2021-09-02 04:10:18
Maybank Kim Eng Kopi-O (2 Sep 2021)
Nikkei 28451.0 1.29%
Kospi 3207.0 0.24%
SSE 3567.1 0.65%
HSI 26028.3 0.58%
TWSE 17474.0 -0.09%
SET 1634.5 -0.26%
JCI 6090.9 -0.97%
STI 3087.8 1.07%
KLCI 1586.9 -0.90%
MKE Key Calls
Malaysia Banking - 3.1% YoY loan growth in July
Loan growth of 3.2% YoY in July trails our full-year forecast of 3.8% but we expect momentum to gather pace, particularly in 4Q21, as the economy opens gradually in phases. We continue to be NEUTRAL the banking sector, with BUYs on Public Bank, AMMB, RHB, HLFG and BIMB.
MY
o The KLCI may stage a rebound today but sentiment will remain cautious after oil price ended lower overnight. Technically, the benchmark index is at a crossroads. Recent rebound lifted the KLCI above all key SMAs but yesterday’s correction dragged the index towards the 200-day SMA. A fall below this moving average will drag the index into the bearish mode again. For trading, we expect the KLCI to range between 1,550 and 1,600 today, with supports at 1,555 and 1,527.
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AEON Co. (M) (AEON MK): We remain positive on AEON as a key beneficiary to the eventual reopening of the economy in tandem with higher vaccination rates in Malaysia. No change to earnings estimates. Maintain BUY with unchanged TP of MYR1.74 (22x FY22 PER, -0.5SD to mean). At 18x FY22 PER, AEON is trading at undemanding valuations of -1SD to mean.
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Solarvest (SOLAR MK): Secured a large-scale solar (LSS) project worth MYR175m under the LSS@Mentari programme. The project is for the development of a LSS plant in Chuping, Perlis. Under the contract, the group will undertake main engineering, procurement, construction and commission works for the 50MW solar farm. With the latest order, it has secured c.MYR371m worth of jobs under the LSS@Mentari programme. This also lifts the outstanding order book to a new high of MYR583m, equivalent to about 2.6x its FY3/21 revenue. Stock trades at 22.8x consensus FY3/23 EPS.
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Pekat (PEKAT MK): Its wholly-owned subsidiary Pekat Solar S/B was awarded a MYR18.1m contract by MFP Solar S/B, a 55:45 JV be between *Mega First (MFGB MK, CP: MYR3.56, Not Rated)* and Pekat, to design, install and commission solar PV systems at 16 sewerage treatment plants owned by Indah Water Konsortium S/B across Selangor, Kuala Lumpur, Putrajaya and Penang. With the latest award, it would lift Pekat’s unbilled order book to an estimated MYR182m, equivalent to approximately 1.4x its FY20 revenue. Stock trades at 44.4x annualized 1H21 EPS.
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150 viewsAmirol Abu Bakar, 01:10
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