*Maybank IBG Kopi-O (12 Jan 2022)*
Nikkei 28222.5 -0.90%
Kospi 2927.4 0.02%
SSE 3567.4 -0.73%
HSI 23739.1 -0.03%
TWSE 18288.2 0.27%
SET 1667.1 0.61%
JCI 6648.0 -0.64%
STI 3246.4 0.60%
KLCI 1564.3 0.91%
*Maybank IBG Key Calls*
*Singapore Market: Endemic playbook*
We think Singapore is in a sweet spot in a COVID-endemic 2022 as its ‘old world’, value oriented sectors benefit from rising rates and a clear path to economic re-opening. At the same time, structural and policy shifts is renewing the economy towards sustainability and new economy sectors through restructuring. We think banks, consumer, industrials, transport and technology sectors could see the strongest benefit. Our preferred picks: BAL, CD, CICT, DBS, FRKN, OCBC, ST, THBEV, UOB, WIL.
*MY*
o Expect KLCI to extend its gains after Wall Street ended higher overnight. O&G stocks will likely take center stage after oil price rallied. That said, trading will remain choppy due to headwinds such as tightening monetary policy and the omicron variant. Technically, we expect the benchmark index to range between 1,545 and 1,581 today, with supports at 1,545 and 1,515.
o *CTOS Digital Berhad (CTOS MK)*: We attended an investor briefing, with the management highlighting its 3-year plan and diving deeper into the rationale for the recent JurisTech acquisition. Our positive view on the company remains intact, as the acquisition greatly enhances CTOS’ end-to-end credit lending solution and solidifies its leading position in the credit bureau industry. The acquisition is also timely as digital economy adoption accelerates in the ASEAN region. Maintain BUY with an unchanged MYR2.40 TP.
o *Willowglen (WLW MK)*: Its wholly-owned subsidiary Willowglen (Malaysia) S/B was awarded a contract worth approximately MYR7.8m by Prasarana Malaysia to design, install, integrate and commission existing SCADA and CCTV System. This is the second contract award in Jan 2022. YTD, the group has secured about MYR17.1m worth of projects. Demand for SCADA is driven by wireless communication technology, cloud computing and IoT. Stock trades at 18x annualised 9M21 EPS. It is sitting on a net cash of MYR64.5m at end-Sep 2021.
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