KLCI will continue rotational play

KLCI may go through a correction but rotational play is expected on trending counters. Global sentiment over shadow local. KLCI will look for direction but we believe the party is still too early.

Agricultural related picks are LAYHONG, BSDREIT and PLABS. As we agreed that the safe best on next wave is going to be agriculture after metals and oil.

2 thoughts on “KLCI will continue rotational play

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  1. Lay Hong is a counter with good potential but unfortunately Lay Hong has another bad quarter again with EPS -10.45 sen loss . I am just wondering is there any way to find out why Lay Hong loss 4 quarters consecutively ?? While others peer like LTKM has made profit for the last 4 quarters .

    1. Yes, we aware that as we have both follow up these two counters. Actually is very hard to go into detail accounting about the reason. We like Lay Hong as they use to did well. Last 4 quarters losses may cause by rapid expansion or depreciation. What we still like is the continuous growth in revenue. But we will continue to monitor. We have bought in between RM 1.2 average.

      For LTKM, it has a slightly reduced revenue. It also has property development business which is not our bet in agriculture. As this will hard to understand the profit contribution in general.

      We also noticed that cost is increasing for most industry especially food industry. So we makr an assumption that revenue increases to above a margin that can bring Lay Hong back to profitable time.

      Personally we consuming its product and the quality is satisfactory.

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