Market Insight. Wednesday, 10 August, 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 Market Insight Wednesday, 10 August, /03/2013(031743) Major Highlights Petronas Gas posts lower Q2 pre-tax profit Petronas Chemicals Q2 earnings down 17% to RM462m BHIC Q2 profit almost triples Taliworks earnings surge 703% on disposal gain PetGas appoints two new directors Ajiya signs MoU with IMAG Bursa Malaysia Bursa Malaysia Close Change +/- Change % FBMKLCI 1, FBMEMAS 11, FBM100 11, FBMEMAS Shariah 12, FBM Hijrah Shariah 13, Volume (mn) 2, 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 22, SHCOMP 3, KOSPI 2, TWSE 9, STI Closed JCI 5, SET 1, PSEi 8, 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 Tax breaks, incentives for shipbuilding, repair companies US productivity falls for third consecutive quarter Rising German imports narrow trade surplus at end of weak Q2 Disappointing China July imports suggests cooling domestic demand Indonesian palm reserves drop as biodiesel mandate boosts demand 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 Aug-16 Sep-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 3.54% KLIBOR 12-mth 3.62% 5-yr MGS 3.26% 10-yr MGS 3.64% Active Stock Close Change+/- (+/- %) Malaysia Building Society Th Heavy Engineering Xidelang Holdings PDZ Hiap Teck Venture Daily Participation Participation (%) Bought (RMm) Sold (RMm) Net (RMm) Local Inst , , Local Retail Foreign Total , , Top Gainers Close Change+/- (+/- %) Panasonic Manufacturing Fraser & Neave Holdings Umw Holdings Heineken Malaysia Petronas Gas Top Losers Close Change+/- (+/- %) British American Tobacco PPB Group Harrisons Holdings Kuala Lumpur Kepong Pie Industrial

3 LOCAL CORPORATE NEWS Petronas Gas posts lower Q2 pre-tax profit PetGas recorded a lower pre-tax profit of RM497.76m in the 2QFY16, compared with RM527.10m in the same period last year. Its revenue, however, rose to RM1.12bn from RM1.08bn previously. The higher revenue was driven by higher utilities revenue, in line with higher offtake by customers and upward fuel gas price revision effective Jan 1, 2016, as well as, higher performance based structure income and regasification revenue. Given the strong and stable income streams from existing gas processing agreement, gas transportation agreements and regasification service agreement signed with Petronas, the gas infrastructure and utilities company expects its performance to remain steady in 2016 amid the challenging economic environment. (Source: Bernama) Petronas Chemicals Q2 earnings down 17% to RM462m PetChem reported lower earnings in the 2QFY16 mainly due to assets write-off amounting to RM241m due to the cancellation of an elastomers project. Earnings fell 17% to RM462m from RM557m a year ago. It declared an interim dividend of 7 sen a share. PBT for the quarter, however, was lower by RM105m or 16% at RM533m mainly due to assets write-off amounting to RM241m (US$59m) in relation to the cancellation of elastomers project. Excluding the write-off, profit after tax would have been higher by RM136m or 21% at RM774m. Its revenue declined 3.1% to RM3.20bn from RM3.30bn a year ago as lower average product prices offset the impact of higher sales volume and stronger USD. (Source: StarBiz) BHIC Q2 profit almost triples Boustead Heavy Industries (BHIC) 2Q net profit has grown by almost 3 times to RM25.3m from RM9.16m a year ago. The company s revenue for the quarter was lower at RM69.75m from RM72.92m a year ago due mainly to conditional approved variation orders for the oil and gas Belum Topside project in the current quarter. Its EPS grew to sen per share from 3.69 sen per share in the same quarter a year ago, while net assets grew to RM1.11 from RM1.09 per share. Its operating costs were lower in the current quarter due mainly to a revision in the project cost under defence-related maintenance, repair and overhaul. (Source: StarBiz) Taliworks earnings surge 703% on disposal gain Taliworks Q2 earnings surged to RM76.19m from RM9.49m a year earlier, boosted by a one-off gain from the sale of its entire waste management business in China. The disposal of its China interests for US$54.6m (RM219.88m) in May part of a new strategy focusing on mature cash-generating businesses -- translated to a net gain of RM65.79m. This was slightly higher than the RM62.9m estimated earlier in its circular to shareholders. For the quarter ended June 30, revenue grew 4.8% YoY to RM76.83m. Ebitda from continuing operations grew 40.3% yoy to RM33,1m. (Source: StarBiz) PetGas appoints two new directors PetGas has appointed 2 new directors - Wan Shamilah Wan Muhammad Saidi and Emeliana Dallan Rice Oxley - effective Sept 1. At the same time, 2 PetGas directors are stepping down. Datuk Rosli Boni, 60, will retire on Sept 1 while Pramod Kumar Karunakaran, 56, has resigned, having been transferred to Project Rapid within the group. Wan Shamilah, 45, had been Petronas head of corporate strategic planning since December She joined the national oil corporation in October 1993 as a Petronas Carigali SB finance executive. From 1995 to 1998, she worked for Morison Stoneham, an accounting firm in England, but rejoined Petronas in 1998 as a manager in group finance and thereafter assumed various positions. (Source: StarBiz) Ajiya signs MoU with IMAG Ajiya has signed a MoU with IMAG Development & Construction SB (IMAG) to collaborate, secure and implement a project awarded by Prima Corp Malaysia. On July 19, Prima had awarded a letter of intent to Polybuilding Construction SB, to construct 746 units of PRIMA Homes on acres of leasehold land in Sarawak. Polybuilding intends to assign this project to IMAG, and IMAG is interested to use Ajiya s Green Integrated Building Solutions for the project. However, it noted that the MoU will only binding in the event of IMAG successfully securing the project. (Source: StarBiz) 3

4 LOCAL AND GLOBAL ECONOMIC NEWS Tax breaks, incentives for shipbuilding, repair companies Malaysia government has unveiled tax breaks and incentives for shipbuilding and ship repairing industry as it targets the sector to generate RM6.35bn in gross national income and provide 55,000 jobs by New companies will either receive pioneer status with 70% of income tax exemption on statutory income for 5 years or Investment Tax Allowance of 60% on the qualifying capital expenditure incurred within 5 years from the date the first qualifying capital expenditure is incurred. (Source: StarBiz) US productivity falls for third consecutive quarter US nonfarm productivity unexpectedly fell in the 2Q, pointing to sustained weakness that could raise concerns about corporate profits and companies' ability to maintain their recent robust pace of hiring. The productivity which measures hourly output per worker, dropped at a 0.5% annual rate in the April-June period. It was the 3 rd consecutive quarterly decline, the longest such stretch since The reason the economy has still been able to expand is because of labor input. Firms are hiring people at a reasonably healthy rate. (Source: The Edge) Rising German imports narrow trade surplus at end of weak Q2 A rise in German imports outstripped a modest gain in exports in June, data showed on Tuesday, narrowing the trade surplus as Europe's largest economy ended the second quarter struggling to maintain its strong momentum from the start of the year. Soft industry orders and uncertainty generated by Britain's vote in June to leave the EU are clouding the business outlook, meaning foreign trade, once Germany's growth engine, is unlikely to inject fresh dynamism into the economy. Some German companies are holding off making investments in Britain until they know more about the post- Brexit relationship the country will forge with the rest of Europe. (Source: Reuters) Disappointing China July imports suggests cooling domestic demand China s exports and imports fell more than expected in July in a rocky start to the 3Q, pointing to further weakness in global demand in the aftermath of Britain s decision to leave the EU. Imports fell 12.5% from a year earlier, the biggest decline since February and suggesting China s domestic demand may be faltering despite a flurry of measures to stimulate economic growth. Government efforts to cut overcapacity could produce an even bigger hit to demand in the next few quarters. (Source: Reuters) Indonesian palm reserves drop as biodiesel mandate boosts demand Palm oil stockpiles in Indonesia fell for at least a 6 th straight month in June as the world s largest producer used more of the vegetable oil as a biofuel. Inventories declined 8.2% to 1.8m metric tons from 1.96m tons in May, according to data released by the Indonesian Palm Oil Association on Tuesday. Exports of palm and kernel oils rose 1% to 1.78m tons, while domestic consumption climbed 6.3% to 955,000 tons. Falling stockpiles in Indonesia may help sustain a rally in prices of the vegetable oil, used in everything from chocolate to cosmetics and biofuel. (Source: Bloomberg) 4

5 ECONOMIC CALENDAR Date Time Country Event Survey Actual Prior Revised 08/10/ :00 UR Unemployment Rate Jun % 7.90% -- 08/10/ :10 MX ANTAD Same-Store Sales YoY Jul 10.30% 10.00% 5.30% -- 08/10/ :07 EL International Reserves Jul m m -- 08/10/ :00 NZ REINZ House Sales YoY Jul % 6.00% -- 08/10/ :00 SK Unemployment rate SA Jul 3.60% 3.60% 3.60% -- 08/10/ :50 JN Housing Loans YoY 2Q % -- 08/10/ :50 JN Machine Orders MoM Jun 3.20% % -- 08/10/ :50 JN Machine Orders YoY Jun -4.50% % -- 08/10/ :50 JN PPI MoM Jul -0.10% % -- 08/10/ :50 JN PPI YoY Jul -4.00% % -- 08/10/ :30 AU Westpac Consumer Conf Index Aug /10/ :30 AU Westpac Consumer Conf SA MoM Aug % -- 08/10/ :00 PH Exports YoY Jun % % -- 08/10/ :00 PH Exports Jun $4711.0m $ m 08/10/ :30 AU Home Loans MoM Jun 2.30% % -- 08/10/ :30 AU Investment Lending Jun % -- 08/10/ :30 AU Owner-Occupier Loan Value MoM Jun % -- 08/10/ :00 JN Tokyo Avg Office Vacancies Jul /10/ :00 SK Money Supply L SA MoM Jun % -- 08/10/ :00 SK Money Supply M2 SA MoM Jun % -- 08/10/ :00 SK Bank Lending To Household Total Jul KR667.5t -- 08/10/ :30 JN Tertiary Industry Index MoM Jun 0.30% % -- 08/10/ :00 RO Industrial Sales MoM Jun % -- 08/10/ :00 RO Industrial Sales YoY Jun % -- 08/10/ :00 RO CPI MoM Jul -0.40% % -- 08/10/ :00 RO CPI YoY Jul -0.70% % -- 08/10/ :00 SZ UBS Real Estate Bubble Index 2Q /10/ :00 FI Industrial Production MoM Jun % -- 08/10/ :00 FI Industrial Production NSA YoY Jun % -- 08/10/ :45 FR Industrial Production MoM Jun 0.10% % -- 08/10/ :45 FR Industrial Production YoY Jun -0.40% % -- 08/10/ :45 FR Manufacturing Production MoM Jun 0.20% % -- 08/10/ :45 FR Manufacturing Production YoY Jun 0.10% % -- 08/10/ :00 SO Industrial Production YoY Jun % -- 08/10/ :00 SO Construction Constant YoY Jun % -- 08/10/ :00 DE CPI MoM Jul -0.10% % -- 08/10/ :00 DE CPI YoY Jul 0.30% % -- 08/10/ :00 DE CPI EU Harmonized MoM Jul % -- 08/10/ :00 DE CPI EU Harmonized YoY Jul % -- 08/10/ :30 SW Industrial Production MoM Jun 0.60% % -- 08/10/ :30 SW Industrial Production NSA YoY Jun 3.70% % -- 08/10/ :30 SW Industrial Orders MoM Jun % -- 08/10/ :30 SW Industrial Orders NSA YoY Jun % -- 08/10/ :30 SW Service Production MoM SA Jun % -- 08/10/ :30 SW Service Production YoY WDA Jun % -- 08/10/ :00 NO CPI MoM Jul -0.10% % -- 08/10/ :00 NO CPI YoY Jul 3.80% % -- 08/10/ :00 NO CPI Underlying MoM Jul 0.00% % -- 08/10/ :00 NO CPI Underlying YoY Jul 3.10% % -- 08/10/ :00 NO PPI including Oil MoM Jul % -- 08/10/ :00 NO PPI including Oil YoY Jul % -- 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 % 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 % 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 % SLP Resources n.a. n.a. n.a. n.a. n.a. n.a. n.a % Wellcall % Media Media Chinese % Star Publication % Utusan Melayu n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 % Hap Seng Plant n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 % Selangor Prop n.a. n.a. n.a. n.a. n.a. n.a. n.a % 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 % 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 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 % 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