Regional News Update

04 November 2019

By Raymond Choo Ping Khoon / pkchoo@kenanga.com.my

Research Highlights Currency Exchange

Currency Today 1-Week
Chg (%)
SINGAPORE NEWS HIGHLIGHTS USD/IDR 14,039.0 0.01%
USD/SGD 1.36 -0.40%
 Singapore bank lending dips 0.06% in September: MAS preliminary data
USD/THB 30.18 0.07%
 Olam completes SGD450.4m acquisition of Nigeria flour and pasta maker
Singapore
INDONESIA NEWS HIGHLIGHTS Indices Today 1-Week
Chg (%)
 Indonesian bank's stock rises on back of strict cost control FSSTI 3,229.4 1.38%

 Indonesian nickel miners to stop ore exports immediately FSTFN 1,021.53 1.40%
FSTCG 485.12 0.77%
THAILAND NEWS HIGHLIGHTS FSTTC 827.5 1.16%
 Bangkok Bank, PTT lead Thai shares higher
Indonesia
 Suvit calls for Thailand to embrace 5G fast, or lag behind rivals Indices Today 1-Week
Chg (%)
JCI 6,207.2 -0.72%
JAKFIN 1,282.9 -0.13%
JAKAGRI 1,369.3 0.80%
JAKINFR 1,160.7 -4.75%

Thailand
Indices Today 1-Week
Chg (%)
SET 1,592.5 -0.05%
SETBANK 429.6 2.19%
SETAGRI 153.9 -1.00%
SETCOMUN 172.8 -2.59%

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 Regional News Update
04 November 2019

Singapore’s Corporate News

 Singapore bank lending dips 0.06% in September: MAS
preliminary data
Bank lending in Singapore slipped by 0.06% in September from a month
ago, as a fall in business loans more than offset a rise in consumer
loans, preliminary data from the Monetary Authority of Singapore (MAS)
showed on Thursday (Oct 31). Loans through the domestic banking unit -
which captures lending in all currencies, but reflects mainly Singapore-
dollar lending - stood at SGD684.5b in September, down from
SGD684.9b a month ago. From a year ago, total lending rose 2.2%,
unchanged from the 2.2% year-on-year gain posted in August. (Source:
The Straits Times)
 Olam completes $450.4m acquisition of Nigeria flour and
pasta maker
Agri and food giant Olam International has completed its acquisition of
Nigerian flour and pasta manufacturer Dangote Flour Mills for
NGN120.0b (SGD450.4m). This was after it had obtained approval from
Dangote shareholders for the scheme arrangement, which sees Olam
subsidiary Crown Flour Mills acquiring all of Dangote's shares. Trading in
Dangote shares have been placed on full suspension and the company
will consequently be delisted from the Nigerian stock exchange's main
board. (Source: The Straits Times)

Indonesia’s Corporate News

 Indonesian bank's stock rises on back of strict cost control
Weeks after Mr Armand Wahyudi Hartono became vice-president
director of Indonesia's largest non-state bank, he noticed how the staff
were leaving behind half-empty glasses of water after work. The next
morning, he restricted the amount of drinking water available at the
headquarters of Bank Central Asia (BCA). Such stringent cost control is
just an example of how the lender has managed to pare expenses and
boost efficiency, wooing investors along the way. They have rewarded
the company since it went public in 2000, pushing its stock up every year
but one - 2008, when the global financial crisis hit. (Source: The Straits
Times)
 Indonesian nickel miners to stop ore exports immediately
Indonesia’s nickel miners agreed on Monday to stop nickel ore exports
immediately, the country’s investment agency Chief Bahlil Lahadalia
said, after Jakarta last month brought forward a ban on shipments to
January 2020 from 2022. Exports due to be shipped from Indonesia, the
world’s biggest nickel ore producer, will be bought by local smelter
operators at an international price level, Lahadalia said. “This agreement
was carried out not on the basis of a letter from the government or
technical ministry, but a joint agreement,” Lahadalia said. “Where the
agreement is carried out by the nickel association with us the
government.” (Source: Reuters)

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 Regional News Update
04 November 2019

Thailand’s Corporate News

 Bangkok Bank, PTT lead Thai shares higher
The Thai benchmark advanced 0.7% to lead the pack in the region,
underpinned by gains in financial and energy stocks. Bangkok Bank Plc
scaled 6.0% while oil and gas major PTT Exploration and Production Plc
rose 3.4% after posting a jump in quarterly net profit. Other Southeast
Asian stock markets edged up on Wednesday as hopes of a widely
anticipated rate cut by the US Federal Reserve later in the day boosted
risk sentiment. The US central bank's likely 25.0 basis point trim would
mark Fed's third rate-cut this year, while investors would keenly watch
Chairman Jerome Powell's post-meeting conference to take cues for
future policy easing stance. (Source: Bangkok Post)
 Suvit calls for Thailand to embrace 5G fast, or lag behind
rivals
Thailand must embrace 5G telecommunication technology or be left
behind, Suvit Maesincee, Minister of Higher Education, Science,
Research and Innovation said on Wednesday. "There is an ongoing
roadmap for 5G planning and implementation globally. Thailand needs to
embrace 5G fast otherwise it will lag behind. Our neighbours such as
Vietnam already have a 5G implementation plan," Mr Suvit told a seminar
titled "5G to Revive Thai SMEs" hosted by the Bangkok Post and Post
Today online. (Source: Bangkok Post)

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04 November 2019

Regional Banking peers comparison based on Bloomberg estimation

Local
Share Market
Price @ 1 Cap Est. Est. Historical
November (USDm) CY19 P/E CY20 P/E Current PBV CY19 CY20 DPS Yield 12 Mth Div
Company Names 2019 (x) (x) EPS CY19 EPS (x) ROE ROE (sen) (%) Yield
Indonesia
BANK CENTRAL ASIA TBK PT 31,625 55535.2 27.0 23.8 1039.6 1170.7 4.6 17.8 17.6 33694.1 1.1 1.1
BANK RAKYAT INDONESIA PERSER 4,180 36722.6 14.5 12.6 263.7 287.4 2.6 18.3 18.9 12561.2 3.0 3.2
BANK MANDIRI PERSERO TBK PT 6,975 23183.8 11.8 10.4 515.3 590.1 1.7 14.5 15.2 24019.8 3.4 3.5
BANK NEGARA INDONESIA PERSER 7,675 10194.3 9.1 8.0 821.2 842.9 1.2 13.7 14.2 21409.0 2.8 2.6
BANK DANAMON INDONESIA TBK 4,120 2868.0 9.9 8.9 431.6 414.1 0.9 11.9 9.9 13101.0 3.2 3.5
Simple Average 14.5 12.8 15.2 15.2 2.8

Singapore
DBS GROUP HOLDINGS LTD 25.87 48701.6 10.7 10.4 2.2 2.4 1.3 12.9 12.5 122.8 4.7 4.6
OVERSEA-CHINESE BANKING
11.02 35765.2 9.9 9.6 1.1 1.1 1.1 11.3 11.0 50.0 4.5 4.4
CORP
UNITED OVERSEAS BANK LTD 26.57 32664.3 10.4 10.4 2.4 2.5 1.2 11.4 11.1 124.9 4.7 4.7
Simple Average 10.3 10.2 11.9 11.5 4.6

Thailand
SIAM COMMERCIAL BANK PUB CO 112.0 12603.7 8.9 9.1 12.7 12.6 N.A. 11.1 10.1 610.3 5.4 4.9
BANGKOK BANK PUBLIC CO LTD 174.0 11007.4 9.1 8.7 18.9 19.2 0.8 8.6 8.5 688.7 4.0 3.7
KASIKORNBANK PCL 139.0 11024.8 8.6 8.6 16.1 16.1 0.8 10.0 9.4 431.9 3.1 2.9
KRUNG THAI BANK PUB CO LTD 16.5 7642.5 7.8 7.7 2.1 2.1 0.7 9.4 9.0 79.2 4.8 4.4
BANK OF AYUDHYA PCL 31.3 7618.1 7.0 7.9 3.4 4.5 0.9 12.0 10.3 116.4 3.7 2.7
Simple Average 8.3 8.4 10.2 9.5 3.7

Regional Average 11.1 10.5 12.5 12.1 3.5

Malaysia
MALAYAN BANKING BHD 8.60 23214.2 12.0 11.5 0.7 0.7 1.2 10.4 10.3 56.9 6.6 6.6
CIMB GROUP HOLDINGS BHD 5.26 12286.3 10.4 9.8 0.5 0.5 0.9 9.2 9.1 26.3 5.0 4.9
PUBLIC BANK BERHAD 19.80 18457.5 13.8 13.4 1.5 1.4 1.8 13.2 12.7 70.2 3.5 3.5
HONG LEONG BANK BERHAD 17.30 9005.0 13.3 12.5 1.2 1.3 1.4 10.4 10.3 53.4 3.1 2.9
AMMB HOLDINGS BHD 3.98 2880.6 8.5 8.0 0.4 0.5 0.7 7.9 7.8 20.4 5.1 5.0
RHB BANK BHD 5.78 5565.6 9.6 9.1 0.6 0.6 0.9 9.9 9.9 24.4 4.2 4.4
ALLIANCE BANK MALAYSIA BHD 2.88 1070.6 9.2 7.8 0.3 0.4 0.8 8.5 9.4 14.9 5.2 5.8
Simple Average 11.0 10.3 9.9 10.0 4.7

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 Regional News Update
04 November 2019

Regional Plantation peers comparison based on Bloomberg estimation

Local
Market
Share
Cap
Price @ 1 Best Historical
(USDm)
November CY19 CY20 Current CY19 CY20 DPS Est. 12 Mth
Company Names 2019 P/E (x) P/E (x) EPS CY19 EPS PBV (x) ROE ROE (sen) Yield (%) Div Yield
Indonesia
ASTRA AGRO LESTARI TBK PT 11,325 1552.5 37.0 19.2 773.3 305.9 1.2 2.9 5.4 27113.1 2.4 3.0
PP LONDON SUMATRA INDONES PT 1,300 631.7 37.5 21.6 75.4 34.7 1.1 2.5 4.3 1812.6 1.4 1.5
SAMPOERNA AGRO TBK PT 2,330 313.7 69.8 17.1 109.3 33.4 1.1 1.6 6.2 1930.0 0.8 N.A.
EAGLE HIGH PLANTATIONS TBK P 117 262.7 N.A. N.A. N.A. N.A. 0.7 N.A. N.A. N.A. N.A. N.A.
BAKRIE SUMATERA PLANTATIO PT 98 17.5 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.
Simple Average 48.1 19.3 2.3 5.3 2.2

Singapore
WILMAR INTERNATIONAL LTD 3.76 17556.3 15.2 13.3 0.2 0.2 1.1 6.9 7.5 7.3 2.6 2.7
GOLDEN AGRI-RESOURCES LTD 0.21 1970.7 77.4 19.3 0.0 0.0 0.5 0.4 2.3 0.2 1.3 2.8
OLAM INTERNATIONAL LTD 1.87 4390.9 12.5 11.7 0.1 0.2 1.1 N.A. N.A. 7.6 4.1 4.0
Simple Average 35.0 14.8 3.7 4.9 3.1

Regional Average 41.6 17.0 2.9 5.1 2.8

Malaysia
SIME DARBY BERHAD 2.29 3739.7 15.7 14.6 0.1 0.1 1.1 6.4 6.6 9.2 4.0 4.4
IOI CORP BHD 4.38 6609.9 31.5 29.0 0.2 0.1 3.0 8.9 9.3 9.1 2.1 0.8
KUALA LUMPUR KEPONG BHD 21.70 5549.2 34.8 27.5 0.9 0.6 2.2 5.8 7.1 43.0 2.0 2.1
GENTING PLANTATIONS BHD 10.02 2158.7 46.2 32.5 0.3 0.2 1.9 3.7 5.4 14.3 1.4 1.2
IJM PLANTATIONS BHD 1.53 323.5 61.2 34.0 0.1 0.0 1.0 1.6 2.7 2.8 1.8 1.3
TA ANN HOLDINGS BERHAD 2.40 253.8 18.0 11.8 0.2 0.1 0.8 4.0 6.4 8.8 3.7 2.1
Simple Average 34.6 24.9 5.1 6.2 2.0

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 Regional News Update
04 November 2019

Regional Telco peers comparison based on Bloomberg estimation

Local
Market
Share
Cap
Price @ 1 Best Est. Historical
(USDm)
November CY19 CY20 Current CY19 CY19 CY20 PBV CY19 CY20 DPS Yield 12 Mth
Company Names 2019 P/E (x) P/E (x) EPS EPS EV/EBITDA EV/EBITDA (x) ROE ROE (sen) (%) Div Yield
Indonesia
TELEKOMUNIKASI INDONESIA PER 4,080 28787.3 18.8 16.6 198.0 217.5 6.9 6.2 4.1 20.4 21.6 16142.5 4.0 4.0
XL AXIATA TBK PT 3,520 2679.6 67.0 33.0 3.6 52.6 6.4 5.7 2.0 3.0 5.6 2981.6 0.8 N.A.
INDOSAT TBK PT 3,200 1238.5 N.A. N.A. -345.6 -321.8 5.2 4.7 1.6 -16.1 -15.5 931.0 0.3 N.A.
Simple Average 42.9 24.8 6.2 5.6 2.4 3.9 4.0

Singapore
SINGAPORE TELECOMMUNICATIONS 3.31 39830.2 18.2 16.8 0.2 0.2 14.1 14.0 1.8 9.8 10.7 18.0 5.4 5.3
STARHUB LTD 1.30 1658.9 13.3 14.8 0.1 0.1 6.5 6.7 8.1 37.3 33.5 9.5 7.3 9.6
M1 LTD N.A. N.A. N.A. N.A. 0.1 0.1 N.A. N.A. N.A. 22.6 18.8 9.3 N.A. N.A.
Simple Average 15.7 15.8 10.3 10.3 23.2 21.0 7.5

Thailand
ADVANCED INFO SERVICE PCL 225.0 22170.3 20.9 19.4 10.2 10.8 9.7 9.1 10.8 50.5 47.1 767.3 3.4 3.1
TOTAL ACCESS COMMUNICATION 61.5 4826.0 22.6 21.9 0.6 2.7 7.5 7.1 6.0 26.4 23.9 186.8 3.0 2.0
Simple Average 21.7 20.6 8.6 8.1 38.5 35.5 2.6

Regional Average 26.8 20.4 8.0 7.7 19.2 18.2 4.8

Malaysia
MAXIS BHD 5.38 10103.1 26.8 25.9 0.3 0.2 13.6 13.2 5.9 22.1 22.6 19.6 3.6 3.7
AXIATA GROUP BERHAD 4.30 9425.7 35.5 29.1 0.1 0.1 6.9 6.6 2.3 6.4 7.3 10.8 2.5 2.2
DIGI.COM BHD 4.68 8737.4 24.4 23.9 0.2 0.2 13.3 13.1 54.6 224.7 224.3 19.1 4.1 4.1
TELEKOM MALAYSIA BHD 3.80 3436.0 15.1 15.8 0.1 0.3 5.3 5.4 2.0 12.1 11.4 12.4 3.3 0.5
Simple Average 25.4 23.6 9.8 9.6 66.3 66.4 2.6

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 Regional News Update
04 November 2019

Stock Ratings are defined as follows:

Stock Recommendations

OUTPERFORM : A particular stock’s Expected Total Return is MORE than 10%

MARKET PERFORM : A particular stock’s Expected Total Return is WITHIN the range of -5% to 10%
UNDERPERFORM : A particular stock’s Expected Total Return is LESS than -5%

Sector Recommendations***

OVERWEIGHT : A particular sector’s Expected Total Return is MORE than 10%

NEUTRAL : A particular sector’s Expected Total Return is WITHIN the range of -5% to 10%
UNDERWEIGHT : A particular sector’s Expected Total Return is LESS than -5%

***Sector recommendations are defined based on market capitalisation weighted average expected total
return for stocks under our coverage.

This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not
make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the
specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This
document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees.
Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document
or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or
employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or
otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies.

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