MONEY MASTER

Maintain Buy with unchanged Target Price of RM8.30 Top Glove Nothing to be excited about We are neutral on Top Glove’s proposed secondary listing on the SGX as it is unlikely to boost liquidity nor valuation. Separately, we expect 2QFY8/16 profits to be sequentially weaker but still within ours and street’s forecasts. Top Glove presently trades at mean valuation, at 16x 2017 PER. Maintain earnings forecasts and TP of MYR8.30, based on 25x 2017 PER, pending results release. Proposes secondary listing on SGX Top Glove has proposed to undertake a secondary listing for its existing entire issued and paid-up share capital on the Main Board of the Singapore Exchange (SGX). Moreover, Top Glove intends to explore with its substantial shareholder(s) the possibility of selling a portion of their shareholdings in Top Glove of c.SGD20m (MYR59m) in the open market of SGX. The listing is expected to be completed by 3Q16. Neutral on the secondary listing We are neutral on the pro...

Maintain Buy call with unchanged Target Price (TP) of RM4.30 Inari Amertron Bhd Positive reinforcement to Inari’s new plant, P-21 We are positively surprised by the MYR100m matching grant awarded by MIDA; a testament to Inari’s capabilities. Look beyond temporary earnings weakness in 3QFY16 as Inari continues to offer long-term growth prospects. Our forecasts and MYR4.30 TP (17x CY17 EPS) are unchanged for now; reiterate Inari as the Top Pick of the sector for its improved earnings visibility and strong growth prospects. The biggest grant awarded by far Following the acquisition of the P-21 plant for the setting up of Inari Integrated Systems (IIS), a wholly-owned subsidiary of Inari, the Malaysian Investment Development Authority (MIDA) has granted MYR100m matching grant to Inari to upgrade its P-21 plant and for the purchase of equipment and machineries. This is to power Inari’s next growth engine in the areas of advanced communication chips and die preparation. ...

Maintain Buy call with  lower Target Price (TP) of RM0.90 (+29%) Eversendai Corp Strong job win momentum to continue Following strong job wins in 2015, the momentum would continue in 2016 especially from Middle East and Malaysia. Variation order claim is expected to pick up in 2016, providing upside to our earnings forecasts. The pick up in job flows from key global events in the Middle East would re-rate the stock. Post earnings forecasts adjustments, we maintain BUY on Eversendai with a lower MYR0.90 TP (-10%) based on 12x 2017 PER. Potential job wins from ME and Malaysia Eversendai’s 2015 record high job wins of MYR1.73b was mainly from Middle East (64% of total) and 65% consisted of structural steel works. In 2016, Eversendai would continue tendering actively in Middle East and Malaysia but would tender selectively in India. The major events including World Expo 2020 in Dubai and World Cup 2022 in Qatar would continue to drive construction jobs in the M...