MONEY MASTER

EcoWorld, IOI Corp, E&O, Sime Darby, Superlon, Ranhill, George Kent Some of these companies are likely to be in focus given the recent announcement, rumours and news surrounding them. Eco World Development Group Bhd The Group's third quarter net profit was almost 5x higher at RM44.58 million, compared with the RM9.39 million it recorded a year earlier. The group attributed the higher earnings for the quarter ended July 31 (3QFY16) to higher sales from launched projects during the quarter. Revenue rose almost 60% to RM727.34 million from RM454.28 million. For the first nine months of the FY16, net profit was about four times higher at RM99.93 million, compared with RM24.26 million it netted in the same period of FY15. Revenue rose 76% to RM1.81 billion from RM1.03 billion. IOI Corp Bhd Operations of IOI Corp Bhd at Rotterdam port have been blocked by greenpeace activists, accusing the group of forest destruction and child labour according to...

Retain outperform recommendation with unchanged target price (TP) of RM8.21 Telekom Malaysia's mobility brand, Webe going to wider audience on Sep 30 Telekom Malaysia’s (TM) mobility brand, Webe, initially released only to selected TM customers, is finally opening up to the wider audience on 30 Sept. Expansion of the broadband business and improved network quality supported better average revenue per user (ARPU). At the same time, TM’s capital expenditure which peaks in 2016 may pave the way for better dividend payouts in 2017. On the back of strong growth and yield prospects, MQ research retains its outperform recommendation on the telecommunication company. Event MQ Research reiterates their outperform recommendation on Telekom Malaysia following a non-deal roadshow with senior management in the US recently. It was very clear from the meetings that TM was concentrated on executing on its broadband business both in the wireline and wireless space. Increased coverage pr...

The FBM KLCI fell by 4.78 points or 0.3% as Budget day 2017 draws closer and speculators are looking at a possible early election in the country as well. The KLCI closed at 1,664.72 points as at closing. FBM KLCI fell by 4.78 pts as Budget day 2017 draws closer The market has been heading south throughout the day in general with the benchmark falling to as low as 1,661.58 before recovering towards the closing. There have been speculation that the upcoming budget 2017 in the country will be an election budget, creating anxieties and uncertainties on the initiatives that the government could implement. Analysts and fund managers are expecting the market to be fluctuating in the short and mid-term according to the report by theedgemarkets.com. Unlike Malaysia, Asian shares have shown slight recovery. Bursa Malaysia saw a rather low volume today with 1.49 billion shares traded, worth about RM1.85 billion. British American Tobacco (M) Bhd lead the gainers today while U...

The FBM KLCI fell 1.49 points or 0.1% despite the steel counters rally. The decline was in line with Asian stock markets that sank on Monday.  FBM KLCI down slightly As at 5pm today, the KLCI closed at 1,669.5 points. The decline was even worse at 1,665.41 before a slight rebound towards closing.  Across Bursa Malaysia, 1.64 billion shares valued at RM1.57 billion were traded. There were 324 gainers and 484 decliners. Reuters reported that the decline was likely after last week's gain as investors shifted their attention from central banks to the much anticipated US presidential debate.  Today, Japan's Nikkei 225 dipped 1.25% while Hong Kong's Hang Seng fell 1.56%. For Bursa Malaysia, the top gainer was Hong Leong Bank Bhd while the top decliner was DKSH Holdings (M) Bhd. The most active counter was Hiap Teck Ventures Bhd.

MSN Money News MSN Money News This will be something new for the blog categories. I'm a firm believer of ways to summarize input of information given the lack of time and resources. One of the ways to do that was through MSN Money, where I find some of the news of the day. Here are some of those that I've got and will share it with the readers on a more consistent basis. STOCK STUMBLE, ON PRESIDENTIAL DEBATE Stocks were lower Monday as Wall Street shifted its focus from interest rate policy to politics and traders braced for the first presidential debate between Hillary Clinton and Donald Trump. The Dow was down 140 points, the Standard & Poor's 500 was off by 0.7%, and the Nasdaq was down by 0.8%. "Tonight's debate starts the election's critical point for stock investors,"   Dan Clifton, a Washington policy analyst at Strategas Research Partners, told clients in a research note before the opening bell. " Few e...

Oil jumped by nearly 4% as OPEC meets; discuss ways to support prices Oil jumped nearly 4 percent on Monday as the world's largest producers gathered in Algeria to discuss ways to support prices, with nervous trade driving volatility to its highest since a similar meeting to freeze output in April in Doha which failed. The Organization of the Petroleum Exporting Countries and other exporters led by No. 1 producer Russia are meeting informally on the sidelines of the International Energy Forum in Algeria from Sept. 26-28 to discuss steps to tackle a price-eroding glut of crude. Key OPEC member Iran, the fourth largest crude exporter which is still trying to recapture output before Western sanctions in 2012, downplayed the chances of a deal while some OPEC members remained hopeful. Brent crude futures LCOc1 were up $1.75, or 3.8 percent, at $47.64 a barrel by 11:19 a.m. EDT (1519 GMT) U.S. West Texas Intermediate (WTI) crude futures CLc1 rose $1.65, or 3.7 perc...

Companies in Focus Companies in Focus SunCon, UEM Edgenta, CLIQ, KNM Some of these companies are likely to be in focus given the recent announcement, rumours and news surrounding them. UEM Edgenta Bhd Total asset solutions provider UEM Edgenta Bhd   is proposing to acquire Asia Integrated Facility Solutions Pte Ltd, which indirectly owns UEMS Pte Ltd, for S$185.9 million or RM563 million.  In a statement filed to Bursa Malaysia, UEM Edgenta said that together with its wholly-owned subsidiary, Edgenta (S) Pte Ltd, the group has entered into a sale and purchase agreement with Asia IFM Solutions Ltd for the acquisition. Sunway Construction Group Bhd Sunway Construction Group Bhd  has bagged three projects with a combined total value of RM209 million and bringing its outstanding order book to date to RM5 billion. The first contract involves its subsidiary Sunway Construction Sdn Bhd, which has been appointed by MMC Gamuda KVMRT (PDP SSP) Sdn Bhd t...

SELL CALL on UMWOG and and CEASE COVERAGE for Perisai Highlights Oil & Gas - hangover in the rig market? Malaysian rig count at all time low.   Rig count in Malaysia dropped to as low as 4 in 2016 compared to 6-10 rigs range seen in 2015, a dismal environment to be operated in for local rig players. The rig count seems to lag the oil price trend based on our observations possibly due to rig demobilization lag and decision making lag by the oil producers. Oil price volatility can’t be ignored.  Our study has shown that oil price volatility is in fact a better gauge for predicting rig count levels. The trend is evident in 2009-2011 periods whereby oil prices were rising but with volatility but rig counts were still stalling. Rig count only improved in 2011-2014 time period where oil prices stabilized above USD100/bbl levels. When is the recovery then?   Despite improvement in oil prices in 2H16 from low of USD30/bbl earlier this year, ...

Remain neutral with unchanged target price (TP) of RM0.88 NTPM Holdings Bhd NTPM’s 1QFY17 revenue came in at RM151.4m (+5.6% YoY, +4.7% QoQ), while net profit slipped to RM9.4m (-27.4% YoY, -6.6% QoQ). The higher revenue was driven by increase in sales of tissue products, meeting 21% of our revenue forecast for FY17F. The lower net profit which only met 13% of our FY17F net profit forecast awas attributed to higher losses incurred in the post commencement of Vietnam's initial tissue operations and thus margin deterioration was recorded owing to higher energy and labour costs. While Vietnam’s operations have hampered the Group’s performance this quarter, we do expect its contributions to be more visible in the medium term and to breakeven by FY18. We continue to maintain our Neutral view with a TP of RM0.88 pegged to a 14x PE multiple on FY17F EPS of 6.3sen. Paper products segment saw improvements in revenue by 8.9% YoY to RM105.4m (+4.6% QoQ). PBT however declined 20...

Maintain overweight on aviation sector Aviation industry Last week, it was reported that the Transport Minister has confirmed the upward revision for PSCs, which will be implemented for all airports in Malaysia starting 1st January 2017.  While rates are not firmed up yet, tentative new rates suggest all airports will have the same structure with International and Domestic PSCs at RM73 and RM11 in addition to a new segment known as ASEAN routes at RM35. We are positive on the tentative rates, as they indicate 10% higher PSC revenue for AIRPORT translating to a potential 25% upgrade to our FY17E earnings. While the magnitude of hike might appear huge for AIRASIA operating in KLIA2, we note that the effective impact would be minimal as most of AIRASIA’s international flights are flown towards ASEAN countries, which will fall under the new RM35 ASEAN segment – allowing them to keep their competitive pricings. We upgrade AIRPORT’s FY17E earnings by 25% on the back of a 1...

Upgrade to outperform call with an increased target price (TP) of RM2.24. Last week, the Federal Government issued provisional safeguard measures for steel coils and reinforced bars at a duty rate of 13.9% and 13.4% imposed respectively towards exporting countries into Malaysian shores. Positive on the measure as it would boost ANNJOO’s steel re-bars ASPs. Upgrade FY17E earnings by 20% on the back of 8% higher ASP assumption. Post earnings adjustment, upgrade ANNJOO to OUTPERFORM (from MP) with higher TP to RM2.24 (from RM1.69) after switching valuation methodology from 0.76x FY17 PBV to 7.0x FY17 PER. Ann Joo Resources Bhd Approval of provisional safeguard measures. Last week, the Federal Government issued provisional safeguard measures in relation to steel coils and reinforced bars after 4 months of investigations. The measure entails safeguard duties of 13.9% for steel coils and 13.4% for steel rebars which will be imposed towards a list of 40 exporting countries begin...

While central banks in Europe and Japan set to expand quantitative-easing (QE) policy, it appears that the "magic" that QE once has is no longer working. The idea that QE could be used to stimulate slowing economies could really just be a myth now. We have all seen how the US Federal Reserve has managed to persevere through the period of QE and Abenomics come after that...but the likelihood for us to see the QE magic work with both the central banks in Europe and Japan is low...things have changed. An article written by Mark Gilbert on Bloomberg: The Quantitative Easing Experiment is Failing  talks about the few areas that QE may have failed. Inflation hasn't been at the European Central Bank's (ECB) 2 percent target since the start of 2013; it's been half that or less for the past two years.  And here is what Mark said, "So I sympathize when ECB President Mario Draghi says he'll expand the use of non-conventional measures to avert th...