| 
| |
| |
| | | | | | | | | | | | | | Share Price: | MYR1.83 | Target Price: | MYR2.00 | Recommendation: | Hold | | |
|
|
| | | Saved by less content cost | | 1QFY1/19 core net profit beat our expectations due largely to lower-than-expected content cost. Our FY1/19 EPS estimate is raised +3% but our long term EPS estimates are little changed. Due to minor housekeeping, our SOP-based TP is trimmed by 5% to MYR2.00. ASTRO's share price has surged 35% from its recent trough but as it clarified that it has not received any privatisation proposal and the 1QFY1/19 DPS declared was lower YoY, we opine that its upside potential has narrowed. | | |
|
| | FYE Jan (MYR m) | FY17A | FY18A | FY19E | FY20E | Revenue | 5,612.6 | 5,530.8 | 5,558.6 | 5,677.7 | EBITDA | 1,816.5 | 1,819.8 | 1,691.1 | 1,837.1 | Core net profit | 663.4 | 643.2 | 607.6 | 749.2 | Core FDEPS (sen) | 12.7 | 12.3 | 11.6 | 14.3 | Core FDEPS growth(%) | 0.2 | (3.0) | (5.7) | 23.3 | Net DPS (sen) | 12.5 | 12.5 | 10.5 | 12.5 | Core FD P/E (x) | 14.4 | 14.8 | 15.7 | 12.8 | P/BV (x) | 15.3 | 14.6 | 13.4 | 11.8 | Net dividend yield (%) | 6.8 | 6.8 | 5.7 | 6.8 | ROAE (%) | 101.9 | 120.7 | 88.9 | 98.3 | ROAA (%) | 10.1 | 9.8 | 9.4 | 12.6 | EV/EBITDA (x) | 9.5 | 9.5 | 7.5 | 6.6 | Net debt/equity (%) | 481.0 | 571.2 | 439.4 | 325.0 |
| |
| | | |
| | | | | | | | | | Glomac (GLMC MK)
by Wei Sum Wong |
| |
| | | | | Share Price: | MYR0.48 | Target Price: | MYR0.56 | Recommendation: | Hold | | |
|
|
| | | A tough year | | Glomac's FY4/18 core net profit was below our and consensus expectations, with weaker core net profit by -58% YoY. Its FY4/18 property sales of MYR214m (-49% YoY) also fell short due to the lack of new launches. We lower our earnings forecasts by 11-13%. Our new RNAV-TP is MYR0.56 (-1sen) on unchanged 0.3x P/RNAV peg. HOLD. | | |
|
| | FYE Apr (MYR m) | FY17A | FY18A | FY19E | FY20E | Revenue | 584.1 | 404.7 | 341.3 | 403.1 | EBITDA | 203.4 | 110.2 | 63.4 | 73.5 | Core net profit | 108.2 | 11.5 | 25.5 | 32.2 | Core EPS (sen) | 15.0 | 1.6 | 3.5 | 4.5 | Core EPS growth (%) | 52.5 | (89.4) | 123.0 | 26.0 | Net DPS (sen) | 3.0 | 1.5 | 1.1 | 1.3 | Core P/E (x) | 3.2 | 29.9 | 13.4 | 10.6 | P/BV (x) | 0.3 | 0.3 | 0.3 | 0.3 | Net dividend yield (%) | 6.3 | 3.2 | 2.2 | 2.8 | ROAE (%) | na | na | na | na | ROAA (%) | 5.5 | 0.6 | 1.3 | 1.6 | EV/EBITDA (x) | 2.4 | 6.6 | 11.7 | 11.4 | Net debt/equity (%) | net cash | 30.3 | 31.7 | 38.9 |
| |
| | | |
| | | | | | | | | | | | Share Price: | MYR1.50 | Target Price: | MYR1.70 | Recommendation: | Hold | | |
|
|
| | | Secures MYR225m of new jobs | | Kimlun has secured i) a road works package in Johor Bahru worth MYR144m and ii) a precast supplies contract in Singapore for MYR81m. No change to our earnings forecasts having imputed for job win potentials in FY18. Maintain HOLD with an unchanged TP of MYR1.70 pegged to unchanged 7x FY18 PER (-0.5 SD). | | |
|
| | FYE Dec (MYR m) | FY16A | FY17A | FY18E | FY19E | Revenue | 940.7 | 985.2 | 1,286.2 | 1,289.2 | EBITDA | 130.9 | 121.8 | 124.4 | 133.8 | Core net profit | 80.7 | 80.1 | 74.4 | 80.8 | Core EPS (sen) | 26.4 | 26.2 | 24.3 | 26.4 | Core EPS growth (%) | 23.0 | (0.7) | (7.2) | 8.6 | Net DPS (sen) | 6.5 | 5.5 | 6.6 | 7.1 | Core P/E (x) | 5.7 | 5.7 | 6.2 | 5.7 | P/BV (x) | 0.9 | 0.8 | 0.7 | 0.6 | Net dividend yield (%) | 4.3 | 3.7 | 4.4 | 4.8 | ROAE (%) | na | na | na | na | ROAA (%) | 8.2 | 7.4 | 5.9 | 5.9 | EV/EBITDA (x) | 5.1 | 5.9 | 4.1 | 3.6 | Net debt/equity (%) | 6.7 | 7.1 | 7.1 | 3.7 |
| |
| | | |
| | MACRO RESEARCH | | | | | | KLTEC Index: Taking a Short Breather
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | FBMKLCI surged 21.99pts to 1,777.13 yesterday, in line with regional gains. Advancers were led by ASTRO, AXIATA and YTL. Second and third liner stocks also hogged the limelight on bottom fishing. Market breath was positive, with gainers outpacing losers by 716 to 267. A total of 3.50b shares worth MYR3.02b changed hands. FBMKLCI could extend its gains as worries over a full-blown trade war dissipate. The firmer US markets would also lend support to the local bourses. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
Global: Investment flows plummeted 23% in 2017 to three-year low. Global flows of foreign direct investment plunged 23% in 2017 to a three-year low amid a decline in cross-border mergers and acquisitions, a trend the United Nations called "troubling" for the risk it poses to emerging economies. The decline in FDI to USD1.43tr from USD1.87tr in 2016 -- even as trade and economic growth picked up -- also reflected lower investment in projects other than mergers, according to the annual World Investment Report from the UN Conference on Trade and Development. Inward flows to developed economies dropped 37% to USD712b as mergers and acquisitions fell 29%. Meanwhile, FDI flows to developing economies remained stable at USD671b, with investment into Latin America rising for the first time in six years. (Source: Bloomberg)
U.S: Trade gap narrows to seven-month low on record exports. The U.S. trade deficit narrowed to the lowest level since September as exports rose to a record, amid Trump administration tariffs and trade threats that risk hurting global commerce. The gap decreased 2.1% in April to USD46.2b, from a revised USD47.2b in the prior month, Commerce Department data showed. Exports ticked up while imports fell slightly, according to the report. President Donald Trump's tariffs on imported steel and aluminium have showed signs of pushing up prices while disrupting some businesses, though they haven't yet weighed on broader U.S. economic growth. This month's extension of the metals levies to allies including Canada and Europe, along with plans for tariffs on additional Chinese goods, risk a wider trade war. (Source: Bloomberg)
U.S: OECD sees fiscal policy as short-term boost, long-term risk. The near-term outlook for the U.S. economy is strong, driven in part by tax cuts and government spending that will also raise the risk of unsustainable deficits in the longer run, according to the Organization for Economic Cooperation and Development. The second-longest U.S. economic expansion on record has picked up speed as tax changes help spur business fixed investment, the group said in its annual survey of the country's economic health. The OECD forecast U.S. growth accelerating to 2.9% in 2018 from 2.3% last year, followed by 2.8% in 2019. "Private consumption remains solid, driven by strong job gains and buttressed by wealth gains from buoyant asset prices and high levels of consumer confidence," the report said. "The newly introduced tax cuts will spur business investment, and raising the spending ceilings will lead to a sizable fiscal impulse." (Source: Bloomberg)
China: Central bank stepped up injections of cash to the financial system, as lenders face a seasonal liquidity squeeze complicated by an oncoming U.S. Federal Reserve rate hike. The People's Bank of China offered CNY463b (USD72.4b) via its Medium-term Lending Facility to commercial lenders. When taking into account of CNY259.5b of such contracts maturing this month, the PBOC has pumped in a net CNY203.5b via such monetary policy tools so far this month, the most since March 2017, data compiled by Bloomberg show. (Source: Bloomberg)
India: Central bank raised its benchmark interest rate for the first time since 2014 to curb rising price pressures and calm financial markets as policy tightening in the U.S. rattles emerging markets. All six members of the Monetary Policy Committee voted to increase the repurchase rate to 6.25% from 6%, the Reserve Bank of India said. The RBI cited volatile crude oil prices and global financial market developments as a risk to its outlook. Oil is India's biggest import and rising prices is a threat not only to inflation, but also the nation's sizable trade deficit, putting more pressure on the currency. (Source: Bloomberg) | |
| | | | | Other News:
Chin Hin: Sells shop offices for MYR21.2m in related party deal. The group will sell 17 units of three-storey shop offices to Chin Hin Building Materials Supply (JB) S/B for MYR21.2m in a related party transaction. Chin Hin said the disposal will provide an avenue for the group to realise its investment in the non-core assets at their market value and raise cash proceeds which can be channeled towards the group's business operations.(Source: The Edge Financial Daily)
TM: TM chief Shazalli Ramly resigns, Bazlan takes over as acting CEO. TM's managing director and group chief executive officer Datuk Sri Mohammed Shazalli Ramly has resigned from his positions effective immediately. TM also announced the appointment of its deputy group chief executive officer, Datuk Bazlan Osman, as the acting group CEO. (Source: The Edge Financial Daily)
JAKS Resources: Launches second cash call in a year. The group is launching another cash call, this time to raise up to MYR69.54m from a proposed rights issue of warrants to expedite the construction progress of its power plant project in Vietnam, for partial repayment of bank borrowings and to fund preliminary expenses relating to exploring new renewable energy projects in Southeast Asia. (Source: The Edge Financial Daily)
Tiong Nam: Property arm buys JB land for MYR40m.Tiong Nam Logistics Holdings Bhd's wholly owned subsidiary Medini Heritage S/B has entered into a sale and purchase agreement with Pasti Prestij S/B to purchase a piece of freehold land measuring measuring 40.613ha in Johor Baru for MYR40.22m. (Source: The Sun 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.