Maybank IBG Kopi-O (24 Jun 2022) Nikkei 26171.3 0.08% | ShareNews2U

Maybank IBG Kopi-O (24 Jun 2022)

Nikkei 26171.3 0.08%
Kospi 2314.3 -1.22%
SSE 3320.1 1.62%
HSI 21273.9 1.26%
TWSE 15176.4 -1.12%
SET 1557.6 -0.15%
JCI 6998.3 0.20%
STI 3092.8 -0.02%
KLCI 1431.1 0.00%

Maybank IBG Key Calls
Portfolio Seasons: The Calvary Isn’t Here Yet
S&P 500 is down 23% from its peak and has de-rated by 26% in terms of forward PE, compared to the average index and valuation drawdown of 40% and 27% respectively over the past three recessions. Inflation expectations peaked at 3% in April, alleviating some stagflation and growth risks in 2H22. 16 out of 24 MIBG model portfolios outperform their benchmarks. Quality style stocks – high ROE, low debt/equity and low earnings variability presents the best risk-reward to lead the next rotation trade.

MY
o The rebound in overnight US markets will lend support to the KLCI but trading will remain choppy after oil price declined. Profit taking could also intensify ahead of the weekend break. Key economic data to monitor today is the Malaysia CPI data. Technically, we expect the benchmark index to range between 1,420 and 1,450pts today, with supports at 1,400 and 1,350pts.

o Yinson Holdings (YNS MK): 1QFY1/23 core net profit made up 27% of our FY estimate. Our forecasts are unchanged (3Y NP CAGR of 24%) with multiple catalysts ahead. YNS remains well-entrenched to capitalise on this FPSO upcycle. With 7 key prospects, it targets 2 wins over the next 12M. It is also exploring options to unlock FPSO assets either via the IPO route or new strategic investors. Our revised TP of 4.05 (ex-rights; roll over valuations to FY23) is SOP-based. Maintain BUY.

o Seremban Engineering (SERES MK): Awarded a contract by *Dutch Lady Milk Industries Berhad (DLM MK; CP: MYR33.20; Not Rated)* to undertake CO3 Project and CO4 Project for a new manufacturing plant in Bandar Enstek Industrial Estate, Nilai, Sembilan. The contract, which is worth MYR172.6m, is for a duration of 382 days. This is SERES’ first contract win of the year and should be well received as a stronger pipeline is crucial for its turnaround. Stock is trading at a PB of 3.2x.

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