*Maybank Kim Eng Kopi-O (24 Nov 2021)*
Nikkei 29774.1 -
Kospi 2997.3 -0.53%
SSE 3589.1 0.20%
HSI 24651.6 -1.20%
TWSE 17666.1 -0.77%
SET 1646.4 -0.19%
JCI 6677.9 -0.68%
STI 3227.5 -0.30%
KLCI 1522.9 -0.26%
*MKE Key Calls*
*Kuala Lumpur Kepong - A strong finish to FY21*
FY21 core PATMI beat our/street expectations on better-than-expected plantation and associate contributions. FY22 outlook is still promising following completion of its upstream acquisitions (~75k ha planted or +34% to existing planted area) amidst elevated CPO ASP, and sustained associate’s earnings prospects. Following our PATMI upgrade, KLK remains our top large cap BUY with a new TP of MYR30.70.
*MY*
o Market could be volatile after Wall Street ended mixed overnight. Sentiment will also stay cautious during earnings season. Locally, exporters could steal the limelight after USD strengthened against MYR while O&G stocks should also benefit from higher oil prices. Technically, we expect the benchmark index to range between 1,515 and 1,535 today, with supports at 1,515 and 1,500.
o *Boustead Plantations (BPLANT MK)*: 3Q21 results beat our expectations due to high CPO ASP achieved and lower-than-expected cost. BPLANT proceeded to reward shareholders with a 3rd interim DPS of 1.75sen (ex-date: 8 Dec), bringing 9M DPS to 4.35sen. We raise FY21E DPS to 6sen (from 3.6sen). BPLANT remains a BUY and is a prime privatisation target. Following our PATMI upgrade, we raise our RNAV-TP to MYR0.93 (from MYR0.90). Our FY22E EPS has yet to incorporate a proposed land disposal gain of MYR323m (14.4sen/sh).
o *TSH Resources (TSH MK)*: 9M21 core PATMI exceeded our/street estimates on high CPO ASP achieved. Strong earnings momentum is likely to sustain into 4Q21 given still good CPO ASP. Following our earnings revision, we tweaked our TP to MYR1.48 on 20x FY22E PER peg (updated -1SD 5Y mean) from MYR1.46 on 21x FY22E PER. Maintain BUY.
o *Prestar (PRST MK)*: Reported a 361% YoY jump in 3Q21 PATMI, lifting 9M21 net profit to MYR61.7m (+862% YoY). The stronger 9M21 results were mainly attributable to a 26% YoY increase in revenue, margin expansion and higher share of profit of associates. It also declared a second single-tier interim dividend of 2sen/sh. PRST is engaged in the trading and manufacturing of steel related products, and should benefit from the relaxation of MCO. Stock trades at 2.6x annualized 9M21 EPS. Net gearing stood at approximately 0.5x at end-Sep 2021.
o *Radiant Globaltec (RGTB MK)*: Returned to the black in 3Q21 with a PAT of MYR0.7m, which brought 9M21 PAT to MYR4m (9M21 LAT: MYR1.3m). The stronger 9M21 PAT was attributable to its hardware and maintenance segment. With 9M21 PAT already exceeding FY20 PAT of MYR2.2m, RGTB is on track to end the year on a stronger. No dividend was declared for the quarter. Stock is trading at 8.3x annualized 9M21 EPS.
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