*Maybank Kim Eng Kopi-O (19 Nov 2021)*
Nikkei 29598.7 -0.30%
Kospi 2947.4 -0.51%
SSE 3520.7 -0.47%
HSI 25319.7 -1.29%
TWSE 17841.4 0.44%
SET 1651.0 0.39%
JCI 6636.5 -0.59%
STI 3237.0 0.13%
KLCI 1523.8 -0.09%
*MKE Key Calls*
*Sime Darby Plantation - A record year in the making*
9M21 core PATMI beat our/consensus expectations. We expect a decent 4Q21 core PATMI performance (on lofty CPO ASP) to help lift overall core PATMI for FY21E to above MYR2b (+107% YoY). We raise SDPL to BUY (from HOLD) given attractive upside to our revised RNAV-TP of MYR4.47 (previously MYR4.58) based on unchanged 0.45x RNAV peg. Upside catalyst to our FY22E DPS will come from successful disposal of some of its non-strategic assets/ estates.
*MY*
o The KLCI will likely continue its pattern of range-bound trading after Wall Street ended mixed overnight. Profit taking could accelerate ahead of the weekend break but O&G and plantation stocks may gain traction after commodity prices strengthened. Investors will also stay cautious during earnings season. Technically, we expect the benchmark index to range between 1,520 and 1,540 today, with supports at 1,515 and 1,500.
o *Berjaya Sports Toto (BST MK)*: BST generated a 1QFY6/22 net loss following the FMCO but we had expected this. Positively, BST declared a first interim DPS of 1.0sen when we had expected none due to the aforementioned net loss. We expect STM NFO sales to recover going forward even with the Kedah ban. Maintain our earnings estimates, dividends estimates and MYR2.29 DCF-based TP. We continue to like BST as a laggard recovery play which offers high dividend yields (>7% p.a. from FY23E onwards). Maintain BUY.
o *Kejuruteraan Asastera (KASB)*: Its indirect subsidiaries KAB Gree Solar Thai Co., Ltd. and Energy Optimisation (Thailand) Co., Ltd. has secured three new projects for grid connected photovoltaic solar systems with an estimated aggregate capacity of 4,537 kilowatt-peak in Thailand through six power purchase agreements with total estimated value of MYR55.7m. This will help to replenish its outstanding order book for its RE segment which stood at MYR200m as at 30 Jun 2021. KASB also has a M&E division, which was sitting on an order book of MYR361m. Its total pipeline of about MYR561m (at end-Jun) is equivalent to about 3.7x its FY20 revenue.
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