- FY14 core net profit of MYR5.4b (a record-high) was in line with ours and consensus expectations.
- Positive earnings outlook as 1) coal generation trends up, 2) coal prices remain suppressed and 3) tax rate stays low.
- Raising FY15/16 earnings by 11%/13%, and TP to MYR16.00 (+14%); reiterate BUY.
MY Banking: Maintain Neutral
Loan growth ticks up in September |
- Industry loan growth ticked up to 9% YoY in Sep 2014 (8.6% YoY in Aug) supported by non-HH loan growth (+6.7% YoY);
- Positively, interest spreads continue to expand; keeping an eye on liquidity and consumer asset quality.
- Our 2014 loan growth forecast of 8.7% maintained. NEUTRAL on sector; BUY RHB, AFG, HL Bank, and HLFG
Felda Global Ventures: Maintain Hold
Bigger downstream plans in China? Shariah-compliant |
- FGV proposal to gain a 100%-control (presently 50%) of its downstream business in China is positive for the long term.
- Due to insufficient details, we are unable to assess its financial impact but we believe it is likely to be marginal.
- Maintain HOLD with unchanged SOP-based TP of MYR3.97.
Technical: Autumn correction is over
The FBM KLCI rose 36.29 points WoW to close at 1,855.15, as some consistent buying activities led the index up above the 1,850-mark. Volume rose from 1.58b to 2.75b shares.
The index traded from 801.27 to 936.63 from Oct 2008 to Apr 2009, but broke above 936.63 (Wave a/B) in Apr 2009. Its Wave b/B low was 836.51. We traced out a Wave C/B (of a 3-3-5 Flat) rebound phase, and the extended Fifth Elliott Wave (EW) of the major Flat v/C/B-leg correction from 801.27 stalled at 1,896.23 (8 Jul 2014 all-time high).
Today's trading idea is a Short-Term BUY on Hap Seng Consolidated with target price of MYR4.62, MYR4.78, MYR5.00 and MYR5.85 |
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