Key Indices
Top Stories
Company Update | PPB Group (PEP MK/BUY/RM8.78/Target: RM12.55)
- We expect PPB’s earnings to remain resilient, supported by Wilmar’s contributions and positive outlook on the film exhibition segment. Despite the weaker operating outlook of the group’s core businesses amid volatile commodity prices, we believe much of the downside has already been priced in, with PPB currently trading close to -1SD to its five-year mean. Maintain BUY with a lower target price of RM12.55.
What’s Inside
Company Update | Maxis (MAXIS MK/BUY/RM3.54/Target: RM4.20)
- Maxis proposes to acquire 178,631 fibre subscribers that belong to Astro for a total cash consideration of RM83m. This will lift Maxis’ total home fibre subscriber base by 22% and increase customer stickiness through bundling opportunities. We view the transaction marginally negative given that it is a related party transaction. Maintain BUY on Maxis with a DCF-based target price of RM4.20/share. The stock offers a 5% dividend yield.
Market Spotlight
- The FBMKLCI rose 3.42pt to close at 1,611.56 last Friday.
- US stocks were lower after the close on Friday, as losses in the telecoms, consumer services and consumer goods sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Aumas Resources | AUMAS MK
- Trading Buy Range: RM0.35-0.365
Kobay Technology | KOBAY MK
- Trading Buy Range: RM2.16-2.17
Engtex Group | ENGT MK
- Trading Buy Range: RM0.425-0.43
Top Stories
Company Update | PPB Group (PEP MK/BUY/RM8.78/Target: RM12.55)
- We expect PPB’s earnings to remain resilient, supported by Wilmar’s contributions and positive outlook on the film exhibition segment. Despite the weaker operating outlook of the group’s core businesses amid volatile commodity prices, we believe much of the downside has already been priced in, with PPB currently trading close to -1SD to its five-year mean. Maintain BUY with a lower target price of RM12.55.
What’s Inside
Company Update | Maxis (MAXIS MK/BUY/RM3.54/Target: RM4.20)
- Maxis proposes to acquire 178,631 fibre subscribers that belong to Astro for a total cash consideration of RM83m. This will lift Maxis’ total home fibre subscriber base by 22% and increase customer stickiness through bundling opportunities. We view the transaction marginally negative given that it is a related party transaction. Maintain BUY on Maxis with a DCF-based target price of RM4.20/share. The stock offers a 5% dividend yield.
Market Spotlight
- The FBMKLCI rose 3.42pt to close at 1,611.56 last Friday.
- US stocks were lower after the close on Friday, as losses in the telecoms, consumer services and consumer goods sectors led shares lower.
Tehnical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Aumas Resources | AUMAS MK
- Trading Buy Range: RM0.35-0.365
Kobay Technology | KOBAY MK
- Trading Buy Range: RM2.16-2.17
Engtex Group | ENGT MK
- Trading Buy Range: RM0.425-0.43
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.
