Today’s Highlights – Nestle (ADD, maintain) Results Note Fixed Income Research

28 October 2014
Today’s Highlights
B ur sa M alaysia
KLCI 52-wk range
Results Note – Nestle (ADD, maintain)
1892.65 - 1767.77
M kt Cap (RM bn)
- Still resilient
Fixed Income Research
- Mostly sidelined for FOMC on Wednesday
1,743.50
Vol (m shrs)
2,293.04
Value (RM m)
1,855.28
KLCI futures (spot)
1,817.50
KLCI futures (1-mth)
1,818.50
KLC I Ind ex ( 12 - mt h)
1950
Outside Malaysia
1900
US stocks little changed as energy shares drop with oil
1850
Pending home sales in US increase less than forecast
1800
US services activity remained solid in Q314
1750
Dec-13 Mar-14
Jun-14
Sep-14
ECB says €1.7bn of covered bonds bought last week
T o p 5 Gainer s
German Ifo business confidence drops for sixth month
BAT
69.90
1.44
2.1
KLK
21.98
0.90
4.3
BKAWAN
18.28
0.54
3.0
PM ETAL
6.08
0.40
7.0
26.00
0.40
1.6
Pr ice ( R M ) chg ( R M )
% chg
Pr ice ( R M ) chg ( R M )
Schaeuble says EU’s Russia sanctions over Ukraine will work
France to make extra budget efforts, Sapin tells EU Commission
UTDPLT
% chg
T o p 5 Lo ser s
Brent falls for second day as Goldman reduces forecast
PETGAS
21.90
(0.30)
(1.35)
IBRACO
1.74
(0.30)
(14.71)
(0.60)
DLADY
46.12
(0.28)
PRKCORP
3.35
(0.22)
(6.16)
HARISON
3.86
(0.17)
(4.22)
Pr ice ( R M ) chg ( R M )
V al ( R M m)
T o p 5 V alue T r ad ed
PBBANK
CIM B
M AYBANK
TENAGA
TM
18.60
(0.04)
152.28
6.17
(0.12)
92.63
9.68
(0.02)
68.49
13.06
0.06
59.38
6.94
0.06
55.69
Key Eq uit y Ind ices
C lo se
Other Markets Key Indicators
COMMODITIES
CURRENCIES
Latest
CPO (RM/Tonne)
Spot (Nov)
3-mth futures (Feb)
Crude oil (US$/brl)
Spot
1-mth futures
Gold (US$/oz)
Spot
1-mth futures
chg (%)
2,188.0
2,166.0
(0.5)
(0.7)
81.0
80.7
(0.0)
(0.1)
1,229.1
1,228.9
(0.2)
(0.2)
RM/US$
RM per 100 Yen
RM/S$
Yen/US$
Eur/US$
Latest
3.28
3.04
2.57
107.83
0.79
Ytd chg (%)
(0.0)
2.4
0.8
(2.3)
8.2
MALAYSIA INTEREST RATES
Latest Ytd chg (bps)
OPR (%)
3.25
25.0
3-mth Klibor (%)
3.76
45.0
Maybank BLR (%)
6.85
25.0
*as at 16 Jul 2014
% chg Y t d chg ( %)
KLCI
1823.2
0.2
Dow Jones
16817.9
0.1
1.5
Nasdaq
4485.9
0.0
7.4
FTSE100
6363.5
(0.4)
(5.7)
East. Europe
2651.0
(0.6)
(0.7)
43810.5
0.3
2.5
1302.4
0.4
23.1
Shanghai B
2290.4
(0.5)
8.2
Hong Kong
23143.2
(0.7)
(0.7)
(3.9)
M exico
Shenzen B
(2.3)
Korea
1932.0
0.3
Singapore
3226.1
0.1
1.9
Indonesia
5024.3
(1.0)
17.5
Philippines
7103.5
(0.0)
20.6
Thailand
1547.9
0.5
19.2
Vietnam
580.8
(1.8)
15.1
26752.9
(0.4)
26.4
8627.8
(0.2)
0.2
India
Taiwan
Affin Hwang Investment Bank Bhd (14389-U)
(Formerly known as HwangDBS Investment Bank Bhd)
Page 1 of 6
28 October 2014
Outside Malaysia
US stocks little changed as energy shares drop with oil
US stocks were little changed as energy shares declined after oil dipped
below US$80 a barrel while telephone and consumer shares rose. The
S&P 500 Index slipped less than 0.2% to 1,961.63. The Dow Jones
Industry Average rose 12.53 points at 16,817.94.
Pending home sales in US increase less than forecast
The number of contracts to buy existing homes rose less than forecast in
September, signaling demand will probably plateau heading into the end of
2014. The pending home sales index increased 0.3% in September after
dropping 1% in August, the National Association of Realtors said. The
median projection in a Bloomberg survey called for a 1% gain.
US services activity remained solid in Q314
The pace of US services activity in the Q314 remained at an elevated level
after cooling a bit during October. The preliminary Markit Services
Purchasing Managers’ Index (PMI) slipped to 57.3 in October from a
blistering 58.9 in September. This brought the Composite (services and
manufacturing PMIs) to 57.4, also lower than the September reading of 59.
ECB says €1.7bn of covered bonds bought last week
The ECB said it settled €1.704bn (US$2.2bn) of covered-bond purchases
last week as it started its latest effort to revive the euro-area economy. The
central bank began purchases on Oct. 20, returning to the market for a
third time in six years as part of a renewed attempt to stave off deflation
and pump life into a moribund recovery. President Mario Draghi plans to
fulfill his pledge of expanding ECB’s balance sheet by as much as €1trn.
German Ifo business confidence drops for sixth month
German business confidence dropped for a sixth month as the specter of a
recession haunts Europe’s largest economy. The Ifo institute’s business
climate index dropped to 103.2 in October from 104.7 in September.
Median forecasts surveyed by Bloomberg predicted a decline to 104.5.
Schaeuble says EU’s Russia sanctions over Ukraine will work
European Union sanctions imposed on Russia over the Ukraine crisis were
“unavoidable and they’ll pay off,” German Finance Minister Wolfgang
Schaeuble said. Schaeuble said the current weakening of Germany’s
economy “has to do with geopolitical risks in the first place and that’s not
surprising when you look at what’s happening in Ukraine.”
France to make extra budget efforts, Sapin tells EU Commission
France will work harder to cut its public deficit with a tougher crackdown on
tax fraud and aided by lower borrowing costs, Finance Minister Michel
Sapin told the European Commission. The euro-area’s second-largest
economy will reduce the deficit by an additional €3.6-3.7bn (US$4.7bn),
the minister said. In the budget law for 2015 submitted initially, France
estimated the 2014 deficit would rise to -4.4% of GDP, the first increase in
five years. For 2015, it saw almost no improvement to -4.3% of GDP.
Brent falls for second day as Goldman reduces forecast
Brent fell for a second day as Goldman Sachs Group Inc. joined other
banks in lowering price forecasts. Brent for December settlement slid
US$0.30 to end at US$85.83 a barrel.
Source: Bloomberg
(Nur’Shazeya; 03-2145 0541; shazeya.razzaad@affinhwang.com)
Affin Hwang Investment Bank Bhd (14389-U)
(Formerly known as HwangDBS Investment Bank Bhd)
Page 2 of 6
28 October 2014
Market Summary
Table 1: Off Market transactions
Shares
Price (RM)
Vol (m)
TITIJYA
WTHORSE
EXTOL
2.13
2.10
0.28
3.60
3.45
2.00
Val (RMm)
Type*
7.67
7.25
0.56
D
D
D
* D-Direct M-Married OM-Odd Married OD-Odd Direct
Source: Bloomberg
Table 2: Shares Buyback/ Resale
Company*
Date
Units
SUNWAY
17-Oct-14
1131000
WCT
20-Oct-14
900000
Treasury
5230400
2855270
Transaction
Purchase
Purchase
Units
389,300
80,800
Transaction
ESOS
ESOS
Lodgement
10-Nov-14
Payment
1=1
* Only FBM100 Component Stocks
Source : Bursa Malaysia
Table 3:
ESOS
Company*
IOICORP
SUNWAY
Date
28-Oct-14
28-Oct-14
* Only FBM100 Component Stocks
Source : Bursa Malaysia
Table 4: Entitlements
Company
Entitlement
PMETAL
Bonus Issue
Ex-Date
6-Nov-14
Source : Bursa Malaysia
Affin Hwang Investment Bank Bhd (14389-U)
(Formerly known as HwangDBS Investment Bank Bhd)
Page 3 of 6
28 October 2014
Fig 5: Shareholding changes
Substantial Shareholder
EPF
EPF
Wellington Mgmt Company, LLP
EPF
EPF
Amanah Raya Trustees
Lembaga Tabung Haji
EPF
EPF
EPF
EPF
Kumpulan Wang Persaraan
EPF
Kumpulan Wang Persaraan
EPF
EPF
EPF
EPF
EPF
EPF
Kumpulan Wang Persaraan
Johor Corporation
Amanah Raya Trustees
Amanah Raya Trustees
Permodalan Nasional Bhd
Amanah Raya Trustees
EPF
EPF
EPF
EPF
Kumpulan Wang Persaraan
EPF
EPF
Kumpulan Wang Persaraan
EPF
EPF
Kumpulan Wang Persaraan
EPF
Amanah Raya Trustees
EPF
EPF
EPF
EPF
17-Oct
20-Oct
17-Oct
16-Oct
15-Oct
17-Oct
17-Oct
Date
21-Oct-14
21-Oct-14
to 21-Oct-2014
21-Oct-14
20-Oct-14
20-Oct-14
to 23-Oct-2014
21-Oct-14
21-Oct-14
21-Oct-14
21-Oct-14
20-Oct-14
21-Oct-14
20-Oct-14
21-Oct-14
21-Oct-14
21-Oct-14
21-Oct-14
21-Oct-14
21-Oct-14
20-Oct-14
21-Oct-14
23-Oct-14
21-Oct-14
20-Oct-14
20-Oct-14
to 21-Oct-2014
to 17-Oct-2014
21-Oct-14
21-Oct-14
to 20-Oct-2014
20-Oct-14
21-Oct-14
20-Oct-14
21-Oct-14
21-Oct-14
20-Oct-14
20-Oct-14
to 21-Oct-2014
to 21-Oct-2014
21-Oct-14
21-Oct-14
21-Oct-14
Transaction
Disposed
Acquired
Acquired
Acquired
Acquired
Disposed
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Disposed
Acquired
Disposed
Disposed
Disposed
Acquired
Disposed
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Disposed
Disposed
Acquired
Acquired
Disposed
Disposed
Disposed
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Disposed
Acquired
Acquired
Disposed
Disposed
Units
24,000
500,000
2,204,830
1,903,000
3,049,300
1,106,000
4,084,400
274,600
1,122,600
5,500,000
500,000
350,000
1,216,100
4,000
79,300
86,000
500,000
988,300
100,700
184,700
147,700
145,000
18,700
826,800
70,000,000
70,000,000
3,780,100
309,700
2,526,200
922,800
1,853,600
80,800
216,000
272,300
2,571,000
82,600
198,000
354,500
1,370,100
2,109,200
170,300
150,000
2,200,000
Company
AEON
AFG
AIRASIA
AMMB
AXIATA
AXIATA
BIMB
CMSB
DIALOG
DIGI
DRBHCOM
GAMUDA
GAMUDA
GENP
HLBANK
IHH
IJM
IOICORP
IOIPROP
KOSSAN
KULIM
KULIM
LAFARGE
MAXIS
MAYBANK
MAYBANK
MAYBANK
MISC
PBBANK
PERISAI
PETGAS
PETGAS
POS
POS
SKPETRO
TIMECOM
TIMECOM
TM
TM
TM
TOPGLOV
UEMS
YTLPOWR
Source: Bursa Malaysia
Affin Hwang Investment Bank Bhd (14389-U)
(Formerly known as HwangDBS Investment Bank Bhd)
Page 4 of 6
28 October 2014
Fig 6: Dividend Entitlement
Stocks
MKH
KEINHIN
HLBANK
CRESNDO
KMLOONG
FOCUSP
YTLE
YTLPOWR
YTL
GLOMAC
BAT
BREM
CSCENIC
AXREIT
LBALUM
OKA
ZHULIAN
HLCAP
SOLID
LBICAP
SOLID
WEIDA
DIGI
TGUAN
CVIEW
SUPERLN
EUPE
HAIO
DAIBOCI
HEXZA
DIALOG
GADANG
HARBOUR
ASIAFLE
CHEETAH
BJLAND
SUIWAH
APOLLO
MKLAND
PINTARAS
IMASPRO
SCIENTX
Particulars
Int. Div. of 8sen
Final Div. of 1sen
Final Div. of 26sen
Int. Div of 7sen
Int. Div of 7sen
Int. Div. of 1sen
Int. Div of 4sen
Int. Div. of 10sen
Int. Div. of 9.5sen
Final Div. of 2.65sen
Int. Div. of 78sen
Int. Div of 3sen
Int. Div. of 4sen
Income Distribution of 5sen
1st Int. Div of 2sen
1st and Final Div. of 3sen
Int. Div. of 2sen
Int. Div. of 15sen
Final Div. of 2sen
Int. Div. of 5sen
Final. Div. of 2sen
1st and Final Div. of 3sen
Int. Div of 6.2sen
Int Div. of 3sen
Int. Div of 7sen
Int. Div. of 2sen
Int. Div. of 1.5sen
Final Div. Of 10sen
Int. Div of 2.5sen
Final Div. of 4sen
Final Div. of 1.1sen
1st and Final Div. of 4sen
1st and Final Div. of 2.5sen
Int Div. of 13.5sen
1st and Final Div. of 1.25sen
Final Div. of 1sen
1st and Final Div. of 6sen
1st and Fin. Div. of 25sen
Fin. Div. of 2sen
Final Div. of 6sen
1st and Final Div. of 3.5sen
Final Div. of 13sen
DPS (sen) Announce Ex-Date
Lodge
Payment
8.00
10-Oct-14
29-Oct-14
31-Oct-14
11-Nov-14
1.00
2-Oct-14
29-Oct-14
31-Oct-14
20-Nov-14
26.00
1-Oct-14
29-Oct-14
31-Oct-14
18-Nov-14
7.00
29-Sep-14
29-Oct-14
31-Oct-14
21-Nov-14
7.00
29-Sep-14
29-Oct-14
31-Oct-14
21-Nov-14
1.00
28-Aug-14
29-Oct-14
31-Oct-14
21-Nov-14
4.00
28-Aug-14
29-Oct-14
31-Oct-14
14-Nov-14
10.00
28-Aug-14
29-Oct-14
31-Oct-14
14-Nov-14
9.50
28-Aug-14
29-Oct-14
31-Oct-14
14-Nov-14
2.65
23-Sep-14
29-Oct-14
31-Oct-14
24-Nov-14
78.00
16-Oct-14
30-Oct-14
3-Nov-14
27-Nov-14
3.00
5-Sep-14
30-Oct-14
3-Nov-14
18-Nov-14
4.00
20-Aug-14
30-Oct-14
3-Nov-14
18-Nov-14
5.00
20-Oct-14
31-Oct-14
4-Nov-14
28-Nov-14
2.00
2-Oct-14
31-Oct-14
4-Nov-14
19-Nov-14
3.00
25-Jul-14
31-Oct-14
4-Nov-14
21-Nov-14
2.00
15-Oct-14
3-Nov-14
5-Nov-14
28-Nov-14
15.00
7-Oct-14
3-Nov-14
5-Nov-14
19-Nov-14
2.00
22-Sep-14
4-Nov-14
6-Nov-14
2-Dec-14
5.00
27-Aug-14
4-Nov-14
6-Nov-14
21-Nov-14
2.00
22-Aug-14
4-Nov-14
6-Nov-14
2-Dec-14
3.00
23-Jul-14
4-Nov-14
6-Nov-14
21-Nov-14
6.00
20-Oct-14
5-Nov-14
7-Nov-14
5-Dec-14
3.00
22-Aug-14
5-Nov-14
7-Nov-14
18-Nov-14
7.00
21-Oct-14
6-Nov-14
10-Nov-14
20-Nov-14
2.00
16-Oct-14
6-Nov-14
10-Nov-14
28-Nov-14
1.50
24-Oct-14
11-Nov-14
13-Nov-14 12-Dec-14
10.00
12-Sep-14
12-Nov-14
14-Nov-14
26-Nov-14
2.50
21-Oct-14
13-Nov-14
17-Nov-14 11-Dec-14
4.00
28-Oct-14
24-Nov-14
26-Nov-14 10-Dec-14
1.10
28-Oct-14
26-Nov-14
28-Nov-14 18-Dec-14
4.00
28-Oct-14
26-Nov-14
28-Nov-14 23-Dec-14
2.50
16-Oct-14
26-Nov-14
28-Nov-14 19-Dec-14
13.50
4-Sep-14
26-Nov-14
28-Nov-14 26-Dec-14
1.25
23-Oct-14
27-Nov-14
1-Dec-14 12-Dec-14
1.00
2-Oct-14
27-Nov-14
1-Dec-14 18-Dec-14
6.00
23-Oct-14
2-Dec-14
4-Dec-14 18-Dec-14
25.00
28-Aug-14 10-Dec-14 12-Dec-14
1-Sep-15
2.00
14-Oct-14 11-Dec-14 15-Dec-14 31-Dec-14
6.00
25-Sep-14 29-Dec-14 31-Dec-14
15-Jan-15
3.50
24-Oct-14
7-Jan-15
9-Jan-15
19-Jan-15
13.00
24-Sep-14
7-Jan-15
9-Jan-15
6-Feb-15
Source: Bursa Malaysia
Affin Hwang Investment Bank Bhd (14389-U)
(Formerly known as HwangDBS Investment Bank Bhd)
Page 5 of 6
28 October 2014
Equity Rating Structure and Definitions
BUY
Total return is expected to exceed +15% over a 12-month period
TRADING BUY (TR Total return is expected to exceed +15% over a 3-month period due to short-term positive development, but fundamentals are not strong enough to warrant a
BUY)
Buy call. This is to cater to investors who are willing to take on higher risks
ADD
Total return is expected to be between 0% to +15% over a 12-month period
REDUCE
Total return is expected to be between 0% to -15% over a 12-month period
TRADING SELL
(TR SELL)
Total return is expected to exceed -15% over a 3-month period due to short-term negative development, but fundamentals are strong enough to avoid a Sell
call. This is to cater to investors who are willing to take on higher risks
SELL
Total return is expected to be below -15% over a 12-month period
NOT RATED
Affin Hwang Investment Bank Berhad does not provide research coverage or rating for this company. Report is intended as information only and not as a
recommendation
OVERWEIGHT
Industry, as defined by the analyst’s coverage universe, is expected to outperform the KLCI benchmark over the next 12 months
NEUTRAL
Industry, as defined by the analyst’s coverage universe, is expected to perform inline with the KLCI benchmark over the next 12 months
UNDERWEIGHT
Industry, as defined by the analyst’s coverage universe is expected to under-perform the KLCI benchmark over the next 12 months
This report is intended for information purposes only and has been prepared by Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank
Berhad) (“the Company”) based on sources believed to be reliable. However, such sources have not been independently verified by the Company, and as such the Company does
not give any guarantee, representation or warranty (express or implied) as to the adequacy, accuracy, reliability or completeness of the information and/or opinion provided or
rendered in this report. Facts, information, views and/or opinion presented in this report have not been reviewed by, may not reflect information known to, and may present a differing
view expressed by other business units within the Company, including investment banking personnel. Reports issued by the Company, are prepared in accordance with the
Company’s policies for managing conflicts of interest arising as a result of publication and distribution of investment research reports. Under no circumstances shall the Company, its
associates and/or any person related to it be liable in any manner whatsoever for any consequences (including but are not limited to any direct, indirect or consequential losses, loss
of profit and damages) arising from the use of or reliance on the information and/or opinion provided or rendered in this report. Any opinions or estimates in this report are that of the
Company, as of this date and subject to change without prior notice. Under no circumstances shall this report be construed as an offer to sell or a solicitation of an offer to buy any
securities. The Company and/or any of its directors and/or employees may have an interest in the securities mentioned therein. The Company may also make investment decisions or
take proprietary positions that are inconsistent with the recommendations or views in this report.
Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not fit to your financial
status, risk and return preferences and hence an independent evaluation is essential. Investors are advised to independently evaluate particular investments and strategies and to
seek independent financial, legal and other advice on the information and/or opinion contained in this report before investing or participating in any of the securities or investment
strategies or transactions discussed in this report.
Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability
for any damages of any kind relating to such data.
The Company’s research, or any portion thereof may not be reprinted, sold or redistributed without the consent of the Company.
The Company, is a participant of the Capital Market Development Fund-Bursa Research Scheme, and will receive compensation for the participation.
This report is printed and published by:
Affin Hwang Investment Bank Berhad (14389-U)
(formerly known as HwangDBS Investment Bank Berhad)
A Participating Organisation of Bursa Malaysia Securities Bhd
Chulan Tower Branch,
3rd Floor, Chulan Tower,
No 3, Jalan Conlay,
50450 Kuala Lumpur.
www.affinhwang.com
Email : research@affinhwang.com
Tel : + 603 2143 8668
Fax : + 603 2145 3005
Affin Hwang Investment Bank Bhd (14389-U)
(Formerly known as HwangDBS Investment Bank Bhd)
Page 6 of 6