Our call continue on Climate change and Agriculture

We continue to favour climate change related stock. In KLSE, our bet on Cypark has rocketed to RM 3.00 from our initial recommendation around RM 1.80. HHHcorp also tested RM 0.200 few weeks ago. Left only a highly undervalued Analabs still trading at RM 1.70. We believe the stock stagnant due to lack of new activities in new terms. But it can be a gradual long term buy.

On the other hand, 6888 英達公路再生科技 listed in HSI dropped to HKD 2.10 and trading at around 10 times PE. The stock is affected by recent sentiment of China economy but is at attractive price level. Union Steel of SG is proposing increasing their capacity by buying Chye Hup Heng Sdn Bhd. We still like Union Steel at the price of SGD 0.110 and below.

As for agriculture, beside of Palm oil companies. We rarely can find sizable agriculture company in Malaysia. As such, our reach will continue be in food base companies like Kawan Food, Lonbisc, Layhong and etc. We recommend buy on dip at the current price level as price for food companies in Malaysia needs to be re-valued to reflect its actual potential and soaring demand.

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