Top 5 Picks from J&J for 2nd Half 2012

1. Allianz – Current price RM 5.00 and target price RM 8.00 – RM 10.00 depending on quarterly results. VW business is growing strong and we are expecting VW will become a major brand in Malaysia ahead of Toyota and Honda soon. Besides, conventional life insurance and funds will continue to do well.

2. Spritzr – Continue to deliver steady grow result with its recent Air Asia deal, we expect even a better result ahead. We likes Spritzr because of its continuous brand building and quality enhancement of its product and service portfolio. Our fair value target of this brand should be at RM 1.00 above. No dispute.

3. FocusP – Following brand building, FocusP is venturing into different but related industries on eye sight, new market – Indonesia and more agressive promotion on major shopping malls. We still think a fair PE of 8 to 10 times compare to current 5-6 times PE yearly. We target FocusP 12 months performance to be RM 0.45-0.50 plus a 4-5% dividend yield.

4. Tomei – Our continue jewel if below RM 0.800 and we are continuous nibbling.

5. Affin – We expect an M&A will be soon landing onto Affin and we believe given its majority share holder is Tentera. A fair value of government link acquisition from Maybank, CIMB or RHB will be around RM 4.50. Thus it is a buy as current PE still around 10 times plus dividend yield around 4-5%

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