*Maybank Kim Eng Kopi-O (16 Nov 2021)*
Nikkei 29776.8 0.56%
Kospi 2999.5 1.03%
SSE 3533.3 -0.16%
HSI 25390.9 0.25%
TWSE 17634.5 0.66%
SET 1638.7 0.29%
JCI 6616.0 -0.53%
STI 3240.6 0.38%
KLCI 1522.3 -0.58%
*MKE Key Calls*
*UMS Holdings - Preparing for growth*
3Q21 PATMI of SGD15.1m (+17% YoY) was in line with our estimate and ahead of consensus’. 9M21 PATMI accounted for 71%/76% of our/ street’s FY21E. We maintain FY21E, but increase FY22-23E EPS by 2-8% to factor in i) increased capex and still robust semicon equipment outlook, and ii) a higher labour cost environment. 4Q21 should be sequentially stronger. Maintain BUY with a higher TP of SGD1.71 (15x FY22E P/E).
*MY*
o Expect market to be choppy after Wall Street ended mixed overnight. Sentiment will stay cautious ahead of key statistics such as Industrial Production and Retail Sales in the US, which is set to be released tonight. Locally, easing crude oil price prices may weigh on O&G stocks. Technically, we expect the KLCI to range between 1,515 and 1,535, with supports at 1,515 and 1,500.
o *Yinson Holdings (YNS MK)*: We are positive on this latest Petrobras job win. Yinson’s latest PDB deal is a much-improved version of its previous ones (1st in 2H19 & 2nd in 1H21; on DCRs, terms). It is also comparatively better than Marlim 2 (similar in capex/size), which has led us to raise our SOP-based TP by 6%. Our new TP incorporates the PDB impact (15% P-IRR, 9.5% WACC, 22.5 year charter, residual value) & the higher MYR1.2b rights issue effect. TP raised to MYR11.55; BUY.
o *Econpile (ECON MK)*: Its wholly-owned subsidiary Econpile (M) S/B was awarded a subcontract to undertake construction works, which include piling, pile cap, secant piled wall, basement and associated works, for a mixed development at Petaling, Selangor for a total contract sum of MYR33.2m. With the latest award, ECON has secured a total of MYR55.9m worth of new projects in FY6/22, and this will help to replenish its order book which stood at MYR0.83b as at 30 Jun 2021. Stock trades at 13.4x consensus FY6/22 EPS.
o *AWC (AWCF MK)*: Bagged MYR12.7m contract by the Health Ministry to provide hospital support services for the Hospital Orang Asli Gombak. The contract is for a period of five years, commencing 1 Jan 2022. This is AWC’s first contract win in FY6/22 and is expected to lift its outstanding order book which stood at MYR861.8m as at end-Jun 2021. Stock is trading at 6.8x consensus FY6/22 EPS.
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