*Maybank Kim Eng Kopi-O (26 Nov 2021)*
Nikkei 29499.3 0.67%
Kospi 2980.3 -0.47%
SSE 3584.2 -0.24%
HSI 24740.2 0.22%
TWSE 17654.2 0.07%
SET 1648.5 -0.08%
JCI 6699.3 0.24%
STI 3221.5 -0.17%
KLCI 1517.6 -0.31%
*MKE Key Calls*
*Genting Bhd - Still a good recovery play, in our view*
Results disappointed largely due to RWLV taking longer than expected to ramp up due to surging new COVID-19 cases in the United States. We widen our FY21E core net loss by 76%, cut FY22E core net profit by 38% but tweak FY23E core net profit by +4% (to account for higher GENP earnings). Consequently, we trim our SOP-TP to MYR5.45 from MYR5.58. Notwithstanding, we continue to like GENT as a liquid recovery play. Maintain BUY.
*MY*
o The KLCI will likely continue its pattern of range-bound trading amid lack of fresh catalysts. Worries over faster Fed tightening and pre-weekend selling may also weigh on sentiment. That said, exporters will remain in the limelight after USD strengthened against MYR. Technically, we expect the benchmark index to range between 1,510 and 1,530 today, with supports at 1,515 and 1,500.
o *Tenaga Nasional (TNB MK)*: 3Q21 results were in line with our forecasts, but ahead of consensus, with additional LPL impairment and bad debt provisions being again excluded from normalised earnings. RP3 (2022-2024) terms are being finalised, and we do not expect TNB to be worse-off. Reiterate BUY with an unchanged MYR12.00 TP (DCF-based). Valuations are compelling, and TNB has the balance sheet strength to fund its sustainability ambition.
o *Pesona Metro (PESONA MK)*: Its wholly-owned subsidiary Pesona Metro S/B was awarded a main contract works for a mixed development project at Kajang. The project, which is worth MYR297.6m, is for a duration of 122 weeks commencing from the date of site possession. The latest award will help to replenish the outstanding order book which stood at MYR0.9b at end-Jun 2021. With 1H21 PATMI of MYR7.9m, PESONA’s turnaround is intact. Stock trades at a P/B of 1.1x. On an annualized basis, the stock is trading at 11.5x annualized 1H21 EPS.
o *Kobay Technology (KOBAY MK)*: Reported a 86% YoY jump in 1QFY6/22 PATMI, mainly attributable to stronger contribution from its manufacturing activities as a result of high-margin product mix. No dividend was declared for the current quarter. KOBAY is set to ride on strong global demand and tight supply for the semiconductor/ E&E industries as well as its expansion into aluminum frames manufacturing for solar panels. Stock trades at 43.6x consensus FY6/22 EPS.
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