Myetf Dj Islamic 25
Total Page:16
File Type:pdf, Size:1020Kb
MYETF DJ ISLAMIC 25 (DJIM25 MK EQUITY, DJMT.KL) 22 Mar 2021 Bursa ETF Watch: Supermax out, Telekom in Company report HOLD AmInvestment Bank (Maintained) www.amequities.com.my 03-2036 2240 Rationale for report: ETF update Price RM1.25 Fund description and objective: MyETF Dow Jones Islamic Market Malaysia Fair Value RM1.34 Titans 25 (MYETF DJ Islamic 25), an exchange-traded fund (ETF) established 52-week High/Low RM1.415/RM0.86 in Malaysia, is designed to seek performance generally similar to the Dow Jones Islamic Market Malaysia Titans 25 Index (DJ Islamic 25 Index). The Key Changes fund invests all its assets in substantially the same weighting as per on the Fair value benchmark index. Investment Highlights We maintain HOLD on MyETF DJ Islamic 25 but adjust down our fair value (FV) by 4% to RM1.34 (from RM1.39) based on our FVs (for stocks under our coverage) and consensus FVs (for stocks not under our coverage). It is at a slight premium to its NAV of RM1.21 (Exhibit 3). Following its latest quarterly review, the index providers S&P Dow Jones Indices decided to replace Dow Jones Islamic Market Malaysia Titans 25 Index component stock Supermax with Telekom Malaysia, with effect from after the Source: Bloomberg Stock and Financial Data close of trading on 19 Mar 2021. We are reflecting this change in our revised valuation. Shares Outstanding (million) 257.5 Market Cap (RM mil) 211.9 We maintain our view that the upside to glove stocks and NAV (RM/share) 1.21 hence the healthcare sector is now capped, on the back of P/NAV (x) 1.03 Premium/Discount (%) 3 the rollout of Covid-19 vaccines worldwide, paving the way MER (%) 0.54 for the eventual end to the pandemic, and hence an end to Major Shareholders N/A the surge in demand for gloves. Free Float (%) 100 Avg Daily Value (RM) 7,095 On the other hand, we are positive on the outlook for other Fund Info key sectors tracked by the ETF, i.e. consumer goods, oil & Date of inception 22-Jan-08 gas and telecommunications (Exhibit 2). We believe Shariah compliance Yes consumer spending will be well supported by cash handouts ISIN MYL0821EA008 during the pandemic and the recovery in the job market Stock code 0821EA Short name MYETFDJ Islamic25 thereafter. Meanwhile, we believe oil prices will ride on the BB ticker DJIM25 MK gradual recovery in global economy, while Opec+ continues Benchmark index DJIM Mly Ttns 25 to exercise production restraint. Min tradable lot 100 Min creation/redemption value (mil) 0.469 Website www.myetf.com.my Telcos are riding on a new wave of digitalisation of the economy. The still intense competition among mobile Management Fund manager Kenanga Investors Bhd telecommunications operators amidst escalating capex Investment manager N/A requirements could also trigger M&As within the sector. Trustee Deutsche Trustee Malaysia Berhad Shariah Adviser Amanie Advisors Sdn Bhd Participating dealer CIMB Investment Bank Berhad RHB Investment Bank Berhad Market maker N/A MyETF DJ Islamic 25 22 Mar 2021 EXHIBIT 1: MYETF DJIM25 – CONSTITTUENTS & WEIGHTING (%) Source: MYETF DJIM25, AmInvestment Bank EXHIBIT 2: ETF’S SECTOR WEIGHTING* Source: S&P Dow Jones Indices *As at 26 Feb 2021 AmInvestment Bank Bhd 2 MyETF DJ Islamic 25 22 Mar 2021 EXHIBIT 3: MYETF DJIM25 – NAV AND FV MYETF DJIM25's NAV MYETF DJIM's FV No. of Value No. of FV Value Stock Price (RM) Stock Source shares (RM) shares (RM) (RM) Top Glove Corp Bhd 9,300 5.41 50,313 Top Glove Corp Bhd 9,300 5.46 AmBank 50,778 Petronas Chemicals Group Bhd 4,400 8.22 36,168 Petronas Chemicals Group Bhd 4,400 8.30 AmBank 36,520 Hartalega Holdings Bhd 3,200 9.69 31,008 Hartalega Holdings Bhd 3,200 11.20 AmBank 35,840 IHH Healthcare Bhd 5,700 5.48 31,236 IHH Healthcare Bhd 5,700 6.26 AmBank 35,682 Dialog Group Bhd 7,800 3.17 24,726 Dialog Group Bhd 7,800 4.80 AmBank 37,440 Sime Darby Plantation Bhd 4,600 4.85 22,310 Sime Darby Plantation Bhd 4,600 5.50 AmBank 25,300 Digi.Com Bhd 6,200 3.74 23,188 Digi.Com Bhd 6,200 4.05 AmBank 25,110 Petronas Gas Bhd 1,500 15.58 23,370 Petronas Gas Bhd 1,500 21.30 AmBank 31,950 IOI Corp Bhd 5,800 4.24 24,592 IOI Corp Bhd 5,800 4.20 AmBank 24,360 Maxis Bhd 4,400 4.75 20,900 Maxis Bhd 4,400 5.10 AmBank 22,440 Kuala Lumpur Kepong Bhd 1,100 23.48 25,828 Kuala Lumpur Kepong Bhd 1,100 25.00 AmBank 27,500 Nestle (Malaysia) Berhad 200 135.70 27,140 Nestle (Malaysia) Berhad 200 117.00 AmBank 23,400 Telekom Malaysia 3,400 6.32 21,488 Telekom Malaysia 3,400 7.10 AmBank 24,140 Press Metal Aluminium Holdin 3,000 9.82 29,460 Press Metal Aluminium Holdin 3,000 11.60 Consensus 34,800 Petronas Dagangan Bhd 700 20.30 14,210 Petronas Dagangan Bhd 700 20.13 Consensus 14,092 QL Resources Bhd 2,100 6.06 12,726 QL Resources Bhd 2,100 5.95 Consensus 12,491 Sime Darby Berhad 4,600 2.52 11,592 Sime Darby Berhad 4,600 2.87 AmBank 13,202 Kossan Rubber Industries 2,400 3.57 8,568 Kossan Rubber Industries 2,400 4.20 AmBank 10,080 Fraser & Neave Holdings Bhd 300 30.50 9,150 Fraser & Neave Holdings Bhd 300 33.35 Consensus 10,004 Westports Holdings Bhd 1,800 4.41 7,938 Westports Holdings Bhd 1,800 5.07 AmBank 9,126 Inari Amertron Bhd 4,300 3.28 14,104 Inari Amertron Bhd 4,300 3.04 AmBank 13,072 Comfort Gloves Bhd 700 2.18 1,526 Comfort Gloves Bhd 700 2.71 Consensus 1,900 My Eg Services Bhd 3,800 2.02 7,676 My Eg Services Bhd 3,800 2.60 Consensus 9,880 Duopharma Biotech Bhd 700 2.64 1,848 Duopharma Biotech Bhd 700 3.55 Consensus 2,487 Hibiscus Petroleum Bhd 2,600 0.67 1,742 Hibiscus Petroleum Bhd 2,600 0.79 AmBank 2,054 Cash In Hand 846 Cash In Hand 846 NAV 483,653 FV 534,494 NAV/unit 1.21 FV/unit 1.34 Source: Bloomberg, AmInvestment Bank, MYETF DJIM25 EXHIBIT 4: DIVIDEND YIELD Year Dividend Yield (%) 2020 1.81 1.39 2019 2.44 2.16 2018 2.39 2.12 2017 2.23 1.96 2016 2.37 2.23 Source: Bloomberg, AmInvestment Bank AmInvestment Bank Bhd 3 MyETF DJ Islamic 25 22 Mar 2021 TOTAL RETURN PERFORMANCES Year Fund total return (%) Benchmark performance (%) PE (x) 23.7 2020 19.42 20.66 1Y Fwd PE (x) 13.7 2019 1.36 2.41 Year Tracking error (%) 2018 -3.51 -3.05 1M 0.24 2017 11.94 12.41 1Y 0.36 2016 -6.82 -6.30 3Y 0.44 5Y 0.37 PERFORMANCE Total return 1M 3M 6M 1Y 3Y 5Y Inception Price -1.18 -5.97 -4.55 20.00 8.15 13.51 34.21 NAV -1.08 -5.77 -9.85 18.65 4.11 10.62 29.62 Benchmark -3.84 -8.94 -11.11 18.24 2.31 10.72 20.06 Source: Bloomberg GLOSSARY Creation Application An application to create new Units Redemption Application An application to redeem existing Units Creation Unit Block The quantity of Units which will be issued upon a successful CreationApplication in respect of one (1) whole In-Kind Creation Basket This quantity of Units may change from time to time as determined by the Manager, approved by the Trustee and notified to the Participating Dealers Redemption Unit Block The quantity of Units which are required to be delivered to the Trustee in exchange for one (1) whole In-Kind Redemption Basket in a RedemptionApplicationThis quantity of Units may change from time to time as determined by the Manager, approved by the Trustee and notified to the Participating Dealers Creation Securities The Permitted Investments which, together with the Cash Component (if any), comprise an In-Kind Creation Basket or multiples thereof, are required to be deposited with the Trustee (but which shall not form part of the Fund Assets until such time as the CreationApplication is successfully completed) by or for the account of a Participating Dealer pursuant to an approved and successful Creation Application submitted by that Participating Dealer. Redemption Securities The Permitted Investments which, together with the Cash Component (if any), comprise an In-Kind Redemption Basket or multiples thereof, are to be distributed from the Fund to or for the account of a Participating Dealer pursuant to an approved and successful Redemption Application submitted by that Participating Dealer in accordance with the provisions of the Deed. Tracking error The volatility from the average of excess returns versus the benchmark of defined granularity over the timeframe specified. Tracking error is used as a measure of quality of benchmark tracking. For more info on the definition of ETF and benefits of investing in it, kindly refer to http://www.bursamarketplace.com/mkt/themarket/etf. For more other info about the ETF, kindly refer to the fund's website, Bursa's website or its prospectus. FUND RATING STRUCTURE AND DEFINITIONS BUY Minimum expected total return (capital gains + dividend yield) of 15% over a period of 12 months. HOLD Expected total return (capital gains + dividend yield) of between <+15% and >-15% over a period of 12 months).