2021-08-18 04:01:50
Maybank Kim Eng Kopi-O (18 Aug 2021)
MKE Key Calls
Q&M Dental Group (QNM SP) - More Testing
2Q21 reported PATMI rose 23% YoY to SGD8.4m, which brings 1H21 earnings to SGD17.8m (+119% YoY) or about 50% of MKE/street consensus’ full-year estimates. It was a slight beat considering our/market expectation of a stronger 2H21, mainly due to its continued dental clinics expansion and ramping up of testing operation. While our EPS forecasts are largely unchanged, we raise our TP to SGD1.03 as we roll forward valuations to FY22E, still based on 22x P/E. Maintain BUY.
MY
o Yesterday’s rebound could be short-lived as declines in Wall Street and falling commodity prices weigh. All eyes will also be on local politics after political leaders seek audiences with the King. Technically, we expect the benchmark index to range between 1,500 and 1,550 today, with supports at 1,470 and 1,450.
o
UEM Sunrise (UEMS MK): UEMS may not be able to turnaround in 2021 due to the imposition of National Recovery Plan phase 1 (NRP1) since 1 June 2021 that leads to slower work progress. Sales wise, management is confident to hit its MYR1.2b sales target for 2021 with the launch of a new project in 4Q21. We revised our earnings forecasts by -114% to +2%. We maintain our MYR0.43 TP (on 0.3x FY22 PBV) but U/G UEMS to tactical BUY in view of the upside potential of 20% to our TP after the recent selldown in UEMS.
o
Pintaras (PINT MK): Its wholly-owned subsidiary Pintary International Pte. Ltd., through its wholly-owned subsidiary Pintary Foundations Pte. Ltd. has secured three new piling contracts worth SGD45.5m in total (approximately MYR142m). This is PINT’ first contract win in FY6/22. More importantly, it signifies that its Singapore exposure continues to contribute positively. Stock trades at 7.1x consensus FY6/22 EPS.
o
Willowglen (WLW MK): Its wholly-owned subsidiary Willowglen Services Pte Ltd was awarded two contracts worth approximately MYR24.4m in aggregate. With the latest award, WLW has secured approximately MYR111m worth of projects YTD, equivalent to about 76% of FY20 revenue. Its SCADA solutions are used in multiple industries. Stock trades at 30.7x annualised 1Q21 EPS. WLW is also sitting on a net cash of MYR78.5m at end-Mar 2021, which is equivalent to about 37% of share price.
For more stock ideas and market flows, access Market Insight on Maybank Trade on Apple Store and Google Play now.
Stay Ahead, Trade Smart.
211 viewsAmirol Abu Bakar, 01:01
I
