Kenanga Today

22 May 2020

By Ahmad Ramzani Bin Ramli I [email protected]

BURSA 21-May Day chg % chg KLCI 1,452.1 16.99 1.18% Research Highlights FTSE EMAS 10,305.1 141.5 1.39% FTSE Smallcap 12,058.0 67.57 0.56% NEWS HIGHLIGHTS FTSE MESDAQ 5,508.6 47.6 0.87% ò Digi to host first fully virtual AGM on June 1 KLSE Mkt Cap 1,475.5 20.5 1.41% (RM'b) ò Margin squeeze pushes UEM Edgenta's 1Q profit to lowest since 2016 BURSA DAILY TRADING PARTICIPATION Participation Net (RM’m) Value (%) ò Covid-19 rush boosts Apex Healthcare’s 1Q sales, but group says Local Institution 201.0 45.4% demand may not sustain Local Retail -22.1 37.0% Foreign -178.9 17.6% ò KUB returns to the black with RM4.9m 1Q net profit ò HeiTech Padu bags RM126.0m contract from JPJ INDICES 21 -May Day chg % chg Dow Jones 24,474.1 -101.8 -0.41% MACRO BITS S&P 500 2,948.5 -23.1 -0.78% NASDAQ 9,284.9 -90.9 -0.97% ò Global coronavirus cases surpass 5 million, infections rising in FTSE-100 6,015.3 -51.9 -0.86% South America Nikkei 225 20,552.3 -42.8 -0.21% ò Pompeo calls virus response 'paltry' compared to damage SHCOMP 2,867.9 -15.8 -0.55% done HSI 24,280.0 -119.9 -0.49% STI 2,555.3 -6.6 -0.26% ò Covid-19: 34 of 50 new cases today linked to new KL cluster KOSPI 1,998.3 8.7 0.44% TWSE 11,008.3 100.5 0.92% ò resumes CPO exports to JCI N/A N/A N/A ò All sectors except services saw labour productivity drop in 1Q — SET 1,320.7 -1.5 -0.11% DOSM

FOREX 21 -May 20 -May % chg ò China set to implement its first civil code, as private investment USD/MYR: 4.3457 4.3525 -0.16% slows EUR/USD: 1.0985 1.0954 0.28% GBP/USD: 1.2229 1.2268 -0.32% ò Japan may end Tokyo state of emergency as early as next week: USD/YEN: 107.72 107.60 0.11% PM USD/SGD: 1.4147 1.4154 -0.05% ò Thailand's anti-virus USD1.57b govt savings bonds sold out in a USD/HKD: 7.7520 7.7502 0.02% week

KEY STATS ò U.S. orders 300 million doses of potential COVID-19 vaccine KLCI Spot ò U.S. weekly jobless claims grind lower but backlogs, layoffs linger Vol (m shares): 7,152.5 6,736.1 6.18% Value (RMm): 4,655.9 3,636.2 28.04% ò Euro zone slump eased in May but still sharp KL CI Future May-20 1,448.5 1,431.0 1.22% ò Italy has come out of worst part of virus emergency: PM June-20 1,445.0 1,427.5 1.23% CPO Price 2,207.0 2,159.0 2.22% IDEAS OF THE DAY (SEE SEPARATE REPORTS FOR DETAILS) (RM/tonne) ò Results Note: SIME, MBMR, KOSSAN, BAT, , , Soybean (US$/bu) 835.0 846.8 -1.39% MEDIA, SUNCON, TSH, OCK, SIMEPROP, CMMT, GENTING, GENM SoyOil (USc/lb) 27.3 27.5 -0.84% Gold (US$/troy oz) 1,721.9 1,752.1 -1.72% ò Company Update: SUPERMX, TOPGLOV, MPI, TGUAN Nymex crude oil 33.9 33.5 1.28% (US$/bbl) ò On Our Technical Watch: SLVEST, YTL Latex (RM/kg) 4.44 4.42 0.45% Tin (US$/mt) 15,649.0 15,651.0 -0.01% ò Rating Summary

# Top Volume Top Gainer Top Loser %Chg Vol %Chg Vol %Chg Stock Price Stock Price Stock Price Vol (m) (+/-) (m) (+/-) (m) (+/-) 1 GENM 2.36 0.0 20.30 PETGAS 17.12 12.8 4.63 AXIATA 3.77 -2.3 8.20 2 HARTA 10.00 6.2 17.90 TOPGLOV 11.66 8.0 15.10 HAPSENG 7.12 -1.8 0.21 3 CIMB 3.56 2.3 15.30 HARTA 10.00 6.2 17.90 TENAGA 12.24 -1.6 2.49 4 TOPGLOV 11.66 8.0 15.10 PCHEM 6.17 5.7 3.98 DIGI 4.40 -1.6 3.24 5 PBBANK 15.48 0.1 13.90 IOICORP 4.50 5.1 3.82 PPB 16.74 -1.1 0.17 6 GENTING 4.08 0.3 9.53 KLK 21.86 2.7 0.56 NESTLE 137.50 -0.8 0.05 7 SIME 2.02 0.5 8.70 AMBANK 3.06 2.7 2.94 HLBANK 13.48 -0.3 0.75 8 AXIATA 3.77 -2.3 8.20 CIMB 3.56 2.3 15.30 GENM 2.36 0.0 20.30 9 DIALOG 3.68 1.1 6.88 HLFG 13.30 1.5 0.12 AIRPORT 4.93 0.0 4.23 10 MAYBANK 7.51 0.3 6.72 RHBBANK 4.82 1.5 1.86 MAXIS 5.30 0.0 1.99 Notes: # KL Composite Index (FBMKLCI) component stocks

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Kenanga Today

22 May 2020

Corporate News

• Digi to host first fully virtual AGM on June 1 Digi.Com Bhd will hold its fully virtual annual general meeting (AGM), conducted via live-streaming and online voting, on June 1 at 10am. In a statement, Digi said it was taking all necessary precaution to safeguard the well-being of shareholders and minimise the risk of Covid-19 infections. Digi said the AGM will be broadcast live from its headquarters located in Subang Jaya, Selangor. Digi said only minimal essential individuals involved in conducting the AGM will be physically present at the broadcast venue, with full adherence to the standard health and safety operating procedures for businesses during the Conditional Movement Control Order (CMCO), as set out by the government. (The Edge)

• Margin squeeze pushes UEM Edgenta's 1Q profit to lowest since 2016

UEM Edgenta Bhd's net profit dropped 65.84% in the first quarter ended March 31, 2020 (1QFY20) to RM11.2m from RM32.7m in the corresponding quarter a year ago, amid margin squeeze due to rising operating costs in its key segments. Quarterly earnings per share sank to 1.34 sen from 3.93 sen in 1QFY19, according to the asset management and infrastructure solutions provider's stock exchange filing. (The Edge)

• Covid-19 rush boosts Apex Healthcare’s 1Q sales, but group says demand may not sustain Apex Healthcare Bhd’s first quarter net profit rose 26.06% to RM14.4m, from RM11.4m a year earlier, as the Covid-19 outbreak boosted pharmaceutical product sales in Malaysia and . Earnings per share for the quarter ended March 31, 2020 rose to 3.05 sen, from 2.43 sen previously. “Growth is largely attributed to heightened market demand precipitated by the growing Covid-19 pandemic, leading to increased purchases by our customers in order to ensure uninterrupted supplies,” the group said in its exchange filing. (The Edge)

• KUB returns to the black with RM4.9m 1Q net profit

Conglomerate KUB Malaysia Bhd kicked off its financial year 2020 (FY20) with a first-quarter (1Q) net profit of RM4.93m, compared with a net loss of RM69,000 last year, thanks to higher revenue and the return to profit in its agro division. Revenue for the three months ended March 31 rose 7% year-on-year to RM109.4m from RM102.3m, contributed by revenue expansion in all business segments except for its ICT division, the group's stock exchange filing showed. (The Edge)

• HeiTech Padu bags RM126.0m contract from JPJ HeiTech Padu Bhd has bagged a RM126.0m maintenance and technical support services contract from the Road Transport Department of Malaysia (JPJ). In a filing with , HeiTech Padu said it inked the letter of award for the job, which involves the maintenance and technical support services for hardware and software of mainframe systems. It said the contract is for 29 months. Started since May 1, 2020, it will end on Sept 30, 2022. (The Edge)

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Kenanga Today

22 May 2020

Macro Bits Global ò Global coronavirus cases surpass 5 million, infections rising in South America Global coronavirus cases surpassed 5 million on Wednesday, with Latin America overtaking the United States and Europe in the past week to report the largest portion of new daily cases globally. (Reuters) ò Pompeo calls China virus response 'paltry' compared to damage done U.S. Secretary of State Mike Pompeo took fresh aim at China over the coronavirus on Wednesday, calling the USD2.0b Beijing has pledged to fight the pandemic “paltry” compared to the hundreds of thousands of lives lost and trillions of dollars of damage. (Reuters) Malaysia ò Covid-19: 34 of 50 new cases today linked to new KL cluster Malaysia’s Covid-19 new cases jumped to 50 today, of which 47 were local transmissions, while three were imported cases, according to the Ministry of Health (MoH). (The Edge Markets) ò Malaysia resumes CPO exports to India Malaysia has resumed crude palm oil (CPO) exports to India as the latter has started buying the commodity again from Malaysia after barring such imports in recent months. (The Edge Markets) ò All sectors except services saw labour productivity drop in 1Q — DOSM Malaysia’s labour productivity, measured as a ratio of value added to employment, declined 0.8% in the first quarter of this year (1Q20), compared to a growth of 1.4% in 4Q19, led by declines in the agriculture and construction sectors. (The Edge Markets)

Asia Pacific ò China set to implement its first civil code, as private investment slows China’s parliament is poised to enact its first civil code, a wide-ranging legislative package that includes strengthening protection of property rights in a Communist Party-ruled country whose embrace of private ownership has long been awkward. (Reuters) ò Japan may end Tokyo state of emergency as early as next week: PM Japan may lift the state of emergency in Tokyo as early as next week if new coronavirus infections remain low, Prime Minister Shinzo Abe said on Thursday, raising hopes that the world’s third-largest economy may soon start recovering from recession. (Reuters) ò Thailand's anti-virus USD1.57b govt savings bonds sold out in a week Thailand has sold THB50.0b (USD1.57b) of government savings bonds in a week as it seeks to finance steps to mitigate the fallout of the coronavirus outbreak, the finance ministry said on Thursday. (Reuters)

Americas ò U.S. orders 300 million doses of potential COVID-19 vaccine The U.S. government has ordered 300 million doses of a potential COVID-19 virus being developed by AstraZeneca and Oxford University and hopes first doses can be made available by October, the Department of Health and Human Services said on Thursday. (Reuters) ò U.S. weekly jobless claims grind lower but backlogs, layoffs linger Millions more Americans filed for unemployment benefits last week as backlogs in processing claims continue to be cleared and disruptions from the novel coronavirus unleash a second wave of layoffs, pointing to another month of staggering job losses in May. (Reuters)

Europe ò Euro zone slump eased in May but still sharp The devastating impact of the coronavirus on the euro zone economy abated a little this month as some government-imposed lockdown measures introduced to contain the spread of the virus were eased, a survey showed. (Reuters) ò Italy has come out of worst part of virus emergency: PM Italy has left the worst part of the COVID-19 emergency behind and as lockdown restrictions are slowly lifted the country must now enter the new phase with confidence and responsibility, Prime Minister Giuseppe Conte said on Thursday. (Reuters)

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Kenanga Today

22 May 2020

List of Oversold Stocks (14-Day RSI<30-mark) NAME* LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D ATLAN HOLDINGS BERHAD 3.750 26.96 23.97 6.05 3.680 *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 PANSAR BHD 0.805 91.52 96.46 99.94 0.810 SUPERMAX CORP BHD 5.400 91.04 91.98 93.24 5.490 BURSA MALAYSIA BHD 7.750 88.09 90.50 91.29 7.900 APEX HEALTHCARE BHD 2.900 84.58 89.98 92.10 2.970 PHARMANIAGA BERHAD 2.360 83.74 89.66 96.65 2.490 MALAYAN UNITED INDUSTRIES BH 0.185 82.91 92.09 99.68 0.185 RCE CAPITAL BHD 1.900 82.51 88.82 96.28 1.920 MEGA FIRST CORP BHD 6.040 82.22 89.97 99.07 6.070 HARTALEGA HOLDINGS BHD 10.000 81.92 85.37 93.10 10.160 COMFORT GLOVE BHD 2.760 80.61 80.41 83.61 2.910 Y.S.P.SOUTHEAST HOLDING 2.260 78.20 85.64 96.93 2.260 GUAN CHONG BHD 2.890 78.06 85.32 96.67 2.900 DIALOG GROUP BHD 3.680 77.80 84.95 93.07 3.690 FGV HOLDINGS BHD 1.200 77.72 85.22 97.14 1.220 CB INDUSTRIAL PRODUCT HLDG 0.955 77.54 84.96 82.55 0.990 NTPM HOLDINGS BHD 0.595 76.72 81.08 91.86 0.615 UCHI TECHNOLOGIES BHD 2.620 76.70 87.15 97.29 2.640 MY EG SERVICES BHD 1.480 76.35 81.36 93.27 1.530 N2N CONNECT BHD 0.820 75.69 76.44 61.49 0.905 CAREPLUS GROUP BHD 0.945 75.46 74.24 69.95 1.180 SCGM BHD 1.810 74.94 80.70 92.26 1.840 DAIBOCHI BHD 2.410 74.93 82.64 94.63 2.440 GD EXPRESS CARRIER BHD 0.320 74.31 75.00 50.21 0.360 IHH HEALTHCARE BHD 5.700 73.84 83.92 98.61 5.880 DUFU TECHNOLOGY CORP BHD 4.650 73.07 75.88 57.13 4.860 KUMPULAN FIMA BHD 1.470 72.94 78.71 87.05 1.510 PERUSAHAAN SADUR TIMAH MALAY 4.300 72.25 78.62 92.12 4.340 SARAWAK OIL PALMS BERHAD 2.950 71.18 81.51 97.33 3.000 DATASONIC GROUP BHD 1.340 71.06 76.53 88.65 1.390 SCICOM (MSC) BHD 1.000 70.91 73.93 62.71 1.090 *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 FTSE Bursa Ma-AF 0.445 28.48 21.45 2.71 0.435 30/9/2020 FTSE BURSA MA-R 0.150 29.83 19.50 5.37 0.145 30/10/2020 Source: Bloomberg

List of Overbought Warrants (14-Day RSI>70-mark) NAME LAST PRICE RSI_14D RSI_9D RSI_3D LOW 30D EXPIRY DATE COR-C73 0.590 92.54 92.17 93.73 0.600 24/12/2020 PNE PCB BHD-WA 0.625 91.47 95.88 99.38 0.650 16/12/2024 KOSSAN RUBBER-C6 0.610 90.90 91.54 94.96 0.610 24/12/2020 KOSSAN RUBBER-C5 0.755 90.07 91.95 95.00 0.765 15/1/2021 SUPERMAX CORP-C86 1.170 88.13 88.40 89.19 1.250 27/10/2020 BURSA MALAYSI-C27 0.405 86.60 88.28 88.62 0.530 30/10/2020 FGV HOLDINGS-C84 0.160 81.94 89.64 98.37 0.165 30/10/2020 LOTUS KFM BHD-WB 0.145 80.64 84.48 89.72 0.145 25/11/2024 MY EG SERVICE-C92 0.205 77.48 82.69 93.88 0.220 30/11/2020 ICON OFFSHORE BHD-WA 0.080 76.55 81.48 88.25 0.095 13/2/2028 FGV HOLDINGS-C94 0.115 76.49 82.19 94.57 0.115 25/11/2020 ASIA KNIGHT BHD-WB 0.115 76.40 81.06 89.69 0.120 14/5/2023 MY EG SERVICE-C90 0.170 75.53 81.74 94.73 0.180 11/9/2020 SCGM BHD-WA 0.080 73.72 79.98 93.68 0.170 31/7/2020 FGV HOLDINGS-C83 0.180 72.95 84.16 98.17 0.180 30/7/2020 MY EG SERVICE-C87 0.085 72.74 78.10 93.00 0.100 12/10/2020 DATASONIC GRO-C12 0.115 71.67 78.32 89.93 0.130 30/7/2020 POS MALAYSIA-C47 0.055 71.38 74.45 67.55 0.065 9/11/2020 IHH HEALTHCAR-C18 0.135 71.16 77.35 93.66 0.145 29/3/2021 Source: Bloomberg

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Kenanga Today

22 May 2020

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 , Malaysia Telephone: (603) 2172 0880 Website: www.kenanga.com.my E-mail: [email protected]

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