CIMB Research raises Berjaya Food target cost to RM1.67

KUALA LUMPUR: CIMB Equities Research has raised its objective cost for Berjaya Food

to RM1.67 from RM1.38 as it moves over its valuation base year to CY19F. Its last exchanged cost was RM1.53. 

It said on Monday BFood detailed center net benefit of RM5.3mil in the main quarter finished July 31, 2017 (1QFY4/18), which was in line at 23% of its and 22% of market's entire year estimates. 

"The potential transfer of its Kenny Rogers Roasters (KRR) Indonesia operations may prompt a profit elevate of c.10%/12% for FY18/19F," it said. 

It updated the stock to a Hold and included it would turn more positive on the stock in the event that it was fruitful in arranging KRR Indonesian resources as it will support future income. 

BFood revealed that 1QFY4/18 turnover expanded 9.2% on-year to RM154.4mil while center net income rose 6.7% on-year to RM5.3mil. 

Deals development was generally because of a superior appearing from Starbucks Malaysia (+ three net new stores year-to-date) and KRR Malaysia which balance the shortcoming from KRR Indonesia and Jollibean. 

"This prompted an on-year change in the gathering's income. The gathering likewise pronounced a first interval DPS of one sen (versus 1QFY17: 0.5 sen), which was in accordance with desires," it said. 

CIMB Research said consecutively, the organization's turnover enhanced 2% on-quarter because of better execution from its Malaysia and Indonesia KRR operations and additionally from Starbucks. 

Pre-charge benefit jumped over 100% on-quarter to RM8.8mil on the back of higher income and a low base impact where 4Q was beforehand affected by a higher-than-normal record of settled resources on the back of the conclusion of non-productive KRR stores in Indonesia and Malaysia. 

The gathering shut two KRR Indonesia stores, conveying absolute store tally to 14. 

Same-store-deals development (SSSG) for Starbucks stayed sound at +2.2% on-year while its KRR operations in both Malaysia and Indonesia revealed SSSG of +1.5% and - 12% on-year, individually. 

"The gathering will proceed with its procedure of opening 25-30 new stores a year, which should support its profit going ahead. 

"With respect to its KRR Malaysia operations, it will keep on being particular in its new store openings and will keep on introducing different activities to pivot the operations in FY18. 

"We gauge if KRR Indonesia is effectively stripped, this could spell a potential lift of 10%/12% to our FY18/19F EPS (notwithstanding any benefits)," said CIMB Research. 

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Although Malayan Banking Bhd (Maybank) and CIMB Group

PETALING JAYA: Although Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd's profit by means of their auxiliaries enhanced in Indonesia a year ago there is still a worry that benefit quality in the republic may affect income this year. 

Experts revealed to StarBiz that it was still somewhat right on time to infer that the most exceedingly terrible is over for the two keeping money gatherings to enlist more grounded income this year as resource quality could drag net premium edges (NIMs) which may mark profit. 

Maybank and CIMB Group Holdings by means of PT Bank Maybank Indonesia Tbk and PT Bank CIMB Niaga Tbk indicated enhanced in income for the most part helped by higher NIM and lower arrangements. 

AlianceDBS Research investigator Lynette Cheng concurs that worries on resource quality among Indonesian banks are not over yet and may delay till second quarter of 2017 unless total national output development gets emphatically. "We however alert that administrative weights may return to push loaning rates lower, applying weight on NIM,'' she noted. 

Maybank Indonesia posted a solid arrangement of budgetary outcomes in the money related year finished Dec 31, 2016, with profit surging 71% to a record Rp1.9 trillion or RM650.38mil. Its solid development in benefit after duty and minority intrigue (PATAMI) versus Rp1.14 trillion in FY15 was supported by sound net intrigue wage (NII) development, controlled cost administration and better provisioning for the non-performing credits (NPLs). Maybank Indonesia NII expanded by 10.8% to Rp6.6 trillion while NIM saw a 4.6% expansion. 

CIMB Niaga recorded a 387% development in solidified net benefit for the money related year finished Dec 31, 2016. CIMB Niaga's yearly benefit hopped to 2.082 trillion rupiah (RM694.6mil) - or income per share of 82.83 rupiah - from 427.9bil rupiah (RM142.8mil) in the previous year. 

This enhanced net benefit returned on the of a 6.2% year-on-year (y-o-y) increment in net intrigue salary to 12.09 trillion rupiah (RM4.0bil) and a 2% y-o-y ascend in non-intrigue pay to 4.23 trillion rupiah (RM1.4bil). 

AlianceDBS Research, which is keeping up a hold rating for CIMB and Maybank, said in a note on Tuesday both CIMB Niaga and Maybank Indonesia stay wary for 2017. 

CIMB Niaga has guided for high single digit advance development and NIM to merge to around 5%, subsequently of the move in center to better quality advances and additionally focused weights. Credit cost is relied upon to be lower y-oy, at around 200bps. 

There was no direction on profit for value (ROE) yet administration focuses towards a change from the current 6% level, it noted. In the mean time, Maybank Indonesia's direction seem more idealistic with ROE of 10-11%, advance development of 10-12%, store development of 8-10%, NIM pressure of 15-20 premise focuses (bps) and credit cost of around 130bps. 

Independently, Maybank Indonesia is wanting to embrace a rights issue of Rp1.5-2trillion in the second 50% of this current year. 

"Expecting the normal Indonesian rupiah/ringgit rate in FY16, CIMB Niaga and Maybank Indonesia's FY16 net benefit converts into roughly 19% and 10% of our CIMB and Maybank's FY16 gather income, separately,'' it noted. 

Both Maybank and CIMB will report their FY16 comes about on 23 Feb and 28 Feb, separately.

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Market takes a breather, GFM in focus

KUALA LUMPUR: Bursa Malaysia cooled off early Monday after the late keep running up in the FBM KLCI a week ago as unrefined petroleum costs slipped yet GFM Services was in concentrate on its exchanging debut on the ACE Market.  At 9.23am, the KLCI was down 0.83 of an indicate or 0.05% 1,674.66. Turnover was 231.51 million shares esteemed at RM97.40mil. There were 218 gainers, 135 failures and 211 counters unaltered. 

Kenanga Investment Research said while the quick term viewpoint of the KLCI looks ruddy now of time, we don't markdown the potential outcomes of the key list taking a sideways breather this week to kill its overbought condition. "All in, we expect an upward-inclination exchanging range inside 1,665-1,692 this week. Resistance levels are topped at 1,680 (R1)/1,692 (S2), while backings are available at 1,665 (S1) trailed by 1,657 (S2)," it said. 

Oil stopped its progress underneath US$54 a barrel as an expansion in US penetrating countered signs OPEC individuals including Saudi Arabia are adhering to arranged yield slices to balance out the market, Bloomberg reported.  At Bursa Malaysia, GFM bounced 10 sen to 48 sen with 21.95 million shares done. 

BAT fell 18 sen to RM45.12 and Nestle shed four sen to RM77.20.  With respect to manors, Genting Plantations lost 16 sen to RM10.90 and Batu Kawan was down eight sen to RM18.30 yet FGV rose seven sen to RM1.77. 

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Reference:http://www.thestar.com.my/business/business-news/2017/01/09/market-takes-a-breather-gfm-in-focus/

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KLCI regains buying support, PetChem and Tenaga boost

KUALA LUMPUR: Petronas Chemicals and Tenaga Nasional supported the FBM KLCI's recuperation at noontime at Thursday, amplifying its increases from the earlier day however the more extensive market was blended and raw petroleum costs slipped. 

At 12.30pm, the FBM KLCI was up 3.31 focuses or 0.18% to 1,633.61. Turnover was 993.37 million shares esteemed at RM502.60mil. There were 271 gainers, 330 failures and 336 counters unaltered. 

The ringgit slipped against the US dollar to 4.4843 from 4.4835 while the one-month non-deliverable forward was at 4.5050. It additionally debilitated against the Singapore dollar to 3.0940 from 3.0903. 

It moved against the pound sterling to 5.4950 from 5.4954 and was at 4.6886 against the Euro from the earlier day's end of 4.6816. 

Reuters reported China stocks turned around early misfortunes and edged higher on Thursday morning in the midst of indications of facilitating liquidity push. The CSI300 file rose 0.2% to 3,309.78 and the Shanghai Composite Index increased 0.2% to 3,109.14. 

The Hang Seng record dropped 0.1% to 21,733.26, while the Hong Kong China Enterprises Index lost 0.3% to 9,275.77. 

At Bursa Malaysia, FoundPac was among the top gainers on its posting debut on the Main Market, up a solid 13.5 sen to 67.5 sen with about 41 million shares done. 

US oil costs fell on Thursday after an industry report demonstrated a shock work in the nation's rough inventories, while Brent fates fell off early lows to exchange barely higher, Reuters reported. US light rough prospects fell 24 pennies to $53.82 and Brent shed two pennies to US$56.20. 

Petronas Chemicals rose six sen to RM6.93 and bumped the KLCI up 0.78 of a point while Petronas Gas rose two sen to RM21.30 and Petronas Dagangan was level at RM23.50. 

Sumatec was up one sen to 7.5 sen and it was the most dynamic with 112 million shares done while KNM added 1.5 sen to 35.5 sen. 

Tenaga rose eight sen to RM13.68 and pushed the KLCI up 0.74 of a point. IJM Corp increased eight sen to RM3.27. 

Among the banks, Hong Leong Bank was the top gainer, up 18 sen to RM13.26, Public Bank added two sen to RM19.70, Maybank added one sen to RM7.96 while CIMB was level at RM4.56. 

Rough palm oil for third month conveyance shed RM2 to US$3,106 per ton. IOI Corp rose six sen to RM4.41, KL Kepong added four sen to RM23.72 and PPB Group two sen higher at RM15.90. Sime Darby added four sen to RM8.12. 

Among the purchaser stocks, F&N recaptured footing and added 44 sen to RM23.30 however Nestle fell RM1.02 to RM77.48 and BAT was down 42 sen to RM42.98. 

With respect to telcos, Maxis fell the most, down eight sen to RM6.02 and Axiata shed four sen to RM4.58 however Digi rose two sen to RM4.96 and Telekom five sen hiugher at RM6.08. 

Spot gold added US$7.62 to US$1,149.29.

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