FBMKLCI
1798.85 -12.17pts (-0.67%) Volume 2.186b Value 2.364b
1) The KCLI dipped to a low of 20pts before closing just
12pts at auction as the CI faced selling pressure thruout the day following the
weaker currency and oil px weighed on the market shrugging off the strong
performance by the US overnight. Regional bourses were mixed as the SHCOMP
+0.51% and KOSPI +0.51% gained after POBC vowed to support economic growth, HSI
and ASX however fell -0.87% and 0.54% respectively on weaker global sentiments.
In the local scene, selective CONSUMER names outperformed the market today,
namely, PADINI +3.57%, BONIA +5.20%, CANONE +4.29%, OLDTOWN +1.71%. Market
breadth was negative with losers outpacing gainers by 508 : 321. Futures closed
at 1785.5 ( 14pts discount).
2) Heavyweights : TENAGA -3.09% RM14.40, PBBANK -1.17%
RM18.56, DIGI -1.71% RM6.32, SKPETRO -3.07% RM2.84, PETGAS -1.35% RM21.78, SIME
-0.62% RM9.50, FGV +5.93% RM2.50, CIMB +0.70% RM5.72
3) DBT: YOKO 53.025mil @ RM1.70 (60.864% PUC @ 5.5%
premium), XINGHE 17.93mil @ RM0.11, HHGROUP 13.86mil @ RM0.45 (6.735% PUC).
4) Situational:-
TENAGA -3.09% RM14.40 - Share price fell substantially
after reports stated that the government plans to cut power tariffs following
the decline in the feedstock prices supplied to Tenaga. The tariffs for
Peninsular Malaysia would be reduced by 2.25 sen per unit and would take effect
from March 1 to June 30.
5) WPRTS : FY12/14 Rev-9% RM1.56b Net+18% RM512.2m EPS
15.02s Div 11.25s
Results 2.4% ahead of cons RM500m, Div in line.
For 12 months yoy, although revenue was -9%, operational
revenue was actually +11%, which was mainly due to increase in container
throughput, which increased by 12% to 8.4m TEUs. PBT was +12%, normalized PBT (
after excluding reversal of provision of quit rent, management fees, IPO
expenses & write off of assets) +10%. Net increased at a faster rate of
18%, due to lower effective tax rate arising from higher investments tax
allowances from capitalization of CT7 capital expenditure. Wesport handled a
record level of 8.4m TEUs container throughput in the year +12%, 5.9m TEUs
transshipment containers +12% while 2.5m TEUs gateway containers +11.8%. Qoq,
PBT-9%, mainly attributable to write off of assets. Group proposed a second
interim dividend of 6.15s per share, bringing total div to 11.25s for the year,
which is in line with the payout ratio of 75% of PAT. Management expects
container throughput to grow between 5-10% in 2015 driven mainly by both
transshipment business as well as the import & export segment .
Trading at 22.3x FY15, valuation appears rich, but in
line with the average PE of select port operators. However, it does lead in
terms of ROE, dividend yield (3.5%), low net gearing and decent earnings CAGR
of 10%. It is also a beneficiary of a low oil price environment. All
considered, appears fully valued & could have factored in tariff hike,
which is not a done deal - Trim.
6) Market : Cautious trading likely to extend further due
to the lack of leads. Support levels seen at 1790 and 1770 points, as the
quarterly earnings reporting season unfolds.