*Maybank IBG Kopi-O (11 Feb 2022)*
Nikkei 27696.1 0.42%
Kospi 2771.9 0.11%
SSE 3485.9 0.17%
HSI 24924.4 0.38%
TWSE 18338.1 1.03%
SET 1703.0 -0.01%
JCI 6823.6 -0.16%
STI 3428.0 0.23%
KLCI 1570.1 1.20%
*Maybank IBG Key Calls*
*Regional Plantations - Off to a good start in 2022*
MPOB’s Jan 2022 stockpile of 1.55mt (-4% MoM, +17% YoY) came in marginally below estimates surveyed by Bloomberg (1.58mt). Seasonal decline in Jan output has kept stockpile in tight supply. CPO ASP in Jan 2022 hit new high at MYR5,355/t, in part due to weaker-than-expected South America crop outlook. CPO ASP is likely to stay lofty in 1Q22 on tight supply of vegetable oils globally. Stay POSITIVE on the sector. Preferred BUYs are KLK, SOP and BPLANT.
*MY*
o Profit taking could accelerate after overnight Wall Street tanked. Renewed worries over tightening monetary policy will weigh on sentiment. Investors will also switch to a risk-off mode ahead of the weekend break. Technically, we expect the KLCI to range between 1,550pts and 1,580pts today, with supports at 1,530 and 1,509.
o *Berjaya Food (BFD MK)*: 2QFY22 results were above expectations mainly from higher-than-expected sales volume in BStarbucks and an earnings turnaround in KRR Msia. BFD’s outlook remains positive. However, we expect earnings to be lower HoH in 2HFY22 as average consumer spend normalises post-pandemic. Our FY22-FY24 earnings estimates are raised by 42%-76% upon imputing for current operating run rates. Rolling forward valuation to FY23E and on an updated -0.5SD mean PER of 14x (vs. 18x), our TP is raised to MYR3.30. Maintain BUY.
o *Censof (CSHB MK)*: Its wholly owned subsidiary Century Software (M) S/B was awarded a MYR7.3m contract by SME Corporation Malaysia to build an application system for the small and medium enterprises credit rating and accreditation platform (phase 1). The project is for a period of 45 months commencing from 15 Feb 2022 to 14 Nov 2025. This is the fourth contract award in FY3/22. The four projects amounted to just c.MYR29m in aggregate, about 33% of its FY3/21 revenue. Stock trades at a PB of 2.1x. On PER, the stock is trading at 21.7x annualized 9MFY3/22 EPS.
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