MIB Research Summary - 4 Nov 2014

Berjaya Auto: Maintain Buy A play on weaker yen  Shariah-compliant

BAuto is a direct beneficiary of a weaker JPY with 60-65% of COGS denoted in that currency. Having imputed a weaker JPY/MYR, our FY15/16/17 forecast is lifted by 11%/16%/17%. Reiterate BUY with higher TP of MYR4.35 (+24%), pegged to higher CY15 PER target of 13x (from 12x) given its superior growth (37% 3-year earnings CAGR) and low PEG of 0.4x. Technical: Some profit-taking is setting in The FBMKLCI inched down 1.81 points to 1,853.34 yesterday and the FBMEMAS and FBM100 lost 4.79 points and 4.62 points respectively. In terms of market breadth, the gainer-to-loser ratio was 424-to-447 while 288 counters were unchanged. 1.86b shares were traded, valued at MYR1.90b. Today's trading idea is a Short-Term BUY on SKP Resources with a target price MYR0.765, MYR0.0.87 and MYR1.07.