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AmWatch

6 May 2015
AmResearch Team
(603-2070 2444)
www.amesecurities.com.my

STOCK FOCUS OF THE DAY

BURSA MALAYSIA
KLCI
52-Week Range
Mkt Cap (RMb)
Daily Volume (m shares)
Daily Value (RMmil)

1,827.42 (+9.15)
1,671.82 - 1,896.23
1,744.06
2,016.18
2,361.78

TOP 5 GAINERS
Closing
Price (RM)
HLFG
AIRPORT
PPB
LAFMSIA
KLK

16.80
6.82
15.66
9.93
22.40

Chg
(RM)
0.60
0.37
0.32
0.28
0.26

TOP 5 LOSERS
Closing
Price (RM)

Chg
(RM)

47.00
66.52
6.60
14.52
25.60

-0.60
-0.46
-0.40
-0.34
-0.30

DLADY
BAT
BIPORT
AEONCR
UTDPLT

REGIONAL MARKETS
Market
KLCI
Singapore
Thailand
Philippines
Indonesia
Hong Kong
Korea
Taiwan
Japan
Dow Jones
Nasdaq

Index

1D

YTD

1,827.4
3,471.2
1,526.7
7,919.2
5,160.3
27,755.5
2,132.2
9,820.1
19,351.6
17,928.2
4,939.3

0.5%
-0.3%
0.3%
1.3%
0.4%
-1.3%
0.2%
-0.3%
0.1%
-0.8%
-1.5%

-2.1%
9.6%
17.6%
34.5%
20.7%
19.1%
6.0%
14.0%
19.9%
8.2%
18.3%

Close

1D

YTD

3.611
3.25
6.85

-0.4%
0.0%
0.0%

-10.2%
8.3%
3.8%

60.40

2.5%

-38.6%

2,083

0.6%

-19.0%

ECONOMIC STATISTICS

RM/US$
OPR (%)
BLR (% Maybank)
NYMEX Crude oil
US spot
(US$/barrel)
CPO spot price
(RM/tonne)

PP12260/06/2013(032378)

Hartalega Holdings : Entering a new growth phase

Buy

We reiterate BUY on Hartalega Holdings with an unchanged fair value of RM9.40/


share. We continue to peg our valuation to a fully-diluted FY16F PE of 27x.
Hartalega reported earnings of RM55mil (QoQ: +11%) in 4QFY15 to wrap up its FY15
with a net profit of RM210mil (YoY: -10%). This was in line with our and consensus
estimates, accounting for 99% and 97%, respectively.
It declared a 3rd single-tier interim dividend of 3 sen/share, bringing the total thus far
for FY15 to 9 sen/share. We expect a 4 sen/share final dividend to be announced during
its AGM in August. Yields are at ~2%.
Its EBITDA margin was lower by 2ppts QoQ and 4ppts YoY. This is however, still 7-8ppts
above its peers. Hartalegas earnings would have declined QoQ were it not for its much
lower effective tax rate of 18% in 4QFY15.
Given the availability of new capacity from NGC, the group has decided to decommission
its 10 lines (600mil installed capacity) at Plant 1 at Batang Berjuntai (RM3.1mil writeoff booked in 4QFY15) and convert the site into a warehouse. The plant was mainly
involved in the latex gloves production.
No change to our FY16F-FY17F earnings estimates for now. We maintain our view that
the progressive commissioning of NGC will provide fresh growth impetus to the stock.
We believe that the imminent US rate hike will continue to exert further downward
pressure on the RM. As such, we expect valuations of the rubber glove players to
remain inflated as investors seek a safe haven from the weakening RM and other GSTaffected industries. The stock is currently trading at a fully-diluted FY16F PE of 23x.
Others :
Malaysia Airports Holdings : Earnings dragged by ISG and klia2 costs

Hold

QUICK TAKE
CB Industrial : Receives RM74.9mil contract

NEWS HIGHLIGHTS
UEM Sunrise : Makes Roslan COO of development
Property sector : Desmond Lim sets benchmark for high-end apartments

Hold

AmWatch

6 May 2015

DIRECT BUSINESS TRANSACTIONS ON THE KLSE


Stock

Quantity
(000)

Price
(RM)

Turnover
(RM000)

BAHVEST
BOILERM
GENETEC
GENM
KEURO
KHEESAN
MAGNUM
NOVAMSC
PUC
RAPID
RPB
SGB
TEOSENG
TGOFFS
YNHPROP

3,000
15,000
50
86,677
350
632
1,100
50
50,000
601
1,300
32,300
300
3,109
210

0.880
1.470
0.195
4.300
1.050
0.720
2.700
0.220
0.140
5.500
0.380
0.420
1.970
0.300
1.950

2,640
22,050
10
372,711
368
455
2,970
11
7,000
3,306
494
13,566
591
933
410

Economic Calendar Release Date


Date Time
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015
05/06/2015

07:01
09:45
09:45
10:30
13:00
13:00
16:00
16:00
16:00
16:00
16:00
16:30
16:30
16:30
17:00
17:00
19:00
20:15
20:30
20:30
05/13

Country

Event

Months

Survey

Actual

Prior

United Kingdom
China
China
Hong Kong
India
India
EURO
EURO
Singapore
Singapore
Singapore
United Kingdom
United Kingdom
United Kingdom
EURO
EURO
United States
United States
United States
United States
Vietnam

BRC Shop Price Index YoY


HSBC China Composite PMI
HSBC China Services PMI
HSBC Hong Kong PMI
HSBC India Services PMI
HSBC India Composite PMI
Markit Eurozone Services PMI
Markit Eurozone Composite PMI
Automobile COE Open Bid Cat A
Automobile COE Open Bid Cat B
Automobile COE Open Bid Cat E
Official Reserves Changes
Markit/CIPS UK Services PMI
Markit/CIPS UK Composite PMI
Retail Sales MoM
Retail Sales YoY
MBA Mortgage Applications
ADP Employment Change
Nonfarm Productivity
Unit Labor Costs
Domestic Vehicle Sales YoY

Apr
Apr
Apr
Apr
Apr
Apr
Apr F
Apr F
06-May
06-May
06-May
Apr
Apr
Apr
Mar
Mar
01-May
Apr
1Q P
1Q P
Apr

-2.10%
51.8
52.3
49.6
53
53.2

-$924M
58.9
58.8
-0.20%
3.00%

189K
-2.20%
4.10%
63.20%

AmResearch Sdn Bhd

AmWatch

6 May 2015

News Highlights
UEM Sunrise Bhd (RM1.33 /share)
Makes Roslan COO of development
UEM Sunrise Bhd has promoted Datuk Roslan Ibrahim to take over the role of chief
operating officer in charge of development (COOD) effective Sept 1, as the property
developer seeks to boost slacking sales.
Roslan will replace outgoing COOD Lum Tuck Ming, who is leaving his post on Aug
15, a year ahead of his contract expiry.
As COOD, Roslans main task will be to make certain the overall achievement of
our project deliverables are met and ensuring smooth operations of the
organisation, which includes project planning and management, construction
management and stakeholder management, the company said in a statement.
This applies to UEM Sunrises projects in Malaysia and abroad, it added. Roslan
is currently the president director of PT Lintas Marga Sedaya, a 55% subsidiary of
UEM Group Bhd that is undertaking the 116km, RM4.4bil construction of the
Cikampek-Palimanan highway in Indonesia. StarBiz

Property sector
Desmond Lim sets benchmark for high-end apartments
The Pavillion group is setting a record of sorts as it has priced its high-rise serviced
residential units of its latest project - the Pavillion Suites along Jalan Bukit Bintang
starting from RM3,000 per sq ft.
The 51-storey project compriseds 383 one and two-bedroom service residential
and offers 450,000 sq ft of retail space on a gross floor area basis. On a net basis,
this is expected to be about 240,000 sq ft.
According to property sector executives, the details of the number of units taken up
so far have not been disclosed as the sales were only done on an invited basis.
The cheapest units are going for more than RM3mil each and there are takres for
them, said an executive. Starbiz

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Tel: (03)2070-2444 (research)
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Printed by
AmResearch Sdn Bhd (335015-P)
(A member of the AmInvestment Bank Group)
15th Floor Bangunan AmBank Group
55 Jalan Raja Chulan
50200 Kuala Lumpur
Tel: (03)2070-2444 (research)
Fax: (03)2078-3162

The information and opinions in this report were prepared by AmResearch Sdn Bhd. The investments discussed or
recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only
and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmResearch Sdn Bhd may
from time to time have a position in or with the securities mentioned herein. Members of the AmInvestment Group and their
affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The
information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been
taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or
complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this
report. All opinions and estimates included in this report constitute our judgement as of this date and are subject to change
without notice.
For AmResearch Sdn Bhd

Benny Chew
Managing Director

AmResearch Sdn Bhd

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