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Market Index 1D YTD

KLCI 1,718.4 0.1% 1.5%

Singapore 2,880.7 -0.9% -0.1%Thailand 1,393.6 0.8% 8.2%

Philippines 7,376.4 1.0% 6.1%Indonesia 4,885.2 0.0% 6.4%

Hong Kong 20,684.2 0.1% -5.6%Korea 1,989.8 -0.1% 1.5%Taiwan 8,812.7 0.0% 5.7%Japan 16,724.8 -1.2% -12.1%Dow Jones 17,623.9 0.1% 1.1%

Nasdaq 4,808.9 0.3% -4.0%

REGIONAL MARKETS

TOP 5 GAINERS

TOP 5 LOSERS

Closing Chg

Price (RM) (RM)

NESTLE 75.30 0.80PANAMY 28.90 0.60AEONCR 12.38 0.44UTDPLT 26.88 0.40

SCIENTX 12.30 0.30

PETGAS 22.00 -0.46POS 2.76 -0.31AIRPORT 6.70 -0.27MAYBANKC20 0.13 -0.21

KOSSAN 6.22 -0.17

BURSA MALAYSIA

KLCI 1,669.24 (-2.76)

52-Week Range 1,371.18 - 1,668.32Mkt Cap (RMb) 1,703.42

Daily Volume (m shares) 2,111.48Daily Value (RMmil) 2,183.97

Closing ChgPrice (RM) (RM)

NEWS HIGHLIGHTS

22 March 2016

Equity Research Team

(603-2070 2444)

www.amesecurities.com.my

Close 1D YTD

RM/US$ 4.0588 -0.1% 5.5%OPR (%) 3.25 0.0% 0.0%BLR (% Maybank) 6.85 0.0% 0.0%NYMEX Crude oil

US spot(US$/barrel) 39.91 1.2% 7.1%

CPO spot price(RM/tonne) 2,591 1.8% 17.8%

ECONOMIC STATISTICS

 AmWatch

STOCK FOCUS OF THE DAY

KL Kepong : FFB output growth still positive YoY in 5MFY16  Buy

Maintain BUY on Kuala Lumpur Kepong Bhd (KLK) with an unchanged fair value of 

RM25.10/share, which implies a FY17F PE of 23.5x. In the past seven years, KLK’s PE 

ranged from a low of 14.0x to a high of 29.6x. Average PE was 21.7x. Although there 

is a possibility that KLK’s FFB output growth may exceed our assumption of 1.8% for 

FY16F (FY15: 1.9%), we are keeping our forecast for now to be conservative. From October 2015 to February 2016, KLK’s FFB production grew by 7.2% YoY. In spite of 

the effects of El Nino, it appears that KLK’s FFB yields have fared better than its peers.

The group’s FFB output edged up by 1% YoY in the first two months of 2016F compared 

with declines of 23.9% YoY for IOI Corporation, 5.2% YoY for Genting Plantations and 

3.8% YoY for IJM Plantations. We attribute this to KLK’s smaller exposure to Sabah.

We estimate that about 16.3% of KLK’s planted areas are in Sabah. Indonesia accounts for a significant 53.0% of planted areas while Peninsular Malaysia accounts 

for an additional 27.7%. The balance 3.0% of KLK’s planted areas is in Liberia. Apart 

from the recovery in CPO prices, KLK’s plantation unit is also expected to receive a 

boost from the turnaround in the refineries in Indonesia and higher palm kernel prices 

in FY16F.

The swing into profitability is envisaged to be underpinned by a lower feedstock cost 

resulting from the implementation of the export levy in July 2015. The refineries and 

palm kernel crushing segment in Indonesia recorded a small loss of RM2.4mil in 

FY15. We believe that KLK’s manufacturing unit (mainly oleochemical operations)

would be able to sustain its profitability in FY16F due to the timing of its purchases of raw materials. We have forecast manufacturing EBIT to inch up by 2% in FY16F. Most 

of the oleochemical profits are expected to be driven by the Malaysia operations. KLK’s 

foreign shareholding has improved from a low of 11.06% as at end-September 2015 

to 11.96% as at end-February 2016. In the past five years, the highest level of foreign 

shareholding recorded was 19.2% at end-April 2012.

Malakoff Corporation : T4 plant achieves COD  BuyConstruction Sector : CRC to set up regional HQ at Bandar Malaysia 

Overweight

QUICK TAKES

Benalec Holdings : Benalec stands to gain RM4mil from land sale Technology Sector : Apple announces iPhone SE: a smaller, cheaper smartphone 

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AmWatch

2AmInvestment Bank Bhd

22 March 2016 

Stock Quantity Price Turnover  

(‘000) (RM) (RM’000)

AFG 1,000 3.890 3,890ASTRO 85 2.910 247CARIMIN 22,222 0.450 10,000COMFORT 150 0.845 127DIALOG-WA 390 0.350 136

DLADY 1,000 50.000 50,000ELKDESA-LA 2,360 1.040 2,454GLBHD 50 1.600 80KPOWER 2,700 0.670 1,809MEDAINC 600 0.545 327MUIIND 27,750 0.180 4,995MUIPROP 8,000 0.300 2,400SILKHLD 1,060 0.400 424SKPETRO 130 2.150 280SUNWAY-WA 22,805 0.885 20,183TSRCAP 3,000 0.500 1,500WPRTS 8,000 4.000 32,000WZSATU 120 1.000 120

DIRECT BUSINESS TRANSACTIONS ON THE KLSE

Economic Calendar Release Date

Date Time Country Event Months Survey Actual Prior  

03/22/2016 06:30 Australia ANZ Roy Morgan Weekly Consumer Confidence Index Mar-20 — —03/22/2016 08:30 Australia House Price Index QoQ 4Q — — 2.00%03/22/2016 08:30 Australia House Price Index YoY 4Q — — 10.70%03/22/2016 12:30 Japan All Industry Activity Index MoM Jan — — -0.90%03/22/2016 15:00 Japan Convenience Store Sales YoY Feb — — 1.00%03/22/2016 17:30 United Kingdom CPI MoM Feb — — -0.80%03/22/2016 17:30 United Kingdom CPI YoY Feb — — 0.30%03/22/2016 17:30 United Kingdom CPI Core YoY Feb — — 1.20%03/22/2016 17:30 United Kingdom Retail Price Index Feb — — 258.803/22/2016 17:30 United Kingdom RPI MoM Feb — — -0.70%03/22/2016 17:30 United Kingdom RPI YoY Feb — — 1.30%03/22/2016 17:30 United Kingdom RPI Ex Mort Int.Payments (YoY) Feb — — 1.40%03/22/2016 17:30 United Kingdom PPI Input NSA MoM Feb — — -0.70%03/22/2016 17:30 United Kingdom PPI Input NSA YoY Feb — — -7.60%03/22/2016 17:30 United Kingdom PPI Output NSA MoM Feb — — -0.10%03/22/2016 17:30 United Kingdom PPI Output NSA YoY Feb — — -1.00%03/22/2016 17:30 United Kingdom PPI Output Core NSA MoM Feb — — 0.10%03/22/2016 17:30 United Kingdom PPI Output Core NSA YoY Feb — — 0.00%03/22/2016 17:30 United Kingdom ONS House Price YoY Jan — — 6.70%03/22/2016 17:30 United Kingdom Public Finances (PSNCR) Feb — — -24.9b03/22/2016 17:30 United Kingdom Central Government NCR Feb — — -20.2b03/22/2016 17:30 United Kingdom Public Sector Net Borrowing Feb — — -11.8b03/22/2016 17:30 United Kingdom PSNB ex Banking Groups Feb — — -11.2b03/22/2016 18:00 EURO ZEW Survey Expectations Mar — — 13.603/22/2016 18:00 Malaysia Foreign Reserves Mar-15 — — —03/22/2016 21:00 United States FHFA House Price Index MoM Jan — — —03/22/2016 22:00 United States Richmond Fed Manufact. Index Mar — — —

03/22/2016 03/25 Japan Supermarket Sales YoY Feb — — 2.30%03/22/2016 03/29 Japan Small Business Confidence Mar — — —

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22 March 2016 AmWatch

3AmInvestment Bank Bhd

Benalec Holdings Bhd (RM0.54/share)Benalec stands to gain RM4mil from land sale 

Benalec Holdings Bhd is expected to make a net gain of RM4.17mil from the

proposed disposal of its beneficial interest in 4.252 acres of commercial land inMalacca. It said that the net gain would represent earnings per share of half a senand would improve the company’s net asset per share from 74 sen to 75 senbased on its total issued capital of 799.14 million shares as of June 30, 2015.

In a filing with Bursa, Benalac said it had entered into an agreement with PembinaanKota Laksamana (Melaka) Sdn Bhd and Arah Menang Holdings Sdn Bhd for the jo int sale and disposal of a 41.67 acres in Melaka Tengah for a total saleconsideration of RM83.5mil. – StarBiz 

Technology SectorApple announces iPhone SE: a smaller, cheaper smartphone 

Apple has bucked the bigger-is-better phone trend and released a revampedversion of its 4in iPhone 5S, the new iPhone SE. It will be the smallest smartphonein Apple’s current lineup. Greg Joswiak, VP of product marketing for Apple, said:“Some people simply love smaller phones. And the 4in phone is often their firstiPhone. Some people asked and pleaded with us. So we’re calling it the iPahoneSE. Our most powerful 4in phone ever.” .

It has a metal body, 4in screen, Touch ID fingerprint scanner and a flush cameralens, unlike Apple’s most recent iPhones. The phone will be available in black,white, gold and rose gold. The outside of the device resembles an iPhone 5S butthe inside will be similar to the iPhone 6S, using Apple’s A9 processor, an NFC chipwith support for Apple Pay and a better 12-megapixel camera, in line with Apple’s2015 iPhones. –The Guardian 

News Highlights 

The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed orrecommended in this report may not be suitable for all investors. This report has been prepared for information purposes onlyand is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd mayfrom time to time have a position in or with the securities mentioned herein. Members of the AmBank Group and their affiliatesmay provide services to any company and affiliates of such companies whose securities are mentioned herein. The informationherein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensurethat stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it shouldnot be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinionsand estimates included in this report constitute our judgement as of this date and are subject to change without notice.

For AmInvestment Bank Bhd

Benny ChewSenior Vice President

Equity Research

Published by

AmInvestment Bank Bhd (23742-V)A member of the Ambank Group 

15th Floor Bangunan AmBank Group55 Jalan Raja Chulan50200 Kuala LumpurTel: (03)2070-2444 (research)Fax: (03)2078-3162

Printed byAmInvestment Bank Bhd (23742-V)A member of the Ambank Group 

15th Floor Bangunan AmBank Group55 Jalan Raja Chulan50200 Kuala LumpurTel: (03)2070-2444 (research)Fax: (03)2078-3162