*Maybank IBG Kopi-O (14 Jan 2022)*
Nikkei 28489.1 -0.96%
Kospi 2962.1 -0.35%
SSE 3555.3 -1.17%
HSI 24429.8 0.11%
TWSE 18436.9 0.33%
SET 1680.0 0.09%
JCI 6658.4 0.17%
STI 3257.3 0.07%
KLCI 1569.5 0.40%
*Maybank IBG Key Calls*
*DMCI Holdings - Engineering a comeback*
We initiate coverage on DMC with a BUY and discounted NAV TP of PHP10. Coming off FY21E’s PHP16.4b net income, we forecast FY22/23E EPS to drop 11%/18% YoY on softer coal prices and exports for SCC and lower real estate sales due to softened takeup amid Covid-19 crisis for DMCI Homes, although cushioned by construction revenues from DMCI’s infrastructure and utilities-heavy orderbook. DMC’s RNAV discount of 41% and PBV of 1.2x still seems attractive to us, as is the 8.8% FY22E dividend yield.
*MY*
o Expect selling pressure to intensify after Wall Street slipped overnight. Local tech stocks may mirror the selloff in US tech companies while O&G counters may also take a breather. On the flip side, planters may benefit from rotational play after CPO price rallied. Technically, we expect the KLCI to range between 1,550pts and 1,580pts today, with supports at 1,515pts and 1,475pts.
o *Westports Holdings (WPRTS MK)*: 4Q21 throughput volumes will likely be affected by the recent tropical storm as WPRTS saw workforce capacity reduced to 30% in its aftermath. As its share price has declined by c.10% since the CM announcement and with the finalisation of the “W2” concession on the horizon, we now deem the risk-reward ratio to be balanced. We upgrade WPRTS to a HOLD with a lower DCF-based TP (WACC: 7.5%, LTG: 2%) of MYR3.92 (-4%) on the back of a 3.5%/2% cut in our throughput volume growth estimates for FY21/22E.
o *Asia Poly (ASPO MK)*: Its wholly-owned subsidiary Asia Poly Industrial S/B had entered into a share sale agreement to acquire the entire stake in Keng Imports & Exports S/B for MYR24m, to be financed via internally generated funds and bank borrowings. Keng holds ownership of an industrial land at Kapar, Klang Selangor measuring 18,364 sqm. This will enable ASPO to expand its production capacity up to 3,200MT per month to meet the growing demand from overseas customers. Stock trades at a PB of 1.0x. Warrants are at-the-money.
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