PP16795/03/2013(031743) Dec-16

Transcription

1 Friday, 22 December, 2017 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Research Team PP16795/03/2013(031743) Corporate News Muhibbah lands MRT2 job worth RM189m Daya Materials wins chemical supply contract from Petronas Carigali Wah Seong sells plantation unit for US$6m Datasonic launches factory to manufacture new e-passports JKG Land's 3Q back in black with RM2.7m net profit on property development gains IOI Properties unit issues first sukuk tranche totalling RM100m Bursa Malaysia Close Chg +/- Chg % YTD Chg (%) FBMKLCI 1, FBMEMAS 12, FBM100 12, FBMEMAS Shariah 12, FBM Hijrah Shariah 14, Volume (m) 2, Value (MYR m) 2, Economic News BNM: Ringgit strengthened by 10.1% in 2017, USD/RM exchange rate remains stable EPF employee contribution rate to revert to 11% from Jan 2018 US 3Q economic growth trimmed; jobless claims rise UK car output falls in November as domestic demand slumps BOJ keeps policy steady, remains upbeat on economy Indonesia Nov palm oil exports likely fell on weak global demand KLCI Performance KLCI Year-End Target: 1,790 points Regional Indices Commodities (Last Close) Close Chg +/- Chg % YTD Chg (%) Close Chg +/- Chg % DJIA 24, 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 29, Soybean Oil SHCOMP 3, KOSPI 2, Forex TWSE 10, (per USD) BIMB (YE Forecast) Close Chg +/- Chg % STI 3, MYR JCI 6, JPY SET 1, EUR PSEi 8, SGD

2 Major Rates Daily Participation Market Insight % Participation Bought Sold Net KLIBOR 3-mth 3.43 (%) (MYR m) (MYR m) (MYR m) KLIBOR 6-mth 3.56 Local Insti , , KLIBOR 12-mth 3.64 Local Retail yr MGS 3.59 Foreign yr MGS 3.95 Total , , Performance of BIMB Stock Coverage Top Gainers Source: Bank Negara Malaysia Top Losers Source: The Sun, BIMB Securities Close Chg +/- Chg % Close Chg +/- Chg % SP Setia Hartalega My EG KPJ Ikhmas Jaya Supermax Petronas Gas IJM DNex Westport

3 CORPORATE NEWS Muhibbah lands MRT2 job worth RM189m Muhibbah Engineering has been awarded a RM189m work package by Mass Rapid Transit Corp SB for the construction of the MRT Sungai Buloh-Serdang-Putrajaya line, also known as MRT2. The group will be responsible for the design, supply, installation, testing and commissioning of noise barriers and enclosures for the package. The contract is scheduled to commence immediately and is expected to be substantially completed by end The contract is expected to contribute positively to its earnings and net assets for the current and future financial years. (Source: The Edge) Daya Materials wins chemical supply contract from Petronas Carigali Daya Materials has bagged a contract from Petronas Carigali SB for the provision of integrated production chemicals supply and services worth an estimated RM67m. Daya Materials said its 67%-owned subsidiary Daya Secadyme SB was awarded the contract for SK Oil, Miri Waters with a tenure of 5 years effective Dec 11. The contract comes with a 1 year extension option. Details of the works involved will be addressed in a work order from time to time when supply of integrated production chemicals and services are required. The contract has raised the group's outstanding orderbook to RM608m. (Source: The Edge) Wah Seong sells plantation unit for US$6m Wah Seong intends to sell its plantation unit WS Agro Industries Pte Ltd to Agro Panorama SB for US$6m (RM24.46m). WS Agro s disposal is meant to streamline, realign and rationalise its business activities, while realising resources that are tied to non-core operations. The aggregate consideration is based on the approximate carrying value of WS Agro s investments in its plantation business. The deal will not have any material financial impact on the gearing, earnings and net assets of the group for the FY17. Wah Seong has struggled to flourish in the plantation business ever since its 2012 venture. Its plantation arm had only stayed in the red since, it contributed zero revenue and RM4.1m in losses before tax for its 9MFY17. (Source: The Edge) Datasonic launches factory to manufacture new e-passports Datasonic has launched its new factory in Petaling Jaya to manufacture the new generation of the electronic international Malaysian passport (e-passport). The new factory equipped with all the necessary machinery and relevant technology capabilities. Datasonic has started manufacturing the new e-passports in October this year and has made almost 650,000 pieces of e-passport, which was officially rolled out on Nov 15 onwards. With the support from the Immigration Department of Malaysia, this marks the beginning of our new initiative in producing the new e-passport with enhanced security features and new upgraded designs. By leveraging on their in-depth experience and proven track-record, they optimistic that the group stands strong to being the largest ICT solutions provider in Malaysia and will continue to deliver higher and better quality products. (Source: The Edge) JKG Land's 3Q back in black with RM2.7m net profit on property development gains JKG Land s posted a RM2.72m net profit in its 3QFY18 compared to a RM835,000 net loss a year ago. EPS stood at 0.12 sen versus 0.11 loss per share in 3QFY17. Quarterly revenue soared % to RM14.15m from RM3.69m last year. For the cumulative 9MFY18, net profit rose 9.75% to RM11m from RM10.03m last year on the back of RM53.94m revenue, up 25.07% from RM43.13m in 9MFY17. Although the property market would be slow, it is confident that its impact will be manageable as market fundamentals remain resilient. The group will continue to grow its business in view of the strategic locations of its properties and the brand premium it has established. It expects positive performance for FY18 from its existing projects. (Source: The Edge) IOI Properties unit issues first sukuk tranche totalling RM100m IOI Properties's wholly-owned subsidiary Fortune Premiere SB (FPSB) has issued RM100m sukuk to refinance its debt, fund its capital expenditure and for working capital. The sukuk represents the first tranche in a RM3bn Sukuk Murabahah programme that was established with a tenure of up to 15 years from the date of the first issuance. FPSB had on Oct 17, 2017 lodged the relevant information and documents in relation to the sukuk programme with the Securities Commission Malaysia. The 5 year tranche bears profit rate of 4.65% per year, with a yield-to-maturity of 4.65% per year. (Source: The Edge) FGV unit sells almost entire stake in general insurer to Affin, AXA Asia for RM224.38m Affin Holdings today firmed up an agreement to buy 12.87% more in AXA Affin General Insurance (AXA Affin GI) from Felda Marketing Services SB (Felma) for RM180.54m, while AXA Asia agreed to buy up almost all Felma's remainder stake for RM43.84m. Felma, an indirect unit of FGV, inked 2 sales and purchase agreements today for the stake disposal, one with Affin for the million share disposal, and the other with AXA Asia for the sale of 3.72 million shares. The sales will see Felma pocket RM224.38m in proceeds, which will give FGV a net gain of RM26.85m from the disposals, based on its effective investment cost of RM33.28m in the shares which Felma bought for RM90.64m in April The deals translate to RM11.78 per share in AXA Affin GI, which is 1.5x AXA Affin GI s book value of RM7.85 per share as at Dec 31, The disposals will leave Felma with just 100 shares in AXA Affin GI. It now has RM19.05m shares in the general insurer, representing a 16% stake. (Source: The Edge) 3

4 ECONOMIC NEWS BNM: Ringgit strengthened by 10.1% in 2017, USD/RM exchange rate remains stable The USD- RM exchange rate remains stable with USD/RM one-month implied volatility at an average of 4.5% this year. In its updates on the financial market statement, BNM's Financial Markets Committee (FMC) noted that the ringgit had strengthened by 10.1% in 2017, and traded within the range of 4.05 to 4.09 against the US dollar in December. Liquidity has also improved in the onshore market and is able to meet the hedging needs of both residents and non-residents. The onshore foreign exchange market in 2017 sustained a daily average volume of US$9.9bn compared to US$8.1bn in Of this, forward and swap transactions recorded an average of US$3.8bn daily. With the improvement in liquidity, average USD/RM bid-ask spread recorded a lower average of 24 points, relative to spreads of 46 points in The central bank said the onshore forex market volumes are now primarily comprised of real sector trade flows which account for more than 50% of the total volume. (Source: The Edge) EPF employee contribution rate to revert to 11% from Jan 2018 Beginning January 2018, employees will no longer have the option of contributing 8% of their income to the EPF. Instead, the statutory contribution rate for employee's share will revert to the original 11% for members below the age of 60, and 5.5% for those aged 60 and above. The new rate will be effective for salaries from January 2018 onwards (February 2018 EPF contribution). Employers are required to ensure the right amount of contributions are deducted from their employees' salary and remitted to the EPF in accordance with the new contribution rates. It added that members who wished to contribute more than the statutory rate of 11% or 5.5% may do so by completing Form KWSP 17A (AHL) or Form KWSP 17AA (AHL).The option for a reduced contribution rate had been introduced in March (Source: The Edge) US 3Q economic growth trimmed; jobless claims rise The US economy grew at its fastest pace in more than 2 years in the 3Q, powered by robust business spending, and is poised for what could be a modest lift next year from sweeping tax cuts. Other data showed a jump in the number of Americans filing for unemployment benefits. The underlying trend in jobless claims, however, remained consistent with a tightening labour market. Gdp expanded at a 3.2% annualised rate last quarter, its third GDP estimate for the period. While that was slightly down from the 3.3% reported last month, it was the quickest pace since the 1Q15 and was a pickup from the second quarter's 3.1% growth rate. It also marked the 1 st time since 2014 that the economy experienced growth of 3% or more 2 straight quarters. But the expansion in the July-September period likely overstated the health of the economy. (Source: Reuters) UK car output falls in November as domestic demand slumps British car production fell 4.6% in November due to a nearly 30% drop in yoy domestic demand, which an industry body blamed on uncertainty over Brexit and diesel taxation. A total of 161,490 vehicles rolled off British production lines last month, with demand at home falling 28.1% compared with a 1.3% rise in exports, accounting for 85% of all production. YTD volumes stand at 1,577,042 units, down 2% on the first 11 months of last year, according to data released by the Society of Motor Manufacturers and Traders. The trade body had once hoped that 2017 would be the year the industry beat the all-time high of 1.92 million cars set in 1972 but has since scaled backed exceptions, now anticipating full-year volumes to be flat at 1.73 million units. (Source: Reuters) BOJ keeps policy steady, remains upbeat on economy The BOJ kept monetary policy steady despite growing signs of strength in the economy, signalling that it was in no rush to edge away from crisis-mode stimulus with inflation still distant from its 2% target. In a widely expected move, the BOJ maintained the 0.1% interest it charges on a portion of excess reserves that financial institutions park at the central bank. At the 2 day policy meeting that ended on Thursday, it also maintained its yield target for 10 year Japanese government bonds around 0%. Japan's economy is expanding moderately. The decision on maintaining interest rate targets was made by an 8-1 vote. Board member Goushi Kataoka dissented to the decision, arguing that the likelihood of inflation accelerating towards 2% was low. (Source: Reuters) Indonesia Nov palm oil exports likely fell on weak global demand Indonesia's CPO exports likely fell in November on weak demand from main markets such as India and China, while production edged lower. CPO output fell to 3.90 million tonnes in November, from 3.95 million tonnes in October, according to the median estimate in a survey of 2 industry groups and a state research firm. The October output was the highest monthly figure since the survey began in Indonesia is the world's top producer of the widely used vegetable oil. November exports were estimated to have fallen to 2.52 million tonnes in November from 2.75 million tonnes in October. India's move to hike its palm oil import tax led a drop in November imports to the lowest in 8 months. Other markets were also showing weak demand. (Source: Starbiz) 4

5 ECONOMIC CALENDAR Date Time Country Event Period Survey Actual Prior Revised 12/22/ :01 UK Lloyds Business Barometer Dec /22/ :00 GE Import Price Index MoM Nov 0.70% % -- 12/22/ :00 GE Import Price Index YoY Nov 2.60% % -- 12/22/ :00 GE GfK Consumer Confidence Jan /22/ :45 FR PPI MoM Nov % -- 12/22/ :45 FR PPI YoY Nov % -- 12/22/ :45 FR Consumer Spending MoM Nov 1.40% % -- 12/22/ :45 FR Consumer Spending YoY Nov 0.40% % -- 12/22/ :45 FR GDP QoQ 3Q F 0.50% % -- 12/22/ :45 FR GDP YoY 3Q F 2.20% % -- 12/22/ :00 RU Money Supply Narrow Def Dec t -- 12/22/ :00 IT Economic Sentiment Dec /22/ :00 IT Manufacturing Confidence Dec /22/ :00 IT Consumer Confidence Index Dec /22/ :30 UK Current Account Balance 3Q -21.4b b -- 12/22/ :30 UK GDP QoQ 3Q F 0.40% % -- 12/22/ :30 UK GDP YoY 3Q F 1.50% % -- 12/22/ :30 UK Index of Services MoM Oct 0.10% % -- 12/22/ :30 UK Index of Services 3M/3M Oct 0.30% % -- 12/22/ :30 UK Total Business Investment QoQ 3Q F 0.20% % -- 12/22/ :30 UK Total Business Investment YoY 3Q F 1.30% % -- 12/22/ :00 IT Industrial Orders MoM Oct % -- 12/22/ :00 IT Industrial Orders NSA YoY Oct % -- 12/22/ :00 IT Industrial Sales MoM Oct % -- 12/22/ :00 IT Industrial Sales WDA YoY Oct % -- 12/22/ :30 US Personal Income Nov 0.40% % -- 12/22/ :30 CA GDP MoM Oct 0.20% % -- 12/22/ :30 US Personal Spending Nov 0.50% % -- 12/22/ :30 CA GDP YoY Oct 3.50% % -- 12/22/ :30 US Real Personal Spending Nov 0.20% % -- 12/22/ :30 US PCE Deflator MoM Nov 0.30% % -- 12/22/ :30 US PCE Deflator YoY Nov 1.80% % -- 12/22/ :30 US PCE Core MoM Nov 0.10% % -- 12/22/ :30 US PCE Core YoY Nov 1.50% % -- 12/22/ :30 US Durable Goods Orders Nov P 2.00% % -- 12/22/ :30 US Durables Ex Transportation Nov P 0.50% % -- 12/22/ :30 US Cap Goods Orders Nondef Ex Air Nov P 0.50% % -- 12/22/ :30 US Cap Goods Ship Nondef Ex Air Nov P 0.30% % -- 12/22/ :00 US New Home Sales Nov 655k k -- 12/22/ :00 US New Home Sales MoM Nov -4.40% % -- 12/22/ :00 US U. of Mich. Sentiment Dec F /22/ :00 US U. of Mich. Current Conditions Dec F /22/ :00 US U. of Mich. Expectations Dec F /22/ :00 US U. of Mich. 1 Yr Inflation Dec F % -- 12/22/ :00 US U. of Mich Yr Inflation Dec F % -- 12/23/ :00 US Kansas City Fed Manf. Activity Dec /25/ :00 JN Leading Index CI Oct F /25/ :00 JN Coincident Index Oct F /25/ :00 CA Bloomberg Nanos Confidence Dec /26/ :30 JN Jobless Rate Nov 2.80% % -- 12/26/ :30 JN Job-To-Applicant Ratio Nov

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