Malaysia Daybreak | 11 August 2021 FBMKLCI Index
Total Page:16
File Type:pdf, Size:1020Kb
Malaysia | August 11, 2021 Key Metrics Malaysia Daybreak | 11 August 2021 FBMKLCI Index 1,700 ▌What’s on the Table… 1,650 ———————————————————————————————————————————————————————————————————————————————————————— 1,600 1,550 Inari-Amertron Bhd – Better times ahead 1,500 The group expects to keep higher utilisation across all divisions over the next two 1,450 quarters, driven by robust RF and optoelectronics demand. Reiterate Add, with 1,400 an unchanged RM4.00 TP, still based on 34x CY22F P/E. Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 ——————————————————————————— FBMKLCI MSM Malaysia Holdings – Getting a sugar high from exports 1,496.73 6.93pts 0.47% AUG Future SEP Future We upgrade our rating on MSM to Add as it trades at an attractive P/E of 8x, 1492.5 - (0.54%) 1485 - (0.51%) offers dividend yields of 6% and a 25% upside to our revised TP of RM1.69. Key ——————————————————————————— catalysts are better refining profit margin in 2H21F, driven by higher utilisation Gainers Losers Unchanged rate due to stronger exports volumes and better efficiency. 524 446 458 ——————————————————————————— Turnover 3682.8m shares / RM2203.895m Agribusiness – The “S” in ESG risks – Part 2 3m avg volume traded 5502.55m shares 3m avg value traded RM3238.66m SD Plant clears the air on the delayed report on labour practices by Impactt. We ——————————————————————————— suspect the uncertainties over the potential impact of labour issues on planters Regional Indices FBMKLCI FSSTI JCI SET HSI may have negatively affected share prices of plantation companies. We estimate 1,497 3,207 6,088 1,543 26,606 the labour assessment report could be ready by the end of this year and are ———————————————————————————————— hopeful for some positive developments on this issue in 1H22. Market Indices Close % chg YTD % chg FBMKLCI 1,496.73 0.5 (8.0) Strategy Note – Feedback from marketing 2H21F outlook FBM100 10,707.14 0.4 (6.9) FBMSC 15,428.82 0.4 (0.9) FBMMES 7,194.21 0.3 (33.0) We presented our market and econ views for 2H21F to around 220 investors. Dow Jones 35,264.67 0.5 15.2 Investors were worried that a recovery could be delayed due to the Delta variant NASDAQ 14,788.09 (0.5) 14.7 and still high Covid-19 cases despite rising daily vaccination rates. Recent FSSTI 3,207.36 0.9 12.8 FTSE-100 7,161.04 0.4 10.8 announcements of a gradual reopening and relaxation for fully vaccinated SENSEX 54,554.66 0.3 14.2 individuals signal an inflection point towards economic recovery. Hang Seng 26,605.62 1.2 (2.3) JCI 6,088.41 (0.6) 1.8 KOSPI 3,243.19 (0.5) 12.9 Nikkei 225 27,888.15 0.2 1.6 Strategy-Landscape – Key insights into weekly flows (2/8-6/8) PCOMP 6,623.23 (0.1) (7.2) SET 1,542.62 0.2 6.4 Shanghai 3,529.93 1.0 1.6 Retail investors maintain their pole position as net buyer (2-6 Aug), buying Taiwan 17,323.64 (0.9) 17.6 Hartalega and Public Bank. Foreign investors reduce their weekly net sell by 22% ———————————————————————————————— Top Actives wow, selling Public Bank and Hartalega. Local institutional investors turned Close % chg Vol. (m) second largest net seller, selling Maybank and Hartalega. Hartalega, Petronas DAGANG NEXCHANGE 0.815 (1.2) 148.0 Chemical and MRDIY were the top three stocks in last week’s top net buy/sell AVILLION 0.160 14.3 121.4 SAUDEE GROUP 0.080 (11.1) 93.9 lists. Kossan Rubber, Supermax and Top Glove were the top three short-selling KEJURUTERAAN ASA 0.545 (1.8) 69.1 targets last week. TA WIN HLDGS 0.170 6.3 66.9 HIAP TECK VENTURE 0.550 1.9 64.5 SERBA DINAMIK 0.405 1.3 63.5 TANCO HLDGS 0.215 13.2 53.6 ———————————————————————————————— ▌News of the Day… Economic Statistics ———————————————————————————————————————————————————————————————————————————————————————— Close % chg US$/Euro 1.1721 (0.03) • Malaysia June 2021 IPI up 1.4% yoy RM/US$ (Spot) 4.2285 0.19 RM/US$ (12-mth NDF) 4.2995 (0.08) • Malaysia’s jobless rate rises for first time in four months to 4.8% in Jun OPR (%) 1.75 0.00 • Genting UK casino robbed of sum of money, casino chips by knife-wielding man GOLD ( US$/oz) 1,728.62 (0.02) WTI crude oil US spot (US$/barrel) 68.29 2.72 • Sapura Energy unit said to have awarded offshore O&G well construction CPO spot price (RM/tonne) 4,502.50 (1.22) contract to Halliburton ———————————————————————————————————————— • DNeX subsidiary acquires remaining 50% share in Avalon Oilfield Ivy NG Lee Fang, CFA T (60) 3 2261 9073 • Malaysia Airlines records 23% direct operating cost margin after using E [email protected] Amadeus systems 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 | August 11, 2021 Global Economic News The current inflation spike shouldn't push the Federal Reserve to tighten monetary policy prematurely, with more months of labor data needed before any changes as well as more certainty that the pace of price increases will remain above the Fed's 2% target, Chicago Fed president Charles Evans said. (Reuters) The Democratic-controlled US Senate passed a massive infrastructure bill and immediately kicked off debate on a US$3.5tr spending blueprint for President Joe Biden’s key priorities on climate change, universal preschool and affordable housing. The bipartisan US$1tr infrastructure bill here, which the 100-member chamber passed in a 69-30 vote, could provide the nation's biggest investment in decades in roads, bridges, airports and waterways. (Reuters) The U.S. Senate on 10 Aug is set to hand President Joe Biden a $1tr victory when it votes to pass one of the largest infrastructure investment bills in decades and then launches debate on a budget framework aimed at setting the stage for $3.5tr in additional investments. Taken together, the measures, if eventually enacted into law, would jump-start road and bridge-building projects across the United States over the next five years and new social programs over the next decade. (Reuters) French economic activity almost reached pre-pandemic levels in Jul as businesses largely shrugged off some renewed restrictions while supply difficulties increasingly constrained production. Activity was between 1% and 1.5% below normal in Jul, the highest it has been since the pandemic struck, according to the Bank of France's monthly survey of 8,500 firms. While business leaders expect a similar performance in Aug, the share of companies reporting supply difficulties rose for the third consecutive month to 49% in Jul. In construction, the measure was stable at 60%. (Bloomberg) German exports rose more than expected in Jun despite persisting supply bottlenecks in manufacturing, data showed on 9 Aug, suggesting a solid recovery in Europe's biggest economy. Seasonally adjusted exports jumped by 1.3% on the month in Jun after a slightly revised rise of 0.4% in May. Imports rose 0.6% after an increase of 3.4% the prior month. The strong rise in exports widened the trade surplus to 13.6bn euros from a revised 12.8bn euros in May. (Reuters) China's factory gate inflation in Jul rose at a faster clip from the previous month and exceeded market expectations, adding to strains on an economy losing recovery momentum as businesses struggle with high raw material costs. The world's second-biggest economy is on track to expand more than 8% this year but analysts say pent-up coronavirus demand has peaked and forecast growth to moderate amid supply chain bottlenecks and outbreaks of the Delta variant of Covid-19. The producer price index (PPI) grew 9.0% from a year earlier, matching the high seen in May, the National Bureau of Statistics (NBS) said in a statement on 9 Aug. (Reuters) Taiwan's exports rose for a 13th straight month in Jul with the stronger-than-expected pace setting a new record, as the island's manufacturers rushed production to meet a global shortage of computer chips for cars and technology gadgets. Exports rose 34.7% from a year earlier to US$37.95bn last month, the Ministry of Finance said on 9 Aug, the highest monthly figure on record. Electronics exports hit a record high in Jul at US$14.67bn, with semiconductor exports growing 34.3% from a year earlier. (Reuters) 2 Malaysia Daybreak | August 11, 2021 Malaysia Economic News Malaysia's industrial production index rose 1.4% yoy in Jun (+29.8% yoy in May). The growth in June was underpinned by the expansion of 10.3% in the mining index. Meanwhile, the manufacturing and electricity indices fell 0.2% and 4.8%, respectively. (Malay Mail) The value of construction work done in 2Q21 increased by 42.6% yoy to RM28.20bn but showed a decline of 10.5% qoq from RM31.4bn in 1Q21 due to the restrictions imposed due to the Covid-19 pandemic. (StarBiz) The government is considering giving relaxation to low-risk activities for residents in states under Phase One of the National Recovery Plan (PPN). Senior Foreign Minister (Security Cluster) Datuk Seri Hishammuddin Tun Hussein said the move was to ensure the mental health need of the people is protected.