Market Insight. Wednesday, 7 September, 2016

Transcription

1 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Wednesday, 7 September, /03/2013(031743) Major Highlights Tenaga inks PPA with SIPP Energy for Pasir Gudang power plant OSK Holdings close to taking PJ Development private SCGM ramping up production of thermo-vacuum products Sime Darby's new 316m shares to be placed out at 5% discount AirAsia to lease two aircraft from Indonesia AirAsia Extra Sunway in JV to develop executive condo project in Singapore Bursa Malaysia Bursa Malaysia Close Change +/- Change % FBMKLCI 1, FBMEMAS 11, FBM100 11, FBMEMAS Shariah 12, FBM Hijrah Shariah 14, Volume (mn) 1, Value (RMmn) 1, FBMKLCI YTD Chg Scoreboard Close Change +/- Change % Gainers Losers Unchanged Regional Indices Close Change +/- Change % YTD Change DJIA 18, NASDAQ 5, S&P 500 2, FTSE 100 6, Nikkei , HSI 23, SHCOMP 3, KOSPI 2, TWSE 9, STI 2, JCI 5, SET 1, PSEi 7, 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 Bank Negara seen keeping key rate at 3% Bank Negara s international reserves at RM391.9bn as at Aug 30 Malaysia economic growth pattern higher than average G20 economies well placed to deal with Brexit uncertainty - communique Australia leaves interest rates on hold KLCI Performance KLCI Year-End Target: 1,729 points Sector Indices Close Change +/- Change % Industrial 3, Consumer Industrial Products Construction Finance 14, Property 1, Plantation 7, Technology KLCI Futures Contracts Sep-16 Oct-16 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) 2, 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 3.40% KLIBOR 6-mth 3.53% KLIBOR 12-mth 3.63% 5-yr MGS 3.12% 10-yr MGS 3.52% Active Stock Close Change+/- (+/- %) Sanichi Technology Iris Corp M3 Technologies Asia Borneo Oil Airasia X Daily Participation Participation (%) Bought (RMm) Sold (RMm) Net (RMm) Local Inst , Local Retail Foreign Total , , Top Gainers Close Change+/- (+/- %) British American Tobacco Lafarge Malaysia United Plantations Panasonic Nestle Top Losers Close Change+/- (+/- %) F&N Advanced Packaging Msm Ajinomoto Hong Leong

3 LOCAL CORPORATE NEWS Tenaga inks PPA with SIPP Energy for Pasir Gudang power plant TNB has signed a 21-year power purchase agreement (PPA) with SIPP Energy SB s unit which will build a power plant in Pasir Gudang, Johor. SIPP s unit Southern Power Generation will construct, own, operate and maintain a gas-fired combined cycle electricity generating plant with a total nominal capacity of 1,440 MW. The plant comprises 2 (generating blocks, with each generating block having a capacity of 720MW and an expected commercial operation date of Jan 1, The PPA governs the obligations of the parties to sell and purchase the generating capacity and, to the extent despatched, the electrical energy generated by the facility. (Starbiz) OSK Holdings close to taking PJ Development private OSK Holding has crossed the 90% shareholding threshold to take PJ Development Holdings (PJ Dev) private in the company s latest takeover offer. OSKH had acquired 4.292m PJ Dev shares and 3.998m of its warrants from Sept 1 to Sept 5, raising its shareholding to 90.11% of the developer s paid-up capital (excluding treasury shares) and 70.61% of the total outstanding warrants. On Aug 30, it was making a cash takeover offer of RM1.50/share for the remaining PJ Dev shares it did not own and 50 sen/warrant. (Starbiz) SCGM ramping up production of thermo-vacuum products Plastic packaging firm SCGM is ramping up production capacity to 36m kg/year from 25m to cater to rising demand for the company s biodegradable thermo-vacuum products. To achieve this, it has rented a 24,000 sq ft facility in Kulai, Johor as its new plant in Kulai will only be completed in The idea was mooted to cater for the rising demand from both the local and exports markets. SCGM s existing plant in the Sinkang industrial area had already reached 85% capacity utilisation rate. (Starbiz) Sime Darby's new 316m shares to be placed out at 5% discount Sime Darby s new m new shares to be placed out would be at no more than 5% below the volume weighted average price (VWAP) for the preceding 5 market days. The issue price of the placement shares would be determined via bookbuilding and fixed by the board. At midday, Sime Darby's share price was up 2 sen to RM7.84. On Aug 23, Sime Darby announced plans to raise up to RM2.37bn from the share placement at about RM7.51 sen in a move to reduce its borrowings and for capital expenditure and working capital. (Starbiz) AirAsia to lease two aircraft from Indonesia AirAsia Extra AirAsia has entered into a wet lease agreement with PT Indonesia AirAsia Extra (IAAX) to lease two Airbus A330 widebody aircraft for US$12.9m (RM52.5m). One aircraft would be leased from Sept 16, 2016 till March 15, 2017 for US$9.8m (RM39.9m). The other s lease would be from Oct 1, 2016 till Nov 30, 2016 for US$3.1m (RM12.62m). The leasing was due to operational requirements. The lease of the aircraft is in the form contained in the agreement which shall include the flight crew, all maintenance of the aircraft and insurance. The agreement provided up to additional 6 crew sets daily to AirAsia s manpower supply. (Starbiz) Sunway in JV to develop executive condo project in Singapore Sunway Bhd and Singapore-based real estate developer Hoi Hup Realty Pte Ltd have won a tender to buy a 21,015 sq m land in Singapore slated for executive condominium development for S$240.95m (RM725m). Its indirect unit Sunway Developments Pte Ltd (SDPL) and Hoi Hup were acquiring the 99-year leasehold land at Anchorvale Lane, Sengkang, from the Housing and Development Board (HDB) of Singapore. The land will be acquired by a proposed new JV company at the tender price, in which Hoi Hup, SDPL, Oriental Worldwide Investments Inc and Azuki Investments will have equity interest in the proportion of 62:30:5:3. (Starbiz) 3

4 LOCAL AND GLOBAL ECONOMIC NEWS Bank Negara seen keeping key rate at 3% Malaysia's CB is expected to keep its benchmark rate unchanged, as the country's economy is seen to be coping with global market volatility in the wake of Britain's June Brexit vote. Less than 2 weeks after the vote, BNM made its 1 st rate cut in 7 years, slashing the OPR by 25bp to 3.00 %. The 1 st since the cut, 11 of 12 economists forecast no change to the rate, as Malaysia's exports and domestic consumption remained resilient despite worries about the global economy. There have been more signs that the initial impact of Brexit has not been as severe as expected. (Reuters) Bank Negara s international reserves at RM391.9bn as at Aug 30 BNM s international reserves amounted to RM391.9bn (equivalent to US$97.5bn) as at Aug 30, the same amount of international reserves at Aug 15. The reserves position was sufficient to finance 8.1 months of retained imports and was 1.2 times the short-term external debt. The main components of the international reserves were foreign currency reserves (US$89.7bn); IMF reserves position (US$0.8bn); SDR (US$1.1bn); gold (US$1.5bn); and other reserve assets (US$4.4bn). Its total assets stood at RM bn. The CB s assets included gold and foreign exchange and other reserves including SDR (RM bn), Malaysian government papers (RM1.643bn), deposits with financial institutions (RM2.685bn), loans and advances (RM7.558bn), land and buildings (RM2.113bn), and other assets (RM6.338bn). (Bernama) Malaysia economic growth pattern higher than average Malaysia s economic growth pattern is still higher than the average and will continue to be positive moving forward despite softer economic conditions regionally. Malaysia s economic growth would be supported by the government s pro-growth policies, including the budget. The Malaysian economy grew by 4% in the 2Q of this year, leading to a 4.1% growth in the 1H2016, in line with the moderate pace of the global economy. Domestic demand was stronger during the quarter but growth was weighed down by the continued decline in net exports and a significant drawdown in stocks. (Bernama) G20 economies well placed to deal with Brexit uncertainty - communique Britain s vote to exit the EU added uncertainty to the global economic outlook but G20 economies were well positioned to deal with the economic and financial fallout. Monetary policy alone could not lead to balanced growth, and pledged to not devalue their currencies for competitive gain. The statement was first published in French on the website of the French Presidency. (Reuters) Australia leaves interest rates on hold Australia s CB held interest rates steady at a record low 1.50%, as it waits for more information on inflation pressures before signalling its next move. Rates have been cut twice in the past 4months, including by 25 basis points in August, in a bid to boost sluggish inflation as the economy transitions towards non-resources growth after a mining investment boom. Official figures in July showed inflation fell to a 17-year low of 1.0% in April-June, well off the Reserve Bank of Australia (RBA) s target of 2.0%-3.0%. Last month s rate cut is expected to take some time to feed through to possibly pushing up consumer prices, with the RBA s own forecasts in May expecting inflation to only lift towards the target band in late 2017 or in (AFP) 4

5 ECONOMIC CALENDAR Date Time Country Event Survey Actual Prior Revised 09/07/ :11 UR Unemployment Rate Jul % 7.50% -- 09/07/ :49 PY GDP NSA YoY 2Q % 1.50% -- 09/07/ :56 ED International Reserves Aug /07/ :45 NZ Mfg Activity Volume QoQ 2Q % -1.20% -0.70% 09/07/ :45 NZ Mfg Activity SA QoQ 2Q % -2.60% -2.00% 09/07/ :30 AU AiG Perf of Construction Index Aug /07/ :50 JN Official Reserve Assets Aug $1264.8b -- 09/07/ :30 AU GDP SA QoQ 2Q 0.60% % -- 09/07/ :30 AU GDP YoY 2Q 3.30% % -- 09/07/ :00 MA Exports YoY Jul 1.90% % -- 09/07/ :00 MA Imports YoY Jul -1.50% % -- 09/07/ :00 MA Trade Balance MYR Jul 4.25b b -- 09/07/ :00 ES CPI MoM Aug % -- 09/07/ :00 ES CPI YoY Aug % -- 09/07/ :00 JN Leading Index CI Jul P /07/ :00 JN Coincident Index Jul P /07/ :00 GE Industrial Production SA MoM Jul 0.10% % -- 09/07/ :00 GE Industrial Production WDA YoY Jul 0.20% % -- 09/07/ :00 FI Trade Balance Jul P m -- 09/07/ :00 SA Gross Reserves Aug $46.00b -- $46.16b -- 09/07/ :00 SA Net Reserves Aug $40.93b -- $40.90b -- 09/07/ :30 AU Foreign Reserves Aug A$66.0b -- 09/07/ :45 FR Trade Balance Jul -3600m m -- 09/07/ :45 FR Current Account Balance Jul b -- 09/07/ :00 SZ Foreign Currency Reserves Aug 621.0b b -- 09/07/ :00 MA BNM Overnight Policy Rate 7-Sep 3.00% % -- 09/07/ :00 LN International Reserves Aug m -- 09/07/ :00 AS Wholesale Price Index MoM Aug % -- 09/07/ :00 AS Wholesale Price Index YoY Aug % -- 09/07/ :30 SW Budget Balance Aug b -- 09/07/ :30 UK Halifax House Prices MoM Aug -0.10% % -- 09/07/ :30 UK Halifax House Price 3Mths/Year Aug 7.00% % -- 09/07/ :30 SW Riksbank Interest Rate 7-Sep -0.50% % -- 09/07/ :00 NO Industrial Production MoM Jul % -- 09/07/ :00 NO Industrial Production WDA YoY Jul % -- 09/07/ :00 NO Ind Prod Manufacturing MoM Jul 1.00% % -- 09/07/ :00 NO Ind Prod Manufacturing WDA YoY Jul % -- 09/07/ :00 CZ International Reserves Aug $75.7b -- 09/07/ :00 TA Trade Balance Aug $4.13b -- $3.61b -- 09/07/ :00 TA Imports YoY Aug -4.30% % -- 09/07/ :00 TA Exports YoY Aug 0.30% % -- 09/07/ :00 NO Current Account Balance 2Q b -- 09/07/ :00 SI Automobile COE Open Bid Cat A 7-Sep /07/ :00 SI Automobile COE Open Bid Cat B 7-Sep /07/ :00 SI Automobile COE Open Bid Cat E 7-Sep /07/ :30 UK Industrial Production MoM Jul -0.20% % -- 09/07/ :30 UK Industrial Production YoY Jul 1.90% % -- 09/07/ :30 UK Manufacturing Production MoM Jul -0.30% % -- 09/07/ :30 UK Manufacturing Production YoY Jul 1.70% % -- 09/07/ :00 ES Official Reserve Assets Aug m -- 09/07/ :00 HU Budget Balance YTD Aug b -- 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 Group % Goh Ban Huat % Hiap Teck % Jaks Resources % Java % Kim Hin Ind % Kinsteel % Lafarge M Cement % Lion Corp % Lion Industries % Malaysia Smelting % Masteel % Melewar Ind % MTD ACPI % Pantech % Perwaja % Press Metal % Southern Steel % Tasek % Tong Herr % 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 Bhd % 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 % 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 Group 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 Bhd 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a % SLP Resources % Wellcall % Media Media Chinese % Star Publication % Utusan Melayu % Oil & Gas Alam Maritim % Daya Materials % Dayang Ent % Deleum % Dialog group % ESSO Malaysia % KNM Group % 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 Group % 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 % 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 % Am Corp Prop % Symphony Life Bh % Crescendo Corp % 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 Group % 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a % Selangor Prop % Selangor Dredging % SP Setia % Sunway Bhd % 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 Bhd % Unisem % VS Industry % Telcos Axiata Group % 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 bhd % Boustead Heavy % 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 Bhd may from time to time have a position in or either the securities mentioned herein. Members of the BIMB Group 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 Bhd 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 Berhad Level 32, Menara Multi Purpose, Capital Square, No. 8 Jalan Munshi Abdullah, Kuala Lumpur Tel: Fax: Azharuddin Nordin Head of Research 12