*Maybank Kim Eng Kopi-O (15 Nov 2021)*
Nikkei 29610.0 1.13%
Kospi 2968.8 1.50%
SSE 3539.1 0.18%
HSI 25328.0 0.32%
TWSE 17518.1 0.38%
SET 1633.9 0.09%
JCI 6651.1 -0.60%
STI 3228.5 -0.30%
KLCI 1531.2 0.81%
*MKE Key Calls*
*AirAsia Group - BUY now that everyone can fly*
FY22E will still be challenging due to Thai AirAsia’s (TAA) woes and the spectre of a PN17 classification. Yet, we turn positive as the number of new COVID-19 cases fall and fares rise. A lot of value may also be unlocked by listing its digital assets. We now forecast a FY23E core net profit of MYR255m (core net loss of MYR439m previously). Migrating our valuation methodology to SOTP from 4.0x FY23E EV/EBITDA, we raise our TP to MYR1.36 from MYR0.36 and upgrade AAGB to BUY from SELL.
*MY*
o The KLCI is set for a firm start after Wall Street ended higher last Friday. That said, sentiment will stay cautious ahead of key statistics such as Industrial Production and Retail Sales in China which are set to release later today. Technically, we expect the benchmark index to range between 1,515 and 1,550 today, with supports at 1,515 and 1,500.
o *Berjaya Sports Toto (BST MK)*: The Kedah state ban on NFO outlets will have a minimal negative impact on earnings (-4%). While Cukai Makmur will also have a negative impact on earnings (-4%), it will only be for 1 year. We trim our FY22E EPS by 8% and FY23E/FY24E EPS by 4%. Consequently, we trim our DCF-based TP to MYR2.29 from MYR2.41 but maintain our BUY call. We advise investors to BUY BST shares should there be a ‘knee jerk reaction’ to its share price today. Maintain BUY call with lower TP of MYR2.29 (-5%).
o *Samaiden (SAMAIDEN MK)*: Its wholly-owned subsidiary Samaiden S/B was awarded an EPCC contract by Bakateam Services S/B to commission a 15MWac LSSPV power plant project in Pulau Pinang. The contract, which is worth MYR60.1m, shall commence on 2 Jan 2022, to be completed within 11 months. This is Samaiden’s third contract win in FY6/22, lifting total win to MYR129.3 m (about 2.4x its FY6/21 revenue). Stock is trading at 41.5x FY6/21 EPS.
o *Haily (HAILY MK)*: Its wholly-owned subsidiary Haily Construction S/B was awarded a contract by JPY Architects S/B to construct a residential project in Kulai, Johor. The project, which is worth MYR14.6m, shall be completed within 16 months. This is the fifth project win since Haily was listed on the ACE Market in Jul 2021, lifting total win to MYR114m. Stock is trading at 13.5x annualized 1H21 EPS.
For more stock ideas and market flows, access Market Insight on Maybank Trade on Apple Store and Google Play now.
Stay Ahead, Trade Smart.