STOCK FOCUS OF THE DAY
Hartalega Holdings: A good end to FY18 HOLD
Hartalega’s foresight and execution hold it in good stead with its visible capacity expansion and its new product launch, against the backdrop of earnings delivery. We maintain our HOLD recommendation with a DCF-derived FV of RM5.70/share (WACC: 7.3% terminal growth: 2.5%). It implies a P/E of 32x CY19F. We believe elevated valuations are justified by Hartalega’s potential inclusion into the FBM KLCI, its leading glove producer position and high earnings visibility (3-year earnings CAGR FY18-FY21 of 15.6%).
Hartalega recorded a 4QFY18 profit of RM116.6mil (QoQ: +3%, YoY: +30%), bringing FY18 to RM439.4mil (YoY: +55%). It came broadly in line with consensus forecasts, at 103% of estimates.
Others :
Cahya Mata Sarawak: 1QFY18 weighed down by lumpy maintenance cost BUY
Kian Joo Can: Weaker 1QFY18 expected BUY
Hup Seng Indutries: Stuck in the middle HOLD
Prestariang: Trading below ex-SKIN value UNDER REVIEW
QUICK TAKES
Media Chinese: A loss for FY18 in the cards HOLD
Plantation Sector: Key takeaways from Golden Agri’s conference call NEUTRAL
RETAIL RESEARCH
Stocks On Radar: Kerjaya Prospek, GHL Systems, Silver Ridge, SCGM
NEWS HIGHLIGHTS
Star Media Group: Transformation initiatives under way to boost earnings
Relisting: JCorp eyes November relisting for QSR Brands
Oil & Gas Sector: Aramco looks to bolster SE Asia presence via JVs with Petronas
Private Equity: Ekuinas records RM2.3b realised proceeds to date
DISCLAIMER:
The information and opinions in this report are 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.
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