buy sell hold 2021




Building Materials
Labour situation improving

■ Sector employment further improved in 2Q22 (+14% yoy), almost back to pre-Covid levels (end-Dec 19) as contractors accelerate project executions.

■ We believe activities should remain supported medium-term by elevated order books, resumption of major projects and higher public housing supply.

■ Reiterate sector Overweight. BRC is our top sector pick on attractive valuations and higher dividend yield (c.10%).


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Ramssol Berhad
Tapping into digitalisation of HCM

■ We view Ramssol as a play on the benefits from the structural shift towards HCM digitalisation given its strong ASEAN presence (located in 5 countries).

■ Its near-term outlook should be driven by further expansion into regional markets, with growing service offerings to cater to a wider clientele.

■ Initiate with Add and RM0.55 TP (12x CY23F P/E), backed by robust growth prospects (FY21-24F EPS CAGR: +10.2%) and low CY23F P/E of 9.5x.


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Steady does it

Knowledge sharing

Digi’s technology and sustainability teams shared their insights on the respective subjects. The session reinforced our view of Digi being a very well-managed telco.

We also introduce an expanded ESG sheet for Digi. Maintain HOLD with an unchanged DCF-based TP of MYR3.50. We prefer TM (T MK, BUY, CP: MYR5.88, TP: MYR7.50) in the telco space.


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Pintaras Jaya Bhd (PINT MK)
Managing its ESG risks

No major deviations

Pintaras continues to uphold sustainability as a core priority. In FY22, the group has identified 3 key themes of sustainability practices: sustainable business growth, environmental stewardship, and social responsibility. In all, we are encouraged by Pintaras' efforts in managing its ESG risks.

What it lacks however, is in meeting the Malaysian Code on Corporate Governance's recommendations on independent director and gender diversity, amongst others. We have a HOLD on the stock. Our unchanged TP is MYR2.20 based on 7x FY23E core EPS plus net cash (+ FA). 


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Singapore Medical Group (SMG SP)
Wait Out For A Potentially Better Offer

On 13 Sep 22, SMG received a general offer of S$0.37/share from TLW Success, an investment vehicle of its directors. Although the offer represents a premium to the VWAPs, it is below our reduced target price of S$0.45 (14x 2022F EPS), after trimming our 2022 EPS by 15% to account for the weak 1H22 results.

Also, the offer represents 11.5x 2021 PE, lower than Singapore O&G’s 16x 2021 PE. REJECT OFFER. We recommend shareholders to wait for a potentially better offer. 


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Automobile – Malaysia
Sales Continue To Grow, On Track To Beat 600,000 Level

MAA’s August TIV came in at 66,614 units (+36% mom, +270% yoy), bringing ytd TIV to 447,209 units (+6% ytd). This is 74% of our 2022 TIV forecast of 605,000 units (+19% yoy).

We make no changes to our 2022 TIV as we believe the sales could taper off towards 4Q22. Beyond here, we believe 2023 could see a cyclical car demand downturn from a high base. Maintain UNDERWEIGHT. 


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