Good morning.
Today, we feature a note on Ranhill Holdings Berhad in our FundTech Radar – 21st August 2018. It is a Malaysian conglomerate with interest in the environment (water) and power sectors. Domestic operations delivered close to 88.3% of Group’s profit after tax.
Fundamental Stance
· A stiff 2-year (FYE16-17) revenue and core PATAMI CAGR of 6% and 79.9% respectively since its listing in 2016.
· Its FY17 core PATAMI margin was up marginally to 4.9% (vs. 4.2% in FY16).
· Net gearing ratio rose to 1.47x as at 30 Jun 18 (vs. 1.36x at 31 Mar 18).
· Consistent dividend payment since its listing. Div. yield of 6.4% with div. payout of 61.4%.
· Targets to own and operate gross 1000 MW power plants and 3000 MLD water and wastewater treatment capacity.
· The development of 300mw combined cycle power plant in Sandakan Sabah is expected to boost Ranhill’s profitability.
· Currently trading at 8.6x 12-month trailing P/E, a 70.4% discount compared to its peers.
Technical Front
The long-term downtrend seems to be taken out.
Resistances: 0.79/0.83/0.90
Supports: 0.75/0.71/0.67
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.
21st Aug 2018
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.
