Download Report

MERCURY SECURITIES
SDN BHD (113193-W)
MARKET FLASH
TUESDAY, 31 MAR 2015
(A Participating Organisation of Bursa Malaysia Securities Berhad)
LOCAL
NEWS HIGHLIGHTS
DOMESTIC
Close
Day Chg
FTSE KLCI
1,824.14
10.77
Volume (mil)
1,837.01
192.35
Value (RM’mil)
1,527.33
(293.04)
• Astro pre-tax profit rises to RM720.9mil
Up
400.00
• Datasonic awarded RM32mil contract
Down
383.00
Unchanged
339.00
• Lay Hong to reduce share placement to 15%
• Seacera to develop project worth RM10bil in GDV
FOREIGN
FOREIGN
• Holcim sells Siam City Cement stake
Dow Jones
17,976.31
263.65
Nasdaq CI
4,947.44
56.22
S&P 500
2,086.24
25.22
FTSE 100
6,891.43
36.41
Nikkei 225
19,411.40
125.77
3,786.57
95.47
ECONOMY / COMMODITY / CURRENCY
Shanghai CI
• Ringgit lower against dollar
HSI
24,855.12
368.92
STI
3,456.29
6.19
3.71
0.03
48.17
(0.62)
1,189.26
(8.90)
RM
Chg
PRIVA
0.400
0.035
• Gold drops on strong dollar, Fed’s Yellen rate hike
comment
Other Stats
• CPO hits near 2-week low before turning positive
USD/MYR
• Oil ease s a big powers negotiate with Iran
WTI (USD/barrel)
Gold (USD/troy oz)
IPO
Most Active
• Bioalpha (ACE Market)
-
IPO price: RM0.20
INGENCO
0.080
0.000
-
Closing of application for IPO : 2 Apr 2015
DGB
0.140
0.005
BJCORP
0.465
0.025
SCN
0.130
0.005
RM
Chg
7.100
0.590
13.020
0.340
RAPID
5.290
0.230
HEVEA
3.170
0.220
AEONCR
12.920
0.200
Top Loser
RM
Chg
KLK
22.420
(0.440)
BAT
67.800
(0.240)
HLFG
16.680
(0.220)
AMWAY
10.900
(0.200)
PANAMY
23.100
(0.200)
Top Gainer
TAHPS
TAKAFUL
MERCURY SECURITIES
SDN BHD (113193-W)
(A Participating Organisation of Bursa Malaysia Securities Berhad)
CONSENSUS TARGET PRICE
Userguide:
To complement the top down approach, Mercury Securities will be compiling the top three underpriced equities
of the respective sectors based on the consensus target price premium over the current price on a weekly basis.
Methodology:
These consensus target prices are sourced from Bloomberg and the equities are covered by at least 4 research
houses, excluding Mercury Securities. The purpose is to ensure the credibility, conformity and objectivity of the
consensus target prices are is maintained for the reader.
Sector
Finance
Property
Plantation
Company
Closing Price
Target Price
Premium
HONG LEONG FINANCIAL GROUP
16.80
19.35
15.2%
HONG LEONG BANK BERHAD
14.26
15.89
11.4%
RHB CAPITAL BHD
8.00
8.68
8.5%
NAIM HOLDINGS BERHAD
2.65
4.05
53.0%
IGB CORPORATION BHD
2.80
4.10
46.4%
TROPICANA CORP BHD
1.03
1.45
40.8%
SARAWAK OIL PALMS BERHAD
5.07
6.42
26.7%
FELDA GLOBAL VENTURES
2.12
2.48
16.8%
10.00
10.95
9.5%
MSM MALAYSIA HOLDINGS BHD
5.00
5.51
10.1%
TAN CHONG MOTOR HOLDINGS BHD
3.01
3.26
8.2%
PADINI HOLDINGS BERHAD
1.44
1.53
6.5%
COASTAL CONTRACTS BHD
2.90
4.13
42.4%
PRESS METAL BERHAD
3.30
4.64
40.5%
KNM GROUP BHD
0.70
0.98
39.5%
MALAYSIAN RESOURCES CORP BHD
1.20
1.88
56.3%
TRC SYNERGY BHD
0.40
0.56
38.8%
MUHIBBAH ENGINEERING (M) BHD
2.21
2.85
28.8%
MMC CORP BHD
2.43
3.39
39.7%
AIRASIA BHD
2.21
3.02
36.7%
DAYANG ENTERPRISE HLDGS BHD
2.37
3.19
34.7%
GENTING PLANTATIONS BHD
Consumer
Ind Prod
Construction
Trad&Serv
Source: Bloomberg as of 30th Mar 2015
MERCURY SECURITIES
SDN BHD (113193-W)
(A Participating Organisation of Bursa Malaysia Securities Berhad)
NEWS HEADLINES
Commodity, Currency and Economic News
Ringgit lowered against the US dollar as the greenback remained firm against major currencies. At
9.04 am, the local unit was quoted at 3.7000/7030 against the greenback compared with 3.6830/6870 at
5 pm on Friday. Meanwhile, the local note was also lower against other major currencies. It fell
against the Singapore dollar to 2.6944/6982 from Friday's 2.6844/6883 and depreciated against the yen
to 3.1056/1086 from 3.0830/0874 previously. The local unit weakened against the British pound to
5.5041/5101 from Friday's 5.4586/4663 and declined against the Euro to 4.0252/0289 from
3.9854/9901 previously. (Bernama)
Gold fell more than 1 percent on Monday, its biggest drop in more than three weeks, as the dollar
climbed on increasing prospects that the U.S. Federal Reserve may start raising interest rates this year.
Chairwoman Janet Yellen said late on Friday an increase in the Fed's benchmark rate "may well be
warranted later this year" given sustained improvement in U.S. economic conditions. Spot gold fell as
much as 1.4 percent to a one-week low of $1,182.05 an ounce, slightly cutting losses to trade down 1.1
percent at $1,198 by 2:33 p.m. U.S. gold futures for April delivery dropped 1.3 percent to settle at
$1,184.80 per ounce. (Reuters)
Malaysian CPO futures touched a near two-week low on Monday, before reversing losses to end
positive as traders positioned themselves ahead of export data due later this week. The benchmark June
contract on the Bursa Malaysia Derivatives ended 1 percent higher at 2,190 ringgit ($590) a tonne.
Prices earlier hit 2,143 ringgit, its lowest levels since March 18 before climbing as high as 2,196
ringgit. Total traded volume stood at 37,613 lots of 25 tonnes, just above the average 35,000 lots. "The
market is anticipating good exports tomorrow and this is the only bullish factor we have in the market
right now," said a trader with foreign commodities brokerage. (Reuters)
Oil prices slipped on Monday as officials from Iran and six world powers discussed a possible deal
over Tehran's nuclear programme that could bring an end to sanctions and allow an increase in Iranian
oil exports. The two sides have until the end of Tuesday to come up with an agreement at talks in
Lausanne, Switzerland. Officials close to the talks have said progress has been made and many
investors believe a deal is in the making. Few expect the talks to end without some sort of agreement.
Brent crude was down 5 cents at $56.36 a barrel by 1345 GMT. U.S. crude was down 10 cents at
$48.77. Oil markets are well supplied and recent figures show global production outstripping demand
by around 1.5 million barrels per day (bpd), filling oil inventories. "Further downward pressure may
come at any time from a nuclear agreement with Iran," said Michael Wittner, analyst at Societe
Generale. "If a framework agreement is reached, we would expect an immediate bearish knee-jerk
reaction in the markets, with oil prices quickly losing on the order of $5." (Reuters)
MERCURY SECURITIES
SDN BHD (113193-W)
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Global and Local Headlines
Astro Malaysia Holdings Bhd’s pre-tax profit for financial year ended Jan 31, 2015 (FY15) rose to
RM720.88 million from RM569.23 million in the previous year. Revenue grew to RM5.23 billion from
RM4.79 billion a year ago, following the expansion in its customer base and increase in average
revenue per user (ARPU) in sales of value-added products and services as well as cost control.
(Bernama)
Datasonic Group Bhd’s wholly-owned unit, Datasonic Technologies Sdn Bhd, has received a letter of
award from the Home Affairs Ministry to undertake maintenance services for personalisation process
at the National Registration Department worth RM32.56 million. Datasonic, in a filing to Bursa
Malaysia, said the contract was for a period of two years commencing May 1 until April 30, 2017.
“The contract is expected to contribute positively towards the future earnings and net assets per share
of Datasonic for the financial year ending March 31, 2016 and the financial years thereafter for the
duration of the contract,” it said. (Bernama)
Lay Hong Bhd has said it will reduce by half the number of shares it intends to place out to new
investors, from 30% of its outstanding shares to just 15%, following “feedback” from shareholders. QL
Resources Bhd, which owns 38.9% of Lay Hong, had said in February that the original proposal was a
“raw deal” for shareholders. Lay Hong said the new shares will increase its public shareholding spread.
In a filing with Bursa Malaysia yesterday, Lay Hong said the proposed private placement entailed the
issuance of up to 7.62 million placement shares, representing up to about 15% of the existing issued
and paid-up share capital of RM50.83mil as at March 23. (Star)
Seacera Group Bhd is expected to develop a township-concept project on a 202.34-hectare site in
Hulu Langat with a gross development value (GDV) of more than RM10bil. Group Managing Director
Zulkarnin Ariffin said the manufacturing company would develop the land either on its own or through
a partnership. Zulkarnin said details of the project would be made public once the company has a
concrete decision and as per restricted under the regulators' rule. On the EGM, he said Seacera
received the shareholders approval to acquire a 15.23-hectare land in Melaka from Sri Alai Sdn Bhd
for RM32.75mil. (Star)
Switzerland's Holcim said on Monday it had sold its 27.5% stake in Thailand's second-largest cement
company Siam City Cement, in deals worth 655 million Swiss francs (US$681mil). Zurich-based
Holcim, which plans to merge with France's Lafarge, said 24.9% of Siam City Cement was acquired by
an affiliate of Hong Kong-based conglomerate Jardine Matheson Holdings Ltd. The remaining 2.6%
was purchased by institutional investors, Holcim said in a statement. (Reuters)
MERCURY SECURITIES
SDN BHD (113193-W)
(A Participating Organisation of Bursa Malaysia Securities Berhad)
SECTORIAL RETURN
The chart below depicts the performance of the respective KLCI sectors over a five year period
including the current and forward P/E. The sector’s performance is ranked against each other based on
absolute returns for that particular year. The user can track the historical performance of respective
sectors and notice that the finance sector is the best performing sector over a five year period between
2010 and 2014 with a compound annual growth rate of 10.5%. The user will also be able to identify
sector value based on the current P/E and the corresponding 5 year high, low and average P/E. For
example, finance sector PE is currently at 12.50 times, which is trading marginally higher than 5 year
average P/E of 12.40 times, suggesting financials valuation is in line with the historical average P/E.
For a significant impact to reduce market noise, overview of sectorial performance will be updated on a
weekly basis.
Index
Return (%)
Valuation P/E
5-Yrs
2009
2010
2011
2012
2013
2014
KLCI
45.2
19.3
0.8
10.3
10.5
(5.7)
6.7
Trade / Services
36.5
18.8
0.8
7.4
16.5
(4.8)
Finance
62.8
25.4
(1.1)
12.1
10.4
Ind Prod
41.6
17.2
0.4
9.3
Consumer
32.0
21.0
7.6
Plantation
53.6
26.3
Property
51.6
Construction
Technology
(CAGR)
YTD
5 - Years
Current
1 Yr Forward
High
Low
Avg
3.0
19.1
14.5
16.5
16.8
16.6
7.4
4.7
21.7
5.0
18.6
18.9
17.9
(7.4)
7.3
3.1
14.0
9.9
12.4
12.5
12.4
15.9
(9.2)
6.2
6.6
33.5
12.9
20.1
36.8
17.4
9.9
11.0
(5.8)
8.4
7.5
23.1
12.8
17.3
20.8
16.2
1.6
1.9
7.6
(11.8)
4.4
0.0
42.4
19.2
15.6
16.6
20.7
30.6
(2.1)
5.4
22.7
(0.6)
10.5
2.5
15.1
4.0
8.7
9.8
11.4
36.6
27.1
(13.5)
(4.2)
17.4
0.4
4.4
7.3
28.9
5.3
17.1
18.1
13.6
33.1
20.2
(12.7)
43.5
1.9
(22.5)
3.5
27.0
523.8
13.4
81.5
23.7
15.3
Source: Bloomberg as at 30th Mar 2015
MERCURY SECURITIES
SDN BHD (113193-W)
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Disclaimer
All information, views and advice are given in good faith but without legal responsibility. Mercury Securities Sdn. Bhd. (113193-W)
or companies or individuals connected with it may have used research material before publication and may have positions in or may
be materially interested in any stocks in the markets mentioned. Strictly for internal circulation only.
For any enquiries, please contact us at:
L-7-2, No.2, Jalan Solaris
Solaris Mont Kiara
50480, Kuala Lumpur
Tel: 603-6203 7227
or E-mail: [email protected]
• PENANG
• BUTTERWORTH
• KUALA LUMPUR
• MALACCA
• JOHOR BAHRU