| | 
| |
| |
| | | | | | | | | | | | | | Share Price: | MYR1.20 | Target Price: | MYR1.53 | Recommendation: | Buy | | |
|
|
| | | Value emerges | | Recent weakness in SDPR's share price has created a buying opportunity, to accumulate shares in this land-rich yet strong balance sheet company. The sale of Battersea Power Station (BPS) commercial spaces will be concluded in July 2018 and SDPR is now working with the Negeri Sembilan State Government for its MVV land. We lower earnings forecasts but maintain MYR1.53 RNAV-TP (on 0.55x P/RNAV). We upgrade SDPR to BUY. | | |
|
| | FYE Jun (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 2,590.7 | 2,564.4 | 3,183.5 | 2,869.6 | EBITDA | 1,033.1 | 556.2 | 1,543.0 | 1,033.0 | Core net profit | 749.1 | 607.9 | 983.1 | 705.1 | Core EPS (sen) | 11.0 | 8.9 | 14.5 | 10.4 | Core EPS growth (%) | 33.6 | (18.8) | 61.7 | (28.3) | Net DPS (sen) | 0.0 | 0.0 | 5.8 | 3.7 | Core P/E (x) | na | na | 8.3 | 11.6 | P/BV (x) | na | na | 0.8 | 0.8 | Net dividend yield (%) | na | na | 4.8 | 3.1 | ROAE (%) | 18.2 | 10.7 | 12.2 | 7.0 | ROAA (%) | 6.2 | 4.5 | 7.1 | 5.0 | EV/EBITDA (x) | na | na | 5.8 | 8.4 | Net debt/equity (%) | 22.4 | 1.4 | 5.8 | 2.6 |
| |
| | | |
| | | | | | | | | | | | Share Price: | MYR4.65 | Target Price: | MYR4.60 | Recommendation: | Buy | | |
|
|
| | | 1QFY19 results preview | | We expect 1QFY1/19 results, due this week, to be in line, on softer YoY earnings. We remain upbeat on Yinson's business direction, its ability to create value, steady earnings growth, a visible tender pipeline and cashflow strength. Our estimates currently exclude the FPSO FEP win. Our unchanged TP of MYR4.60 is SOP-based. Maintain BUY. | | |
|
| | FYE Jan (MYR m) | FY17A | FY18A | FY19E | FY20E | Revenue | 764.2 | 910.2 | 1,113.4 | 1,114.1 | EBITDA | 283.8 | 645.0 | 771.4 | 771.7 | Core net profit | 219.5 | 341.6 | 294.0 | 279.2 | Core EPS (sen) | 20.6 | 31.4 | 26.9 | 25.5 | Core EPS growth (%) | 26.8 | 52.6 | (14.3) | (5.1) | Net DPS (sen) | 16.8 | 10.0 | 10.0 | 10.0 | Core P/E (x) | 14.1 | 11.3 | 17.3 | 18.2 | P/BV (x) | 1.3 | 1.5 | 1.8 | 1.7 | Net dividend yield (%) | 5.8 | 2.8 | 2.2 | 2.2 | ROAE (%) | 8.5 | 11.6 | 10.8 | 9.6 | ROAA (%) | 3.9 | 5.3 | 4.4 | 4.0 | EV/EBITDA (x) | 21.4 | 10.8 | 9.3 | 8.9 | Net debt/equity (%) | 114.7 | 90.1 | 72.9 | 57.3 |
| |
| | | |
| | MACRO RESEARCH | | | | | | KLFIN Index: Potential Short-Term Rebound
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | FBMKLCI fell for the second day in a subdued session. At day's end, the benchmark fell 2.24pts to 1,675.85. Declines were led by RHBBANK, DIGI, and TM. Market breadth remained negative with losers outpacing gainers by 547 to 264. A total of 1.87b shares worth MYR1.93b changed hands. The recovery in oil price along with positive overnight US markets could lift sentiment today. We expect bargain hunting activities to pick up. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
U.S: Consumer confidence cools on drop in optimism for economy. U.S. consumer sentiment eased in June as Americans became less optimistic for the economy and income growth, according to figures from the New York-based Conference Board. Confidence index fell to 126.4 from 128.8 in May (prev. 128). Present conditions measure little changed at 161.1 after 161.2. Consumer expectations gauge fell to 103.2, lowest in 2018, from 107.2. (Source: Bloomberg)
U.S: Trump signals he favors Mnuchin's path to shield tech from China. President Donald Trump signaled he may take a less confrontational path toward curbing Chinese investments in sensitive American technologies, potentially relying on a U.S. committee that scrutinizes foreign acquisitions for national security risks. Trump made remarks at the White House that appeared to align with Treasury Secretary Steven Mnuchin's approach, in an internal administration debate over how to protect U.S. intellectual property from China. Trump directed the Treasury Department in March to weigh options for restricting Chinese investment in American companies. In May, he said the U.S. "will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology." (Source: Bloomberg)
U.S: Home prices in 20 cities continued to advance at a solid, albeit a touch slower, pace in April, reflecting lingering inventory shortages, according to S&P CoreLogic Case-Shiller data. 20-city property values index increased 6.6% YoY, after rising 6.7% YoY. National home-price gauge advanced 6.4% YoY after 6.5%. Seasonally adjusted 20-city index rose 0.2% MoM (est 0.4%), the smallest gain since July. The report indicates a respite in the steady acceleration in property values since the end of 2014. Seattle, San Francisco and Las Vegas led the gain among cities posting a year-over-year advance in April. Price gains in this recovery have been supported by healthy demand amid a strong labor market and improving consumer finances. (Source: Bloomberg)
S. Korea: Consumer confidence fell to the lowest in more than a year as a slowdown in hiring and tensions between the U.S. and China clouded the economic outlook. The Bank of Korea's monthly consumer sentiment index dropped to 105.5 in June from 107.9 the previous month, according to a statement by the central bank. The decline was the biggest since November 2016, when the country was mired in a political scandal that led to the ouster of the then president. The drop comes as China and the U.S. -- South Korea's two biggest trade partners -- escalate threats of tariffs and other protectionist measures. A slowdown in global trade would be a blow for the South Korean economy. (Source: Bloomberg) | |
| | | | | Other News:
Oil & Gas: Malaysia resumes exports of Bentara crude after output rises. Malaysia has resumed exports of Bentara crude oil after a hiatus as field upgrading increased oil output from the field, two industry sources said on Tuesday. Malaysia's state-owned Petroliam Nasional Bhd, or Petronas, is about to finalise a deal to sell 150,000-barrel cargo of Bentara crude for Aug. 15 to 19 loading on Tuesday after selling 110,000 barrels of the grade last month, one of the sources said. "The field's production is currently at 150,000 barrels per day (bpd), up from 50,000 bpd in 2015, the source said, declining to be named. (Source: The Star)
T7 Global: Keen to proceed with ECRL project despite lower cost. The group is keen on continuing to participate in the controversial East Coast Railway Line project even if it is to be implemented at a substantially lower cost, as long as the group "can make a decent profit" from it, its executive deputy chairman Tan Sri Tan Kean Soon said today. Last night, Prime Minister Tun Dr Mahathir Mohamad said the Pakatan Harapan-led government will proceed with the ECRL if it can obtain more favourable terms through renegotiation and if the project's cost is brought down from the current MYR55b. (Source: The Edge Markets)
MSM Malaysia: Eyes Africa and China as new export markets. The country's leading refined sugar producer, is now looking to penetrate the African and Chinese markets to make full use of the new production capacity that will come on stream once its new sugar refinery in Tanjung Langsat, Johor, commences operations next month. MSM, which currently commands about two-thirds of the domestic refined sugar market, is now studying options on how to enter the two markets so that it does not "financially burden MSM" unnecessarily, according to its group's chairman Datuk Wira Azhar Abdul Hamid. (Source: The Edge Markets) | |
| |
| | | | | | | 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.