Key Indices
Top Stories
Company Update | Yinson Holdings (YNS MK/BUY/RM2.13/Target: RM2.40)
- As an addendum to Yinson’s 1HFY27 profit review on an ER basis, we found new information, including one-off financing costs for the early repayment of the Agogo junior loan, one-off incentive bonus for FPSO AN, and a poorer performance for FPSO MQ. While our EBITDA forecasts are aligned, the ER depreciation was nearly 3-4x of the IFRS equivalent, hence we cut our profit forecasts by up to 49%. Depreciation adjustment does not impact our valuation. Retain BUY; target price: RM2.40.
What’s Inside
Company Update | Public Bank (PBK MK/HOLD/RM5.00/Target: RM5.54)
- Public Bank’s 73.23%-owned subsidiary, PFHL, has issued a profit warning after conducting an impairment exercise to fully impair its goodwill amounting to HK$1.96b (RM1.02b). Based on Public Bank’s effective ownership of 73.23%, the impairment would translate into an estimated RM746m impact on the group’s consolidated earnings. Maintain HOLD and target price of RM5.54.
Market Spotlight
- The FBMKLCI continued to fall by 15.94pt to close at 1,607.76 last Friday on profit taking in index-linked counters as well as weaker sentiment across the board.
- US stocks were lower after the close on Friday, as losses in the technology, consumer services and healthcare sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Innoprise Plantations | INNO MK
- Trading Buy Range: RM1.96-1.97
Luxchem Corporation | LUXC MK
- Trading Buy Range: RM0.455-0.46
Powertechnic Group | POWER MK
- Trading Buy Range: RM0.21-0.215
Top Stories
Company Update | Yinson Holdings (YNS MK/BUY/RM2.13/Target: RM2.40)
- As an addendum to Yinson’s 1HFY27 profit review on an ER basis, we found new information, including one-off financing costs for the early repayment of the Agogo junior loan, one-off incentive bonus for FPSO AN, and a poorer performance for FPSO MQ. While our EBITDA forecasts are aligned, the ER depreciation was nearly 3-4x of the IFRS equivalent, hence we cut our profit forecasts by up to 49%. Depreciation adjustment does not impact our valuation. Retain BUY; target price: RM2.40.
What’s Inside
Company Update | Public Bank (PBK MK/HOLD/RM5.00/Target: RM5.54)
- Public Bank’s 73.23%-owned subsidiary, PFHL, has issued a profit warning after conducting an impairment exercise to fully impair its goodwill amounting to HK$1.96b (RM1.02b). Based on Public Bank’s effective ownership of 73.23%, the impairment would translate into an estimated RM746m impact on the group’s consolidated earnings. Maintain HOLD and target price of RM5.54.
Market Spotlight
- The FBMKLCI continued to fall by 15.94pt to close at 1,607.76 last Friday on profit taking in index-linked counters as well as weaker sentiment across the board.
- US stocks were lower after the close on Friday, as losses in the technology, consumer services and healthcare sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Innoprise Plantations | INNO MK
- Trading Buy Range: RM1.96-1.97
Luxchem Corporation | LUXC MK
- Trading Buy Range: RM0.455-0.46
Powertechnic Group | POWER MK
- Trading Buy Range: RM0.21-0.215
Key Indices
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
