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2022-08-09 03:09:23 Technical tracker - HLIB Retail Research –9 Aug 2022

D&O: Growth remains intact

Leading automotive LED manufacturer. Through its principal operating subsidiary Dominant Opto Technologies Sdn Bhd, D&O is a world-leading surface mount LED manufacturer for the global automotive industry. It offers a comprehensive range of LED packaging solutions under the "DOMINANT" brand name catering to both the interior and exterior automotive lighting.

Improving car sales outlook in China. Being the world's largest automotive market, the China automobile industry association had downgraded China's 2022 automotive sales to 27m units (+3% YoY) from 27.5m as the stringent “zero covid-19” policy has caused lacklustre 1H22 automotive sales. That said, China's June automobile sales passenger car data rebounded strongly at 2.22 million (+41% YoY), and the momentum is expected to extend into 3Q22 with the help of government stimulus policy. This includes halving the purchases tax for <300k yuan gasoline cars to 5%, offering subsidies to consumers to trade-in gasoline vehicles for EVs, and some cities expanded quotas on car ownership.

Increasing usage of LEDs in vehicle. D&O's long-term growth will be supported by the increasing usage of LEDs in vehicles. This is reflected in newly launched vehicles, which now equips more LEDs content in the way of bigger screen and multi-screen, interior and exterior applications. This trend is more notable in EVs, where the design is more stylish and equipped with ambient lighting and a bigger screen to have a more futuristic look. For instance, the BMW ix all-electric SUV flagship model features a large 14.9-inch infotainment display combined with a 12.3-inch digital gauge cluster. We note that this trend also applies to the mid-range and mass market cars nowadays.

All in, market consensus is anticipating D&O's core PATAMI to register a strong FY21-23 CARG of 26.9%, while the management is hopeful for a double-digit YoY revenue and earnings growth in the remaining quarters of 2022.

Pending double bottom breakout. Technically, D&O is pending for a double bottom breakout. A successful breakout above the RM4.15 neckline will indicate a downtrend reversal and spur the price toward RM4.46-4.75-5.04 level. Cut loss at RM3.63.

Collection range: RM 3.79-3.85-3.97

Upside targets: RM 4.38-4.46-4.73

Cut: RM 3.63

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D&O：亮丽前景维持不变

数一数二的汽车 LED 制造商。通过其主要运营子公司 Dominant Opto Technologies Sdn Bhd，D&O 是全球汽车行业数一数二的表面贴装 LED 制造商。它以“DOMINANT”品牌提供全面的 LED 封装解决方案，以满足汽车内部和外部照明的需求。

中国汽车销售前景改善。作为全球最大的汽车市场，中国汽车工业协会已将中国 2022 年的汽车销量从 2750 万辆下调至 2700 万辆（按年增长 3%），因为中国实施严格的“零 covid-19”政策导致 1H22 的汽车销量低迷。尽管如此，中国 6 月份汽车销售乘用车数据强劲反弹至 222 万辆（按年增长 41%），这增长势头有望在政府刺激政策的帮助下延续至 22 年第三季度。其中包括将30万元以下的汽油车购置税减半至5%，为消费者提供以旧换新汽油车为电动汽车的补贴，以及一些城市扩大汽车保有量配额。

日益增长的 LED 运用。 D&O 的长期增长将受到车辆中 LED 使用量增加的支持。这体现在新推出的车辆上，现在以更大屏幕和多屏、内外应用的方式配备了更多的LED。这种趋势在电动汽车中更为明显，因为其设计更加时尚，配备了环境照明和更大的屏幕，具有更未来感的外观。例如，BMW ix 全电动 SUV 旗舰车型配备 14.9 英寸大型信息娱乐显示屏和 12.3 英寸数字仪表组。我们注意到，这种趋势也适用于当今的中档和大众市场的汽车。总而言之，市场共识预计 D&O 的核心 PATAMI 将录得 强劲 FY21-23 CARG 26.9%，而管理层则希望在 2022 年剩余季度实现双位数的同比收入和盈利增长。

等待双底突破。从技术上而言，D&O 正在等待双底突破。股价若成功突破 RM4.15 颈线将表明下跌趋势的反转，并将价格推向 RM4.46-4.75-5.04 水平。投资者可把止损设置在 RM3.63。

买入范围：RM 3.79-3.85-3.97

上行目标：RM 4.38-4.46-4.73

止损：RM 3.63

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2022-08-02 03:00:02 Technical tracker - HLIB Retail Research –2 Aug 2022

DNEX: Rough diamond

Undemanding valuation. Weighed by the global technology stock sell-down and the imposition of an additional 25% windfall tax to oil and gas producers in the British North Sea, DNEX share price has corrected 38.3% from a 52-week high of RM1.33 to RM0.82 yesterday. With this, DNEX is currently trading at an undemanding 11.9x FY23 P/E, which is 65% lower than KLTEC’s 5-year average of 34.2x. This discount is unwarranted in our view, given DNEX being the only listed-co on Bursa Malaysia involved in both E&P and wafer manufacturing (Oil+Tech proxy). As such, we advocate buying on dip with a fair value of RM1.69.

Growth remains intact. While the additional 25% windfall tax to oil and gas producers in the British North sea will impact Ping Petroleum in the way of higher tax expenses, the impact will be partially offset by the new 80% investment allowance (#Figure1; source). On top of that, factors such as higher oil prices (upcoming review period average: USD112 vs 2QFY22 realized prices: USD103.1) and the depreciating ringgit (upcoming review period average: 4.35 vs 3QFY22: 4.19) will partially offset the higher taxes as well. On Siltera, ASPs per mask layer is anticipated to stay on a rising trajectory, and management expects it to hit USD25 by the end of 2022 (vs 3QFY22: USD23.6) due to the ongoing chip shortage. Thus, after considering the abovementioned factors, we think DNEX is on track to post commendable earnings.

In the next couple of years, we are even more excited and upbeat about DNEX’s prospects, underpinned by (i) the commercialisation of the Avalone field and (ii) Siltera’s new capacity kicks in. The former will quadruple Ping Petroleum’s current output in FY25, while the latter will increase Siltera’s capacity to 10m mask layers in FY23 (from 8.8m mask now) for emerging technology whose ASPs is 3x higher than their core products. All in, we are projecting DNEX’s core net profit to register a strong FY22-24 CAGR of 18%.

Pending a rectangle breakout. Technically, DNEX is poised for a rectangle breakout after hovering near its strong support area of RM0.75-0.76. A successful breakout above RM0.83 will spur the prices toward RM0.91-1.00-1.10 level, creating a new uptrend leg. Cut loss at RM0.70.

Collection range: RM 0.76-0.78-0.82

Upside targets: RM 0.91-1.00-1.10

Cut: RM 0.70

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DNEX：隐秘的钻石

估值不高。受全球科技股抛售以及对英国北海油气生产商征收额外 25% 暴利税的拖累，DNEX 股价已从 52 周高点 RM1.33修正 38.3% 至 RM0.82。因此，DNEX 目前的交易价格为FY23 市盈率11.9 倍，比 KLTEC 的 5 年平均值 34.2 倍低 65%。我们认为这个折扣是不合理的，因为 DNEX 是唯一一家在大马交易所上市的公司同时涉及勘探与生产和晶圆制造（Oil+Tech 代理）的公司。因此，HLIB Research给于RM 1.69的合理价，并推荐逢低买入。

增长保持不变。虽然英国对北海的石油和天然气生产商征收的额外 25% 的暴利税将影响 Ping Petroleum 的税收支出增加，但该影响将被新的 80% 投资免税额部分抵消。除此之外，油价上涨（即将到来的审查期平均值：USD112 vs 3QFY22 实际价格：USD103.1）和令吉贬值（即将到来的审查期平均值：4.35 vs 3QFY22：4.19）等因素将部分抵消较高的税收。在 Siltera 方面，每个晶片掩膜版层的 ASP 预计将保持上升趋势，由于持续的芯片短缺，管理层预计到 2022 年底将达到 25 美元（22 财年第二季度：23.6 美元）。因此，在考虑上述因素后，我们认为 DNEX 有望发布可喜的业绩。

在接下来的几年里，我们对 DNEX 的前景更乐观，这得益于（i）Avalone 油田的开跑和（ii）Siltera 的新产能启动。前者将使 Ping Petroleum 在 FY25 的当前产量翻两倍，而后者将在 23 财年将 Siltera 的 晶片掩膜版层产能从现在的 880 万层增加到 1000 万层， ASP 比其核心产品高 3 倍。总而言之，我们预计 DNEX 的核心净利润将录得FY22-24 复合年增长率18% 。

等待矩形突破。从技术上讲，DNEX 在 RM0.75-0.76 的强劲支撑区域附近徘徊后准备突破矩形形态。股价若成功突破 RM0.83 将推动价格向 RM0.91-1.00-1.10 水平，开启上升趋势。投资者可把止损设置于 RM0.70。

买入范围：RM 0.76-0.78-0.82

上行目标：RM 0.91-1.00-1.10

止损：RM 0.70

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2022-07-29 17:55:23 就在现在进行当中 Workshop@Bursa2022 将与 Hong Leong Investment Bank 携手联办网络研讨会

标题: 逆市中的投資佈局
日期: 2022年7月30日（星期六）
时间: 上午10.30 – 下午12.00
演讲嘉宾: Ng Jun Sheng, 豐隆投资银行零售研究主管 & Sam Jun Kit, 豐隆投资银行零售分析师

语言: 华语

参加网络研讨会链接：

https://hlib5.webex.com/hlib5/j.php?MTID=mf03f5478fb11ce6f82dcd659bef09b20

Meeting number: 2557 511 8532
Password: MO2022

欢迎大家现在可以直接点击以上链接即可参加网络研讨会。 Open / Comment

2022-06-23 03:51:43 Stock Watch - HLIB Retail Research – 23 June
FLBHD- A value, dividend and export play

Despite the shipment delay due to US port congestion, FLB’s 1QFY22 results were above our expectation. We believe FLB will register stronger QoQ earnings in 2Q in anticipation of higher realized plywood prices to offset rising input costs. On top of the bread-and-butter US market, the Russian-Ukraine war has opened up a new window for FLB to penetrate into the EU markets. We raise our FY22-23 earnings forecasts by 21% and 11% and subsequently raise our FV to RM 2.26 based on 8.6x FY23 EPS of 26.6sen and supported by strong netcash per share of RM1.03 and handsome FY2023 DY of 8.8%

FLBHD——具有投资价值和高股息的出口受惠公司

尽管美国港口拥堵导致发货延迟，FLB 的 2022 财年第一季度业绩仍然超出了我们的预期。 我们认为 FLB 将在第二季度取得得更强劲的业绩表现，因为胶合板价格的上涨已经抵消了不断上涨的成本。 除了美国市场，俄乌战争间接性为FLBHD打开了新的窗口进入欧盟市场。 我们将 FY22-23 的盈利预测分别上调 21% 和 11%，基于FY23财年 8.6 倍,EPS 26.6 仙, 每股净现金达RM1.03以及FY23财年高达8.8%的股息率，我们将目标价上调至 RM2.26 。

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2022-06-22 03:56:16 Technical tracker - HLIB Retail Research – 22 June 2022

MYEG: An excellent e-government and reopening proxy

E-service provider. Listed in 2005, MYEG is Malaysia’s leading digital services company, providing a wide range of government (concession) and commercial services. These services include facilitating online payments for government services such as the renewal of vehicle road tax, foreign worker permits, and digital health travel pass system. Over the years, MYEG has been entrusted by the Malaysian government to provide vital services for JPJ, JIM, KKM, and more. Beyond Malaysia, MYEG has expanded its footprint into the Philippines, Indonesia, and Bangladesh markets.

Still growing strong. Although the contribution from MYEG's healthcare segment is expected to taper off following the gradual removal of Covid-19 SOPs (no quarantine or testing needed for fully vaccinated tourists), we believe this will be cushioned by MYEG's immigration segment as well as the road transport segments, which are deemed to be a prime beneficiary of border reopening. In particular, MYEG Immigration segment's matching and permit renewal services will likely to get a strong boost following the return of foreign workers amid acute labour shortages across most sectors. This is reflected by the group's strong 50k backlog orders for its foreign workers' matching services (vs. 24k headcount per year during pre-pandemic).

Also, with the commencement of the proof of concept (POC) for the automated driving test and training system, the official rollout of JPJ's e-testing system is expected to deliver ~RM50-60m earnings p.a. to MYEG. On the other hand, Zetrix's Blockchain-chain cross-border trade service platform that is slated to launch by July will allow MYEG to monetize Zetrix by charging gas fees on transactions, tracking fees on the supply chain traceability, as well as transaction fees on cross-border trades

Grossly oversold. After plunging -20% YTD, MYEG is currently trading at an undemanding 16.7x FY23 P/E (33.2% lower than its pre-pandemic 5-year average of 25x). Technically, the hammer pattern formation on 17th June coupled with the oversold RSI indicate a potential rebound going forward. A successful breakout above RM0.90 will spur the prices toward RM0.92-0.96-1.00. Cut loss at RM0.79.

Collection range: RM0.80-0.83-0.86

Upside targets: RM0.90-0.95-0.99

Cut: RM0.79

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MYEG：一家优秀的电子服务提供商以及复苏股的代表

电子服务提供商。 MYEG 于 2005 年上市，是马来西亚领先的数字服务公司，为政府（特许权）和商业提供服务。这些服务包括促进政府服务的在线支付，例如车辆道路税的更新、外国工人许可证和数字健康旅行通行证系统。多年来，MYEG 一直受马来西亚政府委托，为 JPJ、JIM、KKM 等提供重要服务。除了马来西亚，MYEG 已将其业务扩展到菲律宾、印尼和孟加拉市场。

扩张仍在持续。尽管随着 Covid-19 SOP 的逐步取消（完全接种疫苗的游客不需要隔离或测试），MYEG 医疗保健部门的盈利贡献预计将逐渐减少，但我们相信 MYEG 的移民部门和公路运输部门将缓冲这一方面，这是因为MYEG被认为是重新开放边境的主要受益者, 特别是在大多数行业面临严重劳动力短缺的情况下，随着外国工人的回归，MYEG 移民部门的许可证更新服务可能会得到强劲的推动。这反映在该集团为外籍人工匹配服务高达 50,000 多人（相比疫情前每年只达 24,000 名员工）。

此外，随着自动驾驶测试和培训系统概念验证 (POC) 的开始，JPJ 电子测试系统正式推出(预计将带来约 5000-6000 万令吉的年收益)。另一方面，计划于 7 月推出的 Zetrix 区块链跨境贸易服务平台将允许 MYEG 通过对交易收取能源费，供应链追溯费用，以及跨境贸易的交易费，以将Zetrix货币化。

严重超卖。在年初至今暴跌 -20% 后，MYEG 目前的交易价格为 16.7 倍 FY23 市盈率（比疫情前 5 年平均 25 倍低 33.2%）。从技术上而言，6 月 17 日的锤子形态的形成加上RSI 处于超卖阶段表明可能出现反弹。股价若成功突破 RM0.90 将推动价格上涨至 RM0.92-0.96-1.00。投资者可把止损设置在RM0.79。

买入范围：RM0.80-0.83-0.86

上行目标：RM0.90-0.95-0.99

止损：RM0.79

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2022-06-21 06:37:34 Come join our Advanced: Portal Training (Mandarin) webinar on Saturday, 25th June 2022 from 11:00am to 12.00pm!

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Mak Wai Leong is a Licensed Dealer Representative in Hong Leong Investment Bank. He graduated from Tunku Abdul Rahman University College with a Diploma in Accounting. This portal training is open to the public. Registration will close on 24th June 2022 (Friday), noon. Open / Comment

2022-06-20 09:54:28 Bullish Tracker Results for May 2022

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2022-06-15 11:59:31 Come join our 3Q2022 Market Outlook Webinar: Look beyond the headline headwinds on Saturday, 2nd July @ 10.30am - 12.00pm!

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2022-06-15 05:17:05 Dear Valued Client,

TRADE LONDON STOCK EXCHANGE SHARES ONLINE @ 0.20%* BROKERAGE RATE

Please be informed that effective 13 June 2022, all foreign share trading clients of Hong Leong Investment Bank Berhad will be able to trade London Stock Exchange shares through the HLeBroking online share trading portal with a brokerage rate of twenty basis points (0.20%*).

* Brokerage rate is subject to a minimum charge of GBP 25. We reserve the right at any time to change the brokerage rate.

Thank you.

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For more information, you may contact our HLIB Helpdesk Centre at 03-2080 8777 or email us at Helpdesk@hlib.hongleong.com.my Open / Comment