Market Insight. Friday, 28 October, 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 Sep-16 Oct-16 Market Insight Friday, 28 October, /03/2013(031743) Major Highlights TNB Q4 earnings doubles, dividend 22c MMHE incurs net loss of RM4.53m in Q3 MAHB's Q3 earnings down 84% to RM10.7m Gadang sees 1Q17 net profit tumble 20% Prasarana to award LRT 3 tenders by year-end UMW Oil & Gas secures drilling contract from Hess Maxis Broadband issues RM500m Sukuk Tanah Makmur proposes to cancel 30 sen from share par value 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 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 Najib aims to take China ties to 'new highs' on visit US business spending tepid; labour market firming UK economy defies fears of quick Brexit hit, grows solidly in Q3 UK economy proves resilient to Brexit on services Thai finmin says 2016 GDP growth will be above 3% 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 Oct-16 Nov-16 High 1, , Low 1, , Last 1, , Volume 18, , 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 3.52% KLIBOR 12-mth 3.62% 5-yr MGS 3.28% 10-yr MGS 3.58% Active Stock Close Change+/- (+/- %) Sumatec Resources Nexgram Hibiscus Petroleum Airasia X RGB International Daily Participation Participation (%) Bought (RMm) Sold (RMm) Net (RMm) Local Inst , , Local Retail , Foreign , , Total , , Top Gainers Close Change+/- (+/- %) Hong Leong Industries Melati Ehsan British American Tobacco Triplc Sasbadi Top Losers Close Change+/- (+/- %) F&N KESM Industries Malayan Banking United U-Li Corp Ajinomoto

3 LOCAL CORPORATE NEWS TNB Q4 earnings doubles, dividend 22c TNB s earnings more than doubled in the 4QFY2016 to RM1.76bn and it declared a final dividend of 22 sen a share, underpinned by the stronger ringgit versus the US dollar and lower LNG price. The earnings rose 114% from RM820.90m in the previous corresponding period. EPS doubled to sen from sen. However, revenue fell 4.3% to RM11.23bn from RM11.74bn a year ago. This was despite the increase in sales of electricity of RM236.3m or 2.1%. (Source: StarBiz) MMHE incurs net loss of RM4.53m in Q3 MMHE posted a net loss of RM4.53 in the 3QFY2016 compared with a net profit of RM16.96m in the same period a year ago. The group s registered a higher loss before taxation of RM2.2m against the preceding quarter s loss before taxation of RM800,000. The variance was mainly due to recognition of approved variation orders for Malikai project in preceding quarter, offsetted partially by the favourable impact from the foreign currency fluctuation. (Source: Starbiz) MAHB's Q3 earnings down 84% to RM10.7m MAHB net profit for the 3QFY2016 fell 84% to RM10.7m due to a decline in profits from its Turkey operations. The stark difference in the net profit was mainly due to the decrease in PBT by 82.9% or RM31.6m that was registered by Istanbul Sabiha Gokcen International Airport (ISG) and LGM Havalimani Isletmeleri Ticaret ve Turizm A.S. LGM compared to 3Q The fall in PBT is primarily due to the amortisation of fair value for the concession rights owing to the fair valuation exercise on the acquisition of ISG and LGM as compared to the previous corresponding quarter. (Source: StarBiz) Gadang sees 1Q17 net profit tumble 20% Gadang saw its net profit tumble some 20% to RM16.62m or 6.46 sen per share for the 1QFY2017 from RM20.86m or 9.61 sen per share. The construction and property player s revenue for the quarter fell to RM104.6m from RM149.38m due to lower revenue inflow from its construction division. This was mainly due to the completion of some projects. The outstanding order book stands at some RM603.7m. It was reported in July that the company's order book stood at RM615m. (Source: StarbBiz) Prasarana to award LRT 3 tenders by year-end Prasarana is expected to begin awarding tenders for the RM9bn LRT 3 project by year-end. Currently the company was in the process of reviewing proposals from bidders. They are also in the midst of land acquisition. The construction of the LRT3 project, which will connect 2m people between Bandar Utama and Klang, is scheduled to begin early next year and to be completed by Aug 31, (Source: Bernama) UMW Oil & Gas secures drilling contract from Hess UMW Oil & Gas will provide a high pressure high temperature jack-up drilling rig and services to Hess Exploration and Production Malaysia BV for its North Malay basin operation. Its indirect unit UMW Offshore Drilling SB would assign UMW Naga 8 for the contract, which has a duration of 18 months with option to extend for 12 more months. UMW Naga 8 was a premium independent-leg cantilever jack-up rig with a drilling depth capability of 30,000 ft and a rated operating water depth of 400 ft. (Source: StarbBiz) Maxis Broadband issues RM500m Sukuk Maxis Bhd's subsidiary Maxis Broadband SB had on Thursday issued the 2 nd series of the Sukuk Murabahah amounting to RM500m in nominal value. The issuance of the Sukuk was in relation to the RM10bn unrated Sukuk Murabahah Programme established by Maxis Broadband. The maturity date for the 2 nd series of the Sukuk is on Oct 27, (Source: StarBiz) Tanah Makmur proposes to cancel 30 sen from share par value Tanah Makmur Bhd will reduce the par value of its shares by 30 sen instead of the earlier-proposed 25 sen to facilitate the revised selective capital reduction s (SCR) revised consideration price of RM1.90.The company would then undertake a proposed bonus issue of new Tanah Makmur shares of 20 sen each to all shareholders other than Pahang Crown Prince Tengku Abdullah Sultan Ahmad Shah and certain selected persons acting in concert (PACs) with him, CIMB Investment Bank Bhd told Bursa Malaysia on behalf of the board.tanah Makmur board received a letter from Tengku Abdullah clarifying the terms and conditions on Wednesday. (Source: StarBiz) 3

4 LOCAL AND GLOBAL ECONOMIC NEWS Najib aims to take China ties to 'new highs' on visit Najib Razak heads to China next week to build closer ties and seek investment, which may further dent US aims in Southeast Asia after a push by President Rodrigo Duterte of the Philippines to bolster China ties. Najib is travelling to China with dozens of government leaders and business people. Malaysia was committed to strengthening friendship with China and pushing ties to "new highs". They will be signing many new agreements and understandings that will elevate the relationship between their 2 nations to even greater heights. (Source: Reuters) US business spending tepid; labour market firming New orders for US manufactured capital goods unexpectedly fell in September amid weak demand for computers and electronic products, which could temper expectations for an acceleration in business spending in the 4Q. Other data on showed a drop in the number of Americans applying for unemployment benefits last week, pointing to sustained labour market strength and firming economic growth. The non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 1.2% after 3 straight months of strong gains. (Source: Reuters) UK economy defies fears of quick Brexit hit, grows solidly in Q3 Britain s economy barely slowed in the 3Q despite the Brexit vote shock, further diminishing the chance of a fresh interest rate cut by the BoE next week. GDP expanded by 0.5% in the July-September period, less rapid than the unusually strong growth of 0.7% seen in the 2Q but comfortably above a median forecast of 0.3%. Compared with the 3Q of last year, growth picked up to 2.3%, the strongest pace in more than a year. (Source:Reuters) UK economy proves resilient to Brexit on services The UK economy grew faster than economists forecast in the 3Q, with services single-handedly ensuring resilience against any Brexit fallout. The 0.5% expansion was better than the 0.3% median forecast of economists in a Bloomberg survey. Services surged 0.8%, offsetting declines in construction and production, its performance helped by box-office receipts for summer movies including Jason Bourne and Star Trek. The report covers the period since the vote in June to leave the EU, as Britain came to terms with a decision that sparked a change of prime minister, a sharp drop in the pound, price spats between companies and the 1 st BoE interest-rate cut in 7 years. (Source: Reuters) Thai finmin says 2016 GDP growth will be above 3% Thailand's economy will grow more than 3% this year, with fundamentals still intact and consumption back to normal, amid concerns that domestic activity could be hit by mourning for King Bhumibol Adulyadej. At first, they were worried that spending could drop. But it had fallen only 2-3 days and is now back to normal. This makes them confident that everything is still moving forward. The government is ready to introduce additional stimulus measures if needed. The finance ministry has forecast 2016 economic growth at 3.3%. Last year's growth was 2.8%. (Source: StarBiz) 4

5 ECONOMIC CALENDAR Date Time Country Event Survey Actual Prior Revised 10/28/ :30 BZ Central Govt Budget Balance Sep -23.7b -25.3b -20.3b -- 10/28/ :00 SK Business Survey Non-Manufacturing Nov /28/ :00 SK Business Survey Manufacturing Nov /28/ :01 UK GfK Consumer Confidence Oct /28/ :30 JN Jobless Rate Sep 3.10% % -- 10/28/ :30 JN Job-To-Applicant Ratio Sep /28/ :30 JN Overall Household Spending YoY Sep -2.70% % -- 10/28/ :30 JN Natl CPI YoY Sep -0.50% % -- 10/28/ :30 JN Natl CPI Ex Fresh Food YoY Sep -0.50% % -- 10/28/ :30 JN Natl CPI Ex Food, Energy YoY Sep 0.10% % -- 10/28/ :30 JN Tokyo CPI YoY Oct -0.40% % -- 10/28/ :30 JN Tokyo CPI Ex-Fresh Food YoY Oct -0.50% % -- 10/28/ :30 JN Tokyo CPI Ex Food, Energy YoY Oct -0.10% % -- 10/28/ :00 AU HIA New Home Sales MoM Sep % -- 10/28/ :30 AU PPI QoQ 3Q % -- 10/28/ :30 AU PPI YoY 3Q % -- 10/28/ :30 TA GDP YoY 3Q P 1.80% % -- 10/28/ :30 NE Producer Confidence Index Oct /28/ :00 JN Natl CPI Ex Fresh Food, Energy YoY Sep 0.30% % -- 10/28/ :30 FR GDP QoQ 3Q A 0.30% % -- 10/28/ :30 FR GDP YoY 3Q A 1.20% % -- 10/28/ :00 NO Retail Sales W/Auto Fuel MoM Sep 0.30% % -- 10/28/ :00 FI House Price Index MoM Sep % -- 10/28/ :00 FI House Price Index YoY Sep % -- 10/28/ :00 NO Industrial Confidence 3Q /28/ :45 FR PPI MoM Sep % -- 10/28/ :45 FR PPI YoY Sep % -- 10/28/ :45 FR CPI EU Harmonized MoM Oct P 0.20% % -- 10/28/ :45 FR CPI EU Harmonized YoY Oct P 0.60% % -- 10/28/ :45 FR CPI MoM Oct P 0.20% % -- 10/28/ :45 FR CPI YoY Oct P 0.50% % -- 10/28/ :45 FR Consumer Spending MoM Sep 0.30% % -- 10/28/ :45 FR Consumer Spending YoY Sep 1.10% % -- 10/28/ :00 SO PPI MoM Sep % -- 10/28/ :00 SO PPI YoY Sep % -- 10/28/ :00 SO Consumer Confidence Oct /28/ :00 SO Industrial Confidence Oct /28/ :00 HU PPI MoM Sep % -- 10/28/ :00 HU PPI YoY Sep % -- 10/28/ :00 HU Trade Balance Aug F m -- 10/28/ :00 GE CPI Saxony MoM Oct % -- 10/28/ :00 GE CPI Saxony YoY Oct % -- 10/28/ :00 SZ KOF Leading Indicator Oct /28/ :00 AS GDP SA QoQ 3Q % 0.10% 10/28/ :00 AS GDP NSA YoY 3Q % -- 10/28/ :00 AS PPI MoM Sep % -- 10/28/ :00 AS PPI YoY Sep % -- 10/28/ :00 SP CPI EU Harmonised MoM Oct P 0.60% % -- 10/28/ :00 SP CPI EU Harmonised YoY Oct P 0.30% % -- 10/28/ :00 SP CPI MoM Oct P 0.80% % -- 10/28/ :00 SP CPI YoY Oct P 0.30% % -- 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a % Hiap Teck % Jaks Resources % Java n.a. n.a. n.a. n.a. n.a. n.a. n.a % Kim Hin Ind % Kinsteel % Lafarge M Cement % Lion Corp 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 % Conglomerates Cahya Mata Sarawak % Lion Diversified % Hap Seng Cons % MMC % Sime Darby % YTL Corp % Construction AZRB % Ekovest % Fajar Baru n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 % 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 % MWE Hold n.a. n.a. n.a. n.a. n.a. n.a. n.a % Muda Hold % 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 % 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 % 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 % 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 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 % 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 % 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 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 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