Market Insight. Thursday, 15 December, 2016

Transcription

1 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Thursday, 15 December, /03/2013(031743) Major Highlights BAuto unit applies for listing in Philippines Ezra wants Perisai dispute resolved to prevent costly legal battle F&N expects 40% rise in bottle production with new RM45m line Destini contract extended by Defence Ministry SYF Resources 1Q net profit up 8%, revenue jumps 57% Tie-up with Etiqa Takaful to lift Pos Malaysia revenue Rebates for power consumers from Jan to June next year Bursa Malaysia Bursa Malaysia Close Change +/- Change % FBMKLCI 1, FBMEMAS 11, FBM100 11, FBMEMAS Shariah 12, FBM Hijrah Shariah 13, Volume (mn) 1, Value (RMmn) 1, FBMKLCI YTD Chg Scoreboard Close Change +/- Change % Gainers Losers Unchanged Regional Indices Close Change +/- Change % YTD Change DJIA 19, NASDAQ 5, S&P 500 2, FTSE 100 6, Nikkei , HSI 22, SHCOMP 3, KOSPI 2, TWSE 9, STI 2, JCI 5, SET 1, PSEi 6, Market Valuation (PER) FY16 FY17 5Y Average FBMKLCI SHCOMP HSI JCI SET STI PSEi The Research Team bimbresearch@bimbsec.com.my Local & Global Economic News Malaysia investments at RM150.8bn for Jan-Sept 2016 Trump's policies to impact export-driven Asean including Malaysia Fed raises rates by 25bps, sees faster pace of increases in 2017 US industrial output falls most in 8 months China CB advisers rally behind beleaguered yuan as Trump threat looms China property sales growth at lowest since November 2015 KLCI Performance KLCI Year-End Target: 1,720 points Sector Indices Close Change +/- Change % Industrial 3, Consumer Industrial Products Construction Finance 14, Property 1, Plantation 7, Technology KLCI Futures Contracts Dec-16 Jan-17 High 1, , Low 1, , Last 1, , Volume 4, Commodities (Most Recent Close) Close Change +/- (+/- %) % Brent Crude (USD/bbl) WTI Crude (USD/bbl) Gold (USD/ounce) 1, CPO (RM/MT) 3, SMR 20 (sen/kg) Latex (sen/kg) Soybean Oil Forex (per USD1) Close Change +/- Change % MYR JPY EUR SGD BIMB Securities 1

2 Major Rates KLIBOR 3-mth 3.41% KLIBOR 6-mth 3.52% KLIBOR 12-mth 3.62% 5-yr MGS 3.63% 10-yr MGS 4.14% Active Stock Close Change+/- (+/- %) Hibiscus Petroleum Mq Technology Kuantan Flour Mills KNM Group Airasia X Daily Participation Participation (%) Bought (RMm) Sold (RMm) Net (RMm) Local Inst , Local Retail Foreign Total , , Top Gainers Close Change+/- (+/- %) United Plantations British American Tobacco Heineken Malaysia Kuantan Flour Mills Only World Group Top Losers Close Change+/- (+/- %) PPB Group Lafarge Dutch Lady Hong Leong Industries UEM Edgenta

3 LOCAL CORPORATE NEWS BAuto unit applies for listing in Philippines Bermaz Auto (BAuto) said its unit in the Philippines has filed the application for its proposed listing on the Main Board of the Philippine stock exchange. Bermaz Auto, formerly know as Berjaya Auto, said its 60.4%-owned Bermaz Auto Philippines (BAP) had submitted the listing proposal to the Securities and Exchange Commission of the Philippines. The group has earlier said that the IPO would involve 155 million common shares in BAP, representing approximately 15.6% of BAP s enlarged issued and paid-up share capital upon completion of the corporate exercise, at a price to be determined later. Barring unforeseen circumstances, the proposed IPO and listing were expected to be completed by the first half of (Source: StarBiz) Ezra wants Perisai dispute resolved to prevent costly legal battle A major shareholder of Perisai Petroleum Teknologi Bhd has signalled to the beleaguered oil and gas firm that it is willing to settle a current dispute over a share sale agreement (SSA) involving the sum of US$43mil (RM190.92m). Singapore-listed Ezra, which holds a 22.5% stake in Perisai, said that its subsidiary Emas Offshore Ltd (EOL) hopes to work towards resolving various issues relating to SJR Marine (L) Ltd, which is a 51:49 JV between Perisai and EOL. (Source: StarBiz) F&N expects 40% rise in bottle production with new RM45m line F&N has inaugurated a new state-of-the-art polyethylene terephthalate (PET) bottling manufacturing line at its plant in Shah Alam worth RM45m. The PET line has been operational since June 2016 and is expected to increase the group s bottle production by 40% or 8m cases annually. The PET Line 12 Combi, as it is known, is fully automated whereby bottles are blow formed, filled and capped within an integrated system and has an improved efficiency of 12.5%, which improves space utilisation and reduces energy consumption. (Source: The Edge) Destini contract extended by Defence Ministry Destini Bhd has received a three-year extension contract from the Defence Ministry to provide maintenance, repair and overhaul services (MRO) for the Royal Malaysian Air Force worth RM98.2m. Its unit Destini Prima has received a letter of award from the Defence Ministry on Dec 8 for the extension of the contract. Apart from providing MRO services, Destini would supply safety and survival equipment for the Royal Malaysian Air Force. (Source: StarBiz) SYF Resources 1Q net profit up 8%, revenue jumps 57% SYF Resources net profit for the 1QFY17 rose 8.1% to RM11.7m or 1.91 sen per share, from RM10.8m or 1.77 sen per share in 1QFY16. However, the increase was not as big as the rise in revenue due to the completion of an industrial project with higher margin. The revenue jumped 57% to RM148.7m from RM94.9m in 1QFY16 on increased contribution from property development, and sale of boards and rubberwood furniture. Revenue from property development rose by RM43m from ongoing projects due to consistent construction progress and improved sales particularly from its new residential project Lavender Residence. (Source: The Edge) Tie-up with Etiqa Takaful to lift Pos Malaysia revenue Pos expects revenue of between 10% and 15% next year from premiums worth RM10m to be generated through its strategic partnership with Etiqa Takaful. The partnership deal with Etiqa Takaful to offer the pioneer family takaful plan, Pos Khairat Takaful. The plan is available at 700 Pos Malaysia branches nationwide. After the official launch that the service is a way for the company to expand its revenue stream. Mail operations contribute 30% to revenue, and by providing this service we can leverage on our network throughout the country. (Source: Bernama) Rebates for power consumers from Jan to June next year The government has announced a rebate of 1.52 sen per Kwh for nearly all consumers from Jan 1 to June 30 next year due to the lower fuel and generation costs. The imbalance cost pass-through (ICPT) rebate would benefit all consumers except households with consumption of 300kWh and below. This ICPT rebate amounts to RM766.3m and is made possible due to lower LNG price, higher performance of coal power plants and a reduction in the use of gas for electricity generation. The rebate also considered additional gas cost following the government s subsidy rationalisation plan and decision to further increase the piped gas price from the current RM19.70/mmBTU to RM21.20/mmBTU. The new gas price will be effective from Jan 1, (Source: StarBiz) 3

4 LOCAL AND GLOBAL ECONOMIC NEWS Malaysia investments at RM150.8bn for Jan-Sept 2016 Malaysia recorded investments totalling RM150.8bn in the manufacturing, services and primary sectors for the 1 st 9 months of Although, the number of projects dropped 3.7% from RM156.6bn in the same period last year, it will create 117,550 job opportunities. The overall investment performance for the whole of 2016 could be sustained, despite the challenging global environment. Domestic investments accounted for 74.8% of the total investments at RM112.8bn, while foreign investments made up the rest. (Source: Bernama) Trump's policies to impact export-driven Asean including Malaysia The economies of export-driven Malaysia, Singapore, Thailand and Vietnam would be impacted under US President elect Donald Trump's shift towards lower levels of US imports and FDI. These 4 countries face adverse consequences, given that global exports account for 50%-150% of these countries' GDP. While the nature of policies under the next US administration is uncertain, Trump's campaign proposals indicate a shift towards lower levels of US imports and FDIs. (Source: Reuters) Fed raises rates by 25bps, sees faster pace of increases in 2017 The US Fed raised interest rates by a quarter point and signaled a faster pace of increases in 2017 as the Trump administration takes over with promises to boost growth through tax cuts, spending and deregulation. The rate increase, regarded as a virtual certainty by financial markets in the wake of a string of generally strong economic reports, raised the target fed funds rate 25 bps to between 0.50% and 0.75%. In view of realized and expected labor market conditions and inflation, the committee decided to raise the target range. (Source: Reuters) US industrial output falls most in 8 months US retail sales barely rose in November and industrial production recorded its biggest drop in 8 months, suggesting some loss of momentum in economic growth in the 4Q. The weak retail sales and industrial output readings reported did not deter the Fed from raising interest rates 25bp to between 0.50% and 0.75%. The Fed signaled a faster pace of increases in 2017, against the backdrop of steadily rising inflation and a tightening labor market. (Source: Reuters) China CB advisers rally behind beleaguered yuan as Trump threat looms In what appeared to be an effort to shore up investor confidence in the beleaguered Chinese yuan, a phalanx of cb advisers signalled their readiness to defend the currency and said a stabilising economy will temper future depreciation pressure. In November, the yuan hit an almost 8-1/2 year low against a broadly strengthening dollar, forcing authorities to tighten outbound investment as they scrambled to staunch capital outflows. But recent data showing a stabilising economy have provided some support to the yuan. Deflation had ended, and overcapacity and corporate debt issues were starting to get resolved. (Source: Reuters) China property sales growth at lowest since November 2015 Home sales in China slowed sharply in November in the wake of government cooling measures, and new property investment slowed significantly from recent record levels suggesting a key economic driver could be losing steam. Property sales growth slid in November to 7.9% from a year ago, its lowest since November 2015, and well short of October s 26.4% increase. It will continue to cool, and fall to negative growth next year since the base figures were so high. If the government doesn t ramp up infrastructure spending, the expected decline in property will certainly drag on growth. (Source: Reuters) Japan, EU in talks seeking free trade deal by year-end Japan and the EU are holding last-ditch talks to try reach a broad FTA by the end of the year. The 2-way trade talks have taken on greater significance after US President-elect Donald Trump said Washington would withdraw from the TPP, a 12- nation deal Prime Minister Shinzo Abe has said is key to his reforms and once a pillar of Washington's pivot to the Asia- Pacific. Japan is seeking cuts in EU tariffs on Japanese autos, auto parts and electric devices. Tokyo also wants the EU to cut red tape it says Japanese companies face doing business with the EU. (Source: Reuters) Indonesia CB seen holding key rate in wake of Fed decision Indonesia's CBis widely expected to keep its main policy rates on hold, just hours after the Fed concludes a meeting at which it is expected to raise US interest rates. A Fed rate hike, which would be the 1 st in a year, could lure more capital away from emerging markets such as Indonesia. Earlier this year, South-East Asia's largest economy enjoyed relatively high inflows into its stock and bond markets, but the country is vulnerable to capital outflows. Some funds left the country after Donald Trump's surprise victory in the US election in November. (Source: Reuters) 4

5 ECONOMIC CALENDAR Date Time Country Event Survey Actual Prior Revised 12/15/ :00 IC International Reserves Nov b 799b -- 12/15/ :00 US FOMC Rate Decision (Upper Bound) 14-Dec 0.75% 0.75% 0.50% -- 12/15/ :00 US FOMC Rate Decision (Lower Bound) 14-Dec 0.50% 0.50% 0.25% -- 12/15/ :30 NZ BusinessNZ Manufacturing PMI Nov /15/ :45 NZ Value of All Buildings SA QoQ 3Q 2.10% 1.40% 5.50% 5.30% 12/15/ :50 JN Japan Buying Foreign Bonds 9-Dec b -- 12/15/ :50 JN Japan Buying Foreign Stocks 9-Dec b -- 12/15/ :50 JN Foreign Buying Japan Bonds 9-Dec b -- 12/15/ :50 JN Foreign Buying Japan Stocks 9-Dec b -- 12/15/ :00 AU Consumer Inflation Expectation Dec % -- 12/15/ :30 AU Employment Change Nov 17.5k k 10.9k 12/15/ :30 AU Unemployment Rate Nov 5.60% % -- 12/15/ :30 AU Full Time Employment Change Nov k 42.2k 12/15/ :30 AU Part Time Employment Change Nov k -31.3k 12/15/ :30 AU Participation Rate Nov 64.50% % -- 12/15/ :30 JN Nikkei Japan PMI Mfg Dec P /15/ :30 AU RBA FX Transactions Government Nov A$450m -- 12/15/ :30 AU RBA FX Transactions Market Nov A$439m -- 12/15/ :30 AU RBA FX Transactions Other Nov A$26m -- 12/15/ :00 SI Retail Sales SA MoM Oct % -- 12/15/ :00 SI Retail Sales Ex Auto YoY Oct % -- 12/15/ :00 SI Retail Sales YoY Oct 0.30% % -- 12/15/ :30 NE Retail Sales YoY Oct % 1.10% 12/15/ :00 JN Machine Tool Orders YoY Nov F % -- 12/15/ :30 NE Unemployment Rate Nov % -- 12/15/ :00 NO Trade Balance NOK Nov b -- 12/15/ :00 FI Retail Sales Volume YoY Oct F % -- 12/15/ :00 FI GDP Indicator WDA (YoY) Oct % -- 12/15/ :00 TU Unemployment Rate Sep 11.40% % -- 12/15/ :00 EC EU27 New Car Registrations Nov % -- 12/15/ :00 FI Current Account Balance Oct b -- 12/15/ :00 DE PPI MoM Nov % -- 12/15/ :00 DE PPI YoY Nov % -- 12/15/ :00 TU Central Gov't Budget Balance Nov b -- 12/15/ :00 FR Markit France Manufacturing PMI Dec P /15/ :00 FR Markit France Services PMI Dec P /15/ :00 FR Markit France Composite PMI Dec P /15/ :30 SW Unemployment Rate Nov 6.20% % -- 12/15/ :30 SW Unemployment Rate Trend Nov % -- 12/15/ :30 SW Unemployment Rate SA Nov 6.80% % -- 12/15/ :30 GE Markit Germany Services PMI Dec P /15/ :30 GE Markit/BME Germany Composite PMI Dec P /15/ :30 SZ SNB 3-Month Libor Lower Target Range 15-Dec -1.25% % -- 12/15/ :30 SZ SNB 3-Month Libor Upper Target Range 15-Dec -0.25% % -- 12/15/ :30 SZ SNB Sight Deposit Interest Rate 15-Dec -0.75% % -- 12/15/ :00 NO Deposit Rates 15-Dec 0.50% % -- 12/15/ :00 EC Markit Eurozone Manufacturing PMI Dec P /15/ :00 EC Markit Eurozone Services PMI Dec P /15/ :00 EC Markit Eurozone Composite PMI Dec P /15/ :30 UK Retail Sales Ex Auto Fuel MoM Nov 0.00% % -- 12/15/ :30 UK Retail Sales Ex Auto Fuel YoY Nov 6.00% % -- Source: Bloomberg, BIMB Securities 5

6 Stocks Closing Price PIVOT POINT ANALYSIS Pivot S3 S2 S1 Point R1 R2 R3 Est. Weighting. FBMKLCI Index n.a. FBM Hijrah Shariah n.a. Autos APM Automotive % Delloyd Ventures n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % MBM Resources % Tan Chong % UMW % Building Materials Ann Joo Resource % Alum Co of Malay % Choo Bee Metal % CSC Steel % Eksons Corp % Engtex n.a. n.a. n.a. n.a. n.a. n.a. n.a % Goh Ban Huat n.a. n.a. n.a. n.a. n.a. n.a. n.a % Hiap Teck % Jaks Resources % Java % Kim Hin Ind % Kinsteel % Lafarge M Cement % Lion Corp n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Lion Industries % Malaysia Smelting % Masteel % Melewar Ind % MTD ACPI % Pantech % Perwaja % Press Metal % Southern Steel % Tasek % Tong Herr n.a. n.a. n.a. n.a. n.a. n.a. n.a % Conglomerates Cahya Mata Sarawak % Lion Diversified % Hap Seng Cons % MMC % Sime Darby % YTL Corp % Construction AZRB % Ekovest % Fajar Baru % Favelle Favco % Gamuda % Hock Seng Lee % IJM Corp % Kimlun % KKB Engineer % MRCB % 6

7 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting Mudajaya % Muhibbah % Naim Hold % Sunway Hldgs % TRC Synergy % TSR Capital % Zelan % Consumer/Retail Aeon Co (M) % Ajinomoto % Apollo Food % Bonia % CI Holdings % Cocoaland % Dutch Lady % Guan Chong % Hai-O Ent % Hovid % Hup seng Inds % K-Star Sports % Multi Sports n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Padini % Parkson Holdings % Pelikan International % Poh Kong n.a. n.a. n.a. n.a. n.a. n.a. n.a % QL Resources % Silver Bird n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Three-A Resource % Xingquan Int l % Yee Lee Corp % Zhulian % Education HELP Int l n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Masterskill n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % SEG Int l % Finance BIMB Hold % Syarikat Takaful % Healthcare Apex Healthcare % CCM Duopharma % KPJ Healthcare % Faber n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Manufacturing CBIP % Chin Well % Daibochi Plastic % Evergreen Fibre % George Kent % Guh Holdings % Hil Industries % Hong Leong Ind % 7

8 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting KYM Hldgs n.a. n.a. n.a. n.a. n.a. n.a. n.a % MWE Hold % Muda Hold n.a. n.a. n.a. n.a. n.a. n.a. n.a % NTPM Hold % Nylex Malaysia % Perstima % Scientex % Sino Hua-an % SLP Resources % Wellcall % Media Media Chinese % Star Publication % Utusan Melayu % Oil & Gas Alam Maritim % Daya Materials % Dayang Ent % Deleum % Dialog % ESSO Malaysia % KNM % MMHE % Perisai Petroleum % Petra Energy % Pet Chem % Pet Dag % Pet Gas % Ramunia Hold % SAAG Cons. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Sapurakencana % Scomi Eng n.a. n.a. n.a. n.a. n.a. n.a. n.a % Scomi % Shell Refining % Tanjung Offshore % Wah Seong % Petra Perdana n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Plantation Batu Kawan % BLD Plantation n.a. n.a. n.a. n.a. n.a. n.a. n.a % Cepat Wawasan % Genting Plant % Golden Land % Gopeng % Hap Seng Plant % IJM Plant % Inch Ken Kajang % IOI % Keck Seng Malay n.a. n.a. n.a. n.a. n.a. n.a. n.a % Kim Loong % Kretam Holdings % KLK % Kulim Malaysia n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Rimbunan Sawit % 8

9 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting Riverview Rubber % Sarawak Plant % TDM % TH Plant % Tradewinds Plant n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % United Plant % Power TNB % YTL Power % Property A & M Realty n.a. n.a. n.a. n.a. n.a. n.a. n.a % Am Corp Prop % Symphony Life Bh % Crescendo Corp n.a. n.a. n.a. n.a. n.a. n.a. n.a % Daiman Develop % Damansara Realty % Dijaya n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Dutaland % E&O % Global Oriental % Glomac % Hunza Properties n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % IJM Land n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Ivory Properties % KLCC Property n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % KSL Hold % Kump Hartanah n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Kump Perangsang % LBS Bina % Magna Prima % Mah Sing % Malton % MK Land % Nadayu n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Plenitude % Selangor Prop % Selangor Dredging % SP Setia % Sunway % Suria Capital % Talam Corp n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Tebrau Teguh n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % UEM Land n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % WCT n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Wing Tai % YNH Property % YTL Land & Dev % Rubber Glove Adventa % Hartalega % Kossan % Latexx Partners n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Rubberex % Supermax Corp % 9

10 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting Top Glove % Technology Compugates % D&O Green Tech % ETI Tech n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Formis Resources n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Formosa Prosonic % Frontken % Globetronics % JCY Int l % Key Asic % MPI % Notion V-Tec % Panasonic Man % Supportive n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Symphony House n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Uchi Tech % Unisem % VS Industry % Telcos Axiata % DiGi.Com % Green Packet % Maxis % Telekom Malaysia % Time Dotcom % Timber Jaya Tiasa % Subur Tiasa n.a. n.a. n.a. n.a. n.a. n.a. n.a % WTK % Transport/Logistics Bintulu Port n.a. n.a. n.a. n.a. n.a. n.a. n.a % Airasia % Century Logistic % Cycle & Carriage % Hubline % Integrated Log % Integrax n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Konsortium n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Maybulk % MISC % NCB Hold n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Scomi Energy Ser % Water & Infrastructure PBA Hold % Puncak Niaga % Salcon % Taliworks Corp n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Lingkaran Trans % Protasco % 10

11 Stocks Closing Price S3 S2 S1 Pivot Point R1 R2 R3 Est. Weighting Ancom % Asia File % Boustead Heavy n.a. n.a. n.a. n.a. n.a. n.a. n.a % Eden Inc % Fima Corp % Kumpulan FIMA % KUB Malaysia % Pie Industrial % Southern Acids % Mega First % Coastal Contract % Time Engineering n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Sealink Int'l % Shin Yang n.a. n.a. n.a. n.a. n.a. n.a. n.a % Jobstreet Corp n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a % Myeg Services % Pos Malaysia % Picorp % Lion Forest % Note: R S Est. Weight = Resistance = Support = Based on FBMah Mkt. Cap 11

12 DEFINITION OF RATINGS BIMB Securities uses the following rating system: STOCK RECOMMENDATION BUY Total return (price appreciation plus dividend yield) is expected to exceed 10% in the next 12 months. TRADING BUY Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain. HOLD Share price may fall within the range of +/- 10% over the next 12 months TAKE PROFIT Target price has been attained. Fundamentals remain intact. Look to accumulate at lower levels. TRADING SELL Share price may fall by more than 15% in the next 3 months. SELL Share price may fall by more than 10% over the next 12 months. NOT RATED Stock is not within regular research coverage. SECTOR RECOMMENDATION OVERWEIGHT The Industry as defined by the analyst s coverage universe, is expected to outperform the relevant primary market index over the next 12 months NEUTRAL The Industry as defined by the analyst s coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months UNDERWEIGHT The Industry as defined by the analyst s coverage universe, is expected to underperform the relevant primary market index over the next 12 months Applicability of ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies. Disclaimer 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 BIMB Securities Sdn may from time to time have a position in or either the securities mentioned herein. Members of the BIMB 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 judgements as of this date and are subject to change without notice. BIMB Securities Sdn accepts no liability for any direct, indirect or consequential loss arising from use of this report. Published by BIMB SECURITIES SB ( X) A Participating Organisation of Bursa Malaysia Securities Level 32, Menara Multi Purpose, Capital Square, No. 8 Jalan Munshi Abdullah, Kuala Lumpur Tel: Fax: Azharuddin Nordin Head of Research 12