*Maybank Kim Eng Kopi-O (18 Nov 2021)*
Nikkei 29688.3 -0.40%
Kospi 2962.4 -1.16%
SSE 3537.4 0.44%
HSI 25650.1 -0.25%
TWSE 17764.0 0.40%
SET 1644.6 0.04%
JCI 6675.8 0.37%
STI 3232.7 -0.19%
KLCI 1525.1 0.15%
*MKE Key Calls*
*IHH Healthcare - Maintaining resilience*
We maintain BUY on IHH with a higher SOP-derived TP of RM7.36. Through its regional presence, IHH should be well-positioned to benefit from the transition towards normalcy as travel restrictions ease by varying degrees across different markets. We think the market should look past potentially weaker 2H21 on lower Covid-19-related revenues as IHH’s core operations in Malaysia and Singapore are likely headed for a full recovery by FY23E.
*MY*
O After rising for two consecutive days, the KLCI may take a breather today, particularly after Wall Street tanked overnight. Sentiment will stay cautious as investors switch their focus to earnings season. That said, exporters could be in the spotlight after USD strengthened against MYR. Technically, we expect the benchmark index to range between 1,520 and 1,540 today, with supports at 1,515 and 1,500.
o *Kimlun (KICB MK)*: Its wholly-owned subsidiary Kimlun S/B was awarded a MYR780m contract by Samling Resources S/B to undertake construction and maintenance works for the Sarawak-Sabah Link Road construction project. The latest award will help to replenish its outstanding construction order book which stood at approximately MYR0.8b as at 30 Jun 2021. Another observation: 1H21 net profit was already at 144% of FY20 PATMI. Stock trades at 8x consensus FY22 EPS.
o *T7 Global (T7G MK)*: Its wholly-owned subsidiary Tanjung Offshore Services S/B had received two letters of award with a combined value of approximately MYR150m, based on management’s best estimates and the agreed rates as stipulated in the letters of award. The contracts were secured by its energy division for integrated well services, operations and maintenance businesses. A higher oil price environment should bode well for T7G. Stock trades at 34.5x annualized 1H21 EPS.
o *Gagasan Nadi (GNCB MK)*: Its wholly-owned subsidiary Nadi Cergas S/B was awarded a contract by PNB Merdeka Ventures S/B to construct a mosque at the Merdeka 118 project in Kuala Lumpur. The contract, which is worth MYR33.9m, is for a duration of 18 months commencing on 1 Dec 2021. This is GNCB's third construction contract win of the year, lifting YTD win to MYR516.3m (2.5x its FY20 revenue). Stock is trading at 10x annualised 1H21 EPS.
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