Strategy: With Fitch's surprise move to raise Malaysia's outlook from negative to stable and refrain from downgrading sovereign credit ratings, Maybank-KE's forex team now expects USDMYR to test lower levels of 3.65-3.70 in coming weeks.
The stocks within house coverage in Singapore that have exposure to Malaysia and the MYR are:
BUYs
- Super Group (TP $1.57) - Malaysia accounts for 8-9% of group revenue, mainly coming from coffee and cereal categories. GST implementation and the slide in SGDMYR had led to poor sentiment overhanging the stock.
- Starhill Global REIT (TP $0.97) - FY15 contribution from Malaysian properties Lot 10 and Starhill Gallery is expected to be $27.7m (16.7% NPI) factoring a 3.7% YoY depreciation in the MYR to 2.68.
HOLDs
- OSIM (TP $2.08) - Malaysia is a substantial part of South Asia revenue which accounts for 21% of group revenue.
- ISEC Healthcare (TP $0.44) - Malaysia accounts for a substantial 80% of revenue and 60% of net profit.
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