Thursday, September 23, 2021

FBMKLCI: 1,529.02

THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY*

Daily Brief
Market View, News in Brief: Corporate, Economy, and Share Buybacks
Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my

M a r k e t V i e w Range Bound Pending Further Market Stability

Blue chips traded slightly lower on Wednesday, with banks leading falls while awaiting details
on interest-free loan moratoriums and profit windfall taxes, and amid caution over potential
fallout from China’s Evergrande property group. The FBM KLCI slipped 1.42 points to close
at 1,529.02, off an early low of 1,520.71 and high of 1,529.79, but gainers led losers 584 to
382 on slower trade totaling 4.12bn shares worth RM3.16bn.

Supports at 1,500/1,470; Resistance at 1,550/1,605

The local market should extend range bound trade pending fresh domestic catalysts, and
further signs of stability on regional markets before investor commitments can increase.
Immediate index support remains at 1,500, with 1,470 and 1,452, the 50% Fibonacci
Retracement (FR) matching the Nov 2020 low, as key supports to watch. Immediate resistance
will be at 1,550, with significant resistance from the recent high of 1,605, while 1,620 and
1,640 will be tougher upside hurdles.

Bargain DNEX & Unisem

DNex shares remain in base building mode pending decisive breakout above the 76.4%FR
(85sen) to boost upside momentum towards 91sen/RM1.00, with tougher hurdle seen from
the 16/3/21 peak (RM1.05). Key chart supports from the 61.8%FR (72sen) and 200-day ma
(64sen) cushions downside risk. Unisem will need convincing breakout above the 138.2%FP
(RM9.11) to enhance upward momentum towards the 150%FP (RM9.75), 161.8%FP
(RM10.40) and 176.4%FP (RM11.20) going forward, while uptrend support is from the 200-
day ma (RM7.66).

China Markets Cut Earlier Losses Amid Evergrande Crisis

Markets in mainland China fell more than 1% on Wednesday’s open before closing mixed amid
the ongoing Evergrande crisis, as markets reopened for trade after a two-day holiday. With
global markets selling off earlier this week, investors kept a close watch on the China markets
for any fallout surrounding the embattled developer. The Shanghai composite shed all earlier
losses and closed 0.4% higher at 3,628.49 while the Shenzhen component slipped 0.573% to
about 14,277.08. Markets in Hong Kong were closed for a holiday. On Monday, the Hang Seng
had plunged more than 3% before paring some losses on Tuesday.

Investor sentiment may have been soothed on Wednesday after Evergrande unit Hengda
announced it will make a coupon payment on its domestic bonds on Thursday. Still, questions
remain over whether the interest on Evergrande’s offshore U.S.-dollar denominated bond —
also due Thursday — will be made. The People’s Bank of China on Wednesday injected
substantially more liquidity into the markets through “reverse repurchase agreements,” or
buying short-term bonds from some commercial lenders so banks have more cash on hand,
data from the central bank showed. Elsewhere in Asia, the Nikkei 225 in Japan slipped 0.67%
to close at 29,639.40, while the Taiex in Taiwan dropped 2.03% on the day to 16,925.82. In
Australia, the S&P/ASX 200 edged 0.32% higher to close at 7,296.90. South Korea was closed
for a holiday.

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 23-Sep-21

Wall Street Rebound After Fed Signal No Rush to Hike Rates

U.S. stocks rallied overnight after the Federal Reserve indicated it doesn’t see an imminent
rollback of the monetary stimulus that has been supporting the economy throughout the
pandemic. The Dow Jones Industrial Average advanced 338.48 points, or 1%, to 34,258.32,
snapping a four-day losing streak. The S&P 500 added nearly 1% to 4,395.64 while the Nasdaq
Composite gained 1% to 14,896.85. The Fed did not give a specific timeline on when it may
begin moderating its purchases. The central bank has been buying USD120 billion a month of
Treasuries and mortgage-backed securities since the start of the Covid crisis. The Federal
Open Market Committee voted unanimously to keep short-term rates anchored near zero.

Stocks came off their highs after Fed Chair Powell said the central bank’s further progress
test has been met on its inflation mandate and “many” members believe that test has been
met on the employment mandate as well. This indicates the Fed is just about ready to begin
removing stimulus. However, markets still ended the day much higher as the Fed appeared in
no rush to hike rates. The Fed is split on the timing of the first interest rate hike. Wednesday’s
so-called dot plot of projections showed nine of the 18 FOMC members expect a rate
increase in 2022. That’s up from seven in June’s Fed projections.

(TH E RE M AINI N G O F T H IS P A GE IS IN TE N TI O NA L L Y L E F T BL AN K )

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N e w s I n B r i e f Corporate
IOI Properties Group Bhd’s wholly-owned subsidiary Boulevard View Pte Ltd submitted
a SGD1.5bn (approximately RM4.7bn) bid to buy an estimated 0.78 hectares (7,817.6 square
metres) leasehold land known as the White site at Singapore’s Marina View enclave under
the country's Urban Redevelopment Authority's (URA) invitation to tender which saw
Boulevard View becoming the sole bidder. (Bursa Malaysia / The Edge)

Comment: The 99-year leasehold mixed-use site, near the upcoming Shenton Way MRT Station,
can generate a maximum gross floor area of 1.09mn sq ft. Of this, at least 548,959 sq ft has to be
for residential use and at least 279,861 sq ft for hotel use. At SGD1,379 per square foot per plot
ratio, the bid price for Marina View is lower than the most recent GLS residential sites sold in the
CBD, according to CBRE. Pending the official award of the site, we maintain our earnings forecasts
and TP of RM1.82/share, based on 0.5x CY22 BPS. Reiterate Buy.

CIMB Group Holdings Bhd has committed to a series of strengthened sustainability

commitments, including the mobilisation of RM30bn towards sustainable finance, as part of
its continued ambition to be an ASEAN sustainability leader by 2024. CIMB said it has set a
higher sustainability finance target guided by the group's Green, Social, Sustainable Impact
Products and Services framework. (Bursa Malaysia / The Edge)

Bursa Malaysia Bhd aims to become carbon neutral by 2022 and achieve net zero
emissions by 2050 across its entire operations, in line with the global drive for
decarbonisation. Under the new set of commitments, Bursa said it would systematically
manage its carbon footprint across the exchange's entire business activities, while reducing
emissions in line with a net zero future. (Bursa Malaysia / NST Business)

TAFI Industries Bhd (Not Rated), the furniture maker which has diversified into
property development, has entered into five joint-venture agreements to develop mixed
housing projects in Pahang with an estimated total gross development value of RM621.5mn.
For all five projects, TAFI's wholly-owned subsidiary Gerak Mahir Sdn Bhd will be bearing
the cost of the development, while the joint venture partners will be providing the project
land. (Bursa Malaysia / The Edge)

Vizione Holdings Bhd (Not Rated) has entered into an agreement to develop 2,500
affordable apartment units with related infrastructure in Putrajaya. The agreement for the
RM500mn gross development value project was inked between Vizione's wholly-owned unit
Vizione Builder Sdn Bhd and Pan Sejati Development (M) Sdn Bhd. (Bursa Malaysia / The Edge)

Sarawak Consolidated Industries Bhd (SCIB) (Not Rated) announced that its wholly-
owned subsidiary SCIB Properties Sdn Bhd has been awarded a RM137mn contract to build
housing for civil servants. SCIB said the developer of the project in Muallim, Perak — Awana
JV Suria Saga Sdn Bhd — has nullified Puncak Gemilang Melati Sdn Bhd as the main contractor
and appointed SCIB Properties to take over as the main contractor. (Bursa Malaysia / The
Edge)

Sedania Innovator Bhd (Not Rated) said its 51%-owned health tech subsidiary Offspring
Inc Sdn Bhd is expanding into the Middle East, starting with Bahrain. Offspring focuses on
early childcare solutions, offering, among others, products such as baby diapers, wet wipes,
skincare and home care products that are made of naturally derived, organic, sustainable and
biodegradable materials. (Bursa Malaysia / The Edge)

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 23-Sep-21

Solarvest Holdings Bhd (Not Rated) is planning further diversification in the solar
energy business as the clean energy specialist seeks to grow in the midst of prolonged
uncertainty. Its group chief executive officer Davis Chong said this includes moving more
aggressively into solar energy investments that Solarvest is working on as well as leveraging
Powervest, its all-new solar financing programme, which will strengthen its position in the
solar energy market. (Bursa Malaysia / The Edge)

Rhone Ma Holdings Bhd (Not Rated), via its subsidiary A2 Fresh Sdn Bhd (A2FSB), has
entered into a JV agreement with Kulim (Malaysia) Bhd to develop, operate and manage a
potential dairy project. Rhone Ma said the initial investment required for the project will be
up to RM41.4mn, which will be funded through equity in the form of subscription of shares
by the shareholders in proportion to their shareholding ratio in the special purpose vehicle
(SPV) company. Based on the agreement, Kulim will be the largest shareholder in the SPV
with a 65% stake while the remaining 35% will be held by A2FSB. (Bursa Malaysia / The Edge)

Heitech Padu Bhd (Not Rated) has bagged a RM36.3mn contract to provide maintenance
and technical support for ICT infrastructure and mySIKAP system at all Road Transport
Department offices. The group previously announced a two-year contract for the mySIKAP
system (Driver and Vehicle Information System) in November 2016, amounting to
RM79.8mn and effective until December 2018. (Bursa Malaysia / The Edge)

Scomi Group Bhd (Not Rated) said its wholly-owned Scomi Capital Sdn Bhd has entered
into a memorandum of understanding with ODESI eCOB Sdn Bhd to explore opportunities
to develop an urban solar programme to sell and purchase electricity generated from solar
photovoltaic systems. It said the sale and purchase of electricity will be done under a power
purchase agreement or supply agreement with renewable energy on a zero-capital
expenditure model, meaning that the cost of generation will be borne by the seller of
electricity with no cost to the purchaser. (Bursa Malaysia / The Edge)

Serba Dinamik Group Bhd, a provider of internet access through local satellite
technology, has installed the Proof of Concept for Very Small Aperture Terminal satellite
internet access in Kampung Betutai, Tuaran, Sabah to reduce the rural digital divide. Serba
Dinamik said the installation was a collaboration project with the Sabah Ministry of Science,
Technology and Innovation. (Bursa Malaysia / The Edge)

LFE Corporation Bhd (Not Rated) has proposed to diversify into property development
by entering into a joint venture (JV) with Aziho Trading Sdn Bhd to develop a housing project
in Kuala Muda, Kedah. The electrical and mechanical engineering service provider said its
60%-owned subsidiary, LFE Development Sdn Bhd, tinked an unincorporated JV development
agreement with Aziho Trading, the landowner, to develop Taman Residensi Mesra Phase 2
on 8.2 hectares with a gross development value of RM111.0mn. (Bursa Malaysia / The Edge)

Berjaya Land Bhd's (Not Rated) net loss in the fourth quarter ended June 30, 2021
(4QFY21) widened to RM126.3mn from a net loss of RM108.5mn as the lockdown
restrictions impacted its business operation. For the full financial year (FY21), Berjaya Land's
net loss widened further to RM250.6mn from RM36.8mn in FY20. (Bursa Malaysia / The Edge)

Higher sales lifted crane operator Favelle Favco Bhd's (Not Rated) second quarter net
profit by 79.0% to RM13.6mn from RM7.6mn a year earlier. For the six-month period ended
June 30, the group’s net profit rose 30.3% to RM25.4mn from RM19.5mn in the first half of
last year, (Bursa Malaysia / The Edge)

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Glomac Bhd's earnings for the first quarter ended July 31, 2021 more than halved as the
property developer was impacted by the very difficult operating environment arising from
the implementation of Movement Control Order 3.0. Net profit fell 60.7% to RM1.7mn from
RM4.4mn a year ago, while revenue slipped 38.5% to RM28.8mn from RM46.9mn. (Bursa
Malaysia / The Edge)

Jaya Tiasa Holdings Bhd (Not Rated) ended its three-year loss-making streak with a net
profit of RM31.4mn for FY21, helped by higher average selling prices at its plantation segment
and as its timber division narrowed losses. The group had reported a net loss of RM72.1mn
for FY20. For the 4QFY21, Jaya Tiasa reported a net profit of RM18.8mn, against a net loss
of RM34.7mn in 4QFY20. (Bursa Malaysia / The Edge)

Opcom Holdings Bhd (Not Rated) returned to the black in the first quarter ended June
30, 2021, registering a net profit of RM2.6mn against a net loss of RM752,000 a year before,
on the back of higher manufacturing segment performance as well as engineering services'
contribution. (Bursa Malaysia / The Edge)

TRC Synergy Bhd's (Not Rated) net profit dropped 69% to RM3.5mn in the second
quarter ended June 30, 2021 from RM11.2mn in the same quarter last year. TRC said this
was due to marginally lower gross profit, unrealised foreign currency exchange loss and
higher administrative expenses. For the six-month period, its net profit eased 15.6% to
RM9.1mn from RM10.8mn. (Bursa Malaysia / NST Business)

(TH E RE M AINI N G O F T H IS P A GE IS IN TE N TI O NA L L Y L E F T BL AN K )

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N e w s I n B r i e f Economy
Malaysi a Interstate Travel, Tourism Activities to Resume when 90% of Adults Fully
Vaccinated
Interstate travel and tourism activities will be allowed to resume when the vaccination
rate for adults reaches 90%, says Prime Minister Datuk Seri Ismail Sabri Yaakob. "Tourism
centres, areas and islands will be allowed to operate again and interstate travel permitted on
the condition that 90% of the adults in the country have been vaccinated, based on data and
analysis by the Health Ministry," he said in a statement. The statement came shortly after
the decision was made at a Special Committee on Pandemic Management meeting. Ismail
Yaakob said businesses will be allowed to operate at 100% capacity provided that the
employer and all employees are fully vaccinated. He also said foreigners arriving at the
international gateway will have to bear the cost of the RT-PCR test for Covid-19 while
it's free for Malaysian citizens.

"The government hopes that the easing of these restrictions will be fully utilised by the people
with full discipline and a sense of responsibility. Adhere to the SOP, wear a face mask, practise
physical distancing, and always maintain personal hygiene and safety,” he added. On Tuesday,
the Prime Minister announced that 80% of the country's adult population had been fully
vaccinated. (The Star)

Negri Sembilan, Pahang and Johor Will Move on to the Next Phases of the
NRP
Negri Sembilan would be entering into Phase Four of the National Recovery Plan (NRP)
effective Friday, says Datuk Seri Ismail Sabri Yaakob. The Prime Minister said that on the
same day, Pahang would be moved into Phase Three while Johor would enter Phase
Two. Ismail Sabri said the Special Committee on Pandemic Management made the
decision to move the states into the next phases of the NRP for each of the states on
Wednesday. “The transition of this phase is in accordance with the guidelines set by the
National Recovery Plan taking into consideration the hospitalisations for symptomatic cases, the
usage of ICU beds as well as the percentage of those who are fully vaccinated. This decision is
also made based on the current risk assessment made by the Health Ministry and the National
Security Council (NSC),” he said in a statement. He added that the standard operating
procedures (SOPs) for states entering Phase Two, Three and Four are the same as the
SOPs before. (The Star)

Malaysia Remains Competitive in Attracting Investments Despite

Challenging Pandemic Situation
Malaysia remains competitive in attracting investments into the country despite the
challenging Covid-19 pandemic situation. Senior Minister cum International Trade and
Industry Minister Datuk Seri Mohamed Azmin Ali said Malaysia's strategic position,
conducive business environment and ecosystem, as well as strategic investment-related
initiatives, are expected to continue to make Malaysia a preferred destination in the
region. In winding up the debate on the Yang di-Pertuan Agong’s royal address in the
Dewan Rakyat, he said the Ministry of International Trade and Industry (MITI) will
continue to engage with foreign embassies, foreign chambers of commerce and related
parties to strengthen trade and investment relations with foreign investors.

Nevertheless, he said the government acknowledges that the foreign direct investment
(FDI) outlook remains challenging and competitive as reported by the Department of
Statistics Malaysia (DOSM) and the United Nations Conference on Trade and
Development (UNCTAD). “The government has not underestimated these reports and has
taken aggressive and continuous measures, not just to control the decline in FDI, but also to

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reinvigorate foreign investments to help in the nation’s economic recovery,” he said. Moving
forward, Mohamed Azmin said the government will continue to adopt three main
approaches in revitalising the nation’s economy, including making the National Covid-19
Immunisation Programme (PICK) a catalyst for the safe and systematic reopening of the
economy. (Bernama)

Government Mulls Capital Gains Tax on Shares, One-Off Higher Tax Rate
for Businesses with Windfall Profits
The government is contemplating and studying the implementation of a one-off higher
tax rate to be imposed on companies that have generated extraordinary profits during
the Covid-19 pandemic. Deputy Finance Minister II Yamani Hafez Musa, who was
speaking in Parliament, added that Putrajaya is also studying the implementation of a
capital gains tax, which was proposed by several Members of Parliament (MPs) during
the latest parliamentary sitting as part of efforts to replenish government funds spent on
combating the Covid-19 pandemic. “The government is looking at a few ways in which it can
increase its revenue, including implementing the taxing of capital gains on shares and also
imposing a one-off higher tax rate on companies that have obtained extraordinary profits during
the pandemic,” he said during his winding-up speech on the King's address. He said that
the extra revenue accrued by the taxes would be chanelled towards recovery
programmes and activities for selected target groups.

According to Yamani Hafez, the government will obtain the views of stakeholders on the
windfall tax or levy on extraordinary profits made by businesses first. “The government
needs to take into account the views and feedback of affected stakeholders to ascertain
the effects of imposing these taxes, so that it does not affect Malaysia’s economic standing
and competitiveness, specifically in attracting foreign investments,” he said. (The Edge)

RON95 and Diesel Prices Unchanged, RON97 Up Two Sen

The retail prices of RON95 petrol and diesel remained unchanged at RM2.05 and RM2.15
per litre respectively until Sept 29, the Ministry of Finance (MoF) said. In a statement, it
said, however, the retail price of RON97 petrol increased by two sen per litre to RM2.75
until Sept 29. MoF said the prices were set based on the weekly retail prices of petroleum
products using the Automatic Pricing Mechanism (APM). To protect consumers from
the effects of actual increase in oil prices on the global market, the government has
maintained the retail price of RON95 at the ceiling price of RM2.05 per litre and diesel
at RM2.15 per litre although the actual market prices for both products have exceeded
the set ceiling prices. MoF said the government would continue to monitor the impact
of changes in world crude oil prices and take suitable measures to ensure the welfare
and well-being of the people continue to be protected. (The Edge, MoF)

MOF to Propose Raising Covid-19 Fund Ceiling to RM110bn

The Ministry of Finance (MoF) will propose raising the ceiling limit of the Covid-19 Fund
from RM65bn to RM110bn in the current parliamentary session, said Deputy Finance
Minister II Yamani Hafez Musa. He said the increase is needed to cover the total payment
commitment which has now reached RM91.8bn. "There are still several initiatives that are
under implementation and these will end in December 2021, such as the Covid-19 Special
Assistance, Prihatin 4.0 Special Grant, job loss assistance as well as special electricity bill
discounts. There are also several initiatives where implementations are extended until next year
including the Wage Subsidy Programme, Job Retention Programme, Recruitment Incentive
Programme, training assistance, skills upgrading programme, Prihatin Network Programme and
other Covid-19 expenditures,” he said in his wrap-up speech during the debate on the Royal
Address at the Dewan Rakyat.

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Yamani said there are also delays in other small-scale programmes as a result of the
Movement Control Order, which is expected to extend into 2022. Touching on the
economic stimulus packages amounting to RM530bn, he explained that the amount
includes fiscal and non-fiscal injections. “Of the RM91.8bn direct fiscal injection until
September 2021, a total of RM60bn has been spent or 92% of the total RM65bn approved in
parliament through amendments to the Temporary Measures For Reducing The Impact Of
Coronavirus Disease 2019 (Covid-19) Act 2020," he said. (The Edge, Bernama)

Current Minimum Wage Can be Revised in Stages — Wahid Omar

The country’s current monthly minimum wage of RM1,200 (US$283) can be revised
upwards as the government has the capacity to accommodate the increment, said former
Minister in the Prime Minister's Department Tan Sri Abdul Wahid Omar. Abdul Wahid,
who is currently the chairman of Bursa Malaysia Bhd, said this can be done gradually over
a period of time to give businesses enough time to plan accordingly. This would also
encourage them to enhance automation and improve their processes, subsequently
creating more high-value jobs for local workers, he said. “It is important for all employers
to ensure that their employees are sufficiently remunerated and are provided with good facilities,
as well as a safe and conducive working environment. I think there is actually room for wages
to be increased over time, but what is important for the government is to set a long-term or
medium-term target,” he told a virtual press conference on the sidelines of the virtual
2021 APAC Summit. The minimum wage was last revised on Feb 1, 2020, with a RM100
hike. In the meantime, Abdul Wahid said he hoped that businesses would take the
initiative to offer fair remuneration for their workers instead of waiting for the
government to announce a new policy on the minimum wage. (The Edge, Bernama)

Asia ADB Raises Developing Asia 2022 Growth Outlook

The Asian Development Bank (ADB) raised its economic growth projections for the
next year but signaled divergence in the recovery paths among regional economies. In
its latest Asian Development Outlook 2021 Update, the ADB said developing Asia will
expand 5.4% next year, instead of 5.3% estimated previously. Meanwhile, the outlook for
2021 was downgraded to 7.1% from 7.3%. While growth forecasts are raised for East
Asia and Central Asia, downward revisions for the rest of the region weighed on the
outlook. The Covid-19 continues to besiege developing Asia, but vaccines are changing
the nature of the pandemic. Uneven vaccination coverage is furthering regional
divergence. The agency cited the emergence of new variants, slower-than-expected
vaccine rollouts, and waning vaccine effectiveness as the main risks to the economic
outlook. The ADB cautioned that geopolitical tensions, financial turmoil, and disruptions
to global supply chains may also undermine the region's growth prospects.

The Manila-based lender said growth forecasts have been revised up for those economies
that have managed to contain Covid-19. The rapid economic recovery will continue
across East Asia. Growth in China will remain strong, despite a protracted recovery in
household consumption, the lender said. The GDP growth projection remained
unchanged at 8.1% in 2021 and 5.5% in 2022. The growth forecast for India in fiscal year
ending September 2021 was revised down, as May's spike in Covid-19 dented the
recovery. The economy is expected to rebound strongly in the remaining three quarters,
and grow 10.0% in the full fiscal year before moderating to 7.5% in FY2022. (RTT, ADB)

BOJ More Downbeat on Exports, Output Even as Recovery Seen on Track

The Bank of Japan (BOJ) offered a bleaker view on exports and output as Asian factory
shutdowns caused supply bottlenecks, but maintained its optimism that robust global
growth will keep the economic recovery on track. BOJ Governor Haruhiko Kuroda also
brushed aside fears that the debt problems of China Evergrande Group could disrupt

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the global financial system, saying it was still "an individual company's problem and that of
China's real estate sector." "We need to keep an eye out on whether this affects global markets.
But for now, I don't see this turning into a global, bigger problem," Kuroda told a briefing,
when asked about market jitters over the fate of Evergrande. As widely expected, the
BOJ maintained its short-term interest rate target at -0.1% and that for 10-year bond
yields around 0% at its two-day rate review that ended on Wednesday. The BOJ also
decided on the details of its green finance scheme, which will begin disbursing loans in
December.

While the central bank stuck to its view the economy is picking up as a trend, it offered
a bleaker view on exports and output as Asian factory shutdowns caused by the
coronavirus pandemic forced some manufacturers to slash production. "Exports and
factory output continue to increase, although they are partly affected by supply constraints," the
BOJ said in a statement. That was a gloomier view than in July, when it said exports and
output "continued to increase steadily." (Reuters)

China Leaves Loan Prime Rates Unchanged

China maintained its benchmark loan prime rates for the 17 consecutive month, as widely
expected. The one-year loan prime rate was kept unchanged at 3.85% and the five-year
LPR at 4.65%. The one-year and five-year loan prime rates were last lowered in April
2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10
basis points in April 2020. Markets expected LPR rates to remain on hold as the People's
Bank of China had kept the rate on its medium-term lending facility unchanged early this
month.

The loan prime rate is fixed monthly based on the submission of 18 banks, though Beijing
has influence over the rate-setting. This lending rate replaced the central bank's
traditional benchmark lending rate in August 2019. With the economy losing steam and
concerns around the property sector growing, policy rate cuts by the PBoC could come
as soon as next month. The economist is expecting cuts to the PBoC's policy rates,
including the LPR starting next quarter. (RTT)

Australia Borders to be Open by Christmas, Tourism Minister Says

Australia plans to open its international border by Christmas at the latest, unwinding one
of the world’s strictest controls on overseas travel since the pandemic began. Australians
will be able to travel abroad, with no restrictions on the destination, once the vaccination
rate in their respective home state hits 80%, Tourism Minister Dan Tehan said at a
National Press Club of Australia event. Australia’s borders have been mostly shut to
non-citizens and non-residents since March 2020. “People will be able to freely travel outside
Australia with no restrictions” under the national plan governing the country’s emergence
from Covid-19, Tehan said. Australians would still be subject to rules governing the
countries they visit. The government is exploring opening travel bubbles with several
countries to reduce quarantine time, and hopes home quarantine will be operational
before Christmas, Tehan said. (Bloomberg)

Taiwan Applies to Join Pacific Trade Deal Just Days After China
Taiwan has submitted an application to join a Pacific trade deal, just days after China sent
its own request to become a member of the agreement which was once pushed by the
US as a way to isolate Beijing and solidify American dominance in the region. The
Taiwanese application to join the Comprehensive and Progressive Agreement for Trans-
Pacific Partnership was sent to New Zealand, with a public announcement scheduled for
as soon as Thursday morning, according to a person familiar with the situation. New
Zealand is the depositary nation for the deal and will forward it to the other 10 nations.

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New Zealand’s foreign affairs ministry didn’t reply to an email requesting comment sent
after business hours. Taiwan’s cabinet spokesman Lo Ping-cheng wasn’t available to
comment.

Taiwan already has free-trade deals with two of the members — New Zealand and
Singapore — and has been working toward joining the trade agreement for years, with
President Tsai Ing-wen making it a key goal for her final term in office. However, China
opposes any move to deal openly with Taiwan, which will make the discussions between
Beijing, Taipei and the 11 member nations difficult. Tsai’s government, which views
Taiwan as an already de facto sovereign nation, has made building out support from
democratic allies in the region a crucial part of its efforts to counter rising pressure from
Beijing. That includes closer ties with CPTPP members such as Australia, which is in the
midst of a trade dispute with China, and Japan, which is a key trading partner and the
largest economy in CPTPP. Lawmakers from Japan’s ruling party last month backed
Taiwan’s entry into the deal. (The Edge, Bloomberg)

Thailand Delays Plan to Reopen Cities to Tourists until November

Thailand has pushed back plans to reopen Bangkok and some other major cities to
foreign arrivals until November, due to vaccination rates falling short of targets, a senior
official said. Officials earlier this month said they planned to welcome vaccinated tourists
without quarantine to major cities like Bangkok, Hua Hin, Pattaya, and Chiang Mai in
October to revive the country's crucial tourism sector. "Cities we've targeted have not
reached 70% vaccination rates and so we have to push out the date to November," Tourism
Authority of Thailand governor Yuthasak Supasorn told Reuters. Despite being a
production hub for the AstraZeneca vaccine, Thailand's vaccine roll-out has struggled to
keep pace, though Prime Minister Prayuth Chan-ocha pledged on Wednesday to speed
up inoculations. So far, 44% of residents in Bangkok have received two doses,
government data showed. Overall, Thailand has vaccinated 22% of the estimated 72mn
people living in the country. Up to now, the tourism scheme has only been launched on
the islands of Samui and Phuket. (The Edge, Reuters)

Thailand to Accelerate Vaccinations, Stimulus Measures — PM

Thailand will speed up vaccinations and introduce urgent stimulus measures to mitigate
the impact of its most severe coronavirus outbreak, its prime minister said. Thailand has
reported more than 1.5mn infections and 15,000 deaths, about 99% of those since April
this year, after a year of successful containment during which its key tourism sector
collapsed. The government expects the situation to normalise quickly, Prayuth Chan-
ocha told a news conference hosted by the state planning agency. "The government will
make full efforts to resolve the crisis so that people can return to normal life as soon as possible,"
he said. So far, only 22% of the estimated 72mn people living in Thailand have been fully
vaccinated. Authorities want a higher inoculation rate before reopening fully to tourists.
The government has introduced a series of measures to cope with the pandemic, with
THB1.5tn (US$45bn) in borrowing, including THB500bn approved this year. Earlier this
week, it raised the public debt ceiling for more borrowing if needed. Thailand needs a
further one trillion baht to support the economy, the central bank's governor said last
month. The planning agency forecast the economy will grow 0.7% to 1.2% this year after
a 6.1% contraction last year. (The Edge, Reuters)

Indonesia to Use 'Existing Laws' as Palm Oil Moratorium Expires

Indonesia will use existing laws in a jobs creation bill passed last year to deal with issues
around sustainable palm oil production, a senior official said, after a moratorium on new
plantation permits recently ended. The Southeast Asian country, the world's top palm
oil producer, launched the moratorium in September 2018 to try to stop deforestation

Page 10 of 13
 23-Sep-21

and improve governance in the industry, while seeking to boost output from existing
cultivated areas. The moratorium ended on Sept 19 with no indication of an extension,
raising concerns by environmentalists who said that Indonesia is at risk of losing further
large tracts of forest to plantation expansion. "Let's just run it according to the existing
regulations," Indonesia's deputy minister of food and agriculture, Musdhalifah Machmud,
told a virtual conference, adding authorities had identified problems with the moratorium
that needed to be addressed.

An issue that had cropped up was that some plantations which existed even before the
moratorium continued to operate without a permit because they were located within a
designated forest area. "We haven't been able to overcome all of these conditions... let's
propose again what regulations might be able to overcome further problems," she said. The
Indonesian government passed the so-called jobs creation "omnibus" law last year which
revised over 70 existing laws, in an attempt to cut red tape, spur investment, and boost
labour market competitiveness. (The Edge, Reuters)

United St ates Powell Says Fed Taper Could Start ‘Soon’ and End Around Mid-2022
Federal Reserve Chair Jerome Powell said the U.S. central bank could begin scaling back
asset purchases in November and complete the process by mid-2022, after officials
revealed a growing inclination to raise interest rates next year. Powell, explaining the
U.S. central bank’s first steps toward withdrawing emergency pandemic support for the
economy, told reporters Wednesday that tapering “could come as soon as the next
meeting.” That refers to the policy gathering on Nov. 2-3, though he left the door open
to waiting longer if needed and stressed that tapering was not meant to start a
countdown to liftoff from zero interest rates. “The timing and pace of the coming reduction
in asset purchases will not be intended to carry a direct signal regarding the timing of interest-
rate liftoff,” he said following the completion of the two-day gathering of the Federal
Open Market Committee. Powell said he didn’t expect the Fed to begin rate increases
until after completing the taper process, which would wrap up “sometime around the
middle of next year.”

In addition to signaling a scale back in upcoming bond buying, officials also published
updated quarterly projections which showed officials are now evenly split on whether
or not it will be appropriate to begin raising the federal funds rate as soon as next year,
according to the median estimate of FOMC participants. In June, the median projection
indicated no rate increases until 2023. The projections are not a policy commitment and
reflect the personal views of policy makers, some of whom who may no longer be serving
at the Fed next year. Biden is expected to fill an open slot on the seven-seat Board in
Washington as well as name two new vice chairs when the terms of the current
incumbents -- Richard Clarida and Randal Quarles -- expire in coming months.

The FOMC decided to maintain the target range for its benchmark policy rate at zero
to 0.25%, and continue purchases of Treasuries and mortgage-backed securities at a pace
of $120bn per month. The vote was unanimous. Projections for 2024 were also
published for the first time, with the median suggesting a federal funds rate of 1.8% by
the end of that year. The median for 2023 rose to 1%, from 0.6% in the June projection.

Other Forecast Takeaways:

• FOMC median projection for 2022 inflation rose to 2.2% from 2.1% in June; held
the 2023 forecast at 2.2%;
• Unemployment 3.8% 2022, 3.5% 2023; no change from June forecast;
• GDP growth seen at 3.8% in 2022, 2.5% in 2023, both higher than the prior
projections. (Bloomberg)

Page 11 of 13
 23-Sep-21

Hot U.S. Housing Market Cooled in August

The turbocharged housing market started to slow in August, as buyers took a step back
from what has been a competitive and expensive time to buy a home. Existing-home
sales slipped 2% in August from the prior month to a seasonally adjusted annual rate of
5.88mn, the National Association of Realtors (NAR) said. August sales fell 1.5% from a
year earlier. Economists surveyed by The Wall Street Journal expected a 2% monthly
decline in sales of previously owned homes, which make up most of the housing market.
Though prices remain near record highs, the pace of price growth is slowing. The median
existing-home price rose 14.9% in August from a year earlier, NAR said, to $356,700.
That is down from a nearly 18% increase the prior month. Many homes are still selling
above listing price and receiving multiple offers. The typical home sold in August was on
the market for 17 days, unchanged from the prior month, NAR said. But the share of
home listings with a price cut rose for the fourth straight month, to 12.3% in August,
according to Zillow Group Inc. Home-price growth slowed in August compared with
July in 43 of the country’s 50 biggest metro areas, Zillow said. (WSJ)

Eurozone Germany's Ifo Institute Lifts 2022 Growth Outlook

The German economy is projected to grow faster than previously estimated next year
but trimmed its outlook for 2021 citing the impact of supply-side bottleneck on the
manufacturing sector. In its Autumn forecast, the think tank lifted its growth outlook for
2022 to 5.1% from 4.3%. The faster growth is largely due to the low level of production
of goods and services in 2021. In the course of 2022, the momentum of the overall
economic recovery will decrease, ifo said. The outlook for 2021 was downgraded to
2.5% from 3.3% as supply bottlenecks in manufacturing slowed overall recovery. Value
added in manufacturing is currently shrinking, while contact-intensive service industries
recovered strongly. The economy is divided, Ifo chief economist Timo Wollmershaeuser
said.

In 2023, the German economy will then expand again at normal rates, the think tank
added. According to ifo, the inflation rate is likely to rise further to around 4.5% by the
end of the year. The inflation rate should average 3.0% in 2021, following an average of
only 0.5% in the crisis year 2020. The forecast for this year was raised from 2.6%. In the
next two years, the upward trend in prices will then slow from an annual average of 2.3%
to 1.6%. Regarding the labor market, the institute said short-time work will fall back to
its pre-crisis level in the coming year, while unemployment is likely to be even higher,
with an annual average of 2.35mn people. The jobless rate is forecast to fall to 5.1% in
2022 from 5.7% in 2021. (RTT)

(TH E RE M AINI N G O F T H IS P A GE IS IN TE N TI O NA L L Y L E F T BL AN K )

Page 12 of 13
 23-Sep-21

N e w s I n B r i e f Share Buy-Back

Share Buy-Back: 22 September 2021

Total Treasury
Company Bought Back Price (RM) Hi/Lo (RM)
Shares
AMBANK 230,000 3.21/3.20 3.24/3.20 1,273,450
DUTALND 10,000 0.38 0.385/0.38 14,081,900
FAVCO 1,060,000 2.20 2.20/2.19 1,070,000
GDEX 525,800 0.30/0.295 0.30/0.295 47,061,800
HEXTAR 3,205,300 1.28/1.27 1.29/1.26 8,188,000
IGBB 25,000 1.89 1.90/1.89 9,608,417
IOICORP 1,300,000 3.75/3.69 3.75/3.68 57,161,400
KENANGA 500,000 1.28/1.26 1.28/1.26 1,810,700
KFIMA 1,000 1.94 1.97/1.93 5,382,100
MITRA 9,300 0.25 0.25 14,364,049
RANHILL 200,000 0.70 0.70/0.685 9,912,763
RUBEREX 6,800,000 0.62/0.60 0.62/0.59 21,241,600
Source: Bursa Malaysia

(TH E RE M AINI N G O F T H IS P A GE IS IN TE N TI O NA L L Y L E F T BL AN K )

Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without
notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document.
We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.

Kaladher Govindan – Head of Research

TA SECURITIES HOLDINGS BERHAD (14948-M)

A Participating Organisation of Bursa Malaysia Securities Berhad

Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 2032 5048
www.ta.com.my

Page 13 of 13
 For Internal Circulation Only

SNAPSHOT OF STOCKS UNDER COVERAGE

No. Company Share Price Target Price Market Cap. EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg
% upside Recom Beta
(RM) (RM) (RMm) FY21 FY22 FY21 FY22 FY21 FY22 High Price % Chg Low Price % Chg YTD
22-Sep-21
AUTOMOTIVE
1 BAUTO 1.59 1.70 6.9% Buy 1,847 1.19 11.5 12.0 13.8 13.2 4.1 4.5 1.65 -3.6 1.11 43.6 10.9
2 MBMR 3.15 4.40 39.7% Buy 1,231 1.15 37.6 48.9 8.4 6.4 5.7 7.3 3.73 -15.5 2.58 22.1 -7.1
3 PECCA 2.88 2.22 -22.9% Sell 528 0.95 10.3 13.6 28.0 21.2 2.4 3.1 4.73 -39.1 1.16 148.8 85.5
4 SIME 2.26 2.98 31.9% Buy 15,374 0.82 16.4 18.2 13.8 12.4 6.6 5.6 2.52 -10.5 2.07 9.1 0.0
5 UMW 3.05 3.86 26.6% Buy 3,563 1.83 22.1 32.1 13.8 9.5 1.0 1.6 3.64 -16.2 2.19 39.3 -10.3

BANKS & FINANCIAL SERVICES

6 ABMB 2.54 2.90 14.2% Buy 3,932 1.14 23.2 28.5 11.0 8.9 2.3 3.1 3.06 -17.0 2.15 18.1 -12.7
7 AFFIN 1.67 2.00 19.8% Buy 3,547 1.10 16.7 19.9 10.0 8.4 3.0 4.2 2.04 -18.1 1.35 23.7 -9.2
8 AMBANK 3.20 3.70 15.6% Buy 10,601 1.07 29.0 40.9 11.0 7.8 0.0 0.0 3.79 -15.6 2.63 21.7 -12.3
9 CIMB 4.80 6.10 27.1% Buy 48,068 1.16 41.3 50.6 11.6 9.5 3.1 3.8 4.99 -3.8 2.90 65.5 11.6
10 HLBANK 18.46 23.80 28.9% Buy 40,016 1.14 132.0 145.0 14.0 12.7 2.7 2.7 20.08 -8.1 14.48 27.5 1.4
11 MAYBANK 8.10 10.10 24.7% Buy 94,716 0.92 69.4 77.7 11.7 10.4 6.8 7.4 9.01 -10.1 6.96 16.4 -4.3
12 PBBANK 4.04 4.70 16.3% Buy 78,419 1.36 27.8 31.3 14.5 12.9 3.7 4.0 4.97 -18.7 2.97 36.1 -1.9
13 RHBBANK 5.38 6.60 22.7% Buy 21,888 1.10 60.2 69.8 8.9 7.7 4.1 4.6 5.98 -10.0 4.17 29.0 -1.3
14 BURSA 7.33 9.40 28.2% Buy 5,932 1.05 42.1 38.6 17.4 19.0 4.1 4.1 9.55 -23.3 7.31 0.3 -10.9

BUILDING MATERIALS
15 ANNJOO 2.54 3.15 24.0% Buy 1,378 1.61 54.0 36.7 4.7 6.9 6.2 4.8 3.18 -20.1 0.56 353.6 61.8
16 CHINWEL 1.28 1.63 27.3% Buy 367 1.15 9.3 11.9 13.8 10.8 2.6 3.7 1.58 -19.0 0.94 36.9 14.3
17 CMSB 1.21 1.68 38.8% Buy 1,300 1.68 14.3 17.0 8.4 7.1 1.7 3.6 2.52 -52.0 1.03 17.5 -42.9
18 CSCSTEL 1.31 1.66 26.7% Buy 484 1.31 17.7 17.0 7.4 7.7 7.9 7.6 2.00 -34.5 0.81 62.7 -3.0

CONSTRUCTION
19 GADANG 0.38 0.31 -17.3% Sell 273 1.54 2.7 3.3 13.8 11.3 0.8 1.3 0.50 -24.2 0.35 7.1 -15.7
20 GAMUDA 2.99 3.07 2.7% Sell 7,515 1.18 19.6 24.1 15.3 12.4 0.0 4.0 4.00 -25.3 2.60 15.0 -23.1
21 GDB 0.47 0.51 8.6% Hold 436 1.27 2.9 4.1 16.2 11.3 3.2 4.3 0.72 -35.4 0.35 32.9 -25.4
22 IJM 1.82 2.24 23.1% Buy 6,521 1.08 9.6 8.3 18.9 21.9 3.3 3.3 2.06 -11.7 1.32 37.9 5.2
23 INTA 0.27 0.45 69.8% Buy 142 1.09 3.5 5.0 7.6 5.3 3.8 3.8 0.40 -32.9 0.26 1.9 -13.1
24 KERJAYA 1.19 1.39 16.8% Buy 1,472 1.00 8.1 11.6 14.7 10.3 2.9 3.4 1.53 -22.2 0.89 33.7 12.3
25 SUNCON 1.59 1.64 3.1% Hold 2,050 0.81 6.1 9.1 26.2 17.4 2.5 4.4 2.00 -20.5 1.50 6.0 -15.4
26 WCT 0.56 0.70 26.1% Buy 787 1.54 4.0 5.8 13.9 9.5 0.0 0.0 0.63 -11.7 0.35 57.9 5.8

CONSUMER
Brewery
27 CARLSBG 22.30 27.50 23.3% Buy 6,818 1.22 61.0 80.3 36.5 27.8 2.2 3.6 24.96 -10.7 18.22 22.4 -4.0
28 HEIM 23.12 28.00 21.1% Buy 6,985 0.95 57.9 84.4 39.9 27.4 2.4 3.5 27.34 -15.4 17.86 29.5 0.4
Retail
29 AEON 1.49 1.75 17.4% Buy 2,092 1.04 7.0 9.4 21.4 15.9 2.0 2.7 1.57 -5.1 0.67 122.4 39.3
30 AMWAY 5.47 7.05 28.9% Buy 899 0.61 40.7 42.0 13.4 13.0 5.9 5.9 5.94 -7.9 4.84 13.1 -4.1
31 F&N 26.80 40.00 49.3% Buy 9,830 0.58 117.5 129.3 22.8 20.7 2.4 2.6 33.38 -19.7 24.22 10.7 -16.5
32 FOCUSP 0.75 1.03 37.3% Buy 247 0.74 3.4 4.5 22.0 16.8 2.0 2.7 0.98 -23.5 0.31 144.6 17.2
33 HUPSENG 0.94 0.98 4.3% Sell 752 0.56 4.0 5.2 23.4 18.0 4.8 5.3 1.03 -8.7 0.91 3.9 -1.1
34 ABLEGLOB 1.68 2.30 36.9% Buy 517 1.21 13.9 17.4 12.1 9.7 3.7 4.5 2.08 -19.2 1.42 18.3 -16.4
35 LHI 0.68 1.05 55.6% Buy 2,464 1.03 5.1 5.8 13.2 11.6 2.3 2.6 0.80 -15.6 0.64 6.3 -1.5
36 NESTLE 134.70 140.00 3.9% Sell 31,587 0.46 253.8 281.6 53.1 47.8 1.8 2.1 144.50 -6.8 131.10 2.7 -3.0
37 PADINI 3.08 3.00 -2.6% Sell 2,026 1.00 9.1 14.5 33.9 21.2 0.8 2.4 3.37 -8.6 2.00 54.0 6.9
38 POHUAT 1.44 1.84 27.8% Buy 382 1.12 20.0 21.3 7.2 6.8 6.3 6.3 2.06 -30.1 1.32 9.1 -17.2
39 QL 5.33 6.70 25.7% Buy 12,971 0.56 9.5 11.0 55.8 48.6 0.7 0.7 7.20 -26.0 5.27 1.1 -8.1
40 SCIENTX 4.65 5.05 8.6% Buy 7,211 0.72 27.1 30.1 17.2 15.5 1.8 1.9 4.87 -4.5 3.29 41.3 10.0
41 SIGN 0.93 1.12 21.1% Buy 255 1.56 2.3 5.2 40.1 18.0 0.0 2.2 1.15 -19.6 0.29 215.4 71.3
Tobacco
42 BAT 14.14 15.70 11.0% Buy 4,037 0.93 101.1 103.5 14.0 13.7 6.7 6.9 16.20 -12.7 9.80 44.3 0.4

GAMING
Casino
43 GENTING 4.91 5.63 14.7% Buy 18,906 1.39 -8.3 23.8 na 20.6 0.0 3.3 5.53 -11.2 2.90 69.2 11.9
44 GENM 3.03 3.18 5.0% Hold 17,129 1.08 -18.3 12.9 na 23.5 0.0 3.3 3.31 -8.5 1.93 57.3 15.8
NFO
45 BJTOTO 2.04 2.36 15.7% Buy 2,737 0.69 15.2 6.3 13.4 32.2 3.9 3.9 2.27 -10.1 1.88 8.5 -6.8

HEALTHCARE
Hospitals/ Pharmaceutical
46 DPHARMA 1.86 2.11 13.4% Buy 1,752 0.53 7.6 8.1 24.5 22.9 3.9 4.1 3.29 -43.4 1.76 5.5 -26.6
47 IHH 6.63 6.78 2.3% Hold 58,232 0.84 15.4 16.9 43.2 39.2 0.8 0.9 6.79 -2.4 4.85 36.7 20.5
48 KPJ 1.10 1.05 -4.5% Sell 4,723 0.67 1.5 3.7 75.4 30.0 0.6 1.5 1.17 -6.0 0.84 31.7 10.0
Rubber Gloves
49 HARTA 6.04 10.30 70.5% Buy 20,641 1.07 84.4 123.5 7.2 4.9 8.4 12.2 19.24 -68.6 5.82 3.8 -50.2
50 KOSSAN 2.40 3.92 63.3% Buy 6,124 0.83 127.8 50.6 1.9 4.7 21.0 8.3 8.01 -70.0 2.35 2.1 -45.5
51 SUPERMX 2.39 2.71 13.4% Sell 6,256 1.64 145.7 77.4 1.6 3.1 13.3 12.8 9.85 -75.7 2.32 3.0 -57.0
52 TOPGLOV 2.81 2.60 -7.5% Sell 22,500 1.14 98.3 18.6 2.9 15.1 23.2 3.2 9.61 -70.7 2.63 6.8 -53.5

INSURANCE
53 ALLIANZ 12.76 17.52 37.3% Buy 2,265 0.83 275.5 311.1 4.6 4.1 4.5 5.4 15.38 -17.0 12.48 2.2 -13.7
54 TUNEPRO 0.44 0.49 12.6% Buy 327 1.27 2.9 6.0 14.9 7.3 1.3 5.5 0.52 -15.5 0.30 47.5 0.0

MEDIA
55 ASTRO 1.04 1.35 29.8% Buy 5,423 0.97 10.2 10.1 10.2 10.2 7.7 7.7 1.26 -17.5 0.71 46.5 14.9
56 MEDIA PRIMA 0.49 0.46 -6.1% Sell 544 1.18 3.8 4.7 12.9 10.4 2.3 2.9 0.75 -34.7 0.15 237.9 71.9
57 STAR 0.36 0.35 -1.4% Sell 257 1.15 -3.6 -1.1 na na 0.0 0.0 0.48 -26.0 0.30 20.3 1.4
 For Internal Circulation Only

SNAPSHOT OF STOCKS UNDER COVERAGE

No. Company Share Price Target Price Market Cap. EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg
% upside Recom Beta
(RM) (RM) (RMm) FY21 FY22 FY21 FY22 FY21 FY22 High Price % Chg Low Price % Chg YTD

OIL & GAS

58 LCTITAN 2.55 3.08 20.8% Buy 5,808 1.36 42.8 24.8 6.0 10.3 4.7 1.6 3.54 -28.0 1.77 44.1 -7.9
59 MHB 0.38 0.46 21.1% Sell 608 1.67 -8.2 1.4 na 27.8 0.0 0.0 0.75 -49.0 0.30 26.7 -15.6
60 MISC 6.92 7.30 5.5% Buy 30,889 0.68 30.6 40.2 22.6 17.2 4.6 4.6 7.88 -12.2 5.96 16.1 0.7
61 PANTECH 0.52 0.64 24.3% Buy 396 1.06 3.5 5.7 14.6 9.1 4.5 3.4 0.58 -10.4 0.34 52.9 15.5
62 PCHEM 8.05 8.50 5.6% Hold 64,400 1.59 59.4 52.8 13.6 15.2 4.3 3.6 8.65 -6.9 5.34 50.7 8.3
63 SERBADK 0.34 0.28 -16.4% Sell 1,243 1.57 18.1 18.9 1.9 1.8 17.9 17.9 2.09 -84.0 0.31 9.8 -81.0
64 UZMA 0.57 0.72 26.3% Buy 182 1.62 4.6 8.2 12.5 7.0 0.0 0.0 0.90 -36.3 0.36 60.6 0.9
65 VELESTO 0.14 0.17 25.9% Buy 1,109 1.79 -1.3 0.2 na 55.8 0.0 0.0 0.20 -30.8 0.11 28.6 -3.6

PLANTATIONS
66 FGV 1.33 1.30 -2.3% Sell 4,852 1.16 6.6 4.2 20.1 31.5 2.3 2.3 1.67 -20.4 1.01 31.7 3.9
67 IJMPLNT 3.09 3.10 0.3% Accept Offer 2,721 1.17 15.3 16.3 20.2 19.0 3.2 3.2 3.10 -0.3 1.52 103.3 69.8
68 IOICORP 3.75 4.96 32.3% Buy 23,355 0.93 17.9 20.2 20.9 18.6 2.8 2.5 4.64 -19.2 3.54 5.9 -14.2
69 KLK 19.86 30.37 52.9% Buy 21,407 0.99 117.0 116.4 17.0 17.1 2.9 2.9 25.22 -21.3 18.52 7.2 -16.1
70 SIMEPLT 3.56 5.96 67.4% Buy 24,620 0.92 32.3 21.2 11.0 16.8 6.2 3.9 5.23 -31.9 3.27 8.9 -28.3
71 TSH 1.09 1.95 78.9% Buy 1,504 1.49 8.9 8.1 12.3 13.4 2.8 2.8 1.29 -15.5 0.92 18.5 -5.2
72 UMCCA 5.04 6.07 20.4% Buy 1,057 0.69 10.9 24.5 46.4 20.6 2.0 2.0 5.30 -4.9 4.43 13.8 -1.2

PROPERTY
73 GLOMAC 0.34 0.44 31.3% Buy 257 0.71 4.9 3.5 6.8 9.6 3.0 3.0 0.47 -28.7 0.28 21.8 3.1
74 HUAYANG 0.27 0.38 40.7% Buy 95 1.07 -14.5 0.5 na 51.1 0.0 0.0 0.39 -30.8 0.21 28.6 -3.6
75 IBRACO 0.57 0.65 14.0% Buy 283 0.66 4.9 8.2 11.6 6.9 2.6 2.6 0.68 -16.2 0.40 42.5 9.6
76 IOIPG 1.20 1.82 51.7% Buy 6,607 0.94 14.4 12.6 8.3 9.5 1.7 2.5 1.77 -32.2 0.85 41.2 -22.6
77 MAHSING 0.70 1.02 45.7% Buy 1,699 1.35 6.4 9.7 11.0 7.2 3.9 5.7 1.47 -52.4 0.63 11.1 -19.5
78 SIMEPROP 0.65 0.75 16.3% Buy 4,387 1.11 2.6 3.5 25.3 18.2 2.3 2.3 0.76 -14.6 0.54 20.6 -3.0
79 SPSETIA 1.20 1.35 12.5% Buy 4,882 1.32 7.3 12.4 16.4 9.7 1.3 2.1 1.27 -5.5 0.66 81.8 21.2
80 SUNWAY 1.70 2.19 28.8% Buy 8,311 0.72 5.8 9.6 29.5 17.6 1.2 1.8 1.82 -6.6 1.22 39.3 5.6
REIT
81 CMMT 0.62 0.68 9.7% Hold 1,319 0.56 2.4 4.1 25.7 15.1 4.2 6.6 0.74 -16.2 0.59 6.0 -0.8
82 SUNREIT 1.41 1.37 -2.8% Sell 4,829 0.62 5.7 7.4 24.8 19.0 3.7 4.9 1.63 -13.5 1.34 5.2 -6.0

POWER & UTILITIES

83 MALAKOF 0.82 1.09 33.7% Buy 3,983 0.74 7.1 7.6 11.4 10.7 7.4 8.1 0.98 -16.8 0.80 1.9 -8.9
84 PETDAG 19.00 20.00 5.3% Sell 18,876 0.78 61.9 76.8 30.7 24.7 2.9 3.6 22.10 -14.0 17.08 11.2 -11.2
85 PETGAS 16.90 18.70 10.7% Buy 33,441 0.65 97.1 97.2 17.4 17.4 4.6 4.6 18.10 -6.6 15.24 10.9 -1.3
86 TENAGA 9.81 12.50 27.4% Buy 56,173 0.83 64.2 80.0 15.3 12.3 3.6 4.5 11.05 -11.2 9.15 7.3 -2.2
87 YTLPOWR 0.71 0.77 8.5% Buy 5,753 0.96 -3.2 4.1 na 17.3 6.3 7.0 0.79 -10.1 0.61 16.4 -4.7

TELECOMMUNICATIONS
88 AXIATA 4.00 4.60 15.0% Buy 36,691 1.04 11.1 16.8 36.1 23.8 2.4 3.6 4.23 -5.4 2.66 50.4 7.0
89 DIGI 4.46 4.50 0.9% Hold 34,677 0.81 14.7 17.0 30.4 26.2 3.1 3.6 4.50 -0.9 3.43 30.0 7.7
90 MAXIS 4.64 5.05 8.8% Buy 36,314 0.75 18.8 21.9 24.7 21.1 4.3 4.3 5.29 -12.3 4.23 9.7 -7.9
91 TM 5.80 7.00 20.7% Buy 21,887 0.61 30.3 32.9 19.1 17.6 2.9 3.1 6.82 -15.0 3.99 45.4 7.2

TECHNOLOGY
Semiconductor & Electronics
92 ELSOFT 0.90 1.25 39.7% Buy 603 1.08 1.5 3.6 61.5 25.1 0.8 2.0 1.04 -13.9 0.59 53.0 12.6
93 INARI 3.67 4.25 15.8% Buy 13,518 0.78 8.8 10.3 41.7 35.6 3.0 2.5 3.75 -2.1 2.10 74.9 33.7
94 MPI 45.02 60.85 35.2% Buy 8,954 0.50 136.7 160.5 32.9 28.0 0.7 0.7 47.20 -4.6 17.58 156.1 73.4
95 N2N 0.74 1.20 63.3% Buy 439 1.33 4.3 4.6 17.2 16.0 4.1 4.1 0.92 -19.9 0.64 14.0 4.5
96 SKPRES 1.86 2.29 23.1% Buy 2,906 0.93 8.1 10.2 23.1 18.3 2.3 3.3 2.06 -9.5 1.29 44.2 8.1
97 UNISEM 8.55 11.80 38.0% Buy 6,896 0.59 28.4 33.8 30.1 25.3 1.1 1.2 9.43 -9.3 3.35 155.2 38.3
Note: UNISEM proposed 1 for 1 bonus issue of share. For more detail please refer to 02.08.21 report.

TRANSPORTATION
Airlines
98 AIRASIA 0.93 1.08 16.8% Buy 3,606 1.65 -48.0 7.4 na 12.5 0.0 0.0 1.27 -27.2 0.51 81.4 4.5
Note: AIRASIA proposed 7-year redeemable convertible unsecured Islamic debt securities (RCUIDS) with 1 free warrant for every 6 shares held. For more detail please refer to 13.07.21 report.
99 AIRPORT 6.82 7.49 9.8% Buy 11,316 1.09 -44.8 26.3 na 25.9 0.0 1.7 7.00 -2.6 4.05 68.4 15.2
Freight & Tankers
100 PTRANS 0.65 1.04 61.2% Buy 409 1.02 7.9 8.8 8.2 7.3 4.9 6.1 0.93 -30.3 0.55 17.3 -17.3
101 TNLOGIS 0.85 1.22 44.4% Buy 434 0.91 -0.1 4.5 na 18.7 1.2 2.4 1.10 -23.2 0.39 119.5 -4.5
102 WPRTS 4.37 5.28 20.8% Buy 14,902 0.48 20.4 22.8 21.5 19.2 3.5 3.9 4.74 -7.8 3.75 16.5 1.6

SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE

No. Company Share Price Target Price Market Cap. EPS (cent) PER (X) Div Yield (%) 52week 52week % Chg
% upside Recom Beta
(S$) (S$) (S$m) FY21 FY22 FY21 FY22 FY21 FY22 High Price % Chg Low Price % Chg YTD
BANKS & FINANCIAL SERVICES
1 DBS 29.30 37.30 27.3% Buy 75,252 1.15 230.1 259.8 12.7 11.3 3.4 4.1 31.74 -7.7 19.63 49.3 17.0
2 OCBC 11.39 15.70 37.8% Buy 51,268 1.04 103.2 117.3 11.0 9.7 3.3 3.8 12.77 -10.8 8.36 36.2 13.2
3 UOB 25.35 32.50 28.2% Buy 42,471 1.06 215.4 248.6 11.8 10.2 3.9 4.7 27.01 -6.1 18.85 34.5 12.2

PLANTATIONS
4 WILMAR 4.07 6.56 61.2% Buy 26,042 0.86 34.1 37.5 11.9 10.9 3.7 3.9 5.57 -26.9 3.95 3.0 -11.4

BUY : Total return within the next 12 months exceeds required rate of return by 5%-point.
HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point.
SELL : Total return is lower than the required rate of return.

Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting.
Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.