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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
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.
Page 1 of 13
23-Sep-21
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 )
Page 2 of 13
23-Sep-21
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.
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)
Page 3 of 13
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)
Page 4 of 13
23-Sep-21
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 )
Page 5 of 13
23-Sep-21
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)
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
Page 6 of 13
23-Sep-21
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)
Page 7 of 13
23-Sep-21
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)
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)
Page 8 of 13
23-Sep-21
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)
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)
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.
Page 9 of 13
23-Sep-21
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)
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.
Page 11 of 13
23-Sep-21
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
(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.
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
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
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
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
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.