MONEY MASTER

Highlights Loan growth is guided at 6-8% in FY16 (vs 6.8% achieved in FY15), underpinned by the consumer segment (in particularly, hire purchase and mortgage financing). NIM to remain under pressure. Following a 13bps decline in NIM in FY15, management expects NIM to remain under pressure in FY16 as competition for deposits remains intense for the first 2 months of FY16 (and it sees possibility of deposit competition intensifying further in the coming months). While management has plans to expand its CASA base (from 19.2% FY15) through various initiatives, we believe such plans may be challenging to yield favourable result amidst the current tight liquidity environment. Asset quality to improve from FY16. The AQ deterioration in FY15 (evidenced by higher GIL ratio and credit cost) came largely from the SME segment and contract financing. While operating environment will likely remain challenging, management expects its asset quality to improve (with cre...

http://money-made-ez.blogspot.my/2016/01/stock-pick-uchi-technologies-bhd.html Maintain Neutral, Inari and Scicom remain top pick Sector earnings momentum remains positive both on a yoy and qoq basis. Earnings growth, however, continues to be underpinned by a weaker currency rather than operational factors. Concerns over an inventory imbalance and the possible strengthening of the RM are also valid. We maintain our Neutral stance and are selectively positive on  stocks  that can offer real growth. For sector exposure we like Inari and Scicom. 2015 broadly in line with expectations Calendarised 2015 core earnings for the technology sector jumped 54% yoy underpinned by both revenue growth and margin expansion. The strong earnings growth was nevertheless aided by the average 19%  depreciation  of the RM vis-à-vis the US$ during the year. Intuitively, judging by the revenue growth of 15% yoy in RM terms, impact from organic growth was largely muted. Thi...

AFFIN HWANG: Buy on weakness; INARI - country's top pick for 2016 Inari’s share-price correction fully reflects a weak 3QFY16E, in our view. However, earnings should recover in 4QFY16E in tandem with a new product launch and, as such, we leave our EPS forecasts intact. Meanwhile, 2QFY16 earnings, due on 23 February, are likely to come within our expectations. Reaffirm BUY. A country top pick for 2016.  2QFY16 results scheduled for 23 February; we expect no surprises  Inari is scheduled to release its 2QFY16 results on the evening of 23 February. Negative surprises are unlikely despite the seasonally weaker quarter and also the slowdown in demand by a major smartphone manufacturer from December 2015. We anticipate a flattish set of earnings in 2QFY16E (1QFY16 core profit of RM42m). Meanwhile, any positive surprises will likely arise from the favourable strengthening of the US$ vis-à-vis the RM. We note that during the final quarter of 2015, the RM had depreciated some 5%...