Kenanga Today

22 February 2021

By Ahmad Ramzani Ramli l [email protected]; Pritika Modhgil l [email protected] BURSA 19-Feb Day chg % chg KLCI 1,584.9 9.09 0.58% Research Highlights FTSE EMAS 11,641.6 71.7 0.62% NEWS HIGHLIGHTS FTSE Smallcap 16,568.4 48.29 0.29% ⚫ Mah Sing to develop 100 acres of landed residential development FTSE MESDAQ 11,248.6 160.7 1.45% in Bandar Baru Salak Tinggi, Sepang (Comment included in KLSE Mkt Cap 1,733.0 9.3 0.54% Kenanga Today) (RM'b) ⚫ TNB to ensure stable electricity supply at vaccine storage, BURSA DAILY TRADING PARTICIPATION vaccination centres Participation Net (RM’m) Value (%) ⚫ MyEG launches hotel quarantine portal SafeQ for low-risk Covid-19 Local Institution -58.25 43.53 patients Local Retail 136.34 43.66 ⚫ Bursa seeks out opportunities to collaborate with fintech Foreign -78.09 12.81 companies

INDICES 19-Feb Day chg % chg ⚫ Careplus 4Q net profit skyrockets to RM42m, declares two sen Dow Jones 31,494.3 1.0 0.00% special dividend S&P 500 3,906.7 -7.3 -0.19% MACRO BITS NASDAQ 13,874.5 9.1 0.07% FTSE-100 6,624.0 6.9 0.10% ⚫ Iran's Zarif says U.S. must first lift sanctions before talks to revive Nikkei 225 30,017.9 -218.2 -0.72% 2015 deal SHCOMP 3,696.2 20.8 0.57% ⚫ Vaccination drive and global risk-on sentiment underpin a positive HSI 30,644.7 49.5 0.16% outlook (See Economic Viewpoint: Ringgit Weekly Outlook) STI 2,880.6 -28.2 -0.97% ⚫ Muhyiddin, Noor Hisham to receive Covid-19 vaccine on KOSPI 3,107.6 21.0 0.68% Wednesday TWSE 16,341.4 -83.1 -0.51% ⚫ Covid-19 vaccination registration to remain open until target JCI 6,231.9 31.6 0.51% reached — Khairy SET 1,500.5 -10.5 -0.70% ⚫ Thai protests outside parliament after PM survives vote FOREX 19-Feb 18-Feb % chg USD/MYR: 4.0422 4.0425 -0.01% ⚫ Indonesian capital slammed by monsoon floods, more than 1,000 forced to evacuate EUR/USD: 1.2119 1.2067 0.43% GBP/USD: 1.4016 1.3927 0.64% ⚫ New Zealand begins COVID-19 vaccinations programme, Australia USD/YEN: 105.45 105.73 -0.26% starts Monday USD/SGD: 1.3240 1.3276 -0.27% ⚫ U.S. extends travel restrictions at land borders with Canada, USD/HKD: 7.7531 7.7526 0.01% Mexico through March 21

KEY STATS ⚫ Biden's first month was a 'honeymoon,' but bigger challenges loom ahead KLCI Spot Vol (m shares): 14,366.0 14,495.5 -0.89% ⚫ UK to reopen in stages after driving down South African variant, Value (RMm): 6,361.2 6,739.9 -5.62% Hancock says KLCI Future ⚫ Sunak to raise business tax to pay for COVID-19 support - The Feb-21 1,582.0 1,579.0 0.19% Sunday Times Mar-21 1,573.0 1,570.5 0.16% CPO Price 3,522.0 3,489.0 0.95% IDEAS OF THE DAY (SEE SEPARATE REPORTS FOR DETAILS) (RM/tonne) ⚫ Sector Update: Telecommunications Soybean (US$/bu) 1,377.3 1,375.0 0.16% SoyOil (USc/lb) 46.9 46.3 1.38% ⚫ Results Note: MALAKOF, CIMB (Niaga), PETDAG Gold (US$/troy oz) 1,777.4 1,775.0 0.14% ⚫ Weekly Technical Review Nymex crude oil 59.2 60.5 -2.12% (US$/bbl) ⚫ Regional News Update Latex (RM/kg) 5.91 5.83 1.37% ⚫ Economic Viewpoint: Ringgit Weekly Outlook Tin (US$/mt) 28,740.0 27,162.0 5.81% # Top Volume Top Gainer Top Loser %Chg Vol %Chg Vol %Chg Stock Price Stock Price Stock Price Vol (m) (+/-) (m) (+/-) (m) (+/-) 1 TOPGLOV 6.05 -0.3 27.00 MISC 6.59 3.0 4.77 SUPERMX 5.80 -3.3 22.80 2 SUPERMX 5.80 -3.3 22.80 CIMB 4.25 2.9 9.28 HARTA 12.06 -2.6 4.91 3 PBBANK 4.13 0.5 20.10 3.37 2.4 4.35 HLBANK 17.78 -1.9 0.62 4 TM 6.48 0.6 11.20 PMETAL 8.90 2.1 3.56 TOPGLOV 6.05 -0.3 27.00 5 GENTING 4.35 0.0 11.10 SIME 2.19 1.9 9.53 SIMEPLT 4.94 -0.2 5.81 6 SIME 2.19 1.9 9.53 MAXIS 4.75 1.7 2.46 IHH 5.09 -0.2 2.96 7 CIMB 4.25 2.9 9.28 8.03 1.3 5.58 GENTING 4.35 0.0 11.10 8 DIALOG 3.23 0.9 7.65 GENM 2.75 1.1 6.90 PETDAG 19.20 0.1 0.35 9 GENM 2.75 1.1 6.90 HAPSENG 7.75 1.0 0.21 RHBBANK 5.42 0.2 4.49 10 SIMEPLT 4.94 -0.2 5.81 DIALOG 3.23 0.9 7.65 PCHEM 7.49 0.3 2.05 Notes: # KL Composite Index (FBMKLCI) component stocks

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Kenanga Today

22 February 2021

Corporate News

• Mah Sing to develop 100 acres of landed residential development in Bandar Baru Salak Tinggi, Sepang Mahsing is acquiring 100acres of leasehold land in Bandar Baru Salak Tinggi, Sepang for RM95.8m earmarked for a RM656m GDV mid-ranged landed homes project called M Senyum to be developed in the next 5 years. The subject land is located at the fringe of Selangor borders within 15km away from existing townships namely Kota Warisan, Bandar Baru Nilai and Dengkil. M Senyum’s product range will feature 18 x 65 and 20 x 70 double storey homes with starting prices of RM399k. Land acquisition will complete in 2H21 with registration for interest and potential launch of its first phase to also happen in 2H21. (Bursa Malaysia) Comment: Overall neutral. While acquisition price tag is fair indicating land-to- GDV ratio of 14.6% which is the lower end of Mahsing’s typical acquisition range of 15-20%; the land’s location stands inferior to its peers mid-ranged townships within 15 km away such as Simeprop’s Serenia City, Ioipg’s Kota Warisan and Sunsuria’s Sunsuria City when it comes to amenities and accessibility. That said, M Senyum’s tentative launch prices of RM250/sf is lower against these townships but fall in line with its immediate neighbouring homes (2-5km away) median transacted price of RM243/sf (according to brickz). For now, maintain our FY21 sales target at RM1.7b. Keep earnings and reiterate OUTPERFORM with unchanged SoP-TP of RM1.05. (By: Lum Joe Shen) • TNB to ensure stable electricity supply at vaccine storage, vaccination centres Bhd (TNB) has made preliminary preparations to ensure electricity supply at vaccine storage centres and vaccination centres nationwide remains stable throughout the implementation of the National Covid-19 Immunisation Programme. Its chief distribution network officer Datuk Baharin Din said discussions with the Ministry of Health (MoH) have been and are being continued to detail the needs of the MoH, especially involving efforts to avoid supply disruptions at vaccine storage locations. (The Edge) • MyEG launches hotel quarantine portal SafeQ for low-risk Covid-19 patients MY EG Services Bhd (MyEG) has launched an online portal, SafeQ, which offers an array of hotel accommodation and amenity options available to low- risk Covid-19 patients who wish to undergo mandatory quarantine requirements in more comfortable settings. In a statement to Bursa Malaysia, the group said the portal provides a selection of hotel accommodations of varying categories, ranging from three-star to five-star facilities to cater to all budgets. (The Edge) • Bursa Malaysia seeks out opportunities to collaborate with fintech companies Bursa Malaysia Bhd is seeking out opportunities to collaborate with fintech (financial technology) companies or other strategic partners to strengthen its value proposition, thus increasing its agility and efficiency. Chief executive officer Datuk Muhamad Umar Swift said such efforts would help the exchange grow, capture new opportunities, innovate, and remain relevant in this fast- changing financial landscape. (The Edge) • Careplus 4Q net profit skyrockets to RM42.0m, declares two sen special dividend Careplus Group Bhd’s net profit for the fourth quarter ended Dec 31, 2020 (4QFY20) skyrocketed to RM42.2m from RM783,000 a year earlier boosted by higher selling prices and strong demand. In a bourse filing, the glove manufacturer said its quarterly revenue grew nearly 19% to RM129.3m from RM108.7m in the previous corresponding quarter. Earnings per share ballooned to 7.87 sen from 0.15 sen in 4QFY19. (The Edge)

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Kenanga Today

22 February 2021

Macro Bits Global ⚫ Iran's Zarif says U.S. must first lift sanctions before talks to revive 2015 deal Tehran said on Sunday the United States must first lift sanctions on Iran if it wants to talk about salvaging the 2015 nuclear deal, reiterating its stance that it will not make the first move to restore the pact with major powers. (Reuters) Malaysia ⚫ Vaccination drive and global risk-on sentiment underpin a positive outlook MYR is expected to strengthen this week, due to increasing risk appetite on optimism over Malaysia's vaccination drive, global economic recovery, a weaker USD and a relatively stable crude oil prices. (See Economic Viewpoint: Ringgit Weekly Outlook) ⚫ Muhyiddin, Noor Hisham to receive Covid-19 vaccine on Wednesday Prime Minister Tan Sri and Health director-general Tan Sri Dr will be among the first to receive the Covid-19 vaccine when the National Covid-19 Immunisation Programme is rolled out on Wednesday, ahead of schedule, said Khairy Jamaluddin. (The Edge Markets) ⚫ Covid-19 vaccination registration to remain open until target reached — Khairy Registration for the Covid-19 vaccination, to commence on March 1, will remain open until it reaches the target of 80% of the population having received the vaccine, said Coordinating Minister for the National Covid-19 Immunisation Programme Khairy Jamaluddin. (The Edge Markets)

Asia Pacific ⚫ Thai protests outside parliament after PM survives vote Hundreds of protesters gathered outside ’s parliament after Prime Minister Prayuth Chan-ocha and nine ministers survived a parliamentary no-confidence motion on Saturday after a four-day censure debate. (Reuters) ⚫ Indonesian capital slammed by monsoon floods, more than 1,000 forced to evacuate Severe flooding across several areas in the Indonesian capital forced more than a thousand people to flee their homes, with the country’s meteorology agency warning the conditions were set to continue next week. (Reuters) ⚫ New Zealand begins COVID-19 vaccinations programme, Australia starts Monday New Zealand started its official rollout of Pfizer-BioNTech’s COVID-19 vaccine on Saturday, while Australia finalised plans to begin inoculations on Monday, a new phase in tackling the virus that both countries have kept largely contained. (Reuters)

Americas ⚫ U.S. extends travel restrictions at land borders with Canada, Mexico through March 21 U.S. land borders with Canada and Mexico will remain closed to non-essential travel until at least March 21, the one- year anniversary of the restrictions to address COVID-19 transmission concerns, the U.S. government said Friday. (Reuters) ⚫ Biden's first month was a 'honeymoon,' but bigger challenges loom ahead One month into the job, President Joe Biden is on the cusp of securing a bigger economic rescue package than during the 2009 financial crisis. He has wiped out his predecessor Donald Trump’s policies from climate change to travel bans, while the U.S. daily COVID-19 vaccine distribution rate grew 55%. (Reuters)

Europe ⚫ UK to reopen in stages after driving down South African variant, Hancock says Britain has started to drive down cases of the more infectious South African variant of coronavirus and will only emerge from lockdown in stages to make sure that does not change, the country’s health secretary said. (Reuters) ⚫ Sunak to raise business tax to pay for COVID-19 support - The Sunday Times British finance minister Rishi Sunak is set to increase a tax on business to pay for an extension to COVID-19 support schemes in the budget next month, The Sunday Times reported. (Reuters)

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Kenanga Today

22 February 2021

List of Oversold Stocks (14-Day RSI<30-mark) NAME* LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D AT SYSTEMATIZATION BHD 0.140 23.62 10.36 0.03 0.135 *Only for stocks with market cap >RM300m Source: Bloomberg

List of Overbought Stocks (14-Day RSI>70-mark) NAME* LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D HEXTAR GLOBAL BHD 1.220 84.98 90.72 97.74 1.220 DATAPREP HOLDINGS BHD 0.735 84.88 85.03 77.93 0.900 TROPICANA CORP BHD 0.935 83.36 90.85 99.78 0.940 MEDIA PRIMA BHD 0.520 82.28 84.74 87.90 0.520 AWANBIRU TECHNOLOGY BHD 1.180 81.17 89.05 99.38 1.260 COASTAL CONTRACTS BHD 0.860 80.65 88.42 98.49 0.870 FREIGHT MANAGEMENT HOLDINGS 1.780 80.09 82.35 90.62 1.780 DAGANG NEXCHANGE BHD 0.690 78.59 78.28 69.62 0.840 MALAYSIA SMELTING CORP BHD 2.800 77.54 76.93 68.22 2.930 RAPID SYNERGY BHD 7.800 76.52 77.79 65.22 8.000 PA RESOURCES BHD 0.560 76.15 79.63 92.45 0.590 ANN JOO RESOURCES BHD 2.260 75.33 78.64 79.67 2.280 D&O GREEN TECHNOLOGIES BHD 3.590 75.25 77.29 82.51 3.640 ES CERAMICS TECHNOLOGY BHD 0.850 74.43 77.39 89.49 0.850 DAYANG ENTERPRISE HLDGS BHD 1.520 74.05 77.54 73.82 1.590 OCK GROUP BHD 0.515 73.81 81.17 94.89 0.515 MALAYSIAN PACIFIC INDUSTRIES 38.400 72.37 69.95 65.14 39.880 PANSAR BHD 0.775 72.27 80.23 84.29 0.790 LION INDUSTRIES CORP BHD 0.900 71.85 76.34 83.28 0.950 PERUSAHAAN SADUR TIMAH MALAY 4.070 71.05 78.36 89.73 4.180 REDTONE DIGITAL BHD 0.420 70.88 75.78 82.08 0.430 PESTECH INTERNATIONAL BHD 1.260 70.26 69.68 43.54 1.430 *Only for stocks with market cap >RM300m Source: Bloomberg

List of Oversold Warrants (14-Day RSI<30-mark) NAME LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D EXPIRY DATE KOSSAN RUBBER-C20 0.005 23.90 15.68 0.21 0.005 31/5/2021 AT SYSTEMATIZATION BHD-WC 0.125 28.85 19.22 2.81 0.115 17/5/2025 TOP GLOVE COR-C96 0.005 29.87 26.77 12.20 0.005 30/4/2021 Source: Bloomberg

List of Overbought Warrants (14-Day RSI>70-mark) NAME LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D EXPIRY DATE TA WIN HOLDINGS BHD-WA 0.165 84.69 90.20 98.47 0.210 5/8/2022 PA RESOURCES BHD-WB 0.435 83.93 84.80 89.26 0.475 17/12/2022 REVENUE GROUP BHD-WA 1.260 83.51 85.35 88.77 1.260 14/1/2024 DAGANG NEXCHANGE BHD-WD 0.305 83.07 84.35 83.57 0.480 30/7/2021 DAYANG ENTERPRISE HOLDINGS BHD- 0.085 76.90 84.97 97.66 0.090 28/6/2021 C11 JAKS RESOURCES BHD-WC 0.500 76.56 83.02 90.16 0.520 18/11/2025 ES CERAMICS TECHNOLOGY BHD-WB 0.615 76.25 78.92 87.64 0.620 19/10/2023 D&O GREEN TECHNOLOGIES BHD-CB 0.780 75.08 76.55 78.98 0.800 8/11/2021 VISDYNAMICS HOLDINGS BHD-WB 0.825 74.75 76.16 69.58 0.950 16/11/2022 D&O GREEN TECHNOLOGIES BHD-CC 0.315 73.68 75.36 80.42 0.315 8/11/2021 AWANBIRU TECHNOLOGY BHD-WA 0.800 73.30 82.92 99.26 0.895 24/11/2025 OCK GROUP BHD-WB 0.240 73.09 79.64 92.00 0.250 4/1/2026 EA HOLDINGS BHD-WE 0.030 71.97 77.22 90.02 0.030 22/4/2023 GREEN PACKET BHD-WB 0.175 70.00 80.80 97.74 0.185 24/11/2023 Source: Bloomberg

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Kenanga Today

22 February 2021

Stock Ratings are defined as follows:

Stock Recommendations

OUTPERFORM : A particular stock’s Expected Total Return is MORE than 10% MARKET PERFORM : A particular stock’s Expected Total Return is WITHIN the range of -5% to 10% UNDERPERFORM : A particular stock’s Expected Total Return is LESS than -5%

Sector Recommendations***

OVERWEIGHT : A particular sector’s Expected Total Return is MORE than 10% NEUTRAL : A particular sector’s Expected Total Return is WITHIN the range of -5% to 10% UNDERWEIGHT : A particular sector’s Expected Total Return is LESS than -5%

***Sector recommendations are defined based on market capitalisation weighted average expected total return for stocks under our coverage.

This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies.

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KENANGA INVESTMENT BANK BERHAD (15678-H) Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia Telephone: (603) 2172 0880 Website: www.kenanga.com.my E-mail: [email protected]

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