Market Insight Monday, 1 August, 2016 16795/03/2013(031743) www.bisonline.com.my www.bimbsec.com.my BIMB Securities| 1 Major Highlights Local & Global Economic News Caring's 4Q net profit up 4.2% to RM2.74m Mudajaya secures RM75m loan facility from AmBank Islamic United Malacca eyes JV to boost Indonesian land bank WZ Satu unit wins RM27m job for mechanical works at pipeline project Lembah Beriah to replicate Cyberjaya model - MK Land VS Industry wins RM100m job to make water filters Luxchem's 2Q net profit up 33% on higher contribution from trading, manufacturing segments Ringgit ends easier against USD Broad money growth at 1.9% in June Malaysia's economy posts RM1.15trn in 2015 US Q1 growth potholes less cavernous, revisions show US economy grows at modest 1.2% in 2Q Brexit shockwaves hit UK consumers, firms brace for slowdown Bursa Malaysia Bursa Malaysia Close Change +/- Change % FBMKLCI 1,653.26 -5.24 -0.32 FBMEMAS 11,585.11 -33.87 -0.29 FBM100 11,283.78 -32.32 -0.29 FBMEMAS Shariah 12,198.77 -37.75 -0.31 FBM Hijrah Shariah 13,657.63 -46.07 -0.34 Volume (mn) 1,902.61 -317.85 -14.31 Value (RMmn) 2,027.14 180.40 9.77 FBMKLCI YTD Chg -2.32 Scoreboard Close Change +/- Change % Gainers 330 24 7.84 Losers 440 -22 -4.76 Unchanged 361 12 3.44 Regional Indices Close Change +/- Change % YTD Change (%) DJIA 18,432.24 -24.11 -0.13 5.78 NASDAQ 5,162.13 7.15 0.14 3.09 S&P 500 2,173.60 3.54 0.16 6.34 FTSE 100 6,724.43 3.37 0.05 7.72 Nikkei 225 16,569.27 92.43 0.56 -12.95 HSI 21,891.37 -282.97 -1.28 -0.11 SHCOMP 2,979.34 -14.98 -0.50 -15.82 KOSPI 2,016.19 -4.91 -0.24 2.80 TWSE 8,984.41 -92.23 -1.02 7.75 STI 2,868.69 -49.93 -1.71 -0.49 JCI 5,215.99 -83.22 -1.57 13.56 SET 1,524.07 -0.51 -0.03 18.33 PSEi 7,963.11 -61.87 -0.77 14.54 Market Valuation (PER) FY16 FY17 5Y Average FBMKLCI 16.93 15.78 16.60 SHCOMP 13.78 12.21 11.08 HSI 12.14 10.99 11.05 JCI 16.96 14.63 15.23 SET 16.43 14.39 13.71 STI 13.28 12.73 13.91 PSEi 20.33 18.41 17.40 The Research Team [email protected]03-2613 1738 Sector Indices Close Change +/- Change % Industrial 3,095.15 -15.85 -0.51 Consumer 603.98 -0.25 -0.04 Industrial Products 140.85 -0.59 -0.42 Construction 284.23 -1.34 -0.47 Finance 14,186.45 -30.98 -0.22 Property 1,160.50 -5.03 -0.43 Plantation 7,562.24 -24.73 -0.33 Technology 22.03 -0.06 -0.27 KLCI Futures Contracts Jul-16 Aug-16 High 1,663.00 1,657.50 Low 1,646.00 1,640.50 Last 1,659.00 1,654.50 Volume 6,885.00 797.00 Commodities (Most Recent Close) Close Change +/- (+/- %) % Brent Crude (USD/bbl) 43.53 -0.28 -0.64 WTI Crude (USD/bbl) 41.60 -0.25 -0.60 Gold (USD/ounce) 1,351.00 -2.15 -0.16 CPO (RM/MT) 2,316.00 16.00 0.70 SMR 20 (sen/kg) 507.00 -6.50 -1.27 Latex (sen/kg) 461.00 2.50 0.55 Soybean Oil 30.85 0.87 2.90 Forex (per USD1) Close Change +/- Change % MYR 4.0660 -0.0130 -0.32 JPY 102.0600 -3.2100 -3.05 EUR 0.8949 -0.0079 -0.88 SGD 1.3397 -0.0144 -1.06 KLCI Performance KLCI Year-End Target: 1,729 points 1500 1550 1600 1650 1700 1750 1800 1850 1900 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
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Vastalux Energy Berhad - BIMB · PDF fileguarantee for Mudajaya's performance ... It expects to commence work on Monday ... Luxchem Corporation net profit rose 32.82% to RM13.03m or
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Market Insight
Monday, 1 August, 2016
16795/03/2013(031743) www.bisonline.com.my
www.bimbsec.com.my BIMB Securities| 1
Major Highlights Local & Global Economic News
Caring's 4Q net profit up 4.2% to RM2.74m
Mudajaya secures RM75m loan facility from AmBank Islamic
United Malacca eyes JV to boost Indonesian land bank
WZ Satu unit wins RM27m job for mechanical works at
pipeline project
Lembah Beriah to replicate Cyberjaya model - MK Land
VS Industry wins RM100m job to make water filters
Luxchem's 2Q net profit up 33% on higher contribution from
trading, manufacturing segments
Ringgit ends easier against USD
Broad money growth at 1.9% in June
Malaysia's economy posts RM1.15trn in 2015
US Q1 growth potholes less cavernous, revisions show
US economy grows at modest 1.2% in 2Q
Brexit shockwaves hit UK consumers, firms brace for
Dutch Lady 63.98 0.98 1.56 Panasonic Manufacturing Mala
39.78 0.60 1.53
Ajinomoto 14.82 0.34 2.35 Perusahaan Sadur Timah Malay
6.39 0.17 2.73
Top Losers
Close Change+/- (+/- %)
United Plantations 26.54 -0.52 -1.92
Heineken 18.00 -0.30 -1.64
Genting 8.22 -0.29 -3.41
Hong Leong Financial 15.22 -0.28 -1.81
Aeon Credit Service 14.20 -0.26 -1.80
Daily Participation
Participation
(%) Bought (RMm)
Sold (RMm)
Net (RMm)
Local Inst 55 1,070.8 1,161.0 -90.2
Local Retail 14.1 304.9 267.1 37.8
Foreign 30.9 651.5 599.1 52.4
Total 100.0 2,027.2 2,027.2 0.0
Weekly Participation
Participation
(%) Bought (RMm)
Sold (RMm)
Net (RMm)
Local Inst 57.0 4,906.9 4,998.9 -92.0
Local Retail 16.2 1,395.2 1,408.7 -13.5
Foreign 26.8 2,416.8 2,311.3 105.5
Total 100.00 8,718.9 8,718.9 0.0
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Market Insight
LOCAL CORPORATE NEWS Caring's 4Q net profit up 4.2% to RM2.74m Caring Pharmacy net profit for 4QFY16 gained 4.2% to RM2.74m or 1.26 sen per share, against RM2.63m or 1.21 sen per share a year ago, due to higher sales. Revenue for the quarter was also up 13.5% to RM108.33m, from RM95.41m in 4QFY15, driven by higher sales generated from existing outlets, due to aggressive and extensive promotional campaigns launched. The pharmacy chain operator proposed a final dividend of 1.5 sen per share, subject to shareholders' approval at the forthcoming annual general meeting. Though Caring posted better quarterly earnings, its annual net profit was down 43.4% to RM7.29m or 3.35 sen per share, weighed down by higher cost of sales, which rose to RM322.2m from RM284.77m in FY15. It registered a net profit of RM12.87mi or 5.91 per share in FY15.. (Source: The Edge) Mudajaya secures RM75m loan facility from AmBank Islamic Mudajaya, which has secured works for a portion of the Sarawak side of the Pan Borneo Highway yesterday, says it has obtained RM75m worth of credit facility from AmBank Islamic. Most of the facility — RM50m — is in the form of a bank guarantee for Mudajaya's performance bonds, tender deposits, advance payment, excise duty fee, sales tax, and earnest money for tender or security deposits. Another RM15m is in shariah-compliant hire purchase facility, for Mudajaya to buy equipment and machinery. (Source: The Edge) United Malacca eyes JV to boost Indonesian land bank United Malacca (UMB) has inked a MoU with the intention of forming a JV arrangement with PT Bintang Gemilang Permai (BGP), whose 99.9% owned unit holds a concession right to develop 59,920ha in Central Sulawesi, Indonesia. The MoU was signed with Adhi Indrawan and Kartika Dianningsih Antono, without specifying whether they are the owners of BGP. UMB will acquire 60% equity interest in the JV company for a sum to be mutually determined and agreed by the parties subject to approval from the relevant authorities and applicable laws. (Source: StarBiz) WZ Satu unit wins RM27m job for mechanical works at pipeline project WZ Satu Bhd's unit has clinched a RM27.03m contract from Shell MDS (Malaysia) SB (SMDS) for mechanical works at a SMDS pipeline project. Its wholly-owned subsidiary Misi Setia Oil & Gas SB (MSOG) was awarded the contract for a 13-month period. It expects to commence work on Monday (Aug 1). The LOA is expected to contribute positively to the future earnings and net assets per share of the group for the FY17. MSOG had earlier in June clinched a RM46.75m contract from the Petrofac E&C SBto carry out field installation of pipes, fittings, pre-fabricated pipe spools, valves and in-line instrument valves for Refinery and Petrochemical Integrated Development (Rapid) project's package 4. (Source: The Edge) Lembah Beriah to replicate Cyberjaya model - MK Land The development of Lembah Beriah, Alor Pongsu, about 100 km from here, will replicate the Cyberjaya model. The 3,000-hectare mixed-use development project would be another mammoth project for MK Land after Cyberjaya, which was developed by its subsidiary, Setia Haruman SB. Lembah Beriah is set to attract local and foreign investors, and even some foreign investors in Cyberjaya were contemplating of moving out to low-cost areas due to high cost of operations and lack of skilled labour. (Source: Bernama) VS Industry wins RM100m job to make water filters Electronic products maker, VS Industry, has secured a RM100m contract to manufacture water filters for NEP, a company in which it is buying a 20% stake for RM60m cash. The contract to manufacture the Diamond branded water filtration system is for 12 months. The group, which manufacturers vacuum cleaners for Dyson, has sufficient manufacturing capacity in Malaysia, Indonesia and China to support NEP’s expansion plan into the new markets. (Source: StarBiz)
Luxchem's 2Q net profit up 33% on higher contribution from trading, manufacturing segments Luxchem Corporation net profit rose 32.82% to RM13.03m or 4.86 sen a share for the 2QFY16, from RM9.81m or 3.75 sen a share a year earlier, on higher contribution from its trading and manufacturing segments. Revenue climbed 9.2% to RM175.85m from RM161.03m in 2QFY15. For the 1HFY16, net profit increased by 76.32% to RM20.03m or 7.47 sen a share from RM11.36m or 4.35 sen a share in 1HFY15. Revenue inched up 0.67% to RM335.82m from RM333.57m. Luxchem's trading segment posted a 7.39% increase in revenue to RM139.11m in 2QFY16 from RM129.54m in the previous corresponding quarter, but recorded an 18.32% decline in pre-tax profit to RM11.46m from RM14.03m. (Source: The Edge)
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Market Insight
LOCAL AND GLOBAL ECONOMIC NEWS Ringgit ends easier against USD The ringgit ended easier against the greenback, driven by Bank of Japan's monetary stimulus news that was perceived negatively. The local unit was quoted at 4.0670/0740 against the US dollar from 4.0470/0520 on Thursday. Investors were left empty handed during trading on Friday following the BOJ expansion of monetary stimulus which fell below market expectations. (Source: Bernama) Broad money growth at 1.9% in June, says BNM On an annual basis, broad money (M3) growth moderated slightly to 1.9% in June compared with 2.2% in May, driven mainly by the continued extension of credit to the private sector by the banking system. The expansion, however, was partially offset by the continued issuance of equity by financial institutions and reclassification of Islamic Investment Accounts that took place in July 2015. M3 is measure of money supply. It comprises M1, namely money in circulation and cash deposits in banks, as well as M2 of plus time, savings and foreign currency deposits. (Source: StarBiz) Malaysia's economy posts RM1.15trn in 2015 Malaysias economy recorded a value of RM1.157trn in 2015 compared to RM1.106trn registered in 2014. Gross Operating Surplus (GOS) held the largest share in income components at 60.5% while Compensation of Employees contributed 34.8% to Malaysias economy. The remaining 4.7% was contributed by Taxes less Subsidies on Production and Imports. The overall economy recorded a growth of 4.6% in 2015 supported by the positive performance in services, manufacturing and construction sectors. (Source: Bernama) US Q1 growth potholes less cavernous, revisions show The US economy grew more slowly than expected in the second quarter of 2016, rising a modest 1.2%, according to an advance estimate released Friday by the Commerce Department. The department also revised Q1 growth estimates for gross domestic product downward to 0.8% from 1.1%, reflecting results in residential investment, private inventories and exports that were poorer than previously reported. The Q2 results were well below analysts’ expectations of 2.6% growth and could temper the cautious optimism expressed at this week’s meeting of the US Fed Reserve. (Source: AFP) US economy grows at modest 1.2% in 2Q The world's top economies will work to tackle excess production capacity in steel and some other industries, including government subsidies that have distorted markets. That excess capacity problems, exacerbated by a weak global economic recovery and depressed market demand, have caused a negative impact on trade and workers. The document, which is still subject to change until a final version, adopted the same language agreed by G20 trade ministers on July 10. (Source: Reuters) Brexit shockwaves hit UK consumers, firms brace for slowdown Shockwaves from Britain’s vote to leave the EU are reverberating through the economy, with surveys published yesterday showing a dive in consumer confidence and a slowdown in construction. Preparing for a Brexit-related slowdown, Lloyds Banking Group said it would cut 3,000 jobs and one of Britain’s biggest car dealerships, Inchcape, predicted growth in new car registrations would slow. Just over a month after the referendum, the latest signals of an economic slowdown are likely to fuel expectations of action from the Bank of England on Aug 4, when many economists believe it will cut interest rates and might start buying bonds again. (Source: Reuters)
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Market Insight
ECONOMIC CALENDAR
Date Time Country Event Survey Actual Prior Revised
08/01/2016 06:41 DR Overnight Rate 29-Jul -- 5.00% 5.00% --
08/01/2016 07:00 SK BoP Goods Balance Jun -- $12819m $10738m --
08/01/2016 07:30 AU AiG Perf of Mfg Index Jul -- -- 51.8 --
08/01/2016 08:00 AU CoreLogic House Px MoM Jul -- -- 0.50% --
08/01/2016 08:00 SK Exports YoY Jul -6.70% -- -2.70% -- 08/01/2016 08:00 SK Imports YoY Jul -10.50% -- -8.00% --
08/01/2016 08:00 SK Trade Balance Jul $8189m -- $11643m --
08/01/2016 09:00 AU Melbourne Institute Inflation MoM Jul -- -- 0.60% --
08/01/2016 09:00 AU Melbourne Institute Inflation YoY Jul -- -- 1.50% --
08/01/2016 09:00 AU HIA New Home Sales MoM Jun -- -- -4.40% -- 08/01/2016 09:00 CH Manufacturing PMI Jul 50 -- 50 --
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 (290163-X) A Participating Organisation of Bursa Malaysia Securities Berhad Level 32, Menara Multi Purpose, Capital Square, No. 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur Tel: 03-2613 1600 Fax: 03-2613 1799 Azharuddin Nordin http://www.bimbsec.com.my Head of Research
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 with 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 opin-ions and estimates included in this report constitute our judgement as of this date and are subject to change without notice..
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 with 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 opin-ions and estimates included in this report constitute our judgement as of this date and are subject to change without notice..
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 with 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 opin-ions and estimates included in this report constitute our judgement as of this date and are subject to change without notice..