*Maybank Kim Eng Kopi-O (3 Nov 2021)*
Nikkei 29520.9 -0.43%
Kospi 3013.5 1.16%
SSE 3505.6 -1.10%
HSI 25099.7 -0.22%
TWSE 17066.0 -0.01%
SET 1617.9 0.25%
JCI 6493.3 -0.91%
STI 3232.4 0.41%
KLCI 1537.6 0.44%
*MKE Key Calls*
*Thailand Healthcare - Covid income*
Maintain our NEUTRAL view and revise up the TPs for all four hospital operators because of stronger Covid-related income for 3Q21E. We raise our TP for BH the most by 6.7% (to THB160), CHG by 4.9% (to THB25), BDMS 4.2% (to THB25) and BCH by 4% (to THB21). For BH and BDMS, the re-opening from 1 November could lead to an accelerated recovery in revenues and profit in FY22E as about two-thirds of BH’s income is from international patients and 30% for BDMS.
*MY*
o Expect the KLCI to extend its gain after Wall Street ended firmer overnight. Rotational buying into growth stocks, such as technology, energy and transportation, will help support the broader market. That said, sentiment will remain cautious ahead of the FOMC meeting and Bank Negara’s OPR decision. Technically, we expect the benchmark index to range between 1,520 and 1,550, with supports at 1,515 and 1,500.
o *Nestle Malaysia (NESZ MK)*: NESZ’s 3Q21 results were in line with our/consensus expectations. We expect sales momentum to remain strong going forward, benefitting from higher consumer mobility and year-end festive celebrations. No change to our earnings estimates pending NESZ’s analyst briefing today. Maintain SELL with an unchanged DCF-TP of MYR103.35 (WACC: 6.3%, LT growth: 2.5%) on rich valuations.
o *Ibraco (IBRA MK)*: Was awarded a MYR375m contract by Lestari Asiabina S/B to undertake turnkey construction for various components in Kuching. The project award will help to replenish the outstanding order book which stood at MYR28.8m at end-Jun 2021. A strong pipeline is important as its construction unit was in the red in 1H21. IBRA’s key earnings contributor, however, lies with its property development unit, which accounted for approximately 68% of its 1H21 segmental profit. Stock trades at 7.1x consensus FY22 EPS.
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