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Maybank Investment Bank Issues 8 New Call Warrants
by Cals Thu 16 Jan 2014, 07:40
Maybank Investment Bank Issues 8 New Call Warrants
Posted on 16 January 2014 - 05:39am
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PETALING JAYA (Jan 16, 2014): Maybank Investment Bank Bhd will issue eight new European style cash-settled call warrants (CW) with an issue size of 100 million each today.
The warrants is over ordinary shares of Berjaya Corporation Bhd (BCorp), Genting Malaysia Bhd, Genting Bhd (GENT), Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Magnum Bhd, Supermax Corporation Bhd and Top Glove Corporation Bhd.
"This tranche focuses on the gaming and rubber glove manufacturing segment," Maybank Investment said in a statement yesterday.
Gaming, it noted, remains an attractive sector due to its resilient nature.
"With the Malaysian government announcing year 2014 as a Visit Malaysia Year, gaming operators with tourism industry exposure are expected to benefit from the increased tourist arrivals," it explained.
Four of the underlyings for the tranche are rubber glove manufacturers which it believed are expected to benefit from more competitively-priced products in international markets with the recent moves in the US dollar-ringgit exchange
rate.
It said that Hartalega's new production plant in Sepang is expected to begin operations in September 2013 and increase production capacity by 15% over eight years. RM1.9 billion has been budgeted for the new facility.
Kossan, it noted, has been loss-free since 1980 and consistently strong operating performance is one of its attractions. For financial year 2014, Kossan is expecting to expand glove production capacity to 27 billion pieces by end 2014.
Supermax which has an annual production capacity of 17.6 billion pieces, it pointed out will be involved in Glove City and Supermax Business Park projects to increase production capacity.
On the other hand, Topglove is the world's largest latex glove manufacturer with annual production capacity of 43.9 billion pieces.
Maybank Research believes that the RM5 billion rejuvenation plan of Resort World Genting and the historical correlation between the number of rooms and revenue will be the key earnings drivers for Genting.
As for GENT, Maybank Research has a hold call due to the uncertain outlook of Genting Singapore (GENS) and potential overhang in shares as the warrants are deep in the money. A potential re-rating for GENT would be a casino license for GENS in Japan, it said.
Meanwhile, it said, Magnum and BCorp have been beaten down in December 2013 and January 2014 respectively due to uncertainty of the effect of the number forecast operations sector. BJCORP is a holding company which holds a major stake in Berjaya Sports Toto (BST).
"These are opportunities to collect on any surprise catalyst for the sector," it said.
The call warrants was given gearings as follows, BCorp-CP (2.44 times), Genting-C7 (4.86 times), GentingC15 (5.67 times), Hartallega-CL (4.86 times), Kossan-CE (3.89 times), Magnum-CU (4.12 times), Supermax-CT (3.63 times) and Topglove-CR (5.38 times).
The tenure of all eight CWs above is about 12 months.
[You must be registered and logged in to see this link.]
PETALING JAYA (Jan 16, 2014): Maybank Investment Bank Bhd will issue eight new European style cash-settled call warrants (CW) with an issue size of 100 million each today.
The warrants is over ordinary shares of Berjaya Corporation Bhd (BCorp), Genting Malaysia Bhd, Genting Bhd (GENT), Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Magnum Bhd, Supermax Corporation Bhd and Top Glove Corporation Bhd.
"This tranche focuses on the gaming and rubber glove manufacturing segment," Maybank Investment said in a statement yesterday.
Gaming, it noted, remains an attractive sector due to its resilient nature.
"With the Malaysian government announcing year 2014 as a Visit Malaysia Year, gaming operators with tourism industry exposure are expected to benefit from the increased tourist arrivals," it explained.
Four of the underlyings for the tranche are rubber glove manufacturers which it believed are expected to benefit from more competitively-priced products in international markets with the recent moves in the US dollar-ringgit exchange
rate.
It said that Hartalega's new production plant in Sepang is expected to begin operations in September 2013 and increase production capacity by 15% over eight years. RM1.9 billion has been budgeted for the new facility.
Kossan, it noted, has been loss-free since 1980 and consistently strong operating performance is one of its attractions. For financial year 2014, Kossan is expecting to expand glove production capacity to 27 billion pieces by end 2014.
Supermax which has an annual production capacity of 17.6 billion pieces, it pointed out will be involved in Glove City and Supermax Business Park projects to increase production capacity.
On the other hand, Topglove is the world's largest latex glove manufacturer with annual production capacity of 43.9 billion pieces.
Maybank Research believes that the RM5 billion rejuvenation plan of Resort World Genting and the historical correlation between the number of rooms and revenue will be the key earnings drivers for Genting.
As for GENT, Maybank Research has a hold call due to the uncertain outlook of Genting Singapore (GENS) and potential overhang in shares as the warrants are deep in the money. A potential re-rating for GENT would be a casino license for GENS in Japan, it said.
Meanwhile, it said, Magnum and BCorp have been beaten down in December 2013 and January 2014 respectively due to uncertainty of the effect of the number forecast operations sector. BJCORP is a holding company which holds a major stake in Berjaya Sports Toto (BST).
"These are opportunities to collect on any surprise catalyst for the sector," it said.
The call warrants was given gearings as follows, BCorp-CP (2.44 times), Genting-C7 (4.86 times), GentingC15 (5.67 times), Hartallega-CL (4.86 times), Kossan-CE (3.89 times), Magnum-CU (4.12 times), Supermax-CT (3.63 times) and Topglove-CR (5.38 times).
The tenure of all eight CWs above is about 12 months.
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
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d have been right perhaps as often as seven out of ten times.â€
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Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
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