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Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change
without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from
the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD (14948-M)
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Daily Note Daily Market Commentary
(A Participating Organisation of Bursa Malaysia Securities Bhd)
Friday, 13 January 2017 Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur
Tel : 603 - 2072 1277. Fax : 603 - 2032 5048
TA Research
e-mail : taresearch@ta.com.my
For Internal Circulation Only
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
Daily Brief
Market View, News In Brief: Corporate, Economy, and Share Buybacks
Blue chips ended higher Thursday led by strong gains on BAT (+RM1.92) and Petronas Gas
(+24sen), but profit-taking forced the KLCI to settle off best. The index added 2.55 points to
close at 1,677.76, off an early low of 1,673.44 and high of 1,682.74, as gainers led losers 539
to 298 on strong turnover totaling 2.5bn shares worth RM2.19bn.
The Dow Jones Industrial Average fell 63.28 points, or 0.32 percent, to close at 19,891, the
S&P 500 dropped 4.88 points, or 0.21 percent, to 2,270.44 and the Nasdaq Composite dipped
16.16 points, or 0.29 percent, to 5,547.49.
Page 2 of 8
TA Securities
A Member of the TA Group 13-Jan-17
News In Brief
Corporate
Malayan Banking Bhd (Maybank) is planning to dispose its entire 68.55% stake in WOM
Finance to PT Reliance Capital Management for an indicative price of IDR673.77bn
(approximately RM229.08mn) cash consideration. The proposed disposal is undertaken as
part of Maybank Indonesias strategic initiative to maximise its capital use and streamline
its customer segmentation which will optimise its resources in the most efficient manner.
(Bursa Malaysia)
Perisai Petroleum Teknologi Bhd and its wholly-owned subsidiary Perisai Capital (L) Inc
have been granted a restraining order against all proceedings and actions brought against
the two companies as part of its regularisation plan. It said the High Court of Malaya
(Commercial Division) at Kuala Lumpur had granted orders pursuant to Sections 176(1)
and 176(10) of the Companies Act 1965. (Bursa Malaysia)
Atlan Holdings Bhd's subsidiary Duty Free International Ltd has announced a bonus
warrants issue of up to 477.74mn warrants on the basis of two warrants for every five
existing shares. Each bonus warrant will entitle the warrant holder to subscribe for one
new share in the company at an exercise price of SGD0.43(RM1.35) each, which is at a
premium of 7.5% to the last transacted price of SGD0.40. (Bursa Malaysia)
Thriven Global Bhd has teamed up with the Perak State Secretary Inc (SSI) to build
affordable houses on 11 pieces of freehold land measuring 43.297 acres in Behrang Ulu,
Muallim, Perak. Thriven has entered into a joint venture agreement with SSI for the
proposed development. New Catalysts Resources (M) Sdn Bhd owns the remaining 15%
shares of Thriven NCR. Under the JV agreement, SSI is entitled to RM6.49mn plus 25% of
pre-tax profit for the proposed project, while Thriven NCR will be entitled to the remaining
75%. (Bursa Malaysia)
Ho Hup Construction Company Bhd, via its unincorporated joint venture (JV) DSE-HH JV,
has been awarded a 36-month contract worth RM221.4mn for rehabilitation works along
Sungai Besut, Terengganu. Ho Hup said it owns an 80.7% stake in DSE-HH JV while the
remainder is held by DSE Construction Sdn Bhd. DSE-HH JV will construct a breakwater,
revetment, silt curtain, beach nourishment; install settlement plates and all associated
works in relation to the rehabilitation works along Sungai Besut.
EKA Noodles Bhds wholly-owned subsidiaries Kilang Bihun Bersatu Sdn Bhd (KBBSB)
and EKA Foodstuff Sdn Bhd, will shut down their manufacturing plants and cease
operations from Jan 18. The proposed cessation will also involve the disposal of KBBSBs
assets, from which the proceeds from the exercise will be used to settle the companys
liabilities. (Bursa Malaysia)
Sarawak Cable Bhd has decided to pull the plug on its proposed private placement of up to
10% of its issued and paid-up share capital to raise about RM53.9mn due to market
conditions and its share price. (Bursa Malaysia)
Berjaya Food Bhd (BFB) has appointed Sydney Lawrence Quays as its executive director
while Datuk Zurainah Binti Musa has resigned from her position as non-independent, non-
executive director of the company. Quays is currently also a director of Berjaya Food
Page 3 of 8
TA Securities
A Member of the TA Group 13-Jan-17
Trading Sdn Bhd, a wholly-owned subsidiary of BFB, and is responsible for the growth of
BFood Trading, which operates the fast-moving consumer goods business. (Bursa Malaysia)
Yen Global Bhd, in which Green Packet Bhd has bought a 22% stake last year, proposed to
change its name to G3 Global Bhd. The name G3 Global Bhd has been approved and
reserved by the Companies Commission of Malaysia for the company. (Bursa Malaysia)
Page 4 of 8
TA Securities
A Member of the TA Group 13-Jan-17
News In Brief
Economy
Asia MoF Rules Out any Possibility of Budget Recalibration
The Ministry of Finance (MoF) has ruled out the possibility of a budget recalibration despite
the weaker ringgit/US dollar environment. Second Finance Minister Datuk Johari Abdul
Ghani said there was no need for a budget recalibration as the Malaysian economy would
adjust accordingly to overcome adversities, including the weak ringgit. Johari said one of
the factors that contributed to the weakening ringgit was the anticipation of US President-
elect Donald Trump implementing an inward driven economic policy which would lead to
interest rate hike in the world's largest economy. Johari also dismissed any speculation of
the government reintroducing capital control as it was not in sync with the country's open
economic policy. "We are not going to do any pegging and we will not control our capital
flows. (The Star Online)
Separately, measure of peoples' assessment of the Japanese economy held steady at the end
of the year. The current index of Economy Watchers' survey came in at 51.4 in December,
the same reading as in the previous month. In October, the score was 48.4. Any reading
above 50 indicates optimism and a reading below 50 suggests pessimism. At the same time,
the outlook index dropped to 50.9 in December from 51.3 in November. (RTT News)
Page 5 of 8
TA Securities
A Member of the TA Group 13-Jan-17
Journal)
U.S. Budget Deficit Widening Again Amid Talk of Possible Tax Cuts
The federal budget deficit is widening again after years of post-recession shrinkage, with its
trajectory in the coming years uncertain as President-elect Donald Trump and
congressional Republicans look to cut taxes and boost U.S. economic growth. The U.S. ended
the 2016 calendar year with a $580 billion deficit, according to Treasury Department data
released Thursday, representing roughly 3.1% of U.S. gross domestic product. That was up
from a deficit of around 2.6% of GDP at the end of the 2015 calendar year, and it ended a
six-year streak of annual declines. The nonpartisan Congressional Budget Office last year
predicted rising budget deficits over the next decade as outlays grow faster than tax
receipts and other revenue. The CBO foresees the deficit climbing from 3.1% of GDP in the
current fiscal year, which began October 1, to 4.6% of GDP by the 2026 fiscal year. But that
projection assumes no major changes to current law and continued modest economic
growth. The coming Trump administration has signalled that overhauling the tax code will
be a priority along with boosting infrastructure investment, though it remains to be seen
how that could affect economic growth, government revenues and the budget deficit. (The
Wall Street Journal)
Inflation in Europes largest economy has risen to its highest level in almost 3 years,
largely as a result of higher oil prices. The Bundesbank forecast in December that inflation,
measured according to European Union harmonized standards, would rise to about 1.4% in
2017 from 0.3% in 2016. That is a concern for Germanys households, who are sitting on
around 2 trillion euros ($2.1 trillion) of deposits. The populist Alternative for Germany
party is trying to cash in on the mood swing, as it seeks to win its first seats in the national
parliament. Government spending rose 4.2% in 2016 from 2015, according to Destatis.
Household consumption increased 2.0%, while construction investment rose 3.1%. A 2.5%
rise in exports, meanwhile, was outstripped by a 3.4% increase in imports. Investment in
plant and machinery was lacklustre, up 1.7% from the 2015. Economists warned that rising
inflation, if left unchecked, would soon start eroding households incomes and savings, as
the European Central Bank isn't expected to raise interest rates in the near-term. The ECB
sets rates across the Eurozone, of which Germany is a member. The government must
urgently address the problems caused by low rates to woo back voters from the AfD party,
said the Christian Democrats Mr. Linnemann. (The Wall Street Journal)
Page 7 of 8
TA Securities
A Member of the TA Group 13-Jan-17
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions
are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no
liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in
the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD (14948-M)
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Page 8 of 8
For Internal Circulation Only
SNAPSHOT OF STOCKS UNDER COVERAGE
Company Share Price Target Price EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg
BETA
(RM) (RM) FY17 FY18 FY17 FY18 FY17 FY18 High Price % Chg Low Price % Chg YTD
12-Jan-17
AUTOMOBILE
BAUTO 2.05 2.18 0.98 13.2 17.1 15.5 12.0 6.5 8.3 2.44 -16.0 1.79 14.6 -3.8
MBMR 2.10 2.20 0.69 24.5 25.3 8.6 8.3 2.9 2.9 2.70 -22.2 1.94 8.2 -1.9
UMW 4.62 4.05 1.11 12.4 18.9 37.2 24.5 1.7 2.6 7.45 -38.0 4.43 4.3 1.1
CONSTRUCTION
BPURI 0.43 0.44 0.86 6.2 5.6 6.9 7.7 0.0 4.7 0.51 -15.7 0.36 19.4 -1.1
GADANG 1.04 1.37 0.67 12.9 13.6 8.1 7.6 2.7 2.7 1.35 -23.1 0.75 39.0 -1.0
GAMUDA 4.94 5.62 1.00 33.0 36.7 15.0 13.4 2.4 2.4 5.00 -1.2 4.35 13.6 3.3
IJM 3.38 3.23 1.04 16.9 20.7 20.0 16.3 2.8 2.8 3.61 -6.3 3.07 10.1 5.6
SENDAI 0.62 0.60 1.07 9.9 9.3 6.2 6.6 1.6 1.6 0.77 -20.1 0.41 51.9 7.0
SUNCON 1.69 1.85 na 12.3 12.4 13.7 13.6 3.3 3.3 1.74 -2.9 1.32 28.0 -0.6
WCT 1.88 1.54 0.95 13.1 12.4 14.4 15.1 1.6 1.6 1.98 -5.1 1.41 33.3 8.7
LITRAK 5.80 5.58 0.16 47.7 48.1 12.2 12.1 4.3 4.3 6.06 -4.3 4.90 18.4 -1.4
Building Materials
WTHORSE 2.01 2.07 0.53 20.7 21.3 9.7 9.4 5.0 5.0 2.40 -16.3 1.93 4.1 0.0
CONSUMER
Brewery
CARLSBG 14.14 15.52 0.59 76.9 83.6 18.4 16.9 5.4 5.9 15.20 -7.0 11.46 23.4 1.6
HEIM 16.40 19.73 0.56 90.1 95.0 18.2 17.3 4.9 5.2 18.74 -12.5 12.63 29.8 0.1
Retail
AEON 2.53 2.23 0.53 6.5 7.5 38.9 33.5 0.8 0.9 3.00 -15.7 2.47 2.4 -1.6
AMWAY 7.50 8.00 0.40 35.3 38.3 21.3 19.6 3.7 4.0 9.70 -22.7 7.40 1.4 1.1
F&N 23.32 21.71 0.37 98.5 115.9 23.7 20.1 2.5 3.0 27.00 -13.6 18.10 28.8 -0.7
NESTLE 75.82 88.16 0.40 343.1 358.4 22.1 21.2 4.1 4.3 81.80 -7.3 72.80 4.1 -3.0
PADINI 2.50 4.00 0.53 23.5 26.5 10.6 9.4 6.0 7.2 3.08 -18.8 1.81 38.2 -2.0
POHUAT 1.86 2.08 0.66 22.9 22.9 8.1 8.1 4.3 4.3 1.99 -6.5 1.41 31.9 7.5
QL 4.39 4.71 0.55 19.0 21.1 23.1 20.8 1.2 1.3 4.65 -5.6 4.17 5.3 0.7
SIGN 0.82 1.26 0.59 12.2 13.6 6.7 6.0 6.1 6.1 1.07 -23.2 0.72 13.8 3.1
Tobacco
BAT 48.50 56.00 0.97 278.0 288.8 17.4 16.8 5.6 5.8 58.40 -17.0 40.70 19.2 8.7
GAMING
Casino
GENTING 8.37 9.25 1.36 44.1 50.8 19.0 16.5 0.6 0.7 9.90 -15.5 7.02 19.2 4.6
GENM 4.82 5.66 1.18 26.9 29.2 17.9 16.5 1.7 1.9 4.97 -3.0 4.05 19.0 5.2
NFO
BJTOTO 2.95 4.01 0.75 24.6 24.8 12.0 11.9 6.4 7.3 3.47 -15.0 2.86 3.1 -0.3
LUSTER 0.07 0.10 0.98 0.2 0.3 35.5 23.2 0.0 0.0 0.09 -17.6 0.05 40.0 40.0
HEALTHCARE
Hospitals
IHH 6.35 6.50 0.87 14.4 18.3 44.0 34.7 0.6 0.7 6.79 -6.5 6.15 3.3 0.0
KPJ 4.15 4.70 0.55 14.3 17.3 29.0 24.1 1.4 1.7 4.39 -5.5 4.06 2.2 -0.7
Rubber Gloves
HARTA 4.76 3.95 0.55 16.5 20.9 28.8 22.8 1.6 2.0 6.10 -22.0 3.81 24.9 -1.4
KOSSAN 6.64 7.15 0.15 39.0 49.3 17.0 13.5 2.9 3.7 9.09 -27.0 5.90 12.5 0.8
SUPERMX 2.16 2.15 0.57 17.5 21.8 12.3 9.9 2.4 3.0 3.54 -39.0 2.01 7.5 2.4
TOPGLOV 5.27 7.40 -0.17 24.6 29.1 21.4 18.1 2.4 2.8 7.03 -25.0 4.20 25.5 -1.5
KAREX 2.43 2.85 0.42 7.3 11.7 33.3 20.7 0.8 1.2 3.11 -21.9 2.13 14.1 3.0
INDUSTRIAL
SCIENTX 6.75 8.50 0.49 67.9 78.0 9.9 8.7 3.0 3.4 7.08 -4.7 5.08 32.9 0.7
SKPRES 1.35 1.75 0.68 9.4 14.5 14.4 9.3 3.3 5.1 1.44 -6.3 1.12 20.5 4.7
MEDIA
ASTRO 2.69 3.30 1.08 12.7 14.7 21.1 18.3 4.6 4.8 3.02 -10.9 2.41 11.6 3.5
MEDIA PRIMA 1.05 1.00 0.64 9.1 10.3 11.5 10.2 6.9 7.8 1.54 -31.8 1.01 4.0 -8.7
STAR 2.28 1.95 0.53 15.1 16.0 15.1 14.3 7.9 7.9 2.70 -15.6 2.20 3.6 1.8
PLANTATIONS
FGV 1.79 1.53 1.49 6.3 11.0 28.6 16.2 2.8 2.8 2.52 -29.0 1.31 36.6 15.5
IJMPLNT 3.34 3.50 0.56 13.7 15.7 24.4 21.2 2.1 2.4 3.80 -12.1 3.22 3.7 -1.8
IOICORP 4.48 3.66 1.04 18.7 21.1 23.9 21.3 2.2 2.7 5.04 -11.1 4.07 10.1 1.8
KLK 24.20 21.12 0.94 108.2 117.7 22.4 20.6 2.2 2.4 25.00 -3.2 22.20 9.0 0.8
SIME 8.50 7.45 1.18 30.8 35.3 27.6 24.1 2.6 3.3 8.60 -1.2 7.00 21.4 4.9
UMCCA 5.96 6.54 0.47 25.5 31.1 23.4 19.2 2.7 2.7 6.21 -4.0 5.53 7.8 -0.7
PROPERTY
GLOMAC 0.70 0.68 0.61 5.5 8.0 12.8 8.8 8.6 5.7 0.87 -19.5 0.68 2.9 0.7
HUAYANG 1.09 1.29 0.64 25.2 20.3 4.3 5.4 3.7 3.7 1.45 -24.7 1.05 3.8 -3.5
IOIPG 2.18 2.16 0.93 13.3 14.9 16.4 14.6 3.2 3.7 2.65 -17.7 1.99 9.5 3.8
Note: IOIPG proposed 1 for 4 rights issue share, at an issue price of RM1.38 per rights share. Ex-Target price RM1.98. For more detail please refer to 21.11.16
MAHSING 1.49 1.60 0.69 14.5 12.5 10.3 11.9 4.0 3.7 1.70 -12.4 1.24 20.2 4.2
SNTORIA 0.74 0.84 0.33 9.1 14.6 8.1 5.1 2.7 2.7 0.88 -15.9 0.69 7.2 -7.5
SPSETIA 3.20 3.45 0.69 26.6 23.9 12.1 13.4 4.2 4.1 3.59 -10.9 2.80 14.3 2.2
SUNWAY 3.04 3.26 0.48 28.4 34.0 10.7 8.9 3.6 3.6 3.24 -6.2 2.87 5.9 0.3
REIT
SUNREIT 1.72 1.79 0.53 8.9 10.1 19.4 17.0 5.2 5.9 1.84 -6.5 1.44 19.4 0.0
CMMT 1.61 1.81 0.73 8.7 9.1 18.6 17.7 5.4 5.7 1.62 -0.6 1.39 15.8 5.2
TELECOMMUNICATIONS
AXIATA 4.69 5.35 1.16 20.7 24.0 22.6 19.5 3.6 4.2 6.20 -24.4 4.11 14.1 -0.6
DIGI 4.88 4.95 0.97 21.2 21.5 23.1 22.7 4.3 4.4 5.25 -7.0 4.31 13.2 1.0
MAXIS 6.12 5.80 0.72 24.7 25.7 24.8 23.8 3.3 3.3 6.64 -7.8 5.36 14.2 2.3
TM 6.11 7.95 0.70 25.2 27.6 24.3 22.2 3.7 4.1 6.90 -11.4 5.81 5.2 2.7
TECHNOLOGY
Semiconductor & Electronics
IRIS 0.15 0.14 1.12 -0.6 1.6 na 8.8 0.0 0.0 0.24 -39.6 0.10 45.0 31.8
INARI 3.56 4.10 0.80 21.5 25.7 16.6 13.9 1.2 1.4 3.63 -2.0 2.57 38.8 7.2
Note: INARI proposed bonus issue shares on the basis of 1 for 1. For more detail please refer to 24.11.16 report.
MPI 7.83 9.40 0.53 88.9 101.9 8.8 7.7 2.9 2.9 10.48 -25.3 6.86 14.1 5.7
UNISEM 2.53 2.85 0.77 27.2 29.3 9.3 8.6 4.7 4.7 2.77 -8.7 1.94 30.4 7.2
TRANSPORTATION
Airlines
AIRASIA 2.51 2.79 1.14 37.2 39.4 6.7 6.4 1.6 2.0 3.30 -23.9 1.29 94.6 9.6
AIRPORT 6.25 6.64 1.45 9.3 9.7 66.9 64.5 1.4 1.4 7.30 -14.4 5.43 15.1 3.1
Freight & Tankers
TNLOGIS 1.55 2.03 0.89 21.6 24.0 7.2 6.5 3.5 4.5 1.76 -11.9 1.13 37.2 -2.5
WPRTS 4.30 4.82 0.66 19.3 20.2 22.3 21.3 3.4 3.5 4.59 -6.3 3.62 18.8 0.0
PLANTATIONS
WILMAR 3.75 3.45 0.92 28.3 29.8 13.3 12.6 2.1 2.1 3.8 -0.3 2.61 43.7 4.5
IFAR 0.54 0.48 1.14 3.9 4.1 13.7 12.9 0.7 0.8 0.6 -14.4 0.41 30.5 1.9
BUY : Total return within the next 12 months exceeds required rate of return by 5%-point.
HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point.
SELL : Total return is lower than the required rate of return.
Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months.
Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
IPO
TA Securities A Member of the TA Group
Friday, 13 January 2017
FBM KLCI: 1,677.76
Sector: REIT
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
Page 1 of 9
TA Securities
A Member of the TA Group 13-Jan-17
Background
KIP Real Estate Investment Trust (REIT) is principally invested in a portfolio of
income generating properties used primarily for retail purposes. Focusing
towards community-centric retail centres, KIP REIT keeps a long term
investment horizon, with a holding period of at least five years. It has an initial
portfolio of 6 community-centric retail centres worth RM580.0mn.
KIP REIT is scheduled to be listed on 6 February 2017. Based on the IPO price of
RM1.00/unit, KIP REITs market capitalisation will be RM505.3mn. The trustee,
Pacific Trustees Berhad, on behalf of KIP REIT has entered into SPAs to acquire
properties from the vendors for a purchase consideration of RM580.3mn, to be
satisfied via the issuance of 271.15mn consideration units and cash
consideration of RM309.1mn, which will be funded from listing proceeds and
borrowings.
IPO Structure
KIP REITs IPO consists of an institutional offering and retail offering, totaling
up to 234.2mn new units see Figure 2. The Promoters will eventually own a
53.7% stake in KIP REIT post IPO exercise- see Figure 3.
Page 2 of 9
TA Securities
A Member of the TA Group 13-Jan-17
Figure 3: Estimated shareholding structure upon listing
Portfolio Details
KIP REITs initial portfolio consists of five-community-centric retail centres
known as KiP Mart and a neighbourhood retail centre known as KiP Mall see
Figure 4. These assets are mainly situated in the southern states of Malaysia,
namely three locations in Johor and one each in Negeri Sembilan, Melaka and
Selangor see Figure 5.
On a pro-forma basis, the 3 KiP Marts in Johor collectively contributed 59% and
65% of the Trusts FY16 revenue and net property income (NPI) respectively
see Figure 6 and 7. In terms of trade mix, KIP REIT offers a wide range of retail
stores see Figure 8. As at 31 Oct 2016, fashion apparel outlets and fresh
market and supermarket were the key contributors to gross rental income,
contributing 27% and 25% respectively. Meanwhile, food and beverage
accounted for 12% of gross rental income see Figure 9.
Page 3 of 9
TA Securities
A Member of the TA Group 13-Jan-17
Figure 6: Revenue Breakdown by Properties Figure 7: Net Property Income Breakdown by Properties
Figure 8: Breakdown of trade mix by Lettable Area Figure 9: Breakdown of trade mix by Gross Rental Income
Page 4 of 9
TA Securities
A Member of the TA Group 13-Jan-17
Promoters and Management Team
Dato Chew Lak Seong and Dato Ong Kook Liong are the Promoters of KIP REIT.
The promoters are also the founders of the KIP group of companies. Post IPO,
the Promoters will eventually own a 53.7% stake in KIP REIT. The management
team is led by the Chief Executive Officer, Lim Han Gie, who joined KIP group of
companies as the general manager supervising the property development
projects and the operations of KiP Marts in Malaysia.
Investment Case
1) Diversified portfolio in terms of geographical location and tenant base
2) Attractive organic and inorganic growth prospects
3) Solid financial position with low gearing level
KIP REIT's gross rental income is well distributed within its portfolio of 1,006
tenants as at 31 Oct 2016. No single tenant contributed more than 5% of the
trusts gross rental income. The top ten tenants of the trust contributed an
aggregate of 12% to gross rental income and collectively occupied 42% of the
portfolios occupied lettable area (LA) as at 31 Oct 2016.
Page 5 of 9
TA Securities
A Member of the TA Group 13-Jan-17
reaching the statutory gearing cap of 50%. With that, we believe KIP REIT has
no issue to fund the budgeted capex of RM9.1mn for FY17-18.
Risks
1) Major tenancies renewal to take place in FY17
2) Rising retail supply
Figure 11: Tenancy Expiry Profile - % of Occupied LA expiring Figure 12: Tenancy Expiry Profile - % of gross rental income
expiring
Distribution Policy
KIP REIT intends to distribute up to 100% of its distributable income for FY17
and FY18 and thereafter at least 90% of its distributable income, on a half yearly
basis. We project KIP REIT to pay out 6.58 6.63 sen per unit for FY17 & 18,
representing a 100% payout ratio. This translates to DPU yields of ~6.6% based
on the IPO price of RM1.00. For FY19, we forecast the trust to distribute 6.82 sen
per unit or 95% of its distributable income to unitholders, translating a yield of
6.8%.
Valuation
Based on the NAV/unit of RM0.98 upon listing, KIP REITs P/NAV is estimated
at about 1.02x (based on IPO price of RM1.00). On an average basis, this is
slightly lower than what other MREITs are currently trading at. We derive our
fair value of RM1.09, based on DDM valuation (cost of equity: 7.6%, terminal
growth: 1.5%). At RM1.09, the implied FY18 dividend yield would work out to
6.0%, which is slightly higher than sectors target yield of 5.5%. We think it is
fair for investors to demand for yield given its small asset base and market
capitalization.
Page 7 of 9
TA Securities
A Member of the TA Group 13-Jan-17
Earnings Summary (RM mn)
FYE June 2014# 2015# 2016# 2017f 2018f 2019f
Total Revenue 55.9 61.8 64.4 64.2 65.0 66.5
Net Property Income 32.8 38.3 42.2 42.0 42.6 43.9
NPI Margin (%) 58.6 61.9 65.6 65.4 65.5 66.0
Pretax profit 33.3 33.5 34.4
Distributable income 33.3 33.5 34.4
EPU (Sen) 6.6 6.6 6.8
EPU Growth (%) nm 0.7 2.8
PER (x) 15.2 15.1 14.7
DPU (sen) 6.6 6.6 6.8
Div Yield (%) 6.6 6.6 6.8
#-: Proforma
Source: TA Securities
Peers Comparison
Price Target price Market Cap PER (x) Div Yield (%) P/NAV
Recommendation
(RM) (RM) (RM bn) FY17 FY18 FY17 FY18 FY17 FY18
Sunway REIT Sell 1.72 1.79 5.1 19.4 17.0 5.2 5.9 1.2 1.2
CMMT Buy 1.61 1.81 3.3 18.6 18.1 5.8 5.9 1.3 1.3
KLCCP Stapled Group* NR 7.83 NR 14.1 18.5 17.8 4.8 4.9 1.1 1.1
IGB REIT* NR 1.71 NR 6.0 20.6 19.4 5.2 5.5 1.6 1.6
Pavilion REIT* NR 1.82 NR 5.5 20.2 19.4 4.9 5.2 1.4 1.4
Axis REIT* NR 1.63 NR 1.8 18.1 17.3 5.5 5.7 1.3 1.3
Al Salam* NR 1.04 NR 0.6 16.3 16.0 5.7 5.8 1.0 1.0
Average 18.8 17.9 5.3 5.5 1.3 1.3
KIP REIT 1.00 1.09 0.5 15.2 15.1 6.6 6.6 1.0 1.0
* Based on consensus number
Source: Bloomberg, TA Securities
Page 8 of 9
TA Securities
A Member of the TA Group 13-Jan-17
( T HI S P AGE I S I NT E N T I ON AL L Y L E FT B L ANK)
Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months.
Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and
opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts.
We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may
have an interest in the securities and/or companies mentioned herein.
For TA SECURITIES HOLDINGS BERHAD(14948-M)
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Page 9 of 9
TA Securities
COMPANY UPDATE
Friday, January 13, 2017
A Member of the TA Group FBM KLCI: 1,677.76
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Sector: Finance
N
Malayan Banking Berhad et TP: RM8.00 (-3.7%)
Maybank Indonesia to Sell Stake in WOM Finance Last Traded: RM8.31
THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* SELL
TA Research Team Coverage Tel: +603-2167 9610 liwong@ta.com.my www.taonline.com.my
Finance recently turned around, reporting 9M16 PBT of Rp 73bn (from loss of Share Performance (%)
Rp 22bn in 9M15) on the back of more intense collection efforts. ROE dipped Price Change Maybank FBM KLCI
from 13.4% in 2013 to 2.1% in 2.15 before recovering back to 9.8% in 9M 1 mth 1.3 2.2
2016. In terms of asset quality, WOM Finances net NPL and gross NPL ratios 3 mth 5.2 0.3
6 mth 3.6 1.5
have deteriorated slightly to 1.36% and 3.84% in September 2016 from 1.01% 12 mth (3.1) 0.6
and 2.95% a year ago.
(12-Mth) Share Price relative to the FBM KLCI
Impact and valuation
We make no change to our earnings estimates, at this juncture. TP is
maintained at RM8.00. This translates to a reasonable implied FY17e PBV of
1.17x. The industry is currently trading at average PBV of 1.1x. However, given
that share price had risen sharply in recent weeks, we downgrade Maybank
from hold to SELL on the back of the potential downside risk in share price.
Page 1 of 2
TA Securities
A Member of the TA Group 13-Jan-17
Interest income 17,851.7 19,792.8 21,352.9 22,735.1 24,099.6 Return and efficiency
Interest expense (8,148.0) (8,678.7) (9,969.8) (10,775.9) (11,737.2) ROE (%) 13.6% 13.6% 11.9% 9.7% 11.2%
Net interest income 9,703.7 11,114.1 11,383.1 11,959.2 12,362.4 ROA (%) 1.1% 1.1% 1.0% 0.8% 1.0%
Islamic banking income 3,271.2 3,938.6 4,411.3 4,852.4 5,337.6 Net interest margin (%) 1.7% 1.7% 1.8% 1.7% 1.7%
Total non-interest income 5,555.7 6,185.1 6,432.2 6,808.9 7,405.8 Int income/total income (%) 52.4% 52.4% 52.3% 51.2% 50.6%
Total income 18,530.6 21,237.9 22,226.6 23,620.5 25,105.8 Non-interest/total income (%) 29.9% 29.9% 27.2% 26.9% 26.7%
Overhead expenses (9,111.3) (10,285.0) (10,593.6) (11,123.3) (11,790.7) Cost-to-income (%) 49.2% 49.2% 49.4% 48.7% 48.1%
Operating profit 9,419.3 10,952.9 11,633.0 12,497.2 13,315.2
Loan loss provisioning (470.8) (2,012.6) (3,600.6) (2,747.7) (2,283.9) Balance sheet
Associates contributions 163.1 211.2 211.2 211.2 211.2 Loans growth (%) 13.3% 13.3% 12.3% 6.6% 6.9%
Profit before tax 9,111.6 9,151.5 8,243.6 9,960.7 11,242.5 Gross Impaired Loans ratio (%) 1.5% 1.5% 1.9% 2.5% 2.5%
Taxation (2,200.5) (2,165.2) (1,978.5) (2,390.6) (2,698.2) Net Impaired Loans ratio (%) 1.0% 1.0% 1.4% 1.8% 1.8%
Minority interests (194.6) (150.4) (150.4) (150.4) (150.4) Collective Allowance ratio (%) 1.0% 1.0% 0.9% 0.9% 1.0%
Net profit 6,716.5 6,835.9 6,114.7 7,419.7 8,393.8 Loan loss reserves (%) 1.5% 1.5% 1.4% 1.7% 1.7%
Loan loss coverage (%) 95.6% 95.6% 72.0% 66.0% 67.7%
Balance Sheet Statement Deposit growth (%) 11.1% 11.1% 8.8% 8.5% 8.6%
FYE 31 Dec (RMmn) FY14 FY15 FY16e FY17e FY18e LD ratio (%) 93.2% 93.2% 96.1% 94.5% 93.0%
Cash and short-term funds 52,852.9 55,647.4 64,838.7 72,315.1 80,537.7 Investment statistics
Deposit with FIs 16,106.1 13,618.3 13,618.3 13,618.3 13,618.3 PER (x) 12.61 12.61 12.39 13.85 11.42
Marketable securities 119,535.9 129,858.6 129,858.6 129,858.6 129,858.6 PBT growth rate (%) 2.7% 2.7% 0.4% -9.9% 20.8%
Total current assets 188,494.9 199,124.3 208,315.6 215,792.0 224,014.6 EPS (sen) 65.89 65.89 67.06 59.99 72.79
Net loans and advances 403,513.1 453,492.6 482,017.4 514,819.7 551,596.3 EPS growth rate (%) 2.5% 2.5% 1.8% -10.6% 21.3%
Fixed assets 3,283.6 3,378.3 3,378.3 3,378.3 3,378.3 BV per share (RM) 5.43 5.43 6.32 6.58 6.97
Takaful Fund assets 4,972.1 4,355.7 4,573.4 4,802.1 5,042.2 PBV (x) 1.53 1.53 1.31 1.26 1.19
Other long-term assets 40,036.3 47,993.7 49,634.0 54,089.2 58,849.6 DPS (sen) 57.00 57.00 54.00 45.00 48.00
Total assets 640,300.0 708,344.5 747,918.7 792,881.3 842,881.0 Dividend yield (%) 6.4% 6.9% 6.5% 5.4% 5.8%
Customer deposits 439,569.4 478,150.5 518,814.3 563,213.6 611,743.6 PBT Breakdown - By Geographical Segment
Deposits from other FIs 57,387.4 56,671.8 54,971.7 53,322.5 51,722.8 FYE 31 Dec FY11 FY12 FY13 FY14 FY15
Repurchase securities 3,166.4 4,498.6 3,598.9 2,879.1 2,303.3 Malaysia 76% 70% 70% 71% 73%
Bills and acceptances 2,017.6 1,803.2 1,803.2 1,803.2 1,803.2 Singapore 14% 14% 14% 14% 16%
Borrowings 58,619.2 79,867.6 78,260.6 76,701.9 75,189.8 Indonesia 5% 7% 7% 3% 4%
Liabilities to policyholders 24,798.8 23,839.3 24,316.1 24,802.5 25,298.5 Others 5% 9% 9% 11% 8%
Total liabilities 585,558.8 644,831.0 681,764.8 722,722.7 768,061.2
Minority interest 1,766.6 1,818.5 1,968.9 2,119.4 2,269.8
Shareholders' funds 52,974.6 61,695.0 64,185.0 68,039.3 72,549.9
Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months.
Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and
opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts.
We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may
have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD(14948-M)
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Page 2 of 2
RESULTS UPDATE
TA Securities A Member of the TA Group
Friday, January 13, 2017
FBM KLCI: 1,677.76
Sector: Oil and Gas
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
Page 1 of 3
TA Securities
A Member of the TA Group 13-Jan-17
Valuation
Due to near-term earnings volatility, we revise our valuation
methodology to P/B (previously: PER). This is consistent with other oil
and gas stocks under our coverage.
Therefore, our TP is reduced to RM0.52 based on 0.7x CY17 P/B. This
implies a 0.2x discount to our oil and gas bellwether SapuraKencana
Petroleum. We deem the discount justified as Pantech has a smaller
market cap with less direct exposure to crude oil price.
Maintain Buy on Pantech where downside is cushioned by decent
dividend yield of 3.2%-4.2% in FY17-19. Key risks to our call include
slower than expected recognition of RAPID orders and sustained margin
compression.
Core EPS (sen) 1.0 0.8 28.1 2.0 (48.1) 3.2 4.4 (28.3)
DPS (sen) 0.3 0.5 (40.0) 0.5 (40.0) 1.3 1.6 (18.8)
Operating Margin
Trading of Pipes, Fitting & Flanges 8% 6% 10% 8% 10%
Manufacturing of Pipe Fittings 11% 8% 12% 9% 12%
Page 2 of 3
TA Securities
A Member of the TA Group 13-Jan-17
Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months.
Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and
opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts.
We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may
have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD(14948-M)
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Page 3 of 3
Friday, 13 January, 2017
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change
without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising
from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD (14948-M)
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
T e c h n i c a l V i e w
TA Securities A Member of the TA Group
Friday, January 13, 2017
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD
Change High Low
Name 12-Jan Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change
FBMKLCI 1677.76 2.55 1,682.74 1,673.44 1,606.84 1,644.89 1,682.93 68.57 1,659.09 1,640.56 1,639.70 40.19 13.50 28.20 26.69 10.13 5.09 5.039 BUY BUY - -
AFFIN 2.45 -0.05 2.54 2.45 2.30 2.39 2.47 66.09 2.42 2.36 2.30 35.28 5.78 48.42 29.50 0.04 0.04 0.006 BUY BUY - -
AFG 3.74 0.00 3.75 3.73 3.67 3.74 3.80 48.27 3.74 3.77 3.76 18.37 19.63 11.20 (1.26) -0.01 -0.01 0.002 SELL BUY - -
AMBANK 4.49 0.02 4.50 4.47 4.21 4.36 4.51 65.46 4.36 4.34 4.24 31.77 12.42 20.44 19.35 0.05 0.04 0.012 BUY BUY - -
AXIATA 4.69 -0.03 4.82 4.68 4.39 4.62 4.84 53.12 4.68 4.53 4.57 30.84 9.73 35.43 21.11 0.05 0.03 0.020 BUY BUY - -
CIMB 4.86 0.04 4.87 4.82 4.44 4.64 4.84 71.18 4.69 4.64 4.69 36.50 14.68 25.97 21.82 0.04 0.00 0.038 BUY BUY - -
DIGI 4.88 -0.03 4.99 4.88 4.84 4.93 5.02 40.42 4.89 4.94 4.96 18.36 15.50 40.17 2.86 -0.02 -0.02 (0.002) BUY SELL BUY -
GAMUDA 4.94 0.00 4.95 4.93 4.72 4.85 4.98 62.01 4.89 4.82 4.82 19.63 16.28 17.00 3.35 0.04 0.02 0.015 BUY BUY - -
GENTING 8.37 0.07 8.40 8.25 7.65 7.99 8.33 66.53 8.10 8.00 7.94 31.00 12.35 24.69 18.64 0.08 0.04 0.048 BUY BUY - -
GENM 4.82 -0.03 4.88 4.79 4.46 4.66 4.85 63.13 4.70 4.67 4.66 31.29 12.89 17.52 18.40 0.04 0.01 0.030 BUY BUY - -
IHH 6.35 -0.05 6.44 6.31 6.32 6.37 6.42 44.34 6.38 6.39 6.38 18.69 13.75 11.08 4.94 0.00 -0.01 0.002 BUY BUY - -
IOICORP 4.48 -0.02 4.54 4.46 4.33 4.42 4.52 59.51 4.46 4.41 4.40 29.62 8.57 46.00 21.05 0.03 0.02 0.011 BUY BUY - -
MALAKOFF 1.36 0.00 1.39 1.35 1.32 1.37 1.42 47.50 1.36 1.36 1.38 25.99 13.94 17.24 12.05 0.00 0.00 0.000 BUY BUY - BUY
MAXIS 6.12 0.00 6.18 6.11 5.87 6.04 6.20 54.80 6.09 6.02 5.95 22.67 14.83 15.22 7.85 0.05 0.04 0.009 BUY BUY - -
MAYBANK 8.31 0.01 8.33 8.21 7.66 8.03 8.40 67.79 8.19 7.97 7.89 32.05 19.41 26.10 12.64 0.12 0.09 0.033 BUY BUY - -
MBSB 1.01 0.01 1.05 1.00 0.86 0.92 0.98 80.18 0.94 0.91 0.91 51.20 6.98 30.97 44.22 0.02 0.01 0.010 BUY BUY - -
RHBBANK 4.95 0.02 5.00 4.94 4.58 4.79 5.00 61.40 4.84 4.79 4.75 28.25 8.33 29.87 19.92 0.05 0.02 0.024 BUY BUY - -
SIME 8.50 0.00 8.59 8.49 7.86 8.24 8.62 67.52 8.39 8.20 8.16 34.36 15.00 27.19 19.36 0.11 0.08 0.033 BUY BUY - -
TENAGA 14.00 0.00 14.06 13.96 13.57 13.82 14.07 55.16 13.89 13.89 14.03 24.27 18.98 13.29 5.29 -0.02 -0.06 0.039 BUY BUY - -
TM 6.11 -0.02 6.20 6.10 5.84 6.02 6.19 51.63 6.07 6.05 6.18 28.06 17.16 34.52 10.90 -0.01 -0.04 0.032 BUY BUY - -
WPRTS 4.30 0.01 4.30 4.25 4.22 4.30 4.37 49.86 4.30 4.31 4.31 11.83 22.09 24.29 (10.26) -0.01 -0.01 0.001 SELL BUY - BUY
AIRASIA 2.51 0.13 2.51 2.37 2.10 2.34 2.57 57.37 2.27 2.42 2.55 28.07 23.54 50.26 4.53 -0.07 -0.10 0.028 BUY BUY BUY -
AIRASIA X 0.39 0.00 0.40 0.39 0.35 0.37 0.39 59.10 0.37 0.37 0.39 26.23 15.56 20.07 10.67 0.00 -0.01 0.004 BUY BUY - -
ARMADA 0.63 0.00 0.65 0.63 0.59 0.62 0.66 53.98 0.63 0.60 0.62 28.41 15.08 26.68 7.97 0.01 0.01 0.002 BUY BUY - -
BINAPURI 0.43 0.00 0.44 0.43 0.40 0.43 0.45 51.61 0.43 0.42 0.43 27.73 19.76 23.82 14.18 0.00 0.00 0.001 BUY BUY - -
CMSB 3.97 0.08 3.97 3.89 3.81 3.89 3.97 58.50 3.90 3.86 3.79 26.32 12.14 34.79 10.46 0.03 0.03 0.001 BUY BUY - BUY
DIALOG 1.56 0.01 1.57 1.54 1.51 1.54 1.56 61.55 1.55 1.54 1.54 17.30 6.84 14.05 10.46 0.01 0.00 0.003 BUY BUY - -
ECO WORLD 1.37 0.01 1.37 1.36 1.34 1.36 1.38 54.49 1.36 1.37 1.36 10.60 10.43 10.21 0.17 0.00 0.00 0.000 BUY BUY - BUY
GADANG 1.04 -0.01 1.06 1.04 0.96 1.03 1.10 51.63 1.05 1.00 1.03 19.56 13.73 26.53 5.83 0.01 0.01 0.003 BUY BUY - -
HSL 1.64 -0.02 1.64 1.64 1.58 1.64 1.70 47.97 1.64 1.64 1.67 25.06 22.41 19.28 2.65 -0.01 -0.01 0.006 BUY BUY - -
ISKANDAR 0.90 0.00 0.91 0.90 0.79 0.85 0.90 66.26 0.86 0.83 0.85 35.45 14.74 27.90 20.71 0.01 0.01 0.008 BUY BUY - -
KIMLUN 2.20 0.05 2.20 2.17 2.10 2.15 2.21 58.59 2.15 2.13 2.15 20.72 18.25 16.84 2.46 0.01 0.00 0.005 BUY BUY - -
KKBE 1.34 0.04 1.35 1.32 1.13 1.25 1.37 59.13 1.30 1.26 1.31 40.53 18.99 23.06 21.53 0.01 0.00 0.013 BUY BUY - -
MUDAJAYA 0.90 0.00 0.91 0.90 0.81 0.89 0.97 53.38 0.90 0.85 0.87 28.57 25.56 21.62 3.02 0.01 0.01 0.000 BUY BUY - -
MRCB 1.41 0.01 1.42 1.39 1.32 1.37 1.41 63.30 1.37 1.35 1.34 22.93 9.39 22.63 13.53 0.02 0.01 0.005 BUY BUY - -
NAIM 1.67 0.01 1.70 1.65 1.26 1.53 1.80 59.34 1.65 1.48 1.47 38.83 5.35 47.02 33.48 0.06 0.05 0.016 BUY BUY - -
SKPETRO 1.70 0.02 1.73 1.69 1.56 1.66 1.77 58.17 1.70 1.61 1.56 27.08 16.09 27.81 10.99 0.04 0.04 0.000 BUY BUY - -
SUNCON 1.69 0.00 1.70 1.69 1.67 1.69 1.71 53.71 1.69 1.67 1.66 18.83 15.19 12.47 3.64 0.01 0.01 (0.001) BUY SELL - -
UEMS 1.12 0.01 1.14 1.11 1.03 1.08 1.12 68.42 1.09 1.06 1.06 28.40 15.13 16.82 13.27 0.01 0.01 0.006 BUY BUY - -
WASEONG 0.84 -0.01 0.84 0.84 0.75 0.81 0.86 58.49 0.83 0.80 0.82 31.32 25.49 18.51 5.82 0.01 0.00 0.007 BUY BUY - -
WCT 1.88 0.04 1.89 1.85 1.71 1.79 1.86 69.35 1.80 1.78 1.82 29.02 8.14 20.29 20.88 0.01 0.00 0.013 BUY BUY - -
The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being
existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash.
14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving
average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term
downside risk.
Moving Averages: A stocks short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share
price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches
below this level.
Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative
DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the
DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above
25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.
Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the
MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above
zero, and SELL signal sparked when the MACD diff value falls below zero.
Page 1 of 4
Technical Comments: Any price weakness on Bumi Armada shares should attract buyers looking for recovery upside towards the
200-day ma (70sen), with a convincing breakout to target the 38.2%FR (74sen) and 50%FR (81sen) ahead. Immediate support is from
the 30-day ma (60sen). Likewise, dips on SapuraKencana should encourage bargain hunting ahead of recovery towards the 61.8%FR
(RM1.89), with stronger resistance from the 50%FR (RM2.08). Key chart supports are at the 76.4%FR (RM1.66) and 200-day ma
(RM1.58).
Page 2 of 4
T e c h n i c a l V i e w
TA Securities A Member of the TA Group
Friday, January 13, 2017
FBMKLCI: 1,677.76
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
Report Description:
The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas .The following list is
derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and
30 potential breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger
band.
[MIDDLE BOLLINGER RANGEBOUND]
List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/SELL)
Bollinger Band RSI Moving Average
No Stock Name Price Vol 20-day avg vol
Lower Middle Upper 14-day 10-day 30-day 50-day
1 VIVOCOM INTERNAT 0.17 0.15 0.16 0.17 50.30 0.16 0.16 0.17 40,715,200 12,697,930
2 SUMATEC RESOURCE 0.08 0.04 0.07 0.10 56.72 0.09 0.07 0.06 33,396,500 55,260,640
3 XOX BHD 0.11 0.09 0.10 0.11 48.33 0.11 0.10 0.11 32,679,900 5,178,720
4 BUMI ARMADA BHD 0.63 0.59 0.62 0.66 53.98 0.63 0.60 0.62 21,303,000 11,412,810
5 YTL CORP BHD 1.55 1.52 1.55 1.57 51.16 1.54 1.54 1.54 11,625,000 6,845,930
6 JADI IMAGING 0.07 0.05 0.06 0.07 63.37 0.07 0.06 0.06 11,225,000 1,733,010
7 ASIA BIOENERGY T 0.06 0.05 0.06 0.06 56.41 0.06 0.06 0.06 10,196,100 16,239,120
8 ANZO HOLDINGS BH 0.25 0.23 0.25 0.26 56.65 0.25 0.24 0.23 9,197,600 8,485,585
9 KEY ALLIANCE GRO 0.05 0.03 0.04 0.05 61.51 0.04 0.04 0.04 8,826,900 788,740
10 BORNEO OIL BHD 0.17 0.15 0.17 0.19 53.69 0.17 0.16 0.16 8,327,300 37,148,290
11 SANICHI TECHNOLO 0.07 0.06 0.07 0.07 53.52 0.07 0.07 0.07 7,211,800 4,697,935
12 DIGISTAR CORP 0.17 0.16 0.16 0.17 49.19 0.16 0.17 0.17 7,208,900 2,060,770
13 AE MULTI HOLDING 0.15 0.14 0.15 0.15 51.89 0.15 0.15 0.15 6,249,800 479,645
14 AT SYSTEMATIZATI 0.04 0.03 0.03 0.04 53.35 0.03 0.03 0.03 5,348,700 4,198,765
15 RED SENA BHD 0.44 0.43 0.43 0.44 55.89 0.43 0.43 0.43 4,756,700 3,650,515
16 JAG BHD 0.12 0.11 0.11 0.12 55.86 0.11 0.11 0.11 4,631,500 6,566,435
17 PDZ HOLDINGS BHD 0.08 0.05 0.07 0.08 57.57 0.08 0.07 0.06 4,383,100 5,591,580
18 KARAMBUNAI CORP 0.06 0.04 0.05 0.06 59.04 0.05 0.05 0.05 4,100,000 939,600
19 DBE GURNEY RESOU 0.05 0.04 0.04 0.05 56.26 0.04 0.04 0.04 3,898,000 10,764,040
20 YTL POWER INTL 1.46 1.41 1.45 1.50 51.06 1.46 1.44 1.46 3,671,300 2,505,295
21 WESTPORTS HOLDIN 4.30 4.22 4.30 4.37 49.86 4.30 4.31 4.31 3,653,700 2,720,290
22 M3 TECHNOLOGIES 0.06 0.04 0.05 0.06 56.48 0.05 0.05 0.05 3,524,200 2,661,560
23 TEK SENG HOLDING 0.71 0.67 0.70 0.73 45.69 0.70 0.70 0.78 3,223,900 2,698,365
24 G NEPTUNE BHD 0.05 0.04 0.04 0.05 62.13 0.04 0.04 0.04 2,944,900 353,250
25 GADANG HLDGS BHD 1.04 0.96 1.03 1.10 51.63 1.05 1.00 1.03 2,832,100 6,274,170
26 ASTRO MALAYSIA 2.69 2.60 2.68 2.77 50.69 2.67 2.68 2.69 2,810,100 1,641,170
27 VSOLAR GROUP BHD 0.09 0.06 0.08 0.09 64.33 0.08 0.07 0.07 2,775,900 1,194,035
28 PERAK TRANSIT BH 0.17 0.16 0.16 0.17 53.99 0.16 0.16 0.16 2,626,000 1,725,930
29 TANCO HLDGS BHD 0.07 0.05 0.06 0.07 60.30 0.06 0.06 0.06 2,505,900 1,506,130
30 DIVERSIFIED GATE 0.04 0.02 0.03 0.04 61.35 0.03 0.03 0.03 2,422,600 1,545,405
Raw data sourced from Bloomberg
*Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second
criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they
are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range
bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns.
14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day
SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and
imply further near-term downside risk.
Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish
trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie.
Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band,
and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful
observation when projecting price targets.
Page 1 of 2
TA Securities
A Member of the TA Group
*Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that
trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum
traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy
breakout trades.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to
change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect
loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD (14948-M)
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Page 2 of 2
Friday, 13 January, 2017
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change
without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising
from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD (14948-M)
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
T e c h n i c a l V i e w
TA Securities A Member of the TA Group
Friday, January 13, 2017
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD
Change High Low
Name 12-Jan Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change
ASX 200 5766.86 -4.63 5801.20 5758.80 5493.79 5668.73 5843.66 67.06 5744.99 5606.37 5497.71 35.69 8.91 39.15 26.78 78.55 75.51 3.039 BUY BUY - -
-
BHP BILLITON 26.36 0.34 26.49 26.28 24.60 25.43 26.26 62.32 25.60 25.46 24.94 34.77 21.32 10.90 13.45 0.24 0.19 0.046 BUY BUY - -
RIO TINTO 62.87 0.59 63.34 62.50 58.39 60.33 62.28 62.96 60.71 60.28 59.06 32.92 20.78 11.49 12.15 0.64 0.54 0.097 BUY BUY - BUY
COMMONW BK AUSTR 85.03 0.03 85.59 84.70 79.97 82.91 85.84 71.56 84.06 81.63 79.01 35.57 8.81 38.35 26.76 1.65 1.62 0.029 BUY BUY - -
WESTPAC BANKING 33.43 -0.03 33.68 33.28 31.77 32.87 33.96 63.13 33.31 32.43 31.78 30.32 12.65 31.12 17.67 0.53 0.51 0.020 BUY BUY - -
AUST AND NZ BANK 31.24 31.35 31.05 29.48 30.68 31.88 64.98 31.17 30.06 29.10 30.08 13.37 37.16 16.71 0.65 0.67 (0.023) BUY SELL - SELL
NATL AUST BANK 31.52 0.11 31.66 31.34 29.46 30.81 32.15 66.43 31.36 30.25 29.26 31.60 9.01 46.57 22.59 0.67 0.67 0.001 BUY BUY - -
WESFARMERS 41.70 -0.47 42.28 41.52 41.21 42.09 42.97 46.55 42.31 41.71 41.47 16.93 19.34 14.29 (2.42) 0.16 0.21 (0.050) SELL SELL SELL -
WOODSIDE PETRO 32.01 0.31 32.17 31.91 30.80 31.47 32.14 60.90 31.61 31.16 30.37 25.63 17.68 11.76 7.94 0.37 0.39 (0.011) BUY SELL - -
NEWCREST MINING 21.06 -0.03 21.23 21.06 16.21 19.15 22.10 65.14 20.51 19.10 20.24 37.22 20.02 25.96 17.19 0.42 0.08 0.341 BUY BUY - -
WESTFIELD GROUP 9.30 -0.15 9.51 9.29 8.86 9.25 9.63 53.74 9.41 9.14 9.00 28.27 22.27 23.30 6.01 0.12 0.11 0.008 BUY BUY - -
FORTESCUE METALS 6.30 0.07 6.32 6.21 5.71 6.07 6.42 56.88 6.04 6.18 6.04 30.40 25.31 12.13 5.09 0.01 -0.01 0.012 BUY BUY - BUY
QBE INSURANCE 12.47 0.06 12.55 12.39 12.17 12.51 12.85 54.91 12.56 12.28 11.60 26.05 17.04 34.60 9.01 0.24 0.32 (0.082) BUY SELL - -
ORIGIN ENERGY 6.93 0.00 7.00 6.90 6.28 6.61 6.95 71.28 6.73 6.55 6.16 36.90 16.08 27.83 20.82 0.18 0.16 0.011 BUY BUY - -
AMP 5.22 -0.01 5.27 5.19 4.81 5.09 5.36 65.13 5.20 4.96 4.83 34.44 14.13 42.97 20.31 0.11 0.10 0.010 BUY BUY - -
SANTOS 4.23 0.05 4.24 4.20 3.77 4.09 4.41 57.30 4.12 4.16 4.02 30.96 23.74 13.91 7.22 0.03 0.01 0.014 BUY BUY - -
MACQUARIE GROUP 86.36 -0.39 86.77 86.10 86.10 87.41 88.72 49.42 87.64 86.26 84.19 19.74 21.33 14.67 (1.59) 0.78 1.07 (0.285) SELL SELL SELL -
SUNCORP GROUP 13.83 0.09 13.95 13.78 13.23 13.58 13.94 64.90 13.72 13.36 12.83 30.99 14.80 29.48 16.18 0.25 0.27 (0.025) BUY SELL - -
ORICA 18.28 0.20 18.33 18.08 16.66 17.63 18.61 64.87 18.02 17.47 17.30 23.65 11.53 23.44 12.13 0.28 0.25 0.034 BUY BUY - -
OIL SEARCH 7.39 -0.01 7.46 7.34 6.71 7.13 7.55 62.31 7.31 7.05 6.93 30.34 18.45 14.66 11.89 0.13 0.10 0.029 BUY BUY - -
COCA-COLA AMATIL 9.97 -0.11 10.06 9.90 9.57 9.99 10.41 52.16 10.15 9.82 9.68 25.51 22.96 31.25 2.55 0.14 0.15 (0.013) BUY SELL - SELL
AMCOR 15.06 0.06 15.18 15.00 14.46 14.94 15.42 56.21 15.08 14.74 14.59 24.04 13.64 29.42 10.40 0.14 0.15 (0.007) BUY SELL - -
STOCKLAND 4.45 -0.09 4.58 4.43 4.37 4.53 4.68 46.81 4.55 4.46 4.37 21.05 23.12 18.30 (2.07) 0.04 0.06 (0.015) SELL SELL SELL -
ALUMINA 1.82 0.01 1.85 1.79 1.74 1.79 1.85 58.90 1.81 1.77 1.72 28.12 15.65 23.21 12.47 0.03 0.03 (0.006) BUY SELL - -
COMPUTERSHARE 12.55 0.15 12.58 12.38 12.16 12.40 12.63 62.95 12.48 12.22 11.79 19.17 12.91 32.65 6.26 0.19 0.23 (0.039) BUY SELL - -
QANTAS AIRWAYS 3.51 0.11 3.57 3.39 3.27 3.36 3.45 67.77 3.37 3.33 3.23 32.22 11.79 17.40 20.43 0.04 0.04 0.003 BUY BUY - BUY
SIMS METAL MGMT 12.98 -0.02 13.18 12.85 12.54 13.00 13.45 54.17 12.88 12.97 12.48 29.81 21.87 24.64 7.94 0.09 0.16 (0.073) BUY SELL - -
The table below consists of the top 30 ASX 200 Index component stocks, weighted by market capitalization in descending order,
with some popular technical indicators. Some other popularly traded stocks are included at the bottom section.
The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals
while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash.
Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on
the given date.
Page 1 of 2
TA Securities
A Member of the TA Group
14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-
day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and
imply further near-term downside risk.
Moving Averages: A stocks short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if
share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed
broken if it breaches below this level.
Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a
negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+
crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the
trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.
Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and
the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff
rises above zero, and SELL signal sparked when the MACD diff value falls below zero.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and
opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We
accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an
interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD (14948-M)
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Page 2 of 2
T e c h n i c a l V i e w
TA Securities A Member of the TA Group
Friday, January 13, 2017
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
Stock Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD
Change High Low
Name 12-Jan Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change
HANG SENG 22,829.02 (106.33) 22,971.49 22,751.67 21,357.40 22,171.23 22,985.06 62.55 22,410.39 22,347.73 22,450.41 36.87 20.85 22.23 16.02 73.38 -61.58 134.965 BUY BUY - -
HSBC 63.95 0.10 64.00 63.60 61.74 63.28 64.82 58.67 63.32 63.18 61.96 29.26 20.82 14.21 8.44 0.42 0.42 (0.001) BUY SELL - -
CH MOBILE 84.85 (0.15) 85.75 84.60 79.60 82.40 85.20 59.55 83.42 82.94 84.05 28.42 17.67 23.50 10.75 0.10 -0.45 0.552 BUY BUY - -
CCONB 5.91 (0.03) 5.95 5.87 5.40 5.74 6.08 58.65 5.88 5.77 5.71 25.75 16.78 20.87 8.97 0.06 0.04 0.019 BUY BUY - -
ICBC 4.77 0.01 4.79 4.74 4.46 4.64 4.82 59.78 4.69 4.69 4.66 21.93 16.65 15.43 5.28 0.02 0.00 0.020 BUY BUY - -
CNOOC 9.73 (0.11) 9.95 9.70 9.45 9.88 10.31 44.13 9.80 9.98 9.92 21.93 21.57 11.00 0.36 -0.06 -0.06 (0.003) BUY SELL BUY SELL
CH LIFE 21.35 (0.20) 21.65 21.20 19.60 20.69 21.78 56.03 20.89 21.16 20.77 29.79 16.54 17.85 13.25 0.06 -0.05 0.113 BUY BUY - -
BOC 3.52 (0.01) 3.54 3.50 3.34 3.45 3.57 56.92 3.49 3.49 3.47 21.23 16.28 14.11 4.95 0.01 0.00 0.012 BUY BUY - -
SHK PROP 106.40 0.70 107.40 105.70 95.01 100.78 106.56 69.03 102.38 101.23 102.74 39.04 15.34 28.46 23.69 0.67 -0.40 1.062 BUY BUY - -
PETRO CH 6.12 (0.05) 6.22 6.11 5.64 5.93 6.21 66.01 5.98 5.77 5.57 33.41 10.08 33.96 23.34 0.15 0.14 0.019 BUY BUY - -
TENCENT 198.80 (2.00) 201.00 196.60 175.87 188.46 201.05 64.35 193.73 189.19 192.94 33.92 19.80 24.71 14.12 1.76 -0.35 2.118 BUY BUY - -
HKSE 186.60 (1.70) 188.30 185.20 178.58 184.49 190.39 45.16 184.97 188.97 194.78 19.34 28.26 39.68 (8.93) -2.30 -3.54 1.244 SELL BUY - -
CK HUTCHISON 91.60 (0.65) 92.40 91.30 86.98 89.76 92.53 53.31 90.24 90.99 92.61 22.15 18.01 27.58 4.14 -0.42 -0.95 0.533 BUY BUY - -
PING AN 40.05 (0.15) 40.50 39.85 37.71 39.72 41.72 49.20 39.53 40.52 40.84 24.33 19.82 15.66 4.51 -0.34 -0.50 0.163 BUY BUY - -
SINOPEC CORP 5.88 0.01 5.95 5.84 5.38 5.67 5.95 64.67 5.71 5.62 5.56 31.94 15.10 18.83 16.84 0.08 0.05 0.035 BUY BUY - -
CH SHENHUA 15.74 (0.06) 15.92 15.60 14.06 15.08 16.10 56.25 15.26 15.38 15.87 25.12 20.63 19.98 4.49 -0.03 -0.19 0.162 BUY BUY - -
CLP 74.85 (0.65) 75.40 74.40 70.42 72.96 75.51 57.98 73.46 73.51 74.56 30.29 13.43 21.06 16.87 0.09 -0.41 0.496 BUY BUY - -
LI & FUNG 3.53 (0.04) 3.61 3.52 3.38 3.56 3.74 49.60 3.53 3.51 3.52 23.62 17.09 19.17 6.53 0.00 0.00 0.002 BUY BUY - -
BOC HK 28.70 (0.45) 29.15 28.70 27.09 28.17 29.26 54.58 28.44 28.46 28.23 26.57 20.55 14.96 6.02 0.16 0.05 0.107 BUY BUY - -
HS BANK 149.20 (0.30) 149.80 148.60 142.66 146.47 150.27 61.81 147.26 146.65 145.32 21.61 12.57 17.02 9.04 0.95 0.58 0.375 BUY BUY - -
HK&CH GAS 14.40 (0.08) 14.50 14.32 13.34 13.88 14.42 64.50 13.99 14.00 14.30 33.96 14.51 27.21 19.45 0.01 -0.10 0.118 BUY BUY - -
SWIRE 78.25 0.15 78.35 77.75 71.42 75.08 78.74 66.36 76.38 75.64 76.88 25.63 13.68 32.19 11.96 0.29 -0.35 0.642 BUY BUY - -
HL PROP 18.00 0.20 18.10 17.70 15.73 16.86 17.99 68.97 17.11 17.03 16.98 36.32 15.63 22.49 20.69 0.16 -0.02 0.174 BUY BUY - -
WHARF 57.30 (0.65) 58.45 57.30 48.63 53.61 58.60 64.08 55.16 54.36 55.01 35.07 17.24 26.96 17.83 0.69 -0.07 0.752 BUY BUY - -
CH OV LAND 22.65 0.25 22.85 22.40 19.73 21.10 22.47 67.50 21.34 21.50 22.08 32.17 14.47 32.82 17.70 -0.01 -0.32 0.304 BUY BUY - -
POWER ASSETS 70.05 (1.05) 71.15 70.00 67.03 69.28 71.52 49.31 69.37 70.36 71.45 25.14 19.15 20.74 5.98 -0.38 -0.75 0.378 BUY BUY - -
BELLE 4.72 (0.04) 4.85 4.65 4.15 4.43 4.70 62.87 4.50 4.46 4.47 33.33 9.77 28.91 23.56 0.03 -0.02 0.053 BUY BUY - -
HENDERSON 42.90 (0.15) 43.45 42.80 39.96 41.52 43.07 61.78 41.97 41.86 42.41 27.57 12.78 28.81 14.79 0.06 -0.25 0.308 BUY BUY - -
BOCOMM 5.74 (0.01) 5.80 5.71 5.40 5.64 5.89 51.64 5.68 5.74 5.82 20.10 18.76 16.85 1.34 -0.03 -0.06 0.029 BUY BUY - -
CH COAL 3.80 (0.11) 3.93 3.79 3.53 3.74 3.95 48.58 3.78 3.79 3.98 21.44 17.32 22.94 4.12 -0.03 -0.07 0.036 BUY BUY - -
CH UNICOM 8.83 (0.10) 8.97 8.78 8.76 9.11 9.45 40.26 9.08 9.21 9.08 16.41 24.67 13.14 (8.27) -0.04 -0.02 (0.022) SELL SELL - -
BK EASIA 31.65 (0.35) 31.95 31.35 29.26 30.75 32.23 56.01 30.95 31.28 31.37 24.66 19.24 17.21 5.42 0.01 -0.21 0.219 BUY BUY - -
ESPRIT 6.15 (0.05) 6.23 6.08 6.02 6.22 6.42 44.72 6.15 6.28 6.30 13.47 14.97 14.75 (1.50) -0.06 -0.06 0.004 SELL BUY - -
MTR 38.40 (0.40) 38.75 38.35 37.03 38.05 39.07 49.02 38.30 38.18 39.22 21.31 22.64 25.87 (1.33) -0.13 -0.33 0.198 SELL BUY SELL -
SINO LAND 12.82 0.02 12.92 12.74 10.97 11.83 12.68 73.69 12.10 11.86 11.82 38.57 8.96 28.85 29.61 0.18 0.02 0.151 BUY BUY - -
CH RES 15.30 (0.02) 15.56 15.20 14.55 15.29 16.03 44.95 15.36 15.56 15.97 13.73 24.31 27.47 (10.58) -0.17 -0.25 0.076 SELL BUY - -
NEW WORLD 8.98 0.04 9.10 8.94 7.95 8.42 8.89 70.30 8.53 8.50 8.69 38.72 15.39 30.63 23.33 0.02 -0.08 0.103 BUY BUY - -
CH RES LAND 18.94 0.10 19.20 18.82 16.81 17.85 18.88 65.10 18.06 18.18 18.48 30.85 14.22 25.54 16.64 0.00 -0.21 0.214 BUY BUY - -
CH MERCHANT 20.55 0.20 20.55 20.25 18.46 19.49 20.51 66.68 19.83 19.48 19.55 28.27 15.47 19.56 12.79 0.21 0.04 0.168 BUY BUY - -
CH RES POWER 13.12 0.22 13.14 12.94 11.83 12.36 12.89 67.38 12.50 12.49 12.66 26.68 14.18 34.83 12.49 0.03 -0.09 0.117 BUY BUY - -
ALCORP 3.40 (0.10) 3.48 3.36 3.01 3.25 3.49 56.18 3.28 3.35 3.31 27.40 16.40 22.15 10.99 0.01 -0.02 0.026 BUY BUY - -
CATHAY 10.54 0.00 10.58 10.50 9.99 10.32 10.65 60.18 10.45 10.35 10.39 16.16 11.54 25.28 4.62 0.05 0.01 0.041 BUY BUY - -
CITIC 11.48 0.00 11.60 11.44 10.80 11.25 11.70 54.30 11.28 11.45 11.50 18.91 18.00 23.34 0.91 -0.04 -0.10 0.057 BUY BUY BUY -
COSCO 7.75 (0.01) 7.82 7.73 7.61 7.86 8.11 46.74 7.81 7.84 7.78 17.27 17.99 13.42 (0.72) -0.01 0.00 (0.012) SELL SELL SELL -
FIH MOBILE LTD 2.51 0.02 2.51 2.49 2.39 2.47 2.55 54.35 2.50 2.48 2.48 19.58 14.58 17.47 5.00 0.01 0.00 0.006 BUY BUY - -
GENHK 2.31 0.00 2.31 2.31 2.20 2.28 2.36 55.37 2.31 2.27 2.26 38.52 19.79 33.74 18.72 0.02 0.02 0.004 BUY BUY - -
AIA 46.25 (0.20) 46.65 46.15 42.60 44.42 46.23 60.84 44.79 44.75 45.89 30.77 17.08 26.46 13.69 -0.02 -0.48 0.455 BUY BUY - -
SANDS CHINA 34.75 (0.90) 35.45 34.20 32.12 33.73 35.33 51.86 34.18 34.81 35.25 23.36 25.57 22.53 (2.20) -0.13 -0.43 0.296 SELL BUY SELL -
GALAXY 35.45 (0.80) 36.20 35.15 32.23 34.10 35.96 55.90 34.48 35.04 34.70 28.42 21.31 20.08 7.12 0.17 -0.10 0.269 BUY BUY - -
The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending
order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section.
The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals
while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash.
Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on
the given date.
Page 1 of 3
TA Securities
A Member of the TA Group
Corporate News: Asia Pacific life insurance valuation peer group slid 25.4% in December, the first monthly decline since June for the dollar-
based gauge. The decrease was mainly caused by a decline of almost 10% for Chinese life peers, probably on concerns over potential bond
defaults and the 6.4% drop in local stocks index CSI 300. Bloomberg.
Technical Comments: China Life shares would need to sustain strength above the upper Bollinger band to extend higher towards the
50%FR (HKD23.57), with a confirmed breakout to challenge the 61.8%FR (HKD25.36) and 76.4%FR (HKD27.57) ahead, while
immediate support is found at the lower band (HKD19.59).
Page 2 of 3
TA Securities
A Member of the TA Group
14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-
day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and
imply further near-term downside risk.
Moving Averages: A stocks short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive
if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed
broken if it breaches below this level.
Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a
negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+
crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger
the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.
Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA)
and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD
diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions
are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no
liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in
the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD (14948-M)
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Page 3 of 3
T e c h n i c a l V i e w
TA Securities A Member of the TA Group
Friday, January 13, 2017
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
Stock Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD
Change High Low
Name 12-Jan Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change
FSSTI 2,993.00 (7.94) 3,022.22 2,991.41 2,845.06 2,928.72 3,012.38 67.64 2,948.85 2,933.40 2,888.52 36.16 15.64 23.83 20.52 25.37 16.55 8.822 BUY BUY - -
SINGTEL 3.79 0.00 3.82 3.78 3.60 3.70 3.80 62.45 3.72 3.73 3.74 28.42 16.60 15.97 11.81 0.01 -0.01 0.018 BUY BUY - -
DBS 18.12 0.08 18.22 18.12 17.15 17.68 18.20 66.98 17.70 17.76 17.10 35.19 19.94 21.62 15.25 0.20 0.18 0.018 BUY BUY - -
OCBC 9.25 (0.05) 9.39 9.23 8.87 9.11 9.35 59.76 9.15 9.14 8.96 30.32 17.97 18.98 12.35 0.07 0.05 0.017 BUY BUY - -
UOB 20.87 0.00 21.08 20.87 20.21 20.71 21.21 60.74 20.72 20.74 20.12 23.66 21.85 14.81 1.81 0.17 0.18 (0.008) BUY SELL - -
JARDINE M. 58.79 (0.91) 59.88 58.55 52.15 56.46 60.76 61.28 58.25 55.78 55.97 27.86 14.20 30.59 13.66 1.11 0.65 0.462 BUY BUY - -
WILMAR 3.75 0.07 3.76 3.68 3.56 3.66 3.75 62.51 3.65 3.65 3.54 25.91 16.16 16.32 9.75 0.03 0.03 (0.000) BUY SELL - -
HK LAND 6.69 0.02 6.79 6.64 5.89 6.41 6.93 60.27 6.62 6.39 6.39 25.58 11.23 31.67 14.34 0.11 0.06 0.053 BUY BUY - -
CAPLAND 3.13 (0.02) 3.17 3.13 2.94 3.05 3.15 63.55 3.09 3.06 3.05 26.13 10.92 22.03 15.21 0.02 0.01 0.015 BUY BUY - -
GENSP 0.92 (0.02) 0.95 0.92 0.88 0.93 0.97 48.27 0.92 0.94 0.92 23.52 18.43 17.38 5.09 0.00 0.00 0.000 BUY BUY - -
KEPPEL 6.13 0.00 6.20 6.13 5.69 5.95 6.22 68.14 5.96 5.95 5.71 35.86 16.46 22.79 19.40 0.09 0.07 0.013 BUY BUY - -
SGX 7.20 (0.02) 7.25 7.19 7.06 7.21 7.35 48.56 7.18 7.26 7.19 17.12 20.05 19.57 (2.93) -0.01 -0.01 0.003 SELL BUY - -
SIA 9.76 (0.08) 9.89 9.75 9.65 9.75 9.85 48.34 9.76 9.76 9.78 20.21 15.94 18.58 4.27 0.00 -0.02 0.017 BUY BUY - -
FNN 2.11 0.00 2.12 2.11 2.06 2.10 2.14 53.01 2.10 2.10 2.11 20.95 14.54 13.09 6.42 0.00 0.00 0.004 BUY BUY - -
NOBLE 0.18 0.00 0.18 0.17 0.16 0.17 0.18 53.01 0.18 0.17 0.17 21.24 15.10 23.20 6.14 0.00 0.00 0.001 BUY BUY - -
CITY DEV 8.73 0.04 8.78 8.66 7.92 8.32 8.71 68.87 8.47 8.35 8.39 33.64 11.41 26.87 22.23 0.07 0.00 0.066 BUY BUY - -
JARDINE S. 36.04 (0.40) 36.54 35.85 30.73 34.04 37.35 65.74 35.42 33.67 33.67 33.92 11.34 36.14 22.59 0.90 0.56 0.338 BUY BUY - -
SG PRESS 3.65 (0.05) 3.72 3.64 3.50 3.59 3.68 54.68 3.61 3.62 3.64 27.96 13.69 24.62 14.26 0.00 -0.01 0.017 BUY BUY - -
JARDINE C&C 40.69 (0.78) 41.70 40.69 39.35 40.65 41.94 49.04 41.03 40.73 40.65 21.62 22.45 11.83 (0.82) 0.14 0.06 0.085 SELL BUY SELL -
GOLDEN AGRI 0.43 (0.01) 0.43 0.43 0.42 0.43 0.44 50.51 0.43 0.43 0.42 15.25 18.86 15.19 (3.61) 0.00 0.00 (0.001) SELL SELL - -
SG TECH 3.34 (0.02) 3.37 3.32 3.19 3.29 3.40 56.95 3.30 3.32 3.26 21.73 16.57 20.80 5.17 0.01 0.00 0.007 BUY BUY - -
OLAM INT 2.04 (0.01) 2.05 2.03 1.93 2.02 2.11 54.34 2.00 2.03 2.03 20.97 12.32 17.31 8.65 0.00 -0.01 0.005 BUY BUY - -
CAP TRUST 1.98 (0.03) 2.02 1.96 1.84 1.92 2.01 58.45 1.95 1.93 1.94 28.76 20.29 23.72 8.47 0.01 0.00 0.014 BUY BUY - -
SEMBCORP 3.09 0.06 3.11 3.05 2.78 2.94 3.09 71.61 2.97 2.92 2.81 36.70 10.60 29.52 26.10 0.06 0.05 0.012 BUY BUY - -
SEMCORP M. 1.51 0.01 1.53 1.50 1.34 1.44 1.54 62.15 1.46 1.45 1.42 31.95 17.11 18.87 14.83 0.02 0.01 0.010 BUY BUY - -
CMFT DELGRO 2.51 (0.02) 2.54 2.49 2.47 2.54 2.60 46.28 2.51 2.55 2.51 16.31 20.39 14.05 (4.07) 0.00 0.00 (0.001) SELL SELL SELL SELL
STARHUB 2.92 (0.01) 2.95 2.90 2.74 2.83 2.93 55.88 2.86 2.86 2.92 25.49 17.18 18.93 8.30 -0.01 -0.03 0.022 BUY BUY - -
SIA ENG 3.47 0.02 3.49 3.46 3.32 3.38 3.45 63.31 3.40 3.39 3.43 27.09 13.98 26.50 13.12 0.00 -0.02 0.016 BUY BUY - -
IFOOD AGRI 0.54 0.00 0.54 0.54 0.51 0.54 0.57 50.03 0.53 0.55 0.52 26.02 20.60 20.93 5.42 0.00 0.00 (0.002) BUY SELL - -
YZJ 0.83 (0.02) 0.86 0.83 0.80 0.83 0.86 50.83 0.83 0.84 0.82 20.13 14.97 14.01 5.17 0.00 0.00 0.001 BUY BUY - -
The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization
in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom
section.
The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals
while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash.
Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on
the given date.
Page 1 of 2
INTERPRETATION OF TECHNICAL INDICATORS:
Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy
when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and
sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band.
14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-
day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and
imply further near-term downside risk.
Moving Averages: A stocks short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if
share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed
broken if it breaches below this level.
Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a
negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+
crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the
trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.
Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA)
and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD
diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to
change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss
arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD (14948-M)
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Page 2 of 2