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Good morning.
Today, we feature a note on Naim Holdings Berhad in our FundTech Radar – 7th May 2019. Naim Holdings Berhad (NAIM) is a fully-integrated property and construction player focusing on integrated property developments, construction, civil engineering, oil and gas and infrastructure projects, as well as oil and gas services through its investment in Dayang Enterprise Holdings Bhd (~26% stakes). NAIM is mainly domiciled in Malaysia.
Fundamental Stance
· NAIM swung into the black in FY18 with a PATAMI of RM65.32m compared to a core loss of RM178.47m in FY17.
· FY18 core PATAMI margin jumped to 10.8%.
· Net gearing ratio dropped to 0.35x in FY18 from 0.42x in FY17.
· According to StarBiz dated 29th Jan 2019, Sarawak tycoon Datuk Amar Abdul Hamed Bin Haji Sepawi, who is NAIM’s chairman as well as the cousin of former Sarawak chief minister Tun Abdul Taib Mahmud, has raised his stakes recently.
· NAIM’s prospects are expected to improve in tandem with the state’s infrastructure spending, such as coastal highway roads; second trunk road, water supply and electricity connectivity for this year and in 2020, ahead of the state polls that must be held by mid-2021.
· NAIM has a sizeable construction order book of approximately RM1.9bn.
· NAIM has circa total 1,800 acres land banks located in Kuching, Bintulu, and Miri for future development.
· Currently trading at a 12-month trailing P/E of 7.8x, which is a 50.7% discount to its domestic peers P/Eof 15.9x.
Technical Front
A major triangle pattern is still taking form.
Resistances: 1.10/1.28/1.44
Supports: 0.995/0.935/0.890
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
7th May 2019
Disclaimers: This distribution is by CIMB Investment Bank Berhad (“CIMB”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CIMB, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.
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