*Maybank IBG Kopi-O (24 Jan 2022)*
Nikkei 27522.3 -0.90%
Kospi 2834.3 -0.99%
SSE 3522.6 -0.91%
HSI 24965.6 0.05%
TWSE 17899.3 -1.75%
SET 1652.7 -0.26%
JCI 6726.4 1.50%
STI 3294.9 0.00%
KLCI 1527.1 -0.05%
*Maybank IBG Key Calls*
*Thailand Property - Staying optimistic*
2021 combined presales rose 5% YoY despite a 23% decrease in new launches. Moving into 2022, we est. combined new launches to jump 97% YoY, driving presales/revenue/earnings growth to a double-digit rate. We est. 4Q21 earnings to recover 26% QoQ, driving full year growth to 3%. In our view, LH, QH and PSH should see strong 4Q21 earnings rebounds QoQ while SPALI is likely to see the strongest 2021 earnings growth at 38% YoY. LH is our top Buy with decent growth expected in all its business units.
*MY*
o The KLCI is set for a cautious start after Wall Street tumbled last Friday while the fall in crude oil prices will also weigh on sentiment. That said, downside could be capped amid bottom fishing ahead of CNY. Planters may also benefit from the strong CPO prices. Technically, we expect the benchmark index to range between 1,515 and 1,555 today, with supports at 1,515 and 1,500.
o *Plantations*: MPOB reported record export revenue of MYR106.5b in 2021. Here we highlight some key observations: (1) planted area declined for a second consecutive year; (2) CPO yield fell to levels not seen since 1998; (3) PPO imports flooded the MY market; and (4) there were negative trends in downstream utilization rates. The MY government is cognizant of these challenges and is reviewing the relevant policies to ensure MY’s PO exports continue to stay competitive. Preferred BUYs are KLK, SOP and BPLANT.
o *ES Ceramics Technology (ESC MK)*: 2QFY5/22 PATMI jumped 252% YoY, lifting 1HFY5/22 net profit to MYR23.6m (+227% YoY). The stronger 1HFY5/22 results were mainly attributable to a 115% YoY increase in revenue and margin expansion, which more than offset a higher effective tax rate. ESC’s 1HFY5/22 results benefitted from the expansion by glove makers, of which demand for gloves was partly supported by the fight against Covid-19 pandemic, though our analyst believes that the sector outlook is challenging. Stock trades at 5.8x annualized 1HFY5/22 EPS.
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