*Maybank IBG Kopi-O (25 Jan 2022)*
Nikkei 27588.4 0.24%
Kospi 2792.0 -1.49%
SSE 3524.1 0.04%
HSI 24656.5 -1.24%
TWSE 17989.0 0.50%
SET 1640.5 -0.74%
JCI 6655.2 -1.06%
STI 3283.4 -0.35%
KLCI 1521.9 -0.34%
*Maybank IBG Key Calls*
*Allianz Malaysia - Attractive dividend yield*
While flood claims are likely to feature in 4Q21, provision levels are likely to be manageable and we expect operations to have improved QoQ with the opening up of the economy and an end to the lockdowns. Encouragingly, we expect MFRS17 to have a positive impact on group earnings when it is adopted in 2023. We maintain our BUY call on Allianz with an unchanged SOP-derived TP of MYR16.75. Dividend yield is attractive at 4.8%.
*MY*
o After falling for six consecutive trading days, the KLCI could stage a rebound today. Nevertheless, trading will remain choppy amid concerns over Federal Reserve policy tightening and geopolitical tension. Technically, we expect the KLCI to range between 1,515 pts and 1,545pts today, with supports at 1,515pts and 1,475pts.
o *Haily (HAILY MK)*: Its wholly-owned subsidiary Haily Construction S/B was awarded a MYR41.3m contract to undertake construction works at Aurora Sentral, Iskandar Puteri, Johor. This is the first contract award of the year. HAILY’s core competency is in Johor, in particular Johor Bahru and Kulai districts. Stock trades at 19.5x annualized 9M21 EPS. It is sitting on a net cash of MYR36.4m at end-Sep 2021, which is around 45% of its market capitalization.
o *Opcom (OHB MK)*: Its subsidiary Opcom Cables S/B was awarded a MYR26.5m contract by *Telekom Malaysia (T MK, CP: MYR5.15, TP: MYR7.40, BUY)* to supply fiber optic cables from 23 Dec 2021 to 31 Dec 2023. With the latest award, the group has secured three contracts in FY3/22. Still, more contract win is needed as its unbilled contract value was only at c.MYR34m as at 21 Jul 2021. Stock trades at 23.4x annualized 1HFY3/22 EPS. It is sitting on a net cash of MYR60.3m at end-Sep 2021, equivalent to about 24% of its market capitalization.
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