Malaysia Daybreak | 21 June 2021 FBMKLCI Index
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Malaysia | June 21, 2021 Key Metrics Malaysia Daybreak | 21 June 2021 FBMKLCI Index 1,700 ▌What’s on the Table… 1,650 ———————————————————————————————————————————————————————————————————————————————————————— 1,600 1,550 Bermaz Auto Berhad – Torque about stronger margin recovery 1,500 FY4/21 core net profit beat our expectations by 34% and consensus by 39% due 1,450 to better-than-expected margin and sales volume in 4QFY21. We see a weaker 1,400 start in 1QFY4/22F due to FMCO but forecast a stronger FY4/22F, driven by Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 higher sales volume from new launches and tax holiday. Raise FY22-23F EPS by ——————————————————————————— 2-18%. Reiterate Add with a higher RM2.00 TP. FBMKLCI 1,589.05 18.19pts 1.16% JUN Future JUL Future Strategy Note – 2021 CGS-CIMB Retail Investors’ Sentiment Survey 1580 - (0.99%) 1581 - (0.96%) ——————————————————————————— We conducted the 2nd edition of our proprietary Retail Investors Survey in May Gainers Losers Unchanged 2021. Respondents to our survey are mostly neutral on the stock market over the 579 443 449 ——————————————————————————— next three months. Survey results reveal that a significant rise in OPR or wide Turnover availability of alternative investments with higher returns could potentially lead to 6311.33m shares / RM4774.628m profit-taking in the stock market among retail investors. A deterioration in investor 3m avg volume traded 6674.83m shares sentiment on Malaysia’s economy and political situation could also reduce retail 3m avg value traded RM3874.71m ——————————————————————————— investors’ interest in the stock market. Based on reopening timeline in the Regional Indices National Recovery Plan, we expect investors to shift to recovery plays in Jul/Aug FBMKLCI FSSTI JCI SET HSI 21.Our top three key picks in this theme are Maybank, Genting and Malaysia 1,589 3,144 6,007 1,613 28,801 Airports. ———————————————————————————————— Market Indices Close % chg YTD % chg FBMKLCI 1,589.05 1.2 (2.3) FBM100 11,276.33 0.9 (2.0) ▌News of the Day… FBMSC 16,281.63 0.2 4.6 ———————————————————————————————————————————————————————————————————————————————————————— FBMMES 7,707.70 1.7 (28.2) Dow Jones 33,290.08 (1.6) 8.8 • PM is confident of achieving herd immunity by end-2021 NASDAQ 14,030.38 (0.9) 8.9 FSSTI 3,144.16 0.2 10.6 • Petronas refuted market talks that it is applying for a digital banking licence FTSE-100 7,017.47 (1.9) 8.6 • Maybank Group CFO Amirul Feisal may replace Shahril Ridza of Khazanah SENSEX 52,344.45 0.0 9.6 Hang Seng 28,801.27 0.8 5.8 • Sunway may divest a strategic stake in its healthcare assets to Singapore's GIC JCI 6,007.12 (1.0) 0.5 • Vehicle sales in May fell 19% mom due to MCO 3.0 KOSPI 3,267.93 0.1 13.7 Nikkei 225 28,964.08 (0.2) 5.5 • DNeX gets greenlight to acquire an additional 60% stake in Ping for RM314m PCOMP 6,851.38 (0.5) (4.0) SET 1,612.98 (0.3) 11.3 Shanghai 3,525.10 (0.0) 1.5 Taiwan 17,318.54 (0.4) 17.6 ———————————————————————————————— Top Actives Close % chg Vol. (m) FINTEC GLOBAL 0.035 16.7 468.7 MMAG HOLDINGS 0.185 (2.6) 450.0 VSOLAR GROUP 0.020 33.3 268.7 EURO HOLDINGS 1.100 (9.1) 240.5 MTOUCHE TECH 0.090 0.0 169.3 SERBA DINAMIK 0.625 (0.8) 152.7 HIAP HUAT 0.190 0.0 138.0 MR DIY GROUP 3.900 0.0 92.9 ———————————————————————————————— Economic Statistics Close % chg US$/Euro 1.1873 0.03 RM/US$ (Spot) 4.1395 (0.04) RM/US$ (12-mth NDF) 4.1880 (0.77) OPR (%) 1.75 0.00 GOLD ( US$/oz) 1,768.21 0.23 WTI crude oil US spot (US$/barrel) 71.64 0.84 CPO spot price (RM/tonne) 3,529.00 (0.21) ———————————————————————————————————————— 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 | June 21, 2021 Global Economic News India will hold off on exports of coronavirus vaccines until a “significant proportion” of its domestic population is inoculated, the head of the country’s Covid-19 task force told the Associated Press. There is no exact time frame on a lifting of restrictions on vaccine exports, the report said, citing an interview with Vinod K Paul. While a resumption is still “on the radar,” another factor that India will consider before doing so is when vaccine stockpiles are visible, he said. (Bloomberg) Malaysia Economic News Efforts to revive Malaysia-Egypt bilateral relations and cooperation, especially in the political and economic context, were discussed by Prime Minister Tan Sri Muhyiddin Yassin and Egyptian President Abdel Fattah Al Sisi. Muhyiddin said the discussion also touched on issues of mutual interest, especially in fostering greater cooperation in economy, trade, education, tourism and infrastructure development. (Bernama) The Ministry of Health (MOH) has given its assurance that all individuals who have registered for vaccination in the MySejahtera app will be given appointment dates to receive the vaccine. As such, Deputy Minister Datuk Dr Noor Azmi Ghazali said the public need not worry about that as the government had secured adequate access to the vaccine and the next batch expected to arrive in Jul would be in a large quantity. (Bernama) The government is looking into requests from industry players to allow business operations to be extended to 10pm during the Movement Control Order (MCO) 3.0, said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed. He said there were different opinions on the matter. (Bernama) The BioNTech SE Covid-19 vaccine triggered “substantially higher” levels of antibodies compared to the Chinese-made Sinovac jab, the South China Morning Post reported, citing a study by the University of Hong Kong. The results suggested some recipients of the Sinovac vaccine may need a third shot, the newspaper said, citing lead researcher Benjamin Cowling. The epidemiologist led the government-commissioned study that tracked antibody responses of 1,000 vaccinated people. (Bloomberg) The third phase of the National Covid-19 Immunisation Programme in the Klang Valley will begin 21 Jun at the National Stadium vaccination centre (PPV) in Bukit Jalil, said the programme's coordinating minister Khairy Jamaluddin. Khairy, who is also the Minister of Science, Technology and Innovation, said this is because 99% of senior citizens in the Klang Valley and 88% in Selangor who had registered for vaccination have either received the first dose of the vaccine jab or received their appointment date. (Bernama) Prime Minister Tan Sri Muhyiddin Yassin is confident that Malaysia's target to achieve herd immunity as projected by the National Recovery Plan can be completed as scheduled following the increase in the supply of Covid-19 vaccines by the country's major suppliers. He said towards this, the government would work harder to ensure that the supplies arrive in the country on schedule. (Bernama) As Malaysia seeks to achieve herd immunity status towards the end of the year, the authorities have explored various avenues to ensure more people have access to the Covid-19 vaccine, especially among the rural communities. According to the Covid-19 Vaccine Supply Access Guarantee Special Committee (JKJAV), the government has been rolling out Covid-19 outreach vaccination 2 Malaysia Daybreak | June 21, 2021 programmes that target people living in remote areas, including the Orang Asli cummunity. (The Edge Markets) Proof of Covid-19 vaccination may be made a requirement for interstate and foreign travel once more people are fully vaccinated, said Health director-general Tan Sri Dr Noor Hisham Abdullah. The vaccine passport proposal is one of the measures being considered for interstate and international travel, Astro Awani quoted him as saying on its news portal. (The Edge Markets) The government is looking into requests from industry players to allow business operations to be extended to 10pm during the Movement Control Order (MCO) 3.0, said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed. He said there were different opinions on the matter. “…we have two sides here... the first, Malaysians who want regulations to be tightened even further when cases keep hovering at 5,000 to 6,000 cases. That means the government needs to ensure not many economic sectors are opened. Then there is the other group comprising traders, restaurant owners, small and medium enterprises (SMEs) who have been under pressure for more than a year and are hoping the government will be more flexible,” he said after checking on a Covid-19 vaccination outreach program. (Bernama) The report on the 12th Malaysia Plan (12MP) will take into account all factors related to the ongoing situation and post-Covid-19, including the National Recovery Plan (NRP), said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed. He said the 12MP is almost completed at 97% and will be presented to the Cabinet soon. (Bernama) The Bukit Jalil National Stadium vaccination centre (PPV) is expected to start operations from 21 Jun with a capacity to administer up to 10,000 doses per day, said Youth and Sports Minister Datuk Seri Reezal Merican Naina Merican.