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The views & opinions expressed are the dealers' own and they do not represent the views of UOBKH. The content is written in their personal capacity and is in no way related or associated to UOBKH. Please read disclaimer page here.

Friday, July 14, 2017

Malaysia 2H17 Outlook | Likely more subdued; prefer Dialog Group DLG/ Bumi Armnada BAB

My view:

Mal-2H17-Outlook:

Theme:         Subdued-2H17-likely

1.        UOBKH Research expects a a more subdued 2H17 for the FBMKLCI amid macro challenges such as:
        a.        Significant expiry of Malaysian Government Securities
        b.        Lower crude oil prices (whichwill modestly lower the government's revenue expectations)
        c.        Rising US interest rates
        d.        Expectations for a 2017 general election have somewhat waned.

2.        While we advocate adopting a more defensive strategy, we still expect good returns for selected investment themes:
        a.        Mega infrastructure
        b.        China's FDI
        c.        E&E plays

3.        OVERWEIGHT:
        a.        Construction/Building materials (should gradually pick up momentum in 2H17)
        b.        E&E and utilities sectors
        c.        NFO segment, which offers a prospective dividend yields of up to 7.0%

4.        UNDERWEIGHT:
        a.        Automobile
        b.        Plantation


Please contact us for the full version of this UOB Kay Hian research analyst report.

Thanks & Regards
Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

Thursday, July 13, 2017

Malaysia Technology | Prefer ECS ICT /Salutica post our tech conference

My view:
Mal-Technology-pick:
Theme: Overweight-Malaysia-Technology-sector

1. UOBKH recently hosted a Malaysia Technology Conference in KL. The New Economy/ Internet of Things (IoT) will bring forth a tsunami of changes that will be felt in the core of many businesses and consumers.

2. The conference offered deep insights from keynote speakers covering the disruptive trends especially in finance, retail, ecommerce and healthcare, and the types of technologies (data analytics, cognitive computing, robotics) that companies may need to invest to stay relevant in the future. Listed beneficiaries of IoT are logistics, fintech and EMS manufacturers.

3. UOBKH Research has an OVERWEIGHT on Malaysia Techonology Sector. UOBKH recently hosted a conference with updates from logistics, manufacturers and fintech companies. Among the featured companies, we maintain our BUY call:

        a. ECS with TP of RM1.68, pegged to 9x 2018F PE. ECS is a proxy to the rising ICT spending in Malaysia on the back of the country's focus towards a digital economy.

        b. Nnon-rated Salutica on its potential catalysts: a) pick-up in bluetooth headsets sales in FY18 on clients' introduction of new models, b) capacity expansion for Neonode's AirBar module solutions in end-2QFY18, and c) expanding its sales channels of tyre pressure monitoring products through collaboration with car manufacturers.


Please contact us for the full version of this UOB Kay Hian research analyst report.

Thanks & Regards

Invest Stock - www.facebook.com/investstock
Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

Tuesday, July 11, 2017

Thai Bev (THBEV SP) | Trading range S$0.85 - S$1.10

My view:

Asia-Consumer-pick:
Thai Bev (THBEV SP) Px/Tgt SGD0.92/1.09

Theme:         Trading-range-80cts/sgd1.10

1.        We had called a BUY nearer 85cts in our Mar 17 initiation & share price has chugged up to current 92cts on its way to our target of sgd1.09. This is a super-boring stock. I recommend a trading BUY/SELL range: 85cts/sgd1.10 for a +25% portfolio return flip. There are no major catalyst to see share price punch through its sgd1.10 ceiling yet.

2.        THBEV SP is still lagging peers despite solid fundamentals and recovering consumption. While Thai Beverage's (THBEV) share price has since recovered from its weak 1H17 results, we note that THBEV (FY17F PE of 19.3x) is still trading at a 27% discount to global alcohol peers (FY17F PE 26.3x) and 33% discount to Asia alcohol peers (FY17F PE 28.9x).

3.        UOBKH Research has BUY; target price S$1.09. Sum-of-the-parts target price of S$1.09. We value: a) the spirits business at 17x EV/EBITDA, in line with global peers, b) the beer business at 15x EV/EBITDA, a premium to the global peers' average of 13.7x as we see THBEV's beer business is currently in a strong uptrend. THBEV's current PE at 19.9x is still lower than that of global spirits peers' average of 31.2x 2017F PE, 23.0x for beer companies and 27.1x for NAB companies.

Please contact us for the full version of this UOB Kay Hian research analyst report.

Thanks & Regards
Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

Friday, July 07, 2017

Malaysia Building Material | Prefer Hume Industries (HUME MK)

My view:

Mal-Building-Material-picks:

Theme: Steel/Cement-weighed-down-but-Cement-to-recover-2H17

1.        UOBKH Research has MARKETWEIGHT on Malaysia Building Material sector. Top pick: Hume Industries.

2.        Local steel prices declined further in Jun 17, largely attributed to weak steel consumption as well as higher production in China. Coal prices have also gone up in anticipation of higher output from Chinese millers. Hence, we believe earnings growth of steel companies will take a breather in 2Q17.

3.        For the cement segment, we expcect another quarter of earnings disappointment before a price recovery in 2H17.











UOB Kay Hian Research issued a report dated today on the above topic. Please contact us for the full research analyst report.

Thanks & Regards
Invest Stock - www.facebook.com/investstock
Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

Thursday, July 06, 2017

CITIC Envirotech’s (CEL SP) | Buy nearer S$0.70

My view:

S'pore-Small-Cap-pick:
CEL SP:
Px/Tgt: SGD0.74/1.10

1.        I would be a CONVICTION BUYER on CITIC Envirotech's (CEL SP) nearer 70cts despite share price stuck in a 70-85cts range.

2.        UOBKH Research have a DCF-based target price of S$1.10. CITIC Envirotech's (CEL SP) share price has dipped to attractive levels, opening up an opportunity for investors to acquire shares close to the strategic shareholder's entry levels.

3.        The company is on track to delivering its ambitious internal target of securing S$1b in new project wins. Also, with shareholders approving a share purchase mandate in May 17, share buybacks could support share price.

UOB Kay Hian Research issued a report dated today on the above topic. Please contact us for the full research analyst report.

Thanks & Regards
Any expression of trading idea found on this website is for sharing only and does not constitute an invitation to trade or investment advice. Please read disclaimer page here.

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