*Maybank Kim Eng Kopi-O (25 Oct 2021)*
Nikkei 28804.9 0.34%
Kospi 3006.2 -0.04%
SSE 3582.6 -0.34%
HSI 26126.9 0.42%
TWSE 16888.7 0.00%
SET 1643.4 -
JCI 6643.7 0.16%
STI 3205.1 0.52%
KLCI 1588.1 -0.22%
*MKE Key Calls*
*Thailand Property - 100% LTV measure till end-22*
BOT relaxed the loan-to-value (LTV) rule to 100% from 70-90% previously from 20 Oct 2021 to end- 2022. Sluggish 3Q21 results to be released in mid-Nov are already things of the past. Looking forward to a more bullish guidance for FY22E and upward adjustments of consensus earnings estimates. AP has the lowest P/E for FY21E-22E of around 6x, followed by SPALI of 7-8x. LH is likely to enjoy double-digit FY22E earnings growth from both its property business and service business via its associates.
*MY*
o Expect KLCI to trade in a cautious mode amid worries over latest Covid-19 outbreak in China. All eyes will also be on the upcoming Budget 2022 (which will be tabled on 29 Oct) as well as the US GDP data. Technically, we expect the benchmark index to range between 1,577 and 1,610, with supports at 1,577 and 1,555.
o *My EG Services (MYEG MK)*: From the management meeting, we have gained some insights on MYEG’s existing business and its expansion strategy, especially with regards to the blockchain space. On the back of its expeditious development of an innovative product line-up and a +2% earnings adjustment, we maintain our BUY call and revise TP to MYR1.34 (from MYR1.15 previously, adjusted for a 1-for-1 bonus issue), based on 28x FY22E P/E target, which is +0.5x standard deviations above its 5Y mean (24x or mean previously).
o *AME Elite Consortium (AME MK)*: AME Construction S/B, a wholly-owned subsidiary of Amsun Industries S/B which in turn is a wholly-owned subsidiary of AME, was awarded a MYR359m contract to construct a new integrated production facility, logistics warehouse and office building in Tanjung Langsat Industrial Area, Johor. The latest award is AME’s biggest job win thus far. AME’s recovery is intact. After reported a c.17% decline in FY3/21 net profit, AME has seen its 1QFY3/22 PATMI rising 36% YoY. Stock trades at 18.1x consensus FY3/23 EPS.
o *Gagasan Nadi (GNCB MK)*: Awarded development rights by Kwasa Development to develop affordable housing on two parcels of land in Petaling, Selangor. The proposed development has an estimated gross development value of MYR1b and construction value of MYR750m. This will help lift its construction order book which stood at MYR761m as at end-Jun 2021. GNCB is also sitting on unbilled property sales of MYR142m. Stock trades at 9.8x annualised 1H21 EPS.
o *KNM Group (KNMG MK)*: Awarded a contract by Bechtel International, Inc. to supply air cooled heat exchangers. The contract, which is worth approximately MYR111m, is for a duration of approximately 20 months. This is KNMG’s third contract win of the year, lifting YTD win to a total of MYR154.6m (equivalent to about 12% of FY20 revenue). Stock is trading at 42.8x annualised 1H21 EPS.
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