Retain BUY and GGM-TP of RM6.45, based on 0.99x 2020 P/B with assumptions of 9.6% ROE, 9.7% COE, and 3.0% LTG. This is largely in line to its 5-year average of 0.90x and the sector’s 1.00x. In our opinion, the valuation is fair, seeing RHB’s current ROE generation is similar to its 5-year mean and sector average.

MOT confirms merger between MAVCOM and CAAM; MAVCOM’s function to be transferred to CAAM
Objective of rationalization is to increase operational efficiency and optimize human resources
RAB framework may be put on the back burner but we still believe such framework to be essential in Malaysia
Profitability wise, MAHB’s earnings still expected to grow by +9.3%yoy in FY20 with the absence of a RAB framework
Earnings estimates unchanged as it did not impute the RAB framework scenario
Maintain BUY with a revised TP of RM9.10 per share

Maintain HOLD on Tenaga with unchanged TP of RM13.50 based on DCFE valuation.

BUY TP of RM4.15 implying 42x forward PER. We continue to like DIALOG for: (i) its solid track record of earnings delivery, (ii) its defensive earnings from its tank terminal businesses, and (iii) Pengerang Phase 3 acting as a main growth catalyst driver over the longer-term.

Following the earnings revision and after rolling over our valuation base to FY21F (YE April), we trim our TP slightly to RM2.70/share (from RM2.85/share previously) though our BUY call on BAuto remains intact. From a valuation standpoint, BAuto is cheap at just 10x FY21F earnings while dividend yield of 8% is attractive.

“Some of the projects that we are doing, we actually got the green light from the chairman [of the European MNC]. He is very impressed by our capability and he likes the quick response from us,” Thoo says proudly.

However, he acknowledges that Notion VTec, which just started venturing into the EMS space about 18 months ago, is still relatively new in this supply chain.

Weak timber and plantation segments continue to drag the performance of Sarawakian players WTK Holdings Bhd (WTK) and Jaya Tiasa Holdings Bhd (Jaya Tiasa).

This comes as Jaya Tiasa reported a revenue of RM637.7 million for its full financial year 2019 (FY19) – down by some 24.2 per cent year on year (y-o-y), while WTK reported a decline in its revenue for its first six months of FY19 (6MFY19) by 17.4 per cent y-o-y to RM322.2 million.

LFE Corp Bhd has secured four contracts with a combined value of RM34.5 million to provide electrical, fire protection, and hydraulic services for a service apartment project in Damansara, Selangor.

In its filing with Bursa Malaysia today LFE said the contract tenure spans 26 months from Sept 23, 2019 to Nov 22, 2021.

LFE said the electrical air-conditioning, mechanical and ventilation (ACMV) services portion is worth RM2.99 million, while the fire protection services are worth RM5.8 million, hydraulic services are worth RM8.47 million, and the electrical high tension (HT), low voltage (LV) and extra low voltage (ELV) services are worth RM17.25 million.

Publishers Pelangi Publishing Group Bhd and Sasbadi Holdings Bhd have won contracts worth a combined RM1.16 million from the Ministry of Education (MoE).

Jawatankuasa Perunding Peneroka (JKPP) mewakili lebih dua juta warga Felda seluruh negara sepakat menyatakan bantahan terhadap usaha pihak ketiga yang didakwa mahu mengambil alih pegangan saham majoriti dalam Felda Global Venture Holding Bhd (FGV).

OSK Ventures International Posts Qtrly Net Loss Of 9.1 Mln RGT

Sbc Corporation Bhd Posts QTRLY Revenue Of 42.2 Mln RGT; QTRLY Net Profit Of 10.9 Mln RGT

* PINEHILL PACIFIC BHD - QTRLY NET PROFIT 107.3 MILLION RGT

* PINEHILL PACIFIC BHD - QTRLY REVENUE 1.2 MILLION RGT

* PINEHILL PACIFIC BHD- YEAR AGO QTRLY NET LOSS 7.1 MILLION RGT

* PINEHILL PACIFIC BHD- YEAR AGO QTRLY REVENUE 5.3 MILLION RGT

Solarvest Holdings Bhd said today its initial public offering's (IPO) Malaysian public portion was oversubscribed by about 35 times after 10,205 applications for 708.32 million new shares were received for the 19.53 million new shares allocated.

Solar-photovoltaic specialist Solarvest's IPO for its Bursa Malaysia ACE Market listing involves a public issue of 98.83 million new shares at 35 sen each to raise RM34.59 million for the company.

Celcom, MRCB collaborate to bring 5G connectivity to new development

Core net profit fell 10.5% quarter-on-quarter (q-o-q) from RM24 million for the second quarter of financial year 2019 (2QFY19) to RM21.5 million for 3QFY19 mainly due to higher admin cost, which rose from RM11.6 million in 2QFY19 to RM15.5 million in 3QFY19. The group attributed the increase in admin cost to increases in staff’s incentives and remuneration expenses. We expect admin cost to fall back to the RM12 million level in 4QFY19. In addition, the group posted a tax income for 3QFY19 due to recovery in tax paid in the first half of 2019 (1H19).

MBM Resources Bhd’s net profit rose 46% year-on-year (YoY) to RM55.76 million in the third quarter ended Sept 30, 2019 (3Q19), supported by higher revenue recorded during the period.

The automotive group’s revenue increased 11.6% YoY to RM515.32 million in 3Q19, helped by higher contribution from its motor trading segment.

Revenue from the group’s motor trading segment climbed 12.3% YoY or RM51.2 million to RM468.5 million during the quarter.

Eye on AI in MY

Malaysia’s AI promise is a proposed US$1 billion AI Park that Prime Minister Tun Dr Mahathir Mohamad finalised on a recent visit to China. The park is a partnership between Malaysia-based G3 Global Bhd and Chinese firms SenseTime Group and China Harbour Engineering Company. The initiative will focus on AI apps in computer vision, speech recognition and natural language processing. Details on the park’s location are being worked out.

ELK-Desa Resources Bhd net profit for the second quarter ended Sept 30, 2019 rose 11.6% to RM9.62 million from RM8.62 million a year earlier, due to the improved performance in its hire purchase portfolio for the quarter under review.

In a filing to the stock exchange Nov 19, the firm said revenue for the quarter rose to RM36.62 million from RM30.99 million previously.

Earnings per share was 3.24 sen versus 2.94 sen earlier.

ELK-Desa declared an interim dividend of 3.50 sen per share for the financial year ending March 31, 2020 to be paid on Jan 15, 2020.

Three-A Resources Bhd (3A) reported an improved second quarter of financial year ending 2019 (2QFY19) net profit, up by 18.6% year-on-year (y-o-y) to RM6.3 million. Cumulative first half of FY19 (1HFY19) net profit of RM13.7 million improved by 19% y-o-y. It was below our expectations at 37% of full-year estimates, however, this coming largely due to an underestimation of operating expenses and effective tax rates. We trim our earnings forecast for financial year ending 2019 forecasts to financial year ending 2021 forecasts (FY19F-FY21F) by 8.6%-9.7% to account for these accordingly. Nevertheless, we continue to remain optimistic about Three-A’s long-term prospects due to: i) lower tapioca prices and the relatively resilient food and beverage industry despite slower economic growth; iii) management’s continuous efficiency initiatives and cost-optimisation plans to increase productivity; and iv) healthy balance sheet with a net cash position.

SEG International Bhd Records Highest Profit Attributable to Shareholders in 5 Years

Dayang Enterprise Holdings Bhd (DEHB) has completed its issuance of RM682.5 million in nominal value of Sukuk Murabahah in two tranches.

“Tranche 1 Sukuk Murabahah of RM455.0 million is secured by a list of specified securities while Tranche 2 Sukuk Murabahah of RM227.5 million is unsecured but is guaranteed by Danajamin Nasional Bhd,” it said in a filing with Bursa Malaysia today.

Top Glove Corporation Bhd (Top Glove) is expected to record improvements in its performance starting from the fourth quarter of 2019 (4Q19) onwards.

“We believe that Malaysian manufacturers will start gaining market share in the coming months as the 15 per cent tariff on Chinese gloves was implemented since September 2019.

For the fourth quarter ended Dec 31, 2018 (4QFY18), net rental income rose 5.9% to RM24.36 million versus RM23.01 million for the previous year on higher contributions from its Australian segment.

Quarterly net profit rose 16% to RM44.05 million from RM37.98 million previously mainly on higher fair value gains. Revenue rose 4.5% to RM25.9 million from RM24.78 million a year ago. For the full year, net rental income rose 3.7% to RM96.61 million versus RM93.21 million previously. FY18 net profit came in 8% higher at RM91.37 million versus RM84.65 million, while revenue rose 3% to RM102.65 million from RM99.65 million.

G3 to collaborate with major Taiwan-based company to develop graphene-enhanced polyetheretherketone-based products

Sime Darby Property Bhd, S P Setia Bhd and Alliance Bank Malaysia Bhd will be deleted from the MSCI Global Standard Indexes' MSCI Malaysia Index, following MSCI Inc's latest semi-annual index review. The changes in constituents for the MSCI Global Standard Indexes will take place on Nov 26.

We had earlier forecast a 30% revenue growth for Kawan Food Bhd for the financial year ending 2019 (FY19), mainly driven by the launch of new major bread products in the first half of 2019, a strong US dollar against the ringgit, and an organic growth in export markets

Maintain buy with a higher fair value (FV) of RM2.42: Our FV for Power Root Bhd is based on an unchanged price-earnings (PE) ratio of 18 times financial year 2021 forecast (FY21F) earnings per share, in line with OldTown Bhd’s two-year average forward PE. We have increased our earnings forecasts for FY20, FY21 and FY22 by 6.7%, 10.3% and 6.6% respectively as we expect better sales growth and margins for the group. We still like Power Root for its strong earnings recovery underpinned by the streamlining of costs and growth in export sales, its scarcity premium as Power Root is the closest to a pure play in the segment and an attractive estimated dividend yields of 4.5% to 5.9% from FY20 to FY22.

Caring Pharmacy Group Bhd reported a net profit of RM4.18 million for its first quarter ended Aug 31, 2019 a 2.3% increase from RM4.09 million in the same quarter of the previous year, attributed to the sales generated from the establishment of 16 new outlets.

Its revenue rose 8.9% to RM163.26 million from RM149.97 million.

Dayang Enterprise Holdings Bhd has established an eight-year sukuk murabahah programme of up to RM682.5 million in nominal value.

the global Sustainable Palm Oil market has gained substantial momentum over the past few years

Maintain outperform with a higher target price (TP) of RM5.71: It is pleasing that Mega First Corp Bhd’s (MFCB) Don Sahong Hydropower Project in Laos is almost complete pending testing of all four turbines and will be ready for operations ahead of the commencement of its power purchase agreement (PPA) on Jan 1, 2020 under a “take or pay” scheme. Meanwhile, MFCB’s third quarter of financial year 2019 results are expected to be released on Nov 18 with expectations of smaller construction earnings recognition given that the hydropower plant was in its tail-end stages. We raise our sum-of-the-parts-based TP to RM5.71 after removing a 10% discount attached to our valuation model with the dissipation of construction risks as well as the lower beta attached given the plant’s completion ahead of the timeline.

Carlsberg advance on being spared excise duties on beer

Milo of the future: Nestle Malaysia’s Global Centre of Excellence plugs into Industry 4.0 trends

Shares in My EG Services Bhd (MyEG) rose 1.83% at mid-morning today after the firm said its Indonesian unit is purchasing a 40% stake in PT Cartenz Inti Utama (PT CIU) for US$10 million or approximately RM41.1 million, as the e-government services provider seeks to further expand its business outside of Malaysia.

AmInvestment maintains 'buy' call on Bumi Armada, values shares at 54 sen

Tenaga Nasional (TNB) plans to install up to 100 new charging stations for electric (and plug-in hybrid vehicles), which will have an investment value of RM1.5 million, as reported by Bernama.

The company aims to deploys these chargers by the end of the year, and will do so through its wholly-owned subsidiary TNB Energy Services (TNBES) as well as partner Malaysian Green Technology Corporation (MGTC).

Given the expected income performance, the management is comfortable that it will be able to hit its ROE target for FY19 of 9% to 9.5%. We understand that there could potentially be some one-off increase in operating expenses, but this will be mitigated by the lower credit cost. We are expecting an ROE of 9.3%.

Considering the full three-month impact from May 2019’s overnight policy rate (OPR) cut, second quarter of FY20’s (2QFY20) NIM would be affected the most. However, in the following quarter, it should recover, since 66% of its non-Casa (current account and savings account) deposits are due for maturity within six months (calculated from March 2019 onwards) and will be repriced downwards.

Daibochi posts record quarterly revenue of RM123.27m

The boost also came from the "continuous premiumisation of [its] portfolio in both Malaysia and Singapore", it said in a stock exchange filing today. Revenue climbed 15.7% year-on-year (y-o-y) to RM480.52 million from RM415.45 million.

The stronger quarterly earnings helped lift its net profit for the first six months of FY19 (1HFY19) by 5.6% y-o-y to RM152.86 million from RM144.73 million, as revenue grew 18.3% to RM1.14 billion from RM963.92 million.

Malaysia was the largest contributor of passengers carried in absolute terms in 3QFY19, with an increase of 900,000 passengers

builders rise ahead of Budget 2020.tp 90sen.

Low-Cost Airline is set to Experience Revolutionary Growth by 2025 | AirAsia

AirAsia has been voted as a top employer in the e-commerce and shared services category at the recent Graduates Choice Awards 2019.

KNM unit gets US$12.31m purchase order from Petrofac Emirates

Bumi Armada to receive RM314m in financing

Of the 22 analysts covering the bank, four have buy calls while 13 have a hold call and five sell calls. The 12-month target price was RM24.49.