| | 
| |
| |
| |
| | | | | | | | | | | | | | Share Price: | MYR6.10 | Target Price: | MYR7.00 | Recommendation: | Buy | | |
|
|
| | | Aiming for one third of Fortis | | IHH issued a second non-binding letter to Fortis, offering to infuse up to INR4,000 crore (MYR2.4b) through a preferential allotment of shares to fund the buyout of the assets from RHT Health Trust and infrastructure upgrades. IHH could own up to around one-third of the enlarged share base of Fortis. This could lift IHH's FY18E EBITDA/earnings by 4.0%/2.6%. But, net gearing will increase to 14%. Aside from expanding its India's presence, IHH could turnaround the lacklustre performance of Fortis. | | |
|
| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 10,021.9 | 11,142.7 | 12,995.4 | 15,179.6 | EBITDA | 2,188.9 | 2,783.0 | 2,641.2 | 3,058.2 | Core net profit | 866.0 | 595.4 | 913.3 | 1,127.0 | Core FDEPS (sen) | 10.5 | 7.2 | 11.1 | 13.6 | Core FDEPS growth(%) | (4.0) | (31.3) | 53.4 | 23.4 | Net DPS (sen) | 3.0 | 3.0 | 3.0 | 3.0 | Core FD P/E (x) | 58.1 | 84.6 | 55.2 | 44.7 | P/BV (x) | 2.3 | 2.3 | 2.2 | 2.1 | Net dividend yield (%) | 0.5 | 0.5 | 0.5 | 0.5 | ROAE (%) | 2.8 | 4.4 | 4.1 | 4.9 | ROAA (%) | 2.4 | 1.6 | 2.3 | 2.8 | EV/EBITDA (x) | 27.0 | 18.3 | 20.0 | 17.0 | Net debt/equity (%) | 21.1 | 2.8 | 3.4 | net cash |
| |
| | | |
| | | | | | | | | | | | Share Price: | MYR5.88 | Target Price: | MYR5.90 | Recommendation: | Hold | | |
|
|
| | | Standardising accounting | | 1Q18 results were generally in line. MFRS 15 has a relatively pronounced impact on revenue, EBITDA and amortisation, but the overall impact to FY17 net profit is a mere negative MYR12m. Post MFRS 15, Maxis' EBITDA margin will become more comparable with peers. Maintain HOLD with an unchanged TP of MYR5.90. Risk-reward remains merely balanced presently, in our view. | | |
|
| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 8,612.0 | 8,696.0 | 8,978.0 | 9,132.3 | EBITDA | 4,469.0 | 4,607.0 | 4,040.1 | 4,109.5 | Core net profit | 1,927.5 | 2,103.1 | 1,967.1 | 1,989.4 | Core EPS (sen) | 25.7 | 27.5 | 25.7 | 26.0 | Core EPS growth (%) | 6.5 | 6.9 | (6.5) | 1.1 | Net DPS (sen) | 20.0 | 20.0 | 20.0 | 20.0 | Core P/E (x) | 22.9 | 21.4 | 22.9 | 22.6 | P/BV (x) | 9.4 | 6.4 | 6.0 | 5.7 | Net dividend yield (%) | 3.4 | 3.4 | 3.4 | 3.4 | ROAE (%) | 45.2 | 37.3 | 27.1 | 25.8 | ROAA (%) | 10.0 | 10.8 | 10.1 | 9.9 | EV/EBITDA (x) | 12.1 | 11.5 | 12.9 | 12.5 | Net debt/equity (%) | 194.5 | 100.0 | 92.1 | 81.7 |
| |
| | | |
| | | | | | | | | | Glomac (GLMC MK)
by Wei Sum Wong |
| |
| | | | | Share Price: | MYR0.50 | Target Price: | MYR0.57 | Recommendation: | Hold | | |
|
|
| | | Another challenging year | | Earnings and sales outlook remain challenging. Glo Damansara (GD) Mall, which is only 54% leased, continues to be a drag to Glomac's earnings. Elsewhere, property sales may fall short on weak buying sentiment ahead of GE14. Also, there are delays in launching a few projects. We lower earnings forecasts by -36% to -57% to factor in lower property sales, losses from GD mall, and a higher tax rate. RNAV-TP is lowered to MYR0.57 (-4sen) on a lower P/RNAV peg (-0.05x). | | |
|
| | FYE Apr (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 616.6 | 581.8 | 336.9 | 355.1 | EBITDA | 166.1 | 282.4 | 71.0 | 67.6 | Core net profit | 70.9 | 29.5 | 13.2 | 29.3 | Core EPS (sen) | 9.8 | 4.1 | 1.8 | 4.1 | Core EPS growth (%) | 30.0 | (58.4) | (55.3) | 122.4 | Net DPS (sen) | 4.0 | 3.0 | 0.4 | 0.8 | Core P/E (x) | 5.1 | 12.2 | 27.3 | 12.3 | P/BV (x) | 0.4 | 0.3 | 0.3 | 0.3 | Net dividend yield (%) | 8.0 | 6.0 | 0.7 | 1.6 | ROAE (%) | na | na | na | na | ROAA (%) | 3.7 | 1.5 | 0.7 | 1.5 | EV/EBITDA (x) | 5.5 | 2.7 | 9.3 | 10.6 | Net debt/equity (%) | 30.0 | 23.6 | 22.3 | 26.9 |
| |
| | | |
| | SECTOR RESEARCH | | | | | | Mar 2018 TIV: Still uninspiring | POSITIVE
by Ivan Yap |
|
|
|
| | | | | | Despite a 23% MoM jump in March TIV (low base in Feb), 1Q18 TIV is down 4% YoY led by the non-national segment (-11% YoY). We believe the slower YoY sales is due to the wait-and-see approach adopted by consumers for big ticket item purchases before the 14th general election and 2018 National Automotive Policy review. Our 2018 TIV forecast of 595k units (+3% YoY) is unchanged, expecting the growth to be back-loaded. We remain POSITIVE on the sector from a MYR-led earnings recovery perspective. | |
| |
| | | | |
|
| | MACRO RESEARCH | | | | | | FBMKLCI Index: Ventures into Fresh Territory
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | Strong buying interest on index-linked stocks led FBMKLCI higher yesterday. At day's end, the benchmark index jumped 15.86pts to 1,895.18, led by gains in PETDAG, PPB Group, HLFG and HLBANK. Broader market turned positive for the first time this week with gainers outpacing losers by 505 to 374. A total of 2.52b shares worth MYR2.68b changed hands. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
U.S: Weighs emergency powers to curb tech investments by China. The Treasury Department is considering using an emergency law to curb Chinese investments in sensitive technologies, as the Trump administration looks to punish China for what it sees as violations of American intellectual-property rights. The U.S. government is reviewing the possible use of a law known as the International Emergency Economic Powers Act, said Heath Tarbert, an assistant secretary in the agency's international affairs office. Under the 1977 law, President Donald Trump could declare a national emergency in response to an "unusual and extraordinary threat," allowing him to block transactions and seize assets. (Source: Bloomberg)
U.K: Retail sales plunged in March as snow and freezing temperatures kept consumers indoors and disrupted deliveries of stock. The data comes as a fresh blow to the British high street after a year of consumer pullback in the face of rising prices and sluggish wage growth. While pay and inflation data this week show tentative signs that the squeeze may be starting to ease, the weather disruptions have added to the problems facing big-name retailers such as department store Debenhams, which issued a profit warning amid weaker demand for discretionary items. The volume of goods sold in stores and online declined 1.2%, according to figures from the Office for National Statistics. Sales excluding auto fuel fell 0.5%, also more than forecast. (Source: Bloomberg)
Japan: Inflation slips as Kuroda begins new term at BOJ. Japan's key price indicator slowed in March after hitting 1% YoY in February. That's a disappointment for Bank of Japan Governor Haruhiko Kuroda, who started his second term this month repeating his promises to raise inflation to 2%. Consumer prices excluding fresh food rose 0.9% YoY in March. Stripping out fresh food and energy, prices climbed 0.5% YoY. Overall prices gained 1.1% YoY. (Source: Bloomberg)
India: Monetary Policy Panel veering toward a possible rate hike. The most hawkish member of India's monetary policy panel is likely to get support from an influential colleague, signalling an interest rate increase is more probable than a cut. At the April 4-5 policy meeting, Deputy Governor Viral Acharya said there was a revival in investment activity and an improvement in capacity utilization, which boded well for the economy. As a result, he was switching from a neutral stance to shift "decisively to vote for a beginning of 'withdrawal of accommodation' in the next monetary policy meeting in June." Minutes of the policy meeting this month showed most members of India's monetary policy committee are optimistic that Asia's third-largest economy will rebound this year with the output gap closing, a factor that is likely to boost inflation in coming months. (Source: Bloomberg)
Australia: Jobs growth goes 'soggy' as bonanza takes a breather. The economy added 4,900 roles in March, around a quarter of economists' estimates, and February's gain was revised to a 6,300 loss after a seasonal reassessment, the Australian Bureau of Statistics said. Unemployment, the key metric for the central bank, held at 5.5% as fewer people sought work last month. (Source: Bloomberg) | |
| | | | | :
Destini: Bags MYR138m defence contract. The group has bagged a MYR138m contract from the Defence Ministry to provide maintenance, repair and overhaul services and the supply of safety and survival equipment to the Royal Malaysian Air Force. This is in addition to a MYR98.2m three-year contract secured from the Defence Ministry on Dec 8, 2016 to provide similar services to RMAF that ran from Oct 3, 2016. (Source:The Edge Financial Daily)
Ikhmas Jaya: Bags MYR101.85m flood mitigation project. The group has secured an MYR101.85m contract for a flood mitigation project in Sungai Pendang, Kedah from the Department of Irrigation and Drainage. The project consists of demolition and site clearance, piling works, upgrading of bridges, upstream and improvement works. It is expected to take 36 months to complete beginning from the date of site possession. ( Source: The Edge Financial Daily)
Vizione: Posts record quarterly profit in 3QFY18. Its net profit surged 53 times to MYR8.06m in the third financial quarter ended Feb 28, 2018 (3QFY18) from MYR0.152 a year ago, mainly due to contribution from the construction works undertaken by its newly-acquired unit Wira Syukur (M) S/B. Wira Syukur has an order book of MYR3.75b, which will contribute to the group's earnings visibility over the next several years.( 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.