*Maybank IBG Kopi-O (5 Jan 2022)*
Nikkei 29301.8 1.77%
Kospi 2989.2 0.02%
SSE 3632.3 -0.20%
HSI 23289.8 0.06%
TWSE 18526.4 1.40%
SET 1670.3 0.76%
JCI 6695.4 0.45%
STI 3181.1 1.50%
KLCI 1541.9 -0.46%
*Maybank IBG Key Calls*
*Bermaz Auto Berhad - Exciting days ahead*
We remain positive of BAuto. Whilst its 3 franchises (Mazda, Kia & Peugeot) are delivering to expectation, the Kia brand offers the biggest spark and excites us most over the next 24 months; for its brand revitalization, exhilarating products pipelines and ASEAN exports aspiration. Overall, BAuto offers strong earnings growth, a solid balance sheet, net cash, decent dividend yields, management acumen and undemanding valuations. Our TP is pegged to 15x FY22-23 (mean).
*MY*
o After falling for two consecutive days, the KLCI could stage a rebound today. O&G and plantation stocks will likely take center stage after commodity prices extended their rally. That said, external headwinds and rising Omicron cases worldwide could weigh on sentiment. Technically, we expect the benchmark index to range between 1,520 and 1,560 today, with supports at 1,515 and 1,475.
o *Aneka Jaringan (ANEKA MK)*: Its wholly-owned subsidiary Aneka Jaringan S/B was awarded a MYR16.1m contract by Sterling Paradise S/B to undertake foundation works for an apartment project at Taman Mutiara Bukit Jalil, Kuala Lumpur. With the latest award, ANEKA has secured MYR30.3m worth of jobs in FY8/22, equivalent to about 24% of FY8/21 revenue. However, one should keep an eye on the upcoming quarterly results after the group slipped into the red in FY8/21. Stock trades at a P/B of 1x.
o *Ranhill Utilities (RAHH MK)*: Secured two contracts worth a total of MYR161.3m relating to efforts to reduce non-revenue water (NRW) in Pahang and Johor. The contracts were awarded to the group's wholly owned unit Ranhill Water Services. In Johor, the two-year contract for NRW reduction worth MYR156.8m was awarded by a related party, Ranhill's 80%-owned unit Ranhill SAJ S/B. As for the contract in Pahang, it is worth MYR4.5m. Stock trades at 13.6x consensus FY22 EPS.
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