FBMKLCI
1815.86 -2.82pts (-0.16%) Volume 1.697b Value 1.905b
1) The KLCI closed in the red today despite the stronger
US market overnight following the Fed's dovish stance to remain patient on
interest rate hikes. In the regional scene, bourses were mixed weighed by
SHCOMP -0.56% that fell even after HSBC flash PMI beat consensus, NIKKEI -0.10%
remained flat, HSI +0.10% and ASX +0.30%. In the local scene, INDUSTRIAL +1.13% index outperformed boosted by PETGAS
+3.13%, MISC +2.23%, SIME +0.21% while the PLANTATIONS index-0.89% lost the
most ground today dragged by heavyweights FGV -12.92%, GENP -1.16%,
IOICORP-1.16%. Market breadth was negative today with losers beating gainers by
427 : 379. Futures closed at 1810.5 (5pts discount).
2) Heavyweights : FGV-12.92% -RM2.56, CIMB RM5.90 -1.99%
, SKPETRO -4.42% RM2.81, YTL -4.00% RM1.68, GENTING -1.77% RM8.87, PETGAS
+3.13% RM23.72, TENAGA +0.84% RM14.38, MISC +2.23% RM8.23.
3) DBT: EAH 20mil @ RM0.125 (2.35% PUC), INARI 3mil @
RM2.92, SIGN 2mil @ RM1.97, PENERGY 1mil @ RM1.37.
4) Situational:-
MPAY +9.30% RM0.235 - Managepay Systems Bhd (Mpay) has
received approval from Bank Negara Malaysia to issue electronic money (e-money)
via the proposed online wallet (Mpay Balance) and prepaid card (Mpay
MasterCard). In a filing with the stock exchange, Mpay said Mpay Balance and
Mpay MasterCard comes with a respective wallet limit of RM10,000 per account
holder
PESTECH+2.1% RM4.85 - Pestech International's (Pestech),
wholly owned subsidiary, Pestech
SB, has secured a
MYR28.8m job from N.U.R.
Distribution SB (NUR)
for the engineering,
procurement and
construction, commissioning and
testing work package
of the West
132kV substation project
in Kulim, Kedah.
The project, which commenced on 23 Feb
2015, is expected
by management to be
completed within 15 months.
5) AXIATA : FY12/14 Rev +2% RM18.7b Net-8% RM2.35b EPS
27.4s Div 22s
Core
earnings trails cons RM2.45b by 9%, Dividend in line.
For 12 months yoy, higher revenue was driven by
Indonesia, Bangladesh, Cambodia and Sri Lanka operations (+4.4% at constant
currency). Operating cost for the group +5.5% mainly due to Axis integration in
Indonesia. As a result, EBITDA -3.7% and EBITDA margin -2.2% to 37.4%. PAT
-14.4% due to lower contribution from Malaysia & Indonesia. The group also
registered a one-off gain of RM117m from disposal of a 24% stake in SAMART
i-Mobile in Thailand in Q3. Qoq, revenue +3.4% due to increase in revenue of
all key OpCos. Operating cost +3.2% mainly due to higher operating costs in
Bangladesh . EBITDA +4% and margin registered marginal increase of 0.2% to
36.7%. Group's year end cash position stands at RM5.1b and declared dividend
payout of 22s, a 84% payout. Ahead in 2015, Axiata will be looking to regain
momentum at Celcom and XL ( XL is now able to aggressively compete after the
completion of Axis integration whilst Celcom will be better placed , post IT
transformation, to launch better products and better services. Group guiding
2015 Revenue +4% and EBITDA+4%, CAPEX RM4.8bn.
Investors are looking ahead to FY15 given the significant
distortions in FY14 arising from the Axis acquisition. However, earnings are
expected to be subdued in Malaysia whilst there is also a risk that XL's
turnaround may take longer to materialize. Meanwhile, escalated capex spend in
both markets, coupled with XL's stretched balance sheet will most likely limit
the group's ability to enhance dividend payouts - Trim.
DAYANG : FY12/14 Rev+56% RM876.9m Net+20% RM178.6m EPS
21.3s Div 7s
Results 6% below
cons RM191m, dividend behind cons 8.6s
For 12 months yoy, higher revenue was mainly due to
higher revenue from the new hook up and commissioning contracts. PBT (
excluding reclassification of FV reserve) +53%, due to almost similar profit
margin contribution from work orders performed as compared to last year.
Associate Perdana Petroluem Bhd contributed about 10% to PBT. The
reclassification of FV reserve of RM32.8m is occasioned by the remeasurement of
the investment in Perdana from available for sale to an equity accounted
associate. Qoq, revenue was +2% while PBT -47%. Lower PBT was in view of the
fact that work orders in the current quarter have a lower profit margin due to
inclement weather in the last 2 months of 2014. Ahead, group anticipates a challenging
operating environment in 2015. Nevertheless, has call out contracts estimated
at about RM4b to last until 2018 and an outstanding tender book of RM800m.- We
continue to like Dayang as it is the premier local oil and gas services player
and has an excellent track record, with strong Balance Sheet ( net gearing
lower than 10%).It's major shareholders ( Naim Holdings) should sustain its
position as a primary beneficiary for Petronas O&G contract flows in
Sarawak- Accumulate
6) Market : With the overnight cheer from the US that the
Fed would be patient in raising its interest rate, we reckon the market bias
will remain positive although key indicators are entering into their respective
overbought territories.Trading range expected to remain between 1780-1830
points.