index for the industry slid to 56.3, below the median estimate of economists for a reading of 57.9. Still, that pace of expansion left the quarterly average at the highest since 2014. "Expansion remained comfortably above long-term trend rates," said Rob Dobson, Director at IHS Markit. "The sector has therefore broadly maintained its solid boost to broader economic expansion in the fourth quarter. The outlook is also reasonably bright." The survey showed that growth in output, new orders and employment slowed from November's highs, albeit to levels that still reflect solid gains. Meanwhile, the gauge of input costs eased to a four-month low. (Source: Bloomberg)
Russia: Oil industry continued its long-term expansion last year, with production hitting a record even as President Vladimir Putin joined forces with OPEC to clear a global glut and lift prices. The nation's oil output increased to an average 10.98 million barrels a day in 2017, up 0.1% from the previous year, according to data published by the Energy Ministry's CDU-TEK statistics unit. That's the ninth consecutive annual increase to the highest level since the collapse of the Soviet Union in 1991. Russia implemented its pledged 300,000 barrel-a-day supply cut gradually, meaning output remained above 11 million barrels a day for several months in early 2017. (Source: Bloomberg) | |
| | | | | Other News:
T7 Global: Lands multiple contracts worth MYR260m. The group has bagged six contracts worth a combined MYR260m. It said the contracts are expected to contribute positively towards the group's earnings and net assets per share for the financial years from 2018 onwards. (Source: The Edge Financial Daily)
MB World: To develop MYR1.46b waterfront in Johor. The group has secured the rights to develop an integrated waterfront in Johor that has an expected gross development value (GDV) of MYR1.46b. Its wholly-owned subsidiary, Danga Palm S/B, had on Dec 31 entered into a development right agreement with PIJ Property Development S/B for the mixed development. The development will comprise both commercial and residential components, including a service apartment, affordable houses, townhouses, shop offices and a shopping mall. (Source: The Edge Financial Daily)
Paramount: To sell land in Selangor for MYR92m. The group is disposing two parcels of leasehold land measuring 9.4 acres in Mukim Pekan Baru Sungai Buloh, Selangor to EM Hub S/B for MYR92.1m. The deal will bring in a gain of MYR33.19m for the group. Of the total proceeds, Paramount said it has allocated MYR50m for acquisition of land bank, MYR40m for working capital and the rest for the proposed disposal expenses. (Source: The Sun Daily)
MCT: Major shareholder to offer 88sen for every share it doesn't own. MCT's major shareholder Regent Wise Investments Limited will extend the remaining shareholders of the group an offer to purchase their shares at 88sen a piece, after one of its co-founders agreed to sell his 17.24% interest for MYR202.5m.(Source: The Star) | |
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