affin hwang

 
 

Malaysia’s auto industry off on a positive start

KUCHING: Malaysia’s automotive industry is off on a positive start this year, led by strong numbers recorded by national carmakers. Analysts expect the industry to continue this strong momentum, underpinned by healthy demand and favourable foreign exchange (forex). According to the research arm of Affin Hwang Investment Bank Bhd (AffinHwang Capital), the automotive industry’s January […]


Affin Hwang AM appoints new chairman

PETALING JAYA: Affin Hwang Asset Management Bhd (Affin Hwang AM) today announced the appointment of Raja Tan Sri Datuk Seri Aman Raja Haji Ahmad (pix) as its new chairman, effective Feb 19, 2019.

In a statement today, Affin Hwang AM said that Aman had held various positions in the Maybank Group from 1974 to 1985 prior to joining Affin Bank Bhd as an executive director.

In 1992, he joined Perbadanan Usahawan Nasional Bhd as its CEO before he was re-appointed as the CEO of Affin Bank in 1995.

He had served as a member of the National Pension Fund’s (KWAP) Investment Panel and is currently the chairman of Lembaga Tabung Angkatan Tentera’s (LTAT) Investment Committee.

He had also served as a member of the Malaysian Government’s Working Group Policy of the Special Task Force to Facilitate Business (Pemudah) for a period of ten years from 2007 to 2017.

Aman is also the chairman of Ahmad Zaki Resources Bhd, and sits on the Board of Affin Hwang Investment Bank Bhd as well as Tomei Consolidated Bhd.

A graduate from Universiti Malaya, Aman is a Fellow of the Institute of Chartered Accountants in England and Wales, member of the Malaysian Institute of Certified Public Accountants and the Malaysian Institute of Accountants as well as a Fellow of the Institute of Bankers Malaysia.


Corporate earnings unlikely to excite stock market: Affin Hwang AM

KUALA LUMPUR: Corporate earnings delivery will not significantly influence the Malaysian capital market this year as catalysts are expected to come from the external front, according to Affin Hwang Asset Management Bhd (Affin Hwang AM).

Its managing director, Teng Chee Wai, said for 2019, the company expects a single-digit upside in the FBM KLCI at around 8% to 10%, partly buoyed by recovery in global growth as the economic cycle matures.

“2019 is a year that the markets are going to respond more towards macro policies rather than earnings. And I do not see price-earnings expansion to be one big factor this year for the market because there is a very little growth,” he told a press conference after presenting Affin Hwang AM market outlook and company briefing here today.

“With 5% in (consensus) earnings (estimates) growth, I don’t expect this year to be a double-digit year (for the FBM KLCI),” he said, noting downward revisions in earnings are likely if there is slowdown in global economic activities.

Asked whether 2019 is a good year to invest in stocks, Teng warned of risks and uncertainties in the market such as the ongoing trade dispute between the United States and China.

“There is no such thing as the best time to invest … you must be mindful of the risks, and asset allocation is the way forward,” he added.

Nevertheless, Teng said given the positive development in the US-China trade talks, coupled with changes in policy by the Federal Reserve, he is fairly confident that the market will improve at some point in the second half of the year.

On Affin Hwang AM’s outlook, Teng said the fund manager is confident that it will surpass the RM50 billion mark in assets under administration (AUA) this year and reach the RM52 billion level.

He said the firm’s AUA grew 0.84% or RM400 million to RM47.8 billion as at end of 2018 from RM47.4 billion in late 2017.

Earlier at the press conference, Affin Hwang AM’s Islamic entity, Aiiman Asset Management Sdn Bhd, launched its maiden fund called Aiiman Asia Pacific (ex-Japan) Dividend Fund, which marks its foray into the retail market.

Aiiman managing director Akmal Hassan said the fund is suitable for retail investors who want regular income distribution and capital gains, and have a medium- to long-term investment horizon and moderate risk tolerance.

The fund will invest a minimum of 70% of the fund’s net asset value (NAV) in syariah-compliant equities and a maximum of 30% of its NAV in sukuk, syariah-compliant money market instruments and/or deposits.

The base currency of the fund is in ringgit with a minimum investment amount of RM1,000.


All-over optimism for Serba Dinamik’s maiden 2019 contracts

KUCHING: Analysts across the board gave two thumbs up for Serba Dinamik Holdings Bhd (Serba Dinamik) catching its first batch of contract wins in 2019 totalling US$110 million (RM448 million). The announced values consist only of the international contracts – United Arab Emiraes, Uzbekistan and Qatar – as the Malaysian contracts are all call-out in […]


E&O loses RM318m in market cap on cash call news

PETALING JAYA: Investors reacted negatively towards Eastern & Oriental Bhd’s (E&O) proposed fund raising exercise of up to RM550.3 million with its share price tumbling 24 sen or 22.02% to a multi-year low of 85 sen today.

The heavy selling pressure led to RM318 million of its market capitalisation being wiped off.

It was the top fourth loser on Bursa Malaysia today on 36.7 million shares done.

On Monday, E&O announced a proposed fund raising exercise which would raise proceeds of RM250 million to RM550.3 million, to fund its Seri Tanjung Pinang (STP) Phase 2 project in Penang and repay bank borrowings.

“Although the company seems to have identified a taker for the placement shares, we think investor sentiment on E&O may turn cautious given the magnitude of the equity call,” RHB Research said in its report today.

The research house, however, noted that the need for financing is understandable, based on the funding requirement for the reclamation and infrastructure capital expenditure on STP 2A, 2B and 2C, as well as working capital to kick-start new high-rise projects such as The Conlay (GDV: RM900 million), which is slated for launch at the end of 2019, and The Peak (GDV: RM280 million) in 1H 2020.

“We believe that as a result of tight cash flow, slow high-end property sales and weak market sentiment, the maiden launch of STP 2A’s Plot 14 has been delayed until 1H 2020,” it added.

The total proceeds of around RM350 million to RM400 million from the fund raising exercise would be about 24-28% of the stock’s current market cap. After factoring in the impact from the placement and rights issue, RHB Research reduced its target price to RM1 from RM1.24 previously.

It maintained E&O’s net profit estimates but reduced its earnings per share (EPS) forecasts due to the expected dilution from the placement and rights issue.

PublicInvest Research maintained its “neutral” call on E&O but reduced its target price to RM1 from RM1.30 previously.

“This comes as a negative surprise as we had believed earlier that the group would raise funds by disposing non-strategic assets and/or get more strategic partners for its STP Phase 2 development. Based on illustrative issue price of RM1.12, our RNAV (revalued net asset value) could be diluted from RM4 per share to RM2.80 to RM3.30,” it said.

Meanwhile, Affin Hwang Capital, which maintained its “buy” call on E&O with RM1.55 target price, believes the long-term prospects for the group remain good, despite the short to medium term impact of the fund raising exercise on investor sentiment.

“We believe the overhang from the equity issuance will dampen sentiment on the stock in the short to medium term, but the long-term prospects for E&O remains good with the scheduled completion of 253-acre STP 2A by September 2019,” it said.

“We gather that the entrepreneurs and substantial shareholders Datuk Seri Tham Ka Hon (owns 20.6% stake) and Datuk Tee Eng Ho/Tee Eng Seng (owns 15.2%) will likely undertake to subscribe for their rights issue entitlement. This will show the entrepreneurs’ commitment and shore up support for the proposed equity issuances,” it added.


Uptick in Malaysia’s banking sector scorecard for 2018

  KUCHING: Malaysia’s banking sector ended 2018 with a slight uptick in its figures, recording 5.6 per cent year on year (y-o-y) growth while expanding by 0.6 per cent month on month (m-o-m). The annual growth was underpinned by sectors such as manufacturing, retail, business services, construction and households – specifically residential properties, personal use […]


FBM KLCI to retest 1,700-point level next week

KUALA LUMPUR: Trading on Bursa Malaysia is expected to be reinvigorated next week with the market moving in a tight range as most investors flock back from the Chinese New Year celebration, analysts said.

Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) had been struggling to pierce its immediate resistance of 1,700 points over the last few weeks.

“External developments continue to take centre stage. Issues surrounding the trade negotiations between the US and China has always been the source of market instability,“ he told Bernama.

If latest news are any indication, the resolution of trade negotiations will still be a long way to go before the US struck a trade deal with China, according to the National Economic Council Director Larry Kudlow.

Additionally, Mohd Afzanizam said the meeting between US President Donald Trump and Chinese President Xi Jinping might not happen before the March 1 trade deadline.

Despite this, Mohd Afzanizam said foreign investors turned net buyers on Feb 4 and 7 snapping up RM138.6 million worth of stocks while the ringgit appreciated to 4.067 against the US dollar at the time of writing.

“Against such backdrop, we could expect the FBM KLCI to continue remaining in a tight range next week,“ said Mohd Afzanizam.

Additionally, Malaysia’s 2018 fourth-quarter (Q4 2018) gross domestic product numbers would be announced on February 14.

“Perhaps, investors would also want to assess the resilience of the Malaysian economy.

“This is especially true in the context of weak business and consumer sentiment as indicated by the Malaysian Institute of Economic Research’s survey recently,“ the chief economist said.

The Business Condition Index and Consumer Sentiment Index fell to 95.3 points and 96.8 points in Q4 2018 from 108.8 points and 107.5 points in the previous quarter, respectively.

Affin Hwang Capital Asset Management managing director Teng Chee Wai remained optimistic on the US-China trade negotiations as the backdrop of the global economy was actually very strong, while the vision of a downtrend in local corporate earnings is still an ongoing process.

“Putting the two together, this year will probably be a better year than last year from the equity market standpoint,” said Teng.

On a Friday-to-Thursday basis, the benchmark FBM KLCI settled 2.99 points higher at 1,686.52.

The market was closed on Tuesday and Wednesday for the Chinese New Year.

The FBM Emas Index was 64.9 points higher at 11,725.52, the FBMT 100 Index increased 56.33 points to 11,601.54 and the FBM Emas Syariah Index improved 40.42 points to 11,593.03.

The FBM 70 gained 215.69 points to 14,032.9 and the FBM Ace Index added 153.12 points to 4,555.22.

Sector-wise, the Financial Services Index rose 127.14 points to 17,642.11, the Plantation Index increased 19.36 points to 7,299.6, and the Industrial Products and Services Index inched up 0.86 of-a-point to 161.97.

On a Friday-to-Thursday basis, weekly turnover dwindled to 4.94 billion units worth RM3.8 billion against 8.77 billion units worth RM8.13 billion.

Main Market volume shrank to 3.77 billion units valued at RM3.57 billion versus 6.32 billion units valued at RM7.66 billion.

Warrants turnover declined to 690.66 million units worth RM149.03 million from 1.38 billion units worth RM301.90 million.

The ACE Market volume decreased to 483.1 million shares valued at RM83.25 million against 1.05 billion shares valued at RM152.46 million. — Bernama


International investors confident in Malaysia’s economic potential

KUALA LUMPUR: International investors are confident in Malaysia’s economic potential as well as the government’s ability to drive the economy forward. Finance Minister Lim Guan Eng said Malaysia remained an attractive investment destination with investors, especially with the government’s commitment to the competency, accountability and transparency principles under Prime Minister Tun Dr Mahathir Mohamad’s leadership. […]


Westports FY18 in line with expectations, analysts ups forecast

KUCHING: Westports Holdings Bhd’s (Westports) financial year 2018 (FY18) results were within expectations, leading analysts to raise their earnings forecast for the port operator. MIDF Amanah Investment Bank Bhd’s research team (MIDF Research) in a report, pointed out that Westports’ fourth quarter of FY18 (4QFY18) was the best performing quarter in FY18 with normalised earnings […]


Revving up for a better ride in 2019

After years of tepid development, Malaysia’s automotive industry has finally shifted into high gear with the launch of new vehicles under local brands and improved total industry volume, driven by heightened demand and a recovery in consumer sentiments. The automotive industry, while small, contributes about RM40 billion or four per cent to Malaysia’s gross domestic […]