*Maybank Kim Eng Kopi-O (21 Oct 2021)*
Nikkei 29255.6 0.14%
Kospi 3013.1 -0.53%
SSE 3587.0 -0.17%
HSI 26136.0 1.35%
TWSE 16887.8 -0.08%
SET 1637.6 0.44%
JCI 6656.0 -
STI 3198.1 -0.03%
KLCI 1606.3 0.02%
*MKE Key Calls*
*CTOS Digital Berhad - Briefing Note*
CTOS outlook appears favourable given its new products line-up, as well as resilient earnings growth drivers. The compromise assessment has been completed following the independent IT security firm testing, with no breach identified within CTOS’ internal systems. With this report having been submitted to BNM for consideration, we believe the outcome will be favourable. Maintain BUY, with marginally higher TP of MYR2.35, based on 2.8x FY22 PEG target (in-line with global peer basket mean).
*MY*
o Expect market to be volatile ahead of key economic statistics in the US (PMI, jobs stats) and Malaysia (CPI). O&G and plantation stocks, however, may continue to gain traction after commodity prices edged higher yesterday. Technically, we expect the benchmark index to range between 1,580 and 1,620, with supports at 1,577 and 1,555.
o *CIMB Group Holdings (CIMB MK)*: The key takeaway from our meeting with management is that asset quality continues to be stable despite the lockdowns, and the percentage of loans under PRA has been stable. Expect one-off mod losses and goodwill writeoff to feature in 2H21, but this would be within expectations, as would higher credit costs on a HoH basis. On updating our parameters, we maintain our HOLD call on CIMB with a marginally higher TP of MYR5.50 (+30sen) on a CY22 PBV of 0.9x (ROE: 9.2%) – prefer Public Bank for bigcap exposure.
o *Bintai Kinden (BKC MK)*: Its subsidiary Bintai Healthcare S/B (BHSB) had entered into a distribution agreement with Scientillence S/B to appoint BHSB as a non-exclusive distributor of Hemodialyzers/IBP in Malaysia. The agreement is for a one-year period, with the option to be extended for additional five years. Stock is trading at a P/B of 1.5x.
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