26 April 2021 FBMKLCI Index
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Malaysia | April 26, 2021 Key Metrics Malaysia Daybreak | 26 April 2021 FBMKLCI Index 1,700 1,650 ▌What’s on the Table… ———————————————————————————————————————————————————————————————————————————————————————— 1,600 1,550 1,500 DiGi.com – Muted near-term outlook; focus on merger 1,450 1,400 1Q21 core EPS (-10.6% qoq) and 3.4 sen DPS (100% payout) were in line. 1,350 Service revenue eased qoq due to seasonality and lower digital revenue, bogged 1,300 down further by higher opex. Reiterate Add with a 2% lower DCF-based target Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 price of RM4.45. ——————————————————————————— FBMKLCI 1,608.43 0.70pts 0.04% Maxis Berhad – 1Q21: Mobile revenue softness persists APR Future MAY Future 1611 - (0.44%) 1607 - (0.44%) 1Q21 core EPS (+4.7% qoq) and DPS (4 sen) slightly missed expectations. 1Q21 ——————————————————————————— mobile revenue fell mildly qoq; EBITDA margin up on lower opex. We reiterate Gainers Losers Unchanged our Hold call with a 2% lower DCF-based TP of RM4.80. 580 472 454 ——————————————————————————— Turnover 6548.64m shares / RM4189.153m SKP Resources Bhd – 1-for-4 bonus issue goes ex 3m avg volume traded 8412.32m shares 3m avg value traded RM4765.04m SKP’s 1-for-4 bonus issue went ex on 21 Apr, enlarging its share base to 1.56bn. ——————————————————————————— The bonus issue also includes the issuance of 1-for-5 free warrants. We expect Regional Indices FBMKLCI FSSTI JCI SET HSI its order flows to remain robust, supported by contributions from the newer 1,608 3,194 6,017 1,554 29,079 product models for its largest customer. We reiterate our Add call with an ———————————————————————————————— ex-bonus adjusted TP of RM2.17, still based on an unchanged 19x CY22F P/E. Market Indices Close % chg YTD % chg FBMKLCI 1,608.43 0.0 (1.2) Economic Update – Mar 2021 consumer price inflation FBM100 11,492.06 (0.0) (0.1) FBMSC 17,241.87 0.7 10.8 FBMMES 8,686.05 1.2 (19.1) Headline inflation jumped to 1.7% yoy in Mar, as low base effects from last year’s Dow Jones 34,043.49 0.7 11.2 oil price crash kicked in, while core inflation was stable at 0.7% yoy. We retain NASDAQ 14,016.81 1.4 8.8 our annual inflation forecast of 3.1% in 2021, as rising agriculture and energy FSSTI 3,194.04 0.2 12.3 FTSE-100 6,938.56 0.0 7.4 costs exert upward pressure on prices. We expect OPR to remain on hold at SENSEX 47,878.45 (0.4) 0.3 1.75% in 2021 to support economic recovery, as BNM looks past the transitory Hang Seng 29,078.75 1.1 6.8 JCI 6,016.86 0.4 0.6 surge in cost-push inflation. KOSPI 3,186.10 0.3 10.9 Nikkei 225 29,020.63 (0.6) 5.7 PCOMP 6,378.07 (0.6) (10.7) SET 1,553.59 (0.9) 7.2 Shanghai 3,474.17 0.3 0.0 ▌News of the Day… Taiwan 17,300.27 1.2 17.4 ———————————————————————————————————————————————————————————————————————————————————————— ———————————————————————————————— Top Actives • Malaysia’s CPI notches up 1.7% yoy to 122.9 in Mar 2021 Close % chg Vol. (m) • Azmin: Malaysia attracted RM81.9bn FDI YTD FOCUS DYNAMICS 0.125 8.7 461.2 UCREST 0.475 14.5 294.2 • IWH said to be eyeing merger with IJM Corp MAH SING GROUP 1.010 7.4 258.3 KEY ASIC 0.205 5.1 236.3 • Sime Darby's JV co to pay RM118m for late payment to a Chinese contractor DAGANG NEXCHANGE 0.745 1.4 151.0 • Petronas Dagangan budgets RM500m capex for retail ops in FY21 DATAPREP HLDGS 2.080 11.2 108.4 NOVA MSC 0.140 21.7 102.9 • Genting Group keen on Chicago casino project SEDANIA 0.225 0.0 83.1 • AirAsia launches airasia money, partners RinggitPlus ———————————————————————————————— Economic Statistics Close % chg US$/Euro 1.2093 (0.06) RM/US$ (Spot) 4.1085 (0.06) RM/US$ (12-mth NDF) 4.1544 (0.56) OPR (%) 1.75 0.00 GOLD ( US$/oz) 1,774.88 (0.13) WTI crude oil US spot (US$/barrel) 62.18 1.17 CPO spot price (RM/tonne) 4,390.00 1.68 ———————————————————————————————————————— Ivy NG Lee Fang, CFA T (60) 3 2261 9073 E [email protected] Show Style "View Doc Map" IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. IF THIS REPORT IS DISTRIBUTED IN Powered by the THE UNITED STATES IT IS DISTRIBUTED BY CGS-CIMB SECURITIES (USA), INC. AND IS CONSIDERED THIRD-PARTY AFFILIATED RESEARCH. EFA Platform Sources: CIMB. COMPANY REPORTS Sources: CIMB. COMPANY REPORTS Malaysia Daybreak | April 26, 2021 Malaysia Economic News Malaysia’s CPI inflation increased 1.7% yoy to 122.9 in Mar, the highest rate since May 2018. (The Edge Markets) Please refer to our note for details More than 30 items will be listed under the Festive Season Maximum Price Control Scheme (SHMMP) for the coming Aidilfitri, said Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi, adding to the previously announced a list of 12 items under four categories, namely chicken, chicken eggs, meat and seafood, under the SHMMP to be implemented for 30 days from 21 Apr. The additional list of items will be announced soon. (Bernama) Malaysia has managed to attract foreign direct investment (FDI) worth RM81.9bn from 240 companies so far this year, according to the Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali, including investments in the technology, innovation, green technology, electric vehicles and fintech sectors. (Bernama) Malaysia would each see economic growth 20% below what they could otherwise expect by 2050 if the increase in global temperatures is held to 2°C, as crop yields fall, disease spreads and rising seas consume coastal cities, Swiss Re, a major insurance company warned. (The Edge Markets) Malaysia has received its first batch of 268,800 doses of AstraZeneca vaccine, said Health Minister Datuk Seri Dr Adham Baba. Malaysia had signed an agreement in Dec to procure AstraZeneca vaccine to cover 3% of the country's population. As at 23 Apr, a total of 495,750 individuals have received both doses of their Covid-19 vaccine while 783,987 individuals received their first dose, bringing the total number of Covid-19 shots administered in the country to 1.28m. (Bernama) With daily Covid-19 cases persistently coming in above 2,000 since 15 Apr, the Health and Sciences Covid-19 Advisory Group of Experts called on the government to centre its mitigation efforts on targeted Movement Control Orders (MCOs), and to speed up the vaccine roll-out. (The Edge Markets) Aidilfitri bazaars nationwide are allowed to operate until 2am from 26 Apr, said Senior Minister (Security) Datuk Seri Ismail Sabri Yaakob. He said the extension of operating hours was allowed after listening to appeals from bazaar traders. (Bernama) The Enhanced Movement Control Order (EMCO) in three localities, involving two areas in Sabah and one in Sarawak that was scheduled to end 25 Apr but has been extended until 9 May. Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob said the two localities in Sabah were Bandar Sri Indah and Kampung Titingan in the Tawau district, while in Sarawak it involved Sungai Passin, Matu. (Bernama) The Conditional Movement Control Order (CMCO) in Sarawak has been extended from 27 April to 10 May, said the State Disaster Management Committee (SDMC). In a statement on 26 Apr, SDMC said the 14-day extension was made because new Covid-19 cases were still high in the state. (Bernama) 2 Malaysia Daybreak | April 26, 2021 The Sabah government on 24 Apr gave an additional two-hour extension for food traders to operate in localities subject to the Movement Control Order (MCO), said state Local Government and Housing Minister Datuk Masidi Manjun. Masidi, who is also the state government spokesperson on Covid-19, said food traders including stalls, restaurants and eateries can now carry out their operations from 6am to 8pm. (Bernama) A total of 3,500 entrepreneurs are targeted to benefit from a RM3.11m allocation from the Ministry of Entrepreneur Development and Cooperatives (MEDAC) and SME Corp Malaysia through the Warongku platform. (Bernama) Senior Minister cum International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali will lead a trade and investment mission to Saudi Arabia and the United Arab Emirates (UAE) from 26 Apr until 4 May 21. The mission is part of the Ministry of International Trade and Industry's (MITI) continuous efforts to promote business opportunities and strategic partnerships between Malaysia and the West Asian region. (Bernama) Political News The public approval rating for Prime Minister Tan Sri Muhyiddin Yassin remains stable at 67% (vs. 63% in Jan) amidst concerns over the economy and Covid-19 pandemic, according to a Merdeka Centre survey. He retained strong support from the Malay electorate at 83%, Chinese (30%), and the Indian community (66%). Public mood about the direction of the country was mixed with 41% expressing that the country was ‘moving in the right direction’ (32% in Jan) while 46% felt the country was ‘headed in the wrong direction’ (54% in Jan). (The Edge Markets) The United Malays National Organisation (UMNO) veteran Datuk Seri Shahidan Kassim has been removed as the party's Perlis liaison committee chief, the party announced on 24 Apr. Party president Datuk Seri Dr Ahmad Zahid Hamidi said the former Minister in the Prime Minister's Department would be replaced by Perlis Menteri Besar Datuk Seri Azlan Man.