| | 
| |
| |
| |
| | | | | | | | | | | | | | Share Price: | MYR2.58 | Target Price: | MYR2.63 | Recommendation: | Hold | | |
|
|
| | | Awaiting next catalyst | | Continuous job wins in FY17 have seen SCG's outstanding orderbook hit a record high of MYR6.8b. Share price has done well, up 52% since the beginning of 2017, from the euphoria of orderbook replenishment. With share price having reached our TP of MYR2.63, pegged to 16x FY18 PER, we downgrade SCG to a HOLD. Stronger-than-expected earnings delivery and/or job wins in FY18 could be a further re-rating catalyst. | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 1,916.9 | 1,788.8 | 2,347.4 | 2,814.4 | EBITDA | 178.2 | 188.3 | 211.2 | 293.3 | Core net profit | 127.2 | 123.5 | 146.2 | 212.6 | Core EPS (sen) | 9.8 | 9.6 | 11.3 | 16.4 | Core EPS growth (%) | 11.4 | (2.9) | 18.4 | 45.4 | Net DPS (sen) | 4.0 | 5.0 | 4.0 | 5.8 | Core P/E (x) | 26.2 | 27.0 | 22.8 | 15.7 | P/BV (x) | 7.4 | 6.8 | 5.7 | 4.6 | Net dividend yield (%) | 1.6 | 1.9 | 1.5 | 2.2 | ROAE (%) | 32.4 | 26.2 | 27.0 | 32.4 | ROAA (%) | 9.5 | 8.2 | 8.0 | 9.4 | EV/EBITDA (x) | 8.7 | 9.9 | 13.0 | 8.7 | Net debt/equity (%) | net cash | net cash | net cash | net cash |
| |
| | | |
| | | | | | | | | | | | Share Price: | MYR18.90 | Target Price: | MYR23.00 | Recommendation: | Buy | | |
|
|
| | | A longer wait | | That transportation and regasification tariffs would be maintained for 2018 can be construed both ways - both PTG's current profitability and the consequent regulatory overhang would be preserved for an additional year. Share price is off the bottom (+8% YTD) but is still substantially below the levels prior to the emergence of the regulatory overhang. BUY rating maintained with an unchanged MYR23.00 TP. | | |
|
| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 4,456.0 | 4,561.3 | 4,540.4 | 5,146.0 | EBITDA | 2,967.2 | 2,968.1 | 3,038.7 | 3,403.5 | Core net profit | 1,749.6 | 1,747.2 | 1,681.7 | 1,951.1 | Core EPS (sen) | 88.4 | 88.3 | 85.0 | 98.6 | Core EPS growth (%) | (2.0) | (0.1) | (3.8) | 16.0 | Net DPS (sen) | 60.0 | 62.0 | 59.5 | 69.0 | Core P/E (x) | 21.4 | 21.4 | 22.2 | 19.2 | P/BV (x) | 3.3 | 3.1 | 3.0 | 2.9 | Net dividend yield (%) | 3.2 | 3.3 | 3.1 | 3.7 | ROAE (%) | 18.1 | 14.9 | 13.8 | 15.3 | ROAA (%) | 12.7 | 11.3 | 10.0 | 11.2 | EV/EBITDA (x) | 15.1 | 14.4 | 12.5 | 11.0 | Net debt/equity (%) | net cash | 4.0 | 4.0 | net cash |
| |
| | | |
| | SECTOR RESEARCH | | | | | | Keeping it 'rail' | POSITIVE
by Adrian Wong |
|
|
|
| | | | | | Rail infrastructure work awards will be the key feature in 2018, from mega projects such as the ECRL, KL-SG HSR and KVMRT 3. Others like the Pan Borneo Sabah Highway (PBSaH), WCE and KVLRT 3 could also see awards of their remaining work packages, adding to the prospects for sizeable construction orderbook replenishment. With orderbooks already at record levels, earnings delivery would be another key focus in 2018. Our top BUYs are GAM and CMS. | |
| |
| | | | |
|
| | MACRO RESEARCH | | | | | | FBMKLCI Index: Lacking Earlier Intensity, Correction to Continue
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | FBMKLCI rose 3.24pts to 1,825.91 yesterday, led by gains in GENM, YTL and PCHEM. Market breadth, however, was negative with losers outpacing gainers by 685 to 378. A total of 5.39b shares worth MYR3.33b changed hands. With Ringgit still going strong, there will be continued interest on importers particularly automakers. Meanwhile, firmer oil price will also have positive spillover on the O&G stocks. | |
| |
| | | | |
| | | | | | Volatile remittances
by Suhaimi Ilias |
|
|
|
| | | | | | Overseas Filipino workers' remittances (OFWR) increased by a slower +2.0% YoY in Nov 2017 to USD2.26b (Oct 2017: +8.4% YoY to USD2.28b). In local currency terms, OFWR clocked in at +6.0% YoY (Oct 2017: +15.1% YoY), which continues to be supportive of domestic consumption activities last quarter, especially with indications of shift in the use of remittances increasingly towards discretionary and big-ticket spending and less on essentials. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
E.U: Parliament plans push to remove palm oil from biofuels mix. The European Parliament is poised to endorse a legislative campaign to remove palm oil from the list of designated renewable fuels after 2020 due to concerns about its environmental impact. Move risks a trade conflict with producers in Asia. The three biggest political groups in the EU assembly agreed to sponsor an amendment to a draft law on renewable energy that calls for reducing to zero "the contribution from biofuels and bioliquids produced from palm oil" as of 2021. Plenary vote set for Jan. 17. (Source: Bloomberg)
China: Targets faster loan growth for impoverished areas by 2020. China's central bank issued new policies aimed at steering funding to poor areas of the country, the latest step in Beijing's "critical battles". New loans in severely impoverished areas will grow at a faster pace than the provincial average by 2020, according to a notice jointly released by the People's Bank of China and three other financial regulators. Meanwhile, the PBOC also pledged more funding support to commercial lenders in the poorest regions, while companies in those areas will be given accelerated reviews and approvals for initial public offerings. Financial institutions in the designated areas will be allowed greater allowance for the share of bad loans on their books. (Source: Bloomberg)
Crude Oil: Trades near 3-year high as hedge funds increase bullish bets. Oil traded near the highest close in three years as hedge funds increased their bullish bets on crude to the highest in more than a decade. Money managers boosted their net-long positions in West Texas Intermediate to the highest level in data going back to 2006, according to figures from the U.S. Commodity Futures Trading Commission. Brent for March settlement rose to USD 70.26/bbl. (Source: Bloomberg) | |
| | | | | Other News:
Vizione: 2Q net profit soars on construction revenue. The group saw its net profit for the second quarter ended Nov 30, 2017 (2QFY18) jump about 46x to MYR6.55m from MYR141,000 in the same quarter a year ago, due mainly to the maiden contribution of its newly acquired construction subsidiary, Wira Syukur S/B. Quarterly revenue leapt almost 15x to MYR147.3m from MYR9.84m, according to its filing to Bursa Malaysia today.(Source: The Edge Financial Daily)
Tasco: Sells warehouse, land in Port Klang for MYR17.5m. The group sold a warehouse and industrial land in Port Klang, Selangor to Onostatic S/B for MYR17.5m, with an expected one-off gain of MYR5.48m for the group. "After the disposal, we will terminate the tenancy agreement with (our wholly-owned unit) Titian Pelangi Sdn Bhd and move its warehousing business elsewhere," Tasco said. (Source: The Edge Financial Daily)
Amcorp: Ups stake in AmFIRST REIT. The group acquired 13.65m units or a 2.92% stake in AmFIRST Real Estate Investment Trust (AmFIRST REIT) for MYR9.44m from Jadeline Capital S/B.The transaction was done at 69.1 sen per unit in direct transaction, which was a 1.1 sen or 1.62% premium to today's closing price of AmFIRST REIT units of 68 sen. (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 contact your representative HERE. | | | | |
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.