STOCK FOCUS OF THE DAY
Heineken Malaysia: Stronger remaining 9M expected HOLD
We maintain our HOLD recommendation with an unchanged DCF-derived fair value of RM18.50/share on Heineken Malaysia (HEIM). We like HEIM for highly defensive earnings properties and its attractive dividend yields of 4.6-4.6% for FY18F-FY20F. However, we opine that these are fairly priced in with implied PE valuations trading at 21.8x, which is +1SD above its 3-year mean.
HEIM recorded a 1QFY18 net profit of RM48.8mil (QoQ: -47.9%, YoY: -0.4%) against a revenue base of RM433.8mil (QoQ: -29.2%, YoY: 10.5%). It was in line with ours and consensus estimates at 17% and 16% respectively. No dividend was declared as expected.
Others :
Genting Singapore: Increased credit extension aids VIP volume growth HOLD
Plantation Sector: Inventory down 6.4% MoM in April NEUTRAL
QUICK TAKES
Plantation Sector: Key Takeaways from Bumitama’s Conference Call NEUTRAL
Plantation Sector: News flow for week 7 – 11 May NEUTRAL
RETAIL RESEARCH
FBM KLCI Outlook: False breakout, Black swan event may induce uncertainty
Stocks On Radar: Formosa Prosonic Industries, V.S. Industry, Sapura Energy, SKP Resources
ECONOMIC HIGHLIGHTS
Malaysia: 45% chance of another hike remains
NEWS HIGHLIGHTS
Market Outlook: Markets optimistic about new government
Market Outlook: Stocks and ringgit in the spotlight
Construction Sector: Review of megaprojects may be ‘blessing in disguise’
Dayang Enterprise Holdings: Earmarks nine vessels for oil and gas jobs
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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