*Maybank IBG Kopi-O (27 Jan 2022)*
Nikkei 27011.3 -0.44%
Kospi 2709.2 -0.41%
SSE 3455.7 0.66%
HSI 24289.9 0.19%
TWSE 17674.4 -0.15%
SET 1643.4 0.27%
JCI 6600.8 0.50%
STI 3271.6 0.73%
KLCI 1515.8 0.45%
*Maybank IBG Key Calls*
*Thailand Healthcare - U/G to POSITIVE following share price corrections*
We upgrade the Thai healthcare sector to Positive following the recent share price correction on signs of reducing Covid income. We think the sector’s share price corrections are overdone, and leave room for upside despite our TP cuts. CHG is our Top Pick, due to its good long-term fundamentals driven by both the social-security segment and hospital management. Upgrade BDMS to BUY while retaining its THB25.10 TP.
*MY*
o Despite yesterday’s rebound, the KLCI is set for a cautious start ahead of FOMC meeting and key economic data in the US. O&G and plantation stocks, however, could gain interest after commodity prices rallied. Technically, we expect the benchmark index to range between 1,505pts and 1,535pts today, with supports at 1,500pts and 1,475pts.
o *CTOS Digital Berhad (CTOS MK)*: We remain upbeat on CTOS’ prospects post-briefing. The introduction of multiple new digital products could help uplift customer wallet size. Additionally, the lifting of lockdown measures would mean CTOS could garner higher new activation growth in the underpenetrated SME segment, while the emergence of digital/challenger banks provides a new growth avenue in the unbanked/underbanked segment. Maintain BUY with an unchanged TP of RM2.30, pegged to 2.3x its PEG multiple.
o *AWC (AWCF MK)*: Its subsidiary Trackwork & Supplies S/B has secured a MYR7.1m contract from Keretapi Tanah Melayu Bhd to upgrade and replace new cushion pad passenger seat. This contract award will help to replenish its order book which stood at c.MYR800m at end-Sep 2021. Stock trades at 6.1x consensus FY6/22 EPS. It is sitting on a net cash of MYR97.8m at end-Sep 2021, equivalent to about 59% of its market capitalization.
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