Tuesday, August 19, 2014

Market Roundup | 18 August 2014


FBMKLCI   1861.75  -2.56pts   (-0.14%)     Volume  3.581b   Value 2.473b

 

 

 

1) The KLCI broke its winning streak after the index saw choppy trading thruout the day before closing in the red following the weaker US market over the weekend. In the regional market, SHCOMP +0.57% touched an 8 month high despite weaker housing data as well as investment data; the HSI closed flat at 0.00%. In the local market, PROPERTY +0.84% index was the outstanding sector today boosted by SPSETIA +2.61%, KSL +6.21%, SYMLIFE+7% whilst the PLANTATION -0.69% sector remained lacklustre as CPO continue to decline towards the 2000pts baseline. Market breadth was skewed towards the positive today after gainers inched past losers by 454 : 437. Futures closed at  1861.5 (parity).

 

 

 

2) Heavyweights : PBBANK +0.52% RM19.24, UMW +3.34% RM12.36, RHBCAP +3.11% RM9.28, MAXIS +0.92% RM6.57, BAT -2.70% RM70.40, PPB -2.91% RM14.68, GENTING -1.01% RM9.80, YTL -1.87% RM1.57.

 

 

 

3) DBT : GLOTEC 85.56mil @ RM0.05 (1.59% PUC @ 42.4% discount), APFT 6mil @ RM0.15 (1.90% PUC @ 16.7% discount), BJLAND 4.5mil @ RM0.775 (7.2% discount).

 

 

 

4) Situational:-

 

TGUAN  +8.33% RM2.86 - Thong Guan Industries Bhd is allocating about RM100.0m as capital expenditure till 2016 to position itself as a producer of high-value packaging materials and solutions in Asia Pacific. About 40.0% or RM40.0m of the investment would be for the production of high-end packaging materials and solutions at its Sungai Petani plant. While about RM5.0mil or 5.0% would be invested in the research and development (R&D) centre to purchase the necessary machinery and equipment. The centre will help us to develop a new range of highvalue plastic packaging solutions for our targeted customers in Asia Pacific.

 

 

 

ASTINO +1.10% RM1.83 - Roofing product maker Astino Bhd plans RM100.0m next year to expand its multi-system agro-house business in Penang. The plan was to set up another multi-system agro-house production facility to raise the contribution of the business to the group's revenue of 15% on two years. Presently the business generates about 10% of the group's yearly turnover. The company want to focus more on this segment because the residential construction sector is slowing down in the country, reducing the demand for roofing products.

 

 

 

5) Wing Tai

FYE 6/2014       Tover -25% RM434.6m    Net -47% RM70.4m   EPS 22.4sen

                                    9% below cons(f) 77.3m The lower revenue recorded was mainly due to the lower revenue from the property development division as revenue from property development division was RM220.5 million in the current year compared with RM395.2 million in the corresponding year. This situation arose from lower revenue recognition from the Verticas Residensi project in the current year. Hence operating profit of the property development division was RM55.2 million in the current year compared with RM135.4 million in the corresponding year.

 

The revenue from the retail division was RM185.3 million in the current year compared with RM179.1 million in the corresponding year while operating profit was RM24.7 million in the current year compared with RM35.7 million in the corresponding year due to highly promotional trend and increase in operating cost.

Joint ventures of RM7.1 million was also lower compared with RM8.8 million in the corresponding year.

 

Neutral - Trading in line with most mid cap developers at a valuation of 10.3x PE.

 

6) Market - Rotational play to continue in mid caps but the undertone of the broader market will be determined in the next two weeks with most big caps reporting quarterly numbers