Today s Highlights. Quick bites. Outside Malaysia. Initiate Coverage Amcorp Properties (BUY, TP: RM1.53) - Hit by weak plantation divisions

Transcription

1 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Today s Highlights Initiate Coverage Amcorp Properties (BUY, TP: RM1.53) - Hit by weak plantation divisions Results Note HAI-O (HOLD, maintain) -No surprises Economy CPI -Headline inflation rate eased slightly to 3.1% yoy in August Economy ASEAN Outlook - Weekly Wrap -ADB lowered its Asean GDP growth to 4.4% for 2015 Quick bites RHB Capital: Renounceable Rights Issue relevant dates and upcoming ex-date Outside Malaysia US stocks decline as investors crave more guidance from Fed Yellen says she still expects rate increase this year Jobless claims in US increased less than forecast last week ECB s Vasiliauskas says wait for December to discuss QE boost German business confidence rises in sign of strong recovery Taiwan cuts rate for first time since 2009 as exports falter Philippines holds interest rates with growth seen quickening Oil rises as dollar drop bolsters commodity appeal as investment Other Markets Key Indicators COMMODITIES CURRENCIES Latest chg (%) Latest Ytd chg (%) CPO (RM/Tonne) RM/US$ 4.37 (20.0) Spot (Oct) 2, RM per 100 Yen 3.64 (19.7) 3-mth futures (Jan) 2, RM/S$ 3.09 (14.3) Yen/US$ (0.4) Crude oil (US$/brl) Eur/US$ Spot 45.8 (1.8) RM/AUD 3.04 (5.8) 1-mth futures 44.5 (4.1) MALAYSIA INTEREST RATES Latest Ytd chg (bps) Gold (US$/oz) OPR (%) Spot mth Klibor (%) 3.74 (12.0) 1-mth futures Maybank BR (%) *as at 31 Dec 2014 Bursa Malaysia KLCI 52-wk range Mkt Cap (RMbn) 1, Vol (m shrs) 1, Value (RMm) 2, KLCI futures (spot) 1, KLCI futures (1-mth) 1, KLCI Index (12-mth) Top 5 Gainers Price (RM) chg (RM) % chg NESTLE TOPGLOV TECNIC TRIPLC LPI Top 5 Losers Price (RM) chg (RM) % chg PBBANK (0.44) (2.43) GEN PLT 9.88 (0.26) (2.56) GENT 7.26 (0.25) (3.33) KL KEPONG (0.24) (1.11) HLFG (0.24) (1.69) Top 5 Value Traded Price (RM) chg (RM) Val (RMm) PBBANK (0.44) MAYBANK 8.41 (0.11) TENAGA (0.14) UEMS AXIATA 5.90 (0.16) Key Equity Indices Close % chg Ytd chg (%) KLCI (1.4) (8.4) Dow Jones (0.3) (9.1) Nasdaq (0.1) (0.0) FTSE (9.2) East. Europe (3.7) Mexico (0.4) (1.3) Shenzen B (0.8) 24.2 Shanghai B (2.2) (2.8) Hong Kong (2.3) (10.6) Korea (1.9) 1.6 Singapore (0.8) (15.4) Indonesia (2.3) (18.8) Philippines (1.8) (4.3) Thailand (0.3) (8.4) Vietnam (0.1) 4.5 India (5.9) Taiwan (2.1) (12.7) Page 1 of 7

2 Quick Bites Renounceable Rights Issue Relevant Dates and upcoming ex-date RHB Capital (RHBCap) announced that the ex-date of its 1-for m Renounceable Rights Issue (at RM4.82/rights share) has been set on 19 Nov15 while the entitlement date on 23 Nov15. The trading of the rights shares will commence on 24 Nov15 and cease trading on 1 Dec15. The allotment of the excess rights securities will be announced on 11 Dec15. Meanwhile, the rights shares will be listed on 21 Dec15. (Source: Bursa Malaysia) Comments: Though the RHBCap Rights Issue price appear to be an undervalued entry into RHBCap at a 20% discount, we note that banking group continues to face headwinds arising from an expected NIM deterioration (due to increasing funding cost), weak loan growth as well as potentially rising credit costs. We still keep our SELL rating on the RHBCap, with our PT at RM6.00 (at 0.67x P/BV on a 2016E ROE of 8.3%). Under the reorganized RHB Bank, our PT is RM5.54 (based on 1x P/BV on 2016E BVPS). Page 2 of 7

3 Outside Malaysia US stocks decline as investors crave more guidance from Fed US stocks retreated as investors clamor for further clarity on the Federal Reserve (Fed) s stimulus policy. The S&P 500 fell 0.3% to 1, The Dow Jones Industrial Average sank points (0.5%) to 16, Yellen says she still expects rate increase this year Fed Chairwoman Janet Yellen said the US central bank is on track to raise interest rates this year, even as she acknowledged that economic surprises could lead them to change that plan. Most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter, she said. Jobless claims in US increased less than forecast last week Fewer Americans than forecast filed applications for unemployment benefits last week, a sign that a steady labor market will bolster US growth. Jobless claims rose by 3,000 to 267,000 in the week ended Sept. 19, a report from the Labor Department showed. The median forecast surveyed by Bloomberg News called for 272,000 claims. ECB s Vasiliauskas says wait for December to discuss QE boost European Central Bank (ECB) Governing Council member Vitas Vasiliauskas said policy makers should watch for new macroeconomic forecasts at the end of this year before even discussing whether to expand stimulus. While his comments echo those of Mario Draghi and colleagues on the Governing Council, he goes further in saying any detailed talks before December would be premature. German business confidence rises in sign of strong recovery German business confidence unexpectedly increased in September as companies benefited from strengthening domestic demand in Europe s largest economy, shrugging off risks from slowing growth in emerging markets. The Ifo institute s business climate index climbed to in September from a revised in August. The median estimate was for a decline to 107.9, according to a Bloomberg survey of economists. Taiwan cuts rate for first time since 2009 as exports falter Taiwan lowered its policy rate for the first time since the global financial crisis, sending forwards on the island s currency to a six-year low. The central bank cut the benchmark discount rate by 12.5bps to 1.75%, it said in a statement. Taiwan s expansion rate for 3Q15 will be lower and inflation is subdued, central bank Governor Perng Fai-nan said. Philippines holds interest rates with growth seen quickening The Philippines left its benchmark interest rate unchanged for an eighth straight meeting, as the prospect of faster economic growth next year reduces the need for monetary stimulus. Bangko Sentral ng Pilipinas kept the rate it pays lenders for overnight deposits at 4%, as predicted by all 19 economists surveyed by Bloomberg. Policy makers also held the rate on so-called special deposit accounts unchanged at 2.5%. Oil rises as dollar drop bolsters commodity appeal as investment Oil climbed from the lowest level in more than a week as the dollar dropped, bolstering demand for commodities as an investment. Brent for November settlement advanced US$0.42 to US$48.17 a barrel. Source: Bloomberg (Nur Shazeya; ; shazeya.razzaad@affinhwang.com) Page 3 of 7

4 Market Summary Table 1: Off Market transactions Shares Price (RM) Vol (m) Val (RMm) Type* BJLAND D KINSTEL D YINSON D HWANG D PUC D ECOFIRS D * D-Direct M-Married OM-Odd Married OD-Odd Direct Source: Bloomberg Table 2: Shares Buyback/ Resale Company* Date Units Treasury Transaction IOICORP 23-Sep 1,520,200 5,925,742 Shares Buy Back TROPICANA 23-Sep 47,300 47,300 Shares Buy Back KULIM 23-Sep 31,000 Shares Buy Back * Only FBM100 Component Stocks Source : Bursa Malaysia Table 3: ESOS Company* Date Units Transaction * Only FBM100 Component Stocks Source : Bursa Malaysia Table 4: Entitlements Company Entitlement Ex-Date Lodgement Payment RHBCAP Rights Issue 19-Sep Sep-15 - YTLLAND- Loan Stock LA BARAKAH- LA Source : Bursa Malaysia Int. 12-Oct Oct-15 2-Nov-15 Loan Stock Int. 8-Oct Oct Oct-15 Page 4 of 7

5 Fig 5: Shareholding changes Substantial Shareholder Date Transaction Units Company EPF 18-Sep-15 Disposed 1,101,200 AFG EPF 18-Sep-15 Disposed 89,069 AIRPORT EPF 18-Sep-15 Disposed 6,000,000 AMMB EPF 18-Sep-15 Acquired 38,000,000 ARMADA EPF 17 to 18-Sep-15 Acquired 9,502,900 AXIATA Amanah Raya Trustees 17 to 18-Sep-15 Acquired 2,998,700 AXIATA EPF 17-Sep-15 Disposed 9,864,200 AXIATA EPF 18-Sep-15 Disposed 14,300 BAT EPF 18-Sep-15 Acquired 355,200 BIMB EPF 18-Sep-15 Disposed 223,900 BURSA EPF 18-Sep-15 Disposed 519,800 CMSB EPF 18-Sep-15 Disposed 3,000,000 DIALOG EPF 18-Sep-15 Acquired 5,000,000 DIGI EPF 18-Sep-15 Acquired 2,000,000 ECOWLD EPF 18-Sep-15 Disposed 1,000,000 ECOWLD Kumpulan Wang Persaraan 15-Sep-15 Acquired 81,600 GAMUDA EPF 18-Sep-15 Acquired 2,678,800 GAMUDA Kumpulan Wang Persaraan 14 to 15-Sep-15 Disposed 1,575,200 GAMUDA EPF 15 to 17-Sep-15 Disposed 906,900 HARTA EPF 18-Sep-15 Disposed 237,900 HARTA EPF 18-Sep-15 Others 62,328,400 HARTA EPF 18-Sep-15 Acquired 40,000 HLBANK EPF 18-Sep-15 Acquired 1,595,700 IHH EPF 18-Sep-15 Disposed 3,000,000 IHH EPF 18-Sep-15 Acquired 1,449,100 IJM EPF 18-Sep-15 Acquired 100,000 KLK Kumpulan Wang Persaraan 15-Sep-15 Disposed 500,000 KULIM EPF 18-Sep-15 Acquired 3,000,000 MAXIS EPF 18-Sep-15 Disposed 6,295,800 MAYBANK EPF 18-Sep-15 Disposed 242,400 MEDIA Utilico Emerging Markets Limited 21-Sep-15 Disposed 359,200 MYEG Amsteel Mills Sdn Bhd 18 to 22-Sep-15 Acquired 65,500 PARKSON EPF 18-Sep-15 Disposed 2,425,700 PBBANK EPF 18-Sep-15 Disposed 356,200 PETDAG Kumpulan Wang Persaraan 14 to 15-Sep-15 Acquired 324,200 PETGAS EPF 18-Sep-15 Disposed 600,000 PETGAS Kumpulan Wang Persaraan 14 to 15-Sep-15 Disposed 948,600 PETGAS EPF 18-Sep-15 Disposed 188,100 SIME EPF 18-Sep-15 Disposed 5,125,400 SKPETRO EPF 18-Sep-15 Disposed 1,301,100 SUNREIT Mountex Sdn Bhd 22-Sep-15 Acquired 2,000 TAANN EPF 18-Sep-15 Acquired 569,700 TAKAFUL EPF 18-Sep-15 Acquired 122,000 TIMECOM EPF 18-Sep-15 Disposed 352,300 TIMECOM EPF 18-Sep-15 Acquired 1,667,000 TM EPF 18-Sep-15 Disposed 653,300 TM EPF 18-Sep-15 Acquired 129,000 UOADEV Kumpulan Wang Persaraan 15-Sep-15 Acquired 1,006,600 WCT EPF 18-Sep-15 Disposed 1,440,200 YTL EPF 18-Sep-15 Disposed 1,579,800 YTLPOWR Source: Bursa Malaysia Page 5 of 7

6 Fig 6: Dividend Entitlement Stocks Particulars DPS (sen) Announce Ex-Date Lodge Payment AXIATA Interim Dividend of 8 sen Sep Sep Sep Oct-15 GENM Interim Single-Tier Div of 2.8 sen Aug Sep Sep Oct-15 GENP Interim Div of 2.5 sen Aug Sep Sep Oct-15 OLDTOWN Final Dividend of 3 sen Sep Sep Sep Oct-15 OPENSYS Tax exempt 2nd interim dividend of 0.5 sen Aug Sep Sep Oct-15 TASCO Single Div of 5.00 sen Aug Sep Sep Oct-15 CAELY Single Tier Div of RM0.01 sen Aug Sep-15 1-Oct Oct-15 PJDEV Interim Dividend of 2.5 sen Sep Sep-15 1-Oct Oct-15 TIENWAH Interim Div of 4.00 sen Aug Sep-15 1-Oct Oct-15 ASIAPLY Final Div of 0.5 sen Aug Sep-15 2-Oct Oct-15 ASTRO 2nd Interim Div of 2.75sen Sep Sep-15 2-Oct Oct-15 HUAYANG Single tier div of 8 sen Jul Sep-15 2-Oct Oct-15 LBALUM 1st and Final Dividend of 2 sen Sep Sep-15 2-Oct Oct-15 POHUAT Interim Dividend of 3 sen Sep Sep-15 2-Oct Oct-15 SKPRES Final Div of 1.96 sen Aug Sep-15 2-Oct Oct-15 SUNWAY Special Cash Div of RM Sep Sep-15 2-Oct Oct-15 AJI 1st and Final Div of 20.0 sen Aug-15 1-Oct-15 5-Oct Oct-15 ELSOFT Single Div of 2 sen Aug-15 1-Oct-15 5-Oct Oct-15 DOLMITE-PA Preference Share Div of 3.5sen Aug-15 2-Oct-15 6-Oct-15 4-Nov-15 E&O 1 Treasury share for every 50 existing ordinary Share Div 27-Aug-15 2-Oct-15 6-Oct Oct-15 PANTECH 1st & Single Div of 0.5sen Jul-15 5-Oct-15 7-Oct Oct-15 TNLOGIS Final div of 4.0 sen Aug-15 5-Oct-15 7-Oct Oct-15 YTL Interim Div of 9.5 sen Aug-15 5-Oct-15 7-Oct Oct-15 YTLE Interim Div of 4 sen Aug-15 5-Oct-15 7-Oct Oct-15 YTLPOWR Interim Div of 10 sen Aug-15 5-Oct-15 7-Oct Oct-15 BERJAYA Interim Dividend of 2.25 sen Sep-15 6-Oct-15 8-Oct Oct-15 SUPERMX Interim Div of 2 sen Aug-15 6-Oct-15 8-Oct Oct-15 MAA Interim Div of 3 sen Sep-15 7-Oct-15 9-Oct-15 9-Oct-15 BJTOTO Interim Dividend Sep-15 8-Oct Oct Oct-15 CARING Final Dividend of 2 sen Sep Oct Oct Nov-15 CCMDBIO Interim Div of 4 sen Aug Oct Oct-15 6-Nov-15 SBCCORP 1st and Final Div 0f 1.6 sen Aug Oct Oct-15 3-Nov-15 SUNWAY Interim Dividend of 5 sen Sep Oct Oct Oct-15 ULICORP 2nd Interim Div of 3 sen Aug Oct Oct Nov-15 GTRONIC Single Tier 2nd Interim Div of 5 sen Sep Oct Oct-15 4-Nov-15 GTRONIC Special Div of 5 sen Sep Oct Oct-15 4-Nov-15 SHANG Interim Div of 3 sen Aug Oct Oct Nov-15 CHINWEL Single Interim Div of 3.84 sen Aug Oct Oct Nov-15 CSCENIC 1st Interim Div of 4 sen Aug Oct-15 2-Nov Nov-15 ORIENT Interim Dividend of 6 sen Sep Oct-15 2-Nov Nov-15 BREM Final Div of 1.5 sen Aug Oct-15 3-Nov Nov-15 OKA 1st and Final Div of 3.0 sen Jul-15 4-Nov-15 6-Nov Nov-15 SOLID Final Div of 2.0 sen Aug-15 4-Nov-15 6-Nov-15 3-Dec-15 WEIDA 1st and Final Div of 3.0 sen Jul-15 5-Nov-15 9-Nov Nov-15 HAI-O Final Dividend of 11 sen Sep 11-Nov Nov Nov-15 ASIAFLE Final Single Tier Div of 9 sen Aug Nov Nov Dec-15 GLOMAC Final Dividend of 2.25 sen Sep Nov Nov Dec-15 DAIMAN 1st and Final Div 0f 5 sen Aug-15 7-Dec-15 9-Dec Oct-15 APOLLO Single Tier First and Final Div of 25 sen Aug-15 9-Dec Dec-15 6-Jan-16 PTARAS Final Dividend of 11 sen Sep Dec Dec Jan-16 Source: Bursa Malaysia Page 6 of 7

7 Equity Rating Structure and Definitions BUY Total return is expected to exceed +10% over a 12-month period HOLD Total return is expected to be between -5% and +10% over a 12-month period SELL Total return is expected to be below -5% over a 12-month period NOT RATED Affin Hwang Investment Bank Berhad does not provide research coverage or rating for this company. Report is intended as information only and not as a recommendation The total expected return is defined as the percentage upside/downside to our target price plus the net dividend yield over the next 12 months. OVERWEIGHT Industry, as defined by the analyst s coverage universe, is expected to outperform the KLCI benchmark over the next 12 months NEUTRAL Industry, as defined by the analyst s coverage universe, is expected to perform inline with the KLCI benchmark over the next 12 months UNDERWEIGHT Industry, as defined by the analyst s coverage universe is expected to under-perform the KLCI benchmark over the next 12 months This report is intended for information purposes only and has been prepared by Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) ( the Company ) based on sources believed to be reliable. However, such sources have not been independently verified by the Company, and as such the Company does not give any guarantee, representation or warranty (express or implied) as to the adequacy, accuracy, reliability or completeness of the information and/or opinion provided or rendered in this report. Facts, information, views and/or opinion presented in this report have not been reviewed by, may not reflect information known to, and may present a differing view expressed by other business units within the Company, including investment banking personnel. Reports issued by the Company, are prepared in accordance with the Company s policies for managing conflicts of interest arising as a result of publication and distribution of investment research reports. Under no circumstances shall the Company, its associates and/or any person related to it be liable in any manner whatsoever for any consequences (including but are not limited to any direct, indirect or consequential losses, loss of profit and damages) arising from the use of or reliance on the information and/or opinion provided or rendered in this report. Any opinions or estimates in this report are that of the Company, as of this date and subject to change without prior notice. Under no circumstances shall this report be construed as an offer to sell or a solicitation of an offer to buy any securities. The Company and/or any of its directors and/or employees may have an interest in the securities mentioned therein. The Company may also make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not fit to your financial status, risk and return preferences and hence an independent evaluation is essential. Investors are advised to independently evaluate particular investments and strategies and to seek independent financial, legal and other advice on the information and/or opinion contained in this report before investing or participating in any of the securities or investment strategies or transactions discussed in this report. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. The Company s research, or any portion thereof may not be reprinted, sold or redistributed without the consent of the Company. The Company, is a participant of the Capital Market Development Fund-Bursa Research Scheme, and will receive compensation for the participation. This report is printed and published by: Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) A Participating Organisation of Bursa Malaysia Securities Bhd Chulan Tower Branch, 3rd Floor, Chulan Tower, No 3, Jalan Conlay, Kuala Lumpur. research@affinhwang.com Tel : Fax : Page 7 of 7