We upgrade Favco, hold on Bonia & POS and downgrading Bernas / Lay Hong

Favco delivered a plendid performance on its back of orders. 10.38 cents may push its PE to as low as 3-4 times. Strong NTAB and its branding on cane. We will buy more Favco. POS and Bonia having slight increase in performance and the later with reduce profit. We recommend still a hold. Vice versa, we start not comfortable to Bernas as revenue slightly reduce. That may indicate not much room to growth for its business and profit is decreasing for some quarters. We may dispose and change to other company.  An increased revenue but again registered another quarter of loss for Lay Hong.  We will look for another quarter before we decide whether is cost increase or failure of management to control cost.

UMW – better performance with a hold target RM 12.00

3rd quarter results indicated 10% improved revenue and net profit almost doubled. For its industry, a PE of 12-15 times are fair to the market. 3 quarters earnings push potential PE back to 10. Thus, we upgrade its new value to RM 12.00

We like new Camry launching and the recovery of oil and gas industry. Especially its oil and gas arm pending listing. We recommended a hold or buy when dip as long term hold.

Stemlfe – Slight improve of performance

Stemlfe registered est. 15% increase in revenue but 1.84 cents EPS. Which over RM 2 mil. from other income.  We dont consider other income as performance as it may means many things.  Taking out other income we see a slight increase in cost as well.  Therefore probably only 5% increase in profit.  We think is ok but we think there is a need for Stemlfe to look into other new innovative health science. Stem cell is good but with new biz is definitely always a good biz model R&D for new channels of income.

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