Malaysia Daybreak | 30 August 2021 FBMKLCI Index
Malaysia | August 30, 2021 Key Metrics Malaysia Daybreak | 30 August 2021 FBMKLCI Index 1,700 ▌What’s on the Table… 1,650 ———————————————————————————————————————————————————————————————————————————————————————— 1,600 1,550 Strategy Note – Reaction to new cabinet and events to watch 1,500 Market likely to be neutral on the new cabinet as key ministers were retained. 1,450 This suggests there will be continuity to policies implemented previously. The 5% 1,400 gain in KLCI in the past week suggests market has priced in political stability in Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 the near term. Maintain KLCI target of 1,608 pts and top picks. ——————————————————————————— FBMKLCI Bumi Armada – A robust 2Q21 as FPSO assets working well 1,590.16 4.42pts 0.28% 1H21 core net profit of RM361m was above expectations, at 82% of our full-year AUG Future SEP Future 1595 - (0.60%) 1579.5 - (0.45%) forecast (76% of consensus) due to better-than-forecast FPSO profits. Upgrade ——————————————————————————— from Hold to Add, with higher SOP-based TP of 55 sen as we raise our earnings Gainers Losers Unchanged forecasts and use a stronger US$ rate of RM4.15 (vs. RM4). Likely strong 2H21F 397 616 445 ——————————————————————————— earnings may re-rate the stock; share price is down 9% from its 16 Jun-high of 49 Turnover sen; a good opportunity to buy, in our view. 4083.21m shares / RM2960.129m 3m avg volume traded 5042.52m shares Public Bank Bhd – A prudent move to enhance provision buffer 3m avg value traded RM2963.34m ——————————————————————————— PBB’s 1H21 net profit was within expectations at 53% of our full-year forecast Regional Indices and 50% of the Bloomberg consensus estimate.
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