*Maybank IBG Kopi-O (22 Feb 2022)*
Nikkei 26910.9 -0.78%
Kospi 2743.8 -0.03%
SSE 3490.6 0.00%
HSI 24170.1 -0.65%
TWSE 18221.5 -0.06%
SET 1694.3 -1.10%
JCI 6903.0 0.15%
STI 3436.4 0.22%
KLCI 1582.7 -1.27%
*Maybank IBG Key Calls*
*Raffles Medical Group - Growth set to normalise post-pandemic*
FY21 PATMI of SGD84.2m (+27.7% YoY) was ahead of MIBG and consensus estimates by 9%/11%. While 2H21 net profit fell 8.1% YoY to SGD44.7m on lower other operating income (-56.2% YoY), arising from less government grants such as JSS payout and property tax rebate, this was largely expected, in our view. We cut our FY22-24E EPS by 8-12% due to lower contributions from Covid-19-related services and its China hospitals. This reduces our DCF-based TP to SGD1.50 but keep BUY with 16% upside potential.
*MY*
o After yesterday’s selloff, a dead cat bounce may take place, and this will add onto the volatility of the market, in particular the plantation sector. Sentiment will also be haunted by renewed concerns over geopolitical tensions. Technically, we expect the KLCI to range between 1,560pts and 1,600pts today, with supports at 1,570 and 1,530.
o *CIMB Group Holdings (CIMB MK)*: Niaga’s FY21 net profit was within expectations but we upgrade FY22-24E net earnings by 8-14% on the back of lower credit cost assumptions. This translates to a potential 2-4% uplift to CIMB Group’s earnings. We maintain our group forecasts for now pending the release of CIMB Group’s results on 28th Feb, as well as our HOLD call and TP of MYR5.40, pegging on a FY22 PBV of 0.9x (ROE: 8.5%).
o *MI Technovation (MI MK)*: Reported a net profit of MYR13.2m in 4Q21 (+0.2% YoY; -30.2% QoQ), lifting FY21 PATMI to MYR61.8m (+14.5%). Excluding one-offs (mainly forex effects), its FY21 core net profit rose 6.0%. The stronger FY21 results stemmed mainly from a 64% YoY increase in revenue, which more than offset margins compression and a higher effective tax rate of 5.5% (FY20: 3.6%). MI also declared a second interim dividend of 2.0sen/sh. Management is relatively upbeat on its prospects due to opportunities arising from the structural increase in long-term semiconductor demand, which was underpinned by the industry mega trend of 5G, AI, IoT, EV, and smart city related applications. MI is also actively engaging in merger and acquisition activities. Stock trades at 19.1x consensus FY22E EPS.
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