FW: AmBank Research - Unisem: Better earnings visibility in 2HFY18 HOLD, 3 Aug 2018

 

 

STOCK FOCUS OF THE DAY

Unisem: Better earnings visibility in 2HFY18                                         HOLD

 

We maintain our HOLD recommendation on Unisem with a lower fair value of RM2.50/share (vs. RM2.56/share). Our fair value is pegged to an FY19F PE of 14x. We have trimmed our FY18F-FY20F net profit estimates by 2-3% to account for marginal increase in labour cost.

 

Unisem’s 2QFY18 core net profit came in below our expectation and consensus at RM20.7mil (-49.5% YoY; +30% QoQ). The core net profit is derived after stripping out a foreign exchange gain of RM10mil.

Cumulatively, 1HFY18 core net profit of RM36.7mil (-57.5% YoY) accounted for 39% of our full-year forecast and 32% of consensus.

 

 

Others:

Telekom Malaysia: Rising competition from last mile access         HOLD

 

 

 

ECONOMIC HIGHLIGHT

UK: Pound remains vulnerable despite rate hike

 

 

NEWS HIGHLIGHTS

Telecommunication: Opening up fibre market; fixed-line broadband for all telecos

Malakoff: Under selling pressure over Alam Flora deal

Construction Sector: Pan Borneo Highway review to be finalised by September

F&N: Earnings up in Q3

 

 

 

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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