*MKE Kopi-O will be posting our final Kopi of the year on 17 Dec 2021. We will resume publication on 3 Jan 2022. Wishing everyone Happy Holidays, a Merry Christmas and a Happy New Year!*
*Maybank Kim Eng Kopi-O (13 Dec 2021)*
Nikkei 28437.8 -1.00%
Kospi 3010.2 -0.64%
SSE 3666.3 -0.18%
HSI 23995.7 -1.07%
TWSE 17826.3 -0.49%
SET 1618.2 -
JCI 6652.9 0.14%
STI 3135.6 -0.22%
KLCI 1488.9 -0.86%
*MKE Key Calls*
*Singapore: Feng Shui Guide to Prosperity in 2022*
In what has been a long & volatile 2021, our research team is looking up from their spreadsheets to decipher what Feng Shui has in store for 2022. More volatility seems a certainty, but also opportunities. Singapore would benefit from strong elemental Wood energy, while healthcare, logistics, education, financials are set to be vibrant. Wherever your investing journey takes you, Maybank Research wishes you an abundance of prosperity, health, and happiness In the Year of the Water Tiger!
https://bit.ly/3dKk5qp
*MY*
o The KLCI is expected to start the week in a cautious mode after regional markets ended broadly lower last Friday. Stocks are expected to remain volatile in the coming days, as investors focus on the upcoming FOMC meeting later this week, which is expected to speed up stimulus withdrawal. Technically, we expect the benchmark index to range between 1,470 and 1,510 today, with supports at 1,484 and 1,450.
o *Plantations*: MPOB’s Nov 2021 stockpile was marginally lower MoM at 1.82mt (-1% MoM, +16% YoY). Although it is slightly higher than street estimates of 1.78mt, the stockpile is tight by historical standards. As the industry enters into low productivity months, CPO price will stay relatively lofty till 1Q22. High fertilizer prices and disrupted fertilizer supplies may force growers to cut back on fertilizer use globally, potentially impacting yields in 2022. Preferred BUYs are KLK, SOP and BPLANT.
o *Top Glove (TOPG MK)*: TOPG’s 1QFY22 net profit of MYR186m was below our and consensus full-year estimates. Management expects ASP to continue falling but at a slower pace. It remains cautious and will defer some of the expansion plans. We lower our FY22/23/24 EPS forecasts by -27%/-5%/-4%. We now value TOPG at MYR1.61 on an unchanged 12.7x CY23 PER. SELL.
o *Chin Hin Group Property (CHGP MK)*:Its 65%-owned subsidiary Kayangan Kemas S/B has proposed to acquire a 60% stake in Makna Setia for MYR9m cash, to be funded via internally generated funds. The proposed acquisition comes with a guaranteed profit after tax of not less than MYR11m for FY6/21-22. At an average guaranteed PAT of MYR5.5m p.a., CHGP is effectively valuing Makna at a P/E of 2.7x. Makna would help to cement CHGP’s exposure in the construction business. Share price has risen by 67% YTD.
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