STOCK FOCUS OF THE DAY
MMHE: Loss from low yard utilisation and change orders BUY
We maintain our BUY recommendation on Malaysia Marine and Heavy Engineering Holdings (MMHE) with an unchanged fair value of RM1.13/share based on a 25% discount to its FY18F book value, underpinned by a rising momentum of offshore job prospects globally against a backdrop of improved oil price outlook.
While MMHE’s FY19F-FY20F earnings are unchanged, we have reversed our earlier FY18F net profit of RM12mil to a loss of RM21mil on higher operating cost assumptions due to the weaker-than-expected 1HFY18 results. Note that our earlier FY18F net profit of RM12mil was already less than half of street’s estimate of RM25mil. No interim dividend was declared as expected.
Others:
DRB-Hicom: To sell Alam Flora to Malakoff HOLD
TH Plantations: Asset disposals to take place only next year HOLD
RETAIL RESEARCH
Stocks On Radar: Comfort Gloves, Axiata Group, Kronologi Asia, V.S. Industry
ECONOMIC HIGHLIGHT
India: Expect RBI to take a breather following rate hike
NEWS HIGHLIGHTS
Boustead Plantations: Buys land, assets in Sabah for RM397m cash
Borneo Aqua Harvest: Yields first gold dore bar in Tawau
Lay Hong: Sells land for RM27.6mil
Ann Joo Resources: No gain from arbitration against China steelmaker
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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