Maybank Investment Bank Research (Maybank IB) is maintaining its “buy” call on CIMB, with a target price of RM7.50.

It said Mitsubishi UFJ Financial Group’s (MUFC) Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU) disposal of its 4.6% stake in CIMB at a discount to market price had caused some near term share price weakness, adding however that the group’s fundamentals remain intact, with the prospect of improving return on equity (RoE) into 2018.

“CIMB is one of only two financial institutions in our portfolio that are expected to see improved RoEs into 2018 and this in itself, warrants a re-rating of the group. Its 2017 dividend yield of 4.1% provides support.

BTMU had disposed off its entire 4.6% stake of 412 million CIMB shares via an overnight block trade at price of RM6.20 per share – this being a 4% discount to last Tuesday’s closing price of RM6.46 and raising proceeds of about RM2.56bil.

“According to MUFG’s announcement, the group is looking to optimise capital management and is conducting a review of existing strategic investments by MUFG group of companies from the viewpoint of strategy, capital efficiency and profitability of investment, among others.

“BTMU’s Common Equity Tier 1 (CET1) ratio was 11.3% as at the end of June and we estimate a slight enhancement to 11.4% from this sale.”

Maybank IB pointed out that CIMB’s share price has weakened by about 6% from last Monday’s close of RM6.69.

“This enhances the attractiveness of the stock, in our view, especially since fundamentals remain intact.

“We continue to forecast an expansion in RoE to 10.6% in 2018 from 9.6% in 2017 and this justifies the re-rating of the group.”


Read more at http://www.thestar.com.my/business/business-news/2017/09/25/analyst-reports/#ab8QIowPJwUh3lLw.99

LOTTE CHEMICAL TITAN HOLDINGS BHD

By CIMB Research

Add (maintained)

Target Price: RM8.50

LOTTE Chemical Titan Holdings Bhd’s fire accident at its PP3 expansion plant in Pasir Gudang, Johor was reported to be minor, according to CIMB Research.

Plants are operating as usual with no interruptions.

Meanwhile, after the disappointing second quarter 2Q17 results due to the unplanned shutdown because of water shortage and multiple non-recurring items, CIMB Research expects Lotte’s net profit to recover in the third quarter of 2017.

“We project average utilisation rate of 80% in the third quarter of 2017 for Lotte.

“This is higher than the 70% in second quarter due to water shortage and 60% in the first quarter due to the 53-day planned shutdown of naphtha cracker #2 (longer than the planned shutdown of 33 days in 3Q17 for naphtha cracker #1).

In the meantime, CIMB Research has projected Lotte to continue to improve its overall utilisation rate from 80% in the third quarter of 2017 to 90% in the fourth quarter of 2017, bringing the average utilisation rate for FY17 to 75%.

“This is in line with our projection. We believe the third quarter and fourth quarter 2017 earnings will be strong at RM0.2bil-RM0.5bil per quarter, thanks to high margins for HDPE-naphtha, benzene-naphtha and PP-naphtha, which would more than offset the weak BD-naphtha margin,” the house said.

The research firm does not think that the water damage caused by the unplanned water shortage during the second quarter would recur because Lotte plans to expand its water storage capacity from one day currently to two days by the end of fiscal 2018 forecast.

The company has decided to only start plant operations when it is confident that there will be sufficient and consistent water supply.

The stock is trading at only 3.2 times FY17 forecast earnings before interest, tax, depreciation and amortisation, significantly below its regional peers’ average of 8.3 times.

CIMB thinks Lotte remained attractive given the anticipated strong earnings growth recovery post second quarter 2017.

This is driven by utilisation rate improvement that is expected to go on in the third to fourth quarter of 2017.


Read more at http://www.thestar.com.my/business/business-news/2017/09/25/analyst-reports/#ab8QIowPJwUh3lLw.99

many houses give buy call with high tp

.

CIMB give high Target price, RM 8.50

upside if wct > 1.8

.

Ambank talk cock. . .jgn percaya . ..PLs sell . ..

time to fly back > 550 .

epf buy, th sell ..jadi square. .. wct < 190 . no show

sudah cakap sell ..tak dengar. ..

fake news or real ?

.

.

jgn la ..kita mimpi .. . ..w ct, shit share. .sell

Wave . . .

Protoni is waiting money from China?

will wct fall macam that day after awarded RM 840 mil ?

be mindful

will wct fall macam that day after awarded RM 840 mil ?

be mindful

ANOTHER TAUFAN IS HITTING WESTERN COUNTRY?

put money in bank , , safer ...than buy wct wd

vegebotak - SMART move..

streamlining of the construction and property development businesses, presently under both WCT and Malton, into WCT

A likely scenario she said could be the injection of WCT’s readily REIT-able assets - BBT Mall, Paradigm Mall PJ, which have a total asset value of RM1.2bil into Pavilion REIT

dah cakap 10x ..

POOR SHARE. PLS SELL.

POOR SHARE. PLS SELL.

........................


SELL WCT


........................

Rm 5 ? haha

sell .sell .

game over. .sell ..sell

WCT’s post-results briefing centred on changes to its de-gearing initiatives, future newcontract
targets and updates on its property developments. WCT has abandoned plans for
an outright sale of its properties and will instead create a WCT REIT. The group has also
recently signed an MOU with a Chinese contractor for a potential collaboration and
brushed off rumours of it taking part in Bandar Malaysia. Maintain HOLD and target price of
RM2.03. Entry price: RM1.80.

sell la. . poor share

Go go go ..

http://www.theedgemarkets.com/article/hurdle-wct-rm183-says-alliancedbs-research

Hurdle for WCT at RM1.83, says AllianceDBS Research

more upside ahead RM 6

when will this share jalan?

CW ALL GOOD

good sharing hgn33

sell . .sell . .sell . .sell . .

sell . .sell . .sell . .sell . .

poor company. .sell sell

poor company. .sell sell

sell..sell..sell..

sell ..sell ..sell ..

sell. .sell. .sell. .sell. .

sell . .sell . .sell . .

...

buy during mega sales ?

.

..