As we mentioned before that we may start to buying back into property related companies. However, we are not into pure developers as we cannot forecast the time of recovery. We likes either developers with their own assets with recurring income as their portfolio. Alternative same as Paramount where portfolio is well divisified from different income stream.
We like OSK as it is still well diversified with property development. Although yesterday result is profit reduced but we believe it’s valuation still cheap with strong book value.
on 2nd choice will be Ken Holdings. A small size developer undervalued but does have quality assets on hand. With a few new projects will turn the company becomes vibrant.
lastly Insas, a consistent income across its portfolio and start to perform well. well balance portfolio with financial arm that we believe will do well in 2018 can deliver potentially more sterling results.
However, no need to jump into the ship. Buy slowly and accumulate. OSK below RM 1.70. Insas and Ken below RM 1.00 can be accumulated with great confidence.
Gone with the time where news are dominating share prices movement. From the recent sign, we feel great that more investors are earnings oriented. The recent quarters about many companies share prices being punished when result is not good. That’s a sign of maturity which we think is good.
With its earnings continue to improve after a rationalization plan 2 years ago. I expect CIMB will grow further with EPS at 15 times that can move stock price back above RM 7 to 8. Another one quarter improve result will see it soon.
From profit to loan growth. From asset and loan revenue. From impairment to NPL. MBSB is in the right direction and making themselves towards RM 2.00. We reinistiate our buy call into MBSB.
Revenue of 2.8 Bil and reporting a profit in this quarter is a good result. We continue value UMW value at RM 7 and above.
As a pharmaceutical company, a 15 times PE is not unusual. Consistent results give us a view that it should have a minimum of 15 times of it EPS. A continue call for accumulation.
We expect a challenge of 1800 before year end for KLSE. Profitable undervalued stocks will be the next focus 2nd half of the year. RM will also recover and test RM 4.20 soon. We think it is still a good time to hold and stay invested