REGIONAL DAILY December 26, 2012 IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. MALAYSIA Malaysia Daybreak | 10 December 2014 ▌What’s on the Table… —————————————————————————————————————————————————————————————————————— Economic Focus - Malaysia’s demographic tailwind Malaysia is currently in a sweet spot whereby the share of working age population has been rising and when complemented by higher wages to GDP translates to positive demographic dividends that could last up to two decades. The demographic dividend, urbanisation, accessible financing, and changes in lifestyle of the middle class who aspire for better quality living are key catalytic drivers to unlock consumption and enhance spending. While other economies like Thailand and Singapore are seeing their demographic tail wind turning the other way, Malaysia can look forward to a longer period of favorable dividends. CIMB Yearbook - Malaysia's demographic dividend Malaysia's march towards developed nation status by 2020 is being assisted by favourable demographics. The country's demographic dividend is not only a boost economically but it is also positive for a long list of sectors from consumer to properties. Although long-term prospects are promising, the outlook for 2015 is more challenging. We lower our end-2015 KLCI target from 1,970pts to 1,800pts after removing the 10% premium over our 3-year moving average P/E due to heightened nearer-term risks. Our preferred sectors for 2015 are the construction, transport and utilities sectors. We still like the smaller-cap stocks. SapuraKencana Petroleum - Top of the barrel with a record 9M and a surprise dividend SapuraKencana’s record 9M net profit broadly met our expectation at 78% of our FY1/15 forecast. We expect a soft 4Q due to the monsoon season. Still, 9M net profit surpassed consensus expectation by fulfilling 92% of estimates. 9M net profit hit RM1bn for the first time, fuelled mostly by contributions from SKEI's and Seadrill's assets. We continue to value the stock at 21.2x CY16 P/E, still at a 30% premium over our target market P/E of 16.3x, pending a review of our premium valuations. We maintain our Add call, with strong order book momentum as a potential re-rating catalyst. SapuraKencana remains our top pick among the oil & gas big caps. Berjaya Food Berhad - Slower growth from Starbucks Economic Update - Investments moderated in 3Q14 ▌News of the Day… —————————————————————————————————————————————————————————————————————— • Jamaludin clinches CEO of the year award • FGV set to triple biodiesel production by 2016 • IJM unit clinches two contracts worth RM435m from Sime • Tanah Makmur gets Pahang job to build new administrative complex • Crude oil prices fall to five-year lows • Khazanah not selling SilTerra stake to China party Key Metrics FBMKLCI Index 1,700 1,750 1,800 1,850 1,900 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 ——————————————————————————— FBMKLCI 1738.1 -2.74pts -0.16% Dec Futures Jan 15 Futures 1734 - (-0.14% ) 1734 - (1.00% ) ——————————————————————————— Gainers Losers Unchanged 218 646 238 ——————————————————————————— Turnover 1443.33m shares / RM1702.355m 3m av g v olume traded 2067.83m shares 3m av g v alue traded RM1989.31m ——————————————————————————— Regional Indices FBMKLCI FSSTI JCI SET HSI 1,738 3,320 5,122 1,560 23,486 ———————————————————————————————— Close % chg YTD % chg FBMKLCI 1,738.10 (0.2) (6.9) FBM100 11,685.14 (0.2) (7.2) FBMSC 15,191.79 (1.5) (3.2) FBMMES 5,726.77 (2.9) 0.9 Dow Jones 17,801.20 (0.3) 7.4 NASDAQ 4,766.47 0.5 14.1 FSSTI 3,319.84 0.7 4.8 FTSE-100 6,529.47 (2.1) (3.3) SENSEX 27,797.01 (1.1) 31.3 H ang Seng 23,485.83 (2.3) 0.8 JCI 5,122.31 (0.4) 19.8 KOSPI 1,970.95 (0.4) (2.0) Nikkei 225 17,813.38 (0.7) 9.3 PCOMP 7,183.87 (0.6) 22.0 SET 1,559.56 (1.0) 20.1 Shanghai 2,856.27 (5.4) 35.0 Taiw an 9,128.90 (0.6) 6.0 ———————————————————————————————— Close % chg Vol. (m) COMPUGATES 0.055 10.0 41.5 SUMATEC 0.210 (6.7) 31.4 SAPURAKENCANA 2.450 (2.8) 30.8 SYSTECH BHD 0.230 (17.9) 26.8 BUMI ARMADA 1.060 (2.8) 23.2 PERISAI PETROL 0.480 (5.0) 22.8 IFCA MSC 0.725 (4.6) 21.5 PRIVASIA 0.130 (3.7) 19.6 ———————————————————————————————— Close % chg US$/Euro 1.2373 (0.02) RM/US$ (Spot) 3.4837 (0.04) RM/US$ (12-mth NDF) 3.5740 (0.12) OPR (% ) 3.25 0.00 BLR (% , CIMB Bank) 6.85 0.00 GOLD ( US$/oz) 1,231.30 0.03 WTI crude oil US spot (US$/barrel) 63.82 1.22 CPO spot price (RM/tonne) 2,140.00 (0.33) Market Indices Top Actives Economic Statistics ———————————————————————————————————————— Terence WONG, CFA T (60) 3 2261 9088 E [email protected]
Transcript
REGIONAL DAILY
December 26, 2012
IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT.
Malaysia is currently in a sweet spot whereby the share of working age population has been rising and when complemented by higher wages to GDP translates to positive demographic dividends that could last up to two decades. The demographic dividend, urbanisation, accessible financing, and changes in lifestyle of the middle class who aspire for better quality living are key catalytic drivers to unlock consumption and enhance spending. While other economies like Thailand and Singapore are seeing their demographic tail wind turning the other way, Malaysia can look forward to a longer period of favorable dividends.
CIMB Yearbook - Malaysia's demographic dividend
Malaysia's march towards developed nation status by 2020 is being assisted by favourable demographics. The country's demographic dividend is not only a boost economically but it is also positive for a long list of sectors from consumer to properties. Although long-term prospects are promising, the outlook for 2015 is more challenging. We lower our end-2015 KLCI target from 1,970pts to 1,800pts after removing the 10% premium over our 3-year moving average P/E due to heightened nearer-term risks. Our preferred sectors for 2015 are the construction, transport and utilities sectors. We still like the smaller-cap stocks.
SapuraKencana Petroleum - Top of the barrel with a record 9M and a surprise dividend
SapuraKencana’s record 9M net profit broadly met our expectation at 78% of our FY1/15 forecast. We expect a soft 4Q due to the monsoon season. Still, 9M net profit surpassed consensus expectation by fulfilling 92% of estimates. 9M net profit hit RM1bn for the first time, fuelled mostly by contributions from SKEI's and Seadrill's assets. We continue to value the stock at 21.2x CY16 P/E, still at a 30% premium over our target market P/E of 16.3x, pending a review of our premium valuations. We maintain our Add call, with strong order book momentum as a potential re-rating catalyst. SapuraKencana remains our top pick among the oil & gas big caps.
Berjaya Food Berhad - Slower growth from Starbucks
Economic Update - Investments moderated in 3Q14
▌News of the Day…
—————————————————————————————————————————————————————————————————————— • Jamaludin clinches CEO of the year award
• FGV set to triple biodiesel production by 2016
• IJM unit clinches two contracts worth RM435m from Sime
• Tanah Makmur gets Pahang job to build new administrative complex
• Crude oil prices fall to five-year lows
• Khazanah not selling SilTerra stake to China party
Widening inequality creates a drag on economic growth that can be counteracted by tax policies to benefit the less well-off, according to the Organisation for Economic Cooperation and Development (OECD).
OECD said inequality undermines growth by preventing disadvantaged people from accessing education to develop their skills, impeding social mobility.
To offset the damage, policy makers need to be concerned with the general welfare of the bottom 40% and not just the poverty of the lowest 10%.
According to the OECD, inequality knocked about 6-7% pts off US GDP growth between 1990 and 2010, while the UK, Italy and Mexico were among countries that also experienced a drag. (Bloomberg)
The US National Federation of Independent Business (NFIB)'s small-business optimism index increased to 98.1 in Nov (96.1 in Oct), putting the index a hair above its average of 98.0 from 1974 to 2014. (WSJ)
The US Institute for Supply Management (ISM)’s semi-annual forecasts of manufacturing and non-manufacturing supply executives show revenue, capital investment and employment are expected to grow at solid paces in 2015. Non-manufacturers are especially upbeat about revenue prospects.
Among manufacturers, revenue is expected to rise 5.6% in 2015 compared with +3.6% in 2014. 15 of the 18 industries expected revenues to increase in 2015.
Among non-manufacturers, respondents expect a 10% increase in revenue in 2015, almost double the 5.1% seen for 2014.
Respondents of the ISM survey think capital spending will increase by 3.8% in 2015. (WSJ)
The US job openings rose to 4.83m in Oct (4.69m in Sep), the second-highest level since Jan 2001. (Bloomberg)
The European Union (EU) completed its budget plans for 2014 and 2015, as the bloc's lawmakers and member states struck a compromise that will see an extra €3.5bn (US$4.3bn) in unsettled bills paid this year. The deal averts the need for the EU to enter 2015 on emergency funding levels.
For 2015, member states agreed to pay €141bn, an increase of 1.6% on the final 2014 figures, into the EU budget. That is €1.2bn more than they originally offered. (WSJ)
The European Union (EU)’s investment task force identified 1.3tr euros ($1.6tr) of projects waiting for funding across the 28-nation bloc.
More than 2,000 projects made it on to the task force’s list, a snapshot of what initiatives are available across Europe. The report says many of these projects are stuck behind funding and regulatory barriers, which the EU hopes to lift. (Bloomberg)
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European Central Bank (ECB) Executive Board member Peter Praet said falling oil prices could push the euro-area inflation rate below zero, adding that the ECB “will do what is necessary” to meet its mandate of price stability. (Bloomberg)
Japan's Finance Minister Taro Aso believes that the country's economy is not in a recession, saying it is growing compared with its year-earlier levels and sticking to his longstanding optimistic views despite two consecutive quarters of shrinkage in growth. (WSJ)
The M2 money stock in Japan was up 3.6% yoy in Nov (3.2% in Oct), standing at ¥885.8tr. The M3 money stock climbed 2.9% yoy (2.6% in Oct) to ¥1,199.7tr. (RTT)
The National Australia Bank (NAB)'s monthly survey of business conditions and confidence showed confidence fell to +1 points in Nov (+5 points in Oct) and business conditions fell to +5 points (+13 Nov). (WSJ)
Bank Indonesia (BI) estimated bad loans would rise by the end of 2014 to 2.4% of outstanding loans, up from 1.8% at the end of 2013, but a level the bank still considered manageable, an official said.
BI expected annual loan growth to register its slowest pace since 2010, at 11 to 12%, or just over half of last year’s pace of 21.4%. (Jakarta Globe)
Malaysian Economic News
Malaysia can expect a modest increase in investments in the manufacturing sector this year, bolstered by investments in the electrical and electronics (E&E) sector. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said in the first nine months of this year, approved investments by the Malaysian Investment Development Authority at RM63.5bn exceeded that of RM52.1bn last year.
The latest data point towards total investments exceeding RM70bn for the whole year. “The sector has set a new record as domestic investors continue to increase their share while foreign direct investments (FDIs) continue to look at Malaysia as a favourite destination,” he said. (NST)
For further details, kindly refer to our Economic Update
The minimum wage implementation according to a recent survey has proven to be success. Human Resources Minister Datuk Seri Richard Riot said his ministry had inspected 986 companies since the Minimum Wage was implemented. He said the 986 companies were based across the country and covered various sectors. "Of this, 98% complied and only 2% did not."
Richard said those that did not comply would be given a warning before being taken to court. Those who have yet to comply will also need to pay their employees arrears owed to them. Richard said that only maids and apprentices were exempt from the Minimum Wage ruling. (NST)
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The operation to monitor and control prices by the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) is held at all time and not during festive seasons only, said its minister Datuk Seri Ahmad Bashah Md Hanipah. He said continuous monitoring conducted via KPDNKK Ops Harga was not only to control the prices of goods but also to take action against individuals and premises which exploited situations to raise prices. "We have two levels of enforcement, from the legal as well as inspection aspect. Ops Harga is continuous regardless of the season and enforcement during festive season," he said. (Bernama)
Companies that charge the Sales and Service Tax (SST) now must not change that to “Goods and Services Tax (GST)” on their receipts until it kicks in next year. Deputy Finance Minister Datuk Ahmad Maslan said that could be confusing to the public, although both taxes amounted to 6% of retail value. He was responding to claims by some members of the public who claimed that they were charged the GST by some service providers, including private carpark operators.
They claimed that the term “GST” was printed on the receipts. The GST will kick in on 1 Apr. Companies with an annual turnover of RM500,000 and above must register now to implement the tax. More than 200,000 companies have registered and the Government hopes to make this 300,000 by the end of the year. (The Star)
Malaysians are rushing to buy luxury goods and big-ticket items such as jewellery, expensive watches, big-screen TVs and furniture before the Goods and Services Tax (GST) is implemented in Apr. Malls and retailers say the spike in such purchases comes on top of the typical Dec shopping splurge. The usual festive and year-end sales have been given a boost by the impending Goods and Services Tax (GST) that will kick in on 1 Apr.
Malaysia Shopping Malls Association adviser H.C. Chan said the strong demand was expected. “People are opting to buy these now so as not to pay more after GST has been implemented,” Chan said. “We believe the demand for these items will reduce significantly after April,” he added. (The Star)
The Goods and Services Tax (GST) is likely to have minimal impact on the renovation construction sector during the initial phase of implementation of the new tax system from 1 Apr, next year. Construction Industry Development Board (CIDB) Malaysia Chief Executive Officer Datuk Seri Dr Judin Abdul Karim said the impact of any price hike on building materials would also depend on whether it is locally made or imported.
"In the beginning, industry players may be unsure of the GST, and tend to increase prices of items. But, I am sure the government will take action to ensure no one takes advantage of the situation," he said. (Bernama)
The impact of the depreciation of the ringgit on exports is not significant, says Malaysia External Trade Development Corp (Matrade) chief executive officer, Datuk Dr Wong Lai Sum. She said that although many think that the depreciation would make exports more competitive, it's not the same scenario for all industries. For instance, in the the electrical and electronics industry where the sourcing of inputs and export were done in US dollar, its impact would be minimal. (Bernama)
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Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, said the second wave of the Look East Policy (LEP 2.0) will give a special focus on economic cooperation with South Korea and for a start it will be in line with Malaysia's Economic Transformation Programme and South Korea's Creative Economy initiatives.
He said emphasis would be on developing strategic sectors such as automotive, small and medium enterprise (SME) development, trade and applied research and development to leverage on each other's trade and investment environment ecosystem.
"To drive implementation of LEP 2.0, both Malaysian and South Korean governments will leverage on the existing cooperative channels on bilateral industrial cooperation in automotive, electrical and electronics/information and communications technology, plant, and trade and investment to explore new areas of collaborations," he said. (Bernama)
The Transparency Index of Malaysia's top 100 public listed companies (PLCs) increased to 76.43 (75.99 recorded 2013), according to the Minority Shareholders Watchdog Group's (MSWG) 2014 report findings. The companies were assessed based on the Organisation for Economic Co-operation and Development (OECD) Principles of Corporate Governance criteria. (Bernama)
Political News
Politicians who sue their critics are "infantile" and should instead use the Parliament or the state assembly to defend their policies, veteran newsman Datuk A. Kadir Jasin wrote yesterday, in a reference to Prime Minister Datuk Seri Najib Razak.
The former New Straits Times group editor-in-chief blogged about the legal notices Najib had sent to two Pakatan Rakyat lawmakers, Petaling Jaya Utara MP Tony Pua (DAP) and Pandan MP Rafizi Ramli (PKR), over their criticism on the government's sovereign fund 1Malaysia Development Bhd (1MDB) and the fuel subsidy policy.
"As elected representatives they make laws. They are their custodians. The courts merely interpret the laws they made. "By resorting to the courts, the politicians are admitting that they can no longer defend themselves politically," Kadir wrote. (Malaysian Insider)
The Pakatan Rakyat leadership council has not been meeting for over six months, a sign that things aren't well in the Opposition, says DAP adviser Lim Kit Siang. Lim said the meetings were important to reaffirm the Opposition's common policy framework and the principle of consensus. "If you ask me whether I can categorically say that the tripartite Pakatan Rakyat will be around to fight the 14th general election, I cannot answer as I do not know," he added. (Star)
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Corporate News
Felda Global Ventures Holdings, the world's third-largest palm plantation operator, plans to more than triple its production of palm-based biodiesel over the next two years, with a third of it expected to be consumed locally.
Felda Global's output of palm methyl ester (PME) will be increased from the current 100,000 tonnes annually to 350,000 tonnes by 2016, Chief Executive Officer Mohd Emir Mavani Abdullah said.
While 70% of that will be exported, a part of the domestic portion will be blended to power Felda's fleet of 450 tankers, first with B30, a formula that uses four times the amount of palm oil content compared to B7 in the subsidised biodiesel sector, before moving into 100% palm oil. (Malaysian Insider)
IJM Corporation has secured RM435.3m in contracts to undertake a mixed development project at Bukit Jelutong, Selangor. The group accepted two letters of awards (LOA) from Sime Darby Sunrise Development Sdn Bhd. The contracts would involve the superstructure, infrastructure and landscaping. The first contract valued at RM262.9m is for 26 months and start on Dec 15 and it involves building commercial complexes, service apartments and car parks. The second contract, valued at RM172.4m is over 26 months and starts on June 15, 2015. It comprises of commercial complexes, service apartments and car parks. (StarBiz)
Oil dived 4% to new five-year lows as Wall Street expectations of a deeper price slump next year and a Kuwaiti prediction for US$65 crude set off one of the biggest declines this year. The chief executive of Kuwait's national oil company said oil prices were likely to remain around $65 a barrel for the next six to seven months, the latest indication that Gulf producers are content to ride out the rout. (StarBiz)
Axiata Group Bhd managing director and group chief executive officer Datuk Seri Jamaludin Ibrahim was crowned “CEO of the Year” by the Minority Shareholder Watchdog Group (MSWG) last night.Jamaludin was chosen as the winner at the “MSWG-Asean Corporate Governance Transparency Index, Findings and Recognition 2014 — The Malaysian Chapter” dinner. Deputy Prime Minister Tan Sri Muhyiddin Yassin was also present at the event. The organisers see Jamaludin as a leader who has demonstrated great influence in corporate governance within his company and the marketplace. (NST)
IJM Corp Bhd’s unit, IJM Construction Sdn Bhd has clinched two contracts from Sime Darby Sunrise Development Sdn Bhd worth RM435.34m. In a statement to Bursa Malaysia, IJM said the contracts are for the proposed mixed development in Bukit Jelutong, Selangor. (NST)
Signature International is planning plant expansion in Negri Sembilan to keep up with new orders. “We plan to set up a new factory to cater for our project orders. The developer is putting in the infrastructure works at the industrial land. “It will take another 18 months to complete the acquisition,” Group MD Tan Kee Choong said. “We have about RM200m in our order book and 70% are project orders. The new facility in Negri Sembilan will enable us to cater for our production in tandem with business growth,” he said. (BT)
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Tanah Makmur Bhd has received a Letter of Intent (LOI) from the State Government of Pahang for the development of Pusat Pentadbiran Sultan Ahmad Shah (PPSAS) in Kuantan, Pahang.
In a filing to Bursa Malaysia on Tuesday, the group said the LOI was received by its 65%-owned unit Kreatif Sinar Gabungan Sdn Bhd on Monday.
"The board of directors of Tanah Makmur wishes to announce that Kreatif Sinar Gabungan had on Dec 8 accepted the LOI for the project dated Nov 24 signed by Datuk Seri Adnan Yaakob, the Chief Minister of Pahang, for and on behalf of the State Government of Pahang," it said.
The group said Kreatif Sinar Gabungan will be the developer and the power to appoint the developer for the project will be the State Government. It noted that 30% of the works for the implementation of the project are to be awarded to Bumiputera contractors from Pahang. (StarBiz)
Khazanah Nasional Bhd has aborted the plan to sell the majority stake in its 98 per cent-owned company, SilTerra (M) Sdn Bhd, to a China party after it was directed by the government to not divest the wafer foundry. “The sale to the Chinese party has been aborted, but SilTerra may still be up for sale to a Malaysian party,” an industry source said. The decision to sell the stake was due to RM7bn cumulative losses made by the company since 2011. “Apart from saving some 1,000 Malaysian jobs at SilTerra and its supporting industries, the government is also mindful that SilTerra’s operations are vital to training curriculums at local universities, along with the fact that the country’s semiconductor industry remains attractive to both new and existing investors,” noted a source. (BT)
Melewar Industrial Group, which is selling its steel business for RM70m, says it will depend on its engineering arm to drive growth and profitability. Group MD/CEO Azlan Abdullah said the company is expanding its engineering business in three core areas, which include engineering, procurement and construction (EPC). “We will also be aggressive in consultancy (which has power station development capabilities), and operation and maintenance,” he said. (BT)
Redtone International Bhd has won a RM88.6m contract from the Malaysian Communications and Multimedia Commission (MCMC) to build, operate and maintain radio access network (RAN) infrastructure in rural areas in Sarawak and Johor as part of MCMC's Time 3 programme. (Financial Daily)
I-Bhd has secured the expertise of Hilton Worldwide to manage its proposed 300-room hotel which will be built at the i-City ultrapolis in Shah Alam. I-Bhd said on Tuesday the four-star hotel is expected to come on stream in 2018 and it would enhance the reputation of i-City as a business-cum-leisure hub in the western corridor of Greater Kuala Lumpur. The hotel would be the second in the 72-acre freehold ultrapolis after the recent opening of the three-star Best Western i-City Shah Alam. (Starbiz)
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BMSB: Changes in shareholdings
Type of No of Ave Price
9-Dec-14 Date transaction securities Company (RM)
EPF 4/12 Disposed 4,460,800 PERISAI PETROLEUM
EPF 1/12-3/12 Disposed 2,640,200 TENAGA NASIONAL
EPF 4/12 Disposed 2,000,000 SIME DARBY
EPF 4/12 Disposed 1,800,000 AIRASIA
EPF 4/12 Disposed 1,685,000 MAH SING GROUP
EPF 4/12 Disposed 1,500,000 UEM SUNRISE
EPF 4/12 Disposed 1,151,300 EASTERN & ORIENTAL
EPF 4/12 Disposed 618,700 MBM RESOURCES
EPF 4/12 Disposed 606,700 IHH HEALTHCARE
EPF 4/12 Disposed 552,000 WCT HOLDINGS
EPF 4/12 Disposed 535,700 AEON CO. (M)
EPF 4/12 Disposed 477,400 PUBLIC BANK
EPF 4/12 Disposed 239,700 MALAYSIA AIRPORTS
EPF 3/12-4/12 Disposed 163,100 PETRONAS GAS
EPF 4/12 Disposed 97,800 DRB-HICOM
EPF 4/12 Disposed 1,100 SHELL REFINING
Skim Amanah Saham Bumiputera 1/12-3/12 Disposed 5,381,400 TENAGA NASIONAL
BERJAYA AUTO 2nd interim dividend - single tier 3.25 8-Dec-14 2-Jan-15 6-Jan-15 20-Jan-15
BERJAYA FOOD 1st interim dividend - single tier 2.50 9-Dec-14 6-Jan-15 8-Jan-15 22-Jan-15
MY E.G. SERVICES Final dividend - single tier 2.00 24-Nov-14 6-Jan-15 8-Jan-15 30-Dec-14
TOP GLOVE Final dividend - single tier 9.00 11-Nov-14 12-Jan-15 14-Jan-15 29-Jan-15
BENALEC HOLDINGS Final dividend - single tier 0.30 27-Nov-14 26-Jan-15 28-Jan-15 23-Feb-15
KUALA LUMPUR KEPONG Final dividend - single tier 40.00 19-Nov-14 19-Feb-15 23-Feb-15 17-Mar-15
SOURCES: BMSB
BMSB: New Listing
Company Issue price Listing sought Tentative
Public Issue Offer for sale Private placement listing date
E.A.TECHNIQUE 0.65 114,000,000 15,000,000 93,800,000 Main Market 11-Dec-14
KRONOLOGI ASIA 0.29 59,247,000 - - ACE Market 15-Dec-14
ONLY WORLD GROUP 0.88 56,408,900 - 43,158,900 Main Market 18-Dec-14
No of shares
SOURCES: BMSB
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December 10, 2014
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Corporate Actions
December 2014
SUN MON TUE WED THU FRI SAT
1 2 3 4 5 6
External Trade, External Reserves
(month-end data)
7 8 9 10 11 12 13
Berjaya Auto 2Q SapuraKencana 3Q, Berjaya Food 2Q
Eco World 13-mths results & briefing
Astro 3Q & conf. call, Industrial Production
14 15 16 17 18 19 20
SP Setia 4Q CPI
21 22 23 24 25 26 27
Foreign Reserves
(mid-month data)
Christmas Day
28 29 30 31
Money Supply
Source: Company, BNM, DOS, CIMB estimates
SOURCES: Company, BNM, DOS, CIMB estimates
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December 10, 2014
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Corporate Actions
January 2015
SUN MON TUE WED THU FRI SAT
1 2 3
New Year Prophet Muhammad’s Birthday
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
BNM OPR
Source: Company, BNM, DOS, CIMB estimates
SOURCES: Company, BNM, DOS, CIMB estimates
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December 10, 2014
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Information in this report is a summary derived from CIMB individual research reports. As such, readers are directed to the CIMB individual research report or note to review the individual Research Analyst's full analysis of the subject company. Important disclosures relating to the companies that are the subject of research reports published by CIMB and the proprietary positions by CIMB and shareholdings of its Research Analysts’ who prepared the report in the securities of the company(s) are available in the individual research report.
The information contained in this research report is prepared from data believed to be correct and reliable at the time of issue of this report. CIMB may or may not issue regular reports on the subject matter of this report at any frequency and may cease to do so or change the periodicity of reports at any time. CIMB is under no obligation to update this report in the event of a material change to the information contained in this report. This report does not purport to contain all the information that a prospective investor may require. CIMB or any of its affil iates does not make any
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guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Neither CIMB nor any of its affiliates nor its related persons shall be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
This report is general in nature and has been prepared for information purposes only. It is intended for circulation amongst CIMB and its affiliates’ clients generally and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. The information and opinions in this report are not and should not be construed or considered as an offer, recommendation or solicitation to buy or sell the subject securities, related investments or other financial instruments thereof.
Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives, financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before participating in any transaction in respect of the securities of company(ies) covered in this research report. The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors.
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This publication is strictly confidential and is for private circulation only to clients of CHK. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CHK. Unless permitted to do so by the securities laws of Hong Kong, no person may issue or have in its possession for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the securities covered in this report, which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong).
CIMB Securities Limited does not make a market on the securities mentioned in the report.
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The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of CIMB India and they have received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues, client feedback and competitive factors. Research analysts', strategists' or economists' compensation is not linked to investment banking or capital markets transactions performed or proposed to be performed by CIMB India or its affiliates.
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This publication is strictly confidential and is for private circulation only to clients of CIMBI. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBI. Neither this report nor any copy hereof may be distributed in Indonesia or to any Indonesian citizens wherever they are domiciled or to Indonesia residents except in compliance with applicable Indonesian capital market laws and regulations.
Malaysia: This report is issued and distributed by CIMB Investment Bank Berhad (“CIMB”). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMB has no obligation to update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CIMB. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB.
New Zealand: In New Zealand, this report is for distribution only to persons whose principal business is the investment of money or who, in the
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course of, and for the purposes of their business, habitually invest money pursuant to Section 3(2)(a)(ii) of the Securities Act 1978.
Singapore: This report is issued and distributed by CIMB Research Pte Ltd (“CIMBR”). Recipients of this report are to contact CIMBR in Singapore in respect of any matters arising from, or in connection with, this report. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBR has no obligation to update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only. If the recipient of this research report is not an accredited investor, expert investor or institutional investor, CIMBR accepts legal responsibility for the contents of the report without any disclaimer limiting or otherwise curtailing such legal responsibility. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBR..
As of December 9, 2014, CIMBR does not have a proprietary position in the recommended securities in this report.
CIMB Securities Singapore Pte Ltd and/or CIMB Bank does not make a market on the securities mentioned in the report.
South Korea: This report is issued and distributed in South Korea by CIMB Securities Limited, Korea Branch ("CIMB Korea") which is licensed as a cash equity broker, and regulated by the Financial Services Commission and Financial Supervisory Service of Korea.
The views and opinions in this research report are our own as of the date hereof and are subject to change, and this report shall not be considered as an offer to subscribe to, or used in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of financial investment instruments and it is not intended as a solicitation for the purchase of any financial investment instrument.
This publication is strictly confidential and is for private circulation only, and no part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB Korea.
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Taiwan: This research report is not an offer or marketing of foreign securities in Taiwan. The securities as referred to in this research report have not been and will not be registered with the Financial Supervisory Commission of the Republic of China pursuant to relevant securities laws and regulations and may not be offered or sold within the Republic of China through a public offering or in circumstances which constitutes an offer or a placement within the meaning of the Securities and Exchange Law of the Republic of China that requires a registration or approval of the Financial Supervisory Commission of the Republic of China.
Thailand: This report is issued and distributed by CIMB Securities (Thailand) Company Limited (CIMBS). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBS has no obligation to update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CIMBS. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBS.
CIMB Securities (Thailand) Co., Ltd. may act or acts as Market Maker and issuer including offering of Derivative Warrants Underlying securities of the following securities. Investors should carefully read and study the details of the derivative warrants in the prospectus before making investment decisions.
The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information.
The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CIMBS does not confirm nor certify the accuracy of such survey result.
Score Range: 90 - 100 80 - 89 70 - 79 Below 70 or No Survey Result
Description: Excellent Very Good Good N/A
United Arab Emirates: The distributor of this report has not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities or governmental agencies in the United Arab Emirates. This report is strictly private and confidential and has not been reviewed by, deposited or registered with UAE Central Bank or any other licensing authority or governmental agencies in the United Arab Emirates. This report is being issued outside the United Arab Emirates to a limited number of institutional investors and must not be provided to any person other than the original recipient and may not be reproduced or used for any other purpose. Further, the information contained in this report is not intended to
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lead to the sale of investments under any subscription agreement or the conclusion of any other contract of whatsoever nature within the territory of the United Arab Emirates.
United Kingdom and Europe: In the United Kingdom and European Economic Area, this report is being disseminated by CIMB Securities (UK) Limited (“CIMB UK”). CIMB UK is authorised and regulated by the Financial Conduct Authority and its registered office is at 27 Knightsbridge, London, SW1X 7YB. This report is for distribution only to, and is solely directed at, selected persons on the basis that those persons: (a) are persons that are eligible counterparties and professional clients of CIMB UK; (b) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”); (c) are persons falling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Order; (d) are outside the United Kingdom; or (e) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with any investments to which this report relates may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This report is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this report relates is available only to relevant persons and will be engaged in only with relevant persons.
Only where this report is labelled as non-independent, it does not provide an impartial or objective assessment of the subject matter and does not constitute independent "investment research" under the applicable rules of the Financial Conduct Authority in the UK. Consequently, any such non-independent report will not have been prepared in accordance with legal requirements designed to promote the independence of investment research and will not subject to any prohibition on dealing ahead of the dissemination of investment research.
United States: This research report is distributed in the United States of America by CIMB Securities (USA) Inc, a U.S.-registered broker-dealer and a related company of CIMB Research Pte Ltd, CIMB Investment Bank Berhad, PT CIMB Securities Indonesia, CIMB Securities (Thailand) Co. Ltd, CIMB Securities Limited, CIMB Securities (Australia) Limited, CIMB Securities (India) Private Limited, and is distributed solely to persons who qualify as "U.S. Institutional Investors" as defined in Rule 15a-6 under the Securities and Exchange Act of 1934. This communication is only for Institutional Investors whose ordinary business activities involve investing in shares, bonds and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major Institutional Investor must not rely on this communication. The delivery of this research report to any person in the United States of America is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein. CIMB Securities (USA) Inc, is a FINRA/SIPC member and takes responsibility for the content of this report. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CIMB Securities (USA) Inc.
CIMB Securities (USA) Inc does not make a market on the securities mentioned in the report.
Other jurisdictions: In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is only for distribution to professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.
Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (Thai IOD) in 2014.
AAV – Very Good, ADVANC – Very Good, AEONTS – not available, AMATA - Good, ANAN – Very Good, AOT – Very Good, AP - Good, ASK – Very Good, ASP – Very Good, BANPU – Very Good , BAY – Very Good , BBL – Very Good, BCH – not available, BCP - Excellent, BEAUTY – Good, BEC - Good, BECL – Very Good, BGH - not available, BH - Good, BIGC - Very Good, BJC – Good, BLA – Very Good, BMCL - Very Good, BTS - Excellent, CCET – Good, CENTEL – Very Good, CHG – not available, CK – Very Good, CPALL – not available, CPF – Very Good, CPN - Excellent, DELTA - Very Good, DEMCO – Good, DTAC – Very Good, EA - Good, ECL – not available, EGCO - Excellent, GFPT - Very Good, GLOBAL - Good, GLOW - Good, GRAMMY - Excellent, HANA - Excellent, HEMRAJ – Very Good, HMPRO - Very Good, ICHI - not available, INTUCH - Excellent, ITD – Good, IVL - Excellent, JAS – not available, JUBILE – not available, KAMART – not available, KBANK - Excellent, KCE - Very Good, KGI – Good, KKP – Excellent, KTB - Excellent, KTC – Good, LH - Very Good, LPN – Very Good, M - not available, MAJOR - Good, MAKRO – Good, MBKET – Good, MC – Very Good, MCOT – Very Good, MEGA – Good, MINT - Excellent, OFM – Very Good, OISHI – Good, PS – Very Good, PSL - Excellent, PTT - Excellent, PTTEP - Excellent, PTTGC - Excellent, QH – Very Good, RATCH – Very Good, ROBINS – Very Good, RS – Very Good, SAMART - Excellent, SAPPE - not available, SAT – Excellent, SAWAD – not available, SC – Excellent, SCB - Excellent, SCBLIF – Good, SCC – Very Good, SCCC - Good, SIM - Excellent, SIRI - Good, SPALI - Excellent, STA – Very Good, STEC - Good, SVI – Very Good, TASCO – Good, TCAP – Very Good, THAI – Very Good, THANI – Very Good, THCOM – Very Good, THRE – not available, THREL – Good, TICON – Good, TISCO - Excellent, TK – Very Good, TMB - Excellent, TOP - Excellent, TRUE – Very Good, TTW – Very Good, TUF - Good, VGI – Very Good, WORK – not available.
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CIMB Recommendation Framework
Stock Ratings Definition:
Add The stock’s total return is expected to exceed 10% over the next 12 months.
Hold The stock’s total return is expected to be between 0% and positive 10% over the next 12 months.
Reduce The stock’s total return is expected to fall below 0% or more over the next 12 months.
The total expected return of a stock is defined as the sum of the: (i) percentage difference between the target price and the current price and (ii) the forward net dividend yields of the stock. Stock price targets have an investment horizon of 12 months.
Sector Ratings Definition:
Overweight An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation.
Neutral A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation.
Underweight An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation.
Country Ratings Definition:
Overweight An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark.
Neutral A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark.
Underweight An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark.
*Prior to December 2013 CIMB recommendation framework for stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand, Jakarta Stock Exchange, Australian Securities Exchange, Taiwan Stock Exchange and National Stock Exchange of India/Bombay Stock Exchange were based on a stock’s total return relative to the relevant benchmarks total return. Outperform: expected to exceed by 5% or more over the next 12 months. Neutral: expected to be within +/-5% over the next 12 months. Underperform: expected to be below by 5% or more over the next 12 months. Trading Buy: expected to exceed by 3% or more over the next 3 months. Trading Sell: expected to be below by 3% or more over the next 3 months. For stocks listed on Korea Exchange, Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Outperform: Expected positive total returns of 10% or more over the next 12 months. Neutral: Expected total returns of between -10% and +10% over the next 12 months. Underperform: Expected negative total returns of 10% or more over the next 12 months. Trading Buy: Expected positive total returns of 10% or more over the next 3 months. Trading Sell: Expected negative total returns of 10% or more over the next 3 months.
