PP16795/03/2013(031743) Aug-16

Transcription

1 Tuesday, 8 August, 2017 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Research Team research@bimbsec.com.my PP16795/03/2013(031743) Corporate News Economic News Padini announces registration in Cambodia IOI Corp pays 5 sen second interim dividend Kronologi Asia fixes private placement shares at 79 sen each PIE Industrial 2Q net profit up 74.5% on higher revenue E&O shareholders approve RM766m land sale at Seri Tanjung Pinang project Bank Negara international reserves rise to USD99.4bn Cagamas issues RM410m bonds Oil slides as output rises at Libya's largest oil field Indonesia 2Q GDP growth disappoints amid consumption 'mystery' Philippine c.bank seen keeping rates steady, inflation may have peaked Bursa Malaysia KLCI Performance Close Change +/- Change % 1820 FBMKLCI 1, FBMEMAS 12, FBM100 12, FBMEMAS Shariah 12, FBM Hijrah Shariah 13, Volume (m) 1, Value (MYR m) 1, FBMKLCI YTD performance KLCI Year-End Target: 1,800 points Regional Indices Commodities (Last Close) Close Change +/- Change % YTD Change (%) Close Change +/- Change % DJIA 22, Brent Crude (USD/bbl) NASDAQ 6, WTI Crude (USD/bbl) S&P 500 2, CPO (RM/MT) 2, FTSE 100 7, Gold (USD/ounce) 1, Nikkei , Latex (sen/kg) HSI 27, Soybean Oil SHCOMP 3, KOSPI 2, Forex TWSE 10, (per USD) BIMB (YE Forecast) Close Change +/- Change % STI 3, MYR JCI 5, JPY SET 1, EUR PSEi 7, SGD

2 Major Rates Daily Participation % Participation Bought Sold Net KLIBOR 3-mth 3.43 (%) (MYR m) (MYR m) (MYR m) KLIBOR 6-mth 3.55 Local Insti KLIBOR 12-mth 3.63 Local Retail yr MGS 3.69 Foreign yr MGS 4.00 Total , , Performance of BIMB Stock Coverage Top Gainers Source: Bank Negara Malaysia Top Losers Source: The Sun, BIMB Securities Research Close Change +/- Change % Close Change +/- Change % Padini % IOI Properties % Sunway Construction % Top Glove % TH Plantations % MyEg % Malakoff % WCT % Econpile % Tambun Indah % 2

3 CORPORATE NEWS Padini announces registration in Cambodia Padini has completed the registration of Padini (Cambodia) Co Ltd in Cambodia on Aug 2 for a cash consideration of 20m Riels (USD5,000). Padini is the holder of 100% of the total shares in Padini Cambodia, which comprise of 1,000 shares, each with a par value of 20,000 Riels. Padini Cambodia is private limited company incorporated in Cambodia on July 14, 2017, and is involved in the trading of apparel, shoes and accessories. Padini recorded a profit of RM34.82m in its 3QFY17, compared to RM35.13m in the previous corresponding period. The registration of the subsidiary in Cambodia is not expected to have any material impact on the earnings and net assets of the company for the FY18. (Source: StarBiz) IOI Corp pays 5 sen second interim dividend IOI Corp has announced a second interim single tier dividend of 5 sen per share for the FY17. The dividend is payable on Sept 15 with the ex-date fixed for Aug 24. For the 3QFY17, the group posted a net profit of RM305.3m, a decline of 58.14%, from RM729.4m a year earlier. Its quarterly revenue, however, grew 21% to RM3.47bn from RM2.87bn. For the 9MFY17, its net profit slid 38% to RM425.7m from RM688.7m a year earlier, while revenue increased 17% to RM10.43bn from RM8.92bn. (Source: The Edge) Kronologi Asia fixes private placement shares at 79 sen each Kronologi Asia has fixed the price of the shares to be issued under its private placement exercise at 79 sen apiece. This represents a discount of about 2.98% to the 5-day volume weighted average market price of Kronologi Asia shares up to Aug 4. On May 29, Kronologi Asia announced that it intends to raise up to RM12.7m by placing out some 27m shares. At 79 sen each, the company is expected to raise gross proceeds of RM21.36m if all the placement shares are placed out. It will use the bulk of the proceeds to repay its transnational infrastructure equipment, future business expansion, working capital and estimated expenses in relation to the proposed private placement. (Source: The Edge) PIE Industrial 2Q net profit up 74.5% on higher revenue PIE Industrial posted a 74.48% increase in net profit for the 2QFY17 to RM10.7m or 2.79 sen per share, from RM6.13m or 1.6 sen a year on higher revenue achieved, lower operating expenses and reversal of slow moving inventory. Its quarterly revenue was up 29.57% to RM176.07m from RM135.89m a year ago mainly attributable to higher demand from existing customers for electronics manufacturing activities, raw wire and cable products and trading activities. For the cumulative 6MFY17, its net profit rose % to RM22.29m or 5.8 sen a share compared with RM8.24m or 2.14 sen a share a year ago. Meanwhile, its revenue was 32.21% higher at RM337.94m from RM255.61m last year. Going forward, with increasing orders from existing customers and on-going new projects with potential customers, the group foresees a steady growth of revenue in the year (Source: The Edge) E&O shareholders approve RM766m land sale at Seri Tanjung Pinang project Eastern & Oriental Bhd's (E&O) shareholders have approved the disposal of development land measuring 1.445m sq ft at the Seri Tanjung Pinang Phase 2 project in Penang for RM766m. The land sold by its subsidiary Tanjung Pinang Development Sdn Bhd (TPD) to Kumpulan Wang Persaraaan (Diperbadankan) (KWAP) covers 20% of the net development land on Phase 2A (STP2A) of the reclamation project on the northeast coast of Penang island, for which TPD has been granted the concession rights to reclaim and develop. STP2A, the first phase of the 760-acre project, has a total gross area of about 250 acres. The proceeds from the land disposal will be used to meet the funding requirements for STP2A reclamation and infrastructure works. (Source: The Edge) 3

4 ECONOMIC NEWS Bank Negara international reserves rise to USD99.4bn Bank Negara international reserves rose US$300m to USD99.4bn as at July 31, 2017 from USD99.1bn on July 14, The central bank reserves, in ringgit terms, rose to RM427bn from RM425.4bn as at July 14. The reserves position was sufficient to finance 7.9 months of retained imports and was 1.1 times the short-term external debt. The main components of the reserves are foreign currency reserves (USD93bn), International Monetary Fund reserves position USD800m, Special Drawing Rights or SDRs (USD1.1bn), gold (USD1.5bn) and other reserve assets (US$3bn). (Source: StarBiz) Cagamas issues RM410m bonds Cagamas is issuing RM410m worth of conventional and Islamic bonds to raise funds, which will fund its housing loan purchases from the Malaysian financial system. Its one-year RM410m scheme comprised RM180m worth of conventional medium term notes and RM230m Islamic medium term notes. Renewed interest among foreign fixed income investors was due to Bank Negara Malaysia's measures to improve liquidity and trading activity in bond markets. (Source: The Edge) Oil slides as output rises at Libya's largest oil field Oil prices fell as much as 2% on Monday on selling triggered by a rebound in production from Libya's largest oil field along with worries about higher output from OPEC and the United States. Output at Libya's Sharara field was returning to normal after a brief disruption by armed protesters in the coastal city of Zawiya, the National Oil Corporation (NOC) said. The field has boosted Libya's oil production, which climbed to more than 1m bpd in late June. Doubts have emerged about the effectiveness of output cuts by the Organization of the Petroleum Exporting Countries and other big producers including Russia. OPEC output hit a 2017 high in July and its exports hit a record. (Source: Reuters) Indonesia 2Q GDP growth disappoints amid consumption 'mystery' Indonesia s GDP grew more slowly than expected in the 2Q, as private consumption remained lethargic, adding to signs that South-East Asia s largest economy is stuck in a low gear and may need more stimulus. The resource-rich economy grew 5.01% in April-June from a year earlier, slightly slower than forecast and unchanged from the first quarter s pace. President Joko Widodo promised to revive growth to 7% during his 5-year term, which ends in This year, he set a target of 5.2%. Private consumption, which accounts for more than half of Indonesia s GDP, expanded slightly faster in the 2Q compared to the 1Q, but grew more slowly against a year earlier. (Source: Reuters) Philippine c.bank seen keeping rates steady, inflation may have peaked The Philippine central bank looks certain to keep its benchmark interest rate steady with inflation expected to settle comfortably within its target this year. All 11 economists in the poll predicted the Bangko Sentral ng Pilipinas (BSP) would leave the overnight borrowing rate at 3.0%. Inflation was expected to remain manageable over the policy horizon with the average rate expected to settle near the midpoint of the central bank's 2-4% inflation target this year and until Inflation appeared to have peaked, due in part to easing fuel prices. Annual inflation averaged 3.1% in the 7 months to July this year. (Source: Reuters) 4

5 ECONOMIC CALENDAR Date Time Country Event Period Survey Actual Prior Revised 08/08/ :50 JN BoP Current Account Balance Jun 860.5b b -- 08/08/ :50 JN BoP Current Account Adjusted Jun b b -- 08/08/ :50 JN Trade Balance BoP Basis Jun 571.5b b -- 08/08/ :00 GE Trade Balance Jun 23.0b b -- 08/08/ :00 GE Current Account Balance Jun 24.5b b -- 08/08/ :00 GE Exports SA MoM Jun 0.20% % 1.50% 08/08/ :00 GE Imports SA MoM Jun 0.20% % 1.30% 08/08/ :45 FR Trade Balance Jun -5050m m -- 08/08/ :45 FR Current Account Balance Jun b -- 08/08/ :00 SP House transactions YoY Jun % -- 08/08/ :00 HU Trade Balance Jun P 1045m m -- 08/08/ :00 GR Industrial Production YoY Jun % -- 08/08/2017 CH Imports YoY Jul 18.00% % -- 08/08/2017 CH Trade Balance Jul $45.00b -- $42.80b $42.75b 08/08/2017 CH Exports YoY CNY Jul 14.80% % -- 08/08/2017 CH Imports YoY CNY Jul 22.60% % -- 08/08/2017 CH Trade Balance CNY Jul b b -- 08/08/2017 CH Exports YoY Jul 11.00% % -- 08/09/ :50 JN Money Stock M2 YoY Jul 3.90% % -- 08/09/ :50 JN Money Stock M3 YoY Jul 3.30% % -- 08/09/ :30 NE Manufacturing Production MoM Jun % -- 08/09/ :30 NE Manufacturing Production YoY Jun % -- 08/09/ :30 NE Industrial Sales YoY Jun % -- 08/09/ :00 SO Trade Balance Jun m -- 08/09/ :00 DE Current Account (Seasonally Adjusted) Jun b -- 08/09/ :00 LN Trade Balance Jun b -- 08/09/ :00 IT Industrial Production NSA YoY Jun 3.40% % -- 08/09/ :00 IT Industrial Production WDA YoY Jun 3.50% % -- 08/09/ :00 IT Industrial Production MoM Jun 0.20% % -- 08/09/ :00 PO Trade Balance Jun m -- 08/10/ :50 JN Machine Orders MoM Jun 3.60% % -- 08/10/ :50 JN Machine Orders YoY Jun -1.10% % -- 08/10/ :00 FI Industrial Production MoM Jun % -- 08/10/ :00 FI Industrial Production WDA YoY Jun % -- 08/10/ :45 FR Industrial Production MoM Jun -0.60% % -- 08/10/ :45 FR Industrial Production YoY Jun 3.10% % -- 08/10/ :45 FR Manufacturing Production MoM Jun -1.00% % -- 08/10/ :45 FR Manufacturing Production YoY Jun 3.20% % -- 08/10/ :30 SW Industrial Production MoM Jun -0.30% % -- 08/10/ :30 SW Industrial Production NSA YoY Jun % -- 08/10/ :30 SW Industrial Orders MoM Jun % -- 08/10/ :30 SW Industrial Orders NSA YoY Jun % -- 08/10/ :00 IT Trade Balance EU Jun m -- 08/10/ :00 IT Trade Balance Total Jun m -- 08/10/ :30 UK Industrial Production MoM Jun 0.10% % -- 08/10/ :30 UK Industrial Production YoY Jun -0.10% % -- 08/10/ :30 UK Manufacturing Production MoM Jun 0.00% % -- 08/10/ :30 UK Manufacturing Production YoY Jun 0.60% % -- 08/10/ :30 UK Visible Trade Balance GBP/Mn Jun /10/ :30 UK Trade Balance Jun /10/ :30 SV Industrial Production MoM Jun % -- 08/10/ :30 SV Industrial Production YoY Jun % -- 08/10/ :30 US PPI Final Demand MoM Jul 0.10% % -- DEFINITION OF RATINGS 5

6 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. Printed and 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 6