*Maybank Kim Eng Kopi-O (8 Nov 2021)*
Nikkei 29611.6 -0.61%
Kospi 2969.3 -0.47%
SSE 3491.6 -1.00%
HSI 24870.5 -1.41%
TWSE 17296.9 1.28%
SET 1626.2 0.00%
JCI 6581.8 -0.07%
STI 3242.3 0.70%
KLCI 1531.7 0.03%
*MKE Key Calls*
*Ayala Land (ALI PM) - Near-term pain, long-term gain*
We reinitiate coverage on Ayala Land (ALI) with a BUY and a discounted RNAV-based TP of PHP46. ALI’s diversified portfolio makes it better-positioned for post-pandemic earnings recovery while its time-tested brand equity and asset-heavy model reinforce its economic moat. Over the longer term, we believe ALI is well-positioned for long-term value generation owing to its track record and strategic land bank.
*MY*
o Expect KLCI to trade in a cautious mode as market continues to digest the impact of prosperity tax. The resurgence of Covid-19 cases in China as well as the wait for Malaysia’s GDP data will also weigh on sentiment. Technically, we expect the benchmark index to range between 1,515 and 1,545 today, with supports at 1,515 and 1,500.
o *Genting Malaysia (GENM MK)*: After a 4-month delay, the New York State Gaming Commission (NYSGC) launched a Request For Information (RFI) on three downstate commercial casino licenses. We opine that GENM’s Resorts World New York City (RWNYC) is in a good position to win one. If it does, we estimate that RWNYC can accrete c.USD145m (c.MYR610m) in net profit p.a. and MYR0.53 to our DCF-based TP. Maintain estimates (pending clarity on Cukai Makmur), BUY call and MYR3.40 TP for now.
o *Haily (HAILY MK)*: Its wholly-owned subsidiary Haily Construction S/B was awarded a contract by Factor Synergy S/B to construct and complete a residential project in Kluang, Johor. The project, which is worth MYR23.7m, shall be completed within 18 months. This is the fourth project win since HAILY was listed on the ACE Market in Jul 2021, lifting total win to MYR99.4m. Stock is trading at 13.5x annualized 1H21 EPS.
o *Censof (CSHB MK)*: Its wholly-owned subsidiary Century Software (Malaysia) S/B was awarded a contract by Dewan Bandaraya Kuala Lumpur to provide renewal licenses system. The MYR3.4m contract, which commenced 1 Oct 2021, is for a duration of 2 years. This is CSHB’s first contract win for FY3/22. Stock is trading at a P/B of 2.2x.
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