*Maybank IBG Kopi-O (23 Feb 2022)*
Nikkei 26449.6 -1.71%
Kospi 2706.8 -1.35%
SSE 3457.1 -0.96%
HSI 23520.0 -2.69%
TWSE 17969.3 -1.38%
SET 1691.1 -0.19%
JCI 6862.0 -0.59%
STI 3400.6 -1.04%
KLCI 1577.0 -0.36%
*Maybank IBG Key Calls*
*Thailand Healthcare - Covid alert hits Level 4*
Covid in Thailand is rebounding and there’s risk restrictions could be imposed again. Under this scenario, the earnings outlook and sentiment could improve for BCH and CHG. Our Top Picks are CHG and MEGA due to higher income from Covid treatments and vitamin sales.
*MY*
o With external headwinds taking centre stage coupled with the selloff in overnight Wall Street, we expect trading to be choppy in the near term as investors may become more risk averse. Technically, we expect the benchmark index to range between 1,560pts and 1,600pts today, with supports at 1,570 and 1,530.
o *Wah Seong (WSC MK)*: We are positively surprised by this big EACOP contract win. It elevates WSC’s order backlog by 65%, improves visibility over 3 years and will be a key feature to earnings (with Qatar ops). WSC is entrenched to ride the upcycle energy play. Valuations are undemanding, should WSC deliver to its expectation. Our TP of MYR1.20 is based on 10x FY22 PER (unchanged). Maintain BUY.
o *Kerjaya Prospek Group (KPG MK)*: Its wholly-owned subsidiary, Kerjaya Prospek (M) S/B, was awarded a MYR710.1m contract to undertake main building and external works for a proposed residential development project at Gombak, Selangor. With the latest contract award, KPG’s total outstanding order book is lifted to approximately MYR4.1b, equivalent to about 5x its FY20 revenue. Stock trades at 9.8x consensus FY22E EPS.
o *NCT Alliance (GFLO MK)*: Reported a 256% YoY rise in 4Q21 PATMI. This lifted FY21 net profit to MYR34.6m (+514% YoY). The stronger FY21 results were mainly attributable to higher property earnings, margin expansion and a lower effective tax rate. No dividend was declared for the current quarter. In FY21, property revenue surged 174% YoY mainly contributed by: 1) stronger take-up rate of the Grand Ion Majestic and its progress revenue recognition; and 2) rental received from its Grand Ion Delemen commercial units. Stock trades at 13.3x trailing 12-month EPS.
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