Cypark second quarter registered consistent growth with EPS at 7.6 cents.  We give an industrial PE at 15 times resulting in a fair value at RM 4.50.  Conservatively we raise our target price to RM 4.00 with a strong buy call.

One of our pass pick that we are still holding on but we recommend not to add weight due to its extreme diversification plan. It has reported flat revenue and profit of approximately RM 0.11. With a quarter to go, if a slight profit will bring the PE back below 10 times. We always like its auto part industry niche play. However, diversifying into healthcare business is yet to see if it can contribute back to its investment. We continue recommend a hold but we do not plan to buy in more at the moment.

Analabs result is disappointing with gross loss and lower revenue recorded for the quarter. Nothing to cheer with only properties revaluation exercise carried out with net values added to its NTA to RM 3.60. We will continue to monitor its performance from now before making next recommended suggestion.

We continuous realize profits from non core picks. We sold Uli-Corp from our purchase price under RM 0.80. We also sold of some Sunzen and its free warrants. There are activities on vets company lately. Both Sunzen and Peter Lab received heavy buying. We swapped the fund from the sell to MBSB and Qcapita to further strengthen our positions.

Even though not necessary that World Cup will have an effect to the stock market. But traditionally perception wise, many people will stay sideline to wait for its over. KLCI will range bound till the end of World Cup. By then if there is no disaster bordering the market. We see KLCI will test 1900 as soon as World Cup final play off completed.

We have disposed Puncak for our water takeover play average above RM 3.60. We don’t know it will go up further or stop here. Our objective is clear and achieved. We swapped to MBSB below RM 2.20 and Qcapita around RM 1.16.

MBSB is one of our top pick still hovering around the same valuation. We still like it as it is undervalued and the M&A play continues. The intention of MBSB going towards a banking license in line with realising values from EPF investment. A potential merger with RHB Bank may be in the plan. After all, base on the current market PE, if all these assumption is not going to happen. We will still have a undervalue stock in our portfolio with reasonable dividend.

For Qcapita, the REIT manager continue deliver splendid result. MRCB portfolio injection into Qcapita will provide a strong potential to attract funds. If the management is retain to be managed by current management team. We are confident that Qcapita will have both capital grow potential with growing yield too.

The recent activities back on Kawan Food is positive sign. We notice continuous accumulation with healthy volume.  Together with good result announced.  We believe Kawan Food will test RM 2.50 soon.

Purely our own perspective. The recent aggressive share price increase may due to corporate exercise or M&A. Profit and business wise, the current price is very lucrative if Lay Hong can continue its current profit trend with a target of min RM 3.00 min valuation can be realized.
However, we advise some selling above RM 2.50 level as practice.

1. MNRB
2. MBSB
3. Kawan
4. Paramount
5. Success

Climate and agriculture portfolio remained unchanged. With our call to continue reduce debt ratio and invest into asset related portfolio.

The entire drama got a clear message now that delisting must go on after SGX issued a letter on 10th June 2014. We do not like the handling methods from Teledata. We also do not like SGX ways either. We will only comment if there is a need to delist is when a company show no will to be lifted anymore. In the case of Teledata, SGX decision to delist Teledata we believe has hurt not the major but also the minority share holder. Purely go by the book practises.

We will wait for the next action plan from the management of Teledata. An exit plan if any and option to go private together. If SGX is to be really something, they will need to govern the share holder I believe a need to offer buy back at least at SGD 0.01. Given historical price on recent placement, NTA, share issued for acquisition and off market deal.

On our point of view, the management need to only have a one genuine action. Inform publicly that Teledata can delist on SGX and re-list in Jakarta, London, KLSE or even Thailand exchanges. With the plan and its current revenue and profit. Teledata can easily fetch good market pricing compare staying in SGX.

If the major share holder Irene is genuine. It is no rocket math to come out with a quick solution and continue its business. Life without SGX may be even better. Else, offer a right price for minority to exit.

Puncak roared to above RM 3.30 and we expect at least will have a market capital trading near RM 1.5 billion. Thus, we put our target at RM 3.50 as optional sell. We however do not link life after the deal. So we calling an option start selling from RM 3.50 and above.