Monday, September 22, 2014

Market Roundup | 19 September 2014


FBMKLCI   1849.49     +4.17pts   (+0.23%)     Volume  2.602b   Value 2.261b

 

1) The KLCI gained today after the Government decided to keep OPR rates at 3.25%. The stronger US overnight rose after jobless claims fell the most in 2 years for August; investors will also look to the biggest IPO ever in the U.S by ALIBABA. In the regional market, SHCOMP +0.58% and HSI +0.57% as the government is expected to boost cash in the financial system. In the local scene, TECHNOLOGY index +2.09% gained the most ground following strong gains led by exporters UNISEM, MPI, GHLSYS, GTRONIC after USD continue to strengthen. Market breadth was positive today as gainers beat losers by 578 : 251. Futures closed at 1848 (1pt discount).

 

2) Heavyweights : IHH+1.79% RM5.10, RHBCAP +2.82% RM9.10, MAYBANK+0.40% RM10.04, TENAGA +0.32% RM12.38, ASTRO +2.42% RM3.38, PBBANK +0.21% RM19.04, AMBANK  +1.02% RM6.93, MAXIS -2.20% RM6.21.

 

3) DBT : CHINWEL 21.525mil @ RM1.40 (7.898% PUC @ RM12.5% discount), MEGB 8.556mil @ RM0.355 (2.087% PUC), IRIS 2mil @ RM0.39.

 

4) Situational:-

MUHIBBAH+1.99% RM3.07 -  Muhibbah Engineering has been awarded a RM157m contract from Bintulu Port for the design, construction and completion of the proposed Samalaju Port Development project in Sarawak. The duration of the contract is 22 months.

 

5) ASTRO:   6mths 07/14 Rev+12.5% RM2.6bn   Net+24.9% RM266m  EPS  5.12   Div 4.5s

 

          Result in line with FY cons of RM540.5m

 

Yoy, revenue rose 12.5% attributed by TV segment(+12.7%) and Radio segment (+9%). TV segment was boosted by increase in subscription revenue on the back of a higher ARPU of RM98 (+3.3%) and higher Pay-TV residential subscribers by 126,800 (+3.77%).  Advertising rose RM9.2m due to festive seasons and Brazil World Cup.  Radio segment was driven by the pricing and inventory strategies in line with the strong listenership performance.

 

QoQ, Revenue for the current quarter of RM1,349.1m was 7.6% higher mainly due to an increase in subscription, advertising and other revenue RM29.9m, RM45.2m and RM20.1m respectively.The increase in subscription revenue was due to higher ARPU for Pay-TV residential subscribers of RM0.90 to RM98.00 and higher Pay-TV residential subscribers by 15,200. Advertising revenue for the current quarter of RM167.5m was higher by RM45.2m compared with the preceding quarter of RM122.3m, primarily due to the festive season and FIFA World Cup event. The increase in other revenue is due to an increase in licensing income of RM23.6m.

 

EBITDA margin decreased by 0.9% against the preceding quarter mainly due to an increase in content costs,primarily attributed to key sporting events. The increase was offset by lower installation costs, lower marketing and distribution costs and higher other operating income as a percentage of revenue.

 

With the launch of the M3B satellite, the Group will be able to introduce additional channels to appeal to a wider range of audience and support our growth initiatives. Hold

 

6) Market: expect mild recovery in tandem with global market after Scotland decision to reject independence. Immediate resistance at 1870 points.