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| | | | | | | | | | | | | | Share Price: | MYR1.67 | Target Price: | MYR1.78 | Recommendation: | Hold | | |
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| | | Disposing more Penang land for MYR136m cash | | We are positive on BPLANT's Penang land disposal for MYR136m cash or MYR979,508 EV/ha, marginally above market value. BPLANT also stands to net a disposal gain of MYR115.9m. Most of this cash proceeds will be used to repay debt, enabling BPLANT to re-gear for the MYR750m capex committed to acquire Dutaland estates. More land disposals is required if BPLANT plans to sustain its FY17 high dividend payouts. Maintain HOLD for its high yield prospects, with an unchanged RNAV-TP of MYR1.78. | | |
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| | FYE Dec (MYR m) | FY15A | FY16A | FY17E | FY18E | Revenue | 615.2 | 707.9 | 774.9 | 761.2 | EBITDA | 112.9 | 188.4 | 216.1 | 197.9 | Core net profit | 31.6 | 81.5 | 116.8 | 100.7 | Core EPS (sen) | 2.0 | 5.1 | 7.3 | 6.3 | Core EPS growth (%) | (49.6) | 157.7 | 43.3 | (13.8) | Net DPS (sen) | 13.0 | 14.5 | 18.5 | 6.2 | Core P/E (x) | 84.5 | 32.8 | 22.9 | 26.5 | P/BV (x) | 1.2 | 1.2 | 1.1 | 1.1 | Net dividend yield (%) | 7.8 | 8.7 | 11.1 | 3.7 | ROAE (%) | 3.5 | 10.4 | 27.3 | 4.0 | ROAA (%) | 1.0 | 2.5 | 3.4 | 2.8 | EV/EBITDA (x) | 26.4 | 17.0 | 13.0 | 14.2 | Net debt/equity (%) | 21.9 | 21.5 | 2.2 | 1.7 |
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| | | | | | | | | | | | Share Price: | MYR7.80 | Target Price: | MYR8.00 | Recommendation: | Hold | | |
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| | | 4Q17: No surprises | | 4Q17 results and 4th interim gross DPU of 10.35sen (FY17: 36.15sen) were within expectations. YoY earnings were led by better performances at Mandarin Oriental and management services segment; and backed by stable rental income from its office assets. We tweak FY18-19 earnings forecasts by c.-1% p.a. but nudge up our DDM-TP by 5sen to MYR8.00. | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 1,343.5 | 1,366.8 | 1,489.4 | 1,530.0 | Net property income | 1,019.7 | 1,014.8 | 1,099.9 | 1,137.7 | Distributable income | 674.6 | 671.5 | 670.4 | 691.3 | DPU (sen) | 33.4 | 33.2 | 33.8 | 34.9 | DPU growth (%) | 2.7 | (0.5) | 1.9 | 3.2 | Price/DPU(x) | 23.4 | 23.5 | 23.1 | 22.4 | P/BV (x) | 1.1 | 1.1 | 1.0 | 1.0 | DPU yield (%) | 4.3 | 4.3 | 4.3 | 4.5 | ROAE (%) | 7.0 | 6.8 | 5.5 | 5.4 | ROAA (%) | 4.1 | 4.1 | 4.1 | 4.2 | Debt/Assets (x) | 0.1 | 0.1 | 0.1 | 0.1 |
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| | | | | | | | | | | | Share Price: | MYR1.39 | Target Price: | MYR1.50 | Recommendation: | Hold | | |
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| | | 4Q17: Within estimates | | 4Q17 results and final gross DPU of 4.08sen (FY17: 8.22sen) were in-line. Earnings were mainly driven by positive rental reversions and sustained occupancy rates at selected malls but offset by lower rental income at Sungei Wang Plaza and The Mines. We tweak FY18-19E earnings by -6% p.a. but maintain our DDM-TP of MYR1.50. | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 372.6 | 368.9 | 370.1 | 371.8 | Net property income | 242.5 | 237.1 | 238.5 | 240.9 | Distributable income | 171.1 | 167.4 | 168.1 | 170.0 | DPU (sen) | 7.6 | 7.4 | 7.4 | 7.4 | DPU growth (%) | (2.0) | (2.5) | 0.1 | 0.5 | Price/DPU(x) | 18.3 | 18.8 | 18.8 | 18.7 | P/BV (x) | 1.1 | 1.1 | 1.1 | 1.1 | DPU yield (%) | 5.5 | 5.3 | 5.3 | 5.4 | ROAE (%) | 6.1 | 5.9 | 5.9 | 6.0 | ROAA (%) | 4.0 | 3.8 | 3.8 | 3.8 | Debt/Assets (x) | 0.3 | 0.3 | 0.3 | 0.3 |
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| | | | | | | | | | | | Share Price: | MYR1.42 | Target Price: | MYR1.50 | Recommendation: | Hold | | |
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| | | Remains focused on acquisitions | | Post FY17 analyst briefing, we remain neutral on Axis' near-term earnings outlook but we continue to favour its active asset acquisition strategy which could grow future distributions. Our earnings forecasts and DDM-TP of MYR1.50 (cost of equity: 7.9%) are unchanged. | | |
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| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 171.3 | 172.7 | 199.6 | 216.0 | Net property income | 144.3 | 146.2 | 171.3 | 185.8 | Distributable income | 90.2 | 90.8 | 110.5 | 124.6 | DPU (sen) | 7.4 | 7.4 | 8.1 | 9.1 | DPU growth (%) | (1.8) | 0.1 | 8.5 | 12.8 | Price/DPU(x) | 19.1 | 19.1 | 17.6 | 15.6 | P/BV (x) | 1.1 | 1.1 | 1.1 | 1.1 | DPU yield (%) | 5.2 | 5.2 | 5.7 | 6.4 | ROAE (%) | 8.9 | 8.2 | 6.9 | 7.8 | ROAA (%) | 4.1 | 3.8 | 4.2 | 4.7 | Debt/Assets (x) | 0.3 | 0.3 | 0.3 | 0.3 |
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| | MACRO RESEARCH | | | | | | Firm on fuel and food prices
by Suhaimi Ilias |
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| | | | | | Inflation in Dec 2017 inched up to +3.5% YoY (Nov 2017: +3.4% YoY) on firm fuel and food prices while core inflation remained at +2.2% YoY (Nov 2017: +2.2% YoY). For full year 2017, inflation rate was +3.7% (2016: +2.1%) while core inflation was +2.4% YoY (2016: +2.4%). Maintain our 2018 headline inflation forecast at 2.5%-3.0%. | |
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| | | | | | Hang Seng Index: Treading into Uncharted Territory
by Nik Ihsan Raja Abdullah |
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| | | | | | FBMKLCI fell 1pt to 1,837.04 yesterday amid profit-taking activity. Losers were led by PTG, HLFG and GENT. Market breath turned negative for the first time this week. Losers outpaced gainers by 606 to 402. A total of 3.19b shares worth MYR3.01b changed hands. Despite yesterday's pullback, there could be interest on financial stocks. Some economists are expecting a rate hike soon but our economist expects BNM to raise interest rate only after election. | |
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| NEWS | | | Outside Malaysia:
U.S: Sales of previously-owned homes fell in December for the first time in four months, as the market struggles with record-low supply and rising prices, figures from the National Association of Realtors showed. Contract closings declined 3.6% MoM to a 5.57m annual rate after 5.81m. Median sales price increased 5.8% YoY to USD246,800. Inventory of available properties fell 10.3% YoY to 1.48m, a record low in data going back to 1999. Full year 2017 sales of 5.51m were up 1.1% from 2016, smallest gain in three years. (Source: Bloomberg)
E.U: The euro-area economy strengthened further at the start of 2018, bringing with it signs of a long-awaited pickup in inflation. The improvement lifted IHS Markit's Purchasing Managers' Index to 58.6 from 58.1 in December. The gauge is now at a level suggesting quarterly economic growth of close to 1%, according to the report. Rising output prices will reinforce the position of the more hawkish members of the European Central Bank's Governing Council. They've already been out in force this year, arguing that the improved economic backdrop has put inflation on a path toward 2% and justifies an unwinding of unprecedented stimulus. (Source: Bloomberg)
U.K: Labor market displayed unexpected resilience in the three months through November as employment jumped and wage growth ticked higher. The number of people in work rose 102,000 to a record high, confounding market expectations that employment would fall. Basic pay growth quickened to 2.4%, the highest in almost a year, though it still lags well behind the rate of inflation. The positive news could push more proactive policy makers at the Bank of England towards voting for another increase in interest rates. (Source: Bloomberg)
S. Korea: Economic growth weakened in the final three months of last year as a fall in automobile exports overpowered an increase in shipments of semiconductors. That slowdown came after GDP expanded in the third quarter at the best pace in more than seven years. GDP contracted 0.2% in the three months through December from the previous quarter, when it grew 1.5%, the Bank of Korea said. That drop is the worst result since the final quarter of 2008, when it contracted 3.3%.(Source: Bloomberg) | |
| | | | | Other News:
PA Resources: Bags First Solar supply contract. The group has secured a MYR600m contract from US-based First Solar Inc and its manufacturing units in Malaysia and Vietnam to supply certain materials and other goods for the production of solar photovoltaric modules. (Source: The Star)
Econpile: Lands RM119m substructure, basement job. The group has bagged a MYR119.1m contract from Bayu Mantap S/B to undertake substructure and basement works for the redevelopment of Tenaga Nasional Bhd's quarters here. It said its wholly-owned subsidiary Econpile (M) S/B has received a letter of award from Bayu Mantap for the proposed job. (Source: The Edge Financial Daily)
Daya Material: Wins MYR13m maintenance job from KLCC Property. Daya Materials has been awarded a MYR13.04m contract by KLCC Property Holdings Bhd for the maintenance of air-conditioning and mechanical ventilation systems. It is for the maintenance of the air-conditioning and mechanical ventilation systems at Petronas Twin Towers, Masjid Asy-Syakirin, Kompleks Dayabumi and Petrosains. (Source: The Edge Financial Daily)
Salcon: Bags MYR7m job for sewage infrastructure upgrade works. Its 60%-owned unit Envitech S/B has secured a MYR7.09m contract from Jurutera Perunding Tegap S/B for works related to the construction and upgrading of sewage infrastructure in Banting, Selangor. The works comprise the design, construction and completion of a sewage pumping station and pumping main, and the upgrading of an existing pumping station and treatment plant. The contract is for a 12-month period commencing January 30, 2018. (Source: The Edge Financial Daily) | |
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