Maybank IBG Kopi-O (29 Aug 2022) Nikkei 28641.4 0.57% | Info Pelaburan Saham - Maybank Investment Bank Ipoh

Maybank IBG Kopi-O (29 Aug 2022)

Nikkei 28641.4 0.57%
Kospi 2481.0 0.15%
SSE 3236.2 -0.31%
HSI 20170.0 1.01%
TWSE 15278.4 0.52%
SET 1644.8 0.08%
JCI 7135.2 -0.54%
STI 3249.5 0.05%
KLCI 1500.3 0.32%

Maybank IBG Key Calls
UMW Holdings - 1H22: Above expectation (UMWH MK, CP: MYR3.06, BUY, TP: MYR5.00)
1H22’s core net profit accounted for 59% of our FY estimate, with 2Q22 replicating 1Q22’s performance as it continued to enjoy strong vehicle sales from the SST holidays. With 2H expected to match 1H, underpinned by the strong backlog (60k units), our upgraded FY22 earnings (+21%) reflect higher Toyota sales expectations (+22%). Our TP is unchanged, as we roll over valuations to FY23, pegged to 16x PER (-0.5 SD valuation).

Technicals
The KLCI is set for a cautious start after the selloff on Wall Street last Friday. Hawkish rhetoric from Jerome Powell on further monetary tightening as well as concerns over recession will hurt appetite for risky assets. Locally, sentiment will also stay wary as earnings season is coming to an end this week. Technically, we expect the benchmark index to range between 1,465 and 1,515 today, with supports at 1,465 and 1,432.

Trading Ideas
Padini (PAD MK, CP: MYR3.26, BUY, TP: MYR4.35):
Higher-than-expected sales and better product mix attributed to PAD’s earnings outperformance. We believe that PAD’s mass market appeal and relatively affordable product offering could partially buffer the impact from subdued consumer spending in the near-term. Our FY23 earnings estimates are lifted by 13% but we leave FY24E estimates unchanged and introduce our FY25E forecasts. Maintain BUY with a higher TP of MYR4.35 based on unchanged 20x CY23E PER (about +0.5SD to mean).

SDS (SDS MK, CP: MYR0.48, Not Rated):
Reported a PATMI of MYR4.5m in 1QFY3/23 vs. a loss after tax of MYR0.5m a year ago. SDS was in the red in 1QFY3/22 as its financial performance was affected by a nationwide lockdown which resulted in lower consumers’ traffic and fixed overhead expenses. Notably, the fasting month also fell in 1QFY3/22. SDS’ 1QFY3/23 results benefitted from the reopening of borders between Malaysia and Singapore. Its retail outlets experienced higher influx of customers and same-store sales growth. Stock trades at 11.4x annualized

Scicom (SCIC MK, CP: MYR1.00, Not Rated):
4QFY6/22 net profit jumped 41% YoY, lifting FY6/22 PATMI to MYR31.5m (+22% YoY). Excluding one-offs (mainly impairment loss on receivable in FY6/21), its FY6/22 core net profit rose 9% YoY. SCIC also declared a fourth interim single tier dividend of 2 sen per share. The stronger FY6/22 results stemmed mainly from: 1) a 23% YoY increase in Business Process Outsourcing revenue thanks to higher billings from existing clients and newly secured business; 2) a 5.8x YoY jump in Education revenue arising from the commercialization of its training modules e Learning Management System; and 3) the absence of impairment loss. Stock trades at 10.9x FY6/23E consensus EPS.

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