The company is currently trading at a forward PER of 13x, which is unjustifiable given its explosive earnings growth. We value the stock based on 20x FY20 PER and maintain our Outperform call with an unchanged TP of RM2.80.
Following our earnings cut, we arrive at a lower TP of RM0.22/share (previously RM0.30/share) based on a lower P/BV of 0.4x (previously 0.5x). Reiterate Sell as we believe the stock is fairly valued at current levels. Key risks include an unprecedented increase/decline in adex.
Maintain MARKET PERFORM with an unchanged Target Price of RM4.55 based on CY20E PER of 27.7x, implying mean. While FY20 should spell out a better year for IOICORP from stronger upstream and solid downstream, at current price level, the group appears fully valued at CY20 PER of 28.3x.
Maintain BUY with an unchanged TP of RM1.02. We make no changes to our earnings forecast for FY20/21F. We also maintain our TP of RM1.02, pending further information on the project development timeline on the land. Our TP of RM1.02 premised on our RNAV discount of 55%. We maintain our BUY recommendation on ECOWLD due to its attractive valuation and stable earnings outlook
eiterate BUY and MYR1.08 TP, 45% expected total return, on FY21F P/E of 18x. Our valuation is lower than peers’ 25x 1-year forward average P/E. 9MFY20 (Jan)’s earnings were broadly in line, as we anticipate higher sales ahead. We remain positive on its earnings prospects, premised on ongoing capacity expansion and research & development effort to grow sales, and increasing demand for specialty gloves. As the bespoke gloves manufacturer, we believe the progressive capacity expansion is timely to fulfil rising demand.
We expect Magni to benefit from the trade diversion as its major US customer diverts its orders to Vietnam and other ASEAN garment manufacturers. Furthermore, we opine that Magni will be able to grow in tandem with its single major customer. Given the minimal capex expenditure for the year, we are forecasting a higher dividend payout by Magni for the year from 30% to 35%.
IJM Plantations Bhd’s net loss narrowed substantially to RM2.32 million in its second quarter ended Sept 30, 2019 (2QFY20), from losses of RM28.30 million in the year-ago quarter, helped by higher sales volume and favourable foreign exchange positions.
Higher sales volume helped lift the group’s quarterly revenue by 23.4% to RM172.86 million, from RM140.09 million in 2QFY19, its exchange filing today showed.
During the quarter, IJM Plantations’ overall fresh fruit bunches (FFB) production improved as a result of the recovery of crop production in the home operations by 42.3%.
Cocoa processing company Guan Chong Bhd is likely set for a "bumper year" with record profit performance for its financial year 2019 (FY19), after its 3Q net profit jumped 38% year-on-year.
Its net profit for the three months ended Sept 30, 2019 (3QFY19) rose to RM60.53 million from RM43.87 million, while revenue expanded 24% to RM744.61 million from RM598.78 million, its stock exchange filing today showed.
Interestingly, Awang Daud’s entry into Sealink could be seen to be in line with Serba Dinamik’s recent moves to strengthen its capabilities. Separately, fellow co-founder cum group chief executive officer Datuk Mohd Abdul Karim Abdullah had also personally invested into Sarawak Consolidated Industries Bhd (SCIB) and Kumpulan Powernet Bhd (KPowernet) this year.
The company is involved in the marketing and distribution of software solutions, media publishing and solar renewable energy.
The group reported a higher net loss of RM648,000 for the third financial quarter ended March 31, 2019, versus RM601,000 a year ago, which it attributed to lower gross margins for its renewable energy segment. Revenue declined 55.35% to RM142,000 from RM318,000 on lower sales.
Business application solutions provider Rexit Bhd has secured a five-year outsourcing services agreement from Great Eastern Takaful Bhd (GETB) to develop, manage and operate the mySalam portal for eligible members.
The scope of services includes the development, operation, management and maintenance of the mySalam portal for eligible members to access for enquiries and claim submission, Rexit said in a filing with Bursa Malaysia today.
the group's announcement of its plans to establish and list on Bursa Malaysia's Main Market a commercial real estate investment trust (REIT) comprising assets at Mid Valley City and those along Jalan Tun Razak here.
Yesterday, IGB Bhd said in a Bursa filing that the initial portfolio of the proposed IGB Commercial REIT will comprise properties owned by IGB Bhd subsidiaries.
MSM Malaysia Holdings Bhd said higher operating costs and weaker price power for its sugar products contributed to losses in the third quarter ended Sept 30, 2019 (3Q19).
The company recorded a net loss of RM185.1 million or 26.34 sen loss per share for the 3Q19 versus a net profit of RM15.88 million or earnings per share of 2.26 sen recorded in the same period a year ago.
The country’s leading refined sugar producer and one of the biggest sugar refiners in Asia was hit by higher refining and finance cost including a RM137.35 million provision for plant and machinery.
Batu Kawan Bhd’s net profit for the financial year ended September 30, 2019 fell to RM363.49 million from RM365.68 million a year ago.
Revenue declined 15.3 per cent to RM16.05 billion from RM18.95 billion previously, due to weaker performance from the plantation, manufacturing and industrial chemical division, it said in a filing with Bursa Malaysia today.
The group said the plantation segment posted a 19.3 per cent lower revenue of RM6.39 million impacted by weaker crude palm oil (CPO) and palm kernel (PK) prices, while manufacturing reported a 13.2 per cent lower revenue of RM9.19 million.
Lower expenses and higher other income helped boost KESM Industries Bhd’s net profit to RM4.53 million or 10.53 sen a share for the first quarter ended Oct 31, 2019 (1QFY20), a whopping 71.45% more than the RM2.64 million or 6.14 sen a share for the same period last year.
The hard disc drive (HDD) component maker also attributed its lower earnings to additional non-cash employee benefits arising from share option granted under ESOS (employees’ share option scheme) of RM1.2 million and higher depreciation charges by RM700,000 in the current quarter.
MARKET talk has it that Datuk Seri Sulaiman Abdul Rahman Abdul Taib is trying to make his way back onto the board of diversified Cahya Mata Sarawak Bhd (CMS). Sulaiman is one of the sons of Sarawak Yang di-Pertua Negeri Tun Abdul Taib Mahmud, who served as chief minister from 1981 to 2014.
Power Root is continuously introducing new stock keeping units to expand its reach in the market. The group is expecting better growth in upcoming quarters after implementing new strategies in its distribution channels. In the Middle East and North Africa, typically making up about 80% of export sales, the group plans to leverage its well-received Alicafe brand.
The company’s net profit dropped 90.26% to RM1.87 million for the third quarter ended June 30, 2019 from RM19.19 million for the same period last year, due to lower operating income as revenue fell 16.31% to RM56.36 million from RM67.34 million.
For the first quarter of its FY19 (1QFY19), Toyo Ink’s net profit jumped more than 74 times to RM2.89 million, from RM39,000 last year mainly due to the RM2.3 million gain on disposal for its Shah Alam factory.
With its diversified and experienced manufacturing capabilities, Ge-Shen Group is a trusted partner within the global supply chain for various industries. Ge-Shen Group is a competent, certified and innovative provider of comprehensive engineering services and component manufacturing.
ViTrox Corp Bhd saw its net profit halved to RM13.86 million or 2.94 sen per share in its third quarter ended Sept 30, 2019 (3QFY19), from RM28.02 million or 5.96 sen per share in the year-ago quarter, due mainly to sales volume decline.
The group also attributed the lower profitability to its product mix during the quarter, besides its continuous investment in research and development (R&D) activities, according to its exchange filing today.
Quarterly revenue contracted 34.6% to RM66.51 million, from RM101.77 million in the year-ago quarter, on lower customer demand for its automated board inspection (ABI) and machine vision system (MVS), its filing showed.
This brings ViTrox's nine-month (9MFY19) net profit to RM61.86 million, down 18.6% against RM76.04 million in the corresponding period last year.
Hengyuan Refining Co Bhd and Petron Malaysia Refining & Marketing Bhd said today crude oil intake at their respective refineries at Port Dickson has normalised after repair work was completed at their crude oil offloading facilities there.
Westports Holdings Bhd disclosed a collision of a berthing container vessel with two ship-to-shore cranes at Westports in Port Klang on Nov 8, 2019. The company has closed two berths to assess damages and is currently investigating the contributing factors that led to the incident. Westports said “the container vessel concerned and affected assets have insurance coverage”.
Sarawak-based planters such as Ta Ann Holdings Bhd (TAH) and Sarawak Oil Palms Bhd (SOP) are likely to report better quarter-on-quarter (QoQ) core earnings on stronger output, the bank-backed research firm noted in a recent report.
tasek Corp Bhd’s net loss for the third quarter ended Sept 30, 2019 narrowed to RM5.37 million from RM5.99 million a year ago as the cement segment was affected by the prolonged price competition and high production cost.
This was compounded by lower interest income and lower share of profit from associate company. Its revenue however, rose 6.9% to RM160.24 million compared with RM149.88 million previously.
For the nine-month period, Tasek’s net loss widened to RM22.98 million from RM15.07 million a year ago, but revenue rose 1.3% to RM425.19 milllion from RM419.79 million.
Shangri-La Group has announced the opening of Shangri-La Hotel, Suzhou Yuanqu, marking the Group’s return to the historical water town since its establishment in Suzhou more than 10 years ago.
As the newest international luxury-branded hotel in the central business district of the Suzhou Industrial Park (SIP), the hotel embraces cultural heritage while offering the vibrancy of a modern city. Shangri-La Hotel, Suzhou Yuanqu fuses modern elegance with rich local traditions. Ancient gardens integrate with contemporary elements while the local culture is brought to life by Shangri-La.
AFTER suffering a dramatic decline in its fortunes over the past decade, KNM Group Bhd appears to be back on the radar screen of investors, with its share price climbing more than 500% so far this year.
ARB Bhd reported today a 4,263% spike in net profit at RM8.29 million in its third quarter ended Sept 30,2019 (3QFY19) from RM186,000 a year earlier, helped by a substantial revenue rise on IT-based income.
According to ARB Bhd's Bursa Malaysia filing today, IT-based income rose as the group's timber segment temporarily ceased operations during 3QFY19, ahead of an expected resumption in December 2019. ARB Bhd said total group revenue during the quarter increased to RM33.94 million, from RM3.8 million a year before
Gadang Holdings Bhd’s net profit for the first quarter ended Aug 31, 2019 (1QFY20) fell 10% to RM14.85 million, from RM16.54 million in the year-ago quarter, dragged by its lower property contribution.
This was despite a 14% rise in revenue to RM147.6 million from RM129.15 million, as it recognised higher work progress at its ongoing construction projects. A higher revenue and profit were also recorded at its utility division, thanks to lower operating expenses and a favourable foreign exchange translation effect in the current quarter.
Hektar Asset Management Sdn Bhd CEO Datuk Hisham Othman (pic), however, declined to divulge further information on the retail asset but reiterated that the Reit’s strategy is to own geographically diverse malls that are yield accretive.
“This strategy has been proven well and the future malls that we acquire will most likely be situated outside the Klang Valley, as the Klang Valley is saturated with overbuilt malls or retail assets,” he said after the REIT’s AGM.
"For the year (ended June 30, 2019), HLISB’s gross Islamic financing assets grew by 14% to RM26.1 billion, comprising 19% of the wider Hong Leong Bank Group’s total gross financing assets.
"HLISB will continue its efforts towards the development of Islamic banking business by strengthening digital capabilities, upholding Shariah standards and value-based intermediation, and encouraging diversified and innovative product offerings," he said.
The group expects the performance of the consumer products segment to remain stable, and film exhibition and distribution to be supported by the introduction of new cinematic technology and facilities in selected locations, the opening of new cinemas and strong title releases.
The environmental engineering and utilities segment will maintain its focus on replenishing the orderbook and exploring new project opportunities, while the property segment will continue executing existing projects and improve the yield of existing investment properties.
For the first half of 2019, PPB’s net profit declined 17.32% YoY to RM408.42 million, while revenue increased 3.59% YoY to RM2.31 billion.
Expected to commence in the third quarter of this year (3Q19), the contract is to drill two firm wells whereby the group will assign its Naga 7 drilling rig for the works.
Kenanga Investment Bank Bhd analyst Koh Huat Soon said the duration of the work is expected at 90 to 120 working days with daily charter rates believed to be near US$70,000 per day (excluding other value-added services).
This will enable Velesto Energy’s to make earnings before interest, taxes, depreciation and amortisation (EBITDA) margins of around 45%.
Loans growth, while still being driven largely by the consumer (mortgages and auto) and SME (property-related) segments, may fall slightly short of its 6%-7% target as current weakness in the corporate wholesale segment weighs. Though not appearing apparent as yet, corporates in Malaysia are seemingly holding back on investment decisions, hence the more lackluster numbers in the segment currently. Indonesia will be a key factor going forward, its credit expansion momentum remaining healthy. Bank Indonesia has just cut its policy rate for the fourth time this year to spur growth.
Among key growth drivers for JTB moving forward are; (1) recent expansion of its sweetened condensed milk (SCM) division’s production capacity by c.50%-70%, and (2) upcoming contribution from the 43%-owned Able Dairies Mexico (ADM), which will be ready for production by 1QFY20. We expect to see immediate contributions by 2HFY20 onwards, with an estimated utilisation of 70% from the new Mexico plant
KNM Group Bhd (KNM)’s indirect unit has accepted a US$12.31 million (RM51.48 million) purchase order from Petrofac Emirates LLC to supply pressure vessels and columns, it announced on Bursa Malaysia today.
The unit, FBM-KNM FZCO (FZCO), will supply the vessels and columns for the Ain Tsila development project in the southeast of Algiers, Algeria.
The purchase order is expected to contribute positively to KNM’s earnings for the financial years ending Dec 31, 2019 (FY19) and Dec 31, 2020 (FY20).