19 October 2016 Affin Hwang Investment Bank Bhd (14389-U) Page 1 of 1 Premier contractor WZ Satu (WZS) is an established subcontractor and partner of choice for IJM Corp and UEM Builders. Its bauxite mining operation was adversely affected by the mining ban imposed by the government. Rising construction earnings partly offset the lower mining earnings in 9MFY16. WZS’s FY15 PER of 14x is below the small-cap construction peer average of 16x. Core construction operation WZS’s core operation is the provision of construction and engineering services, specializing civil and onshore oil and gas (O&G) works. Its management team has extensive experience in the industry and some were senior managers/directors in Road Builder (merged with IJM Corp) and PATI Sdn Bhd (construction arm of UEM Builders) previously. WZS also manufactures steel components for the O&G and airline industries. Its two associate companies (30-49% stake) are involved in bauxite mining. Growing order book The company expects the expansion of its construction order book to drive earnings growth. Its order book increased to RM885m at end-FY16 compared to RM768m at end-FY15. Its current order book is RM933m, equivalent to 3.5x FY15 revenue. It is bidding for works on the RM3.74bn Setiawangsa-Pantai Expressway and RM4bn Central Spine Road project (partnering UEM Builders). WZS is targeting new contract wins of at least RM0.5bn to grow its order book to RM1.2bn by end-FY17. Bauxite ban WZS benefited from the bauxite mining boom in Pahang, which led to its share of associate PAT rising to RM18.5m (82% of group PAT) in FY15 from RM4.5m in 16MFY14. Associate PAT fell 44% yoy to RM7.2m in 9MFY16 due to the ban on bauxite mining early this year. The ban was extended to end-2016 but Approved Permits (AP) were granted to WZS to export its stockpile and the company expects this be a benefit in 4QFY16. Financials and valuation WZS’s net profit fell 13% yoy to RM14.9m in 9MFY16 due to the fall in associate income. Core construction and manufacturing PAT rose 78% yoy to RM7.3m in 9MFY16 (50% of group PAT) to partially offset the decline in associate PAT. Conservatively, the FY15 fully diluted PER is 18x, assuming full conversion of warrants expiring in 2024. Earnings & Valuation Summary FYE 31 Aug (RMm) 2011A 2012A 2013A 2014A* 2015A Revenue 73.3 84.7 86.9 120.3 351.4 EBITDA 6.4 6.2 7.5 12.5 16.9 Pretax profit 1.6 1.3 2.8 11.5 26.7 Net profit 1.2 0.8 2.7 8.8 20.7 EPS (sen) 0.9 0.6 2.1 5.9 5.6 PER 107.3 160.8 47.4 22.8 17.8 Core net profit 1.2 0.7 6.3 11.4 20.9 Core EPS (sen) 0.9 0.6 4.9 7.1 5.7 Core EPS growth (%) NA (36.4) 763.7 17.1 25.0 Core PER 112.1 176.3 20.4 18.9 17.7 Net DPS (sen) - - - - 2.0 Dividend Yield (%) - - - - 2.0 EV/EBITDA 53.3 59.9 49.0 28.9 19.8 Chg in EPS (%) - - - - - Affin/Consensus (x) - - - - - * Change in FY from 30 Apr to 31 Aug. 16 months ended 31 Aug 2014 result. PER annualized. Source: Affin Hwang, company data Company Note WZ Satu WENG MK Sector: Construction RM1.00 @ 18 October 2016 Not Rated 0.00 0.50 1.00 1.50 2.00 2.50 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 (RM) Price Performance 1M 3M 12M Absolute -2.9% -2.0% -7.7% Rel to KLCI -3.8% -1.8% -5.0% Stock Data Issued shares (m) 340.4 Mkt cap (RMm)/(US$m) 340.4/81.2 Avg daily vol - 6mth (m) 0.2 52-wk range (RM) 0.85-1.43 Est free float 22.8% BV per share (RM) 0.86 P/BV (x) 1.2 Net cash/ (debt) (RMm) (3Q16) 16.3 ROE 7.2% Derivatives Nil Shariah Compliant Yes Key Shareholders Tengku Dato’ Sri Uzir 26.4% Tan Ching Kee 13.5% Ong Lee Veng 6.8% Lembaga Tabung Haji 6.7% Source: Affin, Bloomberg Loong Chee Wei CFA (603) 2146 7548 [email protected]Cassandra Ooi (603) 2146 7481 [email protected]
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WZ Satu€¦ · 19/10/2016 · Founder of WZ Satu Berhad (previously known as Weng Zheng Resources Berhad) 37 years of experience in the steel trading business Brother of Mr. Tan
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19 October 2016
Affin Hwang Investment Bank Bhd (14389-U)
Page 1 of 1
Premier contractor
WZ Satu (WZS) is an established subcontractor and partner of
choice for IJM Corp and UEM Builders. Its bauxite mining operation
was adversely affected by the mining ban imposed by the
government. Rising construction earnings partly offset the lower
mining earnings in 9MFY16. WZS’s FY15 PER of 14x is below the
small-cap construction peer average of 16x.
Core construction operation
WZS’s core operation is the provision of construction and engineering
services, specializing civil and onshore oil and gas (O&G) works. Its
management team has extensive experience in the industry and some
were senior managers/directors in Road Builder (merged with IJM Corp)
and PATI Sdn Bhd (construction arm of UEM Builders) previously. WZS
also manufactures steel components for the O&G and airline industries. Its
two associate companies (30-49% stake) are involved in bauxite mining.
Growing order book
The company expects the expansion of its construction order book to drive
earnings growth. Its order book increased to RM885m at end-FY16
compared to RM768m at end-FY15. Its current order book is RM933m,
equivalent to 3.5x FY15 revenue. It is bidding for works on the RM3.74bn
Setiawangsa-Pantai Expressway and RM4bn Central Spine Road project
(partnering UEM Builders). WZS is targeting new contract wins of at least
RM0.5bn to grow its order book to RM1.2bn by end-FY17.
Bauxite ban
WZS benefited from the bauxite mining boom in Pahang, which led to its
share of associate PAT rising to RM18.5m (82% of group PAT) in FY15
from RM4.5m in 16MFY14. Associate PAT fell 44% yoy to RM7.2m in
9MFY16 due to the ban on bauxite mining early this year. The ban was
extended to end-2016 but Approved Permits (AP) were granted to WZS to
export its stockpile and the company expects this be a benefit in 4QFY16.
Financials and valuation
WZS’s net profit fell 13% yoy to RM14.9m in 9MFY16 due to the fall in
associate income. Core construction and manufacturing PAT rose 78%
yoy to RM7.3m in 9MFY16 (50% of group PAT) to partially offset the
decline in associate PAT. Conservatively, the FY15 fully diluted PER is
18x, assuming full conversion of warrants expiring in 2024.
Earnings & Valuation Summary
FYE 31 Aug (RMm) 2011A 2012A 2013A 2014A* 2015A
Revenue 73.3 84.7 86.9 120.3 351.4
EBITDA 6.4 6.2 7.5 12.5 16.9
Pretax profit 1.6 1.3 2.8 11.5 26.7
Net profit 1.2 0.8 2.7 8.8 20.7
EPS (sen) 0.9 0.6 2.1 5.9 5.6
PER 107.3 160.8 47.4 22.8 17.8
Core net profit 1.2 0.7 6.3 11.4 20.9
Core EPS (sen) 0.9 0.6 4.9 7.1 5.7
Core EPS growth (%) NA (36.4) 763.7 17.1 25.0
Core PER 112.1 176.3 20.4 18.9 17.7
Net DPS (sen) - - - - 2.0
Dividend Yield (%) - - - - 2.0
EV/EBITDA 53.3 59.9 49.0 28.9 19.8
Chg in EPS (%) - - - - -
Affin/Consensus (x) - - - - - * Change in FY from 30 Apr to 31 Aug. 16 months ended 31 Aug 2014 result. PER annualized.
WZ Satu acquired WZS KenKeong Sdn Bhd (WZSK) in May 2014, which
is involved in construction, and Misi Setia Oil & Gas Sdn Bhd in October
2014, which is involved in onshore oil and gas construction. WZSK was
acquired. The acquisitions diversified the company’s operation from
manufacturing cold drawn bright steel polished shaft, which is facing rising
cost pressure and stagnant market demand.
Enhanced capabilities through acquisitions
By acquiring WZSK and Misi, the company built up its capabilities in
construction and engineering with the entry of key management personnel
with extensive experience in the industry. For example, Senior Executive
Director/Chief Operating Officer Dato’ IR William Tan, who was the
founder of WZSK, has 36 years of experience in the construction industry
and worked in the Public Works Department and Road Builder previously.
Relationship with Pahang state government
WZS’s Executive Chairman/CEO Tengku Dato’ Sri Uzir bin Tengku Dato’
Ubaidillah was an Executive Director of Tanah Makmur Bhd previously.
His close relationship with Tanah Makmur and the Pahang royalty led to
WZS venturing into bauxite mining through its 49%-owned associate SE
Satu Sdn Bhd and 30%-owned associate SE Satu Pelangi Sdn Bhd.
Fig 1: Directors’ profile
Name Designation Age Profile
YM Tengku Dato’ Sri Uzir Bin Tengku Dato’ Ubaidillah
Executive Chairman / Chief Executive Officer
56 Bachelor of Science (Honours) Degree in Civil Engineering in the City University
Started his career with Jabatan Kerja Raya as an engineer
Chief Executive Officer of Malaysian General Investment Corporation Berhad (now known as Sumatec Resources Berhad) from 1990 to 1993
Board of Road Builder (M) Holdings Berhad, Kurnia Setia Berhad and Project Penyelenggaran Lebuhraya Berhad
Executive Director of Tanah Makmur Berhad in 2011
Dato’ Ir. William Tan Chee Keong
Senior Executive Director / Chief Operating Officer
60 Bachelor of Science (Honours) in Civil Engineering in the University of Nottingham
A member of The Institution of Engineers Malaysia and registered Professional Engineer.
Started his career in Jabatan Kerja Raya and worked there from 1980 to 1984
Was a project manager in Ken Holdings Sdn Bhd and Dayapi Bhd
A Senior Project Manager (later Project Director) of Road Builder group of companies in 1992
Appointed as an Executive Director in Road Builder (M) Sdn Bhd
Founded WZS KenKeong Sdn Bhd in 2007 after he left the Road Builder group
Mr. Tan Teng Heng
Executive Director / Chief Financial Officer
51 A member of the The Malaysian Institute of Certified Public Accountants
Trained in the big four audit and consultancy firms
Prize winner in two professional subjects i.e. Financial Accounting and Management Accounting.
Was the CEO of an options and futures company which was then a member of KLOFFE (Kuala Lumpur Options and Financial Futures Exchange)
Was with HwangDBS Investment Bank Berhad as Senior Vice President.
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Affin Hwang Investment Bank Bhd (14389-U)
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Mr. Tan Ching Kee
Senior Executive Director
56 Founder of WZ Satu Berhad (previously known as Weng Zheng Resources Berhad)
37 years of experience in the steel trading business
Brother of Mr. Tan Chong Boon, a Director of the Company and brother-in-law of Mr. Ng Chong Tin, an Alternate Director of the Company.
Mr. Tan Chong Boon,
Executive Director
50 Degree (Honours) in Civil Engineering in the Universiti Putra Malaysia (UPM)
Experience in the areas of designing and building civil and structural works
Established the Group’s cold drawn bright steel production plant in 1995 and later, he managed the Group’s venture into the production of high-end freecutting polished shafts for office automation
Dato’ Ir. Mohd Ghazali Bin Kamaruzaman,
Executive Director
50 A member of The Institution of Engineers, Malaysia and Board of Engineers, Malaysia
Bachelor’s degree in Civil Engineering from Victoria University of Technology, Melbourne
Master’s degree in Project Management from Universiti Teknologi Mara (UiTM)
More than 26 years of experience in civil engineering works
Design engineer with the Shire of Melton, Victoria Australia in 1988
Engineer in PATI Sdn Bhd and later PATI Pave Sdn Bhd
Notable projects - North South Expressway, Second Link, Central Link, Manila Cavite Expressway, Jalan Pahang, Lebuhraya Pantai Timur (LPT), PUTRA LRT, KL – Salak Expressway, Bangi Seremban Third Lane Widening and Simpang Pulai – Blue Valley.
Founded Prisma Simfoni Sdn Bhd in 2005 specialized in road construction, earthworks, building construction and waterworks
Notable projects - Third Lane Widening Tg. Malim to Slim River, Missing Link Awan Besar to KESAS Highway, UPSI infrastructure works, Batu Embun Water Intake and Treatment Plant, Herbal Centre Phase 2 for Technology Park Malaysia, Commercial & Office Building for UDA (North) in Seberang Prai and Non Revenue Water (NRW) for PAIP.
Dato’ Amin Rafie Bin Othman
Deputy Chairman / Senior Independent Non-Executive Director
56 Chairman of the Nomination Committee, Remuneration Committee and a member of the Audit Committee
A joint degree in Economics and International Politics in 1982
Master of Business Administration degree from the City University of London, United Kingdom.
Chairman of Asia Solar Generation Ventures Sdn Bhd
Managing Director of Plynlymon Capital Sdn Bhd and Rampai Ulltima Sdn Bhd
A Director of PDAC Formis Sdn Bhd (Brunei)
Past President of the Malaysian Association of Asset Managers
A member of the Listing Committee of Bursa Malaysia Securities Berhad.
Datuk Idris bin Haji Hashim
Independent Non-Executive Director
63 Diploma in Town and Regional Planning from Universiti Teknologi Mara (UiTM) in 1975
Master of Science, City and Regional Planning from Illinois Institute of Technology, Chicago in 1978.
Started his career as an assistant town planner with Arkitek Bersekutu Malaysia in 1975 articipated in projects such as Pusat Bandar Bukit Raden, Kompleks Perdagangan Kuantan in Pahang and Bangunan Sri Mara in Kuala Lumpur
Attached to North-Eastern Illinois Planning Commission, Chicago as a Planner where he was involved in various large projects in the State of Illinois as well as the New Jeddah International Airport, King Abdul Aziz University and Automotive Centre for Sears Roebuck & Co. He
Lecturer in the School of Architecture, Planning and Surveying of UiTM in 1980.
Director of Focus Point Holdings Berhad.
19 October 2016
Affin Hwang Investment Bank Bhd (14389-U)
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Dato’ Syed Kamarulzaman Bin Dato’ Syed Zainol Khodki Shahabudin,
Independent Non-Executive Director
50 Master’s in Science and Corporate Communication from School of Modern Languages & Communication, Universiti Putra Malaysia (UPM)
Bachelor’s in Business Administration from School of Business, Royal Melbourne Institute of Technology (RMIT)
Diploma in Business Studies from Mara Institute of Technology
Chairman of the Shariah Advisory Committee
Managing Director of Perbadanan Nasional Berhad (PNS) since 1st December 2007
Member of PNS’s Directors Investment Committee.
Was previously the Managing Director of Yayasan Tekun Nasional
20 years of experience in banking with last attachment at Bank Muamalat Malaysia Berhad as a Branch Manager
Lecturer at Universiti Tenaga Nasional (UNITEN)
Dato’ Yeong Kok Hee,
Independent Non-Executive Director
55 A member of the Audit Committee, Remuneration Committee and Nomination Committee
Consultant of CSC Malaysia Sdn Bhd focused in the areas of Managed Services, Technology Consulting and Complex System Integration.
Established and developed a significant number of strategic relationships and alliances with the senior management of the financial and governmental sectors
Encik Rosli Bin Shafie
Independent Non-Executive Director
63 Chairman of the Audit Committee and a member of Remuneration Committee and Long Term Incentive Plan Committee
Advanced Diploma in Accountancy from ITM (presently known as UiTM)
A member of the Malaysian Institute of Accountants
Was appointed as the Chief Operating Officer/Director of PATI Sdn Bhd
Assumed the position of Chief Financial Officer for UEM Builders Bhd. He left UEM Builders Bhd upon attaining the mandatory retirement age in 2007
Was also appointed as Chief Financial Officer for Willis (Malaysia) Sdn Bhd, insurance brokers and consultants from January 2011 to February 2013
Mr. Ng Chong Tin,
Alternate Director to Mr. Tan Chong Boon
50 Embarked on his career in the steel industry in 1985 and join the Group in its early days as a co-founder and Director
32 years of experience in the development of sales and marketing strategies
In charge of the sales and marketing functions of the Group’s steel trading business.
Mr. Choi Chee Ken
Alternate Director to Dato’ Ir. Mohd Ghazali Bin Kamaruzaman
52 Bachelor’s degree in Civil Engineering from University of Ohio, USA
More than 21 years of working experience in the construction and building materials industries
Began his career as an Engineer in Associated Concrete Product Sdn Bhd in 1989
Consultant engineer in Sepakat Setia Perunding Sdn Bhd
Senior Project Manager in Road Builder (M) Sdn Bhd from 1996 to 2005 Source: Company
Acquisitions came with profit guarantees
WZSK was acquired for RM27.5m (PER of 5x based on guaranteed profit).
The acquisition of WZSK comes with profit guarantees of RM5.67m p.a. in
2015-2017. Misi was acquired for RM27m (PER of 7x based on
guaranteed profit) with purchase consideration paid partly in cash
(RM16.2m) and new WZS shares (RM10.8m). The acquisition of Misi
comes with profit guarantees of RM4m p.a. in 2015-2017. The profit
guarantees provide a floor on future earnings up to 2017.
19 October 2016
Affin Hwang Investment Bank Bhd (14389-U)
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Fig 2: WZ Satu corporate structure
Source: Company
Growing order book
WZS is emerging as a preferred subcontractor for major
construction/infrastructure companies such as Gamuda, IJM Corp, UEM
Builders, Ekovest and Malaysian Resources Corp (MRCB). Some of the
subcontract work for major infrastructure projects that WZS was involved
in include Ipoh-Padang Besar Electrified Double Tracking Rail, Sungai
Besi Highway upgrading and access road for Ulu Jerai Hydroelectric
projects.
WZS’s construction order book has grown substantially over the past three
years. The current order book is RM933m, equivalent to 3.5x FY15
revenue. This represents a 257% increase from RM261m as at 31 August
2014. Management thinks the rising order book will support the company’s
construction and oil & gas segments. Construction operations contributes
RM752m or 81% of the total order book while oil and gas division
contributes the remaining RM181m or 19% of total order book.
19 October 2016
Affin Hwang Investment Bank Bhd (14389-U)
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Fig 3: Total order book at end of each financial year
Source: Company; FY17E is company estimate
Mainly involved in highway and RAPID projects
The major construction projects in its order book currently are subcontract
packages for the West Coast Expressway (awarded by IJM Corp) and
Duta Ulu Kelang Expressway Phase 2 (awarded by Ekovest). The major
oil and gas projects are works for Petronas’s RAPID project in Johor.
Fig 4: Construction order book as at 31 August 2016
Source: Company
19 October 2016
Affin Hwang Investment Bank Bhd (14389-U)
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Fig 5: Onshore oil and gas order book as at 31 August 2016
Source: Company
Bidding for DUKE Phase 3 and Central Spine Road projects
WZ Satu is bidding for works on the RM3.74bn Setiawangsa-Pantai
Expressway and RM4bn Central Spine Road project (partnering UEM
Builders). WZS is targeting new contract wins of at least RM0.5bn to grow
its order book to RM1.2bn by end-FY17. The upcoming Budget 2017 to be
announced on 21 October could see the government allocating funds for
further phases of the CSR project.
Main contractor in potential new projects
WZS expects its construction PBT margin of 4.7% in FY15 to improve in
the long run as it undertakes larger projects (gaining economies of scale)
and moves up the value chain to become the main contractor for potential
new projects. WZ Satu will likely be part of the consortium led by UEM
Builders for the CSR project and hence believes it can earn better profit
margins as a main contractor.
New rail link proposed
Prime Minister Datuk Seri Najib Razak unveiled a series of new initiatives
this week to modernise the country’s public transportation to help the
economy and improve connectivity for the people. Topping the list was the
new 600 km East Coast Rail Link (ECRL) from Kuala Lumpur to Tumpat,
Kelantan, via Kuantan, Kemaman and Kuala Terengganu (New Straits
Times).
The cost of the project is uncertain with some media sources indicating
that it could cost around RM60bn, which seems high. Based on the
RM38m cost per km of the completed Ipoh-Padang Besar Double Tracking
project, the 600 km ECRL could cost over RM23bn due to the
mountainous terrain that it passes through and construction
19 October 2016
Affin Hwang Investment Bank Bhd (14389-U)
Page 8 of 8
costescalation. Announcing the ECRL strengthens the pipeline of
infrastructure projects for construction companies to potentially expand
their order books.
Potential beneficiary of East Coast Rail Link
WZS could be a beneficiary of the ECRL given its established track record,
being one of the subcontractors for the RM12.5bn Ipoh-Padang Besar
Double Tracking Rail project. The project was undertaken by a joint
venture between MMC Corp and Gamuda as the main contractor.
Bauxite reserves expected to last over three years
WZS ventured into bauxite mining through its 49%-owned associate SE
Satu Sdn Bhd and 30%-owned associate SE Satu Pelangi Sdn Bhd in
FY14. The mines are located in Bukit Goh, Pahang, with estimated
reserves of about 3.5 years.
Bauxite ban could be lifted
WZS benefited from the bauxite mining boom in Pahang, which led to its
share of associate PAT rising to RM18.5m (82% of group PAT) in FY15
from RM4.5m in 16MFY14. Associate PAT declined 44% yoy to RM7.2m
in 9MFY16 due to the ban on bauxite mining early this year. The ban has
been extended to end-2016 but Approved Permits (AP) were granted to
WZS to export its stock pile and the company expects this to be a benefit
in 4QFY16.
Bauxite demand remains strong from China
Bauxite demand remains strong from China following a rebound in
aluminium prices. The possible lifting of the ban on bauxite mining
activities in Pahang would benefit WZS.
Fig 6: London Metal Exchange Aluminium Cash Price (LOAHDY)
Source: Bloomberg
19 October 2016
Affin Hwang Investment Bank Bhd (14389-U)
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Highway concession acquisition plan falls through
WZS has aggressive plans to expand into the highway infrastructure
concession business. It signed a Heads of Agreement (HOA) with SILK
Holdings Bhd for the proposed acquisition of the Kajang Traffic Dispersal
Ring Road concession for RM368m. The proposed price was larger than
the WZS’s market capitalisation. Negotiations were mutually terminated on
23 September 2016 as both parties were unable to reach a deal. WZS’s
management clarified that it had preferred the purchase consideration to
be partially settled in new shares to be issued by WZS but SILK had
preferred an all-cash deal.
Moving up the value chain in aircraft manufacturing
WZS also plans to expand its aircraft component manufacturing business
(high value added) and exit from the cold drawn bright steel polished shaft
manufacturing business (low value added). The company thinks this could
improve manufacturing profit margin in the long run. Currently, it is a Tier 3
aerospace company and is targeting to move up to Tier 2 next year by
investing in new state-of-the-art machines. WZS thinks high start-up costs
could dampen manufacturing earnings in the short term but there could be
long-term benefits if it is successful in moving up the value chain.
Financials and valuation
WZS’s net profit fell 13% yoy to RM14.9m in 9MFY16 due to the fall in
associate income. Core construction and manufacturing PAT rose 78%
yoy to RM7.3m in 9MFY16 (50% of group PAT) to partially offset the
decline in associate PAT. This led to the rising earnings contribution from
its core construction and manufacturing operation to 50% of group PAT in
9MFY16 from 18% of group PAT in FY15.
Fig 7: Group net profit breakdown
Source: Company
19 October 2016
Affin Hwang Investment Bank Bhd (14389-U)
Page 10 of 10
Fig 8: Group net profit breakdown in percentage
Source: Company
WZS’s FY15 PER of 14x is below the small-cap construction peer average
of 16x. Conservatively, the FY15 fully diluted PER is 18x, assuming full
conversion of warrants expiring in 2024.WZS has net cash of RM16.3m or
RM0.05/share as at 31 May 2016, which should support the company’s
plan to gear up to expand via acquisitions if opportunities arise, as the
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) (“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) A Participating Organisation of Bursa Malaysia Securities Bhd Chulan Tower Branch, 3rd Floor, Chulan Tower, No 3, Jalan Conlay, 50450 Kuala Lumpur. www.affinhwang.com Email : [email protected] Tel : + 603 2143 8668 Fax : + 603 2145 3005