*Maybank IBG Kopi-O (19 Jan 2022)*
Nikkei 28257.3 -0.27%
Kospi 2864.2 -0.89%
SSE 3569.9 0.80%
HSI 24112.8 -0.43%
TWSE 18378.6 -0.79%
SET 1660.3 -0.99%
JCI 6614.1 -0.47%
STI 3280.1 -0.24%
KLCI 1542.9 -
*Maybank IBG Key Calls*
*Philippines Strategy: Keeping on course*
Despite opening the year with an Omicron-induced surge, we remain optimistic on the market’s prospects as the country’s wider vaccination coverage and manageable ICU bed occupancy rates should sustainably support the country’s more granular reopening policies, making our +19% YoY earnings growth forecast for FY22 achievable. Our YE22 PSEi target is unchanged at 8,200.
*MY*
o The selloff in Wall Street, the weakness in regional bourses as well as the wait for BNM’ MPC meeting on Thursday will continue to weigh on sentiment. O&G sector appears to be the only winner after oil price rallied overnight. Technically, we expect the KLCI to range between 1,525pts and 1,555pts today, with supports at 1,515pts and 1,475pts.
o *TIME dotCom (TDC MK)*: With space no longer a constraint going forward, we expect the data centre segment to become a long term revenue growth driver for TDC. Nevertheless, capex for re-purposing and new-build is not insignificant, and there is a gestation period (a few years). Maintain HOLD with an unchanged MYR4.60 TP (DCF-based). We prefer *TM (T MK, BUY, CP: MYR5.21, TP: MYR7.40)* among the Malaysia telcos.
o *GFM Services (GFM MK)*: Entered into a heads of agreement with Jua Juara S/B, which is a wholly-owned subsidiary of *Majuperak Holdings (MJPR MK)*, to jointly develop a land located at Muallim, Perak into a rest and service area to be connected to the PLUS North-South Highway. This is the second rest and service area project if materializes, and will help to replenish its order book which stood at MYR1.13b as at end-Sep 2021. Stock trades at 11.1x annualized 9M21 EPS.
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