FBMKLCI
1744.57pts - 20.95pts
(-1.19%) Volume 1.226b
Value 1.502b
1) The KLCI continue its lacklustre performance slipping
for the 3rd session out of 4 trading days after the U.S market was weighed down
by the weaker oil prices which in turn dragged down energy stocks. In the
regional market, SHCOMP -0.49% fell after volatility gauge jumped to 5 years
high after the nation's biggest oil producers slumped and brokerage declines
amid domestic growth concerns, HSCEI -1.03%, KOSPI -1.49%, NIKKEI -0.89%, HSI
-0.90% was inline with the weaker region. In the local scene, PLANTATION -1.70%
index was the biggest loser today dragged by CPO heavyweights IOICORP -3.17%,
KLK -1.75%, FGV -3.84%, KULIM -1.81%. Market breadth was negative with losers
led gainers by 626 :178. Futures closed at 1742 (2 pts discount).
2) Heavyweights : PBBANK -1.85% RM17.89, TENAGA -1.71%
RM13.76, SIME-2.08% RM9.40, MAXIS -3.34% RM6.65, IOICORP -3.17% RM4.58, PCHEM
-3.42% RM5.07, PETGAS -2.40% RM21.92, MISC +2.99% RM7.23.
3) DBT : REDTONE 39.688mil @ RM0.70 (7.611% PUC), IGBREIT
20mil @ RM1.28, MTRONIC 8.912mil @ RM0.10.
4) Situational:-
EATECH -25.38% RM0.485
- EA Technique saw a weak debut on the main market as the o&g
tugboat player opened 6 sens below its IPO price of RM0.65 and closed at its
day low at RM0.485 with 53.9mil traded in the market. With the RM74mil raised
via the IPO, part of the proceeds will be used for its expansion plans where
the group will convert its oil tanker into a Floating Storage and Offloading
(FSO) vessel next year.
5) ASTRO
9 months Revenue
+10% RM3,883m Net +13% RM379.4m EPS 7.3 sen
Generally in line with cons(f) RM545m as Q4 is seasonally
better
Revenue for the current period of RM3,883.2m was higher
by RM352.6m or 10.0% against corresponding period of RM3,530.6m. This was
mainly due to an increase in subscription, advertising and other revenue of
RM232.0m, RM15.0m and RM105.6m respectively. The increase in subscription
revenue was due to higher ARPU for Pay-TV residential subscribers of RM2.90
(from RM95.60 to RM98.50) and higher Pay-TV residential subscribers by 77,000
(from 3,401,900 to 3,478,900). The increase in advertising revenue was
contributed by festive seasons and FIFA World Cup.
Net profit increased by RM40.1m or 11.9% to RM376.0m
during the period. The increase was mainly due to an increase in EBITDA of
RM128.0m and lower net finance costs of RM8.7m. The increase was offset by
higher depreciation of set-top boxes of RM35.1m, higher amortisation of
software of RM14.8m and higher tax expenses of RM36.9m.
The Board of Directors has declared a third interim
single-tier dividend of 2.25 sen per ordinary share in respect of the financial
year ending 31 January 2015, to be paid on 12 January 2015. The ex date for the
dividend is 24 December 2014.
Astro offers good visibility of sustaining mid-teens
operating profit growth over the next 3 years but in view of its
outperformance, we advocate a BOW.
6) Market: crude oil & window dressing are the main
factors dictating current market directions.
