*Maybank IBG Kopi-O (31 Jan 2022)*
Nikkei 26717.3 2.09%
Kospi 2663.3 1.87%
SSE 3361.4 -0.97%
HSI 23550.1 -1.08%
TWSE 17674.4 -
SET 1639.5 0.33%
JCI 6645.5 0.52%
STI 3246.3 -0.42%
KLCI 1520.0 0.27%
*Maybank IBG Key Calls*
*Sime Darby Plantation - US CBP issued Finding report before Impactt’s assessment*
Although the US is a negligible market to SDPL, it remains to be seen how SDPL’s key customers may react to the US CBP Finding. Even as the financial impact to SDPL has been muted thus far, MYR9.1b (-26%) in market cap has been wiped off since the WRO. While the market appears to have priced in the worst, we do not rule out possible negative knee-jerk reaction following this Finding. We maintain BUY and RNAV-TP of MYR4.47 on 0.45x RNAV peg.
*MY*
o The KLCI is set extend its upward trajectory after Wall Street rallied last Friday. O&G and plantation stocks will likely steal the center stage after commodity prices strengthened. That said, trading will remain choppy in this holiday-shortened week. Sentiment will also stay cautious amid concerns over the possibility of sharper interest rate rise in the US and slower economic growth in China. Technically, we expect the benchmark index to range between 1,510 and 1,540 today, with supports at 1,500 and 1,475.
o *Tenaga Nasional (TNB MK)*: The belated imposition of a tariff surcharge (from Feb 2022) is a welcome relief. The government will directly fund the delta for household users. The depletion of the Industry Fund means concerns over the ICPT mechanism will continue to linger in our view. Maintain HOLD with an unchanged MYR9.60 TP (DCF-based). We prefer *Mega First (MFCB MK, BUY, CP: MYR3.53, TP: MYR4.30)* in the utilities space.
o *Bursa Malaysia (BURSA MK)*: Results were in-line with FY21 net profit at 104%/102% of our/consensus forecasts. We raise FY22/23E net profit by 5%/2% post house-keeping and introduce FY24E. On slower equity ADV forecast and incorporating Cukai Makmur, we forecast FY22 net profit to fall 34% YoY. Our revised TP is MYR6.38 (+5%) based on unchanged 22x PER (10Y mean) on raised FY22E EPS. Catalysts are lacking with growth, policy risks and politics to impact sentiment and trading activities, in our view. Maintain HOLD.
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